Pakistan Economy - News & Updates - Archive

[Neo]

Wednesday, July 26, 2006

ISLAMABAD: Federal Minister for Food, Agriculture and Livestock Sikandar Hayat Khan Bosan has said public sector investment in the agriculture sector has increased from Rs one billion to Rs 12 billion and this has a direct correlation with poverty alleviation in the country.

Speaking at the concluding session of a two-day workshop on citrus research here on Tuesday, he said that the government was targeting an annual growth target of more than five percent in the agriculture sector.

Citrus cultivation has increased in Pakistan, particularly due to its famous variety of kinnow. It is grown on 184,000 hectares with the production of nearly 1,944,000 tons. Area under different varieties of citrus indicates that about 70 percent of the citrus is covered by kinnow followed by orange 13 percent and Musambi 12 percent. Punjab produces over 95 percent of the citrus, especially kinnow, because of favourable growing conditions.

Pakistan during the last season had a record export of about 250,000 tons of citrus to different South Asian countries and some Gulf states. The ministry of food and agriculture and livestock (MINFAL) has also signed memorandums of understanding with China and Iran for its export. The newly- emerging markets are Central Asian states and some other countries such as Ukraine and Russia.

The objective of the workshop, which was held under the auspices of Australia-Pakistan Agriculture Sector Linkages Programme (ASLP), was to strengthen the agriculture sector interaction between Australia and Pakistan’s commercial, academic and research institutions through joint activities and institutional links. The ASLP is of four years’ duration and draws on the Australian government and technical institutions’ capacities as well as commercial opportunities.

The workshop brought together researchers and stakeholders from Pakistan and Australia working in citrus research, extension and agri-business in order to build linkages by sharing and jointly evaluating results and experiences in citrus research and extension. The participants discussed future citrus research and development needs in partnership with relevant agencies for collaborative activities under the auspices of the ASLP and identified future capacity building and training needs in Pakistan citrus research, development and extension.

Mr Bosan said that agriculture sector which contributes 24 percent of the GDP plays an important role in the economic development of the country. He said the agriculture sector has demonstrated marked improvement during the last couple of years. Pakistan had a record cotton crop of 14.6 and 13 million bales besides a record 21.6 and 21.7 million tons of wheat crops in the last two years. Pakistan exported 3.6 million tons of rice amounting to 1.1 billion US dollars in the last fiscal.

In order to attain this level, our focus is not only on productivity enhancement of major crops but also on horticulture, which is an integral part of agriculture. He said Pakistan now focuses on cash crops and high-value agriculture. In the medium and long-term development framework, horticulture development has been identified as one of the key areas for income generation in rural areas. He said the real benefit would come with improved processing facilities and compliance with international standards.

Australian High Commissioner in Pakistan Ms Zorica McCarthy said that Australia wants to see Pakistan as a prosperous country in all sectors, including agriculture. She said the two countries enjoy good relations. She said Australian cooperation with Pakistan in the agriculture sector would enhance productivity and generate more employment opportunities in the rural areas. She said Australia would also facilitate Pakistan to exports its products.

The high commissioner said that the Australia announcement of offering 500 scholarships to Pakistani students in five years would further enhance relations between the two countries.

 

[Neo]

ISLAMABAD, July 25: Some ten million children were engaged in various kinds of labour, and the ever-increasing poverty was the main reason for this dismal state of affairs.

This was stated at a seminar on “Child Labour-The End of Innocence” organised by the Society for Human Rights and Prisoners Aid (SHARP)

Speakers challenged government’s poverty estimates and criticised it for funding figures.

They criticised the government for not following the national and international commitments and taking concrete steps to eliminate poverty, the route cause of forced labour.

Speaking on the occasion, Mr Saifullah Chaudhry of International Labour Organization (ILO) said, there was a pressing need to streamline the educational system according to the market’s requirements.

Presently the education system only provided work force for the formal economy, and a yawing gap of informal economy was being filled through untrained child labourers.

He called for the need of setting up more vocational training centres which could provide labour according to the present needs of the market.

Tahira Abdullah, a human rights activist, said that the number of child labourers was much higher than the government claimed. She said that government and international agencies did not include informal, seasonal and transitional workers into the figures and surveys.

She said that the existing laws totally failed to protect the rights of children and prevent the child labour.

She appreciated th role of ILO and UNICEF for their service towards combating child labour. She lamented that child Labour was not on the agenda of the government in its millennium development goals. Mr Bashir Tahir of Asian Development Bank stated that not only a large number of local children were engaged in the child labour but a considerable number of Afghan refugee children were also part of child labour.

He said that these children were not counted in the surveys and figures being refugees in the country. He said that exploitation starts when a person was forced to leave his place/ country and then she/he has endless miseries. He said that approximately 90 per cent of workers at brick kilns were Afghan refugees who were badly exploited by the owners.

Speakers stressed the role of government and the society to work together for combating this evil. Speakers suggested proper survey to find real facts and figures of child labours, control of population growth, utilisation of reasons for elimination of child labour, better facilities of education and proper and effective implementation of constitutional and legal instruments.

Earlier, Mr Syed Liaqat Banori Chairman (SHARP) welcomed the participants and highlighted the activities of his organization.

 

[Owais]

CBR proposal to probe remittances source rejected

ISLAMABAD (July 27 2006): The federal government has turned down a proposal of the Central Board of Revenue (CBR) to empower the income tax officials to probe the source of the foreign investment/remittances sent to Pakistan through normal banking channels.

CBR Member (Direct Taxes) Salman Nabi told the sub-committee of the Public Accounts Committee (PAC) on Wednesday that the Board tried to introduce a provision for demanding the source of foreign remittances in budget (2006-07), but the government retained the related provision of the Income Tax Ordinance, 2001.

The PAC members - Colonel Ghulam Rasul Sahi (Retd), MNA, and Maulana Abdul Ghafoor Haidri, MNA - had suggested that the income tax officials should probe the source of income of purchasers of new cars and luxurious bungalows to broaden the tax-base.

Salman Nabi explained that the law has imposed many restrictions on the income tax officials, who wanted to probe the source of investment. In 80 percent cases, the people generally submit that they are earning agriculture income, he said, adding other persons have declared that the house was purchased/constructed from the foreign remittances. No question could be asked about an income earned in the federally-administered tribal areas (Fata) and provincially-administered tribal areas (Pata).

He said if the tax officials try to probe the source of investment, the people managed to submit the relevant documents in the courts where we cannot raise any question due to limitations of the law. The people use the loopholes in the law to evade taxes, and even income tax officials were suspended who tried to investigate the investment sources, he added.

When the PAC members asked about the legal position of demanding status of the overseas Pakistanis sending remittances, he said it is not difficult to show a transaction through normal banking channels to whiten the concealed income. Obviously, the officials could not raise questions where evidence of foreign remittances through banking channels is submitted, he added.

When asked about the legal proceedings in cases where stay orders were expired in courts, Salman Nabi said the process of attachment of property and arrest has been elaborated in the recovery rules, but the department has to be very cautious while taking extreme measures against the taxpayers. In one case, the department had sold a mill in Rawalpindi at a cost of Rs 5 million. The owner had repeatedly contested that the mill was sold at a very lower price as compared to the market value.

If a person is arrested or his property is sold in a case and the court judgement is reversed, then how you can justify his imprisonment. Therefore, the department has to be very careful before taking such harsh measures against the taxpayers, he maintained.

NBP and SBP REVENUE REPORTING SYSTEM: The CBR chairman said the National Bank of Pakistan (NBP) and the State Bank of Pakistan (SBP) have started computerised revenue reporting system.

The banks issue the 'computerised receipts' to the taxpayers and give report on daily basis to the CBR through online computerised system. The old system of issuing manual receipts by the banks is a closed chapter.

LITIGATION: CBR Member (Legal) Mumtaz Ahmed Sheikh told the PAC that the Board had disposed of 78,000 cases against total 80,000 pending in the last two years. Around 2,000 pending cases, including 1,200 tax appeals and 800 cases on indirect tax side were all fresh. Out of total 1,510 cases pending at the level of Supreme Court, 1,198 have been decided, while verdict on the remaining 312 cases is expected in August-September. The data reveals that 3,800 appeals are pending with the Lahore High Court and 2,000 at the Sindh High Court.

The CBR chief informed the committee the massive reduction in litigation cases has helped the board reduce the total number of commissioners (appeals) from 34 to 16. Four more appeal commissioners are likely to be reduced within one to two months, he added.

DOCUMENATION and COLLECTION: The CBR chief admitted that the Board is facing problems in the documentation of the national economy. There is more potential to collect sales tax at the retail stage as compared to the existing collection, while the Board ultimately zero-rated leading sectors, which was against the basic principle of Value Added Tax (VAT).

He said the government is pursuing a policy of gradual reduction in tax rates. The corporate tax rates for the banking companies are 38 percent, private companies, 37 percent, and public companies 35 percent for the tax year 2006. The gradual reduction would result in a uniform 35 percent rate for all the three categories of companies from tax year 2007.

He said the GST rates of 15 percent, 18 percent, 20 percent and 23 percent were replaced with a single uniform rate of 15 percent. Massive tariff rationalisation was done on the customs side. Highest rates of customs duty were brought down from 150 percent to 25 percent with few exceptions, he added.

He said the role of the federal government in collection of taxes has remained predominant as compared to provinces. The ratio of indirect taxes in the total revenue collection is 69 percent, while the ratio of direct taxes is 31 percent, he added.

TAXES ON HOTELS: The PAC asked about exemption of taxes to small hotels and restaurants, the CBR chief said the hotels having annual turnover below the exemption threshold of Rs 5 million are exempted from sales tax. If the turnover of hotel is above the exemption threshold, it is liable to pay taxes, he added.

BENEFIT TO THE POOR PEOPLE: Responding to a query, he said that most of the food items and medicines were exempted from sales tax. Only processed food items are liable to tax excluding "Atta" which is not liable to tax even after processing, the CBR chief added.

 

[Owais]

FDI registers 131 percent increase

ISLAMABAD (July 27 2006): Foreign Direct Investment (FDI) in the country during 2005-06 soared by 131 percent to $3.521 billion as compared to $1.524 billion of 2004-05, and portfolio investment rose by 123 percent to $351.5 million against $157.6 million. However, withdrawal of capital from portfolio investment was on the rise, the State Bank of Pakistan (SBP) reported on Wednesday.

Therefore, on balance, total foreign private investment (FDI and portfolio investment) in the year increased by 131 percent to $3.872 billion from $1.67 billion of previous year. It is worth noting that the FDI swelled enormously at the cost of privatisation proceeds, which stood at $1.54 billion (43.7 percent of total FDI).

The central bank in its third quarterly report, released recently, also warned the government against surging portfolio investment because of its high volatile nature, as its sudden withdrawal not only depresses the stock prices but also reduces central bank's ability to maintain local currency value.

"The surge in portfolio investment is always seen with a concern due to the high degree of volatility attached with these flows since its sudden withdrawal depresses the stock prices", the State Bank report said.

The notable feature of current SBP data was that during the period under study foreign investors withdrew about $84 million from portfolio investment. However, USA was the only country, which invested about $303.8 million in portfolio investment.

Although US portfolio investment was a positive sign, yet there was an inherent danger that if it withdrew the volatile investment, at once, then the central bank would be in hot waters to manage currency value and stock prices.

The Bank in its report also expressed concern over the utilisation of privatisation proceeds for financing non-developmental items and its inclusion in Foreign Direct Investment (FDI), suggesting that the government should focus on non-privatisation FDI for bringing in new technology and market access to accelerate growth.

The break-up of investment by region shows that developed countries made total investment of $1.738 billion, including $1.455 billion FDI and $282 million portfolio investment, while the developing economies invested $1.996 billion ($1.924 billion FDI and $72.6 million portfolio investment).

Among the developed countries, western Europe made a total investment (FDI and portfolio) of $831.3 million and European Union, $396.5 million against $452 million and $294 million of previous fiscal year.

Besides, under unspecified head (investment by IFIs) was $138 million. This included FDI of $141.8 million while in portfolio it withdrew $3.8 million.

Among developing economies, Caribbean Islands invested $11.3 million in FDI and withdrew $9.3 million portfolio investment. Africa, including Libya, Egypt, Mauritius, South Africa and other African countries invested $93.2 million FDI and withdrew five million dollars portfolio investment.

Asian countries (West Asia, South, East and South East Asia) made total investment of $1.90 billion including $1.814 billion FDI and $85.7 million portfolio investment.

The break-up of investment further shows that United Arab Emirates (UAE) was the biggest investor in Pakistan totalling $1.487 billion with $1.424 billion FDI and $63.3 million portfolio investment, respectively.

United States was next with investment of $820.5 million, including FDI of $516.7 million and portfolio investment of 303.8 million dollars. However, in terms of direct investment, Saudi Arabia was third ($277.8 million) followed by Norway with $252.6 million, UK $244 million and Switzerland with 170.6 million dollars.

 

[Owais]

$500 million to be spent on local government capacity building in five years'

ISLAMABAD (July 27 2006): National Reconstruction Bureau (NRB) Member Inamul Haq has said that around $500 million would be spent on the capacity building of the local government in the next four to five years. He was addressing the Consultation Workshop on Poverty Reduction Strategy Paper (PRSP-II) on 'Governance' here on Wednesday.

The Additional Secretary External Finance, Ministry of Finance, Asif Bajwa, chaired the workshop on the final day of a three-day workshop. Inamul Haq said the capacity building of Nazims, Naib-Nazims, councillors, and all others involved in the local bodies would be enhanced to ensure better service delivery.

The Federal Cabinet had approved the establishment of 'Schools of Local Governance' in November 2002, he said, adding the local body representatives should have a clear picture of their authority, responsibility, and job description to play their effective role.

He said the capacity of TMAs would also be enhanced through new manuals and training of relevant Tehsil/Town officers and employees with the collaboration of the NRB and the World Bank.

He emphasised that the objectives of good governance can best be achieved by introducing pro-poor policies. To focus on the process through which the poor in the society have access to savings and use credit to initiate new small-scale economic ventures are a priority, he added.

Inamul Haq said the NRB has developed a model to improve relationship between financial institutions and the poor as 18 million people from the rural areas are expected to benefit from this. The main factors of governance, which must be focused upon, are predictability, accountability/transparency, participation of all stakeholders, and service delivery, he said.

Inamul Haq reiterated that if governance reforms, including devolution process, access to justice, and civil service reforms are implemented successfully, then economic growth and poverty alleviation goals would be comprehensively achieved.

He said that local government bodies system is an effective system and capable of addressing the community's issues in the best way. However, corruption at all levels be monitored and checked. This is one of the big challenges, he cautioned.

He said the local governments would make procurement from the allocated budget independently without consulting the federal government, and this would increase its efficiency.

The Citizen Community Boards (CCBs), which have gained popularity on account of public participation, have absorbed 600,000 people, who are engaged in the development activities under 25,000 CCBs. There is a need to revise and simplify the rules to facilitate CCBs taking care of any corruption, he maintained.

Inamul Haq stated that Pakistan has taken the first right step to development by identifying governance, and hoped that devolution process would work as an engine of growth. Referring to the Local Government Ordinance (LGO), 2001, he said it recognises the right of the citizens to obtain information about the working and performance of the local governments, which could be best achieved through information technology (IT), he noted.

In this regard, the NRB has introduced Narims Software that will be made functional shortly and meet all requirements of all district government officers, elected representatives and citizens. He, however, said that some classified information would not be made public.

Establishment Secretary Syed Tariq Ali Bokhari, a panellist, said there is a need to reform the civil service structure. The needs of the society have not been catered for 50 years. The people who were meant to serve the public never considered it as their priority. The reform process suffered with the rush of daily routine, he added.

Allaying apprehensions of the participants on various issues, Inam said the process of devolution should continue, as under the system, he remarked, the money is distributed to every corner of the country. He said that India acknowledging Pakistan's reformative process has shown great interest in the joint venture.

Replying to another question, he said the authority of DCOs is limited to police order and the law and order only. It is imperative to assign power to the Nazims if they are to be made effective, he added.

The workshop document said that National Construction Bureau is working on various issues like district service, civil service reforms, provincial restructuring, federal to provincial devolution, computerisation of record-of-rights, media and governance, CCBs, fiscal decentralisation and inter-governmental transfers, taxation, strengthening of institutions, enforcement of local and special laws, municipal management, capacity building, police rules, financial intermediation for poverty reduction, and would finalise them in two to three years.

In his concluding remarks, Asif Bajwa said that all the recommendations and views expressed by the participants would be incorporated in the PRSP-II document.

He showed his concern that human resource, which is the main driving force behind all the activities, is under paid, whereas commodities are available at the market rate, and this should be given due consideration to meet the goals, he added.

 

[Neo]

LAHORE (July 27 2006): Establishment of Sunder Industrial Estate, execution of mega projects like Ring Road, light transit rail and Lahore-Sialkot Motorway and improvement of physical infrastructure in the city will offer world class facilities to foreign investors in Lahore.

District Nazim Mian Amer Mahmood stated this while talking to Japanese ambassador to Pakistan Feiji A Oyima, who called on him, here on Wednesday. Amer apprised the visiting envoy that the feasibility report for Light Transit Rail project had been prepared and tenders would soon be invited for its execution from well-reputed parties.

Talking about investment opportunities in Lahore, he said that Lahore would welcome foreign investment for installation of water treatment plants. He told that Lahore had been a seat of learning throughout its history. Maximum incentives would be provided for Japan's investment in the field of higher education, especially in industrial management, and other areas pertaining to commerce and industry, he assured.

By virtue of peaceful law and order situation, Lahore is a safe city with regard to foreign investment. In view of its geographical location, it has full potential to become a hub of commercial activity in the region. With further improvement of bilateral relations with our eastern neighbour, India, Lahore will become a gateway of trade goods between East Asian and Central Asian countries, he maintained.

Expressing his gratitude for providing machinery worth Rs 780 million for rehabilitation of drainage system of Lahore, Amer hoped that Japan would continue to extend its generous co-operation for the development of city. He informed that this machinery had been utilised for de-silting the city drains and eradicating hurdles in smooth flow of storm water.

 

[Neo]

FAISALABAD (July 27 2006): Asian Development Bank's "Technical assistance completion report" for capacity building for capital market development and corporate governance in Pakistan has stated that the main outputs, required from the technical assistance, are delivered and the objectives envisaged are met.

According to report, the implementation agency, Securities and Exchange Commission of Pakistan (SECP), expressed its overall satisfaction with the work of the consultants and the management and the supervision of the technical assistance (TA) by ADB were also considered to be effective.

The key recommendations of the TA were instrumental in initiating a number of initiatives such as the policy reforms associated with the non-bank financial governance framework, reflecting the long-term nature of the TA's impact and its sustainability. Overall, the TA can be rated as successful, said the report.

To further the process of capital market reform supported earlier through loans the 1576-PAK (programme) and 1577-PAK (TA), the government of Pakistan requested the ADB for additional technical assistance focusing specifically on enhancing corporate governance standards.

This initiative was considered to be very timely as the capital market in Pakistan was plagued with the narrow investor base, poor governance, continued weak risk management, and shortcomings in the enforcement of capital market rules and regulations.

In light of the same, strong measures were necessary to enhance governance standards and increase market transparency. Important measures in this regard included incorporating laws to protect shareholders rights, effective redressal of grievances, establishing disclosure standards, and enhancing the professional skill sets and supervisory capacity of the regulator.

To address these issues in a comprehensive manner, the TA focused on improving governance standards, knowledge creation of international best practices and capacity building.

THE FOLLOWING WERE THE OBJECTIVES OF THE TA:

-- Assist in improving the efficiency of the capital market based on established governance standards by reviewing the existing system and recommending legal, regulatory, tax, institutional, and structural changes.

-- Advance stakeholders understanding of the dynamics of corporate governance through exposure to international best practices and knowledge sharing.

-- Strengthen the capacity of the regulator to effectively discharge its duties.

The TA was designed to include three components. The first component reviewed the broad framework of corporate governance in Pakistan's capital markets relative to best international practices and recommended a sequenced reform programme.

The recommendations with regard to the sequencing and pacing of reforms took into account the prevailing economic and political environment of the country.

The second component was designed to assess the operations of the capital market and identify gaps and constraints inhibiting good governance practices. A strategy was prepared, which recommended step-by-step measures to fill identified gaps and resolve constraints, in addition to addressing enforcement capacities.

The third component was aimed at enhancing capital market participants' knowledge and understanding of corporate governance and capital market development initiatives. Emphasis was also laid on the capacity of the regulator, Securities and Exchange Commission Pakistan (SECP), to effectively discharge its duties.

According to report, the key outputs of the technical assistance were a set of reform recommendations under each of the components. The consultant reports were of good quality and can form the basis of the future reform agenda in the financial sector.

The executing agency was satisfied with the TA outputs and the TA implementation was considered to be effective in achieving the desired objectives.

With regard to improving capital market efficiency and corporate governance, the key recommendations of the consultants were:

-- Establishment of a separate listing division and committee with each exchange to which all listing matters are delegated, developing standard listing regulations and requiring that all listing documents are made available for inspection for a period of 14 days prior to initial public offering, and developing risk weighted capital norms for investment houses.

-- Requiring brokerage houses to demonstrate that it is competent to conduct its business efficiently and effectively, establishing procedures for compliance reviews and audits, rules for allowing banks to participate in securities businesses and in the longer term requiring brokers to undertake continuous trainings:

-- Clarifying the role of SECP and codifying the take-over regime.

-- Suggesting what should constitute price sensitive information as well as how and when to disclose relevant information.

Further suggestions were provided to establish procedures and regulations for disclosure of information governing change in shareholding, disclosures by controlling shareholders and for monitoring the said disclosures.

 

[Neo]

ISLAMABAD (July 27 2006): Planning Commission Deputy Chairman Dr Akram Sheikh has said that the country is wasting annually about $12 to 14 billion of its natural resources by not properly utilising them for sustainable growth.

Giving the break-up of the losses, he said that these included $5 billion for water, $3 to 4 billion through poor transportation, $3 billion of industrial wastage and almost $1.5 billion on imbalance in use of fertiliser and huge wastage of perishable commodities.

He requested the committee members that they should play a role in creating awareness among the stakeholders and public at large to give them the idea of protecting national interests by proper use of natural resources.

He said that only cutting down of wastage could help Pakistan grow its economy and benefit the common man. He said that that Planning Commission has already initiated various projects to improve performance of different sectors and to enhance production in a short time. All these wastage of resources were mentioned in Medium Term Budgetary Framework (MTBF), he said.

The Deputy Chairman said that the government was trying to increase Public Sector Development Programme (PSDP) allocation from 4 percent to 7 percent of GDP in the coming years.

Out of the total PSDP outlay of $7 billion, Akram said, about 67 percent allocation would be utilised to develop infrastructure of power and energy sectors for robust growth. He said this before the National Assembly Standing Committee on Planning and Development here on Wednesday.

The meeting was attended by Rehman Naseer, Amjad Ali Warraich, Muhammad Hussain Mehanti, Gul Rehman, Razia Aziz, Habibullah Bughio and Shahid Bhutto.

The Deputy Chairman told the committee that the commission could not monitor all schemes being executed by various agencies. Out of total 1900 projects, it could only monitor 400 or 500 while the rest would be monitored by respective principal accounting officers, he added.

About operational control of Gwadar Sea Port, the Deputy Chairman said that the party, which would have an operational control of the port, would be named within a couple of weeks.

"There is no disparity of executing PSDP projects in all the four provinces. However, the allocation for dam construction would only be made for NWFP and, similarly, port allocation for Sindh," the Deputy Chairman said.

The Committee advised the Commission that the next PSDP allocation should be made more for education and health sectors.

The Commission also sought the input of the legislators for making the resources, allocated for the development, more transparent and vigilant.

 

[Neo]

SIALKOT (July 27 2006): The Punjab government has released funds, amounting to Rs 90 million, for the establishment of an ultra-modern engineering university in Sialkot.

The official sources told Business Recorder here on Wednesday that Sialkot Chamber of commerce and Industry (SCCI) had provided funds, amounting to 0.13 million Euro as a matching grant to Royal Institute of Technology as matching grant.

Apart from this, necessary arrangements for undertaking development work on this mega project are being finalised and work on the project would be executed shortly.

The proposed engineering university would be developed over 200 acres of land on Sialkot-Eminabad road and the Punjab government had already issued the notification of the allocation of land for the engineering university.

The proposed university would not only cater to the needs of Sialkot industrial sector, but would also produce skilled industrial force. Besides, it would also provide the opportunities to the students for acquiring the higher education at local level.

The proposed university would provide broadbased opportunities of industrial research and development to local industries like surgical instruments, sports goods and leather industry for resolving their problems pertaining to innovation of products.

The Royal Institute of Technology (Sweden) was extending financial assistance and co-operation in setting up an engineering university. The role of Swedish government would be instrumental in establishment of the proposed university and collaborate in providing the technical know-how. The Swedish government would also provide necessary assistance in formulation of faculties of the proposed engineering university of Sialkot.

At present, the local business community, engaged in surgical instruments manufacturing, sports goods and leather industries, was facing problems due to lack of the research and development facilities at local level. The surgical industry and sports goods industries of Sialkot had the potential and both the sectors could earn seven billion dollars and 10 billion dollars respectively.

 

[Neo]

KARACHI (July 27 2006): The city power demand dropped due to pleasant weather that help in saving over 100MW as the power utility was already facing such shortage in its network.

This was informed by the Principal Officer Public Relation of Karachi Electric Supply Corporation (KESC), Syed Sultan Hasan at a daily briefing of the city power supply situation to the media here on Wednesday.

He said, the Hubco-KESC link was down since Tuesday, 2 a. m and likely to synchronised by Friday morning due to problem at Wapda's end. The expected city power demand may touch 2140 mw and the available power is 2106 mw, on Wednesday. Both the 220 mw circuit of KDA-Jamshoro circuit are available.

On Tuesday evening from 5 p. m. onward the power demand and supply remained equal and during peak hours (8 pm to 10 pm), the power utility didn't resort to load shedding till morning. At about 0628 hours on Wednesday morning, the Unit No 3 of Bin Qasim Power Station (BQPS) was tripped and synchronised at 1347 hours.

At 1152 hours, 132KV KTPS-Korangi West Circuit and KTPS-Qayyumabad circuit No 2 tripped off due to flash on the 132KV-busbar-support insulator at Korangi west grid. Korangi west and east and PRL grid remained affected from 1152 to 1315 hours. However, transformer No 2 at Korangi west grid is still unavailable. Its load is taken on transformer No 1.

The load is being shed due to overloading of transformer No 1 and 2 expected to be normalised by 1600 hours. Due to system constraints the load is being shed at Elander road and Mauripur grid stations.

Moreover, three grid stations to be ready by December this year, at West Wharf, Mauripur and Old City (Mithadar), which include six transformers of 4MVA and 72 feeders at a cost of Rs 2.5 billion.

 

[Neo]

WASHINGTON, July 26: Adviser to the Prime Minister on Finance Dr Salman Shah briefed the World Bank on Wednesday on the economic performance of Pakistan. Macro indicators of the country’s economy, like GDP growth, declining of public debt-to-GDP ratio, declining inflation and balance of payment surpluses were also discussed.

Global depository receipt issues of OGDC that will be listed on the London Stock Exchange came under discussion as well. GDR is a bank certificate issued in more than one country for shares in a foreign country.

World Bank Acting President Graham Wheeler led the bank team.

“The World Bank team appreciated Pakistan’s significance progress and consistency in economic and fiscal policies,” Dr Shah later told reporters.

He said the World Bank assured ‘total support’ for the development of Pakistan which was reflected in the country’s programme for the next three years pitched at $6.5 billion.

The World Bank acting president assured that the bank would assist Pakistan in the efficient implementation of the bank’s enhanced programme in the country, Dr Shah said.

Mr Wheeler told the Pakistani delegation that the bank was selecting a new country team for Pakistan which would be in place before the end of this year.

The Pakistan delegation and the World Bank team also discussed national and transport corridor projects and the Indus river water and storage reservoir projects.

The bank’s report on the framework for the Indus River Waters Development will be presented to the government of Pakistan by the World Bank mission that will visit Pakistan shortly.

The World Bank acting president was assisted by the Vice-President South Asia, Director for Asia and Country Director for Pakistan, John Wall. Pakistan Ambassador Mahmud Ali Durrani was also present in the meeting.

 

[Owais]

ISLAMABAD (July 27 2006): National Reconstruction Bureau (NRB) Member Inamul Haq has said that around $500 million would be spent on the capacity building of the local government in the next four to five years. He was addressing the Consultation Workshop on Poverty Reduction Strategy Paper (PRSP-II) on 'Governance' here on Wednesday.

The Additional Secretary External Finance, Ministry of Finance, Asif Bajwa, chaired the workshop on the final day of a three-day workshop. Inamul Haq said the capacity building of Nazims, Naib-Nazims, councillors, and all others involved in the local bodies would be enhanced to ensure better service delivery.

The Federal Cabinet had approved the establishment of 'Schools of Local Governance' in November 2002, he said, adding the local body representatives should have a clear picture of their authority, responsibility, and job description to play their effective role.

He said the capacity of TMAs would also be enhanced through new manuals and training of relevant Tehsil/Town officers and employees with the collaboration of the NRB and the World Bank.

He emphasised that the objectives of good governance can best be achieved by introducing pro-poor policies. To focus on the process through which the poor in the society have access to savings and use credit to initiate new small-scale economic ventures are a priority, he added.

Inamul Haq said the NRB has developed a model to improve relationship between financial institutions and the poor as 18 million people from the rural areas are expected to benefit from this. The main factors of governance, which must be focused upon, are predictability, accountability/transparency, participation of all stakeholders, and service delivery, he said.

Inamul Haq reiterated that if governance reforms, including devolution process, access to justice, and civil service reforms are implemented successfully, then economic growth and poverty alleviation goals would be comprehensively achieved.

He said that local government bodies system is an effective system and capable of addressing the community's issues in the best way. However, corruption at all levels be monitored and checked. This is one of the big challenges, he cautioned.

He said the local governments would make procurement from the allocated budget independently without consulting the federal government, and this would increase its efficiency.

The Citizen Community Boards (CCBs), which have gained popularity on account of public participation, have absorbed 600,000 people, who are engaged in the development activities under 25,000 CCBs. There is a need to revise and simplify the rules to facilitate CCBs taking care of any corruption, he maintained.

Inamul Haq stated that Pakistan has taken the first right step to development by identifying governance, and hoped that devolution process would work as an engine of growth. Referring to the Local Government Ordinance (LGO), 2001, he said it recognises the right of the citizens to obtain information about the working and performance of the local governments, which could be best achieved through information technology (IT), he noted.

In this regard, the NRB has introduced Narims Software that will be made functional shortly and meet all requirements of all district government officers, elected representatives and citizens. He, however, said that some classified information would not be made public.

Establishment Secretary Syed Tariq Ali Bokhari, a panellist, said there is a need to reform the civil service structure. The needs of the society have not been catered for 50 years. The people who were meant to serve the public never considered it as their priority. The reform process suffered with the rush of daily routine, he added.

Allaying apprehensions of the participants on various issues, Inam said the process of devolution should continue, as under the system, he remarked, the money is distributed to every corner of the country. He said that India acknowledging Pakistan's reformative process has shown great interest in the joint venture.

Replying to another question, he said the authority of DCOs is limited to police order and the law and order only. It is imperative to assign power to the Nazims if they are to be made effective, he added.

The workshop document said that National Construction Bureau is working on various issues like district service, civil service reforms, provincial restructuring, federal to provincial devolution, computerisation of record-of-rights, media and governance, CCBs, fiscal decentralisation and inter-governmental transfers, taxation, strengthening of institutions, enforcement of local and special laws, municipal management, capacity building, police rules, financial intermediation for poverty reduction, and would finalise them in two to three years.

In his concluding remarks, Asif Bajwa said that all the recommendations and views expressed by the participants would be incorporated in the PRSP-II document.

He showed his concern that human resource, which is the main driving force behind all the activities, is under paid, whereas commodities are available at the market rate, and this should be given due consideration to meet the goals, he added.

Neo, its a duplicate post. I already posted that news.

 

[Neo]

Sorry, my bad!
I'll delete the post, thanks for notifying.

 

[Owais]

Production resumed at Akhurwal Coalmines PESHAWAR: NWFP Governor Lt. Gen. (Rtd), Ali Muhammad Jan Aurakzai has called upon tribal people to resolve their disputes over mineral wealth, this, he said while inaugurating Akhurwal Coalmines, near Darra Adamkhel.

The coal deposits in the area were discovered, as early as 1978 but due to tribal disputes over the ownership of these mines, production could not be started even after the passage of 28 long years.

There are 42 coalmine sites, all identified in Akhurwal area, of which production has been started from seven sites after resolution of dispute.

The Governor was informed that the production from seven mines that started on July 12 has been increasing and it has now reached 15-20 metric tons a day.

 

[Owais]

Al-Tawairqi Group signs power deal with Saudi firm KARACHI: Saudi steel makers Al-Tuwairqi Group of Companies has signed an agreement with Saudi Electric Company (SEC) for setting up power supply station costing $ 75 million at Dammam.

According to the group here, this power station will supply 230 KV/250 MVA electricity to coming up Al-Tuwairqi steel plant at Dammam at a cost of $ 325 million to produce 2 million tons of steel per annum.

Al-Tuwairqi group is setting up a steel making plant to produce 1 million tons of steel annually at a cost of $ 300 million at Port Qasim, Karachi.

The agreement was signed by Regional Manager of the group Sami Bin Abdul Aziz and Director Al-Tuwairqi Steel Karachi Zaigham Adil Rizvi who is also the head of electrical division of Al-Tuwairqi Group.