Pakistan Economy - News & Updates - Archive

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Services trade deficit widens by 40.35%​

KARACHI: The Services trade deficit widens to $4.223 billion, an increase of 40.35 percent, in first eight months (July-February) of current financial year exceeding by $3.009 billion compared to corresponding month last year, latest data released by Federal Bureau of Statistics (FBS) show. However, it narrowed down by 32.14 percent in the month of February to $256.529 million compared to $378.054 million for the same month last year. Furthermore, it declined by 61.76 percent against preceding month of January when it stood at $ 670.905 million. During July-February 2007-08, services export declined by 16.34 percent to $2.123 billion against $2.538 billion previous year whereas imports surged by 14.41 percent to $6.347 billion over $5.547 billion in the last year.

The exports depicted healthy gains of almost 100 percent in the month of February to $508.951 million over $ 254.919 million in the previous year. However, imports also increased by almost 21 percent during February to $765.480 million against $632.973 million in the last fiscal year. Analysts said that robust performance of export helped to curtail the overall deficit during the current fiscal year, otherwise it would have been much larger, putting further pressure on the deteriorating balance of payment position. In order to enhance exports, analysts say that government needs to resolve a number of issues like: quality, acceptance of professional credentials, visa problems and most importantly the ‘image problem’, which has marred to exploit the major potential in this area.

Daily Times - Leading News Resource of Pakistan

 

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Pakistan, China to bolster defence, energy, trade ties​

* Chinese president describes relations with Pakistan as ‘high priority’​

SANYA: Vowing to enhance co-operation in defence, energy and trade, President Pervez Musharraf and his Chinese counterpart Hu Jintao hoped on Friday that these would be further strengthened as the new government comes into power in Pakistan.

President Hu Jintao described ties with Pakistan as a “high priority relationship”, Foreign Minister Shah Mehmood Qureshi told reporters after the meeting.

He said that the two leaders had discussed co-operation in nuclear energy. Both countries hoped to raise bilateral trade between them to $15 billion, he added.

During the meeting, Islamabad proposed that the two countries could improve connectivity by adding a fibre-optic line, an oil and gas pipeline and a rail track linking the Karakorum Highway to Gwadar.

Musharraf also extended Pakistan’s full support to China for the Beijing Olympics and assured Hu that the Olympic torch relay in Islamabad later this month would be held peaceably.

Following the formal talks, the two leaders witnessed signing of two memorandums of understanding (MoU) and an agreement, one of which seeks to extend co-operation in managing water resources and hydroelectric power.

Following the meeting, Hu hosted a dinner in honour of Musharraf and his entourage, which includes Foreign Minister Shah Mehmood Qureshi and Defence Minister Chaudhry Ahmed Mukhtar.

Daily Times - Leading News Resource of Pakistan

 

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Sugar production all-time high ​

ISLAMABAD (April 12 2008): At a time when majority of the key sectors of the economy is not performing well, sugarcane crop has done extraordinarily by producing all time high 4.365 million tons stock till March 31, and as the mills in northern Sindh and southern Punjab are still operational.

Pakistan Sugar Mills Association (PSMA) hopes that net output would be between 4.5 and 4.6 million tons before ending of the crushing season 2007-08. This is for the first time that Pakistan's sugar production cross 4 million mark. Last crushing season had ended up at 3.5 million tons. Unsold stocks as on March 31, stood at 2.91 million tons, which is again a record.

Historically high sugar production is a good news for Pakistan. Huge production will lift up Pakistan's agriculture crops and to some extent improve overall performance of the agriculture sector, which will be positive thing for Pakistan's economy.

But, the growers, who should have given credit of producing bumper crop, are at the losing end. As they in majority of the cases have not been paid for their produce. Rabia Sultan of Farmer Association of Pakistan (FAP) claims that sugar industry has withheld Rs 40 billion of the growers. Outstanding amount is roughly half of the total money, which is supposed to go into rural economy from sugarcane crop. Despite continuous protest by the growers the payment issue is yet to be resolved, she deplored.

It has become a routine that the government uses the issue as a slogan every year and issues a few statements and then leaves the growers in disarray. Sources said the FAP took the issue at different meetings including one of the sugar board and demanded of the government authorities to take action against chronic defaulters of the growers' payments. The growers after producing bumper crop have been left at the mills owners mercy who by all mean want to make money.

A negative side of the story is that the government's share in revenue from sugar has shrunk considerably. The Federal Board of Revenue (FBR) collected Rs 14 billion revenue from sugar sale against Rs 18 billion of the last year. Lower prices have been reportedly the basic reason of Rs 4 billion less revenue from sugar production.

Business Recorder [Pakistan's First Financial Daily]

 

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Wartsila wins 134 million euro power plant deal ​

ISLAMABAD (April 12 2008): Wartsila Corporation has been awarded a turnkey contract worth Euro 134 million by Nishat Power Ltd, an independent power producer that will supply electricity to the national grid in Pakistan. The power plant will have a total gross electrical power output of 200 MWe, CNBC reported.

The power plant, which will run on heavy fuel oil, is due to be operational by September 2009, and will be located near Lahore. The plant will comprise eleven Wartsila 46 diesel generating sets. It would supply the plant equipment, then erect, test and commission the plant and provide local construction supervision.

A contract to operate and maintain the power plant is also under negotiation. "Our satisfactory experience with Wartsila products and services encouraged us to set up this project with them. Their power plants are fuel efficient, reliable and thereafter, sales support very responsive," said Mian Mansha, Chairman of the Nishat Group.

This power plant to Nishat Group will further strengthen Wartsila's position as the market leader in the supply of private power plants in Pakistan. A total of 1000 MWe of Wartsila power plants are already in service in Pakistan. The Nishat Group is one of the leading business groups in Pakistan with interests in the textile, cement, insurance and banking sectors.

Business Recorder [Pakistan's First Financial Daily]

 

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SME development programme: $12 million ADB assistance to set up four CFCs ​

LAHORE (April 12 2008): The Technology Upgradation and Skill Development Company (Tusdec) will set up four common facility centres, one each in every province of Pakistan, under the Asian Development Bank's 12 million-dollar SME development programme.

This was revealed in a meeting held here on Friday to discuss new initiatives and review the progress of the current ceramics-oriented project being implemented by the company.

The CFCs include Ceramics Complex in Gujranwala and proposed Engineering Support Centres in Peshawar, Hyderabad and Quetta. Manila-based ADB economist Joao Farinha-Fernandes and chief of Core Programme Management Unit, Ministry of Finance Badar Hashmi were also present in the meeting.

Speaking on the occasion, Joao Farinha-Fernandes said that Pakistan would benefit from initiatives such as an electronics complex, Federal Institute of Materials and Homologation and Composite Materials Institute.

He expressed the hope that these projects would be instrumental in accelerating the industrial growth in this part of the world. He said that Pakistan's economy had been very resilient, adding that it did not experience any bust, unlike some other countries of the region. Drawing a parallel between Pakistan and South Korea, Fernandes said Pakistan was trying to catch up with the developed world in the field of manufacturing the way Korea did some years ago.

He also dilated upon the ADB's efforts to support the developing economies of Asia like Pakistan. Giving a briefing on this occasion, Tusdec Chief Executive Officer Suhael Ahmad said that the CFCs, including Ceramics Complex in Gujranwala, Peshawar Engineering Support Centre, Hyderabad Engineering Support Centre and Quetta Engineering Support Centre, would provide technological assistance to the small and medium enterprise (SME) clusters.

He said that the construction of the Rs 314 million ceramics complex, for which land had been identified, would start in July next. He also gave details about the upcoming projects of the company, including Electronics Complex, Federal Institute of Materials and Homologation (FIMH), the Composite Materials Institute, Industrial Technology Upgradation FUnd (ITUF), Industrial Technology Upgradation Policy (ITUP) and Senior Expert Advisory Service (SEAS).

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan taking steps to meet Qatar manpower needs: minister ​

ISLAMABAD (April 12 2008): The Federal Minister for Labour, Manpower and Overseas Pakistanis, Khursheed Ahmed Shah, has said that Pakistan is taking all measures to meet manpower requirements of Qatar as excellent training facilities in technical and professional fields have been evolved.

He stated this while talking to Qatri Ambassador Hamad Ali Al-Hanzab, who called on him here on Friday. The Minister said that Pakistan is ready to offer manpower to Qatar in the categories of IT professionals, engineers, doctors, technical skilled and semi-skilled workforce for the industrial sector and skilled construction workers to meet the requirement of Qatar.

The Ambassador said that Pakistani manpower is rendering service in various sectors of economy of Qatar for the last many years. However, the flow of manpower to Qatar could not be increased during last few years. He said that an agreement on regulation of manpower from Pakistan to Qatar already exist between the two countries since 1987.

"We are now signing the additional protocol, which is to be signed during the visit of Minister of Labour of the State of Qatar to Pakistan in the first week of May 2008." The Ambassador also recalled the tenure of ZA Bhutto during which he played vital role to unite the Muslim Ummah on one platform to strengthening their economy. The Minister expressed hope that new vistas would open for Pakistanis' employment after signing additional protocol with Qatar.

Business Recorder [Pakistan's First Financial Daily]

 

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Minister for devising investment-friendly strategy ​

PESHAWAR (April 12 2008): Provincial Minister for Industries, Syed Ahmed Hussain Shah has asked the provincial Department of Industries for devising a strategy to improve the input of the department and attract investment into the province. He was speaking at a high-level briefing of his department held in the Civil Secretariat here on Friday.

The Minister expressed concern over the low pace of industrialisation and growing number of sick industrial units. He termed sustainable industrialisation and rapid promotion of Information Technology inevitable for a stable economy and strong source to overcome unemployment and lawlessness in the province. He underlined the need for a devoted and serious contribution by the managers of Industries Department instead of frustration and disappointment.

Expressing his resolve to take concrete steps for exploring new industrial investment opportunities in the province, the Minister was of the view that taking benefit of same parties' coalition governments in centre and the province, we should expect positive results of our initiatives within six months.

The NWFP Secretary Industries, Shah Wali Khan and heads of all the sectors of Industries Department attended the briefing and apprised the minister of the objectives, current activities, achievements, policies, revenues, targets and future plans of their respective attached departments.

They also highlighted difficulties involved in their smooth working as well as bottlenecks in industrial development and implementation of industrial laws as well.

The minister was told that a sizeable amount of Rs 3,250 million has been allocated to improve the condition of infrastructure facilities in the existing Industrial Estates, extension thereof, and establishment of new industries at different locations including a China Industrial Estate at Haripur.

While as many as 149 development schemes have been initiated in the industry sector of NWFP at a total cost of Rs 538.298 million. The minister urged the need for an effective coordination and consultation between the Provincial government and the investors.

He said that such proposals would be presented in the next Regional Investment Conference for consideration. Describing the Frontier Province best suitable for investment in mineral, power generation and tourism development, he directed to identify the idol mineral leases and urged the need to enact laws for cancellation of such lease agreements.

About rich potential in upper Hazara, he stressed the need to conduct a feasibility study for setting up a Limestone Zone and a Marble City therein. The minister particularly asked the authorities concerned to explore the opportunities for establishing industrial estates in the remote and hilly areas having potential for small-scale power generation.

Terming the Information Technology wing the most important component of Industries Department, the provincial minister asked the concerned officials to take comprehensive measures to make this section fully functional and beneficial.

Expressing dissatisfaction over the poor condition of technical institutions across the board, he said that certain steps would be taken to strengthen this department after its withdrawal from the devolution structure in the next financial year.

Business Recorder [Pakistan's First Financial Daily]

 

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EFU plans to expand business across Asia ​

KARACHI (April 12 2008): The Eastern Federal Union (EFU) has planned to expand its business activities across Asia. This was stated by Managing Director, EFU, Safiuddin N Zoomkawala at a programme, organised by 21st Century Business and Economic Club at a local hotel on Thursday night. The theme of event was 'How the EFU Group is Made Success Story: A Pakistan Case study'.

Safiuddin said that the EFU was considering expansion of its business circles across Asia and for this purpose EFU's regional offices would be established in Sri Lanka, Maldives, Nepal and Bangladesh shortly. He said that EFU was established in 1932 and is the pioneer of Islamic insurance. He added that the EFU's services cover almost every sector including health insurance, life insurance, Islamic insurance, agricultural insurance, and livestock insurance.

Safiuddin apprised that EFU's annual premium increased up to Rs 14.5 billion and its assets reached up to Rs 50 billion in 2007. He added that the EFU has captured almost 60 percent of market shares with share capital of 1,000 million in last year.

He lauded the efforts of 21st Century Business and Economic Club in highlighting successful business personalities and making people aware of their success stories. A large number of people from every walk of life were present on the occasion.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan and China to sign 16 pacts during Musharraf's visit ​

ISLAMABAD (April 12 2008): Pakistan and China are going to sign 16 framework agreements and Memorandum of Understandings (MoUs) during President Pervez Musharraf's visit for enhancing co-operation in a number of key areas with focus on bringing more Chinese investment in energy sector.

A Memorandum of Understanding will be singed between the Ministry of Water Resources of China and the Ministry of Water and Power of Pakistan.

OTHER AGREEMENTS INCLUDE: Cooperation in the field of management of natural disasters; an agreement on sports co-operation between the general administration of sports of China and Sports Ministry of Pakistan;

A MoU for co-operation on architectural design, research and constructions between CDA and the consortium of China Architecture Design and Research Group and Chinese Academy of Sciences Architecture Design and Research Company Ltd;

Agreement between Ministry of Food, Agriculture and Livestock, government of Pakistan and the Ministry of Commerce, Ministry of Science and Technology, Government of China for co-operation and collaboration for promotion of high efficiency Irrigation system in Pakistan;

Agreement between Ministry of Food, Agriculture and Livestock, government of Pakistan and the Ministry of Agriculture of China on Water Saving Irrigation;

MoU for co-operation in engineering and technical sciences between the Chinese Academy of Engineering of China and the Ministry of Science and Technology of Pakistan; framework agreement for co-operation in the field of information, media and broadcasting between Ministry of Information and Broadcasting, government of Pakistan and the State Administration of Radio, Film and Television of China;

MoU on co-operation in the field of information between Ministry of Information and Broadcasting, government of Pakistan and the State Council Information Office of China;

MoU on financial sector co-operation between Pakistan and China; agreement between the Ministry of Science and Technology of government of Pakistan for establishment of Pak-China S&T Forum;

A framework agreement will be signed for co-operation in the field of minerals between the Ministry of Petroleum and Natural Resources of Pakistan and National Development and Reform Commission (NDRC) of China;

MoU for co-operation in the geological, mineral and energy sector between Ministry of Petroleum and Natural Resources of Pakistan and the government of China; agreement on co-operation in cricket between Chinese Cricket Association, China and Pakistan Cricket Board, of Pakistan and framework agreement on Environmental Protection Co-operation between the State Environmental Protection Administration of China and the Ministry of Environment of Pakistan.

A bilateral agreement will be signed between the Higher Education Commission of Pakistan and the Chinese Ministry of Education for the establishment of University of Engineering, Science and Technology Pakistan (UESTP) including a Technology park.

Business Recorder [Pakistan's First Financial Daily]

 

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Musharraf, Jintao vow to bolster defence and trade: three agreements signed ​

SANYA (April 12 2008): President Pervez Musharraf and his Chinese counterpart on Friday vowed to enhance co-operation in defence, energy and trade, and hoped that these would be further strengthened with the coming into power of a new government in Pakistan.

The talks here at China's southernmost city of Sanya covered a wide range of issues with particular focus on Pak-China bilateral relations, besides discussions on regional issues and international developments. Following the round of formal talks, the two leaders also witnessed signing of two Memorandums of Understanding and an agreement.

These included an MoU between the Ministries of Water and Power of the two countries, and on co-operation in sports. The third was for co-operation in the area of engineering, sciences and technology. President Musharraf and President Hu Jintao had over half an hour long restricted meeting, where the former was accompanied by Ministers of Foreign Affairs and Defence.

Later the two sides went in for delegation level talks that reflected convergence of views on regional and global issues. President Musharraf in his initial remarks termed Pak-China relations as time-tested and broad-based, and added that these have permeated down to the people's level.

The Chinese President described President Musharraf as an old friend, who has visited China eight times in as many years, and said that it was a manifestation of the strategic partnership between the two countries. President Musharraf thanked President Hu Jintao for the cordiality and warmth extended to him by the Chinese leadership.

Earlier, President Musharraf, who arrived here on Thursday night, was presented an impressive formal welcome ceremony at the picturesque Sanya city, in the Hainan province. With the backdrop of Yalong Bay on the South China Sea, a smart contingent of the People's Liberation Army, comprising the three services, presented him a salute. The President reviewed the guard of honour.

President Hu Jintao received President Musharraf and national anthems of the two countries were played. Minister for Defence Ahmed Mukhtar, Foreign Affairs Minister Shah Mahmood Qureshi, Higher Education Commission Chairman Dr Atta-ur-Rehman, Planning Commission Deputy Chairman Dr Muhammad Akram Sheikh and Trade Development Authority of Pakistan Chairman assisted the President during the talks.

China is a major source of investment in Pakistan and has been supporting the country in various sectors, particularly infrastructure development, energy, roads and dams and, in this regard, a Pakistan-China Joint Investment Company has been working since 2007.

Bilateral trade between the two countries has touched $6.8 billion. Pakistan and China signed a free trade pact in 2006 and hope to raise two-way trade to $15 billion within the next five years. Pakistan-China Joint Five-Year Economic Plan was signed in November 2006, and the Free Trade Agreement, operational since last year, has bolstered the economic co-operation between the two countries.

Both countries have maintained long-term exchanges and multi-level co-operation in many areas, particularly defence. President Musharraf's visit is aimed at further promoting exchanges and bilateral co-operation for the development of strategic co-operative partnership of the two countries. Pakistan was the first Islamic country to recognise People's Republic of China on January 4,1950. Diplomatic relations were established between the two countries on May 21, 1951.

Business Recorder [Pakistan's First Financial Daily]

 

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Ministry faces problems in arranging Rs200bn ​

Sunday, April 13, 2008

ISLAMABAD: Owing to the liquidity crunch faced by the domestic market, the finance ministry is facing the most difficult task of arranging over Rs200 billion for making payments to cover oil price differential claims and for the losses incurred by WAPDA and PIA in the current fiscal year, The News has learnt.

The price differential claims (PDCs) owed to oil marketing companies touched Rs123 billion during the current fiscal year and the government is striving hard to arrange financing for them.

“The oil marketing companies may demand a penalty owing to delays in payments of these outstanding bills,” said an official, who is involved in negotiations to arrange financing.

The delayed payments are causing problems for the oil marketing companies. They are threatening to disrupt oil supply to various parts of the country if payments are not made on time.

Secretary Finance Dr Waqar Masood, in the recent past, ran from pillar to post to arrange funds to make the payments on time, but presently, things are not as streamlined as claimed by the high-ups of the finance ministry.

The official said the government has allocated Rs54 billion for providing subsidy to WAPDA during the current fiscal year, however, the losses made by WAPDA, caused by non-implementation of raising power tariff, are over Rs70-Rs80 billion. The total estimate of losses faced by WAPDA is over Rs100 billion, owing to the non-payment of FATA consumers, as that head alone stuck up the payment of over Rs60 billion.

The government had raised power tariff by 9 per cent during the caretaker set-up but the power tariff needs to be jacked up by 80 paisas per kilowatt, as determined by the NEPRA in order to overcome WAPDA’s losses.

Rather than blaming WAPDA for all the ills, the official said, the government should make arrangements to ensure the recovery of arrears from FATA as well as from the public sector institutions in order to achieve a clean balance sheet for the WAPDA.

The cash-bleeding Pakistan International Airlines (PIA) is another source of concern for the budget makers as they allocated Rs14 billion worth of subsidy to the national flag carrier, which proved just peanuts on the face of the yawning deficits being faced by the PIA. PIA losses are mounting to new heights and are likely to touch Rs65 billion by the end of the current fiscal year.

“The government is making efforts to come up with an economically viable solution for PIA, and negotiations are underway with domestic and multinational financial institutions to eliminate the woes of the airline,” said the official.

PIA, the sources said, will have to lay off around 3000-5000 staff workers and rationalize its routes in order to reduce its burden.

This cannot be done without the induction of a professional head of the national flag carrier who, with the complete support of the government should take tough decisions to achieve the desired results.

The Financial Improvement Plan (FIP) to turnaround the national flag carrier, demands immediate attention from the incumbent regime as complete ownership and effective implementation can pull PIA out of its existing crisis.

Ministry faces problems in arranging Rs200bn

 

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Increasing exports only way to overcome trade deficit: minister ​

Sunday, April 13, 2008

LAHORE: Federal Commerce Minister Shahid Khaqan Abbasi has said the increasing exports is the only way to plug the trade deficit as checking it through import restrictions would not be a prudent measure in this regard.

He was talking to the media after meeting with the members of All Pakistan Textile Mills Association. He suggested reducing cost of doing business in areas where competitors have an edge. However, he clarified that the higher costs due to high energy and power rates are global phenomena and impact the cost of doing business.

In his interaction from APTMA Lahore office through videoconference with APTMA members from Sindh and NWFP he asked the members to apprise him about their difficulties and suggest ways to increase exports. He was non-committal on all their queries stating that he is new at the job and would assess the situation after getting input from them and his staff at the Ministry of Commerce. He said that since he is from private sector he would try to address all their genuine concerns.

The textile industry representatives complained that the textile exports from Pakistan are under pressure due to multiple factors. These include low cotton production, as Pakistan has not adopted the new BT cotton technology. They said the cotton production in Pakistan and India was at the same level in 1992, however Indian production has doubled after shift to BT cotton while Pakistan’s cotton production is even lower than 1992 level.

They also demanded RND grant for the spinning sector as all other sectors of textile were getting these subsidies. The APTMA members protested the cross subsidies of Rs30 billion that the industry pays, as domestic and fertilizer sectors are heavily subsidized. They also deplored high electricity tariff. The members urged the government to give preference to the industry over other sectors in continued supply of electricity and gas. The NWFP members deplored higher cost of electricity for NWFP industries than Punjab.

Abbassi assured the members that their point of views would be considered and all genuine impediments would be removed to increase exports. He told the newsmen that the countdown on restoration of judges has already started.

Increasing exports only way to overcome trade deficit: minister

 

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Kalabagh dam not to be built at cost of unity: Pervez ​

Sunday, April 13, 2008

LAHORE: Federal Minister of Water and Power Raja Pervaiz has said that the Kalabagh dam would not be built at the cost of the unity of federating units, adding that the whole project would be reviewed in line with the reservations of its opponents.

He was taking to the media after a lunch hosted in his honour by PPP leaders. He stated that the energy needs of the country are enormous and the government would like to explore every avenue from which power could be generated. However, he clarified that the Kalabagh dam could only be built if all the federating units give their consent.

He said it is unrealistic to think that load shedding can be eliminated immediately. He said electricity production capacity is generated in 30-36 months. He deplored allegations that no power generation capacity was added in the system during last nine years, adding that immediately after assuming power the democratic government has arranged 2000 MW rental generating units that would be commissioned in the next six to seven months. Meanwhile he asked the people to be prepared for eight hours of load shedding during the peak of this summer as the supply of electricity would be 3000 MW less than the demand.

He assured that the menace of load shedding would be controlled within three years, when adequate capacities would be added in the system to plug the supply gap. He said the government would tap every opportunity to generate electricity from the run of river projects, besides establishing wind mills in the Coastal areas of Sindh and Balochistan.

He said the impact of load shedding would be minimised through prudent load management. He said all segments of society would be asked to cooperate with the government in conserving energy. He noted that the Prime Minister would initiate the conservation by installing energy savers in the PM House. He said energy saver bulbs would be provided to the general consumers on subsidised rates.

Later talking to the newsmen, Raja Pervaiz said that he would appeal to the traders to close their shops by 7 p.m. He said a proposal for staggering weekly holidays for industrial and commercial concerns is also under consideration. He stated that Pakistani domestic consumers alone could reduce consumption by 1200 MW daily if they replace all their electric lighting with energy savers.

Kalabagh dam not to be built at cost of unity: Pervez

 

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Dar invites US entrepreneurs to invest in Pakistan ​

Sunday, April 13, 2008

WASHINGTON: Holding out the new government’s commitment to foreign direct investment related policies, Finance Minister Ishaq Dar has invited American entrepreneurs to avail of investment opportunities Pakistan offers in various sectors.

He was addressing members of the US-Pakistan Business Council here at the US Chamber of Commerce and Industries on Friday afternoon.

“The newly elected government in Pakistan will continue the FDI linked policies, which we had introduced and which the previous government continued, obviously there will be continuity in these policies,” he said.

At the same time, Dar added, the government would also strive to improve monetary and fiscal policies.

He informed the entrepreneurs about priorities of the new democratic coalition government and said it had given market economy to the country (in 1990s), introduced foreign direct investment policies as well as various other economic reforms.

“The business leaders said they valued these reforms very much and said a delegation (of US entrepreneurs) will visit Pakistan in the near future,” Dar later said.

The finance minister was optimistic about increased inflow of US investment into various economic sectors as the business leaders showed a keen interest during the interaction.

The members of Pakistani delegation, who are here for World Bank-IMF annual spring meetings, including State Bank Governor Dr Shamshad Akhtar, Secretary Finance Dr Waqar Masood Khan and Pakistan’s diplomat in Washington Muhammad Aslam Khan also attended the meeting .

The Pakistani delegates also took part in G-24 Deputies Meeting at the World Bank where they presented Pakistan’s views on the issue of increase in food prices. On the sidelines of the global gathering of finance leaders, Ishaq Dar also held meetings with his counterparts from other countries.

Earlier, the finance minister had a meeting with the chairman of the US-Pakistan Business Council, Jay Collins, who said the US business community is “optimistic about Pakistan’s future, about continuing to invest and commit long-term to Pakistan.”

Dar invites US entrepreneurs to invest in Pakistan

 

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Work on Basha dam to start in 2009 ​

Sunday, April 13, 2008

LAHORE: The construction work on the Diamer-Basha dam project will commence in 2009 after an international competitive bidding.

The draft detailed engineering designs and tender documents of Diamer-Basha Dam project, submitted by consultants was being reviewed, to be finalised shortly.

This was stated at a briefing to the 37th PN staff Course, Naval War College, Lahore at the WAPDA house on Saturday.

Pakistan is fast heading towards being a critically water-short-country, as per capita water availability has already declined to the alarming figure of 1,070 cubic meters in the year 2007, the delegation was informed.

A country, according to the universally accepted parameters, is declared a water scarce country if per capita availability of water declines to 1,000 cubic meters.

The delegation was briefed that the accumulative gross storage capacity at Tarbela, Mangla and Chashma reservoirs that used to be 18.37 million acre feet (MAF) originally, has now declined to 13.22 MAF due to sedimentation, resulting in 28 per cent loss of storage capacity.

Another 20 million acres of virgin land could be brought under irrigated agriculture if additional water is made available by constructing new water reservoirs in Pakistan.

It was further told that engineering studies of 15 hydropower projects with a cumulative generation capacity of 25,270 MW was being carried out by WAPDA.

PEPCO is striving hard to minimise the gap between consumption and generation of electricity by adopting various short, medium and long-term measures.

Work on Basha dam to start in 2009