Pakistan Economy - News & Updates - Archive

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Pakistan’s progress on track: Waqar

ISLAMABAD: Secretary Finance, Dr Waqar Masood Khan said on Thursday that International Monetary Fund (IMF) review meeting in Dubai has consented that Pakistan’s progress on funds programme is “on track.”

“The IMF has expressed its satisfaction over the progress of Pakistan’s economic performance in first quarter of the year and also agreed the projected economic targets in the next six months of the current financial year and consented that the progress of Pakistan’s IMF programme is on track”, Dr Waqar Masood Khan told APP on phone from Dubai here this morning. Waqar Masood Khan, who is currently leading Pakistan in the IMF review meeting in Dubai, expressed the hope that Pakistan would get second tranche of $800 million by the end of March due to the country’s progress on economic front.

According to a statement issued by the IMF Staff Mission on Pakistan said that an International Monetary Fund (IMF) staff mission, led by Adnan Mazarei, visited Islamabad and Dubai over the past 12 days to conduct the 2009 Article IV consultation and the first review under Pakistan’s Stand-By Arrangement (SBA). The SDR 5.169 billion (about $7.6 billion) SBA was approved by the Executive Board of the IMF on November 24, 2008 and a first disbursement of SDR 2.067 billion (about $3.1 billion) was made on November 26, 2008. staff report

Daily Times - Leading News Resource of Pakistan

 

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IMF allows interest rate cut if inflation declines ​

Friday, February 27, 2009

ISLAMABAD: In a major development, the IMF has allowed the government of Pakistan to reduce discount rate in the next quarter’s monetary policy to be announced by the end of April, provided core inflation continues to fall.

Pakistan had sought an agreement with the IMF during Dubai talks to cut the discount rate so that economic activities in the country could revive.

The objectives of a tight monetary policy have been achieved following collapse of oil and food commodities’ prices due to which the import bill had entered the negative zone.

The government had increased the discount rate by 2 per cent last year as a condition before moving the IMF for a bailout package.

Usually, the Fund, does not allow any country, which comes under its programme to decrease the discount rates, rather, it always religiously pursues tight monetary policy, but in case of Pakistan, the official said, because of the performance of the government imports have entered negative zone and the Fund has conditionally agreed to reduce the discount rates. The Fund has linked relief in interest rates with the reduction in core inflation.

“The core inflation has started going down as per the figures available in the month of January and if this trend keeps declining in the month of February, March and April, the State Bank of Pakistan can reduce the interest rates accordingly,” a senior official who was part of the delegation of Pakistan which recently held talks with IMF in Dubai.

There has been a consistent demand from the business community that the government needs to reduce to interest rates otherwise the economic activities would not trigger.

However, the IMF’s decision to this effect would have good impact on Pakistan’s economy as after April, the economic activities in the country would kick off meaning by that in next fiscal Pakistan would experience more GDP growth than the 2.5 percent which has now been fixed for the ongoing fiscal.

“The economic growth is the only tool, which can enhance the debt sustainability capacity of the country, which is on way to deterioration because of massive slow down in the economic growth. The debt servicing would be the major issue in the future for country.”

Pakistan is to utilize its resources of Rs700 billion for debt servicing only in the current financial year. This year the government is likely to collect tax revenue of Rs1,300 billion and if Rs700 billion is consumed on just debt servicing and 2.9 percent of the GDP which is to be Rs300 billion on defence expenditures and the remaining amount for the salaries and pensions of the government employees, the country would have nothing for development except loans.

In the case the central bank reduces the interest rates by end April, Pakistan might come into a position after certain period to increase its debt paying capacity.

 

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ADB team experiences Pak political instability ​

Friday, February 27, 2009

ISLAMABAD: The disqualification of Sharif brothers on Wednesday created an awkward situation for the Asian Development Bank (ADB) delegation when its vice president reached the Chief Minister House for a scheduled meeting with Shahbaz Sharif only to find out that the chief minister has been removed from his office.

It was a coincidence that the apex court decision was announced exactly at the time when Shahbaz Sharif was supposed to meet the ADB delegation, headed by its Vice President Xiaoyu Zhao on Wednesday noon.

Sources in multilateral donor agencies as well as in the Economic Affairs Division confirmed to The News on Thursday that ADB Vice President reached the Chief Minister office on Wednesday noon for a meeting with Shahbaz Sharif.

At that moment, the apex court decision had been announced and the ADB team found panic in the Chief Minister’s Secretariat.

The former CM cancelled all his scheduled meetings and the visiting ADB mission was also unable to hold meeting with the former chief minister Punjab.

“It was very awkward situation where we were completely clueless what to do for a while,” said one of the officials of a donor agency and added, “this kind of political instability would damage the economy of Pakistan.”

The finance ministry officials conceded that no investor or donor would risk investments in politically instable environment that paves the way for inconsistent economic policies resulting in financial and economic predicament.

“It is a joke with this country where political instability will disallow economic prosperity,” said an independent economist while talking to this scribe. —MH

 

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ADB to double assistance up to $3bn To finance Diamer-Basha dam​

Friday, February 27, 2009
By Mehtab Haider

ISLAMABAD: The Asian Development Bank (ADB) has offered to double its annual assistance to Pakistan from earlier planned $1.5 billion up to $3 billion in order to help it improve infrastructure and overcome budgetary difficulties.

“We can double our annual assistance to Pakistan for the next three years provided funds availability with the Bank increases,” ADB Vice President Xiaoyu Zhao told reporters after holding a meeting with a Pakistani delegation, led by Minister of State for Economic Affairs Hina Rabbani Khar, on Thursday.

The ADB is currently preparing a three-year Country Partnership Strategy (CPS) for 2009-10 to 2012-13 under which assistance to Pakistan could be jacked up to $9 billion from earlier planned $4.5 billion. “The ADB on Thursday offered Pakistan to double its annual assistance up to $3 billion from earlier envisaged $1.5 billion from 2009,” a senior official of the ADB said.

An ADB delegation, headed by its Vice President Xiaoyu Zhao, called on Prime Minister Syed Yusuf Raza Gilani here at the PM House on Thursday afternoon, and agreed in principle to finance Diamer-Basha dam project.

“We can double Pakistan’s assistance up to $3 billion per annum provided Islamabad makes a request in this regard as well as funds with the ADB increases,” the Bank’s vice president told reporters. On the most critical issue of tight monetary policy, he said the inflation was showing a declining trend and easing of monetary and fiscal policies could be done to give an impetus to sluggish economic activities.

It is relevant to mention here that under the IMF prescription the government is reluctant to decrease discount rates that have resulted into choking the whole economic activities and slowed economic growth.

Pakistan and the IMF during recently concluded talks at Dubai agreed to review the monetary policy in future line of Pakistan but the central bank will not ease down its monetary stance unless the core inflation comes down.

When the ADB Vice president was asked about financing facility of the bank for mega water projects, he said the ADB was ready to extend its financing facility for construction of mega water projects in the country.

The PPP-led government is making plans to construct over $12 billion Basha dam on which the work will be started within the ongoing calendar year 2009.

He said the major challenge for Pakistan’s economy is lack of state of the art infrastructure, resulting into creating difficulties for achieving sustained growth.

On this occasion, the minister of state for economic affairs hoped that the ADB would extend its $500 million budgetary support under Economic Transformation Programme before June 2009. However, during the meeting with the prime minister, the premier expressed the hope that this cooperation would continue for helping the country to overcome the shortage of energy, water and food through construction of new dams and other related projects. He said construction of farm to market road network, development of urban and rural areas, provision of equitable economic opportunities as well as improving the social sector particularly the health and education facilities are the foremost agenda before the government.

The premier said the government is fully committed to reducing poverty, increasing per capita income, generating more jobs and improving the living standard of the people. He said owing to prudent economic policies undertaken by the government, the economy is now started showing positive results.

 

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Pak share in world cotton output falls ​

Friday, February 27, 2009

LAHORE: Pakistan’s share in world cotton production has dropped by 10 per cent since 2004, making it an importer while India has boosted its cotton output by 25 per cent to become a leading exporter of the commodity.

Data received from the United States Development Agency reveal Pakistan continued to boost its share in world cotton production for three decades, increasing it from 4.8 per cent during 1970-74 to 8.8 per cent in 2000-03. Its growth in cotton crop was much higher than that of India during these three decades as Delhi, which produced 8.5 per cent of global cotton, could enhance its share to only 11.6 per cent.

Agricultural planners in Pakistan then lost the way as after achieving a share of 9.1 per cent in global cotton production the decline started which they could not stop. That took the country’s cotton production share to 8.2 per cent.

Indian agricultural planners, in contrast, gave their country a giant leap and the country now produces 19.6 per cent of the total cotton produced globally. Availability of local cotton has provided the Indian textile industry with a huge price advantage as their share in world exports has increased from 0.6 per cent during 1970-74 to 12.2 per cent now.

Pakistan’s share in global cotton exports has fallen from 2.9 per cent during 1970-74 to merely 0.6 per cent. Even this cotton is exported to keep its rates high in Pakistan.

Pakistan, in fact, remained self-sufficient in cotton till the period from 1985 to 1989 and then cotton imports started increasing and currently 5.8 per cent of world cotton exports are destined for Pakistan.

Cotton imports in India are only 1 per cent of total global cotton trade. India consumed 11 per cent of the cotton produced in the world during 1990-94 against 8 per cent by Pakistan. Currently, cotton use in India accounts for 15 per cent of total global consumption against 10 per cent in Pakistan.

“Shortage of local cotton is one of the major factors which has kept the textile industry of the country under pressure,” said All Pakistan Textile Mills Association (Punjab) Chairman Akber Sheikh.

He said cotton farmers might not be getting a right price due to control of middlemen but spinners got their basic raw material above global cotton rates due to production shortfall. “Mills get cotton at import substitution price (global price of cotton plus import cost). The ideal price should be export parity price that Indian farmers get,” he added.

APTMA former chairman Abid Farooq said frequent change of governments had hampered efforts to introduce BT cotton technology which sparked revolution in the Indian textile industry. He said negotiations with global BT cotton suppliers should remain continue by successive governments so vital interests of the country were not compromised.

Pakistan had to sign an agreement with a leading BT cottonseed producer in the US the day army toppled the government in 1999, he said, adding the issue was not taken up by the next government which had adversely impacted the textile sector.

 

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Forex reserves down to $10.166bn​

KARACHI: Pakistan’s total liquid foreign exchange reserves have fallen by $205.1 million to $10.166 billion this week. According to the weekly report of State Bank of Pakistan on Thursday, the foreign exchange reserves held by SBP were estimated at $6.734 billion on February 21, 2009, while reserves held by the banks, other than SBP, stood at about $3.432 billion.

 

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‘Pak-Iran gas pipeline deal in final stages’​

PESHAWAR: Talks on Pak-Iran gas pipeline are in their final stages, Iranian Consul General Muhammad Iqbal Asghari said on Thursday. Talking to reporters at his residence, Asghari said the Iranian government was aware that Pakistan needed gas and had chosen to supply it to Pakistan, rejecting Swiss and Bulgarian proposals. Answering a question about an Iranian diplomat kidnapped from Peshawar four months ago, he said those behind the kidnapping wanted to damage Pak-Iran ties. Asghari said the Pakistani government should ensure safe recovery of the diplomat, adding no group had yet contacted the Iranian embassy regarding the kidnapping.

 

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‘Pakistan seeks more trade with US to overcome economic issues’​

NEW YORK: Pakistan is keen to expand trade with the United States (US) to overcome its economic problems, Ambassador Abdullah Haroon said on Tuesday, hoping the Obama administration would consider giving more market access to Pakistani goods. Speaking to a group of members of World Youth Institute, a United Nations-affiliated body, at the Pakistan Mission, Pakistan’s envoy to the UN hoped the US government, which is currently reviewing is Afghan policy, would devise a plan to not only deal with terrorism along the Pak-Afghan border but also to solve Pakistan’s economic problems.

Pakistan's main exports – cotton and textile products – amounted to $7 billion, which had the potential of increasing to $15 billion. Other countries that have enhanced trade with the US bought raw cotton from Pakistan, and shipped finished textiles to the US. Haroon said Pakistan's economic difficulties went back to the 1979 Soviet invasion of Afghanistan when Pakistan had been burdened with over three million Afghan refugees, adding Pakistan’s government had spent $150 billion in 20 years on providing food and shelter to the refugees. The current economic situation, he said, was due to the political and economic backlash Pakistan had suffered for supporting the Afghan mujahideen to oust the Soviet Army.

 

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ADB assistance could double to $9bn​

* ADB vice president meets Gilani, agrees to finance Basha dam project​

ISLAMABAD: The economic assistance from the Asian Development Bank (ADB) under its Country Partnership Strategy (CPS) 2009-13 may be hiked to $9 billion from the existing proposition of $4.5 billion.

The ADB has offered Islamabad to double the annual economic assistance to $3 billion from the proposed $1.5 billion to help Pakistan improve its infrastructure and overcome its economic challenges. "The ADB can double its annual assistance for Pakistan for the next three years, provided that the funding availability of the bank is increased," visiting ADB Vice President Xiaoyu Zhao told reporters on Thursday. "We can double Pakistan's assistance up to $3 billion per annum provided Islamabad makes a request in this regard as well as the funding available to ADB also increases," the ADB vice president said. He earlier led an ADB delegation in a meeting with a Pakistani economic team, which was led by Minister of State for Economic Affairs Hina Rabbani Khar.

Zhao said during the meeting that the major challenge for Pakistan's economy was lack of proper infrastructure, which created hurdles for achieving sustained growth. The minister hoped the ADB would extend its $500 million budgetary support under the Economic Transformation Programme before June 2009. The ADB is currently planning a three-year CPS from 2009-2010 to 2012-13, under which Islamabad could receive as much as $9 billion in assistance.

Dam project: Later, the ADB delegation also met Prime Minister Yousuf Raza Gilani at the Prime Minister’s House and agreed to finance the $8.5-billion Basha-Diamer Dam project. The government is planning to start the dam’s construction in the current year.

The prime minister hoped the ADB would continue its cooperation for helping Islamabad construct new dams to overcome the shortage of energy, food and water. Gilani said construction of a farm-to-market road network, the development of urban and rural areas, provision of equitable economic opportunities and improved social sector facilities were the government’s top priorities.

The prime minister said the government was fully committed to reducing poverty, increasing per capita income, creating employment opportunities and improving the people’s living standards.

While assuring the ADB's complete support for Pakistan, Zhao briefed the prime minister on the development activities undertaken by the bank in various sector of the country’s economy.

 

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US provides $22.4m grant in food aid to Pakistan ​

ISLAMABAD (February 27, 2009): The United States Agency for International Development (USAID) and the United Nations World Food Program announced the signing of an agreement valued at $22.4 million to help ease Pakistan's food crisis.

USAID/Pakistan Deputy Mission Director Joseph Williams speaking at the signing ceremony said that "this Food Security Relief Program will benefit thousands of Pakistanis who are affected by the rising price of basic food items.

I am particularly pleased that many of those who will benefit from this food aid are Pakistani school children."

The United States will grant $22.4 to the World Food Program (WFP) to provide approximately 33,731 metric tons (MT) of wheat and 4,825 metric tons (MT) of edible oil to over 2,710,000 Pakistanis, including 405,000 primary school students. WFP will distribute this food aid in 20 districts in the North-West Frontier Province (NWFP), Balochistan, and arid zones of Sindh.

Flanked by Pakistan's Additional Secretary of Food, Agriculture and Livestock, Tauqir Ahmad Faiq, WFP Representative in Pakistan Wolfgang Herbinger said: "This grant comes at a very critical time and will help WFP continue its assistance to more than three million needy people hit hard by the surge in food prices. We appreciate the role of USAID as a development partner in addressing the hardships faced by poor Pakistanis, he added."

WFP, UNESCO, the federal government, provincial education departments and schools will work together to organize special Parent-Teachers-Students Days ("School Days") on which food staples, including wheat rations of 50 kg per bag, will be distributed to families four times between now and April of 2010. These "take home" rations will serve as an incentive to encourage families to keep children in school and out of work.

Under the WFP School Food Program, families that keep their children enrolled in school will receive four liters of edible oil.

In addition, WFP and UNESCO will add wheat distribution to this program. On "School Days" parents will go to the selected schools, receive training in basic health practices and the effective use of the food rations, and be encouraged to keep their children enrolled in school.

 

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54 mega projects: Friends of Pakistan help sought ​

ISLAMABAD (February 27 2009): Pakistan has sought assistance from Friends of Pakistan (FoP) for 54 mega development projects, including 8.4 billion-dollar Diamer Bhasha dam, and Neelum Jhelum hydropower project. According to the sources here on Thursday, a formal announcement for assistance may come in the next ministerial meeting of the FoP that the Japanese government has offered to host.

"Friends of Pakistan" forum, considered to be President Asif Ali Zardari's brainchild, was launched in New York on September 26, 2008 on the sidelines of the 63rd United Nations General Assembly meeting held in New York. The FoP membership consists of countries that are also members of the aid-to-Pakistan consortium, which was constituted in 1960 by the World Bank in an effort to facilitate co-ordination amongst the major assistance providers to Pakistan as well as for other debtor countries.

By 1991, the consortium held about 92 percent of Pakistan's outstanding disbursed debt. The aid-to-Pakistan consortium's members include the United States, Canada, Japan, Britain, Germany, France, and international organisations such as the World Bank and the Asian Development Bank. The FoP has four additional members, namely China, United Arab Emirates (UAE), Turkey and Saudi Arabia.

The second meeting of the FoP was held in Dubai on November 17, 2008 with Pakistan and the UAE joint hosts. At that time, the Pakistan government had submitted proposals for 71 projects, costing a total of 60 billion dollars, which was labelled by several "friends" of Pakistan as a wish list.

The government has since scaled down its expectations and has sent a list of 54 projects to the FoP, though the exact cost of these projects has not been made known. However, the Planning Commission is also working on identifying projects near completion for which funding is not available from the domestic resources due to paucity of funds.

This is in spite of the fact that Public Sector Development Programme (PSDP) was slashed by Rs 100 billion with an ongoing exercise to cut another Rs 70 billion. An important meeting was held in the Planning Commission on Thursday last and concerned ministries have been directed to prepare a list of the projects that are on the verge of completion.

The Planning Commission will soon hold a conference of concerned ministries to finalise the list of ongoing projects to seek assistance from the FOP, the sources added. The government has released only Rs 71 billion - 19 percent of the total allocation for PSDP - in the first six months of the current financial year due to financial constraints.

In a meeting held last Thursday, it was decided to seek assistance for Kachhi canal (phase11) and Rs 5.3 billion Khan-Khawar hydropower project from the FOP. The estimated cost of former project is Rs 3.12 billion and the government had allocated Rs 500 million in PSDP, whereas the PSDP allocation for the latter is Rs 1.1 billion.

The government has sought assistance for 8.4 billion dollars for Diamer Bhasha dam with an estimated capacity of 4500 MW power generation to Japan International Co-operation Agency (Jica).

The government has allocated Rs 200 million in the current year PSDP and is also seeking financing from other donors, including International development Bank (IDB)), China and Asian Development Bank (ADB). The sources said the government was focusing on the energy projects that could bail out the economy of the country. The energy crisis has hit the economy that could lead to reduction in growth rate.

According to the sources, Pakistan is also seeking assistance for Neelum Jhelum hydropower project from Saudi Arabia, UAE and China. The other main energy projects include 800 MW Gudu steam power project; 330 MW combined cycle Dadu power project; Golan Gol hydropower project and Munda dam.

 

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ADB agrees to finance Bhasha-Diamer Dam project ​

ISLAMABAD (February 27 2009): Asian Development Bank (ADB) delegation headed by its vice President Xiaoyu Zhao, called on Prime Minister Syed Yusuf Raza Gilani at the Prime Minister's house on Thursday and agreed in principle to finance Bhasha-Diamer Dam project. During the meeting, the Prime Minister said that Pakistan greatly values its partnership with development institutions particularly the ADB, which is a trusted partner and wants to have even better relations in future.

Appreciating the active support of ADB to Pakistan in the past, the Prime Minister expressed the hope that this co-operation would continue for helping the country to overcome the shortage of energy, water and food through construction of new dams and other related projects. He said that construction of farm to market road network, development of urban and rural areas, provision of equitable economic opportunities as well as improving the social sector particularly the health and education facilities are the foremost agenda before the government.

The Prime Minister said that the government is fully committed towards reducing poverty, increasing per capita income, generating more jobs and improving the living standard of the people. While assuring ADB's support to the democratic government, Xiaoyu Zhao informed the Prime Minister on the development activities undertaken by the bank in various sectors of the economy. He also commended the measures undertaken by the Pakistan's government for the improvement of economy. Minister of State for Economic Affairs, Hina Rabbani Khar was also present in the meeting.-

 

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Senator describes President's visit to China successful ​

KARACHI (February 27 2009): The Senate member-elect from Sindh and former Advisor to Chief Minister, Gul Mohammed Lot has described the recent visit of President Asif Ali Zardari to China as of great significance in view of regional political situation and Pakistan's economic difficulties. He said the agreements reached for co-operation in various sectors during the visit would be of far reaching importance.

Talking to a delegation here Wednesday, he said that provision of technical and training assistance by China for wind power would prove helpful in overcoming prevailing power shortage in Pakistan. He feared that if ongoing power crisis were not averted, then thousands of people would be rendered jobless with closure of industrial units besides posing threat to further worsening of Pakistan's economic situation.

Besides wind power projects, Senator-elect Lot pointed out that co-operation in the field of agriculture and China's wholehearted assistance for improving Pakistan's food conditions would be of immense help. He informed that during the visit, in which Sindh Chief Minister was also a member of President's entourage, Sindh Province and Huan Province of China were declared "twin provinces"

He was of the view that Pakistan can attain further improvement by adopting Chinese technology in various sectors. He told the delegation that Thar Coal project will change the very fortunes of not only Sindh Province but also entire country and strengthen the economy and when economy will be strengthened many of the problems will automatically be solved.

 

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Speedy development of AJK and Northern Areas top priority: Kaira​

MIRPUR (February 27 2009): Federal Minister for Kashmir Affairs and Northern Areas Qamar-uz-Zaman Kaira has said that speedy development and progress of Azad Jammu & Kashmir and Northern Areas was the top priority of the government of Pakistan. In an exclusive interview to APP during his brief visit to an under-construction private-sector Muhi-ud-din Islamic Medical College in Mirpur late Wednesday.

The Minister said that the government of Pakistan was actively engaged, on priority basis, to ensure speedy progress of AJK and Northern areas. He said the completion of ongoing and upcoming development projects of public welfare in NA and AJK were the first priority of the federal government.

Kaira, who was accompanied by AJK Prime Minister Sardar Muhammad Yaqoob Khan during his visit to the town, said that the AJK Premier could better apprise of the tremendous measures being taken by the government of Pakistan for the speedy development of AJK aimed at to ameliorate the life style of the common man in the liberated territory. He said that Sardar Yaqoob could better apprise of the federal government's liberal contribution to ensure the speedy progress of AJK.

To a question about the execution of the construction work of already approved and federal government sponsored Benazir Bhutto Shaheed OPF Medical College in Mirpur, Qamar-uz-Zaman Kaira said that the OPF Medical college will soon be launched since it was the commitment of our Shaheed Quaid BB.

Kaira said that site for the OPF Medical College has yet been reserved and the building for the college has also been made available by the AJK government. He said that initial process for the construction of new blocks and renovation of existing building for the OPF Medical College has been started. He said that Overseas Pakistanis Foundation would bear all the expenditures of the construction work of this mega project which, he added, would start soon.

The federal minister said that at the first leg of the plan, it would be priority to kick off the curricular activities in Benazir Bhutto Shaheed Medical college through the renovation of the existing building.

Earlier, the minister visited the under-construction private sector Muhi-ud-din Islamic Medical College in Mirpur. He went round various blocks of the medical college and the boys and girls hostels constructed separately on huge area of land. Management of the college apprised the minister of the plan about the formal beginning of the academic activities in the college soon after the grant of accreditation by Pakistan Medical and Dental Council.

Chancellor of Muhi-ud-din Islamic University and Chief executive of Muhi-ud-din Islamic Medical college, renowned religious scholar and spiritual leader Allama Allah ud din Siddique also apprised the minister of the academic activities of all the campuses of Muhi-ud-din Islamic University in various parts of AJK including Mirpur.

 

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Pakistan to file claim for extension of EEZ ​

Saturday, February 28, 2009

KARACHI: Pakistan will file its claim regarding extension of its Exclusive Economic Zone (EEZ) by 150 nautical miles beyond the current 200 nautical miles limit in May this year.

This was stated by the Chief of Naval Staff (CNS), Admiral Noman Bashir. He was addressing a news conference here on Friday in connection with the Exercise ‘Aman 2009’ to be held in Pakistani waters from March 5 to 14.

The CNS pointed out that the survey of the area has already been executed and a summary in this connection has been agreed to by our law ministry. He said that according to his information the prime minister has also permitted the summary.

Admiral Noman said that he is in contact with Pakistan’s Ambassador to the United Nations, Hussain Haroon. He pointed out that the requirement at the United Nations is that this extension of EEZ by 150 nautical miles is for those countries that have demarcated their sea boundary.

The CNS stated that the demarcation of Pakistani water boundary at south east with India has not been done. Therefore, it would now depend on the UN to approve the extension of EEZ by 150 miles for Pakistan or for India.