Pakistan Economy - News & Updates - Archive

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Pakistan on Britain’s priority list for trade ​

Thursday, May 07, 2009

LAHORE: UK Trade and Investment Director Robert Gibson has expressed optimism that trade relations between Pakistan and the United Kingdom would grow further in coming days as Pakistan is on Britain’s priority list for having enormous potential and opportunities.

He was speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Wednesday. Both sides discussed matters relating to expansion of bilateral trade, investment and economic cooperation especially investment climate in Pakistan in the wake of global economic crisis.

He said the UK was seriously working on further strengthening business relations between the two countries. Pakistan has a huge potential for foreign investment with rich human resource. He said that global recession could be tackled with collective approach and “there is a need that both the UK and Pakistani businessmen should work hand-in-hand to fight it out.”

Speaking on the occasion, LCCI President Mian Muzaffar Ali said that Pakistan was keen to have British investment that could provide transfer of technology and help it become a knowledge-based economy.

He said presence of around one million Pakistanis in Britain gives added strength to the traditional relationship. Above all, the UK is Pakistan’s largest trading partner within the EU and the second largest foreign investor. “We can understand that some of the Pakistani areas are critically suffering from security risks but these risks are confined to those areas alone.” The perception that the investors are shying away from Pakistan is no longer there, he added

Ali said that Pakistan has tremendous investment opportunities in the field of information technology, telecommunications, infrastructure, education and food preservation technology. He said that in this age when the world had shrunken into a global village, there is a dire need to learn from the experiences of each other.

Speaking on the occasion, the former LCCI President Mian Misbahur Rehman urged the UK official to ensure Pakistani entrepreneurs’ match-making in the UK as Pakistani merchandise are simply the best when are compared with goods belonging to other countries.

 

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Cabinet gives go-ahead to tractor scheme​

ISLAMABAD: Federal Cabinet Wednesday approved incentive worth Rs 4 billion for the launching of Benazir Tractor Scheme aimed at providing 20,000 tractors to the farmers at concessional rates.

The government would share up to 50 percent of the cost of tractor subject to a maximum of Rs 200,000 per beneficiary.

Federal Cabinet approved the revision of terms and conditions of the Deep Sea Fishing Policy with a view to maximise the benefits of deep-sea fishing and strengthen monitoring mechanism and earn foreign exchange.

Federal Cabinet met under the chairmanship of Prime Minister, Syed Yusuf Raza Gilani.

The farmers shall be provided subsidised tractors through a ballot system. In Punjab farmers owning land 5 acres to 50 acres, in Sindh and Balochistan farmers with 5 acres to 100 acres and in NWFP, AJK and PATA farmers with land holding of 2 acres to 50 acres shall be eligible to benefit from this scheme.

The total cost of Benazir Tractor Scheme shall be Rs 10 billion and it shall be implemented through Zarai Taraqiati Bank Ltd.

The Prime Minister directed the Ministry of Food and Agriculture to earmark special quota for Balochistan farmers.

The Cabinet approved the revision of terms and conditions of the Deep Sea Fishing Policy. This includes rationalising the royalty and license fee at the position of 1995 and declaring the Federal area between 12-20 nautical miles (buffer zone) as Zone-II and from 20-200 nautical miles as Zone-III.

These measures are anticipated to bridge the yield gap through increasing productivity, enhancing investment, improving foreign exchange, rationalising the structure vis-à-vis neighbouring countries, thus achieving economic growth as well as increasing fishing vessels operations in Zone-III.

ECC okayed rationalised gas import proposal, advising Ministry of Petroleum to seek Cabinet ratification and approval before signing said GSPA with Iran.

The meeting approved to start negotiations for an agreement on economic and technical cooperation with Egypt. The agreement is aimed at promoting cooperation among companies, public works sector and private sector of both the countries in establishing joint ventures and encouraging mutual investments in both the countries. This will also include granting scholarships in economic and technical fields on reciprocal basis.

The Cabinet gave approval for signing of an agreement between Pakistan and Cuba for the establishment of joint economic commission. Under the agreement, both sides will undertake feasibility studies to identify viable investment projects, exchange of specialists, granting of scholarships in specialised studies, etc.

The meeting granted ex-post facto approval for initiation of negotiations and approval for signing of MoU with Germany on cooperation regarding Clean Development Mechanism (CDM) project activities.

The MoU covers areas of cooperation in the fields of climate change, exchange of information and transfer of environment friendly technologies for renewable energy and energy efficiency. The Cabinet also ratified the decisions taken by the Economic Coordination Committee of Cabinet held on March 19, 2009.

 

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Budget for 2009-10: Govt to approve Rs 2.466bn for Ministry of Industries​

ISLAMABAD: The government is likely to allocate Rs 2.466 billion in the development budget for the Ministry of Industry and Production for 2009-10, sources told Daily Times here on Wednesday.

Last year the government allocated Rs 10.458 billion for the ministry in the annual budget 2008-09, which after financial constraints was reduced to Rs 2.529 billion. The new expected allocation of Rs 2.466 billion shows 76 percent less allocation as compared to last year’s allocation. Keeping in view the financial constraints, the sources claimed that the government was making rational allocations in the upcoming budget.

In the development budget for Ministry of Industry and Production, allocations would be made for 22 ongoing, four approved and 36 unapproved projects. Total number of development projects of the ministry was 62 and the final figure would be decided in the Annual Plan Coordination Committee meeting, scheduled to be on May 21.

Some of the ongoing important projects of the ministry are Clean Drinking Water for All worth Rs 15.843 billion, Clean Drinking Water Initiatives worth Rs 955.100 million, Sports Industries Development Centres Sialkot worth Rs 272.620 million, Women Business Incubation Centre worth Rs 31.220 million, Gujranwala Tools, Dies and Moulds worth Rs 878.040 million, 2MGD Water Desalination Project worth Rs.378.860 million, Ceramic Complex Guiranwala worth Rs 314.470 million, Foundry Service Centre Lahore with cost of Rs 150.040 million.

Other important on-going projects of the ministry are Product Development Centre for Composite Based Sports Goods Sialkot worth Rs 380 million, Development Projects of Pakistan Gem and Jewellery Development Company worth Rs 1.400 billion, Development of Marble and Granite Sector worth Rs 1.980 billion, and many others.

Apart from the above projects, the Central Development Working Party in its latest meeting approved six projects of the ministry. These projects are Agro-Food Processing Facilities Multan, Sports Industries Development Centre Sialkot revised, Foundry Service Centre Lahore Revised, Khadi Crafts Development Company (KCDC) Multan and Leather Crafts Development Company (LCDC) Multan.

Sources claimed that total 40 projects would be considered for allocation in the APCC meeting in which four projects were approved and 36 projects were unapproved.

Sources claimed that there was possibility that the number of projects might be increased in the coming APCC meeting because in democratic government public representatives would present more and more projects with the passage of time.

 

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Impact of Talibanisation on economy: 300 marble units in NWFP shut down, 250 on verge of closure​

* Mining, excavation activity halted in FATA, Mohmand Agency
* About 25,000 tonnes raw marble used to be excavated daily​

KARACHI: Mining and excavation activities of world-class quality marble and granite have stopped in Mohmand, Khyber, Bajour and Kurram agencies of Federally Administered Tribale Areas (FATA).

“The activities have become zero at the major zones where huge quantities of marble are extracted. These deposits have a great variety of colours and fabrics and thus have vast potential in international market,” an official of Pakistan Stone Development Company (PASDEC) said Wednesday.

All Pakistan Marble Mining, Processing, Industry and Exporters Association (APMMPIEA) expressed its concern over the slaying of one of its member, Habib Khan at the hands of Taliban Wednesday. “He was first kidnapped and then beheaded by the extremists, whereas hundreds of loaders, dozers, excavators and other vehicles have also been lifted by the Taliban,” APMMPIEA said.

Founder chairman and a senior member APMMPIEA, Sanaullah Khan said war on terror has disrupted the economic activities completely and the work on a marble city in Mohmand Agency has been stopped since the last couple of weeks.

He said around $5 million export orders from the Middle East have been cancelled so far and cancellation of hundreds of other export orders are on the cards due to zero supply of marble. “The government is also being deprived of income on lease of around Rs 1 million to Rs 1.5 million daily as the industrial activities at the mining sites were stopped.

He said development of infrastructure at the FATA’a first industrial estate on an area of 300 acres under PASDEC was also being affected. Nearly 200 manufacturing units of marble in Peshawar on Warsak and GT Road have been facing acute shortage of raw material and are expected to shut down within a couple of days, he added.

Khan said similarly, in Mardan around 100 marble units have been shut down and around 15,000 direct employment has been rendered jobless. He said nearly 250 industrial units in Buner and 50 in Mingora have been closed down while 50 units in other parts of the affected area were also not functioning since disruption. Around 20,000 skilled and semi-skilled manpower in Buner and around 35,000 indirect employments at allied industries have been laid off. The government has set an export target $500 million to be achieved by 2013 from export of marble and granite.

But due to war on terror, the marble and granite sector, serving as an engine of development, economic growth and poverty alleviation with more than 7,000 million tonnes of good quality marble ranging from super white, silky and grey varieties exist in Mohmand, Khyber and Bajaure agencies, was facing total hardship. He said in Ziarat FATA, good quality of marble mines exists and the government has started extraction from there.

 

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Germany to consider Pakistan its preferential trade partner​

ISLAMABAD: Germany is prepared to consider Pakistan as its preferential trade partner, Industries and Production Minister Manzoor Wattoo told Prime Minister Yousuf Raza Gilani on Wednesday. Briefing the prime minister on his visit of Germany, Wattoo said the German Chamber of Commerce would exchange delegations with its Pakistani counterpart on reciprocal basis to enhance trade and bilateral relations.

 

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Pakistan may receive $8 billion aid against expected $14 billion​

ISLAMABAD (May 07 2009): Pakistan may receive only $8 billion foreign assistance against the expected requirement of $14 billion, facing a shortfall of $6 billion during the current fiscal year. As per an International Monetary Fund (IMF) estimate noted in a press conference on 25 November 2008, Pakistan's financial requirement for 2008-09 was $13.4 billion.

But sources in the ministry of Finance, on condition of anonymity, revealed to Business Recorder on Wednesday that approximately $8 billion will be made available till the end of the current fiscal year. The major portion of this amount $3.947 billion to date is sourced to the $7.6 billion dollar IMF stand by arrangement. In the current year an additional 800 million dollars will be received from International Monetary Fund (IMF) and the remaining $3 billion from other International Financial Institutions (IFIs) and bilaterals.

Pakistan received $5.668 billion foreign loans during the first nine months of 2008-09. Out of this an amount of $3.947 billion has been released by IMF so far with $3.1 billion as first tranche of the standby arrangement in November 2008, and $847 million on March 31 as the second tranche. The remaining $1.721 billion was received from other donors, including World Bank and Asian Development Bank (ADB). IMF is expected to release another tranche of $800 million during the current fiscal year while an additional $1.3 billion from IFIs is also expected to be released within the current fiscal year.

Former Senior Vice President of WB Shahid Javed Burki said that Pakistan would require $12 billion every year for at least the next five years from external sources to meet its financing requirements. Pakistan is expecting to receive $14 billion assistance in the next two years from different sources which include: $3 billion from Kerry Lugar bill, $5.2 billion from Friends of Democratic Pakistan, $2 billion each from World Bank and Asian Development Bank (ADB) and $1 billion each from Islamic Development Bank (IDB) and DFID.

There are serious concerns amongst the policy makers as to how much of the pledges made so far would transform into money in the federal kitty. After the devastating earthquake of 2005, when there was much international sympathy, about $6 billion pledges were made yet these pledges were not all changed into reality. Thus the government would do well to tamper its expectations of the recent bilateral pledges and focus on raising domestic revenue through bringing the untaxed sectors into the tax net, analysts are urging the government.

Burki said Pakistan would require $60 billion external financing in the next five years, arguing that the government must bring more untaxed sectors into the tax net, including agriculture and stock market for revenue generation. He maintained that government would have to enhance revenue collection by bringing it to 15 percent of GDP during the next five years. He opposed slashing development budget, and urged that development budget for the growth oriented sectors should be enhanced.

Dr Ashfaq Hassan Khan, former advisor in ministry of Finance, said it would be a major challenge for the government to achieve fiscal deficit target on the face of massive revenue shortfall. The government will bridge the fiscal difference through PDL this year but it may not have the space of PDL by next fiscal year as the petroleum prices are again on the rise. He said the real problem would be for the government to achieve the target of 3.3 per cent fiscal deficit by next year as committed to the IMF. To a question about Friends of Pakistan pledges, he said it would entirely depend upon the government how it pursues the pledges.

 

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Sharp fall in export put pressure on external balances, complicate growth recovery: World Bank​

FAISALABAD (May 07 2009): Pakistan's macroeconomic imbalances are rooted in the sharp rise in international prices of oil and food in 2007-08, combined with policy inaction and internal political turmoil.

To avoid a balance of payments crisis and default on foreign debt payments, the authorities developed the stabilisation program, which was supported by the IMF through a 23-month Stand-By Arrangement (SBA) in November 2008, said an updated report of South Asia Poverty Reduction and Economic Management Unit (SASEP), World Bank.

According to the report, the program includes a medium-term macroeconomic framework (MTMF), with fiscal and monetary tightening to bring down inflation and reduce the external current account deficit to sustainable levels. At the first quarterly review of the SBA in February 2009, the stabilisation program remained on track.

GDP growth in Pakistan's export markets is likely to fall sharply in 2009, which would translate into a starker-than projected decline of Pakistan's export growth in the medium-term, put pressure on Pakistan's external balances and complicate growth recovery.

Risks to the domestic financial sector may increase, and it seems almost certain that even the downward-revised revenue target will not be met in this fiscal year. Stringent implementation of the government's IMF-supported economic stabilisation program will be critical to success, and timely responses of fiscal and monetary authorities to emerging risks will be essential to ensure it remains on track.

WB report revealed that the rapid decline in international commodity and oil prices since August 2008 has reduced the risks, and facilitated improvement in the external position and the achievement of set targets. However, given the global economic crisis, the medium-term outlook presents significant downside risks.

The sharp deterioration in the global economic and financial outlook poses significant risks to exports, remittances and external financing. Even though projections in these areas as well as forecasts about the speed of real economy recovery were significantly moderated during the first programme review in February 2009, they may still turn out to be optimistic.

Over the last few months, WB report stated that the stabilisation efforts together with a decline in international commodity prices have succeeded in reducing external imbalances, rebuilding foreign exchange reserves, narrowing fiscal overruns and lowering inflation.

However, the sharp deterioration in the global economic and financial outlook poses significant risks to exports, remittances and external financing. Even though projections in these areas as well as forecasts about the speed of real economy recovery were significantly moderated during the first program review in February 2009, they may still turn out to be optimistic.

For example, economic growth countries to which Pakistan exports is likely to continue to fall sharply in 2009, which would translate into a decline in Pakistan's export growth, put pressure on Pakistan's external balances and complicate growth recovery. The risks to the domestic financial sector may increase. The medium-term revenue projections are ambitious and will be difficult to meet.

The March 2009 Federal Board of Revenue tax collections fell short of the downward revised revenue target. This highlights the need for a rigorous implementation of reforms, while protecting core development spending, in particular social spending, to ease the adjustment for the poor and vulnerable people.

Stringent implementation of the economic program will be critical to success, and timely responses of fiscal and monetary authorities to emerging risks will be essential to ensure it remains on track. In the current economic environment, any medium-term projections are uncertain and regular adjustments are necessary in response to changed circumstances.

Given the global economic crisis, WB report revealed that the medium-term outlook presents significant downside risks. The external environment is expected to deteriorate further, with global growth turning negative and a gradual recovery starting only 2010.

In the government's revised MTMF, Pakistan's real GDP growth is projected to remain low in 2008/09 and 2009/10, and increase gradually from 2.5 per cent in 2008/09 to 6.5 per cent by 2012/13, although longer-term projections are particularly uncertain in view of the volatile global economic environment.

Aided by increasing public investment-among other things in infrastructure, power, and transport-gross capital formation is projected to rise and contribute to growth recovery and facilitate private sector activity. In parallel, gradually increasing private sector credit growth is projected to help economic activity.

Agriculture is showing good growth prospects, while manufacturing and services are expected to recover only gradually as the domestic aggregate demand picks up and the availability of power improves as a result of investments in power generation. With the global recovery, exports are also projected gradually improve and reduce Pakistan's external vulnerability.

The government's revised macroeconomic framework targets projects a decline in the fiscal deficit (excluding grants) from 4.3 percent of GDP in 2008/09 to 2.3 percent of GDP in 2012/13. The cornerstone of this outlook is a significant increase in Federal Board of Revenue tax revenues, which are projected to rise by 3.1 percentage points of GDP to 12.7 percent of GDP by 2012/13.

Excluding grants, overall revenues are projected to rise from 14.3 percent of GDP in 2007/08 to 17.3 percent of GDP in 2012/13. To meet the ambitious revenue targets, WB report observed that the authorities consider implementing bold and comprehensive tax policy and administration reforms. This would include quick and decisive implementation of value-added taxation (VAT) of goods and services, elimination of tax exemptions and zero-ratings, and revamping of the tax administration.

This would be the key measure to expand the tax base and revenues, since currently services, which account for about 60 percent of GDP, currently remain outside the tax net. In the meantime, as part of the 2009/10 budget, the government may adopt significant legal changes to the current General Sales Tax (GST), moving it closer to VAT by minimising exemptions and zero-ratings, and thereby broadening tax base and revenues. Significant untapped revenue potential remains also at the provincial level, which would warrant attention.

Owing to this sizeable revenue effort, total expenditures are projected to slowly climb back to about 20 percent of GDP in 2012/13. In line with current projections of low oil and commodity prices, and following the elimination of power and fuel subsidies and maturing of the remainder of high interest-yielding Defence Savings Certificates, current expenditures will decline as a share of GDP and make space for a steady increase in development spending from 3.2 percent of GDP in 2008/09 to 5.6 percent of GDP in 2012/13.

According to WB report, the external current account deficit is projected to decline to about 4.2 percent of GDP by 2012/13. Foreign exchange reserves are expected to build-up from $9.1 billion by end-June 2009 to about $11.9 billion by end-June 2012/13. The sharp decline in international commodity prices, reduced private sector credit growth, and the economic recession are expected to curtail import growth in 2008/09 and 2009/10.

Exports are projected to start recovering from 2009/10 onwards with gradual global recovery and imports from 2010/11 onwards, but the growth of both remains moderate during the medium term. Remittances are projected to grow over the medium term. Foreign direct investment, after a drop in 2008/09, is projected to start gradually recovering in 2009/10 with the re-launch of the privatisation process, and portfolio flows are predicted to turn positive only from 2010/11 onwards.

In the medium term, increased productivity and export competitiveness are necessary to generate growth and reduce external vulnerability. To this aim, structural reforms to strengthen the investment climate and competitive environment are required.

These will include measures to ease firm entry and exit, reduce barriers to competition and trade, and enhance the labour market flexibility. In addition, efforts to improve the financial sustainability and efficiency of the power sector will be essential to attract investment in new power generation, WB report maintained.

 

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Construction sector contributes only two percent to GDP​

LAHORE (May 07 2009): Pakistan's construction sector has been contributing not more than 2 percent to the Gross Domestic Product (GDP) while, in other regional countries the industry contributes at least 5 to 10 percent to the GDP, sources in Planning and Development (P&D) Board said.

The construction sector has often been used to stimulate economic activity in countries because of the numerous forward and backward industry linkages. In Malaysia, for example, during the financial crisis during the late 1990s, the construction sector was used to jump-start the economy through demand-side interventions.

The sector has clearly been neglected and remains underdeveloped in Pakistan and sector inefficiencies are costing the economy dearly, added the sources. It may be noted that the government plans a sizeable amount of investments in infrastructure over the next decade; Medium Term Development Fund (MTDF) envisages a total investment of Rs 2162 billion for federal PSDP.

This planned PSDP expenditure during 2005-2010, is roughly three times the development expenditure during 2000-2005. Rs 993.2 billion (or nearly half of the PSDP for 2005-10) will be invested in the improvement of physical infrastructure alone, compared to an investment of about Rs 278 billion during the past five years.

An additional Rs 405 billion investment in roads, airports, ports and power projects is expected from public and the private sector. However, it is believed that industry stakeholders will be unable to deliver without institutionalising reforms.

The construction industry, on the other hand, has pointed out that the major gaps lie in the ability of the government to plan for the long-term and implement such plans and appropriately budget for the projects taken up in the development portfolios. According to these circles, the allocation of funds is not made as required for timely completion of the projects and funds that are allocated are not released by the federal government or by the provincial finance departments as per the requirements of the project implementation schedules.

Most funds allocated to a project are released in the last quarter of the financial year. Federal and provincial allocation rates for projects have been low enough to imply an average completion time of 6 and 12 years for road projects, respectively, and 18 years for irrigation projects, they added.

In addition, the client agencies are weak and lack capacity in procurement, project administration and management of their own sectoral portfolios and projects, resulting in delays in decisions, payments made to consultants and contractors and rampant interruptions in overall projects implementation.

But the contractors also suffer from a lack of professional management, and access to credit and financing. They often operate equipment and machinery which is old, with inadequately trained operators resulting in low productivity level. There are demand-supply gaps in construction material resources and the industry has to face rapid escalation in prices, which is not adequately compensated for or in many cases with no compensation at all.

Similarly, consulting firms are weak and lack the required technical skills to take on major infrastructure projects, are poorly compensated for intellectual inputs, and are given unrealistic time to carry out detailed designs which results in sub-optimal designs and incorrect cost estimates.

Both the contractors and consultants have to accept contracts, which are biased towards the clients and also face unfair competition from state-owned enterprises and parastatal firms.

This distorts market competitiveness and hampers private sector growth. The industry suffers from a shortage of adequately qualified, trained professionals and skilled human resource at all levels and amongst all stakeholders. A continuous brain-drain of qualified personnel to regional countries exacerbates the demand-supply gaps in human resources.

 

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Plan to make AJK self-sufficient in power production​

MIRPUR (May 07 2009): An integrated broad-based plan has kicked off by AJK government to make Azad Jammu and Kashmir a welfare model state, official sources said. The sources told APP here on Wednesday that since AJK government intends to make AJK self-sufficient and self-supported in power production during next three years period, the state electricity department has launched at least 20 hydel power projects in a year.

The projects are aimed not only to meet the local needs of energy but also to supply power to various parts of the country in next three years. The sources said various public-sector institutions including industries and commerce, tourism, education, health, communication and public health departments were being expanded to achieve the task.

It may be added that under the public sector uplift programme, colossal funds have been allocated for uplift schemes for constituencies of Kotli, Bhimber and Mirpur district of Mirpur division.

The development funds have been equally disbursed for the development projects in all the electoral constituencies through the members of the AJK Legislative Assembly hailing from the concerned constituencies. All the projects will be completed by the end of ongoing financial year 2008-09, the sources added. The plan would help elevate and improve the lifestyle of the common man besides providing latest basic facilities of life to the people of AJK.

 

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'Country needs big dams to overcome energy crisis'​

LAHORE (May 07 2009): Former Chairman Water and Power Development Authority (Wapda) and Former Federal Minister Engineer Tariq Hamid has said that country needs big dams to over come the energy crisis. He was addressing the 1st Engineering Exhibition organised by the Institution of Engineers Pakistan (IEP) on Wednesday.

He said that small rental power plant is not the solution for overcoming the energy crisis because they are producing expensive electricity. He also said these rental power plants are temporary arrangements and could not be beneficial in the long run.

He stressed the need of the construction of dams because they are capable of producing 2000 to 3000 MW of cheap electricity. He also said that there is a need of creating awareness among the people about the saving of the electricity Hamid said that government should give incentives to the manufacturers of the electric appliances this will create jobs in the country as well as people will get cheap electricity products.

President IEP Aftab Islam Agha said that more then 22 companies of electric products have established their products in the exhibition. He said that such type of exhibitions should be helpful in boosting the economic activity. He also said that they are planning to organise such type of exhibitions in other cities of the country also.

 

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Poverty swells to 40pc: Sardar Aseff ​

Planning Commission deputy chairman says; $5.28bn pledges made at Tokyo donors moot are all grants​

Friday, May 08, 2009

ISLAMABAD: Poverty in Pakistan has increased to 40 per cent and every second citizen is living below the poverty line, which is an alarming development, Deputy Chairman Sardar Aseff Ahmad Ali said on Thursday.

He was talking to media persons after the conclusion of a one-day workshop on ‘Results of Social Health Protection Mapping and Health Financing.’

“Although there exists some controversy over poverty figure, but it ranges somewhere between 38 and 40 per cent as per World Bank estimates,” he said.

When asked as to when the World Bank has come up with the latest estimates about poverty incidence despite the fact that World Bank has just initiated a poverty census in certain districts of the country to ensure the distribution of the amount under Benzair Income Support Programme transparent, Ali responded and stressed that the poverty hovers even more than 40 per cent in the country.

“I’ve read the document of the World Bank according to which the poverty has increased. However, the final figure would be furnished once the poverty census process that the World Bank has initiated gets completed,” he said.

He said this year 3.5 million households will get the benefit of the Benazir Income Support programme and next year the number beneficiaries will increase to seven million households.

Deputy Chairman of the Planning Commission unveiled that all the pledges amounting to $5.28 billion made in the donors moot in Tokyo are 100 per cent grants as per his preliminary information.

Regarding social sector spending, he said the government is about to come up with the 10th 5-year plan that is to be named Peoples Five Years Development Plan.

Under the plan human resource development programme will be kicked off and to this effect the government will establish 127 training and vocational centres in every district. And after five-year time, Pakistan will have 2.5 million skilled workers every year. The expertise of the said skilled workers would not be less than international standards.

This will increase their capacity to earn more that will help erase the regional and economic disparities.

Sardar Aseff Ali appreciated Germany based NGO GTZ for completing the survey of National Heath Accounts in Pakistan saying it has dispelled the impression of some of the world organizations that Pakistan’s spending on health sector has always been very low.

 

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More Pakistanis to be sent abroad for work​

Friday, May 08, 2009

KARACHI: Bureau of Immigration Director-General Muhammad Ummer Morio has said that the number of Pakistanis working abroad could be substantially increased by producing more skilled manpower in the country.

He was speaking at a reception in his honour hosted by the FPCCI Standing Committee on Aviation, Chairman Muhammad Yahya Polani and Pakistan Overseas Employment Promoters Association (POEPA) Chairman Hanif Rinch.

He said that the government is taking all possible measures to widen the existing network of private establishments involved in manpower training in the country. He said that about 0.43 million Pakistanis were provided overseas jobs by the Bureau in 2008.

He said that tenders for three new projects worth $800 million had been offered by Saudi Arabia and hoped that this would open new vistas of employment for Pakistanis.

Morio further disclosed that the Bureau of Immigration would be sending skilled manpower to Africa, Eastern Europe and Italy in the coming years. “With this end in view, we are restructuring the Bureau and will soon be able to focus more effectively on value-addition of Pak labour,” he added.

Polani lauded the Bureau of Immigration’s efforts to promote overseas employment and expressed the hope that its re-structuring would go a long way towards helping the government deal with the ever-increasing unemployment and inflation in the country.

He said that in order to reduce unemployment in the county, the government should fully capitalise on employment opportunities abroad for Pakistanis.

POEPA Chairman, Hanif Rinch said that the number of training centres imparting skills to people in the country was being raised in order to send more manpower overseas.

 

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Pakistan opens railway industry to private sector ​

Friday, May 08, 2009

KARACHI: Pakistan invited expressions of interest on Thursday from companies for running private train operations, as it seeks to open up the railway industry which has been a state monopoly.

The Ministry of Railways has asked private firms and consortia to submit their EoIs for running passenger and freight trains on the existing infrastructure by May 25.

This is the first time the government has moved to open up the railways to the private sector, although private airlines are allowed to operate.

“The selected train operating companies may use various railway routes, yards ... etc on mutually agreed terms and conditions,” the ministry said in a newspaper advertisement.

Agreements would initially be for 20 years, and operating companies would be required to procure and mobilise their own rolling stock and locomotives, it said. A government official, requesting anonymity, said at least two local companies have expressed interest in the project. “We are hoping that they will be able to arrange for a tie-up with some foreign company as well,” he said, adding that the project could see investment of up to $300 million.

 

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Trade between Pakistan and China exceeded $7 billion during 2008​

ISLAMABAD (May 08 2009): Chinese ambassador to Pakistan Lou Zhaohui has said the annual trade between Pakistan and China surpassed $7 billion during 2008 and the figure will reach $15 billion by 2011. He stated this while talking to journalists after addressing the business community at Islamabad Chamber of Commerce and Industry (ICCI) here on Thursday.

He said that Sino-Pak time-tested relations would be taken to new heights by bolstering the already cemented mutual ties between the two friendly countries and establishing a long-term strategic relationship with Pakistan is the top priority of China.

Earlier addressing the business community at ICCI, he said that China shared 600-km long common border with Pakistan due to which the two countries had many similarities in their civilisations and cultures. He said Pakistan was the first country in South Asia that signed FTA with China to further deepen bilateral trade and economic relations. "China has always helped Pakistan in need of the hour whether it was to overcome banks deposits problems, AJK earthquake, Pakistan satellite programme etc", he added.

He said that over sixty Chinese companies were operating, 122 Chinese projects are going on and about 10,000 Chinese engineers are working in Pakistan, which shows China's commitment to make Pakistan's economy stronger. China is also interested in enhancing co-operation in hydero electricity projects, agriculture sector and other areas with Pakistan, he said, adding that it wanted an economically strong and prosperous Pakistan for further expanding economic relations.

He said during three trips of President Asif Ali Zardari to China, lot of agreements and MoUs were signed to take our bilateral relations to further heights. He invited Pakistani businessmen to increasingly participate in Kashgar and other trade fairs held in China from time to time for exploring new opportunities to enhance bilateral trade and investment.

ICCI president Mian Shaukat Masud said China is Pakistan's strategic partner and our relations are based on mutual trust and unanimity of views on important regional and international issues. "These close relations were strongly supplemented and supported by the people and businessmen of both the countries. The friendly co-operation between Pakistan and China was a model of good neighbourly relations based on the principles of peaceful co-existence", he added.

Exchange of business delegations and holding of single country exhibitions could boost the bilateral trade, he said, adding that the marketing tools needed to be studied by the chambers and the diplomatic missions of the two countries. He said people-to-people contacts and exchange of students would give further boost to our friendly relations between the two countries. He suggested for issuance of long term business visas to regular Pakistani businessmen with China.

 

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US approves additional $1.9 bln in aid to Pakistan ​

Friday, May 08, 2009

WASHINGTON: The US Congress Committee has approved $1.9 billion in additional assistance to Pakistan, Islamabad ambassador to Washington Hussain Haqqani said on Friday.

Speaking to media persons here, Haqqani said: “The United States wants enduring bilateral ties with Pakistan.”

Terming the approval of $1.9 billion by the US committee a great success, he said that it was a proof that America wants better relations with Islamabad.

“We have told the US that no compromise will be made on the country’s sovereignty,”