Pakistan Economy - News & Updates - Archive

[Owais]

Framework for ADB power transmission project prepared

FAISALABAD (October 14 2006): The National Transmission and Despatch Company (NTDC) has prepared 'Indigenous People's Development Framework' (IPDF) for Power Transmission Enhancement Program (PTEP) for Asian Development Bank (ADB), which will be implemented in Pakistan.

According to National Transmission and Despatch Company (NTDC) report, the objective of this project is twofold. On the one hand, it would establish the mechanisms and procedures required to satisfy the requirements of ADB policy on Indigenous People (IP), hereafter mentioned in the text simply as 'the ADB Policy', and on the other hand, it seeks to provide guidelines for preparation and implementation of the needed IP actions, either in the form of a modified 'Land Acquisition and Resettlement Plan (LARP) for situations where IP impacts are of small to medium magnitude, or in the form of a stand-alone Indigenous People's Development Plan (IPDP) for situations where impacts on IP are broad-based and systemic.

The Power Transmission Enhancement Program (PTEP), or hereinafter 'the Program', will be financed through a multi-tranche financial facility (MFF), including four tranches, each including several subprojects. The Facility appraisal requires the appraisal of the first tranche of the PTEP, which involves projects aiming at the expansion of existing grid stations through addition of transformers, construction of new grid stations, and installation of 220 kV transmission lines of various lengths.

Based on ADB operational policies regulating MFF proceedings all projects within a proposed tranche will have to be fully prepared. This includes, for projects with IP issues, the preparation of the appropriate IP action fitting the specific project situation.

According to NTDC sources, LARP or IPDP preparation activities will be initiated as part of the preparation of each tranche appraisal. Following the completion of detailed engineering design (DED) of the projects, each IPDP will be reviewed and, if necessary, updated prior to its implementation. The tranche design consultants and the tranche implementation consultants will have both international and local IP development capacity sufficient to cover all IPD planning and implementation needs for the first three years of the tranche implementation.

ADB will provide capacity to the Pakistan Resident Mission (PRM) for review and approval of Category 'B' IPDPs. Category 'A' IPDPs will be reviewed and approved by Regional Department at ADB headquarters in Manila.

In order to guarantee that the Project is implemented in accordance with the ADB policy and that general guidance is given for the preparation of IP action commensurate to impacts and IP compensation needs this document details the following: (i) ADB and Pakistan's Definition of Indigenous Peoples, (ii) Social Assessment Summary; (iii) The ICFRMP IP Policy and Strategy, (iv) Participatory Planning and Capacity Building (v) Document Preparation and Studies, (vi) Organisation and Responsibilities, (vii) IPDP Preparation Plan, (viii) Disclosure, Monitoring and Evaluation.

 

[Owais]

World Bank sees power as most critical bottleneck for Pak-India economies

ISLAMABAD (October 14 2006): The World Bank has pinpointed power as the most critical bottleneck, with transportation a close second, for Pakistan and Indian economies, as it estimates that due to power problems, these two lose 5-8 percent business annually.

The bank has also shown concern over the low tax-to-GDP ratio in Pakistan, which has declined over time and is now at 9.1 percent of GDP. It added that, like other countries of the region, Pakistan is facing increasing inter-regional disparities, with Punjab at one end and Balochistan and the North-West Frontier Province on the other. If these disparities went unchecked, poverty reduction and economic growth would dampen further, the bank has warned.

The South Asian region has lower saving and investment rates and, in particular, huge infrastructure deficits; distortions in labour markets; lower total factor productivity levels and poor quality of roads, inefficient ports, and inadequate transport services are still big challenges to sustain their growths.

In addition to infrastructure, the high cost of bureaucratic red tape and regulations--the sure signs of poor governance--impede investment in the region.

The bank says that ending poverty in South Asia in one generation requires faster growth. If growth can be accelerated and sustained at 8 percent a year, and the past response of poverty to growth is maintained, income poverty in the subcontinent will fall to single-digit in two decades.

Currently, growth is creating not just more resources but the potential to generate the political space for greater reform. On the one hand, it is breeding greater public demand for addressing urgent challenge and, on the other, it gives politicians the opportunity to make trade-offs through strategic prioritisation, it added.

The World Bank report titled 'Can South Asia End Poverty In A Generation', released by the bank last month, argues that growth, and the need for even faster growth, is helping to bring South Asia's key problems to the fore, creating pressures to deal with them. This means the region has an unprecedented opportunity: a chance of ending poverty in a generation.

It says that South Asia is sitting on another gold mine of growth--integration within the region. It is the least integrated region in the world. Starting from such a low base, greater trade among South Asian countries could have huge benefits to its people and then poverty reduction.

"Annual trade between India and Pakistan is currently about one billion dollars. Estimates show that it could be as great as $9 billion. Having enjoyed the gains from greater openness to the world at large, the private sector in each South Asian country can now benefit from trade with its neighbours", the bank said.

The bank says that even if the region achieves 8-10 percent growth, sustaining it will be a challenge, given a number of ticking time bombs lurking in the background.

Three risks stand out: Water, HIV/AIDS and Conflicts. These are denting growth in the region, the bank says. "Pakistan and northern India have been described as among the most 'water-stressed' areas in the world. Partly due to pricing policies that encouraged overuse, and partly due to hydrological and weather conditions, these areas, whose economies are dependent on irrigated agriculture, risk a severe water shortage at some point in the next 50 years."

Recent estimates for Andhra Pradesh show that global climate change, through its effect on droughts, could reduce future agricultural output and hence GDP by up to 3 percent. A major water crisis could undermine many of the economic gains accumulated over the years.

Although the HIV-prevalence rate is less than one percent, it poses an economic development risk to the region. There is a possibility of the epidemic spreading from localised groups, such as intravenous drug users or sex workers, to the general population. Furthermore, the syndromes of denial and stigma, which contributed to the spread of HIV/AIDS in other regions, are deeply rooted in South Asia.

Perhaps the most vivid set of risks facing the subcontinent is the number of simmering and full-blown conflicts. Sri Lanka, Afghanistan and Nepal have all experienced long-term civil conflicts in last two decades. The costs of Sri Lanka's 20-year civil war have been put at 2-3 percentage points of growth a year.

The region also faces numerous low-level conflicts that could flare up into a major disaster. Skirmishes on the border between Pakistan and India are one example; the Naxalite movement in India, which is prominent in one-quarter of the country's districts, is another. And the July 2006 railway bombings in Mumbai were a reminder that terrorism has a foothold in the subcontinent.

These three risks are real and they could seriously undermine the gains in economic welfare that South Asia has achieved over the past two decades.

But there are two reasons to be optimistic. First, South Asia has faced a number of adverse shocks in the past five years, and managed to sustain growth. The increase in oil prices has had only a mild impact on growth-mainly because governments took the politically difficult decisions to pass on most of the price increases to consumers, especially in Pakistan and India.

Just in the past two years, the region has also been hit with a series of natural disasters-floods in Bangladesh, a tsunami in Maldives, Sri Lanka and south India, and an earthquake in Pakistan-but the economies of these countries have rebounded within a year or two. The resilience of the South Asian people to these disasters has been remarkable.

Home to some of the world's fastest growing economies, fuelled by surging manufacturing and service exports that require highly productive and skilled people, South Asia has some of the worst levels of human deprivation on the planet. South Asia's recent growth offers an opportunity to change this.

Pakistan has enjoyed six percent annual GDP growth since 2002, but one in 10 children still dies before his fifth birthday and only 57 percent of children complete primary school.

Economic growth has led to a significant increase in the demand for education in India and Pakistan. Private schools are cropping up in rural Punjab province of Pakistan, charging about $2 per month in tuition, and hiring as teachers the graduates of the local high school. In urban Pakistan, all the growth in education enrolment is in the private sector.

 

[Owais]

30 Chinese firms, 400 engineers working in Karachi projects

KARACHI (October 14 2006): As many as 30 different Chinese companies and about 400 Chinese engineers are taking part in various uplift projects here. A Chinese delegation from Shanghai apprises City Naib Nazim Nasreen Jalil, while talking to her at her office on Friday.

They said a large number of Chinese investors were showing keen interest in investing in Karachi. The delegation, led by Vice Principal of Shanghai Urban Planning & Design Research Institute Huang Jiming, comprised of Zhou Dongxiao, Deputy Director of Shanghai Peoples Association for Friendship with Foreign Countries, Senior Engineer of Planning & Science and Technology Division Zhao Jiong, Shanghai Rail Transit Research's Deputy Manager General Wu Xioahong, Program Co-ordinator of Shanghai city Comprehensive Transportation Planning Institute Xu Yan and Qian Yulin of Environmental Protection Engineering Company Limited Shanghai, while Chinese Consul General Sun Chun Ye was also present.

The delegation members viewed that visit of City Nazim Mustafa Kamal to Shanghai has further strengthened friendly ties between Karachi and Shanghai, declared twin-cities in 1984.

Greeting the delegation, Nasreen Jalil said the path of friendship on which Pakistan and China were travelling jointly would be strengthened with passage of time. She hoped visit of Chinese delegation would further bilateral trade-ties between the twin-cities.

She informed that population of Karachi had gone beyond 16 million and felt the metropolis required a sound and co-ordinated planning. In this regard, she said the city government had already prepared a master plan for Karachi, which meets the needs up to 2020.

She was of opinion that opposition was quite strong in the City Council but as the city government was co-operating with them undertaking works to uplift infrastructure of 18 towns of without any discrimination, opposition was also extending its co-operation. She observed that although Karachi produces 68 percent revenue of the country but still it was deprived of its due share.

Nasreen apprised the delegation about reforms being made regarding representation of women in local bodies. She told that representation of women, which was earlier at 10 percent in the City Council, now had been raised to 33 percent and right now 830 women were present in city at different tiers of system unlike 20 women in past.

Leader of Chinese delegation Huang Jiming informed that population of Shanghai was approximately 17 million and after including those coming from other Chinese cities for their work, the figure would be around 20 million. He said Shanghai was spread over an area of about 6,000 Sq Km.

 

[Neo]

Govt allows 100pc equity in insurance business

ISLAMABAD, Oct 13: The government has enhanced the ownership rights to 100 per cent from 51 per cent for both domestic and foreign companies in life, non-life and general insurance business in a bid to attract foreign direct investment (FDI) in the sector.

A senior official told Dawn on Friday that the insurance sector was liberalised following bigger demand from the foreign insurance companies desirous to operate with 100 per cent equity in Pakistan.

The government, except the insurance sector, has allowed all other services-based sectors to hold 100 per cent equity. Due to this restriction, the insurance industry did not grow in Pakistan at a pace as it developed in other countries of the world.

The official said that Prime Minister Shaukat Aziz had approved the proposal in the recently held meeting of the Economic Coordination Committee (ECC) of the federal cabinet.

The official said that the commerce ministry had proposed to the government to allow foreign insurance companies to hold 100 per cent equity in life, non-life and general insurance business with the conditions for bringing in a minimum of $2 million in foreign exchange and raising an equivalent amount from the local market.

It was also decided that there would be no restriction on the number of branches and to whom they shall employ, said the official and added the foreign companies would be treated at par with the domestic companies.

When contacted Secretary Commerce Syed Asif Shah told Dawn his ministry moved the proposal on a feedback received from various insurance companies which intended to carry out investment in the sector.

He, however, said that this granting of 100 per cent ownership rights has not been committed with the World Trade Organisation (WTO). This means that Pakistan could retract this right to foreign companies from 100 per cent to any level.

The general insurance was the only area which was gearing up to grab new business opportunities that were emerging from a fast track privatisation programme, growing construction industry, increasing international trade and equally expanding domestic wholesale and retail trade.

When contacted Dr Ashfaq Hassan Khan, adviser to finance ministry, told Dawn the opening of the insurance sector would help attracting foreign companies to invest in the sector, which has enormous potential.

He said the liberalisation of the insurance sector was very much part of the financial reform process, which was delayed due to some problems. He said like banking sector, the insurance sector would also attract foreign players to get benefits from growing economy of Pakistan.

Answering a question he said that it would be premature to guess that how much investment would be attracted following opening of the insurance sector.

During the last three years, the government raised Rs240 billion by privatisation of 26 big public sector companies. The international trade during the year 2005-06 exceeded $44 billion and services sector that has wholesale and retail trade as big components were now more than 50 per cent of Pakistan’s economy.

All these economic developments have offered business opportunities to the general insurance companies.

 

[Neo]

Marble, granite cities to be set up: Tareen

KARACHI: Three marble and granite cities will be opened in the country, first in Karachi, Sindh and Balochistan to develop marble and granite industry on modern lines and produce quality products.

This was stated by the Federal Minister for Industries, Production and Special Initiative Jahangir Khan Tareen while chairing a high level meeting regarding the development of marble and granite sector at PIDC House here Friday.

Sindh Minister for Mineral Development Irfanullah Khan Merwat and senior officials were also present on the occasion.

He said that it has been already decided to speed up the work for the establishment of marble and granite city and training centre in Karachi.

The federal government will provide Rs100 million for this project while Sindh government will provide land.

Tareen pointed out that granite city will be established at Thatta or at any other place identified by the Sindh Government.

Similarly another marble city will be established in Balochistan.

He pointed out that latest and sophisticated heavy machinery will be purchased for these cities where small marble units can get these machines on rent for cutting, polishing and processing of marble and granite.

“This will enhance the quality of the products and reduce wastage in marble and granite mining, cutting and polishing”, the minister observed.

 

[Neo]

KESC to take quick steps for supply gap of electricity: PM

KARACHI (updated on: October 14, 2006, 23:43 PST): Prime Minister Shaukat Aziz said on Saturday that there is a surge in the demand for electricity as a result of the high growth and investment in the industrial sector and Karachi Electric Supply Corporation (KESC) should take necessary steps to bridge the gap between demand and supply to resolve the problems faced by the people of Karachi.

He was presiding over a meeting here at the Governor House held to review the power supply situation in Karachi.

The prime minister said the government is working to make Karachi the business and commercial hub of the country. It is closely monitoring the power supply situation in the city to solve the problems faced by domestic and industrial consumers, he added.

Shaukat said KESC urgently need to improve its transmission system so that it could be in a position to distribute additional power for which it is in the process of generating.

PM directed that mobile transformers be introduced in Karachi as a back up support to tackle the problem of power shortage caused by failure in transmission lines.

Chief Executive and Managing Director KESC Frank Sehersehmidt briefed the meeting about KESC's plans to enhance its power generating capacity.

He said presently there is no shortfall in terms of power supply as the demand and supply of power are almost matching and the power breakdowns are mostly caused due to renovation activities and the construction work going on in most part of the city.

Mr Frank said KESC is working on a comprehensive plan to increase its power generation and distribution capacity. The plans being implemented will result in addition of 1000 MW additional power to the KESC system within a period of two years.

The CEO KESC informed that the company will spend Rs 22 billion during the next three years on expansion, renovation and rehabilitation of its facilities.

He said as a result of steps being taken by KESC the power supply situation will considerably improve by April next year.

Federal Minister for Water and Power Liaquat Jatoi informed the meeting that Federal government will provide necessary funds to KESC under Physical Improvement Plan to enable it to ensure smooth power supply to Karachi.

Shaukat asked KESC to set up more complaint centres, increase its interaction with community and public representatives and also keep the public informed about its plans through media.

 

[Neo]

ISLAMABAD, Oct 14 (APP): An International Symposium on High Capacity

Optical Networks by Enabling Technologies - HONET 2006 was organised in USA to enhance already existing US-Pakistan collaboration for the promotion of science to benefit humanity at large.

The symposium jointly organized by National University of Science and Technology (NUST) and University of North Carolina at Charlotte provides a forum to the eminent scholars from US, Canada, Dubai, Japan and Pakistan to share their knowledge and experience, thus paving the way for new foreign linkages and bridges for further research and exploration of knowledge.

And more importantly the fresh cooperative lies built during this symposium would further strengthen US-Pakistan relationship, besides promoting inter-scholars research collaboration.

In the current age of globalization, it is imperative for all nations to join hands to pursue projects of mutually beneficial collaborative research.

NUST has always ardently espoused this cause and has stayed in the forefront in achieving its objectives. The three-day US-Pakistan international symposium is a prime manifestation of this spirit.

Funded by National Science Foundation (NSF), USA, the symposium was the third of the HONET series since its inception in 2004. It was co-sponsored by Higher Education Commission, Pakistan Telecommunication Company Limited (PTCL) as well as Charlotte Research Institute (CRI) and JEEE Cosmos, USA.

The most significant outcomes of the previous two workshops/symposia were forming of associations and forging sustainable links between USA and Pakistan in the field of academics and scientific research, with agreements providing for students induction in various scientific disciplines as well as research visits by the faculty.

The first workshop of HONET series was successfully held in December, 2004. Optical networks have emerged as one of the core technologies. Efforts at the HONET platform are sure to advance this revolution further.

 

[Neo]

Pakistan wants Shenhua to revive $1b project

14 October 2006

ISLAMABAD — Pakistan wants Chinese Shenhua Group to revive the $1billion mining and coal fired power project of 600MW which remained unfinished for the last many years.

Pakistan has approached the Chinese government to help bring back Shenhua Group for negotiations for the revival of power project at Thar in Sindh.

Sources said that the government believed that before closing the chapter, the Chinese Shenhua Group should be contacted as a last and final effort before the project was offered for international bidding.

The government, these sources said, had already taken a decision to establish a $500 million Thar Coal Mining Company on corporate lines with federal government's guarantee and the block earlier earmarked for Shenhua group could also be made part of that broader mining project.

When contacted, Secretary Petroleum Ahmad Waqar confirmed that a delegation to China comprising himself and adviser to the prime minister on Energy Mukhtar Ahmad had taken up the matter with the Chinese government in September.

We really want to reactivate the project that had become dormant for some reasons, he said.

He said the delegation requested the vice-chairman of the National Development Reforms Commission (NDRC) of China, a highest planning forum like Pakistan's Planning Commission, to bring back the company for negotiations.

We told them that we are willing to talk again on the project and resolve any outstanding issues, he said. He said the vice-chairman of NDRC had promised

to consult Shenhua Group and get back to the government of Pakistan with the response.

Waqar said the positive thing with the Shenhua group was that it was the largest group in China that is dealing with mining and power generation at the same time. He agreed that the main issue for break up of negotiations on the project was disagreement over the power tariff.

We have no contact with the company since long and we have made another effort to restore

communication between the two sides, the petroleum secretary said.

He said in competing fuels imported coal was almost equal to natural gas rates of about five cents per unit power generation cost while domestic coal would be slightly higher at about 5.56.0 cents, which would again be far cheaper than oil based 14 cents or so per unit cost.

The 600-MW coal-fired private power project originally planned to be developed by Shenhua Group of China (SGC) at Thar coal field in Sindh Province had run into problems when the Economic Coordination Committee (ECC) of the cabinet in Pakistan approved and offered to Shenhua group 5.39 cents per unit a tariff that was not acceptable to the Chinese firm.

The SGC did not say no to the tariff but went into hibernation and did not respond to a number of communications originating from Pakistan, another government official said.

He said President Gen Pervez Musharraf was also disturbed over non-materialisation of negotiations with a firm on Thar development that he himself had brought in with a lot of effort.

He twice expressed concern over delay in the development of the 600MW Thar coal-based project and directed a high-powered committee to remove all irritants within 15 days a deadline that could not be met in 11 months.

He had taken personal interest to provide over Rs 2 billion to the provincial government out of the federal resources to complete all infrastructure-related facilities.

Pakistan had offered a tariff of 5.39 cents per unit to Shenhua group last year.

The Chinese company had originally demanded 5.79 cents per unit for the 600MW project against Wapda's offer of 3.2 cents and National Electric Power Regulatory Authority's (Nepra) assessment of 4.2 cents.

The levelised tariff was, however, increased to 5.39 per unit in October last year at the intervention of Prime Minister Shaukat Aziz who wanted to kick-start the project.

http://www.khaleejtimes.com/Display...business_October435.xml&section=business&col=

 

[Owais]

Saudi Arabia to be offered Gwadar as energy corridor

ISLAMABAD (October 15 2006): Pakistan, during meetings between the two countries next month, will offer to Saudi Arabia the use of the Gwadar deep-sea port as energy corridor, official sources told Business Recorder here on Saturday.

They said that the first phase of the deep-sea port has almost been completed, at a cost of Rs 15 billion, and it would become operational in about two months' time.

They said that with the functioning of Gwadar port, Pakistan would become a hub of trade in the Gulf region and would serve as an energy corridor for Central Asia, Middle East, South Asia and western parts of China.

Gwadar is located at the entrance of Persian Gulf, from where 40 percent oil containers pass. "Negotiations with various private parties are underway for handing over operational rights of the port," sources said. Besides, the geo-strategic importance, some of the evident economic benefits of the development of Gwadar port are as follows:

To grab trade opportunities with landlocked Central Asian States and Afghanistan. Promote trade and transport with Gulf States. Trans-shipment essentially of containerised cargo. Unlock the development potential of hinterland. Diversion of influx of human resources from upcountry to Gwadar instead of Karachi. Socio-economic uplift of the province of Balochistan. Establishment of shipping related industries. Oil storage, refinery and petrochemicals. Export Processing and Industrial Zones. Reduce congestion & dependency on existing Ports Complex at Karachi/PQA. Serve as an alternative port to handle Pakistan's trade in case of blockade of existing ports. Will become a regional hub of major trade and commercial activities.

 

[Owais]

Super Basmati DNA tests successful

ISLAMABAD (October 15 2006): The DNA testing of Super Basmati has proved that its characteristics match with the already notified variety, published in the Gazette of Pakistan on January 1, 1998, sources told Business Recorder on Saturday.

The notification of the Super Basmati would be published in the Gazette of Pakistan under the Seed Act 1976 within a couple of days along with the deoxyribonucleic acid (DNA) results, they said. The row between India and Pakistan over registration of the Basmati variety started when India claimed developing the 'Super' in the Kharif 2003 season as a Basmati variety under the Exports Inspection Certification Act.

After the Indian claims, sources said, Pakistan decided to carry out DNA test of the variety at National Institute for Biotechnology and Genetic Engineering (NIBGE), Faisalabad, which matched the characteristic of the variety already registered under Seed Act 1976 on January 1, 1998.

After the notification of the variety, it would help the concerned officials to dissuade India from officially tagging its rice a 'Super Basmati', sources said, adding that the issue would be taken up bilaterally through diplomatic channels.

If the diplomatic means failed to persuade India, then Pakistan would move Dispute Settlement Court (DSC) of WTO.

However, Super Basmati rice issue was on the agenda of recently concluded international rice conference in India that it is exclusively Pakistani variety.

Super is originally grown in Pakistan as a cross between traditional pure line basmati cultivators and modern dwarf rice lines. Super Basmati has always had an edge over Indian Pusa Basmati-1 in international markets. Pakistan fears if India starts exporting the same rice, it could lose up to 40 percent of the world market.

Super Basmati is globally recognised as Pakistan's basmati variety and is very well accepted with exports over 800,000 tons. This rice variety has a high yield and earns a lot due to its superior quality. According to an estimate, annual rice exports from India and Pakistan fetch around $2.5 billion.

 

[Owais]

EPB chief for setting up of leather garment city

KARACHI (October 15 2006): Export Promotion Bureau (EPB) chairman Tariq Ikram has emphasised establishment of a "leather garment city" in Karachi to boost leather garments exports. Speaking at the certificate distribution ceremony of the second project for training of leather garment industry workers here, on Saturday.

He said leather garment sector is an important industry of the country and more attention should be given to its development. He assured the EPB would provide all possible co-operation for the establishment of this city. Tariq Ikram said exports are increasing every year and hoped it would cross $18 billion and likely to touch $18.5 billion during the current fiscal year.

He appreciated Plgmea for providing training to their workforce by foreign trainers. Earlier, Plgmea (central zone) chairman Chaudhry Ahmed Zulfiqar Hayat said the second training programme for the workforce of the leather garment industry has been completed successfully with the assistance of Korean technicians.

Six Korean technicians in the field of fashion leather garments and motorbike leather garments have been hired to provide training for six months in Pakistan.

The government and EPB had provided major financing for this project whereas participants shared 20 percent of the cost. The total cost of the project was Rs 13.5 million. Three technicians provided their services to the workforce of 13 factories in Karachi and three in Lahore while other three served 16 factories in Sialkot.

He said this programme is a small step in the right direction to improve quality of leather garments being produced in Pakistan and to reduce their costs. "We have to adopt modern production techniques to provide greater value products to our buyers," he said, added we have decided to carry out such training programmes on regular basis." Plgmea acting-chairman Waseem Reyaz, former chairman Fawad Ejaz and others were also present on the occasion.

 

[Owais]

Ethiopian team keen to import auto parts

ISLAMABAD (October 15 2006): A three-member Ethiopian delegation headed by Habte Radish, GM, Mesfin Industrial Engineering PLC visited Engineering Development Board (EDB) headquarters here on Saturday. The delegation showed interest in import of auto parts, three wheelers, tractors and power transmitters etc from Pakistan.

Hadish said that Ethiopia was huge market of 80 million people with no auto industry, therefore, the Pakistani manufacturers can easily make inroads there. He added that his company was interested to have some sort of joint venture with Pakistani manufacturers.

He further said that cement was another sector in which immediate benefits can be made by Pakistan as Ethiopia was producing 1.2 million tons of cement against a demand of 12 million tons. In addition the government has announced a programme of construction of 4,000 houses this year. He invited a delegation of EDB to visit Ethiopia in near future to review the potential of the industry.

Senior officials of the Board briefed the delegation about current policies of the government to increase exports. They assured the delegation that every effort will be made to provide them necessary data Match-making with Pakistani companies will be also arranged.

 

[Owais]

Government striving for long-term economic uplift: minister

ISLAMABAD (October 15 2006): Minister of State for Finance and Chairman of the Competitiveness Support Fund (CSF), Omar Ayub Khan said on Friday that Pakistan was focusing on innovation and competitiveness for long-term economic development.

According to a message received here from Lyon, France, Omar Ayub Khan was speaking at the concluding session of the 9th annual conference of the World Competitiveness Institute (TCI), organised in collaboration with the Chamber of Commerce and Industry Lyon. He also presented Pakistan's vision for economic development and its role as a catalyst in the region.

He announced an 8.4 percent increase in Pakistan's GDP over the previous year and added that this had produced a dynamic effect on the economic development of the country, creating new opportunities for employment and the elimination of poverty.

Omar Ayub Khan said that private sector in Pakistan had been given incentives targeting economic growth and the people increasingly trust the future planning and projects of the Government.

Khan said that the CSF had been established as a joint venture between the Government of Pakistan and the United States Agency for International Development (USAID) to address the economic competitiveness issues of the economy.

Speaking as the keynote speaker on the occasion, the Minister briefed the audience about the economic development policies initiated by President General Pervez Musharraf and Prime Minister Shaukat Aziz. "We are committed to improving the economic competitiveness of Pakistan through innovation and competitiveness", the minister announced.

Khan, who was representing a delegation in the conference consisting of professionals from the public as well as the private sector, said that Pakistan's speeding economic development had increased its energy requirements, and to fulfil these, four mega-dams, including the Kalabagh Dam, would be constructed during the next ten years.

Together they were expected to produce up to 4000 MWs of electricity and would earn the exchequer revenue of $4 billion annually. This had created immense potential in this sector. He added that after 2000, a stable and persistent economic policy had yielded positive results.

He added that, during the past four years, 10 textile projects have invested about $5 billion, the livestock industry was being upgraded and 4 percent of GDP was to be spent on health and education. He continued by noting that the overall economic weightings have swelled to $125 billion in the latest fiscal year, compared to $62 billion six years ago.

The Pakistan competitiveness delegation participated in the other sessions of the conference as well, including the potential of biotechnology clusters in Pakistan, governance and session innovation journalism. The conference was attended by more than 500 experts from various sectors.

Members and new participants joined together to share ideas, build alliances and explore the best modes of economic development. Additionally information was offered about specific clusters, introductory courses on cluster theory and presentations were given by an array of world experts. Omar also met Elisqbeth THION, Vice President of the Chamber of Commerce and Industry, Lyon to promote French investment into Pakistan.

 

[Owais]

'Pakistan tourism to get a boost by organising Buddhist sector'


KARACHI (October 15 2006): Pakistan tourism industry can get a major boost if a comprehensive and tourist-focused strategy is put in motion, and one prime sector is the Buddhist tourist sector, said General Srilal Weerasooriya, High Commissioner of Sri Lanka.

In a meeting with Karachi Chamber of Commerce and Industry (KCCI) President Majyed Aziz, during his visit to KCCI on Saturday he said that Buddhists from all over the world would visit Pakistan to see the Buddhist relics and sites such as Texila, Gandhara and Harappa.

He said that just in Sri Lanka there are 14 million Buddhists and many are keen to visit Pakistan. He observed that last year two delegations of Buddhist priests visited Pakistan for this purpose and suggested that to facilitate the Buddhist tourism, it was imperative that PIA should schedule two weekly flights on the Lahore-Colombo route.

He said that PIA Chairman Tariq Kirmani should take the initiative in this regard. General Weerasooriya further said that Buddhists from Myanmar, Japan and other South Asian countries could come here if an attractive tour package of one week was developed for them. Pakistan tourism officials should work with tour operators to develop the package as well as the infrastructure, he added.

The High Commissioner said that the Pakistan-Sri Lanka Free Trade Agreement had not been as successful as envisioned, as bilateral trade was limited to a few items and not more than $200 million.

He called for more imports of tea from his country and said that Sri Lanka was ready to source textile from Pakistan. He said that the proposed Ceylon Tea Centre to be set up in Karachi was still in the planning stage. General Weerasooriya invited Pakistani investors to set up power plants in his country since there was shortage of power and the returns were very profitable. He said that Sri Lanka was embarking on a program to explore oil and hoped that this would bring fruitful results for Sri Lanka.-PR

 

[Owais]

Wapda row with Shenhua resolved: new tariff to be offered for coal-based plant
KARACHI (October 15 2006): The main impediment between Wapda and Shenhua group has been resolved as the country's biggest power producer and distributor have finally agreed to procure the facility from coal-fired power plants at increased rates.

Sources told Business Recorder on Saturday that the government had re-established contacts with the Chinese group and invited it to resume its work on the 600MW, $500 million coal-fired power plant in Thar. The government had also pressed Wapda to increase the tariff for the coal-fired power producer, which is viable for both parties.

Sources said that a delegation of Shenhua group was due on October 19 on a five-day visit. The delegation, during its stay, would resolve all pending issues including signing of tariff agreement. The new tariff, at what cost Wapda would buy electricity from the Chinese company, has not been revealed so far.

Petroleum and Natural Resources Secretary has called a meeting on October 17 in Islamabad to discuss the issues with Sindh Coal Authority and Sindh Mines and Minerals Department. The meeting would discuss facilities to be provided by the government in Thar, sources said.

They said that President Pervez Musharraf was keen to see the project materialise. He was disappointed over the delay despite his hectic efforts to bring the Chinese company back to work.

The recent developments have shown that the government was very much worried about energy shortages in the country and wanted to utilise resources at the earliest to avoid any power crisis in the country. Sources said that formal announcement about the project would be made during the visit of the Chinese president in November next.

It is learnt that the Chinese group would increase power production from 600MW to 1000MW. If the project talks finalised then the company would start work by year-end, or early next year. The project would be completed in three years. The Shenhua group left the project in 2005 due to dispute about tariff. Wapda's reluctance to offer fair tariff put the plans of the group on hold.

Wapda had offered 5.7 cents per unit power but the group had the stand that since Wapda was paying eight to 13 cents per unit to gas-based, diesel-based and fuel oil-based IPPs, it should increase the tariff for the electricity produced by the coal-fired power plants.