Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan has a viable economy, says Noble laureate Professor Sen​

KARACHI (February 09 2009): The auto industry in Pakistan needs a long term and consistent policy to achieve the 500,000 units target. This will go a long way since engineering is the springboard of industrial development.

Pakistan has a viable economy, blessed with right entrepreneurship, right professionalism and right workmanship. Since 1951 to 2008, the average GDP growth has been 5.14 per cent higher up to 7 per cent.

The Noble prize laureate Professor Sen while addressing a gathering in his honour in India shared his vision about globalization in the presence of Indian prime minister and said that - globalization - economic liberalism, de-regularization and privatization - has led to higher deficit finance, trade imbalances and inflation all over the world and particularly the developing economies: to Benazir Bhutto, he said, that solution of poverty alleviation lies in glocalization for the developing countries like Pakistan. The Glocalization in fact - is Honda way - ie localisation of investment, production, QCD (based on quality, cost and delivery) and export. This is being generally also followed by some developing countries notably by India, Malaysia and China with tariff and non-tariff barriers. Incidentally, in that also lies increased investment, GDP growth and employment leading to alleviation of poverty - roti, kapra aur makan - of the ruling People's Party's motto.

Honda Atlas will play its part, among others. It will continue to live up to its commitment in offering products that change the landscape of the auto industry in the country.-

 

[Neo]

Pakistan expected to get $750m IMF loan in March​

ISLAMABAD: Pakistan is likely to receive a $750 million loan from the International Monetary Fund (IMF) by the end of March, after the successful completion of the first review of the two parties’ standby agreement.

Sources in the Finance Ministry told Daily Times the first review of the standby agreement with the IMF would be conducted in Dubai between February 14 and 24.

They said the key performance benchmark was a budget deficit at or below 4.2 percent of the Gross Domestic Product (GDP) during the current fiscal year.

The other important benchmark, they added, was to maintain State Bank borrowing at Rs 258 billion at the end of each quarter.

They said Pakistan’s budget deficit had been estimated at around two percent of the GDP, much less than the target agreed upon with the IMF. Similarly, they added, the State Bank borrowing had been maintained at the agreed upon level so both conditions had been met successfully.

According to the sources, the review of Islamabad’s economy would cover economic performance and economic data relating to the second quarter (October-December 2008) of the current fiscal. They said the IMF authorities would place their findings before their executive board for formal approval of the second instalment of $750 million to Pakistan after completion of the review.

The government finalised a $7.6 billion loan arrangement spanning a 23-month period to avert a potential economic crisis. Thus far, it has received $3.1 billion of the first tranche. The second instalment will be of $750 million.

 

[Neo]

ECC to approve 6.5m tonnes wheat purchase​

Govt agencies to procure wheat at 40pc higher price which will mainly benefit big landlords​

Tuesday, February 10, 2009

ISLAMABAD: The Economic Coordination Committee of the cabinet, in its meeting on Tuesday, is likely to approve purchase of 6.5 million tonnes of wheat out of expected crop of 23.5 to 24 million tonnes.

Under the proposed Wheat Procurement Policy 2009, the government would purchase 6.5 million tonnes at a price of Rs950 per 40 kg, 40 per cent higher than the price of the commodity in the international market.

Under this campaign, no other than influential wheat growers sitting on the treasury and opposition benches would be able to sell their produce at the high price.

To a question, an official said the government would have to spend a massive amount of Rs154 billion in taxpayers’ money for purchasing wheat.

However, medium and small growers would have no choice, but to sell their produce at much lower prices in the open market as flour mill owners have indicated that they will not buy the commodity from the growers at the support price of Rs950. Rather, the millers say, they would buy at a price which would be not more than Rs750 per 40 kg as landed cost of imported wheat, if any, will be Rs650 per 40 kg.

“It means that the wheat policy for 2009 will only benefit the influential growers and hurt medium and small growers,” the official said.

He said the country’s storage capacity was 4.5 million tonnes, but the government had decided to procure 6.5 million tonnes. This meant the government would face a big challenge in storing the commodity. It is believed two million tonnes of wheat would be kept in the open with covering of waterproof sheets, exposing the commodity to damage.

The official said under the proposed wheat policy Pakistan Agriculture Storage and Supplies Corporation (PASSCO) would procure 1.50 million tonnes, Punjab 3.5 million tonnes, Sindh 1.2 million tonnes, North West Frontier Province 0.30 million tonnes and Balochistan 0.05 million tonnes.

The government would also ensure that no restrictions are placed on inter-district and inter-provincial movement of wheat in the country.

The government will also ask commercial banks to give loans to the flour mills.

The official said the ECC was also likely to approve supply of 12 million cubic feet of gas per day to Walters Power Company for installing a rental power house at Naudero, Sindh. Sui Southern Gas Company has agreed to supply the required gas. —KM

 

[Neo]

Trade deficit at $10.72bn​

Tuesday, February 10, 2009

ISLAMABAD: Pakistan’s trade deficit was recorded at $10.72 billion in the first seven months of the current financial year, Geo News reported on Monday. According to the figures released by the Federal Bureau of Statistics, the country’s exports increased by eight per cent to 10.95 billion dollars compared with the same period last year. Imports were recorded at 21.66 billion dollars which is 5.77 per cent higher than the previous year. The government has set an export target of 22 billion dollars for the current fiscal year while imports are expected to remain around 34bn dollars.

 

[Neo]

CPI drops significantly to 20.52 percent​

KARACHI: Consumer Price Index (CPI) based inflation eased off during month of January as it dropped substantially to 20.52 percent from 24.43 percent observed during the month of December 2008-09.

The decline in CPI inflation during the month under review has been attributed to a fall in the commodities prices as well as the domestic petroleum price, whose downward revision in December started impacting the inflation in January.

During July-January of current fiscal, it stood at 23.52 percent over the same months of previous year, Federal Bureau of Statistics (FBS) reported on Monday. The inflation number of January over the preceding month of December was even more encouraging as it decreased by 0.42 percent.

“These are quite encouraging inflation numbers, which are likely to drop as the year passes on,” Mohammad Imran, Head of Research at First Capital Equities Limited (FCEL) believed.

He predicted substantial decline in inflation number during the month of March and forecasted that if the current trends persists, inflation might end up in single digits in month of May or June of the year on month-on-month basis.

Imran held that the core inflation is the key factor to be watched for any interest cut by central bank.

“The core inflation numbers are intact for the last couple of months and if they go down or even remain constant, a downward revision in the discount rate could not be ruled out,” he noted.

The inflation number for the whole year could fell to 19 percent, which would be below the revised target of 20 percent.

It is pertinent to mention that high commodities and petroleum prices pushed up the inflation to its highest level to 25 percent in first quarter of the current fiscal.

The CPI basket shows that food inflation, having over 40.24 percent wieghtage in the CPI basket also surged 21.61 percent in January of current fiscal over the preceding year. Fuel and lighting index kept rising during the month and is up by almost 27 percent followed by transport and communication, which rose by 25.22 percent.

The education is still costly with its index rising by 17.06 percent and Medicare’s cost was up by 14.36 percent during January. During first six months of 2008-09, Wholesale Price Index (WPI) and Sensitive Price Index (SPI) rose by 26.15 and 29.42 percent, respectively.

 

[Neo]

Trade deficit balloons to $10.727 billion​

ISLAMABAD: Country’s trade deficit has widened to $10.727 billion during first seven months July-January period of current fiscal year 2008-09 as compared with a deficit of $10.357 billion in the same period last fiscal year, indicating an increase of 3.5 percent.

This is a major decline in the growth rate of trade deficit as the deficit growth was in double-digit during Jul-Dec period.

Comparison July-January: According to the official data released by Federal Bureau of Statistics (FBS) revealed that country’s exports amounted to $10.934 billion in July-Jan period of current fiscal year as compared with the exports of $10.122 billion in the same period of last fiscal year, an increase of 8.02 percent. Some 83.5 percent contribution to exports during first half came from exports of rice, cement and chemicals. On the other hand, around 95 percent contribution to imports during first half came from petroleum, fertlizer and wheat imports.

The exports of the country have been targeted to grow by 16.5 percent in the current fiscal year to meet the annual exports target of $21.2 billion, however, a slump is seen in months to come.

However, due to the unprecedented power and gas load shedding, depreciation of Pak Rupee, increase in cost of capital as well as production and capacity constraints are proving to be instrumental in low growth of country’s exports during the first half, said an official at Ministry of Commerce.

Country’s imports have witnessed a surge by 5.77 percent and amounted to $21.661 billion in first seven months period against the total imports of $20.479 billion in same period last fiscal year.

Drop in aggregate demand in economy can be witnessed by decrease in imports from 12.8 percent growth in first six months to a growth of 5.77 percent in Jul-January. This clearly shows that State Bank of Pakistan and government’s steps are now yielding results and it is hoped that demand in economy would go down further in months to come, an official said.

Comparison January 2009 over January 2008: Country has exported goods worth $1.360 billion in January 2009 as compared to exports of $1.464 billion in January 2008, showing negative 7.07 percent growth. This was due to closure of textile units as well as other major industries owing to gas and power shortages in the month under review, which stalled the production, explained the official.

Imports amounted to $2.528 billion in January 2009 against imports of $3.529 billion in January 2008 indicating a decrease of 28.35 percent. Trade deficit was at $1.167 billion in January 2009 against deficit of $2.064 billion indicating a major decline of 43.44 percent.

Comparison January 2009-December 2008: Exports of the country registered a growth of 3.79 percent in January 2009 with total exports of $1.360 billion as against exports of $1.310 billion in December 2008. Imports of the country witnessed a growth of 18.88 percent in January 2009 with total imports at $2.528 billion as against the imports of $2.126 billion in December 2008. Trade deficit in January 2009 surged by 43.13 percent with total deficit at $1.167 billion as against the deficit of $815.9 million in December 2008.

 

[Neo]

Pakistan may miss fiscal deficit target ​

ISLAMABAD (February 10 2009): Pakistan might miss its fiscal deficit target unless it takes strong corrective actions, says Fiscal Policy Statement 2008-09 released a few days back by Finance Ministry.

It said: "The revenue balance for the first quarter is in deficit by Rs 42.8 billion while the primary balance is in deficit by Rs 24.5 billion. If the current trends persist, and strong corrective measures are not undertaken promptly, the annual fiscal deficit target of 4.2 percent of GDP for 2008-09 may not be met."

The statement stresses on implementing rules-based fiscal policy rather than discretionary measures based policy, which proves ad hoc to cope with day to day economic issues.

It is very crucial that the government makes an effort to achieve the fiscal deficit target as this would send a strong signal of the government's commitment to fiscal discipline and macroeconomic stability, adds the statement. Pakistan failed to fulfil two elements of the 'Fiscal Responsibility and Debt Limitation Act 2005 in fiscal year 2007-08.

Under the Act, the government was required to achieve zero revenue deficit by the end of the fiscal year 2007-08. Instead of achieving, it jumped to an 18-year high (with the exception of 1998-99), increasing by Rs 359 billion, or 3.4 percent of GDP.

The Act also required to reduce public debt at least 2.5 percentage points of GDP every year. Public debt, instead of declining by 2.5 percentage points of GDP, in fact increased by 1.1 percentage points. The Statement does not doubt the government's efforts.

It says: "The government is making serious efforts to reduce imbalances in the shortest possible time because it believes that the longer the imbalances persist, the greater will be the adjustment requirement and more will be the associated pain for the common man."

It expects that the government will return to a rule-based fiscal policy (rather than discretionary measures which prove normally ad hoc to cope with day to day issues) and will adhere to the principles as laid down in the FRDL Act 2005, in the next two years, that is, by the end of the fiscal year 2009-10.

The Statement says that there is increasing evidence that the present tax system can no longer serve the needs of the country. Pakistan's tax system faces several structural weaknesses that resulted in the stagnation of tax-to-GDP ratio at around 10 to 12 percent over the last many years.

"It is time to take a fresh look at Pakistan's tax system and tax administration which require far-reaching reforms. Widening the tax base by reducing exemptions, incentives and concessions is one of the guiding principles of an efficient tax system.

"No country can develop on a sustained basis with tax-to-GDP ratio at 10 percent. Broadening the tax bases by bringing sectors which are either un-taxed or under-taxed into the tax net is the only way forward in achieving a tax-to-GDP ratio at 16 to 17 percent which is the average tax effort of developing countries.

"Going forward, Pakistan will be needing large resources to build and strengthen the country's physical and human infrastructure. With current limited tax bases, it will be next to impossible to generate adequate resources to fund these infrastructure programs. This would lead to increasing debt burden."

 

[Neo]

'Oilseed production can be enhanced through technical support' ​

LAHORE (February 10 2009): The oilseed production in Pakistan could be enhanced through technical support and creation of strong linkages in this vital sector. This was resolved in a meeting of the US Agricultural Counsellor, USDA with the stakeholders of oilseed sector in Pakistan.

The meeting was arranged by the Pakistan Oilseed Development Board (PODB) provincial directorate in order to strengthen the oilseed sector with the technical/financial collaboration of USDA. PODB Provincial Director, Syed Nasir Ali Shah in the meeting threw light on the activities of the Board for the promotion of oilseed crops and oil-bearing trees, sources in the PODB Punjab Directorate told Business Recorder, here on Monday.

He said that wild olive (Kahu) was available in abundance (3.5 million plants approximately) in Potohar & Khushab areas of the Punjab province. It provides vast scope for the conversion of this natural plantation in to oil bearing species and establishment of olive orchards on marginal lands through saplings to supplement the local oilseed production, he added.

Representatives of solvent industries, sources said, discussed in detail about the production and procurement of indigenous oilseed crops- sunflower, canola and soybean; their crushing, marketing and use of bye-products. They also discussed the available paraphernalia of crushing industry helpful in handling the import of huge quantity of oilseeds in Pakistan.

They shared that the import of these oilseeds was very much linked with the availability and prices of palm oil and the freight charges. Discussing the current situation of oilseeds cultivation, the Provincial Director PODB said that low priority policy to oilseed crops and announcement of attractive wheat price by the government was likely to have negative impact on cultivation of canola and sunflower being the non-traditional crops.

He suggested an early announcement of sunflower support price and its procurement arrangement through Passco as immediate remedy to restore the confidence of the growers. Joseph M. Carroll, US Agricultural Counsellor briefed the participants of the meeting about USDA ongoing activities and future plans in Pakistan. He showed his interest for the enhancement of local oilseed production through technical support and development of strong linkages helpful in the promotion of bilateral trade in this sector.

The meeting also discussed the prospects of cultivation of soybean in Pakistan and US support in this regard. It was proposed that American Soybean Association (ASA) should be asked to conduct technical study for soybean cultivation in different ecological zones of Pakistan in collaboration with PODB.

Summing up the discussion, PODB officials requested the participants to initiate proposals, identifying the fields of common interest, where the US technical/financial assistance is desired to enhance the local oilseed crop production for achieving self-sufficiency in edible oils, the sources concluded.

 

[Neo]

Reforms in the budget process ​

EDITORIAL (February 10 2009): It has been revealed exclusively to the Business Recorder that the Ministry of Finance is undertaking reforms in the budget preparation process that include top down and bottom up components - the former prescribing indicative budget ceiling and the latter providing for output based budgeting by ministries.

The objective is to curtail the current practice of seeking as much allocation as possible by each ministry at the start of the budgetary year, which would account for the ceiling, while leaving large sums unspent at the end, an obviously wasteful use of scarce resources, which accounts for an output based budgeting. In other words, the budget allocations would henceforth be linked to performance of individual ministries.

By definition, performance based allocations are easier to evaluate where there is a quantifiable output. Thus development expenditure, which has a clearly defined component of quantifiable outputs, would be the main if not the sole target of this reform. It is pertinent to note in this context that the present government, in response to a burgeoning budget deficit, had already started trimming development expenditure by the middle of last year by prioritising according to completion date.

Development expenditure, unfortunately, has invariably been the first casualty in the process of dealing with government profligacy of the past as well as present. Be that as it may there is a critical need for each ministry to ensure that funds earmarked for development for the year are used effectively. And this measure would go some way in ensuring precisely that.

However, the major problem with respect to poor utilisation of scarce resources in this country has always been more closely linked with rising current expenditure, inclusive of defence expenditure. Current expenditure continues to rise unchecked and there is little evidence to suggest that the present government is focused on rationalising it.

Civil service reforms which would allow the government to trim its large bureaucracy not only in terms of reducing the number of superfluous state employees but also ensuring that those who are left can be given salaries commensurate with the private sector in an effort to boost their performance as well as reduce the existing high corruption levels are urgently required.

Numerous studies have been done in this regard which have identified specific measures that need to be taken but have gone largely ignored by our governments. In addition, the present size of the Cabinet (83 members), is not economically justified in a country where poverty levels are so high.

While government supporters would argue that political compulsions forced the coalition government into having an unprecedented large cabinet yet one would have hoped that these compulsions would have taken a back seat to the economy at least till the country is out of the current economic morass which is causing untold misery to the people.

While economists would no doubt lament the fact that defence will be exempted from performance based allocations yet a close look at the military's engagements may preclude such a linkage. Democracy's compulsion however is to debate defence expenditure in the Parliament more rigorously and the onus for that falls not only on the government but also members of the Opposition.

 

[Omar1984]

‘Balochistan seafood to be introduced in world markets’

Wednesday, February 11, 2009

QUETTA: Chief Minister Balochistan Nawab Aslam Khan Raisani on Tuesday said measures would be taken to introduce seafood obtained from Balochistan seas in the international markets. Addressing a high-level meeting, the chief minister said the government would take all possible measures in order to promote fishing, which would not only benefit fishermen but also strengthen the province financially. Earlier, a non-governmental organisation working on dredging and other facilities at the fish harbours briefed the chief minister on the problems and prospects of promoting fishing in Balochistan. The chief minister said experts must keep space for any future amendment or expansion before launching any new project in order to save funds and labour from wastage. He directed concerted efforts for modernising fishing harbours at Pashkan, Sar Bandar, Jiwani and other areas.

‘Balochistan seafood to be introduced in world markets’

 

[Omar1984]

Rain raises wheat crop prospects

Wednesday, February 11, 2009
By By Jawwad Rizvi
LAHORE

The ongoing rains will bring positive impact on the Rabi crops and help get a bumper wheat crop.

Timely rains have also compensated for urea fertilizer shortage and would minimise its impact on crop production and also save money for the farmers.

The Rabi crops across the country are at growing stage and the rains from this western spell is expected to have a good impact on the agriculture of the country.

During this period, the daily temperature had slightly moved towards higher side. However, there will be no significant shortfall of water requirement for the standing crops. All these signs bring positive impact on the wheat crop as well as other Rabi crops which are at pre-maturing stage; the wheat crop is at shooting stage. The water requirement of Rabi crops is not as high as mature crops. The recent rains will also improve per acreage yield as well as crop health.

Similarly, the rains will also boost other Rabi crops including gram, maize, sugarcane, sunflower and other minor crops. Rain in March could bring negative impact on gram crops when it will at maturing stage. The rain would also be helpful for crops to be cultivated in next couple of weeks.

The government has set wheat-sowing area for Punjab at 6.460 million hectares and covered 6.606 million hectares (2.26 per cent more than target). For Sindh, the government has set a target of 0.992 million hectares and covered around 1.027 million hectares (3.52 per cent more than the target). For NWFP, the government has set the target of 0.75 million hectares and covered 0.745 million hectares (0.67 per cent less than the target). Similarly, for Balochistan the government has set the target of 0.41 million hectares but achieved 0.371 million hectares, which is ten per cent less than the target.

Hamid Malhi, a progressive farmer said increase in the wheat sowing area as well as timely rain would help increase the wheat production this year as compared to the last year. He further said the country might achieve a bumper wheat crop.

Agriculture experts of the Punjab Agriculture Extension Wing said the timely rain during the whole Rabi season was a blessing. They said the current rainy season was a indeed a good omen for wheat growers. After current rain, the standing wheat crop will quickly shoot up and it will grow in a better way.

They said wheat-growing areas of the province had received widespread rains during December 6 to December 11 and December 19 to December 20 2008. Similarly, the rains during first and third week of January 2009 also left positive impact on the wheat crop. The experts of the Agriculture Extension department said if the temperature remained below 27 centigrade during February and March 2009 a bumper wheat crop could be achieved.

Rain raises wheat crop prospects

 

[Omar1984]

Remittances to Pakistan 'can double' to $15bn

Remittances to Pakistan will double to $15 billion (Dh55bn) annually if the government removes the service charges imposed on these flows, a federal minister said in Dubai yesterday.

The Pakistan Government has been considering the abolition of these charges, said Dr Farooq Sattar, Federal Minister for Overseas Pakistanis.

Sattar urged Pakistanis living abroad to invest in their homeland. "If you (overseas Pakistanis) invest in the country, foreign investors will follow suit," he said at the 40th anniversary celebrations of the Chapal Group.

The ministry will create special investment zones where overseas Pakistanis can invest and establish manufacturing units, Sattar said. Overseas Pakistani investors would be attracted through incentives to invest in the housing and textile sectors in metropolitan cities such as Karachi and Lahore, he said.

Foreign investment fell to $5.19 billion in the financial year ended June 30, from a record $8.43bn, government data show. Standard Chartered bank said in a report that the Pakistani rupee, which plunged to a record low in October, may slide three per cent by year-end as the global economic slump reduces inflows of investment and remittances.

Remittances in first five months of the current financial year increased 15 per cent to $3bn. The country expects remittances will total more than $7bn by the end of current financial year.

Sattar said Pakistan has proposed an initiative to ensure the participation of overseas Pakistanis in the country's parliamentary process by giving them a means to vote in elections from their country of residence. Pakistanis living abroad have been playing a "pivotal role in the country's socio-economic development and they should have a voice in the democratic process, he added. Quotas in various housing schemes to be launched by the government would also be expanded to accommodate more overseas Pakistanis, he said.

http://www.business24-7.ae/articles/2009/2/pages/02112009_9775ff4000c6419b884aa8b2b736999e.aspx

 

[Neo]

Czech company keen to invest in power ​

Wednesday, February 11, 2009

ISLAMABAD: A Czech company has shown keen interest in power sector development in the country and gave a detailed briefing about its products, including turbines and generators.

A two-member delegation of CKD Group of companies of the Czech Republic called on Chief Executive Officer Engineering Development Board (EDB) Asad Elahi here on Tuesday.

The delegation comprised Frantisck Vladar, CEO CKD Export and Jan Musil, Chairman Board of Directors CKD Group. The company specialises in the production of power plants, electricity and gas compressors and motors. Other areas of cooperation were also identified.

CEO EDB gave a detailed briefing to the delegation about the working and future plans of the Board. He assured the delegation that the Board will bring into contact Pakistani companies for possible future technical agreements with CKD Group.

Asad Elahi informed the delegation that EDB was in touch with WAPDA in order to fulfill their medium and long-term requirements. He said that the Board had formulated two policies, auto and trucking, in the last few years and was currently working on the formulation of a steel policy. The Board has also formed working groups for the development of electronic industry and foundry sector, he said.

 

[Neo]

‘Exports to Bangladesh to reach $500m’ ​

Wednesday, February 11, 2009

HYDERABAD: Trade volume between Pakistan and Bangladesh is $350 million, which could be increased and Pakistan’s exports to Bangladesh are expected to reach $500m, said the Deputy High Commissioner of Bangladesh Saqib Ali.

He was addressing a ceremony organised by the Sindh Historical, Educational and Cultural Society in Kohsar area as chief guest at a reception given in honour of office-bearers of the Hyderabad Chamber of Commerce and Industry (HCCI) on Monday night.

He said that he is expecting that Pakistan exports hit the target of $500 million, of which most exports include textile products, and asked the industrialists of Hyderabad to come up with proposals with regard to the bangle and motorbike industries.

He proposed that a working paper should be formed and invited industrialists of Hyderabad to Karachi in a couple of weeks to discuss and devise a paper in this regard for cooperation in different sectors between the two countries.

“We should have a course of action and we should coordinate with each other,” the envoy said, adding that he is also ready to support the formation of an organisation aimed at improving trade ties between Pakistan and Bangladesh with its office in Hyderabad.

Saqib Ali said that Bangladesh’s economy is growing. “Our exports to other countries have reached $6.5 billion and we are having a surplus current account despite recession.”

 

[Neo]

Rs490m Benazir University to be set up soon in Dir ​

Minister says PPP-led govt successful in improving law and order situation in Fata, Kurram Agency​

Wednesday, February 11, 2009

ISLAMABAD: Federal Minister for States and Frontier Regions (SAFRON) Najamuddin Khan here on Tuesday said the government would soon establish the Benazir Science & Technology University in Dir and the proposal had been sent to the Planning Division for necessary action.

He said the university would be established in Shringal (Dir) with an amount of Rs490 million. In an exclusive interview with APP, the minister said the government had taken parliamentarians and tribal elders from Fata on board for legislation and abolishing the Frontier Crimes Regulation (FCR) in collaboration with the Law Ministry.

He said due to the personal interest of President Asif Ali Zardari, ties between Afghanistan and Pakistan had improved and were now cordial and warm, adding that both the nations had also strengthened mutual confidence.

He said the PPP-led government was successful in improving the law and order situation in Fata and the Kurram Agency, adding that talks were held with the tribal elders in Swat, Dir and Malakand Divisions and breakthrough had been achieved vis-a-vis the demand for the enforcement of Shariah laws in the region.

“The SAFRON Ministry has provided 10 ambulances to hospitals for the people living in the slum areas of Upper and Lower Dir. Moreover, the vaccination facility has been made available to the victims of Hepatitis C under the Benazir Relief Fund,” he added.

The minister said that more than 10,000 people daily crossed the Torkham Border without any checking due to its length, stretching more than 1,200 kilometres.

Najamuddin said Pakistan had been providing every facility to Afghan refugees for the past three decades and the government was spending billions of rupees on providing wheat, electricity and other amenities of life to them. He said 1.5 million refugees had been registered and the remaining will soon be enlisted.

“Pakistan enjoys good ties with the Afghan government and a committee has been constituted by the prime minister for Afghan refugees living in Pakistan.”Najamuddin Khan also urged the world community and donors to come forward and help provide facilities to the refugees.