Pakistan Economy - News & Updates - Archive

[fatman17]

USDA Attache: Pakistan's 2007-08 Rice Exports Surge

Editor: Sharon Li

6 Nov 2008

Unfettered by government intervention or an export ban, Pakistan rice exports surged in MY 2007/08 to an estimated at 4.2 million metric tons, positioning Pakistan to overtake the United States as the world's third largest exporter of rice, according to a U.S. Department of Agriculture attache report posted Wednesday on the Foreign Agricultural Services Web site.

Access to last season's strong international prices encouraged farmers to move additional planting area to rice, and as a result, MY2008/09 rice production is estimated to reach a record 6.3 million tons.

In light of this year's bumper crop and the softening of international prices, the Government of Pakistan has announced its intention to purchase one million tons of domestic paddy in an effort to support local prices. The trade is wary of any government intervention in this highly successful, private-sector led market and has responded cautiously to the government's rice procurement scheme.

RICE Production

Based on Government of Pakistan (GOP) data, Post's estimate of MY 2006/07 rice production was increased (5 percent) to 5.45 million metric tons (MMT), the MY 2007/08 production estimate was increased (4 percent) to 5.7 MMT, and the MY 2008/09 estimate increased by (12.5 percent) to a record 6.3 MMT. An expansion in area planted to rice coupled with timely rains and reduced pest activity contributed to this year's record crop production level.

In response to this year's bumper crop and the tempering of international prices, the GOP has announced a procurement scheme to purchase one million tons of domestic paddy in an effort to support prices received by farmers. The state owned organization Pakistan Agricultural Services and Storage Corporation (PASSCO) will purchase the paddy at a support price of PKR 700 per 40 Kg (USD 219/MT: 1USD=Rs 80) for coarse varieties. A paddy support price for "Super Basmati" was announced on October 30, 2008 at PKR 1,500 per 40 Kg (USD 468/MT) and a paddy price for Basmati 385/2000 of PKR 1,250 per 40 Kg (USD 390/MT). The Rice Exporters Association of Pakistan (REAP) has expressed concern about the government's decision to intervene in this highly successful, private-sector led market.

Consumption

Strong international demand and prices, coupled with the government's establishment of a minimum export price (MEP) contributed to a steep increase in 2008 domestic rice prices. In September 2008, retail rice prices were about 60 percent higher than last year's prices. As a result, Pakistan rice consumption in MY 2007/08 is estimated at 2.0 MMT, down about 18 percent from the previous year. Consumption is expected to rebound somewhat (10 percent) in MY 2008/09 and is estimated at 2.2 MMT.

Trade

In response to high international prices Pakistan rice exports surged in MY 2007/08 to an estimated 4.2 MMT, positioning Pakistan as the world's third largest rice exporter. Traders estimate that this year's rice export earnings could top out at more than $2 billion, likely making Pakistan the world's second largest rice exporter on a value basis. Rice exports are projected to remain strong in MY 2008/09 and are estimated at 4.0 MMT.

Stocks

Due to higher exports, MY 2007/08 ending stocks are projected to decline and are estimated at 200,000 metric tons. In response to this year's record crop production and the taming of international rice prices, stocks are expected to recover in MY 2008/09 and are estimated at 300 TMT. Here-to-fore, stocks have been held in relatively small lots by the private sector. It is unclear at this point; however, how the government's new procurement scheme will affect the country's stock situation in the coming year.

http://www.news.alibaba.com

 

[Neo]

Friends ask Islamabad to first move ​

IMF to qualify for assistance​

Sunday, November 09, 2008

ISLAMABAD: Friends of Pakistan including Saudi Arabia have asked Islamabad in plain words to first formally move International Monetary Fund some time during November 10-15 to qualify for their formal financial commitments, said a senior official at Ministry of Finance.

Pakistan after exhausting its endeavour to get maximum relief from Saudi Arabia, has also decided to formally move the International Monetary Fund seeking 500 per cent of its quota that stands at $1.5 billion to bail out its ailing economy, a senior government official told The News.

Earlier the top leadership of the country had decided to formally place the request with IMF after the Friends of Pakistan’s meeting that is to be held in Dubai on November 17, but in the new scenario particularly after the visit of President Asif Ali Zardari to Saudi Arabia, the government has made up its mind to formally move the IMF sometime between November 10 to November 15 to avoid any default-like situation, as net foreign reserves of State Bank of Pakistan have reduced to $3.4 billion as on November 4.

It is pertinent to mention the IMF executive board meeting is to start on November 10 and Pakistan cannot afford to lose opportunity of seeking IMF’s loan.

According to the sources, during the recent one-on-one meeting between President of Pakistan and King of Saudi Arabia, the Kingdom promised the six month oil facility on deferred payment which would be announced in the Friends of Pakistan’s meeting.

“However, according to some informal communications with Friends of Pakistan so far made, the message has been given to Pakistan that Islamabad should first formally move the IMF, then they would come up with formal commitments in the meeting scheduled for November 17 in Dubai,” the official said.

Pakistan ailing economy, with fast dwindling net foreign reserves of State bank of Pakistan that have reduced to $3.4 billion as on November 4, is left with no option but to receive the IMF’s soft terms loan.

The official said as on November 4, the foreign reserves stood at $6.7 billion out of which State Bank of Pakistan possessed $4.199 billion including CRR (cash reserve requirement) deposits amounting to $729.6 million, while the commercial banks had $3.2 billion. “If the CRR deposits are excluded, the net foreign reserves that State bank of Pakistan has, stand at $3.4 billion.”

 

[Neo]

Pakistan to raise tax target to Rs1.36 trillion ​

Sunday, November 09, 2008

ISLAMABAD: The International Monetary Fund (IMF) and Pakistani authorities have agreed to jack up annual tax collection target by Rs110 billion from Rs1.250 trillion to Rs1.360 trillion for 2008-09 by initiating effective audit to find tax dodgers and improving its management, it is learnt. Pakistan is likely to get a bailout package worth $7.4 to $9.6 billion for the next 21 months by next week after approval of the Board of Directors of the Fund.

Pakistan will get front loaded programme after formally approaching the IMF as its first installment is expected to be around $4 billion, which will be released soon after approval of its board.

On expenditure side, defence expenditure will be slashed as depreciation of the rupee against the dollar has negatively impacted overall defence budget.

“The depreciation of rupee has resulted in a growing bill on account of foreign purchases by 30 per cent but the government will not increase its envisaged allocation for the current fiscal year,” said a senior official involved in recent Pak-IMF talks while talking to The News here on Saturday.

“The major cut on expenditure side will be made on development budget which will be reduced substantially,” said the official and added that the development budget would be slashed down by Rs100 billion.

The basic purpose of IMF is to reduce the fiscal deficit by bringing it down from 7.4 per cent of the GDP in the last fiscal year to curtail hovering around in the range of 4 per cent of the GDP for the current fiscal year.

When the official was asked about logic being presented by the IMF for increasing tax revenues, he said tax target is fixed on the basis of nominal growth by calculating value addition in various sectors of the national economy and existing inflation.

The nominal growth is likely to remain in the range of 26 per cent to 27 per cent for the current fiscal year.

“The FBR’s tax target of Rs1,250 billion was fixed on the basis of 18 per cent nominal growth by estimating growth at 5.5 per cent and inflation at 12 per cent. But now the nominal growth is estimated to go up so there is opportunity for collecting additional Rs110 billion in 2008-09,” said the official.

To another query regarding any taxation measures within the ongoing fiscal year for collecting additional Rs110 billion, the official said the issue of imposition of agriculture income tax and bringing services sector into the tax net was discussed.

“But these steps required time to materialize it,” the official said and added that the provinces as well as feudal lobby would oppose any move to move ahead with the desired objectives. It will be an achievement to finalize a mechanism in the next four to five years for collecting income tax on agriculture income.

“The Central Excise Duty (CED) on certain services will be an option,” said the official but added that there was no need to take new measures for collecting additional Rs110 billion in order to jack up the annual target up to Rs1.360 trillion.

 

[Neo]

Gem Bazaar in Peshawar ​

Sunday, November 09, 2008

KARACHI: Pakistan Gems and Jewellery Development Company (PGJDC) is organising a Gem Bazaar at its newly-built Gem Exchange at Khayal Arcade Namak Mandi, Peshawar from Friday.

The bazaar would be inaugurated by Vice Chancellor University of Peshawar, Professor Dr Azmat Hayat Khan. This is the third of its kind, which will provide a lucrative opportunity and platform for those interested in buying and selling gemstones and mineral specimen.

A variety of gemstones and mineral specimen will be displayed under one roof where interested buyers will have maximum exposure to a wide range of quality display. PGJDC CEO Fawad H Khan said that the event would be organised in a professional manner, which would ensure high security in trading.

“This will be an ongoing feature, which will contribute immensely to continuous efforts that PGJDC is putting in for development of gems and jewellery industry.” He said “such initiatives by the company will boost confidence, motivation and trust in PGJDC’s initiatives for the development of the industry. It will further enhance the value chain productivity of the sector.

 

[Neo]

Ecnec approves $400m ​

Sindh Cities Improvement Programme​

Sunday, November 09, 2008

ISLAMABAD: The Executive Committee of the National Economic Council (Ecnec) has approved the Sindh Cities Improvement Programme worth US $ 400 million.

Of the total expenditure, the Asian Development Bank would provide $ 300 million whereas the Sindh government would afford $100 million, said a Planning Commission press release issued here on Saturday.

The project is aimed at improving the urban infrastructure and services, environment, public health and creating economic opportunities for the people of the province through an integrated programme of reforms and investments.

The project will provide clean drinking water in areas where its availability is inadequate and develop sanitation facilities to improve environmental health in Sukkur, New Sukkur, Larkana, Khairpur, Shikarpur and Rohri.

The project will be completed in 10 years.

The Ecnec also approved the conversion of the Mirpurkhas-to-Khokhropar meter gauge section into broad gauge and extension up to the Indian border.

This is a revised project that envisages conversion of 135 km long existing meter gauge railway track into a broad-gauge track from Mirpurkhas to Khokhropar.

The link connects the existing Karachi-Hyderabad-Mirpurkhas track with the Indian railways network.

Ecnec also approved the Japanese-assisted rural road construction project phase-II.

The total cost of the project is Rs 5,114 million. Out of which, the Japan Bank International Cooperation will provide a loan of Rs 4,729 million whereas the Sindh government will afford Rs 385 million.

Under the project, 500 km of rural roads in various districts of the province will be constructed in five years.

The project is aimed at supporting rural transformation and agricultural development, reducing the transport cost and facilitating efficient movement of goods and people.

The Ecnec also approved a project for training and support of the Levies forces in Fata. The total cost of the project is Rs 558.89 million. Out of which, the US grant includes Rs 546 million whereas Rs 12.89 million is the local component.

The project envisages provision of essential infrastructure to law-enforcement agencies in areas of strategic significance.

The Ecnec also approved a project worth Rs 657 million for the promotion of primary education in Fata.

With the assistance of the World Food Programme, low-literacy rate will be addressed and participation rate at primary level will be improved in the Mohmand Agency and Landi Kotal Tehsil of the Khyber Agency.

The Ecnec has directed the National Highway Authority (NHA) to construct roads and bridges through public-private partnership.

Besides, it approved construction of a new bridge over the Sutlej River at Emanwala near Multan. The bridge will connect Multan with N-5.

The council further approved construction of a bridge over the Chenab River at Head Muhammad Wala, Multan. The total amended cost of the project would be Rs 2,376.8 million and it would be completed within three years.

Rehabilitation of the Larkana-Moen-Jo-Daro Road at a cost of Rs 1,931.1 million was also approved.

Further, New Mineral Survey Scheme (NMSS) will be launched. The cost of the scheme is estimated at Rs 1,085.39 million, including a foreign exchange component of Rs 486.01 million. The projected is being sponsored by the Pakistan Atomic Energy Commission for the exploration of nuclear mineral resources.

Development projects worth Rs 15 billion were also approved for Azad Jammu and Kashmir.

The Ecnec also approved the Rawalakot City Development project worth Rs 8 billion. Out of which, Rs 4 billion would be provided by the Saudi government in the form of soft loan.

The council also approved setting up of the Pak-China Friendship Centre in Islamabad at a cost of Rs 2,519 million.

 

[Neo]

Pakistan, Japan to hold talks on FTA & SEZs​

TOKYO: A 10-member Joint Study Group (JSG) of Pakistan and Japan comprising prominent business community will hold talks here from Monday for promotion of trade and investment opportunities between the two countries, said a senior official at Pakistan Mission. Last year, the JSG has been established by the Government of Pakistan and Japan, said Economic Minister at Pakistan Mission Iftikhar Babar while talking to APP. The JSG includes prominent businessmen drawn from chambers of commerce and industries of both the countries and had been assigned the task to examine and submit recommendations on rapid industrialisation, enhance trade and investment.

 

[Neo]

Money laundering scam worth $10bn ​

Khanani and Kalia arrested​

* Three other partners also held
* Nine NADRA officials arrested for making fake ID cards​

By Faraz Khan

KARACHI: Munaf Kalia and Javed Khanani, partners in top moneychanger firm Khanani and Kalia International, were arrested on Friday on charges of illegal transfer of about $10 billion out of Pakistan.

The Karachi and Lahore wings of the Federal Investigation Agency’s (FIA) Crime Circle also arrested three other partners in the company – Saleem, Yousuf Kalia and Anees Rajput – after the federal government ordered a crackdown against illegal transfer of foreign currency also known as Hundi and Hawala.

At least nine officials of the National Database and Registration Authority (NADRA) were also arrested from various offices including those in Kemari, Lyari, Awami Markaz and the DHA on charges of making fake identity cards.

An FIA official told Daily Times that the team raided the office of Khanani and Kalia International on II Chundrigar Road at around 9pm on Friday. They arrested Javed Khanani, a director of the firm, and seized computers, records and cash.

Raids were then made for Munaf Kalia’s arrest, the official said, and a warning was conveyed to him that his family would be held if he did not surrender. Munaf Kalia turned himself in later on Friday, and the FIA official said he was being questioned.

He said the government had sealed offices of the company all over the country and stationed FIA staff outside them.

The government has also formed four teams to make more arrests. Officials denied reports that several suspects had been put on the exit control list.

FIA Director General Tariq Pervez told Dawn News the agency had been monitoring Khanani and Kalia for two months and its franchise in Gujranwala had a special counter for Hawala transfers.

According to an APP report, FIA Director Zubair Mehmood told a delegation of moneychangers that records of Dunya Exchange in Gujranwala showed illegal transactions of ‘billions of rupees’ through Khanani and Kalia, and that the record in the Karachi office provided evidence.

He said that the State Bank, being a licence-issuing authority, had a right to take action against moneychangers involved in illegal transfers. Saturday’s arrests were made after significant evidence was found, he said, adding, “Innocent moneychangers will not be harassed.”

Malik Bostan, representative of the Forex Association of Pakistan, said the association would turn in anyone found involved in illegal transfers. “The FAP collects $7 billion foreign exchange annually and gives it to the government. If we are targeted and harassed, this money will not be received,” he said.

 

[Neo]

Foreign investment of $15,574 withdrawn equity market ​

KARACHI (November 09 2008): An outflow of $15,574 of foreign investment was witnessed the country's equity market during the outgoing week ended November 07, 2008. According to the National Clearing Company of Pakistan Limited (NCCPL) data, the cumulative figure of this mode of financing stood at negative $337.778 million in the current calendar year January 01, 2008 to November 07, 2008.

"The foreign investors opted to offload their holdings during the week on their concerns over the prevailing economic situation and uncertainty on removal of floor mechanism", analysts said. The week started on a positive note as an inflow of $182,643 was witnessed on Monday, however, this trend could not continue as the foreign investors withdrew $29,312 on Tuesday.

The negative trend continued as an outflow of $252,913 was recorded on Wednesday and the offshore investors withdrew $201,288 on Thursday. A positive trend was witnessed on the last day of the week as an inflow of $284,175 was seen on Friday.

 

[Neo]

Ecnec approves 11 projects​

ISLAMABAD (November 09 2008): The Executive Committee of the National Economic Council (Ecnec) has approved eleven projects in infrastructure, education, energy, security and rural uplift sectors in its meeting held recently, sources told Business Recorder on Saturday. It has given go-ahead for setting up of Pak-China Friendship Centre, costing Rs 2519 million as a gesture to cement the deep-rooted Sino-Pak ties.

A Chinese company has started construction of the centre and Rs 287 million were spent on purchase of land and preliminary works. The centre will include hall, exhibition centre, multipurpose hall, hostel and a library. Basically, the project is being undertaken to promote tourism through projection of culture.

It will also provide opportunities for income generation along-with promoting Pakistani culture through institutional arrangements. Development projects for Sindh: The Ecnec also gave go-ahead for Phase-II of Japanese-assisted rural road construction project under which 500 km rural roads in various districts of Sindh will be constructed 2008 to 2013.

The project will cost Rs 5114 million, of which Japan Bank International Co-operation (JBIC) will provide a loan of Rs 4729 million, whereas Sindh government will spend Rs 385 million. This project is continuation of an agreement between Pakistan and JBIC for construction of 3000 km rural roads in Pakistan.

The project will provide better access to market and alleviate poverty to improve socio economic condition of the poor people. It will also help reduce unemployment and under employment in the rural areas.

SINDH CITIES IMPROVEMENT PROGRAMME: To improve urban infrastructures for creating better economic opportunities in Sindh through reforms and investment, promoting services delivery system, costing $400 million, of which ADB will provide $300 million, whereas Sindh government will share $100 million.

The project will provide clean drinking water supply in areas where availability is inadequate and develop sanitation facilities to improve environmental health through increased investment in water supply and sanitation sub-sector in six secondary cities of Sukkur, New Sukkur, Larkana, Khairpur, Shikarpur and Rohri. It will be completed in 10 years and about 4 million people will benefit.

Similarly, Ecnec has approved revised projects for conversion of 135 km long existing metre gauge railway track into broad gauge track Mirpur Khas to Khokhropar. The link connects the existing Karachi-Hyderabad-Mirpur Khas with Indian railways network. The cost of the project will be Rs 1860.17 million.

PROJECTS FOR FATA/NWFP: The meeting also approved project for training and support of Levy forces in FATA at a cost of Rs 558.89 million, out of which US grant is Rs 546 million, whereas Rs 12.89 million is the local component. The project envisages provision of essential infrastructure to station the law enforcement agencies (Khassadars, Levies and FC) at strategic location at the junctions of FR Kohat, FR Peshawar and Khyber Agency to have integrated and co-ordinated force.

PRIMARY EDUCATION IN FATA: The Ecnec approved another project costing Rs 657.00 million for promotion of primary education, with the assistance of World Food Programme in Mohmand Agency and Landi Kotal tehsil of Khyber Agency in FATA.

Under this project, flour, vegetable oil and biscuits will be provided as incentive for parents to send their children for schooling. The donor agencies, especially World Food Programme is assisting Pakistan to achieve Millennium Development Goals (MDGs), universal primary education, implementation of Saarc action plan and reduction of gender gap.

KARAKORAM INTERNATIONAL UNIVERSITY, GILGIT: The meeting also approved establishment of Karakoram International University, Gilgit worth Rs 449.792 million. Presently, the university has no proper campus and it will be constructed in Gilgit to enhance the access of the people of the Northern Areas to higher education. The project will be funded through Federal PSDP.

NEW MINERAL SERVICE SCHEME: A scheme sponsored by Pakistan Atomic Energy Commission (PAEC) for exploration of minerals has also been approved by the Ecnec. The estimated cost of the project is Rs 1085.395 million, including foreign exchange component of Rs 486.018 million.

The project aims at establishment of additional Reasonable Assured Reserves (RAR) of uranium and other nuclear minerals to meet nuclear fuel requirements of the country to generate electricity. Under this project, detailed geological mapping, drilling, test-mining operations and collection of samples and their testing etc would be carried out. It would help in establishing techno-economic parameters of various mineral deposits in the country.

The survey will cover twenty (20) major geological rock formations located in Punjab, Balochistan, NWFP, FANA and FATA. It will be completed in five years (2008-13). Bagh City Development Project, AJK: For reconstruction and rehabilitation of earthquake damaged infrastructure the Ecnec has given approval of Bagh City Development project, costing Rs 7.00 billion as part of Erra's Urban Development Programme. The project will be implemented in 10 years in two phases.

Similarly, the Ecnec also approved Rawalakot City Development project worth Rs 8 billion, of which Saudi government will give 4.00 billion in the form of soft loan. The umbrella project includes 48 infrastructure development schemes seismic safety.

NHA TO CONSTRUCT ROADS/BRIDGES THROUGH PUBLIC-PRIVATE PARTNERSHIP: The Ecnec has approved construction of a 2-lane, 600 metres long bridge across the river Sutlej at Emanwala near Multan, worth Rs 1147.77 to be completed in 22 months.

The bridge will connect Multan with N-5 through the existing provincial road through Jalalpur Pirwala and Uch, whereas it will be maintained through toll tax. Similarly, the Ecnec approved construction of high level bridge over Chenab River Head Muhammad Wala, district Multan, at a cost of Rs 2376.8 million, to be completed in 3 years (2008-11).

DUALISATION/REHABILITATION OF THE LARKANA - MOEN-JO-DARO ROAD: The project has also been approved with a cost of Rs 1931.1 million to be completed in 22 months. The project includes upgradation of existing 2-lane road through 4-lane, including reconstruction of 8 bridges. The road connects Larkana city with Moenjodaro Airport.

NHA will execute the above-mentioned project and the project will be funded through federal/NHA PSDP subject to federalisation, otherwise 50:50 cost sharing will be done by federal and provincial government. IPDF will explore private sector investment for the project.

 

[DarkStar]

Gem Bazaar in Peshawar ​

Sunday, November 09, 2008

KARACHI: Pakistan Gems and Jewellery Development Company (PGJDC) is organising a Gem Bazaar at its newly-built Gem Exchange at Khayal Arcade Namak Mandi, Peshawar from Friday.

The bazaar would be inaugurated by Vice Chancellor University of Peshawar, Professor Dr Azmat Hayat Khan. This is the third of its kind, which will provide a lucrative opportunity and platform for those interested in buying and selling gemstones and mineral specimen.

A variety of gemstones and mineral specimen will be displayed under one roof where interested buyers will have maximum exposure to a wide range of quality display. PGJDC CEO Fawad H Khan said that the event would be organised in a professional manner, which would ensure high security in trading.

“This will be an ongoing feature, which will contribute immensely to continuous efforts that PGJDC is putting in for development of gems and jewellery industry.” He said “such initiatives by the company will boost confidence, motivation and trust in PGJDC’s initiatives for the development of the industry. It will further enhance the value chain productivity of the sector.

WAs there last year, absolutely useless exhibition. Hardly any buyers, mostly some touristic minded diplomats. Most of the stuff there was low grade, not befitting an international exhibition, considering Pakistan has some of the worlds finest mineral and gem specimens.

But the organisers were able to get a huge grant from Parvez musharraf a couple of years ago, along with the Agha Khan. So it was a gravy train for the organisers, I guess.

 

[Neo]

Veteran banker at helm of Pakistan’s economy ​

Tarin...No-nonsense banker​

KARACHI: Shaukat Tarin, Pakistan’s top economic official, is known as a hard-headed straight-talker who loves a challenge.

Which is good because the veteran banker might just be up against his career’s biggest — steering Pakistan out of its most dire economic straits in years.

A balance of payments crisis has left the central bank with foreign reserves of $3.53bn, less than September’s import bill of $3.81bn, and there is concern that without help, the country could default on a bond maturing early next year.

Analysts say it’s almost inevitable the government will, however reluctantly, have to agree to an IMF programme.

Tarin was appointed the prime minister’s top adviser on economic affairs last month, shortly after he turned 55. IMF negotiators are likely to find him a tough nut.

Tarin joined Citibank as a trainee in 1975, after graduating with a master’s degree in business from Punjab University, Pakistan’s oldest, where he majored in finance.

He rose to take charge of several banks and also served as chairman of the Karachi Stock Exchange before joining the government as de facto finance minister. He can’t be appointed a cabinet minister as he is not a member of parliament.

Although Tarin has shunned politics throughout his career, Muneer Kamal, a colleague at Citibank, said he wasn’t surprised to see his old friend join the government.

“Most people would run away from the sheer weight of responsibility but Shaukat’s not that type,” said Kamal. “If he feels it’s a challenging job and he can do something positive, he won’t be shy.”

A stocky man with a moustache, Tarin once told the New York Times he was most proud of building up the business at Citibank, where he also worked in the Gulf and Thailand.

“Citibank was where I learned all about banking and my experiences there laid the foundations for my career,” he told the newspaper in an interview.
At the request of the government, he took over as chairman and president of Pakistan’s largest bank, Habib Bank, in 1997, turning it around from a $230mn loss in 1996 to a profit of $30mn in 1998.

He had similar success at Union Bank, which he took over in 2000, making it one of Pakistan’s top banks in five years and preparing for its sale to Standard Chartered Bank.

Old colleagues speak of a no-nonsense style and attention to detail.
“He’s a very aggressive person and he means what he says ... he’s very blunt,” said one banker who worked under Tarin at Saudi Pak Commercial Bank.

“He has a deep understanding of finance and with numbers he’s excellent. It’s almost as if he has a photographic memory,” said the banker, who declined to be identified.

Despite the gruff manner, colleagues say Tarin has always been fiercely loyal to staff, and they to him, and has always been able to attract top talent to work with him.

Another old friend and colleague said Tarin’s political masters would be wise to leave him alone to get on with the job.

“He has the ability and the capability to deliver provided he’s given a free hand. Otherwise he’ll simply get frustrated and resign one day ... He does not ever succumb to pressure.”

Tarin was born in the eastern city of Multan, where his father, Jamshed Ahmed Tarin, was an army doctor. The elder Tarin has no fears for his son in the tough negotiations he faces.

“He’s honest and an honest man is always a little braver. If you have some credibility then you can negotiate with anybody,” he said.
An occasional golfer, Tarin is married with three children. – Reuters

 

[Neo]

IMF conditions not hard: Tarin​

ISLAMABAD, Nov 9: As the countdown begins for Pakistan to formally request the International Monetary Fund for a bailout package of up to $5 billion, Adviser to the Prime Minister on Finance Shaukat Tarin has said the fund’s conditions will not be tough.

“The IMF’s conditions are not hard. All it wants is that

Pakistan should fulfil the promises it makes prior to getting the financial assistance,” he told newsmen in Mardan after visiting the residence of former NWFP governor Fazl-e-Haq to attend the Chehlum of his brother Pir Fazal Hussain.

Mr Tarin said that Pakistan would provide details of all its projects to the IMF board because the government knew better which areas needed funding.

He said the rupee was heading towards stabilisation and it would gain more value in coming days.

About the arrest of the chief of the country’s largest foreign exchange company on charges of illegal transfer of billions of US dollars abroad, Mr Tarin said the government was taking necessary steps to stop the flight of capital and curb money laundering at a time when the country was facing balance of payments problem.

Pakistan’s foreign exchange reserves have fallen from $16.5 billion in October last year to $6.75 billion this month.

Mr Tarin said that prices of various items would decline in the next six months and give a breathing space to the government and people.

Overall, he said, the economy would soon start improving.

He said the government was focussing on agriculture to increase production of major crops, including wheat, which would help improve the condition of farmers.

Answering a question, the adviser said the “Friends of Pakistan”, particularly Saudi Arabia and China, were ready to help Pakistan and provide support in different ways. Saudi Arabia, he said, could help by providing oil on deferred payment.

President Asif Ali Zardari visited China and Saudi Arabia with the hope of getting assistance in cash as well as technical support to avoid IMF’s non-concessional loans.

However, so far China or Saudi Arabia has not come forward with cash on the table. Pakistan can now wait till Nov 15 to avoid the IMF.

Pakistan immediately needs around $5 billion to keep the economy afloat. The loan from the IMF will be under the standby arrangement, carrying higher interest rate than the Poverty Reduction and Growth Facility Programme.

 

[muse]

“The IMF’s conditions are not hard. All it wants is that Pakistan should fulfil the promises it makes prior to getting the financial assistance,”

Incredible! What does it say about what financial community's both public and private institutions thinking about what kind of debtor Pakistan are?

What does it say about what has been "hard" for Pakistan to do?

What do "populist" politicians find hard to do? other than be honest and serve the public interest

Why have so many Pakistani and other investors pulled out money from Pakistan?

 

[Neo]

Incredible! What does it say about what financial community's both public and private institutions thinking about what kind of debtor Pakistan are?

What does it say about what has been "hard" for Pakistan to do?

What do "populist" politicians find hard to do? other than be honest and serve the public interest

Why have so many Pakistani and other investors pulled out money from Pakistan?

Valid questions!

 

[Neo]

Managing natural resource at the district level​

THE devolution plan has not been able to fully meet the aspirations of the people as envisaged, particularly in the provision of basic amenities to the masses, and the environment sector remains most neglected.

In a report, the Punjab Planning and Development Department has revealed that most of the district governments being in the nascent stage do not include environment high on their agenda. The major urban cities of Punjab are confronted with environmental hazards such as noise pollution, air pollution, drinking water contamination and waste water problems. The situation is no different in other big cities.

The report further points out that constraints are due to lack of competent staff. At present the Environment Protection Agency (EPAs), Punjab, has a staff of some 270 persons. Among them only 22 are inspectors who are responsible for around 50,000 industrial units in the province. Efforts to train staff have been undermined by a vicious circle of low motivation, under-funding and poor results, with trained workers leaving to find jobs elsewhere. Resources are short: computers have been purchased, but are not being used productively, and records are still kept in brown paper files, obviating rapid and targeted analysis, the report points out.

The provincial EPAs are confined to provincial capitals except in Punjab where devolution has taken place in various districts. The Punjab EPA has a weak relationship with the EPA at the federal level. It is primarily a provincial entity rather than being a branch of the EPA at the provincial levels.

The report says major urban cities of Punjab suffer from water contaminated with bacteria and arsenic poison. Unplanned industrialisation of urban centres has turned rivers into dumping ground of industrial waste. The devolution plan envisaged the creation of separate environment department headed by a district officer in each district. This has resulted in two problems: it perpetuates the segregation of renewable natural resource management from the rest of economic development activities and overlaps with the jurisdiction of several other departments including agriculture and education.

However, the devolution plan has not been implemented in true spirit in all provinces. In Sindh, environment has not been devolved, where degradation of environment and natural resources is more severe.

Environment and renewable natural resource portfolio should have been integrated into all sectoral interventions and projects. For any initiative to be implemented, environment and local level renewable natural resource management would have been factored into concept, design, project formulation, financing approval and implementation and monitoring.

It would have been more realistic, if the district co-ordination officer would have been given overall responsibility of environmental issues. As this position is better placed for aggregating at the district level--- all land use plans and environmental management plans developed by or in consultation with the citizen community boards. To some extent, in NWFP, this kind of mechanism has been devised.

As a matter of fact, distribution of the district financial resources among various sectors is of serious concern. In this context, environment and its related sectors are always at a disadvantage. This is because local politicians are more interested in infrastructure interventions rather than addressing chronic and potentially more serious problems such as solid waste management, sanitation, forest depletion, loss of biodiversity, degradation of grazing lands and loss of agriculture productivity through soil erosion etc.

The district nazims are tenure specific, hence they are more interested in short-term interventions and are unable to see bigger picture. They do not like long-term strategic interventions. Though, it is mandatory under the plan that the district nazim would give development vision.

Management of environment and natural resources has been seriously constrained by the apparent apathy on the part of many local communities to resource management concerns. This impression of disinterest arises precisely because there is no governance mechanism that allows local management. Since, people are not organised at the local level; there is no mechanism for collective analysis of local problems and hardly any attempt to solve them.

While individuals in communities are fully cognizant of degradation and depletion of natural resources, they are powerless to do any thing about them because management authority either lies with the federal or provincial authorities. Almost every community is committed to wise management of natural resources, but they get no official recognition and are, therefore, not in a position to make lasting impact. The devolution plan provided an opportunity to remedy that situation but it was not availed.