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Sunday, July 23, 2006

LAHORE: A high-profile delegation of Australian information technology entrepreneurs is visiting Pakistan soon to explore business opportunities in the IT sector.

Zia Qureshi, Chairman of Business Catalyst International, told a group of newsmen during his visit to the NetSol Technologies.

Mr Qureshi called on Salim Ghauri, Chief Executive Officer of NetSol Technologies and Chairman of the Corporate Affairs Computer Society of Pakistan, and shared his ideas on uplifting the IT sector in Pakistan.

Mr Qureshi is on a short visit to Pakistan to assist the government of Pakistan and the IT sector in having its due share in the world IT business. His visit would be followed by a high-powered delegation from Australia soon.

Speaking on the occasion, Mr Ghauri said Mr Qureshi is a known IT consultant worldwide and Pakistan is proud of individuals like him. He said the NetSol Technologies has assured Mr Qureshi of full support for the implementation of his innovative ideas and expressed the hope that Pakistan would soon take the desired quantum jump in the field of IT.

Mr Qureshi pointed out that the aim of his visit is to explore the ideas as how Pakistan’s IT sector can be developed to ensure substantial export revenue. An effort is being made to turn Pakistan’s cottage IT industry into a big corporate environment to enable it to compete in the international market. Collaboration between the public and private sectors can ensure the desired results, he added.

He said NetSol Technologies is known as a company that possess delivering capability and such companies may create miracles in country’s exports if proper government support is ensured. This would be a win-win situation for all the stakeholders, he added.
 
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Sunday, July 23, 2006

ISLAMABAD: Saleem Saifullah Khan, Minister for Inter-Provincial Coordination, has said that Pakistan can export mangoes worth $400 million every year by ensuring international standards and improving methods of production, packaging and marketing skills.

He was speaking as chief guest at the National Mangos and Summer Fruits Expo 2006 being held here from July 20 to 22. The expo has been arranged by the Export Promotion Bureau and the Horticulture Development and Export Board.

He said that challenges of World Trade Organization's regime, international food standards and food safety measures are required for enhancing exports of our fruits and vegetables.

He said that nature has gifted our country with all four seasons and best quality fruits and now it is up to us to increase their production and enhance their exports for the benefit of the country. He emphasized the need for better coordination among the chain, growers, processors, researchers, scientists, exporters, trade officials for promotion of exports of mango to all the destinations of the world. He said that role of ministry of commerce and the Export Promotion Bureau is of prime importance in enhancing mango exports as well as guiding the exporters and growers on latest research and export markets.

He disclosed that in the last federal cabinet meeting Prime Minister Shaukat Aziz also emphasized the need for promotion of exports of fruits, especially of mangoes through facilitation measures.

Earlier Saleen Ranjha, EPB Director, said that Pakistan is the third largest exporter and fifth largets grower of mangos in the world. Exports of mangos are at present $40 million and the ministry of commerce and the EPB are struggling hard to enhance this level to the maximum in the minimum possible time. He said that Afghanistan, Central Asia, Iran, China, Europe and Gulf states are the new markets for our mangos exports. The government has allowed Rs 25 million freight subsidy on the export of mangoes through air and sea. Exporters can avail of this facility up to Oct 15 for enhancing exports of mangoes.

The minister also distributed awards among the participants of the expo. The best exporter award was given to M A Links Multan, and second best exporter award was given to Imtiaz Enterprises Karachi.

Awards in maximum varieties were given to Faiz-e-Aam Nurseries Multan, Malik Brothers Multan and the Horticulture Development and Export Board. Awards in the category of best stalls were given to Samza Fruit Stall, Sohail Brothers and Company Islamabad, and Shezan International. Improved varieties awards were received by Bukhari Fruit Farms Multan, Chaudhry Shehzad Fruit Farms Renala Khurd and Hamid International Multan. sajid chaudhry
 
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KARACHI, July 22: While there is a complete consensus among the economists and the businessmen on the fact that Pakistan’s rupee exchange parity is overvalued, there is sharp difference of opinion when it comes to issue of reviewing, readjusting or devaluing the national currency.

Almost all businessmen and economists are convinced that the rupee parity is overvalued by at least 10pc that is causing stress on the external sector. While a few businessmen and economists consider a devaluation of 10pc in one-go as the “only right recipe” at this moment, there are others, who believe that this devaluation should be gradual and measured. But there are many who consider any idea of devaluation a recipe for destabilisation of whole system as it will set in motion a new wave of unprecedented inflationary wave.

“With devaluation, there is a need for other supporting steps by the government particularly to rein in mounting demand and growing consumerism that is showing no signs of respite,” is one of such ideas articulated in relaxed moments after sunset in an informal businessmen gathering.

Even in their relaxed moments after sunset, businessmen are unable to shed off the pressures that are coming from the implications of an unprecedented trade imbalance and a fiscal deficit in 2005-06. For the current fiscal year there are doubts if government would be able to mobilise resources indicated in the 2006-07 budget and contain expenditures in manageable limits.

“Exporters have been consistently demanding a realistic readjustment of the rupee parity,” Aziz Memon, a well-known readymade garment businessman, said while pleading a case for devaluation. Memon had been the Chairman of Textile Export Quota Management Directorate till end of 2004 and is said to have invested heavily in his business to keep his presence felt in the EU and USA markets after phasing out of textile export quota system.

Not ready to quantify the devaluation of the rupee, Memon insisted on a number of measures by the government that should cut the production cost down and enable the exporters to remain competitive in a market where a full fledged cut-throat price war was going on. He said that value added sector needed more support than others.

“I do not support devaluation,” Iqbal Ibrahim, owner of a giant integrated textile mill in Karachi remarked. “Whatever benefit we will get from devaluation, we will be forced to pass on these to our buyers,” he said. He conceded that Pakistan was getting only a residual share in textile exports to the EU and USA and was trailing behind India and China.

Mr Iqbal was of the view that rising imports manifested growing economy. “You need more energy, more machines and parts and raw material when your economy is growing,” he said. His suggestion was that the government should take steps to reduce production cost and the rest depend on the entrepreneurs. The businessmen should improve their management, production techniques, marketing and motivate their management team to respond to fast changing demands.

Majyd Aziz, a readymade garment dealer with a brand name in domestic market, was of the view that the government would not go for devaluation as “it is an election or near election year”. Devaluation of rupee, he believes, will increase import bill, push up debt servicing cost and increase the debt burden. Now elections are not too far off, the government will take easy route of subsidies and imports rather than a full-scale surgery of the economic system that devaluation will demand.

Akbar Zaidi, a noted economist however, is all for devaluation. In last seven years, exports increased by almost 100pc from $8.2bn in 1999-2000 to about $17bn in 2005-06. Imports increased by more than three times to over $28bn in 2005-06 from about $9.5bn in 1999-2000. The trade imbalance in last seven years has swelled by more than seven times from $1.4bn in 1999-2000 to more than $11bn in 2005-06.

Devaluation, Mr Zaidi believes, will be a deterrent rather than pushing up imports because it will make import an expensive business.

Asad Saeed, another noted economist, however, believes that Pakistan’s exports and imports are inelastic and are not affected by the devaluation. In the past too, devaluation did not bring any big improvement in the exports.

While opinions differ on devaluation and strategies for increasing exports there is a virtual consensus that Pakistan does not have much to offer as export surplus for the world market except textiles and that too in low value products. In last 60 years only one Pakistani exporter has ventured into brand name product who is marketing it in Far East through his outlet. “Pakistan business houses do work for international houses and departmental stores but lack enough skill and initiative to go for launching their own brand products in the export market,” said a top textile leader, adding that launching of a brand product in USA and EU cost anywhere from $20 to $25 million.

While individual businessmen and economists have conflicting views on devaluation issue, the State Bank and a reputed research institution Social Policy and Development Centre (SPDC) convey directly and in guarded language their reservations on exchange parity of the rupee. “The inflation differential between Pakistan and its trading partners has made the relative price of Pakistani goods — or the Real Effective Exchange Rate (REER) — 10pc higher,” observes the annual review report SPDC for the fiscal year 2005-06. It points out that since late 2004, the Pakistani rupee has depreciated only very modestly by a total of just one per cent. According to State Bank of Pakistan’s third quarterly report for 2005-06 released recently the rupee depreciated only 0.88 per cent against US dollar during July to May to Rs60.22.

Pakistan’s export performance in 2005-06 is not unimpressive but the imports have outgrown the expectations and projections of the government planners. The trade imbalance of more than $11bn plus about $5bn gap in services has been met largely from remittances, aid inflows and privatisation proceeds during 2005-06. “However, there is a risk of the sudden slippage of these flows in the future. This is specially so in the current environment of lower global appetite for risk, which is leading to withdrawal of assets from the emerging countries,” warns SPDC annual review report.
 
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KARACHI, July 21: A total of 20 centres fully equipped to check the vehicles polluting environment would be set up in Karachi by a Malaysian firm at a cost of $500 million.

This was stated by Adviser to the CM on Environment Noman Saigal, while speaking at a seminar on ‘Preventing Environmental Degradation’ here on Friday. The seminar was organised by the Helpline Trust.

The adviser said that transport vehicles were responsible for about 75 per cent of the pollution in Karachi. Lack of resources, including financial and administrative, was the main hurdle in checking spread of pollution, he said, adding he felt that 30 per cent of the health budget should be allocated for improvement of environment.

Mahmood Akhtar Cheema of the IUCN-World Conservation Union, said that there were about 1.5 million vehicles on city roads emitting smoke which happened to be 25 times more than the average vehicular emission in other major cities of developed countries.

He said 40 per cent of urban population faced health problems due to the rising pollution.

Justice (r) Shaiq Usmani said despite various law reforms, like the Pakistan Environmental Protection Council, Environment Protection Orders, etc., nothing better could be seen in respect of environment.

Ronald deSouza of NGO Shehri, Ms Marcia A. Grant, of the Aga Khan University, Ghayasuddin Ahmed, CEO General Trading, and Ms Nargis Alavi, Principal of the Habib Girls Public School, said that air and water pollution levels in Karachi had crossed international environment quality levels. She pointed out that the vast slums, overflowing drains, broken roads, unchecked crime, chaotic traffic and unbearable air and noise pollution had devastated the city’s environment.

The major causes of pollution are dust, industry, burning of solid waste and smoke-emitting vehicles, especially the two-stroke vehicles, diesel trucks, and buses. Use of low quality fuel in such vehicles aggravate the situation further.

Experts were of the view that air pollution through vehicular emission could be contained at different levels by installing pollution control devices and switching over to refined fuel and vehicles with modified design.

They suggested that registration of old buses and two stroke rickshaws and issuance of route permits to smoke-emitting vehicles be banned at the earliest. They called for the introduction of four-stroke rickshaws using CNG.

Karachi needs integrated policies and approach for sustainable environmental development, they said, stressing on enactment of laws and their effective implementation to check further damage to environment in the city.
 
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27 projects valued over Rs30 billion approved ISLAMABAD: The Central Development Working Party (CDWP) meeting under the aegis of the Planning Commission here approved 27 projects worth over Rs30 billion.

The 27 projects approved in the meeting presided over by the Deputy Chairman Planning Commission included those related to higher education, education, health, transportation, communication, water, power, energy, physical planning and housing projects.

Azad Jammu and Kashmir’s 3.2- megawatt hydropower installation and the construction of Rathwa Haryam Bridge on Mirpur road were also approved.

Sheikh Medical Complex in Lahore would also be upgraded with an expansion costing Rs20 million.
 
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Prime Minister orders availability of oil and gas at subsidised rates

ISLAMABAD (July 23 2006): Underlining the importance of energy security for the country and for growth and development, Prime Minister Shaukat Aziz on Saturday directed the Petroleum ministry to take steps to ensure availability of sustainable supply of oil and natural gas at affordable prices.

He made these remarks while chairing a meeting to review the goals and target of Petroleum and Natural Resources Ministry, here at the Prime Minister House.

The Prime Minister also asked the ministry to expedite the development of abundant natural resources such as coal and minerals in order to meet the energy requirements of the country.

He said ministry of inter-provincial co-ordination should also be involved in the exercise. Prime Minister Aziz asked the ministry to undertake intensive exploration of gas and focus on the setting up of coastal oil refinery, Thar coal project, and import of LNG and gas.

The Prime Minister said ministry should expedite work on the Thar coal project. He agreed to a proposal of the ministry to unbundle the project by separating mining and power generation.

Secretary petroleum in his presentation said the ministry has adopted an integrated approach for promoting exploration and fast track development of oil, natural gas and other natural resources.

It is working to deregulate, liberalise and privatise oil, gas and mineral sectors through structural reforms, to attract private investment.

The Prime Minister was informed that 60 new CNG stations have been set up in the country, gas allocation and management policy has been formulated and got approved from the cabinet.

Cabinet approval has been obtained for transfer of regulatory oil functions including pricing from MPNR to Ogra. The meeting was informed that the country has achieved observer status in Energy Charter Treaty (ECT).

The meeting was attended among others by Minister for Petroleum & Natural Resources Amanullah Jadoon, Minister of State for Petroleum and Natural Resources Naseer Khan Mengal and senior officials.
 
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Oil and gas firms to submit monthly reports to sales tax department
ISLAMABAD (July 23 2006): All petroleum exploration and production companies would have to submit details of production, supplies and purchases and a separate summary on purchases/sales to the Sales Tax Department on monthly basis.

The CBR has issued SRO 751(I)/2006 for petroleum exploration and production companies to submit the statements, as stipulated in SRO 543(I)/2006 and SRO 559(I)/2006 pertaining to a tax period, by 25th of the following month.

These companies would submit details about purchase invoices reflecting the number of invoices received and sales tax involved. They would also submit the details on 'debit and credit notes' and other details given in the statement of SRO 559(I)/2006.

It has been made mandatory for petroleum exploration and production companies to submit quantity of the taxable items produced/supplied and cleared under SRO. 543(I)/2006.

DATE FOR FILING OF TAX RETURNS: According to another SRO, No 749(I)/2006, 25th day of the month has been fixed as due date for furnishing a return under Federal Excise Act, 2005, by gas producing companies for clearance of natural gas and liquefied petroleum gas produced during the preceding month.

The existing SRO 88(I)/2002 prescribes 25th of a month as due date for sales tax returns. Now, the monthly return for both sales tax and federal excise is to be filed on 25th of a month, enabling the taxpayers to file the combined return for both taxes.

Another SRO, No 750(I)/2006, provides that payment of federal excise duty (FED) is to be made by the 25th of a month for natural gas and liquefied petroleum gas, whereas previously the same was to be made on the 30th of each month.
 
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Shaukat to be briefed on PCCC revamping

ISLAMABAD (July 23 2006): The Ministry of Food, Agriculture and Livestock (Minfal) would give presentation to the prime minister on restructuring plan of Pakistan Central Cotton Committee (PCCC) and cotton R&D Framework on July 31. The ministry would also give briefing on the overall cotton situation in the country, official sources said on Saturday.

The federal government has earmarked Rs 363 million for the up-gradation of the Cotton Research Institute, Multan, as international institute allocating Rs 30 million for the year 2006-07.

About the restructuring of the PCCC, the Minfal and Federal Industries, Production and Special Initiatives Minister Jehangir Khan Tareen are at logger heads to appoint PCCC head, as the latter wanted a private person from the sector to head the PCCC but the Minfal is opposing the move, the sources added.

Officials in the Minfal are of the view that the appointment of the PCCC head from the private sector would create mess in the institution, as some of the breeding lines of cotton are at the final stage and may be passed on to the private seed companies in contravention of the rules, as it happened in the past.

About the cotton research and development framework, it would be like an endowment fund, which would be utilised for cotton research and development activities, the sources said.

"We are already using cess levy for research and development of the cotton but this R&D will also be used for bringing improvement in the cotton production", they added. Minfal would also brief the prime minister about the estimated production, sowing area, cotton export and export destinations, sources said.

It would also hold its preparatory meeting to finalise the briefing on July 27 at the ministry in the chair of Federal Food, Agriculture and Livestock Minister Sikandar Hayat Khan Bosan.
 
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Tax practitioners will be allowed to work as electronic intermediary


ISLAMABAD (July 23 2006): The government would allow tax practitioners, chartered accountant firms and cost and management accountant firms to work as 'electronic intermediary' for filing of sales tax e-returns, on behalf of registered persons. The CBR on Saturday issued 'Sales Tax e-Intermediaries Rules, 2006', to elaborate the procedure for filing of e-returns through an intermediary.

The board has already introduced e-filing of returns without visiting tax offices or banks. Now, that the Sales Tax Act, 1990, has been amended through Finance Act, 2006 to allow the taxpayers to file returns, or other documents, through e-intermediaries enabling the taxpayers who do not have related expertise to file returns electronically, the Board is in the process of finalising the rules for the appointment of e-intermediaries. A draft of these rules is being circulated for comments from taxpayers, consultants and the general public.

The draft has also been placed on CBR website www.cbr.gov.pk. The comments can be sent to Secretary (Sales Tax-L&P), CBR, Islamabad, or to the CBR helpline through email (helpline@cbr.gov.pk).

The draft of procedure has elaborated the criteria for the appointment of electronic intermediary. A person having sufficient professional experience in the field of providing taxation services would be eligible to become 'electronic intermediary'.

Sufficient physical and information technology infrastructure, minimum requirement: One office having area of 200 sq ft, in the name or title of e-intermediary; at least four computers having capability of processing information; at least two scanners of reasonable quality and internet connectivity with an approved licence.

Professional experience of 'e-intermediary' includes that the firm or sole proprietorship should be approved by the Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; a person or firm approved to practise as income tax practitioner; and any other person approved by the Board.

The administrator, on receipt of an application for appointment as an 'e-intermediary', shall verify that the applicant possesses suitable information technology, adequate knowledge, skills, infrastructure and professional experience required for successful transmission of data or return electronically and that the applicant has never been involved in a case of tax fraud or convicted by a court.

The administrator shall forward the application along with his recommendation to the Board for appointment of the applicant as 'e-intermediary'. Subsequently, the Board may appoint the applicant as an 'e-intermediary' and issue him a 'Unique User ID'. It is a unique identification number, or password, allotted by the Board to an 'e-intermediary' for his identification for electronically transmitting the return.

The Board is empowered to cancel the appointment of 'e-intermediary' in the following cases: The 'e-intermediary' has failed to comply with any of the conditions prescribed by the Board; acted in contravention of any of the provisions of the rules; failed to take adequate measures for security and confidentiality of the 'Unique User ID'; or convicted in an offence under the Sales Tax Act.

Under the rules, an 'e-intermediary' shall digitise the data of 'e-declaration', duly signed by the registered person and electronically transmit the same to the computerised system under the Sales Tax Special Procedure Rules, 2006, by using his 'Unique User ID'.

The computerised system shall issue a provisional acknowledgement to the 'e-intermediary' in token of the receipt and acceptance of the data transmitted. In case of non-acceptance of data by the computerised system at any stage, the 'e-intermediary' shall be informed to correct the data and resubmit the same.

The 'e-intermediary' user shall be responsible for accuracy of the 'e-declarations' transmitted by him. He would be responsible for security and confidentiality of the 'Unique User ID' allotted to him, and where any 'e-declaration' in transmission of that e-declaration shall be deemed to have been transmitted by the 'e-intermediary' to whom such 'Unique User ID' has been allotted.

The 'e-intermediary' shall retain the data relating to all e-declarations transmitted by him electronically on behalf of a registered person for a period of three years following the date of such declarations.

The concerned sales tax officer may examine records maintained by an 'e-intermediary', whether electronically or otherwise, in relation to a specific transaction or to verify adequacy or integrity if the system or media on which such records are created and stored.

PROCEDURE FOR THE REGISTERED PERSONS: A registered person desirous of furnishing e-declaration may authorise an 'e-intermediary', duly appointed by the Board, to furnish such e-declarations on his behalf, under intimation to the e-declaration administration having jurisdiction. Provided that the registered person may, at any time, revoke authorisation of an 'e-intermediary' under intimation to the e-declaration Administration having jurisdiction, and such revocation shall apply prospectively.
 
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SBP revises SLR and CRR for Islamic banking

KARACHI (July 23 2006): The State Bank of Pakistan (SBP) has raised the Cash Reserve Requirements (CRR) for Islamic Banks (IBs) and Islamic Banking Branches (IBBs) with effect from July 22 as under:

a) weekly average of 7 percent (subject to daily minimum of 4 percent) of total Demand Liabilities (including Time Deposits with tenor of less than 6 months); and

b) weekly average of 3 percent (subject to daily minimum of 1 percent) of total Time Liabilities (including Time Deposits with tenor of 6 months and above).

The decision to raise the CRR for IBs and IBBs has been taken following the raise in CRR for commercial banks.

However, IBs/IBBs would continue to meet the Statutory Liquidity Requirement (SLR) of 8 percent (excluding CRR) of their Time and Demand Liabilities in the prescribed manner as required under BSD Circular No 3 dated February 15, 2006.

All other instructions on the subject, including those issued under BSD Circular No 9 dated July 18, 2006, will remain unchanged.
 
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Government policies have open new vistas for investors: Prime Minister

ISLAMABAD (July 23 2006): Prime Minister Shaukat Aziz on Saturday said the policies of privatisation, liberalisation and deregulation have opened new vistas of opportunities for local and foreign investors, and urged the business community to avail these incentives.

Talking to a delegation of the Pakistan Business Council, which called on him at the Prime Minister's House on Saturday evening, he said the investors, while taking advantage of these policies, could expand their businesses and improve the productivity and competitiveness of their products in global terms.

The prime minister welcomed the formation of Pakistan Business Council, and hoped that it will develop itself into a credible outfit to impact the government policies in a positive manner to help the industrial sector grow.

He said that macro-economic stability, continuity and consistency of policies have restored the confidence of investors and helped the business flourish.

Shaukat Aziz said these policies have made Pakistan an investment-friendly place and during the last financial year a record Foreign Direct Investment (FDI) of $3.7 billion was received. The prime minister said the government is providing a level playing field to local and foreign investors.

He said foreign investors have shown keen interest in starting joint ventures with their Pakistan counterparts. He urged the Pakistani businessmen to join hands with foreign investors for expansion of business, import substitution and export enhancement.

The prime minister said transparency is the hallmark of government policies and all decisions are made in national interest, which has enhanced the credibility and stature of the government in the eyes of the international community. The privatisation process is on track and the government will continue to pursue the privatisation agenda, he added.

Giving an overview of the economy, Shaukat Aziz said the structural reform agenda of the government is one of the most broad-based comprehensive reform agenda ever undertaken by any government.

He said the country was able to achieve 6.4 percent growth rate during the last financial year despite the challenge caused by the surge in oil prices in the international market and the damages caused by the earthquake. The magnitude of the growth that Pakistan has achieved in last four years in a row has positioned Pakistan as one of the fastest growing economies of Asia, the prime minister said.

He said the size of the economy has doubled during the last about seven years and now it is $134 billion which is an achievement. The government is expecting better growth this year due to better performance in the agricultural sector and the enabling climate provided to industry, he added.

Shaukat Aziz said while the government is providing an enabling environment to the private sector, the business community should study the best international practices and prepare themselves to face the challenges of globalisation as well as to capture the opportunities offered by it and added that "you should learn to ride the tidal wave."

Razak Dawood, the head of the delegation, said that as the size of economy is growing fast there was a need for an organisation to provide positive inputs to the government policies.
 
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Rs 300.467 million allocated for Balochistan agriculture sector

QUETTA (July 23 2006): The government has allocated Rs 300.467 million for different schemes for development of agriculture sector in Balochistan, sources told newsmen here on Saturday.

Rs 42.168 million have been allocated for establishment of soil testing laboratories at district level in Balochistan, of which Rs 11.653 million have already been spent and the government has allocated Rs 1.5 million for the current fiscal year.

Rs 66.988 million have been allocated for strengthening of Balochistan Agriculture College Quetta, of which Rs 17.500 million have already been spent and the government has allocated Rs 18 million for the year 2006-07.

The sources said that Rs 11 million had been specified for promotion of cotton cultivation in Balochistan, of which 7.595 million have been spent and the government had allocated Rs 0.500 million for the current fiscal year.

Market squares are being constructed at Loralai, Qila Saifullah, Pishin, Lasbella, Panjgur and Khuzdar area at a total cost of Rs 100.057 million, of which three million rupees have been spent and the government has allocated Rs 20 million for the year 2006-07.

Apple processing plant at Kalat district is being constructed at a cost of three million rupees, of which two million rupees would be spent during this year. Dry land research centre is being constructed at a cost of Rs 44.344 million of which Rs 3.093 million have been spent and the government has allocated Rs two million for the current fiscal year.
 
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ISLAMABAD (updated on: July 24, 2006, 14:35 PST): Prime Minister Shaukat Aziz on Monday said the government was committed to make decentralisation and devolution process in local bodies a success and fully empowered to sustain economic growth.

Addressing the inaugural session of two-day symposium on 'Strengthening Decentralisation in Pakistan and the Commonwealth' here at a local hotel, the

Prime Minister said, the decentralisation of powers had been designed on the principles of grassroots democracy, community participation and equal distribution of resources.

The symposium has been organised by National Reconstruction Bureau in collaboration with Commonwealth Local Government Forum and Commonwealth

Secretariat, USAID, UNDP and DFID.

The Prime Minister said the objectives of decentralisation was to improve quality of life through fast-pace development and access to social and physical

capital as well as speedy justice while accounting for diversity and potential of regions and districts.

Shaukat Aziz appreciating the role of Nazims and other elected representatives of the Local Government urged them to work with dedication and commitment to

fulfil the requirements of the people.

He said "ballot box" is the powerful tool in the democratic system, through which they have been elected and added that those who will not work according to the expectations of the people could be replaced through

ballot box.

The Prime Minister said, "We are moving forward to create communities that are strong, dynamic and equipped for the challenges of change in the 21st

century and to build a new trust and faith in our people".

Referring to the importance of the Local Government system, the Prime Minister said about 90 per cent issues relating to health, education, basic needs

of life, roads, and security could be resolved at local level.

He said Pakistan today has some 85,000 councillors including 28,000 women who are active stakeholders in governance, development and service delivery, shifting the governance paradigm down to the Union Council level

and placing the people of the country in the centre stage of local development.

The Prime Minister said the devolution of political, administrative and financial authority to the representative and accountable local governments in

the country was a major historic landmark.

He said, "We take pride in successful transition to a democratic system tailored to our needs and environment at all tiers of government." He said every

country has to make its own way to implement the policies of decentralisation.

The Prime Minister said, "We as a nation are transitioning towards a more vibrant, progressive and developed Pakistan."

He said high economic growth had accelerated pace of development even in the farthest corner of the country.

He said it also included empowering women to become part of the dynamics of positive globalization and moving forward towards inclusive governance.

Referring to the challenges being faced by the government to reach the current level of decentralisation, the Prime Minister said, determination and political will made it happen.

He said completion and enforcement of basic legislative framework, two rounds of local government elections, institutionalisation of fiscal decentralisation and establishment of an equalisation transfer mechanism to minimise bureaucratic and

political influence were the main some of the measures taken by the government.

The Prime Minister said the government had given autonomy to mobilize local resources and constituted Citizen Community Boards to ensure community

participation in local development programmes
 
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KARACHI (July 24 2006): At least two local firms have received consent from the officials concerned for setting up edible oil refineries in Karachi, which would cost around $10 million, sources told Business Recorder on Sunday.

They said that an Islamabad-based party is also interested in establishing an edible oil refinery in Karachi, and its management is currently engaged in negotiations with the concerned officials. It is being anticipated that this party would succeed in getting its refinery in operation in the next six to eight months.

The two local parties, which are currently engaged in erecting their plants in Karachi, are Paracha Textile (ghee unit) and Hamza Edible Oil Refinery, Lahore. Of these, Paracha Textile (ghee unit) is being set up near Shershah (Site), while Hamza Edible Oil Refinery Lahore is busy in constructing its plant near Port Qasim.

Sources said that a Malaysian Group--Felda Group--has also established an edible oil refinery at Port Qasim, with production capacity of 800 tons per day.

"Felda's unit has been producing 800 tons edible oil per day for the last two months. However, its formal inauguration would be held on July 25," sources added.

"The other two units, each likely to cost around $5 million, are also almost ready to start production, but still may take about two months to start regular production," sources said.

According to sources, Hamza Edible Oil Refinery would have the capacity of 500 tons per day, while Paracha Textile Ghee unit would produce 300 tons edible oil per day.

These refineries are using crude palm oil imported from Malaysia and Indonesia.

About the technology used in these three edible oil refineries, sources said that they have procured the latest and world-class technology. "The technology which they (units) are using is 'Continuous Refinery' and has been imported from Sweden, in which the plants run smoothly without getting heated," sources said.

In this connection it would be pertinent to mention that currently the country's demand for edible oil is 1.5 million tons per month, which goes up to 3 million tons during Ramazan. Of this 3 million tons, around 0.6 million tons is supplied by some 128 small and big edible oil refineries across the country.
 
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NEW DELHI (July 24 2006): An ambitious deal to build a 2,775 kilometres gas pipeline between India and Iran via Pakistan (IPI) has run into trouble, the Iranian Foreign Minister was quoted as saying on Sunday.

Oil ministers from India, Iran and Pakistan are scheduled to meet in Tehran early next month to discuss a pricing dispute and ways to actually build the pipeline across the rugged terrain and through heavily militarised frontiers.

"It's a little bit complicated because of the changing of circumstances from the time when the contract and agreement was signed," Iranian Foreign Minister Manouchehr Mottaki told New Delhi Television news channel.

"I think both sides found out that there are some specific difficulties to implementing the project agreement as it is now."
 
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