Pakistan Economy - News & Updates - Archive

[aziz raza]

Can anybody give comments on Lowari Tunnel .

 

[aziz raza]

Diamer-Basha dam to be completed in time: minister ​

ISLAMABAD (June 01, 2009): Minister for Water and Power, Raja Pervez Ashraf on Monday said that all resources will be utilized for timely completion of Diamer-Basha dam project to generate clean and cheaper electricity in the country.

He said this while presiding over a meeting to review the progress of Diamer-Basha dam project. Minister for Kashmir Affairs and Northern Areas and Information and Broadcasting, Qamar Zaman Kaira and Minister for Parliamentary Affairs Babar Awan also participated in the meeting.

Ashraf said that the generation of 4,500 MW cheap hydel power from Diamer-Basha dam will reduce the dependence on thermal power resulting saving of huge foreign exchange and make available 6.4 MAF of water for irrigation.

He said that the project will create massive infrastructure and job opportunities leading to the overall socio-economic uplift of the area.

The Minister directed the Wapda authorities to follow the schedule to ensure timely completion of such a project of national importance.

Qamar Zaman Kaira said that the government is giving priority to all such mega projects and every efforts is being made to make funds available for this important and national project.

He asked the Wapda to early undertake the resettlement plan for the affectees of the dam in Northern Areas and NWFP.

Earlier, the Chairman Wapda briefed the meeting on the progress of the project and said that the ECNEC had approved the project for land acquisition and resettlement of the dam at a cost of about Rs. 60 billion.

He said that the Diamer-Basha dam will be the highest roller compacted concrete dam in the world having height of 272 meters. He added 323 KM of Karakoram Highway from Havelian to dam is to be upgraded by National Highway Authority (NHA) for transportation of heavy machinery and equipment.

He said that design and feasibility study has been completed while the tenders have been invited for construction of the project. He informed the participants that the project is on schedule and will be completed within the prescribed time frame in 2016.

He said that a very positive response from international financing institutions have been received for the project financing.

We need Dams and Basha can Contribute a lot

 

[Neo]

Provinces to get Rs590bn under Federal Divisible Pool​

No plan to monetise perks of public-sector employees​

Tuesday, June 02, 2009

ISLAMABAD: The government on Monday informed the provinces that it would transfer financial resources up to Rs590 billion to them under the Federal Divisible Pool (FDP) in the next budget 2009-10, it is learnt.

A crucial meeting was held between the centre and four provinces here at Finance Ministry on Monday in which the provinces were informed that their share could go up in the range of Rs590 billion in the next budget.

The federating units asked the government to provide additional funds outside the Federal Divisible Pool (FDP) in order to help them for preparing the next budget.

During the meeting, it was also told that the government holds no plan to monetize perks and privileges of 3.5 million employees of the public sector in the next budget 2009-10 while only adhoc relief in the range of 10 to 20 percent will be granted to ease their financial woes, it is learnt.

Ministry of Finance is working on three scenario by proposing the incumbent regime to increase salaries and pension in the range of 10-15 or 20 per cent. The Finance Ministry will prepare a summary in this regard which will be tabled before the federal cabinet to apprise the federal minister about the cost involved for approval each of the three options. The government will announce the approved range of salary and pension increment in the budget on June 13.

With no plan to monetize the perks of public sector employees the luxuries such as provision of housing as well as cars for top bureaucrats at the cost of public expense will continue for another fiscal year 2009-10.

“The pay scales will not be revised and only adhoc relief will be provided to the employees in order to help mitigate the sky rocketing inflationary pressures,” a high-level official in Finance Ministry confided to The News here on Monday.

The government is also considering linking the proposed hike in salaries and pension of public sector employees with exorbitant inflationary pressure, which was projected to remain in the range of 20 per cent for the outgoing fiscal year.

“So the employees’ salaries should be increased at least 20 per cent,” said the sources but finance ministry high-ups stated that it depends upon the fiscal space how much the government could absorb burden owing to rising bill of salaries and pensioners.

When contacted, a high-level official in Finance Ministry on Monday, said that the government has decided to take the Pay and Pension Commission led by Dr Ishrat Hussain into confidence before finalizing the proposals to increase the salaries and pension in the next budget.

The last Pay and Pension Committee led by Moeen Afzal had talked about monetizing the perks and privileges for public sector employees in its detailed report but they did not recommend the government to move ahead without wasting any time.

A member of the Pay and Pension Commission told this scribe on Monday that there was vested interest involved in it baring the government to move ahead in a serious manner. If the government decides to monetize the perks and privileges it will not be appropriate to provide Rs10,000 to Rs20,000 because no one can get a rented house in this range in major cities, he added.

“There are no chances to start monetization of housing from the next budget,” said the sources. Provinces had already refused to monetize housing facility for over 2 million employees in the next budget for 2009-10 owing to severe financial constraints as they cannot afford a budgetary hit of Rs120 billion at their own.

The federal government has estimated that it requires Rs80 billion for monetization of housing facility for 1.5 million public sector employees in one go.The monetization means that the public sector servants will be deprived from their existing official accommodations and cash amount will be provided in order to enable them to set their priorities keeping in view the requirements.

There are about 3.5 million public sector employees both at the federal and provincial governments. A major chunk of employees belong to the provinces, hovering around over 2 million in the fold of the public sector. As food inflation is on higher side, the salaried and pensioners are the major victims of price hike, and they are eyeing on the next budget for another raise in their salaries and pensions.

 

[Neo]

Load-shedding reduces investment by 60pc​

Tuesday, June 02, 2009

Ten to twelve hours long load-shedding in upper Sindh has affected daily business and investment has reduced by 60 per cent.

Load-shedding in Upper Sindh has compelled local investors to stop investment as they are incurring losses worth millions of rupees.Load-shedding has also affected agricultural growth and there is a possibility of scarcity of sugar.

People of upper Sindh are already facing poverty and now they are being deprived of business activities, as even after the passage of one year, people’s confidence in the present government has not been restored.

Local businessmen have invested million of rupees in the agricultural sector, flourmills, ice factories and ginning factories. Chaudhry Sajid Hussain, Chairman Anjuman-e-Tajiran Khairpur, said that the traders of Khairpur are not taking any more risks of investing in the market as the government has failed to provide them power. He said that there is a possibility that traders may face bankruptcy, as they had got loans from different banks for establishing their business.

The power outage has created tension and stress among the business community, because of not getting the required results from their invested money. Agriculturalist Nazir Ahmed Langhah says they use tube wells for irrigating but 15 to 16 hours long load shedding in rural areas of the upper Sindh has affected the agricultural output.

He informed that there is a possibility of shortage of the sugar as sugar cane crop needs plenty of water but there is no water for irrigating which affects the growth of the crop. He said that there is already a shortage of wheat and the people of upper Sindh depend on agriculture for their livelihood, but this is near collapse due to load shedding.

He said that framers had installed tube wells as a substitute for the shortage of irrigation water, but the government instead of giving subsidy enhanced the power rates, which is shocking for growers.

Ahmed Hussain Ujjan sharing his views says that people are deprived of cold water as many ice factories have closed down due to losses caused by unabated power outages. He said that load shedding in the past was not an issue but now it is a critical and chronic issue, which is responsible for the destruction of agricultural growth here in upper Sindh.

Dr. Aftab Lashari renowned child specialist said that outage of power put children as well as adults under stress. He said that load shedding is affecting people as businessmen and traders have complaints of the tension, and stress.

Zahid Hussain said that there are hundreds of small flourmills in upper Sindh but due to load shedding there is a shortage of flour.

He appealed to the government to take notice of the public, industrial and businessmen community and restored their confidence so that the business activities can be started in upper Sindh.

He said that the people of Upper Sindh are unable to purchase generators as prices of these appliances have increased two folds due to load shedding.

 

[Neo]

Minister reviews progress of Diamer-Basha dam project​

ISLAMABAD: To generate clean and cheaper electricity for future requirements all resources would be utilised for timely completion of the Diamer-Basha dam project, Federal Minister for Water and Power, Raja Pervez Ashraf said on Monday.

The minister expressed these views while presiding over a meeting to review the progress of Diamer-Basha dam project. Federal Minister for Kashmir Affairs and Northern Areas and Information, Qamar Zaman Kaira and Babar Awan was also present on the occasion.

Addressing the meeting, Raja Pervez Ashraf said the generation of 4500MW cheap hydel power from Diamer-Basha dam would reduce the dependence on thermal power resulting saving of huge foreign exchange and would make available 6.4 million acre feet of water for irrigation. He said the project would create job opportunities leading to the overall socio-economic uplift of the area. The minister directed the Wapda authorities to follow the schedule to ensure timely completion of the project.

Minister for Kashmir Affairs, Qamar Zaman Kaira said that the government was giving top priority to all such mega projects and every effort is being made to make funds available for this important and national project. He asked the Wapda to undertake resettlement plan for the affectees of the dam in Northern Areas and NWFP.

Earlier, Chairman Wapda briefed the meeting on the progress of the project and said that the ECNEC had approved the project for land acquisition and resettlement of the dam at a cost of about Rs 60 billion. He said the dam would be the highest roller compacted concrete dam in the world having height of 272 meters.

He said design and feasibility study had been completed while the tenders had been invited for construction of the project. He also informed the participants that the project was on schedule and would be completed within the prescribed time frame in 2016. He further stated that a very positive response from international financing institutions have been received for the project financing.

Wind power: Meanwhile, a five members delegation headed by Axel Pliefke, CEO of Handel Services Consulting, Germany called on the Federal Minister for Water and Power, Raja Pervez Ashraf today and expressed their interest to invest in the wind power generation up to 500MW. The minister welcomed the German investment for investment and assured to encourage and facilitate the German investors and asked to submit detail proposal for wind power generation in Pakistan. The minister said that Pakistan had great potential of 350,000MW in wind power and the incentive based liberal policy would encourage the investment.

 

[Neo]

Proposed textile policy aims at $25 billion exports, 2.9 million jobs​

ISLAMABAD (June 02 2009): Prime Minister Yousuf Raza Gilani on Monday constituted a Cabinet committee to evaluate the proposed textile policy, envisaging specific initiatives, for achieving an export target of $25 billion and creating 2.9 million jobs over the next five years.

The new policy would lay foundation for a prospective plan spread over the next 15 years under which the country would move at the higher end of world textile map by achieving a target of textile exports between $75 billion and $100 billion.

The meeting also approved proposal regarding special initiatives aimed at enlarging women's role in the textile sector. Secretary, Textile Industry, Dr Waqar Masood, gave a presentation to the Prime Minister on salient features of the new policy. The briefing was attended by Minister for Textile Industry Mohammad Farooq; Advisor to Prime Minister on Finance Shaukat Tarin; Food Minister Nazar Mohammad Gondal; Privatisation Minister Naveed Qamar and Investment Minister Waqar Ahmad.

The new law is being framed in the wake of dwindling exports from the textile sector. The exports of textile and clothing sector declined by 9.27 percent during July-April of the current fiscal year to $7.898 billion, against $8.706 billion of corresponding period of last year.

The proposed policy would also focus more on research and development to increase supply of quality fibres and increase efficiency of downstream sector in line with domestic and international market requirements. An official statement issued after the meeting said that the Premier said that these measures would greatly help in reinvigorating this vital sector, which is the backbone of national economy.

The Prime Minister said that the government would provide all possible incentives for modernising the textile industry and making it more efficient since it is a valuable asset of the country.

He emphasised on focusing on areas and regions in the country through which optimum yield of cotton could be procured. He underscored the need for improvement in the quality and quantity of cotton to strengthen the competitiveness of the textile industry and facilitate exports of textile products.

The Premier called for integrated textile value chain which could help towards adding value to the country's agriculture potential by serving domestic needs as well as high value export demand through a well planned industrial structure, product diversification and institutional framework.

Secretary, Textile, in his presentation briefed the meeting about the salient features of the new textile policy, aimed at bolstering the sector in a big way by facilitating the sector to develop international and domestic-driven capabilities, development of state-of-the-art infrastructure facilities, comprehensive skill development framework to increase supply of efficient human resource, development of standards for international compliance, increasing productivity and improving quality. The PM was informed that the ministry of textile has formulated the textile policy after threadbare consultations with the private sector and other stakeholders.

 

[Neo]

German companies keen to invest in Pakistan​

ISLAMABAD (June 02 2009): A German delegation led by Axel Pliefke, CEO, Handel Services Consulting, Germany alongwith Mehr Muhammad Yousaf Chand, Honorary Investment Counsellor (HIC) and Tariq Mahmood visited Ministry of Investment (Board of Investment) and called on Saleem H. Mandviwalla, Minister of State & Chairman BOI on Monday. Mandviwalla welcomed the delegation, and appreciated German companies interest to invest in Pakistan. He highlighted the policy parameters of investment in Pakistan.

While stressing so he underlined the policy, which allows 100 percent foreign equity in major sectors and full repatriation of profits and dividends in all the sectors. It was further explained that the average rate of return is almost 30 percent and in some cases up to 50 percent.

Axel Pliefke expressed his keen interest for a joint venture in Pakistan's Solar, Wind and Hydel energy sectors. He said that German entrepreneurs are keen to invest in Pakistan but, due to security concerns potential investors are keeping themselves at a distance. The government should take steps to remove the negative perception about Pakistan.

Furthermore, the delegation informed that within 4-5 weeks they will be bringing the first prototype wind mill (small unit) in Punjab, which will cater to the needs of tube wells in small towns and villages. The delegation also showed interest in the establishment of 50 MW wind mills in Pakistan. The Minister of State assured to extend all possible assistance required by the German delegation. Mandviwalla thanked members of the delegation for visiting Pakistan.-PR

 

[Neo]

India casts wary eye on China's role in Pakistan​

LONDON (June 02 2009): Washington's focus on Pakistan and economic dependence on China are forcing India to reassess its own place in South Asia, reviving long-standing fears of strategic encirclement by its giant northern neighbour. Analysts say Indian suspicions about China, suppressed during the boom years by burgeoning trade ties, have been stoked by Chinese involvement in Pakistan and a sense that Beijing has replaced India as the favoured friend of the US in the region.

"There is a very strong feeling that China is India's threat number one," said Subhash Kapila at the South Asia Analysis Group, an Indian think-tank. Under former President George W. Bush, the United States forged close ties with India - in part seeing it as a counterweight to growing Chinese power - culminating in a deal effectively recognising its nuclear-armed status.

India and China also made efforts to mend relations soured by a border war in 1962, while their growing clout in the world economy earned them the nickname "Chindia". "During the Bush era, US policy was seeking to build India as a counterweight to China," Brahma Chellaney, from India's Centre for Policy Research, said at a conference in London. Long Pakistan's closest ally, China has been steadily building ties with India's other neighbours, supplying weapons to Sri Lanka and improving its relationship with Myanmar and Nepal, all stoking Indian fears of strategic encirclement.

"India has been gradually ceding space in its own backyard, especially to China," said Chellaney. China has stressed it sees no competition with India, but rather that both can benefit from rising bilateral trade as well as co-operation on issues where the two countries share similar views, including on Doha trade talks and climate change. "Neither of the two poses a threat to the other," Ma Jiali, from China Institutes of Contemporary International Relations, told the conference in London.

Until very recently, India shared that view and set aside distrust which lingered on from its defeat by China in the 1962 war. At the same time the government also played down alleged incursions along the disputed border to avoid spoiling the mood.

 

[Neo]

Fiscal deficit and Budget 2009-10​

Tuesday June 02, 2009

The budget 2009-10 is dogging after the poor, and certainly many of its pages would be dog-eared. Curbing inflation must be at the anvil and ironically speaking the anvil may be the worthy plight of the poorest! According to the first quarterly of SBP, the July-Sep 2009 revenue stands at Rs 385 billion, the expenditures at Rs. 524 billion meaning a budget deficit of Rs. 139 billion. A revised target of tax to the tune of Rs 1.879 trillion is already set for the next financial year.

Other targets remain to be as expenditure of Rs 3.064 trillion, debt servicing Rs 751 billion, defence expenditures Rs 380 billion and development expenditures at Rs. 616 billion [the difference in numbers is due to differing time slots]. If properly administered, potentially Pakistan can generate Rs 300 billion to Rs 400 billion. Further, it can generate revenues of over Rs100 bullion -150 billion if only tax exemption is revisited. In the wake of chronic fiscal deficit, it is estimated that Pakistan would need $12 billion constantly for next few years to meet its recurring revenue gap. Specifically, enhancing tax revenue is the favourite recipe of the IMF.

Fathoming the implementations and implications of IMF conditionalities has never been straightforward. The reason for that is that their stratagems fructify in years and show their true and sometimes gruesome impact after decades. The developing countries (DCs) and especially less developed countries (LDCs) have had this experience since the advent of aid-syndrome after the Second World War. The same IMF has prescribed as before to broaden tax base and raise the tax to GDP ratio. These two variables seemingly have zero correlation yet a good measure. The tax to GDP ratio currently has declined to 9.5 per cent, which during 1980s and 1990s remained at 12 and 13 per cent respectively.

Still it is lower in the region where the average is about 15 per cent. At the higher front of advanced countries like EU it is ranging between 24 to 44 per cent. However, now Pakistan has targeted it to be between 15-18 per cent to be ascertained through tax reforms in the next five years. The approval of IMF’s second tranche of $800 million out of $7.6 billion is subject to meeting Pakistan’s fiscal deficit otherwise it may be delayed. Previously, IMF’s tilt was towards monetary measures to meet macro-economic imbalances of the country. It has recently started taking the fiscal rout. Presently, the government’s central challenge is to put downwards pressure on inflation, reducing fiscal deficit and increasing tax to GDP ratio. IMF has further implied that agriculture should be declared as industry and brought within the tax bracket accordingly. However, this has its own pros and cons. Simply put, increased tax on agricultural produce will boost their prices on one hand and discourage agriculturists on the other. If coupled with subsidy may end up as zero sum.

Nevertheless, a sector contributing 22 per cent to GDP and providing 60 % employment contributes to tax revenue only by 1 per cent. But Pakistan cannot help except taking adequate measures where agriculture is taxed appropriately. The new VAT [value added tax] system is supposed to replace the existing GST. It is said to be regressive and burdening the poorer. Through this ghost traders will comfortably evade VAT, whereas the unregistered groups will be beneficiaries. This method will increase administrative cost with respect to tax collection as well.

To conclude, mammoth debt servicing (or debtor servicing) and huge defence expenditure converge to same parties. This is so since we borrow to build our defence because we have been pushed to wall of war against terrorism to which our neighbour is accomplice. The foolhardy pusher is the lender also ultimately scaring us that our nukes are unsafe. If so how impotent and oblivious we are while building our capacity of deterrence? Looks that lenders are making illogical assertions or they are impractical! If not so, the lenders are at least potentially self-destructive and will ultimately wipe out everything including themselves. There was a door, to which I found no key, There was the veil through which I might not see, Some little talk awhile of me and thee, There was——— and then no more of thee and me.

 

[white_pawn]

'Punjab budget 2009-10 will be people friendly' ​

MUHAMMAD SALEEM
LAHORE (June 03 2009): With focus on poverty alleviation and public welfare, the Punjab budget for the year 2009-10 would be 'people friendly' in which no new tax will be imposed. Sources in the PML-N led Punjab government told Business Recorder, here on Tuesday that Chief Minister, Muhammad Shahbaz Sharif has already asked the authorities concerned that in the Punjab budget 2009-10, attention must be paid to the provision of maximum relief to the masses.

The sources claimed that the PML-N leadership is determined to provide basic amenities to the citizens and has already taken a number of initiatives in education, health, agriculture and other sectors. Various public welfare steps such as provision of free medicines, 'Sasti Roti' scheme, Food Support Programme, Punjab Educational Endowment Fund, would continue.

According to the sources, 1.8 million poor families are benefiting from Food Support Programme while a programme has also been evolved for imparting vocational education to the children of such families so that they could achieve self-reliance and play an active role for the development of the country. 'Sasti Roti' scheme is continuing successfully and not only the number of enlisted Tandoors is being increased but also public-spirited persons and civil society is also being included in this welfare project.

The sources claimed that Punjab Educational Endowment Fund has been set up for the first time in the country's history for the benefit of talented students, while provision of free medicines in hospitals as well as free of charge dialysis facilities have been ensured.

Talking about the Annual Development Programme (ADP) of Punjab, the sources claimed the government wanted to initiate such development projects under next ADP, which could directly benefit the common man besides helping in poverty alleviation. The government wanted to evolve a comprehensive strategy for the provision of basic amenities to the deprived segments of the society and progress of backward and far-flung areas, the sources added.

The government will pay attention to the schemes of education, health, water supply and drainage and poverty alleviation under Annual Development Programme (ADP) so that process of development of the province could be accelerated and the problem of unemployment could be overcome, the sources said.

The sources further claimed that the government has already put in place evolved an affective system for the monitoring of development projects while third party audit system has been introduced regarding mega development projects so that proper and transparent utilisation of every penny of public money could be ensured.

 

[white_pawn]

CDA seeks Rs 28 billion budget allocation to meet expenditure​

SEHRISH WASIF
ISLAMABAD (June 03 2009): Capital Development Authority (CDA) has sought budget allocation of Rs 28 billion for 2009-10 to meet its development and non-development expenditure. Sources disclosed here on Tuesday that out of total proposed allocation, CDA has sought Rs 8 billion for recurring expenditure, while Rs 20 billion for development projects in the next financial year 2009-10.

In 2007-08 fiscal CDA had allocated 79 per cent of its budget for development projects that is Rs 20 billion and 21 per cent for non-development expenditures that is Rs 5 billion, sources revealed.

The proposed allocations have been increased from Rs 25.8 billion in current financial year to Rs 28 billion for the next financial year despite the fact that the authority is expecting to utilise only 70 per cent of current year allocation by the end of June 2009.

Sources further said that the Authority failed to utilise the major chunk of the current budget due to the lethargic and non-serious attitude of the officials. 'Even the Authority failed to start work on a number of approved projects and didn't launch any project to improve the environment of the capital during the ongoing fiscal year,' sources added.

Sharing the details sources said that in the current fiscal year, CDA's self-finance allocation was Rs 20 billion, PSDP Rs 392.114 million, revenue Rs 1.166 billion, and others Rs 3.482 billion, most of which was not utilised.

However, the officials claimed that up till now the Authority had utilised 34 per cent of self-finance, 40 per cent of revenue and 13 per cent of PSDP allocations, sources maintained.

In addition, the sources said that the most important PSDP projects included addition of third and fourth lane on Kashmir Highway from Peshawar Mor to Golra Mor at a cost Rs 50 million, improvement of HVAC system and furnishing of Aiwan-e-Sadar building Rs 19.537 million, construction of permanent offices of chairmen standing committees of the parliament Rs 50 million and purchase of land for construction of Pakistan Institute of Parliamentary Services Rs 34.472 million. Though the amount allocated for development included allocation for improving environment, up-gradation of water supply and sewerage system, roads, interchanges, underpasses and so on not much has been achieved.

Business Recorder [Pakistan's First Financial Daily]

 

[ajpirzada]

these ppl always ask for more and then end up spendin less. how does that help the economy.

 

[Neo]

NEC may approve Rs595bn PSDP ​

Wednesday, June 03, 2009

ISLAMABAD: The National Economic Council (NEC), which will meet on Thursday, is all set to approve the Public Sector Development Programme with a total outlay of Rs595 billion, including federal share of Rs395 billion and provincial share of Rs200 billion. The total size of the proposed budget includes an operational shortfall of Rs20 billion.

“A Planning Commission team, headed by its Deputy Chairman Sardar Aseff Ahmad Ali, is to brief on Wednesday President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani on the proposed PSDP for 2009-10 and will get input from the top men,” a senior official at the Planning Commission told The News.

However, the PSDP may be altered after getting the input from the President and Prime Minister during the presentation, but the size of the development budget will remain the same.

Earlier, the Annual Plan Coordination Committee (APCC) suggested a development budget of Rs600 billion with federal share of Rs400 billion and Rs200 billion for provinces. But now the federal share has been reduced by Rs5bn to Rs395bn, according to a working paper for NEC meeting.

The working paper shows that Rs25bn has been allocated for earthquake reconstruction, which will be treated outside the PSDP, meaning that the total development outlay would be Rs620bn.

The federal share of Rs395bn includes Rs262bn for federal ministries, Rs38bn for special areas (AJK, FATA, Northern Areas), Rs35bn for special programmes and Rs60bn for corporations.

According to the paper, the country will undertake two nuclear power projects called Chashma Nuclear Power Plant 3 and 4 with an investment of Rs190bn. These would have the capacity to generate 600 megawatts of nuclear power by 2016.

The allocation for the health sector has been increased by 82 per cent from Rs14bn to Rs26bn to achieve improvement in productivity of human capital and general quality of life.

For education and training, fund allocation has been increased 60pc from Rs20bn to Rs32bn to ensure availability of qualified human resource to match the highly competitive world market.

Water allocation has been proposed at Rs58bn, accounting for 14pc of the federal development outlay. Thirty-two small and medium-sized dams, eight in each province, will be financed. Similarly, adequate allocation has been made to the National Programme for Water Courses, irrigation system rehabilitation and lining of canals and distributaries.

To complete the Mangla raising project including resettlement of people, Rs12bn has been proposed and the Water and Power Development Authority will be able to store 2.9 million acre feet of additional water in the next monsoon.

The paper says in order to overcome energy shortages, investment by the government and WAPDA from its own resources will be around Rs139bn for power generation and its conservation.

A major initiative in the power sector will be the Diamer-Basha dam for which the government and WAPDA will arrange finances. Expenditure on the transport and communications sector has been estimated at Rs70bn, of which Rs40bn will go to the National Highway Authority (NHA) and Rs12bn to railways.

With a view to reducing poverty, providing employment and better quality of life and promoting good governance, the government will take various measures including establishment of technical institutes in 27 districts at a total cost of Rs27bn, continuing the Benazir Income Support Programme with outlay of Rs70bn, continuing the housing programme for poor and government servants with allocation of Rs1bn, initiation of an integrated agriculture marketing and storage infrastructure project to ensure food security and higher incomes for farmers, assisting small farmers with Rs4bn, introducing public-private partnership in dairy products with allocation of Rs3.5bn and establishing Reconstruction Opportunity Zones in NWFP and Balochistan at a cost of Rs3bn.

Thar coal infrastructure will be developed and for that the World Bank has pledged to provide assistance. Productivity of labour is very low compared to other countries and to sharpen the skills of the labour force, Hunarmand Pakistan programme will be financed.

 

[Neo]

‘Rice exports expected to cross $2bn during FY09’​

KARACHI: Total rice export from Pakistan has crossed $1.8 billion during the first eleven months of current financial year and it is expected that it will cross $2 billion mark, Abdul Rahim Janoo, Chairman Rice Exporters Association of Pakistan said.

He said this in a meeting with High Commissioner of the Republic of Kenya in Pakistan, Mishi Masika Mwatsahu at REAP House Tuesday.

"This spike in export is a result of the policies of the government of Pakistan and if the policy stance is continued we expect to cross the $4 billion rice export target set in the Vision 2012," Jano said.

It is pertinent to mention that during fiscal Pakistan was third largest rice exporting country in the world with exports amounting to 3.5 million tonnes of rice valuing more than $2.2 billion.

He said that REAP has sent trade delegations with the help of TDAP to Saudi Arabia and South Africa, which are the most successful delegations of the history of REAP as we received encouraging response in the shape of huge orders. Two more delegations are going in the month of June to Qatar and EU Countries as well. REAP has also planned to send delegations to Kuwait, Iran, Senegal and Zambia which are also the big markets of rice during July-August, he added.

High commissioner praising the role of REAP said that since Pakistan is a leading rice country we are strengthening relations with Pakistan to be one of its partner in commodity export.

She said that there is great demand of Pakistani rice in Kenya. "Talks are under way with the government officials to reduce duty on rice export," she said adding that we hope that problems in trade with Pakistan would soon be resolved.

"There is a great need to explore African markets as they have good potential for rice import," an exporter told Daily Times. He said although there is a problem of import duty in Kenya but other East African countries can give good results.

Only on Irri-6 rice quality there is about 35 percent import duty in Kenya, as they have to pay $150 per tonne and $3750 per container of 25 metric tonnes, he informed adding that on basmati rice the duty is much more than Irri-6.

Budget proposals: Meanwhile, REAP has sent following proposals and suggestions for the budget 2009-10 for the betterment of rice export:

Reduction in withholding tax on exports of rice from 1 per cent to 0.5 percent.

Reap has demanded matching grant facility for rice exporters in refinance part II only for one year.

In order to have safe trade activity, top priority should be given to law and order situation, especially in Karachi. Many countries link their import with export to get market access, we have done with Kenya and can do with many countries, for instance, with Malaysia for rice and palm oil. Growers should be given subsidy on purchase of seeds, pesticides, etc and on electricity as well.

REAP representatives should be taken on board for both Kala Shah Kaku and Dokri Rice research institutes.

 

[Neo]

‘US willing to facilitate Pakistani businessmen’​

KARACHI: The US government is ready to provide all possible cooperation to the Pakistani businessmen to get their proper share in US market.

Principal officer, Consulate of United States of America in Lahore, Bryan D Hunt said this while talking to a delegation of Pakistan Tanners Association (PTA) Tuesday.

However, he said that FTA is not possible because of the textile sector as providing free access to Pakistan’s textile sector would result in job losses in USA. He said Pakistani entrepreneur should come up with more creative idea like China to get more business in USA. There is already preferential treatment for Pakistan as compared to India and promised that he will suggest US government for more facilities and projects in the field of education and health.

Hunt said US government was already working in some underdeveloped and remote area of Punjab in the field of health care and to reduce child mortality.

He said opening of Visa Counter at Lahore was already under consideration and hoped it would be operational in near future. He said that people of both the countries should come closer to each other to have better understanding of both the nations. Chairman PTA, Agha Saiddain informed the US official due to frequent terrorist attacks in various cities of Pakistan and no travel advice of US government the customers were reluctant to visit Pakistan.

He said in these circumstances there was a dire need to facilitate Pakistani businessmen to have market access in all sectors specially leather, leather garments and leather footwear. Per capita shoe consumption of USA is 8 shoes per annum which is highest in the world and Europe which is number two after USA consumes four pairs per annum. China is the main beneficiary of US market and Pakistani’s export of shoe, garments, upholstery and leather is negligible as compared to China, India, Italy and Turkey. He said idea of ROZ’s in FATA and boarder area should only be expanded to interior Punjab, Sindh, Baluchistan and NWFP.