Pakistan Economy - News & Updates - Archive

[Neo]

‘Ban on rice export to hit farmers’ ​

Thursday, April 17, 2008

ISLAMABAD: The government’s intervention at any level in rice trade will not only shatter the confidence of exporters, but also ruin domestic trade, a leading Basmati grower has warned.

“It will ultimately hit the growers as a ban on the export of the commodity will only serve the interest of a lobby,” Basmati Growers Association President Hamid Malhi said by telephone from Lahore when contacted to comment on the issue.

The federal government is being advised to ban the export of rice, likewise India, in order to stabilise its prices in the local market and also make it available in abundance.

Pakistan’s rice exports have been rapidly going up for the last two years, and this year the exporters are expected to achieve the $1.3 billion target one month before the close of fiscal 2007-08 in June.

“The government can only ban export of one staple food at a time and it has already restricted the export of wheat and banning rice is out of question,” said a senior government official.

“It is a foreign exchange earning commodity and if a ban is imposed, traders will lose the market, which they have grabbed after the withdrawal of major regional countries,” the official said, adding the government should export rice other than coarse varieties.

About the Indian ban on rice exports, the official said “rice in India is a staple food while in Pakistan wheat is the staple food.”

The farmers would be deprived of the benefits, which the traders had reaped during the last eight months as the average price of the commodity rose gradually from $641 per tonne in July last year to over $880, Malhi anticipated.

About the ban, he said it would not benefit the consumers as well as prices would stay at higher levels due to smuggling and high rates in neighbouring countries.

He warned that the farmer community would be the hardest hit from the ban on rice trade and next in line would be the domestic trade and ultimately the consumers.

“It is a conspiracy to create a mess in the transparent and independent rice trade,” he said, adding ample stocks at the local level were available to feed the population and also for exports.

Pakistan is expected to export rice worth $1.5 billion in 2007-08. Out of 5.5 million tonnes of rice production during the year, three million tonnes would be available for exports. Apart from exportable quantity, the current year’s rice crop would be able to meet the domestic requirement of 2.5 million tonnes. —AM

‘Ban on rice export to hit farmers’

 

[Neo]

Govt plans to export 3m tonnes rice this year​

ISLAMABAD: The government is planning to export 3 million tonnes of surplus rice during the current financial year of 2007-08, earning a precious foreign exchange of $1.8 billion.

“Total exportable surplus from 2007-08 rice crop is estimated at 3 million tonnes”, Qadir Bux Baloch, agriculture development commissioner told APP here on Wednesday.

He said that out of 3 million tonnes exportable rice 1 million tonnes Basmati and 2 million tonnes IRRI and earn foreign exchange of $1 billion and from basmati while US $0.8 billion from other rice.

Baloch said that the rice was cultivated on about 2.5 million hectares of land with production of 5.5 million tonnes.

He further said that Pakistan produces about 2.5 million tonnes of world-class famous aromatic basmati rice and due to its superior quality it fetches the highest prices in the international market. “The year 2007-08 is characterized with record high prices of rice fetched by Pak Basmati at $ 1100/tonne.”

He further said that Basmati rice is a rich source of foreign exchange earning.

About the policy issues and challenges being faced by the country, he said that increasing productivity to enhance export surplus and reduce cost of production is a challenge.

He said wide productivity gap between progressive and subsistence farmers, low plant population, unprecedented increase in DAP prices, imbalanced use of fertilizers, transfer of technology to all farmers, insect and pest attack problem, poor harvesting , threshing and processing, boosting rice export, compliance of SPS measures and malpractices in trade are the policy issues being faced by the country. app

Daily Times - Leading News Resource of Pakistan

 

[Neo]

US, World Bank and IMF assure full support to Pakistan​

* Development partners informed agriculture and manufacturing will be basis for growth​

ISLAMABAD: Pakistan’s three key development partners — the United States, World Bank and the International Monetary Fund (IMF) — assured the new government of their full support in its efforts to meet economic challenges.

They also expressed the hope that the new democratic government would be capable, with the donor community’s help and support, to meet economic challenges for the welfare of the people of Pakistan.

A senior official at the Ministry of Finance, after returning from a visit to Washington, told Daily Times that this was an excellent opportunity for the Finance minister to meet the heads of the World Bank and IMF and inform them of the priorities of the new democratic government.

Basis: They were informed that agriculture and manufacturing would be the basis for economic growth in the new government, as this pattern would enable the country to achieve sustainable economic growth with job creation. The services sector would get due attention so it could contribute substantially to the Gross Domestic Product (GDP), the official added.

In the current fiscal year, GDP growth is projected to be around 6 percent and corrective measures must be taken to consolidate the economy to face current and future economic imbalances, he said.

According to the official, the donors were informed that external shocks, such as rising oil prices, high commodity prices and economic mismanagement in the last 13 months of the previous government, were the main causes of Pakistan’s current economic imbalance. This greatly added to the burden on the newly elected government, the official added.

It was informed that the previous government, due to political expediency, did not pass on rising oil prices and power generation costs, due to which a huge backlog had piled up on the national exchequer. It would be unfair to pass on the full impact of the increased oil prices immediately, and this task would be met through gradual measures in the months to come, he added.

The official said that the new government would take decisions in the best interest of the masses, keeping in view their needs and demands. Continuity of policies would be ensured to reduce poverty and supplement growth requirements, he added.

The meeting with the US State Department was fruitful, as the economic team got full support from US authorities for implementation of its ambitious development agenda. The assurance was that US authorities would help the new democratic government in many sectors, the official added.

The delegation also informed the US business community, during a meeting, that a policy of de-regulation, liberalisation and privatisation would continue and a level playing field would be ensured for local, as well as foreign, investors in Pakistan.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan committed to IPI gas pipeline project, US told​

* Minister tells Patterson govt also committed to materialising TAP gas pipeline project​

ISLAMABAD: Pakistan on Wednesday told the United States that it was committed to signing the Iran-Pakistan-India (IPI) gas pipeline deal with Iran to meet its emerging energy requirements, well-placed sources told Daily Times.

The sources said Federal Minister for Petroleum and Natural Resources Khawaja Asif informed US Ambassador Anne W Patterson, who called on him, that Pakistan and Iran were in the final stages of signing the IPI gas pipeline project deal.

When the US ambassador inquired about progress on the project, Asif told her that Pakistan and India would hold talks on the transit issue on April 25. Indian Petroleum Minister Murli Deora would represent his country at the talks, he told her.

Patterson was also told that the Indian ambassador would meet with the Pakistani petroleum minister on Thursday (today) to discuss developments on the project, the sources added.

TAP project: The US ambassador was also briefed on the current status of the Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline project. Patterson was told that Pakistan was committed to materialising the TAP project, and that the steering committee for this project would meet from April 23-24 to discuss project modalilities. She was told that Turkmenistan would present a certification of gas reserves at the meeting, so that the deal could proceed.

Asif also told the ambassador that the new government would take steps to mine Thar coal deposits for power generation, to meet the challenges of soaring international oil prices and to reduce the $12 billion oil import bill. Patterson said the US was mindful of Pakistan’s energy requirements and was keen to assist in developing the country’s energy sector. She said the US was reviving the dialogue on energy and sought Pakistan’s participation in the process.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

KESC to submit plan for improved supply​

KARACHI, April 16: The Karachi Electric Supply Company is submitting a short-term plan to the government next week for improved electricity supply during summer.

Privatisation Minister Naveed Qamar disclosed this to Dawn from Islamabad on telephone, which was confirmed by KESC chief executive Lt Gen (retd) S. M. Amjad here on Wednesday.

“We are not going to tinker with KESC privatisation transaction,” the minister replied in response to a question but revealed that the new investors had been asked in a meeting held early this month to give a short-term improvement plan in three weeks time.

“The federal water and power secretary held a meeting with us on Monday on this issue and we are preparing a plan to be given shortly,” the KESC chief executive said. He was confident that the current summer would not be as difficult as the last one.

“As against a minimum shortfall of 300 megawatt last summer, we expect a shortfall of 250MW in the current summer,” he said about the expected load management and distribution. He said the KESC was engaged in upgrading the systems with funds of Rs13 billion announced by the government before the privatisation and the investors were also putting some money in it. He disclosed that the KESC was taking up an energy conservation programme with the help of the government and the media as part of augmenting electric supply programme and cutting down on loadshedding time. He said that many relevant issues would be taken up by the board of directors in a meeting to be held late this month.

Responding to a question, the privatisation minister called Privatisation Ordinance, 2000, as a complete and comprehensive law, which does not warrant a review. “But, of course, we will improve the procedures,” he remarked to emphasise the point on making process more transparent. He said the procedure for appointment of a financial adviser of any entity would be made more transparent.

As for the controversial privatisation deals in last seven or eight years, Naveed Qamar said these would be taken up by the Public Accounts Committee of the National Assembly in the light of objections raised by the Auditor General. He announced that the privatisation board would soon be reconstituted.

Privatisation came to a virtual halt in 2008 and the only announcement came after February 18 elections and induction of the new government is about the invitation of expressions of interest to divest 93.88 per cent of shares of the SME Bank.

KESC to submit plan for improved supply -DAWN - Business; April 17, 2008

 

[Neo]

Record $602 million remittances received in March ​

KARACHI (April 17 2008): The country received a record $602.21 million from overseas Pakistanis during March 2008, against $520.24 million during the same month of last year, depicting a rise of $81.97 million, or 15.76 percent. The previous highest amount remitted in a single month by Pakistani workers was $580.24 million in October 2007.

The inflow of remittances into Pakistan from almost all countries of the world rose last month as compared to March 2007. According to break-up, remittances from the USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $151.95 million, $120.11 million, $111.74 million, $85.44 million, $41.98 million and $15.01 million, respectively, as compared to the corresponding receipts from the respective countries during March 2007, ie $142.72 million, $92.69 million, $82.29 million, $70.43 million, $37.75 million and $12.88 million respectively.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during March 2008 amounted to $75.84 million as compared to $81.13 million during March 2007.

Remittances sent home by overseas Pakistanis continued to show rising trend as $4,728.37 million has been received in nine months (July 2007-March 2008) of the current fiscal year, showing an increase of $791.60 million, or 20.11 percent, over the same period of the last fiscal year.

The amount of $4,728.37 million includes $2.15 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). The monthly average of remittances for the period July-March, 2007-08 comes out to $525.37 million as compared to $437.42 million during the same corresponding period of the last fiscal year, registering an increase of 20.11 percent.

The inflow of remittances in the July-March 2007-08 period from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1,312.34 million, $881.95 million, $793.62 million, $704.27 million, $334.85 million and $131.13 million, respectively as compared to $1,034.69 million, $733.48 million, $595.98 million, $538.29 million, $319.25 million and $110.38 million, respectively in the July-March, 2006-07 period.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first nine months of the current fiscal year amounted to $568.06 million as against $602.80 million in the same period last year.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Hurdles in way of economic growth will be removed: Prime Minister ​

LAHORE (April 17 2008): Prime Minister Syed Yusuf Raza Gilani has said that Pakistan as a free market economy possesses enormous potential for investment, and called upon the business community of the member countries of South Asian Association for Regional Co-operation (Saarc) to benefit from Pakistan's liberalised investment and trade policies.

The Prime Minister said the government machinery would serve as a facilitator rather than a "regulator" and that all unnecessary barriers in way of economic growth would be removed. It would not only help strengthen bilateral relations, but would also contribute positively towards the regional development of Saarc, he added He was addressing a seminar on "Economic freedom - a stimulator in achieving business excellence in South Asia", organised by Saarc Chamber of Commerce and Industry (SCCI), in collaboration with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), supported by Friedrich Naumani Stiftung (FNS) held here on Wednesday.

Referring to the achievements of the organisation, Gilani said optimistically they might have achieved much, but certainly there was a potential to achieve much more. He urged the member nations to transform Saarc into a free-trade area in the form of Safta, it was time to seize the moment to overcome challenges. "To overcome challenges, let us move from debate and deliberations to concrete actions," he added.

Stating that being committed to the Saarc process it was their collective responsibility to demonstrate the courage, commitment and foresight to transform South Asia into a progressive, peaceful and prosperous region. "Achieving this sincere and earnest desire shall require a paradigm shift of our thinking and our attitude as a whole," he added.

The Prime Minister said Saarc had entered third decade of its establishment. "Our progress remains short of our aspirations. South Asia is yet to forge the quality and intensity of regional co-operation, which could match with the revolutionary transformation brought about in the lives of people of many other regions of the world."

He said intra-regional trade of only six percent did not reflect the potential available in the region. "Business community of Saarc will surely play its due role to tap the existing and indicative potential as all the Saarc member states are committed to achieving the goals perceived under the Safta," he added.

The Prime Minster said they were hopeful that the trade liberalisation programme, to be concluded by 2016, would provide a level playing field to all member states.

"It is heartening to know that trade in services has recently been included in Safta negotiations. This would further widen the sphere of commercial activities in the region," he added. Gilani hoped that the free-trade agreement (FTA) would usher in a new phase towards achieving the ultimate goal of a South Asian Economic Union and accelerate the pace of growth and regional integration.

Referring to the policy of his government, the Prime Minister said that they had embarked upon a liberalised economic policy. "This would not only help expansion of economy, but would also promote economic freedom in the country," he said.

Gilani further said that Pakistan, as a free market economy, possessed enormous potential for investment, called upon the business community of Saarc member states to benefit from their liberalised investment and trade policies. He said that it would not only help strengthen bilateral relations, but would also contribute positively towards the regional development of Saarc.

Referring to the manifesto of his government, the Prime Minister said it ensure the socio-economic freedom of the society. "We realise that due to the prejudiced policies of the past regimes in the region, economic freedom has been one of the neglected areas of our agenda. Our party is a fervent supporter of economic freedom.

"It perceives economic freedom as an instrument of economic well being of the country. Economic freedom ensures rule of law, promotes democracy, secures basic human rights and confers rights of doing business," he added.

The Prime Minister, referring to the role of private sector, said it played a leading role in the economic development of the country. "Our government considers the private sector as an engine of growth," he added. Besides the Saarc President, Saarc from Sri Lanka, Bangladesh, seven-member delegation from India President FPCCI Tanvir Ahmad Shaikh, Vice President and executive committee members of SCCI were present in the moot.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan grappling with rising import bill, food shortage ​

KARACHI (April 17 2008): After five years of solid growth, Pakistan's economy is facing an import payment crisis and an acute food shortage to feed its ballooning population of 170 million. Finance Minister Ishaq Dar, last week revised the country's expected growth rate to 6 percent from 6.5 percent.

Pakistan has witnessed phenomenal annual growth rate of around 8 percent since 2002, thanks in part to billions of dollars in US aid to fight extremism after 9/11. According to local reports, Pakistan has received close to 11 billion dollars of such aid since 9/11.

"The new government needs to clear the mess by the military government. It is no doubt a daunting task which may have social and political implications for the new setup," Hari Ram Lohano, a senior economist at the country's premier think tank - Social Policy and Development Centre - told Deutsche Presse-Agentur.

Pakistan's new democratic government has promised to end food shortages and work to eradicate poverty.

Commerce Minister Khaqan Abbasi said this week Pakistan would face at least a 16-billion-dollar deficit in fiscal year 2007-08, which will end on June 30. Meanwhile, former finance minister Salman Shah painted a gloomier picture, telling the media Pakistan would face a trade deficit of 18-19 billion dollars in 2008-09.

Given the country's fragile foreign exchange reserves of around 14 billion dollars, this places Pakistan's balance of payment task to a crisis level amid rising international oil and agricultural commodities prices and an acute wheat shortage across the country. Wheat is Pakistan's staple food.

"The government has to design innovative policies to fight with this twin devil (balance of payments and food shortages) and protect consumers at the same time," says Lohano.

Lohano said the government must adopt stringent disciplinary policies in terms of its current account deficit, which mainly involves debt servicing, oil imports and the defence budget. The country has over 40 billion dollars in external debt and over one-third of its imports consist of crude and refined oil products According to sources in the Ministry of Finance, the country's total oil import bill will be about 11-12 billion dollars as the fiscal year ends on June 30.

The oil import bill rose by a phenomenal 30 percent to 6.338 billion dollars in the July-February period of the current fiscal year from 4.741 billion dollars over the corresponding period last year, according to the figures complied by Federal Bureau of Statistics.

A hefty spike in global oil prices, which topped 114 dollars per barrel on Tuesday's international trading, is the chief reason for this increase. Dar on April 9 at a press conference announced an emergency programme to pull Pakistan out of crisis and mobilise 2.5 billion dollars from various sources to plug in current account deficit. This may also include 500 million dollars in support already announced by China recently.

On top of the balance of payments problem, an almost 40 percent increase in international wheat prices had led Pakistan's bulk wheat to be smuggled to Afghanistan and India. The illegal trade has created massive shortages in the domestic market and near-riot situations in many cities, especially in NWFP, which is also undergoing a civil war between militants and the government, and central Punjab.

Paramilitary forces have been deployed to oversee wheat and flour distribution, as the World Bank has expressed concern about Pakistan's agriculture shortages in its spring report released this week.

The World Bank cited "insecurity and past floods" for food shortages in Pakistan, putting the country among the 36 countries, which require urgent international aid to avoid any further flare-ups. The government recently increased wheat support price to encourage private flourmills to supply flour in the local markets instead of smuggling the staple food across the border. However, long queues outside the utility stores and other shops tell a different story.

"It will take time till the situation improves or gives us any direction to predict," says Ansar Javed, former president of Pakistan Flour Mills Association.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan and China agree on cooperation in various sectors ​

ISLAMABAD (April 17 2008): China has agreed to give Pakistan its full support for development in the sectors of energy, minerals and mining, extending co-operation in monetary sector and co-ordination in communication and transportation.

At the conclusion of the visit of China by President Pervez Musharraf, a joint communiqué has been released from Beijing and Islamabad, according to which both countries have agreed on further strengthening the strategic co-operation in defence and signed ten memorandums of reconciliation, private TV channel reported.

The officials of the Pakistan ministry of water and electricity and Chinese ministry of water resources signed the agreements. Pakistan's ministry of science and technology and China's Academy of Engineering also signed a memorandum. Besides, Pakistan's ministry of sports and China's General Administration of Sports and the finance ministries of both countries, the Capital Development Authority of Islamabad and the Consortium of China Architecture Design and Research Group signed the memorandums.

This has been said in the joint communiqué that China and Pakistan have agreed on getting maximum benefits from the agreement on free trade. China lauded the efforts of Pakistan for maintaining its sovereignty, independence and regional integrity and elimination of terrorism, promotion of peace, solidarity and security.

Both countries have agreed to achieve the trade target of 15 billion dollars at their earliest. Pakistan reiterated its complete support to one China policy and Taiwan's inclusion in China. Chinese president Hu Jintao accepted the invitation from President Musharraf to visit Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Services trade deficit up by 40.35 percent till February ​

ISLAMABAD (April 17 2008): Pakistan's trade deficit in the services sector surged by $4.223 billion during eight months of the current fiscal year showing 40.35 percent increase over last year's $3.009 billion. According to the figures released by Federal Bureau of Statistics (FBS), exports were $2.213 billion during July-February against $6.347 billion imports, depicting $4.223 billion deficit.

This shows that Pakistan's imports in services increased significantly compared to exports during, going up from $5.547 billion to $6.347 billion, while exports declined from $2.538 billion to $2.213 billion for the same period.

Further analysis of the data showed that exports picked up during February over the last month by 127 percent, going up from $223.886 million in January to $508.951 million in February. The imports also declined by 14.65 per cent from $894.771 million in January to $765.480 million in February. Total imports in February were of $765.480 million against exports of $508.951 million, showing a deficit of $256.529 million.

The data for the period under review showed an increase of 99.65 percent in exports in February 2008 over the same period last year, going up from $254.919 million in February 2007 to $508.951 million in February 2008. A surge of 20.93 percent was recorded in imports during the same period, up from $632.973 million to $765.480 million which helped in reducing balance of trade by 32.14 per cent. According to analysts, the negative growth in exports of services was owing to many reasons, including political instability.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Sick industrial units to be revived: minister ​

PESHAWAR (April 17 2008): The NWFP Senior Minister for Finance Rahimdad Khan said Wednesday that special measures were being taken by the government to promote technical education in the country as the skilled labour on working abroad would not only boost the economy of the country but also earn their livelihood in an honourable manner.

Talking to a 30-members delegation of Pakistan Peoples Labour Bureau NWFP that called on him under the leadership of its provincial President Tilla Muhammad at Civil Secretariat Peshawar, he said that PPP had always given respect to the labour community and the provincial government would ensure strict implementation of the labour laws to end exploitation of the labourers as well as safeguard their rights.

He said, "we have been elevated to power by the poor masses; therefore, we would leave no stone unturned in addressing their problems and would make judicious use of the available resources to uplift their life standard as per their expectations".

Steps for the revival of sick industrial units and production of cheaper electricity in the province, he said, were also being taken to provide employment opportunities to the locals and thus curtail the growing problem of unemployment.

The Senior Minister said that present government after coming into power had lifted ban on the students' unions and was striving for the promotion of real democracy, establishment of free judiciary and free media in the country so that every person in the society including labourers could get their due right and lead a respectable life.

The 100-days programme announced by the Prime Minister Yousaf Raza Gilani to bail the country out of the present challenges, he said, would be implemented in the Frontier Province too by the provincial government in the interest of the local people.

Rahimdad Khan exhorted upon the labour community to shun grouping and work shoulder to shoulder with the government to put country on the track for speedy progress and prosperity.

He also assured that the problems facing the labourers would be resolved by taking them up with the quarters concerned at the earliest. Earlier, 'Fateha' was offered for the slain PPP leader and former Prime Minister Benazir Bhutto Shaheed and others. Members of the delegation thanked the Senior Minister for giving patient hearing to them and taking keen interest in the redressal of their problems.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Turkmen minister to discuss gas pipeline with Pakistan ​

ASHKABAD (April 17 2008): Turkmenistan's Industry Minister Baimyrat Khodjmukhammedov will travel to Pakistan at the end of this month to discuss plans to build a gas pipeline linking the two countries via Afghanistan, state press agency TDH reported on Wednesday.

Turkmen President Gurbanguly Berdimuhamedov in July 2007 said during a visit by his Pakistani counterpart that he was prepared to study proposals for a gas pipeline with capacity of 30 billion cubic metres per year.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'Construction of dams must to overcome food and power crises' ​

PESHAWAR (April 17 2008): The central leader of Tehreek-e-Istiqlal, Rehmat Khan Wardag, while expressing great concern over the electricity and wheat crises in the country, on Wednesday said that construction of five big dams, including Kala Bagh, would not only resolve these problems but would also put the country back on the track to development.

He expressed these views while talking to a delegation of office-bearers and workers of the Tehreek here. He said that power crisis has been created due to non-construction of new dams, and added that prolonged suspension of power has crippled daily life activities and industries that has badly affected the economy and increased unemployment.

Rahmat said that any further delay in the construction of the dams would deepen the food crisis in the country. President Pervez Musharraf has fulfilled his promise of holding free and fair elections and transfer of power to the elected representatives, he said, adding that the political parties should work for promotion of national reconciliation.

He said that political parties should work for resolution of the problems faced by common people instead of playing the politics of vested interests.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

NWFP to install solar wood seasoning plants ​

PESHAWAR (April 17 2008): The NWFP Minister for Environment and Forest, Wajid Ali Khan has said that the provincial government will install solar wood seasoning plants at two major timber markets of the Forest Development Corporation (FDC). The plants to be installed at Chakdara (Swat) and Goharabad (Havelian) would enhance the wood quality that would produce durable furniture.

The minister said this in a briefing of the FDC in Peshawar on Wednesday where the Secretary Environment, Hussain Zada Khan, Managing Director FDC, Dr Iqbal Sial, General Manager Finance, General Manager Operations and other concerned officials were present.

He directed the FDC authorities to design a comprehensive plan for enhancing forest-covered area to 25 percent as per international standard. He also ordered launching of infrastructure and other similar projects for the development of forest covered areas so as to improve people's living standard in these areas.

Khan further asked the FDC to launch a mega project for increasing forest-covered area in Swat valley that could conserve natural resources of the area and make the environment pollution free as well. He said that his government would evolve an effective strategy for giving maximum benefit to forest owners and forest connectionist in order to save forest from further destruction.

The MD, FDC informed the minister that the organisation earned Rs 766 million profit since its establishment. Out of this amount he said, 35 percent had been spent on raising nurseries and afforestation schemes, constructed more than 1000KM roads and 26 bridges in forest covered areas as part of its development schemes. He also said that the FDC had granted financial assistance of Rs 290 millions to the NWFP for making the environment pollution free.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Continued from here:

http://www.defence.pk/forums/econom...stan-economy-daily-update-822.html#post151562