Pakistan Economy - News & Updates - Archive

[Neo]

$35bn spent on law, order: Fahim ​

Tuesday, April 14, 2009

KARACHI: Federal Minister for Commerce Makhdoom Amin Fahim has said that the government had already spent $35 billion on improving the poor law and order situation of the country and was ready to spend more on it as security is the highest point of concern for them.

Addressing the business community at the Federation House on Monday, he invited written proposals from them on issues being faced and said that all the major ministries would sit together to discuss them in the first week of next month. In a meeting, Fahim repeatedly stressed the government’s support for the trade and industry and assured them that he would suggest to the prime minister to hold a collective meeting with the latter before the budget was announced. Fahim further stated that a committee would sit to evaluate the performance of commercial counsellors who would then be reassigned on the basis of their re-evaluation.

 

[Neo]

Expats in UK keen to invest in Pakistan ​

Tuesday, April 14, 2009

LAHORE: Expatriate Pakistanis, particularly those living in the United Kingdom, are keen to make investment in Pakistan through joint ventures with local businessmen. UK-Pakistan Chamber of Commerce and Industry Vice-President, Ishtiaq Ahmad stated this while speaking at the Lahore Chamber of Commerce and Industry (LCCI).

Ishtiaq Ahmad, while stressing the need for more interaction between the two sides, urged the LCCI office-bearers to arrange a delegation to the UK to increase volume of the two-way trade. He said that the UK being the fastest growing economy in the European Union, has a huge potential for Pakistani businessmen to have joint ventures with their counterparts there. He said that the process of globalisation is bringing people closer and “there is a need to learn from the experiences of each other.”

LCCI President Mian Muzaffar Ali said that there was no doubt that the UK, being an active member of the European Union, offered tremendous opportunities to Pakistani businessmen but both sides needed well-directed, sector-specific moves to achieve desired results.

He said that Pakistan was particularly interested in the transfer of technology but to materialise the very idea, expatriate Pakistanis would have to play their role. He said that exchange of business delegations and holding of single country exhibitions could boost up the bilateral trade. These marketing tools need to be studied by the chambers and the diplomatic missions of the two countries.

He said that these are the areas where UK-Pakistan entrepreneurs could sit together and chalk out a comprehensive business strategy for their mutual benefits. Keeping in view the current low level of trade between the UK and Pakistan there is a need for more focused efforts for expanding economic cooperation.

Muzaffar Ali invited the Pakistanis living in the UK to make investment in the fields of information technology, telecommunications, infrastructure development, education, and food preservation technologies.

The LCCI Senior Vice President Tahir Javaid Malik, said that the visit would prove beneficial for the both the sides. He said that there are a lot of opportunities waiting for the potential investors particularly in the field of textiles and leather. He said that the increase in total foreign private investment is enough to prove that Pakistan has a lot to offer and the foreign investors should take advantage of the situation.

 

[Neo]

Local auto sales down 46 percent in FY09​

KARACHI: As the macroeconomic indicators are getting better and the economy is on the path of recovery the fiscal year 2009-10 may witness better for the wavering auto industry that has been suffering from sagging conditions since last two years, industry officials told Daily Times.

Continued decline in the steel prices in international market and the expected decline in the interest rate would help manufacturers to reduce the prices, they added.

Car sales during first 9MFY09 has dropped by 49 percent year-on-year (YoY), as it stood at 61,185 units as compared to 120,246 units in the same period of the last year, with Pak Suzuki and Dewan Motor among the major losers as both witness sales decline by 52 percent and 76 percent, respectively, figures released by the Pakistan Automotive Manufacturers Association (PAMA) show.

However, cumulative auto sales (Cars + LCVs) recorded depressing numbers for 9MFY09 as they stood at 73,668 units depicting a decline of 46 percent YoY.

Auto sales were up 15 percent MoM in March 2009 primarly at the back of low base effect from February 2009 (only 23 working days). Honda Atlas and Pak Suzuki were amongst the major gainers as their sales increased by 36 percnet and 21 perecnt, respectively. Moreover, Dewan Motor also showed some improvement with sales up 26 percent MoM. However, Indus Motor failed to post positive growth as their sales declined by 2 percent.

After an impressive start in January-09 where MoM sales were up by 95 percent, February-09 auto sales slid by 18 percent MoM to 6200 units, but now in March 2009 the car sales have increased by 14 percent to stand at 6,525 units.

"Political and economic instability, frequent increase in car prices by manufacturers and high rates of auto financing remained the main sources for this decline," Atif Zafar, analyst at Jahangir Sinddiqui Research told Daily Times.

He said that the next fiscal year could be a better one for the auto industry as besides, positive macroeconomic indicators, government is also going to check the unjustified increase rates by the manufacturers.

In 9MFY09, Indus Motor captured significant market share at the expense of Pak Suzuki largely on account of their succesful launch of new Corolla model during the period. Indus Motor's market share increased to 31 percent from 25 percent in June 2008 while Pak Suzuki's market share fell to 54 percent from 61 percent. Similar to Indus Motor, launch of new Honda City helped Honda Atlas Car substantally increase its market share to 12 percent from 8 percent earlier.

Sales of automobiles have been falling for more eighteen months now owing mainly to the increased rates of interest charged on loans. Besides, the 25 percent high inflation has pushed many potential buyers away.

Automobile manufacturing had boomed when interest rates were low thanks to the increased liquidity available with Pakistani banks after the 9/11 attacks. Banks and leasing companies were liberal in giving loans to individuals. Now, as the numbers of defaults are rising because of increased interest rates, they have tightened their policies. Many banks have even stopped auto financing. There has been hardly any advertisement for car loans on televisions and newspapers for sometime.

 

[Neo]

Govt cuts federal component of PSDP to Rs 219bn from Rs 337bn​

ISLAMABAD: Keeping in view the financial constraints, the government has cut Federal component of Public Sector Development Programme (PSDP) 2008-09 from Rs 337 billion to Rs 219 billion, sources told Daily Times here on Monday.

The net cut in PSDP 2008-09 was Rs 118 billion, which was Rs 18 billion higher than the announced cut of Rs 100 billion at a time when the Prime Minister visited Planning Commission on February 13. The sources claimed that the financial constraints further compelled the government to cut the PSDP. The sources further said that allocations for all ministries and divisions would also be reduced accordingly. The government allocated Rs 62.420 billion for Water and Power Division (Water Sector) in the annual budget 2008-09. After the cut in PSDP, the allocation for water and power sector reduced to Rs 31.210 billion. The allocation for Finance Division is reduced to Rs 6.7 billion from earlier allocation Rs 16.752 billion.

The budget allocation in the PSDP for Defence Division was Rs 1.819 billion, which after cut reduced to Rs 802 million. The reduced allocation for Information and roadcasting Division was Rs 406 million from earlier budget allocation Rs 1.038 billion.

The development budget for ministry of production and industry was Rs 10.458 billion, which after cut is reduced to Rs 2.529 billion, the official maintained. The revised allocation for PSDP 2008-09 showed reduced allocation Rs 1.5 billion for Law, Justice and Human Rights Division from earlier allocation of Rs 2.381 billion in the annual budget 2008-09. The allocation for Communication Division (including NHA) reduced to Rs 19.032 billion from earlier allocation Rs 36.821 billion.

The revised allocation for ministry of Food, Agriculture and Livestock was Rs 14.407 billion from earlier annual budget allocation Rs 20.515 billion, the official maintained.

Revised allocations for other ministers are: Pakistan Atomic Energy Commission to Rs 15 billion from earlier Rs 15.330 billion, Ports and Shipping to Rs 140 million from earlier allocation Rs 372 million, Railway Division to Rs 6.560 billion from initial budget allocation Rs 11.280 billion, Higher Education Commission to Rs 12.6 billion from earlier allocation of Rs 18 billion.

The change allocations for more ministries/divisions are: Health Division to Rs 13.990 billion from earlier allocation to Rs 19.010 billion, Information Technology and telecommunication Division to Rs 800 million from earlier allocation of Rs 1.976 billion, the revised allocation for Science and Technological Research Division Rs 1.510 billion from initial allocation of Rs 3.015 billion, Petroleum and Natural Resources Division to Rs 201.2 million from initial allocation of Rs 850.4 million.

The revised allocation for Education Division was Rs 4.162 billion from earlier Rs 6.269 billion, Population Welfare Division to Rs 3 billion from earlier allocation Rs 4.315 billion, Women Development division to Rs 113 million from original budget allocation Rs 334.6 million, revised allocation for Social Welfare and Special Education was Rs 354 million from initial allocation of Rs 509.5 million, Environment Division to Rs 1.141 billion from earlier allocation Rs 2.252 billion, Cultural Division to Rs 186.5 million from Rs 413.2 million, Sports Division to Rs 140 million from Rs 350.4 million, Interior Division to Rs 5.359 billion from Rs 6.942 billion.

Other reduced allocations were: SUPARCO to Rs 1.493 billion from earlier Rs 3.120 billion, Cabinet Division to Rs 572 million from earlier allocation Rs 2.879.5 billion, Housing and Works Division to Rs 2.837 billion from earlier allocation Rs 4.070 billion, Narcotics Control division to Rs 384 million from original allocation Rs 768 million, Revenue Division to Rs 1.546 billion from earlier allocation Rs 2.370 billion. Similarly the revised allocation for other ministries/divisions finalized, the official claimed.

For the last several months the officials of Planning Commission had initiated rationalization process of development projects. The official claimed that all these projects would not be scraped from the PSDP and some would be transferred to the Infrastructure Project Development Facility (IPDF) for execution with the private sector investment.

 

[Neo]

Pakistan may get close to $4bn aid in Donors’ Conference​

ISLAMABAD: The upcoming Tokyo Donors’ Conference might pledge $4 billion to Pakistan over the next two years, Japan’s Special Representative for Assistance to Pakistan and Afghanistan Motohide Yoshikawa said on Monday.

Talking to reporters at the Japanese embassy, he said Tokyo had been advocating for assistance to Pakistan and had raised the issue at the G-20 group meeting. He said Pakistan’s stability and prosperity was in the interest of the world.

The special representative said that the international community would demand broad political support in the fight against terrorism and a plan of action for economic reforms and eradication of poverty.

He said more than 30 countries and organisations would participate in the conference.

Yoshikawa said a bilateral meeting would be held during President Asif Zardari’s visit to Japan and during the meeting the Japanese prime minister would announce assistance to Pakistan in the shape of a soft loan.

Earlier, Yoshikawa called on President Zardari and discussed the upcoming meeting of the Friends of Democratic Pakistan forum due in Tokyo on April 17, as well as the regional situation, bilateral ties and mutual cooperation.

Foreign Minister Shah Mehmood Qureshi, Information Minister Qamar Zaman Kaira, Interior Adviser Rehman Malik and Secretary General to President Salman Farooqui attended the meeting.

Japan’s Ambassador to Pakistan Chichiro Atsumi was also present.

Zardari said he hoped the international community would support Pakistan in the upcoming Friends of Pakistan meeting.

 

[Neo]

Pakistan seen getting close to $4 billion aid target​

ISLAMABAD (April 14 2009): Japan on Monday expressed hope that Pakistan would get aid pledges close to $4 billion for socio-economic needs from this weeks donors conference in Tokyo, said Motohide, Japans Special Representative for Assistance to Pakistan and Afghanistan, here on Monday.

"Japan is close to feeling confident that pledges will be close to four billion dollars, which is being expected by Islamabad," he said at media briefing after he met President Asif Ali Zardari. Two separate meetings on Pakistan are to be held in Tokyo on Friday, April 17: first with Friends of Democratic Pakistan (FoDP) in the morning, and second the aid donors conference in the afternoon. Yoshikawa said that the exact amount could not be told because most of the pledges would come bilaterally between Pakistan and the concerned donor country or agency.

He did not say how much Japan would give, but the Nikkei business daily reported on Saturday that Japan was finalising plans to provide Pakistan with up to $1 billion over two years. Japan, the diplomat said, has urged the governments and international donors to make generous contributions in aid to Pakistan.

He said that major demands from Pakistan were to see that Pakistan remains committed in fight against terrorism and extremism and stick to the economic reforms. Apart from this, the international community also wants to remain within the budgetary framework and alleviate poverty.

The FoDP meeting will raise the level of information about Pakistan problems. There will be political commitment from the international community not to leave Pakistan alone, he added. He said that Pakistans tribal areas had become real trouble. "The militancy from these areas is becoming threat to Pakistan itself," he said.

About the drone attacks, he said that international law and Geneva convention must be followed. At the same time, he added, he had no authority to speak on drone attacks. He also refrained from giving any comment regarding Pakistan-India tension.

Earlier Yoshikawa, held a meeting with President Zardari. Zardari and expressed hope that at Friends of Pakistans meeting, the international community would come up with full support to help the country fight the ongoing war on terror and extremism. They also discussed bilateral relations and the level of co-operation between the two friendly countries.

The meeting was attended among others by Foreign Minister Shah Mehmood Qureshi, Information Minister Qamer Zaman Kaira, Advisor to PM on Interior Rehman Malik, Secretary General to President Salman Faruqui and Japans Ambassador to Pakistan Chichiro Atsumi.

 

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War on terror: economy suffered $35 billion loss so far, says Tarin​

ISLAMABAD (April 14 2009): Advisor to Prime Minister on Finance Shaukat Tarin on Monday said Pakistan would get $4 billion from donors in the upcoming Tokyo meeting in April for poverty reduction and bringing about improvement in health and education sectors.

"We will collect $4 billion in donors meeting for poverty, health and education," said the advisor here on Monday briefing media about plan he would present before Friends of Pakistan in Tokyo to convince them to help Pakistan which suffered great damage on economic and security fronts in war on terror.

"We have not been able to focus on social sector because of financial constraints owing to increased spending on security," said the advisor along with Information Minister Qamar Zaman Kaira who said anything compromising the national interest would not be accepted.

He said that two back-to-back meetings of Friends of Pakistan and donors would be held on April 17 with pledges to come by the post-lunch meeting of donors. A briefing would be given to the FoP in the pre-lunch session wherein they would be apprised that Pakistan is faced with growing threat of terrorism. This growing menace was the consequence of Afghanistan and Pakistan support to global war on terror after 9/11 resulted in spread across Pakistan destroying its economy and causing massive loss of lives.

Tarin said damage to Pakistan economy for being partners in war on terror was $8 billion alone in 2008. So far he said the country has suffered $35 billion brunt to its economy but terrorism threat was increasing and due to this menace, the minister said, no investors was coming to Pakistan because of fear, a price Pakistan has been paying for being ally in war on terror. Because of growing terrorism threats, the advisor said even the local investors are closing down their units. The number of industrial units has come down from 2200 to just 590 because investors are unwilling to invest in this unsecure environment.

Tarin said in this background meeting of FoP was scheduled and Pakistan would share its problems with the member countries and apprise them that it could not pay attention to social sector because it had to pool all resources towards security. Pakistan needs $4 billion for two years to streamline social sector, he added.

He said that friend countries are also expected to help 0.3 million people who were internally displaced because of ongoing global war. Tarin said some countries in the forum view Pakistan having no economic plan and he would be briefing them about the government 9-point agenda of economic turnaround. They would be apprised in detail about the salient feature of the plan that envisages safety nets on top agenda to bring people out of poverty.

He said he would also be sharing with them the household survey in the pipeline to determine the income of each and every household to bring the deserving families in the safety net. On the basis of this determination, the families would be issued Benazir Income Support Cards (BISP), provided health insurance of Rs 20000 and its members would be given technical training to make the family stand on its own feet.

Also, they would be sharing the plan to improve productivity of agriculture and manufacturing sectors because both of them cater to the maximum in the country. They would be apprised about the integrated energy plan to meet the future needs of the country. The issues of education, health, infrastructure and capital market would be other sector to be discussed with the Friends of Pakistan during the meeting in Tokyo.

The advisor said that 9-point economic plan would be shared with the FoP as well as security and setting up a trust fund for development of NWFP and Balochistan. There would be no pledging in the FoP session prior to lunch and only briefing would be given on the Pakistan plan for economic improvement.

He said Pakistan received massive assistance three times in the past but this was never used to remove the structural problem. Kaira said that Pakistan would not compromise on national interests for aid. We want the Friends to help Pakistan in moving towards transparency, he added.

 

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Biggest Pak industrial output dip in 2 decades​

ISLAMABAD: Pakistan’s large-scale industrial production has dropped 5.71 percent – the biggest in over two decades – in the first eight months of the current fiscal year, owing to a host of domestic and global factors.

The quantum index numbers of the Large Scale Manufacturing (LSM) industries compiled by the Federal Bureau of Statistics suggest that production dropped 5.71 percent in eight months and 7.91 percent in February 2009 compared with the same month last year.

This suggests that loadshedding, political and economic uncertainty and perhaps a global recession have started adversely affecting Pakistan’s industrial sector. Adding fuel to the fire is the high interest rate environment and apparently uncontrollable inflation.

This is likely to signal a further slow-down in economic activities, an increase in joblessness and poverty and negligible gross domestic product (GDP) growth – perhaps even lower than 2.5 percent this year.

The production of petroleum products dipped 10.77 percent from July 2008 to February 2009 when compared with the same period last year. The production of petroleum products declined 8.40 percent in February 2009 over the same month last year.

Large-scale manufacturing recorded by the federal ministry of industries, comprising 25 industries, fell 4.61 percent in February and 5.71 percent in eight months.

Likewise, provincially big industry production went down 13.46 percent in February and 5.30 percent in eight months of the current financial year.

Out of 90 large-scale industries, the production of 60 items dropped while others remained static or improved. In the petroleum sector, diesel production fell by 31.36 percent. This suggests that not only the transport sector was performing below par but that the agriculture sector was also under pressure.

The production of trucks, buses, jeeps and cars declined 35 percent, 51 percent and 48 percent, respectively, in the period under review.

This means that the automobile sector produced just 367 buses, 1,857 trucks and 57,000 jeeps/cars in the first eight months of the current financial year. On the positive side, tractor production increased 8.69 percent in eight months. Also, Pakistan Steel Mills’ coke production increased 55 percent.

.:: SAMAA - Biggest Pak industrial output dip in 2 decades

 

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KSE-100 Index slips 25 points on profit taking​

KARACHI: Profit taking continued on the second day at the Karachi Stock Exchange (KSE) as 100-Index slipped 25.77 points to close at 7,807.08, dealers said.

The turnover volume also soared to 282.605 million shares as prices of 221 sustained losses and 107 scrips recorded gains and 14remained unchanged.

A dealer at a leading brokerage house said that market witnessed a volatile day on heavy selling. The market was bullish in the morning, but fell on heavy selling as Index went down as low as 7600level.

However, the market recovered on some buying before the close of day's session, he added.

The market capitalization was eroded by about Rs 10.8 billion toRs 2.334 trillion. Jahangir Siddiqui was the volume leader on the second consecutive day with a turnover of 25.497 million shares followed by Fauji Fertilizer 19.257 million shares, D G Khan Cement 18.003 million shares, OGDC 14.884 million shares and Bank Al-Falah 14.828 million shares.

Bank Al-Falah closed at 13.11, NBP 106.99, PTCL 19.76, Lucky Cement 58.17, OGDC 80.26, Nishat Mills 39.86, D G Khan Cement 29.87and Jahangir Siddiqui Co 43.24.

Wyeth Pak recorded the highest gain of Rs 32 to close at 1449.50 followed by Attock Petroleum which went up by Rs 10.31 to 307.28 while Colgate Palm dipped by Rs 15 to 292 and Pak Oilfields went down by Rs8.61 to 169.11.

KSE-100 Index slips 25 points on profit taking - GEO.tv

 

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Three more KPT berths go out of action​

KARACHI: The port authorities on Monday suspended discharge of coal on three KPT berths at the East Wharf owing to damage suffered by the berths due to movement of heavy cranes not designed for berths.

According to official sources, the coal discharge was stopped after the deputy conservator (DC) was directed by the Planning and Development Department to stop using berth Nos. 1, 2 and 3 for unloading of coal.

The KPT had been using these berths for the last three years for unloading coal for which heavy cranes were used. Therefore, stresses created by the load and movement of these cranes caused damage to these conventional berths, which were not designed to be used for such heavy operations, official sources disclosed.

The port authorities have now allocated berth 4 and 5 at East Wharf for coal discharge, which is widely used by cement industry, source said.

The incident has deprived the Karachi Port of 11 berths because eight berths (10 to 17) had collapsed two years ago during heavy rains.

The debris of some of the collapsed berths is yet to be removed, while others are under construction, sources said.

There are in all 27 berths with three oil piers at the port. However, after three more berths went out of operation, about one third of port’s cargo handling capacity will remain unutilised for some time.

Port and shipping experts told Dawn that instances indicated how the KPT was taking care of its assets and is also a manifest of sheer negligence and lack of maintenance by the P&D department.

A KPT insider told Dawn that the damage was so severe that the RCC filling would have to be made with steel mesh to reinforce the damaged surface of the berths.

However, due to shortage of berths the port, authorities are temporarily allowing loading of cement at berth No 1, 2 and 3, which would be only done by ship cranes.

Similarly, fertiliser is also reported to be handled in the same way to further restrict damage to these berths.

Experts further said that port authorities are planning to spend billions of dollars on a mega deep sea port, which is yet to be technically proven through hydraulic lab tests, but are not taking care of existing port assets.

They further said that global economic slowdown has forced many giants in port and shipping industry to shelve or freeze their new projects as well as expansion plans but KPT is moving ahead to develop Pakistan Deep Sea Container Terminal at Keamari Groyne.

DAWN.COM | Business | Three more KPT berths go out of action

 

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Tokyo donors’ meeting​

It is argued by some that the physical battle against militancy has been a drain on Pakistan’s resources. Seen in this light, the prime minister’s adviser on finance is stretching a point when he says that health and education suffered over the last few years because funds had to be diverted towards security needs.

The fact of the matter is that healthcare and education have been routinely neglected by successive governments, irrespective of their ideology or the geopolitical needs of the hour. The word from Islamabad is that Pakistan will be seeking $4bn at an international donors’ meeting in Tokyo on April 17. Japan alone, it is said, may commit to an outlay in the region of $1bn. On paper at least, these funds are to be spent on health, education and poverty alleviation — areas that are clearly interconnected — over the next two years.

Access to healthcare and schooling are of course basic human rights that must be respected across the globe. On one level there is the unacceptable human misery associated with disease, illiteracy and poverty. There are tens of millions of people in this country who spend a lifetime in conditions that others from more privileged backgrounds would not bear for a day.

On a wider level, no developing country can hope to prosper until it ensures that the majority of its citizenry and workforce is healthy and educated. In the context of Pakistan, there is another pressing reason why the social sectors cannot be neglected any longer. Poverty, hunger and illiteracy are preyed upon by the Taliban who draw most of their recruits from among the ranks of the marginalised and ideologically susceptible. An educated populace with prospects is less likely to be tempted by the call of extremist ideologies.

The final numbers are not known yet. Nor is it clear how the funds pledged in Tokyo will be utilised. Will the money go directly to the government or will it be channelled through intermediary organisations and private-sector implementing authorities? The latter option may not be acceptable to Islamabad.

As such, to ensure transparency in execution — never the forte of Pakistani officialdom — we may profit from a combination of non-governmental and public partnerships in which each learns from each and helps keep an eye on the other. Any money received for healthcare and education must be wisely invested and with honesty of purpose. We can make or break our future. The latter should not be an option.

DAWN.COM | Business | Tokyo donors? meeting

 

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Japan agrees to provide aid for KCR, two other projects​

ISLAMABAD (April 15 2009): Japan has agreed to provide assistance for three projects, including Karachi Circular Railway project (KCR), sixth secondary transmission and grids project of Gujranwala Electric Power Company (Gepco) and New Khanki Barrage. Japan may make formal announcement in the Friends of Democratic Pakistan (FoDP) meeting scheduled in Tokyo on April 17.

The sources revealed to the Business Recorder on Tuesday that the government had requested Japan to provide assistance for 20 projects that also included Neelum Jhelum hydropower project and Bhasha dam, but Japan agreed to extend support for three projects. The assistance will be provided through Japan International Co-operation Agency (Jica).

The consultant Scott Wilson Railways, UK, appointed by Pakistan Railways revalidated the feasibility study report on revival of KCR. The draft report of the consultant advised to conduct detailed feasibility study of the project. The Jica has already undertaken the supplementary studies, including demand traffic forecast model and environment impact assessment (EIA) studies.

The loan will be STEP loan repayable in 40 years, including 10 years grace period. The length of revival of KCR project is 49.1 kilometres and the cost is 872.316 million dollars. Under the STEP loan, Pakistan would ensure import of 70 percent material for the project and 30 percent locally produced material to be used to complete the project, sources said.

Japan has also agreed to provide assistance for project "sixth secondary transmission and grids project, to be undertaken by the Gepco, costing Rs 5173.331 million with foreign component of Rs 1200.285 million. Under the project, the transmission lines of the Gepco will be improved and its network will be extended. The Punjab Irrigation Department has planned the construction of a new barrage at Khanki and PC-1 of the project has been prepared. The Jica is expected to provide assistance for the project.

Pakistan is also seeking assistance from Islamic Development Bank (IDB) to provide financing for Diamer Bhasha dam and Neelum Jhelum hydropower project. The IDB has initially indicated to provide 30 million dollars for Bhasha dam in 2011.

Pakistan requires 11.4 billion dollars for Diamer Bhasha dam against earlier estimates of 6.5 billion dollars in 2005. The government will establish a consortium of all major multilateral and bilateral donors, led by the Asian Development Bank (ADB), before the next budget for funding the construction of Diamer-Basha Dam. The IDB may also become part of the upcoming consortium for investing into Basha Dam.

Business Recorder [Pakistan's First Financial Daily]

 

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US to make Pakistan pledge but backs strings​

WASHINGTON (April 15 2009): The United States said Tuesday it planned an aid pledge to Pakistan at this week's conference in Tokyo but rejected Islamabad's pleas that its assistance come without conditions. "We'll be making a pledge," State Department spokesman Robert Wood told reporters. He declined to give details ahead of Friday's conference in the Japanese capital.

US President Barack Obama, vowing a new focus on rooting out extremism from Pakistan, has already thrown his support behind a bill in Congress to triple non-military assistance to Pakistan to 1.5 billion dollars a year. But Wood said the United States would go ahead and establish "benchmarks" for progress:

"We want to see certain standards and goals met," he said. "I think you would expect when the US taxpayer is providing money, assistance to a country, that we want to make sure that we're not only getting our money's worth but that certain things that we care about we want to see that they be dealt with," he said.

He did not specify conditions, but Obama last month said Pakistan should take stronger action in rooting out al Qaeda extremists, who are believed to be holed up in areas bordering Afghanistan. Obama, in backing the aid package, called it a "down payment" for future security despite strained US financial resources due to the economic crisis. The World Bank said Monday that Pakistan could get pledges of between four and six billion dollars at the Tokyo donors conference, to be attended by Pakistani President Asif Ali Zardari.

Business Recorder [Pakistan's First Financial Daily]

 

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Fehmida for enhanced Sino-Pak economic co-operation​

ISLAMABAD (April 15 2009): Speaker National Assembly Dr Fehmida Mirza Tuesday said the relations between Pakistan and China were exemplary and would be further strengthened through enhanced economic co-operation. She said this while talking to a six-member Chinese delegation of Shanghai Academy of Social Science (SASS) headed by its Vice President Huang Renwei, who called on the Speaker in the Parliament House Tuesday.

The Speaker said China was a great emerging economic power in the world and there was lot for Pakistan as well as countries in the region to benefit from its experiences. She said Pakistan and China have commonality of views on all regional and international issues and there was a need to further strengthen these relations through frequent parliamentary interaction.

The Speaker said that the variety of economic projects in Pakistan were infusing strength and proving a source of great economic activity. The Speaker said that security and prosperity were the common objectives of the two countries for which effort needed to be expedited.

Fehmida said that the country at the moment was facing a number of challenges, which would overcome soon with the support of people and friendly countries like China. The Head of the Chinese delegation Huang Renwei said that China understands well the strategic importance of Pakistan and it believes that economic development in the area was essential for security of the region. He said that China believed that a stable Pakistan was necessary for regional prosperity and assured full support in this regard.

Business Recorder [Pakistan's First Financial Daily]

 

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Government to promote use of CETPs in Punjab Industrial Estates​

FAISALABAD (April 15 2009): Industries based in Punjab are discharging toxic and persistent waste into fertile croplands, rivers, and groundwater sources due non-availability of wastewater treatment facilities. It is obvious that wastewater treatment facilities are too expensive for the most individual units to afford.

Keeping in view this difficulty, the Government has tried to promote the use of Combined Effluent Treatment Plant (CETPs) in Punjab Industrial Estates, said ADB update study. According to report, the two CETPs set up in Korangi and Kasur were subjected to long delays during implementation, and continue to face operational problems owing to unclear institutional arrangements and regulations.

In 2005, the provincial government established the Punjab Industrial Estates Development and Management Company, which has a development fund of Rs 3 billion and oversees seven CETPs across the province. This is an opportunity for ADB to introduce effective, competitive, efficient, and sustainable arrangements for the implementation and management of CETPs. The project investment cost is estimated at 77 million dollar, including taxes and duties worth 3.5 million dollar. The total cost includes physical and price contingencies, as well as interest and other charges during implementation, ADB report mentioned.

Commenting over the "Continuous Water Supply (CWS) in Zones of Karachi and Sindh's Secondary Cities," ADB report said that almost 100 percent of the samples of piped water in Karachi are contaminated at point of entry/use by bacteria of fecal origin. While the provision of an intermittent water supply is standard practice among water utilities, it is less than satisfactory from a health point of view. Moreover, the uncertainty of supply has led the households installing suction pumps that worsen the contamination.

Under the Country Partnership Strategy (CPS), focal area 3.1 calls for enhancing competitiveness of cities. ADB is already engaged in turning around the water supply and sanitation, and SCIIP is forthcoming to continue the engagement.

However, the outcome performance indicator in the design and monitoring framework for SCIIP is to enhance the duration of intermittent water supply from 2 hours to 12 hours daily. This is another opportunity for ADB to support the conversion from an intermittent to a CWS, zone by zone, in Sindh's secondary cities.

Commenting over the "Integrated Solid Waste Management Systems for Upper Sindh Secondary Cities," ADB report mentioned that most of the municipal solid waste generated in Sindh Secondary Cities is open dumped within or just outside the city boundaries. The waste is not spread, compacted or covered. Municipal solid waste should be segregated at source. There should be primary collection from the doorstep, and the use of streets for open dumping of wastes should be discouraged. Waste should be transported in covered vehicles, and degradable materials should be processed for composting or power generation. SCIIP envisages sanitary landfill sites, but a sanitary landfill requires a population of around one million people for economical operation. Under this ongoing project ADB can support for a proper regional sanitary landfill facility for Upper Sindh secondary cities for final disposal of non-bio-degradables.

According to ADB study, Capacity Building for Environmental Management System has become a crucial part of establishing and maintaining industry and the country competitiveness. Pakistan lags behind in achieving EMS certification, such as ISO 14001, and this has affected the export competitiveness of its industry sector.

Business Recorder [Pakistan's First Financial Daily]