Pakistan Economy - News & Updates - Archive

[Neo]

OMCs may soon get PDC worth Rs70bn ​

Thursday, June 26, 2008

ISLAMABAD: The government is arranging two tranches of Rs35 billion each for the payment of price differential claims (PDC) to oil marketing companies (OMCs) and refineries, said a government official on Wednesday.

The ministry of finance has conveyed to the ministry of petroleum that it will very soon release two tranches of Rs35 billion each to the oil marketing companies and refineries under the head of price differential claims, Ministry of Petroleum Secretary Zafar Mehmud told The News.

The PDC is a subsidy on POL products not passed on to consumers in fortnightly price revisions, but borne by the government to offset the effects of soaring petroleum prices. The PDC claims stood at Rs72 billion before the announcement of the federal budget earlier this month.

“The payment of PDC to the OMCs and refineries will be made either this week or in the first week of July,” Zafar said.

After clearing three tanches of PDC totalling Rs55 billion to the OMCs and refineries the remaining Rs17 billion would also be cleared at appropriate time, as the government is aware of the financial position of the OMCs and refineries, secretary petroleum said.

The government released Rs20 billion under the head of PDCs to the OMCs and refineries last week, Zafar further hoped that the federal government would clear all outstanding amounts of the said OMCs and refineries before the start of new fiscal year.

For the outgoing fiscal year of 2007-08, the federal government has allocated Rs15 billion for PDC (subsidies on POL) that reached to Rs175 billion because of all time high POL prices in the international market crossing the level of $135 per barrel. For the fiscal year 2008-09, the government has allocated Rs140 billion to shield its masses from affects of high POL prices.

The release of said PDC to Shell Pakistan Limited (SPL) will definitely help the company improve its operation, spokesman of the company Abid Ibrahim told The News.

Last week the government released Rs20 billion, he said adding that the company now has Rs11 billion outstanding against Government of Pakistan under the head of PDC and it is expecting release of Rs3 billion next week.

Currently, the government is giving a subsidy of Rs7.15 on petrol, Rs4.37 on HOBC, Rs44.11 on kerosene and Rs33.65 on light diesel oil and has capped the prices of the POL till June 30 to off set the affects of the soaring POL prices to its consumers.

The PPP led government has made commitment with international donors like the World Bank and International Monitory Fund (IMF) to cease the subsidies on POL products, electricity and gas before December 2008 to control its swelling budgetary deficit.

OMCs may soon get PDC worth Rs70bn

 

[Neo]

WB to provide $25m for Balochistan irrigation project ​

Thursday, June 26, 2008

ISLAMABAD: Pakistan has entered into an agreement with the World Bank for providing a credit of $25 million for the Balochistan Small Scale Irrigation Project.

The accord was signed by Economic Affairs Division Acting Secretary Junaid Iqbal on behalf of the Government of Pakistan, Balochistan Additional Chief Secretary Ahmed Bakhsh Lehri and World Bank’s Yousapha B Crookes here on Wednesday.

The government will repay the credit, being provided under the International Development Assistance (IDA), in 35 years including 10 years of grace period. The credit is interest-free, however service charges at the rate of 0.75 per cent per annum and commitment charges of 0.50 per cent on undisbursed balance will apply.

The Balochistan Small Scale Irrigation Project will support efforts by the provincial government to improve the management of scarce water resources in Pishin Lora Basin.

Project activities are designed to recognise the importance of direct participation of water users and other stakeholders. Key indicators include increased surface water availability and reduced groundwater depletion; increased water productivity through a combination of engineering, management and agricultural measures; and expanded local capacity and participation of farmers to implement similar schemes and formulate plans for sustainable water resources’ development and watershed management.

The project will focus on Pishin Lora Basin in the northern part of Balochistan and will have three components including partial restoration of water storage capacity in Bund Khushdil Khan, development of small-scale irrigation schemes in Pishin Lora Basin; and institutional strengthening and capacity-building of the Irrigation and Power Department (IPD), water management institutions and farmer and community organisations and further studies and preparation activities for the next phase.

WB to provide $25m for Balochistan irrigation project

 

[Neo]

Communications top FDI list, bag $1.28bn ​

Thursday, June 26, 2008

ISLAMABAD: During July-May 2007-08, the communication sector topped the list by attracting foreign direct investment (FDI) worth $1.28 billion. However, 17.8 per cent less than what it recorded in the corresponding period of the last fiscal year ($1.55 billion).

It is worth mentioning that total FDI to Pakistan during these 11 months have dipped by 14.1 per cent year-on-year to $3.88 billion and portfolio investment by 96.5 per cent to $62.2 million, as compared to the corresponding period of the last fiscal year 2006-07. In corresponding period of the fiscal year 2006-07, it stood at $4.52 billion and portfolio investment at $1.76 billion.

Break-up of investment by sectors further reveal that under the communication head, the telecommunication sector attracted $1.13 billion, information technology $146 million and postal and courier services inflows were worth $4.9 million.

The notable encouraging point in IT sector was that during the period, software and hardware development fetched $12.4 million and $6.4 million respectively, which was far more than the corresponding period last fiscal year, when each fetched $4.3 million. Financial Business is next with total FDI of $883.3 million compared to $898.7 million, showing a decline of 1.7 per cent.

Oil and gas exploration sector during July-May 2007-08 also attracted $550 million, which was 14 per cent higher than $482.7 million in corresponding period last fiscal. Trade sector attracted $150.7 million against $149.8 million.

It is to be noted that the inflow of direct investment in cement sector compared to corresponding period last year was very high. During the period under review it attracted $99 million against only $18.1 million last fiscal, depicting a growth of 447 per cent.

FDI inflow in transport equipments (automobiles) during 11 months of the outgoing fiscal stood at $88.4 million up 91.3 per cent over $46.2 million recorded in the corresponding period of the last fiscal. In construction sector, inflow declined by 45 per cent to $81.7 million against $148.2 million in last fiscal.

Transport sector also fetched 185 per cent more investment to $71 million against $25 million in the previous year.

The petroleum refining sector attracted $68.5 million, Petro chemical $27 million and mining and quarrying absorbed $32.7 million foreign investment during the period under review.

Power sector (thermal and hydel) has also received total FDI of $66.3 million, however 60.6 per cent less than in the same period of the last fiscal ($168 million).

It is pertinent to note that in thermal power sector, inflows went down by 64.7 per cent to $58.7 million from $166.1 million, while FDI in hydel sector went up by 299 per cent to $7.6 million from $1.9 million recorded in corresponding period of the last fiscal.

FDI inflow during the period under review went up by 110 per cent to $77.8 million in chemical sector, 132 per cent in foods ($39.2 million), food packing 535 per cent ($6.4 million), pharmaceutical and OTC products 30 per cent ($43 million), metal products 116 per cent ($14.7 million), machinery other than electrical 48 per cent ($5.6 million) and inflows in electronics went up by 59 per cent to $26.5 million. FDI inflow in electrical machinery during these 11 months stood at $6.4 million.

It is also worth mentioning that FDI inflow in tobacco and cigarettes down by 98 per cent to $$8.4 million from $389 million. Sugar sector also depicted a decline of 42.4 per cent to $9.3 million and investment in storage facilities are also down by 97 per cent to 0.57 million from $18.3 million. Tourism sector also fetched 66 per cent less FDI during the period under review by receiving $6.3 million against $18.6 million.

Experts believe that it was the political turbulence and prevailing judicial crises that brought foreign investment in the country to earth.

Communications top FDI list, bag $1.28bn

 

[Neo]

IT drive inaugurated to promote SMEs ​

Thursday, June 26, 2008

KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) in collaboration with Intel Pakistan Corporation, has launched an information technology drive showcasing the importance of technology, PC and internet utilisation.

Programme Manager for Intel Pakistan, Uzair Khurshid inaugurated this drive which is aimed towards Small and Medium Business (SMB) segment. President of KCCI, Shamim Ahmad Shamsi said that information technology has now become a key ingredient for growth of any business of any size in the global economy.

He further added that productivity is a mandatory factor for the growth of Small and Medium Enterprise (SMEs). Moreover, update of IT resources would give leverage to these industries to compete better at the international level and keep them apace with the technology, he added.

Shamsi also said “businesses today face a wide variety of challenges and one of KCCI’s aims is to facilitate the growth of our members’ businesses, their profitability, reduce business and manufacturing process complexity, and gain better business by staying competitive.”

Business/Retail Marketing Manager, Intel Pakistan Corporation, Asma Aziz said that “The Small and Medium Business sector is the backbone of our economy in Pakistan and we are proud to facilitate their digital empowerment, which would not only boost their productivity and efficiency, but also impact the economy on a macro level.”

She added that Intel has been working closely with the SMB segment and various chamber bodies as well as Small Medium Enterprise Development Authority (SMEDA) from a technology advisor standpoint.

It has conducted various technology awareness seminars and workshops, and is also aligning the software community to bring a complete solution to businesses as per their needs.

This two day workshop will be attended by members of the KCCI as well as other business entrepreneurs from almost all leading organisations.

The event is set to display latest hardware technology solutions, software solutions providers and business management softwares. SMEDA is also participating in this event by offering their help desk services to facilitate small and medium businesses.

IT drive inaugurated to promote SMEs

 

[Neo]

Pak-Qatar Takaful introduces savings products ​

Thursday, June 26, 2008

ISLAMABAD: Pak-Qatar Family Takaful Ltd, with Rs525 million paid-up capital, has launched its first individual family takaful savings products in the country, starting with their Share & Care Savings Takaful and ABC Education Takaful plans. “By saving just Rs1,250 per month one can become the member of Pak-Qatar Waqf pool and avail various benefits,” announced Pak-Qatar Family Takaful CEO P Ahmed at a press conference here on Tuesday.

Ahmed said Share & Care Savings Takaful is a plan for families who would like to save smaller amounts of money and accumulate them into large investments for particular future needs like buying a house or providing financial support in old age.

The plan also offers the financial protection to the family, if its bread-winner is unable to provide in the future due to unfortunate events. He elaborated the ABC Education Takaful Plan was particularly designed for families who want to ensure the continuity of their child’s ongoing education even if the sponsor parent wouldn’t be around. It helps to multiply savings for the ever-increasing educational expenses in future. On completion of the membership term the investment value of the plan will be paid either as a lump-sum or in regular installments to be utilised for the payment of college/university fee.

Hamad bin Ali Al Hinzab, Ambassador of Qatar in Pakistan, said Pak-Qatar is the result of first 100 per cent direct investment initiative by the state of Qatar in Pakistan.

He said the country offers tremendous returns on investment and Qatar is keenly looking for further investment opportunities in different sectors of economy.

Pak-Qatar Takaful introduces savings products

 

[Neo]

300 items to boost trade with Iran identified​

LAHORE, June 25: About 300 items have been identified for trade between Pakistan and Iran which would help increase volume of bilateral trade by one billion dollars.

Speaking to businessmen and industrialists at the Lahore Chamber of Commerce and Industry on Wednesday, Iraj Hassan Poar, President, Commerce Organisation of Sistan and Iranian Baluchistan province, said that Pakistan and Iran needed to have the highest level of bilateral trade as both the nations wanted to face the challenges of globalisation.

“Pakistani businessmen should join hands with their Iranian counterparts for getting both the countries a respectable place in the highly globalised market,” he said.

He said Iran was in a position to transit Pakistani goods to all the neighbouring countries.

“Pakistani businessmen should avail the opportunity for mutual benefit,” he said, adding, lack of information was coming in the way of expansion of bilateral trade between Pakistan and Iran.

“The problem can be solved by frequent exchange of trade delegations and holding joint trade exhibitions.”

He asked the LCCI president to arrange a trade delegation to Iran so that Pakistani businessmen could have an assessment of business opportunities there.

Zahidan Chamber of Commerce and Industry and Mines President Abdul Hakim Reigi said that Pakistan could import homeopathic medicines, dates and a number of other products from Iran.

He said Iran wanted to import quality food products from Pakistan. He said that Pakistan could establish units for producing value-added dates in collaboration with Iran for re-export.

He said Pakistan government should allow concessions on export of rice, potato and kinno to Iran.

He also invited the LCCI to hold single-country exhibition of Pakistani products in Zahidan.

LCCI Vice President Shafqat Saeed Piracha said there was a need to raise the level of trade between the two countries to one billion dollars.

The trade was confined to a limited number of products. Pakistan’s exports to Iran mainly comprise rice, wheat, cotton, leather products, textile yarn, etc., and imports comprised petroleum and petroleum products, spices, tea, pistachio nuts, woollen carpets, fruits and vegetables.

He said lack of information about business opportunities was the major bottleneck in promotion of trade between the two countries.

The issue can be taken care of through the active engagement of the chambers of both the countries. The chambers could act as resource base for information on trade and investment opportunities.

300 items to boost trade with Iran identified -DAWN - Business; June 26, 2008

 

[Neo]

Cabinet proposes a revisit of Gwadar Port contract ​

ISLAMABAD (June 26 2008): The federal cabinet has proposed a revisit of the contract signed between a consortium of Singapore Port Authority (SPA)/AKD Securities and Shaukat Aziz-led government on Gwadar Port, well-placed sources told Business Recorder.

The cabinet had considered 'Gwadar Port Authority's revised bill for carving a new corporate structure of the port' in its meeting on June 4 but did not clear the bill due to several reservations. "The GPA affairs as well as the contract signed with the foreign operator called for a thorough review in consultation with the Balochistan government," sources quoted Prime Minister Syed Yousuf Raza Gilani as saying.

The cabinet was informed that the previous cabinet, on 27 June, 2007, had approved the draft bill for the establishment of GPA, subject to certain conditions including provisions relating to appointment of chairman and members of the board and their term of office, etc.

The Master Plan and business strategy of Gwadar Port envisaged that the chairman and members of the board shall be non-executive. The responsibility for management of all affairs of the authority would rest with the Chief Executive Officer who would act as the co-opted board member and would report to the non-executive chairman and the board on all matters including those delegated by him to his subordinate officers.

The Ministry of Law and Justice has vetted the draft bill titled 'Gwadar Port Authority Act, 2008' prepared by the Ministry of Ports and Shipping. However, the cabinet observed that the draft bill is flawed and contains self-contradictory provisions. Moreover, the proposed corporate structure was not in line with best international practices.

The cabinet after detailed discussion over the controversial draft bill has decided that it should be first examined by a committee comprising Ministers of Port and Shipping, Finance, Law and the Deputy Chairman of Planning Commission. It has also been decided that one Minister from Balochistan should also be co-opted.

It is not yet clear whether the committee has submitted its report to the Prime Minister for consideration. According to sources, phase-II of the project will be implemented on BOO (Build-Own-Operate) or BOT (Built-Own-Transfer) basis. Phase-II envisages construction of 10 more berths eastward of 4,200m long coast in phases under private sector as and when the utilisation on the existing berths under Phase-I reaches maximisation (ie 70 percent).

The port would be provided road and rail link with the national network. Port of Singapore Authority International (PSAI) has been assigned the job of port development under Phase-II in the concession agreement for 40 years. Gwadar Port is expected to contribute $42.2 billion, in terms of investment, revenues and income received from its entire operations to the exchequer, over a period of 40 years.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

$2 billion US aid to Pakistan questioned ​

WASHINGTON (June 26 2008): The United States has paid more than $5 billion to reimburse Pakistan for counter-terrorism expenses that have often been exaggerated, if not fabricated, according to a government audit released on Tuesday that blasts Pentagon for poor management of the programme.

The report concluded Pentagon could not properly account for as much as $2 billion in payments to Pakistan over three-year period from 2004 to 2007. A report in Los Angeles Times on Wednesday said auditors uncovered array of questionable costs, including $45 million for roads, bunkers; $200 million for operation of air defence systems even though al Qaeda has no known aircraft; overcharges for meals, vehicles used by Pakistani troops.

The Government Accountability Office (GAO) says the defence department had routinely covered costs without verifying that they "were valid, actually incurred, or correctly calculated." Pentagon paid about $5.6 billion to Pakistan in counter-terrorism reimbursement funds in nearly seven years since September 11 terrorist attacks, by far largest sum paid as part of the programme to a counter-terrorism ally.

The audit acknowledges Pentagon recently taken steps to improve its scrutiny of expense reports submitted by Pakistan. "Up until that point in time we would say that there was not sufficient oversight," said Charles Michael Johnson Jr., director of counter-terrorism issues at GAO and principal author of report. Even now, he said, "We still point out concerns and areas where we think there should be further enhancements" of Pentagon's oversight of the programme.

He pointed to Pentagon's practice of reimbursing Pakistan without taking into account favourable fluctuations in exchange rate. It is latest of studies to criticise Bush administration's management of Coalition Support Funds programme, created in aftermath of September 11 attacks and doled out billions of dollars to 27 nations.

The report was focus of hearing Tuesday by House sub-committee on National Security & Foreign Affairs. "The more I learn about Coalition Support Funds to Pakistan, more I am troubled," said Rep. John F. Tierney (D-Mass.), chairman of sub-committee. He questioned whether the programme should be discontinued or overhauled, saying it has "failed to beat back Taliban threat to our troops in Afghanistan or threat of al Qaeda."

It says the defence department paid Islamabad $200 million for radar expenses from January 2004 to February 2007, for example, even though US military officials in Pakistan urged Pentagon to reject charges because "terrorists in Fata did not have air attack capability." Fata is Federally Administered Tribal Areas along border with Afghanistan.

Pentagon reimbursed Pakistan $45 million for road and bunker construction. But accompanying documentation "did not provide sufficient support that all claimed costs were based on actual activity or expenses," GAO report said. Pentagon subsequently declined to cover similar charges until Pakistan provides co-ordinates of roads and bunkers it claims to have built. So far, "Pakistan has not provided this additional information," report said.

The Government Accountability Office says during one period, the defence department was paying the Pakistan Navy more than $3.7 million per year in repair, maintenance charges on "a fleet of fewer than 20 passenger vehicles" that was never used in combat. The charges amounted to more than $19,000 per month for each vehicle. In response to such criticism, Pentagon has given US military officials in Pakistan a larger role in scrutinising that country's counter-terrorism expenses had begun rejecting more requests.

Bobby Wilkes, deputy assistant secretary of Defence for Central Asia, acknowledged breakdowns in oversight but defended programme, saying Pakistan could not afford to deploy and maintain 100,000 troops and paramilitary forces in tribal areas without reimbursements it receives from United States. The support funds are "critical to our eventual success in Afghanistan and war on terror," Wilkes said.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Country to miss textile exports target ​

KARACHI (June 26 2008): The country will miss the current year's textile export target of $12 billion due to power shortage, increase in cost of production, political instability and stiff competition in world market. Textile exporters have shown poor performance during the current fiscal year, despite getting huge subsidies on account of research and development (R&D) support from the government since 2005.

Industry sources said that unannounced power load shedding, besides political battle, had badly hurt the industrial activities in the country, while due to poor law and order situation foreign importers refused to visit Pakistan. These have been chief reasons of decline in textile exports.

They said that killing of Benazir Bhutto and riots following it presented a negative picture of Pakistan and once again country's image on international front has been damaged. Official statistics show that textile exports declined by 2.5 percent during eleven months of current fiscal year against 6 percent growth in corresponding period of last fiscal year.

Keeping in view the pace of current textile exports, experts reckon that the country would fall short of the textile exports target this year despite getting billions of rupees as R&D subsidy. The government has been paying 3 percent R&D support on fabrics, 5 percent on bedwear and knitwear and 6 percent on garments.

From May 2005 to March 2008 the government has paid about s 31 billion to textile exporters to continue R&D support. Textile exports stood at $9.59 billion in eleven months of current fiscal year against the annual target of $12.21 billion. This is about $246 million less than $9.83 billion of same period of last fiscal year. Industry sources believe that this year totl textile exports would not be more then $10.5 billion against the target of $12.21 billion.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Iranians identify 300 items to boost trade by $1 billion ​

LAHORE (June 26 2008): The Commerce Organisation, Sistan of the Iranian province Balochistan, has identified a list of 300 tradable items between Pakistan and Iran to enhance trade volume between the two countries by one billion dollars. Commerce Organisation President Iraj Hassan Poor stated this during a meeting with the office-bearers of the Lahore Chamber of Commerce and Industry (LCCI) here on Wednesday.

While stressing the need for expediting work on the list of tradable items, he said Iran was in a position to transit Pakistani goods to all the neighbouring countries and the Pakistani businessmen should avail the opportunity for the mutual benefit of the people in both the brotherly Islamic countries.

Iraj Hassan said Pakistan and Iran need to have the highest level of bilateral business if both the nations want to face the fast emerging global challenges and it is high time that Pakistani business community should join hands with their Iranian counterparts as this would help both the countries get a respectable place in the global market which is highly competitive at the moment.

He said the lack of information was also coming in the way of bilateral trade between Pakistan and Iran and this goal could be achieved with frequent exchange of trade delegation and holding of joint trade exhibitions. He urged the Lahore Chamber of Commerce and Industry (LCCI) to arrange a trade delegation to Iran so that Pakistani businessmen could have an assessment of the business opportunities existing in Iran.

Speaking at a meeting, Zahidan Chamber of Commerce and Industry and Mines (ZCCI&M) President Abdul Hakim Reigi said that Pakistan could import homeopathic medicines, dates and a number of other products from Iran.

Regarding quality of products, he said that Iran wanted to import high quality food products from Pakistan. About joint venture, he said that Pakistan could establish units for producing value-added dates in collaboration with Iran for re-exporting to other countries.

He urged the government of Pakistan to allow some concession on export of rice, potato and kinno from Pakistan to Iran. He invited the LCCI to hold single country exhibition of Pak products in Zahidan.

Speaking on the occasion, LCCI Vice-President Shafqat Saeed Piracha said that at the moment the trade between the two countries was confined to a limited number of products. Pakistan's exports to Iran mainly comprise rice, wheat, cotton, leather products, textile, yarn, etc and imports from Iran consist of petroleum and petroleum products, spices, tea, pistachio nuts, woolen carpets, fruits and vegetables.

He said that food and fruit processing, dairy and poultry products, petroleum refinery, oil and gas exploration, infrastructure, transport vehicles, electric and non-electric appliances, cement, chemicals, information technology are possible areas for joint ventures between the two countries.

Lack of timely information on trade and business opportunities in both the countries is one of the major bottlenecks in trade enhancement and the frequent which can be removed through frequent and active engagements between the two-side chambers, he said, adding the chambers of two countries can be a resource-base for providing information on trade and investment opportunities. Shafqat Saeed Piracha, former LCCI president Mohsin Raza Bukhari, former LCCI vice-president Shahzad Ali Malik were also present on the occasion.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

$300 million cash subsidy a year: PTA enjoying unprecedented support of Finance for four years ​

LAHORE (June 26 2008): The Ministry of Finance, for the fourth consecutive year, is all set to pay an unprecedented cash subsidy of 300 million dollars to Pakistan PTA Limited, the producer of purified terrapthallic acid (PTA). PTA is a major ingredient for the production of polyester staple fibre, polyester filament yarn and pet bottle chip.

Textile sources told Business Recorder here on Wednesday that the government would further pay 51 million dollars in the 2008-09 fiscal year to the Pakistan PTA Limited as subsidy. It may be mentioned that the PTA was a company previously owned by ICI PLC of England and now owned by Akzo Nobel of Holland.

The sources said during the last three years, the excuse was that the government of Pakistan had provided the company with a sovereign guarantee of 15 percent protection for a period of 10 years since its inception. During the last three years, the sources claimed that the government of Pakistan ensured the payment of 15 percent of its sales price without any ceiling. Thus, hundreds of million dollars were paid as a direct subsidy to the organisation.

The so-called sovereign guarantee was extended to the company till June 30, 2008, but the Ministry of Finance has again provided the company with a protection of 7.5 percent at current rate of 1,200 dollars per ton of PPTA production 500,000 tons per annum (PTA) tantamount to 45 million dollars, the sources said. With the price of crude oil envisaged to increase, therefore, the price of PTA was deemed to rise further, thus increasing the amount of subsidy, they said.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'IT has become vital to business growth' ​

KARACHI (June 26 2008): The Karachi Chamber of Commerce and Industry (KCCI) President, Shamim Ahmed Shamsi has said that information technology has now become a key ingredient for growth of any business of any size in the global economy, says a press release.

While inaugurating an SME information technology awareness drive workshop, organised by Intel Pakistan Corporation in collaboration with KCCI, he said that productivity is a mandatory factor for the growth of SMEs. Moreover, updating of IT resource would give leverage to these industries to compete better at international level and keep them with the pace of technology.

He said businesses today, face a variety of challenges and the KCCI's aim is to facilitate the growth of its member businesses and reduce their business and manufacturing process complexity. Business Retail Marketing Manager, Intel Pakistan Corporation, Asma Aziz said that "the small and medium business sector is the backbone of our economy and we are to facilitate their digital empowerment, which would not only boost their productivity and efficiency but also impact the economy on a macro level."-PR

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Improvement of Balochistan water resources: $25 million IDA credit agreement inked ​

ISLAMABAD (June 26 2008): To efficiently manage scarce water resources in Balochistan, the government here on Wednesday inked an agreement with the World Bank for provision of International Development Association (IDA) credit of SDR 15.8 million ($25 million). The Balochistan small scale irrigation project will mainly focus on Pishin Lora Basin in the northern parts of the province.

It will encompass three components to irrigate the water-starved land, which includes: (1) partial restoration of water storage capacity in the Bund Khushdil Khan (BKK); (2) development of small scale irrigation schemes in the Pishin Lora Basin; and (3) institutional strengthening and capacity building of the Irrigation and Power Department (IPD), water management institutions, and farmers and community organisations and further studies and preparation activities for the next phase.

Improved watershed and rangeland management and on-farm water management, including introduction of high efficiency irrigation systems, will be integral components of the project. Balochistan Small Scale Irrigation Project (BSSIP) will support efforts to improve management of the scarce water resources in the Pishin Lora Basin.

Project activities are designed to recognise the importance of direct participation of water users and other stakeholders. Key indicators include: (i) increased surface water availability and reduced groundwater depletion; (ii) increased water productivity through a combination of engineering, management, and agricultural measures; and (iii) expanded local capacity and participation of farmers to implement similar schemes and formulate plans for sustainable water resources development and watershed management.

The agreement was signed by Junaid Iqbal, Acting Secretary, Economic Affairs Division, on behalf of the Government of Pakistan, Ahmed Bakhsh Lehri, Additional Chief Secretary, Government of Balochistan, on behalf of Government of Balochistan, and Yousapha B Crookes on behalf of the World Bank.

The Government of Pakistan will repay the credit in 35 years including 10 years of grace period. The credit is interest-free. However, service charges @ 0.75 percent per annum, and commitment charges of 0.5 percent per annum on undisbursed balance will apply.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan Steel achieves record sale ​

KARACHI (June 26 2008): Pakistan Steel achieved a record sale of Rs 39 billion during the fiscal 2007-08. This was announced by a spokesman of Pakistan Steel here on Wednesday. He said the previous record of the sale of products was set with Rs 36 billion in the fiscal 2006-07 and the Mills had also earned a profit to the tune of Rs 4.2 billion.

Now with just five days before the conclusion of the fiscal 2007-08, Pakistan Steel has broken the previous years' record by achieving a sale of its products worth Rs 39 billion. The spokesman also pointed out that there has been no increase in rate of products of Pakistan Steel for the past two months.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

US plans to triple non-security aid to Pakistan in new strategy​

by P. Parameswaran
Thu Jun 26, 2008

WASHINGTON (AFP) - The United States is considering a new aid strategy for Pakistan that will triple unconditional non-security aid to 1.5 billion dollars annually but tie security funding to counterrorism performance, lawmakers said.

In coming weeks, bipartisan legislation will be introduced in the US Senate laying the foundation for the new approach, senior Democratic Senator Joseph Biden said Wednesday.

Biden, who chaired a hearing of the Senate Foreign Relations Committee on the new strategy, proposed that the central elements of the new plan include tripling non-security aid to 1.5 billion dollars annually over a 10-year period.

"A significant increase in non-security aid, guaranteed for a long period, would help persuade the Pakistani populace that America is not a fair-weather friend but an all-weather friend; it would also help persuade Pakistan's leaders that America is a reliable ally," he said.

But Biden, in a controversial move, also wanted US security aid -- around one billion dollars annually at present -- to be tied to results.

This, he said, would "push the Pakistani military to finally crush" the Al-Qaeda and Taliban militant groups believed based along the Pakistan-Afghanistan border.

"It's not clear we're getting our money's worth. We should be willing to spend more if we get better returns -- and less if we don't," he said.

Biden said that the US-Pakistan relationship was in "desperate need of a serious overhaul" and that the status quo is "unsustainable."

The United States provided Pakistan more than 10.5 billion dollars for military, economic, and development activities in the 2002-2007 period.

Ranking Republican Senator Richard Lugar said Biden's proposal for dramatic adjustments to US foreign assistance to Pakistan had given the committee "an important model for discussion.

"We should carefully reconsider both the amounts that we are providing and the goals we are hoping to achieve in Pakistan," Lugar said.

President George W. Bush's administration has given general support to the plan.

"While we do not agree on every point in the current version of the proposed legislation, we welcome this initiative and feel strongly that a new, bipartisan commitment to partnership with Pakistan is crucial," said Assistant Secretary of State Richard Boucher.

"We look forward to working closely with this committee to see this initiative through," he said.

The elements of Biden's plan "are vital but they may be reconfigured in the final legislation," one congressional aide said.

The Pentagon cautioned that any strategy change in military aid should not come at the expense of Pakistan's legitimate defense needs, opposing any "conditional language" on security assistance.

"Doing so undermines the trust relationship with Pakistan at a time when it is most critical," cautioned Mitchell Shivers, the principal deputy assistant secretary of defense.

But Biden said the performance of the Pakistan military has been mixed.

"We've caught more terrorists in Pakistan than in any other country but Pakistan remains the central base of Al-Qaeda operations."

The Government Accountability Office (GAO), an independent US government watchdog, had called for a coherent plan to stem any terrorist threat coming from Pakistan.

It particularly referred to the vast, impoverished, mountainous and unpoliced Federally Administered Tribal Areas (FATA), seen as a key sanctuary for top terrorists who masterminded the Sept 11, 2001 attacks.

Wendy Chamberlin, president of the Washington-based Middle East Institute, said any legislation tying security aid to performance would not be easy.

"Historically, Pakistan viewed conditioned aid as a colonial practice that belittles the recipient," she said.

US plans to triple non-security aid to Pakistan in new strategy - Yahoo! News