Pakistan Economy - News & Updates - Archive

[Neo]

Friday, September 22, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\09\22\story_22-9-2006_pg5_2

By Tanveer Ahmed

KARACHI: The government has sought proposals from the ministry of food, agriculture & livestock (MINFAL) to increase exports of seafood to $700 million by year 2010 and $1,500 million by year 2005.

“MINFAl has asked the stakeholders in the fisheries sector to submit their proposals to meet the target,” sources told the Daily Times on Thursday.

Pakistan having a vast potential in the fisheries sector has remained unable to tap this potential despite the claims of the government to have registered a quantum jump in fish and fish products’ export, which totalled below $200 million so far.

Pakistan exported $196.15 million worth of seafood products in 2005-05 financial year compared with $138.94 million worth of exports in the previous year, registering a substantial growth of 41 percent.

The sources said that various surveys conducted in the past suggest that Pakistan could take up its fish and fish products’ export over one billion dollar annually with the development of aquaculture in the coastal belt of the country.

However, despite the known potential of the fisheries sector of the country, no serious efforts have been made to utilize its untapped potential, the sources said, adding that now there has been increasing realization among policy-makers to utilize this potential to contribute to the overall export volume of the country.

“The plan is also part of this year’s trade policy to develop the non-traditional sectors to enhance the export, especially in view of the fierce competition the country’s textile exports are facing in the international market”, the sources said.

The sources in the seafood industry said that the industry is now engaged in preparing proposals to submit them to the ministry to enhance fish and fish products’ exports.

Highlighting some of the proposals on which work is underway, the sources said that improvement in catching system of regularization of all steps on scientific modern methods and implementation of the rules already in existence with some modifications.

Improvement in auction system, market timings, removal of illegal auctions, strong security system in markets along with the increase supply of raw material and improvement and addition of plants proportionately.

Also, the government should give free lands or at nominal rates to exporters, requiring them to invest in aquaculture and preference should be given on shrimp farming with the provision of necessary infrastructure for the development of aquaculture.

Besides, strong legislation and enforcement of laws at creeks and at harbours for checking illegal fishing while there should be a strong central authority with full power to run the seafood industry.

Concessions such as reduced refinance rate, prompt resolution of pending sales tax, abolition of all kind of sales tax, duty free import of machinery, duty free imports of packing material used for the seafood export.

The industry sources said that these and host of other proposals, which are being worked out, if accepted and implemented in letter and in spirit, would bring about a sea change in seafood exports.

“Despite the fact that the industry performed exceptionally well during the last fiscal year on the back of strong growth in tuna fish catching, it is still struggling to fully recover from the turbulent times it faced in the recent past”, the sources added.

 

[Neo]

BY BABU DAS AUGUSTINE

22 September 2006



DUBAI — The Central Depository Company (CDC) Pakistan which hosted a roadshow in Dubai on Wednesday to promote investment in the Pakistani capital markets is expecting a big growth in investment flows during the next 12 months.
The roadshow sponsored by Khaleej Times and attended by more than 200 finance professionals including representatives of fund management companies, stock brokers, leading GCC-based private equity houses, stock exchanges and government officials was addressed by CDC officials, Pakistan-based fund managers and economists.
Speaking at the roadshow, Mohammad Basheer Janmohammed, chairman of Central Depository Company (CDC) said, “CDCs MoUs with Abu Dhabi Stock Market and Dubai Financial Market will open the floodgates of investment into Pakistan. We expect to see a significant number of cross listings. In addition, we expect a number of Pakistani companies to raise capital from the UAE in the near future.”
Describing the MoUs as the first steps towards achieving greater investment flows into Pakistan economy from the UAE, he said, “There is urgent need for free and uninterrupted fund flow between the two countries. While Pakistan's economy is booming, its stock market, one of the best performing markets in Asia has a relatively low P/E of 9. A number of fund managers and brokerages have shown interest in opening their representative offices in the UAE to facilitate UAE-based investors to invest on Pakistan's stock market.”
Welcoming foreign portfolio investments into Pakistan's markets he said, “We are examining the possibility of allowing foreign banks and institutional investors that have no physical presence in the country to participate in the stock market.” As for the raising of capital from the international markets, CDC chairman said, “Until now Pakistani companies wanting to raise money through ADRs and GDRs went to American and European markets. Now, closer home, we have Dubai International Financial Centre.” Presenting the growing investment opportunities in the country Dr S Qaiser Anis, President of Pakistan Business Council, UAE said, “There is huge consumption surge that is happening in the economy which is driving an allround boom. The Pakistani middle class are showing big appetite for spending which was previously unheard of. Along with the growth we are also facing the threat of inflation. But the sound government policies are expected to keep the economy on track.”
Speaking about the economic fundamentals Janmohammed said: “The reform agenda of the government is based on the philosophy of privatisation, deregulation. liberalisation and transparency. The huge market size offers attractive investment opportunities particularly in the areas of power, energy, railways, IT and telecom and infrastructure and the government is providing a level playing field and investment friendly environment to local and foreign investors.”
Pakistan's economy maintained a solid pace of expansion in 2005-2006 and achieved 6.6 per cent growth despite an extraordinary surge in oil prices and the losses caused by the last years earthquake. Currently the key economic indicators such as the exchange rate and inflation are steady as sovereign credit rating and balance of payment situation has improved.
The size of Pakistan economy has doubled during the last seven years. Per capita income, which is considered one of the main indicators of development, grew by an average rate of 13.9 per cent per annum during the last four years rising from $582 in 2003 to $847 in 2006. Poverty is declining as 12.8 million people were brought out of the poverty net during 2002-2005.

http://www.khaleejtimes.com/Display...usiness_September740.xml&section=business&col=

 

[Neo]

Updated at 2115 PST WASHINGTON: The hundred percent members of American Business Council (ABC) declared the atmosphere of business and investment positive in Pakistan, this was reported on Friday.

According to a survey report issued by ABC, the 96 percent council members agreed that Pakistan’s economy is moving quite well; while, 47 percent members voiced their reservations over the internal and external political situation of Pakistan.

The report says that many members also expressed their reservations over law and order in Pakistan.

According to survey report, only six percent companies gave Sindh government a good rating; while, 20 percent preferred good rating for Punjab.

The report notes that ABC members deposit every year more than Rs35 billion in Pakistan’s national exchequer in form of direct and indirect taxes.

The report further says that ABC members lowered the rating of ministries of industry and health, Export Promotion Bureau and Intellectual Property Organisation.

For the first time ever, the performance of city governments has been reviewed and 15 percent members gave good grades to Karachi City Government whereas the 29 percent appreciated Lahore City Government.

 

[Owais]

Musharraf's visit linked to promoting investment


ISLAMABAD (September 23 2006): Prime Minister Shaukat Aziz said on Friday that President Musharraf's visit to Cuba and the US would help project Pakistan's true image abroad, highlight the critical role being played by it in the global and regional peace and security and further promote foreign investment in the country.

He made these observations while talking to Pakistan Muslim League Secretary General, Senator Mushahid Hussain Syed, who called on him at the PM's House.

The prime minister said that the US was a major trading partner and investor in Pakistan and the president's interaction with the leading businessmen and investors would help create awareness among them and generate interest in investing in Pakistan in several sectors, including power generation, financial services and infrastructure.

He said that the president's address at the United Nations General Assembly highlighted Pakistan's desire for peace, its efforts towards dispute resolution and promoting interfaith harmony and understanding in the world.

It also underscored Pakistan's firm belief that the UN system has contributed to peace and that it could be made even more effective through well thought out and comprehensive reforms.

The prime minister said that president's interaction with overseas Pakistanis belonging to all walks of life would also contribute to their better understanding of the government's policies enabling them to be in a better position to advocate the case of Pakistan at various levels. It would also encourage them to increase their remittances and investments in Pakistan, he said.

 

[Owais]

'US industrialists ready for investment'


LAHORE (September 23 2006): The industrialists, businessmen and traders of the United States have shown keen interest to invest in Pakistan following President General Pervez Musharraf's address to them during his current visit there.

Former chairman Pak-US Business Council and President Federation of Pakistan Chambers of Commerce and Industry, Iftikhar Ali Malik stated this here on Friday. He said that there were ample prospects for US and other foreign multinational companies to invest in various sectors in Pakistan.

While unfolding distinct features of his economic policies, President Musharraf in his speech offered an unprecedented package of incentives to foreign investors, Malik said that the president also assured sovereign guarantee to their investments with better and secured business atmosphere. He said Pakistan was a country rich in history, culture and natural resources, adding he was confident that the partnership between the United States and Pakistan would further improve in the years to come.

 

[Owais]

Non-food inflation declines to 7.4 percent


KARACHI (September 22 2006): Non-food inflation has declined to 7.4 percent in August 2006 from 8.8 percent in the corresponding period last year, according to the State Bank's monthly publication 'Inflation Monitor', released on its website here on Thursday.

However, the headline inflation increased in the second month of the current fiscal year primarily due to an upsurge in food inflation coming from supply disturbances on the back of recent rains and floods that not only affected production, but also transportation of commodities from farm and mills to the markets.

Consumer price inflation has been recorded at 8.9 percent YoY in August 2006 compared with 8.4 percent in the same month last year. Food inflation has been registered at 11.1 percent - the highest of the last 13 months.

After being recorded at less than 7 percent on average during FY06, food inflation increased significantly to 11 percent YoY in August 2006, driven mainly by increase in prices of wheat flour, bread, cooking oil and ghee, chicken, eggs and vegetables, including onion, tomatoes, and green chillies along with persistent pressure on prices of some pulses.

Contrary to food inflation, non-food inflation declined from 8.8 percent in August 2005 to 7.4 percent in the month under review primarily due to decline in inflation of transport and communication sub-index and continued deceleration in house rent index, says the Inflation Monitor.

Core inflation measured as non-food and non-energy declined from 6.3 percent in July to 6.2 percent in August 2006, while trimmed mean core inflation showed an increase from 6 percent at the end of FY06 to 6.5 percent in August 2006. The rise in trimmed mean core inflation is due to some key food and energy items, having very high weight and high inflation, like fresh milk, beef, mutton, potatoes and petrol supper. Thus, the recent inflation has primary been coming from supply factors, while the demand factors still remained under control with the deceleration in money and credit growth during the initial months of FY07 and rise in interest rates.

Wages of construction workers showed a deceleration due to temporary slowdown in the construction work because of rains during the month under review. Wage inflation has been recorded at 15.9 percent in August 2006 compared with 17 percent in the preceding month. However, it was higher than that recorded in the corresponding month last year.

On the dis-aggregated level, wages of skilled workers increased by 15.7 percent, and those of labourers by 16.9 percent, which were lower as compared with July. As the nominal wages decelerated and CPI inflation increased, real wage inflation went down significantly and recorded at 6.9 percent in August 2006 compared with a higher rate of 9.4 percent during a month earlier, according to the Inflation Monitor.-PR

 

[Owais]

Karachi retail grocers reject City Govt.’s pricelist


KARACHI: Karachi Retail Grocers Group has rejected the pricelist released by the City government.

Group’s chairman, Sufi Mohammad Akram and secretary general, Farid Quraishi told journalists that the City government has issued the pricelist unilaterally by ignoring the proposals of the wholesalers and retailers.

Farid Quraishi said that if the government wanted realization of the published rates, then it should ensure the enforcement of the prices in the wholesale market. He said that the pulses and spices, for which the City government has fixed prices, were available in the wholesale market at higher rates. He told that if the retailers do not get these items from the wholesale market in accordance with the City government’s prices, then they would stop its selling altogether.

 

[Neo]

Saturday, September 23, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\09\23\story_23-9-2006_pg5_3
KARACHI: The American Business Council (ABC) of Pakistan' survey of this year has found a positive outlook on the overall business climate in the country.

According to a statement of the ABC on Friday, this year's survey results revealed a positive outlook on the overall business and economic climate and general satisfaction with the roles played by the SBP, SECP, CBR, income tax and customs.

On the other hand, a decline in ratings was evidenced for ministries of industries, health, interior and labour & manpower as well as the Export Promotion Bureau and the Intellectual Property Organization.

In addition, a broad cross-section of respondents expressed concern over the deterioration in law & order and indicated that international perception is still not positive. Zubyr Soomro, the ABC President, said that 2006 survey results provided members with current assessment as well as changes in their perception versus last year. Results of this survey are based on responses from 85 percent of ABC members.

The results suggest that 100 members are positive about the overall business climate in the country, 96 percent members rate the domestic economy as good or fair while 47 percent expressed reservations over the internal and external political situation.

The Sindh government overall received a good rating from only six percent of respondents whereas the government of Punjab received a rating of 20 percent. For the first time, the survey also sought assessments of city governments, whereby 15 percent of respondents gave a good rating to the City District Government Karachi while 29 percent gave the City District Government Lahore a good rating. ABC members contribute a sizeable amount to the national exchequer every year in direct and indirect taxes with last year's contribution exceeding Rs 35 billion. Member companies provided direct and indirect employment opportunities to more than half a million.

 

[Neo]

KARACHI: During the first two months of current fiscal year, the foreign financers invested $407.3 million directly and indirectly in Pakistan.

According to State Bank of Pakistan, during July and August 2006, foreign investors financed $31.9 million in stock market and equities. While, the amount of $375.4 million was directly invested.

The chunk of investment came from the developed countries, which is $263.9 million as direct investment. The foreign investment sent by developing countries was $78.5 million.

The developed countries were less attracted by stock exchanges and equities than developing countries.

 

[Neo]

Rs125.203bn being spent on AJK reconstruction

MUZAFFARABAD: An amount of Rs 125.203 billion is being spent on the reconstruction and rehabilitation of the earthquake-ravaged areas of Azad Kashmir, as a strategy is being evolved to ensure implementation of development and reconstruction projects.

This was stated by AJK Minister for Works and Serra Col (retd) Raja Muhammad Nasim Khan while speaking at a high-level meeting here on Friday. He said efforts were under way to expedite the reconstruction and rehabilitation process to ensure its early completion to help facilitate the victims.

Deputy Chairman Erra Lt-Gen Nadeem told the meeting that the matter was also under consideration to hand over the whole reconstruction and development works of Muzaffarabad city to China to make sure qualitative, standard and timely completion of reconstruction phase.

He said the standard and timely reconstruction of the quake-battered city of Muzaffarabad according to the town planning was essential and imperative.

The meeting reviewed in detail different aspects of the ongoing reconstruction and rehabilitation activities as it was also informed about the details of the strategy being taken regarding development and reconstruction works in various sectors.

The meeting was told that over Rs 64.32 billion investment was being made on different sectors of development.

In the health sector, Rs 5.92 billion is being spent as some 176 health centres will be reconstructed in the quake-hit areas of Azad Kashmir, which include two district hospitals, two Combined Military Hospitals, four Tehsil hospital, 47 civil dispensaries, 15 Rural Health Centres and 96 basic health units, the meeting was informed.

In the education sector, Rs 28.240 will be spent on the reconstruction of 12 degree colleges, 29 inter colleges, 298 higher secondary schools, 498 and 1,852 middle and primary schools respectively.

The meeting was informed that Rs 6.140 billion was being incurred on the communication and roads sector on the construction of 810km roads and 2,725-metre long bridges.

The meeting was told that development work plans of electricity, education and health sector's projects have been completed while work plans of the other sectors in connection with the reconstruction phase were under completion.

The meeting was told that Satellite Town for the rehabilitation of victims will be established near the Muzaffarabad Airport while the project of Muzaffarabad Airport repair and extension will also be implemented. The meeting was told that in the reconstruction phase the local contractors of Azad Kashmir could also join the construction projects as sub contractors.

The meeting was informed that Rs 25.17 billion has been disbursed among the victims as assistance while Rs 3.45 billion has been distributed among the heirs of victims as compensation amount so far.

The meeting was told that a survey regarding the destroyed and damaged buildings in the rural and urban areas had been completed as compensations would be distributed among those victims, who were residing in more than one storied buildings according to the amended policy of ERRA besides some 5000 prefabricated houses will also be provided to most vulnerable families disturbed due to land sliding and land use plan in Muzaffarabad.

 

[Ababeel]

Pakistan is going well so far,however the economy needs transformation from an agrarian to knowledge based eonomy very fast.Fields such as engineering,electronics,material sciences,semiconductors,industrial automation systems etc must be given highest priority as soon as possible otherwise the developed & newly emerging economies will go much ahead.
Chinese,malaysian & Turkish help must be taken to develop these departments immediately.Simultaneously National R & D in these sections must be strengthen with huge investments.

 

[Owais]

PM for maintaining sanctity of Ramazan
ISLAMABAD (updated on: September 23, 2006, 23:50 PST): Prime Minister Shaukat Aziz has called upon all the sections of society including parliamentarians, businessmen, government servants and public at large to play their due role and fulfil their personal and collective responsibilities in maintaining the sanctity of Ramazan.

Talking to a group of parliamentarians who called on him here at the PM House on Saturday, the prime minister said Ramazan is a month of blessings and fasting acts as a shield against vices.

"The noble qualities of patience, spirituality, sacrifice and the realisation of the pains of less fortunate and the deprived can become the basis of a society based on social welfare, equality, justice, tolerance and a sense of caring and sharing," he said.

The prime minister reiterated the government's commitment to provide maximum relief to the public during the holy month of Ramazan and said any artificial price hike will be encountered with the full force of the law.

The provincial governments have been asked to ensure adequate supply of essential items through an expanded distribution network and fully activated mechanism of price checks through the price magistracy system, he added.

The prime minister said in addition to the Ramazan Package announced by the Federal Government, the provincial governments have also been asked to devise similar schemes to provide further relief on a broad range of items most commonly consumed during Ramazan.

Talking of President General Pervez Musharraf's meeting with US President George W. Bush, the prime minister termed the meeting as very productive and said it will lead to further cementing of bilateral relationship and the strategic relationship that exists between Pakistan and the United States.

The meeting between the two leaders, the prime minister said, has created a better understanding and appreciation of Pakistan's point of view on regional and international issues.

He said that the president's address at the United Nations General Assembly projected Pakistan in its true light.

It highlighted Pakistan's role as an anchor of peace in the region, our efforts for dispute resolution, regional co-operation, and for promoting interfaith harmony and understanding in the world, he added.

The prime minister further said that the address also underscored Pakistan's firm belief that the UN system has contributed to peace and that it can be made even more effective through well thought-out and comprehensive reforms.

He said as a result of the steps taken by the government, the economic landscape of the country has been transformed. The magnitude of the growth achieved during the last four years in a row has positioned Pakistan as one of the fast growing economies in the Asian region, he added.

The prime minister said the additional fiscal space created as a result of the success of reform agenda has enabled the government allocate more resources for development projects and the government is now focussing on transferring the benefits of growth to the grassroots level.

He said the number of development schemes under implementation today are unprecedented in the country's history.

The government is focussing more on improving the facilities of health, education, clean drinking water, electricity and strengthening of infrastructure, he added.

The government, the prime minister said, will continue to enhance allocations for the development projects and will ensure their timely implementation.

The parliamentarians said the meeting between President Musharraf and US President Bush would help further strengthen the bilateral ties and create a better understanding of each other's point of views on major international and regional issues.

They said the president's Havana and US visits have been instrumental in projecting Pakistan as a moderate, enlightened and investment friendly country and more investments will be coming to Pakistan which will result in employment generation, up-gradation of skills and transfer of knowledge and technology.

The Parliamentarians assured the prime minister that they will co-ordinate with the relevant authorities to keep a vigilant check on prices and to control the unnecessary price hike of essential commodities during the month of Ramazan.

The members of parliamentarians' delegation included Maulana Abdul Bari (Provincial Minister of Balochistan), Rao Muhammad Ajmal Khan, MNA, Syed Gulzar Subtain, MNA, Syed Javed Ali Shah, MNA. Special Assistant to the prime minister, Commander (r) Khalil-ur-Rehman was also present in the meeting.

 

[Owais]

CDWP approves 23 projects worth Rs 22.9 billion


ISLAMABAD (September 24 2006): The Central Development Working Party (CDWP) on Saturday approved 23 projects costing Rs 22.9 billion, while deferred three projects worth Rs 96.13 billion. The meeting, chaired by planning commission deputy chairman Dr Akram Sheikh, approved 23 projects worth Rs 22.9 billion including a foreign exchange component of Rs 6 billion.

The meeting deferred three projects-one pertaining to water & power and two of population & welfare divisions. The water and power secretary and Wapda chairman had informed the commission in writing they would not be available on the said dates to attend the CDWP meeting; therefore, energy sector projects worth Rs 95.73 billion were deferred.

Of the 23 projects approved in the Saturday's meeting, nine projects have already been included in the public sector development programme (PSDP) 2006-07 with an allocation of Rs 10.4 billion while nine projects of Rs 17.35 billion have been recommended by the CDWP to Ecnec for consideration and approval.

Projects recommended to Ecnec include wheat farming system (Rs 645 million), crop maximisation project-II (Rs 7.8 billion), construction of bridge on River Ravi (Rs 686 million), rehabilitation of telecom system by Erra (Rs 630 million), land record management and information system (Rs 3.12 billion), provision of water to Pakistan Textile City Limited (Rs 636 million), new office block for foreign affairs (Rs 532 million) and AJK-community infrastructure and services programme (Rs 2.4 billion).

Giving details of approved projects, commission spokesman Dr Asif Sheikh said out of 23 projects, 10 projects worth Rs 8.2 billion were related to infrastructure, nine projects of Rs 6.1 billion to social sector while the remaining four projects of Rs 8.6 billion were related to other sectors.

Of the approved projects, six projects are to be executed in Punjab, four in Sindh, one each in Northern Areas and AJK and 11 in other parts of the country, Dr Sheikh added.

Rs 95.73 billion have been allocated for the energy sector for acquisition of land and resettlement for major dams. Project-wise, Rs 67.023 billion was allocated for Diamer-Bhasha dam; Rs 818 million with foreign exchange component (FEC) of Rs 258 million for Akhori dam; Rs 27.824 billion for carrying out detailed engineering design and tender documents of Akhori dam; and Rs 72 million for power distribution enhancement project.

The CDWP deferred two projects of population and welfare division worth Rs 469 million and asked the division to resubmit them with proper PC-I, he said. It also deferred establishment of the Medical College at the Sargodha University, as the Punjab government has informed the meeting that the said university does not have the prescribed faculty to start classes, Dr Sheikh added. The meeting also approved a proposal for utilisation of technical assistance in the development projects.

It recommended policy options, which include:

i) Incorporating the programme of raising the expertise efficiency and utilisation of local human resources.

ii) Using participation of local human resources in each of the foreign-funded TAs.

iii) Acceptance of foreign experts in only those areas in which local expertise is not available.

iv) Technical assistance loan should be avoided as far as possible.

v) Encouraging and ensuring transfer of essential knowledge through such technical assistance programmes.

vi) TA loan if unavoidable should not be spent on purchase of equipment, furniture, cars, study visits abroad and payment of office rent. This will be met from counterpart local funds and

vii) Delivery cost should not be more than 5 to 7 percent of the total TA amount.

Member infrastructure, Dr Asad also informed media men that the Asian Development Bank (ADB) would provide $800 million for the development of mega cities in Sindh while the World Bank would provide $100 million for the next three years for the development of mega cities of Punjab.

Donor agencies like Jica have also shown interest in developing other cities in the country, Dr Asad added. Implementation director-general Lieutenant General Zubair (Retd) said all mega projects of infrastructure and communication would be completed on time.

To a question, Zubair said work on the Gomal Zam dam would be supervised by the Frontier Works Organisation but there was no increase on the cost of projects. The Chinese firm will construct the main dam while Turkish firms will construct irrigation system, he added. This was the third meeting of the CDWP in the current fiscal while in earlier two meetings, 53 projects worth Rs 74.9 billion were approved.

 

[Owais]

Growth target may be missed due to low level of investment


ISLAMABAD (September 24 2006): With the current low level of investment, the government will not be able to achieve the GDP growth target of 7.6 percent in the coming five years as projected in the Medium Term Development Framework (MTDF), the Institute of Policy Studies (IPS) cautioned.

A research study entitled "Pakistan's Economic Journey: Need for a New Paradigm" launched recently by the IPS suggests the realisation of the economic goal would require substantial rise in investment to more than 25 percent from the current level of 17 percent.

An investment rate of 20 to 25 percent of the GDP is considered to be reasonable to meet the replacement and incremental needs of a balanced economy. However, the total investment persistently remained below 19 percent of the GDP in the past.

Assuming over seven percent per annum growth during 2006 to 2015, the GDP of Rs 7.713 trillion should double in 2015 to Rs 15.426 trillion, generating a ten-year total investment of around Rs 22 trillion.

Over 90 percent of the investment are linked to economic activities in the agriculture, mining, industry, energy, transport and communication sectors.

Although, the investment in these areas is important as it leads to rise in production and productive capacity, building infrastructure and improving services, but for a balanced development, the study proposed paradigm shift in the reallocation of resources and enhancing investment in other areas as well.

Though the MTDF 2005-10, which designs for the 7.6 percent annual economic growth, projects marginal improvement in total investment; yet it seems difficult to achieve designed growth rate with the current level of investment unless it is supplemented with the human capital and efficient use of key inputs.

The study underlined the need to bridge the fiscal, balance of payment and investment gaps to ensure balanced development, besides harnessing the agricultural potential, whose sustained vertical growth is a critical element of the economic and social wellbeing, eradication of poverty and economic disparity.

The pace of diversification and structural change needs to be speeded up to turn the industry into an engine of growth as the basic industries like steel, metallurgy, heavy engineering, petrochemical and basic chemical, which are considered as indicators of industrialisation hardly exists.

The manufacturing sector is dominated by sectors such as cement, sugar, oil refining and others.

The study proposes inter-industry and inter-firm linkages, like sub-contracting vendor industry, harmonisation of standards, quality and processes, sharing of skills, technology and knowledge.

 

[Owais]

Punjab plans to organise, upgrade cottage industry

SIALKOT (September 24 2006): The Punjab government is actively considering a plan to establish an enterprise development organisation shortly in the province. Official sources told Business Recorder here on Saturday that the prime concept of the proposed organisation was to organise the cottage industry and to provide solid footing to the artisans in the province.

Under the programme, special steps would also be taken to provide facilities to the artisans for promoting local products and to provide technical assistance and marketing facilities to the cottage industry and artisans in Punjab. The programme would surly encourage cottage industry, especially artisans, to produce local products using home-grown skills.

Besides, the proposed programme would also ensure the considerable increase in the income of business community engaged in the cottage industry as well as artisans.

Sources further revealed that under a phased programme, 50 cluster development centres (CDC), aimed at technology upgradation, would be set up in major industrial cities of the province.

Under the programme, product development centre for composite-based material for sports goods industry (Sialkot), business support centre for electrical fittings industry (Sargodha), wood furniture facility services centre and showroom (Chiniot) and support centre for development of auto parts (Lahore) would be completed during 2006-2007.

Similarly, the CDC for metallurgy casting and agriculture (Daska), CDC for technology of domestic electrical appliances (Gujranwala), CDC for development and promotion of light engineering industries (Multan) and CDC for light engineering industries would also be established. Special focus will be on textile machinery and spare parts in Faisalabad, said the sources, had been included in the current annual development programme and work on these clusters would be carried out soon.

They said the step was being taken to provide maximum assistance and extend support to the business communities in technology upgradation