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ISLAMABAD, Jul 26 (APP): The current tourism policy though framed back in 1990, but still guiding the business of country’s tourism sector inspite of falling miserably short to meet modern-days’ needs of this growing field, would soon be replaced with new one, which the officials believe would boost tourism industry.A committee headed by Federal Secretary Tourism comprising provincial tourism secretaries as well as tourism officials from AJK and Northern Areas has been formed to work out new tourism policy.

This committee was formed by Minister for Tourism Maulana Atta ur Rahman at the Inter-ministerial Meeting on Promotion of Tourism recently held.
Maulana Atta ur Rahman said the existing tourism policy was devised in 1990 and it was still in place with no changes at all.

“In 2007, this two-decade old policy was re-printed and circulated, however, nothing new was added,” the minister said and urged the provincial tourism ministers to co-ordinate with the Federal Tourism Ministry with regard to formulating new policy on tourism.

“In the new policy, we intend to make concerted and serious efforts with the provinces, private sector, travel agencies and all others who are affiliated with tourism to boost our tourism industry,” the minister said.

The provincial tourism ministers were requested to contribute their suggestions and feedback regarding new tourism policy.

It was decided that Inter-ministerial meeting be in the first of week of each month.

Hoping to cash in on growing numbers of tourists, Pakistan is about to announce a comprehensive plan to expand the tourism sector through generous incentives to private investors.

Pakistan has a varied geography stretching from the torrid Arabian Sea to the frozen Hindu Kush, the Himalayas and the Karakoram.

Tourism has become an important earner of hard currency for many Asian countries, and Pakistan hopes it will prove the same here.

In developing beach and mountain resorts as well as historic sites, Pakistan hopes to expand employment and improve human resources through training in the tourism industry.
 

ISLAMABAD (July 27 2009): Commerce Minister Amin Fahim is unveiling three years 2009-12 Strategic Trade Policy Framework (STPF) today according to which 29 percent in exports growth will be projected ie 6 percent in 2009-10, 10 percent and 13 percent in the successive years, sources in Cabinet Division told Business Recorder.

They said that 25-30 percent inland freight subsidy would be announced for cement, marble and engineering goods, official sources told Business Recorder. They said that Commerce Minister would also announce 7-10 percent subsidy on export of seafood items, as this sector is facing hardships due to stringent conditions of the European Union (EU), which is the major buyer.

"Four other major measures to be announced in the Trade Policy are: establishment of a hedge fund to suck up any revision in interest rate; insurance of foreign buyers; credit availability for the industrial sector; and compulsory contractual obligation by Wapda regarding power supply to the industrial sector," sources said. They said that to boost exports, customs duty on import of manmade fibres, other than polyester staple fibre, would be reduced to zero, besides withdrawal of customs duty on import of sizing chemicals.

"Warehouses will be established in major markets for brand development program to launch domestic and international brands. Rationalisation of tariff on the principle of cascading to provide the exporting industry with an environment which supports manufacturing rather than trading is also part of the STPF," sources added.

Before the announcement, the Trade Policy framework will be presented to the Cabinet for formal approval. The Cabinet is expected to grill Commerce Ministry''s top brass for failing to achieve exports target for 2008-09. Earlier, Commerce Ministry had planned to announce the Trade Policy on July 29, but it was rescheduled as the Commerce Minister will accompany President Asif Ali Zardari during his tour to Tajikistan from July 28. This means that Commerce Secretary Suleman Ghani will address the post-Trade Policy press conference on July 28.

The current year''s export target will be more or less $19.6 billion.

A couple of days ago, Prime Minister Yousaf Raza Gilani had also expressed dismay over the performance of Commerce Ministry in not achieving the export target despite spending most of the time on foreign tours .

The Prime Minister had also turned down a proposal of Commerce Ministry regarding import of three years old sports motorcycles by paying nominal duty. However, disabled persons are being allowed to import used cars on subsidised rate of duty.

In reply to a question, sources said that there would be no change in import policy for used cars despite pressure from the local car manufacturers.

Replying to a question, sources said that there would be nothing special in the Trade Policy with regard to trade with India, like the past. Instead; the Commerce Minister would announce a ban on import of vaccine from India directly. Pakistani companies would be directed to import vaccine from only those Indian firms which are certified by the World Health Organisation (WHO).

Sources said that Commerce Ministry would also envisage signing of Free Trade Agreements (FTAs) with the European Union(EU) and the United States of American(USA). They said that for diversification of exports mixed customs duty would be reduced to zero on import of manmade fibres, other than polyester fibre.

According to sources, initiatives will be taken for greater market access, developing and enlarging acceptability of Pakistan''s textiles and clothing in niche markets and diversification of exports to newer destinations. For this purpose, Free Trade Agreement(FTAs) would be proposed with the EU and USA.

The government would try to get special dispensation under the EU-GSP Scheme. The establishment of Re-construction Opportunity Zones (ROZs) will provide facility of exports to US at zero duty.

After the finalisations of the sites of Zones, the Ministry would set up a dedicated organisation with functional linkages with the provincial governments to ensure efficient utilisation of the facilities, and enforce the compliance issues.

According to sources, initiatives to promote more effective holding of local and participation in foreign exhibitions Pakistan is undertaking concrete measures for the greening of the economy and would see the climate change talks succeed but would resist any effort to misuse the climate change concerns as an NTB or TBT. "Meat and meat products, services sector gemstone and jewellery, agro processing and dairy are also at the centre of STPF, sources added.
 

LAHORE (July 27 2009): Senior Advisor to Chief Minister Punjab, Sardar Zulfiqar Ali Khan Khosa has said that first time in the history of Pakistan, the present government has initiated projects of Rs 135 billion for Southern Punjab in the Annual Development Programme. In a statement here on Sunday Sardar Khosa contradicted PML (Q) leader Chaudhry Pervaiz Elahi's allegation that Shahbaz Sharif government had ignored development needs of Southern Punjab.

He said if Pervaiz Elahi had read newspapers regularly, he would have been aware of the fact that development package of Rs five billion announced by Punjab Chief Minister, Shahbaz Sharif for Southern Punjab is in addition to the funds and projects of Annual Development Programme. "It seems that due to the fear of bad news about PML-Q, the party leadership has given up reading the newspapers," he taunted.

Khosa said the former Chief Minister Elahi has mentioned allocation of Rs 117 billion during his tenure but practically the projects of even Rs 17 crore were not implemented for Southern Punjab in his regime. He said the people of Southern Punjab are asking where these Rs 117 billion were spent. It would be better if Elahi had narrated the details of those so-called development projects on which Rs 117 billion were spent.

Khosa said had a little amount out of these funds been spent in Southern Punjab, Elahi would not have been defeated from Yazman.
 

ISLAMABAD (July 26 2009): Minister for Information and Broadcasting Qamar Zaman Kaira impressively highlighted Pakistan's principled stance on Kashmir as well as role in war against terrorism during his visit to Brussels. He urged the advanced countries to provide Pakistan latest technology in the field of agriculture and industries to help overcome poverty.

The Minister reached Brussels Saturday morning on a three-day visit to the European Union's Capital and during his stay attended various functions including Kashmir Week activities. The Kashmir Week was a joint initiative of Kashmir Centre, Brussels and the All Party Group for Kashmir in the European Parliament.

The Minister also held meetings with high officials of the Belgian government and other European countries. Qamar Zaman Kaira, who has also portfolio of Kashmir Affairs and Northern Areas, while inaugurating the Kashmir Week, urged the international community to play its role for the early resolution of the Kashmir dispute.

He said peace and prosperity of the region depends on the early resolution of this six-decade old issue. Stating that EU had become new power centre in the world, he asked the European leadership to play a proactive role for early settlement of the issue, which had been the cause of three wars between India and Pakistan.

He said Pakistan had always stood by the Kashmiri brethren and it would continue its moral, diplomatic and political support for the cause of Kashmir. About the war on terrorism, he said Pakistan was itself a victim of terrorism and it was its own war. He said that after the elimination of terrorists from the soil of Pakistan, the entire world would benefit as such elements were threat to world peace.

The Minister further said that there was a need for changing the mindset of extremist people and Talibanisation was such a mindset. The ceremony was also attended by EU Member, Jean Lambert and MP Sara Ludford, who in their brief comments said the EU was interested in peaceful resolution of the Kashmir dispute. However they said principally the issue had to be resolved by Pakistan, India and the Kashmiris.

They said the world community was encouraged by high level contact between India and Pakistan at Sharm El Sheikh and hoped that the two countries would find a peaceful solution of the issue through dialogue. Qamar Zaman Kaira also held meetings with Member European Parliament and Chairman All Party Kashmir Group in EU Parliament, James Elles, and Executive Director Kashmir Centre Brussels, Barrister Abdul Majeed Tramboo.

During the meetings, he urged that involvement of Kashmiri leadership in the dialogue process was imperative, as it would help them achieve their right to self-determination. He lauded the role of EU for highlighting the Kashmir issue at the international level. The Minister said Pakistan was a sovereign country and it would not allow anybody to take any action against terrorists on its soil.

James Elles appreciated the agreement to resume composite dialogue process between India and Pakistan on all issues including Kashmir. Barrister Abdul Majeed Tramboo highlighted the activities of Kashmir Centre Brussels in creating awareness about the issue of Kashmir in European Union. The Minister also visited an exhibition of Kashmiri arts and crafts held in connection with the Kashmir Week as well as on human rights violations by the tyrant Indian forces in the Indian occupied Kashmir.

At a reception hosted in his honour by Pakistan Peoples Party (PPP), Belgium at Antwerp, the second largest city of Belgium, he said the present government inherited multiple problems from the previous dictatorial regime and was making efforts to steer the country out of this situation.

On the issue of extremism and terrorism, he said Swat had been cleared off militants in eight weeks and Internally Displaced Persons (IDPs) were returning home. He said only 50 percent of international pledges on IDPs had been fulfilled, but the government of Pakistan was utilising all its resources for rehabilitation of the displaced families.

He told the gathering under the spirit of Charter of Democracy (COD), all the political issues of the country would be resolved. He lauded support of PML-N leader Mian Nawaz Sharif to reconciliatory politics advocated by late leader Benazir Bhutto.

About power shortage, he said that during the tenure of previous regime not a single megawatt was added to the national power system, which resulted in present unfortunate situation. Kaira asked the advanced countries to provide Pakistan latest technology in the field of agriculture and industries, which would be helpful in overcoming poverty.

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ISLAMABAD (July 26 2009): The Federal Minister for Investment, Waqar Ahmed Khan, said on Saturday that Pakistan was encouraging potential Chinese companies for investment in the country's various areas, particularly in the direly needed energy sector. He was discussing investment scenario with a Chinese delegation, led by the Chinese Ambassador in Pakistan Lue Zhaohui, who called on the minister in his chamber in Cabinet Division here.

The minister said that China is Pakistan's strategic partner and time-tested friend, and Pakistan attaches the highest importance to China's progress and prosperity. He expressed satisfaction over the strength of bilateral relations which are underpinned by mutual interest and mutual trust. The minister hailed China's continued assistance in various fields and said that Pakistan would welcome more Chinese companies to invest.

He also highlighted various areas for future Chinese investment, which included infrastructure, agriculture, health, construction of small and medium size dams, and banking sectors.

"We have special focus on the development of energy sectors, and offering Chinese potential companies to invest, particularly in power projects like Thar coal, and conducting hydrological and geological studies", he said. Waqar said: "We have technology in our neighbourhood, and Pakistan would welcome more Chinese participation in development projects and for this purpose we will ensure security and protection of Chinese investors in Pakistan".

He apprised the Ambassador regarding task force meeting, which was held to review the follow-up actions taken on the President's directives to expedite various co-operative agreements in areas including building of dams, Thar coal project, transfer of hybrid technology co-operation between PARC and Chinese Academy of Agricultural Sciences (CAAS), export of northern areas fruits to China, MOUs on development of fisheries and sugarcane and the joint Pak-China economic commission.

He also discussed other projects being executed by Chinese companies in rest of the country and Balochistan. Waqar said that both sides were making efforts for convening joint economic group meeting to boost economic and commercial ties.

The minister reiterated Pakistan's support for China's sovereignty, stability, and progress, and expressed his heartiest felicitation to the Chinese's government and its people on the eve of 60th anniversary of China's independence. The Ambassador of China hailed the government's new liberal investment policies and strenuous efforts to resolve the issues of the investors.

He informed the minister regarding Chinese companies' desire to invest in different areas of energy sector; including hydropower. The Ambassador assured the minister that China would take part in all the major projects to share their expertise with Pakistan.-PR
 


* Six percent growth target set for current fiscal year
* Five funds to be created to promote exports
* Insurance cover to be provided to visiting foreign buyers

By Sajid Chaudhry

ISLAMABAD: The government announced a somewhat lacklustre trade policy for 2009-10 and the trade policy framework for 2009-12 on Monday. However, there seems a conscious attempt to create foreign investment-friendly conditions, with a growth target of 6 percent set for the current fiscal year.

The federal minister for commerce unveiled the initiatives, and said the government would provide insurance cover to visiting foreign buyers.

Also, five funds are to be established to promote exports – a fund to hedge mark up rate hikes; an export investment support fund; a technology, skill and management improvement fund; a special fund for the light engineering sector; and a services export development fund.

He said an inland freight subsidy on the export of seven types of products would be available, but announced a ban on the import of vaccines from India.

The import of used ambulances with a minimum useful life of 10 years would be allowed if donated to a charitable or non-profit organisation.

Major initiatives:

* Duty-free import of customised cars up to 1,350CC allowed for disabled people

* Vehicles imported by overseas Pakistanis to be released to legal heir in case of death

* Duty-free import of one used motorised wheelchair to be allowed

* Limit for physicians’ samples increased to 20%

* Import of used computer components allowed

* 25% subsidy for brand development activities on surgical instruments, sports goods, cutlery sector

* Research and development centres to be established in Karachi and Sialkot for leather exporters

* 25% freight subsidy on export of live seafood products by air

* Facility to remit $10,000 per invoice as advance payment for import of spare parts
 

ISLAMABAD, Jul 27 (APP): The Trade Policy 2009‑12 aims to set the country on the path of sustainable high economic growth through exports. “The fundamental principles of the Strategic Trade Policy Framework are rooted in the manifesto of Pakistan People’s Party i.e. Growth with Equity ‑Greater Opportunities for gainful employment,Sound macro‑economic framework for trade environment, Concern with poverty eradication and environmental protection, Investing in Human resources,Targeting Poverty alleviation,Promoting private.

sector as engine of growth, Focus on small scale sector particularly in agriculture”, Makhdoom Amin Fahim Minister for Commerce said while announcing the trade policy 2009‑12 on Radio/TV here on Monday afternoon.

Makhdoom Amin Fahim said that as we all know Pakistan has been facing many difficulties on the non‑economic front, which have led to further deterioration of the business climate.

He said that the issues created due the problems which “we inherited such as energy crises, business closures, declining long term foreign investment have been worsened by the war on terror in which Pakistan is a frontline state”.

He added that the direct and indirect costs of this war do not only include the loss of life, property and business assets, but also the deterioration of country’s image as a result of which the business to business interaction becomes more difficult.

However after a critical phase of weak domestic macroeconomic situation and reduced external demand owing to the global financial crisis, Pakistan economy is now undergoing a recovery phase, he remarked.

Coming to the trade performance of Pakistan, the year 2008‑09, he said that the year witnessed unprecedented economic downturn especially in our major markets of export i.e. USA & EU. Consumption decreased in the developed world and the global trade shrank by 9%.

Global recession adversely affected exporting countries and Pakistan is no exception to it. Exports from Pakistan declined to US$ 17.8 billion as compared to previous year’s exports of US$ 19.1 billion.

Imports also witnessed a relative decline and fell by 13% as Pakistan’s imports during 2008‑09 stood at US $ 34.9 billion as compared to US $ 40.4 billion in 2007‑08.

During 2008‑9, he said the export of Textiles, which account for around 54% of Pakistan’s total exports, dropped from US$ 10.6 billion to US$ 9.6 billion.

The major losers in this regard were Readymade Garments, which dropped by 21.7%, Cotton Yarn, which dropped by 15%, Bed linen, which dropped by 10.2%, Art Silk & Synthetic Textiles, which dropped by 22.1% and Cotton Fabric by 4.0%. The exports of finished leather and leather manufacturers dropped from US$ 1.1 billion to US$ 0.8 billion registering a drop 24.5%.

The Rice exports have registered an impressive growth from US$ 1.84 billion to US$ 1.99 with an increase of 8.2%. Engineering goods also registered an increase of 26.1% from US$ 211.3 to US$ 266.4 million.

In this regard, the major contributors have been the specialized machinery, transport equipment, electric fans etc.

The export of Jewelry also rose from US$ 213.4 million to US$ 288.4 million, registering an increase of 35%, he added.

The Commerce Minister said that taking a long term view of Pakistan’s export performance over the last ten years, Pakistan’s share in the global market, according to WTO data, has declined by more than 1/3 to 0.13% in 2009 from 0.21 % in 1999.

Minister for Commerce Makhdoom Amin Fahim observed that during the last few decades, the global trade has undergone a major structural change as far as the product composition and geography of trade is concerned.

“There has been an explosion of non textile manufactured exports at the global level. Whereas, the share of non‑textile manufactured in Pakistan’s exports has gone down from an already low figure of US $ 5.83 billion (25.08%) in 2007‑08 to US $ 3.12 billion in 2008‑09 (17.32 %)”.

The Minister said that at the same time, our competitor economies, particularly in Asia, have significantly enhanced their share in non‑textile manufactured.

“As far as the Textile and Clothing sectors are concerned, the rate of growth in clothing is much higher than textiles in the international market. Whereas, Pakistan, managing to keep its market share in textiles to an extent, has been slow in benefitting from the expansion in higher value Clothing sector”, he remarked.

He said that the principle reason for this growing disconnect between the evolving global market structure and our export performance is the erosion of the competitiveness of Pakistan’s traditional exports in general and the country’s weakness in diversifying its product and market mix.

In view of the above situation, the government,he said in a true democratic spirit, took all stakeholders on board and has devised a strategy to go all out to remain firm in these difficult economic times, keep focused on our strengths, and convert challenges into workable opportunities. Trade Policy 2009‑12 aims to set the country on the path of sustainable high economic growth through exports.

Mr. Fahim said that the fundamental principles of the Strategic Trade Policy Framework are rooted in the manifesto of Pakistan People’s Party i.e., ‑Growth with Equity,Greater Opportunities for gainful employment,Sound macro‑ economic framework for trade environment,Concern with poverty eradication and environmental protection, Investing in Human resources,Targeting Poverty alleviation, Promoting private sector as engine of growth, Focus on small scale sector particularly in agriculture.

He said that as guided by the prime minister and his cabinet, this policy is geared towards: Contributing towards poverty alleviation, Achieving export led growth and providing relief to the common man through the provision of jobs and services, will focus strongly on development and facilitation Ladies and gentlemen, the policy is set in a three years Strategic Trade Policy Framework (STPF), which “we strongly hope would result in the enhancement of export competitiveness of Pakistan to enable Pakistani companies overcome the shocks of international economic crisis through a set of integrated and holistic policy and measures.

The minister unveiling the Strategic Trade Policy Framework for the next three years, said that it will be a medium term road map in order to ensure certainty of policies which in turn will act as a catalyst in the revival of domestic commerce and international trade in Pakistan, with the precise objective of bringing about a structural transformation in Pakistan’s exports.

The Minister for Commerce said that “We have to bear in mind that this trade policy comes in the backdrop of a number of challenges”.

These challenges, he said include:Infrastructure deficit, particularly in energy, Poor innovation and technological infrastructure, Low labour productivity, low levels of manufacturing value addition, little Foreign Direct Investment in manufacturing and exportable sectors, anti‑export bias in taxation, increasing costs of exports as compared to imports, lack of product and geographical diversification in exports, absence of economies of scale in the production processes, especially in the Small and Medium Enterpris sector which accounts for a vast majority of the enterprises in the country.

Minister for Commerce said that his Ministry realizes that “we need a paradigm shift to enable our firms and entrepreneurs to become globally competitive and export those products which are valued more in the international market”.

This, he said would involve structural transformation in the form of increased mobility of labor and capital across sectors and change theirproduction processes and ultimately the content of exports.

“We hope that we would be able to begin effecting this transformation through the Strategic Trade Policy Framework 2009‑12, with Competitiveness Development at the centre of all our trade promotional efforts and interventions.

Very soon, we should be able to see Pakistan producing and exporting a more sophisticated and diversified range of products, resulting also in an increase in returns for sectors ready to embrace the global competitive environment”.

The Minister said that as far as the enhancement of the export competitiveness is concerned, the government aims to: first, overcome the most pressing supply‑side constraints such

as the shortage of energy, cost of capital and difficulties linked with adverse travel advisories.

Second, he said is to enhance competitiveness of textile and clothing, with the help of Textile Policy due to be announced shortly which focuses on new investments, modernization of machinery and increasing total factor productivity.

Third, he said is to deepen and diversify export markets particularly our major trading partners US and EU as well as countries with which Pakistan has signed a free trade agreement such as China, Malaysia and Sri Lanka.

Fourth,he said is to promote trade in services which globally have a more stable demand pattern and are less prone to detrimental external shocks seen for the case of commodity trading.

Fifth,he said is to embark on domestic commerce reform and development where key areas such as wholesale and retail trade, storage and warehousing, transport, regulatory environment, promotion of modern business and taxation practices require immediate attention.

Mr. Fahim said that in order to address our strategic objective of increasing the sophistication level of Pakistan’s exports products and enhance firm level competitiveness, our government aims to:Integrate the local productive capacity with globally integrated supply chain.

Coordinate and leverage the skill up‑gradation programmes in the priority sectors and strengthen the institutions entrusted with the skilling. In this regards, skilling of women workers would be given special importance.

Acquire and upgrade technology level so that Pakistan can move away from the traditional and low value export products.

Promote enterprise and entrepreneurship development. The Ministry of Commerce proposes to set up an Enterprise and Entrepreneur Fund [EEF] for incentivising the improvements in firm management capabilities in ten sectors chosen to push Pakistan higher on the sophistication ladder.

Rationalize the tariff policy keeping in view the structure of value addition in various industries.

The Commerce Minister further said that in order to address our strategic objective of product diversification for Pakistan’s exports our government aims to:

Provide a clear policy framework on the development of chemical sector. Continue the successful initiatives provided to the Pharmaceuticals sector in the previous trade policy and help introduce necessary regulatory and initiate new development programmes.

Address the supply side constraints in the meat and meat products industry Facilitate the foreign direct investment and export potential of mineral sector.

Promote agro‑processed exports Support the light engineering sectors to export more in high paying markets. The trade policy aims to create a special fund of Rs

2.5 billion for product development and marketing in order to increase the sophistication level of the sector and realize true potential of this sector.

Devise a medium term strategy to boost exports of gems and jewellery.

Devise a comprehensive long term strategy for significantly improving Pakistan’s export of services. Provide incentives to facilitate technology acquisition, adoption, replacement with the twin objectives of energy efficiency and environmental protection To launch a comprehensive Leather and leather products export Plan in consultation with the major players of leather sector and to launch a comprehensive plan for the promotion of export of Services The Commerce Minister said that in order to address our strategic objective of pursuing greater market access through extensive trade diplomacy the government aims to:Actively participate in the Doha Development Agenda negotiations in orderto maximize the gains from trade diplomacy.

Making free trade agreements a success in terms of increase in bilateral and regional export volumes with favorable terms of trade for Pakistan.

Engage with the larger trading partners like US and EU for greater market access and utilize the Reconstruction Opportunity Zones for providing zero duty facility for exports to US and to strengthen and utilize the trade officers better for the protection and promotion of Pakistan’s commercial interest abroad.


Minister for Commerce Makhdoom Amin Fahim said that enhancing export competitiveness of Pakistan would largely depend upon the quality of governance and management structures deployed to implement it.

He said that in order to address our objective of institutional reform for prudent implementation of Strategic Trade Policy Framework the Ministry of commerce would take the following measures:

We would employ the modern logical frameworks to implement and evaluate different interventions and initiatives of the Strategic Trade Policy Framework and would establish 3 Implementation Management Units.

We would set up an Export Investment Support Fund to channelize the public investments to the selected sectors with clear objective of effecting the structural transformation.

My Ministry would ensure significant improvements in its own working as well as in the working of Transport and Trade Facilitation Project, Trade Development Authority of Pakistan, National Tariff Commission, Pakistan Institute

of Trade and Development, Pakistan Horticulture and Export Development Board, Directorate General of Trade Organizations, Trade Offices Abroad and other relevant organizations.

The Ministry of Commerce would establish efficient steering and coordination mechanisms that make the functional linkages between the Structural Trade Policy Framework with the Planning process in Pakistan and relevant line and sectoral ministries My Ministry would lead from the front in shaping muchmore effective Public‑Private dialogue in the realization of the Objectives of the Strategic Trade Policy Framework.

As far as the monitoring and evaluation of the Strategic Trade Policy Framework is concerned, the Pakistan Institute of Trade and Development Islamabad, an independent policy think tank of the Ministry of Commerce, would undertake a systematic evaluation of the impact of Trade Policy 2009‑12 on the trade performance of Pakistan with a view to enhance the effectiveness of different trade policy interventions, suggest course corrections and lay the scientific foundations for the preparatory work for the next Trade Policy.

As far as giving an export target for the coming years is concerned, the Minister said that the Ministry believes, on the basis of an extensive consultative process, that there is a consensus among all the stakeholders in Pakistan’s international trade that the country’s exports can become an engine of growth and prosperity in Pakistan, if the relevant institutions, both in public and private sector implement a holistic strategy to enhance competitiveness of exports.

However the growth during 2009‑10 would remain rather sluggish partly due to slowdown in global demand and also due to the fact that all the programmes and measures of Strategic Trade Policy Framework would have a brief time lag before coming into full force.

The Ministry therefore has set the export growth target of 6 % for 2009‑10 and 10 and 13 % for each of the successive years.

The Ministry for the first time is introducing a few intermediate indicators, which contribute to the enhancement of export competitiveness. It is expected that by 2012 the competitiveness ranking of Pakistan will improve from 101 to 75; the share of engineering exports will increase from 1.5 % to 5 %; value addition of cotton to increase from US $ 1000 to $ 1500 per bale; and regional trade to expand from 17 to 25 %.

The Strategic Trade Policy Framework, he said has sets out the policy guidelines and identifies the principle action areas.

“We hope to complete the work on identifying the business processes to improve within the first quarter of the financial year and address them forthwith. For the realization of other strategic objectives we hope to take the stock of the on ground situation and propose the activities which would start rolling out within the second quarter. We strongly hope that the activities and programs thus started would be completed by June 2012. But we have not ignored the pressing supply side issues and other legitimate requirements of the export sector and are hereby suggesting several measures to facilitate exports”, he remarked.

The Minister said that businesses need short to medium term certainty in the interest rate for investment.

Currently, there is no policy instrument provided by the government or private sector for providing finance at fixed interest rates for a short to medium term.

It has been decided to create a Fund to hedge markup rate hikes. The Ministry will work with the Ministry of Finance and State Bank of Pakistan towards this end.

He said that in order to ensure predictability of electricity supply it has been decided that Ministry of Water and Power would work with the Electricity Distribution Companies, to enter into agreements with clusters of industries whereby electricity is supplied at mutually agreed times. The agreements would have punitive and compensation clauses; and the compensation could be in the form of electricity charges credit.

The provision of insurance cover for visiting buyers can go a long way in restoring the investor’s confidence. These days, the purchasers, inspectors and sourcing agents of overseas buyers are reluctant to travel to Pakistan and the exporters ave to meet them in other countries, This increases cost of doing business. It has been learnt that apart from travel advisories that stop the purchasers/importers from coming to Pakistan but also the fact that the insurance companies refuse to cover the period of stay in Pakistan on usual rate of premium. To overcome this problem, it has been decided to launch a scheme for picking up the full cover for Pakistan for their valid insurance policies. The scheme will be funded from Export Investment Support Fund and managed by National Insurance Corporation, he remarked.
 
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ISLAMABAD, Jul 27 (APP): The federal cabinet on Monday approved the Trade Policy 2009-12, aimed at addressing issues of poverty alleviation, employment generation and development of industries.Prime Minister Yusuf Raza Gilani while chairing the cabinet meeting specially convened to discuss Strategic Trade Policy Frame Work 2009-12 and Trade Policy 2009-10, said the policies would greatly benefit the commonman.

“The trade policy is aimed at poverty alleviation, employment generation, and export-led growth to bring in greater benefits to the commonman besides focusing on development of agriculture, textile, Small and Medium Enterprisers and domestic raw materials,” the Prime Minister said.
Gilani said in the present economically challenging times, there was no other option but to succeed.

“And we will succeed with the support of Pakistani nation, that is united like never before and is firm in its resolve to make the country counted in the comity of nations,” he said.

The Cabinet reviewed the demand and supply of electricity in the country and discussed ways and means to overcome power shortage by increasing supply and adopting measures for energy conservation.

The Prime Minister said, “I understand when common people, traders and industrial workers come on roads to protest against loadshedding. I share their concern and my sympathies are with them.”

However, he said that protesters should realize that the crisis was inherited by the government.

He said addressing the power crisis was the government’s top priority and was part of his government’s first 100 days.

“Progress has been made as implementation of new IPPs and Rental Power Plants is on the track,” he said.

Gilani said a committee of ministers had been constituted to monitor the situation on daily basis.

With improvements in oil and gas supplies and coming into system of power from Mangla this week, the situation has started improving, he added.

He directed the relevant ministries to work on keeping the existing power generation capacity running. He directed the Ministry of Water and Power to ensure commissioning of new IPPs and Rental Power Projects as per schedule.

The Prime Minister appealed to the nation to bear the situation and assured that people would see visible improvement in power supply situation and the deficit would be bridged.

The meeting congratulated the Ministry of Environment for setting up a world record by planting over 500,000 saplings in a single day which has been duly recorded in the Guinness Book of World Records.

The Cabinet formed a committee to consider the resolution passed by the Senate regarding restoration of the Haj quota for the Senators. The committee headed by the Minister for Religious Affairs comprises Leader of House in Senate, Chief Whip in the National Assembly and Minister for Parliamentary Affairs.

On the issue of displaced persons, the Prime Minister said the government was keenly working on their safe return and rehabilitation.

“It is a matter of great satisfaction that military operation in Swat and FATA is successfully meeting its desired objectives and peace is gradually returning to these areas,” he said.

The Prime Minister said financial assistance to IDPs was being made in a transparent manner and the phased return of IDPs had gradually picked up the momentum.

He hoped that full return of IDPs would be completed in about a month’s time in an orderly and peaceful manner.

He extended his appreciation to all political parties, federal and provincial agencies and non-government organizations including the UN agencies for their support and extraordinary work for the IDPs.

The Prime Minister reiterated that fight against terrorism would continue till complete elimination of the militants and return of peace and stability in the affected areas.
 

ISLAMABAD, Jul 27 (APP): Minister for Information and Broadcasting Qamar Zaman Kaira said on Monday that the government plans to increase budgetary allocations for education in the next financial year up to 10 per cent of the Gross Domestic Product. While speaking with media persons at a “A Level High Achievers Ceremony at Beaconhouse School System,Banigala,he said that in the present budget the present government has doubled the funds for education sector.”History shows that only those nations have progressed which attached top priority to education of their youth”,said the minister.He said that despite several challenges being faced by the country,the government was committed to increase the funds for education sector manifolds.

To a question about General Pervez Musharraf’s recent statement, he said that Pakistan Peoples Party has deal with the masses of the country and not with any dictator.”Had Shaheed Mohtarma Benazir Bhutto struck any deal with Musharraf,she would not have been martyred.She had commitment with democracy,and was fully aware about dangers to her life but she returned home and sacrificed her life for this country,”he added.

Kaira said that the process of return of Internally Displaced Persons (IDPs),in Swat and adjoining areas was going on smoothly and hoped that the process would be completed within one month.

Qamar Zaman Kaira said that the issue of rental power projects was being politicized although this was the only option to overcome power crisis on war footing.

He said that the present government has no Aladdin’s lamp,and cannot resolve the issue overnight.However,he said that several projects were near completion and the menace of load‑shedding would be eliminated by December.

The minister said that the government had planned to start work on several hydel projects,which would produce cheapest electricity.

To a question about Kalabagh dam,he said that as there was lack of consensus on this project there was no point in launching this project.

Earlier while addressing the ceremony he said that Pakistan was envisioned to be a welfare state but unfortunately,it was converted into a security state which left very bad impact on the social sector.”Social sectors like health nd education were neglected as Pakistan had to spend more on defence”,he added.

He said that provision of education was responsibility of the government,but the some private chains were rendering great service in this filed.
 
UBL completes fifty years

KARACHI: To mark the United Bank Limited’s successful golden jubilee, it has produced an exclusive audio CD comprising songs and narratives, based on the selected works of Pakistan’s revered, national poet-philosopher, Dr Mohammad Iqbal. Incorporated on July 27, 1959, UBL started operations in November that year. UBL’s operations now extend to 11 countries outside Pakistan, through 17 branches, representative offices, subsidiaries and joint ventures apart from over 1100 domestic branches within Pakistan. staff report

Daily Times - Leading News Resource of Pakistan
 

By Ijaz Kakakhel

ISLAMABAD: To overcome electricity crises on emergency basis, the government plans to generate 1,988 megawatts (MW) by December 2009 through rental power plants, sources said.

Federal Minister for Water and Power Raja Pervez Ashraf on Monday informed the Cabinet Committee on Power Crisis in a presentation that 11 projects of rental power plants would be completed by the end of this year. Through completion of these projects, the government would be able to add 1,988MW power to the system.

The rental power plants are Sumandari Rd, Faisalabad, which will generate 150MW and it would be completed by August 2009. Oil will be used as fuel for the project. Guddu with a generation capacity 110MW (gas-based) would be completed by September 2009. Satiana Road, Faisalabad having power generation capacity 200MW would be completed by November 2009 and it would use oil as fuel.

Karkey, Karachi with power generation capacity of 232MW would be completed by November this year and it would also use oil as fuel. Sahuwal, Sialkot having power generation capacity 150MW and it will use oil as fuel would be completed by December 2009, Piranghaib, Mulatan having power generation capacity 192MW would use oil as fuel and would also be completed by December this year. The oil-based Ludewala, Sargodha having power generation capacity 200MW would be completed by end of this year, sources maintained. Asharf further informed the cabinet meeting that Gulf, Eminabad, Gujranwala rental power project having 127MW would be completed by end of this year. Independent, Gojra, having power generation capacity of 221MW and using oil as fuel would also be completed by December this year. The Reshma, Raiwind, Lahore rental power project having power generation capacity of 201MW would be completed by end of this year and the last one Walters, Karachi having power generation capacity of 205MW would also be completed by December 2009.

Overall, these 11 rental power projects would be completed by end of this year and it would generate a total of 1,988MW power that would be added to the national grid station, which would greatly help the government in its promise to remove load shedding completely by end of this year, the minister informed the meeting.

He also informed that minimum efficiency requirements are 30 percent on oil and 33 percent on gas, while minimum annual availability requirements are 85 percent on oil and 92 percent on gas. Sources further informed that the minister explained to the meeting about reasons for tariff variation and said projects were located at different sites as per system requirements. Projects have different fuel consumption and different fuels and variations in project costs due to difference in technology and age of the machinery.

Explaining the schedule of all power generation projects (rental and IPPs) by end of this year, the minister in its presentation explained that a total of 3,106MW would be added to the system.

On demand side, the minister said the government also planned and carried out several measures to curtail the demand for electricity. These measures included public awareness campaign through media, introduction of day light saving time, staggering of industrial holidays, interaction with industries for reduction of load during peak hours especially that of steel furnaces.

The minister expressed the hope that the country would be able to get rid of load shedding permanently by end of this year and also take appropriate measures to meet the power demand by 2015 and 2025.
 

ISLAMABAD: The power generation units of the country would remain under-pressure till September 15, 2009, Federal Minister for Water and Power, Raja Pervez Ashraf said. He, however, reiterated his stance that in August 600MW additional electricity would be injected in the system, which would provide relief to the consumers. The minister expressed these views during a chat with journalists after meeting of the Cabinet Committee on Energy Crisis (CCEC) held today under his chairmanship. He also claimed that there would be no unannounced or forced load shedding and the chief executive of the distribution company would be responsible of unannounced load shedding in their respective jurisdiction. However, in case of any fault in the distribution system, the chief executive would inform the chambers of commerce and the civil society and took them into confidence for emergency load management in the particular area, the minister maintained. Due to climate changes, the weather had become hotter and the short fall had risen to 3500MW. The use of 6.8 million new electric appliances had burdened the already loaded system resulting in an increase in the shortfall. He said the power situation was improving gradually and the government would fulfill its commitment with the nation to end menace of load shedding by December 31, 2009. The homework in this regard had been completed and the new projects would generate power as per schedule under a road map prepared by the ministry to overcome the crisis. He said all the power generation units operating on capacity. To a question, he said that all the units of Mangla power house were in working condition but due to low water releases as per indent for irrigation, the government is not able to actualize its potential. When the water releases improve from the dam, it would also increase the hydel power from Mangla, however, Tarbela was generating maximum power due to high water releases. staff report
 

Staff Report

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) while addressing misconception in general public regarding real estate sector informed that the Companies Ordinance, 1984 deals with the incorporation of companies and there was no legal restriction on real estate companies being incorporated under the ordinance, as real estate was a lawful business.

A press release issued here on Monday revealed that the SECP could not regulate the real estate sector. Under the Constitution of Pakistan, this sector falls within the ambit of the provinces and not federal level institutions like the SECP.

Most of the real estate development projects in the country were being carried out by societies, trusts, authorities and such other vehicles, which in any case could not fall within the jurisdiction of the SECP.

Advances received by companies as pre-payment for tangible assets agreed to be delivered at a future date could not fall in the definition of deposit. However, currently real estate development companies, which could not possess the lands were required to get approval from the SECP for inviting advances through media advertisements. In this respect whatever limited role the SECP has, it was pursuing it diligently. The SECP's role came to an end after approval of advertisements.

Any disputes between the developer and a customer being contractual obligations between parties, also could not fall within the jurisdiction of the SECP and falls within the jurisdiction of the courts of law.

Despite this, the SECP had time and again launched public service campaigns against unscrupulous elements to bring into the knowledge of the general public, the fraudulent activities of such elements by publishing advertisements in print media.
 

By Saad Khan

KARACHI: The Trade Policy 2009-12, set in a three-year Strategic Trade Policy Framework (STPF), would result in the enhancement of export competitiveness of Pakistan enabling Pakistani companies overcome the shocks of international economic crisis through a set of integrated and holistic policy and measures.

Federal Minister for Commerce, Amin Fahim, in his trade policy speech outlined the fundamental principles of the STPF, which are rooted in growth with equity, greater opportunities for gainful employment and sound macro-economic framework for trade environment. The STPF will be a medium-term road map in order to ensure certainty of policies, which in turn will act as a catalyst in the revival of domestic commerce and international trade in Pakistan, with the precise objective of bringing about a structural transformation in exports.

This trade policy comes in the backdrop of a number of challenges. These include, infrastructure deficit, particularly in energy, poor innovation and technological infrastructure, low labour productivity, low levels of manufacturing value addition, little foreign direct investment in manufacturing and exportable sectors, anti-export bias in taxation, increasing costs of exports as compared to imports, lack of product and geographical diversification in exports, absence of economies of scale in the production processes.

There is a need of a paradigm shift enabling the firms and entrepreneurs to become globally competitive. This would involve structural transformation in the form of increased mobility of labor and capital across sectors and change their production processes and ultimately the content of exports.

The government aims to begin effecting this transformation through the STPF, with competitiveness development at the centre of all trade promotional efforts and interventions. As far as the enhancement of the export competitiveness is concerned, the government aims to overcome the most pressing supply-side constraints such as the shortage of energy. The announcement of travel advisories by some foreign governments has had a negative impact on the visit of the foreign buyers. The policy aims to counter this negative impression of the country through the active support of the commercial councilors.

The policy also envisions enhancing the competitiveness of textile and clothing, with the help of textile policy due to be announced shortly which focuses on new investments, modernisation of machinery and increasing total factor productivity. The policy also aims to deepen and diversify export markets particularly with the major trading partners US and EU as well as countries with which Pakistan has signed free trade agreements such as China, Malaysia and Sri Lanka. The trade in services is on the boom as businesses are finding cheap labour enclaves in a world fraught with competition and cost cutting. One of the cornerstones of this policy is to promote trade in services, which globally have a more stable demand pattern and are less prone to detrimental external shocks seen for the case of commodity trading. The Ministry of Commerce proposes to set up an Enterprise and Entrepreneur Fund (EEF) for incentivising the improvements in firm management capabilities in ten sectors chosen to push Pakistan higher on the sophistication ladder.
 

ISLAMABAD: First ever textile policy, which would be announced shortly, will focus on enhancing domestic capabilities for efficient use of resources through skills development, technology up-gradation and provision of infrastructure facilities. Federal Minister for Commerce, Makhdoom Amin Fahim, during his trade policy speech said that the government of Pakistan recognises the importance of the textile and clothing sectors. To provide a foundation for sustainable growth, various initiatives are being planned through a separate and first ever Textile Policy, to be announced shortly. The textile policy takes a holistic approach and will contain short- and long-term measures to support the textiles and clothing manufacturers overcome the current problems created by the global down turn and equip them with necessary ingredients to meet the growing competitiveness and challenges of the future. The strategic trade policy framework would leverage the Textile Policy through its diverse measures and policies directly and indirectly. The Ministry of Commerce would lend its support to the Ministry of Textiles towards an efficient implementation of Textile Policy. In this regards, the measures to promote new investment and modernisation of machinery; diversification of exports mix; to encourage the establishment of domestic and international brand; Rationalization of tariff on the principle of cascading to provide the exporting industry with an environment which supports manufacturing rather than trading would be taken. Initiatives for greater market access, developing and enlarging acceptability of Pakistani textiles and clothing in niche markets and diversification of exports to new destinations will also remain a key focus. sajid chaudhry
 


ISLAMABAD: Pakistan is gripped by poverty crisis, which has already driven people to acts of desperation and increasing food production alone will not ensure food security unless the destitute have enough income to buy the food they need, former minister, Sartaj Aziz, said this while delivering a lecture on "Food Security for the Poor" organised by Pakistan Poverty Alleviation Fund (PPAF).
Aziz said an average agricultural growth rate of at least 4 percent per annum in the next decade - 2010-2020, implementation of a pro-poor growth strategy and provision of non-farm employment on a substantial scale is mandatory to achieve food security in the country.
In Pakistan, he said, the level of poverty had declined from 34.4 percent of the population in 2001 to 28 percent in 2005-06, but the high food inflation in the last three years increased this ratio to 33 percent once again, pushing at least 11 million people below the poverty line. According to the recent study conducted by Beaconhouse National University Institute of Public Policy, if no policy action is taken in the current trend then an additional 22 million people would be impoverished over the next four years.
Aziz said building a transparent and well-managed system of safety nets to provide income support to very poor households and evolving an efficient and equitable system of food procurement, storage and distribution were also a must for the food security to the poor. He said that Pakistan has so far not evolved a comprehensive national food security strategy. He said it was indeed unfortunate that during the last few years the level of food security of the people of Pakistan has fallen. As an example, he said, the level of wheat production in 2007-08 was the same as that attained almost a decade ago while the population has increased by almost 20 percent.
Former finance minister said that food security has, in fact, been low since 2001-02, which was a consequence to low food production levels and relatively higher inflation in food prices. Given the underlying conditions of food security, he said, it was difficult to visualize simultaneously the reported fall in incidence of poverty, particularly in the face of declining food affordability.
He said the task ahead of restoring food security is indeed a challenging one. But with a democratically elected government in place there was already evidence of a return of the policy focus towards agriculture. Better prices (especially of wheat) were being offered to growers, taxes on agricultural inputs have been withdrawn, a large subsidy had been given on phosphate fertilizer and more public investment is being diverted towards rural infrastructure. He said a good start had been made but more needed to be done in terms of improving the functioning of agricultural markets, maintaining reserve stocks promoting agricultural research and extension and increasing investment in the water sector. Simultaneously, he said, plans for cash transfers to the poor as food support need to be implemented quickly.
He said efforts to increase rural population's access to land and livestock and to enhance basic education opportunities are critical to increasing the level of agricultural output, improving nutrition, and the alleviation of poverty. According to the World Food Programme Survey for the Vulnerability Analysis and Mapping Unit, as many as 77 million people up to March 2008 are deemed "food insecure", where the food insecure population is defined as those consuming less than 2350 calories per person per day. staff report
 
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