Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan climbs ladder of economic freedom: report​

ISLAMABAD, Sept 7: Pakistan still remains behind India in South Asia in terms of economic freedom, according to a report released on Friday on ‘economic freedom of the world’ for the year 2007.

Though Pakistan performed better than India as Islamabad score leapt to six points, out of 10 this year as against 5.7 points last year whereas India’s score slightly improved to 6.6 points out of 10 as against 6.5.

The areas that improved Pakistan’s overall performance are: size of government; legal structure and security of property rights; and, freedom to trade internationally. However, Pakistan lost a lot in areas of access to sound money and regulation of credit, labour, and business.

The report, a copy of which was made available to Dawn, said Pakistan climbs the ladder of economic freedom scoring six points ranking 101 out of 141 countries; leaps big in legal structure and security of property rights area by improving from 2.5 to 4.4; loses big in access in sound money by sliding down from 6.4 to 6.0.

Hong Kong and Singapore rated best for economic freedom, Zimbabwe and Myanmar rank worst, according to the report released by Pakistan’s first free market think-tank, Alternate Solutions Institute.

The annual report uses 42 different measures to create an index ranking countries around the world based on policies that encourage economic freedom.

The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of private property.

Research shows that individuals living in countries with high levels of economic freedom enjoy higher levels of prosperity, greater individual freedoms, and longer life spans.

These measures are part of a fundamental base needed to build a free and prosperous nation.

A quick glance at the names of countries scoring lowest on the index shows that without protection of property rights and judicial independence, there was little individual freedom and little in the way of prosperity.

Pakistan scores in key components of economic freedom (from 1 to 10 where a higher value indicates a higher level of economic freedom): size of government changed to 7.3 scores from 7.2 in the last year’s report; legal structures and security of property rights changed to 4.4 from 2.5; access to sound money changed to 6.0 from 6.4; freedom to trade internationally changed to 5.8 from 5.7; regulation of credit, labour and business changed to 6.3 from 6.5.

In this year’s main index, Hong Kong retains the highest rating for economic freedom, 8.9 out of 10.

Pakistan climbs ladder of economic freedom: report -DAWN - Business; September 08, 2007

 

[Neo]

Provinces received Rs400bn last year​

ISLAMABAD, Sept 7: The centre transferred Rs400 billion to the provinces during the last financial year (2006-07) as share from the federal revenue under the National Finance Commission Award, which was 33 per cent higher than the fiscal year 2005-06.

The government had allocated a total of Rs381 billion in the revised estimates for the budget but the final share to the provinces increased to Rs400 billion as a result of higher revenue collection. As such, the provincial share in the federal divisible pool increased by about Rs19 billion or almost five per cent when compared with revised budget estimates.

The government has estimated the current year’s provincial share in the divisible pool at about Rs492 billion, which is likely to go up at the time of finalisation of federal accounts. The fiscal transfers to the provinces include grants and loans from the federal government.

According to the full provisional data of consolidated federal and provincial budgetary operations released by the ministry of finance, the province of Punjab received Rs191.50 billion during financial year 2006-07 compared with Rs148.55 billion of 2005-06, showing an increase of about 29 per cent. The province is estimated to get Rs236 billion this fiscal year.

The data suggests that the centre transferred about Rs131.30 billion during the financial year ending on June 30, 2007, which was 36 per cent higher than Rs96.30 billion of 2005-06. Sindh is expected to get Rs144 billion under net transfers of the federal divisible pool this year.

The NWFP province was paid about Rs46 billion last financial year, which was 29.6 per cent higher than Rs35.50 billion it got a year earlier. The province is anticipated to be paid Rs56 billion during the current financial year.

The data suggests that Balochistan province received Rs31 billion share of the federal divisible pool last year, which was 54 per cent higher than the Rs20.30 billion it got in 2005-06. As such, Balochistan emerged as the biggest beneficiary in terms of percentage increase in share, followed by Sindh, at 36 per cent.

The share of the NWFP and Punjab in percentage terms stood at 29.60 per cent and 29 per cent. Balochistan’s share, however, is expected to come down to Rs29.60 billion during the current financial year.

The provinces are entitled to get one-sixth of sales tax revenue, which is subsequently transferred by the provinces to district governments and cantonment boards in full.

Under this head, Punjab’s share is 50 per cent, followed by Sindh at 34.85 per cent, the NWFP at 9.93 per cent and Balochistan at 5.22 per cent.

The remainder of the divisible pool is distributed among provinces on the basis of their population. Under this head, Punjab gets the highest share at 57.36 per cent, followed by Sindh at 23.71 per cent, the NWFP at 13.82 per cent and Balochistan at 5.11 per cent.

Moreover, Punjab, Sindh, the NWFP and Balochistan are entitled to get 11 per cent, 21 per cent, 35 per cent and 33 per cent, respectively, out of the Rs31 billion in collections from the provinces.

Provinces received Rs400bn last year -DAWN - Top Stories; September 08, 2007

 

[Neo]

PIA bailout may require massive staff cuts​

KARACHI, Sept 7: Some 25 per cent of the staff of the national flag carrier may have to be axed to pull the airline out of its current financial crisis, the new head of the Pakistan International Airlines (PIA), Zaffar A. Khan, hinted during an interview with Dawn at the PIA headquarters.

The move is part of a rightsizing programme and the management’s long-term measures to reduce operational costs and improve performance. “We have to decide whether we want to run this airline on a commercial basis or as a social welfare service,” said Mr Khan.

In an effort to justify the imminent sacking of employees, he said: “We have 430 to 440 employees per aircraft as compared to other good airlines, which have 200 employees for one aircraft. “Currently, we have a workforce of over 18,000 and if we go by the international standard, almost one-fourth of the total employees, or around 5,000, should be counted under rightsizing. “Ultimately, we have to address this (rightsizing) issue some time next year in a sensible and humane way,” he explained.

Armed with the experience of several senior posts such as the chairman of the Pakistan Telecommunication Company Limited (PTCL), chairman of the Karachi Stock Exchange and president of Engro Chemicals, Mr Khan took control of the airline in April this year. With the airline beset with myriad problems, Mr Khan chose to speak on issues such as the overall financial condition, overstaffing, short- and long-term measures to turn the loss-making airline into a profitable entity, the European Union’s ban on 20 PIA planes, need for capital injection and a fleet modernisation plan.

‘Who would purchase PIA?’

While not ruling out the option of privatisation, he asked: “Who would purchase the airline with Rs32 billion of accumulated losses and over-employment?” he asked. “But at some point the government will have to address the issue of PIA’s privatisation, which is on the approved list of the Council of Common Interests (CCI).”

He admitted that the airline was in dire need of capital to facilitate infrastructural development and cut borrowing costs, yet had limited channels of generating funds.

“A rough estimate suggests that we have an immediate need of approximately half a billion dollars to bail the airline out,” said Mr Khan. “We have to improve our infrastructure, replace old aircraft with fuel-efficient ones, construct new hangars and fix electricity problems since our generators are too old. All these require capital and it is difficult to generate revenue.”

Mr Khan presented two options to generate capital: the controversial sale of the PIA-owned Roosevelt Hotel in New York’s upscale Manhattan, and Scribe Hotel in Paris.

“On the basis of its national strategic consideration, the government injects capital into the airline, which seems difficult. The second option is that PIA sell valuable properties in New York and Paris to ease the financial burden,” he pointed out.

He regretted that the latter option had become highly politicised, giving rise to the debate that the asset was up for sale at a throwaway price. “Consequently, it will not be sold but PIA is going bankrupt,” he remarked.

“The bottom line is clear. We need capital to keep our head above water. The sale of PIA’s property is the only way to generate the capital badly needed to run the airline,” he said, adding that he would never have agreed to the sale of Roosevelt Hotel if it were not going to give PIA good value.

Referring to various short-term measures introduced by the management for the July to December period, Mr Khan stated that PIA was currently incurring a loss of Rs1.2 billion per month and required urgent measures to manage its financial crunch.

EU ban

Regarding the highly-publicised European Union (EU) ban on 20 PIA aircraft, the airline chief said a partial lifting of the ban on 11 aeroplanes resulted from a Recovery Action Plan submitted to the EU. “However, they said the implementation of the plan would be a challenge for the airline,” he added, disclosing that the EU had imposed a condition on lifting the ban on 11 aircraft, which required all such aircraft to obtain clearance from Pakistan’s Civil Aviation Authority (CAA). “The CAA has already cleared one,” he said. “We are in no hurry and are working in sequence with the CAA.”

According to Mr Khan, an EU team may visit Pakistan in October to judge the situation on ground before reviewing the ban on the remaining nine aircraft.

While refusing to divulge the exact monetary loss resulting from the ban, Mr Khan only said that PIA had suffered immense brand damage. Maintaining that safety and reliability remained the airline’s priority, he said, “There were deficiencies in some areas, mainly issues of system and procedure.”

He added that the national carrier intended to replace its ageing fleet of Boeing 737-300 with seven new Airbus A320-200 aircraft.

PIA bailout may require massive staff cuts -DAWN - Top Stories; September 08, 2007

 

[Neo]

Coal reserves: US firm starts $5 billion methane gas project ​

KARACHI (September 08 2007): A US-Canadian company, 'Soneri', has started work on $5 billion project for discovery of coal-bed methane gas under the layers of coal reserves in Sindh, Business Recorder learnt here on Friday.

Sindh cabinet on December 24, 2006 gave approval, in principle, to an agreement for exploration of methane gas in coal reserves in the province, according to Sindh Mines & Mineral Development Department. An MoU in this regard was signed with Soneri on November 27, 2006 during the US visit of President Pervez Musharraf.

The company started survey of coal reserves for which special aircraft of Marine Corps of United States were used as traditional aircraft could not determine the availability of methane gas. The company would drill 400 to 600 holes at every coal reserve which would then be connected through modern system.

In the first phase, the company has planned to make investment of $5 billion. At present, there exists no law with regard to gas discovery. Therefore, Sindh government has made some rules. However, before their enforcement, the provincial cabinet would carry out scrutiny so that no legal hitch remains in the project.

In this regard a committee has been formed comprising Secretaries of Law, Mines and Mineral Development, Finance and Industries, which has been directed to carry out vetting of the rules and submit its report. According to an estimate, there are 25 trillion cubic feet methane gas reserves in the province.

This gas can be used as piped, and also be converted into petrol or diesel and used in the production of chemicals. Sources said that the company is responsible to bring in entire equipment for gas exploration, and Sindh government could levy excise and other taxes, which previously was the subject of federal government.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Work on poverty alleviation fund-III begins ​

LAHORE (September 08 2007): Pakistan Poverty Alleviation Fund (PPAF) has started work for the development of PPAF-III to build on the successes of the first two phases of the programme sponsored by the federal government and World Bank to bring reduce poverty in the country.

"PPAF-II has entered its last year. In third phase, we may explore the new options like credit guarantee company or equity fund," PPAF Chief Operating Officer Kamran Akbar said, while addressing a workshop jointly organised by PPAF and Small and Medium Development Authority (Smeda)'s project, Aik Hunar, Aik Nagar (AHAN) here on Friday.

AHAN Project Director Suhail Aamir and senior officials were also present on the occasion. Kamran Akbar hoped that PPAF-III would take some concrete shape by June 2008. He said that PPAF and AHAN had joined hands to expand the outreach of government's rural enterprise modernisation project to replicate the 'One Village One Product' concept in the country.

He said the partnership of AHAN with PPAF would enable the former to have exclusive access to the partner organisations (POs) of the latter to ensure easy access to services in the far-flung areas. PPAF, through its POs, would provide substantial support to AHAN in terms of identifying products, forming communities/clusters, providing microcredit, enterprise development facility (EDF), community physical infrastructure, health and education services as per community requirement, he added.

He said PPAF would help in identifying potential products in their respective location and would also assist in conducting baseline and impact studies on the projects initiated.

Since the year 2000, the fund had disbursed Rs 32 billion for various interventions through 70 partner organisations working in 27,500 villages and more than 66,000 communities in 111 districts across the country, he explained.

Speaking on the occasion, AHAN Project Director Suhail Aamir said the project's role would be to identify the areas of intervention in terms of product design, quality and marketing.

It would provide assistance in the identified area through designers/consultants and would build capacity of the craftsmen on product development, he added. Besides providing market linkages and sharing its finances with PPAF, AHAN would also provide marketing exposure through display outlets and exhibition at national and international level, Suhail Aamir said. AHAN's Manager Marketing and Networking Shehrayar Tahir highlighted the importance and potential of the project.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan fails to find a place among chemical-producing states ​

KARACHI (September 08 2007): Pakistan has failed to find a place among chemical-producing countries due to high cost of manufacturing and raw materials, low investment and lack of coordination between the academia and industries for research and development.

These views were expressed by various stakeholders at a meeting, organised by the Engineering Development Board (EDB) at PIDC House here on Friday. Chaired by General Manager (Policy), EDB, Zahid J. Yaqub, the meeting discussed ways and means to evolve an action plan-2020 for the development of local chemical industry.

The stakeholders observed that the country's tiny chemical-producing sector was insufficient to cater to the need of the local industries, which were compelled to depend on huge imports on high tariffs.

On the other hand, neighbouring India was producing 90 percent chemicals and thriving rapidly in this field with the least reliance on import, they said. To increase investment by making this sector profitable, they stressed upon the government to provide the local manufacturers with incentives, minimise tariffs on imports and simplify the process for acquisition of documents for import of chemicals and tax relief.

"Import of chemicals is a tedious process, as the bureaucratic inefficiency causes long delays, compelling the industrialists to ultimately to avoid investments in the chemical producing sector," they said. Import of chemicals was cheaper in rates as compared to its production, which cost huge capital and consumed time, they added.

Role of academia was also considered significant in giving boost to chemical sector, they said, adding its relationship with industries was very limited due to various reasons, particularly lack of trust on local experts. Some of them observed that though academia's role was, undoubtedly, important, but so far it had failed to assist the chemical industries and remained irresponsive.

About the chemical use in herbal medicines and their export, they said that the country, being an agrarian, the cultivation of herbs should be done on a large scale, and pointed out that the herbal medicine were being extracted from wild plants.

Giving China's example, they said that it had earned huge capital by exporting herbal medicines, manufactured on world standards, whereas Pakistan's local industry could not streamline its production, which needed to follow China's example at least in this case. Keeping in view the rising demand chemicals demand in the world, they stressed the need for boosing its production indigenously to cope with the challenges ahead.

The stakeholders were of the view that emerging challenges in post-World Trade Organisation (WTO) agreement, the country would face severe difficulties to sustain its chemical industry due to no-action plan. They also stressed the need for implementing the intellectual property rights (IPR) to protect the productions of the multinational companies from being copied by illegally established small industries.

According to officials statistics, the country's export of chemicals last year stood at 200 million dollars, which was only 1.3 percent of its total exports. They said during the last year the global markets witnessed chemical trading at 1.8 trillion dollars, mainly dominated by the US, Japan and Europe. Pakistan made its import by 3.6 billion dollars or by over 12 percent of its total imports, they said.

The meeting was addressed by Hassan Ahmed from Pakistan Petrochemical (Pvt) Limited, K. R. Siddiqui from Crescent Chemical, Pervez Tufail from Tufail Chamicals, Dr Ibrahim Mustafa from the Department of Chemical Engineering, NED University; Asif Saad, Idrees, Asif M. Khan and Saleem Khan.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Work on five hydropower stations to start by year-end ​

LAHORE (September 08 2007): Punjab Power Minister Chaudhry Armghan Subhani has said the construction work on five hydro power stations will start by the year-end. He made the comment when he chaired a department meeting here on Friday. Chaudhry Armghan Subhani said the project would cost Rs 4 billion in total, out of which 80 percent would be met by the financial assistance of Asian Development Bank (ADB) whereas the rest of 20 percent would be borne by the Punjab government.

"Electricity is the back bone of all developments and the government is committed to facilitate the masses in all respects in this regard," he added. While elaborating the head wise break up cost of these hydel power projects to be constructed at Marala, Chianwali, Deg Outfall, Okara and Pakpattan, the minister disclosed that Rs 110.2 million would be spent on preliminary work, Rs 1.07 billion for civil works, Rs 1.37 billion for hydro mechanical equipment, Rs 142.6 million for electrical equipment, Rs 12.6 million for transmission lines, Rs 81.1 million for physical contingencies, Rs 135.2 million of engineering supervision, Rs 40.5 million for administration, audit and accounts, Rs 40.7 million for duties and taxes, Rs 133.2 million for price contingencies, Rs 110 million for feasibility study of five additional sites, Rs 169.8 million for capacity building and Rs 586.4 million for interest during construction.

Power Chief Engineer Power Muhammad Yaqoob, Reconciliation Cell In-charge Iftikhar Ahmad Randhawa, Technical Director Rahat Khan and REDP Project Manager Liaqat Ali Iqbal also attended the meeting.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Country’s reserves touch $16.07bn​

By Mushfiq Ahmad

KARACHI: Pakistan’s foreign exchange reserves crossed the $16 billion mark for the first time during the last week, State Bank of Pakistan said on Thursday. Total liquid foreign reserves held by the country surged to $16.0789 billion on September 1, registering an increase of $260.7 million or 1.648 percent from $15.8182 billion on August 25. An increase of $290 million was seen in the reserves held by the central bank during this week while the reserves held by banks other than SBP registered a decline of $30 million.

Foreign reserves held by the State Bank of Pakistan rose to $13.804 billion from $13.514 billion on August 25. Net foreign reserves held by banks other than SBP declined to $2.2749 billion from $2.3041 billion on August 25. State Bank’s officials preferred not to disclose anything about the rise in foreign exchange. However, the bankers said the central bank was buying dollars from the market in order to arrest the declining trend of the greenback. The central bank has purchased above $300 million from the market during recent days, the official said. Besides, investment into the stocks market, which had seen outflows early this financial year, is now recovering and money is coming in, they said. A senior official at a foreign bank said there might have been an inflow from the parent organization of a foreign bank operating in the country for its recent acquisition of a local bank.

He further said some local companies had recently finalized foreign currency loan arrangements, which could have added to the foreign exchange reserves of the country. Also, he said, some foreign investors have acquired stakes in local companies in the financial sector. These investments may also have been the reason for build up in foreign exchange reserves, he added. Other sources said receipt of privatization proceeds of Pakistan Telecommunications Company Limited could also have been the reason for the surge in foreign exchange reserves.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan now has highest number of CNG-run vehicles​

KARACHI: Pakistan has become the country with the highest number of CNG-run vehicles in the world leaving Brazil and Argentine behind in the race as largest user of natural gas vehicles.

According to statistics compiled by CNG Owners Association of Pakistan, the number of CNG-run cars have exceeded to 1.6 million throughout the country. The number of CNG filling stations has also grown largely in the country. The number of operational CNG pumps has increased to 17, 000, while around 200 CNG pumps are being established and 4,000 investors have shown interest to set up fuel stations of this gas.

Brazil, the second largest user of natural gas, has 1.42 million CNG-run vehicles. The third largest user, Argentine, has 1.35 million consumers. Private owners run around 70 percent of CNG filling stations while 30 percent are run by Oil Marketing Companies (OMCs).

Malik Khuda Baksh, President CNG Owners Association said these figures will be informed to International CNG rating organisation (Natural Gas Vehicle International), which would rank Pakistan as number one country using CNG in vehicles after its own calculation. He said that country has shown an extra-ordinary growth of 5.5 million vehicles in the last seven months of the current year as the number of CNG-run vehicles stood at 10.5 million at the beginning of the year.

He claimed that gas fuel had saved about $2.2 million of country’s foreign exchange and this savings would be exceeded to $3 million at the end of current fiscal year. Gas fuel helps protect the environment from pollution as well.

“Now, there is a need to provide CNG to public buses or heavy vehicles and private sector is seeking government cooperation in this regard,” he added.

Mr Khuda Buksh said that the CNG station owners body has initiated to convert a diesel-run bus into CNG-run bus at the cost of almost 0.2 million. He urged government to form an exclusive loan facility to attract big investors in this sector and allow import of CNG-run vehicles and kits in the country, so that diesel consumption could decline and the country’s oil import bill could be minimised. Experts believed that gas reserves would not be sufficient to meet the country’s gas requirements. Pakistan’s gas demand and supply projections indicate a widening gap of approximately 500 MMCFD by the year 2010.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

EU seafood export ban to cost $47 million a year​

ISLAMABAD: Despite the hectic efforts to remove the bottlenecks and meet the requirements, the government is unable to restart exports of seafood to European Union (EU) and is suffering a loss of about $47 million a year.

Pakistan exported seafood worth $188 million during the financial year 2006-07, which was down by almost 4 percent against $196 million in the year 2005-06. According to an estimate, the EU is a big market for Pakistani seafood and seafood worth $45-50 million was exported from Pakistan, Daily Times learnt on Thursday.

The EU has banned seafood exports from Pakistan since April 2007. The action was taken after its inspectors, during their visit to the country in January this year, found the industry’s food processing to be below their standards. The ban has rendered jobless a large number of poor fisheries workers.

The provincial government of Sindh has so for spent Rs 50 million to meet the export standards set by the EU. The EU had also raised complaints against fishing vessels, auction halls and processing units, which still have not been addressed by the fishermen community.

An official of the ministry of food, agriculture and livestock (MINFAL) told this scribe that United Nations Industrial Development Organization (UNIDO) and EU had provided technical assistance to improve and meet the quality standards set by EU for exporting seafood to these countries. The EU experts had provided technical training to harbour and Marine Fisheries Department (MFD) officials.

The national assembly standing committee on food, agriculture and livestock in its meeting held on August 22 and Sept 3 this year also stressed on the stakeholders to upgrade their facilities and meet the EU requirements as early as possible.

The official said MINFAL had a role as regulator while the objections raised by the EU related to the provincial government of Sindh and private stakeholders. The processing units and harbours were the responsibility of Sindh government and boats were privately owned. In the light of standing committee meeting regarding EU ban on seafood exports from Pakistan and other steps taken by the federal and provincial governments to meet the EU standards, the officials expressed the hoped that the issue would be resolve soon.

He further said the MFD was the regulatory authority and the EU had expressed satisfaction with the laboratory and other things, but there were some issues in the supply and cold chains and hoped that it would be resolved soon.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan is the 7th largest borrower: WB​

ISLAMABAD: Pakistan is the bank’s seventh largest borrower with $985 million in loans and credits, said a report released by World Bank.

Globally, the World Bank Group committed USA $34.3 billion in fiscal year 2007, up $2.7 billion (7.8 percent) from fiscal year 2006. India was by far the largest borrower from IBRD and IDA, accounting for $3.75 billion, or 15 percent of total lending from these two institutions. The World Bank’s program in India focuses on providing basic services such as access to clean water and education, improving infrastructure for rural areas, and employment.

The increase also reflects $700 million in lending to the health sector to India which was carried over from the previous year, the report said. Looking ahead, World Bank would focus on cross-cutting reforms such as governance and fiscal management, and continue addressing deficiencies in the region’s investment climate, such as weak infrastructure, red tape, and corruption. It will also deepen its engagement in states where poverty is increasingly concentrated, such as Orissa and Bihar in India and Sindh in Pakistan, it added.

Daily Times - Leading News Resource of Pakistan

 

[Introvert]

Chinese company to invest in IT sector of Sindh
KARACHI: Sun Technology, a Chinese company, has expressed its interest in investing in IT sector of Sindh.

The delegation of the Chinese company told during a meeting with Nauman Saigal, adviser to chief minister Sindh for information technology, in Karachi that it is reviewing the investment opportunities in IT sector of Sindh, particularly Karachi.

On this occasion, Nauman Saigal explained to the delegation about the development made so far in the IT sector of the country.

He told the delegation that there is a huge scope of investment in the IT sector of Sindh and the Chinese company can utilize the talents of the skilled persons available here.
Chinese company to invest in IT sector of Sindh

 

[Neo]

FATA uplift projects: Dutch minister assures financing ​

PESHAWAR (September 09 2007): A three member Dutch delegation led by the Development Minister, Albert Gerad Koender met the Governor, NWFP Lieutenant General Ali Mohammad Jan Aurakzai (R) at the Frontier House Islamabad on Saturday. The discussion focused on co-operation between the two friendly countries, regarding regional peace and development.

The Governor briefed the delegation especially about the socio-economic conditions of the people of FATA and the development measures undertaken by the present government in far-flung areas.

Aurakzai said that for the first time, development projects are operative in otherwise totally neglected and underdeveloped areas like FATA added that education, health, agriculture and livestock projects need international co-operation particularly from Netherlands. The Dutch minister assured Aurakzai that the people and the government of Netherlands would continue their support in the ongoing projects undertaken to benefit the people of FATA.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Two new shipyards planned ​

Sunday, September 09, 2007

ISLAMABAD: Prime Minister Shaukat Aziz on Saturday said the government is committed to making Pakistan a leading shipbuilding country of the region.

The prime minister was chairing the first Policy Board meeting on development of the shipbuilding industry in Pakistan at the PM House. The board approved a work plan for the establishment of two large shipyards on joint venture basis with leading foreign shipyards of the world.

He said the government is concentrating on the development of shipbuilding industry in the country and establishment of two new shipyards with bigger docks which would ensure accommodation of much larger vessels.

He said this would also usher in a new era of economic activities, creating new jobs and improving living standards of the people.

The Prime Minister said shipbuilding industry can become a great asset due to its potential and would contribute to the uplift of national the economy. He said that the commercially strategic location of Pakistan is a take-off point for such projects.

The next 50 years, he added, will see a growing demand for new ships around the world which is expected to increase manifold in the near future. The Prime Minister approved the establishment of an Executive Committee which will ensure implementation of the decisions taken by the Policy Board.

He also approved the setting up a separate cell of professionals under MD, KS&EW to undertake approved tasks and handle the work of development of shipbuilding industry in Pakistan.

The Prime Minister emphasised the need for the development of human resource in this sector and asked the Karachi Shipyard to prepare a highly skilled workforce. He said the government is simultaneously taking steps to facilitate and promote the marine equipment manufacturing industries and other support industries in the country.

The Prime Minister was informed that shipbuilding is an attractive industry for developing nations, because shipyards are labour intensive and employ a large number of workers including a wide range of ancillary industry.

In his presentation, MD Karachi Shipyard and Engineer Works briefed the meeting about the salient features of the proposed shipyards.

He said that the two shipyards to be built at Gwadar and Port Qasim cover approximately an area of 500 acres and each would also include two dry docks of approximately 600,000 dwt (dead weight tonnes) thus catering to building and repairs of heavy ships.

Highlighting the proposed work plan 2007-08, he said the plan envisages the physical demarcation of sites, process of land transfer, feasibility study of sites for shipyards, selection of business houses and financial advisors, short-listing of potential leading shipyards for joint ventures, training plan for workforce and ancillary support industry. The Prime Minister of Pakistan is the chairman of the Policy Board.

Two new shipyards planned

 

[Neo]

Govt providing Rs21bn subsidy to agriculture ​

Sunday, September 09, 2007
By Adeel Pathan

HYDERABAD: The Government of Pakistan is giving Rs21 billion in subsidy to farmers for increasing per acre yield as well as reduce the cost of production of agriculture commodities, said the federal minister for food and agriculture Sikandar Hayat Bosan on Saturday.

He was addressing the inaugural ceremony of a two-day national agriculture conference organised by the Federation of Chambers of Agriculture Pakistan (FCAP) at Sindhi Language Authority Hall.

Responding to queries of newsmen the minister said that government is aware of the problems of growers and formulating policies to address them. He said that RS 170 billion have been provided to farmers in form of agriculture credit last year and this year this amount has been increased up to 200 billion rupees.

About imports and exports of agriculture commodities, the minister said that government have to think about consumers being the stakeholder besides keeping in view the benefit of farmers but said that commodities are importedin case of shortage.

Sikander Bosan further said that there is no ban on cotton import as well as export and added that farmers are getting reasonable prices for the cotton almost of international level prices. He said that the cotton is being imported of the variety that we don’t produce and added that difference on cotton prices is because of different varieties.

He said that present government restarted the subsidy for the growers and Rs21 billion in subsidy was given on fertilizers and duty of agriculture machinery has also been withdrawn.

The federal minister for agriculture and food and livestock further said that flour prices in Pakistan is lesser than India as flour is being sold in India at Rs24 per kilogram and in Pakistan it is Rs15 to Rs16 per kg.

About sugarcane crushing season, he said that provinces as well as sugar millers have been consulted in this regard and have been directed in Sindh to begin crushing from 15-20 October to produce sugar from 1st of November and in Punjab 1st of November has been fixed as crushing date.

The minister said that when he talks about growers this means small farmers comprising of 92 per cent agriculture sector and said that because of government positive policies the crops production is increasing. He said that production of various crops is increasing but marketing is still a problem.

He said that Rs1.8 billion have been allocated for the development of livestock sector alone and gave credit to President Musharraf for better agricultural policies.

Bosan said that earlier the total outlay of agriculture stood at Rs340 million that has now been enhanced to 16 billion rupees and added that there is nothing to worry about WTO (World Trade Organization).

Delivering his welcome speech president of FCAP Syed Qamar-uz-Zaman Shah presented the problems of growers of the country and added that this conference has been convened to discuss the problems of growers on country level. He was of the view that cost of production of agriculture commodities should be reduced and more subsidy should be provided to the growers of the country and termed wheat bumper crop was result of better policies of government.

He asked the government to extend subsidy for electricity, inputs and tube wells to reduce the cost of production so that growers would be in a position to produce better crops. He said that with the reduction of cost of production more production would come in market and consumers would also become beneficiary of the subsidy and demanded that agriculture products should not be imported at any cost.

He appreciated the crop insurance policy and called upon the State Bank of Pakistan (SBP) Governor to direct the private and public sectors banks to insure the loan of growers in view of natural calamities. He also demanded withdrawal of General Sales Tax (GST) on food products. The heads of delegation of four provinces as well as AJK also spoke at the occasion and provincial secretary agriculture and federal agriculture commissioners also attended the conference.

Govt providing Rs21bn subsidy to agriculture