Pakistan Economy - News & Updates - Archive

[Neo]

Pakistan’s GDP growth seen contracting​

ISLAMABAD, Oct 30: Pakistan is unlikely to achieve the 5.5 per cent economic growth target for this fiscal year as it prepares for an IMF stabilisation package and manufacturing and services will be constrained, states a Citigroup market analysis report.

“We project 3.7 per cent growth in gross domestic product of the country,” states the report available with Dawn.

It analyses the currencies, stocks, sovereign debt, local rates records and other economic indicators as on October 27, 2008 of 43 emerging economies from Asia, Latin America, Europe, Africa, Middle East and Euroasia. The report also forecast various economic indicators of these countries for the next two years (2009 and 2010).

In Pakistan, it says food inflation has eased from its 34 per cent year-on-year (YoY) peak in August this year, with headline Consumer Price Index (CPI) at 23.9 per cent in September.

It expects average inflation to peak in March 2009 and average the year at 21.2 per cent. Non-food inflation will continue to rise until early 2009 as subsidies on fuel and power have been eliminated by the government.

“The economic problems facing the country have overshadowed the politics,” it states, adding that Pakistan was unable to secure external assistance from donor countries, but this had more to do with the lack of an underlying stabilisation programme, than political differences between Pakistan and its allies.

“We do not expect much political activity till the outcome of the US presidential elections,” the report states.

Fiscal pressures, the report states, remain the biggest policy challenge facing the country. The fiscal gap in year 2008 was 7.4 per cent of GDP against a target of 4 per cent. The government has projected a sharp reduction in the gap to 4.7 per cent in 2009.

“But, we think this is too ambitious – the IMF is aiming for about 4.3 per cent [fiscal gap],” the report states.

With an IMF Standby Arrangements (SBA) - that is non-concessional loan - likely before this year’s end, there will be lots of pressure to ease spending. Although the IMF should seek another round of monetary tightening, this may not be forthcoming as Pakistan’s banking sector could experience a fresh wave of non-performing loans (NPLs).

The report expects that a slowdown in consumer demand should help ease payment pressure, but the sharp fall in the price of oil will make the real difference. The impact has yet to be felt as the first quarter of the current financial year, which saw the current account deficit almost touched $4 billion against $2.3 billion in the corresponding period last year.

However, with demand management likely to be imposed, the current account gap should fall from $14 billion in 2008 to a more manageable $8-9 billion in 2009.

“We think the IMF will endorse the government’s stabilisation programme,” the report states. But, adds that inflation will continue rising due to fiscal pressures and cut in subsidies.

The report says that risks to Pakistan’s economy are closely related to a number of developments which are in the making including the quantum of the IMF package, and how much of this is front-loaded; commitments from the other international financial institutions (IFIs); hard numbers for the balance of payments and fiscal account for the next two years; bilateral assistance crowded in by the IMF programme; and whether the US steps up its activities in the tribal regions, and how the government and the Pakistan Army responds.

 

[dr.umer]

Saudi Arabia agrees to supply oil on credit to Pakistan​

ISLAMABAD: Saudi Arabia has agreed to supply oil on credit to Pakistan.

The acknowledgement follows the acceptance of special request by Pakistan and keeping in view the forthcoming visit of President Asif Ali Zardari to Saudi Arabia.

Reliable sources have informed that President Asif Ali Zardari is due to visit the Saudi Kingdom on 04th Nov, where besides meeting with top leadership, he would also request supply for oil on credit.

Sources have also informed that special advisor to PM on Finance, Shaukat Tareen would also visit Saudi Arabia in this connection, while the Saudi officials are also expected to make a formal official announcement in this regard soon.

Saudi Arabia has agreed to supply 1,10,000 barrels of oil daily , according to which Pakistan would be facilitated to pay U$. 65 per barrel, summing upto U$. 2 billion per year.

This facility would lessen Pakistan’s reliance on unreliable aid of Global Financial Funds.

 

[sunny_aus]

WSJ slams IMF's prescriptions​

NEW YORK (October 30 2008): An influential US newspaper has criticised the prescriptions of the International Monetary Fund (IMF)--cuts in government expenditures, devaluation, and tax increases--for bailing Pakistan out of the financial crisis, saying that the measures would have opposite effect.

"Pakistan needs market-oriented reform along the Chilean and Irish models, not the IMF's austerity prescriptions," The Wall Street Journal said in an editorial, titled 'Does the IMF have no fresh ideas?' "Pakistan's economic wellbeing matters not only for its 165 million citizens but also because it's a key country in the world-wide war on terror," the editorial said.

The Journal said the IMF declined comment on a Pakistan Finance Ministry spokesman's statement last week that the Fund "wants Pakistan to reduce its government expenditures, maintain a 'flexible' exchange rate and 'increase' its tax-to-GDP ratio".

"These are exactly the 'beggar-thy-neighbour' policies that sent Thailand, South Korea and Indonesia reeling in 1997-98," the editorial said. "Cutting subsidies is necessary, but politically impossible right now, with inflation running at 25 percent and daily power cuts. Depreciating the rupee vis-a-vis the dollar might benefit the country's crony capitalists who make money by selling cheap exports, but it would hurt the vast middle class, raising taxes in the middle of the financial crisis--no one is talking about cutting them--would drive away foreign investment."

it’ not even in the interest of IMF to let the Pakistani economy collapsed because of any default. they just want to make sure that the money they are going to lent pakistan will have a suitable “return path” with at least a “not bad” interest rate.

I think, Pakistani government would in fact thank IMF for their any type of advice for economic reforms like withdrawn of few unnecessary subsidies. its in fact good that someone want to advise you for anything which may result in a better future of economy and at the same time they will also get a confidence that Pakistan will be able to pay back the loan also.

there is a need to utilize this expected $10-12bn loan for making better infrastructure. it won’t be like Pakistan just covered the trade deficit for next 5-6 months by using $5-6bn and paying back the immediate debt obligations and then again you need money to pay for the next deficits and debts.

Global economic slowdown has reduced value of key resources like oil, gas, steel, coal etc. pakistan has a pretty good chance to reduce it’s trade deficit to a comfortable level within next 5-6 months, and at the same time, building a $10-12bn world class infrastructure by using this loan.
in fact, this much investment may cause a type of revolution in a comparatively small economy of Pakistan.

And for this to happen, there will be a need of a type of war to protect this much money from corruption. any type of procedure to have a watch on the invested money, how it is spent and where it goes, may be a solution, I think.

 

[Neo]

President, PM agree not seeking loan on IMF tough terms ​

ISLAMABAD (updated on: November 01, 2008): President Asif Zardari and Prime Minister Yousuf Raza Gilani have agreed for not taking loan on tough IMF conditions.

According to Aaj TV sources, Prime Minister Yousuf Raza Gilani met with President Asif Zardari in Presidency and briefed him on Turkey's visit.

Both leaders have agreed that final decision about taking loan from IMF would be taken after President Zaradari's visit of Saudi Arabia and meeting of friends of Pakistan which would be held in Abu Dhabi.

 

[Neo]

Rs 20 billion capital market fund in few days: Tarin​

KARACHI (November 01 2008): The Advisor to Prime Minister on Finance, Shaukat Tarin, has said that the proposed Rs 20 billion market support fund will be made available within the next few days. Speaking at a meeting with members of Karachi Stock Exchange (KSE) during his visit here on Friday, he said that the KSE board would decide the issue of 'floor' removal, and government would not interfere in this matter.

He said that four institutions--National Investment Trust (NIT), Employees Old-age Benefit Institutions (EOBI), State Life Insurance Corporation of Pakistan (SLIC), and National Bank of Pakistan--would contribute Rs 5 billion each in the market support fund. "All these institutions are ready to arrange the fund, which will be available much before removal of floor," he added.

He said that the government had already proposed to the public sector companies to buy back their shares to support the market. The government wants to revive the investors confidence, he added. The Advisor said that world economies have suffered due to international economic crisis, and Pakistan's economy was also affected negatively.

He said that energy and food crisis, worsening law and order situation, decline in exports and slow manufacturing led to pressure on stock exchanges. He said that Pakistan "has great potential" to come out of the prevailing situation to stabilise the economy.

He said that agriculture and manufacturing sectors needed more attention to enhance exports and to create more job opportunities in the country. "We should use our natural resources, like mining, especially coal, to generate more electricity to cater for domestic needs", he added.

"We have our own economic growth plan to bring down inflation, lowering the fiscal deficit and to generate more revenue", he said, and added that discussions were underway with IMF and 'Friends of Pakistan'. Regarding law and order situation, the advisor said that the government was taking various measures to improve the situation, mainly in the northern parts of the country, and formation of jirgas was part of this policy. The government has also planned to start economic activities in those areas to control extremism, he said.

He said that the government wants to create investment-friendly environment in the country so that foreign investors could come here with confidence. The expectation of good returns and confidence would bring investment in the country and inflow of foreign funds will stabilise the economic situation in the country.

He said that the government wants to increase tax net. However, the government does not want to harass the people. "We have to change the FBR culture and its mindset so that the people will be ready to pay taxes without any harassment", he added. Earlier, the Advisor also held a meeting with KSE board of directors and discussed various issues regarding the prevailing situation in the stock market.

 

[Neo]

Government borrowings from SBP reach Rs 266 billion​

KARACHI (November 01 2008): The borrowing by the government for budgetary support from State Bank has reached Rs 226 billion mark, an upsurge of about 2000 percent, during the current fiscal year due to slow foreign inflows, besides rising expenses. The State Bank of Pakistan (SBP) Governor, Dr Shamshad Akhtar, on Friday announced that that government was committed to zero borrowing from November 1, but the borrowing has already gone up.

Banking sources said that the 2000 percent increase in government borrowing reflected that the government was relying on SBP for budgetary support, despite the central bank's request for reduction, and retirement of the loan.

SBP said that government from it had gone up by 2334 percent--Rs 266.633 billion--from July 1 to October 18 (approximately 16 weeks) as compared to Rs 10.951 billion from July 1 to October 20 of last fiscal year. This depicts an increase of Rs 255.682 billion.

However, government borrowing from other banks showed sharp decline to Rs 137.903 million during the period under review as compared to Rs 80.137 billion during the same period of last fiscal year.

Analysts said that government's commitment to not borrow from central bank is a good decision, which would help the central bank to reconsider its monetary policy. It may be mentioned here that government borrowing for budgetary support from banking sector has gone up by 352 percent to Rs 461.280 billion during the last fiscal year 2008.

 

[Neo]

Saudi Arabia commits $100 million for quake victims​

ISLAMABAD (November 01 2008): Saudi Finance Minister Dr Ibrahim Al-Assaf on Friday committed immediate transfer of $100 million relief and rehabilitation support for earthquake victims of Balochistan. Dr Ibrahim further said that Saudi government would be providing a package of health and relief support along with the financial assistance already committed.

During a meeting with advisor to the prime minister on finance and economic affairs, Shaukat Tarin, Al-Assaf expressed sympathy over the loss of precious lives and property during the earthquake, which devastated many areas of Balochistan.

The Saudi Finance Minister on behalf of Saudi Kingdom commiserated with bereaved families and conveyed the resolve of his government for all-out support to the victims. Tarin thanked his Saudi counterpart on the concern shown by the Kingdom of Saudi Arabia with whom the people and government of Pakistan share deep-rooted historical ties.

 

[Neo]

Belgium swaps euro 30 million assistance​

ISTANBUL (November 01 2008): Prime Minister Syed Yousuf Raza Gilani on Friday expressed gratitude to Belgium for swapping its debt of Euro 30 million as assistance for reconstruction of 2005 earthquake hit areas. In his meeting with the Belgian Foreign Minister, the Prime Minister underscored the importance that Pakistan attached to its relations with Belgium.

The Belgian Foreign Minister condoled the loss of lives and property in Balochistan earthquake. He informed the Prime Minister that Belgium was planning to send the relief assistance for earthquake victims. Both the leaders agreed to convene the meeting of Pak-Belgium Joint Commission in the coming months to reinvigorate their co-operation in the area of trade, investment, education, IT and scientific fields.

On the request of the Prime Minister for Belgium support to Pakistan's case for inclusion in the GSP plus scheme and initiation of FTA talks with the EU, the Belgian Foreign Minister stated that his government would give these matters sympathetic consideration.

The Belgian Foreign Minister requested briefing from the Prime Minister on Pakistan's counterterrorism campaign, on chances of success of US and Nato military campaign to root out extremists from Afghanistan and Pakistan's assessment of the overall situation in the region.

The Prime Minister highlighted the fact that all the allied forces must strive to win hearts and minds of the people rather than relying exclusively on the military means to win against extremists and militants in Afghanistan. He said that his government was following that policy so that people of Pakistan should own its campaign against terrorism.

Noting that Belgium is an important member of Nato which had its troops in Afghanistan, the Prime Minister asked for Belgian support and intercession to stop US and Nato incursions into Pakistani territory.

The Belgian Foreign Minister fully agreed with the Prime Minister that incidents involving heavy collateral damage were only fuelling the anti-West sentiments. This, he added, was detriment to the common cause of Pakistan and the allied forces.

He said his country was against such violations and would not support it. The President of Latvia in his meeting with the Prime Minister also condoled the loss of precious lives in Balochistan earthquake. He also sought the assessment of the Prime Minister on the ongoing US/Nato war against extremism and terrorism.

He said that Latvia, a member of Nato, had its troops stationed in northern Afghanistan and like most other such countries wanted to have a close co-ordination with Afghanistan's most important neighbour in this campaign. Prime Minister briefed him on steps Pakistan was taking to counter terrorism and extremism in the country. The two leaders also agreed to upgrade the current status of Pakistan-Latvia relations through enhanced exchanges and interaction.

 

[Neo]

How about a Plan 'D'​

ARTICLE (November 01 2008): In wake of financial crisis all over the globe Governments, Central Banks, Financial experts, Economist, Planners, Think tanks and Strategist are busy and struggling to find out ways on how to overcome the debacle, but we have more gloomier faces than ever. To offset the impact of global slowdown, the authorities around the world are taking drastic measures to boost domestic growth, avoid inflation, strengthen the equity market and avoid sharp fall of currency.

The issues are numerous. After sub-prime, banks bail out is a big headache. Despite aggressive global rate cut and liquidity injection, quality lending is the only consideration, as confidence crisis prevails and therefore, even good names are unable to get credit.

Foreclosures and delinquencies are a pain in the neck and extra funding will be required for another bailout package. Drastic measures have been taken by Fed and European Central Bank to halt emerging market crisis by providing USD 5 billion to 30 billion swap facilities. Next problematic issue that is queuing up is the consumer business ie, credit cards and auto loans.

Pakistan is luckily miles away from all such jumbled up issues. But we certainly have our own home-grown problem, which needs to be cleared up. Earlier, we missed out the opportunity badly, as after nine-eleven, we were blessed with overseas remittance, which poured through official channel, as overseas Pakistani started sending more money through banks instead of sending money through unofficial channel. Prior to nine-eleven official remittance would hover around USD 1.2 billion? It was only once during General Zia era that our workers' remittances surpassed USD 2 billion mark.

Today, despite a record USD 7 billion remittances number, we are, financially a most disorganised lot. We wasted our money in cultivating a consumer culture. We managed to survive on asset sales and FDIs, until the oil prices started climbing.

We paid no heed despite our oil bill surpassing our textile exports, and today we are madly knocking at each door in search of donors. So far, no one has shown keenness to listen to our plea, probably because our appeal lacks conviction or we are unable to make an acceptable presentation. It seems IMF is the lone choice that can provide temporary relief, but only with some very bitter pills.

As the saying goes "it is never too late". Why don't we ask Fed, ECB, BOE and Friends to Pakistan to consider our proposal, which offers better return to them? This would be quite a professional approach. And we are not begging either. Why can't we work on plan "d" and insist for this option. It is a much better option and serves our need.

We have to make a strong argument based on recent global developments in which effort was made to rescue the world's emerging markets. Pakistan requires similar consideration. They have to consider our case seriously as we are part of the emerging market. We should also counter their double standard approach when dealing with Pakistan.

Our argument should be based on the recent Fed decision to provide US Dollar swap opportunity against emerging market's domestic currency to rescue their market from collapse. This is swapping of US dollars for the domestic currency of each country, which was important because many them were short of US dollars, causing their local currency to weaken, which was also causing inflation. The Dollar liquidity shortage could have stifled international trade as a high percentage of international trade contracts are denominated in US dollars.

Pakistan is currently facing an identical problem and our foreign exchange reserves are depleting so sharply that we cannot to survive after next 30 days. Hence, we should either be provided with a similar dollar swap facility against Pakistani rupee, or provided help under plan "d". Why not invest in our 3 years, 5 years and 10 years Pakistan Investment Bonds (PIBs)? All they have to do is purchase rupee against foreign currency and they get lucrative return.

The question arises as to who bears the exchange risk? This would be a direct GOP deal and therefore, exchange rate risk and PIB Yield can be worked out between two Central Banks. Borrowing loan either from IMF or Friend of Pakistan would ultimately inflate our external borrowing head, which will certainly impact exchange rate at the time of maturity. So, from Pakistan's point of view, both the deals have same impact. But, plan "d" perfectly suits our requirement.

Imagine, our government borrowing issue will be settled. Inflation caused thorough government will be zero. Exchange rate will become stable. Foreign Exchange Reserves would get the boost. Fiscal deficit target of 4 pct will be easy to attain. The economy will get the much-required breathing space. Revenue could also get the required kick off. No big slash would be required on government spending. Meanwhile, the country will have enough time to plan its next strategy until the deal matures. The only things we need to do are make a serious effort, make strong argument and present our case with firm determination.

 

[Neo]

Zardari leaves for Saudi Arabia on November 4​

ISLAMABAD (November 01 2008): President Asif Ali Zardari will seek Saudi support for Friends of Democratic Pakistan initiative and the oil facility requested by Pakistan, said Foreign Office spokesman Mohammad Sadiq during a weekly media briefing here on Friday. "President Zardari is visiting Saudi Arabia on November 4-5, to seek economic assistance to overcome balance of payment and financial deficit problems" he informed.

Friends of Pakistan (FoP) will meet in Abu Dhabi after November 15, Sadiq said, adding that the countries will be represented at the ministerial level and the framework/modalities of the meeting are being worked-out. Commenting on US drone attacks in the tribal belt he said that people are furious due to frequent missile attacks and Pakistan's peace efforts against terrorism is getting severe blow due to such attacks by US.

"The government of Pakistan has repeatedly expressed its concern over US attacks inside Pak territory as they strengthen the militants instead of helping the war on terror," he maintained. To a question the Spokesman said that Pakistan is seeking help from many countries including US to strengthen its law enforcement agencies against terrorism as it is need of the hour.

Talking about continues violations of Indus Water Treaty (IWT) by India he said that some breakthrough is expected in New Delhi talks within two days. "The IWT be implemented in letter and spirit as use of Chenab water by India is affecting the Pakistan's agriculture sector and damaging its economy badly," he opined. The spokesman ruled out about presence of any Pakistani prisoner at US Bagram airbase, saying that US and Afghan authorities have assured that no Pakistan national is present at the base.

Replying to a question about probe into BB's assassination, he said that United Nations is still working on a commission to investigate the assassination of Benazir Bhutto. Sadiq said that the government has not asked for any support from the international community for quake victims of Balochistan, but the response is overwhelming, which is a welcome gesture.

To a question on the whereabouts of Dr Aafia's children Maryam and Salman, he responded that the government has no authentic information. Commenting on recently held Pak-Afghan Jirgagai, the spokesman said that both Pakistan and Afghanistan are striving for peace in the tribal region for which efforts are being made to hold talks with Taliban and other warring factions.

 

[Neo]

IMF asks Pakistan to make oil payments through market flows​

KARACHI (October 31 2008): The International Monetary Fund estimates that Pakistan's growth will slow down to 3.5-3 percent in the current financial year after Pakistan signs for Stand-By Arrangement (SBA) facility with the Fund. In fact, the Fund is not concerned at the annual GDP growth even if it falls below three percent because the Fund fully appreciates the facts that historically Pakistan has shown that once it is able to achieve macroeconomic stability the growth of above six percent is also achieved for a long period of time.

-- The growth path would be 'U' shaped (low growth) if the country does not increase the policy rate. The Fund, therefore, would like the growth path to be in 'V' shape if Pakistan adheres to its loan conditionalities. If Pakistan does not increase the policy rate by 3.5 percent to 16.5 percent (which is close to a 17 percent rise in CPI), the Fund fears that Pakistan's growth path would be 'U' shaped ie low growth for a longer period.

EXCHANGE RATE: The Fund team, which negotiated with Pakistani authorities in Dubai, for the last seven days, is satisfied with the present exchange rate which is market driven. However, the Fund wants the State Bank of Pakistan to let the market flows meet the oil import payments instead of utilisation of SBP reserves for this purpose.

An L/C opening bank needs to accumulate the dollars from the inflows as it knows when the L/C will be encashed. At present, SBP meets the bank needs as the lumpy payment increases the volatility in exchange rate movement. Pakistan would need to improve its forex reserves by $700 million from the present level of $7 billion at the end of one year of the programme. This estimation is based on the various Sukuk bonds and other payment due by until November 2009.

Pakistan is committed to improve its tax-to-GDP ratio to 15 percent in medium term, however, it would need to improve this ratio by at 0.6 percent to FY09 in case it awaits the Fund seal of approval. Since Pakistan has already met over 80 percent of the Fund's normal conditionalities on its own ie reduction in subsidy on oil and utilities and a market driven exchange rate - there is very little left for further discipline.

The insistence of 3.5 percent in SBP discount rate is the only real pain that the nation would need to undergo. However, the Fund would allow this policy rate to come down once it is clear that the core inflation has reversed.

It takes six to 12 months for monetary tightening measures to work through the system in Pakistan. Helping the Mutual Fund industry is likely to be acceptable to the IMF. But any bail-out or guarantees for the stock market are favoured by the Fund, say informed sources.

 

[Neo]

Agreement reached on $9.6 billion SBA​

ISLAMABAD (October 31 2008): IMF and Pakistan teams in Dubai have informally agreed on a $9.6 billion Stand-By Arrangement for a two-year period, sources said. At the conclusion of over 10-day talks IMF was stressing on more revenue generation and extending tax net, which was one of the last points of the agenda after going through external, manufacturing and services sectors performance.

IMF staff under leadership of Advisor Middle Eastern and Central Asia Division would prepare Article-IV Consultation papers and letter of intent(LOI) for the expected agreement. Pakistan could get $3 billion in first tranche depending upon its need and remaining would depend on quarterly instalments after detailed reviews.

The same had been demanded by World Bank and other donors that under such precarious conditions Pakistan should get regular "medical check up" of economy from IMF. Friends of Pakistan had also asked for IMF broader agreement of Pakistan's stabilisation plan.

IMF has also asked for enhancing discount rate, keeping fiscal deficit at 4.3% of GDP and to reduce borrowing from State Bank to curb inflation. PM Advisor on Finance had said that there was disagreement on issue of discount rate where core inflation is still 17%, which is based on money supply growth. IMF was stressing on enhancing discount rate which also pushes up cost of borrowing of State Bank which in actually turns to be at zero rate of return, when government's interest cost is covered in SBP's profit

 

[Neo]

Inflation swells to 29.79 percent​

ISLAMABAD (November 01 2008): The inflation measured through SPI increased to 29.79 percent on week, ending on October 30 over the same period of last year, said Federal Bureau of Statistics on Friday. The data on SPI released showed that there was an increase in the prices of 14 essential items, including vegetables, pulses, tea and plain bread.

The price of one kilogram tomatoes has increased during the week from Rs 28.12 to Rs 131.80; tea packet of 250 grams from Rs 94 to Rs 100; potatoes per kilogram from Rs 25.70 to Rs 27.06; masoor pulse washed per kilogram from Rs 126.92 to Rs 130.02; eggs per dozen from Rs 61.24 to Rs 62.60; bath soap (Life Buoy) from Rs 21.53 to Rs 22; firewood per 40 kilograms from Rs 256 to Rs 258; and bread plain from Rs 23.62 to Rs 23.68.

With this increase in the prices of essential commodities, the dearness for the low-income group families bracketed in Rs 3,000, was recorded at 231.72 per cent more over the same period of last year, followed by 30.46 per cent for families, falling between Rs 3,001 to Rs 5,000 income group and 31.41 percent for Rs 5,001 to Rs 12, 000.

The dearness for above Rs 12,000 income group was recorded at 29.75 percent during the period under review. The SPI bulletin, based on data of 53 items collected from 17 urban centres showed increase in prices of 14 essential commodities, decline in 19, while the prices of 20 commodities remained stable during the week, but were higher as compared to the last year.

Further analysis of the data showed that prices of 19 commodities, including vegetable ghee, bananas, cooking oil, chicken, onions, vegetable ghee (loose), gram pulse (washed), red chillies, wheat average quality, rice irri, sugar, rice basmati broken, mustard oil, moong pulse (washed), liquefied petroleum gas (LPG), kerosene, gur and garlic have declined during the week. According to the FBS, the prices of 20 essential commodities remained stable during the week. However, a comparison with the same period of last years showed that prices of 42 essential commodities have increased to double digit.

 

[Neo]

Chief engineers directed to accelerate pace of work on uplift schemes​

LAHORE (November 01 2008): Senior Minister, Raja Riaz Ahmad has directed the Chief Engineers of Irrigation & Power department to accelerate the pace of work on developmental schemes and ensure that 50pc of the work be completed by January 15,2009 adding that action would be taken against CEs failing to do so.

He was presiding over a high level departmental meeting of Chief Engineers, Superintending Engineers and other high ranking officials, which was also attended by Secretary Irrigation, Babur Bharwana at Irrigation Committee Room, here on Thursday.

At the outset, the meeting reviewed the annual development plans and observed that pace of work be expedited for their timely completion. A sum of Rs 11300 million was reserved in annual development programme for the execution of development plans. Rs 8290 million are meant for on-going schemes and Rs 3010 million are allocated for new projects in the current fiscal year.

All the CEs must ensure that their projects be completed well in time so that payments could be made before June 30, he told. Meeting also reviewed 19 un-approved schemes one by one. Meeting was further informed that Punjab Information Technology Board (PITB) was developing necessary software for computerised monitoring of canals and water channels in the province and this project is expected to be launched in 2009-10. A sum of Rs 209 million is reserved for this project.

Meeting observed with concern less than 20% budget utilisation on releases in 67 slow moving schemes. Raja Riaz directed to send 3-member Irrigation officials' teams to every district to monitor water availability in channels/canals and distributaries for giving report till November 13.

He also asked that Project Management Information Unit (PMIU) to arrange computerised maps of canals and channels. Director PMIU, Mr Bodla disclosed that G.I.S system was being developed by the unit. He directed that use of political influence for postings /transfers be curtly discouraged.

 

[Neo]

PHSADC vows to set $100 million export target​

PESHAWAR (November 01 2008): The new management of Pakistan Hunting and Sporting Arms Development Company (PHSADC) vowed to bring the sector under regulations and set a target of 100 million dollars for annual export.

Addressing a news conference the newly appointed chairman and acting Chief Operating Officer (COO), PHSADC, Nauman Wazir said that the company would focus 50 per cent of its attention to only the development of cluster in Darra Adam Khel (DAK) and remaining 50 per cent to other parts of the country.

He said that due to security situation, no economic activity is going on in the tribal area. The government has also planned the establishment of Reconstruction Opportunity Zones (ROZs). The aim and purpose of our company is to bring improvement in the arms manufacturing skill of the people in DAK.

"The company plans to promote the skills of the arms manufacturers and would arrange workshop on technical aspect of the sector in the technical institutions of the city," said Nauman Wazir adding that the potential of the export of the sector would be promoted through holding seminars.

He said that a link between the local manufacturers and Pakistan Steel Mills (PSM) would be established for supplying raw materials while an industrial estate with 100 per cent guarantee of electricity would be established where raw material for the units would also be made available.

The big benefit of the company would be regulation and documentation of the arms manufacturers and check on the arms pilferage from the area. The area, he said had been accused for the supply of arms to other parts of the country, the regulation of the sector would help retrieve them. Due to specific importance, the company would give priority to the manufacturing of customised and completely hand made products.

The Board of Directors of the Company, he said has also approved the hiring of 6 consultants and 4 other officials. He said that the company would talk to arms manufacturers from all four provinces on preparation of future strategy. The completion of work on the plan would take one month, which would be a roadmap to be started next month. He said that next three years will be the implementation phase of the company and on the completion of five years, the affairs of the company would be handed over to a strong association of the arms manufacturers.

The company, he said had a seed money of Rs 60 million provided by Pakistan Industrial Development Corporation (PIDC) for its operation while the funds for feasibility studies would also be get approved through PIDC. The company, he said would establish a proofing house comprising of three to four foreign companies that would comprise a common facilitation centre (CFC) and gunsmith factory.

Regarding the performance of the previous management of the company, he said that they had wasted precious period of two and half years. He said that during that period the company held six meetings of the Board of Directors, but failed to initiate.

Pointing towards the former chairman, who was a retired colonel of military and COO, a retired brigadier, the new chairman said that the company did not require the services of retired military personnel but of experts to run it successfully. He agreed with one questioner that the previous management miserably failed.

He said that previous management during two and half years recruited only five persons, which knew only how to get their salaries. But, the present management, he said had hired the services of 6 highly qualified consultants while four others would be appointed shortly. The strength of the employees, he said would be shortly raised to 30. He said that two marketing experts would also be hired shortly.