What's new

Pakistan Economy - News & Updates - Archive

Status
Not open for further replies.

ISLAMABAD: The US ambassador, Anne Patterson Friday said the US government had earmarked $30 million in technical assistance projects for Pakistan starting from next year. The US envoy expressed these views during a meeting with Federal Minister for Planning and Development, Makhdoom Shahabuddin.

She said the bilateral relation between Pakistan and the US would be further improved while both the leaders discussed Pak-US relations including economic cooperation, situation in the region and other issues of mutual interest. The minister apprised the ambassador about the policies being framed and the projects undertaken by the government to achieve socio-economic progress and prosperity. About counter-terrorism, he said that ‘terrorism is our foremost concern,’ and root causes must be identified and addressed in order to eradicate terrorism.
 

KARACHI: Pakistan's current account deficit narrowed in the six months from July-December to $6.053 billion, compared to $7.269 billion in the same period last year, the central bank said on Friday. Analysts said it was mainly due to the decrease in international oil prices. Oil was trading at $36 a barrel on Friday compared to a record high of $147 in July last year. Analysts said this would ease pressure on the central bank to raise the discount rate in the near term. A six-month monetary policy meeting is due to be announced on January 31, the central bank said on Friday. The consumer price index in December was down 0.50 percent from November. The index, a key indicator of inflation, rose to 23.4 percent in December from previous levels, and was down from a 24.68 percent year-on-year rise in November.
 
UAE walks out of $5 billion Coastal Refinery project
Monday, January 19, 2009
By Khalid Mustafa

ISLAMABAD: The United Arab Emirates (UAE) government has backed out of an agreement to install a $5 billion Coastal Refinery at Khalifa Point near Hub in Balochistan.

While walking out of the agreement on the project, with the capacity to refine 250,000 barrels of crude oil a day, the UAE has linked the establishment of the giant plant to taking charge of the country’s strategic asset of Parco (Pak-Arab Refinery Company), a senior official confided to The News on Sunday.

An accord on implementation of the Khalifa Coastal Refinery Project had been signed at the Prime Minister House in Islamabad on November 13, 2007. The UAE minister of energy, senior officials from the International Petroleum Investment Company (IPIC), Ministry of Petroleum and Natural Resources and Parco had attended the signing ceremony.

Abandonment of the project has obviously shocked the government, which enjoys robust and cordial relations with the UAE. The development, which took place some three months back, is apparently a knee-jerk reaction to Pakistan’s refusal to hand over Parco to the UAE and offer more shares to the IPIC (International Petroleum Investment Company).

Pakistan has 60 percent equity and the UAE 30 percent in PARCO — located in Mehmood Kot area of Multan. The $886 million country’s largest refinery, capable of purifying 100,000 barrels of oil a day, was commissioned well within its budget and a month ahead of schedule in September 2000. The White Oil Pipeline transports imported oil from Port Qasim to the Pak-Arab Refinery.

The official disclosed the UAE government had sought management and charge of the most strategic asset of the country while evincing keen interest in purchasing more shares of the company. But Pakistan refused to do so. Following the refusal, crude oil prices hit new highs some three months back.

Pakistan’s negative response annoyed the UAE leadership, which later communicated to the government that it would not initiate setting up the $5 billion refinery at Khalifa Point near Hub.

It is pertinent to recall the Abu Dhabi government-owned International Petroleum Investment Company had announced on January 10, 2009 that it had delayed plans to set up a refinery in Pakistan and was reviewing its Fujairah refinery project. The CEO of IPIC told newsmen its board had approved last year plans to build in Pakistan a $5 billion refinery with capacity of refining 250,000 barrels of oil per day (bpd).

Without elaborating, the CEO had said: “We are facing problems in Pakistan. For any decision on the Khalifa Point refinery, both the governments need to sit together to take action. We are delaying the project till we sort out the fundamental issues.”

An investigation by The News of the fundamental issues that triggered differences between the two governments revealed the UAE wanted to grab Parco, threatening to pull out of the refinery at Khalifa Point.

Aware of the project’s importance and keeping in view the annoyance of the UAE government, a high-powered Pakistani delegation, headed by Adviser to Prime Minister on Petroleum Dr Asim Hussain, dashed to Abu Dhabi on Sunday to persuade the UAE government not to abandon the plan just because of a dispute over Parco handover. The three-member team includes Additional Secretary GA Sabri and new acting MD of Parco Feroz.

Asked if the UAE government had tied the establishment of refinery to taking full charge of Parco, Secretary Petroleum Mehmood Saleem Mehmood kept mum. But another official said on condition of anonymity that the IPIC had also demanded an extension for Parco Managing Director Mohammad Rasheed Jung.

The PPP government is learnt to have denied a three-year extension to Jung, who has already been given two extensions, each of three years, after his retirement. “Now he has been replaced with a dedicated and nationalist official to ensure the country’s interests in Parco.”

In response to a question, the official said Jung was no more MD, as the government appointed Dr Asim Hussain, Adviser to the Prime Minister on Petroleum, as Parco chairman on Saturday — a day before the team left for Abu Dhabi to negotiate the issue.

UAE walks out of $5 billion Coastal Refinery project
 
^^^^^^^^ UAE is jealous of Gwadar Port because Gwadar is supposed to be biger and more successful than Dubai because of its strategic location.
 
The reason is very simple.......China purchases most of her crude oil from Abu dhabi and it takes atleast 14 to 21 days to deliver in one of their far east posts.

I could not find the article which I had but according to that article this was one of the strategic reasons for China plans to invest around 50bln dollars in order to improve the infrastructure at Gwader port in next 10 years.

As mentioned earlier they buy most of their crude oil from abu dhabi where they also have a storage facility.

Previous Pakistani Government offered China a unique proposal as why not to have a storage faicility in Gwader and whenever they are in need it can be transported to them via KKH within 24 hrs.(Thats why both the countries are investing more than 300 mln dollars in convertibg KKH in double raod).

Imagine from Abu dhabi to Gwader 7 days plus one more day via haulage(by road) altogether 8 days at the max as compared to 21 days.

See the startegic advantages. Thats wgy uncle sheikh is angry with us.
 
Buying rice at higher than market price: investigation to be initiated against TCP
MUSHTAQ GHUMMAN

ISLAMABAD (January 17 2009): The government is reportedly initiating an investigation against the Trading Corporation of Pakistan (TCP) for procuring rice at above the market price, sources told Business Recorder. They said that the Economic Co-ordination Committee (ECC) of the Cabinet had directed the TCP to procure500,000 tons processed rice, made up of 300,000 tons non-basmati rice (Irri-6 & KS-282), and 200,000 tons Super Basmati rice, on the basis of open tenders.

It had also been directed to float tenders immediately, on December 6, 2008, for purchase of 20,000 tons Irri and 100,000 tons Super Basmati rice. Tenders for the remaining 200,000 tons were to be floated, by TCP, on the subsequent, written, advice of Ministry of Food and Agriculture.

Sources said that TCP was reported to have procured both varieties of rice from the market, as Reap had refused to give the price. The ECC was apprised on December 30 about a meeting presided over by Prime Minister Yousaf Raza Gilani regarding procurement of rice by TCP as a price support initiative.

IN THE MEETING, FOLLOWING DECISIONS WERE TAKEN:

(i) TCP will vacate its storage godowns at Pipri , Karachi which have a storage facility of 0.5 million to 0.6 million tons by the second week of December 2008, to make space for stocking rice, which it would procure from the open market;

(ii) TCP will, on availability of sufficient stocks, find export markets for this rice, and do so in a transparent manner through international tenders;

(iii) Minfal will set up a committee comprising its own experts to inspect the rice to be purchased by TCP, and certify its quality. Only then will TCP allow such purchased rice to be stored in its godowns.

Sources said that a committee, headed by Minister for Food and Agriculture, had been constituted to supervise the process of export of rice stocked by TCP. They said that TCP had been directed not to offload any rice into the local market or into the international market till written advice was received from the Ministry of Food and Agriculture.

When the Commerce Ministry sought ex post facto approval of the Prime Minister's decisions from the ECC headed by Finance Advisor Shaukat Tarin on December 30, 2008, some ECC members were reported to have pointed out that in the recent past, due to scarcity of fertiliser, rice crop was also partly affected.

It was suggested that the support price of rice should be fixed before harvesting stage so that the small farmers should reap benefit. In case the support price was fixed after harvesting it would benefit the middleman only.

In this regard it was suggested that a task force under the chairmanship of Minister for Food and Agriculture and Ministers for Industries & Production and Privatisation, Deputy Chairman Planning Commission, Secretary Finance as its members be constituted and Secretary Food and Agriculture will act as its Secretary.

The task force would develop coherent strategy on four major crops ie wheat, cotton, rice and sugarcane, evolve a rational support price mechanism for the aforesaid crops and recommend measures to ensure need based availability of the items throughout the year with equitable benefit to the small farmers and consumers.

I thought TCP has been dismantled as this organization is full of crooks and corruption. This rice trading in Pakistan is full of corruption imagine even if you are making just 5 paisas per kilo how much the money these crooks would be making in purchasing thousands of tons, that is what the game is all about, this is not the end alongwith the rice they also trade in jute or polly propalene bags which are being used as the rice packing materials.:pakistan:
 

Tuesday, January 20, 2009

ISLAMABAD: A document of the finance ministry reveals that Pakistan will have to generate around $2.8 billion or Rs219 billion through loans from donors as well as mobilising additional domestic revenue resources in the next three years (2008-09 to 2010-11) for achieving its envisaged MDG targets related to education, health, clean drinking water and sanitation.

According to the finalised Poverty Reduction Strategy Paper (PRSP-II) released by the Finance Division in which cost of Millennium Development Goals (MDGs) was incorporated with the help of UNDP consultants, the PRSP allocation for education stands at Rs167.251 billion compared to the MDGs cost of Rs247.910 billion, indicating a financing gap of Rs80.659 billion for 2008-09.

The proposed PRSP allocation for education would be Rs251.632 billion for 2009-2010 compared to MDGs requirement of Rs291.043 billion, pointing out the financing gap of Rs39 billion.

The PRSP allocation for education would be at Rs359.611 billion for 2010-11 against MDGs cost of Rs341.308 billion, showing a surplus amount in terms of allocating resources for education. According to the PRSP-II document, the country has allocated Rs67.084bn for health in fiscal year 2008-09 against MDGs cost of Rs86.323bn, indicating a gap of Rs19bn.

The PRSP allocation for health would be at Rs93.126 billion for 2009-10 against MDGs cost requirement of Rs101.084 billion. The PRSP allocation would be Rs122.996 billion for health in 2010-11 against MDGs cost of Rs118.352 billion. For water and sanitation, the PRSP allocation stands at Rs21.197 billion against Rs52.323 billion in 2008-09.

The PRSP allocation for 2009-2010 for water and sanitation would be Rs25.905 billion against Rs56.823 billion. The allocation for water and sanitation would be Rs30.120bn in terms of PRSP while the MDGs cost would be standing at Rs63.122bn for 2010-11.

The grand PRSP allocation for education during 2007-08 to 2010-11 would be Rs778.494bn compared to MDGs costing requirement of Rs880.261bn. The PRSP allocation for health during 2007-08 to 2010-11 would be Rs283.206bn against MDGs requirement of Rs305.759bn.

The PRSP allocation for water and sanitation during 2007-08 to 2010-11 would be Rs77.222 billion against Rs172.628 billion.

According to the PRSP-II document, gaps for each activity have been reported for the entire country. Whereas the PRSP projected expenditures show a sharp increase in the health and education expenditure as a percentage of GDP, the expenditure on water supply and sanitation as percentage of GDP reflects a steadily increasing trend. In view of the fact that most of the diseases in Pakistan are waterborne, the expenditure on water and sanitation must be increased substantially. Therefore, readjustment targets over time, user charges especially in case of water and sanitation as per past practice (but keeping in view the proportion of usage by the poor), and the surge in share of expenditure on water and sanitation as done in the case of education and health will be required. Total allocations for the three sectors during the PRSP-II period reflect a gap of Rs219.4bn.
 

Tuesday, January 20, 2009

LAHORE: The federal government has fixed a wheat procurement target of 6.5 million tonnes for the current year, expecting a good crop following an aggressive wheat sowing campaign across the country.

The News has learnt that for the first time the federal government has assigned a wheat procurement target of 300,000 tonnes to NWFP and 200,000 tonnes to Balochistan. It has directed Punjab to procure 3.5 million tonnes while Pakistan Agricultural Storage and Supplies Corporation (PASSCO) would procure 1.5 million tonnes and Sindh one million tonnes.

The targets were assigned in a meeting held at Islamabad. The meeting was chaired by Federal Minister for Food and Agriculture Nazar Muhammad Gondal and attended by representatives of the four provinces, Ministry of Food, Agriculture and Livestock (MINFAL) and finance ministry.

The meeting discussed methods of wheat procurement at the price announced by the government before crop cultivation. Prime Minister Yousuf Raza Gilani had announced a procurement price of Rs950 per 40 kg for the next season.

Following the announcement of the attractive price which is now almost equal to the regional wheat price, the farmers cultivated more wheat sparking hopes of a bumper crop this year. The government has fixed a target of 25 million tonnes for wheat production this year.

The meeting also asked the finance ministry to prepare a plan to ensure availability of financial resources at the time of procurement. It also asked PASSCO official to prepare a wheat procurement plan including funds needed for the drive. It was decided that the government would continue buying the commodity from farmers till the last grains from fields were lifted.

The meeting noted that necessary arrangements for wheat procurement were crucial as if the government failed to buy from the farmers at the prescribed rate, it would negatively affect production in future. It was also pointed out that if government agencies succeeded in procuring wheat at Rs950 per 40 kg, the country would not face food security problems like those it encountered during the last few years and spent huge foreign exchange on wheat import.

The meeting participants were of the view that wheat procurement at the set price would also open a window for export of the commodity in coming years when surplus stocks would be available.

Recently, rice farmers suffered a lot as the government failed to ensure the commodity’s purchase at the set price. If the same mistake is repeated in the case of wheat procurement, its production would be affected. The government always has figures from all districts and it can easily devise a plan to purchase every grain.
 

Tuesday, January 20, 2009

KARACHI: The Board of Investment (BoI) is going to introduce ‘electronic visas’ for the world business community and it is also working on the issue of providing visas upon their arrival.

Minister of State for Investment and Chairman BoI, Saleem H Mandviwalla announced this at the first annual dinner of the Swiss Business Council (SBC) held the other day at the Consulate General of Switzerland. The SBC was formed in May 2008.

He said that the issuance of electronic visa or visa on arrival would be done to address the chronic complaints of the world business community and to promote foreign investment in the country.

“Foreign companies have been complaining since a long time that their visitors face problems in obtaining visas and also in getting visas on arrival,” he added. Mandviwalla said that the Board of Investment was about to come up with ‘BoI Cards’ for investors and businessmen. These cards will offer various privileges like preferential treatment at all international airports in the country, access to BoI lounges and many more.

The BoI is also going to establish a special desk at every airport with an aim to facilitate all businessmen and each one of them will receive VIP treatment there. Obtaining a visa on arrival would be very simple at places such as the Dubai airport. Under the process, visitors would receive visas on their arrival, proceed to the immigration desk and get it stamped, he explained.

The minister also pointed out that the BoI has also met a 20-year-old demand of issuing business visas from Karachi to the visitors of foreign and multinational companies (MNCs) recently.

Regretting the massive energy crisis inherited from the previous government, which he described as a hindrance in the way of attracting foreign investment up to the mark, the minister invited Swiss experts on the subject to tackle this menace. “Switzerland produces 56 per cent of its electricity from hydroelectric stations,” he underlined.

Besides, he assured resolving a six-year-old pricing issue of pharmaceutical companies in the next two months; announced to establish special economic zones with 10-year holidays, and five-years for industries in these zones all over the country; and said Pakistan was still offering a handsome return with a likely 4-4.5 per cent GDP growth against negative growth in some Western countries.
 

Members concerned over price hike, urge relief to masses​

Wednesday, January 21, 2009

ISLAMABAD: Adviser to the Prime Minister and Chairperson of the Higher Education Commission Begum Shehnaz Wazir Ali informed the National Assembly on Tuesday that the government had suspended the establishment of nine engineering universities due to financial constraints.

Responding to a point raised by Abdul Qadar Khanzada of the MQM during discussion on price hike, she said the plan to set up the universities was made in a hurry and nobody considered its financial impact on the national economy as each university, if established, would cost Rs 45 billion.

The opposition members, while taking part in the discussion, criticised the government for failing to control the price hike. The parliamentarians also condemned unannounced increase in the prices of commodities at the Utility Stores.

During discussion, Abdul Qadar Khanzada, while referring to the education sector, looked dissatisfied with the qualification of certain members of the cabinet committee constituted to keep a watch on the affairs of universities and improve facilities in the higher education sector.

Shehnaz Wazir Ali said the prime minister, under a decision of the cabinet, had constituted a cabinet committee that consisted of highly educated persons to review the programme for setting up these universities besides improvement of education standard.

She said all members of the committee, including Deputy Chairman Planning Commission, were highly qualified. Shahnaz Wazir Ali said she herself had two Masters degrees and a diploma from the Harvard University.

She said the government did not want to utilise the national exchequer on merely grandiose education schemes. She said instead of spending huge amount on these universities, the government had decided to strengthen the existing universities and degree-awarding institutions in the country to improve the education standard.

She said keeping in view the difficult financial position, the government intended to concentrate on upgrading and improvement of higher educational institutions, as it wanted to spend each penny on public welfare.

Earlier, the members participating in the discussion urged the government to take visible steps to overcome the price hike so that people could get essential commodities at reasonable rates.

Those who spoke included Abdul Qadir Patel, Khushbakht Shujaat, Rana Tanwir Hussain, Akram Masih Gill and Abdul Qadar Khanzada. Abdul Qadar Patel of the PPP called upon the cabinet members to take serious steps and adopt a strategy to control the price hike of essential commodities and provide relief to the masses.

Khushbakht Shujaat and Abdul Qadar Khanzada of the MQM criticised the performance of the Utility Stores, saying not only the prices of various items had been increased but quality of commodities was also poor.

Khushbakht Shujaat said the price hike had broken the back of poor masses, saying the parliamentarians should give suggestions and proposals to bring down the soaring prices. She said that merit was the only solution to all problems. “We should also look into the fact whether those appointed at responsible places are selected on merit or not,” she said.

Khanzada criticised the government for raising the support price of wheat to Rs 950 per 40 kilogram. Responding to the point of Khanzada Khan, Minister for Agriculture Nazar Muhammad Gondal informed the house that the government had increased the wheat support price with an objective to enhancing productivity besides increasing the income of small growers. He said this increase would benefit small growers who were 96% percent of the agriculture community.

Minority member Akram Masih said minimum wage of Rs 6,000 for workers was not sufficient to meet the expenses of a person who was the head of a family. Rana Tanvir said the prices of commodities at the Utility Stores had been increased without announcement of any policy by the government.

Meanwhile, Minister for Religious Affairs Hamid Saeed Kazmi informed the house that the Saudi Arabian government had been requested to enhance the Haj quota for Pakistan to accommodate the maximum number of people. He said various complaints had been received against the Haj operators and assured the House that after proper investigations, action would be taken against those found guilty.

The minister said that due to demolition of buildings around the Masjid-al-Haram, the Haj pilgrims, especially the aged, faced serious difficulties, including the transport problem. He said the Saudi government had also assured that it would remove difficulties regarding the provision of transport to the Haj pilgrims in Makkah next year.

Minister for Commerce Makhdoom Amin Fahim informed the House that the country was expecting a bumper rice crop this year that would definitely result in reduction in its prices. Responding to a call attention notice regarding procurement of rice at high rates by the Trading Corporation, he said the government was making concerted efforts to enhance the agricultural yield, particularly food items, to provide relief to the common man.

Regarding the high rates of rice, he informed the House that a committee had been formed to probe the matter and promised that appropriate action would be taken against those found guilty in this regard.
 

Wednesday, January 21, 2009

ISLAMABAD: The federal government has allocated a sum of Rs 11 billion for providing basic amenities to various areas of Balochistan, provincial Communication Minister Mir Sadiq Umrani said on Tuesday.

Talking to a TV channel, he said the federal government had also agreed to pay Rs 15 billion loan to Balochistan as during the last era, an overdraft of Rs 22 billion was taken. He said this would help end the sense of deprivation among the people of Balochistan. The cases against Sardar Akhtar Mengal and Nawab Khair Bukhsh Marri have already been withdrawn. Scores of people incarcerated during the Musharraf-led government have also been released from Balochistan jails, he said. He said 50 per cent share of income from all mega projects, including SANDAK, Mirani dam, Gwadar Port, Hubco Power Plant, Uch Power Plant, etc must be given to the Balochistan government.

The amount would be used to provide basic amenities to the people of Balochistan, he added.Terming Gwadar the gateway to the Central Asia, he said 11 ships, loaded with fertiliser, anchored at the Gwadar Port in only one week. As many as 700 trucks are moving daily to transport goods from the Gwadar Port to their destinations, he added
 

KARACHI: Subscriber growth of cellular phone companies witnessed a sharp decline in the first half of current fiscal year 2008-09 compared with the corresponding period of previous fiscal.

This is an indication of saturation in the cellular phone market, as despite offering different attractive packages the operators have failed to attract customers.

The latest data released by Pakistan Telecom Authority (PTA) revealed that cellular firms have added only 0.581 million connections on their network during 1HFY09 against a growth of 11.2 million in 1HFY08.

The number of subscribers has reached 89.9 million by end of half fiscal year whereas it was 89.3 million at the beginning of the fiscal year in July 2008.

In the last two months, cellular phone user base has started shrinking in the country, posting negative growth despite falling calls rates and services. Around 0.618 million subscribers have become inactive by getting rid of their connections from the network of five cellular phone companies.

The mobile phone subscriber number was at its all time high in October 2008 with 90.52 million subscribers. The subscriber's rate is now witnessing a decreasing trend as the number of connections has reduced to 89.90 million by the end of December 2008, showing 0.7 percent decline in last two months.

Telecom analysts believe that cellular phone companies have captured the active chunk of Pakistani market that slightly slowed down their penetration in the big cities. However, companies have chalked out unique strategies to expand their service in small cities and villages of the country in order to attract more customers in their networks.

They added that economic slowdown, inflation coupled with the heavy tax burden on the services has diminished the affordability of using mobile services in the country.

In view of the country's population of around 160 million, the mobile phone teledensity has reached 55.80 by the end of December 2008, which was 56.20 in November 2008.

According to PTA, Mobilink was leading the market share with 28.47 million subscribers, followed by Telenor with 19.38 million subscribers just an edge up from Ufone having the preference of 19.30 million people.

Similarly, 16.91 million people are using the service of the UAE-based Warid by December 2008. Chinese mobile phone company, Zong posted healthy sales growth to reach a subscriber base of 5.5 million in the country.

Officials told Daily Times that the operators have regulated their sales and marketing of the product following strict actions taken by the authorities to raid the illegal franchises and sales centre.

The cellular operators have also blocked hundred thousand unverified and unregistered connections on the directives of regulators.
 

ISLAMABAD: Government of Pakistan has hired the services of a Swiss consultancy firm for analysing the Pak-US Bilateral Investment Treaty (BIT), Federal Minister for Investment, Waqar Ahmed Khan told Daily Times.

The Pakistan Peoples Party led coalition government has decided to obtain legal as well as expert opinion on the draft of the BIT. In this regard the draft has been handed over to Ministry of Law and Justice and private legal consultants (Swiss consultancy firm) so that its clauses are analysed keeping in view the international best practices, said the minister.

An effort was made to conclude BIT with outgoing Bush administration before January 20, 2009 but this effort did not matreialsed. Now Pakistan would negotiate BIT agreement with, Obama led US administration and a round of negotiation would be held between the two governments on an appropriate time in the near future, the minister said.

He dispelled the impression that signing of BIT with United States would be harmful for the economy and said that after settlement of few issues, this agreement would be beneficial for Pakistan.

Waqar Ahmed Khan informed that issues relating to arbitration and transparency clause needs to be resolved. In this regards, Pakistan has sought final comments from the United States so that the agreement is finalised by mutual consent. In a recent meeting with US Ambassador and US Commercial Attaché, the Ministry of Investment has also sought final opinion of US authorities. The present government wants BIT to be equally beneficial for both the countries, as this would be crucial for further negotiation regarding the Free Trade Agreement (FTA) with United States, the minister added.

Pakistan is of the view that signatory countries to BIT do not use any political influence or media campaign if any matter is referred for arbitration, the minister explained. Once the comments are received from US, this matter would be placed before the federal cabinet for formal approval, said Waqar Ahmed Khan.

It is pertinent to mention here that during the tenure of former President General Parvez Musharraf, there were some apprehensions in the government ministries over the signing of BIT with US due to which signing of this crucual agreement was cancelled during the visit of President Jorge W Bush to Pakistan.
 

ISLAMABAD: USAID is interested in modernising the agriculture sector, as it has the potential to uplift the economy of Pakistan, country head of USAID, Ms Anne Aareson said on Monday. She expressed these views during a meeting with Federal Food and Agriculture Minister, Nazar Muhammad Gondal in his office. “USAID is successfully working in Balochistan with the Ministry and in food deficient districts of FATA and NWFP with World Food Programme (WFO),” Anne added.
 

ISLAMABAD (January 20 2009): President Asif Ali Zardari on Monday asked the advisory panel of economists to chalk out economic policies for dealing with key issues of foreign investors' protection, circular debt and power shortage, ensuring optimum utilisation of domestic resources to meet short and long term economic goals.

The President, while describing the issue of hundreds of billion in circular debt and security for investors as critical issues, called for resolving these on priority basis for economic turnaround. Zardari was chairing a meeting here with the advisory panel of economists of the Planning Commission at the President House.

Advisory Panel Chairman Dr Hafeez A Pasha briefed the President on economic stabilisation of the country that was also attended by Finance Minister Shaukat Tarin, Minister for Commerce Makhdoom Amin Fahim, Minister for Food and Agriculture Nazar Muhammad Gondal, Minister for Investment Waqar Ahmad Khan, Minister for Information and Broadcasting Sherry Rehman and senior officials of relevant ministries besides members of the advisory panel.

Sources said that the panel suggested early end to the military operation in tribal areas to provide a favourable environment for investment, reduce dependency on foreign debt and explore indigenous revenue sources to achieve targets with accelerating efforts to market access to the developed countries for boosting the country's export.

Sources further said that the panel of economists also proposed to the President that the government should expedite implementation of the economic stabilisation plan for recovery of the economy. The Panel informed the President about the measures to cut down financing gap in the balance of payments in 2008-9.

The President said the first priority of the government was to fight militants to restore the writ of the government and also assure the investors that their investment would be safe and bring them high dividend. The President said stability of microeconomic indicators, overcoming energy shortage and providing social safety network to the country's poorest were major economic goals for ensuring national growth with a human face. The President asked the panel to suggest practical measures to generate employment in the country.

About energy situation, the President said fossil fuels were fast dwindling and there was need to develop alternate sources of energy to meet the growing demand. He said optimum utilisation of human resources was also important for steady growth and asked the panel to recommend both short and long term measures in this regard.

The President said he would like to get briefings on the macroeconomic stability framework more often from the advisory panel. Briefing the meeting, Dr Hafiz A Pasha outlined the principles of proposed stabilisation package. These principles, he said, emphasised mobilisation of domestic resources, protection to the poor, optimal utilisation of resources and adoption of an integrated strategy. He said the two-year stabilisation programme basically had to be a home-grown package, based on a strong social protection programme and independent of the quantum of external assistance.
 
Status
Not open for further replies.

Latest posts

Pakistan Affairs Latest Posts

Back
Top Bottom