Pakistan Economy - News & Updates - Archive

[Introvert]

Pakistan, Thailand have potential to boost economies​

LAHORE: Thai Commerce Minister Krirk-Krai Jirapaet has said that both Pakistan and Thailand have very strong credentials including good geographical location to give new strength to their respective economies as safe-havens for investment.

He expressed these views while speaking at the Lahore Chamber of Commerce and Industry on Wednesday. He said that being a member of ASEAN, Thailand offers a 500 million consumer market to Pakistan as the ASEAN would be a common market on the pattern of European Union by 2015. He said that Thailand is a trading nation and it is doing business with the whole of the world. Only last year, Thailand exported goods worth $130 billion to the world.

The minister said that Thailand retains a rising economy with 7.5 million tons of rice export annually but he accepted that Pakistani rice has no match in the world. The minister said that the present high-level visit of Thai businessmen was enough to make the point that it was serious to achieve the goal in economic terms.

Earlier, Lahore Chamber of Commerce and Industry signed an MoU with Thailand Chamber of Commerce and Industry. Thailand Chamber of Commerce and Industry was represented by its Vice Chairman Somkiat Anuras while LCCI Senior Vice President Yaqoob Tahir Izhar inked an agreement on behalf of LCCI.

Speaking on the occasion, the LCCI President Shahid Hassan Sheikh said that the import and export profiles of both sides indicate that there is a potential for increasing Pakistan’s export to Thailand, to $2.78 billion, while Pakistan has a potential for importing goods from Thailand to the extent of $11.55 billion. He said that business-to-business contacts and one-to-one meetings are the most productive means of marketing a country’s products. He said that the trade between the two countries has grown from $332.5 million to $717.6 million over the last three years indicating an increase of 115.8 per cent.
http://www.thenews.com.pk/print1.asp?id=51870

 

[Janbaz]

Other alternative is full utilisation of coal reserves in Sind, est 145 billion ton to generate electricity.

Sir, i say we try to utilize/invest more and more in green energy. Tidal, Wind, Biofuels like Ethanol etc should all be thought of when considering future strategies. These steps might be hard to work upon now but we will be the big winners in the long run leaving behind a much cleaner country for our children. :flag:

 

[Janbaz]

Trade with China to touch $15b, says PM

DILSHAD AZEEM
BEIJING-Prime Minister Shaukat Aziz held an important meeting with Chinese President Hu Jintao here on Wednesday mainly focusing on defence and satellite cooperation between the two friendly countries.
“Not only we agreed on promotion of our relations but also on transfer of technology to Pakistan,” the prime minister told media persons after he had almost one-hour meeting with the Chinese President.
Aziz parried a question when asked about the details of space and satellite cooperation on which both sides have also signed an agreement. However he mentioned that the whole range was covered as far as the satellite cooperation was concerned as he personally visited the space plants of China.
To another question, the prime minister said that the 27 agreements, inked on Tuesday and one on Wednesday, would attract US dollar 1.8 billion investment in Pakistan. “ As a result of the agreements and the cooperation, we will be able to increase the trade volume between China and Pakistan from the present US $ 5 billion to US $ 15 billion in next five years.”
During the meeting, both sides also brought under discussions other issues including Pak-India relations, Iran’s nuclear issue, Middle East situation and President Musharraf’s initiatives aginst terrorism, and for promotion of trade and investment. “Internationally and regionally important areas amongst the issues were taken up during the meeting,” he said.
“I told the Chinese President that Pakistan is very much concerned over nexus between drug money and terrorism in Afghanistan. We firmly believe that a strong Afghanistan is not only in the interest of Pakistan but also of the whole world’” he added.
Aziz said both the sides also inked an agreement for Project Implementation Regulation in order to move forward in practical terms on the agreements and the MoUs signed during his two-day official talks with the concerned government functionaries of China.
The Bank of China and ICBC are ready to invest in Pakistan in various projects including those related to the water and power sector, he said, adding, his talks with the private as well as the government officials remained substantial, productive and result-oriented.
Shaukat Aziz, along with his entourage, will visit Chengdu today (Thursday) where he would examine the production of JF-17 Thunder, which Pakistan obtained from China in the recent months.

The Nation.
http://www.nation.com.pk/daily/apr-2007/19/index8.php

 

[Neo]

$25 billion foreign investment expected in Punjab

KASUR (April 20 2007): Foreign investment of up to 25 billion dollars is expected in the Punjab province, which will ensure economic growth, promote local industry and create jobs for thousands of people. This was told by Punjab Minister for Public Health Engineering (PHE), Hasan Akhtar Mokal while talking to APP.

He said that there had been a 120 percent increase in trade with China. He said that the Punjab government was providing health facilities, including provision of clean drinking water, to the masses at grassroots level.

As many as 1,000 water schemes costing rupees five billion were being completed in the province, including water treatment plants and testing laboratories were being established.

Through another project, old and eroded pipelines for drinking water, and for sewerage system, were being replaced. The work would be completed by the end of this year, he said.

http://www.brecorder.com/index.php?id=553195&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Pakistan and Iran agree to allow each other transit facility

ISLAMABAD (April 20 2007): Pakistan and Iran have agreed to allow use of each others' territory for transit facilities, a top government official said on Thursday. Under a new initiative, Tehran would provide Islamabad access to Central Asian states, Turkey as well as Russia to transport its cargo.

"We have agreed to allow each other transit facility to boost our trade ties," Communication Minister Shamim Siddiqui said in a news conference here after attending a three-day first Joint Comprehensive Transport Meeting in Tehran. Representatives of ministries of Defence, Communications, Railways and Ports and Shipping were also part of the high-level Pakistani delegation.

He said the two sides have also agreed to launch a cross-border bus service between Quetta and Mashhad to facilitate pilgrims. Shamim Siddiqui told newsmen that Pakistan and Iran have inked International Road Transport Agreement.

Spelling out its salient features, the minister said Pakistan would provide its territory to Iran for transit facility to those countries with whom Islamabad has bilateral agreements like China, Kazakhstan and Kyrgyzstan. Similarly, Tehran would allow Pakistan to use its territory for transporting cargo to and from Central Asian states and Turkey.

"It would boost our exports of fruits and vegetables. This year, Tehran has imported 0.1 million tonnes potatoes from us," said Shamim Siddiqui. The minister said that Pakistan and Russia would also start trade via Iran, adding: "Now Pakistan can start trade with Russia via Iran. I have visited Tehran's port at Caspian Sea as well. Besides Russia, they (Iran) are trading with Azerbaijan, Turkmenistan, and Kazakhstan."

About cross-border bus service, the minister said they have agreed to launch a bus service between Quetta and Mashhad. Initially, it was decided to start a bus service between Quetta and Zahedan, but the two sides have now mutually agreed to extend it up to Mashhad.

Replying a query, he said operators from both sides would meet on May 15 to finalise all the modalities vis-à-vis frequency of buses and fares whereas the Pakistan government would complete its bus terminal at Taftan this December.

The minister hoped that the launch of bus service would not only enhance people-to-people contacts, but it would also help business community of the neighbouring states. He said the two sides have underlined the need for increasing the frequency of airlines and launching of a joint shipping company to cement maritime relations.

When asked, Shamim said Pakistan had no pressure from United States over launching cross-border bus service with Tehran. "We are promoting our relations. No country should have concerns in this regard," he said in reply to a question.

http://www.brecorder.com/index.php?id=553134&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

Gas discovered in Tando Alam

KARACHI (April 20 2007): The Oil and Gas Development Company Limited has discovered gas in its Dhachrapur exploratory Well No 1 in Tando Alam, Sindh. In a notice to the Karachi Stock Exchange (KSE) it was stated that Dhachrapur well No 1 was drilled down to the depth of 3,495 meters. Based on drilling and electric log data, two zones were selected for testing.

Production testing of zone-1 (massive-sands) of Lower Goru Sand member started on April 16, 2007, which proved productive. The short duration initial testing results at a wellhead flowing pressure of 2400 PSI as the choke size is 28/64 inches, gas 9.25 mmscfd while quantity of water 140 bwpd.

The potential of additional zone-2 of Lower Goru Formation in the well will be tested shortly. Faraz Farooq an analyst at the First Capital Equities Limited said that OGDCL holds 100 percent stake in Tando Alam, ML. Based on testing results, the per share impact is worked out to be Rs 0.07 for OGDCL on annualised basis.

http://www.brecorder.com/index.php?id=553119&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Is this the same discovery reported two days ago? The figures don't match nor does the location.

Imho this is the second discovery in a week.

 

[Neo]

Kabul’s port access demand rejected

KARACHI: Pakistan has rejected Afghanistan’s demand for a direct access to its ports to lift cargoes imported under a transit facility on security grounds. Islamabad also believes that if this demand was fulfilled, it would eliminate local operators’ role and thus put more than 100,000 jobs on the line.

Sources in Afghan Transit Trade (ATT) said both the ministries of communications and commerce opposed this proposal coming from the Afghan government and traders.

“Actually the government believes that the involvement of Afghan transport to lift ATT cargoes could cause several problems,” said a source close to the negotiations between the two sides. “With the Afghan transport the trend of smuggling is feared to pick up while there would also be chances of influx of products which are not required.”

He said though the Afghan side didn’t define the way they wanted to lift the cargoes from Pakistani ports, it seemed that they would like their own transport to enter Pakistan, load the cargo and then get back to Afghanistan.

Afghanistan recently sought direct access to Pakistani ports to lift cargoes imported from different countries under a transit facility, through its own transport. A delegation of Afghan traders and officials recently visited Pakistan and held meetings with authorities concerned and local custom agents, who facilitated ATT from Pakistan.

One of the major demands the Afghan team made before the Customs official and CBR was to have a direct role of Afghan importers and government in transportation of ATTA cargoes from Pakistan to their final destination in Afghanistan. “There are also concerns raised from local Customs agents, who facilitate ATT transportation from the ports here to Afghanistan,” said the source. “Such process involves more than 90,000 people to generate their employments and it’s a proper regulated business in Pakistan. If the government allows the Afghan transport, it means an end to their role and business.”

He said the Pakistani side was more interested in making the existing ATT system more transparent and the recent meeting with the Afghan delegation was part of the same objective.

The country in late 60s entered into an Afghan Transit Trade Agreement (ATTA) with Afghanistan, which allowed goods bound for the landlocked neighbour to transit Pakistan free of duty.

Initially the trade was restricted to a few products, as it carried a negative list of more than 50 products, on fears of smuggling, which could trigger a flood of smuggled goods into the local market.

However, rising demand in the neighbouring country has convinced the authorities to remove most products from the negative list, which has now been reduced to four, which include cigarettes, cigars, automobile parts and right-hand drive vehicles.

“Currently, Pakistan and Afghanistan are drafting an agreement to enhance ATT with focus on volume increase and minimum documentation requirements,” said the source. He said the agreement was due to be signed within next few weeks and it required a nod from the high-ups of both sides.

“The proposed agreement offers benefits to the ATT with incentives from both sides of the border, which would expedite trade process and ultimately cut transportation cost of consignments,” he added.

Imports under ATTA started increasing some three years back as construction activity picked up in the landlocked country.

The imports under ATTA crossed almost Rs30bn by the end of June 2006.

http://www.thenews.com.pk/daily_detail.asp?id=52030

 

[Neo]

‘Malaysia to help develop Pak palm oil industry’

KARACHI: Owing to the policies being pursued by the governments of Pakistan and Malaysia, the two countries enjoy very good political and trade ties.

Malaysian Minister for Plantation Industries and Commodities Datuk Peter Chin Fah Kui said this while addressing a press conference here at a local hotel on Thursday.

He particularly referred to the palm oil industry which falls under the purview of his Ministry, and added that various steps have been initiated to further enhance the cooperation between the two countries.

Datuk Peter spoke of the increasing trade volume between Pakistan and Malaysia because of the good liaison between the two countries. He said that both the countries should avail opportunities to strengthen cooperation in the palm oil sector. The establishment of Pak-Malaysia joint ventures in bulking installation, refinery and the latest being the liquid jetty indicate mutual understanding between the two countries.

The minister hoped that both Malaysian and Pakistani counterparts can explore more downstream business partnership in areas such as advanced food applications, energy and telecommunication etc. He said that Malaysia will continue to support the development of palm oil industry in Pakistan. The minister said that on Friday he would visit Port Qasim to initiate a project there.

Dr Salmiah Ahmad of the Malaysian Palm Oil Board and Long Rashid, the Consul General of Malaysia in Karachi, were also present on the occasion.

http://www.thenews.com.pk/daily_detail.asp?id=52033

 

[Neo]

April 20, 2007
Plan to seek investment in agriculture

ISLAMABAD, April 19: Official planners have finalised an "action plan" that sought to attract sizable local and foreign investment by removing impediments in industry, agriculture and the services sectors.

Official sources told Dawn here on Thursday that the action plan - contained in a detailed report - is expected to be discussed and approved in the next cabinet meeting. It has been jointly prepared by the Planning Commission, Higher Education Commission (HEC) and Pakistan Institute of Development Economics (PIDE).

Sources said that before the cabinet meeting, President Gen Pervez Musharraf would also be briefed about the report.

"This is a very important report, which aims at improving all the major sectors of the economy by implementing a number of proposals," federal minister and the chairman of HEC Prof Dr Atta-ur-Rehman told Dawn.

The report, he said, carries out an in-depth analyses of the major sub-sectors of all the three productive sectors of the economy - agriculture, industry, and services - and within each sub-sector identifies key issues and challenges, sets out strategic objectives and targets, and spells out a detailed action plan to realise the major economic objectives of the government.

The two major themes of the report, he said, are human resource development and research and development to provide incentives to the private sector to invest in various potential sectors of the country's economy.

According to the report, which was also shared with this correspondent, a sustained growth rate of five to six per cent in agriculture is imperative to ensure a rapid growth in national income, macroeconomic stability, improvement in distributive justice and a reduction in poverty.

This can be realised by exploiting the potential of all the sub-sectors of agriculture, diversifying agricultural production towards high value crops, and conserving land and water resources.

The textiles sector, the report added, is facing a number of challenges including a low technological base, lack of research and development, lack of trained manpower, low quality standards, concentration in low value-added products, and too much reliance on cotton.

To address these challenges and to facilitate the transformation of the textile sector into a strong, dynamic, and internationally competitive industry led by the private sector, the public sector must create an enabling environment through a business friendly regulatory framework, appropriate incentives to the private sector, institutional support and provision of quality infrastructure.

Leather and leather products play a significant role in Pakistan's economy. The leather industry is mainly export-oriented and has a potential to grow rapidly, provided measures are put in place to encourage value addition as well as to improve product quality.

Environmental pollution is a major issue and non-compliance with environmental standards could hamper Pakistan's exports. There is a need for national environmental legislation to curb the growing tannery effluent problem.

The report recommends a number of measures for the development of materials utilising the indigenous resources, exploitation of minerals, and development of new materials, especially the composites.

"There is a need to diversity into fast growing sectors like engineering and electronics." Engineering industry is one of the most dynamic industries in world having great potential for growth.

The most important step for the promotion of engineering sector in Pakistan, the report believed, is to allocate more resources to technical education, the lack of which has been identified as one of the reasons for the limited progress in the engineering sector.

There is also a need to develop design engineering capabilities, databases and infrastructure, create testing laboratories and instruments, and initiate public-private partnership in projects leading to innovation of new products and processes.

"The goals of the industrial vision cannot be realised without an effective energy sector," it said adding that the supply-demand analysis shows that even the modest economic growth, the current rate of change in supply will result in power shortages in Pakistan, adversely affecting the growth process.

Therefore, Pakistan needs to concentrate not only on the expansion of energy resources but also on improving efficiency of resource use. For expansion of power supply it is important to increase the supply of power from traditional resources like hydel, thermal and nuclear and from other sources like building micro/mini hydel power units.

For safe and efficient transportation network a number of measures are proposed including: modernisation of the maintenance system; introduction of user charges; human resource development through training in transport management and maintenance standards; enhanced participation of the private sector in transport projects.

The report recommends the revival of Karachi Circular Railway and introduction of light rail transit system in Lahore as part of measures to improve urban transportation.

http://www.dawn.com/2007/04/20/ebr9.htm

 

[Neo]

Friday, April 20, 2007

CBR plans to achieve 1.72m taxpayers’ target

LAHORE: The Central Board of Revenue (CBR) is endeavouring to take the number of taxpayers in the country to the level of 1.725 million by the end of current fiscal year from 1.65 million.

"The annual growth in the number of tax payers has lately been 20 percent," Member CBR (Direct Taxes), Salman Nabi said while speaking at a pre-budget seminar organized by ACCA at a local hotel on Thursday.

Director General Regional Tax Office (RTO), Haji Ahmad and other CBR officials were present on the occasion.

Quoting a report of State Bank of Pakistan (SBP), Salman Nabi said that tax base in the country could be broadened to the level of 3 million payers.

He said that only 22 percent of Pakistan's population was economically active.

About the direct taxes target for the year 2006-07, he said that the CBR had already crossed the target within first nine months of the year.

“Direct taxes now form 42 percent of the total revenue collection,” CBR member said.

He said that the CBR had paid back Rs 90 billion refund amount during the last 33 months.

In addition to 1.65 million income tax, 2.7 million electricity consumers, 28 million bank account holders, 5.5 million landline phone users and 52 million mobile phone users were paying taxes in one way or the other, he explained.

He said that CBR had made the tax administration faceless during the last three years.

Salman Nabi said that Pakistan had signed Avoidance of Double Taxation agreements with a number of countries.

About real estate, he said that CBR was getting all the information about the property transactions in Karachi through online system and added that similar system would also be introduced in other towns of Pakistan soon.

Responding to a question about the issuance of SROs, he said that subordination legislation takes place everywhere in the world.

He said that CBR was trying to create a fear of law, adding that an audit plan based on 13 parameters had been prepared to achieve this objective.

He said that CBR had also developed software programme, Nexus to further streamline the tax collection system.

Muhammad Arshad, Head Internal Audit and Taxation, First Fidelity Leasing Modaraba, Irfan Ilyas, Partner Ilyas Saeed & Co and former President Lahore Chamber of Commerce and Industry (LCCI), Yawar Irfan Khan also spoke on the occasion.

http://www.dailytimes.com.pk/default.asp?page=2007\04\20\story_20-4-2007_pg5_4

 

[Neo]

Friday, April 20, 2007

Earthquake reconstruction: Creditors disbursed $1.762b of $6.730b pledges till Jan 17

ISLAMABAD: The international creditors and donors have disbursed till January 17 this year $1.762 billion of the $6.730 billion they had pledged for reconstruction and rehabilitation of the Oct. 2005 earthquake-affected areas, it is learnt.

According to documents available with Daily Times, the multilateral creditors have disbursed $815.493 million of total pledges of $2.946 billion. The disbursed amount includes $86.6 million in grants and the remaining in loans.

The bilateral pledges, which mostly came from individual countries and organisations, amount to $3,784 billion, which include $1.275 billion in grants and the rest in loans. The government of Pakistan has also discussed several projects with the donors for providing funds through different monetary institutions and non-governmental organisations (NGOs).

Over 73,000 people were killed and another 100,000 injured when an earthquake of magnitude 7.6 wreaked havoc in parts of North West Frontier Province (NWFP) and Azad Jammu and Kashmir (AJK) on October 8, 2005, prompting the world to rush to Pakistan for help.

The bilateral donors included World Bank (WB), Asian Development Bank (ADP) and Islamic Development Bank (IDB), while the government had rejected $375 million loan offered as Poverty Reduction and Growth Facility by the International Monitory Fund (IMF). The WB has disbursed $651.614 million, including $45 million grants, of its total $1.07 billion pledged.

The ADB has disbursed $111.54 million of total pledged $1 billion, of which $920 million is loan. The disbursed amount includes $80 million in grants. The IDB had pledged $501.6 million and disbursed $51.433 million, including $1.6 million grants.

Of the bilateral donors Saudi Arabia committed $573 million, including $253 million grants, but had not disbursed any amount till Jan. 17 this year. However, Pakistan has signed an agreement with the Saudi government to provide $133.3 million for governance, education and health projects. Another $187 million agreement has also been signed.

The United States had committed $500 million and disbursed $293 million in grants, which was spent on relief operations. The UK had pledged $256 million in grants and disbursed $105million.

The UAE had committed $200 million (all in grants) and had not yet disbursed any amount but committed $100 million for Rawalakot hospital. Japan has pledged $192 million that includes $92.338 million in grants. It has so far disbursed $37.62 million.

Turkey has pledged $150 million grants and has disbursed $100 million for District Complex, Muzaffarabad. The other countries who had made pledges in grants include Libya ($100m), Canada (114.28m), Germany ($65.44m), World Food Programme ($62.38m), Australia ($62.38m), Agha Khan Foundation (453.50m), Switzerland ($40m), Qatar ($30m), Spain ($25.13m), India (25.03m), Finland ($22.3m), Denmark ($18.5m), Italy ($12.24m), Ireland (412m) and Belgium ($8.142m).

Oman, Bahrain, Malaysia, Ukraine, Greece, Luxemburg, Austria, Bangladesh, Morocco, Azerbaijan, Afghanistan, Indonesia, Algeria, Jordan, Singapore, Brunei, New Zealand, Czech Republic, Thailand, Bhutan, Cyprus, Mexico and Mauritius have also contributed small amounts in grants to help the earthquake- affected people.

http://www.dailytimes.com.pk/default.asp?page=2007\04\20\story_20-4-2007_pg7_15

 

[Neo]

Friday, April 20, 2007

Learning from India and China

Prime Minister Shaukat Aziz was in India early April attending a SAARC summit; he is now in China. With India he “postponed” the expansion of trade relations; with China he has gone to request more economic involvement. India is next door to Pakistan but hostile; China is also next door but Pakistan’s best friend. Both India and China have populations of over a billion people each. The economies of both are growing at record rates. They are expanding trade relations with each other too.

Mr Aziz signed a large number of treaties with China during his visit. But of course, much will depend on how he is able to create the right conditions for Chinese investment and expertise in Pakistan. China is the only country keen enough at the official level to come and invest in Pakistan. It is no surprise, therefore, that they have been targeted by militants or terrorists, twice in Balochistan and once in the Federally Administered Tribal Areas (FATA). The came into the copper project in Balochistan at Saindak but were chased away a long time ago. Now they are back.

Mr Aziz met the Chinese President Hu Jintao and thanked him and the people of China for initiating joint mega projects in Pakistan, such as Gwadar, Chashma Power Plant, Saindak, and Karakoram Highway. Pakistan’s demand list was for ten nuclear power plants after Chashma but the Chinese have so far not acceded to it in deference to their partners in the Nuclear Club. Pakistan in return is home to cheap Chinese goods, a fact of which Mr Aziz boasted in New Delhi while refusing to open up trade with India. Presumably he was suggesting that India too could benefit from Pakistan’s market if it settled its political disputes with Islamabad first.

Pakistan too is growing at a good rate and Mr Aziz should be complimented on it, but there are certain areas that should worry him. The world no longer compares Pakistan with India which is now moving into the league where China finds itself. Mr Aziz knows this and yet he shows no public signs of breaking the mould of Pakistan’s stunted reflex on trade. He said nothing new that could break the monotony of yore when he told the Indian Prime Minister Mr Manmohan Singh that India should first sort out the Kashmir problem.

In China, Mr Aziz seems completely transformed. He says all the right things. He knows China is the fourth largest economy in the world and is growing at 9 percent annually. It is buying up commodities at such speed that a sucking sound is produced in the steel and oil markets at the global level. It has built an infrastructure to astound the world and is going out and buying up oil wells to secure its energy supply for a future where Pakistan and others will look around helplessly. It has disputes with India of a territorial nature but has set them aside to become its important two-way trade and investment partner, India being the investor.

India has democracy tied to its ankle like a steel ball burnished with anachronistic communist parties that hug state-owned enterprises and want everything subsidised. But India, led by a man of economics, has been realistic rather than “high-principled” with China. It has forgotten its revisionism with Beijing over territory it thinks China has grabbed forcibly and has instead plumped for trade. India’s high growth rate is not coming from a narrow curve restricted to computer electronics. It is on the way of reducing its poverty levels like China where millions have already come out of it. On the other hand, Mr Shaukat Aziz’s Pakistan has still not taken off after a measure of stabilisation.

What Pakistan needs badly is foreign investment despite its bad infrastructure that it shares with India; and despite the fact that it has a bad law and order situation, political instability and creeping anarchism known as Talibanisation. Not much foreign investment in the manufacturing sector is coming in, barring some Arab money in the service sector because it can’t be parked anywhere else. In fact some Pakistani investment is going out to the UAE where stable conditions of a market economy are available. Mr Aziz knows that Pakistan could lose its newly gained momentum unless he takes some radical steps.

Mr Aziz simply has to learn from India and China if original thinking is banned in Pakistan. Devaluation is staring us in the face because of the yawning trade deficit and overvalued rupee. He knows that if he can’t get money injected into Pakistan quickly enough Pakistan’s growth will falter. On top of that Pakistan could become politically dysfunctional if the next year or so is not managed with wisdom. If the idea is to thwart any move forward with India on trade and investment till the elections are here and over, it is a wrong idea.

The judiciary, badly treated by the prime minister, is taking revenge on the economy by blocking privatisation, which is one way of getting someone to bring in some money. Given these circumstances, Mr Aziz should have taken off his various masks, come into his own, and agreed with India to embark on a new trade and investment relationship without asking India to cough up Kashmir first. The people of Pakistan would have loved it. If Bangladesh can receive $2 billion in investment from just one Indian corporation Tata, why can’t Pakistan?

At the beginning of the new millennium a new kind of urgency faces the states of South Asia. These states have struggled with democracy since the mid-20th century but can’t seem to make out what it is all about. A message from China and the East says if you have your economy running right you can learn democracy at leisure. Becoming politically dysfunctional is not as dangerous as becoming economically dysfunctional. For Mr Aziz there are two models, that of China, which he views with feelings of friendship, and the other of India, which he regards through someone else’s spectacles. Both models have much to teach Pakistan. *

http://www.dailytimes.com.pk/default.asp?page=2007\04\20\story_20-4-2007_pg3_1

 

[Neo]

Friday, 20 April 2007

Protests over Karachi power cuts

Protests have become a regular feature of the Karachi summer
There have been protests in several parts of Pakistan's biggest city, Karachi, over continued power cuts.
The protests follow a fresh night of shortages in many parts of the city.

Religious and business leaders are threatening a city-wide campaign to persuade people to stop paying their electricity bills.

Power shortages have also affected many other parts of Pakistan, at a time when temperatures have been rising well above 40C (104F)

"We have been spending a better part of the nights during the past week out on the pavements because the heat is unbearable and the fans don't turn," Azhar Qureshi, a resident of the eastern Malir district of Karachi, told the BBC.

Fahim Lodhi, a student from the Gulistan-e-Jauhar area, said the shortages were playing havoc with his studies.

"The high school exams are on but there is no question of studying in this suffocating heat and darkness."

More acute

The largest demonstration in Karachi was organised by the Islamic MMA alliance outside a mosque in the Gulshan-e-Iqbal area.

Members of the All Pakistan Small Business Association (APSBA) also demonstrated in central Karachi.

Repeated power failures have also affected water supplies and sewerage pumps as well as business and industry.


Power cuts happen regularly in the Pakistani summer, but consumers say they are more acute this year.

Most areas in major cities have gone without electricity for anywhere between three to six hours every day, they say.

The federal Water and Power Development Authority (Wapda) announced plans for scheduled power cuts on 31 March but has not issued timings for different areas.

Consumers say power outages often catch them by surprise and recur several time a day.

Localised protests have been reported from dozens of cities across the country since early April, often leading to clashes with the police and electricity company staff.

The southern city of Karachi, with its 15m population, is the worst hit.

'Inefficient'

Mohammad Adil Siddiqui, the provincial minister for industries, has said that traders and manufacturers in Karachi are incurring daily losses of one billion rupees ($16m).

He says Karachi needs 650 megawatts of power for daily consumption, but that Wapda is only supplying 300mw to the city.

However, Wapda officials say they are supplying 625mw of power to the recently privatised Karachi Electric Supply Corporation.

Wapda says that the country generates a total of 11,200mw power but that total consumption needed during the summer rises to 12,500mw, causing power failures.

Critics say Wapda has failed to tap all available resources or augment its distribution network, which they say is very inefficient.

Power theft by major consumers, often with the connivance of Wapda staff, is another problem which has prolonged Wapda's financial woes, they say.

http://news.bbc.co.uk/2/hi/south_asia/6577135.stm

 

[Interceptor]

Arabtec Holding PJSC and AMN Mauritius LLC (a sister Company of Abraaj Capital) signed a joint venture agreement to set up Arabtec Construction Mauritius LLC in Pakistan with a shareholding of 60 per cent and 40 per cent respectively.

The objective of the company is to execute construction contracts in Pakistan.

This strategic Joint Venture combines strengths in construction expertise with exceptional knowledge of the Pakistani market with the intention of securing the construction of major developments in all major regions of Pakistan.

The first project awarded to Arabtec Pakistan is the prestigious Karachi Financial Towers for ENSHAANLC. The value of the project is over Dhs.500million and comprises 2 state of the art 37 floor Office Towers, which when completed will be the tallest structures in Karachi.

______________________________________________________________


Pakistan Joint ventures with UAE based company called Arabtec the company is joint venturing with a Pakistani based construction company.

UAE a major investor in Pakistan's economy has yet again shown its all weather friendship, regarding the earthquake funing the endorsement of many projects in Pakistan. UAE has been a friendly nation and has contributed to Pakistan. The Late ruler of UAE who has a few residences in Pakistan and a little airport he would come to Pakistan to relax like it was his second home.