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Ali.009

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There are more then 200 coutries in the world today. Out of those 200, there is a country which is :

- More then 10times less in size and landmass when compared with Russia, but its irrigation system is 3 times bigger then that of russia.
- World's 2nd largest producer of Chickpeas.
- World's 4th largest producer of Sugarcan, Cotton, Khobani
- World's 5th largest producer of Milk and Onions
- World's 6th largest producer of Dates
- World's 7th largest producer of Mangoes
- World's 8th largest producer of Rice
- World's 9th largest producer of wheat
- World's 10th largest producer of Oranges
- World 20th largest producer of whole farm outputs.
- Total wheat production is more then whole continent of Africa and equals to whole of South America
- Has largest reserves of GOLD
- Has 4th largest reserves of Coal
- Has 7th largest reserves of Copper
- Gas reserves are 6th largest in whole Asia
- World's largest user of CNG
- Is the world's 7th Atomic power.


Can you guess which country it is.


Answer- Pakistan
 
Can agriculture lead the way?
By Shahid Javed Burki


PAKISTAN does not have a trade policy that could help the country take advantage of the dynamism of the global trading system. The result is that the trade deficit continues to grow bringing the balance of payments under great stress.

It does not have any kind of industrial policy. One consequence is that it has no presence in the international system of production. By comparison several Indian companies from both the public and private sectors have become global players.

Pakistan has not framed a comprehensive agriculture policy for years. For a country with its kind of endowments, it should be a major participant in the international agricultural system. Instead, it is a player; it is an importer of the products that should be produced at home. In fact, Pakistan does not have an economic strategy.

At this point, the new leaders are too consumed with the political difficulties they face — some of these are of their own making — to worry about economic policymaking. Neglected, the economy continues to slip. Prices continue to increase, the stock market continues to plummet, the trade deficit continues to increase, and the fiscal deficit has touched a level never seen before in the country’s history.

The people are suffering. Load-shedding has increased to the point where small shops and small enterprises that employ tens of thousands of people have shut down, adding to the level of unemployment. The incidence of poverty no doubt is increasing. Soon the economy will arrive at a point where any kind of rescue effort will be difficult and expensive.

However, today I will not deal with policies that could begin to address the problems the country faces. I will come to the subject at some later date when the policymakers may be inclined to take some advice. Today I will address one part of what could be a strategy for the long-term management of the economy. I will discuss what the country needs to do in the sector of agriculture, long neglected by the state but comprising that part of the economic system that could bring the economy back on track.

In thinking about using the sector to revive the economy and getting it moving again, I will refer to the recent experiences of two Latin American countries that have used in very different ways the opportunities that have become available to large agricultural systems in the developing world. There is much Islamabad could learn from the experiences of Argentina and Brazil.

There are some interesting differences between the agricultural sectors of these two countries. Brazil’s is much larger. It has 173m acres of land under cultivation, about twice as much as Argentina. It has less water available for irrigation than Argentina in spite of the Amazon, one of the world’s largest rivers, that flows in the country’s north. A large part of Brazil is a desert while Argentina receives more rain.

The agricultural systems are different but the differences don’t necessarily reflect their different endowments. Argentine agriculture is focused on grain production; Brazil’s on the production of high value-added crops. Both are large players in the international market but in different ways. Argentina is the world’s second biggest exporter of corn, after the United States; Brazil is the world’s second or third largest exporter of beef, soybeans, orange juice, chicken, sugar and coffee.

Pakistan has traditionally managed its agriculture in much the same way as does Argentina; it should change track and go the Brazilian way. Why?

Experts believe that the world is seeing a paradigm shift in the prices of commodity prices. The recent increases in the prices of grains, oilseeds, fibre and other agricultural products are not because of temporary developments that will go away. They are not because of adverse weather in some part of globe and that has produced these changes. These have happened because of the permanent shift in demand for agricultural products.

Many parts of the developing world have seen sharp increases in consumer demand that have brought about a permanent move in agriculture’s terms of trade with other sectors. From now on fewer agricultural products can buy the same amount of non-agricultural goods. This is what economists mean by shifts in terms of trade.

Such shifts always produce windfall income gains for those who produce the favoured products. Public policy has two ways of dealing with this situation. One is to tax the agricultural producers and use the state to provide subsidies and other benefits to the consumers of agricultural items. This is what Argentina is doing. It has imposed a heavy tax on agricultural exports which has the effect of lowering the domestic price. Since the political base of the government is in the urban areas, this policy makes political sense but is disastrous for the country’s agricultural sector and for exports since agriculture is the main source of trade for the country.

The other way is to pass on price increases to agricuural producers and let them enjoy the windfall. Experience shows that farmers are not big spenders. They will plough back the increases in their incomes into agriculture — into the various parts of the agricultural system. This will result in increasing the productivity of land and labour, making the country more competitive in the international market. This is the policy option favoured by the Brazilian government.

In fact, the Brazilians have gone two steps further. They have provided a very large increase in the amount of credit available to agricultural producers at subsidised prices — with the state picking up in the budget the difference in the market and subsidised price of credit. This system will increase further the productivity of agriculture. It is clear which way Pakistan should go. It should go the Brazilian way
.

To make this approach Pakistan-specific, we need to adopt a number of policies and do so quickly so that the farming community can start to make its plans in time. The government should have international prices of traded agricultural commodities reflected in its procurement price. It should encourage the banking system to lend much more to the farming community, subsidising some parts of the capital that will get used for modernising agricultural practices.

It should enter into a partnership with the private sector to invest heavily in agricultural research. It should carefully study the water-pricing policy and charge farmers the real price of this precious commodity. And it should provide income support to the poor so that they can deal with price increases. Pakistan, in other words, needs a well thought-out farm policy
 
largest reserve of Gold? hard to believe, proof?
 
If I'm not mistaken, it may be a reference to Reko Deg in Balouchistan
 
Reko Diq is a giant copper and gold project in Chaghi, containing 12.3 million tons of copper and 20.9 million ounces of gold in inferred and indicated resources. The copper-gold deposits at Reko Diq are believed to be among the largest in the world.

The Reko Diq copper deposits which is in the neighbourhood of Saindak copper project, is four times larger in copper ore tonnage than Saindak. The most credible international surveys suggest that Reko Diq is one of the biggest undeveloped copper projects in the world with over 11 billion pounds of copper and nine million ounces of gold.
 
Regret to say that unless the data provided has a solid link, it can be nothing more than wishful thinking. I am no expert of world statistics but even I have heard of the incredible Rand gold mines ( Winterwatersrand to be exact) located in South Africa. These are the acknowledged largest gold mines in the world, where gold mining has been going since 1886. Per the data available on the internet, to date 247- million ounces of gold has already been extracted with another estimated 120- million ounces still remaining. Even the best estimates of the Reko dig are 20-million ounces and only God knows when we will see the start of actual production from this sources.

This is only 1/6 of an existing working mine. Therefore the claim of Pakistan having the largest Gold deposits in the world is definitely incorrect. This fact puts the accuracy of all the data mentioned in the post in doubt.

Besides, one must re-stress that it is incorrect to call Lakhra lignite deposits as coal deposits. When one thinks of coal, bituminous or anthracite coal comes to mind. Lignite has always been referred to as brown coal.

Pakistan is no doubt a resource rich country but when saddled with 170-million population, the figures quoted above, even if assumed correct, have very little significance and no cause for jumping with joy.

Most important resource of a country is "Human Resource"; it is here that Pakistan is found lacking. Why not look at Japan, a country with few natural resources, most of the country mountainous and prone to earthquakes and with huge population. However, they have one of the finest developed human resources in world. Dare we compare Pakistan with Japan?

If we could rightly claim that Pakistan has one of the finest educational institutions in the world or that we had one of highest percentage of scientists, doctors or technical graduates per 1000 of the population, I would be the first one to jump with joy and shout this achievement from the rooftop.
 
Regret to say that unless the data provided has a solid link, it can be nothing more than wishful thinking. I am no expert of world statistics but even I have heard of the incredible Rand gold mines ( Winterwatersrand to be exact) located in South Africa. These are the acknowledged largest gold mines in the world, where gold mining has been going since 1886. Per the data available on the internet, to date 247- million ounces of gold has already been extracted with another estimated 120- million ounces still remaining. Even the best estimates of the Reko dig are 20-million ounces and only God knows when we will see the start of actual production from this sources.

This is only 1/6 of an existing working mine. Therefore the claim of Pakistan having the largest Gold deposits in the world is definitely incorrect. This fact puts the accuracy of all the data mentioned in the post in doubt.

Besides, one must re-stress that it is incorrect to call Lakhra lignite deposits as coal deposits. When one thinks of coal, bituminous or anthracite coal comes to mind. Lignite has always been referred to as brown coal.

Pakistan is no doubt a resource rich country but when saddled with 170-million population, the figures quoted above, even if assumed correct, have very little significance and no cause for jumping with joy.

Most important resource of a country is "Human Resource"; it is here that Pakistan is found lacking. Why not look at Japan, a country with few natural resources, most of the country mountainous and prone to earthquakes and with huge population. However, they have one of the finest developed human resources in world. Dare we compare Pakistan with Japan?

If we could rightly claim that Pakistan has one of the finest educational institutions in the world or that we had one of highest percentage of scientists, doctors or technical graduates per 1000 of the population, I would be the first one to jump with joy and shout this achievement from the rooftop.


Kindly spend your time reading the 'Economy of Pakistan' from any encyclopedia. You will find all the stats written above, they arent brought down from moon.

Pakistan currently has one of the largest cohorts of young people in its history, with approximately 25 million people between the ages of 15 and 24. Thus making a suitable human workforce. Since you dont believe anything without a 'solid' link .. here http://www.popcouncil.org/pdfs/ayp0102.pdf
 
Caveat --- Note the author, you'll know the agenda


Requiem for Reko Diq

By Mir Mohammad Ali Talpur


REKO Diq, an ancient volcano in Chaghi, Balochistan, literally means sandy peak. This is something of a misnomer.

It should be called Tangav Diq, or gold peak, because below the sands, according to development expert Syed Fazl-e-Haider, lie “12.3 million tons of copper and 20.9 million ounces of gold.” There is a saying in Balochistan that a Baloch child may be without socks, but when he grows up every step he takes will be on gold. Reko Diq, Saindak, Sui all prove that the barefooted Baloch do tread on gold. That this wealth hasn’t benefited them isn’t accidental.

Since 1947, successive governments at the centre have pursued a policy of intimidation and coercion towards the Baloch. Most provincial governments have played the disgraceful role of legitimising and lending respectability to army operations, forced disappearances, extrajudicial killings, incarcerations and the acquisition of land. The goal has been to coerce the population into acquiescence so that exploitation can be conducted in a threat-free environment. Of late, much-publicised mega projects are actually depriving the Baloch of their resources and said to be adversely changing the demographic balance in the province.

Credible international surveys indicate the wealth of resources and suggest that the area is home to one of the biggest copper reserves in the world with over 11 billion pounds of copper and nine million ounces of gold. The Australian firm Tethyan which entered into a joint venture with the Balochistan government estimates an annual production of 200 to 500 million pounds of copper from the Reko Diq mining project. A large number of porphyry rocks are also known to exist.

The interests of the Australian company in Reko Diq and its neighbourhood were taken over by the Toronto-based Barrick Gold Corp and the Chilean Antofagasta Minerals. These companies were handed a very lucrative deal. The terms agreed upon show that there is more to the issue than meets the eye. Royalties were reduced from the initial four to two per cent. Terms for the provision of cost-free land for an airport and a 400 km Reko Diq-Gwadar road were accepted. An unjust clause is that a 25 per cent share will be paid to the Balochistan government but only after it invests 25 per cent in the project.

According to Rob Maguire of the Dominion paper, “Barrick is the foremost gold mining corporation in the world, with sales exceeding $2.6bn in 2005 and the largest reserves in the industry, at nearly 90 million ounces. They plan to mine gold under the Andean glaciers at Pascua Lama (Chile) and in order to process the ore there, Barrick will use 7,200 kg of cyanide and 10 million litres of water per day. Cyanide contamination of water resources can be devastating — cyanide concentrations as little as one microgram (one-millionth of a gram) per litre can be fatal to fish.” The people at Pascua Lama are resisting Barrick’s operations.

Mining uses sodium cyanide, arsenic and other chemicals which produce toxic by-products. According to Marcel Claude, vice-president of the international environmental group Oceana, “Gold mining dumps 79 tonnes of waste for every 28 grams of gold, and produces 96 per cent of the world’s arsenic emissions. On the same theme, Antonia Fortt, an environmental engineer, says that fears about cyanide are justified “because this chemical is used to separate the gold from the sterile material, rock and dust, and it comes mixed with it.” Health problems directly linked with arsenic exposure include cancer, deformation, miscarriage and underweight children.

Antofagasta’s net assets at the end of 2007 grew to almost $5bn. In December 2005 its release said: “Tethyan’s principal assets are a 75 per cent interest in the highly prospective Chagai [sic] Hills region of North West Pakistan known as Reko Diq, including the Tanjeel Mineral Resource. This mining district hosts significant copper-gold porphyry deposits as part of an extended copper-gold belt. Total indicated and inferred mineral resource estimates at these properties are 1,213 million tonnes with a copper grade of 0.58 [per cent] and a gold grade of 0.28 grams per tonne. Estimates include probable reserves at the Tanjeel of 128.8 million tonnes with a copper grade of 0.7 [per cent]”.

The firm’s chairman Jean-Paul Luksic said: “We will continue to focus on managing costs even amid higher copper prices and the cash retained will be used to achieve future profitable growth in projects such as Esperanza and Reko Diq, and on the potential for future exploration and acquisitions”.

Antofagasta is presently embroiled in a dispute with inhabitants near Chile’s largest copper mines, Los Pelambres, over water rights. Its new dam is cutting off valuable water supplies and poisoning them.

These predator corporations are bothered only about their hefty profits and they ride roughshod over all human, social and environmental concerns where they operate. They customarily disregard people and the environment in search of profit. They have outsourced services to Pakistani contractors such as Capital Drilling, Security 2000, Rak Mor Drilling, Zain Company and Zia and Brothers. In April 2008, Zain Company showed its brute force and terminated services of 40 drilling assistants and recruited novices and non-locals. The AZAT Foundation has tried to protect their rights, and on June 14, 2008 a well-attended demonstration was held outside the Quetta Press Club.

There are many advocates of such mega projects who claim that the Baloch have benefited from their trickle-down effect. Such logic reminds me of Ghalib’s Persian couplet.

He says:

Sharminda-e-nawazish-e gardoon na manda amm

Gar chaak dokht, jamma ba mazd-e-rafoo girraft.

(Should I acknowledge the favour of his darning of a tear?

If the very darner then robs me of the darned shirt I wear.)

These ruthless corporate predators along with conniving corrupt politicians and officials have scripted the requiem for Reko Diq. The people will end up poorer and the aquifers and the environment in general will be contaminated with cyanide, arsenic, etc with unremittingly grave consequences for the people.

Given the frenzied way in which the authorities, the politicians and predatory corporations are ravaging Balochistan’s precious resources, one can only wonder why the rulers in Islamabad are surprised, offended and annoyed when the resentment against such injustices results in insurgencies.


mmatalpur@gmail.com
 

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