Pakistan Economy - News & Updates - Archive

[Neo]

Rice, footwear, leather exports recover during July-Nov 2008​

KARACHI: Export of rice, footwear and leather slightly increased during the first five months of the current financial year as the initial declining trend in the export of these items has been reversed.

Although, very nominal growth has been witnessed in the export of these items, it is encouraging to see the end of declining trend in export of these items, which otherwise were unable to penetrate in the international market for the last few years.

These products, once having a sizeable share in the total exports of the country had started downward trend since the last financial year and despite a number of initiatives announced in the last two trade policies, the negative export trend in these items could not be reversed.

Listed in the traditional items category of export base of the country, the disappointing figures of these items during the first four months of current year resulted in overall decline in the exports of the country.

Among the exports of these items, rice after showing some decline in initial period of this fiscal was marginally up by 0.88 percent during July-November of 2007-08 by reaching to $420.804 million compared with $ 417.304 million in the corresponding period of the last year.

Rice exporters attributing this marginal growth in exports to lifting of ban on country’s rice by Russia as it was a major obstacle in exports growth of rice when the ban was imposed. However, as with lifting of the ban, some progress was seen and exports could soar in the coming months.

Likewise, export of leather goods was also slightly up 2.93 percent to $254.362 million in the five months over $247.119 million in the same months of previous year with some items registering growth and few coming down.

Leather garment export was up by 16.83 percent to $196.653 million in the months under review as compared to $168.331 million in the corresponding months of previous year.

However, leather gloves export was down by 15.68 percent to $46.787 million against $ 55.490 million and other manufactured leathers were also down by 53 percent during the period under review.

“Government should also give cash subsidy to this sector, if it wants to put the export of leather goods back on track,” an exporter remarked and referred to a number efforts made by the industry to seek some relief, which, however was refused by the authorities.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Amendments in ATTA for Pakistan: Afghanistan to give transit rights for export to CARs​

ISLAMABAD: Afghanistan would provide transit rights to Pakistan to export its products to Central Asian Republics (CARs) through land route by incorporating amendments in the Afghan Transit Trade Agreement (ATTA).

Dr Anwar Ul-Haq Ahady, Afghan Finance Minister told Daily Times the other day at the sidelines of the Pak-Afghan Business Forum held at a local hotel.

Dr Ahady said draft of the revised ATTA agreement is ready and would be presented before the Afghan Cabinet in near future. He further informed that this draft would be discussed with Pakistani authorities in the next Pak-Afghan Joint Economic Commission meeting and would be decided bilaterally. The revision in ATTA would provide transit rights to Pakistan to market its products to Central Asian Republics (CARs), similarly, as Pakistan is providing transit rights to Afghanistan for its imports.

Afghanistan would provide Pakistan transit rights to have access to markets of CARs and increase its trade volume with such states through Afghanistan.

He expressed concern over the postponement of the Pak-Afghan Joint Economic Commission meeting that could not be held during year. He said “We are also going to raise the issue of allowing of Afghan trucks to carry ATTA cargo from Karachi as well as from Peshawar.” Afghanistan allows Pakistani trucks to enter but Pakistan does not allow Afghan trucks even into Peshawar. “We would like Pakistan to reciprocate and allow Afghan trucks to transport its cargoes from Peshawar as well as from Karachi,” he added.

Earlier during the forum Afghan side suggested that public and private sector of both the countries can sit together at a place and discuss and resolve issues hampering trade and investment including tariff and non-tariff barriers.

Replying to a query about the concerns about the increase in import duty from 20 percent to 40 percent on import of soft drinks and non-alcoholic beverages from Pakistan, it was informed that this has been done to protect local industry for a limited period and duty would come down by end March 2008.

While expressing willingness to resolve the issues hampering cement export to Afghanistan and CARs and Afghan side agreed that issuance of additional copy of duty payment by the Afghan customs would be ensured so that Pakistani exporters could use it for legal formalities. It was informed that Afghanistan needs cement from Pakistan and any further difficulty faced by the exporters would be removed.

Afghan side also assured early refund of guarantee amount charged from Pakistani exporters for making exports to CARs at the time of transit in Afghanistan. Pakistani business community had expressed concern over about one year delay in issuance of such guarantee amount by Afghan authorities. Pakistan side suggested that a Free trade Agreement (FTA) with Afghanistan would create a win-win situation for both the countries.

It was informed to the Afghan side that Pakistani exporters are facing many difficulties in Afghanistan and said that they are charged 110 percent duty on goods in transit from Pakistan to CARs through Afghanistan as security or guarantee and it takes one year for its refund claim. Pakistan side also requested that ban on import of poultry from Pakistan should be lifted to facilitate its exports. To curb the menace of smuggling, it was also suggested to Afghanistan to rationalise its trade regime.

ICC&I showed interest to sign a Memorandum of Understanding with Afghan Chamber of Commerce, which will ease out exchange of trade related information for business delegations.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Call to implement Rs 4,600 minimum wage in all workplaces ​

ISLAMABAD (December 28 2007): Policy Planning Cell, Manpower Division, Chairman Dr Sabbur Ghayyur said the minimum wages of Rs 4,600, announced by the government in budget 2007, now applicable only in the manufacturing sector, should be made applicable without prejudice in all the workplaces. "Even a taxi driver should be paid the same amount," he said.

Speaking at a seminar on Wednesday at the Pakistan Institute of Development Economics (Pide) on the National Employment Policy 2007, he said the decision for reaching the lowest wage criterion must be taken in consultation with the workers, government representatives as well as employers. It must also be based on the actual cost of living, implying that the index wage of Rs 4,600 is less than prices reality obtaining in the market.

The main focus of the policy is on productive employment to result in decent work coupled with fair compensation for which the government must work to overcome constraints in the development of rural areas mainly in the agriculture, livestock, dairy, fisheries, horticulture sectors as well as different industries.

Unemployment of the educated and the youth called for special measures, as well as 'unemployment guarantee schemes in rural areas, promotion of self-employment and extending the coverage of national internship programme' which in his opinion might reduce unemployment. Dr Ghayyur further suggested that to reach the desirable end, 'public works programmes should be integrated with employment guarantee projects.'

Pide Vice Chancellor Dr Rashid Amjad, explaining facets of the same policy, stated that the country would need a better growth rate than the present six to seven percent.

He referred to the complicating factors of about 1.5 million labour force entering the national market annually. To accommodate this huge number, the increasing labour force must be skilled. To meet the mounting annual explosion of workers the country must create efficient, equitable right-based market for them.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Chinese company may be awarded Chichoki Mallian project ​

ISLAMABAD (December 27 2007): The federal government is likely to award 450-500 MW Chichoki Mallian (Sheikhupura) thermal power project to Dong Feng of China after the proposed sponsors - Qatar Investment Authority decided to stay away, official sources told Business Recorder.

The Economic Coordination Committee of the Cabinet will take up the issue at its meeting on Thursday, December 27 with Prime Minister Muhammedmian Soomro in the chair.

The ECC, in its meeting on October 31, 2007 had directed the Ministry of Water and Power to issue a notice to the proposed sponsors including Alstom-Marubini and QIA to come up with a deadline within a week as to when they intend to file an application to the National Electric Power Regulatory Authority for tariff fixation and project completion to avoid further delay.

The sources said the GoP had written several letters to QIA for this purpose, but they did not pay any heed despite the fact that gas allocation deadline of November 30, 2007 has expired.

Now the government is considering awarding the contract to Dong Feng on same terms and conditions applicable to 450-500 MW combined cycle power plant at Nandipur, the sources maintained.

Though the government had accepted the increased project cost of $525 million from the original estimate of $350 million due to involvement of some top former government functionaries, QIA failed to honour its commitment. The sources said the Chinese company would complete the project within the stipulated cost of $330 million.

The sources said the ECC will also consider a proposal of Private Power Infrastructure Board to indemnify foreign lenders and companies investing in projects against changes in Pakistan's laws which could affect the legality and enforceability of the power sector Implementation Agreement (IA) and Power Purchase Agreement (PPA) and government guarantee.

They said companies investing in projects were facing lending problems, as foreign lenders were reluctant to extend loans in accordance with Pakistani laws. "Each foreign lender wants direct agreements (IA and PPA) and GoP guarantee to be subject to and governed by the laws of England to provide protection to them as per normal practice with cross-border limited recourse financing of projects of this nature involving international sponsors and lenders, against the invalidity and enforceability of the GoP guarantee due to change in the laws of Pakistan," the sources added.

According to the sources, the ECC would also discuss wheat and flour crisis in the country as prices have increased by Rs 100 per 100-kg bag on Wednesday after Punjab imposed ban on inter-provincial movement of the commodity.

The sources said the Ministry of Food, Agriculture and Livestock (Minfal) will submit a report to the ECC regarding availability and releases of wheat to flour mills by the provincial governments. The Trading Corporation of Pakistan (TCP) will also present a report on imported wheat consignment delivered so far and that of in the pipeline.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Qadirpur power plant: Engro Energy signs $154 million financing accord ​

KARACHI (December 27 2007): Engro Energy (pvt) Limited - a 100 percent owned subsidiary of Engro Chemical Pakistan Limited - has concluded signing of project financing documents with a consortium of foreign institutions for its 217-megawatt capacity power plant being constructed near Qadirpur, District Ghotki, Sindh.

Under the agreement, the lenders will provide 154 million dollars. The project, with a total worth of 205 million dollars, shows Engro's commitment to invest in Pakistan. Engro Energy on its part is determined to help in alleviating the power crisis in Pakistan by making much-needed investments in the power sector.

The project will generate electricity by consuming low quality permeate gas from Qadirpur gas field, which is being flared currently also resulting in reduced carbon emissions.

The plant will be based on highly efficient technology being provided by China National Construction and Engineering Company (CNCEC) resulting in lower cost of power generation. The consortium comprises of leading international foreign financial institutions including IFC, DEG, Proparco, FMO, Swedfund International and Opec Fund for International Development.

This is the first-ever Pakistani private sector power project being funded by Swedfund and Proparco, while the German development finance institution DEC is actively supporting projects in Pakistan as an international finance partner since last two years after resuming its activities in Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Businessmen foresee bleak trade scenario: Benazir’s assassination​

KARACHI, Dec 27: The trade and industry people, terming the assassination of PPP chairperson Benazir Bhutto after her election meeting in Rawalpindi a national political loss, forecast a bleak scenario for business and export.

They said it would tarnish country’s image as now chances of holding of general elections on Jan 8 are remote. Talking to Dawn in a grim tone, many industrialists declared Friday as a closed holiday in their respective units after various incidents of violence in the city. They said they see little chances of opening of their units any time before Saturday.

Transport has already vanished, and transporters may keep their vehicles off the road till Saturday for fear of increase in violence.

The businessmen also feared a possible suspension of export shipments from Friday to Sunday depending on the city’s situation, besides problems in securing future orders from foreign buyers who are already alarmed over various negative political developments which pose another challenge.

They said the shipment that was already at the port by Thursday evening could reach their respective destinations.

They added that foreign buyers, who had already been cautious about visiting Pakistan after March 2007, would now definitely refrain from landing in the country.

The Vice President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Zubair Tufail, expressed his disappointment over law and order situation in Pakistan where national leaders were being targeted which has not happened even in Iraq. “Banazir’s killing is a big political and national loss,” he said, adding it was the government’s responsibility to provide security to the popular leaders, but it has failed.

“Foreign investors and entrepreneurs would now shiver to enter into Pakistan considering it as a dangerous country. Image of Pakistan after this incident hit the rock bottom,” he added.

The incident would have a far-reaching impact on the economy and it would take a very long time for its recovery.

Zubair urged the government to control the rising terrorist activities in order to save the country’s tarnishing image.

Chairman, F.B. Area Association of Trade and Industry (Kati), Masroor Ahmed Alvi, said all the industries in the F. B. Area have been closed from the evening after people expressed their anger by resorting to violence in the area.

There is unlikely that business activities would resume on Friday or Saturday as much depends on the law and order situation.

“Under the current circumstances, I do not see holding of elections next month,” he said adding that exporters will suffer heavily both on getting future orders or meeting timely shipments for the next two to three days.

The economy is likely to remain in turmoil for the next two to three months. “The real problem is reviving the country’s image in the foreign countries after the killing of a big leader,” he said.

Chairman, Korangi Association of Trade and Industry (Kati), Masood Naqi, said all the industries had been closed down on Thursday evening after deteriorating law and order situation in Korangi.

“The most daunting task right now is how to improve the country’s image and come out from a political anarchy in coming months,” he said, adding the country has lost the most popular leader of the west. The economy will continue to remain under pressure.

Chairman, North Karachi Association of Trade and Industry (NKATI), Faraz Mirza, said all the industries, which had been closed on Thursday evening, may remain shut for Friday and Saturday.

“I think that the general elections will not be held under the current political unrest,” he said.

Chairman, Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), Fawad Ejaz Khan, said export of leather goods would hit hard as this was the peak time of exporters to make preparations for the 2008.

He said big buyers would either avoid placing huge orders in Pakistan or they would shift towards China while small buyers have been accustomed of the situation in the country.

He was of the view that general elections were unlikely to take place under the heating up of unrest in the country.

Senior Vice Chairman Site Association of Industry, Rauf A. Sattar, said industries in SITE areas may remain closed for two to three days, thus affecting the local as well as export business.

He was of the view that elections would not be held under the current chaos in the country. It would take at least two months for the normalisation of political and economic activities depending on the situation.

Businessmen foresee bleak trade scenario: Benazir’s assassination -DAWN - Business; December 28, 2007

 

[Neo]

Pakistan enters world cement market in a big way​

KARACHI, Dec 27: After remaining a traditional supplier of cement to Afghanistan for the last so many years, Pakistan has now entered the world market in a big way.

Shortage of cement in India and strong demand from North African countries, including Yemen, has compelled three major players in cement to further expand their production capacities within a short period of one year.

Industry sources disclosed that Bestway is further expanding its capacity by 4,000 tons per day, and the plant would come into production next year.

Similarly, Luck Cement is also setting up another plant with a capacity of 6,000 tons per day and D G Khan is reported to be also working on similar plans.

So far around three million tons have been exported to these countries but exporters have yet to fully explore Indian market where annual demand stands at around five million tons.

Presently, India faces an acute cement shortage in its Southern states of Tamilnado and Madras and in north Punjab. However, reports indicated that the Indian industry is also working on a fast track to expand their capacity in these regions to off-set the shortfall.

In the meantime, Pakistani exporters were exporting cement to Iraq but due to acute port congestion, it remained irregular though there was great demand for cement after the war for reconstruction work.

However, cement units in northern areas of the country continued to feed the traditional Afghan market by supplying up to 2.5 million tons.

Similarly, strong demand for cement from North African countries, including Sudan, Ethiopia, Algeria and some other states, made its way through the Red Sea port of Djibouti.

On average, cement exports to African countries fetch between $110 and $115 per ton C&F.

Early this year, India began to face cement shortage and it immediately began to look around to supplement cement supplies which could have badly hampered its on going projects.

Consequently, Pakistani exporters taking clue began to explore the non-traditional Indian cement market, but to their utter dismay, they soon came to know that a number of non-tariff barriers (NTB) were hampering their export commitments to India.

Nevertheless, exporters did not lose heart and keep facing odds in order to capture Indian cement market, particularly at a time when trade balance is fully in favour of India.

Out of total trade between the two countries, presently 75 per cent are imports and only 25 per cent exports from Pakistan.

It took four to five months for Pakistani exporters to get registration and certification from the Bureau of Indian Standard (BIS).

A team of BIS experts also visited a number of cement manufacturing facilities. The issue was, however, decided in July during secretaries-level meeting of the ministries of commerce of both the countries.

After intense lobbying by the PHD (Punjab, Harriana and Delhi) Chamber of Commerce and some Pakistani exporters, it was also decided to allow cement exports through road.

Former president of Karachi Chamber of Commerce and Industry (KCCI) Amjad Rafi, who also attended these meetings, told Dawn that it was also agreed that both the sides would allow trucks to move into each other’s border up to half or one km and construct truck terminal.

However, the National Logistic Cell (NLC) has already developed a truck terminal at Wagha with a capacity to accommodate about 100 truck lorries, but India has yet to construct the facility on its side at Attari border.

As a result of this, cement which is a bulk commodity, could not be exported through road.

Consequently, actual export of cement to India began late September or early October and according to industry sources, around 0.2 million tons have been exported, so far. However, a substantial quantity is in the pipeline because many loads are in high seas and some exporters are holding L/Cs.

Most cement exports to India had, so far, been through sea or by railway. The Pakistan Railways have doubled cement loading capacity to India.

However, exporters complain that railways freight charges for carrying cement from Lahore city to the border are Rs500 per ton ($8 per ton) while it covers only 35 km. Against this, they say on the Indian side, the freight is only $3 per ton for bringing goods from Chundrigar to the border area.

Exporters said cement exports to India through sea on an average earned $85 per ton C&F, and from Wagha border it remained little less. However, all these deals and transactions are finalised through Dubai where L/Cs are negotiated and are opened. There is also huge demand for cement by large Indian state-owned corporations and recently a delegation also visited Pakistan to seek shipment of around two million ton exports on government-to-government basis.

However, exporters lamented that they had been facing a number of problems with regard to cement export to India but no government department or agency had come forward to their help.

They said that the Trade Development Authority of Pakistan (TDAP) had been claiming to support non-traditional items and non-traditional markets, but they did not extend any help to capture the Indian cement market.

Amjad Rafi is highly critical of the TDAP role and said on many occasions, the FPCCI approached the authorities over the issue of cement export to India, particularly with regard to BIS registration and certification, but they did not even took the pain of replying to these communications.

He further said the TDAP had been giving freight subsidy to many non-traditional items and markets but did not take any interest in this non-traditional commodity which is being exported to a non-traditional market.

He said presently cement exports have been badly hit by high freight being charged by tucks and also by foreign shipping companies for the haulage of cement from Pakistan to India.

Zulfikar Thaver, president Union of Small and Medium Enterprises (Unisame), said small and medium exporters are not getting vessels for export of cement because there was little chartering arrangements.

Consequently, cement exports is only going through containerised vessels.

He said if adequate chartering is made, cement exports could be doubled as large-scale enquiries are being received by exporters.

Mr Thaver said that fresh enquiries have been received from Russia and buyers are quoting very attractive prices as Pakistani cement quality is of very high standard and holds good strength.

Pakistan enters world cement market in a big way -DAWN - Business; December 28, 2007

 

[ahussains]

Good thing about the Cement it means they are going into the Indian Cement Industry and our requirments will be completlty fullfilled .. Keep it Up.

 

[Neo]

Economic cost of Benazir’s death ​

Govt faces tough time to meet export target

Sunday, December 30, 2007

LAHORE: The economic cost of the death of Benazir Bhutto would bring about difficulties for the government to meet its growth, revenue and export targets which were already under pressure due to government’s reluctance to take hard economic decisions in the election year.

The country has lost billions of rupees in revenues and exports besides colossal loss to property and life in two days of strike and riots after the death of former prime minister Benazir Bhutto.

All economic activities have suddenly stopped. Not only normal trading activities have halted but also the public transport is completely off the roads.

The industries have been closed. Angry protestors have destroyed valuable infrastructure. Banks have been looted and set on fire. The trains have been burnt and scores of Railway Stations have been demolished. The initial estimates of loss to public property are around Rs10 billion out of which Pakistan Railways alone has suffered a loss of Rs3.5 billion.

Experts estimate the revenue loss for Rs7 billion during the two days. This appertains to the loss suffered as per revenue targets.

The loss would be much higher as private sector would book losses for the vehicles burnt and property and stocks lost during the agitation. This would put further pressure on revenue collection. The government is already spending Rs13 billion averagely per month for providing protection to the consumers on petroleum rates. The budget deficit has already ballooned to unmanageable limits. The current pressure could trigger inflation beyond the control of economic managers.

The government is unlikely to risk its acceptability further by increasing petroleum rates so soon after the demise of the PPP’s chairperson.

Experts pointed out that CBR (now FBR) had been able to overshoot the tax revenue targets for last four years due to uninterrupted industrial and trading activities.

They said during the last five years neither the industry nor the trade observed any strike or closure even for one day. They said it is for the first time after five years that every economic activity in the country halted for the two days. They said past riots, rallies, protest-march and terrorist activities failed to stop production or trade activities. They said the present disruption has come at a time when revenue generation was already under pressure.

The exports had remained below targets for the last two years and were likely to remain so this fiscal. The imports on the other hand had shot much above the government estimates that have increased the trade deficit.

Most of the developed countries had already advised their citizens to avoid traveling to Pakistan after the killing of Benazir. This would further put pressure on exports. Many garment and knitwear exporters informed The News that they have received queries from their buyers on their ability to timely execute the orders already placed with them.

The exporters apprehend that the new orders would be fewer as the buyers would shift to risk free countries. They said per unit rates of Pakistani products that are already very low would also come under pressure. Economic experts think that it would require some time and effort to restore the confidence of the foreign buyers.

Economic cost of Benazir’s death

 

[Neo]

Benazir Bhutto’s assassination: Pakistan may miss economic targets​

* The country may face Rs 50bn losses
* FBR needs Rs 2.739bn additional receipts per day to meet Rs 1.025tr revenue target

ISLAMABAD: The country may not be able to achieve the economic targets set for the current fiscal year as it has faced around Rs 50 billion revenue losses due to marred economic activities after the assassination of former Prime Minister Benazir Bhutto and during the Eid holidays, a senior official told Daily Times.

Besides long Eid holidays, the government departments have been closed from December 28-30 Sunday (today) as official holidays. This would decrease the overall revenue collection in terms of different taxes including income tax, federal excise duty and sales tax during the last ten days of December causing a loss of around Rs 50 billion, an official said. Official in Federal Board of Revenue (FBR) said that during the last 10 days including Eid holidays and after the assassination of former Prime Minister Benazir Bhutto the country has faced around Rs 50 billion losses and FBR would need Rs 2.739 billion additional receipts per day in the coming days to meet the Rs 1.025 trillion revenue target set for the current fiscal year.

Economic analysts believe that the current negative indicator would continue in future multiplying further losses amounting to billions of rupees in the coming days as the trade and industrial activities are not likely to start soon after the political turmoil followed by (late) Mrs Bhutto. FBR would also lose the collection of income tax, federal excise duty and other levies due to closure of banks and marred economic activities as transportation and telecommunication systems suffered a lot across the country. Official also said that if any delay occurred in the clearance of transshipment goods and cancellation of export orders, it would also cause revenue loss having negative impact on collection.

According to the figures of finance ministry, the total revenue during the first quarter was Rs 312.623 billion out of which collection by FBR stood at Rs 215.578 billion. Petroleum and Gas surcharges yielded Rs 8.77 billion, including Rs 4.151 billion as petroleum development surcharge and Rs 4.626 billion as gas development surcharge. Non-tax revenue stood at Rs 97.035 billion during the period under review.

The FBR official has claimed that during the last some days the sale of petroleum products dropped and the sales tax collection from petrol and other petroleum products would also decrease. The collection of taxes from furnace oil, consumed in industrial units, would also show downward trend.

Experts also believe that the loss in revenue collection may pose a negative impact on the ongoing development programmes and it would definitely affect the Public Sector Development Prgormme (PSDP) spending.

On the other hand the overall budget deficit faced by the federal government had reached Rs 158.056 billion during first quarter of the current fiscal year, which is 39.60 percent of the whole fiscal year’s target of Rs 398 billion. If the budget deficient further increased in other three quarters of the current year as the increase was realised in the first quarter (40 percent), it would definitely affect the PSDP spending. Officials in the ministry of finance at the moment are proposing some cut in the allocated amount of PSDP to fill the budget gap.

During the current scenario, if FBR fails to achieve the set target of revenue collection, government may face problems regarding the fund generating for the ongoing development projects and government would have to manage financing from different countries and financial institutions to complete projects in stipulated time. Government spent a total sum of Rs 470.679 billion that includes Rs 39.989 billion in non-development expenditure.

The government paid Rs 111.126 billion as interest on local and foreign loans. Out of these, Rs 98.541 billion were spent on servicing of domestic debt and Rs 12.585 billion were spent on foreign debt servicing. Total defense spending stood at Rs 57.546 billion. Development expenditure and net lending during the first quarter stood at Rs 129.817 billion.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Turmoil in Pakistan may further delay talks on Turkmen gas project​

* The talks were scheduled on November 27-28, in Islamabad but due to emergency other partners stayed away

ISLAMABAD: The current political turmoil followed by assassination of the former Prime Minister Benazir Bhutto has caused a further delay in the minister-level talks on Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline project.

Sources in Petroleum and Natural Resources ministry told Daily Times here Saturday that now the talks on TAP gas pipeline project would be held in February next year. Earlier the talks were scheduled to be held on November 27-28, 2007 in Islamabad but due to imposition of state of emergency in Pakistan, other partners of the project stayed away to join talks.

“Other partners like Afghanistan and Turkmenistan have indicated to join the talks in February next year, however, the dates have not been finalized yet,” the official added. He said that talks were likely to be held during the next month but the political turmoil may cause further delay in the talks on TAP gas pipeline project.

Sources also said that India has been formally invited to join talks as the fourth stakeholder of Turkmenistan-Afghanistan-Pakistan gas pipeline project but the former wants to hold talks on TAP project in politically stabilised environment.

Earlier India had the status of observer it has been participating in the talks between three countries Turkmenistan , Afghanistan and Pakistan but now the project would become four nations project after the full participation of India in the talks.

India is, reportedly under pressure from the US to scrap the Iran gas pipeline project and it has stayed away from the Iran-Pakistan-India gas pipeline project talks held about four times in Tehran and Islamabad respectively, India is now taking interest to participate TAP project,” the official said.

He also noted that the proposed gas project cost has been estimated as $6 to 7$ billion and Asian Development Bank (ADB) is sponsoring the gas project, so other investors would also be invited to carry out the gas pipeline project. The investors would also arrange the financing from different international financial institutions.” Oil companies like Shell and many others companies would also be invited to carry out the project,” the

official said adding that the tender would be floated to invite the investors for carrying out the project. Official said the investor that carries out the project would receive the transport fee.

The official said that Pakistan would import 3.2 billion cubic feet gas from Turkmenistan and the said gas would be shared by both India and Pakistan . Turkmenistan claims to have gas reserves of 159 trillion cubic feet at its Dauletabad fields, and Russia is the main importer of gas from Turkmenistan .

The proposed TAP project is being sponsored by the Asian Development Bank (ADB)

and the proposed 1,680 pipeline will run from Daulatabad gas fields to Afghanistan and from there it will run alongside the highway from Herat to Kandhar and then via Quetta to Multan.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Political parties not clear on key economic issues ​

ISLAMABAD (December 30 2007): An analysis of the Election 2008 manifestoes of the major political parties indicate that they are not clear as to how each of them plans to address the key economic issues confronting the nation. An important issue which has not received direct or detailed attention from any political party is the fast declining business competitiveness of Pakistan in a globalised world.

The vision, policy and plan to address this critical issue are missing from the party manifestoes. Agriculture in Pakistan is suffering due to shortage of irrigation water. The scarcity of water during the low-rain periods necessitates development of water reservoirs on the rivers. The current reservoirs are silting up and capacity is depleting.

In addition, hydroelectric projects are essential to meet the rising needs of energy at competitive rates. Despite these pressing needs, Pakistan has been unable to build new storage dams and hydroelectric projects because the provinces could not develop consensus. Unfortunately, none of the political parties have proposed a tangible solution to this critical problem and have largely dwelled in generalities and expression of good wishes.

The Pakistan Institute of Legislative Development & Transparency has done an analyses of the manifestoes of the Awami National Party (ANP), Muttahida Majlis-e-Amal (MMA), Muttahidda Quami Movement (MQM), Pakistan Muslim League (PML), Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP).

Pildst has analysed stand of these political parties on economic, political and social issues, nuclear policy and foreign relations.

The analysis reveals that on most issues, the Pakistan Peoples Party and the Pakistan Muslim League-Nawaz have outlined detailed or extensive policies.

The analysis said that the PML and the MQM have also presented detailed positions on some issues but in comparison to the PPP and PML-N who have had experience in running the governments at the centre and in the provinces, the positions of other political parties lack comprehensive treatment.

A common feature of the manifestoes is the generality or vagueness of their positions on a number of issues. At times, the articulation of the positions amounts to non-statements. Despite this common flaw, some parties have taken specific positions on some issues and that makes the public accountability of the party easy once it comes into power and serves for a term.

On the broader cluster of economic issues including Unemployment, Poverty Alleviation, Agriculture Development, Water Resources and Energy, the PML-N and the PPP have presented detailed policies followed by the PML and the MQM.

The ANP, mostly focusing on economic issues faced by the NWFP has taken a detailed position only on the Agriculture Development and Water Resources stressing its position against the construction of new water reservoirs.

On the critical issue of energy crisis in the country, both MQM and the PML have outlined no position in their manifestoes while only the PPP has discussed the subject in detail with all remaining parties with a general mention of their position on the issue.

The most striking and bold aspect of the PPP's economic manifesto is the commitment to provide guaranteed employment for at least 1 year.

The section containing political issues included: Independence of the Judiciary, Civil-Military Relations, Sovereignty of the Parliament, Provincial Autonomy, Devolution and the Local Government System, Status of Fata, Policy to Counter Terrorism, Independence of the Media, Corruption and Accountability, it is the PML-N and the PPP that have made extensive pledges.

The PML-N is the only political party that has devoted a chapter in its manifesto to the Independence of the Judiciary and the Civil-Military Relations, taking a clear position on the reinstatement of the deposed judges.

The PML and the MQM, both allies of the Musharraf regime, have taken no position on the question of civil-military relations or on the role of military in politics or the independence of the judiciary.

The PPP is conspicuous by taking a very brief, general and almost vague position on the Independence of Judiciary and by taking no position at all on the reinstatement of the judges deposed on November 3, 2007.

Both PPP and the PML-N have outlined extensive positions on the sovereignty of the Parliament outlining key reform to strengthen the institution of Parliament.

On the issues of Education, Health, Labour, Rights of Women, Non-Muslims, Youth and Environment, the parties' positions follow the same pattern.

Despite Youth constituting a large chunk of the population and notwithstanding youth's role in the overall electorate today and in the days to come, most political parties including the PPP, the ANP, the MMA and the MQM do not mention Youth in their manifestoes with only the PML and the PML-N outlining detailed positions on the subject.

The issue of Health, Women Development, Rights of Non-Muslim Communities and Environment too do not receive adequate levels of attention by the political parties whose manifestoes have been covered in the study.

Issues of Labour, as expected, have been mentioned in the greatest detail and the most specific terms in the PPP manifesto. The PML-N, though, is the only party which has given a specific figure (Rs 5000) for the new minimum monthly wage for labour.

On the Security Policy, especially Nuclear Policy and Pakistan's Foreign Policy with key regional and international players including India, Afghanistan, USA, European Union, China and the Muslim countries, most parties' positions are not a departure from the existing nuclear policy of the country. All parties supporting strengthening of relations with regional and international players.

The PPP wishes to place the command and control of nuclear weapons under the Defence Committee of the Cabinet headed by the Prime Minister unlike the current position where this control has been vested in the President recently. The PPP has also outlined extensive proposals to improve relations with Afghanistan while the PML-N wishes to focus on building economic ties with countries around the world.

Almost all parties except the former ruling party the PML have repeatedly demanded "an independent Election Commission" but surprisingly how these parties, with the small exception of the PML-N, propose to make the Election Commission independent is not touched in the manifestoes.

Business Recorder [Pakistan's First Financial Daily]

 

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Plan to boost olive oil production​

ISLAMABAD, Dec 29: The government has planned to enhance olive oil production and processing areas in 12 districts of Balochistan to bring 6000 acres land for cultivation of olive orchards.

According to the ministry of food and agriculture sources, during the five years, 675000 plants in these districts which are considered as low delta crop for mass propagation of olive oil would be planted.

The sources said to standardise the propagation and cultivation techniques for mass production of olive plants nurseries would be developed during the period.

The official said that about 6,000 acres or equivalent number of trees will be developed as orchards on farmers’ field during the project period.

The sources said that research wing of Agriculture Department has given a serious consideration to the problem of the drought in the region searching all possible solutions to overcome the crisis pertaining to water deficiency for all kinds of crops particularly olive orchard.

The sources said that fresh and positive experience on Olive (plea europea L.) cultivation in some selected locations of the region performed mainly in horticulture Fruit Experimental Station Baghbana (Khuzdar), Fruit Experimental Station Loralai and Fruit Development Centre Quetta, Pishin, Mastung, Kalat, Kharan, Noshki, Barkhan, Musakhail, Zhob, Sibi (Harnai) has given good indication for promotion of this crop. The sources added that this fact is the most suitable orchards in these areas.

About purchase and installation of machinery and equipment the sources said during the period one green house was already set up at Quetta and 2 olive oil processing units were imported from Italy recently and three shade house were built at Quetta at Loralai for the purpose.

The sources added in this regard 72.22 per cent target of processing of olive has already been achieved.

The sources said that as the olive oil extraction units have come in the country, the demand of olive plantation have been increased and people are taking interest in conversion of wild olive trees not European type in their area, therefore the need and requirement of the project has been increased.—APP

Plan to boost olive oil production -DAWN - Business; December 30, 2007

 

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No business activity across Karachi ​

KARACHI (December 30 2007): The countrywide violence has not only brought the industrial activities and export process to a complete halt due to unavailability of transport and labour and not a single export consignment reached the sea ports during the last two days.

INDUSTRIAL ACTIVITIES, EXPORT PROCESS COME TO A COMPLETE HALT:

Exporters told Business Recorder on Saturday that violence, erupted after the assassination of former prime minister and Pakistan Peoples Party (PPP) Chairperson Benazir Bhutto, had badly affected industrial activities in the country in general and Karachi in particular.

They said since Thursday evening, not a single consignment could be reached to the country's two leading sea ports, Port Qasim and Karachi Port from any part of the country, for shipment.

"Entire chain of export process has been disturbed, as the labour and transport is not available, while the banks and the customs offices are closed," exporters added.

They said that the month of December was the peak season for the exports and normally export figures in this month were higher than the other months.

Confirming this grim situation, Karachi Chamber of Commerce and Industry (KCCI) President Shamim Shamsi said: "The country's exports have completely been halted due to the violence in the city and unavailability of labour and transport."

He said that ready consignments of textile, and other products worth million of rupee were lying in the factories could not be transported to the ports due to unavailability of labour and transport.

Factory workers, who had gone to their homes on Thursday evening, had not reported for duty due to the law and order situation, he added.

"Unavailability of transports is also another factor behind the stoppage of exports," he said, and added since hundred of trucks had been set ablaze during the violence on Thursday, the transporter, therefore, transporters refused to provide services.

He said that banks had been closed, as the State Bank of Pakistan declared three-day holiday, following the mourning announced by President Pervez Musharaf. Similarly, the customs offices had been closed after the death of Benazir Bhutto, he added.

Banks would also remain closed for the next two days on Sunday and Monday due to the annual closing, he added. "We are expecting that export process would resume next week, when the law and order situation in the city would improve," said KCCI Vice-President Haroon Agar.

He said because of the current situation, the exporters were trying to contact their buyers to ensure them on time delivery of export orders.

The delay in export consignments would give rise to cost of exports, as the exporters would be compelled to dispatch their consignment by air or direct ships. He said the exports target would be badly hurt if some of export orders were cancelled.

He feared that after the current violence, the foreign investors would also avoid visiting Pakistan, especially Karachi, due to new travel advice issued by different countries.

Business Recorder [Pakistan's First Financial Daily]

 

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NWFP industrial units on verge of closure ​

PESHAWAR (December 30 2007): The growing uncertainty and lawlessness after the killing of Benazir Bhutto has brought all commercial and industrial activities in the country to a standstill.

"Physically, we have had no losses, but it is the lack of transport which has started biting industrial activities in the province," Adeel Rauf, a known industrialist and former president of Sarhad Chamber of Commerce & Industry (SCCI) told Business Recorder.

He said: "The lack of transport is not only creating difficulty for labourers in reaching the industrial units, and has not only stopped the supply of raw material to the industries but also the supply of finished goods to the market. Some industrial units are facing shortage of raw material and if the situation remains the same for next two to three days, then a number of major industrial units would be closed in the province."

He said a number of Letters of Credit (LCs) and export orders have been cancelled. The suspension of business activities has halted supply of Finnish goods at godowns of industrial units. This is causing heavy financial losses to the industrialists.

The protest by PPP workers has halted all business activities. All markets and business centres in Peshawar and other districts of the province had remained closed for two days to mourn the death as also for fear of loot, plunder and arson. All banks branches remained closed.

"Our business has come to a standstill and the supply of oil from depots of the companies has become impossible," Mansoor Sharif, president of Petroleum Cottage Industries said.

He said that fear of ransacking and arson had pushed down the business to zero level. He demanded of the government to take measures for bringing the situation under control.

The stoppage of supply of petrol and diesel has created shortage at the filling stations across the province. All commercial and industrial activities remained closed for second consecutive day. The workers of PPP again came out on the roads for third consecutive day and staged protest marches on city roads.

They were chanting slogans against the government for failure in providing security to their leader. After offering funeral prayers, they marched towards Jinnah Park, where the party has arranged a condolence camp. Two registers have been put for writing comments of the people visiting the camp. Among those who visited the camp were Shabir Ahmad Khan, Afzal and Afzal Panyala of PML-N.

The PPP workers attempted to march on Khyber Road. However, a large contingent of police foiled the attempt.

Business Recorder [Pakistan's First Financial Daily]