Pakistan Economy - News & Updates - Archive

[Neo]

Sustainable agriculture in rain-fed areas​

THE rain-fed agriculture is an enterprise of high risks and is exposed to many soil and environmental threats. The sustainability of rain-fed agriculture is, in fact, management of risks involved in cultivation and that should be the focal point of policy makers, knowledge imparting institutions and ultimately the farming community.

Taking this sustainability aspect in perspective of Pakistan agriculture, 67 per cent population lives in rural areas (1998, Census of Pakistan), with insufficient food of low quality and natural resources being exploited ruthlessly.

How best the rain-fed areas are used and at the same time sustain productivity is really a big challenge. Out of 79.6 million hectares the total area of Pakistan, 22.1 million hectares is cultivated (Agricultural Statistics of Pakistan, 2006). The three-fourth of the cultivated area is irrigated and one quarter is rain-fed (Barani). The rainfall in Pakistan is highly variable and is recorded as low as 10 mm in hot deserts of Cholistan and Thar to as high as 1500 mm per annum in foothill of Himalayas.

The farming in dry land areas is subjected to soil erosion, degradation of vegetation cover, desertification, low crop productivity, substandard livestock and poor farm management and consequently low economic return to farming community.

Because of these constraints and risks involved in rain-fed agriculture, till recent past the main focus was on irrigated agriculture, and rain-fed agriculture was neglected. However, the barani areas are such a vast and valuable resource that it was not possible to ignore these rain-fed areas any more. Dry land areas sustain 80 per cent of livestock, contribute to 12 per cent wheat, 23 per cent rapeseed and mustard, 53 per cent barley, 65 per cent gram, 69 per cent sorghum and 89 per cent groundnut. As such rain-fed areas offer hope of sustainable agriculture.

Keeping in view the significance of Barani areas, the Barani Commission was constituted to explore the possibility of development of rain-fed areas. The commission in its report in 1976 emphasised the need of trained manpower, problem-orientated research and measures to devise ways and means for uplift of the poor rural masses in rain-fed region.

The soils in rain-fed areas are subjected to water erosion and wind erosion to varying degree. Out of total water erosion area of 11.17 million hectares, 1.9 million, .0059 million, 6.57 million and 2.63 million hectares are affected in Punjab, Sindh, NWFP inclusive of northern areas and Balochistan, respectively. Out of this eroded area only 0.398 million hectares are affected by sheet and slight rill erosion, while remaining area is moderately to severely affected by rill and gully erosion.

In Potohar region during intense rain Kohan, Bhanu, Kansi, Sowan and Harrow rivers take away huge sediments rendering 12,000 to 30,000 acres arable land unsuitable for cultivation every year (Barani Commission report, 1976). In high rainfall areas water erosion predominates, while in low rainfall areas wind erosion is main impediment to sustainable agriculture. The total area affected by wind erosion is 4.7 million hectares. The area affected by wind erosion in Punjab, Sindh, Balochistan and the NWFP is 3.8 million, 0.64 million, 0.28 million and 36,000 hectares, respectively.

This is evident from data of water and wind erosion, that water erosion is most predominant in NWFP, while reverse statement is valid in case of wind erosion. An area of 2.6 million, 0.49 million and 1.6 million hectares are slightly, moderately and severely affected by wind erosion. The rain-fed areas are susceptible to water and wind erosion and need proper management practices. The soil is a natural resource of immense significance and should be utilised in a way that quality of soil is not degraded.

The soil and water resources need to be conserved to ensure sustainability of rain-fed agriculture. The soil eroded by water is conserved by integration of cultural practices, vegetation measures and engineering techniques. The cultural practices include deep ploughing, conservation tillage and furrow cultivation. The crops that fit the rainfall pattern may be cultivated. The pasture may be established on marginal lands. The vegetation cover is the first defence against erosion and run off and must be adopted earnestly.

The soil in rain-fed area is usually uneven, with variable degree of slope. The local word Potohar means, undulating and uneven. The levelling of such lands may not be feasible and costly as well, the soil is to be managed in situ or as it is, hence terracing and contour practices may be adopted. The engineering measure may be temporary or permanent in nature. The water ways, spill ways, drainage ways and diversion channels are constructed to control run off water and conserve the soil. The permanent engineering work involves masonry work, the check dam and retaining walls are constructed to plug the gully. The gully may be plugged by vegetation cover.

The flowing silt is arrested and gully is plugged over time. The principles of wind erosion control are four folds; protect the soil surface with cover preferably vegetation cover, may be grasses, roughen the soil surface to slow down wind velocity and trap drifting soil, produce stable soil aggregates to resist force of wind and install wind barrier, by growing trees, shrubs and tall growing crops. The application of soil stabilisers/soil conditioners may prevent wind erosion, but these chemicals should be cost effective. The top down soil conservation approach need to be replaced with bottom up approach that suit the farmer’s convictions and resources.

Moisture is most limiting factors in crop husbandry in dry land areas and each and every drop of water is to be conserved for successful crop production. The rain-fed agriculture depends on how to capture rainfall and make efficient use of rain water. During intense rainfall the runoff of water is quite common, and occurs as a rule rather than exception, specifically in soils with low infiltration induced by soil compaction and crust formation. The runoff water takes the top fertile soil away, leaving the soil barren for plant growth.

The conservation of water is important for productive rain-fed agriculture and is accomplished by appropriate tillage, soil mulching, and application of crop residues as cover on soil surface to eliminate evaporation losses, vegetation and crop cover and adoption of cultivation techniques such as terracing, ridges and contour practices. The conservation of water is essential in all rain-fed area, but more so in dry areas. In arid regions with rainfall less than 250mm, the farmers must be conversant with the technology of conservation of all available water.

In order to conserve adequate water, sub-soiling, chiselling and deep tillage is practiced. In this way more water infiltrate into the soil and more root penetration occur that has access to more water over a large area. The success of crop production in rain-fed area is directly related to quantity of water conserved in soil, Hence bunds or check border should be erected around the field, the field may be deep ploughed, so that maximum rain water can infiltrate into the soil and is conserved for the next crop. Water harvesting is essential for rain-fed agriculture. Water harvesting is collection and storage of precipitation, the rain water. The risk involved in rain-fed agriculture is minimised by proper water harvesting, water harvesting in an area may be 20-90 per cent of precipitation received in that area depending on slope, intensity of rainfall and soil characteristics.

The Cholistan desert in Punjab and the Thar desert in Sindh are dependent on rain water. The inhabitant of these deserts had been using water harvesting techniques since distant past. The water harvesting techniques are site specific and most appropriate one must be adopted in a locality under consideration.

In rain-fed areas there is a great scope of runoff agriculture. The rainwater is taken away by runoff to other areas, where it is stored and used for crop production. The runoff takes place in upper part of catchments and is collected at lower part of it. In water harvesting at other places infiltration in reduced at original site and as such runoff is increased for more water harvest on adjacent areas. The runoff is accelerated by vegetation removal and soil compaction. The area is also treated with chemical soil sealant and water repellent materials in order to increase runoff. The farmers in Cholistan in Punjab and Thar in Sindh collect rainwater in depression called Tarries. The shape and size of such rainwater reservoir depend on size of catchments and type of soil in a locality. The farmers also store water in underground tanks locally known as Tonka, that are made by hard clay.

In underground tanks, water loss by evaporation practically does not occur. The shallow well upto the depth of 20m are also dug in depression, where rainwater is collected in sufficient quantity. These dug well are recharged by percolating water in soil. Farm tank or pond is another method of water harvesting. The pond may be excavated in existing depression of the farm and soil so obtained may be used for embankment. The pond may be made impermeable by use of chemical sealants and soil cover such as wax and asphalt that will minimise water loss. The pond may be sealed with local available material to check seepage, covered to control evaporation and designed to prevent silting. With improved practices in catchments it is feasible, to harvest water as low as 10 mm rainfall.

The flood water harvesting, snow harvesting and dew harvesting are other resources of harvesting that deserve attention. In Dera Ghazi Khan District of Punjab, and in Balochistan hill ******** occur. The rainfall is received in short intense storm in form of flood. This flowing water should be spread over adjacent plains for crop production, range and pasture improvement. The water resources are scarce and will be more acute in future, because of the gap between demand and supply. Hence water needs to be conserved/harvested efficiently for optimum crop production.

No plan for uplift of farming community can be useful, unless farmers are actively involved in that activity, so is the case with water harvesting. The participatory approach involving stack holders to take part in water harvesting to conserve / harvest every drop of water is essential. The local people should be provided technical know how and financial assistance for construction and development of rainwater harvesting system in the respective region.

In successful crop production under rain-fed conditions, there are two options, either conserve/harvest enough water for optimum plant growth or grow crops that have minimum water requirements and give more yield with less water. The crops with low water requirements and high water use efficiency are to be propagated in rain-fed areas.

The crop species selected should be such that fit the rainfall pattern. Integrated farming system is appropriate for all levels of technologies from subsistence farming to large, highly technical commercial farming enterprises, The crop plants that can tolerate heat and resist drought / stress environment, yet had acceptable productivity and contribute to economic stability by reducing risks involved in rain-fed agriculture, are to be propagated. The conventional crops are to be supplemented with high value fruits and vegetable crops or agro-forestry, olive, saffron, salicornia and sea buckthorn cultivation may be other alternatives, depending on land capability classes.

The soils in rain-fed areas are usually class III and IV land capability class and had moderate to severe limitation for general crop production and deserve appropriate management practices. Vitiver grass known as Khus Khus is effective in soil and water conservation and may be adopted in suitable localities. The appropriate moisture conservation/water harvesting will ensure water availability to crops sown in rain-fed region.

The water available in dry areas may be utilised by highly efficient and effective irrigation techniques such as drip or sprinkler irrigation for successful crop production in rain-fed areas.

http://www.dawn.com/2007/07/23/ebr3.htm

 

[Neo]

Risks to Mirani dam’s viability​

The worst affected from the recent rains and flashfloods are the people of Nasirabad in Turbat district. Most people hold technical flaws in the Mirani dam’s design responsible for the devastation of the area. The Rs5.8 billion Mirani dam project is designed to irrigate about 33,000 acres. However, its commissioning has already destroyed thousands of acres of cultivated land with 18 tube wells, five `karizes’ and many other irrigation infrastructures.

Many believe the design of the spillway needs to be redesigned as there is no provision for a flood gate and the outlet exists in the form of the sole spillway with a very limited capacity. The original project design had shown the reservoir on 6,000 acres and the fields which were at an elevation of 30 feet were depicted as being under water, while those at a depression of 30 feet as outside the reservoir area.

According to experts and local communities, a population of 50,000 will be affected in the upstream of Dasht River as a result of the storing floodwater in the dam. A majority of the population of Nasirabad, Nodiz and Kalatuk will be inundated once the water is stored in the dam to its full capacity. Official sources say that the project will not have any major adverse environmental effect in the reservoir area. About 1,100 people will need resettlement and about 4,800 acres of flood-irrigated area will be submerged. Based on market value of land and replacement value of facilities, sufficient provision has been made for covering the cost of compensation of the reservoir area.

Mirani dam will have the capacity to store 150,000 acres feet of water with its only spillway at 80 feet. The total height of the dam is planned to be 127 feet. The first feasibility report of the project was completed decades back in 1956. The 1956 survey showed the dam height at 80 feet instead of the 127 feet now planned.

Some political circles have demanded that the height of Mirani Dam be reduced by at least 10 feet in order to mitigate its adverse effects on the people in upstream and downstream areas. Ironically, the government has now planned to increase the height of Mirani Dam by another 20 feet that would also increase the cost of the resettlement plan.

Mirani Dam has been constructed on Dasht River, 43 km south west of Turbat City for irrigation purpose. Turbat is situated on the left bank of Kech stream. The 127 ft-high, 3,350 ft-long, earth-filled dam will create a reservoir, which will extend to about 10 miles upstream of the dam. It will have a designed capacity of 377 cusecs. The local people fear that as a result of the dam, two union councils, Noodaz and Nasirabad, will be inundated. According to the official sources, only some parts of the union councils will be inundated forcing only a few people to migrate.

The construction of Mirani dam has not been without its social and environmental costs. The command area has been affected for the upper riparian, which included resettlement and land acquisition, as well as for the lower riparian, which meant water rights, etc. Besides depleting the productive agricultural land, there will be manifold impacts on the local community, a cross section of income levels, living resources and living standards which would give rise to multi-dimensional socio-economic problems.

The critics say that the study conducted by Nespak remained silent on the resettlement action plan and was more biased towards the lower riparian which forced Wapda to address various aspects relating to the affected population and their resettlement. A Rs1.84 billion resettlement action plan (RAP) was recently approved for Mirani Dam project. National Rural Support Programme (NRSP) was appointed as third party to re-asses the cost of land, buildings and trees under the compensation package. Last month, Water and Power Development Authority (Wapda) abruptly increased the cost of date plants inundated by the dam from originally proposed Rs3000 to Rs20,000 per plant. The initiative is under consideration of NRSP that will send the final report to the Executive Committee of the National Economic Council (Ecnec), which is to approve the Resettlement Action Plan for the dam.

The local people complain that compensation provided so far is not appropriate, as land in Gwadar is costlier than any district in the province due to the construction of deep-sea port. In the case of Sabakzai Dam in Zhob district, the affected people received compensation over Rs43,000 per acre, while the Mirani Dam victims were paid Rs15,000--20,000 per acre. The total area which will be submerged under the reservoir at 244 ft is about 17,982 acres. It also includes resettlement and compensation for houses between the canal command area and the lower riparian area of the river's reach 235 miles downstream up to Jiwani. Out of the total of 17,982 acres of land, the affected people of 7,669 acres have already been paid compensation, whereas the affected people of the remaining area, which is 10,313 acres, are yet to be compensated.

The revised settlement plan by Wapda sought Rs741 million more from the federal government.. Wapda needed funds for the compensation of land, housing, infrastructure and other required facilities to the affected population.

http://www.dawn.com/2007/07/23/ebr7.htm

 

[Neo]

Mega projects: gainers and losers​

Many countries are currently assessing benefits of mega projects so that the advantages and disadvantages of such ventures are made clearly visible. For Pakistan, such a review becomes all the more necessary because billions of dollars have been spent or misspent by successive governments for mega development projects, aimed at alleviating poverty but the outcome have been downright grim.

Barrages, dams and outfall drains have been constructed presumably to benefit people, but they are worse off with more and more people being forced into poverty. Foreign money for mega projects has gone into making some new rich among big bureaucrats, consultants and contractors.

On the other hand, the entire communities in Sindh and Balochistan – a region blessed by nature with rivers, bountiful lakes, large tracks of fertile land, orchids, forests, animal and bird habitats, wetlands, coast and gas and oil reservoirs –face a dire situation. These are hard time for peasants, fishermen, craftsmen and herdsmen of the two provinces. Their means of livelihood have been destroyed, degraded and over-exploited in the name of development.With terminal drought, rising poverty and widespread unemployment, more and more people than ever before have been marginalised.

Official economists may or may not have a good grasp of the dimensions of problems ranging from poverty in rural areas to breakdown of social values, but they have altogether ignored the destruction wrought by mega projects on natural livelihood on which people depended for a living for centuries.

“Dams, barrages and overexploitation of water resources have taken a toll on people and biodiversity as rivers have dried up, lakes poisoned and fertile lands saline,” says Dadu-based writer Aziz Ranjhani. It is not the lack of assets but the destruction and over-exploitation of assets which has caused so much poverty.

According to some figures, out of two people one is extremely poor, who according to the World Bank, can’t eat three times a day or even twice a day, drink clean water, wear new clothes, or participate in social get together . In the words of the WHO, he is chronically under-nourished too.

Thus every poverty-stricken person is striving hard to meet basic human needs like shelter, food, clothes, education and medical.

“Manchhar, the largest fresh-water levee in Asia, is dying a painful death. The dumping of effluents is threatening its ecosystem,” says historian and writer Professor Aziz Kingrani.

The destruction of natural assets has created problems like the breakdown of social values, vanishing culture and profound moral degradation.

How can the government reduce the number of mal-nourished people since two million acres land in Thatta and Badin districts have been swallowed by the sea?

How can you raise per capita income of peasants whose assets have disappeared as a result of government policies-- and fishermen whose natural aquatic resource like the Manchhar lake and the Hamal lake have been made poisonous?

According to Prof Kingrani and Mr Ranjhani dams and outfall drains have permanently rendered two million acres of land barren and millions of people have been dispossessed. The coastal Sindh and Balochistan have been brought to the brink of ecological destruction.

Prof Kingrani and Mr Ranjhani said the dumping of excessive water into the Manchhar lake has brought the entire socio-cultural set up of Mohanas (the fisherman) on the verge of extinction.

Prof Kingrani said the conversion of the sweet-water lake into the saline water has reduced the fish catch from 70 to 80 tonns daily to three maunds (80 to 120 kg) daily.

“It is a battle for the survival for the impoverished fishermen,” they said.

Writer of many dramas on social problems and articles on cultural heritage, Professor Kingrani told Dawn on telephone that: “The entire Manchhar area is sight of malnourished children, men and sick women trying to make a living on dwindling fish stocks”. Almost 80 per cent of women and children suffered from one disease or the other. About 50,000 people had migrated from the Manchhar area to settle in other parts of the province.

Larkana-based social activist and chairman of the Earth Lovers Society, Mr Zulfikar Rajper, said the first right of people on their natural resources of livelihood must be rcognised.

A writer of three books in Sindhi, one on the degradation of Hamal Lake, Mr Rajper says if the Sindh’s rivers, delta and lakes were not rehabilitated, the communities depending on them for their livelihood would face starvation.

“Saline water being dumped into Hamal and Manchhar lakes has not only disturbed the economy but destroyed the cultural heritage,” says Prof Mukhtiar Samo of the Larkana Knowledge Centre.

“Thousands of people and large herds of wildlife depended on resources of the erstwhile life-sustaining and sweet-water Hamal lake and forest surrounding it, but these are being destroyed,” says Mr Rajper.

“The Hamal lake has expanded 150 kilometres long and 60 kilometres wide due to discharge of poisonous water inundating several villages and natural habitat of wildlife,” he added..

Mr Rajper said that about 30 years ago the Hamal lake used to be a large pond of sweet and potable water from where people of the area not only drank water but irrigated their agricultural lands also.

“There was forest-like thick tree plantation along the lake which served as a sanctuary for the wildlife,” he said.

The migratory birds from Siberia would flock in thousands to find a cosy living here during winter.

“Before being turned into poisonous lake by the saline water and effluent of Balochistan brought by Heeraldin Drain into it, the Hamal Lake was a hub of economic activities.”

“People of the Kachho (lap of the mountain), as the area is called, converged at the banks of the lake during their leisure time and enjoyed themselves of the fresh air, watery environment and hectic activities of the fishermen in the water,” said Prof Samo.

The lake was teeming with the fish and fishermen always were seen sailing in the boats on its surface here and there for catching the fish.

“But all these are the stories of bygone times. Now the lake has lost it’s all past splendour and glory due to the step-motherly treatment of the authorities,” says Samo.

He said that the main Nara valley (MNV) drain carries the water of Hamal Lake to the Manchhar as such impure water of Hamal affects the water of Manchhar Lake.

http://www.dawn.com/2007/07/23/ebr8.htm

 

[Neo]

Need for an energy conservation policy​

By Sultan Ahmad

A sharp rise in power demand by 10 to 12 per cent against an average eight per cent decline in electricity generation has resulted in an acute power shortage in the country, particularly in Karachi. Making the situation worse is the frequent breakdowns in supply of power together with abnormal load sheddings.

One making the other worse, and when the power breakdown disrupts the supply of water, the riots occur and the people come out on the streets to destroy the Kesc properties.

The crisis is the outcome of the complacency of the Wapda and the Kesc bosses. They hope that somehow power production will increase or the people will put up with the shortages as before. When they try to tackle the problem, their approach is more dogmatic than pragmatic. Above all, they do not have the large funds needed to invest on new projects.

But now with the oil prices touching nearly $80 a-barrel and Pakistan’s oil import bill exceeding $8.6 billion, there is no place for complacency or a dogmatic approach to the problem. Those who forecast that oil will rise to $100 a-barrel may soon come true. And that would land the non-oil producing Asian countries into a lot of trouble.

But now realism has begun to dawn on officials and there are significant policy changes. The week began with a strong call by the standing committee of the Senate on water and power for adequate measures to increase power and gas supplies.

A new petroleum policy, approved by the Economic Coordination Committee of the Cabinet (ECC) presided over by Prime Minister Shaukat Aziz, provides various incentives to the earnest explorers and producers of oil and gas. Petroleum Secretary Ahmed Waqar has said that it was more realistic and helpful to the gas and oil producers. He said the country now produced 70,000 barrels of oil a-day which was 20 per cent of its requirement and four billion cubic feet of gas.

He said the fruits of the new policy would be visible after five years but in the mean time price of gas would go up in the country.

Five years is a long time, but then oil exploration has been very slow and the OGRA on its part has said the petroleum policy 2000 is unrealistic and wants that it to be scrapped in favour of the 1994 policy.

Development of the Thar coal is to receive attention of higher degree. President Musharraf is presiding over a high-level conference this week. The federal government has set up a new Thar coal company. A private sector company has also been set up by Hasan Associates. More private sector companies are expected to come up following the presidential initiative and the large area over which the Thar coal is spread, making it one of the largest coal mines in the world. If the Thar coal can substitute imported oil for power production it will be of great help to the country.

The government has come up with additional incentives to an alternate energy development company. Other companies in the field are bound to seek the same favour which cannot be denied. In fact alternative energy demands needs stronger support than it has been given.

Pakistan, Iran and India have eventually agreed on a pricing formula for Iranian gas which was a tough exercise. The formal agreement is expected to be signed soon and the work on the project would follow. The Japanese pattern has been adopted for the pricing formula. It has also been made clear that gas will not be available to new private sector power companies.

But what will happen after the Iranian gas becomes available here by 2011 or earlier? That can surely be used for power production instead of imported oil. The situation in respect of the use of Iranian gas for power production should be made clear by the government.

The government has raised the rates for three private sector power producers. There terms were signed when oil prices were very low, but they are now close to $80 a-barrel. Other private producers of power would want an increase in their rates also. Their legitimate demands should be met so that they invest more on power production. If that is not done they may not use their capacity to produce more power.

Exploration licences are being given more liberally than before, but they will now be scrutinised to separate the genuine from the others. Last year, the OGDC was charged to explore 100 wells in a year but they explored under 50. The target and the performance should be close to each other.

More offshore drilling licences are being issued. Some reputed foreign companies are in the field with local explorers. Their endeavours have not been very rewarding so far. If Bombay High can find oil, Karachi cannot be too far for too long. The General Electric Company of Britain has a joint venture with Wapda at Sheikhupura producing 150 MW of power and that is to be expanded now by 100 MW.

The privatisation of PSO has been delayed because of popular opposition to privatising heavily profitable companies.

The World Bank is dissatisfied with the progress of power sector reforms. In particular it deplores the delay in devolution of authority to the 12 distribution units of Wapda. The government had agreed to it, but Wapda is not willing to transfer a share of the authority to its distribution units. The Asian Development Bank agrees with the World Bank.

The ADB is also coming up with a 20-year special fund to finance the country’s development programme. Let us hope the fund will be large enough to accommodate the power sector needs.

While all this is being said about the production and distribution of power, little is said or done about conservation of energy. The waste of energy is as usual on the occasion of weddings with heavy illuminations. There is a great deal of scope in the reduction of consumption, and waste of power. But the leaders and top officials are in the lead in the exhibitionistic waste of power. Now it is feared that more production could mean larger waste of power.

http://www.dawn.com/2007/07/23/ebr14.htm

 

[Neo]

Sale of 68 percent Saudi Pak shares gets the nod from SBP: Shaukat Tarin-led consortium successful bidder ​

KARACHI (July 24 2007): The State Bank of Pakistan (SBP) on Monday approved the sale of 68 percent shares of Saudi Pak Bank, which is owned by the governments of Pakistan and Saudi Arabia, for $180.5 million to a consortium led by renowned Pakistani banker Shaukat Tarin.

The central bank conveyed its approval to the sellers who had sought its permission upon receipt of four offers last month. The bank did not reportedly approve the bid of Najeeb Saurez of Orascom (Mobilink) for its being a non-regulated financial institution.

The second bid, which was made by Commercial Bank of Kuwait, was not forwarded by the co-advisors to the sale as the buyer was not willing to match the commercial terms.

The third offer came from Tarin-led consortium, which includes Actis (UK), Nomura (Japan) and an Omani banking entity. The consortium expressed its willingness to match the price offer at Rs 32 per share of the highest bidder along with the commercial terms. At Rs 32 per share, the price is four times its book value.

The fourth offer was made by KASB, but it did not find favour for lack of details the advisors to the issue had sought. The share price of Saudi Pak Bank settled at Rs 27.30 on Karachi Stock Exchange by the close of Monday's trading session.

http://www.brecorder.com/index.php?id=596059&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Textile exports surpass $10 billion mark ​

KARACHI (July 24 2007): Textile exports have surpassed 10 billion-dollar-mark for the first time in the history of the country, despite domestic and international constraints which hit the target badly during 2007 fiscal year due to fall in the export target by 10 percent, central bank's statistics said on Monday.

Statistics shows that the county's textile exports have posted a growth of 10 percent during the last fiscal year against the target of 20 percent growth, while its share in overall exports has also raised by four percent to 59 percent.

"The central bank's statistics are reliable and on their basis that the country has missed its textile export target," said Federal Minister for Textile Mushtaq Ali Cheema.

He said that the Federal Bureau of Statistics would release statistics soon, but "we are sure that the country's textile export target has missed somewhere between 10 percent and 14 percent.

"Although the central bank statistics show that textile exports have increased by 10 percent, but still it is lower than the growth target of 20 percent set by the Federal government for the last fiscal year," he added.

He said that despite the difficulties and hurdles, it was a big achievement and it was expected that during the current fiscal year, the export target would be achieved.

Statistics released by State Bank of Pakistan (SBP) show the country's textile export have touched new peak of 10.012 billion dollars during the 2006-07 fiscal year as compared to 9.141 billion dollars during the 2005-06 fiscal, witnessing an increase of 870 million dollars during 2007 fiscal year.

Another positive sign witnessed during the last fiscal was that the textile export's share in the overall country's exports also surged by five percent to around 59 percent, which earlier stood at 55 percent for the last few years.

Statistics indicate that the country's overall exports claimed to have reached 17 billion dollars during 2007 fiscal, out of which textile exports' share have was 10.012 billion dollars against 9.141 billion dollars, out of 16.387 billion dollars during the 2006 fiscal.

Earlier the exporters were expecting that the textile sector would not perform well and the export of the textile sector could be lower than the 2006 fiscal, as they believed that the textile sector was in a serious crisis due to high cost of doing business and healthy competition in the regional countries, including India, China and Bangladesh.

Therefore, the textile sector continued its demand, and demanded further subsidies and rebates on textile exports. Exporters' point of view was that the country's textile industry was in serious crisis and they needed cut in the cost of production to make the country's textile export competitive in the international market.

However, the government believed that textile sector already had got robust facilities and other benefits in shape of research and development. Statistics show that out of 12, only three textile products, including raw cotton, tents and cotton carded exports have declined during the 2007 fiscal, while exports of other products, including readymade garments, synthetic textile, yarn, knitwear, bedwear, artsilk and synthetic witnessed a raise.

Raw cotton exports have declined by 24.032 million dollars to 75.640 million dollars, cotton-carded exports showed a decline of 8.856 million dollars to 275.972 million dollars and tent and canvas by 0.557 million dollars to 72.764 million dollars during 2007 fiscal.

However, cotton yarn exports have witnesses growth of 181 million dollars to 1.075 billion dollars, cotton cloth exports have raised by 59.545 million dollars to 2.318 billion dollars, yarn other than cotton yarn 30 million dollars to 141.307 million dollars, knitwear 187.58 million dollars to 2.105 billion dollars.

Similarly, exports of bedwear have increased by 80.816 million dollars to 1.394 billion dollars, towels export grew by 45.55 million dollars to 166.268 million dollars, readymade garments by 133 million dollars to 1.096 billion dollars.

In addition, made-up article exports witnessed an increase of 33.106 million dollars to 346.795 million dollars and exports of artsilk and synthetic textile reached 386.292 million dollars with 104 million-dollar upsurge, whereas exports of other textile sectors registered 21 percent growth.

Exporters said major reason behind the failure in achievement of the textile export target was uncompetitiveness in the region and despite the several demands, the government was not providing concessions and facilities in the utilities sector. "We are leaving in the 21st century, but still the industries have failed to get electricity and water as per demand," they added.

Textile industry is one of the major industries of the country, which contributes major share of 65 percent in the country's industry and has a share of 40 percent in the industrial jobs.

http://www.brecorder.com/index.php?id=596036&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Pakistan heading towards serious gas crisis: study ​

ISLAMABAD (July 24 2007): Pakistan is heading fast towards serious gas crisis as its demand and supply ratio is not showing equilibrium beyond 2007, Hagler Bailly, Pakistan, claims in a feasibility study conducted in 2006, for Iran-Pakistan-India (IPI) gas line project.

The study indicates that Pakistan is going to witness gas shortage from 2007 onward and imbalance will increase every year to touch the highest level in 2025, when shortage will be 11092 MMCFD against total 13259 MMCFD production.

The study depicts very bleak picture as far as Pakistan's gas resources, demand and supply are concerned. The study is alarming and a wake up call for those who are at the helm of affairs.

It's yet to be officially ascertained how real and authentic information of the study is. However, majority of independent analysts of oil and gas sector agree that Pakistan could face serious problem in gas supply after few years.

This correspondent contacted some very senior officials of the Ministry of Petroleum to know what exactly the situation of gas demand and supply would be from 2007 onward. They conceded that as a result of high growth gas demand was showing upward trend and indigenous production would not be enough to maintain existing pattern of supply. However, they expected a major breakthrough in gas supply through some foreign source to keep things going.

One senior official of the Ministry said: "Everybody knows that indigenous gas production is shrinking quickly and if any foreign source (pipeline) does not materialise in next few years, things could get worse."

The feasibility study indicates that indigenous gas supply and demand were equal by 2006. However, in 2007, it witnessed quick shortfall and the gap would widen in the coming years.

The report said Pakistan gas shortage would increase alarmingly in the next two decades if it did not manage any alternative sources. Pakistan is making desperate efforts to make IPI see ground in next few years. Will it be so? This is a difficult question. The officials are actively engaged in talks to keep IPI case moving and this is all what they can do at the moment.

IPI is a key project for the entire region and it involves international polities more than anything else. On nuclear stand-off, US is all-out to block the pipeline. Washington can go to any extent to oppose the project as long as stand-off on Iranian nuclear issue continues.

http://www.brecorder.com/index.php?id=596056&currPageNo=1&query=&search=&term=&supDate=

 

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'Traders realising changing business dynamics in world' ​

KARACHI (July 24 2007): The economic conditions greatly improved in Pakistan during the last few years due to the very competent leadership of the country. This was stated by the outgoing Director General of Japan External Trade Organisation Karachi Hiroyuki Miyakawa San while speaking at a reception in his honour organised by Pakistan Japan Business Forum (PJBF) here on Monday.

He said that he had passed a very good time in Pakistan saying that he would always remember the co-operation of the members of PJBF. "It is also encouraging to know that the mindset of the business people is gradually broadening", he said and added they are now realising the changing business dynamics in the world, competition and market requirements.

Whether Pakistani businesses are competing with foreign markets or locally with foreign firms the times of today make firms face sharper competition and compel them to think more internationally than they have in the past.

"My successor, Minoru UGA, after taking over the charge will be able to put more endeavours into these works", he added. Regarding his Achievements during his three year tenure, he said that an official visit of the Prime Minister of Japan J. Koizumi and the Minister of METI Nakagawa to Pakistan in January 2005 and April 2005. At that time the yen soft loans were resumed as project development assistance. Previously Japan had imposed sanctions on Pakistan after the nuclear tests.

Recently JETRO completed 5 feasibility studies for infrastructure development projects in Pakistan, including the projects for Revitalisation of Karachi City. These are: The Revival of Karachi Circular Railway, Gharo Area Wind Power Project, Widening & Strengthening of National Highway N-70, Construction of New Khushal Garh Bridge and the construction of Steel Flyovers at various intersections in Karachi. Encouragingly, all of these have been formally requested to the Government of Japan through the Government of Pakistan.

Technical Assistance by inviting JEXSA Experts Ms Noriko Sato, Minoru Ohira, Hiroshi Ito and Kokyo Tamaki for the capacity building of various business institutions. Abdul Kader Jaffer, President PJBF in his massage conveyed his deep appreciation to Miyakawa for his sincere and dedicated services rendered to Pakistan and in particular to PJBF for the development of bilateral economic relations between the two friendly countries.

The Acting President of PJBF, Majyd Aziz said that PJBF is the unique business forum in the country, doing lot of efforts to promote business and balanced the trade between both the countries. Kiroyuki Miyakawa in his speech assured the members of PJBF for his full co-operation to promote Pak Japan bilateral trade.

The Japanese Counsel General in Karachi S. Nakano and Tamaki a JETRO expert was also present on this occasion. The programme was well attend by PJBF members with their spouses including Asif Ali Rasheed, S. Jamil Hussain, Meraj Gul Khan, Sohail P. Ahmed, Younus Dawood and many others.

http://www.brecorder.com/index.php?id=596101&currPageNo=1&query=&search=&term=&supDate=

 

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TeleCard in talks to sell majority shares ​

KARACHI: Asia’s one of the fastest growing telecommunication companies is eying Pakistan as it is in advanced talks with the country’s biggest payphone company to acquire majority shares. Industry sources expect the deal may attract over $90 million.

Sources said the Asian company was likely to strike a deal with TeleCard ñ one of the few payphone companies in Pakistan ñ which had planned to sell its majority shares. “The two sides have been in talks for the last several weeks,” said a source privy to the development. “It may take a month to close the deal but initial talks suggest that more than 55 per cent shares’ sale was discussed between the two sides.”

He said the exact value of the stake sale would be announced once the deal was finalised but estimates suggested that it could be worth more than $90 million. However, he added, the number of shares to be sold would determine the deal’s value. “If an agreement is struck on divestment of 55 per cent shares or a little more than that, the deal is likely to be worth around $90 million or more,” added the source.

The country has attracted foreign telecom companies in recent months as three groups acquire majority stakes in local companies. First, Qatar Telecom stretched its wings to Pakistan and is in final talks to acquire Burraq Telecom’s nationwide and international telephone networks at $30 million.

Egypt’s Orascom Telecom ñ parent company of the largest cellular operator Mobilink ñ finalised a deal with DVCOM, the licensed LDI (long distance and international) and limited mobility telecom operator.

Besides these, Oman Telecom reached an agreement to buy a majority stake in local cable and fixed wireless service provider WorldCall at an estimated $171 million. Sources said TeleCard was initially interested in offering its minority stake and launched talks with several foreign groups but finally managed to attract the Asian company.

“The company is in talks with that (Asian) firm,” a company source confirmed but requested not to name the Asian telecom concern. “It is premature to give a timeframe and value of the deal but these are expected to be finalised sometime next month.”

Currently, TeleCard provides payphone and WLL (wireless local loop) services and also has an ISP (Internet service provider). “The company aims to become the most technologically advanced integrated telecom solution provider of the country,” he added.

“The company has successfully launched WLL service (GO CDMA) based on CDMA2000 1X technology that provides a unique combination of voice and data/Internet for the first time in Pakistan,” he added.

The telecom sector has attracted substantial foreign investment during the last three years with main focus on cellular service. However, industry players believe it is high time that reputed international telecom operators capitalise on the opportunities, particularly in rural areas.

Telecommunications attracted $1.41 billion foreign direct investment during the first nine months (July-March) of 2006-07, a jump of 34 per cent, remaining at the top among all other sectors.

http://www.thenews.com.pk/daily_detail.asp?id=65475

 

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Pakistan may cut farm tariffs by 36 per cent​

ISLAMABAD, July 23: Pakistan is likely to accept cuts in its tariff by maximum 36 per cent on agriculture products under the current round of Doha Development Agenda (DDA), says a Pakistani trade diplomat.

This is seemed an immediate reaction of Pakistan Mission to WTO, based in Geneva, negotiating the country’s position on various areas of the DDA. The chair on committee on agriculture has recently issued draft modalities text on agriculture in response to reaction on the draft papers on agriculture.

“In any case our bound tariffs are around 100 per cent on average thus leaving a lot of water between final bound and applied rates at present,” according to Pakistani Mission official reaction on the draft modalities text.

Besides tariffs, Pakistan would also have recourse to additional flexibilities like Special Products (SPs) and SSM etc., which, in case of any future surge in imports, would provide Islamabad a fair chance to check any potential negative effects on domestic agricultural sector.

“On the whole the text is much more positive for developing countries and well defined in terms of issues and number ranges,”, said Pakistan Commercial Secretary to WTO Ahmad Mukhtar.

Pakistan has been playing a vital role and putting a lot of importance to modalities in Agriculture since this is the area which will have major impact on the living standards of our farmers. Reforms in this area would help Pakistan to materialise its huge potential through getting fair market access and removal of distortions in the international trade for agricultural products.

The modalities text has given a range of $13 to $16.4 billion for Overall Trade Distorting Domestic Support (OTDS) to the US — which is the leading source of distortion in international market. This range, though tight, would still leave some policy space for US to manoeuvre.

However through various disciplines especially the products specific allocation of support and base periods etc, such maneuverability is likely to be capped in particular those crops, which suffer the maximum distortion such as cotton and rice which are leading agricultural products of Pakistan.

Dairy sector both in EU and US has already started receiving a persistent decline of support thus slowly shifting the comparative advantage towards other potential dairy producers including Pakistan.

With this capping in domestic support and elimination of export subsidies by the year 2013, farmers growing rice, cotton, horticulture, wheat, etc., are likely to be major beneficiaries through higher prices and more market access opportunities, Mr Mukhtar said.

In the market access area, the developed countries would reduce their tariffs by 45-65 per cent on average thus providing enhanced market access on MFN basis where Pakistan could capitalise its potential.

Due to the expected treatment to various products (especially horticulture, rice, beef, dairy etc.,) under the tropical and alternative products and the tariff escalation, Pakistan would have an even better chance to get more market access for the value added products.

It is not yet clear, the commercial secretary said, but if rice is finally accepted as a tropical and alternative product which has to be given fullest liberalisation through tariff cuts of at least 70-80 per cent cut in developed countries markets, it would provide lot of additional market access for our rice exports.

According to a study by the Asian Development Bank, if the DDA mandate delivers fully on cotton both in domestic support and market access (which is quite likely based on the existing text) then around 2 million farmers in Pakistan would get out of poverty immediately due to cotton alone.

http://www.dawn.com/2007/07/24/ebr4.htm

 

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Plan to bring one million more under tax net: Poor tax-to-GDP ratio​

KARACHI, July 23: The Regional Tax Office (RTO), Karachi, has chalked out a plan to bring more people in the tax net as it believes that there are 1.597 million potential taxpayers in the city against the present 0.5 million registered taxpayers.

Presently, country’s tax-to-GDP ratio stands at 9 per cent, which is lowest in the region. A two-pronged strategy is being adopted by the RTO to increase taxpayers’ population. In the first place stress would be laid to broaden the tax net and in the second phase efforts would be made to consolidate the existing tax-base by checking evasions and mis-declarations.

These measures are being taken to achieve the Federal Board of Revenue’s target of improving the tax-to-GDP ratio to 15 per cent by 2015. Consequently, the RTO Karachi, in order to bridge the gap between anticipated taxpayers and the existing lot of 0.5 million, has worked out the city’s population to be around 14.5 million.

According to the RTO study after deducting the non-taxable segments of the population the number of potential taxpayers would come to around 1.430 million but on adding around 0.157 million of working women the total taxpayers’ population could be 1.597 million in Karachi.

The RTO has based its study and projected figures on 1998 census and also took some support from international study groups such as Wikepedia Encyclopedia, Humanitarian Policy Group of UK, report by UN-Habitat.

Despite the fact that the FBR had been meeting its revenue targets for the last couple of years and also surpassed the target of last fiscal by collecting over Rs850 billion but the country continues to have the lowest tax-to-GDP ratio in South Asia.

In order to identify a greater part of taxpayers’ population the RTO in coming years would concentrate on enforcement steps, internal control and development and utilisation of data to hunt potential taxpayers, which it believes to be over 1.597 million.

Under the enforcement plan the RTO would cross match the data obtained from the tax returns with the data bank created through the efforts of proposed internal control cell and would also identify non-filers of tax return and will initiate action accordingly.

About 45 days before the last date of filing of tax returns the RTO Karachi will set up kiosks at important commercial centres in all 18 towns of the city. The objective of these centres would be to educate the taxpayers, especially the big ones and the management of federal and provincial government offices.

Workshops will be arranged to highlight changes brought in the tax law.

In line with FBR’s policy and intended changes in law the taxpayers would be encouraged to use e-filing of returns and statements and a scheme of certified tax return preparers would also be launched.

The director general of RTO Asrar Raouf told Dawn that these suggestions were also came up for discussion during the recently held field officers conference in Islamabad.

He said most of these recommendations were welcomed by the FBR chairman and were going to be implemented starting from opening around 50 tax kiosks in major commercial centres from August 15.

http://www.dawn.com/2007/07/24/ebr3.htm

 

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Potato output rises by 57pc in 2006-07​

ISLAMABAD, July 23: Pakistan is self-sufficient in potatoes production for household consumption and depends 99 per cent on locally produced seeds for production of potatoes.

An official source in the ministry on Monday said an estimated 2.47 million tons potatoes were produced during 2006-07, which showed 57 per cent increase against the last year output of 1.57 million tons.

He said seeds constituted about 35 to 40 per cent of the total cost of production of potato. Formal certified seed production is limited and faces technical, economical and management problems, he said.

Lack of availability of sufficient quantities of good seed and low purchasing power of the farmers force them to rely on seed of low quality or on their own production for which most of them do not have the proper skills, he added.

“Poor post-harvest handling including transport and storage facilities causes unnecessary damage and losses and deterioration of quality,” he added.—APP

http://www.dawn.com/2007/07/24/ebr10.htm

 

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Country loses 40% of its annual agricultural harvest ​

KARACHI: The country faces around 40 percent losses per annum in its total harvest that makes up almost five percent of agriculture sector’s exports due to a lot of problems that the sector faces, exporters and the officials of Ministry of Food, Agriculture and Livestock (MINFAL) told Daily Times on Monday.

They said that the principal reasons included difficulties in maintaining quality at the destinations, relatively low export price, lack of research and training opportunities besides implementation on the available information, high air transport cost and inadequate penetration in the international market.

Chairman Fruit and Vegetable Processors and Exporters Association (FVPEA) and Sindh director for Agribusiness Support Fund (ASF) Appraisal Committee, Mateen Siddiqui said that the government has constituted a 12-member task force for improving competitiveness of horticulture sector to boost its export through a focused approach and better financing. He said that the task force members included a senior official each from the MINFAL; ministries of Finance, Commerce, Industries and Production, Health, Science and Technology and the Board of Investment

Mr Siddiqui said that it was decided to add representation from the private sector, commercial banks and exporters in order to make the task force an effective forum in achieving its objectives.

He said that the task force would have a strategic framework for the industry to achieve a horticulture export target of Rs one billion by 2012 besides entering into the new markets with new products.

He said that in their recent and first-ever meeting with Prime Minister’s advisor on Finance Dr Salman Shah an action plan was developed to improve competitiveness of horticulture exports and to create financing opportunities for the sector.

He said that the Competitiveness Support Fund (CSF), on the basis of its study of the food industry has developed the action plan.

It included adopting certification standards, ensuring international compliance, and developing world-class infrastructure including cold storages, reefers, CFCs and agro processing zones.

As many as 39 modern packaging houses, completely automated and equipped with advanced electronic devices for packing and grading and storage plants would be set up at 31 fruit and vegetable growing areas throughout the country, Mr Siddiqui added.

Besides this, 23 facilities for cold storage and controlled atmosphere storage would be established at the fruit production areas, airports and seaports in the country.

Two container yards in Karachi and Lahore with a pool of 200 refrigerated containers and 50 controlled-atmosphere refrigerated containers at each location will be established. Karachi pool will serve the requirements of Sindh and Balochistan while Lahore pool will serve the requirement of Punjab and NWFP.

He said that CSF study pointed out involvement of a number of ministries and divisions and other institutions. The study urged for coordinated efforts for taking full advantage of horticulture sector to increase its exports.

The government is also committed to promote agriculture in the Federally Administered Tribal Areas (FATA).

The study also includes efforts for reclamation of cultivable wasteland, conversion of wild olives into oil-bearing fruits and introduction of beneficial microorganism technology so that the lifestyle of farmers could improve.

The government has so far reclaimed 40,000 acres of land while 100,000 acres of land would be reclaimed under the Sustainable Development Plan for FATA.

Besides, five million wild olive plants would be converted into oil-bearing varieties under two different projects during the current financial year.

http://www.dailytimes.com.pk/default.asp?page=2007\07\24\story_24-7-2007_pg5_1

 

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Body set up to check rising inflation ​

ISLAMABAD (July 25 2007): Prime Minister Shaukat Aziz has constituted a committee to analyse the reasons for food inflation, and formulate both short-term and long-term anti-inflation policies, official sources told Business Recorder.

The country's food inflation remained 10.3 percent in 2006-07, against 6.9 percent in 2005-06, which has been serious cause of concern for the policy makers. The committee will be headed by the Prime Minister himself, who is also the Finance Minister. Besides, it will comprise Minister for Industries Jahangir Khan Tareen, Minister for Commerce Humayun Akhtar, Minister for Agriculture Sikandar Khan Bosan, Prime Minister Advisor on Finance Dr Salman Shah, State Bank of Pakistan (SBP) Governor Dr Shamshad Akhtar and Planning Commission Deputy Chairman Dr Akram Sheikh.

The Terms of References (ToRs) of the committee will be finalised by the Prime Minister himself. It would periodically review causes of fluctuation in prices of essential items and take immediate measures to deal with undesirable situation, sources said.

They said that the Economic Coordination Committee (ECC) of the Cabinet, in its meeting on July 19 had expressed serious concerns over the rising prices of wheat and wheat flour. They said that the ECC in its meeting of June 28 had directed SBP to take measures to check wheat hoarding, but no substantial progress has been made.

Sources claimed that authorities had identified a textile mill, owned by an influential politician, whose godown was full with wheat in place of cotton bales, and it was learned that he was earning Rs 4.5 million per day from wheat transactions. According to sources, the government had also received reports that 40 percent of petrol pumps are also stocked with wheat instead of fuel, which means the provincial governments had failed to check illegal movement of wheat.

The SBP has been directed to seek explanation from those traders who took loans for procuring wheat for export purposes but stocked in their godowns to sell in the local market.

The issue of pulse prices was also cause of concern for the government, which was well debated in the ECC meeting, and Minister for Railways Rashid Ahmad had even asked the Prime Minister to arrest only four big fish of Jodia Bazaar and prices of pulses would come down within days.

However, the Prime Minister did not agree with Rashid's idea, but directed that their export should be banned completely. The ECC in its meeting of June 28 had imposed ban on export of gram (chana), gram split and gram powder, but failed to take any consensus decision against export of daal chana. Consequently, profiteers gained time to make procurement for export purposes, which led to increase in its prices.

Minfal, sources said, was of the view that middlemen would continue to fleece the general public until proper market system was adopted. Sources said that the ECC decided to evolve a system for a comprehensive and focused analysis of the situation and directed the provincial governments to do more to control artificial increase in the prices of wheat and flour.

The prices committee, headed by the Prime Minister's Advisor on Finance, which failed in controlling prices of essential items, may be dissolved, sources concluded.

http://www.brecorder.com/index.php?id=596437&currPageNo=1&query=&search=&term=&supDate=

 

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Trade corridor project: CDWP's concept clearance expected today ​

ISLAMABAD (July 25 2007): The Planning Commission and other line ministries are likely to give concept clearance to National Trade Corridor Improvement Project (NTCIP) that would be undertaken by the Communication Ministry at a cost of over Rs 94 billion, sources told Business Recorder on Tuesday.

The concept clearance of NTCIP will come up for consideration of the Central Development Working Party (CDWP) which is to meet on Thursday, they said. The CDWP, after its concept clearance, may allow the Communication Ministry to go ahead with the preparations of PC-1 of the project to improve the roads infrastructure, which would be the domain of the Ministry under the project that also involves other ministries.

The NTCIP was initiated by the government in August 2005. The priority of this programme can be gauged from the fact that the Prime Minister personally chairs the meetings to review progress of implementation status of the programme. This programme is a roadmap for improving the transportation logistic chain, on the basis of identified inadequacies and weaknesses.

The programme will enhance regional connectivity through trade links, and energy and transport corridors with China, Central Asian Republics, Afghanistan and Iran. The Ministry of Commerce is also an active partner in implementation of NTCIP, and its Trade & Transport Facilitation Project also aims at reducing cost of doing business, sources said.

The project aims at simplifying the procedures of legislation, regulation, administration and documentation. The government under the NTCIP also wants to improve the services in shipping, ports, trucking, customs and insurance, etc. The programme will also include different projects in infrastructure including ports, roads, rail, aviation and air transport and pipelines. The NTCIP envisages foreign assistance of over Rs 66.8 billion, sources said.

Apart from this, the CDWP is also likely to take up concept clearance of the Muzaffarabad City Development Project that would cost around Rs 20.76 billion. The Earthquake Rehabilitation and Reconstruction Authority (Erra) is sponsoring agency of the project. The Erra is not under any obligation to get its projects approved from the Planning Commission. However, its big projects do come for the consideration of different planning bodies in order to take quality inputs from Planning Commission experts.

The CDWP will also take up Pakistan Atomic Energy Commission scheme of establishing Nuclear Fuel Enrichment Plant at a cost of Rs 13.8 billion. The project was deferred at the last CDWP meeting. The Ministry of Water and Power scheme of 100 MW diesel power plant at Khuzdar, worth Rs 7.04 billion, is also on the agenda of the meeting.

The meeting will also consider projects of Balochistan government in which the latter has sought Rs 788 million for electrification of new township at Tali Mat and villages in district Dera Bugti.

Procurement of 300 new design high-speed bogie wagons for Rs 1.6 billion of the Ministry of Railways will also come up for consideration of the CDWP. The Ministry is also seeking Rs 955 million for a pilot project of manufacturing of five 3000-horsepower diesel-electric locomotives.

The construction of new office building of the headquarters of Military Lands and Cantonments at Chak Lala Cantt, costing Rs 130 million, and establishing of Jalozai Campus of NWFP University of Engineering and Technology, Peshawar, costing Rs 6.3 billion are also on the agenda of the CDWP meeting, sources said.

http://www.brecorder.com/index.php?id=596422&currPageNo=1&query=&search=&term=&supDate=