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BRUSSELS: The European Union (EU) and Pakistan on Tuesday signed a civil aviation deal, allowing EU-based airlines to operate flights to Pakistan from any EU state that already has an agreement with Islamabad. “The agreement signed today is good news for both Pakistani and EU airlines, as well as for passengers, as it removes the legal uncertainty” from existing bilateral deals, said EU Commission Vice President Antonio Tajani. The EU has negotiated similar accords, which in practice remove nationality restrictions for EU airlines under existing bilateral air services agreements, with 45 countries. The legal clarity was required because in November 2002 a European court ruled that air agreements between one EU nation and a third country were discriminatory and in breach of EU law.
 

Friday, February 27, 2009
By Mehtab Haider

ISLAMABAD: The Asian Development Bank (ADB) has offered to double its annual assistance to Pakistan from earlier planned $1.5 billion up to $3 billion in order to help it improve infrastructure and overcome budgetary difficulties.

“We can double our annual assistance to Pakistan for the next three years provided funds availability with the Bank increases,” ADB Vice President Xiaoyu Zhao told reporters after holding a meeting with a Pakistani delegation, led by Minister of State for Economic Affairs Hina Rabbani Khar, on Thursday.

The ADB is currently preparing a three-year Country Partnership Strategy (CPS) for 2009-10 to 2012-13 under which assistance to Pakistan could be jacked up to $9 billion from earlier planned $4.5 billion. “The ADB on Thursday offered Pakistan to double its annual assistance up to $3 billion from earlier envisaged $1.5 billion from 2009,” a senior official of the ADB said.

An ADB delegation, headed by its Vice President Xiaoyu Zhao, called on Prime Minister Syed Yusuf Raza Gilani here at the PM House on Thursday afternoon, and agreed in principle to finance Diamer-Basha dam project.

“We can double Pakistan’s assistance up to $3 billion per annum provided Islamabad makes a request in this regard as well as funds with the ADB increases,” the Bank’s vice president told reporters. On the most critical issue of tight monetary policy, he said the inflation was showing a declining trend and easing of monetary and fiscal policies could be done to give an impetus to sluggish economic activities.

It is relevant to mention here that under the IMF prescription the government is reluctant to decrease discount rates that have resulted into choking the whole economic activities and slowed economic growth.

Pakistan and the IMF during recently concluded talks at Dubai agreed to review the monetary policy in future line of Pakistan but the central bank will not ease down its monetary stance unless the core inflation comes down.

When the ADB Vice president was asked about financing facility of the bank for mega water projects, he said the ADB was ready to extend its financing facility for construction of mega water projects in the country.

The PPP-led government is making plans to construct over $12 billion Basha dam on which the work will be started within the ongoing calendar year 2009.

He said the major challenge for Pakistan’s economy is lack of state of the art infrastructure, resulting into creating difficulties for achieving sustained growth.

On this occasion, the minister of state for economic affairs hoped that the ADB would extend its $500 million budgetary support under Economic Transformation Programme before June 2009. However, during the meeting with the prime minister, the premier expressed the hope that this cooperation would continue for helping the country to overcome the shortage of energy, water and food through construction of new dams and other related projects. He said construction of farm to market road network, development of urban and rural areas, provision of equitable economic opportunities as well as improving the social sector particularly the health and education facilities are the foremost agenda before the government.

The premier said the government is fully committed to reducing poverty, increasing per capita income, generating more jobs and improving the living standard of the people. He said owing to prudent economic policies undertaken by the government, the economy is now started showing positive results.
 

ISLAMABAD (March 03 2009): Federal Minister for Communication, Dr Arbab Alamgir Khan, has said that establishing road linkages between Pakistan and Kazakhstan would immensely benefit the economy of both the countries. He said this in his meeting with the Ambassador of Kazakhstan H E Bakhytbek Shabarbaye where they discussed the ways to enhance trade and transport relations between the two countries.

He further said that the present government wanted to establish a more close and cordial relationship with Kazakhstan. He said that Benazir Bhutto was the first Pakistani leader who visited Kazakhstan. He said that the present government wanted to take the vision of the great leader forward and expand the trade activities between Pakistan and Kazakhstan.

He said that the government was working on a plan to establish a world class road infrastructure. He said that our aim was to link the Gawadar and Karachi ports with the neighbouring countries through Highways and Motorways. He informed that Lowari Tunnel project was near to completion, which would give Pakistan a short and easy access with Tajikistan and other Central Asia republics.

He said that under Chairman National Highway Authority (NHA), a delegation would soon visit Kazakhstan and hoped that people related to road and transport industry in Kazakhstan could come here and explore new possibilities of investment in Pakistan.

He said that visa rules between two countries needed to be made more relaxed to give people a chance to have greater interaction with each other that would ultimately result in greater understanding between the two governments. The Ambassador thanked and said that his government shared Pakistan's efforts for better relationship between the two countries. He formally invited the minister for the first ACD Ministerial Transport Forum to be held in Astana in April, which was happily accepted.
 

Wednesday, March 04, 2009

ABU DHABI: Shaheen Air plans to buy seven used and two new Boeing aircraft and start flights to India and Iran, its executive director said on Tuesday.

“We have almost completed the process of acquiring seven Boeing 737-200 aircraft from an airline in South Africa,” Khalid Bashir Anjum told Reuters on the sidelines of an aviation conference in the United Arab Emirates. He did not give details. “We will also be acquiring two new Boeing 737-900 ERs by end-2010. The new aircraft will enable Shaheen to start new routes to Mumbai and Mashhad in Iran,” he said, adding that Shaheen would also increase flights to Dubai, Abu Dhabi, Kuwait and Muscat.

The airline, which has a fleet of seven Boeing 737s, flies to six destinations in the United Arab Emirates, Oman, Qatar and Kuwait.

Shaheen stopped flights to Leeds in Britain last year after fuel prices peaked, he said. “But we are thinking about resuming flights to the UK, to some secondary airport, and to Canada provided fuel prices remain stable and not too high” said Anjum, adding that the airline may lease a few Boeing 777 ERs for the flights.
 

Thursday, March 05, 2009

KARACHI: Pakistan, Turkey and Iran have decided in principle to operate container train service from Istanbul to Islamabad via Tehran and Iran, in the first phase and a passenger train service in the second phase.

The technical details of the first phase container train service were discussed threadbare at a meeting of senior railway officials of three countries held in Tehran with Pakistan represented by General Manager Railway (Operation) Saeed Akhtar.

On return on Wednesday morning from Tehran, Saeed told APP that tentatively it has been agreed to start this container train service from August 14. The train, he pointed out will either start from Islamabad on August 14 or arrive Islamabad from Istanbul on the day of Independence of Pakistan.

“We want to make it a ceremonial occasion to launch the container train service from Islamabad while Turkey is pressing its launch from their end”. However, GM Railway said, even if it starts from Istanbul we have told them that the train should reach Islamabad on August 14.

Akhtar said that during the meeting various issues were raised, particularly the customs related formalities and since there was no custom representative present in the meeting, it was decided to sort out this issue in the next meeting to be held in April, in which representatives of customs from three countries would also be invited.

Replying a question, the railway operational chief said that Tehran has completed the track between Zahidan and Kirman and the same has been linked up with Pakistan side of railway network. He pointed out that Turkey and Iran already have railway link up at their borders and both have freight and passenger train services.

To another question, he said, that prior to launch of the container train service, there could be problems of technical, administrative and security and these would be discussed in the April meeting. Replying a question, he said the size of the train would depend on the availability of business containers. However, he hoped that the first train would carry about 40 containers.
 

ISLAMABAD (March 07 2009): The construction of long-awaited (Faisalabad-Multan) motorway M-4, costing Rs 40 billion, will start soon. The project, to be financed by the Asian Development Bank (ADB), was designed by the National Engineering Services Pakistan Pvt Limited (Nespak), well placed Sources in the National Highway Authority (NHA) told Business Recorder here on Friday.

The sources said that M-4 (Faisalabad-Multan) motorway was the biggest project of the country. They revealed that all the land required along the motorway had been acquired and the tenders for initiating construction work would be floated in April. The work on the project is expected to start by August. It is a three-year project to be completed by 2012 with a total cost of Rs 40 billion.

They further said that total length of motorway is 223 kilometres. It will start at Kamalpur near Faisalabad and will pass through Painsara, Gojra, Toba Tek Singh, Shorkot, Khanewal and end at Multan. Sources added that the project would be a four-lane motorway with structures (bridges etc) for six-lane.

Maximum design speed on this motorway would 120-kilometre an hour and there would be 25 bridges, 42 flyovers and five service areas, they added. There will be seven interchanges (Faisalabad, Painsara, Gojra, Toba Tek Singh, Shorkot, Abdul Hakeem and Khanewal) on the road. With the completion of M-4, the total length of motorways in Pakistan would exceed 800 kilometres and the people would enjoy the world class travelling facility right from Peshawar up to Multan city.

The sources said that it was among the priority projects of NHA, being a part of National Trade Corridor, and added that the development of new roads would contribute to the prosperity of the people, while the country would be made hub of trade and economic activities through development of communications network to reap the real benefits of the countrys geo-strategic location.

Prime Minister Yousuf Raza Gilani during his visit to Multan last year announced that the National Highway Authority would execute the much awaited project by July 2008, but due to some reasons the project was delayed and now it is expected to start in August.
 
Do loans from the Asian Development Bank have high interest rates?
 
Lowari Tunnel project Work on second phase in full swing

By Our Staff Reporter

ISLAMABAD, March 8: The National Highway Authority (NHA) has completed excavation work on the Lowari Tunnel project which will be opened for traffic next year, NHA spokesman Kashif Zaman told this reporter on Sunday.
He said after completion of the first phase on January 14, speedy work was in progress including laying of railway track, air ventilation system, lighting system, walkways and a loop in the middle of the passage. Once operational, the 8.5 kilometerlong Lowari Tunnel will be the biggest project of its kind in Pakistan, he added.

General Manager Lowari Tunnel project Col (retired) Salman Rashid told Dawn that the cost of the project prepared in the year 2000 was about Rs8 billion which was now likely to touch the Rs13 billion mark due to the continuing rise in prices. “We are working on the revised cost,” he added.

According to the plan, a rail will run through the seven-metre wide tunnel.

Vehicles of all kinds with the passengers on board will be uploaded onto the rail at one end of the tunnel and downloaded at the other.

The rail proposed to be run through the track will have the capacity of carrying about 23 vehicles. In the middle of the tunnel, there will be a loop for changing track by the trains. Approach roads will also be constructed on both sides of the tunnel.

The tunnel will provide the valley of Chitral with an allweather route besides giving Pakistan a short and easy access to the Central Asian countries. The opening of the tunnel will also boost tourism and trade activities in the area.

The GM said the tunnel was a complex project and, therefore, technical assistance was sought from foreign experts. Accordingly, Austria provided all the technical help in excavation of the tunnel while Spain will assist the NHA in laying of the railway track and engines, he said.

islamabad, march 8: the national highway authority (nha) has completed excava- tion work on the lowari tunnel project which will be opened for traffic next year, nha spokesman kashif zaman told this reporter on sunday. he said after completion of the first phase on january 14, speedy work was in progress in- cluding laying of railway track, air ventilation system, lighting system, walkways and a loop in the middle of the passage. once operational, the 8.5 kilometer- long lowari tunnel will be the biggest project of its kind in pakistan, he add- ed. general manager lowari tunnel project col (retired) salman rashid told dawn that the cost of the project prepared in the year 2000 was about rs8 billion which was now likely to touch the rs13 billion mark due to the continuing rise in prices. “we are working on the revised cost,” he added. according to the plan, a rail will run through the seven-metre wide tunnel. vehicles of all kinds with the passengers on board will be up- loaded onto the rail at one end of the tunnel and downloaded at the other. the rail proposed to be run through the track will have the capacity of carrying about 23 vehicles. in the middle of the tunnel, there will be a loop for changing track by the trains. approach roads will also be constructed on both sides of the tunnel. the tunnel will provide the valley of chitral with an all- weather route besides giving pakistan a short and easy ac- cess to the central asian coun- tries. the opening of the tunnel will also boost tourism and trade activities in the area. the gm said the tunnel was a complex project and, therefore, technical assistance was sought from foreign experts. accordingly, austria provided all the technical help in excava- tion of the tunnel while spain will assist the nha in laying of the railway track and engines, he said.

Lowari Tunnel project Work on second phase in full swing
 

Tuesday, March 10, 2009

KARACHI: An international tender for an airstrip in Thar, approved by the government a few days ago, would soon be called for starting work there as part of efforts to utilise coal reserves on war-footing to meet energy needs of the country, according to Senator-elect Dr Khatumal Jeewan.

In an interview with The News, Dr Khatumal, former adviser to Sindh chief minister on mines and mineral development and chairman Thar Coal Authority, said the airstrip was planned to be built at ‘Shava Jo Daro’ after addressing concerns of the Civil Aviation Authority and the defence ministry, but regrettably, former Sindh chief minister abruptly changed its location, resulting in litigation. However, the present govt resolved the issue around 10 days ago and the airstrip was brought to its original location.

As the need of water would increase after mining there, he said, the Water and Power Development Authority (WAPDA) had also approved a canal there. Moreover, around 25 river osmosis plants had been planned, each having capacity of producing one lakh gallons of water per day by turning salty water into sweet water.

Metalled roads from Karachi and Hyderabad to Thar had been constructed. Efforts were also being made to provide drinking water in Nau Kot. A 25-bed hospital was in the process of completion to meet any eventuality as accidents may occur in mines while a 25-room hotel was in final stages in Islamkot to provide better accommodation facilities to investors there.

“Everything is ready now for utilisation of coal reserves,” he said. As the country was facing energy crisis, the government had started focusing on utilisation of coal reserves for power generation. The Sindh government had launched a joint venture, in which six multinational companies were involved. An international conference was held in Washington in collaboration with the World Bank for utilisation of coal reserves where around 36 companies showed interest, he said.

Five blocks, each having one billion tonnes of coal, had been given to companies/groups at ‘cheaper rates’, which the government cancelled, he said. President Asif Ali Zardari during his two visits to China tried to revive an agreement with Shenhua Group Corporation with whom a memorandum of understanding was signed but WAPDA changed the tariff. He said the country was giving up to 17 cents per unit on thermal power plants while the MoU with Shenhua offered 5.7 cents per unit. When the former government signed the MoU with Shenhua, it was a government company. Later, it was taken over by private groups and President Zardari was trying to revive the agreement with it.

He said a Chinese firm had signed a contract for utilising coal in Tando Mohammed Khan and Mulla Katiar where it would establish a 300-megawatt coal-based power plant. He said six blocks had been prepared and millions of dollars were spent on them. “Cost of drilling one hole comes to Rs2 million and PCSIR gets Rs55,000 for test of one layer.”

A British company had been given one block, which would conduct a study within three months. Later, “we would give them a licence for exploration and a power plant would be established within three years.”

Another block had been given to the World Bank. He said the PPP government had focused on energy. The president and prime minister had issued instructions for utilising coal reserves on war-footing. For this purpose, Thar Coal and Energy Board was set up under the chairmanship of Sindh chief minister and comprised minister for power and representatives of other federal organisations to provide one-window facility for investors.

Keeping in view growing energy crisis, Prime Minister Yousuf Raza Gilani called a high-level meeting for utilisation of Thar coal reserves attended by the four chief ministers and Dr Khatumal. Representatives of National Electric Power Regulatory Authority (NEPRA) and Private Power and Infrastructure Board (PPIB) were also invited to resolve tariff issue.

Thar coal reserves were discovered in 1988 when drilling was carried out for water by the then Sindh Arid Zone Development Authority (SAZDA). Dr Khatumal, also a member of SAZDA, recalled that in the second PPP govt, Benazir Bhutto inaugurated work there. It was the vision of BB to utilise coal reserves in Thar.

She had also launched Keti Bunder project, which was a huge coal project where 5,000 megawatts power plant was supposed to be established. But regrettably, it was stopped by the next govt, which did not give any attention to mineral development.
 
China confirms two more nuclear reactors for Pakistan
March 10th, 2009 - by 2point6billion.com



As we reported last October, China has now begun work on designing two nuclear reactors for Pakistan to be housed in the countries Chasma Nuclear Power complex in Punjab. The Chinese State run Shanghai Nuclear Engineering Research & Design Institute has just announced it has begun designing the third and fourth generators for the Pakistan complex.

Of the first two, one is currently being installed and will be operational by next year, while the first has been online and linked into Pakistan’s energy grid since 2000. The new reactors will have a capacity of 325 mgw each, while improvements and upgrading of the first reactor will also be taking place. China’s Shanxi Diesel Engine Heavy Industry Company has already provided the emergency diesel generation system for Chasma, while a third company, China Zhongyuan Engineering, is the general contractor.

Reports from Pakistan have stated that Beijing is to finance 85 percent of the project, estimated at US$1.61 billion, however China has to date remained silent on the matter.

Chinese-Pakistani ties have always been friendly. Following the saying my enemy’s enemy is my friend both nations have been supporting each other politically and militarily.

When India and Pakistan were on the brink of war recently, Pakistan had requested China their ally and India’s largest trading partner to intervene, to restore peace in the region. China has also not being shy in economically supporting Pakistan in infrastructure, water and power projects.

Ties between the two nations had mellowed in 2007 during the height of China’s growth and Taliban activity in Pakistan; however now post the India-U.S. nuclear deal and the Mumbai attacks, China-Pakistan ties have strengthened.
 

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