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Gwadar women project in doldrums

ISLAMABAD, April 12: An audit report has detected slow implementation, under-utilisation of funds and ineffective coordination between stakeholders in the Rs39.785 million Jafakash Aurat project.

The project was launched in partnership between the Ministry of Women Development and the Khushali Bank for reducing poverty through a micro-credit programme in Gwadar district.

The project started with an objective to enable rural women to supplement their livelihood by creating strong linkage between micro-credit and skill development.

One of the aims was to provide skill and enterprise training to 3,500 rural women and create 2,000 direct and 8,000 indirect jobs through extending micro credit to trained rural women.

Till the completion of audit in April 2007, only 364 rural women were trained and micro credit facility was extended to 25 rural women in the district.

According to the 2006-07 report forwarded to the National Assembly’s Public Accounts Committee, local women were not informed of the opportunities coming up as a result of current development activities in Gwadar.

Focus should have been to understand current development programmes, forecast future trends and link the capital market with local opportunities.

Instead, decision-making was given into the hands of local women who were unaware of future market needs of the Gwadar Port.

The report said that almost 98 per cent women repaid loans, but loans were disbursed without imparting any training to them in the first place.

According to the report, the Ministry of Women Development made an agreement with the Khushali Bank Limited, Gwadar branch, and released Rs21.8 million for execution of the project.

The bank had, however, utilised only 1.165 per cent of the amount.

Due to non-utilisation of funds, the objectives of the project were not achieved.

The report cited non-availability of women staff for non-utilisation of the funds.

The report recommended revisiting training need assessment, conduct impact assessment, charging the correct mark-up, and improving coordination with stakeholders to expedite the disbursement process.

Gwadar women project in doldrums -DAWN - Top Stories; April 13, 2008
 
Growers see 22 million tons wheat output

MULTAN, April 12: The growers and agricultural experts from southern Punjab are optimistic that the country would produce 22 million tons wheat, which would fulfill the required consumption of the country.

The government has set the wheat target of 24 million tons for this season, while last year the country produced the record 23.3 million tons.

Khawaja Muhammad Shoaib of Farmers Vision Forum estimated the wheat production at 22 million tons, 1.3 million ton less as compared to last year. He put the consumption of wheat at 21.5 million tons.

He said that now all the responsibility had been shifted towards the government institutions and if they succeeded in controlling the border and kept an eye on flourmills, a wheat crisis could be averted.

He said that last year due to low prices of wheat, the grain was used as fodder and in the preparation of poultry feed, which was also a factor for last year’s wheat crisis.

Malik Manzoor Jauta a progressive farmer from District Layyah said despite the harm done to the crop ready for harvesting by inclement weather, he was optimistic that the quantity of wheat would be sufficient for the district as compared to the last year.

He said that last year the price of husk increased to Rs150 per 40 kg and the people preferred to use the wheat as fodder and in making poultry feed.

He said that the farmers were unable to store the crop because they have not godowns and they would ultimately sale their crop to the government.

He said that the farmers would be forced to sell their crop to the government because the private sector has not yet become active in the district to purchase the crop. There was a strong possibility that the government institutions would succeed in achieving their target, he said.

He said that if the private sector came forward to purchase the crop, farmers would prefer to sell wheat to them.

Former president PPP Kisan Wing, Muzaffargarh, Dr Suhail Alam said that last year the government agencies in the district failed to achieve the procurement target and it seems that it would be very hard for them again this year.

He said that the district could face 15 to 20 per cent deficiency in crop production due to delay in sowing, increasing trend of sugarcane cultivation and rapid increase in inputs prices.

He said that the cold climate and rains were a blessing in disguise at a time when the farmers were facing difficulties due to the shortage of irrigation water.

He said that government should take the wheat issue seriously and should monitor the performance of its agencies because their irregularities have created distrust among the farming community.

Growers see 22 million tons wheat output -DAWN - Business; April 13, 2008
 
Investment in ISE up by 66.59%

ISLAMABAD: Although the Lahore and Karachi incidence that in return affects the stock market but over all the volume in ISE recorded a tremendous increase of 64.59 percent in the out going week as compared to last week. The political reconciliation process particularly in Karachi have been positively taken by the investors of capital market and invested more in the capital market. However, the ISE-10 remained negative on April 7 to April 10 and observed bullish sentiments in the outgoing week.

Analysts said the market would further improve with the passage of time. Total volume of transactions at ISE has been increased by 64.59 percent and reached to 15.577 million shares and it was 9.464 million shares last week, showing a net increase of 6.113 million shares. The Islamabad market remained negative for three days and positive on April 8 and April 11. The maximum transaction in the outgoing week were recorded on April 9 when the market at ISE reached to 4.202 million shares when the ISE-10 index dropped by 7.03 points to close at 3269.19 points from 3276.22 points.

Daily Times - Leading News Resource of Pakistan
 
10.45 percent rise in oil products consumption in nine months

KARACHI (April 13 2008): Petroleum consumption in the country increased by 10.45 percent in the first nine months' period of the current fiscal year FY08 to 13.85 million tons against 12.54 million tons of the corresponding period in FY07.

The consumption of two of the major white oil products, Mogas and high speed diesel (HSD) were leading the growth path by rising consistently, posting a growth of 30.5 percent and 14.5 percent, respectively. The combined volumes of the these two major drivers of the POL consumption growth were 7.06 million tons in 9MFY08 from 6.05 million tons in 9MFY07 due to resuming Mogas demand amid reduced smuggling of the Iranian products, Khurram Schehzad, an analyst at Invest Capital & Securities, said.

High speed diesel volumes were on the rise due to increased utilisation in generators due to acute shortage and electricity breakdowns being observed. Along with Mogas and HSD, other white oil products--HOBC & Kerosene--also witnessed higher volume growth of 14.4 percent with 8.05 million tons of volume against 7.03 million tons last year, than black oil (FO & LDO) which posted growth of 5.41 percent with 5.80 million tons in 9MFY08 against 5.50 million tons in the same period last year.

He said that Mogas and HSD were main drivers of overall POL consumption growth during the period (black oil's contribution to the rise became stagnant). It was witnessed from the fact that, in volumetric terms, black oil contributed only 23 percent to the total volume increase during 9MFY08 whereas Mogas's and HSD's proportions to the total volume increase were 19 percent and 58 percent (77 percent combined).

Furnace oil growth of 5.7 percent came on the back of Wapda and other IPPs' increased demand due to reduced gas supplies to power plants during the period (slower growth amid 47 percent steep rise in its price during July-March, 2008 while 76 percent on YoY increase).

The consumption of POL products during March recorded decent growth of 12.53 percent mainly driven by Mogas (24.2 percent) and HSD (19 percent on YoY basis). Black oil recorded a growth of only 4.9 percent YoY (5.7 percent for FO and -43.7 percent for LDO) on YoY basis during March-08 amid sharp decline in LDO consumption due to changing weather patterns, ending Kharif season, and low agricultural activities due to elections' lag impact.

Mogas consumption has been climbing, despite its greater price differential with its alternatives like CNG and LPG, on the back of minimised Iranian smuggled oil products, rising number of vehicle, greater hassle and increased waiting time at CNG filling and HOBC volumes replaced by Mogas due to HOBC's increased price differential with it.

In addition, kerosene utilisation was also on consistent rise amid frequent electricity breakdowns in the remote areas of the country and its 100 percent usage in JP-8 production. JP-1, on the other hand, has been showing continuous decline (due to the assumed shortage of the product, erratic and limited supply from refineries because of the capacity constraints).

Whereas, HOBC revealed a YoY decline of 26 percent in March-2008 due to increased end-consumer prices and larger differential with Mogas. JP-8's exports also settled higher at burgeoning 89 percent in 9MFY08 on the back of increased Defence-related activities in the neighbouring country.

Only PSO's market share improved considerably to 76.9 percent during 9MFY08 against 66.9 percent in the same period of last year due to punching in extraordinary growth in three major products - FO with 22 percent YoY, HSD with 33 percent, and Mogas with 54 percent growth during 9MFY08.

PSO posted 26.4 percent growth in volumes during 9MFY08. Shell stood with improved 15 percent market share, up from 14.1 percent with significant volumetric growth of 17 percent YoY based on HSD and Mogas growth of 16 percent and 27 percent on YoY basis, respectively. APL lost 30bps on YoY basis in its market share from 5.8 percent in 9MFY08 to 5.5 percent during 9MFY08 while recorded a POL volume growth of 4 percent on YoY basis during 9MFY08.

"The reason for this decline in APL's share was 40 bps fall in furnace oil market share during March with 8 percent decline in its volumetric growth (as APL is the second largest provider of FO which constitutes 56 percent weight in the overall POL product volumes)", Khurram said.

He said that the summer season with expected greater power breakdowns would wake the need of increased FO and HSD demand for IPPs and household generators. On the other hand, Mogas and Kero consumption has already kicked up.

However, Mogas's consumption may slowdown due to expected widening of its price differential with the alternates (CNG and LPG), as GoP may continue passing on the oil price increase in international market to the end-consumer. "Therefore, we expect full-year demand growth to range between 12 percent to 14 percent for POL products", he added.

Business Recorder [Pakistan's First Financial Daily]
 
Delayed sell-off of PTCL costs exchequer $6 billion

ISLAMABAD (April 13 2008): The Auditor General of Pakistan has pointed out that delayed privatisation of Pakistan Telecommunication Company Limited by successive governments caused $6 billion loss to the exchequer. The AGP in audit report for 2006, laid before the National Assembly, observed that according to financial experts and analysts, PTCL's value plummeted from $8 billion to $2 billion.

The government could have fetched higher proceeds in the competitive environment in telecom sector in the 90s besides saving substantial financial and human resources consumed in the lengthy process, it added. The process of PTCL privatisation started in 1991 with a target date of mid-1993, which was later extended to June 1996.

The Privatisation Commission contended that the process was delayed without any plausible reason. Moreover, the revised agreement on March 12, 2006 also cost the government 50 percent of Voluntary Separation Scheme i.e. $50 million for operation and maintenance by Etisalat. The government also pledged to provide clear titles for properties currently under possession of PTCL with permission to sale as well as receiving proceeds from such sale.

The revised Share Purchase Agreement (SPA) and Shareholders Agreement (SA) also reduced per price share from the said value of $1.96 to $1.27 with total impact of $914.940 million as per the PC documents but the independent financial and economic analysts say it was more than $1 billion.

The government instead of allowing major modification in the original bid offer should have terminated the contract and confiscated the bidding amount under the rules, according to the audit report.

FLAWS IN VALUATION: The AGP said as per clause 34 of PC Ordinance 2000, the valuation of property shall be performed, in the prescribed manner, by independent valuers who shall issue a valuation report to the Commission.

The audit is of the opinion that Net Asset Valuation (NAV) methods should have been employed in the case of PTCL in order to ensure that GoP gets full value out of underlying assets.

But it was observed that no attempt was made to ascertain the NAV of PTCL probably due to the weaknesses in accounting records and systems. Moreover, audit is sceptical regarding objectivity and reliability in the valuation of entity as the consortium has basically relied on the assumption and parameters provided by the PTCL without carrying out technical evaluation. It said that rescheduling of payments contrary to provisions of terms and conditions of bidding document having substantial financial implications have raised questions on transparency and fairness of the whole process.

Business Recorder [Pakistan's First Financial Daily]
 
India plans to double cement imports from Pakistan: ban likely on steel exports

NEW DELHI (April 13 2008): Indian Trade Secretary G.K. Pillai has said India is aiming at doubling cement imports from Pakistan to 4,000 tonnes a day, and added the ban on cement exports by the government could help meet the demand-supply gap.

"When there is a shortage, why allow exports? We are going to double imports from May," he told reporters after a business conference on Saturday. India allowed duty-free import of cement from Pakistan in 2007, as domestic firms like Grasim Industries Limited, UltraTech Cement, ACC Limited and Ambuja Cements Limited are running almost at near full capacity and cannot match the growing demand in near future.

Indian firms plan to add another 100 million tonnes in capacity by 2010 at a cost of 400 billion rupees. "This would ease the pressure on prices," Pillai added. India's cement output grew by 7.5 percent from a year earlier to 151.24 million tonnes during April-February in the 2007-08, of which exports were at 3.33 million tonnes, according to industry body, Cement Association of India.

Meanwhile, Trade Minister Kamal Nath told reporters after a business conference on Saturday India had banned export of cement from Friday and was considering a similar move for steel, confirming that the government aimed to calm inflation that leaped to a three-year high level.

"We have issued a notification on Friday night, banning export of cement," Kamal Nath said. He said the cabinet ministers, scheduled to meet next week, and would also debate on a proposal to ban steel exports. India's headline inflation raced to an annual 7.41 percent in late March, its highest since November 2004, due to higher prices of food and metals, the government data showed on Friday.

Over the last few weeks, the government has cut duties on edible oils, banned export of non-basmati rice and withdrew export incentives for cement and steel to increase local supplies and tame inflation.

Policymakers also contemplate an upward pressure on cement prices, as demand outpaces supply in Asia's third largest economy that is scaling up its creaky infrastructure at a cost of 500 billion dollars to sustain an average annual growth of nine percent until 2012. "India is growing by 8-9 percent. I largely see this momentum continuing," Nath said.

Business Recorder [Pakistan's First Financial Daily]
 
'Government to reduce deficit by increasing export'

LAHORE (April 13 2008): The trade deficit has reached to 14 billion dollars and the government has chalked out a comprehensive plan by increasing export to bridge the gap in trade deficit. "The principle of devaluation of money will not be followed to decrease it.

The business community and trade organisations will be consulted to get first-hand information before the government spells out its final trade policy," said Federal Minister for Trade Shahid Khaqan Abbasi at the Lahore office of All Pakistan Textile Mills Association (Aptma), on Saturday.

He said that textile sector would be taken into confidence and their opinion would be given priority before finalising the trade policy by the ministry of trade. He said that 25 percent increase in the prices of palm oil and petrol at the international market was the basic reasons for trade deficit.

He said, "There is royal road to bridge the trade deficit, which is increase in export. By increasing the export, the country can be saved from the huge trade deficit," he added. The minister said that the short and medium-term policies would be made to control the deficit.

All Pakistan Textile Mills Association Chairman Akbar Sheikh said the textile sector was playing vital role for the progress of the country and providing employment to the masses and government should pay heed to the sinking textile sector.

He suggested that textile export should be zero-rated and two percent income tax on the export of textile commodities should be waived because it would help to enhance the export as well as to decrease the trade deficit. Akbar Sheikh further said that entire textile chain should be declared tax free export industry.

Former Aptma president Shafqat Ellahi Sheikh said that manufacturing sector of various industries are badly suffering due to energy crisis and constant power load-shedding in the country. To eradicate sorrows and suffering of the manufacturing sector, the government should give top priority to the provision of uninterrupted smooth supply of power to the manufactures, he added.

Business Recorder [Pakistan's First Financial Daily]
 
Need to capture minimum one percent world trade: Ishrat

ISLAMABAD (April 13 2008): Pakistan's economy is worth 150 billion dollars, hence there is a need to capture at least one per cent of the world trade. This was stated by former Governor of State Bank Dr Ishrat Hussain, while addressing the participants of a seminar on "mainstreaming development issues in Pakistan's trade policies," jointly organised by Sustainable Development Policy Institute (SDPI) and Foreign Trade Institute of Pakistan here on Saturday.

Dr Ishrat said that trade had become a powerful means for a country's economic and social development. By increasing its share in the +world trade, Pakistan could enhance its trade volume with China up to 12 billion dollars, he added. Referring to the annual report of the FTIP, he said that it provided a proof that trade and development were interlinked.

Dr Sohail Malik of Innovative Development Strategy (Pvt) Limited, speaking on the occasion, asked the government to review the entire policy framework to integrate different aspects of trade, development and investment, and called for a clear national strategy.

He said that there was a need to bridge the gap between policies and their implementation. He regretted that the existing trade policy had become hostage to fiscal and monitoring space, while the state of domestic commerce was extremely poor.

He stressed the need for promoting knowledge-based education to excel in engineering and technology to earn the fruits of comparative advantages, adding that the production cycle changes with reaping of the benefits of comparative advantage.

He advised Pakistanis to move in information technology (IT) direction like Indians and get benefit from services sector, which was 53 percent of our economy. He lamented that even Vietnam and other so many countries had made rapid progress than to Pakistan by properly utilising their potentials.

He urged Pakistan to get united and work for the development of the country, lamenting that the mindset of not wishing to compete and lack of confidence as two main problems of Pakistanis. He urged host organisations to concentrate on empirical research.

Speaking next, Director General of Foreign Trade Institute of Pakistan Dr Abid Suleri observed that Nairobi-based United Nations Conference on Trade and Development had no powers to implement its decisions, and said Pakistan, along with other developing countries, should adopt a collective position instead of symbolic position in the UNCTAD.

He said that our national policies needed genuine reassessment, development of competitiveness and parallel governance mechanisms to support the high growth. Dr Safdar Sohail stressed the need for evolving effective co-ordination and implementation mechanisms to use the trade policy for the development of the country.

Dr Sajjad Akhtar of the Centre for Research on Poverty Reduction and Income, urged Pakistan to invest in competitiveness, adopt strategic trade policies, restore a focus on agriculture, combat joblessness, prepare a new tax regime, maintain stable exchange rates, persist with multilateralism and co-operation with neighbours to mainstream the development with the trade policy of Pakistan.

KASB Bank Chairman H. U. Baig said that growth had to be supported by other policies and mechanisms, in addition to a strong implementation and co-ordination mechanism in place for policies, and also suggested formation of a cabinet co-ordination committee for this purpose.

Syed Hasan Javed of Ministry of Foreign Affairs and Syed Irtiqa Ahmed Zaidi of Ministry of Commerce shared Pakistan's perspective and positions in the United Nations Conference on Development (UNCTAD), a UN forum which was formed 44 years ago, to debate the trade and development related issues of member countries.

Teepu Sultan of Trade Development Authority of Pakistan (TDAP) differed with the perception whether there existed any nexus between trade and development, adding that the role of UNCTAD should be the capacity building, human development and food security of the member countries than to support for export-oriented policies.

Other experts called Pakistan to review its domestic trade policy framework to integrate different aspects in it and also bridge the gap between policy and implementation to capitalise its comparative advantages in the era of competitiveness under globalisation.

Business Recorder [Pakistan's First Financial Daily]
 
Malakand-III power project to start functioning soon

PESHAWAR (April 13 2008): NWFP Minister for Irrigation and Power Mohammad Hamayun Khan has said that Malakand-III hydropower generation will start functioning soon. He said the project would prove a milestone in the development of Malakand.

Addressing various delegations from Sakhakot, Dargai, Piran, Batkhela, Thana, Palai and other areas of Malakand, which called on him at his Jolagram residence in Malakand on Saturday. The minister disclosed those small hydel development projects had also been under study in Malakand Agency, and added work on these projects would be was to be initiated very soon.

He said after completion of the feasibility studies on the small power projects, the area would be given bulk of power share and there would no load shedding. He said that the new government had announced its priorities in which the most important was the restoration of peace and ensuring social development.

The Irrigation Minister said the people had seen a democratic era after decade-long dictatorship and the PPP-ANP joint coalition had established a solid mechanism for ensuring durable peace in the province, particularly in Malakand division.

Hamayun Khan regretted that due to wrong policies, the NWFP in general and Malakand division in particular was converted into a war zone. He said the region would once turn into Switzerland of Pakistan and a global tourists resort.

He said the military operations there turned the region economically more backward. The Irrigation Minister said he would fully honour the mandate of the people and had devised a well-conceived strategy with the officers of the irrigation and power departments to provide basic facilities like roads, drinking water, power, health and sanitation etc.

He said he had directed the authorities concerned and they were preparing feasibility reports regarding dozens of developmental projects in the irrigation and power sector. Meanwhile, a big delegation of Piran, consisting of Pir Azeem Shah, Pir Suleman Shah, Pir Sher Ali Khan, Pir Haimen Shah, Pir Daud Shah, Pir Sultan Room and Khurshed, also called on the minister, and felicitated him on his becoming the minister. The assured of their full support to Hamayun Khan.

Business Recorder [Pakistan's First Financial Daily]
 
Keti Bunder: dredging cost and connectivity

(April 13 2008): The newly elected Prime Minister of Pakistan in his opening speech promised to give nation a new Port Keti Bunder along-with 100 days priority agenda. It is a welcome sign for all Pakistanis in particular for seafaring community and Maritime professionals.

Port Qasim was also conceived in the 70's and it is likely to turn into Industrial Hub Port by 2020.Whilst, Port Qasim is helping the nation but it is seriously effected by silting due to be in the proximity of Indus Delta and South West Monsoon. The annual maintenance dredging cost runs into 1 billion rupees to maintain 11.0 meter draft.

The plans are on way to deepen the port to 14 meter, costing about $140 million. Present annual dredging BOQ is 5 million cubic meter and when dredged further, it is estimated that annual maintenance dredging will be around 10 mill cu meter thus costing in excess of 2-3 billions rupees to maintain the desired depth.

When Port Qasim was conceived ie returning to old medieval site of Indus River Port Dewal, which was conquered by Mohammad in Qasim ( A History of Indus by J.C. Powell, A Voyage on Indus by Alexander Burnes 1831).

The initial planners and hydrographers at the time of conceiving the port faltered and could not rightly estimate the annual maintenance dredging quantum and cost which was far low comparing as of today's 5 per $ per cubic meter and cutter dredging cost of $20/- per cubic meter.

Furthermore channel is 40 km with sharp bends restricting night navigation, when compared to Karachi and Gwadar of 3.5 km, where vessel can berth/sail 24/7/365. Time is money for ships and ship owners of today and economy of scale is the key to profitability, thus deep drafts are required. Non availability of night navigation for deep draft and long channels are considered as dis-advantage in port planning.

It is presumed that planners of Keti Bunder must have studied the geological history of Indus Delta, coastal hydraulic survey, currents, littoral drift, hydraulic model studies, coastal geomorphology, Alexander Burnes surveys of river Indus and earthquake epic centre and geologic structure of indus basin whilst carrying out hydrographic survey, wave patterns, forming of breakers in monsoon and the coast being low and not discernable except at close quarters for the safety of navigation.

Whilst referring to Indus Delta Map Keti bunder is approachable via Hajamaro creek, which runs beyond Ghora Bari. Since no hydrographic and other studies are available which were carried out in last decade, it could be any body's guess that how much dredging will be required to meet today's generation vessels of 14/16 meter draft and thereafter quantum of annual maintenance dredging to maintain the channel.

It is presumed that a proper feasibility by competent hydragraphers and port consultants be carried out evaluating dredging and maintenance cost bearing in mind high cost at port Qasim. The other aspect to be borne in mind is excellent hinter land connectivity before port is built.

We must learn from the experience of Gwadar Port, which is handicapped due to non existent hinterland connectivity. It is imperative that hard core professionals having experience of Port development may be engaged and this assignment of national importance may not be left at the mercy of generalist having no track of maritime faculty.

We must also learn from the experience of dredging cost at Port Qasim and that of our neighbours ie India, Bangladesh and Thailand etc. The Hoogly river has silted Calcutta Port thus forcing development of new port of Haldia at the mouth of Hoogly, Bombay offshore port, Colombo south port, Chittagong offshore port at Juldia, so has been the case in Bangkok, where new Port has been developed at the mouth of the river to cater deep draft vessels of 4th and fifth generation.

The next generation vessels are post panamax needing 16/18 meter depth and futuristic vision is Suezmax, Malaca Max of 21 meter, thus in all probability a site which is prone to heavy siltation being in Indus Delta costing billions in dredging and thereafter incurring annual maintenance dredging cost of billions, may only be considered after hydrographic surveys and financial feasibility to cater deep draft vessels of future.

We, must have more ports to develop the region and to cater our futuristic needs. Port development is a science and all issues have to be addressed professionally to cater the futuristic development in the maritime industry.

India has 12 major ports and 185 small ports and they are investing $15 billion in port sector and $12 Billions in developing quadruple triangle ie logistics connecting all major city's to cater 1 billion tons of Impo/Expo by 2010.

It is a welcome announcement, however a proper latest feasibility be carried out bearing in mind that it may take 10 years to port be operational from the drawing board, thus ships calling after a decade and their specification be bench marked to make a success story for our future generation.

Since a policy statement has been made thus same must be duly supported with credible latest studies, thus it is expected that the democratic government will make all plans public and will consider the views of local expertise available in selection of site.

Needless to mention as per historical fact the Indus River had many ports in the past ie Patala, Debal, Lahori Bunder, Shah Bunder, Gharo, Keti Bunder, Vikar, Daragi and Bambhore, these ports were destroyed due to the ravages of Indus River or by the change of its course, thus we must learn from the history and a very scientific and cautious approach is recommended in selecting the site of new port.

Meantime, we must concentrate to make new commercial port Gwadur fully operational and optimum utilisation of Karachi and Port Qasim. It is equally important to do traffic fore casting and our needs for 25/50 years.

Business Recorder [Pakistan's First Financial Daily]
 
Smuggling of urea to Afghanistan on the rise

ISLAMABAD (April 13 2008): Smuggling of urea to Afghanistan is on the rise from different border points but Chaman and Mohmand Agency are said to be much notorious in such activities where concerned administration and security official are completely backing the smugglers, well-placed sources in the Minfal told Business Recorder.

"We are receiving a number of complaints from certain quarters, intimating that huge quantity of urea is being smuggled to Afghanistan every day via Chaman and Mohmand Agency," the sources quoted one of the Minfal officials as saying. The official has written a letter to the Interior Ministry on Saturday, intimating the high-ups about the situation.

Pakistan produces around 90 percent of urea for its local consumption while remaining 10 percent is imported from different countries for meeting domestic needs. The government pays huge subsidy to urea manufacturers to keep the prices within the reach of growers. Consequently, the government was losing huge revenue on account of illegal fertiliser trade.

Minfal, in its letter to the Interior Ministry, has proposed that necessary instructions to all the relevant agencies be issued, asking them to take all possible effective measures to stop fertiliser smuggling.

The issue of urea smuggling has also been taken up by flour millers, who say that besides wheat and flour, huge quantity of urea and other fertilisers were also being sent to Afghanistan through illegal means.

Political Agent of Mohmand Agency issues permits of 300 fertiliser bags for the agency every day. Most of the bags were being smuggled to Afghanistan in connivance with the Khasdars through buses, the sources said.

An official who requested not to be named confirmed that 50-60 buses, carrying 10,000 to 20,000 urea bags were being smuggled to Afghanistan via Chaman whereas 50-60 fertiliser trucks were crossing the border via Mohmand Agency.

Flour millers have proposed to Minfal that the powers to issue quota of urea and other fertiliser by the Mohmand Agency PA having nominal consumption should be withdrawn.

Moreover, FC pickets must be established at the appropriate points to stop smuggling of urea and other fertilisers to Afghanistan, the sources quoted millers as suggesting the Interior Ministry.

The sources said that the Federal Board of Revenue has issued a notification, which says that joint teams of all the concerned agencies would monitor and control smuggling of wheat and other commodities to neighbouring countries especially Afghanistan.

They said, the Economic Co-ordination Committee of the Cabinet, which met a few days ago with Prime Minister Yousuf Raza Gilani in the chair, had expressed serious concerns over the smuggling of wheat and flour to Afghanistan. "The ECC has directed the authorities to take strict measures to control smuggling to Afghanistan," the sources concluded.

Business Recorder [Pakistan's First Financial Daily]
 
India-Pakistan to resolve IPI tariff issues

ISLAMABAD — Pakistan and India have decided to resolve their differences over tariff and transit fee for the proposed Iran-Pakistan-India (IPI) gas pipeline project by holding talks in Islamabad on April 16-18.

Later the petroleum ministers of both Pakistan and India would meet on April 23 of this month to finalise the issue. Informed sources said on Thursday that technical teams of both the countries would meet to firm up their recommendations to be placed before the petroleum ministers of Pakistan and India who were scheduled to meet in Islamabad on April 23, 2008.

Both sides had earlier resolved their differences over the transportation fee and they now were focussing on tariff and transit fee issues for the Iranian gas to be transported to India through Pakistani border.

An official of the ministry of petroleum and natural resources when approached said that both the technical level and ministerial level talks were very important to finalise their talks on gas pipeline project after which further meetings will be lined up with Iran in May.

'Iranian side will be briefed next month about the outcome of talks between Pakistan and India', he said hoping that all the 'lingering issues' will be sorted out within this month between the two countries over the gas pipeline project costing $5.4 billion.

The official also said that both sides would also discuss issues concerning $6 billion, 2000 Km Turkemenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. "TAPI is a parallel project that India and Pakistan are also discussing simultaneously," he said.

The Asian Development Bank (ADB), he said, is expected to invite the officials of all the all the four countries in the third week of this month to revive their dormant TAPI gas pipeline project to ease the energy crisis in the region.

However, there still existed various challenges to the TAPI project. They said the security situation in Afghanistan and relations between Pakistan and India need to improve and fuel subsidies in the two countries have to be phased out.

The TAP gas pipeline of 56 inch diameter needs at least 30 billion cubic meter (BCM) of gas per year from Turkmenistan to reach Pakistan via Afghanistan.

Sources also said that senior Pakistani officials have been informed by Iran that it has sorted out 40-50 per cent 'logistic issues' to undertake the work on Iran, Pakistan and India (IPI) gas pipeline.

Pakistan was told that Iran has asked India to join the project without caring for the opposition of the United States. India conceded that while it continued to face pressure from the United States 'not' to join the project, it cannot ignore its increasing gas requirements and that it was still interested to 'pick up substantial quantities of gas from Teheran'.

Pakistan had also asked Iran to enhance gas volumes for Islamabad by 50 per cent under the pipeline project in case India stays away from the trans-national deal.

Pakistan would soon be making a formal request to the Iranian side to allocate an additional volume of 1.05 BCFD (billion cubic feet of gas per day), to Pakistan in case India does not join the project.

Originally, Pakistan was to get a total of 2.1 BCFD of gas from the 2600-km Iran-Pakistan-India pipeline project and India was to receive 3.2 BCFD, making total to 5.3 BCFD. The pipeline length will come down to about 1600-km, resultantly reducing the project cost, in case India decides to stay away. Gas volumes to Pakistan would, therefore, increase to about 3.2 BCFD.

Sources also said that in the absence of both Iran and Turkmenistan gas pipeline projects, the government has started working on another project to meet its growing gas requirements.

Khaleej Times Online - India-Pakistan to resolve IPI tariff issues
 
Pakistan's trade gap narrows to $2.03b in Feb

ISLAMABAD — Pakistan's trade deficit narrowed to $2.03 billion in March from $2.104 billion in February, but remained almost double the year ago level, a commerce ministry source said yesterday.

The deficit stood at $1.09 billion in March last year.

Exports stood at $1.78 billion in March this year, up from $1.52 billion in March 2007. Imports increased to $3.82 billion compared with $2.62 billion in the same period last year.

The Federal Bureau of Statistics has yet to release the figures officially.

Trade deficit for the first nine months of the fiscal year 2007/08 to March reached $14.48 billion, almost $1 billion more than for the whole of 2006/07 (July/June), according to the official.

For the July-March period, exports were worth $13.47 billion against $12.43 billion in the corresponding period of last year.

Imports increased to $27.96 billion against $22.42 billion imports in the same period last year.

The full breakdown of trade for March was not available, but in the July-February period finished good exports, including sports, leather and surgical items, was up 33.68 per cent to $2.21 billion and food exports increased by 9.36 per cent to $1.36 billion.

Cotton and textile exports, that account for nearly 60 per cent of Pakistan's exports, fell by nearly 3 per cent to $6.83 billion in the first eight months of the year to February.

Textile traders say rising input costs and low production of domestic cotton are eroding competitiveness.

Imports of raw cotton and other textile products posted the heaviest 62.97 per cent increase to $1.60 billion in July-February period.

Petroleum products imports were up 33.68 per cent to $6.33 billion from $4.74 billion in the first eight months of the 2007/08 fiscal year. Pakistan, which produces just over 65,000 barrels of oil a day, relies heavily on imported oil.

Khaleej Times Online - Pakistan's trade gap narrows to $2.03b in Feb
 
Pakistan, 35 other states face shortage

WASHINGTON: The world’s financial experts, now meeting in Washington, have placed Pakistan on a list of 36 countries that face a serious food crisis, warning that if the situation worsens people may raid storage facilities for food.

Reports distributed at the World Bank’s spring meetings noted that “in Pakistan and Thailand, army troops have been deployed to avoid seizing of food from the fields and from warehouses”. India, Egypt, Indonesia, Peru, Haiti, Burkina Faso and Mauritania are also on the list of countries where food shortage has already led to deadly riots.

The reports, prepared by various agencies affiliated with the World Bank, sited “insecurity and past floods” for food shortages in Pakistan, adding that it’s among the 36 countries that need immediate external assistance to prevent further deterioration.

Most of the countries on this list -– except India, Pakistan, Bangladesh and Afghanistan -– are in Africa and are among the poorest in the world. But a World Bank report also noted that wheat crop prospects for 2008 in Pakistan are quite good. Current indications suggest that the 2008 output may equal last year’s crop. The report, however, said Pakistan did not have a widespread social assistance programme targeting the poorest of the poor.

Pakistan, 35 other states face shortage -DAWN - Top Stories; April 14, 2008
 
Pakistan, China working on transit trade accord

BEIJING, April 13: Pakistan and China have made substantial progress in their talks to work out a transit trade agreement and expand the scope of a free trade agreement, besides identifying new areas of cooperation to strengthen their multi-faceted ties.

The talks, held between President Pervez Musharraf and the Chinese leaders, including President Hu Jintao and Prime Minister Wen Jiabao, have made a significant headway on a host of issues.

The president, who arrived in Beijing after attending the annual Boao Forum for Asia and holding talks with President Hu Jintao in Sanya, in Hainan island, met Prime Minister Wen Jiabao at the Prime Minister Office on Sunday.

The two leaders reaffirmed their resolve to further strengthen their ties in all spheres. President Musharraf said he was in China to see its progress and rapid development.

“We rejoice the success, achievements and progress of China that remains our time-tested and all-weather friend,” President Musharraf said.

Prime Minister Wen Jiabao said the visit of President Musharraf would further promote the friendly relations between the two countries. He said the two leaders had had several meetings over the past several years that signified excellent relations between them.

Foreign Minister Shah Mahmood Qureshi told APP that in several rounds of talks the two sides had also discussed the need for adopting ‘corrective mechanism’ to offset their trade imbalance.

He said the two countries had agreed on a five-year trade and economic development plan, and the projects falling in this category would get concessionary credit.

Both the countries also identified several new areas where they can extend cooperation through the already existing mechanism.

Pakistan and China signed a free trade pact in 2006 that covers goods and investments and are looking at ways to add the segment of trade and services besides raising the two-way trade to $15 billion much before the stipulated time.—APP

Pakistan, China working on transit trade accord -DAWN - Top Stories; April 14, 2008
 
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