Pakistan Economy - News & Updates - Archive

[Neo]

Plan to develop 500 billion dollar waterfront designed ​

KARACHI (February 21 2008): Having failed to receive a positive response to the Expression of Interest (EoI), the Sindh planning and development department would now issue Request for Proposal (RfP), for the development of waterfront at Western coastline of Karachi centred around Hawksbay.

Official sources estimate the project would cost around $500 billion to develop waterfront at Western coastline of Karachi. Sources told Business Recorder on Wednesday that the process was in final stages and RFP would be published in all major foreign press, including Financial Times, Dubai Times, Khaleej Times, Straight Time, London, etc, bring initial investment of something between $130 billion and $150 billion to restore the project.

Sources said the project was standstill since August 13, 2007 by the authorities concerned, when they got Expression of Interests (EoIs) from investors and developers of international repute for development of waterfront on the western coastline of Karachi centred around Hawksbay. Sources said the companies with substantial experience and proven capabilities of conceptualisation, planning, and execution of mega urban and waterfront development projects would be asked to submit Request for Proposal.

"Only companies who have $5 billion annual turnover would be preferred to submit their RFP," they added. Sources said the Karachi waterfront project would cover the land from lighthouse to Kannup, which was around 84,000-acre land, possessing by different government organisations, including the Pakistan Navy, the Pakistan Coast Guard, the Karachi Port Trust, etc.

At present, around 21,000-acre land has been allocated for the project while 19,000-acre land will be leased to tender winner, initially, they said, adding the department was striving to convince aforementioned department to provide land for the project.

They said that immense number of foreign investor run away after signing the memorandum of understanding (MoU), hence the department has decided to reserve around $150 billion as guarantee money at the time of RFP submission.

It may be cited that environmentalists have raised several objections to the execution of the project, saying that it might cause great damage to the environment and marine life. They are of the opinion that the project should be started only after carrying out a comprehensive environment survey, which assess the effects of the project on air and marine environment, besides suggesting measures to avoid environmental degradation.

To a question, officials in department said the project would be awarded to the company, which would prove its core business activities, technical and financial capabilities, besides providing assurance that project would not damage the surroundings and marine life.

It should have a proven track record in waterfront development, including major reclamation scheme, if any, a credible record in the development of major cities or townships, which include commercial, recreational and tourism facilities, a conceptual Master Plan for the comprehensive development of coastline and proof of substantial financial capabilities.

Sources said the project, which would provide facilities of business, housing, recreational, and tourism purposes at par with developed countries would take 15 to 25 years to be completed.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'Coal reserves enough to meet energy needs for 350 years' ​

KARACHI (February 21 2008): Advisor to caretaker Prime Minister and Chairman, Pakistan State Oil (PSO), Sardar Yaseen Malik, has said that Pakistan has enough coal reserves to meet its energy requirement for the next 350 years.

Speaking at a reception, hosted by Honorary Consul General of Albania Zafar Ansari, he said that the government was working on various alternative energy projects to meet the energy requirement. Referring to the PSO, he said that the PSO was meeting around 70 percent oil requirement of the country and its daily sale on working days was around Rs 1.5 billion.

He said that PSO was the first company, which had introduced sale of petrol on credit cards, while this facility was still not available in India. Speaking on the occasion, Managing Director of Karachi Water and Sewerage Board (KWSB) Ghulam Arif Khan said that KWSB was facing financial crunch due to non-payment of water bills by the government department, private sector and general public.

He said that City Nazim Mustafa Kamal had provided Rs 27 billion from the CDGK, which were utilised to change or lay new water and sewerage lines in the city. Referring to Clifton area, he said that this area was developed more than 30 years ago and it was provided around five million gallons of water per day. Now water supply had been increased to 10 million gallons per day.

Speaking next, S.M.Munir said that election process had been completed, the political parties should give up their political differences and work for the betterment of general public. Honorary Consul General of Mozambique Khalid Tawab said the general public was facing a number of problems due to ever-increasing prices of goods, and added that the new government should work for improving living standard of general public.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Long term national energy efficiency programme planned ​

FAISALABAD (February 21 2008): Planning Commission of Pakistan is preparing a national strategy to develop and implement a "Comprehensive energy efficiency programme", with the financial assistance of Asian Development Bank and National Assessment of Energy Efficiency Market and Economy will be completed up to July 2008.

According to official sources, short-term policy and regulatory improvement recommendations and targeted public relations programmes will be developed by August 2008 by international consultants.

Strategy and action plans for initiating a long-term national energy efficiency programme will be developed up to September 2008. A Road Map for implementing the national energy efficiency programme with corresponding investment plans will be prepared by September 2008.

Planning Commission sources mentioned that new project will design a suitable programme proposal that supports government efforts to establish an enabling policy and business environment for energy efficiency, and to provide immediate financing of priority projects.

Key activities will include (i) an in-depth assessment of the energy efficiency market and the economy; (ii) an awareness-building program for energy efficiency through short-term policy and regulatory improvement recommendations, as well as targeted public relations programs; (iii) strategy and action guidelines for initiating a sustainable long-term national energy efficiency program; (iv) a road map for implementing the national energy efficiency program with corresponding investment plans; and (v) design of bankable investment projects.

Planning Commission sources disclosed that the energy efficiency market assessment will comprise a detailed analysis of market potential and barriers; programme design; resource (institutional, technical, manpower, material, and financial) evaluation; and effective organisational needs assessment for undertaking phased, prioritised energy efficiency and conservation interventions in all macroeconomic sectors and involving all stakeholder organisations as well as individual end-user interests (including those of the energy-poor and marginalised population segments).

Planning Commission will also develop recommendations for removing the institutional bottlenecks that have prevented government-sponsored energy efficiency and conservation programmes and support mechanisms from more effectively nurturing a nascent energy efficiency industry and consumer culture.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

China Mobile to provide service along Karakoram Highway ​

KARACHI (February 21 2008): China Mobile Communications Corporation, the world's largest mobile phone network, has welcomed the expansion and widening project of Karakoram Highway (KKH) and announced that its service will soon be available all along the highway.

A statement here on Wednesday said that President Pervez Musharraf has recently launched the expansion and widening project of the 335-kilometer road from Raikot to Khunjerab. It pointed out on this occasion that the President had said that several Chinese companies have been investing in Pakistan and pointed out that China Mobile has already invested $500 million in the country and have plans to invest more.

The statement further said that China Mobile has made the largest investment among all the Chinese investment in Pakistan. Pakistan Telecommunications Authority (PTA) has recently awarded the license for providing cellular service in Azad Jammu Kasmir (AJK) and Northern Areas (NA) to China Mobile.

This region is adjacent to the Pak-China border and as the main traffic stream, KKH carries great amount of freight transportation to and from China. China Mobile will put highway's telecom coverage as the most important task, promoting economic and commercial business between Pakistan and China.

China Mobile ranks as the number-one cellular company in the world in terms of network scale and customer base. The company plans to increase coverage area by several thousands miles, reaching every corner of Pakistan including highways with the capacity of 20 million subscribers, initially, which will be enhanced with the passage of time.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Services export down by 22pc​

ISLAMABAD, Feb 20: Pakistan’s services exports dipped by 22 per cent in the first half of the current fiscal year over the same period of last year, suggest official data of the Statistics division issued on Wednesday.

The proceeds from export of services in absolute term reached $1.392 billion during the July-December period of the current fiscal from $1.774 billion over the corresponding period of last year.

An official said the decline in exports was the outcome of the steady decrease in export of services — transportation, communication, construction, business and royalties and license fees -- during the period under review.

On monthly basis, the export of services went up by 20.15 per cent to $313.043 million in December 2007, as against $260.539 million over the corresponding month of last year.

The official said that the export of services would increase in the coming months. The figures for January and February are not available to determine the impact of services exports.

The government is also considering further liberalisation of services sector to increase share of the services exports. Pakistan has also submitted initial offers for foreign services providers in the Geneva-based World Trade Organisation.

Pakistan faces a series of barriers to export its services to the developed countries. Until these barriers were removed, it would be difficult for Pakistan to get maximum benefits from exporting its services to the developed countries, especially in the areas of allowing movement of natural persons.

However, the opening of a few sectors to foreign services providers, the import bill has also increased manifold during the last few years.

This is clear from the fact that the import of services went up by 10.59pc in the first half of the current fiscal year to $4.673 billion against $4.226 billion over the corresponding period of last year.

The import of services, which recorded growth includes — communication, construction, computer, business services, and government services during the period under review. The services import, which declines includes -- transportation, financial services, royalties and personal, culture services during the July-September period this year over the last year.

Statistics show that the trade deficit in services sector has also widened by 33.86 per cent to $3.281 billion in the first half of the current year against $2.451 billion over the same period of last year.

Services export down by 22pc -DAWN - Business; February 21, 2008

 

[mujahideen]

PM for utilizing alternative energy sources to reduce fuel bill

ISLAMABAD, Feb 21 (APP): Prime Minister Mohammedmian Soomro Thursday emphasized the need on utilizing alternative sources of energy including possible blending of ethanol with petroleum products. The Prime Minister said this while chairing a high level meeting held here to examine the possibility of using ethanol in petroleum products. He directed all the concerned organizations to focus on developing alternative sources of energy to help reducing the prices of petroleum products as well as saving foreign exchange.

Expressing concern over the escalation of oil prices in the international market, the Prime Minister underlined the need to employ all available alternative sources of energy which could help sustenance of economic growth.
He directed the Petroleum Ministry to finalize its recommendations and strategy in consultation with all the stakeholders.

Secretary Petroleum informed the meeting that feasibility study for blending of ethanol with petroleum products was earlier carried out and a pilot project was launched in August 2006 which was completed in March 2007.

He said the project established that the ethanol (E-10) blended fuel is environment friendly and economically viable.

The meeting was apprised that ethanol is a byproduct of molasses which is presently being exported. The local consumption of the product could help reduce the fuel bill and impact the economy in a positive manner.

The meeting was also informed that Brazil is the leading country where ethanol is being used as a major alternative source of energy.

The other countries which are switching towards this trend include USA, China, European Countries, Australia, Canada, Japan, Thailand and India.

Minister for Petroleum and Natural Resources, Ehsan-ullah-Khan also attended the meeting.

app - PM for utilizing alternative energy sources to reduce fuel bill

 

[mujahideen]

KSE market capitalisation up by Rs183b after election

IRFAN MALIK

KARACHI - Karachi Stock Exchange (KSE) market capitalization has soared by Rs183 billion or US$ 4.39 billion in just three days after the general election.
The ready market volumes grew by 105.34 million shares to 397.79 million shares on Feb 21, 2008 as compared to 292.36 million shares recorded before the general election on Feb.15, 2008.
On the back of free and fair election the equity market reacted positively and benchmark KSE-100 index jumped up by 443 points on the very next day of the election and since the election market index made a new record of 14.971 points on Thursday. The KSE-100 index rose by 618 points on Feb.21 as compared to the last trading day before election on Feb.15, 2008.
The ready market volumes on Feb.20 declined by 14.29 million shares and stood at 359.15 million shares as compared to 373.44 million shares recorded on day earlier. However, on Feb.8, 2008 the average daily volume in ready and future markets were recorded at 138mn shares (Rs14bn) & 19mn shares (Rs4bn), respectively
It was disappointing average daily volumes, the lowest for nearly 46 weeks, and cautious investor sentiment in the run up to elections weighed heavily throughout the week forcing the market to close on a negative note. Analysts attributed the current boom on the stock market with the holding of peaceful election process and acceptance of the election results from all elite political leaders of the main political parties of the country.
With the elections passing peacefully the confidence of foreign and local investor has raised and led the wave of buying spree on the stock market, analysts said.
“While the market sentiment is positive at the moment there could be instability in the coming weeks with the political situation, while the future course of action will be determined by the economic policies of political parties who manage to grab the powers, but there is no doubt over the continuity of the economic policies which introduced by the previous government,” analysts said.
A correction is due as the market is up by around more than 600 points since the holding of election, and it could well come next week, analysts said.
“In upcoming days market index may fall by more than 500 points,” analysts said. Analysts said that alliance government of PPP, PML (Q), ANP and MQM would be slightly better for the stock market, comparing the PML-N and PPP alliance government because presence of PML-Q and MQM in the coalition government will make sure the continuity of the Musharraf economic policies in future.

The Nation

 

[mujahideen]

Stocks hit record high level at 14981

KARACHI: Stock investors continued to take positions at the local capital market on Friday, pushing the benchmark KSE-100 Index to its all time high level at 14981.

Buying in early hours gave the share market a positive start and at one point the major Index was seen at 15024 points. But later profit taking eroded some of the gains from the market bringing it below the level of 15000 points at the close of the market.

The trade volume was recorded at 310 million which is 50 million shares less than the previous day.

DG Khan Cement emerged as the volume leader which registered an increase of Rs5.05 to close at Rs111.50.

KSE-30 Index gained 124 points to finish at 13387 level.

Stocks hit record high level at 14981

 

[JK!]

PM for utilizing alternative energy sources to reduce fuel bill

ISLAMABAD, Feb 21 (APP): Prime Minister Mohammedmian Soomro Thursday emphasized the need on utilizing alternative sources of energy including possible blending of ethanol with petroleum products. The Prime Minister said this while chairing a high level meeting held here to examine the possibility of using ethanol in petroleum products. He directed all the concerned organizations to focus on developing alternative sources of energy to help reducing the prices of petroleum products as well as saving foreign exchange.

Expressing concern over the escalation of oil prices in the international market, the Prime Minister underlined the need to employ all available alternative sources of energy which could help sustenance of economic growth.
He directed the Petroleum Ministry to finalize its recommendations and strategy in consultation with all the stakeholders.

Secretary Petroleum informed the meeting that feasibility study for blending of ethanol with petroleum products was earlier carried out and a pilot project was launched in August 2006 which was completed in March 2007.

He said the project established that the ethanol (E-10) blended fuel is environment friendly and economically viable.

The meeting was apprised that ethanol is a byproduct of molasses which is presently being exported. The local consumption of the product could help reduce the fuel bill and impact the economy in a positive manner.

The meeting was also informed that Brazil is the leading country where ethanol is being used as a major alternative source of energy.

The other countries which are switching towards this trend include USA, China, European Countries, Australia, Canada, Japan, Thailand and India.

Minister for Petroleum and Natural Resources, Ehsan-ullah-Khan also attended the meeting.

app - PM for utilizing alternative energy sources to reduce fuel bill

A lot has been said about wheat and flour shortages in the forum.

If you grow an ethanol economy you will compromise and sacrifice crops that could be used for food.

This is especially demonstrated as the US has now more farmers producing wheat crops for fuel instead of food hence the current situation globally.

 

[Neo]

Business group plans budget hotels ​

Friday, February 22, 2008

KARACHI: A leading Pakistani business group is introducing a new network of budget hotels across the country in a bid to target the booming middle class that is looking for better standards of hospitality.

The Hashoo Group, which runs the prestigious Pearl Continental and Marriot hotels in Pakistan, has now decided to offer a downgraded version of its luxury hotels. This is being done to lure those willing to pay more but not able to afford the luxury of higher-end hotels.

It is not without reason that two of the locations chosen for the new hotels are the industrial centres. The target is initially the people who look for good hotels when they come to these towns to do business. The introduction of these hotels in Sialkot and Faisalabad will also help attract more visitors.

“It will have the reflection of Pearl Continental,” commented Arjumand Hussain, Chief Operating Officer (COO) of Hashwani Hotels Limited, a Hashoo subsidiary that manages the hotels. “But at an affordable price.”

“There is a lot of demand for such hotels where people could have comfort and security at a reasonable price,” he said, adding budget hotels will go a long way in promoting internal tourism as well.

The first of these hotels is being constructed in Lahore and the group intends to shift its focus from north to southern parts later. Besides constructing new hotels, the strategy involves purchase and refurbishment of the existing low-quality hotels.

Lack of good hotels is believed to have impeded tourism growth in the country, which is blessed with diversified cultures, beautiful scenery and historical sites.

Tariq bin Yousuf, General Manager of Destination of the World, an international tour facilitator, regretted that a lot of potential remains unexploited because of insufficient number of resorts.

Citing Karachi as a case, he said more than a quarter of a million picnickers throng seaside every weekend and have to use the shabby huts in absence of any hotel.

Budget hotels, he said, could herald a revolution in the tourism industry provided the government gives it due attention.

People associated with the hotel business argue that official apathy has hampered the growth of the industry.

Chairman Pakistan Hotels Association Mustansir Zakir said 8-10 per cent bed tax in addition to a 15pc sales tax artificially takes up the room rent, making hotels an expensive proposition.

“Tourism is already suffering because of poor infrastructure. Government must offer some incentives by changing the tax structure and offering land for new hotels at discounted rates,” he added.

Business group plans budget hotels

 

[Neo]

SCRA receives $62m fresh funds ​

Friday, February 22, 2008

KARACHI: Foreign portfolio investors have injected a fresh over $62 million into the Pakistani equity markets over the last two days (or after the elections), as decline in the SCRA balances shrank to $37 million in minus to date for this fiscal year (2008) from around $99 million in minus on Feb 18 of this month.

Ahsan Mehanti, CEO of Shahzad Chamdia Securities, sees improved participation from overseas investors in the local markets besides local financial institutions’ active accumulation and expects that balances in SCRA account should have improved as against what the available figures show. “Tomorrow’s (Friday) updates by the SBP in this account would reveal the actual position and figures of overseas investment,” he added.

Moreover, the international oil prices broke the $101 per barrel mark freshly during the day and linked enhanced trading to the relevant stocks on the KSE with the commodity’s price hike.

“The market is passing through the financial results’ announcement season, which normally improves participation as compared with non-result seasons. It was electioneering that had stopped investors from building their position aggressively,” another analyst said.

However, the formation of the new government and relationship between President Musharraf and relations between the PPP and the PML (N) would impact equity investors, he added.

SCRA receives $62m fresh funds

 

[Neo]

Punjab Economic Report 2007 ​

Poverty headcount falls 11.52pc ​

Friday, February 22, 2008
By our correspondent

LAHORE: The poverty headcount in Punjab had declined by about 11.52 per cent between 2002 and 2005 from 33 per cent to 21.48 per cent, Punjab Chief Economist Dr Shujaat claimed while speaking at the Planning and Development Department here on Thursday.

The province was poised to meet nearly all the Millennium Development Goals well before the 2015 target except for MMR which would be achieved up to 2018, proclaimed in a recently released Punjab Economic Report-2007.

He has said the province has made a significant progress in all aspects of the economy since the broad-based strategic thrust in Vision 2020.

He claimed that the progress had been made in the wake of growth in incomes as well as Punjab government’ efforts to provide social and welfare services to the masses.

The report was produced to the Planning and Development Department at the Punjab Economic Research Institute with the assistance of Bureau of Statistics and a team of Pakistani consultants.

The report also identified growth and development challenges that lie ahead to achieve the Vision 2020, he said.

The chief economist said due to concerted government efforts and planning, the provincial GDP at constant prices of 1999-00 had increased from Rs1,997,943 million in 1999-00 to Rs3,067,033 million in 2006-07 (54 per cent increase). Besides, a significant improvement in the enrolment rate, literacy level and access to safe water and health services was also achieved, he said.

He said that the report highlighted the driving contribution of the province ranging from 57 per cent to 63 per cent in almost all the sectors of the national economy especially in GDP, community and social services, wholesale and retail trade, agriculture, and industrial value-addition. Overall, Punjab contributed 58.5 per cent to the national GDP.

He said that services sector in the province remained by far the largest sector, contributing about 54 per cent to the gross provincial product.

Though the contribution of the agriculture in the GDP declined from 31 per cent in 1990-91 to 20.3 per cent in 2006/07, yet it was one of the major sectors of the economy only next to the industry.

Structural changes in the relative contribution of different sectors suggest reliance of the economy away from agriculture.

However, the agriculture in the province still employs about 44 per cent of the labour force with its absorption rate one of the highest. He said ‘Punjab Economic Report’ proclaimed that the Punjab government was taking several initiatives to optimize agricultural resource particularly in fertilizer as well as improved quality seed and promote farm mechanization, plant protection and access to agricultural inputs especially credit. Other potential areas to increase agriculture productivity and production included promotion of non-traditional agricultural products (e.g. off-season vegetables and livestock), he added.

Dr Shujat said the government had also started several special programmes to develop the province’s less developed areas with a view to reducing regional disparities and alleviating poverty.

Special attention was being focused on Barani (rain-fed) regions of Potohar, Cholistan, and Dera Ghazi Khan. These initiatives include drought management efforts, the Barani village development project, sustainable livelihoods in Barani areas project, Bahawalpur rural development project and Dera Ghazi Khan rural development project.

These initiatives are aimed at achieving rural development through income-generating employment activities, improvements in regional infrastructure, he pointed out.

Punjab Economic Report 2007

 

[Neo]

S&P praises Pak equity market’s performance ​

Friday, February 22, 2008

SISLAMABAD: Standard and Poor’s Global Stock Market Review Report “World by Numbers” has praised the spectacular performance of Pakistan’s equity market as compared with markets not just in Asia but worldwide.

Major (Retd) Iqbal Ahmad, Executive Director-General of the Investment Division and Board of Investment (ID&BOI), said while commenting on Standard and Poor’s Global Stock Market Review Report “World by Numbers” here on Thursday.

According to the report, world markets lost $ 5.2 trillion during the month of January as the new year began with one of its worst starts, and continued to get worse.

High volatility, quick turnarounds in both the markets and sentiment were observed and lower prices prevailed throughout the month.

The report said that the January declines wiped out all prior gains, leaving all the develop markets in the red for the trailing three-month period.

Globally 50 of the 52 markets surveyed were down, with 25 of them posting double-digit losses.

Ahmad said: “Despite the political turmoil in the country due to the tragic demise of former prime minister Benazir Bhutto on December 27, 2007, Pakistan was Asia’s best performing market during January 2008 and also ranked 5th best performing in the world.

Other regional markets in Asia showed significant losses with China and Turkey losing over a fifth of their market capitalization and India and Russia were also down by over 16 per cent during that period.

The stock exchanges of Taiwan, Hong Kong, Singapore and South Korea also lost more than a tenth of their value during the month.

Ahmad was of the view that the market fundamentals remain strong in Pakistan with expected GDP growth of over 6 per cent this year.

In addition to that, a recent analytical report by a leading local securities firm mentioned that local companies remain undervalued compared with sector peers worldwide and the market has the potential to increase by 30 per cent post elections.

&P praises Pak equity market’s performance

 

[Neo]

Reserves decline further to $14.08 billion​

KARACHI: The total liquid foreign reserves held by the country declined to $14.080 billion on 16th February, 2008 from $14.550 billion on February 9, showing a fall of $470 million during one week.

Foreign reserves held by the State Bank of Pakistan fell to $11.868 billion on February 16 from $12.3183 billion a week ago, decreasing by $450 million. Net foreign reserves held by banks other than SBP decreased to $2.211 billion from $2.232 billion, falling by $21 million.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

'Punjab makes significant progress in economic field' ​

LAHORE (February 22 2008): Punjab Chief Economist Dr Shujaat Ali talking to senior journalists at P&D Board office here on Thursday, said Punjab made significant progress in all aspects of the economy since the broad-based strategic thrust identification in the Vision - 2020.

He said: "This progress accrued from growth in incomes as well as the efforts of the Punjab government to provide social and welfare services to the masses." Dr Shujaat Ali said that poverty headcount in Punjab had declined by about 11.52 percent between 2002 and 2005 from 33 to 21.48 percent.

The province was poised to meet nearly all the millennium development goals (MDGs) well before the 2015 target except MMR, which would be achieved up to 2018, proclaimed in a recently released Punjab Economic Report-2007.

The report was produced within the Planning and Development Department at the Punjab Economic Research Institute with the assistance of Bureau of Statistics and a team of Pakistani consultants. The report also identified growth and development challenges that lie ahead to achieve the Vision - 2020, he dilated.

The chief economist said due to concerted government efforts and planning, while the provincial GDP at constant prices of 1999-2000 had increased from Rs 1,997,943 million in 1999-2000 to Rs 3,067,033 million In 2006-2007 (54 percent increase), a significant improvement in the enrolment rate, literacy level, and access to safe water and health services was also achieved, he said.

Dr Shujaat Ali reiterated that PE Report highlighted the driving contribution of Punjab ranging from 57 to 63 percent in almost all the sectors of the national economy especially in GDP, community and social services, wholesale and retail trade, agriculture, and industrial value-addition. Overall, Punjab contributed 58.5 percent to national GDP.

He said the Services Sector in the Province remained by far the largest sector, contributing about 54 percent to gross provincial product. The contribution of the agriculture in the GDP though declined from 31 percent in 1990-91 to 20.3 percent in 2006-07, but it was one of the major sectors of the economy only next to industry.

Structural changes in the relative contribution of different sectors suggest reliance of the economy away from agriculture. However, the agriculture in the province still employs about 44 percent of the labour force with its absorption rate one of the highest.

He told 'Punjab Economic Report' proclaimed that the Punjab government was taking several initiatives to optimise agricultural resource use particularly fertiliser and improved quality seed and promote farm mechanisation, plant protection and access to agricultural inputs especially credit.

Other potential areas to increase agriculture productivity and production included promotion of non-traditional agricultural products (eg off-season vegetables and livestock), he added. Dr Shujaat, in his especial briefing, said the Punjab government had also started several special programmes to develop the province's less developed areas with the objective of reducing regional disparities and alleviating poverty.

Special attention was being focused on Barani (rain-fed) regions of Potohar, Cholistan, and Dera Ghazi Khan. These initiatives include drought management efforts, the Barani Village Development Project, Sustainable Livelihoods in Barani Areas Project, Bahawalpur Rural Development Project and Dera Ghazi Khan Rural Development Project.

These initiatives aimed at achieving rural development through income-generating employment activities, improvements in regional infrastructure, and provision of financial support for skills development through participatory process, he pointed.

Business Recorder [Pakistan's First Financial Daily]