Pakistan Economy - News & Updates

[Neo]

KESC to go for Thar coal power generation in two years ​

Chief executive says investment has started pouring in for coal power generation plants​

Wednesday, July 08, 2009

KARACHI: The Karachi Electric Supply Company will go for Thar coal in coming two to three years as the company gains some financial strength.

“We are now getting investments in KESC from May 2009 with the signing of the final agreement,” the KESC chief executive officer Naveed Ismail said during his visit to the Korangi Association of Trade and Industry (KATI) on Tuesday to meet industrialists.

He informed that KESC is working on three coal power plants to reduce the dependence on furnace oil and gas. He emphasized that coal and hydropower are the only two cheap and reliable options available to Pakistan.

He rebuffed the reports that coal in Sindh is not suitable for power generation. “Coal in Sindh is usable. Our future generation will never forgive us if we fail in utilizing Thar coal.”

A large number of industrialists lauded the efforts of present management of KESC and their consistent improvement in power distribution; they said that for the first time in the history of KESC they are dealing with professional team.

Ismail said that KESC has been criticised because what should have been delivered has not been delivered in last three years. “Though, we took charge 10 months back, only six weeks back in May 2009 we have taken over the company completely,” he said.

Ismail said that load-shedding in industrial areas is less because, “we want our industry to run uninterruptedly and that people can retain their jobs. The other reasons are that there are less power thefts in industrial areas and we get better revenue also.”

Kaukab Iqbal, Chairman, Consumers Association of Pakistan said that average billing is unjust for those who are now conserving energy with more power savers and paying electricity bills honestly.

On replying a query about average billing, KESC chief said, “we are trying to reduce average billing from 15 per cent.”

Revival of KESC is the revival of Karachi, he said adding, “I assure that every coming week and month will be better than previous one.”

He informed that over 50 MW power consumption increases with the rise of single degree mercury in Karachi and power consumption is continuously rising in this summer which is 2300 MW per day till date.

“We are certainly in problems as far as our debts and debtors’ are concerned. We have Rs36 billion on our customers, which also include many government departments, Ismail said.

He asked industrialists for their support and said, “we are ready to settle our various issues out of courts in order to save time and energy.”

On disconnection of illegal connections, he informed, “we are disconnecting some 55,000 to 60,000 illegal connections a day without taking any pressures from influentials.”

Industrialists complained that KESC complaint centres don’t receive phone calls and if they do they generally don’t know where faults occur and how and when their team can restore the system.

The CEO of KESC accepted the fact that their complaint centres need much more improvement. “We have raised complaint centre staff to 300 from just 25 employees when we took over the company however, still we need raise this figure to 500 for better results.”

He lamented that KESC collect various government taxes with electricity bills which is the duty of FBR, and this also affect our customers’ as their monthly bill increase by 22 to 25 per cent owing to these taxes.

When asked would he register FIR against the influential people who are caught in power thefts, he said, “Yes, now I am thinking about it. There are numerous big names that have been caught in electricity theft.”

Mian Zahid Hussain, Chairman, Korangi Association of Trade and Industry (KATI) said that the recovery of KESC from KATI is 97 per cent and there is no power theft in our industrial zone.

Hussain added that though industrial areas are exempt from load-shedding but owing to the heavy load-shedding in residential areas our workers efficiency is being affected daily in industries.

He asked KESC management to reduce line losses and power thefts as this burden is being drawn to the honest power consumers.

“KESC team is media shy. KESC should also face media and convince them because KESC is working better now and they have enough relevant points to make before media,” he suggested.

 

[Neo]

Karachi fourth in world’s cheapest cities ​

Wednesday, July 08, 2009

ISLAMABAD: A global survey naming Tokyo and Osaka as the world’s most expensive cities for expatriates, largely due to the strength of the yen against the US dollar, rated Karachi as the fourth amongst the most cheapest cities of the world, as it stands on 140th position in the list of most priciest 143 cities.

The 2009 Cost of Living survey, by consultancy firm Mercer, covered 143 cities across the world, measuring the comparative cost of over 200 items, including housing, transport, food, clothing, entertainment and household goods, Geo News reported.

Tokyo, last year’s second most expensive city, climbed to the top spot, knocking Moscow down to number 3. Geneva and Hong Kong ranked 4th and 5th, with Asian and European cities dominating the top 10 slots. The survey, conducted in March, uses New York as the base city for the index, with currency moves measured against the dollar. New York itself jumped to 8th from 22nd last year.

“As a direct impact of the economic downturn over the last year, we have observed significant fluctuations in most of the world’s currencies, which have had a profound impact on this year’s rankings,” said Nathalie Constantin-Metral, a senior researcher at Mercer.

 

[Neo]

Trade caravan planned for China, Kyrgyzstan ​

Wednesday, July 08, 2009

KARACHI: Pakistan’s trade caravan to China, Kyrgyzstan and Kazakhstan will start its journey from Karachi on October 15 to explore business opportunities there and to project Pakistan’s trade and investment potential.

Initially, it will consist of a 150-member delegation and other members of the business community will join them later from different cities of the country making total number of delegates to 450.

This 20-day important business tour has been initiated by Pakistan’s Embassy in Almaty (Kazakhstan) in collaboration with Trade Development Authority of Pakistan. In a meeting with members of Karachi Chamber of Commerce and Industry here at the Chamber on Tuesday, Pakistan’s Ambassador to Almaty Irfan-ur-Rehman Raja said Kazakhstan retains a large market for Pakistani goods especially furniture, garments, food items, pharmaceutical, surgical goods and jewellery.

He said Kazakhstan can prove one of the best business avenues for Pakistan. Its annual exports figure $31 billion. Kazakhstan bristles with a very education rate, he said. “You will find many local business partners in Kazakhstan. Through whom you can also get exemption from various taxes and duties there,” he asserted.

Raja informed the KCCI members that construction work on Shahra-e-Karakorum was being carried on fast track by a Chinese company. To escape closure of this road linkage with China and Central Asian States during winter and monsoon seasons, 66 tunnels, open and close, were being constructed along with Shahra-e-Karakorum. With the completion of this construction work, undistrupted communication with these neighbouring countries would be ensured.

This would be very helpful in promoting trade and investment between Pakistan and these countries. Pakistan’s ambassador to Almaty said the maximum participation by the business community in the trade caravan would be appreciated by the Pakistan government.

President KCCI Anjum Nisar said many KCCI members companies were eager to invest in Kazakhstan especially in joint ventures. He said the KCCI gives big importance to this trade caravan. He assured that KCCI would welcome exchange of business information with the Pakistan’s embassy in Almaty.

 

[Neo]

Global Enabling Trade Report 2009: Pakistan 100th among 121 countries
​

ISLAMABAD: Pakistan has been ranked 100 among 121 world economies featured in ‘The Global Enabling Trade Report 2009’– a drop of 16 places. Pakistan’s neighbors secured slightly better positions even though their ranking deteriorated, India placed 76 and Sri Lanka 78 compared to 71 & 70 last year. Bangladesh slipped one spot to 111 while Nepal improved to 110 from 116.

East Asian economies - Hong Kong and Singapore - occupy the top two positions in the Enabling Trade Index ranking, followed by Switzerland, Denmark and Sweden, according to The Global Enabling Trade Report 2009, released by the World Economic Forum. Canada, Norway, Finland, Austria, the Netherlands, New Zealand and Germany complete the top 12 standings.

The Report, second edition, aims at presenting a cross-country analysis of the large number of measures facilitating trade. The Enabling Trade Index captures the free flow of goods over borders and to destination.

The Report comes at a crucial time for global trade, as overall economic activity declines, trade volumes drop and public authorities adopt counter-cyclical stimulus policies and institutional reforms.

The Enabling Trade Index, featured in the report, measures the factors, policies and services facilitating the free flow of goods over borders and to destination. The index breaks the enablers into four overall issue areas: market access, border administration, transport and communications infrastructure and the business environment.

Chief Executive Officer of the Competitiveness Support Fund Arthur Bayhan, the partner institution for the World Economic Forum in Pakistan, said: “Pakistan needs to put immediate attention to facilitate an environment conducive to trade and investment, including a transparent and efficient border administration, well developed transport infrastructure and highly efficient services.”

He said in improving its ranking in the Global Enabling Trade Report Pakistan would play a crucial role for trade transactions between Afghanistan and India. Pakistan would be a transport hub for Central Asia to reach the sea transport facilities in Karachi and Gwadar. Furthermore, through the new trade corridor and Karakoram Highway Pakistan would increase its competitiveness in trade and investment.

Pakistan ranked 111 in the market access pillar, 63rd in business administration, 80 in transport and communications infrastructure and 102 in business environment.

“The current challenge is to ensure not only that countries not pull each other down further by restraining trade, but that they help recovery by trading with each other. Further enabling trade across borders can mitigate the effect of the global crisis, as measures facilitating trade will reduce the transaction cost of trade and therefore partially offset the effects of the demand slump. The report provides guidance on measures that need to be taken,” said Robert Z. Lawrence, Albert L. Williams Professor of Trade and Investment at the John F. Kennedy School of Government at Harvard University, USA. Professor Lawrence is also academic adviser and co-editor of the report.

“Over the last two years, the World Economic Forum has engaged key industry leaders, academics and international organizations active in the area of trade to identify the main obstacles to trading across borders and to develop the Enabling Trade Index. The goal was to construct a platform for multi-stakeholder dialogue and to create broad-based support to counter protectionist sentiment from building in the present crisis,” said Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

The report also features a number of contributions from trade experts and industry practitioners exploring different aspects of trade enablement. A particular focus has been placed this year on customs, one of the key areas of the Doha negotiations on trade facilitation. Also included are detailed profiles for each of the economies covered by the study.

The report also features a number of contributions from trade experts and practitioners with relevant knowledge and experience in reducing barriers to trade and national trade performance. Also included is an extensive section of data tables, including each indicator used in the Enabling Trade Index’s computation.

 

[Neo]

Pakistan meets IMF amid struggle to revive growth​

KARACHI: Pakistani officials meeting an International Monetary Fund mission this week face a battle in mapping out a strategy for reviving economic growth while keeping fiscal spending in check, analysts said.

Officials are currently meeting the mission in the Turkish city of Istanbul to discuss Pakistan’s performance under its $7.6 billion IMF programme, launched last November to help the country avert a balance of payments crisis.

The programme has got off to a good start, with inflation easing and the central bank’s foreign exchange reserves back above $8 billion after falling to $3.3 billion last November, the IMF said in a report in late June.

But the fight against Taliban militants in the northwest, uncertainties created by the slump in global demand and domestic power shortages all add to the challenge of pulling the economy out of what is likely to be an extended phase of sluggish activity, analysts say.

“Pakistan’s economy has likely entered an extended phase of low growth, a trend that would require rigorous economic planning and its successful execution to address the entrenched structural weaknesses,” said Asif Qureshi, a director at Invisor Securities.

Pakistan is looking to secure the roughly $875 million third tranche of the IMF loan, which was originally meant to be disbursed in June. The IMF board is now set to meet by the end of this month to take a decision on the release of the instalment.

While both officials and analysts expect the money to be released, the talks put the spotlight on the difficulties facing the economy and the government’s plans for dealing with them.

Economic growth slid to 2 percent in the 2008/09 fiscal year ended on June 30, tantamount to recession for a country with annual population growth of more than 2 percent and with more than a third of its 170 million people living in poverty.

Combating Islamic militancy is likely to cost billions of dollars over the next few years, analysts estimate, and increased dependence on foreign funding will not make the task of jump-starting growth any easier.

“Funding is a big concern, as we are still not sure about the money that should be coming from the Friends of Pakistan,” a senior government official said, referring to a group of international donors which met in Tokyo in April.

The 2009/10 budget, unveiled last month, has already factored in 178 billion rupees ($2.18 billion) of aid from that group, and the government is still seeking money from friendly governments and international lenders.

Adding to the troubles, widespread power outages resulting from the country’s roughly 3,000 MW power deficit are hurting the textile sector, the country’s main exporter.

The government’s continuing subsidies for electricity are one of the key sticking points of its talks with the IMF.

The IMF wants the government to increase power tariffs to shore up its balance sheet, but doing so would be politically sensitive as it would add insult to the injury of frequent power cuts for many of the country’s residents.

“Given the weak political and security situation of the country and poor governance, both domestic and foreign private sector investment activity is also likely to remain muted,” said Invisor’s Qureshi. reuters

 

[Neo]

Businessmen for banning cotton export ​

ISLAMABAD: Despite bumper cotton crop this year, the textile industry was confronting shortage of cotton; therefore, government should ban the export of cotton to bring stability in the domestic market.

During a meeting President, Islamabad Chamber of Commerce & Industry (ICCI) Mian Shaukat Masud said that cotton production might exceed the target of 13.36 million bales in 2009-10 following increased sowing in Punjab and Sindh and usage of Bt seed for the current financial year.

The cotton production remained 2.7 million bales below the set target of 14.1 million bales during the outgoing fiscal on account of non-supply of better quality seed, short supply of quality inputs and insufficient water supply and stressed upon the government to address these issues on priority to meet the cotton targets in future.

 

[Neo]

Chinese delegation discusses development projects with governor ​

PESHAWAR (July 08 2009): A three-member delegation, representing a consortium of five Chinese construction firms called on the NWFP Governor Owais Ahmed Ghani at Governor's House, Peshawar on Tuesday and discussed possibilities pertaining to construction of mega development projects in the provincial capital.

Provincial Senior Minister Bashir Ahmed Bilour who also holds the portfolio of Local Government and Rural Development, Minister for Transport and Information, Mian Iftikhar Hussain, Additional Chief Secretary, Ghulam Dastagir Akhtar, Secretary to Governor, Arbab Muhammad Arif, Secretary Local Government and Rural Development, Hifz-ur-Rehman and the senior officers of Peshawar Development Authority attended the meeting.

The Governor welcomed the interest of the consortium in the development of civic amenities of Peshawar City, especially the construction of its General Bus Terminal and said, "while the master planning of the entire city indeed needs to be revisited, the immediate needs of the citizens have to be provided on priority basis as well and this project is of great importance in this respect".

He also expressed the hope of having productive relationships with the Chinese investors in the development of the historic city of Peshawar. The General Bus Terminal, he said, if fully materialised through them, would indeed be a good addition in the long list of the joint ventures between both the countries.

 

[Neo]

Increasing agriculture production and exports: 'Saarc states have to ensure world quality standards' ​

ISLAMABAD (July 08 2009): Under WTO regime, all Saarc countries have to ensure international quality standards including sanitary, phyto-sanitary measures for increasing agriculture production and exports. Secretary Local Government and Rural Development Muhammad Saleem Khan Jhagra expressed these views during second day of workshop on "Role of Media in accelerating agriculture production in Saarc countries" here on Tuesday.

The developing countries have to do more for complying with international standards. In Saarc countries, he said mostly land was used in unplanned manner resulting in low production. Due to lack of education, the growers usually fail to properly use fertilisers, which affect the agriculture production in member states.

The secretary recommended that the centralised Information Center at Saarc level should be strengthen for greater benefits to farmers. Visual media has good impact on educating farmers about new skills and technologies; however, its excess was limited to main urban centers. He also stressed the need for expanding computer literacy so that the farmers might be well informed about development in advanced countries.

Agriculture Development Commissioner Qadir Bux Baloch in his presentation said agriculture sector in regional countries is confronting several hurdles including water shortage, environmental degradation, and non-availability of certified seeds, fertiliser, pesticides and climate change.

In such situation member countries have to sought out collective solution from single platform because the Saarc countries have similar situation. He said food security was big issue, confronting the member states and it required proper attention. In this regard media could play an important role in dissemination of latest information about agriculture development.

He identified some issues related to agriculture inputs like agriculture credit, farm mechanisation, irrigation water, availability of fertilisers, seeds and planting materials, plant protection measures and transfer of technology. According to ADC, the member states also confronting some agricultural outputs issues like post harvest losses, storage capacities, marketing problems, processing and grading, standard/quality of produce and compliance of rules.

To resolve all these issue he stressed the need for collective efforts so as to make agriculture sector a profitable business and ensure food security among members. He said extending all kind of support to media to facilitate transfer of technology from research institute to farmers to boost agricultural production and quality for socio-economic development was a component of "agricultural Policy of Pakistan".

"Mass communication" was one of the strongest methods in transferring technology among the rural people through radio, television, documentary films and print media specially poster, folder, leaflet, booklet, newsletter, magazine, banner, festoon and so on.

 

[Neo]

About 45,000 tons of mangoes exported in 2008-09 ​

LAHORE (July 07 2009): Pakistan has exported around 45,000 tons of mangoes till June 30, 2009 which is almost double of the quantity exported previous year during the same period. Pakistan Horticulture Development and Export Board (PHDEB) has fixed an export target of 100,000 tons of mangoes this year (2009 season), and keeping in view the present exports figure, the Board is hopeful that it will achieve this target.

PHDEB Chief Executive Officer (CEO) Shamoon Sadiq, while talking to Business Recorder here on Monday, said, "If things go smooth they hope to get 50 million dollars through export of mangoes this year." Talking about various initiatives taken by the Board this year for enhancing export of horticulture products, especially mangoes, Shamoon added that he had recently visited Germany to explore market for the export of mangoes. He said, "Germany has a great potential for Pakistani mangoes provided our farmers and exporters fulfil their requirements such as GlobalGap and other certain certifications."

He said importers from Germany had assured him that if their requirements were fulfilled there would be no issue in buying mangoes from Pakistan. Shamoon said during his visit to Germany they had received two orders out of which one party wanted almost two tons of mangoes per week and other needed more than that.

It may be mentioned here that according to the Mango Development Strategy devised by PHDEB for the current year, they had the plan to target new markets such as China, Jordan, Germany and USA.

"In the long-term, PHDEB has set itself a mango export target of $80 million by the year 2011-12. Although there is a huge potential to capitalise the high end markets, but this would only be possible if we can comply with quarantine requirements of the importers, which means adapting quality standards throughout the supply chain." "An important component is to establish required infrastructure such as packing houses with Hot Water Dip facilities and cold storage at production areas."

He said on the compliance side, PHDEB had already initiated EurepGAP programme both in Punjab and Sindh. "This year PHDEB plans to expand this programme to bring maximum mango orchards under GlobalGAP scheme, which will ultimately support in enhancing mango exports to the higher end markets," he added.

It was expected that 3,000 acres mango orchards would get GlobalGAP certification in Punjab and 2000 in Sindh. While three awareness seminars on SPS, one in Sindh and 2 in Punjab would be held.

The adoption of GlobalGAP standards had indicated that the possibilities for development of indigenous commodity specific standards for either local or export marketing should be initiated, he said Initially the PakGAP standards would be developed in consultations with relevant organisations/certification bodies, Shamoon concluded.

 

[Gin ka Pakistan]

I just bought some Pakistani Mangoes here from a Desi store and they are the best as compare to Mexican mangoes available at Gora stores.

 

[Neo]

$10bn investment target to be met: minister ​

Thursday, July 09, 2009

ISLAMABAD: The Federal Minister for Investment, Waqar Ahmed Khan, said here on Wednesday that the ministry would achieve its $10 billion investment target by the year’s end.

Talking to journalists, he said that the ministry has already attracted investment of $5 billion so far. He said that Pakistan was a growing economy, having vast investment opportunities with lucrative returns, adding that due to economic prudence and business-friendly policies, the government has attracted potential investors.

He noted that China Mobile was an investment success story in Pakistan and more investment worth $1 billion is coming in a year due to the expansion of the mobile company’s network. China Mobile is hosting an international seminar in China to share their experience of profitable investment in Pakistan, he said, adding that fifteen leading mobile companies of the world would participate in the seminar.

The minister said that the government was concentrating on the development of the power sector on priority basis to deal with the energy shortfall, particularly in the textile and manufacturing sectors. He said that import of 1.5 million tons of LNG and one million tons of LPG from Qatar would help provide consistent power supply to the industrial sector.

 

[Neo]

Rs 29.371 billion profit earned by OMCs in seven years: Judicial Commission report ​

ISLAMABAD (July 09 2009): The Judicial Commission, headed by former justice Rana Bhagwandas probing the petroleum pricing mechanism, has revealed that oil marketing companies (OMCs) have earned a windfall profit of Rs 29.371 billion during the last seven years.

A financial summary of seven major OMCs, exposed in the commission's report, showed that their net profits increased from Rs 8.266 billion in 2001-02 to Rs 29.371 billion in 2007-08, a rise of 355.3 percent. The OMCs earned this windfall profit after Oil Companies Advisory Committee (OCAC), direct beneficiary of oil business, and was allowed to determine the oil prices.

The decision to this effect was taken by former president general Pervez Musharraf (Retd) as Chief Executive in December 1999 on a summary forwarded to him by the Ministry of Petroleum and Natural Resources. Pakistan State Oil Limited's net profit rose from Rs 3.188 billion in 2001-02 to Rs 14.054 billion in 2007-08 - a 440 percent rise in profit.

The increase in Shell Pakistan Limited's net profit was over 483 percent during the period under review, which swelled to Rs 5.137 billion in 2007-08 from Rs 1.063 billion in 2001-02 whereas net profit Pakistan Refinery Limited after 3516 percent increase in 2007-08 over 2001-02 surged from Rs 60 million to Rs 2.110 billion. Profit of Shell Pakistan Limited went up from Rs 1.063 billion in 2001-02 to Rs 5.127 billion in 2007-08 - an increase of 483 percent.

The net profit of Chevron Pakistan Limited, formerly known as Caltex, soared from Rs 624 million in 2001-02 to Rs 1.054 billion in 2007-08, registering an increase of 170 percent during the period, while the profit of Attock Petroleum Limited registered an increase of 1398 percent - from Rs 189 million in 2001-02 to Rs 2.642 billion in 2007-08.

The report further revealed that during the course of investigation undertaken by the commission, the oil companies, refineries, OCAC and Oil and Gas Regulatory Authority (Ogra), attempted to conceal evidence of windfall profits. The report said that Collector of Customs (Preventive) was directed to submit the bill of lading in respect of import of oil products by the oil companies in order to find out the actual cost, premium and freight paid.

But despite hectic efforts by the Collectorate of Customs, Karachi, oil companies refused to divulge information on the premise that FoB cost, available with them, comprised the cost of product and premium paid thereon, which included freight as well as the trading profit of seller. The commission's report concluded that it did not receive a positive response when it requested information on break-up of premium between freight and traders from the high officials of the PSO and Shell Pakistan.

 

[Neo]

Country has 20,000 MW electricity generating capacity ​

ISLAMABAD (July 09, 2009): Minister for water and Power Raja Pervez Ashraf has said that the country has capacity to produce 20,000mw electricity.

Talking to local TV channel he said that at the moment, the total generating capacity is 15,000-16,000 MW if all units run smoothly. Out of this 6,500 MW is being generated from Hydro and remaining from Thermal units, nuclear energy and 1 percent from coal energy.

Minister highlighted that the total shortfall is from 300 to 3500 MW. Actually, the shortfall occurred because they did not install any new power generating plant for the past seven eight years whereas electricity demands increases approximately eight percent annually.

Certainly there would be mismanagement, but the real reason for load shedding is gap between supply and demand, he said.

The Government has succeeded to bring four billion dollars investment in power sector, he said.

The minister said that our government soon after taking power expedited the IPPs. In this regard he said that our government generated 90 billion rupees and paid it to the PEPCO and other power distribution companies.

"At the moment all plants are running on their full capacity," he stated.

To another question about KESC, he said that previous government privatized to the KESC and NEPRA is authorized to take action against it if any complaint is received. There is system constraints in KESC. Its system is outdated and they promised to invest 361 million dollars in it.

Basically, Kuwaitti and Saudis took the KESC, they have changes their operation and maintenance management. The payment of the electricity given to the WAPDA employees are collected by their concerned companies, he added.

Commenting on war on terror, Raja Pervez said, "we did not start war on terror with our own liking. I think,it was imposed on Pakistan, we are fighting for our survival and we are in a state of war." Reuters

 

[Neo]

Pakistan’s Inflation Slows, Giving Room for Rate Cut ​

July 9 (Bloomberg) -- Pakistan’s inflation slowed to a 16- month low in June, giving the central bank scope to lower interest rates to prop up a faltering economy.

Consumer prices in South Asia’s second-largest economy rose 13.13 percent from a year earlier after gaining 14.39 percent in May, the Federal Bureau of Statistics said on its Web site today. That matched the median 13.1 percent forecast in a Bloomberg News survey of nine economists.

Pakistan’s economy has ground to a near halt as the global recession erodes exports and foreign investment and Taliban insurgents launch terrorist attacks in response to an intensified military campaign against Islamic extremists. The $146 billion economy may expand as little as 0.8 percent in the year to June 2010, according to HSBC Holdings Plc.

Security concerns may “hamper growth over the coming year as investors and consumers further rein in spending,” said Frederic Neumann, an economist at HSBC in Hong Kong. “The good news is that the central bank can begin to relax and start cutting interest rates, which should eventually nurse a recovery.”

 

[Neo]

Loadshedding will end on permanent basis: minister ​

MIRPUR (July 09 2009): Federal Minister for Water and Power Raja Pervez Ashraf here on Wednesday reiterated the government resolve to get the country out of the menace of loadshedding on permanent basis by end of this year. The minister declared that full power generation process from Mangla power house will be restored by 25th of this month.

He said that round-the-clock work for restoration of power from the country's second biggest reservoir was in progress. He was addressing a press conference here at Power House Mangla after visiting the recently-affected portion of the switchyard of the power station. Wapda Chairman Shakeel Durrani, Pepco Managing Director Tahir Basharat Cheema and other senior officials of Wapda and Pepco were also present on this occasion.

The minister said that the process of generation of 220 MW power from the Mangla power station will start in next couple of days. Raja Pervez Ashraf said the sudden breakdown from Mangla station was not less than a national tragedy. He said that with the collapse of the power generation process from 1100 MW power station, the nation had to face the shortfall of over 4600 MW of power.

He said that this shortfall was being reduced through various emergency steps taken by the government. The minister said that Pakistan would need power of about 100000 MW by the year 2025 and for this purpose, the incumbent government has started working on an integrated plan to fully meet the future needs. He said that Wapda could not bear such major incidents causing huge shortfall of electricity.

He said besides the common man, the business community and industrialists were also facing the loadshedding problem. He said that no negligence on the part of Wapda or Pepco causing such power breakdown will be tolerated in future.

He appreciated the workers who are engaged in the restoration of power from Mangla power station. The minister said that all those staff of Wapda deserve applause, who did not care about danger to their life during maintenance of the power plant.

He announced the award of an additional salary of two months for the staff members who immediately brought fire under control, which caused damage to only 20-feet portion of the cable linking the turbines to switch room of the national grid station at Mangla. He said that alternative arrangements were being made to meet the shortfall of power on emergency basis.

He said that work was in progress at Kohala, and Neelam Jhelum power projects besides upraising of the Mangla dam. He revealed that the government was also engaged to sign agreements with China and UAE to launch power generation projects in various parts of Pakistan.

While, steps were also being taken to import power from Iran, Kyrgyzstan and Tajikistan to meet the needs of power in the country. The minister issued orders of suspension of four senior officers of Wapda including Chief Engineer Mangla Chaudhry Muhammad Ashraf, Assistant Chief Engineer Karim Nawaz, General Manager Hydro, Azher Masood Panni and Resident Engineer Riaz Ahmed for sheer negligence of duties that allegedly caused a mega disaster at Mangla power station.