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$100 million Swiss ethanol plant project in jeopardy

KARACHI (February 16 2008): A Swiss company's $100 million plan for setting up maize-based ethanol generation plant near Port Qasim has been jeopardised due to poor law and order situation in the country.

Sources in Sindh Environment and Alternative Energy Department told Business Recorder on Friday that the poor law and order and political instability have put the project in doldrums as the company is reluctant to invest in the country in present scenario.

Without naming the Swiss firm, sources said that a high-level delegation of the firm has called on Mohammadmian Soomro some six months back in Islamabad, when he was Senate Chairman to brief him about the project. Soomro had asked the delegation to work jointly with Board of Investment and Planning Commission to remove the financial and legal hitches in the plan.

Later, the Alternative Energy Development Board was asked to see the possibility of setting up the plant near Port Qasim, the sources said, adding that the AEDB had also started feasibility study of the project in collaboration with Swiss firm.

Sources said the firm was also intending to invest in large-scale projects in oil and gas sector. Sindh Alternative Energy department had also announced setting up of a $110 million ethanol plant on which AEDB was working but this project was also in doldrums owing to indifference of the officials concerned.

Business Recorder [Pakistan's First Financial Daily]
 
'New government should give priority to economic development'

KARACHI (February 16 2008): The speakers in the meeting of Shura Hamdard, Karachi chapter has urged the new democratic government to be formed after the 18th February Elections to put sustainable economic development, distribution of justice, decentralisation and self-reliance in its priority list.

The meeting, held on Thursday, February 14, 2008 was presided over by the Chief Justice, Federal Shariat Court, Justice Haziqul Khairi at a local hotel. The President, Hamdard Foundation Pakistan, Sadia Rashid said that the new democratic government should concentrate on the issues of water, electricity and construction of dams as our industry and agriculture cannot develop without water and energy and consequently the country would have to rely on foreign aid and assistance.

The Rector, Islamic University Islamabad, Dr Manzoor Ahmed, said that the government that is supposed to get into power must promote the Pakistani nationalism, should also decentralise the power as it was essential to create sense of participation among the masses. Strict centralisation creates sense of deprivation among the people.

The national institutions should be strengthened to raise their value and dignity, he added. Dr Mohammed Au Siddiqui, Justice Haziqul Khairi, MA Sabzwari, Qutubuddin Aziz, Dr Syed Amjad Ali Jaffery, Shamim Kazmi, Islamuddin Aga, Dr Khalid Ikramullah Khan and Dr Naeem Qureshi also spoke. At the end of the session, Shura presented a necrology over recent deaths of Dr Anees Khurshid, Idress Ahmed Minai and Professor Dr Zakia Zeba and offered fateha.

Business Recorder [Pakistan's First Financial Daily]
 
Open track policy: Cabinet disallows foreign invesment

ISLAMABAD: No foreign investors will be allowed to benefit the Pakistan Railway’s (PR) open track policy. Only local investors could avail the benefit of this policy for running private trains on official track by making required investment.

The federal cabinet has disallowed foreign investors to use official track of PR, said Caretaker Federal Minister for Railways Mansoor Tariq while talking with Daily Times here on Saturday. However, he said not a single firm or investor showed any interest in this regard.

Earlier, the ministry of railway inked three transport agreements with Dost Steel Limited, Fatima Fertilizer Company Limited and Suraj Fertilizer Industries (Pvt) Limited. According to the agreements, PR would be able to generate Rs 470 million per annum.

Pakistan Railway’s revenue would increase to Rs 1 billion in 2010. The three companies would pay as follows: Dost Steel Limited Rs 406 million, Fatima Fertilizer Company Ltd Rs 300 million and Suraj Fertilizer Industries Rs 294 millions.

Addressing the journalists, minister said that the agreements were signed under the public private partnership programme of the government. He termed it as a step for revenue generation for PR. The government has committed to increase the PR profit by Rs 6 billion per annum.

The ministry of railway also signed an agreement with Pakistan State Oil to transport 140,000 tonnes of oil and it would provide Rs 1.40 billion to railway.

On other side the minister said PR has also stopped 11 trains across the country just to curtail the losses bore by the railway department. But none of them was passenger trains so passengers were not affected from this action of the government.

The department also decided to lease out six PR hospitals situated in different parts of the country. The department spends Rs 260 million annually by running these hospitals but they failed to provide proper medical facilities. The government, in 1997, decided to lease out all railway hospitals. In 2004, the PR has leased out a Pindi hospital He said that the hospital was leased out on wrong terms and conditions and hence was not generating any revenue for the department. He expressed a lot of reservations over the decision.

The minister informed that PR has a lot of property at prime locations. There are lucrative properties of PR in Rawalpindi on Bank Road. Some people have taken the possession of that land with the cooperation of some ministry officials. The minister said that he would send this case to NAB against three concerned officials of the railway ministry However, the minister reiterated that the government retrieved PR properties worth Rs 5.28 billion and assured to recover more soon.

Daily Times - Leading News Resource of Pakistan
 
Remittances surge by 22.44% to $3.623bn during Jul-Jan

* Amount includes $1.71m received through encashment and profit earned on FEBCs and FCBCs​

KARACHI: Pakistan received $3.623 billion as workers’ remittances in the first seven months of the current fiscal year, showing an increase of $664.05 million or 22.44 percent over the same period of the last fiscal year.

The amount includes $1.71 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs), the State Bank of Pakistan said here Saturday.

The inflow of remittances in the July-January period from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries stood at $1.025 billion, $663.67 million, $593.57 million, $539.88 million, $262.88 million and $103.18 million, respectively, as compared to $768.01 million, $552.53 million, $443.87 million, $407.36 million, $247.86 million and $85.61 million, respectively, in the July-January 2006-07 period.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the period mentioned above stood at $432.80 million as against $452.71 million in the same period last year, showing a decline of 4.39 percent.

During the last month (January 2008), Pakistani workers remitted $557.07 million, up $165.74 million or 42.35 percent when compared with $391.33 million sent home in January 2007.

The inflow of remittances into Pakistan from almost all countries of the world increased last month as compared to January 2007. According to the break up, remittances from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries stood at $151.50 million, $100.61 million, $93.24 million, $82.67 million, $35.65 million and $14.19 million, respectively, as compared to $108.74 million, $69.21 million, $46.84 million, $48.78 million, $29.19 million and $10.72 million received during January 2007.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during January 2008 amounted to $78.62 million as compared to $77.79 million during January 2007.

Daily Times - Leading News Resource of Pakistan
 
NWFP govt signs agreement for fuel exploration

PESHAWAR: The caretaker government in NWFP signed an agreement with Hungarian firm, Millennium Oil Limited (MOL), for exploration and production of oil and gas here on Saturday.

NWFP Caretaker Chief Minister Shamsul Mulk and Managing Director for Pakistan Janos Feher signed the document for acquisition agreement for the Tal Block.

“This will be the first large scale compulsory land acquisition by the provincial government,” a MOL statement said after the signing ceremony at the Chief Minister’s Secretariat. After the acquisition, the land will be leased out to MOL Pakistan for 30 years.

“Most of the land will be used for laying a gathering system in the Tal Block that is a major natural gas discovery in the province,” the statement added.

Janos Feher said that with the agreement the company would be able to complete development and production phase of Manzalai field according to the schedule and to provide natural gas and 4,000 barrels of condensate at the first quarter of next year.

Daily Times - Leading News Resource of Pakistan
 
‘Infrastructure in industrial areas top priority’

KARACHI: Caretaker Sindh Minister for Industries, Labor, Transport, Commerce and Cooperation Arif Ali Khan Abbasi has said the development of infrastructure in industrial area is being attached top priority so as to accelerate the pace industrialiasation.

This he said while presiding over a meeting of Sindh Industrial Infrastructure Development Board (SIIDB) at his office here on Saturday. Secretary, Industries, Labor and Transport Rasool Bux Phulpoto was also present on the occasion.

Provincial minister said that keeping in view the importance of sound infrastructure in industrial zones, four independent management companies have been formed in Korangi, Landhi, Federal B Area and North Karachi with an amount of Rs 250 million. KITE, LITE, FITE and NITE have been assigned the responsibility of developing the infrastructure in their respective jurisdiction, he added. The proposal of KITE regarding strengthening of security in Korangi Industrial Area also came under discussion in the meeting.

Daily Times - Leading News Resource of Pakistan
 
PJBF wants 'scheduled' uplift works in Karachi

KARACHI (February 17 2008): The City District Government Karachi (CDGK) should introduce a "schedule" based system to undertake "strictly supervised" developmental projects in the metropolis.

"A schedule should be announced before starting any project... this will not only help ensure transparency but also allow the people to be aware of and ready for the new development in their area," said Abdul Kader Jaffer, President Pakistan Japan Business Forum (PJBF).

He was addressing members of the executive committee of PJBF here at a local hotel on Saturday. The city nazim, who was the chief guest on the occasion, could not attend the event due to illness, said the City Naib Nazim Nasreen Jalil who replaced the nazim as a chief guest.

"Roads are dug up and left incomplete which caused drainage problems for the area people... so strict supervision of the developmental projects should be ensured," the PJBF president maintained.

He said the city government had changed the face of Karachi in terms of development but a lots of works and problems were still there to be addressed to make the city a problem-free place. He said problems like pollution and pressure horns were still unabated, as laws restricting these problems were not being implemented properly.

The PJBF chief also proposed that a "distinguished but non-political" person should accompany the union council nazims as an adviser on the development affairs. Lauding the CDGK for devising the Master Plan 2020 for Karachi, the PJBF chief said the document was the need of the hour and should have been prepared at least 25 years ago.

The PJBF president also offered his help in convincing the Japanese government for granting loan to the city government for infrastructure development of the metropolis. "Japan is interested to make investments in infrastructure development projects like circular railway project etc in Karachi," he said.

In her speech, the Naib City Nazim Nasreen Jalil acknowledged that city of the 16 million people was still stuck with lots of problems as the previous city government had neglected development of Karachi. "All done by the CDGK is like a drop of water in the ocean and we have to do more to develop the previously neglected city," she added.

The deputy nazim welcomed the PJBF's proposals saying that the suggestions would be taken into account on the appropriate forum. "The ideas of schedule, transparency and advisors to the UC nazims sound good and we would take them into considerations," assured Nasreen.

She said some issues like unity of command were halting development of the city, which was being administered by 13 land owning federal and private agencies. "A Supreme Court verdict on transfer of civilian areas to the CDGK is a good omen in this regard" she said.

She said the metropolis had a five-percent growth rate in terms of migration. "People migrate to Karachi and treat it like a transit way and never care for its future," lamented the naib nazim.

She said out of a Rs 45 billion's fiscal budget the CDGK had allocated Rs 25 billion for developmental work in the city. Around 70 percent work on sewerage lines was completed while water was made available for the far-flung areas like Lyari, Korangi, Orangi, Site etc.

Later, the Pakistani and Japanese businessmen questioned the city nazim on various problems related to a bad traffic and transportation system, lack of government's attention towards human development, non-availability of water, maintenance of the historical heritage, dilapidated condition of Quaidabad bridge etc when the latter invited queries from the gathering.

The naib nazim urged Japanese businessmen to extend technical help to Pakistan on competitive rates for development of the friendly country. Senior Vice President of PJBF Masaharu Domichi gave a vote of thanks to the chief guest, who was also given a memento at the end of meeting.

Business Recorder [Pakistan's First Financial Daily]
 
Availability of skilled human resources key challenge for Pakistan: World Bank study

FAISALABAD (February 17 2008): The key challenge for Pakistan is the availability of adequately qualified and skilled human resources in infrastructure sector, which are essential for sustained growth and development of the capacity of construction industry to undertake large volumes of work with acceptable standards of quality workmanship, said a World Bank study.

According to the report of 'South Asia Sustainable Development Unit, (SASSD), South Asia Region of World Bank, there is need to train a very large number of engineers, junior engineers, and skilled and administrative staff. To work out the cost of training at different levels within Pakistan and abroad seems premature at this stage. It can be a lengthy and complex exercise. At this stage, a simplified way would be to relate cost of training to the size of the infrastructure program at hand.

The World Bank study said that the aggregate size of the program for the 2005-2010 period is approximately Rs 1,400 billion, and a half percent of this program will be Rs 7 billion, or approximately $117 million. If funds are allocated according to this low percentage figure, it would work out to be almost $23 million annually for the next 5 years.

This figure will give a start to the training program and can be modified as it develops. Investment will promote excellence in education and training, and trained manpower would produce results far in excess of the investment.

A detailed and comprehensive program of education and training will also be necessary in consultation with the stakeholders. Lack of trained manpower in Pakistan has been the result of years of neglect. This opportunity should be cashed with a sense of urgency and immediacy. Trained manpower available before the planned infrastructure program gets fully launched will be of great benefit, the World Bank study said.

According to the study, shortage of professional and adequately skilled personnel in the industry (among clients, contractors and consultants) in developing countries both in the form of management and for field operations has been widely cited across the reviewed literature.

Largely, WB study stated, non-professional managers and insufficiently qualified technical personnel head contracting firms in Pakistan. Even though Pakistan Engineering Council (PEC) bylaws make it mandatory to employ graduates, most contractors fail to do so.

This imposes severe limitations on capacity as well as the quality of work. Apart from technical weaknesses they also lack skills for risk management, marketing, financial control, work organisation and quality control. The above-mentioned contractors' inadequacies are further compounded by the dearth of trained operators of machinery, professional engineers and skilled tradesmen.

For delivering the MTDF planned infrastructure, the WB study stated that the professionals and technical staff required is in thousands. The government needs to take steps to enlarge the available pool of skilled HR at the outset, and concurrently increase the level of skills.

To enlarge the pool, appropriate skilled personnel can be imported from regional countries to fill the numbers and skill gap. This could be a temporary stopgap measure. However, keeping in mind the wage differentials, this strategy will be more costly for contractors and consultants when compared with hiring locally.

Another possibility is to reverse the trend of brain drain, which could potentially increase the supply of locally available engineers by a thousand and technical staff by 3,000 or more, each year.

The most viable option is to increase enrolment of students in higher education and technical and vocations institutes leading to professional, vocational and administrative careers in the construction sector and at the same time, arresting and reversing the brain drain by providing better employment opportunities, increasing local salaries and benefits.

Besides restructuring the local salaries, WB study said, one option in this respect would be to put in place policies which offer Pakistanis' with foreign experience wages equivalent to regional countries, such as the UAE, and those Pakistanis who have a foreign nationality, expatriate wages should be considered.

Ultimately, higher salaries and other benefits will have to be the first step in attracting HR into the industry. Once the incentives to enter the industry are in place, the recommendations made pertaining to training and enhancing skills can be used to upgrade the skills of fresh graduates and existing engineers and technical staff to implement large infrastructure projects in Pakistan.

To increase the skill sets, training of current employees in the construction sector should be conducted both within Pakistan and abroad. Foreign training should be considered for specialised fields, where it is not available in the country, and for providing broader training in fields where more experienced personnel can benefit the most. Distance learning programs can also be adopted for such purposes, said the WB study.

At present, some of the foreign consultants, contractors working in Pakistan can train within their organisations, in or out of Pakistan, as part of their contract, and World Bank, USAID, ILO, ADB, Japanese Assistance Programme and others can help with placements, with a combination of university courses combined with field training.

Within Pakistan, WB study pointed out, engineering universities and other professional schools can offer training programs geared towards meeting the needs of this sector and enlarging the pool over the long-term. Where teachers are not available, foreign staff can be recruited and training of trainers programs be started.

Programs in training institutes like NAVTEC, TEVTA, CMTI and others should be expanded and established in all provinces for developing diploma holders and skilled workers. Existing laboratory facilities at Wapda, Road Research Institute Punjab, NTRC and others could be geared for training of technicians at a mass scale.

Similarly, skilled equipment operators and mechanics can be trained with the collaboration of equipment manufacturers and suppliers as was done in China and Malaysia. In addition, the example of the HR Development Fund in Malaysia, which provides for industry demand-driven training, could be emulated to promote skills training.

All these measures will have to be taken to enhance the manpower pool and upgrade the skills on an emergent basis. The WB study said that the quality of engineering and technical education has to be revamped and made applicable to the needs of the construction sector.

It would be safe to say that training is required almost in all fields and at all levels. To quote only one area--highways--consultants need to be trained and equipped in these subjects:

- Survey of alignment with modern methods of survey including aerial and ground survey with the use of modern equipment: Correct alignment can save large sums of money by staking out the most economical routes, identifying soils, locating construction materials and identifying bridge locations, estimating costs before getting into detailed field surveys.

- Geometric design of roads and highways: For ordinary roads or high speed highways, CAD can help geometric design. This ultimately helps safe and functional utility in short-time frame when coupled with advanced survey tools. Some software offers design of allied structure, drainage and quantity calculation.

- Soil analysis and structural design of pavement: It offers identifying soils, correct and economical design of pavements for durability, coupled with field control, material's testing. It can avoid costly mistakes.

- Field training of maintaining and using construction equipment for soil transportation, compaction and handling of various materials during construction.

- Concrete bridges and culverts at design as well as construction planning and supervision stage. Prefabrication, use of prestressed design and industrialised construction can reduce time, cost and improve quality. - Project planning helps consultants, contractor and client's precious time and increases their profits.

Similar, training is required almost in all other fields, be these transmission towers or design and construction of dams. Consultation with stakeholders and reviews of the nature of future projects will determine what exactly is needed.

Fresh graduates should be required to undertake training prior to getting accreditation from PEC and mid-level career exams could be introduced to cultivate a culture of learning.

Motivation could be provided through an appropriate incentives program designed in consultation with the trade associations, regulatory bodies and client agencies. In tackling the human resource problem it is critical to focus not just only on the human resources requirements of consultants and contractors but of the client as well. The fastest way to improve the quality of infrastructure output is from the demand side.

If the client specifies a higher quality of work the standards of infrastructure services and outputs will certainly be improved. The government with its dual role of a client and policy maker is the most effective agent of change but in order for this to happen, managerial and professional capacity of the client has to be enhanced.

Specialised training to appropriate personnel in relevant areas and exposure to international best practices and successful infrastructure experiences in the developed and developing world should be provided.

To provide an incentive for learning, one option could be to link the promotion of civil servant technocrats to the next higher grade with the completion of prescribed technical continuing education and project management courses and public expenditure management training. Revising the remuneration scales and perhaps monetising the perks of civil servants could also prove to be an incentive to attract better qualified staff, the study said.

Business Recorder [Pakistan's First Financial Daily]
 
Setting up of cement plant by Qatari company: Red tapism, poor law & order threaten $225 million project

KARACHI (February 17 2008): A Qatari company's $225 million plan for setting up a cement plant near Dhabeji is in jeopardy owing to the inordinate delay in process of legal documentation for the project by the concerned official and deteriorating law and order situation in the country.

Official sources in Planning and Development department told Business Recorder on Saturday that delaying tactics were being used in processing the legal documents by concerned officials.

Moreover, they said, the poor law and order situation has threatened the project as the company seemed disinterested to invest in the current scenario of law and order. However, the representatives of the firm have assured the government that their investment plan would not be affected by poor law and order situation, they said.

Without naming the Qatar firm, the sources said that Sindh government received an Expression of Interest some ten months back for investing in setting up cement plant at Dhabeji. A high-level delegation of the firm has called on the then Chief Minister Sindh Dr Arbab Ghulam Rahim in March 2007 at Islamabad, where Arbab had asked the delegation to work jointly with Board of Investment and Planning Commission to eliminate the financial and legal hurdles in the plan.

Arbab also assured the company to make the requisite land available and agreed to grant four hundred acres of land for 99 years at the rate of Rs 0.25 million per acre at undeveloped Dhabeji near Port Qasim.

To finalise the matter, two meetings took place in office of Additional Chief Secretary and General Administration Department, which were attended by the secretaries of Law Department, Mines and Mineral Development Department and Land Utilisation Department to finalise a draft lease deed.

Thereafter, the government decided to provide 400 acres land which would also earn Rs 100 million revenue for provincial exchequer besides bringing an investment of about $225 billion but this project was in doldrums owing to indifferent attitude of the concerned official toward finalisation of the legal process, the sources added.

Business Recorder [Pakistan's First Financial Daily]
 
'Significant share of US companies in IT field expected'

ISLAMABAD (February 17 2008): Pakistan is expected to acquire a significant share of American companies outsourcing agreements in the field of Information Technology as a number of companies have shown interest in tapping the rich potential of Pakistani IT industry.

"Several renowned companies in USA, during the recent series of meetings with a visiting Pakistani delegation, expressed their willingness to outsource various projects to Pakistani companies," spokesman of Pakistan Software Export Board (PSEB) disclosed while talking to the media here on Saturday.

The spokesman hoped that outsourcing projects from USA companies to Pakistan would provide job opportunities for local skilled professionals, boost IT exports, thus earning foreign exchange.

The Pakistan delegation, led by PSEB Managing Director Yusuf Hussain, held detailed meetings with leading corporations, trade chambers, academia and IT companies at Houston, Austin, Polo Alto and Chicago, reputed to be the hub of IT business.

"These meeting have generated valuable business leads, which are likely to transform into successful business ventures", he mentioned. He stated that the USA companies that are considering outsourcing IT projects to Pakistan are Yahoo, J.P. Morgan, Motorola, Sun Microsystems, Continental Airlines, Chase Bank, Houston IT Department, Prime Communications, American International University Houston, Cyber Tex, Cadence and Goldman Sachs.

Some American universities and institutes of learning have also shown interest in developing a student exchange programme with Pakistan and to open training centres in the country, which is an encouraging sign for the local IT industry.

The visit of Pakistan IT delegation was arranged by PSEB in collaboration with Texas Trade Council (TTC), Organisation of Pakistani Entrepreneurs of North America (Open) and Embassy of Pakistan in the USA. The Pakistani IT companies which participated in these sessions and special events included Alp-BSM, CTO 24/7, Invaterra, LMKR, Netpace, Palmchip Pakistan, Progressive Systems, Server4Sale and Xorlogics Inc.

The Pakistani delegation met the Texas Secretary of State Phil Wilson and briefed him about the tremendous growth generated by the Pakistan IT sector and the investment opportunities available in the country. The delegation also attended a business networking event "Think Global, Act Local", jointly arranged by the Asian Chamber of Commerce, TTC, Asian Pacific American Heritage Association and Galleria Chamber of Commerce.

Business Recorder [Pakistan's First Financial Daily]
 
Work on $200 million IT Tower starts

KARACHI (February 17 2008): The construction of Pakistan's tallest 47-storeyed Information Technology (IT) Tower adjacent to Civic Centre started at a cost of 200 million dollars with the signing of an agreement in Kuala Lumpur on Thursday.

City Nazim Syed Mustafa Kamal signed the agreement on behalf of City Government Karachi and Datu Gochi Kon on behalf of Malaysian Construction company I. M. Technologies, a consortium of I.G.M. Investment, Jable-Ali Limited and Mall Park Limited.

The consortium will construct IT Tower in 24 months, which will have three shopping Malls of international standard, 12000 seats Call Centre, 240-room five-Star hotel, Business Centres and car parking facility for 2100 vehicles while 50,000 people would get employment here. Some 5,000 persons will get job during the construction of building while the water used in construction work will be recycled.

The agreement signing ceremony in Malaysia was largely attended, among others, by Pakistan High Commissioner Lieutenant General (Retd) Tahir Mahmood Qazi, DCO Karachi Javed Hanif, EDO Enterprise Dr Shahab Imam, Chief Controller of Buildings Rauf Akhtar Farooqui, CEO and MD I.J.M. Corporation, Datu Krishnan Tun, Director I.M. Technologies (Pakistan) Sarfraz H. Rizvi besides Malaysial federal government level secretaries, high government officials and businessmen, industrialists and members of civil society.

Addressing the ceremony Nazim Karachi Mustafa Kamal said that co-operation of Malaysian companies and investment by them in ongoing mega projects in Karachi would prove helpful in bringing the two countries closer to each other. He said that paper work on this project started one year back and today work on it was starting with signing of the agreement.

He said the importance of the project could be judged from the fact that 4000 out of 10,000 call centre seats have already booked before the start of work. He was confident that with working together, the IT complex project could be completed much before the stipulated time frame of 24 months.

He thanked the Malaysian investors for their confidence in the City Government Karachi by investing in projects like Elevated Expressway and IT Complex. He said the IT Complex would prove a unique project in the region which would give a boost to BPO industry in Pakistan.

Earlier CEO and MD IJM Corporation welcomed the Nazim Karachi and his team in Malaysia and said the IT complex would be a most modern and unique project of its kind in which an investment of 197 million dollars will be made. It will have a spacious car parking facility and 10,000 seats call centres in upper floors.

Business Recorder [Pakistan's First Financial Daily]
 
Karachi IT Towers​

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Work on $200 million IT Tower to start soon, says Kamal

KARACHI (November 29 2007): City Nazim Mustafa Kamal on Wednesday said the construction work of 47-storey IT Tower in the vicinity of Civic Center at a cost of $200 million would start within few weeks. Around 40,000 youth would get employment in the IT Tower.

Which would be the country's tallest building and would have 10,000 call centers of which 6,000 have been booked so far, the Nazim stated this, in his address, to a "Technology Showcase" event held at a local hotel.

The event was organised by the Inbox Business Technologies (IBT), an end-to-end technology solutions company, to highlight various technology-related initiatives taken by the City District Government Karachi (CDGK).

Chief Guest Mustafa Kamal described the importance of using technology to make administration of the city easier and, for the betterment of its citizens.

He said a full-scale Enterprise Resource Planning Application, Health Management and Information System (HMIS) has been introduced at the Abbasi Shaheed Hospital (ASH), city's largest public sector hospital, to ensure the availability of improved patient-care and better administrative controls.

Mustafa Kamal noted how the implementation of HMIS at ASH had increased transparency, reduced pilferage, and increased accountability of the hospital staff for the benefit of patients.

He also stressed the need for the importance of transparency at public sector hospitals through an effective reporting system. "The system would prevent misuse of medical supplies issued to the hospital, so that the truly needy could be able to get the required medicines," he added. Praising the work on Citizen Complaint Management and Information System (CCMIS), the City Nazim termed it a unique system world over.

He said using the CCMIS the citizens of Karachi are able to directly register their complaints related to KWSB, KESC and KMC etc at the city's Call Center 1339. The calls are monitored and logged by the vigilant, efficient and well-educated staffers who have been employed from the private sector to ensure timely actions on complaints, he added.

Kamal surveying progress on the Wireless Video Security and Surveillance System (WVSSS) said by using the system, live video feed from the cameras installed along the two signal-free corridors would be viewed from a central location in the city.

He said the WVSSS would help detect and prevent traffic congestion and minimise suspicious activities and street crimes in the vicinity. Elaborating the Land Management System (LMS), a land lease-related document repository,

Kamal told the seminar that how the system would help citizens identify any ambiguities in ownership of real estate, and prevent fraudulent activities and property-related disputes.

Ghias Khan, Chief Executive Officer, IBT elaborated upon usage of the HMIS to uplift the health sector with better administration of hospitals and efficient utilisation of hospital resources. "Using HMIS, world-standard healthcare best practices can be introduced in public and private sector hospitals in Pakistan," he said.

Business Recorder [Pakistan's First Financial Daily]
 
Reducing edible oil imports

EDIBLE oil is extracted from seeds of crops like rapeseed, mustard, groundnut, linseed, sunflower, soybean, sesame and canola grown in the country. However, a large quantity of edible oil is obtained from cotton seed.

The total availability of edible oil in 2005-06 was 2.905 million tons. Local production stood at 0.793 million tons which accounts for 27 per cent of the total available quantity while the remaining 73 per cent was procured through imports. During 2006-07, local production of edible oil stood at 0.855 million tons. During this period, 2.201 million tons of edible oil was imported and 0.349 million tons extracted from imported seed.

The country imports edible oil from Malaysia, Indonesia, Norway, Singapore and Argentina. Of the imported quantity, about 56 per cent is of palm oil.

Keeping in view record increase in the prices of edible oil in the world markets due to decline in world production of palm oil and soybean crops, edible oil crisis is looming large over the country. To add to this, the current year’s overall production of palm oil in South America and soybean production in some other countries, including Argentina and Brazil, has also declined significantly.

Due to rising demand and low supply, palm oil prices in the world market have shot up by $120 per ton to $1170 from $1050 per ton just within one month. Moreover, the prices of edible oil are likely to go up further which might create a crisis in the country. Similarly, in the domestic market, the prices of edible oil have gone up by Rs40 per kilogramme within one month due to the soaring prices of palm oil and soybean oil in the world market so much so that the federal government has decided to reduce taxes on edible oil to bring down its sky-rocketing prices in the open market. Presently, the country’s overall consumption of edible oil stands at three million tons, of which some 0.5 million tons is produced locally, while over 2.5 million tons is imported.

To deal with the looming edible oil crisis, stringent efforts are needed to enhance local production of edible oil by bringing more area under cultivation of oilseed crops as well as increasing per acre yield.

Our farmers mainly grow traditional crops such as rapeseed and mustard. Per hectare yield of such crops is less compared to non-traditional crops of sunflower, soybean, canola etc. for instance, average per hectare yield of rapeseed and cotton seed is 750 kg and 1244 kg compared to per hectare of sunflower, soybean and canola viz.1810 kg, 1207kg and 1246 kg, respectively. There are many other factors such as sowing of poor quality seed, late sowing, inadequate use of fertilisers and poor plant protection that are contributing to low per hectare yield of oilseed crops. It is essential to bring more area under non-traditional oilseed crops to cope with the situation.

Seed selection is a main facet of farming and should not be based on advertising or sales but purely on yield performance. The farmers are, therefore, not afraid while using the yield trial information and look for hybrids that performed well before going for seed selection. Seed performance should be measured keeping in view certain parameters including germination capacity, physical and genetic purity, seed maturity, seed health and vigour etc. Soil type, soil nutrient status, soil moisture and weather conditions are the factors that affect these parameters.

The quality seed has the potential of increasing yield on an average of 20 per cent over traditional seed used by the farmers. But certified seed is largely limited to major crops like wheat, rice and cotton. It is essential to mobilise resources for development of high yielding oilseed crop cultivars as well as agriculture extension wing to inform the farmers about the modern production technology of such crops.

Inputs like fertilisers, irrigations, and pesticides vary with respect to type of cultivar, soil type, soil nutrient status, growth stage and climatic conditions. Certain non-traditional crops such as sunflower require more nutrients. The farmers should use fertilisers in balanced amount in a bid to obtain high crops produce.

A number of sowing techniques are practiced for the cultivation of oil seed crops that have great bearing on seed germination, plant growth, development and production. Bed plantation of sunflower gives 15 per cent higher yield than traditional broadcast method and also ensures conservation of about 45 per cent water.

Cultivation area under oil seed crops is small compared to other crops like wheat, rice, cotton and sugarcane. During 2006-07, rapeseed/mustard, cottonseed, sunflower and canola were grown on an area of 628,000 acres, 7,599,000 acres, 937,000 acres and 359,000 acres, respectively. Small area under oil seed crops is due to competition from other crops like wheat, potato and maize.

One way to increase acreage under oilseed crops is to carry out cultivation on marginal lands and practicing inter-cropping. Saline soils can be managed by using gypsum and sulphuric or nitric acids in proper amounts and application of fertilisers, suitable cropping pattern including green manures and deep ploughing with chisel plough to reduce the severity of salinity/sodicity.

Inter-cropping of selected oilseed crops in wheat, sugarcane and potato is a best approach to enhance cultivation of oilseed crops. This would also increase cropping intensity that is less so far. Inter-cropping of sunflower in wheat, sugarcane and potato fields could yield best results.

Farmers prefer to grow cereals because of sound procurement system. In case of oilseed crops, there is non-existent of sound marketing system. Therefore, the farmers are reluctant to grow these crops. An efficient system of procurement is required to promote cultivation of oil seed crops. It is also essential that marketing system should not allow importers to exploit local producers as it is a usual practice of importers to decrease the market prices of imported edible oil as the maturity period of crops approaches.

In a nutshell, non-availability of hybrid seeds, high cost of foreign imported hybrid seed, high cost of storage, lack of drying facilities, lack of modern production technology, use of marginal lands, non-availability of short duration varieties, lack of rhizobium inoculum, low prices of farmers’ produce, lopsided marketing system, and high harvesting cost are factors shaping the mindset of the farmers for not opting oilseed crops cultivation.

Reducing edible oil imports -DAWN - Business; February 18, 2008
 
Grappling with transit trade



The proximity with Afghanistan and the Central Asian Republics (CARs). makes the NWFP a gateway to an emerging regional market. It has the potential to turn itself into a hub of transit trade and it can also supply consumer items to the landlocked countries.

Pakistan signed first-ever transit trade treaty with Afghanistan in 1965.The goods in transit to Afghanistan (Gita) are transported through wagons of Pakistan Railways (PR) and in trucks of the National Logistic Cell’s (NLC) from Karachi sea port to Peshawar from where they are shifted across the border at Torkham.

This cross-border trade has significantly increased over the years which benefits Pakistan in the shape of revenue from logistic services and NWFP in particular, in shape of thousands jobs. But the transport sector is marred by inefficiency resulting in delays, high costs and low reliability.

According to official estimates inadequate and inefficient transport system countrywide results in losses of four to six per cent of the GDP limiting economic growth and reducing export competitiveness. This include delays and high port costs at Karachi.

Haji Gul Afzal Shinwari, president Pakistan-Afghan Traders Group explains: “In normal conditions, 50-60 containers loaded with transit goods arrive daily at Karachi seaport, which are physically examined one by one. Since the port is short of required capacity, this exercise results in congestions at terminals, besides delays in their speedy custom clearance.”

He believes that up-gradation of the Karachi seaport with additional facilities is essential for improving the country’s logistic services.

The PR has been a main service provider since 1965 for movement of transit goods from Karachi seaport to Peshawar Dry Port from where they are sent across the border through private trucks. The PR’s annual freight business through transit goods is more than Rs480 million and it could increase manifold, if it enhances its capacity.

Traders say they need daily 40-50 wagons from Karachi to Peshawar, whereas actual availability is far less than the demand forcing them to opt for other costly options including the NLC.

Apart from non-availability of required wagons, safe transportation through PR is another issue, where the traders have many concerns. According to them, the PR is responsible for the safe and sound transportation of goods. But there are reports alleging organised pilferage of the goods on their way to Peshawar from Karachi which is managed without cutting the seals of containers. While no compensation is paid to traders for their loss, the customs charges full duty from them which is an injustice,” says a trader.

The NLC’s trucks are a costlier option as against Rs43000 per wagon fare of PR, the NLC charge Rs85,000 for carrying the same load via road.

A few years ago, the NLC was allowed to operate because the PR lacked the capacity to cater to the growing cross border trade.

Even though, NLC’s charges are almost double the PR, traders opt for it to avoid delays in transportation of their goods. According to them, the PR wagons take eight to 10 days to reach Peshawar, whereas the NLC trucks take hardly four days. But NLC also cannot fulfil the demand and traders had to wait for seven to eight days at Karachi to acquire sufficient number of trucks.

The NLC has limited capacity that is why it has acquired heavy duty vehicles from the private sector that carry transit goods on its behalf . About 80-120 trucks reach daily at NLC Amangarh (Nowshera) terminal.

Interestingly, the NLC offers logistic services for the last couple of years, but it has no written agreement with Afghan traders which creates numerous problems in routine operations of the service, explains Mr Shinwari. There is no legal framework that fixes responsibility for the maximum delivery period and clearance of claims in case goods are damaged or go missing on the way.

Likewise, NLC’s own fleet is dilapidated, as most of its vehicles are outdated which delays the delivery of goods. The trucks are also handicapped by poor highway conditions and weak highway management that cannot deliver the required levels of service.

According to official statistics, 44 per cent of the roads on this trade corridor are in poor condition, making the journey as slow as around 25 km per hour. The growing volume of the cross-border trade also requires a dry port equipped with modern facilities at Peshawar to ensure speedy clearance of goods.

Unfortunately, the dry port in Peshawar is also one of the victims of ad hocism, as a small portion of Peshawar Cantonment Railway Station is used as dry port which lacks required facilities.

On repeated demands of traders, the provincial government in 1986 allotted three small-size sheds at Peshawar Cantonment Railway Station and pledged for its further development as a dry port.

After that, Sardar Metab-led provincial government approved Rs20 million for establishing a modern dry port and allotted 64-acre land near Azakhel Payan G.T Road. This land was used by UNHCR during Afghan War and had storage infrastructure for goods.

Unfortunately, the project was forgotten after dissolution of that government. Traders however till want a dry port to be set up at Azakhel Payan to boost the transit trade. PR’s recent approach to establish new dry ports on the basis of public private partnership is being offered as an alternative.

The caretaker Minister for Railways, Mansoor Tariq in a meeting with traders in Peshawar clarified last month that financial health of the PR doesn’t allow investing money in such projects. Annual financial losses of the PR, he says, are in billions that is why it restraining itself from going into such projects. He argues: “Traders should come forward and make joint venture for establishment of a new dry port at Azakhel for which the PR will provide land.”

On the other hand, the NLC has recently built a terminal at Jamrud, just 35 km away from the Torkham border. But traders have many reservations over shifting of this business from Peshawar and Amangarh station of NLC to tribal region on account of prevailing security situation and lack of facilities there.

Grappling with transit trade -DAWN - Business; February 18, 2008
 
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