Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan to pass on oil price rises automatically ​

Sunday, June 15, 2008

ISLAMABAD: Pakistan will automatically pass on any increase in world oil prices to domestic consumers from next month, and phase out subsidies entirely by the end of 2008, a senior official told Reuters on Saturday.

The government overshot a budget allocation of 15 billion rupees for subsidies by a whopping 160 billion rupees ($2.4 billion) in the past year because it failed to pass on any increases when oil prices doubled during the period.

The government official said that because of the subsidies consumers were paying the equivalent of $70 for a barrel of crude, almost half the prevailing international market price.

“Starting by July 1, 2008, consumer fuel prices will be increased periodically over and above the international price increases, to reach a parity between domestic and international prices by end-December 2008,” the official said, requesting anonymity.

Pakistan is currently paying the following oil subsidies based on per litre average international prices for petroleum products in May; 44.11 rupees (66 US cents) on kerosene, 37.07 rupees on high speed diesel, 33.65 rupees on light diesel oil, 7.15 rupees on motor spirit, and 4.37 rupees on high octane blending component.

The government is also aiming at slashing electricity subsidies given to the Water and Power Development Authority (WAPDA) to 3 billion rupees in fiscal year of 2008/09 from the current 21.3 billion rupees.

Pakistan to pass on oil price rises automatically

 

[Neo]

Impact of GST hike estimated at Rs75bn ​

Sunday, June 15, 2008

KARACHI: Business community leader Siraj Kassam Teli has estimated that the overall impact of 1 per cent increase in sales tax will be Rs75 billion and has urged the government to withdraw it along with 35 per cent letter of credit margin.

He said the increase in sales tax from 15 to 16 per cent would have a negative impact on the cost of production, leading to a rise in prices of all items and absorbing 20 per cent increase in salaries of government employees.

“Most of the business leaders belonging to the Karachi Chamber are disappointed, frustrated and even angry over being heaped on with unbearable burden of taxes and levies and hike in GST rate from 15 to 16 per cent, which will push the production cost up and put consumers under more stress,” he pointed out.

“Then there is fear of retaining 35 per cent margin on imports and possible discontinuation of research and development (R&D) subsidy on textile exports as the budget is silent on these issues.

“Adding salt to injury is the fact that real money-minting sources like stock exchange, real estate and agriculture have been kept out of the tax net or if there are some levies these are mere eyewash and cosmetic,” Teli stated.

According to him, overall the budget carried nothing to attract investment, boost industrial production, increase exports and reduce cost of doing business. He said the industrial sector of the country was losing its competitive edge in the world market due to high cost of doing business.

Teli noted that a new return for sales tax had been prescribed which demanded information about unregistered buyers, adding in the past too that kind of exercise was undertaken but could not be implemented.

He was of the opinion that “at this point in time where we are faced with severe economic crisis and the government has set a lower target than last year for the growth of the industry, this kind of action can prove to be a backlash and, therefore, it should be deferred for a better time.”

Teli further noted that the value-added textile sector used to get research and development (R&D) support and yet in the budget there was no indication whether the support would continue during fiscal year 2008-09 or not. Likewise, there was nothing about export refinance scheme. He urged the government to continue the scheme in 2008-09.

He also criticised the imposition of 10 per cent withholding tax on industrial electricity consumption bills, saying that would have a negative impact on industrial production. He demanded all incomes from trade, business and agriculture to be taxed and all transactions documented.

He said there was no incentive available for establishing new industrial units in the country, adding 90 per cent of the incentives were given only to those investors who had established units in rural areas.

However, he appreciated enhancement in duty on 300 luxury items, removal of 5 per cent duty on crop insurance, increase in basic pay and pension of government employees, Benazir income generation programme, zero-rated duty on energy savers, etc.

Teli said the budgetary targets were unrealistic and might not be achieved and saw several minibudgets coming in near future.

Impact of GST hike estimated at Rs75bn

 

[Neo]

Wheat sought from US to ease shortage​

WASHINGTON, June 14: Pakistan is close to getting $500 million from the World Bank and is also seeking 500,000 tons of wheat from the United States to deal with the food and energy crisis threatening to cripple its economy.

The wheat will be provided under PL-480, a US food assistance programme set up for the world’s poorest states unable to feed their people.

Pakistan’s effort to seek financial and food assistance from the World Bank and the United States was revealed by US Assistant Secretary of State Richard Boucher who assured Islamabad of Washington’s continued support to its efforts for dealing with the economic crisis.

“They’re talking to the World Bank about the loans and help and we’re involved in that as well,” a transcript released by the State Department during the weekend quoted Mr Boucher as saying.

Mr Boucher, who looks after South Asian affairs at the State Department, also expressed a strong US desire to help the democratic process in Pakistan.

“We’re looking in the longer term at how we take advantage of the democratic opportunity to offer broader and deeper support to Pakistan generally,” he said.

“But they’re also dealing with some immediate problems, and we are taking what steps we can to help them with that. And we’re looking at things like food problems and financial problems and seeing what we can do.”

Sources in the World Bank told Dawn that a World Bank and IMF delegation visited Islamabad last month for talks on a $500 million one tranche, development-support credit. Negotiations completed in early June.

The proposal now awaits a final approval from the bank’s board of directors, which is expected to give its approval by the end of this month or early July.

Pakistan also appealed for food assistance from the US earlier this month when M. B. Abbasi, a special envoy of the prime minister, visited Washington.

He brought a letter from Asif Ali Zardari for Senator Tom Harkin, who chairs the US Senate Agriculture Committee, requesting 500,000 tons of wheat to handle the food crisis.

Later, Pakistan submitted a formal request for food assistance under the PL-480 US food programme. Pakistan received a lot of assistance under this programme in the 1960s but opted out of it, claiming that it produces enough grains to feed its people.In 2001, when faced with a famine, Pakistan received a one-time assistance of $70 million under PL-480.

Under this programme, the wheat has to be purchased in the United States and shipped to the recipient.

Wheat sought from US to ease shortage -DAWN - Top Stories; June 15, 2008

 

[Neo]

Sindh budget size tipped at Rs280 billion​

KARACHI, June 14: The size of Sindh budget for 2008-09, being presented in the Sindh Assembly on Monday, is being tipped at Rs270 to Rs280 billion.

Earlier, a pre-budget meeting of the Sindh Cabinet would give formal approval to the budget proposals on Monday morning.

Official sources indicate that there would be a 10 per cent rise in revenue expenditure in the budget to about Rs200 billion from Rs181 billion in 2007-08.

The development outlay is being increased by almost 24 per cent to Rs65 to Rs70 billion as against Rs50 billion in the current fiscal year.

Like other provinces, the Sindh budget too depends on funds from Islamabad to the extent of 80 per cent.

The federal budget documents for 2008-09 show flow of about Rs169 billion funds from Islamabad to Sindh as against Rs141.59 billion in the current fiscal year.

The increase in the share of funds from Islamabad is because of two reasons: the expected rise in the collection of taxes in 2008-09 to Rs1.25 trillion from hardly Rs1,000 billion in the current fiscal year; and increase in overall share of provinces in the federal divisible pool to 43.75 per cent in 2008-09 from 42.50 per cent in 2007-08.

After the sixth National Finance Commission (NFC), headed by former prime minister Shaukat Aziz, failed to reach a consensus in 2005 and a seventh NFC was constituted which never held any formal meeting, President Musharraf gave his formula in 2006.Under his interim order in July 2006, the provinces were given share of funds on the basis of their respective population, but the overall vertical distribution between provinces and the federation was changed.

For 2006-07, the president’s interim order set a share of 41.50 per cent in federal divisible pool for provinces, raised to 42.50 per cent in 2007-08 which would be 43.75 per cent in the next fiscal year.

If the reconstituted NFC fails to give any award, the provinces are indicated to get 45 per cent in 2009-10 and then onwards 46.25 per cent.

For the current fiscal year, the federal budget documents indicate an initial share of Rs102.09 billion, which, however, was brought down to Rs99.29 billion in the revised estimates, showing that the federal government was unable to recover projected taxes of Rs1.025 trillion.

Sindh’s share in the divisible pool is expected to increase to Rs126.12 billion in 2008-09 depending entirely on how efficiently the Federal Board of Revenue collects projected amount of Rs1.25 trillion. But a visible cut in the share of direct transfers is more than visible which has led to exchange of communication between Karachi and Islamabad. Under direct transfers, the provinces, including Sindh, gets share in royalty on crude oil, natural gas, gas development surcharge, excise duty on gas and share in provincial GST.

Initially, the federal budget showed Rs42.05 billion as direct transfer to Sindh in 2007-08. In revised estimates, it was increased somewhat to Rs42.29 billion, but for 2008-09, the federal budget shows Sindh’s share in direct transfers at Rs40.79 billion which is less than Rs42.29 billion shown in the revised estimates for 2007-08. This cut in share, particularly of development surcharge, has come as a surprise to officials in Karachi as CNG is being brought under development surcharge levy which should increase Sindh’s share as a large number of CNG stations and number of gas-run vehicles is highest in this city.

Wages of almost half a million employees in Sindh government is the single largest expenditure component of the budget that eats up more than Rs60 billion.

A rise in salary and promised employment to 40,000 more persons would push wage bill to Rs72 to Rs73 billion. The pensions are also being increased. Analysts estimate about Rs80 billion on wages and pensions only.

A constant increase in development outlay in every budget has become a prestige issue with every government. Analysts criticize planners for overlooking linkages between the development and current expenditure budget.

“Construction of a school building under development programme puts a demand on expenditure budget in the following years to provide furniture, basic facilities and employ teachers,” said an analyst.

Sindh Education Minister Pir Mazharul Haq says that there are 7,500 school buildings vacant because of no provision for employing teachers and other facilities. There are vacant dispensaries and basic heath unit buildings.

Sindh budget size tipped at Rs280 billion -DAWN - Business; June 15, 2008

 

[Neo]

Trade policy to aim at improving textile exports​

* Policy to include 10 major initiatives for textile sector​

ISLAMABAD: Trade Policy 2008-09 would include ten major initiatives for enhancing textile exports from the country.

Federal Minister for Textile Industry and Commerce, Chaudhry Ahmed Mukhtar in a written reply submitted to the National Assembly informed that in order to enhance the textile exports, many initiatives were under consideration for inclusion in Trade Policy 2008-09.

He said all stakeholders were being consulted for formulation of trade policy, Trade Policy 2008-09 would include 10 major initiatives i.e. opening initiatives for minimisation of contamination in cotton.

Major new initiatives to include, hiring of technologists from abroad, like Society of Dyers and Coloration London. Payment for services of local and foreigner fashion designers, support for opening of export offices abroad by renowned textile manufacturers.

It included technology up gradation support for import of machinery and equipments and support for undertaking benchmarking studies of Pakistani textile manufacturing units. Training of middle management in textile sector, financial support for establishment of retail outlets abroad with own brands.

Trade Development Authority of Pakistan (TDAP) would formulate delegations of textile sector for United States, United Kingdom, Germany, France, Belgium, Canada, Ukraine and Italy. TDAP would also organize participation in international textile fairs.

He also informed Textile Industry Ministry was also taking initiatives to improve textile exports, including the launching of a well-organised Human Resource Development Programme (HRDP). This would involve hiring international consultants to fill the shortage of textile graduates at all sector levels — from ginning to garments.

To fill the shortage of textile trained shop floor manpower in the textile chain especially skill development plan. To establish world-class training institutes and up grade existing ones to develop know how for synthetic spinning, weaving, processing, dying and finishing.

Encourage production of organic cotton and ensure cultivation of BT cotton and removal of impediments in this regard.

Attract investment in common energy generation, distribution, facilities and augmentation of energy conservation programme.

To attain economies of scale in textile sector, provide incentives to weaving sector and encourage becoming formal one to enhance its productivity by introducing and installation of modern machinery.

To establish world class accredited labs to check colours and final products. To provide market and product diversification especially in garment exports and support to this sector for making it cost effective.

To establish brand names abroad by encouraging local textile entrepreneurs to establish cotton where houses in Pakistan.

Initiatives are also underway to establish integrated supply chain and warehouses besides availability of skill manpower by establishing labor technical training facilities. Development of chemicals, trims and accessories industry on international standards, helping industry by devising ways and means to check wastage in the mills and factories, so that the losses may be controlled.

Strengthening of cotton and synthetic research institutions in the country, interaction with international companies and establishments of joint ventures.

Technology up-gradation right from ginning to garment sector to make them most productive and cost effective by introducing modern and latest machinery and techniques. To enhance coordination among federal, provincial and donor agencies and stakeholders for infrastructure development and human resource development and supply of good quality raw materials.

The house was also informed, in written reply, that MINTEX is also establishing garment cities at Faisalabad, Lahore and Karachi and one at Multan which are at advance stage.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Govt plans to generate extra 2,200MW in 2008-09​

ISLAMABAD: To meet energy shortfall, the government has planned to increase power generation capacity to 22,297 MW in 2008-09 from 20,097 MW in 2007-08 with net addition of 2,200 MW.

The expected increase in power generation includes 1,297 MW of rental plants, 615 MW of IPP’s to be added in the WAPDA/PEPCO system, whereas 205 MW of Korangi Thermal Power Station (KTPS) and 200 MW of IPP are expected to be added in the KESC system.

In addition to already operating 300 MW Chashma Nuclear Power Plant (C-1) since 2001 and under construction unit C-2 of same capacity, two more units (C-3 and C-4) of 300 MW each are planned at Chashma and are expected to be commissioned by 2014 and 2015 respectively. Furthermore, 1,000 MW unit at Karachi has already been conceptually cleared.

The detailed engineering and design of Diamer Bash Dam project has been completed and was under final review by WAPDA. Tenders for construction of the dame are expecting to be floated in the press soon, whereas construction of the dam was expected to be start in the middle of the year 2009.

For enhancing power generation capacity, the government has allocated Rs 76.2 billion including Rs 16.320 billion as foreign aid in the annual Budget 2008-09.

To overcome the power shortage and reduce the extent of load shedding, a total of 1,500 MW thermal power projects at Dadu, Guddu and Faisalabad have also been envisaged during 2008-09 with average capacity of 500 MW each.

Two hydropower projects of Northern Areas include Naltar-III (16 MW) and Naltar-V (14 MW) have also been envisaged in 2008-09. In respect of AJK, two hydropower projects namely, Battar (3.2 MW) and Dhannan (1.7 MW) are also under active consideration by the government. To cater the growing demand of power in the country, to increase the efficiency of system network and to reduce power congestion in the power system, multiple projects for construction of transmission lines and grid station, extension of feeder lines and installation of capacitors are under consideration by the respective DISCOs.

Daily Times - Leading News Resource of Pakistan

 

[Vinod2070]

The wheat will be provided under PL-480, a US food assistance programme set up for the world’s poorest states unable to feed their people.

I remember reading about how India was also dependent on this PL-480 in the early 60s and it was a ship to mouth existence.

Thank God those days are behind us.

India was considered a basket case in the west those days.

 

[Neo]

Pakistan attractive destination for investment: Musharraf ​

RAWALPINDI (June 15 2008): President Pervez Musharraf said on Saturday that the economic reforms of the country are creating an enabling environment for the private sector to become the engine of growth, and added that Pakistan has become one of the attractive destinations for investment due to its liberal and investment-friendly policies.

He made these remarks while talking to Dr Detley Rose, Chairman of Polysius AG Germany, who called on him. Talking about the attractions Pakistan offers to investors the President said that there are tremendous opportunities that would benefit not only Pakistan but also the investors because of the location of the country between Central Asia-South Asia, Western China-Afghanistan and India.

The Polysius Chairman said: "We are investing in Pakistan because of the economic buildup in the country, which we have witnessed in the past seven years. We continue to look for venture partners and long-term partnership for investment in Pakistan." Pakistan has many major advantages some of which are its important geo-strategic location, good lucrative market of 160 million people and the huge incentives the country offers for investment in sectors like energy, cement, telecommunication, mining and construction, he added.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

11-month government borrowing from SBP reach Rs 562 billion ​

KARACHI (June 16 2008): The government's borrowing from the State Bank of Pakistan (SBP) has reached new peak of Rs 562 billion during the current fiscal year. According to SBP data, during July-May period government borrowing from banking system for budgetary support has gone up by 172 percent.

After the current upsurge net government budgetary borrowing from banking system has mounted to Rs 361.221 billion mark during the July to May 31, 2008 as against Rs 132.810 billion during July to June of 2007. The central bank statistics depict that major up surge was witnessed in the borrowing from State Bank which amounted to Rs 562.569 billion during July-May (2007-08) which previously stood at a negative position of Rs 26.464 billion during same period of last fiscal year.

The government sector budgetary borrowing from banks stood at a negative position of Rs 201.348 billion during this period as compared to 159.274 billion in corresponding period of last fiscal year. Overall government budgetary borrowing on June 30, 2007 stood at Rs 810.053 billion and after the current year's borrowing of Rs 361.221 billion, the overall government budgetary borrowing balances has reached new peak of some Rs 1171.274 billion.

"Below the target tax collection, subsidies on commodities including oil and wheat, increasing government's expenditure are the chief reason behind this huge budgetary borrowing," said an economist.

The extraordinary rise in oil prices in the world market and no increase in the oil prices in the local market compelled the government to pay billions of rupees subsidy on petroleum products.

Due to sudden crisis of wheat the government had to import wheat to meet local demand, and wheat was also being distributed to flourmills at subsidised rates.

The Federal Minister for Finance, Naveed Qamar, has announced a number of measures to address this matter. A new borrowing instrument, to be called Government Commercial Paper, has been designed and will be launched shortly, which will be available on tap from all authorised commercial banks for maturities of 3 months and 6 months and 1 year.

In addition, the government has announced that new products of shorter maturities will also be introduced in the National Saving Schemes and pricing on all government borrowing instruments will be made attractive and competitive with market rates. The federal government believes that with these changes, dependence on central bank borrowing would decline considerably.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'Fictitious' charges at ports: $147 million draining out annually on imports alone ​

KARACHI (June 16 2008): An enormous amount of $147 million is draining out of the country annually on imports alone (leave aside the exports) due to "fictitious" on-port recoveries by the shipping lines, agents and terminal operators.

According to sources the traders, both importers and exporters, were being charged under different "fictitious" heads in violation of the applicable rules and international best practices.

They said the terminal operators and shipping agents were charging a levy from the traders in the name of Terminal Handling Charge (THC) and "delivery" or "R&D" which were not specified in Schedule 9 of a federal government backed Implementation Agreement.

Sources said under THC the Karachi International Container Terminal (KICT), Pakistan International Container Terminal (PICT) and Qasim International Container Terminal (QICT) were charging US $45 per twenty-foot container as "delivery" or "R&D".

Terming recoveries other than specified for specific performance in Schedule 9 as "unjustified" and "unlawful", it is said the Schedule had no such provision which could justify collections in the name of "delivery", "R&D" charge and a specific amount like US $45.

They said that according to an estimate at least 800,000 twenty-foot equivalent units (TEUs) were being landed and shipped annually through the said terminals where Rs 8,500 were being charged by the shipping lines/agents and Rs 3,500 by the terminal operators. Thus, taking the drained amount to Rs 9,600 million or US $147m on import alone, leave aside the exports, sources added.

They said the terminals and shipping agents were even ignoring calculation of the charges which are recovered under what they said fictitious heads.

They said while the terminals were charging the end users for "no service" other port operators like the Karachi Port Thrust (KPT) was also collecting the THC in the name of "wharfage for handling".

Such unjustified levies, they said, were not only making end users of the ports pay more and suffer in silence but also jeopardising an already fragile economy of the country by making the exports uncompetitive.

In this regard, sources said a meeting was also held on May 5, 2008 here at Custom House to address the traders' complaints against shipping lines, agents and terminal operators.

Justifying the levies the Pakistan Shipping Agents Association (PSAA) had told the meeting that the shipping agents were recovering the charges as a part of international tariff which was ultimately to be paid to the terminal operators.

On the other hand, the three terminal operators had pleaded that they were charging for "other services" being provided by them at terminals and their action was in line with international practices, they said.

The house, sources said, had formed a committee consisting of representatives from Pakistan Customs, Karachi Chamber of Commerce & Industry (KCCI), Karachi Custom Agent Group (KCAG), PSAA and Terminal Operators to study the issue.

They said it was decided that the committee would visit, which would be funded by the three terminals and KCCI, some ports of developing countries like Mumbai, Chittagong and Colombo within a month time.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

No likelihood of ban or duty: 'rice export to cross $2bn next year' ​

KARACHI (June 16 2008): The country's rice export is expected to cross the level of $2 billion in the next fiscal year. Previously, Pakistan became billion-dollar club member in FY06 when rice export amounted to $1.2 billion for the first time.

"The next fiscal year will be the golden year for the country's rice export, as after increase in the rice cultivation area, production of paddy will increase by 30 percent in next season", Azhar Akhtar, Chairman, Rice Exporters Association of Pakistan (REAP), and Abdul Rahim Janoo, a former chairman, said while talking to Business Recorder on Sunday.

They said that now rice export has become a major source of earning substantial amount of foreign exchange and there is no threat of ban on rice export or imposition of duty on it.

"The higher authorities realise that any step against rice export will deprive the country of a huge amount of foreign exchange", they said. Speaking at a function hosted by Mehboob Ahmed, member managing committee of REAP, Azhar said that there would be shortage of over 8 million tons rice as total production was being forecast at 441 million tons against the total expected consumption of 449 million tons in the world.

He said that the potential global markets are available to buy Pakistani rice, which is unique in its quality and taste. "We can earn better prices of our rice by adopting a balanced trade policy", he said.

He advised the rice exporters to avoid aggressive selling and asked them to adopt balanced selling practices. "The aggressive sale of rice normally gets less price of this commodity while on the other hand, it creates shortage in stock in the second half of the year", he added.

He briefed the REAP members about meetings with government officials during the last two months and said that REAP will always fight for the interests of all stakeholders of rice and for the trade of this commodity to earn more foreign exchange for national exchequer.

He said that the country could get more foreign exchange through value-addition of this commodity. "We can also get very attractive prices with branding." However, he added that branding was a very difficult task. He appreciated the services of Vice Chairman REAP Abdul Baseer for collecting figures and compiling data of exports of all verities of rice.

Janoo said that REAP is one of the nine trade bodies, which has got trade body licence. He said that the rice trade will increase tremendously in future and the government will get huge amount of foreign exchange through export of this commodity.

He invited the younger, active and educated members to come forward to submit their nominations for the elections of member REAP managing committee. "We took charge of REAP in a very difficult time, but with long efforts and cooperation of our members now the rice trade has become the second biggest resource for earning foreign exchange", he added. He said that the REAP is now the second largest trade body in the country.

Abdul Baseer said that the Rice Advisory Board has become re-active. The board held a meeting of all stakeholders of rice trade and discussed various issues. "We are working for development of new rice varieties and the growers will have new seeds soon having better yield", he said and added that the new seed of basmati 515 variety has been approved and will be available for cultivation soon. New seeds of some other varieties including "Shahkar" will be approved soon, he said.

Mehboob said that the main objective of the gathering was to discuss issues of rice trade. He announced to award trophies to rice exporters, who had contributed a lot for rice trade.

A former chairmen of REAP, Abdul Majeed, and Abdul Aziz Maniya and other REAP members including Rafiq Salman, Shamsul Islam, Anees Majeed, Usman Shaikh, Javed Tarmohammad, Rauf Chapal, Shahid Ghori and others also spoke on this occasion.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

16 power projects underway in Balochistan ​

QUETTA (June 16 2008): As many as 16 electricity supply schemes are underway while 91 projects in water supply sector were being implemented in various parts of Balochistan, official sources told APP here Sunday. The government would construct 54 more small dams in different districts aimed at resolving water scarcity problems in the province.

They said Prime Minister Yousuf Raza Gilani has approved Rs 640 million for launching electricity projects for Chaghi and Dalbandin towns.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

5000 megawatts power generation plant to be set up in Multan ​

MULTAN (June 16 2008): The Director General (DG), Wapda, Tahir Basharat Cheema has said that government, using coal as fuel, is planning to set up 5000 MW power generation plant within the next few years. He said this while speaking at a ceremony arranged by Multan Chamber of Commerce and Industry.

He said that the country's survival largely depends on proper use of its coal reserves. '184 billion tonnes of coal reserves were available in Thar area alone', Cheema said. He expressed concern over the fact that Pakistan was generating only 0.1 percent electricity from coal.

Referring to the performances of neighbouring countries, he said China generates 74 percent electricity from coal and India generates 55 percent.

Further, Wapda DG said that three rental powerhouses would start generating 1067 MW of electricity by the end of this year. The fourth rental powerhouse would start generating 192 MW power from December 2008 at Piran Gaib power station, Multan. The station would have another 350 MW electricity through a power plant, he added. The Muzaffargarh Thermal powerhouse was not generating energy up to its capacity of 1350 MW. In fact it was generating only 1000 MW of electricity at the moment which would be increased by overhauling its turbines, Cheema stated.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Computer industry not happy with budget ​

ISLAMABAD (June 13 2008): The local computer industry has expressed serious concern over the budgetary measures announced for fiscal year 2008-09, terming it a continuity of the previous regimes' ill-conceived policies for industries.

Pakistan Computer Association President Munawar Iqbal told Business Recorder on Thursday that the budget has not provided any relief to save vital and much-needed computer industry. The major demand to withdraw sales tax on computer has not been accepted, maintaining serious implications for the industry.

He said that the decision made by previous regime to levy 15 percent GST on computer industry badly hampered its growth, which is significant and prerequisite for all other sectors of the economy. The industry was expecting a better approach from the new government, but the budget has failed to translate this claim into reality. It has offered no relief for the industry, which is being considered as backbone of the economy in other countries of the region and enjoys a highly privileged status.

He said that the efforts to retain the 15 percent sales tax has escalated the computer hardware prices and the implementation is dampening the imports every year. As a result of increasing prices of PC and computer equipment, students all over the country are reluctant to opt for computer subject. Under these circumstances, investment in this sector is squeezing by each passing day and we have provided all the data in this regard so that the new government may be able to understand the gravity of the situation.

He said for the last two year our association appealing for waiver of 15 percent GST on the import of computers and all other related equipment at least for next few years so that the industry could get out of present fragile situation. The association also pleaded that the imposition of GST has nothing to do with the revenue but it would hurt the booming IT industry of Pakistan. Moreover, software export has also suffered due to this decision. Iqbal urged the government to reconsider the stance towards computer industry and evaluate the implications of GST on realistic grounds.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Agriculture-sector to be modernised in Sialkot ​

SIALKOT (June 16 2008): The district government, Sialkot has initiated a well-designed plan to modernise the agriculture sector scientifically to attain maximum output of crops in Sialkot, Daska, Pasrur and Sambrial tehsils of the district.

Official sources told Business Recorder on Sunday that district government was making adequate efforts for introducing new agricultural technologies under its programme to increase per acre yield of crops in Sialkot district.

'The government is paying especial attention to effective agricultural research, improvement of irrigation system, and ensuring sufficient availability of quality seeds in the district', they said.

Green houses would be set up in Sialkot, Daska, Pasrur and Sambrial tehsils while at least 67 watercourses would be created. Out of 67, 50 watercourses would be excavated in canal areas and 17 in Barani areas. Further, Rs30 lakh were spent on setting up of agriculture laboratory while Rs70 lakh were being used for establishment of veterinary centres in the district. The work on ongoing livestock schemes costing Rs 58.70 lakh is full swing and more funds amounting to Rs 31.67 lakh were being provided for the completion of the schemes sources added.

Business Recorder [Pakistan's First Financial Daily]