Pakistan Economy - News & Updates - Archive

[sohailbutt]

14.11 million bales cotton production likely this year ​

MULTAN (May 28 2008): It is hoped that 14.11 million bales of cotton will be produced this year while the sowing area target has been fixed at 3.2 million hectares (7.904 million acres). The target has been set by the Crop Assessment Committee in its recent meeting, said Director, Central Cotton Research Institute (CCRI), Muhammad Arshad, while talking to APP.

He said that cotton sowing "is at its peak currently", and cultivation would continue till the first week of June. The province-wise sowing targets are: Punjab 2.52 million hectares (6.224 million acres); Sindh 0.63 million hectares (1.556 million acres), NWFP 0.01 million hectares (0.024 million acres), and Balochistan 0.04 million hectares (0.98 million acres).

The province-wise production target has been set as follows: Punjab 11 million bales, Sindh 3 million bales, NWFP 0.01 million bales and Balochistan 0.1 million bales. Experts observed that cotton sown two weeks ago or more would not be affected by rains, but the recently sown fields would have to be re-sown because the cotton seed cannot germinate and grow in the rain-wet fields.

Last year, the government had to downward revise the cotton output target twice due to water shortage and massive attack of mealy bug and at some places the attack of virus. According to Multan Chamber of Commerce and Industry (MCCI) president Jalaluddin Roomi, the country's approximately 400 textile mills consume about 16 million bales cotton per annum. The shortfall has to be met by importing cotton by spending huge amounts of forex.

About cultivation of Bt cotton, CCRI Director said that two institutes--Nuclear Institute of Biotechnology and Genetic Engineering (Nibge) Faisalabad, and Centre of Excellence of Microbiology (Cemb) Lahore--are working to develop local Bt cotton. "Farmers are utilising the imported cotton seed but it is not sure whether it is Bt seed or not. If the crop is attacked by American bollworm, spotted bollworm or pink bollworm, then it means the seed is not of Bt variety."

He said that even Bt seed is not immune from the onslaught of mealy bug, which disappointed the cotton growers and many of them are now compelled to divert to other crops, such as vegetables, paddy, maize, sugarcane, etc.

President of Farmers Organisation for Progress (FOP), Mushtaq Ahmed, and general secretary Mahtab Hussain called for steps to save the cotton crop from mealy bug devastation, which adversely hits the produce and the textiles of the country.

Business Recorder [Pakistan's First Financial Daily]

 

[sohailbutt]

KSE witness yet another black day ​

KARACHI: Karachi Stock Exchange (KSE) yesterday’s fight back, perhaps proved too exhaustive sapping all of its energy that brought KSE-100 index today falling flat by 567 points and down below 12,200 marks.

The market opened downbeat and soon went through severe bouts of depression, except a brief moment, when the index was seen gaining by 100 points, but that proved elusive, as there was nothing to cheer about at the national political scene, while the rulers appeared bent on carrying out their one-point agenda, which had all the negative bearings for the sagging economy. All blue chips on the bourse’s board showing red signs were seen locked at their lower levels, while the bookies and punters kept beating their chests and tears rolling down from their eyes.

KSE-100 index at the end of the trading session melting away 567 points wrapped up at 12254. Turnover today aggregated to 180 million shares, which as compared yesterday was less by 100 million shares. Volume leader NIB Bank losing Rs1 closed at Rs12. KSE-30 index evaporating 749 closed at 14395 points.

KSE witness yet another black day - GEO.tv

 

[sohailbutt]

Rupee at the onset of open market stays stable ​

KARACHI: Rupee value as against dollar at the onset of open market today was seen stable, as dollar sold at Rs69 in the ready market and telegraphic transfer. Exchange rates of rupee against other currencies: British Pound at Rs136.20, Euro at Rs108.50, Japan Yen at Rs0.663. Emirates Dirham at Rs19.85, Saudi Riyal at Rs18.44, while Canadian dollar was sold at Rs69.20.

Rupee at the onset of open market stays stable - GEO.tv

 

[Neo]

Govt uncertain about PSDP size ​

Wednesday, May 28, 2008

ISLAMABAD: The PPP government is finding it quite hard to finalise the exact size of the development programme for 2008-09 and a crucial meeting will be held on Wednesday with the Prime Minister in the chair for a final decision.

Although the Annual Plan Coordination Committee (APCC) had concluded its two-day meeting last Saturday, the Planning Commission has so far been unable to prepare a summary for the upcoming National Economic Council (NEC). The NEC will meet with Prime Minister Syed Yousuf Raza Gilani in the chair on May 30, for approving the exact size of the Public Sector Development Programme (PSDP) for 2008-09.

“Yes, the Prime Minister is going to chair a meeting on Wednesday to finalise the size of the PSDP. Then a summary will be forwarded to the NEC for final approval,” a source in the Ministry of Finance told The News here on Tuesday.

M Salman Faruqui, Deputy Chairman Planning Commission, who has been granted the status of Federal Minister and MP-I scale recently by the incumbent regime, chaired a number of meetings in the last three days after the APCC meeting, but was unable to finalise the size of the PSDP for the next budget.

The sources said that the fiscal position will remain under severe strain in the next financial year owing to expected higher POL and commodities prices, making it difficult for the budget-makers to meet the expectations of the poor people.

Against budgetary allocation of Rs485 billion for PSDP in the outgoing fiscal year 2007-08, the APCC recommended an increase of a meager amount of only Rs5 billion in the size of the development outlay in the next financial year 2008-09, by jacking up the amount to Rs490 billion. According to indications given by official sources, the PSDP size will be around Rs460 to Rs480 billion in the next budget, which would be short by the recommended amount of the APCC. Owing to the tight fiscal position, the government is thinking on various aspects for finding out more fiscal space to jack up the development amount closer to Rs500 billion for 2008-09.

The APCC considered major emphasis on the infrastructure development sector with an allocation of Rs111.4 billion (38.8 per cent), water resource development Rs51.9 billion (18.1pc), transport and communication Rs43.5 billion (15pc), and energy Rs16 billion (6pc) followed by social sectors and poverty expenditures with an allocation of Rs151.6 billion (52.8pc). The allocation for strategic support to production sectors i.e. agriculture, industry and mineral is Rs24 billion (8.4 per cent of the total federal programme).

According to PSDP for 2008-9 allocations considered by the APCC, the federal ministries/divisions allocation was proposed at Rs188.9 billion for the development side in the next budget, against the allocation of Rs229.8 billion for the ongoing fiscal year, proposing a decrease by 17.8 per cent. For special areas, the priorities committee recommended an allocation of Rs23.2 billion in the next PSDP, against the existing allocation of Rs21.2 billion for the outgoing fiscal year, proposing an increase of 9.4 per cent.

Govt uncertain about PSDP size

 

[Neo]

South Africa shows interest in coal mining ​

Wednesday, May 28, 2008

ISLAMABAD: A visiting South African delegation of entrepreneurs on Tuesday evinced keen interest in coal mining areas of Thar. They expressed their desire to exchange know-how and expertise for development of such areas, aimed at benefiting both countries.

The delegation, led by Paul Main and comprising a group of entrepreneurs engaged in mining of diamond and coal in South Africa, called on Syed Naveed Qamar, Finance Minister here, says a news statement. They discussed with the Minister, their existing development-specific attainments in South Africa in the discipline of geological and mineral related discoveries.

Paul Main is the Chief Executive of Arcadia Energy and Mining Limited, headquartered in London. The South African Group has over twenty mining related projects all over the world, having simultaneous expertise in oil exploration. The Group operates from London and discussed with the Minister, its institutional concepts and planning to offer investment in Pakistan’s mining resources located in Punjab and Sindh.

Syed Naveed Qamar lauded the investment-based entrepreneurial interest of the South African delegates and assured to take up the matter with concerned government stakeholders, to institutionalise their investment potential. He appreciated the technical know-how and expertise of the visiting South African Arcadia Energy and Mining Limited, and its mining-based investment potential in Pakistan.

South Africa shows interest in coal mining

 

[Neo]

Metrics adopted in Pakistan ​

Wednesday, May 28, 2008

KARACHI: New Horizons Pakistan has now become the only learning centre in Pakistan that has adopted MTM or Metrics that Matter, an international evaluation system.

In the MTM system, the participants can evaluate the course, the trainer and the training facility by accessing the Internet based evaluation format. It results in a comprehensive evaluation report that also includes a trainer and training facility profile, based on the evaluation filled by the respective participants, spokesperson said.

“Metrics that Matter technology is an independent evaluation service that helps our client organisations continuously measure the satisfaction, effectiveness, impact, business results & ROI on learning investments,” said by Enam-Ur-Rehman, PMP & Director of New Horizons Pakistan.

He added that the MTM global technology is based on independent, credible and industry accepted measurement methodologies which have been adopted by numerous industry leaders and is recognised as a standard in corporate, public sector, and commercial human capital practices like Roosevelt University, Harvard University, British Telecom, Caterpillar, P&G, US Air force, US Army & New Horizons to name a few.

Metrics adopted in Pakistan

 

[Neo]

Realistic pricing mechanism needed: WB​

ISLAMABAD: World Bank (WB) stressed for resource mobilization, revenue generation and adopting realistic pricing mechanism to overcome economic difficulties faced by the country, official sources told Daily Times Tuesday.

Vice president, WB South Asian Region, Praful C Patel, along with his team members called on Syed Naveed Qamar, Finance Minister Tuesday.

He discussed with Finance Minister, matters relating to current global and region specific economic issues. Finance Minister briefed WB team on latest economic issues confronting Government of Pakistan against the backdrop of pre-budget preparations during FY 2008-09. GoP’s economic priorities and broad policy framework were impressed upon WB vice president.

Patel presented a detailed overview of global economic conditions focusing South Asian Region against emerging world economic realities. Discussion also focused on GoP’s economic reforms agenda that primarily takes into account common man’s economic concerns who ultimately is the recipient of the impact of GoP’s multi-sectoral fiscal measures.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Abandoning Kalabagh Dam against national interest, says Elahi​

LAHORE: Former Punjab chief minister Chaudhry Pervaiz Elahi on Tuesday criticised the government for announcing the abandonment of the Kalabagh Dam (KBD) project without having any public mandate in this regard. Talking to journalists, he termed the initiative totally against the national interest as it wiped out all the previous governments’ efforts to develop a countrywide consensus on the controversial issue.

He said the government had made the announcement only to divert masses’ attention from the basic problems of price-hike, unemployment and deteriorating law and order situation in the country.

Elahi said, “On the pretext of disagreement by some politicians of small provinces, the champions of democracy have abandoned the important national project without tabling it on the floor of the National Assembly for debate.” With the abandoning of the KBD, millions of acres of barren lands in NWFP and Sindh would not be irrigated and the country would also be deprived of the opportunity to generate 4,500 megawatts of low-cost electricity, he said. The decision by the government has not only rejected the experts’ opinion on the water reservoir but also wasted billions of rupees spent on feasibility reports and the KBD site, he asserted.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

‘Gwadar port can’t be operational before 2011’​

KARACHI: Gwadar port cannot be made operational before 2011 as it lacks required infrastructure, communication network and utilities, Minister for Ports and Shipping Qamaruzzaman Kaira said on Tuesday.

“I am shocked to learn that the port has no proper road linkages. No rail network. Even electricity is not there,” he told reporters after inaugurating an overpass on MA Jinnah Road.

He said many cases of embezzlement, corruption and misuse of authority were reported in the Gwadar port, and other allied projects.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Editorial: Goodbye, Kalabagh Dam!​

The Federal Water and Power Minister, Raja Pervez Ashraf, has finally said what most governments in the past were unwilling to utter. On Monday he told the press that the government had dropped the Kalabagh Dam project “forever”, as it is “a controversial issue among the provinces”. The old line was: we will build it when all the provinces agree. It was actually “three versus one” because only Punjab wants it. The other three provinces have provincial assembly resolutions against its construction.

Given the political situation in 2008, the fate of Kalabagh Dam was sealed anyway. The ruling PPP has its base in Sindh where opposition to the dam is a part of Sindhi nationalism. It is in coalition with ANP in Islamabad and Peshawar, and ANP says it will, if necessary, physically oppose the construction of the dam. The PPP is also determined to smoke the peace pipe in Balochistan which supports the NWFP and Sindh on the issue. Presumably, it would have been impolitic to assert the old line — we will build it when the provinces agree — as it would have raised the level of bad faith all around.

No one in the past with the best of opportunities and convenient political allies in the recalcitrant provinces could make anyone agree to the dam. President Pervez Musharraf was the best man to try because of his support within the MQM and a very pliant Sindh chief minister in the person of Arab Ghulam Raheem, but both shied away from the topic as they thought they could not survive politically after agreeing to it. Similarly, the MMA clerical government in Peshawar was secretly willing to have the dam but was most reluctant to risk offending the Pakhtun majority in the province.

Punjab is still interested in the Kalabagh Dam, and experts inside Pakistan and at the World Bank support it when it says that the fears of the other provinces are not founded in fact. But the opponents don’t want to hear any expert view. The Sindhi leader Rasul Baksh Paleejo brings his cartload of “research material” to prove that the dam is harmful whenever he is invited to a TV programme to discuss the subject. Also, the world outside is increasingly wary of large dams because of the ecological damage they do to the environment and the suffering they impose on communities they displace. In India, for example, where big dams are planned, civil society movements are afoot to oppose them.

The verdict is that dams, while they produce cheap electricity and store water for irrigation, tend to silt up and become useless with the passage of time. Today all the big dams in Pakistan including Tarbela and Mangla are silted up by 30 percent, and the Mangla wall is to be raised to make it useful for a few more years. The Kalabagh Dam was proposed to be built on the Indus 15 miles north of Kalabagh in Punjab with a height of 260 feet and a length of 11,000 feet with a storage capacity of 6.1 MAF. It was to generate 11,750 kilowatt-hours of cheap electricity and irrigate 2.4 million additional acres. Its cost in 2000 was $10 billion. It was to take 10 to 15 years in construction.

Pakistan is externally under embargo for building nuclear power plants because it didn’t sign the NPT; now it is under a worse internal embargo on the building of dams. Last week, the nationalist Jiay Sindh party demonstrated in Sindh saying it would oppose even the Basha Dam which is not rejected by ANP so far. Basha is a long way off and will take much longer than the gas coming through in the Iran-Pakistan-India pipeline. But one can’t blame people who support the Kalabagh Dam because Pakistan really has no way out of its energy crunch.

The political well-being of the federation stands in the way of any agreement on distribution of our waters. The Indus Basin Treaty between India and Pakistan of 1960 was possible only after Pakistan recognised that an absence of treaty would favour the upper riparian India. As separate states, Sindh and Punjab — like India and Pakistan — would have to have a waters treaty, inclusive of upriver dams, or Sindh would go dry. The NWFP would be forced to go into a treaty with Punjab because of the sheer inequality of power, like India and upper riparian Nepal. But as a federation, Pakistan must pay heed to the increasingly hostile anti-dam sentiment among the federating units.

Pakistan can build the Basha Dam, but in view of the energy emergency it can “devolve” its policy and focus on smaller local dams. There is no doubt that after the abandonment of the Kalabagh Dam, the Iranian gas pipeline project has assumed a crucial make-or-break significance for Pakistan. But this requires a smoother equation with India and more strenuous diplomacy in Tehran and Washington. The needs are all urgent in the short term today; the feasibilities for big dams can be go on but there is a need to go for dams that can be completed in five years. *

Daily Times - Leading News Resource of Pakistan

 

[Neo]

IMF suggests government to bring fiscal deficit down to 6.5 percent ​

ISLAMABAD (May 28 2008): The International Monetary Fund (IMF) has suggested Pakistan to bring fiscal deficit down to 6.5 percent by June 30, besides broadening the base for substantial increase in revenue by taxing the new areas in the upcoming budget.

Sources said the fund also recommended to the policymakers to make a shift to do away with the policy of relying on borrowing for expenditure and instead generate more revenue to help the economy bear shock of the globally high oil prices. A mission of the fund gave the recipe to the policy-makers in Islamabad for overcoming the financial woes after a detailed review of the economy.

The mission is in Islamabad for the last 10 days for a review of Pakistan's economy and gave its suggestions to the policymakers to overcome the weaknesses. The mission held a number of meetings with the government economic managers during its stay. It suggested a complete overhauling of the privatisation programme to off-load public sector entities and get out of businesses as early as possible and leave the job for the private sector.

The government economic team apprised the mission about the measures being taken to reduce the impact of the rising oil prices and a global economic crisis on the economy. The mission was informed that Pakistan's economy was doing good despite some setbacks such as high oil prices and some untoward incidents in the second half of 2007.

The mission was also told that the government was following a conscious approach to achieve the target of fiscal deficit without allowing inflation to increase to hurt the pro poor section of the society.

The sector wise presentations given to the mission indicated that Pakistan's economy was not doing bad in the given international scenario when the oil prices were all time high and making difficult for the weak economies to absorb the shock. They also showed that Pakistan was comfortable enough on the balance of payments issues as its inflows were showing healthy trend against the outflows till the end of the current fiscal year.

Other factors which will help Pakistan make good at the end of the current fiscal year on economic front were good inflow of remittances and income from non-traditional sources such as bonds and global depository receipts (GDRs) floated by major Pakistani concerns in 2007-08.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Rs 365 million Swiss grant for NWFP ​

PESHAWAR (May 28 2008): The NWFP government, Swiss Development Cooperation (SDC) and Inter-Cooperation (IC) has signed a memorandum of understanding (MoU) to forge partnership for implementation of livelihood programme, aimed at improving the living standard of the people in five rain-fed districts of the province and Kurram Agency.

Swiss Ambassador to Pakistan Markus Peter, NWFP Senior Minister for Planning and Development Rahimdad Khan, Minister for Population Welfare Salim Khan, Additional Chief Secretary Javed Iqbal and administrative heads of various government departments attended the signing ceremony at a local here. Planning and Development (P&D) Department Secretary Mohammad Ikram Khan, SDC Country Director Pius Rohner and Esther Haldimann of Inter-Cooperation signed the MoU.

The P&D Department and Inter-Cooperation will jointly implement the programme, spanning over six years. As per the MoU, the Swiss government will provide a grant of Rs 365 millions for phase-1 of the programme extended over three years.

Speaking on the occasion, Senior NWFP Minister Rahimdad Khan said that the Frontier province was faced with huge challenges because of its geographical location, repercussions of situation on its western border, militancy and extremism, low investment in human capital and a weak private sector that contributed to make it the poorest province of Pakistan.

He said that poverty in NWFP was widespread as 37 percent population in the rural areas was living below the poverty line. The devastating quake of October 8, 2005, he said, caused tremendous losses both in the shape of life and property in five districts of the province where the government had initiated rebuilding the damaged schools, hospitals and other infrastructure facilities that was putting additional burden on the resources of the province.

He expressed the hope that they would accomplish this task with the help of Almighty Allah and support from the friendly countries like the Swiss government. He further said that Frontier province had been richly endowed with sincere manpower, diverse climate, natural resources and scenic beauty that, if utilised properly, could help in bringing prosperity to the province and its people.

He said that development of Frontier province was vital for the stability of the region due to its strategic location. He said the livelihoods programme would improve the quality of life and reduce vulnerability of marginalised communities in the districts of Chital, Buner, Karak, Swat, DI Khan and Kurram Agency. He said besides promotion of social sectors, the sector of agriculture too was at the top of the provincial government's development programme, as this would help the province achieve the goal of self-sufficiency in food.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'Mishandled' Gwadar Port project to be investigated: Kaira ​

KARACHI (May 28 2008): Federal Minister for Port and Shipping Qamaruzzaman Kaira on Tuesday said that the government would probe into, what he said mishandled Gwadar Port project. "Deplorably, Gwadar Port is a mishandled issue as it is still lacking the connectivity network...there is no electricity there, rail route, roads nothing," Kaira told mediapersons at the inaugural ceremony of Rs 150 million KPT Overpass here at Karachi Port on Tuesday.

"Transparency is lacking in the Gwadar Port project and proper probe would be carried out," he added. To a question regarding dispute over land between the Karachi Port Trust (KPT) and Sindh government the new federal minister said he had discussed the matter with Chief Minister Qaim Ali Shah and a meeting would be held within next few days to resolve the issue.

On withdrawal of army officers from KPT, he said the prime minister and the army chief had issued directives and the pullout process would be completed gradually. When asked if the PPP-led government would let the foreign forces to conduct a search operation inside Pakistan, Kaira said such news had no authenticity adding, "this has been our stand that no foreign forces would ever be allowed in Pakistan."

Earlier, addressing the inauguration ceremony, which was attended by secretary ports and shipping, chairmen Port Qasim Authority (PQA) and Gwadar Port Authority, government officials and a large number of representatives from shipping circles, Kaira lauded the KPT and its chairman for developing Karachi into economic hub. But despite all these developments, he said, we have to move forward as we still have the capacity to do a lot.

Hailing the KPT for fulfilling its social responsibilities like construction of KPT Overpass, the minister urged the Trust to allocate some budget for the development of poor fishermen. "The areas, where they live, need development in terms of infrastructure and skill development... educate their children and equip them with technical skills," said Kaira amid rousing applause from the workers section of the hall.

He said that government's target would be the betterment of labour and common man but the latter would also have to do hard work and show responsible behaviour. Earlier, the KPT chairman briefing the gathering on different pioneering said inauguration of the KPT Overpass had marked the completion of KPT project Development and Rehabilitation of M. A Jinnah Road (from Jinnah Bridge to Keamari Boat Basin).

The chairman said the KPT had given preference to the logistic network, which was a prerequisite for the ports to handle transhipment cargo for the landlocked Central Asian countries bordering Pakistan. The 700-meters long Overpass, Hayat said, would provide direct linkage to heavy traffic entering the port area and trailers would no more form queues and block traffic movement on M A Jinnah Road.

He said trailers from Timber Pond area would ascend the Overpass, which has a designed life span of 50 years, and enter the port area. Earlier, the federal minister visited the KPT Head Office and was briefed by the chairmen KPT, PQA, Gwadar Port Authority and Pakistan National Shipping Corporation. Later, the minister and Chairman KPT unveiled the plaque to formally open the overpass for traffic.

APP adds: Minister for Ports and Shipping, Qamar-uz-zaman Kaira has said Gwadar Port cannot be operational before the year 2011 as it lacks required infrastructure and communication network and utilities.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

India dragging its feet on IPI project: Qureshi ​

ISLAMABAD (May 28 2008): Pakistan believes that India is "dragging its feet" on the Iran-Pakistan-India (IPI) gas pipeline, and has told External Affairs Minister Pranab Mukherjee that if New Delhi continues to hesitate, Islamabad will soon go ahead and sign a deal with Iran.

In an exclusive interview in Islamabad, the first to an Indian newspaper after the formation of the newly elected government in Pakistan, Foreign Minister Makhdoom Shah Mahmood Qureshi said he hoped to get a reply on this issue when he visits New Delhi in June. Qureshi also said Pakistan was ready and willing to "incorporate India's concerns" on Siachen and that he had given a package proposal on this issue to Pranab Mukherjee during his last week's visit to Islamabad.

With the newly elected government-led by the Pakistan People's Party, Qureshi said the time was ripe for new opportunities. That was why Prime Minister Manmohan Singh should visit Pakistan this year, he added. "If he (the Prime Minister) wants to leave his name in history, he must come. If he misses this opportunity, it will be sad for all of us," Qureshi said.

On the Siachen issue, he said: "I personally feel the Indian political leadership understands the significance of what I am saying. I am told it is the Indian Army that is a bit reluctant on the Siachen issue." The dark hint, that there are grave differences between the Indian political leadership and the army on the Siachen issue, is lost on no one in Pakistan. Pakistani leaders have often said, off the record, that the Indian Army is preventing a deal on Siachen by invoking fears of a Pakistani reoccupation of the heights once the Indian troops come down.

But, for the first time in recent years, a senior Pakistani leader has come on record and stated the unspoken. Time and again during the interview, Qureshi pointed out that a buoyant economic relationship could significantly help improve the political atmosphere, and vice versa, and that the resolution of the Siachen issue was one such matter.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Musharraf seeks WB support ​

Thursday, May 29, 2008

RAWALPINDI: Underscoring the need for hydro-power projects and storage dams in the country, President Pervez Musharraf on Wednesday looked forward to the support from World Bank to help Pakistan achieve its priorities of overcoming energy, water and food shortages.

The President was talking to Praful C Patel, Vice President, World Bank who called on him here at Presidential Camp Office. Syed Naveed Qamar, Minister for Finance and Economic Affairs was also present in the meeting.

He also highlighted the need for developing infrastructure links between China, Pakistan and Central Asian Republics. The President reiterated that one of the major causes for South Asia not being able to exploit the benefits of regional cooperation is the non-resolution of the Kashmir issue.

President Musharraf appreciated the role of World Bank in Pakistan’s socio-economic development and its support to help invest in infrastructure and social sectors, particularly, health and education. He lauded the role of Patel, in particular, during his five year tenure as Vice President for South Asia.

The Vice President World Bank congratulated the President for the economic progress achieved by Pakistan under his leadership. He applauded the impressive growth of 7.5 per cent maintained by Pakistan on average during the past 5 years under a difficult international scenario. He appreciated the commitment of the present economic team and was optimistic that the economy will once again continue its upward path.

Patel thanked the President for continued support and dialogue with the World Bank during his tenure. He expressed his confidence in the economic fundamentals of Pakistan, whereby the current dip could be followed by the required growth after taking corrective measures towards the macro economic condition.

Patel affirmed that the World Bank would continue to be a partner in the development of Pakistan and would provide necessary assistance in key areas like water and power, infrastructure, education and other social sectors and poverty alleviation.

WB team meets Zardari: Pakistan Peoples Party Co-Chairman Asif Ali Zardari said on Wednesday that his party will continue to work with multilateral institutions to introduce economic reforms in the country, but all such steps have to be people-friendly.

He was talking to a delegation of World Bank that called on him here. The delegation was led by the Bank’s Vice President Praful C Patel, comprised Yusuopha Crookes, Country Director Pakistan, Said Habsy, Operation Advisor for Pakistan and Robert Floyd, Country Coordinator for Pakistan.

Asif Zardari urged the World Bank officials to consider increased funding for Pakistan for investment into projects like canal lining that can be helpful for water conservation and small dams, so that irrigation can be introduced for larger areas of the country. He stressed that the benefits of such projects should reach wider rural segments of the society.

Musharraf seeks WB support