LAHORE: The Ambassador of European Commission, Jan De KOK, has said that European Union is considering seriously broadening and deepening its trade relations with Pakistan. The Ambassador was speaking at Lahore Chamber of Commerce and Industry on Thursday. LCCI President Mian Muzaffar Ali, Senior Vice Tahir Javaid Malik and Vice President Irfan Iqbal Sheikh and a number of executive Committee members also spoke on the occasion. The Ambassador said that for the first time ever, Pakistan-EU summit is going to take place on June 17, 2009, in Brussels to discuss the issue of trade with Pakistan. He said that President of Pakistan, Asif Ali Zardari will be presiding over the summit from Pakistan side while the European side would be represented by Czech Republic that holds the rotating Presidency of European Union and most likely Sweden that is going to take charge of the EU Presidency on 1st July, 2009, would also be there to ensure continuity in policies formulated at the summit.
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LAHORE: The Ambassador of European Commission, Jan De KOK, has said that European Union is considering seriously broadening and deepening its trade relations with Pakistan. The Ambassador was speaking at Lahore Chamber of Commerce and Industry on Thursday. LCCI President Mian Muzaffar Ali, Senior Vice Tahir Javaid Malik and Vice President Irfan Iqbal Sheikh and a number of executive Committee members also spoke on the occasion. The Ambassador said that for the first time ever, Pakistan-EU summit is going to take place on June 17, 2009, in Brussels to discuss the issue of trade with Pakistan. He said that President of Pakistan, Asif Ali Zardari will be presiding over the summit from Pakistan side while the European side would be represented by Czech Republic that holds the rotating Presidency of European Union and most likely Sweden that is going to take charge of the EU Presidency on 1st July, 2009, would also be there to ensure continuity in policies formulated at the summit.
* President reviews progress on Pak-China collaborative projects
ISLAMABAD: International bids had been invited for the construction of Bhasha dam with an incentive clause for early completion and three Chinese companies were among the bidders, a meeting on the follow up action on Pak-China collaborative projects was informed in the Presidency on Thursday.
The meeting presided over by President Asif Ali Zardari was called to review the progress on ongoing Chinese-aided projects in Pakistan. Interior Minister Rehman Malik, Finance Adviser Shaukat Tareen, Petroleum Adviser Dr Asim, Special Assistant to the Prime Minister on Water Kamal Majidullah and General Secretary Salman Farooqi attended the meeting. The Chinese ambassador in Islamabad was also present.
Talking to reporters about the meeting, presidents spokesman Farhatullah Babar said the feasibility study of the dam had already been offered to the Chinese companies. The president was informed that WAPDA had also invited bids for project consultancy on an international competitive bid (ICB) basis, Babar said, adding that special invitation had also been extended to the three Chinese companies to help in the construction of the dam and other projects.
Zardari was also briefed about the ongoing collaborative projects with Beijing undertaken recently following his visit to China, the spokesman said.
He said Chinese companies were invited to Pakistan to explore the possibility of transfer of hybrid technology. A Chinese delegation that had visited Pakistan two weeks ago brought with them hybrid rice seeds to be planted in selected areas in Pakistan as an experiment.
More Chinese companies would visit Pakistan with samples of hybrid seed of cotton and wheat and drip irrigation technology to optimise the use of irrigation water and save water resources, Babar said, adding that the state-run Chinese Academy of Agricultural Sciences had been involved in imparting technical expertise and coordination with the Chinese companies, the meeting was informed.
ISLAMABAD (May 22 2009): The Ministry of Water and Power has failed to finalise the location for installation of 320 MW "outdated" power plants, gifted by the United Arab Emirates (UAE), despite the fact that the country is passing through its worst ever power crisis, well-informed sources told Business Recorder on Thursday.
Federal Minister for Water and Power Raja Parvez Ashraf had signed a memorandum of understanding (MoU) with the relevant UAE authorities and worked out a detailed plan for implementation of the agreement for the dismantling, packing and shifting of the plant to Pakistan.
The sources said the UAE government's gifted power plants were not in use in the UAE as they had been replaced with modern plants at the time of signing of the MoU. Pakistan's Ambassador to UAE Khurshid Ahmed Junejo has registered protest with the government for not providing complete information to the UAE government as to where these plants are to be installed.
The sources said the contract department of Abu Dhabi Water and Electricity Authority (ADWEA) was in the process of completing formalities relating to phase-II of transfer of plants to Pakistan. "They have reminded the embassy to provide complete information relating to exact installation locations in Pakistan," said the sources.
According to sources, the Minister for Water and Power written a letter on February 19, 2009 to his counterpart in the UAE and identified two locations, ie Faisalabad and Sheikhupura. However, the ADWEA contract department had informed the embassy that there was no additional space available at Sheikhupura location for installation of plant, the sources added.
The sources said that the process of getting "obsolete" power plants as a gift from the UAE had stared during Shaukat Aziz's tenure. Raja Parvez Ashraf, before leaving Dubai a couple of months ago, had stated that the people of Pakistan would always remember this precious gift, which they were receiving with love and sincerity from brotherly country of the UAE.
He said that the Pak-UAE relations would receive a further boost as a consequence, and expressed the hope that the two countries would help each other in the energy sector in the near future. It may be mentioned here that Sheikh Khalifa bin Zayed Al-Nayhan had offered to donate used power plant of 320 MW capacity as a gift to Pakistan during the last visit of the President of Pakistan to the UAE. The MoU was signed in the presence of President, Asif Ali Zardari in Dubai on February 4.
Daily Times - Leading News Resource of Pakistan
WASHINGTON: Senator John Kerry on Thursday underscored the need for continued US support to help Pakistan take care of the people displaced from Swat following the military offensive launched to eliminate the Taliban from Malakand division.
Chairing the Foreign Relations Committee that received testimony from Admiral Mike Mullen, the top US military officer on US policy toward Pakistan, Kerry recalled the goodwill engendered by US relief efforts in the post-2005 earthquake and called on building the current aid effort.
The current humanitarian crisis in Swat valley is a pressing immediate need. It is also an opportunity, we have a chance here to demonstrate the USs friendship for the Pakistani people, the lawmaker said.
After the Kashmir earthquake, he noted, the sight of US servicemen and servicewomen saving the lives of Pakistanis was incontrovertible proof of our good intentions. He said the Pakistanis started trusting Americans more than the radicals as a result of the humanitarian relief mission.
We (however) failed to follow up on that effort but the bill proposed by Senator Lugar and me aims to correct this failure, he said, pointing to the importance of the pending legislative measure providing Pakistan $1.5 billion annually for economic uplift of its people.
The lawmaker emphasised the need to fix a Pakistan policy [that the US has pursued over several past years] that has largely failed, we need to create a bold new strategy.
Sen Lugar and I have introduced legislation which we believe helps to do just that. By tripling non-military aid, authorising it for 5-10 years, and de-linking this aid from our security assistance, we can put our relationship with Pakistan on an entirely new foundation, Kerry added.
We can ground our ties on the bedrock of the Pakistani people. Thats why President [Barack] Obama explicitly called on Congress to pass the Kerry-Lugar bill as part of his overall strategy.
Citing his recent visit to Pakistan, Kerry also called for the need to equip Pakistan with economic tools to hold the areas clear of Taliban and consolidate the military gains with development initiatives. app
US must help Pakistan with economic aid: Kerry
WASHINGTON: Senator John Kerry on Thursday underscored the need for continued US support to help Pakistan take care of the people displaced from Swat following the military offensive launched to eliminate the Taliban from Malakand division.
Chairing the Foreign Relations Committee that received testimony from Admiral Mike Mullen, the top US military officer on US policy toward Pakistan, Kerry recalled the goodwill engendered by US relief efforts in the post-2005 earthquake and called on building the current aid effort.
The current humanitarian crisis in Swat valley is a pressing immediate need. It is also an opportunity, we have a chance here to demonstrate the USs friendship for the Pakistani people, the lawmaker said.
After the Kashmir earthquake, he noted, the sight of US servicemen and servicewomen saving the lives of Pakistanis was incontrovertible proof of our good intentions. He said the Pakistanis started trusting Americans more than the radicals as a result of the humanitarian relief mission.
We (however) failed to follow up on that effort but the bill proposed by Senator Lugar and me aims to correct this failure, he said, pointing to the importance of the pending legislative measure providing Pakistan $1.5 billion annually for economic uplift of its people.
The lawmaker emphasised the need to fix a Pakistan policy [that the US has pursued over several past years] that has largely failed, we need to create a bold new strategy.
Sen Lugar and I have introduced legislation which we believe helps to do just that. By tripling non-military aid, authorising it for 5-10 years, and de-linking this aid from our security assistance, we can put our relationship with Pakistan on an entirely new foundation, Kerry added.
We can ground our ties on the bedrock of the Pakistani people. Thats why President [Barack] Obama explicitly called on Congress to pass the Kerry-Lugar bill as part of his overall strategy.
Citing his recent visit to Pakistan, Kerry also called for the need to equip Pakistan with economic tools to hold the areas clear of Taliban and consolidate the military gains with development initiatives. app
ISLAMABABD (May 22 2009): Donors have pledged $224 million for immediate relief and rehabilitation of the Internally Displaced Peoples (IDPs) of Swat whereas preliminary estimates suggest Pakistan would need over $1 billion for their resettlement.
Speaking at the news conference, after the donors' conference chaired by the Prime Minister Syed Yoisaf Raza Gilani, Minister of State for Finance Hina Rabbani Khar said UN would launch 'Flash Appeal' and pledges are expected to increase to $500 to $600 million for the IDPs.
To a question about how much contribution was made by the Muslim Countries, she said they have entirely different modus operandi and would pledge on bilateral level for which President was already in touch with them. The conference attended by 40 countries was given detailed briefing about what was immediately required to alleviate the plight of IDPs. To another question, the Minister said preliminary estimates showed that Pakistan would be requiring over $1 billion for reconstruction and rehabilitation of IDPs and this cost could even rise.
Giving details of the pledges made during the conference, she said US would provide $110 million, Japan $43.35 million, UK $18.54 million, France $16.32 million and Germany pledged $17.6 million. Canada, Denmark and Norway pledged $4.32 million, one million and $2.95 million, respectively for the IDPs whereas EU pledged $9.526 million. United Nations (UN) will launch a formal appeal on Friday in a bid to raise $500 to 600 million for the IDPs.
She said that donors have assured to provide full support to Pakistan in all the three phases from providing relief to reconstruction and rehabilitation of IDPs. The amount pledged would be utilised for relief and reconstruction activities under the umbrella of United Nations. She said that the response of the donors was very positive to deal with the humanitarian crisis. The donors gave positive response to the three pronged strategy for relief, return and rehabilitation.
Earlier, Prime Minister Yusuf Raza Gilani sought donors help for rehabilitating the IDPs, apprised them about efforts made so far as well as about government three pronged strategy to provide immediate relief and their permanent settlement. Gilani said Pakistan was grappling with the menace of terrorism and launched a multi pronged action in Swat and adjoining areas to eradicate it from its roots.
The government was aware of the fact that the recent influx of IDPs has led to a manifold increase in the magnitude of the crisis and wanted the help of world community in dealing with the problem. Prior to the on-going Swat military operation, he said the crisis of IDPs was manageable and was being looked after by the NWFP government, he added.
"Prime Minister's Special Fund for Relief of Victims of Terrorism" was set up to receive donations from both domestic and international donors, over Rs 2 billion was provided to the NWFP government for immediate support to the IDPs. Apprising them about Pakistan's strategy for the IDPs, the Prime Minister said it was based on three phases including Relief, Return, and Rehabilitation & Reconstruction.
The UN would lead the relief phase, in consultation with the NWFP government, and would also make a 'UN Flash Appeal' in consultation with all stakeholders. However, it should be our effort that the relief phase should be as short as possible. For the Rehabilitation & Reconstruction phase, the World Bank is preparing to undertake a Post Conflict Needs Assessment Study. This is a time-consuming exercise and the results shall be shared with the donor community in due course of time.
The Prime Minister said given the magnitude of the task that lies ahead, Pakistan would like to seek the support from the donor community, both for the ongoing relief efforts and for the rebuilding process. Pakistan is looking forward to a positive and visible response from the international community in this regard and reiterates its resolve to root out militancy from its soil.
ISLAMABAD (May 22 2009): The Planning Commission has given top priority to water and power in its proposed allocation of Public Sector Development Programme (PSDP) for 2009-10 fiscal year by recommending Rs 48.45 billion. The government had allocated Rs 62.420 billion for water and power sector in the 2008-09 budget that has been reduced to Rs 31.210 billion due to financial constraints.
At present, the country is going under energy crisis and proposed allocation for water sector is Rs 34.454 billion and Rs 14 billion for power sector to be considered by Annual Plan Co-ordination Committee (APCC), scheduled to meet Friday. The APCC will consider Rs 294.4 billion proposed Federal share in the PSDP.
In the proposed allocation, the Planning Commission has given second priority to the Communications, including National Highway Authority (NHA) sector, proposing Rs 26.165billion allocation for the next fiscal year. The government had allocated Rs 36.821 billion for the current fiscal year that has been slashed to Rs 19.032 billion due to financial crunch.
Higher Education Commission (HEC) may also get big share of allocation worth Rs 22.5billion for the next fiscal year. It is interesting to note that its proposed allocation is more than proposed allocation of Rs 6.482billion for Education Division. The government had also allocated Rs 6.269 billion for Education Division for the current financial year that has been reduced to Rs 4.162 billion.
The proposed allocation for HEC is double against the last year's allocation of Rs 12.6 billion for HEC now reduced to Rs 18 billion. The proposed allocation for Pakistan Atomic Energy Commission (PAEC) is Rs 17.147 billion and Rs 447.4 million for Pakistan Nuclear Regulatory Authority for the next fiscal year.
Under the rationalisation programme, the government did not cut the big share of Pakistan Atomic Energy Commission's allocation for the current fiscal year that has been revised to Rs 15 billion from earlier allocation of Rs 15.330 billion.
THE PROPOSED ALLOCATION FOR OTHER MINISTRIES AND DEPARTMENTS ARE FOLLOW:
PETROLEUM AND NATURAL RESOURCES: Rs 580 million;
PORTS AND SHIPPING: Rs 200 million;
RAILWAYS DIVISION: Rs 8.968 billion;
SOCIAL PROGRAMMES: Rs 35 billion;
FINANCE DIVISION: Rs 10.189 billion;
PLANNING AND DEVELOPMENT DIVISION: Rs 4.675billion;
LOCAL GOVERNMENT AND RURAL DEVELOPMENT: Rs 224 million;
TOURISM DIVISION: Rs 32.5 million;
HOUSING AND WORKS: Rs 3.019 billion;
MINISTRY OF FOREIGN AFFAIRS: Rs 250 million;
NARCOTICS CONTROL DIVISION: Rs 611million;
POPULATION WELFARE DIVISION: Rs 4.770 billion;
WOMEN DEVELOPMENT DIVISION: Rs 173 million;
SOCIAL WELFARE AND SPECIAL EDUCATION: Rs 329 million; and;
LABOUR AND MANPOWER DIVISION: Rs 121.4 million;
CULTURE DIVISION: Rs 392 million;
SPORTS DIVISION: Rs 297.5 million;
YOUTH AFFAIRS DIVISION: Rs 47.8 million;
CABINET DIVISION: Rs 2.065 billion;
INFORMATION AND BROADCASTING DIVISION: Rs 639.8 million;
DEFENCE PRODUCTION DIVISION: Rs 1.560 billion; and;
FOOD AND AGRICULTURE DIVISION: Rs 16.880 million.
For Defence Division, including Suparco, the proposed allocation is Rs 5.391 billion in 2009-10 against the revised allocation of Rs 2.295 billion in the outgoing fiscal year. For Interior Division, the proposed allocation is rupees five billion in 2009-10, whereas the allocation for Law, Justice and Human Rights Division may be Rs 2.551 billion in the next financial year PSDP against Rs 1.5 billion for ongoing fiscal year 2008-09.
May 22 (Bloomberg) -- Pakistans economy is forecast by the government to expand at a faster pace in the next fiscal year starting July 1 as the government spends more on power and water projects.
The economic team has set a growth target of 3.3 percent but this could go to 4 percent if we get additional support from development partners, Sardar Assef Ali, deputy chairman of the Planning Commission told reporters in the capital, Islamabad, today.
The government will spend 600 billion rupees ($7.54 billion) on development projects in the year starting July 1, compared with a budgeted 541 billion rupees this year. Power, water, agriculture and social sector spending will be priority areas, Ali said.
Pakistan set the economic targets ahead of next months budget announcement for the forthcoming fiscal year. The Pakistan Peoples Party-led coalition government predicts the economy will grow by an average of more than 6 percent in the next five years helped by a $7.6 billion bailout from the International Monetary Fund.
The government predicts the economy will grow two percent in the year ending June 30, the slowest pace in eight years, from 5.8 percent in the previous year, Ali said. The farm sector, which accounts for one-fourth of GDP, is estimated to expand four percent in the year ending June 30, he said.
Slowing Inflation
Inflation is expected to slow to nine percent in the year starting July 1, he said. The central bank predicts inflation may ease to 11 percent in June.
The bailout by the IMF has helped South Asias second biggest economy avoid defaulting on its debt and increase foreign-exchange reserves that last year dropped 75 percent.
The IMF has agreed to provide an additional $4.5 billion package to Pakistan, Shaukat Tarin, finance adviser to the prime minister, said last week. The government will decide next month whether it needs the additional IMF loan, he said.
The government is expecting to receive more than $4 billion in assistance funds by the end of June from the U.S., the Asian Development Bank and the World Bank, Tarin said.
Pakistans economy deteriorated this year because of political wrangling and the nations battle against Taliban insurgents in the tribal areas and Swat valley. A month-long battle has so far displaced about 2 million people from Swat. The military says it has killed more than 1,000 militants.
Budget Deficit
The IMF has agreed to ease Pakistans budget-deficit target next fiscal year to help boost economy. An increase in the budget deficit target to 4.6 percent of gross domestic product from 3.4 percent will provide fiscal space and boost growth, the Washington-based lender said in a report this month.
In 2008, Pakistans rupee plunged 22 percent, the benchmark stock index fell 58 percent and the balance-of-payments deficit widened to a record.
The economy deteriorated as the central bank increased its key interest rate to a 10-year high of 15 percent. The bank last month cut its benchmark lending rate by one percentage point to 14 percent to boost growth.
Saturday, May 23, 2009
ISLAMABAD: Sardar Aseff Ahmad Ali, Deputy Chairman Planning Commission, has said next development budget outlay will be around Rs600 billion, including federal government share of Rs400 billion in the Public Sector Development Programme and provincial share of Rs200 billion.
He was speaking at a press briefing here on Friday afternoon at the P Block of Planning Commission where a meeting of the Annual Plan Coordination Committee (APCC) was underway.
Ali said next years GDP growth had been projected at 3.3 per cent which would increase to over 4 per cent keeping in view the size of budgetary allocations amounting to Rs600 billion for next fiscal year, which would trigger economic activities and accelerate growth.
However, he said the GDP growth for the ongoing financial year had been estimated at 2 per cent against 2.5 per cent agreed with the International Monetary Fund (IMF). Last years growth of 5.8 per cent has been readjusted at 4.1 per cent. However, next years inflation target has been projected at 9 per cent.
Although there was no relief as inflation stood at 17.8 per cent, the government had managed to check price rises, he said and hoped the inflation would come down to 14 per cent by June 30.
Ali acknowledged that government policies provided no respite in inflation, but defended the massive increase in wheat support price to Rs950 per 40kg, saying if it were not provided to the farmers, Pakistan would have faced a wheat crisis.
Talking about administrative measures for bringing down inflation, he said earlier magistrates had an effective role to curb inflation at the local level, but the last government changed the system and the local governments had miserably failed to deliver on that front.
He said budgetary allocations would be fine-tuned in the meeting of the National Economic Council (NEC), which was scheduled for July 1. This time, we have got the fiscal space in the range of Rs85 to Rs90 billion, which will be spent in 2009-10 on new development schemes.
However, the main chunk of Rs400 billion would be spent on ongoing development projects. In case, ERRA project allocations were included in the PSDP, available fiscal space for the development budget would increase to Rs105 billion.
To a question, he said Kalabagh dam had not been officially shelved and Pakistan needed more dams. However, those dams would be completed which had complete consensuses from the four federating units. Since Pakistan is a federation, so every water reservoir would be completed after developing consensus.
He said Akhori dam could not be approved as small provinces had raised some objections in the APCC meeting and to that effect he had asked the Ministry of Water and Power to address the reservations of Sindh and NWFP.
He said the government gave paramount importance to Diamer-Basha dam and formal work on it would kick off next year, adding bids had been invited from local and foreign construction companies.
To a question, he said budgetary demand for ongoing development schemes stood at Rs825 billon, but the huge demand had been rationalised keeping in view resources available with the government. He said the secretary finance had assured the Planning Commission that budgetary releases for the PSDP of 2009-10 would be ensured on time so that no project could face any delay.
To a question, he said the government had prioritised various sectors which would be having total focus. The social sector had been put on top and then came water, electricity, agriculture and infrastructure. These sectors development would ensure economic activities in the country.
Ali said the Planning Commission had started chalking out plans for the rehabilitation of Internally Displaced Persons (IDPs) and reconstruction of areas destroyed during the military operation against the militants.
However, he said the projects for reconstruction of IDP areas would be out of PSDP.
ISLAMABAD: Sardar Aseff Ahmad Ali, Deputy Chairman Planning Commission, has said next development budget outlay will be around Rs600 billion, including federal government share of Rs400 billion in the Public Sector Development Programme and provincial share of Rs200 billion.
He was speaking at a press briefing here on Friday afternoon at the P Block of Planning Commission where a meeting of the Annual Plan Coordination Committee (APCC) was underway.
Ali said next years GDP growth had been projected at 3.3 per cent which would increase to over 4 per cent keeping in view the size of budgetary allocations amounting to Rs600 billion for next fiscal year, which would trigger economic activities and accelerate growth.
However, he said the GDP growth for the ongoing financial year had been estimated at 2 per cent against 2.5 per cent agreed with the International Monetary Fund (IMF). Last years growth of 5.8 per cent has been readjusted at 4.1 per cent. However, next years inflation target has been projected at 9 per cent.
Although there was no relief as inflation stood at 17.8 per cent, the government had managed to check price rises, he said and hoped the inflation would come down to 14 per cent by June 30.
Ali acknowledged that government policies provided no respite in inflation, but defended the massive increase in wheat support price to Rs950 per 40kg, saying if it were not provided to the farmers, Pakistan would have faced a wheat crisis.
Talking about administrative measures for bringing down inflation, he said earlier magistrates had an effective role to curb inflation at the local level, but the last government changed the system and the local governments had miserably failed to deliver on that front.
He said budgetary allocations would be fine-tuned in the meeting of the National Economic Council (NEC), which was scheduled for July 1. This time, we have got the fiscal space in the range of Rs85 to Rs90 billion, which will be spent in 2009-10 on new development schemes.
However, the main chunk of Rs400 billion would be spent on ongoing development projects. In case, ERRA project allocations were included in the PSDP, available fiscal space for the development budget would increase to Rs105 billion.
To a question, he said Kalabagh dam had not been officially shelved and Pakistan needed more dams. However, those dams would be completed which had complete consensuses from the four federating units. Since Pakistan is a federation, so every water reservoir would be completed after developing consensus.
He said Akhori dam could not be approved as small provinces had raised some objections in the APCC meeting and to that effect he had asked the Ministry of Water and Power to address the reservations of Sindh and NWFP.
He said the government gave paramount importance to Diamer-Basha dam and formal work on it would kick off next year, adding bids had been invited from local and foreign construction companies.
To a question, he said budgetary demand for ongoing development schemes stood at Rs825 billon, but the huge demand had been rationalised keeping in view resources available with the government. He said the secretary finance had assured the Planning Commission that budgetary releases for the PSDP of 2009-10 would be ensured on time so that no project could face any delay.
To a question, he said the government had prioritised various sectors which would be having total focus. The social sector had been put on top and then came water, electricity, agriculture and infrastructure. These sectors development would ensure economic activities in the country.
Ali said the Planning Commission had started chalking out plans for the rehabilitation of Internally Displaced Persons (IDPs) and reconstruction of areas destroyed during the military operation against the militants.
However, he said the projects for reconstruction of IDP areas would be out of PSDP.
WASHINGTON: The US Senate approved economic and security assistance on Thursday evening to bolster Pakistans development and counterinsurgency capabilities as part of a massive $91.3 billion supplemental bill for Iraq and Afghanistan wars.
The House of Representative has already passed a similar bill, and a reconciled version would now be presented to US President Barack Obama for his endorsement early next month. The Senate measure allows the Obama administration to use $400 million to build Pakistans counterinsurgency capability, as part of a $3 billion, five-year programme.
It allows more than $500 million to be used for Pakistans economic development, strengthening law-enforcement agencies and good governance, providing humanitarian assistance and funding counter-narcotics and economic support programmes. In addition, nearly $900 million would flow into Pakistan for US diplomatic operations and improvement of security at its diplomatic missions in the country.
The US and the international community have welcomed and supported Pakistans return to civilian rule since the democratic elections of February 18, 2008, says the bill. It notes that Afghanistan and Pakistan are facing grave threats to their internal security from a growing insurgency. app
ISLAMABAD: Advisor to Prime Minister on Finance Shaukat Tareen said on Friday that upcoming budget 2009-10 will be growth oriented and people friendly.
Talking to PTV, he said, sizable amounts would also be allocated for poverty alleviation and others peoples welfare projects.
He said, initiatives will also be announced in the budget to increase the countrys growth rate.
The Advisor said the government will also announce measures to create more job opportunities as it will help alleviating poverty.
The budget will focus on agriculture, energy, manufacturing sectors and to develop infrastructure.
He said the government did not believe on imposing more taxes on its people rather it wanted to increase tax net and to improve administration.
Shaukat Tareen said the government with the cooperation of masses will increase tax net in the coming days.
He said more areas and people will be brought under tax net in the budget. The budget having care of poor segment of society, measures for the growth of different sectors, step to control price hike can be called good one, he added.
About oil prices, he said, the prices have been decreased as per promised by the government with the people of the country.
He informed that the government is not in a position to decrease more oil prices in future as the prices of oil has increased in the international market.
To a question, he said, the prices of CNG revised after the period of six moth. He hoped that the prices of CNG will also be decreased in near future.
To a question about donor conference, he said international community in Tokyo has pledged of 5.28 billion dollar.
He said international community have also made commitment for IDPs.
He said 2 billion dollar plus will be required for IDPs rehabilitation. He said response of the international community was very positive in IDPs conference. app
ISLAMABAD (May 23 2009): After Kalabagh Dam, two other big projects in energy sector are in doldrums as provinces have raised objections over the Thar Coal Project and Akori Dam. The Water and Power Ministry had submitted the feasibility study of Akori Dam for allocation in the Public Sector Development Programme 2009-10 but the Annual Plan Co-ordination Committee (APPCC) refused to recommend allocation for the project due to objections raised by provinces in the meeting.
Addressing a press conference, Planning Commission Deputy Chairman Aseff Ahmed Ali said that the ministry concerned has been directed to remove the objections of provinces on the Akori Dam and bring it again to the Commission for consideration. He also announced that Kalabagh Dam was not officially shelved but added that reservations of provinces should be addressed to develop consensus on the project.
According to sources, Thar Coal Project approved by the Central Development Working Party (CDWP) costing Rs 2.5 billion is in doldrums as Sindh has objected to the role of Thar Coal Mining Company as executing agency. According to sources Sindh wants to assign the role of executing agency to the Thar Coal Energy Board and due to controversy between federal government and Sindh, the project seems to be in doldrums, sources claimed.
In the last meeting, the CDWP had approved a Thar Coal project through which gas would be derived from coalmine. The project was the pilot project to generate 1000 MW electricity.
The Deputy Chairman of Planning Commission said during the press conference that President Asif Ali Zardari has taken interest in forming the Thar Coal Energy Board that comprised the members of Sindh as well as federal government to resolve the differences between federal and Sindh government. He said that the government had devised a plan of gasification from Thar coal because mining of Thar coal could create ecological problems for Thar district.
He said the government required billions of dollars for setting up the coal-based power plants and was devising a business plan to attract global investors. He said the government was also giving top priority to the Diamer Bhasha Dam and would make block allocation for the water and power sector in the upcoming budget for development projects including Bhasha Dam.
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"People friendly" -- WTF?
Whats' "people friendly"?? Is this a govt spending bill we are talking about? If yes, then some people's pet projects will not get funded, will those people cease being "people" and the budget become "unfriendly" to them??
Ok, I understand your confusion, you cannot understand how a process of choosing the most worthwhile projects can be "friendly" or "unfriendly" --- So, with your permission, I might attempt an explanation? hainji? "Friendly" is when you give free money -- "Unfriendly" is when you don't give free money
It's vitally important to use the correct name for things - and such misdirection as "people friendly" should be your first clue that someone else (a guess, but most likely a politician or his cronies or extended family) will have access to a significant portion of the treasury, in the name of the "awam" and their "welfare", and those who have a job and live on a salary can expect to finance the "friendly" spending for the "welfare" of the "awam" , for which politicians and their cronies thank you, ghost jobs thank you and bureaucrats holding numbered accounts thank you -- to avoid you feeling the pain now, financing will be pushed to overseas financiers, but one way or another, you will pay that bill, for the "welfare of the Awam".
But hey, you are rich, you can afford it - you studied, you have a good job, you had chances in life - the Awam did not, and the politicians and bureaucrats who have made this argument on behalf of the "Awam", are they also poor ? Did not have opportunities that you had? BTW, when did you last have an opportuinity to raid the treasury, enrich yourself and your buddies?
Reap as you sow, it's a universal law, plant corn and hope to harvest wheat?
Whats' "people friendly"?? Is this a govt spending bill we are talking about? If yes, then some people's pet projects will not get funded, will those people cease being "people" and the budget become "unfriendly" to them??
Ok, I understand your confusion, you cannot understand how a process of choosing the most worthwhile projects can be "friendly" or "unfriendly" --- So, with your permission, I might attempt an explanation? hainji? "Friendly" is when you give free money -- "Unfriendly" is when you don't give free money
It's vitally important to use the correct name for things - and such misdirection as "people friendly" should be your first clue that someone else (a guess, but most likely a politician or his cronies or extended family) will have access to a significant portion of the treasury, in the name of the "awam" and their "welfare", and those who have a job and live on a salary can expect to finance the "friendly" spending for the "welfare" of the "awam" , for which politicians and their cronies thank you, ghost jobs thank you and bureaucrats holding numbered accounts thank you -- to avoid you feeling the pain now, financing will be pushed to overseas financiers, but one way or another, you will pay that bill, for the "welfare of the Awam".
But hey, you are rich, you can afford it - you studied, you have a good job, you had chances in life - the Awam did not, and the politicians and bureaucrats who have made this argument on behalf of the "Awam", are they also poor ? Did not have opportunities that you had? BTW, when did you last have an opportuinity to raid the treasury, enrich yourself and your buddies?
Reap as you sow, it's a universal law, plant corn and hope to harvest wheat?
Waqar says $10bn investment target to be achieved, Qatar to supply LNG
Sunday, May 24, 2009
LAHORE: Federal Investment Minister Waqar Ahmad has expressed confidence that the foreign investment target of $10 billion by the end of December will be achieved as the government is in constant touch with foreign investors and expatriate Pakistanis.
He was speaking at the Lahore Chamber of Commerce and Industry. He said agreements to be reached with investors would be protected through legislation so that future governments could not be able to scrap those agreements. Despite all odds, he said, a number of potential foreign investors were ready to make investment in Pakistan in various sectors.
Over the issue of power and gas shortage in the country, the minister said Qatari government had agreed to provide two million tonnes of liquefied natural gas (LNG) provided Pakistan entered into a long-term agreement. In that regard, a high-powered delegation, headed by the federal petroleum minister, would be visiting Qatar very soon.
He said LNG, being an efficient fuel, would not only meet gas shortage in the country but would also help increase efficiency of all thermal power generation units, which would be able to produce an extra 1,200 to 1,300 megawatts of electricity.
On completion of all formalities with the Qatari government, he said, the LNG could reach Pakistan within three months, adding the agreement would also help curtail the oil import bill.
He said Pakistan is an attractive place for investment in the construction sector as there is a shortage of eight million houses. He said Pakistanis, who had invested $8.5 billion in the UAE, could be prospective investors besides UAE investors.
He said the business offered a return of 40 per cent on investment, adding the government was planning to offer land as its equity to these investors who had a capacity to construct 60 houses per day with an investment of $4 million only. Even if one million houses were constructed through the process, he added, it would generate a cash flow of $15 billion.
He said a task force comprising private sector experts was being set up to guide the government in its investment policy initiatives.
LCCI President Mian Muzaffar Ali said there was a dire need for foreign investment in labour-intensive industries because every year four million people entered the workforce. He said it could easily be done through active participation of commercial attaches working in foreign countries and private sectors collaboration with the chambers of commerce in other countries.
He said the present year like 2008 was witnessing a terrible state of affairs, whether in the shape of terrorism, higher energy prices, exceptional surge in food inflation or financial market crisis matching the Great Depression of 1930s.
He said foreign investment was constantly shrinking. Overall foreign investment during fiscal year 2008 had declined by 32.2 per cent and stood at $3.6 billion against $5.3 billion in the previous year. Worst of all, he said, energy crisis had increased the cost of doing business in the country.
Sunday, May 24, 2009
KARACHI: A Pakistani delegation is leaving for Japan on Saturday to offer special industrial zone to Japanese investors in Karachi at the 5th round of Pak-Japan joint business dialogue next week.
This was stated by the Board of Investment (BoI) Chairman Saleem H Mandviwalla, while speaking at a press conference at BoI office on Saturday.
The meeting will be held at Tokyo Chamber of Commerce and Industry on Monday. He said the delegation will present a report that will finalise modalities about the special zone and Japanese investors will select land from the two designated sites, both available in Port Qasim area, he added.
Mandviwalla said that about 300 acres of land of the national industrial park and 1,300 acres of land from Sindh government will be offered to Japanese investors. Japanese investors will have the choice of developing land for the zone either by themselves or through a joint venture with Pakistani counterparts.
He pointed out that work on this project had started since last two years and so far four rounds have been held in both the countries. Mandviwalla said that one-to-one meetings will be held during the three-day stay.
Mandviwalla said that similar delegation from Japan will also visit Pakistan after this summit. He said Japanese investors will be offered incentives including tax exemption, duty-free import of machinery and raw material for re-export purposes at this zone.
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