Pakistan Economy - News & Updates - Archive

[Neo]

Sunday, November 26, 2006

Pakistan loses 1,700 physicians a year to other countries

* In Feb 2006 Pakistan had 18,000 registered specialists
* Pakistan will have about 150,500 physicians in 2020 for 208.4m people
* Pakistan has 1.95% of the world’s medical schools

Daily Times Monitor

KARACHI: Brain drain has been a chronic problem for Pakistan over the years. However, a new study of the phenomenon in medicine has revealed that Pakistan is the third leading source of international medical graduates (IMGs) in affluent countries.

Jamsheer J. Talati and Gregory Pappas published their findings in an article titled ‘Migration, Medical Education, and Health Care: A View from Pakistan’ that appeared in ‘Academic Medicine. Impact of International Medical Graduates on U.S. and Global Health Care: Proceedings of the 50th Anniversary Invitational Conference of the Educational Commission for Foreign Medical Graduates’ in December 2006. They pointed out that 60 percent of IMGs in the United States and 75% in the United Kingdom originate from poor countries. Most physicians practicing in Pakistan are graduates of Pakistani medical schools or reentering migrant citizens. Combined, the 39 medical colleges in Pakistan produced an average of 5,038 physicians per year from 2000 to 2004. In 2000, 50 physicians migrated into Pakistan with the MBBS or an equivalent degree and no postgraduate qualification; this number reached 395 in 2004. These graduates were trained in China, the Philippines, the Caribbean, and former Russian Republics. The PMDC has recognized five Chinese medical schools.

Combined, the number of graduates from Pakistan’s medical schools and number of reentering IMGs can be reasonably expected to reach 6,800 per year as schools mature. Since 1960, Pakistani-trained physicians have assumed teaching posts in medical colleges after their postgraduate medical education abroad. At the Aga Khan University Medical College (AKUMC), 63% of faculty in professorial ranks have foreign qualifications.

As of February 2006, Pakistan had 18,029 registered specialists. Many returning specialists may not have registered themselves as the CPSP alone has certified 6,418 members (MCPS) and 7,329 fellows (FCPS) since its inception in 1962.

The number of medical colleges doubled from 1997 to 2005 despite a dearth of teachers, facilities, and teacher training institutions for medical colleges. The number of students entering medical colleges increased from 400 (in four medical colleges) in the 1960s to 4,239 (of whom 3,552 qualified) in 16 colleges in 1981. Since the first private medical college, AKUMC, was established in 1983, 18 other private sector colleges have been established. Class size, at times exceeds 300 in some public institutions. Fortunately, access to medical education is not limited by poverty or educational or geographical disadvantage. Although the total cost of providing the five years of medical education is U.S. $100,000, students are charged tuition of U.S. $833 at public colleges and U.S. $10,000–35,000 at private colleges.

Causes of physician loss include emigration and cessation (or diminution) of practice for a variety of reasons, including migration.

The researchers estimate that 1,700 physicians per year are lost from the pool of practicing physicians. The Bureau of Emigration and Overseas Employment estimates that annually about 1,000 to 1,500 physicians leave the country, of whom 10–15% return, for a net migration of 900 to 1,275 physicians. They can account for 1,150 emigrating physicians per year. Of this number, they estimate that 418 (the number starting graduate medical education in 2004 according to the Association of American Medical Colleges’ GMEtrack database to 500 emigrate to the US. As 4.4% of IMGs in the United Kingdom are from Pakistan, and there were 4,185, 4,325, and 5,904 IMGs in the United Kingdom (2000–2002), they have calculated expected annual emigration to the United Kingdom as 260. They extrapolated that 16 emigrate to Canada annually and 6 to Australia. However, they know that 1,061 and 367 candidates have attempted the Medical College of Canada MCCEE and MCCQE qualifying Part 2 examinations, respectively, indicating a possibly higher rate of migration to Canada.

The flows to Arabic-speaking nations (ASNs) are probably about 350 annually; 300 a year have emigrated to Saudi Arabia alone. There are an estimated only 31 fellows in the ASN and 38 in other countries.

Although as reported in 2005, 12,813 physicians from Pakistan were in the United States, the United Kingdom, Australia, and Canada, they cannot determine the total number in ASNs. It was assumed that there were 25,000 graduates outside Pakistan, implying that there were 12,200 emigrants in countries other than the above four, chiefly in ASNs. At least 3,000 are accounted for: 2,000 in Saudi Arabia and 1,000 in the Persian Gulf states. They assume that this outflow will continue. An additional 20,000 Pakistani doctors are required in Saudi Arabia.

Because of marriage, childbearing, and family, a sizeable number of women graduates are not practicing; anecdotal estimates of the percentage range from 5% to 50%. On average, 50% of those admitted to medical school are women; however, despite a higher pass rate for women than for men, as of December 2005 only 38% of registered physicians are women. Altogether, these causes result in loss of 370 physicians from practice.

They estimated that 73,890 physicians were practicing in Pakistan in December 2005.

The net annual physician gain is 5,100, as 6,800 physicians are produced and 1,702 lost. They assumed a static rate of production of about 6,000 MBBS graduates annually. The number of IMGs (mostly Pakistani IMGs) coming to Pakistan, is projected to be static at 800 per year. They therefore predict that Pakistan will have approximately 150,500 physicians in 2020.

Whereas the supply of physicians in Pakistan is somewhat predictable, the level of demand is less certain: Pakistan’s population is growing rapidly, and at medium growth rates, it will reach 173.6 million in 2010, 191.4 million in 2015, and 208.4 million in 2020. Life expectancy had increased to 62 years by 2004, from 45 years in the 1950s. A total of 6.7 % of the population was older than 60 years (in 2005). The economy is expanding rapidly.

Migration significantly depletes poor countries, but for Pakistan, with an anticipated shortfall in the year 2020 of 58,000 to 451,000 physicians, depending upon population demands, a total ban on migration, even stemming the loss of 1,500 emigrants per year, would still leave a deficit of 35,400–428,600 physicians in 2020. The United States had an IMG force of 10% in the 1960s, 18% in 1970, and 25% in 2002. The top 10% of Pakistani physicians are high achievers (some with United States Medical Licensing Examination scores in the 99th percentile).

The total health expenditure of Pakistan (2004) was 2.4% of the gross domestic product. There were 2,000 medical schools in the world (in 2003). Pakistan has 1.95% of the world’s medical schools. It has about 2.55% of the world population, and 39 schools, for a ratio of four million people per medical school.

Information was obtained from multiple sources, including the Pakistan Medical and Dental Council (PMDC) and College of Physicians and Surgeons (CPSP); publications indexed in PubMed; migration surveys; news items; annual publications of the Mehboob-ul Haq Human Development Center; the Web sites of the United States Agency for International Development, the World Health Organization, and the Government of Pakistan; and working papers for conferences.

http://www.dailytimes.com.pk/default.asp?page=2006\11\26\story_26-11-2006_pg7_10

 

[Neo]

Sunday, November 26, 2006

$7 billion needed for dams

* Sindh, NWFP to be taken into confidence over construction of major water reservoirs
* Dams on top of agenda for next CDWP meeting

By Fida Hussain

ISLAMABAD: The construction of Kalabagh, Diamer-Basha and Akhori dams will cost Rs 1.027 trillion, and the federal government will require Rs 432 billion, or $7.2 billion, in foreign funds for the completion of these projects, a senior government official told Daily Times on Saturday.

The federal government has decided to take Sindh and the NWFP into confidence over the construction of major water reservoirs, to formally take these projects for funding to international financial institutions (IFIs).

The official said that this would be the first step by the government in its bid to persuade IFIs to fund the projects.

He said that unless “we reach a consensus with Sindh, NWFP and other stakeholders, the federal government cannot take up the funding issue with IFIs”.

Sindh and NWFP have strong reservations over the construction of Kalabgh Dam, and this is the main obstacle to the government’s plan to take up the funding issue with the World Bank (WB) or the Asian Development Bank (ADB).

Keeping this in view, the government has decided to bring the stakeholders together and brief them on these projects.

These projects are on the top of the agenda that has been finalised for a meeting of the Central Development Working Party (CDWP) next week.

The official said that the CDWP meeting would not seek approval for allocations to these projects. The total cost of the Diamer Basha project has been estimated at around Rs 390.7 billion, Kalabagh Dam at Rs 370.5 billion and Akhori Dam at Rs 267 billion.

The estimated foreign exchange component (FEC), which often comes in the form of financial assistance from IFIs and donor agencies, is Rs 178 billion ($2.96 billion) for Diamer Basha, Rs 170 billion ($2.8 billion) for Kalabagh Dam and Rs 85 billion ($1.4 billion) for Akhori Dam.

The official said that these projects were deferred at the last CDWP meeting because of strong opposition from Sindh. The federal government has formed a committee to give a detailed report on these dams to the CDWP because of the provinces’ opposition. Apart from these three schemes, the CDWP meeting will take up projects of engineering design and preparation of tender documents for the Diamer Basha project, a Rs 188 million project for the installation of additional gas turbines at GTPS Shahdara, and the Rs 21.08 billion Chashma Hydropower Project.

http://www.dailytimes.com.pk/default.asp?page=2006\11\26\story_26-11-2006_pg7_7

 

[Owais]

China to transfer indigenous iron ore steel making technology: Pakistan


ISLAMABAD (updated on: November 27, 2006, 15:47 PST): A Memorandum of Understanding was signed here on Monday between Chinese Company MCC-Beris and Mughal Steel in the presence of Mr. Jahangir Khan Tareen, Minister for Industries, Production and Special Initiatives.

It covers transfer of technology for making steel from indigenous iron ore reserves.

The match making between the two companies was done by Engineering Development Board.

The Chinese Metallurgical Construction (Group) Corporation Baotou Engineering and Research Corporation of Iron and Steel Industry and Mughal Steel have agreed on a commercial project of Section Mill and 500m3 Blast Furnace.

It also envisages a visit of Pakistan Steel delegation consisting of prominent private sector key players to China.

With the completion of the project present production capacity of Mughal Steel will increase to 1 mtpy with modern equipment and automation and control system, widen products range and improve quality.

Both sides have recognised the importance of optimum utilisation of the facilities and services available in Pakistan. The Chinese firm will also arrange training for Pakistani Engineers and Technicians. The project is planned to be completed by end of March 2008.

Addressing on the occasion the minister highlighted the significance and salient features of the MoU and said that it was first agreement of its kind between two steel making organisations of China and Pakistan.

Imtiaz Rastgar, CEO, EDB, senior officials of the Ministry and Board were also present on the occasion.

 

[Owais]

Short-term steps not in conformity with tax reform objective: World Bank

ISLAMABAD (November 27 2006): The World Bank report on assessment of taxation system has observed that the short-term measures, taken by the Central Board of Revenue (CBR) to increase revenue collection, are not in conformity with the desired objective envisaged in the reforms.

Sources told Business Recorder on Sunday that the WB has submitted the assessment report on tax policy matters to CBR. In the first phase of technical assistance program, Professor Jorge Martinez Vazquez, Georgia State University, visited Pakistan and submitted the preliminary report, 'Preliminary assessment of tax system in Pakistan'.

The report concluded that there was need for medium- and long-term tax policy reforms in Pakistan.

It observed that, "short term stopgap measures, taken in an attempt to increase revenue collection, lack coherence. They frequently ignore other desirable objectives of tax system such as simplicity or distributional consideration".

In the second round of technical assistance program, Kaspar Richter, World Bank Senior Economist would work on modern long-term tax policy reforms in Pakistan.

Sources said that the WB has given a detailed preliminary assessment of the tax system and also compared it with the taxation models of countries having similar economic situation. The assessment also focused on analysis of the tax-to-GDP ratio and documentation of Pakistan's economy.

The CBR will discuss WB suggestions in an upcoming meeting during this week.

Meanwhile, the CBR and WB review mission would discuss key areas of the Tax Administration Reform Project. This includes establishment of Regional Tax Offices (RTOs), Human Resource Management Plans; Integrated Tax Management System, Customs Automation Plan and project management.

 

[Owais]

Textile sector seeks cut in energy costs, interest rates


FAISALABAD (updated on: November 27, 2006, 17:02 PST): Pakistan's textile industry, struggling with stiff competition, fears a further erosion of its global market share unless the government provides subsidies to help offset production costs.

Textiles are the mainstay of Pakistan's economy, accounting for about 60 percent of the country's total exports in 2005/06, and contributing 8.5 percent to its gross domestic product (GDP).

The industry employed 38 percent of the total manufacturing work force.

But textile exports fell 9.11 percent year-on-year to $3.23 billion in the first four months of the 2006/07 fiscal (July-June), and analysts say the trend could hurt overall growth.

The sector has been struggling to compete with Chinese, Indian and Bangladeshi products that are eating into its market share, primarily because of lower prices.

"Our production costs have become very high compared with others due to high energy costs, rising interest rates as well as an increase in wages," said Mian Mohammad Latif, chairman of Chenab Ltd.

"Governments around the globe support their export industries by providing relief. If we don't support our industry, we will be left uncompetitive," said Latif.

Chenab is one of Pakistan's main textile producers, with annual exports worth more than $100 million. It employs about 15,000 people in Faisalabad, Pakistan's main textile city.

Pakistan's export industries, of which textiles are the main one, have suffered because of the international war on terrorism. Many foreign buyers have shunned the country because of fears of militant violence.

Nevertheless, most analysts are hopeful the Pakistani textile industry, which has seen investment of more than $6 billion in recent years on modernisation, can flourish in the quota-free regime in place since 2005.

PROBLEMS, REMEDIES

Rising interest rates and high energy costs are a heavy burden but Anwar Sajjad, director of the Arshad Group, another Pakistani textile exporter, said the industry was not seeking subsidies.

"What we want is relief on energy prices, as that's about 20 percent of costs, as well as soft interest rates," he said.

"We took bank loans to import machinery and invest at about 4 percent, and that now stands at over 12 percent, making it a very high cost."

A flood of Chinese fabrics into the domestic market is alarming some Pakistani producers. But bigger manufacturers say the Chinese imports are mainly silk and polyester, not cotton, so the threat is not so serious.

The government says it is concerned.

"We are aware of the issues facing the industry and have already formed a committee to look into the problems and suggest remedies," said Textile Industries Minister Mushtaq Cheema.

Cheema, a textile mill owner, said he had requested a meeting with the prime minister to discuss the findings.

"We're hopeful the prime minister will look favourably at the suggestions and some relief measures will be announced."

Time was of the essence, said Chenab's Latif.

"We're already very late and don't have time. Any steps taken today are positive but if we delay further they'll be no use," he said.

"The base of Pakistan's economy is textiles, and if that is failing, all government policies, fiscal or monetary, are bound to fail as well."

 

[Owais]

478 million acres land to be brought under wheat cultivation: DCO


SIALKOT (updated on: November 27, 2006, 16:18 PST): As many as 478 million acres of land will be brought under wheat cultivation in the district during the current season, an official said here on Monday.

"One million acres of land had so far been brought under wheat cultivation in Sialkot, Daska, Sambrial and Pasrur tehsils" said DCO Maj (Rtd) Rizwan Ullah Baig.

He said under the special directive of the Punjab government, local agricultural department had launched a special training programme with a view to enhance the per acre yield, besides, equipping farmers and wheat cultivators with latest farm technology in 1451 villages of Sialkot district, a hub of producing the best quality bumper wheat yield.

The official experts of agriculture department informed the cultivators about the seeds, their treatment, time of sowing and balanced use of fertilisers and pesticides.

The DCO said that the said training programme would certainly prove helpful and supportive in increasing per acre yield of wheat, sunflower, potatoes and other crops, besides, enabling the growers to attain healthier results as well as pave a way for achieving more yielding results.

 

[Owais]

$236 million ADB funded Road Safety Education Program launched in Sindh


KARACHI (updated on: November 27, 2006, 16:06 PST): Road Sector Development Directorate, Sindh Works and Services Department and Sindh Education Foundation on Monday launched Pakistan's first Road Safety Education Program for the province with a cost US $236 million funded by Asian Development Bank (ADB).

The aim of program is to educate children, assist teachers and community members and inform pedestrians and other road users on the essentials of road safety.

US $231 will be spent on construction of 164 km provincial highways and 1200 km farm to market roads while US $5 million will be used for reform and safety awareness programs.

Sindh Minister for Mines and Mineral Development Irfanullah Khan Marwat was the chief guest of the event. Sindh Minister for Works and Services Pir Sadruddin Shah Rashdi, Sindh Minister for Women Development Dr. Saeeda Malik, Sindh Chief Secretary Fazal-ur-Rehman , MD Sindh Education Foundation Prof. Anita Ghulam Ali, Advisor to Sindh Chief Minister Fatima Surria Bajya, EDOs and teachers from all over the province were also present.

Marwat appreciated the participation of the ADB in this program and said that government was also committed to move forward and take initiatives for safety of masses. He also appreciated the efforts of RSDD and Sindh Education Foundation and assured all possible support in this regard.

Speakers on the occasion indicated that due to lake of road safety education, road accidents were a major and growing cause of death and injury to children in developing countries like Pakistan and urged educational institutes to create awareness and start teaching their students about road safety as our young one were less aware of the potential hazards around.

They also stressed on parents to play their role in guiding their children on the proper usage of roads.

Prof. Anita Ghulam Ali said that road safety was an issue that needed to be addressed. She said that in order to avoid tragedy, we must ensure that we keep up efforts to educate young to start practising road safety from an early age.

She said that the Road Safety Program was an initiative that would also strive uphold the life and dignity of children.

She said that it was crucial to teach young for making good road safety behaviour as part of their daily life.

Anita said that responsible driving could save lives and reduce the occurrence of road accidents. She also urged school and other education institutions to start teaching about road safety and traffic rules to their students.

Ajaz Ali Khan, DG Road Sector Development Directorate, Sindh Works and Services department told that in Pakistan about 5000 people die in road accidents every year in which 20 percent of all such deaths were under 15 years of age.

He said that by 2020 road accident would be the third leading cause of death in the world.

He said that due to lake of road safety awareness, road deaths and injuries were increasing at a faster pace in Asia then other regions of the world. He said that road accident trends in the country were also on rise and needed to be addressed by comprehensive road safety programs.

Technical Co-ordinator RSEP, Daman Bozar informed that road safety program would be implemented in 100 schools of the province. Increasing skills of teachers to impart road safety training by developing curriculum, improve knowledge, raising awareness of parents, community members and involve them in educational activities were motives of the program, he said.

 

[Owais]

OGDC GDRs to fetch $1.5 billion

ISLAMABAD (November 27 2006): The government will fetch $1.5 billion from Oil and Gas Development Company (OGDC) global depository receipts (GDRs) as its books' building process has been well received in the international market.

The officials in Islamabad say that initial reports on books' building were indicative of GDRs oversubscription. They, however, add that the exact GDRs' size will be decided after getting full picture of the books' building process.

Talking to Business Recorder on Sunday an official said: "The GDRs offering has been well received by investors in the international market and we believe that it's going to oversubscribed".

He said that the response had improved officials' confidence level in Islamabad and they are confident to fetch $1.5 billion from the transaction.

After taking into account the pros and cons of GDRs transaction, the government had opened the books' building process for the investors from November 15 to its close on November 30.

Before opening of books' building process, the officials in Islamabad had announced at a press conference that in case of over-subscription the government would use the option of green-shoe for GDRs offering.

As the books' building process in on, an OGDC team is holding company road shows in USA, UK, Singapore and Dubai to give the investors a good idea of the company profile and contribution in Pakistan's oil and gas production. The company road shows are going to conclude by the end of the current month.

The company road shows are actually a follow-up of the country road shows held sometimes back.

The policy makers claim that the country road shows were a great success and they were going to pay Pakistan a good dividend in the form of good response for OGDC GDRs.

 

[Neo]

90pc privatisation proceeds to be used for debt retirement


ISLAMABAD, Nov 26: The Ministry of Finance has issued ‘standing instructions’ to the State Bank of Pakistan to automatically retire government debt to the extent of 90 per cent of privatisation proceeds without seeking further guidance from the ministry on individual basis.

The instructions have apparently been issued following objections raised by the audit department which reported to the Public Accounts Committee last week that the privatisation commission kept privatisation proceeds in a separate account and termed the practice “imprudent and unconstitutional”.

Earlier, the Finance Ministry used to formally advise the SBP to apply 90 per cent of the proceeds towards retirement of the most expensive debt. “Now the ministry has issued standing instruction to the SBP to automatically retire debt to the extent of 90 per cent of the proceeds so received without seeking further guidance from the ministry on individual receipts,” an official announcement of the finance ministry said on Sunday.

As far as the mandatory use of 10 per cent of privatisation proceeds for poverty reduction was concerned, the ministry said that it was incurring expenditure for the purpose much more than 10 per cent through a budgetary process with the approval of the parliament as prescribed by the Constitution.

The ministry said the privatisation proceeds were received only into the federal consolidated fund, adding that the privatisation proceeds had never been treated as government revenue.

It said the gap between government revenue and expenditure was the deficit which was

financed through government borrowings. The deficit level was fixed at the time of budget approval and remained unaffected by privatisation inflows, it said and added: "Whenever privatisation proceeds are received, they automatically displace debt of the government.”

Further, the privatisation commission remitted the proceeds of each transaction to the government after making payments to owners other than the government whose shares were sold and after meeting direct transaction costs of the privatised assets.

The audit department had informed the PAC that the Privatisation Commission kept privatisation proceeds in a separate account, other than the federal consolidated fund, and was utilising the money for current expenditures, instead of debt retirement and poverty alleviation. The audit department officials said that the ‘unique arrangement’ not only violated the 1973 Constitution but also negated the 1991 privatisation policy and a related ordinance promulgated in 2000.

The PAC directed the Privatisation Commission officials to appear before the committee within 10 days and clear the commission’s position regarding the allegations.

At least two articles of the Constitution envisaged that public money could only be managed through the federal consolidated fund or a public fund.

Article 78 specified that amounts received by the government could either be credited to the federal consolidated fund or public fund.

For spending public money, Article 80 stated that any amount should be budgeted only through the federal consolidated fund.

Finance Secretary Tanveer Ali Agha had informed the PAC that the Finance Ministry had constantly been urging the commission to "stop keeping the funds separately" but without any success. "When the commission was doing this (unconstitutional) practice, we kept pressing for a change ... but our directives were not heard," Mr Agha told the committee.

After facing Finance Ministry’s pressure, Mr Agha said, the commission got the practice approved from the Cabinet’s Committee on Privatisation in a bid to validate the unconstitutional step. However, he contested the audit department’s objection that privatisation proceeds had been used for any purpose other than debt retirement and poverty alleviation.

http://www.dawn.com/2006/11/27/top2.htm

 

[Contrarian]

Neo, it would be better if you only start posting on the Indian economy thread. No1 seems to bother to update it LOL

 

[ali ahmad]

ISLAMABAD, Nov 27: The government has decided to defer three mega dam projects -- Kalabagh, Akhori and Diamer-Bhasha -- owing to opposition from smaller provinces.

The projects with a total cost of Rs1.027 trillion ($17 billion) were put up before a meeting of the central development working party (CDWP) for concept clearance here on Monday to start formal discussions with lenders for foreign funding arrangements.

The meeting, presided over by Planning Commission Deputy Chairman Dr Akram Sheikh, however, approved Rs1.677 billion, including foreign aid of Rs98 million, for detailed engineering design and preparation of tender documents of the Diamer-Bhasha dam project.

The meeting also approved 23 projects costing Rs74 billion.

Representatives of the Sindh government said that an assessment committee had been constituted by the CDWP in the last meeting to submit a comprehensive report covering six key aspects of the three dams and concept clearance could not be taken up at this stage.

They proposed that concept clearance be delayed so that provinces could give their input to the committee and then findings of the committee could be considered at the CDWP level.

A participant of the meeting told Dawn that representatives of the NWFP and Balochistan supported the Sindh’s stance.


http://www.dawn.com/2006/11/28/top1.htm

 

[Owais]

Pakistan desires to further strengthen economic, trade ties with UK: PM


ISLAMABAD (updated on: November 28, 2006, 17:52 PST): Underlining the importance of long standing diplomatic, political and economic linkages between Pakistan and UK, Prime Minister Shaukat Aziz has said Pakistan desires to further strengthen the economic and trade relationship between the two countries through greater interaction between the private and public sectors of the two countries.

The PM was talking to Mr. Ian McCartney, UK Minister for Trade who called on him Tuesday alongwith a 10-member delegation comprising representatives of London Stock Exchange, financial institutions and senior government officials.

Expansion of economic relations between Pakistan and UK, reform agenda of the government and the issue of better market access for Pakistani products in the markets of European Union came under discussion.

The prime minister said Pakistan is an emerging market with a vast potential for growth, rising consumer spending and robust industrial development. The recent listing of Muslim Commercial Bank ( MCB) at London Stock Exchange and forthcoming listing of Oil and Gas Development Company (OGDCL)is a clear evidence of international acceptance of stability in Pakistan's industrial and financial sectors.

Aziz said that as a result of the far-reaching reforms introduced by the government in every facet of life, Pakistan has been transformed into a country having high growth.

The reforms introduced for de-regulation of the economy, transparent privatisation, creation of a business-friendly environment, rationalisation of taxes and tariffs and transparency in the government transactions has restored the confidence of the investors and Pakistan received record Foreign Direct Investment during the last year.

The prime minister said Pakistan has made significant progress on the issue of Intellectual Property Rights. A dedicated organisation has been set up to deal with the issue in a focused manner and we are dealing with violations in tough manners.

He said Pakistan is moving fast on the reform path to prepare itself face the challenges posed by globalisation. He said the government is working on increasing absorptive capacity and the training of the civil servants is one of the steps in that direction.

The prime minister said one of the basic paradigm shifts in the country is a clear distinction in the roles of Ministries and regulators. While policy formulation is the responsibility of the Ministries, regulators have been provided the independence to deal with the implementation part of

it.

He said Pakistan desires to initiate talks on Free Trade Agreement ( FTA) with European Union and said Pakistan being an open economy is in a position to enter into such agreements and implement them effectively.

The premier asked UK to extend their support to Pakistan in this regard.

Mr. Ian McCartney said the Banks and financial institutions of UK find the investment climate in Pakistan very conducive and a number of them are planning to expand their operations in Pakistan.

He said the private sector companies are keen to invest in Pakistan in health care, financial and oil and gas sectors through joint ventures with Pakistan companies and on public private partnership basis.

McCartney appreciated Pakistan for passing women protection bill and said the legislation will go a long way in providing justice and security to women.

He appreciated the role played by Pakistani community in the development of UK. The British MPs of Pakistani origin are doing their job actively and enthusiastically, he added.

Sir Thomas Harris, Vice Chairman of Standard Chartered Bank said British financial institutions are watching with great appreciation the economic transformation of Pakistan. He said the expansion in their operations in Pakistan, by a number of foreign Banks, is an expression of their confidence in Pakistan's economic and banking sectors.

The meeting was attended among others by Minister for Commerce Mr. Humayun Akhtar Khan, High Commissioner of UK in Pakistan Sir Mark Lyall Grant and senior officials

 

[Owais]

Pakistan seeks UK support for trade relations with EU


ISLAMABAD (updated on: November 28, 2006, 17:51 PST): Federal Minister for Commerce on Tuesday sought British government's support to persuade EU for looking Pakistan as attractive trade partner in the back drop EU and Indian negotiation on expansion of trade.

Ian McCartney, UK Trade Minister along with his delegation called on Commerce Minister Humayun Akhtar Khan to discuss multilateral and bilateral issues.

The UK Trade delegation consisted of representatives from Government and major business entities. Mr. Hamish Daniel, British Deputy High Commissioner was also present on the occasion.

Khan welcomed the delegation and discussed Pakistan and EU positions on Doha Development Agenda.

He expressed his satisfaction over the resumption of the Doha Development Agenda negotiations.

The Commerce Minister also reminded British Trade Minister on the establishment of Joint Commission under the Third Generation Agreement. He requested for British support on early finalisation of EU composition.

The minister requested the visiting Minister to facilitate Pakistanis living in UK, who are very enterprising, to invest in Pakistan particularly in textile sector.

Expressing satisfaction over bilateral relations between Pakistan and UK, The British Minister expressed his resolve to further strengthen bilateral relations between the two countries adding that EU desires to resolve DDA deadlock and the major partners are restructuring their agriculture policies with a view to resolve the impasse.

The minister invited Khan to visit other cities of UK like Glasgow, Manchester and North Midlands, where Pakistan origin community is mainly residing, to meet them and attract them to invest and do more business with Pakistan.

The Commerce Minister accepted the invitation and assured the Minister that he will visit the suggested cities whenever, he would be visiting UK and around countries.

 

[Owais]

Renewable energy plants to start production by August: AEDB

ISLAMABAD (November 28 2006): The companies awarded Letters of Intent (LoIs) for setting up renewable energy plants will start producing 3,350 MW electricity within next eight to nine month, AEDB Chairman Air Marshal Shahid Hamid (Retd) said on Monday.

Addressing a three-day workshop on, "Renewable Energy and Energy Efficiency (REEE)", he said that 67 companies were issued LoIs, 14 of them were allotted land, while some of them are negotiating with the National Transmission and Dispatch Company (NTDC) for tariff.

Under the Prime Minister's directive, some 400 villages would be electrified by connecting them with the national grid through renewable energy sources by August 2007, he added. The renewable energy policy will be laid before the Economic Coordination Committee (ECC) of the Cabinet in December for approval and hopefully, it would be approved, he said.

Nepra, in its determination, has set upfront tariff of 10.5 cents for renewable companies that would get the LoIs before the end of December irrespective of renewable policy is approved by the ECC or not.

The AEDB chief said that land acquisition from the provinces as one of the most hectic issues. However, about 17,000 acres of land would be allocated to the interested companies for promoting this sector. "We are promoting the renewable sources of energy to enable our industry to compete outside Pakistan", he added.

Inefficient conservation policy is causing a loss of $1.5 billion annually to the national exchequer and this huge amount could easily be managed by investing $200 million in developing renewable sources, said Enercon Managing Director Dr Pervez Tahir.

"We imported $1 billion of fossil fuel in the first quarter of last year but this figure crossed it in the same period last year", said Dr Pervez, former chief economist in the Planning Commission. The government, he emphasised, along with construction of water and gas projects, should focus on commissioning alternate sources of energy by conserving the tapped sources.

"The private sector always demands incentives and any policy based on incentives proves problematic for the government, but the government have to address it properly," said Dr Pervez. Pakistan's high growth has scrambled energy demand widening the energy gap to meet from the tapped sources, therefore, there is urgent need of exploring other sources of energy, he stressed.

Ulrich Stoehr Grabowski, principal advisor, GTZ, Germany, said the company is working with Pakistani department not only to conserve energy but also to address the environmental issues as well. Besides providing services in wind, solar and micro hydel production, the GTZ is also working with the textile sector in energy auditing in Karachi, Lahore and Faisalabad, he added.

 

[Owais]

Government to raise primary education budget to 4 percent of GDP: Musharraf
KARACHI (November 28 2006): The government plans to increase the allocation for primary education from 2.6 percent to four percent of the GDP. This was stated by the President Pervez Musharraf here on Monday.

He was speaking as chief guest at the inaugural ceremony of the Latif Ebrahim Jamal National Science Information Centre at the Karachi University Campus.

The President informed the gathering that the increase in allocation for primary education from 2.6 to four percent of the GDP roughly means more than Rs 150 billion.

He stressed the need for growth of the country's economy at a faster rate. "The economy of Pakistan has to be sustained and it has to grow at a fast rate that we have maintained now over the last three to four years," Musharraf remarked.

He pointed out that over the last three to four years we are maintaining the economic growth at the rate of seven percent and that this has to be maintained.

The President said the government would also be financing the establishment of nine universities of engineering, science and technology in the country to be set up with the help of developed countries. This means expenditure of Rs 250 billion over the next 10 years, he added.

Pervez Musharraf said in this endeavour for the promotion of education we need assistance from wherever (possible) and that is where philanthropic activity comes in. "I seek the support of the people of Pakistan, those who are more endowed, those who have more resources," he remarked adding that he knows that philanthropy is in our blood.

The President said Pakistanis spend some Rs 70 to 90 billion on philanthropic activities. He stated that this expenditure is unguided and that we need to know where to place the money.

He pointed out that this is a knowledge driven world and that the basis of the economy is on knowledge. That knowledge happens to be in the engineering and science and technology. The President described the inauguration of Latif Ebrahim Jamal National Science Information Centre as a very historic occasion.

He paid special homage to the memory of Hussein Ebrahim Jamal and Latif Ebrahim Jamal. Musharraf also commended the efforts of their sons for carrying forward the mission of their father and uncle and for contributing so much for Pakistan.

He also pointed towards the manifestation of growing interest in philanthropy in Pakistan which is also inclined especially towards science, technology and engineering which is the requirement and demand of the day for Pakistan.

The President said this is very much in line with the policy of the government.

He explained that our policy is very clear and that it is based on the realisation that this is a knowledge-based world and that without knowledge the economy cannot grow.

Giving a comparison, Musharraf said the total GDP of the whole Muslim world is hardly dollars two trillion whereas the GDP of Germany alone is far more than this and that of Japan is dollars 5.1 trillion in spite of the fact that Japan has no natural resources. This is the proof that knowledge is the driving force of the economy.

He pointed out that it is not the natural resources but is more to do with value addition with knowledge-based addition to the economy. Citing an example, the President said Pakistan is the fifth largest producer of milk in the world but not producing any butter, cheese or milk powder to export to the world.

He said we have the best mango, apple and grapes and resources but when we talk of food or fruit processing - tinned fruits, it is all from abroad and, none from Pakistan.

Musharraf was of the view that we should also be processing the fruit for exports. He also pointed out that in Turbat and Panjgur there are 120 kinds of dates and suggested that factories for producing date biscuits may be set up for export to the world.

President made it clear that our strategy is very clear and that while we want to promote education at all levels we have to have a solid foundation and a solid superstructure. Musharraf pointed out one of the root causes of extremism is poverty, joblessness, illiteracy.

He said our strategy for the industry is to create synergy between higher education, engineering, science and technology and technical education to produce technicians of high quality. University level education to produce engineers and technical education to produce technicians in accordance with our industrial needs - present and future.

He suggested that we should study what we require our industry to take on. The President said we are establishing nine universities of engineering, science and technology in the country with the help of developed countries of Europe and of the East.

He pointed out that these universities are going to be unique. Musharraf said we have lagged behind and the strategy which we have adopted now will take us on a fast course to the level of the world. He also pointed out that out of the 500 top universities of the world none is from the Islamic world.

He said the course we are adopting now is to get a university from abroad and that we have already inaugurated a university with French assistance in Karachi. This is Pakistan-France University. There will be Pakistan-Austria University in Lahore.

He announced that he would shortly inaugurate Pakistan-Sweden University in Sialkot. Musharraf said there would be four such universities in the Punjab, three in Sindh, and also in NWFP and Balochistan.

President Musharraf announced a donation of Rs 30 million for the expansion and infrastructure development of Latif Ebrahim Jamal National Science Information Centre.

He also announced half a month's salary for the staff of the Centre. Vice-Chancellor of Karachi University, Professor Dr Pirzada Qasim Raza Siddiqui, also agreed to give one acre of land on the campus to the Centre for the purpose.

Musharraf informed about what he intends to do personally with the proceeds of the book that he has written and said he has already stated that he would be donating this amount towards a welfare foundation.

Meanwhile, after performing the inauguration of the Latif Ehrahim Jamal National Science Information Centre, the President went round its various sections.

In his address, the Chairman of Higher Education Commission (HEC), Professor Dr Atta-ur-Rahman, said the Latif Ebrahim Jamal National Science Information Centre illustrates what technology is making possible today which was not possible 10 years ago.

He said this is a Centre, which has multimedia capabilities and an access to a very large repository of international journals. Professor Atta said this also marks the beginning of a very exciting progress, first in the world, where we are now linking up our universities and research organisations to top scientists in Harvard, MIT, Cambridge or Oxford and to the top universities across the world so that they can give lectures from there and through fibre links these lectures are listened to live by the students in Pakistan.

He pointed out that 18 universities are already connected up and the others will be connected in the next six months. Speaking on the occasion, the Vice-Chancellor of Karachi University, Professor Dr Pirzada Oasim Raza Siddiqui, paid rich tributes to President Pervez Musharraf for his unprecedented support to the basic education as well as higher education in Pakistan for the very first time.

He said the inauguration of the Latif Ebrahim Jamal National Information Centre is a landmark event in the process of modernisation of facilities at the campus and establishing strong, meaningful linkages with the world's highest centres and learning and research.

The Vice-Chancellor said the project is a glowing example of public and private partnership in the education and research sector. Chairman of the HEJ Foundation, Aziz Latif Jamal, also spoke on the occasion. Sindh Governor Dr Ishrat-ul-Ibad Khan and Chief Minister Dr Arbab Ghulam Rahim, were also present.

The Centre has been described as one of the largest paperless science library or information dissemination centres of the world, which is the first of its kind in the region.

The Husein Ebrahim Jamal Foundation has donated around Rs 20 million for the establishment of this three-storey building on a plot measuring 2,500 square yards and an equal amount has been donated by the Higher Education Commission (HEC) for its construction.