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Pakistan, Mauritius to activate FTA in 18 months

Saturday, April 05, 2008

ISLAMABAD: Pakistan and Mauritius on Friday agreed to operationalise a free trade agreement between the two countries within 18 months to boost South-South trade.

Addressing a press conference at the Ministry of Commerce after the conclusion of a three-day 7th Joint Working Group (JWG) meeting, Anand Priyay Neewoor, the head of Mauritius delegation, said the issue of sensitive products would be settled once the FTA became operational between the two countries.

Anand said Pakistani business community could benefit from high per capita income of Mauritius by exporting goods and services. Also Pakistani traders could use Mauritius as a hub for neighbouring African countries having a combined population of more than 500 million, he added.

The JWG underlined that visa facilities for the business community and direct air links were crucial for the expansion of bilateral trade and investment, said an official statement. The JWG deliberated on the framework and modalities for bilateral cooperation in the fields of science and technology, fisheries and software development.

Pakistan government is considering financing an Urdu House project in Mauritius, which is estimated to cost Rs199 million. Project details have been prepared by the National Engineering Services of Pakistan (NESPAK).

The JWG noted that a Pakistani consortium had expressed its willingness to construct Jinnah Tower in Plaine Verte, Mauritius.

The meeting also reviewed progress on the implementation of the Preferential Trade Agreement (PTA), which came into force on November 30, 2007. Both sides expressed satisfaction that the PTA had started generating positive synergy among businesspeople of the two countries.

They agreed to further broaden the benefits of PTA by organising trade shows and market surveys. Both sides also agreed to fully highlight the PTA during Expo 2008 scheduled to take place in October in Karachi. The JWG reiterated the need for the PTA to culminate in the Free Trade Agreement (FTA) whereby mostly all products would be traded duty-free.

The FTA will go beyond trade in goods and encompass trade in services and trade-related investment.

Pakistan, Mauritius to activate FTA in 18 months
 
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Political instability and GST hinder PC growth rate

Saturday, April 05, 2008

KARACHI Pakistan’s PC/server market experienced a slowdown in 2007 with its annual growth rate declining to 9.6 per cent from 16.4 per cent recorded during the previous year, according to latest data released by Springboard Research.

As per Springboard’s Asian Emerging Countries Tracker report, Pakistan registered a shipment of 629,836 units of PCs and servers in 2007. In the last period, i.e. the 4th quarter of 2007, the market grew by 11 per cent year-on-year with 148,613 PC and server unit shipments.

The data also indicated that market slowdown was a result of increasing political unrest and instability in the country, along with the continuation of 15 per cent GST imposed by the government on IT goods and imports.

“Although the GST imposed on IT goods hampered Pakistan’s overall PC/server sales; demand from large organisations in the telecom, banking and financial sectors, as well as the government and education sectors, helped drive growth during a difficult year,” said Rehan Ghazi, Market Analyst at Springboard Research.

“The home segment in the past few quarters has also witnessed an increase in PC procurement, particularly for notebooks, on account of rising consumer awareness fuelled by aggressive MNC marketing,” Ghazi added.

Springboard further reported that among the application segments, the large enterprises held 27.4 per cent of total PC shipments, followed by the government and home segments.

Among brand players, HP sustained its market leadership with 8.7 per cent share in Q4 2007, while Lenovo continued to witness a decline in its market share, registering a negative annual growth rate. Toshiba emerged as a strong contender in the portable segment in the fourth quarter with its 82.8 per cent year-on-year growth rate.

The notebook segment continued to drive Pakistan’s PC/Server market growth throughout 2007. It is believed that increased consumer demand and new marketing strategies from the MNCs will help the notebook segment to further lead market growth in 2008 and beyond.

Deep-seated issues such as political instability, the widening fiscal deficit and rising inflation rate are likely to dampen Pakistan’s PC/Server market growth in the near future.

On the other hand, growing infrastructure investments and the government’s positive outlook on Information and Communication Technology (ICT) implementation in the country are likely to favorably impact the market.

Given the current market conditions, the report predicts that the PC/Server market in Pakistan will experience a growth slowdown, especially in the first two quarters of 2008. However, if the new government withdraws the GST on IT products in its June 2008 budget as expected, than it is predicted that the market will record accelerated growth, noticeable especially in the second half of 2008.

The outlook remains particularly positive for portables, as Springboard expects the segment to register a Compound Annual growth Rate (CAGR) of 24.6 per cent until 2010.

Nevertheless, Pakistan’s political climate continues to play a major role in the country’s overall market performance.

Political instability and GST hinder PC growth rate
 
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French diplomat for enhancing Pak image

Saturday, April 05, 2008

KARACHI: French Commercial Counsellor Francis Widmer has stated Pakistan is a good market for South Asia and participation of French businessmen in local trade fairs will be very helpful to commercial ties between the two countries.

During a meeting with a delegation of the Karachi Chamber of Commerce and Industry comprising Muhammad Haroon Agar, Vice President, A Abdullah Zaki, Chairman and Muhammad Idrees, Co-chairman Fairs and Exhibitions, he said, “we should enhance the positive image of Pakistan in general, particularly that of Karachi and increase trade ties between the two countries.”

He said he would contact the Paris Chamber and the Lyon Chamber and ask them to disseminate information about KCCI’s ‘My Karachi’ exhibition and invite French business entities to the fair.

French diplomat for enhancing Pak image
 
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First textile policy to be announced soon: Zafar Mahmood

KARACHI: The first textile policy of the country for a period of five years would be unveiled by the newly elected government in coming days, said Zafar Mahmood, Federal Secretary, Ministry of Textile Industry here on Friday.

“Previous government led by Prime Minister Shaukat Aziz, despite approving the first textile policy, failed to unveil it owing to ending of its constitutional tenure and now it would be announced by the present coalition government,” he said while replying to queries of the representatives of the electronic and the print media after inaugurating the 5th Textile Asia 2008 International exhibition at Karachi Expo Center.

He said previous caretaker government due to its limited nature of the assigned task, lacked required power to announce the much awaited unveiling of the policy which is expected to herald new era of development for the textile industry.

According to him Pakistan is regarded as a major player of the region in the textile sector for its quality products with growing global demand, however, owing to multifarious reasons, its is unable to perform up to its full potential.

Major deterrent factors includes paucity of water faced by the country, utilisation of quality and certified seeds for cotton growing, usage of pesticides to prevent the crop from falling prey to mealybug, American worms and boll worm besides Cotton Leaf Curl Virus (CLCV).

In response to a question he regarded stupendous increase in oil prices in the international market as one of the major deterrent factor which had adverse impact on the economy of the country in general and textile sector in particular.

On account of increase in the oil prices, the cost of production in the textile sector surged sharply, discouraging foreign importers in the process. The Federal Secretary said holding of such exhibitions on regular basis would greatly benefit local buyers by providing them ample opportunity to avail easy opportunity to purchase state-of-the-art machineries within their country.

Replying to another question relating to decline in textile exports he attributed ongoing energy crisis and widespread violence in the country after the assassination of former premier, Benazir Bhutto as major causes, which contributed towards this problem.

Other reasons include utilisation of smuggled Bio-technical cottonseeds in the country which led to the lower cotton yield.

Earlier Zafar Mahmood, alongwith Nail Ersoy, Turkish Commercial Attaché and Dr Khursheed Nizam, President, Ecommerce Gateway inaugurated the exhibition.

A number of foreign delegates from China, Germany, India, Italy, Japan, Korea, Spain, Switzerland, Taiwan, Turkey, and UK were also present at the inauguration.

The Exhibition is covering 12,000 sqm where 132 foreign & domestic exhibitors are representing more than 500 international brands. Some 273 foreign Delegates from more than 27 countries are attending the Textile Asia Exhibition.

The exhibition encompasses all the major industries including textile machinery, garment machinery, weaving machinery, embroidery machinery, knitwear machinery and accessories.

Daily Times - Leading News Resource of Pakistan
 
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French diplomat for enhancing Pak image

Saturday, April 05, 2008

KARACHI: French Commercial Counsellor Francis Widmer has stated Pakistan is a good market for South Asia and participation of French businessmen in local trade fairs will be very helpful to commercial ties between the two countries.

During a meeting with a delegation of the Karachi Chamber of Commerce and Industry comprising Muhammad Haroon Agar, Vice President, A Abdullah Zaki, Chairman and Muhammad Idrees, Co-chairman Fairs and Exhibitions, he said, “we should enhance the positive image of Pakistan in general, particularly that of Karachi and increase trade ties between the two countries.”

He said he would contact the Paris Chamber and the Lyon Chamber and ask them to disseminate information about KCCI’s ‘My Karachi’ exhibition and invite French business entities to the fair.

French diplomat for enhancing Pak image

‘Pak-French trade ties should be increased’

KARACHI: Pakistan is a good market and trade ties between French trade and business community with Karachi Chamber of Commerce and Industry (KCCI) will be increased, French commercial Counsellor, Francis Widmer said on Friday.

Talking to members of KCCI he said, “We should enhance the positive image of Pakistan in general, particularly Karachi.” He said KCCI is the renowned chamber of Pakistan, with prominent and matured industrialists and businessmen. He said, “I am convinced that participation of French businessmen will be very helpful to the commercial ties between both the countries”. Counselor said he would contact Paris Chamber and Lyon Chamber and ask them to disseminate the information of ‘My Karachi Exhibition 2008’ and invite French business entities in the exhibition.

Haroon Agar, vice president, KCCI said, this event is going to be held on 6 to 8 June 2008 at Karachi Expo Centre. Over the years since its initiation in 2004 the event ‘My Karachi-Oasis of Harmony’ has created a tremendous enthusiasm among the exhibitors and visitors and registered a significant growth in terms of participants, sales and promotion of product and services.

Daily Times - Leading News Resource of Pakistan
 
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Pakistan-Malaysia FTA in final stages

KARACHI: Government is working on Pakistan-Malaysia Free Trade Agreement (FTA) Technical Support Project to exploit the potential at the optimum level under this arrangement.

According to officials, Foreign Trade Institute of Pakistan (FTIP) has been carrying out this task, which after finalisation would be submitted to Ministry of Commerce (MoC) for final approval by April 15, 2008.

FTIP has also sought assistance from WTO Cell of Trade Development Authority of Pakistan (TDAP) for finalising this project. It is pertinent to mention that WTO Cell is also working on Pak-Malaysia FTA and in currently in the process of getting inputs from industry’s people to benefit from the market access to Far East Asia country. Pak-Malaysia FTA came into effectiv from 1st January of this year. Under Technical Support Project, Pak-Malaysia FTA communication strategy will be developed and implemented as well as export promotion programs would also be devised for the industry people to benefit from the enormous potential to export Malaysia.

Export promotion programmes envisages detail on various sectors and development of general and sector specific promotional activities. Besides FTIP will also issue six-monthly Pak-Malaysia FTA review.

Publication of handbook on FTA between the two countries highlighting opportunities & challenges for Pak exports to Malaysia will also be part of this project.

According to estimates of government and private sector, total indicative export potential for Pakistan to Malaysia is around $1.17 billion per annum against the present export volume of $54 million. “The benefit given in the form of concessions under FTA can be materialised to achieve the envisaged potential provided tangible efforts in terms of competency level and quality of products is ensured to the requirements of Malaysian buyers”, officials said. They also believed that tapping the indicative potential needs to improve the base of production, quality and competitiveness of their products through enhanced productivity.

Daily Times - Leading News Resource of Pakistan
 
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PC recommends Rs 1.795bn in PSDP for construction sector

ISLAMABAD: The Physical Planning and Housing (PP&H) sector of the planning commission has recommended Rs 1.795 billion for Public Sector Development Programme (PSDP) for the year 2008-09.

The above amount was recommended for total 64 constructions related projects (36 ongoing projects and 28 new approved projects). There are 27 other projects for which the PP&H has not recommended any allocations in PSDP for the year 2008-09.

Officials in the planning commission told Daily Times here on Friday that there were 61 ongoing construction related projects, 30 new approved projects and 9 new unapproved projects. The sum total projects is 91.

In total 61 ongoing projects, the PP&H has recommended Rs1.582 billion for 36 projects. Over all demand for these 61 ongoing projects is Rs 2.988 billion in PSDP for the year 2008-09. For 30 new approved projects, the PP&H has recommended Rs 213 million for 28 projects. Total demand for these 30 projects was Rs 503 million.

The PP&H has not made any recommendation for new unapproved nine projects. However, for these new projects, the demand is Rs 729 million in the PSDP for next fiscal year.

Explaining details of the over all construction related projects, the officials said the estimated cost for 61 ongoing projects are Rs 7.728 billion. Actual expenditures on these projects till June 2007 were Rs 2.646 billion. Total allocation for these 61 projects in 2007-08 was Rs 1.426 billion.

About 30 new approved housing and works related projects, the officials said total allocation was Rs 597 million and till June 2007 only Rs 3.303 million had been spent. However, for these projects no allocation has been made in the PSDP for year 2007-08, so there was no question of expenses on these projects in the current fiscal year. For 2008-09 PSDP, the net demand for these 30 new approved projects is Rs 503.425 million and the PP&H has recommended Rs 213.769 million for PSDP.

Total cost for nine unapproved projects is Rs 1.882 billion and the demand is Rs 729.390 million only. For these projects the PP&H has not made any recommendations in the PSDP.

The government deferred some projects that failed to start by January 2008. These projects were not scraped but deferred due to due to some financial constraints. They said there was no cut in current year PSDP.

All ongoing projects would be financed as per requirements and assured that energy related projects would be fully financed and will be provided more funds if demanded.

However, projects with slow moving progress would be financed according to their progress, they maintained.

Daily Times - Leading News Resource of Pakistan
 
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‘Conflict resolution to boost Indo-Pak trade’

LAHORE: Peace, tranquility and resolution of all outstanding political issues are prerequisite to boost up the mutual trade between Pakistan and India.

This was the consensus developed at a meeting between a delegation of former Ambassadors of India and Pakistan.

The head of the delegation, former Indian Ambassador to Pakistan, Mr Ishrat Aziz, said that all issues would be solved if both the Pakistan and India have strong economic ties.

He also said that the trade relations are the best Confidence Building Measures (CBMs) unless and until both Pakistan and India have strong economic ties, it is near to impossible for both the countries to have right place in the globalised world. Therefore, the trade between Pakistan and India should be freed from all shackles.

The former Indian Ambassador said that the private sectors of the two countries should come forward and convince their respective governments to take steps for bringing the business communities further closer.

He said that at the moment when the Indian government is making moves to convert the country into a global manufacturing hub, efforts are afoot to expedite business with neighboring countries including Pakistan.

Ishrat Aziz was of the view that exchange of trade delegations and joint exhibitions were among the most modern techniques to increase bilateral businesses so the LCCI should arrange a delegation to India so that the Pakistani businessmen could join hands with their Indian counterparts. He said that with a population of 1.1 billion people, India has a lot of economic opportunities for Pakistani businessmen.

Speaking on the occasion, the LCCI President Mohammad Ali Mian, appreciated both the governments of Pakistan and India for allowing cross-border movements of trucks and suggested that time allowed for the trucks movement is very short so there should be some special space so that the drivers of each side could take some rest and bring their respective consignment the other day.

He called for early solution of all outstanding issues saying that because of the decade old issues the trade between India and Pakistan has remained stunted. India and Pakistan together have a population of 1.295 billion (Indian 1.13 billion and Pakistani 165 million). Their total international trade amounts to $347.55 billion, out of which the trade between our two countries amounts to only $1.095 billion, which works out to 0.315 percent of their total international trade.

He said that while Pakistan’s imports from India through proper channels had increased from $382.2 million to $802 million during the last 3 years, Pakistan’s exports to India had increased from $93.8 million to $293.3 million. Pakistan has always experienced a deficit balance of trade with India, which had increased from $288.4 million in 2003-04 to $508.7 million in 2005-06. The deficit would increase manifold if the trade through third countries such as Dubai and Singapore is taken into account.

He said that while the businessmen of the two countries are interested to gain from the opportunities of trade, an unfriendly visa policy of the two countries is hampering the businessmen of the two countries to visit each other’s market and negotiate trade deals.

He said Pakistan’s access to Indian markets is also denied due to a number of Indian tariff and non-tariff barriers and problems of clearance at Wagah Border is restricting flow of trade between the two countries.

Mohammad Ali Mian said that the talks between the Commerce Secretaries of the two countries in July-August, 2007 have raised hopes that the trade between our two countries can increase to 10 billion dollars in the next three years.

He hoped that Joint Study Group of the two countries would help develop a policy framework to maximise benefits of geographical proximity, identify opportunities for enhancing economic cooperation and create a framework to boost trade in goods including such as custom cooperation, standards and certification system.

He said that once the outstanding issues between the two countries are resolved and the confidence is restored, Indian companies can also come forward by entering into joint ventures in the fields of software development, telecommunication, information technology, computer engineering, bio-technology, light engineering, foundry machinery items, metallurgy, precious and semi precious gemstones and petrochemicals. Joint ventures will increase interest in each other’s countries and provide opportunity to utilise potentials available in India and Pakistan.

Daily Times - Leading News Resource of Pakistan
 
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Economy needs a damage control programme

* POL prices and power tariff need further upward revision​

ISLAMABAD: Almost all the major economic targets fixed for the current fiscal year are going to be missed and the country needs a Damage Control Programme leading to economic recovery in the short term and consolidation in the medium term, this has been suggested to the economic managers of the new coalition government.

In this regard, some tough decision would need to be taken including adjusting POL prices according to the international market requirements, power tariff adjustment and strong administrative measures to correct supply side constraints leading to easy availability of food items on affordable prices, officials said.

The damage done to the economy during the last 14 months of the last government would take at least two fiscal years to recover and there would be limited options for the new elected government to please the nation because of nil fiscal space, official sources told Daily Times on Friday.

The main challenges before the newly sworn in coalition government are meeting budget deficit, managing external account deficit and having effective control over the inflation which is badly effecting common man of the country, the official added.

The budget deficit is likely to reach at 6.5 percent of the GDP and would cross over Rs 650 billion by the end of current fiscal year 2007-08 as compared to the budgetary target, limiting budget deficit to 4 percent of the GDP or Rs 399 billion by June 30, 2008, said the official. Declining exports, rising imports and sky rocketing oil prices in the international market would further increase the external account deficit. Increase in Wheat procurement price and two-time increase in POL prices along with increase in power tariff would definitely increase the inflation in the country.

Over and above the budgetary allocations, allowing un-bearable POL subsidies, electricity tariff subsidy, food and non-food subsidies were announced during the budget to win the support of the general public for the general elections 2008. Delay in the release of US assistance of $800 million committed by the Bush administration for the current fiscal year 2007-08 and additional expenditures incurred to control the law and order situation as well as non-development expenditures worsened the economic balance of the country during the last 14 months of the last government, the official explained.

The government had allocated in the Budget 2007-08 Rs 15 billion for providing subsidy on POL prices so that consumers are saved from adverse impact of rising oil prices in the international market.

However, the situation on ground is totally different and federal government has provided subsidy to the tune of over Rs 80 billion for subsidising POL prices. During March-June period of this fiscal year the subsidy for POL prices was estimated at Rs 56 billion and two time increase in the POL prices has reduced the burden and volume of subsidy from 56 billion to Rs 30.7 billion for March June period of this fiscal year.

Officials are of the view that oil prices in the international market witnessed all time high price of $111 per barrel and if the POL prices are not increased till June 30, 2008 the government would have to bear further Rs 48 billion to Rs 50 billion hit on budget and national exchequer would have to be burdened with borrowing from local banks or non-banking instruments, the official maintained.

In the case of Power tariff, the official informed that the government had allocated Rs 25 billion for providing subsidy on power tariff to the consumers across the country. However, on the ground situation reveals that power tariff subsidy for this fiscal year (July-June) has been estimated at Rs 67 billion at ministry of finance.

The government has provided subsidy to the tune of Rs 39.8 billion on power tariff during July-February period of this fiscal year. The 9 percent increase in power tariff announced recently would reduce the volume of subsidy by Rs 9.8 billion. The volume of the power tariff subsidy has been reduced from Rs 67 billion to Rs 572 billion for the current fiscal year. If the new government decides not to increase power tariff further till end June 2008 the burden of power tariff subsidy of Rs 57.2 billion would continue to remain on national exchequer.

Daily Times - Leading News Resource of Pakistan
 
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Inflation all time high

ISLAMABAD (April 05 2008): The inflation measured through SPI has gone up to an all time high mark of 19.83 percent on the week ended April 3 as compared to corresponding period of last year due to continuous rise in the prices of essential commodities.

The data released by the Federal Bureau of Statistics (FBS) on Friday showed that SPI based inflation, since adjustment of oil prices last month, surged to 19.83 percent on April 4 from 12.16 percent on February 12, making life harder for the low-income group.

The purchasing power of low-income group has almost squeezed as a result of sky rocketing prices of essential commodities, particularly the food items. The State Bank of Pakistan (SBP) pursuing a tight monetary policy to curb the inflation anticipated to persist and magnify in the months ahead.

It is to be seen as how the new government will tackle the situation. The major reasons for high inflation are said to be global increase in food prices, demand-supply issues and excessive borrowing by the government.

Weekly data showed that dearness was 21.44 percent for families grouped in Rs 3000 monthly income, 21.17 percent for Rs 3001 to Rs 5000 income, 20.35 percent for Rs 5001 to Rs 12000 and 18.20 percent for families with income of Rs 12000.

According to FBS, during the week under review, the per kilogram price of wheat flour average quality increased from Rs 17.25 to Rs 18.50, egg (farm) dozen from Rs 42.89 to Rs 44.47, wheat average quality from Rs 16.78 per kilogram to Rs 17.32, cooked dal plate from Rs 21.67 to Rs 22.11, red chillies from Rs 159.72 to Rs 162.85 per kg, milk fresh Rs 31.46 to Rs 31.93 per liter, potatoes from Rs 11.13 to Rs 11.29 per kg, gram pulse washed Rs 44.13 to Rs 44.67 pr kg, rice irri-6 Rs 28.40 to Rs 28.72 per kg, Tea (prepared) Rs 7.24 to Rs 7.31, curd Rs 36.97 to Rs 37.33, voil printed per meter Rs 41.18 to Rs 41.52, 0.83, lawn Rs 85.94 to Rs 86.53, cooked beef plate Rs 34.52 to Rs 34.74, rice basmati broken per kg.Rs 38.81 to Rs 38.99, 0.46, shirting per meter, Rs 71.94 to Rs 72.24, 0.42; masoor pulse washed per kg Rs 81.46 to Rs 81.76, 0.37; coarse latha per meter Rs 40.05 to Rs 40.19, electricity bulb 60 watts Rs 12.94 to Rs 12.97, bananas Rs 34.57, mash pulse washed from Rs 72.29 per kg to Rs 72.41, electricity charges 1-100 per units from Rs 2.65 to Rs 2.92 and Chappal Spng. (Bata) per pair 99 to 109.

The prices of 23 essential commodities increased during the week while 11 declined from the list of 53 essential commodities used to measure weekly inflation. The SPI bulletin, based on data of 53 items collected from 17 urban centers, showed no let up for the poor from price hike, who have to spend more money to buy the same good every week.

Business Recorder [Pakistan's First Financial Daily]
 
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Pakistan's foreign exchange reserves dip to $13.275 billion

KARACHI (April 05 2008): Foreign reserves fell by $224 million to $13.275 billion in the week that ended on March 29, the central bank said on Friday. Reserves held by the State Bank of Pakistan (SBP) fell to $11.100 billion from $11.356 billion a week earlier, while those held by commercial banks rose to $2.175 billion from $2.143 billion.

Foreign exchange reserves hit an all-time high of $16.486 billion on October 31. 2007 but then plummeted, mainly because of outflows from the stock market after President Pervez Musharraf imposed emergency on November 3.

The emergency was lifted on December 15, but foreign investors remained cautious after the assassination of Benazir Bhutto on December 27. However, after a relatively smooth election last month, foreign exchange inflows rose in the week that ended on March 8.

Business Recorder [Pakistan's First Financial Daily]
 
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Sino-Pak trade through Sust border to resume from May 1

ISLAMABAD (April 05 2008): The bilateral trade between Pakistan and China would be resumed from May 1 through Sust dry port for which the Federal Board of Revenue (FBR) has finalised arrangements for electronic exchange of import/export data between the customs authorities of both the countries.

Sources told Business Recorder on Friday that the imports from China through Sust border was not taking place due to blockage of route due to snowfall. The FBR is making necessary arrangements to install an "information exchange portal" for online connectivity with the Chinese customs.

It would be a web-based customs data exchange facility for the customs officials of both the countries. It is worth mentioning that the board wanted to control massive under-invoicing of Chinese goods and improve revenue collection from the Sust customs station.

According to sources, the FBR has obtained data from Urumchi Customs for comparing the import data available with the Chinese customs with the database of Pakistani tax authorities. It has revealed massive under-invoicing of imported goods from China. The FBR is co-ordinating with the Urumchi Customs to control the menace of under-invoicing.

The Chinese government has agreed to provide prior information about the details of containers to be transported through Sust customs station into Pakistan. Pakistan would get detailed information about the containers before moving from China so that the authorities will be able to obtain data in advance to avoid physical examination of each and every container passing through Sust.

Sources added that bilateral co-operation between Pakistan and China would cover prevention, investigation and combating of customs offences in valuation, classification, importation and exportation of goods etc. It lays down a framework for exchange of information on trafficking of illicit or contraband goods, and provides for mutual investigation in such matters.

Business Recorder [Pakistan's First Financial Daily]
 
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Minister for expeditious oil and gas exploration

ISLAMABAD (April 05 2008): Minister for Petroleum and Natural Resources, Khawaja Muhammad Asif has directed the ministry to expedite the Oil and Gas exploration in the country to meet the challenges of soaring international oil prices and reduction of oil import bill.

The minister expressed these views while taking a briefing from the senior official of the ministry. Secretary Petroleum and Natural Resources, Farrakh Qayum briefed the minister about organisation, functions and on-going projects of the ministry.

The minister was pleased to know that Pakistan has a high success rate with regard to oil and gas exploration. Khawaja Asif also took note of the huge potential of development of mineral wealth ie coal and copper. He took special interest in all the projects aimed at developing mineral in the country.

The minister said the energy is the life line of the economy and stated that Ministry of Petroleum and Natural Resources would make consorted efforts for the development of energy resources in the country. He welcomed the indication that Indian petroleum minister is likely to visit Pakistan to discuss matters of mutual interest.

The meeting was also attended by Addl. Secretary, Director General (Mineral), Director General, (Oil), Director General (Gas), Director General (Admin), Director General (Hydrocarbon Development), Managing Director Inter State Gas System and other senior officials.

Business Recorder [Pakistan's First Financial Daily]
 
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'SSGC provides 800 mmcfd gas to Karachi'

KARACHI (April 05 2008): "Sui Southern Gas Company (SSGC) provides nearly 800 mmcfd of gas to Karachi, making the city Pakistan's biggest load centre, greater than Lahore, Gujranwala and Faisalabad combined, and the figure is projected to increase to 1.2 bcf by 2010."

This was stated by Azim Iqbal Siddiqui, Managing Director SSGC while giving a presentation to the members of the Senate Functional Committee for Less Developed Areas here at head office of the company on Friday. The Committee was led by Senator Mir Wali M. Badani, who was accompanied by the committee members Amjad Abbas and Hafiz Rasheed Ahmed.

Siddiqui was joined by members of his senior management including Captain Mohammad Arif (Retd), Senior General Manager (Customer Services) and Arbab Mohammad Hashim, Senior General Manager (Distribution). Siddiqui informed the senators that in order to ensure an efficient and uninterrupted supply of gas, SSGC was putting together a system by placing additional lines.

He pointed out that as part of the gas infrastructure and rehabilitation projects in Balochistan, a gas sales agreement (GSA) was signed with Mari Gas Company Limited (MGCL) in 2006 to receive 22 mmcfd of gas from Zarghun South Gas Field whereby SSGC will construct a 64 km, 12 dia pipeline from the field to Quetta pipeline transmission network.

He said that the proposed project would be completed by December 2008. He said that SSGC was laying down several other important pipelines including 18" dia, 18 Km Abegum-Mach loopline and 18" dia 53 km Dhadher to Abb-e-gum lines, all of which will collectively benefit the domestic customers in Balochistan.

The MD SSGC pointed out that in 2006-07, SSGC supplied gas to 210 towns and villages, of which 90 destinations were covered in Balochistan and 110 in Sindh which was a far cry from the situation that existed in 2000 when not a single town or villages in Balochistan had gas connection.

Siddiqui said that SSGC under its comprehensive 5-year plan has sharply increased its gas supply to neglected areas in the past which was a proof of its abiding commitment to the province. He said that in certain areas of Balochistan, SSGC has not been able to provide gas because the population was hugely dispersed. In such areas, the MD said that SSGC had proposed LPG air mix whereby LPG could be transported through a satellite system through bousers.

The senators appreciated SSGC's role the expansion of transmission and distribution network of gas in the neglected areas of Sindh and Balochistan. Senator Mir Wali M. Badani identified certain areas of Balochistan such as Noshki and Loralai where gas had not yet reached.

The MD assured them that as soon as SSGC received funds, it would go full-throttle into completing the projects in these deprived areas. Earlier, representatives of the Works and Services Department of the City District Government Karachi and Karachi Water and Sewerage Board (KW&SB) gave a presentation to the senators and the SSGC management about the schemes completed by senators and MNAs under the Tameer-e-Watan Programme 2004-07.-PR

Business Recorder [Pakistan's First Financial Daily]
 
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Pakistan searches solution for power shortages

ISLAMABAD (April 05 2008): Pakistan's electricity production was nearly 3,000 megawatts short of demand in March. The country made up the difference by turning off lights, and everything else, for several hours a day. Prime Minister Yousuf Raza Gillani after being sworn in March 25 put the "energy crisis" up with terrorism as a top issue to address during his first 100 days in office.

But things will get worse before they get better, Gillani warned, with power outages increasing through June when air conditioners are turned on to beat the heat.

Pakistan is experiencing these shortages despite its miserly electricity use with per-capita consumption of 546 kilowatt hours per year, a fifth of the global average of 2,586 kilowatt hours, according to statistics from the seven-nation South Asia Association for Regional Co-operation. The problem stems from the fact that Pakistan has failed to build new power plants to keep up with the demand for electricity.

As a result, the poor who are connected to the grid are going without during the nearly four hours of outages that are occurring per day this month. In wealthier neighbourhoods, however, the streets come alive with the sounds of generators.

The power outages have increased generator sales - and their price tags - but have also cooled sales of fans, air conditioners and other appliances with consumers asking why have such devices without the electricity to run them. A graver concern for the economy is the outages' effects on the industrial sector, which is Pakistan's biggest consumer of electricity, and factories having to shut down during the outages.

Police have also reported increased crime during the blackouts in bigger cities. The blackouts have shed light on many problems, but just as many solutions are on offer. Of Pakistan's 19,500 megawatts of production capacity, a little more than 60 per cent is from imported oil and domestic natural gas power plants. Hydropower generated from the country's two major dams accounts for about 30 per cent, and its one nuclear power plant produces less than 5 per cent.

Coal plant production is even less, but that could change if Pakistan exploits what has been estimated as the world's third-largest known coal reserves in the south-eastern part of the country. "The answer lies in using local coal," Tahir Basharat Cheema with DG Energy Management said in a recent televised debate about the energy crisis.

Cheema suggested the government's Water and Power Development Authority develop coal generation, adding Pakistan cannot "solely depend on the private sector, [which] wants everything developed" for them.

More nuclear plants and dams are other options often put forward while others tout solar and wind power. Ejaz Ahmad, deputy director of the Pakistani branch of the World Wide Fund For Nature, or WWF, said a big part of the answer is blowing in the wind. "It is practical for cost reasons as well as environmental," he told Deutsche Presse-Agentur dpa.

With power needed immediately, wind farms look good because they are relatively fast to install whereas dams and nuclear power plants take five to six years to complete and thermal power plants a couple of years at least, he said. The WWF erected three 500-watt windmills in a rural area of the south-western province of Sindh. Each windmill cost about 1,000 dollars, including installation, and provides electricity to homes that never had it before. "It's a small project to show wind works," Amad said. Real small - the country would need at least 6 million more of those windmills to meet the electricity shortfalls it is experiencing in early April.

The windmills are in the region of Pakistan's coal reserves, which Amad warned would be a political as well as environmental disaster if they are mined. "The winds blow to India, so the pollution would blow into India, and that would cause political problems," he said. Harvest that wind instead, he suggested.

Professor Irfan Younas with the Institute of Information Technology in Rawalpindi agreed wind should play a big part of solving Pakistan's energy shortages, adding that comprehensive wind maps have already been researched in the country.

"Karachi's energy problem could be answered with wind energy," he said of Pakistan's biggest city of about 15 million people on the southern coast, where there are consistent breezes all year. Cost-effectiveness attracted Younas to both wind and solar energy, he said, but added that in the long-term, Pakistan should also build more nuclear plants and dams. "There is money to be made, no doubt about it," he said. "We need people to come and invest in independent power producers here." "We are at the point that people really need to act," he said.

Business Recorder [Pakistan's First Financial Daily]
 
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