Pakistan Economy - News & Updates - Archive

[Owais]

Bids for deep-water port invited


KARACHI (September 03 2006): Karachi Port Trust (KPT) has invited bids for pre-qualifications for site investigation work from international marine contractors for developing country's deep-water port for container ships in the neighbourhood of its lower harbour.

The planned modern deep-draught berths are to be constructed at 'Keamari Groyne', to help accommodate larger vessels at the port. The idea is to build a major regional transit and transhipment hub for handling the current and future generations of container vessels with up to 17 metres draught.

The marine contractors should be of international repute who specialise in site investigation works with capability to carry out geophysical surveys, marine boreholes and vibrocore sampling in-situ and laboratory testing to international specifications. The contractor must have jack-up barges and seismic survey equipment and be able to start work by November 1 this year.

The facility is intended to enable Karachi port in the recent hype scenario in shipping dynamics and the forecast of boosting trade growth to create very strong regional markets.

The KPT has also been planning for a long time that it could provide transhipment facilities and access to larger vessels, which would help in increasing throughput as well as utilise optimum infrastructure of the port.

The deep-draught berths would provide terminal 24 hours and 7 days a week (round-the-clock) access for vessels, with no tidal restrictions.

The terminal would also be equipped with quay cranes (rail tyre gantry), rubber tyre gantry (RTG), spreader stackers, forklifts, empty handler, towheads chassis, chassis and power generator facility.

Karachi port registered overall growth of 13 percent cargo during 2005-06, which is a sign of economic activities in the country. For the first time in the history of KPT, containerised cargo crossed the mark of 1.144 million Twenty Equivalent Units (TEUs), resulting in a growth of more than 25 percent.

The port's overall cargo handling crossed record 32.2 million tons and managed 1995 vessels, against 1768 ships in previous year. The cargo handling at the port remained on a rise registering a massive growth of 32.35 percent in dry cargo, as 21.60 million tons cargo was handled, against 16.32 million tons of previous year.

This was mainly due to the growing demand of fertiliser, coal, cement and sugar.

Liquid cargo handling remained low this year--at 10.66 million tons--compared to 12.29 million of previous year. However, the port will be connected to the White Oil Pipeline shortly, which will enhance its liquid cargo handling.

Due to an increase in demand of imported vehicles, the port handled a phenomenal number of 57,352 vehicles during the year compared to 18,699 of previous year.

 

[Owais]

Holland group to invest $160 million in stores


ISLAMABAD (September 03 2006): The Steenkolen Handels-Vereeniging (SHV), a Netherlands based group of companies that runs cash-and-carry business in different countries, is all set to open its branches in Pakistan with an initial investment of $160 million.

Sources told Business Recorder that Makro-Habib Pakistan, a joint venture of SHV Holdings NV and House of Habib, would establish 12 cash-and-carry stores in different cities under the brand name of 'Makro'.

A delegation of SHV holdings NV during a meeting with Minister for Industries and Production, Jehnagir Khan Tareen recently sought government help in locating suitable places for setting up these stores. The Minister promised all-out help to the delegation and said that such stores in Pakistan would provide the much-needed market for farm and dairy products.

Sources said that the government is keen to attract investment in different sectors for which it offers incentives and concessions to prospective investors.

They said that 'Makro' is 'cash-and-carry' wholesale concern, selling in high volume food and non-food products to customers. Target customer groups are small and medium size retailers, caterers and institutional markets.

At present, 'Makro Asia' has 69 stores in different countries and its head office for Asia is in Bangkok. The group would initially set up 12 stores in Pakistan.

Sources said that fresh food (meat, fish, vegetables, and fruits), dairy products, dry food, packed food, spices, personal care products and much more would be available to the customers at a single place.

 

[Owais]

World Bank raises 44 percent aid for NWFP DPC-II


PESHAWAR (September 03 2006): The World Bank has announced 44 percent increase in the financial aid for second phase of social sectors reforms programme (DPC-II) of the NWFP government by enhancing it from $90 millions to $130 million as well as releasing the funds as soon as the required conditionalities for this programme are fulfilled.

Announcing the decision, Harsha Atarupen, team leader of the visiting eight-member World Bank mission in a high-level meeting chaired by NWFP Senior Minster Siraj-ul-Haq at Cabinet Room of Civil Secretariat Peshawar on Saturday, lauded the performance of NWFP government on ensuring the transparent use of the recently released World Bank assistance of $90 million for first phase of DPC-I besides vivid progress towards achieving the targets.

Among others, Finance Secretary Ziaur Rehman, Education Secretary Shafiullah Khan, Health Secretary Abdus Samad, Industries Secretary Abdul Khaliq of NWFP attended the meeting.

It is worth mentioning here that the reforms programme under (DPC) is aimed at improving the standard of all social sectors in NWFP in a great and consistent manner wherein education and health sectors were given special attention.

The World Bank has released $90 million tranche in lump-sum for the first phase of this programme as a result of hectic efforts of the NWFP government and overall excellent performance.

The mission head said WB Country Director Johan Wall in view of the financial discipline, outstanding work in improving social sector and horrendous earthquake last year, had assured prompt release of the DPC-I tranche of $90 million as well as increasing that amount to $120 million for next phase during his Peshawar visit and meetings with the provincial senior Minster few months back.

He, however, said it was later decided by the World Bank to make an increase of $10 million more to enhance these funds to $130 million for next phase owing to the satisfied implementation on first phase of the reforms programme (DPS-I).

The NWFP senior minister while eulogising the gesture of the World Bank about financial management and outstanding performance of the NWFP government, assured that the MMA government would ensure the transparent and judicious use of the assistance and loans provided by the international community and the set goals obtained accordingly.

 

[Owais]

Damage from rains: growers demand Rs 50 billion rehabilitation package


HYDERABAD (September 03 2006): Expressing grave concern over the widespread devastation wreaked by recent rains in lower Sindh, the Sindh Abadgar Board (SAB) has demanded of the federal government to announce a relief package of Rs 50 billion for the construction of infrastructure, government properties, houses and rehabilitation of the affected people.

The Board at its monthly meeting held here on Saturday under the chairmanship of Abdul Majeed Nizamani reviewed the overall situation following the heavy rains. It observed that the Kharif crops had suffered irreparable losses and all the districts of lower Sindh except Thar, Kohistan and Kachho had been devastated due to rains and collapsed drainage system.

It said that as soon as the monsoon season started, the irrigation department closed all canals and water channels although it should not have been done in those areas which had not been affected by rains. It observed that the irrigation department should have only maintained vigilance on the embankments.

It noted that due to overflow and breaches in the LBOD, Mirpurkhas, Umerkot, Badin, Tando Allahyar, Thatta and Tando Muhammad Khan districts had suffered the most.

It claimed that according to the survey conducted by it, 75 percent cotton crop and 80 percent vegetables and fodder had been destroyed in Mirpurkhas; 70 percent cotton and 80 percent vegetables had been destroyed in Umerkot; 80 percent cotton, 20 percent sugarcane and 90 percent vegetables in Sanghar, 85 percent cotton, 25 percent sugarcane and 55 percent vegetables in taluka Jhando Mari of Tando Allahyar district had been destroyed.

It said that crops in Badin and Thatta districts had suffered losses to the tune of Rs 3 billion and Rs 2.5 billion respectively, and added that taluka Tando Ghulam Hyder and Bulri Shah Karim of Tando Muhammad Khan district had also been seriously affected.

It noted that tax exemptions in these areas would prove meaningless, and demanded of the federal government to announce a relief package of Rs 50 billion to rehabilitate the infrastructure and compensate the affectees in these districts. It further demanded that the government, to combat natural calamities like earthquakes, epidemics, floods etc, should formulate a disaster management policy.

It said that a detailed inquiry should be held into the wrong designing and non-performance of LBOD and its capacity should be increased. It said that the irrigation department should be directed to withdraw the rotation programme to ensure water supply at the tail-end.

The Sindh Abadgar Board took strong exception to the approval of nine new sugar mills--eight in Punjab and one in Sindh--and termed it as dangerous for the agrarian economy. It questioned the wisdom of the government in sanctioning new sugar mills when only 65 percent of the required 63 million tons sugarcane was being produced in the country for the existing 74 functional mills.

It said that it will not only destroy the textile industry but will also create cotton and wheat crises. It argued that for production of additional sugarcane, a lot more water would be required which will increase tension between Punjab and Sindh.

It demanded that the approval of the new sugar mills should be withdrawn, adequate price should be fixed for sugarcane, sugar mills should be directed to start crushing season in October and new varieties of sugarcane which could produce more sucrose should be discovered through research.

In another resolution, the board demanded that on the pattern of chemical fertilisers, prices of pesticides of different brands should be fixed and strict action should be taken against those dealers, who are selling spurious and expired pesticides to the growers.

 

[Owais]

President for modifying dairy farming


RAWALPINDI (September 03 2006): President General Pervez Musharraf on Saturday stressed the need for effectively harnessing the dairy resources of the country. Chairing a meeting here, he observed that although Pakistan is one of the largest producers of milk, it ranked very low in dairy products.

The meeting here at the Camp Office reviewed progress on the development of dairy products in Pakistan. Whereas production of milk could still be increased significantly by enhancing per cow yield, which is very low as per international standards, the dairy manufacturing sector was unable to make optimum use of the milk already available.

The President identified the poor collection/marketing systems and use of obsolete technology as the causes for Pakistan's backwardness in this sector.

Industries, Production and Special Initiatives Minister Jehangir Khan Tareen briefed the meeting about the measures being taken for the growth and development of the dairy sector in the country. Over 640 model farms will be established by June 2007 and this number will increase to 2440 by 2013, he said.

During the meeting, strategies for achieving medium-term goals through private and public sector collaboration were also discussed.

Matters relating to structural reforms in dairy industry, and up-gradation of Food Laws and quality standards also came under discussion.

Musharraf said there is a need for reorganising dairy farming in the country on modern lines, so that this vital and untapped resource might be utilised to earn foreign exchange.

He emphasised that the development of the dairy sector would greatly help in job creation and poverty alleviation.

The President also instructed for human capital development in the sector by imparting vocational training. He appreciated the role of Pakistan Dairy Development Company, a public-private partnership, in improving the lot of eight million dairy farming households in the country.

Appreciating the financial contributions made by the private sector to strengthen the company, the President assured that the government would also provide necessary financial and administrative support to the Company. Representatives of various dairy farms, foreign experts, and other senior officials attended the meeting.

 

[Neo]

KARACHI, Sept 2: A lull seems to have set in the functioning of the government at all levels in last ten weeks or so following in quick succession a few landmark events in Pakistan’s history.

These are: Supreme Court judgment on Pakistan Steel, Opposition’s vote of no confidence against the prime minister in the National Assembly, and recently Nawab Akbar Bugti’s death and his controversial burial.

In Sindh, the distance between the chief minister and his cabinet colleagues, belonging to his own party as well as of those of Muttahida Qaumi Movement (MQM, has again increased to a stretch that there is virtually no communication and ministers and advisers complain of many files, summaries and issues again piled up on the chief executive’s desk.

Major decisions awaiting approval of the government include setting up of a micro finance bank with public private partnership, appointment of a fund manager for pension fund, several investment proposals and setting in place a system to allot land on less than market price to legitimate investors, government teachers’ issues, and opening of provincial jobs.

“The chief minister has no time to discuss issues of his province,” a minister complained, who with his few other colleagues want to discuss the employment, industrialisation and other issues. The MQM ministers look visibly in a state of shock on Bugti’s death and the way he was buried.

“Balochistan was the only province after Sindh where some of our MQM colleagues enjoyed the best of hospitality during the eventful decade of nineties,” a MQM leader in Sindh government confided.

At the federal level too, the policy draft on Small and Medium Enterprises (SMEs) is almost finalised and is waiting for a final vetting by the prime minister secretariat for last few weeks.

The “Rozgar” scheme was announced in the federal budget for 2006-07 and is now to be launched on Tuesday but not with much fanfare that could match what Benazir Bhutto did for announcing her Employment Programme in 1989 and then Self-Employment scheme in 1994 and Nawaz Sharif’s Yellow Cab scheme in 1992.

Unemployment has always been a chronic issue in Pakistan on which all military governments have remained indifferent and totally unconcerned but political governments—-even those of late Mohammad Khan Junejo in 1986 and Shaukat Aziz in 2006—-try to offer some lucrative programmes to get some support.

Government sources and banking circles attribute the delay in launching of the Rozgar scheme to “political factors” without elaborating whether it is an in-house division of the mega size federal cabinet on this issue or the emerging question mark on Pakistan’s political horizon. Whatever the reasons are, the ministers in Sindh cabinet belonging to MQM or PML (Q) are as much in wilderness as an educated young man, who is desperately looking for a job and is eagerly waiting for the details of scheme

But the government programme that is most hardly hit by the lull is privatization, which has come to a virtual halt.

After a nine-member bench of the Supreme Court scrapped the privatisation deal of Pakistan Steel on June 23, the government showed a brave face of going ahead with its public sector divesture agenda with same religious fervor and commitment.

On August 3, 2006 its website showed the list of more than two dozen entities to be privatised before the end of 2007. This list of upcoming privatisation has now been removed from the website and has been replaced by another list that shows names of same entities but without any indication of dates.

Pakistan Steel was on top of the previous list with a note that its 51 to 75 per cent shares will be offered with management control. The date was to be announced “after resolution of technical problems.” No word is coming from the government on future plans for Pakistan Steel.

Media reported on Saturday that a few directors on the board of Pakistan Steel have decided to quit on charges of “too much government interference” and sources in Pakistan Steel say that the contract term of the PSM Chairman General (retd) Abdul Qayuum has expired.

“The chairman is on notice to hold office till appointment of a new head,” a well placed source in Pakistan Steel disclosed, who said that the contract term of the present chairman has expired more than eight weeks ago but the government is not able to find a successor.

“This uncertainty is affecting the working of Pakistan Steel,” the source said.

As many as ten privatisation deals were to be taken up in the year 2006 that include offering 90 per cent shares with management control of Heavy Mechanical Complex and Heavy Electrical Complex.

The sale of management rights of National Investment Trust (NIT) in the current third quarter (July to September) of 2006 is probably the most significant and important privatisation that would have far-reaching impact on Pakistan’s corporate world.

There is no word if any progress is being made on NIT divesture as the month of September begins. Another significant feature of privatisation programme is offering of Oil and Gas Development Company (OGDC’s) GDR to foreign investors.

Substantial headway has been made and road shows organised abroad are being addressed by top leadership of the government. The stock brokers and corporate leaders remain unsure whether these GDRs of OGDC would be offered in the stipulated time frame.

As it appears that divesture of shares and offering of management control of Pakistan State Oils, Pakistan Petroleum, Sui Southern Gas, Sui Northern Gas, Faisalabad Electric Supply Company, Peshawar Electricity Supply Company will be put on hold till next elections expected either in 2007 or 2008.

The Opposition political parties have made a big issue of privatisation of Pakistan Steel after the judgment of Supreme Court but are apprehensive of transactions of Habib Bank Ltd. Pakistan Telecommunications, Karachi Electric Supply Corporation and many other deals.

“All these controversial deals are bound to dominate the electioneering next year or in 2008,” a local PPP leader declared.

 

[Neo]

Sunday, September 03, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\09\03\story_3-9-2006_pg5_2

LAHORE: Heavy monsoon rains across the country are expected to increase sugarcane production by 15 percent both in terms of yield per acre and sucrose recovery, say agriculture experts.

Talking to the Daily Times, agriculture experts pointed out that the heavy rains are a blessing for the sugarcane crop and the increased production would bring down sugar prices the next year.

The Punjab government has recently increased support price for sugarcane to Rs 60 per maund and the Sindh government is likely to make further increase in it.

However, the sugarcane farmers have recently expressed concerns over surplus stocks lying with sugar mills ahead of the next crushing season, fearing that any delay in the start of crushing season may bring losses to them. Therefore, they have urged the government to restrict the Trading Corporation of Pakistan from releasing undue stocks in the market unless the sugar mills exhaust their stocks.

The sugarcane farmers had received lucrative price for their crop in the last crushing season and, in some cases, farmers received Rs 100 per maund against the government announced price of Rs 48 per maund. Eventually, the sugar millers increased sugar prices and the government kept on arresting the prices throughout the outgoing year. But still sugar prices in the market have remained above Rs 30 a keg. The government received flak from the opposition and the people over rising sugar prices. The opposition also included the prices of sugar in its charge sheet prepared against the prime minister in the recent no-confidence motion.

The sugarcane farmers have been facing tough conditions since 1999 when then commerce minister Abdul Razzak Dawood announced duty-free import of sugar from India on the basis of wrong figures provided by the ministry of food, agriculture and livestock on crop estimates. The millers, which kept on criticizing the decision of importing duty-free sugar from India, delayed the crushing season that put farmers in a difficult situation. The sugar industry delayed payment to many farmers across the country that discouraged the farmers' community at large and they lost interest in sugarcane crop. The country witnessed an unprecedented increase in sugar prices, which jumped up to Rs 40 a kg in 2002-03. The sugar industry had been facing a glut-like situation and the government was left with no option but to activate the Trading Corporation of Pakistan to procure surplus stocks of sugar mills before the next crushing season.

Things did not improve in the next two years and sugarcane farmers avoided heavy plantation till 2005 when abnormal rise in petrol prices compelled Brazil to produce more ethanol fuel from sugarcane than sugar. This created a shortage of sugar in the international market.

The decline in sugarcane cultivation in Pakistan led to an increase in prices of sugarcane, resulting in disputes between the millers and growers in Sindh and criticism of the government by the sugar industry.

Heavy rains this monsoon season have again given hope to the farmers, as they were expecting a fall in production if there were insufficient rains. What remains to be seen whether the government would be able to manage the prices or not, say analysts.

 

[Neo]

Sunday, September 03, 2006http://javascript<b></b>:; http://www.dailytimes.com.pk/print.asp?page=2006\09\03\story_3-9-2006_pg5_5

ISLAMABAD: Federal Minister for Kashmir Affairs and Northern Areas Maj.(R) Tahir Iqbal has said Rozgar Pakistan Programme would be launched in Northern Areas along with other parts of the country to overcome unemployment issue in the area.

He was addressing a public gathering at village Gaje, District Ghizr of Northern Areas. He also distributed compensation cheques for Rs 100,000 each among the families of seven flood victims who died during the rains and landslides last month.

 

[Neo]

BEIJING (updated on: September 03, 2006, 15:53 PST): Chinese private companies will soon finalise deals with their Pakistani partners to make investment in the energy sector, said sources in the China Chamber of Commerce for Petroleum Industry (CCPI).

The CCPI will send a delegation to Pakistan later this year to finalise their ongoing negotiations.

The sources told APP in Beijing that the Chinese companies were encouraged by economic and investment policies of Pakistan government and prepared to undertake joint ventures in the oil and coal mine sector.

According to the secretary general of CCPI, Wang Junjue, the deals vary from joint oilfield development to coalmine investment. This will be a breakthrough for private domestic oil companies on the overseas market, he added.

Nearly, 30 MoUs were signed by private oil companies of both countries during a forum held in Islamabad in late April. These MoUs cover investment in oilfields, oil refineries, coal-fired power plants and hydropower projects.

The two sides also discussed a possible oil pipeline from Gwadar Port to Xinjiang and building up oil storage and refining facilities at the port.

The oil pipeline proposal was made in a general co-operation agreement reached by the two governments during President Pervez Musharraf's official visit to Beijing in February.

The two countries also proposed at the forum to establish an international joint fund to support the development of energy projects by Chinese private oil companies in Pakistan.

According to the informed sources, the Chinese petroleum industry has indicated an interest in shifting its excess capacity to Gwadar. The CCPI and All China Federation of Industry and Commerce (ACFIC) conveyed to Pakistani authorities during a recent visit that the Chinese petroleum industry was keen to invest in Pakistan's energy sector.

The ACFIC and CCPI indicated that both the public and private sectors were willing to cooperate in energy projects in Pakistan. This co-operation will not be restricted to building oil pipeline to set up an energy corridor to Gwadar, but also in shifting energy related industry to Pakistan.

However, the government will need to provide strong support to lay down a framework for a safe financial, investment and security environment in Balochistan to attract this investment, the sources said.

The Chinese petroleum industry sees four potentially fruitful projects. Firstly, an oil pipeline linking Gwadar to Xinjiang in China to set up an energy corridor.

The economic viability of such a project was yet to be worked out. Secondly, the development of Gwadar Port Energy Zone, where the Chinese could set up an oil refinery with a capacity of 21 million tonnes.

Thirdly, the Gwadar energy zone could accommodate other energy sector industries. The Chinese business groups said that China has excess capacity in the petroleum services industry and planned to move the excess capacity to Dubai, but was now considering shifting it to Gwadar, the official added. According to their initial estimates, the Gwadar Port Energy Zone could attract investment of up to $13 billion.

Fourthly, the Chinese petroleum industry also indicated an interest in oil and gas exploration projects in Pakistan, the official said. The Chinese business groups had proposed that a Pak-China energy and trade co-operation promotion association be established for such projects.

The association would include members from the oil and gas sector and other industries in the power sector. They had also suggested that a Pak-China joint investment company be set up to finance these projects, the sources added.

 

[Neo]

LAHORE: Promotion of information technology culture in Punjab is the top most priority of the government and in order to make the Punjab province hub of information technology, the provincial government has increased the budget up to Rs 800 million this year while a number of new projects have been started.

Punjab Minister for Information Technology Abdul Aleem Khan stated this while presiding over the departmental review meeting, here on Tuesday. He disclosed that computerisation of different departments and public sector organisations were being designed. He added that at a cost of Rs 512.921 million new projects have been designed in Auqaf, Co-operatives, Food, Excise & Taxation, Transport and Police departments.

He told that already ongoing schemes would be completed by spending Rs 287.09 million in this fiscal year, which would enhance the capacity of government departments. For creating awareness I.T. seminars would be held in colleges and universities by the government while exhibitions of information technology and software competitions would be arranged to provide better and competitive opportunities to the students, he added.

 

[Neo]

Developing Thar coal


ESTIMATES of the current power shortage in the country vary from expert to expert. On one point, however, there is a clear consensus: Pakistan’s energy crisis will assume critical proportions in the foreseeable future if plans to substantially increase generation capacity are delayed any further. Besides infrastructure development, the uninterrupted supply of power-generation inputs is a major concern.

The government itself now admits that there is no “tangible or bankable” progress on proposed gas pipelines from regional suppliers. This is a critical, though expected, setback given that domestic gas output alone cannot meet future power generation needs. Oil-fired plants, though vital in the short term to fill existing shortages, are becoming increasingly unviable because of costlier petroleum products. Also, there is no consensus in sight on big dams that can produce cheap hydroelectricity on a large scale. However, this doesn’t mean that we should not go full-speed ahead on the construction of small- and medium-sized hydroelectric projects.

In this dire scenario, there is an urgent need to focus on indigenous and cost-effective sources of power generation. Pakistan’s estimated coal deposits are second only to those of the US but coal’s share in electricity generation is less than one per cent — compared to 77 per cent in India, 58 per cent in the UK and 52 per cent in the US.

Sindh accounts for 99.7 per cent of the country’s 184.66 billion tons of coal deposits, of which 175.51 billion tons are located in Thar. According to the deputy chairman of the Planning Commission, the country “can generate around 20,000 megawatts for almost 40 years” by using only two per cent of existing coal reserves. Clearly, the way forward lies in developing Thar’s vast coal resources. It is imperative, however, that the authorities take into account the serious environmental risks associated with coal processing and utilisation — especially the release of particulates and greenhouse gases — as well as the potentially hazardous impact of the mining process itself. Coal power need not be as ‘dirty’ as it used to be. In this connection, the focus must be on relatively clean European technology that is already proving to be commercially viable. The US may attempt to use Pakistan as a dumping ground for the obsolete plants it needs to phase out to meet its own environmental standards. This must not be allowed to happen.

 

[Neo]

LAHORE: Provincial Minister for Women Development Ashifa Riaz Fatyana has said upcoming women expo in the provincial metropolis would help empower women economically and socially.

Ashifa said the achievements and accomplishments of Pakistani women deserve to be recognized and celebrated.

She stated this while addressing a press conference to brief the media regarding up-coming Women’s Expo to be held at Fortress Expo Centre, Lahore from September 8 to 10.

She said that provincial Ministry of Women Development is working to turn the idea of women empowerment into a reality.

She said that Women’s Expo Lahore is the continuation of Women’s Expo held in Karachi in April this year and it would be organized in all the major cities of Pakistan.

The 3-day exhibition is being organized by 4th Dimension Pvt Ltd in collaboration with Department of Women Development, Government of Punjab, German Agency for Technical Cooperation (GTZ) and Parks and Horticulture Authority (PHA) along with several other government and non-government organizations.

She said that during the Women’s Expo, experts from health & nutrition, education & training, beauty, fitness & home management would undertake health screenings, enlighten women about their multi dimensional roles by sharing their success stories, provide free recipes & nutrition solutions, discounted beauty services as well as guide the participants about cost effective ways of house makeovers, household tips and quick fix approaches.

She said that several local organizations from the region will participate under the banner of their respective chambers at Women’s Expo Lahore.

Care Foundation and Kashf Foundation have been given complimentary stalls for the social awareness among the masses.

She said that over fifty thousand invitations have been extended to women working in various walks of life. Over one thousand dignitaries from the region are invited as guests of honour.

Minister said that “Hunarrang” Pavilion is being established in collaboration with the Department of Women Development, Government of Punjab for promoting and projecting cottage industry.

CEO 4th Dimension Mustafa Qayyum said that this 3-day Exhibition would promote Women’s Gender Mainstreaming and provide them with networking opportunities to celebrate their success and achievements.

 

[Owais]

ECC forces Wapda to procure HEC transformers


ISLAMABAD (September 04 2006): The Economic Co-ordination Committee (ECC) of the Cabinet has forced the Water and Power Development Authority (Wapda) to procure 132/11 kV transformers from the Heavy Electrical Complex (HEC) which the utility fears would be taken up seriously by the Public Accounts Committee (PAC).

Sources told Business Recorder the water and power ministry had apprised the ECC, in its previous meeting that the Heavy Electrical Complex was unable to submit the required guarantee and Wapda should be allowed to procure transformers on competitive basis.

They said that Wapda had invited bids for 132/11 KV transformers for which two main local manufacturers - the Siemens and the Heavy Electrical Complex - along with foreign firms participated.

Though the foreign bidders had quoted lower price, the two local firms were given higher ranking after allowing for price preference as per commerce ministry's SRO No 827(1), 2001, the sources added.

Keeping in view the capacity of suppliers, orders of 38 transformers of 20/26 MVA and 10 transformers of 10/13 MVA capacity were placed to the Heavy Electrical Complex besides, Siemens and an Iranian supplier.

However, the Heavy Electrical Complex being in serious financial crisis was unable to submit performance bond and the bank guarantee despite Discos extra-ordinary offer of 30 percent advance payment. This had delayed the installation of transformers.

Sources said the industries ministry had suggested that instead of bank guarantee a guarantee of the State Engineering Corporation (SEC) should suffice, which Wapda had refused to accept.

"This is not acceptable to Wapda, and would attract serious objections of the PAC as imprudent commercial arrangements besides seriously exposing Discos to financial risks," the sources quoted the water and power ministry as saying in its arguments.

Sources also said the Heavy Electrical Complex has recently indicated that it might be able to arrange bank guarantee against 50 percent interest-free advance, but would still unable to post performance bond up-front.

"Wapda is examining it favourably as an extraordinary measure even though non-provision of performance bond up-front is in non-conformity with commercial practices and contracting procedures. However, even if HEC starts manufacturing transformers at this last stage, it will not be able to meet the demand of Discos," the sources quoted the ministry as further saying in the ECC meeting.

The water and power ministry, while taking stock of the situation had made it clear that because of continuing overloading of the 132/11 kV secondary power system, apprehended that if immediate action was taken to augment the transformation capacity, the condition in the next summer would be worse than the current year.

The ministry had suggested that requisite transformers should be procured on war-footing with free-hand to complete the task themselves or with the assistance of Wapda, if needed.

The ministry had also proposed that all the Discos should make efforts that at least the grid stations, which are, at present, loaded at 90 percent or above are augmented by end April 2007 with corresponding improvement in the transmission system.

Sources said the ECC heard the viewpoint of ministries of the water & power and the industries and directed Wapda to procure transformers from financially-sick the Heavy Electrical Complex.

 

[Owais]

'September critical for cotton crop'


ISLAMABAD (September 04 2006): The month of September is critical for cotton crop because of heavy rains and extended monsoon season, Crop Commissioner Dr Qadir Bux Baloch told Business Recorder here on Sunday.

He said that cotton crop has been sown on 8.01 million acres--6.5 million acres in Punjab, 1.5 million acres in Sindh and 0.1 million acres in Balochistan and NWFP. Of this, cotton crop over 0.4 million acres has been damaged--0.25 million acres in Punjab and 0.15 million acres in Sindh--by heavy rains and floods.

He said that since the monsoon season is still continuing, with already 10 percent more than normal seasonal rain, Minfal was not in position to make any forecast about the actual cotton production at this stage, though the production target of 13.8 million bales had been fixed at the time of sowing.

He said that the Federal Crop Committee, comprising senior officials of Federal and Provincial ministries of Food & Agriculture and the Agriculture Extension Services Departments would meet in the first week of October to review the Kharif crops position and their likely production.

He said that because of the rains, overall cotton picking and arrivals in the ginning factories would remain slow, but once the rainy season was over, the situation could considerably improve.

Dr Baloch said that at present the cotton crop is not under major pest pressure.

About other Kharif crops, he said that sugarcane had been sown on 10 percent more acreage than last year and due to timely rains the crop was in good condition.

 

[Owais]

M-8 project put on hold for security reasons


ISLAMABAD (September 04 2006): The government has put on hold Rs 5.177 billion M-8 construction project - the highway that will provide road linkages to country's biggest sea port - owing to volatile law and order situation in Balochistan, sources told Business Recorder.

The government, it is reliably learnt, has requested the Frontier Constabulary to make fool-proof security arrangements for completion of the road project connecting multi-billion dollar Gwadar port with country's main road network.

According to details, the National Highway Authority (NHA) is undertaking a project of more than Rs 5.177 billion to construct M-8 that comprises Gwadar, Turbat, and Hoshab sections.

Sources said nearly 193.3-km-long M-8 has been categorised in three sections, one Gwadar to Turbat (53.6-km), second Gwadar to Turbat (63.45-km), and the third Turbat to Hoshab that is around 76.25-km. Similarly, the authorities have allocated Rs 1.545 billion for the construction of first section of Gwadar to Turbat, Rs 1.699 billion on the second portion of Gwadar to Turbat road, whereas Rs 1.932 billion from Turbat to Hoshab, the last section.

The multi-billion Gwadar deep seaport project that lies at the heart of President General Pervez Musharraf's vision of prosper Pakistan is already embroiling in controversies, as its inauguration has been rescheduled twice.

Despite firm directives by President General Pervez Musharraf and Prime Minister Shaukat Aziz, the authorities have failed to timely complete the road and rail network to connect the Gwadar Port with the main network. According to the last Economic Survey, the government has neither succeeded in establishing road network nor completed rail infrastructure connecting the biggest seaport with the main communication network.

President Musharraf firmly believes that the Gwadar project is of natural importance and it would help in enhancing linkages with Afghanistan, Central Asian and Gulf states, making Pakistan a vibrant hub of commercial activities for the energy rich states.

He has time and again asked the authorities to complete all work relating to Gwadar port so it may be made operational in all respects in the current year.

However, the deteriorating law and order situation in Balochistan - the biggest province areas - wise has almost made impossible for the government to carry on its development projects there especially after the killing of Baloch tribal chieftain Nawab Akbar Bugti.

Sources told Business Recorder that the construction of M-8 was scheduled to be completed in September 2006, as the authorities were directed to accomplish the project as early as possible. But the volatile law and order situation in the province where Chinese camp was attacked and series of explosions have forced all contractors to stop the work.

It is learnt that the authorities have so far spent Rs 3.299 billion on the said project that has succumbed to worsening law and order situation. The FC has been requested to make security arrangements that would cost an additional amount of Rs 195 million.

When contacted, Federal Communication Minister Shamim Siddiqui admitted that the project was put on hold due to deteriorating law and order situation in the area.

However, he negated the impression that the project was in limbo, hoping the construction work would resume in a day or two. He said the help of the Frontier Constabulary has been sought and there would be no more a security issue. When asked, the minister said the other road projects connecting Gwadar with the main network have been completed timely and M-8 would soon be completed too.