# Pakistan Economy - News & Updates



## Neo

Continued from here.


----------



## Neo

*SECP registers 296 companies during May​*
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) registered 296 companies during May 2009, which is 26 companies more than the number of companies registered during April.

With new incorporations, the total corporate portfolio as on May 31, 2009 comprises of 53,324 registered companies. Of these 296 companies incorporated during May, 284 companies were limited by shares, comprising of one public unlisted company, 273 private companies and 10 single member companies. In addition, three associations not-for-profit under section 42 of the Companies Ordinance, 1984 and nine foreign companies were also registered.

Total authorised capital and paid-up capital of 296 companies incorporated during May 2009 amounted to Rs 529 million and Rs 122 million, respectively.

The number of new incorporations was highest at Lahore, whereby 111 companies have been registered, followed by Islamabad registering 87 companies, Karachi with 66 companies. Peshawar, Quetta, Faisalabad and Multan registered 20, 5, 5 and 2 companies respectively. The highest number of company incorporation was witnessed in the services sector comprising of 43 companies, followed by 40 in tourism, 34 in trading, 28 in construction, 22 in communication and 22 in information technology sector.

Reactions: Like Like:
1


----------



## Neo

*ADB suggests medium-term policy package for Pakistan​*
ISLAMABAD: Asian Development Bank has suggested Pakistans policymakers a package of policies for the medium-term to manage current economic crisis and put the economy on path of sustained growth.

The working paper, A Reinterpretation of Pakistans Economic Crisis contains these suggestions.

The working paper has suggested that policymakers in Pakistan should adopt a package of policies that include reorient emphasis toward employment-creating policies and away from growth for-its-own-sake policies.

The suggestions include: growth must be placed within the context of achieving full employment with price stability; regressive taxes should be replaced with progressive direct taxes to reduce the burden on low-income and low-wealth households; high core inflation should be addressed through a combination of more moderate monetary policies (lower interest rates), reduction of programmes with a strong inflationary bias, and a programme of wage stabilisation.

In this regard, a comprehensive job creation program can play an important role in moving the economy to full employment while simultaneously enhancing wages and prices stability.

The working paper defines the role of ADB and states that at first and foremost, it is of paramount importance to understand the overall developmental challenges that the country faces. Pakistan is an economy characterized by vastly underutilized resources. These resources are available for production and can help the economy respond in real terms to a sustained increase in nominal demand for goods and services. ADB recognise that in the short run, there may be supply bottlenecks that can retard growth. There is either disguised unemployment or a substantial traditional sector where productivity is below that in the modern sector.

Second, concentrating exclusively on the financial problems will not provide a long-term solution and a sustainable development path. For this reason, austerity programs, derived from the premise that Pakistan has been living beyond its means, will reduce the capacity of the government to engineer a solution to the structural problems that afflict the country.

While it is true that from an accounting point of view Pakistans problem is that domestic absorption has outpaced output, the existence of very large underutilized resources indicates that Pakistan is living below its means. The austerity approach to policy may restore foreign reserves and slow inflation but it provides no sustainable path to engineer the conditions that will support growth. Once growth is reactivated, the same structural impediments that were dormant during the austerity period would return to endanger economic stability.

Third, budget support should not be linked to conditionalities about the size of the budget or of the deficit. The latter should be analyzed in the context of the objectives to be achieved, in particular, how to keep the total spending in the economy at the rate necessary to ensure that all the goods that is possible to produce are purchased. In this sense, the idea of balancing the budget (over a decade, during a year, or at the end of each fortnight) becomes a meaningless objective.

Reactions: Like Like:
2


----------



## Neo

*Rs 45bn allocation likely for water sector in PSDP 2009-10​*
** Development budget for water sector includes allocations for construction of dams, canals, drainage and reclamation projects, investigation schemes​*
ISLAMABAD: In the budgetary preparation process, the National Economic Council (NEC) is likely to allocate Rs 45.024 billion for the water sector in the Public Sector Development Programme 2009-10, sources told Daily Times on Wednesday.

The sources said the government was likely to approve Rs 39.019 billion for 65 ongoing development schemes in the water sector and Rs 6.005 billion for 18 new development schemes.

Projects: In the development budget for the water sector, major allocations have been made for construction of dams, canals, drainage and reclamation projects, general investigations schemes, and federally-funded provincial projects.

In the ongoing schemes, the government allocated Rs 12 billion for the raising of Mangla Dam, including resettlement, Rs 180 million for Mirani Dam, Rs 100 million for Mirani Dam Project, Rs 100 million for completion of Sabakzai Dam, Rs 50 million for construction of Satpara Multipurpose Dam and Rs 2 billion for the construction of Gomal Zam Dam.

The government was likely to approve Rs 60 million for feasibility studies of Naulong and Hingol dams in Balochistan and another Rs 60 million for their construction, the sources said.

In its meeting today (Thursday), the NEC is likely to approve an allocation of Rs 50 million for the restoration of Bolan Dam in Kachhi district, Balochistan, Rs 600 million for the construction of 100 Delay Action Dams in Balochistan, Rs 200 million for construction of 20 small dams in the NWFP, Rs 15 million for a feasibility study of small dams in the NWFP, Rs 400 million for the Naigai Dam in Dadu, Sindh and Rs 10 million for a feasibility study on increasing the capacity of Baran Dam and construction of the Tochi-Baran Link in the NWFP.

Other allocations for the ongoing projects are Rs 1 billion for the revamping/rehabilitation of irrigation and drainage system in Sindh, Rs 3.5 billion for the extension of Right Bank Outfall Drain (IBOD-II) from Sehwan to the Arabian Sea, Rs 1 billion for lining of irrigation channels in Punjab and Rs 1 billion for the extension of Pat Feeder Canal for the utilisation of Indus water in Balochistan.

In the new projects the government is likely to approve funds for several small dams across the country. The small dams include Hingol, Naulong, Garuk, Pelar, Winder, Basol, Sukleii and Badinzai dams in Balochistan; Nai Gaj, Darwat, Khadeji, Salari, Sita, Khenji, Taroan and Nali dams in Sindh; Tank Zam, Daraban, Chudwan Zam, Sheikh Haider, Chashmai Akor, Showkas, Totakan Kuhai and Qadam/Tangi dams in the NWFP and Papin, Ghabir, Kol Fateh, Mujahid, Lawa, Mora Shera, Jamalwal and Check dams in Punjab.

Reactions: Like Like:
2


----------



## Neo

*Holbrooke assures full help in reconstruction phase : US announces extra $200m for IDPs​*
** Zardari says government has to win hearts and minds of people
* Says trade is more important to Pakistan than aid​*
ISLAMABAD: US President Barack Obama is seeking an additional $200 million to help the internally displaced persons (IDPs) of Swat and Malakand division, US Special Representative for Pakistan and Afghanistan Richard Hobrooke said on Wednesday.

Today, the president (Obama) requested the Congress of the US to allocate an additional $200 million, he told a joint press conference with President Asif Ali Zardari and Foreign Minister Shah Mehmood Qureshi. He said the reconstruction phase would be very important and critical, and assured full American help and support in this phase.

We are committed to helping you strengthen democracy, to defeat militants in the west who threaten democracy in Pakistan, democracy in Afghanistan and stability throughout the region, he said.

The US has already announced $110 million for the IDPs, and Holbrooke said if the additional $200 million were allocated, the total US aid would exceed $300 million. The special envoy also urged other nations, including the European Union and the Gulf Cooperation Council (GCC) to do more to assist Pakistan deal with the IDP crisis. Holbrooke also plans to visit the IDP camps in NWFP today (Thursday).

Hearts and minds: To questions on an end to the war in Swat, President Zardari refused to set a timeline. To say that the war is won or that the war is going well is too soon. We have a war of ideology to fight, we have a war where we have hearts and minds to win, he said. Prior to the press conference, he asked Holbrooke during a meeting to grant greater market access to Pakistani goods in its market. Trade is more important to Pakistan than aid, he said.

Earlier, in his opening remarks, Foreign Minister Shah Mehmood Qureshi said Pakistan was committed to defeating terrorism. We have taken a decisive decision to take on militants, extremists and terrorists, he said.

Reactions: Like Like:
2


----------



## Neo

*Pakistani firms to be encouraged to build pipeline: GSPA approved by Cabinet​* 
ISLAMABAD (June 04 2009): Federal Cabinet on Wednesday accorded approval to signing Gas Sale Purchase Agreement (GSPA) on Iran-Pakistan gas pipeline project. Giving details of the Cabinet meeting at a news conference, Information Minister Qamar-uz-Zaman said that the Cabinet authorised the Ministry of Petroleum and Natural Resources for formal signing of agreement with the Iranian government, hopefully, in June.

According to APP, the minister hoped that the final agreement would be inked by mid-June. He said that the government would encourage the Pakistani firms to build this gas pipeline. After analysing the current more than expected wheat production, the Cabinet met with Prime Minister Syed Yousuf Raza Gilani in chair also allowed export of 200,000 tons of wheat products with immediate effect.

About the wheat procurement by Passco and provinces, Kaira said that the country surpassed the initial target of 6.5 million tons by procuring over 10 million tons of wheat so far. Though the final estimate would be available in July, initial estimates indicate good wheat crop this year.

The Cabinet also decided that the provinces should lift their stock of wheat that was imported on their demand. The meeting decided that the provinces should start early release of wheat stocks to flour mills for which issue price of 975/40-kg has already been announced. The issue price could be enhanced according to price trends subsequently. The Cabinet also decided to purchase an additional 50,000 tons of rain-damaged paddy in Sindh and Balochistan by Passco at Rs 750 per 40 kg.

The meeting gave approval to import 300,000 tons of fertiliser to meet the requirement of the coming months for Kharif crop. The Cabinet also accorded approval to allowing the private sector to import urea fertiliser. The country requires 2.9 million tons fertiliser for the Kharif crops against the domestic production of 2.55 million tons. He said that the Cabinet had allowed import of 0.3 million tons to bridge the shortfall to ensure availability of fertiliser.

The Prime Minister directed the concerned ministry that all necessary measures should be employed for timely and effective distribution of fertilisers with the close co-operation of the provincial governments aimed at facilitating easy availability to farmers. Presently, the government is extending Rs 800 subsidy per bag of fertiliser.

The minister said the Cabinet was told that a list of IDPs who have been verified by Nadra was provided to UBL for issuance of cards for disbursement of Rs 25,000 cash grant. United Bank would start issuing cards from Monday and registered families would receive Rs 25,000 grant from Tuesday.

He said that the Cabinet was informed that efforts are being made to restore basic facilities in those areas cleared of militants to facilitate early repatriation of IDPs. The meeting was also briefed on the status of donors' assistance for IDPs.

About abducted students of Razmak Cadet College, the minister said that out of 128 kidnapped students 81 have been recovered while 41 students and five teachers are still missing. Efforts are being made for their safe recovery, he added. To look into the affairs of Zakat, the Prime Minister constituted a Cabinet ministerial committee comprising the Minister for Zakat, the Minister for Religious Affairs, the Minister for Parliamentary Affairs and the Advisor on Finance.

The other decisions the meeting took are giving approval to start negotiations for an agreement on military co-operation between the government of the State of Qatar and Pakistan, ratified the memorandum of agreement on the establishment of joint economic co-ordination between Pakistan and Philippines.

The meeting granted permission to start negotiations with the Hashemite Kingdom of Jordan for entering an agreement on co-operation in the field of vocational training. Under the agreement, both countries would cooperate and exchange expertise, legislation, studies, training programmes, etc, which will help train and upgrade vocational trainers and young people to make their mark in the labour market.

The Cabinet ratified the decisions taken by the ECC on May 29, 2009. This included establishment of Export Processing Zones Authority (EPZA) tech tower in six acres. The ECC meeting also considered introduction of Ethanol-10 Blended Fuel in Pakistan.

The meeting allowed marketing of E-10 motor vehicle fuel on trial basis. A committee comprising ministries for Industries & Production, Petroleum and Natural Resources, Secretaries Finance and Industries & Production was constituted to consider and examine the incentive package.

The meeting also decided to restrict the issuance of LPG marketing licences to only applicants who have duly executed agreements with local or international LPG production sources committing supplies of LPG at least for a period of five years.

The ECC meeting also allowed OGDCL to supply 20-24 mmcfd gas from their Bahu field to M/s Fauji Kabirwala Power Company Ltd. The meeting also approved issuance of government guarantee of Rs 1 billion for Pakistan Textile City Karachi for two years. The Ministry of Social Welfare and Special Education briefed the Cabinet on its one-year performance and future plans.

Reactions: Like Like:
2


----------



## Neo

*July-April: Rs 145 billion released for PSDP projects​* 
ISLAMABAD (June 04 2009): The Finance Ministry released Rs 145 billion for development projects under Public Sector Development Programme (PSDP) during nine months (July-April) of the current financial year. According to sources, the Ministry has assured the Planning Commission that it would release the entire amount of Rs 219 billion allocated for development projects under PSDP by the end of June 2009.

The so far released amount includes 66 percent foreign aid and 39 percent of the original allocation. Due to financial constraints during the current financial year 2008-09, the government had conducted a rationalisation exercise to reduce the burden on PSDP.

Initially, the Planning Commission advised the Ministries/Divisions in August 2008 to review their ongoing and future projects/programmes focusing on high priority projects; medium priority projects; projects likely to be delayed for 2-3 years; projects to be dropped/discontinued and projects likely to be shifted on public private partnership (PPP) mode.

In January 2009, Finance Division advised the Planning Commission to reduce throw forward of ongoing projects by 20 percent to qualify for World Bank's Poverty Reduction Support Credit-1 (PRSC-1). In turn, Ministries/Divisions were requested to review their ongoing portfolio and identify possible savings placing projects in categories including:

Projects of high priority to be fully protected; Projects which implementation could be delayed for 1-2 years; to identify projects to be dropped from PSDP, projects likely to be shifted to the public private partnership mode and projects in Balochistan NWFP be exempted from any rationalisation.

Consequently, 140 projects were either discontinued or placed for execution as private public partnership that reduced future liability by Rs 385 billion. In March 2009, Finance Division reduced the size of federal PSDP to Rs 219 billion against approved size of Rs 371 billion. Finance Division has also transferred the Benazir Income Support Programme from the development to current budget.

Finance Division slashed allocation in infrastructure sector by 50-70 percent from Rs 178 billion to Rs 96 billion with Rs 82 billion reduction. Social sector allocation was reduced by 70 percent of original allocation from Rs 161 to Rs 99 billion placing a cut of Rs 62 billion. Production sector faced a reduction of Rs 3 billion from Rs 20 to Rs 17 billion, Science and Technology Infrastructure from Rs 7 to Rs 5 billion and Environment allocation was reduced from Rs 5 to Rs 2 billion.

Reactions: Like Like:
2


----------



## Neo

*Stand-by arrangement: ADB raises serious reservations over IMF conditionalities​* 
ISLAMABAD (June 04 2009): The Asian Development Bank (ADB) has raised serious objections on IMF conditionalities under the "standby arrangement", with the argument that the IMF agreement reflects "conventional" approach to dealing with macroeconomic imbalances in Pakistan.

An ADB working paper on the assessment of IMF program and its conditionalities, released on Wednesday, contains policy advice that differs markedly from that of the International Monetary Fund. One of the authors of the report also co-authored an article in Far Eastern Economic Review, together with the Director-General of the Department who deals with Pakistan, titled 'Plea to Pakistan: Fix Your Economy', in February this year.

*THE ANALYSIS WAS BAFFLING FOR THREE REASONS:*

(i) the forum ie Far Eastern Economic Review was not appropriate as it could have negatively impacted on direct foreign investment to Pakistan;

(ii) it was undertaken by a department which is propped up mainly by its lending to this country and the article was in conflict with the duties of the staff of an IFI; and

(iii) the analysis was shallow and the authors' attempt appeared to be self-aggrandisement rather than a serious analytical piece. A former Advisor to Ministry of Finance, Dr Ashfaq Ahsan, said that he did not agree with ADB point of view about going into IMF program.

Additionally, multilaterals have areas of expertise that they strictly adhere to in the spirit of harmonisation among the multilaterals so as not to duplicate efforts. IMF remains the institution that has the necessary expertise to deal with macroeconomic issues.

Pakistan government went on the IMF program and accepted the conditions based on its economic needs at the time. The result seven months down the line is that the budget deficit has become sustainable; the rupee is stable at around 81/dollar; and growth rate remains positive in contrast to other countries struggling with global recession.

In contrast, ADB is primarily a lending institution that has not even been successful in achieving its overarching objective: poverty reduction at least in this country as is amply borne by the rise in poverty levels as revealed by Assef Ahmed Ali of the Planning Commission. Ashfaq said that whatever policies Pakistan pursued were the right policies and these should be continued in the next fiscal year as well.

According to ADB report, it is believed that the IMF program does not correctly portray the source of inflation pressures, or the constraints on economic development. There is still latitude within the constrained policy environment to pursue more sustainable outcomes than those established by the limited horizons set by the IMF agreement.

*THE PROBLEM WITH THE FUND'S APPROACH IS THAT IT IS LESS THAN CLEAR ON:*

(i) the nature of currency sovereignty;

(ii) the nature and financing of budget deficits; and

(iii) the nature and financing of trade deficits. This matters because while it is true that Pakistan's problems are largely the result of misguided policies, it does not mean that the only solution available is to subject the economy to an austerity program.

The Bank has recommended that tax policy needs to be reformulated to replace regressive taxes with progressive direct taxes to reduce the burden on low-income and low-wealth households. The raising of taxes is a highly problematic policy for a nation whose growth was already slowing even before the global crisis generated recession throughout much of the world.

The ADB said that another government policy emphasis has been to stabilise the exchange rate. The typical method used in many nations is to target inflation, reduce budget deficits, and encourage exports. This is exactly the logic of the current IMF agreement. It is possible that this package of policies can generate short-run benefits by allowing accumulation of foreign currency reserves that can be used to appreciate the currency.

However, this outcome conflicts with promotion of long-run economic and political sustainability. Indeed, there are some inherent conflicts between maintaining a strong currency and promoting exports--a conflict that can only be temporarily resolved by reducing domestic wages, often through fiscal and monetary austerity measures that keep unemployment high.

The best way to stabilise the exchange rate is to build sustainable growth through high employment with stable prices and appropriate productivity improvements. An export-led growth strategy based on restraining wage increases sacrifices domestic policy independence and places maintaining a stable exchange rate as a top policy goal.

The IMF is particularly concerned with SBP financing of the budget deficit. Since July 1, the government is said to have borrowed about $2.5 billion from the SBP; the government's goal is to reduce that to zero. Such borrowing is thought to be effectively "government printing of money" to finance its deficit; the orthodox view is that this is highly inflationary.

Hence, the goal is to eliminate such borrowing for the remainder of the year, forcing the government to turn to "markets" for its borrowing. It will then need to offer sufficiently attractive interest rates on its debt; this will allow the government's borrowing costs to rise to market rates (as mentioned, this would be at least 15 percent now).

The ADB has further argued that the IMF conditions will reduce the capacity of the government to engineer a solution to the problems of inflation and falling foreign currency reserves without increasing the unemployed buffer stock.

The Bank further disagreed with the orthodox analysis that Pakistan needs to foster conditions that will reduce its dependence on imports. The growth and development path chosen will make a difference to the country's capacity to import.

However, it considered that the orthodox solution to a current account deficit will actually make it more difficult for Pakistan to reduce dependence on imports. The ADB believes that the IMF conditions will reduce the capacity of the government to engineer a solution to the problems of inflation and falling foreign currency reserves, without increasing the unemployed buffer stock.

While the IMF statement suggests it is keenly aware of the need to deploy a "socially acceptable" solution, the ADB considers that a policy strategy based largely on fiscal austerity will create unacceptable levels of socio-economic hardship.

Further, the ADB thinks the program addresses the failures in the policies of the previous government, largely focused on a consumer-driven growth strategy despite the import dependent nature of the economy. It is clear that while the country enjoyed very high levels of FDI, the funds were largely concentrated in the consumer sector.

*THIS HAD TWO CONSEQUENCES:* (i) it increased demand for foreign exchange; and (ii) it created a foreign exchange liability. The other significant point is that this investment did not generate corresponding amounts of foreign exchange revenue because it did not improve export capacity.

The policy emphasis on fiscal restraint is also fraught with problems. Targets to reduce the budget deficit as required by the IMF agreement may help lower inflation, but only because the "fiscal drag" acts as a deflationary mechanism that forces the economy to operate under conditions of excess capacity and unemployment.

This type of deflationary strategy does not build productive capacity and the related supporting infrastructure, thus offers no "growth solution". Likewise, fiscal restraint may not be successful in lowering budget deficits for the simple reason that tax revenue can fall as the taxable base shrinks because economic activity is curtailed.

To deal with the issue of crisis management, the ADB has proposed that it is highly likely that the IMF will continue to provide loans as needed, but with conditions that include fiscal restraint. Unfortunately, this is a risky time for budget cuts, which would entail both economic and political repercussions. Significant budget cuts can only be made in the areas of military spending, food and fuel subsidies, pensions, or development. For obvious reasons, cuts in all of these areas would be problematic.

The alternative is to raise taxes--again a highly problematic policy for a nation whose growth was already slowing even before the global crisis generated recession throughout much of the world. The ADB further objected that the policy emphasis on fiscal restraint is also fraught with problems.

The report could be found on the ADB website (Asian Development Bank (ADB) - Fighting Poverty in Asia and the Pacific - ADB.org Pakistan/default.asp) under the title: "A Reinterpretation of Pakistan's 'Economic Crisis' and Options for Policymakers".

Reactions: Like Like:
2


----------



## Neo

*SBP cuts '09 growth forecast to 2-3 pct​*
KARACHI ( June 04, 2009): State Bank of Pakistan (SBP) lowered on Thursday its gross domestic product (GDP) growth forecast for the 2008-09 (July-June) fiscal year to between 2.0-3.0 percent from its previous estimate of 2.5-3.5 percent.

Pakistan achieved GDP growth of 5.8 percent in the 2007-08 fiscal year, and the government had originally set a growth target of 5.5 percent for the current year.

In a quarterly report, SBP also raised its 2008-09 average inflation forecast to between 20.5-21.5 percent from an earlier forecast of between 19.5-20.5 percent.

Reactions: Like Like:
1


----------



## Neo

*Government expects approval of four projects: World Bank Board meets today​* 
ISLAMABAD (June 04 2009): The World Bank (WB) is likely to consider five development projects worth $1.2 billion as the WB board meets on Thursday in Washington. Sources told Business Recorder on Wednesday that Pakistan is seeking the amount for various development projects in education, poverty alleviation and social safety net.

The projects include Sindh Education Sector Programme costing $300 million, Punjab Education Sector Programme $350 million, Poverty Alleviation Fund III $200 million and Social Safety Credit Policy worth $200 million. According to sources there is another project, however, they refrained from giving any detail. The government expects that the Board would only approve the four projects costing around $1050 million.

Reactions: Like Like:
1


----------



## Neo

*Pakistan Central Bank Trims Growth Forecast​*
By C.R. JAYACHANDRAN and HARIS ZAMIR

KARACHI -- Pakistan's economy is likely to grow just 2% to 3% this financial year with inflation slowing sharply, the central bank said Thursday, indicating it remains biased toward supporting the economy even with inflation running in the double digits.

"While the improvement in macroeconomic indicators is very encouraging, the economy is not out of the woods yet," the State Bank of Pakistan said in a quarterly report. "Major macroeconomic indicators show underlying weaknesses which, if not addressed, could hamper economic recovery."

The new forecast for the year ending this month represents a slowdown from last fiscal year's 5.5% growth and is below the 2.5% to 3.5% that the central bank forecast in April. It compares with a full-year growth forecast of 2.10% to 2.17% given in May by Shaukat Tarin, adviser to the prime minister and the country's de facto finance minister.

The central bank cited "stubbornly high inflation, massive deterioration in external accounts and declining industrial output," especially among big manufacturers, for the weaker growth forecast.

Manufacturing output fell 7.7% for the nine months through March from the same period a year earlier, according to the latest available data. In the year-earlier period manufacturing grew 5%.

The central bank cut its key lending rate by 100 basis points in April to 14%. Consumer-price inflation eased to 17.19% on year in April from 19.02% in March. Inflation, which peaked at 25.3% in August, will come in at 20.5%-21.5% for the full fiscal year, the central bank said.

Although offering no specific forecast beyond this fiscal year, the central bank said it expects the inflation rate will continue to fall sharply in the next few months on the lagged impact of its earlier tight monetary stance, declining international commodity prices and weaker domestic demand.

It forecasts Pakistan's fiscal deficit will narrow to 4.0% to 4.5% of gross domestic product this financial year from 7.4% last financial year, though the central bank acknowledged its forecast might be tough to hit.

"The anticipated weaker performance of revenues and increase in expenditures both point to the risk of slippage in the fiscal-deficit target, and a contingent increase in financing requirements," the central bank said in its report.

The central bank's new projections look more realistic as increased terrorist attacks and the army's aggressive fight against Taliban militants in the Swat Valley and elsewhere continue to plague the economy, said Khalid Iqbal Siddiqui, head of research at Karachi-based Invest and Finance Securities.

"Higher interest rates and acute power shortages have also eroded industrial growth," Mr. Siddiqui said. But in the coming financial year, "the economy is likely to fare a little better on the possibility that operations in the northern part of the country against the Taliban will end and the government can focus more on measures to boost the economy."

Reactions: Like Like:
2


----------



## Neo

*Pakistan, France will ink civil nuclear deal in December: FO​*
ISLAMABAD: Pakistan and France would sign civil nuclear deal in December. In a weekly press briefing, foreign office spokesman said initial negotiations for nuclear deal will be completed in July and the deal would be signed in December.He said Pakistan wants early resumption of talks with India but no conditions being attached for talks.

Replying to a question regarding Kashmir issue, spokesman said there is no confusion or compromise made on Kashmir issue. He termed the statement of Indian external ministers statement about restoration of peace as positive and said Foreign Secretary Salman Bashir would meet Indian High Commissioner today in this connection. Pakistan is in touch with US for the resolution of Kashmir issue.

Foreign office spokesman said government is appealing against release of Hafiz Saeed and we will wait for verdict.

Reactions: Like Like:
2


----------



## Neo

* Pakistan asks world to write off all loans since 2005​*By Masood Haider
Thursday, 04 Jun, 2009

NEW YORK: Pakistans Ambassador to the United Nations Abdullah Husain Haroon Tuesday called on the international community to help Pakistan overcome the desperate humanitarian crisis emerging in the wake of military action against militant groups. He suggested that the best way to do so would be for all loans given to Pakistan by international donors following the 2005 earthquake to be forgiven.

Speaking at a meeting on the emerging crisis at Asia Society here he said this was not Americas war on terror; it was worlds war against the scourge.

The world, therefore, has a responsibility to come to the aid of Pakistan, which had in the past few years been hit by a series of disasters  the 2005 earthquake, the 2007 floods and lately by an astronomical rise in energy and food prices.

Also making an appeal to send money to Pakistan was George Rupp, Chief Executive Officer of International Rescue Committee who felt that $ 110 million dollars sent Pakistan by the United States were not enough.

Substantially much more money was needed to fight this war, which he felt would be long and protracted.

Asked about the morale of the army in fighting the militants Ambassador Haroon said that [The] Pakistan Army was clearing the valley of the Taliban as it advanced to other areas. The Taliban will not go in a hurry, he said, adding, They keep coming back.

Replying to a question, the ambassador said that adequate mechanisms and monitoring systems were in place to ensure that money being pumped into Pakistan did not go into wrong hand and was used fog the welfare of the affected and for the development of the region.

Questioned about the release of Jamaatud Dawa chief Hafiz Saeed, Haroon said that he was set free by Pakistans independent judiciary, which emerged at the climax of the lawyers movement. The move did not violate any UN Security Council resolution or decisions.

Nicolas Platt, former US Ambassador to Pakistan, was moderator at the panel discussion.

Reactions: Like Like:
2


----------



## Neo

* ADB report says Pakistan living beyond its means​*By Amin Ahmed
Wednesday, 03 Jun, 2009

RAWALPINDI: The countrys burgeoning current account deficit indicates Pakistan was living beyond its means with excessive domestic demand boosting imports and fuelling the inflation which restrict exports, according to the Asian Development Bank in its latest report on the economic crisis of Pakistan.

This orthodox interpretation of the external financial situation of the country presumes the current account deficit must be financed by flows of foreign reserves, which for the most part must be attracted by high returns and a stable political, economic and social environment, says the report titled: A Reinterpretation of Pakistans Economic Crisis and Options for Policy Makers.

The worsening trade account implies that local Pakistani consumption became dependent on the whims of foreign lenders. Further, given its large budget deficit, the government is said to be increasingly dependent on the foreign purchases of its debt to supplement domestic savers purchases of government debt.

The report warns if Pakistan cannot attract these needed reserves, it must slow its growth to reduce imports; lowering prices and wages could also encourage exports.

Thus, both monetary and fiscal policy ought to be tightened to encourage such capital flows even as this reduces the need for them, the report suggests.

Summing up how Pakistans new government doing in dealing with the current crisis, and setting the economy on a sustainable course, the report says the national government was trying to implement a series of measures to stabilize the economy and in this way set the basis for a successful recovery. At the same time it was trying to deal with the inflation problem.

The report recommended that tax and spending reform should be formulated to accomplish economic, social, and political objectives rather than to hit a deficit target. The government will find it very difficult to achieve its budget deficit target even if it were to cut spending on social services like education, health, etc. and development expenditures drastically.

This is because such draconian cuts would likely throw the economy into a deep recession that would reduce tax revenues. If this were done, it would have serious repercussions for the countrys political stability and for its future. A better strategy would be to negotiate with multilateral agencies a programme that would allow the country to service its external debt, and gradually reduce its trade deficit until it reaches a more manageable level. During this time, the structure of spending should be analyzed, and a realistic development program should be devised.

While referring to the recent agreement with IMF, the report opine that that there was still latitude within the constrained policy environment to pursue more sustainable outcomes than those established by the limited horizons set by the IMF agreement. Further, says the report, the IMF programme does not correctly portray the source of the inflation pressures, or the constraints on economic development.

It says Pakistan needs to foster conditions that will reduce its dependence on imports. The growth and development path chosen will make a difference to the countrys capacity to import. However, the orthodox solution to a current account deficit will actually make it more difficult for Pakistan to reduce dependence on imports.

Giving its assessment of the current situation in Pakistan, the report says growth by itself is not an adequate goal given the needs of the country. Policy must be designed to pursue the goal of full employment, price stability, and equity. While Pakistans latest growth experience during 20042007 initially led to high growth, it has now become clear that this growth model failed to address the main problems afflicting the Pakistani economy.

A crisis of confidence in the government prevails that was unable to undertake strong economic measures, such as creating jobs, solving the power and water shortages, and relieving poverty. There is also an inability to keep inflation in check, a neglect of some important components of the supply side of the economy, perceived inability to address the increasing fiscal and current account deficits that are believed in many quarters to be undesirable, and inadequate response to security threats.

The report recommends Pakistan must continue to seek international funds, while negotiating for minimal conditionalities. It is highly likely that the IMF will continue to provide loans as needed, but with conditions that include fiscal restraint.

Unfortunately, this is a risky time for budget cuts, which would entail both economic and political repercussions. Significant budget cuts can only be made in areas of military spending, food and fuel subsidies, pensions, or development. For obvious reasons, cuts in all of these areas would be problematic.

The alternative is to raise taxes  again a highly problematic policy for a nation whose growth was already slowing even before the global crisis generated recession throughout much of the world. The economic and political situation had not improved in the recent weeks and the government has requested further assistance from the international community.

The report points to a reduction domestic currency debt service or domestic debt relief. Debt service alone will likely absorb more than half of all government revenue. Cutting the SBPs target interest rate would free more revenue than is likely to be obtained either by draconian cuts to other spending or by huge increases to tax rates.

In the context of the immediate urgency imposed by the foreign currency reserve crisis that most likely will last at least through 20092010, the ADB recognizes the reality that short-term policy options will be heavily conditioned by the IMF arrangement. However, the Bank believes that there could be some room to consider elements of a debt relief strategy within the IMF arrangement, as well as pursuing a range of fruitful strategies even though the IMF agreement has been signed.

For the medium-term, the report suggests a package of policies that includes reorient emphasis towards employment-creating policies and away from growth for-its-own-sake policies; reformulate tax and transfer policy; address the external deficit and the fall in international reserves in a manner that does not lead to domestic stagnation, unemployment, and poverty.

The government should seek debt relief and especially gradual elimination of foreign-currency-denominated debt. The government should diversify the countrys export basket with a view to promoting those sectors that will lead to sustainable economic development in the long run.

A well-designed export-led growth strategy can play an important role in the countrys development. The aim of this development strategy is not to direct domestic resources toward production for external consumers instead of using them to produce for domestic consumption. The objective of this programme is to reduce import reliance and limit the external debt drains on foreign reserves, the report says.

Reactions: Like Like:
2


----------



## FaisalAyaz

Neo said:


> *Pakistan, France will ink civil nuclear deal in December: FO​*
> ISLAMABAD: Pakistan and France would sign civil nuclear deal in December. In a weekly press briefing, foreign office spokesman said initial negotiations for nuclear deal will be completed in July and the deal would be signed in December.He said Pakistan wants early resumption of talks with India but no conditions being attached for talks.
> 
> Replying to a question regarding Kashmir issue, spokesman said there is no confusion or compromise made on Kashmir issue. He termed the statement of Indian external ministers statement about restoration of peace as positive and said Foreign Secretary Salman Bashir would meet Indian High Commissioner today in this connection. Pakistan is in touch with US for the resolution of Kashmir issue.
> 
> Foreign office spokesman said government is appealing against release of Hafiz Saeed and we will wait for verdict.



hey there, can someone tell me WHAT IS CIVIL NUCLEAR TECHNOLOGY? Thanks

Reactions: Like Like:
1


----------



## alirulesall123

FaisalAyaz said:


> hey there, can someone tell me WHAT IS CIVIL NUCLEAR TECHNOLOGY? Thanks



Civil Nuclear Techonology = Non-warfare nuclear techonology, such as nuclear generators used to generate electricity.


----------



## white_pawn

*Rs700 million pilferage discovered in Sui north​*By Kalbe Ali 
Thursday, 04 Jun, 2009 

ISLAMABAD: Rs700 million scam related to gas theft and oil smuggling has been unearthed by the Petroleum Ministry, but the government was unable to act against the culprits as there was no law to punish oil and gas stealing. 
The ministry is going to move to the Law Ministry seeking amendment in Penal code and seek a 15 year imprisonment and a five of up to Rs2000 for gas theft. Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain told media, here on Thursday.

Dr Hussain said that action has been initiated against the officials of Sui Northern Gas Pipeline Limited (SNGPL) who were involved in gas thefts involving losses of Rs694.55 million since January.

According to the report prepared by the SNGPL, the largest number of gas thefts cases occurred in the Lahore region where 4,279 consumers were involved in stealing Rs380 million worth of gas, followed by the Gujaranwala region where 247 consumers stole gas worth Rs100.97 million.

The other regions are Islamabad with thefts of gas worth Rs77.21 million, Peshawar Rs53.45 million, Faisalabad Rs41 million, Multan had gas thefts of Rs39.88 million and Abbotabad Rs1.71 million.

The proceeding on gas theft worth Rs450 million was also in progress, he added.

Dr Hussain said that many influential people were involved in gas theft and that the case cannot be registered against the consumers as there was no punishment in the PPC against gas thefts or tampering with oil and gas pipelines. 

He said that the inquiry was initiated after Unaccounted For Gas (UFG) increased from six to eight per cent causing a blow to the profitability of SNGPL.

The advisor said that petroleum Ministry had given target to SNGPL to reduce UFG to one per cent within next months that would help to increase the profit of gas utility.

Managing Director (MD) SNGPL Rasheed Lon said that during the third quarter of the current financial year, the UFG had increased from six to 8.5 per cent. The current campaign against the gas theft would also continue in future. 

The advisor also said that government had held 200 oil containers in Karachi involved in the smuggling of oil. One official of Hydrocarbon Development Institute of Pakistan (HDIP) involved in oil smuggling had been suspended, he said adding that the case has been sent to the custom intelligence for further investigation. 

DAWN.COM | Business | Rs700 million pilferage discovered in Sui north


----------



## white_pawn

*National Economic Council approves massive PSDP ​*By Mubarak Zeb Khan 
Friday, 05 Jun, 2009

ISLAMABAD: The National Economic Council approved an ambitious Rs621 billion Public Sector Development Programme and projected a GDP growth rate of 3.3 per cent in 2009-10.

The NEC meeting, presided over by Prime Minister Yousuf Raza Gilani, reviewed the economic performance during 2008-09, set targets and approved the Annual Development Plan for the next fiscal year.

An official told Dawn that the planning commission had proposed Rs395 billion as the federal PSDP, but the prime minister enhanced the amount to Rs421 billion to accommodate requests from various ministers.

An amount of Rs200 billion was approved for the provincial component of the development budget.

Besides the PSDP allocation, the NEC also approved Rs70 billion for the Benazir Income Support Programme, Rs50 billion for internally displaced persons and Rs40 billion for revival of industries. Agriculture is projected to grow by 3.8 per cent against 4.7 per cent in 2008-09, manufacturing sector by 1.8 per cent and services sector by 3.9 per cent. 

Briefing newsmen after the meeting, Information Minister Qamar Zaman Kaira and Deputy Chairman of the Planning Commission Sardar Aseff Ahmad Ali said that Rs209 billion (49 per cent of the federal PSDP) had been allocated for infrastructure, Rs190 billion (46 per cent) for social sector and Rs22 billion (5 per cent) for productive sector.

The American support and other pledges would be used for the social sector, particularly in the NWFP and Balochistan, Mr Kaira said, adding that the overall amount was expected to edge up following the realisation of funds from other sources.

We dont have any problem of resources. We have to make effective use of available resources, he said.

The minister said Balochistan would get Rs50 billion from the PSDP. He said that Rs21 billion of the current years lapsed amount would also be given to the province, besides an additional Rs9 billion for budgetary support.

During the next fiscal year, the National Highway Authority will get Rs45 billion, water sector Rs60 billion, health sector Rs26 billion and education and higher education Rs32 billion.

Sardar Aseff said the NEC approved the ADP and a five-year plan titled Investing in People. He said that the proposed plan had been sent to the provincial governments and it would also be presented in parliament for discussion, along with budget documents.

He said the meeting decided to establish 27 technical institutes of international standard in 27 districts at a cost of Rs7 billion and a Rs1 billion revolving fund for housing for the general public and government employees. The meeting also approved Rs4 billion for the Benazir tractor scheme, Rs27 billion for new grain storage facilities and the public-private partnership in the field of dairy products with government equity of Rs3.5 billion.

He said allocation had already been made for Bhasha dam and work on the dam would be taken up during the next fiscal year.

Sardar Aseff said various projects would be initiated to eliminate poverty, and not to alleviate it. He said a Pakistan Rapid Development Fund would be set up at the planning commission to give concept to governments for channelling money coming from outside, particularly the Friends of Democratic Pakistan.

Mr Kaira said the Balochistan government had expressed satisfaction over release of funds. He said special preference would be given to early release of funds for development projects in the province.

He said the NEC also approved the Thar coal project, which would also be used for generation of cheap electricity.

He said Sindh Chief Minister Syed Qaim Ali Shah had called for resumption of negotiations on the NFC award before or immediately after the budget.

Mr Kaira said Punjab Chief Minister Shahbaz Sharif was willing to show flexibility on the issue of the population factor, a major source for delay in the NFC award.

He said that Mr Sharif had also proposed indigenisation of resources, particularly enhancing the taxpayer base and prioritising development projects.

DAWN.COM | Business | National Economic Council approves massive PSDP


----------



## white_pawn

*Rs620bln development budget proposed ​*By Dawn Reporter 

ISLAMABAD: The total development budget of the country for next fiscal year has been recommended Rs620 billion to the National Economic Council, which includes Rs190 billion to develop Chashma III and Chashma IV nuclear energy plants.

The recommendations have been forwarded by the Annual Plans Coordination committee (APCC) on Tuesday for the NEC, scheduled to be held in Islamabad on June 4, the NEC would be chaired by the prime minister.

The APCC has recommended Rs262 billion for federal ministries in the Public Sector Development Program (PSDP) for 2009-10, the recommendations includes Rs38 billion for special areas including AJK, FATA and northern areas, Rs35 billion have been recommended for special programs and Rs60 billion have been recommended for corporations.

The APCC has recommended Rs200 billion for the development budget of provinces, and Rs25 billion for the earthquake reconstruction.

The APCC papers for the NEC said that the broad sectoral distribution of federal PSDP includes Rs195 billion for infrastructure, Rs164 billion for social sector, Rs18 billion for agriculture, industries, minerals, Rs12 billion for science and technology and Rs6 billion for environment.

APCC has proposed that Rs190 billion for the development of nuclear plants C-3 and C-4 to generate 600 megawatt electricity by 2016.

Another important aspect of the proposals is that the allocations for health sector has been suggested to be raised by 82 per cent to Rs26 billion in the fiscal 2009-10.

Major programs in the federal health sector includes Rs6 billion for EPI, Rs3 billion for mother and child health, Rs7 billon for primary health care. 

While the allocations for education and training has been increased by 60 per cent to Rs32 billion for the next fiscal year. 

The paper said that water sector allocations has been proposed at Rs58 billion, that accounts to almost 14 per cent of the total federal program. It said that 32 small and medium dams, eight in each province are being financed in the next fiscal year.

Rs12 billion have been proposed to complete the Mangla dam raising project, as a result 2.88 million acre feet additional water could be stored in the dam in next monsoon season.

Rs139 billion have been proposed for energy sector including electricity generation and conservation projects.

Transportation and communication sector has been allocated Rs70 billion in the APCC proposals and Rs12 billion for improvement of railways.

To save the agriculture produce modern grain storage facilities are proposed at Rs27 billion and Rs3.5 billion has been proposed for public private partnership in the field of dairy development.

For the continuation of housing program for poor and government officials that was initiated in the current fiscal year, the APCC has proposed RS1 billion to continue the project.

The APCC in its proposals to the NEC has said that Thar coal infrastructure will be developed in the next fiscal and the World Bank has pledged grant assistance for preparation of the project.

The government of Sindh is allowed to negotiate loans with the world bank, the paper said. 

The recommendations for the NEC said that to sharpen the skills of labour force Hunarmand Pakistan Programme would be launched to improve skills of the labour which will create demand for Pakistani workforce abroad also.

Pakistan had requested the IMF to increase the fiscal deficit limit from 3.4 per cent to 4.6 per cent to accommodate the additional amount of around Rs160 billion in the development budget for the next fiscal.

Deputy chairman planning commission Sardar Aseff Ahmed Ali said that increased allocations for development budget would help the government fight poverty.

This would be a support the government to fight terrorism reducing joblessness, he said. The National Economic Council is expected to consider enhance the powers of Central Development Working Party (CDWP) for sanctioning development schemes.

The CDWP, currently, is authorised to sanction projects up to Rs 500 million for the federal government and projects exceeding this limit are submitted for approval to the Executive Committee of the National Economic Council (ECNEC).

DAWN.COM | Business | Rs620bln worth of development projects proposed for budget


----------



## Neo

*Cut in development spending unsustainable, undesirable​*
KARACHI (June 05 2009): The State Bank of Pakistan (SBP), terming reduction in development spendings as unsustainable and undesirable, has stressed the need to allocate more funds for socio-economic uplift of the masses to address the root-causes of militancy.

SBP FOR SPENDING MORE ON SOCIO-ECONOMIC UPLIFT TO CURB MILITANCY: In its "Third Quarterly Report on the State of Economy" issued on Thursday, the SBP also linked substantial decrease in current expenditures to a "significant reduction in the size of government machinery," without which it said the achievement of desired results was not possible.

The central bank also eyes the government's expenditure budget to be "stretched" by the ongoing war on terror, and an unavoidable need to support an estimated million plus internally displaced persons (IDPs) fleeing the troubled areas.

Sharp cut in development spending would have detrimental impacts on country's human and physical infrastructure, the SBP said, adding that "A substantial reduction in current expenditures is not possible without significant reduction in the size of government machinery, due to inflexible interest payments and expenses under defence and civil administration."

Therefore in the medium term, the only viable way to achieve sustainable improvements in fiscal accounts is to raise the tax-to-GDP ratio through increasing the tax net, the SBP added, warning however that an increase in tax rate may encourage evasions.

"It is crucial that the government increase its spending on health, education and strengthening social safety nets in the context of the socio-economic conditions that support the extremist militants," the SBP said.

The growth in tax collections has already slowed, and may decline further in Q4-FY09. Also, non-tax revenue receipts, which had hitherto supported overall revenue growth, are also expected to weaken in the same quarter, it added. The report pointed out that anticipated weaker performance of revenues, and increase in expenditures both point to the risk of slippage in the fiscal deficit target, and a contingent increase in financing requirements.

Similarly, resurgence in international commodity prices poses risks to the assessment of a continued sharp deceleration in inflation in the months ahead. In particular, a rise in international oil prices would have adverse consequences for domestic inflation as well as the external account balance, it added.

On the domestic front, poor law & order and security situation, and political noise have led to net outflows of portfolio investment. While, Pakistan's ability to access international financial market is constrained, any shortfall in external inflows would add to pressures on monetary policy.

The report pointed out that a practical solution is to enhance productivity in the medium term. However, it cannot be achieved without providing basic education and health facilities to masses, as well as efficient physical infrastructure including credible low cost energy, transportation and postal systems.

The country can achieve all these despite huge investment requirements. In fact, these areas indicate to implement second generation reforms to improve governance, strengthening institutions and reform legal as well as regulatory system, it added.

The report pointed out that sustainable improvement can be achieved only through increasing exports by product and market diversification with gains in productivity, adding that these are not easy tasks.

Increase in market diversification requires quality products with a good name of the country and congenial environment to buyers of Pakistani products to visit production venues and observe the processes. A large number of buyers are required to do this to satisfy their developed countries' clients about safety standards and environmental as well as social issues. Similarly, product diversification needs investment, expertise, spending in research and development.


----------



## Neo

*Economic performance weak in fiscal year 2009​* 
KARACHI (June 05 2009): Pakistan's economy continued to show macroeconomic stability in the third quarter of the current 2008-09 fiscal year (FY09), however it became clear that economic performance of the country would remain weak in current fiscal year.

According to the Third Quarterly Report of the State Bank of Pakistan on the state of the economy, earlier months developments such as high inflation, deterioration in external account and declining industrial output have made it clear that lower growth target for the FY09 would be difficult to achieve and the country's GDP growth would be 2-3 percent.

However, the report noted with caution: "Despite the improvement in macroeconomic indicators is very encouraging, the economy is not out of the woods yet. Major macroeconomic indicators show underlying weaknesses which, if not addressed, could hamper economic recovery."

Macroeconomic stability, in third quarter, is largely attributed to the macroeconomic reforms initiated by the government and the economy benefited from a sharp decline in international commodity prices and other favourable developments. Inflation began to decline, the current account deficit narrowed substantially with a corresponding stability in the exchange rate, and fiscal discipline was maintained with the fiscal deficit being reported to be 3.1 percent of GDP for July-March FY09.

The report said that recent easing of inflationary pressures is indeed encouraging as the headline inflation - measured by consumer price index (CPI) - dropped to 17.2 percent on year-on-year (YoY) basis in April 2009 from its peak of 25.3 percent YoY in August 2008.

The report pointed out that major economic targets such as GDP growth, inflation, workers remittances and exports would not be achieved and inflation would be 20.5-21.5 percent in FY09 against the target of 11 percent.

While, the country's goods exports would be 18.5-19.5 billion dollars against the target of 22.9 billion dollars and workers remittances 7.5 billion dollars, it added. A slowdown in economic activities as well as poor law & order situation also impacted the performance of services sector during FY09.

In contrast with stellar growth in recent years, services sector is expected to record below target growth in FY09. The report said that trade deficit recorded a break from rising trend of the past six years, declining by 15.9 percent YoY during July-April FY09.

This was principally led by a 9.8 percent YoY fall in imports that more than offset a small 3.0 percent YoY fall in exports during this period. A larger share of the improvement in trade deficit was observed during January-April FY09; due to a sharp 35.1 percent YoY fall in imports that outpaced a yet large 19.2 percent YoY fall in exports in this period, it added.

The report said that in order to support industry and particularly the export-oriented sectors, which were pressured by the impact of the global recession, the SBP introduced measures such as easing access to concessional financing schemes, and lengthening maturities.

The central bank also injected appropriate liquidity to meet banking system's increased demands for commodity operations and settlement of circular debt. However, by April 2009, broad money (M2) growth was still quite weak, at 1.9 percent year-to-date, down sharply from 8.4 percent in the corresponding period last year, reflecting continued deceleration in domestic demand.

"As a result of this, the SBP projections suggest that deceleration in inflation will be much sharper in the next few months. This is also evident from the successive fall in the core inflation during March and April 2009," it added. It said this has encouraged the SBP to gradually shift its policy bias towards supporting growth in the economy.

Thus, as other macroeconomic indicators improved further, this allowed the central bank a 100 bps reduction in the policy rate, bringing it to 14 percent effective April 21, 2009. The report said that the record wheat and rice harvests together with the likelihood of good production in minor crops and of fodder increase expectations that growth in the crops sub-sector of agriculture will exceed the FY09 annual target.

"A reasonable performance from the livestock sector, supporting all this, will help take the overall agri-sector growth close to, or over, the annual target," it added. However, it noted with concern that growth in large scale manufacturing (LSM) has been negative for the 10th consecutive month in March 2009, the longest period in which production continued to shrink.

LSM growth dropped by 7.6 percent during July-March FY09 compared with a 5.0 percent rise in the corresponding period of FY08. This is the major drag on the prospects of improving real GDP growth, it added. In addition, the report said the international inflows under financial and capital accounts are relatively lower compared with the preceding years, causing a rise in overall external account deficit.

A fall in financial inflows is the result of combined impact of both external and domestic factors, the report said. "While, Pakistan's ability to access international financial market is constrained, any shortfall in external inflows would add to pressures on monetary policy," the report added.

"In short, the limited gains in key macroeconomic indicators should not lead to complacency as the quality of these improvement and challenges to economy are some factors of disquiet," it pointed out. The report also stressed upon increasing exports by product and market diversification with gains in productivity. It underscored the need to implement second generation reforms to improve governance, strengthening institutions and reforming legal as well as regulatory system.


----------



## Neo

*Private sector credit growth falls to six-year low​* 
KARACHI (June 05 2009): Private sector credit growth has declined to a six-year low of 3 percent by the end of April 09 due to low demand for working capital ahead of slow economic activities and high interest rate, said SBP Third Quarterly Report. The report pointed out that slowdown in private sector credit which started in October 2008, due to temporary liquidity crunch with banks, persisted in the following months of FY09 as well.

Resultantly, the YoY growth in private sector credit reached six-year low of 3.0 percent by the end of April 2009. "In absolute terms, the increase in private sector credit was only Rs 48.6 billion in July-April FY09 compared with remarkable surge of Rs 371.3 billion in the corresponding period of last year," it added. The deceleration in credit growth slightly increased as a few Independent Power Projects (IPPs) settled some of their loan obligations with banks.

Nonetheless, even after adjusting for this one-off impact for bank finance, the credit off-take for July-March FY09 period remained significantly low at Rs 105.8 billion compared with Rs 332.0 billion in the same period of last year, the report said. The slowdown in private sector credit was mainly explained by exceptionally low demand for working capital.

This reflects a number of developments, such as slowdown in domestic economic activities on account of acute power shortages, a sharp fall in raw material prices in the international and domestic markets, rising interest cost and contraction in trade volume partly due to the global recession etc.

The report said that demand for fixed investment loans in contrast remained quite resilient. Adding, "growth in long-term loans was because a few industries such as power, fertiliser and construction, utilised their credit lines committed with banks in the last two years".

This reliance is likely to persist as the commencement of new private sector projects particularly in cement, fertiliser, power and sugar industries would continue to sustain the demand for long-term loans in the coming months.

"The major deceleration has registered in textile sector, as excluding this, the growth in manufacturing sector increased to 12.6 percent in July-March FY09, though still lower than the same period of the previous year," the report said. Besides textile, refinery, basic metal and domestic appliance also dragged down the demand for bank loans in the manufacturing sector, it added.

The slowdown in textile sub-sector was visible in both working capital loans and fixed investment loans, only advances extended under Export Finance Scheme (EFS) registered a significant growth. However, the strong impact of EFS was more than diluted by a sharp drop in import finance and other than EFS loans to textile sector.

Within textile sector, most of the slowdown in running finance requirements emanates from the spinning sector. Monthly trend reveals that the credit-off take in this sector was strong in the initial few months of FY09 partly a reflection of commodity financing for cotton availed by the private sector. However, in the following months of FY09, the loans to the spinning industry could not maintain the growth momentum and dropped drastically.

Though a part of the fall in textile loans was anticipated, in view of continued global slowdown and the resulting drop in exports, the huge stock of inventories on account of delays in export order settlement further aggravated the situation. Furthermore, a few spinning industries have closed down their production operations in the recent months on account of acute power shortages, structural impediments in the industry and rising inability to service bank obligations.


----------



## Neo

*LSM growth negative for 10 months in a row​* 
KARACHI (June 05 2009): Weakness in domestic demand, power shortages and deterioration in law & order situation have shrunk Large Scale Manufacturing (LSM) growth, said SBP's Third Quarterly Report. The report pointed out that growth in LSM has been negative for the 10th consecutive month in March 2009, the longest period in which production continued to shrink.

LSM growth has dropped by 7.6 percent during July-March FY09 compared with a 5.0 percent rise in the corresponding period of FY08. "Decline in external demand and sharply lower fund flows amid global recession probably contributed to slowdown in domestic manufacturing activities, while on the domestic side Weakness in domestic demand, worsening power shortages, structural problems and poor law & order situation are some important factors responsible for the decline in LSM production," the report said.

Consumer durables industry witnessed drastic decline in production during July-March FY09. In particular, jeeps & cars sub-sector is the worst hit by the sluggish demand due to continued increase in prices, rise in cost of financing and lower availability of institutional financing given the risk averse behaviour of banks amid increasing NPLs under consumer financing and liquidity problems.

The report pointed out that production decline in cooking oil & ghee industry is due to the combined impact of weaker domestic demand as well as uncertain international prices of key inputs. Similarly, textile industry suffered due to domestic as well as external shocks. Power outages, increase in utility charges and higher financial cost were some domestic factors responsible for a drag in textile sector, weak external demand amid global recession hurt production in this export driven sector.


----------



## Neo

*Country to miss CPI inflation target​* 
KARACHI (June 05 2009): State Bank of Pakistan (SBP) has said that resurgence in international commodity prices poses risks to the assessment of a continued sharp decline in inflation in the months ahead and average CPI inflation would be over the target by the end of FY09.

According to SBP third quarterly report, the relative ease in inflationary pressures that began in Q2-FY09 continued into Q3-FY09 with all price indices exhibiting a declining trend, however the country would miss its CPI inflation target.

The report said that a rise in international oil prices would have adverse consequences for domestic inflation as well as the external account balance and projected that in FY09 average CPI inflation is expected to stay between 20.5 percent and 21.5 percent as against the target of 11 percent.

The report said that recent easing of inflationary pressures is indeed encouraging as the headline inflation - measured by consumer price index (CPI) - dropped to 17.2 percent on year-on-year (YoY) basis in April 2009 from its peak of 25.3 percent YoY in August 2008.

In particular, a sharp downtrend in food inflation is a welcome development as this component of CPI affects low income groups the most. CPI food inflation fell from its peak of 34.1 percent YoY during August 2008 to 17.0 percent in April 2009.

The recent downtrend in CPI inflation (YoY) was mainly attributed to declining domestic food inflation, principally a reflection of fall in international prices and smooth domestic supply of key staples. Signs of easing of inflationary pressures are also reflected by a decline in persistent component of inflation, which is measured by core inflation, the report said.

The non-food non-energy (NFNE) trimmed 20 percent meaning both the core inflation measures have shown signs of relative ease during April 2009. It said the downtrend in inflation owes to both, favourable international and domestic developments, as well as a deceleration in domestic demand.

The latter, in particular, reflects the monetary tightening by the State Bank, as well as the complementary improvement in fiscal discipline, especially after November 2008. It is worth noting that the acceleration in the fall of inflation is becoming visible only after the magnetisation of the fiscal deficit was halted, the report added.

Going forward CPI non-food inflation is also expected to ease as a result of lagged impact of tight monetary stance, declining international commodity prices, subdued inflationary expectations amid weaker domestic demand and absence of second-round effects due to a relative slowdown in food inflation.

In line with CPI inflation (YoY) other price indices including WPI and SPI also witnessed a downtrend during Q3-FY09. While, inflation is still high it is expected that the downtrend in inflation will gather pace in the next few months. Weak inflation expectations together with evident decline in domestic demand resulted in an ease of the monetary policy in April 2009, the report said.


----------



## Neo

*Fiscal year 2009 agriculture growth would be reasonably good​* 
KARACHI (June 05 2009): The agriculture growth would be reasonably better during the FY09 due to the record wheat and rice harvests together with the likelihood of good production in minor crops, said the SBP's Third Quarterly Report. The report pointed out that reasonable performance from the livestock sector, supporting all this, will help take the overall agri-sector growth close to, or over, the annual target.

"Robust growth by major crops, despite lower water availability and decline in fertiliser off-take, is principally a reflection of anticipated higher prices, and good luck in terms of favourable weather," the report said. The good performance by major crops appears to be more impressive given a substantial decline in sugarcane harvest during FY09.

Similarly, growth in production of some pulses, oilseeds and horticulture crops indicates a better performance by minor crops during FY09. More importantly, growth in livestock benefited from higher supply of fodder, following the extended monsoon and winter rains as well as absence of any major incident of diseases during FY09.

All these developments suggest that FY09 agriculture growth would be reasonably good and that could have been even better if sufficient inputs - irrigation water, fertilisers and certified seeds - could have been used. Farmers' ability to increase investment in quality inputs may be reflected partially by slower than anticipated growth in agri credit.

The trends so far suggest that the annual target of Rs 250 billion would be missed, for the first time since FY05. This would be due to both demand and supply factors. However, for the next season, credit disbursement is expected to improve. For example, relatively stable fertiliser prices would help restore demand for agri credit for inputs. Similarly, an ease in monetary policy and the SBP measures to address liquidity shortages in the banking system would help improve supply of agri credit in the months ahead.

Reactions: Like Like:
1


----------



## Neo

*PM Gilani urges US to write-off debt​*
ISLAMABAD (June 05, 2009): Prime Minister Syed Yousuf Raza Gilani urged the United States on Friday to write-off the country's debt, saying the war against militants and the displacement of tens of thousands of people had compounded economic woes.

Pakistan owed the United States $1.55 billion as of March 31, 2008, government figures show.

Prime Minister Gilani told US special envoy Richard Holbrooke that the US administration should expedite supply of military hardware to Pakistan and work with Congress to substantially increase economic assistance.

"(Gilani) has called upon the US to write off its debt to help the government of Pakistan overcome the present economic difficulties accentuated by the war on terror, growing crisis of IDPs and the negative impact of the global recession," according to a statement issued by Gilani's office.

Holbrooke had earlier announced that the United States aimed to give Pakistan $200 million, in addition to $110 million already pledged, to help it deal with the problems of the internally displaced persons (IDPs).

He said the United States would look into Pakistan's request for the debt write-off and measures were being taken to accelerate the pace of military supplies to Pakistan, the statement said.

Gilani acknowledged US help for dislocated people and hoped that the European and Muslim countries would also come forward with assistance.

Pakistan is vital for US efforts to defeat al Qaeda and Taliban in neighbouring Afghanistan.

Reactions: Like Like:
1


----------



## Neo

*Government seeks help to revive closed 135 megawatts Sepcol​* 
ISLAMABAD (June 05 2009): Ministry of Finance (MoF) is reportedly using its influence to revive the closed 135 MW Southern Electric Power Company Limited (Sepcol), which was shut down due to financial crisis and dispute with Wapda, official sources told Business Recorder.

Arshad Lodhi, Assistant Economic Advisor, Ministry of Finance in a self-contained note to Rashid Mirza, Head of Private Energy Division Corporate & Investment Banking Group, National Bank of Pakistan, Karachi, has recommended the revival of the Sepcol in wake of the current severe power shortage being faced by the country.

GoP exposure in Sepcol project is to the tune of $52.458 million comprising: (i) Long Term Credit Fund (LTCF) subordinated facility - principal outstanding $38.211million interest outstanding $5.513 million and monitoring fee outstanding $0.038 million; and (ii) Coface Facility of $8.706 million rescheduled/ restructured under Paris Club arrangements.

Giving the background, sources maintained that Sepcol was incorporated in Pakistan on December 20, 1994. The complex consisted five medium speed diesel engine generators each having 23.4 MW gross rating of 117 MW with net capacity of 112.5 MW. Subsequently, to improve the plant output and efficiency, the company installed 6th diesel engine with a capacity of 18 MW in 2007 that led the gross capacity to 135 MW with net capacity of 119.5 MW.

The operational performance of the company has been below expectations and the cash flows of the company have therefore, been significantly affected. Despite the financial disputes with Wapda, the company managed to remain current on its LTCF debt till April 25, 2006. However, it defaulted on LTCF debt obligations in October 25, 2006. Subsequently, Sepcol initialled LTCF debt restructuring negotiations with NBP.

The main reasons for the default were: (i) High level of Liquidated Damages (LDs) during the period 2005 - 2006 mainly due to engine breakdowns which resulted in non-availability of the plant inline with the PPA; (ii) Crash Maintenance programme (CMP) on the recommendations of engine manufacturer for major overhauling of all the five engines at a cost of $3.0 million; (iii) fuel losses incurred on gross generation due to increased auxiliary generation and increasing fuel prices; (iv) payment delays by Wapda against Capacity Purchase Price (CPP) invoices; and (v) inability of the company to arrange additional working capital lines of approximately $4 million.

The sources said rescheduling of the three LTCF instalments falling due on October 25, 2006, April 25, 2007 and October 25, 2007 had to be undertaken along with the interest thereon. The total amounts restructured worked out to be $10.614 million. The restructuring was approved by the World Bank, energy committee and NBP Board.

The situation continued to deteriorate and by mid 2007, the Working Capital Line (WCL) of Rs 1265 million was almost fully utilised and with substantive increase in fuel prices, the company became dependent upon advance from Wapda for purchase of its fuel requirements.

Wapda supported the project by allowing advance payment of Energy Purchase Price (EPP) to Sepcol since 2006 without an obligation under the Power Purchase Agreement (PPA).

The advance payment continued to be adjusted from the monthly EPP invoice of Sepcol at the end of each month. This arrangement continued till January 31, 2008. Wapda discontinued the advance payment for fuel on February 2008. With the hike in fuel price, Sepcol let with no cash available to finance its fuel requirements, which resulted in the complete shutdown of the complex on February 15, 2008. Subsequently, Wapda served a default notice to the company for failure to operate the plant.

Due to non availability of the plant, Wapda imposed LDs, which were contended by the company. The company filed suit against Wapda and also issued notice for arbitration. During the dispute with Wapda, the company approached various local banks for additional working capital lines in order to meet its fuel purchase requirement.

However, the banks have yet to entertain the request as the plant is closed and disputes with Wapda are continuing. The sources said the company also defaulted on its payment obligation due to LTCF on April 25, 2008, October 25, 2008 and April 25, 2009 amounting to about $15 million. In October 2008, after the lapse of eight months, Wapda started making advance payments to the company for the purchase of fuel required to run the plant and the court/arbitration proceeding were put in abeyance. However, the plant was shutdown once again in November 2008 as the sponsors/ management remained unable to (i) resolve the disputes with Wapda and (ii) raise funds from other sources to make the plant operative as a going concern.

When the plant shutdown in February 2008, the company had operated the plant every 18th day to maintain its entitlement for the CPP payment as per the terms of the PPA. However, Wapda has released no payments since November 2008 and the company has reached at a point where it may no longer be possible for it to operate the plant on every 18th day.

According to the Assistant Economic Advisor, financial crunch at this point of time is so severe that the plant preservation is at stake. Further, the company does not have funds to renew plant insurances and have requested the lenders to make payment of the insurance premium on its behalf. In case the insurance premium payment is not made before June 9, 2009 the plant would become uninsured, thus putting a national asset in jeopardy.

Reactions: Like Like:
1


----------



## Neo

*Services sector may record below target growth​* 
KARACHI (June 05 2009): Slowdown in economic activities as well as poor law & order situation has affected the performance of services sector, which is expected to record below target growth in FY09.

State Bank of Pakistan's third quarterly report released Thursday says that overall domestic economic slowdown was witnessed in FY09, depicted decline in large scale manufacturing, decrease in domestic demand and decline in exports as well as imports are factors impeding growth prospects in services, it added. While, finance & insurance sub-sectors also presents a mixed performance.

Outlook for trading activities is on the down side as the two major components of value addition in trading ie manufacturing and imports exhibit slowdown in FY09. The report said that profits of commercial banks have dropped substantially during the first three quarters of FY09. In contrast, SBP profits witnessed a substantial increase during this period.

Moreover, other financial institutions; including, mutual funds, modarba companies and foreign exchange companies, whose earnings contain higher risk premia and are prone to fluctuation in rupee parity, were negatively impacted by capital market instability in H1-FY09 as well as high National Savings Schemes returns, the report said. Transportation and communication are expected to benefit from relatively lower international oil prices and consolidation of revenues, in addition storage activities exhibit sharp increase in FY09.

Reactions: Like Like:
1


----------



## Neo

*Salman predicts a deficit budget for 2009-10​* 
LAHORE (June 05 2009): Former Federal finance minister and leading economist Dr Salman Shah has predicted a deficit budget for 2009-10 due to failure in achieving revenue targets set for the 2008-09 fiscal year. Addressing a pre-budget seminar, organised by the Pakistan Muslim League-Q, here on Thursday, Dr Salman Shah maintained that five percent deficit budget for the 2009-10 fiscal year would be presented.

Currently, the growth rate of the national economy was only 2.5 percent as compared to five percent last year, he said. He said that the main reason of this decline was surge in interest rate on foreign loans, besides nine percent cut in production because of following policies of the International Monetary Fund (IMF).

He further said the government was engaged in borrowing from banks and the government would have to pay Rs 650 billion in 2009-10 fiscal year on payments of internal and external loans. If the government did not receive foreign aid ahead of the budget, he also feared increase in ratio of unemployment and price hike.

He said the development sector would badly suffer, if foreign aid were not received. Dr Salman Shah further said expenditures on internal security matters were increasing. He called for reviewing the small and medium enterprise (SMEs) sector to help stabilise the economy.

He said during the current year, there was 25 percent price spiral, while difficult time was ahead for the people, as the government would have to further increase power tariff. He also said the Punjab government also failed in achieving the targets set for revenue growth for the current fiscal.

"If the oil prices would increase in the international market in time ahead, there might by economic crisis in the country, as it would result in energy crisis," he added. Nevertheless, increase in oil prices in the international market would enhance production cost of thermal power generation, he opined.

The former advisor to prime minister on economic affairs also stressed the need for construction of Kalabagh Dam to overcome power crisis. The construction of this vital project must be initiated immediately after developing consensus of all the provinces on this project, he added. He said the previous governments also made efforts to develop consensus on Kalabagh Dam. Now when all the parties were in the government, attention should be paid to achieve consensus for Kalabagh Dam, which could be completed in just five years.

He said the government would have to focus on construction of more and more dams, as it would put an end to dependence on oil apart from ensuring food security. He said the government should focus on hydel power generation, as cheap electricity would not only help stabilise the economy, but also create job opportunities.

He further said that private power companies were working below their production capacity due to failure in meeting their running expenditures. Currently, he said there was capability in the country to produce 20,000 MW of electricity. Speaking next, opposition leader in the Punjab Assembly Chaudhry Zaheeruddin said that Kalabagh Dam was a national project, which would ensure progress and prosperity in the country.

Reactions: Like Like:
1


----------



## Neo

*Economic Outlook: Alongside is the Overview of the State Bank of Pakistan's Third Quarterly Report for Fiscal Year 2009​*
*TEXT *(June 05 2009): 1.1 Overview: As the year progressed, it became clearer that economic performance of the country would remain weak in FY09. A moderation in economic growth was expected and embedded in a lower growth target for FY09, but developments during the first four months of the fiscal year made it obvious that even this lower growth target would be difficult to achieve.

These developments included stubbornly high inflation, massive deterioration in external accounts, and declining industrial output. Nonetheless, by the end of Q2-FY09 some semblance of macroeconomic stability was beginning to emerge, as the government focused on restoring macroeconomic stability, and entered into a Stand By Arrangement (SBA) with the IMF in support of its reform program.

This improvement continued in the third quarter of FY09, as these reforms took hold and the economy benefited from a sharp decline in international commodity prices and other favourable developments. Inflation began to decline, the current account deficit narrowed substantially with a corresponding stability in the exchange rate, and fiscal discipline was maintained with the fiscal deficit being reported to be 3.1 percent of GDP for July-March FY09.

While this improvement in macroeconomic indicators is very encouraging, the economy is not out of the woods yet. Major macroeconomic indicators show underlying weaknesses which, if not addressed, could hamper economic recovery. The record wheat and rice harvests together with the likelihood of good production in minor crops and of fodder backs expectations that growth in the crops sub-sector of agriculture will exceed the FY09 annual target.

A reasonable performance from the livestock sector, supporting all this, will help take the overall agri-sector growth close to, or over, the annual target. Also, notwithstanding a slowdown in the trade, and the transportation & communication sub-sectors, the services sector is also expected to perform well. However, the substantial negative growth in large scale manufacturing (LSM) (see Table 1.1), remains a major drag on prospects of improving real GDP growth.

While the decline in LSM growth is a reflection of weaker domestic and external demand, other domestic factors have a significant contribution as well. These include infrastructural bottlenecks (eg power and gas shortages), increasing risk averseness of banks (this has lowered access, and increased cost of credit, for both businesses and consumers), as well as persistent inflationary pressures. In this context, the recent easing of inflationary pressures is indeed encouraging.

The headline inflation - measured by consumer price index (CPI) - dropped to 17.2 percent on year-on-year (YoY) basis in April 2009 from its peak of 25.3 percent YoY in August 2008. In particular, a sharp downtrend in food inflation is a welcome development as this component of CPI affects low income groups the most.

CPI food inflation fell from its peak of 34.1 percent YoY during August 2008 to 17.0 percent in April 2009. The downtrend in inflation owes to both, favourable international and domestic developments, as well as a deceleration in domestic demand. The latter, in particular, reflects the monetary tightening by the central bank, as well as the complementary improvement in fiscal discipline, especially post November 2008.

It is worth noting that the acceleration in the fall of inflation is becoming visible only after the magnetisation of the fiscal deficit was halted. The weakness in demand pressures amid fiscal prudence, lagged impact of relatively lower international commodity prices, bumper wheat and rice harvests as well as better supply management of key staples have augmented the gains of tight monetary policy.

While domestic demand had been visibly easing since November 2008, the pace of the improvement was initially unclear, and there were lingering risks on the external accounts as well as in the relative resilience in core inflation. These risks precluded an immediate easing of monetary policy, and accordingly the January 2009 monetary policy statement kept the policy rate unchanged.

Notwithstanding this, the measures introduced in the wake of the liquidity shock in October 2008 meant that KIBOR eased, particularly due to non-enforcement of the implicit interest rate corridor by SBP, which effectively diluted the impact of the policy stance on the already-stressed domestic economy.

To support industry and particularly the export-oriented sectors, that were pressured by the impact of the global recession, measures were introduced such as; easing access to concessional financing schemes, and lengthening maturities. The central bank also injected appropriate liquidity to meet banking system's increased demands for commodity operations and settlement of circular debt.

However, by April 2009, broad money (M2) growth was still quite weak, at 1.9 percent year-to-date, down sharply from 8.4 percent in the corresponding period last year, reflecting continued deceleration in domestic demand. As a result of this, SBP projections suggest that deceleration in inflation will be much sharper in the next few months. This is also evident from the successive fall in the core inflation during March and April 2009.

The projected improvement encouraged SBP to gradually shift its policy bias towards supporting growth in the economy. Thus, as other macroeconomic indicators improved further, this allowed the central bank a 100 bps reduction in the policy rate, bringing it to 14 percent effective from April 21, 2009.

It has been argued that the substantial improvement in macroeconomic indicators, should have allowed for a sharper reduction in the policy rate; particularly when the growth indicators show a substantial slowdown in the economy, and inflation is projected to fall sharply.

Indeed, the market had already envisaged the possible cut in the policy rate, ahead of the April reduction, observing low inflationary pressures in the economy, the expectation is evident from the downtrend in the market rates since January 2009. Such a measure would have been possible, were it not for the risks attached to the current macroeconomic situation.

These risks include anticipated shortfalls in fiscal receipts, the uncertain international environment which adds uncertainty to Pakistan's ability to finance even a narrower current account deficit, as well as the fact that the accelerated decline in inflation is, so far, more an expectation than a fact.

The fiscal deficit for July-March FY09 is reported at 3.1 percent of GDP, which is consistent with the annual target, but there are significant issues with both, the sustainability of this trend over the full year, and the quality of this reduction in the deficit.

(1) The growth in tax collections has already slowed, and may decline further in Q4-FY09. Also, non-tax revenue receipts, which had hitherto supported overall revenue growth, are also expected to weaken in the same quarter (eg rising international prices are expected to squeeze receipts of petroleum development levy).

(2) The government's expenditure budget will also be stretched by the ongoing war on terror, the need to support an estimated more than a million internally displaced persons (IDPs) fleeing the conflict areas.

(3) It is important to stress the "improvement" in the fiscal picture as a result of the sharp cut on development spending is neither sustainable nor desirable. Particularly in the context of the socio-economic conditions that support the extremist militants, it is crucial that the government increase its spending on health, education, and strengthening social safety nets.

The anticipated weaker performance of revenues, and increase in expenditures both point to the risk of slippage in the fiscal deficit target, and a contingent increase in financing requirements. The pertinent point here is that the lower demand for private sector credit and increased risk averseness of banks during the year so far, allowed the government to increase borrowings from commercial banks without putting upward pressure on interest rates.

However, recent developments suggest that this room is fast eroding, and significant additional government demand would increase the risk of crowding out the private sector. Similarly, resurgence in international commodity prices poses risks to the assessment of a continued sharp deceleration in inflation in the months ahead.

In particular, a rise in international oil prices would have adverse consequences for domestic inflation as well as the external account balance. In recent months, current account deficit witnessed improvement relative to the corresponding period, for the first time in five years.

This is mainly attributed to a substantial fall in import growth, and sustained strong growth in remittances that continued during December-April FY09. However, flows under financial and capital accounts are relatively lower compared with the preceding years, causing a rise in overall external account deficit.

A fall in financial inflows is the result of combined impact of both external and domestic factors. Financial flows towards emerging economies have generally significantly shrank amid financial turmoil and recession. On the domestic front, poor law & order and security situation, and political noise have led to net outflows of portfolio investment.

While, Pakistan's ability to access international financial market is constrained, any shortfall in external inflows would add to pressures on monetary policy. In short, the limited gains in key macroeconomic indicators should not lead to complacency as the quality of these improvement and challenges to economy are some factors of disquiet.

For example, a decline in fiscal deficit would have been a welcome development to the extent achieved through lower growth in current spending (see Table 1.2). The reduction in development expenditure is not desirable, as it would have detrimental impacts on country's human and physical infrastructure. In the medium term, the only viable way to achieve sustainable improvements in fiscal accounts is to raise the tax-to-GDP ratio through increasing the tax net.

This is because a substantial reduction in current expenditures is not possible without significant reduction in the size of government machinery, due to inflexible interest payments and expenses under defence and civil administration. Similarly, an increase in tax rate may probably encourage tax evasion.

Another area of concern is the gradual improvement in current account deficit, which is principally driven by a decline in import growth. It should be kept in mind that there exists quite uncertainty over the pace of growth in workers' remittances. In addition, country would also have higher debt servicing in coming years.

These two factors reinforce the common view that sustainable improvement can be achieved only through increasing exports by product and market diversification with gains in productivity. These are not easy tasks. Increase in market diversification requires quality products with a good name of the country and congenial environment to buyers of Pakistani products to visit production venues and observe the processes. A large number of buyers required to do this to satisfy their developed countries clients about safety standards and environmental as well as social issues.

TABLE 1.1: SELECTED ECONOMIC INDICATORS
================================================================== FY07 FY08 FY09 ================================================================== Growth rate (percent) ------------------------------------------------------------------ LSM Jul-Mar 9.1 5.0 -7.7 Exports (fob) Jul-Apr 2.9 9.9 -3.0 Imports (cif) Jul-Apr 8.9 28.3 -9.8 Tax revenue (FBR) Jul-Apr 20.0 16.3 17.7 CPI (12 month MA) Apr 7.8 9.8 22.0 Private sector credit Jul-Apr 13.0 15.0 1.7 Money supply (M2) Jul-Apr 11.8 8.4 1.9 ------------------------------------------------------------------ billion US dollars ------------------------------------------------------------------ Total liquid reserves1 end-April 13.7 12.4 11.2 Home remittances Jul-Apr 4.5 5.3 6.4 Net foreign investment Jul-Aprr 5.9 3.9 2.2 ------------------------------------------------------------------ percent of GDP2 ------------------------------------------------------------------ Fiscal deficit Jul-Mar 3.1 4.7 3.1 Trade deficit Jul-Mar 5.3 6.6 5.7 Current a/c deficit Jul-Mar 4.3 5.7 4.6 ==================================================================

NOTE:

1 With SBP & commercial banks.

2 Based on full-year GDP in the denominator. For FY09 estimated full-year GDP.

TABLE 1.2: PROJECTIONS OF MAJOR ECONOMIC INDICATORS
==================================================================== FY08 FY09 ==================================================================== Annual plan targets Projections ==================================================================== growth rates in percent -------------------------------------------------------------------- GDP 5.8 5.5 2.0 - 3.0 Average CPI Inflation 12 11 20.5 - 21.5 Monetary assets (M2) 15.3 14 8.0 - 10.0 -------------------------------------------------------------------- billion US dollars -------------------------------------------------------------------- Workers' remittances 6.5 7.7 7.5 Exports (fob-BoP data) 20.1 22.9 18.5 - 19.5 Imports (fob-BoP data) 35.4 37.2 30.5 - 31.5 -------------------------------------------------------------------- percent of GDP -------------------------------------------------------------------- Fiscal deficit 7.4 4.7 4.0 - 4.5 Current account deficit 8.4 7.2 5.0 - 5.5 ====================================================================
NOTE: Targets of fiscal and current account deficit to GDP ratios are based on nominal GDP in the Budget document for FY09, while their projections are based on projected (higher) nominal GDP for the year.

Similarly, product diversification needs investment, expertise, spending in research and development. Finally, a practical solution is to enhance productivity in the medium term. However, it cannot be achieved without providing basic education and health facilities to masses, as well as efficient physical infrastructure including credible low cost energy, transportation and postal systems.

The country can achieve all these despite huge investment requirements. In fact, these areas indicate to implement second generation reforms to improve governance, strengthening institutions and reform legal as well as regulatory system.

*1.2 EXECUTIVE SUMMARY*

*
1.2.1 AGRICULTURE SECTOR* Robust growth by major crops, despite lower water availability and decline in fertiliser off-take, is principally a reflection of anticipated higher prices, and good luck in terms of favourable weather. The good performance by major crops appears to be more impressive given a substantial decline in sugarcane harvest during FY09.

Similarly, growth in production of some pulses, oilseeds and horticulture crops indicates a better performance by minor crops during FY09. More importantly, growth in livestock benefited from higher supply of fodder, following the extended monsoon and winter rains as well as absence of any major incident of diseases during FY09.

All these developments suggest that FY09 agriculture growth would be reasonably good and that could have been even better if sufficient inputs - irrigation water, fertilisers and certified seeds - could have been used. Farmers' ability to increase investment in quality inputs may be reflected partially by slower than anticipated growth in agri-credit.

The trends so far suggest that the annual target of Rs 250 billion would be missed, for the first time since FY05. This would be due to both demand and supply factors. However, for the next season, credit disbursement is expected to improve. For example, relatively stable fertiliser prices would help restore demand for agri-credit for inputs. Similarly, an ease in monetary policy and SBP measures to address liquidity shortages in the banking system would help improve supply of agri-credit in the months ahead.

*1.2.2 LARGE-SCALE MANUFACTURING* Growth in large scale manufacturing (LSM) has been negative for the tenth consecutive month in March 2009, the longest period in which production continued to shrink. LSM growth dropped by 7.6 percent during July-March FY09 compared with a 5.0 percent rise in the corresponding period of FY08.

Weakness in domestic demand, worsening power shortages, structural problems and deterioration in law & order situation are some important factors responsible for the decline in LSM production. Similarly, decline in external demand and sharply lower fund flows amid global recession probably contributed to slowdown in domestic manufacturing activities.

Consumer durables industry witnessed drastic decline in production during July-March FY09. Domestic consumer durable industry largely produces for the local market and is relatively less competitive than the regional competitors. In particular, jeeps & cars sub-sector is the worst hit by the sluggish demand due to (1) continued increase in prices; (2) rise in cost of financing; as well as (3) lower availability of institutional financing given the risk averse behaviour of banks amid increasing NPLs under consumer financing and liquidity problems.

Production decline in cooking oil & ghee industry is due to the combined impact of weaker domestic demand as well as uncertain international prices of key inputs. Similarly, textile industry suffered due to domestic as well as external shocks.

Power outages, increase in utility charges and higher financial cost were some domestic factors responsible for a drag in textile sector, weak external demand amid global recession hurt production in this export driven sector. In contrast, drop in sugar production is entirely attributed to domestic factor ie, lower sugarcane harvest during FY09.

*1.2.3 SERVICES* A slowdown in economic activities as well as poor law & order situation also impacted the performance of services sector during FY09. In contrast with stellar growth in recent years, services sector is expected to record below target growth in FY09. In relation to domestic economic slowdown, foreign inflows of funds in services have eased up in FY09.

Overall domestic economic slowdown witnessed in FY09, depicted by decline in large scale manufacturing, decrease in domestic demand and decline in exports as well as imports are factors impeding growth prospects in services. Outlook for trading activities is on the down side as the two major components of value addition in trading ie manufacturing and imports exhibit slowdown in FY09.

On the other hand, finance & insurance sub-sector also presents a mixed performance.The profits of commercial banks dropped substantially during the first three quarters of FY09. In contrast, SBP profits witnessed a substantial increase during this period.

Moreover, other financial institutions; including, mutual funds, modarba companies and foreign exchange companies - whose earnings contain higher risk premia and are prone to fluctuation in rupee parity - were negatively impacted by capital market instability in H1-FY09 as well as high NSS returns. Transportation and communication are expected to benefit from relatively lower international oil prices and consolidation of revenues; in addition storage activities exhibit sharp increase in FY09.

*1.2.4 PRICES* The relative ease in inflationary pressures that began in Q2-FY09 continued into Q3-FY09 with all price indices exhibiting a declining trend. After reaching a record high in August 2008, CPI inflation (YoY) declined to 17.2 percent in April 2009.

The recent downtrend in CPI inflation (YoY) was mainly attributed to declining domestic food inflation, principally a reflection of fall in international prices and smooth domestic supply of key staples. Signs of easing of inflationary pressures are also reflected by a decline in persistent component of inflation, which is measured by core inflation. The non-food non-energy (NFNE) and 20 percent trimmed mean, both the core inflation measures have shown signs of relative ease during April 2009.

Going forward CPI non-food inflation is also expected to ease as a result of lagged impact of tight monetary stance, declining international commodity prices, subdued inflationary expectations amid weaker domestic demand and absence of second-round effects due to a relative slowdown in food inflation. In line with CPI inflation (YoY) other price indices including WPI and SPI also witnessed a downtrend during Q3-FY09.

While, inflation is still high it is expected that the downtrend in inflation will gather pace in the next few months. Weak inflation expectations together with evident decline in domestic demand resulted in an ease in monetary policy in April 2009.

*1.2.5 MONEY AND BANKING SBP* reduced the policy discount rate through a 100 bps to 14 percent effective from April 21, 2009. Though the demand pressures have been showing a downtrend since November 2008, the lowering of risks to external account position and a visible downtrend in stubbornly high core inflation allowed SBP to lower the policy rate.

While inflation has been quite stubborn over the last 6 months, this appears to be changing, as evident in the declining trend in the year-on-year figures for CPI inflation as well as both core inflation measures. Similarly, a sharp slowdown in country's import bill during Q3-FY09 helped substantially in narrowing the current account deficit to US $396 million in the same period.

This together with financial flows from International Financial Institutions (IFIs) led to a significant increase in SBP's foreign exchange position to US $7.8 billion at end-April 2009 from its low level of US $3.5 billion by end-October 2008. Moreover, the private sector credit growth continued to show deceleration as it recorded net retirement of Rs 127.1 billion in January-March FY09 compared with net lending of Rs 203.1 billion in H1-FY09.

While the credit demand is slowing down, banks were also reluctant to lend to private sector due to rising credit quality concerns. On the fiscal side, the demand stimulus has continued to ease as fiscal discipline improved, and government reliance on central bank borrowing has further declined by end- March 2009.

The domestic liquidity condition, as a result of slowdown in domestic credit requirements by the government and private sector and sharp fall in pace of depletion of NFA of the banking system have continued, so far, remained relatively easy. The impact of improvement in demand pressures on rupee liquidity is quite visible from the softening of market interest rates since January 2009.

The YoY growth in broad money (M2) decelerated sharply to 8.4 percent as on April 25, FY09 compared to 15.3 percent in the corresponding period last year. This was despite a considerable fall in pace of depletion of Net Foreign Assets (NFA) of the banking system. The sharp deceleration in M2 growth came from reduced credit requirement by the government and private sector.

Resultantly, as on April 25, 2009, the YoY growth in Net Domestic Assets (NDA) of the banking system dropped to 16.9 percent from 22.6 percent a year earlier. The overall deposits mobilisation by banks remained weak during July-March FY09 as overall deposits of the banking system witnessed a contraction of 0.6 percent on cumulative basis.

This was despite a considerable ease in external current account pressures which was a significant source of erosion in deposit-base. Indeed, deceleration in private sector credit growth, higher competition from National Saving Scheme (NSS), and lower liquidity injections from SBP into banks following a lesser budgetary borrowings from the central bank limited the deposit growth in the period of analysis.

*1.2.6 FISCAL DEVELOPMENTS* Recent update on fiscal developments by Ministry of Finance indicates that the budget deficit for July-March FY09, as a percentage of the estimated FY09 GDP, is likely to remain at 3.1 percent compared with 4.7 percent in the corresponding period of FY08. Though broadly consistent with the annual fiscal deficit target for FY09, the quality of this fiscal improvement can only be judged once consolidated fiscal accounts are released.

Indicators of tax performance suggest a likely shortfall in tax collection (budget) target for FY09. During July-April FY09, FBR tax receipts amounted to Rs 898.6 billion compared with Rs 763.6 billion in the same period last year, reflecting a YoY increase of 17.7 percent.

Although the YoY growth in tax receipts during July-April FY09 is moderately higher than the 16.3 percent rise experienced in the corresponding period of FY08, monthly trend projects a deceleration in FBR tax revenues for the entire fiscal year 2008-09.

Even if FBR is able to arrest the downtrend in the growth of tax collection during the remaining months of FY09, the current pace of increase in tax receipts falls short of the 24.1 percent YoY growth required to attain the Rs 1250 annual budget target for FY09.

As a percent of annual target, total tax collection stands at 71.9 percent by end April 2009. Importantly, 74.5 percent and 78.6 percent of the annual budget target were achieved in the same period of FY08 and FY07 respectively. It merits mentioning here that the FBR tax collections fell short by Rs 17.8 billion in FY08.

To achieve FY09 target of Rs 1250 billion would require FBR to amass almost 28 percent of the target amount in the remaining two months; indicating that the revenue target for FY09 will be hard to achieve keeping in view the prevailing economic conditions in the country.

The aggregate government borrowing from domestic sources stood at Rs 353.0 billion during July-March FY09, which is significantly lower than the domestic budgetary requirements in the corresponding period of FY08. With apparent shortfall in external borrowing for budgetary support, the decline in budgetary borrowing from domestic sources in July-March FY09 reflects improvement in fiscal balance.

*1.2.7 BALANCE OF PAYMENTS* The improvement in Pakistan's overall external account, which emerged in November FY09, continued in the subsequent months as well. A large part of this improvement during July-April FY09 is on account of 23.5 percent contraction in current account deficit. This contraction mainly owed to fall in imports, on the back of weakening aggregate demand pressures and falling import prices, and strong remittances growth.

Unlike the improvement in current account, capital & financial account deteriorated sharply during July-April FY09. This deterioration was contributed by a fall in both investment and loan inflows. While loan inflows revived to large extent after IMF support for macroeconomic stabilisation program, foreign investment inflows continued their declining trend in the wake of worsening global financial crises.

While loan inflows could further strengthen if pledges (worth US $5.28 billion) made in Friends of Democratic Pakistan (FODP) conference materialise, substantial recovery in foreign investment inflows is subject to the normalisation of international financial market conditions and improvement of Pakistan's macroeconomic indicators.

The relative improvement in Pakistan's external accounts was reflected in foreign exchange reserves, which recorded sustained improvement November 2008 onwards. Consequently by April 30 2009, foreign exchange reserves had climbed back to almost the end-June level of US $11.4 billion after hitting a low of US $6.8 billion in October 2008. This also alleviated pressures on the exchange rate, helping it to stabilise in the range of 78.8 and 80.8.

*1.2.8 TRADE ACCOUNT* Trade deficit recorded a break from rising trend of the past six years, declining by 15.9 percent YoY during July-April FY09. This was principally led by a 9.8 percent YoY fall in imports that more than offset a small 3.0 percent YoY fall in exports during this period.

A larger share of the improvement in trade deficit was observed during January-April FY09; due to a sharp 35.1 percent YoY fall in imports that outpaced a yet large 19.2 percent YoY fall in exports in this period. The fall in imports, in turn, was contributed by a shrinking import demand which was complemented by a large YoY decline in import unit values from the beginning of January FY09.

Unfortunately exports, after recording a decent performance during July-October FY09, recorded an accelerated deterioration November 08 onwards. This deterioration in export performance was the result of multifarious issues faced by exports. For instance structural obstacles, domestic energy crisis, and worsening law and order situation were some of the major issues that constrained export performance.

The impact of these domestic impediments was complimented by deepening international recession from Q4-CY08, which further squeezed external demand for country's major exports leading to a YoY fall in exports for July-April FY09. Nevertheless, given the expectation that the decline in imports will be much larger than the fall in exports, the trade deficit is expected to continue to decline in the remaining months of FY09. Thus overall, the trade deficit for FY09 is likely to be much lower than that in FY08.

Reactions: Like Like:
1


----------



## Neo

*NEC approves Rs 621 billion allocations for PSDP​* 
ISLAMABAD (June 05 2009): The National Economic Council (NEC) on Thursday approved Rs 621 billion allocations for Public Sector Development Programme (PSDP) 2009-10 having Rs 421 billion federal and Rs 200 billion provincial component. Prime Minister Syed Yousaf Raza Gilani chaired the meeting that was attended by the chief ministers of provinces, AJK Prime Minister, Chief Secretary Northern Areas (NAs), federal ministers and secretaries.

NEC also approved GDP growth rate at 3.3 percent for the next fiscal year against 2 percent projected GDP growth of the current financial year. The agriculture growth has been targeted at 3.8 percent against 4.7 percent during the current year, manufacturing 1.8 percent, services 3.9 percent for the next fiscal year 2009-10.

The allocation for infrastructure will be Rs 209 billion, social sector Rs 190 billion and allocation for productive sector has been approved Rs 22 billion. NHA will get Rs 45 billion, water sector Rs 60 billion, health sector Rs 26 billion, allocation for education and higher education is Rs 32 billion.

Apart from PDSP, NEC approved Rs 160 billion for Benazir Income Support Programme (BISP), Rs 50 billion for Reconstruction and Rehabilitation of Internally Displaced Persons (IDPs) and Rs 40 billion for industrial sector development, Chairman Planning Commission Sardar Assef Ahmed Ali and Minister told media here on Thursday while addressing a news conference after the meeting.

Minister for Information said that Balochistan share will be Rs 50 billion as well as additional Rs 9 billion for budgetary support and special package. Minister said that Balochistan will also get Rs 21 billion allocation in current year PSDP in the next fiscal year.

He said that the government had to make massive cut in PDSP this year which was reduced from Rs 371 billion to Rs 219 billion mainly because of economic crunch. The minister said chief ministers of Sindh and Punjab underlined the need to accelerate efforts to exploit the coal reserves in Thar and other parts of the country to provide cheap electricity to the people. All the provinces also expressed unity with the people of Balochistan and offered some portion of their funds for the deprived people of the province.

Sardar Assef said that PSDP allocations may exceed Rs 421 billion as Rs 80 billion of Kerrey-Lugar bill would also come to the Planning Commission and most of it would be spent for development programmes in NWFP and Balochistan.

He said that 3.3 percent growth target was the minimum for the next fiscal which could go up to over 4 percent on the back of good performance by two or three crops. He said that so far figures showed 24 million tons wheat crops and he hoped that total wheat output would be around 25 million tons by end of the current fiscal year. He said that agriculture growth was around 4 percent of the GDP because of good crops this year.

The NEC also decided that Basha Dam would be started this year and the PC would meet all the demands of Ministry of Water and Power in connection for acquisition of land. Assef said that estimated cost of the project is $11.8 billion but the PC apprised the government would require only $6 billion as it wanted to complete all the civil works by itself. He said that the idea is to generate electricity from the dam through public-private partnership.

NEC also approved Approach Paper for the 10th Five-Year Plan (2010-15) entitled "Investing in People that would be tabled and presented in Parliament during the budget". The Approach paper gives higher priority to reducing inter-Provincial disparity. It calls for "people-centric" development with the setting of a comprehensive social protection system and delivery of high quality education and health and agriculture and agro-business to be the leading sector of the economy during the 10th Plan period.

Deputy chairman also unveiled other initiatives to be taken during the next financial year that include establishment of technical institute of international repute in 27 districts with a total cost of Rs 7 billion, Revolving fund for housing for the general public and government servants within an allocation of Rs 1 billion, Benazir Tractor Scheme costing over Rs 4 billion, Grain Storage facilities are being increased within investment of Rs 27 billion, Public-Private partnership in the field of Dairy Products with a government equinity of Rs 3.5 billion and SMEs will be promoted through advisory services in the areas of Khadi and leather crafts.

Reactions: Like Like:
1


----------



## Neo

*PHSADC to send small arms makers' delegates to Turkey​* 
PESHAWAR (June 05 2009): Pakistan Hunting and Sporting Arms Development Company (PHSADC) is sending a delegation of small arms manufacturers from Pakistan to Turkey with the objective of advancement of production standard of non-lethal weapons through transfer of technology.

"We are sending the arms manufacturers so that they could be apprised about new technology and advancement in gun manufacturing and replication of the modern technique in our country," said Nauman Wazir, Chairman PHSADC.

The delegation, comprising of six members, would leave Pakistan for Turkey on June 11 and will return after staying there for six days. During the visit, Nauman adding the delegation members will hold meetings with owners of different gun manufacturers, engineers besides holding discussion with heads of government departments regulating arms production in Turkey.

Nauman Wazir said gun manufacturing technology is very latest and advanced in Turkey and the PHSADC realised this during an international exhibition of arms recently held in Germany. He said production standard, value addition of the product and its finishing is very fine in Turkey and PHSADC wants to get information about the technology and its replication in Pakistan.

"Without improving the production standard and value addition of the product, we cannot attract foreign buyers for hunting and sporting arms being produced in Pakistan, he observed. PHSADC Chairman said the company is set up with the objective of harnessing the untapped potential of gun manufacturing in Pakistan.

The PHSADC, he continued, is striving to increase export of hunting and sporting arms manufactured in Pakistan by developing and enhancing the skills and craftsmanship of gunsmiths. He expressed the hope that visit of local arm manufacturers to Turkey will help a lot in improving the standard of hunting and sporting arms in the country through transfer of technology.

Reactions: Like Like:
1


----------



## Neo

*KESC launches first phase of 180 megawatts power project​*
KARACHI (June 05 2009): The Karachi Electric Supply Company (KESC) has launched the first phase of its 180 MW, GE Jenbacher power plant, which will replace the existing 50 MW plant in SITE. The deal was signed by new management at KESC with the Austrian supplier in a ceremony in Dubai, UAE, in late 2008.

According to a press released issued by KESC on Thursday, Dale Sinkler, the company's Chief Operating Officer, Generation and Transmission, while addressing the daily briefing at KESC headquarters on Thursday said that work on the four-phased US $53 million project had started on January 15 and would be completed by the middle of July this year.

He said that KESC's fast-track total 180 MW power project is under construction and commissioning of its two sites, the one is being set-up in SITE and the other in Korangi Industrial Area. Each site having 90 MW capacities comprises of 32 gas engines.

The first section out of four, which shall generate 21 MW, is under commissioning at SITE. On Thursday, the engines have been commissioned and tested for operation. The complete section shall be fully commissioned early next week, providing 21MW to the grid.-PR

Reactions: Like Like:
1


----------



## Neo

*WB approves $900 mn aid package to Pakistan​*
Friday June 05, 2009

WASHINGTON: The World Bank on Thursday said it approved an aid package worth USD 900 mn for Pakistan, the bulkaimed at educational projects.

The assistance will help Pakistan "improve education in Punjab and Sindh Provinces and ... further scale up a community driven development project that is already active in some 35,000 villages throughout the country," the Bank said in a statement.

The credits from the International Development Association, the World Banks concessionary lending arm that specializes in helping the worlds poorest 78 countries, carry a 0.75% service fee, a 10-year grace period, and a maturity of 35 years.

"Even where there have been gains in student enrollment as in Punjab and Sindh, these have yet to translate into improved student learning," World Bank country director for Pakistan Yusupha Crookes said in the statement.

A USD 350 million package was approved for the Punjab province and a USD 300 million package approved for the Sindh province.

The aid will help education by focusing on "improving governance, management, and capacity in education -- which are at the heart of both the provincial governments reform strategies," Crookes said.

The Bank also approved USD 250 million package for an anti-poverty program that has received USD 646 million from the World Bank since 2000.

The program, which has reached more than 2.5 million people, includes funds for micro-credit loans and skills and enterprise development training.

Reactions: Like Like:
1


----------



## Omar1984

Trade between Sri Lanka and Pakistan improves 

Saturday, June 06, 2009
By our correspondent

KARACHI: Consul General of Sri Lanka in Karachi, V S Sidath Kumar, has said that Pakistan is the second largest trading partner of Sri Lanka in the SAARC region and total trade between the two countries increased by 169 per cent from $158 million in 2005 to $265 million last year.

While Sri Lankas exports increased from $43 million in 2005 to $73 million in 2008, Pakistans exports rose from $115 million to $192 million, he said.

Kumar, in a statement, said that Sri Lanka is participating in My Karachi Oasis of Harmony exhibition being held at the Karachi Expo Centre from June 5 to 7. The Sri Lanka pavilion is located at Hall No 1 of the Expo centre.

He said that this will be a good opportunity to promote Sri Lankan products in the Pakistani market, utilising the duty-free market access offered under the Pakistan-Sri Lanka Free Trade Agreement.

Pakistan implemented the final phase of concessions in March this year and more than 4,500 products have become duty free under the FTA.

The consul general mentioned that there has been substantial improvement in bilateral trade after the implementation of the FTA.


Trade between Sri Lanka and Pakistan improves


----------



## Omar1984

US company to finance energy projects in Pakistan 

Saturday, June 06, 2009
NEW YORK: Bergamo Acquisition Corp a publicly traded US company announced that agreement on all terms with its lender to finance energy projects for Pakistan has been completed. The value of all projects is $1.5 billion.

President and CEO of Bergamo Acquisition Corp, Hillard Herzog will travel to Pakistan to sign the contracts.

The projects have expanded in scope. In addition to the clean coal plant and the LED high efficiency lighting mentioned previously, financing now includes several solar lighting facilities. The first of these solar lighting facilities is anticipated to be operational within 90 days after signing of all agreements.

Herzog commented, Clean energy is very important to the people of Pakistan. I am very pleased that we have been able to work with President Zardari, Chief Minister Sindh and Minister for Water & Power, meeting this most urgent need. Abundant clean energy is needed as Pakistan continues to modernize its infrastructure.


US company to finance energy projects in Pakistan


----------



## Neo

* Govt approves $9.36bn oil import bill for coming budget ​* 
Saturday, June 06, 2009

ISLAMABAD: The government has approved projection of the oil import bill to the tune of $9.365 billion in the upcoming budget for 2009-10 against revised estimates of $9.858 billion in the outgoing fiscal year 2008-09.

According to a summary for Annual Plan 2009-10 approved by the National Economic Council (NEC), a copy of which is available with The News, the government had estimated an oil import bill of $13.669 billion on eve of budget 2008-09, which was scaled down in accordance with revised estimates to the tune of $9.858 billion, owing to reduction in international prices of POL products.

Now the oil prices have started witnessing a surge in the international market, touching an average price of over $60 per barrel. But the government has projected oil import bill of $9.365 billion for 2009-10.

The Annual Plan 2009-10 envisaged GDP growth at 3.3 per cent, while inflation target is set at 9 per cent in the next budget. In real GDP growth of 3.3 per cent, the contribution of agriculture will be 3.8pc, manufacturing 1.8pc and services 3.9pc. GDP at the current market price would increase by 12.9 per cent as it would touch Rs14779 billion.

The target rate for CPI inflation is set at 9 per cent for 2009-10 against expected inflation of 20 per cent in 2008-09. This projection has been made in view of the improvements in macroeconomic indicators and weakening international oil and commodity prices, the summary states.

Total investment is projected to be around 20 per cent of the GDP in 2009-10. National Savings as a ratio to GDP is projected at 14.7 per cent, implying that almost 74 per cent of investment will be financed through national savings. This will leave 26 per cent of the investment to be financed from foreign savings, which will be 5.3 per cent of GDP.

Fiscal policy for 2009-10, the summary states, would be to keep the fiscal deficit within a sustainable limit by furthering reforms in tax system, broadening its base, improving tax compliance and minimizing evasion.

The main objective of this policy would be to allocate adequate resources for development activities, particularly for pro poor expenditures, in conformity with the Fiscal Responsibility and Debt Limitation Act, 2005, to achieve the projected economic growth of 3.3 per cent, reduce unemployment and poverty, and improve social indicators, the summary states.

Monetary expansion for the year 2009-10 will be in line with the projected GDP growth of 3.3 per cent and CPI inflation of 9 per cent. To keep M2 growth rate in the vicinity of the targeted level and to encourage private sector credit, it is imperative that government borrowing should be limited to a safe level. This will help in bringing down CPI inflation and strengthening growth prospects of the economy. On account of the global economic slowdown, and due to the domestic energy and law and order situation, exports for 2009-10 are projected to slightly increase to $19.9 billion against $19.5 billion estimated for 2008-09.

Imports during 2009-10 are estimated to decrease by 5 per cent to $28.7 billion from $30.2 billion in 2008-09. As a result, the trade account is projected to be in deficit by $8.8 billion in 2009-10.

Prospects for an invisible balance will continue to be governed mainly by the behavior of remittances, which are projected to be around $7 billion for 2009-10 compared to the estimated level of $7.2 billion in 2008-09.

The current account deficit is targeted at $9.5 billion in 2009-10 compared to the estimated deficit of $9.357 billion for 2008-09, the summary added.


----------



## Neo

*ADB links Basha Dam funding to NA consent ​* 
Saturday, June 06, 2009

ISLAMABAD: The Asian Development Bank (ADB) has linked Aid Memoir for $11.8 billion Diamer-Bhasha dam with a consensus resolution by the National Assembly in favour of the dam to have across the board ownership in the country.

A fact-finding mission of ADB has conveyed this to Pakistan in plain words here in a meeting held in the Economic Affairs Division (EAD), a senior official who attended the meeting told The News. WAPDA Chairman Shakil Durrani was also part of the meeting.

The government has already come up with a commitment to initiate formal work for construction of the dam portion of the mega project and allocated over Rs23 billion for next fiscal year.

Pakistan is expecting $5 billion from the ADB, but the Bank, which earlier indicated to lend loan amounting to $2.5 billion for the dam is likely to increase the credit in the range of $3 to $4 billion in the Aid Memoir.

The official said that Pakistan in the meeting asked the bank to come up with $5 billion loan for the mega project against its offer of $2.5 billion. The bank responded to Pakistans request saying, lets wait for the Aid Memoir.

EAD Secretary Furrukh Qayyum when contacted said that the fact finding mission actually came up with advisory report containing the guidelines and benchmarks as per the international best practices for loan generation prior to initiating the formal work on mega project such as a Diamer-Basha dam.

Once the project becomes marketable after bringing project document in line with advice of the fact mission of the Bank, it would be very easy to generate funding for the project. So far the bank has shown ownership for the project in all shapes, but wants the advisory report to get implemented first. 

When asked if ADB has indicated to come up with Aid Memoir in next 15 days, he said it is too premature, as Pakistan will first have to implement the advice, which the mission has given to the WAPDA chairman and then the stage will come for Aid Memoir. However, he admitted that the Bank has asked for the unanimous resolution in favour of Diamer-Bhasha dam to avoid any dispute. 

However, the official said that the ADB has communicated to the EAD top authorities that Pakistan needs to first ensure the other financial resources other than ADBs loan, which is required for completion of the whole project.

The bank, the official said, also took up the issue of transmission and distribution system, which will carry the electricity to load centres from the dam, water side canals, alignment in Karakorum Highway. The bank asked for the timely completion of the said projects so that the social benefits and dividends could be reaped on time.

The bank also seeks the assurance under its advisory, for better and effective modus operandi to tackle the issue of resettlement and rehabilitation for the people to be displaced and also desired for better prices for the lands of the affected people to be submerged in the dam. The official said that WAPDA chairman in the meeting assured the ADB mission that the government would soon table the resolution in the National Assembly seeking the unanimous consensus in favour of the dam.


----------



## Neo

* Govt allocates 1900 acres for Japanese zone ​* 
Saturday, June 06, 2009

KARACHI: The Acting Governor and Speaker Sindh Assembly, Nisar Khuhro, has said that the new NFC Award would be constituted in 2009-10, adding that the common man would be given special consideration in the upcoming budget.

Speaking to the media at the inauguration of My Karachi Oasis of Harmony being held at the Karachi Expo Centre from 5th to 7th June, Khuhro said that though Pakistan has internal and external threats, we have to move forward as we are a resilient nation and we will fight back all threats.

Adviser to the CM on Investments, Zubair Motiwala informed that a special zone has been allocated to Japanese entrepreneurs and investors and 1,900 acres of land has already been given to Japan.

He informed that Yamaha and Sony along with others have committed to come to Pakistan and invest in industries here. He said that the entire zone would be dedicated to Japanese entrepreneurs only and their residences would also be set up within the zone.

Motiwala added that Pakistan-China export zone in Punjab is on the stage of completion and this new Japan zone would be established along the same lines.

Sindh Minister of Industries, Rauf Siddiqui invited the business community to invest particularly in Karachi, Hyderabad, Nawabshah and Sukkur as he said that these are the areas that have been targeted for setting up new industrial zones.

President of KCCI, Anjum Nisar said that Pakistani businessmen have the skills, education, strength and the natural resources but what they need is governments support to help them utilize their opportunities to the maximum.

He urged the Sindh government to provide equal playing field to trade and industry of Sindh and particularly Karachi. Nisar said that measures should be taken to reduce high cost of doing business, rising prices of utilities, prolonged power and gas outages etc.

Nisar also highlighted that small and medium enterprises (SMEs) are the backbone of the economy of any country and therefore the government should pay special concentration on them.

He said, I would urge the concerned circles of the government to establish more SME zones especially for women entrepreneurs. He further stated that it is the small and medium enterprises that bring about economic revolution.

Leader of BusinessMen Group, Siraj Kassam Teli stated that KCCI has no commercial motives for organizing the exhibition. We are making our humble contribution in restoring and uplifting the image of Karachi, he expressed.

Teli asked the government to reduce interest rates by 5pc to move the economy towards growth. The government and its economic managers were informed many times to loosen up the monetary policy and bring down the interest rates into single digits, he stated. By not accepting our point of view of following supply side of economics, it has increased the cost of doing business to such a level that our industry has become uncompetitive and at the same time, the standard of living has become costly for our people, he added.


----------



## Neo

*24 companies with foreign investment registered: SECP ​* 
Saturday, June 06, 2009

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) registered 24 companies having foreign investment in the month of May, indicating renewed confidence in Pakistans markets and economy. In April, the SECP had registered 16 such companies.

US investors have poured money in five companies followed by the UK, Canadian and Chinese investors with investment in three companies each. Investors from Nigeria and Afghanistan invested in two companies each, while those from Denmark, North Korea, Germany, Zambia, Ghana, Switzerland, Iran and Turkey invested in one company each.

Of the registered 24 companies, investment has been made in five companies each in the top sectors of services and trading. Others include three companies in communications, two each in food and beverages, construction and power generation and one each in information technology, tourism, fertiliser and mining. The trend shows the wide range of sectors in which foreign investment is taking place.

In addition, nine foreign companies were registered in May for establishing their place of business in Pakistan. Of these, four companies have UK as the country of origin, two from the UAE, and one each from Japan, the Netherlands and Singapore.


----------



## Neo

*Pakistan joins global renewable energy body ​*
ISLAMABAD: Pakistan has joined International Renewable Energy Agency (IRENA) after signing the statutes in Berlin to become the 87th member of the newly set up world body on renewable energy. 

Pakistan 's Ambassador to Germany, Shahid Ahmad Kamal signed the statutes at the German foreign office in the presence of Thomas Meister, Head of Division for International Energy Policy at the German Federal Foreign Office. 

Ambassador Kamal noted that Pakistan had participated in the preparatory conferences and workshops of the IRENA and continue to make its positive contributions. He said Pakistan's supported in the formation of the IRENA had been acknowledged by the German government. The ambassador also mentioned the AEDB's contribution in Pakistan's accession to the IRENA saying it could not have been possible without the AEDB's support. 

The International Renewable Energy Agency was established on 26th January 2009 in Bonn . Germany was one of the driving forces along with Spain and Denmark for this venture. Together with the German Ministries of Environment (BMU) and Economic Cooperation and Development (BMZ), the German Foreign Office has campaigned for the IRENA and helped secure the necessary international support by dispatching special envoys and launching a global demarche effort. IRENA was solely dedicated to the promotion of renewable energy, and its membership is open to all United Nations member States. The IRENA welcomed Pakistan into its folds saying: "The signing exemplifies the world demand for a strengthened use of renewable energy technology." Now being a member of the preparatory commission, Pakistan would participate in its second session slated for 29-30 June 2009 in Sharm-el-Sheikh (Egypt), when the agency's interim headquarters and the Interim Director-General would be elected. 

Pakistan had on January 26, 2009 participated in the signing ceremony of the founding treaty of the International Agency for Renewable Resources (IRENA) in Bonn (Germany). The AEDB Chief Executive Arif Alauddin represented Pakistan at the ceremony. 

The AEDB had been nominated as the focal body by Government of Pakistan for coordination with IRENA. Speaking on the occasion Alauddin said: "After becoming the full member of IRENA we want to contribute to the sustainable development of renewable energies' vast global potential. This will also benefit those who don't have access to the electricity and thus are unable to use development opportunities to the same extent." He further said Pakistan would play its role in helping IRENA achieve its objective of becoming the main driving force for promoting a rapid transition towards the widespread and sustainable use of renewable energy on a global scale.


----------



## Neo

*Cement exports surge 37 percent​*
KARACHI: The cement exports were unexpectedly high at 1.17 million tonnes in May-09, up 16 percent month-on-month (MoM) and 37 percent year-on-year (YoY), the latest numbers released by All Pakistan Cement Manufactures Association said. 

According to the latest numbers released, the region-wise export suggests that growth is broad-based. On the back of robust exports, overall cement sales volumes rose by 2 percent YoY (+5 percent MoM) in May-09. However, exports since January-09 to date up 50 percent YoY to 10.10 million tonnes. 

Region-wise export data suggests that the growth is broad-based across the key markets of Afghanistan (25 percent share), the Middle East (45 percent share) and Africa (12 percent share) while Indian exports lag (7 percent share). 

The demand from UAE is expected to continue and much of the Middle East to contract sharply, possible upside to FY10 exports is contingent upon the relatively new markets of Africa and Iraq which now claim a joint 17 percent share of Pak exports and where export volumes have more than doubled relative to a year ago, an analyst said.

Domestic demand meanwhile remains weak where sales dropped by 14 percent YoY (-1 percent MoM) to 1.65 million tonnes in May-09. Higher infrastructure spend in FY10, a possible uptick in govt development spending (PSDP) in the 13th June budget and demand from dams, could be the key upside variable on the domestic front, analyst said. 

The time-lag between PSDP allocation and actual cement demand is 6-9 months while the lag for demand for dam construction may be longer yet.

Retail domestic cement prices (Rs 347 per bag) remained unchanged in May-09 amid low construction activity. It is notable that if a proposed 20 to 25 percent cut in excise duty comes through, Rs 10 to Rs 13 per bag could be drop in retail prices come July with no meaningful impact on margins.

Coal prices were also subdued hovering around $64 per tonne. While oil prices have strengthened in the past month on back of OPEC cuts and expansive fiscal and monetary policies, coal prices have lagged as global supply pressure has eased in the face of flat demand. 

Lucky Cements (LUCK) total volumes grew by 4 percent YoY to 5.25 million tonnes in 11MFY09. Local dispatches of the company declined by 16 percent YoY to 2.21 million tonnes, as it mirrored the overall industrys decline. 

D.G.Khan Cements (DGKC) total volumes declined by 13 percent YoY to 3.50 million tonnes in 11MFY09. In the domestic market, the companys market share got slashed to 12 percent in 11MFY09 from 16 percent in 11MFY08. 

Bestway Cement (BWCL) recorded 28 percent YoY growth in volumes in 11MFY09 on the back of 8 percent YoY growth in local dispatches, and a 119 percent YoY increase in exports.


----------



## Neo

*IDB pledges $140 million loan for Neelum Jhelum project ​* 
ISLAMABAD (June 06 2009): Islamic Development Bank (IDB) on Friday pledged $ 140 million loan for Neelum Jhelum Hydropower Project and inked a Memorandum of Understanding (MoU) in this regard with the government. Economic Affairs Division Secretary Farrukh Qayyum has confirming the report told Business Recorder that Pakistan and IDB are currently working to finalise three rolling financing plans.

In first phase, Pakistan and IDB entered an agreement to finance Neelum Jhelum Hydropower Project. The three-year rolling plan includes loan for Neelum Jhelum Hydropower Project, Nust Development Project worth $57 million and Modernisation of Signalling System $130 million and Diamer Basha Dam $30 million.

The government is also going to allocate Rs 16 billion in Public Sector Development Programme (PSDP) 2009-10 for the Neelum Jhelum Hydropower Project and a consortium is going to finance Diamer Bhasha Dam and IDB is part of the consortium. IDB has also pledged to provide $ 30 million for the dam. After finalising the modalities of the deal regarding the loan for Bhasha Dam, MoU will also be singed between the two sides, sources added.

The government has also decided to allocate Rs 30 million for the Bhasha Dam that includes Rs 15 billion for construction of the dam and Rs 15 billion for land acquisition and resettlement plan for the affected families, sources said.

Sources said that the country dialogue mission of IDB visited Pakistan in February and held meetings with concerned ministries/divisions/departments. During the meeting, IDB agreed to provide financing to Pakistan for National Trade Corridor in collaboration with Asian Development Bank (ADB). The IDB agreed to consider providing a loan for the Kharan and Wadhuk projects in Balochistan for an indicative amount of $15 million. The mission indicated that the bank was willing to be a part of any viable financing arrangement that supported Diamer Bhasha Dam.


----------



## Neo

* US urged to sign FTA with Pakistan ​* 
MULTAN (June 06 2009): Former Punjab Minister for Industries and ex-President of Multan Chamber of Commerce & Industry(MCCI) Khawaja Muhammad Jalaluddin Roomi called upon the US administration to sign a free-trade agreement (FTA) with Pakistan and grant it free access to American Markets to compensate it for its losses in the war against terror.

Talking to newsmen, here on Friday, Roomi said that total trade between the two countries had shot up to $5.6 billion last year from $2.6 billion in 2001, the year Pakistan joined the US-led war on terror, following the September 11 terrorist attacks.

Stronger economic ties with Pakistan would help advance America's geopolitical goals in South Asia, he said and sought a review of US tariff policy on Pakistan, saying that duties on Pakistani textiles were higher than on those from other key producers. He backed a proposal by Senator Maria Cantwell and Congressman Chris Van Hollen for a duty-free import of certain products from Pakistan, describing it as a good suggestion. Roomi stressed the need for a broad-based relationship with Pakistan, which needs to include enhanced co-operation in areas of trade and investment and energy security.

Khawaja Jalaluddin Roomi said greater trade engagement with the US would create new opportunities for businesses and jobs in both countries. He urged the Obama administration to work with Pakistan to boost intellectual property rights protection to foster US private sector investment in the country. Roomi said that there was a dire need of expanding trade ties with the US and for getting greater access, for Pakistani goods, to American markets to maintain balance of trade, and cutting down the trade deficit.

He said that despite the lapse of six years, Washington did not implement the Trade and Investment Framework Agreement, signed in June 2003 and aimed at expanding bilateral economic ties, including trade between Pakistan and the United States and promoting US investment in this country. The agreement was still bogged down in procedural issues, mostly of the US's makings, and has yet to be implemented. To make matters worse, no progress seems to have been made on implementing the Science and Technology Agreement concluded at the same time as the Trade and Investment agreement. Nor has there been any progress on implementing a five-year trade capacity-building programme, agreed in June 2003 that was to be launched under the auspices of the US Department of Agriculture's Commercial Law Development Programme. That Six-year period has now run out.

The stated purpose of the agreement was to strengthen and enhance trade and economic, and investment co operation between the two countries. But trade was not progressively liberalise.

He further said that the agreement should provide a framework for exploring new areas and developing appropriate measures for closer economic co operation between the two countries. Pakistani exports should increase in the United States To yield meaningful results, the agreement should aim at the establishment of effective trade and investment facilitation measures, including, but not limited to, simplification of customs procedures and development of mutual recognition arrangements. Expansion of economic co-operation between the two countries should complement the deepening of trade and investment links and the formulation of action plans and programmes aimed at giving concrete shape to the agreed areas of co-operation. None of these aims can be achieved, however, unless the two countries establish appropriate mechanisms for the purpose of effective implementation of the agreement.


----------



## Neo

*'Country unlikely to meet $22.1 billion exports target' ​* 
KARACHI (June 06 2009): Traders firmly believe that the country $22.1 billion exports' target for the current fiscal will likely fall short by at least 15 percent (likely to reach $18 billion by June 30) only because of the persistent power and gas shortage, soaring input cost, global economic downturn and the deteriorated law and order situation.

Expressing concerns over the present state of trade and economy, they said that the country's exports during the first 10 months of the current fiscal (FY09) shrank by 3.1 percent despite a contraction of 16 percent or $2.6 billion in trade deficit. It may be mentioned that exports had grown 8.5 percent during the same period of the last fiscal year.

Presently, total exports stand at $14.762 billion during the period of Jul-Apr FY09 against the fiscal target of $22.1 billion, which is unlikely to stretch to the proposed target, they said, adding that the import bill could be scaled down with regulatory duties on luxury products from 25 percent to 50 percent.

They said that the government will have to make exports of $7.4 billion in two months (May-June) to hit the country's historic exports target, which, in present situation was next to impossible as the country's per month average exports have been $1.5 billion so far.

Keeping in view the poor economic situation, the country is unlikely to even reach the last fiscal year's exports target of 19.2 billion, they maintained. Former Chairman Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Ijaz A. Khokhar told Business Recorder on Friday that the country may also face double shortfall in exports in the next fiscal year, if overall situation remains unchanged.

He urged upon government to introduce long and short terms policies for the growth of small and medium enterprises in the coming trade policy if it really intends to augment the country's exports manifold. "Future investment in SME sector is seemed unlikely due to rising cost of input, law and order situation and surrendering of banks to lend money to the industry, he said.

For putting the in order, the government has to resolve all the outstanding issues, which were also highlighted by the central bank of Pakistan, including the power shortage, he said, adding that the trade policy should carry long and short term policies so that survival of ailing industrial units could be made possible.

He proposed to the government to evolve the next trade policy, which is likely for a three-year period, in such a way that it should deal with every sector separately as problems of all are not the same in many ways.

The government should promote industrialisation in the country by providing the same investment facilities which it has been giving to foreign direct investors in the country, he demanded, adding that the local businessmen are ready to invest in the $dollars instead of Pak rupees.

Ijaz Khokhar urged the textile ministry to first provide all the stakeholders with a copy of textile policy draft before holding talks with them so that they could properly read it and present their views on issues of textile industry more effectively.


----------



## ejaz007

*Pakistan asks US to write off loans*

* Gilani tells Holbrooke move will help govt overcome economic problems * Asks US envoy to expedite passage of aid for Pakistan

Staff Report 

ISLAMABAD: Prime Minister Yousuf Raza Gilani asked the US on Friday to write off Pakistans debts, to help the government overcome the prevailing economic problems that have been accentuated by the war on terror, a mass displacement from Swat and adjoining areas and the global recession. 

Gilani made the appeal at a meeting with special US envoy Richard Holbrooke  who had called on the Prime Minister. 

Gilani also urged the US administration to expedite an initiative in the US Congress to increase aid for Pakistan, and called for the provision of much-needed military supplies for Pakistans campaign against terrorism. 

The prime minister acknowledged that the US had assisted Pakistan in providing relief to internally displaced people from Malakand by providing a $300 million aid package. Major European and Muslim countries would follow Americas lead and step forward with timely assistance, he hoped. 

Gilani said the armys offensive against the Taliban had the backing of the entire nation. The government and all national institutions are fully on board in fighting the menace of terror, and there is ... a spirit of reconciliation on national issues among all political stakeholders, he said. 

Holbrooke said the US would look into Pakistans request to write off debts, and steps were already being taken to fast track the supply of military equipment. 

According to the APP news agency, Gilani  in a separate address to Pakistan Peoples Party office-bearers from Balochistan  also called on the US to review its policy on drone attacks in the Tribal Areas, as it is proving to be counterproductive. He assured the PPP office-bearers that there would be no drone attacks in Balochistan.

Daily Times - Leading News Resource of Pakistan


----------



## Omar1984

Foreigners eager to invest in Pakistan 

Sunday, June 07, 2009
By By Faryal Najeeb 

KARACHI: Foreign delegates attending the My Karachi Oasis of Harmony exhibition have said that they are eager to invest in Pakistan as it has high potential for trade. 

They said that despite the law and order situation, business people were willing to enter the country due to excellent opportunities available here. 

Speaking to The News, on the second day of the event, General Manager of China High Top Trading, Tsingbo Zhao, said that his company has designed projects to generate electricity through wind turbines in Pakistan. Though he did not provide any investment details, Zhao stated that they are collaborating with the government on the project which they plan to establish on the outskirts of Karachi. 

He said that if the government allocated a vast area of land to them, then they would plan to install at least a hundred of their designed wind turbines, each of which would be 18m in length and of 750kgs and would have the capacity to produce over 30 megawatts of electricity. Zhao also informed that they are designing projects which would utilise solar energy to create power. 

Using coal to generate electricity is not the best option as it involves environmental issues as well. However, using wind turbines and solar energy to create electricity is feasible as Pakistans weather is ideal for this kind of generation, he added. 

Commercial Attache of Turkey in Pakistan, Nail Ersoy, said that the trade balance remains in favour of Pakistan due to the countrys high export of textile products to Turkey. He said that very recently a trade delegation of Pakistan had visited Turkey which was the second largest compared to other countries. He said the meeting in Turkey had been very successful and several new and non-traditional areas had been explored to increase trade between the two countries. Referring to their investments in Pakistan, Ersoy informed that Turkey has several stakes in the upcoming Textile City and the Gwadar Port also holds great importance for them. 

Secretary to Consul General of Indonesia, Aftab Ahmed Shahid, said that though the balance of trade was in Indonesias favour, there was a lot of trade potential between the two countries. 


Foreigners eager to invest in Pakistan


----------



## ejaz007

*Pakistan, Iran sign gas pipeline agreement*

ISLAMABAD: Pakistan and Iran have signed an agreement to activate a bilateral gas pipeline project, without India's participation, after 14 years of negotiations over what was initially framed as the Iran-Pakistan-India (IPI) gas pipeline project. 

Sources in the ministry of petroleum and natural resources told Daily Times here on Saturday that Pakistan Interstate Gas Company (PIGC) and the Iranian National Oil Company (INOC) signed the agreement late Friday in Turkey. 

The official said that the agreement would be governed through a third country law that was why it was signed in Turkey. 

Under the gas sale purchase agreement, Iran would provide 750 million cubic feet of gas per day to Pakistan for the next 25 years, which would generate 4000MW of electricity. Officials in Islamabad termed the deal a major breakthrough and an achievement that would greatly help Pakistan meet its energy needs. 

The project, when initially mooted in 1994, was intended to carry gas from Iran to Pakistan and on to India. New Delhi withdrew from the talks last year over repeated disputes on prices, transit fees and security issues. 

The pipeline project would be completed by 2013, the sources maintained. "The gas pipeline would begin from Gawadar near Iranian border having 800 kilometer length. The determination of gas price would be linked with oil prices in the international market but will be less than 25 percent as compared to crude oil prices," sources maintained. 

Officials of the ministry of Petroleum and Natural Resources termed the agreement as landmark achievement of the government and expressed the hope the it would help Pakistan to meet shortfall both for commercial and domestic purposes. 

The country urgently needed gas and the agreement would greatly help the country to over come the shortfall. 

Another official of the concerned ministry said that the new exploration and production petroleum policy 2009 with alluring incentives would definitely accelerate the investment in the oil and gas sector. Pakistan was rich in oil and gas, particularly Balochistan. If the government manages to enforce its writ by giving the ownership feeling to the local people, then aggressive oil and gas exploration could be carried out. This was the only way left for Pakistan to cater to the energy needs of the country. staff report

Daily Times - Leading News Resource of Pakistan


----------



## Neo

*Mobile firms link $1bn investment to tax relief ​*
Sunday, June 07, 2009 

ISLAMABAD: Mobile phone operators have told Prime Minister Syed Yousuf Raza Gilani that they would invest $1 billion in the next fiscal year 2009-10 if the government waives activation charges, reduces sales tax to 16 per cent and delays licensing for 3G (third generation) services, it is learnt.

If such facilitations are not provided, the mobile operators will not bring another $1 billion investment in the country, said a high-level official of one of the mobile companies while talking to The News here on Saturday.

Chief executives of mobile companies held a meeting with Prime Minister Gilani a few days ago in which they discussed making more investments in the next fiscal year.

But this investment depends on waiving the activation charge of Rs500, cutting sales tax from 21 per cent to 16 per cent and delaying licensing for 3G because the market situation is not ripe, the official added.

If mobile companies demands are not met in the next budget, then they will only invest in what is already in the pipelines to address their administrative problems, he stated.

The existing law and order situation and higher inflation, he said, played havoc with the industry which had invested over $6.7 billion in Pakistan.

He noted that foreign direct investment (FDI) attracted by the sector stood at $629 million in April-June 2008, which declined to $364 million in the next quarter (July-Sept).

Import of handsets was worth $127 million in April-June 2008, which declined to $70 million during July-September. The imports nosedived to just $17.95 million in the October-December period, indicating that smuggling was on the rise.

Cellular companies are paying 31 per cent taxes as well as Rs750 on the import of mobile phone sets. There is 21 per cent GST and federal excise duty and 10 per cent withholding tax on pre-paid cards.

After increasing taxes by the government in the budget for 2008-09, he said that revenue collection declined by around 9 per cent as it was standing at Rs9.463 billion in first quarter (July-Sept) of the current fiscal year, which decreased to Rs8.858 billion in the second quarter (Oct-Dec) of 2008-09.

The growth of the sector also witnessed a decline as it registered negative growth by 0.3 per cent in the October-December period during the current fiscal year 2008-09.

According to the PTA report, he said that it was the projection of the regulator that higher taxation resulted in revenue collection. 

According to PTA projection, revenue collection could be materialised at Rs45.496 billion with the imposition of 15 per cent tax, which was projected to decline to Rs41 billion with increased GST rates of 21 per cent. MH


----------



## Neo

*Pakistan, Iran sign gas pipeline agreement​*
ISLAMABAD: Pakistan and Iran have signed an agreement to activate a bilateral gas pipeline project, without India's participation, after 14 years of negotiations over what was initially framed as the Iran-Pakistan-India (IPI) gas pipeline project. 

Sources in the ministry of petroleum and natural resources told Daily Times here on Saturday that Pakistan Interstate Gas Company (PIGC) and the Iranian National Oil Company (INOC) signed the agreement late Friday in Turkey. 

The official said that the agreement would be governed through a third country law that was why it was signed in Turkey. 

Under the gas sale purchase agreement, Iran would provide 750 million cubic feet of gas per day to Pakistan for the next 25 years, which would generate 4000MW of electricity. Officials in Islamabad termed the deal a major breakthrough and an achievement that would greatly help Pakistan meet its energy needs. 

The project, when initially mooted in 1994, was intended to carry gas from Iran to Pakistan and on to India. New Delhi withdrew from the talks last year over repeated disputes on prices, transit fees and security issues. 

The pipeline project would be completed by 2013, the sources maintained. "The gas pipeline would begin from Gawadar near Iranian border having 800 kilometer length. The determination of gas price would be linked with oil prices in the international market but will be less than 25 percent as compared to crude oil prices," sources maintained. 

Officials of the ministry of Petroleum and Natural Resources termed the agreement as landmark achievement of the government and expressed the hope the it would help Pakistan to meet shortfall both for commercial and domestic purposes. 

The country urgently needed gas and the agreement would greatly help the country to over come the shortfall. 

Another official of the concerned ministry said that the new exploration and production petroleum policy 2009 with alluring incentives would definitely accelerate the investment in the oil and gas sector. Pakistan was rich in oil and gas, particularly Balochistan. If the government manages to enforce its writ by giving the ownership feeling to the local people, then aggressive oil and gas exploration could be carried out. This was the only way left for Pakistan to cater to the energy needs of the country.


----------



## Neo

*Pakistan becomes the 20th most attractive outsourcing destination​*
CHICAGO: Deteriorating cost advantages and improved labor quality are driving a dramatic shift in the geography of off shoring according to the latest edition of global management consulting firm AT Kearney's Global Services Location Index (GSLI), a ranking of the most attractive off shoring destinations. AT Kearney is a global management consulting firm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results.

While India, China and Malaysia retain the top three spots they've occupied since the inaugural GSLI in 2004, a fundamental shift in the index has taken place as once strong Central European countries have yielded ground to countries in Asia, the Middle East and North Africa.

Pakistan has become the 20th most attractive outsourcing destination, according to consulting management firm AT Kearney. Even as concerns increase about Pakistan's stability and the growing displaced population due to ongoing military operations with the Taliban, the country made a significant jump on AT Kearney's 2009 Global Services Location Index released May 18. Pakistan went from number 30 in 2007 to number 20 in 2009.

The GSLI analyses and ranks the top 50 countries worldwide for locating outsourcing activities, including IT services and support, contact centres and back-office support. Each country's score is composed of a weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment.

Established Central European countries including Poland, the Czech Republic, Hungary and Slovakia, once among the premier off shoring destinations for Western Europe companies, have fallen significantly due to a rapid increase in costs driven by both wage inflation and currency appreciation against the dollar. Meanwhile, low-cost countries in Southeast Asia and the Middle East made significant gains this year as the quality and availability of their labor forces improved. Egypt, Jordan and Vietnam ranked in the GSLI's top 10 for the first time ever.

"While cost remains a major driver in decisions about where to outsource, the quality of the labour pool is gaining importance as companies view the labour market through a global lens driven by talent shortages at home, particularly in higher, value-added functions," said Norbert Jorek, a partner with AT Kearney and managing director of the firm's Global Business Policy Council. "In response, governments all over the world are investing in the human capital demanded by the off shoring industry."

The Middle East and North Africa is emerging as a key off shoring region because of its large, well educated population and its proximity to Europe. In addition to Egypt and Jordan, ranked at sixth and ninth, respectively, Tunisia (17th), United Arab Emirates (29th) and Morocco (30th) all rank among in the GSLI's top 30 countries. "The Middle East and Africa area has the potential to redraw the off shoring map and in the process bring much needed opportunities for its large, underemployed educated class," said Johan Gott, project manager for the Global Services Location Index.

Saharan Africa also showed strength. Ghana ranked 15th, Mauritius 25th, Senegal 26th and South Africa 39th.

Countries in Latin America and the Caribbean continue to capitalize on their proximity to the United States as nearshore destinations. Chile placed highest among countries from the region, ranking 8th on the strength of its political stability and favorable business environment. Other strong performers in the region include Mexico (11th), Brazil (12th) and Jamaica, which rose 11 places to rank 23rd.

India, China and Malaysia continue to lead the index by a wide margin through a unique combination of high people skills, favorable business environment and low cost. In particular, India has remained at the forefront of the outsourcing industry and actually has become an enabler for industry growth through expansion of Indian off shoring firms into other countries.

"The dynamics of global off shoring are clearly shifting as companies re-evaluate the political risks, labor arbitrage and skill requirements in the context of the likely aftermath of the global economic crisis," said Paul A. Laudicina, AT Kearney chairman and managing officer. "Risk management will take on new importance to protect global service delivery from interruption and ensure capabilities are strategically dispersed rather than concentrated in a few cost-effective locations." daily times monitor

Reactions: Like Like:
1


----------



## Neo

*PM presses US for civilian N-tech​*
** Gilani says Pakistan has always opposed drone attacks
* Wants new laws to deal with terrorists​*
LAHORE: The United States should share its nuclear technology with Pakistan to ensure that the balance of power in the region remains intact, Prime Minister Yousuf Raza Gilani said on Saturday.

Talking to journalists at the foundation-laying ceremony of the Aiwan-e-Quaid-e-Azam in Johar Town, Gilani said the US already had a civilian nuclear deal with India and Pakistan now believes that it should be extended similar concessions. 

Responding to a question on Pakistans stance on Irans nuclear programme, he said that acquisition of peaceful nuclear technology was the right of every country.

Drone attacks: Gilani said Pakistan had clearly told the US that drone attacks were counter-productive and that they only serve to compound the problems that the country faces. He said, We are strongly against these attacks because they are against our strategy of segregating peace-loving tribal people and militants. We have asked the US to provide Pakistan the technology and the possession of drones so that in case of credible intelligence, we ourselves can take action, he added. 

To a question about Indias reaction over the release of Hafiz Saeed on court orders, the prime minister said there were some loopholes in the countrys laws and legislation had to be carried out to deal more effectively with elements committing crimes in other countries.

The PM also announced a financial grant of Rs 100 million for Aiwan-e-Quaid-e-Azam. Punjab Governor Salmaan Taseer and Chief Minister Shahbaz Sharif were also present on the occasion.

Reactions: Like Like:
1


----------



## Neo

*Agriculture sector contributed 4.7 percent to GDP growth in 2008-09​* 
ISLAMABAD (June 07 2009): Agriculture sector has contributed 4.7 percent in growth of gross domestic products (GDP) during the 2008-09 financial year. According to sources, the contribution of major crops is 7.7 percent attributed to 12.3 percent higher production of wheat, 25 percent of rice, 12 percent of maize, 60 percent of gram and 25 percent of sesamum during the current financial year.

The production of cotton has increased by 1.4 percent, but the production of sugarcane declined by 21.7 percent. The production of wheat is 23.42 million tons against 20.958 million tons last fiscal year.

THE WHEAT PRODUCTION IN PUNJAB: stands at 17.9 million tons;

Sindh: 3.542 million tons;

NWFP: 1.108 million tons; and Balochistan: 0.867 million tons. Total wheat cultivation area this year was 9.062 million hectares as against 8.54 million hectares last year.

The cotton crop production has registered 6.031 million tons in the current financial year as against 5.94 million tons last year. Punjab produced 4.46 million tons cotton; Sindh: 1.51 million tons; Balochistan: 45,500 tons cotton. Total cotton cultivation area this year was 2.81 million hectares against 3.05 million hectares last year. Cotton (lint) production was 11.819 million bales. Rice output during the current financial year is 6.95 million tons as against 5.56 million tons last year.

The rice crop production in Punjab is 3.64 million tons; Sindh: 2.53 million tons; NWFP: 0.128 million tons; and Balochistan: 0.64 million tons. The rice crop was sown on an area of 2.96 million hectares this year as against 2.51 million hectares last year. Pakistan produced 50.04 million tons sugarcane in the current financial year as against 63.920 million tons during last year.

The sugarcane output in Punjab has been recorded at 32.2 million tons; Sindh: 13.3 million tons; NWFP: 4.408 million tons; and Balochistan: 379,000 tons. The sugarcane crop area was 1.029 million hectares this year as against 1.241 million hectares last year.

Total production of Bajra for this year is 0.29 million tons; Jowar: 0.164 million tons; maize 4.035 million tons; sesamum: 41,000 tons; gram: 0.76 million tons; barely: 83,000 tons; mustard: 0.14 million tons; and tobacco: 0.113 million tons.

Fruit production during the current financial year was 7.399 million tons. The production of pulses declined by 8.9 percent from 0.280 million tons to 0.255 million tons during the current financial year. The production of pulses includes 13,500 tons mash; 21,100 tons of masoor; 0.157 million tons of moong. The production of vegetables this year has been estimated at 5.72 million tons as against 5.6 million tons during 2007-08.

The gross output in livestock sector increased from 3.4 percent to 3.8 percent in the current financial year in comparison to last year. Livestock products registered the same growth rate for the two years - 207-08 and 2008-09, ie 3.2 percent. Milk production value increased from Rs 361,673 million in 2007-08 to Rs 373,401 million in 2008-09. Poultry's growth increased from 6.6 percent last year to 11. 2 percent in the current financial year.


----------



## Neo

*'Projects helpful in elimination of poverty to be included in ADP'​* 
LAHORE (June 08 2009): Chief Minister Punjab Muhammad Shahbaz Sharif has said that next Annual Development Programme (ADP) will be responsive to the needs of the poor and special measures will be taken for the uplift of backward and far-flung areas of the province. He said that such projects would be given priority under ADP which could help eliminate poverty, ignorance and unemployment.

He was addressing a high level meeting regarding ADP formulation here on Sunday. Provincial Minister for Finance Tanvir Ashraf Kaira, Senator Ishaq Dar, Member National Assembly Ahsan Iqbal, Chief Secretary Punjab, Chairman Planning & Development, secretaries of Finance, Schools and Communication & Works departments as well as officers concerned were present. He said that priorities would have to be set within available resources and realistic utilisation of funds will have to be ensured.

He said that instead of putting additional burden on the common man in the next budget, such segments should be brought into the tax-net which could afford to pay. He said that welfare and uplift of the poor masses remained the top priority of the government and a number of revolutionary measures had already been taken in this regard including Sasti Roti, Food Support Programme and Punjab Educational Endowment Fund. He said that such schemes were being included in the next ADP which could accelerate development process in the province. The meeting considered in detail various projects in different sectors for next ADP.

Reactions: Like Like:
1


----------



## Neo

*Industrial sector enters restructuring phase​* 
MULTAN (June 08 2009): Pakistan's industries battered by falling exports amid the global economic slowdown, have entered a restructuring phase, which will encourage banks to enhance private sector lending, Former Punjab Minister for Industries Khawaja Muhammad Jalaluddin Roomi said while talking to newsmen here on Sunday. Private sector credit off take has decelerated sharply in recent months.

Between July-April 2008-09, the private sector got credit worth only Rs48 billion compared with Rs 371 billion in the same period of the previous year. This trend along with a substantial increase in government borrowing from commercial banks has fanned concerns that the private sector may not get its share of credit.

He said "banks should start lending once exports picked up". NPLs (non-performing loans) have also risen in the SME sector, the textile industry and the consumer segment. "According to the State Bank of Pakistan (SBP) recent economic review, banks have also not been able to mobilise deposits. Towards this, banks should adopt a customer-centric segmented approach.

"Banks and financial institutions should focus on improving the quality of service by using automation and training of staff to satisfy the customers," Roomi said.


----------



## Neo

*Special package likely for war-hit industry in NWFP​* 
ISLAMABAD (June 08 2009): The federal government is likely to announce a special relief package in the budget for the industry of terrorism-hit province, ie, North West Frontier Province (NWFP), it is learnt reliably. In this regard, deliberations have already been completed at the top level in which a critical role was played by the provincial government, the sources added.

According to a survey conducted by the Industrialist's Association Peshawar (IAP) 37 percent negative growth has been recorded in the industrial sector of Peshawar as compared to overall 7.6 percent negative growth in Large Scale Manufacturing (LSM). Meanwhile the Association has written a letter to the Prime Minister's Advisor on Finance, Shaukat Tarin, asking for relief for the war-affected industry. IAP has submitted the following proposals to the government for consideration: No load shedding of electricity and natural gas on industries in Peshawar.

Withholding tax on cash withdrawal or companies registered with the SECP (only) be stopped and these payments be made at the time of submitting of tax returns instead of in advance. State Bank of Pakistan (SBP) should issue prudential regulation to permit banks to defer loan repayment for one year similar to textile sector, last year.

No audit for the next two years of registered companies/industries who have submitted income tax returns. Relief on mark-up should be extended on the pattern of textile sector; all banks should be instructed not to charge more than three percent above their cost of funds for the working capital of industries in NWFP.

The IAP has also cited the example of Bangladesh where upper limit on all industries is 2.5 percent.

According to the association, all the proposals have no revenue loss to the GoP but would go a long way in easing the anger of the people of NWFP towards the federal government. Islamabad Chamber of Commerce and Industry has also proposed that the government should extend the 10-year tax holiday for manufacturing sector in NWFP to revive business and economic activities in the province.

Mian Shaukat Masud, President, ICCI in a statement said on Sunday that the province has sustained a loss of over Rs 515 billion since the war on terror started.

He said due to militancy, in less than one year about 843 production units have closed down in NWFP bringing down the number of operational industrial units to 594 in December 2008 while around 34000 workers have lost jobs during the year: the workforce engaged in the industrial sector has dropped from 58,000 a year ago to 24,000 in 2009. Majority of industrial units have closed in the war-hit area which includes 287 units from Swat, 178 from Buner, 36 from Malakand, 32 from Dir and 115 from Mardan.

Reactions: Like Like:
1


----------



## Neo

*Fourth China-South Asia Business Forum: China urged to make sizeable investment in Pakistan​*
LAHORE (June 07 2009): President of the SAARC Chamber of Commerce and Industry (SAARC CCI), Tariq Sayeed has underlined the need for a sizeable investment by China in the South Asian countries, particularly Pakistan to have a quantum leap in trade with the countries in the region.

According to a message received here on Saturday, Tariq Sayeed, stated this in his keynote speech at the 4th China-South Asia Business Forum, entitled "Facing Global Financial Crisis: Economic and Trade Co-operation between China and South Asian Countries," at Kunming, China.

He said foreign direct investment had played a vital role in elevating China as the second largest nation with regard to exports. SAARC CCI President called for enhanced economic co-operation between China and South Asia as a mechanism to face challenges posed by global financial meltdown. The global financial crisis had broken inertia of sustainable and double digit economic growth of China and many developing countries, which were heavily dependant on the US and EU countries, he added.

He underlined the need to evolve a common strategy by China and South Asian countries to face the challenges. Tariq Sayeed said on account of its ability to produce quality goods at highly competitive prices China enjoyed huge trade surplus with 134 countries, as a result medium sized economies facing huge trade deficit perceived China as threat to their economies.

He urged the public and private sectors of China to change this perception through a sizeable FDI into such countries, which are facing huge trade deficit with it including Pakistan. He said since 2000 trade between China and South Asian countries had witnessed a steady growth of more than 20 per cent per annum and trade volume was expected to exceed $60 billion mark by the end of 2009.

Referring to a study, he said China's trade with India would reach $60 billion, with Pakistan $10 billion, Bangladesh $5 billion, Sri Lanka $4 billion, Nepal $800 million and Maldives $200 million by 2010. However, he said pace of China-South Asia trade was relatively slow as compared to China's trade with ASEAN, which was likely to reach $275 billion by 2010.

Appreciating the economic policies of China, he said since it adopted liberal policies in 1982 the country had made tremendous growth. It had been successful in attracting FDI of worth $800 billion since then including $82 billion in 2008 alone, which had been instrumental in making China as the second largest export-oriented country and reducing poverty from 50 percent to 16 percent, he added.

"Developing countries need to follow Chinese Economic Model, if they want to attain sustainable growth," said President SAARC CCI. He said the government of Pakistan had embarked upon a very liberal and friendly policy towards South Asia, which would help in effective implementation of SAFTA and provide China enormous opportunities in the neighbouring region.

SAARC CCI President gave some recommendations to further improve economic co-operation between China and South Asia, which included Chinese FDI in South Asian countries, transfer of technology, close relationship between business communities, frequent exchange of delegations at socio-economic and cultural levels, promotion of tourism, removal of non-tariff barriers, technical assistance to increase production base of agriculture and manufacturing sectors.

Reactions: Like Like:
1


----------



## Neo

*Govt may unveil Rs2.9tr budget with 4.9pc deficit ​* 
Tuesday, June 09, 2009

ISLAMABAD: The government is to announce a Rs2.9 trillion federal budget based on revival of economy with a human face with a 4.9 percent fiscal deficit.

The budget will contain the imposition of 5 percent carbon duty on petroleum gases, 1-5 percent central excise duty on aeroplane and 2 percent on textile spinning machine, a senior official who is the part of the budget making confided to The News.

The government will impose the carbon duty of 7.5 to 10 percent on high-speed diesel (HSD), while 5 percent on the other petroleum products.

The 5 percent carbon duty will be levied on the products that include coal, coke coal, crude oil, motor spirit, aviation spirit, kerosene oil including jet fuel, light diesel oil, furnace oil and petroleum gases and bitumen, a senior official told The News.

The official said the government is also considering imposing 1 to 5 percent central excise duty on import of aeroplane and if one percent duty is levied, than the projected revenue stands at Rs8 million, if 2 per cent then revenue to be at Rs16 million and if 5 percent then revenue will stand at Rs40 million.

The government is also inclined to place levy by 1 to 5 percent CED on jute cutting machines with projected revenue of Rs8, Rs18 and Rs40 million respectively. Likewise the government is likely to impose duty on iron and steel by 2 percent with projected revenue of Rs9 million. 

The government is also likely to impose 1 to 3 percent CED on import of cows from India with projected revenues of Rs8, Rs15 and Rs38 million. The official said that country is expected to gather revenue of Rs140 billion by the levy of carbon duty on petroleum products. And if the proposed CED on other mentioned items gets implemented the government is projected to gather revenue of Rs20 to over Rs50 billion. The government would not impose any duty on power related projects.

Meanwhile the Prime Minister Syed Yousaf Raza Gillani was briefed by Advisor to Prime Minister on Finance Shaukat Tarin on upcoming budget landscape.

A senior official who attended the meeting told The News that Prime Minister showed concern over the low revenue collection and said that the next year target of Rs1405 billion as revenue should be finalized in a manner that it should be realized. The official said that a 5 per cent cut in excise duty on vehicles is expected that will provide ease to the masses to purchase the vehicles and make the industry economically viable.

In the cement industry the government is also inclined to reduced the excise duty, as this step will help increase the production of the cement in the country. Next year, the government is to initiate two biggest projects that include Diamer-Basha dam and Neelum-Jhelum Hydropower project and the consumption of the cement would increase manifold. However, the duty on cigarettes would increase by 8 to 10 per cent.

When contacted Adviser to Prime Minister Shaukat Tarin conformed that the government will announce the budget with less than 5 per cent fiscal deficit -that is a 4.9 per cent deficit. 

However, he claimed that the government is making the budget keeping in view the 3.4 per cent budget deficit which was earlier agreed and increase by 1.2 percent to 4.6 percent fiscal deficit has been made keeping in view the $2 billion Tokyo pledges and further increase by 0.3 per cent in fiscal deficit has been made because of the grants to be trickled down to Pakistan for internally displaced persons relief, rehabilitation and reconstruction. So we are well within the 3.4 percent fiscal deficit.

Mentioning about the carbon tax, he said that it is necessary to change the behaviour of the Pakistani masses consuming 80 per cent electricity from diesel run thermal powerhouses. We need to develop habits to use electricity efficiently and rationally and also need to go on for coal electric power, more hydro generation with other alternative means such as wind and solar energy.


----------



## Neo

* 500,000 people visit My Karachi exhibition: KCCI president​*
Tuesday, June 09, 2009

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) President Anjum Nisar said this year 500,000 people visited the My Karachi Oasis of Harmony exhibition, making it a bigger success than the previous year. 

Speaking at a press conference on the concluding day of the exhibition at the Karachi Expo Centre on Sunday, Anjum Nisar said that after witnessing the success of the event, the Karachi Chamber had decided that from next year onwards, the event would be held in February rather than June and had been extended from three days to five days. 

He said they had received an overwhelming response from women entrepreneurs and next year more stalls would be provided to them. The KCCI, he added, was aiming to achieve the target of one million visitors in 2010. 

KCCI president Nisar said every year My Karachi is held to highlight the positive image of the country, especially the Karachi city and the success of the event proves that the KCCI had managed to accomplish its aim.

He also said that in August 2009, the KCCI would be celebrating its 50th anniversary which would be marked in an extravagant way. Speaking to The News, visitors at the event said that exhibitions at the Expo Centre were very welcome as they provided a great outing for families. Many said they wanted to spend the weekend in leisure and also made essential purchases at bargain prices.

The visitors also said owing to the law and order situation in the city, families now avoided visiting public places, but family-related events at the Expo Centre was an ideal excuse for friends and relatives to gather in order to have fun and shop without fear of being robbed as usually the case in the citys bazaars.


----------



## Neo

*Under-invoicingof Chinese goods soars above $5bn ​* 
Tuesday, June 09, 2009

LAHORE: The industrial sector has drawn the attention of the government to the difference of $5.809 billion between 2003 and 2007 in figures of Chinese government for goods exported to Pakistan and the officially recorded imports of these goods in Pakistan.

The local manufacturers point out that though under-invoicing has been in vogue in Pakistan since long, it has never been possible to record its quantum as most of the imports were from open market economies where the officials do not bother if the goods are under-invoiced. However, ever since Pak-China trade started expanding it has become possible to at least document the quantum of under invoicing channelled through Chinese products.

The Chinese economy is still principally controlled by the state and the amount received by the Chinese exporter for under-invoicing the goods to the third country are well documented. The Chinese official data reflects the actual export figures while the data of the importing economy reflects the invoiced amount less the amount paid by the importer to the Chinese supplier in cash.

They pointed out that in 2003 the Chinese government in its exports statistics declared that it has exported goods worth $1854.970 millions to Pakistan but the official figures of imports from China was recorded by the Pakistani government as $1150.363 only during that year. There was a difference of $4704.607 million in the amount quoted on the official sites of both countries.

In 2004 Pakistani government declared that goods worth $1488.774 million were imported from China while the statistics of the Chinese government showed that the goods exported to Pakistan that year were worth $2465.769. The difference between the two countries on the goods imported in to Pakistan enlarged to $976.995 million. In 2005 Chinese claimed to have exported goods worth $33427.662 Pakistan while the local authorities claimed imports of only $2349.395 enlarging the differential in figures to $1078.267 million.

This trend continued in 2006 and 2007 for which the official figures of both countries are available on their websites. In 2006 the difference in the exports claimed by Chinese and import invoices cleared by the Pakistanis rose to $1324.439 million and in 2007 it enlarged further to $1624.825 million.

Proven under-invoicing of goods imported from China into Pakistan is a major stumbling block in the growth of Pakistans domestic industry. Former President Lahore Chamber of Commerce and Industry Mian Anjum Nisar said that the discrepancies in the Chinese and Pakistani trade statistic was pointed out in 2004 and ever since then to every government in Pakistan. He said Pakistan and China in fact have signed a treaty under which Chinese promised to check the under-invoicing and enclose the actual invoice of the goods in each consignment but the practice has not yet taken place.

Industry circles point out that under-invoicing cannot be done without the connivance of clearing staff at the Customs. They said the bureaucracy in fact is not interested in implementing the agreement with the Chinese. They said in current high tech age it is possible for both the governments pass on immediate detailed information of the goods traded between the two countries on daily or even hourly basis.

Industry circles pointed out that the under invoiced finished goods from China and many other countries have marginalized the SME sectors of the economy. They said Chinese under-invoicing has been documented by the difference in trade statistic of the two governments while under-invoicing from Far East and even European country is of the same level but cannot be proved through country trade data. However they said if the custom officials assert themselves and find out the global rates of raw materials used in these products they could arrive at fair price of the under invoiced items.


----------



## Neo

*Govt revises export target to $19.2bn​*
KARACHI: Government has revised the export target of current financial year to $19.2 billion from $22.1 billion, Daily Times learnt on Monday.

The target of $22.1 billion was set in Trade Policy 2008-09, however it became evident in April of current fiscal that target is impossible achieve in the current situation when the export sector was facing immense hardships domestically as well as externally.

In the beginning of month of May, Federal Ministry of Commerce (MoC) directed its relevant departments to work out the new export target due to eroding capability of export sector to achieve the task. 

The official documents suggest that during the first ten months of last financial year, 79.3 percent of total export target was achieved and during the corresponding period of current year, 66.8 percent of the target was achieved providing the justification of the downward revision of export target.

Country exported $14.762 billion worth of goods in first ten months of current financial year, and it seemed unable to achieve the remaining export figures in the rest of the months.

Last year, Pakistan exported $19.2 billion worth of goods. In July-April period of current fiscal, the total export posted negative growth of 3.03 percent over the previous year.

The new export target is almost same what Trade Development Authority of Pakistan (TDAP) worked out for the current year when it was tasked to come up with the new target. Following an extensive exercise, TDAP suggested that new export figures would be - more or less same - what the country exported during the last fiscal. 

Officials said that right from the start of current financial year, the export sector was confronted with the global financial crunch, which eroded the demand of imported goods in the USA and EU-the largest trading partners of Pakistan.

Furthermore, the domestic infrastructure problems especially the prolonged power outage caused severe blow to export-oriented export sector in the shape of severe dent in the production of exportable items. The export shipments suffered due to the exporters' inability to meet the export order in time.

Also, the deteriorating security situation in the country has been sending negative signals abroad by portraying a dangerous image of Pakistan in the entire world. 

Foreign buyers, according to officials, are reluctant to visit the country in the precarious security situation, which has been resulting in the loss of future export orders. 

About the export target set in the current trade policy, officials said it was unrealistic right from the beginning because the policy markers were unable to interpret the signals of global financial crisis which started emerging by that time.

So far all the export categories performed dismally particularly the largest export earner textile, leather, sports, surgical and some other manufacturing groups.

Reactions: Like Like:
1


----------



## Neo

*KESC plans to save 220MW through conservation drive​*
** Power utility carried out 7.6 percent average billing last month, claims official​*
KARACHI: The KESC has initiated an energy saving campaign across the city to create awareness amongst the masses regarding energy saving. The KESC plans to save 200MW in two years through the energy conservation campaign. Though the set target looks small, it will save $200 million for the company, said KESC Chief Energy Conservation Officer Asif Siddique while talking to the media at a briefing held at the KESC head office, here on Monday.

We are going to mosques, schools and colleges to tell people about the benefits of conservation of energy, he said.

He revealed that since after the campaign was initiated, KESC has saved 15MW electricity. Regarding the industries as the focal point of the campaign, Farooqui said their teams are visiting industries to advise them to save as much electricity as possible. He said that the Karachi Water and Sewerage Board is presently using 70MW of electricity, adding that most of the energy is wasted due to old machinery at the utility. 

Average billing: KESC Chief Operating Officer Syed Jan Abbas Zaidi during the briefing said that the Karachi Electric Supply Company (KESC) has carried out only 7.6 percent average billing in May 2009, while the rest of bills were issued after proper meter reading.

Replying to a query of journalists regarding complaints of citizens about the average billing method, he said, Its wrong to assume to that KESC is carrying out average billing. Except 7.6 percent consumers, all other subscribers were issued bills after proper meter reading. The average billing is carried out in cases where consumers have no facility of meters due to various reasons, he maintained. He added that the KESC is trying to improve its service standard at their complaint centres.


----------



## Neo

*Donors differ on ADB views: Pakistan needs funding to finance C/A, fiscal deficits on sustainable basis ​* 
ISLAMABAD (June 09 2009): Donors in Pakistan have entered into a policy debate differing with one another on the points of view of achieving stabilisation on the one hand, and addressing exports growth, on the other, to face up to current account deficit problem that arises each time the GDP growth crosses 6-7 percent, say officials. One side of the argument is that the balance of payments crisis can not be addressed just by making exchange rate adjustment.

It is a deep-seated issue and needs a structural answer. A recent publication of Asian Development Bank said: "This suggests that Pakistan's relative poor economic performance cannot be attributed to an overvalued exchange rate. The cause of Pakistan's relatively poor export growth is structural and deep-seated: it is not one that can be quickly and easily solved by an exchange rate adjustment".

Another donor, talking to Business Recorder, differed with this argument and said that Pakistan needs funding to finance its both current account and fiscal deficits on sustainable basis, so that investors, putting money here can have a long-term view of the country.

This is in addition to the exchange rate adjustment. The investors are not sure of repatriating profits or are unsure of secure investment. They would not even step into the market of Pakistan, says another donor, stressing on contradicting ADB's point of view which he said is just focusing on one side of the problem.

ADB's paper further quotes Economic Survey (2007-08), which recommends that its top priority should be "correction of imbalances through shaving off aggregate demand by appropriate policies. In other words, in spite of the high unemployment and the damage this would do to investment, the remedy advocated for the BOP problem is to curtail economic growth.

This would certainly solve the problem, as a slower growth of output would reduce the rate of increase of imports, while exports would be largely determined by the growth of world markets and hence unaffected by the reduction in domestic growth".

The Paper further says that Pakistan is running into, or is actually, experiencing a BOP constraint. However, the solution is not to reduce aggregate demand, but to introduce policies that will increase the growth of exports and thereby obviate the BOP constraint.

Other donors (opposing ADB's view), believe that stabilisation does not prevent growth ultimately, and without achieving stabilisation any country can not have growth, and there is a whole range of policy prescriptions designed by Finance Ministry with IMF, which concentrate on social safety nets and medium-term development framework (MTDB). They also opine that the same stabilisation will induce a higher growth path in medium term.

ADB's paper refers that the heart of the current problem lies in collapse of exports growth, which does not bode well for future growth. For example, since the 1960s "Pakistan's performance is clearly substandard, with only Afghanistan, the Kyrgyz Republic, Mongolia, Sri Lanka, Turkmenistan and Uzbekistan having lower export growth rates.

Other donors also believe that demand management does matter in achieving macro stability which provides spending for gaining better productivity. The government's support in improving productive capacity of industry always matter. In case the government's fiscal side is not balanced, how it would spend on industrial and overall infrastructure? This kind of spending on continuous basis would pave the way for a better investment scenario for local and foreign investors, conclude the officials.

Reactions: Like Like:
1


----------



## Neo

*Cement exports surpass 10 million tons mark ​* 
KARACHI (June 09 2009): The country's cement exports have registered a healthy growth of 50 percent to reach all time high level of 10 million tons during eleven months of the current fiscal year 2008-09 on account of rising international demand, industry sources said.

They said that easy availability of raw material and regional cement shortages played a key role in achieving landmark of highest ever cement exports, while enhancing production capacity by the local cement manufacturers is another reason behind this achievement.

"Local cement manufacturers are taking full advantage of regional shortage and with current achievement Pakistan has become the largest cement exporter country of the region," they said. They said that strong external demand from the Persian Gulf countries and neighbour countries like Afghanistan and India had pushed the country's cement exports, which may touch 11 million tons mark by the end of current fiscal year.

Cement exports have posted a robust increase of 49.47 percent to new peak of 10.163 million tons during July-May of current fiscal year as compared to 6.8 million tons in the same period of last fiscal year. Exports during eleven months are also some 37 percent higher than last fiscal year's exports of 7.716 million tons.

Afghanistan and India are two largest importers of Pakistan's cement, besides Gulf countries. Afghanistan imported 2.83 million tons as compared to 2.54 million tons in same period of 2008. India's cement import from Pakistan stood at 0.599 million tons during the period relative to 0.689 million tons of corresponding period of last fiscal year. Cement exports to other countries surged by 121 percent to 5.84 million tons as against 2.64 million tons in the same period of fiscal year 2008.

Meanwhile, local cement dispatches declined by 15 percent to 17.557 million tons during eleven months as compared to 20.64 million tons in the same period of last fiscal year. Huge supply of cement against the low demand decreased the local dispatches in the local market and due to high competition cement companies are decreasing their prices to capture the market, industry sources said.

Reactions: Like Like:
1


----------



## Neo

*Govt to transfer 2.6m acres to landless farmers in five years​*Wednesday, June 10, 2009

ISLAMABAD: The government has decided to transfer 2.6 million acres of state land to landless farmers, which will provide land to 58 per cent tenants of the country, reveals the Tenth Five-Year Plan (2010-15).

Under the plan, the government will take measures for enhancing provincial autonomy, abolishing the concurrent list, devolving more services to the local level and deepening local government reforms.

Devolution plan 2001 will also be reviewed to ensure effective decentralisation of administrative and financial power of local governments. Judicial reforms that ensure inexpensive and quick justice as well as e-governance and information technology will be given a big push to increase transparency, fair play and make the system faster and user friendly, it added.

According to the approach paper of the 5-year plan, which was approved by the National Economic Council (NEC), the copy of the paper is available with this scribe, civil service reforms inclusive of police would be undertaken to foster professional competence, merit-based induction and market-based salaries. Emphasis will be placed on promoting culture of professionalism, staff rationalisation, enhancing competence, productivity and accountability. Needed action will be taken to revitalise and further strengthen key state institutions including the Federal Board of Revenue, Federal Bureau of Statistics, Securities and Exchange Commission of Pakistan, Competition Commission, Office of the Auditor General, Pakistan Railways and the State Bank in the next five years, it stated. On the issue of transferring land to tenant farmers, the document states that the government decided to transfer 2.6 million acres of state-owned land to landless masses in the next five-year period. While it could provide land to 58 per cent of existing tenant framers, the remaining 42 per cent will be able to buy land through credit and institutional changes in the land market, the document states.

Thus all existing tenant households could become owner operators who could play a strategic role in generating a faster and more equitable agriculture growth. The government can make a significant difference to the position of landless, poor and socially marginalized by ensuring secure tenure or title to residential or homestead land in rural areas, the document states and added that such provision could be a significant non-fiscal measure for enhancing social protection, reducing inequality, and unleashing the productive potential of the poor.

Programme of regularization of Katchi Abadis, which often relate to the regularization of existing settlement on land owned by the government or government owned enterprises such as the Railways should be reviewed, revived and expanded.

On the issue of integrated planning for energy development, the approach paper states that the North of Pakistan and the Indus river system has the vast potential of generating as much as 50,000MW of hydro electricity.

Sites are available for the very large to small storages-cum electricity generation sites and run of river and canal sites. The vast reserve of coal at Thar estimated at 185 billion tons awaits mining and exploitation.

There are plans to set up two to three plants of 1,000 to 1,200MW each, based on imported coal, in the coastal region of Sindh and Balochistan.

To address the issue of energy shortages, the strategy for the tenth plan will be designed around exploitation of indigenous resources, energy security, conservation and development of alternative energy sources.

The strategy will focus on fast track development of Thar coal through environment friendly technology not using open-pit exploitation methods, fast construction of gas pipeline to import Iranian gas, develop an energy trade corridor with Gwadar as hub and rationalization of power tariff to lower the cost without affecting efficiency.

Serious infrastructure constraints have, however, emerged especially in the energy sector which has adversely affected utilization of scarce resources and future economic growth prospects. Energy shortages appear on account of inability to pay importers, inefficient use of scarce energy sources, improper pricing that encourages over consumption, inappropriate gas policy that does not reflect declining reserves and best use of scarce gas resources. These issues will be systemically addressed in the 10th 5-year plan, it added.

Reactions: Like Like:
1


----------



## Neo

*Pakistan to climb ladder of industrialisation: PM​*Wednesday, June 10, 2009

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani on Tuesday said the Ministry of Industries and Production has a key role to play in creating an environment for industrial growth in the country.

Pakistan, with a consumer market of 170 million people, abundance of raw material, cheap labour and entrepreneurship is endowed with all the requisites to climb the ladder of industrialisation, he said.

Gilani expressed these views at the Ministry of Industries and Production. He also stressed for an early formulation of an industrial policy. He called upon the need for and up-gradation of industry while ensuring transparency to make it competitive.

Gilani while expressing concern over the output of Pakistan Steel directed the ministry to come up with a business plan to make it a productive unit that is financially sound and economically sustainable. He said industrialisation in the country is not only necessary to generate jobs and economic activities for the poor and meet industrial needs of 170 million people but also to claim Pakistans rightful share in the global market.

The Prime Minister directed the ministry to achieve the target of setting up utility stores in each union council. Regarding complaints about supply and sale of sub-standard consumer items at utility stores, he directed the corporation to professionalise its working and ensure both quality and quantity of consumer supplies available.

During the meeting, it was observed that in order to reinvigorate the functioning of PIDC, private sector involvement is a must besides linking of various small technological institutions with some major institutions while focusing on Research and Development.

Reactions: Like Like:
1


----------



## Neo

*Leather sector exports fall 20pc​*Wednesday, June 10, 2009

LAHORE: Exports of leather sector have dropped 20.42 per cent in 10 months (July-April) of fiscal year 2008-09 and the lost market has been captured by Indian and Bangladeshi leather producers.

According to official data, export of leather fell 26.76 per cent in terms of value and 8.41 per cent in terms of quantity. Pakistan exported $24.79 million worth of leather across the world in July-April 2008-09 compared to exports worth $33.86m in the corresponding period last year.

Export of leather apparel and clothing declined 27.22pc to $32.61m against exports of $44.81m last year. Export of leather gloves, which have a good share in the world market standing at second position due to their high quality, also fell 2.84pc to $12.29m compared to last years $12.65m.

However, export of footwear, an allied industry of leather, substantially rose by 12.41pc to $9.04m compared to $8.04m last year.

On the other hand, Indian leather and leather garment exports increased by 27pc during the period under review. Bangladesh also made record exports of leather products, especially footwear which rose by 30 per cent.

Talking about the decline in export of leather and leather products, Pakistan Tanners Association Central Chairman Agha Saiddain said neighbouring countries India, China and Bangladesh had given incentives to their industry.

India, for example, announced an average 7.5pc duty relief for all sectors of leather while Bangladesh was paying 15pc on export of leather, leather garments, footwear and leather goods. China was giving 7.5 to 110pc relief on finished leather, 5pc and other benefits on leather garments and 11pc on leather footwear.

Contrary to that, he said, Pakistans government was giving only 0.80pc relief on finished leather of sheep and goat, 1.17pc on finished leather of cow and buffalo, 2.38pc on leather garments, 1.56pc on leather gloves and less than 2pc on leather footwear. In such a scenario, it is impossible for the industry to compete with protected industries of competitors, Agha remarked.

He attributed the increase in Indian and Bangladeshi exports to good policies of these countries, which helped their industries sustain the global recession. Both countries, he added, had announced a relief package to combat with the global economic meltdown.

He said the PTA had been requesting the government for incentives but so far the authorities concerned had not shown any positive signal about a relief package and providing a level-playing field for the leather industry.


----------



## Neo

*Tax measures may enhance revenues by Rs170bn​*Wednesday, June 10, 2009

ISLAMABAD: The government is going to announce various taxation measures in the upcoming budget in order to generate additional revenues of Rs160 to Rs170 billion.

In this regard, it will impose general sales tax on certain services, capital gains tax on real estate transactions, fixed-rate carbon tax on petroleum products and withdraw income tax and sales tax exemptions in order to enhance the tax-to-GDP ratio to 9.6 per cent, it is learnt. According to the plan drawn by budget-makers, which was shared with this scribe by high officials, the government is also considering increasing withholding tax on withdrawal of cash exceeding Rs25,000 from banks.

The government also aims to generate Rs20 billion by bringing certain services under the GST net, Rs10 billion from capital gains tax and Rs80 to Rs90 billion from carbon tax.

The taxation measures including broadening the tax base and eliminating income and sales tax exemptions as well as revising upward excise duty on various items are aimed at jacking up the tax-to-GDP ratio by 0.8 per cent to 9.6pc in the next fiscal year from 8.8pc in the outgoing fiscal year, a senior official at the Finance Division said.

The government is going to set revenue collection target in the range of Rs1,390 to Rs1,400 billion for next fiscal year 2009-10. The provinces, the official said, had refused to distribute revenues of Rs20 billion through GST on services on the basis of 50:50 and offered the government to deduct 2pc collection charges and gave back the major chunk to the federating units.

The center and provinces are inching towards an agreement under which the FBR will be allowed to collect GST on services on behalf of provinces and returned them back after deducting collection charges in the range of 5 per cent, said the official.

The FBR has also identified certain services such as consultant, engineers, doctors, lawyers, accountants, medical diagnostic laboratories, hotels, restaurants, marriage halls, clubs, advertisements, brokers and commission agents etc, which can be brought under the GST net in the Finance Bill 2009-10.

The government wants to collect Rs80 to 90 billion by replacing Petroleum Development Levy (PDL) with fixed rate Carbon Tax on per liter basis in the next budget. Although, the Federal Board of Revenue (FBR) is eyeing to collect Rs1,180 billion by June 30, 2009 but the Finance Ministry is projecting that the board will be able to touch Rs1,150 billion by the end of the day, resulting into falling of tax to GDP ratio to below 9 per cent and standing at 8.8 per cent of the GDP, touching the lowest ebb in the last one decade. On the basis of Rs1,150 billion projection for the outgoing fiscal year, the tax collection target of Rs1,390 to Rs1,400 billion requires additional revenues of Rs240 to Rs250 billion in the next budget.

The nominal growth (real GDP growth at 3.3pc+ inflation at 9pc) will be hovering around 12.3 per cent in the next fiscal year. For achieving Rs1,406 billion, the government will have to take taxation measures to achieve the desired results.

There was another proposal to increase GST rate to 17 per cent from existing 16 per cent that was basically discussed with the IMF. But this proposal was turned down by authorities concerned especially Adviser to the PM on Finance Shaukat Tarin and Secretary Finance Salman Siddiq on the pretext that it will further determine business activities of formal sector.

When former Member Fiscal Research Dr Aather Maqsood was contacted, he said that there is potential gap of Rs500 billion tax revenues in all four major taxes i.e. Direct Taxes, Sales Tax, Federal Excise Duty and Custom Duty which can materialize by bringing efficiency in the FBR.


----------



## Neo

*China, India, Bdesh capturing Pakistan leather export market​*
KARACHI: China, India and Bangladesh grabbed around one-third leather export share of Pakistan on the relief package announced by their respective governments to combat with global recession.

Talking to Daily Times Tuesday, chairman Pakistan Tanners Association (PTA),

Agha Saiddain said the sharp downward trend may turn the third largest exporting industryafter textile and riceinto a quagmire.

Pakistans leather exports are struggling and exports figures uptill April 2009 showed decline of 26.76 percent. The position of exports of leather garments is even worst where the decline is more than 27 percent, Agha said.

He said the exports of leather have dropped by 21 percent in current financial year, and the industry was at the verge of total collapse.

He said during fiscal year 2007-08, the countrys export of leather stood at $1.24 billion and during ten months of 2008-09 fiscal year, the decline of 21 percent in exports is alarming.

Pakistan is one of the best producers of finished leather but price is the main concern at international level, especially during global recession. On the other hand leather and leather garment exports have increased by 27 percent on average in India. The increase in export of footwear is even higher.

The chairman PTA said Bangladesh has also made record exports specially their performance in footwear sector was excellent and increase is above 30 percent.

He attributed this increase in India and Bangladesh to the policy makers of these competing countries of Pakistan.

He said both of the countries have announced relief package to combat with global recession. India has announced average 7.5 percent incentives in all sectors of leather and Bangladesh is paying 15 percent on export of leather, leather garments, and footwear and leather goods.

He said we have been requesting authorities about these incentives but uptill now the government has not announced any relief package and level playing field to our competing countries.

The exhibitors were disappointed and depressed specially while knowing about 11th leather plan of India in which they have announced a grant of Rs 5 million to Rs 20 million, which is not returnable.

The duties and taxes on Pakistani leather export to China have further aggravated the situation.

He said the list would be revised in July-August this year and authorities should include finished leather of Pakistan in the FTA list.

He said we could still regain our ground if Trade Policy brings some relief and hope to the leather industry.

Due to poor policies of our government, China is the main beneficiary of US market and Pakistanis export of shoe, garments, upholstery and leather is negligible as compared to China, India, Italy and Turkey.

The leather industry of Pakistan is second largest export industry with total export value of $1.24 billion (2007-08) and the industry can grow by cent percent in three years and to the level of $5.00 billion in next 10 years if provided level playing field with its major competing countries, he added.


----------



## Neo

*Economy grows by two percent against 4.5 percent target​* 
ISLAMABAD (June 10 2009): Pakistan's economy grew by only 2 percent in 2008-09, against the target of 4.5 percent, due to poor performance of almost all sectors, coupled with internal and external pressures of extreme nature. Agriculture has been the only sector, which demonstrated some growth, mainly because of better weather conditions and good support price to wheat growers.

"The intensification of war on terror into settled areas, coupled with other domestic factors like political turmoil and an unstable law and order situation, acute energy shortages, supply shocks, augmented by external factors like worsening of international financial crisis feeding into shrinkage of external demand and uncertainty about global recession, tested the resilience of economic fundamentals," says the Economic Survey to be formally launched later.

The country's economic managers failed to prove their competency, as most of the targets they had set for the outgoing fiscal year were missed during the first nine months. These targets were with respect to privatisation, fiscal policy, monetary policy, inflation, poverty, overall manufacturing, large-scale manufacturing, exports, imports, and trade balance.

Only agriculture sector depicted a stellar growth of 4.7 percent, as compared to 1.1 percent witnessed last year and the target of 3.5 percent for the year. The overall FBR tax collection remained less than satisfactory and witnessed deceleration in real terms. Resultantly, the FBR tax collection to GDP ratio is likely to deteriorate to around 9 percent of GDP as against the target of bringing it in the vicinity of 10 percent of GDP.

Last year, the short term acting Finance Minister, Naveed Qamar, flanked by the incumbent Minister of State for Finance, Hina Rabbani Khar, had raised his arms reflective of deep commitment, and uttered the catchphrase "our accountability will start from the federal budget 2008-09"; but today he is no longer the person who is mandated to respond to questions about the performance of his government.

This time, Advisor to Prime Minister on Finance, Shaukat Tarin, with the same lady Hina Rabbani Khar will present his rationale for failure on almost all macroeconomic fronts. According to the Economic Survey, the economy has lost significant growth momentum owing to massive contraction in the industrial sector.

In the stabilisation mode in an inhospitable domestic and international environment the economic growth of 2.0 percent, achieved during 2008-09, seems reasonable albeit it implies definite slippage against 4.1 percent growth of last year and this year's target of 4.5 percent. That it should be looked in the backdrop of global recession where positive growth is a rare exception, is the Finance Ministry's excuse.

The Finance Ministry concedes that the economic growth might not be comparable with consumption-led average growth of an average of 5.4 percent annually for the last eight years. The Survey shows that the economy moved to a higher growth trajectory during 2002-07 on the back of heavy reliance on external financing and use of sale proceeds from some public sector assets to meet growing current account deficit.

The poor resource mobilisation efforts remained the hallmark of the economic policy in this period and exacerbated vulnerabilities to external shocks. The domestic factor behind the higher growth for the Musharraf years was a consumer boom on the back of enhanced access to credit which was likely to slow down once the demand for durables reached saturation level.

The productive capacity of the economy remained alien to this higher growth and new industrial or energy capacity never received due attention. The growth of 2008-09 must be viewed in the backdrop of regional and international developments where real GDP in Pakistan's main trading partners is estimated to contract by almost 3 percent on average in 2009, depressing the external demand for Pakistan's exports.

*III. SECTORAL REVIEW OF PERFORMANCE (2008-09)

GROWTH AND INVESTMENT*

-- Real GDP grew by 2.0 percent in 2008-09 as against 4.1 percent last year and growth target of 4.5 percent.

-- The modest growth of just 2.0 percent is shared between Commodity Producing Sector (CPS) (0.08) and services sector (1.92). Within the CPS, agriculture contributed 1.0 percentage points, or 50.1 percent, to overall GDP growth (a significant increase from its contribution of only 5.0 percent last year) while industry dragged 0.92 percentage points or 46.1 percent to neutralise positive contribution of the agriculture. In the services sector, major contributions to GDP growth came from transport, storage & communication (0.3 percentage points or 14.6 percent), wholesale & retail trade (0.7 percentage points or 27.1 percent) and social services (0.8 percentage points or 38.6 percent).

*AGRICULTURE:*

-- Agriculture sector has depicted a stellar growth of 4.7 percent as compared to 1.1 percent witnessed last year and target of 3.5 percent for the year. Major crops accounting for 33.4 percent of agricultural value-added registered an impressive growth of 7.7 percent as against a negative growth of 6.4 percent last year and a target of 4.5 percent. The livestock sector grew by 3.7 percent in 2008-09 as against 4.2 percent last year.

-- Output in the manufacturing sector contracted by 3.3 percent in 2008-09 as compared to expansion of 4.8 percent last year and overambitious target of 6.1 percent. Small and medium manufacturing sector maintained its healthy growth of last year at 7.5 percent.

-- Large-scale manufacturing depicted contraction of 7.7 percent as against expansion of 4.0 percent in the last year and 5.5 percent target for the year. The massive contraction has been because of acute energy outrages, security environment and political disruption in March 2009.

*SERVICES SECTOR*

-- The services sector grew by 3.6 percent as against the target of 6.1 percent and last year's actual growth of 6.6 percent.

-- Value-added in the wholesale and retail trade sector grew at 3.1 percent as compared to 5.3 percent in last year and target for the year of 5.4 percent.

-- Finance and insurance sector witnessed a slowdown to 12.9 percent in 2007-08 but registered negative growth of 1.2 percent in 2008-09. The performance of this sector shows that Pakistan's financial sector is integrated in the world economy and is feeling the heat of the financial crisis plaguing international financial markets.

-- The Transport, Storage and Communication sub-sector depicted a sharp deceleration in growth to 2.9 percent in 2008-09 as compared to 5.7 percent of last year.

*PER CAPITA INCOME:*

-- Pakistan's per capita real income has risen by 2.5 percent in 2008-09 as against 3.4 percent last year. Per capita income in dollar terms rose from $1042 last year to $1046 in 2008-09, thereby showing marginal increase of 0.3 percent.

*PRIVATE CONSUMPTION EXPENDITURE*

-- Real private consumption rose by 5.2 percent as against negative growth of 1.3 percent attained last year. However, gross fixed capital formation could not maintain its strong growth momentum and real fixed investment growth contracted by 6.9 percent as against the expansion of 3.8 percent in the last fiscal year.

*INVESTMENT:*

-- Total investment declined from 22.5 percent of GDP in 2006-07 to 19.7 percent of GDP in 2008-09. Fixed investment decreased to 18.1 percent of GDP from 20.4 percent last year. Private sector investment was decelerating persistently since 2004-05 and its ratio to GDP declined from 15.7 percent in 2004-05 to 13.2 percent in 2008-09. Public sector investment to GDP ratio has risen persistently from 4.0 percent in 2002-03 to 5.6 percent in 2006-07. However, it declined to 4.9 percent in 2008-09.

-- National savings rate has nose-dived to 14.4 percent of GDP in 2008-09 as against 13.5 percent of GDP last year. Domestic savings also declined substantially from 16.3 percent of GDP in 2005-06 to 11.2 percent of GDP in 2008-09.

*MONETARY POLICY*

-- The SBP kept its tight monetary policy stance in the period July 1, 2008-April 20, 2009. The policy rate was adjusted upward in November 2008 to shave off some aggregate demand from the economy and kept constant in January 2009. However, it adjusted downward by 100 bps on April 20, 2009.

-- During July 1, 2008-May 16, 2009, money supply (M2) expanded by 4.6 percent against the target expansion of 9.3 percent for the year, and last year's expansion of 15.3 percent. The reserve money grew by 2.4 percent as against expansion of 13.2 percent.

-- Net domestic assets (NDA) increased by Rs 443.8 billion as compared to increase of Rs 702.5 billion last year, thereby showing an increase of 11.0 percent in this period, whereas last year the growth in the comparable period was 22.8 percent.

-- Net foreign assets (NFA) recorded a contraction of Rs 227.3 billion against the contraction of Rs 322.8 billion in the comparable period of last year.

-- Government borrowing for budgetary support has recorded an increase of Rs 332.2 billion as compared to Rs 361.0 billion in the comparable period of last year. The SBP financing has shown a net increase of Rs 198.2 billion and financing from scheduled banks witnessed a net increase of Rs 134.0 billion during July 1, 2008-May 16, 2009.

-- Credit to private sector witnessed a net disbursement of Rs 26.8 billion as compared to Rs 369.4 billion in the comparable period of last year.

-- Weighted average lending rate witnessed a decline from 15.5 percent in October, 2008 to 14.3 percent in March, 2009. Weighted average deposit rate, on the other hand, decreased from 9.5 percent in October 2008 to 8.0 percent in March 2009, which implies increase in the spread amid intensive deposit mobilisation efforts on the part of the banks. The weighted average yields on 6 months T-bill declined by almost 250 basis points to 11.5 percent in March 2009 as against 14 percent in November 2008 but inched up to 12.4 percent in April 2009.

*INFLATION*

-- The inflation rate as measured by the changes in Consumer Price Index (CPI) stood at 22.3 percent during July-April 2008-09, as against 10.3 percent in the comparable period of last year. However, year-on-year inflation decelerated from 25.3 percent in August 2008 to 17.2 percent in April 2009.

-- The food inflation is estimated at 26.6 percent and non-food 19.0 percent against 15.0 percent and 6.8 percent in the corresponding period of last year.

-- The increase in inflation rate during the current year 2008-09 is attributable to the increase in food price inflation which has been due to increase in prices of edible oil, pulses, rice, milk, poultry, meat, wheat, wheat flour, fresh vegetables and fruits.

-- On current trends, and barring any adverse shocks, it is expected that the average inflation for the year (2008-09) as measured by CPI will be close to 21.0 percent.

-- The core inflation which represents the rate of increase in cost of goods and services excluding food and energy prices also went up from 7.5 percent to 20.3 percent.

-- The Wholesale Price Index (WPI) increased by 21.4 percent, as against 13.7 percent of last year.

-- The Sensitive Price Indicator (SPI) has recorded an increase of 26.3 percent during July-April 2008-09, as against 14.1 percent of last year.

*FISCAL POLICY*

-- The government decided in the economic stabilisation program to adhere to the fiscal deficit target reverently and, during the first nine months of the current fiscal year, the fiscal deficit hovered around 3.1 percent of the projected GDP for 2008-09 which is consistent with annual fiscal deficit target of 4.3 percent. The fiscal improvement has largely been based on reduction of oil subsidies and a cut in development spending. All meaningful efforts to expand revenues, particularly by broadening the tax base, will only work in the medium term.

-- The financing patterns of fiscal deficit remained dominated by the banking system, which financed 85 percent of the fiscal deficit and only 15 percent were financed by the non-bank sources. The government remained prudent and over-performed with respect to the SBP financing limit allowed by the Economic Stabilisation Program.

-- The overall FBR tax collection remained less than satisfactory and actually witnessed deceleration in real term. Resultantly, the FBR tax collection to GDP ratio is likely to deteriorate to around 9 percent of GDP as against the target of bringing it in to the vicinity of 10 percent of GDP.

-- Tax Revenue collected by the FBR amounted to Rs 898.6 billion during the first ten months (July-April) of the current fiscal year, which is 17.7 percent higher than the net collection of Rs 763.6 billion in the corresponding period of last year.

-- The net Direct tax collection was estimated at Rs 332.5 billion against the target of Rs 496 billion which implies a growth of 16.9 percent during July-April 2008-09.

-- Indirect taxes grew by 18.2 percent during July-April 2008-09 and accounted for 62 percent of the stake in overall tax revenue. The sales tax collections grew by 22.2 percent and stood at Rs 358.9 billion as against Rs 293.6 billion in comparable period of last year. The net customs duty collection inched up from Rs 114.9 billion in 2007-08 to Rs 117.2 billion in 2008-09, thereby showing modest growth of 2.1 percent. The net collection of federal excise stood at Rs 90.0 billion during July-April 2008-09 as against Rs 70.6 billion in the corresponding period of last year, thereby showing an increase of 27.5 percent.

-- Despite a decline in fiscal deficit in the first nine months of 2008-09, the growth in domestic debt accelerated, reflecting non-availability of financing through external sources. The stock of domestic debt grew by Rs 484.4 billion during July-March 2008-09. This strong growth in the domestic debt reflects non-realisation of privatisation proceeds and reduced availability of net external financing due to increase in external debt repayments on maturing stock of foreign currency bonds. The main contribution came from 17.5 percent rise in floating debt, which increased by Rs 286 billion. The stock of permanent debt increased by Rs 44 billion. Unfunded debt witnessed a growth of 15.1 percent in July-March 2008-09 mainly because of uncertainty in the financial market and very attractive rates offered by NSS schemes.
*
PUBLIC DEBT BURDEN*

-- Public debt burden continued to decline rather sharply over the last seven years with significant improvement in fiscal situation. However, public debt witnessed a reversal of trend amid worsening fiscal situation in the last fiscal year.

-- The public debt-to-GDP ratio, which stood at almost 55.5 percent in end June 2007, increased to 57.4 percent by the end of June 2008 mainly because of high fiscal deficit resulting in massive borrowing. However, by end-March 2009 public debt declined to 55.5 percent of the GDP for the year mainly because of better fiscal discipline displayed during 2008-09. In absolute terms, public debt grew by 23.2 percent in the first nine months (July-March 2008-09).

*EXTERNAL SECTOR*

-- Exports were targeted at $19.0 billion, or 6.9 percent lower than last year. Exports started to face heat of global recession since January 2009 and the contraction of world demand for major exports exacerbated export contraction. The exports witnessed negative growth of 2.6 percent--declining from $16.4 billion of last year to $16.0 billion in July-April 2008-09. However, exports fell by 25.9 percent in April 2009 over April 2008 which is really worrying for the economy.

-- Imports registered a negative growth of 9.8 percent in July-April 2009. The imports stood at $26.77 billion as against $28.715 billion in the comparable period of last year. The growth in imports reflects impact of substantial fall in oil and food imports in monetary terms and these two items were responsible for 80 percent of additional import bill of last year. Import compression measures, coupled with massive fall in international oil prices, have started paying dividends and imports witnessed marked slowdown during the last two months.

-- Trade Balance The merchandise trade deficit improved by 12.3 percent and declined from $10.7 billion in July-April 2008-09 to $12.3 billion in July-April 2008-09. The substantial decrease of 9. 8 percent in imports outstripped otherwise significant decrease of 3.0 percent in export growth which caused the trade deficit to improve by 12.3 percent.

-- Workers' Remittances Workers' remittances totalled $6.4 billion in July-April 2008-09 as against $5.3 billion in the comparable period of last year, depicting an increase of 19.5 percent. Deep recession in the US economy, which constitutes close to one-third of Pakistan's remittances, started taking its toll and witnessed negative growth of 1.9 percent. The trend will be expected to continue in the months to come. However, overall outlook of remittances from other source countries is positive.

-- Current Account Balance Pakistan's current account deficit shrank by 23.5 percent during July-April 2008-09. Current account deficit shrank to $8.5 billion as against $11.2 billion last year. In the month of February 2009, the current account witnessed a surplus which is a rare development in Pakistan economy. This was first monthly surplus since June 2007. It turned to deficit in March and April 2009.

-- Foreign Exchange Reserves declined substantially in the initial months of 2008-09, dropping from $11.4 billion at end-June 2008 to a low of $6.4 billion by November 25, 2008. This depletion of reserves in the five months was lower than fall in forex reserves for the whole of 2007-08. The subsequent partial recovery in November 2008 owed essentially to the inflow of $3.1 billion from the IMF following Pakistan's entry into a macroeconomic stabilisation program. The import coverage ratio declined to an uncomfortable level of 9.1 weeks as of end-October 2008 from 16.8 weeks of imports as of end-June 2008, but it improved to 18.0 weeks of imports by end-April 2009.

-- Exchange rate after remaining stable for more than 4 years, lost significant value against the US dollar and depreciated by 21 percent during March-December 2008. Most of the depreciation of rupee against dollar was recorded post-November 2007 owing to combination of factors like political uncertainty, trade related outflows and speculative activities. With successful signing of Standby arrangement with the IMF, the rupee regained some of its lost value. With substantial import compression and revival of external inflows from abroad in the coming months of the fiscal year, the exchange rate is forecast to remain stable at around Rs 80-82 per dollar.

-- The overall foreign investment. During the first ten months (July-April) of the current fiscal year foreign investment declined by 42.7 percent and stood at $2.2 billion against $3.9 billion in the comparable period of last year.

-- Foreign direct investment (private) showed some resilience and stood at $3205.4 million during the first ten months (July-April) of the current fiscal year as against $3719.1 million in the same period of last year thereby showing a decline of 13.8 percent.

-- Private portfolio investment on the other hand showed an outflow of $451.5 million as against an inflow of $98.9 million during the comparable period of last year, showing a decline 25.7 percent.

-- The US kept its distinction of being the largest investor with 23.2 percent stake in the FDI. Other big investors originated from Mauritius (10.0 percent), Singapore (7.7 percent), UK (6.9 percent), Switzerland (6.6 percent), UAE (5.3 percent) and Hong Kong (3.9 percent).

-- The communication sector (including Telecom) spearheaded the FDI inflows by accounting for 27.3 percent stake during July-April 2008-09, followed by financial business (22.4 percent), energy including oil & gas and power (22.7 percent), and trade (4.9 percent). The current wave of uncertainty in global demand and economic activity in the country has resulted in a major backlash on FDI inflow groups namely, communication, financial business and oil & gas exploration accounted for almost 67 percent of FDI inflows in the country. The communication sector (including Telecom) spearheaded the FDI inflows by accounting for 30.4 percent stake during 2007-08, followed by financial business (22.6 percent), and energy including oil & gas and power (21.5 percent).

-- External debt and liabilities (EDL) Pakistan's total external debt increased from US $46.3 billion at end-June 2008 to US $50.1 billion by end-March 2009, an increase of US $3.8 billion or 8.2 percent. In relative terms, EDL as percentage of GDP increased from 28.2 percent at end-June 2008 to 29.8 percent by end-March 2009, an increase of 1.6 percentage points.

-- The country's debt burden is also defined as external debt and liabilities as percentage of foreign exchange earnings increased from 124.3 percent by end-June 2008 to 144.3 percent by end-March 2009.

The overall foreign investment during the first ten months (July-April) of the current fiscal year declined by 42.7 percent and stood at $2.2 billion as against $3.9 billion in the comparable period of last year. Foreign direct investment (private) has shown some resilience and stood at $3205.4 million during the first ten months (July-April) of the current fiscal year as against $3719.1 million in the same period of last year, thereby showing a decline of 13.8 percent. Private portfolio investment on the other hand showed an outflow of $451.5 million as against an inflow of $98.9 million during the comparable period of last year showing a decline of 25.7 percent.

The domestic production of fertilisers during the first nine months (July-March 2008-09) of the current fiscal year was up by 3.6 percent as compared with corresponding period of last year. On the other hand, the import of fertiliser decreased by 51 percent, and the total availability of fertiliser also decreased by 11.9 percent during the two comparable periods namely July-March 2007-08 and July-March 2008-09. Agricultural loans, amounting to Rs 151.9 billion, were disbursed during July-March, 2008-09 as against Rs 138.6 billion during the corresponding period of last year, thereby registering an increase of 9.6 percent.

*MANUFACTURING AND MINING*

-- Manufacturing sector is the second largest sector of the economy, contributing 18.4 percent to GDP. This sector has recorded its weakest growth in a decade during current fiscal year. Overall manufacturing posted a negative growth rate of 3.3 percent during the current fiscal year against the target of 6.1 percent and 4.8 percent of last year.

Large-scale manufacturing (LSM), accounting for almost 70 percent of overall manufacturing, witnessed a broad-based decline of 7.7 percent against the revised growth target of negative 5.0 percent during July-March 2008-09. Main contributors towards this broad based decline were the impact of severe energy shortages, deterioration in domestic law and order situation, sharp depreciation in rupee vis-à-vis US dollar and, most importantly, weak external demand on the back of global recession coupled with slowdown in domestic demand. The increasing trend in inflation also affected consumers to curtail expenditure on durable goods.

-- Textile sector, being an export-oriented industry of Pakistan and more prone to international demand shocks, has been under severe stress amid a global recession. However, textile production declined slightly by 0.7 percent over the same period of last year. The textile sector was badly hit by power shortages and weak external demand.

Both cotton yarn and cotton cloth industries, with the largest share of the textile sector, posted negative growth of 0.3 percent during the first nine months of current financial year.

-- The sustained growth in recent years in cement industry has been an outcome of increase in its production capacity and exploitation of export markets. The cement sector posted a growth rate of 4.71 percent during the current fiscal year. Cement exports increased by 48.8 percent.

-- Fertiliser industry also posted positive growth due to increase in production.

-- The Steel Mill is producing coke, pig iron, billets, hot rolled coils/sheets, cold rolled coils/sheets, galvanised sheets, etc. The performance of steel mill was unsatisfactory during the current fiscal year. The production value slid down from Rs 11133 million in 2007-08 to Rs 9971 million in the current financial year, witnessing a decrease of 10.44 percent.

Mineral potential of Pakistan, though recognised to be excellent, is inadequately developed as its contribution to GDP at present stands at 2.4 percent. During the current fiscal year (July-March 2008-09), the mining and quarrying sector registered almost flat growth rate ie 0.24 percent as against 3.0 percent of last year and a target of 4.5 percent for the current year.

The growth rate of this sector declined sharply due to substantial diminishing trend in the production of Magnesite (51.3percent), Sluphere (10.3percent) and Dolomite (4.6percent). During the current fiscal year, the Privatisation Commission completed the transction of Hazara Phosphate Fertiliser Limited (HPFL), fetching Rs 1340.02 million.

Smeda plays a vital role in creating market oriented economic growth, employment opportunities and reducing poverty. As many as 16 projects, amounting to Rs 1680 million, have been approved for implementation by Smeda.

*FISCAL DEVELOPMENT* The severity of the macroeconomic imbalances in the last fiscal year once again reinforces the importance of fiscal prudence for sustainable economic growth. The hangover from 2007-08 continued to haunt adjustment efforts. The fiscal consolidation efforts faced headwinds like deteriorating security environment, domestic political uncertainties along with the deepening of the global financial crisis and overall depressed macroeconomic environment.

The unanticipated persistence of inflationary pressures on the economy kept fiscal policy options under check. The shrinking revenues constricted government's ability to pursue counter cyclical policy.

There has been significant improvement in fiscal performance during 2008-09 due to the policy shift, with the overall fiscal deficit estimated to have dropped to 4.3 percent of annual GDP. The fiscal improvement in 2008-09 has been largely based on reduction of oil subsidies and a slash on development spending.

Going forward, Pakistan needs a substantial increase in resource base to augment its development efforts, and fiscal consolidation efforts has to come from enhanced revenue base because we have already exhausted options for expenditure cuts. Pakistan's future economic development crucially hinges upon additional resource mobilisation and, for this end, extending the tax base to unexplored sectors is very crucial.

The overall fiscal balance has recovered from a sizeable slippage of 2007-08 amid substantial decline in revenues and elimination of some subsidies like on petroleum products. However, major contribution should come from additional resource mobilisation.

Notwithstanding all lacklustre and half-hearted attempts to reform tax administration and procedures, the tax-to-GDP ratio fluctuated in a narrow band of 10 to 11 percent for almost one decade. In the current fiscal year, the potential risk exists of tax-to-GDP ratio below 10 percent of GDP for the first time in the last two decades.

On revenue side, tax-to-GDP and hence, revenue-to-GDP, ratios either remained stagnant or showed a decline, owing mainly to structural deficiencies in the tax system and administration, both at federal and provincial government levels. The expenditure of the government in relation to GDP exhibited similar pattern, with total expenditures showing an overall decline since the beginning of the 1990s.

However, in 2008-09 total revenue as percentage of GDP slightly recovered, due to a marginal improvement in non-tax revenues as percent of GDP. Total revenue is expected to reach Rs 1910 billion, as compared to Rs 1499.5 billion during the 2007-08.

The FBR revenue collection for the fiscal year 2008-09 was targeted at Rs 1,250 billion at the time of presentation of the Federal Budget 2008-09. Tax collection during the first ten months (July-April) of the current fiscal year amounted to Rs 898.6 billion, which is 17.7 percent higher than the net collection of Rs 763.6 billion in the corresponding period of last year.

The tax collection performance felt the heat of slowing economy and falling imports. Customs duty collection deviated from its recent past track record of high growth mainly because of the fact that dutiable imports underwent negative growth. Notwithstanding its meagre share even in indirect taxes, federal excise duty collections registered a vibrant growth of 27.6 percent.

The sales tax collections are also relying heavily on imports and sales tax at import stage witnessed marginal growth. On the other hand, 47 percent growth in sales tax on domestic economic activity helped it to grow overall by 22.2 percent. When viewed in the backdrop of 23 percent growth in national income, the growth of 16.9 percent in direct tax looks dismal. The overall FBR tax collection remained less than satisfactory and actually witnessed deceleration in real terms.

Resultantly, the FBR tax collection to GDP ratio is likely to deteriorate to around 9 percent of GDP as against the target of bringing it into the vicinity of 10 percent of GDP. Apart from FBR revenue, total tax revenue growth also lagged behind the growth in nominal GDP, as it exhibited a decline in tax-to-GDP ratio from 10.3 percent in 2007-08 to around 10 percent in 2008-09.

The budgeted total expenditure for the fiscal year 2008-09 was Rs 2391 billion, which is 4.9 percent higher than last year's revised estimate. On the other hand, current expenditures were envisaged to remain more or less stagnant at Rs 1876 billion.

The stake of federal government in the current expenditure was to the extent of Rs 1359 billion and the remaining Rs 517 billion were earmarked for provincial governments. Development expenditure (after adjusting for net lending) was targeted at Rs 396 billion in 2008-09, which is up by 7 percent in comparison to last year. On the basis of revenue and expenditure projections, the overall fiscal deficit is estimated at Rs 562 billion or 4.3 percent of GDP as against 7.4 percent last year.

Interest payments surpassed their budgeted level by a significant margin. A sum of Rs 557 billion was budgeted for interest payments in 2008-09. The year is likely to end with interest payments of Rs 618 billion which are higher by Rs 61 billion over the budgeted amount.

The current expenditure overrun has become the norm because of intensification of war on terror and spike in security related expenditure in the last two years This is feeding into a significant gap between budgeted and estimates in current expenditure.

The current year has witnessed some deceleration in non-interest, non-defence expenditure. However, to follow fiscal deficit religiously, the government has to go an extra mile by development expenditure cutbacks. Notwithstanding this downturn, the growth in current expenditure remained strong. Pakistan's fiscal adjustment experience over the years suggests downward rigidity in current expenditure and much of the effort has to come from either additional revenue mobilisation or development expenditure cutbacks. In case of any eventuality of revenue shortfall the development expenditure is the prospective candidate to bear the brunt of adjustment.

*MONEY & CREDIT* Monetary Policy stance of the SBP has undergone considerable changes during the last eight years, gradually switching from an easy monetary policy to the current aggressive, tight monetary policy stance depending on the inflationary situation in the country.

During 2007-08, the SBP continued with tight monetary policy stance, thrice raising the discount rate and increased the Cash Reserve requirement (CRR) and Statutory Liquidity Requirement (SLR). During H1-FY08, the SBP raised the policy rate by 50bps to 10 percent effective from August 1, 2007.

Furthermore, the SBP zero rated the CRR for all deposits of one year and above maturity to encourage greater resource mobilisation of longer tenure and 7 percent CRR for other demand and time liabilities. In H2-FY08 the SBP further tightened Monetary Policy by raising discount rate by 50bps to 10.5 percent. Furthermore, the CRR was raised for deposits up to one year maturity by 100bps to 8 percent while leaving term deposits of over a year zero rated.

The objective was to give incentives to commercial banks to mobilise long-term deposits. In the light of continued inflationary build-up and increasing pressures in the foreign exchange market. The SBP announced a package of monetary measures on May 21, 2008 that included;

(i) an increase of 150 bps in discount rate to 12 percent;

(ii) an increase of 100 bps in CRR and SLR to 9 percent and 19 percent, respectively for banking institutions;

(iii) introduction of a margin requirement for the opening of letter of credit for imports (excluding food and oil) of 35 percent, and;

(iv) establishment of a floor of 5 percent on the rate of return on profit and loss sharing and saving accounts. Following a slight reversal in the mounting inflation, the SBP announced a decline of 100 bps on April 20, 2009.

SBP's tight monetary policy and rationalisation of fiscal subsidies and expenditure controls are the key factors that contributed to a reasonable progress towards macroeconomic stability. Although the fiscal and external current account deficit reduced during the last year, it still remains high along with the risk of slippages.

Improved fiscal discipline and falling international commodity prices have started to ease the domestic inflationary pressures. CPI is moderating to some extent after rising to a record high of 25.3 percent in August 2008. However, the YOY inflation at 19.1 percent in March was still significantly high. It is expected that with economic slowdown, the downturn in inflation would be steeper.

The YoY growth in broad money (M2) declined sharply to 4.59 percent as on 9th May FY09 against 8.96 percent in the corresponding period last year. The money supply was limited to Rs 215.0 billion as the NFA of the banking system recorded a decline of over Rs 227.1 billion during the first ten months of the current fiscal year to May 9.

However, NFA improved by Rs 130 billion as on 9 May, 2009 after contracting by Rs 357 billion on 6 December, 2008. This improvement mainly came towards end March 2009 as the government received $500 million each from the World Bank and the Bank of China.

The improvements in external account and hence in NFA are mainly owed to a rise in remittances, increase in external financial inflows from multilateral and bilateral sources and substantial retirement of foreign currency loans to commercial banks.

On the other hand, NDA of the banking system decelerated sharply during July-May FY09 to 10.99 percent as compared to 21.3 percent during the same period of last year. The sharp deceleration in NDA growth of banking system was mainly contributed by decrease in government borrowings and credit to non-government sector during July-May FY09.

The credit of Rs 138.4 billion to the public sector enterprise (PSEs), and government borrowings worth Rs 119.8 billion for commodity operations has significantly contributed Rs 258.2 billion in NDA during July-May FY09 compared to an expansion of Rs 105.2 billion in the same period last year. Credit to PSEs increased by Rs 138.4 billion during July-May FY09 against an increase of Rs 44.3billion in same period of last year.

The demand for credit from private sector decelerated and declined to Rs 21.8 billion during July-May FY09 compared to Rs 369.8 billion in the corresponding period of the last year. This sharp decline in private sector credit during July-May FY09 was mainly due to the exceptionally low demand for working capital that has witnessed the lowest growth in the recent past.

The slowdown in working capital requirements reflected the liquidity strains in the banking industry, which limited the lending ability of a few banks. Similarly, a sharp decline in raw material prices also lowered the working capital requirements of the corporate sector.

According to the distribution of credit to the private sector, the manufacturing sector although declined to Rs 89.4 billion, still continued to be the largest recipient of bank credit during July-March 2008-09. The overall manufacturing sector accounted for almost 85 percent of the credit to private sector business.

The structure of loan portfolio of the banks has changed significantly as by end-December 2008, 78 percent of the total bank advances were lent at the rate of 12 percent and above as compared to the 70 percent of bank advances extended at rates between 9 to 12 percent during the same month of last year. The banks have followed more strict credit criteria due to rising NPLs. Banks are focusing to finance those projects which are able to generate cash flows.

Similarly, the government's urge to raise funds from the banking system provided an avenue for banks to put these funds in T- bills. Due to the exceptionally strong credit demand and higher interest rate expectation, commercial banks were reluctant to lend to government till September 2008.

However, since October 2008 onwards, banks' participation in T- bills auctions increased significantly. Consequently, stock of Market Related Treasury Bills (MRTBs) with SBP declined to Rs 1,157.65 billion as on 30 April 2009 from Rs 1393.4 billion in November 29, 2009. One reason of higher acceptance was the change in the auction process for government papers. Instead of SBP, now the Ministry of Finance decides the cut-off rates in the primary auction.

The tight monetary policy stance of the SBP faced a major challenge during initial months of FY09, particularly due to exceptionally high pressures on rupee liquidity in the interbank market. A combination of a number of developments led to this liquidity crunch.

These included a contraction in money supply, a rise in currency in circulation, rising private and public sector credit demands, seasonal deposit withdrawals during Ramazan and Eid festival, and huge pulling out of bank deposits following rumours about the banking system. Resultantly, interest rates in the interbank market rose sharply.

However, SBP intervened in the domestic money market through several measures such as drastic reduction in reserve requirements, liquidity injections through Open Market Operations (OMOs), discounting window and others. In addition to these steps, the SBP provided on a timely basis over Rs 350 billion liquidity support to the banking sector.

The impact of tight monetary stance and liquidity management began to translate into a rise in other interest rates, with varied magnitude, at different stages of the economy. For instance, 6-months T-bills cut-off witnessed an increase of 169 basis points to 13.2 percent during July-May FY09. However, 6-month and 12-month KIBOR decreased by 26 bps and 39 bps to 13.68 percent and 13.83 percent respectively by end-May 2008 in view of a cut of 100 bps in the policy rate in April 2009.

*CAPITAL MARKETS* The beginning of the fiscal year 2008 appeared promising for Pakistan's capital markets regardless of the subprime crisis intensifying its grip on financial systems all over the globe. The stock markets in Pakistan posted good gains and the KSE-100 index gained 11.6 percent by middle of April 2008 and touched the highest level of 15,676 points on April 18, 2008 with a gain of 1,747 points over the index at the start of 2008.

Subsequent to this, however, the equity market saw an episode of precipitous decline: the KSE-100 index fell by over 62 percent (as on December 31, 2008) since touching its peak in April 2008.

While issues related to the macroeconomic scenario and a shaky political environment fuelled anxiety among the investor community and contributed to the fall in value, a dearth of adequate corporate governance measures aggravated the situation. Supplementing the extensive weakness was the diminishing foreign interest in the equity markets of Pakistan.

Notwithstanding this, equity investors have embarked on a fractional recovery of their fortunes with an upsurge in the KSE-100 index of a fine 22.5 percent since the commencement of the calendar year 2009, driven up chiefly by signs of returning economic stability.

A timely loan from the International Monetary Fund (IMF) approved in November 2008, and a materialisation of pledges by Friends of Democratic Pakistan are collectively expected to help out the economy sail through what could be a tumultuous era.

It goes without saying that the government's success in managing the economy has, without a doubt, served to build a soothing outcome. The stock market observed gigantic foreign outflows owing to the removal of price floor mechanism in the middle of December 2008.

The prospects of healthy foreign interest became doubly depressing by looking at the figure of foreign equity investment during the first nine months of the current fiscal year 2008-09. It stood at a negative $418.4 million till March 2009. With no fresh merger and acquisition activity in the year 2008-09, the international investors remained keen to increase their ownership share.

LSE and ISE followed the footprints of the leading stock exchange. Moreover, sectoral performance in the bourses remained dull with fuel and energy showing some positive signs.

Pakistan's debt market has witnessed an issuance of long-term government securities amounting to about Rs 49 billion and revision in deposit rates of National Savings Schemes on quarterly basis in 2008-09. Three new TFCs have been issued.

Interestingly, the non-bank market remained the principal issuer this time with no floatation related to the financial sector. Recent regulations by SECP that emphasise on increasing the minimum capital base and strict requirements for the classification of non-performing loans are anticipated to augment the strength of the NBFC sector.

Capital market reforms are an integral component of the structural reforms being supported by the government to restore macroeconomic stability and to build up the banking system, while developing a more contributing incentive regime for financial industry. Significant progress has been made on capital market reforms, including adoption of international standards and market practices and the streamlining of regulatory infrastructure to enhance surveillance and enforcement.

The government is keen to maintain the momentum to strengthen, deepen and broaden the base of capital markets. As a further step to fulfil this objective, the SECP has revived the Consultative Group on Capital Markets to act as an independent think-tank for important policy decisions in relation to the development of capital markets in Pakistan.

*TRADE AND PAYMENTS* The external sector developments in 2008-09 followed a rollercoaster ride patterns. It started with highest ever oil prices and unbearable commodity prices, punctuating the highs in October 2008 when current account crossed $2 billion mark on the back of soaring energy prices and uncertainties, gradually caught into the financial crisis and accentuating the lows in February 2009 with a current account surplus.

The year started with first quarter current account deficit of $3.8 billion and reached to third quarter deficit of just $0.3 billion. Notwithstanding this positive development, the external sector is still prone to some downside risk.

Overall exports recorded a negative growth of 3.0 percent during the first ten months (July-April) of the current fiscal year against positive growth of 10.2 percent in the same period of last year. In absolute terms, exports have decreased from $15,222.9 million to $14762.2 million in the period.

Imports during the first ten months (July-April) of the current fiscal year (2007-08) decline by 9.8 percent compared with the same period of last year, reaching to $28.92 billion. Import compression measures lowering domestic demand coupled with massive fall in international oil prices have started paying dividends and imports witnessed slowdown.

Beside that, depreciation of rupee had also played a significant role for lower imports during current fiscal year. Imports of the petroleum group registered declining growth of 7.6 percent and reached to $8012.7 million. The petroleum group accounts for 27.7 percent of total imports but contributed 21.0 percent in the overall growth of imports for the year.

The decline in imports of the petroleum group has been due to massive fall in oil prices in the international market as well as the substantial increase in its quantity imported. The imports of telecom declined by 54.8 percent during July-April 2008-09.

This is followed by imports of consumer durables group which exhibits negative growth of 16.4 percent. Petroleum group, raw materials and food groups witnessed a negative growth of 7.6 percent, 5.2 percent and 3.1 percent respectively. Import of machinery remained the only group which showed a nominal growth of 0.5 percent during July-April 2008-09.

Pakistan's current account deficit (CAD) moved back o $8.5 billion during July-April FY09 against US $11.2 billion in the comparable period of last year, showing a decline of 23.5 percent. In the month of February 2009, the current account witnessed a surplus of $128 million which was first monthly surplus since July 2007.

However, it turned to deficit of $457 million in April 2009. The improvement in current account completely arose during November-April 2008-09 when it declined by 74 percent over the corresponding period of last year on the back of reduction in trade deficit and improvement in invisible account. On the other hand, current account balance worsened by 100.8 percent during the first four months of the currant fiscal year 2008-09 compared with the same period of last year owing to increased import on account of higher import prices and food imports.

Trade deficit decelerated by 12.3 percent during July-April 2008-09. This improvement contributed by deceleration in import growth due to lower imports in terms of quantity in the back of import compression measures and depreciation in rupee along with massive decrease in imports prices. Increase in workers' remittance and reduction in services account deficit led to improvement of invisible account.

Services account deficit shrank by 41.3 percent during July-April FY09 to reach $3.2 billion. This deterioration was contributed by factors like receipts from logistic support, deceleration in freight related charges and sharp fall in outflows from foreign exchange companies the result of action against undocumented fund transfer.

Financial account contracted from $6,224 million to $3,476 million during July-April 2008-09 against corresponding period of last year. This decline was a result of a variety of reasons which discouraged the investment flows to Pakistan during July-April 2008-09, mainly weakening economic fundamentals, deteriorating law and order situation, slack functioning of stock market, lack of privatisation proceeds and in the presence of global financial crises the foreign investors declined to invest as expectations of the lower degree of profitability.

Pakistan witnessed pressure on ER during July-October 2008-09 when rupee depreciated by 16.3 percent. First as a result of substantial loss of foreign exchange reserves. Second massive buying by businesses seeking to avoid exchange losses on imports along with other factors like trade related outflows, political uncertainty and speculative activities.

With signing of Standby arrangement with the IMF, the rupee got back some of its lost value and with substantial import compression, improvement in overall external balance including revival of external inflows from abroad the exchange rate hovered around Rs 80.60 during April 2009.

Workers' remittances amounted to $6355.6 million in July-April 2008-09 as against $5319.1 in corresponding period of last year, thereby showing an increase of 19.5 percent. October 2008 remained only month during which the worker remittance exhibits a negative growth of 19.7 over October 2007 owing to difficult global environment and uncertainties surrounding domestic economy however, they recovered to their normal high double-digit growth since November 2008.

More than 75 percent of remittance during July-October 2008-09 routed through exchange companies whereas majority of the increase in remittances growth was contributed by higher inflows in banks during November-March 2008-09. This compositional change in remittances can be attributed to the FIA actions against the undocumented fund transfer during October 2008.

Pakistan's total liquid foreign exchange reserves amounted to $11.6 billion by the end of May, 2009. Of which, reserves held by State Bank of Pakistan stood at $8.28 billion and by banks at $3.32 billion. The trend of reserves consists of two parts during current fiscal year. Foreign exchange reserves declined to a low during the first five months of 2008-09 at $6.4 billion by 25 November, 2008 from $11.4 billion at the end of June 2008.

This depletion of reserves in the five months (July-November 2008) was much higher than fall in foreign exchange reserves for the entire fiscal year 2007-08. The subsequent recovery since November 25, 2008 onward was essentially due to the inflow of $3.1 billion from the IMF following Pakistan's entry into a macroeconomic stabilisation program than after additional capital inflows from other agencies. Pressure on reserves eased due to reduction in current account deficit along with modest recovery in capital flows thereby bringing stability in exchange rate, which further improved the position of foreign exchange reserves.

*EXTERNAL AND DOMESTIC DEBTS* External debt and liabilities (EDL) Pakistan's total external debt increased from US $46.3 billion at end-June 2008 to US $50.1 billion by end-March 2009, an increase of US $3.8 billion or 8.2 percent. In relative terms, EDL as percentage of GDP increased from 28.1 percent at end-June 2008 to 30.2 percent by end-March 2009, an increase of 2.1 percentage points.

The country's debt burden is also defined as external debt and liabilities as percentage of foreign exchange earnings increased from 124.3 percent by end-June 2008 to 144.3 percent by end-March 2009. International capital markets suffered one of the most turbulent years in recent history.

With the financial crisis instilling a sense of distrust amid the market access to financing has been restricted, with spreads widening for both developed and emerging economies alike. As negative sentiment prevails, the situation for Pakistan is compounded by weaker economic performance in 2008-09 and a highly volatile domestic security situation.

The spread on Pakistani sovereign bonds as given by the EMBI have gone up by 1550 bps and have a rating of B3/CCC+. Given the severity of the crisis in international markets, and hesitance with respect to investor confidence, Pakistan did not issue any new instruments in 2008-09.

Public debt increased by Rs 1367 billion in the first nine months of 2008-09, reaching a total outstanding amount of Rs 7268 billion; an increase of 23.2 percent in nominal terms. Total public debt has been growing at an average of 12 percent per year since the fiscal year 1999-2000.

The increase in total public debt is shared between rupee and foreign currency debt in the ratio of 40:60. The rise in foreign currency debt is mainly because of massive depreciation of the Pak rupee in the first quarter of the fiscal year.

In absolute terms, $3.1 billion are added to the public external debt in the period July-March 2009. However, a big chunk of Rs 624 billion has come from depreciation. Public debt as a percentage of GDP (a critical indicator of the country's debt burden) has declined by 1.9 percentage points in the nine months, down from 57.2 percent by end-June 2008 to 55.2 percent of GDP by end-March 2009.

Total domestic debt is positioned at Rs 3757.7 billion at end-March 2009 which implies net addition of Rs 540.5 billion in the nine months of the current fiscal year. In relation to GDP the domestic debt stood at 28.7 percent of GDP which is lower than end-June 2008 level at 31.3 percent. The domestic debt grew by 16.8 percent which was lower than last years' growth of 23.3 percent. The increase in domestic debt is lower than nominal GDP growth which helped reduction of 2.7 percentage points of GDP.

Interest payments on domestic debt stood at Rs 551 billion, which sums to 41.8 percent of tax revenues and 30.5 percent of total revenues estimates of 2008-09. As a percentage of total expenditure budgeted for 2008-09, interest payments are currently 23.0 percent. The interest payments on domestic debt stood at 4.3 percent of GDP for 2008-09.

*EDUCATION* Education is extensively regarded as a route to economic prosperity being the key to scientific and technological advancement. Hence, it plays a pivotal role in human capital formation and a necessary tool for sustainable socio-economic growth. Education also combats unemployment, confirms sound foundation of social equity, awareness, tolerance, self-esteem and spread of political socialisation and cultural vitality.

Public expenditure on education as percentage to GDP is lowest in Pakistan due to fiscal resources constraint that paved the way to synchronisation in terms of GDP allocation. The trend of investment on Education in terms of GDP has been 2.50 percent and 2.47 percent in the years 2006-07 and 2007-8 respectively whereas it is estimated to be 2.10 percent during the 2008-09.

It is on the lower side in accordance to requirement, given the importance of the sector, but seems appropriate in terms of current financial situation of the economy. The budget allocation has increased by 8.6 percent in 2008-09 as against an increase of 17 percent in 2007-08.

According to Pakistan Social and Living Measurement (PSLM) Survey data (2007-08), the overall literacy rate (age 10 years and above) is 56 percent (69 percent for male and 44 percent for female) in 2007-08 compared to 55 percent (67 percent for male and 42 percent for female) in 2006-07.

Literacy remains higher in urban areas (71 percent) than in rural areas (49 percent) and more in men (69 percent) compared to women (44 percent). When analysed provincially, literacy rate in Punjab stood at 59 percent, followed by Sindh (56 percent), NWFP (49 percent) and Balochistan at 46 percent.

The literacy rate of Punjab and Balochistan has improved considerably during 2006-07 to 2007-08. The overall school attendance (age 10 years and above) is 58 percent (71 percent for male and 46 percent for female) in 2007-08 compared to 56 percent (68 percent for male and 44 percent for female) in 2005-06.

According to the Ministry of Education, there are currently 227,243 institutions in the country. The overall enrolment is recorded at 34.49 millions with teaching staff of 1.27 million.

*HEALTH & NUTRITION* The government attaches a very high priority to the improvement of health facilities so as to translate the economic success into social benefits. In Pakistan, the coverage of health facilities has improved over the years. The existing network of medical services consists of 948 hospitals, 4794 dispensaries, 5310 basic health units (BHUs), 561 rural health centres (RHCs) and the availability of 103037 hospital beds.

Besides, there are 133956 doctors, 9012 dentists and 65387 nurses in the country. During the calendar year 2008, the population to medical facilities ratio in terms of doctor works out 1212 person per doctor, 18010 person per dentist, 2478 person per nurse and availability of one hospital bed for 1575 persons.

The total outlay on health during 2008-09 is estimated at Rs 74 billion which shows an increase of 23 percent over last year and works out 0.5 percent of GNP. The new health facilities added to the overall health services system during 2008-09, include the construction of 48 new facilities (35 BHUs and 13 RHCs), up-gradation of 890 existing facilities (850 BHUs and 40 RHCs), addition of 4300 hospital beds and training of 4500 doctors, 400 dentists, 3200 nurses and 5000 paramedics beside training of 96000 LHVs. To control the common diseases and to alleviate their pain and suffering, various health programmes like TB, Malaria and AIDS Control Programmes were carried out.

The caloric intake per person has been estimated as 2363 per day in 2008-09 and per capita protein availability has increased from 69.5 gram last year to 70.0 gram in the 2008-09.
*
POPULATION, LABOUR AND EMPLOYMENT *The population of Pakistan stood at 164.07 in mid-2009. If the existing trend remains unchanged, it will reach 167 million by the year 2010 and 194 million by 2020 (NIPS).

The density of population per person is 185 (2003). According to 2007 province-wise demographics estimates of the planning and development division, Punjab has 55.46 percent of the total population of Pakistan.

Sindh has 22.92 percent of entire population, NWFP has 13.73 percent population. Balochistan is the least populous with population 5.15 percent, while Islamabad has 0.7 percent population and Federally Administered Tribal Areas have 2.37 percent of entire population. Total fertility rate has decreased by 58.33 percent in the past 10 years.

Crude birth rate (CBR) measures the growth and crude death rate (CDR) measures the decline of a population. These also give the birth and death rates among a population of 1000.

CBR in Pakistan is estimated at 25 while 10 years ago it was 31.7 which is a good trend. Similarly, CDR is 7.7 and about a decade ago it was 9. Both of these indicate that improvement on the population front is evident. This also shows that health statistics are gradually improving.

Life expectancy has also increased to 64.9 years from 62.3, 10 years ago. Infant mortality rate was 81.1 in 1998 while it is 70.2 per thousand live births now. The decline explains that certain diseases have been controlled and there has been greater access to health care for the people.

Pakistan has a labour force of 51.78 million people. Women labour force has increased, which stood at 10.96 million that is 0.1 million more than the previous year. The total number of people employed was 49.09 million that is 1.44 million more than the previous year.

The supply of labour force in the economy and the composition of the country's human resource is the labour force participation rate (LFPR). Crude activity rate is the currently active population expressed as a percentage of the total population in Pakistan. Crude activity has increased negligibly in 2007-08; it is 32.2 percent.

Agriculture dominates the distribution of employed persons among all major industries, leading at 44.65 percent during 2008. Trade ranks second having share of 14.62 percent, while mining and manufacturing have the third largest share of 13.11 percent.

The "Others" category have the combined distribution of employed persons in several industries of 15.17 percent. Trade, Mining & Manufacturing, and Agriculture combined employ 72.38 percent of the labour force. During the period 1999-2000 to 2005-06, 11.33 million work opportunities were created, due mainly to the strong economic growth. However, in the subsequent year ie 2007-08, an increase of 1.44 million employed persons was seen.

Various steps are being taken by the government like People's Works Programme, National Internship Programme, People's Rozgar Programme, National Bank of Pakistan. NBP will provide credit for self-employment, National Employment Scheme would be launched in the country under which employment will be provided to one person of each poor family in 50 percent districts of the country.

*POVERTY AND INCOME DISTRIBUTION* Although persistent growth in per capita income which determines absolute purchasing power, and minimal of inflation, which determines the net purchasing power coupled with least skewed income distribution is required for perpetual decline in poverty incidence, it varies both in terms of space and time governed by domestic and international influent factors.

In this perspective year 2008-09 has been an exceptional year. International financial crisis after translation into reduced and even negative growth rates the world over, in conjunction with soaring fuel and food prices, are at best estimated to increase poverty estimates the world over.

Headcount ratio decreased marginally from 23.94 percent in 2004-05 to 22.32 percent in 2005-06. Federal Bureau of Statistics has already furnished the results of PSLM 2007-08 to Centre for Research on Poverty & Income Distribution (CRPRID). Analysis thereof will be available in due course which will determine the direction of change in poverty incidence, the quantum of change and quintile based consumption pattern.

Selected social indicators, based on PSLM 2007-08, register an improvement in standard of living which may serve as a proxy to reduction in poverty. An efficient fiscal management is a prerequisite for a desirable distribution of fiscal burden in the society. However, social safety nets have their immediate significance as well as efficacy for targeted poverty reduction.

During year 2008-09, government took various initiatives to combat poverty which included PPAF, micro finance SME operations, Benazir Income Support programme, Peoples Works programme, Pakistan Bait-ul-Mal and Punjab Government initiatives including tractor subsidy, sasti roti and Punjab food support scheme; which will help enhance absolute per capita income, net per capita income and widen the scope to earn livelihood.

Agriculture, services and manufacturing sector each is among the largest source of employment for income generation. Although agriculture, barring livestock, is expected to grow faster in 2008-09 than in 2007-08, industry and services sector will register a declining growth rate with shifting pressure for employment to other sectors outside the organised sectors, acceptance of lower grade jobs, lower income and thus lower consumption.

Overseas migration and the resulting remittances have served dual objectives world-wide; ie, easing pressure on employment market and providing foreign exchange for balance of payments as well as budgetary support. Remittances supplement the household income, uplift life standard and thus reduce absolute poverty.

Remittances help the household to increase their consumption expenditure on food, develop expenditure on housing, skill development and establishment of small businesses thus improving the scope for higher future income. Remittances from expatriate Pakistanis are believed to have had a major impact on the reduction in the incidence of poverty.

The total remittances inflows between 2001-02 and 2007-08 amounted to $31 billion, equivalent to 18.3 percent of GDP. In 2007-08, remittances reached a record level of $6.5 billion. This massive inflow of foreign remittances, when translated into increased consumption expenditures and greater employment opportunities generated through greater investments in the construction industry, the SME sector, and other businesses contributed to the decline in poverty in the country.

The record workers remittances ($739.43 million) in March 2009, could serve as a major source of satisfaction. It is also worrisome with the apprehension that big rise in remittances may indicate that those Pakistani workers abroad who have lost work are moving their capital back home. There are downside risks to remittances in the wake of ongoing recession in the source countries.

Almost all Pakistani overseas workers' destination countries are projected to grow at lower rate in 2008-09 compared 2007-08 which will influence overseas migration of Pakistan labour and thus lower remittance. All such factors are likely to serve as a stress on poverty reduction strategy and would necessitate further pro growth strategic measures and further strengthening of social safety nets.

*TRANSPORT AND COMMUNICATION* Transportation network of any country is of vital importance to its development and affects all sectors through economic linkages. It ensures safe and timely travelling encourages business activities and cuts down transportation costs while granting access to producers for marketing their goods. Pakistan's economic development also depends on improvement/modernisation of its transport sector accounting for 11 percent to GDP & 16 percent to fixed investment.

Pakistan has a vast road network covering 258,350 kilometres including 176,589 km of high type roads and 81,761 km of low type roads. Total roads network which were 229,595 km in 1996-97, increased to 258,350 km by 2008-09 indicating an increase of 12.5 percent. During the out-going fiscal year, the length of the high type road network increased by 1.3 percent but the length of the low type road network declined by 2.7 percent because most of the low type roads have been converted to high type roads.

An effective railway system facilitates commerce and trade, reduces transportation cost and promotes rural development and national integration while reducing the burden on commuters. Pakistan Railway carried 63.0 million passengers and 5.4 million tons of freight during current fiscal year and its earning stood at Rs 17442 million.

The outgoing year (2008) was also exceptionally difficult for PIA, as the airline was equally affected by the unprecedented increase in fuel cost coupled with weaker Pakistani Rupee which severely hurt PIA and eventually it had to bear huge loss on its US $ loans. PIA international passenger traffic, excluding Haj traffic registered an increase of 3.5 percent (passengers despite the seat (capacity) reduction of 2.3 percent.

On domestic routes passenger traffic also registered an increase of 3.6 percent passengers, despite the seat (capacity) reduction of 7.4 percent. Hence in terms of capacity utilisation, overall Passenger Seat Factor (excluding Haj) increased to 74.5 percent during the year 2008 as compared to 70.3 in 2007 although Airline was constrained to mount less ASKs (Available Seat Kilometres) by 5.7 percent. Similarly, though Cargo capacity was also lowered by -13.8 percent during the year 2008, load factor compared to the year 2007 improved by 2.7 percent.

Karachi Port Trust (KPT) is contributing in the economic growth of the country, by its record cargo handled at KPT. During the first seven months of the current fiscal year, it posted a remarkable increase of 44.3 percent in export handled at Karachi Port Trust. During first nine months of current financial year 2008-09, Port Qasim Authority handled 18.01 million tones cargo depicting a shortfall of 9 percent over July 07-March 08 owing to global economic crisis.

Pakistan National Shipping Corporation (PNSC) lifted 5762.2 million tons of liquid cargo and 865.0 million tons of dry cargo during the current fiscal year. The consolidated revenues of the Group for the quarter ending March 31, 2009 were Rs 9503 million during the period under review as against Rs 7,471 million for the corresponding period last year showing an increase of 27 percent. The first commercial ship bringing 66000 tons of cargo was handled on Gwadar Port during March 2008.

Telecom sector of Pakistan exhibited positive but slow growth in terms of revenue, subscribers and teledensity. During the current fiscal year total teledensity reached up to 60.6 percent. However, cellular segment led the share in total teledensity by 93.7 percent, followed by Fixed Local Loop (FLL) 3.8 percent, and Wireless Local Loop (WLL) 2.5 percent.

During the first 9 months of 2008-09, cellular market added 3,422,599 subscribers with average of 0.3 million per month and total subscribers reached 91.4 million. Total fixed line subscribers in Pakistan stand at a total of 3.7 million as of March, 2009, yielding total teledensity of 2.3 percent. Total WLL subscribers stood at 2.5 million and density in the country touched 1.5 percent in March, 09. There are currently more than 12,000 cities/towns/villages covered by WLL services.

At present there are 384,187 fixed, mobile and WLL payphones available across Pakistan. There are currently 267,180 broadband subscribers showing almost 59 percent growth in the last six-month time.

*ENERGY* Notwithstanding output fluctuations, a higher quantity of energy is an ever-present requirement. The outgoing year has witnessed number of internal and external challenges in Pakistan's economy and shortfall in energy sector is among the major problems. During the current year, supply and consumption of energy remained lower than previous years.

The consumption of energy remained low due to overall slow down of economy, while the major cause behind the lesser energy supplies remained circular debt issue in the energy sector. Energy shortages dragged the performance of economy especially large-scale manufacturing.

The consumption of petroleum products, gas and coal during the first nine months (July-March 2008-09) of the current fiscal year decreased by 3.4 percent, 2.5 percent and 26.5 percent, respectively over the corresponding period of last year. On the other hand, supply of crude oil, petroleum products, coal, and electricity during the first nine months of the outgoing fiscal year 2008-09 decreased by 5.5 percent, 2.8 percent, 26.5 percent and 17.9 percent, respectively over the corresponding period of last year.

Production of crude oil per day decreased to 66,531 barrels per day during July-March 2008-08 from 70,165 barrels per day during the same period last year, showing a decrease of 5.2 percent. On average, the transport sector consumed 50.6 percent of the petroleum products, followed by power sector (33.1 percent), industry (10.3 percent), household (1.7 percent), other government (2.1 percent), and agriculture (1.1 percent) during last 10 years ie 1998-99 to 2007-08.

The average production of natural gas per day stood at 3,986.5 million cubic feet during July-March, 2008-09, as compared to 3,965.9 million cubic feet over the same period of last year, showing an increase of 0.52 percent. On average, the power sector consumed 29.9 percent of gas, followed by industrial sector (25.1 percent), household (18.4 percent), fertiliser (16.1 percent), Transport (7.1 percent), commercial sector (2.8 percent) and cement (0.6 percent) during last 10 years ie 1998-99 to 2007-08.

The total installed generation capacity increased to 19.754 MW during July-March 2008-09 from 19,566 MW during the same period last year, showing a marginal increase (1.0 percent). Total installed capacity of Wapda stood at 11,454 MW during July-March 2008-09 of which, hydel accounts for 57.2 percent or 6,555 MW, thermal accounts for 42.8 percent or4, 899 MW. The number of villages electrified increased to 133,463 by March 2009 as compared to 126,296 by March 2008, showing an increase of 5.7 percent.

Presently, some 2.700 CNG stations are operating in the country. By March 2009 about 2.0 million vehicles were converted to CNG as compared to 1.70 million vehicles during the same period last year, showing an increase of 17.6 percent. With these developments Pakistan has now become the largest CNG using country.
*
ENVIRONMENT* Pakistan's natural resources are increasingly under stress due to rapid population growth and environmentally unsustainable practices. Although densely settled, Pakistan's terrain is largely arid or semi-arid.

According to Asian Development Bank's Country Environment Analysis Report, 2008, pressing environmental concerns facing the country relate broadly to the management of scarce natural resources (green issues), pollution and waste management (brown) and potential vulnerabilities to natural hazards and climate change.

The Government of Pakistan has declared 2009 as the National Year of Environment. In this regard the current year was kicked off with a Regional level workshop on Climate Change, which was inaugurated by the Prime Minister of Pakistan.

A Medium Term Development Framework 2005-2010 (MTDF) adopted by the GoP in mid-2005 coincided with the approval of a new and far-reaching National Environmental Policy (NEP), with the goal to "protect, conserve and restore Pakistan's environment in order to improve the quality of life of the citizens through sustainable development", and establishing directions for water supply and management, air quality, waste management, forestry, biodiversity, energy efficiency, and agriculture.

The Government has also made a considerable increase in its funds allocation for Environmental projects in the Public Sector Development Programme (PSDP). According to Pakistan Environmental Protection Agency (EPA) and Japan International Co-operation Agency (JICA), 2006, common gases emitted by vehicles include carbon monoxide, nitrous oxides, and ozone, and are dangerous to human health beyond certain levels of concentration.

For managing the rapidly deteriorating air quality an Environmental Monitoring System (EMS) to monitor the air quality at both Federal and four Provincial Capitals has been launched by the Government. Data from World Water Forum suggests water pollution causes 60 percent of infant mortality in Pakistan and is now one of the leading causes of death in the country.

Realising the importance and role of sanitation in the improvement of environment as well as the commitment to achieve the MDG sanitation goals, the MoEnv launched the National Sanitation Policy of Pakistan before the Federal Cabinet soon after the Second South Asian Conference.

The Ministry in collaboration with UNICEF, Water & Sanitation Programme (World Bank), Water Aid, Rural Support Programme Network (RSPN) etc, launched awareness and training programmes in the year 2008, the International Year of Sanitation (IYS 2008).

Installation of water filtration plants in different areas is underway. The implementation of which is targeted to be completed within this fiscal year. The latest figures released by the MoEnv estimated that about 38 percent of Pakistan's irrigated land is waterlogged; the productivity of soil is being lost due to salinity and sodicity.

To achieve the MDGs targets of vegetation cover of 6 percent by 2015, the Planning Commission proactively interacted with the MoEnv and the Provincial Forest Departments to come up with project for afforestation/reforestation to meet the MTDF and MDGs targets. The President of Pakistan launched a Mass Afforestation Programme on December 22, 2008. This programme will be spread over a period of five years and shall largely be sponsored by private entrepreneurs for planting trees on state and other suitable lands.

Climate change is also a matter of concern for Pakistan because of the impact it will have on glaciers releasing water for crops. The receding glaciers will increase water flows in the Indus basin, followed by permanent reductions.

The main challenge is to develop an understanding of how climate change could affect Pakistan's uplands and rivers, its agro-ecological zones and subzones in the Indus Plain, and coastal lands. Pakistan's Planning Commission has recently established a task force to investigate the impact of climate change on the country's agriculture, economy and natural resources.

The Government has also recently initiated the Technical Advisory Panel (TAP) on Climate Change. TAP is expected to provide the requisite input to the government to combat the threat of climate change by an enabling policy, regulatory framework and vulnerability assessments of Climate Change. The official launch of the TAP was held on February 15, 2008.

It is encouraging to note that Pakistan is blessed with a strategic location that enhances its capacity to benefit from natural resources, provided these resources are efficiently managed and maintained.

So far the Government has taken significant initiatives in collaboration with international agencies to counter complex issues responsible for environmental degradation. A pragmatic approach towards multifarious challenges requires in depth and focused research, without which desired results will remain unachievable.


----------



## Neo

*Energy sector tops Rs 421 billion proposed PSDP outlay​* 
LAHORE (June 10 2009): With major emphasis on energy sector development, the Public Sector Development Programme (PSDP) with total outlay of Rs 421 billion has been finalised by the Planning Commission. The energy sector spending, sources said, comes to 33 percent of the total PSDP. To overcome energy shortage, investment by the government and Wapda from its own resources during 2009-10 would be around Rs 139 billion for power generation and conservation.

This would not only make available additional power but also help reduce cost of doing business, sources added. Allocation for health sector has been increased by 82 percent from Rs 14 billion to Rs 26 billion, reflecting overall continuous emphasis on improving the productivity of human capital and general quality of life. Major programmes include EPI (Rs 6 billion), MCH (Rs 3 billion) and Primary Health Care (Rs 7 billion).

The number of Lady Health Workers (LHW) will be increased during the next financial year to: achieve the target of 200,000 and provide health facilities at the doorstep in rural areas, sources said. Allocation for education and training has been increased from Rs 20 billion to Rs 32 billion (60 percent) so as to ensure availability of qualified human resources to match the highly competitive world market.

Productivity of Pakistani labour is very low as compared to other countries. To sharpen the skills of the labour force, Hunarmand Pakistan Programme is being financed. This programme will help improve skills of labour, which will create more demand for them both at home and abroad.

Major initiative in power sector is initiation of Basha Diamer Dam during 2009-10. Both the government and Wapda would arrange finances. In addition to hydel, said the sources, nuclear sources would also be used for power generation; projects such as C3, C4 with an investment of Rs 190 billion are being initiated. These projects would generate 600 MW electricity by 2016, sources said. Water sector allocation has been proposed Rs 58 billion which comes to 14 percent of the total federal programme.

According to the sources, 32 small and medium darns, 8 in each province are being financed under the proposed PSDP. Similarly, adequate allocation has been made to projects such as national programme of watercourses, irrigation system rehabilitation, lining of canals and distributions, etc.

In order to complete Mangla Dam Raising Project (including resettlement) Rs 12.0 billion have been proposed. The Wapda will be able to store 2.88 MAF additional water during next monsoon season, they said. On transport and communication sector, allocation of Rs 70 billion has been made. Of this amount, said the sources, about Rs 45 billion are proposed for NHA, and Rs 11.7 billion for Railways. This would ensure economic integration and balanced regional development, they added.

Under the new initiative of the government, to reduce poverty, provide employment, better quality of life, promoting good governance, skill development special initiatives have been launched. These included establishment of technical institutes of international repute in 27 Districts all over the country with a total cost of Rs 7 billion. Further continuation of income support fund involves social protection initiative with a total outlay of Rs 70 billion.

Housing programme for the poor and government servants was started during 2008-09. This programme would continue with an allocation of Rs 1 billion. This amount would be used as a revolving fund, sources said. Similarly, integrated agriculture marketing and storage infrastructure project is being initiated to ensure food security which in return help reduce poverty and better quality of life in the shape of higher incomes to farmers.

In order to assist small farmers, Benazir Income Scheme costing over Rs 4 billion is being launched and to save agricultural produce. Modern grain storage facilities would be created with an investment of Rs 27 billion. A new concept of Public Private Partnership in the field of dairy products is being introduced with equity of Rs 3.5 billion.

The government would play advisory role while private sector would implement the project. According to the sources, Reconstruction Opportunity Zones (ROZs) in NWFP and Balochistan are being established with an allocation of overRs 3 billion. It has also been proposed that the government should develop Thar Coal infrastructure.

The World Bank has pledged grant assistance for preparation of the project. The Sindh government is being allowed to negotiate loan with the World Bank. Allocation for Special Areas (AJK, NAs & Fata) has been enhanced from Rs 16 billion to Rs 38 billion (123 percent) with a view to accelerating development in less-developed areas.


----------



## Neo

*Pakistans Inflation Slows, Rate Reduction May Follow ​*
June 10 (Bloomberg) -- Pakistans inflation slowed for a seventh straight month in May, giving the central bank room to cut interest rates to stimulate growth.

Consumer prices in South Asias second-largest economy rose 14.39 percent from a year earlier after gaining 17.19 percent in April, the Federal Bureau of Statistics said on its Web site today. That was the smallest increase since March 2008 and less than the 15.3 percent expected by economists.

Governor Syed Salim Raza in April slashed the central banks key rate for the first time since 2002, reducing borrowing costs to 14 percent from 15 percent. That may help prop up growth in Pakistan, which is struggling to deal with Taliban insurgents and a crumbling economy.

Pakistans economy is stuck in a slowdown and is in need of some sort of stimulus to drive things going forward, said Khalid Iqbal Siddiqui, an economist at Invest & Finance Securities Ltd. in Karachi. A further 100 basis-point reduction in the central banks discount rate cannot be ruled out.

Former Governor Shamshad Akhtar last year increased interest rates to a decade high to slow runaway inflation and help shore up the nations foreign-exchange reserves.

Higher borrowing costs have dented growth in the economy, which is predicted by the government to expand 2 percent in the year to June 30, down from 5.8 percent last year.

IMF Bailout

The country was forced to turn to the International Monetary Fund for a $7.6 billion rescue package in November after its reserves shrank 75 percent in a year to $3.45 billion.

International donors meeting in Tokyo in April pledged more than $5 billion to help Pakistan shore up its ailing finances and fight terrorism.

Governor Raza may be reluctant to lower interest rates aggressively as core inflation remains uncomfortably high, said analysts including Muhammad Imran Khan from First Capital Equities Ltd. in Karachi.

Core inflation, which excludes food and energy prices, slowed to 16.6 percent in May from 17.7 percent in April, according to todays report.

The risk of too sharp a cut is to convey the feeling that the battle against inflation has been won and unfortunately, thats not true, Raza said in a March 13 interview with Bloomberg News. Too sharp a cut would seem to be populist, premature or succumbing to pressure. I would err on the side of gradualism and do it in stages.

Inflation may also pick up in the last quarter of 2009 as the government plans to increase electricity tariffs by as much as 17 percent, said Mustafa Pasha, an economist at BMA Capital Management Ltd. in Karachi.

The central bank predicts inflation, which soared to a three-decade high of 25.33 percent in August 2008, may ease to 11 percent by June. The banks next monetary policy statement is due in late July.


----------



## Neo

*Pakistans Trade Deficit Narrows as Imports Decline in May​*
June 10 (Bloomberg) -- Pakistans trade deficit narrowed by 45.9 percent in May as imports fell faster than exports.

The trade gap fell to $1.06 billion in the eleventh month of the fiscal year ending June 30, from $1.96 billion a year earlier, according to data posted on the Web site of the Federal Bureau of Statistics in Islamabad.

Overseas sales fell 21.9 percent to $1.49 billion, while imports fell 34 percent to $2.56 billion, according to the data.

Pakistan is seeking to boost exports to increase growth in a country where the World Bank estimated two-thirds of the population of 170 million people, survive on less than $2 a day.

Exports in the ten month period ending May 31 fell 5.1 percent to $16.3 billion and imports fell 12.4 percent to $31.5 billion. The 11-month trade gap narrowed 19 percent to $15.2 billion, according to the data.


----------



## Neo

*TURKMENISTAN: ELECTRICITY DEAL WITH PAKISTAN PROPOSED IN ISLAMABAD​*6/10/09 

A flurry of diplomatic meetings in both Ashgabat and Islamabad indicates that Turkmenistan is inching ever closer to becoming a major supplier of Pakistans energy needs.

Pakistans Minister for Water and Power, Raja Pervaiz Ashraf, has asked Turkmenistans ambassador to Islamabad, Sapar Berdiniyazo, to export electricity via Iran, The News reported on June 10. Berdiniyazo assured the minister that Turkmenistan has a "surplus of electricity," the report added.

Separately, President Gurbanguly Berdymukhamedov met on June 9 with outgoing Pakistani ambassador to Turkmenistan Said Akbar Afridi, who had served in Ashgabat since 2006.


----------



## Neo

*May CPI rises at slowest pace in 14 months​*
Thursday, June 11, 2009

ISLAMABAD: Pakistans inflation rose 14.39 per cent in May from a year ago, but at its slowest pace for 14 months, raising hopes that the central bank will cut interest rates further to help the economy out of virtual recession.

Pakistans inflation, measured by the consumer price index, rose 14.12 per cent in March 2008.

The implications for easing of inflation is that in the next monetary policy, we can see a further reduction in interest rates by at least 100 basis points, said Asif Qureshi, head of research at Invisor Securities Ltd.

The State Bank of Pakistan is due to review the monetary policy in July for the quarter ending Sept 30. It cut its key interest rate by 100 basis points to 14 per cent in April in order to boost economic growth.

Pakistan is due to announce its budget on Saturday and the Planning Commission projects GDP to grow 3.3 per cent in 2009/10.

In 2008/09, it is expected to grow 2 per cent, tantamount to recession in an emerging economy with more than a third of its people living in poverty and with an annual population growth of more than 2 per cent.

The economy has slowed sharply after growing by 5.8 per cent in 2007/08.

The CPI was up 0.23 per cent over April, 2009. The CPI in April was up 1.41 per cent from March. Using 2000/01 as the base year, the CPI stood at 197.74 in May against 197.28 in April.


----------



## Neo

*Argentine co interested in TAP gas project​*Thursday, June 11, 2009

ISLAMABAD: Argentinean oil and gas holding company Bridas Corporation on Wednesday expressed interest in participation in Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline project and exploration of gas in various parts of the country.

A companys delegation, led by Carlos Bulgheroni, Chairman Bridas Corporation, visited the Board of Investment (BOI) to explore investment opportunities in Pakistan, especially participation in the TAP gas pipeline project and in exploration of gas fields of Balochistan and Sindh.

In the meeting, Saleem H Mandviwala, Minister of State and BoI Chairman, BoI senior offices and representatives of the ministry of petroleum and natural resources were present. The BoI chairman highlighted the parameters of investment policy, which allows 100 per cent foreign equity in major sectors and full repatriation of profits and dividends in all sectors.

It was told that average rate of return is almost 30 per cent and in some cases up to 50 per cent.

The delegation was given a detailed presentation on the investment policy, incentive package and potential in the oil, gas and energy sector. Referring to opportunities for the private sector, the delegates were briefed about the current status of Pak-Iran gas pipeline project and Turkmenistan-Afghanistan-Pakistan (TAP) pipeline project. The delegation was also informed about Thar coal reserves, which are estimated at 175 billion tonnes, but are untapped.

The delegation appreciated the hospitality extended to them during their visit in Pakistan. Mandviwala assured to extend all possible assistance required to them.


----------



## Neo

* Italy offers 20m euros for skill development​*Thursday, June 11, 2009

ISLAMABAD: Italy is ready to provide a soft loan of 20 million euros to Pakistan to strengthen and promote technical & vocational education and training sector in the country.

This was stated by Walter Zucconi, head of a two-member official delegation of Italy during his meeting with the Chairman National Vocational and Technical Education Commission (NAVTEC), held at the Prime Ministers Secretariat here on Wednesday.

Italian delegation leader, on the occasion, said that his country could help in implementing the National Skill Strategy. He was of the opinion that the soft loan of 20 million Euros would help to realize the objectives of National Skill Strategy.

During its weeklong stay in Pakistan, the delegation will hold meetings with the relevant officials aimed at assessing and identifying some Italian development initiatives, as was announced in the international donors conference, held in Tokyo in April 2009.

The delegation was informed that NAVTEC provides policy direction and create an enabling environment for skill development and also guides the provinces in utilizing the public sector training facilities to the fullest.


----------



## Neo

*$250m World Bank support for PPAF​*Thursday, June 11, 2009

ISLAMABAD: The World Banks Board of Directors has approved $250 million for poverty reduction project (PPAF-III) of the Pakistan Poverty Alleviation Fund for next five years.

Addressing a media briefing on Wednesday here, Chief Executive Officer (CEO) PPAF Kamal Hyat said that the World bank funding is based on the consideration of PPAFs output, lowest administrative cost, effectiveness of outcomes and impact on the poorest at the grassroots level.

Kamal Hyat said that PPAF will increase its focus on inclusion of poor people - including women, youth and ultra-poor households - in community organizations and strengthen their participation in all community decision-making processes.

PPAF-III would focus on five key areas of social mobilization and institutional building, livelihood enhancement and protection, microcredit access, basic services and infrastructure and project implementation support, he added.

He said cumulative disbursements of approximately $1 billion make PPAF the largest institution of its kind in the world impacting directly/indirectly 15 million people with microcredit with 100 per cent recovery rate, 16,000 water and infrastructure projects impacting 11 million with 50 per cent women beneficiaries, 162 health and educational facilities and 330,000 trained individuals (40 per cent women).

He said externally commissioned third party independent evaluations reveal a 21 per cent increase in the mean personal income of the borrowers, a 13 per cent increase in the mean household incomes, 19 per cent increase in average on household consumption, 14 per cent increase in food items consumption and a 16-26 per cent increase in assets.

He said the Poverty Alleviation Fund has disbursed assistance for 120,000 housing units, trained over 100,000 individuals in seismic-reconstruction technologies, rehabilitated over 400 damaged water and infrastructure schemes and reconstructed 19 health & education facilities in the quake-hit areas.

CEO PPAF said one of the unique features PPAF interventions is the induction of new and emerging technologies like microhydels, windmills, bio-gas and solar technology to cater to the ever-increasing energy needs, especially renewable, in less developed areas of the country.

PPAF has also established a dedicated Water Management Center with geographical information system (GIS), he added.


----------



## Neo

*SBP to raise forex exposure limit of ADs from 15th​*
KARACHI: State Bank of Pakistan has decided to raise the foreign exchange exposure limit of authorised dealers to 20 percent of their paid up capital (free of losses) with a maximum cap of Rs 2 billion from June 15.

Previously, it was 15 percent of their paid up capital with a maximum cap of Rs 1.5 billion. SBP said it had taken this decision in order to adjust the FEEL of ADs according to the changed market conditions & trade volumes. However, SBP reserves the right to assign the FEEL of any AD below 20 percent of Paid-up Capital (free of losses), based on the trends observed in the utilization of FEEL. The FEEL of ADs would now be reviewed annually on the basis of annual audited accounts and any changes would be communicated to each AD individually through separate letter, said the central bank.

In the case of banks incorporated in Pakistan the limit would cover all the branches including overseas branches, if any. The assigned FEEL should be meticulously adhered to and any breaches would attract penal actions, said the central bank. The guidelines for calculating the aggregate foreign exchange exposure as conveyed vide Para 4 of FE Circular No 12 dated May 29, 1999 would remain unchanged, SBP said.


----------



## Neo

*Pak-Iran gas project: Pakistan to save $1bn on oil import bill​*
ISLAMABAD: Adviser to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain on Wednesday claimed that the government would save $1 billion in oil import bill annually after the import of Iranian gas under Iran-Pakistan (IP) gas pipeline project.

Talking to a group of journalists the adviser disowned that Pakistan had signed a deal with Iran at a higher rate. Iran was also importing gas from Turkmenistan at the rate of 10 per MMBTU and Iranian had made commercial deal with Pakistan, he maintained. Iran had an option to sell gas in LNG form if Pakistan had not moved ahead on the project.

Iranian gas would be used for the power generation and it would about 24 percent cheaper than power produced by furnace oil. The capital cost for the Pakistan section of the 42-inch pipeline was estimated at $1.25 billion and cost of the pipeline would be secured in only one-year, as Pakistan would be saving $1 billion import bill per annum, he said. He said that Pakistan had offered gas price linking to 45 percent of crude oil in 2007 and Iranian government had not accepted the offer price.


----------



## Neo

*Rs 150bn subsidy allotted in budget 2009-10​*
ISLAMABAD: At least Rs 150 billion will be set aside in the next budget as subsidy, a private news channel reported on Wednesday. The channel said the subsidy included the remaining Rs 1.5 billion for research and development support for the textile sector. Also, FATA would be given Rs 24 billion under the power head from this subsidy, it said. The channel said Rs 4 billion would be allotted for the Benazir Tractor Scheme and Rs 30 billion for the fertilizer industry. The subsidy for tube wells in Balochistan would be Rs 8 billion and Rs 7 billion for the small power consumers would be allocated, the channel said.


----------



## Neo

*Government may miss even revised export target​* 
ISLAMABAD (June 11 2009): The government might miss even the revised export target of $19.5 billion for the current fiscal year as the latest trade figures of the Federal Bureau of Statistics (FBS) show that exports during the first 11 months of the current fiscal year remained $16.262 billion

The original export target of $22.1 billion for 2008-09 was revised by the government. Official trade figures released here on Wednesday show that the country's total exports stood at $1.499 billion in May. It seems almost impossible to register $3.23 billion exports in the last month ie June 2009 to meet the revised target.

The trade deficit ballooned to $15.221 billion during July-May 2008-09 with imports twice to the total exports. Analysis of the data showed that trade deficit during the current fiscal year was 19.03 percent less as compared to the same period of last year mainly because of contraction in imports. During the same period of last year trade deficit stood at $18.797 billion.

Analysis of the monthly trade data showed that trade deficit during May was $1.061 billion as a result of $2.56 billion imports compared to $1.499 billion exports.

Trade deficit in May over previous month witnessed a decline of 26.07 percent because of slight increase in exports. Exports May increased to $1.499 billion compared to $1.362 billion of previous month, showing 10.08 percent increase. Imports also showed a decline of 8.47 percent during May over previous month to $2.56 billion from $2.798 billion.

A comparison between May 2009 and 2008 shows decline in both exports and imports. Exports declined by 21.91 percent and imports by 34.02 percent during the period under review. With this decline exports have come down to $1.499 billion in May2009 from $1.920 billion of the same month of last year while imports have declined to $2.561 billion from $3.882 billion.

The high trade deficit as well as dwindling exports throughout the year has been the biggest problem for the economic managers as the country was facing sever energy shortage.

The textile industry, which in the past remained the major driver of export growth, remained sluggish owing to high input cost and non-availability of power. Economists believe these issues demand serious rethinking and solid steps for export boost.


----------



## Neo

*Energy sector tops Rs 421 billion proposed PSDP outlay​* 
LAHORE (June 10 2009): With major emphasis on energy sector development, the Public Sector Development Programme (PSDP) with total outlay of Rs 421 billion has been finalised by the Planning Commission. The energy sector spending, sources said, comes to 33 percent of the total PSDP. To overcome energy shortage, investment by the government and Wapda from its own resources during 2009-10 would be around Rs 139 billion for power generation and conservation.

This would not only make available additional power but also help reduce cost of doing business, sources added. Allocation for health sector has been increased by 82 percent from Rs 14 billion to Rs 26 billion, reflecting overall continuous emphasis on improving the productivity of human capital and general quality of life. Major programmes include EPI (Rs 6 billion), MCH (Rs 3 billion) and Primary Health Care (Rs 7 billion).

The number of Lady Health Workers (LHW) will be increased during the next financial year to: achieve the target of 200,000 and provide health facilities at the doorstep in rural areas, sources said. Allocation for education and training has been increased from Rs 20 billion to Rs 32 billion (60 percent) so as to ensure availability of qualified human resources to match the highly competitive world market.

Productivity of Pakistani labour is very low as compared to other countries. To sharpen the skills of the labour force, Hunarmand Pakistan Programme is being financed. This programme will help improve skills of labour, which will create more demand for them both at home and abroad.

Major initiative in power sector is initiation of Basha Diamer Dam during 2009-10. Both the government and Wapda would arrange finances. In addition to hydel, said the sources, nuclear sources would also be used for power generation; projects such as C3, C4 with an investment of Rs 190 billion are being initiated. These projects would generate 600 MW electricity by 2016, sources said. Water sector allocation has been proposed Rs 58 billion which comes to 14 percent of the total federal programme.

According to the sources, 32 small and medium darns, 8 in each province are being financed under the proposed PSDP. Similarly, adequate allocation has been made to projects such as national programme of watercourses, irrigation system rehabilitation, lining of canals and distributions, etc.

In order to complete Mangla Dam Raising Project (including resettlement) Rs 12.0 billion have been proposed. The Wapda will be able to store 2.88 MAF additional water during next monsoon season, they said. On transport and communication sector, allocation of Rs 70 billion has been made. Of this amount, said the sources, about Rs 45 billion are proposed for NHA, and Rs 11.7 billion for Railways. This would ensure economic integration and balanced regional development, they added.

Under the new initiative of the government, to reduce poverty, provide employment, better quality of life, promoting good governance, skill development special initiatives have been launched. These included establishment of technical institutes of international repute in 27 Districts all over the country with a total cost of Rs 7 billion. Further continuation of income support fund involves social protection initiative with a total outlay of Rs 70 billion.

Housing programme for the poor and government servants was started during 2008-09. This programme would continue with an allocation of Rs 1 billion. This amount would be used as a revolving fund, sources said. Similarly, integrated agriculture marketing and storage infrastructure project is being initiated to ensure food security which in return help reduce poverty and better quality of life in the shape of higher incomes to farmers.


----------



## Neo

*Substantial fall in FDI inflows in 2008-09​* 
ISLAMABAD (June 11 2009): Pakistan has witnessed a substantial fall in foreign direct investment (FDI) inflows in 2008-09 in line with all other developing countries. However, the case of Pakistan is exacerbated by the deteriorating security environment.

According to the Economic Survey (2008-2009), US kept its distinction of being the largest investor with 23.2 percent stake in the FDI. Other big investors originated from Mauritius (10.0 percent), Singapore (7.7 percent), UK (6.9 percent), Switzerland (6.6 percent), UAE (5.3 percent) and Hong Kong (3.9 percent).

The communication sector (including Telecom) spearheaded the FDI inflows by accounting for 27.3 percent stake during July-April 2008-09 followed by financial business (22.4 percent), energy including oil and gas and power (22.7 percent), and trade (4.9 percent). The current wave of uncertainty in the global demand and economic activity in the country has a major backlash on FDI inflows.

The overall foreign investment during the first ten months (July-April) of the current fiscal year has declined by 42.7 percent and stood at $2.2 billion as compared to $3.9 billion in the same period of last year. The overall foreign investment has two components - foreign direct investment (FDI) and portfolio investment, ie, investment in the equity market.

Foreign direct investment (private) showed more resilience and stood at $3205.4 million during the first ten months (July-April) of the current fiscal year as compared to $3719.1 million in the same period last year thereby showing a decline of 13.8 percent. Private portfolio investment on the other hand showed an outflow of $451.5 million as against an inflow of $98.9 million during the comparable period of last year.


----------



## Neo

*Survey points to poor performance of FBR​* 
ISLAMABAD (June 11 2009): The Economic Survey 2008-09 has said that the Federal Board of Revenue (FBR) had shown very poor performance during 2008-09, which was evident from the substantial downward adjustment of FBR tax revenue-to-GDP ratio. The economic survey said that average growth of FBR tax collections was calculated at around 16 percent during 2000-09 as compared to the growth rate of 12 percent during the preceding decade of the 1990s.

If this increase is seen in isolation of the nominal GDP growth rate, the growth rate from 12 to 16 percent shows the positive impact of tax reforms. However, the falling tax-to-GDP ratio implies that nominal GDP grew at a faster pace than tax growth.

With excise comprising 9 percent of total FBR revenues, Pakistan's tax revenue-to-GDP stood at around 9 percent of GDP during 2008-09. The indirect tax-to-GDP ratio stood at around 5 percent, and direct tax-to-GDP ratio at around 4 percent during 2008-09. This indicates that substantial tax policy measures are still needed to broaden the tax base and strengthen tax administration.

To achieve a tax-to-GDP ratio of around 15 percent, it is important to extend coverage of the tax net to the under-taxed and un-taxed sectors of the economy to promote judicious distribution of tax burden among various sectors. The survey says that FBR taxes in relation to GDP need serious review, and efforts must be made to extend the tax base to unexplored areas.

The current fiscal year is yet another reflection of the dismal performance of the FBR. The target of Rs 1250 billion was consistent with a nominal GDP growth rate of 17.5 percent. However, notwithstanding nominal GDP growth rate of around 24 percent, the FBR revenue grew by just 19 percent, thus leading to substantial downward adjustment of FBR tax revenue-to-GDP.

The share of direct taxes in federal tax receipts increased from 18 percent in the early 1990s to 32 percent in 2000-01. The share further increased to 39.6 percent in 2008-09. However, direct tax-to-GDP accounted for only 4 percent, in comparison with 7 percent for other developing countries at the same level of development. The indirect taxes currently account for 60 percent of total revenues, but in terms of percent of GDP they compare poorly with peer countries.

General sales tax accounts for more than 60 percent of the indirect taxes, which makes it the second major source of federal tax revenues after direct taxes accounts for 38 percent of total tax collections. This indicates that there is enormous potential for GST to convert it to full value-added tax.

On the other hand, customs collection reduced sharply over the past decade, mostly induced by trade liberalisation. It increased sharply from 2002-03 as a result of tremendous surge in imports owing to spike in aggregate demand. Customs collection as percentage of GDP declined from 3.4 percent in 1993-94 to 1.2 percent in 2008-09.

Customs duties accounted for 22.5 percent of the total indirect taxes as compared to 25 percent of last year. The current year has unique distinction as it witnessed massive fall in imports in response to demand compression measures as well as fall in international oil and commodity prices.

The FBR revenue collection for the fiscal year 2008-09 was targeted at Rs 1250 billion at the time of presentation of the 2008-09 Federal Budget. Tax collection during first ten months (July-April) of the current fiscal year amounted to Rs 898.6 billion, which was 17.7 percent higher than the net collection of Rs 763.6 billion in the corresponding period of last year.

Net and gross collections have increased by 17.7 and 17.1 percent respectively. The overall refund/rebate payments during first ten months of the current fiscal year have been Rs 61.3 billion as compared to Rs 55.8 billion paid back during the corresponding period of last year.

Tax collection performance felt the heat of the slowing economy and falling imports. Customs duty collection deviated from its recent past track record of high growth mainly because of the fact that dutiable imports underwent negative growth. Notwithstanding its meagre share even in indirect taxes, federal excise duty collections registered a vibrant growth of 27.6 percent.

Sales tax collections also rely heavily on imports and the sales tax at import stage witnessed marginal growth. On the other hand, a 47 percent growth in sales tax on domestic economic activity helped it to grow overall by 22.2 percent. When viewed in the backdrop of 23 percent growth in national income, the growth of 16.9 percent in direct tax looks dismal.

The overall FBR tax collection remained less than satisfactory, and actually witnessed deceleration in real terms. Consequently, the FBR tax collection to GDP ratio is likely to deteriorate to around 9 percent of GDP against the target of bringing it into the vicinity of 10 percent of GDP. Apart from FBR revenue, total tax revenue growth also lagged behind growth in nominal GDP; it exhibits a decline in tax-GDP ratio from 10.3 percent in 2007-08 to around 10 percent in 2008-09.

Direct tax as a major source of FBR tax revenues for the last two years contributed 37 percent of total FBR receipts during Jul-April 2008-09. Net collection was estimated at Rs 332.5 billion, against the target of Rs 496 billion. Hence, gross and net collection registered a growth of 19.3 percent and 16.9 percent during Jul-April 2008-09.

The current fiscal year witnessed a shortfall in collection of direct taxes for the second consecutive year. The entire shortfall will be difficult to replenish in the remaining months of 2008-09 due to a likely fall in corporate earnings, on account of a realisation of impairment losses arising from a decline in the value of financial assets.

Improved tax efforts and effective implementation of tax policy and tax administrative reforms have resulted in higher tax collection over the years. The share of direct taxes in federal tax receipts has increased from 15 percent in the early 1990s to around 37 percent in 2008-09.

Indirect taxes grew by 18.2 percent during July-April 2008-09 and accounted for 62 percent of the stake in overall tax revenue. Within indirect taxes, sales tax increased by 22.2 percent. The gross and net collection of sales tax stood at Rs 380.0 billion and Rs 358.9 billion, respectively.

Sales tax on domestic production and sales contributes to 54.2 percent of net collection, while the rest originates from imports. Within net domestic sales tax collection major contribution came from POL products, telecom services, natural gas, sugar and cigarettes. On the other hand, POL products, edible oil, plastic resins, vehicles, iron and steel and machinery and mechanical appliances had major contribution at the import stage collection of sales tax.


----------



## Neo

*PSDP of budget 2009-10: Rs 39 billion allocated for Bhasha dam, Neelum-Jhelum hydro projects​* 
ISLAMABAD (June 11 2009): Government has allocated Rs 39 billion for Diamer Bhasha dam and Neelum-Jhelum hydropower project in the Public Sector Development Programme (PSDP) of upcoming budget 2009-10. Sources revealed to the Business Recorder that government has allocated Rs 8 billion for acquisition of land and Resettlement Plan, of Bhasha dam in the upcoming budget.

The total amount to be spent for the plan has been estimated at Rs 60.05 billion. An amount of Rs 15 billion has been allocated for "Construction of Diamer Bhasha dam" for 2009-10, the total cost of which has been assessed at Rs 805.087 billion. Government has allocated Rs 16 billion for Neelum-Jhelum Hydropower project in AJK with total cost of the project is Rs 84.502 billion.

Government has allocated Rs 22.967 billion for 800 MW Guddu Steam Power Project and Rs 18.418 billion for 500 MW combined cycle plant at Chicho Ki Malian. The amount of Rs 13.676 billion has been allocated for 425 MW combined cycle Nandipur Power Plant.

Government has allocated Rs 12 billion for Raising of Mangla dam including resettlement and Rs 2 billion for Gomal Zam dam. Islamic Development Bank (IDB) has also pledged $140 million loan for Neelum Jhelum Hydropower Project in AJK and Pakistan and IDB have inked Memorandum of Understanding (MoU) in this regard.


----------



## Neo

*Call to develop Pakistan's soft power​* 
KARACHI (June 11 2009): Ambassador G R Baloch on Wednesday stressed the need of developing the world trade alliance with the international corporate sector to lure the foreign companies to invest in Pakistan.

Giving a presentation on "Developing Pakistan's Soft Power," at The Pakistan Institute of International Affairs (PIIA), Baloch who is also DG Research of Foreign Affairs Ministry apprised the audience that the corporate sector's role in acquisition of soft power will have a positive impact on the country.

Defining the soft power, he said that it rests on culture, political values and foreign policy with moral values and legitimacy. To achieve it, he suggested an independent and credible foreign policy which should be legally and morally correct on the global political and social issues.

In the context of objectives and tools of cultural diplomacy, he said that there should be a spread of Pakistan's culture and language through television and radio into the world community to make it think of this part of the globe too. He preferred building of soft power over the hard power namely nuclear capability, hi-tech submarines and so on to protect the country's integrity and borders.

Also defining the culture diplomacy, Baloch said that it is also a form of diplomacy aimed at boosting relations among the countries, which could be on the basis of literature, language, religion, music, sports etc. He said that such diplomacy is important to give projection to the country's rich cultural heritage, establishing people-to-people contact through culture.

He warned that Pakistan could be lost in the global cultural war if it failed to assertively promote its cultural values internationally. He said that the Pakistan's cultural policy exists since 1969 needs a revision which strongly emphasises on culture of tolerance and harmony.


----------



## Neo

*Economic Survey 2008-2009: paints a dreary picture​*
EDITORIAL (June 11 2009): The Economic Survey 2008-09, a copy of which was published in the newspaper yesterday - prior to its formal launch, contains no surprises. The entire set of macroeconomic indicators revealed in the Survey were being cited constantly, as and when available, as they were required during critical quarterly negotiations with the International Monetary Fund (IMF) staff to assess whether targets set for the programme were met - a requirement for the release of the next tranche.

Thus the scaling down of the growth rate, from 4.5 percent target to 2 percent was already known. What however was not known was the fact that this growth rate was the lowest in the region: Bangladesh had a growth rate of 5 percent, India 4.5 percent and even Sri Lanka experienced a growth rate of 2.2 percent.

In effect external factors alone, namely global recession, cannot account entirely for the disparity in growth figures between South Asian countries which largely produce similar products and therefore are competitors in the world market. The main reason behind the slippage in growth according to the Survey is the "massive contraction in the industrial sector."

The list for this dismal performance is rather exhaustive: "major disruptions of extraordinary nature like political uncertainty hovered around for most part of the year, intensification of war on terror, acute energy shortage and a plummeting exchange rate with extremely high inflation by Pakistan's standard, massive adjustment efforts to regain stability from a highly disruptive year (2007-08) of exceptionally high macroeconomic imbalances, and above all significant demand compression both on domestic and external front."

No one can challenge the multiplicity of factors that have negatively impacted on the manufacturing sector with large scale manufacturing registering a negative 7.7 percent growth rate during the year. Major contributors to this decline were: automobile group (negative 39.0%) followed by electrical (negative 31.3%), petroleum (negative 9.2%), food, beverage and tobacco (negative 10.5%), steel products (negative 5.62%), tyres and tubes (negative 4.0%) and textile (negative 0.73%).

The textile sector most affected by the global recession witnessed a decline of 7.6 percent in its export performance with cotton yarn's export performance declining by 15.5 percent, bed wear declining by 11.7 percent and ready made garments by 13.1 percent. The Survey looked at four public sector corporations and excluding Pakistan Steel noted that production value of all operating units under three corporations (NFC, PACO and SEC) decreased by 32.90 percent against the same period last year.

Privatisation never did become the focus of the present government, a lack that appears to be steeped in PPP's ideology. Small and medium enterprise sector mainly include wholesale and retail trade and restaurant and hotel sectors. This sector too suffered due to law and order problems in the country. Mining and quarrying registered a flat growth of 1.3 percent however given the potential of this sector this flat rate can be viewed as continued failure to develop this sector.

Services sector's contribution to GDP grew by 3.6 percent against a target of 6.1 percent and last year's actual growth of 6.6 percent. The reason the Survey argues is "due to poor show of the financial sector beside saturation level attained in the communication sub-sector". The GDP growth rate is largely accounted for by the agriculture sector and the output of major crops mainly wheat, gram and rice.

The reason can be partly accounted for by higher than the average rainfall this year during the monsoon season as well as during the winter season. The increase in the support price of wheat was instrumental in many a farmer cultivating the crop. In addition July-March credit to the farm sector rose by 9.6 percent in 2008-09 in marked contrast to negative 34.7 percent in the corresponding period last year.

But what is of great significance is not the green tractor scheme, where price differential between local and imported tractors has become an issue, or higher credit to the subsistence farmers but to the crop insurance scheme that would be mandatory for all the five major crops and the government would bear the premium for the subsistence farmers up to a maximum of two percent per crop. However this scheme has not yet been launched.

Total investment increased by average around 19.7 percent - a decline from last year's growth of 22 percent. The Survey acknowledges that "gross fixed capital formation could not maintain its strong growth momentum and real fixed investment growth contracted by 6.9 percent."

A decline in investment has a multiplier effect on the growth rate and it is little wonder that the growth rate declined to two percent. Foreign direct investment (private) showed more resilience and stood at $3205.4 million during the first ten months (July-April) of the current fiscal year as compared to $3719.1 million in the same period last year thereby showing a decline of 13.8 percent.

Private portfolio investment on the other hand showed an outflow of $451.5 million as against an inflow of $98.9 million during the comparable period of last year. National savings rose marginally to 14.3 percent from the previous year's figure of 13.5 percent in spite of the rise in interest rates by the National Savings Centres.

The reason could well be that with inflation at over 20 percent, with food inflation over 25 percent, and with the withdrawal of subsidies on oil and products, including energy, negative growth in large scale manufacturing that impacted negatively on employment levels there was simply not enough disposable income that could be saved for future consumption.

Thus it is no wonder that the Survey notes that "consumer spending remained strong with real private consumption rising by 5.2 percent as against negative growth of 1.3 percent attained last year". Foreign currency debt rose from 40.7 billion rupees in 2007-08 to 43.8 billion rupees in 2008-09. This rise is about average with foreign currency debt at 36.75 billion rupees in fiscal year 2007 and 33.9 billion rupees in 2006.

Rupee debt as was expected under the IMF programme declined from 54.4 billion rupees in 2007-08 to 51.6 billion rupees in 2008-09. The Survey pointed out that "due to sustainable debt policies and favourable rescheduling of debt, external debt and liabilities (EDL) as a percentage of GDP declined from 51.7 percent in end-June 2000 to 28.3 percent by the end of June 2007 (Musharraf era).

By end-March 2009, EDL as a percent of GDP stood at 30.2 percent, increasing by 2.1 percentage points." This is a disturbing trend indeed. In addition the Survey notes that interest payments exceeded the budgeted level by 61 billion rupees, a situation that is unacceptable as interest payments are on past loans and failure to budget for these payments can be seen as indicative of deliberate misrepresentation on the part of the government.

And finally the tax to GDP ratio did not improve due to mainly "structural deficiencies in the tax system and administration, both at the federal and provincial government levels." This was identified by the government in its Letter of Intent submitted to the IMF Board prior to the release of the stand-by facility and unfortunately it remains an issue almost seven months down the line. This is the area that needs urgent targeting in the forthcoming budget for fiscal year 2009-10.

Another disturbing development, apart from growth, low savings and investment and increased indebtedness, was that inflation is still stubbornly high despite a very tight fiscal policy followed during the year under the advice of the IMF. A high inflation, particularly in the food group, along with rampant unemployment and rising poverty is devastating for the ordinary people and a kind of alarming bell for the policy makers.

This also raises the question regarding the efficiency of strict demand management in ensuring financial stability in the country. The argument both in favour and against strong demand management are now voiced openly and even Asian Development Bank has now joined the debate and argued against the strict policy framework prescribed by the IMF under SBA.

Hopefully, the Ministry of Finance and the State Bank would try to take a more balanced view during 2009-10 in order to reconcile various objectives to spur growth with price stability and mitigate the problems of common man, who seems to be on the verge of losing patience. We know the difficulties of the government when it is faced with so many challenges but major slippages on the economic front at this juncture could be very harmful and compound the problems further.


----------



## Neo

*Debt forgiveness​*
EDITORIAL (June 10 2009): It is quite clear that Pakistan is trying desperately to overcome its financial woes in a crunch situation through every possible means. After considerable assistance from multilateral institutions such as IMF, World Bank and the Asian Development Bank and substantial commitments from the Forum of Friends of Pakistan, it has now asked the United States to write off its debt to help overcome the economic crisis caused by the war on terror, displacement of people from the Malakand region and global recession.

Such a request was made by Prime Minister Yousuf Raza Gilani during a meeting with the US envoy for Pakistan and Afghanistan, Richard Holbrooke, who is reported to have said that his country would look into the matter. Pakistan, it may be mentioned, owes dollar 1.35 billion to the US. Prime Minister also urged the US administration to initiate action in the Congress for a substantial increase in aid and to put military supplies for Pakistan's campaign against terrorism on a fast track.

However, he acknowledged that the US had helped Pakistan in providing relief to the displaced people through an aid package of more than dollar 300 million and expressed the hope that major European and Muslim countries would also follow the US lead and come up with timely assistance.

Although, it does not seem very appropriate for a sovereign state to make such a request and Pakistan should have been able to confront the present multidimensional crisis with its own resources, given the enormity of problems at present, there was probably no alternative for the Prime Minister but to ask the international community, particularly the US, for a helping hand.

The truth of the matter is that even in normal times, the country was obliged to seek considerable inflows of foreign resources to meet current account deficit year after year with the result that total external debt and liabilities of the country had risen from dollar 40.5 billion in June, 2007 to dollar 46.3 billion at the close of FY08 and now are estimated at over dollar 50 billion, which is about 30 percent of the country's GDP.

At the end of June, 2008, debt owed to Paris Club and multilateral agencies was dollar 13.9 billion and dollar 21.6 billion respectively and must have risen further by a few hundred million dollars by now. Total debt servicing of the country consumes nearly 45 percent of the total revenues of the government. Debt servicing in the recent years would have been higher if external debt would not have been rescheduled earlier at the Paris Club by the lending countries.

With the rescheduled amount becoming due, and high expenditures on the ongoing war against terrorism, the country is bound to face further funding problems and there is no other way to tide over the situation but to call on the friendly countries for writing off their old debts and extend more assistance.

Besides, they must be asked to give preferential treatment and better access to our exports in their markets at least till the time Pakistan is faced with the extremely difficult situation. If this is not done bilaterally, the country may be forced to go to the Paris Club once again. We feel that the request of the Prime Minister is fully justified because the stakes are very high.

Everybody knows that infrastructure has been badly damaged by the Swat Operation, which had become inevitable, and the timely provision of efficient infrastructure and other basic needs such as health, education and justice have become very crucial and urgent in stemming the tide of militancy. Such an effort would require huge infusion of resources.

However, it needs to be pointed out that while the country is asking for all kinds of assistance including cancellation of debt from other countries, the government of Pakistan also must tighten its belt and prove to the world that it is serious in meeting the challenge and also prepared to make the necessary sacrifice.

Besides, it needs to be understood that the request of debt forgiveness has not been made at a very high level and it is still too early to say whether or not the relevant US authorities would be prepared to consider it with seriousness that it really derserves. The US Senate, in particular, is generally very careful in offering such concessions at taxpayers' expense.


----------



## wtf

An economy in recession

An economy in recession

Much of what was unveiled by the ministry of finance via the Economic Survey 2008-09 was expected and served to only confirm that the economy is well and truly in recession. *A telling statistic was the reduction in imports for 2008-09 -- by over 26 per cent compared to the previous year.* Since a country's imports are a direct correlation of its income and GDP, the single statistic alone should be enough to confirm that the economy is now on a recessionary path. *Another related statistic is growth in the manufacturing sector which actually shrank by 3.3 per cent during 2008-09 compared to an increase of 4.8 per cent last year *(large-scale manufacturing, a sub-head, shrunk by 7.7 per cent). The economy's growth rate was markedly down from estimates made at the beginning of the financial year  when it was predicted to be well above five per cent  at a worryingly low two per cent. This is more or less half of what the economy managed to achieve during 2007-08 which was first put at 5.8 per cent and has now been clipped to 4.1 per cent  which means a reduction by almost 50 per cent! This is to be expected given the significant pressures on the economy: the worldwide recession (*other countries have suffered far worse*, a case in point being several EU states where GDP is predicted to actually in real terms) and the fallout of the war on terror in terms of a vastly deteriorated law and order situation and its obvious consequence in terms of a negative outlook for business and investment prospects.

As far as poverty reduction is concerned, the government has promised a 'rapid' household income and expenditure survey given that by *World Bank estimates the poverty rate 'could rise' to over 25 per cent by 2009-10. The survey also cites an internal report by economists of the Planning Commission based on 2004-05 poverty figures according to which the poverty rate is estimated to be around 29.9 per cent by 2008-09. *An estimate of the poverty rate by the government's taskforce on food security is also mentioned in the survey according to which the poverty rate could be as high as 36.1 per cent by 2008-09. This is a startling though not entirely unforeseen or unexpected figure given the state of the country's marginalised and displays a singular lack of initiative and planning by successive governments to lift the poor out of poverty. While the intention to conduct a 'rapid' survey to ascertain the actual figure is well and good, the government needs to take urgent measures to rejuvenate the obviously inefficient current poverty reduction initiatives.

On other matters, the survey says that the fallout in terms of investment inflows on the economy of the war on terror was particularly severe during 2008-09. According to the document, the government's "overall vision is to regain macroeconomic stability and to attain GDP growth rate of six per cent by 2012-13 from two per cent in 2008-09". This may seem an unrealistic goal for now given that one of the major burdens on the economy  the war on terror  is perhaps only going to get worse in the foreseeable future and its effects on the economy could become even more adverse than they have so far been. This also means tripling the growth rate  two per cent for 2008-09  within the next three to four years, with the state of the world economy uncertain. Furthermore, a key component of any such growth potential being realised is the business outlook and investment prospects, which in turn are largely dependent on perceptions related to law and order, and in that regard surely a sea change needs to take place before foreign  or even domestic -- investors appear positive about investing in Pakistan in next year or two years. Also, we do not seem to be putting to good use taxes that are collected  the survey says that interest payments as a percentage of total expenditure for 2008-09 were 23 per cent which means roughly a quarter of all resources are spent on not even repaying any debt but simply on paying the interest on it.

The survey cites a so-called "nine-point programme" by the government to give the economy a boost. Some of them such as "protecting the poor and the vulnerable" are in direct contradiction to the programme's other points, such as "strong adjustments" to petroleum prices or "periodic adjustments" to energy prices because in both situations it is those in the low- and middle-income brackets whose household budgets are hit the most. Surely, elimination of subsidies is not going to help the government achieve any significant reduction in poverty. In other crucial sectors, the survey confirms the government's dismal  or rather non-existent -- efforts to improve the quality of life for most Pakistanis. Consider the energy sector where the survey says that Pakistan's installed generation capacity increased by a mere 188 megawatts  from 19,566MW to 19.754MW  during 2008-09, and hence, no wonder that the people of the country have to undergo endless hours of loadshedding. Surely, more funds need to be set aside for this very important sector, not least because demand vastly outstrips current supply. Also, in this regard, the inflation rate of 22.3 per cent (for the first 10 months of 2008-09  food inflation was 26.6 per cent) is simply far too high to allow for any tangible reduction in poverty levels any time soon and is bound to hit low- and middle-income families particularly hard. Monetary policy measures taken to contain this figure are clearly not bearing fruit  not at least yet.

As far as the telecom sector is concerned, much of the growth took place in mobile phones and the figures released by the survey only reinforce the belief that monopolies in the fixed land-lines sector (now in the private sector) perhaps need to be broken so that consumers can benefit and the teledensity figure (for land lines) goes up. Looking towards social services, the survey admits that public expenditure on education as a percentage of GDP is 'lowest' in Pakistan because of 'fiscal resources constraint'. We should call a spade a spade and say clearly that the reason this happens is that we are not willing to divert funding from defence and the running of the government (traditionally the largest and second largest heads of spending in a typical budget) to educating our people. The reason is not 'fiscal resources constraint' but failure by governments (or perhaps their inability) to set their priorities right for future generations. Spending on defence is all well and good but what point is having nuclear weapons when 70-75 million people are illiterate and cannot read and write (and this is by the government's literacy rate of 56 per cent).


----------



## wtf

The above is only the results of a sample survey and are over a shorter period. The data is from Pak govt., but the commentary is entirely from the newspaper.

Full reports should come in later and that would give a clearer picture. 

My 2 cents -
The imports data should not be really worrying since Pak currency has depreciated and hence imports are naturally expected to fall. The numbers are proportionate, so the basic economy has not suffered.
The 4% shrinkage in manufacturing on the other hand is cause for concern. In a depreciating currency scenario and when the country is labour intensive rather than capital intensive, the manufacturing should have grown. But the fall is really worrying. Coupled with inflation, the symptoms point to a stagflationary economy (or a sideways recession).


----------



## dherky

it been really a long time since i heard a good news from pakistan
what is going on guys...


----------



## ejaz007

*Remittances increase 20% to $7.076 bn in July-May FY09*

KARACHI: Remittances sent home by overseas Pakistanis continued to show a rising trend as an amount of $7.076 billion was received in the first eleven months (July-May) of the current fiscal year 2008-09, showing an increase of $1.172 billion or 19.86 percent over the same period of the last fiscal year. The amount of $7.076 billion includes $0.46 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

In May 2009, an amount of $720.68 million was sent home by overseas Pakistanis, up 23.25 percent or $135.93 million, when compared with $584.75 million received in the same month last year. This is the second highest amount of remittances received in a single month. Earlier, the overseas workers had sent the highest-ever amount of $739.43 million as remittances in March 2009.

The inflow of remittances in the Jul-May, 2009 period from USA, UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1,581.48 million, $1523.89 million, $1,407.23 million, $1,094.54 million, $537.11 million and $224.71 million respectively as compared to $1,618.46 million, $1,002.01 million, $1,127.65 million, $892.41 million, $420.79 million and $162.66 million respectively in the July-May, 2008 period. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first eleven months of the current fiscal year 2008-09 amounted to $706.84 million as against $677.49 million in the same period last year.

The monthly average remittances for the period July-May 2008-09 comes out to $643.30 million as compared to $536.71 million during the same corresponding period of the last fiscal year, registering an increase of 19.86 percent. During last month i.e. May 2009 remittances from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $157.10 million, $145.83 million, $143.16 million, $98.52 million, $69.13 million and $28.18 million respectively as compared to $94.49 million, $154.73 million, $125.94 million, $97.23 million, $41.76 million and $15.01 million in May 2008. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during May, 2009 amounted to $78.75 million, up from $55.43 million received in same month last year. staff report

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## ejaz007

dherky said:


> it been really a long time since i heard a good news from pakistan
> what is going on guys...



We are putting our house in order. Wait a bit and you shall hear a lot of good news.


----------



## wtf

ejaz007 said:


> *Remittances increase 20% to $7.076 bn in July-May FY09*
> 
> KARACHI: Remittances sent home by overseas Pakistanis continued to show a rising trend as an amount of $7.076 billion was received in the first eleven months (July-May) of the current fiscal year 2008-09, showing an increase of $1.172 billion or 19.86 percent over the same period of the last fiscal year. The amount of $7.076 billion includes $0.46 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).
> 
> In May 2009, an amount of $720.68 million was sent home by overseas Pakistanis, up 23.25 percent or $135.93 million, when compared with $584.75 million received in the same month last year. This is the second highest amount of remittances received in a single month. Earlier, the overseas workers had sent the highest-ever amount of $739.43 million as remittances in March 2009.
> 
> The inflow of remittances in the Jul-May, 2009 period from USA, UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1,581.48 million, $1523.89 million, $1,407.23 million, $1,094.54 million, $537.11 million and $224.71 million respectively as compared to $1,618.46 million, $1,002.01 million, $1,127.65 million, $892.41 million, $420.79 million and $162.66 million respectively in the July-May, 2008 period. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first eleven months of the current fiscal year 2008-09 amounted to $706.84 million as against $677.49 million in the same period last year.
> 
> The monthly average remittances for the period July-May 2008-09 comes out to $643.30 million as compared to $536.71 million during the same corresponding period of the last fiscal year, registering an increase of 19.86 percent. During last month i.e. May 2009 remittances from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $157.10 million, $145.83 million, $143.16 million, $98.52 million, $69.13 million and $28.18 million respectively as compared to $94.49 million, $154.73 million, $125.94 million, $97.23 million, $41.76 million and $15.01 million in May 2008. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during May, 2009 amounted to $78.75 million, up from $55.43 million received in same month last year. staff report
> 
> Daily Times - Leading News Resource of Pakistan



The increased remittances would explain the 14% inflation numbers even when the manufacturing sector is flat/slowing. Increased money in the economy causes prices to go up (more money, same amount of products to be bought ). 

Any news on what is causing remittances to increase? The increase in remittances is measured in dollars and the Gulf currencies (most) are pegged to the dollar. This means that Pakistanis abroad either earned 20% more this year or they are sending 20% more to Pakistan this year. I can't believe that Gulf is experiencing a 20% salary hike - from what I know they are actually laying off people.

Not trying to diss on anybody, but trying to find out the root cause of the wealth inflows.


----------



## TopCat

wtf said:


> The increased remittances would explain the 14% inflation numbers even when the manufacturing sector is flat/slowing. Increased money in the economy causes prices to go up (more money, same amount of products to be bought ).
> 
> Any news on what is causing remittances to increase? The increase in remittances is measured in dollars and the Gulf currencies (most) are pegged to the dollar. This means that Pakistanis abroad either earned 20% more this year or they are sending 20% more to Pakistan this year. I can't believe that Gulf is experiencing a 20% salary hike - from what I know they are actually laying off people.
> 
> Not trying to diss on anybody, but trying to find out the root cause of the wealth inflows.



Actual salary for expatriate workers increased as the new recruits are slow and the companies are resorting to existing worker with higher pay. Second contributing factor is strict money laudering law and people are more lean towards sending money through legal channel.


----------



## Neo

*WAPDA, KESC & subsidies largest burden on budget ​* 
*Economic Survey says contingent liabilities in FY09 rose by 27pc to Rs275.89bn​*
Friday, June 12, 2009

ISLAMABAD: WAPDA and the KESC are leading to increased hidden risks to the economy and pressure on the national budget, the Economic Survey 2008-09 revealed.

The Water and Power Development Authority (WAPDA), the Karachi Electric Supply Corporation (KESC) and implicit liabilities in the shape of subsidies to various sectors have been the largest drain on the budget, says the Economic Survey presented by the Adviser to Prime Minister on Finance Shaukat Tarin here on Thursday.

The survey repeated the last years paragraph, saying, Financial improvement plans of the two power utilities are currently under implementation to curtail these outflows, but leakages on these two major heads are increasing every next year and there is no improvement in sight. 

It says that contingent liabilities (both explicit and implicit) during fiscal year 2008-09 rose by 27 per cent to Rs275.89 billion from Rs217.21 billion last year. 

Contingent liabilities are costs the government will have to pay if a particular event occurs. A common example of a contingent liability is a government-guaranteed loan. At the time a guarantee is entered into, there is no liability for the government, since this is contingent upon the borrower failing to repay the loan as contracted. 

It revealed that these liabilities as percentage of the GDP rose to 2.12 per cent in 2008-09 from 2.11 per cent in 2007-08.

Out of total Rs275.89 billion, explicit liabilities stood at Rs72.48 billion in 2008-09, up by 15 per cent as compared to Rs63.05 billion last year, indicating that it would have a direct impact on the federal budget in the shape of cash outflows. 

Implicit contingent liabilities have also increased by 32 per cent to Rs203.44 billion in FY08-09 as compared to Rs154.17 billion in the fiscal year 2007-08. Substantial increase in contingent liabilities reveals more pressure on the economy and points towards less soundness of the countrys financial sector, macro economic policies, regulatory and supervisory system and information disclosure. 

The explicit liabilities of Rs72.48 billion, comprise payments made on account of contractual guarantees issued on Ghee Corporation of Pakistan (GCP), Rice Export Corporation of Pakistan (RECP), Trading Corporation of Pakistan (TCP), Cotton Export Corporation (CEC) and Saindak Bonds; Pakistan Steel Mills Corporations liability payments contractually assumed by the Government and payments to Fauji Fertiliser Company Bin Qasim on account of the 1989 Investment Policy pertaining to the fertiliser industry. 

Of the explicit liabilities, an amount of Rs2.356 billion has been paid on account of Pakistan Railways debt servicing liability (Government guaranteed loans) last year, whereas, in the corresponding period it was Rs2.53 billion. 

Besides, an amount of Rs930 million was paid out as an interest (equity) to the restructured loans and Term Finance Certificates to PIA. GOP has guaranteed interest payments (restructured loans and TFCs) for five years starting in the FY01-02. 

Water and Power Development Authority (WAPDA) borrowed Rs15.59 billion during FY 2008-09 from the National Bank of Pakistan as against Rs8 billion in the corresponding period last year.

From federal budget cash outflow to HBL, ABL, Bank Alfalah, Askari Bank and Brunal Investment Company stood at Rs48.9 billion during the fiscal under review against Rs44 billion last year. 

The govts guarantee against Pakistan Steel Mills stood Rs736 million, PIA (interest on govt guaranteed TFCs and loans) Rs930 billion, FFC Jordan Rs231 million, People Steel Mills Rs155 million, Karachi Shipyard & Engineering Works Rs432 million, KESC system improvement (loan) Rs3 billion in the shape of explicit contingent liabilities. 

Of the implicit contingent liabilities, the largest drain on the budget was on the Water and Power Development Authority (WAPDA) subsidy, non-recovered loans and other loans 113.16 billion against Rs58.72 billion last year. 

The KESCs subsidy against the adjustment of additional surcharge against GST stood at Rs1.28 billion against Rs3.35 billion in the last fiscal. Pakistan Railways other operational shortfalls stood at Rs8.158 billion against Rs4.77 billion last year. 

Subsidy was given to Trading Corporation of Pakistan (TCP) on import of wheat (Rs35 billion), sugar (Rs6.30 billion), and urea (Rs3.0 billion). Cumulative subsidies under these heads given to TCP were, Rs44.30 billion during FY 2008-09. 

Besides, subsidies to the exporters of the textile sector stood at Rs4.81 billion, importers of phosphatic and potashic fertilisers Rs7.65 billion, manufacturers of phosphatic and potashic fertilisers Rs21.03 billion during the year under review.


----------



## Neo

*Exports, imports fall on weak demand ​* 
Friday, June 12, 2009

ISLAMABAD: Exports and imports showed a negative growth in 10 months (July-April) of fiscal year 2008-09 as both domestic and external demand weakened due to global recession, reveals the Economic Survey of 2008-09 on Thursday.

Exports fell by three per cent during July-April 2008-09 against a rise of 10.2 per cent in the same period last year, the survey showed. In absolute terms, exports decreased from $15.22 billion to $14.76 billion in the period under review. The government had set the export target at $22.1bn which was later revised to $19.6bn.

Imports during the period declined by 9.8 per cent compared with the same period last year, reaching $28.92 billion. This came after the government took measures to restrict imports leading to a drop in demand and international oil prices fell substantially. Besides that, depreciation of the rupee also played a significant role in the decline in imports.

According to the break-up, the survey said imports of petroleum group, which accounted for 27.7pc of total imports, fell by 7.6pc to $8.01bn. The decline in imports of the petroleum group was mainly attributed to the massive fall in oil prices in the international market.

Imports of telecommunications sector declined by 54.8pc during July-April 2008-09. It was followed by imports of consumer durable group, which fell by 16.4pc. Raw materials and food groups posted negative growth of 5.2pc and 3.1pc respectively. Machinery was the only group which showed a nominal growth of 0.5pc in imports during July-April 2008-09.


----------



## Neo

* Manufacturing sector posts weakest growth ​* 
Friday, June 12, 2009

ISLAMABAD: Manufacturing sector is the second largest sector of the economy, contributing 18.4 per cent to the GDP. This sector has recorded its weakest growth in a decade during the current fiscal year.

According to the Economic Survey released by Advisor to Prime Minister on Finance Shaukat Tareen, overall manufacturing posted negative growth rate of 3.3 per cent during the current fiscal year against the target of 6.1 per cent and 4.8 per cent of last year.

However, SMEDA plays a vital role in creating market oriented economic growth, employment opportunities and reducing poverty. As many as 16 projects, amounting to Rs1680 million, have been approved for implementation by SMEDA.

Regarding privatization of projects, the survey said that during the current fiscal year, Privatisation Commission completed the transaction of Hazara Phosphate Fertilizer Limited (HPFL), fetching Rs1340.02 million.

Large-scale manufacturing (LSM), accounting for almost 70 per cent of overall manufacturing, witnessed a broad-based decline of 7.7 per cent against the revised growth target of negative 5.0 per cent during July-March 2008-09.

Main contributors towards this broad based decline were the impact of severe energy shortages, deterioration in domestic law and order situation, sharp depreciation in rupee vis-a-vis US dollar, and most importantly, weak external demand on the back of global recession coupled with slowdown in domestic demand.

The increasing trend of inflation also affected consumers to curtail expenditure on durable goods.

Textile sector, being an export-oriented industry of Pakistan and more prone to international demand shocks, has been under severe stress amid a global recession.

However, textile production declined slightly by 0.7 per cent over the same period last year. The textile sector was badly hit by power shortages and weak external demand.

Both cotton yarn and cotton cloth industries, with the largest share of the textile sector, posted negative growth of 0.3 per cent during the first nine months of the current financial year.

Sustained growth in recent years in the cement industry has been an outcome of increase in its production capacity and exploitation of export markets.

The cement sector posted a growth rate of 4.71 per cent during the current fiscal year. Cement exports increased by 48.8 per cent. The fertilizer industry also posted positive growth due to increase in production.

The Steel Mill is producing coke, pig iron, billets, hot rolled coils/sheets, cold rolled coils/sheets, galvanized sheets, etc. The performance of steel mill was unsatisfactory during the current fiscal year. Production value slid down from Rs11133 million in 2007-08 to Rs9971 million in the current financial year, witnessing a decrease of 10.44 per cent.

Mineral potential of Pakistan, though recognized to be excellent, is inadequately developed as its contribution to GDP at present stands at 2.4 per cent. During the current fiscal year (July-March 2008-09), the mining and quarrying sector registered almost flat growth rate ie 0.24 per cent, against 3.0 per cent of last year and a target of 4.5 per cent for the current year.

The growth rate of this sector declined sharply due to the substantial diminishing trend in the production of Sluphere (10.3 per cent) and Dolomite (4.6 per cent).


----------



## Neo

* Govt steps to help enhance per capita income ​* 
Friday, June 12, 2009

ISLAMABAD: The government has taken various initiatives to combat poverty during the year 2008-09, which will help enhance absolute per capita income, net per capita income and widen the scope to earn livelihood, said the Economic Survey of Pakistan released on Thursday.

These initiatives included PPAF, micro finance SME operations, Benazir Income Support Programme (BISP), Peoples Works programme, Pakistan Bait-ul-Maal and Punjab government initiatives including tractor subsidy, sasti roti and Punjab food support scheme.

Agriculture, services and manufacturing sector each is among the largest source of employment for income generation. Although agriculture, barring livestock, has grown faster in 2008-09 than in 2007-08, industry and services sector will register a declining growth rate with shifting pressure for employment to other sectors outside the organised sectors, acceptance of lower grade jobs, lower income and thus lower consumption.

Although persistent growth in per capita income which determines absolute purchasing power, and minimal of inflation, which determines the net purchasing power coupled with least skewed income distribution is required for perpetual decline in poverty incidence, it varies both in terms of space and time governed by domestic and international influent factors.

In this perspective year, 2008-09 has been an exceptional year. International financial crisis after translation into reduced and even negative growth rates the world over, in conjunction with soaring fuel and food prices, are at best estimated to increase poverty estimates the world over.


----------



## Neo

*Finance and insurance sector records negative 1.2 percent growth​* 
ISLAMABAD (June 12 2009): Advisor to Prime Minister on Finance Shaukat Tarin said on Thursday that finance and insurance sector registered a negative growth of 1.2 percent in ongoing fiscal year ie 2008-09 whereas real GDP growth stood at 2 percent against 4.1 percent last year.

While launching Economic Survey 2008-09, Tarin stated that the performance of finance and insurance sector shows that Pakistan's financial sector is integrated in the world economy and is feeling the heat of the crisis plaguing international financial markets.

He said that total investment declined from 22.5 percent of GDP in 2006-07 to 19.7 percent of GDP in 2008-09. Fixed investment fell to 18.1 percent of GDP from 20.4 percent last year. Private sector investment was decelerating persistently since 2004-05 and its ratio to GDP has declined from 15.7 percent in 2004-05 to 13.2 percent in 2008-09.

Public sector investment to GDP ratio, which has been depicting a consistent increase from 4 percent in 2002-03 to 5.6 percent in 2006-07, declined to 4.9 percent in 2008-09. The overall foreign investment during the first 10 months (July-April) of the current fiscal year declined by 42.7 percent and stood at $2.2 billion against $3.9 billion in the comparable period of last year, the advisor said.

He said that foreign direct investment (private) showed some resilience and stood at $3205.4 million during the first 10 months of the current fiscal year against $3719.1 million in the same period last year thereby showing a decline of 13.8 percent. Private portfolio investment on the other hand showed a net outflow of $451.5 million against a net inflow of $98.9 million during the comparable period of last year.

Agriculture sector depicted a stellar growth of 4.7 percent as compared to 1.1 percent witnessed last year. Major crops registered an impressive growth of 7.7 percent against a negative growth of 6.4 percent last year and the livestock sector grew by 3.7 percent against 4.2 percent last year.

The advisor said that the output in the manufacturing sector contracted by 3.3 percent in 2008-09 as compared to expansion of 4.8 percent last year. Small and medium manufacturing sector maintained its healthy growth of last year at 7.5 percent. Large-scale manufacturing depicted contraction of 7.7 percent against expansion of 4 percent during last year.

The massive contraction is because of acute energy outages, a weak security environment and political disruption in March 2009. He said that the services sector grew by 3.6 percent against the target of 6.1 percent and value added in the wholesale and retail trade sector grew at 3.1 percent as compared to 5.3 percent last year. Finance and insurance sector registered negative growth of 1.2 percent in 2008-09.

He noted that the performance of this sector shows that Pakistan's financial sector is integrated in the world economy and is feeling the heat of the crisis plaguing international financial markets. The transport, storage and communication sub-sector depicted a sharp deceleration in growth to 2.9 percent in 2008-09 as compared to 5.7 percent last year.

He said that Pakistan's per capita real income has risen by 2.5 percent in 2008-09 as against 3.4 percent last year. The per capita income in dollar term rose from $1042 last year to $1046 in 2008-09, thereby showing marginal increase of 0.3 percent.

Real private consumption rose by 5.2 percent against negative growth of 1.3 percent attained last year. However, gross fixed capital formation could not maintain its strong growth momentum and real fixed investment growth contracted by 6.9 percent against the expansion of 3.8 percent in the last fiscal year. Large-scale manufacturing witnessed an across-the-board decline of 7.7 percent during ongoing fiscal year against the growth rate of 5.2 percent last year.

Severe energy shortages, deterioration in domestic law and order situation, sharp depreciation in rupee vis-à-vis US dollar and most importantly, weak external demand on the back of global recession coupled with slowdown in domestic demand are responsible factors for sluggish performance of manufacturing sector.

Interest payments surpassed their budgeted level by a significant margin. A sum of Rs 557 billion was budgeted for interest payments in 2008-09. The year is likely to end with interest payments of Rs 618 billion which are higher by Rs 61 billion over budgeted amount.

He said that government borrowing from the central bank has been dampened since December 2008 in line with the target set under the macroeconomic stabilisation programme as part of the IMF Stand-By Arrangement. The government budgetary borrowing from the banking system decreased by Rs 339.9 billion during July-May FY 09 against an increase of Rs 360.4 billion in the corresponding period of FY08.

Credit to private sector grew by Rs 21.8 billion during July-May in ongoing fiscal year as compared to Rs 369.8 billion during the corresponding period last year. Foreign portfolio investment stood at a negative $418.4 million during first nine months of 2008-09.Dismal performance owing to a confluence of factors was exhibited by different sectors of the economy and the dull indicators left a weighty impact on the stock market activity during 2008-09.

He said that the inflation rate as measured by the changes in Consumer Price Index (CPI) stood at 22.3 percent during the first 10 months (July-April) of the current fiscal year ie 2008-09, against 10.3 percent in the comparable period of last year. The food inflation is estimated at 26.6 percent and non-food 19.0 percent, against 15.0 percent and 6.8 percent in the corresponding period of last year.

The increase in inflation rate during the current 2008-09 is attributable to the increase in food price inflation which has been due to increase in prices of wheat, wheat flour, sugar, milk, poultry, meat, fresh vegetables and fruits. Services account deficit shrank by 41.3 percent during July-April 2008-09 to reach $3. billion and financial account contracts from $6,224 million to $3,476 million during July-April against corresponding period last year.

Workers remittances amounted to $6355.6 million in July-April against $5319.1 in corresponding period last year, thereby showing an increase of 19.5 percent. Pakistan's total liquid foreign exchange reserves amounted to $11.6 billion by the end of May 2009.Of which, reserves held by State Bank of Pakistan stood at $8.28 billion and banks at 3.32 billion, the advisor said.


----------



## Neo

*In case FODP funding is delayed: IMF asked to arrange $4 billion credit line as insurance, says Tarin​* 
ISLAMABAD (June 12 2009): Prime Minister's Advisor on Finance, Shaukat Tarin on Thursday revealed that Pakistan has requested the International Monetary Fund (IMF) to arrange $4 billion credit line as insurance to absorb economic shocks in case of delay in payment of promised funds from Friends of Democratic Pakistan (FODP).

"The fear of fiscal deficit and current account deficit still exists as oil prices are going up and workers remittances may come down," he said at a press conference after formally launching the Economic Survey 2008-09 - two days after Business Recorder revealed it.

He said that Pakistan would receive the next tranche of the 7.6 billion dollars standby loan from the IMF after the budget 2009-10 scheduled to be presented in the National Assembly on June 13. He said that the FODP had committed $5.28 billion but assured that the development programme would continue in case of delay. "We are trying to secure another standby arrangement as insurance from the IMF to continue the development programme if the FODP delays payment", he added.

He ruled out that the IMF had delayed release of $840 million tranche due to failure of the government to meet the targets agreed with the IMF, saying that Pakistan had proposed a wait to assess the measures in the budget. The figures for July-March comply with the IMF targets, he added. Tarin said the government was going to announce massive programme for development in the next budget and with the increase in GDP, the debt-to-GDP ratio would start declining.

"The government will get enough money from the FODP that would be spent on the development programme, he said, adding that $1.2 billion from the FODP would be spent on development projects. Pakistan will also secure $500-550 million from other external resources to spend on the development projects during the upcoming financial year ie 2009-10, he said.

He said the international capital market was closed to generating money due to recession and the government had no option but to seek loans from international financiers. He said that international capital market would be open next year for generating money.

Responding to a query whether Pakistan had violated the Fiscal Responsibility and Debt Limitation (FRDL) Act 2005, Hina Rabbani Khar, Minister of State for Economic Affairs said that borrowing by the present government was slightly more than allowed by the Act.

According to FRDL, the government is bound to reduce debts by 2.5 percent of GDP each year but the present government borrowed one percent in excess of what is allowed by the Act which is a clear violation.

The government under the Act also required reducing revenue deficit by June 30, 2008, which has not been implemented. The government has obtained foreign debts of $5.5 to 6 billion in just nine months of the current fiscal year, expected to touch $7 billion by year-end. Interestingly, none of the members of the parliament raised this issue in the House.

Tarin said the government would make sufficient allocation for Internally Displaced Persons (IDPs) in upcoming budget and spending on IDPs would be in shape of grants to be received from different countries and would not put pressure on inflation in Pakistan. He said that spending on defence had exceeded Rs 300 billion during the current financial year ie 2008-09.

"The subsidy to power sector had reached Rs 98 billion against the budget allocation of Rs 65 billion for the current fiscal year even though the government had not passed on full impact of power tariff determined by Nepra to consumers," he added. He said the government would focus on productive growth of manufacturing and agriculture sectors in the next budget. He said the IMF had no reservations about the tax system in Pakistan.


----------



## Neo

*Rs 2.9 trillion outlay shows Rs 1.4 trillion revenue target: budget deficit estimated at Rs 680 billion​* 
ISLAMABAD (June 12 2009): The government is planning to present a budget with total consolidated outlay of Rs 2.9 trillion including Rs 1405-1410 billion tax target for the Federal Board of Revenue. Defence spending would be up to Rs 343 billion and the budget deficit is likely to be Rs 680 billion, with the condition of approval of the Cabinet before the budget announcement, sources told Business Recorder on Thursday.

New Bankruptcy Law and Resolution Trust Corporation would be introduced for easing the industry which saw a big hit from host of local and international crises. The government is putting its energies to restore its growth in coming fiscal year. Two new Development Financial Institutions (DFIs) are being set up and the announcement is awaited in the budget.

One institution would focus on infrastructure sector and the other on the industry's revival with initial capital touching Rs 6 billion. Development spending is likely to be enhanced by Rs 150 billion outside Public Sector Development Programme (PSDP) and Rs 621-646 billion from PSDP.

Tax on cash withdrawal is likely to be relaxed in the budget. Introduction of carbon tax from Rs 6-12 per liter to replace petroleum development levy and to consolidate taxes on petroleum products will also be firmed up after the Cabinet approves the budgetary measures. With the help of provinces, banks, insurance, doctors, lawyers and cargo agents would be brought into sales tax net. Stationary, mineral water, juices and other items are being considered for duty revision.


----------



## Neo

*Remittances rise to $7.076 billion in 11 months​* 
KARACHI (June 12 2009): Remittances sent by overseas Pakistanis continued to show a rising trend and an amount of $7.07626 billion was received in the first eleven months (July-May) of the current fiscal year 2008-09, showing an increase of $1.17243 billion or 19.86 percent over the same period of the last fiscal year.

The amount of $7.07626 billion includes $0.46 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). In May 2009, an amount of $720.68 million was sent home by overseas Pakistanis, up 23.25 percent or $135.93 million, when compared with $584.75 million received in the same month last year.

This is the second highest amount of remittances received in a single month. Earlier, the overseas workers had sent the highest-ever amount of $739.43 million as remittances in March 2009.

The inflow of remittances in the July-May, 2009 period from USA, UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1,581.48 million, $1523.89 million, $1,407.23 million, $1,094.54 million, $537.11 million and $224.71 million respectively as compared to $1,618.46 million, $1,002.01 million, $1,127.65 million, $892.41 million, $420.79 million and $162.66 million respectively in the July-May, 2008 period. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first eleven months of the current fiscal year 2008-09 amounted to $706.84 million as against $677.49 million in the same period last year.

The monthly average remittances for the period July-May 2008-09 comes to $643.30 million as compared to $536.71 million during the same period of the last fiscal year, registering an increase of 19.86 percent.

During last month ie May 2009, remittances from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $157.10 million, $145.83 million, $143.16 million, $98.52 million, $69.13 million and $28.18 million respectively as compared to $94.49 million, $154.73 million, $125.94 million, $97.23 million, $41.76 million and $15.01 million in May 2008. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during May, 2009 amounted to $78.75 million, up from $55.43 million received in same month last year.


----------



## Neo

*Thar Coal Company disbanded ​*
ISLAMABAD (June 12 2009): The government on Thursday disbanded the Thar Coal Company with immediate effect. The decision was taken in a meeting of Thar Coal Energy Board (TCEB) chaired by Prime Minister, Syed Yousuf Raza Gilani, specially convened to resolve the issue of ownership of Thar Coal project at PM House.

The Prime Minister asked TCEB to take all decisions since it was formed by keeping all aspects of the Constitution in view of giving representation to both federal and provincial governments. He said Thar Coal deposits of over 170 billion tons, worth billions of dollars are the country's big strategic assets and stressed the need to explore them to meet growing energy needs.

The Prime Minister reposed confidence that TCEB would act as a one-window support to potential investors in matters relating to development and leasing or sub-leasing at Thar mining development of clean coal technologies.

Underlining the importance of exploiting all areas of energy resources, the Prime Minister emphasised that speedy development of coal as another source of energy was imperative for the progress and prosperity of the country. The meeting was informed that 46 percent of energy needs of the world were being met through coal while Pakistan's share was only 0.1 percent.

It was further informed that Government of Sindh was preparing water supply scheme for Thar Coalfields for delivery of 250 cusecs water, which would cost around Rs 4 billion. Chief Minister Sindh, Syed Qaim Ali Shah, who is also the Chairman of TCEB has been asked to hold an urgent meeting of the Board to resolve the pending issues so that development work on the project could be started at the earliest.

The meeting was informed that in the forthcoming TCEB meeting Wapda would be asked to start work on the transmission lines on urgent basis besides putting up a power plant of 1000MW in Thar as well as to rehabilitate the Model Coal Fired Power Plant in Lakhra.

The meeting will also consider proposal to start work on laying broad-gauge lines for transportation of machinery up to the coalfields by Railways. During the meeting it was decided to remove with immediate effect Managing Director TCEB, Aslam Sanjrani. In his place, Ijaz Ali Khan, currently working as Secretary Mines and Mineral Development, Government of Sindh has been given additional charge of the office.

Federal Ministers for Water and Power, Raja Pervaiz Ashraf; Labour and Manpower, Syed Khursheed Shah; Parliamentary Affairs, Dr Zaheer ud Din Babar Awan, Privatisation, Syed Naveed Qamar, Senator Raza Rabbani; Deputy Chairman Planning Commission, Sardar Asif Ahmed Ali; Sindh Minister for Revenue, Jam Saifullah Khan Dharejo; Sindh Minister for Irrigation, Syed Murad Ali Shah; Secretary Water and Power, Chief Secretary Sindh, Member TCEB and Sindh Secretary Mines and Minerals also attended the meeting.


----------



## Neo

*Lucky-KDLB row puts $1 billion cement exports at stake ​* 
KARACHI (June 12 2009): Cement exporters fear losing their $1 billion markets world over, as the labourers, demanding employment and cess from the former, have detained a foreign ship at Karachi Port. According to sources M/v Bulk Arrow, which had arrived at Berth Number 25 of West Wharf around 11am Tuesday night, was awaiting loading that was denied by the workers of Karachi Dock Labour Board (KDLB) till filing of this report.

The stand-off surfaced when concerned authorities in the ministry and KPT despite repeated notices failed to pay heed to a longstanding dispute between KDLB and Lucky Cement, operator of a dedicated cement export facility at Karachi Port, with the former demanding employment and Rs 42 per ton cess and the latter denying the same on the contention that no manual work was needed at the automatically operated facility.

After heated debates the KDLB had filed a suit against Lucky Cement in the court of law which, according to sources, had ruled that the cement exporter would hire labourers from KDLB as per need, which Lucky Cement contends would never arise at the facility, where four automatic silos were installed to directly pump loose cargo into the ships.

"We have an automatic loading operation system in place that enables us to efficiently load 12,000 tons cement daily - no manual work is needed here," Abid Ganatra Director Finance Lucky Cement told Business Recorder. He said his company had installed four automatic silos with 25,000 tons total storage capacity at the berth at Rs one billion to enhance its cargo handling capacity.

But due to such activities, Pakistan, the cement export volume of which would touch $one billion this year, would lose its markets to its emerging world competitors, like India, Ganatra said.

"If the detention continues, international ship owners would stop sending their vessels to Pakistan, where port charges stand at 5 dollars as compared to a dollar-plus in India," he said. He claimed that the labourers' act was sheer contempt of court, which had ruled in favour of his firm. Moreover, Ganatra said in pursuance of an amicable solution to the dispute his company had sent letters to D.G and secretary ports and shipping along with KPT chief, but to no avail.

"We have also asked Jackson Police for protection as the labourers threatened to damage our infrastructure when we try to start loading," he added. Abdullah Dawood, General Secretary of KDLB CBA, was not available for comments, however, a KDLB spokesman told Business Recorder that as per 1973 Constitution only registered dockworkers can be employed for all sorts of loading/discharging work at Karachi Port.

"Despite clear constitutional provision they (Lucky Cement) are hiring 40 to 50 private labourers, who are inexperienced, he said. The ship would take 18,000 tons loose bulk cement from Pakistan to the Middle East.


----------



## Neo

*Economic Survey 2008-09: Highlights​* 
TEXT (June 12 2009):

* 1. GROWTH AND INVESTMENT:* Real GDP grew by 2.0 percent in 2008-09 as against 4.1 percent last year and growth target of 4.5 percent. The modest growth of just 2.0 percent is shared between Commodity Producing Sector (CPS) (0.08 percentage points) and services sector (1.92 percentage points).

Within the CPS, agriculture contributed 1.0 percentage point or 50.1 percent to overall GOP growth (a significant increase from its contribution of only 5.0 percent last year) while negative performance of industry dragged growth lower by 0.92 percentage points or 46.1 percent to neutralise positive contribution of agriculture.

In the services sector major contributions to GOP growth came from transport, storage & communication (0.3 percentage points or 14.6 percent), wholesale & retail trade (0.7 percentage points or 27.1 percent) and social services (0.8 percentage points or 38.6 percent).

Agriculture sector has depicted a stellar growth of 4.7 percent as compared to 1.1 percent witnessed last year and target of 3.5 percent for the year. Major crops accounting for 33.4 percent of agricultural value added registered an impressive growth of 7.7 percent as against a negative growth of 6.4 percent last year and a target of 4.5 percent. The livestock sector grew by 3.7 percent in 2008- 09 as against 4.2 percent last year.

Output in the manufacturing sector contracted by 3.3 percent in 2008-09 as compared to expansion of 4.8 percent last year and target of 6.1 percent. Small and medium manufacturing sector maintained its healthy growth of last year at 7.5 percent. Large-scale manufacturing depicted contraction of 7.7 percent as against expansion of 4.0 percent in the last year and 5.5 percent target for the year. The massive contraction is because of acute energy outages, a weak security environment and political disruption in March 2009.

The services sector grew by 3.6 percent as against the target of 6.1 percent and by last year's actual growth of 6.6 percent. Value added in the wholesale and retail trade sector grew at 3.1 percent as compared to 5.3 percent last year and target for the year of 5.4 percent.

Finance and insurance sector registered negative growth of 1.2 percent in 2008-09. The performance of this sector shows that Pakistan's financial sector is integrated in the world economy and is feeling the heat of the crisis plaguing international financial markets. The Transport, Storage and Communication sub-sector depicted a sharp deceleration in growth to 2.9 percent in 2008-09 as compared to 5.7 percent of last year.

Pakistan's per capita real income has risen by 2.5 percent in 2008-09 as against 3.4 percent last year. Per capita income in dollar term rose from $1042 last year to $1046 in 2008-09, thereby showing marginal increase of 0.3 percent. Real private consumption rose by 5.2 percent as against negative growth of 1.3 percent attained last year.

However, gross fixed capital formation could not maintain its strong growth momentum and real fixed investment growth contracted by 6.9 percent as against the expansion of 3.8 percent in the last fiscal year. Total investment has declined from 22.5 percent of GDP in 2006-07 to 19.7 percent of GDP in 2008- 09. Fixed investment has decreased to 18,1 percent of GDP from 20.4 percent last year.

Private sector investment was decelerating persistently since 2004-05 and its ratio to GDP has declined from 15.7 percent in 2004-05 to 13.2 percent in 2008-09. Public sector investment to GDP ratio which has been depicting a consistent increase from 4.0 percent in 2002-03 to 5.6 percent in 2006-07, declined to 4.9 percent in 2008-09.

The national savings rate has declined to 14.4 percent of GOP in 2008-09 as against 13.5 percent of GDP last year. Domestic savings has also declined substantially from 16.3 percent of GDP in 2005-06 to 11.2 percent of GDP in 2008-09. The overall foreign investment during the first ten months (July-April) of the current fiscal year has declined by 42.7 percent and stood at $2.2 billion as against $3.9 billion in the comparable period of last year.

Foreign direct investment (private) showed some resilience and stood at $3205.4 million during the first ten months (July-April) of the current fiscal year as against $3719.1 million in the same period last year thereby showing a decline of 13.8 percent.

Private portfolio investment on the other hand showed a net outflow of $451.5 million as against a net inflow of $98.9 million during the comparable period of last year. US kept its distinction of being the largest investor in Pakistan with 23.2 percent stake in the FDI. Other big investors originated from Mauritius (10.0 percent), Singapore (7.7 percent), UK (6.9 percent), Switzerland (6.6 percent), UAE (5.3 percent) and Hong Kong (3.9 percent).

The communication sector (including Telecom) spearheaded the FDI inflows by accounting for 27.3 percent stake during July-April 2008-09 followed by financial business (22.4 percent), energy including oil & gas and power (22.7 percent), and trade (4.9 percent). The current wave of uncertainty in the global demand and economic activity in the country has a major backlash on FDI inflows.

*2. AGRICULTURE:* The agriculture growth this year is estimated at 4.7 percent as compared with 1.1 percent during 2007-08. Cotton production at 11,819,000 bates in 2008-09 has increased by 1.4 percent in comparison to 11655,000 bales of last year. Wheat production is estimated at 23.4 million tons in 2008-09 as against 20.9 million tons last year, showing an increase of 11.9 percent.

Rice production has increased from 5.6 million tons in 2007-08 to 6.9 million tons in 2008-09, showing a substantial increase of 24.9 percent. Sugarcane production has decreased by 21.7 percent in 2008-09 from 63.9 million tons in last year to 50.0 million tons in 2008-09.

Gram production at 760 thousand tons in 2008-09 has increased by 60.0 percent in comparison to 475 thousand of last year. Maize production has increased from 3605 thousand tons in 2007-08 to 4036 thousand tons in 2008-09, showing a increase of 11.9 percent.

As regards minor crops, the production of chillies, masoor and potatoes increased by 60.7 percent, 44.Spercent and 0.2 percent respectively .The chillies crop is mainly concentrated in Sindh where timely rain proved very beneficial. The production of mung, mash and onion decreased by 11.4percent, 20.8 percent and 4.6percent respectively.

The decrease in these crops is mainly due to reduction of area under such crops as the area of mung, mash and onion decreased by 6percent, 3.lpercent and 13.lpercent respectively. Agriculture credit disbursement of Rs 151.9 billion during July-March 2008-09 is higher by 9.6 percent, as compared to Rs 138.6 billion over last year.

The domestic production of fertilisers during the first nine months (July - March 2008-09) of the current fiscal year was up by 3.6 percent as compared with corresponding period last year. On the other hand, the import of fertiliser decreased by 51 percent, the off-take of fertiliser also decreased by 11.9 percent during the same period last year.

*3. MANUFACTURING:* Overall manufacturing posted a negative growth of 3.3 percent during the current fiscal year against the target of 6.1 percent and 4.8 percent of last year. Large-scale manufacturing witnessed a across the board decline of 7.7 percent during ongoing fiscal year against the growth rate of 5.2 percent last year.

Severe energy shortages, deterioration in domestic law and order situation, sharp depreciation m rupee vis-à-vis US dollar and most importantly, weak external demand on the back of global recession coupled with slowdown in domestic demand are responsible factors for sluggish performance of manufacturing sector.

Major items responsible for this negative trend in large scale manufacturing during the current financial year were vegetable ghee (8.2percent),cooking oil (3.Spercent), beverages(3.7percent), sugar (26.3percent),tea blended (0.Sopercent), Cotton yarn (0.3percent) & cotton cloth (0.3percent), petroleum products (9.2 percent), jeeps & cars (48.Opercent), deep freezer (17.7percent), refrigerator (12.2percent), TV sets (38.8percent), Bicycles (30.4percent), Buses (51.3percent), pig iron (12.4percent), upper leather (7.6percent), nitrogenous fertiliser (0.8percent). Production of a few items depicted increase in their production such as cigarettes (11.4percent), cotton (ginned) (1.4percent), liquids/syrups (1.7percent), phosphatic fertiliser (33.3percent), cement (4.7percent) and coke (51.7percent).

The mining and quarrying sector registered a growth of 1.3 percent during the current fiscal year against the target of 4.5 percent and 4.4 percent last year. Government of Pakistan privatised Hazara Phosphate Fertilisers Limited (HPFL) at Rs 1340.02 billion during current fiscal year.

*4. FISCAL DEVELOPMENTS:* The overall fiscal balance has recovered from a sizeable slippage of 2007-08 amidst substantial decline in revenues and elimination of some subsidies like on petroleum products. The tax to GDP ratio fluctuated in a narrow band of 10 to 11 percent for almost one decade. In the current fiscal year the potential risk exists of tax-to-GDP ratio below 10 percent of GDP for the first time in the last two decades.

In 2008-09 total revenue as percentage of GDP slightly recovered, due to a marginal improvement in non-tax revenues as percent of GDP. Total revenue is expected to reach at Rs 1910 billion, as compared to Rs 1499.5 billion during the 2007-08.

The gradual decline in excise duty is attributed to removal of its incidence on selected items. With excise comprising of 9 percent of total FBR revenues, Pakistan's tax revenue-to-GDP stood at around 9 percent of GDP during 2008-09. The indirect tax-to-GDP ratio stood at around 5 percent, and direct tax-to-GDP ratio at around 4 percent during 2008-09.

The FBR revenue collection for the fiscal year 2008-09 was targeted at Rs 1250 billion at the time of presentation of the Federal Budget 2008-09. Tax collection during the first ten months (July-April) of the current fiscal year amounted to Rs 898.6 billion, which is 17.7 percent higher than the net collection of Rs 763.6 billion in the corresponding period of last year. The net and gross collections have increased by 17.7 and 17.1 percent respectively.

Federal excise duty collections registered a vibrant growth of 27.6 percent. On the other hand 47 percent growth in sales tax on domestic economic activity has helped it to grow overall by 22.2 percent. When viewed in the backdrop of 23 percent growth in national income, the growth of 16.9 percent in direct tax looks dismal.

The FBR tax collection to GDP ratio is likely to deteriorate around 9 percent of GDP as against the target of bringing it in to the vicinity of 10 percent of GDP. Apart from FBR revenue, the total tax revenue growth also lagged behind the growth in nominal GOP, as it exhibits a decline in tax GDP ratio from 10.3 percent in 2007-08 to around 10 percent in 2008-09.

The budgeted total expenditure for the fiscal year 2008-09 was Rs 2391 billion, which is 4.9 percent higher than the last year's revised estimate. Development expenditure (after adjusting for net lending) was targeted at Rs 396 billion in 2008-09 which is up by 7 percent than last year. On the basis of revenue and expenditure projections, the overall fiscal deficit is estimated at Rs 562 billion or 4.3 percent of GOP as against 7.4 percent last year.

On the other hand current expenditures were envisaged to remain more or less stagnant at Rs 1876 billion. The stake of federal government in the current expenditure was to the extent of Rs 1359 billion and the remaining Rs 517 billion were earmarked for provincial governments.

Interest payments surpassed their budgeted level by a significant margin. A sum of Rs 557 billion was budgeted for interest payments in 2008-09. The year is likely to end with interest payments of Rs 618 billion which are higher by Rs 61 billion over budgeted amount.

*5. MONEY AND CREDIT:* During 2007-08, the SBP continued with tight monetary policy stance, thrice raising the discount rate and increased the Cash Reserve requirement (CRR) and Statutory Liquidity Requirement (SLR). During July-May 9, 2008-09, money supply (M2) decline to 4.59 percent against 8.96 percent last year.

Net Domestic Assets (NDA) was limited to just Rs 442.1 billion as compared to Rs 655.4 billion in FY08. During FY09 the slow expansion in private sector credit has led to the slower growth in NDA of the banking system. This is shared both by NDA of SBP and the scheduled banks.

Net Foreign Assets (NFA) of the banking system recorded a decline of over Rs 227.1 billion during the first ten months of the current fiscal year to May 9th. Government borrowing from the central bank has been dampened since December 2008 in line with the target set under the macroeconomic stabilisation programme as part of the IMF Stand-By Arrangement.

Government's budgetary borrowing from the banking system decreased by Rs 339.9 billion during July-May FY09 against an increase of Rs 360.4 billion in the corresponding period of FY08. Credit to private sector grew by Rs 21.8 billion during July-May FY09 as compared to Rs 369.8 billion during the corresponding period last year. The weighted average lending rate has risen by 210 bps during the same period accompanied by 180 bps addition in the deposit rates.

During July-December, 208 Khushali Bank, disbursed loans amounting Rs 1,9 billion (December 2008) as compared to Rs 2.6 billion in the same period last year. The share of all other microfinance banks in loan disbursement increased to Rs 2.6 billion (December 2008) from Rs 2.3 billion in July-March FY08. Microfinance Institutions have also disbursed amounting to Rs 10.4 billion as compared to Rs 12.9 billion.

*6. CAPITAL MARKETS:* During the outgoing fiscal year 2008-09, the benchmark stock exchange KSE-100 index demonstrated acute volatility owing to fluctuating outlook on political, macroeconomic and global grounds. The index closed at 7,367.6 points on May 29, 2009, down by 4,921.4 points (or 40 percent) from the end June position of the last year.

The KSE management and Securities and Exchange Commission of Pakistan (SECP) together took a number of regulatory actions to mitigate the potential technical risks confronting the equity markets, the most prominent being the imposition of price floor during August 27, 2008 to December 12, 2008.

Aggregate Market Capitalisation declined abruptly by Rs 1,621 billion, from Rs 3,777 billion in June 2008 to Rs 2,156 billion in May 2009. With no fresh merger and acquisition activity in the year 2008-09, the international investors remained keen to increase their ownership share. Foreign portfolio investment stood at a negative US $418.4 million during first nine months of the fiscal year 2008-09.

Dismal performance owing to a confluence of factors was exhibited by different sectors of the economy and the dull indicators left a weighty impact on the stock market activity during 2008-09.

The government carried out three government securities auction in the outgoing fiscal year and managed to issue Rs 48.9 billion of PIBs with 3&5 years due maturities amounting to Rs 16.2 billion, resulting in a surplus issuance of Rs 32.7 billion.

The Government of Pakistan issued its first 3-Year Ijara Sukuk Bond in the month of September 2008. So far, three auctions, one in each quarter, have been conducted by the SBP. Collectively, Rs 27.85 billion was mopped up against the total target of Rs 30 billion.

The National Savings Schemes (NSS) attracted Rs 173.3 billion in July-March 2008-09. Huge accruals were noticed in the case of Special Savings Certificates, Bahbood Savings Certificates, and Pensioners' Benefit Accounts. The deposit rates on all schemes offered under the NSS umbrella were revised in each quarter o the outgoing fiscal year. Three new floatation (corporate TFCs) were listed on KSE during the period under review.

Recent regulations by SECP that emphasise on increasing the minimum capital base and strict requirements for the classification of non-performing loans are anticipated to augment the strength of the Non Banking Finance Companies (NBFCs) sector. Significant progress has been made on capital market reforms, including adoption of international standards and market practices and the streamlining of regulatory infrastructure to enhance surveillance and enforcement.

*7. INFLATION:* The inflation rate as measured by the changes in Consumer Price Index (CPI) stood at 22.3 percent during the first ten months (July-April) of the current fiscal year, 2008-09, as against 10.3 percent in the comparable period of last year.

The food inflation is estimated at 26.6 percent and non-food 19.0 percent, against 15.0 percent and 6.8 percent in the corresponding period of last year. The Wholesale Price Index (WPI) during July-April, 2008-09 have increased by 21.4 percent, as against 13.7 percent of last year.

The Sensitive Price Indicator (SPI) has recorded an increase of 26.3 percent during July-April, 2008-09, as against 14.1 percent of last year. The increase in inflation rate during the current year 2008-09 is attributable to the increase in food price inflation which has been due to increase in prices of wheat, wheat flour, sugar, milk, poultry, meat, fresh vegetables and fruits.

*8. TRADE & PAYMENTS:* Overall exports recorded a negative growth of 3.0 percent during the first ten months (July-April) o the current fiscal year against positive growth of 10.2 percent in the same period of last year. ln absolute terms, exports have decreased from $15,222.9 million to $14762.2 million in the period.

Imports during the first ten months (July-April) of the current fiscal year (2008-09) decline by 9.8 percent compared with the same period of last year, reaching to $28.92 billion. Import compression measures lowering domestic demand coupled with massive fall in international oil prices have started paying dividends and imports witnessed slowdown. Beside that depreciation of rupee had also played a significant role for lower imports during current fiscal year.

Imports of the petroleum group registered declining growth of 7.6 percent and reached to $8012.7 million. The decline in imports of the petroleum group has been due to massive fall in oil prices in the international market. The imports of telecom decline by 54.8 percent during July-April 2008-09. This is followed by imports of consumer durables group which exhibits negative growth of 16.4 percent~ Petroleum group, Raw Materials and food groups witnessed a negative growth of 7.6 percent, 5.2 percent and 3.1 percent respectively. Import of machinery remained the only group which showed a nominal growth of 0.5 percent during July-April 2008-09.

According to data release by SBP, Trade deficit decelerated by 12.3 percent during July-April 2008-09 Pakistan's current account deficit (CAD) moved back o US $8.5 billion during Jul-Apr Fiscal Year 2008 09 against US $11.2 billion in the comparable period of last year, showing a decline of 23.5 percent.

In the month of February 2009, the current account witnessed a surplus of $128 million which is first monthly surplus since July 2007. This improvement contributed by deceleration in import growth due to lower imports in terms of quantity in the back of import compression measures and depreciation in rupee along with massive decrease in imports prices. Increase in workers remittance and reduction in services account deficit leads to improvement of invisible account.

Services account deficit shrank by 41.3 percent during Jul-April Fiscal Year 2008-09 to reach $3. billion. Financial account contracts from $6,224 million to $3,476 million during July-April 2008-09 against corresponding period last year.

Pakistan has witnessed pressure on ER during July-October 2008-09 when rupee depreciated by 16.3 percent. With signing of Standby arrangements with the IMF, the rupee got back some of its lost value and with substantial import compression, improvement in overall external balance including revival of external inflows from abroad the exchange rate havoured around Rs 80.50 during April 2009.

Worker remittances amounted to $6355.6 million in July-April 2008-09 as against $5319.1 in corresponding period last year, thereby showing an increase of 19.5 percent. Pakistan's total liquid foreign exchange reserves amounted to $11.6 billion by the end of May 2009.Of which, reserves held by State Bank of Pakistan stood at $8.28 billion and by banks stood at 3.32 billion.

*9. EXTERNAL AND DOMESTIC DEBT:* In relative terms, EDI as percentage of GDP increased from 28.1 percent at end-June 2008 to 30.2 percent by end-March 2009- an increase of 2.1 percentage points. This is the highest ever rise in a single year for almost one decade. A significantly depressed economic growth and massive depreciation of rupee against dollar partially explains this increase in EDL as a percentage of GDP.

Given the severity of the crisis in international debt capital markets, and hesitance with respect to investor confidence, Pakistan has not issued any new instruments in 2008-09.

Government of Pakistan successfully repaid the maturing $500 million Eurobond as well as $17 million on account of interest payments. This successful payment laid to rest any fears of Pakistan debt repayment capacity, and shored up investor confidence about Pakistan's ability to successfully manage its outstanding external debt obligations.

Total public debt increased by Rs 1367 billion in the first nine months of 2008-09, reaching a total outstanding amount of Rs 7268 billion; an increase of 23.2 percent in nominal terms. The increase in total public debt is shared between rupee and foreign currency debt in the ratio of 40:60.

The rise in foreign currency debt is mainly because of massive depreciation of the Pak rupee in the first quarter of the fiscal year. As a percentage of GDP, total public debt has decreased to 55.5 percent, a significant reduction from the previous year but still less than the required reduction of 2.5 percent as prescribed by the Fiscal Responsibility and Debt Limitation Act 2005.

On the internal front, borrowing from the State Bank of Pakistan continues to fuel increases not only in domestic inflation but also adding to the short-run domestic debt. Net zero borrowing from the SBP at the end of every quarter put restraint on the government's borrowing appetite from the SBP and the government successfully met this target in the last two quarters (October-March). The total domestic debt is positioned at Rs 3758 billion at end-March 2009 which implies net addition of Rs 484 billion in the nine months of the current fiscal year.

*10. EDUCATION:* Education is extensively regarded as a route to economic prosperity being the key to scientific and technological advancement. Hence, it plays a pivotal role in human capital formation and a necessary tool for sustainable socio-economic growth. Education also combats unemployment, confirms sound foundation of social equity, awareness, tolerance, self esteem and spread of political socialisation and cultural vitality.

The overall literacy rate (10 years & above) which was 55 percent in 2006-07 has increased to 56 percent in 2007-08, indicating 1.8 percent increase over the same period last year.

Male literacy rate (10 years & above) increased from 67 percent in 2006-07 to 69 percent in 2007-08 while it increased from 42 to 44 percent for female during the same period. Literacy remains higher in urban areas (7lpercent) than in rural areas (49percent) during 2007-08.

Province wise literacy data of PSLM (2007-08) shows Punjab to be on the top (59 percent) followed by Sindh (56 percent), NWFP (49 percent) and Balochistan (46 percent). According to the PSLM Survey data 2007-08, the overall school attendance (age 10 years and above) is S8percent (7lpercent for male and 46percent for female) in 2007-08 as compared to S7percent (69percent for male and 44percent for female) in 2006-07.

According to the Ministry of Education, there are currently 227,243 institutions in the country. The overall enrolment is recorded at 34.49 million with teaching staff of 1.27 million.

*11. HEALTH AND NUTRITION:* At present, there are 948 hospitals, 4794 dispensaries, 5310 basic health units and 908 maternity and child health centres in Pakistan. With availability of 133.956 thousands doctors, 9.012 thousands dentists, 65.387 thousands nurses and 103.037 thousands hospital beds in the country by 2008-09, the population and health facilities ratio works out at 1212 persons per doctors, 18010 persons per dentist, 2400 persons per nurse and 1575 persons per hospital bed which are compared well with the other developing countries.

During 2008-09, 35 basic health units and 13 rural health centres have been constructed. While 40 rural health centres and 850 basic health units have been upgraded. Some 4500 doctors, 400 dentists, 3200 nurses and 5000 paramedics have completed their academic courses and 4300 new beds have been added in the hospitals.

Some 96 thousands Lady Health Workers (LHWS) have been trained and deployed mostly in the rural areas. Moreover, some 8 million children have been immunised and 24 million packets of ORS distributed.

Various health programmes with a special focus on major public health problems have been carried out. These include cancer treatment, AIDS prevention and Malaria Control Programme. The total outlay on health is budgeted at Rs 74.0 billion (Rs 33.0 billion development and Rs 41.10 billion current expenditure) which is equivalent to 0.5 percent of GNP.

*12. POPULATION, LABOUR FORCE AND EMPLOYMENT:* The population of Pakistan is 163.76 in 2008-09. At the existing trend, the total population will reach 167 million by the year 2010 and 194 million by 2020 (NIPS). The life expectancy in Pakistan is 64.9 years.

About 2.72 million labour force is estimated as un-employed in 2008 with unemployment rate of 5.20 percent. Agriculture remains the dominant source of employment in Pakistan. The share of agriculture in employment has increased from 43.61 percent in 2006-07 to 44.6 percent by the year 2007-08 followed by manufacturing (12.99 percent), trade (14.6 percent), services (13.7percent).

To generate employment the government has started Skill Development Councils in order to meet the diversified training needs of the industrial and commercial sectors. SME Bank has financed 7,814 Small and Medium Enterprises, disbursing loans amounting to Rs 7,936 million to 54,698 beneficiaries in the country.

*13. POVERTY:* Economic growth has slowed down considerably during the last three years. The industry and construction sectors have contracted due to the domestic slowdown and energy shortage and also due to global recession. Thus job absorbing capacity of the economy has shrunk.

Based on the Federal Bureau of Statistics' PSLM data, the Center for Poverty Reduction and Social Policy Development (CPRSPD), Planning and Development Division estimated a sharp decline in the headcount poverty ratio for 2007-08. However, these findings appear to contradict other assessments conducted subsequently, and which better reflect global and domestic price developments after June 2008.
The Report of a UN Inter Agency Assessment Mission fielded during June-July 2008 found that food security in Pakistan in 2007-08 had significantly worsened as a result of food price hike. The total number of households falling into this category was estimated at 7 million.

The survey further indicates that more than 40 percent of households reported no change in income in 2008 since the year before. Forty five percent of the population working as employees witnessed decrease in their real wages. The Report shows an increase in the share of severely food insecure population, from 23 percent in 2005-06 to 28 percent in 2008. The Planning Commission's constituted Panel of Economists in its Interim Report based on 2004-05 poverty head count number of 23.9 percent suggested an increase of around 6 points in poverty incidence for the year 2008-09. Similarly, the Task Force on Food Security based on the World Bank estimates of poverty head count ratio of 29.2 percent in 2004-05 estimated that poverty head count increased to 33.8 percent in 2007-08 and 36.1 percent in 2008-09 or about 62 million people in 2008- 09 were below the poverty line.

The average projected GDP growth in developing countries in 2009 is now only about a quarter of what was expected before the financial turmoil intensified into a full-blown crisis in the latter half of 2008 and a fifth of that achieved in the period of strong growth up to 2007.

*14. TRANSPORT AND COMMUNICATION:* Pakistan has a road network covering 258,350 kilometers including 176,589 KM of high type roads and 81,761 KM of low type roads. During the out-going fiscal year, the length of the high typed road network increased by 1.3 percent but the length of the low type road network declined by 2.7 percent because most of low type roads have been converted to high type roads. Road density at present is 0.32km/km2. Karachi Port Trust handled a total of 21.4 million tons of cargo during current fiscal year, depicting a growth rate of 44.3 percent.

Port Qasim Authority handled 18.01 million tons cargo during the current financial year 2008-09, depicting a shortfall of 9percent over Jul 07- Mar 08 owing to global economic crisis.

Pakistan National Shipping Corporation (PNSC) lifted 5762.2 million tons of liquid cargo and 865.0 million tons of dry cargo during the current fiscal year. PIA international passenger traffic, excluding Hajj, registered an increase of 3.5 percent from 3,069,717 passengers during 2008 over 2,964,830 passengers last year despite the seat (capacity) reduction of 2.3 percent. On domestic routes passenger traffic registered an increase of 3.6 percent from 2,239,815 passengers during 2008 over 2,160,589 passengers last year despite the seat (capacity) reduction of 7.4 percent.

Telecom sector of Pakistan exhibited positive but slow growth in terms of revenue, subscribers and tele-density. Total tele-density reached 60.6percent during the current year. Cellular Market added 3,422,599 subscribers with average of 0.3 million per month and total subscribers reached 91.4 million. Currently number of cities/towns/villages covered stands at 10,001 while 26,300 cell sites were installed by all cellular operators.

Total fixed line subscribers in Pakistan stood at a total of 3.7 million as of March, 2009, yielding total tele-density of 2.3percent. Today there are 384,187 fixed, mobile and WLL payphones available across the country. There are currently 267,180 broadband subscribers showing almost 59percent growth in 6 months time.

*15. ENERGY:* 

Crude Oil: Production of crude oil per day has decrease to 66,531 barrels during July-March 2008 09 from 70,165 barrels per day during the same period last year, showing a decrease of 5.2 percent.

On average, the transport sector consumes 51.6 percent of the petroleum products, followed by power sector (33.1 percent), industry (10.3 percent), household (1.7 percent), other government (2.1 percent), and agriculture (1.1 percent) during last 10 years ie 1998-99 to 2007-08.

Natural Gas: The average production of natural gas per day stood at 3,986.5 million cubic feet during July-March, 2008-09, as compared to 3,965.9 million cubic feet over the same period last year, showing an increase of 0.5 percent. On average, the power sector consumes 37.2 percent of gas, followed by industrial sector (20.4 percent), fertiliser (19.8 percent), household (16.8 percent), Transport (2.0), commercial sector (2.7 percent) and cement (1.0 percent) during.

Electricity: The total installed generation capacity has increased to 19754 MW during July-March 200809 from 19566 MW during the same period last year, showing a marginal increase (1.0 percent). Total installed capacity of WAPDA stood at 11,454 MW during July-March 2008-09 of which, hydel accounts for 57.2 percent or 6,555 MW, thermal accounts for 42.8 percent or 4899 MW. The number of villages electrified increased to 133,463 by March 2009 from 126,296 5by March 2009, showing an increase of 5.7 percent.

CNG: Presently, some 2,700 CNG stations are operating in the country. By March 200 about 2.0 million vehicles were converted to CNG as compared to 1.70 million vehicles during the same period last year, showing an increase of 17.6 percent. With these developments Pakistan has now become the largest CNG using country.

Environment: Government of Pakistan has declared 2009 as the National Year of Environment. In this regard the current year was kicked off with a Regional level workshop on Climate Change, which was inaugurated by the Prime Minister of Pakistan.

The PRSP II released in February 2009, has aligned itself with Millennium Development Goal 7, which is specific to environmental sustainability. Its targets include; integration of the principles of sustainable development into country policies and programmes and reversing the loss of environmental resources, such as including: biodiversity conservation, climate change mitigation and adaptation, phasing out ozone depletion substances; sustainable access to safe drinking water, sanitation and hygiene; controlling outdoor and indoor air pollution, reduction of vulnerability to natural disasters, and significant improvement in the lives of squatter settlement dwellers eg by providing access to secure tenure.

Pakistan has become the largest user of Compressed Natural Gas (CNG) in the world, as per the statistics issued by the International Association of Natural Gas Vehicles (IANGV). Presently, more than 2 million vehicles are using CNG as fuel and 2,760 CNG stations are operational in different parts of the country (as on April 2009).

The Ministry in collaboration with UNICEF, Water & Sanitation Programme (World Bank), Water Aid, Rural Support Programme Network (RSPN) etc, launched awareness and training programmes in the year 2008, the International Year of Sanitation (IYS 2008).

It is estimated that the country's forest area stood at 5.3 percent during 2007-08. The President of Pakistan launched a Mass Afforestation Programme on December 22, 2008. This programme will be spread over a period of five years and shall largely be sponsored by private entrepreneurs for planting trees on state and other suitable lands.

The Government in collaboration with various concerned organisations has recently initiated the Technical Advisory Panel (TAP) on Climate Change. The official launch of the TAP was held on February 15, 2008.


----------



## Neo

*Forex reserves decline to $11.514 billion​*
KARACHI: The country's foreign exchange reserves decreased to $11.514 billion on the week ending on June 6, 2009 as compared with $11.524 billion previous week, data released by the State Bank of Pakistan showed on Thursday. The total reserves witnessed a decrease of $10 million during the last week. The reserves held by the central bank witnessed an increase of $16 million as the reserves reached to $8.200 billion, as compared to $8.814 billion last week. However, the reserves held by banks (other than SBP) showed a decline of $25 million to depict $3.314 billion as compared with last week's number of $3.339 billion last week.


----------



## muse

Free Money and Inflation for everyone- up, up and away - you don't have to produce value, it's free money time and back in the pockets of international institutions
Does Benazir have any free money for me?



*Rs 2.2 trillion federal budget today*

* Budget deficit estimated at Rs 724bn, includes non-development expenditures of Rs 1.55 trillion, PSDP worth Rs 621bn, Rs 343bn for defence budget, debt servicing allocation of Rs 655bn 
* Upto 25&#37; raise in pensions expected, new taxes, duties worth Rs 100bn likely 

By Sajid Chaudhry

ISLAMABAD: The Pakistan People&#8217;s Party-led coalition government&#8217;s will present a Rs 2.196 trillion-budget for the fiscal year 2009-10 in the National Assembly today (Saturday).

The consolidated budget for the federal and the four provincial governments has been estimated at Rs 2.9 trillion for the next fiscal year.

A special meeting of the federal cabinet under the prime minister is likely to approve the proposed budget in the morning, followed by its tabling in parliament in the afternoon.

Proposals: The proposed budget has an allocation of Rs 724 billion for debt servicing, funds for which will be financed through local and external borrowing. 

Non-development expenditures are estimated at Rs 1.55 trillion, Rs 621 billion have been apportioned for the Public Sector Development Programme (PSDP) 2009-10 and the allocation for the defence budget is likely to be around Rs 343 billion.

The budget proposal estimates foreign and domestic debt servicing at Rs 655 billion, Rs 70 billion have been earmarked for the Benazir Income Support Programme (BISP), allocation for the rehabilitation of the internally displaced persons (IDPs) is likely to Rs 50 billion, while the Earthquake Reconstruction and Rehabilitation Authority (ERRA) is likely to get Rs 25 billion for the year 2009-10. 

According to the government&#8217;s estimates, expenditures in the coming year will amount to Rs 745 billion.

Another proposal to be considered in today&#8217;s special cabinet meeting is a proposed increase in the salaries of government officials by 20 percent, or an alternate remedy of merging two ad-hoc relief allowances in the pay scales and than allowing the 20 percent increase. 

Pension and taxes: According to another proposal included in the planned budget, government employees who retired before June 30, 1997, will get a 25 percent increase in their pension and those who retired on, or after July 1, 1997, will allowed an increase of 20 percent.

The tax collection target is likely to be set at between Rs 1.380 and Rs 1.390 trillion, with new taxes and duties amounting to around Rs 100 billion. 

The existing petroleum development levy may be replaced by a Carbon tax of around Rs 6 to 12 per litre on petroleum, oil and lubricant products, likely to be imposed from July 1, 2009.

The government is also expected to announce the mergers and closures of numerous federal departments to bring the size of the federal government to an efficient level. Proposals have been finalised in this regard.

Two new taxes are to be imposed under the provincial legislation - 16 percent general sales tax is to be levied on 14 services sectors and 10 percent capital gains tax on real estate sector is also expected.

In the upcoming budget 2009-10, the federal government is likely to impose five to 10 percent duties on air conditioners, deep freezers and refrigerators, and around five percent on the import of and local sale of tea and coffee.

Two percent additional duty on cosmetics and perfumes, a 10 percent increase in the duty on cigarettes and a five percent additional duty on the import of cigarettes is also expected.

The government is also likely to tax the CNG business with the removal of the 16 percent subsidy on the import of CNG kits and equipment and may also likely withdraw the zero rating tax facility for the pesticides, stationery and dairy products sectors. 

Withholding tax on cash withdrawal from bank accounts and a five percent duty on the registration of new cars are also likely to go. 

The 16 percent GST on computer software and exclusion of some sectors from Presumptive Tax Regime (PTR) are also likely. Income tax exemptions for some sectors are to be withdrawn and income tax rates for higher income groups are expected to be increased to generate additional revenues.


----------



## white_pawn

*US House passes bill to triple aid ​*WASHINGTON (June 13 2009): The US House of Representatives on Thursday approved tripling US aid to Pakistan to about $1.5 billion a year for each of the next five years in a key part of a strategy to combat extremism with economic and social development.

-- Pakistan not happy about some of conditions on aid

-- Congressman says no more 'blank cheques'

-- Lawmaker urges fast response to Pakistan situation

The bill also includes military aid with conditions that require the Obama administration to certify that Pakistan remains committed to combating terrorist groups - a provision that was criticised by the key US ally in South Asia. The $1.5 billion in annual funding includes money for Pakistani schools, the judicial system, parliament and law enforcement agencies.

The action came the same day that UN Secretary-General Ban Ki-moon appealed to major donors for more funding for Pakistan, saying it was at risk of a "spiralling secondary crisis" without more international aid. The bill, which includes $400 million in annual military aid for 2010-2013, also passed as Pakistan's military opened a second front against domestic Taliban militants who US officials fear could destabilise Pakistan.

Fighting in the Bannu district flared up on Thursday as the military was completing the last stages of an operation to clear Islamist fighters from the Swat valley, near Islamabad. "The current conditions in Pakistan underline the importance of moving urgently on this legislation," said Democratic Representative Chris Van Hollen. "This is the time to send a signal and initiate a policy of economic development in these difficult regions," he added.

Van Hollen's amendment to the legislation, which must still be harmonised with a similar bill in the US Senate, sets up so-called Reconstruction Opportunity Zones in border areas of Pakistan and Afghanistan, from which textiles and other items can be exported duty-free to the United States.

"Support in Congress for aid for Pakistan will strengthen the resolve of the Pakistani people and government in confronting violent extremists and terrorists," said Pakistan's ambassador in Washington, Husain Haqqani. He also said his government was unhappy about the conditions tied to some of the aid.

"Some conditional language that has been included in the aid bill is not conducive to promoting the objectives of counterterrorism co-operation," the ambassador said, adding that he hoped the Senate would remove those terms when they complete passage of the aid package. But Howard Berman, chairman of the House of Representatives Foreign Affairs Committee, said Congress was "simply asking Pakistan to follow through with the commitments it has already made."

"In the process, we lay down an important marker that Congress will no longer provide a 'blank check,'" he said in a statement. On Wednesday, Richard Holbrooke, the US envoy to Pakistan and Afghanistan told a news briefing he had noticed a dramatic improvement in Pakistan's attitude toward fighting Islamist extremists during his visit there last week.


----------



## white_pawn

*Rs70 billion package for five export sectors​*By A Reporter 
Saturday, 13 Jun, 2009 

ISLAMABAD: The government has decided to allocate Rs70 billion package for the revival of five export sectors in the budget in the shape of reduced gas prices and incentives for value addition.

Gas prices for industries for the first six months of next fiscal year have already been reduced by 12 per cent, said Dr Asim Hussain, adviser to the prime minister for petroleum and natural resources. 

He said that the total impact of this price reduction is estimated at Rs30 billion and it would help the industrial growth in next fiscal year.

He said that low gas prices would contribute significantly in reducing the cost of production for the manufacturing sector. 

Meanwhile, sources in the finance ministry told Dawn that the next budget would carry a relief package for the revival of export industry and value addition amounting to Rs40 billion.

Finance ministry sources said that the new package would be applicable to the textile, surgical, sports, leather and the gems and jewellery sector.

The government has already declared the fiscal year 2010 as the year of the industry after the industrial sector witnessed a 3.3 per cent decline during the current fiscal year and special attention will be focused on the revival of small and medium and the large industries.

The government has decided to provide relief to these sectors as they are not only the major foreign exchange earners but also the key employers in the country. 

Industries are not only the main source of employment providers but are also engine of the growth, said an official of the commerce ministry adding that the country was under pressure from the WTO to withdraw the research and development (R&D) support to the textile sector.

The government believes that the package would enable the five sectors to become competitive in the international market. However, the officials said that the government was also taking measures to ensure smooth energy supply to the industries.

DAWN.COM | Business | Rs70 billion package for five export sectors


----------



## Neo

*Spending on health, education falls sharply​*Saturday, June 13, 2009

ISLAMABAD: The governments spending on public health and education as a percentage of GDP during fiscal year 2008-09 reduced considerably due to financial constraints. This makes health and education indicators unsatisfactory compared to other Asian countries.

Health expenditure during 2008-09 reduced as a percentage of GDP to 0.55 per cent and education to 2.1 per cent as against the previous year when it stood at 0.57 per cent and 2.47 per cent respectively, says Economic Survey 2008-09 released here the other day.

It says that spending on education in terms of GDP stood at 2.5 per cent in 2006-07 and 2.47 per cent in 2006-07. Interestingly, Public Sector Development Programme (PSDP) allocations for education during the year under review were reduced by 33 per cent to Rs4.16 billion against the original allocation of Rs6.27 billion.

With the meager allocation, one cannot expect the countrys health and education sectors to perform well. That was the reason the sector confronts considerable strains, as there is only one doctor for 1212 persons, one dentist for 18010 persons and availability of one hospital bed for 1575 persons, states the Economic Survey 2008-09.

This poor situation could be attributed to unequal distribution of health facilities along with persevering malnutrition, poverty and inadequate allocation for the health sector.

According to the survey, in absolute terms, public sectors fiscal allocation for health was increased from Rs60 billion in 2007-08 to Rs74 billion in 2008-09, while as per cent of the GDP it declined. Of the total expenditures during the year under review, Rs33 billion was spent on development and Rs41.1 billion on current expenditure.

During FY08-09, there were only 133956 doctors, 9012 dentists, 65387 nurses and 10002 LHVs in Pakistan.

Pakistan is still lagging behind compared to other Asian countries such as China, Thailand, Indonesia, India, Sri Lanka and Bangladesh in terms of human welfare indicators. Among these countries, Pakistan depicts a grim picture regarding health facilities.

Mortality rate under five years per thousand in Pakistan is the highest ie 90, compared to Indias 72, Bangladesh 61, Nepal 55, Sri Lanka 21, China 22, Thailand 7, Philippines 28, Malaysia 11 and Indonesia 31.

Infant mortality rate was the highest in Pakistan at 73 per 1,000 during 2007, as against 70 in 2005, which indicates that Islamabad performed poorly once again in this aspect. In India infant mortality stood at 54, in Sri Lanka at 17, Bangladesh 47, Nepal 43, China 19, Thailand 6, Philippines 23, Malaysia 10 and Indonesia 25.

Although the ratio between available health facilities and the population has recorded a slight improvement over last year and the number of doctors has increased, it is yet insufficient to provide health coverage to the growing population.


----------



## Neo

* Govt needs another $4bn​*Saturday, June 13, 2009

LAHORE: Senior Punjab Minister Raja Riaz has said the government needs another $4 billion for reviving economy as it has so far received $11 billion.

Speaking at the Lahore Chamber of Commerce and Industry on Friday, the minister said the government was taking all necessary steps to overcome energy crisis as it was well aware of the sufferings of the masses and the difficulties being faced by the industry. He said a crash energy conservation plan had already been rolled out to bridge the demand-supply gap.

LCCI President Mian Muzaffar Ali, Senior Vice President Tahir Javaid Malik, Vice President Irfan Iqbal Sheik, former President Mian Misbahur Rehman and former Vice President Aftab Ahmad Vohra also spoke on the occasion.

He said the government was quite conscious of the problems being faced by the business community in the wake of energy shortage, law and order situation and high mark-up and was taking measures to ensure relief to the industry, which was the backbone of economy.

In his speech, LCCI President Mian Muzaffar Ali urged the minister to make all business policies in consultation with stakeholders as in the past that practice was hardly seen anywhere. He said a number good policies in the past could not give desired results for want of due attention to their implementation.

On energy crisis, he urged the minister to tap alternative energy resources because it would help curtail the import bill. Owing to the shortage of electricity, he said, not only the industry was heavily suffering but it was feared that unemployment could further go up.

He said the federal government should immediately start construction of big water reservoirs including Kalabagh dam. He said infrastructure played an important role in industrial growth and there is a need the government expedites up-gradation of infrastructure which will not only encourage local investors but will also help attract foreign investment.

He called for widening the scope of businessmen-police liaison committee by including all industrial areas in it as an improved law and order situation was a prerequisite to investment.


----------



## Neo

* Proposed GST on software to hit IT growth​*Saturday, June 13, 2009

LAHORE: Chairman Federal Task Force on Information & Communication Technologies (ICT), Salim Ghauri, has said the proposed 16 per cent general sales tax (GST) on computer software will play havoc with the growth of information technology (IT) sector.

Reacting to the proposal on Friday, he said that any such move would take Pakistans IT industry back to square one. Reports have suggested that increased usage and sales of certified computer software worth millions across the country have encouraged tax authorities to tap the revenue potential of the business. Earlier, the government had imposed GST on computer hardware.

Ghauri noted that the IT industry was already in limbo and it could not be burdened further. The policies of the Pakistan Software Export Board (PSEB) have helped the IT industry in the recent past but the global recession has affected it. Fate of many IT firms is hanging because of sudden drop in sales of their software globally, he added.

He pointed out that the volume of internally used software was meagre than exports. Furthermore, the slow pace of automation of public sector departments was a hurdle in the fast growth of IT in Pakistan. He said the Federal Task Force on ICT was already assigned the task of suggesting ways and means to enhance IT exports and the task force was finalising its proposals.


----------



## Neo

*Engineering goods exporters get Dutch input​*Saturday, June 13, 2009

LAHORE: Engineering sector experts discussed networking and experiences of companies trained under the CBI, a Dutch government-supported export coaching programme, here on Friday.

In a meeting of Pakistani engineering goods exporters, CBI alumni guided new entrants in the export field while its experts provided specialised input for effective export-related preparation by firms producing industrial machinery, auto parts and plastic goods.

The meeting was told that since 2005, Pakistans government has taken keen interest in promoting exposure of the engineering sector in Europe, by mandating the Engineering Development Board to participate in engineering-related trade fairs. That resulted in exposure of a few hundred SME companies to the European and South Korean markets and businessmen started recognising exports as a means of stabilising their order books, which had hitherto been dependent only on a handful local original equipment manufacturers (OEMs) and prone to the ups and downs of the local market. That period saw an export-led meteoric growth of companies.

In the meeting, some representatives of exporting firms criticised lack of interest on the part of Trade Development Authority, which seemed to have lost direction and whose working had never been slower than at present. The exporters also felt that the State Banks Long Term Financing Facility for Export Oriented Projects also needed to be reviewed as commercial banks did not show any support for that mode of financing.


----------



## Neo

*Picture of a squeezed economy...​*
The Economic Survey for 2008-09 released in Islamabad by the adviser to the prime minister on finance, Mr Shaukat Tarin, fleshes out the economic contraction he had repeatedly outlined in the recent past. The year was spent by the nation under a PPP coalition; hence the responsibility for what has transpired lies at the doorstep of the incumbent government. Yet, much of the trouble that still stymies the national economy is a carryover from the past that belonged to the PMLQ-Musharraf incumbency. The expectations of the PPP government have been belied: the projected GDP growth rate was set at 5.5 percent, then revised down to 3.5 percent, and finally fixed at 2.5 percent with the help of the IMF. That target too has been missed.

Much of what has happened was expected and it would be wrong to wring ones hands and fling accusations at the PPP government to increase the pressure being built for a mid-term change of government. But the truth is that a proportion of the negative performance is owed to the fact that a new government was trying to handle the legacy of the past and couldnt come out shining. Another mid-stream change will not be helpful. In fact we need to set a path to continuity and certainty in policy. Therefore the need is to look at the economy realistically and think hard about what new initiatives can be taken in hand for the next year. The country is still not normalised. The insurgency that we face has its tentacles all across the national territory and our resolve to finally stand up to it will have further consequences for the economy before things are normal again.

Some of the negative readings in the Survey belong to the economic perennials of the state: revenue collection estimate was blown up irrationally, then revised and finally not achieved. We dont collect at the level which India manages and have failed to improve collection even after years of high growth. After the contraction we allowed through a tight monetary policy and the downturn in the sectors linked to exports, revenues are expected to sink even more. Agriculture, which was deliberately targeted for quick growth, has over-produced, creating other familiar problems associated with glut, and may not yet be ready for taxation. Mr Tarin says the feudal lobby is so strongly set against agricultural tax that he fears martyrdom if he tries to squeeze it for revenues.

In the coming days, TV channels will register a generally plaintive mood of the various stakeholders. Tight fiscal policy has prevented hyper-inflation but it has depressed the manufacturing sector dependent on easy credit. All over the world interest rates have been lowered to jump-start the economy but in Pakistan high inflation is more feared than low production. The country has been attacked by dollar flight, pushing the value of the rupee down and thus undermining the inflation targets set by the government. The reason for the conversion of assets into dollars prior to flight was the advance of the Taliban into more and more territories formerly controlled by the state. People with assets feared losing everything in the event of a Taliban victory. Law and order in Karachi and the rise of ethnic violence compounded the feeling of insecurity created by suicide-bombings in all parts of the country. Now that the Taliban are in retreat in the face of a national consensus, and the Gulf economies are past their boom, the situation will change.

The past year was perhaps tougher than any year faced by the earlier regimes that avoided adverse economic trends by not challenging the rising tide of the Taliban and Al Qaeda. The energy crunch  and the circular debt that perpetuated it  was the legacy that the PPP government could not push back. But it achieved something else that lay in the realm of foreign policy but was to have a direct bearing on the countrys economic survival. It has been able to convince an economically troubled United States and Friends of Pakistan to lend money for the period of its trouble with the Taliban. The IMF stand-by arrangement has allowed Pakistan to pay for essential imports  long enough hopefully steady the ship of the economy.


----------



## Neo

*Economy shows negative growthin dollar terms​*
** Experts point at fudging figures​*
KARACHI: Pakistans economy has shown negative growth in dollar terms owing to the depreciation of rupee against the greenback and experts have said that the Gross Domestic Product (GDP) growth figures were fudged.

The GDP grew by 2 percent during the current fiscal year, claims the government. This growth rate was achieved by revising the previous years GDP growth rate from 5.8 percent to 4.1 percents. Economists say that this revision has been done very late. Normally the figures are revised within three to four months, says Dr Shahid Hassan, a renowned economist. This is clear evidence of fudging: either the growth rate of 5.2 percent was fudged or the revised rate is fudged, he added.

Regarding the performance of the economy, he says: This performance can be summed up in one worddisastrous. Shaukat Tareen, the advisor to the PM on finance, had admitted during May this year that the 2.37 percent GDP growth estimate for current fiscal year worked out by the Federal Bureau of Statistics and endorsed by National Accounts Committee was fudged as they had not included the largest ever negative growth witnessed by the large-scale manufacturing. The government released the Economic Survey of Pakistan on Thursday, which did not mention the contraction of economy in dollar terms. Nor did it say anything about the methodology according to which the growth rate of 2 percent was achieved.

The GDP growth declined to 2 percent in the current fiscal year from an average of 7 percent in the past six years. This would have come in even lower, at 0.4 percent, had officials not revised the GDP numbers for the previous fiscal year, says Sayem Ali, Country Economist at the Standard Chartered Bank. The economy shrank to $161 billion in FY09 from $165 billion in FY08, reflecting the 18.4 percent decline in the value of the Pakistani rupee (PKR) in the last 12 months.

However, with GDP growth at three percent and inflation at nine percent the economy is expected to grow in dollar terms for the next fiscal year as the rupee is expected to remain in the band of Rs 84 to Rs 86 a dollar, which is five percent depreciation only. The saving grace for the economy has been the positive performance of the agricultural sector which expanded by 4.7 percent on account of bumper wheat and rice crops. Higher support prices and water availability have helped to improve farm output and support more than 2.2 million workers involved in the rural economy.

Regarding the medium-term future of the economy, Ali says that persistently high inflation, tough measures taken under the IMF programme, and the rising security-related expenditure are weighing heavily on the economy. The economy is slowing to a near-halt, he says. Pakistan economy is slipping into recession, he says. The policy fous needs to shift from stabilisation to growth in order to avoid this situation. The government went to the IMF for a $7.6 billion loan in November 2008 as it faced a balance-of-payments crisis and quick depletion of foreign exchange reserves. The subsequent build-up of forex reserves and a stable rupee have helped to bring down inflation and allow the government to meet its external debt obligations. saad khan


----------



## Neo

*Budget 2009-10: Govt may approve Rs 70bn for revival of industrial sector​*
ISLAMABAD: The government is committed for turning the fortunes of the ailing industrial sector, which has undergone the longest ever decline in production during the outgoing fiscal year.

Federal government is likely to allocate Rs 70 billion for the revival of the industrial sector in the upcoming budget, official sources told Daily Times.

The government is set to announce setting up of Rs 40 billion Industrial Revival Fund for five export oriented industries in the budget 2009-10. Another Small and Medium (SMEs) Enterprises Development Fund would be created with an allocation of Rs 5 billion to assist this vital sector to achieve growth according to the potential. The government is also expected to announce creation of Venture Capital Fund worth Rs 2.5 billion to help the industrial sector.

According to the official sources, funding for these three proposed funds would be done from Public Sector Development Programme (PSDP) where the federal component is Rs 421 billion for the upcoming fiscal year 2009-10.

The export-oriented industries that would benefit from the proposed Industrial Revival Fund are textile, leather, sports goods, surgical instruments and gems and jewellery sector, official sources added.

The assistance to these industries would not be Research and Development, as the government would help reviving these sectors with advise from international experts.

Apart from the proposed incentive package for industrial sector, the government is expected to revise downwards the gas tariff for the industrial sector to reduce their cost of production and help them achieve competitiveness in international markets.

According to the official sources the gas distribution companies have been able to achieve savings to the tune of billions of rupees owing to the gas pricing mechanism which is linked to the crude oil prices in the international market. This amount would be utilised to provide relief to the export oriented industrial sector.

The share of industrial sector in Gross Domestic Product is lower than agriculture and services sector but its contributions in federal taxes is over 60 percent and the government is considering giving some tax incentives also to achieve the revival targets.

The year 2008-09 was a dismal period in a way since the industry was confronted with a host of problems. The recent global economic crisis has impacted trade badly. The impact of globalisation is apparent on both demand and supply sides of the trade equation. However, global supply capacities have exceeded more than demand in recent years.

Domestically, the increase in cost of utilities, (Power, Gas, Transport, and Petrol) has impacted the viability thus forcing the industry to make distress sales. Resultantly all competing countries are making distress sales to sustain their market share.

Textile Industry: Pakistan is the 4th largest cotton producer and 3rd largest cotton consumer. The textile and clothing industry has been the main driver of the export

based industry for the last 50 years in terms of foreign currency earnings and jobs creation. Textile industry nourished under official patronage, but lost its euphoria in the post-quota regime. Its share in exports had declined from 66 percent in 2004 to 53.7 percent in current financial year. The Textile Industry in Pakistan has not been able to reap all the benefits of post-quota regime as compared to other regional competitors.


----------



## Neo

*Rs 646 billion allocated for PSDP​* 
ISLAMABAD (June 14, 2009): The government on Saturday announced allocation of Rs 646 billion, with federal share of Rs 421 billion and provincial Rs 200 billion, to finance uplift projects in different sectors through its Public Sector Development Programme (PSDP) 2009-10. Another Rs 25 billion has been earmarked for Earthquake Rehabilitation and Reconstruction Authority (Erra) which is not expected to receive any external financing in 2009-10.

The allocation for water and power division (water sector) has been raised from Rs 31.2 billion of current financial year 2008-09 to Rs 47.255 billion for the next fiscal year (2009-10). The allocation for power sector is higher by Rs 11.3 billion than the allocation made in the preceding year's budget.

The government has allocated Rs 39 billion for Diamer Bhasha dam and Neelum-Jhelum hydropower project in Public Sector Development Programme 2009-10. A sum of Rs 8 billion has been earmarked for acquisition of land and resettlement plan of Bhasha dam victims. The total cost of the project has been estimated at Rs 60.05 billion. The amount of Rs 15 billion has been allocated for "Construction of Diamer Bhasha dam" for which total cost has been assessed at Rs 805.087 billion. The government has allocated Rs 16 billion for Neelum-Jhelum Hydropower project in AJK and total cost of the project is Rs 84.502 billion.

An allocation of Rs 22.967 billion has been made for 800 MW Guddu Steam Power Project and Rs 18.418 billion for 500 MW combined cycle plant at Chicho Ki Malian. The amount of Rs 13.676 billion has been allocated for 425 MW combined cycle Nandipur Power Plant and Rs 12 billion allocated for raising Mangla dam including resettlement of its victims and Rs 2 billion for Gomal Zam dam.

The government has also increased funds for Pakistan Atomic Energy Commission from current year's allocation of Rs 15 billion to Rs 19.5 billion for next financial year. The allocation for Pakistan Nuclear Regulatory Authority has been enhanced from Rs 257.5 million to Rs 447.4 million.

The allocation for Petroleum and Natural Resources is Rs 1.874 billion, Rs 45.97 billion for Communication Division (including NHA), Rs 828.8 million for Ports and Shipping Division, Rs 12.68 billion for Railway Division, and Rs 35 billion for special programmes.

The government has also raised allocation for Finance Division from Rs 6.5 billion to Rs 45.59 billion for next financial year. Planning and Development Division allocation is Rs 17.9 billion that is Rs 7.8 billion higher than the current year allocation of Rs 10.156 billion.

The allocation for Local Government and Rural Development Division will be Rs 444 million, Rs 195.5 million for Tourism Division, Rs 5.582 billion for Housing and Works Division, Rs 250 million for Foreign Affairs, Rs 679.1 million for Narcotics Control Division, Rs 1.128 billion for Information Technology and Telecommunications Division, Rs 7.58 billion for Defence Division (including Suparco), Rs 129.8 million for Establishment Division and Rs 3.26 billion for Science and Technological Research Division. The allocation for Education Division has been increased from current year's Rs 4.162 billion to Rs 8.55 billion for the next financial year.

The allocation of other ministries is as follows: Rs 22.5 billion for Higher Education Commission (HEC), Rs 23.15 billion for Health Division, Rs 5.25 billion for Population Welfare Division, Rs 343.7 million for Women Development Division, Rs 484.7 million for Social Welfare and Special Education Division, Rs 135.4 million for Labour and Manpower Division, Rs 25.52 billion for KA& NA Division, Rs 12.865 billion for States & Frontier Regions Division, Rs 2.253 billion for Environment Division, Rs 450 million for Culture Division, Rs 583.2 million for Sports Division, Rs 47.8 million for Youth Affairs Division, Rs 4.918 billion for Cabinet Division, Rs 916.1 million for Information and Broadcasting Division, Rs 1.677 billion for Defence Production Division, Rs 17.962 billion for Food and Agriculture Division, Rs 2.58 billion for Livestock and Dairy Development Division, Rs 7.822 billion for Industries and Production Division, Rs 2.793 billion for Special Initiative Division, Rs 509.7 million for Textile Industry Division, Rs 180 million for Statistic Division, Rs 7.03 billion for Interior Division, Rs 839.2 million for Commerce Division, Rs 2.051 billion for Law, Justice and Human Rights Division, Rs 2.448 billion for Revenue Division, Rs 300 million for Ministry of Postal Services, Rs 50 million for National Reconstruction Bureau and Rs 15.8 million for Economic Affairs Division.


----------



## Neo

*0.3 million industrial workers lost jobs in 2008 due to load shedding: report​* 
LAHORE (June 13 2009): Some 300,000 workers in the industrial sector lost jobs in 2007-08 due to the load shedding. According to the Second Annual Report 2009 of Institute of Public Policy, Lahore, the overall cost of load shedding to the industrial sector was about Rs l57 billion for this period.

Water shortages, similarly, cost the country as much as Rs 70 billion in 2007-08. Further, power load shedding cost the country Rs 210 billion, and over $1 billion of export earnings, the report added. Imminent increase in load shedding is likely to take the country to bloody bath, as it would leave the labour in the open without job, the economic experts expressed fear.

The industry is already in doldrums and becoming non-competitive to the last, leaving everybody including labour, industrialist and the common man in a situation in which they would not be able to last out. With a few more weeks to go before the 2009-10 Federal Budget is announced, there are a number of considerations before the policy makers.

Given the resource constraints, they have to prioritise areas for development in all sectors of the economy, tackle issues like energy shortages, and water shortages which constrains growth of various sectors of the economy and has far reaching implications for exports, employment and poverty.

Development of the power sector with better management of electricity distribution is the need of the hour and one hopes that policy makers, when they prepare the Federal Budget, would focus on this sector, as it has implications for all sectors of the economy.

Investing in enhancing power generation capacity in the country and upgrading existing power generation facilities, along with improvement in the distribution system would go a long way in bringing about an end to the energy problems faced by the various economic sectors and would pave way for improved performance in the future, the report said.

Energy shortages and upward adjustments in prices had raised the cost of production in local industry, and along with lower demand, particularly for consumer durable it contributed to the sluggish performance of the large-scale industry. It is to be seen what the Budget has in store for this sector.

To move forward, the small and medium sized enterprises in the informal sector would need focus of public policy. This sector employs large numbers and, if it is developed, it would not only contribute to increasing the rate of growth of GDP, but help reduce poverty and narrow income distribution in the country, the report added.


----------



## Neo

*Enough is enough​* 
ARTICLE (June 13 2009): Pakistan's industrial development understandably was based on a hurried assumption to get as many industrial units and as soon as possible. The objective was also to meet the requirements of employment for the increasing population. This ease of entry was to have many repercussions for not only the industrial sector but also the agriculture sector.

Look at the industrial ecology in terms of what has happened to the irrigation sector. Irrigation canals have been used as sinks by the industrial sector. In one such case distributary's 6-R of the lower Chenab irrigation system has been very adversely affected in as much as the pollution has taken a very heavy toll of life of the villagers that use its water for drinking.

Most of the villagers that have taken that water for the purpose stated have died and none of them had gone beyond the age of 35 years. Will of God is the most that one hears from the poor villagers. Yesterday's friends are no longer living in that vicinity.

At Lahore some school students carried out a study as to what goes into the canal that flows through Lahore and they found out that as many as 164 factories were throwing the factory polluted waste material into the canal. The pollution was so much that the people of the surrounding areas were subjected to subsoil water becoming polluted. In and around Lahore when there was a strong protest they started throwing this wastewater in to artificially created wells.

This surfaced another problem as this led to subsoil water becoming polluted. There is no cure for the water once it gets polluted. No wonder then there is pandemics of all kinds that crop up. People, poor people, lose their bread earners and they go back to poverty with one stroke of some one else's faults. In this case the rich and the powerful.

In Karachi when some children of poor people died while playing at a site where toxic materials were thrown and where chemical fuels were dumped the owner was called and he made a considerable amount of noise. His game of golf had been interrupted and he took exception to this act. He was not moved by the fact that three children had died because of the toxic material that his factory had dumped outside without any precautions.

So how good is industrialisation? Karachi, where 15 to 20% of Pakistan's industry is located, has been the worst offender. All its waste matter eventually ends in the Arabian Sea. The ocean can be a sink only for such period of time as it has a correction system that takes care of non-metal pollution. The end result of all this is that our marine fisheries have been adversely affected. The only nations that have successfully cleaned the ocean were led by Singapore and they have done wonders with their bay area.

Pakistan has not focused on any of the critical issues that lead to pollution. The real impediments have never been worked out. The real impediments were never technology but fashionable products that demand much more for very little gain. There has never been any real work and the seriously funny aspect is that there is no awareness in the public as to what is happening to their lives.

One way to allow consumers to make choice is to allow truthful labelling to come in and this could be a boon for the consumer. No one in Pakistan, and least of all the environment machinery that has been created, has any ability or authority to correct serious environmental issues. They have been holding dinner parties at Rawal Lake.

Is that what has been created for the rich and in the process there has been massive misallocation of resources. There are numerous examples that can be given. The environment ministry has no clue as to what they can do. Their record on biotechnology of the ministry on safety factors is also not enviable. There has to be an improvement of knowledge otherwise Pakistan will be left behind by millions of miles.

Pakistan, thanks to the polices of the 1960's, has had some pace in industrialisation and since then the sector has moved ahead and what was done and acceptable in that decade is no longer so. There is no question of seeking eco-efficiency for instance. The world seeks a different kind of ball game now that we have joined their comity.

The life cycle assessment, now required to be done, has never been taken note of and I dare say that the ministry itself is not aware of the situation that has been created. It is ironic that the ministry is itself responsible for the debacle of the low mountains of Islamabad and the fact that all that the CDA does is to keep on levelling natural contours and live under the apprehension that life is all about concrete, cement and hard technology.

The country's environment system has suffered and will continue to suffer unless and until the matters are so taken up as to indicate that the high levels of sustainability are achieved. Pakistan's industrial system is full of erroneous interventions. The essentials have been lost. Pakistan has to do its bit. Needless to say that the unholy alliance of the revenue patwari with all and sundry has to be viewed with a lot of suspicion and that suspicion grows if the powerful are involved.

The first step has to be to lessen the harmful effects. The second would be to improve on the outcome of the possible impacts. Chemical unsustainability has to go. So how does one get into a habit of doing well by doing well? What constitutes well? The lament of the past as to over grazing by the farmers is now well past and the new acquisitions have to be questioned. The take-make- waste model has to go.

Pakistan's bureaucracy has a blind spot and that has to be removed. With Musharraf reforms it seems highly unlikely that that sort of thing will happen. When idiots come to the fore and they have an idea of their own invincibility matters generally get out of hand. The last regime not only lived in an ivory tower but what they created around them was a world in which social toxins increased.

This kind of act cannot be allowed and we know that the market is a handmaiden of a few in this country. The mafia is very strong. It can purchase any and every one. They have their methods. The scale tragedy is huge. Take the case of Pakistan and the inability to handle such vast areas. The scale factor is mind-boggling.

We have never garnered this country's population towards a decent implementation of life awareness cycles. Let us, therefore, not play the blame game for the weaknesses are in us. Industry must respond as also the common people. We need healing and not mending and the difference is known to all of us. Resolve the issues because they are getting more complex with time. Take care of the earth just as you have taken care of yourself.


----------



## Hasnain2009

Neo said:


> *Economy shows negative growthin dollar terms​*
> ** Experts point at fudging figures​*
> KARACHI: Pakistans economy has shown negative growth in dollar terms owing to the depreciation of rupee against the greenback and experts have said that the Gross Domestic Product (GDP) growth figures were fudged.
> 
> The GDP grew by 2 percent during the current fiscal year, claims the government. This growth rate was achieved by revising the previous years GDP growth rate from 5.8 percent to 4.1 percents. Economists say that this revision has been done very late. Normally the figures are revised within three to four months, says Dr Shahid Hassan, a renowned economist. This is clear evidence of fudging: either the growth rate of 5.2 percent was fudged or the revised rate is fudged, he added.
> 
> Regarding the performance of the economy, he says: This performance can be summed up in one worddisastrous. Shaukat Tareen, the advisor to the PM on finance, had admitted during May this year that the 2.37 percent GDP growth estimate for current fiscal year worked out by the Federal Bureau of Statistics and endorsed by National Accounts Committee was fudged as they had not included the largest ever negative growth witnessed by the large-scale manufacturing. The government released the Economic Survey of Pakistan on Thursday, which did not mention the contraction of economy in dollar terms. Nor did it say anything about the methodology according to which the growth rate of 2 percent was achieved.
> 
> The GDP growth declined to 2 percent in the current fiscal year from an average of 7 percent in the past six years. This would have come in even lower, at 0.4 percent, had officials not revised the GDP numbers for the previous fiscal year, says Sayem Ali, Country Economist at the Standard Chartered Bank. *The economy shrank to $161 billion in FY09 from $165 billion in FY08, reflecting the 18.4 percent decline in the value of the Pakistani rupee (PKR) in the last 12 months.*
> However, with GDP growth at three percent and inflation at nine percent the economy is expected to grow in dollar terms for the next fiscal year as the rupee is expected to remain in the band of Rs 84 to Rs 86 a dollar, which is five percent depreciation only. The saving grace for the economy has been the positive performance of the agricultural sector which expanded by 4.7 percent on account of bumper wheat and rice crops. Higher support prices and water availability have helped to improve farm output and support more than 2.2 million workers involved in the rural economy.
> 
> Regarding the medium-term future of the economy, Ali says that persistently high inflation, tough measures taken under the IMF programme, and the rising security-related expenditure are weighing heavily on the economy. The economy is slowing to a near-halt, he says. Pakistan economy is slipping into recession, he says. The policy fous needs to shift from stabilisation to growth in order to avoid this situation. The government went to the IMF for a $7.6 billion loan in November 2008 as it faced a balance-of-payments crisis and quick depletion of foreign exchange reserves. The subsequent build-up of forex reserves and a stable rupee have helped to bring down inflation and allow the government to meet its external debt obligations. saad khan




GDP reduced to $161bn from $165!
That mean we acheived -2% fall in our GDP!
GO Musharraf GO!


----------



## Hyde

Hasnain2009 said:


> GDP reduced to $161bn from $165!
> That mean we acheived -2% fall in our GDP!
> GO Musharraf GO!



The GDP increased 2% in Rupees but the Dollars value decreased by 20% i think so in when all money converted into Dollars...... The GDP was in negative figures


----------



## TopCat

Mr X said:


> The GDP increased 2% in Rupees but the Dollars value decreased by 20% i think so in when all money converted into Dollars...... The GDP was in negative figures



Why everybody is so worried about GDP in dollar term? Does any Pakistani go to market with dollar to buy their food? If not then forget dollar. In Rupee terms GDP grown so count on it.


----------



## muse

*Politics of poverty *
Shahzad Chaudhry


In the days leading up to the next fiscal years budget, what has been keeping the mandarins of the finance ministry engaged has been another matter  how poor are Pakistanis?

By all accounts, and some verified numerical processes of none other than the World Bank, the poverty rate for 2007-8 had been determined at 17 percent. This would have been a six percent reduction in poverty over the 2006-7 performance of the economy when the poverty figure came down from thirties to around 23 percent.

Implicit in the fidelity of these figures of poverty was the acknowledgement that the Pakistani economy had indeed done extremely well during the Aziz years. One is forced to differentiate between the Musharraf and the Aziz years, simply because the wheels began to turn better and smoother from 2004 onwards till grinding to a halt in 2008-9, after the advent of real democracy. Give the devil his due. They  the Musharraf-Aziz duo  at least did better on the economy  2005-6 produced the best ever GDP growth  in budgetary terms it was a stellar performance.

Immediately after the February 2008 elections, and particularly in the last two months of that financial year, the global pricing regime in commodities went through a tsunami, which actually gathered pace in the second half of 2008, assuming astronomical proportions and robbing central banks of their hard-earned dollars; all this happened under the watch of the democratic government of the PPP. The countrys foreign exchange reserves shrank from the healthiest ever number of around $17 billion just before the 2008 elections to as low as $3 billion just within a year. That is when Pakistan had to return to IMF care.

*At the current $11 billion reserve mark, certain stability in macro-economic indicators can be claimed, but the loss of rupee value will perhaps remain irrecoverable. Rupee depreciation coupled with quadrupled commodity prices spurred inflation  at its worst, it stood at 30 percent; it now hovers around 20 percent.

This is the background to the poverty issue. What really lies behind this arithmetic of poverty actually has an eye to the future. In a years time, when the 2010-11 budget is to be presented, they will be reviewing the 2009-10 performance and finalising numbers for the year gone by. It is then that todays handiwork will become crucial. With the global economy still not out of the woods, trade sufficiently depressed, capital restricted, Pakistans economy on teeters with an on-going insurgency draining resources, the prognosis doesnt seem good.*

Per capita GDP in real terms, which has slid back already, is likely to go further back; and the IMF terms of engagement will keep the economy on a drip-feed while it tries to wrestle with macro-economic sustainability. Such an environment will only add more numbers to real poverty, adding to the poverty rate in a years time.

*This is where the differential between the 2008-09 and 2009-10 poverty figures will begin to give expression to the performance perception; and this reality haunts the current political leadership. As an interim, the ministry of finance has asked for a review of poverty figures in the last quarter of the previous fiscal year to look for higher final figures in poverty for the year under review, so that the differential with the likely numbers for 2009-10 does not look too dismal.*

Same has been the case with the review of annualised GDP numbers for 2007-8, which are now revised from the earlier reported 5.5 percent to 4.1 percent. That doesnt make 2 percent look as bad in comparison. This to me is probably the first time ever that a government is trying to make the countrys economic performance look poorer.

*Is there a way out? The 2009-10 Budget does not reflect that. Budgets in Pakistan have, for some reason, always been characterised as Houdinis acts; this one is a lot more  as they say in aviation terms  on a wing and a prayer. Dependence on donors pledges is so pervasive that most television channels now need to run a line asking the nation to pray for the success of the prayer on which the Budget is premised!*

We need to take a leaf from Shaukat Azizs book: the man knew how to make a quick buck (no pun intended). It took the Sri Lankans thirty years to reach a figure of $1 billion in the export of tea  their prime and most valued produce. Compare that to the contemporary financial system and you might just raise the figure in a couple of days.

*In modern economic parlance, this is termed the miracle of globalised service economies. If not for that, Singapore would not be the richest country in Asia in per capita GDP terms; Hong Kong would not be the financial hub that it is  when China reacquired Hong Kong from Britain, Hong Kongs reserves were higher than those of mainland China in dollar terms; and the City of London, a separate entity within the London metropolis, would not be the hub of Europes financial system.

Shaukat Aziz, a banker, knew the value of rotating capital; money in rotation generates wealth, and in turn makes all those coming into contact richer. This opens avenues of investment enabling the shares to reach the wider population. Shaukat Aziz understood this well, and that is why Pakistans services produced this overpowering wave of economic activity; this was what attracted capital from abroad as well as from within*.

*By depressing the services sector over the last year-and-a-half, and by a strange quirk of logic assuming it to be an exclusive process by instead focusing on production alone, the economy has been robbed of support to the services sector, which is 52 percent of the economy in GDP terms. Production is key to the sustainability of the economic core, and must therefore be given its due importance, but do not forget to generate wealth  that is what people wait for and are hoping to realise soon.

Whether Keynesian postulates support so, I do not know; but what I do know is that well being is not only having the right amount of wheat and rice in your home, it also, and more so, is reflected in what you drive and what you wear and possess. The 21st century definitions of well being have undergone a sea change, and our economic policies need to reflect that. Sadly, it is not so*.

Look at India. For years, a 3 percent growth economy, sticking to Nehrus puritan socio-economic values. The only thing missing was that they did not call each other comrade. It was only when the world went flat, to borrow Thomas Friedman, and services ended up being routed to India, mostly back-office work  outsourcing they called it  and Bangalore became the worlds intellectual back-shop, and money grew, and well-being began to be sensed, that the Mittals returned, the Ambanis became relevant, and the Tatas found rejuvenation.

Sentiment is what drives economies. For a long time, they have been calling it the feel-good factor. And what will take you there is capital and its rotation  not hoarding money. Produce and production are good sustaining economic values, but it is services that will get you there quicker. We need to re-learn our economics better. That is how the rest of the world made it; with better sense we could too. It has been done before, remember.

The writer is a security and defence analyst. He can be contacted at shahzad.a.chaudhry@gmail.com

Reactions: Like Like:
1


----------



## Hasnain2009

iajdani said:


> Why everybody is so worried about GDP in dollar term? Does any Pakistani go to market with dollar to buy their food? If not then forget dollar. In Rupee terms GDP grown so count on it.



It matters, dollar is loosing its strength in international market, but pakistan's currency is losing its value with more speed, bcoz of inflation, and our imports were above $40bn in 2007-2008, that means if u import good "A" @ $1, and 1USD = 60PKR, then u would sell it in pakistan @ 60PKR, but if ur curreny lose its value, $1 = 80PK, then u would get the same thing @ 80PKR!


THat means $40bn = PKR2400bn($1=60PKR)
THat means $40bn = PKR3200bn($1=80PKR)

This is the difference,

And our external debt is near $50bn,

$50bn = PKR3000bn($1=60PKR)
$50bn = PKR4000bn($1=80PKR)

THat means pakistani tax payers would have to pay 1000billion rupees extra only on debt bcoz of depreciation of currency!


Happy??

Reactions: Like Like:
1


----------



## white_pawn

*Budget 2009-10​* Dawn Editorial 

The budget for the next financial year must stimulate growth, repair the broken economy, mitigate the pain being felt by the poor and revive public trust in the governments capability to ferry the country through the present tough times. The budget speech delivered by State Minister Hina Rabbani Khar on Saturday evening pledges to address all these challenges as well as meet public expectations. The government has promised to boost the economy, create new jobs and protect existing ones, alleviate poverty, bring down price inflation, curtail unproductive expenditure, raise tax revenues and provide relief to the poor.

The outgoing fiscal 2008-09 has been painful for the people as price inflation soared, power and gas bills swelled, real incomes shrank, and healthcare and education expenditures rose. It has also been very difficult for the manufacturing sector: industrial output dropped substantially, not least because of the domestic and global demand contraction, energy shortages, security concerns and expensive credit. Millions lost jobs and an even larger number is waiting to be fired unless the economic conditions improve soon.

The year has not been easy for the government, which took over at a time when foreign inflows were drying up, oil prices were shooting through the roof and the global economy receding into a decline not seen in 80 years. After initial inaction, the government had to work hard to stabilise the economy and improve the deteriorating balance-of-payments situation. While seeking to stabilise the economy, it had to face public ire for cutting energy and food subsidies and curtailing funds for development. It, however, should be commended for taking politically tough decisions on which the previous government under Gen Pervez Musharraf had dithered. Having stabilised the economy over the last two quarters, it is essential that the government now concentrates on growth.

Apparently, the budget for the next fiscal is headed in this direction. If rising unemployment and poverty are to be tackled on a sustainable basis, the country must grow, and fast. Several fiscal and tax incentives have been proposed for the rejuvenation of industry and agriculture, the two most vital sectors of the economy. Besides setting up a fund to boost exports, the budget contains proposals for a quicker revival of the construction, auto and elecommunication sectors. 

These sectors are expected to lead the economic recovery during the next year, just as they did for several years in the period 2003-07. The public sector investment in the social and economic infrastructure  particularly in water and power, irrigation, roads, education and health  under the Public Sector Development Programme should also help kick-start economic growth. Thus it should not be a problem for the government to achieve the target of 3.3 per cent GDP growth.

But successful revitalisation of growth hinges on two variables: foreign assistance and collection of targeted tax revenue. The government is expecting Rs138bn in foreign assistance and another Rs170bn from the Friends of Pakistan Group. 

The tax revenue target of over Rs1.5tr may also be too ambitious even if the economy were to recover. Although the government has doubled capital value tax on real estate transactions and withholding tax on imports and pledged to extend the scope of tax on several services, it will find it difficult to meet the tax target, especially in the light of the dismal performance of collectors during the outgoing year. Some of the impact of the increase in existing taxes would be offset by tax incentives given to the car and telecom sectors. 

It is unfortunate that the rulers have again failed to tax the rich agriculturists. Any shortfall in tax collection or foreign assistance targets could force the government to borrow more from domestic sources or cut development spending at the cost of economic recovery. Additionally, rising oil prices continue to pose a serious risk to efforts aimed at curbing inflation and bridging the current account deficit. But, as they say, we should begin the new year on a positive note.


----------



## white_pawn

*Pakistan asks IMF for $4bn to plug budget deficit*​By Mubarak Zeb Khan 
Sunday, 14 Jun, 2009

ISLAMABAD: Pre-empting possible delays in external flows, Pakistan has asked the International Monetary Fund (IMF) for a $4 billion stand-by loan to finance the yawning budget gap in the year 2009-10 in case multilateral donors fail to release the pledged amount to Islamabad.

This facility is insurance, which can be used in case the assistance from the multilateral donors or friendly countries delayed or does not arrive, Adviser to Prime Minister on Finance and Revenue Shaukat Tarin told newsmen in the post-budget press conference here on Sunday.

He said that this facility would be finalized in the next IMF board meeting. This funding will not be used to build up reserves, but to financing the budget deficit, he added.

The government estimated a budget deficit of 4.9 per cent of GDP next year, which is higher than the 4.6 per cent agreed with the IMF. Analysts estimated the deficit is likely to be between five per cent and 5.5 per cent by the end of next year. This will be mostly funded through the $5 billion pledges made in the Tokyo meeting last April.

Pakistan received $4.8 billion from Asian Development Bank, World Bank, Islamic Development Bank and other friendly countries including Saudi Arabia during the current fiscal year. A similar amount of $4 billion is expected next year from these sources, Mr Tarin claimed.

You can not say multilateral donors will not provide loan next year. Friends of Pakistan also committed $5.2 billion for two years (over $2.6 billion per year), he said. Of these $1 billion each would come from USA and Japan and the rest from other countries.

He said that there is no pressure on government money. He said that administrative measures would be taken to improve the revenue collection in the next year; more than Rs66 billion would be raised under revenue measures taken in the budget.

The carbon tax would help the government raise more than Rs134 billion in the next year. The carbon tax is aimed to reduce consumption of the petroleum the adviser said.

With an increase in oil prices, the component of carbon tax would also increase, which would be passed on to end consumer fueling further inflation. 

Mr Tarin said that phasing out electricity subsidies were meant to improve the efficiency of power producing companies. He agreed with a questioner that this would directly raise electricity rates. However, he would not disclose the exact per centage increase in power tariff. 

With the phasing out of electricity subsidies and carbon tax, inflation is likely to rise. However, Mr Tarin claimed the government would bring down inflation to 9.5 per cent next year from an expected 12.5 per cent during the current fiscal year.

He said that the NFC will be reconstituted within next 90 days. I can not head NFC as I am not an elected person, he said. The pay and pension committee would give proper recommendation to raise the salary of government employees in line with market salaries. He said the government would make further adjustments in salaries of employees in December.

He said with Pakistans economy stabilizing and inflation settling at single digit, important measures will be in place under an innovative roadmap to revive the economy on sustainable grounds, but with a human face, hiking allocations in health and education sectors and alleviating poverty in a transparent manner. 

He said administrative expenditures would be sliced down by Rs120 billion to cut the budgetary deficit.

He said non productive subsidies are being done away with this year. Foreign exchange reserves stood at $11.30 billion while GDP valued was valued at Rs14.82 trillion. 

Responding to a query about the entitlement of 15 pc adhoc relief with regard to regular, contract and daily wage employees of the government and semi-government corporations, the advisor said that all those who were getting their salaries from the national exchequer will be entitled to adhoc relief.


----------



## white_pawn

*Farm sector registers stronger than expected growth​* By Khawar Ghumman 
Friday, 12 Jun, 2009

ISLAMABAD: Agriculture is the only sector registering a growth rate of 4.7 per cent during last year against a target of 3.5 per cent, National Economic Survey 2008-09 revealed.

The performance of agriculture sector has been stronger than expected during 2008-09. During 2007-08 the sector grew at a dismal rate of 1.1 per cent, it said.

Agriculture sectors promising growth of 4.7 per cent was largely attributed to the bumper wheat, rice and maize crops, which have been estimated at 23.42 million tons, 6.9 million tons and 4 million tons, respectively, despite the fact these corps received less water than required.

Major crops accounted for 33.4 per cent of agricultural value addition and registered stellar growth of 7.7 per cent as against negative 6.4 per cent last year. Minor crops contributing 12 per cent to overall agriculture grew by 3.6 per cent as against 10.9 per cent last year. 

Similarly, the performance of livestock, the single largest contributor to overall agriculture (51.8 per cent) grew by 3.7 per cent in 2008-09 as against 4.2 per cent last year. The fisheries sub-sector performed positively at 2.3 per cent though the previous years growth stood at 9.2pc. 

However, forestry, which had been experiencing negative growth since 2003-04, this year too, has posted negative growth of 15.7 per cent in a row.

During the current fiscal year the availability of water for Kharif for the crops such as rice, sugarcane and cotton has been 0.3 per cent less than the normal supplies and 5.5 per cent less than last years Kharif. 

The water availability during Rabi season for major crops (such as wheat) is estimated at 24.9 MAF, which is 31.6 per cent less than the normal availability and 10.7 per cent less than last years Rabi season.

The domestic production of fertilizers, an important part of agriculture sector, during the first nine months (July - March 2008-09) of the current fiscal year was up by 3.6 percent as compared with corresponding period last year. 

On the other hand, the import of fertiliser decreased by 51 per cent. The availability of fertiliser also decreased by 11.9 per cent during the same period last year. 

Agricultural loans amounting to Rs151.9 billion were disbursed during July-March 2008-09 as against Rs138.6 billion during the corresponding period last year, thereby registering an increase of 9.6 per cent.

Reactions: Like Like:
1


----------



## Neo

*$4 billion IMF aid to be sought if FoDP's pledges delayed​* 
ISLAMABAD (June 15 2009): The Advisor to Prime Minister on Finance, Shaukat Tarin, said on Sunday that in case of any delay in receipts of pledges from Friends of Democratic Pakistan (FODP) Pakistan has lined up commitment of $4 billion from the International Monetary Fund (IMF).

Addressing the post-budget news conference here, he said that FODP forum has been requested to give money for social sectors so that the growth-oriented policy could be pursued and implemented in true spirit through financial resources available with the country. He said that the World Bank, the Asian Development Bank, and Islamic Development Bank (IDB) would give $4.80 billion in the next two years. An assistance of $5.80 billion is expected from FODP forum in the same period.

"After achieving targets of economic stabilisation plan, the economy is poised to go for sustainable, equitable and job creating growth. The current account deficit and fiscal deficit are well under control.

The budget 2009-10 is focused on agriculture and manufacturing with agenda of enhancing productivity level through improvements to human capital base and physical infrastructure and ensure availability of cost effective energy in the country.

Shaukat said that during 2008-09 the response of this government was phasing out of the subsidies and sustaining the budgetary resources. He said that the expenditures were rationalised through a process of prioritisation of government development schemes to reduce budget deficit.

He said in this regard development expenditures were reduced and went down by Rs 120 billion. He added that SBP followed a tight monetary policy to reduce the aggregate demand and to bring down inflation. There were adjustments in petroleum prices and electricity prices to reduce burden on the budget, he added.

He said that net borrowing from SBP as of October was Rs 252 billion to Rs 258 billion. "By March it had been reduced to Rs 58 billion, which means we have started paying back to the SBP rather taking from it".

He said that import of non-essential items was curtailed by tariff adjustments to reduce the trade and current account deficits. He said that fiscal deficit has remained on target which means it has come down from 7.6 percent in 2007-08 to 4.3 percent in 2008-09. He said that current account deficit has been reduced from 8.5 percent to 5.3 percent of GDP, again a reduction of 3.2 percent in one year.

"Our tax and duty measures in Budget for Fiscal Year 2009-10 would revolve around providing protection to the poor and vulnerable against the current economic downturn by providing cash transfers and skill development, reviving manufacturing and industry, especially export-oriented industry, to raise their productive levels, broadening the tax base, instead of overburdening the existing taxpayers, and restraining unnecessary imports to improve the Balance of Payments position."

Tarin told a questioner that budgetary deficit will be around 3.4 percent during next fiscal year. Non-productive subsidies are being done away with this year, he said, adding that foreign exchange reserves stood at $11.30 billion while Gross Domestic Product valued Rs 14.82 trillion.

Responding to a query about entitlement of 15 percent ad hoc relief with regard to regular, contract and daily wage employees of the government and semi-government corporations, the Advisor said that all those who were getting their salaries from the national exchequer will be entitled to ad hoc relief. He said that levying carbon surcharge on POL products is a permanent feature and to help cut demand. "This will remain intact," he reiterated.

He said that the government would soon complete the National Finance Commission (NFC) Award within the next three months. This will help fair distribution of national resources between Centre and provinces. Tarin said that there was no jugglery of figures in the budget. "The Federal Budget 2009-10 is an open document. We have placed all our budget documents in the media cell of Ministry of Finance to maintain transparency," he added.

The government would pass on to the consumers impact in case oil prices increase along with rates of carbon surcharge on POL products. Although the government has imposed carbon surcharge on CNG, it would remain 35 percent cheaper than POL products and the aim of the government is to ensure use of gas resources wisely.

"Earlier, the CNG price was 58 percent of the POL products prices and now we have raised it from 58 percent of POL products prices to 65 percent of the POL products prices," he said.

The government would collect Rs 134 billion from carbon surcharge on POL products and carbon surcharge on CNG imposed in the budget 2009-10. Rs 122 billion would be collected from carbon surcharge on POL products and Rs 12 billion from carbon surcharge on CNG in next fiscal year 2009-10. Carbon surcharge on POL products will be Rs 8 per litre on high speed diesel oil (HSDO), Rs 10 per litre on motor spirit (petrol), Rs 6 per litre on kerosene oil, Rs 3 per litre on light diesel oil, and Rs 6 per kg on CNG.

He said that out of $1.5 billion Kerry Lugar Bill aid to be received from United States, $1 billion or Rs 80 billion would be spent in terrorism affected 25 percent districts of NWFP, Balochistan and Punjab during 2009-10.

He said NFC issue has been discussed in the special Cabinet meeting and Prime Minister would soon re-constitute Commission to hold detailed negotiations with provinces. Issue of arrears of Net Hydel Profits of NWFP against Wapda would also be discussed during NFC Award negotiations.

He said that power tariff increase would be made in case it was necessary, in gradual manner but not in one go. He hinted that the government would not pass on to the consumers the inefficiencies of public sector entities that are wasting Rs 150 to Rs 200 billion due to their inefficiencies. The government would reduce the line losses of distribution companies to keep the power tariff at reasonable level.

He clarified that Rs 19.4 billion that has been indicated income from privatisation in 2009-10 would mainly come from $700 million remaining PTCL privatisation proceeds that were held up due to the dispute over assets in provinces. He said that the issue has been resolved with the provinces and Etisalat will release to Pakistan the remaining privatisation proceeds soon.


----------



## Neo

*12.7 percent drop in CFS investment​* 
KARACHI (June 15 2009): Investment under CFS at the Karachi share market declined by 12.7 percent to Rs 68 million on Friday. The CFS rate, however, increased to 50 percent as compared to 31.02 percent of previous week. The top 5 scrips by CFS investment were Engro, POL, NBP, Lucky and MCB, contributing 94 percent of the total investment.


----------



## Neo

*Export investment support fund of Rs 40 billion to replace R&D facility: subsidies slashed by Rs 16.3 billion​* 
ISLAMABAD (June 14 2009): The government has slashed subsidies to Rs 13.2 billion (1.9 percent of GDP) in 2009-10 from Rs 29.5 billion (2.4 percent of GDP) in 2008-09 as per the agreement with the International Monetary Fund (IMF). However, the amount of subsidy for import of wheat, reimbursement of losses for cotton operation to Trading Corporation of Pakistan (TCP), sale of Atta and Ramzan package has been increased.

The amount of subsidy to oil refineries/OMCs/others has been reduced to Rs 15 billion from Rs 140 billion in the 2008-09 budget estimates and Rs 70 billion in the revised allocation for 2008-09. At the same time, the facility of Research and Development (R&D) for the textile sector has been completely withdrawn. The government had allocated Rs 4 billion for this sector in 2008-09 as is being shown in the revised figures. Three percent mark-up subsidy to spinning sector has also been reduced to Rs 500 million from Rs 810 million earmarked in the revised estimates for 2008-09.

In order to help the textile and other export industry - Rs 40 billion export investment fund is proposed to be established. Around Rs 27 billion will go to Pakistan main export earner - cotton and textiles - and Rs 13 billion for other export sectors to boost export earnings.

However, motorcycle industry will continue to enjoy a subsidy of Rs 25 million. According to budget documents, there will be no subsidy for import of phosphatic and pottasic fertiliser, DAP fertiliser, but import of urea and tractors under Benazir Tractors Scheme (BTS) will be subsidised.

The Water and Power Development Authority (Wapda) will get Rs 62.9 billion in the budget as General Sales Tax (GST), GoP's share for agriculture tubewells, Wapda tubewells (Balochistan), inter-Discos tariff differential. The government has also allocated Rs 3 billion to pay interest on TFCs and Rs 1 billion for Fata. Last year, the government did not earmark any amount for this purpose. The government will pay Rs 3.8 billion to KESC as GST, differential agriculture tubewells in Balochistan, tariff differential and payable to PSO and PGCL.

TCP will get Rs 25.5 billion as subsidy for import of wheat against Rs 20 billion fixed in the outgoing fiscal year however, subsidy for sugar import has been reduced to Rs 4 billion against Rs 6.3 billion in 2008-09. TCP will also get Rs 500 million for cotton operations against Rs 300 million in 2008-09. The documents further reveal that subsidy for ghee package (USC) has been slashed to Rs 1 billion as compared to Rs 1.5 billion for the outgoing fiscal year, but the subsidised amount for sale of pulses will remain the same at Rs 500 million. The amount for sale of Atta has been increased to Rs 1.2 billion against Rs 500 million of 2008-09. A sum of Rs 1.5 billion has also been earmarked for the Ramazan package against Rs 200 million allocated in the budget 2008-09 and revised allocation of Rs 1.3 billion.

Subsidy for misc/export of wheat has been slashed to Rs 320 million from Rs 672 million actual allocation and revised target of Rs 286 million in 2008-09. However, Passco will get Rs 2 billion subsidy for paddy operation. In 2008-09, the government did not earmark any subsidy for this purpose.

FFC Jordan will get Rs 210 million as subsidy in 2009-10 against Rs 231 million allocated in the 2008-09. Subsidy for sale of wheat in Fata has been increased to Rs 216 million from Rs 195 million whereas the amount for sale of wheat, salt and sugar in Gilgit Agency has been enhanced to Rs 264 million from Rs 606 million.

Subsidy for terephthalic acid has been reduced to zero percent from Rs 2000 billion in the revised estimates of 2008-09. No subsidy has been earmarked for Pakistan Dairy Development Company. In 2008-09, the government extended Rs 81 million to this company. The amount of subsidy for Soprest/GIK will remain at the level of Rs 78 million.


----------



## Neo

*Annual Plan envisages 3.3 percent GDP growth: agriculture sector to contribute 3.8 percent, services 3.9 percent​* 
ISLAMABAD (June 14 2009): The government on Saturday launched the Annual Plan as a component of the 2009-10 budget that envisages a 3.3 percent GDP growth rate with major contributions from agriculture (3.8 percent), manufacturing (1.8 percent), and services sector (3.9 percent). The Annual Plan mainly focuses on the strategy to ensure economic recovery consistent with stabilisation of the economy, maintaining the growth momentum of agriculture sector, and revival of the industrial sector.

The Plan also emphasises achieving the Millennium Development Goals (MDGs) and reducing poverty through a comprehensive social protection system with an exit strategy. It would facilitate balanced development by reducing regional disparities and ensuring rehabilitation and reconstruction of conflict zones.

The strategic thrust of the Annual Plan 2009-10 has been derived from the nine-point economic agenda of the government which envisages supporting critical infrastructure gaps in water, power and transport sectors with the objective of enhancing competitiveness in the economy.

The agriculture sector is projected to grow by 3.8 percent, to be contributed by growth rates in major crops (3.5 percent), livestock (4 percent), fisheries (2.4 percent), and forestry (1 percent). Extra efforts would be needed to increase the agriculture output, given the high production base of 2008-09, attributed to good harvest of wheat, rice and cotton. The prospects for economic growth in 2009-10 focus on the revival of the manufacturing sector growth rate, which has been targeted at 1.8 percent during 2009-10.

The large-scale manufacturing is targeted to grow by 1 percent. This should be viewed in the backdrop of 7.7 percent negative growth recorded in 2008-09. Based on the growth in agriculture and manufacturing combined with the expected contraction in imports by 5 percent, the services sector is likely to grow by 3.9 percent, with wholesale and retail trade growing by 3.3 percent and finance and insurance by 3 percent.

Total investment is projected in the vicinity of 20 percent of GDP in 2009-10. National savings as a ratio of GDP is projected at 14.7 percent, implying that almost 74 percent of investment will be financed through national savings. This will leave 26 percent of investment to be financed from foreign savings, which will be 5.3 percent of GDP.

The main thrust of fiscal policy during 2009-10 would be to keep the fiscal deficit within sustainable limits by furthering reforms in the tax system, broadening the tax base, improving tax compliance and minimising tax evasion. The monetary expansion for the year 2009-10 will be in line with the projected GDP growth of 3.3 percent and CPI inflation of 9 percent.

The target rate of inflation for 2009-10 is set at 9 percent as against expected 20 percent in 2008-09. CPI Inflation would remain sensitive to growth in money supply, increase in utility prices, fluctuation in international oil and commodity prices and, above all, to inflationary expectations.

On account of the global economic slowdown and due to domestic energy and law and order situation, exports (fob) for 2009-10 are projected at $18.3 billion, against $18.6 billion estimated for 2008-09. Imports during 2009-10 are estimated to decrease by 5.6 percent to $28.9 billion from $30.7 billion in 2008-09. As a result, the trade balance is projected to be in deficit by $10.7 billion in 2009-10.


----------



## Neo

*BUDGET 2009-10: Rs 2.48 trillion outlay envisages 85 percent raise in development expenditure​* 
ISLAMABAD (June 14 2009): The Minister of State for Finance and Economic Affairs, Hina Rabbani Khar, on Saturday unveiled the Federal Budget for 2009-10, according to which total outlay for the next fiscal year will be Rs 2.482 trillion, which is 23.5 percent higher than the budget estimates of 2008-09.

Rs 646 billion allocated for PSDP Rs 722.7 billion gap to be financed with Rs 264.9 billion foreign loan and Rs 457 billion domestic borrowing Rs 660 billion to go to debt servicing Rs 175 billion administrative expense

-- Reckons IMF conditionalities

-- Targets 4.9 percent fiscal deficit

-- Shows relatively moderate burden of new taxes

-- Seeks industry's revival

The consolidated budget of the federal and provincial governments has been estimated at Rs 2.897 trillion, whereas total resources are estimated at Rs 2.174.9 trillion, with a consolidated budget deficit of Rs 722.7 billion, or 4.9 percent of GDP, which is 1.5 percent higher than what was agreed in the Letter of Intent (LoI) agreed with the International Monetary Fund (IMF) in March 2009.

This deficit will be financed by Rs 264.9 billion foreign and Rs 457.6 billion domestic loans. Analysts are of the view that the government may have agreed with the IMF team to slash the development program by the end of the year to meet the agreed target of budget deficit or may later renegotiate the target based on global economic performance.

Total resource availability during 2009-10 has been estimated at Rs 2.318 trillion, against Rs 1.836 trillion in the budget estimates of 2008-09. According to official budget documents, net revenue receipts for 2009-10 have been estimated at Rs 1.372 trillion, indicating an increase of 23.3 percent over the budget estimates of 2008-09.

The provincial share in federal revenue receipts is estimated at Rs 655 billion during 2009-10, which is 15.3 percent higher than the budget estimates for 2008-09. The capital receipts (net) for 2009-10 have been estimated at Rs 191 billion, against Rs 221 billion budget estimates of 2008-09.

The external receipts in 2009-10 are estimated at Rs 510 billion, which shows an increase of 70 percent over the budget estimates of 2008-09. The overall expenditure during 2009-10 has been estimated at Rs 2482 billion, of which the current expenditure is Rs 1699 billion, and development expenditure at Rs 803 billion.

Current expenditure shows an increase of 3.5 percent over the revised estimates of 2008-09, while development expenditure will increase by 68.1 percent in 2009-10 over the revised estimates of 2008-09. The share of current expenditure in total budgetary outlay for 2009-10 is 68.5 percent, as compared to 79 percent in the revised estimates for 2008-09.

The expenditure on General Public Services (inclusive of debt servicing transfer payments and superannuation allowance) is estimated at Rs 1189 billion, which is 70 percent of the current expenditure. The size of Public Sector Development Program (PSDP) for 2009-10 is Rs 646 billion, while for other development expenditures an amount of Rs 157 billion has been allocated.

The PSDP shows an increase of 54 percent over the revised estimates 2008-09, which were mercilessly slashed during the current year to meet the budget deficit target agreed with the IMF. The provinces have been allocated an amount of Rs 200 billion for budget estimates 2009-10 in their PSDP.

An amount of Rs 25 billion has been allocated for Earthquake Reconstruction and Rehabilitation Authority (Erra) in the PSDP 2009-10. However, there are no foreign loans expected for this purpose in 2009-10. The budget for fiscal year 2008-09 was estimated a total of 31250 million rupees but the revised estimates gave a zero figure. It is not clear whether this is indicative of the donors' backing out of their commitments.


----------



## Neo

*Economists term budget good under difficult conditions​* 
LAHORE (June 15 2009): Despite disagreements on several matters of governance and implementation, some well-known economists have described the Federal Budget 2009-10 as good under the present abnormal and insurgency conditions of Pakistan.

A former Secretary Planning Commission of Pakistan who wished not to be named said: "what do you expect when the country is fighting the most deadly international war against terrorism and insurgency that has displaced 3.5 million people, the highest number of people anywhere in the world?

He said the government has to increase defence budget to crush the insurgency and restore writ of the government, make huge allocations to look after the 3.5 million internally displaced persons (IPDs), improve the law and order situation and restore confidence of the local and foreign investors in the political and economic stability of the country.

He termed it as "a good budget in extraordinary circumstances under difficult conditions at a critical juncture of Pakistan's history. Another entrepreneur and former senior vice president of Lahore Chamber of Commerce and Industry Sohail Lashari described the budget as "ambitious with difficult targets to achieve".

Talking to Business Recorder Lashari said though the budget proposals do not indicate any unusual policy direction or vision of the present government, yet everything depends on the mechanism and good governance to achieve the budgetary targets for the FY 2009-10.

Lashari said it is a pity that the government does not envisage any steps to utilise 20,000 MW electricity generation capacity of present hydel and thermal power plants to overcome the on-going load shedding that has crippled our industrial and agriculture sectors. "The government should have cleared the accumulated debt of the IPPs and done with the circular debts to make the country self-sufficient in electricity", he added.

Prominent agronomist Hamid Malhi said: "it is the agriculture sector that has given social and food security to the country and has registered 4.7 percent growth during FY 2008-09. "Instead of going to International Monetary Fund (IMF) and Friends of Pakistan for seeking loans, the government should streamline its agriculture sector which has the potential to solve all economic problems and mitigate poverty in the country.

He said: "we have large surplus quantities of wheat and rice worth $4.5 billion that could be exported to meet the foreign exchange needs of the country". "We must strive for self-reliance and exploit our own resources to put everyone on work either in the agriculture fields or factories", he opined.


----------



## Neo

* Tarin eyes 6pc inflation in 2011-12​*
Monday, 15 Jun, 2009

ISLAMABAD: Adviser to Prime Minister on Finance Shaukat Tarin said here on Sunday that the average inflation target had been set at 9.5 per cent for the current fiscal year, APP reports.

Speaking at the post-budget press conference here he said that inflation would be brought down to seven per cent during the fiscal year 2010-11 and to six per cent in 2011-12.

He said that inflation started to rise steeply and peaked at 25 per cent in October 2008. But because of the governments efforts it declined to 14.4 per cent in May this year.


----------



## Neo

*Status quo is maintained in fiscal year 2010 budget​* 
ARTICLE (June 15 2009): FY09, termed as a year of consolidation by Advisor to Prime Minister, is the worst economic year of the decade, as real economic growth is estimated to dip at 2.0 percent (lowest in eight years) against the average of 6.3 percent in last six years, amid global recession graduating to depression and militant insurgencies compelled war in northern area.

The government has already spent $35 billion to counter extremism in Pakistan in last few years. FY10 Budget, in our view, is a status quo budget. However, it has given direction towards industrial revival and poverty reduction. Medium-term focus in coming three years is to strike a balance to curtail deficits by revenue enhancement and import curbing measures while applying adequate resources to address poverty and boost growth.

Pakistan's economy under IMF program has shifted its policy mix to tightening fiscal and easing monetary policy--against the initial stipulated conditions of IMF--from a reverse stance witrillionessed in FY02-07 period. A total federal Budget outlay of Rs 2.48 trillion has been announced for FY10 with a deficit of Rs 722.5 billion (4.9 percent of GDP).

This deficit is targeted to be financed by external and internal sources of Rs 265 billion and Rs 458 billion, respectively. An optimistic tax revenue target of Rs 1.51 trillion (28.2 percent higher than revised FY09 target) is set. Current expenditure is envisaged to decline in phased manner by reducing it to 15.3 percent and 14.7 percent of GDP in FY10 and FY11, respectively. This is to be achieved by abolishing non-productive subsidies.

In the midst of arguably worst ever global crisis, with world economies dwindling by 1.3 percent, real GDP of Pakistan is estimated to grow by a meagre 2 percent, with commodity producing sector, including agriculture and manufacturing sector, depicting a growth of 0.2 percent--lowest in last 15 years. The agriculture sector has shown some resilience by 4.7 percent growth, beating the target of 3.5 percent.

The bumper crops of wheat and rice, along with high support prices and better water availability, paved the way for agriculture sector high growth. However, this is offset by dismal performance of manufacturing sector--declined by 3.3 percent. Large scale manufacturing subsector has got the major brunt of slowdown in exports, acute power shortage, tight monetary policy and war on terror by massive contraction of 7.7 percent in July-March period.

Services sector, nucleus of growth momentum in last six years, also felt the heat, showing a growth of 3.6 percent (last five years average was 6.9 percent). Finance and Insurance sector amid global deleveraging was the worst performing services subsector--declined by 1.2 percent against a growth of 12.9 percent of last year.

In March 09 LSM observed a decline of 20 percent YoY, if this trend would continue for last quarter of outgoing fiscal year, the real GDP growth estimate of 2 percent is in jeopardy. GDP is targeted to grow at 3.3 percent in FY10, whereas growth for FY11 and F12 is envisaged at 4.0 percent and 4.5 percent, respectively.

Agriculture is expected to grow at 3.8 percent in FY10. On the other hand, industrial and services sectors growth is forecasted at 1.8 percent and 3.9 percent, respectively. In order to help the ailing manufacturing sector, federal excise duty (FED) on CKD has declined by 5 percent to support automotive manufacturers and vendor industry. Moreover, FED on cement is reduced by Rs 200 per ton to promote construction activity in country.

Withholding tax on imported goods is increased by 2 percent to 4 percent to arrest the balance of payments crisis by curbing import demand. Customs duty on CBU motorcycle has been slashed by 5 percent to 65 percent, and import duty on four-stroke rickshaws is reduced by 12.5 percent to 20 percent to help lower middle class. Concessions have been given to Pharmaceutical raw materials, life saving drugs and cancer diagnostics in upcoming financial year.

Reliefs available to agriculture sector in the form of duty exemption on tractors, gas subsidy on fertiliser, subsidy on running tube-wells and wheat support prices are continued. On capital markets, especially stock market, a status quo is maintained with no new levy or no incentive announced amid worst ever stock market crash last year.

However, commodity-based sectors listed at stock exchanges have some positive relief measures in offering. Cement, automotive and pharmaceuticals sectors profitability and revenues would likely enhance by tax incentives mentioned above, whereas banking and oil sector would not have any significant direct impact from any taxation measure. Per capita income in dollar terms has shown a meagre growth of 0.3 percent to $1,046.

Real private consumption has attained a growth of 5.3 percent. However, medium to long term growth indicator, gross fixed capital formation has depicted a decline of 6.9 percent. This anomaly is synonymous to denial stage of a broken relationship. Consumers generally take some time to adjust consumption pattern owing to change in macro economic factors that phenomenon is termed as overhang period.

Hence, in the absence of policy reforms to induce investment-friendly environment, the medium term growth stabilisation program is in jeopardy. The poor performance of LSM and decline in total investment (from 22.5 percent of GDP in FY07 to 19.7 percent of GDP in FY09) is partially explained by liquidity crunch--credit to private sector was just Rs 14.0 billion in July-May 09 as compared to Rs 383.6 billion in similar period of last year.

Money Supply (M2) expanded by a mere 6.5 percent versus last year's expansion of 15.4 percent. Government borrowing for budgetary support increased by Rs 321 billion as compared to Rs 364 billion in corresponding period of last year. SBP financing, inflationary in nature, soared by Rs 159 billion (similar periods last year: Rs 563 billion) - in line with IMF conditionality.

However, borrowing from scheduled banks increased by Rs 162 billion (decline of Rs 198 billion in similar period of last year), crowded out private investment visible from dismal commodity sector performance. In order to support the industrial sector, zero rated tax regimes for export-oriented sectors have been maintained.

Moreover, Rs 40 billion (Rs 20 billion each from development fund and commercial banks) are allocated for export-related sectors. This is in addition to relief measures mentioned above on cement, SMEs and pharmaceutical sectors. There is dearth of investment in health, education, modern agriculture (corporate farming) and industrial sectors in Pakistan.

With favourable demographics of Pakistan amid worsening security situation requires a pull strategy to attract foreign long-term investment in the above-mentioned area. It is imperative to formulate a pull strategy to attract the much-needed foreign investment in power generation plants and transport infrastructure.

There is abundance of untapped coal reserves all of which requires right technological investment to reduce its sulphur content and burn it to produce power. The policy makers remained silent on this issue for yet another year. A new levy, carbon surcharge, on petroleum products has been imposed.

However, in essence, it already existed in non-tax revenues under the head of petroleum development levy (PDL). Hence, 40 percent of increment in tax revenues (Rs 134 billion) is attributed to change in accounting treatment on petroleum levy. There was a tremendous pressure on the government to remove PDL amid high inflation and falling oil prices.

Hence, the government in line with developed countries' practice has imposed a carbon surcharge to protect environment and clear pricing mechanism. The question arises here that to protect environment what alternative incentives are in offering to reduce the consumption of high carbon content products like allocation of resources for better public transport or incentives for investment in low carbon content energy production technology.

None is mentioned in this regard. In an effort to expand tax base, capital value tax on immovable properties has been increased from 2 percent to 4 percent. Rs 132 billion (0.9 percent of GDP) are allocated to subsidies in FY10 Budget which is 48 percent lower than revised estimates of Rs 252 billion (1.9 percent of GDP) in outgoing fiscal year. The major reduction is witnessed on fuel and electricity subsidies.

Subsidies for power sector are slashed by 40 percent. Amid falling commodity prices, nothing is allocated for DAP fertiliser subsidy against revised estimate of Rs 21 billion in FY09. However, gas cross subsidy is decided to eliminate in phase manner to support industrial sector. Agriculture sector with 44.7 percent of labour force employment and 21.8 percent of GDP contribution is to continue to subsidise and remained out of tax net.

An optimistic tax revenue target of Rs 1.51 trillion (28.2 percent higher than revised FY09 target) is envisaged. Pakistan's tax-to-GDP ratio--one of the lowest in the region - is a prime issue of running high fiscal deficits. Although FBR tax collection was increased at an average of 16 percent per annum during FY00-09 as compared to 12 percent in the decade of 1990s, the tax-to-GDP ratio has declined from 11.0 percent in FY91 to 9.0 percent in FY09 (lowest in last two decades) against the ambitious target of 10 percent.

This necessitates serious reforms, both at institutional level to improve tax collection and policy level to broaden the tax net. The share of direct tax, however, increased from 18 percent in early 1990s to 39.6 percent in FY09, accounts for only 4 percent of GDP relative to 7 percent for other developing countries. Direct tax is more equitable and non-inflationary in nature but require efficient tax enforcing and collection institution.

Hence, reliance on indirect taxes (less equitable and inflationary in nature) exacerbates poverty issue. Within the ambit of indirect taxes, GST (over 60 percent of indirect taxes) increased by 17.5 percent in FY09 notwithstanding nominal GDP growth of around 42 percent. This also undermines the tax growth.

On the expenditure front, not much in policy makers' control to curtail current expenditure owing to domestic security situation. War on terror coupled with global financial turmoil hindered the privatisation process and narrowed the conduit of other forms of foreign investment. Only channel available is aid by bilateral and multilateral agencies to support resistance against militants and help IDPs.

In the outgoing year, fiscal deficit target of 4.3 percent is going to be met at the cost of development expenditure--fall to 1 percent of GDP in first half of FY09, lowest in five years. This is not desirable for medium term growth sustainability and poverty reduction. Fiscal deficit for FY10 is budgeted at 4.9 percent with PSDP allocation Rs 626 billion, current expenditure is budgeted at Rs 1,699 billion.

In order to address poverty, the Government has allocated Rs 70 billion for BISP in upcoming fiscal year to enhance its reach to 5 million poor families, whereas Rs 50 billion has been allocated for relocation of 2.5 million internally displaced people (IDPs) affected from Swat operation against militants.

How would government react if the pledged amount of around Rs 1.7 billion (Rs 1.2 billion from Friends of Pakistan and Rs 500 million form World Bank) by different donors does not materialise? The only rescue path to curtail deficit would again be development expenditure. Hence, to be self-reliant, structural reforms are imperative. Symbolically, higher government officials should reduce their perks and curtail the ever-increasing number of ministries.


----------



## white_pawn

*Punjab budget today: Rs eight billion being allocated for 'Sasti Roti Scheme' ​*MUHAMMAD SALEEM 
LAHORE (June 16 2009): Pakistan Muslim League-Nawaz (PML-N) led Punjab government is all set to allocate an amount of Rs 8 billion in the budget 2009-10 for 'Sasti Roti Scheme.' Sources in the PML-N told Business Recorder that Chief Minister Muhammad Shahbaz Sharif has already asked the authorities concerned to take effective steps to streamline 'Sasti Roti Scheme' so that poor people may get benefit from it.

In this regard, 'mohallah' committees are being set up to ensure the implementation of scheme in an effective manner. Further, the government is also setting up mechanical tandoors in Lahore, Rawalpindi, Gujranwala and Faisalabad. It may be mentioned that 12, 000 tandoors are functioning at present in Punjab for supplying sasti Roti. The government intends to involve civil society, philanthropists, chambers of commerce and industry, teachers, retired government officers, social workers and public-spirited persons in this programme.

The second provincial budget of the PML-N led coalition government for the year 2009-2010 is being presented in the Punjab assembly on Tuesday (today) for which all the arrangements have been finalised. The sources claimed that the PML-N government has planned to double the existing number of tandoors so that maximum number of deserving persons could get benefit from 'Sasti Roti Scheme.'

It may be noted that the Punjab government at the behest of Chief Minister, Muhammad Shahbaz Sharif, has launched this scheme for destitute, which is first time in the country's history that is being implemented successfully. In this connection, tandoors of Sasti Roti are established in poor localities, katchi abadies, industrial areas, hospitals, railway stations and bus stands.

The sources further said the PML-N government attaches top priority to the provision of health, education and other basic facilities to the masses. The focus of the government policies is public welfare through provision of maximum relief to them, the sources added.


----------



## white_pawn

*Rs2 billion package for Thar coalfield ​*By Shamim-ur-Rahman 
Tuesday, 16 Jun, 2009 | 07:21 AM PST |

KARACHI: Consultants will be arriving shortly to prepare documents for international bidding for Thar Coal project under the World Banks technical assistance loan of $30 million.

This was stated by Sindh Chief Minister Syed Qaim Ali Shah while presenting the provincial budget for 2009-10 on Monday. He said that Rs2 billion package has been approved for development of infrastructure at Thar coalfield.

The development of Thar coal is being termed as strategic asset for Pakistans energy sector as it would be crucial in providing cheap source of generating electricity to meet the growing future demand.

If documentation process of bidding is completed on fast track one could see some progress on the coal-based energy generation projects. KESC chief had recently said that his utility was contemplating two small coal-based generation plants as part of developing a mixed energy basket.

Claiming that his government had been working on multi-track strategy to develop Thar coalfield, Mr Shah also claimed that a Thar Coal Infrastructure Package of Rs2 billion has been approved to begin work on infrastructure on fast track basis. In this context he said that the government was moving ahead on the construction of an airstrip at Islamkot.

China National Machinery Corporation (CMC) and Oracle Coalfield (UK) have completed their exploratory work in Sonda and Thar coalfields and they are expected to submit their reports soon.

Model quarries at Thar and Thatta would be set up in partnership with Pakistan Stone Development Company, he said.

Qaim Ali Shah said his government had covered strategic grounds on Thar Coal as Karachi was able to get Federal governments support in forming Thar Coal Energy Board (TCEB), which is a one-stop mechanism for improving all projects relating to Thar coal minining and energy under his chairmanship. 

According to Mr Shah Thar Coal Mining Company, which was created at the federal level during the previous government and had 80 per cent federal equity, was abolished at the request of the Sindh government. It thus signifies that henceforth the Sindh government will take major decisions on Thar coal.

The chief minister said that the TCEB has approved a joint venture of the government of Sindh with M/s Engro on Block II and both sides are working out JV arrangements for expeditiously developing mining project.

He also referred to the efforts being made to harness alternative energy sources like solar, wind and geo-thermal in collaboration with international and national companies.

In this context he said that installation of solar powered water pumping units and desalination plants in rural areas of Sindh is envisaged in the next financial years budget. It includes use of wind, solar and bio-gas energy for irrigation and agriculture purpose.

Rs900 million were provided to Sui Southern Gas Company and by now provision of gas to 71 villages was under progress, he said adding that for the next fiscal Rs1.1 billion has been allocated for its implementation.

Under Village Electrification Programme the government has provided Rs1 billion to Hesco. 

Rs3,271.853 million has been allocated in the provincial budget for 2009-10 for the ongoing and new energy sector schemes in the province.

Rs10 million has been earmarked for hydrological studies of over 22,000 sq km at Thar, whereas Rs20 million has been provided for the development of open cast mining at Thar. Rs100 million will be spent on resettlement and compensation for inhabitants of coal mine area.

Allocation of Rs110.550 million has been made for Thar Coal and Power technical assistance project of the World Bank.Islamkot airstrip would take Rs10 million for the first phase of the project, while Rs20.124 million has been allocated for environmental impact assessment of coal mining and coal-fired power generation. 

The new energy sector schemes would require Rs1,394 million during 2009-10. As such Rs1,000 million has been earmarked for village electrification programme (phase II) in the province, whereas Rs25 million has been allocated for installation of solar-powered water pumping units and desalination plants in the rural Sindh. 

Rs1,000 million has been allocated for the ongoing schemes in this regard.

An allocation of Rs69 million has been made for use of wind, solar, biogas energy for irrigation and agriculture projects during the next financial year. Rs200 million has been allocated for wind, and solar energy development in the province, while Rs100 million has been shown against a new scheme for the provision of gas to industrial economic zone, Dhabeji in district Thatta through public-private partnership.


----------



## white_pawn

*Tax-to-GDP ratio drops from 12 to 9pc ​*By Afshan Subohi 
Tuesday, 16 Jun, 2009 | 07:10 AM PST 

ISLAMABAD: The tax-to-GDP ratio has declined from 12 to 9 per cent in 2008-09 instead of improving over the years as the economy expands. 

This was stated by Shaukat Tarin, adviser to the prime minister on Finance at his post-budget press conference here on Sunday.

He asked parliamentarians and leaders of political parties to make their tax returns public, which would improve the public image of the MNAs and make the call of the government to file tax returns honestly more effective.

A key theme  that has repeatedly been hammered by the government  is the need to improve mobilisation of domestic resources. It intend to achieve the tax target through widening of tax-base and better management of tax administration to check leakages and plug holes in the tax net. Currently, tax-to-GDP ratio in Pakistan is worst in the region. 

An attempt has been made to bring in the documented service sector, banking, insurance, port handling and brokerage business in the tax net in the current budget to pull the tax-to-GDP ratio up from 9 to 9.5 per cent over the year ahead, the adviser explained.

We are committed to pull tax-to-GDP ratio to 15 per cent over the next three years by taxing untaxed sectors to minimise the dependence on external resources for the development of the country. 

Next year, we will bring in some more sectors in the net that enjoy tax holiday without any justification, he said.

Currently, industry that makes up for 24 per cent of the GDP generates over 70 per cent of tax revenues, the contribution of agriculture and service sector together add up to 74pc of the GDP but their contribution to tax revenues is next to nothing.

The industry has been crying hoarse for the injustice meted out to most productive sector. We have been made to pay for tax evaders and irresponsible segments. This is unfair and unjustified and should be corrected at the earliest, a business leader told Dawn criticising the government for letting the landed aristocracy be free riders.

People would be interested in knowing who pays how much to the national exchequer. The exercise can go a long way in improving the perception of parliamentarians in public eye who generally perceive them to be ambitious and irresponsible, said an expert.


----------



## white_pawn

*Rs 90 billion earmarked for ADP ​*MUHAMMAD ALI 
KARACHI (June 16 2009): On Monday in the provincial fiscal budget Sindh government has earmarked Rs 90 billion for Annual Development Programme (ADP) in the budget 2009-10, which is 34 percent higher than the revised development budget for outgoing fiscal year 2008-2009.

Out of total Rs 90 billion, the Sindh government would spend Rs 75 billion for the province while Rs 12 billion would be utilised for district governments'' development plan. The total size of the ADP would swell to Rs 113 billion after including Rs 16.6 billion federal PSDP grants and Rs 6.3 billion for foreign project assistance.

Chief Minister Syed Qaim Ali Shah has appraised the plan to meet the next provincial fiscal budget deficit, while presenting a budget for 2009-10 before the provincial assembly on Monday. He said the government would impose ban on wasteful expenditures including vehicles, ceilings, unnecessary foreign visits, etc to meet fiscal deficit budget for 2009-10.

The Sindh government has allocated Rs 15 billion to expand the Social Protection Programmes (SPP). It includes: Rs 2.5 billion for BBSYDP targeting around 75,000 youth for skill training in coming fiscal, strengthen and rehabilitate at least 30 to 40 technical and vocational institutions across the Sindh, grant of state land to around 5,000 landless Haris to serve some 0.1million population, expansion of UC based poverty reduction programme to other districts and the creation of around 20,000 new positions in education, and police departments in particular.

Rs 4 billion has been earmarked for Benazir Women Support Programme (BWSP), which would target 0.5 million women, to support incomes of the poor. While, around Rs 2 billion has been allocated for ''School Nutrition Programme'' to provide minimum nutrition to the children especially, poor.

The Sindh government has reserved Rs 24.2 billion for police for FY 2009-10, which is 11 percent higher than the last year. It adds provision of Rs 1.2 billion for vehicles, surveillance system, arms and ammunition.

In the health sector, the budget has been increased by 49 percent from Rs 3.5 billion to Rs 5.23 billion for 2009-2010. This amount would be spent to establish burns and thalessaemia centres and cardiac units in major hospitals besides strengthening the medical services across the Sindh.

In education sector, the government has allocated around Rs 6 billion, which is 27 percent higher as compared to the last fiscal year. The funds allocated under education budget will be used to finance free distribution of textbooks to over 4.3 million school children, Rs 1.25 billion for higher education, and Rs 2.5 billion for school rehabilitation programme.

The water and sanitation portfolio has been pitched at Rs 3.79 billion for 272 water supply and drainage schemes as against revised allocation of Rs 2.76 billion during 2008-2009. About 60 water supply schemes and 66 drainage schemes would be completed next year benefiting 0.277 million population with water supply facility and 0.216 million population with drainage facility.

The Sindh government has earmarked Rs 2 billion for Thar Coal Infrastructure Package particularly the establishment of model quarries at Thar and Thatta and the construction of Airstrip at Islamkot.

The provincial ADP allocated Rs 1 billion for village electrification and Rs 900 million for the provision of Sui gas to villages. The allocation for agriculture has been raised by 89 percent from Rs 2.3 billion last year to Rs 4.8 billion for FY 2009-10 to boost the productivity and to better the incomes of farm.

The government has allocated Rs 3.2 billion in 2009-10 for Livestock and Fisheries sector, which is 36 percent higher as compared to the last fiscal year allocation of Rs 2.4 billion, Rs 900 million would be spent to establish Sindh Diary and Meat Development Company while remaining would be utilised in the development of Lady Livestock workers, rehabilitation of the demonstration of farms at Gharo, improving the environment conditions at Karachi Fish Harbor, etc.

The existing mega city development programme for Karachi is being taken-up and this would now specifically focus on the transport sector. Under this programme, the provincial government will go for mass transit means such as light rail that can provide solution to traffic congestion''s anticipated for the next few decades.

Therefore, the government has allocated Rs 200 million for mass transit system and Rs 1.02 billion for different road projects of Karachi. A development package of Rs 2 billion for various priority schemes for Karachi including components for Lyari, Malir Keamari and Rural Karachi has been provided, which also includes on-going and new schemes in water, sewerage and transport sectors.

The government would spend Rs 13.55 billion on development of road. Out of this amount, Rs 9.2 billion has been allocated for on-going schemes for attaining early completion. In terms of strategic arteries and bridges, the Khairpur-Larkana bridge over Indus will be undertaken by National Highway Authority (NHA) and another bridge on Indus from Sakrand to Amri has also been included in federal Public Sector Development Programme (PSDP).


----------



## Neo

*Punjab budget today: Rs eight billion being allocated for 'Sasti Roti Scheme' ​* 
LAHORE (June 16 2009): Pakistan Muslim League-Nawaz (PML-N) led Punjab government is all set to allocate an amount of Rs 8 billion in the budget 2009-10 for 'Sasti Roti Scheme.' Sources in the PML-N told Business Recorder that Chief Minister Muhammad Shahbaz Sharif has already asked the authorities concerned to take effective steps to streamline 'Sasti Roti Scheme' so that poor people may get benefit from it.

In this regard, 'mohallah' committees are being set up to ensure the implementation of scheme in an effective manner. Further, the government is also setting up mechanical tandoors in Lahore, Rawalpindi, Gujranwala and Faisalabad. It may be mentioned that 12, 000 tandoors are functioning at present in Punjab for supplying sasti Roti. The government intends to involve civil society, philanthropists, chambers of commerce and industry, teachers, retired government officers, social workers and public-spirited persons in this programme.

The second provincial budget of the PML-N led coalition government for the year 2009-2010 is being presented in the Punjab assembly on Tuesday (today) for which all the arrangements have been finalised. The sources claimed that the PML-N government has planned to double the existing number of tandoors so that maximum number of deserving persons could get benefit from 'Sasti Roti Scheme.'

It may be noted that the Punjab government at the behest of Chief Minister, Muhammad Shahbaz Sharif, has launched this scheme for destitute, which is first time in the country's history that is being implemented successfully. In this connection, tandoors of Sasti Roti are established in poor localities, katchi abadies, industrial areas, hospitals, railway stations and bus stands.

The sources further said the PML-N government attaches top priority to the provision of health, education and other basic facilities to the masses. The focus of the government policies is public welfare through provision of maximum relief to them, the sources added.


----------



## Neo

*Ministry to explore, develop new tourists destinations ​*
ISLAMABAD (June 16 2009): Minister for Tourism Maulana Atta-ur-Rehman said government would explore and develop new tourists destinations across the country including 4100-feet high Sheikh Badin mountain peak in D.I. Khan. Development of Sheikh Badin tourist resort would cost around Rs 460 million, the minister told APP on Monday.

Sheikh Badin is situated close to Paniyala, another fabulous site, which is generally described a 'Switzerland of D.I. Khan' owing to its scenic beauty, fresh water fountains, mango gardens, variety of date palms and mountains etc. Locals say the peak is named after Hazrat Sheikh Baha-ud-Din Zakriya, a legendary Sufi Saint, who came here, get himself isolated from rest of the world and carried out religious practices.

So far Sheikh Badin and Paniyala have been the centre of tourists mainly from adjoining districts. As the government plans to install a chair lift connecting Paniyala to Sheikh Badin as well as a road, hopes are high these enthralling destinations would come into national and international tourism limelight.

Meanwhile, the minister said he had also planned to introduce Medical Tourism in Pakistan that aimed at providing low cost, but state of the art medical facilities to the patients. "A simple surgery costs around Rs 80,00,000 to 90,00,000 in any foreign country, but in Pakistan it would be done around Rs 5,00,000," said Maulana Atta.

He said Pakistan had highly qualified and very talented doctors, latest medical equipment and hospitals with all necessary arrangements. The minister was pinning high hopes on the success of Medical Tourism in Pakistan. "We are anticipating a great success in this particular field," he added. Maulana Atta said malicious propaganda hatched by western media to defame Islam and Pakistan was having adverse impacts on spectacular tourism industry of Pakistan.

"Negative propaganda churned out by western media has affected tourist arrivals to Pakistan," he said. Referring to Sri Lanka that had been experiencing bloodiest insurgency in the region for around three decades, but kept on attracting tourists simultaneously, the minister said tourism remained alive there as it was not targeted by the western media.

"We have certain areas with law and order situation, but Pakistan is a big country and there are lot of other tourist places like Kaghan Valley, Azad Kashmir, Murree and Galliat, Gilgit, Baltistan etc which are perfectly safe for foreign and Pakistani tourists," he added.

The minister said Islam is a religion of peace and Pakistani people are the most hospitable people in the world. "With a consistent and collective efforts, we have to spread this message of peace and hospitality throughout the world," he maintained.


----------



## Neo

*NESPAK executes 2,950 projects worth Rs6,260bn ​* 
Tuesday, June 16, 2009

LAHORE: NESPAK, a state organization of consulting and architectural engineers, since its establishment in 1973, has executed 2950 national development projects valued at Rs6260 billion in Pakistan and 34 other countries of the world.

Reviewing the activities and achievements at home and abroad, MD Asad I A Khan, said here on Monday that NESPAK is now working on 320 development projects in Pakistan and 72 foreign projects and extended architectural design and engineering services in the Middle East, Far East, Central Asia and Africa.

It is committed to provide multi-disciplinary engineering consultancy services with the highest level of professionalism and dedication, he added. The NESPAK chief said that, to a large extent, Pakistan has achieved self sufficiency and self-reliance in engineering consultancy, minimized dependence on foreign consultants, developed indigenous human resources and created employment opportunities within the country for a large number of Pakistani professionals in several engineering disciplines.

The organization which started its operations with only 35 personnel 36 years ago, today has on its payroll over 2050 highly qualified engineers, architects, planners and other technical experts including 250 MSc and PhDs from foreign universities of international repute and a support staff of 460 non-technical personnel. It has played a significant role in multifarious ways in the fields of architectural planning and engineering, he said.

It is now providing specialized engineering services in foreign countries in several disciplines of engineering including energy, water resources development, communication, architecture and planning, public health engineering, environment, earthquake reconstruction, IT, geographic information services and other infrastructure sectors, he said. It has also contributed towards foreign exchange for Pakistan, he added.


----------



## Neo

*Pakistan, Tajikistan to expand cooperation in energy, trade ​* 
Tuesday, June 16, 2009

YEKATERINBURG, Russia: Pakistan and Tajikistan on Monday vowed to expand cooperation in energy sector, besides widening ties in other areas of mutual interest.

President Asif Ali Zardari and his Tajik counterpart Emomali Rahman, who met here ahead of the Shanghai Cooperation Organisation summit, reviewed the relations between the two countries spanning over a decade and stressed the need to enhance them into more meaningful ties.

The two leaders discussed the regional situation, particularly the threat by extremists and terrorists and ways to counter it through increased cooperation. President Zardari apprised his Tajik counterpart about the ongoing fight in Pakistan for the elimination of terrorists from parts of the NWFP province and the success achieved in this regard. He said despite serious threats, Pakistan would pursue such elements till their elimination.

Tajik President appreciated Pakistan for bravely facing the challenges, despite serious threats. He said both countries can have increased cooperation to counter terrorism.The two leaders also focused on having greater cooperation in the energy sector. The two sides also agreed to cooperate in the field of explorations, extraction and processing of gas and oil products.

Pakistan expressed interest in benefitting from Tajikistans experience in hydropower potentials. President of Tajikistan said Pakistan can prove as a gateway of Central Asia for trade and commerce. He said this would also promote Pak-Tajik bilateral economic relations.

The two sides noted that both governments have exchanged high-levels of diplomatic and trade delegations. The leaders agreed to enhance the scope of around 20 agreements, protocols and memorandums of understanding (MoUs) signed between the two countries for cooperation in energy, communications, insurance, investments and industry, air transport, banking and finance, agricultural and food industry, transport and roads, science and technology, education, health, tourism, and culture.


----------



## Neo

*Gilani unveils water, power strategy ​* 
*Says IPPs would help address energy shortage in the short-term but the ministry must focus on developing indigenous energy resources​*
Wednesday, June 17, 2009

ISLAMABAD: Underlining the importance of uninterrupted, reliable and affordable water and power supplies to keep the economic wheel moving and making Pakistan socially just and economically strong, Prime Minister Syed Yousuf Raza Gilani on Tuesday spelled out a six-point water and power strategy. 

He hoped the strategy would go a long way in ensuring energy security which is imperative for securing the future of the country. The PM was chairing a specially convened meeting here at the Ministry of Water and Power on Tuesday, on matters relating to power sector generation and hydel projects development and operations. 

He said: Fast track IPPs, however, would help in addressing the energy shortage in the short-term but the ministry must focus on developing indigenous energy resources like coal, hydro and wind which the country has in abundance and if these resources are developed, this can secure cheap energy supplies forthe next 100 years. 

He said indigenous fuel-based power generation projects need to be fast-tracked to effectively confront the challenges of energy shortage. Lauding the crash programme in the power sector undertaken by the ministry of water and power to overcome the power deficit of 3,060MW, he expressed the hope that the ministry will fulfill its commitment to end load-shedding in the country by the end of 2009. 

He said institutional building is the key to achieve public policy goals and core institutions need to be made more strong, sustainable and financially viable while ensuring good governance of operational autonomy, transparency, openness, responsiveness, efficiency and professionalism. Gilani underlined that the key sectoral institutions should work in harmony and in close collaboration and appropriate arrangements should be put in place to get the objective. He said that elimination of wastage and inefficiencies within energy production and distribution system is must and the ministry should invest in system up-gradation to bring energy losses in line with internationally accepted levels by developing a viable investment plan. 

He emphasized the need to focus on promotion of energy conservation measures and called for the formulation of a realistic conservation plan in consultation with all the stakeholders to save 20-25pc energy thus saving foreign exchange which is being spent on account of imports. 

He said service providers need to be made more efficient in order to obtain commercial viability and reduce the present reliance on heavy subsidies which are directly and indirectly being paid by the tax-payers and the ministry should focus on this aspect as well. He said that transparency and merit should be the sole criteria and should be observed at all levels while making appointments. 

The prime minister said for meeting the future needs and avoiding water shortage, it is urgent to develop water resources. 

Though, this is not an easy task but our government is committed to getting this with success unlike the previous governments who failed to plan and successfully execute appropriate policies and projects to meet future needs of this nation, he added. 

He said: we cannot allow our future generations to die of thirst and hunger simply because we failed to develop our water potential. He directed the ministry of water and power to speed up its efforts to enhance public and private sector power generation to a maximum capacity for public relief and promotion of economic and commercial activity in the country. 

Minister for Water and Power Raja Pervaiz Ashraf briefed the premier on a crash programme for power generation to bridge the gap during calendar year 2009, promotion of regional electricity trade and renewable energy, and expansion in investment opportunities in hydro, coal and gas based power projects. Going by the schedule of thermal power projects to be completed during 2009, Pakistan would attain additional generation capacity of 3,060MW by December this year, he asserted.


----------



## Neo

*ADB board approves $3.4bn additional fund ​* 
Wednesday, June 17, 2009

ISLAMABAD: The Asian Development Bank (ADB) Board of Directors has approved allocation of $3.4 billion as additional fund to help developing member countries (DMCs) respond to the global economic crisis.

According to an announcement of the ADB here on Tuesday, it has established a $3 billion Countercyclical Support Facility (CSF) that will provide short-term, fast-disbursing loans. It will support DMCs aiming to ramp up fiscal spending to counter the crisis, but lack financial means to do so amid tight global credit conditions and a sharp increase in funding costs.

The CSF, which will be available to DMCs which qualify for loans from ADBs Ordinary Capital Resources (OCR), will be capped at $500 million per country.

The ADB will also make available a further $400 million to the Asian Development Fund (ADF). This will benefit countries with no access to OCR. ADF resources are provided in the form of concessional loans and grants to low-income DMCs with limited debt repayment capacity.

The additional ADF resources will be used to provide funds to finance key development investments in low-income countries that are among the most fiscally constrained in responding to the crisis.

Conditions for accessing the CSF include a significant slowdown in growth, exports and remittances; fiscal constraints; and difficulty in sourcing finance from international capital markets on favourable terms. DMCs will also need to put in place a specific countercyclical development programme, to be supported by CSF, which includes investment in public infrastructure or a social safety net scheme targeting the poor and vulnerable.

Loans under the new facility will have a five-year tenor, with a three-year grace period, and will cost around 200 basis points above ADBs financing cost, the pricing that is lower than its special programme loan facility set up to help the region in the wake of the 1997-98 Asian financial crisis.

The ADB plans to increase its lending assistance by more than $10 billion in 2009-2010, bringing total assistance for these two years to about $32 billion. This compares with about $22 billion in 2007-2008. Of the proposed $10 billion increase in lending, $1 billion is committed to supporting trade finance, $3 billion to the CSF and $6 billion to extending loans such as those for infrastructure investment.

The ADB will also expand its crisis-related support through grants for policy analysis and capacity building.


----------



## Neo

*65 ships arrive at Gadani for breaking ​* 
Wednesday, June 17, 2009

ISLAMABAD: At least 65 abandoned ships have arrived at the Gadani ship-breaking yard from various countries for scrapping while more are expected to reach shortly.

According to a senior official of the Customs Department, the ship-breaking industry will flourish once again in the country with the arrival of 65 abandoned ships and more which are expected to reach after a gap of two decades.

It will not only provide job opportunities to thousands of workers, but will also provide a boost to the steel industry as these 65 ships will produce around 500,000 tons of scrap for the steel industry in the country, he said.

Around Rs1000 million have, so far, been generated from customs duty and income tax through the import of abandoned ships, he said.

The ship-breaking industry was at its climax in the 70s when up to 150 ships had been brought to the Gadani ship-breaking yard, he noted. However, the industry lost its charm in the 90s when the rates of abandoned ships increased and duty was imposed on ship breaking.

This led to an increase in the smuggling of scrap from Iran and Afghanistan to Pakistan. The smuggling will now come to a halt after the revival of the local ship-breaking industry, he hoped.

The Balochistan government will also gain from more financial resources due to the boost in the ship-breaking industry at Gadani, he said.


----------



## Neo

*Punjab needs to grow by 7pc to meet challenges ​* 
Wednesday, June 17, 2009

LAHORE: As a result of past fertility trends, Punjab hit by demographic bulge has both opportunities and serious challenges which require the province to attain a sustained growth of 7 to 7.5 per cent a year.

The Punjab Resource Management Programme evaluated the growth rate with the assistance of Department of International Development (DFID)s Technical Management Agency. Based on this study, the Punjab government released an Economic Growth Strategy paper with budget documents. The chief minister has approved the strategy, which will enable the Punjab government to prioritise its reform initiatives.

According to the strategy, the boon that is offered to the province is the result of greatly increased production due to much larger number of people in the working age group. However, this demographic dividend will not come automatically, but will have to be earned by investing in human resource development, infrastructure, agriculture, manufacturing and other productive areas.

The paper points out that Punjab has a number of assets, the potential of which needs to be exploited fully. These include labour force, agriculture including horticulture, strategic location, a large SME sector and potential investment opportunities.

The paper recommends proper allocation of resources for education, health, infrastructure; investment in agriculture and creating an enabling environment for investment by improving domestic commerce and reducing the cost of doing business. This will enable the province to make the best of this demographic bulge.

The report says cropping pattern should reflect comparative advantage of the province and value added agricultural products should be encouraged. Efficiency of government machinery needs to be improved to provide better services. Public-private partnership should be encouraged and development portfolio of the province should be consolidated. Average growth rate in Punjab from 1990-2007 had been merely 5 per cent which needs to be improved.


----------



## Neo

*PEPCO to add 3,000MW to the system soon​*
ISLAMABAD: Pakistan Electric Power Company (PEPCO) was working round the clock to make all possible arrangements for injecting 3000 MW electricity in the distribution system soon. Official press release Tuesday revealed the government had fixed a target of 3,858 MW power generation during the year 2009-10. The increase in power generation includes 1381 MW of rental plants, 1949 MW of IPPs, 478 MW of hydropower and 50 MW of wind power from biomass to be added in PEPCO system. 

The government was facilitating private sector in setting up additional power plants on a fast track basis to cater for the power deficit. In this regard, 136 MW Bhiki power plant would be commissioned soon. The plant was the second fast track rental power plant in Pakistan. This $80 million plant contains three state of the art LM 6000 aero derivative turbines from (GE) General Electric to produce clean electricity efficiently. Through these concerted efforts, the consumers would be facilitated, not to face electricity shut downs.


----------



## Neo

*Govt plans to take GDP growth to 4.5 percent by 2011-12​*
ISLAMABAD: Federal government under Medium Term Budgetary Framework (MTBF) set up rolling economic targets for financial years 2009-10 to 2011-12 aiming at taking Gross Domestic product (GDP) growth target from 3.3 percent in 2009-10 to 4.5 percent by 2011-12.

According to the MTBF statement of Ministry of Finance prepared after consultation with economic ministries laid in parliament Tuesday.

The government has projected revenue deficit would be reduced by 0.8 percent of the GDP in 2009-10 would be converted in to surplus 0.4 percent of the GDP by 2010-11 and 1.3 percent of GDP in 2011-12. 

Size of the GDP is to be increased from Rs 13,095 billion in 2008-09 to Rs 14,824 billion in 2009-10 to Rs 16,435 billion in 2010-11 and Rs 18,205 billion by 2011-12. 

The inflation to be reduced from 21 percent in 2008-09 to 9.5 percent in 2009-10, further reduced to 7 percent by 20010-11 and it would be brought down to 6 percent by 2011-12.

Total revenues of that are expected to be 14.6 percent of the GDP in 2008-09 to come down to 14.5 percent of GDP in 2009-10, increase to 15.1 percent of GDP in 2010-11 and to 15.7 percent of GDP by 2011-12. 

Tax revenue to that stands at 10.5 percent of GDP in 2008-09 and would be increased to 11.1 percent in 2009-10, 11.8 percent of GDP in 2010-11 and 12.5 percent by 2011-12.

Federal Board of Revenues tax collection that stands at 9 percent of the GDP in outgoing fiscal year 2008-09 to be increased to 9.5 percent of the GDP by 2009-10, 10.3 percent of the GDP by 2010-11 and 11.1 percent of the GDP by 2011-12. 

Total expenditures that stand at 19.4 percent of the GDP in 2008-09 to be reduced to 19.1 percent by 2009-10 to increase to 19.5 percent of the GDP in 2010-11 and to be reduced to 18.8 percent by 2011-12. 

Current expenditures that at present estimated at 15.8 percent of the GDP in 2008-09 to decrease to 15.3 percent of GDP by 2009-10, 14.7 percent of the GDP by 2010-11 and 14.4 percent of GDP in 2011-12. 

Development Expenditures that are 2.8 percent of the GDP in 2008-09 to be increased to 3.8 percent of GDP in 2009-10, 47 percent of GDP in 2010-11 and than again decline to 4.5 percent of the GDP by 2011-12. 

Fiscal deficit that stands at 4.3 percent of the GDP in 2008-09 to shoot up to 4.9 percent in 2009-10 but would decline to 4.4 percent of GDP in 2010-11 and 3.2 percent of GDP in 2011-12. 

Revenue deficit and surplus that stands at deficit negative 1.2 percent of the GDP in 2008-09 to be decreased by 0.8 percent of the GDP in 2009-10, and than revenue surplus to be achieved in 2010.11 and revenue surplus to be increased to 1.2 percent of the GDP in 2011-12. Public debt to GDP ratio to that stands at 55.2 percent in 2008-09 to be reduced to 54.7 percent of GDP in 2009-10, 53.4 percent of GDP in 2010-11 and 51.8 percent in 2011-12.

Reactions: Like Like:
1


----------



## Neo

*Trade not aid, Zardari tells EU ​* 
BRUSSELS (June 17, 2009): The European Union pledged on Wednesday to give Islamabad millions of euros in humanitarian aid to help people displaced by fighting between Pakistan's army and the Taliban.

President Asif Ali Zardari, in Brussels for the first summit between the EU and Islamabad, said he was certain Pakistan would win the struggle against militancy with the help of the world but that it needed trade concessions more than aid.

The EU will provide 20 million euros ($27.72 million) to help people who have fled the fighting in the Swat valley and the EU's executive will ask member states to provide a further 45 million euros from a reserve fund, an EU official said.

"We stand by the people of Pakistan," EU External Affairs Commissioner Benita Ferrero-Waldner told reporters. 

But Zardari also called for trade concessions to boost Pakistan's economy, which some EU states are reluctant to agree to despite concern about the dangers to Europe posed by militants in Pakistan.

"What I need is trade not aid. I am looking for MOUs (memorandums of understanding), not IOUs, and I intend to get them," he said after a speech to NATO ambassadors in Brussels.

"I am an optimist at heart, not a pessimist, and I am always hopeful."

Zardari said the battle against Taliban militancy in Pakistan had only just begun but the army was determined and "defeat is not an option for us".

"I'm sure with the ... help of the world we will be able to fight the war and half the war is the minds of the people," he said.

The 27-country EU and the United States want better ties with nuclear-armed Pakistan because of concern about the spread of militancy there and fears that its nuclear weapons could fall into the hands of militants.

Zardari has played down concerns about Pakistan's nuclear arsenal falling into militant hands, saying officials from other governments were satisfied with the command and control system Pakistan has in place.

Draft conclusions prepared for the summit showed the EU would offer the possibility of a long-term free trade agreement (FTA), but no immediate trade incentives such as ending tariffs on goods imported from Pakistan such as clothes and bed linen.

"A number of nations such as Britain and Sweden want something now, rather than this long-term FTA which will take years to sort out," an EU diplomat said.

"Other countries, such as Italy and Spain, want to send a positive signal with this FTA, but secure in the knowledge that this will take so long to achieve there is no threat to their own industries in what is a time of economic crisis."

Annual trade between the EU and Pakistan is about 10 billion euros in imports and exports, a rise of about 10 percent since 2003.

Reactions: Like Like:
1


----------



## Neo

*Foreign investment declines by 47 percent in 11 months ​* 
KARACHI (June 17 2009): Net foreign investment has declined by 47 percent during the first 11 months of the current fiscal year mainly due to massive outflow of the portfolio investment and poor law and order situation. Net foreign investment comprising foreign direct investment (FDI) and portfolio investment is constantly on the decline due to worsening law and order situation, slow economic activities and global recession.

Net foreign investment has registered a decline of some 2.01 billion dollars during the first 11 months (July-May) of FY09. With current decline, overall net foreign investment has declined to 2.222 billion dollars during July-May of the current fiscal year as compared to 4.23 billion dollars in the same period of FY08.

Massive outflows of portfolio investment have major share in the overall decline in the net foreign investment, while slow privatisation process has also contributed to this trend in a negative way, as during the current fiscal year no new privatisation transaction could take effect.

FDI and portfolio investment have posted a decline of 19.8 percent and 1365 percent respectively during the first 11 months of current fiscal year. FDI reduced to 3.325 billion dollars in July-May of FY09 against 4.147 billion dollars in the corresponding period of FY08, depicting a decrease of 815 million dollars.

With a dip of 1365 percent, portfolio investment stood in a negative position of 1.103 billion dollars during the first 11 months of FY09 as compared to an investment of 87.2 million dollars in the same period of FY08. However, economists said that some 3.325 billion dollars foreign direct investment during the first 11 months is also an encouraging figure despite uncertainty in the country.

They said that FDI inflows are more than expectations, which is a positive sign and it means that foreign investors are still interested in investing in the Pakistan. Inclusive of privatisation proceeds, total private investment shows a decline of 34.20 percent to 2.764 billion dollars during July-May of FY09. Previously it stood at 4.2 billion dollars.

Reactions: Like Like:
1


----------



## Neo

*July-May current account deficit down 34 percent ​* 
KARACHI (June 17 2009): The country's current account deficit has reduced by 34 percent to 8.2 billion dollars during the first 11 months (July-May) of current fiscal year primarily driven by massive decline in trade and services deficit and rising trend in the remittances.

In addition, month on month basis current account balance posted a surplus of 406 million dollars during May 2009 as compared to some 538 million dollars deficit during April 2009. Current account balance was constantly presenting deficit since June 2007 largely contributed by high imports on the back of rising commodity prices on international front.

However, a major cut in imports, followed by slow trade activities and some positive steps taken by the State Bank improved the situation bringing current account balance in the surplus. The country faced a current account deficit of 8.222 billion dollars against during July-May of current fiscal year against the 12.485 billion dollars during the corresponding period of last fiscal year, depicting a decrease of some 4.263 billion dollars in first 11 months.

During May-2009 overall deficit of trade, services and income stood at 679 million dollars over the current account transfers of 1.089 billion dollar, showing a surplus of 406 million dollars in 11 months of FY09. This is the second month of current fiscal year, in which the country has posted a surplus balance.

Earlier, in February-2009 the country's current account balance witnessed a surplus of 146 million dollars as compared to some 279 million dollars deficit during January-2009. Economists have shown satisfaction over the depleting trend in current account deficit and said this would put more positive impact on the PKR and the country's economy, which was facing worrying situation for last one and half years.

"Surplus current account balance is a positive indication for the overall economy and we are expecting same trend in future," they added. They said that surplus balance would increase the liquidity in the domestic market, which will definitely raise pressure for cut in the policy rate.

The country's overall goods imports stood at 28.825 billion dollars and exports at 17.473 billion dollars registering a trade deficit of 11.352 billion dollars during first 11 months of current fiscal year. Trade deficit in 11 months is 16 percent lower than the same period of last fiscal year, when it stood at 13.543 billion dollars.

Services trade deficit stood at 2.982 billion dollars with 3.656 billion dollars exports and 6.638 billion dollars imports. Services sector exports have surged by 26 percent in July-May of 2009 as compared to corresponding period of last fiscal year.

Similarly, income deficit has witnessed a slight increase of 14 percent from 3.551 billion dollars to 4.054 billion dollars in July-May. The country's altogether income from abroad stood at 829 million dollars as compared to payments of 4.883 billion dollars in 11 months.

While, the overall deficit including trade, services and income stood at 18.388 billion dollars against the current account transfers of 10.269 billion dollars in July-May of FY09. Statistics show current account deficit without official transfers climbed to 8.381 billion dollars during the first 11 months of FY09 as compared to some 12.912 billion dollars during the same period of FY08.

Reactions: Like Like:
1


----------



## Neo

*560 megawatts Bin Qasim Power Plant: Chinese firm starts work on Rs 35 billion KESC project ​* 
KARACHI (June 17 2009): A Chinese firm has started the long-delayed work on 560 MW Bin Qasim Power Plant project of Karachi Electric Supply Company (KESC), which would cost the utility at least Rs 35 billion. According to sources at least four engineers of M/s Harbin of China had started initial works, like soil testing through land drilling, at the site for the last one week.

The samples of the soil at the location, where the power plants are planed to be installed, would be tested in labourites to ascertain feasibility of the location, they added. The works on the important project could not started due to the non-payment of the mobilisation charges by the public utility, since the contract for the dual-fired combined cycle plant at Bin Qasim was initially signed in June 2008 between KESC and M/s Harbin of China.

Al-Jomaiah, the previous management, the sources claimed, had vacated the site and road for the proposed power plant, and made the arrangements for accommodation of around 400 Chinese engineers and other staff but then no progress was made after change of the management.

In wake of the ongoing power crisis, whereas the citizens are facing hours' long power outages, this important should had to be executed very early, they said adding that if the undue delay and slow pace of work continued on the project the power crisis would further aggravate.

It is to be mentioned here that the World Bank had sanctioned at least Rs 27 billion which could not be released due to the lack of any development on project. The utility had also loaned Rs 8 billion from a local banking consortium last year as mobilisation charges for the project, which, the sources claimed, had been spent on the day to day expenditures.

However the company's Chief Executive Naveed Ismail in a recent interview with Business Recorder had claimed of releasing dvance payment of $56.6 million to the Chinese firm after bringing the original prices of the project down by $15 million. He further had said that the plant would be completed in four phases, with the first GT expected to be online within 24 months (May 2011), and the second and third GTs to be commissioned in June and July 2011 respectively.

Reactions: Like Like:
1


----------



## Neo

*Punjab develops its own economic growth strategy ​* 
LAHORE (June 17 2009): The Punjab Government has developed its own economic growth strategy to attain a sustained annual 7.75 percent growth rate. The growth strategy published with the budget documents here on Tuesday had been developed by Punjab Resource Management Programme with the assistance of Department for DFID TAMA in consultation with key secretaries and officers of Punjab government, members of civil society and academia.

The strategy had been approved by Chief Minister and will enable Punjab government to prioritise its reform initiatives. The strategy develops the argument that as a result of the past fertility trends, Punjab will be hit by a demographic bulge that could turn out to be a tremendous opportunity but may bring with it serious challenges.

However, the document warns that this "demographic dividend" will not come automatically, but will have to be earned by investing in human resource development, infrastructure, agriculture, manufacturing and other productive facilities.

It said in order to make best use of this demographic bulge, Punjab will have to attain a sustained growth rate of 7-7.5 per cent a year whereas, Punjab has shown an average growth rate of 5 per cent from 1992 to 2007.

It said Punjab had a number of assets, potential of which needs to be exploited fully. These include labour force, agriculture including horticulture, strategic location, large SME sector and potential investment opportunities. The strategy proposes the following:

Proper allocation of resources on education, health, infrastructure, investment in agriculture and creating an enabling environment for investment by improving domestic commerce and reducing cost of doing business will enable Punjab make the best of this demographic bulge. Cropping pattern should reflect the comparative advantage of the province and value added agri-products should be encouraged.

Efficiency of government machinery needs to be improved to provide better service delivery. Public Private Partnership should be encouraged and development portfolio of the province should be consolidated.

Reactions: Like Like:
1


----------



## Neo

*Rs 23.125 billion allocated for education sector ​* 
LAHORE (June 17 2009): The Punjab government has allocated an amount of Rs 23.125 billion for the education sector in the budget for the year 2009-10, against an allocation of Rs 30 billion in 2008-09. According to the budget document, Rs 26.125 billion of Daanish Schools Programme, if included in the budgetary allocations for education sector, total allocation is 35.55 percent more than the revised allocation of Rs 19.274 billion for FY 2008-09.

The provincial government has allocated Rs 2,300 million for Technical and Vocational Training which is at par with last year's original allocation but Rs 803 million more than the revised allocation. The allocation will be utilised for the diagnostic scoping study for skill mapping and job market requirements and establishment of skilled labour market placement/information system.

The funds will be used for the provision of missing facilities to existing institutions and upgrading of training equipment and labs for imparting modern skills. Six additional technical and vocational training institutes will be established in tehsils and backward areas. About 30 additional vocational institutions will also be established and 5 additional polytechnic institutes will also be set up. About 41 existing institution will be revamped and focus should be on increasing the female access to technical education and focus should be on the third party evaluation of training programs to assess quality and relevance.

The reforms and initiatives in school education include the starting of the second phase of Punjab Education Sector Reforms Programme-11 (PESRP) with the total financing of US $30 million. On successful completion of PESRP-1, World Bank and Government of the Punjab have agreed to a second phase of education sector reforms with a total financing of US $350 million.

The programme is primarily geared to address the quality, access and governance issues. Main interventions will include establishment/up gradation of primary, middle and high schools (Rs 3,500 million), provision of missing facilities (Rs 4,000 million) and Accelerated Programme for School Education (Rs 700 million). In addition, sufficient provisions have been made to strengthen the examination systems, teacher's recruitment/training, strengthening district level management and improving governance through empowered Schools Councils (Rs 438 million).

Other reforms in school reforms include Punjab IT Labs Project, which was started in previous year with some initial spadework, this ambitious project covering 4,286 high/higher secondary schools across Punjab, would be completed in 2009-10 with an allocation of Rs 2929 million.

This would be the most significant step towards bridging the information and technology divide between public sector and high-end private sector education. There would be provision of equipment for Vocational Education Project. This initiative will cost Rs 578 million would provide life skills and employability to the high school students. There will be a grant of Rs 4,000.000 million for Punjab Education Foundation.

Reforms in college education include Rs 200 million for the establishment and upgradation of colleges. An amount of Rs 800 million has been allocated to complete the ongoing programme for provision of missing facilities in colleges including labs, auditoriums, sports facilities, hostels and external development. The government has allocated Rs 400 million have been provided to improve teaching skills of the college teachers.

Government has allocated RS 100 million for the special education which includes initiatives such as establishment of International Standard Rehabilitation Center for the disabled, provision of educational opportunities and facilities to school-going disabled children (15 District Centers for Special Education), provision of healthy atmosphere to special children in the Institutions/Centres of Special Education by constructing new, and improving existing, buildings with special facilities; Skill development & rehabilitation of physically challenged children and incentives for enrolment (nutrition, stipends, free uniform, free boarding & lodging facilities, free text & Braille books, free pick & drop facility, Merit scholarships.

Eradication of illiteracy is critical for achievement of Millennium Development Goal targets. To provide yet another opportunity to return to education to an estimated 38 million illiterate/out of school population, an amount of Rs 800 million has been earmarked for 2009-2010.

The main initiatives for the eradication of illiteracy include initiatives includes literacy & livelihood programme for poverty alleviation in 4 model districts of Punjab, Demand Based Training for new literates to impart education, training and skills that can lead to economic amelioration, enhance consumable income and help alleviate poverty.

The funds will used for the establishment of 300 Adult Literacy Centres & 200 NFBE Schools in jails, factories and brick kilns under a five-year programme for imparting education and skill development for their rehabilitation and providing honourable economic opportunities to prisoners in 29 jails of the province, more than 5000 brick kiln workers and other illiterates working in factories. Funds will also be used for establishing 300 Community Learning Centers project in the province.

Reactions: Like Like:
1


----------



## Neo

*Security, energy and economy: Zardari for special SCO mechanisms for Pakistan ​*
YEKATERINBURG (June 17 2009): President Asif Ali Zardari on Tuesday stressed the need for addressing the transnational challenges of terrorism and narcotics, and proposed creation of special mechanisms for Pakistan's involvement in three key areas of SCO's activity, including security, energy and economic co-operation.

Addressing the 9th Shanghai Co-operation Organisation Summit in this Russian city, the Pakistan President stressed the need for a common framework to ensure co-operation in security, energy and economy, and said that the SCO needed to develop a vision of regional prosperity and security.

The Summit was attended by the heads of governments and states of SCO member countries--Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan and Uzbekistan--while Pakistan, Mongolia, India, and Iran attended as observers. Zardari deliberated upon important issues including tackling the international financial crisis and expanding regional co-operation in political, economic, and security matters.

He said that at the SCO platform, the countries were meeting at a moment of remarkable change and challenge. "Tectonic shifts of great consequence are reshaping the global geo-strategic and geo-economic landscapes," he said, adding that it was forcing upon every country fresh agendas to confront and conquer new challenges. About SCO, he said that it was a blend of East and the West, and its combined resource base, geographic expanse, and demographic strength were second to none.

"Pakistan remains committed to deepening and strengthening our bonds of friendship and co-operation with each SCO member state, bilaterally and in the SCO framework," he said. He said that Pakistan stood firmly to help SCO and the SCO community of nations to realise their common objectives and fulfil their common destiny.

He expressed Pakistan's desire to become a full member of the SCO to play its role in a positive manner, and appreciated the recent steps to afford the observers greater access to SCO meetings. The President proposed that special mechanisms be created for Pakistan's involvement in three key areas of SCO's activity, mainly security, energy and economic co-operation.

He stressed Pakistan's need for mechanism on security to meet the threat of terrorism, narcotics and organised crime, besides mechanism on energy for exploiting complementarities among energy-surplus and energy-deficit countries of the region. He said the mechanism on economic co-operation would help Pakistan build trade and communication corridors within the region.

He said that SCO represents half of humanity and unmatched potential, and added that Pakistan admires SCO's adherence to the principles of equality, non-interference and respect for diversity. He appreciated the organisation's spirit of reaching out for common good and common benefit.

President Zardari said it was time to get painfully aware of the wrongs of the past few decades and take lessons from the textbook of history and turn a new page. He said that for over 30 years, Afghanistan has remained mired in conflict as prolonged international neglect and pervasive poverty had stoked the fires of terrorism and extremism.

He said that no country had suffered more from the fallout of this conflict than Pakistan, and no country stood to gain more from peace and stability than Pakistan. He pointed that for eight years, the global community had fought, in Afghanistan, the symptom but not the disease. Zardari said the region's crises were systemic, including the economies reeling under a world-wide recession.

He stressed that the quest for finding comprehensive solutions to such problems needed courage and leadership, vision and unity. "It [SCO] must apply indigenous solutions to indigenous problems, and find effective ways to rally the region's resources to the region's needs," he said. The President said that resource deficits have to be addressed through greater trade and commercial partnerships.

Reactions: Like Like:
1


----------



## Neo

*'Special Economic Zones' to be set up to attract investment: minister ​* 
ISLAMABAD (June 17 2009): The government is planning to establish 'Special Economic Zones' to attract investment for speeding up the process of industrial revival. This was stated by Saleem Mandviwalla, Minister of State for Investment, while addressing the business community at Islamabad Chamber of Commerce & Industry (ICCI) here on Tuesday.

He said that these Zones would enjoy 10 years' tax holiday, and would be provided all required facilities along with installation of captive power plants to ensure consistent power supply to run the industry without hindrance. He invited the business community to take advantage of these 'Zones' providing handsome incentives.

He said the Board of Investment was being made a true autonomous body, and majority of its members would be taken from the private sector to further enhance the role of private sector in decision making for promotion of national economy. He said that CDA would be asked to speed up the process of establishing new industrial estate in I-17 Sector of Islamabad.

Saleem said that the government was working on different projects to overcome energy shortage to facilitate the growth of trade and industry and attracting more investment. He said that construction of big and small dams, installation of rental power plants on immediate basis, and signing of agreement with Iran for supply of gas were part of such projects to cope with energy shortage issue.

He said that the government was fully aware of the bureaucratic approach of the Commercial Counsellors abroad, and was working on a mechanism to have these Counsellors from private sector so that they could better promote the country's trade and exports.

He said that the government has focused on reviving and stimulating the economy by encouraging public-private partnership, and asked the businessmen to come forward to play their due role. He said that the budget had been announced and business community should forward with their suggestions for incorporating in the final budget document.

Shaukat Masud, President of Islamabad Chamber of Commerce & Industry, highlighted the problems being faced by the business community. He said that businessmen had forwarded many budget proposals to make it business-friendly, but unfortunately their proposals were ignored. He said the present budget was focused more on revenue generation, and that too from the existing taxpayers, instead of bringing untaxed sectors into the tax net.

He said that the year 2009-10 was declared as 'Year of Industrial Revival', but no worthwhile relief measures were announced in the budge for reviving the industry. He said that improving law & order situation, reducing mark-up rates to single digit level, providing non-stop supply of energy, introducing business-friendly tax culture, and developing healthy relations between businessmen and the tax machinery were the essential conditions for restoring confidence of local and foreign investors, reviving industry and attracting investment. He said that unless these things were assured, economy would not witness any turnaround.

Reactions: Like Like:
1


----------



## Omar1984

Work on feasibility of Iran-Pakistan gas pipeline project launched 


ISLAMABAD: Work on feasibility of Iran-Pakistan gas pipeline project has been launched and it will be completed by the middle of next year. 

Petroleum ministry sources told Online Tuesday work had been started to give final shape to drafts on Iran-Pakistan gas pipeline project under which a frame work agreement between the two countries had been signed. Work on feasibility of project has also been undertaken. 

Following the approval of feasibility, the process will soon be begun to raise funds through different banks at country level and investment institution to initiate the gas pipeline project. The work for laying pipeline will start by the end of next year if fund collection process concludes. 

Sources told Iran had finalized 50 percent work on the project and Pakistan will start the work of laying gas pipeline by the end of next year which is likely to be completed by the end of 2013. Gas pipeline will be extended from Pak-Iran borders at Gwadar to Nawabshah. Besides Inter State Gas Sales Limited, Sui Sidran and Sui Northern are also share holders in the project. 

In line with gas sale-purchase accord between the two countries, Iran will provide 750 million cubic feet natural gas to Pakistan on daily basis. Gas will be provided by Iran at the rate equivalent to 78 percent of the prices in international market at the time of completion of the project. 

Sources informed the preliminary overall cost of the project was estimated at $ 7.5 billions under which the work was to be started in the current year of 2009 and was to be completed by September, 2012. 

The project has been delayed by one year due to lack of sincerity shown by India in the project. Despite it, India can join the project as third partner at any stage.


ONLINE - International News Network

Reactions: Like Like:
1


----------



## Neo

*Business community rejects Budget 2009-10​*
*Says it is anti-business, trade & industry, full of anomalies​*
Thursday, June 18, 2009
By Salman Siddiqui

KARACHI: The entire business community of the country has unanimously rejected the federal budget for the next fiscal year of 2009-10 and said it was anti-business, trade & industry, full of anomalies and would empower the corrupt elements in tax departments.

At a press conference held at the Karachi Chamber of Commerce & Industry (KCCI) on Wednesday the leadership of the Chamber has given a 48-hours deadline to the Advisor to PM on Finance Shaukat Tarin to come to Karachi and hold meeting with business community aiming at removing the underlined anomalies.

The raised concerns should be addressed before the formal approval of the proposed budget in the national assembly likely on June 26, demanded the leader of Businessman Group, Siraj Kassam Teli.

Pakistan Bedwear Exporters Association (PBEA), Chairman, Shabbir Ahmed appealed to the Members of National Assembly (MNAs) not to pass the proposed budget before it was rectified, while KCCI President Anjum Nisar seconded the appeal on behalf of the entire business community of the country.

Textile industrialist S M Obaid and Rafiq Habib Godil, Chairman, Pakistan Knitwear & Sweaters Exporters Association (PKSEA), threatened to relocate their textile units to Bangladesh, if anomalies in budget were not removed in the given time. They recorded their statements at another press conference held on the issue of budget anomalies by the Council of All Textile Associations (CAPTA) at PHMA office under the chairmanship of Zubair Motiwala, who is also Advisor to Chief Minister Sindh on Investment.

Underlining the anomalies, Former President-KCCI Haroon Farooqi said that there used to be only one tax commission to deal with the pertaining issues, but from next fiscal year there would be four tax commissions under different heads.

Moreover, government has conferred discretionary powers to these commissioners and other officials in the taxation department. This is said in the proposed finance bill that any of the tax commissioners can appoint an auditor and deploy him at any department of the industry for any purpose.

Therefore, the giving of these discretionary power to them and increase in number of commissioners are meant to harass the business community and would empower the elements of corruption in the system, he reiterated.

Moreover, the condition of selling goods to only those buyers who either provide their NTN numbers or CNIN numbers is also not practically viable, highlighted many participants of the meetings held at KCCI and PHMA.

Hundred per cent increase in Withholding Tax (form two per cent to four per cent) on import of raw material would prove fatal for many industries in the provided environment for doing business here. Moreover, the withdrawal of subsidies from electricity and gas would automatically raise the cost of doing business here, while shortfall in generation of electricity was rising on every passing day too.

Businessmen also criticised the proposed imposition of five per cent carbon-tax on carbon-less fuel i.e. Compressed Natural Gas (GAS), which was known as green fuel at world because of its environment friendly nature.

The government has set a growth target of 1.8 per cent for Large Scale Manufacturing (LSM) sector for the next fiscal year. But to achieve this target, the LSM will have to grow by 9.5 per cent next year, as this government-neglected major sector is measured to post a decline of 7.7 per cent at the end of current fiscal year, calculated Motiwala.

They asked as why the government failed to tax landlords in agriculture sector, who made massive transactions on the sale & purchase of orchards and explained themselves that as assemblies are represented by 70-80 per cent feudal lords. They felt that they should also do lobbying in assemblies to get their issues resolve.

The government has declared the next fiscal year, which is round the corner to being, as the year of industrial revival in the country, but each angry businessman declared this governments slogan as a joke with the industry.

Nisar said the KCCI was backed by 18 other chambers of the country to resolve this anomalies issue with the government. These chambers were included of Rawalpindi, Islamabad, Lahore, Faisalabad, Sarhad, Sargodha, Shakupura, Sialkot and others.

During the press conference, president of many chambers were taken on telephone and everyone of them rejected the budget while couple of them said they would not forward budget proposals to the government from next year, as their proposals are not due considerations.


----------



## Neo

*Pakistan, China to intensify cooperation in telecom, water​*
Thursday, June 18, 2009

BEIJING: Pakistan and China will intensify their cooperation in the fields of telecommunications, sugarcane production, housing and management of water resources.

Discussions took place with the Chinese government and top Chinese corporations in these vital areas, during Secretary General to the President, Salman Faruquis, visit to China.

The secretary general is leading a high level delegation, which includes Ambassador-at-Large/Federal Minister, Khalil Ahmed, Advisor to the Prime Minister on Water Resources, Kamal Majidulla, Secretary Economic Affairs Division, Farrakh Qayyum, and Chairman Water and Power Development Authority, Shakil Durrani.

Faruqui started his visit in Shenzhen, Chinas busting industrial town opposite Hong Kong, and visited Chinas telecom giants Huawei and ZTE which have their representative offices in Pakistan.

The secretary general invited the leadership of the two Chinese telecom conglomerates to establish manufacturing facilities and to open a telecommunications university in Pakistan in partnership with the Government of Pakistan. Corporate leaders of the two companies said that they would initiate work on these projects.

In Shenzhen, Faruqui witnessed the signing of a landmark Memorandum of Understanding (MoU) between Pakistan Agricultural Research Council and Guangzhou Sugarcane Research Institute. From Pakistan, the agreement was signed by Kamal Majidulla.

The MoU facilitates the development of various kinds of sugarcane varieties in Pakistan through the use of germplasm technology. It would also help in producing sugarcane varieties that require less water irrigation and disease control, as well as being pest and drought resistant.

In Shanghai, Faruqui saw the city planning exhibition and explored the possibility of cooperation in building low cost houses and apartments in Pakistan.

WAPDA chairman held meetings with Zhejiang Zhengbang Hydro Electric Power Construction Corporation and China Electric Power Generation Group and invited them to invest in twelve small and medium sized hydropower dams in Pakistan. Both companies expressed keen interest in the projects.


----------



## Neo

* Diamer-Basha dam to bring green revolution​*
Thursday, June 18, 2009

ISLAMABAD: Federal Minister for Water and Power, Raja Pervez Ashraf said that the construction of Diamer-Bhasha dam would be started this year as Rs8000 million have already been allocated for the project in the recently announced federal budget.

Talking to media persons here on Wednesday, the minister said that the construction of this dam would ensure green revolution in the country by producing power generation of 4500 MW, as well as water storage of 6.4 MAF, which would contribute towards meeting the demand of electricity and water for the irrigation of thousands of acres of land in the country per annum.

The minister said that the construction of the dam would begin by the end of this year in either September or October, according to the scheduled finalised for the project.

WAPDA authorities have already been directed to follow the schedule to ensure that the given time frame for the completion of the mega project is met, Ashraf said. WAPDA authorities are working to complete the resettlement plan for the affectees of the dam site belonging to the Northern areas and NWFP, he said.

The minister said that the generation of 4,500 MW of inexpensive hydel power from Diamer-Bhasha dam would reduce dependence on thermal power, resulting in savings of huge foreign exchange and making available 6.4 MAF of water for irrigation.

He said that the project would also create massive infrastructure and job opportunities leading to an overall socio-economic boost for the area.

Responding to a question about land acquisition and resettlement of the dam site affectees, the minister said that ECNEC had already approved the project for land acquisition and resettlement of the dam at a cost of about Rs60 billion.

It may be mentioned here that the Diamer-Basha dam is being built at Indus River near the Chilas area in the North, partly stretching across the Kohistan district of NWFP.

According to the project, construction will begin in September this year and will be completed within sevens year. It will be the highest roller compacted concrete dam in the world, at a height of 272 meters.


----------



## Neo

* Pak-BD trade growing at 10pc per annum​*
Thursday, June 18, 2009

KARACHI: Bilateral trade between Pakistan and Bangladesh was growing at a rate of 10 per cent per annum and is expected to cross $460 million this fiscal year.

This was stated by Deputy High Commissioner Bangladesh, Saquib Ali, while addressing members of Rice Exporters Association of Pakistan (REAP) at a luncheon meeting here on Wednesday.

He said that trade volume between the two countries has surged from $320 million in 2006-07 to $412 million in 2007-08 with the balance of trade in Pakistans favour. He noted that cotton was the largest item of the total Bangladeshi imports from Pakistan.

He underlined the need for exchange of trade delegations between the two countries. We need to shift from government-to-government contact to private sector contacts if we really want to boost the bilateral trade, he noted.

Ali pointed out that Bangladesh produces nearly 28 million tons of coarse rice every year which is 100 per cent of its total requirements. He, however, mentioned that his country would need a buffer stock of about 1.6 million tons of rice to meet any eventuality in the future.

Consul General of Sri Lanka V S Sidhat Kumar emphasised on creating awareness among the business community about the free trade agreement between Pakistan and Sri Lanka to increase bilateral trade. He suggested that REAP submit a proposal for increasing rice quota under FTA from the current 6000 metric tons to 15000 MT in the next meeting between the trade officials of Pakistan and Sri Lanka.

He said that Sri Lanka was producing 2.6 million tons of coarse rice, which meets 95 per cent of domestic requirements.

Kumar said that Sri Lanka imports about 8400 MT of basmati rice to meet the demand for high quality rice in the country.

To a question, he said Sri Lankan trade with other countries including Pakistan will grow after the elimination of Tamil Tigers.


----------



## Neo

*Gwadar to be linked through rail, road networks: PM​*
ISLAMABAD: The government plans to link the Gwadar seaport with the rest of the country through rail and road networks, Prime Minister Yousaf Raza Gilani said on Wednesday.

Responding to a suggestion of Pakistan Muslim League-Quaid (PML-Q) parliamentarian Ghous Buksh Mehar during the debate on the 2009-10 budget in the National Assembly, he said the government would develop the infrastructure in Balochistan and link Gwadar to other parts of the country. He said the Gwadar port was being used to import wheat and fertilizer, adding it would be transformed into a business and economic hub that would generate employment opportunities for the local population.

Mehar had suggested the government take steps to develop the agriculture sector and ensure the provision of agricultural inputs on cheap rates. He asked the government to provide at least 500 bulldozers to Sindh province to increase agricultural yield through land leveling. He also suggested the Gwadar port be linked to the main railway network.


----------



## Neo

*President Zardari seeks trade, not aid: EU offers $90m aid, but no trade​*
** EU to provide 20 million euros to help IDPs
* EU executive to ask member states to provide additional 45 million euros 
* EU, Pakistan reaffirm commitment to cooperate in terror fight​*
BRUSSELS: The European Union pledged aid on Wednesday to internally displaced Pakistanis from Swat, but denied Islamabad the trade breaks it says will help win the struggle.

At the first EU-Pakistan summit, the European Commission said it would provide 20 million euros ($27.72 million) to help people from the Swat valley, and would ask EU states to provide a further 45 million euros ($62.37 million) from a reserve fund.

But a push by some EU states to offer Pakistan significant trade concessions was blocked by others concerned about the effect on their domestic industries.

A joint EU-Pakistan statement showed that while the EU offered the prospect of a long-term free-trade agreement, there would be no immediate trade incentives such as eliminating tariffs on Pakistani imports.

I am looking for memorandums of understanding, not IOUs, and I intend to get them, said President Asif Ali Zardari ahead of the meeting, adding that trade concessions were more important than aid. But he said later he was pleased with the support Pakistan was getting from Europe and elsewhere.

European Commission President Jose Manuel Barroso said Islamabad needed measures to diversify exports and attract investment, and Brussels would be very pragmatic in looking at options, including preferential access schemes.

We are ready to work with Pakistani authorities to find some concrete ways ... to achieve greater access to our market, he told the news conference. But he stressed that some steps needed backing of all members of the World Trade Organisation, which did not seem likely.

The joint statement also said the EU would step up relations with Pakistan in development, education, security, counter-terrorism, trade and other areas.

The EU will also provide Pakistan counter-terrorism help by sharing expertise in law enforcement and criminal justice. The joint statement stressed the need to improve the capabilities of Pakistani police.

Pakistan and the EU also agreed to start a regular Pakistan-EU Counter-Terrorism dialogue.


----------



## Neo

*EU pledges aid, Pakistan seeks trade concessions​*
BRUSSELS (June 18 2009): The European Union pledged on Wednesday to give Islamabad millions of euros in humanitarian aid to help people displaced by fighting between Pakistan's army and the Taliban. President Asif Ali Zardari, in Brussels for the first summit between the EU and Islamabad, said he was certain Pakistan would win the struggle against Islamist militancy with the help of the world but that it needed trade concessions more than aid.

The EU will provide 20 million euros ($27.72 million) to help people who have fled the fighting in the Swat valley and the EU's executive will ask member states to provide a further 45 million euros from a reserve fund, an EU official said.

"We stand by the people of Pakistan," EU External Affairs Commissioner Benita Ferrero-Waldner told reporters. But Zardari also called for trade concessions to boost Pakistan's economy, which some EU states are reluctant to agree to despite concern about the dangers to Europe posed by militants in Pakistan.

"What I need is trade not aid. I am looking for MOUs (memorandums of understanding), not IOUs, and I intend to get them," he said after a speech to Nato ambassadors in Brussels. "I am an optimist at heart, not a pessimist, and I am always hopeful." Zardari said the battle against Taliban militancy in Pakistan had only just begun but the army was determined and "defeat is not an option for us".

"I'm sure with the ... help of the world we will be able to fight the war and half the war is the minds of the people," he said. The 27-country EU and the United States want better ties with nuclear-armed Pakistan because of concern about the spread of Islamic militancy there and fears that its nuclear weapons could fall into the hands of militants.

Zardari has played down concerns about Pakistan's nuclear arsenal falling into militant hands, saying officials from other governments were satisfied with the command and control system Pakistan has in place. Draft conclusions prepared for the summit showed the EU would offer the possibility of a long-term free trade agreement (FTA), but no immediate trade incentives such as ending tariffs on goods imported from Pakistan such as clothes and bed linen.

"A number of nations such as Britain and Sweden want something now, rather than this long-term FTA which will take years to sort out," an EU diplomat said. "Other countries, such as Italy and Spain, want to send a positive signal with this FTA, but secure in the knowledge that this will take so long to achieve there is no threat to their own industries in what is a time of economic crisis." Annual trade between the EU and Pakistan is about 10 billion euros in imports and exports, a rise of about 10 percent since 2003.


----------



## Neo

*Services sector posts $3 billion deficit in 11 months​* 
KARACHI (June 18 2009): The country has registered a deficit of some three billion dollars in services sector trade during the first 11 months (July-May) of the current fiscal year mainly due to high payments on account of transportation, travel and government services. However, the deficit is about 51 percent lower than the same period of last fiscal year ie 2008, in which services sector posted over six billion dollars deficit.

Month on month basis, services sector trade has posted a surplus of 253 million dollars in May 2009, as services sector exports are higher than the imports. Services sector exports stood at 740 million dollars in May 2009 against imports of 487 million dollars. The country posted a deficit of 269 million dollars in April 2009 with 559 million dollars imports and 290 million dollars exports.

The State Bank on Wednesday said the country's services sector trade performance is gradually improving as overall imports and deficit have declined by 5.73 percent and 26 percent respectively during July-May period. Services sector exports in first 11 months stood at 3.656 billion dollars against the imports of 6.638 billion dollars, depicting a deficit of 2.982 billion dollars during July-May.

Services sector deficit is 3.071 billion dollars lower than the deficit witnessed in corresponding period of last fiscal year ie 2008. Services sector deficit in July-May of 2008 stood at 6.053 billion dollars. "Heavy payments on account of transportation, travel services, insurance, technical fee, royalties and government sector are major contributors in the services trade deficit," economists said.

They said that declining imports of services sector and increasing trend in exports is a positive sign, which would definitely help reduce services sector deficit. Export of services sector surged by 26 percent to 3.656 billion dollars during the first 11 months of FY09 over the exports of 2.909 billion dollars in same period of last fiscal year. Services sector imports reduced by 25 percent to 6.638 billion dollars in July-November of FY09 as compared to imports of 8.962 billion dollars in corresponding period of FY08.

The country earned 1.107 billion dollars on account of transportation against payments of 3.211 billion dollars, depicting a deficit of 2.104 billion dollars in first 11 months of FY09. Transportation deficit has contributed some over 70 percent share in overall services sectors deficit, as the country has only one shipping carrier - Pakistan National Shipping Corporation.


----------



## Neo

*Pak, China sign loan agreement for $300 million​*
ISLAMABAD (June 18, 2009): The Government of Pakistan has signed an MoU, with the Government of China on Thursday to reconstruct and rehabilitate three major cities of AJK destroyed in the 2005 earthquake, under AJK Urban Development Programme. The umbrella contract for this project has already been signed between ERRA and the Two Chinese Construction Companies.

In order to assist the Government of Pakistan to complete the development work in the earthquake affected areas of Muzaffarabad, Bagh and Rawalakot, the Government of China offered credit worth US$ 300 million, whereas the Government of Pakistan contributed additional US$ 53 million to complete various reconstruction projects under AJK Urban Development Project.

For smooth and effective implementation of MCDP, a Steering Committee has been constituted under the Deputy Chairman ERRA Lt. Gen Sajjad Akram, which has the mandate to give policy direction for Project Implementation and ensure timely and effective coordination of all inputs.

The contract signing is in line with ERRAs Mission of Build Back Better.

The AJK Urban Development Programme aimed at providing safe housing, improved city environment, modern physical and social infrastructures with the target to boost economic and social growth in the Earthquake affected areas.

For Muzaffarabad City, an amount of US$ 190.62 million has been allocated for completion of 90 projects.

In Bagh 50 projects worth $ 123.55 million and in Rawalakot city, 30 projects with a cost of US$ 38.83 million will be completed in the next 4 and half years.

These projects will provide all modern day facilities including construction of Government buildings, roads bridges, shopping centers, Satellite towns, play grounds, parks, education and health facilities, wholesale markets, slaughterhouses, transport terminals, neighborhood centers, designing and Laying of infrastructure facilities like water supply, sewerage, underground electricity and telecom cables. These facilities will be developed by Chinese Companies.


----------



## muse

Ideology over Experience, Again!



*Another missed opportunity *
Nadeem Ul Haque



_I hate to say I told you so! But I did. This is a practical budget made by practical economists and wannabe policy wonks. Of course egghead economists were kept a long distance from it. What did we get? The same old!

Reviewing the last three budget speeches, even the construction of the speech, the phraseology, is the same. Thanks to Microsoft, the template remains the same! All we require is some editing and some new numbers. 

What are my criticisms? Let me list a few.



1. There is unanimity that we are in the middle of an existential crisis. We have a failed state that has brought us into a civil war with 2.5 million displaced persons. All the budget says is that 50 billion is going to be spent on the displaced people. 

*Governance, which has caused our problem, is the last item on the agenda and comprises only some salary increases and contributions to a donor project  access to justice. This project reputedly is not very productive anyway.

Is that all that needs to be fixed in a failed state? What about civil service reform with monetised perks? What about a new devolved police service answerable to the community? What about a devolved and quality-driven education system independent of the education ministry? What about better training for better governance? Any investments into communities?*

2. After a long time, our growth rate is actually negative in per capita terms, balance of payments seem to be out of control, inflation is stubborn and the fiscal situation despite the fiscal responsibility act is not really under control.

What is on offer here? Virtually no analysis of the situation, let alone any ideas to address them. Instead we have the usual budgetary trick that has been used for sixty years: stray numbers on allocations for agriculture and industry, and an intended increased PSDP allocation. Any new sectors that can be opened up through deregulation?

3. The PSDP allocation, as all economists of any merit have been arguing, is full of flaws, where cars and housing for the powerful, and prestige projects in Islamabad and Lahore take all the money. Let us stop calling this development funding. It is time for a serious review of our earlier PSDP and the Planning Commission.

4. The federal government has for years denied devolution despite the law and the constitution requiring it. Part of our governance problem lies in the fact that excessive centralisation has weakened public service delivery. Nothing on that! The NFC award again gets the customary paragraph when the federation is severely strained. *When will these practical people learn that politics is the glue that holds us together and do the NFC award?*

5. *In these difficult times, the budget speech, which is an important moment for the leadership to show its helmsmanship, says nothing interesting or new about a new economic strategy that will put us on a sustainable growth path. Instead we have what we have always had: some handouts for the poor (more charity not opportunity); programmes for agriculture (dairy, model villages and more extension  how often have we heard that? Do they not even have new lines?); more subsidies for cars (how much is enough?); and this strange return to DFIs*.

In the midst of our biggest economic crisis, is this all?

6. For industrial development, we are creating an Enterprise Development Fund, a venture capital fund and a ***. *Do we learn nothing from history  all our failed experiments with NDFC, BEL, IDBP, etc.? Or is it jobs for the boys again?

A better strategy would be to review the EDF and the Trade Development Authority with a view to closing them down.

7. Amazingly, though we are looking for handouts, the budget envisages no expenditure reduction measures. Numerous redundant government departments remain on the books.*

8. *Nowhere is there any mention of government efficiency and measures to improve that. I guess the implication is that the government is extremely efficient. Does anyone agree?* The international community does not. We are among the poorest performers in every list from corruption to property rights. Should the government not be addressing its efficiency in its own budget?

9. *We are told that our tax to GDP ratio is low, yet no real tax measures are announced. A mere change in name for the existing petroleum tax and a minor increase in the registration fee for real estate; is that all?*

10. *Without going into details, I found it strange that the investment in energy and new education projects was almost the same as the government contribution to the investment fund for jobs for the boys!*



Very briefly, *how an economist would do the budget: she would determine the role of the government and focus on improving government productivity in all three branches  executive, legislative and judiciary. Then the budget would announce a multi-year programme of reform to improve governance through streamlining government (close down departments and agencies, and devolution) and clear measures (monetising perks) and investments (better training, use of technology, improved processes) in improving productivity.

Reform would be the main activity of this budget  a mainstream activity fully transparently budgeted. In fact, poor governance is the biggest drag on the economy. To make it the ninth point on a nine-point agenda is a travesty. But then the nine-point agenda is neither serious politics nor serious economics.

The economic strategy underlying the budget would depart from past failures. The sectoral focus on agriculture and industry has not paid off. Why harp on the same theme? Focus instead on building better markets. Domestic commerce, which is the leading sector even today, was not mentioned in the budget once: why? Is it because it is full of the small guys  retailers, wagon drivers and chaiwallahs? Of course practical men do not think they engage in value addition, a very strange term. Only men in air-conditioned offices and golf courses add value!

But even for an obvious sector such as domestic commerce, an economist would think carefully on what the government could do to help the sector before committing budgetary resources. The last thing a good economist would do is commit to a new government agency without a good sense of purpose and clear monitor-able goals. Increased bureaucracy is neither economic growth nor good governance!

It is time to end amateur economics and bring some serious economic thinking into the government. But then our seriousness about economic thinking is obvious from the fact that the government has not been able to appoint a serious Chief Economist for the Planning Commission for the last three years*_.

Nadeem Ul Haque is former Vice Chancellor of PIDE. Email: *nhaque_imf@yahoo.com*

Reactions: Like Like:
1


----------



## ejaz007

*Forex reserves increase to $11.643 billion*

KARACHI: The countrys foreign exchange reserves increased to $11.643 billion on the week ending on June 13, 2009 as compared with $11.514 billion previous week, data released by the State Bank of Pakistan showed on Thursday. The total reserves witnessed an increase $129 million during the last week. The reserves held by the central bank witnessed an increase of $101 million as the reserves reached to $8.301 billion, as compared to $8.200 billion last week. Similarly, the reserves held by banks (other than SBP) showed an increase of $28 million to reach $3.342 billion as compared with last weeks number of $3.314 billion last week. staff report

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*PIA in major deal for 27 single-aisle aircraft*

PARIS: PIA is in final discussions with Airbus and Boeing for major narrowbody deal. Pakistan International Airlines expects to conclude a major deal for up to 27 new single-aisle aircraft within the next few weeks, once it receives best and final offers from Airbus and Boeing. The prospective deal, worth more than $2 billion at list prices, could be one of the major narrowbody sales campaigns of 2009, and was revealed to Flight Daily News at the Paris air show by Managing Director PIA Capt Mohammed Aijaz Haroon. Speaking after signing a deal at the show with Thales for a RealitySeven Boeing 777-300ER full-flight simulator, Aijaz said the airline has completed the evaluation for the expansion of its fleet. "We're looking at the Airbus A320 and Boeing 737. We've had meetings with Airbus and Boeing and are waiting for their final numbers. We expect to finalise a deal within the next few weeks." The airline plans to acquire up to 27 aircraft, through a mix of orders and leases, Aijaz says. "We'll place nine firm orders with nine purchase rights, and take nine from leasing companies. Deliveries will start at the end of 2010." PIA has recently renewed and expanded its long-haul fleet through the delivery of nine 777-200ER/LRs and -300ERs, which are operated alongside five 747-300s. However, its narrowbody fleet comprises six ageing 737-300s, according to Flight's ACAS database. It also operates six ATR 42-500s and 12 A310-300s. Aijaz says PIA aims to conclude a simulator deal in parallel with the new fleet acquisition, and is in talks with Thales and CAE. "We'd like to have the simulator in time to allow us to do the training in Pakistan," says Aijaz. The new Level D 777-300ER simulator will begin operating its training centre in Karachi next year, and will be used for both PIA training needs and third-party work. The airline currently uses 777 simulators at the CAE training centre in Dubai and British Airways in London for its training. courtesy flight global

Daily Times - Leading News Resource of Pakistan


----------



## white_pawn

*Austria to invest in water and power sector ​*
ISLAMABAD (June 19 2009): Austrian Ambassador, Dr Michael Stigelbauer on Thursday called on the Minister for Water and Power, Raja Pervez Ashraf and discussed various matters of mutual interest and possibilities of investment and technical co-operation in water and power sector.

The Minister briefed the current energy situation and the measures being taken to meet the future water and power requirements. He gave him details of the water and power sector projects being initiated by the present government. He said that the government had planned to change its energy mix and now focusing on hydel, coal, wind and solar generation to provide cheaper and reliable power to the consumers.

He said that the government would welcome the Austrian investment and facilitate the investors. The Ambassador said that Austrian companies already working in Pakistan in energy sector were keen to expand their business while the new ones were also interested in this sector.

In this connection, Austria will hold a conference in Vienna in July next, which will further strengthen the co-operation with Pakistan in the field of energy. He said that this moot would provide a good opportunity of exploring and discussing ways and means to further strengthen economic co-operation between Pakistan and Austria.

He extended an official invitation to the Minister in this regard on behalf of the Austrian Minister for Economy. The Minister thanked the Austrian Ambassador and said that this initiative of the Austrian business community for Pakistan will supplement the economic and bilateral relations. He said that Pakistan will participate in Vienna conference being organised for it and will get benefit the Austrian expertise in the hydropower generation.-PR

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## white_pawn

*Zardari invites Belgian businessmen ​*
BRUSSELS (June 19 2009): President Asif Ali Zardari on Wednesday invited Belgian businessmen to come to Pakistan and explore a market that boasts of over 170 million people. Addressing leading Belgian businessmen at a dinner meeting, the President said just like Belgium, which is gateway to Europe, Pakistan was a gateway to the Central Asian states. "Lets take advantage of each other's markets," he added.

The President said on one side of Pakistan was the burgeoning market of China, having a population of over one billion while on the other side, there was India, which too had a market of over one billion people. He said Pakistan offered a cordial business atmosphere and with its strategic geographical location, businessmen from around the world could get closer to Chinese and Indian ports through Pakistan.

He said Pakistan, since its creation had been an ally of Europe and the US, but the business relations with them had not developed to the full potential. President Zardari said Pakistan had all the natural resources, which needed to be exploited.

Speaking about the security situation, he said it was in Pakistan's own interest to have peace and security. He said Islam was a religion of peace and love, but certain elements had misquoted some particular teachings of this great religion for their own vested interests.

He said Islam never spread through the use of force. It was the true message of love and peace that spread as far as the shores of Spain. President Zardari, who attended the first ever Pakistan-EU summit earlier in the morning, underlined the importance of democracy and dialogue for solving every problem. He said his Shaheed wife Benazir Bhutto travelled around the world, carrying the message of democracy and dialogue.

He said a dictator was removed in Pakistan through dialogue and it was the dialogue, which helped him secure his release from the prison. He expressed the hope that, with the support of the European Union, democracy would flourish in Pakistan.

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## white_pawn

*Pakistan and China sign MoU for reconstruction of AJK cities ​*
RECORDER REPORT 
ISLAMABAD (June 19 2009): Pakistan and China have signed a Memorandum of Understanding (MoU) for a $300 million project of reconstruction and rehabilitation of the three major cities of Azad Kashmir, destroyed in the October 2005 earthquake, under the AJK Urban Development Programme.

The Chinese Government, under this agreement, offered credit of $300 million to Pakistan to assist in the completion of the development work in the earthquake-affected areas of Azad Kashmir, including Muzaffarabad, Bagh and Rawalakot. While Pakistan contributed an additional $53 million to complete the various reconstruction projects under the AJK Urban Development Project, the spokesman of the Earthquake Rehabilitation and Reconstruction Authority (ERRA) said here on Thursday.

He said that the umbrella contract for this mega project had already been signed between the Earthquake Rehabilitation and Reconstruction Authority (ERRA) and the two Chinese companies, including China International Water and Electric Corporation and China BEIXIN Construction and Engineering on February 14, 2009.

Under this project, 170 development project would be initiated in the three quake-hit districts of AJK, ERRA, the spokesman said. He said that an amount of $190.62 million had been allocated for the completion of the 90 projects of Muzaffarabad City, $123.55 million for the 50 projects in Bagh city and $38.83 million for the 30 projects in Rawalakot city.

He said that these projects would be completed in the next 4 and half years. The spokesman said that a Steering Committee was constituted under the Deputy Chairman ERRA Lieutenant General Sajjad Akram for the smooth and effective implementation of Muzaffarabad City Development Project (MCDP), under which Muzaffarabad, Bagh and Rawlakot Urban Development project would be executed.

The committee had the mandate to give policy directions for the Project Implementation and ensuring timely and effective co-ordination of all inputs regarding the reconstruction in AJK. The contract signing is in line with ERRA's Mission of "Build Back Better", he said, adding that the AJK Urban Development Programme aims at providing safe housing, improved city environment, modern physical and social infrastructures with the target to boosting economic and social growth in the earthquake-affected areas.

These projects would provide all modern day facilities, including the construction of Government buildings, roads, bridges, shopping centers, Satellite towns, play grounds, parks, education and health facilities, wholesale markets, slaughterhouses, transport terminals, neighbourhood centers, designing and the laying of infrastructure facilities like water supply, sewerage, underground electricity and telecom cables.

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## white_pawn

*Hungary keen to benefit from privatisation programme ​*
ISLAMABAD (June 19 2009): The Hungarian investors are keen to benefit from the ongoing privatisation programme of Pakistan besides exchanging experience with the Pakistani entrepreneurs. These views were expressed by envoy of the Republic of Hungary to Pakistan, Istvan Darvasi at a meeting with Federal Minister for Privatisation, Syed Naveed Qamar here on Thursday.

Naveed Qamar said that the initiative would further strengthen ties between the two countries adding that Pakistan has potential to become hub for the regional economies, which would benefit all stakeholders. Referring to the recent European Union (EU) Summit, the minister said that Pakistan's stance for "Trade not Aid" reflects country's targeted goal for achieving stronger and sustainable economy.

Giving an overview of Pakistan's privatisation policy and programme, Syed Naveed Qamar said that with the commencement of public-private partnership mode to privities public sector entities, the government was determined to bring in private sector efficiencies and fresh investments, to increase dividend on government's share holdings and enhance the value of the national assets.

The minister informed that the countrywide network of post offices and utility stores would be made further effective through PPP mode. The government was also considering going ahead with power distribution and generation sectors and was reviewing to improve the services of Pakistan railways, he added.

Under the new privatisation policy the workers were being empowered by allocating 12.5 percent shares of all the public sector entities to ensure their representation on the Board of Directors and transmit the profit of the respective entities to the workers, he added

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## white_pawn

*Zardari keen to develop housing, infrastructure, says Faruqui ​*
BEIJING (June 19 2009): The Secretary General to the President of Pakistan Salman Faruqui, in his meeting with the leadership of China State Construction Engineering Corporation (CSCEC) on Thursday mentioned that the President of Pakistan Asif Ali Zardari attaches highest importance to housing and infrastructure development in Pakistan.

He said that the Federal Government plans to construct 50,000 to 100,000 apartments for the employees of the Federal and Provincial Governments in the cities of Karachi, Lahore and Islamabad within a period of two years. He stated that Pakistan offers huge potential in the housing and infrastructure development sectors.

In this connection, he said that in the next 4-5 years the Government plans to construct one million housing units in various cities of Pakistan both in public and private sectors. He invited the CSCEC to come to Pakistan and explore this potential.

The Secretary General underlined that the President of Pakistan was keen in the construction of high rising buildings in Pakistan. He was also interested that Chinese construction companies, which had unmatchable experience in this field should come to Pakistan where all necessary facilities will be provided.

The CSCEC, which had several projects in Pakistan, showed its commitment to intensify their focus in Pakistan. The Company had decided to send a delegation of its experts to Pakistan in the next few weeks to visit different cities and localities for the purpose of building apartments, houses, infrastructure and commercial buildings. The Secretary General assured the CSCEC that the Government of Pakistan will extend all necessary assistance, co-operation and provide security to the Chinese companies who were investing in Pakistan.

Reactions: Like Like:
1


----------



## white_pawn

*Activity at Karachi and Qasim ports ​*
RECORDER REPORT 
KARACHI (June 19 2009): The Karachi Port handled 87,320 tonnes of cargo including 65,601 tonnes of import and 21,719 tonnes of export; 3,680 loaded and empty containers (TEUs) during last 24 hours ending at 0700 hours on Thursday. The freights comprised of 56,320 tonnes of dry cargo including 32,119 tonnes of general cargo; 12,399 tonnes of coal; 11,251 tonnes of cement; 551 tonnes of rice and 31,000 tonnes of oil/liquid cargo.

Seven ships namely viz High Current, Addarraq, Alliance Norfolk, Sima Sahba, Aqua Grace, Apl Sharjah and New Fantasy carrying tankers, car carrier, containers, bulk, container and bulk sailed out to sea respectively, during the reported period.

Nine vessels namely Apl Sharjah, Alliance Norfolk, Union Carrier, Hyundai Emperor, Johar, Gulf Tiger, Summit Europe, Shayan 1 and Qatar Sadiq are currently at the berths to load/off load containers, car carrier, general cargo, containers, tankers, containers and bulk respectively during 24 working hours.

Three ships namely Adriatic Arrow, Union Carrie and Summit Europe are expected to sail on Thursday. While three more vessels viz Hyundai Emperor, M T Johar and Gulf Tiger are expected to sail on Friday. Four vessels namely Wan Hai 507, Kota Akbar, Pacific Arrow and Pacific Express carrying containers, cement, steel and general cargo are due to arrive on Thursday. While another ship namely Champion Trader carrying tallow oil is expected to arrive on Friday.


PORT QASIM
A total cargo volume of 50,011 tonnes including 23,904 tonnes of import; 26,107 tonnes of export cargo and 2,365 containers (TEUs) was handled during last 24 hours on Thursday.

The cargoes comprised of 3,964 tonnes of diesel oil; 6,800 tonnes of palm oil; 8,239 tonnes of cement and 31,008 tonnes of containerised cargo. Four ships namely C V Nedlloyed Oceania, C V Najran, C V ACX Marguerite and M V Suez sailed out to sea during last 24 hours. While another ship viz Al-Deerah carrying oil tanker is expected to sail on the same day.

Eight ships namely C V ACX Marguerite, C V Nedlloyed Oceania, C V Najran, M V She Belle, M V Walse-II, M V Suez, M T JBU Opal and M T Al-Deerah are currently occupying the berths to load/off load containers, cement, palm oil and diesel oil at PQA Terminal during reported period respectively. Five vessels namely Al-Noof, Saudi Hofuf, New Dehli Express, Alex-I and Rimar carrying containers and cement are currently at the outer anchorage.

Three ships namely C V Dehli Express, C V Al- Noof and M V Alex-I are scheduled to take berths at Containers Terminal and Multi Purpose Terminal respectively on Thursday. While three more ships namely Maersk Novazzano, M T Sigas Maoud and M T Sichem Defender are due to arrive at Port Qasim carrying containers and chemicals on Friday. Two more vessels viz C V MSC Bulgaria and MSC Megali are due to arrive at Port Qasim on Saturday.

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## white_pawn

*China's investment opportunities in Railways discussed ​*
SHANGHAI (June 19 2009): The Chairman of China's Railway Engineering and Communications Company called on Federal Minister for Investment, Senator Waqar Ahmed Khan, here on Thursday and exchanged views on China's investment opportunities in Pakistan Railways.

Talking to the Shanghai based company's Chairman, Zhong Zhiguo, Minister Waqar said that there is big potential for investment particularly in improvement and rehabilitation of railways signalling system in Pakistan. The minister invited the Chairman along with a delegation to visit Pakistan so that he could arrange meetings with the concerned ministries.

Chairman Zhoug said that his company has vast experience in railways sector and added that they cater 80 percent need of the railways locking system of China. Earlier, talking the key media here, Minister Waqar said that the government of Pakistan is working on three pronged policies to attract and facilitate foreign investments in his country.

He said that government is planning to get approval through a bill from the parliament to ensure that foreign investment is fully protected. If there was any change in the government through democratically means, these policies remained unchanged, he added.

Minister Waqar said that the government has taken all the political forces into confidence to launch operation against the militancy, adding that our army would soon be able to root out the extremist elements from the Swat and adjoining areas.

This will also ensure peaceful conditions for the foreign investors in his country. He also pointed out that there was great potential of investment in various areas of economy including agriculture, small and large seized dams, infrastructure development, on and off shore oil and gas exploration, transport, coal and mineral development, food and processing as well as in telecommunications sectors.

Senator Waqar said that out of 160 million population of Pakistan, only 90 million people have the modern telecommunication facilities and the present government is committed to provide every one to have at least one telephone connection.

He further said that there is big scope of investment in telecommunication sector particularly in the country's rural areas. "Pakistan, China enjoy excellent co-operative relations at government to government and people to people level", the minister said adding that they want to commensurate these ties into economic fields as well.

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## white_pawn

*First container train arrives at Jia Bagga Terminal ​*
KARACHI (June 19 2009): The Jia Bagga Container Terminal, Raiwaind Road Lahore was declared open with the arrival of first container train last week, according to a National Logistics Cell (NLC) press release. The terminal would formally be commissioned by June 30.

The bonded and non-bonded container train terminal operated jointly by NLC dry port segment and upcoming NLC Express Freight Train (NEFT) with its designed potential would bring good revenue and business in freight/cargo to Pakistan Railways through its premium services and brand "In step with tomorrow".

The future of logistics in Pakistan with the collaboration of two of the largest public entities, Pakistan Railways and NLC would form a reliable and modern logistics multi-model supply chain solution. NEFT and Pakistan Railways had jointly signed an agreement on March 21 this year, where Railways would make available rolling stock to NEFT for its operations at Jia Bagga from both the port in Karachi, says the press release.-PR

Reactions: Like Like:
1


----------



## Pk_Thunder

* Recommendations finalised to improve finance bill*​
Friday, June 19, 2009
ISLAMABAD: The Senate Standing Committee on Finance, continued its deliberations for the 3rd consecutive day and finalised various recommendations to bring further improvement in the finance bill 2009-2010.

The committee met under the Chairmanship of Senator Ahmed Ali. It was observed that the Independent Power Producers (IPPs) have failed to work as per the expectations of the people, adding that they should not be given free hand to fleece the people.

The committee recommended that a mechanism should be worked out to bring improvement in the performance of the IPPs and to provide quality service to the people.

The committee endorsed the imposition of 20 paisa tax on the Short Message Service (SMS) being provided by cellular companies.

In its deliberations the committee considered various recommendations and amendments proposed by a number of senators including senators Haroon Khan, Ilyas Bilour, Ishaq Dar, Jan Muhamamd Jamali and Mian Raza Rabbani.

The committee eulogised the services of the former senator Ch Muhammad Anwar Bhindar, who was especially invited to help finalise the amendments in the proposed finance bill.

Adviser to Prime Minister on Finance, Shaukat Tarin assured the committee that every effort would be made to seek guidance from the committee and to bring about further improvement in the finance bill in light of its recommendations.

He said that the committee is the highest forum of the parliament and the government would make sure to incorporate the amendments suggested by the honourable members of the upper house.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Tanners want import of chemicals zero-rated*​
Friday, June 19, 2009
By our correspondent

KARACHI: The government should immediately declare zero-rated the import of dyes and chemicals used in tanneries in order to enhance foreign exchange reserves of the country.

In a statement, Pakistan Tanners Association (South Zone) Chairman Shah Afzal Husain, while making the demand, explained that enhanced exports of leather goods would help raise foreign exchange reserves automatically. The proposed increase in the tax on import of raw material would, otherwise, surge the cost of doing business and discourage the industry from continuing its business.

In an SOS to the high-ups in Islamabad, Husain along with Gulzar Firoz, Chairman FPCCI Environment Committee, said that the government has totally turned a deaf ear to the leather sector in the budget for 2009-10 despite commitments during consultations with representatives of the industry.

There is nothing for the industry in the budget, they said and regretted that not a single incentive was given to the leather industry in particular, which has great potential to contribute foreign exchange earnings to the national exchequer.

He also fulminated against the governments decision of declaring the one per cent tax deduction on export proceeds as the minimum level, which is used to be the full and final tax rate till today. It will only expose exporters to harsh rigorous and vagaries of the income tax system, he said.

He further said that the exporting industry was going through difficult time due to global recession like situation. In this tough time the government has, moreover, doubled the withholding tax to two per cent from one per cent previously on import on raw. This will make raw material more expensive, pushing up production cost and rendering exports incompetitive.

He demanded of the government to review above proposals, and ensure stable utility charges rates without frequent change to facilitate exporters to quote and negotiate firm rates with foreign buyers.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Austria keen to invest in water, power sector*​
Friday, June 19, 2009
ISLAMABAD: Austrian Ambassador Dr Michael Stigelbauer on Thursday called on the Minister for Water and Power Raja Pervez Ashraf, discussing various matters of mutual interest and possibilities of investment and technical cooperation in water and power sector.

The minister briefed the ambassador about the current energy situation and measures being taken to meet the future water and power requirements. He gave him details of the water and power sector projects being initiated by the present government.

He said that the government has planned to change its energy mix and is now focusing on hydel, coal, wind and solar generation to provide cheaper and reliable power to the consumers. He added the government will welcome Austrian investment and facilitate investors.

The ambassador said that Austrian companies are already working in Pakistan in the energy sector and are keen to expand their business while new ones are also interested.

In this connection, Austria will hold a conference in Vienna next July, which will further strengthen the cooperation with Pakistan in the field of energy.

He said that this moot will provide a good opportunity of exploring and discussing ways and means to further strengthen economic cooperation between Pakistan and Austria. He extended an official invitation in this regard to the minister on behalf of the Austrian minister for economy.

The minister thanked the Austrian ambassador and said that this initiative of the Austrian business community for Pakistan will render economic and bilateral relations stronger. He said Pakistan will participate in the Vienna conference and will benefit from Austrian expertise in hydropower generation.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Zardari invites Belgian businessmen*​
BRUSSELS (June 19 2009): President Asif Ali Zardari on Wednesday invited Belgian businessmen to come to Pakistan and explore a market that boasts of over 170 million people. Addressing leading Belgian businessmen at a dinner meeting, the President said just like Belgium, which is gateway to Europe, Pakistan was a gateway to the Central Asian states. "Lets take advantage of each other's markets," he added.

The President said on one side of Pakistan was the burgeoning market of China, having a population of over one billion while on the other side, there was India, which too had a market of over one billion people. He said Pakistan offered a cordial business atmosphere and with its strategic geographical location, businessmen from around the world could get closer to Chinese and Indian ports through Pakistan.

He said Pakistan, since its creation had been an ally of Europe and the US, but the business relations with them had not developed to the full potential. President Zardari said Pakistan had all the natural resources, which needed to be exploited.

Speaking about the security situation, he said it was in Pakistan's own interest to have peace and security. He said Islam was a religion of peace and love, but certain elements had misquoted some particular teachings of this great religion for their own vested interests.

He said Islam never spread through the use of force. It was the true message of love and peace that spread as far as the shores of Spain. President Zardari, who attended the first ever Pakistan-EU summit earlier in the morning, underlined the importance of democracy and dialogue for solving every problem. He said his Shaheed wife Benazir Bhutto travelled around the world, carrying the message of democracy and dialogue.

He said a dictator was removed in Pakistan through dialogue and it was the dialogue, which helped him secure his release from the prison. He expressed the hope that, with the support of the European Union, democracy would flourish in Pakistan.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Seminar to analyse strengths and weaknesses of Budget 2009-10*​
ISLAMABAD (June 19 2009): To analyse strengths and weaknesses of the federal budget 2009-10, a seminar titled "Challenging times and budget 2009-10" was organised by Sustainable Development Policy Institute (SDPI), Sungi Development Foundation and Action Aid-Pakistan, here on Thursday.

Former state minister for finance and revenue, Omar Ayub Khan, Dr Abid Qayyum Suleri, executive director of the SDPI and economic expert Dr Sajjad Akhtar analysed different aspects of the budget and expressed their views at the seminar.

Omar Ayub Khan, while giving a detailed presentation covering the sectoral aspects of the budget, lamented that the coalition government prepared the budget on harsh conditionalities of the International Monetary Fund (IMF) while slashing subsidies on power sector as well as ignoring the local context of the country regarding poor socio-economic conditions and worsening law and order situation.

He predicted that increase in electricity tariff and imposition of carbon surcharge would only fuel inflation while there were no incentives announced for agriculture, industry and services sectors. On increase of external loans during June 2008 to March 2009, he said only the IMF debt increased from $1.34 billion to $4.39 billion during this period which accounts 78 percent of the total debt increase adding that subsequent debt servicing will put a further strain on our budget.

Dr Abid Suleri said that a quick analysis of the federal budget reveals that the fiscal year ahead would be tough both for the people as well as the government. He said that the people would see increase in their economic sufferings, whereas the government, due to various external and internal constraints, was bound to take measures that would reduce its popularity.-PR

Reactions: Like Like:
1


----------



## Pk_Thunder

*Pakistan and China sign MoU for reconstruction of AJK cities*​
RECORDER REPORT
ISLAMABAD (June 19 2009): Pakistan and China have signed a Memorandum of Understanding (MoU) for a $300 million project of reconstruction and rehabilitation of the three major cities of Azad Kashmir, destroyed in the October 2005 earthquake, under the AJK Urban Development Programme.

The Chinese Government, under this agreement, offered credit of $300 million to Pakistan to assist in the completion of the development work in the earthquake-affected areas of Azad Kashmir, including Muzaffarabad, Bagh and Rawalakot. While Pakistan contributed an additional $53 million to complete the various reconstruction projects under the AJK Urban Development Project, the spokesman of the Earthquake Rehabilitation and Reconstruction Authority (ERRA) said here on Thursday.

He said that the umbrella contract for this mega project had already been signed between the Earthquake Rehabilitation and Reconstruction Authority (ERRA) and the two Chinese companies, including China International Water and Electric Corporation and China BEIXIN Construction and Engineering on February 14, 2009.

Under this project, 170 development project would be initiated in the three quake-hit districts of AJK, ERRA, the spokesman said. He said that an amount of $190.62 million had been allocated for the completion of the 90 projects of Muzaffarabad City, $123.55 million for the 50 projects in Bagh city and $38.83 million for the 30 projects in Rawalakot city.

He said that these projects would be completed in the next 4 and half years. The spokesman said that a Steering Committee was constituted under the Deputy Chairman ERRA Lieutenant General Sajjad Akram for the smooth and effective implementation of Muzaffarabad City Development Project (MCDP), under which Muzaffarabad, Bagh and Rawlakot Urban Development project would be executed.

The committee had the mandate to give policy directions for the Project Implementation and ensuring timely and effective co-ordination of all inputs regarding the reconstruction in AJK. The contract signing is in line with ERRA's Mission of "Build Back Better", he said, adding that the AJK Urban Development Programme aims at providing safe housing, improved city environment, modern physical and social infrastructures with the target to boosting economic and social growth in the earthquake-affected areas.

These projects would provide all modern day facilities, including the construction of Government buildings, roads, bridges, shopping centers, Satellite towns, play grounds, parks, education and health facilities, wholesale markets, slaughterhouses, transport terminals, neighbourhood centers, designing and the laying of infrastructure facilities like water supply, sewerage, underground electricity and telecom cables.

Reactions: Like Like:
1


----------



## courageneverdies

*World Bank Supports Pakistans Efforts to Strengthen Social Safety Nets, Eradicate Polio*​
*WASHINGTON, June 18, 2009* &#9472; The World Bank today approved two projects totaling US$135 million to help the Government of Pakistan strengthen social safety nets and eradicate polio. 

The increases in global food and fuel prices and Pakistans ongoing energy crisis have raised the vulnerability of the countrys poor to an unprecedented level. Pakistans publicly financed social safety net programs are limited in their coverage, administration, targeting efficiency, and ability to respond to shocks.

The US$60 million Pakistan Social Safety Net Technical Assistance Project will enhance the operation and management of a nationwide, effective and transparent safety net system for the poor in Pakistan to cushion the negative effects of the food and economic crisis.

The Government of Pakistan is committed to developing a modern social safety net system, said Yusupha Crookes, World Bank Country Director for Pakistan. This project will assist Pakistan in establishing an effective social safety net system that provides poor people with basic income support.

The World Bank also approved US$74.68 million to support the Governments efforts to eradicate polio. Pakistan has made progress in its efforts to eradicate Polio since 1997, with the number of confirmed Polio cases decreasing substantially from around 1,147 in 1997 to 32 in 2007. However, in 2008 there was an increase in virus transmission with 117 cases reported, spread across all four provinces. 

The Third Partnership for Polio Eradication Project, which is part of the Global Polio Eradication Initiative (GPEI), will help Pakistan move towards eradicating the disease from its territory by ensuring timely supply and effective use of Oral Polio Vaccines (OPV), targeting children less than five years of age. 

The credit for Polio Eradication is a performance-based credit with an option to be converted into a grant on successful achievement of project objectives. Once the objectives are achieved, the repayment of the credit will be undertaken by Buy-down partners, including Bill and Melinda Gates Foundation and United Nations Foundation

The credits from the International Development Association (IDA), the World Banks concessionary lending arm, carry a 0.75 percent service fee, a 10-year grace period, and a maturity of 35 years.

---

KIT Over n Out


----------



## Pk_Thunder

*$500 million AETP loan facility: ADB seeks policy action compliance status*​
ZAFAR BHUTTA
ISLAMABAD (June 20 2009): The Asian Development Bank (ADB) has sought the status of policy action compliance, a prerequisite for approval of $500 million loan facility under the Accelerating Economic Transformation Programme (AETP) (Subprogram 2). The ADB board is scheduled to meet on June 25 to approve $500 million loan under AETP (Subprogram 2). Pakistan is urging ADB to release the amount before the end of the current financial year 2008-09.

ADB board had approved $500 million loan under AETP (Subprogram 1) on September 30, 2008, aimed at helping Pakistan to achieve and sustain higher economic growth in the medium term. According to sources, the ADB has disbursed $940 million to Pakistan so far, and the government wants ADB to release another $500 million under AETP (subprogram 2) by the end of the financial year 2008-09. Pakistan is expecting total disbursement of $1.5 billion from ADB by June 30, 2009, sources added.

They said that ADB has sought documentation about amendments to anti-money laundering (AML) legislation submitted to Parliament. Finance Ministry has been requested by ADB to provide a copy of the document submitted to Parliament.

According to sources, ADB is of view that AML would empower the Financial Monitoring Unit (FMU) of State Bank of Pakistan (SBP) to collect necessary record and information from any person relating to transaction for investigating suspicious currency transactions involved in financing of terrorism.

Finance Ministry has approved allocation for FMU in the 2009-10 budget. ADB has sought status of allocation for FMU in 2009-10 budget. If the budget is not approved before June 25, Finance Ministry would provide confirmation letter to ADB about allocation for FMU in 2009-10 budget.

The enhancement of FMU through hiring of new professional staff is part of policy action required by ADB, and the government of Pakistan has been asked to provide confirmation in this regard. Director-General (DG), FMU, has been asked to provide complete information about the number of recruited staff since October 2008 and current status of fresh recruitment which is under progress. The ADB has also requested for details of a time-bound action plan to improve implementation of underperforming ADB projects identified in a plan.

Following policy actions for disbursement of OCR loan, borrower shall allocate $219.45 million in its budget for financial year 2009-10 to meet land acquisition and resettlement costs relating to ADB projects. ADB has demanded confirmation about allocation in budget.

As a part of policy action, Economic Co-ordination Committee (ECC) of the Cabinet has endorsed implementation of a formula based system for approving wheat support price for 2009. ADB has sought information whether ECC has approved wheat support price taking into account the cost of production, regional prices, import and export parity prices, domestic and global market conditions and wheat issue price reflecting all related costs.

Pakistan is also required to submit details about the allocation for Benazir Income Support Programme (BISP) in 2009-10 budget as well as policy action required to enhance the allocation to provide income support for at least 5 million families during the next fiscal year 2009-10. BISP is supported by the IMF, and a survey is being conducted by the World Bank to ensure transparency of this major social safety initiative by the government. ADB role with regard to BISP has been nil.

ADB has sought information about the enhancement in budget allocation for the next financial year and details of BISP utilisation report from October 2008 to April 2009. As part of policy actions, Pakistan is to set up central and provincial offices of BISP and improve targeting system for beneficiaries. The government has increased budget allocation for BISP from Rs 34 billion in outgoing financial year to Rs 70 billion for fiscal year 2009-10.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Access for Pakistani goods to EU markets: Zardari seeks Merkel's support*​
BRUSSELS (June 20 2009): President Asif Ali Zardari on Friday told German Chancellor Angela Merkel that the fight against terrorism, which is threatening not only Pakistan but the whole world, can be won with international co-operation. At a breakfast meeting here at an upscale hotel in downtown Brussels, the two leaders discussed a host of issues including EU-Pakistan economic co-operation, fight against terrorism, situation in Afghanistan and Pakistan-India relations.

Foreign Minister Shah Mehmood Qureshi told APP after the meeting that the President also informed the German Chancellor of the situation in Swat and Malakand. The President told her that the military operation against terrorist elements has resulted in displacement of over 2 million people, Qureshi said.

Zardari said that Germany is a friend of Pakistan, one of the largest economies of the European Union, and sought German co-operation for access of Pakistan's goods to European markets. The President also told Angela that Pakistan wants improvement of trade and economic ties with Europe and asked for German support for a free trade agreement (FTA) with EU.

The German Chancellor, while supporting Pakistan on various issues, asked Zardari the areas in which her country could help Pakistan at the next Friends of Democratic Pakistan meeting in Istanbul. She also expressed her desire that Pakistan and India should resume their dialogue, to which President Zardari said that his country wants normalisation of relations with its neighbour in the interest not only of the two countries but of the whole region.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Economic crisis traps millions in poverty: ADB*​
ISLAMABAD (June 20 2009): The global economic crisis is also a social crisis in Asia, with an estimated 60 million people remaining mired in poverty due to falling growth rates, an Asian Development Bank executive has said. "The social consequences of the economic crisis are very severe," said Rajat M. Nag, ADB Managing Director General. "That is our biggest concern", a private television channel reported.

Nag said the estimated three percent drop in gross domestic product (GDP) between 2008-9 in developing Asia - excluding Japan, Australia and New Zealand - meant 60 million would fail to emerge from poverty. An extra 10 million people would be undernourished and around 56,000 more children aged under five would die. "Asia will need to sell its products to itself more than it has," Nag said. Developing Asia at present exports 60 percent of its production to Japan, the Eurozone and the United States and "that cannot continue forever."

Asia must boost consumption - an important part of poverty reduction - by saving less and spending more, he said. He said the regional savings rate was very high, largely to compensate for the lack of welfare programmes. "People save for old age, people save for ill health, people save for education," Nag added. "Is it more efficient for people to save individually for what is essentially a social protection network, or is it more efficient to save collectively as a nation".

"If we want to increase consumption, we've got to decrease savings." Service industries should also be encouraged. At present, Nag said, services in Asia are difficult to access because of protectionist or other measures. "The development model for the last 50 years of export-oriented growth which has served Asia well, which we believe was the right one, now needs to be rethought."

Nag also called for greater Asian integration on environmental and infrastructure matters. "The centre of gravity of economic power is shifting to Asia. Asia needs to cooperate and integrate within itself," he said. "It does not mean tomorrow we will have an Asian common market or an Asian common currency but I think the trend is to have greater integration."

Average growth in developing Asia was 6.3 percent in 2008 and the ADB forecasts 3.4 percent this year, rising to six percent next year. "We think we have seen the worst of it," Nag said. But he cautioned that the biggest threat to recovery was "to think of green shoots as more than green shoots" and slowdown on reforms and stimulus measures. "The economic recovery is still very fragile," Nag said.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Inflation to stay a major challenge amid rising oil prices: Hina*​
RECORDER REPORT
ISLAMABAD (June 20 2009): Minister of State for Finance Hina Rabbani Khar on Friday said that inflation would continue to be a major challenge in the next fiscal year on the back of rising oil prices in the global market. Responding to the criticism of Senators, the Minister winding up speech on the budget debate said that rising prices of commodities and not the financial crisis was biggest threat to Pakistan.

However, she said inflation has been brought down to 14 percent from 25 percent in October last year and efforts would be made to reduce it to single digit. She said the government has fully endorsed the Senators' demand for making the parliament more effective in the budget-making process but their criticism that the government lacks economic vision was not based on facts.

"We are working on 9-point agenda of economic reforms with a view to achieving economic goals and bringing about economic stability first," she added. The minister did not agree to the criticism that the budget was based on assumptions and what the government would do if the pledges of Friends of Democratic Pakistan (FODP) did not materialise timely.

Giving details, she said that the government had asked money from FODP for poverty alleviation, education and health and they have pledged $5.2 billion for a period of two years. Of $5.2 billion, $2.6 billion are expected in the next fiscal year and on the basis of this social sector allocations in the budget were made.

"At least our intentions and assumption were right," she said, adding that in case of delay from the FODP the government has asked for International Monetary Fund (IMF) stand-by facility to have that money for meeting budgetary requirement, which she said would be returned to it on receiving pledges from the FODP.

The minister said that allocations for health and education would be increased to four percent of the GDP next year and some of the recommendations of the Pay and Pension Commission would also be implemented within the next financial year. She said the government is committed to raising allocations for education and health to six percent of the GDP in three years.

Referring to demands of the members about further increase in salaries of government employees, she said a Pay and Pension Commission headed by Dr Ishrat Hussain would submit suggestion in three months. She assured the Senate that the government would seriously look into the suggestions given by the two houses on budgetary proposals and said in this regard the Prime Minister has already announced withdrawal of carbon tax on CNG.

However, she said that the country has to decide whether it wanted to use CNG for industrial growth or wanted to burn it on roads. The minister also assured the House that the government would subsidise gas and electricity for the industrial sector, which at present was being used for other sectors. We wanted to do away with this bias, she added.

She said it was because of the agriculture friendly policies of the government that this year about Rs 270 billion went to the rural economy. She said that an allocation of Rs 37 billion has been made in the next budget for ensuring storage facilities in every district. One hundred union councils would have model farming to promote agriculture.

She said Rs 40 billion have been kept in the budget for export promotion and to remove major flaw in banking sectors which was not catering for loan to borrowers. A credit guarantee fund of Rs 2.5 billion would be set up as a buffer between bank and borrowers in agriculture and SME sectors.

She said an integrated energy plan would be implemented in 5 to 10 years in which reliance on furnace oil would be replaced with hydro, coal and solar resources. Hina said Rs 70 billion will be spent under Benazir Income Support Programme and Rs 35 billion under Peoples Works Programme would help alleviate poverty and address the challenge of unemployment.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Budgetary measures to provide much-needed relief to public: Gilani*​
ISLAMABAD (June 20 2009): Prime Minister, Syed Yousuf Raza Gilani, has expressed the confidence that the steps taken in the budget 2009-2010 will provide much-needed relief to the people. He stated this while talking to a delegation of the Muttahida Qaumi Movement (MQM), which led by Minister for Overseas Pakistanis, Dr Farooq Sattar, called on the Prime Minister at his Parliament House Chamber here on Friday.

The Prime Minister said the economic revival of the country was the government's top priority. He asked parliamentarians to give maximum suggestions during budget debate. Talking to the delegation, the Prime Minister said the government was taking steps for meeting energy needs of the country by setting up new power plants as well as by encouraging conservation. The delegation informed the Prime Minister that public at large particularly the trading community had hailed the announcement made by the Prime Minister regarding abolition of proposed carbon tax on CNG.

They also told the Prime Minister about matters relating to the KESC as well as the development programmes in their constituencies. Adviser to Prime Minister on Finance, Shaukat Tarin, and Minister of State for Finance and Economic Affairs, Hina Rabbani Khar, were also present.

Other members of the delegation included MNAs Salahuddin, Khawaja Sohail Mansoor, Abdul Qadir Khanzada, Abdul Wasim, Sheikh Salahuddin, Sufwan Yusuf, Dr Nadeem Ehsan, Syed Haider Abbas Rizvi, Dr Muhammad Ayub Sheikh, Iqbal Muhammad Ali Khan, Syed Tayyab Hussain and Abdul Rashid.-PR

Reactions: Like Like:
1


----------



## Pk_Thunder

*Stronger global trade ties will help reduce poverty: minister*​
RECORDER REPORT
ISLAMABAD (June 20 2009): Minister of State and chairman Board of Investment Salim Mandviwala has said that enhancement of trade ties with outer world will help Pakistan eliminate poverty, unemployment and other problems.

"The government is making efforts to attract foreign investment in Pakistan and efforts will only start bearing fruits when we put our own house in order first", the minister said while addressing a dinner hosted by Rawalpindi Chamber of Commerce and Industry (RCCI) in honour of foreign ambassadors in Pakistan.

The minister stressed the need of efforts on the part of both government and business community to improve Pakistan's image internationally. He appreciated the gesture given by RCCI to bring together all the foreign diplomats to improve country's image. This shows the commitment of the business community towards the progress of the country, he added.

The state minister also cut the cake on the golden jubilee of RCCI. Earlier in his welcome address President RCCI Asad Mashadi said that time is pressing demand of prevailing circumstances to develop good image of the country globally and for this purpose cordial and healthy interaction with the international community is very imperative.

He said that the purpose of the event was to make a liaison with the representatives of international community to let know them the real picture about the country and also tell them that except some parts, Pakistan is a safe country. He said that the western media has been portraying the wrong image of Pakistan that affects the whole nation particularly the business community.

"RCCI has always tried to make efforts to enhance trade related activities and to promote industry by attracting foreign investors but this all is only possible if the perception of the country will be respectable in the world.

Ambassadors and Diplomats of many countries, Presidents of Chambers and former Presidents of RCCI, high government officials and large number of businessmen were also present on the occasion. The event provided the participants a good chance to interact with each other and discuss current international scenarios freely.

Reactions: Like Like:
1


----------



## Pk_Thunder

* Auto sector demands stimulus package*​
Saturday, June 20, 2009
By Mansoor Ahmad

LAHORE: Auto parts manufacturers have urged the government to offer a stimulus package to the producers of small cars using large number of local components, which will revive the ailing automobile industry that is entertaining high-end consumers only.

They point out that even a five per cent cut in capital value tax (CVT) on completely knocked down (CKD) kits will benefit cars above 850cc as smaller cars are already exempted from the tax. They express surprise that producers of big cars have been facilitated in the budget as their production has not declined despite a huge fall in overall car production in the country. In fact, they say, production of some expensive cars has increased.

Auto parts vendors are more interested in revival of sales of smaller cars which have dropped drastically in the past two years due to various factors, said Syed Nabeel Hashmi, former chairman Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM). He said small cars had reached deletion level of up to 70 per cent and provided a lot of jobs in the auto vendor industry of the country.

He said production of small cars used by the lower middle class had dropped by 70 per cent in the past 15 months. This has caused a loss of 50,000 jobs provided by PAAPAM members.

He said the federal government had lost billions in sales tax and other levies, adding provincial revenues had also dropped sharply due to low registration of new vehicles. Last but not the least, the auto parts manufacturing industry had virtually stopped developing new technologies, he said and urged the government to announce a five-year auto stimulus package to boost small car sales.

PAAPAM Vice Chairman Tariq Nazeer said under the package the government should ensure availability of low mark-up finance for cars having the highest percentage of local components. The government, he suggested, should pick up the mark-up differential up to 5 per cent based on the level of deletion.

He said increased car sales would provide more revenue to the government than the subsidy on bank mark-up, adding that would increase employment in the auto vendor industry and encourage them to upgrade their technologies and develop new components.

He said the Engineering Development Board and the Ministry of Industries and Production should monitor the scheme.

Leading auto vendor Usman Malik said stimulus packages were being provided to the automobile sector around the world after the recession struck global economies. China, he said, had introduced a package which included cut in auto sales tax, easy access to auto loans, subsidised new purchases replacing old cars, high rebate for auto parts export and others.

He said in the wake of an eight per cent slump in car sales in October 2008, German authorities announced in early November suspension of state road tax on new cars purchased in the following 12 months to revive the auto market. Costing 1.4 billion euros a year, the tax cut could be extended for another year if new car sales remain sluggish.

Usman said Taiwan cabinet had approved a proposal which allowed car owners to apply for a T$30,000 subsidy to replace 10-year-old cars. The measure, effective from the beginning of 2009, supports the official policy to boost the sagging domestic auto market and reduce carbon emissions.

Reactions: Like Like:
1


----------



## Pk_Thunder

* Pakistan looks abroad to boost energy capacity*​
Saturday, June 20, 2009
HONG KONG: Pakistan needs to increase its energy capacity by 10,000 megawatts by 2015 and is hoping foreign investors can help it halt damaging power cuts, the countrys investment minister has said.

Waqar Ahmed Khan said on Friday Pakistan was looking to foreign firms to help it deal with its energy shortfall, which has seen regular outages that have prompted riots in Karachi.

Khan added that Chinese companies had expressed a clear desire to invest in the energy sector, particularly in the provision of hydropower.

Chinese companies are extremely interested in building dams in Pakistan, he told reporters in Hong Kong, after a visit to Shanghai and Beijing.

He said the government would boost capacity by 3,000 megawatts by the end of the year, but demand would remain high. Industry, including the crucial textile sector, has suffered from the inconsistent supply.

Khan is on a foreign tour to try to attract investment into Pakistan, and will also visit Qatar and the United Arab Emirates. He said there were also opportunities for investment in the agriculture, housing, natural resources, IT and infrastructure sectors.

The minister said the vast majority of the country remained safe, despite a seven-week military offensive against the Taliban in the Swat valley. The offensive is in response to suicide attacks in Islamabad since the middle of 2007, which have targeted the Marriott Hotel, the Danish embassy and police checkpoints. Let me assure you that the security situation is much better, he said.

Reactions: Like Like:
1


----------



## Pk_Thunder

*WB to approve $200m for BISP this month*​
Saturday, June 20, 2009
By Mehtab Haider

ISLAMABAD: The World Bank has approved two projects worth $135 million to help Pakistan strengthen its social safety net and eradicate polio.

The WB is also likely to approve another $200 million for the Benazir Income Support Programme (BISP) in the current month, a source told The News on Friday.

Earlier, there were expectations that the World Bank would approve $200 million for the BISP on Friday, but it did not come through because of some procedural delay. It will be approved this month, said an official working for the World Bank in Islamabad.

The official said that the WB would also consider $30 million technical assistance for the Thar coal project by the end of June. This amount will be used for capacity-building and holding seminars to attract investors to take part in the project. Thar has estimated reserves of around 185 billion tons of coal.

However, according to a statement issued by the Bank on Friday, increase in global food and fuel prices and Pakistans ongoing energy crisis have made the countrys poor more vulnerable. Pakistans publicly financed social safety net programmes were limited in their coverage, administration, efficiency and ability to respond to shocks, it said.

The $60 million Pakistan Social Safety Net Technical Assistance project will enhance the operation and management of a nationwide, effective and transparent safety net system for the poor to cushion the negative effects of the food and economic crisis, it said.

The Government of Pakistan is committed to developing a modern social safety net system, said Yusupha Crookes, World Bank Country Director for Pakistan. This project will assist Pakistan in establishing an effective social safety net system that provides poor people with basic income support.

The World Bank also approved $74.68 million to support the governments efforts to eradicate polio. Pakistan has made progress in its efforts to eradicate polio since 1997, with the number of confirmed polio cases decreasing substantially from around 1,147 in 1997 to 32 in 2007. However, in 2008 there was an increase in virus transmission with 117 cases reported across all four provinces.

The Third Partnership for Polio Eradication Project, which is part of the Global Polio Eradication Initiative (GPEI), will help Pakistan move towards eradicating the disease from its territory by ensuring timely supply and effective use of Oral Polio Vaccines (OPV), targeting children less than five years of age.

The credit for polio eradication is a performance-based credit with an option to be converted into a grant on successful achievement of project objectives. Once the objectives are achieved, repayment of the credit will be undertaken by buy-down partners, including the Bill and Melinda Gates Foundation and the United Nations Foundation.

The credits from the International Development Association (IDA), the World Banks concessionary lending arm, carry a 0.75 per cent service fee, a 10-year grace period, and a maturity of 35 years.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Rs 24 billion paper guarantees to be floated to bail out oil and power sectors*​
ZAFAR BHUTTA
ISLAMABAD (June 21 2009): The government has decided to bailout budgetary imbalances of the oil and power sector due to circular debt by floating Rs 24 billion paper guarantees by the Finance Ministry next week, it is reliably learnt on Saturday. The Finance Ministry has calculated that the total accumulated impact of this paper injection would be Rs 79 billion in terms of circular debt reduction.

The Finance Ministry revealed that main advantage of the exercise is that cash transfers were not involved and only book adjustments would be made in the accounts, said the sources. The sources said that the main beneficiary of the process would be state-owned oil marketing company Pakistan State Oil (PSO), which fearing that its LCs might default due to liquidity problem had recently sought the SOS from the government.

The sources in the Finance Ministry revealed to Business Recorder that the process would start from Pakistan Electric Power Company (Pepco) that would pay to electricity producers after keeping their margins. In return, the electricity producers would pay to the furnace oil suppliers and the last end of the chain would be oil and gas producers.

The sources said in the end, state owned exploration companies, OGDCL and PPL would transfer the equivalent amount of their dividends to the government. They said the Finance Ministry had agreed to inject Rs 24 billion in the balance sheet of power sector to be initiated from the Pepco and the process would continue to reduce circular debt.

The sources further said that the state guarantees were expected to be launched early next week, and the process was expected to be completed within the week, as the companies would be deciding dividends at the end of fiscal year.

"The government plans to inject some cash in the system in the first quarter of the next fiscal to improve the financial health of power sector and the PSO, and the sources hoped that reduction of subsidies on electricity from July were likely to bring liquidity in the power sector.

The Finance Ministry decided to carry out the exercise as the PSO had requested the government to make immediate release of Rs 50 billion to ease its financial situation for continuing fuel supply in the country, said the sources. Earlier, the PSO management requested the Petroleum and other concerned ministries for immediate release of Rs 30 billion that was not entertained due to reluctance of the Finance Ministry.

The PSO dues against different clients have piled up to Rs 83.6 billion, putting heavy burden on the state-run marketing company. The PSO is the major supplier of furnace oil to power sector that is to recover Rs 20.823 billion from Water and Power Development Authority (Wapda); Rs 33.252 billion from Hubco; Rs 21.203 billion from Kapco; and Rs 2.736 billion from PIA.

The PSO is to recover Rs 5.092 price differential claims (PDCs) on petroleum products from the government. Owing to non-payment of dues from the power sector, the PSO has defaulted to oil refineries and it is getting problems to get fuel supply from them. The PSO is to pay Rs 62.126 billion to the oil refineries - Rs 30.221 billion to Parco; Rs 9.612 billion to PRL; Rs 9.187 billion to ARL; Rs 8.059 billion to NRL; and Rs 5.047 billion to Bosicor.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Pakistan has good investment prospects: Dutch envoy*​
KARACHI (June 21 2009): The Netherlands is the fourth largest EU investor in Pakistan, despite being a small country with a population of only 16 million people. This was said by Marc Mazairac, Deputy Head of Economic Affairs of the Embassy of the Kingdom of the Netherlands at an informal meeting with the media in Karachi.

Trade relations between Pakistan and the Netherlands are more than six decades old, and the Netherlands is very much involved in Pakistan's economic activities be it in the shape of the ABN Amro bank or the pharmaceuticals giant ICI. The Dutch business sector has had very active relations with traders of this region since 1930s and the Dutch flag carrier KLM was flying to Karachi since the 1930s before it stopped operations to Pakistan recently.

Mazairac said the Netherlands viewed Pakistan as a country with very good prospects because Pakistan is strategically located in a region between two booming economic giants China and India. The Dutch envoy was of the opinion that Pakistan should exploit it geo strategic position between these two giants to promote trade in the region.-PR

Reactions: Like Like:
1


----------



## Pk_Thunder

*EU assured 100 million euros support for Pakistan: Zardari*​
KARACHI (June 21 2009): President Asif Ali Zardari has said that European Union responded in "a very positive manner" and assured Pakistan financial support of 100 million euros. Addressing a meeting on Saturday at Bilawal House here, the President, who returned on Friday from Brussels after leading Pakistan's delegation at first ever Pakistan-EU Summit, said that European countries would also import fish in large quantities from Pakistan.

The meeting, attended by Sindh Chief Minister Qaim Ali Shah, provincial ministers and senior officials, lauded the untiring efforts of the President due to which Pakistan is getting full co-operation of international community on various issues.

Reviewing the ongoing and proposed development projects in the province, the President directed Sindh government that the scheme regarding land distribution among landless haris, especially women, should be treated as a special project.

He also directed that Sindh government and Agriculture Development Bank should work together to make the project a success. Tractors should be provided, land being given to landless haris must be fertile, with all necessary facilities, and women should be major beneficiaries.

The meeting discussed Keti Bunder, Katchi Abadis, Thar coal, Gorakh Hill, and RBOD issues. The President directed that no watercourse should be provided without lining. Provincial Irrigation Minister said that hydrological and geotechnical studies of Baran Dam would be completed soon, and work would start in the next few months.

The President called for starting work on dams, and introduction of drip and sprinkle irrigation system to make maximum use of water. He asked the officials to chalk out plan for treatment of TBOD water to make it usable and supply to people of coastal areas. He was told of road construction from Karachi to Keenjhar in public-private partnership. Projects in Nau Dero and Benazirabad were also discussed.

APP adds: President Asif Ali Zardari has expressed concern over the slow progress in the completion of several development projects in Sindh and asked the authorities to complete these schemes at the earliest.

This was stated by Sindh Information Minister Shazia Marri while briefing newsmen about the decisions of a meeting, which reviewed the progress on various development schemes underway in the province at Bilawal House here on Saturday.

President Zardari chaired the meeting which was also attended by Sindh Chief Minister Syed Qaim Ali Shah and provincial ministers and high officials.

"We need to deliver the benefits of these development schemes to the people of Sindh as soon as possible", he noted. The President said that the elected government had completed one year in the office and development schemes should be completed with focussed approach and on faster speed, Marri said.

He agreed that although the government was facing so many challenges, it should not affect the pace of work on development schemes. Expressing dissatisfaction over the progress of these schemes, he said that the pace of work was slow. The speed is missing. Expedite the pace and complete them on fast track basis, he asserted.

"I have been visiting here frequently and reviewing the progress of these projects, yet I do not see a speed which is required", he noted. Referring to the development of two recreational resorts in Sindh, Gorakh Hill and Keenjhar Lake, the Minister said that the president has issued orders to complete these projects as soon as possible.

President asked the government to complete the repair work on Karachi-Keenjhar Road on fast track basis under public-private partnership. She said that President Zardari has also asked the provincial government to also focus on Bhambore project which is a historical site.

Marri said that President Zardari has ordered the authorities to ensure that fertile land is allotted to women folk under land grant policy where 70 percent of this land would be provided to women peasants.

This project should be treated as special project and the allotted land should have all the required qualities. Also ensure that these landless women peasants also get other facilities including farm credit from Zarai Tarraqiati Bank of Pakistan (ZTBL) as well as tractors, he said.

Ms Marri said that the President has also asked Sindh Government to treat Lyari development as special project and develop fisheries sector to boost country's seafood exports.

Earlier, the president was briefed about the water reservoirs and dams by provincial Minister Syed Murad Ali Shah who said that work on Barani Dam would begin in next few months. He was told that hydrological and geo-technical reports about these dams were completed.

Shazia Marri said that the president instructed the concerned department to expedite work on the dams. He also directed to adopt sprinkles and drip irrigation system to conserve water and get maximum results in crop cultivation.

She said that the president has also instructed to ensure that only lined water courses are handed over to farmers. President Zardari also asked experts to prepare a study for treatment of water discharged in right bank drain outfall (RBDO) so that it can converted for potable use.

He said that people of coastal areas specially Badin area are deprived of fresh water and if this water can be converted into drinkable water through treatment. He also underlined the need for the lining of canals to save irrigation water.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Pakistan and China ECG to meet in August*​
BEIJING (June 21 2009): The Economic Co-operation Group (ECG) of Pakistan and China for the implementation of Joint Five Year Programme for Trade and Economic Co-operation will be held in coming August. The two sides also agreed to convene Joint Economic Commission meeting in near future. The decision to this effect has been taken in a meeting held between Secretary General to the President of Pakistan Salman Faruqui and Chinese Vice Minister for Commerce (MOFCOM) Chen Jian.

During the meeting both sides also reviewed whole range of bilateral economic, commercial and trade relations between the two countries. The Secretary General underlined that the President of Pakistan, Asif Ali Zardari has sent him to China to expedite all economic projects currently under implementation between the two countries. He highlighted that the President Zardari accords highest importance to the economic development of Pakistan.

He stated that President of Pakistan is keenly interested in the development of energy, housing, infrastructure development, small and medium sized dams, water conservancy and water reservoirs in all the four provinces, as well as agriculture, hybrid seeds and social sector development. Faruqui mentioned that despite tremendous difficulties, Pakistani economy had recovered noticeably since the present democratic government took charge of the affairs.

The Chinese Vice Minister (MOFCOM) said that Pakistan and China were 'all-weather friends', close associates and intimate partners. He reiterated Chinese government's commitment to extend all sorts of assistance and co-operation to Pakistan.

Reactions: Like Like:
1


----------



## Pk_Thunder

*Rate cut hopes, US aid help recover losses on KSE*​
Sunday, June 21, 2009
By our correspondent

KARACHI: Strong signs of a reduction in interest rate in near future and news from Washington to triple non-military aid to Pakistan compensated the negative impact of the 2009-10 budget for the Karachi bourse during the week ended on June 19.

The market, however, ended the week with modest losses. The KSE 100-share index fell by 16.58 points or 0.23 per cent and closed at 7,039.73 points. The parallel-running junior 30-index, which is based on free-float market capitalisation, also fell by 70.82 points or 0.94 per cent and ended the week at 7,448.03 points. Only one session during the week i.e. on Wednesday closed on a positive note. On that day, the benchmark 100-index rose by 202.97 points or 2.95 per cent on news of a 100 basis point cut in the yield of 12-month treasury bills auctioned by the State Bank of Pakistan. Cut in the T-bills yield is a strong sign of expected reduction in interest rates, experts said and added if that happens it will prove healthy for the stock markets.

Moreover, the same days (Wednesday) newspapers flashed news from Washington that its senate committee on foreign relations has unanimously passed the bill aiming at tripling non-military aid to Pakistan to $7.5 billion. This aid would be granted to Pakistan in the next five years after the approval of full senate.

This news also helped to revive bullish sentiments in the market, as this aid is believed to greatly help Pakistan manage its badly hit economic affairs, they added. The first two sessions of the week (Monday & Tuesday) reacted negatively to the shocking budget, which was presented on last Saturday for the next fiscal year 2010.

The budget was termed an anti-business, trade and industrial activities, which the adviser to the PM on finance has agreed to rectify on next Monday, June 22. The first reaction to the budget, however, forced investors to take an exit at the current levels, an analyst commented. Under the uncertain economic outlook, therefore, the two last sessions of the week (Thursday & Friday) also closed under the selling pressure, but did not incur heavy loss. The cumulative losses of all four negative closing sessions of the week together stood at 219.55 points.

Owing to the proposed imposition of 16 per cent Federal Exercise Duty (FED) on the services provide by the stock brokers under Value Added Tax (VAT) regime, the daily turnover decreased to three month low at 64.4 million shares in a single session on Tuesday.

Moreover, the average daily turnover of the week slashed down by about 20 per cent on week-on-week basis to 101.6 million shares against 126.6 million shares changed hands last week. On the contrary, the overall market capitalisation luckily steadied by Rs6 billion to stand at Rs2,088 billion.

This also included an inflow of Rs105.9 million (i.e. $1.3 million) from overseas investors recorded this week. The most active stocks of the week remained the same as were last week.

The only one difference between the two weeks was that investors had injected funds due to the hope for witnessing a business friendly budget in last pre-budget week and disinvested in first post-budget week. Those leading stocks were from cement and textile sectors, followed by the securities companies, bank, telecom and fertilizer sectors. Selective stocks on the anticipated buying by foreigners, however, managed to close on positive note. Gul-e-Zehra Jafri at KASB Securities suggested that the forthcoming meeting of government high officials with the IMF team has been scheduled for June 28; rectification of anomalies pointed out in the budget and finance bill for 2010; and the July monetary policy announcement by the central bank should be kept in the close focus. Decision in three events would impact the market in some ways.

Movement in weekly volume leaders

Symbols Opening on Close on Difference

Monday (Rs) Friday (Rs) (Rs)

AH Securities 27.45 28.72 1.27

Azgard Nine 23.78 21.89 -1.89

DGK Cement 28.37 27.69 -0.68

JS Company 25.27 24.5 -0.77

Lucky Cement 57.24 57.21 -0.03

MCB Bank 148.57 142.06 -6.51

National Bank 60.97 64.85 3.88

Nishat Mills 40.87 36.96 -3.91

OGDC 73.12 75.42 2.3

PTCL 15.47 16.53 1.06

Reactions: Like Like:
1


----------



## Pk_Thunder

*Pakistan has vast potential for carbon credit*​
Sunday, June 21, 2009
ISLAMABAD: Pakistan has vast potential for carbon credit in sugar and cement industries and the ministry of environment is making all possible efforts to realise this potential.

Being a party to Kyoto Protocol, Pakistan is eligible to benefit from the projects under Clean Development Mechanism (CDM) and exploring carbon credit potential in different industries.

The ministry of environment is the Designated National Authority for CDM in Pakistan and has a mandate to raise awareness and encourage potential partners to benefit from opportunities in CDM.

The ministry has also identified tremendous potential of CDM in sugar industry in the processes like ethanol production, process and boiler efficiency, co-generation, composting, waste heat recovery, generator replacement and fuel switching, which can be tapped to gain additional revenues by generating carbon credit.

This also helps in addressing environmental and social development values and a number of CDM projects are already being developed in these sectors. The ministry has also established a CDM Cell to explore the carbon credit potential and the cell frequently interacts with industrialists.

The cell has also organised workshops on Carbon Credits Potential in Industry where experts deliberated on ways and means to benefit from the global carbon credit initiative.

These workshops brought together environmentalists, industrialists and investors who would be focusing on this area as countries such as India, China and Brazil are already earning millions of dollars through carbon credit.

Reactions: Like Like:
1


----------



## opinion786

View budget details and give valuable input and observations:

Budget 2009-10 Economic Pakistan


----------



## Neo

*Pakistan may buy BT cotton seed worth $1bn​*Tuesday, June 23, 2009

KARACHI: The country has finalised issues in its negotiations with Monsanto about growing BT cotton which is expected to increase the yield by 40 per cent.

Last year, around 28 per cent land was cultivated with BT cotton, but this year our target is 60 per cent, Textiles Adviser Dr Mirza Ikhtiar Baig told The News. There are also arrangements to produce BT seeds locally, and the Economic Coordination Committee (ECC) has approved growing BT cotton to increase production, he said. Pakistan is in the process of signing a $1bn agreement for the purchase of BT cotton seed from Monsanto, a seed developing company of the United States, with a view to increasing cotton production by 40 per cent.

However, it has not been agreed so far how much quantity the country would purchase. BT (Bacillus thuringiensis) is a live microorganism that kills unwanted insects from forests and agriculture crops. Provided in cotton seed, it boosts the yield and protects the crop from most of the pests. Currently, farmers are using BT cotton seed on around 2.7 million acres of land against total cultivation of over eight million acres in the country.

BT cotton seed being sold in the country was smuggled and therefore illegal, said the textile adviser. BT cotton seed being produced and consumed in Pakistan is from its first generation and plant insects can develop resistance power against it. Experts say once BT cotton lost its resistance, the insect could damage the crop and the seed itself.

BT cotton seed requires continuous improvement in order to cope with growing immune power of insects. French expert Pierre Louis Dupont, who has around 20 years of experience in cotton seed development, was offered to become Pakistans consultant in its negotiations with Monsanto. Dupont, in an interview with The News, said there was a need to supply second generation BT cotton seed with weed control capability. With the use of BT cotton seed, he said, yield could be increased by 40 per cent.

India has boosted its cotton production to 30 million bales from 18 million. Pakistan can increase it to around 18 million bales from the current 12 million. The textile adviser said they were going to improve the supply chain. In the last couple of years, cotton production was low and industrialists suffered due to imports.

Our requirement is 16 million bales but production was nearly 12 million bales. Thus, import reaches around 4 million bales. We can save $5 billion annually by increasing the yield, Baig said. We can negotiate a package with Monsanto to get more effective results.

The package includes latest BT cotton seed with weed control technology called Bollguard II with round-up ready flex, which would save up to $250 million spent on pest control. According to preliminary talks with the company, it would charge $21 or Rs1,680 for sowing BT seeds over one acre.

Of that amount, the company would return $4.2 or Rs336 to the farmer for research purpose. I wish this experience should have been done in 1996 like India did and we would have saved billions of rupees, said Dr Baig opposing usage of smuggled BT cotton seed.

It can change the destiny of the nation either way. Growers have also welcomed the decision but have some reservations about seed distribution. Farmers Association of Pakistans Director Brigadier (retired) Rasheed Baig said it was good to import hybrid seeds.

However, he asked what guarantees the government would give to the farmers if pests attacked the crop and how the government would ensure the seeds availability at controlled rates. A grower of BT cotton in Mianwali (Punjab), Khan Ameer Azam, supported the import of Bollguard II, saying if weeds, which swallowed around 25 per cent of fertiliser, were removed it would boost cotton production.

In Punjab and Sindh, he said, around 75 per cent of land was already cultivated with BT cotton, but imports at the government level would be fine. He also expressed reservations about possible black-marketing of the seed.


----------



## Neo

*Rupee fall never helped increase exports: study​*Tuesday, June 23, 2009

LAHORE: Decline in rupee value has always played havoc with the economy as it has never helped increase exports but added to the debt burden and discouraged foreign direct investment in the country.

Adviser to the Prime Minister on Finance Shaukat Tarin and former federal finance minister Dr Salman Shah at a recent debate on the budget differed on the impact of rupee depreciation on economy. Tarin insisted it boosts exports while Shah argued it was injurious to exports in the long run and the economy as a whole.

A study by The News reveals Pakistans exports stagnate after depreciation and registers a healthy increase when the rupee is stable and that also attracts higher foreign direct investment.

The most massive devaluation was done in the decade of 90s when the rupee fell from Rs27 to a dollar to Rs54 by the time the Nawaz government was thrown in October 1999. Despite this massive devaluation, exports inched up from $7 billion in 1990-91 to $8.1 billion in 1999-00.

Exports started picking up after 2002-03 as the rupee moved towards stability. On June 22, 2001 the rupee was valued at Rs66.69 against the dollar while exports totalled $9.14 billion in 2001-02. The rupee appreciated against the greenback next year and by June 22, 2002 the rupee was valued at Rs60.24 to a dollar. However, that increase in the rupee value did not impact exports which rose to $10.88 billion in 2002-03.

The value of the rupee increased again next year and on June 22, 2003 the dollar was valued at Rs57.80. Exports in 2003-04, however, rose to $12.39 billion. Next year, the rupee remained stable at Rs57.90, but exports continued rising and reached $14.48 billion in 2004-05.

In 2005, the rupee depreciated by less than five per cent to reach Rs59.76 on June 22 and exports increased to $16.55 billion in 2005-06. The rupee remained stable next year as on June 22, 2006 it stood at Rs59.98 to a dollar while exports rose to $17.27 billion in 2006-07. Then the rupee fell to Rs60.77 and exports rose to $20.42 billion in 2007-08.

In 2008, the rupee value was Rs67.51 to a dollar on June 22 and by the second quarter of that fiscal year it crossed Rs80. It is currently valued at Rs81.28. Exports in the first 11 months of 2008-09 stood at $17.47 billion and in all probability these are expected to decline by five per cent despite a massive depreciation of the rupee.

The weakened rupee has also increased the burden of servicing foreign loans. In June 2007, the dollar was valued at Rs60.77 and at that value the current foreign debt of $51 billion would have amounted to Rs3,099 billion. However, owing to the current rupee-dollar parity of Rs81.28, the debt has grown to Rs4,145 billion.

In other words, debt burden has mounted by Rs1,040 billion in terms of local currency just because of the massive depreciation of the rupee. Foreign investors, who invested during the period of stability for the rupee during 2002 to 2007, are also in a fix. Now they have to earn 25 to 26 per cent more on their investment to remit the same amount of dollars that they sent about three years ago. This is the reason for increase in rates of multinational corporations.

Since Pakistan is an importer of commodities like crude oil, edible oil , industrial raw material and chemicals and its imports are almost double than its exports, the depreciation of the rupee also fuels inflation in the country.


----------



## Neo

*Cement exports rise to $750 million​*Tuesday, June 23, 2009

ISLAMABAD: The cement industry, despite being affected by the global economic crisis, has managed to boost exports to $750 million in fiscal year 2008-09.

Being an irregular sector if compared with textile, the cement industry increased exports to $750 million, a senior official at the Ministry of Industries told The News. Though the industry has been given relief of Rs200 per ton in central excise duty, it is to be fully passed on to end-consumers. This means the price of a cement bag will fall by Rs10 from July 1.

Before the budget relief, the cement industry was paying Rs900 as central excise duty which has been reduced to Rs700 per ton. Despite a cut in the Public Sector Development Programme to just Rs219 billion owing to which domestic cement consumption has dropped sharply, the industry has performed well in foreign markets in these times of worldwide recession.

The official said the government has extended Rs40 billion to the textile industry as research and development support, but other sectors like cement, which has fared well, were given no further relief in duty drawback for exports. The official said that in 1997, the Nawaz government had provided duty drawback of Rs24 per ton on exports but its impact has now become negligible keeping in view general sales tax on limestone, 30 per cent depreciation in currency and transportation charges to the port city of Karachi. Eighty-five per cent cement production is being done in northern parts of the country.

When contacted, All Pakistan Cement Manufacturers Association General Chairman (Retd) Rehmat said that land transportation cost and port handling charges stand at $25 per ton and if the duty drawback facility is enhanced to Rs120 per ton ($1.5), exports will easily increase to $1.5 billion.

Rehmat said that the government collects Rs30 billion as revenue from the cement industry, but if the duty drawback of Rs24 per ton is not increased then the cement industry may lose its foreign market.

To a question, he said that if the government edges up the duty drawback facility, the government will absorb a hit of Rs1.2 billion per annum through guaranteed Rs29 billion revenues in return. Now the ball is in governments court.

To a question, he said that Pakistan has explored the markets of Afghanistan, Iraq, Sri Lanka, India and Sudan. He said more orders from Sri Lanka are on the cards in the next financial year as the Lankan government wants to build infrastructure which was destroyed in the civil war with Tamil Tigers. Since the war is over, Pakistans cement industry will have more orders from Sri Lanka. He said that if the government remains stuck to next years PSDP, then the cement consumption would also enhance manifold if kept in view the construction of Diamer Bhasha dam, Neelum-Jhelum hydropower project and many other national highways. To a question he said that cement production capacity has increased to 43 million tons from 10 million tons in 2003-04 with huge investment of Rs200 billion.


----------



## Neo

*Govt plans to add 2,845MW electricity by December 2009​*
ISLAMABAD: To ensure smooth supply of power, the government plans to generate 2845 MW power till December 2009, sources told Daily Times Monday.

The power generation schedule for the current year consists of 6 projects based on oil/gas, which would generate 1304 MW power and 13 rental projects would generate 1541 MW.

According to schedule, the Atlas Power Project has to complete in June with total cost of $227 million that would generate 225 MW and using oil as fuel.

Orient Power Project to be completed by July 2009 with cost of $170 million would help in generation of 225 MW and it would use both oil/gas as fuel.

The sources said the Fauji Mari Power Project would be completed by September this year with cost of $217 million and would generate 202 MW by using gas as fuel.

About 200 MW power generation capacity would be added to the system from completion of Nishat Power Project with total cost of $204 million. It would use oil as fuel.

The oil/gas based Muridke (Sapphire) Power Project would be completed by Oct 2009, and would generate 225 MW power with total cost of $169 million. The gas base Engro Power Project would be completed by Dec 2009 with generation capacity of 227 MW. It would cost the government $205 million.

In the annual budget 2009-10, the government proposed the allocation of Rs139.20 billion for the power sector, which would focus on improving infrastructure, system modernization and up-gradation of the power transmission network.

The government had fixed a target of 3,858 MW for enhancing power generation during the fiscal year 2009-10. The sources claimed that there was also a possibility that the government might import electricity from regional countries and fill the power shortfall in near future.

Notwithstanding the systemic issues such as the failure to build new dams and previous governments inability to add even a single megawatt of new power to the grid during nine years of its rule, it seemed that the present crisis was a result of bad management and the lack of foresightness.

The demand for electricity in Pakistan during the winter months actually goes down and this winter has not been an exception. Throughout the month of December, the electricity consumption in Pakistan hovered around 11,000 MW, down from the peak levels of 17,500 MW seen in summer.


----------



## Neo

*Gilani seeks access to civilian N-technology​*
** PM says nuclear programme purely of defensive nature, wont be slowed down
* Pakistan wants peaceful co-existence with neighbours​*
LAHORE: Prime Minister Yousuf Raza Gilani on Monday asked the United States to abandon the double standards in its policy on civilian nuclear technology and offer the facility to Pakistan in the same way it did to India.

Gilani was talking to reporters after addressing a gathering of scientists at the 34th International Nathiagali Summer College on Physics and Contemporary Needs at the Quaid-e-Azam University.

Defence: He said the countrys nuclear programme was a purely defensive measure and essential for national security.

Pakistans nuclear programme is defence-oriented and peaceful, he said.

Gilani said there was no question of slowing down the nuclear programme. We are using it to meet our needs ... and cannot even think of slowing it down, the prime minister said.

Existence: He said the country had no aggressive designs against any other state and wanted peaceful co-existence with all its neighbours. Reiterating that the nuclear programme was purely for defence purposes, Gilani said, Pakistan could not afford to remain oblivious to this ominous development and grave threat to its security. Pakistan had to opt for developing a matching response to the Indian nuclear threat, he said.

The prime minister said the countrys emphasis on nuclear power for meeting its energy needs was realigned after India conducted tests in 1974.

However, the prime minister said, the international community had failed to take into account Pakistans concern for security and adopted discriminatory policies towards the country in the form of political and diplomatic pressures and economic sanctions.

Gilani supported non-proliferation, saying developing and small nations must be given access to the nuclear energy for civilian purposes. daily times monitor/mahtab bashir


----------



## Neo

*US FDI totals $ 1.3bn during 2007-08: Patterson​*
KARACHI (June 23, 2009): US Ambassador in Pakistan Anne W Patterson said Tuesday that US foreign direct investment (FDI) in Pakistan during fiscal year 2007-08 totalled $ 1.3 billion.

"In the first nine months of current fiscal year, the US investment has touched $ 705 million with several multi-million dollars in the pipeline", she said while speaking at the inauguration of new secretariat of American Business Council.

The Ambassador said that USA was the single largest investor in Pakistan and she was encouraging other US investors to grab investment opportunities in Pakistan and one of such investor from Oklahoma has just invested $ 100 million and doing business here for a long time.

We want to also encouraging Pakistanis living United States to invest in Pakistan, she added.

Patterson said that USA was the largest trade partner of Pakistan with a total volume of $ 5.6 billion which is 25 percent of Pakistan's total world trade.

USA imported merchandise worth $ 3.6 billion and exported goods worth $ 2 billion during 2008, she noted.

She said that USA working to develop reconstruction opportunity zones (ROZs) in border areas of Pakistan to provide employment to those people who desperately need jobs.

Besides, setting up manufacturing units, the United States will also undertake infrastructure development projects under ROZs, she added.

Patterson said that she was optimistic about the realization of ROZs and the bill has been passed about ten days ago.

"This is now being introduced in the US Senate. There were differences between the Senate and the House. Believe me members of Obama administration have been working very hard to get this passed in both houses. Then it will go to Commerce Committee. I am very optimistic that this will move quickly since it has been passed from the Congress", she said.

She agreed that (the delay) was a big disappointment for United States.

She said that USA was also trying to encourage intra-regional trade in the region and capitalise the dynamic potential for expanding trade. This will bring in more jobs for exporters and importers and manufacturers in the region.

The USA was also encouraging to develop logistics between Karachi sea Port and Central Asian markets to reduce cost of doing business in Pakistan.

Earlier, president ABC Asif Jooma briefed the importance of new secretariat and said that the number of ABC members will soon grow from 66 to 70.

He said that ABC has developed an in-house think tank facility to guide the government on investment policies and what foreign investors would need in future.


----------



## Neo

*'West owes sustained economic support to Pakistan'​*
WASHINGTON (June 23 2009): Advocating the critical importance of democracy and economic development to defeating terrorists, President Asif Ali Zardari on Monday asked the international community, particularly the Western powers, to support Pakistan with immediate assistance as well as expanded trade to help it address challenges of global implications.

The president underlined the urgency to back Pakistani anti-terror effort with a 'robust economic package' to help the democratic government deliver for its millions of displaced people from Swat and other north-western valleys. In an opinion piece in The Washington Post, Zardari called the internally displaced persons as the latest victims of terror that has afflicted the country in recent years.

'In the battle against international terrorism, we are in the trenches for ourselves but also for the world. We have lost more soldiers, 1,200 of them, fighting the Taliban in Pakistan than all of the countries of Nato have lost, combined, fighting the Taliban in Afghanistan. Thousands of civilians, victims of attacks such as the recent bombing of the Pearl Continental Hotel in Peshawar, have died," he wrote.

At a personal level, Zardari said, 'I lost my wife (former prime minister) Benazir Bhutto, the mother of my children and Pakistan's greatest leader.' He appreciated the expression of support by President Barack Obama's administration but said the European economic powers must join the effort to back Pakistan's crucial struggle against militancy.

'We need immediate assistance. The Obama administration recognises that only an economically viable Pakistan can contain the terrorist menace.' In this respect, Zardari noted that the United States has committed $1.5 billion a year for five years to help stabilise Pakistan's economy, and the House of Representatives and the Senate Foreign Relations Committee have acted decisively to reorient the Pakistani-American relationship towards not just a military alliance but a sustained economic partnership.

'Now, the rest of the world must step up and match the US effort. Pakistan needs a robust assistance package so that we can deliver for the people and defeat the militants. And the rest of the world should again follow the American lead in helping us deal with the millions of internally displaced people who are the most recent victims of terrorism in our nation.'

Concurrently, he underscored, the rich Western countries must give greater access to Pakistani trade and launch preferential trade programmes for it. 'But aid is not enough. In the long term, Pakistan needs trade to allow us to become economically independent.' 'Only such an economically robust Pakistan will be able to contain the fanatics and demonstrate to the 1.5 billion Muslims world-wide that democracy and economic development go hand in hand.'

He applauded the United States' initiative to move forward with the preferential trade program called economic opportunity zones in Afghanistan and the Federally Administered Tribal Areas region of Pakistan. The programme, he said, will remove trade barriers and provide economic incentives to build factories, start industries, employ workers-and give hope to the people.

'This opportunity zone concept should be a model to Europe, as well. Europe must realise that it is in its own self-interest, as the United States has realised, to do everything possible to grow the Pakistani economy and to provide incentives for Pakistani exports to the continent.'

The president faulted the Western capitals for supporting Pakistani dictators in the past at the cost damage to democracy. 'The West, most notably the United States, has been all too willing to dance with dictators in pursuit of perceived short-term goals. The litany of these policies and their consequences clutter the earth, from the Marcos regime in the Philippines, to the Shah in Iran, to Mohammed Zia ul-Haq and Pervez Musharraf in Pakistan.

The West stood by as a democratically elected government was toppled by a military dictatorship in the late '70s. Because of the Soviet invasion of Afghanistan, the West used my nation as a blunt instrument of the Cold War. It empowered a General Zia dictatorship that brutalised the people, decimated our political parties, murdered the prime minister who had founded Pakistan's largest political party, and destroyed the press and civil society.

And once the Soviets were defeated, the Americans took the next bus out of town, leaving behind a political vacuum that ultimately led to Talibanisation and radicalisation of Afghanistan, the birth of al Qaeda and the current jihadist insurrection in Pakistan.'

He pointed out the problems created by the heroin mafia, which arose as a consequence of the efforts to implode the Soviet Union and said it now takes in $5 billion a year, twice the budget of our army and police. This is the price Pakistan continues to pay.

"Dancing with dictators never pays off. Frankly, the worst democracy is better than any dictatorship. Dictatorship leads to frustration, extremism and terrorism. But the past is the past, and we can't undo it. We can, however, address the consequences of past mistakes and make sure they are not repeated." 'My wife travelled the world preaching democracy to what should have been its loudest choir.

The doors of many Western governments were shut to her, but she was not deterred. She was relentless in her passion for democracy, and unwaveringly optimistic about its ultimate success". She said, famously, that "truth, justice and the forces of history are on our side.'

'Today, we shall see if America and Europe are on our side as well.' Zardari contrasted the challenges of extremism with some other recent conflicts and said after the debacle of Vietnam, the United States could pack up and leave with minimal consequences for its genuine national interests; similarly, for the British in the subcontinent and the French in Algeria.


----------



## Neo

*2009-10 projects: Pakistan to get Rs 519 billion foreign loans, grants​* 
KARACHI (June 23 2009): Pakistan will acquire over Rs 519 billion foreign assistance in the shape of loans and grants for the next fiscal year from international finance institutions and different countries to run its development and non-development program smoothly, Sources told Business Recorder on Monday. They said that every year the government seeks huge foreign assistance to run its development and non-development program without financial hurdles.

"However, for the next fiscal year (2009-10) the federal government is relying more on foreign assistance due to high expenditure and less revenue," they added. They said that the government would be compelled to cut the ever highest Rs 646 billion Public Sector Development Program (PSDP) for next fiscal year if it failed to meet the target of estimated foreign assistance for development and non-development programs.

"Increase in budget deficit would be another option," they added. Sources said that delay in foreign inflows would also raise the pressure on the rupee against dollar. They said that Finance Division has estimated overall Rs 519.704 billion loans and grants (about $6.4 billion at Rs 80 per dollar exchange rate) from external sources, which is Rs 219.313 billion higher than the budget estimates of current fiscal year 2008-09. They said that estimated loans and grants by Finance Ministry for fiscal year 2009-10 are about 73 percent higher than current fiscal year.

For the current fiscal year the ministry had estimated Rs 300.319 billion inflows, while the estimated loans and grants were 39 percent higher than the revised estimates of Rs 374.497 billion for current fiscal year. Planned and non-plan assistance through external resources for development and non-development programs comprise Rs 444 billion loans and Rs 67 billion grants. External loan estimates for development and non-development expenditures stand at Rs 452.450 billion for next fiscal year against Rs 283.776 billion for the current fiscal year, depicting an increase of 59 percent.

Revenue estimates through external grants depict an increase of 310 percent to Rs 67.254 billion in fiscal year 2010 against Rs 16.393 billion in fiscal year 2009. Overall foreign assistance for the next fiscal year comprises by planned resources Rs 510.413 billion and non-planned resources Rs 9.291 billion. Project aid for federal departments is Rs 85.86 billion; Rs 26.923 billion for provinces; Rs 150.645 billion for commodity; Rs 16.385 billion for Wapda; and Rs 10 billion for National Highway Authority.

Under plan resources Asian Development Bank would provide Rs 140.954 billion grants and loans; Australia Rs 1.79 billion; China Rs 12.293 billion; European Union Rs 1.092 billion; European Commission Rs 8.027 billion; Eurobond Rs 41.250 billion; Germany Rs 5.66 billion; France Rs 8.9 billion; International Bank for Reconstruction and Development (World Bank) Rs 2.9 billion; International Development Association Rs 49.96 billion; Islamic Development Bank Rs 59.28 billion; and Iran Rs 10.89 billion.

Italy would provide Rs 4.71 billion as loans and grants under plan resources; International Fund for Agriculture Development Rs 950 million; Japan Rs 41.307 billion; Korea Rs 7.93 billion; Kuwait Rs 3.831 billion; Norway Rs 50 million; Netherlands Rs 2.64 billion; New Zealand Rs 18.9 million; Saudi Arabia Rs 34.88 billion; Spain Rs 872 million; Sweden Rs 165 million; Turkey Rs 3.3 billion; UAE Rs 10.39 billion; UK Rs 11.289 billion; United Nation Development Programme Rs 637 million; Uncief Rs 157 million; USA Rs 33.474 billion; World Bank Rs 9.9 billion; World Food Programme Rs 580 million; and Opec would provide Rs 219 million loan in the next fiscal year.


----------



## Neo

*Small, cottage industries in Sindh: Chinese to invest billions of dollars​* 
KARACHI (June 23 2009): Chinese investors will invest billions of dollars in the special industrial zone to promote small and cottage industries in Sindh, it is learnt. Sources said that China Special Industrial Zone at Shahdadpur, district Sanghar, is being developed on the special directives of the President.

They said that agreements had been signed during President's last visit to China, while a group of investors also visited the site a few days back. The industrial zone, spread over 100 acres, would be funded by federal government with 548.347 million within a short span of two years. Sindh Small Industries Corporation would be responsible for project's execution, operation and maintenance, they said."Yes, the PC-1 of the industrial zone has been prepared, and construction of double road from Benazirabad (Nawabshah) airport to the project location is underway at a very fast pace, which would be completed shortly", Secretary, Commerce and Industries, Ali Ahmed Lund, told Business Recorder on Monday.

He said that allotment of land would be made after construction work of road is completed, and added that setting up of small and cottage industries would create employment opportunities for the locals. The Sindh government would earn a remarkable amount in the shape of revenue while the investors would be provided with all basic facilities including potable water, proper drainage system, gas, electricity, etc, he added.

He said that the setting up of special industrial zones in interior parts of the province was aimed at promoting small industries and provide jobs to people of various talukas of district including Jam Nawaz Ali, Sanjhoro, Shahdadpur, Khipro, Sanghar and Tando Adam. Shahdadpur has been selected to provide easy access of industrial zone to the investors by air and road routes, he said.

To a query about which industries are going to be set up at China Special Industrial Zone, he said that industries include cattle feed, poultry farming, hotel, motel, light engineering workshop, milk plant, oil expelling units, flour milling, rice husking, steel door and windows, food industry and agricultural accessories.


----------



## Neo

*Approval of power projects​*
EDITORIAL (June 20 2009): The Economic Co-ordination Committee of the Cabinet in its last meeting approved, among other schemes, "16-20" hydropower projects on River Gilgit as IPPs, aimed at tiding over the country's energy crisis. The meeting has also reviewed the pros and cons of effecting amendments to the 1995 Hydel Policy, and decided that all "actions" thereto might be completed within one month.

We feel that the policy of inducting hydropower IPPs needs to be realistically reviewed as the initiative may not yield the expected results, as has been the case with some thermal power IPPs. It will be recalled that representatives of NWFP and AJK attending a meeting of the Private Power and Infrastructure Board (PPIB) some weeks ago had accused the Board of allocating a majority of the prime locations to IPPs whose performance had not been quite up to the mark.

Secondly, as a result of delayed implementation of projects the sponsors often sought extensions, though all extensions, according to the PPIB chief, have been given strictly in accordance with the provisions of the 2002 Power Policy. Under the 1995 Policy, these hydropower projects fall in the jurisdiction of provincial/AJK governments, and if the provinces feel that the projects are not performing well, these can always be annulled.

Similar reservations have been voiced by representatives of Punjab government as well. In order to resolve the issue the Board has since constituted a tripartite committee, comprising the Wapda chairman, the PPIB Managing Director and representatives of the provincial governments to draft amendments to the 2002 Power Policy, relating to hydropower projects.

The provincial governments are said to be annoyed with the PPIB for neither taking them on board nor allowing them appropriate time for filing their comments on the proposed amendments to the Policy. Secondly, the provinces are keen to be allowed to seek investment directly for hydropower projects, to be executed within their jurisdiction.

Successive power policies prior to 2002 had been formulated primarily for thermal and hydel power generation sectors, but the policies did not address power generation from renewable resources in a substantial manner. As against this, the present policy not only encourages establishment of power capacity based on indigenous resources (hydel, gas and coal); it also seeks to enhance use of non-conventional and renewable sources of energy.

In addition, it emphasises the need for energy conservation and environmental protection. It will be recalled that the decade of the 1990s was crucial with regard to policy developments, focusing on involvement of the private sector in power generation, with the introduction of three distinct power policies, ie, in 1994, 1995 and 1998.

There are basically three issues over which identity of perception needs to be evolved now. One, there is the PPIB's apparent propensity to largely go it alone, and allocate projects to the IPPs of their choice without taking into account reservations of the provincial governments. Two, the provinces are keen to seek investment directly for hydropower projects, to be executed in their jurisdiction, which would give the provinces greater control over implementation of the projects.

And three, repeated extensions sought by project sponsors without there being a cut-off date, which is an essential requirement for a time-bound, cost-effective implementation of projects. All these aspects need to be incorporated in the policy framework. The 2001 policy stipulates that the sponsors will establish captive hydropower units for industry with equity from their own resources or as joint ventures with public sector.

As we have argued in this space earlier, the public sector, with its vast expertise and resources is best suited to carry out hydropower projects. And there is a perception that the performance of hydropower IPPs has not been up to the mark. At best, the government should execute hydropower projects on public-private partnership basis, with the public sector being the main player.


----------



## Neo

*WB refuses to finance Basha dam​*
*Secretary Water and Power Shahid Rafi says ADB has no objection to the project and wants to fund it​*
Wednesday, June 24, 2009
By Khalid Mustafa

ISLAMABAD: The World Bank has refused to finance the Diamer-Basha dam project worth $11.8 billion while saying the site of the dam is controversial between India and Pakistan.

However, the Asian Development Bank (ADB) is ready to fund the mega project but has linked the credit supply with a consensus resolution from the Parliament in favour of the project to ensure that the project is not disputed.

In an exclusive talk with The News, Secretary Water and Power Shahid Rafi said the WB has refused to fund the project saying the site of the project is controversial and India claims the area where the dam proposed is a disputed territory.

According to water expert and former Wapda Chairman Shamsul Mulk, this time the WB excused for funding the project on the plea that the site of the project is controversial, it had not only funded the project of the Mangla dam which was also erected in the area of AJK it was, according to New Delhi, also a disputed territory.

It is pertinent to mention that India also provided the funds for building the Mangla dam, said Mulk.

However, Rafi said the ADB has no objection to the project and is poised to fund it, but the Manila-based bank first wants to make the project undisputed among the stakeholders within the country, that is why it desired the consensus resolution from the parliament in favour of the project.

Pakistan is expecting $5 billion from the ADB, but the bank, which earlier indicated to lend loan amounting to $2.5 billion for the dam, is likely to increase the credit in the range of $3 to $4 billion in the aid memoir, but linked it with certain conditions including seeking of resolution from the parliament in favour of the dam.

He said people of Northern Areas have some objections to the demarcation of the site of the project and claimed that the proposed powerhouse also land is in the Northern Areas, but NWFP claims that the powerhouse is proposed in its jurisdiction.

I have asked Kashmir and Northern Areas secretary to put up the summary seeking the re-demarcation of the site of the project to make every thing transparent.

I want to settle this important issue along with other issues pertaining to the resettlement of the people to be displaced prior to tabling the resolution before the Parliament so that the incumbent regime could not face any sort of embarrassment after passing the resolution in favour of the mega project.

The government has already come up with commitment to initiate a formal work on dam portion of the mega project and allocated over Rs23 billion for next fiscal year.

It is pertinent to mention that the fact finding mission of the ADB in a meeting of official of Economic Affairs Division held on June 5, had conveyed its advice (terms and conditions) to qualify for the aid memoir for the Diamer-Bhasha dam. Wapda Chairman Shakil Durrani was also part of the meeting.

The ADB has also communicated to the EAD top authorities that Pakistan needs to first ensure the other financial resources other than ADBs loan, which is required for completion of the whole project. The bank, the official said, also took up the issue of transmission and distribution system, which will carry the electricity to load centers from the dam, waterside canals, and alignment in Karakorum Highway.

The bank asked for the timely completion of the said projects so that the social benefits and dividends could be reaped on time.


----------



## Neo

*India says no to compensation for blocking Chenab in Aug 08​*
Wednesday, June 24, 2009

ISLAMABAD: New Dehli has refused to extend compensation both in shape of water or in monetary form to Islamabad for the blockade of Chenab river by India in August, 2008 that inflicted huge monetary loss to agrarian economy of Pakistan.

During the three-day dialogue between Pakistan and India at Permanent Commission of Indus Waters (PCIW), held in New Dehli from May 31 to June 2, Islamabad raised the issue of compensation of massive dip in water availability that Pakistan experienced in August 2008 owing to filling of Baglihar hydropower project, but India has turned down any compensation saying that it does not believe the data of Pakistan and argued that water dip that the lower riparian country experienced was not because of the filling of Baglihar project, rather it was because of the hydrological conditions of Chenab river, reveals the document containing the minutes of the Delhi meeting exclusively available with The News.

However, India, the document says, desires to verify the data collected by Pakistan authorities when the River Chenab experienced dip in the month of August 2008.

Syed Jamaat Ali Shah headed Pakistan delegation during the meeting at Permanent Commission of Indus Waters level.

Under the Indus Waters Treaty, India cannot reduce the flow in Chenab River below 55,000 cusecs between 21st June and August 31, 2008, whereas Pakistan had been receiving a discharge of as low as 20,000 cusecs during August-September 2008.

When contacted spokesman of Ministry of Water and Power, Zarar Aslam confirmed that India has refused to compensate Pakistan for the water shortage that the country faced in August 2008 in River Chenab. However, he refused to share the modus operandi that the government will adopt to tackle this issue.

Pakistan Commission of Indus Water Commissioner Syed Jamaat Ali Shah was not available for comments despite many attempts to contact him.

India is currently spending around $200 billion on the construction of water tunnels to the River Indus, which could turn parts of Pakistan barren, a senior official at the Ministry told The News.

According to, Advisor to the Punjab Irrigation Department advisor M H Siddiqui says that Chenab blockade in August 2008 affected over 10 million acres of land in the province and the standing paddy crop in the area suffered losses, as it was the time of maturity and needed the last watering, which could not be completed just because of the blatant violations of Indus Waters Treaty 1960 by India and continuing to fill up the dead shortage of Baglihar HPP beyond August 31, 2008.

The document also reveals that Jammat Ali Shah has sought permission from New Delhi to visit three large hydropower projects that India is constructing at Laddakh Area on River Indus, which is the lifeline of Pakistan. KM


----------



## Neo

*Pakistan may get additional $200m aid​*Wednesday, June 24, 2009

KARACHI: US Ambassador to Pakistan, Anne Patterson informed that an additional $200 million aid assistance for Pakistan, was approved on Tuesday, while at the same time, the US is also working on the $1.5 billion annual financial assistance promised to the country for the next five years.

She further said $30 million had already been provided for the Internally Displaced Persons (IDPs) earlier. Patterson added that the US was also ready to provide assistance to deal with the energy crisis of Pakistan.

She also stated that the Obama administration is working hard towards implementing the bill on the Reconstruction Opportunity Zones (ROZ) of Pakistan and she was optimistic that work would soon begin on it.

Addressing the media at the inauguration ceremony of the new American Business Council of Pakistan (ABC) office premises on Tuesday, she admitted that while the House of Bills had approved of it, there were some differences in the Senate which the Obama administration was working to resolve.

Patterson said that it was a challenge for the US to expand their trade to developing countries when they themselves were facing critical times due to recession as the western country was also facing losses and increasing unemployment threats.

However, she added that the Obama administration was working on increasing investments in the country and she too personally encouraged American businessmen to visit Pakistan and invest here.

Speaking about Pakistan and US trade relations, Patterson said that US was Pakistans largest trading partner and had made investments worth billions of rupees. She further said that Pakistan should increase trade within the region and also with neighbouring countries which would help it to experience a much needed boost in trade relations.

To a question by the media, the ambassador also said that while the US wasnt working particularly to increase trade between India and Pakistan, they would encourage the two countries to do so as it would be advantageous for all three nations in terms of trade and economic benefits.

Patterson said that Pakistan has a highly productive youth based population which has a good appetite for consumer goods and therefore, opportunities are abundant in the country for development and progress.

To another question regarding the gems and jewelry sector of Pakistan of which the US is the largest importer, Patterson said that American businessmen are driven by price and quality which in turn determines the trade potential and level with other countries.

I would be very surprised if Americans pull out of any deal in Pakistan where they are benefitting in terms of price and quality, she expressed.

Referring to the IDP camps, Patterson said that USA had been the largest donor to this country and would continue to be generous even in the future. She continued to say that millions had also been donated by the American companies based in Pakistan and the employees working for them.

She further stated that the US was not involving UN agencies in their aid work for the IDPs. Nevertheless, they had involved the local NGOs for the cause of which the Human Development Fund was playing a pivotal role in working with the US to provide financial aid here.


----------



## Neo

* Govt to set up 400 livestcok farms​*
Wednesday, June 24, 2009

KARACHI: The government planning and development division has planned to initiate a 3-year project for poverty reduction through livestock development.

The project Poverty Reduction through Smallholder Livestock Development will be implemented this year across the country with sponsoring of Planning Commission and Ministry of Livestock and Dairy Development.

According to details obtained by The News the project will be operated and maintained by Livestock Holders Associations on self-financing and self-sustaining basis under the guidance of project management. The community will share Rs472.45 million in a project of Rs3539.13 million. Livestock sector is the major contributor with 52 per cent of the agriculture GDP and is a source of livelihood for around one third population or 55 million people.

Pakistan is 5th largest milk producer in the world but production of milk animals remains low. More than 90 per cent livestock are owned or kept by small farmers and landless rural households (52 per cent female, 48 per cent male). About 90 per cent of total milk supply come from these smallholders. In most parts of the country, women dominate the livestock in terms of feeding, milking and marketing of milk.

During 2007-08, about 42.2 billion liters of milk was produced, of which 34 billion liters (81 per cent) were used for human consumption and only 1.26 billion liters are being processed and rest of the milk are marketed raw.

According to project details, the primary objective of the proposed project is to bring social and economic transformation of rural Pakistan by empowering millions of small livestock holders comprising the poor landless farmers including women.

The project envisages establishing 400 smallholders livestock farms in the country in three years specifically designed to cater to the needs of poor farmers and landless livestock smallholders who subsist on milk animals for their livelihood. The government will provide a grant up to 80 per cent for infrastructure development.


----------



## Neo

*Mango export doubles this year​*
KARACHI: Pakistans mango export during the current season has doubled compared to corresponding period of the last year as the current pace may help exporters to accomplish desired goal of total 1,25,000 tonne exports.

Fruit traders and exporters claimed from May till June 20, 2009 the country has exported around 30 thousand tonne of fruit, which is far better compared to around 15 thousand tonne achieved during the same period of 2008 while the total export at the end of the mango season stood at around 70 thousand to 75 thousand tonne.

The expected mango yield during the current season is anticipated to be in the range of 1.6 million to 1.8 million tonne and out of this quantity, the target of 1,25,000 tonne appears inadequate as indicated by most of the exporters which they blamed on account of lack of marketing in foreign markets and not enough support at the government level to help raise export target to substantial level.

Currently the major exporting variety of mango includes Sindhri and Chaunsa from Sindh and by the first week of the next month, different variety of Chaunsa from Punjab would start finding their way in the international markets.

Major mango importing countries includes Europe, whole Gulf region, Afghanistan and Iran.

Chairman All Pakistan Vegetable and Fruit Exporting Association, Abdul Wahid informed out of total 30 thousands tonne of the mango exported so far, some 5 thousand tonne were dispatched through air routes while the rest by sea.

Owing to high tariff charged by the national Flag carrier PIA, exporters preferred to send little quantity of the mango through the same while the bulk was send off through foreign airlines charging less.

The airfreight rates difference stood at around Rs 30 per kg which was enough to lure exporters to book their cargo with them.

He said currently a delegation from Japan External Trade Organization (JETRO) headed by Minoru Uga was visiting Karachi for inspection of Vapour Heat Treatment Plat (VHT) at Malir, donated by the country some four years ago for treatment of different varieties of mango rendering them worth exporting to Japan.

The plant was installed with the objective to eliminate the menace of fruit fly from Sindhri and Chaunsa as Japan has indicated to import Pakistani mango from next year, which is regarded as lucrative and rewarding market for exporters.

Fruit exporters association has also planned to hold a seminar during July of the current year, which is expected to be participated by Japanese fruit importers.


----------



## Neo

*Govt targets 20% rise in real per capita income in 5 years​*
ISLAMABAD: The government set a target of 20 percent increase in real per capita income in next five years that will base on an average Gross Domestic Product (GDP) growth rate of 6 percent, official document with Daily Times revealed.

To achieve the increase in real per capita income, the government also set population growth rate at 1.8 percent in the specified period. More efforts would be required to further increase real per capita income to 25 percent with average growth of GDP of 6.5 percent to 7 percent during Tenth 5-year plan (2010-2015).

According to the Economic Survey 2008-09, Pakistans per capita real income had risen by 2.5 percent in 2008-09 as against 3.4 percent last year. Per capita income in dollar term rose from $1042 last year to $1046 in 2008-09, thereby showing marginal increase of 0.3 percent.

For the purpose, the government has to bring down inflation rates in single digits during the Tenth Plan Period along with overcoming energy shortfall and significant improvement in the condition and outreach of physical infrastructure across the country.

The government also planned to improve Pakistans standing in international comparison of the cost of doing business and business environment for private and foreign investors.

A significant improvement in delivery, cost effectiveness and quality of output of public sector investment programme through adoption of new development vehicles, Public-Private Partnership (PPP) and active involvement of the private sector and civil society in formulation, management and delivery.

Set up measurable targets and performance indicators that would allow monitoring of improvement in governance and delivery of good quality basic services, timely justice, enforcement of contracts and assistance to ordinary people in overcoming problems they face in everyday life, the document revealed.

A sharp increase in growth, development and job creation in Balochistan and FATA, the revitalisation of growth in NWFP and targeted growth of less developed districts in Punjab and Sindh (together termed as Nation Building Regions).

A well-targeted, comprehensive and dynamic social protection system in place for the needy and vulnerable which also helped build their assets and skills to exit out of poverty, the Five-year plan revealed. Meeting the Millennium Development Goals (MDGs) by 2015 by increasing resources and supporting policies for achieving target where Pakistan was falling behind.

Sharp decline in poverty to move as close as possible to the MDG target of 13 percent of population living below the poverty line by 2015. Decent and good quality employment generated with unemployment reduced to 3.5 percent 4 percent by 2015 and real wages increased significantly.

The document revealed a favorable business environment would be created to encourage foreign investment in new areas to supplement domestic development efforts and acquire latest technology.

To meet the resource gap and overcome foreign exchange availability constraint, donor assistance from multilateral and bilateral sources would be sought but it must be ensured that this was used efficiently in line with Tenth Plan (2010-15) priorities. It should not crowd-out domestic resource mobilisation effort or used, as a cushion to postpone needed structural reforms.

To ensure long-term stability and sustainability of the economy, effort would be made to keep the foreign and domestic debt within manageable levels. The limits set by the Fiscal Responsibility and Debt Limitations Act 2005 would be adhered, it revealed.


----------



## Neo

*Budget 2009-10: We missed everything again ​*
Majority of the Pakistanis were dejected after hearing the budget speech on the evening of June 13, 2009. Not because there was no relief for the poor section of society. This was not expected by anybody from a government dealing with war time economy. The real cause of disappointment was demonstration of lack of will to tax the rich - especially the absentee landlords.

The government failed to outline any measures for revival of ailing economy. All the taxation proposals show that the poor will have to face more miseries. On the contrary, the rich and the mighty have again managed to escape taxation on their colossal income and wealth. The gigantic bureaucratic apparatus - epitome of bad governance - is given 15&#37; pay raise but not a single step is made to curtail their monstrous wasteful expenditure and monetize all their perquisites and benefits received in kind.

The analyses done by independent economists and observers reveal that the government of Pakistan People's Party (PPP) has failed to meet the economic challenges of the day in its second budget. Is it the budget of PPP-once a social-democratic party? Certainly not, it is, in fact, as economist Nadeemul Haque aptly said, "the 10th Citibank budget and the 64th bureaucrat-controlled budget and what do we get? Same old! Same old! Same old"

What should have budget 2009-10 been like? This question was never discussed by the elected government inside or outside the parliament. Resultantly, the annual budget, as usual was prepared in the same old mould - bureaucratic-controlled, IMF-sponsored and pro-rich.

Nobody has realised, while preparing this important document, that at this juncture of history, Pakistan needs class stability to avoid chaos, civic strife, lawlessness and religious obscurantism. The tragedy of 2.5 million Internally Displaced Persons (IDPs), burgeoning debt servicing, increased military budget, high inflation, unjust tax system, wasteful expenses, industrial slowdown, recession, State inefficiency and bad governance pose serious challenges to our economic survival.

But, in the budget no serious efforts are outlined to meet these challenges - the budget-makers were more interested to balance their books through foreign and domestic borrowings. What else could one expect from a banker trained by Citi Bank? But the question is where the stalwarts of PPP were. People like Chaudhry Manzoor Ahmad and Sardar Asif Ahmad Ali, who are known champions of pro-poor socialist economic policies.

Sadly, budget 2009-10 provides only Rs 31.6 billion for education and merely Rs 6.4 billion for health. Can this be called a pro-poor budget? The burden of indirect taxes, constituting nearly 70% of total taxes, stands shifted to the poor, yet, PPP claims it has pro-poor economic policies. Have PPP stalwarts studied the model of greater social mobility in the Nordic countries? Have they bothered to adopt their tax and welfare systems? The systems of these countries, unlike that of America which we follow with pride, deliberately try to help the children of the poor to do better than their parents. This is what pro-poor polices imply.

It is more than obvious that Budget 2009-10, is totally oblivious of redistributive fiscal policies and social welfare programmes for social mobility. Our poor have been given a so-called "economic relief package" by way of mercy - Benazir Income Support Programme. The relief (sic) is only of cosmetic nature and there is nothing in the policies or budget that aims at helping the poor to move upwards. Education remains at the lowest level of priority in our state policies.

The federal and provincial governments not only allocate meager amounts for this sector but also do not know how within given resources through innovative means they can revamp the entire system to become effective tool for social mobility. There is a complete lack of understanding of this issue by the rulers and the result is that poor segments of society are condemned to remain mired in abject poverty and their children have no chance to move up as education is either not available to them or is of no practical use.

Thus, by all standards, budget 2009-2010 is yet another routine exercise of balancing the books (that too by domestic and foreign borrowings). Pakistan needs meaningful redistribution policies that specifically benefit those at the bottom. There is nothing in this budget towards achieving this goal. It is, as usual, a disappointing document-prepared by bureaucrats at the behest of the rich classes for the perpetuation of an exploitative economic system.

(The writers are tax lawyers and authors of many books
on Pakistani tax laws.)


----------



## Neo

*'First Data' to extend business in Pakistan: Gul Agha​* 
KARACHI (June 22 2009): Global technology leader in information commerce 'First Data' has captured over 15 percent market share in Pakistan, with full range of payment card and loan processing services unique services, products, fraud and risk management and highly experienced people.

Khurram Gul Agha, Country Manager, First Data Pakistan, in an exclusive interview with Business Recorder said that after this success, now 'First Data' has planned to extend its business in Pakistan by developing new clients. He is also expecting that information commerce would be in high demand in the current economic climate.

Agha said that major changes in economic situations raise new opportunities for information commerce, especially where increased efficiency is required. "Therefore, we are very pleased with the strategic decision to open office in Pakistan and look forward to working with financial and retail partners throughout the country", he said.

"Now banks across the world are thinking creatively not only to manage liquidity crisis but also to improve operational efficiency, while 'First Data' successful business models offer both reduced costs and drive revenues for customers," he added.

"Having a full range of products, in a vast number of markets can only be of benefit, and we are working hard to analyse the situation so that we can take advantage of any opportunities arising in the current economic climate", Agha said.

Some studies on the current crisis also suggest that the current situation will bring an opportunity to banks to implement measures which have been postponed for too long but which are necessary to ensure their competitiveness at the regional and global level, he added.

"Our plan is to continue to grow our business presence across all our existing lines of business and keep supporting our existing clients, going forward," he added.

He said that 'First Data' is already providing a complete range of services to Bank Al-Falah and Allied Bank. "However, we are looking forward to developing clients further, as the office gets established and local institutions start to realise the potential benefits of working with First Data". First Data, global technology leader in information commerce, helps different businesses, such as merchants and financial institutions, to process electronic payment transactions across all modes of payments, safely and efficiently, he said.

With operations in 37 countries, First Data serves more than 5.4 million merchant locations and more than 2,000 card issuers and their customers across the world, he added.

First Data opened its office in Karachi in August 2008 with full range of payment card and loan processing services, merchant acquiring solutions, ATM and point-of-sale management, fraud and risk management to Pakistan's financial institutions, Agha said.

He said that entry in the fast growing Pakistan market reflects First Data's strategy of developing local presence in major markets around the world to deliver its global payment solutions.

Talking about the rising fraud cases in the financial sector, he said that First Data has a full suite of fraud solutions which are tried and tested across the world.

"Our comprehensive range of solutions provides fraud detection and prevention services at every stage of the payments life cycle from application, activation, authentication and pre-transaction, through to transaction and beyond", he added.

In addition, First Data also provides a comprehensive suite of operational fraud services designed to deliver early detection of potential fraud events and to minimise customer inconvenience. Agha said that like any economy in the world, people in Pakistan would be looking for payment mechanisms that are convenient, accessible and secure. Therefore, First Data is expecting better achievement in Pakistan.

Confidence should also be gained from the fact that First Data processes more payments globally than any other provider, with 33.9 billion global merchant transactions in 2007, across 66 countries, enabling customers to efficiently gather, integrate and understand transaction data across payment types and regions.

"We have also 27,000 experts employed world-wide including professionals based in Pakistan who are aware of local requirements. So, the in-house knowledge is at hand to provide solutions to all issues", he added.

He said that considering the comprehensive range of flexible payment processing and consumer finance outsourcing solutions, First Data has a wide range of audiences but in the main these can be characterised as financial institutions, banks and retailers.

"Our wide range of tailored solutions enables us to provide a single source for payment processing virtually anywhere and any format as determined by our customers," he added.

He said that in the recent global financial crunch, First Data with unique services, products and highly experienced people, is well positioned to cope with any changes in the economy in the short and long terms.


----------



## Interceptor

Neo said:


> * Govt to set up 400 livestcok farms​*
> Wednesday, June 24, 2009
> 
> KARACHI: The government planning and development division has planned to initiate a 3-year project for poverty reduction through livestock development.
> 
> The project Poverty Reduction through Smallholder Livestock Development will be implemented this year across the country with sponsoring of Planning Commission and Ministry of Livestock and Dairy Development.
> 
> According to details obtained by The News the project will be operated and maintained by Livestock Holders Associations on self-financing and self-sustaining basis under the guidance of project management. The community will share Rs472.45 million in a project of Rs3539.13 million. Livestock sector is the major contributor with 52 per cent of the agriculture GDP and is a source of livelihood for around one third population or 55 million people.
> 
> Pakistan is 5th largest milk producer in the world but production of milk animals remains low. More than 90 per cent livestock are owned or kept by small farmers and landless rural households (52 per cent female, 48 per cent male). About 90 per cent of total milk supply come from these smallholders. In most parts of the country, women dominate the livestock in terms of feeding, milking and marketing of milk.
> 
> During 2007-08, about 42.2 billion liters of milk was produced, of which 34 billion liters (81 per cent) were used for human consumption and only 1.26 billion liters are being processed and rest of the milk are marketed raw.
> 
> According to project details, the primary objective of the proposed project is to bring social and economic transformation of rural Pakistan by empowering millions of small livestock holders comprising the poor landless farmers including women.
> 
> The project envisages establishing 400 smallholders livestock farms in the country in three years specifically designed to cater to the needs of poor farmers and landless livestock smallholders who subsist on milk animals for their livelihood. The government will provide a grant up to 80 per cent for infrastructure development.



It is weird that Pakistan is not major exporter of live stock after all there is such lucrative market out there and we need to grab hold of it. It is good step towards the future.


----------



## Neo

*France to increase cooperation in oil & gas sector ​* 
Thursday, June 25, 2009

ISLAMABAD: Ambassador of France Daniel Jouanneau, and Counsellor for Economic & Commercial Affairs Dominique Simon, visited the OGDCL House here on Wednesday. 

During the briefing, the Ambassador stated that his government was keenly observing economic trends in Pakistan in the present scenario and is keenly assessing forward cooperation in oil & gas development and relevant activities, says a press release.

He further said that Pakistani companies were being given ample space in France and Pakistan community in France could also play an important role in bringing investment in the E&P sector of Pakistan. This objective could only be achieved by creating awareness and motivation at the highest level about the professional expertise available in Pakistan.

He said that the French government had always been in the forefront to provide transfer of technology in various fields to Pakistan. He informed that French company Total had invested in Pakistans offshore drilling under a joint venture. He reiterated that the French Government has always played a proactive role in boosting Pakistans economy.


----------



## Neo

*Pakistan to seek 3.5 million tons Qatar LNG quota​* 
ISLAMABAD (June 25 2009): Pakistan will seek quota of 3.5 million tons liquefied natural gas (LNG) from Qatar during the two-day negotiations starting on Thursday. LNG, to be imported from Qatar, would be used for power generation and industrial production, mainly the textile sector. Negotiations with Qatar Gas will also be held for import of LNG.

Qatar is one of the largest LNG producers of the world, operated by the state-owned Qatar Gas Company. LNG is one of the fastest growing fuels in the world and, due to high demand, its supply has been under stress. The Sui Southern Gas Company (SSGC) is already working to establish an LNG terminal in the country.

A delegation of Petroleum Ministry, led by Advisor to Prime Minister on Petroleum and Natural Resources, Dr Hussain, is in Doha to discuss import of LNG from Qatar. G A Sabri, Special Secretary Ministry of Petroleum, is also accompanying the Advisor. Talking to Business Recorder from Doha, Asim said that Pakistan requires a quota of 3.5 million tons LNG from Qatar, to be utilised for power generation and industrial units, including textile.

About the cost of LNG to be imported from Qatar, he said that it would be equivalent to the price of furnace oil but it would result in fuel diversification in the country, and added that it would also prove an environment-friendly fuel. He said that import of LNG from Qatar would ensure regular fuel supply to industrial units and power plants at a time when the furnace oil prices shot up in the international market.

It would also help accelerate the economic growth that is hurt by power and gas shortage, the Advisor said, adding that Pakistan also needs to secure energy for future growth. According to the working of Petroleum Ministry, Pakistan requires additional gas supply for at least five years when there is likelihood of Iran-Pakistan (IP) gas pipeline becoming operational.

Qatar produces around 1,600 million cubic feet natural gas per day, which is transferred to plants known as 'the trains', which are 300 metres long and the trains process the natural gas into the exportable liquefied natural gas (LNG). LNG production started in Qatar in 2005 and Qatar Gas exports 10 million tons per annum LNG. Qatar Gas Company plans to expand capacity in 2010 to 42 million tons per annum.


----------



## Neo

*UK's Ultimate Group keen to invest in Pakistan​*
ISLAMABAD (June 25 2009): The Ultimate Group United Kingdom (UK) expressed keen interest to invest in various sectors of the economy including power generation, coal, motor sports and 4G licensing. A four-member delegation from United Kingdom headed by Managing Director Ultimate Group UK, Raymond Barry Walsh called on Chairman Board of Investment Saleem H Mandviwalla here on Wednesday and discussed the investment opportunities available in Pakistan.

Raymond Barry Walsh gave a presentation about the Ultimate Investments, which include property, commodity trading and waste management to energy initiatives. The Group has been involved in a wide cross section of projects in building, civil engineering, water and rail sectors.

The Chairman BOI briefed them about the energy requirements of the country. He welcomed them to bring in the technology for extraction of Thar coal, which stands at second largest in the world. The Chairman appreciated their idea of bringing in Formula 1 to Pakistan as Ultimate Group is recognised as an accepted not only as motor sports organisation but also an international facilitation company.

The delegation is scheduled to meet with the officials of Water and Power, PPIB, Communication, Tourism Division and Sports Division. The Chairman BoI highlighted the policy parameters of investment in Pakistan and underlined the policy, which allows 100 percent foreign equity in the major sectors and full repatriation of profits and dividends in all the sectors. It was further explained that the average rate of return is almost 30 percent and in some cases it was up to 50 percent. Saleem H Mandviwalla assured to extend all possible assistance required to them.


----------



## Neo

*US to push for Pakistan economic support at G-8 summit​*
WASHINGTON (June 25 2009): The United States will ask major industrialised nations to expand their economic support for Pakistan at this week's meeting of G-8 foreign ministers in Italy to help the South Asian anti-terror ally deal with the "enormous humanitarian challenge" to provide relief to millions of displaced people.

Under-secretary for Political Affairs William Burns will represent the US at a series of meetings on Pakistan and Afghanistan in the Italian city of Trieste from June 25-26 in advance of the G-8 summit in July.

"We'll put a particular focus at this meeting on what they can do to help Pakistan, in particular, to bolster Pakistan's civilian government and its efforts to combat Taliban and extremists," a senior State Department told journalists at a briefing about US participation in the meeting, also to be attended by Britain, Canada, France, Germany, Italy, Japan and Russia.

"The European Union (EU) had a conference on Pakistan I believe it'll be its first one in history - last week and came up with a significant amount of money, I think $100 million, getting us towards the goal of $500 million for Pakistan. That's an important contribution of a non-military sort, the likes of which we'll be looking to build on at the G-8 meeting," the official added.

US Special Representative for Pakistan and Afghanistan Richard Holbrooke and Pakistani and Afghan foreign ministers will also attend the meetings. They stressing the gigantic task Pakistan faces in looking after the internally displaced persons of Swat and other parts of north-western Malakand region, the State Department official said the world must rally behind Islamabad's effort as it is trying to address a problem of global implications.

The official noted that the Italians are convinced that this is a global problem and can only be dealt with globally. The official expected an open dialogue on the challenges that in Afghanistan and Pakistan at the meetings. "If we're all working together, and I think there's a significant amount of common interest in Pakistan in bolstering the Pakistani government and in providing more resources for its fight against the Taliban and other extremists, and for finding money.

"And I hope this meeting will help us work towards that goal for the tremendous challenge of IDPs in Pakistan. There's an enormous humanitarian challenge and the international community will need more resources to deal with that. And all of these countries coming together who have an interest in all of these same things: bolstering the government, fighting extremists, and dealing with the humanitarian situation, we hope we'll be able to co-ordinate the efforts better with a chance to talk about it."

Questioned if the US would be looking for humanitarian aid and military aid or both, the official replied: "We'll be looking for all of the ways in which countries will be able to help bolster the government and contribute towards these goals."


----------



## Neo

*Raja Pervez vows to end load shedding in 2009​*Thursday, 25 Jun, 2009

ISLAMABAD: Minister for Water & Power, Raja Pervez Ashraf has reiterated again here on Thursday that load shedding would be eliminated by the end of 2009 through the combined efforts of PPIB, Pepco and other private sector investors.

He was chairing the 82nd board meeting of the Private Power & Infrastructure Board (PPIB) and reviewed the progress of private sector power projects under various stages of construction.

The Minister stated that present government has been facing many challenges since its accession to power in March 2008.

But the power shortfall has been the most crucial and critical challenge faced by the government, he said in the meeting. 

The minister said that efforts were being made to add the required number of megawatts by the end of this year and for this purpose several fast and medium track power projects were under process.

The meeting was briefed on the status of fast track and rental power projects. It was informed that all the projects being processed by PPIB would be operational at their scheduled time.

It was noted that the failing to achieve targets would have a severe negative effects on the countrys economy resulting in non productivity and unemployment. 

The meeting was attended by the Secretary Water and Power Shahid Rafi, Additional Secretary Ministry of Finance M. Razi Abbas, Additional Secretary Ministry of Petroleum and Natural Resources Muhammad Ejaz Chaudhary, Member Federal Board of Revenue Zafar ul Majeed, Chairman WAPDA Shakil Ahmad Durrani, and Managing Director PPIB Fayyaz Elahi, besides other senior government officials, and private members of the Board.


----------



## Neo

*50pc cotton, paddy crops may be lost due to water shortage ​* 
Friday, June 26, 2009

KARACHI: Damage to more than 50 per cent production of cotton and paddy is likely this year in Sindh amid 40 per cent water shortage in the current Kharif season.

This year, Sindh has a production target of 3.25 million bales of cotton over an area of 0.5 million hectares and 2.03 million tonnes of paddy over 0.642 million hectares.

However, the water shortage has badly affected the sowing of both the crops across the province and growers have protested.

President Asif Ali Zardari was also informed about the water shortage during his recent visit to Karachi. According to reports, he ordered that the water scarcity issue should immediately be resolved and more water should be made available to the province.

The Sindh government has taken serious notice of sowing paddy in cotton exclusive districts and has stopped the practice this year. Paddy consumes more water and nothing would be left for cotton.

Nevertheless the growers in tail-end areas of Indus are worried that the target of both major crops - cotton and paddy - may not be achieved due to water shortage.

Reports said that Sindh would be given around 32,000 cusecs extra water daily but it has not satisfied the growers. Reports said that President Zardari has ordered to take other efficient way of water distribution but the growers have demanded water according to water accord of 91.

Syed Qamar u Zaman Shah, Chairman Sindh Chamber of Agriculture told The News that there was no other way to compensate Sindh than to give its water share according to the 91 water accord.

Guddu barrage is our cash counter, we should be given our due share at that barrage, he said. When there is no proper share given at Guddu, how it would reach to other two barrages, he asked.

Shah said that they were given water somewhere in Punjab, which could be diverted through other canals or would be pumped out. Measurement of Sindhs share should be at Guddu barrage only, he stressed. 

He said paddy needs regular supply of water besides cotton. 

New variety of BT cotton requires almost double water than previous varieties. BT cotton has been sown by majority of growers, which requires at least 6 waters compared to 2 to 3 waters provided to other local varieties of cotton. 

Not only these two crops would suffer from water shortage but sugarcane is also in the fields, it would also be affected along with minor crops, Shah said. 

We are lower riparian and the upper riparian are taking water as it was their kingdom, he said.


----------



## Neo

*Move to improve utilisation of ADP funds​* Friday, June 26, 2009

LAHORE: Punjab Minister for Finance, Tanveer Ashraf Kaira, has said that the provincial finance department will conduct an audit of all departments after every quarter to assess their performance in order to improve utilisation of ADP funds.

Speaking at a post-budget seminar organised by the Institute of Cost and Management Accountants of Pakistan (ICMAP), he said such seminars play an important role in mobilising opinions for assisting the government.

The suggestions put forward by the accountants have usually proven useful for us. I put on record my appreciation for the assistance provided as and when required, he added.

He said Pakistan has long been experiencing recessionary trends. Our cash-strapped position caused by a massive debt has kept our economy at a low ebb.

He was of the view that debt servicing eats up a whopping share of current revenues and said that a lot of funds were arranged through deficit financing, still some funds were left for development and revenue expenditures.

Kaira said there were a number of structural imbalances in the economic system which needs careful attention. In this regard, the government has been planning to implement home-grown structural reforms to revive economy.

Talking about utilisation of Annual Development Programme (ADP) funds, Kaira said there had never been 100 per cent utilisation, in fact it was around 70 per cent of the total outlay. Now the government is expecting to utilise Rs130 billion out of total 160 billion ADP funds, which will be above 80 per cent, he added.

Speaking on the occasion, Deputy Collector Sales Tax Syed Mahmood ul Hassan said that the national budget would go a long way towards strengthening the economy, creating job opportunities and bringing prosperity.

He especially mentioned some of the salient features of budget 2009-10. He said the present socio-economic problems demanded extra hard work from everyone.

Lahore Chamber of Commerce and Industry (LCCI) Member Executive Committee, Shahzad Ahmad Khan said that job creation should have been the key priority for eliminating poverty and other problems.

Dr Khawaja Amjad Saeed argued that the budget was full of presumptive taxes and the unjust policy of relying on indirect taxation had continued over past eight years. This would affect masses and promote consumer economy, he said.

Lahore Branch Council Chairman, Muhammad Imran Afzal said Pakistans tax setup was more pro-rich than pro-poor. As a result, the rich paid less or no tax and the middle class were completely burdened.


----------



## Neo

* Pakistan, Romania trade rises to $63m​*
Friday, June 26, 2009

ISLAMABAD: Romania is Pakistans important trading partner within the European Union (EU), and Pak-Romania bilateral trade has increased from US$25.92 million to US$63.80 million in 2008-09.

This was stated by the Federal Minister for Commerce Makhdoom Amin Fahim, while talking to Gheorghe Margheru, Director General Asian Department of the Foreign Affairs of Romania, who, along with a six-member delegation met with him on Thursday.

Secretary Commerce Suleman Ghani and other officials of the Ministry were present on this occasion. The federal minister expressed a desire that increased interaction of businessmen and contacts on official levels would provide an opportunity to identify areas of mutual interests.

The delegation was told that Pakistan attaches greatest importance to its trade relations with the EU, which is the single largest trading partner accounting for 27pc of the countys exports and 17pc of total imports.

The trade volume has been doubled for the last five years, the delegation was told. The visiting Director General said that like Pakistan, Romania is also located at a strategic point of the Black sea in Eastern Europe.

He talked of exploring the potentials in trade and commerce at bilateral level as well as at the EU forum. The federal minister apprised the Director General that since Romania is a member of EU we would like meaningful support at the EU level, besides bilateral partnership.

Pakistans major exports to Romania include material of animal origin, cotton fabrics and articles of textile materials, while imports include oil seeds, iron and steel manufactures and machinery.

Reactions: Like Like:
1


----------



## Neo

*Textile exports slip by 9.5pc​*
Friday, June 26, 2009

ISLAMABAD: The overall textile exports1 of the country during July-May 2008-09 registered a downward trend decreasing by 9.5 per cent, when compared to the same period of last year (2007-08).

During the current financial year, Pakistan managed to earn only $8,724.05 million by exporting the textile goods as compared to $9,644.86 million during July-May 2007-08, said official data of the Federal Bureau of Statistics.

However, export of raw cotton during the period under review witnessed an increase of 27 per cent as about 76,357 metric tons of raw-cotton was exported worth $83.51 million as against 52,801 metric tons, of the commodity was exported to earn $6.53 during same period of 2007-08. The export of cotton yarn slipped by 15 per cent, and about 474,02 metric tons of cotton yarn was exported to earn $1,000.93m as against 509,991 metric tons totalled $1,190.8m.

The export of cotton remained on an upward track with increase of 17.71 per cent during the time under focus. Pakistan earned $14.48m by exporting 12,446 metric tons as compared to 12.51 metric tons at total cost of $12.3m by the export of cotton combed. Towel exports also observed an increasing trend as the export of the said product surged by 2 per cent during July-May 2008-09. About 153,995 metric tons of towel was exported during the eleven months of current financial year, while about 138,720 metric tons of goods was exported during the same period of last year.


----------



## Neo

*Forex reserves up $126.8m​*
KARACHI: Pakistans foreign exchange reserves improved by $126.8 million during the last one week to $11.7 billion as on June 20, the State Bank of Pakistan announced on Thursday. Last week (on June 13), total liquid foreign reserves were standing at $11.6 billion, according to the central bank. Foreign reserves held by the SBP rose to $8.45 billion from $8.30 billion last week. Contrary to that, net foreign reserves held by banks (other than the SBP) fell slightly to $3.31 billion from $3.34 billion in the previous week.


----------



## Neo

*65 foreign ships arrive at Gadani for breaking​*
KARACHI: At least sixty-five ships have arrived at the Gadani ship-breaking yard from various countries for scrapping. More are expected to reach shortly.

According to a senior official of Customs, the ship breaking industry would flourish once again in the country with the arrival of 65 old ships. The country had not received such a large number of ships during the last two decades.

He said that it would not only provide job opportunities to thousands of workers, but would also provide a boost to the steel industry because these 65 ships would produce around 500,000 tonnes of scrap.

He said that government had received around Rs 1 billion in customs duty and income tax on import of these ships. The official said that the ship breaking industry was at its peak in the 1970s when up to 150 ships were brought to the Gadani ship-breaking yard.

However, the industry lost its charm in the 1990s when the prices of old ships increased and duty was imposed on ship breaking. He said that this led to an increase in the smuggling of scrap from Iran and Afghanistan to Pakistan. The smuggling would now come to a halt after the revival of the local ship-breaking industry, he said.

According to Pakistan Ship Breakers Association (PSBA) president Dewan Muhammad Rizwan Farooqui around 72 medium- and small-sized ships have anchored on the Gadani shipyard during last one year.

Before the budget there were rumors about tax being imposed on the industry, but on the request of Balochistan chief minister no tax has been imposed on the industry, he said, adding: Now we are hopeful that in the next fiscal year we will be able to produce about 550,000 tonnes of steel scrap.

He said that the ship breakers had set a target to produce around 500,000 LDT steel scrap by the end of the fiscal year as the local demand for ship billets and scrap metal had surged sharply.

Downturn in construction and engineering sectors besides decreasing international prices of raw material had reduced the demand for steel about six months ago.

Farooqui said that around 8,000 workers were earning their livelihood at Gadani dockyard and with this increase in pace of work the number of employment opportunities would increase.

PSBA president said that Pakistans ship breaking industry made available 152,260 LDT steel and metal scrap through dismantling of 34 ships of various sizes in 2007.

In the last 10 years, the ship-breaking industry had produced 926,067 LDT scrap by breaking up 64 vessels of different sizes. The industry had contributed Rs 3.53 billion to the national exchequer on account of taxes and duties during this period.

He said the ship-breaking industry had seen its peak in the 1980s when it was called the biggest ship breaking industry in the world. It used to provide employment to over 30,000 workers directly, while over a half million people earned their living indirectly from industries which used ship scrap as raw material. In 1985-86, the ship breaking industry helped the country in making an annual saving of Rs 1.5 billion, which would otherwise have been spent on import of iron and steel.


----------



## Neo

*Earning target: Govt sets $280m IT exports target for 2009-10​*
ISLAMABAD: The government set a target of $280 million earning from export of Information Technology products during the fiscal year 2009-10.

However, this amount was very low as compared to IT exports by other regional countries, according to the Annual Plan 2009-10.

For increasing the software and IT exports, besides attracting large multinational businesses in the country, local entrepreneurs and investors in large numbers should be attracted through incentives and infrastructure support.

For this purpose, development of IT incubators to establish IT companies and venture capital funds should be encouraged by providing them with one-window-facilitation to start their business. A government-backed programme to establish IT incubators should also be designed.

To attract large international businesses, the local IT companies need to complement their expertise as well as augment their capacity through clustering as well as mergers/acquisitions on successful business propositions. Mergers, acquisitions and joint ventures with foreign software houses also help in the promotion of software development, software business and transfer of technology.

The system needs to be put in place a proper mechanism of incentives. This would enable the local companies to transform into world-class companies.

For the development of IT sector in the country, the government had allocated Rs 2.3 billion in PSDP 2009-10 for 65 projects. The PSDP earmarked for 2009-10 would further enhance the human resource development, IT industry development, e-government, infrastructure development, and would create employment opportunities in the IT sector.

For development of IT sector, the government would initiate several development schemes including.

National ICT Scholarship Programme: The target for the year was to provide foundation training to about 9,000 students. About 700 successful students from this foundations training would get scholarships (target for five years is 3,500 scholarships) for 4-year Bachelors degree programme in various national universities.

IT Training for Elected Lady Representatives (Phase-II): Approximately 1,500 elected lady councilors would benefit from this training programme. The project would be completed in March 2014.

Pakistan Software Export Board: The board plans to place 400 interns in various companies in the next year. The project will be completed in December 2009.

Pakistan Computer Bureau: The bureau plans to provide basic IT training to 3000 government employees.

IT industry development: In PSDP 2009-10, emphasis on improving the IT infrastructure would continue so that more international IT companies were attracted to do business in Pakistan alongside the domestic IT companies. In this regard, some of the important projects included in PSDP 2009-10 are:

Phase-II of standardisation of Pakistani IT industry would further strengthen the capacity of IT industry to attract international business. The target for the year was to support 50 companies to attain CMMI level 2, thirty companies CMMI level 3 and 15 companies CMMI level 5. The proposed cost of the project is Rs 290.7 million.

Next phase of strengthening of Pakistani IT industry through international certifications will offer opportunity to Pakistani companies of achieving twenty certifications of both ISO 20000 and ISO 27001. The proposed cost of the project is Rs 170 million.

IT parks construction projects consultancy for both Karachi and Lahore airports would be launched. These parks would facilitate more IT firms to establish their businesses in the country. These projects would cost the government Rs 50 million.

E-government: Machine readable passport/ machine readable visa project (MRP/MRV) Phase-II: The MRP/MRV system would be deployed at 10 RPOs and 40 foreign missions in the year 2009-10. The project would be completed in January 2011.

Replication of e-office (basic common applications) at 45 divisions of the federal government was being implemented. In the next year, e-office will be deployed at establishment, interior and health divisions.

Automation of Central Directorate of National Savings (CDNS) would facilitate its investors and improve public service at its business units. This would also provide value added services including ATM, Internet and mobile banking etc to the clients of CDNS in future.

Upgradation of NADRA Data Warehouse would further enhance and upgrade the existing system to cater for future needs of NADRA.

Land revenue records management system for Punjab had been revised with an increased scope to cover all 36 districts of the province and an improved implementation methodology focusing at Tehsil level instead of Kanoongoi level to improve the efficiency of land records management and facilitate the citizens to have better access to land records at an affordable cost.

Prime ministers initiative for providing video conferencing facility for federal and provincial governments would be launched. Overall, there was a provision for providing video conferencing facility at 50 sites in the project based on high definition technology.


----------



## Neo

*ADB economic transformation programme: $500 million loan accord signed​*
ISLAMABAD (June 27, 2009): The government of Pakistan and the Asian Development Bank (ADB) on Friday signed a loan agreement for 'Accelerating Economic Transformation Program (Subprogram-2)' amounting to $500 million, which is second part of a larger program of about $1.5 billion, over a period of four years, to support Pakistan in dealing with the challenges created by the unprecedented international food and energy crisis.

The agreement was signed here in Economic Affairs Division (EAD) by EAD Secretary Farrakh Qayyum from the Pakistan side and Rune Stroem, ADB Country Director in Islamabad. The program will help the Pakistan government to remove fundamental distortions to support economic transformation and strengthen the financial sector.

The principal objectives of the program are: (i) to achieve a sustainable higher economic growth in the medium term, (ii) expand its social safety net and make it more targeted to protect the poor and vulnerable from the adverse impact of the recent global developments, (iii) adopt structural reforms to address inefficiencies in the agriculture sector, particularly with respect to wheat markets and food security policies, and (iv) take measures to address the energy crisis.

Rs 41 billion in the financial year 2008-09 was allocated for safety net cover up to $5 million to poor families. Through Benazir Income Support Program, a cash grant of Rs 2,000 is provided every alternate month to qualifying families based on a means-tested selection criterion using computerised national identity cards (CNICs). The Program is to help to empower women by paying benefits to the female head of the family who is required to have a computerised national identity card.

Formula-based scheme has been established with the introduction of market based pricing system for setting the support price for formers, taking into account the cost of production, regional prices, import export prices, domesting and global market conditions. The price of wheat for flour millers should reflect all related costs. In this way, wheat subsidies will be reduced to the minimum.

The Government has adopted the Power sector circular debt resolution plan which includes (i) confirmation of the amount of overdue debt owed by government and others; (ii) development of a financing plan showing when and how the Government will pay its debt; (iii) tariff adjustment and other measures to prevent reoccurrence of circular debt; (iv) measures that will improve finance, accountability and corporate governance of public sector entities in the power sector; and (v) implementation timetable and monitoring framework.

To strengthen the financial and operational autonomy of the Financial Market Unit (FMU), amendment has been made in the anti money laundering law to improve the financial market governance. To ensure the sustainability of these reforms and promote transparency in the implementation, Government shall provide quarterly progress to the ADB on the status of implementation to promptly and proactively address any implementation issue that may arise.

An action plan is prepared in this regard and first quarterly review mission will be held at the Federal and the Provincial level in the fist week of July 2009. Slow moving projects, which are causing cost to the government, will be reviewed to clean up the portfolio and bring the number of projects to manageable level.-PR


----------



## Neo

*$7.5 billion aid package approved by US Senate​*
WASHINGTON (June 26 2009): The US Senate on Wednesday approved a bill to triple civilian US aid to Pakistan, a bid to cement a long-term partnership and defeat Islamist fighters threatening the nuclear-armed ally's stability. Lawmakers unanimously approved the plan. The package provides 7.5 billion dollars in humanitarian and economic aid over five years, recommends that level for another five years, while tying US military aid to progress against extremists.

The package provides 7.5 billion dollars in humanitarian and economic aid over five years, recommends that level for another five years, while tying US military aid to progress against extremists. "This legislation marks an important step toward sustained economic and political co-operation with Pakistan," said Senator Richard Lugar, the top Republican on the Senate Foreign Relations Committee.

The House of Representatives passed its version of the legislation in mid-June, and the two chambers must now work out and approve a compromise bill before President Barack Obama can sign the measure into law. "Pakistan is facing a critical moment," said Democratic Senator John Kerry, the chairman of the Senate Foreign Relations Committee, after lawmakers agreed to approve it without dissent. Kerry crafted the bill with Lugar.

Supporters of the measure say they hope it will convince Pakistanis who are deeply skeptical of US support and goals that Washington stands with them against Islamists over the long haul and has their best interests at heart. "Today the Senate has made a clear bipartisan commitment to replace an atmosphere of mutual distrust and lack of accountability with a broad-based, durable commitment to Pakistan and its people," said Kerry.

The measure separates civilian aid aimed at boosting education, democratic governance, and sustainable economic growth for Pakistan's 170 million people from military assistance, which would be approved on a year-to-year basis. It ties military aid to certification that Pakistan security forces are doing their utmost against al Qaeda and similar groups, and requires Pakistan to stop the Taliban from using Pakistan's territory as a base.

But it does not materially interfere in the country's political or judicial processes. It also calls for benchmarks for measuring the effectiveness of US assistance at a time when many in the US Congress are openly skeptical of the effectiveness and desirability of boosting aid to Islamabad.

It would also require Secretary of State Hillary Clinton, in co-operation with Defence Secretary Robert Gates and Director of National Intelligence Dennis Blair, to craft annual reports on Pakistani security forces. Clinton would also be directed to work up a comprehensive strategy with Gates and Blair for coping with violence along Pakistan's border with Afghanistan.

The Obama administration has chafed at setting conditions on economic aid to Islamabad, which the House of Representatives version does. Obama has made rooting out extremism from Afghanistan and Pakistan a major priority. US officials in the past have accused rogue elements in the Pakistani military and intelligence service of secretly abetting extremists.

The US president, Vice President Joe Biden and Clinton all co-sponsored legislation nearly identical to the Senate version when they were senators. Pakistani troops are wrapping up an almost two-month-long operation against Taliban rebels in north-west Swat valley.

They are preparing to launch a second front against feared Taliban chief Baitullah Mehsud and his network along the rugged tribal belt. Worsening Taliban-linked attacks have killed almost 2,000 people in Pakistan since July 2007. Obama's national security adviser, James Jones, is slated to visit Afghanistan, Pakistan, and India to review implementation of US strategy in the region.

Earlier Wednesday Pakistani officials said US missile strikes had killed dozens of people in a tribal area controlled by Mehsud. Drone aircraft, which are only deployed by US forces in the region, hit Taliban positions on Tuesday then struck again as hundreds of people gathered for a funeral in Mehsud's north-west tribal stronghold of South Waziristan.


----------



## Neo

*Government has to retire over Rs 83 billion of debt to SBP by month-end​* 
KARACHI (June 26 2009): The federal government has to retire over Rs 83 billion of budgetary borrowing to the central bank by the end of this month to comply with the International Monetary Fund's (IMF) one of the primary conditions of limited borrowing. The IMF has set several targets for Pakistan for uninterrupted payment of 7.6 billion dollar standby loan tranches and as per the IMF targets the country has to meet the limited government budgetary borrowing condition every quarter.

The IMF has asked Pakistan to curtail the net government borrowing from the State Bank of Pakistan (SBP) and that overall stock of government's budgetary borrowing from the SBP should not be more than Rs 1,181 billion by the end of June this year. However, the central bank's latest statistics revealed that overall stocks of government's budgetary borrowing from SBP are largely higher than the IMF target. Stocks of government's budgetary borrowing from central bank stood at Rs 1,264.429 billion as on June 13 against the IMF target of Rs 1,181 billion for June end.

Therefore, to meet the IMF target, the federal government would compel to retire over Rs 83 billion during this month. Otherwise it may face some difficulties for receiving third tranche of IMF standby loan due in July. Pakistan's talks with International Monetary Fund (IMF) for the payment of third tranche worth 850 million dollar of standby loan are scheduled in the first week of July in Istanbul.

IMF has already linked the payment of third tranche with its conditions including limited borrowing, and Pakistan had agreed to implement some of them by June 30. Although, the federal government is forced to take huge borrowing from the banking system including the State Bank of Pakistan (SBP) and other banks to meet its budgetary deficit.

However, policy markers are confident that federal government would easily meet the IMF target by retiring Rs 83 billion during next few days. As previously federal government has fulfilled all IMF's conditions including limited borrowing.

For the June end quarter limited borrowing target is much lower than the March end quarter. As limited borrowing target for March end quarter was Rs 1,274 billion, which was successfully achieved by the federal government by retiring over Rs 100 billion of budgetary borrowing to the central bank in that last week of Mach 2009.

While, federal government had already met the target of limited budgetary borrowing for the December 2008, which was Rs 1,227 billion. Meanwhile, the federal government has borrowed Rs 401.621 billion from banking sector for budgetary support from July 1 to June 13, out of which some Rs 230.714 billion borrowed from SBP and remaining Rs 170.907 billion from banks.


----------



## SinoIndusFriendship

Pakistan is doing well. I'm glad there are so many Pakistan Military/Economic forums, without which the outside world would only think of Pak as a islamic terrorist desert haven located somewhere in the "middle east".

It's up to you guys to figure out a way to show the world Pakistan is so much more.

Reactions: Like Like:
1


----------



## Omar1984

Construction of new Islamabad airport to be completed by end of 2011 
By Iftikhar A. Khan 
Saturday, 27 Jun, 2009 | 03:34 AM PST 

ISLAMABAD, June 26: The National Assembly was informed on Friday that the construction work on new Islamabad International Airport will be completed by the end of 2011. 

Defence Minister Chaudhry Ahmed Mukhtar told the house that the Civil Aviation Authority (CAA) had already acquired 3,200 acres of land for the airport near Fatehjang, about 20 kilometres from Zero Point in Islamabad and 23 kilometres from Saddar in Rawalpindi. 

Mr Mukhtar said the CAA was completing this project on self-finance basis and had provided over Rs5 billion in the current financial year. 

Official sources said an additional 400 acres had also been acquired to build two runways for the first green-field airport in Pakistan. 

There will be two 4,000-foot-long runways for largest and heaviest aircraft, though initially only one will be used for operations and the other will be retained as an emergency runway. 

The project was announced in January 2005 after a 10-year delay due to political changes in the country and construction began in April 2007, when funding became available.The new airport will eventually replace the overloaded Benazir Bhutto airport at Chaklala, providing better access for the Northern Areas, NWFP, Federally Administered Tribal Areas and Azad Kashmir. 

The airport will be constructed in two phases. The first will involve the construction of taxiways, aprons and other airside infrastructure, and the second will see car parking for 2,000 vehicles, a covered plaza area for 200 cars, a control tower, maintenance hangar, a 15-gate terminal with 10 remote gates, 42 immigration counters, nine baggage claim carousels, 12 X-ray machines, and also office and administration facilities. 

There will also be a hotel, convention centre, duty-free shops, airside mall, business centre, food court, leisure facilities and banks at the new terminal. 

The airport will have an 180,000 metre square modular terminal building which will initially be able to handle nine million passengers a year. 

There will also be a cargo complex capable of handling 100,000 tons a year, four rapid-exit taxiways, a special parking area for hijacked aircraft, apron parking sufficient for the contact stands, underground cable network, parking for ground handling vehicles, secure cargo areas and major airport road infrastructure. 

The design of the new terminal building will be an architecturally significant one for Pakistan, producing a national icon for the country. 

The design will also be sustainable and environmentally sound with use of natural daylight for main lighting and sun shading to cut cooling costs as well as an intelligent main roof (water conservation) and an elongated driveway length front portal (better views and more light). 

The terminal will also make full use of traditional Islamic geometric patterns in its design. 

The modular terminal building will have a linear pier on each side and a centre pier extending out to serve the boarding gates. 

The international and domestic halls will be located together under the main roof, which will be a simple trapezoid cantilevered from one of the two side piers with a cantilevered mesh screen trellis defining the exposed roof edge and attaching to a row of columns close to the ground. 

The then president Pervez Musharraf had performed the groundbreaking ceremony of the $400 million modern airport project in April 2007, which he said would prove as a step forward to turn Pakistan into a major regional hub for trade, tourism and communication.


DAWN.COM | National | Construction of new Islamabad airport to be completed by end of 2011


----------



## Omar1984

New bus service for Lahorites to be launched today

Published: June 28, 2009 

LAHORE - In the provincial metropolis a new bus service is being inaugurated in the City today (28th June) while an agreement is also being made with a Chinese company for getting air-conditioned and non-air-conditioned CNG buses.
Punjab Chief Minister Shahbaz Sharif stated this after a briefing given by Chinese Company, Yunma Aircraft Manufacturing Company regarding provision of buses at Chief Ministers Secretariat, here on Saturday. MPA Hafiz Mian Nauman, Chairman Taskforce Khawaja Ahmad Hasaan, Secretary Transport and Finance, Chairman Lahore Transport Company Tasneem Norani, DIG Traffic and concerned officers were also present on the occasion. 
The Chief Minister said a comprehensive system has been evolved for provision of better transport facilities to the people in big cities of the province and for this purpose, subsidy is also being given to the operators. He asked the representatives of Chinese Company to provide and operate the buses. He said such fare should be fixed for these buses as would be affordable by the commuters. He said the company should also construct separate lanes for the buses. He said he will feel pleasure by signing a memorandum of understanding between Punjab and Chinese company for providing better transport facilities and it is best opportunity of investment for Chinese company, which will result in further expansion of cooperation between Punjab and China. 
He said half of the buses being provided to Punjab should be air-conditioned. He said Punjab government would provide all possible facilities to the Chinese company. Earlier, Secretary Transport while giving details about Chinese company informed that company will provide 2000 CNG buses in different phases and an agreement is being finalised with the company in this regard. He informed that under the agreement, the company would provide 700 buses during September to December this year while 500 buses to be provided during January to June 2010. 
Similarly, 500 buses would be received during July to December 2010 and 300 buses between January to March 2011. He said company would also set up five CNG stations for these buses. 
Meanwhile, Punjab Chief Minister Shahbaz Sharif presided over a meeting on installation of water filtration plants under Clean Drinking Water For All Programme in Punjab sponsored mainly by the Federal Government. Federal Secretary for Special Initiatives, Shafqat Hussain Naghmi gave a detailed briefing regarding potable water project in the province.

New bus service for Lahorites to be launched today | Pakistan | News | Newspaper | Daily | English | Online


----------



## ajpirzada

our economy is in a really sorry state. all tihs gov is doin is takin loans from anywhere possible. 
karachi is facin massive electricity shortage. water crisis is in the making. stock market is down. investment is down.


----------



## Neo

Its a temp phase mate, don't be too pessimistic. We've seen worse than this...I'm sure 2010 will be a better year for all of us.

Reactions: Like Like:
1


----------



## Neo

*Pakistan among top priority countries: Nokia​*Sunday, June 28, 2009

KARACHI: Country Director of Nokia for Pakistan and Afghanistan, Imran Khalid Mahmood has said that Pakistan is amongst the top priority countries for Nokia as it is now very much on the global map and up to the mark on everything that is happening in the world.

Therefore, in Pakistan, the price band for mobile phones may be slightly smaller but there are people who have both the money and the desire for expensive gadgets and that is what we are targeting, he said.

Head of Go-to-Market NSeries Sales for the Middle East and Africa, Henri Mattila stated that present era is all about who has the information first. Therefore nowadays people are spending a lot of time online and since they are globally connected at one time, information is at their fingertips.

The Nokia officials were exclusively talking to The News. Mahmood said that they based their strategies on consumer needs and as marketing strategies were an evolutionary process, Nokia also constantly evolved their techniques based on what the consumers were focusing on.

He believed that the new technologically advanced and expensive products were not creating an undesirable demand in the society but were rather catering to already existent needs of the consumers. If we dont do it, somebody else will, he further expressed.

Mahmood said at Nokia they ensured that their products were meaningful and had context rather than being just another expensive product in the market. He said that all their staff was trained in advance to provide after-sales services and customer care.

Interestingly, both Mattila and Mahmood labelled Pakistani consumers as image seekers or style followers. Mattila elaborated that deep inside all consumers were the same with the same desires which he termed as being: they want the latest technology, they want to have it first and that they want to show it off to friends and relatives.

He said that yet consumers in Middle East and Africa are very conscious about the look of the mobile than the features that were available in it. He voiced that in Pakistan, consumers were more into colours being vibrant due to the bright traditional cultures here, while he added that in Europe, consumers preferred more conservative colours such as black and white.

Mahmood also put in that since Pakistan was an emerging market, bulk of the consumers segment were those who purchased low cost mobile phones whereas there was also a significant segment that did nothing except make or receive calls.

Pakistan is following the trend of any emerging country but this time with the launch of N97, Pakistan is ahead of more developed countries, he added. The country director also spoke about the pirated versions of their mobile phones that cheated the consumers of their money.

I feel very passionate and hurt when loyal customers get deceived which also damages the companys name, he said. Because the government has imposed taxes that make no sense, consumers are paying the price, for this country is infested with the grey market, he added.

Mahmood said that they did not have the mechanism to stop piracy or stop the retailer from bringing in fake products and selling them into the market. He stressed that all their manufacturing units follow the same standards and quality checks all over the world.

Nevertheless, he informed that to identify an original cell phone, mobile dealers have a number displayed in their stores which reads SMS warranty check. A consumer can send in the mobiles IMEI number to the stated SMS number which would reply back saying that it had original warranty in Pakistan, which in turn help the consumer to identify an authentic mobile phone.

Henri Mattila said that Pakistan needs to reduce duties on cell phones to encourage original products to enter the country. He also said that one way to identify a fake was if the product was being sold for half the price, then consumers should be wary of it.

To a question regarding Nokias investments into the country, Mahmood stated that Pakistan was a very important portfolio for the multinational company as with a significant population, it made a lucrative consumer market.

However, Nokia already had nine plants all over the world that were fulfilling their mobile phones demand in the market.

Mahmood said they had seven care centres, a level-3 repair factory in Lahore and 9,200 plus Nokia sales points in Pakistan. Other than these, they employed a large number of manpower and invested into training them.


----------



## Neo

*All set to launch first private-sector hydropower project​*Sunday, June 28, 2009

MIRPUR (AJK): Work on the first private sector 84-megawatt hydroelectric project located 7.5 km downstream of the existing Mangla Dam in Mirpur, Azad Kashmir will start in the next couple of weeks, Khalid Faizi, Chief Executive Laraib Energy said on Saturday.

The local and international financial institutions have given approval to Laraib Energy Limited and Hub Power Company to start the construction on the low head, run-of-the-river power project located some 120 km from Islamabad.

When contacted, the spokesperson for the company confirmed that the Asian Development Bank (ADB) has approved $37.3 million, the Islamic Development Bank (IDB) has approved a matching amount, French Development Agency (FDA) has agreed to provide $26 million and the National Bank of Pakistan and Habib Bank Limited have approved Rs3.5 billion to jointly fund this project.

Additionally, the World Banks International Financial Corporation (IFC) has too agreed to provide $35 million but the final decision is yet to be taken.

The New Bong Escape project, to be completed under Build-Own-Operate-Transfer (BOOT), is among the first mega projects initiated in the private sector. Besides, for the first time the international lenders are financing a private project in Azad Kashmir.

It is expected that project will be completed in next three years, with an expenditure of around Rs25 billion. While the project will contribute to increased power availability, it will also generate a sizeable number of employment opportunities directly and indirectly.


----------



## Neo

*Rice exports cross $2bn for second time​*Sunday, June 28, 2009

KARACHI: Rice exports have crossed the mark of $2 billion for the second consecutive year despite international economic recession.

Rice Exporters Association of Pakistan Chairman Abdul Rahim Janoo stated this in a meeting with Karachi Port Trust Chairperson Nasreen Haque. He said it was only the second time in the history of Pakistan that rice exports had reached the milestone of $2 billion.

Out of the total quantity, basmati exports were 909,709 tons valuing around $1 billion while non-basmati exports crossed $1 billion.

He said Pakistan produced a bumper crop of 6.2 million tons, of which 3.5 million tons were available for exports and the rest would go to local markets. He thanked the KPT chairperson for their support to REAP in cargo handling.

Nasreen Haque said they were working on improvement of infrastructure and repairing some berths which would be completed this year.

She informed the REAP chairman the KPT handled 38.5 million tons of cargo this fiscal year against 37.3 million tons last year. She said they were working on a wind farm project which would generate 50 megawatts of power.


----------



## Neo

*G8 favours Pakistan-EU trade liberalisation​*
TRIESTE: Foreign ministers from Group of Eight (G8) countries said on Saturday they supported the possibility of liberalising trade between the European Union (EU) and Pakistan.

The possibility was raised earlier this month at a summit between the EU and Pakistan. The G8 held talks on stabilisation in Afghanistan and Pakistan that were extended to officials from the two countries and other regional players. The participants said in a statement on Saturday that they welcomed the prospects of trade liberalisation.

The statement said increased trade was crucial for the regions development, and called for stronger ties between countries in the area. Foreign Minister Shah Mehmood Qureshi said talks focussed on the development of economic infrastructure and enhanced regional connectivity  open trade corridors, improving rail and road links.

We were discussing how important it is for these people [internally displaced persons] to return home as soon as possible, Qureshi told AFP.

Its a huge challenge. Obviously, we need more help ... if we win on the military front and we lose hearts and minds, then it will come to naught, he said.

The foreign ministers of Afghanistan and Pakistan joined their counterparts from Central Asia, officials from aid organisations and the G8, but key player Iran decided to stay away.

US envoy for Afghanistan and Pakistan Richard Holbrooke joined the talks that also touched on countering drug trafficking by strengthening border security.


----------



## Neo

*Sindh Assembly approves Rs 327bn budget unanimously​*
KARACHI: The Sindh Assembly passed the Rs 327 billion provincial budget, for the new fiscal year, 2009-10 unanimously on Saturday while also approving the Finance Bill 2009 and rejecting all cut motions moved by the opposition members.

The opposition members had submitted about 1,244 cut motions, seeking reduction in 43 demands of the government out of a total 59. Sindh Chief Minister Qaim Ali Shah tabled the houses approval. Speaking on the occasion, the chief minister said that the Finance Bill was aimed at rationalising certain duties and taxes for which it was expedient to amend relevant laws. He congratulated both the opposition and treasury benches on granting the budget. He also congratulated President Asif Ali Zardari, MQM chief Altaf Hussain, PML-F cheif Pir Pagaro, NPP cheif Ghulam Mustafa Jatoi, PML-Q leader Arbab Ghulam Rahim and ANP chief Asfandyar Wali for their cooperation in running the house smoothly and helping in serving the people of Sindh.

The chief minister praised Sindh Assembly Speaker Nisar Ahmed Khuhro for conducting the budget session smoothly while allowing the 136 members to express their views on the budget. He said that he welcomed the opposition for keeping an eye on the governments performance, adding that he will always appreciate positive criticism from the opposition.

Senior Minister Pir Mazhar ul Haq, Law Minister Ayaz Soomro, Syed Sardar Ahmed, NPP member Masroor Jatoi and opposition member Abdur Razzaque Rahimoon congratulated the house for passing the budget in a cordial atmosphere.

Earlier, speaking in favour of his cut motions, opposition leader Jam Madad Ali said that their cut motions were aimed at curtailing the operating expenditure, purchase of vehicles, furniture and other unnecessary things, adding that the money should be spent on welfare oriented schemes for masses.

Opposition member Shaharyar Mehar said that huge amounts have been allocated for the health department, so that it can purchase new furniture and meet other official expenditures, which he termed as unjustified and demanded a decrease, adding that the money should be spent on the purchase of medicine. Rahimoon said, We demand a cut in the spending of officials and not on public welfare schemes. Huge sums have been allocated for the lavishness of bureaucracy. This amount should be utilised on other welfare-oriented projects. Nusrat Abbasi said that she had submitted cut motions against the expenditure of the secretariat, adding, Since it was a deficit budget, money should be spent on projects that benefit people.

Sindh assembly employees protest: Earlier, before the budget session proceedings began, employees of the provincial assembly staged a protest demonstration against the suspension of the self-hiring facility to them.

They staged a protest by sitting on the stairways and blocking the passages leading towards the assembly hall as well as the speakers office. Later, Khuhro along with Provincial Minister Dr Zulfiqar Mirza assured the protesting staff that they would be given the facility. According to the Sindh Assembly employees, the Services and General Administration Department had suspended the self-hiring facility for the past nine months although they had been availing it for the last fourteen years. They added that the government was providing this facility to the staff of the other three provincial assemblies as well as the National Assembly and Senate continuously.


----------



## Neo

*MONEY WEEK: changes in budgetary borrowing, foreign assets push up money supply by Rs 24 billion​* 
KARACHI (June 29 2009): Increased budgetary borrowing (by Rs 19 billion) and improved net foreign assets of the banking system (up Rs 16 billion) along with a marginal increase in borrowing for commodity operations (Rs 3 billion) pushed up money supply during the week by Rs 24 billion after netting out the moderating effect of OINs reflecting an increase in other liabilities amounting to some Rs 14 billion.

Overall incremental money supply during FY09 to June 13 thus stood higher at Rs 338 billion, or 7.21 percent, represented by currency in circulation amounting to Rs 220 billion and deposit money amounting to Rs 118 billion. The increase during the week occurred entirely in deposit money, represented by an increase in demand and time deposits. No significant changes were observed in credit utilisation by the corporate sector including both the private sector and the PSEs.

All in all, net domestic assets (NDA) of the banking system, represented by public and private sectors indebtedness to the system's constituents, increased during the week by over Rs 8.5 billion to Rs 536.5 billion. Net foreign assets (NFA) of the banking system, in the meanwhile, improved by Rs 15.7 billion, reflecting lower depletion of foreign assets, which now stood reduced to Rs 198 billion.

The improvement in NFA was in line with the improvement in liquid foreign reserves of the country which surged from $11.515 billion on June 6 to over $11.643 billion on June 13. The surge over the week was shared by an increase of about $101 million in liquid reserves held by the central bank and an increase of about $27 million in liquid reserves held by the scheduled banks.

Among important developments during the week, government borrowing increased by Rs 22 billion to over Rs 600 billion as on June 13, 2009.

Within it, budgetary borrowing increased by Rs 19 billion to Rs 402 billion while borrowing for commodity operations by various government agencies and departments, which is principally for wheat procurement at present, increased by Rs 3 billion to over Rs 200 billion. Break-up of budgetary borrowing showed that almost entire borrowing during the week was made from the State Bank of Pakistan while borrowing from scheduled (mainly commercial) banks rose only by a negligible amount. Government's rising indebtedness to the central bank may pose serious problem for the government when it will come to meet the IMF targets of overall budgetary borrowing and, within it, the downward looking target of borrowing from the central bank. Maybe, the government has to go farther into the already aggressive borrowing made from non-bank elements or seek a benevolent review of the conditionals in view of the on-going operation against the militants in whose success IMF may be as interested as any other stakeholder.

NFA's details for component analytical accounts are available for the month of April 2009. According to this, NFA of the banking system depleted by about Rs 24.6 billion during April.

The entire depletion occurred on account of the State Bank of Pakistan as depletion at scheduled banks was only of a negligible amount. Further analysis of analytical accounts at the central bank showed that net depletion was a result of SBP's incremental claims on the non-residents, which showed an increase of about Rs 44.4 billion, adjusted for SBP's liabilities to the non-residents, which showed a much higher increase, of about Rs 69 billion, during the month.

The claims were in the form of monetary gold, etc, holdings of SDRs, foreign currency, deposits and securities other than shares, whereas liabilities were in the form of deposits, securities other than shares, and loans. (For comments and suggestions research.dept@aaj.tv)


----------



## Neo

*Country in grip of worst-ever loadshedding ​* 
ISLAMABAD (June 30 2009): The worst-ever loadshedding has gripped the whole country, affecting social and business life to the point of no return as the mercury level climbing up with each passing day. Masses have been compelled to stay indoors, while the number of students in schools and colleges across the country has also declined.

Patients in hospitals are also facing torments as mercury hitting 45-degree centigrade in Rawalpindi, Islamabad, followed by more or less same level in Lahore, Karachi, Peshawar and Quetta. The unannounced hours-long loadshedding continued to persist in Rawalpindi, making men, women and children upset as they did not have a moment of respite because of suffocated weather at home and scorching heat under the open skies in almost all the areas - with Islamabad, Lahore and Karachi on top.

Amid no signs of climatic change or rainfall, the routine life of people is worst affected because of break-downs, especially when the air-conditioners and desert-coolers also stop functioning due to heat spell, which is mounting day-by-day. While most of the unscheduled power shutdowns are phrased as 'tripping in transformers' in almost all the cities, the plight of people in smaller towns and villages is reported to be extremely horrible.

Despite loadshedding, the government is reported to have decided another 17 percent increase in power tariff during financial year 2009-10 to settle remaining inter-corporate debt payments under the IMF pressures. The government has allocated low power tariff subsidy allocation in the budget which signifies a strong intent to phase out power tariff subsidies by increasing the power tariff.

However, the move of increasing tariff is likely to face not only a strong political and legal opposition but a general rejection by masses already overburdened with the high cost of living and expensive electricity which absolutely mismatch the per capita income or the income level of the common man.

However, the much sought after improvement in power sector liquidity, the bridging of the systematic gap between generation cost and electricity tariffs is of vital importance. Experts believe that to improve liquidity of the utilities the first step is to address the chronic issue of massive power theft which is generally described as line losses both in KESC and Wapda instead of finding a solution to tariff hikes.

Since the current generation cost and tariff mismatch, it is high time to streamline the cheaper fuel resources such as coal, hydropower and above all nuclear power generation which are cheapest sources of power generation.

According to informed sources, in the present scenario every incremental month of delay in phasing out subsidy would add Rs 6.2billion to the tariff subsidy bill hence the delay in finding cheaper source of power generation would continue to add to the burden of subsidies.

Our reporter from Lahore adds: Traders on Mall Road staged protest against breakdown of electricity on Monday. They blocked the roads near Regal Chowk on Mall Road and threatened to launch countrywide wheel jam strikes if the government fails to ensure smooth provision of electricity.

They said that Managing Director Pakistan Electric Power Company (Pepco) and Federal Minister for Water and Power are making false claims that there will be no load shedding after December 2009.

They said that the ongoing wave of load shedding had destroyed their businesses and if the same situation will prevail the situation would prove lethal for the trade and economy of the country. The protest was staged on the call of All Pakistan Anjumane Tajiran which was announced by its President Haji Maqsood Butt on Saturday. The protest was attended by a large number of traders of Hall Road, Mall Road, Anarkali and Azam Cloth Market.


----------



## Neo

*Current expenditures rise to Rs295bn​* 
Tuesday, June 30, 2009

ISLAMABAD: Out of total Rs372 billion expenditure in the name of pro-poor spending, current expenditures sharply increased by 49.92 per cent to Rs295 billion while actual development spending fell by 82.42 per cent to Rs76.384 billion in the first half of the outgoing fiscal year. 

Current expenditures went up to Rs295.852 billion in the first six months (July-Dec) of 2008-09 compared to Rs148.153 billion in the same period of previous fiscal year, registering an increase of 49.92 per cent. 

However, development expenditures fell to Rs76 billion in the first half against Rs139.343 billion in the same period of the previous year, showing a sharp decline of 82.42 per cent. According to a monitoring and evaluation report prepared by the Finance Division on pro-poor expenditures, current expenditures increased by 49.92 per cent during the first half of FY 2008-09 while development spending decreased by 82.42 per cent. 

The decrease in development expenditure can be accounted for mainly due to a huge drop in development spending in the roads, highways and bridges sector, from Rs43,294 million in the first half of FY 2007/08 to Rs18,948 million during the same period in FY 2008/09, the report states. Current expenditure in this sector remained more or less constant, from Rs2,981 million to Rs3,395 million during the same periods of FY 2007/08 and FY 2008/09, respectively. 

A huge increase in current expenditure during the first half of FY 2008/09 can be credited to the subsidies sector amounting to Rs118.713 billion, which encompasses more than just food subsidies relative to last year in which the total figure was Rs1.361 billion. The most prominent increase in expenditure during the first half of FY 2008/09 over the same period in FY 2007/08 was witnessed in the subsidies sector at the federal level, as well as, in Punjab and NWFP. 

An increase of 20.22 per cent under justice administration was incurred in Sindh, while the largest percentage increase in expenditure in Balochistan was in natural calamities. Total expenditure incurred in pro-poor budgetary sectors up till the second quarter of FY 2008/09 amounted to Rs372.236 billion marking an increase of 29.48 per cent compared to the same period during FY 2007/08. 

The largest increase in PRSP budgetary expenditures during the first half of FY 2008/09 over the same period in FY 2007/08 was witnessed in subsidies (8622.48 per cent), with the total amount incurred in this sector during the period being Rs118.713 billion. 

However, it is difficult to determine the exact comparison between subsidies during the two years since, in contrast to last year, this sector now encompasses all subsidies including financial & fiscal affairs; and commercial affairs in addition to food items during FY 2008/09 and beyond. 

The second and third highest expenditure incurred during the first half of FY 2008/09 was in Peoples Works Programme-II (668.76 per cent) and social security & welfare (131.80) with Rs15,183 million and Rs9,541 million spent in these sectors, respectively. 

During the same period, expenditures incurred in water supply & sanitation; health; and law & order increased by 23.76; 14.83; and 10.66 per cent, respectively amounting to Rs6,495; 26,819; and 42,175 million during the first half of FY 2008/09, respectively. 

Sectors, which observed a large decline in expenditures during the first half of FY 2008/09 over the same period in FY 2007/08, include rural development (85.60 per cent); low cost housing (76.47 per cent); Peoples Works Programme-I (71.34 per cent); population planning (56.20 per cent); and roads, highways & bridges (51.72 per cent). Surprisingly, expenditure in agriculture during the first half of FY 2008/09 decreased by 36.75 per cent despite containing more sub categories including fisheries, forestry & livestock compared to last year, which only tracked irrigation. Continued from page 15

Sectors, which observed a large decline in expenditures during the first half of FY 2008/09 over the same period in FY 2007/08, include rural development (85.60 per cent); low cost housing (76.47 per cent); Peoples Works Programme-I (71.34 per cent); population planning (56.20 per cent); and roads, highways & bridges (51.72 per cent). Surprisingly, expenditure in agriculture during the first half of FY 2008/09 decreased by 36.75 per cent despite containing more sub categories including fisheries, forestry & livestock compared to last year, which only tracked irrigation.


----------



## Neo

* Textile exports could jump to $25bn: FPCCI ​* 
Tuesday, June 30, 2009

FAISALABAD: Textile exporters could bring $25 billion from exports in next two years and $120 billion in next 10 years, if they are provided level playing field.

This was claimed by the FPCCI Chairman, Azhar Majeed Sheikh in the standing committee on export trade on Monday in post budget proposals to Shaukat Tarin, Advisor on Finance.

Major issue pertaining to exports still remains unattended, he said. He demanded exemption of federal excise duty on insurance, banking, port and terminal operations for zero rating purposes. Yet another demand was of refund of duty drawback and sales tax at time of negotiation in banks as is case with deduction of income tax. He also demanded payment of pending refund of earlier years and also release of 60 per cent R&D claims.

Sheikh demanded offsetting the free access of Bangladesh and other regional countries to Europe and America through export incentives to local industry. These constraints have put the exporters in a very difficult cash flow station; he contested and demanded capping of mark-up rate on various products to 7.5pc.

Reactions: Like Like:
1


----------



## Neo

*Textile exports to EU may surge to $15-20bn ​* 
Tuesday, June 30, 2009

KARACHI: Federal Textile Adviser Mirza Ikhtiar Baig has said Pakistans exports to the European Union may increase three-fold if it offers duty-free status. 

A press statement said according to a study conducted by Baig, most of the countries exporting to the EU are given treatment under the Generalised System of Preferences (GSP). The GSP offers a slightly lower rate of duty than the regular duty. 

If Pakistan is given zero-duty status, its exports to the EU may increase from the current $7-10 billion to about $15-20 billion or even $25-30 billion, an increase of $10 to 20 billion. Thats not a high price or extraordinary burden for the EU considering that total imports of the EU are over $800 billion, the study said. 

Pakistan can win this status like other countries which have exports of less than one per cent of total EU imports (excluding oil) and qualify the GSP-plus scheme. Pakistans exports stand at around 1-1.5 per cent. This threshold for qualification of the GSP-plus should be increased to 3 per cent plus allowing three to four years period to sign or ratify required international treaties and conventions, the study said. 

Furthermore, it said the country retains a much higher foreign debt to GDP ratio than that of Vietnam and India and is classified as a moderate to high indebted country by the UN. Vietnam and India are classified as low indebted country. 

The Human Development Index (HDI) of Pakistan, as classified by the UN, is 142, which is higher than Vietnam and India and also higher than Bangladesh which are getting zero duty status from the EU. The study noted the irony that comparing July 2005 or January 2006 to the year 2004, Pakistan is only country, whose zero duty status in the EU was eliminated, while many countries that were not given zero duty in 2004 (Sri Lanka), are now allowed the status. This implies that the EU has withdrawn its support from Pakistans economy, the study said.


----------



## Neo

*Obamas bid to boost exports from Pakistan hits snag ​*
LAHORE: US President Barack Obamas plan to increase exports from Pakistan and Afghanistan to the US has been ensnared in a debate over labour rules between Democrats and companies such as Wal-Mart Stores Inc, Bloomberg reported on Monday.

A law passed by the US House of Representatives limits the products and imposes work conditions that would negate potential benefits, according to the US Chamber of Commerce. The Senate passed an aid bill for Pakistan last week without the trade benefits the House had included in the legislation it approved on June 11. Its not going to help Pakistan, Sarah Thorn, director of international trade in Washington for Wal-Mart, the worlds largest retailer, told Bloomberg. Its the wrong places, wrong products and it has pretty onerous labor rules, she said.

The imposed limits deny trade benefits to products made in certain areas of Pakistan, including the tribal regions. It excludes cotton pants and knit shirts, which account for more than a quarter of the $3 billion a year in textile and apparel Pakistan now sends to the US. But Susan Aaronson, a professor at George Washington University in Washington, said the new labour requirements might ultimately help businesses, which had their reputations harmed after being linked to worker exploitation overseas. Pakistan doesnt have a good record in terms of child labour and the employment of women, she said. This ensures the rule of law will be followed.


----------



## Neo

*Development: Engines of growth ​*Syed Mohammad Ali 


The challenge for policy makers in our part of the world is to develop a strategy which can manage this ongoing accelerating urbanisation in a manner that the existing cities become more liveable, in addition to serving as engines of growth

While urbanisation in developing countries can encourage economic growth, rapid and unplanned urbanisation also creates major problems by putting pressure on housing, infrastructure, public services, and the environment.

Pakistans cities, for example are already accommodating some 35 percent of the total population, but with the urban population growth rate outstripping national population growth, that figure is set to reach 46 percent by 2025 and 64 percent by 2050. Increasing poverty has accompanied urbanisation in Pakistan, as a result of rural-to-urban migration and the lag in the formal economys capacity to absorb the growing population of unskilled labour, and the cities capacities to provide basic urban services.

In Karachi, which is now one of the largest cities in the world, more than half of the population lives in informal high density and environmentally degraded settlements (katchi abadis) or slum areas; 89 percent of the katchi abadi population has incomes below the poverty line.

The challenge for policy makers in our part of the world is to develop a strategy which can manage this ongoing accelerating urbanisation in a manner that the existing cities become more liveable, in addition to serving as engines of growth. In devising such a strategy, a fundamental shift in approach is however required of moving away from the practice of regarding municipal service delivery as consisting of elements or projects to be funded on a piecemeal basis towards a more holistic concept of managing cities as social and economic systems.

In fact, while they are unique, South Asian cities are also facing similar challenges, and do have much to learn from each other. The analysis of development dynamics since the 1990s in India very clearly shows that the process of urbanisation has become exclusionary in nature, as only a few large cities with a strong economic base are able to raise resources for development, leaving out small and medium towns.

With governmental investment in infrastructure and basic amenities declining in smaller towns over the years and their failure to attract private or institutional investment, the disparity within the urban economy is likely to increase in coming years, an issue which not only Indian cities but also other big cities in neighbouring countries also face.

Consider for instance the urbanisation process underway in Pakistans Punjab, which is well above the South Asia average, and is set to further increase in the coming years. The city of Lahore alone has a population today that is larger than the total urban population of Punjab in 1951. In 2009, Punjab had five cities with populations of over one million. Punjabs future will increasingly be an urban one. But whether our planners learn the required lessons from trends that have been emerging in India so as to make our ongoing urbanisation processes more inclusive remains to be seen.

Unfortunately, the trend of a centrally managed city with accountability not to citizens but upwards seems a common regional phenomenon. Dhaka, for instance, is managed through several line agencies that report to different line ministries at the central government level and also some services with direct responsibilities under the mayor, often with overlapping mandates. As a result the lines of accountability are blurred for the common citizen and even the coordination of services becomes very difficult. To address traffic congestion, Dhaka will need to coordinate between traffic police, roads infrastructure, land planning, and public transport, to name a few areas. But not all these areas are under the mayor  many belong to central line ministries. Not surprisingly, real failures occur due to this confusion.

Given this prevailing situation, it should not be surprising to note that no city in South Asia delivers continuous water, 24 hours a day, seven days a week. Water supply and sewerage coverage ranges from 46 to 70 percent across major cities of our own country. The water quality is also poor, and distribution networks are old and suffer from leakage and contamination. There is no real sewage treatment in any urban area; most is dumped into the sea or rivers through open channels, creating serious environmental problems. Furthermore, only 60 percent of solid waste generated in Pakistani cities is collected; most is usually deposited on open ground or in poorly designed dump sites on the outskirts of built-up areas.

Moreover, most of our cities do not have strategic development plans or programmes to support cultural heritage and the environment. The movement of people within most cities is difficult because of the absence of effective public transport. A backlog of 6 million housing units nationwide has resulted in overcrowding within the existing stock and the formation of many informal and illegal settlements with minimal basic amenities.

While the list of our common problems can easily become longer, it is also important to realise that the urbanisation process in Pakistan is not uniform, and it therefore does require flexible policies.

For instance, there are over forty urban areas in the Punjab including five major cities and several smaller cities  eight of them with populations between 200,000 and one million inhabitants  which is a unique case within the Pakistani context. An urban triangle of Faisalabad, Gujranwala and Sheikhupura/Lahore comprises 30 million people, and forms a potential growth pole or engine of growth. But realising this potential perhaps requires joint planning committees for this region, an issue that has not yet received much attention by urban policy makers.

The lack of a comprehensive vision, as well as governance and planning weaknesses, accompanied by inadequate investment in urban development can result in uncontrolled and unplanned development of cities and towns, deterioration in the urban environment and deficiencies in all forms of urban services.

Global experience suggests that creating cities that are accountable to their constituencies requires a systemic approach. First, cities need to be empowered. This empowerment includes giving cities clear responsibilities, own-sources of finance or tax base, and access to functionaries that report directly to city management. While devolution and the creation of city districts was a right step in this direction within the Pakistani context, the fate of this devolutionary process now hangs in the balance due to the current political compulsions.

The effective governance of metropolitan areas cannot occur by trying to fix the pipes, as they say, but by fixing the institutions that fix the pipes. It is this latter approach which must be adopted by all future major decision makers who have a say in urban policy making so as to ensure delivery of sustainable municipal services.


----------



## Neo

*ADP for farm sector up by 29pc in Sindh ​*By Muzaffar Qureshi 
Saturday, 27 Jun, 2009

KARACHI: The Annual Development Plan (ADP) allocation for the agriculture sector for 2009-10 in Sindh is 29 per cent higher compared to last year with a view to boost agriculture, which contributed significantly to the last years GDP.

Sources said that the new ADP for agriculture is Rs2,955.25 million against Rs2,292.5 million allocated last year. They said that major allocation of Rs1,169.95 million has been made for six schemes for farm research, Rs1,149 million for three schemes in farm mechanisation, Rs439.9 million for three schemes in water management and Rs184 million for agriculture extension.

The major schemes, which are likely to develop agriculture in a big way include survey, mapping and sampling of soils and reclamation (Rs400 million); development and preparation of quality seeds under public private partnership (Rs469.9 million); promotion of cut flowers in Sindh through universities (Rs100m); provision of 3,000 tractors to farmers (Rs808m); Tunnel green house cultivation (Rs100m); and installation of wind mills, solar pumping for irrigation water and land reclamation from water-logging and salinity (Rs200m).

Meanwhile, Sindh Chamber of Agriculture has said that ambitious schemes are drawn every year through ADP but their implementation is never ensured.

Anwer Bachani of the Chamber told Dawn on Thursday that most of the ADP schemes this year were of superfluous nature whose results could not be seen on the ground.

Commenting on a few schemes he said that the chamber has always demanded that distribution of tractors be made through transparent balloting to eliminate chances of corruption. 

He said most of the tractors were shared by big landlords and the ordinary farmer is ignored.

Similarly, tunnel green house cultivation is mainly meant for areas affected by harsh winter conditions whereas in Sindh winter is moderate, he added.

Mr Bachani complained that growers representatives were never taken into confidence while drawing ADP schemes.

Shortage of water and fertilisers has threatened cotton and sugarcane crops.

Sindh Chamber of Agriculture has welcomed President Zardaris move to release more water for Sindh from Taunsa Barrage but said that crops need immediate water and growers were praying for early monsoon rains. The water released from Taunsa would reach Sindh in 15 days.

Shortage of urea is also affecting growth of crops as Sindh has received only 217,000 tons of urea out of its quota of 700,000 tons for the current season which lasts from April to September.

According to the data provided by the ministry, the province will get 41000 tons of urea in June followed by 69,000 tons in July. 

However, it admitted that only 18,000 tons of urea was supplied in April and about May supplies it has no details which created an acute shortage of urea setting its price to Rs9,000 per bag against the controlled rate of Rs750.


----------



## Neo

*WB links $200m BISP loan to IMF review talks​* Wednesday, July 01, 2009

ISLAMABAD: The World Bank has delayed approval of a $200 million loan for the Benazir Income Support Programme (BISP) by linking it with a satisfactory outcome of upcoming review talks between Pakistan and the International Monetary Fund (IMF), official sources confirmed to The News.

The deliberations will be held from July 3 to 10 at Istanbul, the sources said here on Tuesday. The WBs executive board was scheduled to approve $200 million for the BISP in its meeting held on June 18 in Washington, but did not do so. Later, the amount was linked to the review talks between the IMF and Pakistani side, the officials added.

When a high-level official in the Economic Affairs Division (EAD) was contacted on Tuesday, he confirmed that the approval of $200 million for the BISP and $100 million for the Higher Education Commission (HEC) as well as technical assistance for Thar Coal was delayed and linked to the review talks with the IMF.

The sources quoted WB officials based in Islamabad as saying that there was internal arrangement by the WB, otherwise there was no other problem linked to the much-trumpeted BISP.

However, the Asian Development Bank (ADB) had recently approved its lending facility for the BISP but the WB was showing reluctance to move ahead by approving IDA credit (soft loan) for the programme.

However, on the insistence of the WB, the government decided to conduct poverty scorecard survey of households in selected 16 districts of the country as a pilot project which would be completed by the end of July. This pilot project will be extended to other areas and completed by December.

After completing the poverty scorecard survey, the existing beneficiaries list, recommended by parliamentarians, would be replaced with the selected persons found through the survey.

The need for effective monitoring arises because the Planning Commissions monitoring wing is not authorised to assess the performance of BISP under which Rs70 billion would be distributed among seven million beneficiaries because the PC cannot monitor funds allocated under the head of current expenditures. The PC is only authorised to monitor development projects.

According to the WBs Programme Information Document (PID) which is at appraisal stage, total financing of $625 million is required for establishing safety nets, out of which the International Development Assistance (IDA) would be around $200 million while Pakistan would allocate $425 million from its own budgetary resources.

The development of effective institutions and strong monitoring and evaluation systems that can provide information on programme performance and gain the confidence of the public could mitigate this risk, the report states and added that the consensus across the political spectrum on the need for a safety net programme would also ensure continuity of the programme (though the name or institutional home may change). The WB estimates show that the BISP is expected to reduce poverty headcount rate by 6.4 percentage points. In addition, the basic income support to the poor is also expected to have a positive impact on human development outcomes and promote gender equity since the cash transfers supported by this operation are provided to the female head of the eligible families.

Reactions: Like Like:
1


----------



## Neo

*Cement exports up 47pc, local sales down 14pc​* Wednesday, July 01, 2009

KARACHI: Cement sales in fiscal year 2009 (FY09) posted an increase of two per cent year-on-year (YoY) to 30.6 million tonnes compared to a three-year Compound Annual Growth Rate (CAGR) of 23 per cent.

Local dispatches stood at 19.3 million tonnes, down 14 per cent YoY. However, exports depicted an astounding jump of 47 per cent to 11.3 million tonnes.

On month-on-month basis (MoM), local and export dispatches were up five per cent and one per cent respectively. Record Public Sector Development Programme (PSDP) allocation of Rs621 billion in the budget for FY10, reduction of Rs10 per bag in excise duty and declining interest rate set an optimistic outlook for the cement sector, JS Research reported on Tuesday.

Economic slowdown, political uncertainty and security situation along with budgetary constraints hampered infrastructure activities as well as private sector development projects in FY09. Resultantly, local cement dispatches dropped 14 per cent to 19.3 million tonnes.

However, this trend has started to reverse as local dispatches for June 2009 came in at 1.7 million tonnes, up 5 per cent MoM. It is expected that Rs219 billion PSDP allocation for infrastructure development and materialisation of dam construction activities announced in the budget remain major demand triggers, which would boost local dispatches in coming months.

On the export front, demand from the Middle East and Afghanistan drove exports upwards during FY09 as exports rose to a record 11.3 million tonnes, up 47 per cent YoY, with June sales posting one per cent MoM increase to 1.2 million tonnes.

Major export markets Qatar and Oman are to increase their capacities by 51 per cent and 77 per cent respectively with $304 million worth of projects in the pipeline.

Capacity expansion in Oman and Qatar along with untapped markets (African countries and Sri Lanka) will provide stimulus to exports.

Reactions: Like Like:
2


----------



## Neo

* Pakistans exports to UK cross $1bn​*
Wednesday, July 01, 2009

LONDON: Pakistans exports to the UK have crossed $1 billion this year which is for the first time in history.

With growth rate of 16.29 per cent during the period July 2008-April 2009, Pakistan has seen all-time high exports to the UK, which has been one of Pakistans top three export markets in the world for the last four years, from 2005-06 through 2008-09.

Exports from Pakistan to the UK were $1 billion during financial year 2007-08. The exports mainly comprised items such as textile yarn, rice and cereals, fruit and vegetables and value added goods like apparel and clothing accessories, power generating machinery and equipment.

Officials at the Pakistan High Commission explained that by diversifying a huge potential for exports could be exploited. Three new sectors are high quality replica furniture, healthcare items including pharmaceuticals, surgical and beauty care instruments, herbal medicines and hospital linen; and dairy and Halal meat products.

In this context, the Pakistan High Commission has planned sector-specific conferences. A conference for promotion of healthcare sector is being organised from July 21 to 23.

As market access remains a crucial factor in expanding trade, Pakistan has insisted time and again for concessions and preferences such as GSP plus.

The surge in exports due to effect of award of GSP plus in the past is evident from the comparison of data of FY 2003-2004 with the successive years. According to officials, in UK there is great interest for trade with Pakistan which could be translated into growth of exports through greater outreach to importers and by rectifying misperceptions about Pakistan.

Reactions: Like Like:
2


----------



## Neo

*Kashmir can fulfill Pakistans power needs: Atiq​* Wednesday, July 01, 2009

LAHORE: Azad Jammu and Kashmir has the potential to meet Pakistans power needs through its natural hydropower producing sites for over 17,000 megawatts besides earning huge foreign exchange by developing its tourist spots.

President Muslim Conference and former Prime Minister AJK Sardar Atiq Ahmad Khan stated this in an exclusive interview with The News. He said during his tenure as AJK PM the experts identified 22 hydro-electric projects and ground-breaking ceremony of six was performed. Work on these projects is in progress.

He said the AJK currently needs only 350MW of electricity that in mid-term after progress on tourist spots might go up to 500MW. The balance electricity, he said, could be added to the PEPCO system and might even be exported.

He said the AJK has numerous spots which could attract tourists from across the world. Governance in AJK, he added, is better than both India and Pakistan and even today foreigners roam about freely there.

He said Pir Chenasi, for instance, is a beautiful location a few kilometers away from Muzaffarabad. It is at a height of 9,300 meters and could be a hot tourist spot. He said Pir Chenasi could be connected with Muzaffarabad through cable car or chairlift.

He said when there is a simmering heat in the AJK capital during summers the temperature in Pir Chenasi ranges from 6-10 degree centigrade. He said survey for the chairlift has been completed and now the government should start its implementation.

He said many beautiful regions of AJK are near its capital city but the access roads take many hours to reach. He said feasibility study to connect attractive tourist spots through tunnels has been completed and work on two of these tunnels has started. This would reduce the travel time to these spots substantially.

Atiq said the AJK government would require a lot of funds to complete these projects. These, he added, could be arranged through the Kashmiri Diaspora living abroad. He said there are more than 1.5 million immigrants from Kashmir who are living in the developed countries having liquid assets of more than $25 billion.

He said the expats from Kashmir would willingly invest in commercially viable projects in their homeland provided they are properly briefed and motivated. He said they could even build a dry port and airport on the same pattern as done by the entrepreneurs of Sialkot. He said salvation of Kashmir and Pakistan lies in accelerated economic growth.

He said the economic progress in AJK motivates people in the occupied territory to find a just and fair solution to Kashmir issue. He said in view of widespread unemployment among doctors in occupied Kashmir the AJK government has employed them in its hospitals as it considers Kashmiris on both sides of the border as same.

Former AJK Prime Minister said people of Kashmir are bestowed with the gift of crafts that help them earn decent livelihood. He said cashmere shawls are famous all over the world and are a major source of earning for women of Kashmir. He said cottage and small industries need government attention that could generate billions in foreign exchange.

He said Azad Kashmir ever since liberation from India has made a tremendous progress in the fields of health, education and social well being. Today the literacy rate in AJK is 73 per cent which is much above the literacy rates in both India and Pakistan. The per capita income in AJK he added is also higher than its neighbors.

Reactions: Like Like:
2


----------



## Neo

*Qatar to start gas supply from Nov​*
Wednesday, July 01, 2009

ISLAMABAD: Federal Minister for Investment, Waqar Ahmad Khan said here on Tuesday that Qatar would start providing Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) to Pakistan by November this year.

He was addressing a press briefing here after returning from a visit to China, Hong Kong and Qatar.

Qatar would provide 1.5 million tons of LNG and one million tons of LPG to Pakistan, he said, adding that the decision on necessary logistics for fuel transportation would be taken within a month.

Terming his visit to these countries successful, the federal minister said that he got a positive response from investors as Pakistan offers great investment opportunities in various fields of economy.

Waqar said that nobody in China and Hong Kong raised questions about security in Pakistan, rather, they want to have strategic investment in Pakistan to lead the country as well as the region towards economic stability.

The minister said Pakistan would attract $10 billion foreign investment this year including $6 to $7 billion from China, adding that major investments would come in telecommunications and oil and gas sectors.

He said that from China, major investment is coming from Metallurgical Corporation of China (MCC) and China Mobile, adding that MCC eyes on investing up to $4 billion, whereas the mobile company aims to reach 25 million consumers.

He said that an MCC delegation is expected to visit Pakistan on July 9 to explore various options for investment. He said China would also host a seminar which would provide Pakistan with an opportunity to attract potential Chinese investors to invest in Pakistan, adding that this would be followed by another seminar to be held in Pakistan.

He said that China would be spending $100 billion in foreign investment and it would be Pakistans top priority to attract a maximum portion of this investment.

He said that a Chinese-specific Special Economic Zone is being established where Chinese investors would be offered tax free import of plants and machinery to establish their industries.

He said Thar Coal reserves would also be developed on Public Private Partnership basis to produce gas, adding that once operational this project could make the country an LNG exporter. He said that UAE provided a 350 megawatt power plant to Pakistan free and would provide another 300 megawatt plant soon.

He noted that Pakistans environment was conducive for investment as there were no political confrontations due to the current governments political reconciliatory policy.

Reactions: Like Like:
2


----------



## Neo

*Stocks experience worst performance in ten years​*
KARACHI: The booming stock market, which was projected as a strong indicator of improved financial health of the country in the last few years fizzled out in 2009-10 that ended on Tuesday by recording its worst performance in the last ten years.

Though having gone through the devastating times in March 2005 resulting in a major scam, stock market consolidated itself later on and was again on track albeit the fate of inquiries made into it still hang on.

The outgoing fiscal year, ending June 2009, was the worst year for Pakistan equity market as the key benchmark KSE 100 Index lost 42 percent in local currency terms (11 percent decline in FY08

"This was the largest annual decline in percentage terms in last 10 years. The performance of share prices was bad compared to average annual Pak Rupee return of 33 percent in the last 10 years", Mohammad Sohail, Chief Executive Officer (CEO) Topline Securities said. The Index fell 52 percent in first half of FY09 but recovered 23 percent in second half.

In dollar terms, Pakistan market lost 51 percent (21 percent decline in FY08) compared to average annual US dollar gain of 30 percent in last 10-years. Market capitalization eroded by 44 percent last year from US$47.3bn to reach US$26.5bn now.

Following its record high level of 16, 576 on April last year, the painful period of the stock market started, culminating in the imposition of price floor for three and half months.

The closure of the market, was the main reason behind this huge dent in not only share prices but also in investors confidence. This along with weakening economy, political tension, security concerns and global financial meltdown caused foreigners to offload their shares aggressively and that further brought the equities down sharply in the outgoing year. Selling by financial institutions that provided loan against shares and failed to recover the mark to market difference also contributed to the fall.

Karachi bourse that fell by 35 percent (47 percent in US dollar) before the imposition of price floor, crashed by 36 percent in 12 trading sessions after the lifting of floor rule. However some improvement was seen later on as it posted a gain of 23 percent since Jan 2009. The charm of Pakistan market with high volume and Pakistan was amongst those markets with one of the highest volume to capitalization ratio. However, the main casualty of the last year crisis was the volume that is depth of the market.

The average daily volume dropped by 56 percent to 106 million shares a day from 241 million shares in FY08. In dollar terms the volume fell by 86 percent to $57 million a day from $409 million. The main reason of low volumes was the price floor imposition when hardly any trading occurred during that period. The closure of CFS and Deliverable Futures market by the regulators also trimmed down the volumes after the crisis.

Global financial crisis and weakening economic fundamentals generated selling by foreigners from start of the year in July. However, imposition of price floor, signaling indirect capital control, resulted in aggressive selling by foreign funds in a low volume market. Pakistan's exclusion from MSCI Emerging market index after a gap of 14-years also forced investors to trim their exposure in Pakistan.

Offshore investors were net sellers to the tune of around $450 million that is Rs 34 billion last fiscal year. Foreigners that used to hold shares worth $5.2 billion in at the stock market peak in April 2008 are currently holding $1.2 billion in Pakistan, according to SBP's numbers.

Reactions: Like Like:
1


----------



## Neo

*Pak to produce 9,700MW renewable power by 2030​*
ISLAMABAD: Federal Minister for Water and Power, Raja Pervez Ashraf on Tuesday said Pakistan had set high targets for itself including renewable energies including 5 percent (approximately 9,700 MW) of the electricity generation on grid by year 2030 and the replacement of 10 percent diesel with bio-diesel by year 2025.

He was addressing the representatives of more than 120 countries in the second session of the preparatory commission of the IRENA being held in resort city of Sharm-ul-Sheikh, says a message received from Cairo, Egypt, here.

Reactions: Like Like:
2


----------



## Neo

*Pakistan Stocks See Foreign Buying in June, Credit Suisse Says ​*
July 1 (Bloomberg) -- Pakistan stocks lured overseas investors in June for the first time in more than a year amid an improving economic outlook and the cheapest valuations in Asia, Credit Suisse Group said.

Foreigners bought a net $42 million of Pakistan stocks last month, the first time buying exceeded selling since April 2008, Credit Suisse analyst Farid Khan said in a report today. Funds may have returned after MSCI Inc. added the nations equities to its frontier-market index with effect from May 29, he added.

Pakistans benchmark Karachi Stock Exchange 100 Index rose 4.4 percent last quarter, the smallest gain in Asia and the ninth-worst performer among 85 indexes tracked by Bloomberg globally. It lagged behind a global emerging-market rally as the army clashed with militants in an offensive that began in April.

The return of foreign portfolio flows should help recover local market sentiment, Khan said. It is about time the locals start to see some bright spots that have started to appear on the horizon.

The benchmark stock index is valued at 7.6 times current- year earnings, the lowest in Asia. The MSCI Asia-Pacific Index has a multiple of 23 times.

Credit Suisse reiterated an April forecast that the Karachi index will rise to 9,000 by year-end, citing a bailout by the International Monetary Fund and declining interest rates. The forecast is 26 percent above yesterdays close of 7,162.18.

MSCI, whose indexes are tracked by money managers with $3 trillion of assets, removed Pakistan stocks from its emerging- market index at the end of 2008 after the South Asian nation imposed restrictions on selling stock. Those limits were lifted in December.

Reactions: Like Like:
1


----------



## Neo

*WB grants $50m IDA credit to Pakistan​*Thursday, July 02, 2009

ISLAMABAD: The World Bank has approved a $50 million IDA (the International Development Association) credit to Pakistan, designed to improve water resource management and enhance agricultural productivity in Sindh.

According to the WBs announcement here on Wednesday, about half of Sindhs 35 million people live in rural areas, and one-third of them live below the poverty line. Rural people, 70 per cent who are landless, derive almost 60 per cent of their income from agriculture.

The additional financing for the Sindh On-Farm Water Management Project aims to improve the efficiency, reliability, and equity of irrigation water distribution at watercourse levels and enhance agricultural productivity. Under the additional financing around 3,000 watercourses will be improved, which comprises earthen improvements, lining, installation of concrete turnouts, and culverts in watercourses.

Irrigation and drainage are critically important to Sindhs irrigated agriculture, which is the backbone of the economy, said Yusupha Crookes, World Bank Country Director for Pakistan.

The improved watercourses under the original Sindh On-Farm Water Management Project have made positive impacts in terms of enhanced and more equitable water supply. This additional financing will help extend these benefits to broader sections of the farming community in Sindh.

The province has about 42, 000 watercourses and so far 17,000 watercourses have been improved/lined under various on-farm water management programmes, including the Sindh project.

The additional financing will also support efforts to boost agricultural productivity through demonstration on tunnel farming for high value crops, training of farmers in improved water management, agricultural practices, new technology and information dissemination.

Participation of the farmers themselves in irrigation management is vital for the long-term sustainability of the irrigation system, said Tumurdavaa Bayarsaihan World Bank Senior Rural Development Specialist and project task team leader. This project supports capacity building and social mobilization of farmers in order to develop and strengthen sustainable watercourse associations which will participate in planning, designing, and implementing the rehabilitation works.

The credit from the IDA, the World Banks concessionary lending arm, carries a 0.75pc service fee, a 10-year grace period, and a maturity of 35 years.

Reactions: Like Like:
1


----------



## Neo

* Govt to electrify 7,000 villages through solar energy​*Thursday, July 02, 2009

ISLAMABAD: Federal Minister for Water and Power Raja Pervez Ashraf has said that the government has set a target to electrify 7,000 villages in the next five years through solar energy, which cannot be electrified through grid.

He was addressing the representatives of more than 120 countries in the second session of the preparatory commission of IRENA held in the remote city of Sharm-al-Sheikh, stated a message received from Cairo here.

The minister said that Pakistan is facing the same issues in developing and utilising its renewable resources as many other countries in a similar situation. It is, therefore, important for us to identify and address the barriers to developing renewable energy.

We feel that the key barriers are availability of state-of-the-art technology, skills and knowledge and the necessary financial mechanism for the promotion of technology at all levels.

We also need to develop a global financial mechanism that responds to the special requirements of the renewable energy sector. Pakistan feels that if a level-playing field is provided to the renewable energy sector, they are the least expensive, environment friendly and the most sustainable resources of energy.

He said that Pakistan has also set high targets for itself including renewable energies to add five per cent (approximately 10,000 MW) of electricity generation to the grid by the year 2030 and the replacement of 5pc diesel with bio-diesel by the year 2015 and 10pc by 2025.

The minister extended full support of Pakistan to the newly perceived International Renewable Energy Agency (IRENA). He also took part in the voting proceedings for the selections of the place for the Headquarters of IRENA and the election of its Director General.

A newly conceived, carbon neutral and modern city of UAE, Masdar is also one of the hotly contested places for IRENA headquarters.

Ashraf highlighted the commitment of Pakistan in the area of renewable energy by addressing the auditorium full of international delegates, professionals and technical experts.

He emphasised that renewable energy technologies would be an essential element in Pakistans energy future by making contributions to the diversity and security of the energy supply of our country and to its economic development.

Reactions: Like Like:
1


----------



## Neo

*Govt plans to generate Rs240bn via NSS​*Thursday, July 02, 2009

ISLAMABAD: The government plans to generate Rs240 billion through the National Savings Schemes (NSS) in the new fiscal year 2009-10 and automate 44 of the busiest centres of Central Directorate of National Savings (CDNS) by allocating Rs68 million.

The fiscal deficit target of 4.9 per cent of gross domestic product, equivalent to Rs722.5 billion, depends on resource inflow through domestic and external sources and the NSS, which is targeted to generate Rs240 billion.

Talking to The News, Central Directorate of National Savings (CDNS) Director General Zafar Sheikh was quite confident that after corporatisation of the crucial institution the government would be able to achieve desired results.

CDNS made history by crossing the Rs250-billion mark last fiscal year 08-09, which played a crucial role in meeting the fiscal deficit target of 4.3 per cent. Its figures would be made public after a few days.

We will ensure automation of 44 busiest centres of CDNS all over the country, Zafar Sheikh said.

Answering a query about reduction in profit rates from July 1, he said that it would apply to new investors only and existing investors would not be affected by the reduction.

Pensioner as well as Behbood schemes will be dealt with as a special case, he said, adding that if the rate increased investors in pensioner and Behbood schemes would also benefit.

Sources have said the government has allocated around Rs68 million for modernising CDNS in 2009-10. Profit rates of NSS will be reviewed on quarterly basis and the next review will be done by September 1.

Despite reducing profit rates for various products offered by the NSS, the finance ministry believes that it could attract the desired amount by promoting investments among the lower middle class, especially pensioners.

CDNS is going to offer new products in the current fiscal year, paving the way to achieve the desired target, said the official.

The government has reduced the rates of profit on National Savings Schemes. According to CDNS, the rates of profit on Special Savings Certificates (Registered)/Accounts, Regular Income Certificates, Bahbood Savings Certificates/ Pensioners Benefit Accounts and Savings Accounts have been cut to 11.67pc, 12.00pc, 14.16pc, and 8.50pc per annum respectively.

The rate of profit on Defence Savings Certificates ie, 12.15 per cent pa and the value and number of prizes on prize bonds remain unchanged.

Reactions: Like Like:
1


----------



## Neo

*Tea import falls​*
Thursday, July 02, 2009

KARACHI: Tea import has declined by 0.9 per cent to $ 187.8 million in value during year (July-2008 to June-2009), due to smuggling under Afghan Transit Trade (ATT) and high prices.

Pakistan Tea Association (PTA) Chairman Mohammad Hanif Janoo said on Wednesday, that Pakistan had imported tea worth $189.5 million during July-2007 to June-2008.

He said that another reason for low import was the high prices of tea in the international market. The average price is $2.08 per kilo during 2008-09 while it was $1.18 per kg during 2007-08.

He said the total tea import during the period under review includes 89.8 million kilograms of black tea worth $186.6 and 1.05 million kg of green tea amounting to $1.23 million. The largest exporter of tea to Pakistan was Kenya with 48.4 million kg of black tea worth $115.75m.

Reactions: Like Like:
1


----------



## Neo

*Model dairy farm set up in Mansehra​*Thursday, July 02, 2009

PESHAWAR: A model dairy farm and training centre has been set up in Mansehra district in an effort to acquaint local communities with scientific techniques in livestock and dairy farming.

The farm will be utilised as a demonstration spot and will serve as a training centre for the organisations working in the livestock and dairy sector. Under the Expanded Dairy Development Programme (EDDP), 300 women-headed families will be trained under the Farmer Field School (FFS) approach in livestock management and dairy development, said speakers at an inaugural ceremony of the project the other day.

Dr Muqarab Ali Khan, Director Livestock Research Station Jabba Mansehra and former provincial minister for agriculture Qari Mahmood were present at the ceremony. It was attended by the local government representatives, officials, representatives of national and international NGOs and a large number of community members. The farm has been established under the EDDP of Hashoo Foundation.

Speaking on the occasion, Hashoo Foundation Project Manager, Sajjad Ali highlighted the objectives of the programme. He emphasised on the local community to take advantage of the project to increase milk production and better manage their livestock so that their socio-economic conditions could be improved.

Dr Muqarab Ali Khan urged the NGOs working in the area to replicate the model throughout the region so that all the communities of the area could benefit. He also assured full support for the development of dairy and livestock sector in the region.

Reactions: Like Like:
1


----------



## Neo

*Net foreign buying seen in June​*Thursday, July 02, 2009

KARACHI: After 15 consecutive months of net selling by offshore investors, the month of June saw net buying by foreign fund managers in Pakistans stock markets, National Clearing Company data shows.

This is mainly in line with the funds flowing to all emerging markets for the last few months. Although net buying was only $5.6 million in June, it clearly signals that funds are slowly moving towards Pakistani markets which are now trading at a 50 per cent discount compared to regional markets on price to earnings ratio.

However, the unfortunate part is that the amount of funds that is being invested in Pakistan is far lower than regional inflows. A record net inflow has been seen in emerging markets in the second quarter of 2009 led by China, India and Brazil. But contrary to the historical trend, the money coming to the country is far less this time.

For instance, fund managers net buying in Indian equity market was $800 million in June and it was more than $5 billion in the last quarter. Compared to this a nominal net buying of $5.6 million was seen in Pakistan in June and for the quarter ending June 2009 there was net selling of $29 million.


----------



## inayatali

Pakistan&#8217;s economy falling prey to militancy 


KARACHI: Growing extremist violence has crippled the economy in northwest Pakistan, made tens of thousands of people unemployed and exacerbated the poverty that breeds fundamentalism, business leaders say.

North West Frontier Province (NWFP), which borders Afghanistan and Pakistan&#8217;s capital Islamabad, is rich in agriculture, minerals, stunning mountain scenery once popular with tourists and multiple local industries.

But the 21st century has brought decline owing to extremist violence in the adjacent federally administered tribal areas (Fata) and the NWFP district of Swat, where the Taliban launched an uprising two years ago.

&#8216;Around three-quarters of our industries have closed since the war in Afghanistan started but most have closed in the last two to three years,&#8217; Sharafat Mubarak, president of the local chamber of commerce and industry, told AFP.

Before the September 11, 2001 attacks on the United States which precipitated the invasion of Afghanistan and ensuing Taliban insurgency, 2,254 industries were functional in NWFP, of which just 594 operate today, he said.

&#8216;We had more than 100,000 people employed in those industries but now just 18,000 are there and the rest have lost their jobs,&#8217; Mubarak said.

The decline has accelerated over the past six months, during which Pakistan battled Taliban fighters, agreed a ceasefire in part of NWFP and last month launched a renewed offensive as militants advanced further towards Islamabad.

Once known affectionately as the &#8216;Switzerland of Pakistan&#8217; and frequented by Western holidaymakers, Swat is today a national symbol of horror where violence last year halved receipts from tourism, official figures show.

The main industries in NWFP and Fata include marble, chemicals, rubber, plastic, food, tobacco, handicrafts, paper, leather and furniture.

The match industry, the only export-oriented sector in NWFP and which once employed around 5,000 people, has hit difficulties as a substantial quantity of the required wood comes from the conflict-torn districts.

Mubarak said banks have reduced their lending to local industry because of the growing instability and element of risk.

&#8216;Only 32 billion rupees out of 852 billion rupees lent by banks in Pakistan were granted to industries in NWFP last year. The lending has further reduced this year,&#8217; Mubarak said.

&#8216;Thousands of people from the tribal areas who have been rendered jobless are at the mercy of the militants,&#8217; he said.

&#8216;It makes it so easy to hire unemployed youth for their cause. The government should stop this by helping us revive the industries,&#8217; he added.

Jahan Manan, head of the independent Centre for Public Policy Research, said the root cause of decline was Afghanistan, wracked over many years by civil war and insurgency.

&#8216;NWFP&#8217;s geographical position as a frontline province in international conflicts for the last 30 years has had a damaging effect on its economy. The unrest and insecurity discourage private investment,&#8217; he told AFP.

The State Bank of Pakistan reported a decline of 13 per cent in foreign direct investment in the country during the first 10 months of this financial year, which runs from July 1 to June 30, compared with the same period last year.

&#8216;The security concerns in Pakistan&#8217;s northwest and the global recession are both responsible,&#8217; said Mohammad Sohail, chief executive of Topline Securities brokerage house.

According to the finance ministry, Pakistan&#8217;s decision to join the US-led &#8216;war on terror&#8217; meant massive unemployment in affected regions and increased rural poverty, as state spending focused on law enforcement, not development.

Business leaders want the government to offer a package of incentives such as tax and duty exemptions to revive the economy, but for now the state is focused on dispensing millions of dollars in emergency aid to the displaced.

Reactions: Like Like:
1


----------



## Neo

*FATA militancy cost Pakistan $ 2,146m​*
PESHAWAR: Militancy in the Tribal Areas has cost Pakistan around $2,146 million while the fighting has so far killed over 3,000 civilians, a government report said on Wednesday.

The report  Cost of Conflict in FATA  prepared by the Planning and Development Wing of the FATA Secretariat said the social cost of the militancy was far greater than the cost of infrastructure, economic and the subsequent environmental loss.

However, it said the cost of the military operation is beyond the scope of this report and would be worked out separately by the concerned agencies.

The report put the social cost of the conflict at $1,109 million, the cost to security and internal displacement at $572 million, the environmental cost at $188 million, the economic cost at $119 million and infrastructure losses at $103 million.

Pakistan is suffering a series of overlapping crises due to the conflict in FATA... and is need of immediate humanitarian assistance, the report said.


----------



## Neo

*Stocks witness: net foreign buying after 15 months​*
KARACHI: The last month of the previous financial year saw encouraging development in the shape of foreign funds inflow in the local capital market with net buying in the month of June.

The net buying of portfolio investment was recorded after 15 consecutive months of net selling in the stock market when it passed through its worst crisis in the history when foreign investors rushed out because of negative developments on various fronts during this period.

Although, the entire period under review was disturbing for the stock market players, however the imposition of floor in the stock market and post-floor period was more painful  both for local and offshore investors.

The outgoing month of June 2009 saw net buying by foreign fund managers in Pakistan stocks, according to National Clearing data. This is mainly in line with funds flowing to all emerging markets since last few months.

Although, analysts pointed out the net buying was mere $5.6 million in the month of June, which clearly signals that funds are slowly moving towards Pakistan that is now trading at 50 percent discount to regional markets on price earnings ratio. However, the unfortunate part is that the amount of funds that is being invested in Pakistan is far lower than the regional inflows.

A record net inflow has been seen in emerging markets in the second quarter of 2009 led by China, India and Brazil. But contrary to historical trend, the money coming to Pakistan is far less this time. This is mainly due to foreign investors bad experience as Pakistan market regulators put a price floor last year for more than 100 days and as a consequence MSCI downgraded Pakistan to Frontier Index.

For instance, fund managers net buying in Indian equity market was $800 million in June and it was more than $5 billion in the last quarter. Compared to this a nominal net buying of $5.6 million was seen in Pakistan in June and for the quarter ending June 2009 there was net selling of $29 million.

Some market participants think otherwise and noted that inflow in the month of June was largely attributed to routing of local money through foreign destinations by the local companies to minimise their impairment losses incurred during the floor period.

They wanted to push the market as much as they can by the end of June so that the shares value could go up and in return they would have to book the minimum loss that they are bound under the regulations of apex regulator on quarterly basis, an analyst commented.


----------



## Neo

*Pakistan should improve revenue collection from services sector​* 
ISLAMABAD (July 02 2009): India has improved its revenue collection remarkably from service tax which has become an example for countries like Pakistan to introduce such kind of tax on services. The FBR quarterly review issued on Wednesday thoroughly analysed service tax structure in India with viable recommendations to implement the same in Pakistan.

In line with the Indian service tax, Pakistan should endeavour to improve the contribution of indirect taxes from services sector. It means during 2007-08, there was a potential to realise Rs 100 billion but only Rs 66 billion was actually collected. It implies that roughly, there is a further potential of Rs 34 billion in Pakistan, which could be generated additionally.

In India, around 63 percent of service tax collection emanated from 10 services and remaining 40 percent has been spreading on remaining services. Like Pakistan, telephone services contributed the top collection. Surprisingly, while comparing Indian service tax top 10 revenue generating services, only two categories telephone, banking and insurance services have been taxed in Pakistan.

Interestingly, the contribution of telecommunication has been 70 percent of the total collection of services in indirect taxes in Pakistan against only 17 percent in India. Prima facie, this is a case of limited tax base of services as well as enforcement issue. Interestingly, tax compliance by the taxpayers from 2001-02 has been up to the mark in services as tax returns have been regularly filed. Actual issue is the low contribution of service sector in tax revenues.

The tax base of services is extremely narrow. There is an immediate need to augment the scope of services in tax net of FED in VAT mode. The most prolific services in Indian service tax which are out of tax net in Pakistan are suggested to be brought in the fold of FED VAT mode such as business auxiliary service, goods transport agency, insurance auxiliary service, maintenance or repair services, stock broker, consulting engineers and commercial or repair service. With the passage of time, gradual extension of base would be a great source of revenue generation among the service untaxed.

For greater simplicity and distortion free system of service taxation, uniformity of tax rate is essential. The services taxed under indirect taxation are subject to varying rates. In Indian service tax, uniform rate for all the services is applied. A uniform rate of 15 percent would be more reasonable for all services under FED or sales tax.

In order to improve collection and enforcement, separate set up of services tax administration can be helpful. Since services generate inadequate revenues except telecommunication, attention is paid to manufacturing sector on priority basis as bulk of revenues is generated by manufacturing sector. All the services in the net of FED and sales tax may be combined together into a new tax "Service Tax" like India. It would a serious step toward focusing on revenue generation through better enforcement and extension of base of services.

The GST in Pakistan is an appropriate tax for services but there may a uniform rate of goods and services. On the other hand, although base of FED on services is extremely limited but still there is a variation in the FED rates. The uniformity of tax rates between sales tax on goods and services, and FED on services will help in reducing distortions and bring equity. Pakistan can also improve its tax revenues from services by expanding the scope of taxes to the untaxed services.

There is also an option to combine all the services into a service tax in indirect taxes but again there might be a number of constitutional and administrative issues. One thing will be certain that it will be focused appropriately if combined.

Provincial governments have some comparative advantage in administering the sales tax on services. The identification of liable taxpayers and the maintenance of the tax roll are comparative advantages of the province because of its greater familiarity with the local economy. Since the sales tax on services is a provincial revenue source, there should be more incentive to assess and collect the tax than is the case under the present centrally administered system.

Finally, there might be some significant advantage to a co-ordinated collection of the sales tax on services, the professions tax and the urban property tax. A centrally administered system also has some advantages.

Staff is familiar with sales tax because the provincial government would find it difficult to enforce the tax where powerful local interests are involved. In the long run, given the objectives of a fiscal federalism, the best options are either (a to move the administration of provincial taxes to the federal government, on a "readiness" basis, or (b) to have provincial rate setting under a shared sales tax on services, the report added.


----------



## Neo

*$5.984 million foreign portfolio inflow recorded in June​* 
KARACHI (July 02 2009): After witnessing a continuous outflow of foreign portfolio investment from the country's equity market during last 15 months, a fresh inflow of $5.984 million of this mode of investment was seen in the month of June 2009. "The offshore investors' confidence seems to have been revived and they are coming back to invest in the local share market", an analyst said.

According to National Clearing Company of Pakistan Limited (NCCPL) data, a net outflow of $22.271 million was recorded in the month of May 2009 while the cumulative outflow of this mode of investment was seen at $637.681 million in the period from January 1, 2008 to June 30, 2009.

"The fresh inflow of portfolio investment in the local equity market is mainly in line with funds flowing to all emerging markets for last few months", Muhammad Sohail, a leading analyst and CEO of Topline Securities said. Although net buying was only $5.984 million in June, it clearly signalled that funds were slowly moving towards Pakistan, now trading at 50 percent discount to regional markets on price earnings ratio, he added.

However, the unfortunate part was that the amount of funds invested in Pakistan was far lower than regional inflows. A record net inflow was seen in emerging markets in the second quarter of 2009, led by China, India and Brazil. But contrary to historical trend, the money coming to Pakistan was far less this time.

"This is mainly due to foreign investors' bad experience as Pakistan market regulators put a price floor last year for more than 100 days and as a consequence MSCI downgraded Pakistan to Frontier Index", he said. For instance, fund managers' net buying in Indian equity market was $800 million in June and it was more than $5 billion in the last quarter. Compared to this, a nominal net buying of $5.984 million was seen in Pakistan in June and for the quarter ending June 2009 there was net selling of $29 million.


----------



## Neo

*Up to 3.6 million euro aid for IDPs: Germany links Pak-EU FTA with legislative reforms​* 
KARACHI (July 02 2009): Germany, increasing its humanitarian aid for internally displaced persons (IDPs) in Pakistan by one million euro to 3.6 million euro, has said Islamabad would have to change its laws as per WTO rules for signing a free trade agreement (FTA) with European Union.

"Germany stands ready to support Pakistan," said Dr Michael Koch, German Ambassador to Pakistan while addressing a press conference at a local hotel on Wednesday. Also present on the occasion was Dr Christian Brecht, Consul General of Germany in Karachi.

Terming the trade, instead of aid, as more attractive choice for his government for the new democratic government in Islamabad, he said the developing country was facing the challenge of extremism on its north-western border.

Referring to the United Nations estimates, he said due to hostilities between Pakistani troops and Taliban groups over two million people had so far fled their homes in Swat Valley and Fata and only 10 percent of the refugees could be sheltered in official refugee camps.

"The others are living in makeshift camps or with host families," he added. The granted funds, which Koch said would be distributed to German aid organisations, would particularly be used to help those IDPs, who could not be sheltered in refugee camps. In addition to distributing basic necessities and hygiene items, providing medical care for the refugees would be a priority, he added.

Calling the Swat Valley and Federally Administered Tribal Areas (Fata) as hard hit areas, the German envoy told the media that the Federal Foreign Office in recent weeks had already made 2.6 million euro available for humanitarian aid efforts being led by the International Committee of the Red Cross, the UN refugee agency (UNHCR) and German aid organisations.

"The Federal Foreign Office's 2009 humanitarian aid to Pakistan thus totals 3.6 million euro till date," he added. About the possibility of a Pak-EU FTA, the German envoy said the strict rules of GSP-plus (generalised system of preference) and World Trade Organisation (WTO) were the main criteria, to which the laws in Pakistan were not compatible.

"The so-called Free Trade Agreement is to be negotiated between the two... as long as you don't change the rules to make them compatible to that of WTO... this would unfortunately need more time," he added. Koch also clarified that the GSP-plus was making it difficult for his side to consider special concessions for the benefit of Pakistan or any other country of the world.

Asked if Germany was supportive to US drone attacks inside Pakistan, Koch said the deployment of around 4,000 German soldiers in Afghanistan under Nato/Isaf were responsible for the security in Afghanistan only. "We believe on this side of the border it is the Pakistani security forces that are and should be responsible for the security," he said.

The German ambassador also visited Karachi Port to get himself acquainted with an expanding port and is scheduled to visit the Trade Development Authority of Pakistan (TDAP) to explore the tremendous investment potential of the country.

"We encourage the German companies to exploit the great deal of potential in this country," said Koch, whose country is the 9th largest trading partner of Pakistan. Dr Christian Brecht Consul General of Germany said one of the objectives of the envoy's countrywide visit was to make the EU more recognisable to the authorities in Pakistan.


----------



## Neo

*Pakistan and China agree to increase land trade​*
BEIJING (July 02 2009): Pakistan's Ambassador to China Masood Khan and Commissioner of Kashgar Prefecture Akbar Ghafoor have reiterated that land trade could be further increased through facilitation and removal of bottlenecks, a senior diplomat at Pakistan Embassy said here on Wednesday.

Both sides reaffirmed to enhance land trade during a meeting held on the sidelines of the 5th international trade fair at Kashgar, which started on June 28, said the Commercial Counsellor, Dr Naeem Khan. The meeting concluded that enhancement of trade can be achieved through frequent holding of high-level consultations between Xingjian and Northern Areas Administration of Pakistan.

Ambassador, Masood Khan, also met the representatives of Pakistan-China Business and Investment Promotion Council, who apprised him of the progress and activities of the Council in promoting trade between the two countries.

The Ambassador also addressed a reception hosted in honour of all members of Pakistani delegation by leading Pakistani exporters. The five-day Kashgar, Central and South Asia Commodity Fair attracted more than 12,000 businessmen, including about 800 from seven central and south Asian countries such as Tajikistan, Pakistan and Afghanistan, according to organisers. Over 70 exhibitors from Pakistan belonging to different trade areas were taking part in the fair.

Besides, these exhibitors, three delegations were representing Pakistan. They included Northern areas delegation led by its Chief Secretary Babar Yaqoob, NWFP delegation led by Minister Syed Ahmed Hussain Shah and third one led by Pakistan's Ambassador to China Masood Khan including senior diplomats.

The trade delegations from Northern Areas Chamber of Commerce and Rawalpindi Chamber of Commerce and Industry were also attending the exhibition. Food, textiles and clothing, gem and jewellery, machinery and electronic products are among the major goods for trading. The fair is conducive to 'building a good active economic relationship between Kashgar and other parts of China, and central and south Asian countries,' said Huang Sanping, a Kashgar official. Last year, transactions at the fair reached 24.3 billion Yuan ($3.55 billion).


----------



## Neo

*Dairy sector shows huge potential for growth​* 
HYDRERABAD (July 02 2009): Dairy is one of the expanding industrial sectors in Pakistan with currently about 23 units engaged in the production of various dairy products. However, presently almost all the dairy units are working below their capacities. Besides milk, milk powder and butter are also used in different dairy products. Not only as a product, it is also useful to cure various diseases.

There is great potential in Pakistani to produce milk and leather, which is in demand world-wide. Milk, as per requirement, is received from contractors and self-collection centres and also from former form through chiller plant vehicle.

According to the Economic Survey 2008-2009 the total production of milk was about 34.064 million tones in Pakistan. Punjab with a share of about 80 percent leads other provinces in milk production. Out of the total production of 135 million litres of milk per day, about 50 percent is consumed at source in the countryside, while the remaining 60 percent is traded in the urban centers.

Most of the traded milk is marketed un-processed and currently only 4 percent of the traded milk is processed by the dairy industry in Pakistan. The growth of processed milk should increase up to 10 percent as soon as possible. Not only through private channels, multi national companies shouls also be introduced in this.

Even the government should utilise part of the budget to built the government dairy plants. Thorough this unemployment will decrease especially 1200 veterinarian are jobless they will be engaged and with this income will generate for the betterment of the nation.

The shortage of the milk is mostly faced in the summer season; reason is its spoilage 30 percent milk spoil before reaching the consumers and due to shortage fluctuation in rates appears.

In the plant processed liquid milk in the form of pasteurised milk, sterilised milk or ultra heat treated (UHT) milk is the main dairy product in Pakistan, while other products include dry powdered milk, cream, butter, butter oil, yoghurt, cheese and ice cream, etc. If, food quality controlling (FQC) authorities consider to improve more quality of the dairy products there is no doubt we can generate exporting income through UHT treated milk and milk products.


----------



## Neo

*Tenth Five-Year Plan​*
EDITORIAL (July 01 2009): Dr Mohammad Ehsan-ul-Haq Tasneem, Member, Planning Commission for Food and Agriculture, has said that the key imbalances in all sectors of the economy need to be rectified through an appropriate emphasis on agriculture, agro-business, industrial competitiveness, and on new initiatives for technology, energy and infrastructure in the 10th Five-Year-Plan (2010-15).

The agriculture and storage infrastructure would be improved at a total cost of Rs 38 billion. Further, the private sector would be the primary engine of economic growth and agricultural development. This would be achieved through vertical integration of high-value agriculture and livestock products.

Dr Ehsan also talked about the acute water shortage in the country, and disclosed that an integrated approach would be adopted, which would be guided by principles of equity, efficiency, participatory decision-making, sustainability, and accountability.

Public-Private Partnership needs to be vigorously pursued with respect to agriculture marketing and storage-and-supply chain infrastructure to enhance the effectiveness of public sector programmes. We hope the implementation of all these ambitious agriculture and agro-business projects would be achieved, with dedication, in a time-bound and cost-effective framework.

Dr Ehsan has rightly said that the emerging food crisis, in the wake of global food insecurity, has highlighted the need to revitalise Pakistan's agriculture sector to ensure sustainable food security in the country. The plan unveiled by the Member, Planning Commission, is comprehensive in its sweep and intent, and needs to be implemented in letter and in spirit.

Being an agrarian economy, Pakistan needs to put maximum emphasis on agriculture and agro-business, with its huge value-added potential. While over 60 percent of agriculture value-added is accounted for by such food crops as wheat, rice, maize, millet and sorghum, the share of major crops has remained substantially unchanged, due, mainly, to the paucity of inputs and research.

The share of food crops, particularly of wheat and rice, has increased over the last decade, though the share of cotton and sugarcane has fallen, which is reflective more of the movement of relative prices, than of production levels. Secondly, agriculture's share in the country's GDP has fallen by more than half, ie from about 53 percent in 1950, to approximately to 21 percent at present, due largely to the shifting policy thrust of successive governments.

However, despite its constraints, the agriculture sector has remained the single largest sector of the economy, and a credible guarantor of poverty alleviation. Infrastructure constraints in almost all sectors of the economy have warped the country's economic growth potential.

And the country's water and power sector has failed to deliver the required services, mainly because of infrastructure constraints. A serious lack of required storage capacity, whether for water or agriculture produce, has been mainly responsible for our failure in attaining sustainability, not only in agriculture, but also in the water and power sectors.

According to one estimate, some 30-maf of water, worth about $60 billion, flows down into the sea each year, unutilised which has not only harmed the country's agriculture sector; but it has also become a major cause of our failure in harnessing the country's huge hydropower potential. We have received huge funding from international lending institutions over the decades, though its targeted and timely utilisation has left much to be desired.

As Dr Ehsan has said, the challenge confronting the country today is to make agricultural growth pro-poor and equitable, for which a well-developed and efficient non-farm sector (agro-based, rural enterprises) is essential. Agriculture is the best hope for the revival of Pakistan's economy.

Successive governments in the country have, unfortunately, put greater stress on the formulation of policies and projects, than on their timely and cost-effective implementation. This has been true as much in agriculture, as in other sectors of the economy. There is an urgent need to activate the implementation arm of the government to achieve goal-oriented results. It is to be hoped that the implementation of the 10th Five-Year Plan, with its ambitious goals in agriculture and agro-business, will help revitalise the economy.


----------



## 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.


----------



## Neo

*Foreign company plans to invest $3 billion in Reko Diq copper-gold mine​*
KARACHI (July 01 2009): A foreign joint-venture company plans to invest up to $3 billion in Pakistan in a copper and gold mine, the venture's chief executive said on Tuesday. Tethyan Copper Co Ltd, a joint venture between Canada's Barrick Gold and Chile's Antofagasta Plc, one of the world's largest copper miners, has been granted an exploration license for the Reko Diq site in Balochistan.

The site's ore reserves, a mixture of minerals, are estimated at 4 billion tonnes, of which 0.5 percent is expected to be copper with 0.29 gram of gold per tonne of ore, Tethyan Chief Executive Cassie Boggs told Reuters in an interview.

"We think the investment is probably going to be between $2.5 and $3 billion," Boggs said by telephone. Tethyan is working on a feasibility study which is expected to be finished by early next year. The aim of the project is to exploit both copper and gold deposits, Boggs said.

Tethyan has a 75 percent interest while the government of Balochistan holds the remaining 25 percent. The project is expected to create up to 9,000 jobs in the construction phase, which will last for about three years, and then employ up to 3,000 people once the mine is operational. "Initially, we will need to probably bring in people from the outside with certain mining expertise," said Boggs. "But certainly, the plan is to train and develop the local workforce."


----------



## Neo

*'US bill to provide easy market access to Pakistani products'​* 
MULTAN (July 01 2009): United States is introducing a bill to provide easy access for Pakistani products into US markets, in September 2009, to facilitate local exporters and manufacturers, said Bryne-D Hunt, a principal officer of the American Consulate, while exchanging views with a former Punjab Minister and ex-President of MCCI Khawaja Muhammad Jalal-uddin Roomi, here Tuesday.

This function was also attended by officers of the District administration, including Commissioner Multan Syed Muhammad Ali Gardezi, DCO Khurram Ali Agha. Bryne said that the US administration had asked Pakistan to develop a roadmap based on workable proposals for enhancing bilateral economic relations.

He said that the United States would help Pakistan make these initiatives operational for enhancing trade and economic relations, for the benefit of the people of both countries. In this regard, Pakistan had been advised to ensure frequent visits of business leaders, so that the concerns of local investors were addressed and foreign direct investment from US was enhanced, he added.

He further informed that US authorities had renewed their commitment regarding the establishment of ROZs, and they were of the view that they were perusing the related legislation with US Congressmen and US Senators and the process would be completed in due time.

He further said that the United States was already financially assisting Pakistan for the rehabilitation of IDPs and the development of Southern Punjab, but the new willingness of USA and the G-8 ,which included United States, Japan, Britain, Russia, Germany, France, Italy, Spain, would supplement Pakistan's efforts for the development of Southern Punjab in the long run, providing basic facilities like roads, education, health and employment.

Khawaja Muhammad Jalaluddin Roomi said that there was no capital flight from Pakistan, foreign direct investment, remittances, revenues, foreign exchange reserves, stock market capitalisation were increasing and the country was enjoying the full confidence of the IFI's and foreign investors.

Current political events, in Pakistan, had not impacted Pakistan's economy as major economic indicators had witnessed positive growth, the economic fundamentals were strong, and the country's economy was progressing well to achieve sustained growth in the years to come.

Pakistan had also requested the US authorities to review its decision on the Travel Advisory on Pakistan and it was informed that this had been a major obstacle in enhancing trade and investment relations between the two countries. Roomi emphasised on the enhancement of Pak-US economic relations and the significant development of US contributions in the development of Pakistan.

If India was given access to Afghanistan through Wagah, their goods would enter Pakistani markets through smuggling by this TTA. Besides this, India would get easy access to the Central Asian States, through Afghanistan, whereas Pakistan was presently denied this facility through the TTA with Afghanistan, he added.


----------



## Neo

*Zardari seeks world help to rebuild economic infrastructure​*
ISLAMABAD (July 01 2009): President Asif Ali Zardari on Tuesday said that the international community needs to recognise the economic problems of Pakistan created by the war against militancy and should step forward to addressing them in an effective manner in order to pursue the fight against militancy to its logical conclusion. He was talking to, Senior Director for International Economics of the US National Security Council, David Lipton, who called on him at the Presidency.

David Lipton was accompanied by US ambassador Anne W Patterson and Robert Dohner, Dy Asstt Secy for Asia of the Treasury Department, Shaukat Tarin, Advisor to PM for Finance, Secretary General to the President Salman Faruqui, Foreign Secretary Salman Bashir, Secretary Finance Salman Siddique, Secretary Commerce Suleman Ghani were also present in the meeting.

President Zardari said Pakistan had to rebuild its economic infrastructure damaged during the war, revive the closed industrial units, rehabilitate the over two million internally displaced persons, strengthen its civilian law enforcing agencies and undertake a massive programme for increasing literacy to help combat militancy.

The President said that the revival of closed industrial units also needed new power plants and hydel power projects. He said rental power plants would come up on line by the end of this year. In addition Pakistan was trying to build about a dozen small hydel power plants to overcome power shortage. The country also needed access to international markets for its product so as to generate jobs in the country, the President said.

Reactions: Like Like:
1


----------



## 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.

Reactions: Like Like:
1


----------



## Neo

*Pakistan's forex reserves rise to $11.84 bln​*Reuters - Friday, July 3

KARACHI, July 2 - Pakistan's foreign exchange reserves rose by $70 million to $11.84 billion in the week that ended on June 27, compared with $11.77 billion the previous week, a central bank spokesman said on Thursday.

The State Bank of Pakistan's reserves edged up to $8.55 billion from $8.45 billion a week earlier. Reserves held by commercial banks fell to $3.29 billion from the previous week's $3.32 billion, the spokesman said.

Foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November last year, largely because of a soaring import bill.

Pakistan agreed in November to an International Monetary Fund emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves.

The central bank said on Wednesday it had received $500 million from the Asian Development Bank for a loan announced last week, receipt of which would be booked for the 2008/09 financial year that ended on Tuesday. [ID:nSIN478705]

The loan amount will be reflected in data on foreign exchange reserves to be released on July 9.

Reactions: Like Like:
1


----------



## Neo

*Pakistan Gets $500 Million Loan From Asian Development Bank Central Bank​*
KARACHI -(Dow Jones)- Pakistan Thursday received a $500 million loan from the Asian Development Bank to help with macroeconomic stability and fund a targeted safety net for the poor, a central bank spokesman said.

"The central bank has received $500 million from the Asian Development Bank, boosting foreign exchange reserves," said Syed Wasimuddin, spokesman for the State Bank of Pakistan.

A loan of $150 million from the ADB's Special Fund will target the Benazir Income Support Program, a cash transfer program focusing on poor women.

The remaining $350 million will help Pakistan move to more market-based pricing of wheat and electricity, remove subsidy distortions and improve a targeted social safety net, he added.

The amount will be added in the foreign exchange reserves data by next week.


----------



## Neo

*Pak, China agree on services for exports under FTA ​* 
Friday, July 03, 2009

ISLAMABAD: Pakistan and China has agreed to include eleven sectors from services under the Free Trade Agreement (FTA) to evolve a transparent and predictable service regime for attracting FDI from China, reveals an official who concludes recently PakistanóChina talks on services on Thursday. 

Both the countries agreed to include business, communication, construction & related engineering, distribution, education, environment, finance, health & related social, tourism & travel, recreational & cultural sporting and transport services, he added. 

Pakistan exported services of $4 billion against the Chinese imports in services of $10 billion with deficit. The services consist of the government services, transportation, business services, travel, communication, computer & information, finance, construction, royalties & licence fees, insurance and personal, cultural and recreational services. 

The diplomatic notes of this recently concluded talk on services under the FTA would be exchanged on July 28-29 and after 30 days, the free trade commission will formally make the agreement operational, an official familiar with the talks told The News. 

The agreement also does not apply for the sector, which encompasses air traffic rights, services supplied by governments, procurement of services by government agencies, subsidies or grants can be provided only to domestic services supplier, general exemption for security related services and citizenship or employment on a permanent basis, the agreement stated. China under this agreement will also make investments as joint ventures and it has also provided 100pc equity in sectors that include computers & related services, research & development services, distribution, retail/wholesale and commission agent services, environmental services, tourism & related services and maintenance & repair of motor vehicles, it said. 

The merchandise exports of Pakistan would become competitive both in China and globally through quality services, transfer of technology, capacity enhancement and employment creation, the agreement hoped. It further expected that the agreement will attract Chinese investment in infrastructure, energy and waterways (dams and bridges), human resource development and technical training and research & development. 

Overall the countrys exports of services in 2003 were $2.96 billion; $2.74 billion in 2004; $3.67 billion in 2005; $3.5 billion in 2006 and $3.75 billion in 2007.

Reactions: Like Like:
1


----------



## Neo

* Cotton output may increase in Pak, US, India: report ​* 
Friday, July 03, 2009

LAHORE: Cotton production is expected to increase in the three largest producing countries after China that is India, United States and Pakistan.

However, significant production declines are expected in Turkey, Brazil and the CFA zone.

This was stated in the press release of International Cotton Advisory Committee that also forecast cotton mill use outside of China higher by 1 per cent at 14.2 million tons in 2009/10. Both cotton imports and exports from World-less-China are expected to recover slightly in 2009/10, to 5.1 million tons and 6.5 million tons, respectively.

Due to a faster increase in supply than in use, cotton stocks outside of China are forecast to continue to grow by 4 per cent to a record of 9.5 million tons by the end of July 2010, accounting for two-thirds of cotton mill use in that region.

In China, cotton production is expected to decline by 7 per cent to 7.5 million tons in 2009/10. Cotton mill use is expected to increase by 3 per cent to 9.3 million tons, slightly recovering from a sharp drop in 2008/09. Chinese imports are expected to increase only slightly to 1.5 million tons in 2009/10. Chinese stocks are expected to decline by 10 per cent, to 3.4 million tons.

Based on a price forecast of 60 US cents/lb for 2008/09 and an expected increase in the stocks-to-mill use ratio in the world-less-China (Mainland) in 2009/10, Cotlook A Index of 56 US cents/lb in 2009/10. This would represent a 7 per cent decline from the projected 2008/09 average.

Reactions: Like Like:
1


----------



## Neo

*KSE jumps 228 points on local foreign institutional buying ​* 
Friday, July 03, 2009

KARACHI: The significant foreign and local institutional buying placed the Karachi bourse very close to 7,500 points level on Thursday. Just before the closure of the day session, market once briefly breached through this crucial level as well in forward gear.

The KSE 100-share Index posted a significant increase of 227.62 points or 3.13 per cent and ended at 7,498.34 points - just 1.57 points away from 7,500 points level.

Heavily dominated by the heavy weighed stocks, the 30-Index soared by 288.62 points or 3.74 per cent and settled at 8,000.53 points.

Analysts said that the release of funds for Pakistan from international financial institutions; reasonable cut in rate of return on National Saving Schemes; expectations about reduction in central banks lending rates sometime next week; hope of having leverage product for ready and future markets in near future; increase in cement exports; and hike in furnace oil price altogether invited the liquidated participants to accumulated their favourite stocks ahead of corporate results announcement season.

Credit for inflating the indices this much goes to the heavy weighted selective stocks, which exhibited excellent performance under the lead of oil giant Oil & Gas Development Company. This scrip (OGDC) alone added 57 points in the leading benchmark 100-Index.

The other notables are included National Bank, MCB Bank, Habib Bank, Fauji Fertilizer and Pak Petroleum. These stocks cumulatively included 71.5 points in the 100-Index, while each of them shared in range of 11 to 18 points.

United Bank, NIB Bank, Allied Bank, Engro Chemicals, Pak Oilfields, Pakistan State Oil and Kot Addu Power Company also gave considerable gains in the index.

The leading oil & gas exploration & production, bank, fertilizer, cement and securities companies sectors remained in limelight. Majority of them enhanced between four to five per cent in their value terms.

The buying euphoria helped market generating 196 million shares on ready board, which is over 87 per cent higher than 104.6 million shares changed hands yesterday. No deal was seen on future counter that remains virtually suspended. 

The overall market capitalisation rose by Rs63 billion to stands at Rs2,213 billion. This increase is included an inflow of Rs199 million ($2.5 million) by the foreign portfolio investors.

M Sohail at Topline Securities said the release of funds from ADB and expectations that funds will flow from national savings to stocks generated buying euphoria at local bourse mainly led by OGDC. Good institutional buying seen with news of buying by foreigners in selected stocks. Stocks, whose board meeting will be held soon for results, remained under limelight, he added.

Ahsan Mehanti at Shahzad Chamida Securities said that intense buying continued as expectation loomed over record payouts by oil and fertilizer scrips on year-end result announcements. Investors celebrated reduction in NSS rates ahead of result announcement session, he added.

Rise in furnace oil prices was taken positive for oil marketing companies, while record cement exports and expectation of reduction in discount rates in next weeks monetary policy announcement played catalyst role for positive activity, he further said.

Hasnain Asghar Ali at Aziz Fidahusein said relaxation in Capital Value Tax (CVT) has certainly reduced the cost on trading, which allowed a decent follow-up support.

While the roar of introduction of modified leverage products (details known to privileged) to cater both ready-board and future trades allowed the seasoned participants to accumulate the main board liquid stocks, which are supposed to be eligible for leveraging. Smooth law & order situation will allow the momentum to continue till the development on leverage is known to all and finally introduced, he added.

Out of total 296 actives, 196 stocks advanced, 84 declined, the value of remaining 16 stocks closed unchanged.

Highest volumes were witnessed in DG Khan Cement at 23.9 million closing at Rs30.55 with a gain of five paisa, followed by Pakistan Telecommunication Company at 14.6 million closing at Rs17.87 with a gain of 23 paisa, Oil & Gas Development Company at 13.6 million closing at Rs83.81 with a gain of Rs3.53, JS Company at 12 million closing at Rs24.51 with a gain of Rs1.11, and Lucky Cement at 11.7 million closing at Rs61.54 with a gain of Rs2.39.

Reactions: Like Like:
1


----------



## Neo

*Construction of first palm oil mill in Pakistan begins ​* 
Friday, July 03, 2009

THATTA: Federal Minister for Food and Agriculture Nazar Mohammad Gondal on Thursday performed the ground breaking and foundation stone laying ceremony of the first palm oil mill in Pakistan.

The palm oil mill will be constructed at a cost of Rs59.743 million on an area of 300 acres by the Pakistan Oil Development Board near Ghulamullah town, some 20km from here.

Addressing the occasion, the minister said that Shaheed Mohtarma Benazir Bhutto had taken keen interest in the cultivation of oil seeds and production of edible oil in Pakistan.

It was the government of Shaheed Mohtarma Benazir Bhutto that had imported palm oil seedlings from Malaysia in 1996 and now President Asif Ali Zardari has taken up this project once again, he said, adding that the present PPP government was striving hard to serve the masses and fulfill the mission of Shaheed Zulfikar Ali Bhutto and his daughter.

A sum of Rs2 billion is being spent on the import of edible oil every year, Gondal said adding that after the commissioning of this mill, large amounts of foreign exchange will be saved.

He said that that the land of Thatta and Badin district, especially coastal areas, are extremely suitable for the plantation and production of palm trees.

He said that each tree will give crops up to 25 years and the growers can earn Rs56,000 per acre from this crop each year. He noted that with the progress and prosperity of growers, the entire country will reap the benefits.

Reactions: Like Like:
1


----------



## Neo

*Tax collection target may be missed, final figures by weekend​*
ISLAMABAD: Federal Board of Revenue is far behind thrice-revised tax collection target of Rs 1.179 trillion for the last fiscal year 2008-09 ended on June 30, 2009. 

Federal Board of revenue (FBR) has reported on Thursday that it has collected over Rs 1150 billion revenue for the financial year 2008-9 so far. 

According to an official statement issued Thursday FBR authorities have clarified that a substantial amount of the revenues collected for the month of June 2009 is still in the pipeline and the final figures are likely to be settled by this weekend. Nevertheless, the provisional figures of total revenues worked out so far are over Rs 1150 billion as against Rs 1007 billion collected during the last financial year. The present provisional figures thus show an increase of over 14 per cent vis-à-vis the last years collection. However, the final figures are expected to be on the higher side. 

It is worth mentioning that in the budget 2008-09, the government had assigned FBR tax collection target of Rs 1.250 trillion, however, according to the understanding reached with International Monetary Fund authorities the tax collection target was revised to Rs 1.360 trillion. After realising the mistake, fund authorities and economic managers of the country revised the target to Rs 1.179 trillion for 2008-09. 

The expected revenue shortfall along with a delay in release of $1 billion by the US for military services would make it an arduous task to keep the fiscal deficit to 4.3 percent of GDP.

The FBR has collected Rs 989.09 billion during first eleven months of the current fiscal against Rs 856.203 billion in the same period last fiscal, reflecting an increase of 15.5 percent.

Besides taxation measures of Rs 77 billion taken in budget 2008-09, the revenue collection target for 2008-2009 also included administrative measures worth Rs 15 billion including Rs 5 billion each for customs duty, direct taxes and sales tax.

Break-up of the tax collection revealed that direct taxes collection stood at Rs 361.582 billion during July-May (2008-2009) against Rs 312.762 billion in the corresponding period last fiscal, reflecting an increase of 15.6 percent. Indirect taxes collection stood at Rs 627.515 billion during this period against Rs 543.437 billion during corresponding period last fiscal, reflecting an increase of 15.5 percent. Sales tax collection was Rs 398.82 billion during July-May 2008-09) against Rs 333.095 billion in the same period last fiscal, depicting an increase of 19.7 percent.

The FBR also missed the first half-year revenue target of Rs 580 billion by a wide margin of Rs 36.7 billion.

This shortfall in revenue is owing to slowing down in the economy largely because of sluggish growth in the large-scale manufacturing industries.

The manufacturing and services sectors are the biggest contributors in revenue collection, which entered negative growth owing to global recession coupled with high cost of doing business and political instability in the country.

The decline in revenue is also because of slowing down in the imports bill of oil sector this year due to falling oil prices in the international market. The government raised more than Rs154 billion revenue collection alone from the oil sector last year, which is 23 per cent of the total indirect taxes collection.

Other potential sectors, which could contribute to revenue collection, were also facing sluggish growth, such as the telecom, wholesale and retail sectors etc. while two sectors agriculture and stock market  were exempted from taxes.

Reactions: Like Like:
1


----------



## Neo

*Cost of war on terror estimated at $10bn in 2008-09​*
ISLAMABAD: The direct and indirect costs of the war against terror borne by Pakistan in fiscal year 2008-09 are estimated at $10 billion, the Planning Commissions Panel of Economists Chairman Hafiz Pasha said on Thursday. Talking to reporters at the launching ceremony of the Human Development in South Asia Report 2008 at the National Library, Pasha said the army operation in Swat was likely to cost the national exchequer an additional Rs 100 billion. The economy of Swat was expected to bear losses estimated at Rs 30 billion because of the war, he said. He said due to the war, Pakistans economy was facing were multidimensional losses as investment and exports were declining and economic activity was leading to reduced revenue. According to official sources, the loss of life and the economic cost had reached an unbearable level.

Reactions: Like Like:
1


----------



## Neo

*Pakistan a gateway of trade and commerce for Central Asia​*
ISLAMABAD (July 03 2009): Pakistan really can be a gateway of the Central Asia for trade and commerce and that would be a tremendous source of revenue stated Ambassador, Extraordinary and Plenipotentiary of Tajikistan, Zubaydov Zubaydullo Najotovich during a call on with the Federal Minister for Industries and Production, Mian Manzoor Ahmad Wattoo here on Thursday.

The ambassador said that both the countries have signed about twenty agreements, protocols and memorandums of understanding (MoU's) to extend co-operation in energy, communications, insurance, investments and industry, air transport, banking and financial, agricultural and food industry, transport and constructions of roads, science and technology, education, health, tourism, culture on the basis of mutual equality and to increase the current level of trade.

Tajik ambassador said that Tajikistan is in a dire need of access to the world through Pakistani ports like Gwadar, and Pakistan is also looking to import Tajik power to its northern areas, as Tajikistan has the huge Hydropower potentials and cheapest electricity in the world.-PR

Reactions: Like Like:
1


----------



## Neo

*World Bank to give $134.68 million for various projects​*
ISLAMABAD (July 04 2009): The Government of Pakistan here on Friday signed two agreements with the World Bank amounting to US $134.68 million for financing projects in different sectors, namely: Third Partnership for Polio Eradication Project (US $74.68 million) & Social Safety Nets Technical Assistance Project (US $60 million) in the Economic Affairs Division (EAD).

The agreements were signed by Farrukh Qayyum, Secretary, EAD on behalf of the Government of Pakistan and Yusupha B Crookes, Country Director on behalf of the World Bank. The overall objectives of these projects are to help the Government of Pakistan in enhancing the efficiency and productivity of sectors like Health & Social Welfare.

The terms and conditions for the Education Sector Credits will remain as per the World Bank standard ie maturity period of the credit is 35 years having a grace period of 10 years. The Government of Pakistan has to pay service charges @ 0.75 percent and commitment charges @ 0.5 percent per annum.

THE PROJECTS DETAILS ARE: The Third Partnership for Polio Eradication Project (US $74.68 million) and the objective of the project is to assist the Recipient in its efforts under its Polio Eradication Initiative (PEI) to eradicate polio from its territory.

The project consists of: Procurement, supply and use of OPV for the purpose of immunising children under five (5) years of age under the Supplemental Immunisation Activities (SIAs). Social Safety Nets Technical Assistance Project (US $60 million): The objective of the project is to enhance the operation and management of a nation-wide effective and transparent safety net system for the poor within the territory of the Recipient.

THE PROJECT CONSISTS OF THE FOLLOWING PARTS:

Part 1: Establishment a National Targeting System (US $34.6 million).

Part 2: Strengthening Safety Net Program Operations (US $12.9 million).

Part 3: Enhancing the Safety Net Program Management, Accountability and Evaluation (US $10.7 million).

Part 4: Developing the Social protection Policy and Strategy Monitoring (US $1.7 million).

Reactions: Like Like:
1


----------



## Neo

* WB commits $1.7bn to cope with crisis impact​*Saturday, July 04, 2009

ISLAMABAD: The World Bank committed a record amount of $1.7 billion in fiscal year 2009 (FY09) to help Pakistan cope with the impact of global economic crisis, the bank said on Friday.

This represents an increase of $1.064 billion over FY08, said the WB in a statement issued here.

The banks financial support and technical assistance to Pakistan focused on helping the country to maintain economic stability, steer the economy back onto a higher growth path, help the government put in place the systems, realise its vision and protect the poor from economic shocks.

Pakistan has faced daunting challenges over the past year, including a domestic macroeconomic crisis, a global recession, political turmoil and serious security challenges, said Yusupha Crookes, World Bank Country Director for Pakistan.

The tripling of our support during a time of need demonstrates our commitment to promote growth and stability in Pakistan. The focus of our assistance has been on ensuring the countrys poorest and most vulnerable citizens are shielded from the major adverse impact of these external shocks.

Pakistan should also not lose the momentum in seeking to build the capability of its citizens especially the poor and our support puts considerable emphasis on supporting the government to continue its efforts in this regard.

During this time, the Pakistan Poverty Alleviation Fund (PPAF) has facilitated the formation of 80,000 community organisations and provided 1.9 million micro-credit loans and 16,000 community infrastructure schemes.

The bank also continued to invest in education in Punjab and Sindh.

In FY09, the bank committed a total of $650 million to support the provincial governments education reform programmes which aim to increase school participation and progress, reduce gender and rural-urban disparities and improve quality and education sector governance.

In addition to its lending and technical support, the bank, together with the government of Japan, convened the international community in Tokyo for a donors conference in April to mobilise additional resources for Pakistan.

Donors rallied to support Pakistans macroeconomic recovery with $5 billion in funding designed to meet its immediate needs and protect expenditures on safety net and human development programmes. Globally, the WB Group committed $58.8 billion in fiscal year 2009, up 54 per cent from fiscal year 2008.


----------



## Neo

*Pakistan sells 15,000T corn as Indian supplies dry up​*Saturday, July 04, 2009

SINGAPORE: Pakistan sold around 15,000 tons of corn this week mainly to Malaysia as supplies from India dried up, while Asian wheat importers bought 20,000

tons of Black Sea wheat on competitive prices and tight Australia supplies.

Pakistan sold corn cargoes in containers at around $190 a ton including cost and freight for prompt shipment and more deals are likely as Indias export season is nearing an end, regional traders said. Pakistani exporters are in the market, negotiating deals, said a Singapore-based grains trader. I think they will be active, but we dont expect big deals as the market is very volatile.

Traders said Asian grain importers were buying hand-to-mouth, importing smaller quantities in containers on weakening global prices. Not many want to take a bulk delivery when the market is falling so much, said a trader who sells wheat and corn cargoes in Asia.


----------



## Neo

*Kenya offers flower growing tech to Pakistan​*
ISLAMABAD: Kenya has offered the transfer of flower growing technology to Pakistan to enable the country to export flowers and earn precious foreign exchange.

Ambassador of Kenya, Mishi Masika Mwatsashu called on the Federal Minister for Commerce, Makhdoom Amin Fahim on Friday. The Minister expressed that Kenya and Pakistan are trading partners and both should see maximum opportunities to explore potential trade. The ambassador appreciated the efforts being made by government of Pakistan to organize exhibitions and trade fairs in Kenya. Pakistan imports mainly tea from Kenya , constituting 55 percent of total consumption of tea in Pakistan , and exports manly rice there. It was proposed that Pakistan could learn from Kenyan expertise of producing flowers, which is a big source of income for them. Pakistan has a fertile terrain, suitable for producing flowers and the Kenyan experience in this field would help Pakistan to a larger extent. Once the technology of growing flowers is transferred, Pakistan can earn a handsome amount of foreign reserves through export of flowers. The Ambassador showed interest in importing pharmaceuticals and surgical instruments from Pakistan. The Ambassador of Iran, Masha Allah Shakeri also called on Makhdoom Amin Fahim. The Ambassador stated that after kinnow, Pakistani mango is also gaining ground in the Iranian market.


----------



## Neo

*Cement exports growing despite global recession​*
KARACHI: Despite global economic slow down around the world the local cement exports continued to exhibit growing trend, as the cement exports to Afghanistan jumped to 23 percent month-on-month in June 2009, as compared with April.

According to the latest cement exports break down released by the All Pakistan Cement Manufacturers Association (APCMA) for the month of June 2009, exports to Afghanistan were up by 23 percent M-o-M and 54 percent year-on-year (Y-o-Y) which can be put down to improving law and order situation in Afghanistans border adjoining areas of NWFP region.

However, the exports to India dropped 14 percent M-o-M and 28 percent Y-o-Y, to the Middle East and African region remained flat on a M-o-M basis though were still up 34 percent Y-o-Y, as planned capacities are yet to come online in the Middle East.

Furthermore, for the full year FY09, exports to Afghanistan and to the Middle East and African countries rose by 15 percent and 81 percent Y-o-Y respectively. However, due to political tensions with India during the year, exports to the country fell by 15 percent.

The export trend to Afghanistan may only sustain if military operation in the Afghanistans border adjoining areas and NWFP region is completed successfully, an analyst said.

Furthermore, anticipated capacity expansions in the Middle East (likely to come online by the end of FY10) and prolonged global recessionary woes remain a major downside risk to countrys exports.


----------



## Neo

*Cotton production to rise 3% to 16m tonnes in 2009-10​*
KARACHI: Cotton production is expected to increase by 3 percent to 16 million tonnes in 2009-10. Production is expected to increase in the three largest cotton-producing countries after China, India, the United States and Pakistan.

A senior trader at Karachi Cotton Association, Ghulam Rabbani said significant decline in production is expected in Turkey, Brazil and the CFA zone.

He said that the use of cotton mill in the world except China is forecast 1 percent higher at 14.2 million tonnes in 2009-10.

Both cotton imports and exports in the world except China are expected to recover slightly in 2009-10, to 5.1 million tonnes and 6.5 million tonnes respectively, he added.

Due to a faster increase in supply than in use, cotton stocks outside of China are forecast to continue to grow by 4 percent to a record of 9.5 million tonnes by the end of July 2010, accounting for two-thirds of cotton mill use in that region.

He said, Cotton futures are currently trading higher due to the decline in the US dollar and the influence of Chicago soybeans, which are much stronger.

Technical buying is also accompanied by the rumours of Chinas additional import quota. Cotton open interest has reached a 3-year low and the market has successfully tested last weeks reversal upwards.

According to Beijing Cotton Outlook, the volume of cotton stocked by traders has decreased sharply (Cotlooks sources suggest perhaps to 800,000 tonnes in total, a portion of which remains in Xinjiang) and some are said to have sold out.

As noted previously, some of them have been purchasing from the state reserves on behalf of mills. Expectations persist in unofficial circles that additional import quota will soon be forthcoming and some traders fear that the result could be to depress prices, which might make cotton bought at auction look expensive.


----------



## Neo

*Pakistan gets WB funds for two projects​*
ISLAMABAD: The government signed two agreements with the World Bank amounting to $134.68 million for financing two projects on Friday.

Under the agreements, the World Bank would provide $74.68 million for the Third Partnership for Polio Eradication Project and $60 million for Social Safety Nets Technical Assistance Project under the Economic Affairs Division (EAD). The objective of these projects is to help Pakistan enhance the efficiency and productivity of sectors such as healthcare and social welfare. The terms and conditions for the education sector credits will remain as per the World Bank standard, i.e., maturity period is 35 years and a grace period of 10 years. Pakistan has to pay 0.75 percent service charges and 5 percent commitment charges per year.

The agreements were signed by EAD Secretary Farrakh Qayyum and WB Country Director Yusupha B Crookes. The Third Partnership for Polio Eradication Project aims at assisting the recipients in their efforts under the Polio Eradication Initiative (PEI).


----------



## Neo

*Power company to be set up in Northern Areas​* 
ISLAMABAD (July 04 2009): The government is reportedly set to remove all legal hitches in the establishment of an electricity entity in Northern Areas, which would be referred as 'Northern Areas Electricity Development Company' (NAEDC), with the objective of facilitating private investment in hydropower projects, sources told Business Recorder.

This decision was taken in a meeting of the Economic Co-ordination Committee (ECC) of the Cabinet on a proposal submitted by the Ministry of Kashmir Affairs and Northern Areas (Kana), by Minister Qamar Zaman Kaira. The background of this decision was a controversial Letter of Interest (LoI) issued by the Alternative Energy Development Board (AEDB) to Tassaq Energy, owned by (retired) Major General Sikandar Hayat Khan who showed intention to establish an independent power producer (IPP) project of 16-20 MW in Northern Areas on Gilgit river.

On this, Prime Minister Secretariat directed Kana to convene a meeting of all stakeholders and resolve the following issues: (i) who will be the client? Wapda, Finance Ministry or the government of Northern Areas? (ii) who will be empowered to set the tariff and give the IPP the licence? Nepra or any other agency? (iii) which agency will pay return on investment to the IPP?

These issues were also raised by the Planning Commission. Sources said that Kana Ministry convened a meeting of all stakeholders wherein it transpired that keeping in view the limited resources, capacity and mandate of Northern Areas Electricity Department and the potential of power generation in the Northern Areas through IPPs, establishment of regional grid, extension of national grid in Northern Areas, establishment of NAEDC, purchase of electricity from IPP and return on investment are the major issues that need to be tackled before an IPP can be established.



A SUMMARY WAS SUBMITTED TO PRIME MINISTER TO SEEK APPROVAL TO INITIATE FORMAL PROCEEDINGS ON THE FOLLOWING LINES:

i) Initiate steps for the establishment of NAEDC.

ii) Look into the legal aspects of extending the jurisdiction of Nepra to Northern Areas.

(iii) Co-ordinate with Planning Commission, Finance Ministry and Water and Power Ministry to plan extension of the national grid and the establishment of regional grid in Northern Areas.

Sources said that the Prime Minister endorsed the recommendations of Kana Ministry and directed that the matter should be placed before the ECC. According to sources, the ECC was informed that in January 2008, AEDB had issued LoI for establishing an IPP on Gilgit River, but resolution of a few legal and administrative issues was required so that the project should progress.

Sources said that issuance of LoI by the AEDB became contentious when some ECC members observed that the Board had no jurisdiction to issue LoI for a hydropower project. It was also pointed out that other major projects in Northern Areas would make the area a surplus producer of electricity. In any case, establishment of regional grind and generation/marketing company was desirable and should be progressed alongside the construction of dams/power generation facilities.


----------



## Neo

*Cotton output may exceed target by 9.4 percent​* 
ISLAMABAD (July 04 2009): Cotton production may exceed the target set for 2009-10 fiscal year (13.36 million bales) by about 9.4 percent to 14.6 million bales following 40 percent increased sowing in Sindh and usage of BT seed for the current financial year.

According to the well placed sources in the Ministry of Food and Agriculture, the production of cotton may increase by 1.24 million bales more than the target of 13.36 million bales set for 2009-10, although the usage of BT seed is not permitted in the country.

The sources revealed that as the government had banned the sowing of rice in the Sindh as area under cotton had been increased by 40 percent. Similarly, an increase of 20 percent had been recorded in cotton sowing area of Punjab Province, which would be 88 million acres, they said.

They revealed that in the absence of certified seed and government's failure to introduce BT cotton last year, Pakistan's cotton production for 2008- 09 had witnessed a shortfall of 2.8 million cotton bales. They said that lack of expertise in fighting cotton virus and heavy rainfall, around 20 percent crop in Punjab and interior Sindh had been affected.

The sources further said that against the set target of 11 million bales, Punjab had produced seven million bales, witnessing a decrease of four million bales, while Sindh fall short of its set target by 0.5 million bales. Due to failure in the achievement of target, cotton worth Rs 25 billion was imported last year to meet the above gap, spending a lot of foreign exchange. If this year the set target could be achieved, foreign exchange worth Rs 30 billion could be saved.

The sources said that cotton production remained 2.7 million bales below the government's target of 14.1 million bales during the outgoing fiscal on account of non-supply of better quality seed, short supply of quality inputs and insufficient water supply. They said that the Pakistan Central Cotton Committee, keeping in view the situation, had revised the target to the level of 12.5 million bales in 2008-09, but the production was less than the revised target.

Average production last fiscal year remained 21.20 maunds per acre, while 40 maunds per acre production is expected in Punjab and Sindh due to use of BT cotton seed. Pakistan is the only major cotton producing country where certified BT cotton seed had not been introduced, as its production was more than other seed varieties, the sources said, adding the country was importing over three million bales to meet the demand of the local textile industry.

Reactions: Like Like:
1


----------



## Neo

*Pakistan's economy looking for lubricants​* 
KARACHI (July 04 2009): Pakistan's economy is in desperate search for a lubricant, as the latest data reveals that credit to private sector nearly zeroed in the first eleven months of fiscal year 2008-09 (it is actually in negative territory as per weekly data released by SBP), as the government borrowing crowded out private sector credit off-take in an attempt to straighten its books with the central bank.

Data released by the State Bank of Pakistan shows that private sector borrowed just Rs 2.8 billion between Jul-May FY09 - nearly nothing compared with Rs 391 billion borrowed in the same period last year. A closer look reveals that farming and forestry sector, on which the government quite heavily needs to rely on, actually paid back Rs 1.9 billion of its debt in 11MFY09, as against borrowings of Rs 8.4 billion in the year ago period.

One might question that since when debt repayment became such a bad omen - but when contemporary economies need a wheel, credit is their major driver. Meanwhile, coinciding with the negative growth in manufacturing output last year, the sector saw borrowings drop by nearly three-quarters to Rs 44 billion in 11MFY09.

One of the major hits there was the debt repayment of Rs 20.7 billion by the textile sector - the backbone of our exports - compared with Rs 81.8 billion of net borrowings in 11MFY08. This is partially explained by fewer export orders, thanks to global meltdown, rest is attributed to stringent banks' loaning conditions in an effort to clean their assets portfolio and also textile manufacturers' inability to generate enough cash flows to meet rising credit cost.

Bucking the general trend, however, were borrowers involved in power, gas, and water supply businesses, who took Rs 39.7 billion worth of fresh loans in 11MFY09 - though still down nearly 36 percent from about Rs 62 billion in the corresponding period last year.

This, thankfully, at least comes in line with the government's efforts to produce more electricity - but one should be mindful that the figures also partly include loans taken for generators and UPS's etc. However, going forward, once the new projects come online to meet demand supply gap, this trend would not continue.

During the period, consumer financing tanked sharply as well, as higher interest rate regime deterred clean consumers to take new loans, while recessionary fear of low future earnings compelled bankers to virtual halt on fresh disbursement, if any.

Hence, consumers paid back Rs 61.2 billion in 11MFY09 as against net debt of Rs 14 billion in the year ago period. Part of this drop, includes the repayments of Rs 24 billion taken in auto financing, Rs 8 in credit cards and the mortgage repayment of Rs 4.3 billion.

Meanwhile, the government continued to gobble up credit from scheduled banks - a mammoth Rs 336 billion in 11MFY09 as against the repayment of Rs 130 billion in the corresponding period a year ago. This mainly stemmed from its desire to cut on its central bank debt in order to meet IMF's conditionalities.

This overall grim situation is evident from the negative manufacturing growth, which in turn induced decline in services sector growth momentum. The dearth of investment owing to bleak security situation and high interest rate regime with inflation gradually tapering down, now calls for an expansionary monetary policy.

Moreover, the halt in the privatisation process and low FDIs owing to global meltdown also compels the fiscal side to run a stimulus package. Although, these policies are not in line with the stringent IMF conditions, it seems no other solution is on cards to give wings to the economy.


----------



## Neo

*'Job creation through microfinance important pillar of Pakistan's economy'​*
LAHORE (July 04 2009): Personnel from US State Department, USAID, and US Congressman Jim Grayson have stated that the people in US are extremely concerned about the welfare of the people of Pakistan and believed that job creation through microfinance is a very important pillar to economically strengthen the country.

A delegation of US government officials met with the various leaders of Pakistan's microfinance industry as well as a group of female micro-entrepreneurs. Kashf Foundation, USAID, and Khushhali Bank jointly organised the event.

US Congress member Jim Grayson accompanied by his staff members, and personnel from the US State Department and USAID, had discussions with Roshaneh Zafar, the Founder and MD of Kashf Foundation and CEO of Kashf Microfinance Bank. She along with her colleagues explained various aspects of their fourteen-year long experience of replicating the Grameen Bank model as well as its adaptation to the Pakistani socioeconomic environment.

Later, US Congress member Jim Grayson met with women microfinance clients of Kashf Foundation and candidly inquired about their different experiences in availing the financial services offered by the Foundation and congratulated them on their perseverance.-PR


----------



## 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.

Reactions: Like Like:
2


----------



## 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

Reactions: Like Like:
4


----------



## 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.

Reactions: Like Like:
1


----------



## Neo

*US firm offers modern drilling equipment to OGDCL ​*
ISLAMABAD (July 05 2009): President Rig Boss LLC, USA, Larry Russell Jorden has offered to provide technological state of the art customised drilling equipment and other engineering, cementation, logging and wire line services to the Oil and Gas Development Company Limited (OGDCL).

He made this offer while visiting OGDCL House along with other members of the company to explore areas of interest and understanding about exploration and production activities. The company has designed lighter weight drilling equipment to overcome issues of logistic security in difficult parts of the world, which is lifted and installed by air onshore and offshore.

Managing Director/CEO OGDCL, Zahid Hussain welcomed the delegation and briefed them about OGDCL drilling operation and Strategist Business Plan 2009-10. He said, "OGDCL is the national Oil and Gas Company having largest acreage of E&P Licenses in Pakistan." He said OGDCL had drilled 30 wells during the last one year and next year's target was higher than the present one.

The Managing Director apprised the delegation of the difficulties being faced by OGDCL to approach far flung areas in the country, particularly in Balochistan province. He said OGDCL had acquired an exploration license for offshore drilling and likely to drill a well there in near future, and OGDCL had also participated in bidding to acquire E&P interests abroad. "OGDCL is a major oil and gas producing company as compared to other E&P companies operating in Pakistan."


----------



## Neo

*Import of rental power plants ​* 
*Govt secures Rs25bn loan from banks​*
Tuesday, July 07, 2009

KARACHI: The government has secured bank loans for power plants which it wants to import on rent for containing a worsening electricity shortfall after giving a guarantee against any default.

A review meeting in this regard held here on Monday between the CEOs of banks and Finance Adviser Shaukat Tarin noted with satisfaction that nearly Rs25 billion for around 1,100-megawatt projects has been committed, those who attended the meeting told The News.

About 80 per cent of the financing requirement has already been met, said Aftab Manzoor, Chairman of Pakistan Banks Association. The government is giving us guarantees.While the lending portfolio of most of the small banks has little or no exposure to the dilapidated and loss-incurring power sector, the big ones are quite exposed to it.

According to their 2008 financial statements, Habib Bank and Allied Bank Limited (ABL) have made eight per cent and 13.8 per cent of their overall advances to the power generation sector, respectively.

In the past, electricity generation companies have been marred by their inability to pay off debt after failing to receive payments from distribution companies. The power sector is owned and managed by the government.

Even private power producers have guarantees that the electricity they produce will be bought by distribution companies.A multibillion rupee inter-corporate circular debt, settled just months back after the government borrowed over Rs80 billion from banks, was essentially a result of distribution companies, which lose a lot of electricity in the system and are unable to recover bills from consumers.

There is no other choice; we have to lend, Manzoor said, insisting that rampant power breakdowns have made such investment in the generation sector a national requirement. Actually it is important for our business. We lend to industries, which need electricity to remain viable.

Incessant power breakdowns have become one of the major factors behind falling industrial production. They have also turned into a bane for authorities who have to deal with angry consumers rioting on streets.

However, another participant hinted at banks inclination to lend to government-guaranteed avenues when the economy is still reviving. Well, banks are not worried about advancing to the power sector and it is evident from investments in treasury bills.

Though the government has shown fiscal prudence by containing budgetary borrowing during 2008-09, it has not been able to raise taxes fast enough to meet the debt which is being accumulated.

Analysts have warned that the power sector will only be in a position to repay its debt if electricity tariff is increased, a move that is politically difficult. International oil price will also be crucial since expensive fuel oil adds to power tariff, which consumers find difficult to pay, they added.


----------



## Neo

*Trade balance in Indias favour despite fall in imports ​* 
Tuesday, July 07, 2009

ISLAMABAD: Despite negative growth in imports from India and growth of Pakistani exports to India, the trade balance between the two sides is in favour of India showing a surplus of $456 million, reveals official trade figures compiled by the commerce ministry for the first seven months of FY 2008-09. 

In the trade policy of 2008-09, CNG buses, stainless steel, cotton yarn, academic, scientific and professional books, specialised printers, laminators and rollers were allowed from India. The import of these items would help address the global trade deficit of the country, said the policy. Cheaper raw material from India would make Pakistans exports more competitive in the international market and the import of diesel and fuel oil from India would also help address global trade deficit, the policy added. 

The importers are too smart and they only means business and know where they get profit and what raw materials are cheaper and would have margin of profit, said Senior Joint Secretary Shahid Bashir when asked for comments. 

Pakistans exports grew 60 per cent from $146 million to $235 million from July to January with major increase in fish & fish preparations, cereals, crude rubber, raw cotton, jewellery, music instrument, hosiery and petroleum products. 

However, some of Pakistani exports showed negative growth which included vegetables, pharmaceutical products and paper, it added. It further said that Pakistans imports from India registered negative growth of 21 per cent from $885 million to $691 million during the period under review. Main items imported from India included cereals, vegetables, crude mineral, fertiliser, leather, rubber, cork & wood manufactures, yarn and surgical instruments while those that registered negative growth consisted of live animals, raw cotton, aircraft equipment, travel goods and apparel. 

Besides a South Asian Free Trade Agreement (SAFTA) between Pakistan and India, both the sides through a formal way had limited tradable items while through informal ways (via Dubai) they traded a huge quantity of items.


----------



## Neo

*WB pledges $1.7bn aid to Pakistan​*
ISLAMABAD: The World Bank has pledged $1.7 billion in financial aid for Pakistan, for the fiscal year 2009-10, to help the country overcome the ongoing global economic crisis, a press release issued by the bank said on Monday.

It said the financial support aims to help Pakistan maintain economic stability, steer the economy onto a higher growth path and help the government in effectively protecting the poor from the global economic crunch.

Pakistan has faced daunting challenges over the past year, including a domestic macro-economic crisis, a global recession, political turmoil and grave security challenges, said Yusupha Crookes, the WB country director for Pakistan.

The three-fold increase in the financial aid demonstrates our commitment to promote growth and stability in Pakistan. The focus of our assistance has been to ensure that the countrys poorest citizens are shielded from the major adverse impacts of the ongoing global recession, he added.

The banks aid package for the current fiscal includes a provision of $250 million for the Pakistan Poverty Alleviation Fund (PPAF), a programme that the WB has supported since 2000. During the last nine years, the PPAF has facilitated the formation of 80,000 community organisations and provided $1.9 million in micro-credit loans, besides supporting 16,000 infrastructure schemes.

The WB also continues to support the education sector in Punjab and Sindh. For fiscal year 2009-10, the bank committed $650 million to support the provincial government-run education reform programmes, aimed at increasing the number of children receiving education, reducing gender and rural-urban disparities, and improving the education sectors quality and its governance.

Also, the WB, in collaboration with the Japanese government, convened the international community in Tokyo for a donors conference in April to mobilise additional resources for Pakistan. Donors at the conference rallied to support Pakistans macro-economic recovery with $5 billion in funding to meet the countrys immediate needs.


----------



## Neo

*Trade in services with China: Cabinet directs Commerce to revisit accord ​* 
ISLAMABAD (July 07 2009): In an extraordinary development, the Cabinet has directed the Commerce Ministry to revisit the agreement on trade in services with China, signed on February 21, 2009 at Wu Han during the visit of President Asif Ali Zardari, official sources told Business Recorder.

"Stakeholders in private business and chambers of commerce should be involved, and the agreement be thoroughly reviewed to ensure that its provisions did not supersede or come in conflict with agreements already signed", sources quoted the Prime Minister as instructing Commerce Minister Amin Fahim and Suleman Ghani.

Sources said that Cabinet was informed that the agreement had already been signed on February 21, 2009 during the visit of the President, with the approval of Prime Minister, with the direction to place it before the Cabinet. The agreement aimed at improving the investment regime in services sector and promoting joint venture to encourage transfer of technology and create jobs.

The Cabinet was informed that the provisions of the agreement complied with General Agreement on Trade in Services (GATS). It was stated that interests of domestic stakeholders were protected in the Agreement, which fully conformed to domestic laws.

Sources said attention of the Commerce Ministry was invited to the negative balance of trade with China and it was emphasised that measures should be adopted to derive benefit from the agreement and protect Pakistan's economic interests.

According to sources, Commerce Minister was further directed that Ministries of Finance and Privatisation had not been consulted on issues carrying legal implications. The Cabinet, however, was of the view that as China is a time-tested friend of Pakistan, such initiatives were welcome but implementation details must be scrutinised to secure equitable access of Pakistani goods and services into China.

Official documents available with Business Recorder show that notification to implement the agreement will be exchanged with China, after the signing of the Agreement, on a date convenient to both sides. "Implementation of the agreement by all stakeholder Ministries and the placement of agreement along with its annexes on the websites of all stakeholder Ministries and Departments has already taken place as claimed by the ministry," the documents say.

While approving these proposals, the Prime Minister also directed that the proposed agreement should be placed before the Cabinet for information in its subsequent meeting.In accordance with Article 83 of the bilateral Free Trade Agreement (FTA), negotiations on an "Agreement on Trade in Services" were initiated. The agreement was concluded after five rounds of negotiations with China on December 3, 2008.

THE AGREEMENT ON TRADE IN SERVICES WAS NEGOTIATED IN THE FOLLOWING MANNER: 

(i) the agreement is based on positive list concept ie bilateral commitments made in specified sectors & sub-sectors;

(ii) WTO plus - building upon multilateral commitments of both countries and Pakistan's initial and proposed revised offer in the ongoing Doha Round;

(iii) in consultations with all stakeholders;

(iv) all domestic regulations relating to limitation on national treatment were kept intact;

(v) in areas where no domestic regulations have yet been finalised by the stakeholder Ministries, room has been kept to make such regulations, which will also be applicable to China.

The Commerce Ministry claims that the following objectives were kept in view while negotiating the Agreement with China: (i) to integrate economies of Pakistan and China for mutual benefits; (ii) to provide a predictable investment regime in the services sector, especially in infrastructure, computer and related services, educational services, research and development, tourism, sporting services and environmental services like sewage and cleaning services; (iii) to promote joint ventures to build the capacity of domestic service suppliers, transfer of technology and creation of new jobs in Pakistan.

According to the Ministry, during negotiations of Pakistan's schedule of specific commitments, all stakeholder Ministries and Departments were taken on board. The interests of the domestic stakeholders will remain protected as for the Chinese investors all Rules, Regulations and restrictions like purchase of land, securing work permits and the visa regime of Pakistan relating to Foreign Service supplier are an integral part of Pakistan's offer.


----------



## PeacefulIndian

Omar1984 said:


> 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



Do we have any numbers here, how many power plants would be built & where? Any timeline? 9300 MW looks like one hell of a number. China & India have a total wind power capacity of about 8000 MW each by now, with China adding nearly 5500 MW in last 3 years alone. 

I would be very eager to know the budget & the targeted end of this venture.


----------



## Hyde

PeacefulIndian said:


> Do we have any numbers here, how many power plants would be built & where? Any timeline? 9300 MW looks like one hell of a number. China & India have a total wind power capacity of about 8000 MW each by now, with China adding nearly 5500 MW in last 3 years alone.
> 
> I would be very eager to know the budget & the targeted end of this venture.



Pakistan has planned to generate 10,000MW by 2030 so all this 9300MW is not coming in a year or two. It will take 2 decades to achieve this target of 10,000MW

Reactions: Like Like:
1


----------



## PeacefulIndian

Mr X said:


> Pakistan has planned to generate 10,000MW by 2030 so all this 9300MW is not coming in a year or two. It will take 2 decades to achieve this target of 10,000MW



I had thought the same. But I would have expected more details in that piece of news, since it says that 'projects have been finalized'. 

So exactly what has transpired? Where will the power plants be constructed? Where is the budget allocation? What wind turbines will be used? What foreign/domestic manufacturers are bidding for the contracts? And how many phases will it have? What is the targeted timeline for completion of each phase? 

Too many unanswered questions for a 'finalized' project.

Reactions: Like Like:
1


----------



## Hyde

PeacefulIndian said:


> I had thought the same. But I would have expected more details in that piece of news, since it says that 'projects have been finalized'.
> 
> So exactly what has transpired? Where will the power plants be constructed? Where is the budget allocation? What wind turbines will be used? What foreign/domestic manufacturers are bidding for the contracts? And how many phases will it have? What is the targeted timeline for completion of each phase?
> 
> Too many unanswered questions for a 'finalized' project.



good questions

As far as i know the only wind projects started so far are in *Gharo* however there are some other locations under considerations and nothing final yet. Currently 50MW of Power plant going to be setup by Turkey, German and Americans until next year and 1000MW eventually with the assistance of German. I can't remember any other project so far that is currently being built

Some little info about Wind Power in Pakistan

Wind power in Pakistan - Wikipedia, the free encyclopedia

Gharo Wind Power Plant - Wikipedia, the free encyclopedia

Got to go


----------



## Neo

*KESC to go for Thar coal power generation in two years ​* 
*Chief executive says investment has started pouring in for coal power generation plants​*
Wednesday, July 08, 2009

KARACHI: The Karachi Electric Supply Company will go for Thar coal in coming two to three years as the company gains some financial strength.

We are now getting investments in KESC from May 2009 with the signing of the final agreement, the KESC chief executive officer Naveed Ismail said during his visit to the Korangi Association of Trade and Industry (KATI) on Tuesday to meet industrialists.

He informed that KESC is working on three coal power plants to reduce the dependence on furnace oil and gas. He emphasized that coal and hydropower are the only two cheap and reliable options available to Pakistan.

He rebuffed the reports that coal in Sindh is not suitable for power generation. Coal in Sindh is usable. Our future generation will never forgive us if we fail in utilizing Thar coal. 

A large number of industrialists lauded the efforts of present management of KESC and their consistent improvement in power distribution; they said that for the first time in the history of KESC they are dealing with professional team. 

Ismail said that KESC has been criticised because what should have been delivered has not been delivered in last three years. Though, we took charge 10 months back, only six weeks back in May 2009 we have taken over the company completely, he said. 

Ismail said that load-shedding in industrial areas is less because, we want our industry to run uninterruptedly and that people can retain their jobs. The other reasons are that there are less power thefts in industrial areas and we get better revenue also.

Kaukab Iqbal, Chairman, Consumers Association of Pakistan said that average billing is unjust for those who are now conserving energy with more power savers and paying electricity bills honestly. 

On replying a query about average billing, KESC chief said, we are trying to reduce average billing from 15 per cent.

Revival of KESC is the revival of Karachi, he said adding, I assure that every coming week and month will be better than previous one.

He informed that over 50 MW power consumption increases with the rise of single degree mercury in Karachi and power consumption is continuously rising in this summer which is 2300 MW per day till date.

We are certainly in problems as far as our debts and debtors are concerned. We have Rs36 billion on our customers, which also include many government departments, Ismail said.

He asked industrialists for their support and said, we are ready to settle our various issues out of courts in order to save time and energy.

On disconnection of illegal connections, he informed, we are disconnecting some 55,000 to 60,000 illegal connections a day without taking any pressures from influentials.

Industrialists complained that KESC complaint centres dont receive phone calls and if they do they generally dont know where faults occur and how and when their team can restore the system.

The CEO of KESC accepted the fact that their complaint centres need much more improvement. We have raised complaint centre staff to 300 from just 25 employees when we took over the company however, still we need raise this figure to 500 for better results.

He lamented that KESC collect various government taxes with electricity bills which is the duty of FBR, and this also affect our customers as their monthly bill increase by 22 to 25 per cent owing to these taxes.

When asked would he register FIR against the influential people who are caught in power thefts, he said, Yes, now I am thinking about it. There are numerous big names that have been caught in electricity theft. 

Mian Zahid Hussain, Chairman, Korangi Association of Trade and Industry (KATI) said that the recovery of KESC from KATI is 97 per cent and there is no power theft in our industrial zone. 

Hussain added that though industrial areas are exempt from load-shedding but owing to the heavy load-shedding in residential areas our workers efficiency is being affected daily in industries. 

He asked KESC management to reduce line losses and power thefts as this burden is being drawn to the honest power consumers. 

KESC team is media shy. KESC should also face media and convince them because KESC is working better now and they have enough relevant points to make before media, he suggested.


----------



## Neo

*Karachi fourth in worlds cheapest cities ​* 
Wednesday, July 08, 2009

ISLAMABAD: A global survey naming Tokyo and Osaka as the worlds most expensive cities for expatriates, largely due to the strength of the yen against the US dollar, rated Karachi as the fourth amongst the most cheapest cities of the world, as it stands on 140th position in the list of most priciest 143 cities.

The 2009 Cost of Living survey, by consultancy firm Mercer, covered 143 cities across the world, measuring the comparative cost of over 200 items, including housing, transport, food, clothing, entertainment and household goods, Geo News reported.

Tokyo, last years second most expensive city, climbed to the top spot, knocking Moscow down to number 3. Geneva and Hong Kong ranked 4th and 5th, with Asian and European cities dominating the top 10 slots. The survey, conducted in March, uses New York as the base city for the index, with currency moves measured against the dollar. New York itself jumped to 8th from 22nd last year.

As a direct impact of the economic downturn over the last year, we have observed significant fluctuations in most of the worlds currencies, which have had a profound impact on this years rankings, said Nathalie Constantin-Metral, a senior researcher at Mercer.


----------



## Neo

* Trade caravan planned for China, Kyrgyzstan ​* 
Wednesday, July 08, 2009

KARACHI: Pakistans trade caravan to China, Kyrgyzstan and Kazakhstan will start its journey from Karachi on October 15 to explore business opportunities there and to project Pakistans trade and investment potential. 

Initially, it will consist of a 150-member delegation and other members of the business community will join them later from different cities of the country making total number of delegates to 450. 

This 20-day important business tour has been initiated by Pakistans Embassy in Almaty (Kazakhstan) in collaboration with Trade Development Authority of Pakistan. In a meeting with members of Karachi Chamber of Commerce and Industry here at the Chamber on Tuesday, Pakistans Ambassador to Almaty Irfan-ur-Rehman Raja said Kazakhstan retains a large market for Pakistani goods especially furniture, garments, food items, pharmaceutical, surgical goods and jewellery. 

He said Kazakhstan can prove one of the best business avenues for Pakistan. Its annual exports figure $31 billion. Kazakhstan bristles with a very education rate, he said. You will find many local business partners in Kazakhstan. Through whom you can also get exemption from various taxes and duties there, he asserted. 

Raja informed the KCCI members that construction work on Shahra-e-Karakorum was being carried on fast track by a Chinese company. To escape closure of this road linkage with China and Central Asian States during winter and monsoon seasons, 66 tunnels, open and close, were being constructed along with Shahra-e-Karakorum. With the completion of this construction work, undistrupted communication with these neighbouring countries would be ensured. 

This would be very helpful in promoting trade and investment between Pakistan and these countries. Pakistans ambassador to Almaty said the maximum participation by the business community in the trade caravan would be appreciated by the Pakistan government. 

President KCCI Anjum Nisar said many KCCI members companies were eager to invest in Kazakhstan especially in joint ventures. He said the KCCI gives big importance to this trade caravan. He assured that KCCI would welcome exchange of business information with the Pakistans embassy in Almaty.


----------



## Neo

*Global Enabling Trade Report 2009: Pakistan 100th among 121 countries
​*
ISLAMABAD: Pakistan has been ranked 100 among 121 world economies featured in The Global Enabling Trade Report 2009 a drop of 16 places. Pakistans neighbors secured slightly better positions even though their ranking deteriorated, India placed 76 and Sri Lanka 78 compared to 71 & 70 last year. Bangladesh slipped one spot to 111 while Nepal improved to 110 from 116. 

East Asian economies - Hong Kong and Singapore - occupy the top two positions in the Enabling Trade Index ranking, followed by Switzerland, Denmark and Sweden, according to The Global Enabling Trade Report 2009, released by the World Economic Forum. Canada, Norway, Finland, Austria, the Netherlands, New Zealand and Germany complete the top 12 standings. 

The Report, second edition, aims at presenting a cross-country analysis of the large number of measures facilitating trade. The Enabling Trade Index captures the free flow of goods over borders and to destination. 

The Report comes at a crucial time for global trade, as overall economic activity declines, trade volumes drop and public authorities adopt counter-cyclical stimulus policies and institutional reforms. 

The Enabling Trade Index, featured in the report, measures the factors, policies and services facilitating the free flow of goods over borders and to destination. The index breaks the enablers into four overall issue areas: market access, border administration, transport and communications infrastructure and the business environment.

Chief Executive Officer of the Competitiveness Support Fund Arthur Bayhan, the partner institution for the World Economic Forum in Pakistan, said: Pakistan needs to put immediate attention to facilitate an environment conducive to trade and investment, including a transparent and efficient border administration, well developed transport infrastructure and highly efficient services. 

He said in improving its ranking in the Global Enabling Trade Report Pakistan would play a crucial role for trade transactions between Afghanistan and India. Pakistan would be a transport hub for Central Asia to reach the sea transport facilities in Karachi and Gwadar. Furthermore, through the new trade corridor and Karakoram Highway Pakistan would increase its competitiveness in trade and investment. 

Pakistan ranked 111 in the market access pillar, 63rd in business administration, 80 in transport and communications infrastructure and 102 in business environment. 

The current challenge is to ensure not only that countries not pull each other down further by restraining trade, but that they help recovery by trading with each other. Further enabling trade across borders can mitigate the effect of the global crisis, as measures facilitating trade will reduce the transaction cost of trade and therefore partially offset the effects of the demand slump. The report provides guidance on measures that need to be taken, said Robert Z. Lawrence, Albert L. Williams Professor of Trade and Investment at the John F. Kennedy School of Government at Harvard University, USA. Professor Lawrence is also academic adviser and co-editor of the report. 

Over the last two years, the World Economic Forum has engaged key industry leaders, academics and international organizations active in the area of trade to identify the main obstacles to trading across borders and to develop the Enabling Trade Index. The goal was to construct a platform for multi-stakeholder dialogue and to create broad-based support to counter protectionist sentiment from building in the present crisis, said Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum. 

The report also features a number of contributions from trade experts and industry practitioners exploring different aspects of trade enablement. A particular focus has been placed this year on customs, one of the key areas of the Doha negotiations on trade facilitation. Also included are detailed profiles for each of the economies covered by the study. 

The report also features a number of contributions from trade experts and practitioners with relevant knowledge and experience in reducing barriers to trade and national trade performance. Also included is an extensive section of data tables, including each indicator used in the Enabling Trade Indexs computation.


----------



## Neo

*Pakistan meets IMF amid struggle to revive growth​*
KARACHI: Pakistani officials meeting an International Monetary Fund mission this week face a battle in mapping out a strategy for reviving economic growth while keeping fiscal spending in check, analysts said.

Officials are currently meeting the mission in the Turkish city of Istanbul to discuss Pakistans performance under its $7.6 billion IMF programme, launched last November to help the country avert a balance of payments crisis.

The programme has got off to a good start, with inflation easing and the central banks foreign exchange reserves back above $8 billion after falling to $3.3 billion last November, the IMF said in a report in late June.

But the fight against Taliban militants in the northwest, uncertainties created by the slump in global demand and domestic power shortages all add to the challenge of pulling the economy out of what is likely to be an extended phase of sluggish activity, analysts say.

Pakistans economy has likely entered an extended phase of low growth, a trend that would require rigorous economic planning and its successful execution to address the entrenched structural weaknesses, said Asif Qureshi, a director at Invisor Securities.

Pakistan is looking to secure the roughly $875 million third tranche of the IMF loan, which was originally meant to be disbursed in June. The IMF board is now set to meet by the end of this month to take a decision on the release of the instalment.

While both officials and analysts expect the money to be released, the talks put the spotlight on the difficulties facing the economy and the governments plans for dealing with them. 

Economic growth slid to 2 percent in the 2008/09 fiscal year ended on June 30, tantamount to recession for a country with annual population growth of more than 2 percent and with more than a third of its 170 million people living in poverty. 

Combating Islamic militancy is likely to cost billions of dollars over the next few years, analysts estimate, and increased dependence on foreign funding will not make the task of jump-starting growth any easier.

Funding is a big concern, as we are still not sure about the money that should be coming from the Friends of Pakistan, a senior government official said, referring to a group of international donors which met in Tokyo in April.

The 2009/10 budget, unveiled last month, has already factored in 178 billion rupees ($2.18 billion) of aid from that group, and the government is still seeking money from friendly governments and international lenders.

Adding to the troubles, widespread power outages resulting from the countrys roughly 3,000 MW power deficit are hurting the textile sector, the countrys main exporter.

The governments continuing subsidies for electricity are one of the key sticking points of its talks with the IMF. 

The IMF wants the government to increase power tariffs to shore up its balance sheet, but doing so would be politically sensitive as it would add insult to the injury of frequent power cuts for many of the countrys residents.

Given the weak political and security situation of the country and poor governance, both domestic and foreign private sector investment activity is also likely to remain muted, said Invisors Qureshi. reuters


----------



## Neo

*Businessmen for banning cotton export ​*
ISLAMABAD: Despite bumper cotton crop this year, the textile industry was confronting shortage of cotton; therefore, government should ban the export of cotton to bring stability in the domestic market. 

During a meeting President, Islamabad Chamber of Commerce & Industry (ICCI) Mian Shaukat Masud said that cotton production might exceed the target of 13.36 million bales in 2009-10 following increased sowing in Punjab and Sindh and usage of Bt seed for the current financial year. 

The cotton production remained 2.7 million bales below the set target of 14.1 million bales during the outgoing fiscal on account of non-supply of better quality seed, short supply of quality inputs and insufficient water supply and stressed upon the government to address these issues on priority to meet the cotton targets in future.


----------



## Neo

*Chinese delegation discusses development projects with governor ​* 
PESHAWAR (July 08 2009): A three-member delegation, representing a consortium of five Chinese construction firms called on the NWFP Governor Owais Ahmed Ghani at Governor's House, Peshawar on Tuesday and discussed possibilities pertaining to construction of mega development projects in the provincial capital.

Provincial Senior Minister Bashir Ahmed Bilour who also holds the portfolio of Local Government and Rural Development, Minister for Transport and Information, Mian Iftikhar Hussain, Additional Chief Secretary, Ghulam Dastagir Akhtar, Secretary to Governor, Arbab Muhammad Arif, Secretary Local Government and Rural Development, Hifz-ur-Rehman and the senior officers of Peshawar Development Authority attended the meeting.

The Governor welcomed the interest of the consortium in the development of civic amenities of Peshawar City, especially the construction of its General Bus Terminal and said, "while the master planning of the entire city indeed needs to be revisited, the immediate needs of the citizens have to be provided on priority basis as well and this project is of great importance in this respect".

He also expressed the hope of having productive relationships with the Chinese investors in the development of the historic city of Peshawar. The General Bus Terminal, he said, if fully materialised through them, would indeed be a good addition in the long list of the joint ventures between both the countries.


----------



## Neo

*Increasing agriculture production and exports: 'Saarc states have to ensure world quality standards' ​* 
ISLAMABAD (July 08 2009): Under WTO regime, all Saarc countries have to ensure international quality standards including sanitary, phyto-sanitary measures for increasing agriculture production and exports. Secretary Local Government and Rural Development Muhammad Saleem Khan Jhagra expressed these views during second day of workshop on "Role of Media in accelerating agriculture production in Saarc countries" here on Tuesday.

The developing countries have to do more for complying with international standards. In Saarc countries, he said mostly land was used in unplanned manner resulting in low production. Due to lack of education, the growers usually fail to properly use fertilisers, which affect the agriculture production in member states.

The secretary recommended that the centralised Information Center at Saarc level should be strengthen for greater benefits to farmers. Visual media has good impact on educating farmers about new skills and technologies; however, its excess was limited to main urban centers. He also stressed the need for expanding computer literacy so that the farmers might be well informed about development in advanced countries.

Agriculture Development Commissioner Qadir Bux Baloch in his presentation said agriculture sector in regional countries is confronting several hurdles including water shortage, environmental degradation, and non-availability of certified seeds, fertiliser, pesticides and climate change.

In such situation member countries have to sought out collective solution from single platform because the Saarc countries have similar situation. He said food security was big issue, confronting the member states and it required proper attention. In this regard media could play an important role in dissemination of latest information about agriculture development.

He identified some issues related to agriculture inputs like agriculture credit, farm mechanisation, irrigation water, availability of fertilisers, seeds and planting materials, plant protection measures and transfer of technology. According to ADC, the member states also confronting some agricultural outputs issues like post harvest losses, storage capacities, marketing problems, processing and grading, standard/quality of produce and compliance of rules.

To resolve all these issue he stressed the need for collective efforts so as to make agriculture sector a profitable business and ensure food security among members. He said extending all kind of support to media to facilitate transfer of technology from research institute to farmers to boost agricultural production and quality for socio-economic development was a component of "agricultural Policy of Pakistan".

"Mass communication" was one of the strongest methods in transferring technology among the rural people through radio, television, documentary films and print media specially poster, folder, leaflet, booklet, newsletter, magazine, banner, festoon and so on.


----------



## Neo

*About 45,000 tons of mangoes exported in 2008-09 ​* 
LAHORE (July 07 2009): Pakistan has exported around 45,000 tons of mangoes till June 30, 2009 which is almost double of the quantity exported previous year during the same period. Pakistan Horticulture Development and Export Board (PHDEB) has fixed an export target of 100,000 tons of mangoes this year (2009 season), and keeping in view the present exports figure, the Board is hopeful that it will achieve this target.

PHDEB Chief Executive Officer (CEO) Shamoon Sadiq, while talking to Business Recorder here on Monday, said, "If things go smooth they hope to get 50 million dollars through export of mangoes this year." Talking about various initiatives taken by the Board this year for enhancing export of horticulture products, especially mangoes, Shamoon added that he had recently visited Germany to explore market for the export of mangoes. He said, "Germany has a great potential for Pakistani mangoes provided our farmers and exporters fulfil their requirements such as GlobalGap and other certain certifications."

He said importers from Germany had assured him that if their requirements were fulfilled there would be no issue in buying mangoes from Pakistan. Shamoon said during his visit to Germany they had received two orders out of which one party wanted almost two tons of mangoes per week and other needed more than that.

It may be mentioned here that according to the Mango Development Strategy devised by PHDEB for the current year, they had the plan to target new markets such as China, Jordan, Germany and USA.

"In the long-term, PHDEB has set itself a mango export target of $80 million by the year 2011-12. Although there is a huge potential to capitalise the high end markets, but this would only be possible if we can comply with quarantine requirements of the importers, which means adapting quality standards throughout the supply chain." "An important component is to establish required infrastructure such as packing houses with Hot Water Dip facilities and cold storage at production areas."

He said on the compliance side, PHDEB had already initiated EurepGAP programme both in Punjab and Sindh. "This year PHDEB plans to expand this programme to bring maximum mango orchards under GlobalGAP scheme, which will ultimately support in enhancing mango exports to the higher end markets," he added.

It was expected that 3,000 acres mango orchards would get GlobalGAP certification in Punjab and 2000 in Sindh. While three awareness seminars on SPS, one in Sindh and 2 in Punjab would be held.

The adoption of GlobalGAP standards had indicated that the possibilities for development of indigenous commodity specific standards for either local or export marketing should be initiated, he said Initially the PakGAP standards would be developed in consultations with relevant organisations/certification bodies, Shamoon concluded.


----------



## Gin ka Pakistan

I just bought some Pakistani Mangoes here from a Desi store and they are the best as compare to Mexican mangoes available at Gora stores.


----------



## Neo

*$10bn investment target to be met: minister ​* 
Thursday, July 09, 2009

ISLAMABAD: The Federal Minister for Investment, Waqar Ahmed Khan, said here on Wednesday that the ministry would achieve its $10 billion investment target by the years end.

Talking to journalists, he said that the ministry has already attracted investment of $5 billion so far. He said that Pakistan was a growing economy, having vast investment opportunities with lucrative returns, adding that due to economic prudence and business-friendly policies, the government has attracted potential investors.

He noted that China Mobile was an investment success story in Pakistan and more investment worth $1 billion is coming in a year due to the expansion of the mobile companys network. China Mobile is hosting an international seminar in China to share their experience of profitable investment in Pakistan, he said, adding that fifteen leading mobile companies of the world would participate in the seminar.

The minister said that the government was concentrating on the development of the power sector on priority basis to deal with the energy shortfall, particularly in the textile and manufacturing sectors. He said that import of 1.5 million tons of LNG and one million tons of LPG from Qatar would help provide consistent power supply to the industrial sector.


----------



## Neo

*Rs 29.371 billion profit earned by OMCs in seven years: Judicial Commission report ​*
ISLAMABAD (July 09 2009): The Judicial Commission, headed by former justice Rana Bhagwandas probing the petroleum pricing mechanism, has revealed that oil marketing companies (OMCs) have earned a windfall profit of Rs 29.371 billion during the last seven years.

A financial summary of seven major OMCs, exposed in the commission's report, showed that their net profits increased from Rs 8.266 billion in 2001-02 to Rs 29.371 billion in 2007-08, a rise of 355.3 percent. The OMCs earned this windfall profit after Oil Companies Advisory Committee (OCAC), direct beneficiary of oil business, and was allowed to determine the oil prices.

The decision to this effect was taken by former president general Pervez Musharraf (Retd) as Chief Executive in December 1999 on a summary forwarded to him by the Ministry of Petroleum and Natural Resources. Pakistan State Oil Limited's net profit rose from Rs 3.188 billion in 2001-02 to Rs 14.054 billion in 2007-08 - a 440 percent rise in profit.

The increase in Shell Pakistan Limited's net profit was over 483 percent during the period under review, which swelled to Rs 5.137 billion in 2007-08 from Rs 1.063 billion in 2001-02 whereas net profit Pakistan Refinery Limited after 3516 percent increase in 2007-08 over 2001-02 surged from Rs 60 million to Rs 2.110 billion. Profit of Shell Pakistan Limited went up from Rs 1.063 billion in 2001-02 to Rs 5.127 billion in 2007-08 - an increase of 483 percent.

The net profit of Chevron Pakistan Limited, formerly known as Caltex, soared from Rs 624 million in 2001-02 to Rs 1.054 billion in 2007-08, registering an increase of 170 percent during the period, while the profit of Attock Petroleum Limited registered an increase of 1398 percent - from Rs 189 million in 2001-02 to Rs 2.642 billion in 2007-08.

The report further revealed that during the course of investigation undertaken by the commission, the oil companies, refineries, OCAC and Oil and Gas Regulatory Authority (Ogra), attempted to conceal evidence of windfall profits. The report said that Collector of Customs (Preventive) was directed to submit the bill of lading in respect of import of oil products by the oil companies in order to find out the actual cost, premium and freight paid.

But despite hectic efforts by the Collectorate of Customs, Karachi, oil companies refused to divulge information on the premise that FoB cost, available with them, comprised the cost of product and premium paid thereon, which included freight as well as the trading profit of seller. The commission's report concluded that it did not receive a positive response when it requested information on break-up of premium between freight and traders from the high officials of the PSO and Shell Pakistan.


----------



## Neo

*Country has 20,000 MW electricity generating capacity ​* 
ISLAMABAD (July 09, 2009): Minister for water and Power Raja Pervez Ashraf has said that the country has capacity to produce 20,000mw electricity.

Talking to local TV channel he said that at the moment, the total generating capacity is 15,000-16,000 MW if all units run smoothly. Out of this 6,500 MW is being generated from Hydro and remaining from Thermal units, nuclear energy and 1 percent from coal energy.

Minister highlighted that the total shortfall is from 300 to 3500 MW. Actually, the shortfall occurred because they did not install any new power generating plant for the past seven eight years whereas electricity demands increases approximately eight percent annually.

Certainly there would be mismanagement, but the real reason for load shedding is gap between supply and demand, he said.

The Government has succeeded to bring four billion dollars investment in power sector, he said.

The minister said that our government soon after taking power expedited the IPPs. In this regard he said that our government generated 90 billion rupees and paid it to the PEPCO and other power distribution companies. 

"At the moment all plants are running on their full capacity," he stated.

To another question about KESC, he said that previous government privatized to the KESC and NEPRA is authorized to take action against it if any complaint is received. There is system constraints in KESC. Its system is outdated and they promised to invest 361 million dollars in it.

Basically, Kuwaitti and Saudis took the KESC, they have changes their operation and maintenance management. The payment of the electricity given to the WAPDA employees are collected by their concerned companies, he added.

Commenting on war on terror, Raja Pervez said, "we did not start war on terror with our own liking. I think,it was imposed on Pakistan, we are fighting for our survival and we are in a state of war." Reuters


----------



## Neo

*Pakistans Inflation Slows, Giving Room for Rate Cut ​*
July 9 (Bloomberg) -- Pakistans inflation slowed to a 16- month low in June, giving the central bank scope to lower interest rates to prop up a faltering economy. 

Consumer prices in South Asias second-largest economy rose 13.13 percent from a year earlier after gaining 14.39 percent in May, the Federal Bureau of Statistics said on its Web site today. That matched the median 13.1 percent forecast in a Bloomberg News survey of nine economists. 

Pakistans economy has ground to a near halt as the global recession erodes exports and foreign investment and Taliban insurgents launch terrorist attacks in response to an intensified military campaign against Islamic extremists. The $146 billion economy may expand as little as 0.8 percent in the year to June 2010, according to HSBC Holdings Plc. 

Security concerns may hamper growth over the coming year as investors and consumers further rein in spending, said Frederic Neumann, an economist at HSBC in Hong Kong. The good news is that the central bank can begin to relax and start cutting interest rates, which should eventually nurse a recovery.

Reactions: Like Like:
2


----------



## Neo

*Loadshedding will end on permanent basis: minister ​*
MIRPUR (July 09 2009): Federal Minister for Water and Power Raja Pervez Ashraf here on Wednesday reiterated the government resolve to get the country out of the menace of loadshedding on permanent basis by end of this year. The minister declared that full power generation process from Mangla power house will be restored by 25th of this month.

He said that round-the-clock work for restoration of power from the country's second biggest reservoir was in progress. He was addressing a press conference here at Power House Mangla after visiting the recently-affected portion of the switchyard of the power station. Wapda Chairman Shakeel Durrani, Pepco Managing Director Tahir Basharat Cheema and other senior officials of Wapda and Pepco were also present on this occasion.

The minister said that the process of generation of 220 MW power from the Mangla power station will start in next couple of days. Raja Pervez Ashraf said the sudden breakdown from Mangla station was not less than a national tragedy. He said that with the collapse of the power generation process from 1100 MW power station, the nation had to face the shortfall of over 4600 MW of power.

He said that this shortfall was being reduced through various emergency steps taken by the government. The minister said that Pakistan would need power of about 100000 MW by the year 2025 and for this purpose, the incumbent government has started working on an integrated plan to fully meet the future needs. He said that Wapda could not bear such major incidents causing huge shortfall of electricity.

He said besides the common man, the business community and industrialists were also facing the loadshedding problem. He said that no negligence on the part of Wapda or Pepco causing such power breakdown will be tolerated in future.

He appreciated the workers who are engaged in the restoration of power from Mangla power station. The minister said that all those staff of Wapda deserve applause, who did not care about danger to their life during maintenance of the power plant.

He announced the award of an additional salary of two months for the staff members who immediately brought fire under control, which caused damage to only 20-feet portion of the cable linking the turbines to switch room of the national grid station at Mangla. He said that alternative arrangements were being made to meet the shortfall of power on emergency basis.

He said that work was in progress at Kohala, and Neelam Jhelum power projects besides upraising of the Mangla dam. He revealed that the government was also engaged to sign agreements with China and UAE to launch power generation projects in various parts of Pakistan.

While, steps were also being taken to import power from Iran, Kyrgyzstan and Tajikistan to meet the needs of power in the country. The minister issued orders of suspension of four senior officers of Wapda including Chief Engineer Mangla Chaudhry Muhammad Ashraf, Assistant Chief Engineer Karim Nawaz, General Manager Hydro, Azher Masood Panni and Resident Engineer Riaz Ahmed for sheer negligence of duties that allegedly caused a mega disaster at Mangla power station.


----------



## Hyde

Pak foreign reserves rise above $12 bn​


KARACHI (Nida Siddiqui): The countrys liquid foreign exchange reserves crossed $12 billion mark  a level that has been regained after a 14-month gap - on consistent and heavy inflows, ARY News reported Thursday.

Chief spokesman of the State Bank of Pakistan (SBP), Syed Wasimuddin, told ARY News that the foreign exchange reserves have increased by $431.4 million to $12,269.8 billion during the week ended July 4.

With this upsurge, he said, the reserves of central bank have reached $8,963.8 billion, while the commercial banks hold $3,306 billion.

Economists say that loan grants from World Bank, International Monetary Fund, Asian Development Bank and Islamic Development bank besides some other multilateral agencies have been pushing Pakistans foreign exchange reserves consistently.

However, they believe, the complete inflow of $7.6 billion of IMF and other agencies would further increase the debt, which will finally expedite massive outflow of foreign exchange on account of debt servicing.

Source: Pak foreign reserves rise above $12 bn,7/10/2009 1:36:20 AM


----------



## Neo

*Key details of Iran-Pak gas line not yet finalised ​* 
Friday, July 10, 2009

KARACHI: Pakistan has agreed to import gas from Iran through the multibillion-dollar pipeline without finalising important details which could jeopardise energy supplies to the country, people involved in the governments energy planning told The News.

Deemed necessary for meeting burgeoning energy requirements of the country, an agreement on the price of gas was sealed with Iranian authorities in May this year after remaining on the backburner for years.

Iran has only named its vast Pars gas field from where it will supply Pakistan but there is no mention of the specific block, the network of wells which make up the petroleum reserves.

In his brief remarks to The News, Secretary Petroleum Mahmood Saleem confirmed that particulars like block to be designated for Pakistan and procedure for insurance of gas supplies were yet to be decided.

Experts point out this means an independent verification of reserves to ascertain whether they will be able to meet the countrys demand for the desired 25 years has still not been done.

Contrary to the impression that work will start in a years time, another important aspect that has not been thoroughly worked out by government officials is the mammoth financing requirement.

Any consortium of banks willing to finance the 2,100-km pipeline will seek government guarantee, which may not be satisfying since Pakistans credit rating is below acceptable level.

Help of international financial institutions, running under the influence of anti-Iran United States, will be hard to muster, they warn.

In their effort to announce a major achievement in shape of Iran-Pakistan pipeline, petroleum authorities have sidestepped another important gas import project, which is expected to be awarded by the end of the year.

Almost all technical work on the Mashal LNG (liquefied natural gas) project has been completed and only confirmation of gas supplies is awaited from the company which is investing, people close to the two projects say.

LNG, which is first liquefied, transported on special vessels and gasified again at the port before being supplied, is the quickest way for importing gas.

Pakistan is fast running short of gas, the most used fuel in the country which helps run its industries and geysers and stoves in homes. It is also increasingly being used in cars now.

Already gas shortage has marred the economy. In winters, industries are forced to close their manufacturing plants to ensure gas availability to domestic consumers for water heating.

Now it is happening even in summers. Just days back, gas supply stopped to industries in the NWFP. The supply-demand balance was disturbed only because a gas field was closed for annual maintenance.

Pakistan consumes almost 4,000 million cubic feet of gas every day. All of the demand is met from domestic gas fields, like Sui in Balochistan, which are depleting rapidly as petroleum exploration companies struggle to find fresh reserves.

Munawar Baseer, former managing director of Sui Southern Gas Company (SSGC), says the gap between the supply and demand of gas in winters exceeds 800mmcfd. Work on Mashal LNG was envisaged to start in 2007 for these difficult times. Bureaucratic bottlenecks did not let that happen.

Even the gas shortfall figures, which are based on estimates done 4-5 years back, do not paint the real picture. Amid the worst power crisis, thermal power plants are increasingly being run on expensive fuel oil because of limited availability of gas.

Being managed by the SSGC, the Mashal project is not receiving the governments attention it deserves, officials involved in the project say. There is hardly any mention of the project in official statements.

They also fear that the company 4gas, which will develop an LNG terminal, auxiliary facilities and import gas, might back off if it did not see firm commitment of the government for a long-term relationship.

Despite a message left for GA Sabri, Additional Secretary Petroleum, he did not respond. SSGC MD Umair Khan was reluctant to speak to media.


----------



## Neo

*France to finalise partnership accord ​* 
Friday, July 10, 2009

LAHORE: French Economic and Commercial Counsellor Dominique Simon has said that the French President, Nicolas Sarkozy is planning to visit Pakistan by the end of the year to finalise an agreement on global partnership.

He was speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Thursday. LCCI President Mian Muzaffar Ali and Senior Vice President Tahir Javaid Malik also spoke on the occasion. Simon said that the agreement between Pakistan and France would help Pakistani businesses go global and technologically advanced.

Dominique Simon said that the French Minister of Foreign Trade Anne-Marie Idrac along with a team of MPs and businessmen is also visiting Pakistan, Lahore to have a direct interaction with the business community. He said that France was ready to cooperate with Pakistan in civil nuclear technology to overcome the ongoing energy crisis and for that purpose French companies were ready to make investment.

Simon said that France had recently signed an agreement with the Agriculture University Faisalabad that would help Pakistans agriculture sector. Speaking on the occasion Muzaffar Ali stressed the need for catalogue exhibitions, exchange of delegations, holding single country exhibitions and country weeks on reciprocal basis to increase the volume of two-way trade.

He said Pakistans agriculture produce is among the best in the world but it has failed to exploit the traditional strength in agriculture, horticulture, livestock and food processing because of the lack of technology. 

In this regard, French equipment and technology can help exploit Pakistans full potential.

He said mutual cooperation between the two countries is visible in the areas of trade, industry and investment.

The French multinationals have been able to find a favourable environment for long-term investment in Pakistan. Famous brands like Total, Alcatel and LU have also found growth and acceptance on the basis of strength of their products. Apart from these, there are several French firms engaged in the field of electrical equipment, oil and gas, rural telephony, civil engineering and defence.


----------



## Neo

*China MCC may invest $2.2bn in PSM ​* 
Friday, July 10, 2009

ISLAMABAD: China Metallurgical Group Corporation (MCC) has shown interest in investing $2.2 billion for the expansion and revamping of Pakistan Steel Mills (PSM).

A twelve member delegation of MCC headed by Huan, met here on Thursday with the Federal Minister for Industries and Production Mian Manzoor Ahmad Wattoo, and discussed various proposals in detail.

According to MCC, they will set up a new plant within 2 years as the first phase of the expansion project. The construction of the new plant will cost around $1.2 billion and upon completion, it will be capable of producing 2 million tons of steel per annum.

In the second phase the MCC will revamp and modernise the existing PSM plant. The second phase according to MCC will take another 2 years to complete and would cost around $1 billion.

They said that the revamping will raise PSMs production capacity to 3 million tons per year, which today stands at 1.1 million tons per year.

The minister took keen interest in MCCs proposals and appreciated Huan and her team for taking interest in the PSM project. He assured Huan that he and his team would deeply study their proposals and would take a final decision on the project very soon.

The MCC which already conducted a technical investigation of the PSM in 1992 and produced a 500 page report on the expansion of PSM in 2005 is Chinas leading multidisciplinary multinational company.

The MCC is known for its experience in scientific research, industrial engineering practice and international trading capabilities.

According to the MCC website, the group is a major driving force behind the growth of Chinas steel industry, and a reputable contractor of a number of key projects both at home and abroad.

Reactions: Like Like:
1


----------



## Neo

*CPI closes financial year 2008-09 at 20.77 percent​*
KARACHI: The Consumer Price Index (CPI) based Inflation-set to rise due to latest presidential move by restoring the petroleum development levy-settled in double digits during the financial year 2008-09.

CPI, the most widely used indicator to measure the fluctuation in the prices, closed at 20.77 percent for the last fiscal, Federal Bureau of Statistics (FBR) reported on Thursday.

In month of June 2008-09, it rose 13.13 percent over the corresponding period of previous year whereas it was almost one percent higher against the preceding month of May of the year under review.

Although high base impact supported annual CPI significantly, increasing MoM inflation remained the concern as it has continued upward trend since Feb-09. 

However, monthly inflation for May 2008-09 declined by 20bps MoM, indicating better crop yield to pay dividends in terms of lower food inflation going forward.

Major relief was witnessed in the core inflation Non Food and Non Energy), which grew 15.9 percent YoY down from 16.6 percent recorded in the month of May. 

"Easing of core inflationary pressures is a healthy sign as it will give some room to the central bank for a discount rate cut in the Monetary Policy Statement (MPS) expected at the end of current month", analyst Abbas Zulfiqar Ali at Ismail Iqbal Securities noted.

Easing of inflationary pressures is also reflecting in lower yields of 10 year PIB which is showing a declining trend. 

Food inflation, having 40.34 percent weightage in the CPI basket declined significantly compared with the previous trends and recorded 10.50 percent growth over the month June in the last financial year. 

Fuel & lighting index saw 23.78 percent growth during the month under review and house rent was up 18.60 percent.

Transport and communication rose 5.01 percent in the said month and education expenses grew 19.18 percent. Medical expenses went up 6.26 percent. 

Analysts believed that Supreme Court's decision to revise domestic oil prices downward could have helped arrest inflation, had the government not stepped in to impose PDL.

Though the move would help the government meet IMF targets, However, MoM inflation is expected to increase by 1.8pps in Jul-09 due to this step, though YoY inflation is not expected to be impacted due to a high base effect.

Moreover, risk of int'l oil prices is expected to remain significant as the oil price increase and implication of carbon tax was reflected in SPI for first week of Jun-09 which increased by 107bps MoM to 1.23 percent.

However, the upward shift in oil prices is now showing a reversal sign (crude oil declined by 11 percent MoM in Jul-09TD).

Sensitive Price Index (SPI) and Wholesale Price Index (WPI) closed financial year 2008-09 at 23.41 and 18.91 percent, respectively.


----------



## Neo

*US House okays $1.5bn assistance for Pakistan in FY 2010 ​* 
WASHINGTON (July 10, 2009): The US House of Representative approved on Thursday a $ 48.8 billion State and Foreign Operations bill that authorizes $ 1.519 billion in assistance for Pakistan in the fiscal year 2010, beginning October 1. 

On the same day, Senate Appropriations Committee also passed its own version of the State and Foreign Operations Appropriations measure that provides $ 1.57 billion in aid for Pakistan in 2010 financial year. 

The differences in versions of the two chambers are to be worked out before Congress sends a final bill to President Barack Obama for his signature. 

According to the House bill, Afghanistan will get $ 2.695 billion in assistance the year 2010. 

Besides, the House State and Foreign Operations Appropriations also includes a disaster assistance of $830 million, which will be used to help avert famines and provide life saving assistance during natural disasters and for internally displaced people in Afghanistan, Pakistan, Iraq and elsewhere around the world. 

Pakistan and international forces in Afghanistan are fighting Taliban militants in the border region. In the wake of 2001 terrorist attacks, the United States and Nato have deployed thousands of troops in Afghanistan, which has seen a stiff Taliban insurgency in the last two years. 

Pakistan has been a frontline state in the fight against al Qaeda and the Taliban and is currently engaged in a strong offensive against militants in on its side of the border. In the last two years, Pakistan has been the biggest victim of terrorism according to the State Department annual report.


----------



## Neo

*Nepal wants to establish economic, trade ties with Pakistan ​* 
FAISALABAD (July 10 2009): Nepal wants to establish reasonable business and economic ties with Pakistan, expressed Ambassador of Nepal, Bala Bahadur Kunwar, on the eve of a meeting held within the Faisalabad Chamber of Commerce and Industry. Both nations should take steps for mutual confidence-building, he added.

While bringing the business community of Faisalabad into confidence, he said, that there was no risk involved in investing in Nepal. It was also a pleasant fact that Nepal and Pakistan were close to each other politically, culturally and linguistically.

While referring to the good political relations between Nepal and Pakistan, the Deputy Chief of the Mission, K.N. Adhi Kari, said that there was a dire need to develop trade and economic relations between the two countries.

Talking about the SAARC countries, he told the audience that, in the last year, the trade volume between Nepal and Pakistan remained at 1.94%, which was too low as compared with other countries of the SAARC.

While addressing the audience Mian Hamid Javed, President, FCCI, said that despite an extensive 1982 trade agreement, the volume of bilateral trade remained comparatively small at USD 4.8 million. Pakistan's total exports to Nepal were worth USD 1.631 million, while Nepal's exports to Pakistan were USD 3.166 million. Both countries had recently, stepped up efforts to promote bilateral trade, especially in textiles, oilseeds, extraction of oil and tourism.

He further added that Pak-Nepal bilateral relations were based on the principles of sovereign equality and non-interference in each other's internal affairs. These relations would always flourish in times to come. At the end of meeting, the FCCI Shields were presented to Bala Bahadur Kunwar, the Ambassador of Nepal and K.N. Adhi Kari, the Deputy Chief of the Mission.


----------



## Neo

*Sarkozy to visit Pakistan for finalising global partnership accord ​* 
LAHORE (July 10 2009): The French President Nicolas Sarkozy will visit Pakistan by the end of this year to finalise an agreement of global partnership under which access of Pakistani businesses to the global market would be further strengthened besides advancement in the technology. The French Economic and Commercial Counsellor Dominique Simon revealed this while speaking at the Lahore Chamber of Commerce and Industry on Thursday.

He said that France had a history of relations with Pakistan and desires to further strengthen it. He said that French Minister of Foreign Trade Anne-Marie IDRAC along with a team of member parliaments and businessmen also visiting Lahore to have a direct interaction with the business community.

France was ready to cooperate with Pakistan in civil nuclear technology to overcome the ongoing energy crisis and for that purpose French companies were ready to make investment, he said. Dominique Simon further said that ALCATEL and TOTAL were planning to increase their investments in coming days.

It makes the point that France desires early economic revival of Pakistan, he said, adding that France had recently signed an agreement with Agriculture University Faisalabad that would help Pakistan's agriculture sector in a big way, Dominique Simon said.

Speaking on the occasion, the LCCI President Mian Muzaffar Ali stressed the need for catalogue exhibitions, exchanges of delegations, holding single country exhibitions, and country weeks on reciprocal basis to increase the volume of two-way trade.

There was a vast scope of joint ventures in the field of food processing, mining, oil and gas, he said adding that joint venture opportunities also exist in the field of high technology that includes telecommunication, chemicals, automobiles and shipbuilding.

He said the French companies could also participate in infrastructure development projects like railways, seaport development, telecommunications and electronics. He said Pakistan's agriculture produce was among the best in the world but it had failed to exploit the traditional strength in agriculture, horticulture, livestock and food processing due to lack of technology.

Although Pakistan was the 5th largest producer of milk in the world, the current industry was inadequate to meet the growing demand for milk and other dairy related products. In this regard, French equipment and technology can help exploit Pakistan's full potential in agriculture, horticulture, dairy, livestock and food processing sectors he added.

France and Pakistan had been steady trading partners. Analysis for the year 2007-08 shows that the trade between the two countries stood around 826 Million US Dollar. Pakistan's imports from France remained 464 million US Dollar, while Pakistan's exports to France figured around 362 million US Dollar during the year 2007. These figures clearly indicate that both the countries were not benefiting considerably in each other's respective markets, he said.

He said that traditionally, Pakistan and France had shared cordial diplomatic and economic ties. Both the countries had shared common perception on major issues related to international and regional peace and security. The French multinationals had been able to find the favourable environment for long-term investment in Pakistan.

Brand names like Total, Alcatel and LU have found acceptance in the Pakistani market on the basis of the strength of their products. Apart from these, there were several French firms engaged in the field of electrical equipment, oil and gas, rural telephony, civil engineering and defence, he added.


----------



## Neo

*Remittances hit $7.8bn record high in 2008-09 ​* 
Saturday, July 11, 2009

KARACHI: Pakistanis living abroad sent home a record $7.811 billion during financial year 2008-09, beating the previous high of $6.451bn transferred a year before, the State Bank of Pakistan (SBP) said on Friday.

This 21 per cent year-on-year increase in remittances translates into monthly average of $650.95 million during July-June 2008-09. The monthly average was $537.6m in 2007-08.

The month of June 2009 saw a substantial increase of 34 per cent in remittances as Pakistanis remitted $735.17m compared with $547.41m sent home in June 2008, the SBP said.

Most of the increase in remittances has come from the UAE, Saudi Arabia and GCC countries, which include Bahrain, Kuwait, Qatar and Oman, where a large number of Pakistani unskilled workers are employed.

Though highest remittances of $1.735bn came from the US, they were down from the previous years $1.762bn. Inflow from the UAE, Saudi Arabia and GCC countries jumped to $1.688m, $1.559m and $1.202m respectively from previous $1,090.30m, $1,251.32m and $983.39m.

The fact that remittances jump due to the inflows from the Middle Eastern region has worried analysts who cite growing number of people losing jobs there. They fear that this increase might be a reflection of jobless Pakistanis transferring their properties before heading back.

Remittances received from the UK and the EU also increased to $605.69m and $247.66m from last years $458.87m and $176.64mn, respectively. Pakistanis in Norway, Switzerland, Australia, Canada, Japan and other countries sent $771.03m in fiscal 2009 against $726.29m in fiscal 2008.


----------



## 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).


----------



## Neo

*KSE gains 72 points on investment-friendly news ​* 
Saturday, July 11, 2009

KARACHI: Investment friendly news invited fresh funds on Karachi bourse on Friday.

The benchmark KSE 100-sjhare Index breached through the 7,500 points resistance level on gain of 72.65 points or 0.98 per cent and closed at 7,502.66 points. The 30-Index surged by 75.50 points or 0.95 per cent and concluded at 8.032.06 points.

Analysts said the news about introduction of two modified leverage products - one for futures contract and other for ready boards - helped trigger across the board buying on the bourse. The strong expectations of interest rate cut in days ahead; clearance of the issue on oil pricing and restoration of country foreign exchange reserves to 14-month high of over $12 billion altogether invited buyers to accumulate shares across the board.

The turnover shrank by 13.4 per cent to 124.8 million shares as compared to 144.1 million shares yesterday. Future market, as usual, remained stagnant with zero shares turnover in this session too.

Front line stocks attracted fresh funds but not aggressive buying like yesterday. Investors were more interested in tier two stocks.

Rise in share prices, on the other hand, inflated the overall market capitalisation by Rs14 billion to stand at Rs2,209 billion. This is included an inflow of Rs38.2 million (or $471 thousand) from overseas investors, according to NCCPL.

OGDC alone included 22.50 points in the benchmark 100-Index, while Pak Petroleum added another 7.84 points. The other notable gainers contributed points in the said index below four points each.

Expansion plan announced by Azgard Nine by getting their sponsor holding of fertilizer sector enlisted, highlighted the stock both on gains and turnover, while another stock Pace Pakistan managed to stay the volume leader for second consecutive session. Both the stocks contributed 25 per cent to the total turnover. Day end activity by the regular players taking full advantage of cost lowering on the positive whispers regarding an early introduction of leverage allowed market to move upside, said Hasnain A. Ali at Aziz Fidahusein.

After discounting negative repercussions of carbon tax suspension on economy and different sectors, positive sentiment at KSE finally restored and index successfully stayed above psychological level of 7,500 points.

This bullish rally can be attributed to the news of reinitiating of deliverable future, which was so intensely desired by participant along with ready market leverage source margin financing, said Kashif Mustafa at Crosby Securities.

Reduction in Karachi Inter Bank Offered Rates (KIBOR) and inflation along with appreciation in foreign reserve and expected cut of around 200 basis points in policy rate, are also reasons of making short to medium term scenario promising for the market participants, he added.

Out of total 292 actives, 164 stocks advanced, 107 stocks declined, the value of remaining 21 stocks closed unchanged.

Highest volumes were witnessed in Pace (Pak) at 16.7 million closing at Rs6.60 with a gain of nine paisa, followed by DG Khan Cement at 10.9 million closing at Rs30.82 with a gain of 82 paisa, JS Company at 9.8 million closing at Rs26.11 with a gain of 73 paisa, Azgard Nine at 9.5 million closing at Rs26.64 with a gain of Rs1.26, and Engro Polymer at 6.9 million closing at Rs21.64 with a gain of Rs1.03.


----------



## Neo

*Pak-Lanka trade rises by 80pc ​* 
Saturday, July 11, 2009

KARACHI: Trade volume between Sri Lanka and Pakistan has increased by 80 per cent since 2002 after both the countries sealed the Free Trade Agreement (FTA), said VS Sidath Kumar, Consul General of Sri Lanka. 

Sri Lankan exports to Pakistan have risen to $78 million from $39 million and exports of Pakistan to Sri Lanka have jumped to $192 million from $107 million, he said. 

He was speaking to the businessmen in a meeting at the Karachi Chamber of Commerce and Industry (KCCI) on Friday. At present, the trade between the countries covered about 4,600 products and there is a dire need to increase the number of products, he stressed. 

He said Sri Lanka may act as a gateway for Pakistani exporters who face problems in exports to India and suggested to them to take the benefit of FTA and export to India via Sri Lanka. The business people said both the sides enjoy cordial relations in all sectors and this could also help boost their cooperation in trade and tourism. 

KCCI President Anjum Nisar stressed the need of identifying potential sectors and products so the two countries could deploy the FTA. 

He appreciated efforts of the consul general in inviting Sri lankan businessmen to My Karachi 2009 Exhibition and his overall services in building relations between the countries. 

Even in the presence of the FTA the bilateral trade between Sri lanka and Pakistan has not risen, and this is high time to gear up the efforts in order to bolster up it, Nisar said. The countries can boost their trade by supporting each other as Pakistan is the gateway to Central Asian states while Sri lanka enjoyed duty-free access to European and Indian markets.


----------



## Neo

*Orders worth millions expected at Canadian expo ​* 
Saturday, July 11, 2009

KARACHI: The launch of a bilateral trade event in Toronto, the Canada-Pakistan Trade Expo, is believed to begin a new era of trade and cooperation between the two countries.

The exhibition, which is the first of its kind, started on July 8 and would end on July 12. Trade Development Authority of Pakistan Chief Executive Mohibullah Shah and Federation of Pakistan Chambers of Commerce and Industry President Sultan Ahmad Chawla jointly inaugurated the exhibition at the Congress Centre of Toronto the other day, according to a statement issued by the FPCCI on Friday.

This is the first-ever bilateral trade event in the continent, which is devoted to Pakistani exporters and manufacturers to help them make inroads into the Canadian market and explore its potential to the maximum extent, the statement said.

Addressing the inaugural ceremony, Gerry Philip, Chair of Cabinet in the Canadian Ministry, stressed the need of organising such events and exchange of trade delegations between the two countries.

Pakistani community is playing an important role in promotion of economic and friendly relations between the two countries, he added.

About 124,730 Pakistanis are living in Canada, who would like to see their home products in Canada, an exporter commented.

The exhibition, which is being held with the support of the Pakistan Consulate General, has more than 70 stalls of different Pakistan-made products. The attractive displays are inviting Canadian buyers and visitors, who are expected to place millions of dollars worth of import orders.


----------



## Neo

*Share of commodity producing sectors in GDP declining​*
ISLAMABAD: The Federal Bureau of Statistics has released the contribution of different sectors in the Gross Domestic Product (GDP) of the country which show that the share of commodity producing sectors-agriculture, industrial electricity, gas-in the GDP has declined from 47 percent in 2007-08 to 46.2 percent in last fiscal year 2008-09. 

The share of industrial sector in the GDP has declined from 25.7 percent in 2007-08 to 24.3 percent and due to the better performance of the agriculture sector; the share of agriculture in GDP has increased from 21.3 percent to 21.8 percent, according to the latest position of different sectors in GDP developed by Federal Bureau of Statistics. 

Growth in commodity producing sectors is vital as growth in this sector creates new job opportunities in the country. Decline in the share of commodity producing sectors in GDP results in joblessness and unemployment in the country. The decline in this sector has made hundreds of thousands of laborers jobless. The prime focus of the government is to enable the commodity producing sector increase its growth rate in 2009-10 and create new job opportunities in the country, explained an official at Planning Commission. 

The export-oriented industrial sector was witnessed harsh times both due to domestic structural constraints like power and gas shortage. The international scenario does not bodes well for this vital sector as the financial crisis has jolted the economies of EU and US, which are the major demand drivers of Pakistan's export-oriented industries.

Industrial Sector: This sector's contribution in GDP was 23.3 percent in 1999-2000, which increased to 26.3 percent in 2004-05. However, due to the persistent power shortages and other factors its share declined to 25.7 percent in 2007-08 and further decreased to 24.3 percent in 2008-09. 

Within the industrial sector the share of mining and quarrying in GDP that was 2.6 percent in 2007-08 declined to 2.5 percent in 2008-09. Similarly, share of manufacturing declined by 1 percentage point from 19.2 percent to 18.2 percent of the GDP due to the power, gas shortages and other factors in 2008-09. 

Large Scale Manufacturing (LSM) contributions in GDP were recorded at 13.4 percent in 2007-08, which declined to 12.1 percent of the GDP in 2008-09. Small-scale manufacturing and household share has increased from 4.4 percent of the GDP to 4.7 percent of the GDP in 2008-09. Slaughtering was contributing 1.3 percent in GDP in 2007-08 has now increased its share to 1.4 percent of the GDP in 2008-09. Construction sector's share, which is known as major facilitator of 26 allied industries, in GDP has decreased from 2.4 percent of the GDP to 2.1 percent of the GDP in 2008-09. The share of electricity, gas and water supply in the GDP have declined from 1.6 percent of the GDP in 2007-08 to 1.5 percent of the GDP in last fiscal year 2008-09. 

Agriculture Sector: The contributions of agriculture sector in GDP were 25.9 percent in fiscal year 1999-2000 that declined to 21.3 percent in the previous fiscal year 2007-08, however, due to the better performance of sector as a whole, its share has risen again to 21.8 percent. 

Within the agriculture sector crops share have increased from 9.5 percent to 9.9 percent due to the batter performance of wheat crop. Share of major crops have increased from 6.9 percent to 7.3 percent and share of minor crops have remained stagnant at 2.6 percent in last fiscal as compared with previous fiscal year. Overall share of livestock have witnessed an increase and moved from 11.1 percent of the GDP to 11.3 percent of the GDP in 2008-09. Shares of fisheries and forestry in GDP have been estimated at same level at 0.4 percent and 0.2 percent of the GDP by the end of 2008-09. 

Services Sectors: The share of services sector, which was 50.7 percent of the GDP in 1999-2000, has increased to 53 percent in 2007-08 and further increased to 53.8 percent in 2008-09 owing to dull performance of industrial sector. The contributions of transports and communication in GDP were 10.2 percent in 2007-08 have increased to 10.3 percent, share of wholesales and retail trade has also increased from 17.23 percent to 17.5 percent, share of finance and insurance declined from 6.4 percent to 6.2 percent, ownership of dwelling's share in GDP remained at 2.7 percent, public administration and defence increased its share in GDP from 5.9 percent to 6.1 percent of the GDP and social, community and public services share in GDP has also increased from 10.6 percent to 11.1 percent by the end of 2008-09.


----------



## Neo

*First-ever industrial policy in a couple of months: Wattoo ​*
ISLAMABAD: The government is working on a first-ever comprehensive industrial policy for the promotion of industrial sector. 

Federal Minister for Industries and Production Mian Manzoor Ahmed Wattoo on Friday said this while addressing the business community at the Islamabad Chamber of Commerce and Industry (ICCI).

The minister said the policy would be formulated in consultation with all stakeholders accommodating their views and suggestions. 

He said the policy to be announced in a couple of months was initiated after a long time, to help promote industrial sector of the country. The minister also announced to set up a Marble City in Islamabad in collaboration with PASDEC promote local marble industry. He said the government was according priority to the SMEs sector as it was an engine of growth and a key source for job creation. Wattoo said the Small and Medium Enterprise Development Authority would be made more efficient to accelerate the pace of development of the SMEs.


----------



## Neo

*The beginning of the end?: Record $7.8bn remittances: what next?​*
KARACHI: State Bank of Pakistan proudly announced on Friday that Pakistan received the highest-ever amount of over $7.811 billion as workers' remittances in 2008-09, beating the previous record of $6.451 billion of 2007-08. 

Remittances have been rising for past several years, but this year's increase has rung alarm bells in the country. People have expressed fears that Pakistanis working abroad might return home in large numbers owing to the recessionary conditions in developed countries, particularly the US. Also, people who had been working in UAE's construction industry are coming back owing to the slump experienced by the real estate sector there. 

In this scenario, flow of money from abroad is likely to go down this year, which will be a difficult situation for the government in Pakistan to manage. Successive governments have relied heavily on remittances to meet trade and current account deficits during the last seven years. 

The money sent by overseas Pakistanis used to be invested either in real estate or in some business, which would boost country's gross domestic product. Now the economy of the country will also lose this investment. The return of overseas Pakistanis will be a huge setback to the country's economy also because the large number of people coming back home will look for jobs and put immense pressure on a job market where already there are hundreds of candidates for every new job opening. The jobless rate will rise sharply and could lead to social unrest. 

In FY09, workers' remittances showed an increase of 21.08 percent, or $1.36 billion, when compared with FY08. The monthly average remittances during the year stood at $650.95 million as compared with $537.60 million in 2007-08.

The inflow of remittances from USA, UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1.735 billion, $1.688 billion, $1.559 billion, $1.202 billion, $605.69 million and $247.66 million, respectively, compared with $1.762 billion, $1.090 billion, $1.251 billion, $983.39 million, $458.87 million and $176.64 million. 

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during FY09 amounted to $771.03 million as against $726.29 million in FY08. 

In June 2009, Pakistani workers remitted an amount of $735.17 million, up $187.76 million or 34.30 percent when compared with $547.41 million sent home in June 2008. The amount remitted in June 2009 is the second-highest received in one month, following $739.43 million sent home in March 2009. 

The inflow of remittances into Pakistan from most of the countries of the world increased last month as compared to June 2008. According to the break up, remittances from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries stood $164.70 million, $154.39 million, $152.33 million, $108.11 million, $68.48 million and $22.95 million, respectively, compared with $88.29 million, $143.57 million, $123.67 million, $90.98 million, $38.08 million and $13.98 million in the same month of last year. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during June 2009 stood at $64.19 million compared with $48.80 million during June 2008. The amount of $7.811 billion includes $0.48 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).


----------



## Neo

*Exhibitions to be held in Canada annually​*
KARACHI: Single country exhibition in Canada will be an annual feature, announced Chief Executive Trade Development Authority of Pakistan (TDAP) Syed Mohibullah Shah.

Shah announced it in a meeting with Deputy Minister, International Trade and Investment, Ontario, Canada, Dr Bruce A Archibald, a statement of TDAP said on Friday.

They discussed means to strengthen and extend bilateral trade between Pakistan and Canada. The meeting took place in Toronto, Canada, during Chief Executive, TDAPs visit in connection to the four-day exhibition for Pakistani products, organised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) with the cooperation of TDAP and Pakistani Consulate General in Toronto. TDAP chief emphasised that the trade relations between the two countries should be extended through frequent exchange of trade delegations and investment in the potential export sector of Pakistan. He invited sectoral trade delegation from Canada to Pakistan, and the Canadian businessmen and traders, to attend the Expo 2009. 

While discussing the various export potential sectors of Pakistan, Shah informed that the Canadian businessmen should expand trade in agro-products through investment and technological cooperation. Pakistan telecommunication sector was also highlighted for Canadian investment and expertise. The TDAP chief also pointed out that the paper industry of Pakistan could benefit largely from the art of technological cooperation and investment of Canadian paper industry.


----------



## Neo

*US House approves $1.5 billion aid for Pakistan ​*
WASHINGTON (July 11 2009): The US House of Representatives on Thursday approved a $48.8 billion spending bill to bolster US foreign policy and aid efforts, including to allies like Pakistan and Afghanistan. The legislation includes $2.7 billion in foreign aid for Afghanistan and $1.5 billion for Pakistan as they fight Taliban militants.

It also provides $2.2 billion for Israel, another close US ally, for the fiscal year 2010 that starts October 1. The legislation is $3 billion less than the $52 billion requested by President Barack Obama, with cuts in funds for items such as overseas diplomatic operations and money for agricultural assistance and improved food security.

The House bill, approved 318-106, also took a shot at Obama for trying to avoid close congressional oversight of his administration's actions at the International Monetary Fund, which aims to help countries weather the financial crisis. But with the Senate also working on its version, the legislation is likely to change before becoming law.

The Senate Appropriations Committee approved its own $48.7 billion variant of the bill and included a provision to codify into law Obama's order lifting restrictions on US government funding for groups that provide abortion services or counselling abroad.

The panel voted 17-11 to include such language despite protests by Republicans like Sam Brownback who warned it would spark a huge fight on the floor, particularly since Obama's order already set US government policy.

The Senate bill also includes $1.57 billion in aid for Pakistan and $2.7 billion for Afghanistan, though the latter drew concern from Republican Senator Judd Gregg. "We need to watch that money very closely" to ensure it is not wasted. The Senate committee also struck $15 million for the US television service it beams into Cuba, known as TV Marti, after Democratic Senator Byron Dorgan said the signal was jammed by the Communist government so no one there could see it. Differences between the House and Senate bills will have to be resolved before it can become law.

HOUSE TARGETS OBAMA OVER IMF The House, furious at Obama's attempt to avoid congressional influence over administration actions at the IMF, approved an amendment aimed at exerting more control. Obama drew ire from some lawmakers after he said a previous law Congress passed that provided instructions for the administration's interactions with the IMF would "interfere with my constitutional authority to conduct foreign relations."

House Financial Services Committee Chairman Barney Frank said he had worked hard to get funding approved for the IMF. "The notion that the administration can take the money and pick and choose what it wants to do with the conditions (placed on it) is unacceptable," Frank declared.

Last month, Congress approved $108 billion in credit lines for the IMF as it helps countries with the economic crisis. The current House legislation includes guidance about how the US representative to the IMF and World Bank should vote on issues like health care. It also requires the US representative to the IMF to oppose allowing countries that have supported acts of terrorism to withdraw hard currency like US dollars, Japanese yen or euros from the IMF.

"I think we can all agree that now more than ever we need to keep a watchful eye on how we spend money," said Republican Representative Kay Granger, who authored the IMF provisions. The administration has opposed the IMF restrictions. The House also approved an amendment removing the president's ability to waive a provision blocking aid for Saudi Arabia. "We want to tie the president's hands," said the provision's Democratic sponsor, Anthony Weiner of New York.


----------



## Neo

*Charade in industrial sector ​* 
ARTICLE (July 11 2009): The economic survey tells it all. The growth rate in industry has fallen and gone negative. Is it the power shortages or the cost of doing business that has gone sky high? Maybe these are not the reasons after all. Economics does not take into consideration any thing that has to do with human behaviour. So what reason can one attribute to this charade that is going on in the industrial sector?

A friend enquired as to what was the function of the Industrial sector. Rather than giving him a straight answer I stated that the reason seems to be in the realm of human appreciation of the continuous efforts that are required from the entrepreneur and the ability to save when the going is good and to be able to take the losses when the going is difficult as when recession hits the economy.

The issues in industry are such that they require massive re-engineering. Re-engineering not only the hardware [machinery] but also software indicated by not only management but also movements in the international markets. The industrial sector is the lead sector for bringing in harmony so far as capitalism is concerned.

That the players are selfish goes without saying. In majority of the cases the industrial sector is forever seeking government intervention on their behalf. One deputy governor of the state bank stated that had the amount provided to these entrepreneurs been placed in a safe deposit the amount earned would have been colossal.

What was the basis for the entrepreneur's selection? Power and authority seems to be the basis for becoming a risk taker. There is no such thing as a risk taker in Pakistan. Industrial bankruptcies are due to management and in house fighting and are seldom attributed to bad faith that might be conjured by either party. Market is not involved at all.

There is considerable amount of bad faith between the ministry and the private sector for the way in which we are organised. The powerful entrepreneur gets rich while the industrial unit falls in to disarray, yet the number of bankruptcies is negligible. An indication of this is that the numbers of units that are not operating are still with the owners. Government policies formulated on the basis of lobbying groups is really based on a kind of blackmail if you do not do this the fall out will be terrible for the economy. The heavens will fall.

This is particularly true of the textile industry. But any industry that becomes a monopoly or cartel is dependent on this kind of thinking get whatever you can from the country and that's it. There is no accountability of the amount that is thus provided.

Industry is related to trade and developing countries are like most of such countries dependent on the few for the amount of foreign exchange that can be obtained for macroeconomics to work. The link to markets is important for the developing countries but over the years the proponents of the free market have also been guilty of protectionism. Ricardo's comparative advantage takes a nosedive. The rationality to this is that the developed countries losing rare jobs to developing countries hoards that are not paid enough and whose human rights records are despicable. In comes, welfare and a bit of politics to subvert all the policies and theories of the economists.

The problem has been with the entrepreneurs in Pakistan as they were not a product of market forces but were the product of contentious collaborative and connective friendship between the powerful and the government. In fact as the 'licenses' to operate a new industrial establishment was provided the seeds of collaboration between the licensee and license giver was established. Licenses are paper authorities for setting up a new industry.

In there urgency to develop quickly all that the developing country  was told was that the route to development is through industry and many a developing country have fallen prey to this kind of thinking. The unholy alliance comes to the fore and the WB and the ADB provide the justifications. They do so on behalf of the developed world because of the sale of demand side [machinery] also seems to be the responsibility of these international agencies. In the process they have misallocated resources in the name of the development when in actual fact they have messed up the economic stability of the countries.

Given the kind of actions required what kinds of entrepreneurs are required in an economy? What kinds of people are needed as entrepreneurs? It was the French economist Frank Knight that mentioned entrepreneurs as possible risk takers. That was supposed to be their quality requirement. The market was supposed to fix the poor performers but that has not happened. What is going to happen if the world is not going to operate on the basis of a free market? Nothing much the world's markets will ensure that all limp together towards a subsistence economy. There are no winners in this kind of a game.

For sure there are some who are able to get away with it but policies determined on the basis of some invidious policy framework will never deliver. We have seen this in the case of the recent recession and the perpetual lies and cleverness has been the result of the meltdown that has taken place in the West. The world's largest and most developed economies were tottering and were on the brink of collapse. Why not allow the market to take charge? At that time it takes a lot of heavy effort to follow principles advocated by the economist entirely from the West. One has come to think very dimly of these policies.

Men of caliber seldom come easy and yet they are necessary in a system. They are the ones that give rise to a fighting spirit that is so necessary in the system. They cannot be made of sugar and candy and must have their baptism by fire. The market place is a tough one for the one's that do not apply themselves and therefore, is a very tough place to play.

The market can and does take away supercilious work and looks for depth and excellence. This game is not for the easy going. Yet the policies that have been advocated are in the realm of more ego orientation rather than work oriented. The textile ministries, the textile city created as wishful thinking have nothing common with the markets of the world.

Governments in succumbing to ego-oriented cries from the industry have not been able to develop the culture that goes with the Silicon Valley or the science cities of the world. The prevalent culture in these cities were for the entrepreneur to try their skills and their mental attributes for the continuous friction in world markets and to come up ahead of the pack. Such mental attributes are not developed in a protected markets but where the abilities of one are matched with those of the competitors.

In these times of turbulence Pakistan does not want midgets but men that match Mt. Everest and claim to be akin to the Himalayan range. Can Pakistan produce these much wanted men? It can. The effort has to be made for them to stand on their feet. For creativity to come to Pakistan the effort has to be towards the ability to go for the objectives in a more determined manner and do it without any props. It is possible. No exceptions are what are required for a way of life in the country. Do it and we are well on the way. Men who match our mountains? Yes!


----------



## Neo

*Thar coal project​*
EDITORIAL (July 10 2009): The Sindh government and Engro Chemicals Limited have agreed to form a joint venture for the development of Thar coal mining and power generation. The proposal to develop Thar coal for power generation, with reserves estimated at 850 trillion cubic feet (TCF) of gas, about 30 times higher than Pakistan's proven gas reserves of 28 TCF, has been touted for the past forty years.

Unlike Kalabagh dam where there is no provincial consensus, Thar coal project has been held hostage to lack of investment, attributed to stringent environment protection safeguards that barred bilaterals and multilaterals from investing in coal mining projects, to lack of an agreement on tariff between NEPRA and the Sindh Government.

The federal government abolished the Sindh Coal Authority to end the row over the tariff issue and has formed Thar Coal Authority, with the objective of attracting investment for the project estimated at 4 billion dollars in a phased manner - an estimate released by the former Deputy Chairman Planning Commission Akram Sheikh. Chief Minister Sindh is the Chairman of the authority while the Vice Chairman is Federal Minister for Water and Power and Deputy Chairman Planning Commission is its Deputy Chairman.

A genuine attempt on the part of the federal government to resolve all issues pertaining to Thar coal mining and power generation project is evident. Given the massive loadshedding that the country is currently experiencing, and the expected delay for the operation of the Iran-Pakistan gas pipeline, there is an urgent need to explore domestic energy sources. In the absence of other viable options coal seems to be the obvious way to go.


----------



## Neo

*Rice export tops $2bn ​* 
Sunday, July 12, 2009

KARACHI: Pakistans rice export crossed the value of $2 billion in FY08-9 for the second consecutive year. 

According to details revealed by QRC Rice Inspection Cell, Pakistan total export from July 1 to June 30, 2009 recorded 2.930 million tons with non-basmati rice export of 2.005 million tons and basmati 0.924 million tons. 

Total value of export recorded at $2.044 billion with basmati as well as non-basmati each had a share of over one billion dollars. 

Rice Exporters Association of Pakistan (REAP) Chairman Abdul Rahim Janoo described the export a success for Pakistani exporters amid international recession and competition among the other countries that produced the bumper crop. 

He said when time was difficult for the exporters when the government intervention had increased the prices locally but exporters focused on competition and achieved the mileage. 

Last year too, Pakistan had crossed the export of $2 billion. 

Currently, Pakistan has a stock of over 3.5 million tons for export out of last years bumper crop of 6.2 million tons. 

Janoo said if the government support remained with the exporters, they would cross these figures in the current fiscal year, as Pakistan had more rice available this year. 

Rice Exporters Association of Pakistan chairman said quality of Pakistani rice has improved as more than 200 modern mills were processing the grain.


----------



## Neo

*IMF links release of $840m with power subsidy ​*
** 2nd round of talks with WB, ADB on circular debt, power sector to start tomorrow 
* Islamabad wants power tariff increase in 3 phases​*
ISLAMABAD: The International Monetary Fund (IMF) on Saturday linked the release of a third instalment of $840 million to Pakistan with Islamabads economic performance and a proposed increase in its power tariff.

A Finance Ministry statement issued at the conclusion of the Pak-IMF talks in Istanbul said the Pakistani delegation led by Adviser to Prime Minister on Finance Shaukat Tareen had successfully completed the first round of talks concerning the establishment of a standby facility in Istanbul. The second leg of talks with the World Bank (WB) and the Asian Development Bank (ADB), concerning improvement in the power sector and the countrys circular debt, would start in Islamabad from July 13, it added. According to the statement, the IMF programme review at these official-level talks would be completed after requisite inputs from the WB and the ADB. The WB and the ADB are financing power sector reforms in Pakistan, and therefore their input on the withdrawal of power subsidy and increase in power tariff would be the main point of discussion, sources said.

They said the IMF had expressed willingness to allow a one-time waiver to Pakistan, extending the time limit for withdrawal of the power subsidy until load shedding had been eliminated from the country. However, the IMF authorities said any additional expenditure should be dealt with through rationalisation of pre-approved expenses in the 2009-10 budget to ensure the deficit was maintained at a pre-approved value.

Three-phased: The WB has calculated that Pakistan needs to raise the power tariff by 23 percent, however Islamabads economic managers claim a 17.5 percent increase would be sufficient. Pakistani authorities are also proposing a three-phased increase in the power tariff, rather than a one-time boost.

According to rough estimates, the budget deficit would increase by Rs 66 billion if the power tariff were maintained at the present level. Some analysts have claimed the government would increase the power tariff from October, as the power consumption will decrease with the end of summer.

Official sources said the IMF authorities were not concerned about the removal of the carbon surcharge, adding they had been satisfied with the governments initiatives following the interim order of the Supreme Court. However, they added, the IMF was not satisfied with revenue collection in 2008-09, adding they wanted Islamabad to increase the revenue collection target in the 2009-10 budget.


----------



## Neo

*Rs 90bn paid to IPPs, load shedding to reduce soon​*
LAHORE: The government has paid more than Rs 90 billion of the outstanding amount owed to independent power producers (IPPs) and load shedding will reduce soon, Water and Power Minister Raja Pervaiz Ashraf said on Saturday. Addressing a joint press conference with Punjab Chief Minister Shahbaz Sharif, Ashraf said the previous government had owed more than Rs 190 billion to the IPPs, which had forced the power producers to cease electricity generation, resulting in severe load shedding.


----------



## Neo

*Rupee may fall further as banks start financing oil imports from Aug​*Tuesday, July 14, 2009
By Saad Hasan

KARACHI: Rupee did not lose a significant ground against the dollar on Monday but anticipation of an increase in demand for the US currency from August when commercial banks start financing oil imports is keeping up pressure on the exchange rate, analysts said.

Pakistani rupee shed 11 paisa to close at Rs82.41 to a dollar in the inter-bank market, which is gearing up to start making payments to oil refineries and petroleum marketing companies for crude oil and diesel imports, a task currently assigned to the central bank, they said. Expectation of a cut in the State Bank of Pakistans discount rate, at which it lends to commercial banks, is also fueling a rush for the dollar. Savings rates are already low and it is reasonable to invest in the dollar, an analyst said.

Analysts also point out that rupee depreciation means that rising foreign exchange reserves of the SBP are not helping to boost perception of the economic stability. Last year, the rupee fell steeply when the countrys foreign exchange reserves dropped to less than half of the current level of over $12 billion.

That proved devastating for many companies depending on revenues in dollars and imports. The national airline, oil refineries and petroleum marketing companies were battered as rupee cost of imports surged out of control. Industry people say the transfer of oil payments to commercial banks will not change anything.

We are still not allowed forward cover, a CEO of a refinery said, referring to the bar on hedging against future currency fluctuation. So I dont see any difference. A few days back, the rupee was trading at under Rs81.50.

---------- Post added at 01:04 PM ---------- Previous post was at 01:03 PM ----------

*Govt to minimise effects of energy crisis on industry​*Tuesday, July 14, 2009

LAHORE: Adviser to Prime Minister on Petroleum Dr Asim has said that the government is using all options at its disposal to minimize the effects of energy crisis on the industry, especially the export industry.

He was speaking at a briefing on APTMA and winter load management at the Sui Northern Gas Pipelines Ltd (SNGPL) head office here on Monday. SNGPL MD Rashid Lone, All Pakistan Textile Mills Association (APTMA) Chairman Tariq Mehmood and other senior representatives of both the organisations were present.

The SNGPL managing director said that there is a ban on new CNG connections from July 1. The adviser said that SNGPL must help the textile industry during the worst energy crisis. To criticise the government for the sake of criticism is of no use as there is a need of presenting solutions to the issues and workable options for moving ahead, he said.

Dr Asim said During winter when gas demand rises we cannot cut gas supply to the domestic consumers or CNG stations and at the same time connections of industry as we can not render our workers jobless.

We have to work within a limited parameters and that is the reason every one will have to share the burden in this regard, he added. Dr Asim assured of sparing time for having regular interaction with All Pakistan Textile Mills Association either on weekly basis at Islamabad or monthly basis at Lahore as per choice of All Pakistan Textile Mills Association.

He said that such an interaction would help find out solutions of the issues and understand each other viewpoints. There is a huge shortfall in demand and supply of energy sources in the country, he said adding the solution lies in importing LPG etc and maximum exploration of indigenous resources in the country.

Chairman All Pakistan Textile Mills Association said that the textile industry has to face a loss of one billion dollar every year due to energy crisis and the country can get such a big amount of foreign exchange by meeting energy demand of the textile industry. Losing one export order means losing many customers forever, he said.


----------



## Neo

*Countrys exports target missed by $4.319 billion​*
ISLAMABAD: The government has again missed exports target by a wide margin of $4.319 billion as the countrys exports managed to reach only $17.781 billion against the target of $22.1 billion set for the last fiscal year 2008-09.

At the time of the announcement of the Trade Policy 2008 it was targeted that countrys exports would grow by 15 percent in 2008-09, however, due to number of difficulties and issues the exports have actually registered a negative growth of 6.67 percentage during July-June period.

Similarly, the downward revised export target of $19.2 billion has also been missed and countrys exports fell short by $1.419 billion with total exports at $17.781 billion in last fiscal year 2008-09 ended on June 30.

July-June: According to the trade figures released by Federal Bureau of Statistics (FBS) countrys exports were $17.781 billion as compared with the $19.052 billion exports recorded in the last fiscal year 2007-08 showing a decline of 6.67 percentage.

Due to the import restrictive regime introduced by the economic managers, the imports of the country witnessed a decline of 12.87 percent with total imports at $34.822 billion in 2008-09 as compared with imports at $39.965 billion in the previous fiscal year 2007-08. Trade deficit during 2008-09 amounted to $17.040 billion as compared with trade deficit of $20.913 billion in 2007-08, showing a decline of 18.52 percent.

June over June: Pakistans exports during June 2009 amounted to $1.537 billion as against the exports of $1.908 billion in June 2008 projecting a decrease of 19.43 percentage. Imports of the country were recorded at $3.339 billion in June 2009 as compared with $4.023 billion imports in June 2008 showing a decrease of 17.01 percentage. Trade deficit during June 2009 stood at $1.801 billion as compared with trade deficit of $2.115 billion in June 2008 projecting a decline of 14.83 percent.

June over May: Exports of the country during the month of June showed a negligible increase of 2.52 percentage with total imports at $1.537 billion as compared with exports of $1.499 billion in May 2009. Import in the month of June 2009 showed a sudden increase of 30.37 percent with total imports at $3.339 billion as against the imports of $2.561 billion in May 2009. Trade deficit during June 2009 as compared with May 2009 increased by 69.72 percent with total deficit at $1.801 billion in June 2009 as against deficit of $1.061 billion in May 2009.

Concentration of exports: According to the economic survey 2008-09, the export growth is hindered because of lack of diversification in export goods. The trend of Pakistans export remained more or less same having concentrated on five items namely cotton manufactures, leather, rice, synthetic textile and sports goods. These five categories accounts for 73.5 percent of total exports during July-March 2008-09. Within these few items cotton manufactures remain major contributor in total exports. The exports structure suggests that the intensity of concentration is changing slowly. The share of exports of other item was 17.4 percent in 2002-03, which has now increased to 26.5 percent of total exports during July-March 2008-09. Likewise, more recently, the share of rice and cotton manufactures contributed 11.3 percent and 53.3 percent in total exports, respectively during July-March 2008-09.


----------



## Neo

*$840m IMF loan tranche further delayed​**
* IMF executive board talks to review Pakistans performance scheduled for August​*
ISLAMABAD: The release of the next instalment of $840 million  part of a $7.6 billion International Monetary Fund (IMF) standby arrangement (SBA)  to Pakistan has been further delayed, with a meeting of the IMF executive board, which would review the release, scheduled for August 7.

Earlier, the IMF was supposed to release the $840 million to Pakistan during June, but as a result of the delay in the announcement of the federal budget, the date for an IMF review was also extended, which in turn deferred the payment.

Finance Secretary Salman Siddique told reporters that the IMF executive board was to meet on August 7 in Washington to review Pakistans economic performance and budget initiatives, for a decision on the release of the next tranche.

The finance secretary also said that the IMF, during talks in Istanbul, had agreed to allow Pakistan to provide a power tariff subsidy of Rs 55 billion during 2009-10. He said the government would be required to rationalise its expenditures to adjust the additional spending of Rs 55 billion.

He said the World Bank (WB) and the Asian Development Bank (ADB) were the major financers of the power sector reforms, and we have some commitments with them  technical level talks are underway with authorities of both institutions. The second leg of the talks between the Finance Ministry and the two institutions began on Monday, and is expected to conclude today (Tuesday).

Hina Rabbani Khar  minister of state for finance and revenue  told reporters that the government might consider the termination of gas supply to CNG stations, and divert the available gas to power generation, as furnace oil prices are on the higher side.

According to the official sources, WB and ADB are demanding that the government recover the full cost from consumers to bridge PEPCOs income-expenditure gap.

---------- Post added at 01:18 PM ---------- Previous post was at 01:16 PM ----------

*Pakistan and Canada trade exposition attracts huge crowd​*
KARACHI (July 14 2009): President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Sultan Ahmed Chawla and other members of Pakistan trade delegation, led by Chief Executive of Trade Development Authority of Pakistan (TDAP) Mohibullah Shah called on Chief Executive Officer of the Brampton Board of Trade of Canada, Gary Collins.

Gary Collins expressed his confidence that the Canada Pakistan Trade Expo will prove to be a turning point in promotion of bilateral trade relations and restoring the confidence of Canadian buyers. He suggested that Canadian market can be exploited by organising such events with continuity, said FPCCI statement issued here on Monday.

President FPCCI Sultan Ahmed Chawla invited Canadian investors to Pakistan for investment in various fields including energy sector, IT sector, cold storage, textile, garments and transfer of technology.

They informed the Chief Executive Officer about the lucrative incentives being offered by Pakistan to the foreign investors. Canada Pakistan Trade Expo indicates the interest of Pakistani exporters and manufacturers in the Canadian market. Mohibullah Shah, CEO Trade Development Authority of Pakistan announced that Canada Pakistan Trade Expo would be organised every year in Toronto providing opportunities to business communities of both the countries to come more closer.

However, he said, the Canadian businessmen have to reciprocate by arranging visit of trade delegations to Pakistan. He also extended invitation to Canadian investors to visit Pakistan Expo 2009 and offered all possible co-operation and assistance for their visit. Canada Pakistan Trade Expo witnessed heavy crowds.

A large number of Pakistani and Canadian buyers visited Expo and placed orders while retail sale was also at boom. The retail sale of Pakistani rice, bed sheets, spices, onyx leather garments was outstanding while the buyers expressed their interest in surgical items, cutlery, fruits, textile.

The expo presenting a house of Pakistani products has proved that the Pakistani products are in great demand in Canada and with consistent efforts our products will make in roads in the North American market which is hitherto unexplored.

The Expo has given a great deal of confidence to the Pakistani exporters and manufacturers that their products have great potential in this market and they have welcome the announcement of Mohibullah Shah Chief Executive of TDAP to make Canada Pakistan Trade Expo a annual event. The tourism material of Pakistan display in the Expo also attracted the Canadian people. CDs on Pakistan tourism were distributed to Canadian people free of charge.

---------- Post added at 01:20 PM ---------- Previous post was at 01:18 PM ----------

*'Pakistan should ask India to provide transit trade route'​* 
ISLAMABAD (July 14 2009): Pakistan should ask India to provide her the facility for transit trade with Bangladesh, Nepal and Bhutan, as Pakistan has agreed to provide India similar relaxation regarding trade with Afghanistan, said Mushahid Hassain Sayed.

Talking to Business Recorder here on Monday, after conclusion of a seminar on the issue of "Pakistan-American Relations" under the auspices of Centre for Research of Security Studies (CRSS) he said that it was need of the hour to pursue India to provide Pakistan route of trade with these countries.

He said that Prime Minister Yousaf Raza Gilani must urge Indian premier Manmohan Singh during his meeting on the sidelines of Sharm-el-Sheikh summit of Non-Aligned Movement (NAM) to resolve all the outstanding issues with Pakistan through dialogue.

On a question he said that Pakistan should raise water issue with the Indian premier during the meeting as it was most important for Pakistan's agriculture. Mushahid added that the prime minister of Pakistan during the talks with the Indian premier in Sharm-el-Sheikh summit must ask India to stop human right's violations in occupied Kashmir.

He also said that conspiracies were being hatched through different channels to deprive Pakistan of its nuclear arsenal. Earlier, speaking at the seminar the speakers said that there are three elements of mistrust between the US and Pakistan and stressed United Sates must try to remove this mistrust.

They said that among the three issues, first is US track record of using, ditching and discarding an old ally (Pakistan) after achieving its goals on any important international matter.

Secondly, there always remained an 'India factor' despite the fact that India was ally of Soviet Union but US had always tilted towards India on Pakistan's expense including arms ban in 1965 war, failure to counter India-Soviet nexus in 1971, Pressler sanctions in 1990s and India-US nuclear deal in 2005, which violated both US laws and NPT. Thirdly, post 9/11 remarks of President Bush pertaining to Weapons of Mass Destruction (WMD) and campaign against ISI.

On a question why Pakistan is relying on US assistance and US dominating Pakistan's foreign policy, Mushahid said that Pakistan had achieved what was needed from US and at present US was dominating Indian foreign policy as compared to Pakistan.

Replying to a question he said that whenever USA starts romance with Pakistan there was dictatorship in Pakistan, adding that the dictators served the USA's interests in the best way as US wants only one window operation instead of democratic complications.

"For years, we had an unbalanced policy in South Asia and people are looking at it superficially and say that we have a great relationship with Pakistan, but it was a false relationship because at the first instance it was built against the India-Soviet Union nexus and latter it was against the Soviet occupation of Afghanistan," Mushahid giving the presentation at the seminar reading an excerpts from an interview of Ex US under secretary of states Richard Armitage with Indian daily the Hindu said that US was safeguarding its interests in the region long ago and Armitage gave this interview to the paper 90 days before the 9/11 incidents.

Other speakers addressing the seminar said that the Pakistani leadership was just doing nothing seriously on the issues relating to Pak-US relations. They said that the Pakistan government was even informed about the US Drone strikes inside the Pakistani territory, but the leadership was just making statements.

---------- Post added at 01:24 PM ---------- Previous post was at 01:20 PM ----------

*Pakistan and Canada trade exposition attracts huge crowd​*
KARACHI (July 14 2009): President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Sultan Ahmed Chawla and other members of Pakistan trade delegation, led by Chief Executive of Trade Development Authority of Pakistan (TDAP) Mohibullah Shah called on Chief Executive Officer of the Brampton Board of Trade of Canada, Gary Collins.

Gary Collins expressed his confidence that the Canada Pakistan Trade Expo will prove to be a turning point in promotion of bilateral trade relations and restoring the confidence of Canadian buyers. He suggested that Canadian market can be exploited by organising such events with continuity, said FPCCI statement issued here on Monday.

President FPCCI Sultan Ahmed Chawla invited Canadian investors to Pakistan for investment in various fields including energy sector, IT sector, cold storage, textile, garments and transfer of technology.

They informed the Chief Executive Officer about the lucrative incentives being offered by Pakistan to the foreign investors. Canada Pakistan Trade Expo indicates the interest of Pakistani exporters and manufacturers in the Canadian market. Mohibullah Shah, CEO Trade Development Authority of Pakistan announced that Canada Pakistan Trade Expo would be organised every year in Toronto providing opportunities to business communities of both the countries to come more closer.

However, he said, the Canadian businessmen have to reciprocate by arranging visit of trade delegations to Pakistan. He also extended invitation to Canadian investors to visit Pakistan Expo 2009 and offered all possible co-operation and assistance for their visit. Canada Pakistan Trade Expo witnessed heavy crowds.

A large number of Pakistani and Canadian buyers visited Expo and placed orders while retail sale was also at boom. The retail sale of Pakistani rice, bed sheets, spices, onyx leather garments was outstanding while the buyers expressed their interest in surgical items, cutlery, fruits, textile.

The expo presenting a house of Pakistani products has proved that the Pakistani products are in great demand in Canada and with consistent efforts our products will make in roads in the North American market which is hitherto unexplored.

The Expo has given a great deal of confidence to the Pakistani exporters and manufacturers that their products have great potential in this market and they have welcome the announcement of Mohibullah Shah Chief Executive of TDAP to make Canada Pakistan Trade Expo a annual event. The tourism material of Pakistan display in the Expo also attracted the Canadian people. CDs on Pakistan tourism were distributed to Canadian people free of charge.


----------



## Neo

*Punjab gets $45m to improve social services​*
Punjab gets $45m to improve social services
Wednesday, July 15, 2009

ISLAMABAD: Punjab, the most populous province of Pakistan, has received fresh funds worth $45 million for a programme to improve the delivery of health, education, water and sanitation services in the region, the Asian Development Bank (ADB) said on Tuesday.

According to a statement issued by ADB, its board of directors has approved release of the third tranche of the Punjab Social Services Programme.

Twenty-five million dollars come from ADBs concessional Asian Development Fund and $15 million from its ordinary capital resources. Co-financing in the form of a $5 million grant is being done by UKs Department for International Development (DFID).

First and second tranches of $80 million and $55 million were disbursed in December 2005 and November 2007 respectively.

Punjab, which contributes to more than 50 per cent of the GDP and is home to 56 per cent of the countrys population, has in the past suffered like other parts of the country from lack of social services, resulting in a high level of poverty, low level of literacy and school enrolment, and other development problems.

In a bid to improve service delivery to the poor, Punjabs government devolved responsibility for education and health to the districts, while water supply and sanitation was passed on to town municipalities. Recently, the province adopted a Medium Term Development Framework (2008-2011) to strengthen allocation of resources and promote fiscal discipline.

ADBs program, which is closely tied to the development framework, set out a challenging reform agenda for improving social services. Achievement of policy actions was linked to release of loan funds.

To date, the province has made significant progress in complying with key actions including strategic sector planning at the provincial and local government levels, establishment of minimum standards for social services, strengthening accountability and promotion of public-private partnership (PPP).

Despite facing fiscal constraints which have been exacerbated by the global economic crisis, the province has boosted per capita health spending in the public sector from FY2005 to FY2008. Reforms in the education sector have increased the number and quality of schools.

The province has also benefited from expansion of district inspection in education.

Over two million more children are in school because of these investments, with enrolment rate in middle school among females rising from 43 per cent in 2003 to 53 per cent in 2005.

The share of female enrolment in government primary and middle schools increased from 45 per cent to 50 per cent, said Linda Arthur, Social Sector Specialist at ADBs Pakistan Resident Mission.

Plans to increase and improve water supply and sanitation services are also on track, while PPP models have been drawn up, paving the way for private sector investments.

PPPs are expected to improve the quality of services, particularly for the poor, while helping to reduce the cost burden of full public service delivery, said Arthur.

The program includes a technical assistance grant of $20 million equivalent from DFID to support reforms and boost the capacity of institutions to deliver improved social services.

The executing agency for the program is the Punjab Planning and Development Department.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic and environmentally sustainable growth, and regional integration.

Established in 1966, it is owned by 67 members, 48 from the region.

In 2008, it approved $10.5 billion in loans, $811.4 million in grant projects, and technical assistance amounting to $274.5 million.


----------



## Neo

*Foreign investment takes deep plunge​*
KARACHI: Foreign direct investment in the country took a deep plunge of $1.688 billion or 31.2 percent to $3.721 billion during 2008-09. The country had received foreign direct investment worth $5.409 billion in 2007-08.

During 2008-09, foreign investors withdrew $1.053 billion they had earlier invested in Pakistans securities including government bonds, according to SBPs data. As a result, net foreign investment declined by $2.781 billion or 51 percent to $2.668 billion.

In the early part of the year, the PPP government was claiming that the decline in net foreign investment was because of a fall in portfolio investment and that the foreign direct investment was still rising. But as the year progressed, it became clear that the PPP government was also failing to attract foreign direct investment.

Economists say that the decline in foreign investment coming into the country was inevitable because the sectors that had been receiving these foreign investments have now come to a saturation point.

Dr Asad Saeed, an economist, says the wave of foreign investment seen in previous years when Shaukat Aziz was in charge of countrys economy was not sustainable. It was restricted to a few sectors only, he said.

Telecom and banking were the two main sectors that received the bulk of the foreign investment that came from 2001 to 2007. There is no more room for any other player to enter the telecom market now because of immense competition while profits in banking sector are also declining because of rising number of non-performing loans and economic slowdown.

One very important reason why investment flows from abroad are falling is the economic slowdown in Western countries. Multinational companies have been hit hard by the recessionary conditions and they are unable to invest in developing countries. In fact, those who had been operating for long are considering abandoning it.

Muhammad Imran, head of research at First Capital Equities, says Pakistan has been affected by the recession in the West indirectly as the flow of funds from developed countries to emerging economies has been choked.

The problems at home also send a negative signal to foreign investors, he says. These include law and order situation, lack of infrastructure, power shortages and political uncertainty; he says and adds that foreign investment has declined because the government focus has deviated from economic development.

Foreign investors who had put their money in Pakistani stocks in the previous years when there was a boom in our markets pulled out large amounts last year owing to continuous decline in all three stock markets of the country. Foreign investors became net buyers at the Karachi stock market only recentlyafter a gap of fifteen long months.

But Saeed says that decline in foreign portfolio investment is good for countrys economy because it is highly volatile and, therefore, damaging for the economy. It doesnt boost production when it comes in, but when it goes outfor whatever reason, domestic or internationalit puts pressure on foreign exchange, he says.

---------- Post added at 11:45 PM ---------- Previous post was at 11:42 PM ----------

*Darwat Dam Project: Government plans to bring 25,000 acres under cultivation​*
ISLAMABAD: Realising the existing potential in agriculture sector, the government plans to bring 25000 acres of agriculture land under irrigation through construction of Darwat (Baran) Dam project.

The dam would be constructed on Nai Baran near Thano Bulla Khan, District Thatta / Dadu at Darwat Gorge Sindh with total cost of Rs 3.656 billion and the entire cost of the project would be provided by the federal government through Public Sector Development Programme (PSDP). Apart from irrigation of agriculture land, the dam would also help in providing water for domestic drinking purpose in the area.

The project area falls in the Kohistan geological region which itself consists of different formations named as Guru, Rani Kot, Takhdro and Baran etc. All the rocks exposed in the area are of sedimentary origin, working paper of the project obtained by Daily Times here on Tuesday revealed.

The agriculture in the area was wholly dependent on rain. Due to fluctuation in the subsoil water levels in dry seasons, tube-well irrigation was severely hampered. The reservoir area of the Baran Dam was located near Thano Bula Khan in district Dadu. The dam is located in district Thatta. Nai Baran is a large river with the catchment area of 3,151 square kilometers. The dam site is accessible from Karachi-Hyderabad super Highway at kilometer 114.

The dam site is proposed at Darwat Gorge, which located near the village of Jhingri about 20 km from Super Highway. The project reservoir area has been seriously neglected in terms of public facilities, education, health, sanitation, communication, infrastructure and other utilities.

An amount of Rs 500 million has been earmarked for construction of eight small / medium dams in Sindh, including Darwat-pas (Baran) dam project in federal PSDP 2009-10.

Ministry of Water and Power is the sponsoring agency of the project and Irrigation & Power department, government of Sindh would be responsible for operation and maintenance of the project. It would be completed in four years duration (from Oct 2009 to Sep 2012). The project is related to the issue of water augmentation, water conservation, ground water management and need for additional reservoirs.

The Sindh province covers an area of 140,913 square kilometers. 14 irrigation canals off-take from three barrages located on the Indus river at Guddu, Sukkur and Kotri, having length of 2083 km covering culturable command area of about 13.24 MA with peack discharge of 150,000 cusecs. The total length of channels off-taking from these canals is 18277 kms.

The technical appraisal of the working paper of the project revealed that the construction of this dam was endorsed in the context of national strategy to harness flood water for irrigation, power, water supply and other purpose through construction of small dams and is one of the prime minister program of small / medium dams in the country. Prime Minister has also desired the quick response on implementation of the project on fast track basis for completion of the project in stipulate time period.


----------



## Neo

*Causes: domestic and external shocks: 51 percent decline in foreign investment in fiscal year 2009​* 
KARACHI (July 15 2009): Foreign investment during last fiscal year (2008-09) registered a massive decline, of 51 percent, due domestic and external shocks and massive outflow of portfolio investment mainly due to political uncertainty. The State Bank of Pakistan (SBP) on Tuesday issued statistics of foreign investment (FDI) and portfolio investment for the fiscal year 2008-09, which shows that constantly for the second time the country witnessed a massive decline in foreign investment.

FDI declined by 31.2 percent during the year, while portfolio investment posted a dip of 2,730 percent. The State Bank report showed that overall, decline of some $2.7814 billion occurred in foreign investment during the year. With current decline overall foreign investment stood at 2.6685 billion dollars in fiscal year 2009 as compared to 5.4499 billion dollars in fiscal year 2008.

FDI stood at 3.7218 billion dollars in fiscal year 2009 as against 5.4098 billion dollars in fiscal year 2008, depicting a decrease of 1.688 billion dollars. "Domestic shocks like worst law and order situation, negative economic indicators, power shortage and future uncertainty have largely hurt the foreign investment and, ahead of these factors, foreign investors were more reluctant to invest in Pakistan," economists said.

Although, Pakistan was the most favourite country for foreign investors in the wake of high profitability during last five years (2002-2007), yet since 2008 foreign investors have been reluctant to invest in Pakistan due to the discouraging economic indicators, poor law and order situation, operation in northern areas and global economic meltdown, they added.

Economists said that rising power shortage has also played a vital role in the hampering foreign investment. They said: "On domestic side, reduction in private credit supply is clearly reflecting that presently local investors are not doing new investment due to the poor infrastructure". Foreign investors were expecting political stability after general elections in Pakistan in February 2008, but despite the constitution of a political government the country is still not out of political uncertainty.

They said that the country's overall foreign investment, which was in positive side in the initial months of current fiscal year, was constantly on decline for last few months and lastly it posted over 50 percent decline in fiscal year 2009. Major dip was witnessed in portfolio inflows as foreign investors withdrew millions of dollars investment from equity market due to uncertainty on the political front, they added.

"Foreign investors have adopted wait and see policy and stopped new investment till the economic situation could not clear on domestic and external front," economists said. Similarly, portfolio investment stood in a negative position of 1.053 billion dollars in last fiscal year over an investment of 40.1 million dollars in fiscal year 2008. Including privatisation proceeds, total private investment depicted a decline of 40.8 percent to 3.2126 billion dollars in fiscal year 2009.

---------- Post added at 12:21 AM ---------- Previous post was at 12:19 AM ----------

*Pakistan asks additional $4 billion in IMF loan​*
NEW YORK (July 15 2009): Pakistan has asked some $4 billion in additional financing from the International Monetary Fund as an "insurance" against the economic crisis, a top Finance Ministry official said on Tuesday. "The world has not come out of recession, so I might as well have more insurance," Finance Ministry chief Shaukat Tarin told investors in an event organised by the Asia Society in New York.

Pakistan has already signed a $7.6 billion loan deal with the IMF in November to avert a balance of payment crisis. Now the South Asian country is requesting additional financing worth two times its quota, or $3.1 billion, plus $1 billion worth of capital increase in the fund, Tarin told Reuters on the sidelines of the event.


----------



## Neo

*ADB to help Pakistan organise targeted safety net programme for poor​* 
FAISALABAD (July 15 2009): The Asian Development Bank will help Pakistan in transition from the system of inefficient and untargeted subsidies towards a targeted safety net programme for the poor, with a focus on women. To retain the reform momentum and predictability of financing, the government has requested ADB that the Accelerating Economic Transformation Programme (AETP-3) be processed in December 2009 for possible approval in the second quarter of 2010.

In an update project report of ADB on the second sub-programme of the Accelerating Economic Transformation Programme (AETP), subject to reform progress and financing requirements, subsequent sub-programmes could each be in the range of $400 million-$500 million, putting the AETP programme cluster's aggregate amount in the range of $1.8 billion-$2 billion. The scope and amount for each sub-programme will be finalised during the review and processing of the respective sub-programme.
 
According to the ADB report, the new Federal Social Safety Net Programme, the Benazir Income Support Programme (BISP), is expanding its coverage from 3.5 million families in FY2009 to 5 million families in FY2010 and aims to target up to 7 million families by FY2011. Benefits are also paid to female heads of families.

The government has improved inter-ministerial and agency co-ordination and information sharing to communicate reform measures more effectively than in the past. Further, the single tranche structure of the AETP sub-programmes ensures prior actions by the government before financing is provided, and engagement through a programme cluster ensures sustainability of such actions.

The ADB report mentioned that this is a generic concern which is elevated in the case of complex reforms. Technical assistance is helping to address this concern over the shorter term. Moreover, there is strong ownership for reforms since the agenda under the AETP is also largely home-grown.

Commenting over the "Weak fiduciary controls", the ADB report mentioned, with the large amounts of safety net needs and assistance, it is vital to design and execute the BISP in a fully transparent and accountable manner. The World Bank is providing a dedicated project, backed up by financing support; and ADB has worked closely with the government and World Bank, particularly to strengthen financial management systems.

Commenting over the "Global financial crisis", the report pointed out AETP measures are predicated on a global recovery. While the programme cannot influence global events, it can help cushion Pakistan against exogenous shocks.

At the same time, the risks associated with not supporting macroeconomic stability, fiscal sustainability, and Pakistan's social safety net programmes are very high. In the absence of timely reforms, the government's budget would be continually burdened by costly and inefficient subsidies, leaving far less resources for development financing. The financial sector would be vulnerable to systemic risks.

High and persistent macroeconomic imbalances would constrain investments and economic growth while aggravating poverty. ADB experts hope that the AETP-2 to include (i) strong and sustained leadership and commitment to reforms, (ii) development partner coordination, and (iii) open dialogue with the private sector and other key stakeholders.

The AETP will help Pakistan achieve and sustain higher economic growth in the medium term. The expected outcome of AETP-2 is improved prospects for macroeconomic stability and fiscal sustainability through (i) reducing short-term distortions in the agriculture and energy sectors while improving the social safety net for the poor and vulnerable, and (ii) strengthening financial inter-mediation.

Commenting over the "Special Features of AETP-2" ADB report stated that it is an integral part of the Government's macroeconomic stabilisation programme. ADB has participated in IMF missions, at the government's invitation and with IMF's consent, to ensure close co-ordination on the reform agenda.

AETP-2 supports the empowerment of women under the Benazir Income Support Programme (BISP). The amount of $150 million of AETP2 will go to the BISP, whose primary recipients are female heads of the family so that women of poor families can directly access and manage the social safety net benefits.

AETP-2 will also help women to obtain national identification cards, a precondition to receive BISP benefits. The national identification card provides women with a legal identity and will enable them to play a greater role in society. The government will ensure that the local currency generated from the proceeds of the OCR loan to be used first to support the adjustment costs of reforms to be initiated and implemented under AETP-2, and second to finance expenditures for the government's general development purposes.

The government will ensure that the local currency generated from the proceeds of the ADF loan to be used to support poor and vulnerable families that qualify via the new targeting scorecard method under the BISP set forth in output 1 of AETP-2. ADB report pointed out that the Loan Proceeds would be used to pay for items procured in ADB member countries, other than the items specified in the negative list of ineligible items and imports financed by other bilateral and multilateral sources.

The proceeds of the programme loan will be disbursed in accordance with the provisions of ADB's simplified disbursement procedures and related requirements for programme loans. Loan proceeds disbursed against imports will require a certificate from the government stipulating that the value of Pakistan's total imports, minus its imports from non-member countries, ineligible imports, and imports financed under other official development assistance, is equal to or greater than the amount of the loan expected to be disbursed during a particular year. ADB reserves the right to audit the use of loan proceeds to verify the accuracy of the government's certification.


----------



## Neo

*Rs10.35bn approved for FATA ADP ​* 
Thursday, July 16, 2009

PESHAWAR: A high-level meeting on Wednesday approved Rs10.350 billion for Annual Development Programme 2009-10 of the Federally Administered Tribal Areas (FATA). 

NWFP Governor Owais Ahmed Ghani presided over the meeting and attended by FATA parliamentarians, FATA additional chief secretary, secretary to the governor, FATA P&D secretary, political agents, DCOs and heads of FATA line departments. 

The meeting was informed that the federal government had allocated Rs11.50 billion for FATA development during the current financial year out of which Rs1.15 billion would be spent by FATA development authority leaving behind Rs10.350 billion for FATA Annual Development Programme to be executed through the line departments of FATA secretariat. 90 per cent of the total outlay amounting to Rs9.265 billion have been allocated for ongoing projects and Rs1.18 billion, 10pc of the total development budget, will be spent on the new development schemes. 

Under agency-wise allocation, the highest amount of Rs1.567 billion had been allocated for South Waziristan Agency followed by Rs1.186 billion for North Waziristan Agency. Similarly, the highest amount of Rs3.20 billion under sector-wise allocation is earmarked for the communication sector followed by Rs2.20 billion for education. 

Similarly, realistic cost estimates have been prepared so that all schemes should be completed in two years. The meeting thoroughly discussed the ADP proposals and the proposals from the parliamentarians. 

The governor while talking on different points said the situation in FATA was now becoming conducive for carrying out the development process that now onward progress and development of FATA would be mainly focused. He directed the officials to ensure full utilization of funds and speedy completion of projects.

Ghani said quarterly review meeting would be held in order to see progress on each and every development project. The slow moving projects, he added, would be revisited and funds would be reallocated for fast-moving projects. 

He said under ADP, funds allocation had been made under an agreed formula, which, he added, was only for ADP allocations. About consultation with FATA parliamentarians, the governor said the process was continuing at various forums, adding that elected representatives were being involved in the process at the agency level as well. 

The governor appreciated the performance of FATA monitoring cell, saying that the monitoring system was going on effectively. 

We have prepared the system on modern lines under which a clear picture about on-the-ground progress is achieved, he added. He hoped that cooperation and support of elected representatives would be of great help in the completion of development schemes. 

Earlier the meeting was also briefed on the ADP achievements during the previous financial year. It was told that during 2008-2009, Rs5.61 billion were released for the FATA development under ADP and utilized totally. Work on 316 development projects were carried out, after completing 198 schemes. 

The meeting was told that three mega projects having Bara Dam had been brought under the federal PSDP. The scholarships were awarded to more than 27 thousands students in the education sector and 656 students in the health sector during the previous financial year.

---------- Post added at 08:53 AM ---------- Previous post was at 08:52 AM ----------

*NWFP to start mega livestock projects ​* 
Thursday, July 16, 2009

ABOTTABAD: NWFP Minister for Livestock and Dairy Development Hidayatullah Khan has said mega projects are being launched for the development of livestock sector which will generate jobs for local people. 

He expressed his views while speaking at the concluding session of the annual review meeting of the department at the Veterinary Research Centre Abbottabad on Wednesday. 

The minister said under the new projects, one model dairy farm, beef farm and poultry farm would be established in every district of the province. Local people will not only get eggs, milk and meat but also jobs from these farms, he added. The minister appreciated the performance of position-holder officers in 2008-09 and distributed certificates and awards. 

Livestock Director General Dr Sher Mohammad briefed the minister about the achievements, planning and other requirements of the department, especially for the year 2008-09, vaccination of animals, availability of animal medicines, mobile clinics, poultry industry and bird flu. 

The minister said it was need of the hour to upgrade the livestock department because it was the main earning source of the common man of backward areas. He hoped that officials of the department would come up to the expectations of public. He directed the authorities concerned to expedite work in service structure and promotion process.

The meeting was attended by Director VRI Dr Nasir Hussain, Director Livestock Fata Dr Bashir and others.

---------- Post added at 08:58 AM ---------- Previous post was at 08:53 AM ----------

* New 250MW power unit to supply electricity to textile mills ​* 
Thursday, July 16, 2009

ISLAMABAD: A power unit of 250 megawatts is being installed in Faisalabad to provide uninterrupted power supply to the textile industry, which will be operational by the end of the current month.

This was stated by the Federal Minister for Textile Industry Rana Muhammad Farooq Saeed Khan while chairing a meeting regarding energy issues of the textile sector here on Wednesday.

During the meeting, the overall situation of the textile sector and the problems faced by it due to energy crisis came under discussion.

The participants expressed deep concern over high tariffs and said that special tariffs should be introduced for the textile sector. They also apprised the federal minister about bank-related matters in detail and BT cotton and R&D-related matters were also discussed.

Participants gave different proposals and suggestions to help overcome different crisis faced by the textile sector. They mentioned that our economy mainly depends on the textile sector. Therefore, the government has to take concrete steps in this regard.

Federal minister for the textile industry said that textile is the most important sector of our economy and the government is committed to resolving all textile-related issues on priority basis because it is our export oriented sector. He said that the concerns of participants, along with their proposals and suggestions are most valuable, which is why all possible remedial measures would be taken in this regard.

Maximum relief will be provided to the textile sector, he said, adding that different meetings with NEPRA, WAPDA, OGRA, SBP and Federal Minister for Food would be arranged to settle maximum issues.

Reactions: Like Like:
1


----------



## Neo

*President for utilising expertise of overseas Pakistanis ​* 
Thursday, July 16, 2009

ISLAMABAD: President Asif Ali Zardari on Wednesday called for a credible and transparent mechanism to facilitate highly qualified overseas Pakistanis for access to job opportunities internationally and to enable them to invest their skills and expertise in the country on short-term basis.

The president said this during a briefing held in the Presidency on Placement of highly qualified Pakistanis in a shrinking global job market.

The briefing was attended by Minister for Foreign Affairs Shah Mahmood Qureshi, Minister for Investment Waqar Ahmed Khan, Minister for Labour & Manpower Syed Khurshid Ahmed Shah, Punjab Governor Salman Taseer, Minister for Overseas Pakistanis Dr Muhammad Farooq Sattar, Secretary General to the President Salman Faruqui, Planning Commission Deputy Chairman Sardar Aseff Ahmed Ali, Minister of State for Parliamentary Affairs Mehreen Anwar Raja and MOS for Finance Hina Rabbani Khar. Secretaries and senior officials of various ministries were also present in the briefing.

Bilawal Bhutto Zardari, Bakhtawar Bhutto Zardari, Aseefa Bhutto Zardari, children of the president, also attended the meeting by special invitation.

Talking to the media about the meeting, spokesperson to the President Farhatullah Babar said the meeting was convened to mark the formal launch of Presidents Programme for Care of Highly Qualified Overseas Pakistanis.

The programme is aimed at integrating the expatriate community into national development strategies even as they continue to live and work abroad, he said.

The president said the world was passing through a phase of economic slowdown, which called for new approaches and strategies. One of the strategies that could be usefully employed was tapping the vast potential of expatriate Pakistanis for providing short-term services to the country, he said.

The president said the first step in this direction should be the development of a national database of expatriate Pakistani professionals as well as of local institutions and projects in the country where services of expatriate nationals could be utilised.

President Zardari said the idea of the project occurred to him after realising that there were a large number of highly qualified professional Pakistanis living and working abroad. He said their collective wisdom and expertise could be harnessed in meeting the myriad challenges facing the country.

The meeting was informed that a website of the programme, launched yesterday morning, had already been visited by over 30,000 people from throughout the world. More than one 170 expatriate Pakistanis had also sent their particulars and shown interest in short term service in Pakistan on the very first day of the launch, the meeting was informed.

The president also called for creating an online employment placement network with a user friendly interface between potential employers and expatriates seeking employment or part time utilization of their skills and expertise.

He said provision should also be made for developing partnerships with global employment agencies by establishing a link with global on-line job searches and job placement websites.

Minister for Labour and Manpower Syed Khurshid Shah thanked the president for his interest in integrating the expatriate community in the national mainstream.

Minister for Overseas Pakistanis Farooq Sattar said todays event was the first step in the long journey to harness the great potential of Pakistanis working abroad. He congratulated the president for his initiative.


----------



## Neo

*Pak textiles relocating to Bangladesh ​* 
*Industrialists lured by duty free access to EU, 40pc cheaper electricity in BD​*
Thursday, July 16, 2009

KARACHI: A number of Pakistani textile houses are relocating their businesses to Bangladesh due to continuous hardship here, The News learnt on Wednesday.

Around four major Pakistani textile giants are in Bangladesh these days to shift their business so that they could furbish their exports orders in time, said one textile exporter of Pakistan on phone from Bangladesh.

Towellers, a leading name in Pakistans home textile industry, is about to shift its business to Bangladesh, informed Farrukh Maqbool, Chairman of Towel Manufacturers Association of Pakistan (TMAP) in a press statement and added that Towellers COO Pervaiz Kazi is travelling to Dhaka this week to meet with the Bangladesh Board of Investment (BoI) officials and finalise the companys relocation strategy.

Textile exporters had already warned the Pakistani authorities that they would move their businesses to Bangladesh when they were highlighting the anomalies in budget 2009-10 at PHMA House last month. These businessmen were included S M Obaid and Rafiq Habib Godil.

The reasons behind shifting their business to their competitor country i.e. Bangladesh are that the cost of doing business is continuously rising in Pakistan while countrys bureaucracy was formulating unnecessary regulations, said Syed Usman Ali, Former Chairman of TMAP.

He maintained that the law & order situation, on the other hand, was not allowing them to do their business tension free here. Owing to this law & order situation, the buyers did not come to Pakistan and they have to go to the buyers country or any other third country. 

So that travelling to buyers country was an additional burden on our balance sheets, he added.

The frequent protest strikes, electricity outage and red tape and law and order altogether did not allow exporters to ship orders in time to the buyers, he elaborated. On the contrary, the Bangladesh was offering a number of incentives to its textile-exporting sector. According to rough estimates, doing textile business in Bangladesh is about 30-50 per cent cheaper than Pakistan, it was learnt.

Under the label of Least Developed Country (LDC), the Bangladesh enjoys zero rated exports to European Union, Australia and Canada, while Pakistan pays these levies range from 11-20 per cent, said Former Chairman of TMAP.

He compared that the electricity in Bangladesh was 40 per cent cheaper than Pakistan and 60 per cent cheaper in India as compared with Pakistan, he added. He maintained that the labour in Bangladesh was also available on low salaries. The maximum salary over there is 3,600 taka, while they in Pakistan have to pay Rs6,000/- plus 15 per cent salaries here.

He said that the State Bank refinancing was not available to them since the beginning of new fiscal year 2009-10, as SBP has stopped refinancing to those exporters whose dues with SBP are overdue then 90 days. He said this type of policy was never made in the last 25 years then why bureaucrats were formulating this type of policy during the tenure of an elected government.

TMPA statement added that due to non-cooperative attitude of the government towards the industry, many exporters are planning to relocate their units to Bangladesh. The government has been turning a deaf ear to many pleas from the textile industry which is resulting in closing down of numerous mills leading to further unemployment in the country.

Textile sector has been crying for months about stuck up R&D funds, high finance cost, continuous increase in cost of production and energy shortages, the statement added.


----------



## Neo

*Accelerating Economic Transformation Programme: Zero electricity subsidy by Sept 2009 envisaged​*
ISLAMABAD: The Accelerating Economic Transformation Programme has recommended the government to bring electricity subsidy to zero by 30 September 2009, and elimination of distortions in food and energy sector along with some other structural changes.

The programme is recommended in Asian Development Banks Report and Recommendation of the President to the Board of Directors.

Some key targets of AETP also seek amendments in NEPRA Act to enable timely adjustment of tariff. It has also recommended to form a debt holding company to assume circular debt burden of public power sector companies. 

The plan calls for a sustained 8 percent growth over the time span of 2010-2020 and advocate a market based pricing for farmers and flour millers by 2010. The other key envisions of the plan are to increase banking sector credit to private sector to 42 percent of GDP by 2018; manufacturing sectors share of GDP increased by 30 percent by 2020; and high value-added output share of exports increased to 40 percent of GDP by 2020. 

Under AETP2, the Government adopted a power sector circular debt resolution plan and has begun with its implementation. The plan, which was developed in close consultation with ADB, the IMF, and the World Bank should resolve the circular debt problem and more broadly the financial deficit in this sector. It should indirectly support improved corporate governance and reduce technical issues (losses, theft, antiquated equipment, etc.), which have caused the chronic shortfall in Pakistans power supply. The plan clarifies the amount of the debt and key activities, including measures to prevent reoccurrence and ensure sustainable debt servicing. It identifies financing sources and agreements and includes milestones, an implementation timetable, and a monitoring framework. The key components of the plan can be grouped under three headings: (i) Timely notification of cost recovery tariff. (a) The NEPRA Act will be amended to enable the determination and enforcement of tariff adjustments in a timely manner. (b) Notification of tariffs will not exceed 15 days from determination and the monthly fuel and power purchase adjustments will be made effective automatically upon determination by NEPRA. 

Electricity tariffs will be determined by NEPRA on quarterly basis. A business plan for FY 2009-10 has been prepared to support tariff reform and maximise outputs and sales in selectricity and minimise costs by reducing system losses. Under this plan, electricity tariffs will be increased by 17.5 percent or as later determined by NEPRA to meet the zero tariff differential subsidy commitment. The adjustment will be front loaded and made effective by 1 July 2009, with the remainder to be effective by September 2009. 

Sector debt resolution: The government will establish a debt holding company by 30 June 2009 to assume the debt liabilities of public power companies, which will in turn strengthen the financial position of these companies. The debt holding company will be wholly owned by the government and will manage and pay the liabilities through the sale of assets, among other things, over the next 5 years. Public power sector companies have outstanding liabilities of Rs 142 billion (as of 31 March 2009), which are payable to GENCOs, IPPs and fuel suppliers. Of this, the MOF will settle or assist to settle Rs 53.5 billion, power sector companies will recover Rs 27.7 billion from customers, and MoF will assist in paying the remaining Rs 61 billion in liabilities. Performance contracts will be entered into between MOWP and each of the power companies effective 1 July 2009 to promote corporate autonomy, financial independence and improved performance. 

Wheat pricing: Under AETP1, the government adopted an action plan to move to a more market-based wheat pricing and efficient reserve management system. Under AETP2, the government has agreed to implement a formula-based system for setting the procurement price for farmers to ensure that such price operates as a floor price and remains below the competitive market price and ensuring that the wheat issue price reflects related costs, including those for transport and storage. An efficient safety net programme will eliminate the need to subsidise the issue price, which subsidy is in large part captured by flour millers. Under subsequent subprogrammes, implementation of the ECC action plan will be assessed and key reform initiatives implemented will be reflected. For AETP3, the government expects that strategic reserves will be maintained at two months of annual consumption and that operational reserves will be eliminated.

Reactions: Like Like:
1


----------



## 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).


----------



## Neo

*FDI likely to continue downward slide ​* 
KARACHI (July 16 2009): The slash of foreign investment to virtually half in FY09 verses last year is primarily attributed to a slowdown in privatisation proceeds and high concentration of investment in saturating telecom sector. What's worrisome is that Foreign Direct Investment (FDI) is likely to continue downwards in FY10 as no major commitment by global players is in pipeline; the writing was on the wall at boom times.

The global financial crunch and bleak security situation in the country has contributed to gloomy situation as it has halted the flows in consolidating financial sector. The exuberance of foreign investment in FY06-08 (averaged at $6.12 billion per year) was due to cellular sector boom and consolidation of banking sector.

The saturation of these industries was even anticipated in FY07, critics were even surprised by the delayed entry of China Mobile (contributing roughly $2 billion for FY08 and FY09). The dark side of the moon is that investment in services sector does not bode well for long term economic growth as most of revenues generated from these industries will be remitted to parent countries in coming years.

Although this has created employment opportunities and provided better communication facilities to spur economic activities, our long term focus should have been on infrastructure (power projects, dams and roads construction) and commodity sectors investments.

The inflow of foreign investment declined by 51 percent, YoY, to stand at $2.67 billion in FY09, where Foreign Direct Investment (FDI) shrunk by $1.69 billion (31%) to 3.72 billion owing to dearth of fresh investment in the outgoing year. The contribution of telecom and financial business investments (comprised of over 60% of FDIs in FY08, now reduced to 42%) declining by 46 percent to $1.52 billion.

Meanwhile, Foreign Portfolio Investment (FPI), considered as hot investment with short-term horizon, reversed its direction in arguably the worst ever global financial year since the Great Depression. It recorded an outflow of $509 million last year as compared to an inflow of $19.3 million in FY08.

Equity market, the main recipient of FPIs in the last few years, was under major battering with an outflow of $408 million in FY09. But this is understandable as $31 billion (equalling 55%) of market capitalisation was wiped in FY09 on the Karachi Stock Exchange.

The maturity of both public ($544.1 million Euro Bond) and private ($100.6 million Pakistan Mobile company limited) bonds has also reversed the flow in debt market and given the current economic environment any further foreign investment in domestic debt market in FY10 seems unlikely.

Public sector investment is also going to remain muted considering that economic managers do not have any new Euro Bond, GDR or privatisation of public companies on their agenda this year. And although, FPI may show some respite to declining foreign flows on account of likely recovery in stock market; in the absence of FDI triggers the overall picture remains gloomy.


----------



## Neo

*Capacity building: Pakistan to learn from Malaysian model ​*
KUALA LUMPUR (July 16 2009): Pakistan can learn from Malaysian experiences in capacity building in the fields of industrial and manufacturing sectors. This was stated by Javad Malik, Chief Executive, National Productivity Organisation, a department under the Ministry of Industries of Pakistan.

He is currently on a three-day visit to Malaysia to benchmark Malaysia's expertise in capacity building and quality enhancement, with particular focus on industrial and manufacturing sectors. During a meeting with Malaysian experts, he said that Malaysia had indeed made tremendous progress in developing key performance indicators in the industrial and manufacturing sectors and developed a model of its own to successfully improve their capacity and productivity.

He said that Pakistan can learn from Malaysian experiences in these fields. Javad said there would be follow-up meetings and co-ordination between the two countries to learn from each other's experiences and building these understandings learning, the scope of co-operation would also be extended to services and agriculture sectors.

The three-member delegation, headed by Javad, is visiting Malaysia as organised by Malaysia Productivity Council and Asian Productivity Organisation of Japan, of which Pakistan and Malaysia are members. During their three-day stay in Malaysia, the delegation held various meetings with senior management of Malaysia Productivity Council, including the Director General, and heads of various departments and visited industrial and manufacturing facilities.

The delegation was briefed on Malaysia's successful implementation of policies for enhancement of productivity in industrial and manufacturing sectors and both sides discussed ways and means to introduce Malaysian model for capacity building of industrial and manufacturing sectors with the objective to improve upon their productivity. Commenting on the visit, Javad termed it highly useful and productive.


----------



## Neo

*Export target not met ​*
EDITORIAL (July 15 2009): The government has been unable to meet the revised export target of 19.2 billion dollars for the fiscal year 2008-09, according to statistics released by the Federal Bureau of Statistics (FBS). The shortfall in exports is about 1.419 billion dollars, accounting for a trade deficit of 17.040 billion dollars.

Thus, the government over-estimated exports twice last year as the 2008-09 budgetary target was around 22 billion dollars, which was revised downward to 19.2 billion dollars and the actual achieved was 17.78 billion dollars. One can find several plausible explanations for the failure to meet the target, notable amongst which is the global recession that negatively impacted our consumer based export items such as textiles.

Massive loadshedding curtailed the productive capacity of all sectors, including the export sector, while there was continued government failure to support the textile sector, our largest export earner, in marked contrast to the support rendered to this sector by other countries, including our major competitors in the international market, for example India. To fall short of the export target by 1.4 billion dollars is an extremely significant amount and is close to the annual US assistance to Pakistan of 1.5 billion dollars, for which members of the country's executive have expressed their appreciation.

Imports for the year were estimated at 34.822 billion dollars, a decline of 5.1 billion dollars from fiscal year 2007-08. Major part of the decline is no doubt attributable to the decline in the international price of oil and products - from a high of 147 dollars per barrel to a low of 40 dollars a barrel, though the price is rising again.

However, what is inexplicable is the fact that the government forecast was so out of synch with reality. Forecasts are used to formulate policy that, consequently, impact on macroeconomic variables and until and unless, they are close approximations the outcome is unlikely to be an effective and targeted policy.

Considering that the trade policy was announced a year ago by Chaudhry Mukhtar, when the budgetary forecast was considered relevant, many would argue that there is a need to revisit some of the policy directions contained in the Trade Policy, especially with respect to trade liberalisation measures.

In addition, the government's tendency to forecast figures that are not likely to be met, a tendency displayed by the past as well as the current government has led to numerous allegations that statistics are deliberately manipulated and needs to be curtailed. For after all, the political price of failure to meet the targets at a future date would be paid by the sitting government.

It is pertinent to note that the government will have to make up a trade deficit of 17.78 billion dollars. It is also noteworthy that in the last fiscal year, the government was unable to convince the International Monetary Fund to extend the next tranche of around 800 million dollars because of its failure to meet conditions related to the energy sector. In effect, the government requires an excess of 18 billion dollars to support its balance of payment position - money that is unlikely to be injected into the economy in the current year. Hard times are certainly not over for the people of this country.


----------



## Neo

*Pakistan's current account deficit narrows in 2008/09​*
KARACHI, July 16 - Pakistan's current account swung back into deficit in June, but the overall deficit for the 2008/09 fiscal year narrowed by over a third compared with a year earlier, the central bank said on Thursday.

The current account recorded a deficit of $635 million in June compared with a revised surplus of $283 million in May, data from the State Bank of Pakistan showed.

Analysts said higher imports of oil products, in anticipation of rising fuel prices, were probably behind the fall back into deficit.

Still, the deficit for the fiscal year that ended on June 30 fell to a provisional $8.861 billion, down from a revised $13.866 billion the previous year.

Pakistan entered a $7.6 billion emergency International Monetary Fund programme late last year to avert a balance of payments crisis.

The full-year deficit is now equivalent to about 5.4 percent of gross domestic product .

"The IMF and the government were expecting the deficit to be 5.9 percent of GDP, so in that sense it's very positive," said Sayem Ali, an economist with Standard Chartered in Karachi.

"It ... indicates that the gains made in the last nine months since Pakistan entered the IMF programme are sustainable," he said.

Analysts said increased foreign participation in the equity market in recent weeks, as well as record remittances in 2008/09, were also an indication of the country's improving economic situation.

Pakistan is hoping to get the roughly $875 million third tranche of the IMF loan approved early next month.

Pakistan received a record $7.81 billion in remittances from overseas nationals in the fiscal year ended June 30, up from $6.45 billion in 2007/08.

Its trade deficit for the 2008/09 fiscal year narrowed to $17.04 billion from $20.91 billion in the preceding year.


----------



## Hyde

*Marble exports raises to 60% in last fiscal year​*
Updated at: 0911 PST, Thursday, July 16, 2009
Marble exports raises to 60% in last fiscal year KARACHI: The sixty percent raise was recorded in marble exports during last fiscal year.

Chairman Marble Exporters Association Sanaullah Khan said this while talking to Geo News. He said in fiscal year 2007-08, marble exports were at the level of $ 19.6 million, which has been raised to $36.1 million in 2008-09.

Sanaullah said the duration of load-shedding in marble processing factories in Karachi has been dropped from 12 hours to 3 to 4 hours and if it will continue, the export will be climb to 100 percent during current fiscal year.

Source: Marble exports raises to 60% in last fiscal year - GEO.tv


----------



## Neo

*KSE rises above 7,700 points to hit three-month high ​* 
Friday, July 17, 2009

KARACHI: The local equity market witnessed a bullish trend on Thursday on the back of selective buying. The gradually rising Karachi bourse successfully breached through 7,700 points level on Thursday to stand at three-month high.

The KSE-100 Index was up by 29.27 and closed at three months high level at 7715.42. The KSE-30 with gained 30.99 points to close at 8289.83 points, KSE-All Shares Index was up by 19.03 points to close at 5499.21 points and KMI-30 Index was up by 19.62 points to close at 11521.21 levels.

Market capitalisation stood at Rs2.271 trillion as compare to Rs2.263 trillion in the last session.

Ahsan Mehanti CEO of Shahzad Chamdia Securities stated that buying activity witnessed on expectation of significant discount rate cut after the T-bills cut-off yields dropped to 156bps-78bps in SBP auction.

Investors took positions on oil sector expecting record payouts. Rise in international oil prices to $61, continued foreign interest in the market played a catalyst role for positive activity.

Khurram Shehzad analyst at Invest Capital stated that foreign interest is developing in the market and expectation of decline in the discount rate is boosting the investors confidence. 

Over all market fundamentals are strong and result season will further boost the market.

Hasnain Asghar Ali analyst at Aziz Fida Hussein & Co. stated that market was triggered by optimism from the upcoming events that allowed the index to increase the trading band, the beneficiaries continued to invite buying interest on opening.

Although major interest was generated by the seasoned players and stayed of speculative nature, increasing turnover has reduced the premium of selling the desired quantity at market rate, all thanks to the recent commitment of reduction in cost of trade. 

Although official notification is yet to be received, healthy turnover has placed the corporate participants at ease. While the likely gainers in advent of increase in international oil prices and weakness in local currency, mainly Oil and Gas exploration stocks and exporting concerns kept the buyers interest alive. 

The recent surge in buying interest by the foreign participants (of the local economy) allowed the privileged stocks to lead the gains. 

Partially disappointed by the ongoing delay in introduction of ready board leverage (since update is not available) and inability of the authorities to stay at par with the market demand, market men opted for offloading at short profits, the strategy did lead to a midday stagnation, thereby disallowing the index to sustain above the resistance of 7770-7777, Ali concluded. 

Trading activity decreased as compared to the last trading session as the Ready market volume stood at 194.360 million shares as compared to 236.246 million shares in the last trading session. However no activity was seen in the future market.

Among the active issues 155 companies were positive, 161 declined and 25 remained unchanged.

DGK Cement was the volume leader with 13.730 million shares closed at Rs34.90 with gain of 83 paisa, followed by Nishat Mills Ltd with 13.157 million shares closed at Rs41.14 with loss of 7 paisa, Azgard Nine Ltd with 11.725 million shares closed at Rs26.86 with loss of 2 paisa, Bank Al-Falah with 10.648 million shares closed at Rs12.38 with loss of 2 paisa, UBL with 10.398 million shares closed at Rs45.08 with gain of Rs.1.03.


----------



## Neo

*Power generation projects of up to 50MW: Ministry preparing summary to seek permission from cabinet​*
** Prime Minister Yousaf Raza Gilani allowed provinces to begin power generation projects after federal cabinets approval​*
ISLAMABAD: Following the directives of the prime minister, the Ministry of Water and Power is making a summary to seek the permission from the federal cabinet to allow provinces to initiate power generation projects of up to 50 megawatts (MW), sources told Daily Times on Thursday. 

For overcoming the power shortfall, the two provinces, namely Punjab and Sindh had sent the proposal of initiating different power generation schemes to the Ministry of Water and Power. The ministry informed the Prime Minister Yousuf Raza Gilani during his visit to the ministry on June 16 that the provinces sought permission for initiation of power generation projects. Sources further said that the PM in its recommendation had allowed the provinces to begin power generation projects subjected to the approval of the cabinet. 

The prime minister directed the ministry to focus on developing indigenous energy resources like coal, hydro and wind, which the country had in abundance and if these resources were developed, this could secure cheap energy supplies for the next several decades. The PM also directed the Ministry of Water and Power that indigenous fuel-based power generation projects should be carried out on fast-track basis so as to effectively deal the challenges of energy shortage. 

In other directives to the Ministry of Water and Power the PM also stressed for elimination of wastage and inefficiencies within energy production and distribution system so that the ministry should invest in the systems upgradation to bring energy losses in line with internationally accepted levels by developing a viable investment plan. 

The PM also directed the ministry to focus on promotion of energy conservation measures and called for the formulation of a realistic conservation plan in consultation with all the stakeholders to save 20-25 percent energy, which would save foreign exchange.

According to the PMs directives, the service providers needed to be made more efficient and client responsive in order to achieve commercial viability and reduce the present reliance on heavy subsidies, which were directly and indirectly being paid by the taxpayers and the ministry should focus on this aspect as well. 

The PM directed the Ministry of Water and Power to speed up its efforts to enhance public and private sector power generation to a maximum capacity for public relief and promotion of economic and commercial activity in the country. 

Regarding village electrification programme of the government, the PM had asked the Ministry of Water and Power to contact the Ministry of Finance and proper funds would be provided for this cause, the sources maintained. About availability of furnace oil and gas for power generation thermal plants, the PM had directed the Ministry of Water and Power to contact with the Adviser for Ministry of Petroleum and Natural Resources so as to overcome power shortfall soon. 

The PM also expressed willingness to visit Mangla Dam Rising Project with consultation with the Ministry of Water and Power in the near future. 

About complete removal of load shedding by December 2009, the sources said that the PM directed the ministry to work hard and fulfil the promise as the power shortfall badly affected commercial activities, industrial production and even the common people.


----------



## Neo

*Govt may approve 4.4MW Naulong project​*
ISLAMABAD: The government plans to construct Naulong Dam project for exploiting hydropower potential by installing two powerhouses having total installed capacity of 4.4MW. The total cost of the project is estimated to be Rs 14.726 billion. 

The dam will be constructed at Mula River, district Jhal Magsi Balochistan. Apart from power generation, the project will also help in mitigating and storing flood waters of Mula river and thus an average of 137860 acres feet would be annually available for developing irrigated agriculture for command area of 47000 acres. Mula River will control floodwaters of the river and will save the loss of life and property. 

The dam would also help in smooth supply of water for drinking and other domestic useRs Seepage from the dam will recharge the groundwater reservoir and increase the resources of future. The project will also increase the development of fisheries in the area. The total cost of the project (Rs14.726 billion) also include Rs16.567 million as Foreign Exchange Component, and according to the working paper of the project, available with Daily Times revealed that the project would be financed through Federal Public Sector Development Programme (PSDP) 2009-10. The government allocated an amount of Rs800 million for construction of eight dams in Balochistan including the Naulong Dam Project in the PSDP. 

In Balochistan the perennial irrigation supply from Indus River is available through the Pat Feer canal and the Khirther canal irrigation systems. Centuries old karez system is present in the province, which was not enough to meet the irrigation demand of the province. To increase the groundwater storage, delay action dams and storage dams need to be constructed. 

Construction of Naulong Dam project is endorsed in the context of national strategy for harvesting flood water for integrated water resources utilization through augmentation of small/medium dams. The project is included the Prime Ministers Program for construction of 32 small/medium dams in Pakistan. Prime Minister has also desired that implementation of the programme may be started on fast track basis for early completion of the sub projects in the stipulated time. 

The technical appraisal of the working paper of the project revealed that the project has been designed to bring 27,000 acres under irrigation. As per Water Accord, it was mandatory to get certificate from IRSA for availability of water, as the reservoir operation capacity is more than permissible limit (5000 acres to bring under cultivation). The Central Development Working Party (CDWP) in its meeting today (Friday) is likely to approve the project and after its start, the dam would be completed in four years. ijaz kakakhel


----------



## Neo

*Current account deficit shrank by 36 percent in 2008-09 ​* 
KARACHI (July 17 2009): The country's current account deficit has shrunk by 36 percent to 8.8 billion dollar in fiscal year 2008-09 mainly due to higher home remittances and sharp decline in trade deficit. The central bank on Thursday revealed that the country has posted a current account deficit of 8.861 billion dollar in fiscal year 2008-09 as compared to 13.866 billion dollar in fiscal year 2007-08, depicting a decline of 5 billion dollar.

Current account deficit as per percentage of GDP has also reduced to 5.4 percent in last fiscal year as against 8.7 percent of GDP in fiscal year 2008. "Massive decrease in the country's current account deficit has occurred due to all time high home remittances, decline in goods imports and trade deficit, besides aggressive performance of services sector," said Muzzamil Aslam an economist at JS Global.

He said current account balance was constantly on deficit side since June 2007 to January 2009 largely contributed by high goods imports on the back of rising commodity prices at international front. However, a major cut in imports followed by slow trade activities had improved the situation and by the end of fiscal year 2009 current account deficit had declined by 36 percent, he added.

He said rising current account deficit in last fiscal also forced the government to rejoin International Monetary Fund (IMF), as a result country got a 7.6 billion dollar worth stand-by loan to meet its current account requirements and avoid any default. "Current account deficit in fiscal year 2008-09 is also lower than the government's and our expectations, as we were expecting over 9 billion dollar deficit in last fiscal," Muzzammil added.

He said current account deficit would be about 6.6 billion dollar in the current fiscal year 2009-10, if average oil prices would not be higher than 55 dollar per barrel in international market. Muzzammil said decline in the current account deficit would also help to keep the exchange rate stable, besides strengthening the foreign exchange reserves.

"Strengthening the current account would also help to stabilise the exchange rate to a reasonable level and further build the country's forex reserves, which already have crossed 12 billion dollar due to decline in current account deficit," he said, adding that improving current account situation also indicated overall economic stability.

Trade and services sector have presented a significant improvement and contributed major share in the depleting current account deficit, while income deficit is still witnessing an upward trend. Country's overall goods imports stood at around 31.71 billion dollar and exports at 19.22 billion dollar with a trade deficit of 12.494 billion dollar during last fiscal year, which stood at 14.97 billion dollar in fiscal year 2008.

Services deficit has declined by 3.2 billion dollar to 3.231 billion dollar with 4.043 billion dollar exports and 7.274 billion dollar imports in last fiscal year. However, country's income deficit is continuously on surge and mounted by 11 percent to 4.338 billion dollar in fiscal year 2008-09 with 902 million dollar inflows and some 5.24 billion dollar outflows.

Overall deficit including goods, services and income stood at 20.0063 billion dollar against the current account transfers of 11.308 billion dollar during the period. Month on month basis, current account balance has registered a deficit of 635 million dollar in June 2009 as compared to a surplus of 283 million dollar on the back of high goods imports, which stood at 1.1 billion dollar.


----------



## Neo

*Mining in Thar: UK firm given assurance by Sindh government ​* 
ISLAMABAD (July 17 2009): Sindh government has given assurance to a UK-based firm, Oracle Coalfield Plc, that it will be the first company, which will start mining in Thar, official sources told Business Recorder on Thursday. This pledge was given at a recent meeting between Oracle representatives Mike Joyce, Tony Scutt and Shahrukh Khan, at the office of the Secretary of Mines and Mineral Development in Karachi.

During discussions, the delegation was informed that the work was progressing satisfactorily as per schedule, and that the feasibility study report would be completed on fast tack basis and would be finalised in November, 2009. After evaluation of feasibility report by the technical committee and its clearance, they will apply for grant of mining lease and will pay all requisite fees.

Oracle representative Mike Joyce stated that that Oracle had examined Thar coal and considered it mineable. "Any suggestion to the contrary is unfounded," he said, and quoted an example of four power plants of 4000 MW, established within the radius of 10 square kilometres in Australia, with the coal quality inferior to Thar coal. The sources said Shahrukh Khan presented a copy of scoping report (study) that was scheduled for submission in June, 2009.

He stated that he had forwarded the report to all concerned for their information and comments, if any. He further revealed that as a next step, they had initiated a programme for environmental and social baseline data collection, which would broadly cover the following areas:

-- Mapping and topographical data, study on land use, study on socio-economic situation and infrastructure, study on demographic and ethnological profile, settlement and household composition and design, local economy and household income and livelihood, social services infrastructure, physical infrastructure, natural resource management, governance and civil society, cultural property, flora and fauna, natural vegetation/plant life, animal life, climate, water, air quality and noise, geology, geomorphology soils, social-cultural heritage, landscape and visual character, seismicity and radioactivity.

Members of the delegation assured the government that after the grant of the mining lease, they would approach the PPIB for issuance of LoI within the prescribed timeframe and work on bankable feasibility would be carried out on fast track basis.

According to the sources, the Secretary of Mines and Minerals, informed the meeting that their scoping report would be placed before the technical committee and observations communicated in due course of time. The sources said that Oracle assured submission of technical report by November, 2009 and ESIA by February, 2010. "We are following the timelines as per memorandum of understanding (MoU) and would not lag behind, and if every thing goes as per plan we will be able to start mining operation in 2011," the sources quoted Oracle delegation as saying.

The Provincial Secretary informed the meeting that work on providing 250 cusecs water to Thar coalfields was in active consideration and preliminary report was expected within two months before preparation of PC-I for providing water from Chotiaryoon reservoir. Besides, the work on 500 KV transmission line and broad gauge railway line was also under active consideration of the concerned authorities.


----------



## Neo

*Water and power sector: CDWP likely to approve 25 projects today ​* 
ISLAMABAD (July 17 2009): Central Development Working Party (CDWP) of the Planning Commission is expected to recommend/approve 25 projects worth Rs 940.5 billion in water and power sector in its special meeting today (Friday). The government has allocated Rs 17.96 billion for these projects in PSDP 2009-10 that would be cleared by CDWP. Deputy Chairman Planning Commission Sardar Asef Ahmad Ali will chair the meeting.

According to the agenda for the special meeting available with Business Recorder, CDWP will consider construction of Diamer-Bhasha Dam project worth Rs 850 billion with foreign exchange component of Rs 297.825 billion. The government has allocated Rs 15 billion for the project in PSDP 2009-10.

According to the agenda, CDWP will consider 7 projects worth Rs 38.630 billion in water and power sector for Balochistan, 5 projects worth Rs 24.09 billion for NWFP, 5 projects worth Rs 21.6 billion in Sindh and 7 projects worth 5.7 billion in Punjab province. The government has allocated Rs 860 million for Balochistan projects, Rs 900 million for NWFP projects, Rs 500 million for Sindh projects and Rs 500 million for Punjab projects.

Projects of Balochistan include: Winder Dam project (Lasbela) costing Rs 2.535 billion, Rs 177.286 million Hingol Dam Project, detailed engineering design and tender documents (PC-II) Lasbela, Hingol Dam Multipurpose Project (Lasbela) Rs 16.382 billion including Rs 81.960 million FEC, Naulong Dam Project-detailed engineering design and tender documents PC-II (Jhal Magsi) Rs 185.960 million, Naulong Dam Project (Jhal Magsi) Rs 14.726 billion including Rs 16.567 million FEC, Pelar Storage Dam, Awaran, Balochistan Rs 2.754 billion, and Garuk Storage Dam, Kharan Rs 1.868 billion.

The NWFP projects are: Rs 230.162 million Construction of Mardan Khel Dam, District Karak, Construction of Ghol Banda Dam, District Karak Rs 279.431 million, detailed design of Sheikh Haider Zam & Chaoudwan Zam Dam Project (PC-II) Rs 53.547 million, Bara Multipurpose Dam Project, Khyber Agency Rs 20.651 billion including Rs 269 million as FEC, and Daraban Zam Dam Project Rs 2.879 billion.

The projects of Sindh are: Construction of Darawat (Baran) Dam on Nai Baran near Thano Bulla Khan in Distt Thatta/Dadu Sindh worth Rs 3.656 billion, Consultancy Services for Survey Investigations Detailed Design, Tender Documents and PC-is of 7 Dams in Kohistan Region, Sindh (PC-II) Rs 140.317 million, Nai Gaj Dam Project, District Dadu Rs 17.807 billion including Rs 414.490 million as FEC, Khadeji Dam Project. However, the agenda did not contain the total cost of Khadeji Dam Project and Sita Dam Projects.

The projects of Punjab follow as; Construction of Papin Dam, Distt Rawalpindi costing Rs 1.167 billion, Construction of Jamalwal Dam (Chakwal) Rs 289.301 million, Construction of Lawa Dam (Chakwal) Rs 425.767 million, Construction of Mohra Shera Dam Project (Rawalpindi) Rs 556.331 million, Construction of Mujahid Dam, Rawalpindi Rs 529.566 million, Construction of Ghabir Dam Chakwal Rs 2.164 billion and Construction of Kot Fateh Khan Dam, Distt Attack Rs 599.703 million with Rs 22.060 million FEC.


----------



## Hyde

*Construction of Japan Special Economic Zone to be started in September ​*
MUHAMMAD ALI

KARACHI (July 17 2009): Japan would commence construction of the Japan Special Economic Zone (JSEZ), *with an initial investment of $5 billion, in September.* Talking to Business Recorder on Thursday, Zubair Motiwala, Advisor to CM on investment said that the government of *Pakistan had offered some 1900 acres land for the purpose, in the vicinity of Port Qasim, 17km far from Pakistan Steel Mill.*

He said that the meeting, in this regard, was held on late May at Tokyo, Japan. Moreover, he said that the government would grant 10 years tax holidays to attract Japanese investors to invest in the land of opportunity. He said that Japan would initially invest around $5billion for the next five years to develop the infrastructure of JSEZ and added that the first phase of the project would be completed within next two years.

He said that the government of Pakistan had assured support in the construction of JSEZ to Japanese entrepreneurs. Motiwala further said that the zone would provide One Window Operations (OWP) and all utilities, except electricity, which would be generated by JSEZ to meet its requirements, would be provided by the Sindh government.

He said that the zone would have its security arrangements, shopping areas, Japanese restaurants, recreation spots, parks, health and sports activities so as to have a self sufficient Japanese village. He said that several manufacturing units, including Suzuki, Sony, Yamaha and Marubeni, were interested in establishing their units in the JSEZ.

He said that only 22 Japanese companies were engaged in Pakistan, however, 1400 companies had invested in Malaysia. He said that Pakistan offered the best incentives for investment, including 100 percent equity, free flow of money with remittance of royalty and technical fee. He said that the Sindh government was also establishing a Foreign Facilitation Fund (FFF), with an initial amount of $30million, which would gradually be raised to $60 million, to pull out foreign investors from any financial crisis.

Reactions: Like Like:
1


----------



## white_pawn

*New trade policy on July 29 ​*
ISLAMABD (July 19 2009): Commerce Minister Makhdoom Amin Fahim will unveil 2009-10 Trade policy on July 29 after the formal approval of the Federal Cabinet. "We are giving final touches to the trade policy, which will be placed before the Federal Cabinet on July 29," said one of the officials of the Commerce Ministry. A presentation would be given to Prime Minister Syed Yousuf Raza Gilani on July 24 instead of July 20 as was planned before, said the official.

"Most of the announcement of previous fiscal year could not materialise like in the past," said one of the officials of the Commerce Ministry on condition of anonymity. The sources said the Commerce Ministry would not recommend growth in exports more than 10 per cent during 2009-10 due to global economic slump, which meant the new target would not exceed 22 billion dollars.

Meanwhile, a spokesman of the Commerce Ministry said on Saturday that all visits of the Commerce Minister were directed to achieve better market access, besides image building of the country in the world community. Foreign visits were a requirement of some of the portfolios in the Cabinet and the Commerce Ministry was one of them, said the spokesman. The spokesperson further stated that draft of the trade policy had been cleared by the Commerce Minister after extensive deliberations with all the stakeholders and consultations with all concerned.

Business Recorder [Pakistan's First Financial Daily]


----------



## white_pawn

*Exporters' overdue proceeds: EFS facility extended up to December 31 ​*
RIZWAN BHATTI 
KARACHI (July 19 2009): Granting another six months extension, the State Bank of Pakistan on Saturday allowed exporters, whose export proceeds are overdue, to avail financing facility under Export Finance Scheme (EFS). Earlier on March 3, 2009 one-time waiver for 90 days was allowed by SBP for the purpose of availing financing under EFS to all exporters whose export proceeds were overdue as on December 30, 2008, valid up to end of March, 2009 had been extended up to June 30, 2009.

However, the central bank on Saturday granted another six months extension for repatriation of overdue export proceeds and now exporters whose export proceeds are overdue will now be allowed to avail financing facility under EFS up to December 31, 2009. In this regard SME Finance Department of the central bank on Saturday issued SMEFD Circular Letter No 10 and instructed bank to facilitate the exporters with new waiver.

SBP said that new waiver has been granted on the representations made by various exporter associations and with current waiver overall exporters have to avail some nine months extension during the current year 2009. SBP has made it clear that another waiver will also be applicable in case of the exporters who have subsequently shipped additional consignments to the same importer or its associated company from whom export proceeds were overdue.

However, this relaxation will not be allowed where the payment in respect of shipments has been stuck up on account of discrepant documents, or failure of the exporter to ship the goods in accordance with the requirements of the importer, provided shipments so made and discrepant documents so sent have been accepted by the importer abroad.

It may be mentioned here that at present over 800 million dollars export proceeds are overdue for last few years. Meanwhile, Dr Ikhtiar Baig, Federal Advisor on Textiles assistance has appreciated SBP step and said that exporters were facing same difficulties due to the non-availability of export refinance under EFS. He said that due to global meltdown the exporters are facing repatriation of export proceeds, but we assured government and SBP it is only delay not a default.

Business Recorder [Pakistan's First Financial Daily]


----------



## white_pawn

*CM says solar energy project to boost industrialisation ​*Saturday, 18 Jul, 2009 | 11:14 AM PST | 

HYDERABAD: Efforts are under way to exploit solar energy, and also the Thar coal reserves, to overcome shortage of electricity. 

The solar energy project, besides providing electricity, would boost industrialisation in the province, said Sindh Chief Minister Syed Qaim Ali Shah. 

A meeting was held on Thursday night in this regard with the management of a company that showed interest in the solar power project, while the government was keen on establishing plants in each district with a capacity of 50 MW each, the chief minister said.

Thar coal reserves were being utilised with a view to ridding the country of loadshedding within the shortest possible time, he said. 

He categorically stated that the government would not compromise on the rights of Sindh which was evident from the firm stand it took regarding the Kalabagh Dam, implementation of 1991 Water Accord, the NFC Award and ownership of Thar coal. 

He wondered as to what kept the nationalists mum over the influx of outsiders during the reign of dictators. 

The services PPP was providing would nullify the tactics of anti-democratic elements in misguiding and blackmailing people of Sindh, he said. 

The PPP took reigns at a time when the world was passing through economic recession and even developed countries were laying off millions of people but the government not only sustained the pressure rather opened up employment opportunities for over one hundred thousand youth, said the chief minister. 

He assured of restoring the jobs of those retrenched from the national institutions.

Presently, some 41,000 youths were being provided training along with stipend in different trades and professions and on completion would be absorbed, he said adding that another 70,000 would benefit this year under the Benazir Bhutto Youth Development Programme. 

Reflecting on budgetary allocations, the Chief Minister said that Rs55 billion had been earmarked for development works and Rs2.5 billion for the prevention and treatment of hepatitis. 

He said that 100 per cent increase were effectuated for education sector wherein incentive money for girl students raised to Rs2,400 per annum from Rs1,000, and in Thar to Rs3,400. 

Plans to provide milk and biscuits to school children were under way for keeping them healthy, he said. 
The government was paying thrice the salary amount to doctors performing welfare services in the desert and backward areas, he added. 

The Sindh Chief Minister was speaking as the chief guest at the 16th Death Anniversary of Shaheed Dr Mohammad Ismail Odhejo organised by Shaheed Dr Mohammad Ismail Odhejo Memorial Committee in collaboration with the PPP District Badin, in Matli on Friday. 

He lauded the services of Dr Mohammad Ismail Odhejo and said that he was a talented member of his cabinet, sympathetic to the poor and a true PPP worker. 

The CM announced a development package for Matli. Earlier, he visited the grave of Dr Mohammad Ismail Odhejo and offered Fateha. 

The Sindh Home Minister Dr Zulfiqar Mirza, Sindh Minister for Local Government Agha Siraj Durrani, MNA Mahesh Malani, District President PPP Badin Dr Sikandar Mandro, Ex-District Nazim Badin Kamal Khan Chang and Saleem Odhejo, son of Dr Mohammad Ismail Odhejo eulogized the services of Dr Mohammad Ismail Odhejo.

DAWN.COM | Provinces | CM says solar energy project to boost industrialisation


----------



## white_pawn

*Activity at Karachi and Qasim ports​*RECORDER REPORT 
KARACHI (July 19 2009): The Karachi Port handled 134,338 tonnes of cargo including 100,222 tonnes import and 34,116 tonnes export cargo including 1,586 empty and loaded containers during last 24 hours ending at 0700 hours on Saturday. The cargo comprised of 63,314 tonnes dry cargo including 46,742 tonnes general cargo; 9,200 tonnes coal; 7,132 tonnes cement and 71,024 tonnes oil/liquid cargo.

Four ships namely Flag Investors, Champion Trader, Arnis and Hyundai Baron sailed out to sea during the report period. Six vessels viz Caribbean Carrier, Quetta, Arnis, TS Dubai, Queen Arrow II and Ninos are currently at the berths. Three ships namely Addarraq, Queen Arrow II and Quetta expected to sail on Saturday, while two vessels viz TS Dubai and Thuringia Express are expected to sail on Sunday.

Five vessels viz Bow Spring, Al-Ihssa, YM Asia, Hanjin Ningbo and Mazin Arab due to arrive on Saturday, while eleven ships namely Al-Marwah, Royal Peridot, Gulf Tiger, Dorian, Thomas Mann, Silver Craft, World Trader 1, Thor Wind, SD Nova, Guan He Kou and Yuan Cheng are due to arrive on Sunday.


PORT QASIM
A total cargo volume of 60,095 tonnes comprising 45,394 tonnes import and 15,511 tonnes export inclusive of containerised cargo carried in 2,124 containers (TEUs) was handled during last 24 hours on Saturday. The cargo comprised of 29,766 tonnes furnace oil; 973 tonnes sugar; 1,847 tonnes cement and 28,419 tonnes containerised cargo.

Oil tanker MT Iron Monger-5 sailed out to sea on Saturday morning while container ship namely Maersk Novazzano is expected to sail on the same day. A total of four vessels viz Indradi, Al-Ihsaa, Al-Salam-II and Nova Noor carrying chemicals, containers, diesel oil and cement are currently at the outer anchorage.

Six ships namely CV Maersk Novazzano, CV MSC Magali, MV Rimar, MV Andinet, MT Pearl-K and MT Iron Monger-5 are currently occupying berths to load/offload containers, cement, sugar and furnace oil respectively during last 24 hours. Two ships namely MT Al-Salam-II and MT Indradi carrying diesel oil and chemicals are expected to take berths at Fotco Oil Terminal and Engro Terminal respectively on Saturday.

Two vessels viz MT Oriental Oki and MT SC Haikoo with chemicals and palm oil due to arrive on Saturday, while five ships namely MT Sea Sky, MV Cemtex Orient, MV Terrisha, CV CMA CGM Quatz and CV Maersk Missouri are due to arrive on Sunday.

Business Recorder [Pakistan's First Financial Daily]

---------- Post added at 05:43 PM ---------- Previous post was at 05:42 PM ----------

*Work on Northern Bypass to start soon: minister ​*PESHAWAR (July 19 2009): Federal Minister for Communication Dr Arbab Alamgir Khan Khalil on Saturday said that work is soon going to start on Northern Bypass and the Federal government has sanctioned an initial sum of Rs 2 billion for the project. For the initial phase of this important highway, a seven-km of land has been procured, he said while addressing a press conference here.

The Minister said that the meeting between President Asif Ali Zardari and Mian Muhammad Nawaz Sharif is a welcome development and a good omen for democracy, adding that the present democratic government is taking all democratic forces along for the sake of democracy and the country.

The Minister said that the government is working for the rehabilitation of the areas affected by terrorism. He said that unprecedented increase in population has increased our problems many times over, but in spite of all this, the government is utilising all its resources to solve people's problems.

While answering a question, the minister said that the meeting between the President and Nawaz Sharif is part of the democratic tradition. "The present democratic set-up is the most precious gift to our nation by Shaheed Mohtarma Benazir Bhutto and in line with her mission the government intends to solve all issues through parliament", he maintained.

Dr Arbab Alamgir said that the government with the strong support of Pakistan Army, has been able to overcome all crises one by one and after eradication of militancy, the repatriation of the affectees of Swat and Malakand is in full swing and life will be back to these areas in its full colours.

The minister said that the roads and bridges destroyed in Swat by the cowardly acts of terrorism will be rehabilitated and a sum of Rs 500 million has been provided to FWO for the purpose. Replying to a question, Dr Arbab Alamgir acknowledged that load-shedding is a serious problem because neither any dam was built in the country for the last 20 years neither any mega project was started in this regard and maintained that construction of new dams in indispensable to get rid of load shedding.

The minister said that the Luwari Rail Tunnel is a project of immense importance and work will soon resume for its early completion because they want to ensure Chitral's link with the rest of the country throughout the year. Dr Arbab Alamgir Khan Khalil said that they are also working on Southern Bypass so that traffic load from Kohat could be shared and for the purpose Rs 10 million has been provided to the concerned authorities for road from Kohat to Takhtabeg.

On this occasion, the Federal Minister issued instructions to GM NHA, NWFP Region Yousaf Ali to pay attention to the construction of road from Kohat to Darra Adma Khel and due consideration should be given to the quality of this important highway. The minister said that one of his prime responsibilities is to serve people of his constituency NA-2 and he is determined to provide gas and electricity to each and every locality and street of this constituency.

The Federal Minister urged the media to lend a helping hand to the government to solve peoples' problems. Later on, the minister made a detailed tour of his home constituency and inaugurated gas supply schemes in a number of localities and issued immediate instructions on applications submitted to him by the people.

Business Recorder [Pakistan's First Financial Daily]


----------



## Hyde

Since NEO is here no longer with us, i think i should take a charge now and keep posting the good stuff here?

Lo gi Insha'Alalh from today i am going to post economic news and continue the work of NEO until he is back  hopefully


----------



## Hyde

*Pakistani, Kashmiri expatriates urged to invest in Pakistan​*
ISLAMABAD (July 22 2009): AJK President, Zulqarnain Khan, has called upon Pakistanis and Kashmiris living abroad to invest in the projects of alternative energy, tourism and hydel, saying that these sector offer immense business opportunities in Pakistan. He commended the valuable contributions of Pakistani and Kashmiri expatriates, and said that they were playing a pivotal role in the progress and prosperity of their country.

Addressing a reception in New York, he urged the international community and other human rights organisations to stop India from committing genocide of innocent Kashmiri people in the Occupied Valley. He asked the world to act upon UN resolutions, international norms with regard to holding plebiscite in IHK and human rights violations.


----------



## Hyde

*Punjab offers many incentives for foreign investors ​*
LAHORE (July 22 2009): Consultant to Chief Minister Punjab on Economic Affairs Pir Saad Ahsanuddin said that the Punjab government was providing a conducive and business-friendly atmosphere to foreign investors, and that the province had plenty of potential, resources and opportunities for foreign investors. He was talking to a three-member delegation of Exim Bank, Malaysia, here on Tuesday, disclosed an official.

Pir Saad Ahsanuddin said that the government was in contact with foreign ambassadors, diplomatic missions and business icons of other countries so that foreign investment could be enhanced in the province. "Trade policies of the early 90's, when Mian Nawaz Sharif was the Prime Minister, were still being implemented," he added.

He told the Malaysian delegation that as the largest of the four provinces, Punjab enjoyed 60 percent share in the GDP and, like wise, was in a position to provide better options and opportunities in many fields, like energy, agriculture, industry and livestock, for foreign investors.

He said that economic co-operation between Muslim countries was the need of the hour, to benefit from reciprocal experiences. Pakistan, as the largest Muslim country, had many attractions for Malaysian investors. Members of the delegation, while lauding the steps taken by the government, stated that Malaysia wanted to invest in water treatment and other sectors.


----------



## Hyde

*Three-year trade policy: Commerce mulling 25 percent growth in exports ​*
ISLAMABAD (July 22 2009): Commerce Ministry is *said to be proposing 25 percent growth in exports in three years in Trade Policy 2009-12*, which was discussed with top representatives of industry and business community here on Tuesday. A consultative meeting was held with key chambers of commerce and industry, including FPCCI, KCCI, LCCI, ICCI, RCCI, FCCI and SCCI, under the chairmanship of Commerce Minister Amin Fahim.

Advisor to Prime Minister on Petroleum, Dr Asim, was also present in the meeting. Commerce Secretary Suleman Ghani and Joint Secretary Exports Azhar Ali briefed the participants about exports' encouraging measures being proposed in the first ever three-year Trade Policy to be announced on July 29.

*"Commerce Ministry has projected 5 percent growth in exports during 2009-10, followed by 10 percent in 2001-11 and 2011-12. This means that exports target for the current fiscal year will be around $19.5 billion,"* said one participant while talking to Business Recorder exclusively.

Participants spent most of their time on energy crisis in the country due to which industry is shutting down and rendering workers jobless. Sources said that representatives of chambers were of the view that the government should encourage power self-generation for the industry and, in this regard, Commerce Ministry must announce subsidy for machinery import.

The government is also considering to penalise power distribution company (discos) for not supplying power to the industry as per the agreement signed at the time of connection. Other main proposals which came under discussion were establishment of a hedge to suck up any revision in interest rate, insurance of foreign buyers, subsidy on inland freight charges and credit availability for the industrial sector, sources said.

One Commerce Ministry official, who was present in the meeting, confirmed that incentives for petrochemical industry are included in the Trade Policy. Performance of foreign missions was also part of deliberations, and Commerce Minister promised to convene another meeting to discuss this issue. Sources said that some businessmen wanted ban on import of Indian drugs, but the Commerce Secretary turned down the proposal with the argument that import of drugs was part of positive list, which Pakistan cannot change.

Giving argument against the proposal, Secretary Commerce said that when the businessmen import Indian goods through Dubai illegally they do not make hue and cry, and if something is coming through legal channels they are raising objections.

In his opening remarks, Commerce Minister said that for the first time extensive consultations were held with all chambers and associations to get maximum input in the formulation of Trade Policy. Secretary Commerce told the meeting that a broad guideline was given to the chambers and associations, on which proposals and suggestions were sought.

According to Secretary Commerce, the Ministry received more than 1,000 proposals and suggestions and all were processed to incorporate them in the draft of Trade Policy. He briefed the participants regarding main features of the policy that is, it would be a strategic framework document for three years. The policy aims to improving competitiveness on micro level and sectoral level. It asks for achieving higher level of sophistication.

According to an official statement, representatives of chambers were of the view that a prompt solution to power problem is eminent. President of Islamabad Chamber appreciated the efforts being done by the Ministry in formulation of trade policy, and appreciated the idea of introducing the policy for 3 years' term.

He was of the view that all initiatives of the policy needed coherent co-ordination with respective ministries. Commerce Minister, whose presence in this Ministry is also doubtful, assured the participants that he would personally oversee implementation on the measures to be announced in the Trade Policy.


----------



## Hyde

*Govt to take 3,300 MW power plants on rent​*
KARACHI: Government has planned to take power plants having 3,300 MW capacity with a view to ease the energy crisis in the country.

Most of the plants will operate on furnace oil, therefore, 2.8 to 3.3 million tonnes of additional furnace oil will have to be imported. This quantity forms one third of the countrys total demand of furnace oil.

These plants will begin their operations in the next 6 months.


----------



## Hyde

*Pakistan, Tajikistan sign joint protocol​*
ISLAMABAD: Pakistan and Tajikistan on Tuesday signed a joint protocol at the end of Pak-Tajik Joint Economic Commission (JEC) meeting for further cooperation in many areas.

The protocol was signed by Minister for Water and Power Raja Pervez Ashraf and Tajik Minister for Energy and Industry Gul Sherali.

Both sides decided to establish Joint Business Forum between the business community of both countries. Tajik Government invited businessmen from Pakistan to participate in exhibition in Dushanbe to be held in late part of this year.

Both sides agreed to sign the Preferential Trade Agreement (PTA) 2009.

To facilitate trade between the two countries Tajik side offered warehouse facility to Pakistan at Panji Poyon and requested for similar facility for Tajik business community at Gwadar Port. Pakistani side noted the request for further action.

Both sides agreed to implement on fast track the Project Electricity transmission line between Tajikistan, Afghanistan and Pakistan, (CASA 1000).

Pakistan side offered training facilities to Tajik Geo-scientists and technicians in the field of Instrumental analysis in the Geo-science.

Pakistan side offered 10 seats for Tajik students in the field of Information Technology at National University of Modern languages.

Pakistan side also informed that National University of Science and Technology of Pakistan NUST is exploring the possibility and formulation of tangible projects for enhancement of cooperation with Tajikistan. The Tajik side will be kept posted of the progress in due course of time.

Both governments agreed to the proposal to transport arrangements between the two countries through an agreement. The agreement is expected to be finalized soon.

To activate air transport both sides agreed to hold early talks in the last week of August, 2009 in Dushanbe for conclusion of a fresh air services agreement.

Moreover, both sides agreed for early finalization of agreements included MoU on cooperation in field of public health, MoU on Pharmaceutical, Cultural Exchange Programme (CEP) for next two years 2010-2012, MoU for cooperation in the field of sports, MoU on expansion of cooperation in the field of agriculture and food industry and establishment of a Working Group on livestock.

Both the parties have agreed to enhance cooperation between national tourism bodies, respective enterprises and associations of both countries.

Both side also agreed for the formation of the Working group that will promote the investments in the hotel and tourism in Pakistan.

In order to implement the MoU signed between the two countries on Combating against narcotics/drugs, both sides agreed to make arrangements of posting of drug liaison offices in their respective embassies for quick information sharing within one month.

Pakistan side offered package to Tajik side to further ease the terms of credit amounting to US $ 13 million extended by Pakistan, keeping in view the economic difficulties of Tajikistan due to recent recession and close relations with them.


----------



## Hyde

*DHA Cogen Plant to be online by August​*
KARACHI: The much delayed DHA Cogen Power and Desalination Plant, located in Karachis Defence Housing Authority, will be online by August, DHA Administrator Brigadier Khalid Tirmizi told The News on Tuesday.

*The 80-megawatt gas-fired plant was slated to start production earlier this year but was delayed owing to a number of reasons.
*
This announcement has been welcomed because of the ongoing power crisis in Karachi, where rioters have damaged property worth millions of rupees over the past couple of days following a major power outage. The outage came on the heels of a record downpour in Pakistans largest city on Saturday, which left civic services in a mess.

Brigadier Tirmizi said the fact that the plant has been brought back on track has to do with the efforts made by officials as well as all stakeholders. We wanted to show that the project would succeed. And I am happy to say that Secretary Defence, the Corps Commander and senior officials of the Water and Power Ministry have played a vital part.

Apart from a shortage in power generation capacity, Karachis local power utility also suffers from an outdated power transmission and distribution system. Enhancement of local power generation facilities is being seen as a step towards improving the power situation in the country in the coming years.

However, negotiations still have to be finalised with the Karachi Electric Supply Company over the sale of power from the plant to the utility. Brigadier Tirmizi said negotiations with Sui Southern Gas Company had been completed and now the plant was entering its testing phase.

It may be recalled that DHA Cogen is the first power and water project of its kind in the country. It started supply of water and electricity to people of Karachi in April 2008. DHA Cogeneration Plant is a project undertaken as a joint venture with foreign investment.

In June 2008, AEI Asia Limited (Hong Kong), a subsidiary of Ashmore Funds (USA), acquired a controlling interest in DCL. The group operates in more than 20 countries.

DHA Cogen Limited (DCL), which was supplying three MGD water to the city and 80 MW of electricity to KESC since April 2008, stopped working owing to a technical fault. The plant stopped power production after strong recommendations by Siemens Pakistan, the project designer, which investigated some technical problems in the gas turbine.

The plant was to provide three million gallons of water per day to residents of Defence and Clifton, and 80 megawatts power to the Karachi Electric Supply Company (KESC).

Earlier this year, banks agreed to provide 50 per cent of the plants repair cost after the contractor asked for an extra $10 million for repair and revival of the plant. This was the bone of contention between the contractor and the operating company.

Under a deal worked out with banks, the remaining 50pc extra cost would be borne by DCL, a company in which the Defence Housing Authority has a stake.

The executive board of DHA was briefed in January 2009 that the plant, which fell into disrepair on September 12, 2008, would restart its functioning by early March after repair and replacement of its damaged parts. This date has now been moved to August. Under the second phase of the plant, power production will be enhanced to 105 MW while desalination of water will rise to 5 MGD.


----------



## Hyde

* Rental plants - a short-term solution to power shortage​*
ISLAMABAD: Pakistan Electric Power Company Managing Director Tahir Basharat Cheema stunned the nation the other day when he said power shortage would not be completely removed by December this year.

This strengthened the talk that many rental power plants, which are part of a fast-track plan to eliminate the power deficit of 3,500 megawatts, are still on papers and no work has started at all. But in advertisements published in leading newspapers recently, PEPCO claims it will be able to eliminate the power deficit. Many rental power plants will not be able to come on stream by December this year as the government has failed to make down payment to various companies. This may leave a power deficit of 1,200 to 1,500 megawatts in December.

Walters rental project of 205MW and Karkey rental project of 232MW, scheduled to be commissioned in June this year in Karachi, have been delayed because the government has failed to make initial payments.

Besides the two plants, Independent Power project of 200MW, scheduled to come on line in August in Gojra, Cavaliar Energy project of 156MW at the Port Qasim, Progas Energy plant of 210MW, expected to start working in August and Ruba Energy project of 107MW at Gujranwala, expected to come on stream in December, are likely to face further delay because of no downpayments due to which the companies have not been able to open letters of credit.

Likewise, Bhikki (Halmore) power project of 150MW is also likely to be delayed and may not come on line by December this year. Muridiki (Sapphire) power plant of 225MW, scheduled to come on stream in October, is also likely to be delayed as so far no steam turbine has been imported. HRG machine has gone out of order during its transportation. A rental power plant of 225MW at Ballocki has also run into snags as its EPC contractor from the Czech Republic has abandoned the project due to non-payment.

Guddu project of 110MW, expected to come on stream in October, is also very much delayed as machinery and plants have not so far been brought from abroad. This plant will start functioning in March 2010 if the machinery lands in Pakistan by October as some payments for the plants have been given to the seller. However, if the elected government wants to restore its credibility, it has no option but to install rental power plants as these can start generating electricity within a short span of four to six months. But it requires a will, availability of finances and assurance of reasonable tariff to the companies, which want to facilitate the government by installing the rental power plants.

No doubt it is a very hard choice for the government. Earlier, the Musharraf government did not take any step to ensure hydrogenation, coal-based electricity and even did not explore alternative areas to generate electricity keeping in view future needs of the country.

Former finance adviser Dr Salman Shah, who worked with the previous government, has also admitted that the then government failed to match electricity generation with increasing demand. The government should support the companies which are keen to install rental power plants. This model is employed in many countries around the world including Bangladesh, Sri Lanka, US, UK, Iraq, India, Kuwait and Turkey.

The government should explore every source of electricity including rental, independent power producers (IPPs), solar, hydropower and nuclear, but ensure the electricity mix at affordable prices. Some experts oppose rental power plants on the ground that their tariff is so high, but there is no other option as hydropower, wind power and coal power projects take years to complete. Power tariffs of many rental power plants are reasonably lower than the IPPs, which are also in the pipeline.

The power deficit is not only inflicting injury to the economy, but also increasing unemployment as many textile and steel-related industries have almost been closed.

Keeping in view all these, the government should come forward and immediately make down payments so that the rental power companies which had made contracts with the government in 2008 could bring their machinery required for the power plants.

The government needs to go one step forward and allow the rental power plants of General Electric and Siemens of 2005, 2006 and 2008 model, which are lying in China. Beijing is encouraging rental power plants because of many other sources of generating electricity. Pakistan can benefit from the opportunity and allow private parties to import the second hand rental power plants, which are in excellent condition. There is some impression that kickbacks and bad deals are always involved, but these apprehensions should be erased as the rental tariff is arrived at through a competitive bidding process.


----------



## Hyde

*Benazir Mass Transit Train Programme: Zardari directs Railways to expedite project 
*​ISLAMABAD (July 23 2009): President Asif Ali Zardari has directed the high ups of Pakistan Railways to expedite implementation on the project of Benazir Mass Transit Train Programme for twin cities of Rawalpindi and Islamabad. Pakistan Railways should make early finalisation of cases for procurement of engines and coaches to overcome its operational problems, the President said.

While addressing a briefing by Pakistan Railways on revamping of railways. Secretary Railways Sami ul Haq Khilji briefed the President and other participants of the meeting. The President advised to form a committee headed by Secretary Railways including representative of Capital Development Authority (CDA), Rawalpindi Development Authority (RDA) and provincial government.

He noted that it is time to make a serious review of the railways that has accumulated losses of over Rs 40 billion in the past three years and more than half of its rolling stock was overage and unserviceable. President Zardari called for an integrated policy on transportation sector and a workable plan for brining railways back on track. He asked the government to prepare plans to reorient railways from a traditional passenger service handicapped by public sector constraints to a major cargo transportation business operating on commercial lines.

The meeting was attended by Minister for Railways Ghulam Ahmed Bilour, Secretary General to the President M Salman Faruqui, Deputy Chairman Planning Commission Sardar Aseff Ahmed Ali, Secretary Finance Salman Siddique, Secretary EAD Farrukh Qayyum and senior government officials. Former Secretary of Railways and long retired from service Naseer Ahmad was also invited to give his suggestions.


----------



## Hyde

*Industrial policy to be finalised soon: Durrani ​*LAHORE (July 23 2009): State Minister for Industries and Production Dr Ayat Ullah Durrani said that the government had decided to build a strategic reserve of 250,000 tons of fertilisers to check its shortage during the current season. Talking to media persons after a meeting at the office of the National Fertiliser Corporation (NFC) here on Wednesday, he said that strategic reserve stock would be in addition to the country's total requirement.

Elaborating, he said that the country needed three million tons of fertilisers for the Kharif season. 'We are 500,000 tons short of the total demand,' he said and added that 400,000 tons of fertiliser had already reached Gwadar and the Karachi ports. Out of this, total imported fertiliser, 164,000 tons had reached Karachi and the rest had been off-loaded at the Gwadar port. He said that another ship, loaded with 60,000 tons of fertilisers, would soon reach the country.

He also disclosed that 70 percent of the total imported fertilisers would go to Punjab, 20 percent to Sindh, 8 percent to NWFP and two percent to Balochistan. He also said that the Federal government, on the advice of the provincial governments, would ensure the supply of fertiliser in the areas where it was needed.

He said that the NFC had appointed over 600 dealers in the country, out of which 439 were in the Punjab. He said that this distribution network had been established to avoid the problems vis-a-vis the selling of the fertiliser on government-announced rates in the past. He also warned the hoarders to avoid their immoral tactics and assured them that the government would take strict measures to snub this tendency.

He said that NFC officials also had a meeting with the Chief Minister Punjab and assured them of the full support of their organisations and the National Fertilisers Marketing Limited (NFML) in meeting the fertiliser requirements of the province.

To a query, he said that the Industrial policy would be finalised in a month or two to come. Talking about the demand for new provinces, he said that those talking about creating new provinces, wanted to get political mileage from it. He said the PPP was working to give maximum autonomy to the provinces, which would bring prosperity. He also said that the Baluch people were not against the Punjab, but that the province had been neglected during the last 60 years.

To a query, he said that a foreign hand was involved in creating a law and order situation in Balochistan and Prime Minister Gillani had already conveyed Islamabad's concerns to his Indian counterpart, during a recent meeting. Rehman Malik had also taken up this issue with the Afghan President Hamid Karzai, who also assured looking into the issue.


----------



## Hyde

* Manila gets lowest rice offer from Pakistan, Thailand
​*Thursday, July 23, 2009
MANILA: The Philippines is likely to buy 75,000 tons of milled rice from Thailand and Pakistan after Wednesdays tender and will probably purchase 200,000-300,000 tons more for the rest of the year, traders said on Wednesday.

Three rice suppliers offered the lowest prices of the 25 per cent broken grade from Thailand and Pakistan at a government tender on Wednesday, the first by the worlds largest importer this year.

Global trading firm Toepfer International made the lowest offer of $472.72 per ton, C&F, for 10,000 tons of rice from Pakistan.

The second lowest offer was from Thai Hua Ltd, which offered to supply 18,000 tons at $486.28 per ton. Asia Golden Rice gave the third lowest offer of $487 per ton, for 50,000 tons, C&F, of which only 47,000 tons may be awarded. Both firms will source rice from Thailand, the worlds biggest exporter of the grain.

Reactions: Like Like:
1


----------



## Hyde

*KSE rushes above 7,800 points to hit 3-month high​*
Thursday, July 23, 2009
By our correspondent

KARACHI: The steadily rising Karachi stocks market eventually saw the benchmark KSE -100 share Index breach through the 7,800 points level on Wednesday. Market successfully crossed this hypothetical level after staying below this mark for the last three months.

With a moderate gain of 20.58 points or 0.26 per cent, the KSE 100-share Index closed at 7,802.81 points - the three months high level. The parallel running junior 30-Index moved up by 12.88 points or 0.15 per cent and settled at 8,395.88 points.

The chief 100-Index slipped below the 7,800 points level on April 22 this year. On April 21, the market had closed at 7,834.14 points.

Beside active participation of locals, the foreign portfolio investors also injected a handsome amount of $2.79 million on the local bourse in this session, according to NCCPL.

The margin hunters did not miss the chance of booking profits at the available levels, which caused a number of blue chips to close in negative column. The closing of a few heavy weight front line stocks in positive column helped market stay high.

The giant oil & gas exploration company, Oil & Gas Development Company remained the highest point generator in the 100-Index. This scrip alone included 22.34 points in the said Index followed by Habib Bank, which added notably another 13.57 points.

The other notable stocks, which managed to maintain in green territory include DG Khan Cement, Lucky Cement, United Bank, Adamjee Insurance, Pakistan Telecommunication Company, Pak Oilfields, Pakistan State Oil, Attock Refinery and EFU General Insurance.

The Fauji Fertilizer Bin Qasim also closed in red despite of the fact that it announced to pay 50 paisa per share to their holders as first interim dividend for the half ended on June30.

The two-way trading helped market generate 46 per cent higher turnover at 213.9 million shares against 146.1 million shares changing hands yesterday on ready board. The future market maintained its lull.

Market capitalisation noted an inflow of six billion rupees and stands at Rs2,297 billion.

Ahsan Mehanti at Shahzad Chamdia Securities said that positive activity witnessed in market, as it was expecting SECP to introduce the future deliverable contracts at KSE from next week.

Rise in international oil prices to $65 per barrel, stability in rupee value in parity with dollar and expectation of significant reduction in discount rates this weekend altogether played catalyst role for positive activity in result announcement session, he added.

Moreover, the reason behind activation of a greater number of securities on board, which was 421 today, was the result of allowing of a single lot share in the market. This means that the Exchange has allowed the trading of even one share of any company through electronic trading system from Tuesday, July 21, which earlier was not allowed.

Therefore, out of total 421 actives, 203 stocks declined, 200 stocks advanced, while the value of remaining 18 actives closed unchanged.

Highest volumes were witnessed in DG Khan Cement at 19.7 million closing at Rs37.73 with a gain of 30 paisa, followed by JS Company at 17.8 million closing at Rs26.71 with a gain of 87 paisa, Oil & Gas Development Company at 15.8 million closing at Rs89.53 with a gain of Rs1.38, Lucky Cement at 12.2 million closing at Rs71.64 with a gain of Rs1.58, and United Bank at Rs11.4 million closing at Rs45.78 with a gain of 40 paisa.


----------



## Hyde

*25pc duty on potato imports from India stays​*
ECC body expects supply to improve with Balochistan crop by July-end

Thursday, July 23, 2009
By Aftab Maken

ISLAMABAD: A federal minister on Wednesday blocked the ministry of commerces proposal to abolish 25 per cent regulatory duty on potato imports from India, a participant of a meeting told The News.

Potato prices in the local market have registered a phenomenal surge after the Economic Coordination Committee (ECC) of the cabinet imposed 25 per cent regulatory duty on its imports from India in January 2009 on the request of the Ministry of Industries and Production.

Chairing a meeting of the ECC sub-committee to review the prices of essential food items, Federal Minister for Food and Agriculture Nazar Mohammad Gondal discussed the current price trends in view of the upcoming month of Ramazan.

The meeting stressed the need for continued and ensured availability of essential food items to common consumers at affordable prices without compromising the interest of local producers and farmers and decided to see a rational mechanism for enhancing supply through imports, says an official announcement by the Ministry of Food and Agriculture.

The committee would ask the Trading Corporation of Pakistan (TCP) to bring more sugar stock in the market and the State Bank of Pakistan (SBP) would be asked to ensure sugar manufacturers release further stock in the market, said the statement.

The committee decided to increase supply of potatoes, especially to the weekly bazaars from the storage. The supply would be closely monitored, it added.

The statement further said that the committee observed that potato supply would improve after the arrival of fresh crop from Balochistan which was expected by the end of July and subsequently from Sindh. Therefore, the need for import was not considered necessary.

The committee reviewed the surplus stock position of moong pulse. However, keeping in view the arrival of Ramazan the committee decided not to recommend the export of moong pulse at least until the end of the month, the statement said.

Although there is an usual increase in the consumption of dates in Ramazan, the current supply status of dates does not warrant imports. However, the supply will be closely monitored and the import will be allowed if necessary without hurting the interest of date growers, it said.

To ensure sufficient supply, in view of increased consumption in the month of Ramazan it was decided to recommend the ECC for duty-free import of lemon, said the statement.


----------



## Hyde

*Nespak secures 97 projects in fiscal year 2009 ​*
LAHORE (July 23 2009): National Engineering Services Pakistan (Nespak), a state organisation of consulting engineers and architects, has secured a record 97 new projects at home and abroad during FY09 costing Rs 6.5 billion, managing director Asad I A Khan said this on Wednesday.

Major overseas projects acquired by Nespak during the year include Ganges Barrage Project in Bangladesh and roads & power projects in Oman and Saudi Arabia. Khan also said that Nespak is now working on 329 engineering projects in Pakistan and 71 projects abroad. He further said that they have extended top quality architectural and engineering services in 35 countries in the Middle East, Central Asia and Africa where Nespak is considered as an ambassador of Pakistan because of its top quality professionalism.

New projects acquired in Pakistan include New Gwadar International Airport Lahore and Peshawar Airport Extension, Elevated Expressway, Rawalpindi; Improvement of Karakuram Highway from Raikot to Khunjrab (335 km), Lahore Rehabilitation Project (PhaseII), Peshawar Northern Bypass, Zarghoon Housing Scheme, Quetta, Punjab Irrigated Agriculture Investment Programme, Rehabilitation and Upgradation of Balloki Barrage and Lower Bari Doab Canal System, bridge construction over River Sutlej at Amenwala, 425MW Combined Power Plant at Nandipur, Load Despatch System Upgradation Project; Prime Minister's package for Water Supply and Sewage Treatment Plant for Multan City and some projects in Azad Kashmir.

Reactions: Like Like:
1


----------



## ajpirzada

im glad to see NESPAK workin overseas as well.


----------



## TopCat

Mr X said:


> *Nespak secures 97 projects in fiscal year 2009 ​*
> LAHORE (July 23 2009): National Engineering Services Pakistan (Nespak), a state organisation of consulting engineers and architects, has secured a record 97 new projects at home and abroad during FY09 costing Rs 6.5 billion, managing director Asad I A Khan said this on Wednesday.
> 
> Major overseas projects acquired by Nespak during the year include *Ganges Barrage Project in Bangladesh* and roads & power projects in Oman and Saudi Arabia. Khan also said that Nespak is now working on 329 engineering projects in Pakistan and 71 projects abroad. He further said that they have extended top quality architectural and engineering services in 35 countries in the Middle East, Central Asia and Africa where Nespak is considered as an ambassador of Pakistan because of its top quality professionalism.
> 
> New projects acquired in Pakistan include New Gwadar International Airport Lahore and Peshawar Airport Extension, Elevated Expressway, Rawalpindi; Improvement of Karakuram Highway from Raikot to Khunjrab (335 km), Lahore Rehabilitation Project (PhaseII), Peshawar Northern Bypass, Zarghoon Housing Scheme, Quetta, Punjab Irrigated Agriculture Investment Programme, Rehabilitation and Upgradation of Balloki Barrage and Lower Bari Doab Canal System, bridge construction over River Sutlej at Amenwala, 425MW Combined Power Plant at Nandipur, Load Despatch System Upgradation Project; Prime Minister's package for Water Supply and Sewage Treatment Plant for Multan City and some projects in Azad Kashmir.



There is no Ganges Barrage project in Bangladesh. Only Padma(Ganga) bridge which is over 6 KM long going on right now and consultancy is offered to a Newzealand company.


----------



## Hyde

iajdani said:


> There is no Ganges Barrage project in Bangladesh. Only Padma(Ganga) bridge which is over 6 KM long going on right now and consultancy is offered to a Newzealand company.



It is man 



> Development Design Consultants (DDC), a Bangladeshi concern, will take the project to the drawing board with some assistance from Australian, Chinese and *Pakistani consultants.
> *
> Ganges Barrage in sight of drawing board :: Bangladesh :: bdnews24.com ::


----------



## Hyde

*500 MW electricity added to national grid: Pervez Ashraf​*
Updated at: 1824 PST, Friday, July 24, 2009
500 MW electricity added to national grid: Pervez Ashraf ISLAMABAD: Minister for Water and Power Raja Pervez Ashraf Friday said the government is taking practical steps to substantially enhance power generation and overcome the load-shedding.

Talking to newsmen here, he said power situation is improving with each passing day and five hundred Megawatt electricity has been added to the system which will help reduce the duration of load-shedding.

He said the top PPP leadership is alive to the problem of load-shedding and is striving to alleviate the sufferings of the people.

He said that all the new rental power plants will be functional by December which will help end the load-shedding.

Responding to a question, the Minister said that a new software has been developed to address complaints of masses regarding excessive billing.

Earlier the Minister chaired an inter ministerial meeting to review the overall power situation in the country. It expressed satisfaction that there was no unannounced load-shedding in eighty five percent areas of Karachi on Thursday.


----------



## Hyde

*Pakistan to welcome more Chinese investment: foreign minister​*
ISLAMABAD (July 24 2009): Foreign Minister Makhdoom Shah Mahmood Qureshi said Pakistan would welcome Chinese companies to invest in country's various sectors, particularly the energy sector. Talking to Chinese Foreign Minister Yang Jiechi in Phuket, Thailand the two sides expressed satisfaction over the strength of bilateral relations, which were underpinned by mutual interest and mutual trust.

The Foreign Minister who is in Thailand to attend the 16th ARF Ministerial meeting discussed bilateral and international issues of mutual interest. The Foreign Minister thanked the Chinese Foreign Minister for China's continued assistance in various fields and said Pakistan would welcome more Chinese companies to invest.

He also highlighted various areas for future Chinese investment, which included infrastructure, agriculture, health, construction of small and medium sized dams, and banking sector co-operation. The energy sector was particularly mentioned including power projects like Thar Coal and conducting hydrological and geological studies.

The Foreign Minister assured the Chinese Foreign Minister that Pakistan would welcome more Chinese participation in development projects and for this purpose would ensure security and protection of Chinese nationals in Pakistan. The two leaders noted with satisfaction that both sides were making efforts for the convening of the Joint Economic Group meeting to boost economic and commercial ties.

The Foreign Minister reiterated Pakistan's support for China's sovereignty, stability, and progress and felicitated him on the 60th anniversary of China's Independence. The Chinese Foreign Minister reaffirmed that Pakistan's security and development was indispensable for the peace and stability of the region and lauded Pakistan's current efforts in the struggle against terrorism and militancy.

Reactions: Like Like:
1


----------



## Hyde

*Failure to achieve export target: Gilani to quiz Commerce Ministry high-ups today ​*
ISLAMABAD (July 24 2009): Prime Minister Syed Yousuf Raza Gilani is to quiz the Commerce Ministry high-ups on Friday (today) for failure to achieve the export target although the officials spent most of their time on foreign tours pretending to be taking steps for export boost. Trade Policy 2009-12 will also be discussed at a special meeting at Prime Minister Secretariat convened for this purpose.

The government had fixed export target for 2008-09 at $22.1 billion but the Commerce Ministry could only achieve 80.5 percent of the target. The sources said Prime Minister Gilani during his visit to the Commerce Ministry a couple of days ago had directed that at least the revised target of $19.2 billion be achieved, but unfortunately the advice of the Prime Minister went unheeded.

The Commerce Ministry is proposing 25 percent growth in exports in three years ie 5 percent during 2009-10, 10 percent in 2010-11 and another 10 percent in 2011-12, which means export target for the current fiscal year will be around $19.5 billion. There are a few export sectors, which showed laudable growth in 2008-09.

In 2007-08, the Commerce Ministry had fixed export target of $19.2 billion and achieved 99.2 percent ($19.052 billion) but during 2008-09 its performance remained zero. "Setting up of a hedge against any revision in interest rate, insurance of foreign buyers, subsidy on inland freight charges and credit availability for the industrial sector are also under study," the sources added.

The government is also considering penalising power distribution companies for not supplying required power to the industry as per the agreement signed at the time of connection. The sources said the Commerce Ministry will also announce incentives for those sectors which showed growth in export during June-July 2008-09.

During 2008-09, export of raw cotton declined by 11.7 percent, cotton yarn by 10 percent, knitwear by 8.3 percent, bedwear 7 percent, towels 5.8 percent, tents, canvas and tarpaulin by 11.6 percent and readymade garments by 10.9 percent. Only cotton yarn showed growth of 3.7 percent and cotton carded or combed by 12.3 percent.

Food group has shown 6.7 percent growth in exports as export of rice increased by 18.7 percent, oil seeds, nuts and kernels by 667.4 percent, spices by 241 percent, tobacco 859 percent and leguminous vegetables by 111 percent. However, sugar export declined by 92.6 percent. Export of petroleum products and coal during the 2008-09 also declined by 35.5 percent.

IMPORTS: According to foreign trade figurers, there was negative growth of 10.5 percent in machinery import but power-generating machinery showed a growth of 48.5 percent to $1148.7 million from $1177.7 million in the same period last year.

Construction and mining machinery and electrical machinery also showed a growth of 6.3 and 1.4 percent, respectively. Telecom sector showed 57.2 percent negative growth, of which mobile phone import declined by 77 percent and other apparatus by 47.5 percent. Import of agriculture machinery also showed a negative growth of 24 percent.

The statistics further show that import of petroleum products declined by 17 percent from $11462.9 million in 2007-08 to $9509.7 million in 2008-09 for which the petroleum import bill has substantially decreased. One of the officials of the Commerce Ministry told this scribe that this time the Trade Policy may not have any special treatment for Indian products as has been the tradition in the past.


----------



## Hyde

*CAA inaugurates Fast Tract Facility Counter​*
KARACHI (July 24 2009): Air Vice Marshal, Riaz ul Haq, Deputy Director General, Civil Aviation Authority inaugurated the Fast Tract Facility Counter at Jinnah International Airport. Now the arriving business and first class international passengers can use this facility for speedy immigration. A Business Visa Counter has also been established where businessmen can avail visa facilities on arrival.

The service works round the clock, facilitating passengers for a smooth and hassle-free accessibility on the go. The senior CAA officials were also present on the occasion including Syed Hamid Abbas Gardezi, Principal Director Airport Services, M. Hanif Aurakzai Regional Director (South), Kashif Ali Hashmi, Chief Commercial and Marketing Officer and other CAA Directors.

Talking on the occasion Air Vice Marshal, Riaz ul Haq, Deputy Director General, Civil Aviation Authority, said that CAA priority is passenger convenience and this facility would surly add to an ever increasing range of services for the travelling public.

Giving details of the efforts CAA has put in during last two years for improvement of service standards for travelling passengers. M. Hanif Aurakzai said that CAA has launched special Airport Services Improvement Programme which include passenger feedback through comments cards, suggestion boxes, mystery passenger surveys, exchange of letter, e-mails and these feedbacks received are used for further improvement of facilities and services at airports.-PR


----------



## 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.

Reactions: Like Like:
1


----------



## Omar1984

*&#8216;Pakistan should be used as gateway for world market' ​*

ISLAMABAD: Ambassador of Tajikistan, Zubaydov Zubaydullo Najotovich, on Friday reiterated that Pakistan is a gateway to the world and Central Asian States, which are in a dire need of access to the world through the port of Pakistan. 

The ambassador expressed these views during a meeting with the Federal Minister for Industries and Production, Mian Manzoor Ahmad Wattoo, here today. During discussion he also pointed out that Pakistan was also looking to import Tajik power to its Northern Areas as Tajikistan has huge hydropower potentials and cheapest electricity in the world. 

Easy and smooth supply of energy has become the top-most concern of every government around the globe. The ministers of four countries, Pakistan, Tajikistan, Kyrgyzstan and Afghanistan signed a resolution to proceed further with the Central Asia/South Asia Regional Electricity Market (Casarem) project envisaging transmission of 1300MW from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan; but further commitment to the project would be linked to the availability of financing. A consortium of three financial institutions i.e. Islamic Development Bank, Asian Development Bank and World Bank has recently agreed to provide $1 billion to Pakistan to import electricity from Central Asian Republics (CARs). Together with the government of Tajikistan and Kyrgyzstan an inter-governmental council was established in 2007 and a secretariat in 2008 with the objective of developing the electricity market and the CASA 1000 project. staff report


----------



## Omar1984

*Pakistan, Denmark to explore trade prospects ​*
KARACHI: Ambassador of Denmark Anders Hougaard has expressed that presently Pakistan and Denmark were facing bilateral trade deficit. 

This he said during his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Friday. 

Acting President KCCI, Muhammad Ali welcomed him and expressed his gratitude towards better relationship among the governments and people of both Pakistan and Denmark.

Ambassador of Denmark informed that his visit to the KCCI was to invite the private sector of Karachi to initiate B2B (Business to Business) meeting with their Danish counterparts in order to explore new bilateral trade prospects. He stated that Danish Embassy in Islamabad would be pleased to facilitate for arranging the B2B meetings of Pakistani and Danish businessmen. He said that great potential of bilateral trade does exist, which was not properly utilised in the past. He asked the acting president KCCI to encourage the interested KCCI member companies for bilateral trade.

Ali was of the view that the private sector of both countries must come forward and identify the potential items for bilateral trade to enjoy friendly economic relationship. He drew the attention of the Danish ambassador towards exports potential in textile products, leather goods, agro-based products, handicrafts, surgical and sports items. 

He also asked the Danish ambassador for deliberation on the prospects of joint ventures in dairy farming, agriculture machinery, light engineering and alternate energy solutions. staff report


----------



## SinoIndusFriendship

Omar1984 said:


> *Pakistan, Denmark to explore trade prospects ​*
> KARACHI: Ambassador of Denmark Anders Hougaard has expressed that presently Pakistan and Denmark were facing bilateral trade deficit.
> 
> This he said during his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Friday.
> 
> Acting President KCCI, Muhammad Ali welcomed him and expressed his gratitude towards better relationship among the governments and people of both Pakistan and Denmark.
> 
> Ambassador of Denmark informed that his visit to the KCCI was to invite the private sector of Karachi to initiate B2B (Business to Business) meeting with their Danish counterparts in order to explore new bilateral trade prospects. He stated that Danish Embassy in Islamabad would be pleased to facilitate for arranging the B2B meetings of Pakistani and Danish businessmen. He said that great potential of bilateral trade does exist, which was not properly utilised in the past. He asked the acting president KCCI to encourage the interested KCCI member companies for bilateral trade.
> 
> Ali was of the view that the private sector of both countries must come forward and identify the potential items for bilateral trade to enjoy friendly economic relationship. He drew the attention of the Danish ambassador towards exports potential in textile products, leather goods, agro-based products, handicrafts, surgical and sports items.
> 
> He also asked the Danish ambassador for deliberation on the prospects of joint ventures in dairy farming, agriculture machinery, light engineering and alternate energy solutions. staff report



Denmark has serious problems against Muslims and non-whites. Mmmmm????


----------



## Omar1984

*Investment Promotion and Protection Act: MoI formulating law for investors&#8217; protection ​*
By Sajid Chaudhry 

ISLAMABAD: Ministry of Investment is planning to give the country a unique legislation-Investment Promotion and Protection Act-to protect local as well as international investors against political victimisation and ensuring continuity of economic policies in the country, Waqar Ahmed Khan told Daily Times during an exclusive interview here on Friday 

The act of parliament would require the future government to honor in letter and spirit the investment agreements as well as Memorandum of Understandings signed by the government of Pakistan. 

Legislation, first of its kind in the world, aims at protecting the investors from adverse changes in economic policy in subsequent governments as well as protection against political victimisation, Federal Minister for Investment, Waqar Ahmed Khan said. He said that draft of this unique legislation would be ready by next four months and after having consultation with federal ministries and provincial governments as well as after seeking advice from Supreme Court of Pakistan it would be presented before the Federal Cabinet for initial approval. 

Although the constitution of the country provides protection to the investors under investment agreements signed with the present day government against unfavorable treatment in the future governments. However, this kind of protection is mainly available to the foreign investors only and local investors don't have any such protection. Some time, change in the government, put the investors in to difficulties in new set up and they face undesired situation resulting in outflow of investment from the country, he added. The investors have no choice to create political linkages in present political set up as well as future set to protect their investment as well as their rights. 

He was of the view that for finalisation of draft of the Investment Promotion and Protection Act, changes or amendments in many existing laws would need to be made. While citing example of Investment Act 1976, he said that this law is totally outdated and doesn't meet the present day needs. Similarly, Economic Reforms Act, Land Laws, Securities and Exchange Commission of Pakistan's law, Tax Laws and other number of laws would be required to be amended so that aim of protection and promotion of investment in Pakistan is achieved. 

He said that after enactment of new law by the Parliament, the investors would be protected in a way that they would not need to create political linkages in future political set for protection of their investment in Pakistan. 

The new law would provide appeals in higher courts instead of lower courts for the speedy settlement of investment disputes between the parties in this regard, first stage of appeal is proposed to be high courts against the existing practices, he added. In this regard, The Ministry would also approach Supreme Court of Pakistan for seeking proper advice and guidance. 

He said that to make this legislation more competitive to meet the international requirements, a legal experts group is to be formed including experts of international repute in the areas of investment, taxation, dispute settlement, international law as well as other domains. This expert group would be asked to recommend measures for making the proposed legislation according to the best international practices for promotion and protection of investment in the country. 

He informed that new legislation aims at minimising chances of disputes with international investors by clearly defining the rights and obligations of the local as well as international investors. 

He said that Pakistan is pursuing the most liberal investment policy in the South Asian region, new incentives and further liberalization measures including reduction in foreign equity from $0.5 million to $0.3 million, technology and special incentives including tax relaxation is being given on the projects of social, service, infrastructure, agriculture and international chain of food franchises. We are also offering zero import duties on capital goods, plant, machinery and equipment (not manufactured locally) without discrimination to both local and foreign investors. 

The Federal Minister also said that investors who invest in the newly opened sectors can import plant, machinery & equipment on concessional rates and they can also avail first year allowance of 50 percent of the cost of plant, machinery & equipment. Zero import duties on raw materials used in the production of exports is also being offered. 

Waqar Ahmed Khan further said that a large number of tariff and non-tariff barriers are being removed, and the negative and prohibited list of imports has also been reduced, export incentives are being broadened and Ministry of Investment is putting its best efforts to modify the visa policy of Pakistan to make it more attractive to the foreign investors. Besides, Special Industrial Zones (SIZs) are being established with hefty fiscal incentives to attract foreign investment in export-oriented industries. An important achievement of Ministry of Investment in this period is that the various foreign potential companies are showing their keen interest to explore the untapped resources especially in power generation, oil and gas, agri-farming, affordable housing, infrastructure and engineering sectors, he added. 

The Minister said that investment, particularly foreign direct investment (FDI), is now perceived in many developing countries as a key source of much-needed capital, advanced technology, and managerial skills. Realising its central importance to economic development, the present government has taken wide-ranging steps to liberalise its inward investment regime and have succeeded in attracting substantial amount of foreign investment. Moreover, the present government is taking dynamic steps to further strengthen the fiscal graph of Pakistan 's economy. &#8220;We believe in open door policy and Government of Pakistan is earnestly trying to restore the confidence of foreign investors,&#8221; he said.


----------



## Omar1984

*French companies seek investment opportunities ​*
Staff Report

LAHORE: Reiterating her country's continued support for Pakistan in its efforts to overcome economic difficulties, French Minister for Foreign Trade Anne Marie Idrac said that French companies were looking at projects in the transport, energy, water treatment and food sectors. 

The French foreign trade minister, who was heading a 21-member strong delegation comprising parliamentarians, executives of multi-national companies and government officials, was speaking at the Lahore Chamber of Commerce and Industry on Friday. 

President LCCI Mian Muzaffar Ali, Senior Vice President Tahir Javaid Malik, Vice President Irfan Iqbal Sheikh, French Ambassador Daniel Jouanneau, Consul General in Karachi Pierre Seillen, Head of French Economic Services in Pakistan Dominique Simon and LCCI former president Mian Misbahur Rehman also spoke on the occasion. 

The French minister said the private sector delegation accompanying her was a manifestation of her country's keenness to assist Pakistan officially and the President Nicholas Sarkozy would sign agreements with Pakistan government during his visit to Pakistan by the end of this year. 

She said France wanted to open a new chapter of partnership with Pakistan because of the return of democracy and its resolve to fight out terrorism. She said that the President Sarkozy would sign agreements on defence, security, economy and energy. 

She said the French companies would develop better partnership in the fields of energy efficiency in renewable and hydro energy projects. Several companies are already operating in Pakistan, she added. 

The French minister also promised to extend cooperation in the field of agro-processing industry. By the end of this year, French agro-based industry would hold single country exhibition in Lahore, she added. Ms Idrac said a proposed partnership between Pakistan and France on civilian nuclear energy would be limited to nuclear safety and security. 

"What we propose is something very important, which is the possibility for technical people to discuss very precisely what can be done in terms of safety and security for the existing civil nuclear plants," she said. 

This question is to be settled within the framework of the international commitments to which France is a party, and any cooperation is subject to international agreements. 

French Ambassador Daniel Jouanneau, while addressing the meeting said that all genuine businessmen would be accorded red-carpet treatment at the embassy but they had to wait for minimum three weeks to complete the visa process. 

Speaking on the occasion, the LCCI president sought the help of French government in four fields including energy, environment, agriculture and transport. He said Pakistan's number one problem is energy and the country needs efficient, stable and cost-effective energy. 

He said that Pakistanis are very grateful to the French government that they are once again considering providing us with the means to set up nuclear energy facilities. "No doubt this will contribute immensely to achieving an early equilibrium in our industrial and economic growth by alleviating our acute power shortages." 

He said that Pakistan was deeply impressed by the advancements made by France in the field of alternative energy solutions and wants to get benefit from French expertise in this field. He said that the provision of nuclear energy and cooperation in the field of alternative energy will be a giant leap in fulfilment of the goal of progress and prosperity. 

LCCI president urged the French minister to help Pakistan in producing fruits and vegetables in temperature-controlled enclaves and greenhouses etc. 

"Despite the fact, that Pakistan has abundant fruit production, it lacks the facilities and the techniques for processing and preserving these fruits, which can easily be transferred to Pakistan by means of joint ventures. 

He said that France has most efficient, highly developed and technically advanced transportation system in Europe and in order to develop an efficient transport system linking our cities and regions we need French support and cooperation. He also invited French hospitality and tourism industry to make investment in the north of Pakistan that has very scenic and breathtaking mountainous regions. In his concluding remarks, the LCCI president said he wants to convey to the world at large that Pakistan is a peace-loving nation and all apprehensions about the stability and safety of its nuclear assets are totally misplaced. "We assure you that the control and command structure of these assets is very secure and fully justifies our need of a nuclear deterrent to maintain the geo-political balance in our region."


----------



## Omar1984

Omar1984 said:


> *Emaar Pakistan to launch sale of Mirador Villas ​*
> ISLAMABAD: Emaar Pakistan, the country subsidiary of global property developer Emaar Properties PJSC, will be offering sale of a limited number of fully-constructed Mirador Villas at the Canyon Views development in Islamabad on July 25, 2009. Sales of villas will be held at the Islamabad and Karachi Sales Center on a first come, first served basis. Emaar Pakistan is offering ready to move in villas at Canyon Views for those who missed booking in 2006. The launch of the limited selection of Mirador Villas will give prospective customers a golden opportunity to be part of a world-class community. staff report


----------



## Omar1984

*Govt offers 53 blocks to exploration companies ​*
LONDON: Pakistan has offered 53 blocks to exploration companies for competitive bidding on the occasion of the two-day Pakistan oil and gas exploration promotion conference which began here on Thursday.

In his keynote speech Prime Minister&#8217;s Adviser on Petroleum and Natural Resources Dr Asim Hussain highlighted the huge untapped exploration potential in Pakistan and said that total endowment of hydrocarbons in the country was estimated at 27 billion barrels of oil and 280 trillion cubic feet of gas of which only 3.4 per cent of oil and 19 per cent of gas had been explored so far.

Dr Hussain said that with a success ratio of 1:3 and highly attractive terms of engagement under the Petroleum Policy 2009 and availability of large number of acreages made Pakistan a land of opportunities for any hydrocarbon explorer.

Pakistan&#8217;s High Commissioner to the UK Wajid Shamsul Hasan highlighted the significance of strategic location of Pakistan and said that the country being a gateway to the energy-rich Central Asia, the financially liquid Gulf states and the East Asian tiger economies remained an ideal destination for investment. He said the oil and gas sector in Pakistan had seen phenomenal growth. Over the past half century the petroleum industry has played a significant role in economic development, by making large indigenous gas discoveries. 

He further informed that Pakistan met about 15 per cent of its oil needs from local sources. Oil and gas are major components of Pakistan&#8217;s energy mix.

He said that the government sought to promote foreign investment in upstream petroleum sector with a view to exploiting indigenous hydrocarbon resources in an optimum manner for the benefit of the nation.

Special Secretary Petroleum and Natural Resources G.A. Sabir made a presentation on salient features of Petroleum Policy 2009 and briefed on lucrative fiscal terms for onshore and offshore exploration.

Mr Zahid Hussain, Chairman of the Oil and Gas Development Corporation, briefed on the geological aspects of oil- and gas-rich areas of Pakistan.

A large member of investors from the UK and multinationals already working successfully in Pakistan are participating in the conference.


----------



## Omar1984

*Pak-Italy sign $100 million agreement ​*
ISLAMABAD: Pakistan and Italy signed a $100 million agreement of financing ten projects within the framework of the Pakistan Italian Debt for Development Swap Agreement following the approval of the Management Committee, APP reported.

Under the debt swap, US$ 100 million would be utilized to finance development projects in Pakistan, mainly for social sectors like health, education and sanitation.

The agreement was signed by Secretary of Economic Affairs Division, Farrakh Qayyum and Italian Ambassador in Pakistan, Vincenzo Prati.

'The Italian government has offered to convert part of their loans into debt swap which could be converted into rupees and utilized in various social sector development projects,' Farrakh Qayyum remarked, APP reported.

He said that Italy has been proactive in assisting Pakistan in social sector developments, adding that it was already executing such projects in the country.

'In this extremely crucial moment for Pakistan, the Development Swap Agreement is an essential initiative undertaken by the Italian Government, which erases debt through the execution of development projects,' he added.

He said that a committee co-chaired by Secretary EAD and the Italian Ambassador was evaluating about 62 projects which he said would be allocated throughout Pakistan.

Speaking on the occasion, Italian Ambassador said that Italy would provide all possible support for the development of social sector projects in the country, adding that its projects were already under progress in northern areas.

He said that Italy would also launch a project of preserving the archaeological heritage in Swat valley on a sustainable basis, adding that the institute would also be made to serve this purpose, APP reported.

It may be recalled that the financial envelope of the approved projects, which is worth Rs.3.6 Billion and ready for implementation, represents almost half of the agreement.

The plan covers varied and essential fields of the social sector like health, education and sanitation, sustainable economy through micro-credit, community development, sustainable agriculture and environmental protection.

The parties have agreed upon an allocation of US$ 10 million for the internally displaced persons, which is to be negotiated with the concerned authorities of NWFP, with an aim to establish appropriate activities for a prompt rehabilitation of the areas affected by the war against extremism.

The projects, that are promoted and executed by NGOs, Italian NGOs and the public sector in accordance with agreed shares, will be allocated throughout Pakistan.

These include two mega integrated projects, one for the Northern Area that focuses on Central Karakorum National Park and its surrounding villages, and the other on the Frontier Regions of FATA.

Other projects focus on the commercialization and promotion of olive and olive products in Balochistan, NWFP and Punjab; construction of an International Center for Reconstructive Surgery; vocational training and shelter homes in order to assist the women victims of acid attacks in Punjab in their physical and social struggles; initiatives in Balochistan, Punjab and Sindh addressing kidney, eye-care services and micro-credit schemes.

The General Strategic Plan provides the basis to complete the commitment before the end of 2009 for the entire amount of the Agreement.

By launching Calls for Proposals, a balanced implementation share in geographic, thematic and organizational terms can be ensured.

The Italian Government is thoroughly engaged in finalizing two significant contributions to the regions bordering Afghanistan by offering micro-finance facilities of 40 million Euros and vocational training worth 20 million Euros.


----------



## Omar1984

*Gilani proposes changes in draft trade policy ​*
ISLAMABAD: Prime Minister Yousuf Raza Gilani said on Friday that export target has been missed owing to global recession and inability of his government to implement the measures envisaged in the trade policy for promotion of exports.

&#8216;The export target of 2008-09 has not been achieved and there is a shortfall of $5 billion due to global recession as well as our inability to implement the measures that were envisaged under trade policy last year,&#8217; the prime minister said while chairing a high-level meeting to discuss next year&#8217;s trade policy.

He underscored the need for implementing policies in letter and in spirit so that the desired results could be achieved.

The premier suggested a few changes in the draft policy which would be presented before the special cabinet meeting for approval on Monday before its announcement on the same day by the commerce minister. 

A detailed presentation was given to the premier on salient features of the Trade Policy Framework 2009-12 and Trade Policy for 2009-10 by the Commerce Minister, Amin Fahim. It was attended by senior officers of the ministry.

An official statement said that the premier said that problems, like lack of competitiveness and market innovation, high cost of finance; unreliable power supply, tariff and non-tariff barriers and the law and order situation have severely impeded government efforts to achieve a meaningful breakthrough on the export front.

A source privy to the meeting told this scribe that the commerce ministry proposed an export target of $18.67 billion for the year 2009-10, a five per cent growth over this year export proceeds of $17.781 billion for the year 2008-09. Pakistan&#8217;s export proceeds were $19.1 billion in 2007-08.

With a 10 per cent growth, the ministry proposed an export target of $19.559 billion for 2010-11. 

According to the source, the focus of the policy is on four areas: the government will announce a hedge fund to give loans to sick or slowing industries on low mark-up rates. 

A proposal has been floated to give insurance cover to foreign importers, who did not feel comfortable to visit Pakistan for placing orders owing to prevailing law and order situation.

The commerce ministry has also proposed Inland Freight subsidy to reduce the cost of transportation of goods meant for export from upfront country. A special focus will be for promotion of engineering goods from the country under the proposed policy, the source added.

According to the statement, trade is the primary vehicle to achieve the vision of socio-economic uplift of the masses; therefore, expansion in trade not only serves as a vital factor in balance of payments but also helps generate jobs, increases productivity and brings wealth to the nation.


----------



## Omar1984

*Pak-China Joint Economic Group to boost economic and commercial ties: Senator Waqar Ahmed Khan ​*
ISLAMABAD, Jul 24 (APP): Federal minister for Investment, Senator Waqar Ahmed Khan said that Pakistan was encouraging potential Chinese companies for investment in country&#8217;s various areas, particularly in the direly needed energy sector. He was discussing investment scenario with a Chinese delegation led by the ,Chinese Ambassador to Pakistan Lue Zhaohui who called on the minister in his chamber, at Cabinet Division, today. 

Federal minister said that China is our strategic partner and time tested friend and Pakistan attached the highest importance to China&#8217;s progress and prosperity. 

He expressed satisfaction over the strength of bilateral relations which were underpinned by mutual interest and mutual trust. 

The federal minister hailed China&#8217;s continued assistance in various fields and said that Pakistan would welcome more chinese companies to invest. 

He also highlighted various areas for future Chinese investment which included; infrastructure, agriculture, health, construction of small and medium size dams and banking sectors. 

&#8220;We have a special focus on the development of energy sectors, and offering chinese potential companies to invest, particularly in power projects like thar coal and conducting hydrological and geological studies&#8221;, he remarked. 

Senator Waqar said that &#8220;we have technology in our neighborhood and Pakistan would welcome more Chinese participation in development projects and for this purpose we will ensure security and protection of Chinese investors in Pakistan&#8221;. 

Federal minister for Investment apprised the Ambassador regarding high&#8209;level task force meeting which was held to review the follow&#8209;up actions taken on the President&#8217;s directives to expedite various cooperative agreements ,in areas including building of dams , thar coal project, transfer of hybrid technology cooperation between PARC and Chinese Academy of Agricultural Sciences (CAAS), export of northern areas fruits to china, MOUs on development of fisheries and sugarcane and the joint Pak&#8209;China economic commission. 

He also discussed other projects being executed by Chinese companies in rest of the country and Balochistan. 

Senator Waqar Ahmed Khan said that both sides are making efforts for the convening of the joint economic group meeting to boost economic and commercial ties. 

The federal minister reiterated Pakistan&#8217;s support for China&#8217;s sovereignty, stability, and progress and expressed his hearties felicitation to the Chinese&#8217;s government and its people on the eve of 60th anniversary of China&#8217;s independence. 

The Ambassador of China hailed the government&#8217;s new liberal investment policies and strenuous efforts to resolve the issues of the investors. 

He informed the minister regarding Chinese companies desire to invest in different areas of energy sector; including hydropower. 

Ambassador assured the minister that China will take part in all the major projects to share their expertise with Pakistan.


----------



## Hyde

*NADRA gets Nigerian contract for national identity system​*
Updated at: 1220 PST, Saturday, July 25, 2009
NADRA gets Nigerian contract for national identity system KARACHI: National Database and Registration Authority (NADRA) has won a $1 million contract to develop National Identity Management System for Nigerian government. The project for National Identity Management Commission, Office of the President Government of Nigeria was competed by renowned foreign IT firms, which was won by NADRA.

A contract in this regard was signed in a prestigious ceremony held in Abuja, Nigeria between Deputy Chairman NADRA Tariq Malik and Director General and CEO of National Identity Management Commission, Office of the President of Nigeria Chris E Onyemenam.


----------



## Omar1984

*Trade Policy targets $25bn textile exports by 2011-12 ​*
Staff Report

KARACHI: The textile policy, formulated for three years envisions the export of the textile products to reach $25 billion in next three years, Rana Farooq Saeed Khan, Minister for Textile Industry has said. 

Speaking at dinner meeting hosted in his honour by Tariq Saud Vice Chairman All Pakistan Textile Mills Association (APTMA) on Friday night he said that the government is determined to address the problems of textile industry. 

Minister said that the Textile Policy has been finalised and would be issued soon. He further informed that the policy has been formulated for next three years in such a manner so that the export of textile sector may achieve a target of $25 billion in next three years. 

The policy will address the issues of up-gradation of machinery, provide infrastructure facilities and skill development of human resource of this industry so that they can compete in international market with their competitors. 

Minister for Textile Industry further informed the meeting that the Spinning and Weaving Sector would get its due share from the Export Investment Support Fund, worth Rs 40 billion allocated in the Federal Budget 2009-10. 

Minister advocated immediate support to textile industry in the Parliament and also in the Cabinet Meetings because he is confident that only textile industry is capable enough to bail out Pakistan from the current economic crisis so that the government should help this industry. 

Tariq Saud, Vice Chairman APTMA highlighted problems and issues being faced by the textile industry. He stressed that government should take immediate measures to tame the slowdown in the textile sector. He said that high cost of doing business is because of highest ever increase in the rate of interest, which has multiplied the problems of the industry. 

He said that power shut downs may result in massive unemployment resulting in law and order situation. Negative growth of about 9 percent in largescale manufacturing is mainly due to high cost of doing business. Slump in the industrial growth has greatly affected export of textile items, he added. 

He said that unprecedented increase in markup rates is one of the major cause of defaults in servicing the loans availed by the industry, hence, the volume of non-performing loans has reached to an alarming situation. 

He urged the government to provide relief to the industry without any further delay and regain confidence of businessmen and industrialists otherwise the outcome of the current situation will result in high rate of loan default and closure of industry. 

Dr. Waqar Masood Khan, Secretary, Ministry of Textile Industry while addressing the meeting said that preparation of Textile Policy was the main objective of this ministry. 

He said that although we are 4th largest producer and 3rd largest consumer of Cotton but unfortunately now we are at number 12 in the international trade of textile products.

He assured that government will address the problems of Textile Industry without any further delay and he is confident that the first ever textile policy of Pakistan will address the problems and provide immediate relief to industry and make it competitive in international arena.

Reactions: Like Like:
1


----------



## Omar1984

*WLL users&#8217; base widens by over 15 percent in 2008-09 ​*

By Muhammad Yasir

KARACHI: The number of Wireless Local Loop (WLL) users' is on the rise, increasing by 15.69 percent in 2008-09 with the growing usage in various commercial sectors and small business across the country.

As per Pakistan Telecommunication Authority (PTA) latest statistics, the base of WLL have witnessed an addition of 0.410 million subscribers in the closing fiscal year amid the healthy competition on rates and services among operators. The WLL teledensity has reached to 1.6 units in 2009 from 1.4 in 2008. The outgoing fiscal year also witnessed contraction of wireless subscribers in November and December whereas it recorded robust growth users in April 2009 with 4.2 percent on year-o-year basis. 

Telecom analysts said the WLL sector has added commercial sectors and small business like Public Call Office (PCO). The free on-net calls are benefited to the sales and services sector making their communication easier at cheaper daily line rent policy, they added.

The addition of connections has been posted through the multipe service packages of Wimax operators offering with wireless telephony services along with connection. Besides, some of the operators have also attracted good number of users by introducing mobile handsets on their connections of wireless technology. They added the WLL sector is also witnessed immense competition not only among the WLL players but also with cellular phone sector particularly in the rural cites of the country. 

Pakistan Telecommunication Company Limited (PTCL) has added the highest number of users in its wireless users' base by 0.117 million, followed by Telecard and WorldCall who enhanced their subscribers by 0.108 million and 0.061 million in the closing fiscal year 2008-09, PTA data said. Their overall bases have reached 1.305 million, 0.620 million and 0.549 million, respectively.

Wateen, Burraq and Mytel-also served connections to 72,176, 45,224 and 19,349 customers with the healthy growth in recent fiscal year 2008-09. Wibe-tribe, the other player of the market also added 2,712 users on its network.

Analysts further said the WLL also started offering free calling minutes and text services along with value added services that also caused popularity of the services.

The services are frequently used for international call on its affordable call packages. The traffic of international calls has been increasing continuously in the current fiscal year. 

PTA claims that WLL services are available across Pakistan in 14 telecom regions. It reported 100 percent coverage enhancement of WLL in various cities, towns and villages of the country. By the end of 2008, there are more than 12,000 cities, towns and village have been covered with network by operators which were only 11,000 by the start of 2008. Currently, there are more than 3,262 cell sites installed by WLL services in the country, PTA reported.


----------



## Omar1984

*Federal govt to approve comprehensive law for SEZs soon ​*
By Sajid Chaudhry

ISLAMABAD: Federal cabinet is expected to approve Special Economic Zones (SEZs) law and policy soon to provide the economy a sound industrial base through establishment of Special Economic Zones in all parts of the country including Federally Administered Tribal Areas. 

Federal Minister for Investment, Waqar Ahmed Khan, confirmed Daily Times on Saturday that SEZ Act also containing SEZ Policy would be implemented in coordination with all four provincial governments, Azad Jammu and Kashmir government and FATA Secretariat. 

Those making investment in SEZs would be given income tax exemption for 10 years and zone developers would also enjoy the same facility. There would be no restriction on industrial units setup in SEZs to sell their production within the country or export it. 

Industrial units located in SEZs would be enjoying true zero rating for their imports and the imports of raw materials and all capital goods would be exempted from general sales tax, federal excise duty, withholding tax and customs duty. 

A high-powered SEZ Board would be constituted with, Prime Minister as its chairman and all four chief ministers and Prime Minister AJ&K, federal ministers from all economic ministries, and all important national and international chambers would also be given representation in the said board. 

Provinces and other federating units would approach the federal government for declaration of any area as Special Economic Zone, the minimum size of which is being fixed at 50 acres. Upon approval from the board, the area would be formally declared as SEZ and zone developers of international repute would be invited to develop their own investment these SEZs with all facilities at international standards for investors. Private sector would develop these SEZs and would also manage such so that interference of governmental organisations is totally eliminated within the zones. 

SEZs Development Committees would be formed in each province headed by Chief Ministers with members from public and private sector so that SEZ concept is implemented in letter and spirit. 

Under the SEZ policy federal government and provincial governments would provide all infrastructure and services including utilities like water, gas, electricity, telephone, internet and approach roads at gates of the proposed SEZs. 

Federal government would also allow the investors to set up their own power generation units and in case excess power is available it could be sold to the distribution companies of WAPDA. To provide the investors ease of doing business in the premises of SEZs no official from provincial or federal department to be allowed to visit industrial units, accept prior approval from the competent authority in each province. 

Developers and managers of the SEZs would be responsible for provision of all civic facilities to the investors. However, for facilitating them, Special Police Stations for each SEZ would be set up with educated police staff so that they could help the management of SEZ in case any need arises. Normal police and other law enforcement agencies would have no business inside the proposed SEZs. 

Re-construction Opportunity Zones would also be covered under this important legislation for ensuring early achievement of duty free market access benefits from US markets. Introduction of SEZ concept in FATA would help early development of ROZs with the help of private sector and early development of SEZs in this part of the country would help generate much-needed employment opportunities for local youth who have no economic opportunity in their area and are falling victim of indulgence in terrorist activities. 

To save the SEZs from land mafia's activities, the new law and policy on SEZs would determine 10 percent area of SEZ for housing and other civic facilities and 90 percent area of SEZ would exclusively be available for setting up of industrial units. Besides, SEZs are being established with hefty fiscal incentives to attract foreign investment in export-oriented industries.


----------



## Omar1984

*&#8216;Sindh taxation dept to modernise tax collection procedure&#8217; ​*
KARACHI: Provincial minister for Excise and Taxation, Mukesh Kumar Chawla said that KCCI must forward productive suggestions and proposals for the improvement of provincial taxation system. 

While talking to KCCI members Saturday, he said that government of Sindh, in order to facilitate tax payers and enhance tax collection, has modernised its tax collection procedure by introducing computerised collection. 

In this regard excise & taxation department has modified procedure for the collection of Infrastructure Cess through computer-generated challans issued by Pakistan Revenue Automation (Pvt.) Ltd. with cooperation of Customs Department, the minister said. 

He said that following the better policy of the ministry, the department during the last fiscal year achieved revenue of Rs 14.7 billion. 

He said that department was going through the process of computerisation and a comprehensive provincial taxation portal will be established within next two years, which would completely replace the manual system.

Approval for computerisation of the department was granted after deliberation of 8 years, however, at present the process is rapidly progressing and it would be linked with the customs and other relevant systems, he added. 

He said that the computerisation of the department was designed in a smart way and tax payers could access their accounts online to assess their tax liabilities. He said that a plan is also underway to broaden the collection of tax through banks under which more banks would be authorised for the collection of provincial and local taxes. 

He urged the registered taxpayers to pay their taxes promptly without any delay to reduce the chances of penalties. He asked the business community to strongly discourage illegal gratification demanded by any tax official. 

Answering to a suggestion regarding dissemination of funds collected through motor vehicle taxes be given to the City Government to construct new roads and repair the existing, he informed that the same was already in practice and its proper utilisation accordingly depends on the City District Government.

Replying a query, he said that the ministry is trying to minimise the tax on Stage Dramas and cinemas industry so that the industry could be saved from a complete collapse.

Acting President KCCI, Muhammad Ali, urged for the simplification of provincial and local taxes system. In the present scenario there were multiplicity of taxes and levies imposed on trade and industry, therefore, a large number of businessmen were unable to pay their tax-liability on time and consequently they should be granted a leverage period of one year to pay their provincial and local taxes liabilities.

Moreover, he also demanded for the waiver of 100 percent penalties imposed in many cases of property taxes. He was of the view that property tax imposed on KCCI building should be exempted, as it was protected under the National Heritage. He proposed that taxes like vehicle tax, driving licence etc. should be taken as lifetime tax for the ease of tax payers. 

Rasheeduddin Rashid, Chairman, Provincial, Local Taxes & Allied Matters requested the Minister to waive off the 100 percent penalties imposed alongside the property taxes which was delayed for payments due to uncertainty in the business activities. staff report


----------



## Omar1984

*WEEKLY REVIEW: Re-launching of 18 scrips takes KSE 19.39 pts up ​*
KARACHI: Bull reigned the Karachi stock market during the week on support from buying activities as Securities and Exchange Commission of Pakistan (SECP) approved the re-launching of deliverable futures contract in 18 scrips.

The Karachi Stock Exchange (KSE) 100-share index gained 19.39 points or 0.2 percent to close at 7,783.40 points as compared to 7,764.01 points of the previous week. 

Other major factors that supported the market included approval of dividends for Letter of Comfort (LoC) unit holders of National Investment Trust (NIT), rise in international oil prices and renewed interest of foreign investors. The turnover was recorded at 193.04 million shares as compared with 183.81 million shares of the previous week, reflecting an increase of 5.02 percent. 

&#8220;The SECP&#8217;s approval of 18 future securities and monetary policy statement prospects elated investors&#8217; mood at the start of the week,&#8221; said analyst at JS Research Mustafa Bilwani. &#8220;SBP&#8217;s announcement of a delay in the monetary policy till August 15 dragged the market into the red on the last trading session of the week. 

Foreigners continued to be the net buyers for the sixth week in a row. They bought shares worth $19.6 million and sold shares worth $14.7 million, resulting in net buying of $4.9 million. Hence, during the last 6-weeks, foreigners were net buyers of $36.9 million worth of shares.

Regional markets were in the positive zone on account of better than expected US economic data, where Dow Jones crossed the 9,000 points barrier for the first time since the start of the year. SSEA, PSI, Sensex, KOSPI and JKSE were up by 5.7 percent, 4.8 percent, 4.3 percent, 4.3 percent and 3.8 percent respectively. Currently, the local market is trading at 48 percent discount to region on one-year forward earnings multiple. Interestingly, with 4.3 percent rise in Indian market this week, the KSE 100-share index is now trading at 54 percent discount to Bombay Stock Exchange on earnings multiple. 

FFBL and EPCL were among the major companies who announced their results this week. FFBL posted an earning per share of 53 paisas down 31 percent on yearly basis. UBL, Engro and FFC are the major companies, which will be announcing their financials in the coming week. Any positive earning surprises can be expected to lead to short-term rallies in these scrips. 

&#8220;Investors remained optimistic for significant rate cut in the monetary policy,&#8221; said analyst at Shahzad Chamdia Sec Ahsan Mehanti. &#8220;Positions were taken in blue chips in oil, fertilizer and cement scrips on expectations of record payouts in the result announcement session, which also helped the market to stabilise.&#8221; staff report


----------



## Omar1984

*Pakistani companies providing cheapest call rates world-over: Dr Yaseen ​*
By Mian Abrar 

ISLAMABAD, Jul 26 (APP): Chairman Pakistan Telecommunication Authority (PTA) Dr. Mohammed Yaseen Sunday claimed that Pakistani cellular phone companies were providing cheapest call rates across the globe.In a recent conference in India, the Indians claimed that they were providing cheapest calls world over. However, I confronted and made calculations to prove that Pakistan was the country providing the most inexpensive phone facility to its consumers, said Chairman PTA Dr. Mohammed Yaseen in an exclusive interview with APP. 

When his comments were sought over the spill over of Pakistani cellular phone signals to the neighbouring countries, Chairman said PTA had conducted comprehensive surveys to ensure that there were no spillovers from either side. 

The cell phone towers are installed in the bordering areas under a prescribes Standard Operating Procedures (SOP). We are ensuring that the SOP is strictly followed. Moreover, we have held negotiations with the neighbouring countries including Afghanistan and India to address the issue, he added. 

Answering a question about the governments ordinance on objectionable SMS, the chairman PTA said the government had issued the ordinance to establish a mechanism to check on those elements involved in the obnoxious SMS. 

When asked about those involved in fraudulent activities and fleecing the poor consumers through SMS for cash draws, the PTA chairman said the Federal Investigation Authority (FIA) would move against such elements under Spam Regulations. 

He said the PTA had installed a Redressal of Consumer Grievances Mechanism which would ensure proper resolution to the problems being faced by the telecom sector consumers. 

Dr. Yaseen informed that the consumers would have a complaint with the respective telecom operator and if the issue is not resolved, the consumer should file the complaint with the PTA Consumer Protection Directorate (CPD). 

The consumers can make a free-of-cost call to PTA at 080055055 if their complaint is not resolved within given timeframe by the concerned telecom operator, he said and added the PTA would take up the matter with the concerned authorities and would get it resolved amicably. 

We are providing level-playing field to all the operators and if any operator violates the laws, we would move for an action, he assured. 

He claimed that PTA was efficiently redressing the complaints of the consumers and the redressal rate stood at 96 per cent during the month of April. 

When asked about the PTA-FBR row over the dues reportedly liable to the PTA, Dr. Yaseen said there was no controversy and PTA was paying its installments on a regular basis. 

We have paid Rs 4 billion to the Federal Bureau of Revenue (FBR), he added. 

Asked about the poor performance of the Pakistan Telecommunication Company Limited (PTCL), Dr. Yaseen said he had held a meeting with the PTCL management and they had assured of resolving all issues of the consumers by July-end. 

He said the PTA would launch a survey to check the quality of services being offered by PTCL in the first or second week of August. 

Yes, a quality survey would be conducted in the first or second week of August, and if PTCL is found to be violating the laws inscribed in License, an action would be taken, he remarked. 

He said the PTA was also urging PTCL to allow other connections on PTCLs Fiber to Home service. 

When his comments were sought about the claims made by Telecom companies advertisements, Yaseen said the commercial practices and advertisements by the telecom operators should not be misleading, inadequate or unclear in terms and tariffs and there was clear and complete specification of tariff information, detailed billing information as per license conditions and publication of Code of Commercial Practice and Service Contract for the awareness of consumers.


----------



## Omar1984

*1990-policy on tourism to be replaced soon ​*
ISLAMABAD, Jul 26 (APP): The current tourism policy though framed back in 1990, but still guiding the business of country&#8217;s tourism sector inspite of falling miserably short to meet modern-days&#8217; needs of this growing field, would soon be replaced with new one, which the officials believe would boost tourism industry.A committee headed by Federal Secretary Tourism comprising provincial tourism secretaries as well as tourism officials from AJK and Northern Areas has been formed to work out new tourism policy. 

This committee was formed by Minister for Tourism Maulana Atta ur Rahman at the Inter-ministerial Meeting on Promotion of Tourism recently held. 
Maulana Atta ur Rahman said the existing tourism policy was devised in 1990 and it was still in place with no changes at all. 

&#8220;In 2007, this two-decade old policy was re-printed and circulated, however, nothing new was added,&#8221; the minister said and urged the provincial tourism ministers to co-ordinate with the Federal Tourism Ministry with regard to formulating new policy on tourism. 

&#8220;In the new policy, we intend to make concerted and serious efforts with the provinces, private sector, travel agencies and all others who are affiliated with tourism to boost our tourism industry,&#8221; the minister said. 

The provincial tourism ministers were requested to contribute their suggestions and feedback regarding new tourism policy. 

It was decided that Inter-ministerial meeting be in the first of week of each month. 

Hoping to cash in on growing numbers of tourists, Pakistan is about to announce a comprehensive plan to expand the tourism sector through generous incentives to private investors. 

Pakistan has a varied geography stretching from the torrid Arabian Sea to the frozen Hindu Kush, the Himalayas and the Karakoram. 

Tourism has become an important earner of hard currency for many Asian countries, and Pakistan hopes it will prove the same here. 

In developing beach and mountain resorts as well as historic sites, Pakistan hopes to expand employment and improve human resources through training in the tourism industry.


----------



## Hyde

*29 percent exports growth projected: trade policy today ​*
ISLAMABAD (July 27 2009): Commerce Minister Amin Fahim is unveiling three years 2009-12 Strategic Trade Policy Framework (STPF) today according to which 29 percent in exports growth will be projected ie 6 percent in 2009-10, 10 percent and 13 percent in the successive years, sources in Cabinet Division told Business Recorder.

They said that 25-30 percent inland freight subsidy would be announced for cement, marble and engineering goods, official sources told Business Recorder. They said that Commerce Minister would also announce 7-10 percent subsidy on export of seafood items, as this sector is facing hardships due to stringent conditions of the European Union (EU), which is the major buyer.

"Four other major measures to be announced in the Trade Policy are: establishment of a hedge fund to suck up any revision in interest rate; insurance of foreign buyers; credit availability for the industrial sector; and compulsory contractual obligation by Wapda regarding power supply to the industrial sector," sources said. They said that to boost exports, customs duty on import of manmade fibres, other than polyester staple fibre, would be reduced to zero, besides withdrawal of customs duty on import of sizing chemicals.

"Warehouses will be established in major markets for brand development program to launch domestic and international brands. Rationalisation of tariff on the principle of cascading to provide the exporting industry with an environment which supports manufacturing rather than trading is also part of the STPF," sources added.

Before the announcement, the Trade Policy framework will be presented to the Cabinet for formal approval. The Cabinet is expected to grill Commerce Ministry''s top brass for failing to achieve exports target for 2008-09. Earlier, Commerce Ministry had planned to announce the Trade Policy on July 29, but it was rescheduled as the Commerce Minister will accompany President Asif Ali Zardari during his tour to Tajikistan from July 28. This means that Commerce Secretary Suleman Ghani will address the post-Trade Policy press conference on July 28.

The current year''s export target will be more or less $19.6 billion.

A couple of days ago, Prime Minister Yousaf Raza Gilani had also expressed dismay over the performance of Commerce Ministry in not achieving the export target despite spending most of the time on foreign tours .

The Prime Minister had also turned down a proposal of Commerce Ministry regarding import of three years old sports motorcycles by paying nominal duty. However, disabled persons are being allowed to import used cars on subsidised rate of duty.

In reply to a question, sources said that there would be no change in import policy for used cars despite pressure from the local car manufacturers.

Replying to a question, sources said that there would be nothing special in the Trade Policy with regard to trade with India, like the past. Instead; the Commerce Minister would announce a ban on import of vaccine from India directly. Pakistani companies would be directed to import vaccine from only those Indian firms which are certified by the World Health Organisation (WHO).

Sources said that Commerce Ministry would also envisage signing of Free Trade Agreements (FTAs) with the European Union(EU) and the United States of American(USA). They said that for diversification of exports mixed customs duty would be reduced to zero on import of manmade fibres, other than polyester fibre.

According to sources, initiatives will be taken for greater market access, developing and enlarging acceptability of Pakistan''s textiles and clothing in niche markets and diversification of exports to newer destinations. For this purpose, Free Trade Agreement(FTAs) would be proposed with the EU and USA.

The government would try to get special dispensation under the EU-GSP Scheme. The establishment of Re-construction Opportunity Zones (ROZs) will provide facility of exports to US at zero duty.

After the finalisations of the sites of Zones, the Ministry would set up a dedicated organisation with functional linkages with the provincial governments to ensure efficient utilisation of the facilities, and enforce the compliance issues.

According to sources, initiatives to promote more effective holding of local and participation in foreign exhibitions Pakistan is undertaking concrete measures for the greening of the economy and would see the climate change talks succeed but would resist any effort to misuse the climate change concerns as an NTB or TBT. "Meat and meat products, services sector gemstone and jewellery, agro processing and dairy are also at the centre of STPF, sources added.

Reactions: Like Like:
1


----------



## Hyde

*Rs 135 billion projects initiated in Southern Punjab: Khosa ​*
LAHORE (July 27 2009): Senior Advisor to Chief Minister Punjab, Sardar Zulfiqar Ali Khan Khosa has said that first time in the history of Pakistan, the present government has initiated projects of Rs 135 billion for Southern Punjab in the Annual Development Programme. In a statement here on Sunday Sardar Khosa contradicted PML (Q) leader Chaudhry Pervaiz Elahi's allegation that Shahbaz Sharif government had ignored development needs of Southern Punjab.

He said if Pervaiz Elahi had read newspapers regularly, he would have been aware of the fact that development package of Rs five billion announced by Punjab Chief Minister, Shahbaz Sharif for Southern Punjab is in addition to the funds and projects of Annual Development Programme. "It seems that due to the fear of bad news about PML-Q, the party leadership has given up reading the newspapers," he taunted.

Khosa said the former Chief Minister Elahi has mentioned allocation of Rs 117 billion during his tenure but practically the projects of even Rs 17 crore were not implemented for Southern Punjab in his regime. He said the people of Southern Punjab are asking where these Rs 117 billion were spent. It would be better if Elahi had narrated the details of those so-called development projects on which Rs 117 billion were spent.

Khosa said had a little amount out of these funds been spent in Southern Punjab, Elahi would not have been defeated from Yazman.

Reactions: Like Like:
1


----------



## Hyde

*Kaira urges advanced countries to help Pakistan overcome poverty​*
ISLAMABAD (July 26 2009): Minister for Information and Broadcasting Qamar Zaman Kaira impressively highlighted Pakistan's principled stance on Kashmir as well as role in war against terrorism during his visit to Brussels. He urged the advanced countries to provide Pakistan latest technology in the field of agriculture and industries to help overcome poverty.

The Minister reached Brussels Saturday morning on a three-day visit to the European Union's Capital and during his stay attended various functions including Kashmir Week activities. The Kashmir Week was a joint initiative of Kashmir Centre, Brussels and the All Party Group for Kashmir in the European Parliament.

The Minister also held meetings with high officials of the Belgian government and other European countries. Qamar Zaman Kaira, who has also portfolio of Kashmir Affairs and Northern Areas, while inaugurating the Kashmir Week, urged the international community to play its role for the early resolution of the Kashmir dispute.

He said peace and prosperity of the region depends on the early resolution of this six-decade old issue. Stating that EU had become new power centre in the world, he asked the European leadership to play a proactive role for early settlement of the issue, which had been the cause of three wars between India and Pakistan.

He said Pakistan had always stood by the Kashmiri brethren and it would continue its moral, diplomatic and political support for the cause of Kashmir. About the war on terrorism, he said Pakistan was itself a victim of terrorism and it was its own war. He said that after the elimination of terrorists from the soil of Pakistan, the entire world would benefit as such elements were threat to world peace.

The Minister further said that there was a need for changing the mindset of extremist people and Talibanisation was such a mindset. The ceremony was also attended by EU Member, Jean Lambert and MP Sara Ludford, who in their brief comments said the EU was interested in peaceful resolution of the Kashmir dispute. However they said principally the issue had to be resolved by Pakistan, India and the Kashmiris.

They said the world community was encouraged by high level contact between India and Pakistan at Sharm El Sheikh and hoped that the two countries would find a peaceful solution of the issue through dialogue. Qamar Zaman Kaira also held meetings with Member European Parliament and Chairman All Party Kashmir Group in EU Parliament, James Elles, and Executive Director Kashmir Centre Brussels, Barrister Abdul Majeed Tramboo.

During the meetings, he urged that involvement of Kashmiri leadership in the dialogue process was imperative, as it would help them achieve their right to self-determination. He lauded the role of EU for highlighting the Kashmir issue at the international level. The Minister said Pakistan was a sovereign country and it would not allow anybody to take any action against terrorists on its soil.

James Elles appreciated the agreement to resume composite dialogue process between India and Pakistan on all issues including Kashmir. Barrister Abdul Majeed Tramboo highlighted the activities of Kashmir Centre Brussels in creating awareness about the issue of Kashmir in European Union. The Minister also visited an exhibition of Kashmiri arts and crafts held in connection with the Kashmir Week as well as on human rights violations by the tyrant Indian forces in the Indian occupied Kashmir.

At a reception hosted in his honour by Pakistan Peoples Party (PPP), Belgium at Antwerp, the second largest city of Belgium, he said the present government inherited multiple problems from the previous dictatorial regime and was making efforts to steer the country out of this situation.

On the issue of extremism and terrorism, he said Swat had been cleared off militants in eight weeks and Internally Displaced Persons (IDPs) were returning home. He said only 50 percent of international pledges on IDPs had been fulfilled, but the government of Pakistan was utilising all its resources for rehabilitation of the displaced families.

He told the gathering under the spirit of Charter of Democracy (COD), all the political issues of the country would be resolved. He lauded support of PML-N leader Mian Nawaz Sharif to reconciliatory politics advocated by late leader Benazir Bhutto.

About power shortage, he said that during the tenure of previous regime not a single megawatt was added to the national power system, which resulted in present unfortunate situation. Kaira asked the advanced countries to provide Pakistan latest technology in the field of agriculture and industries, which would be helpful in overcoming poverty.

---------- Post added at 07:15 PM ---------- Previous post was at 07:14 PM ----------

*Pak-China Group to boost economic and commercial ties: minister​*
ISLAMABAD (July 26 2009): The Federal Minister for Investment, Waqar Ahmed Khan, said on Saturday that Pakistan was encouraging potential Chinese companies for investment in the country's various areas, particularly in the direly needed energy sector. He was discussing investment scenario with a Chinese delegation, led by the Chinese Ambassador in Pakistan Lue Zhaohui, who called on the minister in his chamber in Cabinet Division here.

The minister said that China is Pakistan's strategic partner and time-tested friend, and Pakistan attaches the highest importance to China's progress and prosperity. He expressed satisfaction over the strength of bilateral relations which are underpinned by mutual interest and mutual trust. The minister hailed China's continued assistance in various fields and said that Pakistan would welcome more Chinese companies to invest.

He also highlighted various areas for future Chinese investment, which included infrastructure, agriculture, health, construction of small and medium size dams, and banking sectors.

"We have special focus on the development of energy sectors, and offering Chinese potential companies to invest, particularly in power projects like Thar coal, and conducting hydrological and geological studies", he said. Waqar said: "We have technology in our neighbourhood, and Pakistan would welcome more Chinese participation in development projects and for this purpose we will ensure security and protection of Chinese investors in Pakistan".

He apprised the Ambassador regarding task force meeting, which was held to review the follow-up actions taken on the President's directives to expedite various co-operative agreements in areas including building of dams, Thar coal project, transfer of hybrid technology co-operation between PARC and Chinese Academy of Agricultural Sciences (CAAS), export of northern areas fruits to China, MOUs on development of fisheries and sugarcane and the joint Pak-China economic commission.

He also discussed other projects being executed by Chinese companies in rest of the country and Balochistan. Waqar said that both sides were making efforts for convening joint economic group meeting to boost economic and commercial ties.

The minister reiterated Pakistan's support for China's sovereignty, stability, and progress, and expressed his heartiest felicitation to the Chinese's government and its people on the eve of 60th anniversary of China's independence. The Ambassador of China hailed the government's new liberal investment policies and strenuous efforts to resolve the issues of the investors.

He informed the minister regarding Chinese companies' desire to invest in different areas of energy sector; including hydropower. The Ambassador assured the minister that China would take part in all the major projects to share their expertise with Pakistan.-PR

Reactions: Like Like:
1


----------



## Omar1984

*Lacklustre trade policy announced ​*

* Six percent growth target set for current fiscal year 
* Five funds to be created to promote exports 
* Insurance cover to be provided to visiting foreign buyers 

By Sajid Chaudhry 

ISLAMABAD: The government announced a somewhat lacklustre trade policy for 2009-10 and the trade policy framework for 2009-12 on Monday. However, there seems a conscious attempt to create foreign investment-friendly conditions, with a growth target of 6 percent set for the current fiscal year. 

The federal minister for commerce unveiled the initiatives, and said the government would provide insurance cover to visiting foreign buyers. 

Also, five funds are to be established to promote exports &#8211; a fund to hedge mark up rate hikes; an export investment support fund; a technology, skill and management improvement fund; a special fund for the light engineering sector; and a services export development fund. 

He said an inland freight subsidy on the export of seven types of products would be available, but announced a ban on the import of vaccines from India. 

The import of used ambulances with a minimum useful life of 10 years would be allowed if donated to a charitable or non-profit organisation. 

Major initiatives:

* Duty-free import of customised cars up to 1,350CC allowed for disabled people

* Vehicles imported by overseas Pakistanis to be released to legal heir in case of death

* Duty-free import of one used motorised wheelchair to be allowed 

* Limit for physicians&#8217; samples increased to 20&#37;

* Import of used computer components allowed 

* 25% subsidy for brand development activities on surgical instruments, sports goods, cutlery sector

* Research and development centres to be established in Karachi and Sialkot for leather exporters 

* 25% freight subsidy on export of live seafood products by air

* Facility to remit $10,000 per invoice as advance payment for import of spare parts


----------



## Omar1984

*Trade Policy 2009-12 aims to set country on path of sustainable high economic growth through exports ​*
ISLAMABAD, Jul 27 (APP): The Trade Policy 2009&#8209;12 aims to set the country on the path of sustainable high economic growth through exports. &#8220;The fundamental principles of the Strategic Trade Policy Framework are rooted in the manifesto of Pakistan People&#8217;s Party i.e. Growth with Equity &#8209;Greater Opportunities for gainful employment,Sound macro&#8209;economic framework for trade environment, Concern with poverty eradication and environmental protection, Investing in Human resources,Targeting Poverty alleviation,Promoting private. 

sector as engine of growth, Focus on small scale sector particularly in agriculture&#8221;, Makhdoom Amin Fahim Minister for Commerce said while announcing the trade policy 2009&#8209;12 on Radio/TV here on Monday afternoon. 

Makhdoom Amin Fahim said that as we all know Pakistan has been facing many difficulties on the non&#8209;economic front, which have led to further deterioration of the business climate. 

He said that the issues created due the problems which &#8220;we inherited such as energy crises, business closures, declining long term foreign investment have been worsened by the war on terror in which Pakistan is a frontline state&#8221;. 

He added that the direct and indirect costs of this war do not only include the loss of life, property and business assets, but also the deterioration of country&#8217;s image as a result of which the business to business interaction becomes more difficult. 

However after a critical phase of weak domestic macroeconomic situation and reduced external demand owing to the global financial crisis, Pakistan economy is now undergoing a recovery phase, he remarked. 

Coming to the trade performance of Pakistan, the year 2008&#8209;09, he said that the year witnessed unprecedented economic downturn especially in our major markets of export i.e. USA & EU. Consumption decreased in the developed world and the global trade shrank by 9&#37;. 

Global recession adversely affected exporting countries and Pakistan is no exception to it. Exports from Pakistan declined to US$ 17.8 billion as compared to previous year&#8217;s exports of US$ 19.1 billion. 

Imports also witnessed a relative decline and fell by 13% as Pakistan&#8217;s imports during 2008&#8209;09 stood at US $ 34.9 billion as compared to US $ 40.4 billion in 2007&#8209;08. 

During 2008&#8209;9, he said the export of Textiles, which account for around 54% of Pakistan&#8217;s total exports, dropped from US$ 10.6 billion to US$ 9.6 billion. 

The major losers in this regard were Readymade Garments, which dropped by 21.7%, Cotton Yarn, which dropped by 15%, Bed linen, which dropped by 10.2%, Art Silk & Synthetic Textiles, which dropped by 22.1% and Cotton Fabric by 4.0%. The exports of finished leather and leather manufacturers dropped from US$ 1.1 billion to US$ 0.8 billion registering a drop 24.5%. 

The Rice exports have registered an impressive growth from US$ 1.84 billion to US$ 1.99 with an increase of 8.2%. Engineering goods also registered an increase of 26.1% from US$ 211.3 to US$ 266.4 million. 

In this regard, the major contributors have been the specialized machinery, transport equipment, electric fans etc. 

The export of Jewelry also rose from US$ 213.4 million to US$ 288.4 million, registering an increase of 35%, he added. 

The Commerce Minister said that taking a long term view of Pakistan&#8217;s export performance over the last ten years, Pakistan&#8217;s share in the global market, according to WTO data, has declined by more than 1/3 to 0.13% in 2009 from 0.21 % in 1999. 

Minister for Commerce Makhdoom Amin Fahim observed that during the last few decades, the global trade has undergone a major structural change as far as the product composition and geography of trade is concerned. 

&#8220;There has been an explosion of non textile manufactured exports at the global level. Whereas, the share of non&#8209;textile manufactured in Pakistan&#8217;s exports has gone down from an already low figure of US $ 5.83 billion (25.08%) in 2007&#8209;08 to US $ 3.12 billion in 2008&#8209;09 (17.32 %)&#8221;. 

The Minister said that at the same time, our competitor economies, particularly in Asia, have significantly enhanced their share in non&#8209;textile manufactured. 

&#8220;As far as the Textile and Clothing sectors are concerned, the rate of growth in clothing is much higher than textiles in the international market. Whereas, Pakistan, managing to keep its market share in textiles to an extent, has been slow in benefitting from the expansion in higher value Clothing sector&#8221;, he remarked. 

He said that the principle reason for this growing disconnect between the evolving global market structure and our export performance is the erosion of the competitiveness of Pakistan&#8217;s traditional exports in general and the country&#8217;s weakness in diversifying its product and market mix. 

In view of the above situation, the government,he said in a true democratic spirit, took all stakeholders on board and has devised a strategy to go all out to remain firm in these difficult economic times, keep focused on our strengths, and convert challenges into workable opportunities. Trade Policy 2009&#8209;12 aims to set the country on the path of sustainable high economic growth through exports. 

Mr. Fahim said that the fundamental principles of the Strategic Trade Policy Framework are rooted in the manifesto of Pakistan People&#8217;s Party i.e., &#8209;Growth with Equity,Greater Opportunities for gainful employment,Sound macro&#8209; economic framework for trade environment,Concern with poverty eradication and environmental protection, Investing in Human resources,Targeting Poverty alleviation, Promoting private sector as engine of growth, Focus on small scale sector particularly in agriculture. 

He said that as guided by the prime minister and his cabinet, this policy is geared towards: Contributing towards poverty alleviation, Achieving export led growth and providing relief to the common man through the provision of jobs and services, will focus strongly on development and facilitation Ladies and gentlemen, the policy is set in a three years Strategic Trade Policy Framework (STPF), which &#8220;we strongly hope would result in the enhancement of export competitiveness of Pakistan to enable Pakistani companies overcome the shocks of international economic crisis through a set of integrated and holistic policy and measures. 

The minister unveiling the Strategic Trade Policy Framework for the next three years, said that it will be a medium term road map in order to ensure certainty of policies which in turn will act as a catalyst in the revival of domestic commerce and international trade in Pakistan, with the precise objective of bringing about a structural transformation in Pakistan&#8217;s exports. 

The Minister for Commerce said that &#8220;We have to bear in mind that this trade policy comes in the backdrop of a number of challenges&#8221;. 

These challenges, he said include:Infrastructure deficit, particularly in energy, Poor innovation and technological infrastructure, Low labour productivity, low levels of manufacturing value addition, little Foreign Direct Investment in manufacturing and exportable sectors, anti&#8209;export bias in taxation, increasing costs of exports as compared to imports, lack of product and geographical diversification in exports, absence of economies of scale in the production processes, especially in the Small and Medium Enterpris sector which accounts for a vast majority of the enterprises in the country. 

Minister for Commerce said that his Ministry realizes that &#8220;we need a paradigm shift to enable our firms and entrepreneurs to become globally competitive and export those products which are valued more in the international market&#8221;. 

This, he said would involve structural transformation in the form of increased mobility of labor and capital across sectors and change theirproduction processes and ultimately the content of exports. 

&#8220;We hope that we would be able to begin effecting this transformation through the Strategic Trade Policy Framework 2009&#8209;12, with Competitiveness Development at the centre of all our trade promotional efforts and interventions. 

Very soon, we should be able to see Pakistan producing and exporting a more sophisticated and diversified range of products, resulting also in an increase in returns for sectors ready to embrace the global competitive environment&#8221;. 

The Minister said that as far as the enhancement of the export competitiveness is concerned, the government aims to: first, overcome the most pressing supply&#8209;side constraints such 

as the shortage of energy, cost of capital and difficulties linked with adverse travel advisories. 

Second, he said is to enhance competitiveness of textile and clothing, with the help of Textile Policy due to be announced shortly which focuses on new investments, modernization of machinery and increasing total factor productivity. 

Third, he said is to deepen and diversify export markets particularly our major trading partners US and EU as well as countries with which Pakistan has signed a free trade agreement such as China, Malaysia and Sri Lanka. 

Fourth,he said is to promote trade in services which globally have a more stable demand pattern and are less prone to detrimental external shocks seen for the case of commodity trading. 

Fifth,he said is to embark on domestic commerce reform and development where key areas such as wholesale and retail trade, storage and warehousing, transport, regulatory environment, promotion of modern business and taxation practices require immediate attention. 

Mr. Fahim said that in order to address our strategic objective of increasing the sophistication level of Pakistan&#8217;s exports products and enhance firm level competitiveness, our government aims to:Integrate the local productive capacity with globally integrated supply chain. 

Coordinate and leverage the skill up&#8209;gradation programmes in the priority sectors and strengthen the institutions entrusted with the skilling. In this regards, skilling of women workers would be given special importance. 

Acquire and upgrade technology level so that Pakistan can move away from the traditional and low value export products. 

Promote enterprise and entrepreneurship development. The Ministry of Commerce proposes to set up an Enterprise and Entrepreneur Fund [EEF] for incentivising the improvements in firm management capabilities in ten sectors chosen to push Pakistan higher on the sophistication ladder. 

Rationalize the tariff policy keeping in view the structure of value addition in various industries. 

The Commerce Minister further said that in order to address our strategic objective of product diversification for Pakistan&#8217;s exports our government aims to: 

Provide a clear policy framework on the development of chemical sector. Continue the successful initiatives provided to the Pharmaceuticals sector in the previous trade policy and help introduce necessary regulatory and initiate new development programmes. 

Address the supply side constraints in the meat and meat products industry Facilitate the foreign direct investment and export potential of mineral sector. 

Promote agro&#8209;processed exports Support the light engineering sectors to export more in high paying markets. The trade policy aims to create a special fund of Rs 

2.5 billion for product development and marketing in order to increase the sophistication level of the sector and realize true potential of this sector. 

Devise a medium term strategy to boost exports of gems and jewellery. 

Devise a comprehensive long term strategy for significantly improving Pakistan&#8217;s export of services. Provide incentives to facilitate technology acquisition, adoption, replacement with the twin objectives of energy efficiency and environmental protection To launch a comprehensive Leather and leather products export Plan in consultation with the major players of leather sector and to launch a comprehensive plan for the promotion of export of Services The Commerce Minister said that in order to address our strategic objective of pursuing greater market access through extensive trade diplomacy the government aims to:Actively participate in the Doha Development Agenda negotiations in orderto maximize the gains from trade diplomacy. 

Making free trade agreements a success in terms of increase in bilateral and regional export volumes with favorable terms of trade for Pakistan. 

Engage with the larger trading partners like US and EU for greater market access and utilize the Reconstruction Opportunity Zones for providing zero duty facility for exports to US and to strengthen and utilize the trade officers better for the protection and promotion of Pakistan&#8217;s commercial interest abroad. 


Minister for Commerce Makhdoom Amin Fahim said that enhancing export competitiveness of Pakistan would largely depend upon the quality of governance and management structures deployed to implement it. 

He said that in order to address our objective of institutional reform for prudent implementation of Strategic Trade Policy Framework the Ministry of commerce would take the following measures: 

We would employ the modern logical frameworks to implement and evaluate different interventions and initiatives of the Strategic Trade Policy Framework and would establish 3 Implementation Management Units. 

We would set up an Export Investment Support Fund to channelize the public investments to the selected sectors with clear objective of effecting the structural transformation. 

My Ministry would ensure significant improvements in its own working as well as in the working of Transport and Trade Facilitation Project, Trade Development Authority of Pakistan, National Tariff Commission, Pakistan Institute 

of Trade and Development, Pakistan Horticulture and Export Development Board, Directorate General of Trade Organizations, Trade Offices Abroad and other relevant organizations. 

The Ministry of Commerce would establish efficient steering and coordination mechanisms that make the functional linkages between the Structural Trade Policy Framework with the Planning process in Pakistan and relevant line and sectoral ministries My Ministry would lead from the front in shaping muchmore effective Public&#8209;Private dialogue in the realization of the Objectives of the Strategic Trade Policy Framework. 

As far as the monitoring and evaluation of the Strategic Trade Policy Framework is concerned, the Pakistan Institute of Trade and Development Islamabad, an independent policy think tank of the Ministry of Commerce, would undertake a systematic evaluation of the impact of Trade Policy 2009&#8209;12 on the trade performance of Pakistan with a view to enhance the effectiveness of different trade policy interventions, suggest course corrections and lay the scientific foundations for the preparatory work for the next Trade Policy. 

As far as giving an export target for the coming years is concerned, the Minister said that the Ministry believes, on the basis of an extensive consultative process, that there is a consensus among all the stakeholders in Pakistan&#8217;s international trade that the country&#8217;s exports can become an engine of growth and prosperity in Pakistan, if the relevant institutions, both in public and private sector implement a holistic strategy to enhance competitiveness of exports. 

However the growth during 2009&#8209;10 would remain rather sluggish partly due to slowdown in global demand and also due to the fact that all the programmes and measures of Strategic Trade Policy Framework would have a brief time lag before coming into full force. 

The Ministry therefore has set the export growth target of 6 % for 2009&#8209;10 and 10 and 13 % for each of the successive years. 

The Ministry for the first time is introducing a few intermediate indicators, which contribute to the enhancement of export competitiveness. It is expected that by 2012 the competitiveness ranking of Pakistan will improve from 101 to 75; the share of engineering exports will increase from 1.5 % to 5 %; value addition of cotton to increase from US $ 1000 to $ 1500 per bale; and regional trade to expand from 17 to 25 %. 

The Strategic Trade Policy Framework, he said has sets out the policy guidelines and identifies the principle action areas. 

&#8220;We hope to complete the work on identifying the business processes to improve within the first quarter of the financial year and address them forthwith. For the realization of other strategic objectives we hope to take the stock of the on ground situation and propose the activities which would start rolling out within the second quarter. We strongly hope that the activities and programs thus started would be completed by June 2012. But we have not ignored the pressing supply side issues and other legitimate requirements of the export sector and are hereby suggesting several measures to facilitate exports&#8221;, he remarked. 

The Minister said that businesses need short to medium term certainty in the interest rate for investment. 

Currently, there is no policy instrument provided by the government or private sector for providing finance at fixed interest rates for a short to medium term. 

It has been decided to create a Fund to hedge markup rate hikes. The Ministry will work with the Ministry of Finance and State Bank of Pakistan towards this end. 

He said that in order to ensure predictability of electricity supply it has been decided that Ministry of Water and Power would work with the Electricity Distribution Companies, to enter into agreements with clusters of industries whereby electricity is supplied at mutually agreed times. The agreements would have punitive and compensation clauses; and the compensation could be in the form of electricity charges credit. 

The provision of insurance cover for visiting buyers can go a long way in restoring the investor&#8217;s confidence. These days, the purchasers, inspectors and sourcing agents of overseas buyers are reluctant to travel to Pakistan and the exporters ave to meet them in other countries, This increases cost of doing business. It has been learnt that apart from travel advisories that stop the purchasers/importers from coming to Pakistan but also the fact that the insurance companies refuse to cover the period of stay in Pakistan on usual rate of premium. To overcome this problem, it has been decided to launch a scheme for picking up the full cover for Pakistan for their valid insurance policies. The scheme will be funded from Export Investment Support Fund and managed by National Insurance Corporation, he remarked.


----------



## Omar1984

*Federal cabinet approves Trade Policy 2009-10; PM says policy aimed at poverty alleviation ​*
ISLAMABAD, Jul 27 (APP): The federal cabinet on Monday approved the Trade Policy 2009-12, aimed at addressing issues of poverty alleviation, employment generation and development of industries.Prime Minister Yusuf Raza Gilani while chairing the cabinet meeting specially convened to discuss Strategic Trade Policy Frame Work 2009-12 and Trade Policy 2009-10, said the policies would greatly benefit the commonman. 

&#8220;The trade policy is aimed at poverty alleviation, employment generation, and export-led growth to bring in greater benefits to the commonman besides focusing on development of agriculture, textile, Small and Medium Enterprisers and domestic raw materials,&#8221; the Prime Minister said. 
Gilani said in the present economically challenging times, there was no other option but to succeed. 

&#8220;And we will succeed with the support of Pakistani nation, that is united like never before and is firm in its resolve to make the country counted in the comity of nations,&#8221; he said. 

The Cabinet reviewed the demand and supply of electricity in the country and discussed ways and means to overcome power shortage by increasing supply and adopting measures for energy conservation. 

The Prime Minister said, &#8220;I understand when common people, traders and industrial workers come on roads to protest against loadshedding. I share their concern and my sympathies are with them.&#8221; 

However, he said that protesters should realize that the crisis was inherited by the government. 

He said addressing the power crisis was the government&#8217;s top priority and was part of his government&#8217;s first 100 days. 

&#8220;Progress has been made as implementation of new IPPs and Rental Power Plants is on the track,&#8221; he said. 

Gilani said a committee of ministers had been constituted to monitor the situation on daily basis. 

With improvements in oil and gas supplies and coming into system of power from Mangla this week, the situation has started improving, he added. 

He directed the relevant ministries to work on keeping the existing power generation capacity running. He directed the Ministry of Water and Power to ensure commissioning of new IPPs and Rental Power Projects as per schedule. 

The Prime Minister appealed to the nation to bear the situation and assured that people would see visible improvement in power supply situation and the deficit would be bridged. 

The meeting congratulated the Ministry of Environment for setting up a world record by planting over 500,000 saplings in a single day which has been duly recorded in the Guinness Book of World Records. 

The Cabinet formed a committee to consider the resolution passed by the Senate regarding restoration of the Haj quota for the Senators. The committee headed by the Minister for Religious Affairs comprises Leader of House in Senate, Chief Whip in the National Assembly and Minister for Parliamentary Affairs. 

On the issue of displaced persons, the Prime Minister said the government was keenly working on their safe return and rehabilitation. 

&#8220;It is a matter of great satisfaction that military operation in Swat and FATA is successfully meeting its desired objectives and peace is gradually returning to these areas,&#8221; he said. 

The Prime Minister said financial assistance to IDPs was being made in a transparent manner and the phased return of IDPs had gradually picked up the momentum. 

He hoped that full return of IDPs would be completed in about a month&#8217;s time in an orderly and peaceful manner. 

He extended his appreciation to all political parties, federal and provincial agencies and non-government organizations including the UN agencies for their support and extraordinary work for the IDPs. 

The Prime Minister reiterated that fight against terrorism would continue till complete elimination of the militants and return of peace and stability in the affected areas.

Reactions: Like Like:
1


----------



## Omar1984

*Budgetary allocations for education to reach 10 pc of GDP next year:Kaira ​*
ISLAMABAD, Jul 27 (APP): Minister for Information and Broadcasting Qamar Zaman Kaira said on Monday that the government plans to increase budgetary allocations for education in the next financial year up to 10 per cent of the Gross Domestic Product. While speaking with media persons at a &#8220;A Level High Achievers Ceremony at Beaconhouse School System,Banigala,he said that in the present budget the present government has doubled the funds for education sector.&#8221;History shows that only those nations have progressed which attached top priority to education of their youth&#8221;,said the minister.He said that despite several challenges being faced by the country,the government was committed to increase the funds for education sector manifolds. 

To a question about General Pervez Musharraf&#8217;s recent statement, he said that Pakistan Peoples Party has deal with the masses of the country and not with any dictator.&#8221;Had Shaheed Mohtarma Benazir Bhutto struck any deal with Musharraf,she would not have been martyred.She had commitment with democracy,and was fully aware about dangers to her life but she returned home and sacrificed her life for this country,&#8221;he added. 

Kaira said that the process of return of Internally Displaced Persons (IDPs),in Swat and adjoining areas was going on smoothly and hoped that the process would be completed within one month. 

Qamar Zaman Kaira said that the issue of rental power projects was being politicized although this was the only option to overcome power crisis on war footing. 

He said that the present government has no Aladdin&#8217;s lamp,and cannot resolve the issue overnight.However,he said that several projects were near completion and the menace of load&#8209;shedding would be eliminated by December. 

The minister said that the government had planned to start work on several hydel projects,which would produce cheapest electricity. 

To a question about Kalabagh dam,he said that as there was lack of consensus on this project there was no point in launching this project. 

Earlier while addressing the ceremony he said that Pakistan was envisioned to be a welfare state but unfortunately,it was converted into a security state which left very bad impact on the social sector.&#8221;Social sectors like health nd education were neglected as Pakistan had to spend more on defence&#8221;,he added. 

He said that provision of education was responsibility of the government,but the some private chains were rendering great service in this filed.

Reactions: Like Like:
1


----------



## ejaz007

*UBL completes fifty years *

KARACHI: To mark the United Bank Limiteds successful golden jubilee, it has produced an exclusive audio CD comprising songs and narratives, based on the selected works of Pakistans revered, national poet-philosopher, Dr Mohammad Iqbal. Incorporated on July 27, 1959, UBL started operations in November that year. UBLs operations now extend to 11 countries outside Pakistan, through 17 branches, representative offices, subsidiaries and joint ventures apart from over 1100 domestic branches within Pakistan. staff report

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## Omar1984

*&#8216;Govt to generate 1,988MW from rental power plants by Dec 2009&#8217; ​*
By Ijaz Kakakhel

ISLAMABAD: To overcome electricity crises on emergency basis, the government plans to generate 1,988 megawatts (MW) by December 2009 through rental power plants, sources said. 

Federal Minister for Water and Power Raja Pervez Ashraf on Monday informed the Cabinet Committee on Power Crisis in a presentation that 11 projects of rental power plants would be completed by the end of this year. Through completion of these projects, the government would be able to add 1,988MW power to the system. 

The rental power plants are Sumandari Rd, Faisalabad, which will generate 150MW and it would be completed by August 2009. Oil will be used as fuel for the project. Guddu with a generation capacity 110MW (gas-based) would be completed by September 2009. Satiana Road, Faisalabad having power generation capacity 200MW would be completed by November 2009 and it would use oil as fuel. 

Karkey, Karachi with power generation capacity of 232MW would be completed by November this year and it would also use oil as fuel. Sahuwal, Sialkot having power generation capacity 150MW and it will use oil as fuel would be completed by December 2009, Piranghaib, Mulatan having power generation capacity 192MW would use oil as fuel and would also be completed by December this year. The oil-based Ludewala, Sargodha having power generation capacity 200MW would be completed by end of this year, sources maintained. Asharf further informed the cabinet meeting that Gulf, Eminabad, Gujranwala rental power project having 127MW would be completed by end of this year. Independent, Gojra, having power generation capacity of 221MW and using oil as fuel would also be completed by December this year. The Reshma, Raiwind, Lahore rental power project having power generation capacity of 201MW would be completed by end of this year and the last one Walters, Karachi having power generation capacity of 205MW would also be completed by December 2009.

Overall, these 11 rental power projects would be completed by end of this year and it would generate a total of 1,988MW power that would be added to the national grid station, which would greatly help the government in its promise to remove load shedding completely by end of this year, the minister informed the meeting. 

He also informed that minimum efficiency requirements are 30 percent on oil and 33 percent on gas, while minimum annual availability requirements are 85 percent on oil and 92 percent on gas. Sources further informed that the minister explained to the meeting about reasons for tariff variation and said projects were located at different sites as per system requirements. Projects have different fuel consumption and different fuels and variations in project costs due to difference in technology and age of the machinery. 

Explaining the schedule of all power generation projects (rental and IPPs) by end of this year, the minister in its presentation explained that a total of 3,106MW would be added to the system. 

On demand side, the minister said the government also planned and carried out several measures to curtail the demand for electricity. These measures included public awareness campaign through media, introduction of day light saving time, staggering of industrial holidays, interaction with industries for reduction of load during peak hours especially that of steel furnaces. 

The minister expressed the hope that the country would be able to get rid of load shedding permanently by end of this year and also take appropriate measures to meet the power demand by 2015 and 2025.

Reactions: Like Like:
1


----------



## Omar1984

*Power generation units to remain underpressure until Sep 15, says Ashraf ​*
ISLAMABAD: The power generation units of the country would remain under-pressure till September 15, 2009, Federal Minister for Water and Power, Raja Pervez Ashraf said. He, however, reiterated his stance that in August 600MW additional electricity would be injected in the system, which would provide relief to the consumers. The minister expressed these views during a chat with journalists after meeting of the Cabinet Committee on Energy Crisis (CCEC) held today under his chairmanship. He also claimed that there would be no unannounced or forced load shedding and the chief executive of the distribution company would be responsible of unannounced load shedding in their respective jurisdiction. However, in case of any fault in the distribution system, the chief executive would inform the chambers of commerce and the civil society and took them into confidence for emergency load management in the particular area, the minister maintained. Due to climate changes, the weather had become hotter and the short fall had risen to 3500MW. The use of 6.8 million new electric appliances had burdened the already loaded system resulting in an increase in the shortfall. He said the power situation was improving gradually and the government would fulfill its commitment with the nation to end menace of load shedding by December 31, 2009. The homework in this regard had been completed and the new projects would generate power as per schedule under a road map prepared by the ministry to overcome the crisis. He said all the power generation units operating on capacity. To a question, he said that all the units of Mangla power house were in working condition but due to low water releases as per indent for irrigation, the government is not able to actualize its potential. When the water releases improve from the dam, it would also increase the hydel power from Mangla, however, Tarbela was generating maximum power due to high water releases. staff report


----------



## Omar1984

*Real estate is a lawful business: SECP ​*
Staff Report 

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) while addressing misconception in general public regarding real estate sector informed that the Companies Ordinance, 1984 deals with the incorporation of companies and there was no legal restriction on real estate companies being incorporated under the ordinance, as real estate was a lawful business.

A press release issued here on Monday revealed that the SECP could not regulate the real estate sector. Under the Constitution of Pakistan, this sector falls within the ambit of the provinces and not federal level institutions like the SECP.

Most of the real estate development projects in the country were being carried out by societies, trusts, authorities and such other vehicles, which in any case could not fall within the jurisdiction of the SECP.

Advances received by companies as pre-payment for tangible assets agreed to be delivered at a future date could not fall in the definition of deposit. However, currently real estate development companies, which could not possess the lands were required to get approval from the SECP for inviting advances through media advertisements. In this respect whatever limited role the SECP has, it was pursuing it diligently. The SECP's role came to an end after approval of advertisements.

Any disputes between the developer and a customer being contractual obligations between parties, also could not fall within the jurisdiction of the SECP and falls within the jurisdiction of the courts of law.

Despite this, the SECP had time and again launched public service campaigns against unscrupulous elements to bring into the knowledge of the general public, the fraudulent activities of such elements by publishing advertisements in print media.


----------



## Omar1984

*Trade policy to help companies dodge shocks of int&#8217;l crisis ​*
By Saad Khan 

KARACHI: The Trade Policy 2009-12, set in a three-year Strategic Trade Policy Framework (STPF), would result in the enhancement of export competitiveness of Pakistan enabling Pakistani companies overcome the shocks of international economic crisis through a set of integrated and holistic policy and measures.

Federal Minister for Commerce, Amin Fahim, in his trade policy speech outlined the fundamental principles of the STPF, which are rooted in growth with equity, greater opportunities for gainful employment and sound macro-economic framework for trade environment. The STPF will be a medium-term road map in order to ensure certainty of policies, which in turn will act as a catalyst in the revival of domestic commerce and international trade in Pakistan, with the precise objective of bringing about a structural transformation in exports. 

This trade policy comes in the backdrop of a number of challenges. These include, infrastructure deficit, particularly in energy, poor innovation and technological infrastructure, low labour productivity, low levels of manufacturing value addition, little foreign direct investment in manufacturing and exportable sectors, anti-export bias in taxation, increasing costs of exports as compared to imports, lack of product and geographical diversification in exports, absence of economies of scale in the production processes. 

There is a need of a paradigm shift enabling the firms and entrepreneurs to become globally competitive. This would involve structural transformation in the form of increased mobility of labor and capital across sectors and change their production processes and ultimately the content of exports. 

The government aims to begin effecting this transformation through the STPF, with competitiveness development at the centre of all trade promotional efforts and interventions. As far as the enhancement of the export competitiveness is concerned, the government aims to overcome the most pressing supply-side constraints such as the shortage of energy. The announcement of travel advisories by some foreign governments has had a negative impact on the visit of the foreign buyers. The policy aims to counter this negative impression of the country through the active support of the commercial councilors.

The policy also envisions enhancing the competitiveness of textile and clothing, with the help of textile policy due to be announced shortly which focuses on new investments, modernisation of machinery and increasing total factor productivity. The policy also aims to deepen and diversify export markets particularly with the major trading partners US and EU as well as countries with which Pakistan has signed free trade agreements such as China, Malaysia and Sri Lanka. The trade in services is on the boom as businesses are finding cheap labour enclaves in a world fraught with competition and cost cutting. One of the cornerstones of this policy is to promote trade in services, which globally have a more stable demand pattern and are less prone to detrimental external shocks seen for the case of commodity trading. The Ministry of Commerce proposes to set up an Enterprise and Entrepreneur Fund (EEF) for incentivising the improvements in firm management capabilities in ten sectors chosen to push Pakistan higher on the sophistication ladder.


----------



## Omar1984

*Textile policy to focus on reviving exports ​*
ISLAMABAD: First ever textile policy, which would be announced shortly, will focus on enhancing domestic capabilities for efficient use of resources through skills development, technology up-gradation and provision of infrastructure facilities. Federal Minister for Commerce, Makhdoom Amin Fahim, during his trade policy speech said that the government of Pakistan recognises the importance of the textile and clothing sectors. To provide a foundation for sustainable growth, various initiatives are being planned through a separate and first ever Textile Policy, to be announced shortly. The textile policy takes a holistic approach and will contain short- and long-term measures to support the textiles and clothing manufacturers overcome the current problems created by the global down turn and equip them with necessary ingredients to meet the growing competitiveness and challenges of the future. The strategic trade policy framework would leverage the Textile Policy through its diverse measures and policies directly and indirectly. The Ministry of Commerce would lend its support to the Ministry of Textiles towards an efficient implementation of Textile Policy. In this regards, the measures to promote new investment and modernisation of machinery; diversification of exports mix; to encourage the establishment of domestic and international brand; Rationalization of tariff on the principle of cascading to provide the exporting industry with an environment which supports manufacturing rather than trading would be taken. Initiatives for greater market access, developing and enlarging acceptability of Pakistani textiles and clothing in niche markets and diversification of exports to new destinations will also remain a key focus. sajid chaudhry


----------



## Omar1984

*&#8216;Pro-poor growth strategies must for food security&#8217; ​*

ISLAMABAD: Pakistan is gripped by poverty crisis, which has already driven people to acts of desperation and increasing food production alone will not ensure food security unless the destitute have enough income to buy the food they need, former minister, Sartaj Aziz, said this while delivering a lecture on "Food Security for the Poor" organised by Pakistan Poverty Alleviation Fund (PPAF). 
Aziz said an average agricultural growth rate of at least 4 percent per annum in the next decade - 2010-2020, implementation of a pro-poor growth strategy and provision of non-farm employment on a substantial scale is mandatory to achieve food security in the country. 
In Pakistan, he said, the level of poverty had declined from 34.4 percent of the population in 2001 to 28 percent in 2005-06, but the high food inflation in the last three years increased this ratio to 33 percent once again, pushing at least 11 million people below the poverty line. According to the recent study conducted by Beaconhouse National University Institute of Public Policy, if no policy action is taken in the current trend then an additional 22 million people would be impoverished over the next four years. 
Aziz said building a transparent and well-managed system of safety nets to provide income support to very poor households and evolving an efficient and equitable system of food procurement, storage and distribution were also a must for the food security to the poor. He said that Pakistan has so far not evolved a comprehensive national food security strategy. He said it was indeed unfortunate that during the last few years the level of food security of the people of Pakistan has fallen. As an example, he said, the level of wheat production in 2007-08 was the same as that attained almost a decade ago while the population has increased by almost 20 percent. 
Former finance minister said that food security has, in fact, been low since 2001-02, which was a consequence to low food production levels and relatively higher inflation in food prices. Given the underlying conditions of food security, he said, it was difficult to visualize simultaneously the reported fall in incidence of poverty, particularly in the face of declining food affordability. 
He said the task ahead of restoring food security is indeed a challenging one. But with a democratically elected government in place there was already evidence of a return of the policy focus towards agriculture. Better prices (especially of wheat) were being offered to growers, taxes on agricultural inputs have been withdrawn, a large subsidy had been given on phosphate fertilizer and more public investment is being diverted towards rural infrastructure. He said a good start had been made but more needed to be done in terms of improving the functioning of agricultural markets, maintaining reserve stocks promoting agricultural research and extension and increasing investment in the water sector. Simultaneously, he said, plans for cash transfers to the poor as food support need to be implemented quickly. 
He said efforts to increase rural population's access to land and livestock and to enhance basic education opportunities are critical to increasing the level of agricultural output, improving nutrition, and the alleviation of poverty. According to the World Food Programme Survey for the Vulnerability Analysis and Mapping Unit, as many as 77 million people up to March 2008 are deemed "food insecure", where the food insecure population is defined as those consuming less than 2350 calories per person per day. staff report


----------



## Omar1984

*Approval of 18 scrips for DFCM: Trading volumes to improve gradually ​*

By Tanveer Ahmed

KARACHI: After the approval of 18 scrips for deliverable futures contract market, once again derivatives products started functioning at the Karachi stock market, which analysts believed would help the market to improve trading volumes.
The Securities and Exchange Commission of Pakistan (SECP) had banned the futures contract in the market three months immediately after the imposition of restrictions on Continuous Funding System (CFS). However, actual trading in one-month single stock futures started after a gap of 11 months when last future contracts took place one-month back since the market was placed under the floor.
&#8220;The comeback of futures contracts will help provide the market much-needed support to arrest the dwindling volumes at the market, which was once famous for its huge turnover of shares,&#8221; Chief Executive Topline Securities Mohammad Sohail noted.
Although, the volumes in futures would not be as healthy as they used to be but it is a step in right direction, as it will provide the opportunity to hedge, leverage and short, he added. How these future contracts are different from the previous ones, analysts pointed out these single stock futures will be settled through delivery and not cash as happened in many countries.
Comparing the futures contract system in Pakistan with the regional markets, analysts said that in India, which is one of the biggest markets of the world for single stocks futures, the settlement is cash-based. But in Pakistan, cash-settled single stock futures that were introduced in 2007 failed to attract turnover and investor attention. Compared to the old futures contract that was introduced in 2003, there are few differences in the recently introduced deliverable futures. The margin is 100 percent cash/bank guarantee versus 50 percent cash previously. Moreover, mark to market profit will be retained by the exchange that was distributed previously. 
And this time instead of special margin, concentration margin will be applied. All these indicate that trading in futures will not be as easy as it was previously because it will require a lot of cash margin.
In the last three years (2006, 2007 and 2008 before the price freeze), average daily volumes in the futures market was Rs 10.3 billion or $165 million compared to cash (ready) market turnover of Rs 26.4 billion or $425 million. That is futures used to be 39 percent of cash market. But this time these volumes will be less due to the even more strict margin regime as already mentioned. 
Moreover, last time these futures were available on 42 names (over 70 percent of the market capitalisation) as against on 18 stocks (57 percent of market capitalisation) this time. On the first trading day, futures volume was only 1 percent of cash market. But analysts thought that it will improve going forward once the market participants observe the new changes. 
&#8220;The perceived risk of lenders in the derivatives market after the last year crisis will reduce gradually and not immediately,&#8221; Sohail added.


----------



## Omar1984

*Trade Policy 2009-12: Traders express mixed reaction ​*
* PTA appreciates govt's initiative for launching comprehensive export plan for leather and leather products 

By Razi Syed

KARACHI: The business community expressed mixed reaction over the announcement of Trade Policy 2009-2012, announced by the Federal Minister for Commerce, Makhdoom Amin Fahim Monday.
The policy is set in a three-year Strategic Trade Policy Framework (STPF) aimed to bring forth a positive strategic change in the export sector of the country.
The government has fixed export growth target of 6 percent for 2009-10 and 2010-11 and 13 percent for each of the successive years. Talking to Daily Times, chairman Pakistan Tanners Association (PTA) appreciated the government's initiative for launching comprehensive leather and leather products export plan in consultation with the major players of the leather sector. He said it was a good omen that the government would share 25 percent financial cost of setting up laboratories in the individual tanneries.
Saddain also hailed the government's help in setting up effluent plants in various tannery sites in the country. Under the trade policy, the leather sector will be able to avail the facilities from the Export Investment Support Fund (EISF). It will provide matching grant for setting up effluent treatment plants in individual tanneries.
He said the scheme being launched to compensate inland freight cost to exporters leather garments including cement, light engineering, furniture, soda ash, hydrogen peroxide, sanitary wares, tiles, finished marble and granite and onyx products would provide some relief to these sectors.
He said matching grant to establish design studios or design centres in the factories would benefit the leather sector.
He said facilities from the EISF for leather apparel industry would prove supportive to the sector. The EISF may be used for providing matching grants to district governments for installing flaying machines. However, he expressed his reservation for not providing a level-playing field to the leather sector and announcement of any relief package to the second export sector of the country with $1.25 billion.
Finished leather is one of the major export products and an intermediate product in which substantial value-addition can be achieved by adopting modern production processes and creating trendy finishes. 
Former chairman Surgical Instrument Manufacturers Association of Pakistan (SIMAP), Aamir Riaz Bhinder said the government's plan to decide that surgical instruments' sector would be granted 25 percent support on brand development activities would greatly help to keep the brands intact. He said foreign surgical manufacturers largely use the brands of Pakistan that was resulting in lower prices for country's manufacturers in these sectors. 
Shortage of skilled manpower is impeding the growth of surgical instruments manufacturing industry. 
The decision to establish a centre of excellence for catering to the training, designing, research and development needs of surgical instruments' sector at Sialkot will help the sector, he added.
The Ministry of Commerce proposes to set up an Enterprise and Entrepreneur Fund (EEF) for incentivising the improvements in firm management capabilities in 10 sectors chosen to push Pakistan higher on the sophistication ladder.


----------



## Omar1984

*Karachi stocks witness selling pressure, index sheds 72 points ​*
KARACHI: The Karachi stock market witnessed selling pressure on the first trading day of the week Monday on delay in monetary policy review by SBP to August 15, without giving any reason for such delay.

The Karachi Stock Exchange (KSE) 100-share index 72.34 points or 0.93 percent to close at 7,711.06 points as compared to 7,783.40 points of the previous session. The KSE 30-share index closed at 8,268.70 points with loss of 95.78 points. The KMI 30 index closed at 11,603.34 points with a decline of 58.83 points. 

Analysts said that investors remained concerned as uncertainty loomed over discount rate cut as investment cost is expected to rise after the delay in monetary policy announcement.

The market turnover went down by 37.00 percent and traded 121.61 million shares as compared to previous session&#8217;s 193.04 million shares. The overall market capitalisation was up by 0.82 percent to close at Rs 2.75 trillion as compared with Rs 2.29 trillion. Out of total 406 companies, 165 closed in the positive zone, 217 in negative, while 24 remained unchanged. 

Confusion pertaining to delay in monetary policy led to a stagnant opening, while declining local currency pushed the 100-share index into the red territory, said analyst at Aziz Fida Husein and Co Hasnain Asghar Ali. &#8220;Activity was witnessed on dips, as it is a popular view that delay has been done in order to provide relief to the economy by declining the interest rate substantially.&#8221; The element of surprise kept the fund mangers cautious and the introduction of deliverable forward kept the interest of the market participants alive allowing turnover to keep ticking, he added. 

The upcoming corporate announcements and announcement of trade policy (likely to be ambitious, as the policy is likely to cater to a $25 billion export) continued to invite buying interest in the stocks likely to shine in the post event sessions, he said adding that increasing trend in the cash rich oil and gas exploration stocks, having a decent dividend history invited decent quantum buyers on dips while government&#8217;s effort to address circular debt issue kept the buyers active in the cash starved stocks as well offering various options to the seasoned market participants. 

&#8220;Expectation of favourable trade policy announcements and improved valuations for cement, oil and textile sectors failed to change the negative market sentiment in the result announcement session,&#8221; said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.

The KSE 100 index opened in the green zone with a gain of 20.07 points and at the end of the day closed at 7,711.06 points with a loss of 72.34 points. 

TRG Pakistan Ltd was the volume leader in the share market with 12.06 million shares as it closed at Rs 1.80 after opening at Rs 1.57 making a financial gain of 23 paisas. Maple Leaf traded 9.42 million shares as it closed at Rs 6.31 as against its opening at Rs 6.05 gaining 26 paisas. DGK Cement traded 7.81 million shares as it closed at Rs 37.31 105.34 from its opening at Rs 38.28 gaining 97 paisas. Pak Reinsurance traded 6.37 million shares as it closed at Rs 40.02 as compared to its opening at Rs 40.06 shedding 4 paisas. staff report


----------



## Omar1984

*Highlights of Trade Policy 2009-12 ​*
ISLAMABAD (APP) - Following are the hilights of Trade Policy 2009-12 announced by Federal Minister for Commerce Makhdoom Amin Fahim on Monday.
Trade Policy 2009-12 aims to set the country on the path of sustainable high economic growth through exports.
The fundamental principles of the Strategic Trade Policy Framework are rooted in the manifesto of Pakistan Peoples Party. 
As guided by the Prime Minister and his cabinet, the policy is geared towards contributing towards poverty alleviation, achieving export led growth and providing relief to the common man through the provision of jobs and services, will focus strongly on development and facilitation. 
The policy is set in a three years Strategic Trade Policy Framework (STPF) for the next 3 years. This will be a medium term road-map in order to ensure certainty of policies which in turn will act as a catalyst in the revival of domestic commerce and international trade in Pakistan, with the precise objective of bringing about a structural transformation in Pakistans exports. 
 As far as the enhancement of the export competitiveness is concerned, the government aims to: First, overcome the most pressing supply-side constraints such as the shortage of energy, cost of capital and difficulties linked with adverse travel advisories.
Second, enhance competitiveness of textile and clothing, with the help of Textile Policy due to be announced shortly which focuses on new investments, modernization of machinery and increasing total factor productivity. Third, deepen and diversify export markets particularly our major trading partners US and EU as well as countries with which Pakistan has signed a free trade agreement such as China, Malaysia and Sri Lanka. Fourth, promote trade in services which globally have a more stable demand pattern and are less prone to detrimental external shocks seen for the case of commodity trading.
Fifth, embark on domestic commerce reform and development where key areas such as wholesale and retail trade, storage and warehousing, transport, regulatory environment, promotion of modern business and taxation practices require immediate attention. 
The government aims to integrate the local productive capacity with globally integrated supply chain.
Coordinate and leverage the skill up-gradation programmes in the priority sectors and strengthen the institutions entrusted with the skilling. In this regards, skilling of women workers would be given special importance. Acquire and upgrade technology level so that Pakistan can move away from the traditional and low value export products.
Promote enterprise and entrepreneurship development.
The Ministry of Commerce proposes to set up an Enterprise and Entrepreneur Fund [EEF] for incentivising the improvements in firm management capabilities in ten sectors chosen to push Pakistan higher on the sophistication ladder.
Rationalize the tariff policy keeping in view the structure of value addition in various industries.
In order to address our strategic objective of product diversification for Pakistans exports the government aims to: Provide a clear policy framework on the development of chemical sector. Continue the successful initiatives provided to the Pharmaceuticals sector in the previous trade policy and help introduce necessary regulatory and initiate new development programmes. Address the supply side constraints in the meat and meat products industry Facilitate the foreign direct investment and export potential of mineral sector.
Promote agro-processed exports Support the light engineering sectors to export more in high paying markets.
The trade policy aims to create a special fund of Rs 2.5 billion for product development and marketing in order to increase the sophistication level of the sector and realize true potential of this sector.
Devise a medium term strategy to boost exports of gems and jewellery.
Devise a comprehensive long term strategy for significantly improving Pakistans export of services.
Provide incentives to facilitate technology acquisition, adoption, replacement with the twin objectives of energy efficiency and environmental protection.
To launch a comprehensive Leather and leather products export Plan in consultation with the major players of leather sector.
To launch a comprehensive plan for the promotion of export of Services.
In order to address our strategic objective of pursuing greater market access through extensive trade diplomacy the government aims to: 
Actively participate in the Doha Development Agenda negotiations in order to maximize the gains from trade diplomacy.
Making free trade agreements a success in terms of increase in bilateral and regional export volumes with favourable terms of trade for Pakistan.
Engage with the larger trading partners like US and EU for greater market access and utilize the Reconstruction Opportunity Zones for providing zero duty facility for exports to US.
Strengthen and utilize the trade officers better for the protection and promotion of Pakistans commercial interest abroad. Ladies and gentlemen, 
In order to address our objective of institutional reform for prudent implementation of Strategic Trade Policy Framework the Ministry of commerce would take the following measures: 
Employ the modern logical frameworks to implement and evaluate different interventions and initiatives of the Strategic Trade Policy Framework and establish 3 Implementation Management Units.
Set up an Export Investment Support Fund to channelise the public investments to the selected sectors with clear objective of effecting the structural transformation.

Reactions: Like Like:
1


----------



## Spring Onion

*Exporters of 14 major sectors to be provided interim relief *

SOHAIL SARFRAZ 

ISLAMBAD (July 28 2009): The government has decided to provide some kind of interim relief to the exporters of 14 major sectors, which would be linked with their productivity targets and efficiency standards of these sectors. According to the 2009-10 Trade Policy announced on Monday, the determination of additional duty drawback to specified sectors may take some more time.

It has been decided to give an interim relief to the sectors of tents and canvas, electric machinery, carpets, rugs and mats, sports goods, footwear, surgical/medical/veterinary/ beauty care instruments, cutlery, onyx products, electric fans, furniture, auto parts, handicrafts, jewellery and pharmaceuticals. All incentives will be linked to the outcomes, efficiency standards and wherever possible, productivity targets. The government has zero-rated all kinds of exports to provide incentives to the manufactures-cum-exporters under the new trade policy.

The zero rating of exports is a very old demand of the industry. Despite many promises by the governments, the exporters have not been getting this facility as enjoyed by their international competitors. The government has now decided to make the exports completely zero-rated.

Under the new trade policy, rationalisation of tariff would be done on the principle of cascading to provide the exporting industry with an environment, which supports manufacturing rather than trading. The new policy would also rationalise the tariff policy keeping in view the structure of value-addition in various industries.

When contacted, tax experts said that there was no such tax on exports, which were already zero-rated. There might be possibility of allowing 100 percent duties and taxes-free inputs/raw materials consumed in the finished products being exported or some other type of additional incentives to the said export sectors, they added.


Copyright Business Recorder, 2009

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## Spring Onion

*Rs 11 billion more to be paid on account of PDC: Rs 66.456 billion paid to OMCs in 2008-09 *

ZAFAR BHUTTA 

ISLAMABAD (July 28 2009): The government had released Rs 66.456 billion on account of price differential claims (PDC) on petroleum products to oil marketing companies (OMCs) during last financial year (2008-09). This amount was paid to OMCs on the provision of subsidy to consumers of petroleum products in line with global high oil prices. The government released over Rs 40 billion PDC to Pakistan State Oil (PSO) during the year.

It released Rs 15 billion to PSO in August 2008 and Rs 25 billion in September 2008. The government released Rs 15 billion to Shell in October 2008 and Rs 1 billion to Caltex in January 2008. Rs 500 million was released to small OMCs in January. The government cleared Rs 7.054 billion PDC in November 2008 and Rs 2.9 billion in February 2009.

Recently, it released Rs 3 billion PDC to PSO, and Rs 11 billion in terms of PDC is still to be paid to OMCs. The government has been giving subsidy on petroleum products to facilitate the consumers since October 15, 2008 due to higher oil prices in the international market. The subsidy was automatically abolished on October 15, 2008 in line with reduction in global oil prices and the government is still to pay Rs 11 billion pending PDC to OMCs.

The government has so far paid Rs 279 billion PDC to OMCs and Rs 11 billion PDC is still to be paid. The huge volume of subsidy had resulted in budget deficit. Due to such huge volume of PDC, the country has undergone oil shortage several times as OMCs had been claiming that they were not able to place orders of oil import due to financial crunch followed by non-payment of PDC.

After decline in oil prices, the government has also collected petroleum development levy (PDL) on petroleum products and the volume of PDC stood at Rs 98 billion on May 15, 2009.

The government had committed to World Bank to collect at least Rs 30 billion PDL on petroleum products in first three months of 2009 (Jan-March). It collected Rs 44.067 billion during the period under review against Rs 49.5 billion PDL projection. It had targeted Rs 14 billion PDL collection in the budget for 2008-09 but due to reduction in global oil prices, it collected surplus PDL on petroleum products.

After getting loan under the standby arrangement from International Monetary Fund (IMF) in November 2008, the government has not passed on the full impact of reduced oil prices to consumers to fulfil the commitment with IMF regarding revenue collection. PDL is a non-tax receipt, but the government has collected PDL to meet the revenue collection target set by IMF in financial year 2008-09.


Copyright Business Recorder, 2009


----------



## Spring Onion

*News analysis: Rational approach? *

BUSINESS RECORDER RESEARCH 

ARTICLE (July 28 2009): The commerce minister's speech on trade policy, perhaps, did not show a retaional approach and his optimism, it appeared, was not well founded in reality. Consider: First: the export growth targets - especially those set for successive years seem unlikely, given soaring costs of production, lack of technological advancement, absence of diversified markets amid a serious lack of FDI in the non-oil commodity sector and slowing global economy.

Second: How can the industries be given electricity credits and guaranteed power supply, as the minister proposed, when there is serious power shortage in the country with an infrastructure, showing no improvement?

Third: The ministry has decided to create a fund to hedge against "mark-up rate hikes" to protect businesses from borrowing costs. The fund would be created after the ministry works it out with the Ministry of Finance and State Bank of Pakistan. Their most likely answer would be "what's the point; interest rates are going down anyway, though gradually, besides it will also increase the cost of hedging, since the interest cycle is reversing".

Fourth: The much hyped insurance cover policy seems off as well. While it is unlikely to woo foreigners given current state of heightened security tensions in the country in the first place, it will also increase government expenditure by much more than they imagine as life cover against terrorism even for a single person often runs in millions of dollars.

Fifth: The policy allows oil and gas exploring firms to import drilling rigs with a maximum of age of 20 years on the premise that drilling rigs usually have a useful life of around 20 years. The question arises here, that how can the law keep a hole to allow the import of something whose useful life has already expired. If the allowed age would have been 10 years, it makes greater sense.


Copyright Business Recorder, 2009


----------



## Spring Onion

*Trade policy seeks to effect 'strategic change' in export sector, sets $18.86 billion target for fiscal year 2010 *
MUSHTAQ GHUMMAN 
ISLAMABAD (July 28 2009): The government on Monday announced a number of incentives for the struggling local industry, exporters and importers under the medium-term roadmap 'Strategic Trade Policy Framework' (STPF) envisaging 29 percent growth in exports-6 percent in 2009-10, 10 percent in 2010-11, and 13 percent in 2011-12.

This means that export target for 2009-10 has been fixed at $18.86 billion, followed by $20.68 billion in 2010-11, and $23.5 billion in 2011-12. Establishment of hedge fund to suck up any revision in interest rate, Export Investment Support Fund, insurance of foreign buyers/importers, credit availability for industry and contracts with a power companies for supply of power at mutually agreed times are the main measures which have been made part of the STPF.

The insurance scheme will be funded from Export Investment Support Fund and managed by National Insurance Corporation Limited (NICL). A special fund of Rs 2.5 billion to support light engineering sector has been established for product development and marketing.

Industrial importers have been allowed to import new, refurbished and upgraded machinery on the basis of trade-in with their old, obsolete machinery. Likewise, export of their old and obsolete machinery for trade-in with new, refurbished or upgraded machinery would also be allowed.

The State Bank of Pakistan had discontinued the facility to remit $10,000 per invoice, as advance payment, for import of spare parts, consumables and raw materials. The discontinuation of the facility had increased the cost and time to effect urgent imports. It has been decided that the facility to remit $10,000 per invoice, as advance payment, for import of spare parts, consumables and raw materials would be restored by the State Bank of Pakistan.

Unveiling STPF on television and radio network, Commerce Minister Amin Fahim expressed hope that with the introduction of a few intermediate indicators by 2012 the competitiveness ranking of Pakistan would improve from 101 to 75; the share of engineering exports would increased from 1.5 percent to 5 percent; value-addition of cotton woulf increase from $1000 to $1500 per bale; and regional trade would expand from 17 percent to 25 percent.

"Creation of fund to hedge mark-up rate hikes so that finances can be provided to the businessmen at fixed interest rates for a short to medium term, Commerce Ministry will work with the Finance Ministry and State Bank of Pakistan (SBP) for this purpose," said Faihm in his speech.

He said that to ensure predictability of electricity supply it has been decided that the Ministry of Water and Power would work with the discos to enter into agreements with the clusters of industries whereby electricity is supplied at mutually agreed times. The agreements would have punitive and compensation clauses and the compensation could be in the form of electricity charges credit.

The government has also decided to make the exports completely zero-rated. As determining and providing additional duty drawbacks to specified sectors may take some more time, it has been decided to give interim relief to the sectors of tents & canvas, electric machinery, carpets, rugs and mats, sports goods, footwear, surgical/medical/veterinary/beauty care instruments, cutlery, onyx products, electric fans, furniture, auto parts, handicrafts, jewellery and pharmaceuticals. All incentives will be linked to the outcomes, efficiency standards and, wherever possible, productivity targets,"

Oil and gas and petroleum sector companies are allowed import of second-hand plant and machinery equipment required for their project in Pakistan subject to pre-shipment certification to the effect that such plant, machinery and equipment are in good working condition and are not older than 10 years. Since drilling rigs usually have a useful life of around 20 years, it has been decided that the age limit for them may be enhanced to 20 years subject to pre-shipment inspection certification.

For diversification of exports mix, customs duty will be zero rated on import of manmade fibres, other than polyester staple fibre, whereas customs duty on import of sizing chemicals will be withdrawn.

According to the STPF, there are various restrictions on import of specialised machinery and transport equipment eg Concrete Transit Lorries, Concrete Pumps, Crane Lorries, Concrete Placing Trucks, Dump Trucks, Waste Disposal Trucks, cement bulkers and Prime Movers. These conditions include age restrictions and actual use. It has been decided to allow import of specialised machinery and transport equipment by actual users in used condition, provided they fulfil emission standards and have sufficient productive life, irrespective of the age.

"We have to bear in mind that this trade policy comes in the backdrop of a number of challenges ie infrastructure deficit, particularly in energy, poor innovation and technological infrastructure, low labour productivity, low levels of manufacturing value-addition, little foreign direct investment in manufacturing and exportable sectors, anti-export bias in taxation, increasing costs of exports as compared to import and lack of product and geographical diversification in exports," he said.

Ministry of Commerce has proposed to set up an Enterprise and Entrepreneur Fund [EEF] for incentivising the improvements in firm management capabilities in ten sectors chosen to push Pakistan higher on the sophistication ladder.

Rationalisation of tariff policy, keeping in view the structure of value-addition in various industries, clear policy on chemical sectors are also part the STPF.

-Devise a medium term strategy to boost exports of gems and jewellery, a comprehensive long term strategy for significantly improving Pakistan's export of services, provide incentives to facilitate technology acquisition, adoption, replacement with the twin objectives of energy efficiency and environmental protection, to launch a comprehensive leather and leather products export plan in consultation with the major players of leather sector, export of services are also made part of the strategy.

-Engage with the larger trading partners like US and EU for greater market access and utilise the Reconstruction Opportunity Zones for providing zero duty facility for exports to US.

-Strengthen and utilise the trade officers better for the protection and promotion of Pakistan's commercial interest abroad. Enhancing export competitiveness of Pakistan would largely depend upon the quality of governance and management structures deployed to implement it. In order to address the objective of institutional reform for prudent implementation of Strategic Trade Policy Framework, the Ministry of Commerce would take the following measures:

The Ministry would employ modern logical frameworks to implement and evaluate different interventions and initiatives of the Strategic Trade Policy Framework and would establish three Implementation Management Units.

Commerce Ministry would ensure significant improvements in its own working as well as in the working of Transport and Trade Facilitation Project, Trade Development Authority of Pakistan, National Tariff Commission, Pakistan Institute of Trade and Development, Pakistan Horticulture and Export Development Board, Directorate General of Trade Organisations, Trade Offices abroad and other relevant organisations. Commerce Ministry would also establish efficient steering and coordination mechanisms that would make the functional linkages between the Structural Trade Policy Framework with the Planning process in Pakistan and relevant line and sectoral ministries.

As far as the monitoring and evaluation of the STPF is concerned, Commerce Minister announced that the Pakistan Institute of Trade and Development, Islamabad, an independent policy think-tank of the Ministry of Commerce, would undertake a systematic evaluation of the impact of Trade Policy 2009-12 on the trade performance of Pakistan with a view to enhance the effectiveness of different trade policy interventions, suggest course corrections and lay the scientific foundations for the preparatory work for the next Trade Policy.

Commerce Ministry will also introduce many sector-specific initiatives to promote product diversification, which are as follows: extra cost on inland transportation erodes export competitiveness of a range of developmental products. It has been decided that a scheme may be launched to compensate inland freight cost to exporters of cement, light engineering, leather garments, furniture, soda ash, hydrogen peroxide, sanitary wares including tiles, finished marble/granite/onyx products.

All final use products do require continuous research and development for enhancing competitiveness either by technology up gradation, skill development, or by improved management systems. A fund, dedicated to support these activities, named Technology, Skill and Management Up-gradation Fund of Rs 3 billion, is being established.

The manufacturing in surgical instruments, sports goods and cutlery sectors is largely done under the brands of foreign companies, and that results in lower prices for manufacturers in these sectors. It has been decided that surgical instruments, sports goods & cutlery sectors would be granted 25 percent support on brand development activities.

Shortage of well-trained skilled manpower is impeding growth of surgical instruments manufacturing industry. It has been decided to establish a centre of excellence for catering to the training, designing, research & development needs of surgical instruments sector in Sialkot.

The engineering sector in Pakistan is very dynamic, but it is fragmented. This sector has shown promising growth during 2008-09 with an export growth of 32 percent. In order to increase the sophistication level and realise true potential of this sector, a special Fund, of Rs 2.5 billion, is being created for product development & marketing for light engineering sector.

To support leather apparel industry, it has been decided to procure expert advisory services to leather apparel manufacturers-cum-exporters. Matching grant will be given to establish design studios or design centres in the factories, besides establishment of Research &Development Centres in Karachi and Sialkot by Pakistan Leather Garments Manufacturers and Exporters Associations for providing Research & Development support to Leather Garments & Leather Goods Exporters.

The government has also decided to share 25 percent financial cost of setting up labs in the individual tanneries and provide matching grant for setting up of effluent treatment plants in individual tanneries. The amount will be provided from the Export Investment Support Fund.

It is estimated that a minimum of 25 percent hides and skins are rendered useless from butcher cuts. There is an imminent need to introduce flaying machines in slaughterhouses, but local governments have limited resources to install and run flaying machines. It has been, therefore, decided that Export Investment Support Fund may be used for providing matching grants to district governments for installing flaying machines.

The Commerce Minister further said that the government recognises the importance of the textile and clothing sectors. To provide a foundation for sustainable growth, various initiatives are being planned through a separate and first ever Textiles Policy, to be announced shortly. The major thrust of the Textiles Policy will be to enhance domestic capabilities and capacities for efficient use of resources through skills development, technology up gradation and provision of infrastructural facilities. Measures are also envisaged for diversification of fibre use and mix. The Textile Policy will take a holistic approach and will contain short-term and long-term measures to support the textiles and clothing manufacturers overcome the current problems created by the global downturn and equip them with necessary ingredients to meet the growing competitiveness challenges of the future.

The STPF would leverage the Textile Policy through its diverse measures and policies directly and indirectly. The Ministry of Commerce would lend support to the Ministry of Textiles towards efficient implementation of Textile Policy. In this regards, the following Initiatives would be given high priority by Strategic Trade Policy Framework among many others initiatives which Ministry of Commerce hopes to develop and implement with the help of Ministry of Textiles and other stakeholders:

-Brand Development Program, to encourage the establishment of domestic and international brands, rationalisation of tariff on the principle of cascading to provide the exporting industry with an environment which supports manufacturing rather than trading initiatives for greater market access, developing and enlarging acceptability of Pakistani textiles and clothing in niche markets and diversification of exports to new destinations and initiatives to promote more effective holding of local and participation and foreign exhibitions are some of the key measures announced in the STPF.

The Commerce Minister also announced that it has been decided to grant 25 percent freight subsidy if live seafood products are exported by air. This will also compensate exporters to overcome losses incurred due to mortality.

It has also been decided to support processed food exports initially by reimbursing Research &Development (R&D) costs @ 6 percent of the exports. The quantum and mode of support for 2009-12 would be decided after a detailed study but not later than May 2010.

Services Export Development Fund is also being set up to provide assistance in the form of reimbursable grants, to Pakistan service exporters for Tendering or negotiating for international projects and for conducting pre-feasibility or feasibility studies for international projects.

Halal Certification Board is being set up for which the government would support the cost of certification by 50 percent. In the coming year, the Ministry will develop a comprehensive policy for the promotion of Halal products.

The government will bear 50 percent cost of Underwriters Laboratories (UL) aimed at safety standards certification by increase in the level of acceptability of manufactured products particularly domestic electrical appliances in international markets.

"Our government is aware that there is an urgent need to reduce the cost of doing business in Pakistan. We are addressing this in a systematic way under our Strategic Trade Policy Framework 2009-12. To demonstrate our resolve to reduce the cost of doing business in Pakistan significantly, we are introducing a few specific measures right away. These Measures are as follows:"

-Oil and gas and petroleum sector companies are allowed import of second-hand plant and machinery equipment required for their project in Pakistan, subject to pre-shipment certification to the effect that such plant, machinery and equipment are in good working condition and are not older than 10 years. Since drilling rigs usually have a useful life of around 20 years it has been decided that the age limit for them may be enhanced to 20 years subject to Pre Shipment Inspection certification.

There are various restrictions on import of specialised machinery and transport equipment eg Concrete Transit Lorries, Concrete Pumps, Crane Lorries, Concrete Placing Trucks, Dump Trucks, Waste Disposal Trucks, cement bulkers and Prime Movers. These conditions include age restrictions and actual use. It has been decided to allow the import of specialised machinery and transport equipment by actual users in used condition, provided they fulfil emission standards and have sufficient productive life irrespective of the age.

There is a possibility for Industrial Users to trade-in new, refurbished or up-graded machinery with their obsolete machinery. Current import and export regimes do not provide for trade-ins whereas if allowed it could reduce the expenditure on Balancing Modernisation and Reform (BMR). It has been decided to allow Industrial importers to import new, refurbished and upgraded machinery on the basis of trade-in with their old, obsolete machinery. Likewise, export of their old and obsolete machinery for trade in with new, refurbished or upgraded machinery would also be allowed.

State Bank of Pakistan has discontinued the facility to remit $10,000 per invoice, as advance payment, for import of spare parts, consumables and raw materials. The discontinuation of the facility has increased the cost and time to effect urgent imports. It has been decided that the facility to remit $10,000 per invoice, as advance payment, for import of spare parts, consumables and raw materials would be restored by State Bank of Pakistan.

"Ladies and gentlemen, marketing of pharmaceutical products involves a number of complexities in the international market, including the need for extensive sampling at product launching stage. It has, therefore, been decided that limit for physicians' samples may be enhanced to 20 percent from the current limit 10 percent at the time of launch with first shipment.

"Currently, units that export 100 percent of their production enjoy the status of Export-Oriented Units and the benefits thereof. Since, engineering industry, particularly auto motive parts manufacturing industry, has vast export potential but cannot export all of its production in initial stages, it needs special treatment. It has been decided that engineering units would be allowed Export Oriented Units facility on export of 50 percent of their production for the first three years. After that, the engineering units would be allowed this facility on export of 80 percent of their production.

"The government will support for opening exporters offices and retail sales outlets abroad whereas warehousing scheme would be continued and its scope would be expanded to include traditional markets and traditional products.

"The government is supporting various quality, environmental and social certifications. The scope of this Scheme would be expanded by Trade Development Authority of Pakistan in consultation with the Industry."

According to the Commerce Minister, on the import side, several regulatory issues require immediate attention.

The government has announced the following new measures: at present old and used computers and parts thereof are freely importable but the import of used components is banned, depriving the low income groups of computer use. In order to encourage use of computers by low income groups, it has been decided to allow the import of old and used computer components.

Second-hand cathode ray tubes monitors are being imported and used as televisions, thereby posing a threat to local television industry; excessive import of first world's e-waste is also a threat to the environment. It has therefore been decided to disallow the import of Cathode Ray Tubes monitors unless imported along with used computers.

The local manufacturing of vaccines is of strategic importance and many local companies have started venturing into this high-tech segment. To encourage local manufacturing, import of vaccines would be restricted only from World Health Organisation-approved plants.

At present, only such used ambulances, that are donated by "reputable organisations", are allowed for import by charitable organisations. It has been decided that import of used ambulances that fulfil certifiable standards and have minimum 10 years of useful life would be allowed when donated by any organisation or individual to charitable or nonprofit organisation, trusts or hospitals.

Disabled persons are allowed waiver of import duty, which is in excess of 10 percent on Completely Knocked Down [CKD] kits that are imported for assembling of car for them. Restricting disabled persons to use locally assembled cars limits the choice to only a few makes. There have been persistent complaints of non-availability of customised vehicles in the local makes. Some time ago, the duty-free import of customised cars by disabled persons was allowed. To facilitate disabled persons to actively participate in economic activities, the facility to import duty-free customised cars, not above 1350 cc of engine capacity is being allowed. To facilitate disabled persons further, it has been decided to allow the import of one used duty-free motorised wheelchair to actual users.

In case a passenger who brings or imports vehicle under Transfer of Residence scheme dies before the issuance of Transfer of Residence, there is no provision in Import Policy Order for release of such a vehicle. It has been decided that the vehicle imported by an overseas Pakistani, under Transfer of Residence rules, may be released to legal heir in case of his or her death.


Copyright Business Recorder, 2009

Reactions: Like Like:
1


----------



## Hyde

*Exports can become engine of growth: Fahim​*
ISLAMABAD: The government has formally announced its new National Trade Policy for next three years setting up an exports target of $18.86 billion for current financial year, ARY NEWS reports Monday.

The Federal Minister for Commerce, Makhdoom Amin Fahim announced the new policy delivering speech today broadcasted by the state and private TV channels as well.

The Federal Cabinet has approved the policy for 2009-12 aiming at boosting current exports of the country by 29 percent during the period.

The cabinet met here Monday with Prime Minister Syed Yousuf Raza Gilani in chair and mulled over the various aspects of the new policy presented before the meeting by Makhdoom Amin Fahim.

"There is a consensus among all the stakeholders in Pakistan's international trade that the country's exports can become an engine of growth and prosperity, if both public and private sector implement a holistic strategy to enhance competitiveness of exports," the minister said.

The federal government expects exports to grow by 10% in the next financial year and 13% the year after that.

Our aim is to bring forth a positive strategic change in the export sector. We also wish to expand our support and encouragement to the private sector and ensure the availability of enabling infrastructure.

The issues created due the problems which we inherited such as energy crises, business closures, declining long term foreign investment have been worsened by the war on terror in which Pakistan is a frontline state, he mentioned.

The direct and indirect costs of this war do not only include the loss of life, property and business assets, but also the deterioration of countrys image as a result of which the business to business interaction becomes more difficult, the minister said in his speech.

Besides, he said However after a critical phase of weak domestic macroeconomic situation, Pakistan economy is now undergoing a recovery phase.

The year 2008-09 witnessed unprecedented economic downturn. Consumption decreased in the developed world and the global trade shrank by 9%, Amin Fahim pronounced the Traded Policy document.

Global recession adversely affected exporting countries and Pakistan is no exception to it. Exports from Pakistan declined to US$ 17.8 billion as compared to previous years exports of US$ 19.1 billion, it said.

Imports also witnessed a relative decline and fell by 13% as Pakistans imports during 2008-09 stood at US $ 34.9 billion as compared to US $ 40.4 billion in 2007-08.

During 2008-9, the export of Textiles, which account for around 54% of Pakistans total exports, dropped from US$ 10.6 billion to US$ 9.6 billion. The major losers in this regard were Readymade Garments, which dropped by 21.7%, Cotton Yarn, which dropped by 15%, Bed linen, which dropped by 10.2%, Art Silk & Synthetic Textiles, which dropped by 22.1% and Cotton Fabric by 4.0%.

The exports of finished leather and leather manufacturers dropped from US$ 1.1 billion to US$ 0.8 billion registering a drop 24.5%. The Rice exports have registered an impressive growth from US$ 1.84 billion to US$ 1.99 with an increase of 8.2%.

Engineering goods also registered an increase of 26.1% from US$ 211.3 to US$ 266.4 million. In this regard, the major contributors have been the specialized machinery, transport equipment, electric fans etc.

The export of Jewelry also rose from US$ 213.4 million to US$ 288.4 million, registering an increase of 35%.

During the last few decades, the global trade has undergone a major structural change as far as the product composition and geography of trade is concerned.

There has been an explosion of non textile manufactured exports at the global level. Whereas, the share of non-textile manufactured in Pakistans exports has gone down from an already low figure of US $ 5.83 billion (25.08%) in 2007-08 to US $ 3.12 billion in 2008-09 (17.32 %).

The fundamental principles of the Strategic Trade Policy Framework are the Growth with Equity, Greater Opportunities for gainful employment, Sound macro-economic framework for trade environment, Concern with poverty eradication and environmental protection, Investing in Human resources, Targeting Poverty alleviation, Promoting private sector as engine of growth, Focus on small scale sector particularly in agriculture.

Reactions: Like Like:
1


----------



## Omar1984

*Air travelling down by 15-30 percent despite peak season ​*
By Muhammad Yasir 

KARACHI: The seat occupancy of the domestic and international flights of both national and international airlines witnessed a fall of 15 to 30 percent despite the peak season of air travelling in the country. 

People in the aviation industry told Daily Times that the travelling season-May to August-records high seat occupancy and this year the fares have been reduced owing to the global and domestic economic scenario. 

The number of passenger from the Gulf countries declined, as foreign companies laid off a large number of Pakistanis employees in the preceding year. The travelling of business class passengers to and from Gulf nations has also taken a blow because of the gloomy economic situation the world over. 

Managing Director Airblue, Nasir Ali Khan, said the seat reservation has declined by 15 to 20 percent from the Gulf nations on the prevailing economic scenario. 

He also attributed the job-cuts and lack of business opportunities to the low air travelling of Pakistanis from Gulf countries, adding the eroding purchasing power and uncertain economic situation have kept away a significant number of regular passengers at bay. 

For the last two years, the traffic between Pakistan and Gulf countries was on the rise. Pakistan International Airlines and Airblue have added a number of new routes and increased flight frequency on busy routes such as Dubai, Muscat, Abu Dhabi and Kuwait. Besides these, other airlines like Emirates, Ettihad and Qatar Airways also cater to the needs of passengers of this region. 

The airlines also offered multiple fares package to increase the occupancy ratio but all attempts to lure in the passengers proved to be futile. The normal domestic fares for domestic airlines are between Rs 7,000 to Rs 9000 by the national airlines, whereas flights to Gulf countries are charged between Rs 25,000 to Rs 30,000. 

Chairman Standing Committee on Aviation, Federation of Chamber of Commerce and Industry, Yahya Polani, said that domestic flights have seen a drop of more than 30 percent across the country. 

"The air traffic within the country, mostly towards tourists spots in the northern areas, has almost halted on the law and order situation," Polani said.

He added that country has more than four other cities in the northern part that remained unaffected from any sort of terrorism, which the concerned ministry and tourist boards should have conveyed to the tourists.


----------



## Omar1984

*Rupee at one-year low amid oil payments pressure ​*
By Mushfiq Ahmad 

KARACHI: Rupee fell to a one-year low against dollar in the interbank market on Tuesday mainly because of demand for greenback by oil importers, said bankers. 

Dollar closed around Rs 83.20 after touching Rs 83.45 during the day. The closing level was higher by 60 paisas from Monday's closing level of Rs 82.60. Rupee is now near its all-time low of Rs 84 in the interbank market. 

"There was pressure in the market due to some oil payments," said a treasury official at a large local bank. "There was already pressure on rupee because of transfer of responsibility for making payments against POL products imports from August 1." 

The banker said inflows were slow and outflows were large, which caused rupee to lose value. He said the State Bank of Pakistan intervened in the second half of the trading session to support the rupee. It was because of this that dollar retreated afterwards, he said. 

State Bank of Pakistan has said that banks would have to arrange dollars for payments of POL products from August 1. After that SBP will provide dollars to commercial banks only for crude oil imports. 

SBP had taken up the responsibility of arranging dollars for oil import payments back in 2004 when rising oil prices had started to weaken the domestic currency. Dollar had shot up from Rs 57 to Rs 60 in a matter of a few weeks, which had forced the SBP, then headed by Dr Ishrat Hussain, to adopt this mechanism. Now the central bank has had to do away with this system because of insistence of International Monetary Fund, which wants all payments to be made by the market. The SBP had managed to keep dollar at Rs 60 for over three years by assuming responsibility for oil payments. 

Dollar started gaining value once again from the beginning of 2008 owing to extraordinarily large trade and current account deficits and reached Rs 83 in October 2008. This combined with balance of payments difficulties and sharp depletion in foreign exchange reserves to force the PPP government to ask IMF for a loan. After the government got a $7.6 billion loan, rupee started recovering and traded at Rs 78 for sometime.


----------



## Omar1984

*ECC informed of wheat stock, forex reserves ​*
ISLAMABAD: The ECC was informed that the stock of wheat as on July 15, 2009 amounted to 9.810 million tonnes against 3.764 million tones in the same period last year, thereby showing a higher stock of about 6.046 million tonnes.

The country's foreign exchange reserves have witnessed an increase of $5.30 billion during November 2008 to July 24 2009. 

Economic Coordination Committee (ECC) met with Syed Naveed Qamar in the chair on Tuesday was informed that foreign exchange reserves stood at $11.7 billion as on July 24, 2009 - up from $.6.4 billion on November 2008. This reflects impact of disbursement of the $3.1 billion from IMF in November and fresh disbursement of second tranche of $849.9 billion plus $500 million disbursement of Poverty Reduction concession loan from the World Bank. 

It was also noticed that the trade deficit improved by 18.52 percent to $ 17.04 billion in July-June 2009 from $20.91 billion in the same period last year. Similarly, overseas Pakistani workers' remittances amounted to $7,811.4 million in July-June 2009-09 as against $6451.2 million, showing an increase of 21.1 percent over the same period last year.

The ECC was also informed that the overall CPI-based inflation registered an increase of 0.99 percent in June 2009 over May 2009. staff report


----------



## Omar1984

*Hosiery exports suffer from power outages, bad law & order ​*
By Tanveer Ahmed

KARACHI: The size of export orders for hosiery products shrank substantially in recent months because of inability of local export sector to make timely shipments owing to the power crisis and law and order situation.

&#8220;A foreign buyer, who used to place export order of 200,000 garments items is now asking for just 10,000 to 15,000,&#8221; Shehzad Azam, Chairman Pakistan Knitwear Exporters Association told Daily Times. He noted that the demand of the local hosiery products did not suffered much from the global financial crisis and this reduction in export orders is solely due to domestic structural issues and law and order situation.

It was the local issues, he pointed out, that adversely affected the garments export, which otherwise performed well in the previous year.

Analysts also felt that Pakistan is the exporter of basic commodities and textile products that are essential part of daily life in the world and the demand for these products, though suffered from global economic recession, remained more or less intact. The high-tech export sector suffered worst from this global financial crunch, they added.

Azam said that foreign buying houses in major USA and EU markets are willing to place huge orders provided Pakistani exporters could meet their demand for timely shipment of export consignments.

However, the prolonged power outage particularly in the recent weeks has made the conditions miserable for the export sector and is denting its competitiveness in the international market.

He cautioned that matters would get worse in the winter when along with power outage, gas load shedding would also be done, which would prove to be a complete disaster for the industry.

Apart from the problems attached with the utilities, the high cost of financing is another major factor burdening the industry and making it difficult to operate on full capacity. Azam pointed out that the demand for garments is still there and the competitors-China, Taiwan and Bangladesh-are taking full advantage of the situation by grabbing Pakistan's share.

Lamenting the power crisis and other infrastructure problems that are hurting export-oriented industries, Azam said it was the biggest criminal act of previous government that it didn't add a single MW of electricity in its nine-year rule.


----------



## Omar1984

*MoC accepts third-party audit of trade offices ​*
By Sajid Chaudhry 

ISLAMABAD: On the incessant demand of the business community the Federal Secretary Commerce, Suleman Ghani, showed his willingness for initiating independent third party audit of the performance of the Pakistan trade offices around the world. 

While addressing a post trade policy press conference here he said that all chambers of commerce of the country could come and sit with us so that criteria for performance evaluation is developed. He however made it clear that performance evaluation could not be conducted on the sole criteria of increase or decrease in exports as the dynamics of export performance is not dependent on the activities of the trade offices only.

&#8220;There might be negligence on the part of commercial counselors and we are always willing to address the grievance of the exporter community, as this would help us to correct the deficiency if any,&#8221; secretary explained. 

He also strongly defended the continuous foreign tours of the trade minister and said that at a time when major economies are facing decline in exports, Pakistan has been able to minimise such a decline through these visits. Commerce minister has visited eight countries for promotion of trade relations and exports enhancements. These visit have been successful and would help the country in future for expansion of trade with trading partner countries, he added. The importance of trade policy minus textile policy remains intact, as it would help promote exports in textile as well all other sectors. 

He said trade diplomacy is the major pillar of exports promotion strategy and trade diplomacy would focus on getting market access to United States and European Union. United States have agreed to form a study group under existing arrangement of Trade and Investment Facilitation Agreement (TIFA) to analyse the free trade possibilities. Similarly, EU Communiqu&#233; issued at the end of recently concluded Pak-EU Summit mentioned market access dialogue to be initiated this year. 

There is a vast scope for promotion of regional trade and its increase from 17 percent to 25 percent is aimed in during the three years 2009-12. Promotion of trade with India is linked with composite dialogue and early resumption of composite dialogue would help promote bilateral trade with India. 

During the last meeting between Trade Secretaries of SAARC member countries the determination to remove non-tariff barriers and facilitate trade within the framework of SAARC was expressed. He said despite law and order situation in Afghanistan, bilateral trade is growing similarly trade with Iran is also on the rise. There is vast scope of promoting trade and enhancing exports to China by benefiting available incentives under Pak-China FTA, as we have not been able to benefit from the bilateral free trade arrangement properly. 

The government has earmarked Rs 60 billion for facilitating trade and industry in the budget and five funds are established under Trade Policy Framework 2009-12 to be financed through these funds. Ministry of Commerce would have no role in the management of these funds as the policy of the government aims at concerned ministries to manage and deliver desired results. 

He said if the government succeeds in reducing trade losses it would be a great achievement in 2009-10. However, trade targets for next two years have been set at an ambitious level i.e. 10 percent growth in 2010-11 and 13 percent growth in 2011-12. Pakistan wants conclusion of WTO Doha Round by end of this calendar year, as Pakistan to benefit from liberalization of trade in services and industrial goods under Non Agriculture Market Access. In this regard, the federal cabinet has empowered the Ministry of Commerce to plan tariff reduction schedule for possible conclusion of Non Agriculture Market Access (NAMA) agreement. 

He informed that during next six months a policy and plan of setting up of a certification board for promotion of Halal food exports would be finalised to benefit the opportunities available in the world markets. To a question on allowing free import of cars and other vehicles for the benefit of the consumers, the Secretary said that Ministry of Industries and Production is already working on formulation of comprehensive policy for auto sector.


----------



## Omar1984

*First export-oriented floriculture project to start next year ​*
By Razi Syed

KARACHI: The first of its kind technology based pilot project in floriculture will start commissioning in mid 2010, Pakistan Horticulture Development Export Board (PHDEB) said on Tuesday.

&#8220;The aim is to promote export oriented flowers industry for earning millions of dollars per annum by increasing export to UAE, Saudi Arabia and European Union beside others&#8221; chief executive officer PHDEB, Shamoon Sadiq said while talking to Daily Times.

Talking to official PHDEB, the Federal Minister for Commerce, Amin Fahim said &#8220;the PHDEB under the umbrella of Ministry of Commerce had initiated a number of steps to develop floriculture sector in the country.&#8221;

Sadiq said the project would be started on a large scale covering an estimated area of 1000 acres as per embarked by PHDEB and the cost rendered would be an estimated Rs 280 million in Punjab would start work on cut flowers and technology based floral culture. Not only this, but it would provide around 250-300 direct employments while thousands of indirect jobs.

He said after the release of funds by the mid of next year by the Planning Commission, PHDEB would achieve targets regarding promotion of flower industry by launching pilot projects in various cities of the country. The project includes model farm of 32 hectors consisting of green houses and pack houses, that project will be export oriented as role model for floriculture.

Pakistan has export potential in the global markets like UAE, Saudi Arabia and Russian Federation and European Union, he added. This is because in Pakistan majority of flowers are produced in winter while Europe yields low production in the same season due to snow. Since most of religious and traditional occasions are held in this period, it serves as an excellent opportunity for Pakistan to promote floriculture sector to fulfill the demand of European markets. 

Meanwhile, the stakeholders of floriculture asked the government to fulfill their demand of setting up the Common Facility Centre (CFC) in Sindh and Punjab provinces.

The spokesman of Horticulture Society said according to PHDEB, CFC were to be set up over an area of 75 acres, equipped with the latest conservation agriculture technologies like drip irrigation as well as storage and refrigeration facilities to enable growers and exporters to remain competitive in international markets.

However, in order to compete with the world, we need to study the economic trends, such as shortage or over-supply of some flower species in particular seasons, as such factors result in changes in prices that may become too low to grow them economically, he said.

Pakistan, mostly a fresh flower market, is almost flooded with roses, a flower preferred in all types of ceremonies, as well as in perfume industry and in many Auravedic and Greek medicine preparations. Other flowers making a debut in the fresh flower business here include tuberose, tulip, lily, jasmine, gladioli and even orchid and other less popular and therefore, less important varieties.


----------



## Omar1984

*Businessmen term Trade Policy &#8216;positive&#8217; ​*
ISLAMABAD: The business community on Tuesday termed the new Trade Policy 2009-12 as positive because it provided traders a consistent policy framework for three years along with envisaging relief measures for many sectors.

They also appreciated the overcoming of supply-side constraints and creating different funds to support industries. The zero-rating of all kinds of exports was a good incentive for manufacturers-cum-exporters to improve their profitability, the President of Islamabad Chamber of Commerce and Industry, Mian Shaukat Masood said in a meeting. 

He said that although incentives have been provided to light engineering industry in trade policy but government had not identified the specific sectors of light engineering that would benefit from these incentives and asked the government to resolve this vagueness. 

He said the government should have announced textile policy immediately after trade policy as delay in announcing textile and monetary policies meant that textile sector would lose first quarter of current financial year to improve exports, which would be a great loss to the economy. 

The ICCI chief said the USA and EU had provided duty free access to Bangladesh for textile products which badly affected exports of Pakistani textiles and to avoid further business losses, many Pakistani textile sector businessmen were considering moving their businesses to Bangladesh. He urged the government to immediately take up this matter at hand with Western and European countries to provide same incentives to Pakistan to save textile industry from further damage.

Shaukat said that a long-time demand of the textile sector for incentives on international business travels had again been set aside in the policy despite the fact that the developed countries had issued travel advisories on traveling to their citizens to Pakistan compelling the local exporters to meet their foreign buyers abroad, which increased their international business expenses.

He said the Trade Policy seemed to have focused too much on exports while in the current situation of global economic meltdown triggering significant downfall in exports, promotion of domestic market and trade should have been given proper attention too.

However, he lauded the subsidies announced for fisheries, leather and such sectors and subsidy in inland freight charges, saying that the government was also needed to implement the policy immediately to start achieving its desired goals. staff report


----------



## Omar1984

*Govt to spend Rs 35.22bn on Trade Policy initiatives ​*
ISLAMABAD: The government intends to spend Rs 35.22 billion on Trade Policy initiatives announced under Trade Policy Framework 2009-12, according to the Trade Policy presentation made to the federal cabinet. 

Exporters are forced to pay indirect taxes, estimated to be around 9 percent of the cost of production. Trade Policy 2008 proposed a study to calculate the burden of these taxes and recommended an interim relief to fourteen sectors in shape of additional duty drawback at 1 percent of export value. Though the cabinet approved the proposal, FBR did not allow additional duty drawback. 

It has been decided that exports would be completely zero-rated till the decision to give additional duty drawback to specified sectors is implemented. The sectors which will benefit from this measure are tents & canvas, electric machinery, carpets, rugs and mats, sports goods, footwear, surgical/ medical/ veterinary/ beauty care instruments, cutlery, onyx products, electric fans, furniture, auto-parts, handicrafts, jewelry and pharmaceuticals. 

Currently exports of all types of pulses are banned due to domestic supply reasons despite growing international demand for this item. It has been decided that exports of pulses obtained on processing of imported inputs to be allowed subject to necessary safeguards against export of indigenous pulses. 

Export of motorcycles was facilitated through R&D support of $50 (Rupee Equivalent)/ Unit. However, the disbursement was started in end of FY 2008-09. It has been decided that the support may be continued till June 2010. 

A large number of export consignments of rice are being rejected due to aflatoxin infestation; a condition attributed to high moisture contents of paddy. The possibilities of aflatoxin infestation can be minimised by introducing paddy harvesters and paddy dryers, which the farmers are reluctant to procure due to high cost. It has also been decided that matching grants to be given to farmers and rice millers for purchase of paddy harvesters and paddy dryers. 

Good Agricultural practices are essential to ensure food safety both locally and in export markets and thereby tend to have better acceptability; our agricultural sector is lacking recognized agricultural practices standards. Thus, It has been decided that PAKGAP (Pakistan Good Agricultural Practices) standards initially for five major horticultural exports (citrus, mango, date, potato and onion) may be worked out by MoST and implemented by MINFA in collaboration with PHDEB. 

It was decided in trade policy 2008-09 that a farm-to-port cool chain will be established, till completion of cool chain, support for cool chain and cold storages for horticulture will be given at 8 percent or 50 percent of the markup, whichever is lower. It has been decided that this facility for horticulture to be continued. 

Energy efficiency of the boilers being used by our industries can be enhanced by 30 percent thereby, to reduce the cost of production. Service providers for conversion of boilers are available but are reluctant to come to Pakistan. To encourage conversion of boilers for increasing efficiency the government should underwrite the agreement between service providers and the industry. 

To promote Gems and Jewelry sector, the Cabinet in Trade Policy 2008, approved waiver of customs duties and sales tax on import of Gold, Diamonds, Silver, Platinum, Palladium and precious stones. The waiver was not extended to pearls and other synthetic or reconstructed precious or semi precious stones although these are increasingly being used in jewelry production. Further FBR did not comprehensively implement the decision. It has been decided to exempt natural pearls and other synthetic or reconstructed precious or semi precious stones from customs duty and sales tax. Implementation of Cabinet decision is to be expedited. 

At present, export of edible oil from Pakistan is allowed in retail packs. The permission for export in bulk should be allowed. There have been export demands for domestic edible oils like sun flower, canola and cotton seed. It has therefore; been decided that export in bulk of these oils (sun flower, canola and cotton seed) may be allowed. 

Absence of sui generis law on Geographical Indication (G.I) has exposed Pakistani G.I products particularly Basmati rice to infringements. The draft G.I law is under preparation. It has been decided that that G.I law may be enacted on fast track basis and Trade Development Authority of Pakistan (TDAP) may be given the mandate to apply for and to hold GI registration of Pakistani products. 

Presently there is no restriction on import of Poppy seeds as far as the origin is concerned. Single convention binds the signatories to import poppy seeds only from the countries where it is legally produced. In view of the international commitments it has been decided that source of import of opium poppy seeds may be restricted to the countries where it is legally produced. 

Import of secondary quality iron and steel sheets/plates / coils is allowed, provided the sizes are over 48&#8221; (length) x 20&#8220;(width). The size restriction is irrational and difficult to implement. The industrial users face difficulties in getting clearance of unsorted scrap, which adds to the cost of doing business. It has been decided that minimum size restrictions on import of secondary quality iron and steel sheets/plates/coils to be waived off. sajid chaudhry


----------



## Omar1984

*Power generation top priority of government; Gilani ​*


ISLAMABAD, Jul 28 (APP): Prime Minister Syed Yusuf Raza Gilani Tuesday said increasing power generation was the top priority of the government and development funds have been diverted to meet the shortage.Talking to media after a ceremony to inaugurate a pharmaceutical plant here at the PM Secretariat, Gilani said the leadership of the country was fully cognizant of the problems being faced by the masses. 

Gilani said shortage of electricity was a matter of serious concern for both the industry and the public and he would soon convene a meeting of the four Chief Ministers to discuss these matters and austerity measures. 
The prime minister to a question said most of the circular debt has been cleared and added that with a cut on the development funds the rest would also be retired. 

About the use or rental power, Gilani said the issue of power deficiency was being addressed through a comprehensive strategy and the entire focus of the government was on resolving this serious issue. 

He said the leaders of Pakistan stand with their people and as they were enduring load-shedding, he too had ordered strict compliance of no-use of airconditioners before 11 am. 

&#8220;Even if the army chief or ambassador Anne W Patterson comes to me before that time, we use pedestal fans,&#8221; Gilani said. 

About the recommendations of the committee on Balochistan submitted to him, he said it comprises all proposals and suggestions clubbed together, with a view to address the grievances of the province. 

He said Balochistan has suffered injustices over the past 62 years and his government has resolved to address these. He said it was yet to be decided whether to convene a jirga or an All Parties Conference to discuss these issues with the Baloch people. 

Referring to his decision on the local government system, Gilani said he has submitted his recommendations to the President and the MQM was fully onboard.


----------



## Hyde

*Four-nation transit agreement: Pakistan to assist Tajikistan in granting access to participants ​*
ISLAMABAD (July 29 2009): Pakistan has proposed giving access to Tajikistan in the Quadrilateral Agreement for traffic in transit in a bid to enhance trade activities among contracting countries of the agreement. Pakistan, China, Kyrgyzstan and Kazakhstan have signed Quadrilateral Agreement, which is in operation since 2004.

Sources told Business Recorder that during the meeting of Pak-Tajikistan Joint Economic Commission (JEC) on July 20-21 here in Islamabad, Pakistani officials raised the issue of joining Tajikistan in the Quadrilateral Agreement, and assured full support to the Tajik officials in this regard.

According to sources, Pakistan side in a meeting of JEC assured the Tajik side that Pakistan would assist Tajikistan in granting access to the Quadrilateral Agreement among Kazakhstan, China, Kyrgyzstan and Pakistan.

Sources said that the Tajikistan side was informed that Pakistan is supportive of inclusion of Tajikistan in the Quadrilateral Agreement, and the matter of joining of Tajikistan in the Agreement on Traffic in Transit was also raised by Pakistan side during the expert level meeting held on September 25, 2008 at Astana Republic of Kazakhstan. Pakistan side emphasised that access to Tajikistan to this agreement may result in enhancing and fortifying the existing trade activities within territories of contracting member states.

Due to non-participation of China, an important member state of Quadrilateral Agreement, in the expert level meeting, the other member countries could not consider the matter and it was decided that this issue may be discussed in the next Experts Level meeting. "The joining of Tajikistan in the Quadrilateral Agreement is one of the agenda items of the Expert level meeting which would be shortly held in Kyrgyzstan, sources said.

The present trade volume between Pakistan and Tajikistan is not encouraging, and there is great potential to enhance and strengthen the economic co-operation between the two countries. Pakistan exports cotton fabrics, synthetic fabrics and other textile items and leather products, whereas it imports raw cotton from Tajikistan.

Trade with Tajikistan is negligible due to absence of road communication and high transportation cost limits the ability of exporters to compete prices of Chinese and Iranian goods which now flood the markets of Tajikistan. Preferential Trade Agreement (PTA) between Pakistan and Tajikistan may also result in enhancing trade volume between the two countries, sources added.

Commerce Ministry officials briefed the JEC meeting that high tariff rates prevailing in Tajikistan were another obstacle in enhancing trade between the two countries, and reduction in the tariffs on Pakistan's exportable products could result in boosting trade. PTA can be also helpful in this regard, sources added.

Reactions: Like Like:
1


----------



## Omar1984

*Cabinet Ministers Committee on Energy Crisis discusses KESC ​*
KARACHI, July 29 (APP): The Federal Cabinet Ministers Committee on Energy Crisis in the country met here at Governor House to exclusively discuss the issue of KESC and decided to summon KESC&#8217;s management owners next Wednesday to explain their company&#8217;s financial viability, their financial problems and deficit areas. The meeting, which continued for over four hours, was attended by Sindh Governor Dr Ishrat&#8209;ul&#8209;Ebad Khan, Chief Minister Syed Qaim Ali Shah besides Federal Ministers Raja Parvez Ashraf, Qamaruzaman Kaira, Naveed Qamar and Syed Khurshid Ahmed Shah and concerned senior officers. 

Later briefing the journalists, Information Minister Qamar Zaman Kaira said that although this committee has been established for energy crisis of whole country but in today&#8217;s meeting KESC related matters were discussed in detail. 

He said three major areas of generation, transmission and distribution problems were mainly focussed besides their requirements for oil, gas and IPP related issues. 

He said after detailed discussion it was decided that the Cabinet Committee will hold another meeting next Wednesday with the KESC&#8217;s Executive Board and the company owners, who have also been called to provide company&#8217;s financial inputs, cash flow and if they are facing any deficit, then how to meet it so that their financial problems too are resolved. 

Kaira said that the agreements which are to take place between KESC, SSGC and other organizations, if pending, would be finalized within a week while SSGC has ensured to constantly meet the 276 MMCF gas requirement of KESC which would help increase the generation by 100&#8209;150 MW. 

He said final decision was taken with MD SSGC who was also invited to the meeting. 

The Federal Minister said that PSO has been directed to ensure smooth oil supply to KESC with 90 days credit and in case of any problem of difference, the same would be handled by Ministry of Finance. 

On the issues with IPPs, he informed the KESC has assured that their supplies would not suffer in case there was problem of non&#8209;payment and they would supply 1750 MW non&#8209;stop. 

Besides, he said MD PEPCO also attended the meeting and Raja Parvez Ashraf clearly told him that they have to maintain their supplies non&#8209;stop to KESC which is about 650 MW and plus. 

He said that although there is electricity crisis in the whole country, but keeping the importance of Karachi in view, the supply from PEPCO will continue non&#8209;stop. 

Kaira referred to a 80 MW DHA power project, which was held up for quite some time, would supply electricity for backup support and this additional generation will be supplied to Karachi next month. 

He said this project would accrue another benefit to Karachi by way of additional supply of 3 mgd drinking water which would prove to be a big relief. 

Touching upon the KESC&#8217;s transmission issue, the Federal Information Minister pointed out that generation issue is comparatively lesser than transmission and distribution issues. He said since the present management took over KESC they planned the upgradation of existing 650 MV grid stations, instal and replace the transformers and construct new grid stations and started work thereon. 

He said in order to improve the transmission line, they have installed 650 MV transformers. He said if transmission will not improve the distribution problem will remain, notwithstanding the generation of power. He said the required demand would be met, but it is most essential to upgrade the distribution system and complete 490 MV installations in grid stations by december. 

Mr Kaira said that KESC was told to instal high powered transmission and distribution transformers as soo as possible on war footing and if they don&#8217;t have the required transformers they can be helped in getting them from WAPDA for the time being until they import their own so that Karachi&#8217;s urgent needs are met with. He said that till December last, KESC had replaced 10 percent lines of 62 year old distribution network and their effort is to completely revamp the network within one year. 

The Information Minister said that in today&#8217;s meeting KESC was directed to take up Gulshan&#8209;e&#8209;Iqbal, Gulberg and Shah Faisal as model towns and revamp their entire transmission and distribution networks by August 31 whereafter other Towns will be taken up for similar purpose. 

He said that their financial commitment in this regard will be fulfilled and it was for this purpose that their owners have been called for a meeting on coming Wednesday. 

He said that this committee and the government will fully watch their work in this regard and in the presence of Governor and Chief Minister assured to provide them 100 percent support of the provincial and city governments and the police and August 31 will be the last date whereafter no delay will be tolerated. He said that by December, as is being said, load&#8209;shedding will be controller throughout the country and also the urgent needs of Karachi will be met by that time. 

Pointing out that power load in houses in Karachi is much more than the sanctioned load and, therefore, the demand which is generating is also to be met. He said the system after revamping will not only meet the present crisis but also meet the future one. He said that both Governor and Chief Minister graciously decided to form a committee which, along with KESC. launch a crackdown against power theft and kunda system will be wiped out for which police support would be fully made available. 

The Minister said that it was decided to provide free of cost meters to those who are using electricity illegally and power theft in any form will not be tolerated. He appealed to people of Karachi to identify those who steal power for which people pay for the same. 

&#8220;It is last warning for them to get their power supply system regularised&#8221;.


----------



## Omar1984

*Pakistan, Tajikistan to initiate strategic dialogue, cooperate in energy ​*
DUSHANBE (Tajikistan), July 29 (APP): Pakistan and Tajikistan on Wednesday agreed to initiate a strategic dialogue on regional peace, security and development, besides cooperation in energy sector.President Asif Ali Zardari and his Tajik counterpart Emomali Rahmon in their wide-ranging talks held at Qasr-e-Millet - Palace of the Nation, also agreed to establish regional electricity networks and early implementation of the Central Asia South Asia 1000 MW project. 


The two leaders also vowed to explore and establish transit and transportation corridors, including direct air flights to link the two countries. 
President Zardari who is in the Central Asian Republic on a three-day visit, also had a joint press stakeout along with his Tajik counterpart and termed terrorism and militancy as the biggest threat to the 21st century. 

&#8220;We stand together against this threat and have decided to cooperate in other areas as well,&#8221; President Zardari said. 

He said the two countries have agreed to enhance cooperation in banking and transportation sectors, with the sole intention to bring the two people closer. 

President Zardari and President Rahmon also stressed the importance of having greater interaction between the private sectors of the two countries. He said Tajikistan has rich natural resources and the two countries can gain a lot from increased cooperation. 

President Zardari said Tajikistan can make a use of Pakistan&#8217;s land routes and ports Pakistan, which will bring trade and economic benefit to the nations. 

President Zardari and Tajik President also had an exclusive meeting before the delegations of the two sides joined them at the bilateral talks. 

During the bilateral talks President Zardari was assisted by Foreign Minister Shah Mehmood Qureshi, Interior Minister Rehman Malik, Commerce Minister Makhdoom Amin Fahim, Minister for Industries and Production Mian Manzoor Ahmad Watoo, Spokesman to the President former Senator Farhatullah Babar and senior officials. 

A joint statement issued at the end of the talks said the two countries will take joint measures to realise full potential of their bilateral trade and economic relations on mutually beneficial projects. 

The two countries also agreed on the need of expediting and establishing regional electricity networks. They stressed for early implementation of the CASA 1000 MW project. 

&#8220;Both sides agreed to undertake further studies and measures needed for its implementation and invited international organizations and financial institutions to contribute funding to the project,&#8221; said the joint statement that was signed by the two leaders at a ceremony here after the talks. 

The foreign ministers of two countries also signed two bilateral documents including a Protocol on exchange of Instruments of Ratification of Agreement between Pakistan and Tajikistan on the Promotion and Protection of Investments; and an agreement for cooperation - in different areas of bilateral interest - between their ministries of foreign affairs for the years 2009-2012.The Presidents of Pakistan and Tajikistan witnessed the signing of bilateral documents. 

Separately the two sides also signed a framework cooperation agreement between the Federation of Pakistan Chambers of Commerce and Industry and Tajikistan Chamber of Industry for strengthening bilateral cooperation between the private sectors of the two countries. 

The Joint Statement said both President Zardari and President Rahmon expressed their desire to further improve brotherly relations and enhance mutually beneficial cooperation between the two countries. 

The two leaders affirmed that strengthened Pak-Tajik bilateral relations will contribute to regional peace, security and development. The two sides also took into consideration the principles enshrined in the Charter of the United Nations, the May 2004 Joint Declaration of Pakistan and Tajikistan on further development of friendly relations as well as other bilateral documents. 

The two sides agreed that shared cultural affinities and historic experiences, economic complimentarities and geographic proximity have made Tajikistan and Pakistan virtual neighbors. Better relations were in mutual interest of both countries and region, the joint statement said. 

To comprehensively upgrade cooperation in all spheres and fields, the two sides will enter into an enhanced partnership based on the principles of the UN Charter, including respect for sovereignty and territorial integrity and non-interference in each other&#8217;s internal affairs. 

The two countries agreed to initiate a strategic dialogue on regional peace, security and development, with a view to developing greater understanding on issues of common interest and mutual benefit. 

The leaders of Pakistan and Tajikistan agreed to take joint measures to realize the full potential of bilateral trade and economic relations, and undertake mutually beneficial projects in the areas of infrastructure, communications, energy and industry. 

The two countries will take appropriate measures to enhance bilateral trade including early implementation of the ECO Trade Agreement (ECOTA), to which both are parties. 

Pakistan and Tajikistan will promote business linkages, and to this end facilitate interaction among their respective corporate sectors through exchange of business delegations and establishment of joint business forums. 

The two sides were satisfied at the outcome of 3rd Pak-Tajik Joint Economic Commission held in Islamabad on July 20-21. The two sides will vigorously pursue agreements and understandings reached at the Commission. 

Pakistan and Tajikistan, the joint statement said, will work jointly to explore and establish transit transport corridors linking the two countries, and also take measures to revive direct air links. 

The two leaders agreed on the need to expedite establishment of regional electricity networks. The two sides emphasized in particular, early implementation of the CASA-1000 project. To this end, both sides agreed to undertake further studies and measures needed for its implementation, and invited the international organizations and financial institutions to contribute funds for the project. 

Pakistan and Tajikistan, the joint statement said, condemn terrorism and extremism in all forms and manifestations and expressed their readiness to cooperate closely, bilaterally and within regional frameworks in combating these twin threats, through among other means, arresting flow of arms and ammunitions and eliminating sources of terror funding. 

The two countries were also concerned on the increase of illegal turnover of narcotics drugs, psychotropic substances and precursors and the organized crime. In this regard, the two sides will strengthen bilateral cooperation including by promoting exchange of information among relevant authorities. 

Tajik President further appreciated Pakistan for its sacrifices in the fight against terrorism, and expressed full confidence in Pakistan&#8217;s ability to effectively deal with this menace. 

Pakistan and Tajikistan, the statement said, support the role of Shanghai Cooperation Organization in promoting peace, stability and socio-economic development in the region. &#8220;Tajikistan will contribute to Pakistan&#8217;s participation in programmes and initiatives within the framework of SCO.&#8221; 

The two countries extended their support to the government of Afghanistan to achieve peace and solid stability in the country, to improve economic and social conditions and to establish an independent and democratic society that embodies the interests of the people. 

They called upon the international community and international financial institutions to channel all assistance directly through the Government of Afghanistan, on projects identified by Afghan authorities. 

President Zardari expressing gratitude for the warm hospitality, invited the President of Tajikistan to pay an official visit to Pakistan, who accepted the invitation. The date of visit will be coordinated through the diplomatic channel. 

Earlier on his arrival at the Qasr-e-Millat, President Zardari was warmly received by the Tajik President Emomali. A contingent of Tajik army presented guard of honour to President Zardari. National anthems of the two countries were played. 

President Zardari also received the Chairman of the Upper House (Majlis-e Milli) Mahmadsaid Ubayduloev and met Prime Minister of Tajikistan Okil Okillov. 

The President is also scheduled to hold trilateral and quadrilateral meetings with the leaders of Tajikistan, Afghanistan and the Russian Federation.


----------



## Omar1984

*PM urges world not to attach strings with economic aid ​*
ISLAMABAD, Jul 29 (APP): Prime Minister Yusuf Raza Gilani Wednesday urged the international community &#8220;not to attach any strings&#8221; with the provision of financial assistance to Pakistan.&#8220;I ask the international community to help Pakistan in overcoming its problems rather than creating hurdles,&#8221; the Prime Minister told the media after a surprise visit to the National Database and Registration Authority (Nadra) centre here. 

Gilani stressed that any economic aid to Pakistan including the Kerry Lugar bill should not be made conditional. 
He said Pakistan is a sovereign country and added that &#8220;we would never compromise on its honour, dignity and self respect.&#8221; 

About his visit to the Nadra Centre in G-8 sector, Prime Minister Gilani said he had directed the authorities to reduce the delivery time of Computerized National Identity Cards (CNICs) from one month to 15 days. 

He directed that the contract employees of Nadra be regularized, as has been done in all the departments and directed the Ministry of Interior to send a summary to the cabinet committee in this regard. 

Earlier, the Prime Minister went around different sections of the centre and asked the people their problems. Regarding the complaints for long wait time, the Prime Minister directed the NADRA officials to take urgent steps to facilitate the people and increase the number of counters to entertain maximum number of applicants at a time. 

The Prime Minister said his visit was to personally see the problems being faced by the people in getting CNICs. He directed that the waiting period for standing in long queue be reduced. 

The people asked the Prime Minister to send the prepared cards to them through mail or couriers so that they do not have to waste their time. 

When pointed out about some lacunae found in the CNICs of Afghan refugees, the Prime Minister said such cases must be brought to notice so that immediate action be taken.


----------



## Omar1984

*Exploitation of resources to lead to prosperity: Zardari ​*
DUSHANBE, Tajikistan, July 29 (APP): President Asif Ali Zardari on Wednesday said that Pakistan, Tajikistan and Afghanistan are resource-rich neighbours and there is a need to exploit these resources through mutual cooperation which will lead to region's prosperity. Speaking at a banquet hosted by Tajik President Emomali Rahmon for the presidents of Pakistan and Afghanistan, Asif Zardari said that the friendship between the three countries will further strengthen regional cooperation. 

"It is ages old wisdom that you cannot change your neighbours. 

It is time for Central Asian countries and the countries of south Asia to sit together and improve their relations and enhance cooperation for the benefit to its peoples," he said. 

"The three countries can make a difference in this world." 

President Zardari appreciated Tajik President for the efforts which brought them together in Dushanbe and said the friendship of the three countries will go a long way in promoting regional cooperation and prosperity. 

"You will not find Pakistan lacking in all its endeavours," the President remarked. 

He said Pakistan will cooperate in every way to augment the efforts for regional cooperation so that the three countries can realize their potential in economic and various other fields. 

Tajik President Emomali Rahmon referred to the cultural and historic ties between the three countries which he said, were a natural binding force. 

Tajikistan, he added, will support every effort for peace in Pakistan, Afghanistan and Asia at large. 

Afghan President Hamid Karzai said that the trilateral trade and economic cooperation can take the people of the three countries towards prosperity and progress. He appreciated Tajik President for his efforts in this regard. 

"It reflects aspirations and initiatives of the leaders to make efforts for peace and progress in the region," he stated. 

The three Presidents were seated at the main table alongwith Tajikistan's Prime Minister Okil Okilov and Chairman of the Upper House Makhmadsaid Ubaiduloev. 

The Pakistani delegation comprising ministers Shah Mahmood Qureshi, Rehman Malik, Makhdoom Amin Faheem and President'sspokesman Farhatullah Babar also attended the banquet.


----------



## Omar1984

*Financial year 2008-09: Pakistan&#8217;s oil production drops by 6&#37;, gas up 0.5% ​*
Staff Report

KARACHI: Pakistan&#8217;s oil production witnessed a sharp decline of 6.2 percent in 2008-09 to 66,678bpd (barrels per day) against 71,120bpd for the previous year. 

As per the production data released by PPIS for 11MFY09 and weekly data of Jun-09, the major oil producing fields such as Adhi, Chanda and Pindori witnessed reduction of output by 8 percent, 18.3 percent and 73 percent, respectively. 

However, output of Mela, Kunar, Dahkni and Pashki fields was up by 10.7 percent, 25.3 percent, 23.3 percent and 38.2 percent, respectively.

On the other hand, the gas production marginally grew by 0.5 percent to 4058mmcfd in FY09. This was on account of enhanced year-on-year production from gas fields of Adhi up by 2.1 percent; Bhit up by 9.7 percent; Dakhni up by 44.4 percent ; Loti up by 4.4 percent; Kandkot up by 21.6 percent and Qadirpur up by 3.46 percent. 

The said incremental effect mitigated the decline in production from Sawan, which decline by 17 percent and stagnant production from Sui. Apart from the above-mentioned fields, another major field Zamzama, also witnessed a decline. 

The Exploration and Production (E&P) companies of oil and gas witnessed mixed trend in output of energy resources. Pakistan Petroleum Limited (PPL) oil as well as gas production diminished by 0.4 percent and 4 percent, respectively. On the other hand, oil and Gas Development Company (OGDC) gas production surged by 6.1 percent due to completion of development activity in Qadirpur, however, its oil production diminished by 6.1 percent. 

Pakistan Oilfield Limited (POL) was the worst performer amongst its peers as its oil production declined massively by 23 percent owing to the decline in production in its major field Pindori. Further, a fall of 13 percent in Makori field also contributed to POL&#8217;s total decline. 

Pakistan&#8217;s drilling activity in FY09 remained tilted towards the appraisal/development of wells, with 59 wells being drilled against a target of 50 wells. 27 exploratory wells were spud in the mentioned period against a target of 40 wells. OGDC exceeded its development wells target as it spud 18 wells (target of 15). Three of OGDC&#8217;s wells were plugged and abandoned, which is expected to increase company&#8217;s exploration costs for 4QFY09. Moreover, drilling activity is expected to get a boost from the MoP&#8217;s recent foray into the international market in order to attract foreign investment by offering an additional 53 blocks.


----------



## Omar1984

*WAPDA focused on hydropower, water uplift: Durrani ​*
LAHORE: In the wake of WAPDA's bifurcation in 2007, it is fully focused on the development of water and hydropower resources in the country. 

This was stated by Chairman WAPDA Shakil Durrani while addressing a delegation of the 6th Mid Career Management Course of the National Institute of Management, Peshawar, on Wednesday at WAPDA House. WAPDA Member (Water) Syed Raghib Abbas Shah, Managing Director (Administration) Naveed Akram Cheema and senior WAPDA officers were also present on the occasion. 

WAPDA chairman said that both water and hydropower sectors were neglected during the last three decades. But at present, WAPDA is working on a number of water and hydropower projects to cope up with the increasing demand of water and electricity in the country. Construction work on Diamer Bhasha Dam will start next year. It is a mega water sector project with a live water storage capacity of 6.4 million-acre feet.

Besides providing water for agriculture, Diamer Bhasha Dam will also generate 4,500 megawatts (MW) electricity, he added. The chairman further said that construction of 969MW Neelum-Jhelum Hydroelectric Project (NJHEP) is progressing satisfactorily. Earlier, General Manager (NJHEP) Hasnain Afzal, briefing the delegation said that WAPDA is constructing five dams, three mega canals, five hydropower and two drainage projects under Vision 2025. staff report

Reactions: Like Like:
1


----------



## Omar1984

*&#8216;2 power generation units to arrive before December&#8217; ​*
KARACHI: Federal Minister for Water and Power Raja Parvez Ashraf has said that two ship-mounted power generation units of 235 megawatts (MW) of a Turkish company would arrive here before December 2009 and are linked to the city&#8217;s power supply system.

Addressing a press conference after a meeting of Cabinet Ministers Committee on Energy crisis, which discussed Karachi Electric Supply Company (KESC) issue exclusively, the minister told journalists that tariff of the company has been approved by National Electric Power Regulatory Authority (NEPRA).

He pointed out that at present the generation cost comes to Rs 8.37 per unit while electricity is being supplied to people at Rs 5.37 and thus the government is subsidising the energy to the tune of Rs 140 billion per year or Rs 12 billion per month. &#8220;We want to first overcome this shortfall as the government does not want to put pressure on the people.&#8221; He said that under the plan, the government is going for thermal, rather than for Jhelum and Bhasha Hydel and to coal and solar energy. He pointed out that the present government has inherited the energy shortfall of 3000MW to 3500MW.

He said that of this shortfall, 1,500MW would be procured from held up or slow-going IPPs and for another 1500MW, the owners of various companies have assured that they are bringing their projects on time.

Replying a question that power meters installed or fast, Ashraf said that he would get these meters tested from PEPCO experts and if found defective, these would be replaced.

Regarding rental power units, he said these would arrive before December 2009. He said these rental units have been obtained on 3 to 5 years contract through international bidding. app


----------



## Omar1984

*Marble industry rejects trade policy ​*
ISLAMABAD: All Pakistan Marble Industry Association has rejected the new Strategic Trade Policy Framework as it failed to provide solutions to the problems of marble industry, which has suffered badly because of unrest in the frontier province. 

The executive body of the marble association met here on Tuesday under the chair of Furrukh Majeed, president of the association. The meeting reviewed the announcement made in the trade policy. 

The meeting concluded that the provincial government of NWFP has banned the blasting for mining purposes, which has stopped the supply of raw material. Moreover all the marble cutting and polishing units in NWFP are closed due to ongoing military operation in the area. 

Furrukh Majeed told that the marble industry has to import raw material from Lesbeela, Lora Lai, Karachi, Mainwali and Kalabagh, which has doubled the freight charges. 

In a press briefing, Furrukh informed that despite the difficulties and hurdles the marble export has grown by 40 percent during previous fiscal year. According to him, during 2007-08 the country made marble exports of $25 million which have grown to $40 million in 2008-09. He said that United States, Italy, Middle East, China, Malaysia and Russia were potential markets for marble export. 

Majeed said that the association has submitted its recommendations for consideration in trade policy and not a single proposal was accepted. He said they proposed ministry of commerce to facilitate marble sector in holding marble exhibition in potential markets to introduce the precious verities of marble. The association had also asked government to give marble industry participation in trade delegation to world market. Furrukh said that the exhibitions and exchange visits help a lot in attracting international buyers. 

Abdul Sami, Ex Chairman of Marble Association, pointed out that due to growing unrest in the country international reluctant to visit Pakistan to place orders therefore the exhibitions and trade delegations are essential to capture export orders. Main Sami criticized the role of Trade Development Authority and said that instead of facilitating exporters the authority has banned holding of industrial fair and exhibitions, which also gave negative signals to potential buyers. 

The Marble Association has also demanded industry status for the mining sector. President Marble Association said the investors couldn&#8217;t invest in mining sector with modern drilling and blasting technologies because the sector doesn&#8217;t have status of industry and Banks not provide loaning facility. Moreover the mining rules were also not provide equal investment opportunities in mining of marble as it reserves for local people of specific area. 

Abdul Muneeb, Chairman of the Association said that the country doesn&#8217;t have modern trucks for transportation of heavy weights like marble and normal trucks are being used for transportation of marble raw material which added into the cost of business. They asked government to allow duty free import of heavy weight modern trucks and excel to facilitate marble and other industry.


----------



## Omar1984

*&#8216;Poverty reduced by 13&#37; in PPAF targeted areas&#8217; ​*
ISLAMABAD: There is a reduction of 13 percent in poverty alleviation in those areas where Pakistan Poverty Alleviation Fund (PPAF) partner organisations have extend micro-credit facilities, Chief Executive Officer, PPAF, Kamal Hyat expressed these views during an interview with Daily Times here on Wednesday. He 

said the figures were revealed by the study carried out by the Gallup survey on PPAF activities. 

Like other government organisations, he said the PPAF had also the same objective of poverty alleviation and improving standard of living of people at grass root level. He said the PPAF was a new model on public private partnership with objective strengthening people at community level. It was a private entity fully sponsored by the government with provision of full autonomy. He said the organisation mainly deals with micro-credit through partner-organisations for the last 10 years. The PPAF covers 4500 villages through its network and 90 percent districts across the country benefited from micro finance scheme. 

Since establishment of the organisation, the PPAF chief said that 19,000 infrastructure schemes were initiated and going on successfully till now. It established 100,000 Community Social Mobilizers (CSM), who worked with the partner organisations in the development of respective areas. Most of the development schemes were carried out through these social mobilizers. 

Usually, he said, the donors come for a project and after completion they wind up every thing but the situation in PPAF was different. When the organisation completed PPAF-I with $90 million, the World Bank asked for another project PPAF-II and now again sponsored for PPAF-III. He said through partner organisations, the PPAF disbursed $533 million micro-credit and the default ratio was zero and 100 percent success. 

After such success stories, the World Bank had rated the PPAF &#8216;AAA&#8217; rate, which was rare in the South Asia, he claimed. At the back of WB, several international financial institutions like EFAD, KFW, USDA, USAID also contacted PPAF and carried out several developmental schemes at gross root level in the country. 

About funding, the MD PPAF said that through government (Economic Affairs Division) negotiations the donors forward their funding, which he claimed was spending judiciously. He said the PPAF never directly negotiate with donor agencies for financial assistance. Adviser to Prime Minister on Finance, Shaukat Tareen, said that he wanted to spend all government funds through PPAF due to track record, he claimed. &#8220;Not only donors but the government also trusts us.&#8221; 

&#8220;We work for Social Mobilization of community and through it we inform the community about their constitutional rights and create awareness among them&#8221;, he added. Under this programme, the people were informed about rights of a person in constitutions and their responsibilities in the economic development of the country. Main purpose of the social mobilization was to narrow the gap between state and citizen. 

About proper monitoring, Kamal Hyat said the PPAF had own evaluation, research and development cell, which visited after every three months and get critical reports from partners&#8217; organisations. Two studies were also carried out by Gallup research organisation, to find out economic impact of the PPAF activities. They termed the performance of the PPAF excellent. The studies also pointed out some flaws, which were removed accordingly. 

Answering another question, the MD PPAF said the organisation recent started works on to arrange finance locally from chambers of commerce and philanthropists with in the country. &#8220;We want to reduce whole dependency on international donor agencies and seek financing from Gulf and Middle East countries as well as locally&#8221;. 

Recently, he said the PPAF contribute Rs 140 million in different mode for Internally Displaced Peoples of Buner, Malakand and Swat and expressed the hope that the organisation would contribute in rehabilitation process subject to restoration of peace there. For this purpose, he said the organisation would need intervention of local partners from the concerned affected areas. 

About future target, he said the organisation needed huge funding to cover the whole country in next 10 years.


----------



## Omar1984

*Rental power producers to generate 2,200MW ​*
LAHORE: Rental power producers have renewed their commitment to swiftly producing 2,200 megawatts of affordable electricity to power the country&#8217;s homes and industries.

According to a joint statement issued on Wednesday by local and foreign companies setting up fast-track rental power projects to help Pakistan meet its emergency requirements, the rental power producers agreed &#8220;to collectively and meaningfully inform the public about rental power to counter a misinformation campaign questioning these necessary and nationally-important projects.&#8221;

They noted with concern that the campaign against rental power producers was reminiscent of a vilification campaign in the 1990s against independent power producers (IPPs), without which Pakistan would have plunged into darkness.

&#8220;All rental plants were transparently and competitively bid for and were technically evaluated to gauge suitability and affordability under a policy that has been approved by three successive governments,&#8221; said the joint statement.

&#8220;Pakistan must work on sustainable and long-term options based on hydel, coal, wind and nuclear plants,&#8221; said the producers. &#8220;Rental plants based on brand new, zero-rated and also secondary-market plant and machinery through a variety of global technology, EPCC, O&M (operation and management) and equity partnerships provide an immediate solution to Pakistan&#8217;s energy needs and are set up in six to eight months after the contract of commissioning.&#8221; The IPPs take three to four years and hydel projects significantly longer.

&#8220;Rental contracts have a term of three to five years and hence carry a higher risk for rental power producers. However, rental power tariffs are mostly lower than those for new IPPs despite the fact that loan repayments, interests on loans, O&M (operation and management) and other costs are amortised over three to five years instead of 10 years for IPPs,&#8221; said the producers. &#8220;Rental tariffs compare favourably with tariffs for upcoming IPPs.&#8221;

The rental power producers also pointed out that Pakistan Electric Power Company (PEPCO) paid only for power that was produced and delivered, and that too 60 days in arrears. &#8220;Critically, gas-run rental plants are required to achieve an availability of 92 per cent and RFO-based rental plants are required to achieve an availability of 85 per cent,&#8221; said the producers. &#8220;Failure to achieve these availability requirements attracts financial penalties calculated on the basis of 1.5 times of the tariff for the shortfall.&#8221;

The producers said there were no government guarantees or support for raising funds for rental power projects. &#8220;The risk and responsibility are wholly assumed by rental power companies and not the government. The government guarantee is issued exclusively to cover any performance default on part of PEPCO or the state-owned company purchasing rental power.&#8221;

The producers also emphasised that the 7-14 per cent mobilisation advances given to rental plants were secured against bank guarantee.

A meeting of rental power producers held the other day was attended by representatives of Techno Engineering Services, Young Gen Power, Gulf Rental Power Project, Ruba Energy, Reshma Power, Premier Energy, Pakistan Power Resources and Walters Power International.


----------



## Omar1984

*No loadshedding in Karachi by Dec, says cabinet panel ​*
KARACHI: The Ministerial Committee on Energy Crisis has claimed that loadshedding will be eliminated from Karachi by the coming December as it had succeeded in resolving the issues between all the stakeholders &#8212; ranging from the gas company, the oil company, to power generating units and the KESC management.

Members of the cabinet committee, including Minister for Water and Power Raja Pervez Ashraf, Information Minister Qamar Zaman Kaira, Minister for Privatisation Naveed Qamar and Syed Khurshid Shah, announced this on Wednesday at the Governor&#8217;s House after a detailed meeting with all the stakeholders.

Raja Pervez Ashraf told the media that Wapda would continue to supply 650 megawatts of electricity to the KESC despite a power crisis in the country while PSO had been advised to provide non-stop supply of oil on 90 days&#237; credit to all the power generating units and the Sui Southern Gas Company will also be giving the required 276 mmcft non-stop supply of gas, which will help in generating 100-150 megawatt additional electricity in the system.

The cabinet committee met at the Governor&#8217;s House to discuss in detail the power crisis in Karachi, the commercial hub of the country. Sindh Governor Dr Ishrat-ul-Ebad Khan and Chief Minister Syed Qaim Ali Shah also attended the meeting.

The committee summoned the KESC management to discuss the issues facing the power utility and the issues regarding the IPPs. After the discussion, the committee identified the problems &#8212; generation, transmission and distribution &#8212; to improve the performance of the power utility. It was decided that the committee would meet again next week and the KESC would brief it on the financial management of the utility.

Information Minister Qamar Zaman Kaira told the media that these measures would help the KESC generate 1,750 megawatt non-stop electricity, while Raja Pervez Ashraf directed the Pepco to continue supplying 650 megawatt power to the KESC to cater to its needs.

Kaira said CEOs of two IPPs were present at the Governor&#8217;s House to sign an agreement with the KESC that would add 80 megawatt power in the system of the utility in August. He said due to this addition, the people of Karachi would get 3 MGD more water. As a role model, the utility has been given the task to completely revamp the distribution and transmission in three towns &#8212; Gulshan-e-Iqbal, Gulberg and Shah Faisal by the end of August. The Sindh government will provide full assistance in revamping of these three role model towns.

It was decided to eliminate power theft and Kunda system, for which the police will assist the utility in rooting out this menace. Power theft will not be tolerated and the government will not allow a handful of people to hold the entire city hostage, Kaira warned and appealed to the citizens to identify power thieves and cooperate with the KESC.


----------



## Omar1984

*&#8216;Trade policy to help deepen trade with Malaysia&#8217; ​*
ISLAMABAD: High Commissioner of Pakistan in Malaysia, Lt General (Retd) Tahir Mahmud Qazi said on Thursday that the new trade policy encompasses a provision of insurance cover for visiting buyers including Malaysian and would help restore investor confidence. Commenting on the salient features of the Trade Policy 2009-12 announced by Minister of Commerce Makhdoom Amin Fahim, he said it aims to set the country on the path of sustainable high economic growth through exports. staff report


----------



## Omar1984

*Draft of 10-year investment policy finalised ​*
ISLAMABAD: The initial draft of the first ever 10-year investment policy and investment promotion strategy has been finalised with major objectives like poverty reduction through job creation and rapid industrial development of the country. 
The policy would protect local as well as international investors against adverse policy changes as well as political victimisation in future governments and ensure continuity of economic policies in the country. 
The policy aims at attracting over $10 billion to $15 billion foreign direct investment annually in the country by providing legal, physical infrastructure as well as more favorable incentives regime, official sources told Daily Times on Thursday. 
This draft would be made public for feedback during a media briefing at Ministry of Investment where Federal Minister for Investment, Waqar Ahmed Khan, would highlight the salient features of the policy and strategy, sources added. 
In order to ensure ownership of the policy by the all the federal ministries and provinces, the input from all the public sector stakeholders have already been obtained and incorporated in the draft. 
On the directions of the minister of investment, it has been decided to release the draft of the policy for private sector input before it is sent for approval. 
The act of parliament would require the future government to honor in letter and spirit the investment agreements as well as Memorandum of Understandings signed during the successive governments. Legislation, first of its kind in the world, aims at protecting the investors from sporadic changes in economic policy in subsequent governments. Although the constitution of the country provides protection to the investors under investment agreements signed with the present day government against unfavorable treatment in the future governments. However, this kind of protection is mainly available to the foreign investors only and local investors don&#8217;t have any such protection. Changes in the government leads to a random change in economic policies, which puts the investors in an uncertain position and the revenue streams are dry either temporarily or permanently.
The investors are left with no choice to create political linkages in present political set up as well as future to protect their investment. For this purpose they are forced to tread the path of kickbacks and commissions&#8212;transaction costs. 
For finalisation of draft of the investment promotion and protection act, changes or amendments in many existing laws would be needed. While citing example of Investment Act 1976, sources that this law is totally outdated and doesn&#8217;t meet the present day needs. Similarly, Economic Reforms Act, Land Laws, Securities and Exchange Commission of Pakistan&#8217;s law, Tax Laws and other number of laws would be required to be amended so that aim of protection and promotion of investment in Pakistan is achieved. The new law would provide appeals in higher courts instead of lower courts for the speedy settlement of investment disputes between the parties in this regard, first stage of appeal is proposed to be high courts against the existing practices, he added. In this regard the ministry would also approach Supreme Court of Pakistan for seeking proper advice and guidance. 
Other proposed initiatives like establishment of Special Economic Zones for attracting investment in the country, investors making investment in SEZs would be given income tax exemption for 10 years and zone developers would also enjoy same facility. There would be no restriction on industrial units set up in SEZs to sell within the country or export to any country their production. Industrial units located in SEZs would be enjoying true zero rating for their imports and the imports of raw materials and all capital goods would be exempted from general sales tax, federal excise duty, withholding tax and customs duty. A high powered SEZ Board would be constituted with Prime Minister as its chairman and all four chief ministers and Prime Minister AJ&K, federal ministers from all economic ministries, and all important national and international chambers would also be given representation in the said board.


----------



## Omar1984

*Rs 5 million allocated for ROZs in FATA ADP ​*
ISLAMABAD: The Federally Administered Tribal Areas (FATA), in its annual programme 2009-10, has earmarked a token money of Rs 5 million for activities related to Reconstruction Opportunity Zone (ROZs), sources told Daily Times here on Thursday. 
Total allocations for these activities were Rs 150 million, for which the FATA Annual Development Program (FADP) 2009-10 allocated Rs 5 million for the current year. 
A ROZ would have duty-free access for certain specified textile and apparel products, as well as non-textile products to the US market up to September 30, 2024 sources claimed. 
The ROZ&#8217;s was actually proposed by the former US President George Bush during his visit to Islamabad in 2006 and the House of Representatives had approved the initiative and the legislation was now awaiting approval from the Senate.
The sources claimed that the government officials and industrialists were of the view that the ROZs issue was highly politicized and its future depended on security situation in the region (FATA). The ROZs legislation after passage from the House, now awaited action by the Senate Foreign Relations Committee before it could be approved by the Senate and enacted by the President. 
The scheme was initiated for both Pakistan and Afghanistan and their respective governments have to fulfill a number of conditionalities which included labour laws&#8217; and strict enforcement apart from ensuring peace and security in the targeted areas. 
The governments, as per the legislation, will be required to establish a labour monitoring programme in the ROZ, designate a labour official responsible for the monitoring of the programme and to appoint textile or apparel producers to participate in the labour monitoring programme. 
Advisor to Prime Minister on Finance, Shaukat Tarin in his visit to US urged the Washington to quickly approve legislation aimed at creating jobs and fighting extremism in Pakistan and Afghanistan. Sources claimed that the objective behind the plan was to create economic opportunities in the tribal areas and woo the tribesmen, who might have loyalties with the Taliban. 
The FADP for 2009-10 included 44 schemes in different fields, allocating Rs1.150 billion which included construction of small dams/power, minerals, skill development, research and development, industries, special initiatives consists of physical planning and housing, tourism development and SME financing. During the ongoing fiscal year, the FADP allocated Rs 500 million for 13 small dams/power projects although the total cost of these projects was Rs 3.901 billion. Rs 340 million were allocated for 13 mineral related projects, while total cost of these projects were Rs 1.362 billion. For &#8216;Skill Development&#8217; the FADP earmarked Rs 125 million for 4 developmental schemes while total cost of these projects was Rs 644 million. 
There were four schemes related to Research and Development, the FADP allocated Rs 112 million to it while total cost of these projects was Rs 231.864 million. For Industrial development, the FADP earmarked Rs 29 million for five developmental schemes while total cost of these projects was Rs 260.200 million. 
Under Special Initiatives, the FADP allocates Rs 44 million for five developmental projects related to Physical Planning and Housing, Tourism Development, and SME Financing for the year 2009-10 whereas the total cost of these five projects was Rs 393.696 million.


----------



## Omar1984

*UN chief calls Benazir Income Support Programme model for other countries ​*
UNITED NATIONS, July 31 (APP): Secretary-General Ban Ki-moon on Thursday praised the Benazir Income Support Programme (BISP), saying it was oriented along the lines of his vision of helping the world&#8217;s most vulnerable people. The secretary-general made these remarks during a meeting with Chairperson of BISP Farzana Raja at UN Headquarters in New York when she briefed him on the progress resulting from the eight-months-old programme, which is aimed at empowering women and reducing poverty. 
Ms. Raja told Pakistani journalists after the 30-minute meeting that the Secretary-General took note of the fact that BISP is based on the Millennium Development Goals (MDGs), the globally agreed set of social and economic targets that are supposed to be realized by 2015. 

She said that Ban proposed that Pakistan share this &#8220;model programme&#8221; with other countries, especially those in South Asia. &#8220;I congratulate the President (Asif Ali Zardari) and you for helping the most vulnerable people of your country,&#8221; Ban told the Chairperson. 

&#8220;This programme is good for your country, good for your people and should be shared with other countries.&#8221; Through sheer hard work, she said, programme is already extending financial help to 2.2 million deserving families against the target of 3.5 million in which the household woman receives Rs. 1,000 per month. 

The idea, she added, was to bring the women into the mainstream. Besides cash help, the programme caries other benefits like health and accident insurances as well as vocational training so that the recipients ultimately become self-sufficient. 

Farzana Raja said she also told the secretary-general that the programme was non-partisan designed to help the most deserving Pakistanis. &#8220;This is not a party specific programme, it is for the people of Pakistan, because of its transparency, the entire world, donor agencies are cooperating and are sending their offers to us,&#8221; she said. 

Ms. Raja said a poverty census was being carried out across the country with the help of the World Bank to identify more deserving households so that they could benefit from the programme. In addition, She said the BISP was also helping the families of the victims of bomb blasts and those of the earthquakes as well as the displaced persons from the Swat region. 

During the meeting, Ms. Raja also conveyed messages of greetings from President Zardari and Prime Minister Yousaf Raza Gilani to the secretary-general who warmly reciprocated their sentiments. She also said she invited Ban on behalf of the Government of Pakistan and he accepted the invitation. 

Farzana Raja also paid a courtesy call on the President of the UN General Assembly, Miguel D&#8217;Escoto Brokmann. Earlier, she conferred with Ajay Chibber, Assistant Secretary-Generl and Regional Director at the United Nations Development Programme (UNDP).


----------



## Omar1984

*Pakistan woos global, Canadian, companies to invest in oil & gas sector 
​*
WASHINGTON, Jul 31 (APP): Pakistan urged the Canadian investors on Thursday to take advantage of its liberal policy package for the oil and gas sector which is fully deregulated and provides a level -playing field and tremendsous business opportuntiies for private and public companies. Inaugurating a two-day &#8216;Pakistan Exploration Promotion Conference 2009&#8217;, in Calgary, Alberta, Dr. Asim Hussain, Advisor to the Prime Minister on Petroleum and Natural Resources, said the country offers attractive oil and gas investment opportunities with liberal terms and a competitive fiscal regime. 
Representatives of major oil and gas companies based in Calgary including Shell Canada, EnCana, SNC-Lavalin, Jura Energy etc participated in the conference, a news release said Thursday. 

Similar conferences were held in London on July 23rd and 24th, and in Houston, US on July 27 and 28. 

Dr Hussain told the businessemen that Islamabad&#8217;s new petroleum exploration and production policy 2009 provides opportunities for all investors for a friendly, profitable and competitive environment in the oil and gas industry. He also stated that the government was prepared to accommodate as far as possible to facilitate the needs and requirements of multinational investors, including joint venture arrangements with Pakistani private and public sector companies. 

He informed the participants about the hydrocarbon potential in Pakistan which is estimated at 27 billion barrels of oil and 280 trillion cubic feet of gas. He added that given the fact that only 3.4 per cent oil and 19 per cent gas out of this prognostic potential had been realized, there thus exists vast potential for exploration. 

Dr. Asim Hussain sounded optimistic and said that the recent studies conducted by foreign companies indicate that Pakistan is rich in hydrocarbon potential and given the accelerated and optimal exploitation of its sedimentary basins the country can not only achieve autarky for its needs but it can also be able to meet the energy needs of other countries as well. 

&#8220;We are offering 54 blocks to exploration companies for competitive bidding while other free areas are also available to any company interested,&#8221; Dr. Hussain said. 

He said his country&#8217;s current gas production stands at four billion cubic feet per day (BCFD), while requirements are growing at a fast pace and the existing gas fields are declining. A supply-demand gap of 4 bcfd is projected for 2015 which will grow to 6 bcfd by 2020 and 11 bcfd by 2025. Although Pakistan is pursuing gas import options from Iran and Central Asia, these will be remain far short of the requirements and hence the need for an accelerated domestic exploration programme of natural gas. 

Dr. Hussain pointed out that only 742 exploratory wells have been drilled so far out of 80,000 square kilometres of onshore and offshore basin area. These have resulted in more than 221 discoveries containing one billion barrels of oil and 53 trillion cubic feet of gas. 

With average discovery size of 45 million barrels oil equivalent, highly attractive terms of engagement under a new petroleum policy and together with a large number of open acreages available, Pakistan offers a land of opportunities for any hydrocarbon explorer. 

In his welcome address, Pakistan Consul General in Vancouver, Moin ul Haque spoke of the present government&#8217;s endeavours to promote foreign investment in upstream petroleum sector with a view to exploit indigenous hydrocarbon resources in an optimal manner while maximising returns for foreign investors. 

The Consul General also noted deep rooted and historic relations between Canada and Pakistan, where the first dam in Pakistan; Warsak dam and the first nuclear power plant KANNUP were built with Canadian assistance. He also mentioned that even now many big companies such as Barrick Gold and SNC-Lavalin are operating in Pakistan.G.A. Sabri, Special Secretary, Minstry of Petroleum highlighted the salient features of the policy covering certain fiscal incentives provided therein and also answered the queries of the participants. 

George Wachtel of OMV also shared his views about the new Petroleum Policy and termed it the best package providing lucrative fiscal incentives for the E&P companies. He also lauded the conducive and congenial business environment in Pakistan from the point view of 20 years working experience of OMV being one of the largest gas field operators in Pakistan. The conference was addressed by the former Petroleum Secretary, Dr. Gulfraz Ahmed, Blair Shimmield, VP of LMKR.


----------



## Omar1984

*Pakistan, Afghanistan, Tajikistan agree on joint cooperation in trade, energy sectors ​*






DUSHANBE, Tajikistan, Jul 30 (APP): Pakistan, Afghanistan and Tajikistan on Thursday agreed to strengthen cooperation in trade, energy and communication sectors besides tackling the challenges of terrorism and extremism in the region. This was agreed in a trilateral meeting of the leaders of three countries at the picturesque resort Varzob, some 40 kilometres from Dushanbe. 
During the meeting, the three leaders underscored the importance of further promoting bilateral and economic relations, with implementation of joint projects in areas of energy transfer from Tajikistan to Pakistan and Afghanistan as well as construction of inland rail road for transportation of passengers and goods. 

The three sides agreed that terrorism is a regional phenomenon that necessitates a comprehensive, concerted and coordinated approach with full participation of regional states and local communities. 

President Zardari in a joint stake out with two leaders termed the event historic that brought together the three nations to jointly own the challenges of terrorism and economy. 

&#8220;We stand together and work together. We will jointly face all the challenges together,&#8221; President Zardari said, adding that the cooperation would result into the prosperity of future generation. 

President Zardari proposed that the three leaders should meet every year to strengthen cooperation in various sectors. 

Afghan President Hamid Karzai and Tajik President Emamoli also reiterated their resolve to cooperate for peace and stability in the region. 

After the meeting, the three leaders also signed a joint declaration.

Reactions: Like Like:
1


----------



## Spring Onion

*TAPI gas pipeline: Pakistan suggests alternate route* 


ISLAMABAD (August 02 2009): In the wake of stepped-up tactics by the Taliban in Afghanistan, Pakistan has proposed to Turkmenistan an alternate route in western Afghanistan to finalise the much-delayed Turkmenistan- Afghanistan-Pakistan-India (TAPI) gas pipeline, a senior official in the Ministry of Petroleum said on Saturday.

"Alternate western route in the militancy-plagued Afghanistan is under discussion to lay down the TAPI gas pipeline without further delay. The route will be between Afghanistan-Iran and Pakistan-Iran and then again it will enter Balochistan," official said.

He said that the Afghanistan government was in favour of that alternate western route for laying down the gas pipeline. "The TAPI pipeline will pass near Rakho Deeq copper mines project in Balochistan's Chaghai area and will reach the Gwadar port," he added.

Taliban militants are active elsewhere with special reference to the lawless Pak-Afghan border region and the earlier proposed pipeline was feared to be damaged. Pakistan has conveyed to Turkmenistan that more than 72 percent insurgency-related cases by the extremists elements are being taking place on weekly basis on the earlier proposed TAPI gas pipeline route where it links Herat to Kandahar.

"Afghan authorities have also agreed with the Pakistan's point of view that the western route for TAPI gas pipeline is viable and it has been de-mined to make it protected in line with security point of view," the official added.

Another official in the Petroleum Ministry said on condition of anonymity because he was not authorised to speak on the issue: "If the proposed alternative western route is accepted by Turkmenistan, then the length of gas pipeline will reduce to 1,490 kilometres instead of earlier estimated length 1680 kilometres on Herat-Kindhar route."

The official said the alternative western route was feasible and would be acceptable to India, and added Pakistan was set to establish liquefied natural gas (LNG) terminal at Gwadar port, providing a golden opportunity for India to import LNG.

Turkmenistan did not so far come up with any tangible response on the proposed route. "Once the four countries are agreed on timeframe, modalities and other parameters, then an independent consultant will be hired under the Asian Development Bank (ADB) to convert the project into a bankable report," he said.

Turkmenistan has said that it has gas reserves of eight trillion cubic meters, but Pakistan and India want certification about the gas reserves before taking any further step on the TAPI gas pipeline project. Under the proposed project, Turkmenistan will supply 3.2 bcfd gas, which would be shared by Pakistan, Afghanistan and India.

Earlier, the project steering committee meeting on TAPI was held in Islamabad on April 21-24, 2008 and Turkmenistan pledged to submit the audit report on certification of gas reserves by September 30, 2008. The ADB representative in a meeting of the steering committee had expressed reservation over the delay of the project.


Copyright Business Recorder, 2009

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## Spring Onion

*Textile policy may be announced in two weeks: 'Rs 40 billion earmarked for export development' *

RECORDER REPORT 
KARACHI (August 02 2009): The government has allocated Rs 40 billion for the textile sector export development fund in the textile policy. This was stated by Federal Minister for Textiles, Rana Muhammad Farook Saeed Khan here on Saturday. Speaking at a meeting of the All Pakistan Textile Processing Mills Association (APTPMA), the minister said the textile policy was in final stages and expected to be announced in next 10 to 15 days.

He said textiles sector could play an important role in reducing unemployment and overcoming menace of terrorism by creating job opportunities. The minister said it had been proposed that commercial attaches should be hired from among the Pakistanis living abroad.

The present lot of commercial attaches was playing almost no role in enhancing exports, he admitted. Replying to a question, he said the textiles board would be rehabilitated after the announcement of the textile policy. He assured the business community that the government would address the problems of the textile industry without any further delay and expressed his confidence that the textile policy would provide relief to the industry and make it competitive.

About the Research and Development (R&D) fund, the minister said, "It is no more an issue. It has gone now." About stuck-up refunds of R&D, the minister said the government had already settled 40 percent of Rs 12 billion claims and remaining claims would be settled soon.

Federal Secretary Textiles, Dr Waqar Masood Khan said preparation of a comprehensive textile policy was the main objective of the ministry. He said the policy would address the issues of up-gradation of machinery, provide infrastructure facilities and focus on human resource development to enable the industry to compete in the international market. He said the minister of textile was negotiating gas prices for textile industry with the ministry of petroleum.

Adviser to Sindh Chief Minister for Investment, Zubair Motiwala said although Bangladesh was producing not a single bale of cotton, export of its value added textile sector had touched more than 8 billion dollars. He said Pakistan had no option but to provide matching facilities with its competitors in international markets, adding that there was need to reduce cost of production.

APTPMA Chairman, Muhammad Nisar Sheikhani said economic crisis was deepening due to worsening problem of power outages, gas load shedding, water shortage and high cost of manufacturing. He said export could only be increased if the government managed to reduce cost of production and provided level playing field to exporters.


----------



## Hyde

*Proposed new Investment Policy 2009-2010 announced ​*
ISLAMABAD (August 02 2009): Federal Minister for Investment Senator Waqar Ahmad said that the government has announced proposed new Investment Policy 2009-15.' The New Investment Policy envisages major policy initiatives for materialising the vision of President Asif Zardari and Prime Minister Yousaf Raza Gilani as well as in accordance with the manifesto of the party.

The new policy focuses on policy and legal frame work, promotion and advocacy and initiatives and implementation. The present government wants to put the country on road to economic stability by alleviating of poverty, creation of job opportunities and decreasing the trade deficit through increased productivity of our agriculture and manufacturing sector. Senator Waqar Khan informed the media that under the new policy, it has been envisages that Special Economic Zones would be created in the country to attract foreign and domestic investors.-PR


----------



## Hyde

*$75 billion investment envisaged in five years: minister unveils new policy draft ​*
ISLAMBAD (August 01 2009): The Government on Friday unveiled a new five years proposed investment policy that would offer tariff incentives to attract around $75 billion local and foreign investment in the next five years in oil and gas, energy and agriculture sectors.

The Minister for Investment, Waqar Ahmed, at a news conference here on Friday said that this investment would come through Special Economic Zones (SEZs) in various sectors of the economy. These SEZs are being set up across the country, he added.

The minister said that investors would be given five years' tariff holiday on imports of raw material and machinery, and to developers for a period of ten years. The policy would provide alternative dispute resolution mechanism to investors, which would have judicial cover, and end interference of 27 different agencies.

The policy encompasses investment strategy having three action programs to attract foreign direct investment. These include enhancing the international image of Pakistan as an investment location, promoting investment projects internationally and providing services to potential foreign investors in Pakistan.

These three action programs would be interdependent and mutually supportive, having components of a coherent investment promotion cycle. The investment promotion activities in Pakistani agencies Smeda, PC and PPIB would be co-ordinated with the foreign investment promotion strategy with a view to maximising synergies and sending a coherent message about Pakistan to the international investors.

The minister claimed that with improvement of law and order situation in the country after operation against militants not only Pakistan's image had improved abroad but also the foreign investors are keen for making investment in different sectors of the economy.

He said that the new policy would act as a catalyst for attracting investment and help in bringing about economic stability and employment generation. The investors would be provided one-window operation at over 24 buildings of SEZs in different cities, and they would be given assurance for continuation of policies. These initiatives would help in achieving about $15 billion annual foreign and local investment in various sectors of the economy. The investors would have one-window operation at over 24 buildings in different cities, he said.

Replying to questions, the minister said that provinces were also consulted and taken on board regarding the proposed policy. The new policy, he said, would be based on about three or four pillars, including institutionalising a structural public-private policy dialogue, strengthening investment protection, launching a foreign investment promotion strategy, and enhancing the capacity building.

Waqar said that the policy was being unveiled to have dialogue by the public and private sectors on it and for seeking inputs from other stakeholders. The minister said that the policy would provide a baseline for chalking out other economic policies and would help achieve the desired economic stability and employment generation.

He did not give any timeframe for implementation of the policy which, he said, had been made public for seeking inputs from media and other stakeholders. He avoided answering a question about whether the government had sought any input from the chambers of commerce or business community, while compiling the policy.


----------



## Hyde

*'Pak-Morocco trade volume to grow with increasing ties' ​*
KARACHI (August 01 2009): Through strengthening the relations the existing trade volume of $400 million between Pakistan and Morocco can be enhanced in coming days. This was stated by Ishtiaq Baig, Honorary Consul General of the Kingdom of Morocco, during celebrations of 10th anniversary of the enthronement of His Majesty King Muhammad VI at a local hotel, here on Friday.

Baig said that large quantity of textile products is exported to Morocco, which would be increased in future as the business communities of both the countries have shown their interest in enhancing mutual trade.

Pakistan on the other hand is importing phosphates from Morocco, he said, adding that both countries are trying to increase their capacities by introducing trade in other sectors as well. "Both countries have vast opportunities of development in the field of tourism and the mutual co-operation can boost this sector," he added.

A large number of businessmen, diplomats of different countries, bankers and political figures attended the ceremony.

Sindh Assembly's Deputy Speaker Shehla Raza, the chief guest congratulated King Muhammad and the Moroccan people and hoped that bilateral relations would grow more.


----------



## Hyde

*Japanese economic zone to be set up near Karachi ​*
KARACHI (August 01 2009): A special Japanese economic zone would be established near Karachi on 2,000 acres of land, a high level meeting at Chief Minister House decided this on Thursday night. Chairing the meeting Chief Minister Sindh Syed Qaim Ali Shah underlined the need to provide all facilities at Japan Special Economic Zone (JSEZ) to boost industrial growth with special emphasis to develop agro-based industries.

Earlier, Advisor to Chief Minister Sindh for Investments Zubair Motiwala in his briefing said Pakistan-Japan Business Forum (PJBF) after holding mutual dialogues in Tokyo on May 15 had recommended that due attention should be given to agriculture and human resource development with rapid industrialisation for which more incentives and tax cuts should be given.

He said that during his last year's visit to Japan the Chief Minister had approved the proposed zone land near Dhabeji on Karachi-Thatta National Highway about 50km off Karachi. The zone would have access to National Highway close to Pakistan Steel Mills, Port Qasim and Quaid-e-Azam International Airport, he added.

The meeting was informed that the JSEZ land would be developed and the approach-road would be constructed and security of developers would be ensured.

It was decided that Chief Secretary Sindh would co-ordinate with the government stakeholders to develop roadmap and concept plan, including the development of the master plan, infrastructure, project design, marketing etc. All the facilities would be provided to the investors under one roof.

It was proposed that there should be zero rating of customs duty, reduction in sales tax and excise duty while there may be income tax holiday for a period of 10 years. Provision of electricity, gas, water, transport, railway linkage and approach-road would also be provided.

IG Sindh Police Babar Khattak assured the meeting of full security for the developers in and around the zone. The meeting was attended by Chief Secretary Sindh Fazl-ur-Rehman, Additional Chief Secretary (Dev) Nazar Hussain Mahar, Secretary BOL Islamabad, provincial secretaries for finance, home, transport, works and services, Member (LU) Board of Revenue Sindh, DCO Thatta, officers of KESC, SSGC, KWSB, President PJBF and others.

Reactions: Like Like:
1


----------



## Hyde

*Proposed new Investment Policy 2009-2010 announced ​*
ISLAMABAD (August 02 2009): Federal Minister for Investment Senator Waqar Ahmad said that the government has announced proposed new Investment Policy 2009-15.' The New Investment Policy envisages major policy initiatives for materialising the vision of President Asif Zardari and Prime Minister Yousaf Raza Gilani as well as in accordance with the manifesto of the party.

The new policy focuses on policy and legal frame work, promotion and advocacy and initiatives and implementation. The present government wants to put the country on road to economic stability by alleviating of poverty, creation of job opportunities and decreasing the trade deficit through increased productivity of our agriculture and manufacturing sector. Senator Waqar Khan informed the media that under the new policy, it has been envisages that Special Economic Zones would be created in the country to attract foreign and domestic investors.-PR


----------



## Hyde

*Government completes 22 schemes in FR Kohat ​*
PESHAWAR (August 03 2009): The government has completed 22 various schemes, while seven are in progress for the socio-economic uplift of tribal communities in FR Kohat, the spokesman of Fata secretariat said on Sunday. 'By initiating various development projects, Fata secretariat has enabled the office of the Assistant Political Agent to address all the legitimate demands of general public,' he said.

Assistant Political Agent, FR Kohat, Sajid Ahmad, showed his complete satisfaction over the pace of these projects, as so far 22 schemes have been implemented whereas seven schemes are in progress.

Under these schemes thousands of the local residents of FR Kohat have benefited from clean drinking water, protection from flood, paved streets, school rehabilitation and youth engagements activities. Assistant Political Agent FR Kohat said that maintaining high standard in quality is hallmark of the schemes implemented in FR Kohat with the support of Fata secretariat. The community elders must come up with innovative ideas for the socio-economic development of the Tribal Communities of FR Kohat.

The government would definitely entertain these ideas and would positively respond to them by translating them into coherent and well thought projects, he added.


----------



## ejaz007

*New plant to boost Bosicors production by 160,000 bpd*
Staff Report 

KARACHI: The domestic crude oil refining capacity is estimated to increase by more than 160,000 barrel per day by July 2010 with the completion of $400 million new plant of Bosicor Pakistan Limited.

Speaking to the newsmen, President Oil Refining Business, Zafar Haleem said the new oil refining plant would be the largest ever in the country that would significantly curtail dependency on imports of various petroleum products.

He said the existing oil refining unit will start its enhanced production of 40,000 barrel per day by March 2010 whereas the new under construction unit will increase the overall production of company to early 20,000 barrel per day.

Haleem said the company has planned to install isomerization unit with a capacity of 12,500 bpd, which will convert the heavy naptha into high quality motor gasoline, adding the petro-chemical unit of the company will also start its production after six to eights months of the completion of refining unit.

He said the government should fix the processing fee for oil refining company instead of linking its pricing and margins with international market prices.

The oil refining company reaped windfall profits when the crude oil prices were higher but their profits nose dived as the crude oil price plunged. In this uncertain market situation coupled with governments inconsistent policy, the refineries have been facing severe financial trouble.

Kalim A Siddiqui, President Marketing Business, Bosicor Pakistan Limited said the expansion of the refinery will strengthen the companys economy of scale significantly and would also help in reducing oil import bill in the future.

He said government should frame consistent policy for oil industry particularly for the oil refining companies.

Siddiqui mentioned that Bosicor has retained its 1.5 percent share in the overall oil marketing business, which will enhance within two years after establishment of its new retail outlets in the country.

He said the Bosicor will also establish state-of-art retail outlets of petroleum products and auto gas and will attract customers with its highly quality of products and services.

The company has almost constructed crude oil storage tanks with the capacity of 144,000 tonnes, which includes the largest crude oil storage tanks of the country.

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## Omar1984

*KSE gains 151 points on foreign buying ​*
KARACHI: The uninterrupted inflow of foreign funds kept the Karachi bourse set on upward track this week. The local financial institutions were more cautious and took to profit-selling on lucrative margins.

The KSE 100-share Index rose 151.30 points or two per cent on weekly basis and settled at 7,872.23 points. The parallel running junior 30-Index surged 147.27 points or 1.8 per cent and finished week at 8,343.20 points.

&#8220;The release of the third tranche of IMF standby loan of $840 million and approval of an additional $3.1 billion loan may help the market to cross the 8,000 points level smoothly in short term,&#8221; said M. Sohail at Topline Securities.

The decision would strengthen rupee against the dollar on temporary basis, which would help limit the twin deficits making the market attractive during the result season, analysts opined.

Next to the IMF loan, the Monetary Policy Statement of central bank is likely to effect the trading on the bourse. Any change in discount rate will impact market accordingly.

One big surprise for the market during the week was the aggressive buying by offshore investors. According to the latest numbers released by NCCPL, net foreign buying stood at US$19.14 million during the week. 

This is the highest weekly net inflow witnessed by the market in last 15 months - since the week ended on April 25, 2008, reported Bilal Qamar at JS Research.

Though the received foreign funds at local bourse was mere 3.3 per cent of the total invested money in the market during the week at Rs45 billion, but the continuous inflow of overseas investment maintained market sentiments bullish this week, commented another analyst.

With net Rs45 billion investment at bourse this week, the overall market capitalisation surged to Rs2,323 billion. 

Accordingly, the average turnover of the week recoded at 134.5 million shares, which is 12.6 per cent higher than 119.4 million shares of last week. 

A section of analysts, including Hasnain Asghar Ali at Aziz Fidahusein, doubted the source of inflow of foreign funds and expressed that they might be locals who were injecting their black money into the market through some international channels.

Sharp rally in oil prices attracted investors&#8217; interest in Exploration & Production (E&P) and other energy stocks. As a result, market capitalization of E&P and Oil Marketing Company (OMC) sectors rising by three per cent & 4.4 per cent, respectively, said Qamar. 

KASB added that Independent Power Producers (IPPs) also rallied on possible resolution of circular debt within a month. During the week, above-expectation annual results triggered rally in Lucky Cement (EPS Rs14.2 and DPS Rs4.0) however APL results (EPS Rs53.5 and DPS Rs25) surprised the market negatively. Concerns on politically directed lending by National Bank of Pakistan (NBP) triggered selling pressure in the stock that shed 4.7 per cent of its value, despite support by value hunters towards the end of the week.

&#8220;The upcoming week would witness release of some blue chip results such as MCB, PSO, Hubco and OGDC. We believe, together with the decision of the IMF board meeting, these results would set the tone for the market next week,&#8221; added Qamar.

Rise in international oil prices near to $76 in London trade, rebound in rupee fall & continuing foreign interest in the market played a catalyst role in positive activity, added Ahsan Mehanti at Shahzad Chamdia Securities.

Dreamworld, Royal Bank, PICT, Allied Rental Modaraba and Standard Chartered Bank were major gainers while PIA, WorldCall Telecom, Nakshbandi Industries, Pakistan Services and National Bank were major losers at the KSE this week, according to KASB.

Movement in Weekly Volume Leaders

Symbols Opening on Close on Difference 

Monday (Rs) Friday (Rs) (Rs)

Adamjee Ins. 104.18 102.84 -1.34

AH Securities 28.22 30.47 2.25

Azgard Nine 24.82 26.04 1.22

DGK Cement 36.35 38.89 2.54

Fauji Cement 8.42 8.42 0

JS Company 24.69 24.98 0.29

Lucky Cement 73.16 77.02 3.86

National Bank 68.95 63.32 -5.63

Nishat Mills 40.12 42.35 2.23

O.G.D.C 86.94 90.18 3.24

P.T.C.L 17.16 17.61 0.45

Pak Oilfields 164.12 168.44 4.32


----------



## BATMAN

Corruption eats up Rs195bn in Pakistan 

Tuesday, August 11, 2009
By Mansoor Ahmad

LAHORE: Corruption level has remained high in Pakistan despite some *improvements made in 1997 and 1998*, the year when transparency hit its highest levels. Earlier *in 1996, Transparency International declared Pakistan the second most corrupt country in the world.*
Though it is no more the most corrupt nation in the world, it remains one of the most corrupt. Corruption in Pakistan has been viewed by many global monitoring agencies with grave concern.

The World Bank, in its latest report, says that *corruption is largely associated with business-government interface* and reveals that the menace is more widespread in Pakistan as compared to other countries.

Referring to a survey conducted for preparing a draft report, the Bank says results show that *perceptions about corruption in Pakistan are based on actual experiences with payment of bribes *by investing firms. It reveals that *firms making investment have to pay bribes* even to get water, telephone and electricity connections.

The National Corruption Perception Survey 2009, conducted by the Pakistan chapter of Transparency International, indicates that *overall corruption increased from Rs45 billion in 2002 to Rs195 billion in 2009*. Police and Power maintained their ranking as the top two most corrupt sectors in the country.

According to US-based Heritage Foundation, corruption is perceived pervasive in Pakistan. *Corruption among executive and legislative branch officials is viewed as widespread*. The Foundation in its Economic Freedom Index 2009 labeled corruption as the most repressive factor in economic freedom.

The Corruption Perception Index of Transparency International is given weight by all global agencies like the World Bank, Heritage Foundation and the World Economic Forum. *When Pakistan was declared the second most corrupt country in the world by TI in 1996, it caused uproar in the country which created some awareness of corruption and measures were taken to improve governance.*

The transparency score of the country improved from one out of full score of 10 in 1996 to 2.53 in 1997. The score improved further to 2.7 in 1998, which proved the highest level in the following decade.

During the much-trumpeted period of better governance under Musharraf, the highest transparency score achieved by the country was 2.6 in 2002. 

Thereafter, the score declined to 2.1 in 2004 and 2005. It, however, improved to 2.5 in 2008. Governance experts point out that even at transparency score of 2.7, Pakistan remained a highly corrupt country as non-transparency or corruption was 73 per cent. At current transparency score of 2.5, corruption stands at 75 per cent.

This is pathetic, said senior economist Naveed Anwar Khan. In other words, he said it means that on every Rs100 we spend on development, almost Rs75 are lost in corruption. If corruption is curbed we will need one-fourth of our development budget for the current annual development programme.

*He said the transparency score of India and Pakistan was at almost the same level in 2002. However, India improved governance by 30 per cent to attain a score of 3.4 in 2008 while China which was at Pakistans level in 1997 improved its score to 3.6.*
*That, he added, explained the great leap the economies of these two countries had taken compared with the decline in Pakistan*. He said *corruption during the last 12 months had increased substantially which would be reflected in the Corruption Perception Index of TI for 2009.*


----------



## Spring Onion

*MCB Bank to Acquire RBS Pakistan for $87 Million *


By Naween A. Mangi

Aug. 12 (Bloomberg) -- MCB Bank Ltd., Pakistans biggest lender by market value, agreed to acquire Royal Bank of Scotland Group Plcs Pakistan unit for about $87 million to increase branches and its expertise in financial transactions.

MCB Bank will buy 1.7 billion shares, or a 99.4 percent stake, at 4.22 rupees apiece before making an offer for the remainder, the company said in a statement to the Karachi Stock Exchange today.

The assets will help MCB tap growth in a nation that forecasts an economic revival for the fiscal year that started July 1. Pakistans economy may expand more than 6 percent annually on average over the next five years, Shaukat Tarin, adviser to Prime Minister Syed Yousaf Raza Gilani, said in March.

MCB has been wanting to get more aggressive in consumer banking; this will allow them to do that, said Raza Jafri, an analyst at AKD Securities Ltd. in Karachi. RBS sold at distressed multiples because it wanted to get out.

RBS, based in Edinburgh, is selling or shutting businesses in two-thirds of the 54 countries in which it operates after posting the biggest loss in British corporate history last year. Australia & New Zealand Banking Group Ltd. agreed to buy its businesses in countries including Singapore on Aug. 4.

MCB Banks shares, up 62 percent this year, climbed 2.4 percent to 175.75 rupees at 10:38 a.m. on the Karachi Stock Exchange. RBS Pakistan, which has gained 35 percent during the past month, rose 5 percent, the daily limit, to 22.10 rupees.

Internal Funds

Bank of America Corp.s Merrill Lynch and KASB Securities Ltd. advised MCB on the transaction. Morgan Stanley advised RBS.

The transaction will be through internally generated resources, MCB said, without providing details.

The purchase of RBS Pakistan, which has 75 branches in 24 cities, will expand MCBs network of outlets to 1,139, according to the statement. RBS had assets worth 108 billion rupees ($1.3 billion) as of Dec., 31, 2008.

As a result of this transaction, I am confident that MCBs position has been strengthened to deliver on our growth plans, Chairman Mian Muhammad Mansha said in the statement.

Pakistans JS Bank Ltd. and Egypts Orascom Telecom Holding SAE were also interested in buying RBS Pakistan, according to statements to the stock exchange.

AKDs Jafri estimated MCB may close as many as 15 RBS branches, which overlap with existing MCB outlets. He also forecast job cuts at RBS Pakistan, saying MCB has an average employee-to-branch ratio of 10, while for RBS it is 20.

There have been eight acquisitions of Pakistani banks since 2002, with the biggest being Standard Chartered Plcs purchase of Union Bank Ltd. for $487 million in September 2006.

MCB Bank said this week that second-quarter profit rose 1.6 percent to 3.63 billion rupees, or 5.24 rupees a share, from 3.56 billion rupees, or 5.16 rupees, a year earlier.


----------



## Spring Onion

*Pakistan&#8217;s Trade Deficit Narrows 31.1&#37; to $1.15 Billion in July*


By Farhan Sharif

Aug. 11 (Bloomberg) -- Pakistan&#8217;s trade deficit narrowed by 31.1 percent in July as imports fell faster than exports.

The trade gap narrowed to $1.15 billion in the first month of the new fiscal year, from $1.67 billion a year ago, according to data posted on the Web site of the Federal Bureau of Statistics in Islamabad.

Overseas sales fell 20.8 percent to $1.49 billion, while imports fell 25.6 percent to $2.64 billion, according to the data.

Pakistan is seeking to boost exports to sustain growth in a country where the World Bank estimates two-thirds of the population of 160 million people survive on less than $2 a day.

Pakistan&#8217;s trade deficit narrowed 18.5 percent to $17 billion in the fiscal year ended June 30, from $20.7 billion in the previous 12 months, according to the statistics agency. Exports fell 6.7 percent to $17.8 billion and imports dropped 12.9 percent to $34.8 billion.


----------



## Spring Onion

*25 billion textile export target for five years set*: policy likely to be announced today 
TAHIR AMIN 
ISLAMABAD (August 12 2009): The government is all set to announce the first-ever textile policy on Wednesday (today) with export target of $25 billion for the next five years after its approval at the special meeting of the Cabinet to be chaired by Prime Minister, Yousuf Raza Gilani.

The textile policy would introduce a technology support fund through which mark-up subsidy on loans for the import of capital goods would be given to textile industry. Other initiatives would also be presented to the Cabinet and their approval would be sought, official sources disclosed on Tuesday.

Textile Investment Support Fund of Rs 40 billion had already been announced in the Budget 2009-10, of which 67 percent would be spent on textile and clothing industry for consolidation and value addition of the sector. Besides setting up of textile and garment cities, training institutes for human resource development would also be funded. Furthermore, the policy would also stress on utilities and setting up of labs and create human resource fund.

New policy measures are taken to diversify products and markets to enable exporters to move out of traditional markets and capture new ones. The Ministry of Textile (MINTEX) has proposed duty free import of raw materials, which are used in the manufacturing of special textile products, in the textile policy.

Sources said, "The term "Technical textile raw materials" covers items like fabrics used in the highly processed form. For example such materials are used in the manufacturing of aircraft seats." Sharing salient features of the new textile policy, the sources said.

"The major thrust of the Textile Policy will be to enhance domestic capabilities and capacities for efficient use of resources through skill development, technology up-gradation and provision of infrastructural facilities. Measures are also envisaged for diversification of fiber usage and mix."

In the new policy, it is proposed to hire foreign consultants to initiate technical textile projects and also for the training of manpower. Technical textile laboratory would also be established under the research centre. More than 80 percent of industry is working in unorganised sector and with the increase in global competition it has become the requirement of the day to operate in economies of scale and develop strategic partnerships for long term benefits.

The policy will focus on establishment of linkages among various textile sub-sectors, both upstream and downstream, by ensuring their healthy and harmonious development. Various integrated and related plans and programmes to be undertaken for the development of spinning, weaving knitting, hosiery, dyeing, finishing and the stitching industry on priority basis.

In the policy one of the prime objectives is to establish research centres/councils for every sector of the textile value chain. The councils will carry out product development, design development, cost effective operations, best operation practices and testing of the products. These research centres must be accredited with international research organisations so that there results can be accepted in international market.

To develop sense of ownership in the project and ensure smooth operations, MINTEX has developed the strategy of public-private partnership. MINTEX needs to develop comprehensive plans to create awareness in the textile industry on specific issues relating to policies, management, markets, new products, operations, compliance, and branding and supply chain management. This task may be accomplished by conducting series of workshops and seminars and creating platforms for awareness dissemination in the said areas.

Special incentives will be given to the units working on 85-15 female-male workforce ratio to solve the issue. Separate training institutes will be developed all across the country for ladies to enhance their skills in industrial stitching, sewing and garment manufacturing. Women will also be facilitated in renting out areas in garment city projects.

Technical textile would be promoted by inviting the internationally recognised companies to start manufacturing technical textile products in Pakistan. Under the new policy, there is a plan to help create model garment factories, introduction of a new scheme whereby a textile park would be declared special economic zone, setting up of a weaving city and formation of a textile research and compliance organisation.

It also includes audit of processing industry for efficient and economical use of precious chemicals, setting up of state-of-the-art textile laboratory at NTU Faisalabad, horizontal and vertical integration to balance textile value chain, specialised garment training institute for women, one-window facility for provision of required infrastructure and standardisation of machinery and equipment.

MINTEX will highlight the areas which require multiple subsidies ie effluent treatment plants, testing machines and quality monitoring machines etc. About half of industrial stitching machines are installed in cottage industry and they are short of skills to prepare quality products and increase their efficiencies.

By making apparel house, MINTEX would synergize its efforts and also provide them the opportunity to excel in international market. The yield of spinning industry will increase, which will take this sector out of the current crisis. The proposed policy would cater for the short, medium and long-term measures to increase production of cotton, improve value-added products, productivity and competitiveness of the textile sector.


*Copyright Business Recorder, 2009*


----------



## Spring Onion

*$747 million record remittances received in July *
RECORDER REPORT 
KARACHI (August 12 2009): Workers remittances sent by overseas Pakistanis surged by 19.13 percent to a record $747 million during the first month of current fiscal year as compared to same period last fiscal year. Pakistani workers remitted a record amount of $747.22 million in July 2009 against $627.21 million in the same month of the last fiscal year (July 2008), showing a jump of $120.01 million.

The amount of $747.22 million includes $0.14 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). The previous highest amount remitted in a single month by Pakistani workers was recorded in March 2009, when an amount of $739.43 million was received. The inflow of remittances into Pakistan from almost all the countries of the world increased last month as compared to July 2008.

According to the break-up, remittances from UAE, Saudi Arabia, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $159.32 million, $151.17 million, $150.13 million, $107.63 million, $71.23 million and $26.04 million, respectively as compared to the corresponding receipts from the respective countries during July 2008, ie $100.10 million, $133.26 million, $168.39 million, $105.31 million, $42.04 million and $17.07 million.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during July 2009 amounted to $81.56 million as compared to $60.99 million during July 2008. The country received the highest-ever amount of over $7.811 billion as workers' remittances in the recently concluded 2008-09 fiscal year, beating the previous record of $6.451 billion received in 2007-08.


Copyright Business Recorder, 2009



Business Recorder [Pakistan's First Financial Daily]


----------



## Jamshed

ISLAMABAD: MOL Pakistan Oil and Gas Company B.V as an operator of Tal block announced on Monday discovery of oil and gas reserves of around 12 mmcfd gas and 430 bbls per day condensate. 

According to a company announcement, MOL Pakistan Oil and Gas Company B.V as an Operator of Tal block along with joint venture partners Government Holdings (Private) Limited, Oil and Gas Development Company Limited, Pakistan Petroleum Limited and Pakistan Oilfields Limited announced that that hydrocarbons have been encountered in its exploratory well, Maramzai-1, which is being drilled in Tal block, located in NWFP Province of Pakistan. 

In the Lockhart Formation, upper 75 meters of the drilled section produced around 12 mmcfd gas and 430 bbls per day condensate. 

The discovery is made in the uppermost reservoir section of the well and drilling is continued to penetrate and test the lower potentially prospective zones. 

The full extent of discovery from the well will be known once the well reaches the planned total depth during next 45 days.


Daily Times - Leading News Resource of Pakistan


----------



## glomex

Pakistan&#8217;s export share in world trade declines to 0.13&#37;

Daily Times - Leading News Resource of Pakistan

KARACHI: The global share of Pakistan in export market is 0.13 percent, which was 0.21 percent in 1999. The exports dropped from $19.1 billion in 2007-08 to $17.8 billion in 2008-09, imports dropped from $40.4 billion in 2007-08 to $34.9 bill in 2008-09, according to the Federal Bureau of Statistics. 

Agha Saiddain, Chairman Pakistan Tanners Association, said textile exports which are 54 percent of our total exports dropped from $10.6 billion to $9.60 billion, but alarming thing is that export of non-textile manufactured items has gone down from an already low figure of $5.83 billion in 2007-08 to $3.12 billion in 2008-09. Agha said on the other hand non-textile exports have gone up in all our competing countries specially in Asia, including China, India, Malaysia, etc.

It would have been better to announce a trade policy for the year 2009-10 with short-term measure with a five-year strategic policy framework. Short-term measures are required to face the challenges of global recession and abnormal security situation of Pakistan. The trade policy is silent about the road map as how to achieve these objectives and the major causes of back drop of trade policy are identified by the MOC as energy crises, low productivity and poor innovation, low value addition, lack of foreign investment, tax laws, lack of product and market diversification, he added. 

He said, these terms look very impressive but what practical measures have been suggested to overcome these weaknesses are unidentified&#8221;. To overcome these weakness the government has come up with new creative idea under its name STPF (strategic trade policy framework) with fundamental principles laid down as growth with equity, creating opportunities for gainful employment, sound macro-economic frame work for poverty eradication, environmental protection, HR development, targeting private sector as engine of growth, focus on small agriculture. The government has been working on strategies of various industries such as leather industry where SWOG (strategy working group) has already finalised their strategy paper and recommendations forwarded to the authorities.

The leather goods export registered a decline of 30 percent during 2008-09, while India witnessed 27 percent increase in six months of 2009. The Ministry of Production, SMEDA and the consultants J E Austin have been discussing leather strategy with major players of leather sector for last two years, the trade policy should have moved forward from discussion to implementation.

The measures to be taken and claim that competitiveness of Pakistan will be improved from 101 to 75 are not clear in the trade policy.

He said the weak currency has direct impact on imports, which accelerate inflation in the country, and markup rate goes up. This is a vicious circle and only remedy is to boost exports through export friendly policies and monitor imports by discouraging import of luxury items having substitute in the country. At present our retail shops are filled with imported cosmetics, shoes, juices, electronics, toys, clothing, food and other non-essential items.


----------



## Hyde

*Pakistan's foreign exchange reserves rise to $11.85 billion ​*
KARACHI (August 14 2009): The country's foreign exchange reserves rose by $130 million in the week that ended on August 8 to $11.85 billion from $11.72 billion the previous week, the central bank said on Thursday.

The State Bank of Pakistan's reserves rose to $8.36 billion from $8.31 billion a week earlier, while reserves held by commercial banks also rose to $3.49 billion from the previous week's $3.41 billion, the central bank said in a statement.


----------



## Hyde

*Internet in Pakistan to hit 22 mln by 2013​*
ISLAMABAD: The Internet usage in Pakistan is likely to see three digit growth rate in next couple of years as it is being predicted that internet base would touch 22 million mark by year 2013.

Out of total base, 4.3 million users would be using broadband Internet.

According to officials on Friday, it was told that Pakistan Telecommunication Authority (PTA) was working in collaboration with educational institutes to get the new generation familiar with internet.

Internet is going to be the next growing industry in Pakistan specifically in a scenario when Universal Service Fund (USF) is putting massive efforts to take Internet to rural areas of the country.

The sources said there is still to cover a long distance, tele-density is merely 11 percent but experts are expecting good because there were only 133,000 Internet users back in 2000 and now around 18 million in Pakistan.


----------



## white_pawn

*City Nazim launches over 26 development projects ​*
KARACHI (August 18 2009): City Nazim Syed Mustafa Kamal on Sunday inaugurated and launched more than 26 development projects in various areas of city including 24 projects under Lines Area Development Package. On a very busy day, he inaugurated a cricket ground in Sector 11-E North Karachi and a family park in KBR Society of North Nazimabad. At night he inaugurated and laid foundation stone of more than 24 projects under Lines Area Development Package having a total cost of Rs 160 million.

The projects included Khurshid Begum Memorial Women Computer Centre-II at UC 9 of Jamshed Town, Shahzadi Afza Altaf Hussain Family Park and Asharam for Hindu Community in UC8 Jamshed Town. City Nazim also laid the foundation stone of 10 under construction development projects in UC8 Jamshed Town for which 70 percent of work was already completed.

These includes construction of road from Qasai Chowk to Tauheed Chowk, road from Tauheed Chowk to Preedy Street, road from Aik Minar Masjid to Qasai Chowk, road from 602 Military Workshop to UC Office, road from 40 Ground to Tanga Stand, CC Flooring of internal streets, laying of sewerage lines and other projects.-PR

Reactions: Like Like:
1


----------



## white_pawn

*Moody's ups Pakistan rating from negative to stable ​* Updated at: 1429 PST, Monday, August 17, 2009

LONDON: Moody's Investors Service said on Monday it has raised its rating outlook for Pakistan to stable from negative after the country received a bigger loan from the International Monetary Fund.

"The stable outlook was prompted by the recent augmentation of Pakistan's IMF program by $3.2 billion to more than $11 billion, and several ongoing policy and structural reforms" said Aninda Mitra, Moody's analyst for Pakistan, in a statement.

Moody's has a B3 rating on Pakistan's foreign and local currency debt.

Reactions: Like Like:
1


----------



## white_pawn

*Foreign investment continues at KSE ​* Updated at: 1838 PST, Saturday, August 15, 2009
KARACHI: Foreign investors continued to buy shares at the local capital market in this week as well. 

The foreign investors, in the current week, made a net purchase of 18.4 million dollars worth of shares. According to KSE figures, the foreign investors took positions in shares amounting to 30 million dollars and out of which off-loaded shares worth 12 millions. Hence, they retained positions in stocks worth 18.4 millions.

Foreign investors continued to invest in the stock market for the sixth consecutive week.

Reactions: Like Like:
1


----------



## Ghazy

At last some FDI is back in Pakistan . Good news for. May be death of Baitullah Mehsud is the reason.


----------



## white_pawn

*Cement exports register big increase in July​*
KARACHI: Cement export made a sudden jump during July, the first month of the current fiscal year (2009-10), to 1.160 million tons from 0.838 million tons recorded during June 2009.

According to exporters, there had been around one million tons of exports for the last two years, but during July, the figure crossed the mark, indicating revival of cement demand in the world market.

However, cement export in June 2009 temporarily declined as India stopped providing rail wagons. 

According to an understanding, both the countries were to provide train facility on the basis of inter-change which means one rail would go from Pakistan and the other would come from India to carry cement across Wagah border.

Cement export to India by sea route declined to 5,795 tons, but picked up in July and stood at 21,558 tons.

Similarly, export of cement to India by train during June was 38,560 tons but increased to 49,104 tons in July 2009.

Despite the fact that there was some decline in cement consumption by construction industry in India affected by slow economic activity, the on-going construction of Commonwealth games complex somewhat sustained demand of cement, exporters said.

But strong demand for Pakistani cement in Africa and Middle East helped increase exports. 

Figures disclosed that around 0.742 million tons of cement was exported during July to African countries, like Sudan, Tanzania and Ethiopia, whereas exports during June 2009 stood lower at 0.504 million tons.

Afghan market has almost become a traditional market for Pakistani cement which started from 2001. During July, around 0.347 million tons of cement was exported to Afghanistan and around 0.289 million tons in June 2009. 

Cement exporters have, however, lodged complaints with the government over the issue of two-way trucking. 

Exporters said India was not allowing Pakistani trucks to enter their border area whereas on average around 100 trucks from India move into Pakistan daily with goods, such as onion, potato, vegetables and other goods.

The issue of two-way trucking was repeatedly taken up by the private sector with Indian officials and at the private sector trade bodies level, but standard reply had been security reasons from the Indian side.

Amjad Rafi, former KCCI president and a leading cement exporter to India, said if it was security reason, how come train loaded with Pakistani cement moves into their border area.

He alleged it is simply a non-trade barrier case which the government of Pakistan should take up at the highest level with India.

Cement is a non-traditional item. Its export to India began in July 2007. However, the government or for that matter the Trade Development Authority of Pakistan (TDAP) is not responding.

The new trade policy of 2009-10 did announce inland freight subsidy on cement, but so far no action had been taken to implement it, he said. 

Mr Rafi said cement exports to India would be there for another year because the Indian industry was expanding their capacity rapidly. 

He further stated that Pakistan Railways was also not cooperating and was making high charges of Rs600 per ton for a small distance of 30 km from Lahore to the border area. 

The railways, he said, was also not giving sufficient number of wagons and last year only 50,000 tons were carried by them, whereas the industry needs 150,000 tons.

DAWN.COM | Business | Cement exports register big increase in July


----------



## white_pawn

*Some relief in sight for Swat businessmen *​
PESHAWAR: The federal government is considering writing off the loans extended to the business community of the militancy-affected Swat region, besides giving relief in interest rates to businessmen of other parts of the Frontier province. 
These incentives are part of a package the federal government is preparing, which will be announced in a couple of weeks, Senator Ilyas Ahmad Bilour told Dawn here on Monday.

Citing his recent meeting with Federal Finance Minister Shaukat Tarin, Mr Bilour said the centre had realised the problems faced by NWFP businessmen. He said the Finance Division was working out a relief package for the business people of the province, particularly of Swat.

The proposed package would include writing off loans of Swat businessmen, while the relief for businessmen of other areas of the NWFP would be either elimination of interest on bank loans for two years or it would be fixed at five per cent, said Mr Bilour, quoting the minister as saying.

An official told Dawn that different departments and agencies of the federal government were working on a development plan for the Malakand region. 

The proposed plan includes schemes for the social sector as well as initiatives for industrial and economic revival. 

Apart from that, the official said, the Frontier government has also worked out a five-year Comprehensive Development Strategy for Malakand that will cost Rs193 billion. The government plans to present the proposed strategy in the forthcoming meeting of Friends of Democratic Pakistan, scheduled for Aug 25 in Istanbul. 

The federal government, according to the official, has also endorsed the demand of declaring NWFP as a war-affected province. 

The Sarhad Chamber of Commerce and Industry has been demanding to declare the NWFP as a war-affected province since long in the wake of damages caused by militancy.

Mr Bilour said the war on terror had affected the economy and businesses of the Frontier province the most and that was why the Senates Standing Committee on Finance had also demanded declaring NWFP as a war-hit province. 

The finance minister has agreed to the SCCI demand and assured of unveiling a special package for the province in Ramazan, he said.

He hoped that the proposed package would help bring the local industries again on the path of progress and would consequently boost up the provincial economy.

DAWN.COM | Provinces | Some relief in sight for Swat businessmen

Reactions: Like Like:
1


----------



## white_pawn

*Current account deficit dips by 49 percent in July ​*RIZWAN BHATTI 
KARACHI (August 20 2009): The country posted $606 million current account deficit during July 2009--first month of the current fiscal year 2009-10. The State Bank of Pakistan on Wednesday said that the country's current account deficit declined by 49 percent during the first month of current fiscal year mainly due to positive measures taken by the government to cut the rising current account deficit.

With this decrease, the country's current account deficit narrowed down to 606 million dollars in July 2009 as compared 1.182 billion dollars during same period of 2008-09, depicting a dip of 576 million dollars. "Decrease in current account deficit has been contributed by a large decline in trade, services and income deficit, besides rising inflows of services exports," analysts said.

They added that government measure to arrest the rising current account deficit now witnessed positive impact on the balance of payments. "The improving current account situation also indicates overall economic strength, and we are expecting further stability in near future," they said.

Services deficit decline by 35 percent during July 2009 to 307 million dollars with 237 million dollars exports and 544 million dollars imports in July of the current fiscal year as compared to 476 million dollars--with 230 million dollars exports and 706 million dollars imports--in July of last fiscal year. The country's overall goods imports stood at 2.795 billion dollars and exports at 1.546 billion dollars with a trade deficit of 1.249 billion dollars during July 2009.

Similarly, income deficit declined by 35 percent to 223 million dollars with 269 million dollars outflows and 46 million dollars inflows during the first month of the current fiscal year. Overall deficit including goods, services and income stood at 1.779 billion dollars against the current account transfers of 1.176 billion dollars during the first months of current fiscal year. It may be mentioned here that the country's current account deficit had shrunk by 36 percent, to 8.8 billion dollars, in last fiscal year 2009 mainly due to higher home remittances and sharp decline in the trade deficit.


----------



## white_pawn

*'War on terror causing $6 billion losses in exports annually' ​*RECORDER REPORT 
KARACHI (August 20 2009): Pakistan is suffering $6 billion export losses annually due to the ongoing war against terrorism, said the Chief Executive Officer of Trade Development Authority of Pakistan (TDAP), Syed Mohibullah Shah, here on Wednesday. Speaking at the 5th meeting of intellectual property rights subcommittee of Karachi Chamber of Commerce and Industry, he said that Pakistan is not only taking part in the war against terrorism for its own safely but also for safety and security of the world.

He urged all countries of the world in general and European countries in particular to provide market access to Pakistan. He also advised business community to develop its own website and display its products to boost Pakistan's exports. "Websites are accessible from anywhere in the world and it can help introducing more and more products of Pakistan in world market. The TDAP chief also advised business community to concentrate on developing brand names.

"Pakistan can easily fetch three times more export earnings from the same volume of exports by introducing band name, maintain high quality of products. Prices are reasonable and no compromise on quantity." Citing example of Bangladesh, he said that Bangladesh is getting 100 percent more unit price of readymade garments than Pakistan due to high quality, brand name, etc.

Warning Pakistani business community, Mohib said that Pakistan may face difficult times at home market and exports markets if they compromised on quality, price and quantity. "The world is now a global village and buyers prefer to buy from where they get better quality goods and at reasonable price. Tariff barriers have already gone," he added. He said that TDAP would organise an exhibition in collaboration of KCCI in Vancouver next year.


----------



## white_pawn

*PM forms Business Persons Council ​*
LAHORE: Prime Minister Yousuf Raza Gilani has constituted a 53-member Business Persons Council to develop a strategy for the commerce and trade sector.



Federal Minister for Industries and Production Manzoor Ahmad Wattoo told APP on Wednesday that the president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), office bearers of its affiliated chambers, trade bodies, including key players of business community, veteran trade leaders from across the country have been given representation in the newly established council headed by the federal finance minister.


Elaborating on the main objective of the council Mian Wattoo said that the prime minister wanted to take private sector into confidence in policy making process to make it more viable in the larger interest of the country. 


He said the council would help a lot to establish a close liaison and cordial relations for promoting and encouraging public-private sector partnership, besides addressing the economic issues confronting the country in the wake of global recession.


Mian Wattoo said that a strategy for boosting industrial production and exports will also be worked out in consultation with the council members. Shaukat Tarin will chair the first meeting of the council on August 21.


Prominent council members among others, include Sultan Ahmad Chawla, president FPCCI, Muhammad Adrees, Hameed Akhtar, Muhammad Mansha Churra, Tariq Sayeed, Iftikahr Ali Malik, S. M. Munir, Sardar Muhammad Ali Jogezi, Haji Ghulam Ali, Zubair Ahmad Malik, Mian Misbahur Rehman, Anjum Nisar, Sikandar Mustafa Khan, Zubair M Tufail and Muhammad Farooq Dadabhoy.


Mr Wattoo said that his ministry would also facilitate the council members to help frame better future policies to strengthen the national economy. He said the government always attached great importance to business community and will solve their genuine problems on priority basis.


----------



## white_pawn

*Pakistan very attractive country for investment: NBP President ​* 
KARACHI, Aug 20 (APP): President National Bank of Pakistan (NBP) Syed Ali Raza said Pakistan is a very attractive country for investment in the region and its future is very bright. Investors from all over the world show their interest in making investment here for lucrative business opportunities which is very encouraging, he said while speaking at Karachi Chamber of Commerce and Industry (KCCI). 
He said Pakistan has a very strong base of human resources and they can build it further to meet the requirements of international market. 

He underlined the need for individual and collective efforts to make the country strong on economic and social fronts. 

President KCCI Anjum Nisar briefed the NBP President about the problems related to banks facing the business community.

Reactions: Like Like:
1


----------



## white_pawn

*E-banking transactions grow 7.8% to Rs 3.9 tln in last Qtr of FY09​* 
KARACHI, Aug 20 (APP): Electronic banking (e-banking) and branchless banking transactions continued to show growth momentum as both the volume and value of these transactions exhibited a rise in the country trend during the last quarter of the fiscal year (FY2008-09). According to the Fourth Quarterly Report on Branchless Banking/ Electronic Banking, the volume and value of e-banking/ branchless banking transactions in the country reached 44.5 million and Rs 3.9 trillion (tln) respectively showing an increase of 11.1 percent in number and 7.8 percent in value as compared to 6.5 percent increase in number and 11.4 percent increase in value in the previous quarter of FY09 (Jan-March 2009), said a SBP statement here on Wednesday. 
During the fourth quarter (April-June) of FY09, the volume and value of online banking transactions in the country reached at 13.7 million and Rs 3.7 trillion respectively showing a growth of 10.8 percent in numbers and 7.4 percent increase in value as compared to 14.8 percent increase in numbers and 11.7 percent increase in value in the previous quarter. 

According to the Report, during the fourth quarter, the volume and value of ATM transactions in the country reached 25.2 million and Rs 189.0 billion respectively showing a growth of 12 percent in numbers and 12.2 percent increase in value as compared to 5.2 percent increase in numbers and 10.2 percent increase in value in the third quarter. 

During the period under review, the volume and value of internet transactions in the country recorded at 0.6 million and Rs 22.2 billion respectively, showing an increase of 15.4 percent in numbers and 35.7 percent increase in value as compared to 2.8 percent decline in numbers and 2.1 percent increase in value in the previous quarter. Whereas, the volume and value of mobile transactions in the country recorded at 21,733 and Rs 4.9 million respectively showing an increase of 40.6 percent in numbers and 48.2 percent increase in value as compared to 12.1 percent decline in numbers and 15.4 percent decline in value in the previous quarter. 

According to the Report, the total quantity of ATM machines during April-June, 2009 period reached 3,999 registering a growth of 5.7 percent as compared to 7.4 percent increase in the previous quarter. The volume of Real Time Online Branches (RTOB) during the quarter reached at 6,040 and recorded a growth of 1.3 percent as compared to 1.8 percent increase recorded in the previous quarter. The total quantity of POS terminal reached at 49,715 showing an increase of 2.7 percent in number as compared to 1.1 percent decline in previous quarter. 

It said that total quantity of cards (debit / credit /ATM only) in circulation during fourth quarter of FY09 reached at 8.9 million which shows an increase of 6.6 percent as compared to 3.1 percent decline in the previous quarter. The quantity of credit cards has decreased by 0.6 percent as compared to 6.2 percent decrease in the previous quarter. The quantity of debit cards has increased by 9.6 percent as compared to 2.5 percent decline in previous quarter and stood at 6.4 million, it added. 

The Report pointed out that paper-based instrument during the fourth quarter of FY09 witnessed a growth of 4.8 percent to 85.6 million in numbers compared with 1.4 percent decline in the previous quarter (81.7 million). The value of transactions decreased by 6.1 percent to Rs 33.1 trillion as against 1.6 percent increase or Rs 35.3 trillion recorded during third quarter of FY09. 

It said that during the last six quarters the transition from manual (paper-based) banking to e-banking has been gradual, yet consistent, in terms of both volume and value of transactions. The composition (in percentage) of electronic transactions increased to 34.2 percent of the total number of transactions as compared to 32.9 percent recorded last quarter. In terms of value, the same increased by 10.5 percent as compared to 9.3 percent rise recorded last quarter.


----------



## Hyde

*100,000 Pakistani workers in Malaysia by next year​*
KARACHI (August 29 2009): Pakistan is set to join Indonesia, Bangladesh and Myanmar as a primary source of foreign labour for Malaysia, with a three-fold increase in workers, taking their numbers to 100,000 by December next year. This was reported by Balan Mosses, the Deputy Chief News Editor of Malaysia's second highly circulated English language news papers the "New Strait Times' in a four column story published prominently on Thursday.

While quoting High Commissioner for Pakistan Lieutenant General Tahir Mahmud Qazi (Retd). Balan Moses, who is the top most writer and columnist of Malaysia, conduced an exclusive interview of the High Commissioner on August 24 and mainly focused on bilateral relations with Malaysia, the trade investment and business opportunities available in Pakistan especially after signing of Malaysia Pakistan Comprehensive Economic Co-operation Agreement (MPCEPA) in 2007, and opportunities for Pakistani workforce in Malaysia.

The High Commissioner told Balam that inflow of Pakistan's skilled and semi-skilled workers would contribute in Malaysia progress and prosperity, especially after the expected boom in construction activities in Malaysia as an aftermath of creation of various corridors of development in the country including Iskandar Development Region in Johor, Malaysia.

He said all necessary steps would be taken to increase the Pakistani workers to 100,000) from the existing 30,000 by December next year to assist in the development of Malaysia's various newly announced construction projects. Tahir Qazi said a memorandum of understanding (MoU) had already been signed between the two countries in 2005, wherein Pakistan had been declared as one of the source country for Malaysia for recruiting workers.

The High Commission was also liasing actively with the Construction Industry Development Board of Malaysia on the anticipated need for Pakistani workers in the short-and long-term. Giving the existing status of Pakistan labour force in Malaysia, he said there were about 30,000 Pakistani workers who were mostly employed in construction industry.

They had a proven track record of being hardworking and dependable. They had made a name for themselves in the Middle East as well, due to their ability to adapt to local conditions besides their high level of skills and expertise in the building industry. The High Commissioner said Pakistani workers were doing very well in Malaysia, too, as they had been able to work well with local employers.


----------



## ejaz007

*Technical talks on Pak-Iran gas pipeline project kick off *
Tuesday, September 01, 2009
By Khalid Mustafa

ISLAMABAD: Pakistan and Iran on Monday initiated technical talks on draft of the operational agreement under the IP gas pipeline project.

In the marathon six-hour long meeting, experts from both sides deliberated upon each word and clause of the proposed operational agreement draft, a reliable source, who was part of the talks, told The News. He, however, refused to divulge any further details, saying that talks would continue for another three days or so, adding that nothing was final as yet and therefore could not be shared with the media.

The five-member Iranian team was led by Irans Director Gas Exports, while the six-member Pakistan team was headed by Managing Director Inter State Gas System Hasan Nawab. In the coming rounds of these negotiations, Pakistan and Iran will also hold talks on Conditions Precedent (CPs), which are prerequisites before making the gas sales purchase agreement effective that both Islamabad and Tehran have already signed in Istanbul.

Under the gas sales purchase deal, Pakistan is bound to submit some conditions precedent before September 5, otherwise the deal could elapse. However, the date for finalising the conditions precedent can be extended, one time only, through mutual agreement. Under the CPs, Pakistan will have to submit a Performance Guarantee and a Comfort Letter.

Hasan Nawab, MD ISGS, who is the focal person on all issues pertaining to IP gas pipeline when contacted said the experts of both the sides had discussed the standards and codes of the engineering that would be utilised in constructing the IP gas pipeline. The standards and codes of the engineering would be the same for the whole IP gas line.

Although the pipeline will be constructed under the segmented approach under which Iran will construct the pipeline in its area and Pakistan will construct in its own area from Iran border to Nawab Shah, but factually the pipeline will be the same from Paras field (Iran) to Nawab Shah (Pakistan).

He said such meetings at operational level would continue and that officials of both the countries would meet again after Eidul Fitr. On the issue of comfort letter, the source said as per this letter, the government of Pakistan would have to allow a third country to import gas through IP pipeline in the event of any such country joining the project in the future. Such permission, however, will be subject to the gas tariff and transit fee that would be worked out at that times best practices.

Technical talks on Pak-Iran gas pipeline project kick off


----------



## ejaz007

*OGDCL discovers oil and gas in Nashpa block *
Staff Report

KARACHI: Oil & Gas Development Company (OGDC) has made an oil & gas discovery in Nashpa Block at Nashpa-1 well in NWFP Province. The well was spuded on June 29, 2008 and drilled to the depth of 4384 meters.

A successful drill stem test was carried out which flowed at a rate of 3,000bbls/day of oil and 9.68mmcfd of gas at 32/64 choke size. The information was communicated to shareholders on Tuesday. This is the second discovery in the block. 

In September 2006, OGDC hit a major discovery at Mela-1 well. It may be recalled that Mela-1 was tested for 4,100bbls/day oil and 12mmcfd gas. The Block was granted to OGDC in 2002. As an operator in the block, OGDC held 56.45 percent(post-discovery) stake.

The block is situated in a highly prospective area, where Tal Block has already proved to be the largest discovery of the decade. Besides OGDC, PPL and GHPL also have non-operating post-discovery stakes of 26.05 percent and 17.5 percent, respectively.

OGDC is the heavyweight of local stock market and included in the blue chips that are dominated stocks. Company holds Rs.425 billion market capitalization and government has 85 percent of the stakes in the company. At the end of month of July,, OGDC announced financial results for the year ended June 30 2009, recording 25 percent growth in earnings to Rs.55.5 billion translating into earnings per share of Rs.12.91. Analysts had attributed the handsome growth in the companys earnings to increased gas production and improved wellhead gas prices.

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## ejaz007

*Zardari calls for reimbursement of outstanding $1.6bn CSF*

* Payment essential for ongoing military operation against Taliban 
* President emphasises early approval of Kerry-Lugar Bill

Staff Report

ISLAMABAD: President Asif Ali Zardari on Tuesday urged the United States to expedite reimbursement of the $1.6 billion worth outstanding payments in the Coalition Support Fund (CSF), an early passage of the Kerry-Lugar Bill and the legislation to set up reconstruction opportunity zones (RoZs) in the war-affected areas of Pakistan.

During a meeting with a three-member delegation of the US Senate, the president also sought repayment and assistance in the energy sector and the massive $2.5 billion plan undertaken for the rehabilitation and reconstruction of the internally displaced persons (IDPs).

Later, briefing reporters about the meeting between the US delegation and Zardari, Presidents spokesman Farhatullah Babar said the president sought personal intervention of the visiting senators in expediting the reimbursement process and also in the supply of the critically-required equipment, including helicopter gunships.

Interior Minister Rehman Malik, Minister of State for Foreign Affairs Malik Ahmad Khan, Secretary General Salman Farooqui, Foreign Secretary Salman Bashir, Senator Sughra Imam and Defence Secretary Lt Gen (r) Athar Ali were also present.

Importance: Babar quoted the president as saying that the payment of outstanding amounts in the support funds was important for security forces to continue the ongoing military operation against the Taliban.

Inordinate delays in the reimbursement of the CSF claims are not conducive for the continued fight against militancy, the presidents spokesman said. 

Zardari also emphasised the need for an early approval of the Kerry-Lugar Bill as well as the RoZ legislation.

The president said the RoZ legislation was very important for the national security and called for enhancement of the area as well as product coverage of the reconstruction opportunity zones.

Zardari had told the US senators that the security forces had cleared 94 percent of the area in Swat and a large number of the displaced population had already returned home, Babar said. 

He quoted the president as impressing upon the senators the need for ISAF and NATO forces in Afghanistan to ensure that there was no direct or indirect support to the militant factions from Afghanistan.

The president also asked for enhanced market access to the US and the EU.

Daily Times - Leading News Resource of Pakistan


----------



## Hyde

*China gave $1 billion to improve Pakistan's economy: envoy​*
ISLAMABAD (September 05 2009): Chinese Ambassador to Pakistan Lou Zhaohui has said that China has already given one billion dollars in two tranche to enhance Pakistan's foreign reserves and improve Pakistan's economy. *"Pakistan is the only country in the world that China has ever given such a huge amount on very low interest rate that is due to the nature of bilateral relations"*, the Chinese envoy said while talking to media here on Friday.

*President Asif Ali Zardari and his Chinese counterpart Hu Jintao are to meet in New York later this month on the sidelines of UN General Assembly*, he said, adding that their meeting will focus a wide range of regional and international issues, but the main emphasis would be on bilateral relations.

Zhaohui said that within the last one year President Zardari has twice met both the Chinese premier and the president. The interactions will further deepen the relations between the two countries, he added. *He deeply appreciated Pakistan's stance over July 5 incidents in Xinjiang province and said it was the only country in the world to have issued a statement in support of China.*

To a question, the ambassador *said that Pakistan's religious/political parties also supported China on the issue.* Zhaohui said *President Zardari during his first official visit to China last October had committed to visit China after every three months and each time he would visit a new province of the country.*

"President Zardari has kept his promise and has so far visited his country thrice learning from Chinese model of development and holding interactions with various business leaders, economists and agriculturists," he added.

To a question about the protocol President Zardari was given in China, the ambassador said that no head of state is ever given such a protocol if he is on a working visit to cities other than Beijing. "This is rare. When dignitaries from other countries are there in Chinese provinces, they are received by an official of the Chinese foreign ministry. *No one outside Beijing gets protocol which President Zardari receives during his working visits,*" Zhaohui said.

He said although President Zardari was not on a state visit, but still he was received by vice premier and the foreign minister also met him in Guangzhou. Ambassador Lou Zhaohui also dwelt upon areas of Pakistan-China co-operation and other international and regional issues. *He said last year there were 3,000 Chinese engineers working in Pakistan on a number of projects, but this year their number has increased to 10,000 and the total projects they are working on are 120.*

Expressing satisfaction over the security that interior ministry is providing to Chinese diplomats and engineers, he said the embassy has a joint task force with Pakistan's interior ministry and have a 24 hours hotline. "*A number of foreigners left Pakistan, but we are committed to complete all the projects* on which Chinese are working," he said. To a question he said for *timely completion of Gawadar Port, China provided $300 million and was interested in its operating rights, which were given to Singapore Port Authority*. He said *China is also co-operating in Neelum Jhelum power project and in defence field his country has provided JF-17 fighter jets and handed over Frigate-22 to Pak Navy.*

The ambassador informed that an MoU between the two countries will be signed next week to launch Pakistan's satellite into space. He said unlike Pakistan, his country has a number of political issues with India including border issue and Dalai Lama. Zhaohui, however, stated that relations with India were improving and recent talks on border issues have been satisfactory and some Indian army officials have also visited China.

Reactions: Like Like:
1


----------



## Omar1984

*KSE-100 index breaches 9,000 pts for first time in &#8217;09 
​*
KARACHI: The benchmark KSE-100 index breached the psychological barrier of 9000 points on Firday, a phenomenon, which could only be witnessed 263 days back when the market was artificially held up by the placement of the floor.

The major force behind this upsurge in the bourse is the flocking of the offshore investors.

The buying frenzy that took the local bourse to new heights after the removal of floor from the market helped the market gain 461 points or 5.4 percent on weekly basis. 

Despite no positive triggers, flows from offshore investors have created a bull run, analysts pointed out. They believed that the local investors, who have been supporting the market after the last year price-floor triggered crisis, are the major sellers in the market

But the buying euphoria by the Foreign Investment Institutions (FIIs) is so strong in Pakistan that benchmark KSE Index gained 11 percent in last two weeks at a time when regional markets have not performed well. 

Mega inflows have been observed in Pakistan market that saw huge outflows at the beginning of the calendar year. In just two weeks, net buying of $110 million was seen in local bourses, according to NCCPL statistics. Last week $86 million net buying occurred. This brought down the net selling to date in 2009 to $98 million.

&#8220;It looks like that the risk-loving investors who have minted money in other markets are targeting under-performing Pakistani market whose paying ability has improved after the IMF additional funding. S&P has also endorsed this by upgrading Pakistan by one notch to B-, still six levels below investment grade,&#8221; Mohammad Sohail, Chief Executive Officer (CEO) Topline Securities observed in a research report. 

These huge flows have created a price impact because since last one year the depth of Pakistan market has been affected substantially due to absence of famous badla and due to the fact that big players have lost tonnes of money. 

Muniba Saeed, analyst at InvesCap said that despite other factors, these are the foreign investors are pulling the strings in the market with their entry like sheep herds in the lock market during the week. 

The impact can be judged from the fact that in last two weeks foreign activity was 13 percent of total volume of Karachi bourse. As a percentage of actual settlement, foreigners share was 30 percent on an average in last two weeks.

At current levels, Pakistan is trading at 8.5x PE multiple. This is slightly better than last 20-year average PE of 9-10x. After the recent bull run, Pakistan is at 40 percent discount to average regional PE of key Asian countries from a discount of more than 50 percent a few months back. However, the current discount is now in line with historical average discount of 30-40&#37;. 

With local investors now on the sideline after selling aggressively during last week, the FIIs inflows can only sustain these price levels. Though the local political and economic conditions have an impact on stock market, Sohail said that the main driver in next few weeks would remain the buying and selling numbers of offshore investors.


----------



## Omar1984

*SBP announces financing scheme for ginning units 
​*
KARACHI: The State Bank of Pakistan (SBP) has decided to provide financing facilities to ginning sector for modernisation of cotton ginning factories.

A spokesman of SBP said financing would be available only for balancing, modernisation and replacement (BMR) of cotton ginning factories. 

Only SME borrowers, as defined in Prudential Regulations for SMEs will be eligible to avail financing facilities under the scheme.

This scheme will be effective from the date of issuance of circular September 4, 2009 and will remain valid up to 31 December 2010 on first come first served basis and subject to availability of funds under the scheme, he added. 

He said cottonseeds crushing machinery installed in ginning factories would also be eligible to avail financing facilities under the scheme. 

The financing will be available for purchase of new locally manufactured plant, machinery and equipment, he added. 

Financing for purchase of new generators up-to a maximum capacity of 500 KVA will also be eligible, however, not be in excess of the ginning factory&#8217;s in-house energy requirements or upto 500 KVA whichever is less. Financing under the scheme will be available for a maximum period of seven years including a maximum grace period of six months. Locally manufactured machinery using more than 80 percent imported components shall not be eligible for financing under the scheme. 

However, the financing will be limited only to the extent of local components. This condition will not apply to purchase of generators. 

Financing will not be available for the purpose of acquisition of land, construction of building etc. 

Advance payment to the extent of 20 percent of the ex-factory/showroom price can be made in terms of related underlying agreement by securing the bank&#8217;s interest.

Disbursements by banks/DFIs should not be made to the borrower directly, instead payments shall be made to the manufacturers and suppliers of the locally manufactured machinery and generator. 

He said the rate of refinance upto 3 years would be 6 percent with bank&#8217;s spread of 2 percent and end user rate of 8 percent. Similarly over 3 years and upto 5 years the rate would be 6.50 percent with bank spread of 2.50 percent and end user&#8217;s rate of 9 percent. Over 5 years and upto 7 years rate would be 7 percent with bank spread of 3 percent and end user&#8217;s rate of 10 percent. Financing rates will be revised on annual basis effective from July each year. 

Similarly, in cases where the loan amount is not disbursed in full during the validity of an applicable rate, the un-disbursed amount shall attract the new rate of finance/refinance applicable on the date of its disbursement by the bank/***. 

Principal amount of loans will be repayable in equal quarterly, half yearly installments after prescribed grace period, if any. 

However, if a borrower repays the loan amount or its installment, in part or in full, before the due date(s), the banks/DFIs will be under obligation to repay the amount(s) so received within three working days to the concerned office of SBP-BSC (Bank) failing which fine for late adjustment of loan will be recovered from the concerned bank/***, at the rate specified by the State Bank. 

The refinance granted by SBP-BSC offices to the Banks/DFIs shall be recovered on the due dates as reported in the original repayment schedule from the account of the banks/DFIs maintained with the respective office of the SBP BSC (Bank). 

In case the borrowers fail to make repayment of the amount of installment as per the original repayment schedule, the bank/*** will be entitled to charge normal rate of mark up on such overdue principal amount besides taking other actions to recover the same as are incidental to such defaults. staff report


----------



## Omar1984

*Pak-UK bilateral trade expanding 12&#37; every year: UK Diplomat
​*
KARACHI: Pak-U.K. bilateral trade is enhancing with ratio of 12 percent every year; London recognizes the commercial potential of Karachi and Pakistan and expects value-addition in Pakistani Exports to enhance bilateral trade, said Robert W Gibson, Deputy High Commissioner, British Deputy High Commission. 

He expressed these views while addressing in the eight meeting of Diplomatic Affairs Sub-Committee of Karachi Chamber of Commerce & Industry. He was invited as Chief Guest in the said meeting to discuss matters of bilateral trade. 

Robert W Gibson appreciated that during the last 50 years KCCI has made commendable efforts to strengthen the trade, industry and economic activities of Pakistan. He stated that U.K. has great hope to flourish the commercial activities between both countries. 

He informed that U.K. investment in various projects of Pakistan has reached to 400 million British Pounds. He said that trade has not suffered during the global recession however; he emphasized on regular exchange of trade delegation between two countries. 

Commenting on the Travel Advisory, he said that their responsibility was to advice but they cannot compel anyone to visit or not visit Pakistan. He said that situation in Karachi, Lahore & Islamabad was better and British do visit these cities. Travel Advisory is reviewed with the span of time, he added. 

Commenting on the GSP plus status of Pakistan for market access in EU, British Deputy High Commissioner said that it was the job of governments to further the agenda and reach an agreement. He said that Pakistani Value-added textile products is popular is U.K. and its export can be increased with further value-addition.

Robert W. Gibson said that U.K. can provide advance Agricultural Technology and Pakistani farmers have to show their interest and contact for the needful. He said that Royal Agricultural Exhibition would be held in U.K. soon and Pakistani Agriculture sector shall participate in it. He informed that presently 26 British companies were engaged in different sectors and investment is energy sector is also expected.

Commenting on the issuance of Visas, British Deputy High Commissioner said that visa issuance procedures is rationalized and applications from Pakistan are forwarded to U.K. Mission in Abu Dhabi where visa are processed according to the specified criteria and requirement of the Mission. Visas are processed on available evidences and refused due to incomplete or forged documentation. 

During his visits to UK and in his speeches to British Business Circles, he highlights that Pakistan is a very dynamic country with great potential for investment having talented people who appreciate peace and harmony. Pakistan is not what you see in e-Media and read in newspapers and certain quarters of foreign media portray gloomy picture about the law and order situation. 

He said that he was working in Pakistan since the last one and a half year and had noticed that law & order situation was much better as it is portrayed by foreign media. He informed that British companies doing business in Pakistan were enjoying profitable business with satisfaction and most of them are expanding their business. 

Earlier, President, Karachi Chamber of Commerce & Industry, Anjum Nisar welcomed him and expressed his gratitude and high regards towards better relationship among the Governments and people of both Pakistan & United Kingdom. 

Anjum on the occasion drew the attention of British Deputy High Commissioner towards great export potential of Pakistan in Value-added textile products, readymade garments, cotton yarn, woven fabrics, leather goods, surgical & sports goods, hand-made-carpets, Mangoes, plastic articles, Jewellery of Gold fish and sea food. 

He said that imports from U.K. are machinery, boilers, mechanical appliances, iron & steel, chemical products, generators, transmission and telecom apparatus and pharmaceutical products. Anjum Nisar, also expressed his gratitude for British support in &#8220;Friends of Pakistan&#8221; Donor Conference, however, he was of the view that Pakistan need trade instead of aid. 

He said that the current economic scenario has faced a slowdown and economic activities faced a loss of $1.5 million due to energy crisis in Pakistan. He drew his attention to motivate British companies to invest in the energy and agriculture sector. He also requested to reduce the British Visa Processing time of three-months to three-week and stated that due to prolonged visa processing time, Pakistani Businessmen very often lose their order and their counterparts from other countries take-away orders from their buyers. 

He also lamented that due to travel advisory British businessmen were reluctant to visit Pakistan. He also criticized some quarters of foreign channels for biased reporting of law & order situation in Pakistan.

He was also of the opinion that Pakistan government must spend adequate amount of its budget in health and education sector as healthy and educated population contributes to economy.


----------



## Omar1984

*US keen to support Pakistan in energy sector 
​*
ISLAMABAD: A US delegation informed business community on Friday that the US is interested to help Pakistan to cope with energy crisis because power shortage is the second most serious problem in Pakistan after terrorism. 

These views were expressed by a three-member US delegation led by Christian De Angelis, Director for South Asia & Central Asia, Office of the US Trade Representative, Executive Office of the President during a meeting with business community at Islamabad Chamber of Commerce & Industry (ICCI). They said US was actively engaged in energy dialogue with Pakistan to improve the situation. 

They said hectic efforts were afoot to get the legislation passed by US Congress about the establishment of Reconstruction Opportunity Zones (ROZs) in Pakistan with the core principle to create jobs and generate economic activities in war hit areas. 

These ROZs would cover NWFP and Balochistan and would create investment opportunities for Pakistani and foreign businessmen. The USA was also in talks with Pakistan and Afghanistan for cooperation in agriculture sector, they added. They said the US was focusing on enhancing funding for local organizations in Pakistan for economic uplift of the country. 

Speaking on the occasion, President, Islamabad Chamber of Commerce & Industry (ICCI) Mian Shaukat Masud said the USA should sign FTA with Pakistan as it had already signed with other developing countries. 

He said USA has provided duty free access to Bangladesh for export of textile products, which was hurting Pakistani textile sector and urged that the USA should provide similar access to Pakistani products in its markets to offset damaging effect on exports. 

The ROZs should provide equal benefits to Pakistan and USA and it should be ensured that it could not have any negative impact on industry in other parts of Pakistan. 

He said USA should help Pakistan in hydel, coal, wind and solar energy generation, which were cheap sources of energy as compared with thermal power. 

He said federations, chambers and other trade bodies should be taken on board about negotiations between USA and Pakistan officials on economic & tax matters by sharing information with businessmen who were the key stakeholders in implementation of these decisions.

Reactions: Like Like:
1


----------



## Omar1984

*&#8216;Collaboration with foreign firms to boost oil, gas potential&#8217;
​*

ISLAMABAD: Federal Minister for Petroleum and Natural Resources, Syed Naveed Qamar has said involvement of Pakistani companies in partnership with foreign companies is one of the keys to unlocking the potential of Oil and gas reserves. 

The minister expressed these views to the ambassador of Federal Republic of Germany Michael Koch, who called on him to the minister, revealed a press release issued today. Both the leader discussed the matters pertaining to bilateral interests particularly investment opportunities in Pakistan came under discussion during the meeting. 

Qamar said that in view of the country&#8217;s huge energy needs, and with supplies finding it difficult to keep pace with demands, a multi-pronged approach to promote efficacious utilization of precious natural resource and at the same time fast-tracking exploration and production in the indigenous upstream oil and gas sector and through imports was being vigorously pursued. 

Dr Koch also informed the minister of the vast experience German companies had in various processes including exploration, extraction and transportation. 

Discussing the prospects of foreign investments in Pakistan, the minister underlined that his Ministry viewed increased involvement of Pakistani companies in partnership with foreign companies, coupled with the involvement of the local stakeholders, to be one of the keys to unlocking the potential of reserves for the benefit of the country. He said that foreign companies should come together and collaborate with public sector companies to promote transfer of know-how, generate employment and community development. The minister said that the government as well as his ministry would extend all the assistance necessary to facilitate investors. 

Meanwhile, a delegation comprising of senior management of OMV Exploration and Production also meet today with the minister, reveled another press statement issued today. Dr George Watchel, the incumbent General Manager of the company introduced the incoming G.M., Dr. Elmar Collins to the minister. While reviewing the company&#8217;s progress in Pakistan over the years the prospects of upcoming projects came under discussion during the meeting. Appreciating Dr Watchel for his invaluable contribution in exploratory work, particularly in the gas sector in Pakistan since many years, Syed Naveed Qamar also welcomed Dr Elmar to office. He said that investment opportunities for E&P companies existed in the country&#8217;s upstream oil and gas sector and all the necessary assistance to facilitate investors&#8217; initiatives would be extended. staff report


----------



## Omar1984

*IMF praises Pakistans economic performance 
​*
* Zardari says ROZs in FATA will help generate economic activity 
* PM thanks IMF for helping Islamabad overcome economic challenges

Staff Report

ISLAMABAD: Pakistan has done well despite the global recession, the war on terror and the massive displacement of people from Swat and Malakand, which impeded economic activity, head of the International Monetary Fund Mission for Pakistan, Adnan Mazarei, said on Monday. He, along with IMF Resident Representative Paul Ross had called on President Asif Ali Zardari and expressed appreciation for Pakistans economic performance.

He said the international community had great sympathy for the countrys problems and appreciated the major progress made by it in various ways. Briefing the media after the meeting, the presidents spokesman Farhatullah Babar said the head of the IMF mission had appreciated Islamabads efforts to stabilise the countrys economy. 

More economic activity: The president said the establishment of Reconstruction Opportunity Zones (ROZs) in the Tribal Areas would help generate economic activity while alleviating poverty and generating employment. He also stressed the need for opening up US and EU markets to Pakistani goods. 

The two men also called on Prime Minister Yousaf Raza Gilani at the PMs House. Talking about the governments achievements in successfully increasing the tax to GDP ratio from 8.8 to 10.6 percent in one year, the PM expressed his firm commitment to enhance the ratio to 15 percent over the next five years by broadening the tax base. 

The prime minister expressed satisfaction with the overall economic situation in the country, saying that all economic indicators had started showing positive trends after the governments timely intervention and the introduction of corrective measures. 

Help appreciated: While appreciating the IMF for its help in substantiating Islamabads efforts in overcoming economic challenges, Gilani told Mazarei about his governments approach to address the countrys problems including poverty, the power shortage, limited access to public services and extremism through a combination of administrative, political and security measures.


----------



## ejaz007

*Accord to generate power from Thar coal inked *
Updated at: 0530 PST, Wednesday, September 09, 2009 


KARACHI: Sindh government and Engro Power Gen Ltd on Tuesday inked an agreement for a joint venture on 60/40 basis to exploit Thar Coal for energy generation, 

CEO Engro and a representative of Sindh government signed the agreement at a ceremony held at the Chief Minister House here on Tuesday.

Under the agreement, the first project of the joint venture would be an open cast mining facility with an annual capacity of 3.5 to 6.5 million tones for which a detailed feasibility study would be carried out soon.

Engro Power Gen Ltd has been given the responsibility to carry out a feasibility report on an approximately 600-1000MW Thar Coal-based power plant. 

It was agreed that a company proposed to be called Sindh Engro Coal Mining Company to be incorporated with initial sufficient capital to complete the detailed feasibility study. 

Engro Power Gen Ltd and the government of Sindh will be equity partners in 40/60 ratio (60 per cent Engro) in the mining portion of the project.

Detailed feasibility study to take 18 months and a future 6-12 months for financial close of the project.

The company will ensure that adequate skill development programme are put in place along with other training facilities for locals of the area. Two per cent profit before tax to be spent on corporate social responsibility related activities in Thar. 

Board of Directors comprises of 10 directors in 60:40 ratio and the Chairman to be nominee of government of Sindh and CEO of Engro.

*It may be mentioned here that Sindh Cabinet had granted approval to the said joint venture according to which 1.1 billion dollars will be invested on the mining side and 2.2 billion dollars would be invested in power side.*

According to cabinet decision, the construction work of airport at Islamkot has been started while Railways was busy in preparation of feasibility report and study is being carried out to provide 250-cusec water to Islamkot and Wapda was studying for transmission of electricity. 

Accord to generate power from Thar coal inked

Reactions: Like Like:
1


----------



## Omar1984

*Strategic Trade Policy Framework launched 
​*
ISLAMABAD: In order to address the challenges confronting Pakistan on the economic front, Ministry of Commerce launched a comprehensive three years Strategic Trade Policy Framework (2009-12) document in a ceremony here at a local hotel.

Makhdoom Muhammad Amin Fahim, Commerce Minister graced the occasion as Chief Guest.

This framework was produced to cater to the need for developing and effectively implementing a national export competitiveness program. It would provide the overarching reference to different trade measures by the Ministry of Commerce and other Ministries from time to time. The overall objective of the Strategic Trade Policy Framework is to achieve sustainable high economic growth through exports with the help of policy and support interventions by the government, industry, civil society and donors. 

Additionally, Secretary Khwaja Naeem in his welcome address showed deep pleasure at the launching of the STPF, which has been formulated by the Ministry of Commerce with the active collaboration of the Pakistan Institute of Trade and Development (PITAD) within a short span of time. Dr. Safdar Sohail, Director General, Pakistan Institute of Trade and Development made a presentation highlighting features of the Trade Policy. Secretary Commerce thanked everybody who contributed in making the document possible. 

The Commerce Minister appreciated the fact that the Ministry of Commerce has come up with a mid-term strategic response identifying the challenges and suggesting policy interventions. He said &#8220;the world is experiencing one of the most severe recessions in the post war period&#8221;.

He further stated &#8220;Our exports have suffered a decline over the last one year and has been beset with issues like low productivity and slow diversification of export products and markets&#8221;. In this backdrop, to formulate such a strategy in order to remain firm in these difficult economic times, to keep focused on our strengths, and to convert challenges into workable opportunities is a matter of great pleasure and pride for us.&#8221;


----------



## Omar1984

* Federal govt to charge 100&#37; sugar price as penalty
​*
ISLAMABAD: Federal government is expected to charge 100 percent price of sugar with 25 percent of the price as a penalty from those sugar mills which would sign selling contract with Trading Corporation of Pakistan (TCP) but would refuse to deliver the commodity to it when required. 

Economic Coordination Committee (ECC) of the Cabinet has allowed Trading Corporation of Pakistan to enhance its buffer stock of sugar at one million tonnes to avoid sugar crisis in months to come. 

The government has also allowed sugar mills to import 350,000 tonnes of raw sugar in early 2010 to meet the country's sugar needs. There would be maintained at 5 percent price differential between import raw sugar and sugar cane price, by making adjustments in taxes and duties so that interest of the cane growers are safeguarded. Sugar produced from this raw sugar would not be less that Rs 50 per kg and the sugar prices to remain at higher side, he maintained.

Salman Ghani, Federal Secretary Commerce here on Tuesday presented these details before the National Assembly Standing Committee of Commerce and informed that penalty clause of the sugar procurement contract of the Trading Corporation of Pakistan is being amended.

Chaired by Khurran Dastgir Khan, MNA at parliament house committee meeting analysed the role of Trading Corporation of Pakistan in recent sugar crisis.

Makhdoom Amin Fahim, Federal Minister for Commerce and Secretary Commerce and Saeed Ahmed Khan, Chairman Trading Corporation of Pakistan were present in the meeting to respond to the queries of the members.

Secretary Commerce and TCP Chairman successfully pleaded their case and have managed to convince the committee that TCP had actually no role in sugar crisis and acted as per its defined role under ECC decisions. 

They informed the committee that TCP has implemented ECC decision regarding import of 2 lakh metric tonnes of sugar through staggered in manageable tender size in four installments. First tender was opened for import of 25,000 MT sugar at $451.45 per MT, second tender was for import of 50,000 MT sugar at $474 per MT and third tender for 50,000 and fourth and final tender for import of 75,000 MT sugar at $638 per MT was released in April 2009. It was informed to the committee that so far 83,283 MT sugar has already arrived in the country and remaining is in pipeline and will arrive by October 7, 2009. 

It was further informed to the committee that TCP did not cancel but put on hold the tenders on the direction of sugar advisory board and Ministry of Industries and Production. When TCP received intimation from the said two forums it managed to import sugar at the same price within fixed time frame without causing any delay.

They informed the committee that Tandalianwala sugar mills had refused to release their stock of sugar during the raids conducted by government of Pakistan. However, this issue was resolved during August 4 to August 11 by mutual consultation. Similarly, when Peshawar High Court ordered for sale of sugar in NWFP's sugar mills within NWFP's limit, it caused sugar shortages in Sindh and Balochistan

Briefing the committee on future sugar forecast, the officials informed the committee that by the end of September sugar stock with TCP to be at 237,000. Some 40,000 MT sugar is to be procured from local sugar mills. Similarly, 40,000 MT sugar is to be procured in November of which some 10,000 MT to be procured locally and 30,000 to be imported. Sugar stock by the end of November 2009 is to be 155,723 MT.

The Committee members were not satisfied with the details and information submitted by the commerce and TCP officials however, there was a broad consensus in the committee that TCP was not wholly responsible for the entire sugar crisis and many other stakeholders are equally responsible for it.

Kashmala Tariq, MNA was of the view that the government was implicating sugar mills in hoarding alike allegations and taking action against mills belonging to the opposition parties however, no action have yet been taken against any sugar mill that have not sold sugar to TCP which constitutes mainly the sugar mills of ruling elite.


----------



## Omar1984

*TCP has received 83,283 metric tonnes of sugar only
​*
ISLAMABAD: Trading Corporation of Pakistan (TCP) on Tuesday informed the National Assembly&#8217;s Standing Committee on Commerce that it had received only 83,283 metric tonnes of sugar to-date out of the 200,000 tonnes that the ECC had ordered in February, 2009. The Standing Committee met here under the Chairmanship of engineer, Khurram Dastgir Khan, MNA and Federal Minister for Commerce, Makhdoom Amin Fahim was also present on the occasion. The Committee has censured TCP for aggravating the sugar crisis through a grievous delay in importing required sugar stocks, thereby inflicting severe hardships on people and causing a loss of millions of dollars to the government. The members pointed out that all efforts of the government to provide sugar at low cost have failed dismally and millions people are queuing up all day for sugar, which is not to be found in most Utility Stores. TCP was complicit in collusion between powerful government figures, hoarders and mill owners to fleece the poor, said a statement issued by the National Assembly Secretariat. The Committee reprimanded TCP for a two-month delay in finalizing a sugar tender of 50,000 tonnes that TCP had opened in April 2009. Secretary Commerce ascribed responsibility for delay on a price verification committee comprising of himself, Secretary Industries and Secretary MINFA. The Committee found the Ministry response to be inadequate and decided to form a sub-Committee to investigate this issue more thoroughly. It also discussed the Insurance (Amendment) Bill 2008 and recommended unanimously to the Ministry that the law should be amended to bring re-insurance brokers under government regulation. The Committee heard from stakeholders&#8217; private insurers, state-run insurance companies and Pakistani re-insurance brokers. Further discussion on the sugar crisis is to be done in the next meeting of the Committee. The Secretary Commerce informed the Committee that the Ministry intended to withdraw the said bill in the next session of the National Assembly. MNAs Mrs. Yasmeen Rehman, Nawab Abdul Ghani Talpur, Mrs. Tahira Aurangzeb, Ms. Shireen Arshad Khan, Mrs. Kashmala Tariq, Mrs. Jamila Gillani, Chaudhry Iftikhar Nazir, Nauman Islam Sheikh, Haji Muhammad Akram Ansari, Hamid Yar Hiuraj and Iqbal Muhammad Ali Khan attended the meeting. app


----------



## Omar1984

*POL sales up 19.35&#37; on local demand
​*
KARACHI: Oil sales in Pakistan posted a huge increase of 19.35 percent as unveiled by the Oil Marketing Companies (OMCs) numbers for July and August 2009-10.

Total POL products volume (excl. non-energy) recorded 3.56 million tonnes in two months against 2.98 million tonnes in two months 2008-09. 

Local refineries contributed 1.4 million tonnes (only 40 percent of total) whereas remaining 60 percent of the consumption was met through imports (average 74 percent were imports for FO and 58 percent for HSD in 2MFY10 against 57 percent and 52 percent in 2MFY09 respectively). 

An increasing number of the local oil consumption demand is being imported which exposes the country to another price risk which is being built slowly and gradually in the form of rising int&#8217;l oil and commodity prices &#8211; inter-corporate debt being the major culprit in this regard.

The Black Oil products (FO & LDO) consumption rose massively by 36 percent on year-on-year basis, which was responsible for more than halve of the overall jump in growth in 2MFY10 (55 percent contribution to the total rise). 

FO and LDO consumption shot up and declined by 37 percent and 20 percent YoY, respectively in 2MFY10 while their combined volume stood at 1.68 million tonnes in 2MFY10 (47 percent of total vol.) against 1.24 million tonnes (41 percent of total) in 2MFY09). 

White Oil products also contributed with an increase of 7.4 percent YoY with total volume of 1.88 million tonnes in 2MFY10. FO increase came as prices stand 31 percent down on yearly basis standing at Rs 44,692 per tonne which however aggravated Pepco, Hubco, Kapco and other IPPs&#8217; cash positions (high generation cost and low reimbursement), due to acute power shortage in the country. 

The decline in LDO sales was recorded due to the rainy season observed, which rendered less demand for the product in agricultural activities. FO and HSD contributed 78 percent of the total growth during 2MFY10.

During 2MFY10, Mogas&#8217;s huge increase of 41 percent YoY can be attributed to reduced price differential from alternates like Compress Natural Gas (CNG) during 2MFY10 as retail prices hovered low on YoY basis coupled with lower smuggling from Iran etc.

Slight growth of 0.1 percent YoY in HSD (37 percent of total vol.) came only on the back of its increased use in transportation and household power generators due to electricity needs. Excluding HSD & MS, White Oil products - HOBC, JP-8, JP-1 & Kerosene - witnessed volume growth of 16 percent YoY to 254,000 tonnes. 

Record POL growth of 39 percent YoY in Aug 09 was observed led by skyrocketing FO sales. 

During Aug09, POL consumption punched in a solid 39 percent YoY growth mainly due to record growth in Black Oil of 49 percent YoY (FO 49 percent YoY, 6 percent MoM and LDO 19 percent YoY, 74 percent MoM) and White Oil of 31 percent (mainly by HSD 27 percent, MS 60 percent YoY). Sharp increase in LDO consumption was witnessed owing to lower MoM retail prices. 

The government price pass-on on regulated products coupled with lower differential with the alternates (CNG/LPG) also impacted HSD and Mogas volumes positively as they grew by 15 percent and 22 percent MoM, respectively in August 2009.


----------



## Omar1984

*Pak-Turkey cooperation to benefit both countries
​*
ISLAMABAD: Joint ventures in processing, manufacturing and export of ceramic tiles, marble and other precious stones by Pakistan and Turkey would produce plenty of beneficial results for both countries.

President, Islamabad Chamber of Commerce & Industry (ICCI), Mian Shaukat Masud, expressed these views during a meeting between two member business delegation of Turkey of ceramic tiles and marble field, M/s. Ozlem Dogan and H. Noyan Altin who called on him at the ICCI.

He said that in Pakistan there was an increasing demand for machines manufacturing marble and granite as the country was home to world&#8217;s second largest marble and granite reserves.

The President added that we are currently using equipment imported from Germany for the processing of these stones. Noting that Turkey was one of the few big manufacturers of ceramic tiles, marble and granite processing equipment, Pakistan can establish close relations in this field with Turkey and could start procuring processing machines from it. staff report

Reactions: Like Like:
1


----------



## Omar1984

*Pakistan-Iran trade crosses $1 billion figure
​*
ISLAMABAD/DHAKA (APP) - The bilateral trade between Pakistan and Iran has crossed the figure of US$1 billion for the first time and has increased from 773.53 million in 2007-08 to US $1,251.37 million in 2008-09.
According to a press statement received here from Embassy of Pakistan in Tehran, during the past years, Pakistan-Iran economic and trade relations have been continuously over-shadowed by several political and non political obstacles and their trade relations were not reflective of the true potentials.
However, the statement added, with the coming to power of present government in Pakistan, the situation has started improving.
During the last one and a half year, President Asif Ali Zardari has twice visited Iran, the statement said adding that similarly, Iranian President Mahmoud Ahmadinejad also visited Islamabad.
These visits have paved the way for further promotion of trade and economic relations between the two countries.
The two governments have taken several steps to improve bilateral cooperation in the arena of trade and economy.
Pakistan exports to Iran have shown an increasing trend which is very promising for its economy, the statement said adding that the exports have increased from US$214.20 million in 2007-08 to US$399.04 million in 2008-09, showing an increase of 86pc.
Due to the initiative of the Democratic Government in December, 2008, Iran agreed to provide 60,000 barrels of crude oil per day on 90 days interest free deferred payment.
Now Pakistan&#8217;s import have increased from 15,000 barrels per day (July 2008) to 50,000 barrels per day July 2009, accounting for 33pc of Pakistan&#8217;s crude oil imports. 
Meanwhile, Chinese Ambassador Luo Zhaohui said, "Pakistan and China, tied together by time tested cordial relations in all spheres of life, will take strides to explore all possible avenues leading to increased investment opportunities in power as well as business sectors". He expressed these views while addressing a ceremony to celebrate 58th anniversary of Pakistan-China diplomatic relations organized by Pak-China Friendship Association (PCFA) NWFP here.
The ambassador said the presence of Chinese entrepreneurs in the ceremony showed that the Chinese people were keen to exploit all opportunities in economic sector.
He said we always stood by Pakistan in every difficult situation and reiterated that they would continue this cooperation in future.
He said China has been extending all possible cooperation in hydel or road projects and despite law and order situation in Frontier province, the Chinese workers had never suspended work on different ongoing projects.

Reactions: Like Like:
1


----------



## Omar1984

*Pakistan signs several MoUs with Chinese companies 
​*
KARACHI: Pakistan has signed a large number of memorandums of understanding (MoU) with various organisations in China during the visit of President Asif Ali Zardari to facilitate investment, trade, transfer of technology and knowledge sharing between the two countries.

This was stated by the Chairman Board of Investment (BoI) Saleem H Mandviwalla. 

Giving details, he said that a MoU was inked on cooperation in the field of drug regulation between Drug Control Organization, Government of Pakistan and State Food and Drug Administration of People&#8217;s Republic of China.

BoI has signed MoU on investment promotion cooperation with Investment Promotion Agency of the Ministry of Commerce of the People&#8217;s Republic of China.

Sindh Agriculture University (SAU) Tandojam has signed MoU with South China Agricultural University (SCAU) Guangzhou, China for cooperation in agriculture production and research.

Memorandum of Understanding on Cooperation on River Fisheries and Related technologies between the Department of Fisheries, Government of Sindh Islamic Republic of Pakistan and Pearl River Fisheries Research institute of Chinese Academy of Fishery Sciences.

Another MoU has been signed between the Department of Fisheries, Government of Sindh Islamic Republic of Pakistan and South China Sea Fisheries Research Institute of China Academy of Fishery Sciences for cooperation on marine fisheries and related technologies. 

MoU on Global Open Trunking Architecture (Gota) for Emergency Communication and Disaster Control management in Pakistan between Ministry of IT and Telecom (National Telecommunication Corporation) and ZTE Corporation People&#8217;s Republic of China.

MOU between China Council for the Promotion of International Trade, Guangdong Sub-Council (China Chamber of International Commerce) and the Board of Investment.

MoU between Ministry of Water & Power and China Three Gorges Dam Project Corporation on Bunji Hydropower Project. 

Mandviwala said that the project envisages an investment of $7 billion to $8 billion to produce 7,000 to 8,000 megawatts of hydel energy.&#8212;APP


----------



## Omar1984

*Pak-China collaboration ​*

PAKISTAN and China are the times-tested friends and, after collaborating in telecom and some other sectors, there is vast potential for collaboration in the field of agriculture between these two nations. 

This was stated by Punjab University (PU) Vice Chancellor Prof Dr Mujahid Kamran during a meeting with Chinese delegation from Biocentury Transgene (China) Co Ltd and Guard Agriculture Research Services Pvt Ltd (Pakistan). The joint venture of both companies offered academic and research collaboration with Punjab University. 

The Vice Chancellor, welcoming the offer, invited a meeting of the stakeholders from both sides to brainstorm how this collaboration could be made in the best interest of PU students, researchers and Pakistani farmers. PU team included Dean Life Sciences Dr Shahida Husnain, Dr Javed Akhtar, Dr Rukhsana Bajwa, Dr Tayyab, Dr Muhammad Jamshed and the Chinese team was headed by Dr John Liu. Dr John Liu gave a comprehensive briefing on the proposed areas for collaboration with PU.


----------



## ejaz007

*36 Sino-Pak MoUs inked in one year: Zardari*

* President says both countries will continue to cooperate for promotion of regional and international peace, advancement in science and technology

ISLAMABAD: Pakistan and China have identified more than 50 new initiatives for joint collaboration and signed around three dozen MoUs in the past year, President Asif Zardari said on Tuesday. 

In an interview with Guangming Daily, a widely circulated newspaper in China, Zardari said Pakistan, being a longstanding friend of China, was keen to learn from its experience. 

Praising Chinese growth and development, he said the country had made stupendous economic progress and achieved spectacular growth during the last 10-15 years. 

There is a lot to learn from the Chinese model of economic development, particularly the one adopted in provinces of Zhejiang and Guangdong, he said.

He said the progress made by China in agriculture, especially in hybrid seed and optimal utilisation of water, could be emulated in other countries, including Pakistan. 

To a question about his several visits to China, he said during all the visits he had focused on familiarising himself with the Chinese experience of growth and development. 

I have been impressed by all round development your great country has achieved. One is inspired by the remarkable achievements of the Chinese people and the wise stewardship of its leaders. I think there is a great deal Pakistan can learn from the Chinese experience and its development model, he said. 

The goodwill must act as a precursor for adding greater commercial and cultural content to the economic and public diplomacy between the two countries, he added. 

He said Pak-China friendship spans half-a-century and is based on a very high degree of trust and commonality of interests. 

The foundations of a strong friendship with China were laid by the visionary policies of former premier Zulfikar Ali Bhutto and he played a leading role in building the edifice of the relationship. 

Bhuttos vision as a statesman was best illustrated in his role as the architect of Pakistans strategic cooperative ties with China, he said. 

He said the two countries would continue to cooperate for promotion of global and regional peace, advancement in the science and technology and improvement in the living standards of the people. 

This relationship will grow stronger and stronger with each passing year, he said. 

To a question about Pakistans stance over law and order situation in Xinjiang province, he said the government of Pakistan fully supported the Chinese governments efforts to maintain social stability, peace and ethnic harmony not only in Xinjiang, but across the China. Pakistan fully supported Chinas policy of social harmony and development, he said. We also believe that with the unprecedented economic development in China all ethnic groups would stand to gain, he added. app


Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## ejaz007

*Government approves Rs 7.5bn construction of Gwadar Intl Airport *
* CDWP approves 42 projects worth Rs 107.2 billion
By Ijaz Kakakhel

ISLAMABAD: The Central Development Working Party on Thursday approved 42 national importance projects worth Rs 107.2 billion including foreign aid component of Rs 10 billion. 

The 42 projects included Construction of New Gwadar International Airport (NGIA) and Allied Facilities Rs 7.5 billion including Rs 1.312 billion as FEC. The scheme envisages construction of state of the art NGIA, along with allied facilities over a piece of land already acquired measuring 4300 acres. The construction of the NGIA would be undertaken in phased programme over a 30-year period. 

The airport would be developed as a green-field airport and all major components of an airport would be developed as part of this project. The officials claimed that the NGIA would be the business gateway to Pakistan through the city of Gwadar. The government had already allocated Rs 750 million in the PSDP 2009-10 for construction of the airport. 

The total 42 development projects included, 27 projects in Infrastructure Sector costing Rs 49.3 billion, 13 projects in Social Sector costing Rs 57.6 billion. In addition, 2 projects relating to Commerce and Industry costing Rs 0.3 billion were approved today. Realizing the gravity and demand for energy, the government approved various projects like Establishment of 132 KV Grid Station, Bajaur costing Rs 453 million and Dargai Pall small Dam in South Waziristan Agency costing Rs 313.232 million .

These schemes would not only resolve the electricity problem of these areas but also generate employment opportunity for people of backward areas. The CDWP meeting authorized the WAPDA to undertake feasibility study of Pattan Hydro Power Project, which would generate 2800 MW of electricity.

For improvement and development of Transport Sector, Bridges across the River Indus connecting Larkana & Khairpur, linking Kandhkot located on the National Highway N-55 with Ghotki, and a bridge on River Ravi Kamalia Harrapa Rd. district Toba Tek Singh have been recommended to ECNEC at cost of Rs 17.4 billion. Construction of these bridges would provide a better link in economically backward areas and reduce the distance between major towns.

For rehabilitation of the damages in Swat and to improve the socio economic condition of the area through multi sectoral activities, i.e. provision of social infrastructure, the CDWP recommended Swat Development Package to ECNEC costing Rs 4 billion. This project would greatly help to resettle the IDPs and help generate economic activity in that area.

Population Welfare Programme, which was an on-going activity executed in all provinces, has been recommended to the ECNEC for its further extension up to year 2014 costing Rs 50 billion. The meeting, however, has set up a committee to make recommendations to devise a better delivery mechanism. 

The CDWP also considered 3 concept papers namely: Disaster Management Programme Sindh, Communication System for Coastal Management in Arabian Sea (JICA) and lastly, to increase the participation of Girls Students at the Middle Schooling level and reduce drop outs in the rural area of Sindh. Deputy Chairman Planning Commission, Sardar Aseff Ahmad Ali chaired the meeting. The meeting was attended by the sponsoring agencies and the representative of provincial governments and special areas.

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## ejaz007

*DG Khan Cement records Rs 525m net profit*
Staff Report 

KARACHI: DG Khan Cement has recorded Rs 525 million net profit in the year ended June 30, 2009, overcoming a loss of Rs 53 million in the last year.

The earnings per share also rose by Rs 1.96 during the year under review against Rs 0.21 loss per share in the previous year, a notice to Karachi Stock Exchange (KSE) stated on Thursday.

The aimprovement in profitability is attributed to considerable jump in retention levels (up 59 percent) during the year. The net sales of the company jumped to Rs 18 billion in the said year, compared to Rs 12 billion in the previous year. Whereas, the cost of sales also showed an increase in the same proportion of Rs 12.358 billion over Rs 10.530 billion in the previous year.

The selling and distributing expenses moved to Rs 1.871 billion against Rs 561 million in the last year. Company also incurred impairment loss of Rs 257 million on its investment in the equities. 

The cumulative sales of the company remained 10 percent lower at 3.96 million tonnes during FY09 as against 4.40 million tonnes previously. On segregated basis, the company dispatched 2.38 million tonnes of cement in the local market, which is 35 percent lower when compared to 3.64 million tonnes of FY08. 

Resultantly, the company lost almost 4pps in its market share at 12 percent versus 16 percent in the last year. On export front, the company sold 1.58 million tonnes of cement in FY09 as compared to 0.75million tonnes previously thus, recording massive 109 percent jump against the industry growth of 47 percent. DGKC has also enhanced its export contribution in the industry by 400bps to 14 percent from 10 percent, previously.

Daily Times - Leading News Resource of Pakistan

---------- Post added at 10:20 AM ---------- Previous post was at 10:19 AM ----------

*Tameer bank declared MFB*

KARACHI: State Bank of Pakistan declared Tameer Micro Finance Bank Limited on Thursday as scheduled micro finance bank (MFB) for the purpose of its direct membership of Clearing House with immediate effect. staff report


Daily Times - Leading News Resource of Pakistan

---------- Post added at 10:21 AM ---------- Previous post was at 10:20 AM ----------

*Forex reserves increase to $14.36 billion*

KARACHI: The countrys foreign exchange reserves have reached to $14.360 billion on the week ending on September 12 as compared with $14.243 billion last week, data released by the State Bank of Pakistan shows on Thursday.

The overall reserves recorded a gain of $117 millions during the last week. The reserves held by the SBP witnessed a gain of $104 million to reach $10.843 billion, compared with $10.739 billion last week. 

The reserves held by the banks other than SBP witnessed a gain of $13 million to reach $3.517 billion as compared with $3.504 billion last week. staff report


Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## Jamshed

*Current account deficit down by 80 percent to $527 million in July-August *

KARACHI (September 18 2009): The country's current account deficit dipped by 80 percent during the first two months of current fiscal year, mainly due to heavy home remittances sent by expatriate Pakistanis and decline in trade deficit. The State Bank of Pakistan said on Thursday that country's current account deficit declined by 2.149 billion dollars to 527 million dollars during July-August as compared to 2.676 billion dollars during the corresponding period of last fiscal year.

Business Recorder [Pakistan's First Financial Daily]


----------



## Jamshed

*Economy gradually picking up on sound footing*
SLAMABAD (September 18 2009): Despite huge challenges of energy crisis, continuing war against terrorism, domestic security and overall impact of global economic recession, economy of Pakistan has been gradually picking up on sound footing, economic indicators suggest. Economy during the current financial year has marked significant advancement in different sectors, hence steadily moving towards sustainability, notwithstanding the current domestic as well as global challenges.

The inflation eased to a 20-month low in August 2009 as it dropped to 10.69 percent after edging up 11.2 percent in July 2009. The downward trend in inflation had started since October 2008, after touching an all-time high of over 25 percent and the government projected single digit inflation by the end of year.

In terms of trade, the deficit has narrowed almost by 39 percent during the first two months of financial year 2009-10 as against the same period of the last financial year. Trade deficit during July-August (2009-10) was recorded at 2.194 billion dollar as against the deficit of 3.564 billion dollar recorded during July-August (2008-09), according to Federal Bureau of Statistics.
Business Recorder [Pakistan's First Financial Daily]


----------



## Jamshed

*CDWP approves 42 projects worth Rs 107.2 billion *

ISLAMABAD (September 18 2009): The Central Development Working Party (CDWP) of the Planning Commission on Thursday approved and recommended 42 projects of different sectors, costing Rs 107.2 billion with foreign exchange component of Rs 10 billion. The CDWP authorised the Water and Power Development Authority (Wapda) to undertake feasibility study of Pattan hydro power project that would have the capacity to generate 2800 MW electricity.

Deputy Chairman of the Planning Commission Sardar Aseff Ahmad Ali chaired the CDWP meeting that was attended by the sponsoring agencies and the representative of provincial governments and Special Areas. The CDWP recommended Swat development package to the ECNEC for approval, costing rupees four billion. Of the total approved projects, 27 belong to infrastructure sector, costing Rs 49.3 billion and 13 to social sector, costing Rs 57.6 billion.
Business Recorder [Pakistan's First Financial Daily]


----------



## Omar1984

*Pepco, HPE ink 747MW power project ​*
LAHORE - Pakistan Electric Power Company (PEPCO) and Harbin Power Engineering (HPE), China signed a significant project titled &#8220;747 MW Combined Cycle Project&#8221; located at Guddu Power Company under the Central Power Generation Company Limited (GENCO II) at Wapda House here on Saturday. 
MD PEPCO Tahir Basharat Cheema, while signing the above project said that this project is part of PEPCO&#8216;s long term initiative to provide reliable and cost-effective power to the people of Pakistan. He added that PEPCO has been able to successfully negotiate and finalise the deal at competitive market prices with highest efficiency of all installed and under construction projects in Pakistan with net efficiency of 54.5pc. Besides, he also stated that this project will replace the existing underrated units 1,2,3 and 4 at Guddu which at present are only providing 250 MW or so while using the same quantity of fuel, would also provide affordable base load generation for the country. 

PEPCO also informed that HPE china is a leading Engineering company having considerable experience in power plants. Harbin also has wide experience in Pakistan and had been involved in projects at Guddu, Faisalabad, Kotri , Jamshoro, Muzafargarh and Malakand. 

They will use the gas turbines from General Electric USA, which is the world&#8217;s largest gas turbine supplier with extensive experience both internationally and Pakistan as well. The gas turbine contemplated for the project is Frame size 9-FA, which is amongst the most effective and best in the world. These gas turbines utilise the latest metallurgical advances and coatings to produce one of the highest possible efficiencies. 

The project was signed by Guo-Yu President Harbin Power Engineering and Tahir Basharat, who later informed that by shutting down inefficient and outlived Guddu units and utilising gas, a new combine cycle will provide tremendous saving due to almost double electricity production, with improved availability parameters. Consequently, this project is also part of PEPCO strategy to exit RPPs, which will ultimately result and help in phasing out theses RPPs.

Reactions: Like Like:
1


----------



## Omar1984

*ADB to provide $780m for Pak energy sector ​*
ISLAMABAD (APP) - The Asian Development Bank (ADB) is extending $780 million to Pakistan through a multitranche financing facility for priority energy efficiency projects that will secure the country&#8217;s growing energy needs and reduce its reliance on costly, polluting fossil fuels.

Accordign to ADB press release received here, the $1.18 billion Energy Efficiency Investment Program underpins Pakistan&#8217;s first-ever initiative to make both the pursuit of energy security and low-carbon growth a single strategic priority. The 10-year program puts energy efficiency and the adoption of clean technologies at the heart of government planning and public investments, it added.

The Multitranche Financing Facility will finance short to medium-term energy efficiency projects, including the replacement of incandescent light bulbs with more efficient and cost-effective compact fluorescent lamps.
The facility, which will release funds in tranches, will provide a portion of the government&#8217;s 10-year energy efficiency investment plan, estimated at $3.8 billion.

Targeted energy savings under the program will reduce the country&#8217;s energy intensity, while cutting greenhouse gas emissions by an estimated 30 percent. The overall gains in annual savings by fiscal year 2019 are expected to be around $4 billion and would provide major social benefits, such as increased household incomes, jobs, and reduced poverty levels.

The program will help the government reduce public expenditures and subsidies, easing the debt problem in the power sector which has weighed on attempts at improvements in the past.

It also removes financial barriers to investment in clean energy technology, opening the way for increased private sector involvement with ADB, and other development partners, helping to leverage commercial financing support.
Projects in the program are expected to be eligible for earning carbon revenues under the Clean Development Mechanism of the Kyoto Protocol.
Through the facility, ADB will extend $760 million in loans from its ordinary capital resources in tranches.

It will provide a further $20 million from its concessional Asian Development Fund. Co-financing equivalent to Euro 150 million will be provided by Agence Franaise de Dveloppement, with the government financing $200 million equivalent.


----------



## Omar1984

*Zardari for Pak textile direct access facility ​*
FAISALABAD (APP) - Federal Minister for Textile Industry, Rana Farooq Saeed Khan has said that government is fully aware of economic potential of textile sector and President Asif Ali Zardari during his recent visit to UK has stressed on market access for Pakistani textile products to European countries.
He was addressing a public gathering in his home town Sammundri near here Wednesday.

He appreciated the political maturity and vision of President Asif Ali Zardari and said that he has made it clear to the British Officials that war on terror has inflicted a colossal loss to the Pakistani economy but in spite of this fact Pakistan being a responsible member of the international community emphasized for trade instead of aid.

Rana Farooq Saeed Khan said that textile sector is the backbone of national economy as it was contributing 60 per cent towards foreign exchange earnings in addition to offering 40 per cent jobs to the work force.

He said that in spite of role of a frontline country in the war against terrorism America and European Union are extending extra ordinary concessions to Bangladesh and other countries which has inflicted direct blow to the Pakistani exports. He said that these discriminatory policies coupled with global melt down has plunged textile sector in to deep crisis.

However, he said that PPP government has a privilege to announce a consensus, viable and most dynamic 5-year textile policy with main emphasis on enhancing production and export of value added textile products. He said that revival of textile sector would also create new job opportunities for the male as well as female work force in addition to enhancing our exports.

He said that President Asif Ali Zardari as well as Prime Minister Syed Yusuf Raza Gilani is striving hard to get the facility of direct access for Pakistani textile products. &#8220;I am optimistic that as a result of recent visit of President to UK and America he would be able to convince those countries to give direct access to the Pakistani products&#8221; he said and added that this would be a big achievement of this government which would not only stabilize textile sector but also pave way to further strengthen the national economy.


----------



## Omar1984

*Clinton to help secure investments ​*
NEW YORK (APP) - Former President Bill Clinton promised to help Pakistan in securing much-needed foreign investments that would create opportunities for the country&#8217;s economic growth and well-being of its people.

The former US president, who heads the Clinton Global Initiative (CGI), told President Asif Ali Zardari at a meeting with the Pakistani leader that his organization would work with Pakistan&#8217;s private and public sectors in furthering those objectives. In this regard, Clinton said he would soon visit Pakistan, according to Spokesman of the president and former Senator, Farhatullah Babar.

President Zardari, who arrived in New York on Sunday night, has a packed schedule of engagements during his stay in New York. He got down to work soon after his arrival.

The CGI works with the private sector, non-governmental organizations and global leaders to effectively confront the world&#8217;s most pressing problems. Briefing newsmen on the Clinton-Zardari meeting, Spokesman Babar said that former president Clinton expressed appreciation for the achievments made by Pakistan under the leadership of President Zardari and wished him continued success.

He said that President Zardari was especially keen on meeting Clinton since this year&#8217;s action areas of CGI were of interest to Pakistan, including strengthening of infrastructure, building of human capital and women&#8217;s emancipation.

President Zardari urged Clinton to launch projects for small- and medium-sized dams to help Pakistan meet its pressing water and energy needs. Thirteen dam sites have been identified&#8212; five in Balochiatan, four in Sindh and two each in Punjab and NWFP. The president said the CGI should look at the prospects of private/public enterprise to undertake these crucial projects for Pakistan. In addition, President Zardari proposed that CGI should consider awarding scholarships to 10 brilliant Pakistani students for studies in U.S educational institutions.

In the context of building infrastructure, President Zardari told former US president that he welcomed the US for setting up an energy task force and looked forward to energy dialogue during the Secretary of State Hillary Clinton&#8217;s visit to Pakistan next month. During the meeting which lasted over forty minutes, the spokesman said that the two leaders also discussed issue of militancy, Pak-US relations, Indo-Pak ties and the situation in the region. Clinton appreciated the progress made by Pakistan during the last one year, especially regarding fight against militancy and rehabilitation of displaced persons from the Swat region. 

In the context of Indo-Pak relations, President Zardari said he believed that dialogue and resumption of the composite dialogue were in the best interest of the region, the spokesman added. Pakistan, he said was determined not to allow its territory to be used against any other country.

Expressing concern over Drone attacks, he said Pakistan should be provided with the Drone technology so that it could itself combat the militants instead of its use by others. In the context of US-Pak economic relations, the President said steps should be taken to provide market access to Pakistani products in the US as well as the EU countries. Present at the meeting were Foreign Minister Shah Mamood Qureshi, Chairman Foreign Relations Committee of the National Assembly, Asfandyar Wali, Secretary General Salman Farooqi and former Senator Farhatullah Babar.


----------



## Omar1984

* Pak traders urge Obama for market access not aid or grant ​*
LAHORE, Sept 23 (APP): The elected body of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Wednesday urged US President Barack Obama for direct free market access and not aid or grant as Pakistan suffered tremendous irreparable loss of one and half trillion dollars since 9/11. 

FPCCI chief, Sultan Ahmad Chawla, all federation VPs Mian Adress, Hameed Akhtar Chadda, Mansha Churra, Aftab Barlas, Daru khan, Zakaria Usman and founder chairman Pak-US Business Council and former federation chief, Iftikhar Ali Malik and several other top private sector business leaders in a joint statement called upon Obama to provide direct free market access in the US to our traditional and non traditional products on the terms and condition applicable to Least Developed Countries (LDCs) as Pakistan had faced huge losses in terms of billions of dollar expenditures in the war against terror, absence of foreign investment, sharp decline in export, inordinate delay in development projects, destruction of millions of houses in Swat, NWPF, tribal areas and loss of hundreds of human lives in war against terror in the region besides camping of millions of Afghan refugees in addition to millions of internally displaced people. 

Sultan Ahmad said that &#8220;In principal we badly needed market access in US and other European countries and not aid or grant at all to counter balance our losses in the aftermath of 9/11 debacle and war against terror. He said that market access will definitely help rebuild our bleak national economy. 

Founder Chairman Pak-US Business Council Iftikhar Ali Malik said to effectively counter terror with better results, durable peace is pre-requisite in Swat, NWPF and tribal areas coupled with better economic condition. He said on certain occasions, US administration promised to develop Reconstruction Opportunity Zones (ROZ) to help alleviate poverty and unemployment especially in the trouble hit areas of Pakistan, which, he observed , not even after the lapse of several years has materialised. 

He said US program of ROZ must be implemented instantly and ensure cent per cent buy back as 550 textile weaving, spinning, textile make-up and garments units with full infrastructure needs immediately rehabilitation and direct US market for stabilizing the national economy on war footings. 

USA also must transfer technology to develop agro based industry because Pakistan has emerged as the 4th largest milk producer in the world as we have abundant milk and livestock. 

He said nearly over 20&#37; of our agricultural products are consumed by our Muslim brother country Afghanistan which causes food shortage in Pakistan. 

Iftikhar Ali Malik emphasised the urgent need for assisting Pakistan to overcome its economic crisis by restoring quota system at par with all other under developing countries besides market access on zero rate duty. 

Iftikhar Ali Malik said that Pak economy has been suffering a net loss of $ 7 billion annually.


----------



## ejaz007

*US Congress ratifies KL aid bill for Pak *
Updated at: 0103 PST, Thursday, October 01, 2009


WASHINGTON; Sami Ibrahim: The US Congress Wednesday gave the final go-ahead to triple aid to Pakistan to 1.5 billion dollars a year through 2014, hoping to encourage stability to assist the fight against Islamic extremism. 

Despite misgivings by some lawmakers, the House of Representatives approved the bill by a voice vote after the Senate unanimously approved it last week. 

The bill now needs only the signature of President Barack Obama, who has enthusiastically supported the aid package as part of his administration's campaign to root out Islamic extremism from Pakistan and Afghanistan.

The U.S. House of Representative passed a $ 7.5 billion Pakistan aid bill Wednesday, a week after the Senate approved the same measure to bolster development for 170 million Pakistanis, grappling with economic and terrorism challenges in a region that has seen high-stakes American engagement since 2001.

The voice vote in the House marked Congressional appoval of the long-awaited compromise legislation named "The Enhanced Partnership with Pakistan Act of 2009," and more commonly known as Kerry-Lugar Bill.

The legislation now goes to the White House for President Barack Obama's signature on authorizing $ 1.5 billion annually from 2010 to 2014.

The Pakistani diplomats and officials welcomed the Congressional approval of the bill and saw the measure the compromise version as a vastly improved and less restrictive version.

Islamabad's ambassador in Washington Husain Haqqani said the bill signifies Washington's long-term commitment to his South Asian nation, the U.S. abandoned and sanctioned after Soviet pullout from neighboring Afghanistan in 1989.

The measure triples U.S. democratic, economic, and social development assistance to Pakistan with a particular focus on strengthening democratic institutions, promoting economic development, and improving Pakistan's public education system. The measure also acknowledges Pakistan's pivotal anti-terror efforts on the Afghan border.

The legislation was intrduced in the House on September 24, when the Senate passed the measure and President Obama co-chaired Friends of Democratic Pakistan summit with President Asif Ali Zardari in New York, to declare commitment to the security and development of Pakistan, considered key to succcess against militants in neighboring Afghanistan, where the Taliban insurgency has been expanding.

According to the House Foreign Affairs Committee, the measure also authorizes military assistance to help Pakistan disrupt and defeat al Qaeda and relevant insurgent elements, and requires that such assistance be focused principally on helping Pakistan with its critical counterinsurgency and counterterrorism efforts.

Congressman Howard L. Berman, chairman of the House Foreign Affairs Committee, introduced the compromise legislation.

Pakistan has lost more than $ 35 billion in economic activity to the fight against al-Qaeda and Taliban militants in its northwestern areas since September 11, 2001 and more Pakistani soldiers and security personnel have laid down their lives than the combined losses the United States and its allied operating in Afghanistan have suffered.

Richard Holbrooke, the Obama Administration's special representative for Pakistan and Afghanistan hailed the legislation as an important milestone as he acknowledged Pakistan's critical importance in the region.

Howard Berman, earlier, praised the merits of the "bicameral, bipartisan legislation."

"I rise in strong support of the bill... we need to forge strategic partnership with Pakistan in a volatile region --- this bill will be in our national security interest," he said in his opening remarks.

Taking part in the debate, Republican Representative Ileana Ros-Lehtinen, Ranking member of the Committee, voiced her party's strong support for the bill, sayint it will ultimately help support the American mission in Afghanistan.

She said the Pentagon has indicated that its concerns have been addressed with regard to undue constraint earlier propsed on security assistance for Pakistan.

To support Pakistan's paramount national security needs to fight the ongoing counterinsurgency and improve its border security and control etc., the bill authorizes funds for the Foreign Military Financing (FMF) and International Military Education Training (IMET) for 5 years.

It authorizes the Secretary of State to establish an exchange programme between military and civilian personnel of Pakistan and NATO member countries. 

However, the Secretary of State must certify that Pakistan continues to cooperate with the United States to dismantle supplier network relating to the acquisition of nuclear weapons related material, such as providing relevant information from or direct access to Pakistani nationals associated with such networks. 

The Secretary has also to certify that Pakistan is making significant efforts to prevent al-Qaeda and associated terrorist groups, including Lashkar-e-Taiba and Jaish-e-Mohammad from using its territory to launch attacks against United States or coalition forces in Afghanistan or cross border attacks into neighbouring countries. 

The Secretary is also required to certify that the security forces of Pakistan are not materially or substantially subverting the political or judicial processes of Pakistan. 

However, the Pakistani officials point out that all these conditions are in line with Pakistan's declared national policy on these issues as Islamabad is against nuclear proliferation, is committed not to allow its territory to be used for terrorism and wants to progress on path to democracy.

A salient feature of the bill is the waiver provided in the legislation.

Significantly, the bill allows a waiver against these restrictions if the Secretary of State, under the direction of the President, determines that doing so is important for the US national security interests.

Neither the PCCF nor the CSF come under the purview of Kerry-Lugar Bill and are, therefore, not subject to conditions imposed on the security assistance. 
Besides, none of the above mentioned conditions can set in motion automatic sanctions. 

Some Congressmen including Republican Dana Rohrabacher expressed their reservations on extending massive economic and security assistance to Pakistan while others including Demcoratic Gary Ackerman called for proper usage of the assistance.

Republican Representative from Texas Ron Paul, sustained aid for Pakistan is not in the U.S. interests as American itself is facing economic problems. At the same time, also opposed U.S. bombing in tribal areas, saying it is antagonizing the Pakistanis against the United States.

Representative Sheila Jackson Lee, co-chair of the Pakistani Congressional Caucus, paid tribute to the resilience of the Pakistani people, saying they want democracy and that Washington must support them. She also commended the Pakistani military's anti-terror efforts and noted they have lost hundreds of security personnel in the struggle against militants.

Chris Van Hollen, the Karachi-born Democratic from Maryland, the U.S. should learn from its past mistakes and underscored that maintaining close ties with Pakistan is extremely important to American security interests.

He regretted that the Reconstruction Opportunity Zones initiative, he sponsored, could not find a place in the compromise version. 

US Congress ratifies KL aid bill for Pak - GEO.tv


----------



## owais.usmani

*Pakistan&#8217;s Trade Gap Narrows 55.9&#37; in September as Imports Fall ​*

By Farhan Sharif

Oct. 10 (Bloomberg) -- Pakistan&#8217;s trade deficit narrowed by 55.9 percent in September as imports fell faster than exports.

The trade gap narrowed to $897.9 million in the third month of the fiscal year, from $2.03 billion a year ago, according to data posted on the Web site of the Federal Bureau of Statistics in Islamabad.

Overseas sales fell 14.2 percent to $1.52 billion, while imports fell 36.4 percent to $2.42 billion, according to the data.

Pakistan is seeking to boost exports to sustain growth in a country where the World Bank estimates two-thirds of the population of 160 million people survive on less than $2 a day.

Pakistan&#8217;s trade deficit narrowed 18.5 percent to $17 billion in the fiscal year ended June 30, from $20.7 billion in the previous 12 months, according to the statistics agency. Exports fell 6.7 percent to $17.8 billion and imports dropped 12.9 percent to $34.8 billion. 


Pakistan&#8217;s Trade Gap Narrows 55.9% in September as Imports Fall


----------



## owais.usmani

*Remittances up over 22pc to record $806.12m​*

KARACHI - Pakistani workers remitted a record amount of $806.12 million in September, as against $660.35 million in the same month of the last fiscal year (September 2008), showing a jump of $145.77 million or 22.07 per cent.
The amount of $806.12m includes $0.08m received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).
This is the third consecutive record amount remitted in a single month during the current 2009-10 fiscal year (FY10). The previous highest amount remitted in a single month by Pakistani workers was recorded in August, 2009, when an amount of $780.53m was received in the country.
During the first quarter (July-Sept) of FY10, an amount of $2.332b was sent home by overseas Pakistanis, showing an impressive 24 percent rise when compared with $1.880b received in the same period last year. The amount of $2.332b includes $0.74m received through encashment and profit earned on FEBCs and FCBCs. The monthly average of remittances in the first quarter of FY10 remained at $777.17m, up 24 percent from $626.62m in the same quarter last year.
The inflow of remittances in the July& September, 2009 period from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $504.01m, $498.76m, $430.75m, $323.87m, $235.08m and $78.27m respectively as compared to $312.18m, $499.65m, $398.02m, $315.37m, $118.57m and $51.78m respectively, in the July& September, 2008 period. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries in the first quarter of FY10 amounted to $260.02m as against $184.18m in the same period last year.
The inflow of remittances into Pakistan from almost all countries of the world increased last month as compared to September, 2008. According to the break up, remittances from USA, UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $181.82 million, $179.84 million, $134.31 million, $112.39 million, $86.59m and $26.15 million, respectively as compared to the corresponding receipts from the respective countries during September 2008, i.e. $179.81m, $110.73m, $133.38m, $108.67m, $43.75m and $19.08m. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during September, 2009 amounted to $84.94m as compared to $64.88m during September, 2008.


Remittances up over 22pc to record $806.12m


----------



## Omar1984

*CM for modern ways to export fish ​*
Karachi: Sindh Chief Minister (CM) Syed Qaim Ali Shah, on Saturday presided over a high level meeting at the Chief Minister&#8217;s House about the affairs of Korangi Fish Harbour Authority (KFHA).

The meeting was attended among others by Federal Minister for Livestock and Dairy Development Mir Himanyun Aziz Kurd, Provincial Fisheries Minister Zahid Bhurgri, Provincial Secretary Fisheries Laeeq Memon, Managing Director Korangi Fisheries Harbour Authority SM Tariq, Secretary Livestock and Dairy Development Mohammad Ali Afridi, Iftikhar Ali Khan and Special Secretary to Chief Minister Sindh Abdul Kabeer Qazi.

The CM said that Pakistan&#8217;s seawaters were very rich and full of food species including fish and prawn. He said that fisheries sector was a big source of earning foreign exchange. The CM stressed the need to adopt modern ways to export fish and other food items.

Shah said that the public-private participation in fish harbour would be encouraged, while proper security for harbour would be made. 

He said that small boat owners should also be allowed to carry out fishing in allocated seawaters so that they could earn the livelihood for their children. Shah said that the City District Government Karachi (CDGK) would provide necessary civic facilities at the harbour.

Earlier, KFHA Managing Director SM Tariq while briefing about the harbour said that the authority was established in 1982 and its affairs were given under the control of Livestock and Fisheries Department.


----------



## Omar1984

*PR to run cargo train from Peshawar soon
​*
PESHAWAR: Pakistan Railways on Wednesday said a cargo train would shortly be operated from the Peshawar dry port which would meet a longstanding demand of the business community.

Additional General Manager Pakistan Railways (Operation), Junaid Qureshi, announced this during a meeting with a delegation of the Sarhad Chamber of Commerce and Industry (SCCI) here.

The SCCI delegation, led by its Vice-President Faiz Muhammad Faizy, informed railway officials of the difficulties being faced by the traders and businessmen in the province due to the absence of facilities at the Peshawar dry port.

They also raised the issue of shortage of wagons under the Afghan Transit Trade (ATT), transit time, construction of a dry port equipped with all state-of-the-art facilities at Azakhel and running of cargo and non-passenger trains from Peshawar to Karachi.

The meeting was informed that lack of facilities at the dry port had forced the traders to rely on trucks and other expensive means of transportation to ship their goods to Karachi and onwards.

The SCCI delegation included Dry Port Standing Committee Chairman Ziaul Haq Sarhadi, while Muhammad Shah and Muhammad Tayyab of Pakistan Railways also attended the meeting.


----------



## eastwatch

South Asian Media Net

Textile exporters lag behind BD, India 
Saturday, October 24,2009 

LAHORE: The textile industry is facing many constraints which are self-inflicted, like absence of research and development and technological backwardness, as well as state-imposed like power and energy shortages, high interest rates, lack of loan restructuring and market access.

A study by The News reveals though Pakistan is the third largest consumer of cotton in the world, its textile exports are less than those of Bangladesh, which consumes one-third of cotton compared to Pakistan. Similarly, Indias textile exports corresponding to its use of cotton are much higher than Pakistan because of higher value addition.

Pakistan has even failed to keep pace with the expansion of the global textile market which, according to Technopak and Werner Analysis, rose from $482 billion in 2005 to $583 billion in 2008.

Pakistans share in global textile exports was a little over 2 per cent in 2005, which declined to 1.8 per cent in 2008. In fact, Pakistans textile exports of $10.57 billion in 2008 were less than the textile exports of Bangladesh, which fetched $11.17 billion.

India exported textiles worth $20.23 billion in 2008, which was double the exports from Pakistan, although at the start of the current century the difference between textile exports from Pakistan and India was around $3 billion.

On the government side, no serious efforts were made to increase cotton production, the basic raw material for the textile industry. In the year 1991-92, Pakistan and India were producing same quantity of cotton at around 14 million bales.

However, Pakistans cotton output has declined to around 11.5 million bales while the Indians are producing over 26 million bales and their production is on the rise.

Pakistan currently imports around four million bales of cotton a year while India which was a net importer at the start of this century is a leading exporter of cotton.

The textile industry faced another drawback due to high prices of polyester staple fibre compared to global rates. This resulted in low consumption of man-made fiber. Currently, cotton to man-made fibre ratio is 80:20 against global average of 60:40.

The nation is paying the price for the short-sighted approach of entrepreneurs which remained content with the money they were making from low value addition and did not initiate research and development work to introduce high value added products. The sector has also suffered due to lack of policy initiatives from the government.

Currently, over 40 per cent of knitwear units are closed while woven garment manufacturing units have also suffered the same fate. According to the All Pakistan Textile Mills Association, 30 per cent of spinning capacity is not operating, causing widespread job losses.

Industry experts say had the entrepreneurs opted for value addition, they could have survived even the most adverse conditions as higher costs associated with high interest rates and soaring electricity, gas and petroleum rates could have been bearable with more value addition. 

With present level of value addition in textiles, it seems impossible for the entrepreneurs to bear the high cost of doing business. The government would have to come up with a viable policy to reduce the high cost of doing business.


----------



## owais.usmani

*Khalifa oil refinery project: UAE decides to go ahead​*
ISLAMABAD (November 16 2009): The United Arab Emirates (UAE) has decided to go ahead with the construction of a 5-billion-dollar oil refinery in Balochistan, officials said Sunday. The refinery with an output capacity of 250,000 barrels per day was postponed in January, due to the global recession and a row over management issues with Islamabad.

"The major contentious issues have been resolved and the project will soon be kicked off," a senior official of Ministry of Petroleum and Natural Resources said. The Khalifa Coastal Refinery project is a joint venture between the Abu Dhabi state-owned International Petroleum Investment Company (IPIC) and the Pak-Arab Refinery Limited (PARCO), which is jointly owned by Pakistan and Abu Dhabi.

PARCO will hold 24 per cent of shares and IPIC the other 76 per cent in the refinery to be built in the coastal area of Hub. The Pakistani government will own 60 per cent of PARCO's share.

According to the official, who spoke on condition of anonymity, PARCO approved initial funding of 500 million dollars as part of its contribution to start the project.

"Out of this total amount, the PARCO board of directors approved immediate release of 13 million dollars to start subcontracting work related to the implementation of the KCR project," he added.

Mehmood Saleem, a senior official in the Ministry of Petroleum and Natural Resources, confirmed that "the project will hopefully be launched" next month, since PARCO had approved the initial funds.

"Now the IPIC and government of Pakistan will finalise the modalities to kick off the project next month," Saleem told German Press Agency dpa. The proposed refinery will produce energy fuels out of Arabian and Iranian crude oil, and its final cost is expected to go beyond 5 billion dollars partly due to the "foreign exchange component," as well as the project expansion plans.

The Pakistani rupee stood at around 60 to the dollar in 2007, when the agreement was first signed, compared to 83 rupees currently. Ahsanullah Khan, Pakistan's former ambassador to Abu Dhabi, said in mid-2008 that the cost estimates of 5 billion dollars for the refinery project would "increase substantially."

It includes a 250-megawatt power generation plant, mini port terminal, an electric power grid station, road network and other necessary infrastructure, he said.

With the completion of the refinery, Pakistan's capacity would be doubled from the current 248,506 barrels per day. Some oil products refined at the new plant would be exported to Pakistan's neighbouring countries, officials said.


Khalifa oil refinery project: UAE decides to go ahead

Reactions: Like Like:
2


----------



## owais.usmani

*Pakistan likely to buy Thai, Brazilian sugar​*
Saturday, November 21, 2009
SINGAPORE/ISLAMABAD: Pakistan is likely to buy Thai or Brazilian sugar as it struggles to ease a supply shortage, while premiums for raws barely moved despite a correction in the futures market, dealers said on Friday.

Pakistan, traditionally the world&#8217;s 9th largest raw sugar consumer, plans to start importing half a million tons of white crystal sugar by December and wants to buy 500,000 of raws through private mills after an expected shortfall in the current crop.

&#8220;It&#8217;s obvious that Pakistan has tried to avoid buying as long as possible but now they are running out of sugar. After a long time of trying to make up their mind, they&#8217;ll buy something at very high prices,&#8221; said a physical dealer in Singapore.

&#8220;They&#8217;ll probably buying a mixture of Thai and Brazilian sugar. Thailand doesn&#8217;t usually have much availability until late January or early February, but I suspect there&#8217;s some white sugar available from the previous crop season.&#8221;

Thai raws, a main source for Pakistan, barely changed from last week&#8217;s levels at 80 to 85 points above New York&#8217;s March contract for March to May shipment, suggesting there was little activity before crushing starts in the new crop season.

&#8220;I guess at those premiums, sugar is expensive for buyers,&#8221; said a dealer at an international trading house in Jakarta.Pakistan faces a shortfall of more than 1 million tons of sugar, which may swell in the second half of next year if it does not rev up purchases, even though sugar prices have rallied to multi-year highs on strong buying from main consumer India and worries about a widening global supply deficit.


Pakistan likely to buy Thai, Brazilian sugar


----------



## owais.usmani

*Swiss companies keen to invest in Pakistan​*
Saturday, November 21, 2009
KARACHI: Consul General of Switzerland Martin Benz has said that some large Swiss companies have shown interest in investing in Pakistan, especially in Karachi.

He was speaking at a lunch hosted by the honorary Consul General of Mozambique, Khalid Tawab, here on Friday. A large number of leading businessmen attended the lunch.He said that a large number of Swiss companies were successfully operating in Pakistan, especially in pharmaceutical business and made huge investments.

He informed the businessmen that Switzerland has already started issuing Schengen visas for European countries. This visa is valid for three years, he added.Khalid Tawab urged the Swiss Consul General to remove hurdles in the way of issuing visa to Pakistani businessmen and industrialists to further strengthen bilateral ties amongst the private sector and promote investment.He also urged him to encourage Swiss businessmen to invest in energy sector projects, especially coal based projects in Pakistan, to end power shortages.


Swiss companies keen to invest in Pakistan

Reactions: Like Like:
1


----------



## Omar1984

*Punjab set to lead in IT 
​*

THE Punjab is set to take a lead in computer technology, as the provincial government has vigorously started the process of establishing computer labs in its schools with an aim to make every student fully computer literate. 

In the first phase it has established computer labs in 4286 of its schools each equipped with 15 seats comprising three desktops Personal Computers and 12NComputing virtual desktops that will impart training to over three million students annually. 

Experts say that introduction of computer labs in the government schools will have a contagious impact. It will force the low end private schools to establish at least similar if not superior computer labs. The Punjab government may even make it mandatory in the next few years for the registered private schools to have computer labs. The introduction of computer knowledge among the children will increase the internet use in the country and expose the unexplored talent of millions who have remained deprived of this modern technology. 

The idea was conceived last year by the planners of the Punjab government, and the budgetary allocations were made in the provincial budget for 2009-10. The News found that the original idea was to procure 15 desktop PCs for each school. However, the government was able to save Rs1.8 billion from its budgeted allocation by adopting the NComputing technology. 

The NComputing solution includes both the virtualisation software (vSpace) that creates the &#8220;virtual&#8221; sessions inside a PC or server, and the thin-client devices that connect the user&#8217;s monitor, keyboard and mouse to the shared computer. Thus one desktop PC can be connected with 4-10 virtual desktops. Thus instead of buying 64290 desktop PCs, the government procured 12858 PCs and supplemented the balance 51432 seats with NComputing devices. 

Punjab Government&#8217;s IT Labs project can change the computing environment, especially in emerging economies like Pakistan. The decision to deploy this IT labs project establishes the Punjab government as an innovator in educational computing in Pakistan and a model for other governments, considering similar projects. 

This project has been successful due to the key factor that the Punjab government is determined to provide maximum number of computer seats at a minimum cost. Through this IT Labs project the Punjab government will not only save nearly Rs. 1.8 billion in up-front and Rs.10 million per month in ongoing costs which translates into more than 360 million over the project life of three years. 

The cost will be saved on energy consumption that 64290 desktop PCs will have consumed. One desktop PC consumes 100 watts of electricity per hour. A virtual desktop installed through NComputing device will consume only 10 watts of electricity per hour that will translate into saving of Rs10 million per month at current electricity rates or Rs 360 million in three years. 

NComputing&#8217;s desktop virtualisation technology has now become a part of the lives of millions people across the world. 

This technology has revolutionised the education system in Macedonia, where every student in that country has a computer at his desk. Similarly in Andhra Pradesh, India, the government deployed NComputing to provide computing access to 1.8 million schoolchildren throughout the state. 

In Pakistan only few highly expensive schools provide each student with a separate computer desk. With the introduction of Ncomputing technology the time is not far when many schools will be doing that. They will simply require for a class of 30 only two desktops and two Ncomputing devices, having 15 virtual desktops each to provide one terminal to each student and the teacher. The learning process will accelerate.


----------



## Omar1984

*US to help Karachi overcome power shortage 
​*
The city was abuzz with business-related programmes last week including the visit of US consul general and promotion of small and medium industries.

US Consul General Stephen G Fakan attended a reception at the Hyderabad Chamber of Commerce and Industry but not at the chamber&#8217;s secretariat but at a club obviously due to security reasons.

In his remarks, the diplomat said the US government wanted to enhance contacts with the people of Pakistan and the US was also supporting Islamabad in the power generation sector. Karachi, the country&#8217;s industrial hub, would become self-sufficient in power generation, he added.

He said US companies were also helping in dairy product processing and technologies were being provided in that regard. He proposed the HCCI should support scholarship for students who could get education in the US for transfer of technology, adding the US consulate would support such an initiative.

&#8220;Modern technology is a prerequisite for making the products acceptable worldwide,&#8221; he said.HCCI President Azizuddin Arain suggested that US companies should invest in power generation, construction, coalmines and food processing and a joint venture should be started.

Other participants of the meeting representing various business sectors said US companies should invest in Hyderabad because of its satisfactory law and order situation.The diplomat also held a separate meeting with District Nazim Hyderabad Kanwar Naveed Jameel, who briefed him about the development work and initiatives for economic activities in the city.

Small and Medium Enterprises Development Authority&#8217;s Sindh Manager Mukesh Kumar also visited Hyderabad during which he announced that a glass products design and development centre was being established for the glass industry of Hyderabad. &#8220;The centre will also impart free training to glass industry workers,&#8221; he said.

The centre is being constructed in collaboration with the Sindh Small Industries Corporation at the SITE area of Hyderabad. It will help introduce new and diverse glass products.

Project Manager Syed Asif Ali Shah said the development centre would start running by June next year and would not only provide information and training but would also help reduce unemployment.

Meanwhile, Sindh Industries Secretary Ali Ahmed Lund, while examining SMEDA projects in Hyderabad, said the authority&#8217;s role in the development of industries was praiseworthy.

He assured SMEDA officials that the provincial government would cooperate and support these projects. At another reception, the HCCI president said participation of delegates in international exhibitions and trade fairs would help boost business prospects of Hyderabad.

journalistadeel@yahoo.com

Reactions: Like Like:
2


----------



## ajpirzada

*Rice export likely to surpass target*

* TDAP, REAP making plans to export 4 million tonnes of rice

By Moonis Ahmed 

KARACHI: The rice export of the country is likely to surpass the target of $2.5 billion set for the current fiscal year 2009-10, as the Rice Exporters Association of Pakistan (REAP) following its strategic policy has started joint efforts to boost exports with different trade authorities. 

Recently, REAP held a meeting with Syed Muhibullah Shah, Chief Executive of Trade Development Authority of Pakistan (TDAP), in which the commodity export plan was reviewed and discussed, Rafiq Suleman, Vice Chairman REAP said. 

He said that the meeting discussed ways and means of increasing export of Basmati, IRRI and parboiled rice from Pakistan to international markets. The meeting noted with satisfaction that rice exports had risen to take second position in export earnings for Pakistan after the textile sector. 

The meeting reviewed the position of existing rice stocks as well as the increased production expected from the new crop coming in the market. &#8220;The TDAP and REAP agreed to work out a joint strategy for achieving export target of 4 million tonnes of rice,&#8221; Suleman said. TDAP would provide full support to REAP in its efforts to achieve this export target. 

Rafiq said that during last four months of the current fiscal year 912,487 metric tonnes non-basmati rice worth $35.59 million has been exported while basmati rice worth $30.64 million has also been exported to different countries. 

&#8220;Our estimate suggests that hopefully we will end the season by exporting more than $2.5 billion worth of rice,&#8221; he said.

Moreover, the State Bank of Pakistan has allowed rice exporters one-time facility of getting financing up to 100 percent instead of 85 percent of the value of firm export order in order to facilitate domestic rice procurement process for exports. 

According to that facility the exporters would be required to make shipments equivalent to 100 percent instead of 117 percent against refinance availed for 270 days from the export of eligible commodities. However, he added that this relaxation would be available to rice exporters only for the current 2009-10 fiscal year. 

He appreciated the 100 percent financing facility from SBP saying that the step taken by the central bank would have a very good impact on the exports. 

He informed that during last week around 103,000 metric tonnes rice worth $37 million has been exported to far-east countries and Saudi Arabia and Dubai. 

The federal government has prepared a five-year strategy for development of agriculture, industrial and services sector on a sustainable basis. 

He said that under the proposed plan the production of rice would be enhanced to 7.5 million tonnes from existing 6.5 million tonnes by the year 2015 and new markets for the export of rice would be explored.

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## ajpirzada

*Production target achievable as ginneries receive 10.43m bales*

By Razi Syed

KARACHI: Around 10.43 million cotton bales reached at the ginneries till December 1 2009 making the prospects for achieving the production target of 12.10 million cotton bales brighter.

&#8220;The crop season will end by the February 2010 while last year stocks stands around 1.85 million bales till December 2, 2009&#8221;, member of FPCCI Cotton Committee, Ghulam Rabbani said Thursday.

He said the lint price crossed Rs 4,400 per maund on Tuesday as the leading buyers made purchases on sensing higher price of the commodity in the international market and better grade of domestic cotton.

According to fortnight arrival report by Pakistan Cotton Ginners Association (PCGA), textile sector during period specified, purchased around 8.85 million cotton bales, private sector exporters bought 627,018 cotton bales while Trading Corporation of Pakistan remained inactive as a second player in the market refrained from participation.

He said the Central Cotton Committee first estimated the cotton production for the year 2009-10 at 13.36 million bales. 

The price of cottonseed (Phutti) is likely to touch another high level in the country on back of increasing demand and lowest prevailing prices in the international market.

The higher price of the cottonseed will push the cotton prices further up in next coming weeks, he said.

The cottonseed price remained Rs 2,200 to 2,300 per 40 kg in the country and is expected to cross Rs 2400 per 40 kg, he added. He said the cotton prices in Pakistan were still 20 percent lower in comparison to the international market as today cotton in domestic market was available at around Rs 4,300 per maund.

The New York Cotton prices touched around 76 cents per pound while China, India, Korea and Bangladesh are eager for Pakistan&#8217;s lint as they consider it the best lint in international market with lower price.

He said the arrival of cottonseed would continue for another month and crop size could be determined by December-end when the arrival would become slower. 

Regarding demand from some textile sectors to ban raw cotton export he said, &#8220;The government should take up this matter seriously and convene a joint meeting of all stakeholders in order to resolve the issue amicably.&#8221;

&#8220;Our domestic coarse yarn is still cheaper in the global market with high quality and available at local market around Rs 32 per pound,&#8221; Rabbani said.

He said in open market economy, there should not be any ban on export or import except ban on import of luxury items.

Around 75 percent of local yarn is used by the value addition sectors in the country and only 25 percent coarse yarn is exported to China, Sri Lanka, India, Bangladesh, Indonesia and Thailand.

Daily Times - Leading News Resource of Pakistan

---------- Post added at 04:17 AM ---------- Previous post was at 04:16 AM ----------

gud news comin on the agriculture front atleast. earlier we had a bumper crop of weat


----------



## white_pawn

*Rice, sugar prices start falling ​*
KARACHI: Prices of various varieties of rice have declined by Rs2 to Rs10 per kg, while supply of sugar from the mills has resulted in some stability in its wholesale rates. 

A wholesale rice trader said that the price of a normal variety fell to Rs48 from Rs50 per kg, while Basmati (ponia) rice is now available at Rs45 as against Rs50 earlier. 

He said the new 386 Punjab variety now sells at Rs35 as compared to Rs40 per kg, Kernal Basmati price fell to Rs75 from Rs80 per kg, while Kernal special Basmati rate has declined to Rs90 from Rs100 per kg. 

A retailer said that Kernal Basmati super rate is now tagged at Rs120 as compared to Rs125 per kg. Irri-6 price fell to Rs24 from Rs26 per kg while Basmati sela rate plunged to Rs95 from Rs115 per kg. 

Shopkeepers said that the prices had declined owing to some declining trend in rice exports from July onwards. As a result ample supplies of various varieties of rice had arrived in the local markets. 

Figures of Federal Bureau of Statistics (FBS) gave a dismal picture of rice export. Pakistans total rice exports (basmati and others) fell by 33.4 per cent in value during July-Oct 2009, fetching only $537 million (809,872 tons) as compared to $806 million (787,222 tons) in the same period of 2008. Basmati exports fell by 51 per cent in value and 33 per cent in quantity to $240 million (228,991 tons) in July-Oct, 2009 as compared to $488 million (342,350 tons) in the same period of 2008.

Exports of other varieties stood at $296 million (580,881 tons) in July-Oct 2009, as compared to $318 million (444,872 tons) in the corresponding period of 2008. 

However, vice-chairman Rice Exporters Association of Pakistan (Reap), Rafiq Suleman said exports had been going up. He claimed that during July-Nov 2009, non-basmati exports went up by 32 per cent to 993,617 tons as compared to 751,770 tons in the same period of 2008. 

Basmati exports, however, went down slightly by six per cent to 372,686 tons during July-Nov, 2009 as compared to 398,327 tons in the same period of last year.

Rafiq added that as exports are picking up, total exports of rice in the current financial year is likely to achieve target of $2.2 billion while in the last fiscal year, exports fetched $2.04 billion. 

Sugar 

The wholesale sugar price is now quoted at Rs51-52 per kg as compared to Rs58 per kg a month back but the retailers are not ready to pass on this impact to the consumers. 

Majority of the retailers are charging Rs60 per kg in many areas, while some are demanding even more than Rs60 per kg. 

Wholesalers said if the supply of sugar from the sugar mills improves further in coming days, the rates would further fall.

DAWN.COM | Business | Rice, sugar prices start falling


----------



## white_pawn

*Ports record 10pc growth despite recession​*
KARACHI: Minister for Ports and Shipping Babar Khan Ghauri said on Saturday that due to financial crunch many ports around the world recorded a negative growth but Pakistani ports overall achieved 10 per cent growth. 

He said that delay in developing link roads and railway line with hinterland kept the Gwadar Port non-functional for a long and ultimately the present government on the directives of the prime minister began to handle public sector cargo. However, the minister stressed that the Gwadar Port should be used for transshipment and for this purpose the government had already started to acquire surrounding land required for the port. 

Babar Ghauri was speaking at the inauguration of the PICT Bridge (phase-I) and said that the federal government would not have any objection if the provincial government like to run the Gwadar Port. 
He said that it was the right of the people of the area to benefit from any such facility and the benefits of all the natural resources should first go to the local people. 

The minister was pleased to know that the Pakistan International Container Terminal (PICT) owned by a Pakistani company has achieved fabulous growth of 200 per cent last year and had also achieved all development targets much ahead of schedule. He said presently there were three container terminals operating in the country, two are run by well-established and reputed foreign operators but the PICT is being run by a Pakistani company, which had performed well. 

However, the minister felt unhappy over the present state of affairs of many institutions and said that a desert country like Dubai only 90 minutes away from Pakistan developed so fast that it became icon and trade hub of the region. But Pakistan which was better placed and at the time of independence got fairly large developed infrastructure is presently lagging behind and most of our institutions have deteriorated. Capt Haleem Siddiqui, chairman PICT said that the terminal was fully financed by IFC and Opec Fund and local bank is involved in funding this project. 

He said the terminal had installed its own scanner and have its power generation system. All equipments which were supposed to be installed much later had been already included in the inventory due to rapid growth of the terminal. Nasreen Haque, chairperson KPT speaking on the occasion said that the Karachi Port is the premier port of the country and has undertaken flagship project of deep water container port with 18 meter draft.

DAWN.COM | Business | Ports record 10pc growth despite recession


----------



## Omar1984

*Food Security: Speakers stress for more investment in NWFP, FATA *


ISLAMABAD: Experts have stressed for increased investment in militancy-hit areas of NWFP and FATA for ensuring food security, which has taken a jolt in the aftermath of the operation against the terrorists.

The World Food Programme (WFP), and government of NWFP arranged a consultative meeting on 'Planning Households Food Security in NWFP and FATA'. Experts stressed for provision of quality seeds and fertilizer as well as other important inputs for enhancing agriculture production in these affected areas.

The province along with FATA areas produced only one third of its food requirements despite the fact that great potential existed for increasing food production. There was inability on part of provincial government to reach farmers with sufficient supply of seeds, fertilizers and other agri related machineries. However, the government has shown its seriousness regarding food security by enhancing allocation for this sector i.e. Rs 715 million in 2009-10 from Rs 315 million in 2008-09. Provincial Relief, Rehabilitation and Settlement Authority Director General Shakeel Qadir said the provincial government is constructing storehouses in different parts for keeping strategic reserves of food items. "We feed 2.5 million internally displaced persons (IDP) of Swat and Malakand in 2009 but the challenge is still not over," he maintained. Now, the South Waziristan IDP problem has arised, which requires emergency assistance. 

For ensuring food security at provincial level, the NWFP government is initiating vulnerability assessment survey soon, which would help the International Financial Institutions for assisting the targeted people. The NWFP government is going to initiate huge agriculture related programmes with the help of Italian government with a cost $3 billion. About safety net, Shakeel said the NWFP government has already initiated Bacha Khan Poverty Alleviation program, and was providing relief activities totally different that of Benazir Income Support Programme (BISP). Under Bacha Khan program, he said multi-Sectoral approach the health, education and other social activities were carried out through involvement of local community. 

Additional Secretary FATA, Habibullah Khan speaking on the occasion said that the FATA was passing through difficult scenario in respect of security and food concerns. He said that FATA was in dire need of humanitarian as well as food assistance. Despite security concerns, a number of line departments as well as international organization including WFP and others were working there. Following these organizations, he stressed for other organisation/departments to work there directly as it was in dire need. The prices of food items were much higher as compared to other parts of NWFP and rest of the country. A number of projects worth $39.04 million are being carried out in NWFP/FATA through financial assistance of EU, and others international organisations. 

The speakers were of the view that producing 24 million tonnes of wheat was not a sufficient indicative for food security. Rather it is the purchasing power of the people which is a better measure of food security. The meeting was informed that vulnerability to food insecurity emerged as an active subject of public debate in Pakistan in the aftermath of the sharp rise in food prices in 2007-08, with food inflation touching nearly 30 percent. Within the subject of food security, attention has begun to move from traditional supply issues to include aspects that determine the ability to access and the ability to absorb food. Further, greater interest was now being focused on hunger and malnutrition, in particular. The evidence was clear on the regionally differentiated nature of the food security problem within Pakistan, with higher degree of food insecurity, including hunger and malnutrition, in the western and southeastern parts of the country. The speakers said that food security was determined by three factors; availability, access and utilisation (absorption). Availability of food was a necessary, but not a sufficient condition for food security. Sufficiency was provided by fulfillment of access and absorption conditions. Availability, access and utilization could be adversely affected by shocks from economic factors, natural disasters or conflicts. ijaz kakakhel


----------



## Omar1984

*&#8216;Marble exports to cross $62m by end of December&#8217; *


KARACHI: The exports of all kinds of marble products will cross $62 million by the end of December 2009, All Pakistan Marble Mining Processing Industry and Exporters Association (APMMPIEA) said Monday.

Around 15 percent growth is expected in the marble sales-both local and international- with local sales contributing nine to ten percent.

"The growth and export depends on the back of construction boom in Middle East and increase in demand from India," chairman, businessman group of APMMPIEA, Sanaullah Khan said.

He said country witnessed around 60 percent increase in export during June-July 2009, which stood at $31.9 million as compared with $19.9 million during 2007-08.

"Export to Dubai and other Middle East countries including Saudi Arab increased as compared to export to USA and European nations during this period," he added.

Demand from India alone is around more than one million dollar every month as India possesses granite but does not have any marble reserves.

He said Federal Minister for Industries and Production, Manzoor Ahmed Wattoo also appreciated the efforts of stakeholders and Pakistan Stone Development Company (PASDEC) for enhancing export.

China is the largest importer of chromite. "It is exported to China at Rs 45 per kg but due to disturbance in the tribal areas our export is jolted," he claimed.

Chromite is a black colour stone and contains around 55 percent steel properties and used in steel making.

He said presently export orders of marble products including tiles and slabs to Middle East, USA, China, Italy, Hong Kong and South Korea are in the pipeline.

There is export potential of about $1 billion in the marble sector. Realising the potential in marble and granite sector, the last government approved in principle the project relating to the establishment of 10 model quarries, two machinery pools and four common facility training centres.

The marble products export was hit by load shedding, as it could not meet set target of $ 60 million in July-June 2009. 

Mining and quarry sector contributes nearly 0.6 percent to Pakistan's Gross Domestic Products (GDP) with an estimated value addition of more than Rs 16.5 billion.

Reactions: Like Like:
2


----------



## Omar1984

*KPT development commitment reaches Rs 60bn in FY &#8216;09 *


KARACHI: The Karachi Port Trust (KPT) in its centuries old history has never seen a development hyperbola as is being implemented now with its development commitment and contracts during the current financial year totalling to an estimated Rs 60 billion. 

This was stated by KPT Chairperson Nasreen Haque on Monday. Crediting the Ports and Shipping Minister Babar Ghouri for these outlays, Haque said KPT is pursuing the land lord port doctrine which helps to better compete with the regional ports and meet the ever growing challenges of the International and Regional Sea-Trade. 

An example of success of the landlord port strategy is PICT, which has made remarkable progress since its inception, she pointed out. 

She explained that a port represents a collection of physical facilities and services designed to serve as an inter-model point between land and sea transport. 

The awareness of actual and potential market possibilities and requirements, flexibility, responsiveness, reliability, friendliness, ancillary services, logistics etc, to mention only a few are nowadays important requirements of the market, she added. app


----------



## Omar1984

*First session of Overseas Pakistanis Forum: Overseas Pakistanis extend full support to Pakistan's challenges *


DUBAI: The first session of Overseas Pakistanis Forum, organised by Pakistan's Ambassador at large Javed Malik and chaired by Federal Minister for overseas Pakistanis Dr Farooq Sattar concluded here on a high note with the overseas Pakistani community expressing their full support to their homeland in these challenging times. 

Delegates from UAE and some middle-eastern countries also took part. 

"The forum provided a platform for the overseas Pakistanis in the region to directly interact with the decision makers, and therefore we invited the federal minister for overseas Pakistanis to listen to their issues," explained Malik who is leading this effort. 

Presidents of all Pakistani associations and business councils in the UAE were represented in the forum and took part in the interaction. The forum started with a presentation by Malik in which he highlighted the issues being faced by overseas Pakistanis. He was critical of the fact that successive governments have wrongly stereotyped the role of overseas Pakistanis only as workers who can simply send remittances. This is not all that they are capable of doing, times have changed and Pakistanis living abroad have acquired positions of affluence and influence, they have gained skills, professional training and resources and many other features in the most influential and rich list of their host countries. All of them are keen to play a role in supporting their country, but there is no framework that allows them to do this. 

They often feel like they are second-class citizens in their own countries. This culture needs to change, and the government must review its policy on overseas Pakistanis as a whole. He also made recommendations on how further opportunities of employment abroad can be utilised to the maximum if adequate training is provided to overseas workers before leaving the country.

Speaking about the issues of Overseas Pakistanis in Dubai, he said that as the population of Pakistanis has increased in Dubai their needs have changed and increased. The Pakistani Schools are not up to the standard and need urgent attention of the Minister and the OPF in improving their standards. Similarly, a Pakistani College and University is greatly needed. He also made the case for establishing a Pakistan Skills and Information Centre, which would operate under the auspices of the OPF to provide facilities to overseas Pakistanis residing here, the centre would also have an Overseas Pakistanis Business Club, which would allow business networking and provide investment advice to those who want to invest in Pakistan through a structured system. 

He also urged the Minister to set up a working group of bankers and finance professionals to work out a fast and transparent way of sending remittances that give a sense of confidence to the expatriate workers, as this would at least double the remittance amounts. The issue of a special housing scheme for Pakistanis living in the UAE also came under discussion.

Speaking on the occasion, Dr Farook Sattar said that he has taken into account the points raised and called on the community to look at the possibilities of public-private partnership opportunities whereas the government would extend its support to the initiatives raised in today's forum. He said that he has high hopes from this forum as it provided him with the advice and the consultation towards issues being faced by the communities at present. He called the overseas Pakistanis a ray of hope for Pakistan and appreciated their role in supporting their country in these challenges. He expressed his full support to the recommendations being made on the forum by its organiser Malik and said that he will ensure that these recommendations are followed and implemented. Prominent Pakistanis based in the UAE were included in the OPF, which was largely attended by businessmen, professionals, academics, and officials of OPF and Pakistani embassies. The next session of the Forum will be in London in March 2010. pr


----------



## Omar1984

*Pak, German firms sign MoU for solar project *


KARACHI: A well-reputed German solar company Azur Solar GmbH has signed a Memorandum of Understanding (MoU) with Raza Impex Pvt Ltd Pakistan during the visit of the Prime Minister Yousuf Raza Gilani to Germany. According to the Board of Investment (BoI) on Monday, the signing ceremony was attended by the officials of German Ministry of Economics and BoI officials. The two companies have agreed to enter a joint venture for installation of a 50 megawatts solar power plant in Pakistan. CEO Bernd Sauter signed the MoU on behalf of Azur Solar whereas CEO Zafar Hussain and Managing Finance Partner Khurram Bilal signed it on behalf of Rafza Impex Pakistan. app

Reactions: Like Like:
1


----------



## Owais

*Remittances rise over 29 percent in first five months *

KARACHI (December 11 2009): Remittances sent home by overseas Pakistanis continued to show a rising trend as an amount of 3.832 billion dollars was received in the first five months (July-November) of the current fiscal year 2009-10, showing an increase of 866.13 million dollars or 29.20 percent over the same period of the last fiscal year.

The amount of 3.832 billion dollars includes 0.93 million dollars received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). In November 2009, an amount of 742.79 million dollars was sent home by overseas Pakistanis, up 19.70 percent or 122.27 million dollars, as compared with 620.52 million dollar received in the same month last year.

The inflow of remittances in the July-November, 2009 period from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to 854.21 million dollars, 797.18 million dollars, 708.35 million dollars, 544.88 million dollars, 408.49 million dollars and 123.90 million dollars respectively as compared to 534.25 million dollars, 767.12 million dollars, 600.25 million dollars, 496.21 million dollars, 188.95 million dollars and 81.02 million dollars respectively in the July-November, 2008 period.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first five months of the current fiscal year amounted to 394.60 million dollars as against 298.39 million dollars in the same period last year.

The monthly average remittances for the July-November 2009 period comes out to 766.52 million dollars as compared to 593.30 million dollars during the same corresponding period of the last fiscal year, registering an increase of 29.20 percent.

During last month, ie, November 2009 remittances from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to 174.98 million dollars, 144.12 million dollars, 134.75 million dollars, 109.65 million dollars, 92.67 million dollars and 21.68 million dollars respectively as compared to 146.16 million dollars, 140.19 million dollars, 105.45 million dollars, 100.74 million dollars, 39.18 million dollars and 15.87 million dollars in November 2008.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during November 2009 amounted to 64.86 million dollars compared with 72.77 million dollars in the same month last year.

It may be pointed out that the State Bank, Ministry of Finance and Ministry of Overseas Pakistanis had undertaken a joint initiative called 'Pakistan Remittance Initiative (PRI)' recently with a view to facilitating the flow of remittances through formal channels. This initiative has started to materialise and remittances through formal channels are showing considerable growth.

Business Recorder [Pakistan's First Financial Daily]


----------



## ejaz007

*NWFP talking to US for massive hydel power projects *
Thursday, January 28, 2010
By Dilshad Azeem

ISLAMABAD: As federal authorities are bent upon obtaining expensive rental power projects, the Frontier government, on the other hand, has sought massive US investment for much cheaper hydroelectric power in the provincial jurisdiction.

We are shortly submitting before the US authorities, the power projects, besides identifying sites for maximum electricity from our province having potential of up to 48,000 megawatts (MW), a member of the NWFPs special body on energy and power told The News. US Special Envoy Richard Holbrooke, US Ambassador Anne W Patterson and US Embassy Economic Wings Ms Robin Raphael are prominent American authorities with whom the Frontier government contacted and received an encouraging response.

In the latest round, we held discussions with Ms Robin Raphael after holding detailed sessions with Patterson and Holbrooke with one-point agenda of developing hydropower resources in our province, Awami National Party (ANP) Senator Haji Muhammad Adeel confirmed.

Adeel, a member of the provincial special committee on energy and power, has been tasked by Chief Minister Amir Khan Hoti and the ANP to bring in US investment up to the maximum after the provincial industry stood destroyed amid the war on terror.

I held a meeting with Ms Raphael of the economic wing in the US Embassy on Tuesday and apprised her of discussions with Anne Patterson and Holbrooke who had called for a spade work with her about the electricity projects, the senator maintained.

Replying to a question, he said the whole roadmap, including potential sites and already worked-out projects, would be presented to her soon after the committee meeting. These hydropower projects with generation capacity from 50-100 MW have the potential to cover a large population of the province, including those in Hazara, Malakand, Swat, and Mansehra.

We will provide a comprehensive action plan to the US authorities for availing the investment opportunity, as there are thousands of such schemes, the senator added. The ANP senator said the chief minister as well as his party was fully backing him while initiating the task to explore power projects and clinch heavy investment. Due to serious financial constraints, our province direly needs such schemes.

The ANP leaders say once talks start, the federal government would be involved as power is a federal subject. Haji Adeel was optimistic that these schemes would provide employment opportunities for the people of the province. I do not think we will face any problem, was his response when asked about the sovereign guarantees of the Pakistani government the investor would require.

As far as our approach is concerned, we want to give priority to the private sector to avail the opportunities, get their business flourish and ultimately contribute to the progress and prosperity of the province, Adeel concluded.

NWFP talking to US for massive hydel power projects


----------



## ejaz007

*AEDB and GE arranging turbines for wind energy projects*

ISLAMABAD: Alternate Energy Development Board (AEDB) has announced on Wednesday that US Overseas Private Investment Corporation (OPIC) and their leading wind turbines manufactures, M/s General Electric (GE) and AEDB have jointly devised a mechanism under which, the OPIC financing would be linked with the GEs long-term operations and management contracts. 

An AEDB statement stated that as per estimates, Pakistan possesses power generation capacity of over 350,000 megawatts through wind energy alone. However, such an immense potential could not be explored mainly due to difficulties in acquiring wind turbines and arranging suitable financing facilities. 

After having identified these two major barriers in the growth of wind energy sector in consultation with all the public and private sectors stakeholders, AEDB has been approaching various national and international agencies to facilitate the investors in securing required finances and wind turbines. 

In the back drop of US interest in promoting RE sector in Pakistan, as a part of their overall energy assistance programme, AEDB also approached the US public sector project financing agency, OPIC and their leading wind turbines manufactures, GE for offering financing options and arranging turbines for the wind energy projects in Pakistan.

Under this mechanism, the OPIC financing would be linked with the GEs long-term operations and management contract, which is scheduled to be presented to the local investors at an orientation seminar being organised today (Thursday). Over 20 potential investors, interested in setting up wind power projects from across the country are expected to attend. AEDB Chairman and Federal Minister for Water and Power Raja Pervez Ashraf is expected to conclude the seminar. staff report

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*Etisalat to pay $800 million for PTCL stake*

DUBAI: Pakistan will receive a payment of $800 million by the end of March from the UAEs Etisalat for a stake in Pakistan Telecommunication Company Limited (PTCL), Federal Minister for Privatisation Senator Waqar Ahmed Khan said on Wednesday. 

In 2006, Etisalat, the Gulf Arab regions second-largest telecom firm, signed an agreement to purchase a 26 percent stake in PTCL for $2.6 billon, but so far only $1.4 billion has been paid, due to problems linked with a transfer of 3,000 real estate units. 

Under the contract, the government agreed to transfer the properties before Etisalat made the full payment. We have agreed on a framework with Etisalat by which the transfer of $800 million will happen by the end of March ... the property issues will be resolved soon, the minister said. 

In December, Etisalat said the remaining $1.2 billion would be paid in equal instalments over a period of 4.5 years in consideration for certain corresponding deliverables by the Pakistani counterpart. Etisalat declined to comment on the agreement. 

It remains unclear whether Pakistan has decided to give the telecom giant a discount. Khan declined to comment on the remaining $400 million. 

We want to resolve all the issues with this deal and move on to privatising other companies and we just want this to be a good example to lead by in the future, Khan added. reuters

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*Dutch company to establish LNG terminal at Port Qasim*

ISLAMABAD: The government has granted approval to the Dutch company-4Gas-to establish floating LNG terminal at Port Qasim, Minister for Petroleum and Natural Resources Naveed Qamar said on Wednesday.

Addressing a press conference, the minister said that the commission to the LNG terminal operator would not be more 50 cents per mmbtu, which also includes the rent of the floating terminal.

However, he said that the floating terminal technically called the Floating Re-gasification Supply Unit (FRSU) would be operational for five years and later a fixed terminal would be established to cater to the long-term imports of liquefied natural gas (LNG) in Pakistan. 

The rent of FRSU is up to $200 million per annum as the floating terminal is a temporary arrangement for five years and after five years the company will establish a fixed terminal at Port Qasim. 

The cost of land-based terminal is between $700 million and $800 million, the minister said. The government would provide sovereign guarantees to the LNG suppliers. The FRSU would have the capacity to handle 3.5 million tonnes LNG, which amounts to 500 mmcfd natural gas, while the capacity of land-based terminal would be higher. 

The guarantees are not in form of letter of credit or any other documents liable for bank loans but we would just guarantee that SSGC would be the purchaser of LNG for 20 years. He said that supplies would start from December next year and both the parties required the time of almost one-year.

Apart from the arrangements to be made by the terminal operator, the SSGC has to establish pipelines and other infrastructure at the selected point at Port Qasim to transfer imported gas to its main system. He said that the government was negotiating prices with the GDF-Suez and Shell LNG, as these two companies have expressed commitments to supply LNG for 20 years. 

While, the minister declined to inform about the price difference between the two main contenders, sources in the Inter State Gas System said that the price quoted by GDF-Suez was $1 per tonne cheaper than the price quoted by Shell LNG.

The GDF-Suez was a French firm looking for interests in the region, while the Shell LNG was the operator partner of Qatar Petroleum, one of the largest LNG suppliers of the world. Shell LNG had strong presence in the region, including a large LNG terminal in Gujrat, India. 

Qamar is scheduled to meet the top management of both the companies in Islamabad on Thursday (today) for final price negotiation. The minister said that there is no government-to-government contact between Pakistan and Qatar. Qatari government has said that we have to deal through Shell LNG, the minister said and added that the price of the LNG would be linked with the price of Brent crude. He also said that at average it would be higher than the cost of gas to be procured through the Iran Pakistan gas pipeline. 

The minister also said that work is in progress over the IP gas pipeline project and there is no opposition for the security agencies and the US government to abandon the project. I had a meeting with Overseas Private Investment Corporation of US along with the US ambassador and they did not object to import of gas from Iran, the minister said. ijaz kakakhel

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*US energy firm looking to invest in oil and gas sector *
Staff Report

ISLAMABAD: CEO of Hydrocarb Corporation from USA, Kent P Watts, expressed interest in exploring and producing oil and gas in unexplored and under-explored areas in the country.

He was talking to Minister of Petroleum and Natural Resources Syed Naveed Qamar on Wednesday. The minister said he looked forward to companies investing in terms of their expertise and technology, as the exploration and production (E&P) sector was fairly underutilized. He said the present policy entailed transparency and a level playing field for all in addition to offering many incentives for investors and operators.

Qamar informed Watts that a tremendous opportunity existed in the upstream sector adding that venturing into difficult areas could yield high returns. He said that taking on board stakeholders especially the indigenous ones was key to success.

Chief Operating Officer of the Hydrocarb Corporation Pasquale V Scaturro also accompanied the CEO. 

Meeting with CGEP: Separately, Qamar met a delegation of the Citizens Group on Electoral Process (CGEP), formed by the Pakistan Institute of Legislative Development and Transparency.

The delegation apprised the minister that its members, with no present affiliation with any political party, were working to promote electoral reforms and for the development of electoral rolls in Pakistan. The interactive meeting focused on developing accurate, complete and up-to-date electoral rolls in Pakistan as an important aspect of the electoral reforms process.

The minister reaffirmed his commitment to ensuring preparation of accurate, complete and up-to-date electoral rolls. He emphasized on clearing the whole process so as to eliminate any chances of bogus voting. He said technology was available and could be utilized effectively adding that in the presence of the NADRA the need of any duplicate database seemed no more necessary. The status and amendments to various electoral laws also came under discussion. The delegation comprised Lt Gen (R) Moinuddin Haider, Arif Nizami (former editor of The Nation), Mujib-ur-Rehman Shami (editor in chief, Daily Pakistan), Shahid Hamid (former governor of Punjab), Ahmad Bilal Mehboob (ED, PILDAT), Aasiya Riaz (joint director of PILDAT).

Daily Times - Leading News Resource of Pakistan


----------



## oct605032048

Wind mills set up in Punjab to generate power



Sunday, January 17, 2010
By Jawwad Rizvi

KALLAR KAHAR: A Chinese company, in a bid to tap the potential of wind power in Punjab, has set up four wind mills with a total capacity of producing 50 kilowatts of electricity.

Sunec Wind Power Generation (Pvt) Ltd of China has installed the wind mills in a model wind power generating farm at Pochal Khurd, 20 km from Kallar Kahar. After successful operation and getting desired results, the company will set up a 2.5-megawatt wind farm which may be operational this financial year.

Earlier, the Alternative Energy Development Board had identified a 165km-long wind energy corridor in Punjab which started from the famous tourist resort of salt range Kallar Kahar and ended at the valley of Soon Sakesar.

In the first phase, the Chinese company has completed installation of wind mills in the model farm. It is working on setting up 2.5MW-capacity wind mills by May and has plans to increase the mills that could generate 50 megawatts of power.

Talking to The News, Sunec Wind Power Generation Pakistan Director General Najib Ahmed Sharif, during a visit to the model farm, said the wind farm was situated on a mountain range 28,680 feet high, the second highest in Punjab after Murree.

Six Chinese engineers and technicians have been engaged in the project over the last one year. Najib said the total cost of the model farm was Rs27.5 million, adding work on the 2.5MW farm was in full swing as turbines had arrived from China which would be installed by the end of May.

Of the four wind mills currently installed, three have power generating capacity of 10 kilowatts each while one can produce 20 kilowatts.

Documentation process was also under way and that would be completed in the next two weeks, he said, adding the company had submitted a tariff petition to the National Electric Power Regulatory Authority (NEPRA). A power generation licence would also be awarded to the company in 15 days, he added.

Talking about the technical side of the project, he said minimum cut-in wind speed at the site was 2.4 to 3 MS (1 MS is equal to 3.6 km per hour) and maximum cut-out speed was 25 MS, equal to 120 km per hour. Thus, wind power would be generated easily.

Available historical data of the area showed that smooth winds blew throughout the day so there would not be any problem in generating wind power, he added. Najib pointed out that the Chinese would make all investment in the wind power project.

Sunec is a wind generating equipment maker in China and also sets up and operates wind farms there. The company is also working on cheap and durable solar energy solutions in Pakistan.

About problems faced by the company in setting up and running the project, the company director general said they could not be able to supply the power generated from the farm to the Pakistan Electric Power Company (PEPCO) due to load-shedding and were compelled to stop the wind mills. Because of that, he added, one turbine was damaged and the company imported the turbine again from China.

Similarly, he said, undue delay in approval of projects by different departments despite submission of all required documents was also hurting the investors who wanted to invest in the energy sector of Pakistan.
Wind mills set up in Punjab to generate power


----------



## hazi

Pakistan State Oil Q2 profit at 3.18 bln rupees


KARACHI, Feb 17 (Reuters) - Pakistan State Oil (PSO) (PSO.KA) reported on Wednesday a second quarter net profit of 3.18 billion rupees ($37.4 million), compared with a net loss of 1.67 billion rupees in the same period of the last fiscal year.

Net sales in the October-December quarter were at 180.94 billion rupees, compared with 145.68 billion rupees in the corresponding quarter last year, the company said in a statement to the Karachi Stock Exchange.

PSO shares were trading 1.05 percent higher at 303.10 rupees at 0848 GMT in a broader market which was up 1.11 percent.


Pakistan State Oil Q2 profit at 3.18 bln rupees | Markets | Reuters


----------



## ajpirzada

*Current account deficit narrows by 69 percent* 
RECORDER REPORT
KARACHI (February 18 2010): The country's current account deficit has narrowed down by some 69 percent in first seven months of current fiscal year mainly due to huge remittances and considerable decline in the trade deficit. The State Bank of Pakistan on Thursday said the country's current account deficit has declined by $5.569 billion during the July-January of fiscal year 2009-10, as compared to same period of last fiscal year.

With current decrease, the country's overall current account deficit has narrowed down to $2.487 billion in the first seven months of current fiscal year as compared to a deficit of $8.056 billion in the same period last fiscal year. Overall deficit including trade, services and income stood at $10 billion against the current account transfers of $7.577 billion in July-January of fiscal year 2009-10.

With $17.562 billion goods imports and $10.945 billion exports, overall goods trade deficit stood at $6.617 billion during first seven months of current fiscal year as compared to $9.078 billion in corresponding period of last fiscal year.

Services sector presented a significant improvement and services sector deficit stood at $1.731 billion with $2.12 billion exports and $3.851 billion imports in July-January of current fiscal year as compared to deficit of $2.438 billion in the same period of last fiscal year. Similarly, income deficit also declined to $1.658 billion during the period, as during July-January altogether income from abroad stood at $310 million as compared to payments of $1.968 billion to the overseas.

Statistics show current account deficit without official transfers reached $2.605 billion during the first seven months of fiscal year 2009-10 as compared to $8.172 billion in the same period of last fiscal year. Month-on-month basis current account deficit has also presented a better performance and during the month of January 2010, the country registered a current account deficit of $473 million.
Business Recorder [Pakistan's First Financial Daily]


----------



## ajpirzada

*Pakistan on path of economic recovery: IMF*

WASHINGTON: Pakistan&#8217;s economic growth has started to recover despite security and energy challenges and the country met almost all targets under the International Monetary Fund program, the global financial institution said on Tuesday.

&#8220;Pakistan&#8217;s program is progressing well,&#8221; the Fund said in a statement following &#8216;constructive discussions&#8217; with Pakistani officials focusing on Pakistan&#8217;s recent economic performance, the outlook for the rest of the fiscal year.

Adnan Mazarei, who met with the Pakistani officials in Dubai over the past week to initiate discussions on the fourth review under Pakistan&#8217;s Stand-By Arrangement (SBA), noted that Islamabad observed all quantitative performance criteria, except for the budget deficit target, which exceeded by a small margin.

Listing positive trends Pakistan registered in recent months, the Fund said the exchange rate has remained stable at Rs 84&#8211;85 per US dollar, and the international reserves position has strengthened (the banking system&#8217;s gross foreign exchange reserves, including the State Bank and commercial banks, reached $14.3 billion in mid-February, of this total, the State Bank held $10.5 billion).

The early signs of recovery in some sectors and the improved external position are encouraging, although there are risks and challenges to Pakistan&#8217;s economic program.

&#8220;Economic growth in Pakistan is starting to recover; large-scale manufacturing output has started to increase, the improvement in the global economy has helped manufacturing exports, and private sector credit growth has picked up to some extent as businesses rebuild their working capital.

The IMF&#8217;s package for Pakistan - approved in November 2008- has been extended to $11.3 billion. Looking ahead, the IMF statement said, a resumption of higher growth is needed to raise living standards and will require improvements in the business climate to stimulate higher investment by local and foreign investors. 

Emphasizing the need for stepped up donors support for the key anti-terror partner of the international community, the Fund said, early disbursement of donor financing remains crucial to support Pakistan&#8217;s stabilisation and reform efforts as well as laying the basis for a sustainable growth.

The IMF mission staff will prepare a report on the fourth review under Pakistan&#8217;s SBA, which is scheduled for consideration by the IMF Executive Board in late March. app

Daily Times - Leading News Resource of Pakistan


----------



## ajpirzada

*BISP reducing poverty*

By Faheem Hajazi 

The poor and underprivileged people of Pakistan have been suffering due to lack of a comprehensive social protection system. It goes to the credit of the present government that has launched the Benazir Income Support Programme (BISP) as a tool for enacting a comprehensive social safety net, catering to the needs of the &#8216;poorest of the poor&#8217; of the society, not just in terms of assisting them with cash for everyday commodities, but also enabling them to graduate from the vicious cycle of poverty. This includes micro-finance credit, vocational training and health insurance cover. 

Let us have an overview of the BISP, and what has been done and what is being done in terms of social protection. The BISP is the main social safety net programme by the government of Pakistan, which began with an initial allocation of Rs 34 billion ($425 million) for the year 2008-09. The amount was the third largest allocation in the total budget, and was 0.3 percent of the GDP for the year 2007-08.

The programme aims at developing a poverty-reduction strategy that takes into its ambit social assistance like health and skill development, in addition to cash transfers. It was initiated in response to the rising inflation and the global economic recession of the last few years, and to offset its impact on the purchasing power of the poor. The allocation for the year 2009-10 is Rs 70 billion, which will be used to provide relief to 5 million families. The programme is expected to cover 7 million families in the medium term by the year 2010-11. Around 36.1 percent of the total population of Pakistan is living below the poverty line, according to an estimate in 2008-09, which reveals that 62 million people (11.83 million families) are sufferings from poverty.

A cash grant of Rs 2,000 to each family is disbursed every alternate month, and covering 5 million families in 2009-10 means paying cash benefits to almost 16 percent of the total population. The BISP covers all four provinces, as well as Gilgit-Baltistan, FATA, AJK and the Islamabad Capital Territory. 

The inclusion and exclusion criteria were devised and application forms were distributed through parliamentarians in equal numbers, irrespective of party affiliations. Data entry, data verification and the eligibility criteria were applied by NADRA through the management information system. A final list of eligible beneficiaries was prepared by NADRA in the form of database. The list of eligible beneficiaries is communicated to the Pakistan Post in an electronic form and money orders of Rs 2,000, which are distributed every alternate month at the doorsteps of the beneficiary. With the sole purpose of empowering women, only the female head of the family or adult female can be the recipient. In order to lend more transparency and objectivity to the programme, the government decided to reform the targeting process to minimise the inclusion and exclusion errors and give equal chance to everyone for applying to the programme. Therefore, the beneficiary identification through parliamentarians was stopped on April 30, 2009. The World Bank-approved instrument named &#8220;poverty scorecard&#8221;, based on proxy means testing, has been adopted and a nationwide poverty survey has been planned to identify the poor families.

Under the Waseela-e-Haq, BISP beneficiaries are pre-qualified through a computerised draw (random selection) for award of a cash loan of Rs 300, 000 each. This one-time loan is conditional and the beneficiary will have to spend it for some income-generating purpose. The amount will be recovered in easy monthly instalments, spread over a period of 15 years. The draw is held each month. Four draws have been held so far, and about 3,000 families have been pre-qualified. Their progress in the business activity is also be monitored and technical assistance is provided to make the transition as smooth as possible. The BISP is also implementing an emergency relief package for the internally displaced persons of FATA, Swat (Malakand Division) and earthquake affectees of Balochistan. A total of Rs 28 million has been paid to 3,965 families in FATA and Bajaur. A total of Rs 26 million has been paid to 3,729 earthquake-affected families in Balochistan.

The distribution of BISP benefits to 318,126 IDP families of Swat and Malakand has started through Benazir ATM cards. The BISP benefits will be paid from April 2009 to March 2010 at the rate of Rs 1,000 per month. By that time, the BISP plans to start a poverty survey in the areas. Amount of Rs 3.82 billion will be paid to the IDPs during the current Financial Year. Inspired by the vision of Benazir Bhutto, BISP endeavours to provide mother-like shelter to the poor section of the society. I would humbly like to say that the BISP, in a short time, has gained the support and universal acceptance not only in Pakistan, but across the world. BISP envisages becoming a comprehensive safety net for the poor of the society that will ensure their transition from a state of dependency to self-sufficiency.

Daily Times - Leading News Resource of Pakistan


----------



## ajpirzada

*Massive single day inflow of FIPI witnessed 
RECORDER REPORT*
KARACHI (February 18 2010): A massive single day inflow of $6.1 million of foreign investors' portfolio investment (FIPI) at the local equity market was witnessed on February 17, 2010. "The positive developments on political front encouraged the offshore investors to take fresh positions at the local equity market", analysts said.

According to National Clearing Company of Pakistan Limited (NCCPL) date, the foreign investors bought shares worth Rs 637.86 million while they sold shares worth Rs 119.91 million on Wednesday. The cumulative inflow of this mode of investment has increased to $15.340 million during the first 17 days of the current month as compared to a net inflow of $4.1 million witnessed in the month of January 2010.

Business Recorder [Pakistan's First Financial Daily]


----------



## ejaz007

*IGI Insurance declares 25% dividend*

KARACHI: IGI Insurance Ltd has posted an after-tax profit of Rs 263.996 million during the year ending December 31, 2009, and declared a final dividend Rs 2.50. According to the results dispatched to Karachi Stock Exchange (KSE) here on Wednesday, the pre-tax profit touched Rs 364,766 million during the period under review compared to a loss of Rs 404.103 million in 2008. The earning per share stood at Rs 4.41 in 2009 compared to a loss per share of Rs 6.30 in 2008. app

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*ACCI-KCCI sign MoU for to establish joint chamber*


KARACHI: A meeting between the high officials of Afghanistan Chamber of Commerce & Industry (ACCI) and Karachi Chamber of Commerce & Industry (KCCI), regarding establishment of Pak-Afghan Joint Chamber of Commerce & Industry, was held at KCCI, for deliberation on the organization of Pak-Afghan Joint Chamber, its operational plan of activities and formation of Executive Committee and General Assembly. In the 1st meeting of Pak-Afghan Joint Chamber of Commerce & Industry (PAJCCI), held at KCCI- Karachi, the renewed Memorandum of Understanding was signed by Vice Chairman of Afghanistan Chamber of Commerce & Industry, Khan Jan Alokozay and President Karachi Chamber of Commerce & Industry, Abdul Majid Haji Muhammad, on Wednesday, February 3, 2010. Other counter-signatories of the renewed MoU are President of Sarhad Chamber of Commerce & Industry, Riaz Arshad and President of Chaman Chamber of Commerce & Industry, Haji Kamaluddin Kakar. The President-KCCI and Vice Chairman-ACCI jointly stated that they are optimistic that Pak-Afghan Joint Chamber of Commerce & Industry, comprising of representatives of leading chambers of both countries will make deliberations for mutual interest of Pakistan and Afghanistan. Director Public Relations ACCI, Rohullah Ahmadzai, former Presidents KCCI, Anjum Nisar, A.Q. Khalil, Senior Vice President KCCI, Rasheeduddin Rashid and Vice President KCCI, Javed Ahmed Vohra also participated in the meeting. The renewed MoU as subsequent to the Memorandum of Understanding of 21st December 2009 for establishing PAJCCI focuses on bringing the business communities of both the countries closer. staff report

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*Ministry, PPL sign deals for two new exploration blocks *
Staff Report

KARACHI: The Ministry of Petroleum and Natural Resources (MPNR) signed and awarded two ELs/PCAs to Pakistan Petroleum Limited (PPL) for Kharan West (Block 2763-4) and Dhok Sultan (Block 3371-15). 

In this context, Syed Naveed Qamar, Minister for Petroleum and Natural Resources directed to expedite exploration to sign at least 35 Exploration Licenses (ELs) and Petroleum Concession Agreements (PCAs) within three months period and make all possible efforts to bring the discoveries into production for addressing immediate energy needs of public. 

Petroleum Policy 2009 provides liberal incentives to Exploration and Production (E&P) companies to attract investment and accelerate exploration of hydrocarbons in the country. 

In light of the Ministers directions, the Ministry has already signed eight ELs/PCAs on February 16 and another ten ELs/PCAs were signed with nine E&P companies including four multinational companies.

Earlier, MPNR awarded ELs to PPL for Gambat South, Jungshahi, Kharan East and Kharan. PPL signed another block as a joint venture (JV), Sukhpur, which would be operated by Eni. Shell is the other JV partner in this block. The minimum financial commitment in the block that is located south of Zamzama field is $5.06 million.

As a result of recent bid round, PPLs exploration portfolio comprises 35 exploration blocks after the recent bid round. Of these, PPL operates 20 and has working interest in 15 more exploration areas, including three offshore blocks as non-operating partner.

Secretary Petroleum and Natural Resources, Kamran Lashari, Director General Petroleum Concessions, Mohammad Naeem Malik and Chief Executive Officer and Managing Director PPL, Khalid Rahman signed the licences and the Petroleum Concessions Agreements. 

Kharan West (Block 2763-4) and Dhok Sultan (Block 3371-15) span an area of 2,487.37 and 703.23 square kilometers, and are located in Washuk District, Balochistan and Attock, Kohat, Chakwal and Mianwali districts, Punjab, respectively. 

PPL proposes to operate these two blocks with 100 percent working interest. The minimum investment being committed by the company during the first three years of the initial licence term for Kharan West is $1.01 million and that for Dhok Sultan is $5.05 million.

Dhok Sultan block is located in western Potwar area and is surrounded by several oil and gas discoveries/fields including the significant discoveries in Tal and Nashpa blocks to the east.

Moreover, PPL plans to acquire about 350 kilometers 2D seismic and drill a deep exploratory well to test multiple reservoirs. In Kharan West, which is located in a frontier region, the program is to first acquire gravity / magnetic survey for regional evaluation followed by about 350 km 2D seismic to firm up a drillable prospect. 

Preparations are in-hand to carry out the huge work program commitment in the new blocks including several thousands line kilometer and square kilometer of 2D and 3D seismic and drilling of a number of exploratory wells, besides advance geological and geophysical studies.

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*ICI Pakistan announces highest-ever dividend *

KARACHI: ICI Pakistan Limited announced a final dividend of Rs 4.50 per share for the year 2009. Dividend for the year is 23 percent higher than last year and the highest ever. Earnings per share showed a growth of 9.8 percent at Rs 14.73. Consolidated profit after tax is 21.4 percent higher than last year. staff report

Daily Times - Leading News Resource of Pakistan


----------



## Gin ka Pakistan

KSE bullish, Index up 97 points Updated at: 0244 PST, Thursday, February 18, 2010
KARACHI: Hectic buying improved prices of leading scrips at Karachi Stock Exchange (KSE) Wednesday as 100 Index gained 97.41 points to close at 9867.09.

A dealer at a leading brokerage house said that market was bullish in the morning on buying spree on the meeting of Prime Minister and Chief Justice Supreme Court and expected positive outcome of their meeting on Wednesday and Index more than 150 points.

However, the market fell on profit taking but remained in thepositive zone. Market will bounce on Thursday, he hoped.

The turnover volume was high at 201.222 million shares as 235scrips advanced and 158 sustained loss while 25 remained unchanged.

The market capitalization was improved by Rs 27 billion to Rs2.839 trillion.

Worldcall was the volume leader with a turnover of 29.292 million shares followed by Lotte Pak 13.993 million shares, OGDC 8.721 million shares, DG Khan Cement 7.229 million shares and TRG Pak 6.668 million shares.
KSE bullish, Index up 97 points - GEO.tv


----------



## Parashuram1

There seems to be such good levels of investment in Pakistani economy by foreign companies.. but could someone here highlight as to why the inflation rate in your country is so exceptionally dangerous (was sometime back) while the currency and economy have till now gone down so badly in the middle? 

Thanks.


----------



## ajpirzada

Parashuram1 said:


> There seems to be such good levels of investment in Pakistani economy by foreign companies.. but could someone here highlight as to why the inflation rate in your country is so exceptionally dangerous (was sometime back) while the currency and economy have till now gone down so badly in the middle?
> 
> Thanks.



increase in gov spendin due to terrorism has made it difficult for the gov to afford subsidies and is now withdrawing it, therefore leading to inflationary pressure.
previous gov did not invest in power sector leading to massive load shedding over last two years. this has affected production as well. 
then terrorism has also affected our economy. over all loss due to terrorism stands at 35$ bn.


----------



## alirulesall123

I don't understand why the upper class of Pakistan doesn't try and actually expand the economy. They'll get re-elected, not to mention that they'll make more money through bribes and kickbacks, and all that other BS. everybody wins!

sort of.


----------



## ejaz007

*EDB seeks establishment of Exim Bank in Pakistan*
Staff Report 

ISLAMABAD: Stakeholders of engineering sector on Monday have underlined the need of establishment of Exim Bank in Pakistan for increasing export of their products. 

This was suggested in a meeting held Monday at Engineering Development Board (EDB) in connection with formulation of National Engineering Export Development Strategy (NEEDS). It was presided over by Mian Sohail a leading exporter of engineering goods and convener of the group. 

In his opening remarks, he emphasized availability of cheap financing for improving the export of the sector. It was observed that most of countries including competing economies had established Exim banks to support and facilitate the trade. 

Being specialized in this domain Exim banks provide fast tract services and address various problems of the trade including financing project expertise and export refinance etc. It was noted that exporters in engineering industry were essentially small and medium. 

A number of companies fall in the micro domain. Majority of vendors including automotive industry, oil and gas sector, surgical and cutlery sectors have no access to formal financing due to lack of substantial collateral or acceptable securities. It was also discussed that the SME bank may be restructured to provide soft terms loans with easier financial cost to small vendors and to support the industry for making them export competitive.

The stakeholders also suggested to take steps for restoring existing and potential investors confidence for easy supply of money through investment corporations. The industry demanded that capital goods leasing might be provided on concessionary basis. A separate pool of LMM for heavy engineering sector and review of bankruptcy laws were also recommended. Other suggestions included alternate instruments of financing like venture capital and private equity funds. 

The meeting was attended by senior officials of State Bank of Pakistan, Securities Exchange Commission of Pakistan, Pakistan Business Council, Engineering Development Board including Asad Elahi CEO and leading exporters of engineering industry.

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*IMC announces 50% dividend*

KARACHI: Indus Motors Company (IMC)) has posted a higher profit after tax of Rs 1.366 billion during the second half of the year ending 31st December 2009 and announced an interim cash dividend of Rs 5 per share. According to the results despatched to Karachi Stock Exchange (KSE) here Tuesday, pre-tax profit of the company has surged to Rs 2.102 billion as earning per share also jumped to Rs 17.38 compared to Rs 2.07 same period last year. app

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*Pakistan, GE sign MoU to produce 54,000 megawatts by 2020*

ISLAMABAD: The government has signed a Memorandum of Understanding (MoU) with General Electric (GE) in the Prime Minister House to help promote the modernisation of Pakistans infrastructure and economy.

Saleem H. Mandviwala, Chairman Board of Investment and Nani Beccalli-Falco, President and Chief Executive Officer of GE International singed the MOU on behalf of the government of Pakistan and General Electric Company respectively.

The prime minister welcomed the initiatives of General Electric to support Pakistans national objective for development. He expressed the democratic governments commitment of making Pakistan a trade, investment and financial hub.

This is a landmark day that we have signed the MoU with one of the most renowned conglomerates of the USA, and this will certainly open another productive era of economic ties and people to people contacts, the Prime Minister said.

The agreement focuses on the development of Pakistans energy resources to meet projected demand of 54,000 megawatts by the year 2020. General Electric is helping build the energy, water, transportation and technology infrastructure of the new century, says Nani Beccalli-Falco, President and Chief Executive Officer of GE International. There are huge synergies between the products and services GE businesses provide in energy and infrastructure and the needs and goals of Pakistan to modernize its economy with cleaner, more efficient and better infrastructure technologies. GE has similar agreements with a number of other governments, including Kazakhstan, Nigeria, Qatar and the province of Ontario, Canada.

The government of Pakistan aimed to meet projected energy demands using diverse sources and tactics. Possible solutions include renewable sources, such as, wind, solar, geothermal, biomass, coal, hydro and conventional thermal through gas and steam turbines, rehabilitation of existing power generation facilities, along with transfer of technology for manufacture and repair of turbines, developing more efficient and environmentally sound rail transport systems, developing water purification and reuse, wastewater treatment, and process system programs. 

According to the MOUs terms, GE would assist Pakistan in achieving its goals by engaging in Pakistans energy, transportation and water sectors and would work to identify potential sources of funding and explore potential investment opportunities in those sectors. Pakistan has committed to meeting with GE regularly to facilitate the goals of the MoU and provide support to the establishment and operation of the GE facilities in Pakistan, transparently and consistent with the laws and regulations of Pakistan. Pakistan would also facilitate the issuance of work permits and visas for the GE employees and contractors as needed in order to support the objectives of the signed MOU. staff report

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## Hyde

*Pakistan, GE sign MoU to produce 54,000 megawatts by 2020*

hahaha hamari Government bhi chorne main Indian media se kam nahi hai

Reactions: Like Like:
1


----------



## ejaz007

*220MW KESC project to be opened tomorrow*
By Ijaz Kakakhel

ISLAMABAD: The government is going to inaugurate the first ever power addition of 220 MW to Karachi Electric Supply Corporation Limited (KESC) tomorrow (Friday).

The addition will be made through Combined Cycle Power Plant, located in Korangi, owned and operated by the KESC. The plant will be run by both furnace oil as well as natural gas, subject to availability of either. However, preference will be given to gas. 

Abraaj has now taken over the project from Siemens, which signed the contract for it in January 2007 against $185 million. The plant consists of four high efficiency gas turbines, one steam turbine and other equipment. All equipment is brand new and mostly imported, official in the Ministry for Water and Power told Daily Times on Wednesday. 

According to the contract, plant was to be completed in various phases. Target for commercial operation for the plant was December 2008. The officials claimed that the installed gas turbines LM6000 were one of the highest efficiency gas turbines available. The first two gas turbines were commissioned in November 2008 and the other two in March 2009. 

They said that the steam turbine was commissioned in July 2009 and almost 88 Pakistani engineers, technicians and plant operators trained on the latest technology. 

They said power was lifeline for development and the government was focusing on this sector on priority bases. Karachi being the economic and commercial hub of the country was playing a very special role in industrial growth and economic boom overall, they said. 

The theft of electricity and nonpayment of dues were the biggest reason for bringing the KESC and other utilities under crises, they said. Its a vicious cycle. Theft or nonpayment resulted in lack of resources, which affect investment in the system, they said.

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## ejaz007

*OGDCL records Rs 28.493bn profit in 1HFY10 *


KARACHI: Oil & Gas Development Company Limited (OGDLC) recorded Rs 28.493 billion net profit in first half of the current fiscal year, down 11 percent from Rs 31.781 billion in the same period of last year. The net profit translated into Rs 6.62 earnings per share against Rs 7.39 in the same period last year, a decline of 10 percent YoY, company announced at Karachi Stock Exchange (KSE) on Wednesday. Companys net sales remained flat to Rs 72.633 billion in July-December 2009-10 against Rs 71.940 billion in the corresponding period of previous year. Analysts said top line growth came in flat despite a period of tapered pricing and volume slippage mainly due to retrospective inclusion of Qadirpur Wellhead prices for 2008-2009. Surge in exploration expenditure clocked in at 35 percent YoY due to a series of dry hole write-offs for the review period. Other income dropped 61 percent YoY due to lower returns on cash balances as well as exchange gains recorded last year. The company also announced an interim an interim cash dividend for the quarter ended December 31, 2009 at Rs 1.50 per share i.e.15 percent. This is in addition to interim dividend already paid at Rs 1.00 per i.e.10 percent. staff report

Daily Times - Leading News Resource of Pakistan


----------



## Stealth

*Istarhan kay projects ke opening ka may apnay bachpan say sun raha ho aaj tak bas sun he rahay hain ....

Aur ye baat meray baray bhi mujhe kahchukay howay hain lol *

Reactions: Like Like:
1


----------



## ajpirzada

well to be honest two three new powerplants became functional last year. so probably you are not following such projects


----------



## ajpirzada

*220 MW KESC project to reduce crisis in Karachi*



Friday, February 26, 2010
ISLAMABAD: Federal Minister for Water and Power Raja Pervez Ashraf has said addition of 220 MW power plant to the Karachi Electric Supply Company (KESC) system will help reduce the gap between demand and supply in Karachi. 

The government is going to inaugurate the first ever power addition of 220 MW to the KESC today (Friday). The federal government had over two years ago asked the KESC to invest in the company and install new power plants to bridge the gap between demand and supply. 

The minister held a number of meetings with the KESC administration and its owners and asked them to fulfil their commitment and set up their own power plants. The government facilitated the company to establish the Korangi power plant. The addition will be made through Combined Cycle Power Plant, located in Korangi, owned and operated by the KESC. The plant will be run by both furnace oil as well as natural gas, subject to availability of either. 

*This is the fourth power plant being inaugurated by this government. Three plants were inaugurated in the Punjab for Pepco system. The Korangi power plant will exclusively supply power to Karachi.* The government is utilising all resources to overcome the power crisis. 

He said new IPPs of 1,000 MWs will be added to the national grid by June next. The consumers will observe a better summer this year as compared to the previous year, he added. The theft of electricity and non-payment of dues were the biggest reason for all the power utilities, he said. Theft or non-payment resulted in lack of resources, which affect investment in the system, he added. 

220 MW KESC project to reduce crisis in Karachi

Reactions: Like Like:
1


----------



## Hyde

we need big Plants now..... like 1000MW each....... Nuclear plants are more preferred

these 100-200MW plants do make a difference but not much in long term considering the high demands we will be facing in 2020. Our electricity demands will increase by 200&#37; at least by that time and it may worsen the condition if appropriate steps not taken today

Reactions: Like Like:
1


----------



## Spring Onion

*Pakistan eyes five billion dollars in foreign investment *

ISLAMABAD: *Pakistan aims to attract foreign investment worth five billion dollars this year, but needs to tackle reform, maximise anaemic growth and stem rampant violence to clinch its ambitious target.*Last fiscal year, Pakistan recorded its worst economic growth in more than a decade, at two per cent, and attracted only 3.7 billion dollars in investment.

Yet Board of Investment chairman Saleem Mandviwalla is optimistic despite Pakistan's immense challenges.

&#8220;Traditionally the investment pace that we had kept &#8212; which was an average of five billion dollars a year &#8212; I think we should be able to go back to it very soon depending on if the global situation improves,&#8221; he told AFP.

&#8220;Pakistan faces the global crisis which is going on, the financial crisis, the energy crisis and then on top of these we have the security situation,&#8221; Mandviwalla, who is also a state minister, conceded.

Security has plummeted in Pakistan over the last three years with militants on the rampage, killing more than 3,000 people in bomb attacks to avenge the government's alliance with the United States in the war on Al-Qaeda.

Then there is the crippling energy crisis. Power cuts have become routine all year round, choking industry and causing misery for millions.

&#8220;With these conditions prevailing on us, which is terrorism and energy shortages, this stops us from really moving the investment the way it should come in,&#8221; Mandviwalla acknowledged.

While Pakistan languishes behind regional giants India and China, Mandviwalla takes comfort from the fact that his country, with its relatively advanced infrastructure, does better than other developing countries.

Close ally the United States has tripled non-military aid to Pakistan to 7.5 billion dollars over the next five years, spurring hopes that the cash can boost economic growth and improve security.

&#8220;We have to market Pakistan, we have to overcome the local issues,&#8221; Mandviwalla said, highlighting opportunities in energy generation, agriculture and infrastructure.

The top three countries providing foreign direct investment (FDI) so far this fiscal year are the United States, with 347.5 million dollars, Britain, 119 million dollars and the United Arab Emirates, 121.8 million dollars, according to the Board of Investment.

The biggest investments flowed into oil and gas, communications and information technology, and power generation, its documents said.

The investment board touts success stories such as investment from mobile phone operators Orascom (Egypt) and Telenor (Norway), Japan's Toyota, Citibank, Standard Chartered Bank and consumer product giant Procter & Gamble.

The board recently signed a memorandum of understanding with General Electric to identify energy, power, transport and water projects.

Azmat Ranjha, the minister for trade in the Pakistani embassy in Washington, acknowledged that investment from the United States &#8212; the country's largest trading partner &#8212; had slipped because of the security concerns.

But he said it was largely a matter of perception and pointed to fresh investment by large US companies with long experience in Pakistan such as Coca-Cola and Procter & Gamble.

&#8220;If you're a start-up, the perception you get once you read all these newspapers is that it looks fairly scary,&#8221; he said.

&#8220;But those familiar with the region know that most of the problems are in the north near Afghanistan while most industry is in the central and southern part of the country.&#8221; Economic analyst Salman Shah said the five-billion-dollar target would be achievable if the government focused more on boosting the economy's disappointing growth rate and lowered interest rates to single digits.

&#8220;To achieve the five billion dollars investment, the BOI has to work hard, conduct roadshows and accelerate the privatisation process,&#8221; he said.

&#8220;Another important thing is the economic growth. With just two percent growth rate, it is difficult to attract the investors.&#8221; Despite the 7.5 billion-dollar US aid package, Ranjha said it was crucial for the United States to lift tariff barriers. Proposals to help Pakistan by liberalising trade have been stuck in Congress.

&#8220;If the United States wants to hold our hand on the path to the development, there is no better way than by providing market access and that hasn't really happened,&#8221; he said.&#8212; AFP


----------



## ejaz007

*Expo Pak receives orders worth $80 million*
Staff Report 

KARACHI: Expo Pakistan, which concluded on February 28, 2010 has generated $80 million worth of business orders for the domestic entrepreneurs with most of the orders coming from Yemen, South Korea, Hong Kong, Malaysia and Kenya.

Besides, some delegates from other countries have indicated willingness for joint ventures with Pakistani entrepreneurs, Trade Development Authority of Pakistan (TDAP) claimed on the conclusion of the mega trade event.

Chief Executive TDAP, Syed Mohibullah Shah met with various delegations from foreign countries at Karachi Expo Centre and said Yemeni delegation has signed 19 contracts worth $20 million for the purchase of rice, petroleum products, textiles and garments and surgical items. Similarly, negotiations for four more contracts are in progress, he added

He said Hong Kong delegation has also signed four contracts, while six orders are in the final stage of negotiation. Kenyan delegation has finalised four contracts with Pakistani exhibitors while four agreements are being negotiated.

Shah said Malaysian delegation has shown keen interest in enlarging free trade agreement (FTA) with Pakistan and expand number of items under trade. He said Brazilian delegation has also expressed keen desire to have joint ventures with Pakistani partners in chicken based food items.

Moreover, South Korean delegations are negotiating contracts for the purchase of cosmetic items, hand knotted carpets, cotton yarn and surgical items. They are also interested in having joint ventures to have biogas and bio fuel facility in Karachi.

He said foreign buyers have shown keen interest in the handicrafts of Pakistan, which are being displayed for the first time at Expo Pakistan 2010. A very large buying house from France for various super markets has told me to make a bulk purchase of some handicraft items which are being displayed at Expo Pakistan, he added. He said TDAP would hold seminars for these exhibitors in the near future to further expand their production capacity and designing expertise so that they can be able to meet export targets.

Shah said these exhibitors have been given the space free of cost at Expo Pakistan and also an allowance to encourage them to come to this mega exhibition.

He said trade delegations from Argentine, Japan, USA, Malaysia, Sweden and South Korea have met him on the second day.

Shah said Expo Pakistan was the outstanding success in the backdrop of global recession, disturbed law and order situation in the country and reluctance of foreign buyers to visit Pakistan in the presence of travel advisories from their countries.

He pointed out that top bosses and senior executives of large companies with huge turnovers and suppliers of 400 super stores have come to Expo Pakistan this year.

He added handicraft sector has attracted a lot of attention from foreign buyers and generated sufficient orders. This sector needs support, he added.

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*Car assemblers earnings rebound in 4Q 2009*
By Moonis Ahmed 


KARACHI: One sector in Pakistan that has recovered sharply from the economic downturn is Auto sector, as car manufacturers after facing tough times, have posted recent recovery; thanks to gradual restoration of consumer confidence as local economy is slowly recovering.

Compared to 4Q2008, where all car assemblers posted losses (except for Indus), 4Q2009 was far better in terms of profitability, as total earnings of the sector stood at Rs 490 million compared to profit of Rs 1 million last year. The turnaround in earnings is primarily caused by 27 percent rise in sales to Rs 23.7 billion driven by 34 percent growth in car sales, Muhammad Sohail analyst at Topline Research said. 

Gross margin of the sector stood at 4 percent compared to gross losses last year. Previous year gross margins were affected, as car assemblers were hesitant to increase car prices amid downturn in economy and weak consumer confidence. However, car prices are relatively higher by an average of 3 percent compared to last year despite 5 percent cut in excise duty (on cars above 850cc). Thus, companies some how passed on the impact of steel prices (up 9 percent in YoY) and rupee devaluation (up 9 percent). 

Hondas (9 percent share in car sales) earnings remained in red due to higher financial cost and lesser margins. Pak Suzuki on the other hand, posted rebound in earnings to Rs 43 million versus loss of Rs 12 million last year. Though, gross margins stood positive at 2 percent compared to gross loss last year, they are still lower than historical trend where average margins were 9-12 percent in last 5 years. 

Indus Motors was the star performer with 429 percent growth in earnings in 4Q2009 led by higher volumetric sales (up 16 percent), better gross margins (up 425bps) and higher other income (up 240 percent).

Daily Times - Leading News Resource of Pakistan


----------



## hazi

Asia, Africa emerge as new trade partners

KARACHI: The results of the 3-day Expo Pakistan--2010 has changed country&#8217;s trade profile by receiving higher business orders from Asian, South American and African buyers. 

For the last 60 years, country&#8217;s traditional trade partners had been US and Europe but business deals recorded by the Trade Development Authority of Pakistan during the Expo have completely changed the demography of country&#8217;s trade. 

TDAP chief executive Mohibullah Shah talking to Dawn on Monday said that at the conclusion of the mega fair deals worth $80 million were recorded, while others are under way. Some joint ventures and investment avenues are also being explored by the foreign visitors. 

Giving some details about the outcome of the expo the TDAP chief said that it was amazing to know that the larger volume of business orders up to 40 per cent were placed by the Asian buyers, followed by Africans at 26 per cent. Export orders placed by the South American buyers stood at around 16 per cent and from US between 5 to 8 per cent. 

Mr Shah hoped that since large number of export orders are still in the pipeline the total volume could reach to $130 million compared to $45 million orders recorded in last expo. 

The global recession, he said, has shifted markets and with increasing purchasing power Asia has become major market for Pakistani products with countries from the Gulf, the Middle East, China, Iran, Turkey, and South Korea in the lead. Against this Europe has become number two and US the third for Pakistani exports. 

There is also a visual shift in demand because engineering goods, surgical instruments, hospital equipment and handicraft are in greater demand from these countries. Egypt and East African countries are showing keen interest in motorcycles, CNG rickshaws and electric fans. 

Many foreign delegates have expressed keen interest to invest in sectors like water treatment plants, low-cost housing, wind and solar energy and electric power generation. 

However, he said the most fascinating development of the Expo Pakistan was the demand for 10,000 English teachers and 300 professors from Romania. This shows that in service sector Pakistan can also play a major role in many countries.

Reactions: Like Like:
1


----------



## hazi

http://www.tehrantimes.com/index_View.asp?code=215151D8 plan common brand car
Tehran Times Economic Desk

TEHRAN -- The developing eight countries (D8) agreed to jointly produce a car under a common brand name, the D8 automotive specialized working group chairman said here on Monday. 

The Moj news agency quoted Mohammadreza Roshani-Moqaddam as saying that the D8 member states currently produce around 5 percent of cars in the world. 

Iran, Bangladesh, Egypt, Indonesia, Malaysia, Nigeria, Pakistan, and Turkey are the D8 member states which took part in the 5th meeting of working groups on industrial cooperation in Tehran from February 28 to March 1. 

&#8220;The D8 would be a suitable market for the car,"" the official said adding, the produced car could even be exported to other countries. 

&#8220;Since Iran, Turkey, and Malaysia are the only member countries that have car manufacturing factories, the common brand car will be designed by these three,&#8221; he explained. 

According to him, economic justification studies will be completed in 6 months and the plan will be followed up in the next D8 meeting in Istanbul. 

Following the &#8220;Conference on Cooperation for Development&#8221;, on October 22, 1996, and after a series of preparatory meetings, the establishment of D8 was announced officially by the Summit of Heads of State in Istanbul, on June 15, 1997. 

The objectives of D8 are to improve developing countries' positions in the world economy, diversify and create new opportunities in trade relations, enhance participation in decision-making at the international level, and provide better standards of living


----------



## Hang em High

hazi said:


> http://www.tehrantimes.com/index_View.asp?code=215151D8 plan common brand car
> Tehran Times Economic Desk
> 
> TEHRAN -- The developing eight countries (D8) agreed to jointly produce a car under a common brand name, the D8 automotive specialized working group chairman said here on Monday.
> 
> The Moj news agency quoted Mohammadreza Roshani-Moqaddam as saying that the D8 member states currently produce around 5 percent of cars in the world.
> 
> Iran, Bangladesh, Egypt, Indonesia, Malaysia, Nigeria, Pakistan, and Turkey are the D8 member states which took part in the 5th meeting of working groups on industrial cooperation in Tehran from February 28 to March 1.
> 
> The D8 would be a suitable market for the car,"" the official said adding, the produced car could even be exported to other countries.
> 
> Since Iran, Turkey, and Malaysia are the only member countries that have car manufacturing factories, the common brand car will be designed by these three, he explained.
> 
> According to him, economic justification studies will be completed in 6 months and the plan will be followed up in the next D8 meeting in Istanbul.
> 
> Following the Conference on Cooperation for Development, on October 22, 1996, and after a series of preparatory meetings, the establishment of D8 was announced officially by the Summit of Heads of State in Istanbul, on June 15, 1997.
> 
> The objectives of D8 are to improve developing countries' positions in the world economy, diversify and create new opportunities in trade relations, enhance participation in decision-making at the international level, and provide better standards of living


That's good news but i don't like industrial projects running under a bureaucracy. I am not shouting 'Long Live Adam Smith' but look at all the projects run under bureaucracy, they are all plagued by in-efficiency. All businesses need some kind of leverage in-terms of creativity and risk taking. Normally hierarchical organizations don;t allow that kind of leverage. In any formal officer-subordinate relationship everything must be put in black and white. That's good if you want to save yourself for some inquiry or something like that... but paper [or computer screen for that matter] doesn't allow for the transfer of complete idea. Secondly, in hierarchical structures there are many procedures and approvals and proving everything to people who know nothing about what you have to say, which not only frustrating but also also increase the lag time for the idea to reach market. [lag time = time an idea take from the brain of the originator to the market or consumer]. D8 will be better off establishing an independent organization and leaving it alone for some time [lets say 5-8]. [No offense intended] but haven't we seen what happened to Pakistan Steel Mill, Pakistan Locomoto and LCA Tejas, when bureaucrats try to be business men.

Reactions: Like Like:
1


----------



## ajpirzada

Zaki said:


> we need big Plants now..... like 1000MW each....... Nuclear plants are more preferred
> 
> these 100-200MW plants do make a difference but not much in long term considering the high demands we will be facing in 2020. Our electricity demands will increase by 200% at least by that time and it may worsen the condition if appropriate steps not taken today



nuclear plants are always the best option but the problem with them is the initial cost of capital which tends to be significantly high for a country like pakistan.


----------



## ajpirzada

*&#8216;Govt to appoint adviser to PM on finance instead of finance minister&#8217;*

ISLAMABAD: The government will appoint an adviser to the prime minister on finance instead of a full-fledged finance minister, State Finance Minister Hina Rabbani Khar said on Tuesday. Talking to reporters at the Parliament House, she said the appointment would be notified within the next two days. &#8220;It is likely that Prime Minister Yousaf Raza Gilani will keep the finance minister&#8217;s portfolio, while the Finance Ministry will be overseen by his adviser who is expected to be chosen from the private sector,&#8221; she said. According to sources, Nasim Baig, the head of a private bank, tops the list of the possible options for the position. The other prominent person among those being considered for the adviser&#8217;s post is Dr Hafiz Pasha, the Economic Advisory Council chairman. staff report 

Daily Times - Leading News Resource of Pakistan


----------



## ejaz007

*Forex reserves grow to $14.803bn*
Staff Report 

KARACHI: Pakistans foreign exchange reserves have increased to $14.803 billion in the week ended February 27, 2010 as compared to $14.37 billion in the previous week, the State Bank of Pakistan said on Thursday.

The overall reserves have witnessed an increase of $43 million during the week. Reserves held by the SBP stood at $10.96 billion, up from $10.52 billion a week earlier, showing an increase of $44 million. However, reserves held by commercial banks after declining by $1 million stand at $3.83 billion as compared to $3.84 billion previous week. Foreign reserves hit a record high of $16.5 billion in October 2007, but fell steadily to $6.6 billion by November 2008, largely because of a soaring import bill. An International Monetary Fund emergency loan package of $7.6 billion agreed in November 2008 helped avert a balance of payments crisis and shore up reserves. 

The IMF increased the loan to $11.3 billion in July and the central bank received a fourth tranche of $1.2 billion on December 28, 2009.

Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## Omar1984

*3 million tonnes surplus wheat stock this season ​*
* Country has enough stock to meet the current seasons requirements

By Ijaz Kakakhel

ISLAMABAD: The country has 5.061 million tonnes wheat stock on March 1 while last year in the same month it was 1.157 million tonnes, showing that the country has enough wheat to meet the current season requirements, official data seen by Daily Times has revealed. 

It said the country will have 3 million tonnes surplus wheat stock this season. Out of total 5.061 million wheat stock on March 1, PASSCO has 1.015 million tonnes, Punjab 3.458 million tonnes, Sindh 0.323 million tonnes, NWFP 0.182 million tonnes and Balochistan has 0.083 million tonnes. While last year on the same date, PASSCO had 0.007 million tonnes, Punjab 0.870 million tonnes, Sindh 0.058 million tonnes, NWFP 0.160 million tonnes and Balochistan had 0.061 million tonnes, the data revealed. 

Officials in the Ministry for Food and Agriculture said that the country was much comfortable keeping in view the stock position and expected new crop. They also claimed about 3 million tonnes wheat stock would be carried forward for next season and expressed hope that there would be no shortage of the commodity. 

Total wheat production remained 24.3 million tonnes last year with government procurement of 9.233 million tonnes. Punjab procured 5.783 million tonnes, Sindh 1.216 million tonnes, NWFP 0.090 million tonnes, and PASSCO procured 2.144 million tonnes. 

The government has made allocation and lifting plan for wheat in 2009-10 from PASSCO to provinces and departments. According to the data, PASSCO has released 1.085 million tonnes wheat out of total scheduled releases of 1.762 million tonnes and 0.677 million tonnes still lift unreleased. 

According to the scheduled PASSCO has allocated 0.450 million tonnes for NWFP for the whole year 2009-10 and till March 1 0.333 million tonnes has lifted and 0.117 million balance is lift. 

Total allocation for Balochistan is 0.150 million tonnes and all the quantity remained in tact. For AJ&K, the PASSCO allocated 0.350 million tonnes and till March 1, it has lifted 0.276 million tonnes and 0.073 million tonnes balance remained. Total allocation for Gilgit Baltistan, the PASSCO allocated 0.150 million tonnes fur the current year and till March 1, it has lifted 0.136 million tonnes and 0.013 million tonnes balance lift. Total allocation from PASSCO to Pak Army for the year 2009-10 is 0.200 million tonnes and up to March 1, it has lifted 0.163 million tonnes while 0.036 million balance is remained un-lifted. For Pak Navy, total allocation from PASSCO is 0.016 million tonnes in which it has lifted 0.001 million tonnes and 0.014 million tonnes balance remained un-lifted. The government allocated 0.015 million tonnes wheat for Pak Air Force from PASSCO in which it has lifted 0.002 million tonnes till March1 and about 0.008 million tonnes. For Utility Stores Corporation of Pakistan, PASSCO has allocated 0.202 million tonnes and nothing has been lifted till March 1 2010. 

For World Food Programme, PASSCO has allocated 0.194 million tonnes wheat in which it has lifted 0.173 million tonnes till March 1 and 0.021 million tonnes balance has to be lifted in the remaining days. For SAARC Food Bank, PASSCO has allocated 0.040 million tonnes wheat for 2009-10 but nothing has been lifted till March 1 and the whole quantity was kept in stock of the PASSCO. 

Province wise average price of 20-kg flour was observed in Punjab (17 cities) at Rs 579 per 20-kg bag, Sindh (7 cities) Rs 627 per bag, NWFP (6 cities) 598 per bag, Balochistan (4 cities) Rs 624 per bag, AJ&K Rs 670 per bag, and its national average (35 cities) is Rs 607 per bag.


----------



## Omar1984

*Construction sector: Pak, Sri Lanka to work jointly ​*
KARACHI: The builders and developers of Pakistan and Sri Lanka with joint efforts and sharing each other&#8217;s expertise can play a pivotal role in promoting the construction of both the countries, Sri Lanka Consul General VS Sidath Kumar said. There has been a considerable increase in the trade between the two countries, he said this while expressing his views at a meeting held ABAD House Friday.

He recommended ABAD members to actively participate in the International Exhibition to be held in Sri Lanka from September 10 to September 12 this year. staff report


----------



## Omar1984

*Industrial areas to be given 80&#37; of tax recovery for infrastructure uplift ​*
KARACHI: The Sindh Ministry of Commerce and Industry has decided to spend 80 percent of the tax recovery from any industrial area in the same area to improve its infrastructure.

Sindh Minister for Commerce and Industry M A Rauf Siddiqui at launching of the flagship magazine 'Voice of Industry', highlighting the activities of SITE Association of Industry, assured industrialists that the government would provide them all faculties to keep their units operative with peace of mind. 

He said the provincial government has provided Rs 250 million each for infrastructure development of four industrial zones of the city including Federal B Area, Korangi, North Karachi and Landhi, while the federal government had also assured to provide matched grant, which has not been disbursed so far.

Commenting on the foreign investment the minister said Saudi Arabia had purchased valuable land here for cultivation and to launch agro-based projects in Nawabshah. 

The water pipeline project at Nooriabad Industrial Area would be completed in next three months and construction of a bridge would facilitate all major roads inside SITE Area besides repairing 14 roads in the heart of SITE Karachi are underway, he informed.

Referring to the industrial units established on sewerage drains, he said these units were established in the tenure of the previous governments, and added that removing these units has become almost impossible. 

He said he would use some modern techniques to open the gutter lines and natural nullahs so that the flow of dirty water and effluent does not stop and continue to drop into the Lyari River and sea. 

He also assured industrialists he would not tolerate harassment of industrialists by inspectors of various departments. Industrialists are carrying out production activities in a very difficult time. 

He expressed hope that President Asif Ali Zardari would soon direct the concerned authorities to disburse the allocation amount of Rs 250 million each for four industrial zones in the city. 

SITE Association of Industry Patron-in-Chief Siraj Kassam Teli ensured the bottlenecks in the infrastructure improvement projects are removed in the national interest and specially for Sindh province otherwise we would be no where. Adviser to Sindh Chief Minister Zubair Motiwala said concrete measures were being taken to reduce cost of doing business. staff report


----------



## Omar1984

*Rise in forex reserves takes KSE into the green zone ​*
KARACHI: Bulls continued to dominate the Karachi stock market on the last trading day of the week Friday on support of rise in foreign exchange reserves to $14.8 billion and agreements on access of Pakistan&#8217;s quality goods to European markets, which helped boost investor confidence. 

The Karachi Stock Exchange (KSE) 100-share index gained 114.76 pts or 1.21 percent to close at 9,626.29 points as compared to the previous session&#8217;s 9,511.53 points. The KSE 30-share index closed at 10,101.48 points with a rise of 132.70 points. The KMI 30 closed at 14,411.42 points with an increase of 199.26 points. 

Analysts said the market opened in the green zone and it remained in the buoyant mood throughout the trading session in the wake of continued foreign investment in the market 

The market turnover went down by 2.24 percent and traded 157.22 million shares as compared with the previous session&#8217;s 160.83 million shares. The overall market capitalisation was up by 1.17 percent and traded Rs 2.753 trillion as against Rs 2.721 trillion of the previous session. Out of a total of 378 companies, 250 closed in the positive zone, 107 in negative and 21 remained unchanged. 

&#8220;The market continued Thursday&#8217;s bullish trend due to speculation that a default in payments of a corporate group was resolved, which strengthened the investor confidence,&#8221; said TopLine Sec analsyst Farhan Seth. &#8220;Moreover, handsome buying by foreigners during this week further boosted investor confidence. NBP and Lotte Pakistan led the volumes due to better corporate results.&#8221; &#8220;Bullish activity was witnessed on renewed foreign interest in oil and gas and banking sectors,&#8221; said Shahzad Chamdia Sec senior analyst Ahsan Mehanti. &#8220;Other major factors were investors taking positions in oversold blue chips scrips and higher international oil prices.

&#8220;Confidence building measures being taken by the government like those which include meeting of interior minister with the business community and expected address of the PM to the nation, infused hopes regarding announcement that will help stabilise the political situation,&#8221; said Aziz Fida Husein and Co analyst Husnein Asghar Ali. &#8220;Renewed buying interest was witnessed in blue chips and second-tier stocks, mainly in the stocks, which have witnessed massive price erosion in the previous sessions.&#8221; 

While the low priced, Lotte Pakistan currently trading with topping of payout invited huge turnover, by both jobbers as well as investors allowing the stock to lead the volume. The KSE 100-share index opened in the green zone with a gain of 6.17 points and at the end of the day closed at 9,626.29 points with a gain of 114.76 points. Lotte Pakistan was the volume leader with 19.78 million shares as it closed at Rs 10.11 after opening at Rs 9.85, gaining 26 paisas. staff report


----------



## Omar1984

*KSE rises 115 points as foreigners inject $10m ​* 
KARACHI: The continued massive foreign buying worth $10 million in this single session helped the Karachi bourse restoring above 9,600 points level on Friday. Under the lead of exploration stocks, the energy sector attracted big part of the day fresh investment on trading floor.

The KSE 100-share Index increased gained 114.76 points or 1.21 per cent and closed at 9,626.29 points. Its junior partner the 30-Index surged by another 132.70 points or 1.33 per cent and concluded at 10,101.48 points.

With the day $10.05 million aggregated buying by foreign portfolio investors, the investment by the foreigners for the week has surged to $27.5 million. This would be worth mentioning here that foreigners remained net buyers in all the five trading sessions of the week, according to NCCPL.

The local companies, individual investors and banks/DDFIs appeared as panic sellers during the session and sold shares worth $4.05 million, $3.34 million and $2.51 million, respectively.

The two notable exploration stocks i.e. Oil & Gas Development Company (OGDC) and Pak Petroleum Limited (PPL) contributed 17 points and 12 points, respectively, on the key benchmark 100-Index.

The other gainers included their points on the said benchmark in single digits. More important to note was the point that blue chips did not only managed to close in green territory, but they also ranked up among the day top volume generators.

The day turnover lowered to 157.22 million shares against 160.83 million shares changed hands yesterday. Turnover in future market, however, surged to 7.13 million shares from 4.58 million shares traded a day earlier.

The overall market capitalisation soared by Rs32 billion to stand at Rs2,753 billion.

Analysts Ahsan Mehanti said that bullish activity was witnessed on renewed foreign interest in oil, gas and banking sectors. Investors took positions in oversold blue chips scrips.

Rise in foreign exchange reserves to $14.8 billion, agreements on Pakistan quality goods access to European markets, higher international oil prices and SBP allowing due diligence to Faysal Bank for RBS acquisition played a catalyst role in positive activity on KSE, he added.

Analyst Farhan Seth said that local bourse continued bullish trend due to speculation related to a default in payments of a corporate group resolved which strengthened the investors&#8217; confidence. Moreover, handsome buying by foreigners during this week further drove the sentiments of the local investors. National Bank and Lotte Pakistan led the volumes due to their better than expected corporate results announcement.

Analyst Hasnain Asghar Ali said that confidence building measures being taken by the government including meeting of interior minister with the business community and scheduled address of the prime minister on Friday evening to the nation infused hopes that PM would announce something related to stabilize political issues besides addressing various issues giving birth to uncertainties.

What added spice was the consistent inflow by the off-shore participants (although it is not a dependable indicator, it did inspired the locals) the developments came in as a sentiment equalizer.

Renewed buying interest was witnessed in front line and side board stocks, mainly in those stocks, which had witnessed massive price erosion in previous sessions. While the low priced i.e. Lotte Pakistan currently trading with topping of payout invited huge turnover, thus allowing the stock to lead the volume.

Out of total 378 active stocks, 250 stocks advanced, 107 stocks declined, while the value of remaining 21 stocks closed unchanged. 

Highest volumes were witnessed in Lotte Pakistan at 19.78 million closing at Rs10.11 with a gain of 26 paisa, followed by National Bank at 18.29 million closing at Rs92.99 with a gain of 44 paisa, JS Company at 8.50 million closing at Rs23.20 with a gain of Rs1.10, AH Securities at 8.07 million closing at Rs45 with a gain of Rs1.71, and Azgard Nine at 6.24 million closing at Rs17.87 with a gain of Re1.


----------



## Omar1984

*PSO, KPT plan oil pipeline connecting Keamari with PQ ​*
KARACHI: Pakistan State Oil (PSO) and Karachi Port Trust (KPT) on Monday signed a Memorandum of Understanding (MoU) to jointly undertake a study to connect Keamari with Port Qasim through a white oil pipeline.

The study would lead to a joint venture pipeline project between the two organizations, which would result in a more effective and efficient mechanism of meeting the energy demands of the nation.

The MoU was signed by Irfan K Qureshi, MD PSO and Nasreen Haque, Chairperson KPT at a ceremony held at the PSO House. Speaking on the occasion, Irfan Qureshi congratulated the teams of the PSO and the KPT on this initiative and described the project as of great strategic importance in terms of enhancing operational efficiency at the ports. 

&#8220;It is expected to facilitate smooth handling of fuel oil for power segment and also result in a more secure and flexible mechanism for POL operations&#8221;, he said. The present POL handling capacity of Keamari Port is about 24 million MT where as the Fotco Jetty at Prot Qasim has a designed capacity of 9 Million MT. 

It is expected that efficiency and flexibility will increase manifold if these two ports were connected to each other through an integrated pipeline system. On successful completion of the study both organizations intend to develop a joint venture partnership for operation of the new proposed system.


----------



## Omar1984

*&#8216;Gomal Dam needs timely funding for completion&#8217; ​*
ISLAMABAD: Chairman Water and Power Development Authority (WAPDA), Shakeel Durrani said if Public Sector Development Programme (PSDP) would release the required amount of Rs 3 billion in the next three months then Gomal Zam Dam could be completed at the end of December 2010.

Replying to a question asked by former senator, Raza Muhammad Raza on 30th April 2008 he informed the Functional Committee on Government Assurance (FCGA) here on Monday that PC-1 cost of Gomal Zam Dam was Rs 12.829 billion, but due to inadequacy and delay in funding by the government, its revised cost stood at Rs 21 billion with the increase of 38.90 percent. He said due to security risk, more than 1100 security personnel including army personnel had deputed for the security of foreign contractors working on the site and major part of the fund was being spent on the security of foreign contractors. Shakeel clarified before the committee that another reason to increase in revised cost is continuous increase in petroleum and fuel prices.

&#8220;54 percent work on Gomal Zam Dam has completed, while after completion of this project more than 0.163 million acres land would be irrigated and this project has the capacity of generating 17.4 megawatt hydro power energy&#8221; he added.

Shakeel revealed that after releasing adequate fund by the government, WAPDA would likely release water in Karachi Canal at the end of December 2010, which would be helpful to irrigate 0.102 million acres in phase one for prosperity in agriculture sector.

&#8220;Similarly, due to inadequate and delay in funds by the government, PC-1 cost of Greater Thal Canal was Rs 6.482 billion and its revised cost stood at Rs 10.144 billion with the increase of 36.10 percent, whereas, after completion of the project, total 1.739 million acres land could be irrigated and 0.355 million acres land would be irrigated in phase-1 after completing this project he added&#8221;.

Chairman Wapda informed the committee that Wapda has completed the two projects successfully in Balochistan province namely Mirani Dam with cost of Rs 5.811 billion and Sabkzai Dam with revised cost of Rs 1.961 billion as compared to PC-1 cost of Rs 1.576 billion showing the loss of Rs 0.403 billion.

Committee member, senator Talha Mehmood expressed concerns over horrible revised increase in different hydropower projects under consideration of WAPDA, particularly Gomal Zam Dam project cost.

Talha regretted to Wapda Chairman that due to delay in completion of the ongoing Hydro Power projects and water reservoirs, the country is facing water shortage and load shedding, which is causing general public a great deal of trouble. &#8220;If Wapda wouldn&#8217;t take these issues as serious concern, particularly the increase in utility bills and load shedding, the public would be forced to come out on the streets that would further aggravate the situation and might put the concerned authorities in a tight spot.

He suggested the committee chairman, Senator Moula Buksh Chandio to write a letter to Planning Commission for releasing the amount of Rs 3 billion for completion of Gomal Zam Dam project in Dec 2010 as assured by Water and Power Development Authority (WAPDA). Moreover, Senator Safdar Ali Abbasi said due to the current financial crises in the country, it wouldn&#8217;t be possible for the government to make a substantial outlay of Rs 3 billion. However, the committee assured Wapda Chairman to fully support for the release of required amount of Rs 3 billion for completion of Gomal Zam Dam at the end of the year 2010.


----------



## Omar1984

*Foreign interest keeps Karachi stocks bullish, index up 114 pts ​*
KARACHI: Bullish sentiments dominated the trading activity at the Karachi stock market on the first trading day of the week Monday due to unabated foreign interest in banks, oil and gas and fertilizer sectors on strong valuations.

The Karachi Stock Exchange (KSE) 100-share index increased by 113.90 points or 1.18 percent to close at 9,740.19 points as compared to the previous session&#8217;s 9,626.29 points. The KSE 30-share index closed at 10,210.88 points with a gain of 109.40 points. The KMI 30 closed at 14,554.47 points with a rise of 143.05 points. 

Analysts said the market maintained a positive trend despite a suicide bomb attack in Lahore. The market opened in the green zone and this trend remained prevalent throughout the trading session making substantial gains in the process in the wake of boost in investor confidence spurred by higher oil prices in the international market.

The market turnover went down by 10.87 percent and traded 174.31 million shares as compared with the previous session&#8217;s 157.22 million shares. The overall market capitalisation was up by 1.12 percent and traded Rs 2.784 trillion as against Rs 2.753 trillion of the previous session. Out of 404 active companies, 223 closed in the positive zone, 170 in negative and 11 remained unchanged. 

&#8220;The market opened in the green zone as the last week&#8217;s foreign buying of $27 million reserved investor confidence despite bomb blast in Lahore,&#8221; said TopLine Sec analyst Farhan Seth. &#8220;Lotte Pakistan topped the volume list along with Fatima Fertilizer posting robust activity on its debut in ready counter.&#8221;

&#8220;Positive sentiment continued on higher international oil prices and rising global capital markets despite bomb blast in Lahore and renewed security concerns in the country,&#8221; said Shahzad Chamdia Sec senior analyst Ahsan Mehanti.

Expensive and high priced stocks continued to witness profit-taking mainly by those who have been accumulators in the recent adjustment restricting the market from unprecedented rise. 

The KSE 100-share index opened in the green zone with a gain of 10.94 points and at the end of the day closed at 9,740.19 points with a rise of 113.90 points. 

Lotte Pakistan was the volume leader with 27.21 million shares as it closed at Rs 11.11 after opening at Rs 10.11, gaining Re 1. staff report


----------



## Omar1984

*Iran-German consortium willing to build dam ​*
ISLAMABAD: An Iran-German consortium, Fraz Aab and Centy Company Tuesday expressed its interest investing in construction of dams in Balochistan, especially the Jhal Magsi Dam for which the company has visited the site and made necessary survey for its construction.

A seven-member investors&#8217; delegation from Iran&#8217;s Fraz Aab and Germany&#8217;s Centy Company headed by Dr Hossein Pouya consultant met here with Minister of State for Industries and Production, Dr Ayat Ullah Durrani and informed the minister that apart from Jhal Magsi Dam, they were ready for huge investment in other mega projects of power and energy generation as well as installation of other heavy industries in Balochistan and other parts of the country with public private partnership.

The Fraz Aab and Centy is an Iran-German joint venture company, which showed their willingness for investment in construction of Jhal Magsi Dam and also other proposed dams in Balochistan.

The delegation informed Dr Ayat Ullah Durrani that they also had a meeting with high officials of WAPDA prior to this meeting and they have also welcomed and appreciated the delegation&#8217;s plans for construction of dams. So their meeting with WAPDA proved very useful and productive.

The Minister of State Dr Ayatullah Durrani welcomed the investors&#8217; delegation and appreciated their plans for such a major investment of foreign exchange in the industrial sector of Pakistan particularly in Balochistan.

The Minister said that there are huge opportunities for foreign investors in Balochistan since Gwadar Port has become operational.


----------



## Omar1984

*Pakistani rice export to Malaysia may increase four times ​*
KARACHI, March 9 (APP): Malaysia is expected to increase its rice import from Pakistan four times this year.This was disclosed by the Commercial Counselor for Pakistan High Commission Wijiuallah Kundi in Kuala Lumpur.He said that Malaysian Padiberas National Berhad (BERNAS) and its group of companies which are involved in the procurement and processing of paddy, as well as import, warehousing, distribution and marketing of rice in Malaysia have been actively engaging Pakistan to bring about four fold increase in import of Pakistani rice with the objective to diversify its import base of rice and to minimize its dependence on rice import from Thailand and Vietnam. 

The Malaysian import of rice from Thailand and Vietnam make up 45.91&#37; and 34.5%, respectively. Currently Pakistan is the third biggest exporter of rice to Malaysia, but it makes up only 4.1% of the total rice import which now have been projected to increase four fold in the year 2010. 

The Commercial Counselor said that during the visit of the Minister of Agriculture and Agro-based Industry of Malaysia from 14th to 17th December, 2009 to Pakistan, the Malaysian importers secured many contracts for Pakistani companies for rice import, the trend will continue the year 2010 leading to substantial increase. 

The rice varieties of Pakistan which are priced world over and by Malaysia consumers due to their excellent taste, enchanting flavor and healthy nutritious value includes various varieties of Basmati rice including Super, Shaheen and Kernal, Basmati and other varieties includes NIAB, IRRI-9 and IRRI &#8211; 6, Broken rice, Rice in the husk, paddy Husked or brown rice both Semi-milled or wholly milled. 

In the year 2008, total rice export to Malaysia was valued at RM 110.97 million. However this sector did not perform well in the same year and registered a decline in its share of export to Malaysia of Pakistan goods from 32% to 14% whereas import of rice during first ten month of 2009 was recorded at RM. 57.523 registering a decline of 46.25% from import of 107% in first ten months of year 2008. This declining trend is being harnessed and in 2010 is expected to register substantial increase of four fold.

Reactions: Like Like:
1


----------



## Omar1984

*Freight train expected to be operational soon ​*
LAHORE: Federal Minister for Railways, Ghulam Ahmad Bilour said a Godown-to-Godown Freight Train is being worked out to facilitate the business community and it would be functional as soon as the modalities to this regard are finalised.

Speaking to representatives of the Lahore Chamber of Commerce and Industry on Tuesday he said that Godown-to-Godown Freight Train (from Railway godown to customer&#8217;s godown) was being worked out on the demand of the business community and to promote train culture in the country, and all the possible measures are being taken to give a timetable of freight trains to its customers and once the timetable is finalised, it would be implemented at all costs. &#8220;All the trains will reach their destination at the scheduled time and Railways would compensate the businessmen who suffer because of any delay of the freight train. 

He said Pakistan Railways would soon be starting 24-hour freight service as a lot of businesses were suffering only due to absence of this service.

The Minister gave a patient hearing to all the issues raised by LCCI members and told Pakistan Railways has purchased 75 new locomotives from China to overcome the shortage as Railways needs 410 locomotives daily, and as soon as the new locomotives arrive, the situation would improve considerably.

He maintained that, unfortunately the Ministry is facing different problems, particularly lack of funds to improve the railway system, as Pakistan Railways has been operating on aging engines that need repair or replacement, adding the existing outdated tracks also need to be doubled to make railway journey more safe. 

Whereas, LCCI President Zafar Iqbal Chaudhry said on the occasion that the Lahore Chamber of Commerce and Industry was working on three projects including Model Freight Train, Model Passenger Train and a new Dryport, and presentations to this regard have been prepared that would be presented to the concerned authorities very soon.

He added Pakistan Railways forms the lifeline of the country by catering to its needs for large-scale movement of freight as well as passenger traffic. It is a major source of transportation of wheat, coal, fertilizer, rock, phosphate, cement, container traffic and sugar. Being the most effective transport system, it plays a vital role in generating development opportunities. Railways has a definite and unmatchable edge over road for long and bulk haulage and mass scale traffic volume being safe, pollution free, environment friendly and most economical as compared to any other mode of transportation. staff report

Reactions: Like Like:
1


----------



## Hyde

@ Omar & to whom it may concern

you follow economic news almost every day, any updates on Karachi Circular Railway or Lahore Rapid Mass Transit?

Thanks


----------



## Omar1984

Zaki said:


> @ Omar & to whom it may concern
> 
> you follow economic news almost every day, any updates on Karachi Circular Railway or Lahore Rapid Mass Transit?
> 
> Thanks



Latest news on Karachi Circular Railway:

*Circular Railway project hits a snag ​*
GHULAM ABBAS Sunday, 24 Jan, 2010 4:01 am 


KARACHI : The long-awaited Karachi Circular Railway (KCR) project has hit a snag because of the issue of what sources said "re-lending" of around $1.58 billion by the Japanese government. The transfer of the amount to Karachi Urban Transport Corporation (KUTC) through the federal government would face a 17 percent cut, making the project unviable, sources said.

They said this procedure of releasing funds would face the drastic cut of 5 percent "risk rate" and almost 12 percent "interest rate", making total deduction of 17 percent. Interestingly, they said, the corporation had not addressed this issue since the project was going through different studies during the last few years.

"If the issue of deduction, under different heads, is not resolved timely, the project would face another delay which could ultimately increase its cost," sources said, adding that the government of Japan, which would invest $1.58 billion on revival of KCR to mitigate traffic problems in this metropolis, would issue the funds to government of Pakistan directly.

To address the re-lending issue, sources said, a meeting was held on December 18 in Economic Affairs Division (EAD), Islamabad, but it was yet to be resolved by the concerned authorities. However, they said, it was decided in the meeting that the foreign funds, to be received by the federal government, could be used through Pakistan Railways (PR).

The Ministry of Railway would later release the fund to KUTC, which is the vehicle for the implementation of the project having on its Board-Directors the senior officials of PR, Government of Sindh and City District Government Karachi (CDGK).

An urgent meeting in this regard was needed to solve the issue without any further delay, as the project's cost has already been increased from $872.316 million to $1.58 billion due to the persistent delay, they added. However, Ejaz Khilji, Managing Director, KUTC, said the corporation was seriously considering the re-lending issues and it would be resolved within the next few days.

As KUTC has already handled many issues regarding the important project, the transfer of funds was not a big problem, he added. It is to mention here that the KCR project was to be funded by government of Japan through the Japan Bank of International Co-operation (JBIC). Tokyo has commissioned 100 percent funding for the project under "STEP Loan" at 0.2 percent markup rate for a 40-year payback time, including a 10-year grace period.

The project, with the completion of different studies like Environmental Impact Assessment Study (EIAS) and resettlement action plan etc under the aegis of Japan External Trade Organisation), has already been approved by Executive Committee of National Economic Council (Ecnec).







However, there's a mention in a much recent article that this project will be revived with international help:

http://www.nation.com.pk/pakistan-n...2010/Malirbased-farmers-to-get-agri-land-Qaim

Reactions: Like Like:
1


----------



## Omar1984

Zaki said:


> @ Omar & to whom it may concern
> 
> you follow economic news almost every day, any updates on Karachi Circular Railway or Lahore Rapid Mass Transit?
> 
> Thanks



Latest news on the Lahore Rapid Mass Transit (sorry for the bad news).

*PML-N dumped mega projects, says Pervaiz ​*
*PML-Q leader Chaudhry Pervaiz Elahi has alleged the incumbent provincial government had abandoned multi-billion dollar foreign-funded projects such as Lahore Rapid Mass Transit System and Abu Dahbi Centre at Ferozepur Road due to their inefficiency and lack of vision.* 

Addressing a press conference, Pervaiz claimed that the execution of LRMTS project would have helped the provincial government address traffic problems, environment pollution and oil consumption. He claimed that the city traffic could have a different look altogether had this project been implemented. The Asian Development Bank and private sector had agreed to put $1 billion each in the project, and the Punjab government $400 million, he added.

He regretted that the current PML-N government has abandoned the project only because it was started by the PML-Q government. He urged media to inform the people about injustices being done to them by the PML-N government. He claimed that he would raise this issue in Punjab Assembly through Opposition Leader Chaudhry Zaheer and Deputy Opposition Leader Ahmed Yar Hiraj.

About the LRMTS project, Pervaiz said it included 97 kilometres of underground and elevated passages. In the first phase, it had linked Hamza Town on the Ferozepur Road to Shahdara. He said his government had planned to complete it before 2011 prior to the schedule of Cricket World Cup in 2012. He deplored that the current PML-N government simply lost interest and let the ADB loan expire in June 2009. The project had the capacity to cater to 35,000 passengers every hour, making it 350,000 commuters in ten hours.

It is criminal negligence and we are taking our case to the people of Punjab to assess for themselves who was, or is, serving them better, he said.

Flanked by Ch Zaheeruddin, he said that the party would raise the matter on the floor of the Punjab Assembly.

The project was well studied and thought out. Urban reliance on public transport system in Lahore is almost 60 per cent. In Vietnam, where such reliance was only 20 per cent, it rose rapidly with the introduction of rapid mass transit system, he said.

In India, the rapid mass transit system started in Kolkatta and in Delhi. The Delhi Metro is now the second largest underground rapid transit system in India, he said. Due to the introduction of rapid mass transit system, the Indian society has witnessed a rapid economic, social and cultural transformation. For the financial year ending March 2008, it reported operating revenues of Rs3 billion ($62.89 million), with a profit of $4.12 million.

Lahore, with a population of over 9 million, is the countrys 2nd largest city with a growth rate of four per cent. Its transport system, which has horizontal not vertical growth, is poorly developed and under-maintained. Due to high economic growth during 2002-07, vehicle ownership growth also accelerated leading to increased congestion, poor environment and degradation in quality of life, further exacerbating by diverse traffic mix and lack of traffic and pedestrian discipline. According to an international survey more than 1.35 million passenger trip take place in Lahore daily, he said.

The city is suffering annual loss of $100 million due to the absence of rapid, efficient, convenient, time and fuel saving mode of transportation. It has been a huge set back to real estate development, environmental pollution control and contributed to the flight of foreign capital and international investments, he claimed.

Every concerned citizen of Lahore must ask the current provincial government what made it dump the project of public welfare on political and personal grounds, he said.

Reactions: Like Like:
1


----------



## Omar1984

*Rupee up ​*
KARACHI (Reuters) - In the currency market, the rupee ended firmer at 84.51/57 to the dollar, compared with Monday&#8217;s close of 84.68/78.

Dealers said there were few import payments in the market, and portfolio inflows had provided some support over recent days. According to official data, foreigners have bought shares worth a net $31.86 million this month. The rupee ended at an all-time closing low last week and hit an all-time low of 85.15 last month.

Dealers said the rupee may firm in the event of more selling by exporters and if external flows started to come in. But the medium-term outlook remained weak. The rupee has lost 0.25pc against the dollar this year after losing 6.17pc last year and a 22.12pc slide in 2008.


----------



## NWO

Omar1984 said:


> *Rupee up ​*Dealers said the rupee may firm in the event of more selling by exporters and if external flows started to come in. But the medium-term outlook remained weak. *The rupee has lost 0.25pc against the dollar this year after losing 6.17pc last year and a 22.12pc slide in 2008.*


That is probably due to the insurgency and military operation. Once the fighting slows down, foreign investments will trickle back into the country.


----------



## Hyde

*Pakistan-Iran gas pact likely to be inked on Mar 16​*

Updated at: 1956 PST, Wednesday, March 10, 2010
ISLAMABAD: Heads of Agreement about Iran-Pakistan gas pipeline project is likely to be signed on March 16, Inter-State Gas Company Managing Director Naeed Sharafat told the National Assembly Standing Committee on Petroleum Wednesday.

Sheikh Waqas Akram chaired the meeting.

The committee was told that there was complete agreement on four of the five-point agreement about the Iran-Pakistan gas pipeline pact.

On this occasion, committee member Hanif Abbasi said that he would himself get a case registered against the Sui Gas officials if people grievances about gas bills were not addressed.

*He said that people were paying Rs19.73 per litre oil as tax but nothing was being charged from the Nato for delivery of oil.*

Reactions: Like Like:
1


----------



## Omar1984

*&#8216;Made in Pakistan Products&#8217; exhibition launched 
​*
ISLAMABAD, Mar 10 (APP): The launching ceremony of the forthcoming &#8216;Made in Pakistan Products Exhibition 2010&#8217; was held on Wednesday in Rawalpindi. &#8216;Made in Pakistan, Products Exhibition 2010&#8217; will be held in Kathmandu (Nepal) from May 12 to 16 to promote bilateral trade between the two countries besides promoting Pakistan branded products in that market.The exhibition has been organized by Pak World Trade and Expo Centre with an aim to lead the industrialists, manufacturers, organizations, individuals and the country to export-oriented trade.

Announcing the launching of the exhibition at a function here, CO, Pak World Trade and Expo Centre, Khurshid Barlas said that the centre has recently organized similar exhibition at Chindigarh, India and at Pakistan Pavilion at Dhaka international Trade Fair, which he said had received tremendous response.

He said that more than 65 companies and 125 members of delegation from different chambers of commerce are scheduled to participate in the event.
Speaking on the occasion, Ambassador of Nepal Embassy, Bala B. Kunwar, said that although Pakistan and Nepal were enjoying cordial relations, however the trade relations between the two countries were very nominal.

He urged upon the private sector to explore the trade potential and exploit it for the benefit of both the countries. 

He said that Pakistan was producing quality products, however it needed to market these with its own brand. He also lauded Pakistan for helping Nepal in manpower development.

He expressed the hope that the exhibition would help promote trade relations between the two countries and enhance trade volume.

Speaking on the occasion, Acting High Commissioner, Bangladesh, M. Mahfuz ur Rehman stressed the need for enhancing trade relations among the SAARC countries. He urged upon the member countries to rectify the SAARC Free Trade Agreement for the promotion of trade in the region.

He said that the exhibition would not only help promote business to business relations but also people to people contacts.

President Rawalpindi Chamber of Commerce and Industry, Kashif Shabbir while speaking on the occasion stressed the need for promoting Pakistani brand in the international market.

He said that the country was producing quality products however due to lack of brands it had to suffer great losses in terms of currency.

Chancellor, National Institute of Cultural Studies (Lok Virsa) Rauf Khalid, also spoke on the occasion and highlighted the importance of the exhibition.


----------



## Omar1984

*FFC finalizes contract for wind power project with Germany company ​*
ISLAMABAD, Mar 10 (APP): FFC Energy Limited (FFCEL), a subsidiary of Fauji Fertilizer Company Limited (FFC) here on Wednesday finalized contract with Nordex of Germany for the development of 50 mega watt wind power project. According to the contact, Nordex, a leading manufacturer of Wind Turbines, would be responsible for Engineering, procurement, construction and operation as well as maintenance of the project, said a press release.

The contract documents were exchanged between Carsten Pedersen, Founder and Chief Sales Officer, Nordex and Gen.(rtd) Malik Arif Hayat CE, FFC and MD, FFCEL here.

Arif Alauddin, CEO Alternative Energy Development Board (AEDB) Pakistan was also preset on the occasion.

According to press release, FFCEL would soon file tariff petition with NEPRA for the project and the construction of the project would begin after its approval and signing of Energy Purchase Agreement between FFCEL and Central Power Purchase Agency.

The project, once operational, would help reduce energy shortage by providing cleaner, sustainable and economical electricity.

The FFC further plans to develop and establish more renewable energy projects in the country to contribute towards fulfilling Pakistan&#8217;s electricity needs through captive renewable resource.

FFC has already obtained Letter of Intent (LOI) of additional 100 MW Wind Power Projects from AEDB, the press release added.

Reactions: Like Like:
1


----------



## Omar1984

*German, Italian Investors want investment in Balochistan ​*
QUETTA, March 10 (APP): Chief Minister Balochistan Nawab Muhammad Aslam Raisani Wednesday told that German and Italian investors had expressed their interest to invest in Balochistan regarding solar energy and seafood sectors. He expressed these views in a meeting with Minster for State Salim H Mandviwala. Chief Minister Balochistan Nawab Muhammad Aslam Raisani Wednesday said that various sectors in Balochistan including fisheries, seafood, chromite, marble, coals and others had a great charm for investors, adding the provincial government would extend its all out collaboration in this regard.

Talking to the Minister for State for Investment Board Salim H Mandviwala, Nawab Raisani said the Balochistan government wanted local and foreign investment in various sectors including mines and minerals, cotton, fruits particularly olive cultivation. Installation of solar and coal power plants and others.

He regretted that investors would have to face some difficulties when they express their interest of investment, adding the provincial government had pledged to remove all such obstacles.

Senior Minister Maulana Abdul Wasey, Provincial Information Muhammad Younis Mullazai, Secretary Investment Board M Salim Khan, Chief Secretary Balochistan Mir Ahmed Bukhsh Lehri, Additional Chief Secretary Development Qayyum Nazar Changezi and other high officials were present on this occasion.

The CM Balochistan viewed the provincial government had decided to establish shipping yard in order to promote sea food industry in coastal areas of the province. He maintained that the government would welcome investment in solar and coal power production projects.

He lamented that no adequate investment could be attracted in marble cutting industries, adding investment in this sector would boost local economy. He offered the provincial government would provide all possible facilities to investors desirous to invest in Balochistan.

Earlier, Minister for State Salim H Mandviwala said that President Asif Ali Zardari and Prime Minister Syed Yousuf Raza Gilan were keen on investment in Balochistan.

He highlighted that a German investor Group had expressed his interest to install a 50MW solar energy plant in Pakistan and the federal government would provide the site for the purpose in Balochistan.

He mentioned that Italian investors had also expressed their interest to invest in seafood industry in Balochistan.

He added the federal government would provide facilities to foreign investors wanted to invest in Balochistan.


----------



## Omar1984

*Turkey show great interest in investing in Pakistan ​*
RAWALPINDI, March 10 (APP): Turkey has shown interest to invest in energy sector, sewerage and mega project like metro train in Rawalpindi, President Rawalpindi Chamber of Commerce and Industries Kashif Shabbir said on Wednesday. He was talking to Babur Hizlan ambassador of Turkey in Pakistan here. He thanked the honorable guests for visiting RCCI premises.

Kashif said that Free Trade Agreement (FTA) should be signed between the two countries to foster the bilateral trade activities adding that all the Muslim States should enhance trade relations with each other to curb the prevailing global economic crunch. 

The Ambassador said that it is need of the hour to enhance the bilateral trade between the two brother Islamic countries. 

He stressed that only true cooperation between the two business communities would play a proactive role in this regard.

Senior vice President Syed Ali Raza Saeed Shah, Vice President Kh. Rashid Waien, former Presidents, Executive committee member and renowned businessmen were also present on the occasion.


----------



## Omar1984

*Economy may improve by year-end, says Gilani ​*
ISLAMABAD: A meeting of federal ministers and senior finance ministry officials chaired by Prime Minister Yousuf Raza Gilani on Tuesday was informed that the country&#8217;s financial position might improve by the end of the year because some friendly countries had indicated that they would provide funds for development projects. 

The government had to cut its Public Sector Development Programme by 44 per cent to Rs250 billion from Rs446 billion&#8212;because of additional expenditures on security. 

The meeting which reviewed the progress on development projects, expressed the hope that partial fulfilment of pledges made by the Friends of Democratic Pakistan might help in carrying out some major projects. 

An official told Dawn that a final report on FoDP commitments would soon be submitted by the ministry of finance to the prime minister. 

The meeting, attended by ministers for industries and production, ports and shipping and science and technology, minister of state for finance and economic affairs, State Bank Governor, chairman of the Board of Investment, Secretary Finance and chairman of the Board of Revenue, stressed the need for enhancing the capacity of provincial governments for timely utilisation of allocated funds. 

It agreed that projects in underdeveloped areas needed to be given priority to bring them at par with other areas of the country. 

According to an official handout, the meeting called for speeding up work on mega projects and early completion of the Gawadar-Ratodero road and Gawadar airport.


----------



## Omar1984

*Operator hopeful of salvaging $3bn copper venture ​*

Tethyan Copper Co. said the authorities were worried about getting a fair deal and also wanted to undertake smelting and refining to ensure the maximisation of benefits. - File photo


ISLAMABAD: The operator of a $3 billion joint venture copper and gold project in Pakistan is hopeful the project will go ahead despite a government threat to scrap it because of misgivings about the share of benefits. 

The project is owned by Canada&#8217;s Barrick Gold and Chilean copper miner Antofagasta. 

The two firms are partners in the Tethyan Copper Co. (TCC) which has a 75 per cent interest in the Reko Diq project in Balochistan and hold the exploration licence for the site. 

The provincial government holds the remaining 25 per cent. 

Tethyan is finishing up a feasibility study into the site, which could yield 22 billion lb (10 billion kg) of copper and 13 million oz (368 million grams) of gold over the 50-60 year project, and aims to apply for a mining licence within weeks. 

But late last year, the provincial government said it wanted to cancel the project, ostensibly to get control of resources in Pakistan&#8217;s poorest province where anger over exploitation of gas and minerals is fuelling insurgency. 

Peter Jezek, chief executive officer of Tethyan Copper Co., said the authorities were worried about getting a fair deal and also wanted to undertake smelting and refining to ensure the maximisation of benefits. 

But Jezek said anxiety about Pakistan&#8217;s first world-class mining operation was largely the result of misunderstandings. 

&#8220;There is a combination of a lack of information and fear of the unknown,&#8221; Jezek told Reuters in an interview in his Islamabad office. &#8220;The problem to a very large extent is not having the basics of understanding in place.&#8221; 

&#8220;The fear on their side, obviously, is &#8216;are we getting a fair deal?&#8217;&#8221;, he said. 

The authorities&#8217; proposal to set up a smelting and refining operation was based on a doubtful perception of benefits. &#8220;Mining and concentrating actually captures over 90 per cent of the copper chain value, smelting less than 10 per cent ... We have pointed out that the economics of smelting and refining are very poor,&#8221; Jezek said.&#8212;Reuters

Reactions: Like Like:
1


----------



## Omar1984

*KSE sees increase in foreign portfolio investment ​*
KARACHI: Foreign portfolio investment flooded the capital market in the first ten days of current month when it received $44 million worth of investment. The flurry of the buying activity by the foreigners has been going on for the last few days and signals the return of foreign buying in the local stock market bodes well for the local bourse, which has been feeling a bit of pressure due to implementation of capital gains tax from July 01, 2010. According to local market players, the attractive buying levels have received the attention of foreign funds because their local ones have got panic to some extent due to commencement of the capital gains tax from next financial year. The buying spree by the foreign funds is getting stronger with the each passing days and even on Wednesday foreigners were the net buyer with almost eight million dollars in the market. Market gurus pointed out that discounted prices of the local scripts are cheaper compared to their regional peers as well as the steady progress being made against the militancy have been received well by the foreign investors and are putting their money on the local scripts. Equity analysts said that after month of August and September last year, it is the best selling on the part of foreign investors after having a cautious stance in the latter part of last year and month of January. However, the beginning of month of February brought bonanza for the local market in the form of herds of foreign investors flocking the local market by raising their holdings in the local equity scripts. The share of foreign funds in average daily volumes have also increased to about 12 percent presently against just 3.5 percent few years back, analysts pointed out. According to stock market analyst, if the much-awaited leverage product has been introduced, more brisk buying by the foreign funds has been witnessed. tanveer ahmed


----------



## Omar1984

*Govt likely to allocate Rs 560bn for PSDP 2010-11 ​*
ISLAMABAD: The government is likely to allocate Rs 560 billion for the Public Sector Development Programme for the year 2010-11, while last year it was Rs 621 billion, showing a decrease of around 10 percent, sources told Daily Times on Wednesday.

Among the total PSDP (Rs 560 billion) for the coming fiscal year, an amount of Rs 300 billion is likely to be allocated for the projects of federal government funded, whereas, an amount of Rs 260 billion is to be earmarked for provinces to be spent through their Annual Development Programs (ADPs). Last year, the government allocated Rs 421 billion for federal funded development projects and Rs 200 billion for provinces.

Keeping in view the emergent financial position of the country, the sources said the government is trying to reduce funds for PSDP sponsored projects. Majority of the development projects coming under provinces will be transferred to them. Secondly, under 7th NFC award, more funds will be provided to provinces, therefore, more projects will be transferred to the provinces.

The sources claimed that the main objective of the development budget 2010-11 was to meet infrastructure requirement of the country. During the year, the government would provide more funds for important infrastructure projects like Diamer Basha Dam and others. 

Due to ongoing war on terrorism and financial constraints, the government has to cut the PSDP 2009-10 by Rs 150 billion or more. Sources said the budget deficit was moving towards 5.3 percent against the estimated deficit 4.3 percent during the year 2009-10, political uncertainty, security problems, higher prices of global prices. Fiscal position of the country was under severe stress and strain, which compelled the government rationalize development budget (PSDP).

The government announced Rs 621 billion PSDP 2009-10, which consists of Rs 421 billion as federal component, Rs 200 billion for provinces. The federal component of Rs 421 billion consists of Rs 21 billion as operational shortfalls and the net federal component of PSDP was Rs 400 billion. With the rationalization process the government would reduce the PSDP by up to Rs 150 billion and the net amount would be Rs 250 billion, showing a cut of Rs 37.5 percent.

However, sources in the ministry of finance told Daily Times that total releases during the current fiscal year would be not more than Rs 200 billion instead of budgetary allocated amount of Rs 421 billion. The sources suggested that the government should approve the realistic size of the PSDP, which could be released by the Finance Division and utilized by the implementing agencies. The strategy of the government to give over-estimated size of the PSDP was tantamount befooling the general public that the government was sincere in public development.

Officials in the Planning Commission claimed that the government could not announce any cut in the PSDP in the current year, but actual realisation would be around Rs 200 billion. Increase in government taxes and unofficial cut in PSDP would help the government to bring down the fiscal deficit to the level already negotiated with the IMF.

The inadequate releases from PSDP 2009-10 funded major four water and power related schemes would further delay in getting 118.16 MW and 644 GW in the national system, sources told Daily Times here on Wednesday. ijaz kakakhel


----------



## Omar1984

*50MW wind power project in Thatta soon ​*
KARACHI - Chief Executive of Iran- Pak Wind Power (Pvt) Ltd Khurram Sayeed on Wednesday called on Chief Minister Sindh Syed Qaim Ali Shah at Chief Minister House. 

He apprised the Chief Minister Sindh about his project which will be undertaken by joint venture with complete loan from his firm. 

He further said that they had made survey of Thatta and Jamshoro districts, where these projects are feasible and as a first step, the Wind Power Project will be initiated in Thatta district, for which an area of 600 to 100 acres will be required. He added that 50 MW power will be generated by this project. 

He informed that there firm is already running these projects in Iran and their firm is fully equipped with latest technology in wind power concept. 

He further said that an amount of $ 200 million will be provided as loan for the project. Chief Minister Sindh Syed Qaim Ali Shah appreciated the proposed Project and said that the Government of Sindh will encourage projects aimed at for power generation so as to meet the shortage of electricity. He added that incentives will be provided to intending investors.

Chief Minister Sindh assured the officials of Iran - Pak Wind Power (Pvt) Ltd that the project will be examined and land required will be provided. He further advised them to process matter through Board of Revenue Sindh & Board of Investment, Sindh for allotment of land.


----------



## Omar1984

*CM for promoting investment to eliminate poverty ​*
LAHORE - Punjab Chief Minister Muhammad Shahbaz Sharif Wednesday said that promotion of investment was the need of the hour for rapid development of the country and elimination of poverty and unemployment.

A comprehensive programme is being implemented for this purpose, he said while addressing a meeting of Board of Directors of Punjab Board of Investment and Trade presided over by him as its chairman at Chief Minister&#8217;s Secretariat here.

Members Board of Directors, Chairman Planning and Development, Additional Chief Secretary and Secretaries of Agriculture, Livestock and Finance departments were also present.

He said that a vibrant and active Board of Investment and Trade comprising government representatives and experts in various sectors has been set up which is not only encouraging foreign investment but is also ensuring provision of necessary facilities under one roof.

He said that Punjab is rich in natural resources which could be exploited for attaining self-reliance as well as development and prosperity of the province.
He said that huge foreign exchange can be earned through export of livestock and agri products to Middle East and other countries. 

He said that negotiations are being held with foreign investors for the development of these sectors as well as setting up of a Halal Meat Processing Plant by using modern technology in dairy sector.

Appreciating performance of the Board of Investment and Trade, the Chief Minister stressed the need for promoting public-private partnership.

He said that transparency is the most important element of all projects of investment and this culture is being promoted throughout the province to ensure utilization of every penny of public money for the welfare of the masses.
He directed that a roadmap should be evolved for achieving the objective of investment of one billion US dollars in Greenfield project.

Earlier, Vice Chairman Punjab Board of Investment and Trade, Pir Saad Ahsanuddin gave a detailed briefing regarding investment and promotion of public-private partnership in the province. 

He said that special attention is being paid to food processing, corporate farming, dairy development, solid waste management and energy sectors.
Members of the Board also gave their proposals for the promotion of investment in the province.


----------



## Omar1984

*Foreign interest in blue chips pushes Karachi stocks 95 pts up ​*
KARACHI: The Karachi stock market observed a bullish trading session on Thursday on account of continued foreign investment in telecom, banks and power sectors.

Rise in international oil prices to $83 per barrel also boosted investors&#8217; confidence. The Karachi Stock Exchange (KSE) 100-share index increased by 94.72 points or 0.97 percent to close at 9,879.70 points as compared to the previous session&#8217;s 9,784.98 points. The KSE 30-share index closed at 10,361.72 points with a gain of 100.11 points. The KMI 30 closed at 14,897.13 points with a rise of 165.09 points. 

Analysts said the market opened in the green zone and this trend remained prevalent throughout the trading session.

The market turnover went up down by 59.96 percent and traded 204.48 million shares as compared with the previous session&#8217;s 127.83 million shares. The overall market capitalisation was down by 0.88 percent and traded Rs 2.842 trillion as against Rs 2.817 trillion of the previous session. Out of a total of 410 active companies, 215 closed in the positive zone, 173 in negative and 22 remained unchanged. 

&#8220;Huge foreign inflows of $44 million in the last 10 days has boosted investors&#8217; confidence,&#8221; said TopLine Sec analyst Farhan Seth. &#8220;However, some selling by local institutions was witnessed on upper levels but due to higher volumes and expectations of further foreign inflows, selling pressure was restricted.&#8221; PTC dominated the volumes on the back of foreign interest in the scrip. 

&#8220;Strong valuations in blue chips played a catalyst role in the positive activity in the post results announcement session despite renewed concerns over rising circular debt in oil and gas sector and investor concern over rising CPI inflation in the country,&#8221; said Shahzad Chamdia Sec senior analyst Ahsan Mehanti. 

&#8220;High interest shown by the offshore participants in the blue chips infused energy in the local participants,&#8221; said Aziz Fida Husein and Co analyst Husnein Asghar Ali. The KSE 100-share index opened in the green zone with a gain of 32.38 points and at the end of the day closed at 9,879.70 points with a rise of 94.72 points. 

PTCL was the volume leader with 30.82 million shares as it closed at Rs 20.80 after opening at Rs 20, gaining 80 paisas. Lotte Pakistan traded 30.00 million shares as it closed at Rs 11.48 from its opening at Rs 10.93, rising 55 paisas. staff report


----------



## Omar1984

*BOC to invest Rs 2bn to install new plant ​*
KARACHI: BOC Pakistan has approved Rs 2 billion investment plan for the largest air separation plant in Pakistan. &#8220;Board of Directors of BOC Pakistan Limited accorded approval to the investment plan at an urgent meeting&#8221;, company announced at Karachi Stock Exchange (KSE) on Thursday. It announced that new state of the art plant would be located in Lahore and would be capable of producing up to 150 tonnes per day of merchant and gaseous products. The investment will also include distribution equipment required to support the volume growth with existing and new customers. staff report


----------



## Omar1984

*Pakistan, Afghanistan to develop communications network, boost trade to US 15 billion ​*
ISLAMABAD, Mar 11 (APP): Reiterating that Pakistan-Afghanistan ties were important for regional peace, security and development, the two countries agreed to develop communications network, boost trade to 15 billion by 2015 and enhance cooperation in education, agriculture and energy sector. A Joint Declaration issued at the end of two-day visit of President Hamid Karzai on &#8220;Next Steps in Afghanistan-Pakistan Comprehensive Cooperation&#8221; expressed determination by the two sides to realize the full potential of their vast human and natural resources for the progress and prosperity of their peoples. 

Pakistan and Afghanistan agreed to evolve joint strategies for early implementation of trans-Afghan energy projects, with particular focus on CASA-1000 and Turkmenistan-Afghanistan-Pakistan Gas Pipeline. 

The Joint Declaration signed by the two foreign Ministers Makhdoom Shah Mahmood Qureshi and Dr. Zalmai Rassoul agreed on developing a roadmap for strengthening road, rail and air connectivity and upgrade existing facilities. 

The two countries agreed to attach priority to undertaking completion of Peshawar-Jalalabad Expressway and completing feasibility study of Peshawar-Jalalabad rail link. 

Pakistan and Afghanistan also agreed to undertake joint studies on promotion and facilitation of multi-modal transport to operationalize transport corridors on mutually agreed routes and to expand aviation links and extend bus services to additional destinations. 

They also agreed to develop plans of action for customs harmonization and trade facilitation to facilitate bilateral trade between Afghanistan and Pakistan and to optimally utilize the natural comparative economic advantage of the two countries so as to enhance bilateral trade to $ 5 billion by the Year 2015. 

The two sides also agreed to establish a Silk Route CEOs Forum, and establish Pakistan-Afghanistan Reconstruction Consortium, pool public and private corporate resources for reconstruction and development. 

It was also decided to explore establishment of a Joint Investment Company to undertake joint development projects, including initiatives to develop region&#8217;s vast mineral and hydel wealth and also to consider setting up Economic and Industrial Zones. 

The two countries decided to enhance the number of scholarships for Afghan students in Pakistani educational institutions from the current 1000 to 2000 and to make special arrangements for female Afghan students. 

It was also decided to set up an Institute on Management, Business Administration and Faculty Training in Afghanistan. 

Pakistan and Afghanistan agreed to cooperate closely in capacity building of institutions. In this context, Pakistan offered extending assistance to Afghanistan, in setting up new capacity building institutions and upgrading the existing ones, in Afghanistan. 

On agricultural sector the two agreed to focus on food processing, consider creation of a Pakistan-Afghanistan Food Bank to strengthen food security, initiate joint research in agriculture and crops substitution programmes. 

They also decided to initiate comprehensive dialogue on environmental protection and mitigating impact of climate change. 

Pakistan and Afghanistan also agreed to further strengthen people to people contacts, and promote exchanges among intellectuals, parliamentarians, journalists, academia and students. 

It was agreed to establish close links among the media including print, radio and television of the two countries and to promote cultural exchanges. 

The joint declaration acknowledged the special bond &#8220;grounded in history and geography and spiritual, cultural, and civilizational affinities that impart a compelling sense of shared destiny.&#8221; 

The two countries also reaffirmed their mutual commitment to respect each other&#8217;s sovereignty, independence and territorial integrity, consolidate good neighbourly relations, and uphold the principles of the United Nations Charter. 

The statement also recalled the Kabul Declaration on Good Neighbourly Relations of 22 December 2002 and the Joint Declaration on Directions of Bilateral Cooperation signed between Pakistan and Afghanistan on 6 January 2009 in Kabul.

Reactions: Like Like:
1


----------



## Omar1984

*Rupee gains strength vs dollar ​*
KARACHI: The dollar lost strength versus the rupee in the interbank market, dealers said on Saturday. The dollar started the week&#8217;s trading at Rs 84.64 for buying and after losing strength closed at Rs 84.02 for buying and Rs 84.07 for selling. The rupee incurred a gain of 62 paisas. The euro witnessed mix trend versus the rupee as it started the week&#8217;s trading at Rs 115.07 for buying, gained strength and closed at Rs 115.29 for buying and Rs 115.49 for selling. The rupee incurred a loss of 22 paisas. The British currency recorded losses versus the rupee as it started the week&#8217;s trading at Rs 127.30 for buying, witnessed losses and closed at Rs 126.96 for buying and Rs 127.16 for selling. The rupee incurred a gain of 34 paisas. 

Open Market: The dollar remained low versus the rupee, dealers said. The dollar commenced the week&#8217;s trading at Rs 84.70 for buying and after recording losses closed at Rs 84.20 for buying and Rs 84.40 for selling. The rupee incurred a gain of 50 paisas. The European single common currency incurred gains against the rupee, as it started the week&#8217;s trading at Rs 114.40 for buying, continued its upward march and closed at Rs 114.70 for buying and Rs 114.90 for selling. The rupee incurred a loss of 30 paisas. The pound sterling lost grounds against the rupee, as it started the week&#8217;s trading at Rs 126.60 for buying and after losing strength closed at Rs 125.45 for buying and Rs 125.95 for selling. The rupee incurred a gain of Rs 1.15. staff report

Reactions: Like Like:
1


----------



## Omar1984

*Karachi stocks upbeat on continuous foreign buying ​*
KARACHI: Across-the-board foreign buying at the Karachi stock market during the week boosted the 100-share index above the psychological level of 10,000 points.

The Karachi Stock Exchange (KSE) 100-share index gained 399.70 points or 4.2 percent to close at 10,025.99 points as compared with 9,626.29 points of the previous week.

Analysts said that other major factors that helped the market regain its lost composure and cross the psychological level of 10,000 points were higher international oil prices and rising global capital markets.

The turnover was recorded at 191.59 million shares as compared to 157.22 shares of the previous week, reflecting an increase of 21.86 percent. 

&#8220;Incessant foreign buying for the sixth consecutive week boosted market sentiments with LPCL, SNGP and SSGC being the star performers,&#8221; said JS Sec analyst Rabia Tariq. &#8220;Macro data for the month of February was also unveiled during the week with the CPI down at 13 percent, trade deficit at $9.4 billion and remittances at $5.8 billion for the eight months of the fiscal year 2010.&#8221; 

The latest CPI number for the month of February came in at 13.02 percent, down from 13.68 percent in January primarily due to a decline in oil and sugar prices, shae said and added that moreover, trade deficit for eight months of the fiscal year 2010 narrowed by 19.5 percent to $9.4 billion, while home remittances depicted a declining trend from $668 million in January 2010 to $641 million in February 2010. The improved macro economic outlook led the rupee to appreciate 1 percent to Rs 84.1 in the outgoing week.

LPCL, SNGP and SSGC emerged as the top gainers during the week as they outperformed the market by 18 percent, 13 percent and 11 percent, respectively. The uplift was predominantly driven by a stable political situation in the country, which led to increased foreign interest in the market via hefty buying.

Foreigners remained the net buyers of $29 million for the sixth consecutive week. Since July 2009, net foreign buying stood at $380 million. Banks and individuals on the other hand emerged as net sellers of $14 million and $11 million during the week.

&#8220;Intense buying was witnessed during the week on back of intense foreign interest in oil and gas sector and banking scrips,&#8221; said Shahzad Chamdia Sec analyst Ahsan Mehanti. &#8220;Stronger valuations in oil and gas and banking sector played a catalyst role in the positive activity despite growing concerns over delay in appointment of the finance minister and release of the 4th International Monetary Fund tranche for Pakistan&#8217;s economic stability.&#8221;


----------



## Omar1984

*CDWP to take up 54 projects worth Rs 321.518 billion ​*
ISLAMABAD: The Central Development Working Party (CDWP) of the Planning Commission (PC) is likely to take up/recommend 54 projects costing Rs 321.518 billion with Rs 87.296 billion as foreign exchange component (FEC) in its next meeting scheduled for March 18.

PC Deputy Chairman Dr Ashfaq Ahmad will chair it. The meeting will take up national importance projects in different fields including agriculture and food, forestry and wildlife, cultural sports and tourism, environment, education, industry and commerce, science & technology, Higher Education Commission (HEC), water resources, devolution and area development (D&AD), physical planning and housing (PP&H), transport and communication, governance, health, and energy. 

The CDWP will consider five projects about agriculture and food worth Rs 12.036 billion with Rs 6.442 billion as FEC, one about forestry and wildlife worth Rs 87.707 million, one about culture, sports and tourism worth Rs 483.298 million, one about environment worth Rs 348 million with Rs 332.50 million as FEC.

The meeting will also consider a single project about industries and commerce worth Rs 8.698 billion with Rs 3.489 billion as FEC, four developmental schemes for science and technology worth Rs 34.685 billion with Rs 2.376 billion as FEC, four projects for HEC worth Rs 16.138 billion with Rs 10.649 billion as FEC and one project for water resources worth Rs 3.789 billion.

The CDWP will take up three projects for D&AD worth Rs 21.898 billion with Rs 14.923 billion as FEC, five projects for PP&H worth Rs 3.048 billion with Rs 161 million as FEC, 10 developmental schemes for transport and communication sector worth Rs 24.162 billion with Rs 13.685 million as FEC, six schemes for governance sector worth Rs 2.105 billion with Rs 608 million as FEC, six projects for health sector worth Rs 102.081 billion, four developmental schemes for energy sector worth Rs 86.821 billion with Rs 34.549 billion as FEC. 

The sum-total of all these 54 projects is Rs 321.518 billion with Rs 87.296 billion as FEC. 

According to the rules, the CDWP can approve a project valuing up to Rs 1 billion and the projects costlier than it will be sent to Executive Committee of the National Economic Council (ECNEC) for recommendations. 

Some of major important projects to be discussed in the meeting are: third 500 KV AES-Jamshoro-Moro-R.Y.Khan and 500 KV Moro-Dadu T/Lines Along with 500 KV New Switching Stations at Moro and Matiari and Extension at 500 KV etc.


----------



## Omar1984

*Govt will pay Rs45bn to ease energy crisis ​*
ISLAMABAD: The government decided on Friday to immediately release Rs45 billion to Pakistan State Oil, power companies and refineries to scale down rising circular debt which was causing an oil, gas and electricity crisis in the country. 

The decision was taken at a special meeting called by Prime Minister Yousuf Raza Gilani to ward off an imminent default in foreign payments against oil supplies. 

The prime minister asked the ministry of petroleum and natural resources to present the Pakistan-Iran gas pipeline project to the cabinet on Wednesday. 

An official said the finance ministry had been ordered to release Rs2 billion to PSO on Saturday, followed by Rs9 billion on April 2 and another Rs34 billion before April 30 through different sources, including issuance of Rs15 billion term finance certificates (TFCs) to the banking sector. 

He said Minister for Petroleum and Natural Resources Syed Naveed Qamar sought permission to allow PSO to discontinue fuel supplies to Hub Power Company, Kot Addu Power Company, other independent power producers and power companies of the Pakistan Electric Power Company for non-payment of dues. 

The prime minister did not agree to the suggestion and expressed the hope that the payment of Rs45 billion would greatly improve PSO&#8217;s cash-flow position in the short term. 

The prime minister ordered that an inter-ministerial committee should meet every week and secretaries of the ministries concerned every alternate week to permanently solve the problem of inter-corporate circular debt. 

According to sources, Minister for Water and Power Raja Pervaiz Ashraf said the power companies were facing difficulties because of over-dependence on furnace oil and diesel for electricity generation and non-availability of natural gas. 

The prime minister asked the ministries of water and power, petroleum and finance to jointly ensure that maximum gas was made available for power generation. 

The sources said that the Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company (SSGCL) wanted a three-year moratorium on benchmarks set by the Oil and Gas Regulatory Authority for reduction in &#8216;unaccounted for gas&#8217; because they were finding it difficult to reduce theft and other system losses. 

The proposal was opposed by Ogra which said the gas companies had been given loss-reduction targets a decade ago and still their losses were among the highest in the world. A one per cent loss of natural gas was equivalent to not setting up a large fertiliser plant, resulting in loss of billions of rupees in foreign exchange for fertiliser imports, an official said. 

Mr Gilani ordered the ministries, Ogra and gas companies to examine their performance and discuss how the losses could be brought down.


----------



## Omar1984

*KESC raises Rs6.3bn in right issue ​*

The relentless foreign inflow of funds into the stock market &#8212; net buy of $5.98mn on Thursday &#8212; raised the aggregate portfolio investment by the offshore investors to a staggering $54mn in just 11 days. - Reuters/File photo 


KARACHI: Karachi Electric Supply Corporation has raised Rs6.3 billion by the issue of right shares at 14.5 per cent.

A notice released on Thursday by the power monopoly, followed the close of period of payment/renunciation of rights on March 2, stated that the KES Power Limited -- the overseas parent had fully subscribed to its allotted 1.805 billion right shares issued at Rs 3.50 per share. 

KES Power, the private equity arm of Abraaj, the giant firm based in Dubai, holds 72.17 per cent of the KESC stock. The government, being the second largest shareholder with 25.66 per cent of the total shares, also managed to pump Rs2.245 billion of cash into the beleaguered power company, thus fully subscribing to its portion of the right offer. 

Minority shareholders subscribed Rs0.232 million against the right offer of 190.1 million.

In the notice at the Exchange on Thursday, KSE stated: &#8220;KESP had given an undertaking to subscribe any unsubscribed portion of the right shares of the minority shareholders in addition to its own portion of the rights issue and that remittance process of the shortfall in the minority shareholders&#8217; subscription amounting to Rs190 million has been initiated.&#8221; 

The company said the process would be completed within 14 business days from the closing date ie by March 22.

The KESC which carries substantial debts and deficit on its balance sheet is banking upon fresh equity to improve its debt-to-equity and liquidity ratios, reduce cost of financing and &#8220;enhance profitability for the benefit of all stakeholders.&#8221; Abraaj has pledged to pour a huge sum of $361 million in the company, through KES Power, in the next three years. 

Foreign inflow

The relentless foreign inflow of funds into the stock market &#8212;net buy of $5.98 million on Thursday &#8212; raised the aggregate portfolio investment by the offshore investors to a staggering $54 million in just 11 days. 

Gross foreign buy stood at $9.51 million, while gross sale amounted to $3.53 million. 

Banks reduced their portfolio by net sale worth $4.37 million. The equity market was buoyed by the net purchases by overseas investors, which shot the KSE-100 index up by 95 points to 9,880 on Thursday.


----------



## Omar1984

*Japanese Economic Zone to be set up ​*
Karachi: Japan Special Economic Zone (JSEZ) will be set up near Dhabeji and Japanese investors will be provided with all facilities and security, said Zubair Motiwala Advisor to Chief Minister Sindh on Investment while meeting a Japanese delegation headed by Gota Yamamoto DCM Japan Embassy, stated a press release.

In this regard a 2000 acre land has been allocated for Japan Special Economic Zone. The JSEZ will be set up 35 kilometers away from Karachi airport and 17 

kms from Port Qasim, near a railway line.

He said the Sindh government will give tax holidays and provide foolproof security to the Japanese investors and also briefed the delegation about the investment opportunities in the province.

The delegation emphasized more on bilateral trade between the two countries 

and appreciated the JSEZ project and said the Pakistani market had a lot of potential for investment. They suggested that in JSEZ project import of spare parts from Japan should be duty free. Members of the delegation said they will talk to the government so that the project can be started soon.


----------



## Omar1984

*Asia becomes largest Pak exports destination ​*
Karachi &#8212;Expo Pakistan 2010 has succeeded in obtaining orders worth $ 80 million for export of Pakistani products while negotiations for another $ 30 million exports of products are in progress. Official sources having information about the deals reached by Pakistani businessmen with the visiting foreign delegations said that Pakistan has diversified its exports and foreign buyers are fully satisfied with the quality of Pakistani products. 

Meanwhile the Chief Executive of Trade Development Authority of Pakistan (TDAP) Mohibullah Shah in an interview with a private TV channel said Monday that Asia has taken the number one position for export of Pakistani products, followed by Europe and the United States. He said this has happened because of diversification of exports due to recession in the western countries. He said we need to be conscious of challenges occurring around us to channel exports to non traditional markets. 

Mohibullah Shah said Asia is the largest destination of Pakistani exports for the first time and overtaken Europe and America. The major countries importing Pakistani products are from the Gulf, Middle East, China, Iran, Turkey, Korea and South East Asian Nations. He said demand from these countries is for textile products, gaments, rice, handicrafts, organges and Mangoes. He said Motor cycles and CNG rickshaws manufactured in Pakistan have also been exported to Egypt and East African countries. He said there is also demand in these countries for cosmetic products, marble and granite, fans, cutlery items, surgical and medical equipment. 

Replying to a question he said due to Expo Pakistan 2010 volume of business would increase as the visiting businessmen not only talked of trade but investment through joint ventures. He said they have shown interest in Pakistan in many areas including water treatment plants, housing, textile and valu added products, alternative energy, gems and jewelry and electronics. To another question he said Pakistan has been offered 10,000 english language teachers jobs by Yemen and more than 300 professors. He said there is also demand for doctors, nurses from Romani and other European countries.

Reactions: Like Like:
3


----------



## Omar1984

*Saudi Arabia lifts ban on Pakistan seafood ​*
KARACHI: Adviser to Sindh CM Sharmila Faruqui said that Saudi Arabia lifted a ban from import of Pakistani seafood. 

Talking to a delegation of seafood exporters at her Sindh Secretariat Office on Friday, she maintained that matters related to export of Pakistani seafood had been finalized with Saudi government officials and Pakistan waters fish and other marine products were being exported to Saudi Arabia and other Gulf states. 

The adviser mentioned that several countries had issued health certificates to Pakistan regarding fish, prawn and other marine products. *She added that Pakistani seafood were free from cholera microbe or any other epidemic disease while in the past a propaganda was launched that Pakistani seafood were contaminated with cholera microbe but later laboratory tests conducted by Gulf states and other countries had dispelled it and now export of Pakistani seafood was going on to these countries. *

Sharmila noted the government has paid special attention to modification of fishing boats and the Sindh government had taken strict measures in this regard. She said the government is providing nearly 75 per cent subsidy to boat owners for modification purpose.

Reactions: Like Like:
2


----------



## ajpirzada

*Foreign Firms Keen on Investing in Pakistan*

15 March 2010 ISLAMABAD &#8212; Foreign business and industrial houses have confirmed their plans to continue to invest in Pakistan despite certain difficulties.
These difficulties relate to an uncertain law and order situation on the back of terrorist activities in the country&#8217;s western region. But, seventy-four per cent of the foreign investors already operating in Pakistan are interested in going ahead with new investments over the next two years and beyond.

This is indicated in the latest &#8220;Perception Survey 2009,&#8221; conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), the results of which have just been unveiled. Farrukh H. Khan, President of OICCI, said: &#8220;the survey is based on responses from 71 per cent &#8212; or 124 out of 181 &#8212; of the chamber&#8217;s members, representing diverse sectors. It is representative of the sentiments of foreign investors, operating in Pakistan at present.&#8221; The pro-investment sentiment according to the similar survey in 2008 was &#8232;76 per cent.

This small decline, is attributable to the rising cost of doing business, continued military fight against terrorism, and slackness in the governance &#8232;standards.

But, the plus point is that &#8220;113 of the present investors do not plan to curtail their business due to such concern.&#8221;

The chamber surveyed 13 regulatory institutions. Sixty-two per cent respondents are &#8220;dissatisfied&#8221; with the performance of the electricity supplier Water & Power Development Authority and National Power Regulatory Authority. But, 86 per cent respondents are &#8220;satisfied&#8221; with the operations of State Bank of Pakistan (SBP), the central bank, Security & Exchange Commission of Pakistan and the Federal Bureau of Revenues. Ninety per cent of them appreciated the working of Pakistan Telecom Authority.

The uncertainty is impacting future FDI inflows, business investment, and expansion. &#8220;Most of the companies tend to be conservative as far as bringing fresh capital in 2010.&#8221;

Farrukh Khan said: &#8220;the law and order is declared as the No.1 challenge to business by 90 investors.&#8221; The slowdown in international capital movements following the global financial crunch in 2008, has also translated into a 37 per cent FDI inflow in 2009, compared &#8232;to 2008.

The overall sentiment is quite upbeat. Farrukh Khan said: &#8220;the general tone of the investors surveyed and the information they provided is positive.&#8221; But, he said that OICCI expects the government to adopt &#8220;an effective strategy to address investors&#8217; concerns, if it wishes to bring about a paradigm shift in attracting foreign direct investment.&#8221;

Farrukh Khan said that in contrast to the popular perception, &#8220;Pakistan has various positives and plus points to offer to investors. Almost 60 per cent of the respondents find the overall business climate to be &#8216;average&#8217; and 40 percent call it as &#8216;poor.&#8217;&#8221;

Corporate governance has to be improved, because 57 per cent of the investors consider it to be &#8216;average&#8217; or &#8216;acceptable,&#8217; but, another 10 per cent see it to be &#8220;above average&#8221; or even &#8220;good.&#8221;

However, 114 members &#8212; or 86 per cent of those surveyed &#8212; feel &#8220;weak government policy implementation as the chief obstacle to smooth operations of businesses.&#8221;

Pakistan is considered to be &#8220;relatively better,&#8221; but only &#8220;eight per cent prefer Pakistan in comparison to other countries, including India, China, and Middle East in the region.

The survey considered that ministries of finance, communications, and commerce are performing &#8220;reasonably well,&#8221; but the working of the ministry of ports and shipping is viewed &#8232;as &#8220;average.&#8221;

There are bad eggs, too. Sixty-nine per cent investors described ministries of water, power and health as &#8220;the most unpopular,&#8221; and their performance as &#8220;below average.&#8221; Working of ministries of law, Justice and interior, too, is viewed as poor. The OICCI opinions and views are considered to be the most authentic. They provide the best professional corporate guide to potential investors and business partners.

(Views expressed by the author are his own and do not reflect the newspaper&#8217;s policy)

Foreign Firms Keen on Investing in Pakistan

Reactions: Like Like:
1


----------



## Omar1984

*Rs125b projects to boost development​*
The upcoming five-year plan for Information & Communication Technologies (ICT) would include projects worth Rs125 billion with an aim to utilise the extraordinary capacity of this sector to boost the country&#8217;s overall development, sources told &#8216;The News&#8217;. 

Sources said a total of Rs25.07 billion would be allocated for software exports, Rs27.4 billion for the quality of IT education, Rs30.49 billion for e-governance, Rs1.05 billion for e-commerce and IT security, Rs1.3 billion for the promotion of Urdu language in IT, Rs3 billion for hardware initiative, and Rs37.5 billion for telecommunication and network infrastructure. 

In the field of software exports, projects worth Rs25.07 billion would be initiated comprising IT market and industry size (Rs40 million), promotion of IT industry through media (Rs100 million), promotion of entrepreneurial start-ups (Rs80 million), development of effective Intellectual Property Rights (IPR) regime (Rs10 million) and awareness about opportunities for Pakistani companies (Rs20 million), establishment of business incubators (Rs200 million) and proactive match-making (Rs100 million).

The projects would also include the showcasing of brands (Rs500 million), interest free financing (Rs250 million), certification of companies (Rs800 million), mergers and acquisition (Rs400 million), establishment of internet city (Rs10 billion), building software technology parks (Rs10 billion), certification of ITeS/BPO (Rs400 million), study on investment guarantee (Rs20 million) and training of youth (Rs50 million), certification of individuals (Rs100 million), software technologies centre (Rs500 million), development of smart technologies programme (Rs500 million), and establishment of centre for cognitive science (Rs1 billion).

For the quality of IT education, project worth Rs27.4 billion would include vocational/technical skills programme (Rs15 billion), scholarships for IT education (Rs1.5 billion), IT infrastructure in educational institutions (Rs10 billion), centres of excellence for IT training (Rs440 million), establishment of IT placement centres (Rs100 million), capacity building of National Computing Education Accreditation Council (Rs60 million) and strengthening of boards of Technical Education (Rs300 million).

To promote e-governance, projects costing Rs30.49 billion would comprise development of e-services applications (Rs500 million), greater automation drive (Rs500 million), capacity building of departments (Rs400 million), infrastructure for public access to e-services (Rs400 million), building ICT infrastructure (Rs2 billion), incentives for promotion of IT (Rs10 million), training of government employees (Rs250 million), establishment of online access points (Rs300 million), expansion of e-services to rural areas (Rs100 million), public awareness programmes (Rs30 million), LRMIS for provinces (Rs1 billion) agency specific applications (Rs1 billion) e-government related ongoing projects (Rs3 billion), ministry of interior projects (Rs20 billion) and automation of CDNS (Rs1 billion).

The projects in e-commerce and IT security would cost Rs1.05 billion including awareness about information security (Rs30 million), cyber laws improvement programme (Rs50 million), establishment of certification authority regulatory (Rs500 million), Pakistan Internet Exchange (Rs100 million), e-payment solution (Rs200 million), Computer Emergency Response Team (Rs100 million) and development of e-commerce related services (Rs70 million).

For the promotion of Urdu language in IT projects costing Rs1.3 billion would be launched comprising availability of support for Urdu in international software products (Rs200 million), programmes for conversion of electronic knowledge sources (Rs200 million), development of SW & Content in Urdu language (Rs200 million), localisation of government websites (Rs400 million) strengthening centre of excellence in Urdu Informatics (Rs100 million), development of Urdu applications (Rs100 million) and training programme for localisation (Rs100 million).

In the field of ICT hardware, projects worth Rs3 billion would be initiated consisting of provision for free land to manufacturing concerns (Rs2.5 billion) and Investment Insurance/Guarantees Programme (Rs500 million).

Projects worth Rs37.5 billion in telecommunication and network infrastructure would include Alternate International Connectivity (TAE) (Rs4 billion), deployment of solutions for detecting and eliminating grey traffic (Rs500 million), secure communication programme (Rs1 billion), satellite communication programme (Rs32 billion).

Sources said the vision and strategy for the plan would revolve around &#8216;inclusiveness of ICT&#8217; in transforming the socio-economic panorama and leap-forwarding into &#8216;knowledge era&#8217; by providing &#8216;universal access to education, learning and knowledge sources&#8217;, shifting from &#8216;follower&#8217; strategy to &#8216;value addition/leader&#8217; strategy, transformation from government-centred policy to private sector-centred policy, and creating demand for local ICT products and services.

They said the salient features of the plan include increasing human resources with a qualitative edge, reaching out to the international market, addressing socio-economic problems by using IT, creating industrial synergy by involving local IT industry, enhancing domestic market, and provision of fiscal incentives and legislation.

Sources further stated that the plan would help face the growing challenges in the way of promoting education and human resource development, increasing information technology exports, enhancement of e-commerce and IT security, development of computer hardware company and supporting e-government.


----------



## Hyde

we have a huge potential in our software industry. Its a very good step to invest 25 billion rupees for IT market

We are growing like 50&#37; every year and soon we can also perform a leading role in IT industry like India and Europe


----------



## Omar1984

*CDWP approves 74 projects worth Rs 510.2 bln​*
ISLAMABAD, Mar 18 (APP): The Central Development Working Party (CDWP) Thursday approved 74 projects costing Rs 510.2 billion, with a foreign aid component of Rs. 125.1 billion. The CDWP meeting, chaired by Deputy Chairman of the Planning Commission Sardar Assef Ahmad Ali, approved 36 projects costing Rs.326.0 billion of infrastructure sector, 26 projects costing Rs.158.0 billion of social sector and 12 projects costing Rs. 26.3 billion related to agriculture and industry sector. 

With implementation of six power sector projects costing Rs 87 billion, shortage of power in the country would be controlled by efficient distribution and enhancement system of electricity by DESCOs. 

The CDWP also considered five projects of water sector including Chashma Right Bank Canal costing Rs. 61 billion located in NWFP with capacity to irrigate additional about 300,000 acres of land. 

A Committee under the chairmanship of Deputy Chairman, Planning Commission will finalize technical and financial details. Six flood dispersal structures on Nari River (Phase-I-II) in Balochistan were also cleared. 

In addition, other small water sector projects relating to flood management and control were also considered. 

Sixteen projects of transport and communication sector with a total cost of Rs 56.6 billion including mainly projects of Gwadar Deep Sea Water Port, Extension of M-4, Rehabilitation of Rasheed Wagon-Nasirabad Roads, Karachi Transport Improvement Projects, Kolpur Bypass and Bridge Across River Swan linking Attock and Chakwal were approved. 

Main projects of social sector include mega vertical projects of health sector to provide improved health facilities to the masses. In this connection three projects with a cost of Rs. 93.7 billion approved namely Expanded Program on Immunization (EPI), GAVI Grant), National Programme for Family Planning and Primary Health Care. 

The Lady Health Workers&#8217; Programme costing Rs 53.0 billion was approved (Phase-II), and Prime Minister&#8217;s Program for Prevention and Control of Hepatitis was also approved. 

Under President Development Package for NWFP, CDWP approved projects costing Rs 2.0 billion for medical equipment, ambulances for DHQ Hospitals in NWFP while blood transfusion services will be started all over the country. 

Under President&#8217;s package for NWFP, 1,000 primary schools will be established in various districts of NWFP under a project with cost of Rs. 3.7 billion. The project will help promote basic education in the conflict affected areas of NWFP especially female education. 

Main projects approved in agriculture sector included Pak-China Cooperation for Agricultural Research and Development (Phase-II) and Pak-China National Project for Improved Rice Processing which will assist in enhancing three to four times wheat and sugarcane production. 

Storage projects such as Grain Storage Project, construction of steel silos of 650000 metric ton and Pak-China National Project for CA and advanced ventilated cold storage will enhance storage capacity by 6,50,000 MT while this will also save food wastage. 

Similarly, REKO DIQ Gold and Copper project costing 8.7 billion was also approved. It will produce 38,000 tons of copper, 15,000 ounces of gold per year. Upon completion, income from the project will be about Rs 15.0 billion per year. 

The CDWP also conceptually cleared projects of establishment of facilities for coal cleaning, coal gasification and coal combustion project to improve Financial Reporting and Auditing (PIFRA-II) (Phase-II). 

The CDWP also approved establishment of 268-bed DHQ hospital Multan and establishment of Child Health Care institutes at Karachi and Sukkur. 

Of the 74 projects, 63 projects costing Rs 365 billion will be financed by the federal government through federal PSDP while 11 projects costing Rs 145 billion will be financed by the provinces through respective provincial ADP.

Reactions: Like Like:
1


----------



## ajpirzada

* Shaikh likely to push Pakistani fiscal discipline*



Friday, March 19, 2010
ISLAMABAD: Abdul Hafeez Shaikh, the man charged with steering Pakistan&#8217;s economy, has wide financial and management experience and is likely to focus on tight fiscal discipline as inflation remains a threat.

Shaikh, a former privatisation minister, will be put to the test as Pakistan&#8217;s weak government attempts to energise a struggling economy battered by a Taliban militant insurgency and starved of foreign investment.

He must also try to strike a balance between policy demands by the International Monetary Fund, which provides critical financial support for Pakistan, and the government&#8217;s desire not to alienate voters who could be hurt by those policies. 

Shaikh will not be a full-fledged minister as he is not a member of parliament, but he is expected to have the same level of authority.

Shaikh&#8217;s background as a general partner in the growth capital company New Silk Route Partners, which focuses on private equity opportunities across Asia and the Middle East, suggests he will pay close attention to market needs.

&#8220;He understands the local economy and also has the skills to negotiate with the IMF and other bilateral and multilateral donors,&#8221; said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd.

Having served as World Bank country head in Saudi Arabia, Shaikh will be in tune with what Pakistan needs to do to secure sustained international financial support &#8212; raising taxes, taming inflation and generating more revenue to meet expenditure. But President Asif Ali Zardari will likely fight some tough measures for fear they could trigger social unrest and make him more unpopular. 

Shaikh, 55, served as privatisation and investment minister during the turbulent nine-year rule of former president Pervez Musharraf, a stint that may prepare him for uncertainty under Zardari.

During that period, he concluded transactions worth $5 billion.

Shahid Shah adds from Karachi: Economic analysts have welcomed Shaikh&#237;s appointment of as finance advisor, but expressed doubts on his success in a corrupt system.

Abid Hasan, a former advisor to the World Bank told The News, said that Shaikh enjoys credibility in both international and local circles.

He is qualified and a man of integrity, he said. &#8220;But the problem is our system, which is corrupt. Whether it will accept him or not remains a question.&#8221; Hasan said in a country where a large number of parliamentarian and even judges do not pay taxes, a person like Hafeez Shaikh stands little chance of success. 

A good person is better than an incompetent person. But at the end of the day, I wish him good luck.&#8221;

Economist Kaiser Bengali said Shaikh could make a difference if he adopts sound economic policies. &#8220;It is not the matter of individual, but the policy.&#8221;

Shaikh likely to push Pakistani fiscal discipline


----------



## ameer219

*Spot rate reduced by Rs 50, business improves on cotton market*
Business Recorder [Pakistan's First Financial Daily]


KARACHI (March 19 2010): Slight improvement was seen on the cotton market on Thursday as some needy buyers made purchases to meet the near term needs, dealers said. The Karachi Cotton Association (KCA) official spot rate was lowered by Rs 50 to Rs 5450, dealers said.

In the ready business above 5000 bales of cotton changed hands between Rs 5200-5400. Phutti prices in both the Punjab and Sindh were at Rs 2100-2200, they added. Market sources said that some mills were active to make new purchases to meet the immediate needs as ginners were looking in flexible mood.

The ginners were keen to sell the unsold stock to save themselves from the losses, they said adding that it is likely that the prices may show further softness in the near future. Commenting on the strike they said that nearly 300 spinning mills are closed in protest against the ceiling on the exports of cotton yarn.

The Pakistan Cotton Ginners Association (PCGA) issued its fortnightly phutti arrival report till March 15 at 12.683 million bales and unsold stock is nearly above 0.3 million bales, which is not enough to meet the local demand, brokers said.

On Wednesday the NY cotton futures settled lower on sales by small investors as the market treaded water in range-bound dealings, with more of the same trading pattern expected this week, brokers said. The key May cotton contract fell 0.67 cent to end at 81.17 cents per lb, dealing from 80.86 to 81.90 cents.

The range stayed within Tuesday's 80.11 to 81.95 cents band. July cotton shed 0.40 cent to finish at 81.99 cents. New-crop December lost 0.52 cent to end at 74.55 cents. Volume traded in the May contract was at a modest 5,543 lots at 2:45 pm EDT (1845 GMT).

The following deals were reported: 3000 bales of cotton (exporter to mill) sold at Rs 5300, 600 bales from Multan at Rs 5300, 1000 bales from Haroonabad at Rs 5200 -5300 and 400 bales from Kabula at Rs 5400.


----------



## Omar1984

*Appointment of new finance advisor to give impetus to economy​*
ISLAMABAD, Mar 19 (APP): Prime Minister Syed Yusuf Raza Gilani Friday said appointment of an experienced economist as Advisor will give fresh impetus to the management of Pakistan&#8217;s economy.Welcoming the new Finance Advisor Abdul Hafeez Shaikh, who called on him here at the PM House, the Prime Minister said his appointment at this juncture will send a strong signal to the investors, business and trade circles about the government&#8217;s commitment to economic reforms, financial management and growth that is beneficial for all.

The Prime Minister expressed confidence that the induction of an economist in the cabinet will help calibrate policies for boosting the economic growth.

The Prime Minister said the economy should focus on creation of economic opportunities and employment to help improve quality of life of common man. 
He said the government through stringent measures had been able to check the downward trend of economy and bring about stability. He said now there was a need to prioritize the specific areas contributing towards sustainable economic growth.

The Prime Minister asked the Economic Advisor to monitor the fundings of the special initiatives of the government for the poor like Benazir Income Support Program (BISP) and Wasela-e-Haq Programme. 

The management of circular debt of energy sector was also a matter of immediate concern to help ease the power shortage situation in the country, he added.

Thanking the Prime Minister for reposing his confidence, Dr. Abdul Hafeez Sheikh assured to implement the government&#8217;s economic agenda in accordance with the priorities determined by the government.


----------



## Omar1984



Reactions: Like Like:
2


----------



## ajpirzada

*Abdul Hafiz vows to improve living standards of people*
Updated at: 0401 PST, Saturday, March 20, 2010
ISLAMABAD: Newly appointed Finance Advisor Dr. Abdul Hafeez said Friday such financial planning would be evolved which will help boost economy and improve the living standards of people, Geo news reported.

This he said talking to Geo news after calling on PM Yusuf Raza Gilani here in Islamabad.

Detailing on the meeting, he said we discussed financial policies of government and ways to bring improvement into them.

PM hoped with the appointment if Abdul Hafeez as financial advisor growth in investment sector will be seen and the trade activities will get a boost.

The Premier said, the issue of circular date will soon be resolved in order to get rid of power crisis.

There is room for growth in Pakistan economy, advisor said on the occasion.

Abdul Hafiz vows to improve living standards of people - GEO.tv


----------



## AZADPAKISTAN2009

This guy has big nose he will do fine

Reactions: Like Like:
1


----------



## PakSher

I kind a agree with the long nooooooooosssssssseeee comment.


----------



## Luftwaffe

*Banks in shock as EOBI cheques fail*
Tuesday, March 23, 2010
The News

KARACHI: Cheques of a local financial institution, amounting to Rs.31 billion, have bounced &#8212; the biggest such default in the history of Pakistan&#237;s financial sector, bankers said on Monday.

Several leading treasurers of financial institutions claimed that the Employees Old-age Benefit Institution (EOBI), which falls under the ministry of labour, placed an order to buy treasury bills worth 31 billion rupees with more than dozen banks and development financial institutions.

The deals were duly made, but at the time of clearance, none of the cheques were honoured because the authorised signatures did not match banks&#237; records, they said.

No official comment was available from EOBI when contacted.

But one of its officials, who spoke on the condition of anonymity, said that he has also learnt from the market sources that cheques had bounced. He, however, said EOBI&#8217;s does not lack funds and has a bank balance of Rs41 billion.


----------



## ejaz007

*Circular debt hits E&P companies 
Drilling drops 22pc in first 8 months of FY10*
Thursday, March 25, 2010
By our correspondent

KARACHI: The rising circular debt has even hit the oil and gas exploration sector, where drilling activities dropped by 22 per cent during the first eight months of the current fiscal owing to the liquidity crunch, an official of the ministry of petroleum said on Wednesday.

Only 67 wells have been drilled so far, including carry-over wells, compared will 86 wells during the same period last year, said the official, requesting anonymity. He said if carry-over wells of the last year are excluded from this total, the number of new wells remains only 40 this fiscal  11 wells lower than last year.

Oil and Gas Development Company (OGDCL), which covers 30 per cent of the countrys exploration area, drilled 27 wells as an operator, including carry-over wells, compared with 41 wells last year. Pakistan Petroleum (PPL) drilled only one development well as the company largely operates through joint ventures.

Currently, circular debt has risen to a whopping Rs250 billion to-date, said the official, who attended the Senate Standing Committee meeting on Finance. Last year, the government issued term finance certificates worth Rs175 billion to resolve the circular debt issue and improve the financial health of the state-run companies, he added by saying the issue remained unresolved.

During the last year, the combined receivables of the major listed companies OGDC, POL and PPL rose by around Rs24billion, he said.

Had this amount not withheld by the refineries and gas-marketing companies, these companies would have drilled 35-40 more wells, the official said. This is assuming  average daily appraisal/development cost of $30-35,000 and an average of 150 days to complete a well, officials say.

Farhan Mehmood, head of research at Topline Securities, said developing existing reserves remains as important as finding new hydrocarbon reserves. Out of 50 development/appraisal wells targeted for FY10, companies drilled only 27 wells during the first eight months of this fiscal.

Last year, 37 wells were drilled during the same period, he said. On the exploration side, performance was at par relative to last year. Industry sources said that poor law and order situation in parts of Pakistan, especially Balochistan and northern parts of the country, were also hampering new drillings.

Farhan, however, said persistent liquidity crunch, led by circular debt, has become a new factor to hit the drilling activity. During this period, eight oil & gas discoveries have been made compared with the five of last year.

Circular debt hits E&P companies


----------



## ejaz007

*Petroleum ministry to offer new exploration blocks in June *
Thursday, March 25, 2010
By our correspondent

KARACHI: The Ministry of Petroleum will offer new blocks in June to expedite exploration of oil and gas reserves as the country fights severe energy crisis, Secretary Petroleum, Kamran Lashari, said on Thursday. 

The blocks will be offered to local and international exploration production companies, just months after 40 leases were auctioned under the new petroleum policy, he said here on sidelines of Shell Eco-Marathons launching ceremony.

We will offer nine or 10 blocks in June including one offshore lease, he said, adding the petroleum ministry was also working on a separate policy for exploiting tight gas reserves. He said it was wrong to say that work on Mashal liquefied natural gas import project has stalled as talks were underway for construction work to start soon. But we have to realize that there are no quick solutions to the present energy crisis. 

Shell Pakistan, Chairman and Managing Director, Zaiviji Ismail, said his company was committed to meeting energy deficit by focusing on the upstream sector. However, he said distribution margins on sale of petroleum products are not satisfactory. Pakistan is offering the lowest margins to oil marketing companies in the region. 

Petroleum ministry to offer new exploration blocks in June


----------



## ajpirzada

*Pasha panel envisages 5&#37; GDP growth rate*



Sunday, March 28, 2010
By Mehtab Haider

ISLAMABAD: *The panel of economists led by Dr Hafeez A Pasha has envisaged an average GDP growth rate of five per cent over the next five years (2010-2015) ranging from 3 per cent to 6.8 per cent from 2009-10 to 2014-15 respectively in its report, which will be submitted to the government on April 10*.

The panel also recommended that the government should end loadshedding by improving power generation over the next five years that will give an impetus to economic growth on sustained basis.

However, the panel of economists avoided plunging into controversy on exact poverty figures as there was no number given in the finalised report contrary to the draft report in which the panel had estimated that 38 per cent of population was living below the poverty line. The decision to give 38 per cent population living below the poverty line faced severe criticism because there was no data available on poverty survey, having no basis to come up with poverty figures.

*The Planning Commission and the UNDP&#8217;s joint venture -- the Center for Poverty Reduction and Social Policy Development (CPRSPD) -- estimated poverty level at 17.2 per cent on the basis of the latest survey done by the Federal Bureau of Statistics for 2007-08, but the government refused to own this figure despite validation done by the World Bank.*

The panel of economists also envisaged increase in tax to GDP ratio in the range of three to four per cent in the next five years contrary to the government&#8217;s ambitious plan to jack up this ratio by five per cent, up to 15 per cent from existing ratio of over nine per cent.

Pasha panel envisages 5% GDP growth rate


----------



## ameer219

From today onwards, any posts on economy section on my side will be on this thread.

*
Germany has invested $39.2 million during this fiscal*


KARACHI (March 28 2010): Germany has made an investment of dollar 39.2 million during the current fiscal year so far, Nasreen Ali Director General Board of Investment said here on Saturday. There is an ample opportunity to increase bilateral trade between Pakistan and Germany, she added.

She was talking to a four-member delegation of Pakistan-German Business Forum led by Saifuddin Zoomkawala. Dr Ismail, Mian Abrar Ahmed and some Board of Investment officials were also present on the occasion. Nasreen pointed out that only 2.97 percent of the global German investment is in Pakistan.

So the Pak-German Business Forum should carry out marketing among the German investors in an effective manner because Pakistan offers most lucrative investment opportunities in the region. For example, the cost of doing business is less as compared to China, India, Bangladesh, Sri Lanka, Egypt and Iran. She also said that a legislation on Special Economic Zone would be finalised soon.

The work on Japan Economic Zone is fast progressing. Similarly, special economic zones for other countries could also be set up. The delegation stated that it was working towards creating close relationship with the German investors and traders and with the co-operation of the BoI it would induce the German investors to invest in Pakistan more effectively.-PR

Copyright Business Recorder, 2010
Business Recorder [Pakistan's First Financial Daily]


----------



## ameer219

*Activity at Karachi and Qasim ports*


RECORDER REPORT
KARACHI (March 28 2010): The Karachi Port handled 135,877 tonnes of cargo including 84,928 tonnes of import cargo; 50,949 tonnes of export cargo and 5,018 loaded and empty containers during last 24 hours ended at 0700 hours on Saturday. The total import cargo of 84,928 tonnes comprised of 25,157 tonnes of containerised cargo; 1,949 tonnes of bulk cargo; 9,117 tonnes of coal; 6,700 tonnes of rock phosphate and 42,005 tonnes of oil/liquid cargo.

The total export cargo of 50,949 tonnes comprised of 35,070 tonnes of containerised cargo; 443 tonnes of bulk cargo; 6,603 tonnes of cement; 833 tonnes of rice and 8,000 tonnes of oil/liquid cargo. Seven ships namely Raazi, Kumait, Bsle Pacific, President Jackson, Hyundai Emperor and Queen Arrow-II sailed out to sea during the reported period.

Six vessels viz President Jackson, Allaince St. Louis, Ken Gallent, Sammi Superstar, Kumsan and Adriatic Arrow are currently at the berths. Three ships namely Allaince St. Louis, Barwaaqo and Kota Akbar expected to sail on Saturday, while four vessels viz X-Press Annapurna, Sunrise Lilac, Quetta and Gemini are expected to sail on Sunday.

Six vessels viz MT Johar, Kota Akbar, Allaince St. Louis, Sammi Superstar, Adriatic Arrow and Al-Karim-M due to arrive on Saturday, while eight ships namely Constancy, Navi G8 Leon, Hum Chin, APL Chicago, Bunga Raya Sepuluh, BC San Francisco, YM Asia and Fu Yuan Shan are due to arrive on Sunday.

PORT QASIM
The Port Qasim handled 82,757 tonnes of cargo includes 53,171 tonnes of import cargo; 29,586 tonnes of export cargo and 3,192 loaded and empty containers (TEUs) during last 24 hours on Saturday.

The total import cargo of 53,171 tonnes includes 11,491 tonnes of palm oil; 9,400 tonnes of phosphoric acid; 1,650 tonnes of MEG and 30,630 tonnes of containerised cargo. The total export cargo of 29,586 tonnes includes 8,868 tonnes of rice; 6,918 tonnes of cement and 13,800 tonnes of containerised cargo.

Three ships namely MT Al-Salam-II, MT Sichem Defender and MT Bunga Melati Dua sailed out to sea during last 24 hours, while two more ships namely CV Maersk Novazzano and MT Sichem Melbourne are expected to sail on Saturday afternoon. Nine vessels viz CV Maersk Novazzano, CV MSC Jemima, MV Odin Pacific, MV Super Star-II, MV Green Line, MT Sichem Melbourne, MT Sichem Defender, MT Malvern and MT Bunga Melati Dua are currently occupying berths to load/offload containers, rice, cement, MEG, LPG and phosphoric acid respectively during last 24 hours.

One ship namely Eleonora carrying rice is currently at the outer anchorage. Two vessels: Oil tanker MT Al-Kuwaitaih and edible oil vessel MT Bum Chin are expected to take berths at FOTCO Oil Terminal and Liquid Cargo Terminal respectively on Saturday. One ship namely MV Eleanora carrying rice due to arrive on Saturday.

Three vessels viz CV Maersk Ohio, CV Al-Wajba and MT Gey Hope with containers and paln oil are due to arrive on Sunday, while four more ships namely MT Platters, MT Oriental Oki, MT Precedence and MT Palanimalai carrying crude oil, chemicals, palm oil and phosphoric acid are due to arrive on Monday.

Copyright Business Recorder, 2010

http://www.brecorder.com/index.php?id=1036722&currPageNo=1&query=&search=&term=&supDate=


----------



## ameer219

*Pakistan's corporate earnings rise as economy looks up*


(MENAFN - Khaleej Times) The corporate earnings are rising on the back of a spike in the economy, and profitability is projected to improve further by end-June. 

The corporate profits rose 88.2 per cent on year-on-year basis to a healthy Rs51.2 billion during the fourth quarter &#65533; October-December &#65533; of calendar year-2009. The profits were up by Rs27.2 billion in the like quarter of cy-2008. This is indicted in the corporate reports for the quarter. 

The boost in corporate profitability has been significantly pushed up by better performance of two key sectors &#65533; banks and oil marketing companies (OMCs). The OMCs earned more than ever before on the back of large furnace oil sales and gains made on inventory. The banks, on the other hand, benefited as they had to make reduced provisioning for non-performing loans (NPLs). 

Despite these positive indications, the benchmark Karachi Stock Exchange KSE-100 index reported an overall return of only 1.3 per cent since the start 2009.

But the past 5-year average was 15.1 per cent. This is attributed to months of the apprehensions of imposition of a Capital Gains Tax (CGT). But, the picture by now has become clear as the government has announced that CGT will be enforced only gradually and in stages, starting July 1. 

Which direction will profitability move by June 30 when the current FY-2010 ends? The equity and financial market analysts are quite upbeat. For instance, JS Global Capital analyst Syed Atif Zafar reports: "We expect corporate earnings to rise 22 per cent in FY-2010, with banking, oil marketing and auto sectors leading the way." The projection is based on results of 38 companies, with 76 per cent market capitalisation of KSE-100 index. The index was at 10,127 points this Friday. 

Nine major banks earned cumulative profits of Rs19.4 billion during Quarter-4, October-December, of cy-2009, up from a poor Rs3.8 billion in the like quarter of cy-2008. Although the banks' profitability improved, their business results were unable to push stock prices in general as the sector's market capitalisation increased a meager 1.1 per cent, over a year. The sector's earnings are projected to grow by 17 per cent in 2010 as the amount of provision against NPLs declines, while the credit off-take improves on the back of gradual economic recovery." 

The power sector earnings rose by 44 per cent on a yearly basis during this period. The sectors' market capitalisation increased 9.0 per cent, year to date. The sector's sample includes Hubco and Kapco which together reported profits of Rs3.1 billion, up from Rs2.2 billion in the like period of 2008. The sector's growth is projected at 8.0 per cent. 

Five key oil and gas corporates reported Q-4 profits of Rs4.7 billion &#65533; as compared to a loss of Rs4.6 billion in Q-4 of 2008, when the sector had undergone inventory and foreign exchange losses. At 3.0 per cent, the sector's growth was small, but the projection for the FY-2010 is a 22 per cent growth. Exploration and production sector profitability declined by 5.0 per cent, due to lower wellhead gas prices, despite new production flows. 

Larger sales volumes and higher prices improved auto sector profits to Rs650 million in Q-4, up from Rs102 million in Q-4 of 2008. 

A 60 per cent growth in earnings is expected in FY-2010. 

Cost cutting and improved margins have helped telecom sector profitability which will grow by 24 per cent on an annual basis. 

Higher urea and DAP off-take has helped the fertilizer sector. Its projected profitability is to rise 24 per cent on an annual basis. 

The refineries witnessed reduced cumulative losses of Rs365 million in Q-4 of 2009, as there were no inventory losses. The losses were Rs3.1 billion in Q-4 of 2008. 

Higher sales volume and low retention prices slashed cement sector profitability to Rs230 million, down from Rs1.1 billion in Q-4 of 2008. 

The analysts are upbeat over the days to come. "We expect the local equity market to continue its positive momentum in 2010--the market was up 60 per cent in 2009 &#65533; best in four years &#65533; riding on gradual economic recovery, as evident from the fourth quarter of 2009 corporate profitability." The stocks currently trade at an attractive one-year forward PE of 6.9X, and at a discount of 40 per cent to the average PE of 11.6X of the regional Asian emerging and frontier markets, as defined by the MSCI.

Views expressed by the author are his own and do not reflect the newspaper's policy. 

Pakistan's corporate earnings rise as economy looks up


----------



## ajpirzada

* Over 90 industrial units start production in SIE*



Tuesday, March 30, 2010
By our correspondent

LAHORE: Over 90 industrial units have come into production in Sundar Industrial Estate including multinational, national and local companies. The infrastructure is complete and work has already been initiated on amenity areas as well.

This was disclosed at the first meeting of newly constituted Board of Directors of Punjab Industrial Estates (PIE). As notified by the Government of Punjab in its notification issued recently, the meeting of the new Board of Directors of Punjab Industrial Estates (PIE) was convened at the Head Office of PIE.

The nominated board members participated who were inducted for a fresh term of three years. In its deliberations the board of directors considered various matters including revision of prices at Sundar Industrial Estate (SIE) & Multan Industrial Estate (MIE), in addition to routine matters.

The new directors of PIE Rizwan Khalid But, Tanveer Tariq and Member Punjab Assembly Imran Ashraf also participated in the BOD meeting. It is worthwhile to mention that the number of Board directors has been reduced to 16 from 23 by the Government of Punjab recently.

Over 90 industrial units start production in SIE

Reactions: Like Like:
3


----------



## Hyde

ajpirzada said:


> * Over 90 industrial units start production in SIE*



i hope they receive electricity and the industries are not shut next year 

Seems like we are doing well in Industrial sector now, i hope their basic requirements are also being cared by the government


----------



## ajpirzada

i cant see any quick improvement in electricity problem. many other industries have already stopped working.


----------



## AstanoshKhan

A little bit about Dr. Abdul Hafeez Sheikh.





Dr. Abdul Hafeez Shaikh was appointed Federal Minister for Privatisation and Investment in April 2003. He is an economist of international repute, who was appointed as Advisor to the Prime Minister on Privatisation & Investment with a status of Federal Minister in December 2002. He was elected member of the Senate of Pakistan in March 2003.

Dr. Shaikh has over 25 years experience in policymaking and management. During 2000-2002 he served in the Sindh Government as Minister for Finance, Planning and Development. He remained country head of the World Bank in Saudi Arabia and also led assignments and advised more than 18 countries of Europe, Latin America, Asia and Africa as a senior World Bank official. Some of these countries include Pakistan, Saudi Arabia, Sri Lanka, Indonesia, Malaysia, Philippines, Thailand, Vietnam, Romania, Czech Republic, Argentina, Bangladesh, Jordan, Qatar, Malta, Botswana, Tanzania and Ghana. Before joining the World Bank, he worked at Harvard University in Cambridge, Massachusetts. He has a Ph. D in economics and authored many publications including a book on &#8216;Argentina&#8217;s Privatisation&#8217;. He also led the teams for successful privatization in many countries in the field of telecommunication, electricity, transport, aviation, banking and manufacturing.

Dr. Hafeez Shaikh had a highly successful tenure as Minister for Finance, Planning & Development in Sindh Province. He was the architect of the financial recovery of Sindh, restoring financial discipline and reducing taxes, increasing revenues, paying over Rs. 20 billion of old bills, clearing the over draft of State Bank of Pakistan of Rs. 11 billion, increasing allocation for poverty alleviation, social sector and development, and enhancing relationship of Sindh Government with international donor agencies.

His two years as the Federal Minister for Privatisation & Investment has been the most successful in Pakistan&#8217;s history. 18 transactions worth Rs 50 billion have been completed in a transparent fashion in banking, energy and manufacturing sector. Using the slogan of &#8220;Privatisation for the People&#8221; shares in several companies have been given to 0.4 million people, creating broad ownership for the privatization program. Transactions in telecom, electricity and oil distribution have been brought to an advanced stage of completion. The period has also seen a doubling of FDI and an unprecedented increase in domestic investment.

and his website will be online soon, inshallah.

Dr. Abdul Hafeez Shaikh

I personally wish him best of luck. We do need good intellects in the right places and this is one such example.

Reactions: Like Like:
3


----------



## Omar1984

*&#8216;Bilateral trade b/w Pakistan, Russia crucial&#8217;​*
KARACHI: The Consul General of Russia Andry D Demidov said bilateral trade between Pakistan and Russia could pave the way for economic development for both the countries. Russia has suffered due to the global turmoil but the economic situation has improved and Pakistan can gain advantage from the potentials in Russian economy. 

He said it during a dinner hosted by M. Farooq Afzal, Chairman Pakistan-Russia Business Council of FPCCI. Tariq Sayeed, immediate past President SAARC CCI & former President FPCCI and the Chief Guest of the occasion Sultan Ahmed Chawla made speeches while M. Mansha Churra and others were also present on the occasion. The Consul General said Pakistan and Russia should exchange delegation and ideas on modern and technical lines that will benefit both the countries. He said Pakistan instead of relying on the US should improve its trade relations with the neighbouring countries like China, Afghanistan, India and Iran including Russia, as Pakistan desperately needs economic assistance to bolster its trade. staff report


----------



## Omar1984

*Taking care of circular debt once and for all: Govt to float Rs 100 billion Sukuk bonds in May ​*

ISLAMABAD: The Ministry of Finance is planning to float Rs 100 billion Islamic Sukuk Bond in May 2010 to meet its growing financial needs as well as to retire the mounted circular debts before June 30, 2010, official sources informed on Tuesday. 

Pakistan Investment Bonds (PIBs) and Sukuk Bonds are in permanent debt and this time the government wants to raise money from Islamic banking system to finance power sector circular debts once and for all, the sources added. 

In the initial proposal the Ministry of Finance suggested floating Islamic paper with one-year maturity period. However, now they are considering other options because the central bank is already floating treasury bills with one-year maturity. The non-interest bearing bond launch on the pattern of PIBs and Islamic banks acts as a primary dealer. The cut-off yield of upcoming Sukuk Bond will be equal or slightly above the average 12.7 percent yield of PIBs. 

The investment made in the Islamic Bonds (Sukuk) would enable the investors to get a good return on their investment upon completion of the term to be fixed under the scheme. 

The government of Pakistan is a sovereign guarantor of upcoming Islamic paper. Finance Ministry official informed a local newspaper that &#8220;it&#8217;s a reserve backing paper and Islamic banks can keep this paper to fulfil State Bank statutory liquidity requirement.&#8221; Islamic banking system has very limited options of interest-free investment. The official sources informed that the circular debt position as of February 2010 was that Pakistan State Oil (PSO) receivables stood at Rs 109 billion and its total liabilities were estimated at Rs 112.52 billion. 

According to the details of the PSO&#8217;s receivables, an amount of Rs 34 billion is due against WAPDA, Rs 17.32 billion against KAPCO, Rs 33.95 billion against HUBCO, Rs 1.32 billion against PIA, Rs 1.30 billion against Power Holding Company and Rs 9.98 billion that are yet due or are likely to become due in the future. 

PSO&#8217;s payables to the local refineries included Rs 25 billion to PARCO, Rs 12 billion to PRL, Rs 8 billion to NRL, Rs 15 billion to AR, Rs 4 billion to Bosicor and Rs 0.45 million to others. Some Rs 24 billion are also payables to the local refineries, the official sources further informed. 

Payable subsidy: The Ministry of Finance has to pay a subsidy to the tune of Rs 43 billion to PEPCO, Rs 13 billion to Karachi Electric Supply Company, Rs 15 billion on Term Finance Certificates (TFCs) and subsidy on agriculture tube wells and general sales tax is estimated at Rs 13 billion, informed the sources. 

&#8220;There is an appetite of non-interest bearing paper in the primary market. Islamic banks have low advance deposit ratio and roughly Rs 50 billion liquidity is available in non-interest banking system,&#8221; said Invest Cap head of research Khurram Schehzad. 

The government borrowing is shifting from the State Bank to commercial banks. Under the International Monetary Fund (IMF) programme, the government is bound to keep State Bank borrowing nil at the end of the quarter. Finance Ministry is working hard to end power sector circular debt by the end of this year. Its official said that the IMF also identified the inter-corporate circular debt in the energy sector as a major issue of Pakistan. The fund has expressed its concern over the failure of the government to resolve it once and for all despite the fact the government has generated twice the amount required to retire the circular debt by marketing its TFCs to the banks. In fiscal year 2008-09, Rs 42 billion was raised from domestic rupee denominated sovereign Sukuk.


----------



## Omar1984

*Foreign interest in blue chips pushes KSE 17 points up​*
KARACHI: The Karachi stock market witnessed a firm trading session on Tuesday on account of foreign interest in oil and gas and fertilizer sectors.

The Karachi Stock Exchange (KSE) 100-share index gained 17.31 points or 0.17 percent to close at 10,073.77 points as compared to the previous session&#8217;s 10,056.46 points. The KSE 30-share index closed at 10,306.65 points with a loss of 26.80 points. The KMI 30 closed at 15,326.23 points with a gain 33.72 points. 

Analysts said the market opened in the green zone and this trend remained prevalent throughout the trading session well supported by anticipation of expectations of early resolution of circular debt issue and positive expectations for the release of International Monetary Fund&#8217;s 5th tranche next month. 

The market turnover went down by 1.00 percent and traded 147.09 million shares as compared with the previous session&#8217;s 148.58 million shares. The overall market capitalisation was up by 0.10 percent and traded Rs 2.861 trillion as against Rs 2.858 trillion. Out of total 412 companies, 154 closed in the positive zone, 235 in negative and 23 remained unchanged. 

&#8220;The market opened on a positive note led by improved sentiments,&#8221; said TopLine Sec analyst Farhan Seth. &#8220;But investors preferred to book profits later in the session amid news regarding the Supreme Courts&#8217; strong stance over the implementation of the National Reconciliation Ordinance verdict and other political issues.&#8221; 

However, continued interest in OGDC supported the broader index to close in the green. &#8220;Other major factors that supported the market included rise in international oil prices and increase in DAP sales data released by NDFC,&#8221; said Shahzad Chamdia Sec senior analyst Ahsan Mehanti. The KSE 100-share index opened in the green zone with a gain of 2.60 points and at the end of the day closed at 10,073.76 points with a rise of 17.30 points. 

&#8220;While the efforts for sustainability were on, absence of triggers forced the local bourse to erode values,&#8221; said Aziz Fida Husein and Co analyst Husnein Asghar Ali. &#8220;Positive trend was witnessed early due to low volume price jack-up in blue chips, while second-tier stocks continued to face off-loading.&#8221; 

Maple Leaf Cement was the volume leader with 13.70 million shares as it closed at Rs 5.02 after opening at Rs 4.74, gaining 28 paisas. staff report


----------



## Omar1984

*Expanding network infrastructure, service quality: Telenor Group transfers $80m to Pakistan​*

KARACHI: Telenor Group, a Norwegian telecom giant, transferred $80 million to its subsidiary in Pakistan, which will be utilised for expansion of network infrastructure and improvement of service quality in the upcoming months, official sources told Daily Times on Tuesday.

This is one of the biggest investments made by any foreign-based telecommunication company in the country so far in the current fiscal year.

Foreign direct investment (FDI) in the telecom sector has declined to $205.4 million in July to February as compared with the landed investment recorded at $736.9 million in the same period of last financial year, showing a 72 percent decline.

Telenor official said that the investment will be spent on various existing and upcoming projects related to network infrastructure expansion and quality of service enhancement.

Number of cell sites, franchises and other infrastructure related projects will be accomplished in order to improve quality of services and network expansion throughout the country, they added.

As per Pakistan Telecommunication Authority (PTA), Telenor has established more than 6,088 sites including solar energy-run sites by the end of July 2009.

The Norwegian-based cellular phone company is ranked as second having largest subscribers&#8217; base with 23.7 percent share in the overall users&#8217; market. By the end of January, the total number of pre-paid and post-paid subscribers stood at 22.64 million. The company has a network of 250-plus franchises and 150,000 retailers through out the country.

It acquired majority shares of Tameer Microfinance Bank in November 2008 for $12.5 million. Subsequently launched &#8216;mobile accounts&#8217; recently, a new service as part of easypaisa mobile banking services. Easypaisa was initially launched in October 2009 with bill payment and later added money transfer to its portfolio.

According to the official statistics, more than 600,000 bill payments and more than 175,000 money transfer transactions have been recorded in the last four months.

In 2009, EBITDA (Earnings before interest, taxes, depreciation and amortisation) margins grew to an all-time high of 28.4 percent. It was recorded at 1,055 million Norwegian krone (NOK) in the closing year as compared with 709 million NOK in 2008. It is estimated that Telenor Pakistan would have contributed Rs 20 billion in various forms of direct and indirect taxes to Pakistan&#8217;s economy.

Telenor Group is the country&#8217;s single largest European investor, with investments in excess of $2 billion, beginning with the acquisition of a GSM licence in 2004 for $291 million.


----------



## ameer219

*Index hits 19-month high
*



RECORDER REPORT


KARACHI (April 02 2010): Bullish trend continued at the Karachi share market on Thursday on the back of strong interest of foreign investors and the KSE-100 index gained another 68.34 points to close at 19-month high level of 10,246.77 points. The improving political situation coupled with positive report of international rating agencies encouraged the investors to take fresh positions aggressively.

After strong positive opening, the index breached 10,300 level after 20 months to hit 10,3314.61 points intra-day high level. Trading volumes however declined to 170.343 million shares as compared to 199.308 million shares traded on Wednesday. The overall market capitalisation increased by Rs 17 billion to Rs 2.907 trillion. Out of total 433 active scrips, 256 closed in positive, 157 in negative while the value of 20 scrips remained unchanged.

TRG Pakistan was the volume leader with 28.935 million shares gaining Re 0.49 to close at Rs 3.83. Jahangir Siddiqui Co inched up by Re 0.18 to close at Rs 21.85 with 10.418 million shares. Azgard Nine increased by Re 0.12 to close at Rs 14.06 with 7.722 million shares.

In the banking sector, NBP and NIB Bank surged by Rs 1.58 and Re 0.12 to close at Rs 69.41 and Rs 4.24 with 7.564 million shares and 4.790 million shares respectively, however Silkbank lost Re 0.08 to close at Rs 3.07 with 8.602 million shares. Lafarge Pakistan gained Re 0.28 to close at Rs 4.88 with 6.365 million shares.

Fauji Fertiliser Bin Qasim and Fauji Fertiliser Co (FFC) increased by Re 0.57 and Rs 3.04 to close at Rs 32.40 and Rs 112.73 with 6.315 million shares and 4.432 million shares, respectively. Lotte Pakistan gained Re 0.13 to close at Rs 11.06 with 5.020 million shares.

Unilever Pakistan and Nestle Pakistan were the highest gainers with Rs 173.42 and Rs 59.96 to close at Rs 3641.94 and Rs 1339.96, respectively while Bata Pak and Dreamworld were the worst losers with Rs 30.90 and Rs 28.00 to close at Rs 684.10 and Rs 560.00, respectively. Ahmed Rauf, an analyst at JS Global Capital said that the local bourse witnessed a rally for the second straight day closing 68 points up, at 10,247 level, a 19-month high.

The investors' confidence strengthened following a major breakthrough last night with political consensus on the 18th constitutional amendment being reached, massive net foreign inflow of $13.1 million on Wednesday and with Moody's statement come in, declaring there were no major threats to Pakistan's sovereign bond ratings in the short-term. PSO was the major beneficiary, closing 1.6 percent up, due to increasing petroleum prices. The cement sector also witnessed a rally, as APCMA released figures showing an increase in both local and export sales.

Business Recorder [Pakistan's First Financial Daily]


----------



## ameer219

*'Industrial zone for Turkish investors being set up'
*


RECORDER REPORT



LAHORE (April 02 2010): Chief Minister Punjab Shahbaz Sharif has said that government of Punjab is establishing an industrial zone for Turkish investors in Faisalabad Industrial City and it has allocated 225 acres of land free of cost to the Turkish investors. He said that recent wave of terrorism has affected the economic and industrial activity but there is a lot of potential for investment in Punjab.

He was addressing Pak-Turk CEO Forum organised by Punjab Board of Investment and Trade (PBIT) in honour of President of Turkey Abdullah Gul on Thursday. While welcoming Turk trade delegation, the CM stressed upon strong trade ties between the two brotherly countries. He said that Turkey has always helped Pakistan in difficult times especially during the earthquake.

He said that Mayor of Istanbul would help Punjab government for the proper disposal of solid waste of the city. He assured that Punjab government would provide all the facilities to the Turk investors who were interested for investing in different sectors in the province.

Speaking on the occasion, Turk President Abdullah Gul stressed the need for strong co-operation between the two countries especially in the field of infrastructure building and energy sector. He said that there is a need for strong efforts from both sides for increasing trade between the countries and business community will play an important role in this regard. He said that the trade volume between the two countries would be increased with starting of cargo-service between the two countries.

Speaking on the occasion, Consultant to Chief Minister Punjab on Economic Affairs and Vice-Chairman and CEO of PBIT Pir Saad Ahsanuddin has said that this is the event that would include reiteration of the trade target of 2 billion dollars by 2012 and outline milestones needed to achieve this goal.

He apprised that the forum would market investment projects in Punjab including an integrated cold chain, coal-based power plants and KSL Motorway. The forum will also highlight the benefits of formulating a trade access plan for Punjab into EU markets through Turkey as Turkey would receive the advantage of Punjab's low cost of production and labour. Ahsanuddin said PBIT has been established to give a boost to Foreign Direct Investment (FDI).

Earlier, an agreement was signed regarding the establishment of Punjab-Turk Zone. The seminar was attended by President Lahore Chamber of Commerce and Industry, Interior Minister Rehman Malik, Provincial Minister Rana Sanaullah, and members of the provincial and national assembly.

Copyright Business Recorder, 2010Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## ajpirzada

*Pakistan stocks extend gains to end at 19-month high*
Fri Apr 2, 2010 5:42pm IST Email | Print | Share | Single Page [-] Text [+]
By Faisal Aziz

KARACHI, April 2 (Reuters) - Pakistani stocks extended gains Friday to close at a new 19-month high as investors were encouraged by the relative political stability and strong foreign portfolio inflows in recent weeks, dealers said.

The Karachi Stock Exchange's benchmark 100-share index .KSE ended 1.66 percent, or 169.74 points, higher at 10,416.51.

It was the highest closing for the KSE-100 since Aug. 20, 2008, when it ended at 10,525.99. The index touched an intraday high of 10,429.99 points.

Volume rose to 205.11 million shares from 170.19 million traded on Thursday.

"There are many reasons to feel encouraged," said Asif Jan Mohamamd, head of sales at brokerage Taurus Securities.

"The market is happy that the constitutional package has finally been tabled, and not to mention the strong foreign inflows, which have definitely boosted sentiment."

The government introduced a constitutional bill in parliament Friday, transferring many of President Asif Ali Zardari's powers to the prime minister and possibly ending months of political wrangling. [ID:nSGE631030}

The set of reforms, known as the "18th Amendment Bill", is expected to be passed by the two-chambered parliament, effectively turning Zardari into a titular head of state.

Dealers said growing political stability, as well as confidence among foreign investors, helped local investors overcome unease about a potentially destabilising stand-off between the government and the judiciary.

Net foreign portfolio inflows stood at $113 million in March -- the second highest monthly inflow ever, after inflows of $127 million in September last year.

In the currency market, the rupee ended lower at 84.40/84.45 to the dollar compared with the previous day's close of 84.23/28.

Dealers said dollar buying for import payments, especially for oil, pushed up the demand for the U.S. currency.

"As anticipated, there has been a rise in dollar demand over the last few days and this is likely to continue in coming days as well, keeping the rupee under pressure," said a dealer at a foreign bank.

The rupee fell to an all-time closing low last month but gained sharply to hit a four-month high last week.

In the money market, overnight rates ended flat at 9.50 percent. Dealers said there were outflows of 62 billion rupees on Saturday, when the central bank is likely to conduct a reverse-repo to inject funds into the market.

"The amount to be injected would probably be lower than the outflows, as there is still some liquidity scattered in the market," said a brokerage house dealer. (Editing by Chris Allbritton)

(For more Reuters coverage of Afghanistan and Pakistan, see: here)

&#169; Thomson Reuters 2010 All rights reserved

Pakistan stocks extend gains to end at 19-month high | Reuters


----------



## Hyde

good news Pirzada saab.......... but it is not just a case in Pakistan only.....peoples are putting trust in the stock exchanges once again....

DOW jones is at its 52 weeks high........ nearly 11000 points
S&P 500 is also at 52 weeks high

Currencies are gaining strenght once again.......... Oil is at 85 dollars today

The world economy is recovering once again


----------



## ajpirzada

ya true. but its not very common for ppl to take interest in pakistani market at least in last two years. so be happy.... lol
we have a lot of risk factor involved. if we could somehow control that, which means political stability and no bomb blasts, we will attract lot of investment. taking steps to increase return should be our medium term strategy. 
you must be aware of the risk return model, arent u?


----------



## Hyde

ajpirzada said:


> ya true. but its not very common for ppl to take interest in pakistani market at least in last two years. so be happy.... lol
> we have a lot of risk factor involved. if we could somehow control that, which means political stability and no bomb blasts, we will attract lot of investment. taking steps to increase return should be our medium term strategy.
> you must be aware of the risk return model, arent u?



of course it is my job Pirzada Saab........ i trade currencies, stock exchanges, gold, silver, oil, shares in companies on daily basis so i understand the risk factor and i usually say trading in KSE is a lot of fun because it is highly volatile and if you are experienced enough you will earn a lot more investing in KSE than investing in DOW Jones. That is because DOW is a stable stock exchange despite the major changes in american economy it only moves a little but here in Pakistan if one bomb blast takes place and peoples come on streets whole market crashes.

I don't trade in KSE but i believe it would a great investment


----------



## ajpirzada

Zaki said:


> of course it is my job Pirzada Saab........ i trade currencies, stock exchanges, gold, silver, oil, shares in companies on daily basis so i understand the risk factor and i usually say trading in KSE is a lot of fun because it is highly volatile and if you are experienced enough you will earn a lot more investing in KSE than investing in DOW Jones. That is because DOW is a stable stock exchange despite the major changes in american economy it only moves a little but here in Pakistan if one bomb blast takes place and peoples come on streets whole market crashes.
> 
> I don't trade in KSE but i believe it would a great investment



will be interesting but very un predictable bec of KSE being less efficient than Dow. 
on top of that they must have come up with a dividend-bomb model or CAPM minus probability of bomb blast multiplied with a depreciation of 100%

Reactions: Like Like:
2


----------



## Hyde

ajpirzada said:


> will be interesting but very un predictable bec of KSE being less efficient than Dow.
> on top of that they must have come up with a dividend-bomb model or CAPM minus probability of bomb blast multiplied with a depreciation of 100%


----------



## ameer219

*Boosting tax revenues and power supply expansion: World Bank pledges continued help*


ISLAMABAD (April 03 2010): Isabel Guerrero, World Bank Vice President for South Asia, on Friday pledged continued support for Pakistan''s efforts to boost tax revenues and to expand the supply of power in the country.

According to a press release of the WB issued on Friday, during a two-day visit to Pakistan, Guerrero called on President Asif Ali Zardari and Prime Minister Yousaf Raza Gillani and key officials, including the government''s economic team, led by the Finance Adviser to the Prime Minister, Dr Hafiz Sheikh, to discuss the economy and vital reforms in the power sector and tax administration.

Ms Guerrero commented on the substantial economic progress since her last visit to Pakistan in 2008. The government has implemented tough economic measures to stabilise the economy. The country''s fiscal deficit has declined and foreign exchange reserves have rebounded.

Continued implementation of these measures will help steer the country back onto a high growth path for significant poverty reduction. Ms Guerrero discussed with the government officials the importance of increasing tax revenues. The country''s tax-to-GDP ratio, at about 10 percent, is among the lowest in the world, leaving the country vulnerable to shocks and dependent on external aid.

"To become independent of foreign aid, Pakistan needs to strengthen its own revenue generation," Guerrero said. "Resources to finance more schools, health centres, roads and other critical infrastructure remain severely limited. The Bank is supporting implementation of the Government''s plan to introduce a national broad-based VAT on goods and services which we have seen bring in substantial additional revenues in countries world-wide."

Guerrero also discussed measures needed to restore the financial health of the power sector and reduce load shedding in the country. In her meetings with officials including Shakil Durrani, Chairman of the Water and Power Development Authority, she discussed the need for actions to increase efficiency and reduce losses.

"The Government has taken bold actions over the last 24 months to improve the financial health of the power sector. Reducing the cost of subsidies in the budget is important. Now the focus is on reducing costs and freeing up idle generating capacity - for example by allocating more gas to the power sector," Guerrero said on the conclusion of her visit.

"The World Bank will provide strong support to expand power supply in the coming years and, at the same time, work with the sector to continue to improve its financial health and quality of services." Guerrero also discussed with the Government the Bank''s upcoming Country Partnership Strategy (CPS) for Pakistan.

Spelling out the priorities in the strategy, Guerrero said the Bank would support removal of constraints to economic growth and the Government''s capacity to better manage shocks to the macro economy and households. Specific support will also be in areas of economic management, education, conflict risk management and mitigation, and social protection, the press release added.-PR

Copyright Business Recorder, 2010

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## ameer219

*Index crosses 10,400 points mark*



RECORDER REPORT





KARACHI (April 03 2010): The Karachi share market witnessed bullish session on Friday on foreign investors' support, and the KSE-100 index breached 10,400 points level. The index closed at 10,416.52 points level with a gain of 169.75 points. Trading improved significantly and the volume at ready counter increased to 205.629 million shares as compared to 170.343 million shares traded on Thursday.

Market capitalisation increased by Rs 44 billion to Rs 2.951 trillion. Of 370 active scrips, 220 closed in positive and 136 in negative, while the value of 14 scrips remained unchanged. TRG Pakistan was the volume leader with 26.234 million shares and gained Re 0.38 to close at Rs 4.21. SilkBank, Bank of Khyber and NBP increased by Re 0.18, Re 0.47 and Rs 1.20 to close at Rs 3.25, Rs 5.00 and Rs 70.61 with 17.369 million shares, 10.504 million shares and 5.637 million shares respectively. Lotte Pakistan inched up by Re 0.11 to close at Rs 11.17 with 11.065 million shares.

POL surged by Rs 9.49 to close at Rs 244.87 with 9.245 million shares. Engro Corp increased by Rs 9.99 to close at Rs 209.90 with 8.610 million shares. First Capital Sec gained Re 1.00 to close at Rs 9.33 with 7.298 million shares. PTCL increased by Re 0.44 to close at Rs 21.31 with 6.981 million shares. DG Khan Cement lost Re 0.20 to close at Rs 31.62 with 6.386 million shares.

Unilever Pakistan and Rafhan Maize were the highest gainers and increased by Rs 93.31 and Rs 20.27 to close at Rs 3735.25 and Rs 1340.00 respectively, while Fazal Textile and Atlas Battery were the worst losers and declined by Rs 19.83 and Rs 6.64 to close at Rs 380.17 and Rs 213.09 respectively.

Ahsan Mehanti at Shehzad Chamdia Securities said that intense buying was witnessed at the share market as international oil prices crossed $85 inviting foreign interest in Pakistan oil & gas sector, followed by blue chip fertiliser and banking scrips. The political consensus on Pakistan constitutional reforms, expectation of early release of IMF tranche for Pakistan, and support and record rise in global equity markets played the catalyst role in positive activity in the market.

Copyright Business Recorder, 2010Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## ameer219

*Rental power plant to be inaugurated at Naudero on Sunday: all arrangements finalised*


ISLAMABAD (April 03 2010): The Ministry of Water and Power has said that all arrangements have been made to inaugurate first rental power plant of 51mw at Naudero, District Larkana, on April 4. The plant is technically designed to operate on gas turbine generating units with 92 percent power availability factor.

The plant has been assured 12mmcfd gas for five years through Pepco's Generation Company-II, and an SSGC gas transmission pipeline has been linked to the said plant, besides laying of 132 kv transmission line to connect the power so generated to national grid, said a press release here on Friday.

The Economic Co-ordination Committee (ECC) in its meeting held on August 21, 2009 had approved the said project, followed by tariff approval from Nepra within the prescribed period. The Walter Power International's 51 mw rental power plant 'Naudero -One' has been completed at a cost of $91.65 million.

The project shall not only give a boost to Papco's power generation output, but shall also be a major source of economic development of the area, particularly in industrial and commercial sector. The plant soon would be upgraded by addition of another 50 mw, which would help improve power shortage in sizeable areas of Sindh province.

It is understood that energisation of a total of 101 mw of power soon shall lead to attaining another milestone towards the electric power sufficiency of the country-a goal which is on the high priority list of the present government. The plant is to be run on natural gas, and its construction has been completed over a record period of six months after completion of contract obligations by Pepco.

The plant is not only capable to supplying power to over 250 medium sized industries but would also ensure creation of over 100 jobs for technical, skilled and unskilled personnel of the area. What could satisfy the people of the area is that it would meet 2500 agri tubewells' power need which are designed to irrigate 75,000 acres of land that produces 1.2 million tons of wheat and rice besides ensuring stable power to over 1000 average sized villages in the area, the press release said.

It certainly would strengthen an industrial estate based power availability from this plant which not only would create additional jobs but would also help kick-start economic activity in the area that is presently underdeveloped and needs the government's special attention along with an attractive incentive package.

It is hoped that all rental power plants in the country, duly approved by the Cabinet and endorsed by Asian Development Bank audit report would finally achieve the same level of efficiency as IPPs, and the government may, as a policy, consider converting them into IPPs if they would meet the efficiency, affordability and availability criteria.

As per approved policy, these rental power plants would be injecting additional power to Pepco system and the national grid through overseas investment, while the government would continue to look forward to new investors to come and invest in the power sector.

Business Recorder [Pakistan's First Financial Daily]

Copyright Associated Press of Pakistan, 2010

Reactions: Like Like:
1


----------



## ameer219

*Textile export: $9.7 billion forex earned during 2008-09, National Assembly told
*


RECORDER REPORT
ISLAMABAD (April 02 2010): Minister for Textile Industry Rana Muhammad Farooq Saeed Khan on Thursday informed the National Assembly that major importers of Pakistani textile products are USA, European Union countries, UK, United Arab Emirates (UAE) and other Middle Eastern countries.

In a written reply to the house, he said $9.7 billion foreign exchange was earned during 2008-09; $10.8 billion 2007-08 and $11.1 billion during 2006-07 through export of textile products. Under Rules of Business, trade is the domain of the Ministry of Commerce including exports.

Notwithstanding, the Ministry of Textile Industry has taken initiatives for enhancing exports of textile products. It included provision of duty drawback @3 percent on garments and payment of the outstanding claims of R&D support. Exports of cotton yarn have been restricted at 35 million kgs per month for all types of yarn for the next 4 months ie March 1 to June 30, 2010.

Other initiatives included continuation of LTEF Scheme by State Bank of Pakistan and initiation, continuation of Stitching Machine Operator Training (SMOT) Scheme and establishment of Garment Cities in Karachi, Lahore & Faisalabad and Textile City at Karachi. The government is picking cost of social security and EOBI expenses of the female workers employed by industry, he added.

Copyright Business Recorder, 2010
Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
1


----------



## ameer219

* Reform bill good omen for country: Gilani*
By Ahmad Hassan
Saturday, 03 Apr, 2010 





ISLAMABAD: Prime Minister Yousuf Raza Gilani has said that he is aware of the fact that restoration of the 1973 Constitution through the proposed 18th amendment will increase manifold the responsibilities and powers of his office and nations expectations.

In his monthly radio address to the nation on Friday, he said: Our aim is not to increase our authority and command. We consider the government as a means to serve people.

The prime minister promised to fully implement the recommendations of the pay and pension commission.

He said the agreement reached by political parties on constitutional reforms was a historic event and a good omen for the country.

He said restoration of the 1973 Constitution would be of immense benefit to the common man.

Greater provincial autonomy will change the environment and peoples problems will be effectively solved.

I assure you that our government will fulfill its duties and responsibilities of serving the masses with more dedication and sincerity, he said.

The prime minister felicitated the people of the NWFP on the proposed renaming of the province which would meet their longstanding demand.

Democracy, reconciliation and harmony are the bases on which we can build the edifice of the nations great future, he said.

Mr Gilani said the government realised that problems like inflation and loadshedding were adversely affecting peoples lives.

He, however, said that food prices in Pakistan were much less than in other countries in the region.

*He said inflation had dropped from 25 to 13 per cent, budgetary deficit had also decreased and foreign exchange reserves had increased to $15 billion.

Our government is not only trying to run power generation units optimally, but also encouraging installation of small generators by the private sector.
*
He said: We will continue to respect the decisions of the judiciary to maintain harmony among state institutions and meet the obligations of justice.

The prime minister said the US had assured Pakistan of providing relief in economy and energy.

Our government will not hide anything about the talks and parliament will be taken into confidence.

I again want to reiterate that we are a peaceful nation and desire resolution of all disputes, including Kashmir, peacefully.

Prime Minister Gilani said Turkeys President Abdullah Gul had offered help to resolve the energy crisis and several memorandums of understanding had been signed during his visit to Pakistan.

DAWN.COM | Front Page | Reform bill good omen for country: Gilani


----------



## sparklingway

*KSE 100-share index at 19-month high on foreign buying*
Sunday, April 04, 2010
By Salman Siddiqui

KARACHI: Massive foreign buying, worth $36 million, pushed the Karachi Stock Exchange 100-share index to a 19-month high of 10,400 point-level with oil and gas and chemical sectors outperforming all the other sectors, dealers said on Saturday.

There were many factors, which kept the interest of foreign investors alive in Pakistani stocks, said Rabia Tariq, an analyst at JS Global. Among the leading ones, the presentation of historic 18th amendment package before the national assembly headed the list of positive developments this week.

KSE 100-share index rose 278.89 points, or 2.75 per cent, on weekly basis to close at 10,416.52 points. KSE 30-index surged 238.06 points, or 2.28 per cent, to end at 10,680.98 points this week.

The oil, gas and chemical sectors outperformed the market with OGDC, POL and PPL gained 4.6 per cent, 4.2 per cent and 2.3 per cent, respectively on the back of rising international oil prices to a 18-month high of $85 a barrel, she added.

Moreover, keen foreign interest was witnessed in Engro which rose by 8.9 per cent this week. Mixed activity was observed in the cement sector following the implementation of inland freight subsidy which was confined to companies in the north, she added.

The market began the week with dull sentiments. The status quo remained under the latest monetary policy announced on last Saturday (Mar 27), and news about delay in release of the IMF fifth tranche, together convinced investors to book profits on Monday.

KASB Securities reported that some respite emanated from Moodys statement that Pakistans macro pressures were adequately reflected in ratings and therefore any improvement could pave the way for an upgrade in ratings. In addition, Pakistans Eurobond yields also slipped below eight per cent which combined with recent currency appreciation hinted that international perception of Pakistan was apparently improving. These factors convinced foreigners to injected 30-week record high of $35.66 million this week. Ahsan Mehanti, CEO at Shahzad Chamdia Securities, said the expectation of early resolution of circular debt, following the ministry of finance announced to float Rs100 billion Sukuk(bonds), played a catalyst role in the positive activity at KSE.

The overall market capitalisation soared by Rs72 billion to Rs2,951 billion. On the contrary, local investors, both the corporate and individuals, stayed busy in profit sell-off. Among the notables, the individual investors withdrew $14.18 million this week; mutual funds $11.65 million; and banks/DFIs disinvested $8.33 million, according to the NCCPL.

Some political tension over judiciarys stance to implement its decision in letter and spirit over the annulled National Reconciliation Ordinance (NRO) is said to be the one major reason.

Going forward, foreign flows would remain the key driving factor for the market to maintain its recent enthusiasm, but any slowdown in the same could force the market to shift its focus to thorny issues such as political noise (NRO case), IMF concerns on economy and uncertainty on implementation of Capital Gains Tax (CGT) on shares transaction from Jul 01, added KASB Securities.

TRG Pakistan, Pakistan Telephone Cables, Gharibwal Cement, Unilever Pakistan and Nestle Pakistan were major gainers while Azgard Nine, Lafarge Pakistan, Jahangir Siddiqui & Co, PNSC and Bank of Punjab were major losers at KSE this week.

Reactions: Like Like:
1


----------



## ameer219

*Pak-Ukraine Trade Centre inaugurated *


Business Recorder [Pakistan's First Financial Daily]


MULTAN (April 04 2010): Ukrainian Ambassador, Ihar Pasco inaugurated the Pakistan-Ukraine Trade Center in Chen Tower Multan here on Saturday. Chairman Pakistan Crop Protection Association (PCPA) Haji Atta-ur-Rehman was also present along with him on this occasion. While addressing the ceremony, Ihar Pasco said that southern Punjab is a very rich region especially in the agricultural sector and there are enormous opportunities available in this sector.

Ukrainian Ambassador specially quoted the import of cotton and mango from Multan and said that Pakistani mango and cotton are the best in the world and with the establishment of this Trade Center especially these products would be focused. He said that opportunities are also available in the textile and value added products sector that would strengthen the business ties of both the countries.

Chairman PCPA, Haji Atta-ur-Rehman on this occasion thanked the Ukrainian Ambassador to establish Pakistan-Ukraine Trade Centre and ensured the ambassador that this step would increase the trade opportunities with Ukraine. He said that with the co-operation of Ukraine our region would further prosper in the field of agriculture. He said that with the exchange of fertilisers, high breed seeds and pesticides from Ukraine, per acre production of our lands would increase.

Haji Atta-ur-Rehman said that PCPA is working day and night to take measures to increase the per acre production so that the government's target of wheat could be achieved. He demanded of the government to increase the number of procurement centres of wheat in the province because harvesting season would start from April 20.

Copyright Business Recorder, 2010

Reactions: Like Like:
1


----------



## ameer219

*USAID to finance: TDAP to open IT centres for women entrepreneurs *

KARACHI (April 04 2010): The Trade Development Authority of Pakistan (TDAP), under the funding of the United States Agency for International Development (USAID) is going to open information technology (IT) centres for women entrepreneurs in the country.

To bring the women into the mainstream activities, the Authority is planning to impart IT-related knowledge and development of IT business skills among women entrepreneurs of any business type and size in Pakistan, sources told Business Recorder on Saturday.

The important project, under which the women across the country would be provided IT-related knowledge/training, would be funded by the USAID, they said. TDAP in collaboration with USAID would start the project through temporarily hiring pre-furnished office space on rent, while purchasing a range of required office equipment such as computers, projectors, backup generators, presentation boards, internet connections, software, etc, soon after the budget of the project would be approved, sources said.

They said that in order to avoid initial lengthy process of screening and selection, human resource recruitment firms could be hired which would do the necessary hiring in all regions of Pakistan on defined criteria. Existing trained human resource of TDAP could also be utilised. To ensure success of the project, which is of crucial business nature, qualified and experienced workforce would be hired in respective regions, sources said.

According to sources, USAID would finance premises rent, hiring of faculty, purchase of office electronic equipment's, furniture and stationery and other expenses of the training project. TDAP, they said, would conduct research of existing women entrepreneurs while hiring premises to accommodate the requisite number of students in all regions of Pakistan. It has published a directory of women entrepreneurs with special training courses on export procedures and handholding programs for women exporters.

Besides, they said, the Authority, in conjunction with Women Chambers would assess needs to engage or hire professionals and equipment's to impart requisite training. The professionals would develop training plans, training strategy, advise on duration of training, gather and report training feedback to form a region-wise consolidated report and measure training outcomes. Affiliation with a good IT institute or board or PASHA would also be developed to certificated/diplomas at the end of the course.

The training, they said, is aimed to enable women entrepreneurs to use IT in business activities, learn/manage and use computer-based tools, get knowledge of internet, browsing on internet and access websites of different businesses, create and manage a website for their business and efficiently use computer communication systems. As mostly business today communicate electronically, TDAP, with the help of USAID, is speedily working on the project which, according to sources, would not only help developing IT skills in women entrepreneurs but also boost trade and commerce in Pakistan.

Copyright Business Recorder, 2010

Business Recorder [Pakistan's First Financial Daily]


----------



## Hyde

Its a very good news indeed. I would love to see collaboration between Pakistan and Ukraine. We need to enhance our ties with Central Asian countries to become a major economy in future


----------



## ameer219

Zaki said:


> Its a very good news indeed. I would love to see collaboration between Pakistan and Ukraine. We need to enhance our ties with Central Asian countries to become a major economy in future



Yes, its a good news indeed,insyallah, we will be able to sign collobaration and probably MoU with other EU states, and then we might be able to request for access to their market.


----------



## Hyde

ameer219 said:


> Yes, its a good news indeed,insyallah, we will be able to sign collobaration and probably MoU with other EU states, and then we might be able to request for access to their market.



we need FTA's with all European countries (for supporting in WoT) and Central Asian Countries (to enhance our ties and use our ports and increase imports and exports in this region) *required *

Reactions: Like Like:
2


----------



## ameer219

*Pakistan all set to join TPPA

*
ISLAMABAD: Pakistan is set to join the Trans-Pacific Economic Partnership Agreement (TPPA) that is being predicted as a free trade area and trading block of 21 major trading players of the world, official sources informed Daily Times on Saturday.

New Zealand, Chile, Singapore and Brunei Dar Es Salaam are the existing members of the TPPA and United States, Australia, Peru and Vietnam have already announced their intention to join the TPPA, the sources added. After a long interval, the federal cabinet has authorised the Ministry of Commerce to start negotiations for Pakistans joining of TPPA that is expected to cover 50 percent of the world trade, official sources informed.

According to the information obtained from the Ministry of Commerce, the TPPA is a Regional Trade Agreement (RTA) signed by New Zealand, Chile, Singapore and Brunei Dar Es Salaam. The TPPA includes provisions for liberalisation of trade in goods and services and also contains trade facilitation measures such as rules of origin, trade remedies, sanitary and phyto-sanitary measures, technical barriers to trade and protection of intellectual property rights. One of the objectives of the agreement is to create a trading block that would be seen as a model in the Asia Pacific region.

The four original signatory members of the TPPA intend to expand the membership of the RTA. The agreement is open for accession on terms to be agreed among the parties by any Asia Pacific Economic Cooperation (APEC) economy or other state. The United States, Australia, Peru, and Vietnam have already announced their intention to join the TPPA. The first round of negotiations to expand the membership of TPPA was scheduled to be hosted by Australia in January 2010. The Australian trade minister while meeting with Pakistans high commissioner in Canberra informed that TPPA was a step towards a Free Trade Area (FTA) of Asia Pacific and had suggested Pakistan to join the agreement.

Pakistan has been striving for bilateral FTA with United States, New Zealand, Australia and Vietnam. Pakistan as a part of its Look East Policy is also working on a possibility of a FTA with ASEAN on a 10 + 1 basis. However, the responses from partner countries have not been very encouraging. The TPPA, therefore, provides Pakistan an opportunity to pursue market access initiative with Pakistans important trading partners and leverage it as a platform to integrate its economy in the Asia Pacific Region.

The proposed expansion of TPPA would create a market that would rival the ASEAN, NAFTA and EC free trade areas. staff report


Daily Times - Leading News Resource of Pakistan

Reactions: Like Like:
1


----------



## ameer219

*WEEKLY REVIEW: Foreign buying, consensus on 18th Amend keep KSE in the green*


KARACHI: The Karachi stock market witnessed a bullish trading week on account of consensus among all political parties of the country achieved on the 18th Amendment and registration of foreign buying at 30-week record high of $35.7 million.

The Karachi stock market (KSE) 100-share index was up by 289.49 points or 2.7 percent to close at 10,416.52 points as compared to 10,127.03 points of the previous week.

Analysts said that other major factors that supported the market included intense buying as international oil prices crossed $85 inviting foreign interest in oil and gas sector followed by blue chip fertilizer and bank scrips.

The turnover reached 205.62 million shares as against 211.33 million shares of the previous week, reflecting a decline of 2.70 percent.

Foreign buying registered a 30-week record high of $35.7 million, with Engro, OGDC and POL being the star performers, said JS Sec analyst Rabia Tariq. Status quo maintained under the latest monetary policy during the weekend failed to dampen the markets sentiment.

The immediate reaction of investors to the news of national consensus on the proposed constitutional reforms has positively impacted the markets; Pakistans CDS lowered by 87 basis points, the 100-share index rose by 2.3 percent on the last two trading days and the rupee exchange showed stability against the dollar, she said.

Status quo maintained under the latest monetary policy announced during the weekend did not dampen the market sentiments. The oil and gas and chemical sector outperformed the market with OGDC, POL and PPL gaining 4.6 percent, 4.2 percent and 2.3 percent, respectively on the back of rising international oil prices.

Mixed activity was observed in the cement sector, post the implementation of the inland freight subsidy.

Foreigners registered record buying of $35.7 million during this week, which was the highest in the preceding 30 weeks. On the contrary, individuals were net sellers of $14.1 million

Intense buying was witnessed as international oil prices crossed $85 a barrel inviting foreign interest in oil and gas sector followed by blue chips- fertilizer and bank scrips, said Shahzad Chamdia Sec analyst Ahsan Mehanti. Ratings maintained by Moodys at B3 with stable outlook on Pakistan, resolution of political conflicts in 18th Amendment of Pakistan Constitution and expectations of early resolution of circular debt issue as Ministry of Finance plans Rs 100 billion Sukuk issue and higher DAP offtake data from NDFC played a catalyst role in the positive activity.

Daily Times - Leading News Resource of Pakistan


----------



## ramu

World Bank urges more economic reforms

ISLAMABAD: Pakistan's economy has made progress through tough reforms but still needs to boost tax revenues and increase power supplies to improve finances, the World Bank said on Friday.

During two days of meetings with officials, including Abdul Hafeez Sheikh, the new Finance Adviser to the prime minister, World Bank Vice President for South Asia Isabel Guerrero noted substantial economic progress since her last visit in 2008.

She noted Pakistan's reserves had rebounded, the World Bank said in a statement. But Guerrero said further action was needed.

*&#8220;To become independent of foreign aid, Pakistan needs to strengthen its own revenue generation,&#8221; she said in a statement.*

The government has pledged to keep the fiscal deficit at 4.9 per cent of gross domestic product (GDP) in the 2009/10 (July-June) fiscal year under its agreement with the International Monetary Fund, but it has said it could rise to 5.3 per cent.

GDP growth this fiscal year is forecast at 3.3 per cent but could go up to 3.4 percent, compared with 2 per cent last year, officials say.

But revenue collection is a chronic problem which successive governments have failed to come to grips with.

Pakistan's tax-to-GDP ratio of 9.2 per cent is one of the lowest in the world. The government aims to raise it to at least 15 per cent.

Shaikh, a former privatisation minister, will be put to the test as Pakistan's weak government attempts to energise a struggling economy battered by a Taliban militant insurgency and starved of foreign investment.

He must also try to strike a balance between policy demands by the IMF, which provides critical financial support for Pakistan, and the government's desire not to alienate voters who could be hurt by those policies.

&#8220;The World Bank will provide strong support to expand power supply in the coming years, and at the same time, work with the sector to continue to improve its financial health and quality of services,' said Guerrero.

Pakistan clinched an emergency loan package of $7.6 billion with the IMF in November 2008 to avert a balance of payments crisis and the Fund is likely to approve disbursement of the delayed fifth tranche next month.&#8212;Reuters

DAWN.COM | Business | World Bank urges more economic reforms


----------



## Omar1984

*New projects push cement sales up​*
KARACHI: The start of construction work on new small apartments projects and large scale renovation of houses have pushed up the local demand and sales of cement. 

Around 35-40 new projects of small apartments have been launched in Karachi since Ramazan last year. Many people have started renovation of their houses as they think that it is the right time as steel prices are comparatively low this year along with fall in cement prices. 

According to figures provided by All Pakistan Cement Manufactures Association (APCMA), total local sales in July-Feb 2009-10 surged to 14.596 million tons from 12.855 million tons in the same period of last fiscal. 

The rate of cement bag in Northern Region ranges between Rs240-250 per 50 kg bag, while in Southern Region the price, hovers between Rs260-300 per bag, the association official said. 

Local sales of cement in 2007-08 were 22 million tons as compared to 20.5 million tons in 2008-09, while the industry is expecting sale of 21.5 million tons at the end of current fiscal year. 

However, the official said that the government is pocketing Rs68 per 50 kg bag in terms of taxes and duties (Rs35 as excise duty, Rs30 as sales tax and Rs3 as special excise duty). 

The average freight charges now come to Rs40 per bag. 

The coal price is now Rs$110 per ton, which translates into Rs85 per 50 kg bag for plants producing cement in Northern Areas and Rs75 per bag for plants in Southern region. 

Four months back the coal rate was $75 per ton. The price of paper bag used in packing comes to Rs15.50 per bag. 

He said that these figures reveal the cost of production of cement is high and as a result, some five to six units have already closed their production in the last 3-4 months. 

The APCMA official said the exports were also likely to range between 11-12 million tons in 2009-10. He said due to economic slowdown, cement exporters are fetching $48-52 per ton on exports of bagged cement as compared to $60-70 per ton last year. 

On loose cement, exporters are getting average price of $40 per ton as against $52 last year. The rate of cement in world markets has come down after financial crunch. 

Besides, exports of cement went up in quantity to 7.328 million tons in July-Feb 2009-10 as compared to 6.686 million tons in the corresponding period of last year. 

The official said the cement exports fetched around $800-850 million last fiscal but this fiscal, it may hover between $600-650 million. 

Meanwhile, APCMA Chairman Brig (rtd) Asmatullah Khan Niazi said freight proposals have been approved by the government on associations demand. 

However, the proposals submitted to the commerce ministry suggested that freight subsidy should be given to all units irrespective of the fact whether they are located within 100 km of the port or not. 

He said the subsidy was proposed to be given at a percentage of the cost of freight from the manufacturing unit to the port. The government suggestion to exclude factories within a 100 km of the port is, therefore, not in line with the proposals submitted by APCMA.


----------



## Omar1984

*Foreign equity inflow at $113m in March​*





Analysts attributed the huge inflows to renewed interest of foreign fund managers in frontier and emerging markets. The aggregate foreign portfolio investment of $2.1bn amounts to 23pc of the free float. - File photo 


KARACHI: Including the net foreign purchase of shares in the phenomenal sum of $13.07 million on the last trading day of the month, the Pakistan capital market attracted $113 million during March. 

Figures released by the State Bank of Pakistan showed that up until 20th of the month, aggregate foreign holding in the equity markets stood in the sum of $2.1 billion. 

March marked the 10th successive month of a bull run by foreign funds. Share purchases (net) by offshore investors since June 2009 were recorded at $419 million. During the period, benchmark KSE-100 Index gained 38 per cent (33pc in US$). 

Analysts at brokerage Topline Securities point to an interesting phenomenon: &#8220;In one month every year, overseas investors pour more than $100 million in the local markets. In 2008, month of February saw net overseas buying of $105 million; Sept 2009 witnessed net buying of $127 million and in the current year, March had kept up the tradition of attracting foreign portfolio investment of over $100 million. 

Analysts attributed the huge inflows to renewed interest of foreign fund managers in frontier and emerging markets. The share of overseas investment in total volumes at the local bourses increased to 15 per cent in March, from an average of 9 per cent in 2009. 

Topline Securities&#8217; analysts point out that contrary to the previous trend, KSE index climbed by just 6 per cent during the outgoing month, regardless of its scaling the peak of 10,000 points after 18 months. The market had rallied by 8 per cent the last time it had posted $100 million plus net buying in Sept 2009. 

Earlier still in Feb 2008 shares had gained 7 per cent. &#8220;The difference was attributable to aggressive profit taking during March by local investors amid liquidity crunch,&#8221; say the analysts. 

The aggregate foreign portfolio investment of $2.1 billion amounts to 6 per cent of the aggregate market capitalisation. But in relation to free float it amounts to 23 per cent. 

The offshore investors&#8217; peak holding was recorded at $5.1 billion (27 per cent of free float) in April 2008, and lowest was seen at $1 billion (17 per cent of free float) in March 2009.

Reactions: Like Like:
1


----------



## ameer219

*'There will be no need of foreign aid after enforcing VAT' *
RECORDER REPORT 

MULTAN (April 05 2010): Member, Policy (Direct Tax), of Federal Board of Revenue, Israr Rauf, has said that there will be no need of foreign aid after imposition of value-added tax (VAT), and Pakistan would be 137th country where this tax would be introduced with approval of parliament.

Addressing a meeting of Multan Chamber of Commerce & Industry (MCCI) and PCGA, chaired by Asrar Ahmed Awan, MCCI president, he said that FBR had fixed the target of 3 million tax declarations for the year 2010-11 while 2.2 million declarations were filed in 2009-10. He said he was optimistic that FBR would achieve its revenue targets fixed for the current financial year.

He said that FBR would directly collect income tax from the ginners and textile millers, and the dispute between FBR and ginners, textile millers on the issue of cut in income tax would be resolved on top priority basis.

He said that value-added tax would be realised at the same rate that of general sales tax, and powers of tax collectors to grant any exemption had been abolished. However, the Parliament would be sovereign to grant any exemption to any sector and it would be realised at the uniform rate of 15 percent.

He said that all chambers, trade organisations, trade bodies, associations were being taken into confidence on this issue. He said that only 0.6 million, out of 3.1 million commercial consumers of electricity, were filing declarations. He said that 0.1 million property owners were inducted in the tax net under enforcement plan, while 10,000 owners of luxury vehicles had been asked to file their declarations.

"We have succeeded in taking 2,50,000 fresh tax payers in the net, while a similar number of people would be inducted in the list of tax payers by June 30, 2010. After introduction of VAT, refunds would be made directly from the bank. He claimed that economic condition had improved during last three months. He said that tax payers of Rs 5 million turnover would have to pay tax on Rs 7.5 million turnover from next financial year. "However, we are collecting taxes on the basis of respect and mutual understanding and we have no intention to create a state of harassment through arrests and confiscation of properties."

He admitted that Senate had asked to defer VAT for one year and reducing its rate from 15 percent to 12.5 percent.

He assured that issues like value-added tax, withholding tax, workers welfare fund and refunds raised by PCGA would be resolved on top priority basis and amount of refunds would be transferred to the bank account of the applicant. He said that Pakistan's rate of tax against GDP was less than other countries which is only 8.8 percent. It would be increased to 29 percent after levy of VAT.

He said that Pakistan would get debt of $ 11.3 billion from IMF under standby agreement. "We have so far received $6 billion till March 2010 while another tranche of $1.2 billion would be received in April. PCGA chairman Muhammad Akram said that VAT would directly hit the farmers who were playing a key role in strengthening the national economy while ginners entire investment would be dumped in the tax.

Business Recorder [Pakistan's First Financial Daily]

Reactions: Like Like:
3


----------



## Omar1984

*100&#37;: A new women brand launched​*
RAWALPINDI - Senior Vice President Rawalpindi Chamber of Commerce and Industry (RCCI), Syed Ali Raza Saeed Shah, has said that women entrepreneurs can play a vital role in boosting the national economy while RCCI always facilitates the women entrepreneurs of the region and provides them a platform to prove their talent.

He stated this while talking to the members of a newly introduced fashion brand during an expo at the Chamber here on Friday.

Ali Raza said that Pakistani women had enormous talent and if a better environment would be provided to the women entrepreneurs, they could bring revolutionary changes in country&#8217;s prevailing economic situation.

He said that RCCI constantly assisted and welcomed the new comer with new ideas. He praised the ideas carried out by the three young members of the &#8220;100%&#8221; in the field of fashion. While briefing about the brand, Sabahat Nawaz, the member of the 100% said that the prime goal is to introduce new ideas in the field to attract the local as well as the foreign customers.

She said that women could play a proactive role in the current economic scenario. She demanded of the government to take solid measures to promote the businesswomen.

She thanked RCCI to provide them a platform to exhibit their products. It is worth to be mentioned that the three entreneurs (Sabahat, Zara and Fatima) had done their graduation from the National College of Arts, Lahore and completed their Masters from a UK university.


----------



## Omar1984

*Dollar loses ground vs rupee​*
KARACHI: The dollar shed up strength versus the rupee in the interbank market, dealers said on Monday.

The dollar initiated the day&#8217;s trading at Rs 84.41 for buying after losing strength closed at Rs 84.22 for buying and at Rs 84.27 for selling. Therefore, the rupee incurred a gain of 19 paisas. The euro in line with dollar also remained low, as the euro started the day&#8217;s trading at Rs 114.38 for buying and after losing strength closed at Rs 113.48 for buying and at Rs 113.68 for selling. 

The pound sterling depreciated against the rupee, as the pound started the day&#8217;s trading at Rs 128.78 for buying, after losing strength closed at Rs 128.29 for buying and at Rs 128.49 for selling.

Open market: The dollar appreciated versus the rupee in the interbank market, dealers said on Monday.

The dollar started the day&#8217;s trading at Rs 84.40 for buying after gaining 05 paisas was changing hands at Rs 84.45 for buying and at Rs 84.60 for selling. The euro recorded losses versus the rupee, as it was down by 35 paisas. It initiated the day&#8217;s trading at Rs 113.35 for buying after losing strength closed at Rs 113.00 for buying and at Rs 113.50 for selling. 

The pound sterling remained low against the rupee, as it started the day&#8217;s trading at Rs 127.80 for buying depreciated by 05 paisas and was changing hands at Rs 127.75 for buying and at Rs 128.25 for selling. staff report


----------



## Omar1984

*Revival of agri sector crucial for economic growth&#8217;​*
ISLAMABAD: Banks provide only 4 percent credit to agriculture sectors while Agriculture contributes around 25 percent to the economy, said Shafqat Kakakhel, member of Board of Governors of SDPI adding the economic renaissance in Pakistan could only come from agriculture sector development. 

Kakakhel said despite a lot of euphorbia regarding Kyoto Protocol, the US did not approve the treaty, as it did not ensure compulsory cuts. He said the House of Representatives adopted a law on climate change but the Senate could not do so under Obama administration. 

He said Copenhagen summit on climate change failed last year for not addressing the issues. It spoke of commitment of countries to provide a package of aid without agreeing from where the money would come. He said Copenhagen Accord has no legal effect despite expression of support to the accord. 

He said a meeting would be held later this week regarding how to start negotiations. &#8220;Environmentalists are expecting a legally binding agreement in Mexico stint later this year but there are a lot of negative factors, like the bill Senate is considering has only 25 percent chance of adoption and for seeking this &#8220;acceptance,&#8221; the language of the bill was drastically changed&#8221; he added. He referred to a report that Himalayan glacier may disappear by 2035, which would provide critics of climate change with another source of criticism. Thus we are now having anti-euphoria on climate, he said. staff report


----------



## Omar1984

*Educational system vital for economic growth​*
ISLAMABAD: There is a need for establishing a strong partnership between the academia and the industry, which would help students better understand the applicability of theoretical studies in the real world. President Islamabad Chamber of Commerce & Industry (ICCI) Zahid Maqbool said the country was blessed with plenty of talented youths and universities could play a major role in transforming this huge critical mass into a highly valuable resource for the country by equipping it with latest knowledge and technical education. staff report


----------



## Omar1984

*LSE witnesses bullish trend​*
LAHORE: The Lahore stock market on Monday witnessed bullish trend as the LSE-25 Index gained 10.42 points to close at 3287.49 points as compared to 3277.07 points on Friday the last working day. Total turnover also increased to 14.905 million shares on the day as compared to 9.851 million shares on Friday showing a difference of 5.054 million shares. Of 115 active scrips traded on the day 40 moved up, 30 gone down while 45 others remained unchanged. Service Industries Limited emerged as major gainer of a the day with an increase of Rs 14.85 per share to close at Rs 311.90. Treet Corporation Limited remained major loser of the day by decreasing Rs 3.89 in its share value to close at Rs 73.87 per share. Lotte Pakistan PTA Ltd appeared as volume leader of the day with 5.344 million shares, followed by Arif Habib Sec Ltd with 1.483 million shares and Bank Al-Falah Ltd with 1.432 million shares. app


----------



## Omar1984

*Support of foreign inflows puts KSE 100-share 31 points higher​*
KARACHI: Bullish sentiments prevailed at the Karachi stock market Monday on support of foreign inflows and rising trend in international oil prices, traders said

Analysts said the benchmark KSE-100 index opened in the positive zone remained prevalent throughout the rest of the trading session during which higher volumes were traded reflecting growing confidence among investors. The Karachi Stock Exchange KSE-100 share index gained 31.32 points or 0.30 percent to close at 10,447.84 points compared to previous session&#8217;s 10,416.52 points. 

The KSE-30 share index closed at 10,707.31 points with a gain of 26.33 points or 0.25 percent. The KMI-30 index closed at 15,867.50 points with a gain 6.97 points or 0.04 percent. The KSE-100 all share index closed at 7352.69 gaining 17.21 points or 0.23 percent. The market turnover went up by 8.21 percent and traded 222.51 million shares as compared to previous session&#8217;s 205.62 million shares. The overall market capitalisation was up by 0.16 percent and traded Rs 2.956 trillion compared to 2.951 trillion of previous session. Out of total 444 companies, 179 closed in the positive zone, 244 in negative while 21 remained unchanged. 

Ahsan Mehanti, senior analyst at Shahzad Chamdia Sec said positive activity was witnessed on positive sentiment ahead of March quarter result announcement. Other major factors included higher banking sector spreads, expectation of early release of 5th IMF tranche of $1.2 billion and continuing foreign interest in Pakistan oil and gas sector. Banking and fertilizer scrips played a catalyst role in positive activity at KSE despite intraday correction on Peshawar blast announcement. 

Trading activity was better as compared to the last trading session as the ready market volume stands at 222.521 million as compared to last trading session 205.629 million. Future market volume however stood at 7.410 million shares as compared to 9.847 million shares last trading session. Husnein Asghar Ali, analyst at Aziz Fida Husein and Co said low price stocks along with securities companies kept the turnover ticking thus keeping the day-traders active in the market.

Across the board gains attained through the activity of local corporate however failed to sustain, due to absence of follow-up support, thereby allowing stagnation to re-surface, likely re-promulgation of CCOP ordinance kept the main board cement stocks under pressure, while renewed buying by the local participants and respective groups invited buying interest in the fertilizer stocks on dips. The banking and fertilizer frontline stocks continued to invite snap rallies, mainly initiated due to fresh interest and swaps, thus keeping the day traders glued to the screens despite range bound activity in the latter half. 

Lotte Pakistan was the volume leader in share market with 65.79 million shares as it closed at Rs 12.12 after opening at Rs 11.17 gaining paisas 95. Azgard Nine traded 13.83 million shares as it closed at Rs 12.88 after opening at Rs 13.66 shedding paisas 78. TRG Pakistan Ltd traded 12.69 million shares as it closed at Rs 4.22 after opening at Rs 4.21 gaining 01 paisa. Arif Habib Sec traded 10.63 million shares as it closed at Rs 46.39 after opening at Rs 44.21 gaining paisas 18. staff report


----------



## Omar1984

*US top buyer of Pakistani products​*
KARACHI: Despite the high duty structure on Pakistan exports to United States of America (USA), it is still the top buyer of Pakistani products with almost 19 percent share in the total exports of Pakistan.

Recently concluded Pak-USA strategic dialogue also shed light on the bilateral economic ties besides the other issues between the two countries and the major thrust on the economic front remained on the greater market access of Pakistani exportable products to the huge and lucrative USA market.

Pakistani business community though appreciated the comprehensive strategic dialogue between the two countries, however they are skeptical about the greater market access to the American market, which if granted would boost the countries exports manifold.

Pakistan, being the front ally state in the war on terror by sacrificing heavily in terms of human lives and economic losses, deservers the market access to boost the exports, a representative of the countrys powerful trade association All Pakistan Textile Mills Association (APTMA) Yasin Siddik told Daily Times.

At a time when businessmen are suspicious about the intentions of USA to give greater market access to Pakistani exportable goods, USA is still the largest importer of Pakistani goods and the first quarters figures of current fiscal suggested that goods exported to the USA market were almost 19 percent of the total export volume of the country.

Having a large population with strong buying power, USA market always remained a lucrative one for Pakistani goods and consumed major part of products originating from Pakistan, Yasin pointed out.

The zero-rated export to USA is being enjoyed by various countries like Bangladesh, Jordan, Israel etc. Pakistan should be treated at par with these countries for contributing immensely against the American war against terrorism, an exporter of value-added goods remarked.

About Bilateral Investment Treaty (BIT) with USA, the business community is a bit skeptical about the signing of this treaty and its utility in the current scenario.

BIT means the investment of USA investors in Pakistan and vice versa, which at the moment seems something impossible in the present security situation, they said and suggested that for the time being, Pakistan should focus only on greater market access as part of its trade diplomacy.

About the governments efforts to diversify the market, they said that it is very hard to grab a new market in the present scenario when they are finding it difficult to even keep hold on traditional markets. The country has to rely on its traditional markets like USA and European countries in foreseeable future because of the present situation, they added.


----------



## Omar1984

*WB lauds Pakistan&#8217;s initiatives to reform economy​*
ISLAMABAD, Apr 1 (APP): The World Bank&#8217;s Vice President for the South Asia Region, Ms Isabel M. Guerrero, here on Thursday appreciated Pakistani government&#8217;s initiatives to reform the national economy. 

Ms Isabel was leading a World Bank delegation that called on Advisor to Prime Minister on Finance, Dr. Abdul Hafeez Shaikh, according to press release issued by the Ministry of Finance. 

She said that the World Bank attaches great importance to its linkages with Pakistan and assured the government of the WB&#8217;s continued cooperation in its economic development. 

Earlier, the delegation was briefed about the state of Pakistan&#8217;s economy, challenges faced by it and the government&#8217;s economic initiatives. 

Speaking on the occasion, Hafeez Shaikh appreciated the positive role of the WB in economic development of Pakistan. 

He said that Pakistan and WB have excellent relations and expressed the hope that the bank would continue assisting Pakistan in the national economic development process in future.


----------



## Omar1984

*Pak exporters must avail opportunities of access to EU : president SCCI​*
SIALKOT,April 5 (APP)- President Sialkot Chamber of Commerce and Industry (SCCI) Muhammad Ishaq Butt has appreciated the endeavour of the Turkish President to promote bilateral trade between Pakistan and Turkey.Talking to APP here,he said that Turkish President while addressing the business delegation in Lahore expressed his eagerness to enhance economic ties with Pakistan as both countries have great potential for greater economic cooperation. He also appreciated that the Turkish President assured help in overcoming the power crisis in Pakistan. 

He hoped that Pak-Turkish CEOs meetings would lead to direct investment and joint ventures between the two countries for taking bilateral trade much beyond the current volume of US 700 million. 

SCCI President urged Pakistani exporters and investors to avail the opportunity of access to European Union (EU) markets from Turkey by exporting products and establishing businesses in Turkey. 

Ishaq Butt also stressed upon the Turkish investors that they should avail investment friendly opportunities in Pakistan by enhancing investment and entering joint ventures in Pakistan. 

He stressed that the two countries should assign pivotal role to their entrepreneurs for utilising &#8220;untapped trade and economic potential&#8221; between the two friendly countries. 

He said that commercial sections of Embassies of Pakistan and Turkey should play their instrumental role for enhancing cooperation between private sectors and boosting bilateral trade.


----------



## Omar1984

*Finance Ministry issues instructions for fiscal discipline​*
ISLAMABAD, Apr 4 (APP): With a view to improve financial discipline and streamline the management of public accounts, the Ministry of Finance has decided to restrict the validity of cheques up to three months or 30th June whichever is earlier.As per the Ministry&#8217;s decision, if the currency of the cheque expired, owing to its not being presented at the treasury or bank within the specified period, it may be received back by the drawer who should then destroy it and issue a new cheque in lieu of it provided that the validity of the fresh cheque shall expire on 30th June. 

According to a press release issued here, necessary amendments in the relevant Federal Treasury Rules have been affected and notified by the Finance Division vide Notification No. F.5 (3) Exp.III/2009, dated 31st March.

Accordingly, the Ministry of Finance has asked all ministries, divisions and departments to ensure observance of financial discipline by strictly adhering to the following instructions:-

i. That the budgetary allocations placed at their disposal are expended uniformly as far as possible during the financial year. They should further ensure that all validly accrued liabilities are promptly cleared and are not postponed towards the end of the financial year.

ii. All releases of funds for development/non-development expenditure be completed by Ministries/Divisions by 15th May. Releases of inevitable nature, if any after the said date, would only be made by the Finance Division, after ensuring that the funds are likely to be expended well before the close of the financial year.

iii. There should be no re-appropriation/supplementary grant after 15th May to ensure timely processing of claim by the Ministries/Division/Departments.

iv. All Ministries/Divisions/Departments should submit and draw their claims from A.G. Office for all validly accrued liabilities against the Government on or before 10th June of that financial year. 

v.In case of requirement of any additional information by the Accounts Officer (Accountant General&#8217;s Office/District Accounts Office/Agency Accounts Office), Account Office shall return the un-passed bill urgently and the concerned departments shall respond promptly and resubmit the bill/claim not later than 15th June.

vi.In order to adhere to the aforesaid schedule, all the concerned authorities shall ensure the issuance of sanctions, completion of codal formalities and procurement of stores well in time so that the claims can be presented for pre-audit to the respective Accounts Office timely.

vii. All PLAs/Assignment Accounts holders should make necessary arrangements as detailed above to ensure encashment of their cheque well in time. All cheques drawn against PLAs /Assignment Accounts shall be cleared up to 30th June.

viii. The PIFRA shall generate regular reports for information of all Principal Accounting Officers, apprising them of the latest funding positions in respective heads. This would facilitate PAOs to take timely action for making good of the shortfall.


----------



## Omar1984

*Excise Minister reviews tax collection targets​*
KARACHI, April 2 (APP): The Provincial Excise and Taxation department surpassed the tax collection target of Rs 10,558.200 million and recovered 10,597.147 million during the period from July 1, 2009 t0 February 28, 2010. 

This was stated by Sindh Minister for Excise and Taxation, Mukesh Kumar Chawla whie chairing a review meeting at his office. 

He noted that the target achieved was higher by Rs 38.947 million and the ratio of tax recoveries during the period remained 100 percent. 

In a briefing on the occasion, the Minister was informed that the department recovered Rs 1780.709 million as against the given target of Rs 1564.887 million on account of Motor Vehicle Tax, Rs 1505.883 million as against Rs 1533.333 million as entertainment tax, Rs 6914.635 million as against the target of Rs 7000 million (-) on account of infrastructure tax, Rs 155.239 as against Rs 120 million as cotton fee, Rs 158.856 million against Rs 173.333 (-) million as professional tax and Rs 81.825 million as against Rs 166.667 million (-) as Hotel tax. 

The Minister expressed concern over low recoveries in entertainment, infrastructure, professional and hotel taxes as against the given targets and directed the concerned officers to improve their performance. 

He said that no dereliction in lower recoveries of taxes will be tolerated. 

Mukesh Kumar pointed out that for the fiscal 2009-10, the target of tax collection has been set at Rs 15837.300 million and still 3 months remain to the close of current fiscal. 

He directed that not only the taxes, where lower collections have been shown, be recovered but the collection should be 30 percent higher.


----------



## Omar1984

*Telecom company invests $80 million in Pakistan​*
ISLAMABAD, Apr 1 (APP): A telecom company has further invested USD 80 million into its offshoot company working in Pakistan. The investment is one of the largest contribution made by any telecommunications company in Pakistan in the current fiscal year. 

The investment from the Group is going to be utilized for various ongoing and upcoming projects like network expansion, improved customer services, and more aggressive roll-out of financial services. 

Chief Strategy Officer and Vice President Corporate Affairs, Telenor Aamir Pakistan, Ibrahim while talking to this news agency said this continuous stream of investment from Telenor reinforces the company&#8217;s long-term commitment to Pakistan and shows confidence in future growth in the telecom sector. 

&#8220;The investment will contribute to the development of our infrastructure and expansion of our services,&#8221; he added. 

Telenor Pakistan is the second largest mobile operator in Pakistan with a subscriber base of 22.6 million and market share of 23.7&#37; in the telecom sector. 

The company has an extensive distribution network with over 250 Franchises and 175,000 retailers. In Nov 2008, Telenor Pakistan acquired Tameer Microfinance Bank and launched easypaisa - mobile banking services in October 2009. 

Since its inception in Pakistan in 2004, Telenor Pakistan has created 2,500 direct and over 25,000- indirect jobs and was recently rated Pakistan&#8217;s &#8220;Most preferred Employer&#8221;. Telenor Pakistan has contributed approximately PKR 20 billion in various forms of direct and indirect taxes in 2009.


----------



## Hyde

*Gadani&#8217;s ship-breaking industry revives, but sustainability doubtful ​*
Sunday, April 04, 2010 

KARACHI: After a gap of almost 10 years, Pakistan&#8217;s ship-breaking industry seems to be back on track. More than 30 ships, including oil tankers, were lined up at the once picturesque Gadani beach where they are being dismantled bolt by bolt, rivet by rivet, every piece of metal, destined for the furnace.

It was in 2009 when the revival of ship-breaking industry began after a gap of almost a decade. The once empty ship-breaking yards again started to bustle with activity as more than 70 vessels were brought to Gadani from far-flung corners of the world that year.

&#8220;The revival of work here provided employment to thousands of labourers,&#8221; said Abdul Sattar, vice-chairman of the Pakistan Ship-breaking Association.

However, the momentum of work had dropped by almost 50 per cent with the start of 2010 as cost of ships rose sharply in the international market against the backdrop of a weak rupee, dealers said.

Sattar said that currently 35 ships were being dismantled. Around 6,000 workers were engaged here right now which was almost 50 per cent lower from the highs of up to 12,000 only a few months back, he said.

Around 700,000 to 800,000 ton steel requirement of local re-rolling and re-melting mills was being fulfilled by the ship-breaking industry, Sattar told The News.

More than 95 per cent of the scrap is recycled and reused. Even there are buyers for washbasins, toilets, furniture and other fixtures of an old ship. Antique collectors also rummage through these ships, trying to get hold of those items, which can be sold in the up-scale market, from furniture to cutlery and wall clocks to lanterns.

&#8220;Even before a ship touches the shore, all its items are sold in advance,&#8221; said Sattar. &#8220;You see these sofas, chairs, they have already been sold,&#8221; he said pointing his hand towards the furniture placed on the deck of an oil tanker Premvati, which once carried the Indian flag.

The labourers, involved in ship-breaking, enter the ship only after it is cleared out of all its fixtures and furniture.

Clad mostly in soiled and blackened shalwar kamiz, the workers perform even the dangerous jobs, from cutting iron to lifting weights, without any safety gear.

None of them had a helmet or a pair of gloves. Some using high-powered welding cutters were performing their task without goggles.

Most of these workers are being paid daily wages ranging from five to fifteen hundred rupees a day, enough to keep most of them happy.

Mohammad Ilyas, president of the Gadani Ship-Breaking Labour Union, said that in these tough times, these were fair wages.

&#8220;These workers are not insured, but in case of an accident, owners give them a decent compensation,&#8221; he said. &#8220;In case of death, family of a worker is paid three hundred thousand rupees by the owner and another three hundred thousand by the government.&#8221;

In case of an injury, all the treatment charges are covered, he said. &#8220;A victim continues to draw his wages under the entire duration of treatment.&#8221;

Not long ago, Pakistan was on top in the ship-breaking industry, but now it has been overtaken by Bangladesh and India. The strong currencies of India and Bangladesh give them a huge edge against Pakistan where the rupee has declined by more than 35 per cent against the dollar during the last two years.

With the cost of new and old ships rising, there are fears among the people associated with the local ship-breaking industry that Gadani could again lose its present hustle-bustle.

One re-rolling mill owner, who asked not to be named, said that there was already a shortage of ship plates and billets in the market.

In 2009, about 700,000 ton steel requirement of the local re-rolling industry was fulfilled by the ship-breaking industry, he said. &#8220;If this source dries up, it will be a huge blow to the re-rolling and re-melting industry.&#8221;

However, the presence of ship-breaking industry is seen as a big environmental threat by the locals, who say that the spill of oil and other chemicals remain a huge threat for the coastal marine life and spoiling its once clean sandy beach.


----------



## Omar1984

*Foreign investment, oil prices push KSE index​*
KARACHI: Foreign portfolio investment and local buying helped the Karachi Stock Exchange continue its bullish rally.

The KSE-100 index breached the level of 10,500 points on Tuesday.

Buying activity could be seen across the board at the local equity market as foreign participation continued in the banking, energy and power, and fertilizer sectors.

Rising international oil prices have also been instrumental in pushing the benchmark index forward. 

However, analysts expect increased profit-making in the next few sessions. &#8212;DawnNews


----------



## Hang em High

In the middle of this century, work done by M.F.M Osborne showed that the logarithms of common-stock prices, and the value of money, can be regarded as an ensemble of decisions in statistical equilibrium, and that this ensemble of logarithms of prices, each varying with time, has a close analogy with the ensemble of coordinates of a large number of molecules.*[ which means that Osborne showed that fluctuations in stock market and the movement of molecules are similar....i.e. both are random and unpredictable]*. Using a probability distribution function and the prices of the same random stock choice at random times, he was able to derive a steady state distribution function, which is precisely the probability distribution for a particle in Brownian motion.*[In a really advanced and crazy type of statistics he proved that the stock exchange move randomly]*. A similar distribution holds for the value of money, measured approximately by stock market indices. Sufficient, but not necessary conditions to derive this distribution quantitatively are given by the conditions of trading. *[Similar effect was seen in the raltionship of stock market index and value of money]*. 

Well in short you cannot predict stock market with accuracy, its a random walk, it follows Brownian motion pattern, its unpredictable. Just look at yesterdays news there was an attack on US consulate and the stock market went up.... that denies all economic logic.

Source: http://www.doc.ic.ac.uk/~nd/surprise_95/journal/vol1/skh1/article1.html


----------



## ameer219

*Lint export hits 0.9m bales in July-March 2010*

* Quality lint fetches highest price in international market

By Razi Syed

KARACHI: The export of raw cotton increased 1349 percent during July-March 2010 and also fetched the highest-ever price in the international market due to quality, Trade Development Authority of Pakistan (TDAP) spokesman said Tuesday.

The country exported around 899,290 cotton bales till March 31, 2010 to India, Bangladesh, Indonesia, Vietnam and Central Asia, he added. 

The country exported around 62,030 bales during the same period last year, which shows a robust increase of Pakistans lint besides great demand in the international market, Karachi Cotton Association (KCA) exporter Shakeel Ahmad said.

Pakistans lint fetched more than $1,595 per tonnes in the international market due to its fine quality, strength, uniformity, maturity and fineness, Ahmad said.

Pakistan export price closes at 87.32 cents per pound, leading China at 99.32 cents per pound followed by New York Cotton at 82.25 cents per pound and India with closing at 85 cents per pound in international market.

Cotton would continue to play a dynamic role in the economy of Pakistan in the years to come, he added.

Pakistan has a potential to increase cotton production to over 20.0 million bales and to increase exports of cotton and cotton-based products to fetch over $15.0 billion annually, he said. The target set by Federal Committee on Agriculture (FCA) of 13.6 million bales for Kharif 2010, for which FCA is meeting on April 12 in this regard, solely depends on meeting the basic fundamentals, he maintained.

Irrigation water supply has already been delayed more than one-and-half-month besides Punjab and Sindh are still at loggerheads over the water issue, the KCA member added.

The early sowing has always been successful in achieving quality lint besides higher yields and reducing the chances of damaged crop by monsoon and pest diseases.

Water has not been released in the canal system by now and we are still 50-day late for sowing cottonseed, however, farmers in some parts of cotton growing areas in Punjab have started sowing BT type cotton.

In Sindh there is no sign of sowing cotton during Kharif 2010 season because of less water availability, he said. The continuous decline in the yearly production of cotton from 2003-04 crop season can be attributed to the poor policy and non-professional approach of the financial mangers and agriculture planners at the federal ministries, he asserted. They are responsible for poor supply of seed, insecticides, fertilizer and other inputs to cotton sector besides no one could streamline the timely supply of credit to growers.

Daily Times - Leading News Resource of Pakistan


----------



## ameer219

*Rupee regains strength versus dollar*

KARACHI: The dollar shed strength versus the rupee in the interbank market, dealers said on Tuesday.

The dollar commenced the days trading at Rs 84.22 for buying, depreciated by 29 paisas and closed at Rs 83.93 for buying and Rs 83.98 for selling. 

The euro also remained down versus the rupee, as it initiated the days trading at Rs 113.48 for buying and after losing 93 paisas closed at Rs 112.55 for buying and Rs 112.75 for selling. 

The pound also recorded losses against the rupee, as it started the days trading at Rs 128.29 for buying, lost Rs 1.16 and closed at Rs 127.13 for buying and Rs 127.33 for selling. 

Open market: The dollar depreciated versus the rupee, dealers said. The dollar started the days trading at Rs 84.40 for buying, lost 20 paisas and closed at Rs 84.20 for buying and Rs 84.40 for selling. 

The euro depreciated versus the rupee, as it started the days trading at Rs 113.00 for buying, shed 85 paisas and closed at Rs 112.15 for buying and Rs 112.65 for selling. 

The pound also remained low against the rupee, as it started the days trading at Rs 127.75 for buying and after losing Re 1 closed at Rs 126.75 for buying and Rs 127.25 for selling. staff report

Daily Times - Leading News Resource of Pakistan


----------



## Omar1984

*Wheat procurement​*
Punjab food dept, banks consortium sign Rs18.9bn deal

Wednesday, April 07, 2010
By our correspondent

LAHORE: The Punjab Food Department and a consortium of 16 banks on Tuesday signed a financing arrangement deal worth Rs18.9 billion for the current year&#237;s wheat procurement campaign.

These arrangements are part of Rs54 billion credit facility. The Bank of Punjab will be the lead manager, while other banks include Bank Alfalah Limited, Askari Bank Limited, First Women Bank Limited, Habib Metropolitan Bank Limited, KASB Bank Limited, Faysal Bank Limited, Meezan Bank Limited, Bank Albarka Limited, Dubai Islamic Bank Limited, Bank Islami, Emirates Global Islamic Bank, Dawood Islamic Bank Limited, Soneri Bank Limited and the Bank of Khyber.

Food secretary Irfan Elahi signed the document on behalf of the Punjab Food Department and BoP President Naeemuddin Khan on behalf of the banks consortium.

Elahi said that Rs95 billion will be required to buy four million tons wheat. He expressed the hope that the federal government will extend full support. 

He said the department is ready to start wheat procurement from April 20. "We will have gunny bags available with us by April 15," he said.

To a question, he said, the federal government has agreed to reserve 2.5 million tons of wheat for the province. He expressed the hope that wheat will be exported in the near future, keeping in view the size of the present crop.

BoP President Naeemuddin Khan termed the commodity-related debt a serious issue. "The State Bank of Pakistan (SBP) has expressed reservations on the issue," he said, adding that it is likely to be resolved soon.

The Bank of Punjab will also act as the disbursing agent during the wheat procurement season due to its wide distribution channel of 273 branches across the province.


----------



## Omar1984

*Moody&#8217;s sees huge global potential for Islamic banking industry​*
KARACHI: Islamic banking industry has an immense global potential to grow to $5 trillion from the current $950 billion as both individual depositors and companies have shown willingness to adopt Shariah compliance, an international rating agency said in its report on Tuesday.

&#8220;A combined use of securitisation and derivatives offers considerable scope for reducing the risk exposures of Islamic financial institutions (IFIs) and thus improving their overall creditworthiness,&#8221; said Moody&#8217;s Investors Service in its report.

However, the Islamic finance industry needs to develop its own innovation phase and not imitate conventional derivative instruments to maintain their special status and Shariah-compliant approach, the report said.

Despite the recent gloomy global economic environment, the Islamic finance industry&#8217;s total assets rose to new heights in 2009, rising to $950 billion, it said. 

Moody&#8217;s estimates the potential of Islamic banking industry at around $5 trillion, as it continues to expand globally.

&#8220;In this context, IFIs are continuing to deliver Shariah-compliant returns whilst, at the same time, focusing on efficiently mitigating the associated risks through a new risk management approach, including the use of derivatives,&#8221; says Anouar Hassoune, Moody&#8217;s vice president, who authored this report.

&#8220;If employed with care, derivatives can enhance efficiency in IFIs through risk mitigation, thereby making them more competitive as well as appealing to customers. However, their application in Islamic finance is highly controversial for reasons of speculation and uncertainty, two practices forbidden under Shariah,&#8221; explains Hassoune. 

The varying scholarly opinions in the world of Islamic jurisprudence on the legitimacy of derivatives has so far translated into a total ban on these instruments in some countries and actual implementation &#8212; albeit on a limited scale &#8212; in others, he said.

&#8220;IFIs aim to utilise derivative instruments to hedge against the risk and to improve risk monitoring practices. 

However, they are keen to do so in a Shari&#8217;ah-compliant manner, rather than imitating conventional derivative instruments in order to avoid losing their special status as Shariah-compliant banks, which makes them very attractive to a large population of Muslims,&#8221; Hassoune added. &#8220;For this reason, a new innovation phase in the industry is critical.&#8221;


----------



## Omar1984

*Exporters condemn freight forwarders&#8217; malpractices​*
KARACHI: Representative bodies of various export oriented industries have alleged that freight forwarders do not issue them the requisite legal documents, which hinders payments.

&#8220;Foreign banks have withheld over $500 million worth of export proceeds for want of authentic bill of ladings,&#8221; the leaders of value-added textiles, furniture, leather, and rice exporters at a press conference held at the Pakistan Hosiery Manufacturers and Exporters Association (PHMA).

&#8220;The freight brokers are violating rules of the State Bank of Pakistan and it is taking no action against them,&#8221; was the unanimous complaint of Jawed Bilwani chairman Pakistan Apparel Forum, Mohsin Ayub Mirza, chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Bilal Mulla, former chairman PRGMEA, Rafiq Suleman, vice chairman Rice Exporters Association of Pakistan (REAP) and other leading exporters present at the press conference.

The exporters said that according to circular No.6 of 2006 of the SBP, the Bill of Lading (BL) is to be issued by the shipping company, in which, exporter is shipper while local bank is consignee and actual importer comes in the column of notify party. However, said the exporters, freight agents were showing themselves as shippers, thus payments of the exporters were held.

Freight forwarders were issuing them another BL which was just a confirmation that cargo was received and banks did not accept it, said Bilwani. 

More than US$500 million of the exporters were held by the foreign banks, as they did not have genuine record to show their ownership.

Exporters said 51 cases were registered with the FIA, but there was interference from the Interior Ministry, so no action was taken against the culprits. However, nine out of 32 shipping companies have started issuing real BL to the exporters, under which they have received the payments. 

Bilwani said they have complained several times with the SBP on that issue, but no action was taken.

They said unless the SBP strictly implements the rules the exporters would continue to suffer colossal losses. Jawed Bilwani said that several small exporting industries were shut off and payments of whole exporting chain were stopped.


----------



## Omar1984

*Tea smuggling under Afghan Transit Trade hitting local traders​*

Pakistan loses Rs8bn a year in taxes, duties due to smuggled tea

Wednesday, April 07, 2010
By Shahid Shah

KARACHI: More than 84,000 tons of tea is smuggled into Pakistan annually under the controversial Afghan Transit Trade, inflicting huge losses not only to traders, but depriving the government of around Rs8.0 billion in taxes and duties, Pakistan Tea Association (PTA) said on Tuesday. 

The Association, which is demanding the government to slash taxes and duties on the legally-imported tea to discourage smuggling, says that the import of 84,000 tons tea annually by a poor-nation like Afghanistan does not make any sense. 

&#8220;Pakistan with a population of more than 170 million consumes around 170,000 tons tea,&#8221; Hamid Saeed Khawaja, chairman PTA, told The News. &#8220;How can Afghanistan, with a population of barely 25 million, import 84,000 tons of black tea?&#8221;

Black tea, first introduced in colonial India by the British, remains a favourite among Pakistanis, while Afghans mostly enjoy green tea. 

Khawaja said that on an average, every Pakistani consume around one kilogram of tea annually, but official imports in the country stands at around 86,000 tons annually, while the rest smuggled through Afghanistan. 

Pakistan provides import facilities to land-locked Afghanistan under Afghan Transit Trade, which is grossly misused by smugglers, who have flooded Pakistani markets with smuggled goods.

Under this Treaty, Pakistan&#237;s custom duties and other port duties are not applicable on goods for Afghanistan. Kabul charges around 2.0 percent duty on tea import, while Pakistan charges nearly 39 percent tariff and duties. 

Only on account of tea smuggling, Pakistan is deprived of Rs. 8.0 billion in taxes and duties, Khawaja said. &#8220;Even if they (Afghans) consume black tea that would be in negligible quantity,&#8221; he said. 

Importers say that due to massive smuggling, imports have declined. 

The smuggled tea is available at cheaper rates, compared to the legally imported tea, they say. One kg of black tea is available at $3 per kg or Rs255 per kg in the international market. With applied tariff and all other taxes, it cost to around Rs355 per kg in the local market, while smuggled tea cost only Rs277 per kg when it is smuggled back to Pakistan from Afghanistan, they said. 

Mohsin M. Saify, GM tea at Tapal Tea (Pvt.) Ltd, said smuggled tea remains Rs78 cheaper per kg than the officially imported tea. "The difference goes in the pocket of the smuggler and the middleman. We can&#237;t match their margins." 

PTA, which has launched an advertisement campaign against the Afghan Transit Trade, said in one of its advertisement on Tuesday that the government should take measures to protect the legal businesses in Pakistan.

&#8220;Pakistan government is trying to gain market access for Pakistan products abroad. Least it could do is to secure our own market for legitimate businesses operating here,&#8221; PTA said in an advertisement. 

Khawaja, the PTA chairman, said that if government cuts down the duty on tea to 20 percent, it would discourage smuggling. &#8220;There won&#237;t be any loss to government revenue. In fact, it would increase as more tea would be imported legally.&#8221;


----------



## Omar1984

*Businessmen invited to invest in Sudan​*
LAHORE: Pakistani businessmen should come forward and join hands with their Sudanese counterparts to enhance bilateral trade, said Sudanese Ambassador to Pakistan on Tuesday. 

Speaking at the Lahore Chamber of Commerce and Industry (LCCI), Ambassador of Sudan Mohamed Omer Musa said that his country has vast potential in raw cotton and invited the Pakistani businessmen to invest there. Besides agriculture and textile, he said, pharmaceutical, transport, power generation, solar energy and construction also have huge potential for the Pakistani traders. He said that Sudan wants to strengthen trade relations with Pakistan and in this regard the embassy is issuing 150 visas to the Pakistani traders on monthly basis.

LCCI Vice President Faisal Iqbal Sheikh said that lack of contacts between the business communities and the diplomatic missions of the two countries is hampering bilateral trade.

He termed exchange of information through the diplomatic missions, business delegations and one-to-one meetings between the businessmen of the two countries necessary for enhancing the trade.


----------



## Omar1984

*Investors opt to book profits on KSE​*
KARACHI: Investors at the Karachi bourse on Tuesday opted to book profits in the oil and gas sector after the KSE 100 Index briefly breached the 10,500 points mark to close at 10,419.82 points.

Blue-chips Oil and Gas Development Company Limited (OGDC) and Pakistan Petroleum Limited (PPL) remained the main stocks. OGDCL fell by 0.55 per cent to Rs131.13 with a turnover of 3.37 million shares, while PPL lost 1.28 per cent to Rs200.50 with a turnover of 3.09 million shares.

During the last five consecutive sessions, the KSE Index had witnessed an increase of four per cent.

&#8220;Extended profit sell-off by the local financial institutions in the absence of foreigners&#237; pushed down the market,&#8221; said Sajjad Mankani, Associate Director at the BMA Capital Management.

The KSE 100 Index slightly slipped by 28.02 points, or 0.27 per cent to close at 10,419.82 points. The KSE 30 Index fell by 45.43 points, or 0.42 per cent, to end at 10,661.88 points.

Mankani links future of the market with the activities of foreign investors.

Hasnain Asghar Ali, analyst at Aziz Fidahusein, said that the banking sector led the morning rally on the back of unconfirmed foreign flows, but shares movement towards higher levels tempted the locals to book profits.

&#8220;What added to the uncertainty was the ongoing issue of the ability of the local financial groups to settle their financial obligations, especially in the energy sector,&#8221; Asghar said.

Ahsan Mehanti, CEO at Shahzad Chamdia Securities, said that limited foreign interest, investors concern on unavailability of financing (leverage) product in the market and high interest rates played a catalyst role in the negative activity, despite positive sentiments in the banking sector on the back of high banking spreads ahead of the announcement of results for March quarter.

Farhan Seth, analyst at the Topline Securities, said that the KSE-100 Index hit a new intra-day high by surpassing 10,500 levels. Later, local institutions preferred to book profits.

Moreover, Lotte Pakistan remained the volume leader on the optimism over the next results announcement season.

The day's turnover further surged to 244.70 million shares from 222.52 million shares traded on Monday. 

The futures market turnover also jumped to 12 million shares from 7.41 million shares a day earlier.

The overall market capitalisation decreased by Rs8 billion to stand at Rs2,948 billion.

Negative signs continue to dominate the broader market. Out of the total 421 active stocks, 215 registered decline, 184 posted increase, while 22 stocks remained unchanged.

Lotte Pakistan closed with a turnover of 62.93 million shares as it ended at Rs12.77 with a gain of 65 paisas, followed by Azgard Nine at 18.02 million shares, as it closed at Rs12.44 with a loss of 44 paisas.

The National Bank of Pakistan (NBP) gained Rs1.22 to Rs72.16 with the turnover of 17.35 million shares, Fauji Fertilizer Bin Qasim gained 52 paisas to Rs32.60 with 16.32 million shares, and Pakistan Telecommunication Company lost 23 paisas to Rs21.12 with the turnover of 13.43 million shares.


----------



## Omar1984

*UAE firm offers to make 14.8m acres saline land arable​*
ISLAMABAD: A United Arab Emirates (UAE) based company, which provides water treatment solutions for agriculture purposes, on Tuesday offered its services to Pakistan for making its six-million hectors (14.826 million acres) saline land cultivable and overcome the shortage of useable water.

Federal Minister for Food and Agriculture, Nazar M Gondal in a meeting here with the delegates of Magnetic Technologies, Dubai (UAE) said the government was open to introduction of latest agriculture technologies for treatment of brackish underground water in certain areas of the country.

Pakistan&#8217;s water resources are often plagued by salinity and industrial and municipal pollution. Spatial changes of ground water quality indicate saline water intrusion towards fresh groundwater pockets. Temporal changes of groundwater quality also show deterioration of water quality over long periods. 

Reportedly, less than 50 per cent of Indus basin has useable water for agriculture. Out of 143 outfall drains of the Indus basin, the effluent quality of 53 drains is useable, 46 are marginal and 44 hazardous. 

The minister said there was about six million hectors of saline land available in Pakistan. He added that making such a huge amount of land cultivable would definitely bring about a very positive change in the agricultural sector of the country. The minister urged the visiting delegates to provide at least two devices for testing purposes so that the results were observed before entering into any deal with the company.

The company claims that Magnetic Technologies Corner (MTC) of Dubai, UAE is presently operative in more than 25 countries in the world. MTC Magnetic Solutions (MMS) unit is an inline device designed to pass water through a magnetic field of high gauss strength. Magnetic treatment of water elevates the pH that has the effect of reducing corrosion tendencies. 

Farid Uddin, Director International operations told the News that the technology of desalinization of soil water would help boost crop yield and reduce the requirement of inputs especially chemical fertilizers.


----------



## Omar1984

*Hafeez Sheikh seeks update on PEPCO&#8217;s finances​*
LAHORE: The newly appointed Finance Advisor to Prime Minister, Abdul Hafeez Sheikh has directed the Pakistan Electric Power Company to update him on the current financial and operational state of the energy sector in general and the PEPCO in particular, officials said.

PEPCO officials are expected to make a presentation to Hafeez Sheikh in the coming days. Managing Director PEPCO, Tahir Bisharat Cheema, Chief Financial Officer, Malik Razi Masood, Federal Secretary Water and Power, Shahid Rafi and other senior officials are expected to attend the meeting, sources said.

The sources said that MD PEPCO has got these directions in the last week on his tour to Islamabad and he was told to be ready for the presentation to the advisor in coming days.

The sources in Ministry of Water and Power (MoW&P) said that the Sheikh is concerned about the ongoing circular debt situation PEPCO is going through.

According to the sources, the MD PEPCO will apprise Sheikh about the non-payment of Karachi Electric Supply Company KESC to PEPCO over the last one-year.

Reactions: Like Like:
1


----------



## ameer219

*THE RUPEE: dollar sharply down
*

RECORDER REPORT

KARACHI (April 07 2010): All-round gains were seen on currency market on Tuesday on hopes that the political condition to improve after the approval of 18th Amendment Bill, which is due shortly, money experts said. On the interbank market the rupee extended its ground versus the greenback, rising 30 paisa for buying and selling at 83.90 and 83.94, they said.

The rupee may gain more strength after the settlement of energy crisis, which expectedly would help set up more industries in the country, currency experts said. During the second session, the Australian dollar gained after the Reserve Bank of Australia (RBA) raised its cash rate on Tuesday although with many in the market already holding the currency, the hike wasn't enough to propel it up substantially. The euro tumbled as bearish sentiment re-ignited, aided by reports on Greece's fiscal problems, while sterling eased ahead of an expected election announcement in Britain and yen seized back lost ground as short yen positions looked stretched.

OPEN MARKET RATES: The rupee followed the same pattern versus dollar as it gained 25 paisa for buying at 84.20 and rose by 20 paisa for selling at 84.40, dealers said. The rupee also picked up 85 paisa in terms of the euro for buying and selling at Rs 112.15 and Rs 112.65, they added.


----------



## ameer219

*Pakistan's exports to Malaysia surged by 24.6 percent in 2009 *


M RAFIQUE GORAYA

LAHORE (April 07 2010): Pakistan's export to Malaysia in year 2009 registered an unprecedented increase of 24.6 percent compared to the export figures of year 2008. According to Commercial Counsellor in Kuala Lumpur, Wajiullah Kundi, Pakistan's exports to Malaysia reached RM 526.12 million in 2009 compared to RM422.32 million for year 2008, thereby registering an increase of 24.60 percent despite the recession that continued in the first 3 quarters of 2009.

In an email message to Business Recorder here on Tuesday, he said Malaysia made exports of RM5.75 billion to Pakistan in 2009 compared to RM5.74 billion in 2008, registering an increase of 0.2 percent. Elaborating, he said major exports from Malaysia to Pakistan during 2009 remained palm oil with exports of RM 4.01 billion compared to RM 3.842 billion in 2008, registering an increase of 4.3 percent.

Other Malaysian exports to Pakistan such as insecticides, natural rubber, and fibre wood board suffered a decline of 5.11, 51.62 and 8.9 percent respectively, he added. "The surge in exports of Pakistani products was recorded in exports of fish valued at RM44.25 million compared to 36.60 million in 2008, thereby registering an increase of 20.87".

Kundi said export of Pakistan rice suffered a major setback with total export of RM88.36 million compared to RM 110 million in 2008, registering a decline of 20.38 percent. However, according to the High Commission, rice export to Malaysia is likely to increase fourfold keeping in view various orders booked by Malaysian companies for year 2010.

Giving further analysis, he said exports of yarn from Pakistan were recorded at RM. 22.82 million compared to RM 22.78 million in 2008, thereby registering a slight increase of 0.18 percent. Woven fabric of synthetic stable fibre registered an unprecedented increase of 100 percent from export figure at RM 25.84 million in 2009 compared to MR 12.90 million in 2008.

Another robust increase of up to 224.69 percent was recorded in the export of electrical appliances, line telephony in 2009, valued at RM 18.49 million compared to 5.69 million in 2008. The Commercial Counsellor hoped that the volume of trade between the two countries will receive a quantum jump in coming years with growing awareness among the business community of the benefits of FTA signed between the two countries in 2007.


Copyright Business Recorder, 2010

Reactions: Like Like:
2


----------



## Omar1984

*Pakistan to get 23.864m tonnes wheat crop in 2010​*
* Government has 1.66 million tonnes net surplus of wheat 

By Ijaz Kakakhel 

ISLAMABAD: The government expects wheat production of 23.864 million tonnes for the year 2010 as against the set target of 25 million tonnes, reflecting a shortfall of 4.5 percent, sources told Daily Times here on Wednesday. 

The initial estimates of 23.864 million tonnes wheat production was achieved from 9.041 million hectares sowing area. The provincial break up is; Punjab 18.240 million tonnes as against the target of 19.205 million tonnes, Sindh 3.651 million tonnes as against the target of 3.862 million tonnes, NWFP 1.184 million tonnes against the target of 1.210 million tonnes and Balochistan 0.789 million tonnes against the target of 0.903 million tonnes. 

The total wheat stock on April 4 was 4.33 million tonnes comprising 3.49 million tonnes with food departments of four provinces and 0.84 million tonnes with PASSCO. Officials in the Ministry of Food and Agriculture said if the government releases from April 5 to 15, around 30,000 tonnes per day, the total wheat requirement of the country would be 0.33 million tonnes and the carryover stock of the commodity would be 4 million tonnes. 

With the arrival of new wheat production of 23.86 million tonnes and carryover stock of 4 million tonnes, total availability of the commodity would be 27.86 million tonnes, the sources said. Total requirement for population of 175 million at 124 kilogrammes per capita/annum is 21.70 million tonnes. They further said that about 2 million was used for seed, feed and wastage at 8 percent (for seed 1 million tonnes, feed 0.6 million tonnes and wastage 0.4 million tonnes). 

The strategic reserve has been set at 2.5 million tonnes. Accumulatively, total wheat requirement is 26.20 million tonnes against the total availability of 27.86 million tonnes. The net surplus of wheat in the country is 1.66 million tonnes, the sources maintained. 

In 2007-08, when the wheat support price was Rs 425 per 40kg, the farmers brought 8.55 million hectares under sowing and produced 20.99 million tonnes. After an increase in wheat support price from Rs 425 per 40kg to Rs 950 per 40kg in 2008-09, the farmers brought 9.05 million hectares under sowing and wheat production enhanced to 24.032 million tonnes. Doubling the wheat support price resulted in an increase of 5.9 percent (1.24 million acres) wheat sowing area. The increase in wheat support price benefited only producers of the commodity and the cost of flour in open market shot up from Rs 20 per kg to Rs 30 to Rs 32 per kg. The government has fixed the wheat procurement target at 7.5 million tonnes for the year 2010 against the initial target of 6.5 million tonnes last year but later on procured 9.233 million tonnes. 

According to schedule the procurement target is Punjab has to procure 4 million tonnes against last years target of 3.5 million tonnes, Sindh 1.5 million tonnes while last year it was 1.20 million tonnes, NWFP and Balochistan have to procure 0.3 and 0.1 million tonnes, respectively for the coming season. The procurement target for PASSCO has been fixed at 1.6 million tonnes in the current year against the last years initial target of 1.5 million tonnes. It is for the second time that the provinces would directly procure wheat in the market. Before this decision, the whole procurement would be made through PASSCO. 

Sources said that on special directives of the prime minister, the Ministry of Finance would finance the entire 7.5 million tonnes wheat procurement operation in 2010 across the country. The procurement process has already begun in Sindh as 323,000 tonnes of new wheat crop has been procured by Sindh Food Department till April 5. 

In Punjab and NWFP the procurement process would begin from April 20 and would get full momentum from next month, officials in the ministry claimed. 

Sources said that Finance Ministry secretary informed the Wheat Procurement Advisory Board meeting held a few days ago that the government would provide entire cash for the procurement of 7.5 million tonnes in 2010. 

According to the rules, the State Bank will have to provide funds for wheat procurement process but this year, the government has about 2 million tonnes wheat stock as carryover. It was suggested that first the government should dispose of surplus wheat through export or sell out in the local market. But the value of wheat in the international market has been lower than Rs 950 per 40kg, on which the government had purchased wheat from farmers. It was difficult for the government to export the commodity at reduced prices and incurred losses. On the other hand, the local flourmills were ready to purchase the old stock of wheat at subsidised rate but reduction in wheat price would distort the local market mechanism. 

Despite the governments announcement of Rs 950 per 40kg wheat support price, the farmers in Sindh were paid Rs 800 to Rs 900 per 40kg.

Reactions: Like Like:
1


----------



## Omar1984

*Expanding infrastructure, retirement of debt: Wateen to launch Rs 2 billion IPO on April 20-21​*
KARACHI: Wateen Telecom Limited will float initial public offering (IPO) worth Rs 2 billion in Pakistan equity market on April 20-21 in order to expand its infrastructure network and retirement of debt.

The telecom giant will issue 110 million shares to institutional investors and general pubic at a price of Rs 10 per share amounting to Rs 1.1 billion with a green shoe option of 90 million ordinary shares. This will increase the paid up capital of the company from Rs 4.174 billion to Rs 5.275 billion.

The equity generated amount will be repaid to financial institution on the account of Letter of Credits (LCs) worth Rs 14 billion and produce capital for the company to acquire the rest of 49 percent shares in Wateen Solution (Pvt) Ltd. The shares&#8217; subscription will be categorised into four for the various classes of investors. The IPO&#8217;s are pledged to underwrite by 14 leading banks of the country. Wateen Telecom CEO Tariq Malik said the company has long-term and committed investment plans in the country despite any political economy and law and order situation of the country.

The company is playing an active role in making Pakistan a regional hub for information and communication network with its optic-fiber international gateways.

Wateen is laying optic-fibre to connect India at Wagah and Chaman and Tukhum to link Afghanistan, he said and added it will offer services to various telecommunication services inside and in neighboring countries of Pakistan. Malik said the company is aggressively pursuing its multiple plans in all its services including wireless telephony, broadband and infrastructure services that will enhance its revenues manifold. Its corporate clients include leading financial institutions, cellular phone companies and television channels. The company has acquired a lion&#8217;s share in international calling traffic and it has been a leading performer in broadband and wireless local loops sectors. Arif Habib Group of Companies Chairman Arif Habib said the equity markets have shown impressive performance in the past few weeks on the stable cooperate sector and its flourishing financial health.

He said the opportunities are lucrative in Pakistani equity markets for local and international investors as it is recognised by all rating and financial institutions as the best market in delivering handsome returns with the lowest business cost. Arif Habib said the clouds of crisis in judiciary, politics and economy have been scattered and the situation is improving in the country for business and investments. The developments on judiciary, NFC Awards and tabling of 18th Amendment are good signs for the country&#8217;s stability that will be weighed positively by international rating agencies. staff report


----------



## Omar1984

*Rising prices of cement, steel to hit construction: ABAD​*
KARACHI: Expressing its concern over the ever-increasing prices of steel, cement and petroleum products Association of Builders And Developers of Pakistan (ABAD) has issued a statement saying the increase will have a very negative impact on the construction activities.

Not only will it become next to impossible for the poor and middle income segments of the society to acquire a roof over their heads, but the rate of unemployment for skilled and unskilled labours will touch new heights. 

In a joint statement, ABAD Chairman Engineer Farooq-uz-Zaman Khan, Vice Chairman Muhammad Arif Siddiq and Regional Chairman Saleem Kassim Patel have said the last two months have seen record increase in the prices of steel. The cost of steel bars prepared from ship plates, which were available at Rs 45,000 per tonne two months ago, have now crossed Rs 60,000 per tonne. This increase in steel prices will resultantly increase the construction cost by at least 10 percent.

The ABAD office bearers said in a ground-plus-seven residential building, steel has a share of 30 to 40 percent in the total construction cost, whereas in a 4-storey building it is between 15 to 20 percent. The cement manufacturers too have enhanced the prices of a 50 kilogrammes bag by Rs 10 to Rs 15 soon after the end of the winter season. If the government fails to take prompt action it is feared the prices of cement will be increased further.

They said that the share of cement in the total construction cost comprises of 15 percent and the recent enhancement has resulted in an increase of 2 to 5 percent in the cost of a housing project.

The increase in petroleum product cost also enhances the construction cost especially the increase in the prices of light diesel, which has increased the transportation cost significantly. 

They further said that there is a clause of price enhancement of residential unit in KBCA rules and regulations but majority of builders do not increase the prices keeping in view the hardships faced by their allottees. 

The lapse of the Competition Commission Ordinance (CCO) has also provided a free hand to the cement manufacturers and it is feared, as in the past that cartelisation will take place to increase the cement prices.

They appealed to the president and prime minister to convert CCO into an Act of the parliament. Similarly, steps should be taken to check the prices of steel and petroleum products so that the increase in construction activities will boost the business of industries allied to the construction sector. ABAD demanded that maximum incentives and benefits should be given to the construction sector in order to put the derailed economy of the country back on its track. staff report


----------



## Omar1984

*&#8216;SBP to develop Shariah-compliant short-term papers&#8217;​*
KARACHI: Governor State Bank of Pakistan Salim Raza has disclosed that the SBP is actively working with the industry and the federal government to develop Shariah compliant short-term securities, which will be issued on regular basis. 

Speaking on the occasion of a talk on &#8216;Current Islamic Banking Paradigm and the Way Forward&#8217; by Dr. Umer Chapra, a renowned international scholar on Islamic Economics and Finance on Wednesday, Raza said the State Bank&#8217;s immediate objective is to improve and diversify avenues for short-term liquidity management for the Islamic banking industry. 

&#8220;Islamic banks in Pakistan have to live with the big constraint of only being able to place their surplus funds with other Islamic banks, in the absence of a suitable investment opportunity,&#8221; he said and added this market gap both limits earnings, and inhibits aggressive deposit mobilization drives. 

Raza said the Islamic banking in the country, from a modest start in 2002, has made a good progress and achieved 6 percent market share. &#8220;The heightened global interest in the subject, particularly after the recent financial crisis, leads one to expect that Islamic banking will make more rapid strides globally and in Pakistan,&#8221; he added. 

The SBP governor stressed the need to improve understanding among investors more broadly about those principles in Islamic finance that provide investors assurance about risk evaluation and risk management frameworks and practices that improve upon most conventional counterparts. Referring to participatory financing modes, where risk is shared between the entrepreneur, the bank and the investor, he said these structures could provide all the advantages that venture capital and private equity structures do in conventional finance without the risk often created by high leverage. The participatory modes also don&#8217;t view the investment merely a financial exercise, but the one that seeks to achieve true economic value addition, he emphasised. 

He noted while the State Bank has taken a number of initiatives in the past to train Islamic bankers, the pace of growth of the industry is faster than the supply of trained and well-qualified Islamic bankers. &#8220;A strategy is, therefore, being developed to improve the skills of the Islamic banking industry professionals which include collaboration with reputed national and international institutions offering/ sponsoring Islamic banking trainings,&#8221; Raza added.


----------



## Omar1984

*Asia Pacific Leather Fair: Pakistan receives $50m export orders​*
KARACHI: Pakistan received around $50 million orders for the export of leather and leather products at Asia Pacific Leather Fair (APLF) 2010 in Hong Kong.

Pakistan Tanners Association (PTA) Chairman Gulzar Firoz said on Wednesday the successful participation of Pakistan in the world famous mega event of APLF-2010 shows the worth of the country&#8217;s quality products.

He said the event from March 29 to 31 at Hong Kong Convention Centre, Wanchai attracted a large number of businessmen and traders from 32 countries.

Firoz said, &#8220;On the spot about $30 million export orders of finished leather have been concluded and about $20 million orders are in the pipeline.&#8221; 

He said PTA set Pakistan pavilion for its 55 participants in coordination with consulate general of Pakistan, Hong Kong with the financial assistance from Trade Development Authority of Pakistan (TDAP) and there were also seven private participants.

&#8220;This is a record participation of Pakistan in APLF-2010 out of 32 countries where PTA&#8217;s member participants displayed their finest quality of finished leather of all sorts with new and innovated fashion leather and leather products,&#8221; Firoz added.

He said the visiting traders and businessmen appreciated the highest number of participation of the exhibitors from Pakistan. Buyers from different countries including Indonesia, Vietnam, USA, New Zealand, Korea, Japan, Singapore, China, India, Taiwan, Germany, Canada, Turkey, Italy, Czech Republic, Romania, Poland and Hungry showed keen interest in Pakistan&#8217;s leather products.

Despite tough competition by China, India, Bangladesh and Vietnam in particular, Pakistan&#8217;s finished and semi finished leather goods are still in high demand in the international market, former PTA chairman Agha Saiddain said.

&#8220;The current export figures of leather products for 8-month period are $555 million as compared to $698 million in the same period of last year,&#8221; he added. Despite the high cost of production including power and gas tariffs, taxation and higher cost of inputs, the leather sector is striving for better position in the international market, he maintained.

&#8220;The export of leather sector industry needs a bail out package to come out from deep crisis by the government like relief packages with more incentives, which are allowed in India, China and Bangladesh,&#8221; he added. 

Agha said in 2007-08 the exports of leather sector were $1,220 million and we were losing ground to India and Bangladesh. The leather industry should be allowed export refinance rate at 5 percent besides allowance of 25 percent subsidy on electricity and gas bills as allowed in Turkey, he added. 

The leather industry should be exempted from withholding tax and Export Development Surcharge for 2 years, he added.

&#8220;It is a wrong conception given by the Federal Board of Revenue officials that the exporting industry would enjoy zero rating. In fact the status of zero rating has been for the past decade and it is the same all over the world,&#8221; he said.

Consulate General of Pakistan, Hong Kong Consul General Ahmad Balal accompanied by APLF Chief Executive and Organiser Michael Duck inaugurated the Pakistan pavilion.


----------



## Omar1984

*Pakistan, Czech Republic to expand trade relation​*
RAWALPINDI: Ambassador of Czech Republic Pavol Sepelak said his country desires to enhance trade relations with Pakistan. He said Czech Republic has already invested in two energy projects of 250-megawatt capacity near Lahore.

He said Pakistan is a safe haven for foreign investors and it is the right time to invest in Pakistan. He further said Czech Republic is the only country in the European Union, which has largest trade volume of $79672 million with Pakistan. &#8220;But it is need of the hour to further enhance the bilateral trade relations between two countries&#8221;, he added. Pavol said Pakistani products such as chemical, paper, rubber, sports good and textile products are very popular in Republic. He lauded the services of RCCI for the business community of the region.

President Rawalpindi Chamber of Commerce and Industry (RCCI), Kashif Shabbir said Pakistan is striving hard to come out of the prevailing global economic crunch. He said Pakistan needs trade not aid and it is the right time for the friends of Pakistan to come forward and help Pakistan by investing in the country. staff report


----------



## Omar1984

*WB review mission: FBR asked to ensure filing of ST, IT returns​*
ISLAMABAD: In order to ensure tax compliance in the country, the World Bank (WB) review mission on Wednesday asked the Federal Board of Revenue (FBR) that there should be no non-filer of sales tax and income tax returns and withholding statements in cases of Large Taxpayer Units (LTUs). 

The review mission had visited Pakistan during March 22-31 to access the need for further extension in the Tax Administration Reforms Project (TARP) for the year 2011, as the WB has already extended the TARP till December 2010, official sources informed Daily Times. 

In his presentation at Commissioners Conference, World Bank&#8217;s Mission on Tax Administration Reforms Project head Carlos Silvani appreciated the increase in the number of registered persons with the sales tax department. He said that the potential revenue generating unit, which are non-filers should be given priority as compared to small non-filers. This strategy would help the FBR to deal with major non-filers in the first phase, which would be followed by comparatively low potential non-filers. 

There is an increase of 10 percent return filers on the sales tax side, which was appreciated by the WB. In cases of non-filers of returns, he stated that the FBR should prioritise cases where potential non-filers should be given top priority for analysis of data and enforcement. The non-filers of returns should be analysed and priority should be given to those non-filers where business activity is taking place. Citing an example, he said, if a potential non-filer is carrying out business activity on the customs side like imports, sales tax, income tax or withholding taxes, it should be given priority for verification of data. 

The FBR can also utilise information about the capital declared by the companies with the Securities and Exchange Commission of Pakistan (SECP). The companies declaring more capital should be given priority for analysis of data as compared to companies showing less capital. In this way, major cases could be securitised having more capital where data is available with the SECP. The similar strategy of prioritisation could be adopted by the FBR in companies&#8217; cases to ensure that the FBR should utilise its resources on major cases of non-filers etc. 

It has been pointed out that there should be no non-filer of sales tax and income tax returns and withholding statements in cases of LRUs. The LTUs are most compliant units with maximum business activity and turnover etc and there should be no case of non-filers whether sales tax, income tax or withholding tax at these units, sources added. 

He expressed satisfaction over the progress made through reforms. He mentioned that new centralised IT systems are being rolled out to RTOs and LTUs. A national audit plan is being put in place along with new audit procedures; a new enforcement plan is also in place, expedited refund system is progressing well and new functionally integrated organisation is in place. The result is that the registered taxpayers have increased by 17 percent from July 2008 to December 2009. Number of sales tax returns grew by 10 percent during July 2009 to July 2010 as compared to the corresponding period of previous year. Non-filing has decreased. The amount of arrears has decreased by 14 percent while the number of cases fell by 13 percent. He further recommended that the performance indicators need to be refined and taxpayers categorised to set priorities. Targets should be set for gross and net revenue. Time of processing sales tax refunds should be used as an indicator. He advised that FBR&#8217;s action plan should be used as a comprehensive management tool. 

He was of the view that a number of active non-filers in LTUs, although small, should be brought to zero. Regarding status of execution of audit plan, Silvani recommended to move from random selection to risk assessment selection. He pointed out that business processes review has not progressed enough. He also mentioned that additional tax to defaulters is not charged automatically. He urged the department to keep expanding the active taxpayers list. He stated that desk audit should be based on the Exception Management System (XMS) with special emphasis on risk-based audit regarding HR policies. He laid emphasis on evaluation of staff based on performance followed by merit-based compensation. He stressed the need to enhance technical capacity of mid-level staff. According to him, the challenges faced in 2010 include increase in revenue, full implementation of the expeditious refund system, VAT implementation, design and implementation of new HR policy and effective monitoring of withholding taxes. 

He also emphasised that the FBR should prioritise areas for taking enforcement actions. The priority of sectors or individuals having more potential should be analysed to obtain the desired results of broadening the tax base. For this purpose, the FBR has necessary tools of technology and FBR&#8217;s IT systems for obtaining necessary information and third party data.


----------



## Omar1984

*KSE gains 103 points to cross psychological level of 10,500 pts​*
KARACHI: The Karachi stock market crossed the psychological level of 10,500 points on Wednesday on account of renewed foreign interest in the local oil and gas sector following rise in international oil prices.

The market breached the 10,500 points level after a gap of 19 months. The Karachi Stock Exchange (KSE) 100-share index gained 103.19 points or 0.99 percent to close at 10,523.01 points as compared to the previous session&#8217;s 10,419.82 points. 

The KSE 30-share index closed at 10,762.04 points with a rise of 100.16 points. The KMI 30 closed at 15,914.54 points with a surge of 116.59 points. 

Analysts said that the market opened on a positive note and this trend continued throughout the trading session during which improved volumes were traded reflecting growing confidence among investors. 

The market turnover went up by 22.90 percent and traded 300.74 million shares as compared with the previous session&#8217;s 244.70 million shares. 

The overall market capitalisation was up by 0.94 percent and traded Rs 2.976 trillion as against Rs 2.948 trillion of the previous session. Out of 421 active companies, 228 closed in the positive zone, 174 in negative and 19 remained unchanged. 

&#8220;Foreign driven activity at the market allowed the 100-share index to cross 10,500 points level after 19 months,&#8221; said Topline Sec analyst Frahan Seth. 

&#8220;Lotte Pakistan dominated the volumes in anticipation of better first quarter results due to higher PTA margins.&#8221; Furthermore; Silk Bank remained in the limelight on the back of recent takeover gossips, he added.

&#8220;Bullish activity witnessed on renewed foreign interest in oil and gas, fertilizer and bank scrips,&#8221; said Shahzad Chamdia Sec analyst Ahsan Mehanti. &#8220;Rise in international oil prices near to $87, positive statements on Pakistan nuclear weapons by US, rise in local cement prices played a catalyst role in the positive activity ahead of quarterly result announcement sessions.&#8221;

&#8220;Lotte Pakistan continued to stay the volume leader followed by Silk Bank,&#8221; said Aziz Fida Husein and Co analyst Husnein Asghar Ali. 

The KSE 100-share index opened in the green zone with a gain of 22.99 points and at the end of the day closed at 10,523.01 points with a rise of 103.19 points. staff report

Reactions: Like Like:
1


----------



## Omar1984

*Pak-US ties need to be strengthened​*
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Abdul Majid Haji Muhammad in a meeting held with US Ambassador Anne W. Patterson at the Embassy of United States of America Islamabad highlighted the role of Karachi Chamber of Commerce & Industry (KCCI) in the socio-economic development of Pakistan and its contribution in the national exchequer with a firm commitment to promote trade and industry in Karachi and elsewhere. President KCCI and US Ambassador also exchanged views on geo-political and socio-economic issues. staff report


----------



## ameer219

*THE RUPEE: all-round gain *


KARACHI (April 08 2010): The rupee managed to retain its upward move versus dollar on Wednesday after an apparent positive development on the political front following the approval of the 18th Amendment Constitutional Bill 2010 by the Cabinet, money experts said.

On the interbank market, the rupee posted fresh gain of 30 paisa for buying at 83.60 and 24 paisa for selling at 83.70, they said. The rupee was able to expand its ground on expectations of rising trend in Foreign Direct Investment (FDI) and easy flow in remittances, some analysts said.

During the third Asian session yen gave up some ground as Australian dollar pushed to a fresh 18-month high, while euro began to lose its footing again as Greek debt worries kept it under pressure.

The yen fell to its lowest level since September 2008 on the Aussie, nearing a key Fibonacci level at 87.70 yen, while dollar buying down near 93.50 yen saw the Japanese currency reverse early gains and fall against the greenback.

OPEN MARKET RATES: The rupee adopted the same path against dollar, gaining 10 paisa for buying and selling at 84.10 and 84.30, dealers said. The rupee was also up by 20 paisa in relation to euro for buying and selling at Rs 111.95 and Rs 112.45, they added.

Business Recorder [Pakistan's First Financial Daily]


----------



## ameer219

*Government to adopt modern technologies for agriculture sector: Gondal *


ISLAMABAD (April 08 2010): Federal Minister for Food and Agriculture, Nazar Muhammad Gondal, has said that the government is planning to introduce the latest agriculture technologies for the treatment of the brackish underground water in certain areas of the country. The minister stated this in a meeting held with the visiting delegates of Magnetic Technologies of United Arab Emirates here.

Gondal said that there is about 6 million of saline land available in Pakistan and making such a huge amount of land cultivable would definitely bring about a very positive change in the agricultural sector of the country. The minister urged the visiting delegates to provide at least two devices for testing purposes so that the results are observed before entering into any deal with the company.

The company claims that Magnetic Technologies Corner (MTC) of Dubai, UAE is presently operative in more than 25 countries in the world. MTC Magnetic Solutions (MMS) unit is an inline device designed to pass water through a magnetic field of high gauss strength. Magnetic treatment of water elevates the PH that has the effect of reducing corrosion tendencies. The MMS changes around 18 properties of water, thus making it active and potent to ensure improvement in productivity and efficiency.

The minister further said that the economy of the country is directly related to agriculture and no progress is possible without development in the agricultural sector. He said if the results of the testing units are productive, the government would promote the technology by even providing subsidy to the farmers.

He also directed the technical experts to make suggestions after evaluating the results of the units. The visiting delegation included CEO of the company Junaid Khouri, Director International Operations Farid Uddin and Sales Manager Ibtisam. Secretary, Additional Secretaries and other officials of the ministry also attended the meeting.


Copyright Associated Press of Pakistan, 2010
Economy & Development - Pakistan Defence Forum


----------



## Mani2020

*KSE closes at 10,533.57*

the second highest monthly inflow ever, after inflows of $127 million in September last year.

KARACHI: The Karachi Stock Exchange's benchmark 100-share index (KSE-100) ended almost flat on Thursday as investors booked gains on higher levels and dealers said the market's direction would be determined by foreign inflows.

KSE-100 ended 0.10 percent higher, or 10.56 points, at 10,533.57. The index touched an intraday high of 10,594.39 points.

Volume was 244.15 million shares, compared to 299.5 million shares traded Wednesday.

"The market took a breather today," said Asad Iqbal, chief investment officer at Faysal Asset Management.

"Future movement will be a function of foreign flows."

According to official data, foreigners bought shares worth a net $5.87 million on Wednesday, bringing the total to $31.84 million this month.

However dealers said foreign activity was limited compared to previous days, which led to local investors booking profits at higher levels.

Net foreign portfolio inflows stood at $113 million in March -- the second highest monthly inflow ever, after inflows of $127 million in September last year.


----------



## ameer219

*Pak safe haven for investors*


RAWALPINDI - Ambassador of Czech Republic, Pavol Sepelak, has said that his country desires to enhance trade relations with Pakistan, while the Republic has already invested in two energy projects of 250 MW near Lahore.

He stated this while exchanging his views with the President RCCI, Kashif Shabbir, during his visit to the Chamber here.
He said Pakistan is a safe haven for the foreign investors and it is the right time to invest in Pakistan. He further said Czech Republic is the only country in the European Union (EU) which has largest trade volume with Pakistan. But it is the need of the hour to further enhance the bilateral trade relations between the two countries, he added.

Pavol said Pakistani products such as chemical, paper, rubber, sports goods and textile products are very eminent in Republic. He lauded the services of RCCI for the business community of the region.
Speaking on the occasion, President RCCI Kashif Shabbir, said that Pakistan is striving hard to come out of the prevailing global economic crunch. He said Pakistan needs trade not aid and it is the right time for the friends of Pakistan to come forward and help Pakistan by investing in the country.

He demanded of the Ambassador, that Free Trade Agreement (FTA) should be signed to further enhance the trade relations between the two countries.

Ambassador ensured his full cooperation in this regard. At the end Kashif Shabir thanked the Pavol Sepelak for visiting the RCCI.
Senior Vice President, Syed Ali Raza Saeed Shah, Vice President, Khawja Rashid Waien and other members of the RCCI were also present on the occasion.

Pak safe haven for investors | Pakistan | News | Newspaper | Daily | English | Online


----------



## ameer219

*Pak-Turkey trade to be enhanced to $2b by 2012*

KARACHI - Turkish Ambassador in Pakistan Babur Hizlan has said that efforts would be made to enhance the bilateral trade between Turkey and Pakistan to $2 billion by the year 2012 from the current level of 
$782 million.

Talking to the media, he described the prevailing volume of bilateral trade between the two brotherly countries as unsatisfactory. The Envoy said that, as a first step, the bilateral trade would be increased to 2 billion dollars by the year 2012.

The two governments, he added, want to enhance this to a five billion dollars mark later on as soon as possible. Babur Hizlan also spoke of the deep friendly ties between Turkey and Pakistan. He also referred to the recent visit to Pakistan by the Turkish President Abdullah Gul.

The Envoy said that, in October last year, the Turkish Prime Minister had also visited Pakistan.

He stated, &#8220;Our efforts are aimed at increasing the trade and economic partnership between our two countries.&#8221;
Babur Hizlan said that the Turkish Airlines has a flight frequency of four times a week between Istanbul and Karachi and there is a desire to increase it to seven days a week.

&#8220;There is also a desire to add new destinations of Lahore and Islamabad,&#8221; he said.

The Envoy said that increase in flight frequency would also result in enhancement in interaction of businessmen as well as people to people contacts. &#8220;This would have a positive impact on the ties between our two brotherly countries,&#8221; he added.

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Business/08-Apr-2010/PakTurkey-trade-to-be-enhanced-to-2b-by-2012

Reactions: Like Like:
2


----------



## Omar1984

*Telenor brings $2bln FDI ​*
ISLAMABAD, April 8 (APP) - The telecommunication company Telenor has brought in US$2 billion Foreign Direct Investment (FDI) into the country and is continuing to contribute in terms of ongoing investments, President and Head of Telenor for Asia Operations said. 

Heading a Telenor Pakistan delegation that met Minister of State and Chairman Board of Investment (BoI) Saleem H. Mandviwalla, here Thursday, Vice President and Head of Telenor for Asia Operations, Sigve Brekke, however sought BoIs support in rationalizing the taxation structure for the telecom sector to ensure continuous development of the industry in the country. 

He said that the move would also fuel channeling of resources towards infrastructure expansion and provision of move innovative services like easypaisa. 

On the occasion, Mandviwalla suggested the Telenor delegation to manufacture mobile handsets in Pakistan and establish their own manufacturing plant. 

He elaborated on the salient features of the Special Economic Zones (SEZs) and the benefits that it provides to foreign and local investors with tax breaks, fiscal and financial incentives. 

He said that a draft SEZ act has been framed and will be presented in the cabinet very soon for approval. 

Chairman BoI assured the delegates of support and cooperation for rationalizing the taxation structure for the telecom sector in Pakistan.

Reactions: Like Like:
1


----------



## Omar1984

*Pak exports to UK maintain upward trend ​*
LONDON, April 8 (APP)- Pakistan&#8217;s exports to the United Kingdom (UK) have seen an upward growth of 7.71&#37; with &#163;646,172.469 million worth exports from January to December 2009 according to figures of UK World Trade, released by the Revenue and Customs Office. This positive trend has been achieved despite the fact that British economy was in recession resulting in downward trend in exports from European, Asian and Middle Eastern countries. France was down -14.16, Germany -13.36, Italy -16.82, Saudia Arabia -9.55, Iraq-44.87 and Turkey -8.35. The UK remains among Pakistan &#8217;s top five export destinations with balance of trade in favour of Pakistan . 

The new figures showed 7.71 per cent growth when compared with the same corresponding period of January to December 2008.

Reactions: Like Like:
1


----------



## ameer219

*Telecom sector benefiting economy: Khosa*


ISLAMABAD: Arguably, Pakistan seems to have created a friendly business atmosphere lately, as there is a lot of potential to invest in the telecom sector. Its pretty encouraging that the government is cooperating with cellular companies for achieving the targets for expansion of information technology and telecom sector.

Advisor to Prime Minister for Information Technology, Sardar Muhammad Latif Khan Khosa expressed these views, the advisor sought the cooperation of the company to rebuild telecom infrastructure in Khyber-Pukhtoonkhuwa, which had been badly damaged by the terror activities and added, Infrastructure is being reinstalled in the Malakand Division after normalcy has turned to the area.

He appreciated the contribution of the Telenor for providing basic telephony and data services in Malakand Division and said the government wants to spread the benefits of the telecom revolution to all corners of the country.

The Ministry of Information Technology is putting all efforts to promote the development of telecommunication services in un-served and under-served areas of the country. Telecom services being provided in the country include basic telephony, broadband internet, infrastructure for the services (like Optic Fiber) and Community Tele-centers for those who could not afford the necessary instruments/devices, the Advisor maintained.

Head of Telenor Asia, Sigve Brekke, while meeting with Latif Khosa, informed the minister that Telenor Pakistan was the 2nd largest mobile operator in the country with largest data coverage and has invested over $2 billion and is willing to invest more in the country.

The advisor assured Sigve Brekke to provide protection and safety and said Pakistan has friendly environment for investment. staff report


Daily Times - Leading News Resource of Pakistan


----------



## ameer219

*BenefitTing farmers: Gilani allows export of 2 million tonnes wheat*

Wheat prices decline by 35 percent in international market 

By Ijaz Kakakhel

ISLAMABAD: Prime Minister Yousaf Raza Gilani on Thursday decided to allow the export of 2 million tonnes wheat in order to avoid the expected wastage or losses of the new wheat crop.

The prime mister took the decision in the light of expected 23.864 million tonnes wheat production for the year 2010 and about 4 million tonnes of carryover stock of the previous year. 

The prime minister said that the benefits of the growers and small farmers have to be protected while finalising the policies related to agricultural commodities, particularly wheat. 

He expressed these views while chairing a special meeting to review the current wheat stock position and assess the production of new crop. The meeting was held here this afternoon at the PMs Chamber in the Parliament House. During the meeting it was decided that fiscal and storage space would be created to export up to 2 million tonnes wheat at the earliest. 

It was observed that wheat production is good but less than the last years production. The efforts of provincial governments and federal institutions in managing last years wheat crop were greatly appreciated. 

However, rates and mechanism of exports would be decided later on, sources told Daily Times. At present the rate of wheat at international market is $210 per tonne. When the government fixed the wheat support price at Rs 950 per 40 kilogrammes in 2008, the wheat price in the international market was $320 per tonne. The price of wheat in the international market declined by 35 percent but in Pakistan the price remained unchanged. 

An official in the Ministry of Food and Agriculture (MINFA) told this scribe that the total storage capacity in the country was 4.5 million tonnes, which is full right now while the procurement of new crop had already initiated in Sindh. The harvesting and procurement process of wheat in rest of the country would begin from April 15 and gradually gain full momentum during the month of May 2010. 

Due to limited storage capacity, it would be difficult for the government to maintain the expected huge stock of wheat for a longer period. To avoid expected loss to the stored wheat in open areas, it would be better to export wheat as early as possible, the official maintained. The Punjab food and agriculture minister told a private TV channel that the procurement of wheat in the current season would be slow. 

The lower wheat procurement process particularly in Punjab would be a great setback for hard producers in the province and allowing wheat export in the current situation was helpful for farmers so that they might get fair returns for their hard produce, the ministry official maintained. 

Federal Minister for Food and Agriculture Nazar Muhammad Gondal, Adviser on Finance Abdul Hafeez Sheikh, Punjab Chief Minister Mian Shahbaz Sharif, Senator Ishaq Dar, Leader of Opposition in NA Chaudhry Nisar Ali Khan, secretaries finance, food and agriculture and Punjab chief secretary attended the meeting. 

Sources said the meeting decided that the government would contact regional countries including Afghanistan, Iran and Bangladesh at government level to minimise the expected loss to the government. Another option available with the government was to allow wheat products exports through private exporters at subsidised rates. 

Agriculture Developmental Commissioner Qadir Bux Baloch said proper mechanism for wheat exports would be determined in the Economic Coordination Committee of the Cabinet. 

The government expects 23.864 million tonnes wheat production. The provincial break up is Punjab 18.240 million tonnes, Sindh 3.651 million tonnes, NWFP 1.184 million tonnes and Balochistan 0.789 million tonnes. Officials in the MINFA told this scribe that total wheat stock on April 4 was 4.33 million tonnes comprising 3.49 million tonnes with food departments of four provinces and 0.84 million tonnes with PASSCO.


Daily Times - Leading News Resource of Pakistan


----------



## ameer219

*UK backing Pakistan's entry to a trade scheme: Miliband *

LONDON (April 09 2010): British Foreign Secretary David Miliband has said both his country and Pakistan enjoy a very positive and mutually supportive relationship, which would continue in future as well. Talking to the media during his visit to the Islamic Centre in Tooting, south west London on Thursday to support the re-election of Labour MP Sadiq Khan, he said this relationship has burnished and nurtured under the Labour Government.

Responding to a question on Kashmir, he said the UK position on the issue has been absolutely clear. "We support strong and improved relations between Pakistan and India and it is up to them to decide the matter through bilateral dialogues."

Answering another question, the Foreign Secretary said there would be no cut in international aid even though the Labour Government has said that on winning May 6 general elections the public spending would be curtailed to reduce deficit. "We are absolutely committed to meet the UN target of 0.7 per cent of national income going to the international development."

He spoke of the 665 million pounds assistance being provided by Britain over the next four years to alleviate poverty in Pakistan through improvement in education and health facilities. The Foreign Secretary said the UK Government, ahead of a crucial EU conference later this month, is backing Pakistan's entry to a trade scheme, which can bring benefits to it of around 250 million Euros a year.

Miliband rejected impression that vast majority of British Muslims are radicalised. On the contrary he said they are proud and committed British citizens who are getting education, jobs and totally committed to their community.


Business Recorder [Pakistan's First Financial Daily]

Copyright Associated Press of Pakistan, 2010


----------



## ameer219

*
Warid signs MoU with PIA *

KARACHI (April 09 2010): Warid Telecom (Pvt) Ltd country's most reliable cellular service provider achieves another milestone by signing MoU with Pakistan International Airlines (PIA). By the virtue of this MoU PIA will use voice and data communication services of Warid Telecom.

The signing ceremony of this agreement took place at PIA head office here. The MoU was signed between Muneer Farooqui, Chief Executive Officer, Warid Telecom and Captain Aijaz Haroon, Managing Director PIA. Shahid M. Murtaza, GM Corporate Accounts and Enterprise Solutions, Warid Telecom, Asad Afridi GM Communications, PIA along with other senior officials were present on the occasion.

Commenting on Warid, PIA partnership, Muneer Farooqui, Chief Executive Officer Warid Telecom said "PIA is the Pakistan's national flag carrier and we are really pleased for having this opportunity to serve the communication needs of such a prestigious and large scale organisation.

I am sure we will bring PIA an exceptionally delightful experience. Our priorities include 'Quality First' at forefront and we always strive to present the smartest, advanced and customised solutions for our Corporate Sector. Our partnership with Pakistan International Airlines is a great value addition to our Corporate Portfolio. Warid is determined to continuously bring best of the breed communication solutions to optimally serve the communication needs across all segments. I wish Warid and PIA relationship to grow and flourish in years to come, Insha Allah."

Warid's GM Corporate Accounts and Enterprise Solutions, Shahid M Murtaza said "We are proud to be associated with Pakistan International Airlines. Our relationship will prove successful and beneficial for both the organisations. We are delighted to have PIA's confidence in us and we are sure the partnership will go a long way." Managing Director Pakistan International Airlines Captain Aijaz Haroon said "PIA is glad to have Warid Telecom (Pvt) Ltd as its partner in business by way of providing communication services to the national carrier.-PR

Business Recorder [Pakistan's First Financial Daily]

Copyright Business Recorder, 2010

---------- Post added at 07:05 PM ---------- Previous post was at 07:04 PM ----------

* 'Lot of potential exists in telecom sector for investment' *

RECORDER REPORT 
ISLAMABAD (April 09 2010): Pakistan has conducive working atmosphere, as there is a lot of potential to invest in the telecom sector, said Advisor to Prime Minister on Information Technology, Sardar Latif Khosa. "We want co-operation of cellular companies to achieve the targets of expansion of information technology and telecom sector," Khosa said in a meeting with a three-member delegation of Telenor headed by Telenor Asia Head, Sigve Brekke here on Thursday.

The Advisor sought the co-operation of the company to rebuild telecom infrastructure in NWFP, which has been badly damaged by the terror activities. He further said that infrastructure is being reconstructed in the Malakand Division after normalcy has returned to the area.

He said Ministry of Information Technology is making all out efforts to promote telecommunication services in un-served and under-served areas throughout the length and breadth of the country. Talking on this occasion, Sigve Brekke said that Telenor Pakistan is the 2nd largest mobile operator in Pakistan with largest data coverage and has invested over $2 billion in the country.


Business Recorder [Pakistan's First Financial Daily]
Copyright Business Recorder, 2010


----------



## ameer219

*US offers support to Pakistani entrepreneurs *

ANWAR ADNAN JAFRI 

KARACHI (April 09 2010): To a question put forward by Business Recorder, Senior Director for Global Engagement on White House's National Security Council (NSC) Pradeep Ramamurthy said that the US is willing to support Pakistani entrepreneurs, particularly the ones from war-torn areas provided they successfully articulate their challenges. The idea behind such a support is to strengthen entrepreneurs in playing a pivotal role towards community development, he added.

Ramamurthy said this in a web chat on Thursday in Washington DC on the Presidential Entrepreneurship Summit, which was arranged to deepen ties between business leaders, founders and social entrepreneurs in the US and Muslim-majority countries, including their minority population and Muslim communities around the world.

The helping hand comes at a time just after the first ever 'Strategic Dialogue' at the ministerial level took place between the two countries. United States Pakistan Business Council (USPBC) also expressed its strong support for the strategic dialogue. In fact, in a press statement Miles Young, member of the Board of Directors (USPBC) lauded the meeting of US Secretary of State Hillary Clinton with Foreign Minister Shah Mehmood Qureshi. Young minced no words in saying: "Deeper economic ties are an essential prerequisite for stronger security ties".

US President Barack Obama in his speech - 'A New Beginning', which was given in Cairo last year, announced the holding of this summit on entrepreneurship to address some of the serious issues faced by entrepreneurs of Muslim majority countries along with their minority population and Muslim communities all over the world.

During the web chat a question was raised by Mahmoud Hamalawy of Aljazeera TV about the objectives behind the summit, Ramamurthy replied that the focal point of Obama's foreign policy is to find out a way in which the country can play a useful role in educating entrepreneurs, particularly the youth.

Answering Nashwa Abdel Wahab, a guest entry in the web chat, he said that agenda of the summit is to spread awareness on the culture of entrepreneurship, an openness about failures and the possible role of technology in achieving favourable results. To another query he said that the US government wants relationship with people outside government also, for instance entrepreneurs, educationists, NGOs, etc.

Replying to a significant question about welcoming entrepreneurs from Afghanistan, he said that already entrepreneurs from Afghanistan are on their (US) list. On a question put forward by a group of journalists from Cairo, the NSC official stated that this will not be a one time gathering, but follow-ups would be held at regular intervals to achieve the ultimate goal.


Copyright Business Recorder, 2010
Business Recorder [Pakistan's First Financial Daily]


----------



## Luftwaffe

*Govt suffers Rs 2.6 billion losses in Gilgit wheat scam*
Friday, April 09, 2010
By Usman Manzoor

ISLAMABAD: Contractors in the Directorate of Civil Supplies and Transport of Gilgit have caused a damage of over Rs 2.6 billion to the Government of Pakistan while transporting wheat from Islamabad to Gilgit-Baltistan in the last three years, documents available with The News claim.

The Audit and Inspection Report on the Accounts of Directorate Civil Supplies and Transport, Northern Areas, Gilgit (Now Gilgit Baltistan) for the year 2006 to 2009 shows that the directorate, which was working under the Kashmir and Northern Areas Division, has caused a loss of Rs 2,595,347,026 to the national exchequer under the domain of less recovery of sale price.

Para 04 of the audit report says: &#8220;As per provisions of para-26 GFR, it is the responsibility of every controlling officer to see that all sums due to government are regularly and promptly assessed realised and credited in the government account. As per Economic Coordination Committee (ECC) decision dated 17/04/2002 and subsequent clarification by Finance Division, the cost of transportation of wheat and handling charges are to be borne by government. During the scrutiny of record of Directorate of Civil Supplies and Transport, Gilgit, it was observed that the management had not passed on even the purchased cost fully to the purchaser, which resulted into loss to the govt.

&#8220;For 2006-07, some 108,096.204 metric tonnes wheat was transported from Islamabad to Gilgit Baltistan. The purchase price of this wheat was Rs 12,331/M tonnes while it was sold for Rs 8,086/M tonnes, thus, causing a loss of Rs 437,653,645 to the national kitty in 2006-07. The next year 120,003.466 M Tonnes wheat was transported to Gilgit-Baltistan and was sold for Rs 8,072/M tonnes while its purchase price was Rs 13,522/M tonnes. This year, the government had to bear a loss of Rs 654,018,889. In 2008-09, some 136,511.529 M tonnes of wheat were transported to the Northern Areas and was sold for

Rs 8,087/m tonne while its purchasing price was Rs 19,102/M tonne, hence causing a loss of Rs 1,503,674,492.

&#8220;It was a serious violation to the provisions of GFR and ECC decision on the subject. Audit proposes that responsibility of loss may be fixed and amount recovered from defaulters or position may be clarified to audit or otherwise.&#8221;

The department, in its reply, has mentioned that the ECC and the cabinet during their meetings dated 28-03-2000 and 19-04-2000 had decided that the current issue price of wheat to consumers of NA was maintained.

The auditor had replied to the department that the reply was not correct as it was clarified by the Finance Division and subsidy will be only in the transportation charges. Further, the issue price for every next year was issued with the approval of ECC.

Moreover the audit report also points out that an extra amount of Rs 10.4 million was paid to NATCO, a corporate organization, and Rs 4.5 million to different contractors on account of escalation on transpiration charges against the rules. NATCO was also paid Rs 53.89 million extra in contradiction to contract agreement.


----------



## SHAMK9

luftwaffe said:


> *Govt suffers Rs 2.6 billion losses in Gilgit wheat scam*
> Friday, April 09, 2010
> By Usman Manzoor
> 
> ISLAMABAD: Contractors in the Directorate of Civil Supplies and Transport of Gilgit have caused a damage of over Rs 2.6 billion to the Government of Pakistan while transporting wheat from Islamabad to Gilgit-Baltistan in the last three years, documents available with The News claim.
> 
> The Audit and Inspection Report on the Accounts of Directorate Civil Supplies and Transport, Northern Areas, Gilgit (Now Gilgit Baltistan) for the year 2006 to 2009 shows that the directorate, which was working under the Kashmir and Northern Areas Division, has caused a loss of Rs 2,595,347,026 to the national exchequer under the domain of less recovery of sale price.
> 
> Para 04 of the audit report says: As per provisions of para-26 GFR, it is the responsibility of every controlling officer to see that all sums due to government are regularly and promptly assessed realised and credited in the government account. As per Economic Coordination Committee (ECC) decision dated 17/04/2002 and subsequent clarification by Finance Division, the cost of transportation of wheat and handling charges are to be borne by government. During the scrutiny of record of Directorate of Civil Supplies and Transport, Gilgit, it was observed that the management had not passed on even the purchased cost fully to the purchaser, which resulted into loss to the govt.
> 
> For 2006-07, some 108,096.204 metric tonnes wheat was transported from Islamabad to Gilgit Baltistan. The purchase price of this wheat was Rs 12,331/M tonnes while it was sold for Rs 8,086/M tonnes, thus, causing a loss of Rs 437,653,645 to the national kitty in 2006-07. The next year 120,003.466 M Tonnes wheat was transported to Gilgit-Baltistan and was sold for Rs 8,072/M tonnes while its purchase price was Rs 13,522/M tonnes. This year, the government had to bear a loss of Rs 654,018,889. In 2008-09, some 136,511.529 M tonnes of wheat were transported to the Northern Areas and was sold for
> 
> Rs 8,087/m tonne while its purchasing price was Rs 19,102/M tonne, hence causing a loss of Rs 1,503,674,492.
> 
> It was a serious violation to the provisions of GFR and ECC decision on the subject. Audit proposes that responsibility of loss may be fixed and amount recovered from defaulters or position may be clarified to audit or otherwise.
> 
> The department, in its reply, has mentioned that the ECC and the cabinet during their meetings dated 28-03-2000 and 19-04-2000 had decided that the current issue price of wheat to consumers of NA was maintained.
> 
> The auditor had replied to the department that the reply was not correct as it was clarified by the Finance Division and subsidy will be only in the transportation charges. Further, the issue price for every next year was issued with the approval of ECC.
> 
> Moreover the audit report also points out that an extra amount of Rs 10.4 million was paid to NATCO, a corporate organization, and Rs 4.5 million to different contractors on account of escalation on transpiration charges against the rules. NATCO was also paid Rs 53.89 million extra in contradiction to contract agreement.



not good but it ill be ok inshallah


----------



## ameer219

*Pakistan, GCC close to signing Free Trade Agreement*

By Tanveer Ahmed 

KARACHI: Pakistan and Gulf Cooperation Council (GCC) are about to sign Free Trade Agreement (FTA) as the consolidated draft incorporating the version of both the governments is almost in the final stage.

Talks of signing of FTA between Pakistan and GCC have been making the rounds for the last many years, however, both sides have now reached at some solid and concrete work to move ahead. 

The third round of negotiations on FTA between Pakistan and GCC is also scheduled in the next month, which according to reliable sources would be the final one to sign FTA. Sources said FTA between Pakistan and the GCC would be comprehensive in nature covering the overall economic relations between the two sides.

Pakistan is negotiating with the GCC on a framework of FTA for the last four years after the former Prime Minister Shaukat Aziz had directed the Commerce Ministry to enter into a pact with Arab countries, sources privy with the development told Daily Times.

The agreement, sources hoped will provide an opportunity to Pakistani exporters to tap the demand for goods in the GCC countries under the reduced tariff in the first phase and without tariff in the long term. 

The FTA will help abolish or reduce the existing five percent import duty imposed in the GCC countries, which will ultimately help reduce prices of Pakistani products in the region.

Pakistan has already signed FTAs with Sri Lanka, China and Malaysia, besides South Asia Free Trade Agreement. At present, Pakistan is importing raw materials, semi-finished goods and oil from the GCC countries and the FTA will reduce the cost of these imports. 

The country wants to enhance trade ties with the Gulf countries and after signing of this agreement, Pakistans exports will show a substantial growth, sources hoped.

Sources said that the continuous issues between Pakistan and GCC nations are related to agriculture products, which hampered the export growth of these products from Pakistan. 

Pakistan was expected to sign FTA with the GCC countries in 2007, but was unable to finalise it due to some procedural delays. The FTA between Pakistan and the GCC would be comprehensive in nature, covering the overall economic relations between the contracting states, including the UAE, Saudi Arabia, Qatar, Bahrain, Oman and Kuwait. 

Bilateral trade volume between Pakistan and the GCC states comes around average $4.54.7 billion.


Daily Times - Leading News Resource of Pakistan


----------



## ameer219

*17% growth in remittances good: ICCI*

ISLAMABAD: President Islamabad Chamber of Commerce Zahid Maqbool said the country has witnessed an impressive growth of more than 17 percent in remittances, which have reached to about $5.79 billion during July-Feb 2010 and the government should take measures to channelise these remittances towards the long-term investment for achieving better results for the country. He said Small & Medium Entrepreneur (SME) sector is the engine of growth for Pakistan and one good option for the government is to motivate the returning migrants to set up small and medium size businesses, which will help in boosting SME sector. For this purpose, the government should provide them fiscal incentives like tax breaks and other concessions. staff report

Daily Times - Leading News Resource of Pakistan


----------



## ameer219

*Karachi stocks gain 53 points due to stability on political front*


KARACHI: The Karachi stock market continued to remain under the bullish spell on the last trading day of the week Friday on support of prevailing stability in the country on the political front, which has vastly helped improve confidence of investors. 

The Karachi Stock Exchange (KSE) 100-share index gained 52.89 points or 0.50 percent to close at 10,586.46 points as compared to the previous sessions 10,533.57 points. The KSE 30-share index closed at 10,852.32 points with a rise of 51.96 points. The KMI 30 closed at 15,994.38 points with a surge of 86.21 points. 

Analysts said that the market opened on a positive note and this trend continued dominating the market proceedings throughout the trading session. Improved volumes were traded during the session reflecting active participation of investors. 

The market turnover went up by 0.97 percent and traded 247.67 million shares as compared with the previous sessions 245.29 million shares. The overall market capitalisation was up by 0.43 percent and traded Rs 2.993 trillion as against Rs 2.980 trillion of the previous session. Out of total 395 companies, 186 closed in the positive zone, 197 in negative and 12 remained unchanged. 

Lotte Pakistan and Silkbank remained unbeaten in the volume leaders list, said Topline Sec analyst Frahan Seth. Furthermore, better results announced by Azgard Nine triggered heavy activity in the scrip. Bullish activity continued in oil and gas, telecom and bank sectors ahead of the quarter end result announcements, said Shahzad Chamdia Sec senior analyst Ahsan Mehanti. Continuing foreign interest, strong rupee value and expectations of early release of $1.2 billion International Monetary Fund tranche for Pakistan support played a catalyst role in the positive activity.

The KSE 100-share index opened in the green zone with a gain of 26.46 points and at the end of the day closed at 10,586.46 points with a rise of 52.89 points. Lotte Pakistan was the volume leader with 22.34 million shares as it closed at Rs 12.59 after opening at Rs 12.80, shedding 21 paisas. Silkbank Ltd traded 20.00 million shares as it closed at Rs 3.92 from its opening at Rs 3.89, gaining three paisas. staff report

Daily Times - Leading News Resource of Pakistan


----------



## ameer219

*Locally produced goods: free trade zone facilities to be offered, says Zardari *

ISLAMABAD (April 10 2010): President Asif Ali Zardari on Friday said Pakistan would offer free trade zone facilities for locally produced goods for export to the regional markets and a one-window facility for the investors in Pakistan.

Speaking at a dinner hosted in honour of LCCI here at here at the Aiwan-e-Sadr, the President said Pakistan would provide a tax-free regime to goods produced in Pakistan for export to the regional markets and added that such trade free zones will also have dedicated power facilities.

He said the one-window facility would also overcome bureaucratic delays and help those who wish to invest in the country. "We also have adopted a policy of public-private partnership and offer same incentives and facilities to local and foreign entrepreneurs," he added. The President said Pakistan's ports were closer to some markets in China and India from even those countries' own ports. He said the country has a strategic location that enables it to serve the market of over two billion people in China, India and Central Asia.

"Our armed forces, police, para-military forces and the citizens have made huge sacrifices," the President said and added "We salute their heroism and courage." "The war against militancy has cost us over 35 billion dollars that is why the government had to curtail its Public Sector Development Programme," he maintained.

He said the cut in the development programme and infrastructure projects has put great pressure on the business community and their input costs have increased substantially. He said the principal reason for decline in export earnings was due to the country increasingly becoming non-competitive, adding that due to on-going fight against militants, international buyers, entrepreneurs and technicians were shying away from coming to Pakistan.

He said though the international freight charges have gone down but Pakistan freight forwarders charge higher overheads due to risk of terror attacks and the shipping companies have introduced a war risk surcharge, to cover the high insurance cost.

He said in crease in the level of poverty has implications both on Pakistan and the international community and that is why Pakistan has been asking for greater market access. He said Pakistan immediately needs aid and pointed that consequences of delaying it would be serious. "We want trade, not aid," he said, adding that aid was welcome but trade was more sustainable as it helps integrate people and cultures across borders.

He said it was time for the international community to think of ways to compensate the countries most adversely impacted by the war on terror by making some allowance to them for market access. The President also noted with satisfaction that the President Lahore Chamber of Commerce was holding Ambassadors Conference in Gilgit-Baltistan in May this year to highlight the business and investment potential of that area.

"With the political reforms recently announced in Gilgit-Baltistan I am confident that this potential will increase manifold. I am also pleased that a fashion show has been planned to be held in Paris," he added. He said the fashion show will not only help project Pakistan's textile and garments industry but also promote the soft image of the country and the Government will extend full support in this regard.

The President complimented the LCCI and its President Zafar Iqbal Chaudhry for the initiative to bring the business community together and said the practice would continue. The dinner was attended by Prime Minister Yousuf Raza Gilani, Minister for Foreign Affairs Shah Mahmood Qureshi and members of the business community and ambassadors.-PR


Copyright Business Recorder, 2010
Business Recorder [Pakistan's First Financial Daily]

Hey, Zardari did something good for once!


----------



## ameer219

*ICCI chief for incentives to boost remittances*

ISLAMABAD - Pakistan has witnessed an impressive growth of more than 17 percent in remittances, which reached $5.79 billion figure during the July-Feb period of the current fiscal year, and the government should take measures to channelise these remittances towards the long-term investment.
Zahid Maqbool, President, ICCI, said this while chairing a meeting of businessmen here.
He said that channeling the flow of remittances towards investment sector would contribute towards ensuring sustained growth of the economy. 
He said that the SME sector is the engine of growth for Pakistan and one good option for the government is to motivate the returning migrants to set up small and medium size businesses, which will help in boosting SME sector. For this purpose, the government should offer them fiscal incentives like tax breaks and other concessions. 
He called upon the bankers to become more proactive and increase the speed of remittance transactions so that overseas Pakistanis could feel encouraged to send their money through official banking channels. He said such an approach would help develop the financial sector of the economy and contribute to the stability of macroeconomic fundamentals of the country. He said that Pakistan experienced a sharp fall in the net inflow of foreign investments during the July-Feb FY2010 because inflow in the first eight months of the current fiscal year fell to $1.024b as compared with $1.89b in the corresponding period of last financial year. He said that promotion of remittances through official routes and channeling these to long-term investments could sufficiently compensate Pakistan for big decline in the FDI.

ICCI chief for incentives to boost remittances | Pakistan | News | Newspaper | Daily | English | Online


----------

