Pakistan Economy - News & Updates - Archive

[Neo]

Rs3,061bn required for MDGs in education, health & environment ​

Wednesday, August 27, 2008

ISLAMABAD: Pakistan requires Rs3,061 billion to achieve Millennium Development Goals (MDGs) related targets in education, health, environment, clean drinking water and sanitation during the next seven years till 2015, The News has learnt.

None of the governments have ever done this exercise to ascertain the exact financing requirements for achieving MDGs. Now this has been done by UN consultants to give the exact cost of achieving MDG targets envisaged by the UNO and agreed by Pakistan for improving basic necessities of life till 2015.

The much-awaited crucial document, Poverty Reduction and Strategy Paper (PRSP-II), on the basis of which Islamabad would get billions of dollars over the next three to five years would incorporate the MDG cost in its fold.

The MDGs, agreed by Pakistan under the aegis of UNO for scaling up provision of basic necessities of life, can only be achieved if the government spends a major chunk of its resources for achieving the targets in education, health and environment over the next seven years (2009-2015).

The total cost of Millennium Development Goals in sectors like education, health and environment would come to Rs3,061 billion till 2015, out of which the government’s financing available to education would be Rs860 billion, health Rs850 billion, environment Rs550 billion and clean drinking water and sanitation Rs130 billion.

“Total financing gap stands at Rs844 billion as the education sector’s requirement is Rs350 billion, health Rs310 billion, drinking water and sanitation Rs43 billion and environment Rs141 billion,” the cost estimated by the government and available with The News showed. Islamabad would have to approach multilateral and bilateral creditors in order to meet its financing requirements.

The total cost for achieving MDGs targets in education stood at Rs1210 billion, out of which Rs953 billion would be required for universal primary education, Rs209bn for promoting literacy and Rs48bn for early childhood education over the next seven years.

The cost for achieving health-related MDGs would require Rs1160 billion over the next seven years, out of which Rs5bn would be required for nutrition, Rs48bn for population welfare and Rs1107bn for mother and child healthcare.

The water and sanitation sector would require Rs173 billion, out of which Rs130bn would be for provision of clean drinking water and Rs43 billion for sanitation.

The cost of achieving environment related MDGs would be Rs691 billion, out of which Rs650 billion would be required for housing, Rs18bn for green environment and Rs23bn for brown environment in the next seven years.

According to an analysis done by former chief economist of Planning Commission, Dr Pervez Tahir, which he tabled during the recently held workshop titled “Decentralisation - A Vehicle for Achieving MDGs”, a copy of which is available with The News, states that out of a total of 34 indicators for achieving MDG targets, Pakistan is lagging behind on 25 indicators and is on track on six indicators, while it is ahead on three indicators.

Out of the three indicators related to eradicating extreme poverty and hunger, Pakistan is lagging behind on all of them. There are three indicators related to universal primary education, Pakistan is lagging behind on two indicators, while it is on track related to one indicator.

To promote gender equality and women empowerment, there are four indicators out of which Pakistan is lagging behind on one and is on track on two indicators, while it is ahead on one indicator.

There are six indicators on reducing child mortality and Pakistan is lagging behind on three indicators, is on track on two indicators, while ahead on one indicator. To improve maternal health, there are five indicators for achieving MDGs and Pakistan is lagging behind on all of them.

There are five indicators on combating HIV/AIDS, malaria and other diseases and Pakistan is lagging behind on all of them. To ensure environment sustainability, there are eight indicators for achieving MDGs, Pakistan is lagging behind on six indicators, is on track on one indicator while it is ahead on one indicator.

Public expenditure on social sector and food assistance as percentage of GDP are traditionally very nominal in Pakistan and the last eight years of Musharraf-Aziz regime worsened the situation.

The public expenditure on education as percentage of GDP stood at 1.34 per cent in 2000-2001, which went up to only 1.86 per cent by 2006-07. The public expenditures on health were 0.42 per cent of the GDP in fiscal year 2000-01 which increased to 0.61 per cent by 2006-07. On water supply and sanitation, public expenditures stood at 0.11 per cent of the GDP which increased to 0.19 per cent by 2006-07.

However, public expenditure on food subsidies and support declined during the Musharraf-Aziz rule as it stood at 0.25 per cent of the GDP by 2000-01, which declined to 0.10 per cent by 2006-07.

 

[Neo]

US help sought in agriculture ​

Wednesday, August 27, 2008

ISLAMABAD: Federal Minister for Food, Agriculture and Livestock, Nazar Muhammad Gondal, has said that there is a great need to modernise agriculture with the effective use of science and technology, and Pakistan greatly needs help and cooperation from the US in this regard.

Gondal stated this while talking to the Adviser to US Secretary of State on Science & Technology Dr Nina Fedoroff. Food shortage is an international problem and it needs cooperation and collaboration, said the minister, adding that in spite of self-sufficiency in food items Pakistan is facing a shortage because of smuggling to the neighbouring food-deficient countries.

Gondal said that the government is working on the initiative of “Green to Gene Revolution” and needs scientific and technological support from the US especially in bio-technology, so that there is an increase in agricultural productivity and improvement in seed technology.

The minister said, “We want technology transfer from the US through more scholarships to students and on-job training to our technical experts in the field of agriculture.”

 

[Neo]

Tough steps unlikely to kick-start economy ​

Wednesday, August 27, 2008

LAHORE: The PPP-led government must be repenting the mistake of neglecting the economy for over four months as it has now reached a stage where even the harshest measures would not be enough to give it a kick-start.

What has surprised most economists is that the present regime has penalised the electorate by increasing petrol, gas and electricity rates without having any proper economic roadmap. The rise in prices of these utilities was essential as their cost has surged but the electorate expects an improvement in economy which would offset the impact of this additional burden coupled with high food prices.

During the past four months, foreign exchange reserves have dipped to the lowest level in four years. The rupee is on a free fall and the capital market’s performance reflects the apathy of regulators. It looks that the government has lost all financial controls. On the other side, banks are in the driving seat as they continue to offer marginal returns to depositors while charging over 16 per cent mark-up from borrowers. Hoarders of grains and vegetables are minting more money than they ever made in the past.

Even the decline in rupee’s value has not put a brake on imports which continue to grow at a higher pace than exports. It is true that the economic rot started much before the transfer of power to the present regime. However, what disturbs most economic analysts is that the downturn instead of slowing down has accelerated after the change of government.

Though the last speech by former president Musharraf was a bundle of lies but he had a point when he correctly stated that thermal power generation has gone down by 4,000 megawatts compared to what Water and Power Development Authority was generating during the same period last year. This is the main reason for the high loadshedding facing the country.

Many power generation experts point out that perhaps the government is deliberately keeping production low till another hike in electricity rates.

The trade and industry is worried as credentials of some of the ruling party members are dubious. Businessmen have doubts about the transparency of economic policies and PPP leaders would have to take up the challenge of bringing fairness and transparency in policies.

Economists point out that the economic scenario had drastically changed in the past decade. They say the globalisation process has reached all corners of the world and the slightest deviation from merit and transparency would have a devastating impact on the economies. Besides transparency, they suggest, the government would have to take prudent and quick decisions on economic policy.

An economist said postponing the decision on research and development support for textiles for instance had hurt exports. Similarly, the decision to apprehend hoarders, smugglers and tax under-filers could not be delayed any further as they were eating away the documented sector of the economy.

 

[Neo]

Countrywide deficit surges to 4,500MW​

LAHORE, Aug 26: The severe power shortage in the country surged to over 4,500 megawatts when saboteurs blew up gas pipelines, causing suspension of supplies from Zamzama and Pir Koh to some power plants and forcing Pakistan Electric Power Company (Pepco) to undertake ‘unannounced’ loadshedding.

According to Pepco officials, the crisis hit the 1,326MW Muzaffargarh Power House, which on Tuesday was producing only 550MW — a loss of 776MW. Similarly, the 1,250MW Kot Addu Power Company was producing only 800MW, with a net loss of 450MW. The Faisalabad Gas Turbine Power Station, designed to produce 170MW, remained shut, and so was the 200MW rental power unit.

The company was getting only 50 per cent of its share of gas, according to Pepco’s director-general Tahir Basharat Cheema. “Pir Koh and Zamzama gas fields are offline, plunging the company in a real crunch.”

He said the situation would improve in the first week of September after Mangla Dam got filled and the run of the river increased.

Currently, Mangla Dam is generating only 350MW compared to 1,050MW produced last year. The Indus River System Authority (Irsa) was releasing only 10,000 cusecs, saving almost the same amount of water. The lake level is three feet below its optimum level of 1,202 feet.

On Tuesday, hydel generation remained around 5,600MW against the maximum possible generation of 6,600MW.

The extent of the crisis could be gauged from the fact that the company did not have enough fuel to restart even a unit of the Muzaffargarh Power House, another company official said.

“The situation at the company’s own thermal units is also messy. On Tuesday, all of them contributed only 2,000MW against 2,800MW when the oil supply situation was better.”

According to him, the company was facing a crisis in all three sources of generation — oil, water and gas. “It does not have sufficient oil because of the price factor and liquidity crunch. It does not have enough gas as a result of sabotage and because water releases are below normal owing to preference for irrigation.”

According to a Pepco press release, the pipeline supplying gas to the Sui Northern Gas Pipelines Limited (SNGPL) from the Zamzama gas field was blown up by saboteurs a couple of days ago, affecting gas supply to the Muzaffargarh Power House, Kot Addu Power Company and Faisalabad Gas Turbine Power Station.

There was an additional shortfall of about 1,000MW in the national grid because power houses were running below their capacity due to reduced gas supply.

“Under these circumstances, Pepco has to resort to forced loadsheding in a few areas. Resultantly, consumers have been facing loadsheding of relatively long hours than normal load management schedules.

“Necessary measures are being taken … to rectify the problem. It is expected that the situation will normalise by Wednesday.”

 

[Neo]

US firm to invest $10bn in housing​

ISLAMABAD, Aug 26: A US-based firm will invest $10 billion in Prime Minister’s Housing Programme, a mega project to construct one million residential units annually in the country.

The Ministry of Housing and Works and the International Oil Company of USA here on Tuesday signed a memorandum of understanding (MoU) in this regard.

Secretary Housing Sami ul Haq Khilji and Country President of IOC Fazal-e-Rahim signed the MoU. The ceremony was also attended by Minister for Housing and Works Rehmatullah Kakar, Managing Director Pakistan Housing Authority Raja Mohammad Abbas, Joint Secretary Ali Abid, chief engineering adviser and senior officials of the ministry.

“The US firm will provide financial assistance to the government on turnkey basis and after construction, a specific quantity of housing units would be given to the US firm and it will sell them on its own terms and conditions,” secretary housing told Dawn.

He said final agreement between the two sides would be signed after the release of half of the promised amount ($5 billion) by the US firm.

The housing minister had told National Assembly recently that the government was in the process of making deals with the firms from Malaysia, Spain, United States and a local company.

Regarding the prime minister’s plan to build one million housing units, the minister informed the House that survey in this regard had been completed and evaluation was in progress, adding that the House would be informed about the progress shortly.

Under the MoU, the US company had agreed to invest $5 billion initially and later on the remaining $5 billion would be released for the PM’s programme.

Speaking on the occasion, the housing minister said that the government would encourage and facilitate the foreign investors in the upcoming mega housing projects.

The government, he said, had chalked out an ambitious plan to construct one million houses annually for the poor, needy and shelterless and government servants under the PM’s programme being implemented all over the country.

“Participation of foreign companies in Pakistan’s housing projects would not only benefit the respective countries to share their experiences in the construction sector but also generate employment opportunities to a great extent,” the minister said.

 

[Neo]

Small dams, agriculture schemes on ADB agenda​

* ADB delegation’s presentation to PC likely on September 2​

ISLAMABAD: The Asian Development Bank (ADB) on Tuesday expressed willingness to invest more in the construction of small dams in the country instead of big dams.

A meeting held in the Economic Affairs Division (EAD), ADB officials and representatives of four provinces, relevant ministries, the Planning Commission and the Finance Division, discussed in detail the draft of the Country Partnership Strategy (CPS).

During the meeting, ADB officials sought comments from the concerned ministries/divisions experts over the CPS draft for its finalisation.

Government officials said ADB representatives expressed willingness to provide financial assistance for construction of small dams and most of the ADB assistance programmes related to the development of agriculture sector that would greatly help the government to resolve the food security problem.

The CPS programmes mainly include many agriculture and water resources projects. The prominent amongst them were: Sindh Water Resources Development, TFR-III Punjab Irrigated Agriculture and Barani Integrated Resources.

Officials further said that the ADB would give a presentation to the officials of the Planning Commission, most likely on Sept 2, regarding the technical assistance for the study of competitiveness and structural transformation in Pakistan.

In this regard, a team of ADB Manila comprising Principal Economist Jesus Felipe, Professor Ricardo from the Harvard University and others has already arrived in Pakistan on Aug 24 and they conducted meeting/presentations with four provinces.

Presentation: The same ADB delegation would give their presentation over the Pakistani economic indications since the beginning to date, loopholes, problems and their solutions. The officials said that the expected outcome of the presentation would be diagnostic analysis for providing assessment of the impediments to structural changes.

During the presentation, the officials said the ADB experts would also review the country’s overall exports, the problems in this regard and would forward suggestions for improvement. The ADB team would also forward a comprehensive plan for industrial development of the country.

The officials further informed that a number of developmental projects, particularly related for the improvement of agriculture sector and construction of small dams would be handed over to the ADB for financial support. The government had already imposed a cut of Rs 100 billion in Public Sector Development Program (PSDP) 2008-09. In this regard, the Planning Commission had sent reminders to all ministries/divisions to prioritise their projects and also forwarded proposals for running some of the projects through public-private partnership basis.

 

[Neo]

KICT crowded by import containers: over $550 million export cargoes may not be shipped for three days​

KARACHI (August 27 2008): Over $550 million export consignments are unlikely to be shipped for the next 72 hours from Karachi International Containers Terminal (KICT) because the space is occupied by imported cargoes last eight days.

Sources told Business Recorder on Tuesday that a large number of imported goods containers has not been cleared because of transporters' strike, putting immense burden at KICT where there is no space for export cargo. They said that the around 5000 imported goods containers would take at least three more days to be taken out of KICT.

They said that the KICT management has decided to stop processing export consignments for over 72 hours. Sources in KICT said that the terminal has not stopped processing export consignments, and added that the management has asked exporters to send lesser number of consignments during the next three days.

"Although KICT has not enough space left for containers where around 10000 containers are lying for some eight days, the process to clear export consignments has not been stopped to facilitate the exporters". Meanwhile, Karachi Goods Carrier Association (KGCA) has called off the strike and has started transporting cargo from Tuesday evening.

Sources in KGCA told Business Recorder that the government had agreed to reduce 40 percent toll tax, which would be exercised from 2009. However, association members stressed the need of reducing diesel prices, and pressed Niazi to continue strike till its reduction.

Niazi was beaten up by them and was forcibly made to announce to continue the strike on Monday midnight, they added. They said that the law enforcement agencies and other concern authorities have taken up the issue and resolved it and added that transporters have finally resumed transportation activities from Tuesday evening.

 

[Neo]

Oil against deferred payments: Pakistani team holds talks with Saudi authorities ​

ISLAMABAD (August 27 2008): A top-level official delegation, headed by Petroleum and Foreign Minister, Shah Mahmood Qureshi, has air-dashed to Saudi Arabia to negotiate modalities with the Saudi authorities for a 5 to 6 billion dollar oil facility against deferred payments. The facility would be available to Pakistan for three years.

Pakistan's delegation comprised, Shah Mahmood Qureshi, Secretary Finance Furrukh Qayyum, Acting Secretary Petroleum G.A Sabri, Additional Secretary Finance, Asif Bajwa. Pakistan ambassador to Saudi Arabia is also accompanying the delegation for talks with Saudi authorities.

The Pak delegation held the first round of talks on Tuesday and will be back in Islamabad on August 28 or 29. Pakistan considers the oil facility from Saudi Arabia as a special support to help pull its ailing economy out from a bad patch.

Sources said the Saudi authorities had invited Pakistani officials last week for finalising modalities for the oil facility. Saudi government had hinted at giving Pakistan the oil facility for three to four years against deferred payments during Prime Minister, Syed Yusuf Raza Gilani's visit to Saudi Arabia in June last.

He was also accompanied with PPP co-chairman, Asif Ali Zardari. Pakistan's leadership had informed Saudi King and other leadership that Pakistan badly needs support in the form of oil facility to release pressure on its economy due to rising prices of petroleum products Pakistan's oil import bill had crossed a all-time high level of $11 billion in 2007-08. It resulted in severe pressure on its economy besides widening trade and current account deficit. Poor performance of all key sector of the economy forced the government to seek financial support from trusted friendly countries including Saudi Arabia, UAE China and USA.

Although it got positive response from majority of the country it selected for seeking support. However, it wanted a major support from Saudi Arabia in the form of oil facility. Saudi Arabia provides Pakistan 110,000 barrel crude oil per day. It is one of the major oil suppliers to Pakistan. It had given a facility of oil for 5 years soon after nuclear device detonation in 1998 and helped Pakistan come out of huge pressure due to various sanctions.

 

[Neo]

Pakistan now Asia's second worst performing market: research report ​

KARACHI (August 27 2008): Pakistan has become the second worst performing market in Asia, as after posting average annual gains of 28 percent during the last 10 years, it is down by 45 percent in US dollar terms in the current year from January 01, 2008 to date, analysts said.

"The slowdown in the overall economy, coupled with political uncertainty after the February election has affected investors' sentiments, Mohammed Sohail, senior analyst at JS Global Capital said in a research report and added that a decline of 19 percent in Pakistan currency to date has also eroded equity values in dollar terms.

The research report said that the global credit crunch and the turbulence in the currency markets have significantly shaken investors in the global equity markets. The emerging markets which were believed to be protracted with global credit crunch, spiralling inflation at the back of soaring oil and food prices, led these markets to drop significantly so far in the calendar year 2008. MSCI Asian Emerging Market Index is down 29 percent to date.

Analysing the performance of 13 Asian emerging countries, China 's Shanghai market ranks the worst performing market so far in 2008 with the index fell by 52 percent. This is followed by Pakistan and Vietnam which are down 45 percent and 44 percent in dollar terms, respectively.

China's Shanghai Index which had recorded a peak level of 5771 in the early 2008, is down due to rising concern over slowdown in economy and mounting inflation - or stagflation. Likewise, in Vietnam, recent ratings cut and record inflation have worsened market sentiments.

Pakistan, on the other hand, is affected both by the exogenous factors (higher international oil and food prices) and endogenous factors (political impasse). This has significantly weakened the local currency (down 19 percent so far in 2008) and forex reserves which are at 5-year low and covers less than 12 weeks of imports.

Moreover, Pak rupee is the world's fourth worst performer, behind the Zimbabwean dollar, Turkmenistan manat and Icelandic korona. Interestingly, two smaller markets Sri Lanka and Bangladesh have emerged as the best performing markets so far in 2008 with a decline of only 6 percent and 10 percent in dollar terms, the report said.

 

[Neo]

JBIC ready to finance $750 million Port Bridge ​

KARACHI (August 27 2008): Japan Bank for International Co-operation (JBIC) has agreed to finance the $750 million Port Bridge, a cable stay bridge to be built by Karachi Port Trust (KPT) over its navigational channel at Karachi port.

According to KPT sources the Japanese bank has shown its satisfaction over the feasibility report of the bridge, which would connect the proposed Pakistan Deep Water Container Port (PDWCP) to the Cargo Village at western backwaters and onwards to the Northern Bypass and Lyari Expressway.

"Our plans for the bridge are vindicated by the fact that the JBIC concurs with our feasibility report and is ready to finance the Port Bridge," they added. KPT, the sources said, has envisaged the bridge to be higher than the San Francisco Golden Gate Bridge with a 68-meter air draft, 300 meter span and approximately six kilometres causeway length.

They said this would be for the first time that KPT, which is a profitable semi-governmental institution, and since long has not opted for any loan or grant for port development works, would try its hand at a foreign lending to materialise the mega project.

KPT had always used its revenues to develop its infrastructure and had embarked upon development of various projects from its own resources, they said. The proposed bridge would be the first of its kind in Pakistan and would be completed within four years, said the sources.

They said the bridge would have two causeways, the first to connect Manora to the Clifton's Defence area and Sandspit Road while the other would extend further to pass over western backwaters. According to the sources KPT has awarded engineering consultancy for the project to M/s Leonhardt Andra and Partners of Germany.

 

[Neo]

France expects to expand trade ties with Pakistan ​

KARACHI (August 27 2008): Commercial Consular of France, Francis Widmer has said that France would like to expand its trade and economic relations with Pakistan. Speaking at a meeting of Korangi Association of Trade and Industry (KATI), he said that French businessmen would like to have joint venture with Pakistani entrepreneur in different areas.

He said that Pakistan had vast market for French products and is a very attractive country to invest, however, he said emphasised on political stability for sustainable economic development.

 

[Neo]

10-year tax holiday for industries in interior Sindh recommended​

KARACHI (August 26 2008): Sindh Minister for Industries and Commerce, Mohammed Abdul Rauf Siddiqui said on Monday that the provincial government has urged the federal government to announce ten-year tax holiday for industries in the interior of Sindh. Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI), he said that allowing ten-year tax holiday would help boost industrialisation in the interior of Sindh.

He said that the government has also decided to establish more industrial zones in the province. Government wants to develop every area of the province and encourage investors to establish industrial units, he added. He said that the government has already allocated 300 acres of land in Hyderabad, 500 acres in Dhabije for new industrial zones.

More land will be allocated on Super Highway for industrial estates, he said. He said industrial plots would be allotted to all applicants. These plots will not be sold transferred to other person. Allottees have to establish units within a specified time, otherwise these plots would be taken back explained

He announced the formation of a seven of member ministerial consultative committee comprising Zubair Motiwala, Siraj Kassim Teli, Shamim Ahmed Shamsi, S. M. Munir, government officials and other representatives of trade bodies.

He said that the committee would prepare a comprehensive industrial and trade development plan and point out bottlenecks hindering the growth of this sector. He assured the business community that their trade, industrial and investment problems would be taken up with the concern federal ministers by next week.

President KCCI, Shamim Ahmed Shamsi said that there is severe energy crisis in Pakistan, as its production does not cope with the demand, which is increasing by 10-12 percent per annum.

To solve the problem the government is resorting to frequent increase the prices of POL products. This may risk losing government credibility if nothing is done to generate electricity at affordable rates. Rising inflation and burgeoning fiscal deficit have already constrained the government's ability to subsidies power production from imported oil.

It will not be out of place to mention here that India has reduced POL prices, and has issued oil bonds to the retailers to compensate them for losses they suffered in selling oil at below the market rate. Consumers in India are getting petrol at Rs 45.52 per liter, he added.

 

[Neo]

Software piracy: 'Pakistan missing huge investment opportunity'​

KARACHI (August 27 2008): Country Manager, Microsoft Kamal Ahmad, has said the foreign investors are not taking interest to commence research work in IT sector and Pakistan is missing huge investment opportunity because of software piracy. He was speaking in a workshop on "Countering Software Piracy as a Social and Economic Issue" held at local hotel on Tuesday.

He said software piracy is a big hurdle in the way of progress of our society in general and IT sector in specific and added that presently around 84 percent pirated software are being used in Pakistan. Kamal said that if it is cut down to 66 percent in the next four years, around 12,000 new jobs would be created in the IT sector and urged media professional to play their due role in this regard.

Ameena Saiyid, Managing Director of Oxford University Press, Salman Siddiqui, Genuine Software Manager, Microsoft Pakistan, Amar Naseer, Anti Counterfeit and Infringement Forum (ACIF) also spoke on the occasion.

They said that software piracy is a global problem, providing huge losses of over $40 billion annually. In Pakistan, the productive sector is bearing the brunt of massive use of pirated and untaxed software. A mere 10 percent decrease in piracy rate in the country can contribute $163 million to GDP and raise $23 million in additional income to the government.

They further said that increased use of legitimate software would also promote a better environment for foreign companies to invest in Pakistan besides inspiring entrepreneurship in IT sectors, resulting in higher software exports as well as a greater market share in the business process outsourcing industry.

 

[Neo]

'Pakistan capable of meeting water scarcity challenges'​

ISLAMABAD (August 27 2008): Pakistan can overcome impending water scarcity challenges by adopting proper and timely strategies besides enhancing its reservoirs and reducing water losses in the country, water experts said at a two-day conference which began here on Tuesday.

The national conference on Water Shortage and Future Agriculture Challenges and Opportunities has been organised by Agriculture Foundation of Pakistan in collaboration with Pakistan Science Foundation and Pakistan Agriculture Research Council. The rapid change in climatic components and water shortage was becoming a serious challenge to agriculture, they added.

The speakers were of the view that, being arid country, it has become imperative for country's scientists to develop strategies to cope with changing environment and reduce availability of irrigation water to produce enough food and cash crops for meeting the requirement of rapidly increasing population.

Speaking as chief guest, former Chief Minister, NWFP, and Former Chairman Wapda, Shams-ul-Mulk said the water issue has become so complicated which needs to be addressed instead of doing politics on it.

"Water is a matter of survival and no politics should be done on it as we are already late to do politics on the issue," he remarked and said that Kalabagh dam was more important for NWFP than any other province of the country.

He stressed the need for constructing dams, saying that currently there were two crisis at global level ie energy and food crisis and both have linkage with dams. Moreover, he also stressed the need for removing the seasonal imbalances in water distribution to have maximum utilisation of the resources.

In his detailed keynote address, Project Co-ordinator Asian Development Bank, Shahid Ahmed presented an optimistic view of water resources in the country however stressed the need for proper management to overcome challenges. He said that Pakistan was lagging far behind in storing water, which should be matter of concern and highlighted the need for improving the secondary canal system to decrease water losses.

He said that absence of conducive environment to introduce water efficient irrigation techniques, inadequate and ineffective participation of private sector, deteriorating institutional capacity of key water sector institutions were the problems which needed to be addressed for ensuring economic use of water. Speaking on the occasion, Director General NARC Dr Zahoor Ahmed said Pakistan did not manage water resources which lead to water scarcity in the country.

He said that the country was storing only 9 percent of water flow against 44 percent stored in other parts of the world, adding that innovative and modern techniques must be adopted to make country water secure. Chairman of the Organising Committee, Altaf Hussain Chaudhry, speaking on the occasion, said that the purpose of the seminar was to create interaction between farmers and agriculture researchers to share knowledge and expertise.

 

[General Fujita]

Pakistan Oil and Gas Development Company Limited may be up for sale

Thursday, 28 August 2008 00:00 Pakistan Daily
Pakistan was yesterday mulling all options, including handing over management control to the buyer, to privatise Oil and Gas Development Company Limited, producing more than one-thirds of domestic crude oil. A meeting of the members of the Board of Privatisation Commission (PC) decided the Financial Adviser for Oil and Gas Development Company Limited (OGDCL) would be asked to work out all the options for the company’s privatisation.

These options will be sale of shares, strategic sale with management control and assets sale including Qadirpur Gas Field on fast track basis taking into account the observance of all steps strictly in accordance with the legal provisions. Qadirpur Gas Field has gas reserves of about 3.5 tcf, worth $3 billion to $5 billion, and is 75 per cent owned by the OGDCL.

“It’s a big decision that the government has taken today and would bring substantial foreign investment through one of the biggest deals of Pakistan,” said one of the top officials of the PC on customary condition of anonymity. The government currently holds 85 per cent shares of the OGDCL. The official said the government opened all avenues in order to support depleting foreign exchange reserves.