Pakistan Economy - News & Updates - Archive

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ISTANBUL - Turkey's Zorlu Energy Group will build a wind power plant in Pakistan.
The Group stated on Wednesday that a letter of intent was signed with the Pakistani party for construction of the plant. In accordance with the letter of intent signed in Islamabad yesterday by the Zorlu Energy Group and the Pakistani Alternative Energy Development Board (AEDB), the plant will be built within the Gharo-Keti Bandar power complex.

The Zorlu Group will also generate electricity at the plant for the next two decades.

The first phase of the project is 50 MW, but it will have an expansion option up to 300 MW.

The project is expected to cost about 80-100 million USD.

 

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Saudi Arabia likely to invest $8-10bn

By Ihtasham ul Haque

ISLAMABAD, July 4: Saudi Arabia has indicated to make long-term $8-10 billion investment in Pakistan in four major sectors of the economy with a view to greatly enhancing bilateral cooperation between the two countries.

Official sources told Dawn on Monday that the Saudi authorities had expressed their willingness to promote Saudi investment in Pakistan's capital intensive projects. In this regard, they have identified infrastructure, power, petro-chemicals and agriculture sector.

Pakistan was told that equity worth about $800 billion was available in the kingdom which could be utilised in Pakistan and other regional countries. However, the Saudi government expected that Pakistan would ensure improved security situation and consistency in policies.

Sources said that both the governments had authorised Saudi Pak Investment and Agricultural Company to hold a 2-day investment conference in November in Islamabad aimed at exceedingly “facilitating" Saudi investment in the country.

Prior to the conference being termed as a "major event", Saudi Pak officials will hold road shows during the month of October in various cities of the kingdom.

When contacted a senior government official said that the Saudi leadership had assured to help improve Pakistan's perception in the world by promoting substantial Saudi investment in the country.

Asked about the size of the Saudi investment, he claimed, there will be "several billion dollars investment" as was assured by Saudi King Abdullah when he visited Pakistan in February this year.

Responding to a question, he, however, conceded that Pakistan would have to further refine its image along with offering competitive business environment in the country for attracting adequate foreign investment.

He said that Saudi Arabia was also expected to invest in gas pipelines and new oil refineries projects in Pakistan. A top-level Saudi delegation, comprising prominent industrialists and businessmen, had visited Pakistan in May last on the instructions of King Abdullah to identify areas for making new investment in the country, he said.

Saudi businessmen, he said, were also expected to invest in privatisation, real estate, hotel and tourism, industry, telecommunications and information technology (IT).

"The world is witnessing an oil boom these days, which is providing new opportunities to the Saudi investors to invest outside their county. And today we see new avenues for billions of dollars new Saudi investment in Pakistan", the official said.

He pointed out that more Saudi capital would now be flowing into Pakistan due to increasing political and economic relations between the two countries.

Saudi investors, the official said, would be offered required incentives to readily invest in Pakistan. In this respect, he referred to the avoidance of double taxation agreement signed between the two countries recently.

He said that avoidance of double taxation agreement would help attract more Saudi investment in Pakistan. But he said that Pakistan was also interested in signing a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC) -- a group in which Saudi Arabia is also represented. "If we sign that agreement, it will help us to attract substantial investment from the Middle East," he said adding that this will also help remove the existing 20-25 per cent duty in Saudi Arabia for Pakistani products.

The volume of trade between the two countries, he said, was largely expected to be enhanced in near future. Currently, the two-way trade is said to be about $4 billion, including the purchase of Saudi oil by Pakistan.

http://www.dawn.com/2006/07/05/ebr2.htm

 

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Wednesday July 05, 2006

Gilgit (Agencies) : President Gen Pervez Musharraf has launched 'Rozgar Pakistan Programme'. He said after the success of Khush-hal Pakistan Programme, the basic purpose of initiating “Rozgar Pakistan Programme” is to provide respectful way of earning to the unemployed youth and billions of rupees would be allocated for the success of this programme. President Musharraf also vowed a crackdown on extremism.

Addressing the first convocation of Karakoram International University here on Tuesday, he said that the dream of development and prosperity of country wouldn’t be realised without elimination of extremism and sectarianism.

Seeking mass support to combat the evils of extremism and sectarianism, Musharraf stressed that the people should come forward to play their role in combating these evils and ensuring development process, integrity and stability of country. He said the government was making all-out efforts for promotion of quality education in the country.


Musharraf said that soon the 57 universities of country would be inter-linked through fibre optic link. The digital libraries would also be set up in all the universities, he said. He announced a grant of Rs 50 million for the capacity building programme for universities, which has been extended for four years from two years. He said the employment programmme with budget worth billions of rupees would be launched after the success of Khushal Pakistan Programme.


Musharraf said that extremism was a threat to Pakistani society and there was a need to check it with tolerance and by spreading education.


He said Pakistan was rich in natural resources and it was important to develop human resource so that the country could move forward.


He said that Pakistan’s economy was an advancing and that the government had been making investments for ensuring a better future for the young generation. He underlined the importance of synergy between higher education and development and said the government had earmarked Rs 26 billion for higher education. He said the government believed in the policy of merit in all fields.


Earlier, the president gave away Masters degree to 124 students of IT, social and natural sciences.

Vice Chancellor Dr Azam, former dean Dr Saleem Khan and famous mountaineer Nazir Sabir were conferred special awards in recognition of their outstanding services.


Meanwhile, President Musharraf also inaugurated the Sust dry port, saying the high-altitude facility near Pakistan-China border would bolster bilateral commerce to new levels and also facilitate in realising Pakistan’s potential as hub of intra-regional trade.


“This landmark project is poised to impart further depth and strength to Pakistan-China economic and political ties as well as help expand Pakistan’s commerce linkages with the regional countries including Central Asia states,” he stated at the inaugural ceremony of the port, jointly built by Pakistan and China.


President Musharraf spoke of Pakistan’s central geo-strategic location at the heart of regions including Western parts of China, Central Asian states, Afghanistan, Iran, India and the oil-rich Gulf countries and envisioned a pivotal role for Pakistan in augmenting trade between them.


“Such is Pakistan’s geo-strategic strength — it would play a vital role in promoting trade between members of major regional groupings including SAARC, Economic Cooperation Organisation and Shanghai Cooperation Organization — trade interaction between the regional countries has to take place through Pakistan,” he underlined.


Dwelling on the importance of the 10,000 ft-high Pakistan-China Sust Dry Port, the president said the state-of-the-art facility, an elaborate network of infrastructure being put in place across Pakistan and improvement in Korakoram Highway would provide China shortest access to the Middle East and other world markets through Pakistani deep sea ports including Gwadar.


Pakistan, he said, would become a trade and energy corridor for China and landlocked Central Asian countries.

“We are talking of Pakistan-China inter-connectivity in terms of energy and trade, improvement in the Korakoram Highway, development of railway link and gas and oil pipeline linkages and even fibre optics connectivity along the KKH under one project simultaneously will open up immense prospects of trade and economic growth,” he said.


The president said the completion of KKH was hailed as the eighth wonder of the world and added that, “we are capable of creating 9th and 10th wonders in the form of railway and pipeline linkages between Pakistan and China.” He also referred to strengthening of quadrilateral arrangement between Pakistan, China, Kazakhzstan and Kyrgyzstan while stressing the country’s importance in making use of regional opportunities for mutually beneficial economic growth.


The president was flanked by PML President Ch Shujaat Hussain, Secretary General Mushahid Hussain Sayed, Minister for Kashmir and Northern Areas Tahir Iqbal, and Advisor to PM Dr Salman Shah.


In local perspective, President Musharraf said the Sust Dry Port would open new vistas of employment opportunities for the people and lead to their socio-economic development.


“The government is committed to the uplift of the people of these beautiful areas and I am sure that the construction of Bhasha Dam, the widening of KKH and the commencement of services at Sust Dry Port would fetch tremendous gains to the local people and bring them at part with the developed parts of the country,” he said.


According to the officials, the dry port has the capacity to handle 40 Chinese containers a day and this would be increased to 400 containers per day in the future.


Meanwhile, Musharraf said that the Armed forces are being equipped with modern weapons to ensure a strong defence.

The President was addressing army officers and Jawans at Domail in the Northern Areas. He said the country’s defence is in safe hands and in this respect referred to the induction of fighter planes JF-Thunder-17 and the naval frigates.


The President underlined the importance of defence preparedness and asked the officers and Jawans to maintain high professional standards. Referring to tribal areas, he said the miscreants would be weeded out and the writ of the government established. He said the role of the political agents would be strengthened in the tribal areas. He said the development projects would be completed in Balochistan. Later, the President also visited fairy meadows, a beautiful site in the Northern Areas.


Addressing the local people, he said that the government is paying attention to the development of the Northern Areas. He said the government is working to promote of tourism in the Northern Areas. The president announced one million rupees for the area.

 

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Tuesday July 04, 2006

LAHORE: Chief Minister Chaudhry Pervaiz Elahi on Monday said the Software Technology Park (STP) would annually generate economic activity worth Rs 9 billion besides creating 10,000 jobs.

At the ground-breaking ceremony of the STP2, he said the park would cost Rs 1.5 billion. He added that the latest facilities of international standards would be provided at the STP — the first of its kind in Pakistan.


He said the services of renowned construction experts of Singapore had been acquired to build this 15-storeyed building on Ferozepur Road. He said it would play a pivotal role in promoting IT in the country.


He said the project reflected the vision of President Pervez Musharraf to eradicate unemployment from the country. He said the STP would attract local and foreign investors in IT and Telecom sectors. He said the Punjab government would provide offices and shops to investors on lease at very low charges.

 

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ISLAMABAD (July 06 2006): The Asian Development Bank (ADB) has signed $42 million loan agreement with Pakistan for Federally-Administered Tribal Area (Fata) Rural Development Project designed to reduce incidence of poverty in the far-flung areas of the region.

Sources told Business Recorder here on Wednesday that the project has been under discussion since 2002 as there were differences on its design and execution among the Asian Bank, Fata Governor's Secretariat and Ministry of States and Frontier Regions (Safron) that delayed the project.

But, the most important hurdle was that both Fata Governor's Secretariat and Safron were pressing for the execution rights for the project. Previously, the Fata Governor's Secretariat was eager to execute the project independently without the involvement of Safron.

The Asian Bank then demanded of the Secretariat to make it clear that it is independent in terms of utilisation of aid given by the international financial institutions (IFIs) or donor agencies. Besides, it also expressed some reservations regarding the design and details of the project.

After a series of meetings with Fata administration, sources said the issue has been settled and the project's PC-I is in hand. And now they have agreed that the executing agency would be Safron, while the Fata Governor's Secretariat would be the implementing agency for the project, they added.

Sources said this is a soft loan to be extended from the Bank's Asian Development Fund (ADF). The project is to be launched in three northern agencies, Bajawar, Mohmand and Khyber and expected to be completed by end June 2011.

Objectives of the project are to improve the productive potential of participating watersheds and their associated natural resource base. It would strengthen the planning, implementation and management capacity of the communities in the project areas for participatory involvement in management and maintenance of assets emanating from local development programmes.

It would also contribute to the efforts being made for reducing incidence of poverty among the rural population by increasing income and employment opportunities through a mix of economic and social intervention, the sources said.

The project has three main components ie management of integrated resources; community infrastructure and the project planning and support.

INTEGRATED RESOURCE MANAGEMENT: Under this component, the project would help boost farming system and crop production through improved seed technology, training in integrated farm management and adaptive research; livestock and fodder development by providing training and knowledge transfer on animal nutrition and animal husbandry practices at the community level. Besides, it would enhance community forestry and range management through rehabilitation and development of denuded community land through improved vegetative cover and building of technical, social institutional and entrepreneurial capacity of small farmers, including women.

COMMUNITY INFRASTRUCTURE: This comprises four components, including building ground/surface water resources assessment and management plan. Drinking water supply schemes would also be executed by construction of around 212 spring-fed gravity flow system, 624 dug well-based schemes, provide 31 tube-wells-based water supply system, construction of 135 hand pumps and Shalman-Landi Kotal water supply schemes located in Khyber Agency. It would also enhance small irrigation systems by rehabilitating 72 existing irrigation structures and construct 36 new structures besides, providing training to farmers for its construction.

It would also construct 130 check dams and introduce small ponds and few small dams for reservoirs to create storage for irrigation, improve water recharge and ensure water availability for livestock and other non-drinking water of the local communities.

Besides, it would also support improvement and construction of roads through training to village organisations. Construction of 120-km of low cost link roads and up-gradation of 72-km of existing roads would also be carried out.

PROJECT PLANNING, MANAGEMENT AND SUPPORT: Under this component, the project would provide project planning, management and other support services to facilitate its timely implementation. This include establishment and implementation of MIS that would link project executing agency, implementing agency, project management unit (PMU) and project implementation units (PIUs).

The project's total cost is $62.9 million. Out of which, the Asian Bank would provide $42 million from its ADF, and the remaining amount will be arranged locally. Safron is now the executing agency, source added.

 

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PARIS, July 5: France will help Pakistan in setting up a university of engineering and sciences in Karachi as the two countries have decided to enhance their bilateral economic, defence, scientific and educational cooperation.

Foreign Minister Khurshid M. Kasuri and his French counterpart Douste-Blazy, during their meeting in Paris on Tuesday, discussed the whole range of bilateral relations.

Expressing satisfaction over growing bilateral trade which has crossed $1 billion mark, Mr Douste-Blazy said that France was also encouraging its private sector to invest in Pakistan and leading French firms, including Carrefour, Alcatel and Renault were setting up or expanding their operations in Pakistan.

He congratulated Pakistan on its elections to the newly formed Human Rights Council and commended Pakistan’s role in peacekeeping operations, under UN’s arrangements around the world.

Mr Kasuri recalled Mr Douste-Blazy’s visit to Pakistan to attend the International Donor’s Conference in November 2005 and the substantial French contribution to earthquake relief and reconstruction efforts.

The French minister said his country would work on concrete projects for rehabilitation of quake-hit people. He appreciated the expanding cooperation between Pakistan and France in the field of higher education and said that France would help Pakistan set up a university of engineering and sciences in Karachi.

It may be recalled that the number of Pakistani students coming to France for higher education has jumped to 150 in recent past.

The two foreign ministers held in-depth discussions on the latest developments in Afghanistan, Iran, Iraq and the Middle East as well as on proposed UN reforms. Mr Kasuri highlighted the need for a more representative United Nations Security Council and for a consensus-based approach on related issues.

The French foreign minister accepted Mr Kasuri’s invitation to visit Pakistan at mutually convenient dates. The talks were held in cordial atmosphere.

MEDIA BRIEFING: Mr Kasuri held at a breakfast meeting with leading French media personalities including representatives of Le Figaro, Le Monde, Liberation, AFP, Reuters, Le Point, Le Journal du Dimanche, France-2 TV and Radio France Info.

He briefed media on the expanding relations between Pakistan and France in the areas of trade, investment, education, defence, and scientific and technical cooperation.

He also highlighted Pakistan’s contributions to the stability and development in Afghanistan and expanding commercial and development cooperation between the two countries.

On Jammu and Kashmir dispute, the minister briefed the media on the composite dialogue and confidence building measures between Pakistan and India.

He emphasized the need for a meaningful dialogue to resolve core issues including Jammu and Kashmir dispute.

Kasuri also highlighted Pakistan’s geo-economic importance as a regional hub for trade and commerce, particularly in the area of energy cooperation

 

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ISLAMABAD (July 06 2006): The Commerce Ministry feels depressed for not achieving the export target of $17 billion for fiscal year 2005-06, despite hectic trade diplomacy, even at the level of President Pervez Musharraf and Prime Minister Shaukat Aziz.

Sources told Business Recorder that provisional foreign trade figures for the whole year, compiled by Central Board of Revenue (CBR), were showing exports of $16.2 billion--$800 million behind the target. "What we can say is that exports are $800 million behind the target, which is disappointing," sources said. They said that imports remained far ahead of expectations, but did not give detailed figures.

Commerce Minister Humayun Akhtar was optimistic of achieving the target and in the last Economic Co-ordination Committee (ECC) meeting, he had assured that the target would be met.

Even the President had said that exports would touch $18 billion mark during 2005-06, but it remained a dream. About the new year's exports sources said that the target above $18 billion for 2006-07 was not rational and the concerned officials should take into account all factors before finalising the target.

Sources said that consultations with provinces and other stakeholders about trade policy for 2006-07 were in progress and Commerce Minister, who has already met Balochistan Governor Awais Ghani, and Sindh Governor and Chief Minister, would also hold meetings with the leadership of Punjab and NWFP in this connection.

According to sources, duty is expected to be reduced on raw materials of cottage industry, tanneries, textile, leather and footwear.

They said the proposal was also under consideration to allow import of second-hand construction machinery, airport handling machines, milk processing units and medical equipment. They said that announcement for enhancing trade with India was also expected as part of trade policy and, most probably, the positive list would be enlarged. However, they did not give the details.

They further said that a technology fund would also be established jointly sponsored by the Ministries of Commerce and Industries, and added that if any private sector company was interested in technology transfer, it would not only be encouraged but GoP would also contribute 50 percent share in this regard.

Export refinance scheme and long-term financing would also be made more business-friendly, and Commerce Minister Humayun Akhtar is expected to meet State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar shortly to finalise the proposals.

Sources said that establishment of Trade Development Authority of Pakistan (TDAP) would also be announced in the trade policy and in this regard a Presidential Order would be issued on July 19, soon after the announcement of the policy.

 

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ISLAMABAD (July 06 2006): Prime Minister Shaukat Aziz has constituted a committee comprising Planning Commission Deputy Chairman Dr Akram Sheikh, Secretary Ministry of Industries and Production, Kamran Rasool, and Chairman Central Board of Revenue, Abdullah Yousaf, to prepare a 10-year plan for the growth of local auto sector, Business Recorder learnt on Wednesday.

Sources said that the primary thrust of Pakistan Automobile Industry Development Plan (PAIDP) would be to encourage local manufacturers to increase investment by 100 percent to meet local demand and grab international market share through enhancing capacity.

A meeting recently, held in Prime Minister Secretariat, and attended by top brass of Ministry of Industries and Planning Commission, discussed in detail the PAIDP prepared and submitted by the Engineering Development Board (EDB) that led to formation of the committee to further look into its viability.

Under the plan, manufacturers will be given a target of 0.5 million cars and one million motorcycles production by the end of 2010-11. The plan will also address issues like delay in delivery of cars and bikes and suggests abolishment of illegal premium, which is an abhorred practice in the sector. The government has ensured the industry all-out support and return on investment but it would be required to enhance its capacity.

Meanwhile, representatives of the industry were of the view during the meeting with the EDB that import of used cars scheme and new entrants policy was a major concern for the local industry.

Sources said that the government wanted the industry to enhance its capacity and competitiveness as huge imports of vehicles has been disturbing the country's balance of payment. The production and sale details since 1995 show that local production of automobile was not enough to fill the demand-supply gap in the local market and the trend continues to widen during recent years.

Total local production till May 2006 of local industry in cars stood at 143,921 against sale of 140,071, whereas production of motorcycles, according to the officials of EDB, was around 600,000.

 

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KARACHI (July 06 2006): Pakistan and Poland have a long history of cordial relations and the trade volume of the two countries has almost doubled in the last two years and stands at $135 million in 2005 with the balance in Pakistan's favour.

This was stated by the Consul General of Poland in Karachi Ireneusz Makles while speaking at the launching ceremony of Pakistan-Poland Friendship Association (PPFA) at his residence here on Wednesday.

Ireneusz Makles said, "in my opinion there is a pressing need for such an organisation that can contribute to further develop and strengthen Pakistan and Poland's deep friendly ties". Such cordial ties already exist on the business and economic front in the form of Pakistan-Poland Business Forum, whose president is Fazal Karim Dadabhoy, he added.

He said Poland and Pakistan could benefit from each other due to their abundance of culture, customs and strategic geographical location. A beginning has already been made in trade relations.

"We have already established co-operation in the area of trade and commerce, energy, agriculture machinery, textile and many other sectors, he said and added that it is now time to take the friendship between the people of the two countries to a higher plain." "We wish to promote culture, education and tourism our countries among people of Pakistan and Poland,"

The Consul General said that Poland is the six greatest member of the European Union and for centuries culture and science have been the foundations of Polish-European presence. Poland has made big achievements in the field of culture and artistic events.

Polish music, literature, painting and film is well known not only in Europe but also world-wide. Poland has many historical monuments and is a land that has beautiful landscapes and the biggest and well-preserved lakes and forests. For us Poles - art and culture are just as important as the economy in building a society.

Simultaneously, he said, Pakistan also has many historical sites ranging from the ancient Gandhara civilisation to the monuments built by Mughals spread across the country. "Himalayas are very beautiful and many people from Poland would be interested to see", he added.

Speaking on the occasion, Chairman PPFA, Sharjeel Inam Memon said customs, manners, and traditional costumes reflect both eastern and western influences - including rich eastern ornamental styles and Islamic influences. Pakistan is famous for its rich culture. Pakistani culture can be called as mixed culture. Pakistani handicrafts are gaining popularity in the world market day by day, as Pakistani craftsmen are considered as the best in their craftsmanship. Pakistan is famous for its high standard items of glass, silver, wooden furniture, pottery, marble goods and things made of camel skin.

Many cultural practices, foods, monuments, and shrines have been inherited from the rule of Muslim Mughal and Afghan emperors in all of southern Asia.

Pakistan has in the' past been conquered and settled by many different peoples, including ElamoDravidians, Aryans, Greeks, White Huns, Persians, Scythians, Arabs, Turks, Afghans, Mongols and various Eurasian groups. There are regional differences in culture among the different ethnic groups in matters to bridge this gap between the Pakistani and polish culture.

He said the basic theme or this association is the promotion of all the cultural and artistic activities from both sides and to make the people of the both countries more closely.

To promote each other cultures, the PPFCA intends to arrange cultural programmes simultaneously that could be folk shows, cultural shows, language exchange programmes, exhibitions, dramas, theatre and tours etc. In this regard PPFA will send a delegation to Poland.

Fazal Karim Dadabhoy said on this occasion that the textile products are major exports from Pakistan to Poland, which are being exported through Turkey.

Meanwhile, the PPFA was formally launched and according to the announcement made by the Polish Consul General, Sharjeel Inam Memon would be the chairman of the association. Asif would be the Senior Vice Chairman, Imran Junejo and Mona Khalid, Vice Chairpersons, Nida Rasheed, General Secretary, Kamal Khan, Joint Secretary and Moghis Ishrat would be the Treasurer of the association.

 

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ISLAMABAD (July 06 2006): The Asian Development Bank (ADB) has signed $42 million loan agreement with Pakistan for Federally-Administered Tribal Area (Fata) Rural Development Project designed to reduce incidence of poverty in the far-flung areas of the region.

Sources told Business Recorder here on Wednesday that the project has been under discussion since 2002 as there were differences on its design and execution among the Asian Bank, Fata Governor's Secretariat and Ministry of States and Frontier Regions (Safron) that delayed the project.

But, the most important hurdle was that both Fata Governor's Secretariat and Safron were pressing for the execution rights for the project. Previously, the Fata Governor's Secretariat was eager to execute the project independently without the involvement of Safron.

The Asian Bank then demanded of the Secretariat to make it clear that it is independent in terms of utilisation of aid given by the international financial institutions (IFIs) or donor agencies. Besides, it also expressed some reservations regarding the design and details of the project.

After a series of meetings with Fata administration, sources said the issue has been settled and the project's PC-I is in hand. And now they have agreed that the executing agency would be Safron, while the Fata Governor's Secretariat would be the implementing agency for the project, they added.

Sources said this is a soft loan to be extended from the Bank's Asian Development Fund (ADF). The project is to be launched in three northern agencies, Bajawar, Mohmand and Khyber and expected to be completed by end June 2011.

Objectives of the project are to improve the productive potential of participating watersheds and their associated natural resource base. It would strengthen the planning, implementation and management capacity of the communities in the project areas for participatory involvement in management and maintenance of assets emanating from local development programmes.

It would also contribute to the efforts being made for reducing incidence of poverty among the rural population by increasing income and employment opportunities through a mix of economic and social intervention, the sources said.

The project has three main components ie management of integrated resources; community infrastructure and the project planning and support.

INTEGRATED RESOURCE MANAGEMENT: Under this component, the project would help boost farming system and crop production through improved seed technology, training in integrated farm management and adaptive research; livestock and fodder development by providing training and knowledge transfer on animal nutrition and animal husbandry practices at the community level. Besides, it would enhance community forestry and range management through rehabilitation and development of denuded community land through improved vegetative cover and building of technical, social institutional and entrepreneurial capacity of small farmers, including women.

COMMUNITY INFRASTRUCTURE: This comprises four components, including building ground/surface water resources assessment and management plan. Drinking water supply schemes would also be executed by construction of around 212 spring-fed gravity flow system, 624 dug well-based schemes, provide 31 tube-wells-based water supply system, construction of 135 hand pumps and Shalman-Landi Kotal water supply schemes located in Khyber Agency. It would also enhance small irrigation systems by rehabilitating 72 existing irrigation structures and construct 36 new structures besides, providing training to farmers for its construction.

It would also construct 130 check dams and introduce small ponds and few small dams for reservoirs to create storage for irrigation, improve water recharge and ensure water availability for livestock and other non-drinking water of the local communities.

Besides, it would also support improvement and construction of roads through training to village organisations. Construction of 120-km of low cost link roads and up-gradation of 72-km of existing roads would also be carried out.

PROJECT PLANNING, MANAGEMENT AND SUPPORT: Under this component, the project would provide project planning, management and other support services to facilitate its timely implementation. This include establishment and implementation of MIS that would link project executing agency, implementing agency, project management unit (PMU) and project implementation units (PIUs).

The project's total cost is $62.9 million. Out of which, the Asian Bank would provide $42 million from its ADF, and the remaining amount will be arranged locally. Safron is now the executing agency, source added.

 

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KARACHI (July 06 2006): The Chairman of Port Qasim Authority (PQA), Vice Admiral, Asad Qureshi has said that many mega projects are in the pipeline which attract an investment of at least $3 billion.

The PQA received an amount of $1.5 billion investment in various projects so far, he added. In a meeting with a four-member Japanese delegation from JETRO, JICA, Hiroyuki Miyakawa (DG JETRO) Kokyo Tamaki (Protect formation advisor JICA) and two consultants from IDCJ (International Development Centre of Japan), George Terahorca and Shigeki Kawahara visited Port Qasim here on Wednesday afternoon, stated in a statement.

The delegation evinced keen interest in infrastructure development related projects of PQA. Vice Admiral Asad Qureshi said, "PQA welcomes any foreign investment in the country and would facilitate all such investments at the port proximity".

The Port Qasim is undertaking development protects including deepening of navigational channel to maintain all-water 13.5 meters draft, LPG Terminal, Textile City, World Trade Centre, Waterfronts and Diamond Bar Island City. he said,, "To promote Industrialisation, the port has completed a major road network and other projects in its industrial area ninety-one industrial and commercial projects are already operative and 53 units are being constructed, he added. The share of Port Qasim Authority in sea borne trade increased from 33 percent to more than 42 percent in the financial year 2005-06.

As one of the largest revenue source, the PQA contributed more than Rs 71 billion in the form of duties and taxes, which contributed 10 percent of the total revenue receipts of the country.-PR

 

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ISLAMABAD (July 06 2006): The government has decided to install new scanning machines at all the international airports for speedy clearance of incoming and outgoing passengers' baggage. Sources told Business Recorder on Wednesday that the new baggage scanning equipment would be installed at the international airports of Karachi, Lahore and Islamabad.

In some cases, spare-parts would be replaced for proper working of the new machines, whereas new machines would be installed wherever necessary. They said the government has approved the procurement of new machines for these airports. They admitted that very old baggage scanning machines create problems for both the passengers and the customs staff. The passengers get irritated due to manual checking of the baggage, which resulted in extraordinary delay.

 

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Thursday, July 06, 2006

ISLAMABAD: The government plans to export 250,000 motorcycles in the current financial year and the Engineering Development Board (EDB) has asked the government to finalize the duty drawback facility for motorbikes’ export and incorporate it in the Trade Policy 2006-07, EDB CEO Imtiaz Rasgar told the Daily Times on Wednesday.

If the recommendation of the EDB was approved, large-scale export of motorcycles would begin from this fiscal.

The proposed export would earn foreign exchange of 150 million US dollars for the country, said the EDB vice chairman.

He said that the EDB is demanding nothing extraordinary in the coming Trade Policy. We simply want the government to grant the sector duty drawback facility, which is actually the right of any sector playing a role in the country’s exports.

Mr Rastgar said that the proposed export of motorcycles would be the first step towards the opening up of engineering sector for exports. This will also help the government to diversify exports, which are dominated by textiles having a share of around 70 percent in the total exports.

“The government has been striving for diversification of exports. In this regard, the EDB has sent its recommendation for taking steps on behalf of the government to encourage motorbikes’ export in the current fiscal,” he said.

The motorbikes’ export will encourage other industry in the engineering sector to play their role in increasing the exports of the country. We need to enhance our exports. For this the government must encourage the engineering sector, he added.

In the recommendation, the EDB has asked the Central Board of Revenue to return customs duties to the tune of 5-10 percent to the manufacturers on motorbikes’ export. They pay the customs duty on the import of raw material. This is a just demand of the manufacturers, an official said.

The government has the facility of duty drawback for exporters in various sectors. The government has been providing compensatory duty drawback facility on textile exports. Under the compensatory facility, the textile sector is paid more than they pay in customs duty on the import of raw material, the official said. “In other words, the government subsidizes the export of cotton goods,” the official said.

Pakistan produced more than 650,000 motorbikes in the last fiscal. In 2006-07, the motorcycle manufacturers are expected to manufacture over one million units as a result of expansion of the existing plants. According to a study of the EDB, Bangladesh, Afghanistan and the East African region could be potential markets for Pakistan-made motorbikes, the official said.

Motorcycles’ manufacturing is a success story in the country. The industry is fully capable of meeting the domestic requirements. It is also capable of competing in the international market as Pakistan-made 70CC motobikes are famous in the international market. This company has been in the export of motorcycles since long, the official said.

 

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Thursday, July 06, 2006



ISLAMABAD: The government of Pakistan has contacted the World Bank (WB) for $10 billion funding for the next 10 to 15 years to initiate hydroelectric projects.

The government has decided to initiate an annual $2 billion investment plan in hydropower, keeping in view the fast-growing economy of the country.

However, sources said it would be unlikely that the WB to would release such a large amount of funds. However, government officials are reported to be confident of success because the donor agency is impressed by Pakistan’s fast economic growth.

 

[Neo]

PARIS (updated on: July 06, 2006, 20:06 PST): Pakistan and France on Thursday expressed similarity of views on key international issues and agreed to further enhance co-operation in economic, defence and education sectors.

Foreign Minister Khurshid Kasuri who is on his first official visit to France, on the invitation of his counterpart Douste-Blazy spoke of the significance of his visit which covered many areas of co-operation.

"Pakistan and France have a very strong defence relationship. We discussed at length the co-operation in the past and the need to continue and strengthen that further," he said without divulging more details.

Kasuri said despite the tragic terrorist attack at Karachi in which a number of French defence engineers associated with the Agosta submarine project were killed, the response of French authorities was very encouraging.

Apart from the French Air Force, the Pakistan Air Force had one of the largest concentration of Mirage aircraft. The two countries are currently engaged in joint production of Agosta submarines.

Expressing satisfaction over his visit the foreign minister said there was concurrence of views between the two countries on major international issues like Palestine, Afghanistan, Iran's nuclear issue.

"We look at the world with more or less the same point of view," he said.

The foreign minister said the French officials also noted the "vitally important stabilising role of Pakistan in the Muslim world and the region."

On Iran's nuclear issue, Kasuri said Pakistan does not want a military solution.

"We have sensitivities as Iran is a friendly country ... we suffered immensely because of problems on our border with Afghanistan and we do not wish our border with Iran to come under similar strain."

Kasuri said in his meetings with people from all sections of society and senior government officials he briefed them about Pakistan's role in the war against terrorism.

"I explained them the real difficulties in Afghanistan" adding "they now have a better understanding of the situation."

He termed it a timely interaction, keeping in view the situation in Afghanistan and said he discussed at "great length what needs to be done to improve the situation."

He said Pakistan favoured the Bonn process, supported over four million refugees for 25 years and even today around 3 million were in the country.

Kasuri said Pakistan desired gas pipelines and trade to Central Asia through Afghanistan and therefore had a stake in its peace and stability.

"We want to increase our trade further with Afghanistan, which has grown by 7000 per cent to US 1.5 billion in the past few years."

He said there was a lot of interest in the role Pakistan was playing in Afghanistan.

France would be doubling its over 800 troops as it assumes security control of Kabul in August.

The foreign minister also emphasised on better intelligence sharing to control movement on Pakistan-Afghanistan border.

On the Middle East, Kasuri said both the countries had a similarity of views.

"The reaction of the Israeli forces is far too great ... it is disproportionate," the foreign minister said.

He said Pakistan was in favour of a two-state solution - a viable and independent Palestinian State living in peace with Israel.

"It is exactly the attitude of the French and they agree with Pakistan that the Quartet needs to play a more proactive role in trying to reach a solution," he added.

The foreign minister thanked the French government in education sector and for admitting 150 Pakistani students in its universities.

He said the French government has also agreed on setting up a university of Science and Technology in Karachi.

Kasuri pointed that in the past Pakistan only produced around 30 Ph.Ds in various science subjects annually while now it has an ambitious plan to have up to 5000 candidates in next five years.

He said a large number of French private sector companies were investing in Pakistan while the two governments were providing an enabling environment.

He said the trade between the two countries has already crossed US one billion dollar mark and leading French firms; Carrefour, Alcatel and Renault were setting up and expanding operations in Pakistan.

About President Musharraf's concept of Enlightened Moderation, the Foreign Minister said it envisages reformation within the Islamic world by attaining higher education in science and technology and gender issues, while the second prong calls for resolution of outstanding disputes like Palestine and Kashmir.

"They agreed for having a holistic approach to these problems," he added.

The French too, like Pakistan, believe on the need to address the root causes of terrorism, which he added was generally not found in some countries in Europe and West.

"The French feel the same way and it is a very sophisticated approach to foreign policy."

The foreign minister also met with President of the French Senate Christian Poncelet and discussed ways to reinforce the historical relationship between Pakistan and France.

Kasuri briefed him on situation in Afghanistan, Pakistan-India peace process and Iran-Nuclear issue.

In his discussions with the President of the National Assembly Jean-Louis Debre, foreign minister highlighted the great potential for upgrading the bilateral relationship to a strategic partnership.

Debre appreciated Pakistan's pivotal role in promoting stability in Afghanistan.

In a luncheon meeting with Vice President of Foreign Relations Committee Paul Quiles of the French National Assembly Kasuri stressed promotion of greater inter-faith harmony.

Quiles said France with its six million Muslims and Pakistan were uniquely placed to play an important role in this area.

The French parliamentarians also expressed keen appreciation of the need to address the problem of growing Islamophobia in the West. Kasuri said Pakistan and France were working together for promoting understanding between Islam and the West.

Foreign Minister addressed the prestigious French Institute of International Relations (IFRI).

Kasuri also invited his counterpart to Pakistan and said a French delegation will soon visit.