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SINGAPORE, May 4: Singapore Telecommunications Ltd, Southeast Asia’s largest phone company, said on Thursday it remained keen on acquisitions in Pakistan and South Asia.

“Our investment focus remains in Asia. Pakistan, South Asia and Asia in general continue to be the universe for our investments,” SingTel Chief Financial Officer Chua Sock Koong told reporters at a briefing.

SingTel has said it would continue to explore opportunities for new acquisitions and to raise stakes in its regional mobile investments to drive future growth.—Reuters
 
SINGAPORE, May 4: Pakistan is turning to India to satisfy its sugar cravings and cover a shortfall in domestic supplies, while Vietnam is in the market to buy 150,000 tons of sweetener for shipment no later than August.

But Indonesia, Southeast Asia’s largest consumer, is likely to avoid the market this year because of expectations of increased sugarcane output, industry officials said on Thursday.

“High prices have encouraged farmers to grow sugarcane and expand their plantations,” said Adig Suwandi, corporate secretary at the state plantation firm PTPN XI.

Indonesia has scrapped a plan to issue more permits to buy white sugar this year due to ample stocks, and some officials said it might even hold back on purchases in 2007. Jakarta issued a total of 300,000 tons of white sugar import permits last October.

“If it has to buy sugar at all, then the amount won’t be more than 150,000 tons,” Suwandi told Reuters in Jakarta, adding that the sweetener would only be used as a buffer before the crushing season begins in April or May next year.

Indonesia’s white sugar production is likely to rise to 2.48 million tons this year from 2.24 million tons in 2005 as strong global prices lead to increased sugarcane production.

Raw sugar prices rose over 60 per cent last year and spiked to a 25-year high of 19.73 cents per lb in February. Indonesia’s annual consumption is estimated at 2.6 million to 2.7 million tons in 2006, steady from last year.

Dealers said India was more than happy to sell sugar to Pakistan because it will likely have an annual surplus of around three million tons over the next few years as a result of healthy crops boosted by monsoon rains.

India is expected to export more than one million tons of sugar in the crop year to September 2006, with half of the shipments going to Pakistan, said dealers.

Pakistan, which devours 3.8 million tons of sugar a year, has been a steady buyer in the international market after output dropped to 2.6 million tons in this production year from 3.2 million tons previously as farmers switched to other crops with better returns.

A government estimate shows Pakistan will need at least 800,000 tons of imports in 2006 to meet domestic demand.

A total of 325,000 tons of sugar, mainly from Indian mills, were booked during January to March by Pakistani traders, said Raees Ashraf Tar Mohammad, a Karachi-based commodity importer.

“The prices were between $470 and $485 per ton, cost and freight Karachi. A number of cargoes have reached Karachi while many are due to arrive in May and June,” he said.—Reuters
 
By Mubarak Zeb Khan

ISLAMABAD, May 4: India has formally asked Islamabad for trading through a negative list concept as agreed under the South Asia Free Trade Area (Safta) for increasing formal trade between the two countries.

Talking to Dawn after the conclusion of a two-day roundtable on Safta here on Thursday, Indian High Commissioner to Pakistan Shive Shanker Menon said that the Indian authorities had raised the issue with their Pakistani counterparts in a meeting of Saarc commerce minister held in Saarc secretariat recently.

He said Pakistani side agreed to look into the Indian demand.

When asked whether India would take the issue to Saarc Dispute Settlement Committee, the Indian envoy replied that they wanted trade not disputes.

“We in India hope that from July 1, 2006 all of us in Saarc will have only negative lists and that the movement restrictions, which go against the very essence of Safta, are also abolished. If these two conditions are not met, then Safta has little operational meaning,” the envoy said while addressing the roundtable, which was organized jointly by Saarc Chamber of Commerce and Industry and the Commonwealth Business Council (CBC).

Mr Menon said if these conditions were met it could bring about trade diversification and help to formalise informal trade.

For Safta to realise its potential, he said it would be logical to extend its scope to services sector and investments.

Secretary Commerce Syed Asif Shah told the gathering that reduction in tariffs alone could not achieve sufficient benefits from the free trade in the region. “Many Saarc countries including India, the biggest economy of the region, have a number of non-tariff barriers (NTBs) with an aim to restricting imports”, Mr Shah added.

The secretary said that granting of MFN status to India was a bilateral issue and it was part of the composite dialogue.

Mr Shah said under the positive list of import from India, no India specific tariff or NTBs were in place. Every commodity, he said which was importable from India, in accordance with the current import policy order, attracted rates of duty, which were applied on MFN basis. There would be tariff reduction under Safta on items currently importable from India, he added.

The secretary said during the last 10 years, the list of importable items from India had expanded manifold and the process was ongoing.

Akhtar Mahmood, an expert on international trade, said that Saarc could not develop into a full free trade area if it excluded for too long more than 50 per cent of its GDP from its free trade rules.

The Sri Lankan commerce minister Jeyaraj Fernandopulee also called for complete elimination of NTBs to get maximum benefits from the free trade regime.

Former finance minister of Nepal Madhukar Shumshere J. B. Rana also proposed for inclusion of services sector under the ambit of Safta. He was of the opinion that trade in services would increase people to people contact in the region.
 
By Saleem Shahid

QUETTA, May 4: Canadian High Commissioner David B. Collins has said that oil and gas, minerals and telecommunications sectors in Pakistan offer a promising outlook to Canadian investors.

Speaking to business leaders and traders of Balochistan at the Quetta Chamber of Commerce and Industry on Thursday, he said that during the last two years Canadian companies had become more active in pursuing business opportunities in Pakistan.

“The result is this decade is witnessing a shift in emphasis in Canada- Pakistan relations from aid to trade,” he said.

Pakistan, the envoy said, now ranked much higher amongst Canada’s trading partners with a two-way bilateral trade exceeding $550 million from a meagre $200 million a few years ago.

He, however, emphasised the need for an improved security situation in the region, including Pakistan, to attract ample foreign investment. “In this region, I mention ‘security’ as an issue. Canadians believe that to do business either as importer or exporter requires a reliable security framework and the rule of law, both civil and criminal.”

Highlighting some major joint ventures between Canadian and Pakistani companies, he said that Barrick Gold of Canada was investing about 120 million Canadian dollars in the copper-gold mines in the Chagai district. The site, he pointed out, offered one of the largest copper and gold mines in the world and the two companies had already started a 75 million dollars programme.

He also mentioned some other projects involving the Canadian companies.

However, he said that Pakistani exports to Canada had been gradually declining in recent years and urged the Export Promotion Bureau to look into the causes as Canada’s consumption had not registered any decline.

Referring to reports that Canada might negotiate a free trade agreement with Pakistan, the high commissioner said that since Canada currently had a full agenda of FTA negotiations it cannot pursue FTA with Pakistan at this time.

He said the volume of trade between Asia and North America would continue to grow at a fast pace and added that Pakistan could and should play a greater role in Asia’s evolution.

“This is why Canada is keen to strengthen its presence in Asia and Pakistan,” he urged.

“With each (passing) day we invest more in the people of Pakistan. In healthcare, education and training, especially for women, Canada is helping its Pakistani partners to be competitive in the new global marketplace,” he said.

The high commissioner said Canada had relieved $293 million of Pakistan’s debt and added that the creation of a ‘rupee counterpart fund’ would help focus on improvements to Pakistan’s education system.

He called for increasing bilateral trade and foster longer-term sustainable and mutually beneficial linkages between the business communities of the two countries.

Answering a question, he said a Canadian trade delegation was expected to visit Pakistan in autumn.

Earlier, Quetta Chamber of Commerce and Industry president Mohammad Saddique Kakar highlighted the fields in which Canadian investors could invest.
 
May 4, 2006. 05:38 PM

Barrick Gold Corp. (TSX: ABX), the world’s biggest gold producer, says it’s open to further expansion in Pakistan — which it considers more politically stable than some countries in South America.
“Pakistan ... from a mining point of view, from a business point of view, is among the better countries (to invest in),” founder and chairman Peter Munk told shareholders during the Canadian company’s annual meeting Thursday.

“If I had the choice to put my money in one of the Latin American countries run by (Bolivian president) Evo Morales or (Venezuelan President Hugo) Chavez — I know where I’d put my buck,” he said, referring to moves to nationalize resources in those two countries, to the detriment of foreign investors.

Venezuela’s congress formally approved new joint ventures that bring 32 oil fields in the country under state control Thursday, instead of letting them continue to be run independently under contract by private oil companies.

Earlier this week, Morales sent troops to occupy foreign-run gas installations in Bolivia.

Barrick bought a stake in the Reko Dig copper-gold project in Pakistan for $100 million (U.S.) in February from Antofagasta PLC, a Chilean mining group.

When CEO Greg Wilkins went to Pakistan in connection with that project, Munk said, he was received by both Prime Minister Shaukat Aziz and President Pervez Musharraf.

“If a country has time to have its president, who’s in the middle of a politically, highly charged region, courted by Soviets, China, Muslims and America ... sit down ... with Greg to encourage him to invest money and invite a Canadian company to come in to develop the country’s resources, it shows you what a great country it is,” Munk said.

Although the company’s assessment of opportunities in that country is still in the early days, Wilkins said Barrick would be ``very interested” in more projects in the area, despite challenges posed by the presence of Al Qaeda in its various regions.

“We have a $20-million joint exploration program for (Reko Dig) alone and the Tethyan belt itself — which is actually geological belt that runs from Turkey all the way to Iran and into Pakistan is really quite prospective,” he said.

“So we’ll be looking to take advantage if we can (and) see what opportunities exist for us.”

Kerry Smith, an analyst with Haywood Securities, said Pakistan is attractive to Barrick because it would provide the company with a large deposit that will have a long life.

“They’ve got a quality partner, a big project and the entry cost was quite reasonable,” he said.

But Barrick isn’t completely turning its back on Latin America just yet, because while a growing leftist trend is raising concerns, some countries are fighting to address those issues and remain attractive to investors, Wilkins said.

A senior Argentine official, for instance, has offered to make a presentation to Barrick’s board to “give us the assurance that Argentina isn’t going that way,” Wilkins said.

“The extremism of what Mr. Morales has done is going to knock those other guys back and perhaps off that agenda.”

Barrick, a Toronto-based miner, has about 22,000 employees around the world. The company reported a jump in first-quarter profit to $224 million US from a year-earlier $66 million (U.S.) late Wednesday, boosted by strong metal prices and gains made from the acquisition of Vancouver-based Placer Dome.

The gold company’s earnings, reported in U.S. dollars, translated to 29 cents a share, up from 12 cents per share in the same period last year, beating analysts expectations.

Michael Jalonen, and analyst with Merrill Lynch, said he was expecting earnings to come in at 19 cents per share.

“We attribute the variance to our assumption the company would deliver production to lower-priced hedge positions during the quarter, thus recognizing a lower gold price than actual for Q1 2006,” he said in a note to clients.

Barrick bought Placer Dome in a $12.1-billion-Cdn deal completed March 15. Barrick expects to close the deal to sell some of Placer’s assets to Goldcorp Inc. in May.

The company reiterated its 2006 gold production forecast of 8.6 to 8.9 million ounces at $275 to $290 US per ounce.

On the Toronto stock market Thursday, Barrick shares closed up over six per cent, or $2.16, at $36.56 Cdn, with over 9.3 million shares changing hands.
 
BAKU (May 06 2006): Prime Minister Shaukat Aziz on Friday called for the establishment of an ECO free trade area and intra-regional oil and gas pipelines, saying an energy grid could create inter-linkages necessary for making the Economic Co-operation Organisation (ECO) more effective.

Addressing the ninth ECO Summit, the prime minister urged closer co-ordination of policies among the member states and said, "For the ECO to become a coherent, effective and seamless organisation, it must create inter-dependencies and synergies, especially, in the areas of energy, security, transportation linkages and trade promotion." He said efforts must be made to establish intra-regional oil and gas pipelines as well as power grids from energy rich to energy deficient countries.

The prime minister said that the ECO region was well placed to become a major hub of energy supply. "We can take the initial step of diversifying supplies within the region," he said, and termed the launch of the feasibility study on interconnection of power systems as a welcome development.

While sharing Pakistan's vision for the ECO, he said establishment of a regional power grid would contribute to the economic integration of our region.

He also called for establishment of an ECO free trade area and urged finalisation of the Optional Protocol on fast track through an early consensus.

He said Pakistan has assumed the role of the co-ordinating country for Ecota and it believed that its establishment was well within the realm of possibility, provided the member states gave it the highest priority.

He said transportation linkages needed to be enhanced to provide corridors for co-operation, people-to-people contacts, tourism, cultural exchanges and free flow of ideas. The prime minister said improved transportation linkages would also facilitate greater flow of intra-regional trade enabling better regional specialisation while promoting complimentarities in the economies for common advantage of all member states.

He cited the example of Pakistan's trade with Afghanistan and said it has risen from less than $100 million only four years ago to over $1.2 billion, at present, while the projection for 2006 was $1.5 billion. He said free trade opens the door to wider markets.

Shaukat added that the ECO represents best hope to foster trade and economic linkages in the region. He referred to the Transit Transport Framework Agreement, which would come into force this month. He said the ECO Trade and Development Bank has also set up its board of governors, while several important annexes to Ecota had been concluded, generating confidence in its future.

He, however, said that the region has been facing "multiple new challenges" ranging from disease and malnutrition to environmental degradation and natural disasters. He attributed inordinate delays in undertaking key activities as one of the reasons impeding ECO's growth, adding that it still had a long way to go to achieve the goal of regional integration.

Shaukat said the ECO had also taken positive initiatives, including plans to deal with avian influenza and develop a regional centre for risk management of natural disasters.

He said the devastating earthquake in Pakistan in October had underscored the need for such plans for disaster mitigation. He expressed his profound gratitude to member states and the ECO Secretariat for a generous response in the aftermath of the October 8 earthquake.

He said Pakistan could play a pivotal role in the region owing to its location and to bridge the regions of Central, South and West Asia while providing the shortest route for the landlocked Central Asian countries through sea.

He said work on a deep-sea port at Gwadar would be completed soon, while construction of road and rail transportation networks was also underway to complement Pakistan's air links with these vital regions.

He informed the meeting about the ongoing talks for the Iran-Pakistan-India and the Turkmenistan-Afghanistan-Pakistan gas pipelines, which he said, would help in bringing the energy resources of the ECO region to South Asia.

Talking about establishing a power grid from Tajikistan to Pakistan, he said that there was also the potential to establish such pipelines through Pakistan to Western China.

Shaukat said Pakistan respected Iran's legitimate rights under the NPT, including the right to peaceful use of nuclear technology under appropriate safeguards. About the Kashmir dispute, he said it "lies at the heart of tensions between Pakistan and India."

About Afghanistan, he said its peace and stability was in Pakistan's national interest and vital for regional security and development.

He said Pakistan would continue to support the Government of President Hamid Karzai and contribute to its reconstruction.

On the issue of terrorism, he said it threatened the entire international community. "No country is immune from this menace. Pakistan has long been its victim. We oppose terrorism in all its forms and manifestations," he added.

He said that a lasting solution to that problem required elimination of its root causes.

He also urged the member states to raise their voice, as Muslims, against the linkage that was being drawn in some societies between Islam and terrorism.

He said Islam is a religion of peace, tolerance and harmony, which abhors violence. He called for measures to promote better understanding of Islamic values and said there was a need for a dialogue between the Muslim world and the West.

Meanwhile, Shaukat extended full support to the territorial integrity of Azerbaijan, saying Pakistan was against occupation of its land by Armenia.

He said Pakistan was against the occupation of territory of Azerbaijan by Armenia, and demanded vacation of its territory.

Shaukat said: "We fully and completely support the stand of Azerbaijan as it is just and fair, and we will continue to do so.

Earlier, leaders from Pakistan, Afghanistan, Iran, Turkey, Azerbaijan, Kyrgyzstan, Tajikistan, Uzbekistan, Kazakhstan and Turkmenistan discuss economic development in the region, which is rich in resources but largely underdeveloped.

Top officials and heads of state from the 10-member Economic Co-operation Organisation (ECO) discussed cross-border trade, transport infrastructure projects and regional security.
 
ISLAMABAD (May 06 2006): Visiting US Under-secretary of State for International Trade and Commerce Franklin Lavin on Friday refused to comment on the issue of Iran-Pakistan-India (IPI) gas pipeline project prior to a meeting with Prime Minister Shaukat Aziz, scheduled to be held on Saturday.

"I will not comment on the IPI project. I do not want to make public what I would discuss with the prime minister, who was also my boss in the Citibank," he said, while replying to questions at a press conference at the US Embassy.

The questioners had sought his comments over the commitment made by Iranian President Ahmadinejad in Baku with Prime Minister Shaukat Aziz that the decision on IPI gas pipeline would be taken within 90 days.

When asked, since one of the US magazines has ranked Pakistan as a failed state, but he was stressing American companies to explore investment opportunities here, Lavin said, he did not read the article but media was independent in the United States. However, the views expressed in the article have nothing to do with the official policy of his government.

"On the basis of my interaction with Pakistan and the American business community, I can say with confidence that Pakistan is opposite to the failed state," he said, adding that Pakistan's economy was booming and performing well on all fronts.

He said that there were some challenges, but Pakistan has the capability, leadership and necessary policies to keep the economy moving ahead.

"Pakistan's economic growth is among the top nations of the world and it is serving the people very well," he said.

Lavin, whose visit was the follow up of US President Bush's visit, said that his country had contributed a lot for the rehabilitation of earthquake victims, which somehow changed perception about America, but admitted that there were anti-America sentiments in the Pakistani society.

He said he has discussed bilateral economic issues, including Bilateral Investment Treaty (BIT), arbitration mechanism, Intellectual Property Rights (IPR), WTO in the light of Doha round, adding that the government has taken several steps to discourage IPR violations, but a lot has to be done to stop this practice in pharmaceutical and optical discs.

To a question regarding Pakistan's role in Central Asia, he said that there were a lot of investment opportunities in the newly independent states and Pakistan could invest there as the US companies were also exploring the same possibilities.

"My advice to the American entrepreneurs would be that if they are serious global companies they must be serious about Pakistan as the country is on a strong path of economic development, trade barriers are being eliminated and deregulation, privatisation and liberalisation are keeping the economy moving," he said. Lavin said that there was enormous potential for the US investment in Pakistan and they need to develop a strategy to participate in marketing.

When asked that on the one hand, the US government issues different advisories to its citizens, barring them to visit Pakistan and on the other, he was asking the companies to invest in Pakistan, he said, "There are security issues in Pakistan, but there are also enormous economic opportunities."

"The people who invest in Pakistan want protection and I have discussed this issue with the Pakistani officials today," he said.

He said that the American administration is introducing legislation in the Congress to pave the way for establishment of economic zones in the tribal areas of Pakistan. Goods produced in these zones would enjoy duty-free access to the US market.

He said there was no timeframe for signing of the BIT and presently both the countries were resolving some of the issues. Signing of the treaty would convey to the world that investment in Pakistan enjoy best possible treatment and legal protection, he added.

He said that Pakistan's exports enjoy open access to the United States. Pakistan's exports to the US grew from $2.9 billion in 2004 to $3.3 billion in 2005, showing 10 percent increase. He said that last year the United States had a trade deficit of $2 billion with Pakistan.

He said the Pakistan-US economic and trade ties are moving in the right direction.

When asked to comment on Pakistan's desire to become a trade corridor for Central Asia and China, he said, it is in the interest of both Pakistan and the United States to have closer economic linkages with the Central Asian Republics. Pakistan offers constructive platform for economic activity in Central Asia, he added.
 
KARACHI (May 06 2006): The Iran-Pakistan-India (IPI) pipeline will provide 2.8 billion cubic feet gas per day to the country at a cost of $2-3 billion/annum and the focus is to integrate it with the system by 2011 as, after 2010, local production will start to decline.

This was stated by Inter State Gas (Pvt) Limited Managing Director Hasan Nawab during an interview with 'AAJ Markets'. Pakistan and Iran have agreed to work on bilateral (Iran-Pakistan) gas pipeline project, regardless whether India participates in it or not. The estimated cost of the project is around 2.5 billion dollars for Pakistan whether India joins the project or not.

Hasan said that whether India joins or not, Pakistan can not delay the project, although if India joins, the project would be more feasible.

About security measures of the project, he said it was a natural, normal requirement and was certainly under consideration. There would be an element of cost related to the issue but it would not have any major impact on the overall project. The royalty issue is also under consideration and it will be negotiated according to international norms. He said that nothing has been decided on this part.

Gas pricing formula is another area that needs to be finalised, though gas prices are somehow link with crude oil, which is not only volatile but also difficult to predict. The government motive is to design a system, which can limit price volatility, he added.

For gas distribution he said two companies, SSGC and SNGPL, cater distribution in Pakistan, and distribution of this new facility would be under them, even if they got privatised.

The two companies are distributing 2.8 billion cubic feet and the new facility of 2.8 billion cubic feet would further increase their distribution capacity.

He said that available gas reserves in the country are far less than the country's requirement.
 
M ISRAR KHAN

ISLAMABAD (May 06 2006): The government has proposed Rs 350 billion outlay of Public Sector Development Programme (PSDP) for FY 2006-07, which is about 14.4 percent more than Rs 306 billion of the current year.

Sources told Business Recorder that allocations proposed for federal development programs were likely to be around Rs 225 billion, with top priority to water and power and infrastructure sectors development.

This would represent an increase of more than 10 percent over the current federal PSDP allocation of Rs 204 billion.

The provincial development PSDP allocation might range from Rs 70 to Rs 80 billion, against this year's allocation of Rs 68 billion, they said.

It is worth mentioning that social sector was not on government's top priority list. However, their allocations would be increased accordingly in the next year. There will be more jobs creation through the enhanced allocations for PSDP and it would indirectly have positive impact on the economic and social life of the people.

Increase in the PSDP allocation has also been proposed keeping in view the United Nations Millennium Development Goals (MDGs) upon which Pakistan wants to make a considerable progress.

The proposed outlay is Rs 350 billion, of which federal PSDP allocation is estimated at Rs 225 billion and some other new budgetary measures would now be discussed in the Annual Plan Co-ordination Committee (APCC) meeting on May 21, where these may be revised and later submitted to the National Economic Council (NEC) for approval before the end of this month.

PSDP outlay also includes more financial resources for Water and Power Development Authority (Wapda) and National Highway Authority (NHA), actually outside budgeted PSDP, which is estimated to range between Rs 316 billion and Rs 320 billion, sources added.

They said that for only water sector, the Ministry of Water and Power has actually demanded Rs 90 billion. However, now the proposed amount for this sector is about Rs 70 billion, which is about 60 percent or near Rs 27 billion more than Rs 43.62 billion allocated for this year. Power sector would also get a sizeable share in the development funds in the next fiscal, they added.

The expansion in the allocations for water sector has been proposed keeping in view the construction of big dams already planned.

The initial work on Bhasha and Munda could start next year and if the government announced the construction of Kalabagh Dam, there would definitely be need for more financial resources.

According to sources, water and power sector would be followed by transport and communication where most of the allocations would be made for National Trade Corridor (NTC), which is of great significance for the economic and social development of the economy. Some funds have been allocated for Northern Areas, Federally Administered Tribal Areas (FATA) and special programs
 
ISLAMABAD (May 06 2006): Under Secretary for International Trade, the US Department of Commerce, Frank Lavin called on Minister for Health, Muhammad Nasir Khan, here on Friday.

While briefing the delegation about business friendly environment of the country for investors in pharmaceutical industry, he said Pakistan is the best place for investment owing to its easy access to Central Asian Countries, Middle East, Africa and S countries.

The results of which is evident from the fact that Pakistan has exported pharmaceutical products amounting to $61.8 million to more than 80 countries world-wide during last year.

The Minister also discussed the Intellectual Property Rights (IPR) issues and measures of drugs and medicines in the country and said necessary legislation in respect of Data Exclusivity are under review in consultation with stakeholders including overseas investors.

Frank Lavin appreciated the investment policy of the government and urged the foreign investors to take advantage of it.
 
KARACHI (May 06 2006): The private sector carrier, Airblue would soon add socio-economic routes to its system to be able to stand alongside national carrier, Pakistan International Airlines (PIA), on domestic operations.

Airblue Chief Executive Officer (CEO) Shahid Khanqan Abbasi told the Business Recorder here on Friday that the airline was ready to launch its inaugural flight to Gwadar by the end of this month.

Exact date and timings would be announced sometime next week.

He said that two 19-seater Beach Craft 1900 aircraft would be pressed into service to provide air travelling facility to the people of Balochistan to enable them enjoy the benefits which had, hitherto, eluded them.

To begin with, there will be two flights a day to Gwadar. Subsequently, the service would be extended to cover Turbat, Nawabshah and Sukkur by the end of the year, he said.

Until last year, socio-economic routes were on Airblue's network and the airline had started operating on some of these routes, but A-320 operations on these routes were found unfeasible because enough traffic was not available and had to be suspended.

However, during the period, Airblues' operations remained suspended on socio-economic routes, it paid regularly the amount due for not operating on these routes to the Civil Aviation Authority (CAA).

While granting additional routes/frequencies to private airlines in July last year, the CAA had mandated that private airlines should continue operations on socio-economic routes or pay for every flight at the rate of Rs 62,500 per flight not operated on these routes as required. Any default on the regular payment of royalty to the CAA shall subject private airlines to penalty/debarring from operating additional international frequencies/routes. The National Aviation Policy (NAP) - 2006, which is awaiting cabinet approval, has laid down certain conditions for domestic operations.

To ensure that domestic operations are adequately spread and people of remote areas have reasonable access to air services, the following minimum requirement of operations on different domestic routes by Pakistani airlines should be mandatory:

-- Minimum 10 weekly frequencies on trunk routes.

-- Minimum two weekly frequencies on primary routes.

-- Minimum two weekly frequencies on secondary routes.

For operations on secondary routes, new airlines should have a moratorium of three years from the date of starting operations and all fares would remain deregulated.

Trunk routes include Karachi, Lahore, Islamabad, Peshawar and Quetta. Primary routes (jet operable) include Multan, Faisalabad, Sukkur, D.G.Khan, Rahimyar Khan, Bahawalpur, Nawabshah, Skardu, Pasni and Jacobabad, and Secondary routes include Moenjodaro, Zhob, Saidu Sharif, Dalbadin, Bannu, Parachanar, Sehwan Sharif, D.I.Khan, Hyderabad, Ormara, Khuzdar, Rawalakot, Muzaffarabad, Chitral, Gilgit, Gwadar, Panjgur, Turbat and Jiwani.

About UK operations, Shahid Khaqan Abbasi said the Airblue's plan to start operating to the United Kingdom had, however, been delayed due to non-availability of suitable aircraft.

The government of Pakistan has already written to the UK government, nominating Airblue as the second carrier to fly to that country under the multiple designation of airlines, which is already available.

Shahid Khaqan Abbasi said that Airblue was looking for A-330-200 aircraft for the UK operations and are in touch with several leasing companies in this connection.

He expressed the hope that by winter, the airline might be able to add the new aircraft to its existing fleet and soon thereafter start flying to the UK.
 
Saturday May 06, 2006

ISLAMABAD: Federal Minister for Commerce Humayun Akhtar Khan has said that Pakistan wishes to have seamless connection with the US and the world economy for movement of goods, services and capital.
He stated this while discussing bilateral trade and economic relations with US Under Secretary of State for Trade and Commerce Mr. Franklin L Lavin who called on him at his office Friday.

The Minister also discussed the issues regarding the next meeting of Trade and Investment Framework Agreement (TIFA) ,early conclusion of Bilateral Investment Treaty(BIT) , Free Trade Agreement and intellectual Property rights.

The Minister said that it was important to conclude BIT early. He said Pakistan had shown considerable flexibility in accepting the USA draft text.

BIT’s successful conclusion rested on one or two outstanding issues, and hoped that the US would also show the same flexibility so that a convergence of interests might occur, he added. The Minister said Pakistan had a very keen desire to sign an FTA with the US.

He said that FTA with US would send a positive signal about Pakistan’s policy environment. On the issue of intellectual property right, Mr. Khan reiterated Pakistan’s commitment to improve Intellectual Property Rights(IPR) environment.

He mentioned that last year Pakistan’s Federal Investigation Agency was given additional legal cover for enforcement of IPR laws and Pakistan was successful in almost eliminating optical media piracy -- a fact that was recognized in the USA by moving Pakistan from priority watch list country to watch list status. The Minister assured Mr. Lavin that Pakistan would take all necessary steps to address IPR issue in pharma sector.

The Minister also expressed his desire for early implementation of reconstruction opportunity zones in the tribal areas of Pakistan as announced by the US President in his recent visit to Pakistan. Mr. Lavin suggested that Government of Pakistan meet all US companies working in Pakistan at a proper forum in order to know their concerns regarding making investment in Pakistan and subsequently devise a mechanism to address their concerns as it would go a long way in attracting foreign investment in Pakistan.

Similarly, he said that Government of Pakistan should identify and negotiate with the major US companies who were not presently working in Pakistan and try to address their investment related concerns so that they might also invest in Pakistan. The Commerce Minister agreed to the proposal. Mr. Lavin appreciated Pakistan’s trade and investment policies as liberal and attractive. Pakistan’s exports to the US over the last three years have been increasing.

From US$2245.6 million in 2000-01, these stood at $3446.593 million in 2004-05. Exports from US to Pakistan have also increased from US$565.47 million in 2001-02 to US$1562.27 million in 2004-05. The balance of trade is in favor of Pakistan. Mr. Khan said that he was looking forward to working with the newly appointed United States Trade Representative (USTR) Ms Susan Schwab. Both the sides agreed to develop deeper appreciation of the potential for the bilateral trade relations to grow in future.
 
ISLAMABAD, May 5: Pakistan will seek next week support of multilateral and bilateral lenders to fund its over $40 billion programmes relating to infrastructure development, energy and economic growth so that it could become multiple corridor for energy, trade and transportation for the region.

The government in collaboration with the World Bank has convened the sixth annual meeting of the Pakistan Development Forum (PDF-2006) on May 10-11 to get commitments from its development partners for the next year’s development programme.

The PDF, formerly Aid-to-Pakistan Consortium, is an annual feature ahead of federal budget aimed at presenting the country’s economic performance and development needs to the international lenders. The PDF meeting sets the stage for multilateral funding arrangements and individual loan commitments.

The theme of this year’s PDF is “Drivers of Economic Growth - Unleashing the Potential of the Private Sector”. President Pervez Musharraf and Prime Minister Shaukat Aziz are also expected to attend the conference.

Previous PDFs were used to outline Pakistan’s development partners the wide-ranging reform programme initiated by the government. The PDF 2006 specifically seeks to highlight its pro-growth, pro-investment and pro-poor policies at nine sessions devoted to specific sectors.

These include: the private sector, the SME sector, second-generation reforms, environmental sustainability, social protection, infrastructure, Millennium Development Goals, devolved services and aid effectiveness.

The government will be attempting to showcase Pakistan’s achievements to date, as well as the challenges it faces in pursuit of these policies and its future strategy.

The forum will also be an opportunity to gauge the nature of the partnership requirements with Pakistan’s development partners in not only helping to meet those challenges but also in contributing to a reformed social, economic and political landscape.

Two sessions would be dedicated to economic growth, specifically to the role of the private sector and small and medium enterprises (SMEs) respectively and improving competitiveness through private sector. Another session will relate to environmental sustainability and social security and safety nets for poverty reduction.

The most crucial sectors where the lenders support is required would be infrastructure development for economic growth. In this sector, broad parameters of strategy for energy, water and national trade corridor will be presented as government’s top priority.

Focus will also be on second generation reforms including agriculture, power, banking, civil service as well as on-going legal reforms and the challenges it faces.

The penultimate session “Improving Aid Effectiveness through Implementation of Paris Declaration” will also look at where the government and development partners stand on their respective commitments and lay out a roadmap for the coming year.
 
ISLAMABAD, May 5: US Under-Secretary of State for Trade and Commerce Franklin L. Lavin has urged Pakistan for early addressing the concerns of US companies in order to attract further investment.

He was talking to Commerce Minister Humayun Akhtar Khan here on Friday. During the meeting, issues regarding the next meeting of Trade and Investment Framework Agreement (TIFA), early conclusion of bilateral investment treaty (BIT), free trade agreement (FTA) and intellectual property rights (IPRs) were discussed.

Mr Lavin suggested that Islamabad should arrange a meeting of all US companies working here at a proper forum in order to know their concerns regarding making investment in Pakistan and subsequently devise a mechanism to address their concerns, as it would go a long way in attracting foreign investment in Pakistan.

Similarly, he said Pakistan should identify and negotiate with major US companies that were not presently working in Pakistan and try to address their investment related concerns so that they might also invest in Pakistan. The commerce minister agreed to the proposal.

Mr Khan said Pakistan wished to have seamless connection with the US and the world economy for movement of goods, services and capital. He said it was important to conclude the BIT early, adding that Pakistan had shown considerable flexibility in accepting the USA draft text. “BIT’s successful conclusion rests on one or two outstanding issues, and the US will also show same flexibility so that a convergence of interests may occur,” he added.

The minister said Pakistan had a very keen desire to sign an FTA with the US. He said the FTA with the US would send a positive signal about Pakistan’s policy environment.

On the issue of IPRs, Mr Khan reiterated Pakistan’s commitment to improve IPR environment. He mentioned that last year Pakistan’s Federal Investigation Agency (FIA) was given additional legal cover for the enforcement of IPR laws and Pakistan was successful in almost eliminating optical media piracy — a fact that was recognised in the US by moving Pakistan from priority watch list country to watch list status.

The minister assured Mr Lavin that Pakistan would take all necessary steps to address the IPR issue in the pharmaceutical sector. The minister also expressed his desire for early implementation of reconstruction opportunity zones in the tribal areas of Pakistan.
 
TEHRAN – A Pakistani official said on Friday they would negotiate with relevant Iranian officials next month over establishing a sea route between Gwadar and the Iranian port of Chabahar.

“We will also talk about shipping ties and joint sea rescue operations in the area,” Hasan Zaidi, Joint Secretary for Pakistan’s Ports and Shipping Ministry, told the local Geo TV. “This is expected to reduce illegal trade through the borders of Iran and Pakistan,” he added, noting that both sides aim to boost legal trade. An informed Iranian official had earlier told IRNA that some 1-2 million liters of gasoline is smuggled to Pakistan every day. The smugglers receive banana, tangerine, and mango from Pakistanis instead, the official had claimed. The official value of trade between Iran and Pakistan now surpasses 400 million dollars.

Annual seafood production in Golestan to hit 71,000 tons

http://www.tehrantimes.com/Descript...06&Cat=9&Num=16
 
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