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MUMBAI: Indian manufacturing activity contracted for the second consecutive month in December to its lowest in more than 3-½ years as the impact of the global slowdown on Asia’s third-largest economy deepened, a survey showed on Friday. The ABN AMRO Bank purchasing managers’ index (PMI), based on a survey of 500 companies, fell to a seasonally adjusted 44.4 in December, falling for the fourth consecutive month to its lowest since the survey began in April 2005 and below November’s 45.8. A reading above 50 signals economic expansion while a figure below 50 suggests contraction. Manufacturing makes up about 16 percent of India’s gross domestic product.
 
By Mubarak Zeb Khan

Friday, 02 Jan, 2009

ISLAMABAD: The government will distribute 400,000 tons of subsidised urea among the farmers in the next couple of weeks for maintaining prices at the current level so as to avoid the impact of fertiliser shortage on agricultural output.

A source in the ministry of industry and production told Dawn on Thursday that six ships carrying urea fertiliser have already reached at Karachi and Gwadar ports, while the remaining ships will arrive soon.

The total urea to be imported stood at 300,000 tons for distribution among farmers at subsidised rate besides local procurement of 350,000 tons from domestic urea producing companies.

According to the source, so far only 100,000 tons of urea from domestic manufacturers has been procured leaving a large quantity of 250,000 still waiting to be procured from the local manufacturers. The payment for the local purchase has also been allocated and the total procurement is expected to be completed by early next February, the source added.

Minister for Industries and Production Mian Manzoor Ahmad Wattoo convened an emergency meeting on the distribution and import of urea here on Thursday. It was also attended by Federal Minister for Food and Agriculture Nazar Mohammad Gondal.

Punjab Agriculture Minister Malik Ahmed Ali Aolak and parliamentary secretary, ministry of industry and production Pir Haider Ali Shah, besides the owners of fertiliser producing companies were also present at the meeting.

An official statement issued after the meeting said that up to January 15, the 300,000 tons imported urea would be transported into the country for distribution among the local farmers.

While for the local procurement of 350,000 tons of urea the National Fertiliser Corporation (NFC) and Utility Stores Corporation (USC) have arranged transportation and warehousing.

Mr Wattoo directed the concerned officials that transportation of urea should be enhanced so that demand of farmers should be met in time. He said black marketing of urea would not be tolerated if anybody found in this game would be penalised.

He directed the chairman NFC and MD Utility Store Corporation to work day and night to ensure supply of urea at the doorsteps of the farmers. He also directed the NFC management to obtain 350,000 tons (50 per cent local urea production) from the local manufacturers up to Jan 15 for which orders and payment be released immediately.

He further said to monitor the entire system of distribution, transportation and import of urea a committee has been formed at the federal level. Additional secretary industries will head the committee with members, including additional secretary agriculture, Punjab and Sindh secretaries of agriculture departments, MD USC and chairman, NFC and the parliamentary secretary.

A tehsil level committee has also been formed to monitor distribution of Urea in tehsils and districts. He described that MNA, MPA, and USC area manager, NFC representatives, local tehsildar and officers of provincial agriculture departments will be members of these tehsil level committees, which will ensure proper distribution of urea among farmers on control prices.

Mr Wattoo said that the provincial governments should also ensure obtaining remaining 50 per cent of urea from the local manufactures for distribution among farmers through private dealers. Stern action would be taken if any dealer found involved in black marketing, he added.
 

Jan. 2 (Bloomberg) -- National Investment Trust, Pakistan’s biggest state-owned investment company, plans to buy stocks through a 20 billion rupee ($250 million) fund to stabilize the market. The Karachi 100 Index posted its first gain in 14 days.

“The fund is ready now and will start activity very soon,” Tariq Iqbal Khan, managing director of National Investment, also Pakistan’s biggest investor, said in a phone interview today. “Our responsibility is to protect our investors’ interest first, and as consequence, it is expected to support the market.”

The fund will invest in eight stocks including Oil & Gas Development Co., Pakistan’s biggest exploration company, Pakistan State Oil Ltd., the largest fuel supplier, and Pakistan Petroleum Ltd., the No. 1 gas producer.

Pakistan’s stocks fell for 13 days after the exchange lifted the trading limit last month that had prevented the key index from falling below its Aug. 27 level. The index has slumped 36 percent since the restriction was removed. The measure gained 1.5 percent today.

National Bank of Pakistan, the country’s biggest lender by assets, Employees Old‑Age Benefits Institution and State Life Corp. of Pakistan are among investors of the fund.

The so-called State Enterprise Fund may also invest in Sui Northern Gas Co. and Sui Southern Gas Co., the country’s two- largest gas distributors, Kot Addu Power Co., Pakistan’s biggest non-state electricity producer, Pakistan Telecommunication Co., the nation’s main fixed-line operator, as well as National Bank.

Pakistan’s newspapers including the Daily Times and the Business Recorder reported the story earlier, citing Khan at a press conference yesterday.
 
PTA opposes ECC’s decision to export live animals
By Razi Syed

KARACHI: Pakistan Tanners Association (PTA) has strongly opposed on Friday the decision of Economic Coordination Committee (ECC) to allow export of live animals.

Talking to Daily Times, the chairman PTA, Agha Saiddain, said, “the decision has been taken without any consultation with the stakeholders— meat, leather and woollen industry.”

He said ECC’s decision is based on the recommendations of the Ministry of Livestock and Dairy Development (MLDD) and the Ministry of Food, Agriculture and Livestock (MINFAL).

Pakistan is a protein deficient nation and per capita consumption of meat and beef is very low due to higher prices. The government has allowed export of live animals to earn Rs 500 per animal without considering that they already get much higher amount if meat and beef is exported instead of live animals.

The export of leather increased by 21 percent during the year 2007-08. The major source of raw material of our leather industry is indigenous hides and skins. Now with this decision the export of leather is also expected to decline. He said the export of live animals from Pakistan would have serious set back for tanning, footwear, leather garments and gloves industry. This would also affect our woollen and carpet industry.

Saiddain informed that industry is already operating at 55 percent capacity due to shortage of hides, skins and tanners. “We have recommended the government to discourage export of wet blue leather from Pakistan as being done by India, Iran, Bangladesh and China,” he added.

The tanning industry alone provides jobs to more than one million people— directly and indirectly.

He said the prices of beef and meat, which are already out of reach of low-income group, would increase further making it a rare commodity for the consumers.

“The decision of ECC will leave many workers of woollen, carpet and leather industry unemployed.”

He further demanded that modern slaughterhouses should be set up in the country to encourage export of beef and meet rather than selling our live animals. “This decision will have similar consequences as the decision to export wheat had on the economy during 2007-08.”
Source
 

KARACHI (January 03, 2009): Advisor to PM on Finance Shaukat Tarin said Saturday that the country has met all the targets set by International Monetary Fund (IMF).

He was talking to media after holding meeting with the management of Pak-Oman Investment Company Ltd at FTC building. He said that the government borrowing was restricted to Rs 242 billion during the year which is below the target of Rs 258 billion.

"Our borrowings are below the target. We are meeting all the targets of IMF and I have no worries about it", he added.

Responding to a question, the Advisor said the government will consider lowering discount rates when core inflation starts coming down. The current rate of inflation is 24 percent in the country while the core inflation was hovering at 18.9 percent, he added and hoped that core inflation will come down soon.

Talking of oil prices, he said that the government has lowered petrol prices by Rs 30 per litre or more than 40 percent since international oil prices have started slipping.

"We have reduced petrol price from Rs 87 to about Rs 57 a litre On the contrary, our neighbour India has reduced petrol price by only Rs 5 per litre", he opined.

Tarin said that the government will fully pass on the reduction in oil prices at a suitable time. Presently, we cannot fully pass on the benefit of oil price cut keeping in view the situation on the borders and pressure on the revenue collection, he noted.

Replying to a question about the meeting at Pak-Oman Investment Ltd, he said that it was in connection to have a review of financial sector in the country specially state-owned entities.

The government had invested billions of rupees in these organisations and we want to see whether the private sector is benefitted with this money or not. What is the return and what are the benefits, he maintained.

"I am hopeful that this review will bring in improvement in the performance of financial sector", he observed.

To another question, the Advisor said that the inflow of foreign direct investment (FDI) in the first five months of current fiscal is up by at least 1 to 2 percent over last year's (2007-08) figure of $ 1.7 billion.

Referring to steps for strengthening the capital market, he pointed out that energy, telecom and banking sectors were going strong and investment inflow will increase in the country.

Tarin said that Treasury Stock Ordinance will be promulgated in next two days to allow public sector corporate sector to buy their own shares at low prices and sell them when they are up.

At the same time we have provided a soft lending in stock market to provide sufficient funding. This will certainly support the market, he added.

To a question about the privatisation of Qadirpur gas field, he said the Prime Minister Yousuf Raza Gilani has already made it clear on the floor it will be done after due consultation.

He said that only 10 to 15 percent employees of Pakistan Steel Mills will be privatized.

Tarin said that he will also meet private sector people to get their input on the economy and also about their problems. We will also solve their problems, he added.

Responding to a question about the Friends of Pakistan, he said that time was right to have a meeting with them because the United States was in a transition period. Let the new government take over in USA. Meanwhile we are holding individual meetings with member countries. I am going to Saudi Arabia to hold meeting with its finance minister, he pointed out.

Earlier, CEO Pak-Oman Investment Company Ltd Zafar Iqbal briefed the Advisor on the performance of the investment company.
 

ISLAMABAD (January 03, 2009): As a result of immediate decisions taken by the President Asif Ali Zardari and the Prime Minister, Syed Yousuf Raza Gilani, overall power situation has improved on Saturday by 1000 MW at peak, reducing the power deficit.

Further improvement is expected in next two days when full supply of oil is restored to the Independent Power Producers (IPPs) and WAPDA's Generation Companies (GENCOs), the spokesman of Ministry of Water and Power said on Saturday.

According to him, the overall impact of these measures will result in stabilization of power supply and substantial reduction in the announced schedule of load shedding.

He said that the Minister for Water and Power Raja Pervez Ashraf is monitoring the power situation and on his direction the ministry's offices and related major field offices of Pakistan Electric Power Company (PEPCO) and power distribution companies (DISCOs) will remain open on Sunday.
 
^^ I don't believe a word. If we were to believe the media, the situation has only deteriorated to an extent that riots are taking place in broad daylight.

Faisalabad bursts into protest against load shedding of power, gas

Updated at: 1340 PST, Saturday, January 03, 2009
FAISALABAD: The citizens here loosing their tempers have burst into fierce protest against continued load shedding of electricity and gas.

The angry demonstrators went on torching tyres, pelting stones on the police vehicles, rampaged Wapda office and torched one vehicle besides one motorcycle, while the police resorted to baton charge, which let loose a reign of terror in the town. Large crowds of vexed citizens at different vintage points of the town angrily demonstrating do not seem to be getting under control by the contingents of police, who appeared outnumbered by the people making a beeline for demonstration.

Numerous trade and businessmen organizations besides the labour unions have also joined in the people’s protests, which suddenly has intensified and overtaken the whole town sending the routine life paralyzed.

No large-scale arrests reported although police detained some persons, while scores of people on either sides reported to have sustained injuries.

Source: http://thenews.jang.com.pk/updates.asp?id=63958
 
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Only time will tell...lets see if they reduce the amount of loadshedding in major cities. Faisalabad is an industrial hub severely hit by power crisis, there will be more protests...but it doesn't mean that governement isn't doing anything to solve the crisis. :coffee:
 

FAISALABAD (January 04 2009): Complete shutter down was observed in industrial area and all shopping centres on Saturday against unscheduled prolonged load shedding and new high prices of gas and its non-availability. All shopping centres and markets at Satiana Road, Susan Road, Eight Bazars, around Clock Tower, and Circular Road remained closed.

The local Yarn Market, Cloth Market, Timber Market and Hosiery Units, Paint manufacturers and powerloom units also suspended their business. Not a single procession was taken out nor any protest meeting was held because of Muharram. However, a number of small processions in Ghulam Muhammadabad, Jhang Road and Millat Road were taken out, but the precisionists dispersed before the arrival of the police.

In many parts of the city, the factory workers split in groups. They burnt tyres on roads, disrupting vehicular traffic for a while. On Millat Road, a group of workers tried to damage a bank, but firing in the air by the bank guard, forced them to dispersed. However, in Gulistan Colony, the angry mob forcibly entered the Fesco offices and set the office record on fire.

Before dispersing, they set three motorcycles and one car on fire. At some other places, the police resorted to lathicharge, teargas shelling and firing in the air to disperse the mob and reportedly hauled up over 60 workers.

Meanwhile, Chairman of Pakistan Yarn Merchants Association Muhammad Asghar Gandhi and Vice-Chairman of All-Pakistan Small Units Powerlooms Association Mehmood Alam Jatt told newsmen that due to severe load shedding of power and gas in Faisalabad, a large number of industrial units had either been completely closed or operating partially, thus rendering thousands of workers jobless. They demanded of the government to take immediate steps for restoration of power and gas to the industrial units, especially to the export-oriented Units to save them from total collapse.
 

ISLAMABAD (January 04 2009): Pakistan will receive a $900 million loan from World Bank to carry out different development projects by the end of current financial year. Sources revealed to the Business Recorder that World Bank will extend $500 million to Pakistan under "Poverty Reduction Support Credit," which has a pragmatic approach, ie a series of credit with timing linked to annual budget cycle, in the current quarter and an additional $400 million for different development projects in the last quarter of the current financial year.

Pakistan will get budgetary support of $500 million from China during the second week of the current month. Sources noted that the said amount would help ease pressure on the balance of payment. Support from China and the World Bank is seen as an outcome of the International Monetary Fund's 7.6 billion dollars stand by arrangement agreed last month.

Sources said that Economic Affairs Division Secretary Farrukh Qayyum would leave for a two-day visit to China on Sunday (today) to finalise the modalities of the support with the Chinese authorities. Pakistan has also requested the Chinese government to provide assistance for the construction of Diamer Basha dam and nuclear power plants Chashma 111-1V.

The EAD Secretary will also hold technical discussions on the financing programme for different development projects with Chinese authorities. The government has also submitted a feasibility study of Basha dam, estimated to generate 4500 MW electricity per day, conducted by German firm Lehmar Company to the Chinese in order to facilitate them to evaluate the volume of lending required. Lehmar has indicated a cost of over $8 billion for the construction of Basha dam.

Pakistan is set to establish two more nuclear power plants, Chashma 3-4, with the generating capacity of 640 MW, costing Rs 137.3 billion that can be completed in 8 years.

The government has estimated the cost of each project at Rs 68.6 billion in the Public Sector Development Programme (PSDP) 2008-09. Pakistan and China will finalise the modalities of the deal by January 15. President Asif Ali Zardari had requested nuclear power plants during his visit to China and received a favourable response. After President Zardari's visit, the concerned authorities of the two countries began work on maturing the deal.
 

ISLAMABAD (January 04 2009): Prime Minister Syed Yousuf Raza Gilani on Saturday requested Iran to extend oil facility on deferred payment to Pakistan for one year. The Prime Minister made this request during a meeting with Iranian Petroleum Minister and special envoy to President Gholamhossein Nowzari, who called on him here.

Gilani also hoped that Iran would set up power plants in Pakistan to help overcome the present severe electricity shortage in the country. Iran has agreed to provide 50,000 barrel crude oil daily to Pakistan for 90 days on deferred payment during advisor to Prime Minister on Petroleum Dr Asim Hussain's recent visit to Iran. The advisor had also requested Iranian President to extend the facility for a period of two years instead of 90 days.

Gilani expressed his satisfaction that the two brotherly countries had made progress on the prospects of signing the gas pipeline and supply of electricity from Iran to Pakistan agreements.

The Prime Minister said that Pakistan strongly condemned the Israeli aggression against Palestinians in Gaza and is deeply concerned at the continuity of unbridled atrocities of Israel despite international calls for restraint. Pakistan had always stood by their Palestinian brothers and hence is desirous of complete unity among their ranks, he added.

He said that Pakistan has consistently and unequivocally offered unreserved support to the Palestinian cause and supports the establishment of an independent state of Palestine with Al-Quds Sharif as its capital.

The Prime Minister said that the world should shun its double standard by ignoring Israeli atrocities and act resolutely to stop its aggression against the innocent Palestinian in Gaza. He hoped that the executive committee of the OIC, meeting in Jeddah, would come up with a constructive and consensus decision in this regard in line with the sentiments all over the Muslim world. He lauded Iranian President Mahmoud Ahmedinejad's role in defusing the tensions between India and Pakistan in the wake of Mumbai blasts.

The Iranian Minister for Petroleum stated that Pakistan was a very important Islamic country and hence should assume a leading role in OIC for the resolution of the present Gaza crisis. He said Iran was mustering support of the Muslim world in this regard and needed Pakistan's assistance for taking a united stance of the Muslim Ummah on the Palestinian issue.

Underscoring the critical situation in Gaza, he said that role of Muslim countries at this juncture would be recorded by the history. They should, therefore, forget their petty differences for countering the Israeli aggression.

He termed Pakistan as his second home, saying that he considered Pakistan's difficulties as Iran's difficulties and Pakistan's progress as Iran's progress. He agreed with the Prime Minister that there is an urgent need for finalisation of gas pipeline project between the two countries.

He promised to convey Pakistan's request for extension in the period of deferred payment of oil facility to the Iranian government. He was also of the opinion that bilateral trade between the two countries needed to be enhanced and called for both sides to take concerted efforts to achieve the goal.
 

ISLAMABAD (January 04 2009): There will be no more unannounced power load-shedding across the country from Saturday night, Spokesman of Pakistan Electric Power Company (Pepco) Tahir Basharat Cheema assured on Saturday. Talking to a private TV channel, he said the company has made scheduled load management as its top priority on the directives of President Asif Ali Zardari.
 

LAHORE: Chairman Federal Task Force on Information & Communication Technologies (ICT) Salim Ghauri said on Monday that Pakistan IT industry possesses the potential of benefiting from the unavoidable challenges being faced by neighbouring countries in 2009.

He said the IT companies in neighbouring countries have grown out of proportion and the sustainability in growth is becoming a Herculean task there with every passing day. They have no option but to cut current expenditures heavily that would affect their business ventures, he added.

Also, said Salim Ghauri, in an emergency situation in 2009, the Western IT managers would be looking for new vendors and new places to outsource their projects, as the new vendors are always keen to provide better services at much lower cost with quality assurance. We had witnessed this trend back in the 2001 when IT industry crash and we should be ready for it ahead in 2009, he added. He said it is important for the Pakistan IT industry to move quickly in early 2009 and get its share of business from across the globe.

"We have always been complaining about Pakistan's image abroad while terming it a major hurdle in getting business from the outside world but the time has come to put such approach aside, as this is a reality which will continue to stay with us for near future," he said. "We will have to face the reality and dig opportunities out of the adverse circumstances to sustain the recession hit economies of the world." According to him, the year 2009 will also demand a change in attitude from the IT professionals from carefree and "take it easy man" style to a more professional approach. Now only the fittest will survive, he warned and added that in the same breath that there will be room for people to join IT industry but this year will require longer hours and more hard work from the professionals to sustain and survive.

"The financial packages will in fact decrease rather than increase. Little increments in salaries will be offered, which have been inflating in previous years, as the IT industry will either have to cut the workforce or offer decreased packages," he said, and added that the IT professionals should settle for smaller packages then losing a job.

So far as setting up a new IT business in 2009 is concerned, Ghauri said there's always opportunity for new entrepreneurs as they come up with new ideas and creativity. Many IT companies started their businesses in early 90s and wrote success stories in the years to come, simply because they relied upon innovative ideas and approaches, he added.

According to him, the IT industry will be the most important segment of Pakistan's economy and it will earn precious foreign exchange for the country in the years to come. He stressed the education institutions to be more focused in their curriculum and lectures to discuss ongoing global changes in world economies and its impact on IT industry. The industry will be cutting costs throughout 2009, but it will be working on better software simultaneously that will open new windows of opportunity for young professionals, he said.

Ghauri also urged the government to revisit tax policy towards the IT sector, as the tax holiday for IT sector is expiring in 2011 and any failure in extending it for another 10 years would cripple the industry from generating hundreds and thousands of jobs in the years to come. We have already seen that a good number of IT companies had shifted their businesses from tax-burdened regimes to tax free regimes in the past. The government of Pakistan needs to move fast on this front, he asserted.
 

ISLAMABAD (January 04 2009): Owing to one-forth decline in Urea fertiliser prices, the government withdrew its request to seek credit facility of $400 million for Urea import from Saudi Arabia, official sources said here on Saturday. "The request for the credit facility was made when the Urea prices were very high, however, as the prices came down in the international market, the government opted to buy fertilisers from the open market," the sources told APP.

The sources contradicted the news that appeared in a section of press claiming that Saudi Arabia has refused to grant $400 million credit facility to Pakistan. "The Saudi government has not refused extending an additional US $400 million to Pakistan for the purchase of urea on deferred payments", sources added. They said that Pakistan was in need of importing fertilisers of $400 million, however the urea prices declined and the same quantity value reduced to $90 to 100 million, leading the government to withdrew the credit request.
 

Punjab Chief Minister Mian Shahbaz Sharif has said that negotiations are in progress with China and France for generation of energy from solid waste, and that a solid waste energy project would soon be started at Faisalabad. This is indeed a good news for our mismanaged and cash-strapped energy sector. Such projects should in fact be started in all the provinces to ease the growing energy crunch.

Municipal solid waste has come to be increasingly employed as a handy raw material for producing inexpensive power, and many advanced countries of the world are currently engaged in developing new techniques and technologies to tap this rich source of energy.

Municipal solid waste or MSW includes trash or garbage produced by households, commercial establishments, industries and institutions, which would ensure its abundant availability. The waste consists of everyday items such as discarded packing material, furniture, clothing, plastic bottles, food scraps, newspapers etc. It is managed through a combination of disposal in landfill sites, recycling as well as incineration processes.

Scientists believe that the most environmentally sound management of MSW can be achieved through the use of three-tier process involving source reduction, recycling and disposal in landfills or waste combustors, in which the burning of waste converts water into steam, which drives turbines connected to power generators.

The pre-combustion process varies from facility to facility, though it generally involves shredding of solid waste and removal of metals etc. The shredded MSW is then used as fuel in the same manner as at mass burn plants. MSW is categorised as a renewable source of energy because it is abundant, and contains significant amounts of biomass.

It has been estimated that the burning of MSW can generate energy while reducing the volume of waste by up to 90 percent, which represents an additional environmental benefit. As MSW contains different waste materials, with some of them benign and others highly toxic, meticulous separation of the two is of critical importance.

Effective environmental management of MSW plants aims at excluding toxic from MSW-fuel and to control emissions of air pollutants from waste-to-energy (WTE) plants. Secondly, the burning of WTE plants produces comparatively high carbon dioxide emissions. However, the impact of these emissions is reduced because a major part of the trash is wood, paper or food waste, which would decompose anyway, if not burned.

If left to decompose in a solid waste landfill, the material produces methane, a toxic gas. As far as the quantum of air pollution is concerned, the on-site land use impacts are generally equal to those of coal or oil-fired plants. Incineration converts municipal solid waste into incinerator bottom ash, particles and heat, which can in turn be used to generate power.

Pelletization of municipal waste, an important pre-incarceration process, involves segregation, crushing, mixing high and low heat volume organic waste material, and solidifying it to produce fuel pellets. The process is essentially a method that condenses waste or changes its physical form and enriches its organic content through removal of inorganic materials and moisture.

According to one estimate, on an average about 15-20 tons of fuel pellets can be produced after treatment of 100 tons of raw garbage. Since pelletization enriches the organic content of the waste through removal of inorganic materials and moisture, it can be a very effective method for preparing enriched fuel.

We have discussed here the broad outlines of some of the MSW management techniques employed in advanced countries of the world for producing inexpensive energy. There is a need for the government to generate public awareness that solid waste can be used as an inexpensive source of energy.

We propose that the scope of talks being held with China and France should be enlarged to include all the provinces. After success of the project, energy obtained from MSW can be made a part of the overall national energy mix. Power co-generation is another option, along with numerous other alternative energy sources, which the government must expeditiously tap to keep the widening gap between power supply and demand within manageable limits.

While all these diverse methodologies need to be employed to ensure energy security in the country, long-term benefit to the country can only come from tapping our immense hydropower and coal energy potential. (It is said that the share of coal in the US energy mix is as high as 50 percent.) The government should simultaneously undertake fast-track implementation of water and power projects to rid the economy of the crippling power shortages.
 
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