Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan to get $700m inflows in March: Tarin ​

Friday, March 20, 2009

KARACHI: Pakistan expects to get $700 million in foreign inflows this month and that will further support its economy which had entered a “safe territory”, the country’s top economic official said on Thursday.

“Pakistan is expected to receive $500 million from the World Bank and about $200 million from the Asian Development Bank this month,” Finance Ministry chief Shaukat Tarin told Reuters.

In addition, Pakistan is also expected to get $840 million from the International Monetary Fund when its board meets later this month.

That would be the second tranche of the IMF’s $7.6 billion 23-month emergency loan programme which was agreed in November to avert a balance of payments crisis. A first tranche of $3.1 billion was released that month.

Tarin said the Pakistani economy had entered “safe territory” as inflation was declining and the current account balance in February recorded a surplus.

Analysts attributed the surprise current account surplus of $146 million in February to lower global commodity prices.

The current account was last in surplus in June 2007.

Tarin said the currency was stabilising, inflation declining and the Karachi interbank rate had fallen by almost 320 basis points this year, allowing the government to focus on a nine-point agenda of priorities.

“In the upcoming budget we will start the nine-point agenda which includes providing a safety net for poor people, focusing on agriculture and manufacturing, human resource development and an integrated energy plan,” Tarin said.

Tarin said Pakistan “may float a bond but it is still too early to say” and that it was monitoring credit default swaps.

“Once the CDS narrows then we will (issue a bond),” Tarin said in response to reports that Pakistan would raise $500 million through bonds by December.

Five-year credit default swaps have fallen to about 2,600 basis points from 3,000 basis points in January but analysts said the spread are still at elevated levels.

Under current levels, it costs at least $2.6 million to insure $10 million worth of debt against default.

Tarin said the United States was trying its best to help Pakistan, an important ally seen as vital to US efforts to stabilise Afghanistan and defeat Al Qaeda.

 

[Neo]

IT exports likely to miss target​

KARACHI: The IT exports are likely to miss the 50 percent growth target set for the financial year 2008-09, as the global economic recession has affected the sector.

The country’s IT and computer services exports have registered 35 percent growth in the last eight months of the current financial year with $124 million as reported by State Bank of Pakistan (SBP). The IT industry has set its exports target at $255 million whereas last year the exports reached $169 million. On the contrary, Foreign Direct Investment (FDI) in Software Development has increased by 97 percent to 16.5 million during the Jul-Feb.

This is the lowest exports growth rate since 2004 because the exports have been witnessing 50 percent growth for the last five years.

Industry people were of the view the world would be experiencing its worst-than-expected economic crisis this year and the business conditions would not be supportive for businesses.

They added IT industry has started feeling the pinch of global economic slowdown as offshore demand of our exports is evaporating. They said the countries exports can be rebound once the resilience appears in global economies when the billion-dollar bailout packages start to stimulate demand.

Managing Director Pakistan Software Export Board (PSEB), Talib Baluch said the global downturn has exerted its impacts on the country’s exports which is temporary in nature as the growth is going to rebound soon on the back of high demand of global IT industry.

He explains that IT exporters have been incurring losses for last three months as their buyers are mostly in banking and automobile sector. “These companies will be provided financial leverage by their respective countries to rebuild their business, therefore, Pakistani exporters will also regain their demand,” the PSEB chief said. The global IT market has capability to attract business worth $475 billion.

United State of America is the largest buyer of Pakistan IT-enable service with the share of 58 percent in country’s exports. It is followed by UK, having ten percent share in total exports. The pie of total exports shows 16 percent share to the other countries including Australia, Canada, Thailand, UAE and others.

Industry experts said that expatriate Pakistanis have shifted their business from their residential countries as they got better opportunities and potential in Pakistan in this sector. They added that IT infrastructure is being built up rapidly in the country owing to tax holidays and availability of cheap labour.

 

[Neo]

FDI during July-January amounts to $2587.7 million​

ISLAMABAD (March 20 2009): The Economic Co-ordination Committee was informed on Thursday that foreign direct investment (FDI) during July-January, 2008-09 amounted to 2587.7 million dollars, registering a healthy growth of 1.3 percent compared with the last years period under review.

In marked contrast, the State Bank of Pakistan reported that the FDI declined by 34 percent between July-February 2009 in comparison to the corresponding period last year.

 

[Neo]

Zardari not satisfied with Iranian gas price offer​

ISLAMABAD (March 20 2009): President Asif Ali Zardari has said that let the new parliament of Iran decides about gas price regarding the Iran-Pakistan-India (IPI) gas pipeline project. Sources revealed to the Business Recorder on Thursday that in a high level meeting held in Presidency on Wednesday, President Zardari expressed dissatisfaction over the gas price to 80 percent of crude oil offered by Iran.

The Iranian government has conveyed to Pakistan that its parliament had approved the gas price offered to Pakistan. Iran warned that it would be free to commit supplies reserved for Pakistan to its other buyers if no agreement reached between the two countries during the current Iranian year, ending on March 20.

"Let the new parliament of Iran decide about the gas price offered to Pakistan as current gas price was higher," sources quoting the President as saying in a meeting. The sources said that the Petroleum Ministry had moved a summary to the Prime Minister, who had directed the ministry to place the matter before Economic Co-ordination Committee (ECC) of the Cabinet that failed to reach any decision on gas price here on Thursday due to observations of some ECC members. They raised concern over the high price of gas offered to Pakistan.

The ECC decided to send the matter of gas price to the Cabinet for approval. The ECC okayed rationalised gas import proposal, and advised the Petroleum Ministry to seek ratification and approval from the Cabinet before signing of gas sales and purchase agreement (GSPA) with Iran.

The sources said that the ECC was informed that Iran had conveyed to Pakistan that it was exporting gas to Turkey at formula, linking gas price to 85 percent of crude oil. Earlier, Iran agreed to link gas price to 78 percent of crude oil, but now it was demanding 80 percent of crude oil. Iran claimed that the said gas price was still lower as compared to the gas price being paid by Turkey to Iran.

It was informed that Pakistan had offered gas price of 70 percent of crude oil that Iran had turned down. Advisor to Prime Minister on Finance Shuakat Tarin, who chaired the meeting, expressed concern over the payment of gas price to Iran as it would be a burden on the national exchequer. The proposal was also considered to import 500 million cubic feet gas per day instead of one billion cubic feet gas per day for power generation purpose only.

The issue of setting up new thermal power plants came under the discussion. The Advisor to the Prime Minister on Finance strongly objected for setting up new thermal power plants to utilise Iranian gas. He said that option of consumption of imported Iranian gas, as energy mix should be worked out in the existing thermal power plants.

The ECC also directed to work out the possibilities of power generation through other resources like wind and coal resources. Members of the committee stressed the need for utilising wind and coal reserves for power generation. The sources said that if the two countries reached an agreement, Pakistan would have to pay 1.5 billion dollars annually for one billion cubic feet gas per day to Iran if the price remained at five dollars per million British Thermal Unit (mmbtu) based on 50 dollars per barrel crude oil price.

After the completion of the project, the consumers will have to pay 17.5 percent return on the assets also that will further escalate the cost of the gas price. The ECC was informed that in January 2007, Pakistan and Iran had agreed on a gas price formula with a crude oil parity of 45 percent.

However, in September 2008, Iran informed that its parliament had not approved the agreed gas price formula, which directed that price of gas exported to Pakistan should be equal to its other exports, namely to Turkey, and accordingly proposed a revised gas price formula to link gas price to 85 percent of crude oil. Later, Iran offered a revised gas price proposal to link it to 80 percent of crude oil, which Iran claims is at a slight discount to the price of gas being sold to Turkey.

 

[Neo]

Pakistan to get good news soon: Iranian envoy​

ISLAMABAD (March 20 2009): Iranian Ambassador to Pakistan Mashallah Shahkari on Thursday said that Pakistan would get good news on Iran-Pakistan-India (IPI) gas pipeline project soon. He said this while talking to media during his visit to the National Press Club here on Thursday.

However, he did not disclose the details of the development regarding the mega project. The Iranian Envoy also said that Pakistan should not allow its soil to be used for the terrorist activities, as terrorist outfit Jandollah, which operates in Iran allegedly have a base in Pakistani. Shahkari said that Iran would extend all out assistance to Pakistan for socio-economic development in every field.

He added that Iran would also help Pakistani exporters for dispatching their goods to Istanbul via Iran. To a question, the Iranian top diplomat said that Pakistani authorities should accelerate their efforts for safe recovery of the Iranian consulate official who went missing from Peshawar some time back.

 

[Neo]

Investment opportunities with Chinese team discussed​

ISLAMABAD (March 20 2009): A four-member delegation of China Mobile Communications Corporation (CMCC), led by its Vice Chairman called on federal minister for Investment Senator Waqar Ahmed Khan on Thursday, and discussed with him investment opportunities in Pakistan.

The Minister appreciated CMCCs investment in Pakistan and encouraged the brotherly relation between the two countries in terms of trade & Investment. He also emphasised on mutual co-operation on economic relations in all sectors of the economy. The minister ensured government of Pakistans support to Chinese investors in all sectors of the economy.

He further highlighted that the present goba1 recession has not affected Pakistan. Therefore, there is still a need for improvement in development of infrastructure, power, construction, telecom and agriculture sectors. The minister also explained the three issues ie law & order, political stability and good governance & transparency in Pakistan, for which the government is committed to improvement. A task force is also being established to address the security concern of the investors.

Waqar pointed out that the recent political decision of the government for the restoration of deposed judges has made major quantum lead in the political stability of the country. The Vice Chairman of China Mobile Communications Corporation shared two issues which ling for consideration with the government. Six percent reduction or import duties on telecom equipment, and the issue of LDI license etc.

He also highlighted that CMPak is a 100 percent subsidiary of China Mobile Communication Corp, the worlds biggest mobile phone carrier by users, acquired Pats Ltd; in 2007. Moreover, M/S CMPak, has invested more than US $700 million in the telecom sector in Pakistan and an additional US $800 million will be invested by the end of 2009.-PR

 

[Neo]

Petroleum Policy-2009 announced; self-sufficiency to be achieved in oil, gas production ​

ISLAMABAD (March 20, 2009): Ministry of Petroleum and Natural Resources Friday announced Petroleum Policy-2009, focussing on accelerating exploration and production activities in the country.

The policy is aimed at achieving maximum self-sufficiency in energy by increasing oil and gas production, Ministry's spokesman G.A Sabri told APP.

He said the government was committed to accelerating exploration and development programme to reverse the decline in crude oil production and increase domestic gas production and supply.

Sabri expressed optimism that the programme would help reduce the burden of imported energy and improve the situation in balance of payments and trade.

Besides, promoting the involvement of Pakistani oil and gas companies in the country's upstream investment opportunities, the policy will promote direct foreign investment by increasing the competitiveness of its terms of investment in the upstream sector.

Under the new strategy, Pakistani professionals would be trained in exploration and production sector for bringing them at par with international standards and creating favourable conditions for their retaining within the country.

While special attention would be paid to promote increased exploration and production activity in the onshore frontier areas by providing globally competitive incentives.

Directorate General of Petroleum Concessions (DGPC) would be established to enable a more proactive management of resources.

The policy also stressed to undertake exploitation of oil and gas resources in a socially, economically and environmentally sustainable and responsible manner.

The petroleum policy has been announced after holding consultations with all stakeholders. Their suggestions and inputs were incorporated for making the policy more effective to achieve the set targets, the spokesman added.

 

[Neo]

Lack of awareness: Pakistani products lack world recognition​

LAHORE (March 20 2009): Pakistani products enjoy quality-edge when they are compared with products of other countries but are falling short of getting a respectable place in the global market only because of lack of awareness about their branding and marketing.

The Lahore Chamber of Commerce and Industry (LCCI) President Mian Muzaffar stated this while speaking at one-day training workshop on "Capacity Building" jointly organised by LCCI Standing Committee on Women Entrepreneurs and Centre for International Private Enterprise (CIPE) at the LCCI here on Thursday. Aasia Saail Khan, Convenor LCCI Standing Committee on Women Entrepreneurs, Senior Programme Manager CIPE Hammad Siddiqui and renowned trainer Ashraf Chaudhry also spoke on the occasion.

The workshop discussed various learning experiences starting from idea generation to developing Marketing Plan and from creating brands to delivering experience. Mian Muzaffar Ali said that a little focus on the capacity building of entrepreneurs could do miracles on the both the branding and the marketing front.

He said that at individual level, the private sector was doing the needful for the capacity building of its workforce but to attain the desired goals, the government would have to play a role. Elaborating his point, he said that the government would have to join hands with the private sector to acquire the services of master trainers for the proper training of the workforce available in the country.

The LCCI would continue to conduct such workshops and seminars for creating awareness among the entrepreneurs, he added. Senior Programme Manager CIPE Hammad Siddiqui, while addressing the participants, said that the market reforms through private enterprise were one of the objectives of the CIPE.

He said that for the last over two decades, the CIPE has worked with business leaders and policymakers to build the civic institutions vital to a democratic society. CIPEs key program areas include anti-corruption, advocacy, business associations, corporate governance, democratic governance, access to information, the informal sector and property rights, and women and youth.

He said that the CIPE was launching a radio programme being developed to help women entrepreneurs. He said that the CIPE partners with business associations, think tanks, and other private sector organisations in countries where there is both a need for progress and an opportunity for reform. CIPEs institutional approach to development recognises that changes will not occur overnight and a long-term commitment is needed for reforms to succeed, he said.

 

[Neo]

Decline in foreign investment​

EDITORIAL (March 20 2009): Foreign investment declined by a hefty 34 percent during eight months of the current fiscal year, according to the State Bank of Pakistan. Overall net foreign investment stood at 1.8 billion dollars end February 2009, reflecting a total decline of 931 million dollars from the comparable period last year.

It is indeed unfortunate that the continuing law and order situation from July to February dampened the enthusiasm of even the most die-hard supporter of investing in Pakistan, resulting in a massive outflow of portfolio investment as well as direct foreign investment.

It is also relevant to note that last year, by end February, the election results were already out with Pakistan Peoples Party emerging as the single largest party with the PML (N) the second largest. Investors were convinced at the time that an era of political stability was at hand, a view strengthened by the then ongoing negotiations culminating in the Murree Declaration of 8 March 2008 between the two major parties.

Slowly and inexorably as many analysts would have us believe confrontation between the two major parties has dissipated all expectations of a possible power sharing deal that would allow the PPP to rule with equanimity in the centre with a similar deal for the PML (N) to rule in the Punjab. The fact that matters came to a head finally on 25 February 2009 is not in debate.

It is feared that the politics of confrontation of the 1990s for which the country as well as the two major parties have paid a huge price, is back. And one visible casualty of such politics is with us today: nearly a billion dollars have left the country. It is no wonder, therefore, that the State Bank ascribes political uncertainty as the reason behind the continued outflow of foreign investment.

That the government is fully cognisant of this state of affairs with respect to foreign investment was amply reflected in a recent statement that President Zardari made to visiting Chief Executive Officer of an Italian oil exploration company Paolo Scaroni: Pakistan offers a level playing field and attractive opportunities to foreign investors.

It is also relevant to note that Shah Mehmud Qureshi, Foreign Minister, in a recent press conference insisted that political stability is increasingly vital for improving our macroeconomic indicators in which foreign investment can play a critical role. Shaukat Tarin the Advisor to the Prime Minister on Finance has also repeatedly stated that political stability is an important ingredient for the success of an economic stabilisation programme that Pakistan is currently on under the guidance of the International Monetary Fund (IMF).

Be that as it may, there is evidence to suggest that political stability remains elusive in spite of restoration of deposed judges to 2 November 2007 position. It is to be hoped that in the larger national interest the two largest political parties seek rapprochement in an effort to ensure that the politically challenging economic programme that is under implementation today can have a chance of success

 

[Durrani]

US preparing to announce massive aid, investment package for Pakistan

Published: March 21, 2009

WASHINGTON (APP) - A high-level US panel reviewing Afghanistan and Pakistan strategy will recommend ‘intense engagement’ with Pakistan, including a massive, long-term increase in economic aid and several helicopters to fight militants along the Afghan border.

The Washington Times Friday reported citing a participant in the 60-day review of US policy that President Barack Obama would announce the policy before he leaves for Europe at the end of the month for a NATO summit. “You will see intense engagement of Pakistan to keep civilian rule intact, to keep the economy from tanking and to increase assistance for counterinsurgency, especially helicopters,” the review participant said on the condition he not be named to avoid pre-empting the president.

The review participant said the Obama administration supports a bill introduced last year by the then Senator and now Vice-President Joseph R Biden, and Sen. Richard G Lugar of Indiana, the ranking Republican on the Senate Foreign Relations Committee.

The legislation, now known as Kerry-Lugar measure, calls for expandling annual US nonmilitary aid to Pakistan to $1.5 billion and guaranteeing it for at least five and potentially 10 years.”

As well the Obama administration is also considering a one-time injection of $5 billion into the pakistani economy to prevent it from further deterioration.

The 10-year time frame is intended to address persistent Pakistani fear that the US is interested only in a short-term tactical relationship,” said a statement provided by the foreign relations committee.

Frederick Jones, a spokesman for the Foreign Relations Committee, told the Times that chairman of the committee Senator John Kerry, a Massachusetts Democrat, intends to reintroduce the legislation soon.

Another element of the strategy is bolstering Pakistan's paramilitary forces. The participant in the Afghanistan-Pakistan review said it makes economic as well as political sense to build a bigger FC force because it costs about $ 12,000 a year to support one FC soldier compared with $ 250,000 a year for an American soldier.

“There is also a need for other types of infrastructure development,” the official said, including “health care, education and security, all of these factors will be taken into consideration when finalizing the bill”

The Nation | The Nation is the most credible of English Newspapers in Pakistan.

 

[Neo]

China Mobile offers to lay fibre optic cable ​

Saturday, March 21, 2009

LAHORE: China Mobile Communication Corporation (CMCC) has offered to lay a fibre optic cable from Karakoram to Gwadar.

The offer was made by a Chinese delegation which met Adviser to the PM on Interior Affairs Rehman Malik with a condition that it be provided conducive investment environment.

Sources privy to the meeting held in Islamabad told The News that the Chinese delegation was led by Co-Chairman CMCC Zhang Chunjiang and comprised other members and Chinese Ambassador to Pakistan Luo Zhaohui.

Sources further revealed the head of the delegation took up the long-standing LDI (long-distance international) licence issue with the adviser.

Chunjiang pointed out that despite getting approval from the prime minister and the cabinet and clear directives from the ministry of information & technology, the PTA has refused to issue LDI licence to China Mobile.

Such actions from the side of Pakistani authority of refusing could limit investment in this sector of the industry, they said. They further revealed that the delegation mentioned that due to non-issuance of LDI licence, Zong has been paying a huge amount for using other network for international roaming.

CMCC Co-Chairman had also mentioned that one month back Federal Minister for Investment, Senator Waqar Ahmed Khan, also gave assurance for issuance of LDI licenses within two weeks but so far no action was made and the issue of getting LDI license remained unsolved.

The meeting has also informed about the China Mobile future plans to invest another $500 million in the country’s economy during 2009 in the areas of building new network capacity of more than 20 million customer base and other infrastructure. The delegation had pointed out that the company had so far invested $1.66 billion in Pakistan and has generated more than 1,700 direct and over 40,000 indirect jobs in the country. Similarly, China mobile had paid $106 million in direct taxation and paid another $91.5 million under various heads to the government. The delegation asked the adviser for providing a level playing field to all the stakeholders of the cellular industry.

 

[Neo]

Policy won’t help raise power generation for five years: industry ​

Saturday, March 21, 2009

KARACHI: After months of delay, the government on Friday finally announced Petroleum Exploration and Production Policy 2009 in a desperate attempt to deal with severe energy crisis, which has angered the public and reduced industrial output.

The policy, which seeks to increase indigenous production of gas by offering better price to exploration and production companies, has come out at a time when countrywide power breakdowns have compounded the miseries of citizens, industry people said.

About 50 blocks will be auctioned under the new policy in the next few days but that will not increase much-needed fuel supplies for more electricity generation for at least five years, they said.

The continuing militant insurgency in Balochistan might also discourage companies from drilling in the risk-prone but the most prospective southern province, a senior government official said.

Widening gap in supply and demand of gas was in part responsible for the power crisis last year when the country had to spend billions of dollars to import fuel oil for running its thermal power plants.

Shortfall of gas has reached such a proportion that industry people say will be impossible to meet the existing and latent demand without import.

“Deficit is so severe that exploration within the country alone will not be able to meet it,” chief executive of one of the E&P firms told The News. “Pakistan must aggressively pursue pipeline options to add around three to four billion cubic feet per day for its use.”

No reliable figures are available to ascertain the exact shortage of gas but some estimates indicate that existing demand has exceeded supply of 3.9 bcfd by 20 per cent.

Natural gas meets over 47 per cent energy needs of the country, being the most used fuel in the industrial, power and domestic sectors but shrinking supply has now started to deprive even existing consumers.

The only initiative to secure additional supplies that has moved forward beyond closed-door official meetings is the Mashal LNG import project, launched by President Musharraf’s government.

“Incumbent government needs to be very cautious in its approach to the LNG project as it is the only option left for meeting our energy needs in the short term,” an official close to the project said. “Hopefully, work on it will start by year-end.”

A consortium led by 4gas is in the process of finalising technical details related to the project, which will supplement gas supply by 500mmcfd (1000mmcfd = 1BCFD) upon completion.

He said it was a wishful thinking on the part of politicians to believe that a gas pipeline project with Iran will materialise anytime soon. “It is not even clear where the funding for the multi-billion-dollar pipeline will come from.”

Incentives in 2009 policy: Notwithstanding the fact that the petroleum policy will not be able to address immediate energy needs of the country, it does offer incentives for the industry, aiming to enhance production in coming years.

Additional Secretary Petroleum G A Sabri said complicated and lengthy process of awarding lease areas for exploration work in previous policies has been done away with in the new one.

Producers will also get a better price for gas, he said, adding on average it will be approximately one dollar over existing price.

 

[Neo]

Pak agro productivity better than India’s ​

Saturday, March 21, 2009

LAHORE: Though Pakistan lags far behind in crop productivity compared with global best, yet the impression about better agricultural performance by India is far from reality as credible statistics reveal that productivity of most crops including wheat is higher in Pakistan.

Statistics of the Food and Agriculture Organisation reveal that wheat yield in Pakistan is 2.76 tonnes per hectare compared with 2.67 tonnes per hectare in India. The data shows that in 1980 India was obtaining 1.43 tonnes of wheat per hectare while Pakistan’s wheat productivity per hectare was 1.56 tonnes.

During the green revolution in India in the 1990s, wheat productivity increased to 2.21 tonnes per hectare while Pakistan’s productivity was 1.82 tonnes. Indian wheat productivity increased to 2.77 tonnes per hectare in 2000 against Pakistan’s 2.49 tonnes. Thereafter, Pakistani farmers started catching up with the Indians and by 2007 their per hectare wheat production rose to 2.76 tonnes while Indian productivity fell to 2.67 tonnes.

Experts attribute the rise in wheat productivity mainly to the hard work of the farmers than government policies. In fact, state research institutes have failed to develop any new wheat variety during the past three decades.

The farmers braved soil erosion and scarcity of water through their own efforts and the government provided them no subsidy. Even the subsidy granted on fertiliser in the past two years has not been passed on to the farmers. The challenge to survive in open market economy forced the farmers to work hard and adopt techniques to increase production.

Agricultural experts point out that Indian farmers on the other hand performed well in the initial period of huge subsidies introduced in the 1990s but thereafter became lethargic as subsidies compensated for static production.

Experts, however, say that the relatively better performance of Pakistan in wheat production should not make the planners complacent.

China’s wheat productivity of 1.89 tonnes per hectare was slightly better than Pakistan’s in 1980 but Chinese farmers had increased the productivity by 2.5 times to 4.78 tonnes per hectare by 2007.

The first goal of agricultural planners in Pakistan, the experts say, is to achieve what Chinese have done with improved varieties of wheat seed. Even by doing so, Pakistan could almost double its wheat production. The next aim should be to reach the best global productivity level. For example, Germany, France and the United Kingdom get 7.1, 6.2 and 7.3 tonnes per hectare respectively.

In other crops, India obtains 3.2 tonnes of paddy from one hectare compared to Pakistan’s 3.19 tonnes. China harvests 6.34 tonnes of paddy from the same area of land, which is two times that of both India and Pakistan. Australia is the global best as it obtains 8.1 tonnes of paddy per hectare.

Pakistani farmers obtain 3.34 tonnes of maize from one hectare, India gets 2.15 tonnes, China 5.41 per tonnes while the US, which is global leader in this crop, obtains 9.48 tonnes per hectare.

Garlic production in Pakistan from one hectare averages 8.28 tonnes per hectare while Indian farmers get only 4.38 tonnes. China harvests 17.4 tonnes of garlic per hectare while the global leader in this crop is United States that produces 18.39 tonnes garlic per hectare.

The onion production in Pakistan is 14 tonnes per hectare while it is 13.2 tonnes in India. China obtains 20.53 tonnes onions per hectare while the global best is United States that obtains 55.88 tonnes per hectare.

The average yield of potatoes in Pakistan is 198.8 tonnes per hectare while it is 164.24 tonnes in India. France is the global best as it produces 423 tonnes potatoes per hectare.

Experts point out that by controlling soil erosion, efficient use of water and zero tilling, laser levelling of farms Pakistan could achieve the global best agricultural productivity.

 

[Neo]

Power deficit of 2,500MW: UPS sales increase by 30% ​

KARACHI: The power supply deficit of around 2,500 megawatt during March 2009 has boosted the sales of Uninterrupted Power Supply (UPS) by 30 percent, traders said Friday.

Only during the 20 days of March 2009, an increase of 10 percent has been witnessed in the sales as compared with the same period last year in March 2008, they added.

Due to the proposed higher power tariff and long hours of load shedding the domestic and commercial consumers prefer UPS rather than power generators.

“During May and November 2009, the power deficit will touch around 5000 megawatt, they added.

A wholesaler and member of M A Jinnah Road Electronics Market, A Aziz said the price of a UPS to light up two tube lights and two ceiling fans six hours, having 140 ampere per hour battery capacity now costs around Rs 19,500, while earlier it was available for Rs 15,500.

Despite an increase in the prices of UPS and imposition of regulatory duty on imports, the customers still prefer to purchase according to size of the power requirement, he said.

The average price also witnessed an increase of around Rs 3,500 as the manufacturers have increased their price on the pretext of higher production cost due to higher imports of accessories.

He said despite increase in prices, sales of UPS with a capacity of running two fans and two lights have gone up around 30 percent.

He said the commercial consumers prefer the locally manufactured UPS, but after an increase of Rs 4,000 to Rs 5,000 per unit on different ampere capacity, the sale of four fans and four lights has increased around 20 percent as compared to same period last year.

Aziz said the dealers also take fitting charges with a uniform rate of Rs 1,000 while the consumer has to arrange a battery depending on ampere power according to his energy needs.

He said battery prices vary depending on its power from around Rs 9,500 to Rs 14,500, which was earlier available at Rs 8,500 and above.

 

[Neo]

Balochistan, NWFP Trust Fund to be set up: issues for Friends of Pakistan conference considered ​

ISLAMABAD (March 21 2009): The government has decided to set up Balochistan and NWFP Trust Fund for which Pakistan would seek assistance from Friends of Pakistan group in its conference in Japan on April 17. The decision was taken in a meeting jointly chaired by President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani in Presidency here on Friday.

The meeting reviewed progress on decisions taken in a previous meeting on the preparatory work for the Friends of Democratic Pakistan. Other areas in which the international assistance would be sought include poverty alleviation through social protection, improving the state of national security, human resource development in the areas of education, health and population welfare, food security, infrastructure development.

Foreign Minister Shah Mehmood Qureshi, Advisor Finance Shaukat Tarin, Rehman Malik, Advisor to Prime Minister on Interior, Kamal Majidullah, Advisor to PM for Water Resources, Secretary General Salman Farooqi, Hina Rabbani Khar, Foreign Secretary Salman Bashir, Senator Sughra Imam, Kamal Shah, Secretary, Interior, Shakil Durrani, Chairman, Wapda and other senior officials of the relevant ministries participated in the meeting.

Shaukat Tarin briefed the meeting about the areas that would be brought to the attention of the international community needing special attention of the Friends of Pakistan Group.

Both the President and the Prime Minister underlined the need for updating the brief on Pakistans need for international assistance to make Pakistan economically more vibrant which can ensure durable peace and stability in the region. The President appreciated the efforts made by the team in preparing the document and said that it was an important component in the strategy to fight militants.