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President Asif Ali Zardari offered special preferential treatment to the Chinese investors in Pakistan, urging them to invest in Pakistan and take advantage of the country's geo-strategic location.

"With a well-placed geographical location, Pakistan has to offer you the investor-friendly environment, laws and legislation, human capital and other resources", the President told a luncheon meeting with over 200 top Chinese corporate executives here at the State Guest House.

President Zardari said his first state visit to China was reflective of the deep-rooted, strong and historic 40 years ties with the two countries, which were pioneered by Shaheed Zulfiqar Ali Bhutto and carried forward by Mohtarma Benazir Bhutto Shaheed.

Taking pride of the fact that it was the PPP and Shaheed Zulfiqar Ali Bhutto who established relations with China ", the President said Pakistan needed further Chinese investment in various fields for the mutual benefit of the two friendly countries.

President Zardari said Pakistan shares the pride and considers China 's success in various fields as its own, adding, China by holding successful Olympics told the world how strong it was.

He stressed that Pakistan provides ample opportunities of investment in diverse fields including trade, industry, financial services, banking, energy, construction, real estate, tourism, etc and the Chinese companies can are welcomed to invest in any field to help develop the country's untapped potential.

President Zardari said with half of the world population living in China and Saarc countries, the increased Sino-Pak co-operation in all spheres of life and economy can help bring development and prosperity in the region. "With other countries interested to tap the trade potential of Pakistan, we offer the Chinese companies and entrepreneurs access to warm waters and beyond", he added.

The President said Pakistan located at the confluence of South Asia, Central Asia and the Middle East and a vast coastline provides a trade and energy corridor to many regional countries and China can take the lead in this respect for the mutual benefit.

Zardari said Pakistan having a lot of investment potential in various fields the development of Pakistan and China can go together. "Let us work together for mutual benefit and development of region", he added. The President mentioned hydro power, coal energy, tourism etc as the particular areas of co-operation between Pakistan and China and called upon the Chinese companies and investors to exploit the potential of these fields.

He said with other countries of the world and region taking keen interest in these areas, Pakistan will prefer Chinese entrepreneurs to come and invest in the country. The President assured all facilities to Chinese investors and said the government will establish a special cell for the creation of Pak-China industrial and economic zones across the country including the coastal areas.

Pakistan's Ambassador to China Masood Khan and Vice Chairman Chinese People's Political Consultative Conference (CPPCC), Huang Meng Fu in their introductory remarks highlighted the strong, deep-rooted, strategic and historic bonds that exist between Pakistan and China.

They also highlighted the ever-growing co-operation between the two friendly countries in diverse fields including trade and economy and stressed for further strengthening these ties for the mutual benefit of Pakistan and China. The members of President's entourage including the Ministers for Foreign Affairs, Defence, Environment, Advisors to PM on Finance and Interior, PPP's Secretary General Jahangir Badr and senior officials were present on the occasion.

Earlier, President Zardari had a pre-lunch meeting with Vice Chairman Chinese People's Political Consultative Conference (CPPCC), Huang Meng Fu and discussed the prospects of enhanced investment in Pakistan in various fields.

CDB GOVERNOR CALLS ON ZARDARI: Governor China Development Bank (CDB), Chen Yuan called on President Asif Ali Zardari here at the state guest house on Wednesday and discussed the prospects of trade and investment in various fields in Pakistan.

He assured the President of CDB's all out assistance and support to the public and private sector for the socio-economic development of Pakistan, particularly the development of infrastructure, to cater to the needs of growing economy.

President Zardari appreciated the CDB's support to Pakistan and hoped that the bank will continue to extend its assistance for Pakistan's development efforts. Foreign Minister Makhdoom Shah Mehmood Qureshi, Defence Minister Chaudhry Ahmed Mukhtar, Minister for Environment Hameedullah Jan Afridi, Advisor to PM on Interior Rehman Malik, Advisor to PM on Finance and Economic Affairs Shaukat Tareen and senior Pakistani officials were present in the meeting.
 

ISLAMABAD (October 15 2008): The Economic Co-ordination Committee (ECC) of the Cabinet which met here on Tuesday with Prime Minister Syed Yusuf Raza Gilani in the chair, approved an incentive-laden national policy to attract investment for existing and upcoming industrial and economic zones.

Sources said the Board of Investment (BoI) had submitted the summary to the ECC for grant of a lucrative package to attract investment for Gwadar Export Processing Zone (GEPZ) and other existing and upcoming economic and industrial zones. The policy offers 10-year tax holiday for the zones.

Sources said tax holiday in the case of GEPZ will be applicable to investors from the date of start of commercial operation of the project, permission for export of production from the zone to tariff area of the country up to 80 percent on payment of normal duties.

The package also offers normal incentives for all kinds of exports from the zones as available to projects established anywhere in Pakistan. As an incentive, the plots in the zones will be provided to investors on lease (as per existing procedure) at a reasonable rate to be determined in consultation with the respective provincial government.

The package also includes zero rated sales tax on supply of construction materials to investors or development of zones' infrastructure. It also includes exemption from stamp duty and exemption from import policy orders issued from time to time.

The committee deferred gas load management plan for 2008-09 winter season and constituted a 5-member committee headed by MNA Hina Rabbani Khar, to revisit the whole scheme to make it more doable. The members of the committee were petroleum secretary, textile secretary, industries secretary and water and power secretary. The committee will submit revised gas load management plan to the ECC in next meeting.

The Ministry of Petroleum and Natural Resources (MP&NR) presented gas load shedding plan to the committee for approval. The Economic Monitoring Committee (EMC) had approved the plan last month.

The officials of the Petroleum Ministry informed the ECC that this year the gap in gas demand and supply will be more than last year and it has to introduce one weekly off of gas for the industrial sector. They also informed the committee that a rotational formula would be implemented for different industrial sectors for one-day weekly gas holiday.

According to the official statistics, only 2,567-mmcfd gas will be available for different consumers' categories during upcoming winter season when consumption will go all time high with additional demand of domestic sector. It shows a gap of 1000-mmcfd gas in demand and supply during winter season.

The ECC was also informed about the progress of liquefied natural gas (LNG) import project. The LNG import project is being seen as an important move to have an alternative sources to minimise the gap in gas demand and supply in future. The ECC was informed about sugar, wheat and fertiliser availability and their price trend for future.

The committee also approved a summary of the Water and Power Ministry for early resolution of issues confronted with Karachi Electric Supply Company (KESC). It directed the concerned authorities to sort out payment and other issues to help KESC overcome its financial crisis and perform better to ensure more supply of electricity to its consumers.

The officials of the Finance Ministry informed the ECC that the price of sugar and the wheat stock position were stable in the open market. The committee on the issue of subsidy decided to provide a Rs 22 billion subsidy for DAP and urea at affordable rates. The committee was also given a presentation on kitchen items. It was informed that the prices of the most of kitchen items including cooking oil/ghee were showing downward trend.
 

ISLAMABAD (October 15 2008): Pakistan anticipates about $1 billion investment from Saudi investors in different sectors of the economy with agriculture and petroleum considered the most attractive sectors, Business Recorder learnt reliably. Sources said that a two-day Saudi-Pak investment conference attended by investors from Pakistan and Saudi Arabia will be held in Jeddah and Riyadh on October 20-21 to explore investment possibilities.

Pakistani delegation would be leaving for Saudi Arabia on October 17 and will include over 125 private investors from different sectors of the economy. Informed sources revealed that the government of Pakistan will be carrying a wish list from 12 sectors desperately seeking financial injection from Saudi investors. These sectors include: petroleum and petro-chemical, power sector, textile, manufacturing, banking and financial sector, fertiliser, Small and Medium Enterprises (SMEs), agriculture, infrastructure, construction, tourism industry and IT telecom sector.

The major thrust is to be on the agriculture sector with the government seeking Saudi investment in dairy, livestock and fisheries sub-sectors. An official told this scribe that the government of Saudi Arabia has bought 60,000 acres of land in Thailand to grow rice and become less dependant on food items' import.

The Pakistan delegation is expected to propose a similar idea to the Saudi government and investors. The deal is envisaged to be between the private sectors of the two countries and the official informed this scribe that the Saudis would be offered land on a lease basis. The details have not yet been worked out and would be firmed up after consultation with the Saudi investors. Joint ventures may also be possible between Pakistani landowners and Saudi investors.

Saudi investment will also be sought in petroleum and power sectors. Pakistan needs two oil refineries with a capacity of 6 million tonnes each; and power projects to overcome electricity shortage that has been affecting industry as well as domestic households. The government is expected to ask Saudi investors to set up coal, hydel and gas based power plant in Pakistan.

The conference is being jointly organised by the Pakistani Board of Investment, Saudi Ministry of Finance and Council of Saudi Chambers to effectively promote and encourage investment in the potential sectors and joint ventures between the businessmen of both the countries. The Pakistani investors' delegation will be led by Finance Minister, Housing Minister, Deputy Minister of Investment and Federation of Pakistani Chambers of Commerce and Industry (FPCCI).

In Jeddah, the conference will commence on October 21 in the auditorium of the Jeddah Chambers of Commerce and Industry, followed by business-to-business meetings and sector wide group meetings between the businessmen of both the countries. The event will be provided full coverage by local and foreign media through conducting media sessions and press briefings.
 

ISLAMABAD (October 15 2008): Pakistan's ambassador to China Masood Khan has said that a civil nuclear pact is expected between China and Pakistan during President Zardari's maiden visit to China. Talking to a private TV channel on Tuesday, Masood Khan said both countries would ink several agreements in the field of technology, agriculture, minerals and free trade agreement (FTA).

Khan said the President would also sign a new protocol of free trade in which permission for more trade will be granted. To a question on civil nuclear pact, Khan said, "Both countries have always supported the peaceful use of civil nuclear energy, adding agreement is expected in this connection."

He said Zardari's four-day visit to Beijing will be a milestone in the bilateral relationship "which have matured into comprehensive strategic partnership" between the two sides. Khan said the two countries had "exemplary friendly relations" and the top leadership is committed to further deepen the "time-tested" ties. China had last week said that it is looking forward to and welcomes Zardari's visit to the country. China expects Zardari's visit to deepen bilateral strategic and co-operative partnership, a Chinese Foreign Ministry spokesman said.
 

NEW DELHI (October 15 2008): Pakistan's National Security Adviser Mahmud Ali Durrani conveyed concern over reduced flow in Chenab river during his meeting with Indian counterpart M.K. Narayanan on Monday. Sources said that Durrani was assured that India would abide by the provisions of the Indus Water Treaty.

According to the sources, Durrani categorically stated during the meeting that no Pakistani agency was involved in the recent explosion at the Indian embassy in Kabul. In response to a point raised by the Indian side during the talks, he stated that all security agencies, including ISI, were firmly under the control of political leadership, the sources said.

The adviser assured his Indian interlocutor that Pakistan was committed to upholding the cease-fire on LoC in Kashmir, emphasising that there was a need to strengthen the relevant mechanism so that the concerns of both sides were addressed fairly.

National Security Adviser Mahmud Ali Durrani described his meeting with Indian External Affairs Minister Pranab Mukherjee here on Tuesday as "very good." Talking to media persons briefly after the meeting, he said, "I had a very good meeting with the foreign minister and things are going okay." "No No No Incorrect," was his answer when his comment was sought on the allegation about Pakistani agency's role in the recent bombing at the Indian Embassy in Kabul.

Durrani discussed bilateral relations during the meeting with the Indian external affairs minister. Meanwhile, Durrani also called on Indian Prime Minister Manmohan Singh here on Tuesday afternoon. They discussed ways to improve bilateral relations for the benefit of people of both countries.
 

ISLAMABAD (October 15 2008): The country may suffer 14 to 17 percent decline in sugarcane production in the current fiscal year, well-placed sources told Business Recorder here on Tuesday. The production target is 56.5 million tons for 2008-09 as compared to 63.9 million tons during 2007-08, showing a decrease of about 11.6.

There are about 200 countries producing 1,324.6 million tons of sugarcane. Nowadays, about 70 percent of the world sugar supply is derived from sugarcane, while the remaining 30 percent from sugar beet, the major quantity of which is produced in industrialised countries. The highest production of sugarcane during 2007-08 was recorded in Punjab with an average yield of 690mds/acre, while the lowest in NWFP with average yield of 566mds/acre.

Due to surplus production in 2007-08, farmers were paid less than the minimum support price of sugarcane. "The total cost of production was around Rs 20000 per acre and Rs 60 per maund while the transportation cost doubled because of waiting for weighting for over 30-36 hours at the mills' gate," sources said.

They said that the growers received just Rs 28 per maund. Sources said that less price of the commodity has discouraged farmers grow more this year. One million hectares of sugarcane crop consumes 15 million acre feet (MAF) water till its maturity. Tarbela Dam's capacity is 15 MAF.

They said that some areas of Southern Punjab were facing shortage of water. Last year, the government had fixed Rs 67 per 40-kg sugarcane support price but sugar mill owners refused to purchase the crop on this price. Later, the government re-fixed it at Rs 63 per 40-kg.

Due to non-availability of expensive fertilisers like DAP and urea on affordable rates in the domestic market coupled with shortage of water, the government has decided to fix the minimum support price of sugarcane at Rs 80 per maund, that may lead to increase in the prices of sugar. Sources said that the government should make sure that crushing season must be start on time from mid of October.

Sources disclosed that due to the less production, sugar mills owners would offer more in competition and resultantly the sugarcane prices may increase to Rs 100 per 40-kg in the upcoming crushing season. There are 78 sugar mills in Pakistan. The sugar industry in Pakistan is the second largest after textiles.

Currently, 76 sugar mills produce at or below capacity. About 80-85 percent of the total sugarcane production goes to the production of sugar. The country is likely to face sugar shortage next season as consumption has increased to 4.2 million tons while expected production next season could be close to 3.5 million tons. The sources said that the country may import one million tons sugar in the coming season to overcome the shortage.
 

ISLAMABAD (October 15 2008): The Economic Monitoring Committee (EMC) has been informed by the Finance Ministry that the sugar industry projects 3.7 to 3.8 million tons sugar production from 2008-09 crushing season, commencing November 15.

The committee in its last meeting was also informed that the sugar industry has given a commitment to the government to begin upcoming crushing season from November 15.

Sources said despite less area of plantation, PSMA pins hopes of a reasonable sugar output from upcoming season on the grounds that the crop yield was going to remain better than last season due to timely rains. PSMA Punjab and Sindh zones have already submitted crushing season plan to the respective provincial Cane Commissioners.

A PSMA team headed by Punjab zone chairman Javed Kayani had held meetings with the officials in Islamabad to apprise them of the sugar industry plan to encourage growers to work closely with mills to increase per acre yield. The plan stressed the need for eliminating middleman's role in sugarcane buying and give direct benefit to growers. It also gives a commitment on the part of the industry to ensure timely payments to growers. Over the years payment to growers is becoming a bitter controversy. The growers complain of delay in payments by sugar mills.

A report presented to the EMC indicated that with the start of the crushing season, sugar prices will come down reasonably to the benefit of the consumers. The government and PSMA had serious differences over the start of the crushing season that provided a golden opportunity to the middleman to exploit the market and create an impression of sugar shortage.

Sugar prices are showing upward trend for several months and in the open market the prices of one kg sugar ranges between Rs 35 and Rs 36. The EMC was informed that the government will take all possible steps to keep the sugar rates at a reasonable level.
 
By GILLIAN WONG, Associated Press Writer
Wed Oct 15, 2008

BEIJING - Pakistan's president Wednesday won more help from longtime ally China as his country grapples with an ailing economy and chronic electricity shortages, though the prospect of a much anticipated civilian nuclear deal remained uncertain.

Pakistani media have speculated that President Asif Ali Zardari would seek a nuclear power deal with China after neighbor and nuclear archrival India secured a similar pact with the United States.

Zardari and Chinese President Hu Jintao attended a signing ceremony here for 11 agreements, including deals on economic and technical cooperation, minerals, environmental protection, satellite purchases, agricultural research, and electricity.

However, no specifics of the deals were released, and there was no mention of a civilian nuclear deal.

Pakistan has argued in vain for equal treatment from Washington after India secured an agreement allowing American businesses to sell nuclear fuel and technology to India for use in civilian programs.

Pakistan is desperately seeking assistance to alleviate an economic crisis brought on by higher oil and food prices.

Increased expenses have pushed inflation to 25 percent, wrecking the government's finances and exacerbating a trade gap that is fast eating up the country's foreign currency reserves.

Rising demand and inadequate energy infrastructure in Pakistan has led to nationwide electricity outages, fueling protests. Residents must contend with up to 10 hours a day of power outages, though officials are trying to maintain supplies to factories.

Compounding the problems, al-Qaida and Taliban militants are using Pakistan's tribal areas as bases from which to attack U.S. and NATO forces in Afghanistan, spurring U.S. frustration with Pakistan. Cross-border U.S. raids have strained ties with Pakistan.

Zardari is on a four-day trip to China, his first official bilateral visit since taking office in September.

Pakistan and China have been close allies for decades, and China is a leading source of investment and arms supplies for Pakistan. Bilateral trade between the two topped $7 billion last year, with a goal of reaching $15 billion by 2011.

Both nations have also fought border wars with rival India.

"The only way I could do justice to the memory of my late wife and my late father-in-law was to make sure that I made my first president's trip to China as my official visit," Zardari told Hu during a welcoming ceremony at the Great Hall of the People.

Zardari's wife, former Prime Minister Benazir Bhutto, who was killed in a bombing last year, and his father-in-law, Prime Minister Zulfikar Ali Bhutto, "are old friends of the Chinese people,"' Hu replied.

The two "made important contributions to the initiation and development of China-Pakistan relations in their lifetime. This is something we will never forget," Hu said before the two leaders went into private meetings.

Experts say a nuclear agreement with Pakistan would need to overcome significant political uncertainties in the South Asian country.

"The political situation is so uncertain, nobody quite knows how strong the radicals are ... I would be surprised if the Chinese made a concrete offer," said Rajesh Basrur, an associate professor at the S. Rajaratnam School of International Studies in Singapore.

Basrur said members of the Nuclear Suppliers Group states would also need to approve the deal. The group restricts nuclear trade with states that have not signed the Nuclear Nonproliferation Treaty or don't have comprehensive safeguards.

Zardari was scheduled to hold talks with other top Chinese leaders, including Premier Wen Jiabao.

Zardari easily won the presidency last month after longtime U.S. ally Pervez Musharraf quit under threat of impeachment.
 
volume 4, issue 1

October 6, 2008

PAI Research Commentary By Karen Hardee and Elizabeth Leahy​

Since 2001, the geopolitical significance of Pakistan has become increasingly clear to the world, as has the country’s instability. Throughout this decade, Pakistan has suffered from growing strife, including, in the last year, the assassination of former Prime Minister Benazir Bhutto and the bombing and destruction of the country’s most prominent American-owned hotel. The recent change in government from military to fragile civilian rule, accompanied by growing strength among extremists in tribal areas, has only compounded the precarious nature of the country's security.1

from these recent headlines, few outsiders may realize the significant role that demographics play in Pakistan’s overall development and security. And few are likely aware of the stagnation of Pakistan’s family planning program, which provides key services to Pakistani families and affects the country’s larger demographic trajectory. The provision of comprehensive, voluntary family planning and reproductive health services is a fundamental human right, and yet today these services still remain out of reach for millions of Pakistanis.2 In fact, one-quarter of married women want to either wait before having another child or end childbearing altogether, but are not using a method of contraception. The broader impacts of this unmet need for family planning on health and development are significant and should not be ignored.

In countries such as Pakistan, the challenges of providing for people’s well-being—opportunities for education and employment, as well as access to quality health care—can be exacerbated by a rapidly growing population. Research has found that countries with a very young and youthful age structure—those in which at least 60 percent of the population is younger than 30, like Pakistan (Figure 1)—are more likely to have autocratic governance and face outbreaks of civil conflict.3 Young people are not inherently problematic or dangerous, and many countries with very young age structures achieve higher levels of development without internal conflict. However, governments that are already weak, unstable or corrupt can see their political and economic resources further strained by demographic factors.

Figure 1. Pakistan’s Age Structure, 2005

The context for providing family planning in Pakistan is challenging. The political strife that has intensified over the past two decades, coupled with cultural constraints limiting the empowerment of women, make the implementation of effective programs in many parts of the country difficult. As a result, most Pakistani women who say they have had enough children or that they want to wait to have their next child do not have ready access to the contraceptive services and reproductive health care they need. Pakistan’s family planning program needs strong and consistent leadership, a sustained strategy to expand access to services and adequate resources.

Pakistan was among the vanguard countries in Asia in starting a family planning program more than five decades ago, with intermittent support from international donors including the United States. Despite this history, fertility has declined more slowly in Pakistan than in most other Asian countries (Figure 2). Related measures of maternal and child health are concerning as well; the country’s infant mortality rate of 75 deaths per 1,000 live births is higher than in Bangladesh, India, Nepal and Sri Lanka. In 1950, Pakistan had a population of 37 million people and was the world’s 13th largest country as measured by population. By 2007, Pakistan was the sixth largest country with 164 million people. Pakistan is projected by the United Nations to move to fifth place in 2050 with 292 million people, after India, China, the United States, and Indonesia.4

Figure 2. Total Fertility Rates in Selected South Asian Countries, 1965-20055

Fertility Remains High at Four Children

Results from the 2006-07 Demographic and Health Survey (DHS)6 show that Pakistan’s fertility rate has remained persistently high over the past decade (Figure 3)7. The total fertility rate (TFR)8 in Pakistan is now 4.1 children per woman. Women in urban areas have an average of 3.3 children compared to their rural counterparts, who have an average of 4.5 children.

Currently married women in Pakistan report that on average, their ideal family size is 4.1 children, which is equal to their actual total fertility rate. However, women also say that 24 percent of recent births were mistimed or unwanted; rural and poor women are especially likely to have more children than they want to have. Although family planning decisions tend to be made by couples rather than by women alone, communication is sometimes lacking; about one-fifth of women don’t know how many children their husband would like to have.9

Figure 3. Estimates of Pakistan’s Fertility Rate, 1994-200610

Pakistan remains a predominantly rural country with an unevenly distributed population. One-third of the women interviewed in the 2006-07 DHS lived in cities, while two-thirds lived in rural areas. Nearly 80 percent of the population lives in the two eastern provinces, Punjab and Sindh (Figure 4)11. The DHS reflects this geographic distribution; of the 10,023 women of reproductive age interviewed in the DHS:
58 percent were from the Punjab,
24 percent were from Sindh,
14 percent were from the North West Frontier Province (NWFP), and
5 percent were from Balochistan12.

Figure 4. Map of Pakistan

Available from Home-Planning Commission of Pakistan

Women Know About Family Planning, but Knowledge Does Not Always Translate into Use

After nearly 50 years of family planning programs in the country, 96 percent of currently married women are aware of at least one modern method of contraception. However, only half of Pakistani women said they had ever used contraception and, at the time of the 2006-07 survey, only 22 percent of married women who were not currently pregnant said they were currently using a modern contraceptive method; another eight percent were using less effective traditional methods.

Although Pakistan had success in increasing contraceptive use in the 1980s and 1990s, a plateau has been reached in recent years. The contraceptive prevalence rate (CPR), or the percentage of married, non-pregnant women using both modern and traditional methods of contraception, rose from 12 percent in 1990-91 to 28 percent in 2000-01, but has remained around 30 percent since then. Almost half of currently married women have used contraceptives (modern or traditional methods) at one time, indicating that a significant share of women have discontinued use of family planning.

The most common contraceptive methods in use in Pakistan are either long-term or have low effectiveness (Figure 5). These include female sterilization (8 percent of married women), traditional methods such as rhythm and withdrawal (8 percent), and condoms (7 percent). Contraceptive use is lowest among young and rural women, but rises with education. Women living in urban areas are two-thirds as likely to use modern contraceptives as those in rural areas (30 and 18 percent prevalence rates, respectively). The gap between women with differing levels of education is smaller than the rural-urban divide, but still significant. Only 19 percent of women with no education are using a modern method of family planning, compared to 26 percent of women who completed secondary school. The link between higher levels of education among women and smaller family size across the developing world is clear; on average, each year of girls’ education has been found to reduce fertility rates by 0.3 to 0.5 children per woman.13 This is a particularly salient connection for Pakistan, where most women—fully 65 percent of those surveyed in the DHS—have no education.

Figure 5. Current Use of Contraceptive Methods among Married Women Age 15-4914

A large share of Pakistani women continue to have an unmet need for family planning; that is, they want to either wait for their next child or not have any more children but are not using a method of contraception. One-quarter of married women of reproductive age are estimated to have an unmet need, with a greater share of the need among women who say they want no more children. Unmet need is highest among the poor, those living in rural areas, and women with no education.

Among married women who are not using family planning and have no intention to use contraceptives in the future, only three percent cite a desire for more children as their reason, and another three percent don’t know how to use or obtain a contraceptive method. The most common barriers to use of family planning among married women are a belief that fertility should be determined by God (28 percent); opposition to use by the woman, her husband, others or a perceived religious prohibition (23 percent); infertility (15 percent); and concerns about health, side effects or the cost of family planning (12 percent).

More Women in Pakistan Would Use Contraception if Services Were More Widely Available

Many experts have written about Pakistan’s family planning program and the reasons for its limited success.15 Causes relate to both the strength and reach of the family planning program and to strong cultural deterrents to contraceptive use, such as religious beliefs and women’s limited autonomy in decision-making. Over the years Pakistan’s family planning program has experienced varying levels of political and donor support and many shifts in strategy and program management.

In the early 1990s, when contraceptive prevalence was 14 percent, a mere 20 percent of the country’s population was considered to be effectively covered by Pakistan’s Population Welfare Program.16 At that time, one study found that women living in villages covered by a family planning center were much more likely to be using contraception than those outside the village.17 Given women’s limited mobility due to the cultural practice of Purdah, in which women’s activities outside the household are severely constrained, many women were likely out of reach of reproductive health care even when clinics were available in their villages. Zeba Sathar, the director of the Population Council in Pakistan has noted that the subordinate status of women—whose legal rights may have even weakened in recent decades—as well as the government’s past neglect of the education sector have direct implications for fertility rates.18 Women remain underrepresented in many aspects of Pakistani society. Only 35 percent of adult women are literate, compared to 65 percent of men; and women represent just one-quarter of the country’s professional and technical workers. 19

To help address cultural and geographic barriers, in the early 1990s Pakistan instituted outreach programs in which women are visited at home in their villages by Lady Health Workers, members of the community who have received 15 months of training to deliver primary health care.20 A recent evaluation of the Lady Health Workers program found that women’s movement was still constrained. The 2002 evaluation found that “only 15 percent of rural women had been outside their village in the previous month without being accompanied by another adult,”21 and confirmed that services are much more effective when offered closer to where women live. Contraceptive use in villages with the community-based workers was 74 percent higher than in villages without.22

Pakistan’s family planning program is administered by two government ministries, the Ministry of Health (MOH) and the Ministry of Population Welfare (MOPW), which have each had inefficiencies in implementation. In both ministries, delivery of family planning services has been plagued by weak logistics systems and lack of contraceptive methods at service points as well as staff ill-trained and ill-equipped to provide quality services to clients. The Lady Health Workers program, while successful in reaching more women, faces high turnover of staff.

Pakistan’s Population Policy

Pakistan’s latest population policy dates from 2002, and reflects the government’s concerns about the rapid pace of population growth and its link to persistently high rates of poverty in the country.23The objectives of the policy are to reduce population growth (from 2.1 percent in 2002 to 1.9 percent by 2004 and 1.3 percent by 2020) and to reduce fertility through voluntary family planning (to 4 births per woman by 2004 and 2.1 births per woman by 2020). Pakistan has pledged to provide universal access to family planning by 2010, in line with being a signatory— along with the United States—to the Programme of Action of the 1994 International Conference on Population and Development in Cairo.

Given the persistently high fertility rates and unmet need for family planning outlined in the recent Demographic and Health Survey findings outlined above, major challenges remain in achieving the objectives of the population policy. According to the government’s Poverty Reduction Strategy Paper, the population policy also outlined a goal to steadily increase contraceptive use, with prevalence rising to 43 percent in 2006 and 57 percent in 2012.24With the target for 2006 already missed, access to family planning will have to scale up rapidly to reach 57 percent in the next four years.

Beyond the stagnation of the family planning program’s reach, Pakistan faces broad challenges to improving women’s reproductive health. As assessed by PAI’s A Measure of Survival, the country falls in the high risk category for women’s sexual and reproductive health. Only 16 percent of women receive at least four antenatal care visits during pregnancy, fewer than one-third of births are attended by skilled health personnel, and the maternal mortality ratio, at 320 maternal deaths per 100,000 live births, remains high.25,26

Trends in Funding for Family Planning in Pakistan

External funding for population assistance (comprising programs and research related to family planning, reproductive health, HIV/AIDS) in Pakistan has fluctuated significantly over the past decade. The total donor funding level of $32.5 million in 2005 was a slight decline from the $33.5 million received in 1996, although it varied dramatically in the intervening years, from as high as $57.3 million in 2003 to as low as $9.5 million in 2004.27

Figure 6. Donor Support for Population Assistance to Pakistan, 1996-200528

Within overall population assistance, funding for family planning activities in Pakistan has declined considerably in the 2000s, with average annual support falling by nearly half from $12.9 million from 1996-2000 to $6.7 million between 2001-2005. Donor support for reproductive health, which includes activities such information and education and prenatal, post-natal and safe delivery care, peaked in 2004 at $35.1 million, mainly due to a very large contribution from the government of the United Kingdom. The median annual external funding for reproductive health has been $9.1 million over the ten-year period. Meanwhile, funding for HIV/AIDS has generally been below that of both family planning and reproductive health, averaging $3.5 million annually. HIV/AIDS has not spread widely across Pakistan’s population, with prevalence among adults estimated at 0.1 percent in 2007.29

Bilateral and multilateral organizations, such as the United Nations and World Bank, have historically provided the bulk of donor support for population activities in Pakistan. U.S. government population assistance to Pakistan has been sporadic for most of the past decade. Until 2005, the U.S. Agency for International Development (USAID)’s highest level of annual population funding had been just over $600,000. However, in 2005 USAID provided $10.6 million to Pakistan, with nearly 80 percent of the funds directed to family planning activities. For example, USAID’s Family Advancement for Life and Health project, implemented by the Population Council, works to raise awareness about the health benefits of birth spacing and train family planning providers.


The Future for Family Planning in Pakistan
Expert demographer and family planning program specialist John Ross and colleagues have found that countries in which contraceptive prevalence reaches a plateau generally take steps to address the stall in family planning use, and that plateaus rarely repeat in a county. Their analysis has also found that “once prevalence reaches the range of about 25 percent it continues upward.”30Although total contraceptive prevalence (including both modern and traditional methods) is 30 percent in Pakistan, this is an increase of only 0.3 percent annually since 2000-01 and a decline from a measurement of 32 percent in 2003, which seems to signal a plateau. Likely factors for the current plateau in family planning include weakened programs at all levels and a narrow method mix, with few effective options of short term methods.


Still, some factors bode well for the future of Pakistan’s family planning program. There is a clear latent demand for family planning, with 70 percent of married women using no contraceptive method and 25 percent indicating an unmet need for family planning. Long-term methods, which by nature have lower discontinuation rates, are popular. Further, Pakistan’s low HIV prevalence means fewer stresses on reproductive health budgets and less competition for funding.

Past initiatives have shown that most women want to determine their own family size and that they use family planning when they have access to services and have had educational opportunities themselves. Pakistan’s challenge is to expand access to high quality, voluntary family planning and reproductive health care so that individuals and couples can meet their desires for smaller families, while also improving women’s standing within families and society. That means expanding access to family planning in rural and hard-to-reach urban areas, as well as among the poor, and focusing on eliminating gender disparities.

Although young age structures can exacerbate challenges to development, these profiles are not static. Pakistan’s government should also take heed of the proven and cost-effective family planning and reproductive health policies that can promote greater demographic balance. Meanwhile, donors such as the United States, which have already identified Pakistan as a key strategic ally worthy of intense political cooperation, should ensure that the health and well-being of Pakistan’s people are no less of a priority. Working together, Pakistan’s government and donors can help Pakistani women and men achieve their desired family size by providing consistent support for Pakistan’s efforts to provide voluntary family planning.
 

ISLAMABAD: Mission Director USAID Ms Anne Aarnes on Wednesday assured for increasing assistance to Pakistan in the energy sector to meet the ongoing severe energy crisis.

She expressed these views during a meeting with Deputy Chairman Planning Commission, M Salman Faruqui. It was a preliminary meeting to discuss Pak-US Energy Dialogue, which has not been held for the last two years.

Deputy chairman appraised the delegation of the acute problem of energy shortage currently being faced by the country and emphasised the need of a fast-track power generation programme. He also informed the delegation of government’s plan to introduce mass transit programme that would substantially save energy and ensure easy and economical mode of transportation for the public.

Ms Aarnes said that USAID would focus on empowering Pakistan energy policy and energy efficiency and capacity under the Energy Development Programme. The USAID would assist Pakistan by providing two full time technical experts supported by short- term technical assistance for energy strategy formulation, implementation and support for energy policy dialogue. Technical assistance would also supply targeted feasibility studies in energy resource development, energy efficiency, transactions support and pricing.

The energy efficiency and capacity component of USAID would develop the private sector market for energy efficiency by facilitating firms, conducting public information campaigns on energy efficiency including plans to minimise damage to business from blackouts. Capacity building activities will assist human resource departments in power sector companies to develop and implement coordinated training programmes for staff at all levels.
 

* Agreement on Economic and Technical Co-operation

* Amending Protocol to Free Trade Agreement

* Framework Agreement on Co-operation in Mining

* Memorandum of Understanding (MoU) on Co-operation between the Ministry of Land Resources of China and Ministry of Petroleum and Natural Resources of Pakistan

* Agreement on Environmental Protection

* Framework Agreement for Co-operation in Radio and Television

* Paksat-IR Satellite Procurement Contract

* MoU on Scientific Collaboration in Agricultural Research and Technical Co-operation

* Agreement on Properties Exchange between the Ministry of Foreign Affairs of China and the Ministry of Foreign Affairs of Pakistan

* Co-operation Agreement between Beijing Museum of Natural History and the Museum of Natural History of Pakistan

* MoU on Co-operation between Cricket Association of China and the Pakistan Cricket Board

* MoU on Project of X-Ray Container/Vehicle Inspection System
 

ISLAMABAD: A delegation of MAF Hypermarkets Pakistan (Pvt) Ltd on Wednesday apprised Saleem H Mandviwalla, Chief of Board of Investment (BoI) regarding their investment plans to reduce inflation in the country.

MAF Hypermarkets Pakistan (Pvt) Ltd, a company of MAF Hypermarkets LLC Dubai was led by Daniel Penco, Country Head and accompanied by Mubashir JALILI Vice President Development Pakistan and Shaukat Bhatti, GM Finance.

The delegation informed that MAF Hypermarkets LLC, Dubai is in the process to generate 5,000 direct employment opportunities through ever first retail chain of 10 stores– Hypermarkets within next 5 years in Pakistan, 500 job opportunities for each Store (5,000 jobs for 10 stores) to reduce inflation.

MAF Hypermarkets would help to reduce inflation by discount price policy, which puts pressure on retail prices and supports economic growth, contributes to modernise the manufacturing industry and transfer of retail knowledge. MAF Hypermarket is committed to create and promote export opportunities for international stores from Pakistan.

Majid Al Futtaim Group (MAF) LLC Dubai UAE (Established in 1992) entered into Pakistan and has established a 100 percent owned company, MAF Hypermarkets Pakistan (Pvt) Ltd.

The delegation further informed that the company has started construction of its first hard discount store at Fortress Stadium, Lahore with a loan from parent Company MAF Hypermarkets LLC Dubai of Rs 1.2 billion. The company has already signed up 5 stores so far in Pakistan and has plans to open at least 10 stores at Lahore, Karachi, Islamabad, Multan and Faisalabad in the coming 5 years.

MAF Hypermarkets LLC, Dubai, has authorised capital of Rs 500 million and paid up capital of Rs 300 million at present. It is a franchisee of Carrefour for 15 Middle Eastern countries including Pakistan and Iran. Currently the company has 30 stores operational in 8 different countries and many more to come up.

The BoI authorities assured full support to the group in their endeavour to execute their project in a smooth way.

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Friday, October 17, 2008

BEIJING: A number of heads and chief executives of key Chinese corporate sector called on President Asif Ali Zardari here at the State Guest House on Thursday and exchanged views with focus on augmenting economic cooperation between the two countries.

Prominent Chinese entrepreneurs told President Zardari that they believed that investment climate was hospitable and secure for further investment in the country.

They told the President that they intend to avail of investment opportunities in Pakistan.

Those who met President Zardari included Chief of China National Petroleum Corporation, China Mobile, Huawei Technology and ZTE Electronics.

The delegation led by China National Petroleum Corporation (CNPC) Jian Jiemin assured the President on behalf of CNPC to continue cooperation in trade and seismic activities.

Talking to media, the Director General of CNPC Zhang Xin said that his company was already carrying out large-scale construction in Pakistan.

“Right now CNPC has over 300 employees working in Pakistan and all of them are very safe,” he said.

Zhang said that during the meeting with President Zardari the two sides discussed further cooperation in oil exploration, trade and investment in refining and services sector.

Chairman China Mobile Wang Jianzhou said that this year his company has invested $200 million and plans to expand its project by further investing $600 million.

Wang said that for acquisition of PakTel, China Mobile had paid $400 million and also made further investment of $400 million for improvement of its network.

The chairperson of Huawei Technology Ms. Sun Ya Fang said after meeting with President Zardari that over 1600 local employees were working in her organization in Pakistan. She said that both sides talked on how to make further expansion in telecom sector.

She said that Huawei Pakistan is the number one telecom solution provider and is the only vendor serving all the mainstream telecom operators of the country such as PTCL, Ufone, Mobilink, Telenor, Warid and Zong etc. Chairperson Huawei donated one million dollars for establishment of e-Government project in Pakistan.
 

Friday, October 17, 2008

KARACHI: The bonanza of local car manufacturers has come to a halt with local car sales plunging by 51 per cent in the first quarter of financial year 2008-2009.

According to recent numbers released by Pakistan Automotive Manufacturers Association (PAMA), car sales for the month of September were down 29 per cent at 7,889 units against 11,072 units sold during the same month last year.

However, on month on month basis, the car sales increased by 23 per cent primarily due to notable growth in Corolla sales at 1,280 units, which is 275 percent higher than 341 units sold during August 2008. This impressive sales growth is attributable to the commercial production of new model of Corolla.

On cumulative basis, during 1QFY09, total car sales remained 51 percent lower at 19,066 units as compared to 39,297 units sold during the same period last year.

During the 1QFY08, almost all manufacturers registered a decline in sales units. Among major players, massive drop was witnessed in Indus Motor’s sales units with 64 percent decline at 4,659 units that followed by Pak Suzuki Motors (PSMC), which registered 48 per cent decline in sales volume over the same period of FY08.

Indus Motor suspended its production of Corolla in July-August in order to launch its new model, which resulted in 80 percent decline in the sale of the model.

Owing to the production break, Corolla’s market share during the quarter was shredded by almost 820 bps to 24.4 per cent.

On the other hand, market shares of its prime competitors Honda Cars (HCAR) PSMC improved by 690 bps & 350 bps to 6.9 per cent & 3.5 per cent, respectively.

Cumulative sale volumes of Dewan Motors and HCAR also depicted respective declines of 91 per cent and 19 per cent to 86 units and 3,232 units.

During 1QFY09, in 1300cc segment, HCAR witnessed notable stretch in its market share at 60 per cent as against only 27 percent in the same period last year.

Moreover, in 800cc segment, PSMC’s market share eroded by 830 bps to 65 percent while Indus Motors (INDU) share has increased by the same percentage.

On MoM basis, sales volume of all manufacturers has improved over the last month of prevailing fiscal. Sale units of Dewan motors, Indus Motors, Pak Suzuki, and Honda cars recorded an increase of 193 per cent, 76 per cent, 10 per cent and 5 per cent, respectively. During the month (September 2008), the market share of all manufactures registered a decline with exception of Indus Motors, which recorded an 850 bps increase in its market share.

Kamran Rehmani auto analyst at First Capital stated that a host of factors are attributable to this notable industry wide decline i.e. declining real income of consumers, slowdown in car financing due to high mark-up rates, price hike due to pass-on impact of higher input cost and increase in GST by 100bps.

More interestingly, this is not the domestic phenomenon only as more or less for the same reasons (as mentioned above for local car assembler), auto assemblers all over the world are going through a tough time.

This phenomenon is mainly attributable to change in auto finance policies by the suppliers of funds. As pre-emptive measures amid mortgage crisis, auto financiers have become more fastidious or reluctant of disbursing auto loans.
 

Friday, October 17, 2008

KARACHI: Pakistan may increase production capability of its textile industries by up to 20 per cent with little effort, which will help increase exports of the apparel industry, said Fayyaz Ahmed Riaz, DGM Small and Medium Enterprise Development Authority (SMEDA).

He said that SMEDA has surveyed over 150 textile-related units with Japanese experts and found that there is immense room to enhance their efficiency by 15 to 20 per cent with some effort.

He was speaking at a one-day workshop on ‘Evolving Paradigms in Pakistan’s Garment Industry’, jointly organised by SMEDA, United Nations Development Programme (UNDP), GEN-PROM, gender promotion in garment industry through skills development in Sindh and Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) at the Federation house on Thursday. He said these are critical times for Pakistan’s economy and “demands from us to review our growth strategies with the fast changing world.”

Amit Gugnani, Associate Vice President KSA-Technopak, India said that China, which has a lion’s share in US imports, is under serious problem with the cost of quota, penal duties and rising cost of production in manufacturing. This is prime time for other regional countries like Pakistan, India and Bangladesh to make the most of this opportunity and increase their exports to the US.

While giving his presentation on ‘Global Trade Scenario’ he said, “The changing world has brought various problems along with opportunities like rising cost of production and consumer inflation in regional countries. Like 11.6 per cent consumer inflation in Bangladesh, 14.1 per cent in Vietnam, 5.5 per cent in India, 7.4 per cent in Indonesia, 11.9 per cent in Pakistan and 8.2 per cent in Turkey.

Pakistan should go for value added products as the largest category that is being traded in the world is of sweaters, jerseys and jackets for men and women. It is high time to redefine and improve overall business structures including training of employees, he added.

Azfar Hasan, CEO Matrix Sourcing, in his presentation on ‘Pakistan buying scenario: key opportunities and challenges’ said that Pakistani companies should give due importance to innovation and quality to their products as many a time innovation attracts buyers.
 
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