Pakistan Economy - News & Updates - Archive

[Neo]

April 04, 2007
234,000 tons of ethanol exports likely in ’07
By Parvaiz Ishfaq Rana

KARACHI, April 3: Rising oil prices in the international market are encouraging distilleries to convert larger volumes of molasses into ethanol which equally gets higher prices.

Use of ethanol as an alternative fuel is rapidly rising the world over, and Brazil has made it mandatory upon sugar mills to convert 70 per cent of their production into ethanol.

There is a higher volume of conversion of molasses into ethanol and according to estimates, the industry is expected to produce around 234,000 tons in 2007 as compared to 165,405 tons produced in 2006 which fetched $100.6 million at an average rate of $570 to $590 per ton.

Presently, most of the vehicles in Brazil are run on ethanol fuel and with latest technology, it is producing larger volumes through direct conversion of sugarcane into fuel grade ethanol.

The ministry of petroleum has suggested that in Pakistan at least 10 per cent blending should be made in regular fuel for public transport, but so far it has not been implemented.

However, the sugar industry is continuing to convert larger volume of molasses into ethanol having three grades, fuel (anhydrous), neutral (ENA) and industrial (REN). The entire production of ethanol is presently exported to European markets.

Dwindling export of molasses shows that the industry is now converting larger volumes into ethanol which fetches higher prices with the rise in oil prices in the world market.

Last year exporters managed to get higher prices close to $600 per ton for ethanol when world oil prices touched $60 a barrel. However, prices are presently hovering around $560 to $580 per ton in corollary with world oil prices.

According to official figures, there had been a consistent increase in ethanol exports for the last six years which indicates that distilleries are converting larger volume of molasses into value-added product of ethanol.

In 2000, the country exported around 20,841 tons of ethanol and next year it exported 32,800 tons. During 2002 and 2003, export of ethanol rose to 34,888 and 61,710 tons, respectively.

Similarly, there was a leap jump in export of ethanol in 2004 when exports touched 99,711 tons and in the following year, exports further rose to 122,104 tons. However, last year ethanol exports increased to 165,406 tons. The estimates for current year have been put by the industry at 234,000 tons.

Presently 16 distilleries are operating in the country with a total production capacity of 410,400 tons. Besides, there are four other units in the pipeline and after their coming into production, the total ethanol production capacity in the country would rise to 632,400 tons.

The production ratio of molasses to ethanol is 5:1 ton, meaning that five lakh tons of molasses will produce one lakh tons of ethanol.

This means that for producing the entire existing capacity of ethanol of 410,400 tons, the industry would require 2.052 million tons of molasses. However, after the addition of the four units, the ethanol production will rise to 632,400 tons and it would require around 3.162 million tons of molasses for conversion.

And to produce the estimated production of 234,000 tons during current year (January to December 2007) the industry would require around 1.25 to 1.3 million tons of molasses and there are strong indications that ethanol production would even exceed this volume.

The export of molasses is declining day-by-day and out of the estimated production of 1.8 million, less than 0.3 million would be exported during the current year.

A leading molasses and ethanol exporter Mohammad Kasim told Dawn that presently distilleries are operating at 60 per cent of their capacity and once there is larger volume of molasses, these units can enhance their production.However, he said ethanol production entirely depends on world oil prices.

Despite the fact that sugar industry’s profitability has improved after entering into ethanol production, the viability of producing more and more ethanol depends on world oil prices as it is being used as an alternative fuel to supplement regular POL products, he said.

Mr Kasim said during the last three months, the country managed to export or enter into export contracts of around 108,000 tons of ethanol, whereas last year the entire export volume was at 165,406 tons.

He further said during last five days, exporters received export contract prices in the range of $540 to $550 per ton of ethanol. Against this, molasses is being quoted at around $61 per ton in the world market. He expressed the hope that higher volumes of ethanol will be produced after looking at the rising world oil prices which are presently being quoted at $67 per barrel.

Last year Mohammad Kasim said the industry got better price at $620 per ton for ethanol and after looking at the developing scenario in the oil market, ethanol prices seem to firm up in sympathy.

Being an inflammable commodity, he said, ethanol needs extra care in the process of transportation as well as storage stages. There are special and expensive ships with a loading capacity of not more than 3500 to 4000 tons.

Similarly, he said at storage, extra care has to be taken and tanks have to be segregated by walls as a safety measure in case of fire. Moreover, storage areas be fully equipped with fire-fighting equipment to meet any eventuality.

http://www.dawn.com/2007/04/04/ebr4.htm

 

[Neo]

Wednesday, April 04, 2007

22.5m MT wheat output target to be crossed: MINFAL

* No inter-provincial and inter-district ban will be implemented on movement of wheat

By Sajid Chaudhry

ISLAMABAD: The ministry of food, agriculture and livestock (MINFAL) announced on Tuesday that wheat production target of 22.5 million metric ton set for this fiscal year would be surpassed and there would be no inter-provincial and inter-district ban on the movement of the wheat.

The government would not allow the market to crash and to ensure availability of Rs 425 per ton support price the government would continue to procure wheat up to the last available grain. The private sector would be allowed to export wheat according to a target to be set by the Economic Coordination Committee of the Cabinet (ECC).

This was said by Sikandar Bosan, Minister for Food, Agriculture and Livestock along with Secretary Food Ismail Qureshi during a media briefing Tuesday. The export of surplus wheat by the private sector would be allowed for which formal announcement would be made once the final figures of the crop are available. He said that private sector is expected to play an active role during the procurement drive, as liberal financing with the ratio of 90:10 would be made available to them through policy intervention by the State Bank of Pakistan.

He said that we are announcing allowing wheat export by the private sector in advance so that private sector could make it possible to export required quantity of wheat that would be available for export.

He said that Pakistan is all set to have a record wheat production. This achievement is primarily due to huge subsidy leading to balance use of fertiliser, adoption of good agri-practices by farmers and favorable weather condition. He said that to ensure that the farmers get adequate return on their produce and the market prices do not fall below the minimum price the PM has approved many steps. Elaborating these steps he informed that provinces and PASSCO have been advised to make adequate arrangements for the procurement of wheat, bandana, financing and establishment of procurement centres.

They have been given wheat procurement target of minimum 5 million metric tons and advised that these targets are indicative in nature and they should be ready purchase more than the target if needed. Punjab has reaffirmed its commitment to purchase all wheat offered for sale by the farmers up to the last available grain.

Sindh will at least purchase 0.7 million metric tons but will increase to 1 million tons dependant on the availability of wheat with farmers for sale. PASSCO would also make arrangements to purchase at least 1.3 million tons. He said that current wheat policy would remain in operation for the next wheat year to ensure that there are no inter-provincial and inter-district restrictions on the movement of wheat and non-coercive measures are taken while procurement.

He said that some 0.6 million tons wheat stock would be available by April 15, 2007. He said that government had allowed 0.8 million tons wheat export during last few months and no up date figure for the actual export is available. The minister informed that the government has enhanced the subsidy from Rs 250 to Rs 400 per bag on the phosphatic fertilisers with effect from April 3, 2007. This would help farming community to continue the balanced use of urea and phosphatic fertilisers for enhanced production in the country. He informed that in the international market, the prices of phosphatic and potassic fertilisers have increased from $250 FOB in January 2007 to $415 FOB in March, 2007 with the result that the landed cost of DAP bag is now around Rs.1500-1550, which used to be around 1100 in the recent past. He informed that subsidy on fertiliser for the current fiscal year would be around Rs 15 billion.

http://www.dailytimes.com.pk/default.asp?page=2007\04\04\story_4-4-2007_pg5_1

 

[Owais]

Pakistan and India agree to speed up IPI gas line project

NEW DELHI (April 05 2007): Pakistan and India on Wednesday reaffirmed unflinching commitment to complete Iran-Pakistan-India (IPI) gas line project on fast track basis and to ensure an additional source of import to meet their growing energy needs.

Prime Minister Shaukat held a meeting with his Indian counterpart Manmohan Singh at the latter's residence here, for 50 minutes, before the start of the second day Saarc Summit.

After the meeting, Shaukat told a press conference at Taj Maan Singh Hotel, where he stayed with his entourage, that his meeting with Indian Prime Minister was very fruitful and they discussed all important, bilateral, regional and international issues.

He said that IPI is a major project and Pakistan and India are equally committed to take it forward on fast track basis, and complete it in the shortest possible time. He said Indian Oil Minister Murli Deora had held a detailed meeting with the senior officials of his ministry and discussed different issues relating to the IPI project.

The Prime Minster said that he also discussed progress in the composite dialogue process which, of course, covered the core issue of Kashmir. He expressed confidence that the composite dialogue process was going to take Pakistan and India to a logical conclusion for amicable solution to Sir Creak, Siachen and Kashmir.

Shaukat told a questioner that work on the Kashmir issue was in progress at different levels, which also include backdoor channels. He also announced to reciprocate Indian Prime Minister's assurance for release of 540 prisoners who at present are in Indian jails by releasing Indian fishermen who were caught by Pakistan authorities for violating its territorial waters.

He said Indian Prime Minister had assured him to consider Pakistani prisoners on case-to-case basis. He added that Indian Prime Minister gave an assurance to provide Pakistan investigation progress in Sumjhota Express blast case which killed many Pakistani travellers.

He said Pakistan and India would hold Secretary level talks on Defence-related controversial issues. The two Prime Ministers also agreed that Pakistan and India would reciprocate each other for opening bank branches and also further facilitate people-to-people contact.

The Prime Minister added that he also held a meeting with Bangladesh administrator who is representing that country at Saarc, and discussed different issues of bilateral interest. He said Pakistan would give $10 million for import of food items, probably wheat.
http://brecorder.com/index.php?id=546419&currPageNo=1&query=&search=&term=&supDate=

 

[Owais]

PQA sees $4 billion FDI in various projects

KARACHI (April 05 2007): The Port Qasim Authority (PQA) is expecting $4 billion foreign direct investment (FDI) in its various projects to be constructed in the proximity of the port. The PQA has earmarked an investment of Rs 8 billion in various development plans in the port.

This was stated by the Chairman PQA, Vice Admiral Asad Qureshi while speaking at the launch of PQA's Procurement Manual with the help Transparency International Pakistan. He said, the Port Qasim Authority (PQA) contributed Rs 72 billion of revenues to the national kitty last year.

Admiral Asad Qureshi appreciated the TI Pakistan for the assistance it has been providing for the transparency in its procurement procedures. The PQA used the services of TI Pakistan to have their tender documents vetted to comply to the Public Procurement Regulatory Authority (PPRA) rules 2004.

He said, the authority would ensure that all procurements would be most transparent, so that they could obtain the best at the least price. The PQA's staff to study and follow the Procurement Manual in totality, he advised. The Chairman of Transparency International (TI) Pakistan, Syed AdiI Gilani explained the history as to how TI Pakistan was involved in the development of the National Anti Corruption Strategy, the promulgation of the Pakistan Regulator Authority and the formation of the PPRA rules 2004.

"The implementations of these rules are mandatory in all procurements of the Federal and Sindh Government," he pointed out. He said that the TI Pakistan had signed Memorandum of Understandings (MoUs) with a number of government agencies and the TI Pakistan were assisting these agencies in building their capacities to comply to the PPRA rules.

In this regard, a workshop had already been conducted to train procurement officials from a number of government departments, he added. The Procurement Manual comprises of all the standard bidding documents on procurement of works, goods and service based on international standards of the World Bank.

The International Federal of Consulting Engineers (FIDIC) and the Pakistan Engineering Council duly amended to comply with transparent procurement procedures, recommended by the National Accountability Bureau (NAB) in the National Anti Corruption Strategy of 2002, and fully compliant to the Public Procurement Rules (PPR) of 2004.

Director General of NAB, Sindh, Major General Mukhtar Ahmad appreciated both PQA and TI Pakistan on successfully developing the Procurement Manual. He said that this would enhance the capabilities of the PQA Procurement Staff.

He further said that the present government was determined to implement transparent procedures in all its dealing and was paying special attention to Transparent Procurement.

He assured that the NAB would comply with the provisions of the Procurement Manual while examining all contracts, especially those projects worth over Rs 50 million, as mandated by law. He explained that the NAB had circulated an evaluation form, which has to be completed by all federal agencies and forwarded along with contract documents of all its procurement.
http://brecorder.com/index.php?id=546536&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

April 05, 2007
Power shortfall surges to 1,100MW

LAHORE/ISLAMABAD, April 4: With the domestic power shortage surging to 1,100 megawatts, the Water and Power Development Authority (Wapda) decided on Wednesday to correspondingly increase the quantum of load-shedding.

According to a Wapda official, the demand on Wednesday increased up to 12,000MW against a supply of 10,900MW. The deficit, he said, was mainly caused by a decrease in water releases by the Indus River System Authority (Irsa).

“The country would be producing surplus energy if water releases by Irsa are increased,” they said. “Power generation is only a by-product and irrigation requirements dictate the water releases.”

Due to the water restrictions, Tarbella Dam contributed only 700MW against its installed capacity of 3,400MW. Similarly, Mangla Dam contributed only 900MW against the installed capacity of 1,000MW. The Ghazi Barotha Hydro-Project (GBHP) was restricted to 1,100MW against its capacity of 1,450MW.

The water releases are the decisive factor in current shortages, they insisted.

Meanwhile, the provinces on Wednesday jointly rejected a Wapda request seeking a daily increase in water discharge capacity by an average of 22,000 cusec from major dams for power generation to offset the shortage.

The consensus of the provinces emerged at a meeting of the Irsa advisory committee that finalised water availability estimates and distribution plan for Kharif 2006-07. The meeting was presided over by Irsa Chairman Muhammad Khan Memon and was attended by all Irsa members and representatives of the provinces and Wapda.

The Wapda authorities said that additional supplies would enable it to reduce the shortage by 500-600-megawatt. They had proposed to increase releases from Tarbela dam from 15,000 cusec to 30,000 cusec and from 28,000 cusec to 35,000 cusec from Mangla dam.

“The provinces turned down the request with consensus,” an official who attended the meeting told Dawn. The provinces took the position that an unprecedented quantity of water had been carried forward this year but it was specifically meant for irrigation and it “could not be allowed to be wasted” for power generation.

The meeting noted with satisfaction that there would be no water shortage in the Kharif season and the provinces would get full indented supplies from April to September. The meeting also finalised the anticipated water availability for the season and noted that about 4.1 million acre-foot (MAF) of water was carried forward by Wednesday.

The total water availability was estimated at 124 MAF for the season, of which about 76 MAF would be provided to the provinces in Kharif. The provinces did not have the capacity to use more water, the sources said. About 28 MAF of water would be used for escapages below Kotri while system losses would amount to 10 MAF. The remaining 10.5 MAF would be carried forward into the next Rabi season through storages.

The committee allocated 37.9 MAF of water for Punjab, 34.4 MAF for Sindh, 0.82 MAF for the NWFP and 2.85 MAF for Balochistan.

The meeting also noted with satisfaction that it had correctly predicted a 14 per cent water shortage in the just-concluded Rabi season and hoped that its estimates for the current season were even better.

Meanwhile, Minister for Water and Power Liaquat Ali Jatoi also confirmed that the country was facing a power shortage.

Speaking to journalists at the ground-breaking ceremony of Irsa building, he said the government was in the process of finalising an energy conservation plan for the current year and hoped that about 1200MW capacity addition would take place by next year.

He said that an independent consultant was being hired to investigate the failure of telemetry system and fix responsibility. He said the Rs340 million project had been initiated under the directives of the President Gen Pervez Musharaf but there were some outstanding issues. He said the project would soon be made operational.

http://www.dawn.com/2007/04/05/top10.htm

 

[Neo]

Non-life insurance sector depicts tremendous growth in 2006

KARACHI (April 05 2007): The non-life insurance sector depicted tremendous growth in 2006 as the combined profitability of the top 15 non-life insurance companies (having 88 percent share of the market capitalisation) stood at Rs 6.2 billion as compared to Rs 3.8 billion in 2005, with a growth of 65 percent.

The sector profits from the underwriting business surged by 14 percent, whereas, the major chunk in profitability was shared by investment income which soared by 66 percent to Rs 5.5 billion.

The net premium of the sector grew by 35 percent and reached Rs 15.3 billion in 2006 versus Rs 11.3 billion previously. However, this growth was not fully translated into the underwriting profits due to the higher claim ratio of 64 percent in 2006 as compared to 62 percent previously. Combined ratio (expense ratio + claim ratio) of the sector, on the other hand, stood at 83 percent which was due to lower expense ratio of 19 percent witnessed in 2006.

"While looking at the segment wise break-up of net premium we see that motor business contributed 54 percent in net premium of the sector followed by marine segment 18 percent, fire segment 17 percent and miscellaneous & treaty segments 11 percent", Haris Dagia, an analyst at JS Global Capital Limited said.

According to the figures available here earnings snapshot of key non-life insurance companies remained as diluted earning per share (EPS) of Adamjee Insurance grew by 36 percent in 2006, Askari Insurance 27 percent, Atlas Insurance 18 percent, Central Insurance 274 percent, Century Insurance 2 percent, EFU General Insurance 51 percent, East West Insurance -46 percent, Habib Insurance 306 percent, I.G.I Insurance 11 percent.

http://brecorder.com/index.php?id=546469&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Finance refuses to fund thermal power plants

ISLAMABAD (April 05 2007): The Finance Ministry has expressed inability to provide funds for setting up 450mw thermal power station at Chichoki Malian (Sheikhupura district) and 100mw station in Khuzdar (Balochistan) in the public sector, official sources told Business Recorder.

Earlier, the government had decided in principle that three thermal power stations of 200mw each would be established in Sheikhupura, Faisalabad and Khuzdar, but the decision was changed at a recent Cabinet meeting. However, the basic issue was arrangement of finances for two projects, as the Finance Ministry had refused to facilitate the utility, sources said.

They said that Finance Ministry said that it had no objection to the establishment of thermal power stations, but for financing, Wapda should arrange it from its own resources.

The Private Power Infrastructure Board (PPIB), however, has conveyed to the concerned quarters that if the government, or Wapda, or both were unable to arrange financing, it was ready to offer these projects for international competitive bidding (ICB). Sources said that dispute over financing is still unresolved, and the authorities may take more time to reach any conclusion.

PPIB was also under severe criticism for not making any progress on hydel or thermal power projects despite knowing that the country would face crisis-like situation in 2007-08, if additional generation is not inducted into the system.

In September last year, the Prime Minister had directed the Ministry of Water and Power and Wapda to ensure availability of energy to maintain the momentum of projected economic growth.

"Concerted efforts be made to increase power generation capacity from hydel, thermal, alternative energy and nuclear power supply as well as required mix be ensured to meet peak and lows in demand, both seasonal and locational," sources quoted the Prime Minister as directing the concerned departments.

They said that a committee on power demand-supply position, headed by the Water and Power Secretary Ashfaq Mahmood had recommended that public sector Gencos should make investment for two 450 mw combined cycle power plants which would reduce the time spent on arranging financing and tariff negotiations. But at the same time it was also observed that it would be a departure from the existing approach of inducting private power units.

However, Wapda Chairman observed that the schedule proposed by the committee was tight, and proposed commissioning dates of the units on open cycle by September 2007, and combined cycle by March 2008.

Later, Prime Minister Shaukat Aziz decided that no thermal power plant would be set up in the public sector, but when it was felt that the situation was going worse, the earlier decision was declared nullified, sources said. It is worth mentioning that the whole country is experiencing both announced and unannounced power load shedding.

http://brecorder.com/index.php?id=546438&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Thursday, April 05, 2007

CDGK to set up 350MW power plant over 20 acres in Bin Qasim Town

KARACHI: The city government in collaboration with the Port Qasim Authority and a foreign firm plan to set up a power generation plant that will have the capacity to generate 350MW electricity to cater to the city’s growing needs.

“For this purpose the government of Dubai is giving a suitable number of turbines as a gift to the city government. These turbines will be installed in the power generation plant in Bin Qasim Town,” said City Nazim Syed Mustafa Kamal, while addressing a press conference at the Camp Office located on Club Road Wednesday.

According to Kamal, the first phase of the plant’s construction will begin soon. The plant will be set up on 20 acres. In the future, it will be expanded to generate 1,800MW of electricity. The city government will provide land while other parties of the consortium will bear the expenditure to set up it. The electricity will be sold to KESC.

Responding to a question, he said that some three months ago he had called the higher-ups at KESC and asked them to improve their system before the summer season. He urged KESC to expand its self-generation capacity.

The nazim added that presently there were dozens of water and sewerage related projects underway at an estimated cost of Rs 16 billion. “During the last couple of months, the city government has installed and started the supply of water in many areas,” he explained. “Some of these areas had been deprived of a regular water supply for the last 20 years. These areas including Jaskani Mohalla, Muslim Colony in Keamari Town, and Manzoor Colony, in which potable water was supplied after 38 years.”

He mentioned that the projects that will be completed within the current year include the water supply projects in Gulistan-e-Jauhar, Clifton, Lyari and others. “We plan to provide potable water to the residents of Clifton, Saddar and old areas of city,” he mentioned. “To achieve this, the work on a 38-inch diameter pipeline in three phases is in full swing and will be completed within two to three months at the estimated cost of Rs 280 million to Rs 320 million.”

All ongoing road projects including Shahrah-e-Pakistan, the Sohrab Goth Flyover, University Road from Jail Chowrangi to Hasan Square, Road 5000 in North Karachi, Road 12000 and Shahrah-e-Orangi in Orangi Town, Altaf Hussain Barelvi Road and Malir Bridge will be completed before 2008.

Also, the city government is building Pakistan’s first major blood bank near the Quaid’s mausoleum. Three satellite centres for cardiac patients in Shah Faisal, Landhi and on the border of Orangi and Baldia town will be established within a few more months.

http://www.dailytimes.com.pk/default.asp?page=2007\04\05\story_5-4-2007_pg12_10

 

[Neo]

Pakistan rated 84th in terms of IT growth

By Imran Ayub

KARACHI: Pakistan has been rated 84th in a pool of 122 nations in terms of growth in information technology by a world-recognized body, giving a serious setback to the government’s claims, which counts the sector growing at a faster pace with an industry size of $2 billion.

The Global Information Technology Report 2006-2007 prepared and issued by the World Economic Forum (WEF) selected 122 countries in a broad sample to study their growth in IT and potential to further excel in the sector in the years to come.

“With record coverage of 122 economies worldwide and published for the sixth consecutive year, The Global Information Technology Report (GITR) has become the world’s most respected assessment of the impact of information and communication technology (ICT) on the development process and the competitiveness of nations,” said the WEF in comments tacked with the report.

“The Networked Readiness Index (NRI) measures the propensity of countries to leverage the opportunities offered by ICT for development and increased competitiveness. It also establishes a broad international framework mapping out the enabling factors of such capacity.”

The report suggests Pakistan’s IT sector fell 17-time further than previous year, as in the report for 2005-06 the country managed to retain 67th position in the world’s leading player of the sector.

“Under the theme, ‘Connecting to the Networked Economy’, The Global Information Technology Report appears at a critical juncture in the evolving role of ICT in the world economy, when access to the global network is increasingly perceived as an important cornerstone for the development of economies and societies,” said the WEF.

Denmark, Sweden and Singapore slotted top three positions in the IT world while India’s position declined to 44th against 40th ranked last year. Recognised as the most respected and authentic document, the report’s findings about Pakistani IT industry are bound to prompt the authorities to think again before devising a growth strategy.

The country’s software exports crossed $70 million during 2005-06, registering for the first time a 50 per cent growth, as western firms started turning more and more to Pakistan for IT-enabled services to cut costs and raise profits.

The officials and industry players believed the rising export figures showed Pakistan was catching up fast in the race for software development and at such rate, the country’s global IT revenue should reach almost $9 billion by the end of 2009-10. However, the latest WEF report obliges the authorities to work harder and draw up plans which win the country a better position among competing countries.

“The Networked Readiness Index examines the preparedness of countries to use ICT (information and communication technology) effectively on three dimensions: the general business, regulatory and infrastructure environment for ICT; the readiness of the three key stakeholders — individuals, businesses and governments — to use and benefit from ICT; and their actual usage of the latest information and communication technology available,” said the WEF following the report’s release.

Countries from Asia and the Pacific continue to do well this year, with Hong Kong, Taiwan, Japan, Australia and Korea occupying 12th, 13th, 14th, 15th and 19th positions, respectively, although Taiwan and Korea are losing some ground from last year (down 6 and 5 positions respectively).

The WEF says India and China show both a downward trend, with India 4 positions down to 44th and China 9 positions down to 59th.

“Notwithstanding some specific clusters of ICT excellence in both countries (China and India), their performance overall in leveraging ICT for increased development appears to be particularly hindered by weak infrastructure, with a very low level of individual ICT usage for India and of individual and business readiness and usage for China,” it added.

http://www.thenews.com.pk/daily_detail.asp?id=49628

 

[Neo]

Provinces receive Rs167.18bn from FDP

By Mehtab Haider

ISLAMABAD: Four provincial governments have so far received Rs167.185 billion in shape of Federal Divisible Pool (FDP) during the current fiscal year, it is learnt.

Out of total budgetary estimates of Rs321.078 billion transfers in shape of FDP, the federating units have received Rs167.185 billion in the first seven months (July-Jan) of the current financial year.

According to official data obtained by The News, Punjab received Rs94.073 billion during the first seven months through FDP transfers against budgetary estimate of Rs180.240 billion for the whole fiscal 2006-07.

In divisible pool, Punjab got Rs35.827 billion in shape of its share in income tax collection against estimate of Rs57.685 billion for 2006-07. The provincial government led by Ch Pervaiz Elahi received Rs18.672 billion in shape of its share in sales tax collection against total estimate of Rs38.763 billion.

It received Rs12.389 billion in shape of 2.5 per cent of GST during the first seven months against budgetary estimate of Rs26.695 billion. It received Rs6.086 billion in shape of its share in federal excise duty, Rs15.965 billion through customs duty, Rs4.417 billion through GST (VAT), Rs687.052 million through CVT and Rs28.126 million in wealth tax.

Total releases to Sindh stand at Rs42.400 billion in the first seven months of FY 2006-07 in shape of FDP. The Sindh government received Rs14.809 billion in shape of its share through income tax against budgetary estimates of Rs23.844 billion. In shape of sales tax, the provincial government received Rs7.718 billion against budgetary estimates of Rs16.023 billion.

The Sindh government led by PML(Q), MQM and other allies got Rs8.635 billion in shape of 2.5pc of GST in first seven months of the current fiscal. Sindh also received Rs2.515 billion in shape of Federal Excise Duty, Rs6.599 billion through customs duty, Rs2.838 billion as GST (VAT), Rs283.996 million as CVT and Rs11.626 million through W tax.

The MMA led NWFP government received Rs22.141 billion in shape of FDP during the current fiscal year. The provincial government received Rs8.632 billion in shape of income tax in first seven months against budgetary estimate of Rs13.898 billion for 2006-07. The provincial government obtained Rs4.498 billion in shape of sales tax, Rs2.460 billion as 2.5 per cent GST share, Rs1.466 billion through Federal Excise, Rs3.846 billion as customs duty, Rs1.064 billion GST (VAT) and CVT Rs165.534 million.

The cash-starved Balochistan received Rs8.570 billion in shape of FDP during the current fiscal year. The provincial government obtained Rs3.191 billion in shape of income tax during the first seven months of the current fiscal year.

Balochistan got Rs1.663 billion in shape of sales tax in current fiscal against envisaged budgetary estimate of Rs5.139 billion. The provincial government received Rs1.663 billion as 2.5% GST share, Rs542.192 million as Federal Excise, Rs1.422 million as custom duty, Rs393.543 million as GST (VAT), Rs61.207 million as CVT and Rs2.506 million as W Tax in July-Jan period of the FY 2006-07.

http://www.thenews.com.pk/daily_detail.asp?id=49629

 

[Neo]

Foreign banks may buy 47pc of Pak units

LAHORE: Foreign banks are likely to acquire 47 per cent of Pakistan’s banking assets by the end of this year, which will increase competition and make the sector more efficient.

Governor State Bank of Pakistan Dr Shamshad Akhtar stated this while talking to newsmen at a prize distribution ceremony of the Institute of Bankers Pakistan on Wednesday.

She said foreign banks had acquired smaller efficient domestic banks that were unable to meet capital requirements of the State Bank. The acquired Pakistani banks, she added, would become part and parcel of their parent banks that were operating on global standards.

She said these banks would bring in new technology and raise the standard of banking in the country.

Earlier in her address to the bankers, Dr Shamshad Akhtar said the banking sector was the biggest success story of Pakistan’s economy. The World Bank in its latest report has termed Pakistan’s banking sector the ‘best in the region’. Talking about inflation, she said core inflation had dropped to 5.7 per cent, which was even below the budgetary target of 6.5 per cent. “This is the success of the bank’s monetary policy.”

Food inflation, however, was due to supply constraints, she said, adding the government had taken steps to plug supply-demand gap, which would give good results.

She said the central bank would continue its tight monetary stance till the inflation was brought down to the desired level.

The monetary policy was largely market-driven and short-term interest rates and open market operations were prudent instruments utilised by the SBP, she added.

Regarding low deposit rates, she said besides the central bank it was also the duty of the depositors to demand higher mark-up, adding commercial banks had introduced some new attractive products for the depositors that they should avail.

She said no unlicensed dealer was allowed to collect deposits from the public and warned the bank would take strict action against those found indulging in that practice.

In the end, Shamshad Akhtar distributed awards among those who completed their courses at the institute.

http://www.thenews.com.pk/daily_detail.asp?id=49633

 

[Neo]

Pakistan's electricity theft, system losses estimated at Rs80b

5 April 2007

ISLAMABAD — Pakistan is losing Rs80 billion annually on account of electricity theft and system losses in the power sector. A day long workshop here yesterday called upon the government to reduce power losses to greatly overcome the growing power crisis in the country.


Some of the participants wondered why the power utilities and distribution companies have not been able to reduce their system losses and that the government should look into the issue seriously.

The workshop also recommended for mandatory display of energy efficiency labels on electric equipment, subsidising energy efficient equipment, a proper policy on energy saving devices. They also discussed introducing time of day metres for all the sectors of consumers thereby fixing higher charges for peak hours and less in off-peak use

It also called for introducing a system of punishing consumers for use of low-quality electrical material and equipment as a tool for energy conservation to overcome the growing power crisis in the country.

This is one of the many proposals the policy makers are considering at the moment. If approved, this would need appointment of new workforce on the pattern of electricity inspectors to check consumer premises to ensure quality of wire, equipment and materials to reduce system losses, even though the consumers pay for these losses.

This was the gist of a day-long workshop in which the ministries, the power regulator and the power distributors agreed that conservation and demand side energy management was the only solution to an immediate energy crisis arising out of more than 2,000mw of electricity supply shortage this summer. They recommended a long list of measures for conservation and demand side energy management - ranging from two weekly holidays to early closure of commercial activities. But most of their recommendations were focused on energy savings from the point distribution companies supply electricity to consumers, rather than from policy making to delivery point except energy loss reduction programme.

The workshop "Conservation of Energy and Demand side management" was organised by National Electric Power Regulatory Authority (Nepra) and attended by ministries of water and power, petroleum and natural resources, National Energy Conservation Centre (Enercon), Pakistan Engineering Council and all power distribution companies participated. There was no representation from the planning commission.

A representative of the GTZ of Germany and an official of a distribution company Ibrahim Khattak asked the policy makers to show on televisions and in real life top government functionaries like the prime minister and his ministers conserving energy who enjoyed free electricity that would send a positive signal to the people.

Chairman National Electric Power Regulatory Authority (Nepra) Lt. Gen. (retd) Saeed-uz-Zafar said two weekly holidays, apart of saving a lot of energy, could be a very good alternative to early closure of commercial activities to make up for reduction in commercial hours. He said a committee comprising distribution companies, Nepra and other related agencies would make recommendations to the government on the subject.

Managing director of Enercon Pervez Tahir told the workshop that the country would be facing electricity shortage of more than 2000mw this summer and everybody should get ready to share it. Asked as to why the government agencies have not been able to do supply side management to overcome shortage instead of suppressing demand, Tahir said the government agencies were asking for efficient use of energy which was not demand suppression.

Secretary water and power Ashfaq Mehmood said a combination of house keeping measures besides options like pricing as a tool to demand side management, education and awareness could be considered to overcome the shortage. He said the government did not support subsidising energy saving devices and it should be seen by the consumers as a business benefit. He did not comment on supply side measures to overcome shortage.

While the participants exchanged views on conservation, some of them on the sidelines also discussed that Chairman of Wapda who practically heads distribution and generation companies of Wapda chartered a special plan from Lahore to reach Islamabad the same day to meet secretary water and power.

They proposed that consumers should be made through the electricity metres to use good quality cables and equipments and replace them after some time because a lot of energy was lost by old cables and equipment. This, they said, be done by re- introducing electricity test certificates before new connections — a practice the Wapda's military management had done away with on the grounds that it encouraged corruption. The workshop recommended that energy advisors should be appointed to convince consumers about conservations.

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ABN Amro increases stake in Prime Bank

KARACHI (April 06 2007): ABN Amro has increased its stake in Prime Bank to 96.17 percent following the expiration on Thursday of its cash tender offer. A press release issued here said that at the close of the tender offer, ABN Amro had obtained additional 7,581,894 shares, representing 2.77 percent of the issued share capital of Prime Bank.

This marks the completion of the transaction. The Prime Bank remains listed on three stock exchanges in Pakistan and ABN Amro plans to merge its Pakistan operations into the Prime Bank in future.

http://www.brecorder.com/index.php?id=547194&currPageNo=2&query=&search=&term=&supDate=

 

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'Vision 2030 to help move towards prosperity'

KARACHI (April 06 2007): The Vision 2030 compilation process encompasses different issues of population growth, health, education, livelihood, irrigation, infrastructure, alternate energy sources, environment and other problems identified during the many consultations that have taken place.

The Vision 2030 document will enable the government of Sindh to plan accordingly and subsequently move towards the ultimate goal of prosperity and development. This was stated by Ghulam Sarwar Khero, Additional Chief Secretary (ACS), Planning and Development at the concluding consultative workshop held here to deliberate upon the characteristics of the vision 2030 for Sindh.

He emphasised on population growth, either through natural births or from an influx of people from other provinces of Pakistan and from neighbouring countries. He shared statistics on population influx and quoted past studies on this subject stating that in the 70's the government of Sindh incurred about Rs 11,000 per person annually for different services and infrastructure. This figure had risen considerably over the last 35 years due to inflation and devaluation.

The ACS emphasised the problems of law and order that were also attributable to huge influx of people into Sindh. He criticised compartmentalised planning by different district governments instead of coordinating efforts to pool resource for collective and efficient development, because ultimately we are dependent upon each other.

He emphasised upon the need to explore alternate energy resources to meet the looming energy crisis and water shortages. He welcomed all participants from Thatta and Karachi and appreciated their willingness to contribute to the compilation process.

These consultations were the initiative of the planning & development department that included representatives from civil society organisations, elected representatives, industrialists, businessmen, agriculturists and professionals from all walks of life.

A lively discussion took place on the occasion, which highlighted the core concerns of the government. These included excessive expenditures by the provincial government on immigrants from other provinces. Issues relating to poverty reduction and marginalised communities and access to opportunities were also discussed at length.

The participants felt it essential to start with baseline data so that planning can be realistic. Consistency in government policy was highlighted for achieving success in the social projects in particular.

Industrialist Nisar Shekhani shared experiences of industrial development in different countries and suggested the urgent need for proactive measures and plausible incentives for this sector. He emphasised upon the need to ensure law and order across the province.

Lala Hassan Pathan of Aurat Foundation emphasised the need for standardised and accessible judicial system for all citizens including men and women. He stood for an immediate ban on Jirga system and other alternate/parallel judicial systems.

Water expert, Qazi Abdul Majeed emphasised the need to ensure water distribution according to the 1991 Accord and suggested that deliberations to be focused on the need to generate coal and wind energy and to avoid construction of any dam on river Indus. The workshop was held here following a series of consultative workshops held in Hyderabad, Mirpurkhas, Nawabshah and Sukkur.

Presenting the outcome of group deliberations were senior environmentalists, Muhammad Ali Khaskheli, Chief Economist Sindh, Manzoor Hashmi, Chief Vision 2030, Hussain Tawawalla of National Management Consultants (Pvt) Ltd, Adam Malik of Action Aid International, Nasir Panhwar of IUCN, Shoukat Memon of Sindh Graduates Association and Ibad ur Rehman of Cleaner Production Institute besides senior government officials, civil society activists and people from different walks of life.

Earlier consultations in February involved all secretaries, senior officials and heads of sections of P&D department. National Management Consultants (Pvt) Ltd was retained by Sindh government to organise the consultations and to help prepare Sindh Vision 2030 document.

http://www.brecorder.com/index.php?id=547286&currPageNo=1&query=&search=&term=&supDate=

 

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Acer to promote IT in Pakistan

KARACHI: Jacob Varghese, Regional Country Manager of Acer Computer Middle East announced Acer Company will take measures to promote Information Technology in Pakistan. Talking to newsmen here at a local hotel, he said Pakistan holds a key position regarding IT and there are many opportunities to invest in this field. He said the company has decided to invest in Pakistan. In this connection, Repair and Drop Services would be provided in the first phase including LCD Monitors and Projectors while details are being worked out, he added.

http://www.thenews.com.pk/daily_detail.asp?id=49794