Pakistan Economy - News & Updates - Archive

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KARACHI (May 21 2006): The Export Promotion Bureau (EPB) is planning to establish "Electronics & Electrical Contract Manufacturing City" (EECM-City) in Karachi to help increase exports in value added engineering sector and to create job opportunities and skill development in the country.

In this regard the EPB would request the Sindh Government to provide a 100- acre piece of land for this purpose and it is expected that the Chairman EPB Tariq Ikram would discuss this matter with the governor and chief minister of Sindh in the near future. After completing of the said city in Karachi, the EPB would establish such cities in the other cities in the country.

A high level meeting, Chaired by EPB Chairman Tariq Ikram, was held here a few days back in which this issue was discussed thoroughly. Tariq Ikram said on this occasion that this opportunity be taken up very seriously as it not only helps increase exports in value added engineering sector but also creates job opportunities and skill development in the country.

He constituted an action team comprising of persons who are experts in their fields. The members of the team are Pervaiz Lodhie, President, LED Tronics based in Torrance, California, Miguel R. Santos, Director Boeing Company based in Seattle, Washington, Sultanul Arfeen, Arfeen Group of Companies, Shahid Zaki, Chairman and CEO, Philips-Pakistan, Zubyr Soomro, CEO, Citigroup Pakistan Operations, Mohsin Ali, Secretary General, the American Business Council of Pakistan and Riaz Khan, Executive Director Marketing EPB.

The line of action agreed was to first do a concept paper on the nature and size of opportunity and broadly how Pakistan could exploit this opportunity and the export and employment opportunity that could be expected. Thereafter to identity the sectors where outsourcing would be possible for Pakistan to cater to in the short and medium term. Thirdly, to develop a paper on the 'Case for Pakistan' and this would identify the benefits that a company abroad could expect if they outsource to Pakistan.

He also suggested that State Bank of Pakistan should also include this contract manufacturing industry in the Long Term Export Project Financing Scheme, which had been developed by SBP on the request of EPB to support innovative and new export initiatives.

In the meantime, EPB will contact International Trade Centre to get their technical expertise in order to launch the project. All the members of the American Business Council of Pakistan are fully supporting this project and have assured EPB to help the local electrical and electronics manufacturers in helping them to get order from USA.

 

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ISLAMABAD (May 21 2006): The Federal government has approved development schemes of worth over four billion rupees for Azad Jammu and Kashmir which include development of roads network and provision of clean drinking water.

These schemes were approved during a meeting, chaired by Deputy Chairman Planning commission Dr Akram Sheikh, while Secretary Kashmir Affairs Rasool Bux Baloch, Additional Chief Secretary AJK Mohammad Yousaf and Commissioner Mangla Dam Affairs Chaudhry Amir Afzal attended the meeting.

Development schemes approved by Central Development Working Party include construction of a bridge at Ratoah Haryam with a cost of 1.37 billion rupees and Greater Water Supply and Sewage development schemes for Mirpur city.

 

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KARACHI (May 21 2006): Site Association of Industry (SAI) has proposed that all machinery used for export industries including textile machinery be allowed to be imported at zero rate of customs duty.

In its budget proposal for the year 2006-07, the association noted that the requisite raw material (cotton) and skilled manpower are available in Pakistan and the only thing required at this stage is to have the necessary plant and machinery etc, in order to make our products competitive in the international market.

The association pointed out that Pakistan's survival in the international market would depend on only one factor ie how competitive cost effective and efficient our industry is. For this purpose there is constant need of undertaking massive BMR. The price of textile machinery in international market is exorbitant and, as such, we have to import second-hand machinery.

The present rate of customs duty viz. five percent is still high. It should be zero-rated in order to avoid hindrance in BMR and modernisation.

SAI also suggested that custom duty on spare parts should not exceed five percent.

The association noted that the present rate of custom duty on spare parts range from five percent to 25 percent, which is very high. In order to ensure that our textile processing industry remains competitive in the international market, the reduction in rate of custom duty is imperative.

The association pointed pout that the tax to GDP ratio is only nine percent in Pakistan and concern has been expressed at various forums on this.

SAI pointed out that in order to raise the tax to GDP ratio, what needs to be understood is that various segments that are part of the total GDP are outside the purview of taxes. Giving example of agriculture is 25 percent of our GDP but its share in taxes is zero.

The association pleaded that tax to GDP ratio will remain low until this anomaly is addressed. Similarly, in our total population of 160 million only about 1.3 million people are taxed. The same group is squeezed more and more to generate revenue.

At present, it is only these captive-tax-payers that alone have to bear the brunt of targeted-tax. A very big segment of the highly placed people owning enormous wealth, lucrative occupations and enjoying highly luxurious living - such as high profile professionals (doctors, lawyers, architects, artists etc), corrupt bureaucrats and state functionaries; feudal and agriculturists; individuals who have made huge profits on speculative real estate and stock market deals are all mostly out of the tax net. Some segments of the services industry such as wholesale and retail trade and the transportation sector play a large role in the GDP but have minimal contribution to taxes.

The association recommended that wherever income is generated it should be taxed in order to have a level playing field. The associated pleaded that emphases in this budget should be to increase the total numbers of direct taxpayers to 2.0 million people and then gradually increase it to 3.0 million taxpayers by 2009.

The association proposed that General Sales Tax (GST) be reduced from 15 percent to seven percent. The association pleaded that GST rate of 15 percent is abnormally high and is counter productive. It is instrumental in tax evasion and is promoting a smuggling regime. The rate of GST itself must be brought down to seven percent to eight percent and imposed across the board with better administration, except for the zero-rated export sector, if its base is to be expanded successfully.

Moreover, the GST is an indirect tax and the incidence of this is mostly on the poor section of the society and it increases their cost of living. The association recommend that withholding tax on all exports be brought down to 0.5 percent as the exports are getting very competitive and Pakistan is losing market share in value added goods.

SAI proposed that custom duties on industrial raw material should be completely abolished to promote local industry and make it more competitive. The association suggested that custom duties should only be levied on finished products / items / machinery.

 

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RAWALPINDI (May 21 2006): Industrialisation and skill-oriented education were imperative for eradication of poverty and unemployment, in this regard public and private sector should join hands to set up industries and provide vocational training to youths.

Islamic Relief Policy and Research's head Willem van Eekelen said here on Friday while talking to Rawalpindi Chamber of Commerce and Industry (RCCI) President Jalil Ahmed Malik.

He said, "Islamic Relief is conducting a survey to check the potential of industrialisation and establishment of vocational institutions to the give technical education to youth." He said that establishment of a trade centre, small industrial units and vocational training institutions was the topmost agenda of Islamic Relief.

 

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KARACHI (May 21 2006): Meinhardt - a Singapore-based company - would bring foreign investment worth $160 million into the country by commencing its construction projects in the country."

"We are coming with $160 million," company's Managing Director, Shahid Nasim told mediamen during a press conference held to launch ceremony of its project 'Creek Marina Phase II' on Saturday. He said that his company intends to set a new benchmark of luxury living and for this purpose a world-class project is under way in the DHA Karachi.

"We have come up with the state-of-the-art technology for the first time in Pakistan besides senior consultants and building materials," he said, adding that the seriousness of the company is evident from the fact that it has hired consultants, contractors and engineers from abroad only.

"Senior consultants would vigilantly observe the pace of work and the project would be completed on or before deadline of three and half years," he added.

Elaborating the infrastructure quality of the project, Nasim said, "The project has been designed to incorporate the highest level of building safety and security."

"The building structure is also designed to withstand winds and earthquakes of much higher intensity than those specified in the building codes," he remarked.

He pointed out that the interior designs have been specially created by the world's famous hotel designers - Hirsch Bedner Associates of USA.

"The construction of superstructure, finishes and all the mechanical and electrical systems will be carried out by international contractors," he added.

Nasim said that customer mortgage financing would be exclusively provided by Askari Commercial Bank.

"Once completed, Creek Marina will be the first 6-star residential development in the country," he said and added that the foundation construction is progressing faster than scheduled.

 

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ISLAMABAD (May 20 2006): Chairman Kuwaiti ZETECH Group Sheikh Hamood Al-Sabah accompanied by Chairman of Kuwait-Pakistan Investment Group, Abdul Azeem Al-Shomali called on Minister of State for Petroleum and Natural Resource Muhammad Naseer Mengal here on Friday and expressed his group's interest to set up an oil refinery in Pakistan.

The Chairman ZETECH Group commended the speedy growth of Pakistan's economy and vast investment potential in the oil and gas sector.

He said his Group would invest in setting up oil refinery, besides participating in privatisation activities.

Welcoming the delegation, the minister said there existed a huge potential for the prospective investors in Pakistan's oil and gas sector and Government would welcome as well as facilitate Kuwaiti Group in setting up oil refinery.

He said Government was offering lucrative incentives to the investors.

Naseer Mengal said Government was also exploiting the untapped oil and gas resources to met growing energy need of the country.

Investors would be encouraged to set up oil refineries in Pakistan to enhance refining capacity form 6 million tons to 13 million tons annually.

The minister also briefed the delegation on the upcoming projects in oil and gas like Iran-Pakistan-India (IPI), Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline projects and import of LNG from neighbouring countries.

He said those projects would prove a milestone for increasing the volume of economic and trade activities in the region.

Naseer Mengal explained salient feature of the privatisation process of the state-owned oil and gas units and invited the Kuwaiti Group to participate in it for the mutual advantage.

 

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PTI, KARACHI

May 20: The normalisation and liberalisation of trade between India and Pakistan would help both countries to tap the potential for economic integration, according the World Bank economists.

"The time has come to capture 'peace dividend' and this opportunity should not be lost," Philip Schuler, a World Bank panelist, was quoted as saying by the local media at a seminar titled 'Opportunities and Challenges of Pakistan-India Trade'.

Zarine Naqvi, another economist of the World Bank, said a team of the World Bank had conducted a one-and-a-half year study on India-Pakistan trade.

Pakistan's Ministry of Commerce had asked the World Bank to evaluate options for expanding trade with India, she said.

Schuler said free trade agreements like SAFTA could spur economic growth and reduce poverty in the countries involved. The members of SAFTA should minimise the use of sensitive list and restrict use of anti-dumping measures.

SAARC should also negotiate trade agreements with other large markets like ASEAN, he said.

Minister of State and Export Promotion Bureau (EPB) Chairman Tariq Ikram rejected apprehensions that free trade between Pakistan and India would harm certain industries here.

However, he said, it would be better if private sectors from both countries enter maximum joint ventures to complement each other's economy, the official APP news agency reported.

"India was very surplus in raw materials than Pakistan. We see huge confidence in private sectors on both sides," he said at the seminar.

The World Bank economists said the normalisation and liberalisation of bilateral trade would help the two sides to tap potential for economic integration.

The economists said progress on political front was very important for trade between the two countries to grow. They said Pakistan should continue expanding the positive list, grant Most Favoured Nation status to India and ensure a level playing field for trade with India, 'The News' reported.

Pakistan could negotiate on agriculture subsidies given by Indian government, high specific textile taxes and non-tariff barriers, they said, adding that the Indian firms saw many barriers on the Pakistani side.

Informal trade between the two countries was estimated at USD 545 million in 2005, of which Pakistan's exports were hardly USD 10 million. Informal trade takes place for those goods that are not on Pakistan's positive list or have high tariff in any of the two countries.

A case study of wheat and sugar, which was conducted by Lahore University of Management Sciences and made part of the report, concluded that liberalisation of trade of sugar and wheat could help both governments manage their deficits, because huge subsidies were usually paid on these items.

Another case study of the textiles sector found that FTA could induce specialisation and trade in intermediate inputs like cotton yarn. One more case study suggested that liberalisation of trade in fans would benefit Pakistan and in bicycles would benefit India.

The EPB Chief said the liberalised trade between Pakistan- India would help bring socio-economic uplift of people of both the countries.

He agreed that it would be more proper for Pakistan to import industrial raw materials from India for value-addition instead of finished goods.

 

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QUETTA: Balochistan is a vast province, almost half of Pakistan in terms of territory, with limited resources to build its huge infrastructure. The National Finance Commission Award is based on distribution of resources on a population basis and it has merely 5.11 per cent of the country’s population. Its revenue base is narrow at around five per cent of revenue expenditure in a fiscal year.

The narrow tax base is because the central government retains all powers to levy taxes. Under the law, provinces are barred from imposing a significant tax generating sizable revenue for the provincial exchequer. The federal government is collecting all taxes which are later on transferred to the provinces. The share of the federal revenue is around 95 per cent, mostly transfers from the central government or share from the divisible pool of central resources. In case of transfer of resources, all deductions are made at source.

Interestingly, there were outstanding dues of the Balochistan government on Wapda for supplying natural gas to its power-houses, the central government refused to deduct the outstanding dues of Balochistan at source from the revenue transfer of Wapda. But in case of electricity bills, debt-servicing or other deductions are made at source in case of transfer of resources to the Balochistan government.

In case of provincial taxes, the provincial government revenue is based on property tax and motor vehicle tax. Income tax on agriculture is negligible and the government is collecting more tax on advertisements published in newspapers in Balochistan than the income tax of feudal lords and huge landowners dominating the politics of Balochistan or the country.

The provincial government is handicapped in terms of developing a tax culture or creating reliable tax collecting machinery and is heavily depending on the central government to collect all the taxes, deduct collection charges that are exorbitant by all standards, and transfer it to the provincial government.

There is no plan to tap the revenue for the provincial government by mobilising resources and motivating the people to pay taxes for meeting the expenditure of the government or accelerating the pace of economic development by improving services, quality of life, quality of available manpower and building the basic infrastructure for development.

The federal list of taxes include: tax on income; capital value tax; customs duty; sales tax; GST (central excise mode); federal excise duty and royalty; federal GST (2.5 per cent) and workers welfare tax.

The provincial taxes are: urban immovable property tax; transfer of property tax (registration fee); land revenue; tax on professional trades and callings; provincial excise; stamp duty.

The biggest collection is from the provincial excise and the government is collecting over Rs248 million per annum at the moment. The Islamic alliance in the provincial coalition is mounting pressure on the government to do away with this revenue— Rs248 million a year— in place like Balochistan. Recently, the motor vehicle tax has surpassed the provincial excise and now the yearly collection is around Rs.264 million.

These taxes are followed by stamp duty around Rs160 million, land revenue Rs.58 million and urban immovable property Rs45 million.

Off and on, government leaders from Balochistan are making visits to Islamabad seeking more resources and more funds to meet the revenue expenditure of the administration and also to finance the modest public sector development programme.

They had meetings with the president, prime minister and others seeking their intervention in getting more resources. The prime minister once told the chief minister to widen the tax base and if Balochistan add Rs1 billion to its provincial revenue, the central government would provide Rs2 billion in addition.

It was the challenge for the provincial government to boost its revenues. According to informed sources the provincial government has proposed to restructure the taxation base and widen it substantially. The revenue of the province is expected to double during the next fiscal year from Rs1.2 billion to Rs2.5 billion, official sources said.

“We are making efforts to increase the provincial revenue,” a senior official of the finance department said and added that the department had succeeded to some extent in enhancing the resources by adopting various measures and had recovered Rs570 million from the federal government.

The provincial government spent this amount on early construction of the Bolan Medical Collage Complex, which was a federal government project, but Islamabad did not return back this money. “In routine checking we detected this wrong payment and took up the issue with Islamabad for recovery of this huge amount,” he told Dawn.

Independent economists here believe that a billion or two will not help solve the problem of pre-dated backwardness of Balochistan.

Balochistan has a huge landmass and a small population and it is doubly disadvantaged to retain pre-dated poverty, hunger, backwardness and illiteracy, Professor Siddiq Ahmed Khan, an independent economist, stated.

The president of Balochistan Chamber of Commerce and Industry (BCCI), Sadiqullah Khan Kakar, was also in favour of increasing provincial taxes. He was of the view that without boosting industry in the province the revenue could not be increased.

“In my opinion, industry can stable the economy of the province and it would help in widening the tax base,” Mr Kakar said. He said that Punjab was generating a lot of revenue by establishing small and big industry. “Punjab’s revenue is around Rs50 billion,” he said.

Another independent economist and president of Balochistan Economic Forum Sardar Shaukat Aziz Popalzai said that the tax base could be increased by exploiting natural resources. As Balochistan is rich in natural resources and government should provide incentives and facilities to the people for utilizing these resources to generate revenue.

Sardar Popalzai said that abolishing taxes would make Balochistan more dependent on Islamabad. “Tax holiday given in Balochistan did not help to develop industry. The investors abandoned their units in Hub and other areas after 10 years’ tax holiday,” he said and added that the government should increase local tax on mineral.

However, Balochistan Traders Organisation president Mohammad Rahim Kakar holds a different opinion regarding provincial taxes. He said the government should not impose new taxes on poor people who are already facing price-hike and increase in utility bills. He said that government should promote tax culture by brining big landlords and others into the tax net.

 

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Sunday May 21, 2006

ISLAMABAD: Chairman Senate Mohammedmian Soomro underlined the need for using advancements in Information Technology for promotion of national unity, tolerance and enlightened moderation and spread of modern knowledge.
He was speaking as chief guest at prize distribution ceremony of the All Pakistan Website Development Competition "Know My Pakistan" organized by National University of Modern Languages (NUML) here.

He said we are living in the age of globalization which has brought more competition and more challenges for us and called upon the youth to strive hard to excel at the global level. He said that it is matter of pride for us that there was great talent and enthusiasm among the youth of Pakistan to compete at any level.

Mr. Soomro said Internet offers limitless opportunities and has surpassed geographical barriers and made acquisition of modern knowledge easy and a cost-effective phenomenon. Terming students as the asset of the nation he asked them to work for creating awareness through Internet & other means of Information Technology.

Earlier, in his welcome address, Rector NUML Dr Aziz Ahmed Khan said that the students of today will be the custodians of the nation tomorrow. He said that the aim of this website development competition was to promote IT education and awareness about Pakistan.

He said that students of Matric,F.A.,F.Sc and A/O Level were eligible to take part in the competition. Dr. Aziz said that out of 108 entries, 48 qualified for the competition. Later, the chief guest distributed prizes among the winners of completion.

 

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Sunday May 21, 2006

ISLAMABAD: Foreign assistance and administrator of USAID Randall L. Tobias has said that the successful devolution process at the district level in Pakistan will help ensure the high quality health services for the people would provide more than $ 1.5 billion for the development projects.
He stated this during the visit at rural health center Mandra and ambassador to Pakistan Ryan C. Crooker was present at the occasion.

He noted the programme ’PAMAN" launched by USAID would help to raise awareness about the problems of mothers and the new borns and added that the women are hesitant to talk the stranger about their problems.

"This programme will result in giving them awareness to address their problems," he said.

He also acknowledged the importance of the district managers and said that they were the vanguard of district administrators that would ultimately make the devolution process succeed in Pakistan.

"As responsibility and authority decentralized to the district level, you will be able to ensure efficient high quality health services for the people served by Mandra RHC and for all communities in Rawalpindi," he said while addressing the district managers.

He maintained that the USA, through USAID, would provide more than $ 1.5 billion for the development projects to Pakistan over the next five years to improve education, health, governance and economic growth in the country.

"In addition, the United States has pledged a total of $ 510 million in earthquake relief and reconstruction efforts to assist the people of Pakistan and support Pakistan government efforts," he added.

 

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ON BOARD PM'S AIRCRAFT (updated on: May 22, 2006, 12:30 PST): Prime Minister Shaukat Aziz on Monday said his four-nation visit has achieved the desired objectives of providing access to non-traditional markets, joint ventures between the private sectors and identification of new areas of co-operation with Africa and Europe.

The major accomplishment, however, has been the positive change in perceptions about Pakistan and there is now a better understanding of its status and position on global issues," Prime Minister Shaukat Aziz told the accompanying media team at the conclusion of his visit to Greece, Morocco, Libya and Egypt.

Prime Minister Shaukat Aziz in his weeklong visit has had an extensive interaction with the leaders of the four countries, besides number of others who were attending the World Economic Forum summit on Middle East in Egypt.

Prime Minister during his meetings with the leaders discussed the situation in Iran, Iraq, Afghanistan and Palestine. He apprised them of Pakistan's position on those major international issues, nuclear non-proliferation and the need of resolving disputes peacefully through talks.

He also spoke of the Composite Dialogue Process with India, and Pakistan's desire to seek a peaceful resolution of all outstanding disputes between both the countries. He said there was a clear understanding of Pakistan's position and the leaders appreciated country's quest for lasting peace in the region.

Aziz during his discussions also called for an inter civilisation, inter cultural and inter faith harmony and for a dialogue between people of different faiths to achieve greater harmony and understanding. He dismissed any linkage of Islam with terrorism and said that on the contrary the religion spoke of tolerance, brotherhood and peace.

The large business delegation and several ministers who accompanied the Prime Minister held several meetings with their counterparts in the four countries. The Chambers of Commerce of Pakistan inked agreements for increasing co-operation between the private sectors with Greece and Libya.

Prime Minister's visit to Libya, Morocco and Egypt was part of the government's initiative to strengthen relations with African States and explore fresh avenues of bilateral co-operation particularly in economic and trade sectors.

The visit, Aziz said also helped revive the Joint Ministerial Commissions with Greece, Libya and Morocco that were lying dormant for years. He said there was much appreciation of the success of the economic reforms Pakistan had undertaken over the years.

He said leaders of all the four countries noted and praised Pakistan for the remarkable economic turnaround and evinced interest in emulating the Pakistan experience. They also sought Pakistan's assistance for improvement of their banking sectors.

He said in his visit to Greece, the first by any Pakistani head of the Government, there was a visible change in perceptions and the country now viewed Pakistan more favourably.

"The change in perceptions will lead to an overall improvement in ties and increased co-operation on many new areas," he added.

The Prime Minister said Morocco had already signed Free Trade Agreement with the United States and talks were underway with Pakistan for an agreement on Preferential Trade Agreement (PTA). He added that in the presence of PTA with Greece, Pakistani exporters and manufacturers could gain duty free access to the US markets through Greece.

During Prime Minister's visit three agreements were signed for co-operation in industrial sector, avoidance of double taxation and culture, and vowed to accelerate the pace of talks on the Preferential Trade Agreement to increase the quantum of trade between the two countries.

The Prime Minister also impressed upon the Moroccan leadership for speeding up the work on PTA.

He said Pakistan had also sought assistance from Morocco to improve its tourism sector. He said the country needed to gain from the Moroccan experience, which received millions of visitors from across the world.

The Prime Minister said that with the opening up of Libyan economy there was a vast scope for joint ventures between the private sectors as many new mega projects were being opened. He also discussed export of manpower from Pakistan to Libya, besides co-operation in defence, security and energy sectors.

He said in his meetings with the Leader of Revolution Colonel Qaddafi and his Libyan counterpart they discussed ways to increase co-operation in all areas and said Pakistan had offered its expertise and manpower for building portions of Railways tracks and signals.

Aziz in his meetings with the Egyptian leaders discussed co-operation in agriculture and tourism and said the private sectors of the two countries would further increase interaction. He said that the investors from both the countries already were working on several projects in Pakistan and Egypt.

The Prime Minister also had an extensive interaction with local media and was most sought after by major newspapers, television networks and wireless services.

Prime Minister also addressed Pakistani communities at Greece and Libya and urged them to work hard with a commitment and to bring a good name to their country.

During the talk the Prime Minister was accompanied by member of his entourage including Minister for Railways Sheikh Rashid Ahmed, Minister for Ports and Shipping Babar Khan Ghouri, Minister for Science and Technology Nouraiz Shakoor, Minister for Privatisation Zahid Hamid, Ministers of State for Economic Affairs Hina Rabbani Khar, Foreign Affairs Khusro Bakhtiar and Industries Hamid Yar Hiraj, besides MNAs and businessmen.

 

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KARACHI (May 22 2006): President Pervez Musharraf said here on Sunday that now when the country's economy has stabilised on strong footing it was now poised to focus on three important issues, viz, poverty alleviation, jobs creation, and control on inflation.

"I am going to give my 'Vision Pakistan' in an address to the nation soon," the President declared amid big applause while inaugurating the Rs 5 billion K-III additional 100-MGD water supply project for Karachi at an impressive ceremony at Dhabeji Pumping Station near here.

The President recalled that there was a time when there used to be only Rs 92 to Rs 95 billion in PSDP, which has now grown to Rs 250 billion, which would be spent on mega development projects to lead the people of Pakistan to the path of progress and prosperity.

Musharraf pointed out that besides poverty alleviation, jobs creation and control on inflation, which would be focused under his 'Vision Pakistan' by December 2007, each house would be receiving electricity, safe drinking water, and gas.

"I can say with great pride today that the projects, which I had launched in 2000 are now reaching the stage of completion, and their fruits are starting to reach the people at the grassroots level," he said.

The President said that to achieve this objective, a strategy was formulated which was not an easy task, but he worked 15-16 hours daily, whereafter he could know the real problem on which work was started and their fruits were now ripening.

He said, "By December 2007, each village having ten houses will get electricity, and this is my promise to the nation."

The President referred to the supply of unhygienic and contaminated water to the people in Hyderabad and other areas of Sindh. He said this had happened because of disposal of effluent into Manchar Lake.

He said that when the people raised hue and cry, this polluted water was thrown into River Indus during period 1998-1999.

The President said to rid the people of such tragedies, the present government initiated projects of RBOD and LBOD. He announced that by December 2007, with the co-operation of federal, provincial and district governments, water filtration plants would be installed in villages having population of 1000, whereafter every citizen would get mineral-like water.

Musharraf said that in areas where gas cannot be carried through pipes, gas tanks would be installed and filled through Bowsers for onward supply to people.

Similarly, he said, equal attention would be paid to the provision of education and health facilities.

He said that when the rural areas of Sindh would get abundant quantity of gas and electricity, they would enjoy prosperity, "and this is what our future is".

He said, "My 'Vision Pakistan' will take the country forward and make prosperity reach the grassroots level, and I will do that."

The President said that he was very delighted for inaugurating the 100-MGD K-III project, which has been completed three months ahead of schedule.

He congratulated Sindh Governor Dr Ishratul Ibad, Chief Minister Dr Arbab Ghulam Rahim, and Karachi City Nazim Mustafa Kamal and those associated with the project.

The President also congratulated the people of Karachi who, he said, had started receiving "this water from today". The President noted with delight that the City Government had plugged leakages resulting in saving 33 percent of water wastage and now rooting out the tanker mafia which was exploiting the situation and minting money due to water shortage and drawing water through these leakages.

He described the K-III project an ideal example of co-operation between federal, provincial and city governments in its implementation.

The President, referring to the address by Nazim Mustafa Kamal assured that whatever the requirements of Karachi would be met.

He said that earlier his plan was to meet the City Nazim and hold a meeting with him at his office to know about his requirements, but he informed the audience that he had changed his schedule of inaugurating this project which was on May 23 and decided to be here on Sunday in view of the Nazim's important visit to China "for which he is leaving tonight".

He said that he did not want the Nazim to delay his visit to China because of inauguration of this project.

The President said that on his next visit to Karachi he would meet the Nazim at his office and whatever federal assistance would be required for Karachi would be provided.

He pointed out that the overall federal assistance for mega projects of Karachi, including Lyari Expressway, Northern By-pass and K-III project stood at Rs 20 billion.

"I want improvement in Karachi, as Karachi and Lahore are two main cities of Pakistan; and I want to see that both cities should develop," he said.

Musharraf made a special reference to a number of mega projects launched by him including Gwadar Port started in the year 2001 and said now it is going to be an international port.

The President said that after working on poverty alleviation, jobs creation and inflation control, the work at micro level to strengthen the hands of district governments besides construction of farm to market roads along with promotion of education, lining of canals and construction of watercourses would b taken up.

Speaking on the occasion, Governor Ishratul Ibad thanked the President for inaugurating this mega project and said he is witness to the fact that on many occasions during the last 2-3 years, whenever problems came in the way, immediate response was received from the President to have them removed.

He said that every one would orally say that Karachi is the heart of Pakistan, but it was President Pervez Musharraf who practically proved it.

Chief Minister Dr Arbab Ghulam Rahim also thanked the President for sparing time from his busy schedule to inaugurate this most important project of Karachi and said the credit for it goes to the President who took personal interest in the project and kept monitoring it till its completion.

Arbab pointed out that Musharraf is taking personal interest in all the projects for Karachi and said he is keen for fast national progress, particularly industrialisation, and prosperity of people. The chief minister appealed to the President on behalf of people to seek re-election and continue working for the cause of Pakistan and Muslim Ummah.

Also present on the occasion were federal and provincial ministers, Corps Commander Lt General Ahsan Hayat, KWSB Managing Director Brigadier Iftekhar Haider, advisers, senior officials of Sindh and City governments.

 

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KARACHI (May 22 2006): The year 2006 brings a major milestone in the relationship. The first Kuwait Petroleum Corporation (KPC) tanker "Stamenis" arrived at Keamari port Karachi on the 10th of March 1976.

This event marked the beginning of a dependable and durable relationship between KPC and the government of Pakistan. KPC has maintained uninterrupted supplies of finished petroleum products, which included high-speed diesel oil (gas oil), kerosene oil and furnace oil (fuel oil).

The KPC commitment to Pakistan reached unmatched heights when during a major turmoil in the shape of war (Iran-Iraq) around Arabian Gulf, the supplies to Pakistan were never delayed. The corporation assigned a fleet of their tankers under flags of other countries to meet the committed volumes.

The periodic supply contracts are reviewed on a biannual basis to ensure that Pakistan continues to receive the required finished products at the most competitive rates.

In order to cope with the increasing demand of the Middle Distillates in the country, KPC participated in building a sizeable tankage at Parco - Korangi facility, thus bringing about an improvement in the overall ullage situation of the country.

In 2001, deregulation policy was implemented by the government of Pakistan. At their request, the supply contract was assigned to Pakistan State Oil Company Ltd (PSO). KPC is happy with this new and strategic partnership. Their vast marketing network and efficient handling indeed justifies the role of an industry leader.

Kuwait Petroleum Corporation reaffirms its pledge to continue in the service of Pakistan through uninterrupted supplies of finished products - helping keep homes, agriculture & transport running smoothly, reflecting the lasting trust between the brotherly people of Kuwait and Pakistan.

 

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ISLAMABAD (May 22 2006): Federal Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon has said that the government has evolved a programme to provide natural gas to the most parts of the country by the end of next year.

Most parts of the country would be provided natural gas by the end of next year to meet fast growing domestic and industrial energy needs of the country, under a road map approved by President Pervez Musharraf.

Minister for Petroleum and Natural Resources in an interview, said for Pakistan's fast expanding economy and rapid industrial and agricultural growth drilling and exploration activities have been expanded.

He said energy would also be imported from the regional countries including Iran, Turkmenistan and Qatar.

He said about fifteen foreign companies have invested substantially in exploration activities supplemented by public sector companies.

About the Iran-Pakistan-India gas pipeline project Amanullah said the Petroleum Ministries of the three countries are in the process of finalising the multi billion dollar project.

 

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KARACHI (May 22 2006): The vast coal reserves in Sindh would be utilised to produce electricity and many such power plants would be set up in next five years, said Sindh Chief Minister Dr Arbab Ghulam Rahim here on Sunday.

Presiding over a high-level meeting at the Chief Minister's House here to discuss the coming budget, he said that the province of Sindh, by the grace of Allah, was rich in natural sources, which would be harnessed to improve the national economy. He said that coal-based power plants would help ending electricity shortage. He said that royalty of natural resources would strengthen economy of the province and help in eliminating poverty.

He said that some European companies were setting up oil refineries in Sindh near Port Qasim and Dhabeji. He said that European investors were also keen to set up power plants at Jamshoro and Keti Bander.

He said illegal encroachments from Karachi and Super Highway would be removed. The meeting was told that 25,000 acres of government land at the Super Highway had been recovered from land grabbers, while bogus allotment of 86,000 acres of land in Thatta had been cancelled.

Dr Arbab stressed on improving standard of education in the province. He asked officials to conduct survey of small villages that were still without primary schools.

He said that in Sindh some 2 million children were presently not going to schools. He asked the officials to take steps to improve condition of 41,215 government primary schools in Sindh. He asked them to increase the number of middle schools. He said that dream of a prosperous Sindh could not be materialised till improving standard of education.

The Sindh chief minister said that hefty fees of private schools were a permanent headache for parents. He asked education department officials to set up a joint committee of parents and educationalists to keep a close eye on fees of private schools. He said that model English schools would be opened in each Taluka of the province and funds for them would be allocated in the coming budget. He asked to prepare a plan for capacity building of teachers of the government schools.

He said that if the EDOs education of all 23 districts of Sindh took sincere efforts there was no reason why education standard in Sindh could not be raised. He said that by improving standard of 45,487 government primary, middle and high schools in the province, the future of Sindh could be brightened.

He said that stern action must be taken against use of unfair means in examinations. He said that he wanted total elimination of 'copy culture' from the province.

Dr Arbab said that laying a network of uplift projects in the whole province was his mission. He directed officials to earmark funds for setting up model villages for fishermen at Manchar Lake, Keenjhar Lake and Zero Point in Badin. He said that funds should also be tagged in the coming budgets for purchase of small launches and boats for fishermen. He announced that a bridge would be constructed over the Indus River between Thatta and Tando Muhammad Khan to provide better travel facilities to area people.

The meeting was attended by Sindh chief secretary, senior member board of revenue, additional chief secretary (planning and development), secretaries of irrigation, agriculture, education, mineral development, local bodies, livestock, health and other departments.