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‘Aviation industry should focus on revenue management’

ISLAMABAD: Better revenue management is the only solution to the ills of aviation. This was stated by Shahid Khaqan Abbasi, Federal Minister for commerce while addressing a seminar on the aviation industry in Pakistan. The federal minister said that we should focus on better management because the competitors in the industry are highly skilled. The minister said Asia pacific region has a lot of potential in aviation. The future of aviation is bright in the region.

The seminar was titled “Opportunities, challenges and future of Aviation industry, A Pakistan Perspective” and organised by Revenue And Management Solution (RAMS).

RAMS is a global provider of training and automation solution in the airline industry. The company primary focus is pricing and revenue management solution for airlines (passenger and cargo), skill development and management skills. Santos Miguel, Director International Sales Boeing corporation USA, gave a detailed presentation on commercial aviation in Pakistan.

He termed the Asia pacific as the future hub for aviation in future. The principal, civil Aviation institute, Mujahid Khan enlightened the participants on the role of Civil Aviation Authority (CAA) in Pakistan. The role of CAA is facilitation and controlling aviation and preparing plans for efficient aviation in the country.

Daily Times - Leading News Resource of Pakistan
 
Six rivers lose 1.88 MAF annually: Irrigation water in Punjab, NWFP

RAWALPINDI, April 18: At a time when the country’s agricultural production is being hampered by less availability of irrigation water, six rivers in the Barani areas of the Punjab and NWFP are losing 1.88 million acre feet (MAF) of water on annual basis, an official study says.

Merely, 0.22 MAF is currently being tapped across a total basin area of 22,307 square kilometres, comprising the rivers of Soan, Haro, Reshi, Bunha, Kahan and Kanshi, according to statistics compiled by the Asian Development Bank (ADB).

However, the ADB has agreed to finance a community water storage and irrigated agriculture project, which has been proposed by the governments of Punjab and NWFP, to contribute to sustained long-term social and economic development and reduced drought vulnerability in Punjab’s Potohar region and barani areas of NWFP.

The total cost of the project is estimated at $103.36 million. ADB’s share in total project cost would amount to 72.6 per cent, while the government and beneficiary shares would amount to 25.3 per cent and 2.1 per cent, respectively.

With a vast untapped potential both provincial governments are pursuing small dam development with Public Sector Development Programme (PSDP) financing.

However, while a commitment to small dam development at the level of the government is there, the programmes do not extend beyond securing funds from the PSDP and construction of dams, the ADB noted.

Though the absence of a productive section of the population that has sought its main source of livelihood off-farm due to the arid conditions of barani, agriculture has played a big role in holding back the anticipated benefits in agriculture from investment in the sub-sector, unarticulated policy, institutional dynamics and capacity compound to keep the potential of these small dams dormant, the study pointed out.

Devoid of participatory planning, involvement and inclusion of other stakeholders and direct beneficiaries, and in the absence of a dedicated irrigated agriculture advisory and support services with a well-thought out strategy to work as an initial catalyst, water remains unutilised for remunerative agriculture once the dam is built.

From a sample of 28 dams, 60 per cent of the dams were able to develop only 20 per cent to 40 per cent of their command area. On the rest of the dams, on an average, 87 per cent of the planned area could be developed.

Since 1961, a total of 41 small dams have been constructed in the rain-fed areas of the Potohar Plateau in the Punjab Province, 12 of which were financed through the ADB under the Small Dams Project during 1986 to 1993.

Nine dams are currently under different stages of construction. Out of the dams under construction, four are in Chakwal, three in Jhelum and one each in Rawalpindi and Attock.

Similarly, since 1962, 15 small dams have been built and are operational in the NWFP, five of them under ADB funding of the Drought Emergency Relief Assistance programme, and one exclusively for municipal water supplies in Karak.

In both provinces there is a marked contrast between the irrigated and non-irrigated/barani areas.

In Punjab, these barani areas mainly lie in the Potohar Plateau between the Indus and Jhelum rivers that covers an area of 2.2 million hectares of which one million hectares are under rain-fed agriculture.

There are around 2,600 villages having population of 4.2 million, and these people generally have far more limited opportunities for productive agriculture and the livelihoods it supports than the farmers in the irrigated areas.

In NWFP 800,000 hectares of cultivable land is not irrigated. Barani agriculture in the Punjab represents about 20 per cent of the cultivated area, whereas in NWFP this is about 59 per cent. Rains are very erratic and a major portion is received during the monsoon months in July-August.

Characteristics related to barani farming system are low cropping intensities and lower yields compared to irrigated agriculture due to mainly poor soil and water management, lack of access to services, modern inputs and production technologies, and a large number of unviable and below subsistence land holding sizes, the study said.

Both NWFP and the Punjab are pursuing a small dam development programme to harvest waters from river basins in their respective rain-fed areas. Similar to the Indus Basin canal systems, the small dams are mainly conceived to supply water to agriculture.

However, unlike the Indus Basin canal system where the water mostly originates in neighbouring countries or comes from snow melt in the Himalayas, water for the small dams in barani areas is harvested from relatively close proximity.

Through small dam projects the provinces ensure that runoff generated within catchments that lie in their territorial jurisdictions is not lost and is stored.

While a rationale for water resource development to meet the needs of a growing population and to support a growing economy clearly exists for barani areas, utilisation of small dams constructed in the past 40 years to add value to agriculture has not been adequate.

Assumptions about transfer to remunerative irrigated agriculture, with hitherto unavailable water provided through small dams, have not proven correct.

By and large farmers continue to practice rain-fed agriculture with conjunctive use of reservoir irrigation water rather than growing crops under an irrigation regime and commensurate cultural practices.

Barani farmers in both NWFP and Potohar generally produce subsistence crops (wheat), along with some cash crops and fodder.

A large proportion of their household income comes from off- farm sources.

In on-farm activities their primary concern is livestock which is mainly tended by women who do not migrate with the men for work and stay at home.

Six rivers lose 1.88 MAF annually: Irrigation water in Punjab, NWFP -DAWN - Top Stories; April 19, 2008
 
$956 million US funds for infrastructure likely

WASHINGTON, April 18: The United States intends to provide $956 million to Pakistan between 2008 and 2011 as part of a comprehensive plan to expand its engagement with the country from military to civilian sectors.

In its latest report, the US Government Accountability Office noted that if approved, this fund will be used for development, security, capacity building and infrastructure.

The need to enhance US engagement in Pakistan followed a realisation in Washington that the military alone cannot rid the country of terrorism.

The GAO noted that terrorism had spread beyond the tribal areas and was now threatening the entire country. “The terrorist assassination of former prime minister Benazir Bhutto could encourage terrorists to strike the Pakistani establishment anywhere in the country … radical elements now have the potential to undermine Pakistan itself,” the report warned.

The GAO assessment of terrorism threats in Pakistan covers the period from July 2007 through April 2008 and strongly backs the US Embassy’s recommendation that Washington needs to develop a multifaceted approach to deal with terrorism in Pakistan.

The new approach, if approved by the administration and key US government agencies, would constitute the US government’s first attempt to focus more attention on key elements other than military ones to address US counterterrorism goals in Pakistan. These elements include development assistance and public diplomacy, as well as counterinsurgency training, which have not been part of the previous military approach.

The new strategy also calls for greater levels of direct US planning, implementation, coordination and oversight.

But the report noted that “this new approach does not yet constitute a comprehensive plan, and all of the agencies’ individual efforts have not been fully approved in Washington.”

The report also pointed out that such efforts suffer from funding shortfalls, and support by the recently elected government of Pakistan is also uncertain.

The GAO reported that the United State is also supporting Pakistan’s Sustainable Development Plan for the Fata. Pakistan’s plan is a nine-year, $2 billion effort to provide economic development, extend the influence of the Pakistani government and establish security in the Fata.

To assist this effort, the Pentagon undertook a counterinsurgency assessment in the Fata and began developing its Security Development Plan. At the same time, USAID provided technical assistance to the Pakistani government to help formalise its Sustainable Development Plan, as well as to plan USAID-development activities in the Fata.

All development efforts in the Fata will be directly planned, implemented, coordinated and monitored by the US Embassy in Pakistan. As of September 2007, the embassy planned to spend $187.6 million on this initial effort using fiscal year 2007 funds.

Since 2002, the United States relied principally on the military to address US national security goals in Pakistan.

Of the over $10.5 billion that the United States has provided to Pakistan from 2002 through 2007, the GAO identified about $5.8 billion specifically for the Fata and border regions; about 96 per cent of this funding reimbursed Pakistan for military operations in the Fata and the border region.

“There have been limited efforts, however, to address other underlying causes of terrorism in the Fata by providing development assistance or by addressing the Fata’s political needs,” the GAO noted.

$956 million US funds for infrastructure likely -DAWN - Top Stories; April 19, 2008
 
ADB willing to finance four-nation gas project

ISLAMABAD, April 18: The Asian Development Bank (ADB) is willing to invest $5 billion in the Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline and wants to support energy sector projects in Pakistan.

Talking to reporters at the end of his two-day visit on Friday, ADB’s Director-General for Central and West Asia Department Jaun M. Miranda said that although the bank was willing to finance the Tapi project, it would not finance the $7 billion Iran-Pakistan-India gas pipeline project on which the United States had reservations.

The Tapi project is expected to transport 100 million standard cubic metres per day (mscmd) of gas, of which India’s share is likely to be 60 mscmd. The 1,680-km pipeline will run from the Dauletabad gas field in Turkmenistan to Afghanistan.

Mr Miranda said the ADB would not reduce its annual financing to Pakistan, currently ranging between $1.5 billion and 2 billion. However, the bank would try to focus on priority areas. The ADB is at present funding 60 projects in Pakistan.

He said the bank was also willing to invest in dams and projects to reduce electricity transmission losses and improve private sector’s power production capacity.

Energy topped ADB’s priorities which included infrastructure, irrigation, urban services and reforms for the decentralisation process. He said the bank would restructure all slow-paced projects to accelerate their progress.

Next week, he said, the bank would release another $200 million for reconstruction activities in earthquake-hit areas.

ADB willing to finance four-nation gas project -DAWN - Top Stories; April 19, 2008
 
Local wedding industry is worth Rs900bn: research

Sunday, April 20, 2008

KARACHI: Project Director at Creative Circle Pvt Ltd, Imran M Sheikh has informed that Pakistan’s wedding industry is worth Rs900 billion per annum, of which Karachi alone contributes Rs168 billion and yet the industry’s optimum potential has not been utilised.

Presenting a research conducted by his organisation over a six-month period, during a seminar ‘Wedding industry, its growth, potential and recognition’ at the Karachi Chamber of Commerce and Industry (KCCI), he said that of these figures, Rs14 billion is put into the economy and that the average wedding expenditure for a family comes around Rs1.3million.

He said that as the per capita income of an individual has increased by 13 per cent per annum, people are more willing to spend on luxurious weddings. He further stated that an estimated 125,000 wedding ceremonies take place in Karachi alone, of which on an average the overall wedding expenditure on the bride’s side is estimated to be Rs832,500 while the groom spends about Rs513,500.

Breaking down the revenue enjoyed by various stakeholders in the wedding sector, Sheikh stated that beauty parlours get 2 per cent of the total expenditure, decorators get 4 per cent, while caterers get 16 per cent.

He continued to say that the venue costs 6 per cent of the total expenditures to the bride and groom while furniture, boutique and jewelers take 7 per cent, 13 per cent and 17 per cent respectively whereas, other small expenditures mount to 35 per cent of the total expenses.

Sheikh further informed that his company, Creative Circle Pvt Ltd had come out with the second edition of Real Estate Agents Directory (READ) which would now be followed with a directory dedicated to the wedding industry.

He said, “India’s wedding industry is worth Rs119 billion and look where they have reached while we still remain unrecognised despite having a much larger industry.

This is because of the lack of awareness, which this directory would help to promote.”

“Many people said that they had faced various challenges when planning their weddings and could not find venues, caterers etc. This directory would include one to all from food to beauty to wedding planners” he stated.

Local wedding industry is worth Rs900bn: research
 
Govt to review ports and shipping policy

Sunday, April 20, 2008

KARACHI: Syed Naveed Qamar, Minister for Ports and shipping, Industries, Production and Privatisation, stated that the previous ports and shipping policy will be reviewed and necessary changes would be made in order to update the sector up to international standards. He said this while briefing the media at Port Qasim Authority.

He added that there are various flaws in the port policy, which needs critical assessment and requires changes to improve the standard of the ports.

He said that though Port Qasim’s performance has been satisfactory, there is a lot of room for improvements in it. The government would focus on that and further improve the performance of the port. He added that in the future policy, more terminals and berths would be added in Port Qasim as there is a lot of capacity.

He said that KPT and Port Qasim are the gateway of the economy, as they are based in the commercial capital of the country. Gawadar Port still lacks communication links.

He noted that there are various things to be examined in the sector concerning allotment of land and employment.

On a question regarding major corruption in the sector, he said that all corruption charges will be examined and will be dealt accordingly.

About the Bundel and Bunndu Island, he stated that the issue is still prevailing and has not yet been settled, however, it will also be resolved. There are various aspects of the island which have to be considered and it still needs to be decided whether the land belongs to the federal government or the provincial government.

He added that there are several issues which need to be resolved, but it will all take some time as the government has only taken charge a few days back.

Chairman PQA Rear Admiral (Retd) Syed Afzal, briefed the minister about the progress of the Port Qasim Authority.

Govt to review ports and shipping policy
 
Cement exporters eye $400 million mark

* Cement exports remained $190 million in 2006-07, while production increased by 32%​

LAHORE: Pakistani cement exports have witnessed huge jump in the recent months and the manufacturers are eyeing $400 million mark. The cement production has also witnessed around 32 percent increase this year, the sources in industry told Daily Times on Saturday.

They said that the Indian government has banned its cement exports and ultimately it would benefit Pakistan, as the construction boom is taking place in Gulf countries. India exported around 0.55 million tonnes of cement to UAE while Pakistan exports remained 0.25 million tonnes. In such situation, the local manufacturers are set to capture the Middle Eastern market. The cement export in 2006-07 remained 2.79 million tonnes and Pakistani manufacturers got orders between $65 to $70 per tonne. Resolutely, the industry fetched around $190 million. However, this year the price is roaming at $70 to $75 per tonnes. So far, the exports in recent nine months are at 4.45 million tonnes and the manufacturers are expecting to export 5.5 million tonnes of cement by July, getting around $400 million.

Currently, Pakistan is producing 28 million tonnes of cement annually and the capacity with addition of new projects would be enhanced to 37 million tonnes, the sources said adding that a number of plants including Lucky, Bestway, Kohat and Gharibwal would start production and it would enhance the cement production in the country.

Pakistan in nine months (July 2007 to March 2008) produced 21.88 million tonnes of cement and exported around 4.45 million tonnes to different countries like India, Afghanistan, Middle East and some of African countries.

Pakistan exported 2.06 million tonnes of cement to Afghanistan and only 0.45 million tonnes of cement to India. Around 1.92 million tonnes of cement was exported through sea to other countries like UAE, South Africa, Sril Lanka and Djibouti.

In 2008, the cement exports have witnessed a huge increment, as in 2007 Pakistan exported around 2.79 million tonnes of cement including 1.72 million tonnes to Afghanistan and 1.07 million tonnes to other countries. This year, the Indian government allowed cement import and it remained attractive market for the Pakistani producers.

So far, the industry has witnessed around 50 percent enhancement in cement exports while clinker exports have also seen huge improvement. In 2007, clinker exports stood at 0.39 million tonnes while in the previous nine months, they remained 0.7 million tonnes.

Maple Leaf Chief Operating Officer, SM Imran , while talking to Daily Times said, “India is facing huge shortage of cement and it is the reason it has banned cement exports.” India is currently facing a shortfall of at least five million tonnes of cement. He said that Indian ban would have a less impact on the Pakistani exports to India; however, he said Pakistani manufacturers are getting constant inquiries from other countries. “We have received inquiries from Russia, where construction boom may take place in near future,” he said. Cement exports to India faced a number of problems in the recent months, as India instead of following European standard or American Standard for Testing Materials standards has maintained its own Board of Indian Standards. The Pakistani cement exporters are bound to send product in Hindi written scripts bag, said Imran adding that, “in EN standard, the cement grade can be 42.5 while in India it should be 43”. All Pakistan Cement Manufacturers Association (APCMA) Chairman, Aizaz Khan, said that if the government give the industry incentives then the exports could be raised more than expectations. “The cement industry has a lot of potential and if given proper opportunities then it could fetch maximum foreign exchange for the country,” Khan said.

Daily Times - Leading News Resource of Pakistan
 
Qatar to invest $5bn, Jordan to sign FTA

ISLAMABAD: Qatar will invest $5 billion in Pakistan to tap Pakistan’s investment potential in different sectors, and Free Trade Agreement (FTA) between Pakistan and Jordan is expected to be signed in August this year, Ambassadors of Qatar and Jordan informed the Federal Minister for Finance, Revenue, Economic Affairs and Statistics Senator Ishaq Dar on Saturday.

They also reassured him of their country’s support for the democratic government. Minister said that Pakistan would like to work in unison with our brotherly Islamic countries with view to increasing economic cooperation in trade and investment. Ambassador of Qatar, Hamad Ali Al-Hanzab, said Qatar would be investing $5 billion in Pakistan.

He said that Qatar has launched Islamic Takaful Insurance Company in Pakistan, and hoped that more investment would be made in the financial sector for the mutual benefit of two countries. The two sides also agreed to convene the meeting of Joint Ministerial Commission at the mutually convenient dates.

Dr Saleh Ahmed Aljawarneh, Ambassador of Jordan, proposed convening of the meeting of the Joint Economic Ministerial commission and the meeting of Joint Business Council to increase economic cooperation between two countries. He informed the Finance Minister that Free Trade Agreement (FTA) was expected to be signed in August between two countries to increase the volume of bilateral trade. The two sides also reviewed the cooperation in the field of agriculture and railways. A possibility of joint venture in manufacturing of phosphate fertilizer was also discussed.

The Ambassador of Muscat Mohamed Said Mohamed Al-Lawti discussed the role of Pak-Oman Investment Company in promotion of economic cooperation between the two countries. He said Muscat has been instrumental in accelerating development in Balochistan.

The two sides agreed to accelerate implementation of various projects in Balochistan costing around $27.5 million being financed through grant from Muscat. The two sides also noted positive development of purchase of 65 percent shares by Pak-Oman Joint Investment Company of World Call Shares, its interest in telecommunication and power sector. The Ambassador also expressed the interest to develop tourism in Balochistan.

Daily Times - Leading News Resource of Pakistan
 
PC to initiate construction of two dams in Balochistan

* CDWP likely to recommend 39 projects worth Rs 133.395bn​

ISLAMABAD: The Planning Commission is to initiate the construction of two small dams in Balochistan, worth Rs 4.791 billion, in line with the agenda of the policy speech of Prime Minister Syed Yousaf Raza Gillani.

The construction of these two dams is presented in the agenda of Central Development Working Party (CDWP) that is to be held on 26th of this month. The two projects are; ‘Construction of Shadi Kaur storage dam, Pasni Gwadar worth Rs 2.637 billion’ and ‘Construction of 100 Delay Action Dams in Balochistan worth Rs 2.154 billion’.

After taking the vote of confidence in the national assembly, the PM announced that more power generation projects would be initiated on priority basis so as to over come the power deficiency in the country.

Apart from these two projects in Balochistan, official in the Planning Commission told Daily Times here on Saturday that construction of 2 to 3 small dams in Punjab, NWFP and Sindh are in pipeline and expected to present these projects in next CDWP meeting. The official said, “purpose of these small dams to meet power shortfall about 3,000MW at present and also to ensure smooth supply of power to industrial units.”

The CWDP is likely to recommend and take up 39 developmental projects worth Rs 133.395 billions including with foreign exchange component (FEC) worth Rs 64.521 billion. The projects are; agriculture and food, forestry & wildlife, water resources, energy, health, physical planning and housing (PP&H), industry and commerce, education, manpower, devolution and area development, governance, information technology and higher education commission (HEC).

The CDWP can only approve projects costing up to Rs 500 million and the projects costing above this limit must be approved by the Executive Committee of the National Economic Council (ECNEC). The CDWP agenda, obtained by Daily Times, shows that the Agriculture and Food sector consists of five projects worth Rs 2.637 billion including Rs 99.047 million as FEC. The Forestry & Wildlife has single project, namely “Mangla Watershed Management” worth Rs 319.750 million.

The agenda shows six projects for water resources sector with total cost of Rs 15.966 billion with FEC Rs 3.286 billion.

The Energy sector consists of four projects worth Rs 60.711 billion including Rs 37.368 billion as FEC.

The health sector has only one project, namely ‘Roll Back Malaria (RBM) in Pakistan’ worth Rs 664.707 million.

The physical planning and housing sector has five projects worth Rs 5.091 billion having Rs 2.829 billion as FEC. Industry and Commerce sector has three projects worth Rs 1.817 billion having Rs 555.24 million as FEC.

The education sector has just one project namely, ‘establishment of government training courses under prime minister’s special initiatives’ worth Rs 237.951 million.

Manpower sector has two projects worth Rs 579.78 million and the devolution and area development sector consists of three projects worth Rs 18.676 billion having Rs 2.933 billion as FEC.

The Governance sector consists of four projects worth Rs 6.856 billion with Rs 312.70 million as FEC.

The Information Technology sector has two projects worth Rs 19.307 billion having Rs 17.136 billion as FEC while Higher Education Commission (HEC) has two projects worth Rs 528.79 billion. ijaz kakakhel

Daily Times - Leading News Resource of Pakistan
 
‘Govt should modify, not scrap previous policies’

PESHAWAR: Former governor State Bank of Pakistan (SBP), Dr Ishrat Hussain has asked the new government to modify the policies followed by the previous administration instead of starting from scratch after scrapping the policies of its predecessors, which he said, “had been a dominant trend in the past.”

“The low growth rate throughout the 1990s was a result of such policies and it had led to disenchantment on the part of electorates,” he said while addressing a one-day policy dialogue, Reforms in Micro Financing and Growth of SMEs, jointly arranged by the Sarhad University, NWFP Ministry of Finance and SBP here on Saturday.

The number of people availing the micro finance facility has reached to around 1.5 million over the past few years while it was zero in 1999-2000, former central bank head said, urging the government to review the past work and policies and modify these for the benefit of the people.

“There is no magic wand or a quick poverty reduction strategy for Pakistan. Rather it requires hard work in a continuous manner and the success of the Grameen Bank in Bangladesh was testimony of this fact,” he said. He said that around 16 percent of population in United States also lives under the poverty line and this problem is not limited to the poor counties.

“Micro finance institutions are helpful to the poor in a sense that there is no collateral or security attached to the loan, which is a dominant feature in other kinds of financing,” he said. He said that Pakistan is the first country in the world which brought the micro finance institutions under the regulatory control of the central bank to keep away these institutions from potential scams and to protect their money.

“SBP has the target of reaching out to around 3 million people out of 40 million poor in the country,” he said. He said that microfinance institutions could not eliminate poverty but they provide a procedure for reducing it.

Daily Times - Leading News Resource of Pakistan
 
100 small dams to be built in Balochistan: CDWP meeting on April 26

ISLAMABAD (April 20 2008): The government will build 100 small dams in Balochistan as a plan of constructing first 20 dams, costing over Rs 2.15 billion in the province has been finalised by the Water and Power Ministry, sources told Business Recorder on Saturday.

This will be the first step in line with Prime Minister's announcement of constructing small dams for water conservation and power generation. Sources said that Punjab, Sindh and NWFP have also been directed to present their plan, of constructing small dams, to the Planning Commission (PC) as early as possible.

The Water and Power Ministry's plan of constructing 20 small dams in Balochistan will be taken up by the Central Development Working Party (CDWP) in its meeting to be held on April 26.

The CDWP will take up total 36 development projects, costing around Rs 43 billion. The concept clearance of three development projects worth Rs 11.7 billion would also be taken by the meeting, which will be chaired by PC Deputy Chairman Dr Akram Sheikh.

In the energy sector, total four projects, valuing Rs 8.6 billion, are on the agenda of the meeting. Two projects, namely establishment of 500 MW combined cycle power plants at Faisalabad and Dadu will cost Rs 2.85 billion and Rs 2.92 billion respectively. The other two hydro-power projects with a capacity of 16 and 14 MW will be executed by the Kashmir and Northern Areas (Kana) Division. These will be established in Gilgit at a cost of Rs 2.8 billion.

In the water resources sector, six projects, costing around Rs 16 billion, will come for consideration of the CDWP. The World Bank (WB)-assisted project of water Indus water sector capacity building costing Rs 3.28 billion, construction of Shadi Kaur storage dam, Pasni, Gwadar worth Rs 2.63 billion, Balochistan effluent disposal valuing Rs 6.53 billion, revamping of irrigation and drainage system in Sindh costing Rs 0.92 billion are some of the important projects in the sector.

The CDWP will take up two projects costing over Rs 18.8 billion in information technology sector. Suparco has demanded an amount of Rs 18.81 billion for setting up Pakistan communication satellite system.

In industries and commerce sector, three projects costing Rs 2.32 billion will also be considered by the CDWP. The important scheme in the sector has been forwarded by Pakistan Atomic Energy Commission (PAEC) that wants to conduct a new mineral survey by spending more than Rs 1.35 billion.

The CDWP will take up four projects worth Rs 6.85 billion in governance sector. The revised project of raising Balochistan constabulary costing Rs 5.95 billion is the most important scheme to be considered. In food and agriculture sector, five projects worth Rs 2.6 billion will be taken up. The most important development scheme among the projects is national pesticides monitoring system in Pakistan costing Rs 1.21 billion.

In devolution and area development, Payara Kashmir programme costing Rs 11.11 billion will be taken up by the CDWP. The Balochistan government will give concept clearance (CC) on local services delivery and governance programme costing Rs 4.8 billion to the CDWP. This project is likely to be assisted by the WB and UK's Department for International Development (DFID). The other CC on Chitral Area Support Project costing Rs 2.77 billion has been submitted by the NWFP government.

Business Recorder [Pakistan's First Financial Daily]
 
SPI up by 22.71 percent

ISLAMABAD (April 20 2008): The inflation, measured through Sensitive Price Index (SPI) surged by 22.71 percent in the week ended on April 17 over the same period of last year owing to wild increase in the prices of essential commodities.

The data released by Federal Bureau of Statistics (FBS) on Saturday showed that SPI inflation, skyrocketing since the adjustment of oil prices in March, surged to 22.71 percent on April 17 from 12.16 percent on February 28, making life harder for the low-income group.

The purchasing power of low-income group squeezed by the last increase is yet to bear the impact of first adjustment made by the new government in the wake of increasing oil prices in the international market.

The inflation is one of the major challenges for the government, along with trade, current and fiscal deficits which the Finance Minister intends to curtail by money growth. The State Bank of Pakistan (SBP), already pursuing a tight monetary policy, anticipates that inflation would persist and magnify in the months ahead.

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

Weekly data showed that dearness during the week has gone up from 21.44 percent to 25.58 percent for families bracketed in Rs 3000 group, 21.17 to 25.17 percent for Rs 3001 to Rs 5000, 20.35 to 23.47 percent for Rs 5001 to Rs 12000 and 18.20 to 20.09 percent for families with income of above Rs 12000.

The prices of 27 essential commodities increased during the week while 6 showed decline from the list of 53 items used to measure weekly inflation, based on data collected from 17 urban centres.

According to FBS, during the week under review, price of per kg rice Irri-6 increased to 34.82 from Rs 30.26, wheat flour average quality increased to Rs 21.81 from Rs 19.67, rice basmati broken per kg to Rs 42.39 from Rs 39.86, egg hen (farm) dozen to Rs 53.58 from Rs 50.52, red chillies per kg to Rs 172.55 from Rs 164.55, wheat average quality per kg to Rs 18.89 from Rs 18.08, bananas dozen to Rs 36.29 from Rs 35.02. potatoes per kg to Rs 12.59 from Rs 12.16, onions per kg to Rs 11.76 from Rs 11.46, gram pulse washed per kg to Rs 47.50 from Rs 46.37, vegetable ghee loose per kg to Rs 126.28 from Rs 123.81, mustard oil per kg to Rs 142.11 from Rs 139.66, chicken (farm) per kg to Rs 106.11 from Rs 104.87, washing soap cake to Rs 10.94 from Rs 10.82, voil printed metre to Rs 42.71 from Rs 42.28, curd per kg to Rs 37.65 from Rs 37.29, masoor pulse washed kg. to Rs 83.02 from Rs 82.31, cooked beef plate each to Rs 35.19 from Rs 34.93, moong pulse washed kg to Rs 52.71 from Rs 52.37 shirting metre to Rs 72.97 from Rs 72.53, milk fresh liter to Rs 31.95 from Rs 31.76, salt powdered kg to Rs 5.38 from Rs 5.35, lawn metre to Rs 88.59 from Rs 88.15, mutton kg to Rs 241.84 from Rs 240.67, beef kg to Rs 124.87 from Rs 124.37, bread plain mid size each to Rs 19.68 from Rs 19.62 mash pulse washed kg to Rs 72.62 from Rs 72.52. This shows no let-up for the poor who find it hard to meet both ends and also a big challenge for the new government.

Business Recorder [Pakistan's First Financial Daily]
 
Pakistan to boost trade ties with Islamic states: Dar

ISLAMABAD (April 20 2008): Finance Minister Ishaq Dar on Saturday said Pakistan would work with brotherly Islamic countries to increase economic co-operation to promote trade and investment. He said this during separate meetings with ambassadors of Qatar, Jordan, and Muscat, who called on him here to reassure their countries' support for Pakistan.

An official handout issued here said that Qatar Ambassador Hamad Ali Al-Hauzab told the minister during the meeting that Qatar would be investing $5 billion in Pakistan in next few years. He said that Qatar has launched Islamic Taqaful Insurance Company in Pakistan and it will enhance investment of his country in Pakistan mutual benefit of the two countries. The two sides also agreed to convene the meeting of joint ministerial commission (JMC) shortly.

Jordan's Ambassador Saleh Ahmed Aljawarneh proposed convening of the meeting of the Joint Economic Ministerial Commission and the meeting of Joint Business Council to increase economic co-operation between the two countries.

He informed the finance minister that free trade agreement (FTA) was expected to be signed in August between the two countries. The two sides also reviewed the co-operation in the field of agriculture and railways. Possibilities of joint venture in manufacturing of phosphate fertiliser was also discussed.

Muscat's Ambassador Mohamed Said Mohamed Al-Lawati discussed the role of Pak-Oman Investment Company in promotion of economic co-operation between die two countries. He said Muscat by financing various projects has been instrumental in accelerating development in Balochistan.

It was also noted that Pak-Oman micro finance is playing a positive role in poverty alleviation. The two sides agreed to accelerate implementation of various projects in Balochistan costing around $27.5 million being financed through grant from Muscat.

The two sides also noted positive development of purchase of 65 percent shares by Pak-Oman Joint Investment Company of World Call shares, its interest in telecommunication and power sector. The Muscat envoy also expressed the interest to develop tourism in Balochistan. Ishaq Dar assured the envoys of his full co-operation in promoting the increased economic ties.

Business Recorder [Pakistan's First Financial Daily]
 
'Pakistan and Turkey need to expand trade to $1 billion'

ISLAMABAD (April 20 2008): Pakistan has strong political and defence relations with Turkey, but efforts need to be made to expand trade to one billion dollars within the next two years, which at present amounts to $6.9 million.

This was stated by Foreign Affairs Minster Shah Mahmood Qureshi at a joint press briefing here on Saturday with his Turkish counterpart Ali Babacan, who especially has come to felicitate the government for smooth transfer of power.

"We have excellent defence co-operation, and both sides desire co-production in defence, which is of mutual benefit, for which a common approach is to be adopted to initiate "strategic dialogue between the two countries at foreign ministers level to further comment our relations", Qureshi said.

He emphasised that both countries have to revisit their approach on Afghanistan issue as they have the potential to play an important role in reconstruction and stability of Afghanistan.

Joint working group is of great significance. Its meeting was scheduled for January 2008, which was postponed due to the death of Benazir Bhutto. Now it is planned for May, 2008. The two countries also agreed on third round of tripartite talks among Pakistan, Turkey and Afghanistan in May. Summit meeting is to be held in June.

Reciprocating, Turkish Foreign Minister congratulated the people of Pakistan for their commitment to democracy and holding fair and transparent elections. "Turkey and Pakistan have unique nature of relations as we share similar concern on all regional and global issues," he said, adding that Pakistan has the strength to overcome all challenges.

"Turkey stands by its commitment to help Pakistan in its development," he concluded. Responding to a question about relations with Pakistan as opposition parties have been elected to power, but Turkey had good relations with Musharraf Government, he asserted that there are strong signals of solidarity as the coalition Government in Pakistan has been given vote of confidence by the opposition, (Musharraf Government).

Qureshi said that Pakistan and Turkey have deep-rooted ties that go beyond individuals and beyond Governments as they are higher than Himalayas and deeper than Indian Ocean. Replying to a question about reported arrests of Turkish nationals involved in acts of terrorism, Ali said: "Terror has no boundaries and no religion. It is a global threat; no one is immune to terrorism." But later on Qureshi said these reports were baseless.

Business Recorder [Pakistan's First Financial Daily]
 
Pakistan and China to sign MoU on economic cooperation on April 23

BEIJING (April 20 2008): Pakistan and China will sign a Memorandum of Understanding (MoU) on April 23 for expanding economic co-operation between the two countries. The MoU will be inked between the Lahore Chamber of Commerce and Industry (LCCI) and Hangzhou Federation of Chambers and will cover all the major areas of co-operation. These include enhancing trade, exchange and transfer of technologies between Pakistan and China.

"The MoU will help the Pakistani businessmen to have maximum interaction with their Chinese counterparts with the objective to give boost to the bilateral trade", said the President of LCCI Mohammad Ali Mian while talking to APP. The President LCCI, who is visiting Shanghai to attend an International exhibition on Plastic, will hold meetings with the members of Chinese Plastic Association and other businessmen.

He has also been officially invited by the Federation of Hardware and Tools of Jiangzhou province to inaugurate a grand exhibition on April 22. The Governor of Jiangzhou will also attend the ceremony. The President LCCI has also attended the famous Canton Fair and held very successful meetings with the organisers of the fair.

Business Recorder [Pakistan's First Financial Daily]
 
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