Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan not facing balance of payments difficulties: SBP governor ​

Says IFIs to release loans soon​

Friday, March 13, 2009

ISLAMABAD: State Bank of Pakistan Governor Saleem Raza said on Thursday Pakistan was not facing any balance of payments (BoP) difficulties during the current fiscal year as the IMF, World Bank and Asian Development Bank would soon release their loans for the country.

He also said the central bank would review discount rates in the next couple of months as Karachi Interbank Offered Rates (KIBOR) witnessed 3 per cent decline and it was hoped that the interest rates would be reviewed downward if the core inflation decreased. “There is no question of any rescheduling on paying foreign debt and liabilities as the country made payments on maturity of Eurobond well on time,” the SBP governor said while talking to reporters after the day long roundtable conference on Microfinance Intuitions (MFI) arranged by the Planning Commission (PC), here on Thursday.

To a question regarding the foreign currency reserves target for June 30 envisaged by the IMF, he said the country’s foreign currency reserves were $1.5 billion on higher side compared to the envisaged target till March 2009.

“We have almost half a billion dollar less than the envisaged target of foreign currency reserves till June 30,” he added. According to the latest data of the SBP on Thursday, the foreign currency reserves stood at $10.052 billion on March 7.

Without sharing the exact target for June 30, the SBP governor said the foreign currency reserves would be increased to over $10 billion.

Raza said in the same breath that the country would soon receive $840 million in the second tranche from the IMF after its board approval. The other multilateral agencies such as the WB and ADB would also extend their loans soon so there is no financing gap on external front for the ongoing fiscal year.

When he was asked about any possibility for decreasing discount rates by the end of the current month, the SBP governor was non-committal on this issue and he stated that although the inflationary trend witnessed some declining trends in recent months but the CPI-based inflation pushed up because of escalation in prices of food items. The core inflation is not coming down but the SBP will review discount rates in next couple of months, he said.

Referring to KIBOR, he said it witnessed 3 per cent decline and it was hoped that overall interest rates for borrowers would also be reduced. To another query about existing spread between lending and deposits rates, he said the banks used to charge more on those products where there was a risk of default such as credit card and consumer financing.

He also said the banking sector was not facing any liquidity crunch as bad loans of consumer financing as well as the textile sector put some pressures but their overall situation was quite satisfactory.

Regarding the finance ministry’s intervention into the monetary stance and about autonomy of the central bank, the SBP governor said both the finance ministry and the central bank moved hand in hand and the finance ministry could express its viewpoint on monetary stance which could not be termed contrary to the SBP.

 

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July-February oil production, sales show negative growth​

KARACHI (March 13 2009): Both refined oil production and sales showed negative growth of 5 percent and 4 percent respectively in the first eight months of FY09 over the same period last year. The oil production and sales figures announced by Oil Companies Advisory Committee (OCAC) show that during the eight months of FY09.

Oil Marketing Companies (OMCs) sold 11.7 million tons of oil products (excluding non-energy products) - down 4 percent over the same period last year. "The reason for this decline is weak economic growth and persistent liquidity crunch within energy companies due to non-payment of dues by Wapda," Farhan Mahmood, an analyst at JS Global Capital said adding that out of 11.7 million tons, local refineries contributed 5.9 million tons - down 5 percent on year-on-year basis while the deficit was met through imports by OMCs.

Though the decline in local refined oil production has nothing to do with the recent economic meltdown since local refineries meet only 51 percent of domestic oil products demand, it is the liquidity which restricted the production, Farhan added.

As compared to last year, demand for furnace oil (FO) showed a marginal improvement of one percent to 5 million tons during eight months. Out of 5 million tons of FO sales, local refineries produced only 2.0 million tons (production down 8 percent on yearly basis). Thus, lower refinery output led to higher import of FO by OMCs, which stood at 3.0 million tons, up 10 percent on yearly basis.

Lower than anticipated growth in FO sales is due to cash shortage as Wapda owes more than Rs 150 billion to power sector, which restricted FO based electricity generation, thus increasing power shortages in the country. According to latest numbers, 32 percent of the electricity is generated through furnace oil.

PSO is the major oil importer and supplier of furnace oil with 86 percent market share. During eight months, where we saw one percent improvement in FO sales, PSO outperformed the market with 5 percent growth while other OMCs showed volume decline. Since diesel (HSD) is the major fuel being used for transportation (68 percent share as a fuel), slowdown in economic activity has resulted in 8 percent decline in its sales.

Thus, 4.9 million tons of HSD sales were recorded during the 8 months of FY09 out of which 2.2 million tons were produced by local refineries while 2.8 million tons were imported by OMCs. Sales of petrol (MS) stood at 0.94 million tons during 8 months of FY09, down 4 percent on yearly basis. Out of 0.98 million tons, local refineries contributed 0.88 million tons, while small quantity of petrol was imported during this period.

 

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Foreign reserves decrease by $86 million​

KARACHI: The country’s liquid foreign exchange reserves decreased by $86 million during the last week ending on March 7, 2009, reveals State Bank of Pakistan’s statistics on Thursday. The country’s foreign exchange reserves reached $10.052 billion on March 7 as compared with $10.138 billion last week. The reserves held by the central bank witnessed a major decrease of $74 million to reach $6.613 billion as compared to $6.687 billion during last week. Reserves held by banks (other than SBP), similarly, witnessed a decline of $12 million to reach $3.439 billion as against $3.451 billion last week.

 

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Philips to help Pakistan overcome energy crisis​

KARACHI: Philips Pakistan will not promote any lighting products, which do not comply with global sustainability standards and are not energy efficient. Chairman and Chief Executive Officer Philips Pakistan, Asad Jaffer at a briefing on ‘energy efficient lighting’ said Thursday although this involves a huge cost and sacrifice, we have changed our entire business model to pursue this cause and find solutions to salvage Pakistan from the ever-deepening energy crisis. Jaffer said that Philips Pakistan would replace old lighting systems with the latest and more energy efficient solutions under its global campaign to conserve energy.

 

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New big industrial zone to be constructed in Mirpur​

MIRPUR (March 13 2009): Azad Jammu Kashmir government is seriously contemplating to kick off a broad-based phased plan to establish a new mega industrial zone over an area of 26,000 kanals of land in Mirpur in the near future in order to give an impetus to the stagnant process of industrialisation in Azad Jammu Kashmir, official sources said.

The new industrial zone, the sources told APP here on Thursday, is proposed to be established at Moori on Mirpur-Jatlan road for which the required state-owned and private land was being acquired by the government to implement the plan.

The sources continued that the AJK government was giving due attention to promote the business and industrial activities in Azad Jammu Kashmir where a conducive atmosphere was already available. The state government intended to give due facilities to the existing and intending entrepreneurs at par with the neighbouring Punjab and NWFP provinces as well as in other parts of the country to ensure the speedy uplift of the industrial sector in the liberated territory in letter and spirit.

The sources said that the government also intended to give relief to those industrialists who have to face huge overhead freight charges of transportation of the raw material from various parts of Pakistan to their industrial units operating in AJK.

The industrialisation of AJK may prove to be helpful to overcome the unemployment, particularly among the educated youth besides to alleviate poverty in the area. The sources revealed that the government is also seriously contemplating to give 12 to 14 years tax holidays to the new industrial units to be established in Azad Jammu Kashmir. The amendments in existing five-year tax exemption law for the new comers in the AJK Industrial estates is also proposed to be made by the state legislature.

At the same time, the AJK government has taken serious notice of the increased trend of the misuse of existing five-year tax holidays by certain vested interest industrial concerns operating in the Industrial estates in Mirpur and Bhimbher districts in AJK through closing down their industrial units after enjoying the tax holidays for five years on one pretext or the other or through renaming their already-based industrial units with the ulterior motives to enjoy the tax holidays for another five-year period through using the same machinery and the same premises for their productions.

 

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2 private power projects to produce 420MW
By: Khalid Aziz | Published: March 14, 2009


ISLAMABAD - Two more private power projects have obtained financial closure for establishment of 420 megawatts electric power stations.
The two projects, Hubco-Narowal Power Project and Liberty Power Tech Project have achieved financial closure for 220 and 200 megawatts electric power stations and have gone into construction phase, announced Fayyaz Elahi, MD Private Power and Infrastructure Board (PPIB) during a ceremony here on Friday.

The sponsor of HUBCO-Narowal project, located at Narowal, is the Hub Power Company Limited, while the lenders of project include Habib Bank Limited (HBL), National Bank Limited (NBP), Allied Bank Limited (ABL) and Bank Al-Falah.

The sponsors of Liberty Power Tech Project, located near Faisalabad, are Liberty Mills Limited and Mukaty Family, while lenders of project are Allied Bank Limited (ABL), Habib Bank Limited (HBL), National Bank Limited (NBP), Faysal Bank Limited (FBL), Meezan Bank Ltd and Bank Al-Falah Ltd, etc.
The estimated investment in HUBCO-Narowal project is approximately US$ 274 million while in Liberty Power Tech Project it is US$ 240 million, expected to be commissioned by March 2010 and December 2010, respectively.

With these two projects having started construction, a total of twelve (12) new IPPs are now under construction through government’s power policy and will add a capacity of 2,539 megawatts by end of 2010, Elahi said. This is a major success in attracting private investment to eliminate the present load-shedding as per government commitment to the nation, he added. He said the projects would also increase investors’ confidence in the country’s power sector.


2 private power projects to produce 420MW | Pakistan | News | Newspaper | Daily | English | Online

 

[Neo]

IMF may approve second $840m tranche by month-end ​

Saturday, March 14, 2009

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) is all set to approve the second tranche of $840 million for Pakistan under the Standby Arrangement (SBA) programme in its meeting to be held on March 30, it has been learnt.

“Tentative date for the executive board meeting is March 30 in which Pakistan’s second tranche will be tabled for approval under the SBA programme of $7.6 billion,” an official source confirmed while talking to The News here on Friday.

The government’s economic managers have started lobbying members of the IMF executive board for approval of the second tranche of $840 million as well as obtaining their support for additional funding of $4.5 billion.

Adviser to the PM on Finance Shaukat Tarin held a meeting with US Ambassador Anne W Patterson to convince her to achieve the desired results. Current political turmoil being faced by the country in the wake of a sit-in call given by the lawyers could become a potential threat and create hurdles in the way of the economic managers who are wooing major players of the world economy such as the US, the UK, European Union, Saudi Arabia and others. Sources close to the IMF officials based in Islamabad also reconfirmed that the tentative date for the board meeting was March 30 but it had not yet been formally announced by the IMF on its website. “The IMF will disburse $840 million within 72 hours after the board’s approval,” said an official source and added that it would help the country further strengthen its foreign currency reserves.

According to the latest data of the State Bank of Pakistan (SBP), foreign currency reserves stood at $10.052 billion on March 7 and the central bank aims to increase the reserves up to $10.5 billion by the end of June in accordance with the agreed target outlined by the IMF.

Pakistan and the IMF had recently agreed to revise downward all macroeconomic targets including GDP to 2.5 per cent from earlier target of 3.4 per cent for the current fiscal year. Inflation will be brought down to 20 per cent and revenue target of the FBR was slashed to Rs1,300 billion for 2008-09.

Pakistan had received $3.1 billion as upfront loaded first tranche soon after the IMF’s approval of $7.6 billion for ailing economy of the country on November 24, 2008 in order to avoid risk of default by improving foreign currency reserves under 23 month SBA programme.

For the second tranche of $840 million, Pakistan and the IMF delegation held talks in Dubai from Feb 14 to Feb 26, 2009 and the fund’s review mission would submit its findings before the board for considering the approval of the amount. According to the official sources, the IMF tranche worth $840 million under the SBA programme will be disbursed within two to three days of the board’s approval and it will help the country to improve its foreign currency reserves.

The programme funding from the World Bank, the sources said, would be resumed very soon and Pakistan would receive $500 million under the Poverty Reduction and Economic Stabilization Operation (PRESO) in order to improve budgetary situation. The availability of precious foreign inflows from the IMF and ADB was not facing any problem but the programme loan from the WB faced certain bottlenecks in the past and it was success of the economic managers to convince them for extending programme loans for Islamabad.

The WB and ADB high-ups participated in recently concluded talks at Dubai between Pakistan and the IMF as observer and both the IFIs were completely on the board with regard to the envisaged targets of the national economy. The sources in the ADB are saying that the country will receive second tranche worth $500 million under Accelerating Economic Transformation Programme (AETP) before June 2009 and it will be processed for the board’s approval by May 2009.

 

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US investors to take part in privatisation ​

Saturday, March 14, 2009

ISLAMABAD: The US investors will take part in the privatisation programme of Pakistan under new privatisation policy of Public Private Partnership (PPP).

US envoy to Pakistan, Anne Paterson expressed these views during a meeting with Privatisation Federal Minister Syed Naveed Qamar on Friday.

Qamar said that government was committed to the privatisation of public sector entities through a competitive and transparent process to improve efficiency, production, latest technology and fresh investments in larger interest of the nation. The new devised policy will be focused to bring in efficiency and improvement in the public sector entities to increase the value of national assets and not to go for out right sale. In this regard the minister discussed the possibility of involvement of USAID in the privatisation process. Qamar welcomed US investor’s indication to participate in Pakistan’s privatisation programme.

 

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Potential high for m-commerce in Pakistan ​

Saturday, March 14, 2009

KARACHI: Mobilink Head of M-Commerce, Aniqa Afzal Sandhu has said Pakistan is ready for m-commerce (mobile commerce) with 50 per cent cellular penetration and only 11 per cent banking penetration.

“Due to low spread of banking infrastructure there is a huge untapped market. Currently Rs0.9 trillion are outside the banking industry and are transacted through informal channels. However, the relatively high penetration rate of cellular services offers a lucrative opportunity for all stakeholders to benefit from the services offered through mobile commerce,” she said.

Having pioneered m-commerce in Pakistan, Mobilink shared its learning at the 2nd International Conference on Mobile Banking to encourage other players in banking and telecom sectors to follow its lead.

In developing countries, the practice has largely been operator-centric because there is a gap between bank/financial service infrastructure and cellular service availability/penetration, with cellular footprint surpassing banks significantly, she stated.

Though the cellular and banking customers are the natural target segment of such revolutionary services, the greater beneficiaries would be the untapped segment that neither has a cell phone nor a bank account. This segment will be a major driver for adoption of wireless technologies and services, she added.

 

[Neo]

Wireless telephone users’ growth up 0.7% in Jan 09​

KARACHI: The packages of cut in calling rates and free minutes have continued the connections’ growth of Wireless Local Loops (WLL) or wireless telephones in the country, posting a modest 0.7 percent increase in January as compared with the previous month of December 2008, Pakistan Telecommunication Authority (PTA) figures revealed on Friday.

The WLL subscribers’ base has widened to 2.36 million with the increase of 16,179 connections by the end of January 2009. The WLL tele-density maintained at 1.5 in the population of 160 million, PTA’s data showed.

Telecommunication analysts said various companies of wireless telephone sets have come up with free minutes and lowest call rate packages in January as a result of growing competition among the operators. They have increased a quite good number of subscribers’ in the overall base despite the economic slowdown prevailing in the country, they added.

As far as companies’ revenues are concerned, analysts told that the short-term balance validity on the daily deduction of line-rent retained good returns to the operators despite the sliding of calling rates.

The firms of wireless telephone sets basically focus their business targets’ in the suburban and rural cities of the country where it is used for commercial purposes at Public Call Offices. The six active WLL operators have maintained their users’ growth in January after a fractional fall in its previous months subscribers’ numbers.

Pakistan Telecommunication Company Limited (PTCL) has held its larger share with 1.135 million customers in the country, followed by TeleCard, which shared 582,759 subscribers in tele-service market. Similarly, WorldCall subscribers reached 546,682.

The WLL have also indulged in the run of introducing value-added service (VAS) to their customers particularly the internet, SMS and call transfer and phonebook facility have increased the usage of wireless phone sets, it was learnt.

A PTA official told that WLL sectors have been improved with the investment in its infrastructure that not only improved their voice services but also increased customers’ facilitation through VAS.

The WLL operators will also offer more VAS on the lowest rates in order to grow the number of customers’ in urban areas as well, he added on the condition of anonymity. The authority is also facilitating this sector to improve their services like the cellular phone companies have, he further said.

 

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WB board to consider $500m poverty reduction programme​

ISLAMABAD: Executive Board of the World Bank (WB) would consider much awaited $500 million poverty reduction and economic support operation programme for Pakistan in its meeting scheduled on March 26, 2009.

According to the Monthly Operational summary for the month of March World Bank would hold consultation in first phase on the proposed programmes and projects and their approval is subject to the clearance by World Bank Pakistan office and Executive Board at final stage.

Economic Management: Poverty reduction and economic support operation worth $500 million is to help Pakistan regain and maintain macroeconomic stability, enhancing competitiveness, and protection for the poor and vulnerable.

Energy and Mining: Thar Coal and Power Technical Assistance worth $26 million is targeted to: help the Governments of Sindh and Pakistan strengthen the enabling policy, legal, and regulatory frameworks conducive to new investments in the coal-to-energy sector; and assist the Governments of Sindh and Pakistan to attract qualified private investors to develop Thar coal deposits and build new capacity for coal thermal power generation, guided by high standards of environmental and social sustainability.

Mineral Sector Technical Assistance worth $50 million is for implementing a strategy to accelerate sustainable mineral sector development by strengthening governance, transparency, and capacity in the management of mineral resources.

Information and Commun-ication: Rural Telecommunications and e-Service project worth $124 million IBRD would accelerate access to communications in un-served and underserved areas by using targeted subsidies for rural expansion, strengthen legal policy, regulatory and spectrum management.

Law and Justice: Second Sindh Structural Adjustment project worth $100 million aims at implementing reforms to improve fiscal and financial management, governance, public service delivery, and the state’s regulatory framework.

Social Protection: Support to Safety Nets project worth $50 million is to support the effective strengthening of implementation and monitoring mechanisms for delivery of cash transfer programs. Project preparation is underway.

Transportation: National expressways project worth $634.5 million IBRD is for the sustainable delivery of an efficient, high speed and safe access-controlled expressway system contributing to lower transit costs and time along the programme corridor.

Trade and Transport Facilitation-II project with $25 million is to improve performance of trade and transport logistics by facilitating the implementation of the National Trade Corridor Improvement Programme and the simplification and modernisation of Pakistan’s international trade procedures and practices.

Education: $100 million (IBRD) worth Higher Education Support Programme is in pipeline to support the Government of Pakistan’s higher education medium term development framework to foster public private partnership in the delivery of higher education and to provide substantial technical support to the client in developing a reasonable financing plan consistent with the macro-framework of the country.

Urban Development: Punjab Large Cities Development Policy project worth $100 million (IBRD) is also in pipeline. The objective is to promote economic growth in the major cities through strategic planning, integrated infrastructure investments, and efficient urban service delivery.

Second Punjab Barrages Rehabilitation and Modernisation worth $120 million (IBRD) is under consideration. The objective is to prevent the occurrence of disastrous barrages failure and ensure their sustainable use, providing improved and reliable irrigation and drinking water supplies. Decision meeting scheduled for 1 June 2009.

 

[Neo]

Obama Afghan plan focuses on Pakistan aid ​

NEW YORK (March 14 2009): President Barack Obamas plan for Afghanistan includes proposals to shift more American efforts toward problems in neighbouring Pakistan and to seek some kind of political reconciliation with the vast majority of insurgents in the region, according to The New York Times on Friday.

Citing administration officials, the newspaper said the plan reflects in part a conclusion within the administration that most of the insurgent foot soldiers in Afghanistan and Pakistan are "reconcilable" and can be pried away from the hard-core organisations of the Taliban and al Qaeda.

At least 70 per cent of the insurgents, and possibly more, can be encouraged to lay down their arms with the proper incentives, they said. A strategic review nearing completion is being carried out by a team of high-ranking administration officials whose recommendations will be subject to Obamas approval. After seven years of a United States-led war effort in Afghanistan, officials involved in the review claim that the military to date has succeeded primarily in driving the most hard-core Taliban and other extremist militants out of Afghanistan and into western Pakistan.

To put more pressure on those Pakistani sanctuaries, the dispatch cited United States and Pakistani officials as saying they expected the plan to recommend at least a continuation of what amounts to a covert war carried out by the Central Intelligence Agency inside Pakistan, using drone aircraft for missile strikes on insurgent hide-outs. The plan will also call for an increase in military and financial aid to Pakistan, though there was still a debate on just how much additional aid should be provided, the dispatch said. One senior Obama official was cited as saying the military aid to Pakistan would be aimed at trying to get its army to focus more on counterinsurgency and less on its long-running feud with India.

 

[Neo]

National Assembly body approves revised budget for 2008-09 ​

ISLAMABAD (March 14 2009): The Finance Committee of the National Assembly approved the revised budget for 2008-2009 and budget estimate for 2009-2010. The meeting of the Finance Committee of the National Assembly was held under the chairpersonship of Speaker Dr Fehmida Mirza, in the Parliament House, on Friday. The Committee approved minutes of the previous meeting of the finance committee.

The committee also approved the figures of the revised budget of the National Assembly for the year 2008-09 and budget estimate for 2009-10. The committee was of the view that the country was facing difficult economic challenges, which can only be met when all organs of the state and sections of the society make sacrifices through economy and frugality in the expenditure.

The Speaker in her brief said that NA Secretariat through austerity measures saved Rs 38 crore during the years 2008-09. She said that the current budget was freezed at level of previous years budget and the NA expenditure has remained strictly within that limits. She said keeping in view the economic hardships in the country.

It was necessary to keep the expenditures within limits. She said that working at the secretariat and services to the parliamentarian are being improved through merit based recruitment and promotion and better training and capacity building of the secretariat staff. The Committee appreciated practising of the austerity measures and recommended to continue the same in future too.

The meeting was attended by Faisal Karim Kundi, Deputy Speaker National Assembly, MNAs, Fouzia Wahab, Azeem Daultana, Asma Arbab Alamgir, Nafisa Shah, Chaudhry Saud Majeed, Sardar Shahjehan Yousaf, Farkhanda Amjad, Bushra Rehman, Secretary Ministry of Finance and Secretary and Additional Secretary of the NA.-PR

 

[Neo]

NWFP launches Rs three billion mega carbon sequestration project ​

PESHAWAR (March 14 2009): NWFP government with the financial assistance of federal government had launched a six-year Rs 3.03 billion mega carbon sequestration project in the province. For the current financial year, it had sanctioned an amount of Rs 191.00 million for the project.

This was stated by NWFP Minister for Forests and Environment, Wajid Ali Khan while planting a tree in connection with the Spring Plantation campaign here at Peshawar Press Club on Friday. Beside, the carbon sequestration project, an amount of Rs 113.209 million had been sanctioned for another federal government assisted project of WaterShed Management Project for the current year.

Under the project, he said the provincial government would carry plantation on a huge area of 5500 acres. He disclosed that under the project 7.750 million plants would be planted in the spring plantation campaign in the province. In the forest sector, the provincial government had included 42 projects for the preservation and development of the forests in its annual development programme.

The projects were included 22 ongoing and 20 new. The government, he said had sanctioned Rs 194.293 million for the completion of the 42 projects. The forests sector projects for the current year included growing of nurseries on an area of 150 acres, plantation on 35000 acres land and sowing of seeds on 5000 acres land.

The department will also plant trees on the sides of 1500 kilometres of roads and canals. The department will also distribute 10 million plants in the province. During the year, the government had also planned to achieve the targets of the delimitation of the forests on 0.1 million acres and 500,000 squares feet soil protection.

NWFP is head in forest-covered areas in Pakistan than other three provinces. Trees and forests, he said is national treasure playing important role in the strengthening of the national economy even in the present modern era and maintaining better environment.

During the monsoon tree plantation campaign of the current financial year a total of 9.154 million plants have already been planted in the province with the cooperation of different public and private sectors institute and general public. The government for the current year had planned plantation of 25 million plants through forests and other departments. The plants would be supplied on cheap prices to the people at all levels in the province.

Through rural development committees, the department will plant 0.277 million trees, 0.770 million with the cooperation of armed forces of Pakistan, 0.502 million through educational institutions and 2.090 million through farmers and general public. The non-governmental organisations and others will plant 1.289 trees and 20.822 million plants through the employees of the department of forests in the province.

The spring plantation campaign for the current financial year had been started in February, which urging us for the fulfilling this national and religious responsibilities. He urged on the people in general and farmers, governmental and semi-governmental institutions and education institutions for playing important role in bringing green revolution in the country.

"The objective will not be achieved through mere plantations, but their proper look after and protection are also included in our responsibilities for converting the provincial into a paradise," concluded Khan. Later, the provincial Minister for Forests, Wajid Ali Khan plants a tree in the lawn of the press club in the connection with plantation campaign.

 

[Neo]

Need stressed for greater attention on scientific research ​

ISLAMABAD (March 13 2009): Pakistani industry will have to give proper attention to modern and scientific research for making its products compatibles in the international market and earn wider market space round the globe, said Syed Asad Haider Mashhadi, President Rawalpindi Chamber of Commerce and Industry (RCCI) here on Thursday.

Co-ordination between industrial sector and research institutions is imperative to go through to the latest research and adopt the modern methods of production and quality management, Mashhadi said while addressing a seminar at RCCI on the topic of "Value Addition in Industrial Activity through Scientific and Technological Information".

The seminar was jointly organised by RCCI and Pakistan Scientific and Technological Information Center (PASTIC), a subsidiary department of Pakistan Science Foundation. Vice President of the Chamber Imtiaz Chaudhary, former President, S. M. Azim, Director PASTIC Mrs Nageen Ain-ud-Din and Chief Scientific Officer of Pakistan Science Foundation Dr Manzoor Hussain Soomro along with a large number of business community was also present on the occasion.

President RCCI said that the quality of the product has become an important factor of marketing that without it no one even might think to market his product and for acquiring international standard, continuous scientific research is extremely imperative.

"We can grow every kind of fruit and crop by virtue of best climatic conditions in the world. Moreover we have lot of potential in natural as well as human resources but despite these facts Pakistan has been facing the problems of unemployment, poverty and illiteracy. Only due to lack of scientific research, we could get benefit from our capabilities in befitting manner", he added.

He said that scientific research on modern lines should be adopted not only for the development of industry but also betterment of common man. It is the duty of industry to support research institutions as it is the only way to develop a strong base for industry in the country on permanent basis.

Mashhadi was of the view that although whole world is passing through a recession now days but this temporary slump period would be over and soon the business would be boom once again but co-operation of research groups and industry should never be stopped at any stage.

Director Pakistan Scientific and Technological Information Center (PASTIC), Nageen Ain-ud-Din briefed thoroughly about the history and performance of the organisation. She told the audience that on one hand PASTIC is providing technical support to the researchers and students in different fields to carry out their research work and on other many important strategic and defence departments as well as private sector is taking full advantage from the expertise of the centre.

She suggested that industrialists should take initiative to start project relating to research and development in their industry and Pakistan Scientific and Technological Information Center would extend maximum support for improving quality of their product. On the occasion Chief Scientific Officer of Pakistan Science Foundation Dr Manzoor Hussain Soomro said that PSF is working on indigenous technology and it can help the industry to make Pakistan self reliant.