Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan can export more cement if India removes curbs

PTI MAY 03, 2007

NEW DELHI: Pakistan on Thursday asked India to remove non-tariff barriers so that it could significantly enhance cement exports to the country facing a severe shortage of the key building material.

"Imports in India are subject to meeting excessive standardisation requirement and procedural formalities. Cement is one such case in point. These work as a detriment to bilateral trade," Pakistan High Commissioner Shahid Malik said.

Over 500 tonnes of Pakistan cement is lying at the Mumbai port awaiting clearance.
However, the Joint Study Group is looking into all these aspects, Malik said at a PHD Chamber seminar.

He said Pakistan would like to enhance trade with India in a business-like manner. "We are ready to float a tender, ask India what it needs and just get on with it," he said, allaying concerns that Pakistan was holding back the bilateral trade promotion.
Besides cement, Pakistan is keen on selling its surplus wheat to India while it may import tea from its neighbouring country, Malik said. At present, Pakistan imports tea from Kenya but if it gets the beverage from India at a cheaper price, it would be open to the idea.

He rejected the notion that Pakistan was blocking bilateral trade by not granting India the much-talked about 'Most Favoured Nation' status. "MFN is a misnomer," he said.

He said the Pakistan business community expected a level playing field with India and this could be granted if the non-tariff barriers were removed.
Bilateral trade was 1.2 billion dollars in 2006-07. According to a World Bank report, potential exists to take it to nine billion dollars.

http://economictimes.indiatimes.com...f_India_removes_curbs/articleshow/1999246.cms

 

[Introvert]

Al-Rajhi Group Seeks to Invest in Pakistan

(MENAFN - Arab News) Chairman of Al-Rajhi Investment Group and the CEO of Al-Rajhi Bank Abdullah Suleman Al-Rajhi has expressed keen interest in bringing more investment to Pakistan.

He made these observations during his meeting with Prime Minister Shaukat Aziz here on Thursday. Aziz told Al-Rajhi that Pakistan has become a lucrative destination for foreign direct investment in view of the availability of skilled manpower, the comparative low cost of production and a level playing field available in both foreign and local investors. Aziz said Pakistan and Saudi Arabia have close relations based on shared faith and values.

Aziz told Al-Rajhi that Pakistan has enormous potential in real estate, telecom, banking, oil and gas, textiles, cement, power generation, agriculture, transport and the hotel industry. Al-Rajhi Group expressed interest in banking and real estate sectors.

Aziz also said that Pakistan would welcome businessmen from Bahrain to invest in Pakistan.
http://www.menafn.com/qn_news_story_s.asp?StoryId=1093151981

 

[Introvert]

Rice exporters likely to meet $1.3b target one month ahead

KARACHI: Pakistan’s rice export graph has been rapidly going up for the last two years, and this year the exporters are expected to achieve $1.3 billion target one month ahead.

According to a leading rice exporter, rice growers are earning a handsome profit, therefore, it is expected that exports will hit $1.5 billion in 2007-08.

The rice export target was $1.2 billion in 2005-06.

A former chairman of Rice Exporters Association of Pakistan (REAP), Rahim Janoo, told Daily Times that REAP was looking for new markets due to increase in rice production. For the purpose an eight member delegation led by Abdul Aziz Maniya, chairman REAP, is expected to leave on May 15 to explore new markets in Eastern Europe, he told. In the first phase the delegation will visit Poland, Hungary and Romania, India has a very strong hold in East European region, and to compete with them REAP has to work hard as the demand of Basmati rice is rapidly increasing in the international market.

The prices of Basmati rice have surged by 35 to 40 percent in the international market since November 2006 due to low crop production in leading rice producing countries.

This season China, Thailand, Vietnam, India and Sri Lanka have reported crop shortage particularly in coarse rice. This situation is benefiting Pakistan where rice production is sufficient enough to export higher quantity of this staple crop.

According to chairman REAP, “the average price of Basmati is $850 per tonne now, rising from $650 per tonne last year.

Similarly, 30 percent broken Irri-6 is exported at $265 per tonne. This was $215 per tonne at the start of the season,” he added.

At the same time, prices of rice in the local market are still rising. An increase of 10 percent in Basmati rice’s price and 6 to 7 percent in non-Basmati rice’s price is recorded in the first week of May as compared to first week of April.
http://www.dailytimes.com.pk/default.asp?page=2007\05\06\story_6-5-2007_pg5_10

 

[Neo]

Musharraf for using Thar coal for energy production

NAUKOT (May 06 2007): President Pervez Musharraf Saturday said the government is sincerely working for the welfare of the people and announced a number of development projects for Thar including full utilisation of coal reserves present in the area.

He was addressing a mammoth public meeting at Naukot Fort in the remote town of District Tharparkar where hundreds of thousands of people from Thar and other parts of Sindh gave standing ovation to the President when he entered the arena.

He said the government has been working hard to bring in European and Chinese companies to explore coal reserves of Thar and set up power generation plants using coal. This will benefit the people of Thar as well as the whole country, he noted.

The President, amid thunders of applause and slogans of "long live Pervez Musharraf, long live Pakistan" said he would bring about revolutionary development in the backward area of Sindh. President Musharraf said that previous governments were not sincere to undertake development projects in the less developed areas.

President General Pervez Musharraf warned the lawyers community to desist from using the reference against Justice Iftikhar Muhammad Chaudhry for political gains and let the Supreme Judicial Council (SJC) tackle the case in accordance with the law and the Constitution. He said some elements, particularly a group of lawyers were making a purely constitutional and judicial issue, a political issue.

He asked the people to beware of such elements, who are using the reference case against Justice Iftikhar for their personal and political interests and not to follow them. President Musharraf said: "It is purely a constitutional and judicial matter and let the Supreme Judicial Council decide the issue according to the Constitution."

He asked the lawyers not get political mileage of this issue and remain peaceful and avoid confrontation. The President said the people are conscious and would not be misled by the lawyers, who are using the reference case for political purposes. The mission of few lawyers, who want to get political benefit from the reference case, would not succeed, he added.

Paying tributes to the people of Thar and other parts of Sindh for according unprecedented welcome, Musharraf said he had never seen such a huge public meeting.

He especially mentioned the development projects in Thar including improvement of irrigation system through lining of distributaries and watercourses, expanding road network, construction of schools and drinking water supply network. President Musharraf said that entire Thar area would get electricity supply while railway link has been established upto the Indian border.

The President said 86,000 watercourses would be lined at a cost of Rs 12 billion in Sindh, besides the lining of 514 distributaries. President Musharraf while referring to large number of minorities in interior Sindh said that minorities were enjoying all rights as equal citizens. They are Pakistanis whether they are Hindus or Christians, he added.

The President said the government has worked a lot for the betterment of minorities and introduction of joint electorate system for them is one of the examples in this regard. President Musharraf asked the people of Thar to go for dairy and cattle farming to enhance their income and to contribute to government's effort to promote a white revolution in the country.

The President said communication projects were being undertaken in Sindh, including M5 which was being doubled and two lanes were added to Super Highway between Karachi and Hyderabad. The President said that SSGC would be asked to broaden its pipeline network to Mirpurkhas and supply gas to Tharparkar. He said that natural gas and electricity would be provided to every tehsil and village.

President Musharraf said that ZTBL will write off loans up to Rs 0.1 million in Thar. He also announced to provide Rs 50 million to Nazim Tharparkar for development projects and the people responded with a thunder of applause and chanted slogans "Jiay Musharraf, Jiay Musharraf".

http://www.brecorder.com/index.php?id=560421&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Two-hour loadshedding daily from May 7

LAHORE (May 06 2007): Chairman Wapda Tariq Hameed on Saturday announced a new plan of a 2-hour loadshedding in the urban and the rural areas of the country in 24 hours, from Monday, May 7. This announcement came after the government gave a load management plan from Monday.

Under the plan, electricity will be switched off after every 6 hours for half an hour in both rural and urban areas of the country while the shops will be closed after 8pm, said Wapda Chairman Tariq Hameed, talking to newsmen, here on Saturday.

He said that restaurants, medical stores, bakeries hotels, and corner shops would be exempted from this restriction and could remain open till late night. He said that farmers could also take the advantage of the Wapda offer for the utilisation of tube-well for irrigation purpose. Wapda would charge only 75 paisas per unit during 10pm to 6am, he added.

The chairman said that after the implementation on the new plan Wapda would be able to save 500 MW electricity. He said that the federal government had issued a notification to the provincial government to ensure the implementation of the schedule under the "Shop and Establishment Labour Act" from Monday (tomorrow).

He said that Wapda had produced more electricity as compared to the previous year but the consumption had also increased this year and people were purchasing more domestic appliances. For example, he said, according to facts and figures, 2.8 million air conditioners were sold this year while the figure was 2.2 million in the previous year, he pointed out.

He said that 0.75 million washing machines were sold this year and 0.6 million were sold in the previous year. In reply to a question he said that All Pakistan Textile Mills Association (Aptma) offered to sell 400MW electricity to Wapda was not feasible because they were offering it at Rs 6.80 per unit. Wapda is already purchasing from various private companies at Rs 6.20 per unit.

However, the negotiations between Wapda and Aptma were going on, and a favourable outcome would be seen soon, he added. The chairman said that Wapda had invested Rs 28 billion on the transmission system and more development projects were in the pipeline.

He said that the markets and the shops in the Defence and in the cantonment area would not be exempted form the rules of shop closure at 8pm. When it was asked that all the restrictions and rules were applied on the common and the middle class and government offices and officers' residences were normally exempted form it, he said that the federal government had issued the notice to the provincial governments to reduce their electricity consumption.

The chairman said that 15000 villages would be provided electricity at the end of this year and approximately 400,000 people would get the benefit from it and only 150MW electricity would be sufficient for the new electrified villages. He said that 10 oil-based projects had been started which would be completed till 2009.

http://www.brecorder.com/index.php?id=560428&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Sugarcane output fixed at 55 million ton for next year

ISLAMABAD (May 06 2007): The Federal Committee on Agriculture (FCA), which met recently, has fixed sugarcane production target of 55 million tonnes next year, while the sugarcane in the current year is 54 million tonnes, showing an increase of 1.8 percent only.

It may be stated that sugarcane production in 2006-07, at 54 million tonnes was higher by 22.8 percent as compared with 44 million tonnes in 2005-06. The FCA meeting highlighted the overall performance of the agriculture sector. It said this sector had made gradual improvements in the sugarcane crop.

In 2005-06, the production of the crop was 44 million tonnes, in 2006-07; the production of the crop was recorded 54 million tonnes, while for 2007-08 the production of the crop is expected to be 55 million tonnes.

The FCA found that in 2006-07, its production increased by 22.8 percent as compared to 2005-06. It announced that in 2007-08, the crop would be sown at an area of 1,039.5 thousand hectares and the yield of the crop would be 53.8 tonnes per hectare that is 1.3 percent more than 2006-07.

The share of Punjab in its production in 2007-08, would be 37 million tonnes, 13 million tonnes of Sindh, 5 million tonnes of NWFP and 0.02 million tonnes of Balochistan.

It is noteworthy that the share of Punjab in the production of the crop would decrease by 0.1 percent as compared to 2006-07, the share of Sindh up by 5.08 percent, contribution of NWFP would increase by 6.9 percent, while Balochistan did not have any contribution in 2006-07, but in 2007-08, its share is estimated to be 0.22 million tonnes.

http://www.brecorder.com/index.php?id=560445&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Hasan Associates ready to set up power plant in Thar

ISLAMABAD (May 06 2007): Hasan Associates Limited has convinced Prime Minister Shaukat Aziz that it is in a position to set up 1000 MW integrated power plant in Thar even not having net worth required in the power policy, official sources told Business Recorder. The sources said, Farooq Hasan, Chairman Hasan Associates met Prime Minister on April 10 to brief him on the proposal to develop Thar coal power project.

They pointed out that according to the power policy the net worth of main sponsors is required at $30 million and main sponsors together with other sponsors (ie 51 percent of total equity) to have $114 million for execution of the project. However, Hasan Associates net worth is lower than that is laid down in by the power policy.

"To move forward on Thar coal project for which few investors are really coming forward. Farooq Hasan along with Hasan Associates be considered as main sponsors and they should jointly and severally be responsible for the development of the project," the sources quoted Farooq Hasan as saying.

He was of the view that Hasan Associates have financial resources to undertake the project for which lease has been provided by the Government of Sindh (GoS). The sources said that the Prime Minster appreciated the interest of Hasan Associates for the development of 1000 MW power project in a remote area of Pakistan.

After detailed discussion, the Prime Minister directed the Private Power Infrastructure Board (PPIB) to examine the proposal wherein Farooq Hasan together with Hasan Associates is considered as main sponsors and are jointly and severally responsible for undertaking project.

Hasan Associate had also been asked to submit a detailed proposal to PPIB clearly identifying time line of various activities for undertaking the feasibility study for 1000 MW power project based on Thar coal. The proposal should not be open-ended.

The Prime Minister said that there would be no special tariff for the project, the sources said. According to sources, the Prime Minister asked Energy Advisor to co-ordinate all activities related to the development of the power project by Hasan Associates whereas Ministries of Water & Power, Petroleum, PPIB and Wapda to facilitate Hasan Associates within the realm of reasonableness in the development of their project.

http://www.brecorder.com/index.php?id=560492&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

‘Cotton output of 20m bales to be achieved’

VEHARI: The government is making strenuous efforts to enhance cotton production with a target of 20 million cotton bales in focus, said Managing Director of Punjab Seed Corporation (PSC) Brig Iftikhar Ahmad Khan on Saturday.

Addressing a national cotton seminar at Jinah Hall here, he said: “We will soon achieve the 20 million cotton bales target that will not only enhance contribution to the national economy but also improve financial conditions of growers.”

He said cotton was being utilized as raw material or yarn by over 1000 ginneries, over 500 textile mills, 250,000 powerlooms, hundreds of hosiery, bedlinen industry units, thousands of dress making units besides offering raw material to ghee industry.

The PSC chief said that the nation earns foreign exchange through export of textile products. He advised small farmers to unite in the form of cooperative societies, adding that it will help them apply modern agronomic techniques to enhance their production.

He said that PSC has recently launched a model project under rural support programme in six villages to enhance agriculture production by offering seed to growers at low price, fertilizers free-of-cost, pesticides, micronutrients and modern technology from sowing to harvesting process.

This scheme resulted in phenomenal enhancement in wheat production from 24 maunds per acre to 62 maunds per acre, he added.

He said that Ali Akbar Group, Agri Forum Group of Pakistan, Fauji Fertilizers Company and KASB Bank have offered assistance to execute this scheme. He said that rice and cotton would also be included in this scheme which would be expanded from six to 100 villages in the country.

He said that sale of unapproved varieties should be discouraged, adding that such practices leave the varieties ineffective at the initial stages. He asked growers to beware of those elements who had been trying to sell fake varieties in the name of Bt cotton. Use of such seed not only provoked CLCV disease but also affected quality of cotton.

Progressive grower Syed Sajid Saleem Mehdi lauded federal minister for food Sikandar Hayat Bosan, saying that the minister was promoting grower-friendly policies.

http://www.thenews.com.pk/daily_detail.asp?id=54472

 

[Neo]

May 06, 2007
Shift from low to high value crops key to rural prosperity

By Afshan Subohi

KARACHI, May 5: Pakistan, a predominantly agrarian country, is still struggling to achieve food autarky and provide a decent living to its rural population. A recent study suggests changes in the cropping pattern in Pakistan to achieve better returns from rural economy.

The State of Pakistan’s Competitiveness Report by Competitive Support Fund (CFS) suggests a few reforms in the agriculture sector, including shifting of production structure toward rice and cotton, while ensuring a moderate growth in wheat production in Punjab.

Rural power structure, policy failures, low credit access, mismanagement, weak market operations, low per acre yield with a host of other related problems plague the sector that continue to perform much below its actual potential.

The aforementioned report emphasises on government investment in irrigation, water management and agriculture research. An important area for increasing the competitiveness of the agricultural sector is the reform of wholesale markets. An efficient marketing system is a pre-requisite for the agricultural diversification that forms an important plank of the development strategy.

The current Pakistan Economic Survey admits: “Agriculture and particularly its crop sector could not perform up to the expectation, especially when major crops registered a 3.6 per cent contraction in growth.

Livestock, a major component of agriculture, exhibited strong showing and pulled the overall growth in agriculture to 2.5 per cent as against the target of 4.2 per cent. Livestock has been the only saving grace as far as the performance of agriculture is concerned this year.

The State of Pakistan’s Competitiveness Report of the Competitiveness Support Fund (CSF) and the World Economic Forum in its annual Global Competitiveness Report has identified improvements of the agriculture sector in Pakistan.

“Pakistan must update its data on all the agriculture segments indicators and provide it to the international sources,” this was stated by Arthur Bayhan, CEO of the CSF. The CSF delegation was making a special presentation on Friday to the ministry of food, agriculture and livestock (Minfal) as a part of exercise in which the other relevant ministries will also be visited.

In the meeting the CEO briefed the ministry on the strengths and weaknesses of the global indicators related to the food, agriculture and livestock of the Global Competitiveness Report. He explained the rationale behind the indicators and pointed out that the data used for these indicators is not up-to-date, says a press release of CSF.

Mr Bayhan said that the Minfal has a role to play in boosting the productivity of farmers and enhancing the competitiveness of Pakistan’s agricultural sector and food industry. This can be done by connecting agricultural research more closely to the needs of the farmers and the food industry.

The benefits will accrue to both producers in terms of efficiencies and to consumers in terms of lower prices and better quality. Assisting farmers to migrate from low-value products to high-value products will also assist in improving rural prosperity.

Mr Ismail Qureshi, secretary MINFAL informed the CSF delegation that Pakistan is one of the unique countries in the world, which provides negative subsidy to the agriculture sector in view of the WTO. He further pointed out that the major difficulties for agriculture are the tariff and trade barriers, stopping Pakistan’s agribusiness to compete in the international market.

Qureshi also suggested that the ministry of agriculture should work closely with CSF on food safety and standards, fisheries, horticulture and feed side for the livestock. He also urged CSF to establish formal cooperation with the ministry.

Mr Qureshi told the meeting that Pakistan’s future lies in agribusiness and “we should not only add value but create value as well.” He also suggested that the Minfal and CSF should work together on food processing, fisheries, horticulture, meat processing and specifically on the feed side for the livestock.

The meeting chaired by secretary Minfal was attended by several high ranking officers. CSF also provides technical assistance and co-financing for initiatives related to entrepreneurship, business incubators and private-sector-led initiatives with research institutes and universities that contribute to creating a knowledge-driven economy.

http://dawn.com/2007/05/06/ebr3.htm

 

[Neo]

Sunday, May 06, 2007

‘Punjab to attract $20b investment in three years’

LAHORE: Punjab, particularly Lahore, is likely to attract an investment of more than $20 billion in next three years.

Punjab Minister for Industries Mohammad Ajmal Cheema told this in a meeting with a delegation of Al-Rajhi Investment Group of Saudi-Arabia on Friday.

The provincial minister said Pakistan has become the land of unlimited opportunities for investors as industrial sector has shown rapid growth and world’s renowned multi-national companies have come Pakistan for investment due to the investment friendly policies of the present government.

He said after Dutch company Makro, German multi-national company Metro has also started its operations in Lahore and its first store would be opened soon.

He said government was paying due attention on road infrastructure development and a number of new projects were undertaken.

He assured Al-Rajhi Investment Group of all out support for investment in real estate sector, and said government would provide all possible facilities to the foreign investors in this connection.

On the occasion, the delegation told that they had already invested in various Arab countries and now they wanted to invest in Pakistan, especially in Punjab.

http://www.dailytimes.com.pk/default.asp?page=2007\05\06\story_6-5-2007_pg5_11

 

[Neo]

Pakistan Expects Foreign Investment to Jump to Record

By Cherian Thomas

May 6 (Bloomberg) -- Pakistan's government expects foreign direct investment to jump to a record $6.5 billion this year as faster economic growth attracts companies including Philip Morris International and Standard Chartered Plc.

Overseas investments in Pakistan in the year ending June 30 may double from the previous year as the $129 billion South Asian economy expanded an average 7.5 percent in the past three years, Ashfaque Hasan Khan, the government's chief economic adviser, said today. Khan said the government wants to sustain that pace of growth for a decade.

``Pakistan needs investments,'' Khan told a seminar at the annual general meeting of the Asian Development Bank in Kyoto. ``The government will provide a macroeconomic environment that will be conducive to business.''

Pakistan is relying on foreign inflows to develop roads and power stations to foster growth and eradicate poverty. The Asian Development Bank estimates Pakistan's economy may slow to 6.5 percent in the year starting July 1 from 6.8 percent in the previous year because of inadequate infrastructure.

``Investors all over the world are very interested in Pakistan right now,'' said Ping Chew, managing director, Asia corporate and government ratings at Standard and Poor's. ``There are tons of privatizations, tons of asset sales happening.''

Asset Sales

Pakistan's government, which is selling assets to help repay $36 billion of overseas debt, estimates it will raise as much as $15 billion in five years by selling shares in state-owned companies. The government has raised more than $6 billion selling assets in the past 15 years.

A quarter of Pakistan's 160 million people live on less than a dollar a day, the World Bank estimates.

The Altria Group Inc.'s Philip Morris said in January it will buy a majority stake in Pakistani cigarette maker Lakson Tobacco Co. for $338.9 million.

Standard Chartered Plc, the U.K. bank that makes two-thirds of its profit in Asia, in September completed a $487 million purchase of Union Bank Ltd., the biggest acquisition in Pakistan's banking history.

Pakistan this year also asked China's two biggest lenders, Bank of China and the Industrial & Commercial Bank of China, to start operating in the country.

Investors are also pouring money into Pakistan as peace talks with rival India have been strengthening over the past four years.

Peace Talks

The South Asian nuclear-armed neighbors began improving ties in 2003 after coming close to a fourth war in 2002, pledging to engage in a ``composite dialogue'' aimed at ending all disputes, including Kashmir.

The two countries have restored diplomatic, sporting and transport ties since 2003. They started a fourth round of the so-called composite dialogue in March. The negotiations are designated as composite because they encompass talks on a range of issues that divide the nations.

Kashmir, at the heart of the dispute between the South Asian neighbors, was the cause of two of the three wars between them since independence in 1947 from British rule. India accuses Pakistan of backing the separatist groups and their terrorist activities. Pakistan denies the accusation, saying it only lends moral support to a freedom struggle.

``Relations between India and Pakistan have never been so good,'' Omar Ayub Khan, Pakistan's deputy finance minister, told the same seminar in Kyoto. ``Economic activity will accelerate if we make progress.''

To contact the reporter on this story: Cherian Thomas in Kyoto at cthomas1@bloomberg.net

http://quote.bloomberg.com/apps/news?pid=20601087&sid=ak.hiCcsYdEE

 

[Introvert]

Russian team seeks trade promotion with Pakistan

FAISALABAD (May 07 2007): Exchange of delegation is imperative to promote bilateral trade between Pakistan and Russian Federation, said Alexander Karyukin senior export trade representative of the federation. He was addressing a meeting of the Faisalabad Chamber of Commerce and Industry (FCCI) after visiting Faisalabad Expo-2007 in Bohranwali ground here Saturday.

He said that Russian traders are interested to purchase of raw material from Pakistan. He underlined the need to joint ventures between the two countries and said that a Joint Economic Committee has already been constituted to facilitate the joint ventures.
http://www.brecorder.com/index.php?id=561016&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Economy grows 7 percent over last four years: PRSP II

FAISALABAD (May 07 2007): Prudent macroeconomic policies as documented in Poverty Reduction Strategy Paper-II (PRSP-II) and wide-ranging structural reforms underpinned Pakistan's economic turnaround. Seven years of consistent and transparent economic policies along with economic reforms have strengthened Pakistan's economy.

According to "Draft Summary of the Poverty Reduction Strategy Paper-II", released by Ministry of Finance, Pakistan's economy has grown at an average rate of almost 7 percent per annum over the last four years and positioned as one of the fastest growing economies in the Asian region.

The size of its economy has more than doubled (from $58 billion to $132 billion) and per capita income almost doubled (from $438 to $847) during the last seven years.

It has succeeded in reducing unemployment and poverty. The fiscal and external account balances have improved vastly and consequently there has been a sharp reduction in public and external debt burden. Pakistan also succeeded in building foreign exchange reserves, which provided much needed stability in its exchange rate.

It has now emerged as an attractive destination for foreign investment which is expected to touch the unprecedented level of $6.0 billion this year from a tiny $400 million in 1998-99 - a five times increase in foreign investment in just eight years.

Pakistan continued to pursue its privatisation programme with major strategic sales taking place during the last seven years.

It completed the Poverty Reduction and Growth Facility (PRGF) arrangement with the Fund ahead of time, did not draw the last trench, and exited from a financial relationship with the Fund. Pakistan has entered international capital markets to showcase its continuously improving credit story.

It has also entered international equity markets through the listing of the shares of public and private sector enterprises in international stock exchanges.

Most importantly, it has not only succeeded in reducing both urban and rural poverty but all attendant key social sector indicators have witnessed significant improvement during the last seven years.

Pakistan's Poverty Reduction Strategy has thus been a great success. It has witnessed an impressive economic turnaround in a relatively short span. The economic landscape of the country has changed and therefore, its challenges are also different now. How to sustain the ongoing growth momentum within a stable macroeconomic environment is the biggest challenge going forward.

Linked with this are the challenges of job creation, further reducing poverty and meeting the MDGs targets, strengthening the country's physical infrastructure to support 7-8 percent growth in the medium-term and, most importantly, how to reap the benefits of demographic transition that is currently taking place in Pakistan. With a view to addressing these challenges, the government has prepared a new Poverty.

Reduction Strategy - commonly known as PRSP-II. The lessons from the last PRSP clearly suggest that strong economic growth on a sustained basis in a stable macroeconomic environment is critical for job creation, poverty alleviation and improving social indicators.

The new PRSP (or PRSP-II) is built around the lessons learnt from the last PRSP but in a global setting, that is, capitalising on the gains of globalisation while minimising its negative spill over.

According to official sources, the paper in its present form is the abridged version of the new PRSP. The detailed version of the new PRSP will be released after further consultation with all stakeholders. This has been prepared after a consultative process with all stakeholders, involving numerous workshops and dialogues with communities.

Prudent economic policies and bold, wide ranging structural reforms over seven years have changed the complexion of Pakistan's economy. The economy is no longer fragile. It is healthier today than ever before; a $60 billion economy seven years ago, is now over $140 billion; private sector is buoyant, industry, exports, imports are growing at respectable rates; domestic markets have expanded on the back of strong consumer spending; the country's debt burden is reduced to one-half; foreign exchange reserves are at an all time high; foreign investment reaching levels never reached before, the confidence of foreign investors in future prospect is strong; credit ratings have continuously improved; and most importantly, unemployment and poverty have declined significantly and social indicators have also witnessed appreciable improvements. In short, a sea change has taken place in every aspect of the economy in a short span.

The journey from low growth and macro economic stability and then onwards to recovery growth and poverty alleviation has been an arduous one but the ingenuity, skills, determination and unwavering commitment of the leadership to a home grown national vision has transformed Pakistan's economy from fragility to a resurgent one.

The poverty headcount that stood at 34.5 percent in 2000-01 has come down to 23.9 percent by 2004-05 - a substantial decline of 10.6 percentage points. In absolute numbers the count of poor persons has fallen from 49.23 million in 2000-01 to 36.45 million in 2004-05 - a fall of 12.8 million.

Rural areas of the country have witnessed a higher fall in poverty, where the percentage of population living below the poverty line has declined from 39.3 percent in 2000-01 to 28.1 percent by 2004-05, while urban poverty fell from 22.7 percent to 14.9 percent during this period.

This substantial decline in poverty has been made possible by robust economic growth, combined with the rising expenditures on the 17 pro-poor sectors identified in the PRSP.

PRSP budgetary expenditures on the 17 pro-poor sectors amounted to Rs434.6 billion in 2005-06, while cumulative PRSP expenditures (budgetary as well as non-budgetary) during 2001-06 amounted to Rs1,441 billion, with the budgetary expenditures averaging 4.7 percent of the GDP during this five-year period.

http://www.brecorder.com/index.php?id=560947&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

OGDC and PPL get go-ahead to restart exploration work in Balochistan

ISLAMABAD (May 07 2007): The federal government has finally given a go-ahead to the Oil and Gas Company Limited (OGDC) and the Pakistan Petroleum Limited (PPL) to restart exploration activities in Balochistan to find the new oil and gas reservoirs.

The law-enforcement agencies will provide security to oil and gas exploration companies for exploration work. The concerned authorities have given more than one presentations to the governor and the chief minister of Balochistan on overall law and order situation in the province and termed the security arrangements as fool-proof for protecting the oil and gas exploration companies field staff.

Sources said following the central government direction, the OGDC, the public sector E&P, has mobilised its field staff and machinery to undertake drilling work at Jhall Magsi field in Balochistan.

Sources told Business Recorder on Sunday the OGDC technical team and machinery have already reached Jhall Magsi to undertake initial work for drilling.

The OGDC intends to utilise all the available resources to complete drilling work at Jhall Magsi as early as possible. Jhall Magsi will be followed by other drilling activities at other potential fields in Balochistan.

The OGDC has an ambitious plan for exploration in Balochistan. It has exploration plan for the current fiscal year includes 9 wells in Balochistan. However, the pace of exploration work was linked with improvement in law and order situation of the province.

Balochistan is enriched with oil and gas. PPL's major discovery at Sui, a major source so far for the last over five decades is its ample proof. However, unrest and law and order problems kept oil and gas companies away from that province. Things turned worse some two to three years back due to war-like situation between the law-enforcement agencies and some tribes chiefs, including deceased Nawab Akbar Bughti of JWP.

The OGDC and PPL, which were actively engaged in the province to explore new reserviours had to pack-up after some untoward incidents. The E&P and gas distribution companies have suffered financial loss due to heavy firing at their fields and pipelines blasts in the recent past. However, with the changing political scenario in that province, the OGDC and other E&P companies are hopeful of good time in Balochistan now onward.

http://www.brecorder.com/index.php?id=560923&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

ADB to fund Rs 4 billion hydel power projects in Punjab

LAHORE (May 07 2007): The Punjab government under Renewable Energy Sector Development Programme has taken up preliminary tasks of establishment of Punjab Power Development Company (PPDCL) and construction of 5 Hydel Power Projects in the province to enhance the energy production in the country. The loan negotiations for financing of Rs 4 billion have already been completed.

The Punjab government will contribute 20 percent whereas, rest of the amount would be provided by the Asian Development Bank, says a handout issued here on Sunday.

Punjab Minister for Power, Chaudhry Armaghan Subhani disclosed this in a meeting held to review the pace of establishment of PPDCL in his office on Saturday. He said that as per loan negotiations, Punjab government intended to establish a corporate body of PPDCL for the construction of five hydel projects, which would be fully functional before June this year.

He said that it would also be given financial and operational independence by the said date. He said that the company would devise a business plan and strategic development roadmap, so that a single corporate body should be held responsible for given assignment not later than June 30, 2008.

The minister said that the Company would carry out its operations on war footing basis so that the development of renewable energy resources could be taken up on fast track.

He said that the government would also seek cooperation from private sector in order to get maximum output. He said that the Company would not only look after the construction work of the Hydel Power Projects in the province but it would further point out the potential sites along with the preparation of their feasibility reports.

Chaudhry Armaghan Subhani directed the Chief Engineer (Power) to ensure the in-time establishment of the Power Company and keep him updated by submitting a weekly progress report on regular basis in this regard.

http://www.brecorder.com/index.php?id=560948&currPageNo=1&query=&search=&term=&supDate=