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‘Punjab to produce 100,000 skilled workers annually’

LAHORE: At least 100,000 skilled workers will be produced through short training courses in Punjab annually, said Governor Khalid Maqbool on Friday.

According to a press release issued by the Governor’s House, Maqbool was addressing a meeting, which he had called to review the government’s poverty alleviation steps in the province.

The National Vocational, Training and Technical Education Commission (NACTEC) would provide Rs 1.5 billion for this project, the meeting was told.

The governor granted the approval of conducting one-year diploma classes in Information Technology at the Government College University Lahore and at four other universities in the Punjab.

The governor was told that 4,000 skilled workers had been produced through a technical diploma, approved by him (the governor) last year. Currently, 5,000 students are enrolled in various diploma programmes in the province, the meeting needed. The governor also approved a three-month diploma in the pharmaceutical discipline and called for launching nursing courses in the Punjab hospitals.

Punjab University vice chancellor (VC) Dr Mujahid Kamran, Agriculture University Faisalabad VC Dr Bashir Ahmad, Sargodha University VC Dr Muhammad Akram Chaudhry, University of Health Sciences VC Dr Mubasher Hussain and the Lahore College for Women University VC Prof Bushra Mateen were also present in the meeting.

Daily Times - Leading News Resource of Pakistan
 
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Govt prepares bailout strategy for sugar industry

Removal of GST, increasing TCP purchases likely

Sunday, January 13, 2008

ISLAMABAD: The government is recommending a two-point bailout strategy to enable the ailing sugar industry to make payments to growers. The strategy involves removal of GST on sugar and increasing the strategic reserves to one million tonnes

The Trading Corporation of Pakistan (TCP) will enhance its strategic reserves of 0.5 million tonnes to one million tonnes, as there is a glut in the local production of the sugar, reveals recommendations prepared for the secretaries committee meeting on the commodities and available with The News on Saturday.

The Economic Coordination Committee (ECC) of the Cabinet in its meeting on Nov 29, 2007 waived off 20 percent regulatory duty on the export of sugar, but at the same time, increased the customs duty (CD) by 10 percent from 15 to 25 percent on the import of sugar with an objective to discourage the import of said commodity.

It is interesting to mention that sugar millers are the darlings of the government and their interest is secured in every crisis whether due to shortage or due to glut of sugar supply in the market. In both cases, the sugar millers are beneficiaries and get concessions from the government to keep intact their margins.

Before the start of crushing season, millers and federal government agreed to start the crushing on time and the federal government through TCP would purchase 0.4 million tonnes from the millers at the market price but the stock was later increased to 0.5 million tonnes as record production was estimated for the season.

Now the millers are unwilling to pay growers as their last year’s stocks are still pledged with the public sector banks. To bail out the millers and ensure payments to the growers the federal government through TCP would purchase sugar from the millers at the market price and would build its reserves to one million tonnes, it added.

About millers’ demand of selling this extra 0.5 million tonnes abroad, the secretaries would discuss it and decide whether the TCP should keep it or sell it abroad. In case the stock is offloaded in local market the prices would ease due to excess supply.

It is also recommended by the committee to streamline the process for the TCP to purchase this 0.5 million tonnes of sugar from the millers.

The recommendations also suggest the removal of General Sales Tax (GST) on the sugar. Currently, Federal Board of Revenue (FBR) is collecting Rs3.15 per kg as GST on the sale of sugar.

Similarly, secretaries committee meeting on commodities would also deliberate on issue of additional working capital for the millers, as they are finding it hard to pay outstanding of the growers.

The Ministry of Industries and Production (MOIP) has also submitted a summary with the ECC for the approval of more working capital to handle the payments of growers.

About millers’ accusation that TCP is not releasing their outstanding amounts for buying sugar from them, TCP would also brief the committee about its operations and regarding the payments made to the millers.

Govt prepares bailout strategy for sugar industry
 
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GDP to drop by 11pc if textile mills close: FPCCI

Sunday, January 13, 2008

KARACHI: President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Tanvir Sheikh has claimed that if the textile mills were to close, GDP would drop by 11 per cent while stock market capitalisation will decline by 18 per cent.

“The balance of payments will be badly affected and exports of about US$10.8 billion will decline which would show a total collapse of the external sector, he predicted while expressing great concern over the news that the Planning Commission (PC) has opposed incentives-laden relief package for the textile industry.

Sheikh said that Pakistan was the fourth largest producer and fifth largest exporter of textile products and removal of Pakistani textile from international market could create a worldwide crisis in the textile and clothing industry. He said that shortage of textile products could lead to the acceleration in the international prices of clothing and apparel products.

He rejected the statement that private sector did not make investment for its up-gradation and that the sector depended only on subsidies and packages without showing any positive outcome. He said that it was on record that the textile sector has invested more than $5 billion on modernisation and replacement of old plant and machinery and a major part of the investment was based on equity financing.

He further criticised the PC’s proposal for investment on the setting up of textile training centres. He mentioned that PC approach was far behind the present stage of textile industry and added the textile industry has set up two world-class institutions of higher education in textile - one in Karachi and the other in Faisalabad.

He said that many universities in private sector were offering BS, MS, BBA and MBA in textile. Degree in textile engineering is also being offered by the Pakistani universities. “The demanding degrees with specialisation in textile is an indicator that textile sector is providing and creating job opportunities for qualified persons.” He further added that it was also important that all the research based studies carried out by the leading national and international institutions and experts realise the importance of the textile sector and the need for relief packages.

Citing examples, he said that a well-known Swiss consultant recommended fiscal incentives for Pakistani textile sector while Japan International Cooperation Agency (JICA) has also indicated that Pakistani government’s support to the textile industry was relatively weak in comparison with the incentives provided by the governments of India, Bangladesh and Sri Lanka to their textile industries.

Quoting more examples, he said that according to a study conducted by Pakistan Institute of Development Economic, COMSTECH and the Higher Education Commission, textiles and clothing sector was facing a number of challenges.

“To address these challenges and to facilitate the transformation of the textiles sector into a strong, dynamic, and internationally competitive industry led by the private sector, the public sector must create an conducive environment through a business-friendly regulatory framework, appropriate incentives to the private sector, institutional support and provision of quality infrastructure,” Sheikh emphasised. All of these research reports and studies favour the genuine demand of the textile industry and in the light of all the observations it is hard to understand the logic behind the press statement issued by the PC, he concluded.

GDP to drop by 11pc if textile mills close: FPCCI
 
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SBP plans to raise Rs20bn in bond auction

Sunday, January 13, 2008

KARACHI: Pakistan’s central bank said on Saturday it planned to raise 20 billion rupees ($320 million) through an auction of long-term government bonds this month.

The State Bank of Pakistan said in a statement it planned to reopen an Aug 22, 2007, issue of the 3-, 5- and 10-year Pakistan Investment Bonds (PIBs) on Jan 29.

It would also re-open an Oct 31, 2006, issue of 15- and 20-year PIBs, in addition to reopening a Dec 22, 2006, issue of the 30-year bond, it said.

Settlement will be on Jan 31.

The 3-, 5-, 10-, 15- and 20-year PIBs carry annual coupons of 9.1, 9.3, 9.6, 10 and 10.5 percent respectively, while the 30-year paper carries a coupon of 11 percent.

This will be the fifth PIB auction to be conducted by the government in the 2007/08 fiscal year, which began on July 1.

The last PIB auction was on Nov 29, when the central bank sold only 2 billion rupees worth of 30-year bonds at cut-off and weighted average annual yields of 11.6198 percent and 11.6176 percent, respectively. At that auction, the central bank rejected all bids received for the 3-, 5-, 10- and 15-year PIBs, while it did not receive any bid for the 20-year bond.

SBP plans to raise Rs20bn in bond auction
 
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Steps soon to boost per acre rice yield

KARACHI, Jan 12: Prime Minister Mohammadmian Soomro has assured the rice exporters of taking immediate measures to increase rice production by increasing per acre yield which would be achieved by developing new rice seeds through extensive research and development.

He said that the rice research institutes at Dhokri and Kala Shah Kaku would be asked to give the desired results and Rice Exporters Association of Pakistan (REAP) representative would be put on their managements.

The prime minister was talking to a delegation of rice exporters at a hi-tea given in his honour by the former chairman of REAP, Abdul Rahim Janoo, recently.

He further said that the REAP delegation would soon be invited to Islamabad for a presentation on problems and issues faced by rice exporters and also welcome their suggestions.

On a point raised by a REAP member about the fate of RECP godowns at Pipri, the prime minister said soon some pragmatic action would be taken with regard to their utilisation.

Mohammadmian Soomro asked rice traders to strengthen hands of the government by bringing prices down in the domestic market and assured that all measures were being taken to improve law and order situation in the country.

He also promised to arrange a meeting of REAP delegation with the IG Sindh.

The prime minister said that the federal food and agriculture minister would be asked to hold a meeting with REAP members to discuss about rice variety 386 and also to find ways and means to increase exports without disturbing local market.

Abdul Rahim Janoo speaking on the occasion said the Mohammadmian Soomro is a patron of rice trade and visited REAP as Governor of Sindh, chairman of Senate and acting president.

He further said that Mr Soomro was always available to solve rice traders problems and help in getting Nooriabad’s Rice Zone.

Due to his afforts, Mr Janoo said all stakeholders of rice, including growers, millers and exporters, are now working in harmony in the larger interest of rice trade.

The prime minister was informed that REAP would achieve export target this year in value term because of high prices but export in quantity term would be down due to crop shortage.

Steps soon to boost per acre rice yield -DAWN - Business; January 13, 2008
 
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40 percent garments units closed down: high utilities cost, R&D subsidy shift blamed

ISLAMABAD (January 13 2008): The continuous increase in the cost of utilities and the shift of R&D subsidy towards the real 'research and development' has forced 30-40 percent garments producers to close their businesses, sources told Business Recorder here on Saturday.

They said that the increasing cost of utilities, like electricity and gas, and the grant of 6 percent R&D subsidy to the real 'research and development' of the textile sector instead of giving it to exporters, has forced the garments industrialists to close their factories to avoid any further losses.

The frequent interruptions in gas and electricity supply cause delay in meeting export orders. Therefore, to overcome the delay, the exporters have to send their consignments by air instead of sea which costs Rs 150 per roll of fabric, sources said.

According to Federal Bureau of Statistics, the country's overall trade balance stood at $1.089 billion in July 2007 against $1.12 billion in the same month of 2006. The export growth of Pakistan is not indicating a remarkable development for the last three years. There is just 6 percent R&D subsidy that is being given to the exporters.

With the 30-40 percent garments units' closure, about one million spindles of 160 textile mills are inoperative. In Lahore, Karachi, Faisalabad and Multan, most of the knitwear companies have already shut down.

The government has set export target of $19.2 billion for 2007-08, whereas in the first quarter of this fiscal year, exports grew at less than 5 per cent, to $4.25 billion, while imports grew by 8.5 percent, to over $8 billion.

While total share of Indian textile industry in its export earnings is 16.63 percent, Pakistan's textile industry share is more than 60 percent. Pakistan is giving just 6 percent subsidy to exporters for R & D while India has provided visible and invisible cash subsidies to its exporters in order to get the export target of $50 billion by 2010.

A textile exporter said that the Ministry of Textile has written letters to all textile industrialists that 6 percent subsidy, that was being given to the exporters in the name of R& D, would now be used in real 'research and development'. It means that now the textile exporters will not be paid subsidy on exports.

A committee has also been set up which will monitor whether the exporters are using this 6 percent in real 'research and development' or not. The committee will consist of representatives of 4 garment associations of Karachi, Secretary of Textile Ministry and the Chairman of FPCCI.

Business Recorder [Pakistan's First Financial Daily]
 
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CDWP approves 40 projects of Rs 69.3 billion

ISLAMABAD (January 13 2008): The Central Development Working Party on Saturday referred 10 development projects costing Rs 62.9 billion for approval to the Executive Committee of the National Economic Council (Ecnec) and approved 30 schemes worth Rs 6.4 billion.

The total foreign exchange component has been estimated at Rs 53.2 billion. The CDWP met here with Planning Commission Deputy Chairman Dr Akram Sheikh in the chair. The federal government will finance 32 projects costing Rs 45 billion. In infrastructure sector, the CDWP approved 15 projects costing Rs 54 billion with FEC of Rs 30.3 billion. In social sector the number of approved projects is 21 worth Rs 11.6 billion. In other sectors, 4 projects costing Rs 3.8 billion were approved, Planning Commission spokesman Mohammad Asif Sheikh said.

Speaking at a news briefing after the meeting, Sheikh said that 13 projects costing Rs 23.8 billion were approved on all over the country basis. Nine projects worth Rs 28.6 billion were approved for Punjab, 8 schemes worth Rs 5 billion for Sindh, 4 projects worth Rs 10.2 billion for NWFP, and 3 projects worth Rs 0.5 billion for Balochistan. One project was approved each for Azad Jammu and Kashmir, Fata and Northern Areas. The total cost of the three projects is Rs 2 billion.

Of the projects located in Punjab, 2 projects costing Rs 9.7 billion will be fully financed by the Punjab government. Of the 4 projects in NWFP one project will be fully financed by the government of NWFP. Of the 8 projects in Sindh, one project namely "development of infrastructure in various industrial estates in Sindh costing Rs 2 billion has been recommended on 50:50 cost sharing basis. Sindh government will fully finance 3 projects costing Rs 0.7 billion.

The New Balakot City Development Project costing Rs 12 billion will be financed from the Earthquake Rehabilitation and Reconstruction Authority (Erra) budget. The CDWP also cleared the Punjab government ADB-assisted project of 'Barani integrated water resources sector project' of Rs 6.3 billion and water and power ministry's scheme of 'power distribution enhancement project' costing Rs 20 billion.

Of the 40 projects, cost of 6 projects has been revised and their net addition in total cost is Rs 1.4 billion. In energy sub-sector the CDWP approved 3 projects worth Rs 20.51 billion. In physical planning and housing, five projects costing Rs 21.62 billion stand approved. In transport and communication, the meeting approved five development schemes worth Rs 11.45 billion. In water resources, 2 projects costing Rs 0.35 billion were approved.

The meeting approved 9 projects worth Rs 8.9 billion of the Higher Education Commission (HEC). Five projects Navtec schemes worth Rs 0.55 billion were also approved. The ministry of science and technology scheme of establishing textile testing and research center Faisalabad worth Rs 0.28 billion and Pakistan Atomic Energy Commission (Paec) scheme of establishing center for earthquake studies of Rs 0.14 billion were also approved.

Business Recorder [Pakistan's First Financial Daily]
 
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Korea offers support for technical institutions in Pakistan

ISLAMABAD (January 13 2008): Korean Ambassador Un Shin has offered technical assistance for technical training institutes to help increase technical workforce in Pakistan. He made these remarks after visiting Anjuman Faiz-ul-Islam Technical Institute, Rawalpindi.

The Ambassador said that Korea is not only ready to give technical guidance to such institutions but also provide employment opportunities to their students after completion of education. He appreciated the performance especially the technical and social services of the Anjuman, which it provided to orphans and the poor children during the last 40 years.

President of Anjuman, Mian Siddique Akbar, Vice President, Dr M D Khan, Secretary General, Raja Fateh Khan and Professor Niaz Irfan briefed the Korean Ambassador about the performance of the organisation. They also informed the distinguished guest about future plans and their implementation process.

Business Recorder [Pakistan's First Financial Daily]
 
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Business community to be compensated for losses suffered: Soomro

KARACHI (January 13 2008): Caretaker Prime Minister Mohammadmian Soomro has assured business community that after receiving Issani commission report the government would finalise its strategy to compensate all those who had suffered losses during violence erupted after the assassination of Benazir Bhutto.

He gave this assurance while talking to representatives of Karachi Chamber of Commerce and Industry (KCCI), Site Association of Industry (SAI), Federal B Area Association of Trade and Industry (FBAATI), Korangi Association of Trade and Industry (Kati), North Karachi Association of Trade and Industry (NKATI), Hyderabad Chamber of Commerce and Industry (HCCI).

Sources quoted the caretaker prime minister as saying that the government has already established a commission to ascertain actual losses and prepare a comprehensive report on it. Mohammadmian Soomro said that the commission has been given a task to submit its report on or before February 2, 2008.

The caretaker prime minister advised business community and others to cooperate with the commission and provide details of losses on or before January 21, 2008 to help the commission to finalise its report earlier. He said that the government has already decided to pay compensation to families of those who lost their life during these incidents.

Mohammadmian Soomro said that the government was determined to improve security arrangements in the country in general and in industrial areas in particular so that such incidents do not take place in future. Working capability of law enforcing agencies would also be improved, he added.

Expressing concern over mass scale looting and burning of property after the incident of December 27, 2007, he said that unprecedented behaviour was exhibited largely by those who had no sympathy for life and property.

Governor Sindh Dr Ishratul Ebad Khan, caretaker chief minister Sindh former justice Abdul Qadir Halepota, Governor State Bank Dr Shamshad Akhtar, Inspector General Police, Home Minister and secretary, Director General Rangers, President KCCI Shamim Ahmed Shamsi, Chairman Kati Shaikh Fazal-e-Jalil, Chairman FBAATI Idrees Gigi, Patron-in-chief NKATI Captain Moiz Khan, Chairman Kite Abdul Haseeb Khan and other high officials and business community representatives were present in the meeting.

Business Recorder [Pakistan's First Financial Daily]
 
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Load shedding leaves three million jobless

MULTAN (January 13 2008): All industrial units in Southern Punjab had closed their one shift due to persistent load shedding rendering more than one lakh workers jobless, said a labour leader Ashfaq Ahmed Khan while talking to newsmen here on Saturday.

He said that load shedding has forced over three million labourers on daily wages across the country to sit idle in their homes and wait till the power crisis is over. In addition, over 42,000 factory workers have also been affected and left without any regular sources of income, he added.

Because of heavy load shedding, many small factories are not working and more than three million labourers are sitting idle. "The main reason for this joblessness is privatisation of several public entities," he said, adding the private companies had reduced the number of employees and increased working hours without paying them extra money.

"Before the privatisation of Pakistan Telecommunication Limited (PTCL), the total number of its employees was 65,000 but after privatisation, just 30,000 employees are now working in the organisation," he said.

He said Habib Bank was the biggest bank of Pakistan with 1,425 branches in the country and almost 48 world-wide branches but it was sold out at a throwaway price of Rs 22 billion. "The number of its employees has now been reduced to 7,000, which is four times less than what it was before the privatisation," he added.

He said flour price had reached Rs 30 per kilogram, which was beyond the reach of poor labourers. "In 116 cities, people stand in queues for hours to get flour but mostly return empty handed," he said.

He said that government had fixed the minimum salary of unskilled labourers at Rs 4,600 per month but the mill owners were paying them much lower wages, adding, the government had banned unions, which stood up for rights of under-paid and unemployed labourers.

Business Recorder [Pakistan's First Financial Daily]
 
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Poverty Alleviation Fund changing the lives of poor: World Bank

FAISALABAD (January 12 2008): Pakistan Poverty Alleviation Fund (PPAF) is making a difference in the life of the poor in the country and 1.5 million micro-credit loans (average loan-size US $150) have been provided benefiting nearly 9 million people, said updated World Bank report.

World Bank observed that the PPAF programme is impacting over 10 million people. PPAF has mobilised over 66,000 community organisations (COs) in 27,000 localities across 111 districts in the country. Mobilised communities are helping themselves and accessing services from civil society, government and markets.

According to a World Bank report, over the last 7 years PPAF has driven the micro-finance sector growth from 60,000 borrowers to more than 1.25 million active borrowers in the sector, while "Skill Development and Capacity-building" also improving. Over 200,000 people trained by PPAF in various skills including management, financial, mechanical and technical skills, water conservation, agriculture, horticulture, livestock, and marketing etc, said report.

The report disclosed that more than 13,000 small scale village-based projects have been identified, constructed and maintained by communities right across the country benefiting nearly 6 million people. These projects mainly include drinking water supply schemes, drainage and sanitation, irrigation, roads, culverts and small bridges. PPAF is also doing more innovative schemes that include: Integrated Areas Up-gradation Projects, Drought Mitigation Projects and Technological Innovative Projects, including Reverse Osmoses Plants, Drip Irrigation, and Solar Energy etc. Besides providing social benefits and improving the rural environment these projects have saved significant amounts in health related expenses in addition to providing job opportunities for local communities, WB report mentioned.

WB observed that PPAF supported projects are labour intensive and have generated significant amounts in wages. Health and Education (a recent pilot intervention): nearly 100 new education and health facilities opened by PPAF in the rural areas providing high quality services and benefiting primarily women and girls.

Commenting over the "Earthquake Restoration and Rehabilitation", WB report said that over 100,000 houses and 300 schemes are being reconstructed in the earthquake affected areas, with a special focus on the vulnerable, and disabled. Nearly 20,000 people trained in earthquake resistant construction methods, directly resulting in over 70percent compliance with earthquake standards for all houses under construction. PPAF is also regularly involved in relief work, including for the earthquake victims and more recently the flood affected; and has also initiated a special programme for the fragile coastal areas.

PPAF's institutional mechanism is seen as a best practice public-private partnership model; with its solid governance structure, private sector management and transparent funding mechanism and is being replicated in other Government programmes that are trying to deliver services to the poor. These replications range from education delivery in Balochistan, to rural telecom services across the country. Social Mobilisation has been mainstreamed in public policy and is now part of the poverty reduction policy and the Mid-term Development Framework of the Government.

PPAF has moved beyond being just a project and is now considered the private sector arm of the government's poverty alleviation agenda. The massive earthquake reconstruction work that the Government has assigned speaks of the trust and confidence that it has in the institution.

WB observed that PPAF's investment in civil society (it has 70 civil society partners across the country) has resulted in a new found confidence and greatly enhanced capacities and capabilities of the sector to do much more for the poor. It has also enabled them to leverage support from provincial and local governments; commercial banks and other donor.

Investing in building institutions of the poor that are inclusiveness; participatory; and well governed has high pay-off; for it builds their confidence and social capital, gives them voice and empowers them to participate as active and informed citizens in the development and political process. It ensures better provision of services and delivers far more profound and sustainable development outcomes.

PPAF's long term strategy is to cover all the villages and hamlets in the poorest districts of Pakistan through a comprehensive range of activities. There will be a major effort to build institutions of the poor in these districts, build their capacity and provide occupational skills training leading to exponential growth of micro-enterprises and meeting the key infrastructure needs of these villages, said WB report.

WB report stated that the key challenges ahead include: ensuring that the institutions of the poor continue to be underpinned by the core values of inclusiveness, participation and good governance; the outreach of micro-credit in a potentially huge market; continuing support of the government and donors to this pro-poor agenda and meeting the expectations and galloping demands of the poor; and linking in a more meaningful and productive manner to the local, provincial and federal government structures and programmes.

According to WB report, poverty remains a serious concern in Pakistan, particularly in its rural areas. Inadequate access to basic services and financial and other resources; weaker communities, particularly the exclusion of women from the public sphere and the development process; low social capital; ethnic and religious strife; a spate of natural calamities in recent years; have all contributed towards the persistence of poverty in the country.

The World Bank funded Pakistan Poverty Alleviation Fund Project (PPAF) is designed to reduce poverty and empower the rural and urban poor in Pakistan through the provision of resources and services to the poor, especially women. This is being achieved through an integrated approach that includes building institutions of the poor and then providing them with micro-credit loans; grants for small scale infrastructure projects; training and skill development and social sector interventions. PPAF has also contributed significantly in rebuilding lives, fostering resilience and restoring assets of the poor who have suffered from the earthquake and drought.

The PPAF programme is impacting over 10 million people. PPAF has mobilised over 66,000 community organisations (COs) in 27,000 localities across 111 districts in the country. Mobilised communities are helping themselves and accessing services from civil society, government and markets. PPAF's investment in building institutions of the poor, that gives voice, empowerment and nurtures social capital and trust amongst communities is resulting in; increased collective and self-help initiatives; increased incomes; increased food consumption; increased expenditure on utilities; increased assets acquisition including household repair; and increased social outcomes including improved female mobility and their enhanced social status. (All verified through third party evaluations).

PPAF mobilised communities is also leading to their political empowerment. Community members have contested local government elections and more than 500 members have been elected.

Business Recorder [Pakistan's First Financial Daily]
 
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Acer achieves 335.1 percent growth

ISLAMABAD (January 13 2008): Acer Computer is the number one IT vendor in Pakistan with a market share of 6.6 percent, says IDC, the international research and analyst house. Acer notebooks have been very well received in Pakistan. Acer's year-on-year growth for notebooks for Q3 of 2007 was 335.1 percent, says a press release.

"Acer's state-of-the-art productline and innovative technology have helped establish Acer as the leading IT brand in a very difficult market," said Zahid Mahmood, Country Sales Manager Pakistan and Afghanistan, Acer Computers Middle East Ltd. "Acer position in the market is a direct result of our very successful channel business model, our partners have contributed heavily to Acer's success," he added.

IDC's latest figures show that Acer Computer is the vendor of choice both for consumers and business users. Overall, for desktops and notebooks, the company holds the number one position in Pakistan with a market share of 6.6 percent and year-on-year growth of 154.7 percent, whereas the market growth has only been between 30 to 40 percent.

An end-user breakdown of sales in the Pakistani PC market by IDC revealed that the education sector contributed to 6.7 percent of sales. Government spent 9.9 percent whereas small office and home's jointly constituted 29.2 percent. Small and medium businesses contributed a massive 30.6 percent whereas large and very large businesses spent 23.7 percent.

Business Recorder [Pakistan's First Financial Daily]
 
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Rs80bn cut in development budget likely

ISLAMABAD, Jan 13: The government is considering reducing development budget by up to Rs80 billion or 15 per cent to partially offset the rising fiscal deficit.

Informed sources told Dawn that a number of proposals were being worked out for the required budgetary adjustments by the ministry of finance. It suggests that the government will need to reduce the allocation for the Public Sector Development Programme along with slightly higher fundraising through national savings schemes to bridge the gap between available resources and expenditures.

The federal and provincial governments were able to utilise Rs128 billion in the first quarter (July-September) of the current fiscal year. Another Rs100 billion was utilised by project executing agencies till December 31, 2007.

The second quarter funds utilisation usually remains higher than the first quarter because of a pick-up in implementation activities after the start-up problems.

The sources said that the pace of implementation had slowed down in the recent weeks because of the elections and overall security environment which also resulted in the evacuation of foreign engineers from the project sites.

Officials at the finance ministry expect the overall development expenditure will remain more or less at the last year level or at best touch Rs450 billion.

Caretaker finance minister Dr Salman Shah said the government had half a year to make fiscal adjustments which may include a reduction in the development budget in the last quarter of the financial year because the government had to meet the overall objective of restricting fiscal deficit at four per cent of GDP.

The government had allocated an amount of Rs520 billion for the current year’s PSDP (2007-08) which was about 25 per cent higher than the previous year’s Rs415 billion.

An official at the Planning Commission said that it was yet to receive proposals for a reduced PSDP, but agreed that a mid-year review of the overall economic situation, including the development programme, was currently in the final stage.

He said that there was a likelihood that releases for slow-moving projects or those failing to take off owing to various bottlenecks might be withheld on the basis of mid-year review.

Last year, the federal and provincial governments were able to spend about Rs435 billion or five per cent of GDP. This year, the government has transferred about 25 per cent of total funds to the provincial governments and federal executing agencies at the beginning to help them start the projects.

The utilisation of Rs128 billion funds in the first quarter of this year was, therefore, almost double the Rs68 billion utilised during the same period last year.

As a result, the release of funds in the first three months of the current year stood at 1.3 per cent of GDP, compared with 0.8 per cent of GDP during the same period last year.

Rs80bn cut in development budget likely -DAWN - Top Stories; January 14, 2008
 
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