Pakistan Economy - News & Updates - Archive

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Foreign companies remit $519m ​

Wednesday, March 05, 2008

KARACHI: Profit and dividend sent back by foreign companies rose 11 per cent during the first seven months of the current fiscal year, putting pressure on the rupee.

Latest statistics released by the State Bank of Pakistan (SBP) showed during July-January 2007-08 foreign companies remitted $519.3 million as profit and dividend compared to $467.9 million in the corresponding period of last year.

Power companies, particularly those Independent Power Producers (IPPs) generating thermal electricity, sent back $101.8 million as profit and dividend compared to $82.7 million remitted in the same period last fiscal.

Communications and IT services’ companies were at second place, which sent $84.3 million as profit against $102.3 million in the corresponding period of last year. Oil and gas exploration companies were also among major contributors to the outflow as they remitted $50.7 million compared to $23.1 million during the first seven months of last year.

However, the profit remitted by foreign companies involved in financial business fell 19.3 per cent to $49.9 million against $61.8 million last year. Other sectors dispatched $23.7 million. In the reverse remittances, the share of transport and automobile companies was $13.8 million against $8 million, showing a rise of 72.1 per cent.

Foreign companies engaged in trade remitted $13.8 million compared to $21.4 million while the tourism industry sent back $2.4 million against $1.8 million last fiscal. Cement companies sent $5.6 million as profit and dividend. Pharmaceutical firms remitted $19 million and petrol refining companies $48.2 million against $45.8 million in the corresponding period of 2006-07.

Chemical manufacturing companies sent $28.4 million as profit while tobacco and cigarette manufacturers $27.3 million against $15.4 million, up 77.1 per cent. Food packaging companies remitted $5.8 million as profit, while profits of foreign food companies dropped to $17.7 million from $19.6 million.

Foreign companies remit $519m

 

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Pakistan, Nigeria may cooperate in oil, textile ​

Wednesday, March 05, 2008

xISLAMABAD: Pakistan and Nigeria have the capacity to boost their bilateral trade manifold by working in pharmaceuticals, petroleum and textile sectors.

Islamabad Chamber of Commerce & Industry (ICCI) President Muhammad Ijaz Abbasi, while talking to R A Mustafa, Acting High Commissioner of Nigeria, in a meeting here, said that trade volume between the two countries was very low. In 2006-07, Pakistan’s exports to Nigeria were $23.2 million whereas in the same period imports from Nigeria were around $10 million.

He suggested that Nigeria could import products like medical equipment, sports’ goods, wood work, cotton, medicines, etc. Ijaz said that the economy of Pakistan was growing fast, offering tremendous opportunities for trade and investment in many areas. He said that Nigerian businessmen should visit Pakistan to explore business opportunities for joint ventures.

He further said that trade could be enhanced through regular exchange of business delegations and holding of trade exhibitions on both sides. He emphasised that steps may be taken to further enhance bilateral economic cooperation and increase the level of trade.

Mustafa said that there was a lot of room for improvement of trade between the two countries. He said that both countries should address the problems hampering trade and emphasised that for the exhilaration of trade and commerce, the diplomatic and economic relations were vital.

He said that Nigeria was interested in building strong economic relations with Pakistan and invited Pakistani businessmen to come and explore opportunities of investment in Nigeria. Mustafa further said that Pakistani businessmen could use Nigeria as a platform for business linkages with neighbouring African countries. He said that there were 36 chambers in Nigeria working for the promotion of trade and sought ICCI’s collaboration with the main Nigerian chamber for the flow of trade-related information.

Pakistan, Nigeria may cooperate in oil, textile

 

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Pakistan attends Hanover IT fair​

ISLAMABAD, March 4: As part of its mission to promote the local IT companies’ potential in international market, Pakistan is participating in the CeBit Hanover -- 2008 fair being held in Germany.

Local IT companies had been jointly selected by Pakistan Software Houses Association (Pasha) and Pakistan Software Export Board, Oun Ashraf Rana, PSEB’s director international marketing informed the media on Tuesday.

CeBit is the world’s largest trade fair showcasing digital IT and telecommunications solutions for home and work environment. The key target groups were users from industry, the wholesale and retail sector, skilled traders, banks, the services sector, government agencies, science and technology.

The fair offered an international platform for comparing notes on current industry trends, networking, and products presentations. CeBit is organised by Deutsche Messe AG every year, since 1986.

Mr Rana said that participation in international trade fairs and exhibitions by local companies was integral part of the government policy. It provided a chance to interact with the world renowned IT companies and executives in order to showcase their IT services potential.

He expressed the hope that the delegation would generate valuable business leads with a high probability of transforming into successful business ventures with the participating companies.

He said that amongst the participating companies, Progressive Systems had expertise in web portal, web applications, enterprise mobile applications development and business intelligence and data warehousing.

The GoodCore Software was providing services for the development of business applications; Xorlogics Inc specialised in database applications and mobile applications, while Server4Sale was a known icon in the area of website hosting services with integration of related applications.

According to Mr Rana, Pakistan has immense potential in IT sector outsourcing services and its participation in the CeBit fair would help increase interaction between the Pakistani companies and international IT firms.

With an IT industry worth more than $2.8 billion, including annual IT exports exceeding $1.4 billion, Pakistan is eyeing to increase the size of IT sector to over $11 billion by 2011.

Pakistan attends Hanover IT fair -DAWN - Business; March 05, 2008

 

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Italy to fund $20m for Multan plan​

MULTAN, March 4: The Italian government will spend $20 million on the reservation of cultural heritage and development of education, health, agriculture and other infrastructures in Multan under a ‘Multan the oldest living city in the world’ programme.

It was stated by Pak-Italian Chamber of Commerce and Industry President Ettore Marzocchi in a meeting with City District Nazim Mian Faisal Mukhtar here on Tuesday.

Mr Marzocchi, also the president of ECS, said the Italian government would provide Rs66 billions to Pakistan in five years for various projects.

He said the projects of water-reservoirs, mines in Balochistan and the Northern Areas, projects to control environmental pollution on the mountains of K-2 and Karakuram and projects for the development of various sectors of Multan were the part of the programme.

He said Italy had planned $20 million plan for Multan because of its historical importance. Under the project, preservation of archeological finds and cultural and historical heritage will be carried out while research will be done on the history of the city.

The plan also includes the development of handicraft, art and music while a fashion and design school will also be established here. The Italian government will also fund model processing plants for mango-related items while modern machinery will be imported for the construction of sewerage and roads projects.

According to the programme, model houses will be built for low-income citizens, while the Italian ambassador to Pakistan will sign an accord on March 7, regarding the combine programme of the city district government and the ECS.

A steering committee will be made consisting of representatives of Multan Chamber of Commerce and City District Government to manage the funds.

Mr Mukhtar told Mr Marzocchi the district government had done all the paper work regarding the cultural heritage, sewerage, education, health and other sectors while initial plans of the projects were also complete.

He praised the Italian government for its help, saying that Multan and Rome would be declared twin cities.

Italy to fund $20m for Multan plan -DAWN - Top Stories; March 05, 2008

 

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Textile exports miss target during July-January 2008​

* Textile exports fell short of $794m or 12% of the $6.853bn target​

KARACHI: Textile products have missed the export target in the first seven months (July-January) of current fiscal year by huge margins, thus making it difficult to achieve the total target at the end of this year, official statistics revealed.

The textile exports fell short of $794 million or 12 percent of $6.853 billion target set by the government for the months under review, data released by Trade Development Authority of Pakistan (TDAP) said. Textile export proceeds totaled at $6.059 billion during this period, even lower compared to $6.271 billion in the corresponding period last year.

This poor export performance of textile products also reduced the share of these products in overall export volume and it slid below 60 percent during these months, which used to be around 65 percent some years ago.

Exporters commenting on the export of textile products said apart from unrealistic target set for the textile products in view of intense competition from its competitors in the international market, country-wide incidents of violence and chaos following the assassination of former prime minister Benazir Bhutto was the main reason for the falling export of textile products.

“Assassination of Ms Bhutto in December brought to halt not only the industrial activities but huge number of export shipments could not make their way to the sea ports because of strikes and unavailability of cargo transport because of violence, which swept the country for almost one week,” they pointed out.

Category-wise export of textile products indicted that dismal export of value added products hit hard the total export of this group, which is the mainstay of export sector.

Statistics showed that bedwear exports fell to $1.086 billion against target of $1.210 billion in July-January of 2007-08, knitwear (hosiery) at $1.048 billion against the target of $1.285 billion, towels at $328 million against $386 million target, cotton yarn at $764 million against $852 million target.

Besides, cotton fabrics stood at $1.054 billion against $1.235 billion target, knitted/crocheted fabrics at $36 million against $42 million target, made-ups (exclusive bedwear) at $300 million against $311 million target, art silk and synthetic textiles at $302 million against $370 million target and other textile products at $173 million against $209 million target.

Only few export category succeeded in surpassing the target, which included readymade garments at $868 million against $583 and tents and canvas exports totaled $46 million against $ 40 million target.

The local industry has been complaining of the high cost of production, which it says is a major reason for its failure to compete in the international market. However international institutions studies pointed out lack of competitiveness of local textile products for their failure in capturing bigger share in global textile trade and suggested for more research and development and reduce the cost of doing business to compete with the products of China and India in international market.

State Bank of Pakistan (SBP) has also cautioned in its last quarterly report about further deceleration in textile exports’ growth in the short term, which would subsequently translate into the deceleration of overall export growth as well.

Daily Times - Leading News Resource of Pakistan

 

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TDAP sets $500m pharma export target in next 5 years​

KARACHI: Trade Development Authority of Pakistan (TDAP) has set $500 million pharmaceutical export target for next five years and has asked the stakeholders to develop “Pharma Vision 2013” to achieve the target.

“Pakistan Pharmaceutical Manufacturers Association (PPMA) should develop a comprehensive strategy paper as ‘Pharma Vision 2013’ so that the government and private sector have a clear roadmap on how to achieve this quantum leap”, Tariq Ikram, Chief Executive TDAP told a delegation of an association here on Tuesday. Secretary TDAP, Naved Arif, Director General (Planning), Usman Hasan, and representatives of PPMA attended the meeting.

He asked PPMA to strengthen their export department and suggest few names of industry specialists who could be hired in TDAP as well to look after their interests. Pharma exporters have proved their ability to increase exports dramatically, TDAP will establish a 3-member pharma exports cell within the next two months to support pharma efforts on a regular and structured manner. Certain issues were raised by PPMA regarding product registration, opening of offices abroad, provision of sampling to importers abroad on which Tairq Ikram took on the spot decision.

The meeting reviewed the export performance and noted with satisfaction the growth of 223 percent in export of pharma products from $32 million in 1998–99 to $102 million in 2006–07. Major export destinations were Afghanistan, Sri Lanka, Philippines, Nigeria, Singapore, UAE, Sudan, Netherlands, Saudi Arabia, US, France and Germany. It was also noted that each year since 1998–99 exports have progressively grown and major manufacturing companies were registering their products abroad and undertaking structured marketing efforts.

The role of TDAP was to acknowledge in effectively providing day-to-day facilitation in addition to conceptualising various schemes to provide financial support and subsidy for freight subsidy scheme, product registration abroad scheme, bioequivalence testing, brand registration abroad and media and marketing expenditure abroad. It was also noted that the annual exhibition and delegation calendar has been finalised in consultation with PPMA.

TDAP Chief emphasised that even the target of $1 billion was achievable since the local pharma industry successfully competes with multi-national corporations in Pakistan so they can compete with them abroad as well. The growth of 223 percent in last 8 years shows that our export product quality and packing is acceptable and of international level.

Cost of production in Pakistan was lower and our industry was rapidly adopting world class GMP levels supported by the Ministry of Health and Government of Pakistan overall.

If we can market products in Western Europe, United States and other developed countries surely we can achieve success in other parts of the world as well. Markets of Far East, Middle East, Africa, Eastern Europe, Russia, South-America offer excellent opportunities, Ikram added.

Daily Times - Leading News Resource of Pakistan

 

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MoC allows $50 R&D support for motorcycles export​

ISLAMABAD: The Ministry of Commerce has notified allowing $50 Research and Development (R&D) Support to encourage exports of motorcycles from Pakistan. In this regard the ministry has issued S.R.O. 200(I)/2008 notifying Research and Development Support (Motorcycle Industry) Order, 2008 and it shall come into force at once.

According to the Procedure and conditions. – The research and development support shall be provided to every completely built-up unit of motorcycles exported, falling under Heading No.87.11 of the Pakistan Customs Tariff, an equivalent amount of $50 in PKR per motorcycle at the conversion rate indicated in export proceeds realisation certificate subject to the following conditions, namely: - (a) the exporting unit shall spend research and development support as the amount received from the Federal Government, on the following activities, namely:- (i) product development; (ii) skill development and training; (iii) up-gradation of information technology; and (iv) professional consultancy;

(b) the expenditure on the activities referred to in clause (a) shall be reflected in the annual accounts and balance sheets of the exporting units. Exporting units shall, within ninety days of the date of realisation of export proceeds, submit its claims for the research and development support with field offices of the State Bank of Pakistan, Banking Services Corporation, through their authorised dealers. (c) certification for research and development carried out by the exporting unit shall be received from “Pakistan Automotive Manufacturers Association” in the form as set out in Annexure-IV to this Order. Before verifying the claims, the concerned Association shall carry out due diligence to ensure that the claim of the exporter is based on facts. They shall scrutinise those claims more minutely which are based on the exports to African and Gulf countries;(d) before submitting the claims, the authorised dealers shall scrutinise the application carefully and submit the same duly certified by them as an undertaking in the form as set out in Annexure-II to this Order, to the field offices of the State Bank of Pakistan, Banking Services Corporation. Such applications shall be received by the said field offices during normal public dealing and banking business hours on the working days; (e) the admissible research and development support as approved by the field office of the State Bank of Pakistan, Banking Services Corporation, shall be made by crediting the account of the concerned authorised dealer, who shall pay the amount to the exporters within twenty-four hours of receipt of the credit in their account; (f) authorised dealers, while forwarding applications for payment of research and development support, shall invariably and prominently rubber stamp at the top of the triplicate copy of the relevant E-Form. “Research and Development Support of an equivalent amount of $50 in PKR per motorcycle at the conversion rate indicated in Export Proceeds Realisation Certificate shall be claimed for this consignment”;

(h) incomplete applications shall be returned to the authorised dealers within two working days between 1430-1530 hours for completion and re-submission within the period as provided in clause (b). While re-submitting the applications, authorised dealers shall quote the reference of the “forwarding schedule” under which the application was first submitted; (i) no remittance on account of foreign importers’ subsequent claims for refund of money on account of quality or short quantity, etc., shall be allowed unless proportional amount of research and development support is refunded; and (j) in case of exports against advance payments, claim for research and development support may be submitted once the shipment of the goods has been made, against which advance payment has been received.

Daily Times - Leading News Resource of Pakistan

 

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Tusdec signs MoU with GMI Malaysia for skill development ​

LAHORE (March 05 2008): Malaysia's German-Malaysian Institute (GMI) has signed a Memorandum of Understanding (MoU) with Technology Upgradation and Skill Development Company (TUSDEC) for skill development in line with the needs of industrial sector in Pakistan.

According to a TUSDEC's spokesman, the MoU signing ceremony between the two organisations was held at GMI headquarters in Malaysian capital, Kuala Lumpur during a recent visit of a TUSDEC delegation to the South East Asian country.

TUSDEC Chairman Manzar Shamim and GMI Managing Director Yusoff Muhammad Sahir inked the agreement at a simple ceremony. GMI, a centre for advanced skills training, will extend cooperation to TUSDEC for the development of curricula and practical training material in the fields of tool and die technology, mould technology, mechatronics and process, instrumentation and control in addition to collaborating in short-term and customised courses, staff attachment, training of trainers and promotion of industrial linkages.

It was also agreed, under the MoU, that a team of GMI will soon visit Pakistan to assess the industrial requirements in major industrial hubs of the country especially Lahore and Karachi. GMI with a number of campuses across Malaysia, offers intensive courses with hands-on practical and theory in the fields of production technology and industrial electronics with specialisation in the areas of mould, tool and die, product design and manufacturing, mechatronics, process instrumentation and control, electronics and information technology and network security.

Business Recorder [Pakistan's First Financial Daily]

 

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MNCs to invest $30 billion in diverse sectors: advisor ​

ISLAMABAD (March 04 2008): The multinational companies have pledged 30 billion dollars for investment in Pakistan's energy and other diverse sectors. This was stated by Amar Lal, Advisor to Prime Minister on Minorities Affairs after a meeting with Canadian Ambassador and political representatives of Germany, Netherlands, Poland and Austria.

The multinational companies of these countries have shown interest to invest in mining of Thar coal project for 3,000 megawatt coal-based power plant, wind energy projects and gas turbines projects. In addition to that, investment would be made for laying gas pipeline and crude oil pipeline from Turkemanistan and Kazakistan, another project of Liquid Natural Gas (LNG) costing 10 Billion Dollars.

It was also discussed to set up three oil refineries, each to produce 100,000 barrels per day, 4 electricity power plants to produce 1000 megawatt electricity at Lahore, Faisalabad, Rohri and Jamshoro. The project to set up three oil refineries at Multan, Karachi and Sukkur was discussed in the meeting.

With mutual consultation, it was also decided to invest in upgrading the education, health and tourism training centres up to international standard to make a joint venture with local and international companies for creating one million jobs in the country and another one million abroad.

Housing schemes will also attract substantial investment as Canadian, American and Abu Dhabi companies have submitted proposals for new housing schemes to be launched on modern lines in the country, Amar Lal said. Those proposals, he said, have been submitted to the Prime Minister.

Business Recorder [Pakistan's First Financial Daily]

 

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Banking spread narrows by 39bps to 7.07pc ​

Still considered very high with average lending rates around 11.26 per cent and profit on deposits only almost 4.19 per cent​

Thursday, March 06, 2008

KARACHI: The average banking spread in January 2008 slightly moved down by 39 basis points to 7.07 percent against 7.46 percent in the same month of year 2007.

The State Bank of Pakistan (SBP) in its monetary policy for second half of current fiscal year had increased it policy discount rate by 50 basis points from 10 to 10.5 percent and average lending rates of banks also rose by 8 basis points to 11.26 percent from 11.18 percent.

However, in the meantime the deposit rates of banks also inched up by 47 basis points to 4.19 percent from 3.72 percent in January 2007. Though deposit rates increased in January 2008 the accountholders are getting very low return.

The difference between lending and deposit rate shows that returns to accountholders are not commensurate with the profits that banks are earning by investing depositors money. In February 2001, Dr Ishrat Hussain then Governor State Bank of Pakistan (SBP) the sole regulator of banking sector in the country had said that depositors were not getting proper rate of return due to problems of non-performing loans. However, in June 2002 the SBP reported that NPL issue had settled and the volume of NPL was lowest, however banks did not increase the rate of return and SBP also did not take any action against them.

In April 2006 the present Governor Dr Shamshad Aktar had said that banking spread was very high in the county and termed it an inefficiency of banks. However, she said that time is yet to come when SBP should exercise its powers. In December 2006 she said that spreads were high because the sector is not facing competition and it was hurting the economy.

Holding responsible for high banking spread chairman Research Institute of Islamic Banking and Finance Dr Shahid Hassan Siddiqui claimed, “SBP is not exercising the powers vested in it to reduce the spread because the local and foreign owners of the banks registered in Pakistan are influencing central bank’s policies.”

He said that by delaying and not exercising its powers SBP was providing an opportunity to these powerful groups to earn undue profits of about Rs80 billion per year the cost of which was being borne by 25 million depositors, which is also hurting the economy and affecting the life of 160 million people.

Couple of days back the First Capital Equities Limited (FCEL) a local brokerage house in its research analysis said that during calendar year 2007 the profitability of 17 listed banks, constituting 87 percent of overall banking sector assets of the industry, grew by 4.7 percent to Rs73 billion against Rs69 billion of year 2006.

It may be noted that banks’ profit during the last seven years gradually increased to new peak of Rs123 billion in 2006 as compared to Rs7 billion in 2000. Although banks earned this profit on the savings of depositors, they did not transfer profit to depositors and during the last seven years depositors profit declined to 3.4 percent in 2006 as against the 6.5 percent in 2000.

Banking spread narrows by 39bps to 7.07pc

 

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Budget deficit at 3.6pc of GDP ​

Thursday, March 06, 2008

KARACHI: Pakistan’s budget deficit for the first half of the 2007/08 fiscal year was 3.6 per cent of gross domestic product (GDP), the government said on Wednesday, reinforcing views that the full-year target will be missed.

The deficit for the six months from July to December compared with a budget deficit of 1.9 per cent a year ago, according to data posted on the Finance Ministry’s Web site. Lower-than-expected revenue growth during the six months, coupled with higher expenditures, were the main causes for the swelling deficit, analysts said.

“The full-year number is likely to be in the excess of 5.0 per cent,” said Asif Qureshi, head of research at brokerage Invisor Securities. The government’s fiscal deficit target for the 2007/08 fiscal year is 4.0 per cent of GDP. It is also targeting GDP growth of 7.2 per cent, though the State Bank of Pakistan has already cut its forecast to 6.6-7.0 per cent.

During July-December, revenue grew by only 1.76 per cent to 625.59 billion rupees ($9.96 billion), while expenditure grew 25.28 per cent to 981.91 billion ($15.62 billion), according to the data.

Higher debt servicing costs, increased outlay on subsidies for energy and food, and increased development spending led to this sharp rise in expenditure. “The half-year deficit number is pretty high, and such fiscal slippages may have adverse implications on Pakistan’s sovereign ratings,” said Qureshi.

Budget deficit at 3.6pc of GDP

 

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US-Pak trade ties growing ​

USTR 2008 report lauds steps taken by Pakistan​

Thursday, March 06, 2008
WASHINGTON: The US-Pakistan trade grew in the year 2007 and the two countries continue to expand their bilateral trading relationship, particularly through US helping Pakistan foster a climate conducive to increased foreign investment, a new American annual report said.

The US Trade Representative delivering the 2008 Trade Policy Agenda and 2007 Annual Report to Congress on Tuesday noted that a top priority for the Bush administration in South Asia has been to build a relationship with Pakistan as a strategic partner for the long term.

America’s highest ranking international trade official Susan Schwab also reported that in 2007, the Administration completed drafting the proposed Reconstruction Opportunity Zones (ROZ) legislation and is working with Congress regarding introduction of the requisite legislative measure for launch of the initiative.

Under the plan, President Bush, who proposed the initiative after his meeting with President Musharraf in Islamabad in March 2006, is seeking authorization from Congress to allow certain products manufactured in designated zones in Afghanistan and bordering areas of Pakistan, to enter the United States duty-free. This initiative is designed to support counter-terrorism efforts by spurring job creation and investment in the areas.

Schwab acknowledged that “Pakistan has been a critical partner on the front line in the fight against al Qaeda and the struggle to counter extremism. US economic support for Pakistan and our growing bilateral trade relationship have been important contributors to Pakistan’s significant economic growth and development in the years since 2001.”

Continuing, she underscored that the US task is even more important now as the Pakistani people look to democratic transition in the wake of tragic martyrdom of former prime minister Benazir Bhutto.

The United States remains Pakistan’s largest trading partner, and the two-way trade between the two allies has been growing in the last few years with Pakistan’s exports to the country, mainly textiles, in the fiscal year 2006-07 totaling around $3.1 billion.

The US exports to Pakistan have been in the form of high-tech commercial airplanes and modern equipment. In pursuit of enhanced trade and economic ties, in 2003 the United States and Pakistan signed a TIFA and held meetings in 2005 and 2006 .The next meeting is scheduled to be held in the spring of 2008. The report applauded the progress the Pakistani government has made in recent years to improve copyright enforcement, including taking significant steps against unauthorized optical disc production and exports of pirated optical discs. Further, it created the Intellectual Property Rights Organization (IPRO). In 2007, USTR continued efforts to finalize a bilateral investment treaty with Pakistan.

Ambassador Schwab met twice with Pakistan’s former commerce minister Humayun Khan in 2007, once in Washington and once in Lahore, Pakistan. They covered a number of priorities in the bilateral economic relationship, including ROZs, intellectual property rights, and the status of negotiations on a Bilateral Investment Treaty (BIT).

The USTR also participated in the October 2007 US-Pakistan economic dialogue meetings co-chaired by the State Department’s Under Secretary for Economic Affairs Reuben Jeffery and Pakistan’s Economic Advisor Salman Shah.

US-Pak trade ties growing

 

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Pakistan to get $75m to help farmers ​

Thursday, March 06, 2008

ISLAMABAD: The Asian Development Bank (ADB) will provide Pakistan with $75 million in loans to build several multipurpose dams, irrigation canals and drinking water supplies at districts of Attock, Rawalpindi, Jhelum and Chakwal.

According to a statement of the ADB issued here, the project will improve the livelihood of about 22,000 farming households by bringing irrigation to 11,500 hectares of agricultural land that used to rely on irregular and unpredictable rainfall, as well as improving existing irrigation networks across another 10,000 hectares.

The project will also increase supplies of water for domestic use to rural communities and small towns in Punjab province’s mentioned districts.“Without secure water sources, farming in rain-fed Barani areas usually have low productivity and carry a high risk because crops often fail when there is drought,” said Arnaud Cauchois, Rural Development Specialist at ADB.

Barani is a term used to refer to agricultural areas dependent on rain. This project will give farmers a reliable water supply, which will increase crop and livestock productivity and therefore increase people’s incomes. At the same time, it will increase household’s access to cleaner water, therefore reducing sickness and mortality rates caused by waterborne diseases.

The construction of dams across the Potohar Plateau started as early as the 1960s, but they were not as beneficial as had been hoped because local communities rarely participated in their development. Farmers did not get the financial and technical support necessary to switch from rain-fed agriculture to irrigated farming, and there was no watershed management, resulting in a high reservoir sedimentation rate.

In this new project, a more holistic approach is being used that is simultaneously looking at upstream watershed management and downstream irrigated area development. It will also involve local communities to ensure the project is demand driven.Farming is the traditional source of livelihood across Potohar, but crop yields in the barani areas have been typically less than half compared to those in areas with river-fed irrigation.

Pakistan to get $75m to help farmers

 

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Cement and rice to be exported to Sri Lanka ​

ISLAMABAD (March 06 2008): Pakistan will supply cement and rice to Sri Lanka, a private television channel reported. Sri Lankan government would import cement from Pakistan through the recently set up State Trading Co-operative Wholesale Company Limited to counter the shortage allegedly created by errant traders concealing their stocks, private television channel reported.

The agreement is expected to be signed shortly with a company in Pakistan to import cement. The demand for cement has risen with the commencement of many massive infrastructure projects.

The Trade Development Authority of Pakistan (TDAP), meanwhile, has agreed to export 500 tonnes of Basmati rice to Sri Lanka to bridge its demand-supply gap. The island nation, on its part has allowed the import of these consignments duty free to keep its prices under check and encourage high imports.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan could become IT leader: US diplomat ​

LAHORE (March 06 2008): The principal officer, United States Consulate, Bryan D Hunt, has said Pakistan has the potential to become one of the leaders in Information Technology, but it would have to take some strategic decisions regarding the implementation of property rights laws.

Hunt's comments came at the closing ceremony of a three-day LCCI IT Fair-2008 on Wednesday. Lahore Chamber of Commerce and Industry (LCCI) President Mohammad Ali Mian, Senior Vice-President Mian Muzaffar Ali, Vice-President Shafqat Saeed Piracha, former LCCI vice-president and the chairman, Standing Committee on Event Management and Achievement Awards, Sheikh Mohammad Arshad, and the chairman, Standing Committee on Information Technology, Ibrahim Qureshi, also spoke on the occasion.

He praised the LCCI for organising the event, saying the IT sector was one of the most promising sectors. He said several Pak companies were receiving tremendous contracts from the US and once the laws pertaining to property rights were enforced properly the situation would get a boost. The LCCI chief said the Lahore Chamber was trying to promote the IT sector and the IT Fair-2008 was a step in that direction.

He said the LCCI through the IT fair has made an attempt to provide an opportunity to the local companies to interact with world renowned IT companies, including Intel and Microsoft. Mohammad Ali Mian said Pakistan has immense potential in the IT sector outsourcing services and it is eyeing to increase the size of the IT sector.

He said that with every global IT company in the world having presence in Pakistan, and with revenues growing by 30-40 percent year on year, the IT industry is the most exciting and dynamic sector in the country today.

He said an industry characterised by 75,000 professionals, major ongoing IT projects within the government and the private sector to the tune of hundreds of millions of US dollars, and world-class software products and services companies bears testimony to the vibrancy of the IT and IT-enabled services sector in Pakistan.

The convergence of communications, computing, and entertainment has resulted in the blurring of boundaries between disciplines and IT companies now come in all shapes and sizes. IT has indeed been taken out of the closet and has been mainstreamed into every aspect of industrial and economic activity within the country, he added.

The LCCI chief said the growth of the IT sector is evident from the fact that Pakistan in term of Internet-users population in Asia is at 10th place with an amazing rate of growth. "Even with this high pace of growth we still believe that a lot of work should be done to give awareness to people especially the business community.

He said with more than 1,000 IT companies registered in the country, IT exports grew by an average of 50 percent in each of the last four years. We still believe that efforts should have been made to facilitate the country's IT industry through its programs in Human Capital, Office Space, Marketing, Company Capability Development, Telecom Bandwidth, Industry Finance, Public Policy, Strategy & Research, and Facilitation.

The LCCI IT Fair-2008 was organised by the Lahore Chamber of Commerce and Industry in collaboration with big Information Technology names, including Intel Pakistan, Microsoft Pakistan and Raffles (Pvt) Limited.

The exhibitors include hardware companies, networking solutions, Internet infrastructure and services, computer peripherals, software houses, computer telephony, data equipment and services and customised software/hardware solution providers.

Business Recorder [Pakistan's First Financial Daily]