Pakistan Economy - News & Updates - Archive

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Senior engineers leave PIA: report

224 engineers have left and only 43 new appointments;PIA inducts expert with no experience in civil operation

Sunday, October 07, 2007
By Saad Hasan

KARACHI: The recovery of national flag carrier Pakistan International Airlines (PIA) from financial haemorrhage can be bogged down by the departure of experienced engineers.

More senior engineers have left the Engineering Department of PIA than new entrants at a time when PIA is considering increasing its fleet, European officials noted in a quality assurance report available with The News.

“In addition, an expert in aeronautical field has been recruited, mainly in airworthiness section, but without experience in civil operation,” said the report that was prepared following the visit of a European Union inspection team earlier this year. It said the expert had a military background.

Both actions seemed not to be valid in a short time, and a significant promotion of engineering managers occurring at the same time could create more problems than benefits, the report added.

PIA aircraft allowed into the 27-nation bloc are subject to EU clearance. Nine aircraft, including B-747s and A-310s, are still under scrutiny, since 11 aircraft from the two series were cleared three months ago.

After a large part of PIA fleet, which comprised 42 aircraft, was barred from entering the EU airspace on safety concerns, the airline management has embarked upon rationalisation of unprofitable routes.

But the problem of excess employees: 440 employees to one aircraft, and financial losses creeping up 20 per cent to Rs7.7 billion in six months to June 2007 coupled with an engineering expertise drain could hamper the management’s restructuring plan.

“Most seniors have joined Emirates, Etihad, Qatar and other airlines,” an engineer from PIA’s Engineering Department said. “Those airlines are offering good money.”

Around 224 engineers have left the company and only 43 have joined despite the fact that basic pay of the employees was increased by 35 per cent late last year, the European Union report notes.

While the official spokesman for the airline denied if there was any crisis due to shortage of engineers, he acknowledged some had left for better pay. “In the coming month the remaining (EU-barred nine) aircraft would be cleared.”

The spokesman also referred to timely arrival and departure of flights, something recently achieved by the airline, as a step towards improvement.

However, boiling tempers among re-deployed contractual workers could mar that progress.

Hired by the airline through a contractor, these employees of basic pay group of 1-4 say their meagre salaries at Rs8,500 are forcing them to think of taking dire action.

“We will go on strike during the Haj operations, which starts in the middle of November,” one of the employees said, claiming they were 3,326 in number.

Asked if it was a sensible move at a time when the management was already looking at the option of downsizing, he said: “They cannot do this. Contractual employees are responsible for very important jobs in departments ranging from engineering to technical ground services.”


Senior engineers leave PIA: report

 

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$132 million sent abroad by foreign investors in two months ​

KARACHI (October 07 2007): Repatriation of profit by the foreign investors is rapidly increasing, as during the first two months of the current fiscal year, 132 million dollars have been sent abroad, showing an upsurge of some 49.2 percent.

According to reports, foreign investors are taking full advantage of the government policy, allowing them to repatriate 100 percent of the profit earned in Pakistan to their home country.

After this massive upsurge, the overall repatriation of profit has reached 132.20 million dollars during July-August of the current fiscal, as previously it stood at 88.60 million dollars during the same period of the last fiscal, showing an increase of 43.60 million dollars.

The major share of repatriation witnessed in the financial sector, in which foreign investors have invested million of dollars during the last few years due to rising profit in this sector.

Investors have taken back some 40.8 million-dollar profit from the financial sector, which has gone up by 750 percent or 36 million dollars during July-August from 4.8 million dollars during the same period of the last fiscal. While the communication sector is the second leading sector, wherefrom some 32.3 million dollars' profit has been sent aboard. However, it is lower than 51 million dollars repatriated by foreign investors during the first two months of the last fiscal year.

Latest statistics, released by he State Bank Of Pakistan (SBP) show that foreign investors have sent 10.7 million dollars from food sector; 5.4 million dollars from tobacco and cigarettes; 3.4 million dollars from chemical sector; 7.7 million dollars from oil and gas exploration; 1.2 million dollars from pharmaceutical; and 12 million dollar from power sector during the first two months of the current fiscal year.

Besides, some 1.4 million dollars have been sent by trade sector; 9.1 million dollars from transport; 3.1 million dollars from storage facilities; 32.3 million dollars from communication sector; 2.2 million dollars from personal services and some two million dollars from other sectors have been repatriated during July-August.

It may be mentioned here that during the last fiscal, the repatriation of profit showed an increased of 299.8 million dollars or 59 percent to 804.2 million dollars as compared to 504 million dollar was sent during the 2006 fiscal year 2006.

Business Recorder [Pakistan's First Financial Daily]

 

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Inflation up 10.73 percent year on year ​

ISLAMABAD (October 07 2007): The SPI-based inflation was 10.73 percent up on week ending October 4 as compared to the same period of last year, with 12.61 percent dearness for the low income group. The Federal Bureau of Statistics data released on Saturday showed that the prices of kitchen items were going up regularly, without an iota of relief.

The SPI inflation was recorded 162.45 percent on October 4 with a 0.48 percent increase against 161.68 percent of previous week. The low-income group was more affected by the price hike, as inflation was recorded at 12.61 percent for Rs 3000 earners against 8.14 percent for those having monthly income above Rs 12000.

The week under review showed that price hike was 12.55 percent for people earning Rs 3000 to Rs 5000 and 11.58 percent for those earning between Rs 5001 and Rs 12000.

The SPI bulletin, based on data collected for about 53 items from 17 centres showed increase in 18 items, decline in 9 items, and 26 items remained unchanged. Persistent increase in essential kitchen items' prices has been eroding the budget of those who earn between Rs 3000 and Rs 5000.

The prices of tomatoes, onion, wheat flour, potatoes, moong pulse washed, gram pulse washed, masoor pulse washed, gur, firewood, eggs, bread plain, and red chilli increased during the week with a maximum increase of 46.85 percent in the prices of tomatoes. The price of per kilogram tomatoes went up from Rs 26.66 on September 27 to Rs 39.15 on October 4.

Though the prices of 26 items remained unchanged during the week under review, these were more expensive as compare to last year. The prices of 20 items increased in double digits over the same period of last year.

These included tomatoes 44.41 percent, onions 22.46 percent, wheat average quality 21.24 percent, mustard oil 39.50 percent, red chillies 44.44 percent, bread plain medium size 11.88 percent, egg hen (farm) 37.50 percent, firewood 11.95 percent, wheat flour average quality 22.77 percent, rice Irri-6 46.34 percent, rice Basmati broken 59.13 percent, sugar 10.04 percent, milk fresh 12.70 percent, milk powered Nido 31.01 percent, curd 12.61 percent, veg ghee (tin) 29.51 percent, cooking oil (tin) 29.29 percent, sandal gents Bata 25.06 percent, chappal sponge Bata 11.24 percent, matchbox 26.87 percent, and bath soap Lifebuoy 17.72.

Business Recorder [Pakistan's First Financial Daily]

 

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Doing business in South Asia: reforms drop number of days needed to import ​

KARACHI (October 07 2007): Recent reforms undertaken by the government in respect of doing business in Pakistan has resulted in drop in the number of days required to import in the country from 39 to 19 days. The protection given to investors has transformed Pakistan into one of the most reliable country for investment.

These remarks were made by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former President Tariq Sayeed, while addressing the symposium on "Doing business in South Asia, prospects and constraints held in New Delhi on October 4.

According to details available here on Saturday, the symposium was organised by Saarc Chamber of Commerce and Industry (Saarc-CCI). Tariq Sayeed, who is the life member of SAARC-CCI, said that as a result of the adoption of liberalised investment regime, global standards and practices, Foreign Direct Investment (FDI) of over eight billion dollars came to Pakistan last year.

Speaking on trade between Pakistan and India, he said the volume of un-official trade indicated that tremendous potential existed between the two countries. If the illegal trade is converted into official business, the current volume of trade may touch three billion-dollar mark coupled with huge revenue gains for both the countries.

Tariq Sayeed identified 21 potential sectors for promotion of trade between Pakistan and India and explained benefits of increasing trade within South Asia region. Besides identifying potential areas, he also pinpointed some barriers causing hindrance in the growth of trade within this region.

He emphasised that there was a strong need that the governments of Pakistan and India create a congenial business and investment environment. For instance Safta, which has not materialised due to some discrepancies, could play an effective role in increasing the trade share of the two countries in the world, he said.

Business Recorder [Pakistan's First Financial Daily]

 

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National Foods endorses excellent financial results ​

ISLAMABAD (October 07 2007): The 36th annual general meeting (AGM) held on Friday, of one of the most diversified food companies in the country, National Foods Ltd, endorsed the excellent financial results achieved for the financial year ending June 30. A final cash dividend of Rs two per share and three bonus shares for every 10 ordinary shares held were approved.

The AGM was informed that the company achieved sales of Rs 2.39 billion during the year, compared to sales of Rs 1.84 billion in the previous year. Similarly profit after tax registered a sizeable increase at Rs 129 million compared to a little over Rs 70 million in the previous year. The corresponding earnings per share stood at Rs 30.41 compared to Rs 16.55 in the previous year.

"National Foods Limited's strong growth is directly attributable to our adherence to our vision and our core values in all our operations and credit goes to the company's management and its employees who worked as a close knit team to convert the vision into reality," said Company Managing Director and Chief Executive Abrar Hasan. National Foods Limited is manufacturing over 110 food products in 12 major categories, ranging from plain spices, ingredients and basic recipes to pickles, ketchup, snacks, desserts and jams and jellies.

Business Recorder [Pakistan's First Financial Daily]

 

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UAF scholar develops value-added food items ​

FAISALABAD (October 07 2007): Food scientists of National Institute of Food Science & Technology (NIFST), University of Agriculture Faisalabad (UAF), have made significant breakthrough in producing a variety of value-added foods from cereals, meat, milk, fruits and vegetables.

This was stated by Dr Umar Farooq, who completed his PhD research under the supervision of founder NIFST Director Professor Dr Faqir Muhammad Anjum. Giving the details of his research, Dr Umar Farooq said that keeping in view the importance of food industrial waste management and utilisation of organic acids in food products as acidulates or preservatives, the research project was planned to produce value-added food products (citric and lactic acids) from corn steep liquor and sugarcane molasses through fermentation technology.

The main objectives of the study were to develop a culture and isolates of Lactobacillus species and Aspergillus niger from indigenous sources, etc. Dr Umar said that value-added products (lactic and citric acids) were produced from sugarcane molasses and corn steep liquor and the fermentation conditions were optimised with special reference to fermentation time, temperature and substrate levels.

"The lactic acid was used as acidulant for preparation of soft cottage cheese and citric acid was used for the preparation of apple jam and apple soft drink", he added. He said the production of lactic acid and citric acid by sugarcane molasses and corn step liquor at commercial level depending upon the composition of these food industrial wastes.

He also recommended the scientists and researchers to make further attempts for producing the organic acids with different combinations of these wastes so that a medium could be suggested for commercialisation of the technology depending upon cost of production and its end use quality.

UAF vice-chancellor Professor Dr Bashir Ahmad while congratulating the PhD scholar, directed Controller of Examinations to sanction his name to the degree of philosophy. He is the 554th PhD scholar produced by the university since its inception.

Business Recorder [Pakistan's First Financial Daily]

 

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Dubai-based company to invest 500 million Dirhams in power project​

DUBAI (October 07 2007): The Dubai based ETA Star Group part of Abdullah Al Ghurair Group has signed an implementation agreement worth 500 million Dirhams with Pakistan's Ministry of Water and Power, to set up a power project in Pakistan. TransAsia Gas International LLC, a subsidiary of Al Ghurair Investment LLC is a co-investor in the project.

ETA's subsidiary Star Power Generation Limited will spearhead this gas-fired combined cycle 134-MW Independent Power Project (IPP). It will be based at Dharki, district Ghotki in Sindh, Pakistan. The plant will be allocated low BTU gas by Pakistan government from their Mari Deep reserves for 25 years.

It is likely to be completed and functional by 2010 and will supply 134-MW electricity to national grid. Commenting on deal, Hameed Salahuddin, Director of ETA Star Group said this power generation project and other infrastructure projects initiated by "us in Pakistan are a testament of our commitment to the country's development. We are proud to be instrumental in contributing to and supporting overall infrastructural development of Pakistan."

ETA Star Group is simultaneously developing an Dhs825m hydel power station in northern Pakistan. It is one of pre-qualified bidders for the privatisation of Pakistan State Oil Company Ltd and also developing a 100,000 barrels/day capacity petroleum refinery at Port Qasim, Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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25 more desalination plants for Thar coalfields by year-end ​

KARACHI (October 07 2007): Sindh government will install another 25 units of reverse osmosis (desalination) plants in the Thar coalfields. Sources in Sindh Mines and Mineral Development Department told Business Recorder here on Saturday that technical report on installation of the 25 units were submitted to the government last Monday.

According to sources, it is hoped that the units would be functional and provide usable water by the end of current fiscal year. The units will be installed in Lakhra coalfield near district Dadu, Sonda-Jheruk coalfield near district Thatta and Badin coalfield.

Each unit of the reverse osmosis plant has a capacity to treat 0.1 million gallons of saline water daily. The total capacity of 25 units, therefore, is to treat 2.5 million gallons of saline water per day.

The government had allocated Rs 550 million for installation of these plants in Badin and Dadu districts, the sources, and hoped that work on the project would be completed by the end of 2007-08 fiscal year. It may be recalled that 29 such units have already been installed in the Thar coalfiled.

The desalination units, on completion, besides removing salinity problem and for cooling the power plant, would also be used for domestic purpose in Lakhra coalfield, Dadu district and Badin, the officials said.

Business Recorder [Pakistan's First Financial Daily]

 

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Businessmen delighted over Musharraf’s re-election ​

Sunday, October 07, 2007

KARACHI: The business community of Pakistan has welcomed the unofficial results of President Musharraf’s re-election with delight.

The business community leaders are breathing a sigh of relief as they hope that with the President continuing his term for another five years, the economic policies will remain stable, which would eventually help them in their trades.

Zubair Tufail, Vice President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that while Saturday’s results are unofficial and everything is subject to the Supreme Court’s final decision, he sees General Musharraf’s re-election for the next five years as a good sign for the country.

“Pakistan has good investment opportunities and if any cautious investor was holding back due to the political situation, he would not do so any more and therefore the foreign investment into the country is likely to improve immensely.”

Masood Naqi, Chairman, Korangi Association of Trade and Industry said that though this news is welcome by all the businessmen, the opposition is going to be creating a big hype.

He says, “Our concern is not in politics but in the economy. We want stability and therefore now our country should concentrate on general elections.”

Siraj Kasim Teli, Patron in Chief of SITE Association voiced that the elections do not affect the businessmen; their direct concern is economy and economic policies.

He said “There would be better FDI in Pakistan as policies are expected to remain stable now. However, real peace would come after the general elections when the final governing body settles down to assume its place.”

Kaiser Bengali, an economist, however sees the situation on the micro side rather than the larger view. He predicts that the political situation is not likely to improve as the opposition parties wont sit quiet.

He says: “The personal rifts of the politicians are going to increase rather than decrease as General Musharraf is not accepted in many circles. There would be more strikes and riots which would mean the common man getting affected.” “The labourers earning daily wages are the most affected as strikes mean these small businessmen have no jobs for the day. These people do not have savings or sources of extra income,” he continues.

“Everyone is more concerned about the big businesses and foreign investments but they are not so affected by political uncertainty as these small businessmen are. The big businesses have options of recovering losses that is not possible for labourers,” he says.

Sources in Islamabad and Lahore also informed that the businessmen hailed the news of Musharraf’s re-election and hoped there would be no further ado. Some said that they hoped the general elections would be held peacefully now.

A political analyst from Islamabad said that the recent events had led to severe impact on the city’s business which is hoped would recover now that situations seem to have taken a turn for the better.

Businessmen delighted over Musharraf’s re-election

 

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Reverse remittances increase by 49pc​

KARACHI, Oct 6: First two months of the new fiscal witnessed the much accelerated pace of reverse remittances in the form of profits and dividends which the companies in Pakistan are paying to their investors or shareholders living abroad.

The trend has started taking a solid shape for the last three years and is the direct outcome of privatisation of local entities bought by foreigners or new companies operating in Pakistan owned by the foreigners.

Official figures issued on Saturday showed that in the two months July-August 2007-08, reverse remittances reached $132.2 million compared to $88.6 million in the corresponding period last year.

The concern for policy-makers and the economic managers is the pattern of rising remittances abroad which has kept increasing. Only last year the total outflow of profits and dividends reached around $850 million.

During the last two months, the rising trend showed a growth of 49 per cent in the reverse remittances which could be alarming if the trend persists.

Analysts said the rising trend of reverse remittances would continue since more and more companies owned or having shares in the companies by the foreigners, have started paying dividends or profits.

Rising reverse remittances are threatening the balance of foreign accounts of the government already facing damaging uncontrolled rising trade and current account deficits.

If the total repatriation of remittances reaches higher than $1 billion by the end of this fiscal, it would be of serious problem for the country.

It would be an additional burden on the economy while the borrowing to meet the deficit would increase further.

The highest payment was made by the financial business (banks) to its foreign shareholders as a total 40.8 million were repatriated during the first two months of the current fiscal.

However, remittances by the telecommunications sector dropped to 32.3 million against $51 million repatriated during the corresponding period of last year.

A telecommunications expert said the reverse remittance from this sector would further rise in the next couple of months.

Power sector repatriated $12 million against $5.6 million, transport sector $9.1 million against nil payment and oil and gas exploration $7.7 million against $2.1 million during the first two months against the corresponding period of last year.

The country received foreign investment of over $7 billion last year which was widely welcomed by the government and the money was invested in several sectors.

However, the output of these investments would take time to show their results and finally it would add more to the reveres remittances and create serious threat for the government’s ability to make payment.

The government meets its current account deficits through this foreign investment, remittances being sent by the overseas Pakistani workers, privatisation proceeds and borrowings from the international market and donors.

Reverse remittances increase by 49pc -DAWN - Business; October 07, 2007

 

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IT returns under universal self assessment scheme:​

CBR faces shortfall of Rs 9 billion in IT receipts

* Number of IT returns grew from 1.32 million to 1.47 million but tax payments decreased from Rs 12.350 billion to Rs 3.264 billion

ISLAMABAD: The Central Board of Revenue (CBR) has suffered a major set back in income tax receipts along with income tax returns under the Universal Self Assessment Scheme (USAS), a senior tax official told Daily Times on Saturday.

The authorities are faced with a shortfall of Rs 9.086 billion in income tax along with income tax returns, as some 1,477,893 income tax returns were filed and income tax payments of Rs 3.264 billion were received by October 5, 2007. Some 1,326,246 income tax returns were received along with income tax payments of Rs 12.350 billion during the same period of last fiscal year, the official added.

Although the income tax returns this fiscal year have risen by 151,647 as compared to the last fiscal year 2006-07 but the income tax payments have gone down from Rs 12.350 billion in 2006-07 to Rs 3.264 billion in 2007-08, the official disclosed.

Corporate sector during last fiscal year filed some 1208 income tax returns and paid Rs 10.395 billion in income tax as compared to 536 income tax returns and income tax payments of Rs 2.277 billion for the fiscal year 2007-08, the official explained.

Non-compliance by the corporate sector led to major shortfall of Rs 8.118 billion in the income tax receipts this fiscal year 2007-08 when total receipts of Rs 2.277 billion for this year are compared to the total receipts of Rs 10.395 billion in the fiscal 2006-07, the official disclosed. The corporate sector’s income tax returns shortfall also stood at 672 income tax returns by October 5, 2007 with total returns of 536 in the fiscal year 2007-08 as compared to 1208 income tax returns filed by the same date last year.

Association of Persons (AOPs) filed 13,887 income tax returns with income tax payments of Rs 47.638 million this fiscal year as compared to the 19,429 returns and Rs 70.698 million in income tax payments.

Salaried class filed 74,926 income tax returns and paid Rs 48.917 million as income taxes in the current fiscal year as compared to 56,652 income tax returns and paid Rs 148.751 million as income tax in last fiscal year, showing a big difference in tax paid.

Non- Salary class filed 427258 income tax returns and paid Rs.754.573 million as income tax by October 5, 2007 as compared to 492915 returns filed and Rs.1.599 billion paid as income tax during the same period last fiscal year, the official informed.

By October 5, 2007, the corporate sector, Association of Persons (AOPs), salaried class and non-salaried taxpayers had filed 516,607 income tax returns and paid Rs 3.128 billion as income tax along with their income tax returns. Till October 5, 2006 some 570,204 income tax returns were received and Rs 12.213 billion was paid as income tax by the said four categories of taxpayers.

Statements in the shape of salary certificates in this fiscal year were 36,091 and tax paid along with these returns stood at Rs 9.966 million as compared to the 105,795 certificates filed and Rs 28.966 million income tax paid in the last fiscal year. Some 9,704 Importers filed income tax statements and paid an income tax of Rs 0.378 million during this fiscal year as against 12,612 income certificates and Rs 0.22 million in income tax paid in the last fiscal year.

Exporters filed 6,658 income certificates and paid Rs 1.23 million in this fiscal year as compared to 7,457 income certificates filed and paid Rs 1.397 million in income tax in the last fiscal year.

Retailers having turnover of up to Rs 5 million filed around 10,868 certificates and paid Rs 57.647 million as income tax by October 5, 2007 against 26,847 retailers who filed certificates and paid Rs 85.008 million in income tax in the last fiscal year.

Retailers having a turnover of more than 5 million filed 662 income statements and paid Rs 6.07 million as income tax in the current fiscal year as compared to 2,142 income certificates filed and income tax of Rs.10.003 million paid in same period of last fiscal year 2006-07.

Contractors and Suppliers filed 18,411 income statements and paid Rs 5.476 million as income tax up to October 5, 2007 as compared to 27,623 income statements filed and Rs 8.897 million by such in the same period of last fiscal year 2006-07.

Taxpayers in the category of others filed 18,207 income statements and paid Rs 56.046 million as income tax by October 5, 2007 as against 756,042 income statements filed and Rs 1.891 million as income tax paid during the last fiscal year, the official added.

The CBR is left with no option to extend the last date for filing of income tax returns and the CBR bosses has issued instructions to the Director Generals of Regional Income Tax Offices and Commissioners of income tax to explain the reasons that why this situation has arisen in this fiscal year, the official concluded.

Daily Times - Leading News Resource of Pakistan

 

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Govt seek export growth by infrastructure development​

By Ijaz Kakakhel

ISLAMABAD: The government plans to undertake major projects for infrastructure development that are mandatory for facilitating exporters to maintain the annual growth and double exports from Pakistan over the next five years. Arranging exhibitions are one of the most effective tools for foreign exchange earnings. For this purpose the government has approved an Expo Centre Lahore with a revised cost of Rs 2.970 billion.

The project was originally approved at a cost of Rs 1.970 billion but later on the cost was revised to Rs 2.970 billion due to raising of the ground level by 7-8 feet, induction of international standard cat walks, up gradation in the furnishing of convention center, two 11 KV independent electricity feeders for 4500 KW load, modern multi-story parking plaza and strategic alliance with the reputed joint ventures for consultancy, officials in the ministry of commerce told Daily Times here on Saturday.

The project aims to provide a state-of-the-art modern facility for the promotion of country’s exports and other related economic activities. The proposed Expo Centre will provide over 30 thousand sq. metre space to local and foreign manufacturers/traders to exhibit their products to promote their business. The ministry of commerce (TDAP) and the government of Punjab through its industrial department are the sponsoring agencies of the project.

The officials in the ministry of commerce claimed that exports of the country confront several challenges including low productivity and poor quality, poor processing technology and practices, lack of trained and skilled workforce, limited testing facilities, poor infrastructure facilities and lack of product development and diversification. However, the officials said that the government has adopted several initiatives for enhancing exports through industrial diversification, technology up gradation, investment in infrastructure, standardisation, quality control and productivity enhancement, improvement in business climate and reducing the cost of business and acceleration of exports by establishing expo centres in big cities (including Expo Centre Lahore).

The cost of the project has jumped up by Rs one billion, including, increase in infrastructure development from Rs 120 million to Rs 290 million, the cost of convention centre rose by Rs 100 million, the internet protocol (IP) technology rose by Rs 160 million, furniture and furnishing cost grew by Rs 100 million, utility connection costs surged by Rs 75 million, construction of parking plaza cost went up by Rs180 million, foreign consultancy/alliance charges increased by Rs 35 million and overhead expenditures rose by Rs20 million, the official added. The revised cost of the project has been approved in the Executive Committee of the National Economic Council (ECNEC) held last month in which 45 different developmental projects worth Rs 154.1 billion were approved.

Daily Times - Leading News Resource of Pakistan

 

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Sialkot district government spending Rs 400 million on new roads ​

SIALKOT (October 08 2007): Sialkot District Government is spending more than Rs 400 million during the current fiscal year on construction of 200 km long new roads in Sialkot, Pasrur, Daska and Sambrial tehsils of the district. The work on the project would be started soon in all tehsil headquarters.

Official sources told Business Recorder here on Sunday that the construction of 93 roads had already been completed at a cost of more than Rs 356 million while repair and rehabilitation of 85 roads at a cost of Rs 230 million had also been completed.

The district government will Rs spend 16.4 million on purchase of new hospital machinery for improvement of Allama Iqbal Hospital and extending modern treatment facilities to the patients. More than Rs 58.8 million will be spent on purchase of medicines for government hospitals of Sialkot district, and Rs 25 million will be spent on repair and construction of government hospitals and dispensaries.

Business Recorder [Pakistan's First Financial Daily]

 

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Development disparities and the MDG targets​

The Millennium Development Goals (MDG) report 2006 on annual update produced this year, provides information on the state of human development indicators up to year 2005.

It reveals development gaps within different parts of the country. A total of 98 districts have been ranked on various development indicators. The report confirms that politically skewed development paradigm has left the underprivileged areas less developed. Disparities in the level of development among the provinces are also evident.

Sindh and Balochistan suffer from relatively poor state of human development whereas Punjab emerges as the leading province in almost all areas of human development.

Primary enrolment ratio: According to the report, net primary enrolment ratio has increased from 33 per cent in 1998 to 48 percent in 2005. Likewise, literacy rate has increased from 45 per cent in 2001 to 53 per cent in 2005. This shows significant improvement.

But the provincial distribution reflects grim disparities. The top 10 districts comprise nine from Punjab and the remaining one from NWFP. These districts are Sialkot, Narowal, Jehlum, Chakwal, Gujrat, Rawalpindi, Abbotabad, Attock, Lahore and Gujranwala.

The first district from Sindh is Karachi which stands at No 11. The first district from rural Sindh is Sukkur which stood at No30. The first district from Balochistan is Kech which secured 18 position. Among the bottom 10 districts, seven belong to Balochistan and three to NWFP.

Literacy rate: Top 10 districts under this indicator also show similar trend. Seven districts belong to Punjab and the remaining provinces share one district each. These districts are: Karachi, Rawalpindi, Lahore, Chakwal, Gujranwala, Jehlum, Gujrat, Quetta, Abbotabad and Sialkot. The first district from the rural Sindh is Sukkur which stands at No 11 and the first district from Balochistan is Pishin at No 16. The bottom 10 districts comprise eight from Balochistan and two from NWFP.

Gender equality: Gender disparities are visibly prevalent throughout the country as measured by several indicators. However, the MDG report focuses on net primary enrolment. In terms of better gender equality top 10 districts are eight from Punjab and two from NWFP.

The districts are: Toba Tek Singh, Narowal, Lahore, Gujranwala, Jehlum, Sialkot, Abbotabad, Mansehra, Sarodha and Mandi Bahaudin. The first district from Sindh is Karachi which stood at No 13 and the first district from rural Sindh is Sukkur which stood at No 31. The first district from Balochistan is Sibi which stood at No 27. The bottom 10 districts comprise six from Balochistan, three from NWFP and one from Sindh.

Youth literacy: Ranking show nine districts from Punjab among the top 10 districts and the remaining one is from Sindh. Sialkot, Lahore, Gujranwala, Gujrat, Karachi, Jehlum, Rawalpindi, Faisalabad, Toba Tek Singh and Chakwal are among the top rankers.

The first district from rural Sindh is Sukkur which is ranked at No 18 and that from Balochistan is Quetta ranking at No 29. Balochistan and NWFP share seven and three districts respectively among the bottom 10 districts.

Child mortality: Pakistan is among the poorest performers on this important indicator. Countrywide, the trend of disparities is not too different. Punjab shares eight out of 10 top districts, whereas Balochistan and NWFP share one each. The top 10 are Chitral, Jehlum, Sialkot, Gwadar, Khushab, Attock, Chakwal, Gujrat, Minawali and Bahawalnagar.

The first district from Sindh, Hyderabad is ranked at 23. Zhob is the first district from Balochistan ranked at No 21. The bottom 10 districts include seven from Balochistan, two from Sindh and one from NWFP.

Clean drinking water is believed to be a fundamental human and a citizen right, which is unfortunately a rare commodity in the remote rural areas as well as in some mainstream urban areas. According to the ranking of the 98 districts, Punjab and Sindh share eight and two districts respectively among the top 10 districts. These districts are: Shaikhupura, Narowal, Layah, Gujranwala, Bakhar, Lahore, Kasur, Shikarpur, Ghotki and Sialkot. The first district from Balochistan is Quetta which is ranked poorly at No 47. Among the bottom 10 districts, Balochistan has six districts, one from Sindh and three from NWPF.

Sanitation: The trend is somewhat different in this indicator. Sindh, NWFP and Balochistan share three districts each among the top ten districts and Punjab shares only one.. The top ten districts placed in sequence are Quetta, Charsada, Kohat, Noshehro Feroz, Mardan, Pishin, Larkano, Nawabshah, Chaghi and Lahore. Balochistan has six districts among the bottom ten districts. Sindh and Punjab have one each and NWFP has two districts among the bottom 10 districts.

Conclusion: A scrutiny of the data indicates that Balochistan and Sindh receive lesser attention in the key areas of human development. Even within Punjab, which ranks highest among all the indicators except sanitation, almost all the districts belong to Central Punjab indicating poor state of human development in south Punjab. The following table of ten top districts clearly shows the disproportional trend of human development among the provinces.

Likewise, if the bottom 10 districts are analysed, the trend gets reversed. Balochistan shares the highest number i.e. 47 out of the 70 bottom districts whereas Punjab has only one among the bottom 70.

This trend shows that equal opportunities for development are not being provided to all citizens and the politically marginalised provinces of Sindh and Balochistan (specially their rural areas) are receiving less than the desirable share in development. Ironically, these are the richest districts in terms of natural resources. This is contrary to the Declaration of the United Nations on the MDGs which says: “No individual and no nation must be denied the opportunity to benefit from development”.

If the government is serious in providing equal development opportunities to all citizens, it should create special MDG funds for the provinces/districts to improve their human development indicators.

Development disparities and the MDG targets -DAWN - Business; October 08, 2007

 

[Neo]

Technology package to promote oil palm​

Dr Ali Muhammad Khushk & Bhugro Mal

OIL palm is an important plant for obtaining edible oil. It is a tropical plant which grows in warm climates at altitudes of less than 1,600 feet above sea level.

It is a perennial plant with a year-round canopy intercepting solar radiation. The tree grows up to 50 feet in height with large primate leaves. Oil palm is normally monoecious i.e., it has both male and female flowers on the same tree. It produces thousands of fruits in bunches weighing between 10 and 40 kilogrammes. The oil is derived from the fruit. A hundred kilogramme of fruit produce around 20kg oil.

Each fruit is almost spherical, oval or elongated in shape. Generally the fruit is dark purple, black before it ripens and orange-red when ripe. After soybean, palm oil is the second major oil produced in the world. From its home in West Africa, the oil palm has spread throughout the tropics and is now grown in over 16 countries. However, the major centre of production is in Southeast Asia with Malaysia and Indonesia together accounting for around 83 per cent of the world palm oil production.

A single hectare of oil palm may yield 5,000kg of crude oil, or nearly 6,000 liters of crude, making the crop remarkably profitable. An average yield of oil palm in major producing countries is about 3-4 tones of oil/ha/year. By contrast, the yields of most competing oil crops are typically less than one tone/ha/year. This means that productivity of oil palm is at least 3-8 times more than most oilseed crops. Thus, only seven million hectares of oil palm are required to supply 20 per cent of the world demand for oil and fats (1.09 billion tones), compared to the 80 million hectares of oilseeds needed to supply another 24 per cent of this demand.

Of the total produce of the world, only 10 per cent accounts for industrial uses. Palm oil is rich in carotene responsible for its red colour, and a rich source of vitamin ‘A’ and ‘E’ In addition palm oil is an excellent source of toco-trienol, a powerful anti-carcenogenic substance which is helpful against thrombosis.

Recently, it has been found that oil palm is a rich source of phenolic anti-oxidants which is good for health. Palm oil intake raises levels of the high-density lipoprotein (HDL, ‘good’ cholesterol) at the expense of the low-density lipoprotein (LDL, ‘bad’ cholesterol).

Palm oil (and its products) has good resistance to oxidation and heat at prolonged elevated temperatures; hence, making it an ideal ingredient in frying oil blends. Other parts of the tree may be used for industrial purposes such as leaf fibres and empty fruit bunches are used in making chipboard and plywood and the trunks of old palm trees can be used in making furniture. Palm oil is used in soaps, candles, detergents, lubricants, fuel, caked residue, cosmetics, and other personal-care products.

The plant is cultivated on various types of soils, with growth supported by better drainage and water content of the soil. The plant needs a well-drained sandy or clayey soil for better yield. The propagation is done by its seeds after providing proper treatment. The tree bears fruits within two-and a half years after plantation. Various tools are used to harvest the plant such as chisel or hooked knives attached to long poles and some times, by climbing on tree directly. The fruits are obtained from the tree till it gets around 30 feet high.

Pakistan is one of the largest consumers of palm oil besides China, India, Japan, Europe and the Middle East. An estimate of the per capita consumption of palm oil in the world is nine pounds per year with the total consumption figure of around 33 million tons. China is the maximum palm oil consuming country.

Pakistan’s ‘edible’ oil requirements have increased from 0.3 million tones to 1.95 million tones. The per capita consumption of edible oil is around 14-15kg as against an average of 8-9 kgs for developing countries. But yet production of edible oils has remained inadequate and fluctuating. So the requirements are met by supplementing local production with imports. Of the total requirements, 29.15 per cent is met from local production and the remaining 70.85 per cent through imports. Edible oil imports are a drain on national exchequer which has increased from Rs7228.6 million in 1987-88 to Rs 44975 million in 2004-05.

Cultivation of palm in the country can beautify the coastal areas and minimise environmental pollution reducing considerably the imports of edible oil bill.

Oil palm possesses great potential for plantation in coastal areas of Sindh and Balochistan where irrigation facilities are available. In Sindh areas of Karachi Thatta, Badin, Hyderabad (Tando Muhammad Khan), Mirpurkhas, and Sanghar (Tando Adam) are suitable for cultivation of oil palm whereas Vinder and O’Mara in Balochistan are also potential areas.

Income of farmers in the above areas of Sindh ranges from Rs10,000 to Rs32,000 per acre per year through cultivation of sugarcane, rice, cotton, banana, onion etc. Whereas these areas of Balochistan are the poorest. Farmers grow maize, millet, moong, mash and fodder. Income level of farmers in these areas is very low. From one acre oil palm plantation, the growers can earn an income of about Rs40,000 to Rs50,000 per year. Additional income can be generated by intercropping various crops in the oil palm fields.

Introduction of palm oil crop in both the regions will result in bringing a positive change in the socio-economic status of the population and provide employment opportunities besides triggering development in the area. The Oil Palm Development Pilot Project (ODPP) was approved at a cost of Rs61.655 million for implementation in the province of Sindh in the areas of Thatta, Badin, Hyderabad, Mirpurkhas and Tando Adam of Sanghar districts and in Balochistan areas of Uthal, Hub, Pasni, Gawadar, Jewani and Ormara.

The actual oil palm acreage which has successfully been achieved under this project is 1,009 acres. Around 48,000 seedlings were imported from Malaysia in October 2002. Oil palm plantation on 30 acres at Vinder farm in Balochistan is being looked after with satisfactory results with banana inter-cropping. Farmers are getting appropriate income by intercropping sugarcane, wheat, sunflower within the oil palm plantation.

Although, sugarcane and banana are exhaustive crops but they help in the growth of oil palm by creating micro-environment and increasing humidity. The Parc has also successfully introduced oil palm at the Coastal Agricultural Research Station, Karachi. Both, the plant growth and nut yield was obtained from 70 plants. At Hub and Pasni about 2,500 plants of hybrid oil palm were planted by Agriculture Department, Balochistan, and are being maintained with promising results.

A complete package of production technology is essential for the promotion of oil palm in the country. Research work is therefore, needed for the purpose. There is a need for training of the manpower involved in oil palm cultivation and development. Private sector should also be involved in the oil palm promotion and installation oil extraction mill. Highly saline areas need to be avoided to grow oil palm. Proper plant, water and soil management is also needed for the success of the plantation.

Technology package to promote oil palm -DAWN - Business; October 08, 2007