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Economy gradually picking up on sound footing
SLAMABAD (September 18 2009): Despite huge challenges of energy crisis, continuing war against terrorism, domestic security and overall impact of global economic recession, economy of Pakistan has been gradually picking up on sound footing, economic indicators suggest. Economy during the current financial year has marked significant advancement in different sectors, hence steadily moving towards sustainability, notwithstanding the current domestic as well as global challenges.

The inflation eased to a 20-month low in August 2009 as it dropped to 10.69 percent after edging up 11.2 percent in July 2009. The downward trend in inflation had started since October 2008, after touching an all-time high of over 25 percent and the government projected single digit inflation by the end of year.

In terms of trade, the deficit has narrowed almost by 39 percent during the first two months of financial year 2009-10 as against the same period of the last financial year. Trade deficit during July-August (2009-10) was recorded at 2.194 billion dollar as against the deficit of 3.564 billion dollar recorded during July-August (2008-09), according to Federal Bureau of Statistics.
Business Recorder [Pakistan's First Financial Daily]
 
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CDWP approves 42 projects worth Rs 107.2 billion

ISLAMABAD (September 18 2009): The Central Development Working Party (CDWP) of the Planning Commission on Thursday approved and recommended 42 projects of different sectors, costing Rs 107.2 billion with foreign exchange component of Rs 10 billion. The CDWP authorised the Water and Power Development Authority (Wapda) to undertake feasibility study of Pattan hydro power project that would have the capacity to generate 2800 MW electricity.

Deputy Chairman of the Planning Commission Sardar Aseff Ahmad Ali chaired the CDWP meeting that was attended by the sponsoring agencies and the representative of provincial governments and Special Areas. The CDWP recommended Swat development package to the ECNEC for approval, costing rupees four billion. Of the total approved projects, 27 belong to infrastructure sector, costing Rs 49.3 billion and 13 to social sector, costing Rs 57.6 billion.
Business Recorder [Pakistan's First Financial Daily]
 
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LAHORE - Pakistan Electric Power Company (PEPCO) and Harbin Power Engineering (HPE), China signed a significant project titled “747 MW Combined Cycle Project” located at Guddu Power Company under the Central Power Generation Company Limited (GENCO II) at Wapda House here on Saturday.
MD PEPCO Tahir Basharat Cheema, while signing the above project said that this project is part of PEPCO‘s long term initiative to provide reliable and cost-effective power to the people of Pakistan. He added that PEPCO has been able to successfully negotiate and finalise the deal at competitive market prices with highest efficiency of all installed and under construction projects in Pakistan with net efficiency of 54.5pc. Besides, he also stated that this project will replace the existing underrated units 1,2,3 and 4 at Guddu which at present are only providing 250 MW or so while using the same quantity of fuel, would also provide affordable base load generation for the country.

PEPCO also informed that HPE china is a leading Engineering company having considerable experience in power plants. Harbin also has wide experience in Pakistan and had been involved in projects at Guddu, Faisalabad, Kotri , Jamshoro, Muzafargarh and Malakand.

They will use the gas turbines from General Electric USA, which is the world’s largest gas turbine supplier with extensive experience both internationally and Pakistan as well. The gas turbine contemplated for the project is Frame size 9-FA, which is amongst the most effective and best in the world. These gas turbines utilise the latest metallurgical advances and coatings to produce one of the highest possible efficiencies.

The project was signed by Guo-Yu President Harbin Power Engineering and Tahir Basharat, who later informed that by shutting down inefficient and outlived Guddu units and utilising gas, a new combine cycle will provide tremendous saving due to almost double electricity production, with improved availability parameters. Consequently, this project is also part of PEPCO strategy to exit RPPs, which will ultimately result and help in phasing out theses RPPs.
 
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ISLAMABAD (APP) - The Asian Development Bank (ADB) is extending $780 million to Pakistan through a multitranche financing facility for priority energy efficiency projects that will secure the country’s growing energy needs and reduce its reliance on costly, polluting fossil fuels.

Accordign to ADB press release received here, the $1.18 billion Energy Efficiency Investment Program underpins Pakistan’s first-ever initiative to make both the pursuit of energy security and low-carbon growth a single strategic priority. The 10-year program puts energy efficiency and the adoption of clean technologies at the heart of government planning and public investments, it added.

The Multitranche Financing Facility will finance short to medium-term energy efficiency projects, including the replacement of incandescent light bulbs with more efficient and cost-effective compact fluorescent lamps.
The facility, which will release funds in tranches, will provide a portion of the government’s 10-year energy efficiency investment plan, estimated at $3.8 billion.

Targeted energy savings under the program will reduce the country’s energy intensity, while cutting greenhouse gas emissions by an estimated 30 percent. The overall gains in annual savings by fiscal year 2019 are expected to be around $4 billion and would provide major social benefits, such as increased household incomes, jobs, and reduced poverty levels.

The program will help the government reduce public expenditures and subsidies, easing the debt problem in the power sector which has weighed on attempts at improvements in the past.

It also removes financial barriers to investment in clean energy technology, opening the way for increased private sector involvement with ADB, and other development partners, helping to leverage commercial financing support.
Projects in the program are expected to be eligible for earning carbon revenues under the Clean Development Mechanism of the Kyoto Protocol.
Through the facility, ADB will extend $760 million in loans from its ordinary capital resources in tranches.

It will provide a further $20 million from its concessional Asian Development Fund. Co-financing equivalent to Euro 150 million will be provided by Agence Franaise de Dveloppement, with the government financing $200 million equivalent.
 
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FAISALABAD (APP) - Federal Minister for Textile Industry, Rana Farooq Saeed Khan has said that government is fully aware of economic potential of textile sector and President Asif Ali Zardari during his recent visit to UK has stressed on market access for Pakistani textile products to European countries.
He was addressing a public gathering in his home town Sammundri near here Wednesday.

He appreciated the political maturity and vision of President Asif Ali Zardari and said that he has made it clear to the British Officials that war on terror has inflicted a colossal loss to the Pakistani economy but in spite of this fact Pakistan being a responsible member of the international community emphasized for trade instead of aid.

Rana Farooq Saeed Khan said that textile sector is the backbone of national economy as it was contributing 60 per cent towards foreign exchange earnings in addition to offering 40 per cent jobs to the work force.

He said that in spite of role of a frontline country in the war against terrorism America and European Union are extending extra ordinary concessions to Bangladesh and other countries which has inflicted direct blow to the Pakistani exports. He said that these discriminatory policies coupled with global melt down has plunged textile sector in to deep crisis.

However, he said that PPP government has a privilege to announce a consensus, viable and most dynamic 5-year textile policy with main emphasis on enhancing production and export of value added textile products. He said that revival of textile sector would also create new job opportunities for the male as well as female work force in addition to enhancing our exports.

He said that President Asif Ali Zardari as well as Prime Minister Syed Yusuf Raza Gilani is striving hard to get the facility of direct access for Pakistani textile products. “I am optimistic that as a result of recent visit of President to UK and America he would be able to convince those countries to give direct access to the Pakistani products” he said and added that this would be a big achievement of this government which would not only stabilize textile sector but also pave way to further strengthen the national economy.
 
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NEW YORK (APP) - Former President Bill Clinton promised to help Pakistan in securing much-needed foreign investments that would create opportunities for the country’s economic growth and well-being of its people.

The former US president, who heads the Clinton Global Initiative (CGI), told President Asif Ali Zardari at a meeting with the Pakistani leader that his organization would work with Pakistan’s private and public sectors in furthering those objectives. In this regard, Clinton said he would soon visit Pakistan, according to Spokesman of the president and former Senator, Farhatullah Babar.

President Zardari, who arrived in New York on Sunday night, has a packed schedule of engagements during his stay in New York. He got down to work soon after his arrival.

The CGI works with the private sector, non-governmental organizations and global leaders to effectively confront the world’s most pressing problems. Briefing newsmen on the Clinton-Zardari meeting, Spokesman Babar said that former president Clinton expressed appreciation for the achievments made by Pakistan under the leadership of President Zardari and wished him continued success.

He said that President Zardari was especially keen on meeting Clinton since this year’s action areas of CGI were of interest to Pakistan, including strengthening of infrastructure, building of human capital and women’s emancipation.

President Zardari urged Clinton to launch projects for small- and medium-sized dams to help Pakistan meet its pressing water and energy needs. Thirteen dam sites have been identified— five in Balochiatan, four in Sindh and two each in Punjab and NWFP. The president said the CGI should look at the prospects of private/public enterprise to undertake these crucial projects for Pakistan. In addition, President Zardari proposed that CGI should consider awarding scholarships to 10 brilliant Pakistani students for studies in U.S educational institutions.

In the context of building infrastructure, President Zardari told former US president that he welcomed the US for setting up an energy task force and looked forward to energy dialogue during the Secretary of State Hillary Clinton’s visit to Pakistan next month. During the meeting which lasted over forty minutes, the spokesman said that the two leaders also discussed issue of militancy, Pak-US relations, Indo-Pak ties and the situation in the region. Clinton appreciated the progress made by Pakistan during the last one year, especially regarding fight against militancy and rehabilitation of displaced persons from the Swat region.

In the context of Indo-Pak relations, President Zardari said he believed that dialogue and resumption of the composite dialogue were in the best interest of the region, the spokesman added. Pakistan, he said was determined not to allow its territory to be used against any other country.

Expressing concern over Drone attacks, he said Pakistan should be provided with the Drone technology so that it could itself combat the militants instead of its use by others. In the context of US-Pak economic relations, the President said steps should be taken to provide market access to Pakistani products in the US as well as the EU countries. Present at the meeting were Foreign Minister Shah Mamood Qureshi, Chairman Foreign Relations Committee of the National Assembly, Asfandyar Wali, Secretary General Salman Farooqi and former Senator Farhatullah Babar.
 
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LAHORE, Sept 23 (APP): The elected body of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Wednesday urged US President Barack Obama for direct free market access and not aid or grant as Pakistan suffered tremendous irreparable loss of one and half trillion dollars since 9/11.

FPCCI chief, Sultan Ahmad Chawla, all federation VPs Mian Adress, Hameed Akhtar Chadda, Mansha Churra, Aftab Barlas, Daru khan, Zakaria Usman and founder chairman Pak-US Business Council and former federation chief, Iftikhar Ali Malik and several other top private sector business leaders in a joint statement called upon Obama to provide direct free market access in the US to our traditional and non traditional products on the terms and condition applicable to Least Developed Countries (LDCs) as Pakistan had faced huge losses in terms of billions of dollar expenditures in the war against terror, absence of foreign investment, sharp decline in export, inordinate delay in development projects, destruction of millions of houses in Swat, NWPF, tribal areas and loss of hundreds of human lives in war against terror in the region besides camping of millions of Afghan refugees in addition to millions of internally displaced people.

Sultan Ahmad said that “In principal we badly needed market access in US and other European countries and not aid or grant at all to counter balance our losses in the aftermath of 9/11 debacle and war against terror. He said that market access will definitely help rebuild our bleak national economy.

Founder Chairman Pak-US Business Council Iftikhar Ali Malik said to effectively counter terror with better results, durable peace is pre-requisite in Swat, NWPF and tribal areas coupled with better economic condition. He said on certain occasions, US administration promised to develop Reconstruction Opportunity Zones (ROZ) to help alleviate poverty and unemployment especially in the trouble hit areas of Pakistan, which, he observed , not even after the lapse of several years has materialised.

He said US program of ROZ must be implemented instantly and ensure cent per cent buy back as 550 textile weaving, spinning, textile make-up and garments units with full infrastructure needs immediately rehabilitation and direct US market for stabilizing the national economy on war footings.

USA also must transfer technology to develop agro based industry because Pakistan has emerged as the 4th largest milk producer in the world as we have abundant milk and livestock.

He said nearly over 20% of our agricultural products are consumed by our Muslim brother country Afghanistan which causes food shortage in Pakistan.

Iftikhar Ali Malik emphasised the urgent need for assisting Pakistan to overcome its economic crisis by restoring quota system at par with all other under developing countries besides market access on zero rate duty.

Iftikhar Ali Malik said that Pak economy has been suffering a net loss of $ 7 billion annually.
 
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US Congress ratifies KL aid bill for Pak
Updated at: 0103 PST, Thursday, October 01, 2009


WASHINGTON; Sami Ibrahim: The US Congress Wednesday gave the final go-ahead to triple aid to Pakistan to 1.5 billion dollars a year through 2014, hoping to encourage stability to assist the fight against Islamic extremism.

Despite misgivings by some lawmakers, the House of Representatives approved the bill by a voice vote after the Senate unanimously approved it last week.

The bill now needs only the signature of President Barack Obama, who has enthusiastically supported the aid package as part of his administration's campaign to root out Islamic extremism from Pakistan and Afghanistan.

The U.S. House of Representative passed a $ 7.5 billion Pakistan aid bill Wednesday, a week after the Senate approved the same measure to bolster development for 170 million Pakistanis, grappling with economic and terrorism challenges in a region that has seen high-stakes American engagement since 2001.

The voice vote in the House marked Congressional appoval of the long-awaited compromise legislation named "The Enhanced Partnership with Pakistan Act of 2009," and more commonly known as Kerry-Lugar Bill.

The legislation now goes to the White House for President Barack Obama's signature on authorizing $ 1.5 billion annually from 2010 to 2014.

The Pakistani diplomats and officials welcomed the Congressional approval of the bill and saw the measure the compromise version as a vastly improved and less restrictive version.

Islamabad's ambassador in Washington Husain Haqqani said the bill signifies Washington's long-term commitment to his South Asian nation, the U.S. abandoned and sanctioned after Soviet pullout from neighboring Afghanistan in 1989.

The measure triples U.S. democratic, economic, and social development assistance to Pakistan with a particular focus on strengthening democratic institutions, promoting economic development, and improving Pakistan's public education system. The measure also acknowledges Pakistan's pivotal anti-terror efforts on the Afghan border.

The legislation was intrduced in the House on September 24, when the Senate passed the measure and President Obama co-chaired Friends of Democratic Pakistan summit with President Asif Ali Zardari in New York, to declare commitment to the security and development of Pakistan, considered key to succcess against militants in neighboring Afghanistan, where the Taliban insurgency has been expanding.

According to the House Foreign Affairs Committee, the measure also authorizes military assistance to help Pakistan disrupt and defeat al Qaeda and relevant insurgent elements, and requires that such assistance be focused principally on helping Pakistan with its critical counterinsurgency and counterterrorism efforts.

Congressman Howard L. Berman, chairman of the House Foreign Affairs Committee, introduced the compromise legislation.

Pakistan has lost more than $ 35 billion in economic activity to the fight against al-Qaeda and Taliban militants in its northwestern areas since September 11, 2001 and more Pakistani soldiers and security personnel have laid down their lives than the combined losses the United States and its allied operating in Afghanistan have suffered.

Richard Holbrooke, the Obama Administration's special representative for Pakistan and Afghanistan hailed the legislation as an important milestone as he acknowledged Pakistan's critical importance in the region.

Howard Berman, earlier, praised the merits of the "bicameral, bipartisan legislation."

"I rise in strong support of the bill... we need to forge strategic partnership with Pakistan in a volatile region --- this bill will be in our national security interest," he said in his opening remarks.

Taking part in the debate, Republican Representative Ileana Ros-Lehtinen, Ranking member of the Committee, voiced her party's strong support for the bill, sayint it will ultimately help support the American mission in Afghanistan.

She said the Pentagon has indicated that its concerns have been addressed with regard to undue constraint earlier propsed on security assistance for Pakistan.

To support Pakistan's paramount national security needs to fight the ongoing counterinsurgency and improve its border security and control etc., the bill authorizes funds for the Foreign Military Financing (FMF) and International Military Education Training (IMET) for 5 years.

It authorizes the Secretary of State to establish an exchange programme between military and civilian personnel of Pakistan and NATO member countries.

However, the Secretary of State must certify that Pakistan continues to cooperate with the United States to dismantle supplier network relating to the acquisition of nuclear weapons related material, such as providing relevant information from or direct access to Pakistani nationals associated with such networks.

The Secretary has also to certify that Pakistan is making significant efforts to prevent al-Qaeda and associated terrorist groups, including Lashkar-e-Taiba and Jaish-e-Mohammad from using its territory to launch attacks against United States or coalition forces in Afghanistan or cross border attacks into neighbouring countries.

The Secretary is also required to certify that the security forces of Pakistan are not materially or substantially subverting the political or judicial processes of Pakistan.

However, the Pakistani officials point out that all these conditions are in line with Pakistan's declared national policy on these issues as Islamabad is against nuclear proliferation, is committed not to allow its territory to be used for terrorism and wants to progress on path to democracy.

A salient feature of the bill is the waiver provided in the legislation.

Significantly, the bill allows a waiver against these restrictions if the Secretary of State, under the direction of the President, determines that doing so is important for the US national security interests.

Neither the PCCF nor the CSF come under the purview of Kerry-Lugar Bill and are, therefore, not subject to conditions imposed on the security assistance.
Besides, none of the above mentioned conditions can set in motion automatic sanctions.

Some Congressmen including Republican Dana Rohrabacher expressed their reservations on extending massive economic and security assistance to Pakistan while others including Demcoratic Gary Ackerman called for proper usage of the assistance.

Republican Representative from Texas Ron Paul, sustained aid for Pakistan is not in the U.S. interests as American itself is facing economic problems. At the same time, also opposed U.S. bombing in tribal areas, saying it is antagonizing the Pakistanis against the United States.

Representative Sheila Jackson Lee, co-chair of the Pakistani Congressional Caucus, paid tribute to the resilience of the Pakistani people, saying they want democracy and that Washington must support them. She also commended the Pakistani military's anti-terror efforts and noted they have lost hundreds of security personnel in the struggle against militants.

Chris Van Hollen, the Karachi-born Democratic from Maryland, the U.S. should learn from its past mistakes and underscored that maintaining close ties with Pakistan is extremely important to American security interests.

He regretted that the Reconstruction Opportunity Zones initiative, he sponsored, could not find a place in the compromise version.

US Congress ratifies KL aid bill for Pak - GEO.tv
 
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Pakistan’s Trade Gap Narrows 55.9% in September as Imports Fall


By Farhan Sharif

Oct. 10 (Bloomberg) -- Pakistan’s trade deficit narrowed by 55.9 percent in September as imports fell faster than exports.

The trade gap narrowed to $897.9 million in the third month of the fiscal year, from $2.03 billion a year ago, according to data posted on the Web site of the Federal Bureau of Statistics in Islamabad.

Overseas sales fell 14.2 percent to $1.52 billion, while imports fell 36.4 percent to $2.42 billion, according to the data.

Pakistan is seeking to boost exports to sustain growth in a country where the World Bank estimates two-thirds of the population of 160 million people survive on less than $2 a day.

Pakistan’s trade deficit narrowed 18.5 percent to $17 billion in the fiscal year ended June 30, from $20.7 billion in the previous 12 months, according to the statistics agency. Exports fell 6.7 percent to $17.8 billion and imports dropped 12.9 percent to $34.8 billion.


Pakistan’s Trade Gap Narrows 55.9% in September as Imports Fall
 
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Remittances up over 22pc to record $806.12m


KARACHI - Pakistani workers remitted a record amount of $806.12 million in September, as against $660.35 million in the same month of the last fiscal year (September 2008), showing a jump of $145.77 million or 22.07 per cent.
The amount of $806.12m includes $0.08m received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).
This is the third consecutive record amount remitted in a single month during the current 2009-10 fiscal year (FY10). The previous highest amount remitted in a single month by Pakistani workers was recorded in August, 2009, when an amount of $780.53m was received in the country.
During the first quarter (July-Sept) of FY10, an amount of $2.332b was sent home by overseas Pakistanis, showing an impressive 24 percent rise when compared with $1.880b received in the same period last year. The amount of $2.332b includes $0.74m received through encashment and profit earned on FEBCs and FCBCs. The monthly average of remittances in the first quarter of FY10 remained at $777.17m, up 24 percent from $626.62m in the same quarter last year.
The inflow of remittances in the July& September, 2009 period from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $504.01m, $498.76m, $430.75m, $323.87m, $235.08m and $78.27m respectively as compared to $312.18m, $499.65m, $398.02m, $315.37m, $118.57m and $51.78m respectively, in the July& September, 2008 period. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries in the first quarter of FY10 amounted to $260.02m as against $184.18m in the same period last year.
The inflow of remittances into Pakistan from almost all countries of the world increased last month as compared to September, 2008. According to the break up, remittances from USA, UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $181.82 million, $179.84 million, $134.31 million, $112.39 million, $86.59m and $26.15 million, respectively as compared to the corresponding receipts from the respective countries during September 2008, i.e. $179.81m, $110.73m, $133.38m, $108.67m, $43.75m and $19.08m. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during September, 2009 amounted to $84.94m as compared to $64.88m during September, 2008.


Remittances up over 22pc to record $806.12m
 
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Karachi: Sindh Chief Minister (CM) Syed Qaim Ali Shah, on Saturday presided over a high level meeting at the Chief Minister’s House about the affairs of Korangi Fish Harbour Authority (KFHA).

The meeting was attended among others by Federal Minister for Livestock and Dairy Development Mir Himanyun Aziz Kurd, Provincial Fisheries Minister Zahid Bhurgri, Provincial Secretary Fisheries Laeeq Memon, Managing Director Korangi Fisheries Harbour Authority SM Tariq, Secretary Livestock and Dairy Development Mohammad Ali Afridi, Iftikhar Ali Khan and Special Secretary to Chief Minister Sindh Abdul Kabeer Qazi.

The CM said that Pakistan’s seawaters were very rich and full of food species including fish and prawn. He said that fisheries sector was a big source of earning foreign exchange. The CM stressed the need to adopt modern ways to export fish and other food items.

Shah said that the public-private participation in fish harbour would be encouraged, while proper security for harbour would be made.

He said that small boat owners should also be allowed to carry out fishing in allocated seawaters so that they could earn the livelihood for their children. Shah said that the City District Government Karachi (CDGK) would provide necessary civic facilities at the harbour.

Earlier, KFHA Managing Director SM Tariq while briefing about the harbour said that the authority was established in 1982 and its affairs were given under the control of Livestock and Fisheries Department.
 
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PESHAWAR: Pakistan Railways on Wednesday said a cargo train would shortly be operated from the Peshawar dry port which would meet a longstanding demand of the business community.

Additional General Manager Pakistan Railways (Operation), Junaid Qureshi, announced this during a meeting with a delegation of the Sarhad Chamber of Commerce and Industry (SCCI) here.

The SCCI delegation, led by its Vice-President Faiz Muhammad Faizy, informed railway officials of the difficulties being faced by the traders and businessmen in the province due to the absence of facilities at the Peshawar dry port.

They also raised the issue of shortage of wagons under the Afghan Transit Trade (ATT), transit time, construction of a dry port equipped with all state-of-the-art facilities at Azakhel and running of cargo and non-passenger trains from Peshawar to Karachi.

The meeting was informed that lack of facilities at the dry port had forced the traders to rely on trucks and other expensive means of transportation to ship their goods to Karachi and onwards.

The SCCI delegation included Dry Port Standing Committee Chairman Ziaul Haq Sarhadi, while Muhammad Shah and Muhammad Tayyab of Pakistan Railways also attended the meeting.
 
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South Asian Media Net

Textile exporters lag behind BD, India
Saturday, October 24,2009

LAHORE: The textile industry is facing many constraints which are self-inflicted, like absence of research and development and technological backwardness, as well as state-imposed like power and energy shortages, high interest rates, lack of loan restructuring and market access.

A study by The News reveals though Pakistan is the third largest consumer of cotton in the world, its textile exports are less than those of Bangladesh, which consumes one-third of cotton compared to Pakistan. Similarly, India’s textile exports corresponding to its use of cotton are much higher than Pakistan because of higher value addition.

Pakistan has even failed to keep pace with the expansion of the global textile market which, according to Technopak and Werner Analysis, rose from $482 billion in 2005 to $583 billion in 2008.

Pakistan’s share in global textile exports was a little over 2 per cent in 2005, which declined to 1.8 per cent in 2008. In fact, Pakistan’s textile exports of $10.57 billion in 2008 were less than the textile exports of Bangladesh, which fetched $11.17 billion.

India exported textiles worth $20.23 billion in 2008, which was double the exports from Pakistan, although at the start of the current century the difference between textile exports from Pakistan and India was around $3 billion.

On the government side, no serious efforts were made to increase cotton production, the basic raw material for the textile industry. In the year 1991-92, Pakistan and India were producing same quantity of cotton at around 14 million bales.

However, Pakistan’s cotton output has declined to around 11.5 million bales while the Indians are producing over 26 million bales and their production is on the rise.

Pakistan currently imports around four million bales of cotton a year while India which was a net importer at the start of this century is a leading exporter of cotton.

The textile industry faced another drawback due to high prices of polyester staple fibre compared to global rates. This resulted in low consumption of man-made fiber. Currently, cotton to man-made fibre ratio is 80:20 against global average of 60:40.

The nation is paying the price for the short-sighted approach of entrepreneurs which remained content with the money they were making from low value addition and did not initiate research and development work to introduce high value added products. The sector has also suffered due to lack of policy initiatives from the government.

Currently, over 40 per cent of knitwear units are closed while woven garment manufacturing units have also suffered the same fate. According to the All Pakistan Textile Mills Association, 30 per cent of spinning capacity is not operating, causing widespread job losses.

Industry experts say had the entrepreneurs opted for value addition, they could have survived even the most adverse conditions as higher costs associated with high interest rates and soaring electricity, gas and petroleum rates could have been bearable with more value addition.

With present level of value addition in textiles, it seems impossible for the entrepreneurs to bear the high cost of doing business. The government would have to come up with a viable policy to reduce the high cost of doing business.
 
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Khalifa oil refinery project: UAE decides to go ahead

ISLAMABAD (November 16 2009): The United Arab Emirates (UAE) has decided to go ahead with the construction of a 5-billion-dollar oil refinery in Balochistan, officials said Sunday. The refinery with an output capacity of 250,000 barrels per day was postponed in January, due to the global recession and a row over management issues with Islamabad.

"The major contentious issues have been resolved and the project will soon be kicked off," a senior official of Ministry of Petroleum and Natural Resources said. The Khalifa Coastal Refinery project is a joint venture between the Abu Dhabi state-owned International Petroleum Investment Company (IPIC) and the Pak-Arab Refinery Limited (PARCO), which is jointly owned by Pakistan and Abu Dhabi.

PARCO will hold 24 per cent of shares and IPIC the other 76 per cent in the refinery to be built in the coastal area of Hub. The Pakistani government will own 60 per cent of PARCO's share.

According to the official, who spoke on condition of anonymity, PARCO approved initial funding of 500 million dollars as part of its contribution to start the project.

"Out of this total amount, the PARCO board of directors approved immediate release of 13 million dollars to start subcontracting work related to the implementation of the KCR project," he added.

Mehmood Saleem, a senior official in the Ministry of Petroleum and Natural Resources, confirmed that "the project will hopefully be launched" next month, since PARCO had approved the initial funds.

"Now the IPIC and government of Pakistan will finalise the modalities to kick off the project next month," Saleem told German Press Agency dpa. The proposed refinery will produce energy fuels out of Arabian and Iranian crude oil, and its final cost is expected to go beyond 5 billion dollars partly due to the "foreign exchange component," as well as the project expansion plans.

The Pakistani rupee stood at around 60 to the dollar in 2007, when the agreement was first signed, compared to 83 rupees currently. Ahsanullah Khan, Pakistan's former ambassador to Abu Dhabi, said in mid-2008 that the cost estimates of 5 billion dollars for the refinery project would "increase substantially."

It includes a 250-megawatt power generation plant, mini port terminal, an electric power grid station, road network and other necessary infrastructure, he said.

With the completion of the refinery, Pakistan's capacity would be doubled from the current 248,506 barrels per day. Some oil products refined at the new plant would be exported to Pakistan's neighbouring countries, officials said.


Khalifa oil refinery project: UAE decides to go ahead
 
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Pakistan likely to buy Thai, Brazilian sugar

Saturday, November 21, 2009
SINGAPORE/ISLAMABAD: Pakistan is likely to buy Thai or Brazilian sugar as it struggles to ease a supply shortage, while premiums for raws barely moved despite a correction in the futures market, dealers said on Friday.

Pakistan, traditionally the world’s 9th largest raw sugar consumer, plans to start importing half a million tons of white crystal sugar by December and wants to buy 500,000 of raws through private mills after an expected shortfall in the current crop.

“It’s obvious that Pakistan has tried to avoid buying as long as possible but now they are running out of sugar. After a long time of trying to make up their mind, they’ll buy something at very high prices,” said a physical dealer in Singapore.

“They’ll probably buying a mixture of Thai and Brazilian sugar. Thailand doesn’t usually have much availability until late January or early February, but I suspect there’s some white sugar available from the previous crop season.”

Thai raws, a main source for Pakistan, barely changed from last week’s levels at 80 to 85 points above New York’s March contract for March to May shipment, suggesting there was little activity before crushing starts in the new crop season.

“I guess at those premiums, sugar is expensive for buyers,” said a dealer at an international trading house in Jakarta.Pakistan faces a shortfall of more than 1 million tons of sugar, which may swell in the second half of next year if it does not rev up purchases, even though sugar prices have rallied to multi-year highs on strong buying from main consumer India and worries about a widening global supply deficit.


Pakistan likely to buy Thai, Brazilian sugar
 
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