Pakistan Economy - News & Updates - Archive

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Wednesday May 24, 2006

ISLAMABAD : The Annual Plan Coordination Committee (APCC) on Monday decided to forward next year’s Public Sector Development Programme (PSDP 2006-07) of Rs350 billion for approval by the National Economic Council along with a request to boost its size to meet some provincial demands.

In addition, an amount of Rs15 billion would be set aside to set up the Khushal Pakistan Fund and Rs10 billion more for the first and second phase of the Khushal Pakistan Programme, swelling the size of the KPP to Rs25 billion for district level schemes.


But Dr Akram Sheikh, deputy chairman of the Planning Commission said that PSDP’s size would become clear on Tuesday when final calculations would be made after prioritising various schemes cleared at the APCC meeting, keeping in mind overall resource availability.


It was the first time that the APCC did not discuss the current year’s annual plan or next year’s projections for macroeconomic framework, including growth rates, although both were leading items on its agenda.


Dr Sheikh said the annual plan and the macroeconomic framework would be finalised by the National Accounts Committee before being presented to the National Economic Council (NEC) for approval.


Of the Rs350 billion, Rs100 billion would be allocated for ongoing provincial projects.


The sources said the final size of the PSDP might be as high as Rs400 billion as some of the projects had been included in the development programme on recommendations of the president and the prime minister at the NEC level.


The APCC also approved Rs42 billion for water sector projects, including Rs5 billion for acquisition of land for five major dams.


Dr Sheikh refused to allow inclusion of additional segments of the Subakzai dam and said the project was being deliberately delayed and he would brief the president and the prime minister on it so that people responsible for delaying the project could be taken to task.


Dr Sheikh said that he had urged the meeting participants to seek smaller allocations for new projects because new projects took a lot of time to take off, adding that new projects’ utilisation rate was only 18 per cent in the first year against 50 per cent of ongoing projects.


NWFP Minister for Finance Sirajul Haq protested over deletion of 11 road projects of the National Highway Authority from the next year’s PSDP.


He said that the deputy chairman had agreed to accommodate NWFP road projects in the next year’s development programme.


M.A. Jalil, Sindh Chief Minister’s Adviser on Finance, said the centre would no longer provide funds for provincial projects, adding that the funds would be diverted for development of big reservoirs and centre’s direct projects in the provinces.


He said the centre used to fund provincial projects on 50:50 basis. However, the ongoing provincial projects and those already approved by the ECNEC and CDWP would continue to be funded by the federal government.


He said he had taken the stand that provincial projects announced by the president and prime minister from time to time should be fully funded by the federal government because the province did not have enough fiscal space to provide funds for federal projects. The centre agreed, he said.


He said he criticised the National Highway Authority for not initiating any new road development projects while having collected toll tax for many years. He said the Planning Commission’s deputy chairman had agreed that funds for approved projects should be provided without any delay.


Sources said that Sindh and Punjab had criticised Wapda and the Ministry of Water and Power over power breakdowns and for not taking them into confidence about village electrification.


Dr Akram Sheikh directed Wapda and the power ministry to assess village electrification needs in consultation with provincial governments.


Wapda authorities informed the APCC that there would be no addition in power generation capacity over the next five years and the country currently faced a shortage of six per cent and 12 per cent in domestic and industrial power supply, respectively.


Sindh’s representatives also criticised Wapda for discouraging a Chinese company from investing in the Thar coal project as it did not agree to pay more than 5.4 cents per unit power generation against a demand of 5.7 cents but later agreed to over seven cents per unit for wind energy.


Dr Akram Sheikh said he had been disappointed by the water and power ministry’s attitude towards alternate sources of energy and asked Sindh to prepare a case which he would personally take up at the higher forum for punitive action.


Dr Sheikh also criticised the petroleum ministry when a senior joint secretary of the ministry failed to inform the APCC about separate survey needed for identification of mineral deposits.


At this, he said the project for satellite geological survey, an aerial magnetic survey and other surveys for mineral exploration should be launched immediately to attract international investors and said a case be submitted for the NEC in which he would seek punitive action against the petroleum ministry’s inefficiency.

 

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Wednesday May 24, 2006

RAWALPINDI : The rail services between Rawalpindi and Lahore have now been further expanded with the addition of a new non-stop express train between the two cities. The new train named ‘Margalla Express’ was inaugurated by Federal Minister for Railways Sheikh Rashid Ahmad at the Rawalpindi Railway Station on Monday.

The minister pledged to enhance and improve travelling facilities for the passengers. He said the government was making efforts to create better working conditions for the railway staff.


Margalla Express, having the latest Chinese coaches, will cover a distance of 280km between Rawalpindi and Lahore in approximately four hours.


According to schedule, the train will depart from Rawalpindi at 7am every morning to reach Lahore at 11am and leave Lahore at 6pm to reach Rawalpindi at 10pm.


There are now four train services available between Rawalpindi and Lahore in a day. Out of these, two trains are non- stop and the other two have stopover at designated stations, said an official of Pakistan Railways.

 

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Wednesday, May 24, 2006

* Aziz says oil refinery at Gwadar, pipeline to Western China, would quicken oil import for Beijing
* Says nuclear energy technology cooperation expanding

ISLAMABAD: Pakistan and China are considering a feasibility study for an oil pipeline from Gwadar port to Western China to transport China’s oil imports from the Gulf, Prime Minister Shaukat Aziz said on Tuesday.

The Gwadar and Karachi ports offer the shortest access to the Arabian Sea for Western China, as well as Central Asia, Aziz said at a seminar on 55 years of Pakistan-China relations, organised by the Institute of Strategic Studies.

An oil pipeline from Gwadar to Western China would greatly reduce the time and distance for oil transport from the Gulf to China, he said. A major oil refinery at Gwadar would further facilitate China’s oil imports.

Pakistan is now in a position to exploit its strategic location at the crossroads of South Asia, Central Asia and West Asia to promote “corridors of cooperation” including oil and gas pipelines, electricity grids, and transit trade, the prime minister said. He said the Karakorum Highway would soon be upgraded so it could remain open all year round.

The prime minister said the two countries were also expanding cooperation in nuclear energy and space technology. “A significant area of cooperation between Pakistan and China has been the harnessing of nuclear technology for peaceful purposes under international safeguards - for the production of electricity,” Aziz said. “The two countries are working towards further expanding cooperation in this area.”

Pakistan and China have always pursued their friendship for mutual benefit and never at the cost of any other country, Aziz said. “We have not sought hegemony nor shall we accept hegemony from any quarter. Our relationship is designed to promote security and cooperation with out neighbours as well as with our global partners,” he said.

“Our relations are not designed to be used against any third country. We do not subscribe to concepts such as balance of power, pre-emption and unilateralism. We believe in strengthening the United Nations system to address and resolve all regional and global issues,” he said.

Aziz said both countries seek a level playing field without trade barriers and tariff walls and Pakistan would welcome greater Chinese investment in its economy, particularly in infrastructure, telecommunication, energy, IT, construction, mining and textiles.

Answering questions, the prime minister said the biggest challenge facing the Sino-Pak relationship was to create new areas of cooperation and sustain their friendly relations.

He said Central and South Asian cooperation was imperative for the economic growth of the two regions. Stability in Afghanistan was vital to enhancing ties between the two regions vital. Pakistan is already negotiating with some Central Asian countries to create links for electricity import, he said.

 

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Wednesday, May 24, 2006

* Overseas remittances of $3.269b received in the same period, showing an increase of 5.6%

By Arshad Hussain

KARACHI: The government has achieved its full-year foreign direct investment (FDI) target in 10 months, touching a new record level of $3.376 billion in April 2005-06.

The total FDI is up by 228 percent compared with the same period last year.

Despite the huge inflows on account of the FDI, privatization proceeds, earthquake relief fund, the level of foreign exchange reserves is not going up, a senior banker said.

The country’s total foreign exchange reserves now stand at $13.2 billion, equivalent to only three months’ import bills.

A web site of the State Bank said here on Tuesday: “The country has received a direct investment of $3.020 billion and portfolio investment of $355 million during the current fiscal. In the same period last year, the total FDI had stood at $1.027 billion, including portfolio investment of $136 million.

“The government has raised around $1.1 billion from the sell-off of Pakistan Telecommunication Company (PTCL) and $800 million from Global Bonds sale during the current fiscal,” market experts said.

The portfolio investment has also gone up by 162 percent or $220 million to $255.8 million in July-April 2005-06 against $135.5 million in the same period last year.

Investments in all the local bourses have been on a declining trend since March this year, a market expert said. The Netherlands and Switzerland have pulled back their investments from the country’s stock markets, he added.

“The local bourses are receiving an average inflow of $40 - $50 million per month,” the analyst said. The inflow coming from the USA was continuously soaring up till April this year. The portfolio investment from the USA stood at $331.5 million in first 10 months compared with $24.5 million in the same period last year, the SBP data said.

The portfolio investment from the USA has gone up in the bourses only, while the United Kingdom, Germany, Japan, Netherlands, Switzerland, and others European countries have pulled their investment back in last few months.

The direct investment has jumped over 238 percent in the first 10 months of the current fiscal to $3.020 billion in 2005-06, compared with $891 million in the same period last year, the data said.

Direct investment of the USA in Pakistan has gone up by 109 percent to $4.19 million in the July-April this year against $201 million in the same period last year, while the same investment of the UK went up by 0.5 percent to $151.4 million in first 10 months from $150.9 million.

The direct investment of the UAE shot up to $1.284 billion in the first 10 months of the current fiscal owing to the inflows of the privatization proceeds. Last year the investment of the UAE stood at only $69 million.

The investment from Saudi Arabia has jumped to $273 million in July April this year compared with only $13.5 million in 10 months last year.

Direct investment of the UK, Australia, Saudi Arabia, the UAE, the USA, the Netherlands, South Korea, Singapore, China, Australia and Switzerland has surged in Pakistan. The overseas Pakistanis remitted an amount of $3.629 billion to the country during the first 10 months of the current fiscal, up 5.16 percent compared with the July-April 2004-05.

The country’s trade deficit has gone up to $9.42 billion in first 10 months of the current fiscal, which is an alarming situation.

 

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Wednesday, May 24, 2006

To okay Pakistan’s participation in Global Mapping Project:

Federal cabinet may ratify Montreal Convention today

* The Convention is an accord that establishes a liability regime for international air transportation of commercial goods

By Sajid Chaudhry

ISLAMABAD: The federal cabinet is expected to ratify the Montreal Convention and will approve Pakistan’s participation in the Global Mapping Project on Wednesday, an official told the Daily Times on Tuesday.

The cabinet will meet under the chairmanship of Prime Minister Shaukat Aziz and will take up an 18-point agenda.

The National Transport and Trade Facilitation Committee of the Ministry of Commerce is in the process of completion of adoption of international legislations on trade and transport. To meet the Montreal Convention’s international obligations, the federal cabinet had already approved the Carriage by Air Act for the country to streamline the national legislation in line with the said convention.

An official said on November 4, 2003 rules for the Convention for the Unification of Certain Rules for International Carriage by Air were notified and the Montreal Convention was signed in Montreal in 1999. The Montreal Convention came into force in Canada through amendments to the Carriage by Air Act.

The Montreal Convention is an international agreement that establishes a liability regime for international air transportation of commercial goods and streamlines documentation procedures for air cargo by encouraging the use of automated information systems.

The Montreal Convention updates and modernizes the Warsaw Convention of 1929, a widely recognized set of international rules governing the liability of an air carrier in the event of the death or injury of a passenger, loss of baggage or cargo or delay during international air transport.

The Montreal Convention preserves many aspects of the Warsaw Convention, but features a new two-tier system of determining carrier liability for the death or injury of passengers in the event of an accident. This will allow for faster and less costly resolution of legal actions should an accident occur.

Under the first tier of the two-tier system, the carrier assumes absolute liability for all claims valued up to 100,000 Special Drawing Rights (SDR) - a currency conversion measure used by the International Monetary Fund, where one SDR is equivalent to approximately $.52. However, under the second tier, carriers can mount a legal defence against any claims above 100,000 SDR.

The coming into force of the Montreal Convention also means that: carriers must maintain adequate insurance to cover their potential liability, legal action for damages can be initiated in Canada for Canadians involved in accidents while travelling outside of Canada, as long as the carrier in question is active in Canada, and carriers are authorized to simplify and modernize documents such as electronic tickets for passengers and waybills for cargo.

The cabinet will also approve Pakistan’s participation in the Global Mapping Project that calls for an action programme for addressing global environment challenges to support sustainable economic development as resolved at the United Nations Conference on Environment and Development held in 1992.

The Global Mapping Project Steering Committee had clearly announced that geographically-specific spatial information is critical to understand the current status of global environment and monitoring changes. To this end, in 1992, Japan’s Ministry of Land, Infrastructure and Transport began to advocate the Global Mapping concept. The fundamental basis of this concept is to develop global-scale geographic information through international cooperation.

Pakistan’s participation in the said project will enable the country to improve the enviornmental conditions for economic development on sustainable basis.

 

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Wednesday, May 24, 2006

KARACHI: Consortium partners, the successful bidders in the privatization of Pakistan Steel Mills (PSM) agreed to go ahead with the investment plan of around $250 million for revamping and expansion of the mills upto 1.5 million tones per annum.

The consortium members, Al-Tuwairqi group (ATG), Magnitogorsk Iron and Steel Works (MMK) and Arif Habib group at a meeting on Tuesday decided to complete phase I of the investment plan within a maximum period of two years.

They said Dr Hilal Hussain Al Tuwairqi, chairman ATG would be the first chairman of the board of directors of Pakistan Steel post privatization.

They decided the composition of the board of directors of PSM, management structure and feasibility of various options to take production capacity of company together with Tuwairqi Steel Mills Limited upto five million tones per annum in phase II and phase III.

 

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SINGAPORE: Pakistan, looking to export wheat for the first time in more than two years, is confident it will sell some of its surplus grain to its long-time rival, India.

A revival in commodities trade between the two neighbours got a boost last year after Pakistan opened its door for Indian sugar for the first time in many years.

And now with Pakistan gearing up to harvest a larger wheat crop than last year, Islamabad is hopeful that it might succeed in striking export sales to India, which is looking to import the grain for the first time in six years to rein in its domestic prices.

“We will have exportable surplus this year and India is in need of wheat. We will also bid for it,” Fahim Akhtar Khan, managing director for the state-run Pakistan Agricultural Storage and Services Corporation Ltd, told Reuters in an interview.

The views of Khan found support from traders and analysts who said that India might consider buying from a variety countries as suppliers in Australia and the United States say Indian specifications for wheat were too stringent.

“I know the two countries are talking to do some business,” said one Singapore-based industry official.

India has floated a tender to import three million tonnes of wheat but it has received only eight bids totalling 2.68 million tonnes.

Khan added the Pakistani government would decide by the middle of next month how much grain the country would be able to offer for overseas sales.

“We are expecting a good crop this year and we also have more than two million tonnes of carryover stocks. After meeting domestic demand, we will still have some surplus,” he said.

Pakistani farm ministry officials earlier this year said that the country would harvest 20.5 million tonnes of wheat but Khan said favourable weather conditions and water availability might help the country harvest a crop close to 22 million tonnes.

Pakistan produced 21.5 million tonnes of wheat last year. Pakistan banned wheat exports in May 2004. Before the ban, it found markets in the Middle East and Africa, exporting 1.7 million tonnes in the fiscal year ending in June 2003.

“We will also be eyeing the Middle East to export some wheat,” Khan said. “It’s difficult to say now at what levels we might be able to offer in international markets.”

On Monday, wheat futures at the Chicago Board of Trade touched 3-1/2-year highs after the Kansas City wheat market hit its highest price in a decade on hot and dry weather on the U.S. Plains.

The July contract rose 10 cents to close at $4.26 per bushel, after reaching $4.28, above the previous contract high of $4.27.

 

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RAWALPINDI (updated on: May 25, 2006, 21:50 PST): President General Pervez Musharraf on Thursday underlined the importance of public sector development programmes in setting pace for rapid socio-economic uplift of common man across the country, saying sustained increase in allocations for the PSDP would provide employment to people and improve quality of life.

The President stated this during a meeting with Prime Minister Shaukat Aziz, who called on him and discussed various national and international issues including socio-economic development, and measures to offset price-hike impact on the common man in the forthcoming financial year. Describing PSDP as a vital factor in terms of transferring benefits of economic growth, President Musharraf said increased allocations for the public sector projects have been possible due to sustained improvement in all areas of the national economy in the last six years.

In this respect, he referred to substantial increase in the annual PSDP allocations and observed that a series of mega projects, commenced since then in water, energy, communication and health sectors, are nearing completion.

These projects are poised to play an important role in maintaining the country's high economic growth by providing employment and reducing poverty, he added.

"We have to maintain that upward trend through sustained focus on both mega projects as well as local development schemes - these would accrue benefits at grass roots level and greatly help in developing our human resource potential through better quality of health, education, energy and communication facilities," he said, reiterating his commitment to provision of safe drinking water, electricity and natural gas to the entire populace.

The President and Prime Minister expressed satisfaction at the state of the national economy and said improvement in revenue generation; increase in exports and a record inflow of foreign direct investment speak of continuing momentum of growth.

The President and the Prime Minister also discussed ways to offset inflationary impact on common man and observed that inflation is a result of gap in demand and supply due to high economic growth soaring international oil prices.

Prime Minister Shaukat Aziz briefed the President about his recently concluded visits to Indonesia, Greece, Morocco, Libya and Egypt, his participation in multilateral forums including D-8 conference and World Economic Forum and his bilateral meeting with foreign leaders.

 

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ISLAMABAD (updated on: May 25, 2006, 20:19 PST): Pakistan and Iran on Thursday decided to establish a Joint Investment Company to be based in Karachi with a capital of US$ 25 million to promote trade and economic relations between the two countries.

Foreign Minister Khurshid Mahmood Kasuri and his Iranian counterpart Manouchehr Mottaki took the decision during a meeting here at the Foreign Office.

The Iranian Foreign Minister conveyed his country's determination to join Pakistan in the expansion of the road and railway infrastructure between the two countries. He said that Iran had decided to establish a branch of Iranian Melli Bank in Karachi.

The two Foreign Ministers also discussed other aspects of bilateral relations and reviewed regional developments, including the situation in Iraq and Afghanistan, as well as other international issues of mutual concern.

They discussed further measures to promote regional co-operation within the Economic Co-operation Organisation (ECO), of which both countries are founding members.

The Iranian Foreign Minister is leading a delegation to the 16th session of the Iran-Pakistan Joint Economic Commission in Islamabad.

Mottaki conveyed to Kasuri the Iranian decision to ratify the Preferential Trade Agreement (PTA) which was signed by the two countries in 2005.

The PTA will contribute to expansion of bilateral trade and enable the two countries to meet the target of US$ 1 billion in annual turnover.

Foreign Minister Kasuri welcomed the Iranian decision and felt that it would go a long way in achieving the old vision of RCD, which has now been adopted by the ECO.

On the Iranian nuclear issue, Foreign Minister Kasuri said that Iran has rights and obligations, being a signatory to the NPT. He said Pakistan has adopted a principled position on this issue.

He reiterated Pakistan's established position, saying that the issue should be resolved through diplomatic means alone. He added that resort to coercive methods would only endanger regional security and stability.

Kasuri underlined the need for flexibility by all sides to achieve a mutually acceptable solution to the issue.

Mottaki invited Foreign Minister Kasuri to visit Iran and he accepted the invitation.

 

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ISLAMABAD (updated on: May 25, 2006, 23:23 PST): Visiting Iran's Foreign Minister Manouchehr Mottaki on Thursday in talks with Petroleum Minister Amanullah Khan Jadoon reviewed progress on ongoing negotiations on Iran-Pakistan-India (IPI) Gas Pipeline Project.

Both sides agreed there existed immense potential and scope for further collaboration in oil and gas sectors for mutual advantage, a Petroleum Ministry statement said.

They appreciated progress and understanding achieved by Joint Working Group on $7 billion IPI gas pipeline project in last couple of months.

It was felt this multi-billion dollar IPI project would bring two brotherly countries further closer. Both sides reiterated their leadership was looking forward to early implementation of mutually beneficial project.

They hoped modalities pertaining to gas pricing issue will be worked out to arrive at mutually acceptable formula which is pre-requisite to make the project economically viable.

Jadoon said to meet ever increasing energy demand in Pakistan, import of natural gas and LNG from neighbouring countries was only viable option for the government to cope with the situation. He invited Iran's investors to participate in Pakistan's LNG and coastal refinery projects.

 

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KARACHI (May 25 2006): While Aero Asia aircraft remained grounded for the third day on Wednesday, Shaheen Air International (SAI) was cleared by Civil Aviation Authority (CAA) to resume its domestic and international operations from 1500 hours.

The clearance letter was issued by CAA following receipt of the cheque from SAI towards payment of the outstanding dues to the satisfaction of CAA.

Aero Asia, on the other hand, was insisting that domestic private carriers should be treated at par with the national carrier, PIA, a position not acceptable to CAA.

Aero Asia's stand is that since PIA is allowed a 45 days' credit facility, the same period be allowed to other private carriers as well, instead of the suggested 15 days' time period.

CAA's argument is clear. It says that PIA is owned to the extent of 88 percent by the government, which also provides guarantee, whereas, in the case of private carriers, no such guarantee is available. It, therefore, can not be treated equally on this count with PIA. The government does not provide any such guarantee in the case of private airlines, a CAA spokesman told Business Recorder here on Wednesday.

CAA believes that some private airlines purposely allow their outstanding amount to pile up and when the amount becomes too large they ask for easy instalments pay off their dues.

But, this time they were caught on the wrong foot. The tone and temper displayed by CAA negotiators indicated that they meant business and were in no mood to show any leniency in recovering the due amount, said an insider. SAI representatives were, however, quick in realising the gravity of the situation and made the payment as desired by CAA.

Aero Asia, it appeared, was waiting for the return of defence secretary from abroad to plead its case before him. According to CAA spokesman, SAI's initiative in making the payment had weakened the case of Aero Asia and the defence secretary may find it difficult to be convinced of its arguments.

Needless to mention, it was the defence secretary who in July last year had shown good gesture in allowing the private carriers to operate on foreign routes of their choice, but so far they have failed to oblige him. Their failure confirms the belief that they lacked the resources to accept the challenge.

 

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KARACHI (May 25 2006): Sindh Senior Minister for Excise and Taxation Syed Sardar Ahmed has said that law and order situation in Sindh was better than before. He stated this while talking to a Japanese delegation led by Deputy Consul General S Kawai and vice-consul (Political and Economy) T Koyama, which met him here on Wednesday.

He said due to improved law and order, foreign investors were showing interest for investment in Sindh. The Japanese delegation assured of pursuing the Japanese investors for making investment in Sindh.

In order to attract investors, he informed the government was providing them land and other incentives. He assured that Japanese investors would be provided all facilities and protection, whether at the federal or provincial level.

Speaking about political situation in Sindh, Sardar Ahmed informed there had been coalition governments here previously also and in every government coalition partners do have their own reservations as well as differences. He said that differences were removed through dialogue and in present political situation also, the dialogue process was going on.

Regarding MQM, the Senior Minister said that it was the party of the poor and common man. In the party, discipline was given special consideration while the Rabita Committee took decisions about the public reservations.

He told the visitors that Nazims and Naib Nazims in Karachi and Hyderabad belonged to MQMs common men. In both cities, mega projects were in final stages of completion under their supervision. Similarly, MQM ministers too were working day and night for accomplishment of various projects.

He said MQM's all out efforts were aimed at conveying basic facilities to the people in Sindh and at national level and it is for that reason of its popularity among the masses.

 

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ISLAMABAD (May 25 2006): Japanese government extended a grant of 44.3 million dollar approximately for two projects, improvement of Kararo-Wadh Section of National Highway N-25 in Balochistan and Enhancement of Training Capabilities of Construction Machinery Training Institute (CMTI).

A press release of Japanese Embassy stated that Japan would remain a strong development partner as long as Pakistan strives towards the goal of a democratically free society and economy.

For the improvement of Kararo-Wadh Section of National Highway N-25, the Japanese Government will extend about 36.3 million dollar. National Highway N-25 is an important 813km link-road connecting Karachi to Chaman via Quetta.

The N-25 is growing in importance as an international highway linking Afghanistan and neighbouring inland countries to the port of Karachi by the shortest route.

The current plan is to improve 96 km section between Kararo and Wadh which is very narrow, has poor visibility, steep inclines and sharp curves that drastically slow down the progress of large vehicles.

The project involves widening of the road to 7.3m, formation of road shoulders extending 2m on both sides as per Asian Highway Standards, construction of cross drainage structures/bridges with proper installation of traffic signs, guard rails and other road safety measures.

The project will ensure a safe and smooth thoroughfare in the concerned section by averting obstruction of traffic due to accidents or the collapse of antiquated infrastructures.

The second grant for training of CMTI is approximately 8 million dollar that is part of Japan's Country Assistance Programme for Pakistan on priority, aimed to support Pakistan's efforts to develop human resources in pursuit of reviving the economy and reducing poverty.

Japan plans to accomplish this project with facilitating in three areas. It will deliver the project's main components that include construction machinery for training purposes such as bulldozers, hydraulic excavators, motor graders and crane simulators.

Besides this, the equipment for implementing training courses like computers for CAD/CAM and for general purpose would be provided. Construction of infrastructure facilities such as building of a new campus, accommodation for trainees and a canteen are also part of the project.

These projects will not help in the economic uplift only of the targeted area but are expected to bring enormous long term economic benefits to the entire country. Japan is also termed as the largest bilateral donor to Pakistan.

 

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ISLAMABAD, May 23: Five British trade missions will visit Pakistan this year to explore business opportunities in Pakistan, British High Commissioner in Pakistan Mark Lyall Grant said here on Tuesday.

Speaking at the launching ceremony of the UK land investments group here, he pointed out that the trade missions that visited Pakistan last year also had the representation from the group.

He said the United Kingdom was the single largest investor in Pakistan, with 80 British companies operating in the country.

The British envoy said the opening of the UK land investments group in Islamabad was a sign of excellent bilateral relations between the two countries.

The business development director of the group for Asia Majid Khan said the group operations would be expanded to other major cities of Pakistan, including Lahore, Karachi, Sialkot, and Faisalabad.

He said the group would offer individual investors in Pakistan the opportunity to invest in prime, undeveloped land in the UK with a view to achieving high returns in a stable economic market with the added security of a legal freehold ownership.

The group was established three years ago and was today the UK’s largest land investment company with thousands of acres of land under its direct ownership and careful management satisfying a growing international client-base of 25,000 investors.

For the first time the Pakistani investors were being provided with the opportunity to diversify their investment portfolio through an international company based locally, the group director added.

He said that the group would not stop at only offering investment opportunities in the UK, but had formulated a dynamic second phase expansion to its latest Asia office by earmarking an initial investment of 10 million pounds in local mixed development projects.

He said that a joint venture consortium established by the group here had already launched an aggressive bid for one of Pakistan’s latest mixed development venture.

 

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The expected rise in Pakistan's development spending when the next budget gets announced in less than two weeks, marks nothing of a substantial nature in changing Pakistan's economic future.

For years, the country has seen developmental spending rise every year amid much fanfare and a renewal of official commitment to give more to the poor and the needy. But each time such an announcement is made, there's another stark reality which has usually come to surface.

Typically, the developmental spending for financial year just ending has usually been below target.

Pakistan's poor and the needy have unfortunately become the victims of a grave distortion. On the one hand, there is much evidence of brick, mortar and concrete being poured to create new structures such as buildings for schools, hospitals and other social facilities. But on the other hand, such structures have often been run badly, giving little joy to the end users.

As neglect has become all too pervasive across such structures which are meant to serve the needs of the poor and the needy, a parallel structure has emerged which is backed by the private sector.

Expensive schools, hospitals and other facilities offered by private developers and promotes however are much too extravagant to remain out of reach of those among the lowest earning members of the Pakistani society.

Ultimately, what has emerged is a growing gap between the rich and the poor, the haves and the have nots. In a sense, Pakistan has fast become a land of two lands one for the rich, the other for the poor and the needy.

New facilities

Its nor surprising that such an increasingly distorted economic and social divide gives way to grounds for militancy and the spread of continuing uncertainty.

As Pakistan's planners head towards unveiling another budget, amid fanfare frequently seen before, the medium to long term consequences on the way that Pakistan is being developed can not be easily ignored.

Alternatively, Pakistan can be far better served if its leaders and planners could reconcile themselves with a reality never acknowledged before.

For a change, the country's interests could be served much better if there were fewer plans for the development of new facilities and precious resources poured in to reforming existing structures for social services.

Rejuvenation

In the long run, rather than brick and mortar, Pakistan and Pakistanis would have reason to celebrate a rejuvenation of what exists in Pakistan but has always been under utilised and badly run.

Such a rejuvenation can eventually work towards filling the gap by way of social services that has so far been filled only with half success by service providers from the private sector.

Pakistan's new budget may not be as relevant as a badly needed change in mindset which is long overdue.

Ultimately, its this kind of rejuvenation which can help to lift the prospects for business and industry by not only helping to fulfill their needs for badly needed human resources.

Much more relevant is indeed the issue that a country where basic needs are provided must eventually turn away from militant trends which is so central to overall stability.