Pakistan Economy - News & Updates - Archive

[Neo]

Illegal biotech cotton cultivation​

THE government has embarked upon on an ambitious plan of “Cotton Vision 2015”. It has devised a three-pronged strategy with focus on biotech (Bt) cotton, developing the Cotton Leaf Curl Virus (CLCV) resistant varieties, and the development of hybrids. The aim is to have 25 per cent area under Bt cotton by 2009. On paper this is a foolproof strategy, but its enforcement will determine its success or failure.

On the other hand, influx of unapproved varieties of BT cotton continues in blatant violation of country’s laws. The government agencies responsible for checking this illegal practice, seem to be doing nothing despite the fact the Minister for Food, Agriculture and Livestock, Sikandar Bosan has said that these varieties are illegal and highly susceptible to cotton leaf Curl Virus.

People involved in this illegal business are making windfall profits without any remorse, and poor farmers are being swindled in the name of Bt. The farmers have no way to confirm whether the seeds they are getting have the Bt gene or are merely spurious.

In a recent national conference on cotton production, conducted at the Nuclear Institute of Agriculture and Biology (NIAB), Faisalabad, Dr Qadir Bux Baloch, Agriculture Development Commissioner, while highlighting the importance of GM cotton , advised farmers not to grow unapproved Bt cotton seeds. According to him, in random sampling of Bt cotton varieties available in the market out of 10 only one sample was found positive for Bt gene.

Last year, according to unofficial estimates, one to 1.5 million acres (15 per cent of total cotton area) were under un approved Bt cotton, whereas, during the current season 2007-08, the area can easily cross 30 per cent mark (2.7 million acres) of the total cotton growing area.

It is the responsibility of the government to check availability of unapproved Bt cotton in the market and educate farmers about the ill- effects of using spurious seeds. According to the Agriculture Minister Sikandar Bosan, the government had banned cultivation of unapproved Bt cotton varieties, but farmers cultivated them and got good yield. This has resulted in increase in the area under Bt cotton this year. If the government has reconciled with the position to control spurious seed plantings then the battle is half lost .

If uncontrolled use of technology is allowed to go on, there may be early build up of pest resistance. The lack of expertise with local seed companies, who claim to have developed these varieties, is bound to result in poor gene expression. Knowledgeable farmers are already expressing their apprehensions about the deteriorating lint quality from the unapproved varieties.

The country has done well in adopting the Bio-safety guidelines. It has taken another key step forward by formulating the Plant Breeders’ Rights Act and drafted amendments to the Seed Act 2007. Patents are already available for the technology. So there is an appropriate environment in place, also because of a. large number of dedicated and highly qualified biotechnologist, genetics, virologists and plant breeders at well-known institutes like the National Institute for Biotechnology and Genetic Engineering (NIBGE) and the Nuclear Institute of Agriculture and Biology (NIAB) in Faisalabad, and the National Centre of Excellence in Molecular Biology (NCEMB) at the Punjab University, Lahore, Centre of Agriculture, Biochemistry and Biotechnology (CABB), University of Agriculture, Faisalabad, and Central Cotton Research Institute (CCRI), Multan.

These institutes have the capacity of developing new crops and isolate and transform the desired genes. The government has promised large financial assistance to the institutes to help develop genetically modified (GM) local cotton varieties.

From merely 1.1 million bales of cotton produced when it came into existence, the country today is producing over 12 million bales per year. However, under the prevailing conditions the present yield per acre is very low – needless to say the country needs new and improved varieties or possibly hybrids that are high yielding and resistant or at least tolerant to diseases like CLCV and Mealy bug. In addition, there is need to move quickly to adopt new cotton technologies, such as, Bt cotton to face the severe infestation and losses incurred by insect pests.

There is a significant growth in the textile industry of the country. Prior to 2003 the demand of the industry was met by local production. However, now only 70 per cent is provided by local farmers and the rest 30 per cent is imported to meet its requirement. This is creating a great deal of concern among the industry, which is pursuing the government to ensure uninterrupted supply of raw cotton.

The country has undoubtedly lagged behind in the adoption of this important technology since the ministry of environment forbade to commercialise and cultivate Bt cotton variety developed by the National Institute for Biotechnology and Genetic Engineering (Nibge) after a controversy over the Bt gene ownership. The frustration is evident from the fact that we have failed to produce even a single variety of Bt cotton when compared to India where there are currently 111 (39 approved just this season) varieties available to farmers.

The area under cultivation of Bt Cotton variety in India has almost tripled to 8.6 million acres this year from 3.1 million acres in 2005. Four double Bt genes (cry1Ac & cry2Ab) cotton varieties have received approval for commercialisation from the Indian authority while about 121 Bt cotton hybrids are under various stages of field trials. India had a bumper yield of 26 million bales this year, and had produced a record 24.2 million bales of cotton last year. Experts believe the high yield was because of adoption of transgenic cotton seeds and timely rainfall.

In India more than one million small and medium farmers enjoyed the benefits of Bt cotton technology with increased yields, reduced pesticide applications and other health and environmental benefits. Pakistan can adopt similar strategy to catch up the fast pace of development in this field.

The atmosphere in the country has never been conducive to research and development (R&D), and no opportunity has been provided to private sector to work in the field of agricultural research together with the public sector.

Research to produce genetically modified crops is a painstaking job. Millions of dollars and years of concerted efforts are needed to develop these technologies. By allowing the unapproved varieties to thrive in the market, is almost like discouraging the institutions busy in research and development studies to evolve the required high-yielding varieties of the crop.

All that is needed here is to put the house in order. There is no denying the fact that Pakistan is in need of Bt cotton, and that to urgently. But the most important part of this equation is that it needs to employ legal and ethical means for acquiring this technology.

Enormous benefits of this technology can be reaped, provided correct, legal and ethical steps, with strict compliance to the regulatory systems of the country, are taken. For that there is need for immediate and effective measures to curb the thriving illegal business and uncontrolled use of technology, and create an appropriate environment for public and private sectors to ensure incentives for R&D and commercial release of these varieties.

http://www.dawn.com/2007/08/06/ebr6.htm

 

[Neo]

Diversified imports and industrialisation​

WITH the changing pattern of the economy and its impact on various sectors, the import pattern has greatly changed and become rather unpredictable because of global factors as well.

But what is striking about the hefty import bill of $30.5 billion in the fiscal 2006-07, is not only its bulk and the staggering large deficit, but the diversity of its contents.

If petroleum adds to the import bill of $7.33 billion, the telecom sector also contributes to a large part of the imports. On the other side, the computer sector is making headway and Prime Minister Shaukat Aziz wants its sponsors to set up the venture capital to develop the industry. Pakistan’s import of machinery in the last fiscal year touched $6.6 billion -- about one-fifth of the total imports.

Pakistan is still in the primary stage of industrialisation as it is manufacturing mainly consumer goods not machines. Even in the automobile sector, Pakistan is still just an assembler.

Attempts to manufacture machines through the Machine Tool Factory, the Heavy Mechanical Complex and the Heavy Electrical Complex were not a success and had to be abandoned for want of adequate investment as well as advanced technology. Even with 300 textile mills, most of the textile machinery is imported. Hence we are relying on imported machinery which in the last fiscal cost $6.6 billion and $6 billion the year preceding that.

In a year in which Pakistan’s manufacturing sector faired poorly in exports, except the textile sector, the import of machinery has been very heavy and is marked for its diversity of their contents.

Even in the area of textiles, in which we exported goods worth $10 billion last year, we have not done too well compared to Bangladesh which exported textiles worth $9.2 billion out of its total exports of $12.12 billion last year despite political turmoil and violence there and the fact that Bangladesh does not produce any cotton; its jeans, shirts and other garments, which are well tailored, did the trick.

Industrial sector in Pakistan, particularly leather, which once was a major sector, has fared poorly in export performance. Its leaders complain of lack of incentives and support. Additional investment in this industry has also been poor compared to the challenges it faces and the opportunities for larger sale abroad.

Now frequent power failures and breakdowns in supply have necessitated the import of power production machinery for $706 million mostly by the private sector. The machinery is needed to set up new power plants which are to be given higher rates to encourage more private sector investment. As a result more and more private sector power plants are coming up with early maturity dates.

Added to that is the import of electrical equipment for $642 million which is a distinct increase over the previous imports.

The textile sector has imported machinery for $503 million which is lower than the previous year’s imports. Some of the machines are expected to produce sophisticated products with higher value added goods.

The I.T and office equipment sector imported equipment for $306 million. Far more will have to be invested and imported if the industry is to achieve the $10 billion target by 2010 -- three years from now.

But more has been said about large investment in the I.T sector than what has been achieved in reality. The prime minister should follow up his call for venture capital in this area with practical measures which are productive and bring about concrete results. The IT software exports fetch merely $100 million.

The Telecom sector has consumed $2,158 million of imports of which the mobile telephone equipment claimed $831.6 million.

With more and more luxury buildings coming up in the form of office towers and super plazas, more advanced construction equipment has to be imported. So $222 million were used for the import of such advanced equipment.

With food grain prices going up along with the prices of vegetables, more farming equipment is being imported. Such imports in the last fiscal year caused $220 million.

The Punjab cost of production committee has suggested Rs518 for 40 kilograms of wheat after the next crop. Higher support prices and heavier procurement prices will increase the profit from farming and make the affluent farmers import more agricultural machinery.

Earlier there was a move to sell off the Heavy Mechanical Complex and the Heavy Electrical Complex and the Machine Tool Factory along with the Steel Mills, but that has been suspended for the time being so that the government could look for better options. We have to make proper use of the equipment on which a great deal has been invested. We have to move from simple manufacturing to machine making where our skills will be used.

And in the area of textiles we have to focus on the value-added instead of importing cotton from India or the central Asia to make low count yarn or cheap cloth which others convert and sell at far higher prices. We have to try to sell our skills instead of largely our sweat.

Of course, the textile industry has to be encouraged to diversify so that it can provide labour to the millions of workers in the country and millions more to come year after year.

What is imperative is that we move from the primary industrial stage to making machinery and certainly the textile machinery which as hundreds of mills need and we import now at a very heavy cost.

http://www.dawn.com/2007/08/06/ebr15.htm

 

[Bushroda]

Pakistani buffaloes are ‘black gold’​

LAHORE: “Pakistani buffaloes are black gold and a great asset to the country,” Governor Khalid Maqbool said while speaking at the opening ceremony of the Dairy Training and Development Centre at the University of Veterinary and Animal Sciences (UVAS), according to a press release on Saturday.


http://www.dailytimes.com.pk/default.asp?page=2007\08\05\story_5-8-2007_pg7_24

lol!!!!!! Seems like we Indians arn't the only one with a unique Laloo Yadav & his love for his buffalos.

 

[niaz]

lol!!!!!! Seems like we Indians arn't the only one with a unique Laloo Yadav & his love for his buffalos.

Jokes aside, there is some merit in this. Buffalo or water buffalo ( as distinct from Bison of American Buffalo) is native to Pakistan and India. Buffalo has been providing milk, meat and labour to the South Asian population since the dawn of history. People keeping buffalo herds were known as Gujjars ( we dont have too many cows in Punjab). Just looking at the names of towns such as Gujrat, Gujjar Khan, Gujranwalla, Gojra etc provides a good indication of buffalo's importance to the natives.

I am no Lalu Parshad, but I am also from a village ( known as 'Paindoo' by the unrbanites of Lahore, a derogatory term, but nevertheless factual). I grew up drinkng buffalo milk, eating ghee, dahi (youghurt) and lassi all made from baffalo milk. We had a couple of buffalos of our own. Thus I dont mind being called a lover of buffalos lol.

 

[Neo]

US bill shocks businessmen​

KARACHI, Aug 6: The business community in Pakistan believes that foreign investment will receive a jolt, if the United States links its aid with Pakistan’s performance against terrorism.

It may lead to a steep decline in the foreign exchange inflows the business community said while expressing shock over the signing of a legislation by President Bush on Friday last. The bill requires the president to certify Pakistan’s satisfactory performance against Al Qaeda and Taliban before the US provides aid to the country.

“Foreign investors, especially European and American investors, take a lead from Washington’s viewpoint, and how it sees Pakistan and what plans they have for the country,” said Abdullah Zaki, acting president of Karachi Chamber of Commerce and Industry.

The decision has shocked us and would certainly shake the confidence of foreign investors, besides distorting country’s image abroad, he said. Pakistan received record over $8.4 billion foreign investment for the fiscal 2006-07.

A few businessmen in Karachi said most of the foreign investment was coming from the Gulf countries and there would be no response to recent US move which creates a negative image about the country.

However, analysts said American decision would not hit the flow of foreign investment as Pakistan has grabbed a significant role in global economy.

“American corporate sector is more interested in Pakistan than the Washington’s view about the country,” said Muzzamil Aslam, an economist at the KASB Securities who also looks after Merrill Lynch in Pakistan.

Americans are in election fever and they are not taking Pakistan issue seriously, said Aslam who recently returned from United States after a successful road show for his products.

Analysts said American investment could hurt not more than 25 per cent of the total foreign investment. The joint investment of European and American companies was about 30 per cent of the total inflows recorded last year. Foreign investment in Pakistan grew by 87.6 per cent in the fiscal year 2006-07 to a record $8.42 billion.

They said even if US stops aid to Pakistan, the reserves of the country have reached close to $15 billion which is enough to absorb annual gap of $950 million US aid.

Aslam said a Global Depository Receipts (GDR) of UBL was recently launched for $650 million but investors offered $2.5 billion showing keen interest of foreign investors in Pakistan.

“It is difficult to say because they (Americans) have not quantified the performance target of Pakistan,” said Mohammad Suhail, Director Equity and Brokerage at JS Research.

“With $15 billion in reserves, no major impact is likely,” he said.

However, business community feels that bad days may cripple trade with foreign countries, especially US and Euro zone.

The US bill requires screening of all cargo on passenger planes within three years and sets a five-year goal of scanning all container ships for nuclear devices before they leave foreign ports.

“We can assume with our past experiences that the scanning of container ships will badly hit our exports to other countries,” said a textile exporter.

He said the best way is to put harsh restrictions on imports from the US and European countries and trade should be strengthened with China and other regional countries.

http://www.dawn.com/2007/08/07/ebr3.htm

 

[Neo]

PM okays draft textile policy ​

Proposed policy targets 40pc increase in textile exports

By Aftab Maken

ISLAMABAD: Approving the new draft of the textile policy, Prime Minister Shaukat Aziz has said the proposed textile policy will help increase the export of textile products, improve competitiveness and generate employment in the industry.

He was presiding over a meeting, which approved, in principle, the draft textile policy here at the Prime Ministerís House on Monday, says an official release. The prime minister said textile is the backbone of our industrial sector and the government will continue to support the private sector in its efforts to modernise itself, increase the productivity and competitiveness of textile products. We need to produce value-added products, particularly garments, so as to create jobs and higher exports, he added.

The prime minister said the proposed policy envisaged to build a new culture which would expedite the process of improvement in all the segments of textile sector. He, however, emphasised that the skills gap in all the entities of the textile sector as well as the relevant government organisations had to be filled by professionals to cope with the challenges and the changing environments of international marketing.

Aziz said textile was contributing 66% to the countryís export, 40% to employment and 8.5% of GDP and in this regard the government would take all possible steps required to help the industry to boost its global trade and the proposed textile policy would be a milestone to achieve even higher objectives.

Earlier, the secretary textile industry made a detailed presentation outlining the main features of the proposed textile policy. He apprised the meeting of the findings after interaction with all the stakeholders.

He mentioned that the proposed policy would cater for short, medium and long term measures to increase production of cotton, improve value-added products, productivity and competitiveness of the textile sector. He said the proposed textile policy targeted a 40% increase in the export of textile products and job creation for over 3.5 million people.

He further mentioned that in the new textile policy there was a detailed plan which would help create five model garment factories, introduction of a new scheme whereby a textile park would be declared special economic zones, setting up of a weaving city, formation of Pakistan textile research and compliance organisation, audit of processing industry for efficient and economic use of precious chemicals, setting up of a state-of the art textile laboratory at NTU Faislabad, horizontal and vertical integration to balance textile value chain, a specialised garment training institute for females, one-window facility for provision of required infrastructure and standardisation of machinery and equipment.

Later, State Bank of Pakistan Governor Dr Shamshad Akhtar briefed the meeting on various categories of financing facilities to promote industrial development in the country, including external commercial borrowings and local long-term financing for plants and machinery.

The meeting was attended by Minister for Textile Industry Mushtaq Ali Cheema, Federal Minister for Food and Agriculture Sikandar Hayat Bosan, Federal Minister for Science and Technology Noraiz Shakoor Khan, Adviser to the Prime Minister on Finance Dr Salman Shah, Deputy Chairman of the Planning Commission Dr Akram Sheikh, CEO of the Trade Development Authority of Pakistan Tariq Ikram and other senior Officials.

http://www.thenews.com.pk/daily_detail.asp?id=67240

 

[Neo]

Textile policy aims 40pc increase in exports​

ISLAMABAD, Aug 6: Prime Minister Shaukat Aziz has approved in principal the much-awaited draft textile policy seeking increase in export of textile products, improve competitiveness and generate more employment.

The policy aims to boost export of textile products to $17 billion from current $10.757 billion in the next five years. It targets 40 per cent increase in the export of textile products and generate over 3.5 million jobs.

The draft policy was approved at a high-level meeting on Monday, headed by prime minister and attended by ministers for textile, food, science, advisor to prime minister on finance, deputy chairman of planning commission and governor State Bank of Pakistan.

Under the new policy, there is a plan to help create five model garment factories, introduction of a new scheme whereby a textile park would be declared special economic zone, setting up of a weaving city and formation of a textile research and compliance organisation.

It also includes audit of processing industry for efficient and economic use of precious chemicals, setting up of state-of-the-art textile laboratory at NTU Faisalabad, horizontal and vertical integration to balance textile value chain, specialized garment training institute for women, one-window facility for provision of required infrastructure and standardisation of machinery and equipment.

A source privy to the meeting told Dawn on Monday that the draft policy was seeking another package of subsidies for the sector, which was not approved by the prime minister.

The Economic Coordination Committee (ECC) had already asked all ministries to avoid submission of summaries seeking subsidies in the shape of research and development (R&D).

“Discuss the issue of subsidies with the relevant ministries before the submission of another report on the textile policy to the cabinet,” the prime minister advised the textile industry.

An official announcement issued after the meeting said the meeting was informed that the proposed policy would cater to short, medium and long-term measures to increase production of cotton, improve value-added products, productivity and competitiveness of the textile sector.

The prime minister said that textile was the backbone of our industrial sector and the government would continue to support private sector in its efforts to modernise itself, increase productivity and competitiveness of textile products.

“We need to produce value-added products, particularly garments so as to create jobs and higher exports,” prime minister said.

He said the proposed policy envisages to build a new culture which would expedite the process of improvement in all the segments of textile sector.

He, however, emphasised that skills gap in all the entities of the textile sector, as well as the concerned government organizations, have to be filled by professionals to cope with the challenges and the changing environments of international marketing.

Later, the SBP governor briefed the meeting on various categories of financing facilities to promote industrial development in the country, including external commercial borrowings and local long-term financing for plants and machinery.

http://www.dawn.com/2007/08/07/ebr6.htm

 

[Neo]

Capital market reforms to continue: SECP ​

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) will continue its reforms process to improve the existing risk mitigation standards, introduce specialised market monitoring techniques and ensure transparency and fair trade practices in the market.

SECP Chairman, Razi-ur-Rahman Khan stated this while inaugurating a seminar on “Role of Derivatives in the Growth of Emerging Capital Markets” organised by the commission in collaboration with the London Metropolitan University, in Karachi, says a press statement issued on Monday.

He explained the SECPís policy of taking initiatives to learn from the international experiences and to introduce internationally acclaimed products and standards in the local capital markets. He viewed that better and efficient products will attract more market participation.

During the seminar, a presentation was given by Clive Farr and, a senior lecturer at the London Metropolitan University with an extensive experience in investment banking in the UK, Europe and the Middle East. He introduced the various derivatives product’s presently traded in international markets through exchanges as well as on Otis.

He explained how such products brought diversification and investment options in international markets for various types of investors. He advised participant institutions to make small investments in such products in the international markets, to develop better understanding of the benefits.

The Chairman, Karachi Stock Exchange Shaukat Tarin, in his concluding remarks highlighted the significant growth in the Pakistani capital markets in the last two years, where foreign direct investment has grown tremendously. He observed that in international markets derivates have emerged as pillars of financial system and the same are now inevitable for emerging markets, including Pakistan. He apprised the participants on the progress of institutional capacity building of KSE and NCEL with special emphasis on marketing these investment avenues across the nation to increase the investor’s base. Tarin appreciated the recent reforms, including improvements in the governance standards, deregulation and liberalisation of investments policies and fast-track privatization.

http://www.thenews.com.pk/daily_detail.asp?id=67244

 

[Neo]

MoU with USAID to improve investment​

ISLAMABAD, Aug 6: The United States Agency for International Development (USAID) has agreed to help achieve a structured economic reform process aimed at improving investment climate in Pakistan and enhancing competitiveness of the economy.

The Board of Investment (BoI) and the Competitiveness Support Fund (CSF) of USAID will sign a memorandum of understanding here on Aug 16 to help improve investment climate and enhance competitiveness of the economy.

The MoU will be signed by Federal Minister for Privatisation and Investment Zahid Hamid and Minister of State for Finance Omar Ayub Khan and chairman of the Competitiveness Support Fund (CFS). The MoU will be witnessed by a high-level US government representative.

President Gen Pervez Musharraf said in Karachi on Sunday that the country had started facing economic problems and that foreign investment was decreasing. According to some analysts, the signing of the MoU with the CSF could be a new move for considerably enhancing foreign investment in Pakistan.

The Competitiveness Support Fund (CSF) is a joint initiative of the Ministry of Finance, Government of Pakistan and the USAID which started with operations in May last year.

The financial support of USAID to the CSF is a part of $1.5 billion of US government assistance to Pakistan over five years in the five major areas of education, health, economic growth, democracy and governance, etc.

The MoU between the BOI and CSF is expected to pave way for both the organisations to undertake joint initiatives to support the creation of a foreign investors council (FIC), unifying policies towards effective establishment of special economic zones by benchmarking Pakistan with India, China, Thailand, Malaysia and Vietnam, working together to promote investment in infrastructure of the horticulture sector in Pakistan.

The MoU also envisages cooperation between the two parties to jointly prepare an investment guide demonstrating the potential and investment opportunities as well as organise a conference on “cross-border co-operation through trade and investment” in the Federally Administered Tribal Area (Fata).

Furthermore, following the MOU, the CSF will undertake a benchmarking exercise on BOI for its effective operations in Pakistan.

The Competitiveness Support Fund (CSF) established to support Pakistan's goal to have a competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country.

It 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.The CSF has undertaken policy analyses and studies on a number of sectors to identify the potential and competitive advantage to grow.

http://www.dawn.com/2007/08/07/ebr11.htm

 

[Neo]

BD invites Pakistani traders​

ISLAMABAD, Aug 6: Bangladesh has formally invited Pakistani businessmen to invest in various sectors, particularly in the textile sector. “Bangladeshi industries are not facing problems, like energy shortage, electricity tariff and labour cost. These are cheaper in Bangladesh than Pakistan,” said Acting High Commissioner of Bangladesh to Pakistan Allama Siddiki while speaking to traders at the Islamabad Chamber of Commerce and Industry (ICCI) here on Monday.

He stressed that Pakistani businessman should invest in Bangladesh in information technology and informed that seven Pakistani companies have already invested in export processing zones (EPZs).

“Bangladesh is not a cotton growing country, but a lot of looms are working in Bangladesh,” he added.

He said Bangladesh offers a lot of incentives to foreign investors and there was no quota system.

He further stated that business visa could be issued on the recommendations of chambers on a priority basis.

The envoy suggested creation of a linkage between Bangladesh Chambers and ICCI for exchange of trade-related information for stronger business ties.

He invited the ICCI delegation to visit Bangladesh in November.

The current trade volume is insufficient, which needs to be enhanced, he said, and informed that there were ample opportunities of investment in information technology, textile, pharmaceuticals, agriculture and other sectors.

The envoy informed that Bangladesh has still not signed free trade agreement with any country. He said that historical bounds need much better business relations and this was the ideal time for Pakistani businessmen to visit Bangladesh.

The Acting ICCI President Jamal Abdul Nasir agreed that bilateral trade between the two countries can be improved through exchange of delegations.

He said that the chamber would take a delegation to Bangladesh in November.

http://www.dawn.com/2007/08/07/ebr12.htm

 

[Neo]

US-Pakistan investment conference: Opportunity to attract US assets in energy sector​

ISLAMABAD: US-Pakistan investment conference in the United States is scheduled to be held in October-November 2007 to provide an opportunity to attract US investment in Pakistan’s energy sector.

This was informed by the US Ambassador Anne W Patterson who paid a courtesy call on the Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon here Monday and discussed with him matters pertaining to promoting energy cooperation between the two countries.

Welcoming the new US envoy, the minister said both countries enjoy very cordial and friendly relations. He informed that both countries have set up an energy dialogue pursuant to the visit of President Bush to Pakistan last year. He said that the government was taking concrete steps to exploit the untapped hydrocarbon resources in onshore and offshore areas to meet the growing energy needs of the country.

The minister said that the government has introduced a new petroleum policy that envisages an attractive package of incentives to the investors in the oil and gas exploration and production. He invited the US petroleum companies to take advantage of these investment potentials for the mutual benefit.

The minister highlighted the potential of unconventional hydrocarbon resources in Pakistan like oil shale and gas hydrates which needed transfer of US technology for their exploitation in the medium to long-term so as to meet future needs of Pakistan while reducing dependence on imports.

Mr Jadoon informed the envoy about the steps being taken by the government for the utilisation of 185 billion tonnes coal deposits of the country and sought US cooperation for conducting bankable feasibility of the attracting US private investment so that huge coal deposits could be utilised for gasification and power generation. He also invited the US companies to invest in the development of LNG and CNG sectors of Pakistan.

During the meeting, the US Ambassador told the minister that it is being planned to host US-Pakistan investment conference in the US during October-November this year, which would provide an opportunity to attract US investment in Pakistan’s energy sector.

The meeting was attended by Farrakh Qayyum, Secretary Petroleum and Natural Resources, Hilal A Raza, Director General Hydrocarbon Development Institute of Pakistan and Jahangir Khan, Senior Joint Secretary, Ministry of Petroleum and Natural Resources, Amy Holman, Consoler for Economic and Commercial and Affairs US Embassy.

http://www.dailytimes.com.pk/default.asp?page=2007\08\07\story_7-8-2007_pg5_10

 

[Neo]

Musharraf for speeding up industrialisation ​

KARACHI: President General Pervez Musharraf has emphasised the need for acceleration of industrialisation process as it contributes to poverty alleviation and reduction in unemployment.

He expressed these views during a briefing by Federal Minister for Industries and Production, Jehangir Khan Tarin, on Sindh Initiatives held at the Sindh Chief Minister House on Monday. Sindh Governor, Dr Ishrat-ul- Ebad Khan and Chief Minister, Dr Arbab Ghulam Rahim, were also present on the occasion. The President called for rapid industrialisation to create more jobs and urged facilitation in setting up of industries. He pointed out that for industrialisation the acquisition of land remained a problem which should be resolved in an effective manner.

Musharraf said establishment of industries in Pakistan is being focused upon with the basic aim of poverty alleviation. He informed that this is the sector which creates most of employment opportunities.

The President emphasised that in the process of industrialisation, the private sector should be involved for provision of required infrastructure. He said that local as well as foreign investors should be encouraged.

Gen. Musharraf highlighted the significance of the industrial areas such as Karachi, Lahore and Faisalabad with which prosperity is linked. He also referred to his meeting with the then Premier of Malaysia, Dr Mahathir Muhammad, who had informed him that in Malaysia free land is given to those who want to establish industries.

The President pointed out that in the country there is a gap between policy formulation and implementation and said that what is planned should also be implemented and that there should be an effective monitoring system too.

He said the basic purpose for devising local government system was to help bridge the gap between policy formulation and implementation. Gen. Musharraf said he is encouraged by development work being undertaken and added that we have to work harder.

He also spoke of the federal government’s plan of setting up urban clinics which would be set up on union council level. The President said doctors would be deployed at these clinics and basic medicines would be available stating that this would be real service to the poor. He stated that fishermen be provided with money for modification of their fishing boats and for having proper preservation facilities so that their fish catch would not go to waste.

Gen. Musharraf said the people in rural areas be provided with necessary information to help improve the yield of their crops. He stated that there is a need to convince people to improve the quality of their livestock.

Briefing the President, Federal Minister for Industries and Production, Jehangir Khan Tarin, spoke of the Karachi Tools, Dies and Mould (TDM) Centre, project at Korangi Creek Industrial Park (KCIP), Bin Qasim Industrial Park (BQIP), Marble City on Northern Bypass and Rehabilitation of five industrial estates. He pointed out that the objective of TDM Centre was to provide local TDM industry with the state-of-the-art design, development, training and consultancy services as well as to enhance the TDM skill pool and develop digital manufacturing environment besides upgrading local engineering industry to wards world design and manufacturing standards.

The Minister said that PIDC has come up with a funding of Rs515 million and that the project is ready for inauguration. The second TDM Centre would be established at Gujaranwala at a cost of Rs980 million.

http://www.thenews.com.pk/daily_detail.asp?id=67247

 

[Neo]

Pre-paid electric meters soon in AJK ​

MIRPUR (AJK): The AJK government has decided to introduce the pre-paid electricity meter system in Azad Jammu Kashmir to ensure correct billing for consumers, official sources said.

The sources told this scribe here Monday that the plan for installing pre-paid meters also involved the introduction of meter reading card. The government is taking these steps in the light of frequent complaints of wrong billing. Moreover the AJK government is also contemplating to computerize power billing. Currently, bills for all sorts of consumers are compiled manually by the revenue wing of the state electricity department.

Complaints of incorrect electricity bills by AJK electricity department against the actually consumed power has become a routine. The sources said that the government has also decided to keep the posting of a line man or a meter reader in an area only for three-month period. “No any line man or meter reader could consume more than the stipulated three-month period in any area and their transfers would be made in rotation under the proposed new policy”, the sources said.

The government has also, meanwhile, directed the state electricity department to gradually change the old meters and power supply lines past their age. Chief Engineer of the AJK Electricity Department has also been directed to advertise the actual cost structure of electricity meter and the drop wire in the media for the information of the existing as well as upcoming consumers seeking new connections so that no official of the department could charge extra for electricity connection.

http://www.thenews.com.pk/daily_detail.asp?id=67252

 

[Neo]

Banks to give Rs 40.2 billion loans to exporters: EFS ratio fixed at 70:30 ​

KARACHI (August 07 2007): Banks will provide Rs 40.2 billion loans from their own resources to exporters under the export finance scheme (EFS) during the 2008 fiscal year, as the central bank has redefined composition of EFS by setting the 70:30 ratio. The central bank has decided to extricate itself gradually from export refinance scheme and transfer it to the banks.

The State Bank of Pakistan (SBP) has, therefore, introduced some modifications, which have recently been announced in the monetary policy by amending the EFS rules and regulations.

In the monetary policy, the central bank has announced some changes in refinancing limit and resource sharing arrangements for the EFS to reduce its consequences for reserve money growth and promote efficient utilisation.

The central bank said that during the current fiscal year, it would provide 70 percent funds for the EFS against the total limit fixed for the banks, while the remaining 30 percent funds for EFS would be provided by banks from their own resources to fulfil the exporters' requirements.

The banks have been advised by the central bank to ensure their total outstanding under the EFS, funded by the central bank as of June 30, should be reduced constantly by 30 percent latest by June 30, 2008. Therefore, the banks are bound to pay Rs 40.2 billion to the central bank till June 30, 2008, as overall outstanding amount under the EFS stood at Rs 134 billion on June 30 2007.

To make this reduction gradual, the aggregate outstanding refinance of Rs 134 billion must be reduced by at least 15 percent or Rs 20.1 billion, latest by the end January 2008.

In addition, for gradual reduction, the banks will pay Rs 20.1 billion, out of 40.2 billion, to the central bank till January 30, 2007 as the SBP has given directives that the banks should reduce 15 percent EFS outstanding by the end of January, 2008.

After the payment of Rs 40.2 billion, a 30 percent of overall EFS outstanding of Rs 134 billion as on June 30, 2007, the banks will arrange this amount from their own resources. "The payment of Rs 40.2 billion by banks during the current year to the central bank cloud not hit their deposits or liquidity," said economist Muzammil Aslam.

He said that during the last fiscal, the banks deposit was raised by 19 percent to Rs 3,300 billion and during the current fiscal year, a further 15 percent growth was expected. Therefore, an investment of Rs 40.2 billion under the EFS by the banks was not a huge amount against the growth of 15 percent, which counted around Rs 500 billion to Rs 3,800 at the end of June 2008, he added.

http://www.brecorder.com/index.php?id=602442&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Advancing Pak-US trade ties with Bush officials discussed ​

WASHINGTON (August 07 2007): Commerce Minister Humayun Akhtar Khan discussed advancing Pakistan-US trade and economic relations with senior Bush Administration officials on Monday.

Khan met with US Trade Representative Susan Schwab and US Deputy Secretary of State John Negroponte as the two countries discussed forging closer trade and economic links to further consolidate their wide-ranging relationship.

In his meeting with Susan Schwab, the Commerce Minister discussed ways move forward in areas of bilateral investment treaty negotiations, reconstruction opportunity zones, intellectual property and World Trade Organisation matters.

"We worked on the strategy how to move forward in these areas," he told APP at the start of his two-day visit to Washington.

With Negronponte, he deliberated on the importance of an economic linkage with the United States with respect to better market access for Pakistani products in the robust American market.

"I emphasised on the need that it is trade that Pakistan needs to move out of poverty much more than economic aid and that has been the cornerstone of President Musharraf and Prime Minister Aziz's policy internationally."

Khan stated the senior State Department official understood the point well and added the two countries are working closely on the upcoming reconstruction opportunity zones legislation, which is expected to be presented in the American Congress next month.He expressed the hope that with the implementation of ROZs initiative, the trade will expand further between the two countries.

The United States is one of the largest trading partners of Pakistan and the two-way trade volume has increased in recent years to about six billion dollars with the South Asian country's exports totalling around $3.9 billion last year.

http://www.brecorder.com/index.php?id=602505&currPageNo=1&query=&search=&term=&supDate=