Economy suffers over $35 billion loss due to Afghan turmoil
LAHORE (February 12 2009)
Business community on Wednesday urged Obama's special representative, Richard Holbrooke who is currently visiting Pakistan, to help provide direct access to Pak products in US markets as Pak economy has so far suffered irreparable huge loss of $35 billion direct and indirect due to turmoil in Afghanistan.
Founder chairman Pak-US Business Council and VP Saarc Chamber of Commerce and Industry, Iftikhar Ali Malik while talking to APP here, said that "we entire business community welcome Richard on exploratory visit to Pakistan". He said it is on record that Pakistan is the only country in the world which has not only suffered tremendous economic loss but also huge human loss in war against terror.
Iftikhar said that more than three million Afghan refugees in Pakistan were also posing security risk. He said that entire Pakistani nation including business community, all political parties under the dynamic leadership of President Asif Ali Zardari and guidance of Prime Minister Syed Yousuf Raza Gilani, people from all strata of the society stand united against the menace of terror and fully committed to defeat it as Pakistan has always been an active US associate against the menace of terror.
He said due to war on terror, Pakistan's national economy is exclusively suffering a net loss of $6 billion annually as a fallout of the war against terror, which has displaced thousands of people and endangered security in the country.
In the prevailing scenario, United States must provide direct market access to Pak products on zero rate duty to help stabilise the country's bleak economy in the wake of the war against terror.
Iftikhar who is also co-chairman businessman panel, the largest alliance of chambers in the country and ruling group in FPCCI on behalf of entire business community again urged for US assistance to Pakistan to help overcome the economic crisis, by restoring the quota for Pakistan at par with all other under developed countries.
"The US should buy back products from industrial zones in Pakistan and help strengthen the existing industrial zones with the provision of modern infrastructure", he said, adding that proper and timely American assistance will help ensure durable peace and stamp out terrorism, besides strengthening the democratic government in Pakistan.
Observing that due to the unrest and turmoil in a neighbouring country, he said a major chunk of Pak food stock is smuggled to Afghanistan, which ultimately leads to acute foodgrain scarcity within Pakistan. The current economic crisis looming world-wide has especially impacted the poor countries, he added.
He said there is vast scope for US private sector investors in every sphere of life, particularly in the agro power and IT sectors, adding that the US Chamber of Commerce (USCC) can play a pivotal role in promoting bilateral trade relations.
"Pakistan is an emerging market rich in opportunities for American investment, while the US is already an important trading partner" he said. Malik urged the need to restore relations to the pre-9/11 level, adding that good relations between the US and Pakistan, and the Muslim ummah will help restore confidence and attain world peace. "With South Asia becoming the hub of international economic activity, restoration of peace in the region is all the more necessary," he observed.
Copyright Associated Press of Pakistan, 2009
Most of industries in Site stopped working due to low gas pressure
RECORDER REPORT
KARACHI (February 12 2009)
Most industries in the Sindh Industrial Trading Estate (Site), Karachi, largest industrial area in Pakistan, have come to a grinding halt due to low pressure of gas. Engr M.A.Jabbar, Chairman, Site Association of Industry (SAI) has expressed grave concern over this development which would result in production and exports losses running into millions of rupees.
He told Business Recorder: "It is regrettable that despite hectic calls, none of the officials are responding to explain the situation. The industry is at a standstill but I cannot be connected to the SSGC Managing Director as his secretariat's usual reply is that he is busy in a meeting."
In a letter sent to Umair Khan, Managing Director, Sui Southern Gas Co Ltd (SSGC) on February 11, his attention has been drawn to the prevailing situation of depression and fluctuation of gas pressure supply in whole Site industrial estate for the last few days. "Site is the biggest industrial area of Pakistan providing sizeable contribution to GDP and exports and as such it is the biggest purchaser of utilities, including gas, from your esteemed company," he said.
The SAI Chairman expressed surprise that the situation that affected industrial output has remained non-notified to the Association. "In the industrial area we are confronted with daily explanations sought by our members as to what is happening in SSGC, vis-à-vis low gas pressure supply. De-stability of your system should have been brought to your notice prior or immediately upon development of the adverse situation for member industries to adjust to its economics of working in the absence of proper gas supply," he said.
Textile processing units which are export oriented, committed to meeting export targets are suffering badly, he said, adding that some of SAI's valued members, consuming a considerable quantity of gas have complained of losses that can not be retrieved due to interruption of process.
There was need for developing better relationship and apprising "us as to what was going on with gas load management. How many more days it will take to restore the gas supply to normal contracted values and how do you defend the company as having not put the industry to notice prior to development of present situation."
Copy of the letter has also been sent to Secretary, Ministry of Petroleum & Natural Resources, Islamabad, and Chairman of Oil and Gas Regulatory Authority, (Ogra), Islamabad.
Jabbar said that the industry is cheated on recurring basis by SSGC through overcharged bills. In major industries the metering is based on no pressure correction recording and as such the low pressure registers over-billing. "We have repeatedly drawn SSGC's attention to refunding the amount charged to customers on account of low gas pressure supply. They keep silent on this issue because the 17 percent return on the assets give them all the luxury of enjoying the price and perks of theirs, which do not change or are reduced even if the industry is closed or is subject to heavy losses on account of low gas pressure supply," he said.
Copyright Business Recorder, 2009
PEW stresses need for plan to control inflation
RECORDER REPORT
ISLAMABAD (February 12 2009)
The Pakistan Economy Watch (PEW) has stressed the need of a systematic plan of action to bring inflation under control as it is threatening some most critical sectors of the economy, said Dr Murtaza Mughal, President of PEW, here on Wednesday.
Talking to a delegation of industrialists, he said that the State Bank of Pakistan seems very concerned about inflation, as everything has become more "valuable", except rupee, and it seems that efforts to bring down inflation are increasing unemployment as industrial, manufacturing, exports and other sectors are making downsizing.
"The survival of manufacturers, exporters and millions of employees is at stake due to cost of credit," he said, adding that industrial units are closing down in large numbers, which is sending wrong signals.
He said that many industrial units are not viable anymore, but the owners are running them to remain in business, keep presence in international market or preserve family honour. "There must be some missing links in the monetary policy; everything cannot be compromised just because some policymakers feel strongly about progressive price increase", he added.
"Suppressing inflation is not the only obligation of the regulators", he said. "Who will frame policies to boost or at least maintain domestic production which is sliding at a fast pace threatening whole system?" Dr Mughal asked. He said: "We have developed the habit of obeying every demand of the international lenders, except for taxing the sacred cows," he said, adding that the tendency was an obstacle in achieving the tax-to-GDP ratio.
He stressed the need for concrete plans to revive the ailing economy, saying that one of the highest interest rates, widening trust deficit and uncertainty touching skies, "we should have a strategy to bail out the country". Inflation, he said, "is not the only threat to economy; we should also take sliding savings and revenue collections into account. Consumer finance conditions or banks needs to be made stringent to block unplanned expansion and avoid any crisis".
Copyright Business Recorder, 2009