Pakistan Economy - News & Updates - Archive

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KARACHI, May 26: The poultry industry is reported to have suffered a loss of Rs18-20 billion in the last three months owing to outbreak of bird flu at some farms in the Northern Areas in February followed by detection of the virus at poultry farms in Islamabad in the third week of April. The industry suffered a loss of Rs10 billion by the end of last month.

However, the industry is now on a recovery path from the second week of this month, with poultry farm owners raising prices to recover losses. In Karachi, poultry farm owners have increased the price by Rs20 to Rs68 per kg from Rs48 on May 10.

The real jerk to the industry was experienced because of shifting of three persons infected with virus to the hospital in Islamabad last month.

“We are preparing a comprehensive report to asses the losses suffered by the industry from the third week of February on account of bird flu,” Pakistan Poultry Association (PPA) central chairman Raza Mehmood Khursan told Dawn from Lahore on Friday.

“We will present the report to the government. The bird flu scare has affected 90 per cent small and medium sized poultry farm owners,” he said, adding that out of this as many as 50 per cent have been wiped out or have changed their business. The remaining 50 per cent farmers would survive because they had poultry bird and eggs in their hands and made flock replacement on time, Mr Khursan added.

The PPA is trying to assess as to how many people have closed down their businesses and how many have lost their jobs in the last three months. As many as 1.2 million people were associated with the poultry industry (directly and indirectly) prior to the bird flu scare in February.

“I think around 600,000 people, directly and indirectly involved with the industry, might have lost their jobs in the last three months owing to closure of many farms,” the PPA chief said.

He ruled out the revival of industry in a short span of time. “Much depends on prices and perception of the consumers in future. If both remain satisfactory then there is a chance of revival in six months to one year,” Mr Khursan said.

“I can say that the perception of 80-90 per cent people is now clear about the bird flu scare,” he claimed, adding that this would help revive the industry.

He also claimed that chicken has returned to the menu list in all government departments, leading restaurants and hotels and armed forces.

Karachi Wholesale Poultry Association general-secretary Kamal Akhtar Siddiqui said the perception of people had changed and sales were satisfactory these days.

He said many farm owners had closed down their business in the last three months, adding that a day-old chicks’ price is now ruling at Rs12 from Rs2-3 last month.

 

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ISLAMABAD (IRNA) – Iran on Thursday agreed to open Taftan/Mir Javeh land route for export of Pakistani agricultural products, with both sides showing determination to enhance the volume of bilateral trade.

In this respect, Hossein Yusefi, deputy Iranian Minister of Agricultural Jihad and Pakistan's Secretary for Food, Agriculture and Livestock Muhammad Ishamil Qureshi signed the Agreed Minutes of the Pak-Iran Joint Working Group's deliberations held at Islamabad on May 23-24, 2006.

A high level delegation of Iran led by Hossein Yusefi called on Secretary, Ministry of Food, Agriculture and Livestock here on Thursday.

Both sides discussed and agreed on modified Work Plan for cooperation in agriculture especially in Horticulture, Plant, Animal Health and Food Safety.

The Iranian side appreciated Pakistan for warm welcome, hospitality and cordial atmosphere during the deliberations.

Ishamil Qureshi hoped that the visit of Hossein Yusefi will provide another opportunity to explore further areas of cooperation in the field of agriculture.

During the meeting, progress on the implementation status of decision taken in the 15th session of Joint Economic Commission of Iran and Pakistan, held on February 21-23, 2005, in Tehran, was reviewed.

The fresh proposals for the 16th Session of Pak-Iran (JEC) held in Islamabad on May 24-25, 2006, were also discussed.

 

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HYDERABAD: The Karachi Electric Supply Company (KESC) has completed a Rs3 billion project aimed at improving its services and President Pervez Musharraf will inaugurate the project soon, said Federal Water and Power Minister Liaquat Ali Jatoi on Friday.

He said that the Water and Power Development Authority (WAPDA) was making huge investments to upgrade and improve electricity supply under the directives of President and Prime Minister.

According to a spokesman for Hyderabad Electricity Supply Company (HESCO), the minister made these remarks while inaugurating a grid station of 132 KV in New Jatoi Taluka of District Naushero Feroz.

The grid station has been completed at a cost of Rs90 million in which 16 transformers and 32 towers have been installed for the provision of electricity to citizens of adjoining areas.

Chief Executive National Transmission and Distribution Company (NTDC) Haji Shabbir, Chief Executive HESCO Maqbool Khwaja and other officers concerned including District Nazim Aquib Jatoi were also present on the occasion.

The minister said, “we have completed 18 grid stations and Rs32 billion are being invested for the improvement of grid and electricity lines for the first time in the history.”

He said Dadu-Khuzdar line would be completed at a cost of Rs3 billion and other projects including Gwadar Port and Textile City were also underway for the development of the country.

Jatoi said Pakistan had also signed an agreement with Iran to purchase power for Gwadar Port and electricity would be available at 5.25 cents per unit for consumption at Gwadar.

The minister made it clear there was no loadshedding in the country, adding power failures in interior Sindh were occurring because of theft of wires.

He said a meeting would be convened next week with chief minister Sindh to discuss law and order situation and cases of electricity wire theft to provide uninterrupted power supply to citizens.

The minister said another project for provision of electricity to Gorakh Hill Station had been completed which would be shortly inaugurated by President Musharraf.

He warned all the high officials of WAPDA and HESCO that stern action would be taken against the officers found involved in forced loadshedding anywhere in the country. The minister also suspended two officials of HESCO for prolonged power failures.

Speaking on the occasion, Member Power WAPDA Anwar Khalid said 15,000 villages would be electrified across the country, including 2,500 in Sindh. He said 400 megawatts surplus electricity was available with the WAPDA.

 

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LAHORE: The Technology Upgradation and Skill Development Company (TUSDEC) has planned to spend Rs4.5 billion on 19 projects within the next couple of years through public-private sector partnerships in order to produce over 15,000 skilled workers per annum for country's industrial sector.

Often heard complaining vociferously about the dearth of skilled labour in the country, various chambers of commerce and trade association in the country have now reportedly been offered by the TUSDEC management to oversee these 19 projects at all stages of their completion, though the initial blue-prints of these initiatives have already been prepared in line with recommendations from the private sector.

According to the Ministry of Industries, Production and Special Initiatives, which governs the affairs of TUSDEC, the Rs450 million Karachi Tools, Dyes and Moulds Centre will be ready for all operational purposes by December 2006, while another Rs500 million facility of similar nature for Gujranwala Division is on the anvil.

The Ministry officials said while the work on the Gujranwala Tools, Dyes and Moulds Centre will commence by the end of this year, the government is in quite a hurry to set the ball rolling for the establishment of eight skill development centres in the earth-quake hit areas of the country.

The brick-laying on the project sites of these eight skill development centres, located in towns rocked by the October 8, 2005 earth-quake, will start from June 22 this year and will cost Rs200 million.

These centres, being financially supported by the Pakistan Industrial Development Corporation (PIDC) TUSDEC management says it is focused on bringing the level of technological infrastructure and skill development in Pakistan at par with the requirements of the international market by helping industry ‘Jump the Curve’.

With two thirds of its board members hailing from the private sector and one third from the public sector, TUSDEC is engaged in stimulating, nurturing and sustaining technological development through shared resources, skill enhancement and quality consciousness, besides aiming at triggering off Pakistan Industrial Development Corporation (PIDC), TUSDEC is currently being headed by local engineering wizard and former Lahore Chamber of Commerce and Industry Executive Committee Member Syed Almas Hyder.

Almas Hyder, who was also the brain-child behind managing the affairs of the Kot Lakhpat Industrial Estate in Lahore on modern lines for some time, is now operating with a team of eminent engineers and technology experts at TUSDEC to help the industrial sector upgrade, develop and adopt new technologies.

 

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ReutersMay 27, 2006

 

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EDITORIAL (May 27 2006): In a major policy initiative to revamp the vocational and technical training infrastructure, President Musharraf has approved a roadmap to improve the quality and quantum of workforce being produced in the country in order to synergies the availability of skilled manpower with the demands of a rapidly expanding industrial base.

The escalating shortage of skilled manpower in various sectors of the economy has precipitated the current crunch. Speaking at a meeting of NAVTEC, the President rightly said that we must harmonise the skills of our younger generation with their economic potential in the environment they belong to.

The steady depletion of trained workforce in the country, occasioned by a tendency among skilled workers to migrate to greener pastures abroad, has adversely impacted the pace of industrial expansion and productivity in the country - a trend that can only be reversed by initiating new training programmes for workers.

The government plans to train around one million people in public and private sector institutions by 2010 to meet the rapidly expanding demand for skilled labour. The total annual cost of enhancing professional capacity of 142,000 to 300,000 people within three years has been estimated at Rs 2.960 billion, but it will be an investment worth making.

Under the roadmap unveiled by the President, the revamping of technical and vocational training would be carried out by providing better training facilities, competent faculty and equipment at these institutions.

The extent of exodus of trained Pakistani manpower can be gauged from the fact that as many as 173,824 workers went abroad to seek employment in 2004 while another 142,135 left the country in 2005.

This means that the country lost 315,959 productive and skilled workers in just two years! The exodus of educated and trained manpower has already generated a dangerous void in Pakistan's labour market, thereby adversely impacting the long-term prospects of our economic recovery. The role of foreign remittances as a short-term stabiliser of economy cannot be denied, but these short-term gains are more than neutralised when viewed in the long-term perspective of the country's industrial growth.

The dark underside of manpower export is the brain drain that has exacted a horrendous price in terms of national productivity. It goes to the credit of visionary leaderships of economic powerhouses of the world that they had focused on creating an educated and trained manpower, and then made its fullest use to develop their industrial base.

China and India today are reckoned as the rising industrial giants, posing a formidable challenge even to the industrialised West. Japan has created for itself a highly respectable place in the world of the 21st century. With the advent of a globalise market economy, the role of a sound industrial base and skilled and educated manpower has assumed unprecedented importance.

Compared to other countries, Pakistan ranks way below in human resource development. This has been due largely to the short-term and self-serving priorities of Pakistan's power brokers. Instead of laying foundations of a viable industrial base for achieving long-term economic goals, we have been pursuing a policy of short-term, and short-sighted, gains.

This policy of adhocism and our leaders' quest for such "quick fixes" as manpower export and foreign aid as a substitute for enhanced industrial productivity, has indeed kept us afloat, but at the cost of our long-term economic interests.

However, it is better late than never. The President's policy decision to revamp the vocational and technical training infrastructure to improve the quality and quantum of workforce being produced in the country is a commendable move that needs to be appreciated. The government should also enhance the overall budgetary allocation for education, as education is the gateway to all progress and development.

 

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Per capita income rises to record $846: Shaukat

ISLAMABAD (May 28 2006): Prime Minister, Shaukat Aziz said on Saturday that with the country getting economic strength and realising higher economic growth rates due to prudent economic policies over the last five years, the latest data shows per capita income has risen to all-time high $846.

He stated this while briefing a delegation of All Pakistan Newspapers Society (APNS) about the country's economic performance, achievements and other economic related matters including the prices of consumer items here at the PM House.

Shaukat Aziz said the government intends to provide relief to the common man through a number of budgetary and non-budgetary measures in the forthcoming budget for the fiscal year 2006-07. He said the government has already taken some bold steps to check the prices of sugar and cement.

Underlining some reasons behind the hike in prices, the Prime Minister said it was owing to the shortfall in domestic production of sugarcane last year as well as the price trends in international market, mainly driven by the increase in oil prices at global level.

He, however, added with the import of one million tonnes of sugar last year and adequate orders already placed for the import of commodity this year, the situation has improved to some extent and will improve further in the days and months ahead.

Shaukat Aziz informed the delegation that due to the economic reforms, the country's debt has come down from over 100 percent of GDP in 1999 to less than 60 percent at present.

He said the government also intends to take some measures to check the prices of pulses, including gram, masoor, mash and moong.

Regarding the privatisation programme, the Prime Minister said the privatisation process of various public sector entities, cleared by the Cabinet Committee on Privatisation (CCOP), was clear and transparent.

He said the income tax reforms, which made the entire system transparent and taxpayers-friendly, have started to bring results with sustained growth in tax collections.

To a question, the Prime minister said oil and gas sector reforms, spearheaded over the last few years with transparent regulatory and price mechanisms in place, have also brought about improvement in this sector.

He said the prices of petroleum products have been linked with the international market, adding, however the government has made adjustment in the domestic petroleum prices only once during the last six months.

The Prime Minister said that despite the devastating October 8, 2005 earthquake and the unprecedented increase in oil prices, the government has been successful in maintaining the growth rates.

To a question about the Karachi Stock Exchange, the Prime Minister said, "we are proud of our capital market, as there was a lot of interest of investors from home and abroad. Foreign portfolio shows the confidence of investors in our capital market and economy."

He said the government has the regulatory role in the market and price fluctuations are driven by market forces. Price fluctuations are recorded everywhere, even in the Wall Street, he added.

But, he said, "we have had a world-class systematic reforms in our capital market, with all stakeholders including regulators, managers, brokers and investors playing their role in their respective areas."

Minister for Information and Broadcasting Mohammad Ali Durrani, State Minister for Information and Broadcasting Tariq Azeem, Secretary Information and Broadcasting Shahid Rafi and senior officials of the ministry were also present in the meeting.

Later, the Prime Minister met a delegation of Broadcasters Association, headed by Mir Shakeelur Rehman, who apprised him of the problems, being faced by the electronic media.

Shaukat Aziz asked the information ministry to have detailed meetings with the association to help resolve their problems.

http://www.brecorder.com/index.php?...&term=&supDate=

 

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RAWALPINDI (May 28 2006): President General Pervez Musharraf on Saturday directed adherence to top international standards in realisation of facilities at the Gwadar deep-sea port, saying that the important national asset would be a vital factor in turning Pakistan into a hub of regional trade.

Speaking at a meeting that reviewed progress on the development of the port, the President underlined that timely completion of the port on modern lines, would accrue tremendous benefits both to the local populace and the national economy.

Prime Minister Shaukat Aziz also attended the meeting.

"We must put in place high quality of shipping services and connect the port to the upper parts of the country with an elaborate network of road and railway infrastructure. At the same time, we should ensure better allied infrastructure in the form of information technology, housing, hotel and business facilities at the port," the President said.

He said the region's countries look up to Pakistan to serve as a trade and energy corridor between Central Asia, South Asia, the Gulf and the rapidly progressing western parts of China.

President Musharraf particularly outlined the impact of large-scale economic activity the port is to witness, and directed the Ministry of Ports to encourage maximum employment of local people.

"The local people should be trained to acquire skills necessary for running the operations of the port on modern lines to ensure that the multibillion rupees project reduces poverty and opens up new avenues of growth for the people of Balochistan," the President stressed.

Prime Minister Shaukat Aziz said the government would facilitate the private sector in starting off business activity at Gwadar, and added that a number of incentives were being offered to investors.

He said the construction of Gwadar airport on modern lines would help facilitate foreign and local entrepreneurs in making use of investment opportunities in the region.

Minister for Shipping and Ports Babar Khan Ghauri said that work on realisation of the state-of-the-art facilities at Gwadar port was underway on fast track basis.

He said a number of foreign and local investors have shown keen interest in business opportunities at the port and in the development of allied communication infrastructure.

 

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ISLAMABAD (May 28 2006): The Ministry of Food, Agriculture and Livestock (Minfal) is planning to launch two separate programmes, worth Rs 18.6 billion, to improve the agri sector from next fiscal year.

Sources in the Ministry told Business Recorder on Saturday that the programmes, pertaining to commercialisation of livestock sector, high efficiency in irrigation system and high-value crop production, would be launched from next year.

The Ministry would spend Rs 15 billion for promotion of efficiency in irrigation system and high-value crop production, they said.

The irrigation system would include drip and sprinkler method while high-value crop production of horticulture would be the main beneficiary of this project, sources said.

The Minfal will also launch two major initiatives for milk and meat development, with an estimated cost of Rs 3.6 billion from next fiscal year. Two private companies, namely Livestock and Dairy Development Board, and Pakistan Dairy Development Company, have been established to increase the pace of development in the livestock sector, sources said.

The Ministry has also prepared an up-scaled 'Crop Maximisation Programme, which would cover 1,000 villages in all four provinces and AJK, FATA and NAs, they said. It would enhance crop productivity of small farmers at village level, supporting them to start income generation activities in the areas of livestock, fisheries and high-value crops on sustainable basis, it is hoped.

On-going projects: Agriculture Support Loan Programme-II is an investment and reform programme supported by $350 million assistance from the Asian Development Bank.

On-Farm Water Management Programme with a cost of Rs 66 billion is meant to renovate 87,000 watercourses, but this year the programme is likely to repair 15,000 instead of 10,000 watercourses with an investment of Rs 7 billion.

The ministry is also executing a programme with the support of ADB for the improvement of horticulture and livestock related businesses at an estimated cost of Rs 4.1 billion.

 

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KARACHI (May 28 2006): Port Qasim Authority (PQA) has to-date attracted 1.463 billion-dollar (Rs 88 billion) foreign direct investment (FDI) in projects established at the port.

According to the progress report on "port industrial complex - development status, performance and framework for future growth," issued by the PQA, the FDI relates to projects established with investments from following countries.

-- PTA plant-UK, fertiliser plant-Morocco, thermal power plant-Japan/Italy, automobile plant-Japan, oil terminal-Hong Kong, polymer plant-Japan, chemical plant-Holland, container terminal-Australia, edible oil refinery-Singapore, industrial gases manufacturing-UK, BOPP films-Japan and petrochemicals-Malaysia.

-- The framework for future development includes deepening of navigational channel with all weather 13.5-metre draught at a cost of 100 million dollars and acquisition of tugs at a cost of 10 million dollars. Both these are public sector projects.

-- The private sector projects include LPG terminal, liquid cargo terminal, coal and clinker/cement terminal, grain and fertiliser terminal, second oil terminal, second container terminal and LNG terminal, which alone will be established at a cost of 500 million dollars.

-- Other mega projects include Textile City in public-private sector at a cost of rupees four billion.

-- The projects in private sector include world trade centre at a cost of 300 million dollars, waterfront developments-diamond bar island city 2.1 billion dollars, two desalination plants 320 million dollars, MAPAL oil refinery 20 million dollars, and Tawoos Pakistan (Pvt) Limited, costing Rs 40 million.

The PQA has also drawn-up plans for the infrastructure development, ie roads, sewerage, storm water drainage, pump houses and power supply, dualisation of PQA access road, and construction of flyover, reclamation, re-alignment of roads and other projects at a cost of over Rs 5,000 million.

The average annual growth rate in cargo handling over the last five years has been recorded at 8.5 percent per annum and in shipping around 10 percent per annum.

The PQA's share in sea-borne trade of Pakistan was 40 percent. Cargo handling, during 2004-2005 increased by 36 percent and cargo volume expected during 2005-2006 has been estimated at 23.3 million tonnes.

The PQA, which is catering for various development projects, has projected capital expenditure of over rupees nine billion during 2005-2006 to 2009-2010.

As a result of investor-friendly and transparent land allotment policy, industrial and commercial projects are emerging progressively. The pace of industrialisation could be judged from the fact that from June 2003 to April 2006, a total of 90 units have been established and 53 are under construction.

The LPG terminal would be commissioned shortly, while ground breaking of liquid cargo terminal and World Trade Centre would be held in next two months.

The PQA's contribution to national exchequer is reflected in collections made by the customs. The Collectorate of Customs collected Rs 62 billion in the form of duties and taxes on imports passing through Port Qasim during 2004-2005. During the current financial year ie July 2005 to April 2006, the customs receipts in terms of duties and taxes is more than Rs 59 billion.

The PQA's future strategy includes reduction in cost of doing business by improving logistics to international standards, focus on cost recovery rather than profit maximisation, enhancement of port efficiency to international standards, accommodation of larger ships to benefit from economies of scale, time-efficient and cost effective maintenance dredging and promotion of investments through institutional reforms.

 

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ISLAMABAD (May 28 2006): The Sensitive Price Indicator (SPI) year-on-year of 53 daily use items for week ending on May 25, has shown 7.98 percent increase as compared to the corresponding week of the last year.

The weekly bulletin of Federal Bureau of Statistics (FBS) shows that on year-on-year, the rise in the prices of some necessities and kitchen items had been excessive. These items are sugar, gur, pulses, potatoes, diesel, petrol, gas, kerosene oil, LPG, firewood, which hit the low-income group.

The bulletin on SPI, based on data of 53 items from 17 urban centres, showed that 13 items registered increase, and 11 items showed decline, while prices of 29 items remained unchanged with reference to the last week prices.

However, further analysis of the data showed that year-on-year basis, 13 items show double-digit increase. These include gram pulse (washed) by 47 percent, moong pulse (washed) 64 percent, mash pulse (washed) 79 percent, gur 42 percent, sugar 36 percent, potatoes 14 percent, beef 14 percent, fresh milk 11 percent, curd 10 percent firewood, 25 percent, petrol 27 percent, diesel 33 percent, LPG 71 percent, kerosene 25 percent, and gas increased by almost 10 percent.

Among these items, in a short span of one week, the prices of LPG (11 kg cylinder) increased by 2.24 percent, chicken 11.00 percent, bananas 4.90 percent, gur 1.55 percent and eggs 4.60 percent over previous week.

The FBS figures further showed that though the prices of 29 items posted no change during the week, several items are now costlier when compared to the corresponding week of the last year. For example, diesel increased by 33 percent, petrol 27 percent, match box 8 percent, ladies sandals (Bata) 20 percent, Kerosene 25 percent, tea prepared 12 percent and salt (powdered) by 22 percent.

The bulletin further indicates that though the prices of 11 items decreased to the last week prices, showed increase from last year. They are garlic, which is dearer by 20 percent, gram pulse (washed) 47 percent, moong pulse (washed) 64 percent, potatoes 14 percent, sugar 37 percent and lawn (cloth) 7 percent.

Further analysis of the report, 11 percent rise has been observed in the chicken price and 4.6 percent in the eggs from last week suggests that the bird flu fear is diminishing. The report, which is based on average results from 17 cities, reveals that the chicken rates of Hyderabad, Sukkur, Larkana in interior Sindh, and Quetta and Khuzdar in Balochistan are quite high, averaging Rs 70 per kg, whereas it touches Rs 76 per kg in Bannu, NWFP.

The rates of chicken in other cities have still not seen much change.

Meanwhile, there has been unprecedented rise in prices of pulses except Masoor (washed), which has fallen slightly. The price increases, range from 47 percent to as high as 79 percent from the corresponding week of previous year. The high rates of sugar and other items is hurting the low income group badly.

According to the FBS bulletin people in lowest income slab of up to Rs 3000, the SPI is close to 8.7 percent and Rs 3000 - 5000 income group, it is above 8 percent the average SPI increases for all income groups is 7.9 percent.

 

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WASHINGTON (May 28 2006): US Under Secretary for Economic, Business and Agricultural Affairs Josette Sheeran Shiner has said that the US government wants to find ways to support Pakistan's own efforts to ease poverty and create new economic opportunities for its citizens.

Ms Shiner concluded her four-day (May 22-25) five-nation visit, with a trip to Pakistan. She said, "More and more, we find that Pakistan is a respected advocate for economic reform and liberalisation, not just in the region but in the wider world."

This was stated in a media note issued by the office of the Spokesman of US State Department on Friday. Pakistan, the Under Secretary added, has been taking steps "to enhance its global competitiveness."

The American businessmen she met within Pakistan, she added "were impressed with the vastly improved business climate in Pakistan, and with the government's efforts to create jobs and economic growth." The visit of Under Secretary Shiner helped move US-Pakistani economic partnership to "new level."

The government of the United States has extended significant co-operation to the government of Pakistan in recent years. Economic Support Funds make up $300 million annually of President Bush's five-year, $3 billion commitment to Pakistan (fiscal years 2005 to 2009).

Economic Support Funds are broken down into $200 million annually for budget support and $100 million for programme support. This five year commitment followed United States government debt relief of approximately $1 billion in 2003 and $500 million in 2004. In addition, the United States government pledged $510 million for earthquake relief and reconstruction. During her visit to Pakistan, the senior US official met with Prime Minister Shaukat Aziz.

The Under Secretary "engaged in a strategic economic dialogue with leading Pakistani economic officials, visited a US earthquake relief project in a mountain village in the Siran Valley, and participated in a meeting of the high level panel on UN reform co-chaired by Prime Minister Aziz."

During Under Secretary's meeting with Prime Minister Aziz, "the Prime Minister announced his intention to complete negotiations on a Bilateral Investment Treaty (BIT) as soon as possible."

"A BIT would form an important part of the multifaceted US-Pakistan relationship, and would help attract US investment to Pakistan's rapidly growing economy," the press note stated.

Under Secretary remarked on the "win-win nature" of such an agreement for both countries, and lauded the additional protections that would be afforded to US investors in Pakistan "under a BIT."

While in Islamabad, the Under Secretary engaged in an economic dialogue with leading Pakistani economic officials, led by Finance Advisor Salman Shah, "to share views on domestic and international economic policies, and identify areas for strategic co-operation."

The Pakistani officials explained how they plan to sustain Pakistan's recent high growth rates by implementing a range of their second-generation microeconomic reforms.

The Under Secretary elaborated on President Bush's Regional Opportunity Zone (ROZ) initiative and next steps in outlining the parameters of the ambitious project.

She also confirmed US government support for Pakistan "as a southern hub" for transportation, energy, and commercial linkages "that would enhance" regional economic integration between South Asia and Central Asia.

 

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PESHAWAR (May 28 2006): NWFP Finance Minister Siraj-ul-Haq has said that government employees can benefit in the real sense if 100 percent increase is made in their salaries because of the soaring prices in the country.

Hence, he said, the federal government can give a gift to the entire poor nation if, in the new budget, the prices are brought down to the level when the military government took over, as the prices have increased manifold since then, and this has made life of the poor more miserable.

He was addressing a seminar on 'price hike, privatisation and social insecurity' under the auspices of Wapda Paigham Union at Press Club, Peshawar, on Saturday. The seminar, besides labour leaders, was also addressed by Tila Muhammad Taizai, chairman of Paigham Union, Merajuddin; President of National Labour Federation, and Sabir Hussain Awan MNA who highlighted the problems of the labour community, including Wapda employees.

Strongly opposing the privatisation of Pesco and other organs and installations of Wapda, Siraj said that such unwise steps meant failure and inability of the concerned ministries and authorities and if it continued and national institutions of water and power, telephone, gas and railways were sold at throwaway prices then the entire country would go under threats.

He said that MMA would oppose such steps and would send few hundred ruling families home after their accountability "through peaceful Islamic revolution". He said that Islam guarantees equality, social security and human welfare that was practically demonstrated by the Holy Prophet (PBUH). Labour was termed friend of Allah Almighty, and asked the people to pay wages to the labourers before their sweat dried and even made clear that working class was the real heir of the world by kissing their forehead.

The Minister said that dictatorship was the basic cause of all evils including price hike, poverty, and backwardness in the country.

A number of resolutions, were also passed in the seminar including giving up privatisation of Wapda, fixing compensation of Rs 0.5 million for Wapda employee on death during duty, and abolishing obscenity on official electronic media.

 

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ISLAMABAD (May 28 2006): The government spent an unprecedented amount of over Rs one trillion on poverty alleviation and social sector-related programmes during the last four years, which caused decline in poverty from 32.1 percent in 2000-01 to 25.4 percent in 2004-05.

"Rural poverty has declined from 39 percent to 31.8 percent and urban poverty from 22.7 percent to 17.1 percent", Advisor to the Ministry of Finance, Dr Ashfaque Hasan Khan told APP in an exclusive interview here on Saturday.

He said, the real GDP grew at an average of rate of almost 6 percent per annum in the last four years as against 3.3 percent in the preceding four years and is poised to be between 6 to 7 percent during the current fiscal year, showing a strong economic recovery in the country.

He said the growth recovered from 1.8 percent in 2000-01 to 8.4 percent last year. "If we take a longer term view, growth recovered from an average of 3 percent during last six years prior to 2001-02 to an average of over 6.5 percent during last three years (2002-03 - 2004-05)", he remarked.

Dr Ashfaque said that due to strong domestic consumption and investment, the demand is picking momentum and the real private sector consumption grew by 8.2 percent in 2003-04 and 16.8 percent in 2004-05.

Higher consumption spending, feeding back into economic activity is likely to support the ongoing growth momentum, he said adding, it suggests the emergence of a strong middle class with buying powers.

The advisor said that unemployment has reduced from 8.3 percent in 2001-02 to 6.2 percent in the second quarter of 2005-06 and the pace of job creation has increased.

"During 1999-2000 to 2001-02, 2.23 million jobs were created while in 2001-02 to 2003-04, 2.96 million jobs were created and during 2003-04 and the first half of the current fiscal year (2005-06), we succeeded in creating 5.8 million jobs", he remarked.

About reduction in poverty, he said that poverty in Pakistan has declined from 32.1 percent in 2000-01 to 25.4 percent in 2004-05. Rural poverty has declined from 39.0 to 31.8 percent and urban poverty from 22.7 percent to 17.1 percent, he added.

Giving reasons for decline in poverty, he said, the real GDP grew at an average rate of almost 6 percent per annum in the last 4 years (2000-01 to 2004-05) as against 3.3 percent in the preceding 4 years.

Dr Ashfaque said the agriculture sector registered a strong growth of 7.5 percent in 2004-05 and the GDP grew due to large increase in public sector spending.

He further said that Non-Interest and Non-Defence (NIND) spending in real terms grew by an average rate of 8.2 percent during 2000-06 against a decline of 1.2 percent in the 1990s. There was a four times increase in remittances and significant reduction in fiscal deficit, he said and added it reduced from an average of 7.0 percent of GDP in the 1990s to around 3.0 percent in recent years.

The advisor to finance ministry said that

 

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BEIJING (May 28 2006): China has agreed to help in development of Karachi's master plan, its basic infrastructure, road and train network and solid-waste management system. This was stated here on Saturday by Karachi City Nazim Syed Mustafa Kamal at the end of his weeklong visit to China.

It was decided that Karachi and Shanghai would strengthen their interaction and co-operative partnership as sister-cities. He termed his meeting with his counterpart in Shanghai Han Zheng as highly productive. Han Zheng assured him that he will send a team of planners to Karachi next month to help in preparing the master plan and promoting other facilities.

This will be in line with the strategy they adopted making Shanghai as one of most modern cities in the world. In an interview with APP, Mustafa Kamal said they were agreed to maintain close interaction to help in executing development projects. Pakistan, he said wished to learn from the Chinese experience and expertise for improving the basic civic amenities.

Both sides, he said would set up a secretariat of dedicated staff to carry forward their working relationship on regular basis. Mustafa Kamal said, the Karachi's elected representatives were in process of developing mega projects to improve the living conditions of their people. He hoped that the support from their Chinese friends would help to realise the future target.

The Shanghai's mayor also assured that the city's major entrepreneurs would be encouraged to participate in the Karachi's development projects. The two port cities have the potential to undertake joint ventures for socio-economic uplift, he added. Mustafa Kamal said mayor of Shanghai accepted his invitation to visit Karachi soon.

The meeting was also attended by the deputy mayor of Shanghai Tang Deng Jie and Pakistan's Consul General in Shanghai Zafaruddin Mahmood.