Pakistan Economy - News & Updates - Archive

[Neo]

Modern industrial park to be set up: Punjab and China joint venture signed​

LAHORE (November 22 2008): Punjab government with the co-operation of Shen Zen province of China will soon build a modern industrial park equipped with latest IT facilities and technology. Punjab government will provide land for the purpose while, Chinese province will invest in the project and support with modern technology.

An agreement was signed in this regard during the visit of Punjab Chief Minister, Mian Muhammad Shahbaz Sharif to the world known industrial park of Shen Zen, said a message received on Friday. The CM during his visit offered co-operation to the Mayor of Shen Zen regarding construction of a similar park in Punjab to which, the Mayor agreed.

The Mayor further said that he had received especial instructions from Beijing to extend all out co-operation to Punjab CM. He issued instructions to the concerned authorities to prepare documents of the agreement immediately for fulfilling Shahbaz's desire.

Hence, a Memorandum of Understanding was drafted and signed between Shen Zen and Punjab province. The Director General Industries of Shen Zen and Secretary Commerce and Investment, Punjab signed the document. It may be mentioned that annual GDP growth of Shen Zen industrial park is $100 billion and it is a leading park at international level in IT sector.

Speaking on the occasion, Shahbaz said that he would always cherish the hospitality extended to him and his delegation by the government and people of China during his visit. Shahbaz said that Chinese authorities have taken memorable steps for the people of Punjab regarding agreements for joint ventures, which is a proof of the generosity of the host and entrepreneurs with regard to mutual co-operation in various sectors.

Further, the CM said that he is grateful to Chinese government and investors and assures full co-operation on behalf of Punjab government. He said that the agreements during his visit would leave a positive impact on Punjab's economy as well as the whole country.

Furthermore, mayor of Chinese Province, Shen Yen, Lou said that Chinese people are anxiously waiting for the visit of Chief of Pakistan Muslim League-Nawaz, Mian Muhammad Nawaz Sharif to China.

He said that Nawaz will be given rousing welcome on his arrival 'Services of Nawaz for strengthening the bilateral relations would never be forgotten,' he said and asked Punjab CM to convey his message to the PML-N leader that Chinese people wanted to see him among themselves as soon as possible. It may be mentioned that Chinese Ambassador to Pakistan during his meeting with Nawaz has also extended invitation for visit to China.

 

[Neo]

KPT handles 12.94 million tons cargo​

KARACHI, Nov 21: The Karachi Port handled 12.94 million tons or 12.72 per cent more cargo during the first four months of the current fiscal year (2008-09), compared to 11.48 million tons handled during the corresponding period of last year.

According to official figures, there was a substantial increase in the number of vessels called at the port during the period under review.

A total of 735 ships were handled during July-October as against 652 ships handled in the same period last year, showing an increase of 12.73 per cent in ship handling.

Similarly, container handling also increased from 374,653 TEUs to 413,384 TEUs, showing an increase of 10 per cent as compared to the corresponding period of last year. This means that daily cargo handing (import and export) increased to 105,209 tons during July-October period of the current fiscal year from 101,620 tons of the corresponding period of last year.

The Karachi Port handled 37.2 million tons cargo during the last fiscal year (2007-08) compared to 27.7million tons handled by Port Qasim.

However, when performance of both the ports is compared with regional ports, it is pathetic and it could easily be stated that they are victim of lethargy and inefficiency, ports and shipping experts said.

 

[Neo]

Pakistan to manage $9bn soft loan ​

plus $4.6bn from IMF: Tarin​

Sunday, November 23, 2008

ISLAMABAD: The country will be receiving $4.6 billion from International Monetary Fund (IMF) during the current fiscal 2008-09 after getting a formal nod form the IMF Executives Board which is going to take up Pakistan’s case on Monday (Nov 24) in Washington.

“In case of approval, Pakistan would receive $7.6 billion from IMF in seven quarters till 2010. The country will start paying back the $7.6 billion soft loan to the Fund from 2011 with an interest rate of 3.51 per cent for the first three installments and 4.5 per cent for the next four tranches,” Shaukat Tarin, Advisor to Prime Minister on Finance told The News on Saturday in an exclusive talk.

The country’s foreign reserves which currently stand at $6.6 billion would jack up to $9.7 billion in the next week with the first tranche of IMF amounting to $3.1 billion.

However, by June 30, 2009, Pakistan will have $4.6 billion from the Fund out of $7.6 billion. Tarin, who is going to UAE on Monday November 24, with President Asif Ali Zardari on an official visit, said that country would manage to get $9 billion soft loan in toto during the current fiscal year including $4.6 billion from the Fund.

The soft loan in addition to $4.6 billion would, by June 30, 2008, include $1 billion from World Bank, $1.5 billion from Asian Development Bank (ADB) out of which $500 million has already been paid to Pakistan, $500 million from Islamic Development Bank, $500 million from China (already paid) and $500 million from DFID.

Discussing the post-$9 billion soft loan situation, the minister said that the real exam of the government would begin soon, as within the next 2 years it would have to improve its economic indicators particularly inflation and the current account deficit.

Two years from now, the international market would be opened for Pakistan, as by then, the country’s rating would have improved.

Painting the picture of a future economic landscape of the country, the minister said that the country would, once having improved its economic indicators, experience impetus in flows of Foreign Direct Investment (FDI) and increase in remittances flows.

When asked if the Fund would disburse every installment to Pakistan after examining the execution of certain conditions/targets to be set for every quarter, the minister said no. He said that the loan would be given on our terms which would be fulfilled by the government.

To a question about the much trumpeted Saudi oil facility, the minister said that his Saudi counterpart is in USA at the moment, and when he is back in Saudi Arabia, he would soon go to the Kingdom for an exclusive meeting on the issue.

About the UAE visit, the minister said that he would divulge the issues to be taken up with UAE government after the visit. However, he said that UAE’s role is very important in the Friends of Pakistan platform.

The minister said that the government is working on various tools in the national saving schemes to generate liquidity, including the scheme for expatriate in dollar currency.

However, the country needs expertise on consumer or retail banking to introduce the scheme for expatriates in dollar currency. Because of this scheme, dollar flow would increase in the country as the government would offer interest rate at a higher value than that being offered outside Pakistan. The interest rate in foreign countries hovers around 3 to 4 per cent.

 

[Neo]

NPLs increase to Rs288.37bn from Rs251bn a year ago ​

Sunday, November 23, 2008

ISLAMABAD: Volume of non-performing loans (NPLs) or bad loans held by banks and DFIs during the quarter ending on September 2008, not only increased sizably but net of provisioning as well as net of total loans have also ballooned alarmingly, the central bank reported on Saturday.

At the same time, the other depressing aspect of the data released by the State Bank of Pakistan (SBP) was that cash recoveries went down about 50 per cent as against the previous quarter.

Non-Performing Loans (NPLs) or bad loans are those that remain unpaid for more than 90 days. Every Bank and *** is allowed a limit of bad loans by the SBP. Crossing that limit is considered financially unhealthy for the bank.

SBP data show that the bad loans or NPLs stood at Rs288.37 billion at the end of September 2008 as compared with Rs251.11 billion at the end of the previous quarter.

NPLs net of provisioning rose to Rs60.93 billion from Rs40.91 billion a quarter earlier. At the end of September 2008, all banks and DFIs reported Rs6.97 billion cash recovery, down from Rs12.29 billion at the end of June 2008. Then NPLs as a percentage of net loans increased to 1.95 per cent from 1.38 per cent in the previous quarter.

Increasing volume of NPLs is indicative of the bank’s traditional inefficiency and lax administration.

Indeed, at a time when both the rate of interest and that of return on deposit are lower than the rate of inflation, the banks and the DFIs need to create adequate fiscal space to be able not to let the depositors suffer heavy losses which they are doing now, without in any way losing their (banks’) own profit margins.

It is worth mentioning, if the depositors continued to be offered a rate of return of less than three per cent while the rate of inflation has gone beyond 25 per cent, the depositors will have no alternative but to take their savings to some other profitable ventures. If the deposits dry up then the banks will have nothing to advance.

While on the other hand, if the banks are charging at least about three per cent less than the rate of inflation on their advances, then they are hardly in the position to do anything about their depositors without first pushing up their interest rates beyond the inflation rate. But, this would stop in its tracks the accelerated investment activity which is being witnessed these days.

The only way the banks can sustain the present rate of return on advances and make it profitable for the depositors to keep their savings in the banks is by saving on the heavy cost of maintaining such a high volume of bad loans in their books.

 

[Neo]

India has $2bn worth of trade potential in Pakistan: Pasha​

Sunday, November 23, 2008

LAHORE: Pakistan might see double digits of imports from India this year as the trade diversion policy of the present regime has already provided India $2 billion worth of potential in the Pakistani market, out of which, India could easily grab a $1.5 billion market this year.

Chairman of the panel of economists appointed by the federal government, Dr Hafeez Pasha stated this while delivering a lecture on the prospects and challenges of regional integration in the South Asia. The lecture was arranged by the SAARC Chamber of Commerce and Industry (SCCI).

Pasha appreciated the government’s approach of diversion in trade that in fact, the panel of economists headed by him also supported.

Explaining his point he said that Pakistanis fear that trade with India would destroy their economy. He said in this context it was more prudent to allow Indian imports selectively for items that we import as raw material or finished machinery from other parts of the world.

He said naturally the Indian items would cost less as almost 80 per cent of the transportation charges would be saved. He said Pakistan in its new trade policy has allowed an additional import of 136 items.

He said Pakistan imports these items from other countries consuming $2 billion foreign exchange. He said same items could now be imported from India at a cheaper rate.

He noted the trade volume between India and Pakistan currently stands at $1.6 billion. Out of these, he added, exports from Pakistan amount to $300 million while imports from India are $1.3 billion. He said Pakistani exports to India have remained stagnant during the last three years while Indian exports to Pakistan are constantly increasing.

He said this year after trade diversion announced by the government of India, Pakistan’s trade volume would reach $3 billion that would make Pakistan the largest trade partner of India in the SAARC region. Currently, he added, Sri Lanka with exports worth $400 million and imports worth $2 billion is India’s largest trade partner in the region.

He said that the time is not right to devise a trade creation policy with India as it would hurt the local industry. He stated that trade diversion policy would impact the foreign supplier of goods to Pakistan. The local industry would not be affected. He said what we would eventually be importing from India, we are already importing from other countries.

Dr Pasha said according to a study conducted by the State Bank of Pakistan a few years back, there are 2646 items common in Pakistan’s import list that are manufactured in India as well. He said the study revealed that if these items are imported from India, there would be a foreign exchange saving of $1.5-2 billion annually.

He noted that all the regional countries fear India’s hegemony in regional trade. He said that Bhuttan, from where India imports cheap hydro-electricity, has a huge trade surplus against all other SAARC countries. India would have to be more flexible in its trade regime particularly for the regional countries. It would have to remove the trade and non-trade barriers against the regional countries, he added.

 

[Neo]

Global financial crisis impact on Pakistan discussed ​

Sunday, November 23, 2008

KARACHI: The government has always been keen about foreign direct investment (FDI) rather than domestic investment -a policy that needs to be reviewed to improve investment in Pakistan, said Professor Dr Abdul Wahab, President, Mohammad Ali Jinnah University.

Addressing a seminar on ‘Impact of global/US financial crises in Pakistan’ organised by Shamrock Conferences International at a local hotel on Saturday Dr Abdul Wahab said no investor invests in any country where his investment is not secure. He stressed the need to improve security in Pakistan as investor always looks for two things one is security and second is return.

He also stressed that manufacturing and investment are the two most difficult tasks in country and government should improve the transparency in investing opportunities.

Pakistan’s past economic performance and inadequate financial discipline have made it difficult to pass through the global crisis with minimum damage, unless, we immediately adopt and demonstrate immaculate financial discipline in coming years, Wahab added.

Syed Ali Raza, Chairman, President and CEO of National Bank of Pakistan was optimistic and said that reverse flight of capital would take place in Pakistan because the world is in turmoil and investor has limited destinations to invest.

He cited the report of a western think tank, which said that in coming future China, India, Iran and Brazil would be the fastest growing economies. We should be confident, that the surrounding countries of Pakistan would become the favourites region for investors and Pakistan could take the maximum benefits in coming future.

He also stated that the country’s banking system was strong and resilient to the challenges of the time.

CEO and President of Shamrock Communications Menin Rodrigues quoted Ban Ki-moon, Secretary General of United Nations that the world needs collective efforts to control current global financial crises before it turns into a human tragedy.

The first session on ‘Policy Framework and Investment Crunch’ included presentations by Ehsan Elahi-SVP and Head of Research, National Bank of Pakistan, and Mir Mohammad Ali, CEO, UBL Funds Management.

The speakers highlighted the methods being used for economic stability by the government and how it could be better regulated for desired results. In the session on ‘Roller Coaster Markets’ the Associate Director, BMA Capital, Sajjad Mankani, and Adnan Afaq, MD, PACRA, suggested ways to capitalize on the changing trends in the market.

Arif Elahi, Director General, Board of Investments (BOI), gave a very candid and positive analysis of the economic progress made by Pakistan, and bright chances of Pakistan successfully averting the impending crisis.

Anjum Nisar, President Karachi Chamber of Commerce, urged the business community to develop new export markets other than Western Europe and US.

Syed Javed Hasan, Chief Executive Officer, IGI Funds, stressed the need for improving Pakistan’s financial discipline on both, individual and government levels, and stressed the understanding that the crisis was not a short-term problem but one that could last longer.

Imran Aslam, President, GEO Television, highlighted the media’s relentless role in pursuing the realities of several issues before us and bringing it to the ears and eyes of people in all parts of the country; he also emphasized the need for training the media in subjects which can help reporters do their jobs better.

Arshad Zuberi, Chief Executive and Editor, Business Recorder while reiterating the issues which have led the country into financial problems asked the educated class of Pakistan, to assist in educating and training the illiterate masses, in order to make them understand the economic issues faced by the country.

The national conference on the Impact of Global / US Financial Crisis in Pakistan concluded with speakers from different sectors, government organizations, financial institutions, trade bodies and media concluded that Pakistan could not avert the current global financial crisis but could exercise restraint and prudence in facing the difficult times ahead.

 

[Neo]

CDWP approves 43 projects worth Rs 75.4bn: Faster road link from Sui to Uch sanctioned​

* Project will provide quick access to Dera Bugti
* Karachi Harbour Crossing, Security Printing Press Karachi recommended to ECNEC​

ISLAMABAD: The Central Development Working Party (CDWP) on Saturday approved and recommended 43 development projects worth Rs 75.4 billion with a foreign exchange component (FEC) of Rs 22.4 billion, including a 57 km long road from Sui to Uch.

The CDWP, which has the authority to approve projects that cost less than Rs 500 million, sanctioned 19 projects on Saturday. The remaining 24 projects, each costing more than Rs 500 million have been recommended to the Executive Committee of the National Economic Council (ECNEC) for approval. The recommended projects have a combined cost of Rs 70.7 billion.

Dera Bugti: Of the two projects in Balochistan, one project titled ‘Construction of Black Top Road from Sui to Uch’ worth Rs 797 million was recommended to ECNEC.

The road link will provide faster access to Dera Bugti, and create employment opportunities and alleviate poverty in the area. Four projects of the water sector, located in Sindh and the NWFP and costing Rs 11.163 billion, were recommended, along with 15 projects in the energy sector costing Rs 26.889 billion. The Water and Power Development Authority will finance a majority of these projects itself.

An allocation of Rs 3.1 billion has already been made in the Public Sector Development Programme (PSDP) 2008-09 against some of these projects.

Projects recommended: The CDWP also cleared the project titled ‘Karachi Harbour Crossing’ and a project of the Security Printing Press, Karachi.

Nine centres for women have been approved in the earthquake affected areas of Azad Jammu and Kashmir (AJK) and NWFP to alleviate the suffering of women.

The project involving a fencing wall around temporary official residence of the president at Naudero was also considered.

A project for the renovation of the President House, approved in September 2005, has been completed and was placed before the CDWP for ex-post facto approval.

In the transport and communication sector, six projects costing Rs 9.801 billion, with Rs 2.567 billion as FEC, were approved.

Two projects of the Higher Education Commission worth Rs 946.496 million, one project of the Social Welfare and Women Development worth Rs 456.126 million and one project of mass media worth Rs 63.150 million, with Rs 28 million as FEC, were also approved.

In the health sector, the CDWP recommended two projects worth Rs 4.085 billion with Rs 1.544 billion as FEC and a project in the governance sector worth Rs 12.822 billion with Rs 10.896 billion as FEC was approved.

Two projects of the industry and commerce sector worth Rs 382.080 million, with Rs 104.650 million as FEC, were also approved in the meeting.

 

[Neo]

Government plans to attract $5 billion *** ​

SIALKOT (November 23 2008): State Minister/Chairman Board of Investment, Saleem H Mandviwalla, has said that government has fixed the target to attain $5 billion Direct Foreign Investment (***) in the country. He disclosed this while talking to Business Recorder here on Saturday at Sialkot Chamber of Commerce and Industry (SCCI).

He said that in order to attain the set target the government has drawn a special line of action for achieving desired outcomes, adding that strenuous efforts are underway to attract foreign investors in different fields. He added, 'We have been making special efforts to bring foreign investment in energy and agriculture sectors of Pakistan for the last 30 years to attain sustainable results in long term investment.'

Expressing his confidence he said that the fixed target of *** would hopefully be achieved easily. The minister revealed that the establishment of "Special Economic Zones" was on the cards in the country. The government would facilitate the business community in special economic zones, adding that the government would soon announce its formal policy in this regard.

Mandviwalla said that under the programme exporter community could develop special economic zones individually in the country for further accelerating the export activities as well as enhancing the export volume. The regular functioning of special economic zones would be helpful in the establishment of new industries, which would ensure a strong industrial base while generate wide opportunities employment in the country he said.

 

[Neo]

Shahbaz's successful visit: huge Chinese investment expected in Punjab ​

LAHORE (November 23 2008): Pakistan Muslim League-Nawaz President and Punjab Chief Minister Mian Shahbaz Sharif during his visit to China highly impressed the Chinese investors which will result in bringing huge Chinese investment in the Punjab province.

During his visit, Shahbaz Sharif explained the cardinal features of his "Economic Vision" and approach towards jacking up the volume and level of economic co-operation between the time tested and trusted partners - Pakistan and China - Pakistan Muslim League-Nawaz leaders said here on Saturday.

They said that China had very close ties with Pakistan Muslim League-Nawaz and the PML-N played an important role in cementing ties between the two countries. The "Economic Vision" of PML-N President was highly appreciated by the Chinese investors and now they are making plans for making investment in Pakistan, the PML-N leaders claimed.

PML-N central secretary finance Muhammad Pervaiz Malik said that Chief Minister Punjab Mian Shahbaz Sharif's visit to China has been very successful which would increase the volume of Chinese investment in the province. It may be mentioned that Shahbaz Sharif held meetings with Chinese side during his 5-day visit about the possibilities and the very bright prospects of investment in Punjab.

Speaking at a function here on Saturday, Malik said, Shahbaz Sharif has achieved the targets of his visit and Chinese entrepreneurs have recognised his administrative and political capabilities. He said that Shahbaz Sharif is dynamic and visionary leader and can meet any challenge. In the present difficult situation, only leaders like Nawaz and Shahbaz can restore the confidence of investors. He said people of the province are very happy over the success of Mian Shahbaz Sharif's visit to the friendly country.

Malik said establishment of modern Industrial Park in Punjab in co-operation with China would not only play important role in strengthening of local industry but also help provide job opportunities to the youth, besides strengthening of economy. He said agreements signed between the Punjab government and mega Chinese companies for co-operation in agriculture, industrial and various others sectors as a result of efforts of Shahbaz Sharif would go a long way in bringing about economic revolution in the country. He said Pak-China friendship is role model and all weather and "Pakistan should fully benefit from China as it has made great strides in all sectors of life."

Another Pakistan Muslim League-Nawaz leader Malik Muhammad Afzal Khokhar, MNA said that IMF bailout package will never help Pakistan to come out of economic meltdown. After taking loan from IMF, Pakistan would be locked economic whirlpool leading it to definite destruction, he said, adding that PML-N chief Mian Muhammad Nawaz Sharif had broken the begging bowl during his tenure.

He said that people had to pay the prices of wrong decision being made by PPP-led government. He said that political agenda of the PPP was contradictory to national interests.

Moreover, according to a message received here on Saturday, Punjab Chief Minister Shahbaz Sharif held discussion on mutual co-operation in the areas of power generation with the Independent Power Producers Forum at Hong Kong. Shahbaz briefed the power producers about the potential in energy sector in Pakistan and especially in Punjab. He laid especial emphasis on environment-friendly power generation.

 

[Neo]

Trade diversion policy: imports from India can save 80 percent transportation cost, says Pasha ​

LAHORE (November 23 2008): The renowned economist Dr Hafeez Pasha, while delivering a lecture on "Prospects and Challenges of Regional Integration in South Asian Region" arranged by Saarc Chamber of Commerce and Industry, feared that Pakistan imports from India, because of the present government trade diversion policy, could be doubled by the end of this year.

Being chairman of the panel of discussion, Pasha said that India could easily capture Pakistan's market by exporting goods worth 1.5 billion dollars. He said that Pakistan government has allowed the import of 136 items from India in its trade policy, which were earlier being imported from other countries. The import of these items from India can help Pakistan to save 80 percent of transportation cost.

The import of these items from other countries that consumed over two billion dollars annually could be now imported from India at cheap rates. The trade volume between Pakistan and India stands at 1.6 billion dollars out of which we import goods worth 1.3 billion dollars against our exports of 300 million dollars only, he added. He further said that Pakistan imports are rapidly rising while our exports to India are stagnant. He was of the view that the import of selective items from India is in the interest of Pakistan thus there should be no fear in this regard.

In the backdrop of new trade diversion policy announced by the government, the trade volume is likely to increase to three billion dollars. As a result, Pakistan would become largest trade partner of India in the Saarc region. Sri Lanka is present biggest trade partner of India, which imports goods worth two billion dollars against the 400 million dollars exports.

While advocating trade with India, Pasha said that it was not suitable time to devise a trade creation policy with India as it could cause damage to the local industry. The trade diversion policy would affect only foreign supplier of goods to Pakistan while the local industry would not be affected because we would be importing the same items from India which we are currently importing from other countries, he maintained.

Referring to a State Bank of Pakistan study that was conducted few years back, that there are 2,646 common items in Pakistan's import list that are manufactured in India also. If we import these items from India, it could save a foreign exchange amounting to 1.5 billion dollars to two billion dollars annually. Pasha, however, said that India would have to be more flexible and remove trade and non-trade barriers against the regional countries.

 

[Neo]

Expected fuel shortage may hit country within week ​

ISLAMABAD (November 23 2008): The expected shortage of fuel is likely to hit the country within the week, informed sources told Business Recorder on condition of anonymity. Airlines including PIA are also likely to face jet fuel shortage due to lower production by oil refineries.

Reliable sources said that Shell has issued a warning letter to the Civil Aviation Authority (CAA) asking it to make alternative arrangements due to falling jet fuel stocks. Any shortage of jet fuel could disrupt the Haj flights and PIA and other airlines' operations, sources said.

Shell informed the CAA that the company was facing shortage of jet fuel due to lower production by oil refineries. Shell has also noted that its stocks could deplete due to oil refineries' low production. It urged the CCA to make alternative arrangements for PIA. Sources said that Karachi airport was receiving fuel from two oil refineries - PRL and NRL. PRL is shut for one week and the NRL was operating at 50 percent capacity, which has resulted in shortage of fuel for airlines.

They said that Shell is the supplier of jet fuel to PIA together with Pakistan State Oil (PSO) and Chevron. Shell also provides fuel to PIA (Karachi terminal). The three fuel suppliers will hold an emergency meeting on Monday in Karachi to review the fuel supply situation of jet fuel.

These major fuel suppliers were also relying on the local oil refineries for jet fuel supply to PIA. Shell has warned the CAA that its stocks of jet fuel were going to dry out and asked the authority to make alternative arrangements in case of fuel stock shortage. The Oil Marketing Companies are facing the same situation with respect to jet fuel stocks.

Sources noted that these OMCs had been pointing out the gravity of the situation but the government was stressing that the oil refineries must provide jet fuel to the airline. They said that after the government requested the oil refineries to provide petrol to OMCs to meet the requirements, they dropped the production of jet fuel. Local oil refineries were providing both jet fuel and petrol and these two products were not being imported.

The consumption of jet fuel by airlines had increased due to Haj flights and the production by oil refineries has been reduced as compared to consumption. Sources said that if the stocks of jet fuel dry out, these flights may try to access more fuel upon arrival in Riyadh. If this happens, scarce foreign exchange would be used to make the payment, sources added.

Shell was providing fuel to PIA in Karachi and Islamabad whereas Pakistan State Oil (PSO) was covering the PIA flights in Lahore. They said that if Shell and Chevron stopped fuel supply to PIA, PSO will be the only entity bearing the burden of supplying fuel to PIA.

When contacted, Abid Ibrahim, spokesman of Shell, said that Shell was unable to meet the demand for jet fuel by PIA at Karachi Airport. He also confirmed that Shell administration had written a warning letter to Civil Aviation Authority highlighting the shortage of jet fuel due to lower production.

 

[Neo]

Government setting up 50 megawatts solar energy plants: Shahbaz ​

LAHORE (November 23 2008): Chief Minister Punjab Muhammad Shahbaz Sharif has said that Punjab government was undertaking a comprehensive plan to establish 50 MW solar energy power plants in the province. This was revealed in a information received from Punjab Government here on Saturday.

According to the information, the CM has assured Hong Kong Independent Power Producers Forum that the government would buy all electricity produced by them in the province. Shahbaz invited Hong Kong Independent Power Producers to visit Pakistan and personally examine the investment opportunities existed there. During his five-day visit, Shahbaz met businessmen, bankers and educationists

 

[dr.umer]

Pakistan seeking Utah business ventures​

Pakistan's ambassador to the United States, Husain Haqqani, touted his country Friday as a promising arena for Utah business owners eager to expand internationally.

Haqqani, who was named Pakistan's ambassador in May, told Utah business leaders gathered at a luncheon sponsored by The World Trade Center of Utah there are many opportunities in his country, particularly in the areas of energy and agricultural development.

"Anyone who is involved in power production and energy development would be welcomed with open arms to Pakistan," Haqqani said, pointing out that his country currently is plagued by a shortage of power generating facilities.

And much the same can be said of Pakistan's agricultural industry.

In recent years, Pakistan's government was run by "urban sophisticates" who had little use for "rural yahoos," Haqqani said. Consequently, Pakistan saw under-investment in agriculture despite its vast territory and long agricultural tradition.

Edward Jackson of Salt Lake City-based Sweetwater International, an agricultural management concern that currently is managing the construction of a dairy in northern Pakistan, agreed that there are opportunities up for grabs.

"Nestle Foods operates a processing plant there that every day is short 200,000 liters of milk [to meet demand], and that is just what is necessary to serve their existing customer base," Jackson said.

Lew Cramer, chief executive of the World Trade Center of Utah, noted that last year Utah exports to Pakistan were valued at $25.5 million. "That is particularly impressive considering the total was only $800,000 just five years ago."

Of those exports, over 96 percent involved transportation equipment, with the second largest category machinery and manufacturing supplies.

Haqqani said the political uncertainty that marked Pakistan's past is now abating with a new democratic government that he described as committed to the rule of law and providing the necessary protection for all investors in the country.

Cramer said one of the keys to successfully doing business in Pakistan is finding the right partner. And Haqqani said he is willing to help Utah businesses make the right connections so they can be successful in his country.

Still, Cramer said Utah business owners who want to do business in Pakistan should have a "high risk tolerance" for ambiguity and "long-term returns."

 

[dr.umer]

Cuba assistance in Hepatitis B vaccine filling technology​

ISLAMABAD—Ambassador of Cuba Gustavo Machine Gomez has offered Pakistan technology of filling capsules with vaccine of Hepatitis B and Interferon which can be supplied to Pakistan in bulk.

The Ambassador talking to Minister for Health Mir Aijaz Hussain Jakharani here said Hepatitis B Vaccine can be made available if a formal request is made to Cuban Government after approval of the Cabinet and Joint Economic Commission of Cuba and Pakistan.

He also offered other vaccines like Pantavalant Vaccine. He apprised the Minister that the Cuban Government has offered 1000 student scholarships to the government of Pakistan and presently there are 956 students studying in various medical colleges in Cuba.

During meeting both discussed matters including expansion of cooperation between the two countries in the field of Medical Education, Public Health especially Primary health Care and supply of Hepatitis-B Vaccine.

The envoy informed the minister that Cuba has infant mortality rate of five per thousand against Pakistan’s 78. He also mentioned that Cuba has one doctor for 123 persons while Pakistan has one doctor for 1300 persons.

The government of Cuba achieved better results in health sector by establishing small health units which provide primary health care services and preventive health care services, he added.

The Minister appreciated the achievements of Cuban Government in the health sector. He emphasized to strengthen the primary health care services in Pakistan with the support of Cuban government.

He said “Unless and until we improve our primary health care and preventive health care, we cannot achieve tangible results.”

The minister expressed the hope that mutual cooperation between the two countries in the health sector will be further strengthened.

The problems of Pakistani students in Cuba also came under discussion. The Ambassador invited the Minister to visit Cuba and meet students there and examine the health system of Cuba.

He said that unless and until we can not improve our Primary Health Care and Preventive Health Care, we can not achieve tangible results.

The problems of Pakistani student s in Cuba also came under discussion. The Ambassador invited the Health Minister to visit Cuba and meet the students there and study the health system of Cuba. He also congratulated the Minister on his appointment as Minister for Health.

The Minister emphasized to strengthen the Primary Health Care Services in Pakistan with the support of Cuban Government. He said that the success of Cuban Government is due to the strengthen of Primary Health Care and Preventive Health Care.

 

[dr.umer]

Experts urge strategic approach, support for Pakistan on water challenges ​

WASHINGTON, Nov 23 (APP): Pakistan needs to pursue a strategic approach combining conservation, research, grassroots awareness and international collaboration initiatives to address impending scarcity of water, experts said here at a conference while analyzing criticality of the resource to the country’s future.

American and Pakistani scientists and scholars examined water issues in domestic perspective ‘population, health, energy needs etc. - and touched on the regional context’ availability and flows of the resource - saying the country must assign a high priority to look after the vital security issue.

“There is a logical point of collaboration, I think the next US administration is going to get away from a military emphasis in our bilateral relationship - and collaboration in water issues and health, environmental and economic, energy consequences make it a perfect channel for us to work together in a way that clearly addresses the needs of the Pakistani people,” Robert Hathaway, Director Asia at the Woodrow Wilson Center, said.

Hathaway, who has written extensively on Pakistan’s trade, economic and energy issues, said water is a key issue among the Pakistani provinces as well as in the strategically located country’ relations with its neighbors.

“So it cuts across the board,” he added at the day-long moot, organized by his institution that will also publish deliberations of the conference.

Sarah J Halvorson, an associate professor of Geography at the University of Montana, saw an “enormous opportunity for collaboration among members of the scientific communities of the two countries to deal with a wide range of water related problems.”

“I think there are collaborations going on currently, I think there is a lot more we can do to improve education around science and promoting water science in curriculum. The U.S. and Pakistan can collaborate to raise awareness at elementary and high school level education that help mobilize public involvement in planning and conservation of the resource,” she added.

The Internet can help greatly, laboratory facilities, access to technology, up-to-date texts and new approaches can help reinforce Pakistan’s curriculum in the area of water, the scientist, who is also associated with water supply studies in Pakistan's mountainous areas, remarked.

Kaiser Bengali, national coordinator of the Benazir Income Support Program, presented a broader overview of the water-related issues and possible approaches to their solution.

Domestically, he called for a shift from techno-centric to socio-centric paradigm, saying rather than building more and more new capital, the focus should be on management of the existing facilities and involvement of people for efficient use of water.

On the issue of water flow in the River Chenab, he said, India was insensitive to the fact that winter years are a wrong time to start conservation. He said India’s ham-handed approach to Nepal and Bangladesh and its recent controversial moves vis-a-vis Pakistan demand regional management of the resource.

The Indus Water Treaty has outlasted several security tensions between India and Pakistan but there is a need for political settlement of unresolved disputes, he observed.

He lambasted the previous Pakistani regime for pushing the country into economic mess by cooking up economic figures and said the international community has a moral responsibility to support Pakistan in its hour of difficulty and help strengthen its institutions.

Simi Sadaf Kamal, founder of the Karachi-based organization on water and food security, Hisaar Foundation, pleaded that overcoming paucity of the precious resource involves social construct, organization of production, and its efficient usage. Pakistan, she said, has 140 million acre feet of water that comes into the river system, 95 percent of it is used in agriculture.

Of the 140 million acre feet of water, she revealed, as much as two third is lost to leakages while just one third reaches the farm gate.

“If we could repair leakages in the supply system, a lot of water can be saved.”

“In terms of international cooperation, the essentials of changing the water debate in Pakistan have to come from Pakistan and Pakistanis, they have to have their voice---we need international support in developing some of the solutions--- my contention that is it must come as a response to the needs of what the people come up with.”

Lee Hamilton, former congressman and president of the Woodrow Wilson Center, lauded the participants for discussing various aspects of the water issue as Pakistan moves ahead to face the challenge of the scarce resource. Security and stability of Pakistan should be part of Washington’s agenda, he stated.