Pakistan Economy - News & Updates - Archive

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Sugar mills can produce 2000MW​

ISLAMABAD, Aug 13: Federal Minister for Water and Power Raja Pervez Ashraf has said that the sugar industry will be provided every facility to generate electricity from the indigenous resources to meet the power requirements in the country.

He made these remarks on Wednesday while talking to a delegation of Pakistan Sugar Mills Association (PSMA) led by its chairman Shunaid Qureshi. Secretary and adviser of the Ministry, managing director Private Power Infrastructure Board (PPIB) and other senior officials were also present.

The PSA chairman informed the minister that 77 sugar mills were producing 12 metric tons of baggase and were capable of generating over 2,000MW from co-generation power plants. He said that initially the industry can generate 1,000MW within two years.The minister appreciated the role of PSMA in initiating co-generation power projects and said that the government would provide maximum incentives and resolve all the pending issues in this regard.

He said that the government was determined to use all options to produce electricity at affordable prices and the co-generation project by the sugar industry is a major step towards achieving this goal. He said that the co-generation will also promote power generation through environmental-friendly manner.

He was of the view that many countries around the world were using co-generation technology to produce electricity from bye product of the sugar industry.

The minister expressed the hope that the joint efforts both by the government and the industry would help the country to overcome the energy crisis. He also directed the PPIB to process the proposals submitted by the sugar industry for co-generation projects on a fast track basis.

Sugar mills can produce 2000MW -DAWN - Business; August 14, 2008

 

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Looking at brighter side of economy​

KARACHI, Aug 13: Foreign remittances in the sum of $627 million poured into the country during July. That was the highest single month inflow in the history of the country. Given that the rupee had depreciated by 7 per cent during the month against the greenback, the confidence of the overseas workers in the country seems to be astounding. But is that misplaced?

Among the host of economists who habitually pronounce gloom and doom for the economy, it is difficult to find a few who look at the sunny side of the picture. Most are focused on the dwindling foreign exchange reserves; mounting trade and fiscal deficit; depreciation of the rupee and the soaring inflation.

“The reason that the foreign remittances have soared,” says an economist that looks at the sunny side of the country’s economy “is that those sitting outside the country are looking at the country in the global context”. Inflation is a worldwide phenomenon and so is the weakness of the currency and the stock market meltdown. South Korea has witnessed inflation at 26 per cent; Vietnam at 30 per cent and even India is experiencing double digit inflation.

Pakistan’s macro-economy numbers look dull due to the pass through of high oil prices. “In the past four months, a staggering 71 per cent impact of the higher oil prices has been passed on to the consumers,” says the economist. He is confident that from January 2009, the inflationary figure would dip down to single digit as the economy would have already borne the full brunt of the oil pass through and base of commodity and food prices would rise to international level.

Those given to pull long faces at largely deceptive macro-economic indicators also fail to look at the tax collection figures. They chuckled when the country projected a 25 per cent growth in tax revenues during the ongoing financial year, but all have since been silenced by the July tax collection numbers, which show a stunning growth of 30 per cent year-on-year. In spite of all the political turmoil there are evidences to prove foreigners’ confidence in the country and its future.

“All five mobile companies operating in the country are of foreign origin; China Mobile has recently committed $800 million and Maybank invested another $950 million in acquisition of MCB Bank shares; Barclays the international banking giant has cited sound economic outlook for the country and overseas interest has been visibly expressed in the power sector,” says Muzzammil Aslam, group economist at KASB/Merrill Lynch. Does that show that foreigners are shaking in their shoes at the mention of investment in Pakistan?

While Pakistani workers are sending in shiploads of dollars, the blame for the depreciation of the rupee falls squarely on the exporters, who, a money manager says have been stalling the receipts in greed of a higher exchange rate. But even the fall in currency value is not limited to the rupee; the all-too-mighty dollar has depreciated by 20 per cent against the euro and yen, while only last week the euro was beaten down by 7 per cent by the dollar.

And what of the stock market? The Karachi Stock Exchange has dropped 35 per cent from its index peak of 15,760 points in mid-April. Compared to that Chinese stocks have plunged by 50 per cent in spite of an 11 per cent economic growth and the Dalal Street in Mumbai is down 40 per cent. For all the hue and cry over the outflow of foreign investment from the equity markets, the fact remains that only $180 million were pulled out by the foreign investors in the difficult days of July-Aug, which is barely 4 per cent of the total foreign portfolio investment of no less than $4 billion in the Pakistan’s stock markets.

The country is in the adjustment phase, which would necessarily entail volatility in the value of the rupee and the capital markets. Muzzammil Aslam points out that Pakistan’s micro imbalances were driven by higher oil prices. But with the recent meltdown in crude and commodity prices, the dawn of 2009 should see trade deficit narrow as exports improve with currency adjustment and imports, which would be costlier would stand restrained, already evidenced in the 42 per cent drop in July auto sales numbers; reduction in import of oil, wheat and metals would cut down import bill the government’s fiscal deficit would be reigned in as oil price pass through might be over. That would result in decreased borrowings from the central bank, while inflows of foreign exchange from privatisation, remittances, Eurobonds and higher tax collection numbers would have a soothing effect on the economy.

There are again talks of country picking up the begging bowl and knocking at the doors of IMF. Given a semblance of normalcy in home politics and continuation of liberalised macro-economic policies, those looking at the sunny side, hope that the country would step back on the road to a sustained growth number. If good days are so near as the dawn of next year, is it wise and respectable to ask IMF for a dole out? Economist Aslam says that a dollar fetched from foreign investment is much more productive as it employs more capital and increases economic activity than borrowings from international donor agencies, such as IMF, which touch their purse strings only after the country accepts harsh conditionalities.

Looking at brighter side of economy -DAWN - Business; August 14, 2008

 

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Present 33.81 percent food inflation may rise in Ramazan: survey​

ISLAMABAD (August 14 2008): The present skyrocketing food inflation, estimated at 33.81 percent, has raised serious concerns about its likely rise during Ramazan, according to a survey conducted by Business Recorder. Ramazan, in recent years past, has been associated with high food prices through profiteering by the wholesalers as well as the retailers of food items associated with Iftari like samosas and pakoras.

The survey also said that consumers are extremely apprehensive about the likely rise in prices of kitchen items during Ramazan. The consensus was that inflation of food items may double during Ramazan.

Ninety percent of those asked stated that the increase in the prices of essential food commodities would result in a shortage of these items in the domestic market leading to an artificially widening gap between demand and supply.

Those polled by Business Recorder exhibited anger over what they termed was the lack of effectively of the government's efforts to control prices. Shopkeepers and vendors are looting us by selling food commodities at highly inflated prices, they lamented. Majority of those asked stated that the main reason behind the price-hike was a flaw in the price control mechanism of the government.

According to the Federal Bureau of Statistics, CPI inflation in July 2007 stood at 6.37 percent as compared to 24.33 percent in July this year. While taking a round of various markets at different locations in the capital it was ascertained that fruit prices rose from Rs 5 to Rs 15 per kg.

Apple was selling from Rs 60 to 80 per kg. Bananas ranged in price from Rs 35 to Rs 70 per dozen. Pomegranates were being sold at Rs 90 to Rs 130 per kg whereas grapes were selling from Rs 90 to Rs 120 per kg. The shopkeepers, when asked whether the price differential was due to the location of their stands, they denied it and alleged that it was due to quality differential.

A price differential was also evident with respect to different vegetables at various locations, for example potato was selling at Rs 35 to Rs 40 per kg, onion between Rs 20 to Rs 26 per kg, tomatoes from Rs 38 to Rs 40 per kg, garlic from Rs 55 to Rs 60 per kg, and ginger from Rs 75 to Rs 95 per kg.

Different varieties of gram pulse were being sold at Rs 70 - Rs 85 per kg while Dal Masoor was available in the market at Rs 100 to Rs 110 and lentils pulse was being sold at Rs 120 to Rs 140 per kg. The price of 20-kg of gram flour of various brands was between Rs 420 and Rs 450, while 10-kg flour bag was being sold at Rs 220 to Rs 250. On the other hand, 'A' category ghee 16-kg tin was sold at Rs 2,110, 'B' category 16-kg ghee tin was available at Rs 1,980.

Most of the vendors and shopkeepers said that the main reason behind the increase in the prices of food commodities is the supply and demand gap. For example, sugar prices are increasing in the domestic market with each passing day because of the increase in the demand for soft drinks in summer. They said that it is difficult to tell that whether in Ramazan the prices of food commodities would increase or decrease, as it will be based on their demand and supply in the domestic market.

Business Recorder [Pakistan's First Financial Daily]

 

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'Food security a growing concern for Pakistan'​

FAISALABAD (August 14 2008): Food security has emerged as a burning issue in the country, as prices of essential food items have increased tremendously. According to Dr ME Tasneem, Chairman of the Pakistan Agricultural Research Council, the price of wheat flour is up 64 percent, basmati rice up by 104 percent and the price of grain is up by 60 percent.

While presiding over a meeting of the subcommittee of the Food Security Taskforce, the scientist also mentioned that Masoor prices have increased by 134 percent, potatoes cost 29 percent more, milk 18 percent and broiler live 29 percent while the price of vegetable oil has increased by 56 percent.

During the meeting, held at New Syndicate Hall, Tasneem pointed out that during the last year the international food price index rose by nearly 40 percent as compared with 9 percent for the year before that. Presenting the agenda and objectives of "Medium-term Research Agenda and Agricultural R&D", he said that the committee should suggest measures to increase food production.

This could be done through designing basic and applied research priorities, monitoring the extend of technology adoption, reforming institutional arrangements for input and service delivery and by suggesting areas of food policy research for research and development strategies.

Dr Tasneem informed the meeting that in the last four decades of the 20th century, Pakistan witnessed an unprecedented technological and economic transformation, enabling the country to achieve food self-sufficiency, triple agricultural exports, reduce poverty, increase income levels, and improve the quality of life of its populace.

Business Recorder [Pakistan's First Financial Daily]

 

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WFP provides $214 million to help 16 states including Pakistan​

UNITED NATIIONS (August 14 2008): The UN World Food Programme (WFP) has announced the roll-out of a 214 million dollars response to help millions in 16 countries, including Pakistan, hit hard by high food and fuel prices.

The funds would provide critical assistance by providing life-saving food rations to highly vulnerable groups, continuing to feed school-aged children even while school was out, and giving supplemental food to pregnant women and young children whose mental and physical development was at stake, the agency said.

WFP also aimed at expanding food aid to urban areas hardest hit by high food prices, including through cash and vouchers, and to support small farmers and markets in countries where the agency will purchase food assistance locally, through the initiative.

"With hunger on the rise, we are doing our best to stream incoming contributions to the people most in need in Africa, Asia and the Caribbean," said WFP Executive Director Josette Sheeran. "It is essential to launch a bold new set of responses to stem a full-blown hunger and nutritional crisis."

She noted that impoverished families that already spend more than 60 percent of their income on food were eating less, buying less nutritious foods, cutting out education and healthcare, and taking on more debt.

"Food prices are not abating, and the world's most vulnerable have exhausted their coping strategies," she said, adding: "Our action plan is targeted and customised to help the most vulnerable meet their urgent needs." The new funding will assist people in Pakistan, Djibouti, Ethiopia, Ghana, Guinea, Haiti, Liberia, Mauritania, Mozambique, Nepal, Senegal, Somalia, Tajikistan, Uganda, Yemen and the occupied Palestinian territory.

At the World Food Security conference in Rome in June, WFP announced a 1.2 billion dollars cash package for 62 countries hit by high food prices. As a result of the rise in food prices, WFP's budget to reach 90 million people world-wide in 2008 has risen from 3.1 billion dollars to nearly six billion dollars. So far, the voluntarily-funded agency has raised about half of its budget for this year, including through a historic 500 million dollars donation by the Saudi Government earlier this year.

Business Recorder [Pakistan's First Financial Daily]

 

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Power generation: Soomro for enhancing co-operation with Russia​

ISLAMABAD (August 14 2008): There is wide scope for further expansion and consolidation of business and trade relations between Pakistan and the Russian Federation, especially in the field of power generation to the mutual advantage of both the countries, observed Chairman Senate Mohammedmian Soomro.

He was talking to the Ambassador of the Russian Federation to Pakistan, Sergey N. Peskove, who made a farewell call on him at his residence here on Wednesday. The chairman said that promotion of economic relations between the two countries and greater co-operation between their private sectors would benefit both the countries. 'It is important to boost our trade and economic relations by inducting the respective private sectors, which are very keen to explore new avenues', he added.

The Ambassador, welcoming the idea, observed that Russia attaches great significance to its relations with Pakistan as both are neighbouring countries, having great potential to improve the quality of life of their people. He said that Russian businessmen and entrepreneurs are keen to expand business relations with their Pakistani counterparts.

He suggested frequent exchange of business delegations and closer interaction with the Federations of Commerce and Industry of the two neighbouring countries. He particularly mentioned that Russia can help Pakistan overcome its present energy and power crisis by undertaking construction of turbines for small power stations as well as building power stations.

The chairman said with the increase in population and development of industrial sector, the demand for electricity has increased manifold. Thus, Pakistan could be an attractive destination for all desirous of investing in the energy sector as it offers lucrative returns.

He said that joint ventures could be undertaken in this field since the demand for electricity and energy is expected to increase further in the years to come. He said the country continues to strive for more economic ways of power generation.

The chairman also emphasised the need for greater Parliamentary exchanges between the two countries. The Ambassador thanked the chairman and the government of Pakistan for the co-operation and hospitality extended to him during his tenure here and said he enjoyed his stay in Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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Multi-national oil & gas companies in Sindh: resolution adopted to ensure jobs for locals​

KARACHI (August 13 2008): Sindh Assembly on Tuesday unanimously pass a resolution moved by MPAs Nadeem Ahmed Bhutto and Dr Sikandar Mahendro from treasury benches. Through the resolution, the Assembly resolved and recommended to the Government of Sindh to approach the federal government to ensure the appointment of local people of Sindh in multi-national oil and gas companies in accordance with the agreement executed in this regard.

Moving his resolution Nadeem Bhutto said that Sindh province contributes 69 percent of oil and gas explored but neither the oil and gas companies give jobs to locals nor carry out socio-economic activities for them.

He alleged that these companies are not implementing the agreements made with Oil and Gas Ministry. His resolution was fully supported by MPAs Saleem Khokhar, Humaira Alvani, Farheen Mughal, Dr Sikandar Mahendro, Heer Soho, Ali Ahmed Pattafi, Rafiq Bhambhan, Shamim Ara Panhwar, Najmuddin, Sharjeel Memon, Jam Saifulllah Dharejo and others. They all defended the points raised by Bhutto and demanded that gas should be supplied in all those UCs where gas has been found and the local people should be provided the socio-economic facilities of health, education, recreation etc.

Sindh Culture and Archaeological Department has written letters to Federal Government to hand over control of some 132 archaeological sites to Sindh Government for their maintenance. This was stated by Sindh Minister for Culture and Tourism, Sassui Palejo, while replying to a question of opposition Arif Mustafa Jatoi during question hour.

The 2-day Sindh Assembly session commenced today with Speaker Nisar Ahmed Khuhro in the chair. Since it was Tuesday, it was private members day. The House will take up and pass a resolution on Wednesday in relation to impeachment of the President.

Business Recorder [Pakistan's First Financial Daily]

 

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Investment at KEPZ emphasised​

KARACHI (August 13 2008): In order to elaborate the investment opportunities available to the Information Technology/Telecommunication Industry at the Karachi Export Processing Zone (KEPZ), the Export Processing Zone Authority (EPZA) is participating in the '8th ITCN International Exhibition & Conferences' at Expo Centre Karachi from August 11-13, 2008 at Hall No 3.

On the second day of the conference, Chairman EPZA Kamran Y Mirza chaired an exclusive session on 'IT & Business Outsourcing'. Country General Manager IBM, Humayun Bashir who is also on the board of directors of EPZA, delivered a presentation. The seminar was also addressed by representatives from Oracle, Microsoft, TRG and Systems Ltd.

At the 8th ITCN Exhibition, emphasis has been given on the investment opportunities available at the KEPZ, which is located adjacent to the Landhi Industrial Area. The zone is ideally located to reach the markets of Middle East, Far East, Africa, Europe, America and Central Asia. KEPZ consists of three phases including fully operational KEPZ Phase I with an area of 211 acres and KEPZ Phase-II with an area of 94 acres. KEPZ Phase-III has an area of 200 acres, which is right now in planning stage.

Business Recorder [Pakistan's First Financial Daily]

 

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Wateen recognised as pioneer in telecommunications​

KARACHI (August 14 2008): The world's largest business technology leadership magazine, CIO Pakistan's local edition recognised Wateen's CEO, Tariq Malik, for his leadership and vision in increasing broadband penetration and making IP-based communication accessible across country. The local edition of CIO was officially launched in country on 5th of August and acknowledged 16 pioneers from the local industry who have been making an impact in country.

Tariq Malik, CEO of Wateen said, "It is an honour for Wateen to be recognised. We are indeed a young company but the fact that we have established many milestones, the encouragement from the industry helps. We still have exciting plans and will continue to meet the standards that we have set." CIO Pakistan Editor-in Chief said, "Wateen has done great work as far as spreading the awareness of WiMAX and its other services. Their young team has allowed people to realise the potential of broadband in Pakistan again."

Business Recorder [Pakistan's First Financial Daily]

 

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Foreign investment in local bourses drops 8.3pc in 6 months ​

Friday, August 15, 2008

KARACHI: The Foreign Portfolio Investments (FPIs) on Pakistani bourses has notably declined by 8.3 per cent in the last six months to $4.4 billion. At the end of February 2008 the net inflows in the country’s stock markets stood at $4.8 billion.

The importance of taking last six months period (March to date) statistics is that none of these consecutive months could fetch inflows in net and cumulative outflow in the said period stands nearly at $400 million or 8.3 per cent.

Prior to this, February 2008 was the last month that had attracted $123.4 million to the country’s bourses and had inflated the size of overseas investment to $4.8 billion here.

According to analysts February was the month of parliamentary election in the country - a month of hopes for investors’ community.

The coalition government, however, failed to deliver what the investors were expecting from them on economic front. Lawlessness and political instability propelled the country into an economic chaos, thus, paving the way for foreign investors’ exit, they added.

Sajid Bhanji, VC-Capital Market at Arif Habib Securities, said that the killing of Benazir Bhutto, former prime minister, in last December created a leadership and political vacuum in the country.

The changing circumstances of lawlessness increased the sense of insecurity and political instability made the people socially depressed. Subsequently, economy took brunt of this entire situation, he added.

Accordingly, all time high twin trade deficits mounted pressure on local currency and the loss of investors’ confidence in government to set the falling economy back on rails was last nail in the coffin.

Since January 2008, the rupee has depreciated by over 17 per cent to Rs75.20 against one dollar to date. In the open currency market also briefly crossed Rs76 a dollar here on yesterday (Thursday), he mentioned.

Bhanji added that this imbalance in rupee-dollar parity in the region and moreover falling dollar in other major world currencies like Euro worked like two-sided sharp sword here in Pakistan.

The sub-prime mortgage crisis in USA last October and its impact on world economies and currency exchange rate turmoil at world convinced foreign investors not only in Pakistan but also in other countries including India to drain out their funds from developing countries, he added.

He recalled the early 90’s era when country was facing the dollarisation phenomenon. He added in those time people were converting their liquidity into dollar or investing in countries like Dubai.

“The same situation we are facing these days, as the hints of converting local currency into the dollar and investing abroad were echoing these days again,” he said.

The emerging situation helps recall statement of Dr. Kaiser Bengali, economist, that the government would devalue currency to narrow down the widening twin trade deficits. His prediction came true, as rupee had depreciated by more than 17 per cent to date since January for whatever are the causes.

Majority of analysts have time and again said that an increase of 250 basis points in central bank’s discount rate to 13 per cent in the last two months and mounting pressure on rupee (besides political instability) were the two main causes of depleting foreign portfolio investment here in the country.

Under the review period, the local bourse - mainly the Karachi stocks market - remained extremely volatile for the same two reasons that convinced foreign investors to exit.

Hopes pinned on newly installed government in late March had helped KSE benchmark KSE 100-share Index to reach all time high at 15,676 points on April 18. But since then, Karachi bourse has dropped 5,774 points or approximately 37 per cent to date. During the same period, a decline of near Rs1,700 billion from overall market capitalisation was also recoded that fell to Rs3.091 trillion at current.

Trends in Foreign Portfolio Investments

Net Buy/(Sell)

Month Gross Buy ((Rs) Gross Sell (Rs) In Pak Rupee In US Dollar

Mar-2008 23,391,705,335 -30,273,477,090 -6,881,771,755 -110,996,319

Apr-2008 26,796,819,009 -27,900,759,493 -1,103,940,484 -17,407,181

May-2008 23,347,096,666 -26,636,393,163 -3,289,296,497 -51,730,240

Jun-2008 13,997,836,446 -21,747,876,865 -7,750,040,419 -115,682,642

Jul-2008 7,727,761,171 -13,718,731,465 -5,990,970,294 -85,082,863

Aug-2008 3,189,304,776 -4,303,329,881 -1,114,025,105 -15,439,920

Source: NCCPL website. Value in dollar, mentioned in last column of this table, is based on that respective moth exchange rate.

Foreign investment in local bourses drops 8.3pc in 6 months

 

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‘SBP playing key role in bolstering economy’ ​

Friday, August 15, 2008

KARACHI: The State Bank of Pakistan (SBP), since its inception, has been making all-out efforts with sincerity and honesty for the development of the country’s economy.

The banking industry has made a significant progress in recent years and the SBP has taken a number of measures ensuring that people at large reap the benefits of economic growth, sustainability of growth momentum and competitive environment.

This was stated by SBP Governor Dr Shamshad Akhtar while speaking at a flag-hoisting ceremony held at the SBP on Thursday marking the 61st Independence Day.

She said the Independence Day provides the nation with an opportunity to reiterate its commitment to the homeland. She highlighted various unique features and achievements of the country and said “we all are proud to be Pakistanis.”

Being a leader of a national institution, she admitted that there were still several impediments on the way to progress. “Partly we are also responsible for that as we have not aligned ourselves with the requirements of the 21st century,” she added.

“We have yet to achieve self-reliance in all sectors, which is a hallmark of a sovereign and vibrant nation,” she emphasised.

Paying rich tributes to forefathers of the nation, the SBP governor said this special day reminds the country’s people of elders, who under the dynamic leadership of Quaid-e-Azam Muhammad Ali Jinnah, scarified their lives and as a result of their unparalleled efforts, Pakistan came into being. She also paid tributes to the national heroes, who played a key role in the independence of the country.

The ceremony was attended by Mansur-ur-Rehman Khan and Yaseen Anwar, deputy governors, senior executives, directors, officers and staff of the bank besides families of employees.

‘SBP playing key role in bolstering economy’

 

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China to fully finance Diamer Bhasha dam in Pakistan​

​

Friday, 15 August 2008

In a major development regarding the construction of Diamer Bhasha dam, China has agreed to completely finance the $8.5 billion project, sources in Water and Power Development Authority (WAPDA) told on Thursday.

German Company Lemhyer has issued final draft of the dam in which the company has projected the cost of dam at $8.5 billion against the earlier projected cost of $6.5 billion in the year 2005. Government wants to start the construction work on Bhasha dam in the year 2009, sources added.

Pakistan has turned to China regarding the financing of the project after World Bank refused to add the project in the $1.4 billion aid for current financial year 2008-09. They further said that World Bank lending rates are higher and China would provide loan on lower rates. Pakistan had submitted the draft of detailed engineering design of the dam and in response China has agreed to provide financing for the said project. Sources informed that China has also great expertise in the working on big dams and it has expert labour force and machinery for such purposes.

Chinese government has offered Pakistan to provide skilled labour for the construction of the Bhasha dam as it has 17,000 skilled labourers who have worked on three Gorges Dams in china, which are generating 30,000MW electricity. They said that China has also assured that it would hire a company to provide financing to Pakistan for the construction of the dam. Earlier, Pakistan was looking at Asian Development Bank (ADB) and World Bank.

Government has allocated Rs 200 million in Public Sector Development Programme (PSDP) 2008-09 for Bhasha dam.

The government has started work to develop infrastructure for communication link of Bhasha dam and in this regard the work on a Karakuram Highway to link Bhasha dam was also in progress. Karakuram Highway would be upgraded at cost of Rs 11.578 billion and government has released Rs 2 billion for the said project.

Final draft of Bhasha dam: German Company Lehmar has issued final draft of Diamer Bhasha dam which indicated that as many as 37,000 families would be affected following the construction of the dam. Lehmar has submitted final detailed engineering design to the Water and Power Development Authority (WAPDA) in which it has recommended the government to set up nine model villages near Gilgat to accommodate the affected families. The company has also recommended allotting five Marlas for residence per family and six canals to one family for agriculture purpose.

According to the design, dam would generate 4500MW power and its water storage capacity would stand at 7.5 million acre feet (MAF) whereas dam would have four turbines and two powerhouses.

 

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India keen to invest in gem, jewellery sector​

KARACHI: Indians are keen in doing business with the gemstone sector and traditional stone studded jewellery of the country, Pakistan Gems and Jewellery Development Company (PGJDC) said Thursday.

Pakistani Gems and Jewellery sector’s 68-member delegation visited India International Jewellery Show 2008 (IIJS Mumbai 2008), from August 7 to August 11 2008, has received a great demand for Pakistani gemstones, mineral specimen and traditional Pakistani stone studded jewellery in the Indian market. Member Board of Directors PGJDC, Ambarine Bukharey who was also the coordinator for the Pakistani delegation to IIJS, said, “A great demand for Pakistani gemstones, mineral specimen and traditional Pakistani stone studded jewellery has been re-discovered in the IIJS this year.”

She said having learnt about the great amount of efforts that PGJDC was putting in for the development of the gems and jewellery industry, especially in the areas of improving lapidary skills, mining and technology up-gradation of gemstones, Indians have planned to further their business with Pakistan’s gem and stone sector.

“The provision of complete zero-rating taxation to the gems and jewellery sector would increase export of value added products by the Small and Medium Enterprises (SMEs),” she added.

The sector is enjoying zero-rate customs duty and sale tax on imports of gold, silver, platinum, palladium, diamonds and gemstones. staff report

 

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FBR to seek Rs 188.81 million for 20 PSDP projects​

ISLAMABAD (August 15 2008): The Federal Board of Revenue (FBR) would approach the Planning Commission and the Finance Ministry for obtaining funding of Rs 188.818 million for 20 new projects under the Public Sector Development Program (PSDP) funding in 2008-09.

It is worth mentioning here that the FBR has utilised a meager amount on reforms under the Tax Administration Reform Project (Tarp) and the reform process might be completed in 2010 instead of December 2009 due to problems in infrastructure development of reformed units and information technology.

Sources told Business Recorder on Thursday that the FBR had approved 45 new projects in the second half of 2007-08 and a priority list was also compiled for these projects. The issue would be taken up with the Planning Commission and the Finance Ministry at the appropriate time to get sufficient funding for new projects out of the available PSDP resources of the Revenue Division in 2008-09.

Accordingly, a proposal for re-appropriation of funds shall be made by the FBR to the Planning Commission and the Finance Division. The FBR is making strenuous efforts to prepare five-year Infrastructure Development Plan and various schemes approved in the Departmental Development Working Party (DDWP).

Sources said the board has given top priority to the establishment of Tax Facilitation Centers (TFCs). It would make arrangements for location of new TFCs. It has been decided that land would be purchased for the TFCs keeping in view a number of stations required.

It shall also be decided whether to reduce the number of new TFCs keeping in view delay in purchasing lands by respective regional tax offices (RTOs) and the corresponding revenue collection at various stations.

It was decided that various issues related to the Capital Development Authority (CDA) like purchase of plot adjacent to Large Taxpayer Unit (LTU) building at Mauve Area Islamabad, allotment of car-parking spaces for RTO/LUT/MCC building at Islamabad, allotment of land at the back of FBR House for emergency exit, and relocation of covered car-parking space allotted to FBR HQ shall be pursued vigorously.

It was decided that the Monitoring Unit of Directorate of Project Monitoring, Implementation and Evaluation (DPMIE) shall visit the ongoing development schemes more frequently by the tax officials in future.

Sources said the release of funds was not allowed by the Finance Division in the fourth quarter of 2007-08 keeping in view the current financial crunch in the country. According to sources, availability of PSDP funds in 2007-08 was increased to Rs 1.006 billion; thereby crossing psychological barrier of Rs 1 billion mark.

The PSDP demand was transferred from the Ministry of Housing and Works to the Revenue Division and as such, the Revenue Division now appears as a separate entity in the Ministry of Finance.

Sources said that a comprehensive Management and Technical Capability was established in FBR HQ. The Project Monitoring and Evaluation Cell (PM&EC) was established to monitor the PSDP projects of FBR. The project section of FBR was reinforced by posting of Secretary (Projects), Second Secretary (Projects Finance) and Drawing/Disbursing Officer. The above sections were amalgamated into Directorate of Project Monitoring, Implementation and Evaluation (DPMIE).

Sources said the software in the name of "Project Monitoring and Evaluation System" (PMES) was obtained from the Planning Commission, which provides web-based provision of physical and financial progress of development schemes.

Other projects during 2007-08 included construction of additional block in FBR HQ was commenced after completing all its requisite formalities; 5.5 kanals of land adjacent to FBR HQ was purchased from the CDA for construction of additional car-parking. The Director Generals of RTOs were allowed to purchase land from private parties after completing the requisite codal formalities.

 

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SBP striving for economic growth: Dr Shamshad​

KARACHI (August 15 2008): The State Bank of Pakistan (SBP), since its inception, has been making relentless efforts with sincerity and honesty for the development of the country's economy. The banking industry has made significant progress in recent years and the State Bank has taken a number of measures ensuring that people at large reap the benefits of economic growth, sustainability of growth momentum and competitive environment.

This was stated by SBP Governor Dr Shamshad Akhtar, while speaking at the flag-hoisting ceremony held at the State Bank of Pakistan, Karachi, on Thursday to mark the 61st Independence Day. She said the Independence Day provides the nation with an opportunity to reiterate our commitment with our homeland. Dr Akhtar said that despite several problems, Pakistan as a country has come a long way since achieving Independence in 1947. She highlighted various unique features and achievements of the country and said: "We all are proud to be Pakistanis."

The SBP governor said being a leader of a national institution, she must admit that still there are several impediments in our way to progress. "Partly, we are also responsible for that as we have not aligned ourselves with the requirements of the 21st century," she added.

"We have yet to achieve self-reliance in all sectors, which is a hallmark of a sovereign and vibrant nation," she emphasised. Paying rich tributes to forefathers of the nation, Dr Akhtar said that this Day reminds us of our elders, who under the dynamic leadership of Quaid-e-Azam Muhammad Ali Jinnah, sacrificed their lives and as a result of their unparalleled efforts, Pakistan was created.

The SBP governor paid glowing tributes to the national heroes and tens of thousands of unsung martyrs, who played a key role in the independence of the country. The ceremony was attended, among others, by SBP Deputy Governors Mansur-ur-Rehman Khan and Yaseen Anwar, senior executives, directors, officers and staff of the Bank besides families of the Bank employees.-PR