Pakistan Economy - News & Updates - Archive

[Owais]

Workers remit over $1.644 bln in July-October 06


KARACHI (updated on: November 16, 2006, 19:16 PST): Pakistan received $ 1,644.20 million as workers' remittances during first four months (July- October, 2006) of current fiscal year as against $ 1,375.15 million in corresponding period of last fiscal year registering increase of $ 269.05 million or 19.57 percent.

The amount of $ 1,644.20 million includes $ 1.02 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) & Foreign Currency Bearer Certificates (FCBCs).

During October, 2006, Pakistani workers remitted $ 410.61 million as against $ 372.50 million in October, 2005 depicting increase of $ 38.11 million or 10.23 percent.

The inflow of remittances during first four months (July - October, 2006) from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar & Oman), UK & EU countries amounted to $421.76 million, $318.20 million, $ 250.70 million, $ 231.61 million, $ 138.45 million & $ 48.31 million respectively as compared to $ 391.80 million, $ 232.59 million, $ 196.28 million, $ 181.19 million, $ 148.68 million & $ 39.73 million.

Remittances received from Canada, Australia, Norway, Switzerland, Japan & other states during first four months amounted to $ 234.15 million as compared to $ 177.79 million in corresponding period of last fiscal year.

The monthly average remittances for July-October, 2006 comes out to $ 411.05 million as compared to $ 343.79 million in same period of last fiscal.

The inflow of remittances into Pakistan from almost all countries increased last month as compared to October, 2005.

According to break up, Pakistan received workers' remittances during Oct 2006 from USA ($ 109.89 million), Saudi Arabia ($ 75.41 million), UAE ($ 59.88 million), GCC countries - including Bahrain, Kuwait, Qatar & Oman ($ 58.14 million), UK ($ 36.22 million) & EU states ($ 11.88 million) as compared to corresponding receipts from respective countries during October, 2005 i.e. $ 108.47 million, $ 58.27 million, $ 54.56 million, $ 50.40 million, $ 37.72 million & $ 12.88 million.

Remittances from Canada, Switzerland, Australia, Norway, Japan and other countries during Oct 2006 amounted to $ 59.15 million as compared to $ 49.28 million during Oct 2005

 

[Owais]

Rs3 billion mega afforestation plan launched in Punjab


MULTAN (updated on: November 16, 2006, 18:21 PST): Under a federal government directive a mega afforestation plan is being launched in Punjab with an estimated cost of Rs 3 billion.

Sources in the Forest Department told APP on Thursday that federal government has asked the provincial governments to increase one percent forest area in their respective regions.

In the light of this directive, Punjab government has allocated a hefty amount of Rs 3 billion to accomplish the task, sources said.

Under the provincial plan, plantation will be carried out on 15,000 acres in Punjab. Plantation will be done on 20,000 miles long sides of all canals in the province with the aim to increase one percent forest.

Furthermore, in the catchment areas 10,000 acres will also be afforested in the province.

Apart from this, for the purpose of expanding and improving pastures, fodder will be grown on 2,700 acres of land in Cholistan (Bahawalpur), while 100 acres will be afforested and 100 old water ponds will be desilted.

The sources added that two water turbines will be installed at Mauj Garh area of Cholistan (Rohi).

According to the plan, in Dera Ghazi Khan region pastures will be established in six Rakhookh (on state land) and 100 acres will be afforested.

Six turbines will also be installed to provide drinking water for cattle population of the area besides digging of ten new water ponds for the animals and humans.

As many as 2400 embankments will also be erected along the rivers. A bund will also be built to preserve rain water for the cattleheads.

In Thul (Bhakkar, Layyah) area new varieties of fodder will be cultivated on 25 acres of land as nursery for the purpose of research and a research institute will also be set up to achieve the best possible results.

This mega project also covers Potohar (Rawalpindi) region where plants will be grown on 5400 acre of pasture land. A soil conservation scheme is also a part of the Potohar development project, it was learnt.

 

[Owais]

Auto industry development plan finalised

ISLAMABAD (November 16 2006): The government on Wednesday finalised Auto Industry Development Programme (AIDP), which offers five-year pre-announced tariff structure on CKD, CBU, and auto parts for all categories of vehicles, policy and incentives for new entrants and about liberalised import of used cars, establishment of Rs 6 billion fund for competitiveness, technology acquisition, research and development of two auto clusters for establishing the sector on solid grounds.

The draft has been forwarded to the stakeholders ie industry for its comments. The revised draft contains new entrants' policy and import of used cars issue, which were disturbing the local industry and became a bone of contention between the sector and the government, halting local manufacturers' expansion projects.

When contacted, Pakistan Automotive Manufacturing Association (PAMA) refused to comment, saying that as the AIDP deals with two major problems confronting the local industry, nothing could be said before studying it in detail.

The new entrants' policy allows assembly, by new manufacturers, through import of 100 percent CKD (complete knocked down) kit at the rate of duty applicable to non-indigenised parts. However, the new entrants will be asked to provide a commitment to develop and purchase local parts for figment in the locally assembled cars.

'New entrants' means a potential assembler/manufacturer of Car/LCV who has no direct or indirect relationship with the present assembler/manufacturer and had never undertook assembly/manufacturing of cars/LCVs in Pakistan in the past. Companies producing over 500,000 units of cars/LCVs annually in countries other than Pakistan are considered as 'new entrants'.

The government says that the AIDP aims at doubling the contribution of auto industry to GDP to Rs 600 billion in the next five years and reaching an export level of $350 million for components mostly to the international market and to the OEMs. Motorcycles, tractors and cars are expected to identify markets for themselves, thus raising export potential to $300 million by 2011-12.

The plan proposed two auto industry clusters - one in Karachi and the other in Lahore - to enhance inter-firm co-operation and encourage innovation and specialisation in the production and supply chain.

Moreover, the proposed plan also offers Rs 6 billion fund on matching grants for the industry's competitiveness, research and development, and technology acquisition (TAF). It has also been proposed that government technical institutes should be attached with the automobile companies for practical training, similar to 'house job concept' in medical profession.

It has also proposed that the government may waive tax liability on the cost of training, which would be based on quality and number of persons trained by these institutes.

Meanwhile, a statement said that the Engineering Development Board (EDB) has released draft auto industry development programme (AIDP) for stakeholders' comments. It gives details about incentive regime, workable mechanism, procedure and relevant rules on productive asset investments, technology acquisitions, research & development, human resource development, auto cluster and auto industry development committee.

AIDP also proposes certain solutions to the government on used vehicle imports, auto exports, emission controls, strengthening of safety, standards and accreditation, registration and licensing system, road network programme and motor vehicle examination system.

It contains formation of an auto industry development committee with equal composition of public and private stakeholders, which would be responsible for steering the development of auto industry and to examine, certify and recommend the entitlement of proposed incentives for an assembler or a vendor. AIDP also includes auto industry investment policy, commonly referred as new entrant policy, which provides eligibility criteria, benefits and terms and conditions for new assemblers of cars/LCVs.

It may be recalled that EDB has drafted the programme after consultations with the stakeholders, starting with a workshop in March 2006. Its basic objective is to develop the industry on sustainable basis through proposing pre-announced five- year tariff structure on CKD, CBU and auto parts for all categories of vehicles. The EDB claims that the programme will safely steer the industry through to the transitional phase after the introduction of Tariff Based System (TBS).

 

[Owais]

Rs 99.85 million auto parts centre to be completed by year-end

LAHORE (November 16 2006): A project to set up Auto-Parts Support Centre (Cluster Development Centre) would be completed by the end of this year at a cost of Rs 99.85 million, while the Technical Education and Vocational Training Authority (Tevta) would also set up a training institute adjacent to this Centre for the students.

Punjab Industries, Commerce and Investment Minister Muhammad Ajmal Cheema stated this during his visit to Auto-Parts Support Centre being constructed at Quaid-e-Azam Industrial Estate here on Wednesday, an official said.

He said with the completion of the Cluster Development Centre in Lahore the facilities like designing, tools, dies and testing would be made available for this sector.

On this occasion, the minister directed the authorities concerned to expedite construction work so as to complete it within the stipulated period.

Cheema also said that Rs 99.85 million has been earmarked for this project and the provincial government is also setting up such support centres in other cities of the province to prepare skilled force for the industries.

The minister was briefed that 75 percent of civil work of the project has been completed.

 

[Neo]

Musharraf inaugurates Mirani Dam

TURBAT (November 17 2006): President General Pervez Musharraf on Thursday inaugurated the Mirani Dam and sought support of the people of Balochistan against anti-development and retrogressive elements to steer the province into a new era of prosperity.

"I am proud to be inaugurating the Mirani Dam today," the President said of the project he launched in 2002, but was originally conceived in 1956.

The Mirani Dam in Kech area of Mekran district with a catchment area of 12,000 sq. km has been built in four years at a cost of Rs 6 billion that includes Rs 1.5 billion in compensation to the affected people.

It will have a storage capacity of over 300,000 million acres feet of water that could be used for drinking and irrigation of vast barren lands. President Musharraf said he will also inaugurate Subakzai Dam in March next.

He reiterated his resolve to develop Balochistan, saying the government has allocated and would continue to provide resources to improve living standard of the people there. He said the government has initiated many mega projects like Gwadar Port, Mekran Coastal Highway, Kachchi Canal, Subakzai Dam, besides many small-scale development schemes, to bring progress and prosperity to Balochistan which was neglected in the past.

"Balochistan must demand what they need and we are ready to give them," the President said. He said leaders in the past made hollow promises to people, but could not deliver as they neither had the resolve nor the resources to spend on their welfare.

Moreover, he said there were a handful of anti-development elements, which were opposed to Balochistan's development as it directly came into conflict with their own petty interests.

"These elements do not want to see Balochistan develop and progress and want to keep their people illiterate and backward to serve their own interest," he said.

The President sought people's support against these anti-development elements and made it clear that the government would never allow anyone to challenge the writ of the law.

President Musharraf also urged the people to vote for moderate and progressive people in the next general elections who want to take Pakistan forward as a developed country.

"The Election - 2007 is very important and future of Pakistan depends on it," the President said and urged people to reject retrogressive forces. Balochistan Governor Owais Ghani, Chief Minister Jam Muhammad Yousaf, Water and Power Minister Liaquat Ali Jatoi and Social Welfare Minister Zobaida Jalal also attended the Dam's inauguration.

President Musharraf said the Mirani Dam was part of Water Vision - 2025 he had launched in 2002 to plan to meet the looming shortfall in coming years. Under the vision, he said the government will construct many more Dams, including the Kalabagh by 2016. These also include Basha Dam, Munda Dam, Kurrum Tangi and several other water reservoirs.

Pakistan is already facing a shortfall of 9 million acre feet of water that will swell to 30 million acre feet, if no Dam is built in the coming years. "We have to plan today to meet future requirements," he said, while regretting that 35 million acres feet of water go waste every year, as there was no capacity for storage.

Moreover, he said Balochistan was also not getting its share in the absence of canals to channel the water into the province. In this context, he said the government was constructing Rs 40 billion Katchi Canal and Punjab had been gracious to provide land for its 350-km stretch that will pass through the province include quota in reputed colleges and universities for students from Balochistan and their free boarding besides, facilitating admission of children to technical institutions.

He said that 20 children from Balochistan have been accommodated in a first technical school recently opened by the Lahore Corps. The President said organisations like the Pakistan Ordnance Factory (POF) and Kamra have been asked to take people from Balochistan, train and also create job opportunities for them.

On the demand of the local Nazim, the President announced to open two branches of Balochistan University in Gwadar and Turbat. He also promised to provide bulldozers for the area so that development activity could be started there. The President said the government was looking into the possibility of writing off agriculture loans of the poor farmers.

He asked the private sector to come forward and set up factories in the area, which will see a new era of prosperity after the inauguration of the Mirani Dam.

PC Hotel inaugurated: Addressing the inaugural function of Zaver-Pearl Continental Hotel in Gwadar on Thursday night, President Musharraf said that the government is developing Balochistan on priority basis and numerous projects are being implemented on macro and micro levels. He said all these projects would bring a new era in the social and economic life of the people of Balochistan.

Musharraf said in addition to mega projects, the government is also doing a lot on micro level to ameliorate the lot of the common people of Balochistan. Every Nazim in the province has been given Rs 100 million, besides Rs 2.3 billion have been reserved for MNAs and MPAs for small development schemes, he added.

The President said schemes were also being proposed to provide free education, from primary to college level, to talented students of the province in best institutions of the country.

 

[Neo]

Government to restrict import of used cars

ISLAMABAD (November 17 2006): The government was left with no option but to incorporate the local automotive manufacturers proposals in the Auto Industry Development Plan (AIDP) to restrict the import of used cars, which were allowed earlier on the recommendation of the Ministry of Industries and Production to plug the demand-supply gap.

Sources told Business Recorder that the industry in their recommendations took a categorical stance on the issue and convinced the government that the liberalisation of used car imports, primarily allowed to facilitate overseas Pakistanis and to ease the demand-supply gap, was being misused grossly by the second-hand car dealers.

They contented that the liberalised import of used car facilitated car dealers, rather than the common man, who were selling these cars in large number. The industry wanted the government to reduce the depreciation allowance.

The government, accepting the local manufacturers demand, has agreed to cut the depreciation on import value of used cars from two percent to one percent per month besides limiting total depreciation to 25 percent. To check the misuse of Transfer of Resident (TR) scheme, it has agreed to allow only those vehicles import, which are registered in the name of importer for at least one year in the country of residence.

The EDB, in the AIDP, conceded that the used car imports and liberal baggage rules led to high import of buses and trucks. Bus sector has registered negative growth (-7 percent) during last five years despite this era of buoyant growth. This also badly affected the bus body building sector.

It said that the import of used dump trucks and concrete mixers has hurt truck assemblers adversely. Bus/truck assemblers have been utilising only 19 percent of their production capacity due to these misdirected policies and poor controls by regulators. It says that the used vehicles import would not benefit the consumer or the industry and suggested the government for a long-term policy on the issue, which might include strict implementation of TR and baggage rules with compulsory registration of vehicles in the name of returning Pakistanis for at least one year.

 

[Neo]

Larger inflows than outflows help SCRAs rise to $306.2 million

KARACHI (November 17 2006): Larger inflows than outflows helped Special Convertible Rupee Accounts (SCRAs) to rise to $306.2 million on November 14 compared with $304.8 million a day before. Almost entire fresh inflows of $4.9 million originated from USA whose net cumulative flows during the year to November 14 rose to $132.1 million.

A small amount of $0.1 million also poured in from Bahrain which converted its erstwhile $0.6 million negative balance to a positive balance of $0.07 million.

Outflows, on the other hand, amounted to $3.5 million on November 14 and were accounted for by Singapore ($1.9 million), Switzerland ($0.6 million), Hong Kong ($0.5 million) and UK ($0.3 million).

Accordingly, net cumulative flows during the year so far of Singapore, UK and Hong Kong declined to $100.8 million, $90.1 million and $13.1 million, respectively while net withdrawals by Switzerland rose from $28.4 million on November 13 to $29.1 million on November 14. USA, Singapore and UK nonetheless continued to occupy the top three positions.

On the stocks front, the KSE 100 Index moved from 10,744 points on November 13 to 10,869 points on November 14, while the KSE-30 Index moved from 13,177 to 13,357 points on the respective dates. The BRIndex-30 Index, however, registered a gain of 132 points over its November 13 level to reach 11,315 on November 14.

The consistency in the movement in the indices covered indicated that both market capitalisation (used as basis by the two KSE indices ) and turnover of shares (used as basis by the BRIndex) moved in the same bullish line.

 

[Neo]

Russian foreign minister meets Musharraf and Shaukat

ISLAMABAD (November 17 2006): Russian Foreign Minister Sergey Lavrov who was on a two-day visit to Pakistan from November 15, 16 called on President Pervez Musharraf on Thursday. In the economic field, the two sides discussed various proposals related to energy, oil and gas, coal reserves, hydropower, communications and infrastructure.

The President also apprised the Russian Foreign Minister of the Quadrilateral transit in trade Agreement involving Pakistan, China, Kazakhsatan and Kyrghistan.

Talking to Russian foreign minister Sergey V Lavrov, Prime Minister Shaukat Aziz on Thursday said Pakistan greatly values its multifaceted relationship with Russia and is keen to strengthen these diplomatic, political and economic ties and further expand co-operation in a broad spectrum of areas including trade, investment, education, energy and oil and gas exploration. Strengthening of bilateral cooperation, regional and international issues came under discussion during the meeting.

Shaukat Aziz said Pakistan is a peaceful country and does not harbour aggressive designs against any country. "Our defence policy is designed to safeguard our integrity and sovereignty. Pakistan is maintaining its tactical as well as strategic defence capabilities to ensure peace in the region", he added.

Reiterating the need for tangible progress on the Kashmir issue, the Prime Minister emphasised for settlement of the issue in line with wishes and aspirations of the Kashmiris.

Talking of Afghanistan, Shaukat said Pakistan wants to see peace and stability in Afghanistan and is extending all possible assistance to the Afghan government in this regard. He said the world needed to focus more on ensuring sustainable peace in the region.

Underlining the important role played by Pakistan in the region because of its geo-strategic location, the Prime Minister said that uniquely positioned at the confluence of three regions; Central, Western and South Asia, Pakistan is fast emerging as the junction for multiple corridors of co-operation between the three regions involving energy, trade and transportation.

Emphasising the importance of interfaith harmony, Shaukat said the world is needed to work harder to bridge the widening gap between various faiths to make it a more peaceful and harmonious place to live.

 

[Neo]

Pakistan and Russia to activate joint commission

ISLAMABAD (November 17 2006): Pakistan and Russia on Thursday agreed to further expand the co-operation in various fields including trade, economic, oil and gas and defence. Foreign Minister of both the countries met here at the Foreign Office and reviewed bilateral relations and discussed enhancement of co-operation in a number of areas.

Foreign Minister Khurshid Mahmood Kasuri and his Russian counterpart Sergey Lavrov talking to newsmen following the meeting said they discussed regional and international issues of mutual interest.

He said during the meeting they also discussed the issues including Pakistan-India relations and the composite dialogue for resolution of core issues including Kashmir dispute, war against terror, Central Asia, Afghanistan, Middle East peace process, Iraq, Iran etc.

Sergey Lavrov said both the countries have agreed to launch the mechanism to activate Pakistan-Russia joint governmental commission to promote economic and trade relations.

The Russian Foreign Minister said both the countries have also agreed that the Commission should meet regularly to review the ongoing projects and issues and explore possibility for further avenues of co-operation.

The Foreign Minister said the bilateral trade has more than doubled last year to over $500 million. He said the visits of trade delegation from Pakistan to Russia and economic delegation from Russia to Pakistan in September, 2006, have helped identify specific areas of co-operation and both sides are keen to follow up on that.

Kasuri said Pakistan and Russian Federation enjoy friendly and co-operative relations, based on a common desire to promote peace, prosperity and stability in their respective regions, and the world.

Kasuri said, "We had constructive and fruitful discussions" adding that "We consider Russia as an engine for increased economic growth and a factor of peace and stability in the Shanghai Co-operation Organisation (SCO) region and it is satisfying to see the steady growth in the multi-dimensional relationship."

The Foreign Minister said bilateral contact has increased substantially and the Joint Working Groups on bilateral co-operation, strategic stability and counter terrorism met early this year.

 

[Neo]

10-12 percent growth in energy requirements: Shaukat

ISLAMABAD (November 15 2006): Prime Minister Shaukat Aziz on Tuesday said Pakistan's energy requirements are growing by 10 to 12 percent annually and the government is working to harness the huge potential, of the country in oil and gas exploration sectors to maintain the momentum of high growth.

Talking to a delegation of Kuwait Petroleum and MOL, the National Company of Hungary who called on him here at the PM House, the Prime Minister said encouraged by the consistency and continuity of policies and transparency of procedures a number of world renowned companies are investing in the oil and gas sectors in Pakistan.

He said as result of the high growth momentum and improvement in the living standards there is surge in demand in the energy sector in Pakistan. The government, the Prime Minister said is working to enhance the country's indigenous capacity and also looking into possibilities to import energy from other countries.

He said Pakistan is in an ideal position to serve as the regional energy and trade corridor because of its geo strategic location.

An oil refinery, which will refine 300,000 barrel oil per day, being set up near Gwadar by a company of Abu Dhabi, will facilitate oil export in the region, the Prime Minister added.

The government, the Prime Minister said is facilitating investments and a level playing field has been provided to the local and foreign investors. He said transparency is the hallmark of the government's policies, which has restored the confidence of the investors and record high investments are flowing into Pakistan from all parts, of the world.

Badar N Al Khasti, chairman of the Board of Kuwait Petroleum said his company, which is operating in fifteen countries of the world in oil and gas exploration sector, has long term plans for doing business in Pakistan and is working on projects to invest in Pakistan.

Zoltan Aldott, chief executive exploration and production, MOL, Hungary said that MOL which is the leading oil exploration company of Hungary finds the investment climate in Pakistan as conducive and desires to expand their business here.

 

[Neo]

Plan to develop competitive food industry

ISLAMABAD, Nov 16: The Competitiveness Support Fund (CSF) has decided to develop an effective food processing industry in Pakistan by proposing viable recommendations aimed at removing critical bottlenecks and obstacles hence making the sector internally and internationally competitive.

CSF, which is a joint initiative of the ministry of finance and the United States Agency for International Development (USAID), will launch a study to give clear policy recommendations to the Pakistan government on how industry should be structured and how competition can be fostered.

Given its geographic location and natural endowment, the fund officials believed that there were good reasons that Pakistan should develop a competitive food processing industry.

Pakistan is ideally located for trade with the Middle-East, China and India. To capitalise on these advantages, the country must focus on the twin aspects of competition and technical innovation, or at least the ability to catch up with and adopt advanced food processing technology, and development of market conditions that encourage investment, both domestic and foreign.

A policy analysis on competitive aspects of the food processing sector in Pakistan will be carried out.

The CSF will work on the study with all the keys stakeholders dealing with the sector, including the government agencies, private sector representatives and the educational and research institutions in Pakistan.

The CSF, which is based on international best practices (prevailing in India, Thailand, Turkey, Ireland, Finland etc) and has been tailored to the current Pakistani economic environment to strengthen and make the private sector more competitive and to improve the policy framework needed for innovation-based competitiveness.

Pakistan is primarily an agricultural country with a high proportion of its population living in rural areas. Agriculture and fisheries provide the raw material for an extensively developed food processing industry that accounts for between 25 and 30 per cent of the GDP.

With a host of sub-sectors it is the largest industry in Pakistan, and it continues to grow as the use of processed food becomes popular, particularly in the cities. The list of sub-sectors includes beverages, dairy, fruits and vegetables, snack foods and cereal-based foods (wheat and rice), meat, confectionery and vegetable oil (including vegetable ghee).

In this respect, the success of the Pakistani food industry, the CSF argues, depends on wider aspects of the economy and of governance.

The food processing sector depends on a highly vertical integrated structure. The study of the competitive advantage of the food processing sector will take into account the entire industry structure and the value chain, including the supply of raw material, its intermediate processing, the core industry itself and the market environment, both domestic and external, along with other essential inputs.

It will also examine the structure of key sub-sectors, including a value-chain analysis of primary post-harvest processing through secondary to tertiary processing, comparative costs of production within the value chain, import parity pricing and technical and innovation aspects of individual sub-sectors, including factors affecting adoption of technology.

A fundamental aspect of this approach is to understand the basic advantage (or disadvantage) with which the specific industry is endowed.

On the marketing side, the study will look into packaging, eco-labelling, design, distribution and market access.

 

[Neo]

More cargo service for India may hurt Pak industry

Authorities reluctant to agree on freight train via Khokhrapar as influx of industrial products is much easier from this side compared to Wagah

KARACHI: India has demanded two separate cargo train services from Pakistan in a move believed to facilitate its goods transportation to Pakistan, which the local authorities fear may cause serious damage to local traders and industry.

A senior official said the high ups of the two sides met recently in India to resolve decades-old railways-related issues between the two countries, which concluded with several suggestions and proposals from both sides and cargo trains demand exclusively from the Indian railway authorities.

“They (Indian railway authorities) want a separate cargo or freight train from Lahore and similarly the same kind of full-fledged cargo service via Khokhrapar,” said Ali Arif, Additional General Manger Freight Pakistan Railways.

“We have assured the Indian authorities to consider such request after fixing issues of more importance like passenger service and other matters.”

He said the country’s railways authorities were more concerned about smooth operation of passenger service before allowing cargo operations from the two sides but still it would take all considerations into account before reaching any conclusion.

India and Pakistan in February this year agreed to revive the Khokhrapar-Munabao train service, severed in 1965 war between the two countries. The Pakistan Railways spent Rs1 billion for the replacement of 135-kilometre meter gauge track with broad gauge from Mirpurkhas to Zero Point (border), 8-kilometere from Khokhrapar.

The two sides did not rule out freight services on this route at a later stage but currently the authorities appear firm that such service may not be allowed without the consideration of local traders.

“It may be more beneficiary for Indians rather Pakistanis,” said Arif of Pakistan Railways, who recently returned from India after holding talks on different issues. “So more important issue for us, is facilitation for passengers of two sides through good and smooth service.”

He said currently a single freight train was being operated via Wagah-Attari border daily, which appeared more than enough as per local needs of the traders and an additional service could damage the balance.

Trade volume between India and Pakistan started rising last year after the federal government allowed import of essential food items from the neighbouring country through land routes to cap the rising prices of the food items through increased supply.

Traders of the two sides believe the volume of bilateral trade may touch $10 billion-mark within next five years tilting mostly in favour of India after a recent thaw in relations between the two nuclear-armed neighbours.

Although border trade is yet to start at Khokhrapar, businessmen and traders fear that it would be damaging for the local business interests, as cheap Indian products would flood local markets, with Karachi is the likely influx of cheaper Indian consumer goods.

“Ahmedabad is just 100 miles from Munabao, Soorat is 150 miles from Ahmedabad and Mumbai is 150 miles from Soorat which means that influx of industrial products is much easier from this side as compared to Wagah border,” said a local trader.

He said that many smart Indian businessmen were stationed close to the Pakistani border and the neighbouring Marwari, Gujrati, Soorti, Juna Garhi and Mumbai tycoons all had access to Pakistani market through Khokhrapar.

 

[Neo]

Offsetting Indo-US N-deal to Islamabad’s advantage

Hu poised to offer Pakistan N-plants

* Analysts and diplomats predict Beijing ready to build six nuclear reactors
* Chinese and Pakistani officials keeping mum on accord

BEIJING: Chinese President Hu Jintao was expected to unveil an extensive nuclear cooperation plan with Pakistan during his visit to Islamabad next week, analysts and diplomats said on Thursday.

On the first trip to Pakistan by a Chinese president in a decade, Hu, they said, was likely to announce Beijing’s intention of helping Islamabad construct six nuclear plants over the coming decades.

“The political intent is quite certain. The specifics are less certain, but this will be a political gesture above all,” said one diplomatic observer in Beijing, speaking on condition of anonymity due to the official secrecy around discussions.

However, Chinese officials have not given any word of any nuclear deal being concluded during the visit, while Pakistan’s Foreign Office spokeswoman, Tasnim Aslam, said that no new deal was imminent.

According to the Beijing-based observer, Pakistan has asked China to build up to six reactors of 600- or more megawatts, at least twice the size of the 300-megawatt reactor that China built at Chashma, in Punjab.

The broad agreement appears likely, however, to leave the scale and specifics of cooperation for future talks - and also leave open whether China, with its own bold plans for expanding nuclear power, can spare the expertise to back Pakistan’s expansion.

But even a vague agreement will remind the world that China values its “all-weather friend” Pakistan, even while Beijing courts India, a sometimes bitter rival of both countries. Hu will visit India before Pakistan.

“Pakistan has been eager for a nuclear deal and raised it a number of times,” said Zhang Li of the Institute of South Asian Studies at Sichuan University in southwest China.

“I think there are signs that Hu will make an announcement during this visit to show relations are developing in a healthy direction.”

An announcement during Hu’s visit would cap intense lobbying from Islamabad, eager to expand nuclear ties with Beijing and offset India’s influence and the Indo-US civilian nuclear energy plan and showcase that it does not lack other sources of support.

China’s Foreign Ministry would not directly say whether Hu would announce a deal during his visit, saying only that Beijing wanted to build on the two countries’ current pact on nuclear energy cooperation.

“This visit will play a major milestone role,” spokeswoman Jiang Yu told reporters. “We’re willing to expand cooperation with Pakistan within the framework of this agreement.” The Beijing-based China Business Times reported in August that China was likely to announce in November that it would sell Pakistan six 300-megawatt plants.

China has said any nuclear cooperation would be for peaceful purposes only and would accept international safeguards.

But a nuclear agreement may rankle Washington, worried about China’s atomic exports, especially after Pakistan’s chief nuclear scientist, Dr AQ Khan, admitted in 2004 that he had sold nuclear know-how to Iran, Libya and North Korea. Before China joined the NPT in 1992, it helped Pakistan develop nuclear weapons, the United States has said.

An American official said on Monday that US President George W Bush might raise worries about Pakistan’s nuclear programme with Hu on the sidelines of the Asia-Pacific Economic Cooperation (APEC) meeting in Vietnam this week.

http://www.dailytimes.com.pk/default.asp?page=2006\11\17\story_17-11-2006_pg1_1

 

[Neo]

Friday, November 17, 2006

‘Pakistan needs better IT infrastructure’

LAHORE: Pakistani businesses are facing severe challenges in the international market competitiveness due to lack of a proper IT and e-commerce infrastructure.

“Only technology can help Pakistani businesses to come at par with their counterparts in other countries,” Project Director Industrial Information Network (IIN), Salman Khalid said while speaking at an IT conference organised by Oracle Pakistan at a local hotel. IIN, Pakistan’s first Business-to-Business (B2B) portal has jointly been developed by Small and Medium Enterprise Development Authority (SMEDA) and Ministry of Information Technology and Telecommunications.

Salman Khalid said that IIN was presently facilitating the textile and leather sectors, adding that more sectors would be added in the days to come. He said that IIN was working on the promotion of use of B2B e-commerce within the country and utilise information technology to link businesses with international buyers, suppliers, trade facilitation bodies and the government institutions. “Hopefully, IIN will act as a catalyst to trigger a ripple effect and usher a paradigm shift in the way businesses are currently operated in Pakistan,” Salman Khalid said.

 

[Owais]

Musharraf says Gwadar Port operation encourages sea farers


GWADAR (updated on: November 18, 2006, 03:07 PST): President Pervez Musharraf said on Friday the world best port operators would be brought in to initiate operation at Gwadar port for making it popular among sea farers.

Addressing a gathering after performing the ground-breaking ceremony of a labour colony constructed jointly by Federal Ministry of Labour and Manpower and the Workers Welfare Board, he said this exercise was necessary as otherwise the desired results could not be achieved.

The president said there would be investment, employment and increased economic activity and prosperity in the region when the port becomes functional and offers competitive service to the coming vessels.

Gwadar Port, Musharraf said, would be linked with Central Asian Republics, besides linking it with Coastal Highway, RCD Highway, Indus Highway and Karachi Coastal Highway, while a railway link with the entire country was being given active consideration.

He announced a number of steps for educating the youth from Balochistan, providing them with technical training and employment.

President Musharraf called upon the youth from Balochistan to learn some technical skills. They should learn some technical work for better emoluments, better employment and better future, the President said adding that education needs to be promoted in Balochistan for its speedy development.

"I have contacted a number of reputable institutions all over Pakistan for training the youth from Balochistan", he said. The IVth Corps, Lahore has already initiated a number of technical training programmes for youth from the province where they were being imparted three to six months training in welding, electrical work, plumbing and computer skills", he added.

The president advised the youth that "Today's era is of technical expertise and you must learn a skill and move forward."

He called upon the youth to acquire technical education.

The president announced scholarships for brilliant children from Balochistan in cadet colleges, higher education in universities and professional colleges for youth from the province. He also announced that all post-graduates from the province would be given contract employment and paid Rs 10,000 per month.

Every thing would be done for Balochistan and its people and they should also reciprocate by denouncing terrorist elements, Musharraf said.

He said recently three Chinese engineers were targeted and rockets were fired. This shall not happen, as it would stall the development of the province, he said asking the people to identify the terrorist elements.

Responding to slogans against terrorism raised by the people, president Musharraf said terrorism would not be allowed to hamper development efforts of the government.

He handed over confirmation letters to 45 employees of the Gawadar Development Authority (GDA) and said 35 other employees of technical cadre would soon be recruited.

The President asked the people to decide about their future on their own and not to allow others to decide their fate. Nothing was done for the people of Balochistan by the previous leadership and they wasted the resources or misused it for their own benefits, he added.

He said the people should differentiate between the leadership which was sincere to the cause of people and those having selfish aims.

President Pervez Musharraf said it is true democracy now and the people should exercise their right of franchise with extreme caution and vote the people who are for democracy and for development.

Referring to the labour colony project, Musharraf said it was planned for the poor people. He asked the provincial government to ensure that deserving people got houses. He also gave a patient hearing to a group of women after the function who had submitted their applications.

Chief Minister Balochistan Jam Muhammad Yousuf in his brief address said the dream of development of Balochistan could not be transformed into reality without the President Pervez Musharraf.

Federal Minister for Ports and Shipping Senator Babar Khan Ghauri addressing on the occasion said 100 per cent vacancies of Gwadar Port have been filled with local people.