Pakistan Economy - News & Updates - Archive

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Chemical agriculture​

PAKISTAN has been swamped by inferiority complex of its policy makers, a majority of whom were never leaders but were followers. You might put the same question to me and I would plead guilty for not trying hard enough and for not being persuasive enough to force my point of view. I have always believed in probabilities and possibilities and not on scientific certainty.

A human failing that brought me in conflict with pseudo scientists. The pseudo scientists that I have been talking about are either obsolete or simply technologist and they have been suitably brainwashed by the West. What little is left of conviction is made up by the juggernaut work of the multinationals corporations [MNC] who do not want the locals to apply their mind for that would cut into their profits and they are the shylocks looking for every pound of flesh irrespective whether the blood flows from the wound or not.

It was since 1987 that I have been advocating that chemical fertilisers especially DAP is harmful and injurious to our soils. That nitrogen is not balanced with either phosphate or potassium. The MNCs are a difficult power bloc and they can steam roll any one. If you do not believe me then you have to either see Tim Sebastian’s hard talk in which Naomi Klein authoress of ‘No Logo’ talks of the helplessness of the developed countries what to speak of the developing countries, which live in a soft state all the time vis a vis these MNCs. When chemical agriculture came in 1960 there were food shortages and Borlaug cashed in on the state of shortages.

Chemical agriculture was supposed to be the miracle that would ward of hunger and poverty forever. It did so for a while but the unintended consequences of the continuous use of chemicals led to alkaline soils development and we know that within a certain framework that was counterproductive so far as agriculture productivity was concerned. This is now an albatross round the neck of the farmers and the country. If everything remains as they were the year before then each year the farmer has to use 10 per cent more of the chemical fertilisers.

The fact is that with prices going as they are cartelisation of the producers of fertiliser has been used by developed countries to force the hand of the developing countries. The industry headquarters is in Atlanta USA where all this price fixing goes on. Neo liberal polices are not used when it comes to cartelisation of this kind. This is subtle imperialism of the West and is of a more sinister form as policy makers of developing countries are unable to understand the implication for countries like Pakistan. The price fixation is due to capital cost that is based on monopoly pricing for machinery and the royalty that is charged in perpetuity.

To overcome this, Sartaj Aziz as the minister devised an equalisation formula for the inefficient Fauji fertiliser by equalising the price of the most efficient producers and the least efficient and dividing that by the number of players. The negotiated price of machinery for the new manufacturing unit as doctored and was much more than the given international price. Despite the lopsided benefits to Fauji fertiliser Sartaj Aziz’s formula was a pragmatic solution to a problem that our policy makers had used for the setting up of an expensive fertiliser industry.

When such an industry comes in to play then the manufacturers make sure that it is priced such that it can, in the foreseeable future ensure, that the commodities produced by the use of these fertilisers are not able to compete in world markets. The same thing happened with the Fauji bin Qasim for its DAP plant with one exception that they also started manoeuvring for subsidies which they got thanks to the then commerce minister. He gained rich dividends for his act of misplaced generosity to the few and polices against the many. In return, he was a major player in some of the most lucrative projects that the government gave to him without due process.

If not chemical agriculture what then? The advantages of organic agriculture have not been understood by our policy makers who are in the habit of taking short-term measures. In an arid agriculture economy it is necessary to understand the advantages of organic agriculture. There are methods available for the conversion of organic waste in short time, a method that was devised by the Japanese and upon which we came to by accident. The decomposed humus is a source of 90 to 95 per cent soil nitrogen including that which is cycled through microorganisms.

When organic matter makes up more than two per cent of the soils it can be a major source of available phosphorous. At the moment our soils are either completely devoid of organic matter or very insignificant amount given our use of chemical fertiliser.

It is a major source of the strengthening necessary to create strong soil structures with a higher proportion of larger pores that improves water holding capacity and water and air movement in the soils. A requirement that is essential on the Pakistani scene because of shortage of water.

As a result of chemical fertilisers our soils have become sieves with much reduced water holding capacities. It is also true that such organically developed soils provides 30 to 70 per cent of the negatively charged sites that hold nutrient cations plants can use [unheard of by Pakistani farmers-large or small]. The electrical property this gives to the organic matter leads to the ability of the soil to act as a buffering agent, moderating the tendency to change ph when alkaline or acid substances are added to the soil.

Organic matter also works as a Chelate, that is, it forms compounds with metal nutrients (sually iron, zinc, copper, or manganese) increasing their solubility and availability to plants. Besides it supplies carbon for energy to many soil micro-organisms that perform beneficial functions such as nitrogen fixation.

I have given a few of the benefits of organic agriculture. The main problem seems to be in handling and spreading of the organic matter in a systematic manner. Conveniences can now be built in to the system thanks to the work of Dr Tahir, formerly dean of soil sciences, University of Faisalabad (now working with his own NGO). A person who is given to convictions and courage despite being ridiculed by all those that were touts to the chemical industry. He has now been able to bag the organic material with various formations in which he has used sugar mill sludge, poultry manure, and has also mineralised the organic material by reinforcing it with gypsum and thus making the organic matter work as chelate and fixing the phosphorous in a soluble manner for the uptake by the plants.

Organic agriculture with its concomitants is such that our soils are improved; the cost of production reduced and the farmer’s rehabilitation made possible. Research elsewhere has shown that the previous held notion that there will be a ten per cent reduction in productivity is now proved to be wrong. In any case what have you got from chemical agriculture in the last five years with all these shortages? The small farmer especially will be a gainer for a bag of fertiliser of these kind cost only Rs300. They have taken away ten years of farmer’s welfare as a result. How unfortunate such crimes go undetected?

Chemical agriculture -DAWN - Business; June 23, 2008

 

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Iraq to award oil contracts to foreign companies, including Pakistan ​

BAGHDAD (June 23 2008): Iraq will award contracts to 41 foreign oil firms in a bid to ramp up production that gives multinationals a potentially lucrative foothold in the nation's huge oil fields, an official said on Sunday.

"We chose 35 companies of international standard, according to their finances, environment and experience, and we granted them permission to extract oil," Asim Jihad, spokesman for Iraq's oil ministry, told AFP.

Six other state-owned oil firms from Turkey, Vietnam, Pakistan, Thailand, Angola and Algeria will also be awarded extraction deals, said Jihad. The agreements, to be signed on June 30, are expected to be short-term arrangements although the ministry has yet to provide a timeframe.

The deal paves the way for global energy giants to return to Iraq 36 years after late dictator Saddam Hussein chased them out, a first step to access to the earth's third largest proven reserves.

"They will have the first right to develop the fields," said Jihad, adding that competitive bidding would come at a later date once the nation's long-delayed hydrocarbon law is passed by the parliament. Companies will be focused on fields in the north and the south where wells and perforations already exist, thus requiring minimal additional investment.

These agreements will be announced alongside Technical Support Agreements (TSAs) with five foreign oil majors. They cover Kirkuk field (Shell), Rumaila (BP), Al-Zubair (ExxonMobil), West Qurna Phase I (Chevron and Total), Missan province development (Shell and BHP Billiton) and the Subba and Luhais fields (Anadarko, Vitol and the UAE's Dome), according to a previous report.

The TSAs are a bridging contract designed to fast-track foreign oil involvement in Iraq.

Business Recorder [Pakistan's First Financial Daily]

 

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The sluggish agricultural growth​

What was disappointing about the performance of the economy in 2007-08 was not so much of its modest or low performance, as much as the vast gap between the very high target set and the reality.

As a result, instead of the growth target of 7.2 per cent, the GDP grew by only 5.8 per cent. This achievement is not too low compared to the last year’s high growth. What is more striking is that all the major targets have been missed. All that has led to inflation to build up to 11 per cent and the food inflation if calculated modestly, to rise up to 15 per cent. That was bound to happen as agriculture made the smallest contribution to growth-- 1.5 percent-- against the target of 4.8 per cent . This is too large a gap. The large wheat crop of 22.5 million tones proved to be rather an exaggeration, judging by the volatility of the market and the hardship of the poor.

The major crops recorded a negative growth of three per cent. Livestock, in view of the high price of meat saved the situation by recording a growth of 3.8 per cent . But that did nor benefit the poor who had to pay a very high price for the wheat flour. Wheat flour price shot to Rs30 a kilo but the small grower was not the beneficiary as he had sold the wheat at a low price. The real gainers by the high price were the big farmers with their large stocks, and the ruthless hoarders and stockists who exploited the situation..

The government has announced the withdrawal of sales tax on fertilisers. This step should have been taken earlier.

Shaukat Aziz as prime minister had glibly announced that if the Indian economy can achieve nine per cent growth, Pakistan can as well. And it can build the momentum year after year to reach 11 per cent as done by China. However, it was not possible to achieve high growth in agriculture or other sectors with frequent electricity breakdowns and regular load shedding. Apart from inadequate and irregular power supply, production has also suffered from high prices of fertilisers, pesticides and diesel.

Adequate protective measures should have been taken to shield agriculture from such external shocks , which were not taken.

In the livestock area, consistent high price calls for greater input by farmers for developing modern cattle and dairy farming. The World Bank has called for an end to food subsidy but it can only be phased out gradually.

Farm loans are not available to small growers, regularly and adequately . And that is one of the results of the tight monetary policy of the government to restrict bank loans. But the State Bank wants other banks to be liberal in granting farm loans to small farmers. This is an area where the government needs to focus. Of course, the overall credit flow to agriculture has picked up pretty fast in recent years.

Unless there is a radically new approach to agriculture, inclusive of land reforms, liberal loan facilities, and cheaper inputs, agri production cannot increase. And with a population of 160 million people increasing at two per cent annually, the country cannot depend on food imports. In fact, agriculture needs new attention and devotion to save it from the rut it has got into.

The sluggish agricultural growth -DAWN - Business; June 23, 2008

 

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Balochistan government to fill 10,000 vacancies: minister ​

QUETTA (June 23 2008): Balochistan Finance Minister Asim Kurd Gailu on Sunday said that the government would fill 10,000 vacancies, including 2400 newly created posts and 7500 already lying vacant posts, during the financial year 2008-09 aimed at reducing unemployment in the province.

Addressing post-budget press conference here at the Officers Club, the Finance Minister, who was accompanied with the provincial Finance Secretary Mehfooz Ali Khan, said that the government was increasing its resources through exploration of natural resources which would also generate employment opportunities in the private sector in the province.

He said that the government had prepared the 2008-09 budget facing financial crisis and constraints, and sincere efforts were underway to overcome the financial constraints in the province. Referring to the Rs 19 billion loan of State Bank of Pakistan (SBP), he said that the provincial government would take up the matter of overdraft of Rs 19 billion with SBP Governor for waiving off the loan, or converting it into soft loan, which would improve the financial condition of the province.

He expressed hope that the province would get more resources after the announcement of new NFC award, which would also help to overcome financial difficulties. Asim said the government had not included new development schemes in the budget as it was committed to complete the ongoing development projects within the stipulated time. Completion of these schemes would benefit the people in the province.

He, however, said that the government had set aside Rs 3.25 billion for launching new development schemes. The amount would be spent on new schemes, in consultation with coalition partners in the government and identifying new schemes by MPAs. Each assembly members is authorised to launch new schemes worth Rs 15 million in his/her respective constituency which should be completed within two to three years.

Finance Secretary Mehfooz Ali said the allocation of funds for development projects had been increased from Rs 35 billion to Rs 55 billion due to increase in material prices in the province. He added that the government had not included any new scheme in PSDP as it wanted to ensure timely completion of the ongoing development projects in the province.

He said the government would make functional all district hospitals and schools with the aim of providing maximum health and education facilities in the province. The government will provide more funds for this purpose, he said.

The finance secretary said that the government would provide scholarships to 24,000 students, while free books would be provided to all students up to matriculation in the province.

He said that the government had also put aside handsome amount for coping with natural disasters. "That is why the current expenditure shows higher amount in the budget than the outgoing year budget.

He said the government had got revenue Rs 30 million from Chamalang coal field. Besides the coal reserves, the field had provided job opportunities to 10,000 people.

Mehfooz said the revenue of the government had increased from Rs 30 million to Rs 260 million from Saindak gold project, and added that the revenue of government was Rs one billion four years ago and now it had increased to Rs 3 billion. He said that the federal government would not only consider the population in the coming NFC award, but it would also regard the scattered population and other issues of other provinces.

He expressed hope that the financial constraints and problems of the province would be resolved after announcement of the new NFC award, and said that the Balochistan government had nominated Dr Gul Faraz Khan as its technical member for the coming NFC award meeting.

He said that the government had called Frontier Corps personnel from other province for maintaining law and order in the province. The provincial government had spent Rs 300 million for the purpose. Now, some wings of the FC had been sent back.

Business Recorder [Pakistan's First Financial Daily]

 

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Options in agriculture​

Given the paradigm shift in agricultural prices in recent months, what are the options available to Pakistan’s policy makers? They need to proceed simultaneously on two tracks. They need to use the significant changes in agricultures terms of trade to provide appropriate incentives to the farming community to produce more and they need to provide additional incomes to the poor, particularly those in the urban areas, to deal with the rise in food prices. For the poor, expenditure on food is by far the largest component of their budget.

Output can be increased in two different ways – by increasing the area under cultivation and by increasing the productivity of the land that is under the plough. As emphasszed by the government of Punjab’s Punjab Economic Report, 2007, Pakistan has reached the limit of expanding the area under cultivation. Land is still available but the country has run out of water.

In fact, agriculture has to compete with other demands for water – by an increasing population living in urban areas and by industry – while the supply is likely to diminish as a consequence of the change in climate. Pakistan is among the countries likely to be severely impacted by global warming. It has to opt for productivity increase and here there are enormous opportunities.

The last time Pakistan saw a significant increase in agricultural productivity was during the period of the “green revolution“– a term coined to describe what happened to the sector of agriculture in many developing countries, including Pakistan. But the enormous success of the green revolution in producing large output increases resulted in complacency. This manifested itself in several different ways, especially in terms of the neglect by public policy makers on agriculture. What suffered in particular was agricultural research.

Pakistan, in keeping with the unfortunate tradition of neglecting education and research, paid little attention to creating the infrastructure required to increase farm productivity. A number of agricultural scientists in Islamabad as well as Lahore, told me that the country had lagged behind not only East Asia but also India. “In crop research we are possibly 10 to 15 years behind India,” said a scientist working in the Islamabad based National Agricultural Research Council, (NARC).

Pakistani scientists speak of two problems in particular about agricultural research. Most agricultural research in developing countries is financed by governments but the Pakistani state did not invest a sufficient amount of resources in this activity. The second problem is the way research is structured. The federal government through the Pakistan Agricultural Research, (PARC), and its component, the NARC, has a significant presence in agricultural research. This is surprising since, under the constitution, agriculture is a provincial subject.

Also, Islamabad is physically distant from the heartland of agriculture with the consequence that the research findings from Islamabad do not get readily disseminated to the farming community. In the provinces, in particular in the Punjab, agricultural research lacks institutional focus. It is disbursed over a number of departments with insufficient coordination among them.

The previous Punjab government took a number of steps to remedy the situation. It created an institutional mechanism for co-ordinating research done by the various agencies and it opted for an institutional model that has succeeded in China. The previous administration in Lahore took the deliberate decision to focus research activities in a number of crop and product based institutions located in the areas where these crops and products are important. The management of the intuitions has been entrusted to autonomous boards of directors that have the representation not only of agricultural scientists and government departments but also of the private sector. This is a different institutional model from the one pursued earlier in which research was located in teaching institutions. India followed that practice – Ludhiana University in the state of Punjab has been at the forefront of that country’s impressive performance in agricultural research. The United States also follows the same model. “We looked at both models and opted for the Chinese practice of entrusting research resources to specialised institutions”, said the former secretary of Punjab’s agriculture department in a conversation.

It is likely that the amount of resources being committed to agricultural research will increase in the next few years. There is a growing recognition in the political and bureaucratic establishments that the state must spend additional money to promote this important activity. However, even with increased attention, results will be slow to materialise.

According to Bob Zeigler of the International Rice Research Institute (IRRI) the time lag between researching a new idea (dreaming up a new seed) and commercialising it is ten to 15 years. In the meantime, while domestic research efforts are being activated, Pakistan will have to borrow from the world outside as it did during the “green revolution” when high yielding seed varieties were imported from Mexico (in the case of wheat) and the Philippines (in the case of rice).

However, even when new seeds are obtained from abroad, they have to be properly tended to maintain their yield. When IRRI-8 rice variety was introduced in 1966, it produced almost ten tons per hectare. The yield has declined to seven tons. According to IRRI, between the 1960s and 1980s, yields of the main cereal crops increased by 3-6 per cent a year. Now annual growth is down to one to two per cent a year, way below the increase in demand. The world, including Pakistan, needs a new green revolution.

Growing crops on the field is one part – the beginning part – of a long chain that stretches from the farmer to the final consumer. There are a number of steps on the way especially when the focus moves to higher value added crops. The private sector has a larger role to play in developing these intermediate steps and in increasing their productivity through research. Supermarkets can be effective in this area. It is encouraging that some of the well-endowed European supermarkets such as Macro and Metro are establishing in Pakistan.

These stores need uniform quality, minimum large quantities, high standards of hygiene and, increasingly, produce that does not add to environmental problems. Once established, they reach out to the farming community to obtain the supplies they need. In the countries that have allowed international supermarkets to get established, half or more of food sales can be accounted by them.

The success of the Green Revolution in increasing productivity and output in the developing world also led to a decline in lending for agricultural development by international development institutions. According to the OECD, the World Bank and other donors cut the share of agricultural lending in development assistance to less than three per cent by 2005, down from 18 per cent in 1979. The sharp increase in food prices in 2007-08 have shocked the donor community back into action. On the eve of the recently concluded international conference on food security organised by the FAO and held between June 3-6, in Rome, the World Bank unveiled a $1.2 billion fast track facility to help combat the impact of rising food prices.

At the start of the meeting, senior UN officials urged nations to eliminate trade barriers, expand research into biotechnology and boost food production with an annual investment of $20-$30 billions “Nothing is more degrading than hunger especially when main-made,” Secretary General Ban k’i-moon told the conference. Hungary people are angry people, warned the Secretary General but his words did not have much effect on rich nations. The Rome Conference did not break new ground, essentially leaving individual countries to cope with a very difficult situation.

Options in agriculture -DAWN - Business; June 23, 2008

 

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Investment under CFS down 9.86 percent ​

KARACHI (June 23 2008): Investment under continuous funding system (CFS) at Karachi share market declined by 9.86 percent (Rs 3.33 billion), ending the week at Rs 30.39 billion from Rs 33.72 billion of previous week.

"The CFS investment declined by 9.86 percent as the investor sentiment remained in the negative zone with decrease interest", Khurram Schehzad, senior analyst at Invest Capital & Securities, said.

The CFS rate for the week rose by 181bps to 16.74 percent due to higher rates observed in the T-bills auction. The CFS touched 17 percent post-auction on Thursday on closing basis. The top-5 scrips by CFS investments were NBP, POL, AHSL, DGKC and PPL which cumulatively accounted for 47 percent of the total CFS investment during the week.

Open interest at the futures counter rose slightly by 39bps on weekly basis to close at Rs 15.89 billion. Conversely, futures spread declined by 317bps on weekly basis ending the week at 3.25 percent. The top-5 scrips by futures investment remained JSCL, MCB, Engro, AHSL and ANL cumulatively accounted for 46 percent of the total outstanding open interest.

Business Recorder [Pakistan's First Financial Daily]

 

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PTDC to set up office in China ​

BEIJING (June 23 2008): The Managing Director of Pakistan Tourism Development Corporation (PTDC), Brigadier (Rtd) Aman Ullah said here, on Sunday that to attract the maximum number of Chinese outbound tourists, the PTDC intended to establish its office in China.

"The setting up of Tourism Office here would help the Chinese tour operators to easily interact with us in sending tourists to our country", he told newsmen after conclusion of the 3-day Beijing International Tourism Expo (BITE).

He however, appreciated the Press and Culture Counsellor at Pakistan Embassy who is at present facilitating in big way to send tourists to Pakistan. During BITE, I met with several tour operators and was delighted to know that most of them had extensive knowledge about our tourist resorts", he noted.

He said that he considered a bright feature in cooperation between the tourist sectors of the two countries.

Brigadier Amman said that Pakistan would celebrate the "Gandhara Week" in the month of November, in which PTDC would invite a large number of Chinese writers, scholars, tour operators and other tourism related officials so that they could see themselves the potential Pakistan offers for them.

The Managing Director PTDC further said that he also intended that Chinese businessmen associated with tourist related business to visit Pakistan, construct hotels and motels and run the same as per their need.

He said that during his meetings, he had given some proposals to tour operators including that if a group of 50 tourists visits Pakistan, we would like to offer them rebated air tickets, rebate in hotels and transport, and if they have any apprehension with regard to law and order that would also be addressed by ensuring foolproof security cover. "We have a large number of world class Buddha sites for the Chinese interested in visiting these religious sites", he noted.

He said that being very close to China, there are number of plus points for Chinese tourists to visit our country as they would pay lesser amounts on buying air tickets or even they can come by road.

Brigadier Aman said that over seventy countries took part in BITE and he was delighted that Pakistan's pavilion got first prize of best organised stall.

Business Recorder [Pakistan's First Financial Daily]

 

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Petronas, Eni make Pakistan gas discovery​

MILAN, June 23 - A consortium that includes Italian oil company Eni SpA and Malaysia's Petroliam Nasional Bhd [PETR.UL] have made an onshore gas discovery in Pakistan, Eni said on Monday.

The discovery was at the Saqib 1A well in the Mubarak exploration block, Sindh province, Eni <ENI.MI> said in a statement.

The block's operator is Petronas Carigali Pakistan Ltd., with a 57 percent stake. Eni has a 38 percent holding and Government Holding Private Ltd. 5 percent.

The well was successfully tested and flowed at 25 million standard cubic feet of gas per day with 60 barrels of condensate per day.

"Eni and its partners are now evaluating the potential of the discovery in order to identify the most suitable development plan," the statement said.

Petronas, Eni make Pakistan gas discovery - Yahoo! Singapore News

 

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Pakistani team meets Tata power plant managing director ​

MUMBAI (June 23 2008): A six-member delegation headed by the Deputy Chairman Planning Commission Salman Farooqui met Managing Director of Tata Power plant here Sunday and shared mutual experiences in the field of power generation.

Later, the delegation visited Tat coal-based power plant. The delegation during its week long visit to India would attend various briefings at different sites of energy, oil and gas, and alternate energy resources besides visiting projects of poverty alleviation.

Business Recorder [Pakistan's First Financial Daily]

 

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Pro-Gas to set up LPG-run power plant at Port Qasim ​

ISLAMABAD (June 22 2008): The Pro-Gas Company will set up an LPG-run maiden power plant of 500 MW capacity in the country. Pro-Gas Company Managing Director Abbas Bilgrami told a private TV channel that PPIB has given the approval for generating electricity fuelled by LPG and this plant costing about $500 million would be installed at Port Qasim here.

Business Recorder [Pakistan's First Financial Daily]

 

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IT department to introduce integrated network at district level ​

LAHORE (June 23 2008): Punjab Information Technology Department has started establishing networking at district level which would create coordination between provincial and district governments to introduce an integrated system in working of public sector.

IT Department, on the directions of Chief Minister Punjab and Chief Secretary, took keen interest and Secretary IT himself visited Kasur, Narowal and Gujranwala districts to review problems and resolved them with the coordination of local district governments.

Information Technology officials have evolved a comprehensive strategy to complete ongoing projects as well as start new plans. It has also been reported that meetings would be held in all districts and DCOs and EDOs were being consulted to form latest networking.

Similarly, keeping in view the firm commitment of the Chief Minister, I T Department is now engaging latest and skilful expertise. Spokesman said that induction of computerised system would enhance government's efficiency and help in confirming "good governance" and also save time of the people. Moreover, projects of Punjab portal and Lahore van are also being implemented.

Business Recorder [Pakistan's First Financial Daily]

 

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'IBM committed to deliver best market-oriented services' ​

ISLAMABAD (June 21 2008): The IMB, a company in IT sector, is committed to deliver its market-oriented services to its customers who have already acknowledged it. "Thanks to the best services and innovative solutions to the problems and challenges within the society, the IBM's image within the company and beyond was rapidly improving", IBM Sales Manager North Pakistan Adnan Siddiqui said this at a seminar on "Paint Your IT Green" organised by the IBM here.

He said the IBM, which was providing services worldwide in every sector, was taking concrete steps to effectively tackle the country's pressing challenges including energy conservation through its need-based services. He said the IBM recognised that the time had come for a broad, integrated, smart systems approach to tackling energy, environment confronting the society, badly.

He said over the past 50 years in developing energy efficient system, the IBM believed that green initiatives could help the business grow successfully through utilisation of its services. System Technology Group Sales System Architect, IBM Middle East, Alistair Innes said on Thursday that IBM was offering effective solutions to challenges and problems in the current era of information technology.

He said IBM's initiatives helped business to improve their operational efficiencies, while striking a more optimal balance between what technology could do and what people. He said the positive link often resulted in greater productivity internally besides enhancing business services for customers. System Technology Group Manager, IBM Pakistan, Ghazanfar Ali gave brief introduction about IBM System Technology Group.

He said IBM established its operation in Pakistan in 1952 and had been successfully upholding its good image through its effective and suitable solutions to challenges especially in economic sector of the country.

"We are dedicated to helping our customers pursue new market opportunities and become more productive through perfect transformation of their business models and innovative application of e-business technology", he observed. He said IBM was the world's leading IT innovator and business solutions provider and capable of integrating industry and technology expertise with research and development to meet their urgent energy, environment challenges.

Later, the speakers fielded different questions posed by the participants regarding IBM New Power Equation-Enterprise Datacentre and IBM Green initiatives followed by virtualisation and server consolidation solutions designed for Efficient Datacentres. IBM Power Systems Sales Manager, Pakistan Muhammad Faisal also spoke on the occasion.

Business Recorder [Pakistan's First Financial Daily]

 

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Rs 2155 million being spent on small dams' construction ​

LAHORE (June 23 2008): The Provincial Irrigation & Power Department (I&P) is spending an amount of Rs 2155 million on the construction of small dams in district Potohar including Jhelum, Chakwal, Rawalpindi and Attock. These schemes besides providing water for the irrigation purposes will also supply clean drinking water to the people of these areas.

Punjab Senior Minister Raja Riaz averred this while meeting a delegation of farmers and political workers of Potohar here on Sunday.

The minister maintained that continuous supply of water for irrigation purposes remained the main focal point. Elaborating further he dilated that a sum of Rs1056 million had already been spent during the current fiscal year while another amount of Rs 1099 million had been earmarked in the next financial budget of 2008-09, he added.

Punjab Senior Minister said that I&P Department was spending Rs 157.198 million for Haji Shah Dam at Hazro, Rs 267 million for small dams in Gujar Khan tehsils, Rs 435 million for Dhurabi and Minwal Dams in Chakwal, Rs 404 million for Phase two of construction of small dams namely Kot Fateh Khan, Shahbazpur, Tatiabara and Sadrial Dam in District Attock, Rs 476 million for Ugham Dam Project at Gujjar Khan, Rs 804 million for Phase two of Dhoke Hum, Mandee, Dhok Jehan and Uthwall/Lakhwal Dam Project in Chakwal and Rs 57 million for Fatehpur Dam at Pind Dadan Khan, Jhelum.

The minister added that a total of 26085 acres of agricultural land would be brought under active cultivation due to these projects. He said the department besides arranging inspection huts would also develop suitable number of irrigation channels, outlet structures and Cofferdams. He impressed upon the farmers to apply progressive methods of cultivation for boosting up agriculture of the region.

Business Recorder [Pakistan's First Financial Daily]

 

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Water management ​

EDITORIAL (June 22 2008): According to a Recorder Report, human development statistics in Pakistan show that only about 65 percent of the people have access to safe drinking water, whereas the government is committed, as a signatory to the UN Millennium Development Goals, to cover 93 percent of the population by 2015.

Meanwhile, the country's per capita water availability has been decreasing at an alarming rate, says the report, due to increase in population and diminishing water resources. Rising groundwater utilisation for domestic and agricultural purposes, has adversely affected groundwater quality, especially in irrigated areas where about 70 percent of the water is supplied by tube wells, and is rendered unfit for drinking.

Adding to the problem are the irrigation demands in the backdrop of extended periods of droughts as well as the rising requirements of the industrial sector. What we will need in another three years' time will be an additional 48 billion m3 of water to meet the growing demands of our economy.

In short, Pakistan is in the company of high water stress countries, and needs to undertake urgent measures to ease the current stress, and also to ensure longer-term water security. Availability of water, especially for drinking, is an underrated issue in this country.

The need for providing easy access to all to this life sustaining natural resource is recognised, but what is not so well recognised is the fact that rapid urbanisation and industrial activity have increased the pressure on the underground aquifers. At the same time, much of the river water needed for irrigation, domestic and industrial uses, goes to waste due to outdated irrigation techniques and lack of awareness about conservation.

True, the government has made some admirable efforts to prevent seepage, through lining of canals and watercourses. But it is yet to popularise modern watering methods such as drip irrigation to prevent wastage that accompanies flood irrigation prevalent in our farms and fields. To make matters worse, for long successive governments at the Centre remained stuck on their insistence to build mega dam projects which, in the case of Kalabagh dam, was met with fierce resistance from smaller members of the federation, leading to a general standstill.

Creditably for it, the new government has decided to construct smaller dams, which is also in accord with the concerns of environmentalists who oppose big dams because of their harmful effects on flora and fauna as well as consequent forced population displacements.

Since we receive ample rain, it would be worthwhile also to benefit from the experience of certain other countries and think about harvesting rainwater. And, of course, there is dire need to create awareness among the domestic users to avoid wastage in their daily routines. Indeed, conservation, on both macro and micro level, is the best answer to the water stress that we face now and expect in the days to come.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Dream of a prosperous Pakistan ​

ARTICLE (June 21 2008): Pessimists are having a field day predicting a bleak future for Pakistan, considering the facts, as they are. Their prognosis may be correct to some extent, but to write off Pakistan totally will be a travesty. We all want to see Pakistan flourishing as a prosperous country, its people at peace, and its coffers full.

The question is whether it is possible, and in the realm of reality? The answer is a resounding 'yes', but how? It all boils down to a resolute, aware and astute leadership, not travelling the oft-beaten track, but hacking out new paths for survival. These new ways exist and have been propounded many a time, in these columns, as well as by others. It requires courage, determination and selfless devotion to the task at hand, and the success can be ours.

These are not mere idle exhortations. History is full of success stories of nations who have pulled themselves up by their own boot-strings, and risen to the top of the economic world. Two nations - defeated and devastated in the Second World War (Germany and Japan) - are prime examples.

True, they were provided material aid, but their success owes to their indigenous labour and creative genius, not the greenbacks showered on them. Other nations too received huge amounts of aid and support, but their names do not stand anywhere in the same league as Germany and Japan. The so-called 'Asian Tigers' are another example of success born of grim toil and fortitude.

So for Pakistan, it is not a lonely journey. Others have set worthy examples before us. The lesson to be learnt is self-reliance and not depending on others to do our work for us. Once this grit and determination is exhibited in sincerity, Pakistanis can begin to see the light at the end of the tunnel.

We have to set our priorities right and move the way Chinese have done, or Malaysia, or others, for that matter. We must give up, once and for all, the idea that only the West can deliver. This is the century of the South and the East. Our destiny calls. Are we ready to answer?

Business Recorder [Pakistan's First Financial Daily]