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Surgical instruments development strategy to fetch $1bn

Sunday, September 16, 2007

LAHORE: The Federal Minister for Industries Jahangir Khan Tareen has expressed confidence that by implementing the proposed development strategy for surgical instruments industry would touch US$1 billion by 2015.

He stated this at a meeting held at the Small and Medium Enterprise Development Authority (SMEDA) head office on Saturday while granting approval to the ‘Comprehensive Strategy for Sustainable Development of Surgical Instrument Sector.’

The strategy has been developed by SMEDA through a Strategy Working Group comprising representatives from the Surgical Industry Association, SMEDA and J E Austin, USA. The meeting was attended by Ajmal Cheemah, provincial minister for Industries, CEO, SMEDA Shahid Rashid, amid a large number of stakeholders from the surgical Instruments sector.

Tareen, while addressing the participants, disclosed that the government had invested over Rs4 billion on developments of the four sectors whose development strategies were compiled by SMEDA through the concerned Strategy Working Groups. The sectors include dairy, gems and jewellery, marble & granite and furniture he said and expressed pleasure to know that a similar comprehensive strategy was ready for development of surgical instrument and medical devices industry.

He advised SMEDA to initiate the paper work for establishment of a company on Private-Public Partnership basis to start the implementation process. Meanwhile, he summoned a meeting of the SWOG at Pakistan Industrial Development Corporation (PIDC) on October 2, 2007 to manage provision of the required funds for implementation of the Strategy.

Talking to newsman on the occasion, he said that the surgical instruments industry was part of the priority sectors to be worked out by SMEDA on his advice. The surgical instruments sector, he said, had a potential to grow through export, but is currently witnessing a decline from US$150 million in exports because it is loosing its competitive edge. He said that exports of this sector have shrunk to US$105 million this year.

Surgical instruments development strategy to fetch $1bn
 
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Technologies to improve rice yield
By Hafeez ur Rehman, Dr M. Farooq & Dr S.M.A. Basra



RICE is the country’s second staple, high-valued and major export crop. But there has been a decrease in area and size of the crop in recent years. Lower production especially of Basmati varieties is due to heavy rains in lower Sindh and in Punjab at the time of maturity of the crop. The better prices offered by millers for sugar cane crop last year is also the reason for shifting of the area to sugar cane crop.

Despite high-yielding varieties and resource conservation technologies in use, there has been decrease in the crop area and yield. This necessitates research through constant involvement of farmers and sharing of findings among them.

Weed control, rainfall pattern, sufficiency of water supply, field elevation and hydrology are the major determinants of farmer’s choice for rice production method. In addition, wage rates, availability of family labour, and power for land preparation were found to be the major economic factors influencing the choice of cultivating methods.

Transplantation is the most common method in rice cultivation. Rice plants raised in a nursery bed are transplanted into puddled and leveled fields 15 to 30 days after seeding. Rice seedlings can either be transplanted manually or through machine.

Land preparation activities in the main field begin with pre-saturation irrigation to saturate the topsoil layer and to create a pounded water layer (about 5cm in depth) for land soaking, followed by ploughing and puddling (harrowing under saturated soil conditions). Puddling is done not only to control weed, but also to increase water retention, reduce soil permeability, and ease field leveling and transplanting. After land preparation, the crop growth period in the main field goes from transplanting to harvest. This traditional transplantation requires high continuous water inputs and labour at a critical time, which often results in shortage and increase labour costs.

Traditional method of raising rice nursery is by using pre-germinated seeds usually after soaking them into water for 48 hours which makes them ready for transplanting within 40-45 days of sowing.

Better quality seeds produce vigorous seedlings with increased growth rate and high percentages for germination. The seedlings become ready within 30 to 35 days. Improved method of raising nursery is by using primed seeds treated with CaCl2 and KCl for both coarse and fine varieties of rice. This treatment helps improve growth, yield and quality of the transplanted rice.

Excessive use of nitrogen (N) leads to crop lodging, invites insect pests and diseases, pollution of water sources and ultimately loss of yield and grain quality. Simple tool to optimise nitrogen application in rice is use of leaf colour chart (LCC).

An attractive technology to increase production after harvesting the crop is to take a ratoon crop as in the case of sugar cane can also be practiced in rice as an alternate to double cropping in areas where water is available after the main crop season.

Better yield from a ratoon crop greatly depends on agronomic and management practices of land preparation, sowing date, adequate plant density and spacing, use of appropriate cultivars, water management, application of adequate rate of fertilisers, appropriate height of cutting, and control of diseases, insects and weeds. These interactions are needed to be studied properly for manipulating ratooning ability agronomically.

Area under Chinese hybrid rice has increased. Producers of hybrid rice predict that it will reach 8,57,143 acres by 2012, admitting that the entire production would be for export. For growing high quality paddy from hybrid rice needs the following steps: seed from previous crop should be discouraged, healthy nursery seedlings should be transplanted, seedbed should be properly prepared, optimum dose of fertilisers at right time should be applied and right amount of water at a depth of 2-3cm should be maintained. Proper plant protection measures and timely harvesting of crop at maturity make hybrid rice production different from farmers’ usual practices. Production of hybrid rice seed from China would usher Pakistan in a new era in rice production.

Under the changing socio-economic environment, there is need of a method that results in high yield and involves use of fewer inputs than in the traditional methods i.e. water, chemical fertilisers or agro-chemicals.

In this regard, system of rice intensification (SRI) is a new method to be introduced in the country. It involves use of certain management practices, which provide better growing conditions for rice plants, particularly in the root zone, than those for plants grown under traditional practices. Cultivation of any variety of rice under the rice intensification system (SRI) has resulted in at least double yield. No external inputs are needed for a farmer to benefit from SRI. The methods should work with any seed that is being used now. However, what is needed is to have an open mind about new methods and a willingness to practice them.

Key success in SRI involves early transplantation of nursery seedlings with first two leaves between 8 t0 15 day raised on moist soil instead of constant flooding. Seedlings should be transplanted singly rather than in clumps of two or three or more in a square pattern usually at 25x25cm space to reduce competition among plants. The square pattern also facilitates weeding.

One thing that should be taken care is that the soil must be kept moist but not saturated during the vegetative growth period. Later, after flowering, 1-3 centimeter of water is kept standing on the field. However the field is drained completely 25 days before harvesting.

In addition to these principal practices, weeding and organic inputs practices are extremely beneficial when using SRI. Many experimental trials have been carried out at the University of Agriculture, Faisalabad, on this system. However, there is need of more on-farm research experiment to verify this new method of increasing rice yield.

Direct-seeded rice (DSR), an alternative to transplanting, is grown like any other upland crop with seed placed in the soil by seed cum fertiliser drill with or without ploughing. Direct-seeded crop grows faster, reduces labour, crop matures early by 7-10 days, water use is more efficient with less methane emission and often-higher profit in areas with an assured water supply.

Many seed priming techniques such as osmo-hardening, hardening and on-farm priming have been employed to enhance the performance of direct-seeded rice under field condition.

Agricultural scientists through direct-seeded crop employing seed priming techniques in many on-farm research trials at various fields and the research area of crop physiology department of Faisalabad Agricultural University have obtained improved emergence, better growth, yield and quality of rice.

Osmo-hardening with calcium chloride and potassium chloride have been found the most promising and effective seed priming techniques to improve performance of direct-seeded rice.

Other management and agronomic requirements for DSR is same as in case of puddle-transplanted rice. For optimum nitrogen application an LCC value of three and four is used for scented and other rice cultivars. One or two light irrigations are required to facilitate emergence and afterwards irrigation can be applied at an interval of 7-10 days depending upon the soil type and weather conditions.

Weed is a major issue in direct-seeded rice and scientists are making efforts to eliminate this menace. Weed management early in rice season hold key for a successful DSR crop. If it rains before seeding, or it takes time to seed after pre-sowing irrigation, most weeds would germinate early. Pre-germinated weeds can be eliminated with chemical treatment or by 1-2 very shallow ploughings. Experiments have shown that weed problem can be tackled efficiently by integrated weed management practices. Growing of rice varieties (Basmati type) have greater ability to compete with weeds.

Technologies to improve rice yield -DAWN - Business; September 17, 2007
 
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USTDA Invests $1.4Mln under US-Pakistan Strategic Partnership Projects
Pakistan Times Business & Commerce Desk​

WASHINGTON (US): US Trade and Development Agency has awarded an $ 810,000 grant to Habibullah Energy Limited (HEL) to address critical power shortages and promote energy security in Pakistan under the US-Pakistan Strategic Dialogue, affirmed by President George W Bush and President Pervez Musharraf in March last year.

The grant will partially fund the early investment analysis on a proposed 150 megawatt (MW) power plant, as well as develop a detailed plan to ensure the reliable supply of coal for the plant from the Lakhra coalfields in Pakistan.

In addition to the USTDA grant, HEL will contribute significant additional resources towards the completion of the study.

The grant was conferred in a signing ceremony at USTDA headquarters in Arlington, Virginia. USTDA Acting Director Leocadia I. Zak and Managing Director of HEL Saeed Khan Peracha signed the grant agreement.

Abdul Wajid Rana, Economic Minister of the Embassy of Pakistan; Tom Cutler, Foreign Affairs Officer of the US Department of Energy; and Ms. Esperanza Gomez Jelalian, Executive Director of the US-Pakistan Business Council also participated in the signing ceremony.

Bilateral cooperation in the energy sector was identified as a priority area under the US-Pakistan Strategic Dialogue with coal and renewable energy development specifically recognized as key areas for cooperative efforts.

The proposed 150 MW integrated coal mining and power project is a major private sector initiative that will help alleviate Pakistan’s present and growing power generation shortfall, and will be a major advance in the development of the country’s enormous, but virtually untapped coal resources.

The USTDA recently awarded two grants in support of Pakistan’s renewable energy sector. One grant, in the amount of $ 325,000, will fund a feasibility study for Pakistan’s Alternative Energy Development Board for the establishment of a proposed 5-10 MW waste-to-energy power plant near Karachi.

The other grant, valued at $263,000, will fund technical assistance to Pakistan’s National Electric Power Regulatory Authority to assist with renewable energy tariff-setting procedures, recommendations for changes to the legal framework affecting the renewable energy sector, and organizational improvements to NEPRA.

The opportunity to conduct the USTDA-supported study for HEL will be competed on the Federal Business

Opportunities Website at Federal Business Opportunity. Interested US firms should submit proposals according to the

instructions contained in the Federal Business Opportunities announcement. HEL will select the US firm that will provide the assistance.●

Pakistan Times | Business: USTDA Invests $1.4Mln under US-Pakistan Strategic Partnership Projects
 
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ADB seeks justification for $5.2 billion power loan

ISLAMABAD (September 17 2007): The Asian Development Bank (ADB) has raised the question with the government whether the power distribution companies (Discos) would be in a position to absorb the investment of $5.2 billion for the period of 2008-17 and would be able to pay back within the stipulated timeframe, sources in Finance Ministry told Business Recorder.

They said that the ADB Country Director and World Bank mission met Advisor to Prime Minister on Finance on August 30 and September 3, respectively, and discussed the forthcoming multi-tranche loan facility for the power sector.

The ADB Country Director said that overall investment in the power distribution sector would be $5.2 billion for 2008-17, and raised a few queries before finalising the pact.

The issues which the bank said needed further clarification from all the concerned Discos were: details of investment; whether approval of the CDWP/Ecnec had been obtained, what would be the impact of proposed investment, and what benefits would be obtained in terms of savings and system efficiencies; whether the Discos have the capacity to absorb the investment and pay back; what would be debt equity ratio; what were assets and liabilities of Discos; what would be impact on tariff; how would this investment change the balance sheets of Discos; would it be sustainable or not; had the financial and technical analysis of such investment been carried out; and what would be the key financial and operational indicators. These were the main concerns of the donors.

"The answers to all these questions have been sought from the companies on the instructions of Prime Minister's Advisor on Finance," sources said.

They said ADB mission had also indicated that the current overhanging debt of Discos was Rs 130 billion, which would increase to Rs 220 billion by the end of current financial year.

Finance Ministry is of the view that these figurers need to be re-checked, very carefully, and all concerned are required to carry out necessary accounting adjustments, if not already done.

"The Finance Ministry has asked the Discos to investigate the matter thoroughly and submit a report within one month," sources said. In addition to this loan, the ADB also offered investment of $3 billion in water and power sectors in Pakistan during the next three to five years, but questioned transparency in utilisation of the funds.

The federal government had also sought $6.46 billion investment from the bank for the construction of Diamer-Basha dam for which a working group comprising concerned federal ministries and development partners would be established to work out financing modalities.

The ADB has assured technical and financial support for major water and power sector projects including upgradation of distribution systems and transmission lines in order to improve system efficiency for supply of electricity to the consumers besides major rehabilitation and infrastructure projects in water sector.

Business Recorder [Pakistan's First Financial Daily]
 
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New digital innovations-driven economic landscape in the offing

FAISALABAD (September 17 2007): A new economic landscape is being created globally that highlights a shift from geographical industrial clusters to virtual clusters, driven by digital innovations. According to Planning Commission sources the clusters were emerging in the new competitive space offered by a web-based business world, where "how you do business" is more relevant than "where you do business".

For Pakistan it is a challenge to operate the next generation communication networks, which combine convergence with speed, stability, security, and flexibility.

Official sources mentioned that the ongoing massive economic globalisation and dispersion of information and technology was changing the scale and nature of human enterprise.

They said that an important likely consequence of the techno-economic-knowledge revolution was the erosion of equity, in the world at the same time as the tools for banishing inequity and poverty would become available to mankind and this is likely to be an important challenge for Pakistan.

Commenting over the "Globally Integrated Economy", official sources said, by 2030 economies were likely to diffuse across national boundaries into truly global supply chains, whether in industry, services or ownership. This dispersal of work and strategic linkages across national boundaries, coupled with information integration, and a shift in the technological content of world trade towards high technology, would be the most conspicuous features of the globalised economy of the future. There would be continuing relocation of manufacturing and an increasing share of design and services from the developed countries. Benefiting from relocation activities and investments, and developing into regional or global hubs, would be major challenge for Pakistan, sources mentioned.

According to official sources, there would be fierce competition in both domestic and external markets. The role of the multinationals and regional supply chains would also have expanded, not only in industry but also in agriculture and services. Pakistan would face a challenge of putting in place the infrastructure, and matching of skills with demand, within the country as well as those of trans-national agents.

Commenting over the "Nature of Work and Workplace Plan", sources stated that the several factors were influencing work and employment in the emerging global 24 hour/ 7 day societies and economies of the 21st century, but nearly all of them were technology related.

Some key features were short product lifecycles, global competition and supplies chains, and processes with focus on the entire value chain and not just on internal processes. In addition, countries playing catch-up are also more open to trade (ie have a high ratio of exports to GDP).

All these factors have resulted in a continuously changing economy, with technology and globalisation influencing what we produce and serve, and how it is done. Pakistan will need to address the challenges of a changing workplace, changing demand for skills, and a flexible gender inclusive workforce.

According to sources, the most abrupt transformation is occurring in Asia, which is expected to be the engine of global growth and consumption in the foreseeable future. If some emerging economies in Asia can sustain their growth for several decades, then three of the four largest global economies would probably be Asian in 2030.

The first goal is the attainment of a just society without which prosperity and growth are not sustainable. It will discuss the various deficits and propose means to overcome them.

The second fundamental tenet of Vision 2030 is the establishment of a society which is innovative and productive, and which makes excellence its guiding star. This is the only route to be competitive in the 21st Century.

Business Recorder [Pakistan's First Financial Daily]
 
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Smeda prepares plan for modernising sports goods industry

SIALKOT (September 17 2007): Small and Medium Enterprise Development Authority (SMEDA) has prepared a multi-dimensional strategy for the modernisation of Sports goods industry especially the soccer ball manufacturing sector enabling it to cope with the new challenges of global market.

Official sources told Business Recorder here on Sunday that under the programme Sports Industries Development Centre (SIDC) costing Rs 273.11 million would be established on 40 kanal of land on Sialkot-Daska road. The construction work on the project would be started by the end of the current month.

The main concept of the project is to enable Sports Goods sector to adopt new technology of mechanised ball, which is threatening the current hand stitched inflatable soccer ball.

The main benefits to mass from the project are facilitate in sustainable Pakistan's position in international market of hand stitched inflatable balls in general and soccer ball in particular, provide skilled workforce to the sector, help develop imported machinery locally through reverse engineering, develop an indigenous patent for mechanised soccer ball and get it registered internationally, provide assistance in setting up mechanised ball production lines in individual industrial units, developing prototype balls for the industry and developing quality vulcanisation and past molds.

Sialkot is known internationally as a producer of quality products in sports goods, surgical instruments, leather garments, gloves and accessories, sportswear and musical instruments.

The Sports Goods sector of Sialkot is the main export sector of the city with total exports of about US 350 million dollar per annum. The city caters to 85 percent of total world demand of hand stitched inflatable balls, which means around 40 million balls annually worth US 210 million dollars.

The soccer ball manufacturers are facing serious threats in the form of "Thermo-Molded Ball" that uses medium end technology to produce a ball having most of the characteristics of hand stitched ball.

Under the plan Sports Industries Development Centre (SIDC) will introduce thermo-bonded ball technology in Sialkot and it would provide technical know how, trained labour force, reverse engineering prototype development and mold making services besides, the centre will also manufacture and sell thermo-molded balls to the exporters on order. The capacity of the centre on single shift basis would be 5000 balls per day.

The city is dotted with thousands of small and medium enterprises, which are engaged in honouring their global commitments for export of value-added quality goods such as sports goods, Surgical Instruments, Leather Goods, Gloves, Badges and Musical Instruments etc.

Business Recorder [Pakistan's First Financial Daily]
 
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Government allocates Rs 40 billion to develop communications sector

FAISALABAD (September 17 2007): Federal Government has allocated an amount of Rs 40 billion in the current fiscal year 2007-08 for the development of Communications sector.

According to Ministry of Communication sources, the development of infrastructure with special focus on the road network is the government's top priority. Sources mentioned that the construction work on different mega projects costing 250 billion rupees is in progress across the country.

Official sources mentioned that the vision for the Transport and Communications (T&C) sector is the establishment of an efficient and well integrated system that will facilitate the development of a competitive economy and poverty reduction, while ensuring safety in mobility, accessibility and effective connectivity.

The strategic thrust is on optimal utilisation of the existing capacity, improved management for maintenance and operation and co-ordinated use of various modes of transport. Private sector participation in the sector would be enhanced and institutional capacity building and research and development activities undertaken to enhance the efficiency of T&C sector.

The transport sector currently accounts for 11 percent of GDP, 16 percent of fixed investment, 35 percent of the total annual energy use, and about 15 percent of the Public Sector Development Programme. The T&C sector covers roads, road transport, railways, ports and shipping, aviation and telecommunications. The sector has direct and indirect linkage with all important sectors of the economy, which influence economic and social development.

Business Recorder [Pakistan's First Financial Daily]
 
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'Pakistan in top 10 in trade dynamism, market flexibility'

ISLAMABAD (September 16 2007): Pakistan has been listed among top 10 countries in the world business dynamism and market flexibility, according to a 'Competitiveness Support Fund' (CSF) report, issued here on Saturday. The report says that Pakistan has shown serious efforts in improving competitiveness ranking which the World Economic Forum measures on performance basis of any country.

It said that Pakistan's private sector played a pivotal role in making Pakistan competitive in the world market. The report said that CSF undertook a number of initiatives during the last over one year to help Pakistan get fit in global market. It engaged public and private sector leaders to address the economic issues jointly.

CSF is an independent body established in 2006 to reposition Pakistan's economy on a more competitive global footing. It is a joint initiative of Ministry of Finance and the United States Agency for International Development (USAID)1.

The precursor work identified several gaps in important sectors of the economy. CSF proposed a series of interventions to accelerate the adoption of practical competitiveness-building initiatives in Pakistan. The gaps lack innovative approaches, linkages between academic community and industry, poor dialogue on policy and reform issues, slow commercialisation of innovation and weakness in the legal framework for a viable economic environment.

CSF is meant to help Pakistan achieve the goal of a competitive economy by providing input into policy decisions, improve regulatory and administrative frameworks and enhancing public-private partnerships. It will also provide 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.

CSF activities will help the producers to ultimate product quality. By obtaining better value and better prices for quality products, and improving co-operation throughout the Pakistani economy, CSF will contribute to poverty alleviation by providing more income for producers and better employment prospects for employees.

The government has included, for the first time, competitiveness into poverty reduction strategy. Its salient features were private sector development, intensifying deregulation, privatisation and liberalisation, enhancing competitiveness and productivity, special economic zones, value-addition in agriculture and riding the globalisation wave in export markets.

CSF also carried out a study on special economic zones (SEZs) by benchmarking Pakistan against China, India, Malaysia, Vietnam and Thailand. Globalised economies require policies based on de-regulation, privatisation and liberalisation. This theme requires reduction in tariff barriers and custom duties for imports, the prices and increase in quality of the products for the consumers.

CSF has developed an action plan on unifying the policies and promoting the effective creation of special economic zones in Pakistan. This action plan includes developing an Act on Special Economic Zones which is based mostly on the Indian model and includes the legal and institutional framework for establishing and effectively operating the SEZs, incentives for developers and investors, standards for SEZ approval and the role of private sector and provincial and federal governments.

Business Recorder [Pakistan's First Financial Daily]
 
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Pakistan's CDNS distributes Rs178b profit in 2006-07

17 September 2007

ISLAMABAD — Pakistan's Central Directorate of National Savings (CDNS) has distributed Rs178 billion profit in 2006-07 and this is a great achievement, says its senior official. "Let me also inform you that our total stocks have risen to an all time high Rs1.067 trillion," Ahmad Owais Pirzada told a news conference here yesterday.

"We also received gross new investment of Rs483.549 billion and we repaid Rs415.898 billion during the last financial year", He said that the central bank has allowed the CDNS to sell its products in Saudi Arabia and other Middle Eastern countries for which negotiations were being finalised with foreign banks who would work on behalf of the directorate.

The plan, he said, was to sell government securities in Saudi Arabia, Kuwait and Qatar. The CDNS is already selling its products in the United Arab Emirates (UAE), Oman and Behrain through Habib Bank Limited (HBL) and the United Bank Limited (UBL).

"We would offer some good products to our Overseas Pakistanis and as soon as things are finalised we would start our business outside Pakistan", he said. In addition to that, Pirzada said that a number of other new Islamic products were being prepared to be offered to the general public once the CDNS achieved autonomy soon.

Responding to a question, he said that the ban on institutional investors have been lifted by the CDNS about six months ago. "But their investment has declined from 25 per cent to about 15 per cent," he added.

He told a reporter that another review of offering increased rate of interest on various national saving schemes was shortly due. Earlier, it offered little over 0.5 per cent more profit to its investors.

However, he said that benchmark of the CDNS profit was Pakistan Investment Bonds (PIBs) which were set by the central bank. But he agreed that interest rate on various saving products was less than India and Bangladesh.

In reply to a question, he said that there required legislation to convert the CDNS into Pakistan Savings to make it an fully autonomous organization. The federal cabinet, he said, has already approved the proposal of having new independent organization which will have its own rules and pay scales.

He said it took time to get the approval of the central bank, Securities and Exchange Commission of Pakistan (SECP), Law and Justice division and Establishment Division for creating a new organization. "It was delayed because it required the vetting by seven organizations".

Pirzada said that the president could promulgate the ordinance for having Pakistan Savings. But he said it would be good if the matter was legislated by the parliament and the issue was resolved once for all.

The corportisation of the CDNS, he said, was being pursued to ensure further investors' confidence. In this behalf, he referred to automation of the directorate by handing over software to all its outlets. Local networking is complete and in next six months time, the process will be finished satisfactorily, he said. It cost about Rs306 million to have this automation in the organisation. He said since it involved financial transactions, the CDNS wanted to offer an improved system to its investors.

Khaleej Times Online - Pakistan's CDNS distributes Rs178b profit in 2006-07
 
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'Economy suffers Rs 74 billion losses due to reduced yields, salinity'

FAISALABAD (September 18 2007): The estimated economic losses from reduced yields, salinity and rangeland degradation estimates of the combined losses exceeds Rs 74 billion annually, equivalent to more than one percent of GDP, while offsite cost such as the siltation of dams and changes in hydrology are not included due to data limitations.

According to a World Bank study, land degradation is a serious concern for Pakistan. Erosion is accelerating due to anthropogenic factors such as the destruction of natural vegetation and over-grazing. Degradation on arable land caused by wind and water erosion increased by almost 3.5 million hectares from 1993 to 2003 and comprised about 18 million hectares in total in 2003.

The regions most affected by soil erosion during this period are Sindh (about 1.5 million hectare increase in eroded land of which an estimated 360 thousand hectares is an increase in eroded crop lands) and Balochistan (about 2 million hectares increase in eroded land of which as estimated 500 thousand hectares is an increased in eroded crop lands), said WB study.

WB study mentioned that salinity is one of Pakistan 's most serious problems, while common to other arid regions, Pakistan has naturally saline soils, but the problem has been compounded by consistent mismanagement of irrigation and human induced soil erosion.

Official statistics indicate that over 25 percent of irrigated land suffers from various levels of salinity, with over 1.4 million hectares being rendered uncultivable due to excessive salinity levels. Salinity imposes direct economic losses, through reduced yields and less visible indirect losses through changes in farming practices or the cropping mix.

Business Recorder [Pakistan's First Financial Daily]
 
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'Sporting arms being exported to US and UK'

PESHAWAR (September 18 2007): Pakistan has started the export of sporting and hunting arms to United States and Britain while the country has also received orders from a number of other countries.

"The manufacturers of Dara Adam Khel had recently sent a sporting arms consignment orders were in the pipeline," Pakistan Hunting & Sporting Arms Development Company (PHSADC) Chief Operating Officer Brigadier Naveed Rahman (Retd) told Business Recorder.

Similarly, he said that another consignment worth $8,500 has been exported to United Kingdom while other order of demands were also in progress and near maturity. Hunting and sporting arms and equipment constitute a giant industry world-wide and the consumer market of these arms and equipment collectively in world is estimated more than $37 billion.

Business Recorder [Pakistan's First Financial Daily]
 
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Condensate and gas discovered in Sindh

KARACHI, Sept 17: Pakistan Petroleum Limited (PPL), the operator of Block 2568-13 (Hala), and its joint venture partner Mari Gas Company Limited (MGCL) have announced the discovery and successful testing of condensate and gas in the Adam X-1 exploration well located in district Sanghar, Sindh province.

According to a PPP press release on Monday Adam X-1 well was drilled on April 7 this year and reached the final depth of 3,566 meters on June 27.

Cased hole drill tests were conducted in three zones during July and August, out of which two zones yielded condensate and gas.

The lower zone flowed 12.5 million cubic feet per day of gas and 41 barrels per day condensate, whereas the upper zone flowed 14.9 million cubic feet of gas and 1,269 barrels of condensate per day.

A long-term test will be conducted for appraisal and determining a more representative flow potential and size of the field.

The prospects of the remaining part of the block are being evaluated for future exploration.

The joint venture of Hala exploration license consists of PPL (65%) and MGCL (35%).—APP

Condensate and gas discovered in Sindh -DAWN - Business; September 18, 2007

Condensate, gas discovered

KARACHI (September 18 2007): Pakistan Petroleum Limited (PPL), the operator of the Block 2568-13 (Hala), and its joint venture partner, Mari Gas Company Limited (MGCL), have announced the discovery and successful testing of condensate and gas in the Adam X-1 exploration well located in District Sanghar.

According to a PPL press release here Monday, Adam X-1 well was spudded on April 07, 2007 and reached the final depth of 3,566 meters on June 27, 2007. Cased hole drill stem tests were conducted in three zones of lower goru formation during July and August 2007, out of which two zones flowed condensate and gas.

The lower zone flowed 12.5 million cubic feet per day gas and 41 barrels per day condensate, whereas, upper zone flowed 14.9 million cubic feet per day gas and 1,269 barrels per day condensate. A long-term test will be conducted for appraisal and determining a more representative flow potential and size of the field. The prospects of the remaining part of the block is being evaluated for future exploration.

Business Recorder [Pakistan's First Financial Daily]
 
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Rs157bn revenue collected from oil, gas

ISLAMABAD, Sept 17: The government has collected highest-ever revenue on oil and gas, amounting to about Rs157 billion during the 2006-07 financial year.The amount included general sales tax (GST) collection of Rs64 billion on petroleum products.

According to the oil price revision announced by the Oil and Gas Regulatory Authority (Ogra) on Saturday, the government has slightly increased oil companies’ margin, dealers’ commission and inland freight equalisation margin on motor spirit and high octane blending component and reduced the petroleum development surcharge.

However, the overall price regime has been kept unchanged to keep GST collection at the same level. The government collects a GST of Rs7 and Rs8.46 a litre on motor spirit and HOBC,

respectively, in addition to about Rs9 and Rs16, respectively, as petroleum development levy on the two products.

At the same time, the government has doubled inland freight equalisation margin on motor spirit from Re1 to 1.98 per litre and from Rs2.05 to Rs3.85 per litre on HOBC.

The margin is the transportation cost the government collects on petroleum products to maintain uniform prices at 29 depots across the country. No explanation was given about the increase in transportation cost.

According to official statistics, the government collected tax revenue of Rs889.7 billion during the financial year ending on June 30, 2007.

Total tax revenue increased from 9.8 per cent of gross domestic product (GDP) in 2005-06 to 10.2 per cent of GDP in 2006-07, showing an improvement in tax-to-GDP ratio.

Likewise, the total revenue in 2006-07 amounted to Rs1.298 trillion or 14.9 per cent of GDP, showing an increase of 14 per cent of the GDP in 2005-06.

The statistics indicated that direct taxes in 2006-07 stood at Rs334.2 billion, against Rs214 billion during the previous year.

The government said the total expenditure on debt-servicing amounted to Rs369 billion in 2006-07 that included Rs319 billion as servicing cost of domestic debt and Rs50 billion spent on foreign debt servicing.

The consolidated accounts for 2006-07 showed that total development expenditure stood at Rs434 billion. This included Rs251 billion spent by the federal government on development and Rs182 billion spent by provincial governments.

The accounts also suggested that the government expenditure on retirement and pensions reached about Rs42.2 billion in 2006-07 as against Rs40 billion in 2005-06, showing an increase of about 5.5 per cent.

Rs157bn revenue collected from oil, gas -DAWN - Business; September 18, 2007
 
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BT cotton seeds to yield over 5m bales this season

KARACHI, Sept 17: More than five million bales of cotton this season -about 30 to 40 per cent of expected 14 to 15 million bales cotton output this autumn - is being obtained from the sowing of genetically modified seeds, which are either being smuggled from India or trans-shipped from Australia via Dubai or Hong Kong as a mis-declared item.

Officially, the government has not so far adopted bio-technological cotton seed (B.T cotton seeds) and it is banned. The government issues warnings to the farmers every year at the time of cotton sowing in June against plantation of B.T. seeds. But because of its pest resistant quality and a much better yield, the B.T. cotton has become popular among the farmers. Last season, the farmers, more particularly in Sindh, disregarded with contempt all official warnings and sowed B.T. seeds smuggled from India on big tracts of agricultural land and reaped as much as one million bales of cotton. In Sindh B.T. seeds are called Bhittai cotton.

This season, the farmers in Punjab too have sowed B.T. seeds in a big way and a rough estimate expects at least 30 to 40 per cent of cotton being obtained this season from the genetically modified seeds. Involved in local development of such B.T. seeds are two national science and research organisations under the government control, which are the National Institute of Bio-Genetic Engineering and Centre for Excellence for Molecular Biology.

Realising the popularity of B.T. cotton seed and improvement in yield, the government is understood to be seriously considering adoption of these seeds officially and associate a well-known American multinational with two national science research organisations for production of genetically modified seeds in the country.

Well connected sources say that the issue of official adoption of B.T. seeds came up for discussion last week at the annual meeting of Pakistan Central Cotton Committee held at Karachi last week with Food and Agricultural Minister Hayat Mohammad Bosan in chair.

The official in textile ministry, leaders of faming community and cotton traders had openly alleged that the seed mafia and pesticides mafia were against the official adoption of B.T. seeds in Pakistan. Normal cotton seeds obtained from market give an average yield of 15 to 20 maunds per acre but B.T. seeds give up to 100 maunds an acre if meticulously managed and normally the yield is not lower than 60 to 70 maunds in any case.

The genetically modified seeds were introduced in Pakistan about six years ago by an American multinational firm Monsanto that has its office in Lahore. This company has registered its patent internationally and expect the government to observe international patent rules.

“Any agreement with Monsanto will bind us with unbearable terms and conditions,’’ an official of agricultural ministry offered explanation last year in October. Under these terms, the Pakistan government will have to import B.T. cotton seeds every year from the US company because the seeds lose their pest resistant quality after one crop and a repeat sowing may in fact cause a disaster by spreading virus in the neighbourhood also.

The government is trying to blend foreign genetically modified seeds with local input by the scientists of two national institutions of Pakistan to make B.T. seeds more economical with a better yield and effective pest resistant. Both India and China have adopted these modified seeds but are entirely dependent on the foreign multinational company. Both these countries have tremendously improved on cotton output.

“In Pakistan we want to improve our output and with relative less dependence on foreign companies,’’ a well-placed source explained who was confident that if experiment on cotton seeds was successful, efforts will be made to extend this research on all other crops - grains, vegetables and fruits. He said that research was also being made to take care of environmental hazards, if any from sowing of these seeds, its harmful effects and all other aspects.

BT cotton seeds to yield over 5m bales this season -DAWN - Business; September 18, 2007
 
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Chinese help sought for new shipyards

BEIJING, Sept 17: Adviser to prime minister on Finance Dr Salman Shah held important meetings with key Chinese bankers, financial institution and shipbuilding companies for cooperation in setting up two giant shipyards in Pakistan during his visit to China.

“The basic purpose of these meetings was to hold discussions with Chinese for setting up two giant shipyards with a capacity of 600,000 dwt to be built at Gwadar and Port Qasim,” said a senior official at Pakistan Mission here while briefing APP about the PM adviser’s Adviser meetings in Dalian.

Mr Shah was in Dalian, a coastal city in northeast China’s Liaoning province to represent Pakistan in the “New Champions” seminar organised by World Economic Forum (WEF) from Sept 6-8.

The adviser, he said, besides participating in various forums, also held very important bilateral meetings with presidents of EXIM Bank and ICBC, chairman of China Banking Regulatory Commission, chairman of China International Capital Corporation, China Development Bank, the MMC, a reputed financial institution and prominent entrepreneurs dealing with ship building with basic purpose of cooperation in ship-building project.

The shipyards to cover an area of about 500 acres each and that include two dry docks of about 600,000 dwt thus catering for manufacturing heavy ships.

He said that Pakistan was desirous to build these shipyards in cooperation between Pakistani private sector and Chinese corporate and participation by the government.

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

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

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 future.

In these meetings, the official said, Dr Shah also briefed them about the vast prospects available in Pakistan in diverse fields of economy for investment.

He also informed the Chinese officials about the salient features of the joint Sino-Pak 5-Year economic development programme, free trade agreement and China specific special economic zones being developed in Pakistan and the opportunities available for Chinese investors there.

He said that Dr Shah also informed them that as per study conducted by a reputed international consulting company by the year 2050, Pakistan would emerge as the 4th largest workforce in the world and therefore, it has the capability to become the sound base of manufacturing industry in the world.

As per demography of Pakistan its 54 per cent population comprises 19 years of age bracket and soon they would be part of the economic growth.

By this, the adviser said that Pakistan’s growth prospects had brightened to new height, though at present too the country is sailing with excellent economic growth.

He said that due to such an excellent economic growth, the WEF had recognised Pakistan as ‘Champion Economy’.—APP

Chinese help sought for new shipyards -DAWN - Business; September 18, 2007
 
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