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Pakistan and China sign memorandum to set up investment company

ISLAMABAD (July 22 2007): Memorandum and Articles of Association to set up Pak-China Joint Investment Company were signed here on Saturday. The joint company with a paid-up capital of $200 million will be operational in August.

The paid-up capital of $200 million will be subscribed equally by two parties to promote investment, economic co-operation between the corporate sector of the two countries, including joint ventures, project financing, asset management, housing financing, investment banking and infrastructure projects.

The Memorandum and Articles of Association were signed by Chen Jianbo, managing director/vice chairman, Xia Qiang, Director and Muhammad Akram Malik, secretary, Economic Affairs Division and Iqbal Hussain, senior joint secretary (invest) on behalf of their respective sides.

The signing ceremony was witnessed by PM's Adviser on finance Dr Salman Shah and the finance secretary. The Pak-China Joint Investment Company would perform investment banking business on commercial basis to carry out activities in the financial, infrastructure, services mining, industrial manufacturing and non-manufacturing sectors. It would also increase the existing bilateral economic co-operation between the two countries and attract foreign direct investment from other friendly countries, in addition to improving the investment climate in the country.

According to the agreement, the head office of the company will be located at Islamabad. It may also establish branches, offices or agencies in Pakistan or abroad.

http://www.brecorder.com/index.php?id=595413&currPageNo=2&query=&search=&term=&supDate=
 
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Japan to help set up economic zones

LAHORE (July 22 2007): Advisor to Prime Minister on Finance Dr Salman Shah has said that the government is negotiating with the Japanese authorities to set up special economic zones in the country. "We have already signed an agreement with China for establishing such special zones and formed an investment company for execution of the project," he told reporters.

At the first investment road show on 'The Future of Online Stock Trading in Pakistan', organised by the ADK Trade and the Mediators Conferences here on Saturday. About target killings of the Chinese in Pakistan, he said: "It is right that focused terrorism continues in the country, but it will not derail economic relations of Pakistan and China.

Moreover, there is also no possibility of change in the economic commitments of the two countries towards each other. We have to change our image of extremism and, by doing so, we can become the global workshop."

About the possibility of involvement of neighbouring countries in the recent wave of terrorism in the country, Salman said it could never be ruled out, and the countries who were unhappy over Pakistan's economic growth could be behind such acts. "But, despite all this, we will continue striving to keep our growth level higher as compared to our neighbouring countries."

Earlier, at the function, he said that Pakistan's stock market had outperformed in recent years and its investment had doubled in two years. "The capitalisation of Karachi Stock Exchange has increased to around $70 billion from $30 billion in the last couple of years," he said, adding, that "what we need to do now is to get more private investment forward in the capital market."

About future of online stock trading, he said: "It looks quite promising in Pakistan since the new generation is at ease with this technology." Dr Salman said that the government's economic liberalisation and privatisation policies had unleashed the real potential of Pakistan's economy.

About the stock market crisis, he said efforts were underway to improve the surveillance of the Securities and Exchange Commission of Pakistan (SECP) to overcome this problem. Citing the 2005 crisis and the consequent ones, he said they were mainly driven by liquidity problems, resulting from the COT. To overcome such problems in the future, the regulator had replaced COT with margin financing, which was subsequently substituted by the CFS arrangement.

Giving an overview of the economic outlook, he said that Pakistan was attracting local and international investors with the government putting the country on the world map through stock market.

He said: "We are living in a global market, which means the world markets are open for us and our market is open for the whole world. When the government started thinking to float bonds in the international market we thought Pakistan should position itself among the countries having their own brands. So, when we started building our brand, we looked into the economic indicators, which were better than other countries of the region.

"We realised at that time Pakistan growth was higher than India while it was also ahead of it in terms of tax-to-GDP ratio. Similarly, Pakistan's macro economic indictors were better than India. Moreover, it was realised at that time that 50 percent of Pakistan population comprised young generation. Pakistan workforce is 4th largest in the world, which is a positive indictor and we converted that growth potential into reality. Our consumer market is also very large and our dairy sector is 5th largest sector in the world."

About the Neelum-Jhelum Valley hydro project, he said its ground-breaking ceremony would take place soon while a company to execute the project had already been formed. "When the project is completed, the company will also be listed on the stock markets of the country," he said. "As far as the law and order situation in Pakistan is concerned, it is a world-wide phenomenon, as explosions take place everywhere in the world - so if a bomb explodes in FATA - it does not affect our investment environment.

"Last year, $8.48 billion foreign investment came into Pakistan and if we concentrates on our growth, we can double this investment in next two years. Likewise, if our brand image is developed we could make a lot of progress since the world knows that our economic fundamentals are very strong. Now because of the policies of the government, Pakistan is going to become the largest manufacturing workshop in the world. However, at this time, we need to invest more on skilled labour workforce. Similarly, Pakistan's energy sector has also lot of potential and the new petroleum policy will encourage investors."

AKD Securities Deputy CEO Muhammad Farid Alam also expressed his views on Pakistan's economic outlook, saying higher industrial and agricultural growth and significant improvement of macro-economic indicators was expected to keep the stock market buoyant. AKD Securities CEO Nadeem Naqvi also spoke on the opportunities in Pakistan's capital markets for potential investors.

Lahore Stock Exchange General Manger Mian Shakeel Aslam talked about the role of stock markets in helping investors and highlighted the new reforms undertaken by the exchanges and the SECP to improve the market efficiency, transparency and governance. Talking about the concept of the Online Trading through AKD Trade, Ali Hemani, General Manager, ADK Trade, discussed the online trading system and educated the investors about the technical aspects of online trading.

http://www.brecorder.com/index.php?id=595373&currPageNo=1&query=&search=&term=&supDate=
 
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TDAP exhibition helps secure $400 million business from China

KARACHI (July 22 2007): Trade Development Authority of Pakistan (TDAP) has organised an exhibition for Chinese business delegation in Islamabad and successfully secured business worth 400 million dollars. This was stated by TDAP Chief Executive Tariq Ikram while briefing senior officials, executives and consultants of TDAP in light the of 2007-08 trade policy.

The meeting deliberated on various aspects of the textile sector, including its promotion and to achieve the 2007-08 fiscal target. The meeting also took up the issue of exploring new markets for products and holding more exhibitions to augment the trade.

Later, a delegation of rice exporters called on Tariq Ikram and discussed with him various issues on Basmati and non-Basmati rice and matters pertaining to the export of this commodity. Tariq Ikram assured the delegation that TDAP would facilitate the exporters to boost the rice trade.-PR

http://www.brecorder.com/index.php?id=595473&currPageNo=1&query=&search=&term=&supDate=
 
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Trade policy to help government strike balance in world trade: FPCCI

ISLAMABAD (July 22 2007): The Federation of Chambers of Commerce and Industry (FPCCI) has appreciated trade policy 2007-08, as a whole and hoped that it will help the government strike a balance in international trade, besides providing new openings to the exporters to increase share in the international market.

In a statement issued here. FPCCI former presidents, Tariq Sayeed and Iftikhar Ali Malik, said the government took many bold steps in the new trade policy and the private sector should take their full advantage to boost up exports.

He said the exporter have been given incentives to make entry in the new international markets.

They said the new trade policy will be instrumental in promoting new culture of display and exhibition centres in Pakistan. They said it is a global trend to promote the products through exhibition centres and it was materialised in the trade policy. Iftikhar Ali Malik said FPCCI has already taken a big step in the same direction by undertaking the project of Lahore exhibition centre.

He said Lahore exhibition centre will serve as a gateway to the Central Asia. The idea of setting up an exhibition centre in Lahore was conceived in 2001. Punjab government allocated 450 canals of land for the exhibition centre and then practical work started on the project in 2002. FPCCI is working on the project with complete consistency and its leadership believes that the exhibition and display centre will be ready in Lahore in near future. It will not only provide a platform to put industrial products on display but also encourage such activities in other parts of the country.

The government has given importance to the concept of exhibition/display centre in the trade policy and extended financial support to the associations and individual companies.

Iftikhar said the government has provided the associations/individual companies good incentives to set up display centres for promotion of their products. He suggested that the government should set up exhibition centres in other major cities. He said Lahore display centre will be a great facility for the industrial and other sectors.

http://www.brecorder.com/index.php?id=595439&currPageNo=1&query=&search=&term=&supDate=
 
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Work on five hydel power stations to start by year-end

LAHORE (July 22 2007): Construction work on five hydel power stations will commence by the end of this fiscal year, and the project will cost a total of four billion rupees, of which 80 percent funds will be met with the assistance of Asian Development Bank and the remaining to be borne by the Punjab government.

This was stated by Punjab Minister for Power Chaudhry Armghan Subhani, while presiding over a department's meeting at his office here on Saturday, according to a handout. Chief Engineer Power Muhammad Yaqoob, In-charge Reconciliation Cell Iftikhar Ahmad Randhawa, Director Technical Rahat Khan and REDP Project Manager Liaqat Ali Iqbal were also present.

The minister observed that electricity was the backbone of all development efforts, and the government was committed to facilitate the people and all national sectors in this regard. The projects will be constructed at Marala, Chianwali, Deg Outfall, Okara and Pakpattan.

Elaborating on the cost break-up of the hydro power projects, he disclosed that Rs 110.2 million would be spent on preliminary work, Rs 1.07 billion on civil works, Rs 1.37 billion for hydro mechanical equipment, Rs 142.6 million for electrical equipment, Rs 12.6 million on transmission lines, Rs 81.1 million for physical contingencies, Rs 135.2 million for engineering supervision, Rs 40.5 million for administration, audit and accounts, Rs 40.7 million for duties and taxes, Rs 133.2 million for price contingencies, Rs 110 million for feasibility study of five additional sites, Rs 169.8 million for capacity building and Rs 586.4 million for interest during construction.

http://www.brecorder.com/index.php?id=595401&currPageNo=1&query=&search=&term=&supDate=
 
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Air passenger traffic to rise 94pc in five years

KARACHI: Pakistan is expecting a jump of 94 per cent in the number of passengers using its airports from current 17 million to 33 million in next five years, The News has learnt.

It also intends to increase the number of international airlines operating in the country to 40 from 24 between 2008 and 2012, according to Civil Aviation Authority (CAA)’s five-year business plan.

The CAA has also planned to make Karachi and Lahore regional hubs for West-bound air traffic, generating from the Asia-Pacific region, by seeking investments in airport-related infrastructure of the two cities.

“Asia-Pacific countries will contribute the highest number of air passengers in the targeted period,” said a senior CAA official, who was involved in the formulation of the medium-term strategy, but requested not to be named.

“We need to convince these Asian airlines to drop their passengers here from where the western carriers could take the traffic to Europe and beyond.”

According to Boeing, the American aircraft manufacturer, airlines in the Asia-Pacific region including China, Singapore, Thailand and Malaysia had altogether ordered some 8,000 aircraft, he said.

Just past week, global airports’ organisation Airports Council International announced that a record number of passengers totaling 4.4 billion traveled in 2006 with Beijing seeing the biggest rise in passenger traffic.

The CAA believes that its airports are ideally placed in South Asia having close proximity to South East Asia, Middle East and Central Asia.

The point is substantiated by one of its comparative studies, which shows a saving of 47 minutes on Hong Kong-Karachi-Brussels route for a flight going from Hong Kong to Brussels via Dubai.

However, an even greater emphasis is on making international hubs by providing a diverse range of facilities including world-class hotels, shopping plazas and other allied infrastructure for transit passengers.

“Land is cheaper here and international airlines could use this to their advantage,” the CAA official said, explaining that setting up aviation schools and training centres in Pakistan was much more cost-effective.

He also referred to an idea of building an aviation tower in Karachi or Lahore where foreign carriers could relocate their satellite offices.

The worth of land space in and around the airports runs into billions of rupees and it was only after Farooq Rehmatullah took over as Director General CAA a serious thought was given to utilisation of dormant non-aeronautical assets of the aviation regulator.

According to a new assessment, the CAA’s non-aeronautical assets are valued at Rs177 billion against a book value of Rs17 billion.

Moreover, the CAA is eyeing increase in its revenues from current level of around Rs12 billion to Rs31 billion by 2012, a rise of 158 per cent.

http://www.thenews.com.pk/daily_detail.asp?id=65274
 
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Salman calls for faster growth rate

LAHORE: Advisor to Prime Minister on Finance, Revenue, Dr Salman Shah has said it was imperative Pakistan to grow faster from countries in the region for which it will have to improve its image if it wants to emerge as global workshop for manufacturing.

He was talking to journalists after the first investment road show on “Future of online stock trading” organized by AKD Securities.

He said the demography of Pakistan indicates that the country would have the fourth largest workforce in the world in coming years.

He stressed the need of training and capacity building of the workforce and added that it was a continuous process.

He said that the government was seriously investing in the human resource development, which was evident for the budgetary allocations of health and education.

Dr Shah said that globalisation meant marketing of markets and the government was trying to put Pakistan on the map of markets.

He said that though governments tried to protect their markets from globalisation by putting tariff and non-tariff barriers but there was no protected market in the age of globalisation.

He said, strong macro economic indicators of the country depict tremendous potential of growth and that was better than so many countries in the region, including India, China, Turkey, Indonesia and Thailand.

He pointed out that the economic liberalization and privatisation policies of the government had unleashed the real potential Pakistan’s economy, which was obvious from the recent foreign investment of $8.4 billion.

He said that the country had a huge consumer market and high rate of return, which made it an attractive investment destination.

Talking about the new initiative of the government, he told participants of the road show that a new trucking company was being established with collaboration of China and Turkey to develop the logistic infrastructure to meet the challenges of the National Trade Corridor program.

He revealed that discussions were underway with Japan to set up special economic companies.

He, however, showed concern about the present vocational training facilities in the country.

He said that capital market in the country had doubled due to investor friendly policies of the government. He said that it was the priority of the government to provide environment conducive for smooth flow of the business activity.

Lahore Stock Exchange General Manager highlighted the role of stock exchanges in facilitating investors.

http://www.thenews.com.pk/daily_detail.asp?id=65275
 
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Mango export target to exceed by 20,000 tons

ISLAMABAD, July 21: Pakistan is likely to cross the mango export target of 115,000 tons set for the current fiscal year by an additional 20,000 tons to be shipped in the next three months.

Official figures compiled by the Horticulture Development Export Board showed that Pakistan’s annual mango exports amount to around 0.1 million tons, about seven per cent of total 1.5 million tons production.

The country exported 55,000 tons of mangoes worth $16.5 million till June 30, 2007 in just 40 days of the start of the export, which constituted 50 per cent of the total export target set for the period under review.

According to the horticulture board the export target might increase by additional 20,000 tons worth $6 million this year.

The exporters said Dubai remained the top market for Pakistani mangoes by importing 27,000 tons followed by Europe, including the United Kingdom with 10,000 tons.

Pakistan exported 9,000 tons mangoes to Saudi Arabia while 7,500 tons were shipped to other Gulf countries like Oman, and Kuwait, etc. The rest 1,500 tons mangoes went to the Far Eastern countries, like Singapore and Malaysia.

According to the board a mango fair will be held in Czech Republic by end of the current month to introduce Pakistani mango and hopefully the shipment of mango to non-traditional market will start this summer.

The Czech Republic has been a big market and it would provide another destination for Pakistani fruits. Presently, the Czech market is flooded with Brazilian mangoes but it has no match with Pakistani mango in term of quality and taste.

http://www.dawn.com/2007/07/22/ebr2.htm
 
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Lufthansa announces flights from Pakistan

LAHORE: Lufthansa, a German Airline, has announced to start its flights towards Karachi and Lahore from October 2007.

An official press release by the company on Saturday announced that the company would start its service from October 28, 2007 thrice a week flights from Karachi to Lahore and Frankfurt.

Vice President sales and services Southeast Europe, Africa and Middle East, Joachim Steinback has stated Lufthansa Network would strengthen the bilateral economic relation by connecting the commercial and industrial cities of Pakistan, Middle East and Germany.

Joachim Steinback, who is also heading the strategically most important regions of Lufthansa Network, said that passengers of Pakistan and Germany would have access to the extensive route network of Lufthansa connecting through the Lufthansa hub Frankfurt to other European countries as well as to the United States.

Mr Steinbach further said, passengers would benefit from the new Lufthansa flights since the non stop connection from Pakistan to Germany would reduce travel time by up to three hours as compared to current connecting flights from gulf to Europe. He said this step of Lufthansa airline would be a great advantage for the business travellers.

Lufthansa also announced appointments for Pakistan and Mr Ian Patrick would be Lufthansa Country manger for Pakistan and Afghanistan. Mr Patrick has a long and varied airlines experience as he has experience of consulting for numerous fields of marketing, revenue enhancement and route feasibility.

http://www.dailytimes.com.pk/default.asp?page=2007\07\22\story_22-7-2007_pg5_7
 
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Pakistan launches 5-yr energy strategy

(MENAFN) The Pakistani government has announced its five-year energy policy revising upward oil and gas production prices by 6-8 percent on new discoveries, Khaleej Times reported.

The new plan, dubbed Petroleum Exploration and Production Policy 2007, will pass its impact on domestic consumers within five years, said the Pakistani Minister of Finance, adding that Pakistan has met only 20 percent of its total oil requirements from domestic sources and gas requirements were also rising with growing economy and hence the target was to maximize indigenous production of oil and gas.

He said the country was at twelfth position in 2001 in terms of petroleum activity level but slipped to sixteenth in 2006. However, India was at seventeenth position but improved its environment and secured seventh position during the same period.

http://www.menafn.com/qn_news_story_s.asp?StoryId=1093160316
 
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Punjab government urged to set up more industrial estates

LAHORE (July 23 2007): The Chairman of 'The Founders' group, Dr Khalid Javed, has said that Punjab Government decision to set up industrial estates along the Motorway is a very positive development, which will not only reduce the unemployment but will also help in bringing down the rate of crime. Addressing the office-bearers and members of Lahore Chamber of Commerce and Industry (LCCI) here on Sunday.

He said that the decision had been taken by the provincial government on the demand of 'The Founders'. He said that the government should set up industrial estates all across the country. He, however, expressed his deep concern over the law and order situation, and condemned the suicide attacks taking place in the country.

He also condemned the targeted killings of Chinese in the country and said: "China is our friend; therefore, the government must ensure the security of the Chinese workers."

He urged the government to undertake concrete steps for holding transparent elections of LCCI by issuing instructions for correcting voters' lists.

http://www.brecorder.com/index.php?id=595880&currPageNo=1&query=&search=&term=&supDate=
 
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Linking Gwadar port with rail network: Pracs given two-week deadline for feasibility

ISLAMABAD (July 23 2007): The Railway Ministry has given two weeks deadline to a concerned department - Pakistan Railways Advisory and Consultancy Services (Pracs) - for the completion of a feasibility study to link Gwadar deep sea port with country's main rail network.

The Pakistan Railways Advisory and Consultancy Services is undertaking the feasibility study of the project that is already well behind its schedule.

Sources in the Railway Ministry told Business Recorder that Pracs has been asked to 'seriously' accomplish the feasibility study of the Gwadar port within no time.

"The project is already behind its schedule... we have asked the Pakistan Railways Advisory and Consultancy Services to submit the complete feasibility study as soon as they can," a senior official told this correspondent. The government plans to construct a new railway line connecting Gwadar with the main network at Quetta-Kohi-Taftan section.

To this affect, the feasibility study was scheduled to be completed early last year but delayed due to security problems in Balochistan and some other administrative issues.

The government, earlier, had finalised a feasibility report worth Rs 70.63 billion to connect Gwadar port with the main railway network. The Railway Constructions Pakistan Limited (Railcop) - a subsidiary of Pakistan Railways - had prepared the feasibility report of the mega project. Later on, the government decided to conduct a fresh feasibility study of the rail link, as the first one was too inflated.

The task, then, was assigned to Pakistan Railways Advisory and Consultancy Services which is yet to submit the detailed feasibility report. "It (Pracs) has undertaken the feasibility study of most parts of the proposed project but there are some tracks still left," the official added.

"We are trying to put in place a comprehensive railway network that would in future connect Pakistan with neighbouring countries to promote economic activities in the region," he maintained. The government has so far failed to establish communication links to connect multi-billion dollar Gwadar port with country's main network.

http://www.brecorder.com/index.php?id=595842&currPageNo=1&query=&search=&term=&supDate=
 
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JETRO assures Japan's cooperation for Karachi mega projects

KARACHI: July 23, 2007. Nazim Karachi Syed Mustafa Kamal has said that Ministry of Railways has completed preparations with regard to Karachi Circular Railway and Japan Government has been asked to start work on the project at the earliest while JETRO has also finalized its preparations.

He said it is an important and inevitable project for Karachi and its completion would help provide modern and comfortable commuting facilities.

He was talking to JETRO's new country director Minoru Uga who had an introductory meeting with him along with outgoing country director Hiro Miakwa and JETRO expert Kokyo Kenny Tamaki here on Monday.

"We are thankful to Government of Japan and Japanese companies for joining us in important projects for Karachi with KCR and Steel bridges being on the top", Mustafa Kamal said.

He assured that Japanese companies would be fully encouraged for their investment in mega projects and all cooperation will be extended to them.

JTRO Country Director appreciated the Nazim's vision for fastest development plans, particularly flyovers, underpasses and other mega projects and said that Karachi would soon become world's modern and beautiful city. He assured of all cooperation of JETRO in this regard.

Brecorder.com
 
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Will the trade policy achieve export target?

It seems that the trade policy 2007-08 is intended to be unveiled in two phases. Apart from the policy announced on Wednesday last, the market believes that the government may come out with an export strategy for textiles in next one to two weeks.

“The policy outlines a strategy for only 35 per cent of the $19.2 billion proposed export target for 2007-08,'' said Fawad Ejaz, a representative of the leather industry while offering his comment on the new policy.

Fawad is bitter because the proposal about the six per cent research and development rebate on the export of leather garments has been put off indefinitely by the Economic Coordination Committee of the Cabinet held last month. The same meeting is stated to have adopted an incentive package for the textiles.

The Federal Commerce Minister Humayun Akhtar had moved the proposal about six per cent R and D rebate for leather garments export along with readymade garments at an ECC meeting two years ago. In 2005, the ECC had decided to offer six per cent rebate on readymade garments which was expected to continue till 2009. However, the same incentive was not approved for leather garments. The commerce minister did not attend the ECC meeting last month.

“In 2006-07, leather garment exports were down by more than 24 per cent,'' Fawad disclosed saying that the R and D rebate was offered to footwear early this year but it was too late. Hence it failed to show an improvement in export performance.

Unlike the previous years, the chairman of the Export Promotion Bureau did not invite leaders of export associations for discussing problems pertaining to fiscal, banking, logistics etc and working out sector-wise export targets for fiscal 2008. The chairman of the recently formed Trade Development Authority of Pakistan (TDAP) did not talk to exporters. “We are not aware as to how much we are expected to export this year'', a leather garment exporter said

There are many irritants which could have been addressed had there been pre-policy consultations. For example, exporters are allowed 100 samples every year for their buyers abroad. They want their ceiling fixed according to the ratio of their business volume. Big exporters have a large buyers' base and need to send more samples.

Carpet manufacturers and exporters are also upset over an import provision about semi-finished carpets for which an SRO has been issued. Yacoob Salehji, a leader of carpet industry has sent a protest note to the government stating that the decision has dealt a crippling blow to domestic labour-intensive carpet-making employing 1.2 million people. More than 60 per cent running cost of the industry goes towards labour charges. He fears that some businessmen might import semi-finished carpets from India, Nepal or China.

Exporters have also reservations about certain aspects of the Export Credit Guarantee Scheme which have made it almost impractical. Exporters say, about 20 per cent of the exports (about $3.5 to $4 billion) are supplied on credit for which they need insurance cover and cash flow to maintain liquidity.

It seems there is a built-in conflict within the government as to how to go about the international trade. The commerce ministry's performance is judged by the improvement in exports and prudence in imports. Imports are expected to serve domestic industry to produce export surplus and meet local market demands. But the finance ministry's sole objective is to generate revenue In 2006-07, the finance minister collected a record Rs841 billion taxes and duties. It has set a target of Rs1,025 billion tax collection in the current fiscal year. Import is one source on which the finance ministry relies heavily to collect as much as 43 per cent of taxes---import duty, sales tax and presumptive income tax. In 2006-07, the government collected more than Rs351 billion from imports. This heavy burden of taxes tend to cripple the industries. While commenting on sluggish export growth last year, the commerce minister in his policy speech on Wednesday pointed out that, ``the declining growth trend in the large scale manufacturing sector during 2006-07 from 10.7 to 8.8 per cent reduced our exportable surpluses''. Even this growth of 8.8 per cent came from imported-oriented auto and electronic industry for which the demand was created by the liberal bank loans. The consumer loaning now constitutes almost 20 per cent of the total bank loans portfolio. The revival of Pakistan Steel driven by price spiral of steel products also contributed to 8.8 per cent growth. But the export-oriented industries failed to come up to the expectations and the exports trailed behind the annual target.

In the current year too, the prime minister was a bit more optimistic while suggesting a $20 billion export target. But the commerce minister was somewhat cautious who wanted it to be less than $19 billion. The government finally settled it at $19.2 billion.

The policy for 2007-08 offers long-term facilitation and vision to the exporters. But the commerce ministry appears to be beset with limitation of funds. It has only two sources for funds at its disposal. One is the Export Development Fund and the other is Export Market Development Fund. The strategy to upgrade skills, production capacities, marketing capabilities, designing , exhibition etc. need a lot of money. Exporters have been given the incentives to obtain certification, open their offices abroad, development of branding.

But all said and done, exports are under the severe impact of high manufacturing cost mainly coming from inflationary trends, high interest rates, high utility tariffs and a miserable infrastructure.

http://www.dawn.com/2007/07/23/ebr1.htm
 
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Fundamentals for improving cotton crop

By Dr Shahzad M.A. Basra, Hassan Munir & M. Tariq Javed

DESPITE being one of the leading cotton producers, Pakistan ranks 13th in the world in the yield per acre. As a result, around 1.5 to 2.00 million bales of cotton are imported annually to meet the demand of the domestic textile industry, contributing 60 per cent of the export earnings. Therefore, it is necessary to increase the per acre yield.

There are a number of strategies to increase the yield and to reduce cost of production. These include efforts to minimise high temperature effects on cotton crop as well as for optimum crop stand to maximise yield. Every cotton grower is making efforts for better yield as it offers a lot of economic benefits.

Useful cotton textile products include terrycloth, used to make highly absorbent bath towels and robes, denim to make blue jeans, chambray used in the manufacture of blue work shirts (from which we get the term “blue –collar”), corduroy, seersucker, and cotton twill. Socks, underwear, and most T-shirts are made from cotton. Bed sheets are usually made of cotton. Cotton yarn is used in crochet and knitting.

Fabric can also be made from recycled or recovered cotton. While many fabrics are made completely of cotton, some are made with materials blended with cotton as well as with other fibres, including rayon and synthetic fibres such as polyester.

In addition to the textile industry, cotton is used in making fishnets, coffee filters, tents and in bookbinding. The first Chinese paper was made of cotton fibre. Fire hoses were once made of cotton. Cotton hulls are used for fertiliser, fuel, and packing. The cottonseed is used to produce cottonseed oil, which after refining is used by human beings. The cottonseed meal is generally fed to livestock.

Successful cultivation of cotton requires a long growing season, plenty of sunshine and water during its period of growth, and dry weather for harvest. In general, these conditions are met within tropical and warm subtropical areas. Production of cotton crop for a given year usually starts soon after harvesting the preceding autumn. Planting time is between April and June ..

A "good stand" refers to the number of healthy, vigorous seedlings that are evenly distributed in the field. This may be two to four plants per foot of row depending on soil type, row width, planting date, and moisture during the growing season. Getting a stand requires proper seedbed preparation, favourable soil temperature, proper planting depth, adequate soil moisture, high quality seed, avoiding chemical injury and protecting the plants from high winds, blowing sand, insects and diseases.

Seed quality should be the top most concern of the cultivator. Poor seed is the primary cause of stand failure. Emerging seedlings are poorly equipped to withstand the challenges of diseases, insects, wind, and weather, including moisture stress and heat stress.

Only such seeds should be sown which have a cool-warm vigour index of 155 or higher. The vigour index is obtained by combining the warm germination test percentage with the cool germination test percentage. Under favourable conditions, emergence of seedlings can occur in four to five days after planting. Emergence will take longer if seed are planted in cool soils. Temperatures below 60°F are detrimental to germination, emergence, and seedling growth. During the first 60 to 100 hours of germination, the radical tip is easily damaged by chilling, lack of oxygen in the soil, or too much moisture. If the tip is killed, a shallow system of secondary roots develop that makes the plant more subject to moisture stress latter in the season.

For better germination and enhanced vigour, better quality seed is the pre-requisite. Under normal soil conditions, simple soaking of seed in water before sowing will serve the purpose. Experiments have shown that primed seeds emerged faster and grew more vigorously. They also flowered earlier (very important in drought-prone areas), matured earlier and gave higher yields.

Deterioration of cotton seed during storage is another problem. During storage various seed-born micro-organisms damage the seed. As a result the seed loses viability and germination capacity. In this scenario seed invigoration techniques offer a new hope.

At present, seed-priming has been commercially used to eliminate or greatly reduce the amount of seed-borne fungi and bacteria. Organisms such as Xanthomonas campestris in canola and cotton seeds and Septoria in celery have been shown to be eliminated within seed lots as a by-product of priming. In the case of Xanthomonas campestris in cotton, zero infection in 50,000 seeds is commonly reported. The mechanisms responsible for eradication may be linked to the water potentials that seeds are exposed to during priming, differential sensitivity to priming salts, and/or differential sensitivity to oxygen concentrations.

Cotton plant is highly sensitive to high temperature. It dries out, becomes hard and brittle and loses all elasticity at temperatures above 35°C. Extended exposure to light causes similar problems. A temperature range of 35°C to 45°C is the optimal range for fungus development. Because of high temperature these problems are frequently observed in cotton growing areas of southern Punjab and parts of Sindh.

The ideal daytime temperature for cotton production is 82 degrees Fahrenheit. In Multan and other cotton-producing areas, daytime temperatures often exceed 100 degrees Fahrenheit. Plant physiologists are of the view that high temperatures can adversely affect the function of plant enzymes, resulting in impaired photosynthesis and reduced yields of cotton as well as other crops.

To overcome high temperature problem in cotton, research activities are in progress at the University of Agriculture, Faisalabad, to address the high temperature as well as poor crop stand problem in cotton crop. However, due to some obstacles, collaboration with other leading national institutes like Pakistan Atomic Energy Commission (PAEC), Islamabad, National Institute for Biotechnology and Genetic Engineering (NIBGE) and Nuclear Institute of Agriculture and Biology (NIAB), Faisalabad, Central Cotton Research Institute (CCRI), Multan, and National Centre of Excellence in Molecular Biology (NCEMB) at Punjab University, Lahore, is need of the time.

Authorities should pay attention for developing this collaboration and should also encourage these research efforts for better outcomes. This is the only way by which we can play our role in improving cotton production and increasing the crop yield in the country.

http://www.dawn.com/2007/07/23/ebr4.htm
 
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