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i need all content related to current affairs. i am beginner,i also need suggestion from you
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could you please upload some stuff regarding "peace process will bring peace between pakistan india relations"....
and "there will be water wars b/w india - pak"... i am a beginner
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could you please upload some stuff regarding "peace process will bring peace between pakistan india relations"....
and "there will be water wars b/w india - pak"... i am a beginner
Dear , I need to write .For this ,it will take time. whenever I am free , I will for sure

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I will share what ever stuff I have
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Originally Posted by SADIA SHAFIQ View Post
From Raymond Davis to Shakeel Afridi .

1.Raymond Davis to OBL fiasco.
2.Admiral Mike Mullen statement that Pakistan is providing safe havens to terrorist
3,November Salala incident .
4.Closure of Ground line of Communication (GLOC) ,
5.the eviction of US-personnel from Shmasi Air-field in Baluchistan .
6.Warning of high profile visits and scrutiny in Islamabad .


President Obama said;

''Will continue to Press Pakistan
to expand its participation in securing
more powerful future for this war torn
region
.''

  • Developments shows GHQ policies prevailed in decision making that is why 2.provided safe havens to Taliban.
    3.President Obama did not visited in Pakistan during their tenure before 4.presidential election, even in 2010 when he came to India .
    5.Ambassador Sherry Rehman opined per-requisites for resulting bilateral Relations ;
    6.Apology of salala incident,
    7.Releasing suspended CSF reimbursement ,
    8.Increasing counter terrorism sharing intelligence sharing .
    9.Halting drone attacks.Shifting of policy of ''Trade ,not aid .'

High profile political assassinations;


1.4 jan,2011 -Salaman Tasseer
2.March 2011 --shehbaz Bhatti
3. 22 May , 2011 -Mehran Naval Attack .
4.Torture and killing of journalist Saleem shehzad .


Memo-gate and domestic tensions have deteriorated further space in relations .Hilary Clinton delayed apology regarding salala incident due to burning of Holy Quran. It was because Pakistan is aiding Haqqani network which strengthened Taliban government . Afghanistan has been divided into Northern Alliance and Taliban ; the later are majority in the region and not under the control of NATO and ISAF .

U.S congressional hearings and issue of Baluchistan .

Relations further riled in Feb, 2012 when house of foreign affairs sub-committee on oversight and investigations held a hearing on Baluchistan ,province of Pakistan that is a site of long running separatist movement .The congress has passed resolution for a separate province .


Previous PM Gillani called it an attack on Pakistan sovereignty, and Pakistan ambassador warned it would harm bilateral relations .The Obama administration has distanced itself calling that it has no policy to support Baluchistan issue .

Parliamentary review of bilateral relations

Parliament has passed following recommendations regarding bilateral diplomacy after a prolonged delay .Policy making is the matter of Pakistan cabinet ,not of Parliament.That`s why Pakistan has delayed in foreign policy shift, which is not at all any policy itself , but represents the weakens of spineless Parliament.


1.Halting drone attacks
2.Apology of salala incident
3.cessation of infiltration into Pakistan `s territory including hot pursuits .
4.Pakistan air ,land -space would not be used for passing the arms and ammunition towards Afghanistan
5.NATO and ISAF attack should be stopped that is blatant violation of 6.Pakistan`s sovereignty.
7.No verbal agreement regarding national security shall be entered into by 8.government and all such agreements and misunderstanding shall cease exist to forthwith .
9.No overt and covert operation inside Pakistan territory should be permitted .
10.No private security contractors and intelligence officers shall be allowed with it .
11.Pakistan territory will not be provided for the establishment of any foreign bases .
12.Military reimbursement should be paid which is amounted nearly 1 million dollar of worth , also counter terrorism funding is pending

NATO Chicago Summit


21-22 May ,summit held in Chicago, first summit that ever held outside American city .Pakistan has boycotted previous summit to express its apprehension regarding Salala incident .So it was unclear ,either Pakistan would be invited or not .A few days before the inaugural , Pakistan is invited .But President Obama did not bother to meet with zardari on sideline talks .


1.Conviction and standing of dr. Shakeel Afridi
2.Haqqani network issue .
3.Bilateral diplomacy cease to exist .
4.Drone issues
Role of ISI (aiding taliban )
5.Ongoing turmoil in Pakistan and Afghanistan relations .
6.Pakistan Arab fertilizer company is producing Ammonium Nitrate(Multan region ,largest fertlizer company in the country) and it is exported that to 7.Taliban ,which is used in making hand made bombs as well as explosives devices .
well very nice...i have read all of your notes and they are really helpful for studies..
can you plz throw some light on the relations after u.s exit from Afghanistan...
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well very nice...i have read all of your notes and they are really helpful for studies..
can you plz throw some light on the relations after u.s exit from Afghanistan...
My all notes are in hard copy and what I wrote was in my mind except my first post . You know correct writing take time and I am unfortunate having splendid notes and handwork., I can not perform well in this very paper .That is because ,I have over-stuffed with CA ,so could not manage my paper . well , I can write about all .I have`nt prepared economy related issues ,so It would be posted after study .I am busy in my schedule and will format all requested notes in soft form as soon as it might be .. Thanks for appreciation .
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Friends or Foe !


Pakistan and India diplomatic dealings tangled in past when subcontinent shaped into Pakistan and India. Red cliff was judicial one ,but lack any judicial attribute . Ferooz pur and Junagad districts were given to India ,which provided route towards Kashmir .Three wars were fought between two countries which never gave them a single chance of good relationship. Though , Shimla ,Agra and Lahore summit were good moves ,but Siachen conflict further strained the relations . Kargil war , Samjhoota Express bombing and Mumbai attacks deteriorated relations .


Seeds of conflict


  • Junagadh dispute(Run of Kusch area ;maritime border dispute ).
  • Kashmir dispute(Three major wars ).
  • Siachen Glacier.
  • Water disputes.
  • Afghanistan and Baluchistan .
  • 2007 Samjhauta Express bombings.
  • 2008 Mumbai attacks.
  • Fugitives issues .


Since from a very long time ,both countries distanced each other as hostile neighbors. During Musharaf`s tenure ,efforts have been made for friendly relations . 2004 Composite dialogue has been initiated as a posture of good will . But Mumbai incident made all steps in vain for the betterment of relations .

The Process of dialogue .

Normalization in relations has been started since 2004 , and during the PPP led government relations boomed for the first time .Apparently ,it seems both countries are friends ; Pakistan declared that it will grant MFN status to India and India will vote for Pakistan in EU regarding trade concession .


Presidential meetings in Delhi , cricket diplomacy , army to army and journalist to journalist contacts have been boomed .Joint secretary and foreign ministers meetings held which smoothened a road of good will .But seeds of enmity can be seen when India premier conditioned its meeting till Pakistan will declare Haqqani-network as terrorist organization .

  • Restrictive Visa regime .
  • strategic dialogue .
  • Singing and Cooking competitions .
  • Trade road map.
  • LoC trade
  • Siachin Issue is not issue at all .

India believe in conditional diplomacy being South-Asian giant after China. It wants to dictate its own term . Though, Pakistan has liberalized its diplomatic relations with all regional neighbors. For example, Islamabad has supported Iran in case of Jandollah `s issue , seek apology for creating unrest in bordering region of China ; Xinjiang .But Pakistan is treating each neighbors on equal basis .

Many Pakistan`s media intellectuals have supported we should accept each and every term of India ,because we also accepted the same in case of USA. India has liberalized only Visa regime regarding trade whereas , no journalistic and common man Visa has been issued. This will provide opportunity to Indian`s big corporates to invest and monopolize Pakistan`s trade unions .

But , we do not want to become hostage of past ,that statement has been issued by foreign minister Hina Rabbani Khar . Forty years policy has been changed and we have to overlook convergences rather then on divergences ; this view is clearly manifested. Similar views have been expressed by S.M,Chrishna ,FM of India .But during visit to Pakistan , S.M. Chrishna did not like to be interviewed ,whereas our FM, Kkar has given more then 15 interviews showing imbalance equation of information flow .


India and Pakistan “should have a trade map in the next three years,” said S. M. Muneer, the Vice Chairman of MCB Bank; he dreams of “transforming our region into a Union,” and understands the need to nurture and integrate small enterprises into the bilateral engagement. Most others talked of the common problems of energy and water scarcity, of rotting grain and lack of storage capacity, of the need to lower the cost and processes of doing business, and of political corruption and cronyism. They also talked of common strengths and potential – a youthful population, a rising middle class, geographic location, agriculture and agro-industry potential, a strengthening federation, and the need to create new models of business and of development. Though such sentiments are repeated frequently, the gap in economic growth and vitality between India and Pakistan widens visibly.

The obvious immediate winners are the cement and sugar industries, both of which Pakistan has a surplus of and India a shortage of, and which can be transported at low-cost across the border. India has a growing agriculture and automobile industry, which Pakistan needs. Pakistan wants to learn India's ICT skills, and India can leverage Pakistan's textile manufacturing expertise and global market reach. India-Pakistan trade, currently at $2.5 billion, can reach $20 billion over the next five years, said Asrar Raouf, a senior member of Pakistanis Federal Board of Revenue.


The Siachen Issue .


The roots of the conflict over Siachen (the place of roses) lie in the non-demarcations on the western side on the map beyond NJ9842. The 1949 Karachi agreement and the 1972 Simla agreement presumed that it was not feasible for human habitation to survive north of NJ9842. Piror to 1984 neither India nor Pakistan had any permanent presence in the area.


Somewhere in 1984, India did the ‘Kargil in reverse’ on Pakistan. Till then, Siachen had remained an undemarcated region because of its impassibility and the Line of Control (LOC) stopped considerably short. Most mountaineering expeditions to the region were routed through the Pakistani territories. Fearful that Pakistan might move into the area and occupy some vantage peaks, India pre-empted to do exactly the same and set into place the longest conflict at the highest altitudes in the history of warfare. Trust South Asia to indulge in platitudes of unmatchable quality even when fighting wars.

The area is in the phase of strategic and tactical stagnation, with the 70 Kms long glacier under the arrogated control of India. Where man or beast feared to tread, there are now oil pipelines and logistics tracks that criss-cross the region., the two sides recommend to their officialdom a joint recording of the respective force positions along the Saltoro Ridge and those occupied by Pakistan below that ridge and exchange such records. Subsequently, the region must be demilitarized under a verifiable regime and reverted to its status of 1984-ante.


If earlier India insisted on authenticating the Actual Ground Position Line (AGPL), their revised stance is to convert the AGPL into an extended LOC. This is India's maximality position. A negotiated settlement in the longer term interest of saving the two societies from turmoil will indeed be via media. The group's recommendations based on a common understanding of the underlying determinants and vulnerabilities suggest that via media. The Pakistanis pointed to an implicit authentication of the AGPL when positions are recorded and exchanged.

The sir creek boundary and matter of fugitives .


According to dialogues between India and Pakistan sources on Siachen might take place in second week of April in New Delhi.According to sources, the interim government may change the schedule of the dialogue for settlement of the aforesaid issue. Both the countries are consistent on their stances regarding the Siachen issue.India wants to tackle the Sir Creak issue before the issue of Siachen but at the same time it would not like to retreat from its position of 1984 at any cost while Pakistan would like to go back on the position where it existed before 1884.This is the main reason behind the issue which has become a bone of contention between the two countries. That is why both of them can’t succeed in tackling it despite their aspirations.


Many captives have been released who crossed the boundary of Run of kuch , fishermen become victim of the harsh policies and stances adopted by governments. They have to remain in prison for years. India and Pakistan ,both claimed over this area.Most of the Illegal Indian trade held through this route and which is without custom charges . This is also infiltration of government revenue which is lost by corruption .


Pakistan and India strategic dialogue .

The list of core issues between two states is nearly similar to Pak-US . India has emphasized issues of its own interests and put divergences behind . The main goal of India is to become a gateway for trade and access to the Caspian resources . Ironically , without solving issue trade would not be bolstered further . The same fact have been evident when Visa regime have been signed . After a few months later , India violated the GLoC of Kasmir and reverted its stances back .It might be due to Pakistan have given Gawader Port to China and IP is under construction . Earlier , china`s own bank has denied any kind of aid regarding pipeline construction and Pakistan will have to pay 200 million USD per day as a charge . The list of issues which are under discussion is given below ;
  • Health
  • Education and science
  • Trade
  • Agriculture
  • Information
  • Tourism
  • Climate change
  • Kasmir Issue
  • Water dispute
  • Boundary disputes of Sir creek and Siachen

Though , India has constructed wall between borders .The border between India and Pakistan is one of the most volatile on the planetWalls, barbed wire fences and barricades stretch almost half the 2,900km (1,800 mile) boundary line. Delhi has said it intends to extend the barrier along almost the whole border. At the end of the 1980s, India began erecting barriers in the states of Punjab and Rajastan, saying they needed to combat terrorism. An additional cause of tension is the use of barbed wire fences combined with mines and other high-tech devices along almost all of the so-called "Line of Control", the de facto border between Indian- and Pakistani-administered Kashmir.

In the end , both countries have moved towards good ways ,but could not go further without resolution of issues .Without resolution of issues ,our diplomacy is a failure indeed .And It clearly shows we can not solve issues on table . While peace and resolution of issues is necessary for both countries

Visit my blog for better review of the post .It is mentioned in my profile .
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Friends or Foe !


Pakistan and India diplomatic dealings tangled in past when subcontinent shaped into Pakistan and India. Red cliff was judicial one ,but lack any judicial attribute . Ferooz pur and Junagad districts were given to India ,which provided route towards Kashmir .Three wars were fought between two countries which never gave them a single chance of good relationship. Though , Shimla ,Agra and Lahore summit were good moves ,but Siachen conflict further strained the relations . Kargil war , Samjhoota Express bombing and Mumbai attacks deteriorated relations .


Seeds of conflict


  • Junagadh dispute(Run of Kusch area ;maritime border dispute ).
  • Kashmir dispute(Three major wars ).
  • Siachen Glacier.
  • Water disputes.
  • Afghanistan and Baluchistan .
  • 2007 Samjhauta Express bombings.
  • 2008 Mumbai attacks.
  • Fugitives issues .


Since from a very long time ,both countries distanced each other as hostile neighbors. During Musharaf`s tenure ,efforts have been made for friendly relations . 2004 Composite dialogue has been initiated as a posture of good will . But Mumbai incident made all steps in vain for the betterment of relations .

The Process of dialogue .

Normalization in relations has been started since 2004 , and during the PPP led government relations boomed for the first time .Apparently ,it seems both countries are friends ; Pakistan declared that it will grant MFN status to India and India will vote for Pakistan in EU regarding trade concession .


Presidential meetings in Delhi , cricket diplomacy , army to army and journalist to journalist contacts have been boomed .Joint secretary and foreign ministers meetings held which smoothened a road of good will .But seeds of enmity can be seen when India premier conditioned its meeting till Pakistan will declare Haqqani-network as terrorist organization .

  • Restrictive Visa regime .
  • strategic dialogue .
  • Singing and Cooking competitions .
  • Trade road map.
  • LoC trade
  • Siachin Issue is not issue at all .

India believe in conditional diplomacy being South-Asian giant after China. It wants to dictate its own term . Though, Pakistan has liberalized its diplomatic relations with all regional neighbors. For example, Islamabad has supported Iran in case of Jandollah `s issue , seek apology for creating unrest in bordering region of China ; Xinjiang .But Pakistan is treating each neighbors on equal basis .

Many Pakistan`s media intellectuals have supported we should accept each and every term of India ,because we also accepted the same in case of USA. India has liberalized only Visa regime regarding trade whereas , no journalistic and common man Visa has been issued. This will provide opportunity to Indian`s big corporates to invest and monopolize Pakistan`s trade unions .

But , we do not want to become hostage of past ,that statement has been issued by foreign minister Hina Rabbani Khar . Forty years policy has been changed and we have to overlook convergences rather then on divergences ; this view is clearly manifested. Similar views have been expressed by S.M,Chrishna ,FM of India .But during visit to Pakistan , S.M. Chrishna did not like to be interviewed ,whereas our FM, Kkar has given more then 15 interviews showing imbalance equation of information flow .


India and Pakistan “should have a trade map in the next three years,” said S. M. Muneer, the Vice Chairman of MCB Bank; he dreams of “transforming our region into a Union,” and understands the need to nurture and integrate small enterprises into the bilateral engagement. Most others talked of the common problems of energy and water scarcity, of rotting grain and lack of storage capacity, of the need to lower the cost and processes of doing business, and of political corruption and cronyism. They also talked of common strengths and potential – a youthful population, a rising middle class, geographic location, agriculture and agro-industry potential, a strengthening federation, and the need to create new models of business and of development. Though such sentiments are repeated frequently, the gap in economic growth and vitality between India and Pakistan widens visibly.

The obvious immediate winners are the cement and sugar industries, both of which Pakistan has a surplus of and India a shortage of, and which can be transported at low-cost across the border. India has a growing agriculture and automobile industry, which Pakistan needs. Pakistan wants to learn India's ICT skills, and India can leverage Pakistan's textile manufacturing expertise and global market reach. India-Pakistan trade, currently at $2.5 billion, can reach $20 billion over the next five years, said Asrar Raouf, a senior member of Pakistanis Federal Board of Revenue.


The Siachen Issue .


The roots of the conflict over Siachen (the place of roses) lie in the non-demarcations on the western side on the map beyond NJ9842. The 1949 Karachi agreement and the 1972 Simla agreement presumed that it was not feasible for human habitation to survive north of NJ9842. Piror to 1984 neither India nor Pakistan had any permanent presence in the area.


Somewhere in 1984, India did the ‘Kargil in reverse’ on Pakistan. Till then, Siachen had remained an undemarcated region because of its impassibility and the Line of Control (LOC) stopped considerably short. Most mountaineering expeditions to the region were routed through the Pakistani territories. Fearful that Pakistan might move into the area and occupy some vantage peaks, India pre-empted to do exactly the same and set into place the longest conflict at the highest altitudes in the history of warfare. Trust South Asia to indulge in platitudes of unmatchable quality even when fighting wars.

The area is in the phase of strategic and tactical stagnation, with the 70 Kms long glacier under the arrogated control of India. Where man or beast feared to tread, there are now oil pipelines and logistics tracks that criss-cross the region., the two sides recommend to their officialdom a joint recording of the respective force positions along the Saltoro Ridge and those occupied by Pakistan below that ridge and exchange such records. Subsequently, the region must be demilitarized under a verifiable regime and reverted to its status of 1984-ante.


If earlier India insisted on authenticating the Actual Ground Position Line (AGPL), their revised stance is to convert the AGPL into an extended LOC. This is India's maximality position. A negotiated settlement in the longer term interest of saving the two societies from turmoil will indeed be via media. The group's recommendations based on a common understanding of the underlying determinants and vulnerabilities suggest that via media. The Pakistanis pointed to an implicit authentication of the AGPL when positions are recorded and exchanged.

The sir creek boundary and matter of fugitives .


According to dialogues between India and Pakistan sources on Siachen might take place in second week of April in New Delhi.According to sources, the interim government may change the schedule of the dialogue for settlement of the aforesaid issue. Both the countries are consistent on their stances regarding the Siachen issue.India wants to tackle the Sir Creak issue before the issue of Siachen but at the same time it would not like to retreat from its position of 1984 at any cost while Pakistan would like to go back on the position where it existed before 1884.This is the main reason behind the issue which has become a bone of contention between the two countries. That is why both of them can’t succeed in tackling it despite their aspirations.


Many captives have been released who crossed the boundary of Run of kuch , fishermen become victim of the harsh policies and stances adopted by governments. They have to remain in prison for years. India and Pakistan ,both claimed over this area.Most of the Illegal Indian trade held through this route and which is without custom charges . This is also infiltration of government revenue which is lost by corruption .


Pakistan and India strategic dialogue .

The list of core issues between two states is nearly similar to Pak-US . India has emphasized issues of its own interests and put divergences behind . The main goal of India is to become a gateway for trade and access to the Caspian resources . Ironically , without solving issue trade would not be bolstered further . The same fact have been evident when Visa regime have been signed . After a few months later , India violated the GLoC of Kasmir and reverted its stances back .It might be due to Pakistan have given Gawader Port to China and IP is under construction . Earlier , china`s own bank has denied any kind of aid regarding pipeline construction and Pakistan will have to pay 200 million USD per day as a charge . The list of issues which are under discussion is given below ;
  • Health
  • Education and science
  • Trade
  • Agriculture
  • Information
  • Tourism
  • Climate change
  • Kasmir Issue
  • Water dispute
  • Boundary disputes of Sir creek and Siachen

Though , India has constructed wall between borders .The border between India and Pakistan is one of the most volatile on the planetWalls, barbed wire fences and barricades stretch almost half the 2,900km (1,800 mile) boundary line. Delhi has said it intends to extend the barrier along almost the whole border. At the end of the 1980s, India began erecting barriers in the states of Punjab and Rajastan, saying they needed to combat terrorism. An additional cause of tension is the use of barbed wire fences combined with mines and other high-tech devices along almost all of the so-called "Line of Control", the de facto border between Indian- and Pakistani-administered Kashmir.

In the end , both countries have moved towards good ways ,but could not go further without resolution of issues .Without resolution of issues ,our diplomacy is a failure indeed .And It clearly shows we can not solve issues on table . While peace and resolution of issues is necessary for both countries

Visit my blog for better review of the post .It is mentioned in my profile .
excellent madam...sada and khobsurat
what if we start the issue with this line "pakistan's relation with india is a love hatred relationship which has its roots from the inception of both countries....
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excellent madam...sada and khobsurat
what if we start the issue with this line "pakistan's relation with india is a love hatred relationship which has its roots from the inception of both countries....
you want discussion or suggesting me ? If you want to write like that then it`s up to you .In fact many points further can be added .I just provided an outline .
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@All you people have requested to post regarding economy ... I could not complete it but I am going to post it now .. I have given preview of two sectors of economy by dividing it into three major sectors...

Economy of Pakistan.



Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Pakistan economic conditions are bad due to growing terrorism, political instability, infrastructure problems and lack of stable foreign policy .It is being feed by foreign organization like IMF and various banks. Pakistan policy makers have to work according to their conditions which have hampered its own economic interest. The most immediate vulnerability lies in the country’s external position. Foreign exchange reserves have plunged to a critical low in the past two months. This has resulted from a sharp rise in the current account deficit, with the import bill surging, capital flows at a virtual standstill and continuing external debt repayments, including to the International Monetary Fund (IMF).


There are three major sectors of economy which includes; agriculture, industries and commodity producing sector. Agriculture includes crops, livestock, forestry and fishing .whereas leading industries of Pakistan are mining and Quarrying , manufacturing , electricity distribution ,production as well as gas distribution and construction . Commodity sector includes wholesale trade, communication, transportation, finance, insurance, storage and housing industry. How these three sectors are contributing to our economy is being discussed with analysis.


Agriculture:


Agriculture is central to economic growth and development in Pakistan. Being the dominant sector, it contributes 21.4 percent to GDP, employs 45 percent of the country’s labor force and contributes in the growth of other sectors of the economy. In order to improve efficiency of this sector, it has been devolved to provinces to boast market oriented results. The previous federal ministry has been renamed as “National food security and research”. To improve efficiency , it has initiated “zero hunger pro-gramme “ which aimed at providing food in security risked areas, to pregnant women and feeding of children below five as well as to provide food in schools.


During 2012-13, agriculture sector exhibited a growth of 3.3 percent on the back of positive growth in agriculture related sub sectors, Crops grew at 3.2 percent, Livestock 3.7 percent, Forestry 0.1 percent and Fishing 0.7 percent. During 2012-13 weather condition and water situation has an impact on these Kharif crops that paved the way for decrease in output of rice and cotton crops. Except cotton ginning, all other sub-sections of agriculture has shown improvement in their yield and production. It might due to 12.7 % less availability of water in comparison with previous year.


Textile industry which is heavily depended in cotton lint suffered a severe back short .Consequently; it has increased inflation and lowers the buying trend of textile goods. Sugar cane crop has given a healthy boast up of 62% in 2013 comparing it previous year which has 59% approximately. It helps in the manufacturing of paper, clip board and ethanol. Rice is an important cash crop of the country types. Rice ranks as second amongst the staple food grain crop in Pakistan and it has been a major source of foreign exchange earnings in recent years.


The production decreased due to decrease in area and affects of monsoon rain and late receding of water period in rice fields prolonged the sowing. Pakistan has introduced mechanization, fertilizer and developed irrigation system to boast up agrarian products. The sector provides net source of foreign earnings. Historically livestock has been dominated by smallholders to meet their needs of milk, food security and cash income on daily basis. Gross value addition of the livestock sector at constant cost factor has increased from Rs.735billion (2011-12) to Rs.756 billion (2012-13); showing an increase of 2.9 percent as compared to Previous year. Poultry sector is one of the most organized and vibrant segments of the agriculture industry of
Pakistan.

Industrial sector:




Manufacturing accounts for 13.2 % of gross domestic production and 13.8% of employed labor force. It is one of the most vibrant sectors of economy which is divided in to large scale manufacturing and small scale manufacturing. It has received a severe setback due to energy shortages and electricity shortfall. In rubber products group, motor tires and cycles tubes were the main contributors which managed to grow by 18.12 percent and 12.62 percent, respectively. The growth in iron & steel products was on account of growth recorded in H/CR sheets/strips/coils/plates 45.53 percent. Three steel plants were commissioned in Karachi during 2012(One in H2-FY12 and two in H1-FY13) are joint ventures with Saudi Arabia, Japan and International Finance Corporation which also improved steel production in the country.

In petroleum refining, higher margins improved the cash flows of local refineries and in addition partial resolution of the circular debt situation also enabled the firms to import more crude oil and increase capacity utilization. Petroleum products growth mainly arrived from the production of LPG 25.72 percent, motor sprits 21.90 percent and furnace oil 19.83percent during the period under review. In non metallic mineral product, cement managed to grow by 6.08 percent because of timely release of public sector development funds during the period amounting to Rs. 183.2 billion, which stimulated the construction activities.

The food, beverages & tobacco and textile group which accounts about half of the Large Scale Manufacturing (LSM) remained modest during the Period under review. The items showed positive growth in food, beverages & tobacco includes soft Drinks 15.58 percent, juices, syrups & squashes 14.05 percent, cooking oil 14.75 percent and tea Blended 18.99 percent. Restaurant and fast food chains are flourishing in the country. The demand for dairy products, processed food and beverages has increased manifold thus brought a positive impact in food group. In textile groups, items registered positive growth includes cotton yarn 1.27 percent, cotton cloth 0.22 percent, knitting wool 14.89 percent and woolen & worsted cloth 2.20 percent.

The reason behind the negative growth of electronics is smuggling on large scale.TV , air conditioners , electric bulbs and automobiles like jeep buses , cars showed a negative growth with respect to previous year.


Agro-based industries boasted the GDP because of heavy production which spurred to an incremental increase in industrial goods. Iron import has improved the manufacturing industry further. Except textile industry, all industries spurred manufacturing growth. Textile industry severe setback due to minimum production of cotton affected badly GDP. In order to increase its production, it needs specialized labor, large investment in machinery and developed technology. Apart from above mentioned facts energy short fall need to be reduced. The export ration of ready-made garments has increased also by 12%.Same is the case with towel ,canvas ,jute , woolen fabrics and art silk and synthetic weaving industry which tantamount sharp increase in prices of garment products.

Fertilizer is second consumer of gas after energy sector .On June 2012 gas pipelines had been closed of sui-Northern due to shortage of gas. This policy of gas supply is deteriorating the fertilizer industry of country which is resulting into low production, undue price hike, increase in imports and subsidy, depletion of foreign exchange reserves and erosion of investment. In 2012-13, the cement industry witnessed the continuation of high retention prices that helped cement companies to improve their margin. Pakistan is among top 20 leading producers and top 5 leading exporters of cement in the world. Pakistan cement isbeing exported to Afghanistan, South Africa, Iraq, India, Sri Lanka, Tanzania, Djibouti, Mozambique,Sudan and Kenya.

All information has been extracted from economic survey ...
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Default updated economic conditions ... an addendum !

Economy of Pakistan.



Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Pakistan economic conditions are in bad conditions due to growing terrorism, political instability, infrastructure problems and lack of stable foreign policy .It is being feed by foreign organization like IMF and various banks. Pakistan policy makers have to work according to their conditions which have hampered its own economic interest. The most immediate vulnerability lies in the country’s external position. Foreign exchange reserves have plunged to a critical low in the past two months. This has resulted from a sharp rise in the current account deficit, with the import bill surging, capital flows at a virtual standstill and continuing external debt repayments, including to the International Monetary Fund (IMF).


There are three major sectors of economy which includes; agriculture, industries and commodity producing sector. Agriculture includes crops, livestock, forestry and fishing .whereas leading industries of Pakistan are mining and Quarrying , manufacturing , electricity distribution ,production as well as gas distribution and construction . Commodity sector includes wholesale trade, communication, transportation, finance, insurance, storage and housing industry. How these three sectors are contributing to our economy is being discussed below.

a) commodity sector
b) Agriculture Sector
c) Industry In Pakistan


Energy sector in Pakistan


Electricity is considered to be life line of any economy and most vital instrument of socioeconomic development of a country. Electricity is pivotal in running machinery in factories and industrial units, for lighting our cities and powering our vehicles. The challenge of ensuring electricity access for industries and providing increased access to the poor parts of the population is the key issue for any government.There has been an enormous increase in the demand of energy as a result of industrial development and population growth, in comparison to enhancement in energy production. Supply of energy is, therefore, far less than the actual demand, resultantly crisis has emerged.

Pakistan’s energy infrastructure is not well developed, rather it is considered to be underdeveloped and poorly managed. Currently the country is facing severe energy crisis. Despite of strong economic growth and rising energy demand during past decade, no serious efforts have been made to install new capacity of generation. Consequently, the demand exceeds supply and hence load-shedding is a common phenomenon through power shutdown.

After the independence, Pakistan inherited 60MW of power generation capability for a population of 31.5 million, yielding 4.5 units per capita consumption. Twelve years later, when WAPDA was created in 1959, the generation capacity had increased to 119 MW.

In 1964-65, the electricity generation capability rose to 636 MW from 119 MW in 1959, and power generation to about 2,500 MKW from 781 MKW. The rapid progress witnessed a new life to the social, technical and economic structures of the country, mechanized agriculture started, industrialization picked up and general living standards improved.

The task of accelerating the pace of power development picked up speed and by 1970, in another five years the generating capability rose from 636 MW to 1331 MW with installation of a number of thermal and hydel power units. In the year 1980 the system capacity touched 3000 MW which rapidly rose to over 7000 MW in 1990-91.In 2006, the Asian Development Bank has estimated that 45 percent of Pakistan’s population lacked access to electricity.

Electricity crisis worsens in Pakistan in 2008 as shortage of Electricity has increased up to 4000MV. Pakistan's industrial consumers were facing an electric power deficit due to low water levels at hydroelectric dams.

Summers were worst period for Pakistan people where in some areas load shedding of even 16 to 18 hours were witnessed but the winters were also worst of all with up 8 hours of load shedding. Prices of electricity were also kept increasing. Electricity shortages caused losses to industry, in turn causing many closures and loss of jobs for people of Pakistan.

The story of Pakistan's energy sector is symptomatic of virtually all sectors of the economy. Pakistan policy-makers have been remarkably adept in the articulating the overall objectives of energy policy within a national development context. the problem is not what the objective are but how they can be achieved .Overwhelming evidence from energy analyst points to be absence of coordinated policy formulation as a fundamental issue, While energy remains a corner stone of five years plan.

Shahid Javed Burkri have discussed in his article;

"there cannot be any doubt that Pakistan is currently faced with a serious economic crisis, one of the most serious in its history, the most glaring failure of the policy makers was in the area of energy where shortages of electricity and gas have seriously begun to hurt the peoples and damage the economy".

Pakistan is in the throes of an energy crisis, with Pakistanis now enduring about 12 hours of power cuts a day, a grueling schedule that is melting ice, stopping fans and enraging an already exhausted populace just as the blast furnace of summer gets started. In the Era between 2008 and 2009, power outages went up by 30 percent since then situation is even worse now. after the catastrophic floods of 2010, there are areas where daily power outages exceed 18 hours.

A key element in integrated energy planning, is strong political will, is the restructuring of policy institutions to reverse the unchecked fragmentation that has occurred over the years, In other words to consolidate policy institutions into a single ministry of energy The Consequence Of Energy shortage our GDP faced 2.5 percentage of decline.

Short Term Measures


Wind Energy
:-

With power needed immediately, wind turbines look suitable because they are relatively fast to install whereas dams and nuclear plants take five to six years to complete and thermal power plants need two years at least. Wind power can play a big part of solving Pakistan’s energy shortages, and now that comprehensive wind maps already been researched in the country.

Private Power Plant:
-

The private sector should be allowed to set up power plants with their own equity and loans based on project feasibility with the government’s role limited to determining a fair price of power through an independent commission of representatives of the government, citizens, industry, power producers and experts by consensus.

Long Term Measures

Natural Resources:-Pakistan has estimated as the world's third-largest known coal reserves(Thar Coal) of 33.0 trillion tons in the south-eastern part of the country The answer to long term solution of power crisis in Pakistan lies in using local coal for power generation. The electricity production from coal is also cheaper than thermal generation as 2 percent usage of Thar coal could produce 20,000 Megawatts electricity.


Kalabagh Dam:- The Kalabagh Dam has become an absolute necessity for the country and delaying or abandoning its construction would be an invitation to a disaster. The water situation has become precarious and the provinces are going to each other throat over the issue of water supply. Pakistan is one of the unfortunate country which has not built a major dam in the last three decades. No wonder, today the country is facing a serious water crisis. Millions and millions of rupees have been spent on the feasibility report of the Dam, alterations have been made in the plan to remove the apprehensions of those who have opposed it for one reason or the other, but all these have proved futile exercises and the project has not moved an inch forward. The unnecessary politicization of the issue has been the major hurdle.

Telecommunication Industry In Pakistan

Pakistan is the world’s third fastest growing telecommunications market, adding on an average two million cellular subscribers per month, following India which is the world’s fastest growing mobile services market, adding on an average more than 8 million subscribers per month. The telecom infrastructure in Pakistan is improving dramatically with foreign and domestic investments in the fixed-line and mobile networks.

In the mobile cellular sector, a significant change took place in May 2001 When it is followed by award to licenses to Telenor and Warid in 2005. Mobile cellular subscriber-base grew rapidly since the entry of Telenor in March 2005 and Warid Telecom in May 2005. In a short span of three years,the mobile SIMs/ 100 people increased seven times from 7.9% in June 2005 to 54.7% as of June 2008. Telenor’s subscriber-base rose to 18.12 million to become the second cellular operator following Mobilink GSM, and overtaking Ufone. Warid’s subscriber-base also grew beyond million. This is a remarkable growth. The competition offered by the new entrants brought the
tariffs down, making it more affordable for the people to subscribe to mobile telephony.


Today network coverage is available to almost 90% of the total population. Tariffs have been driven down to one of the lowest levels in the world. Driven by lowest tariffs, maximum coverage, and relatively better quality the Pakistan mobile market has maintained rapid growth. The mobile market is now working on sustaining the boom that hit Pakistan 2 years back and is now working on adding Value Added Services to increase customer satisfaction. The telecom sector as a whole grew by 80% during the year 2007 compared to the average growth rate of 100% in the previous four years.

In line with other emerging markets, mergers and acquisitions have been taking place in Pakistan which also attracted foreign direct investment and made Pakistan one of fastest growing telecom market. There are no restrictions on foreign investment regarding movement of capital or remittance of profits and dividends.

During 2007 about US$1.5 billion worth of acquisitions were made in the telecom sector. In May 2007, China Mobile Ltd., a subsidiary of state-owned China Mobile Communications Corporation (CMCC), acquired 100% of Paktel for US$460 million and renamed it CMPak Ltd.CMCC plans to invest US$ 400 million in Pakistan to expand the CMPak networks.19 Orascom from Egypt has purchased the remaining 11.31% shares in Mobilink GSM from the local
partners for US$290 million, and now owns 100% of the firm. SingTel purchased 30% share ofnWarid Telecom for US$ 758 million. Oman Tel purchased 60% of World Call for US$ 193
million.

Warid Telecom in May 2005. Telenor’s subscriber base rose to 18.12 million to become the second cellular operator following Mobilink GSM, and overtaking Ufone. Warid also crossed the 15 million benchmark. This is a remarkable growth. PTCL won contracts to provide telecom services in the rural districts of Pishin, Dadu, and Mansehra and bags a majority of subsidy (48.76 %) granted

In October 2007, the USFCo signed a Pilot project Contract with Telenor to provide telecom related services in Malakand Division. In short span of three months, the USFCo signed another contract innJanuary 2008 with Mobilink GSM to provide services to the un-served villages of Sukkur division.And then in February 2008, it entered into contract with Warid Telecom to provide telephony and data services to the mass population in un-served areas of Dera Ghazi Khan division. Telenor won another contract to provide services in the district of Bahawalpur




Role Of Pakistan Telecommunication Authority:-

The Pakistan Telecommunication Authority is composed of three members appointed by the Federal Government for a term of four years. One of the members is nominated as the Chairman of the Authority, and is entrusted with the administrative powers. The functions of the Authority, among others, are to promote the availability of wide range of high quality, efficient, cost effective and competitive telecommunication services throughout Pakistan. The Authority is also responsible for safeguarding the interest of consumers, and for encouraging fair competition in the telecommunications sector.

PTA started rebalancing PTCL’s tariff. Prior to the privatization of the PTCL, it has an uneven tariff structure. It had higher tariffs for International Direct Dialing and Nation Wide Dialing, which could not be justified by the cost. With the impending opening up, in early 2004, of the fixed-line telephony to competition, the PTA rebalanced the tariffs for IDD and NWD, as it was feared that the new entrants would focus on more profitable segments (i.e., IDD and NWD) and will not invest in local loop services. In that case, PTCL would be burdened with the provision of local services at a loss. Thus in the year, 2001-02, the installation charges for fixed line were reduced from Rs 3690/- to Rs 1850/-, long distance call charges were reduced to 12 percent for international call, and 10.5 percent for NWD calls. The reduction in fixed line tariff was further linked to the adjustment in international settlement rates, and termination rates.

Agricultural Sector in Pakistan


Agriculture is central to economic growth and development in Pakistan. Being the dominant sector, it contributes 21.4 percent to GDP, employs 45percent of the country’s labor force and contributes in the growth of other sectors of the economy. In order to improve efficiency of this sector, it has been devolved to provinces to boast market oriented results. The previous federal ministry has been renamed as “National food security and research”. To improve efficiency

Pakistan has a rich and vast natural resource base, covering various ecological and climatic zones; hence the country has great potential for producing all types of food commodities. Agriculture has an important direct and indirect role in generating economic growth. The importance of agriculture to the economy is seen in three ways: first, it provides food to consumers and fibers for domestic industry; second, it is a source of scarce foreign exchange earnings; and third, it provides a market for industrial goods.
The total geographical area of Pakistan is 79.6 million hectares. About 27 percent of the area is currently under cultivation. Of this area, 80 percent is irrigated. In this regard, Pakistan has one of the highest proportions of irrigated cropped area in the world. The cultivable waste lands offering good possibilities of crop production amount to 8.9 million hectares. Growth in cropped area is very impressive: from 11.6 million hectares in 1947 to 22.6 million hectares in 1997.

Agriculture contributes about 24 percent of the gross domestic product (GDP) and employs 47 percent of the national employed labor force Agriculture still remains the major sector of the GDP composition. A major part of the economy depends on farming through production, processing and distribution of major agricultural commodities.While on the one hand, the sector is a primary supplier of raw materials to downstream industry, contributing substantially to Pakistan’s exports, on the other, it is a large market for industrial products such as fertilizer, pesticides, tractors and agricultural implements.

Despite its critical importance to growth, exports, incomes, and food security, the Agriculture sector has been suffering from secular decline Growth in the sector, particularly in the crop sub‐sector, has been falling for the past three decades. Productivity remains low, with yield gaps rising
Growth in the sector, particularly in the crop sub‐sector, has been falling for the past three decades. Productivity remains low, with yield gaps rising

There are two principal crop seasons in Pakistan, namely the "Kharif", the sowing season of which begins in April‐June and harvesting during October‐December; and the "Rabi", which begins in October‐December and ends in April‐May. Rice, sugarcane, cotton, maize, mong, mash, bajra and jowar are “Kharif" crops while wheat, gram, lentil (masoor), tobacco, rapeseed, barley and mustard are "Rabi" crops. Major crops, such as, wheat, rice, cotton and sugarcane account for 82.0 percent of the value added in the major crops. The value added in major crops accounts for 32.8 percent of the value added in overall agriculture. Thus, the four major crops (wheat, rice, cotton,
and sugarcane), on average, contribute 33.1 percent to the value added in overall agriculture and 7.1 percent to GDP. The minor crops account for 11.1 percent of the value added in overall agriculture. Livestock contributes 53.2 percent to agricultural


Measures Taken Increase to Productivity.


Mechanization:-

A demographic change towards urbanization reduces the size of rural workforce, agriculture will also need to adopt new forms of mechanization and shift to land use intensification, with all of its connotations. High agricultural production assures food security and agriculture surpluses for export at competitive prices require efficient development and utilization of agricultural resources. Cost effectiveness in the production of various crops brings built‐in competitive edge to low productivity attributed farmers. Farm operations being time specific, demand precision to optimize the efficiencies of agricultural input for higher productivity. The future changes of free market economy and faster globalization have further necessitated modernization of agricultural machinery through transfer of latest, efficient and cost effective technologies to the farming community. Efficient use of scarce agriculture resources and accelerated agricultural mechanization are, therefore, vital to meet the challenges of future scenario that need a comprehensive strategic loaning for future. Plant

Protection :-

Plant protection is an important agriculture input as it effectively contributes in achieving higher production by saving it from ravages of insect and disease pests, Crop protection technologies allow producers to increase crop yields and efficiency of food production processes. Up to 40 percent of the world's potential crop production is already lost annually because of the effects of weeds, pests and diseases. These crop losses would be doubled if existing pesticide uses were abandoned. Because the use of pesticides improves crop yields, crop protection technologies
also impact the cost of food. Without crop protection chemicals, food production would decline, many fruits and vegetables would be in short supply and prices would rise. Helping to keep food prices in check for the consumer is another large benefit of pesticides.

Forestry :-


Forests are crucial for the well being of humanity. They provide foundations of life on earth through ecological functions, by regulating the climate and water resources and by serving as habitats for plants and animals. Forests also furnish a wide range of essential goods such as wood, food fodder and medicines in addition to opportunities for recreation, and other services. Forests are under pressure for expanding human and livestock populations with frequently leads to conversion or degradations of forests into unsustainable forms of land use.When forests are lost or severely degraded, their capacity to function as regulators of the environment is also lost, increasing floods and erosion hazards, reducing soil fertility and
contributing to the loss of plant and animal life.

Agricultural Credit:-



In order to cope with the increasing demand for agricultural credit, institutional credit to farmers is being provided through Zarai Taraqiati Bank Limited, Punjab Provincial Cooperative Bank Limited, five big Commercial Banks, and Domestic Private Banks. Adequate availability and access to
institutional credit is essential for accelerating the pace of agricultural development and ensuring Food Security in the country. In order to excel new loans and packages should be introduced for farmers.


Livestock :-

The overall thrust of Government livestock policy is to foster private sector‐led development with public sector providing enabling environment through policy interventions and play capacity building role for improved livestock husbandry practices. Livestock plays an important role in the economy of the country. Livestock sector contributed approximately 53.2 percent of the agriculture value added and 11.4 percent to national GDP in Pakistan in some past years.The population growth, increase in per capita income and export revenue is fueling the demand of livestock and livestock products. In order to speed up the pace of development in livestock sector, The Ministry of Livestock & Dairy Development was created as a part of Reform Agenda and political commitment of present Government to improve service delivery, reduce poverty, achieve sustainable economic growth and expand opportunities to address the needs of livestock rural
farmers and to protect the livelihood concerns of rural community. The major products of livestock are milk and meat production.


Poultry:-Poultry sector is one of the organized and vibrant segments of agriculture industry of Pakistan. This sector generates employment and income for about 1.5 million people. Poultry meat contributes 23.8 percent of the total meat production in the country .Poultry Development Policy visions sustainable supply of wholesome poultry meat; eggs and value added products to the local and international markets at competitive prices and aimed at facilitating and support private sector‐led development for sustainable poultry production. The strategy revolves around Improving regulatory framework; disease control and genetic improvement in rural
poultry; hi‐tech poultry production under environmentally controlled housing; processing and value addition; Improving bio‐security; need based research and development and farmers training & education. It envisages poultry sectors growth of 15‐20 percent per annum.


Mega Development Projects: The Government has substantially increased public sector investment and has initiated mega development project for strengthening Livestock services for improved disease diagnosis and control, milk and meat production, breed improvement, animal husbandry and management procedures in the country. The Ministry of Livestock & Dairy
Development is presently executing seven projects in Livestock sector at an estimated cost of Rs. 8.8 billion.


Fishers:-


Fishery plays an important role in Pakistan’s economy and is considered to be a source of livelihood for the coastal inhabitants. A part from marine fisheries, inland fisheries (based in river, lakes, ponds, dams etc.) is also very important activity through out the country. Fisheries share in GDP although very little but it adds substantially to the national income through export earnings. During the year 2008‐09, a total of 134,000 m. tons of fish and fishery products were exported earning US$ 236 million. Government of
Pakistan is taking a number of fruitful steps to improve fisheries sector which include strengthening of extension services, introduction of new fishing methodologies, increased production through aquaculture, development of value added products, enhancement of per capita consumption of fish, up‐gradation of socio‐economic conditions of the fishermen’s community. Marine Fisheries Department is executing two development projects i.e. the project “Stock assessment survey programmed in Pakistan through chartering Research vessel and capacity building of Marine Fisheries Department”, is aimed to charter a suitable vessel of conducting stock assessment resource surveys in the coastal and offshore waters of

Pakistan, including Exclusive Economic Zone. The project is also aimed to strengthen Marine Fisheries Department by capacity building to conduct resource survey and stock assessment on regular basis and to develop management strategy for the fish exploitation and utilization.

Industry in Pakistan


Manufacturing accounts for 13.2 % of gross domestic production and 13.8% of employed labor force. It is one of the most vibrant sectors of economy which is divided in to large scale manufacturing and small scale manufacturing. It has received a severe setback due to energy shortages and electricity shortfall. In rubber products group, motor tires and cycles tubes were the main contributors which managed to grow by 18.12 percent and 12.62 percent, respectively. The growth in iron & steel products was on account of growth recorded in H/CR sheets/strips/coils/plates 45.53 percent. Three steel plants were commissioned in Karachi
during 2012(One in H2-FY12 and two in H1-FY13) are joint ventures with Saudi Arabia, Japan and International Finance Corporation which also improved steel production in the country.

In petroleum refining, higher margins improved the cash flows of local refineries and in addition partial resolution of the circular debt situation also enabled the firms to import more crude oil and increase capacity utilization. Petroleum products growth mainly arrived from the production of LPG 25.72 percent, motor sprits 21.90 percent and furnace oil 19.83percent during the period under review. In non metallic mineral product, cement managed to grow by 6.08 percent because of timely release of public sector development funds during the period amounting to Rs. 183.2 billion, which stimulated the construction activities.

The food, beverages & tobacco and textile group which accounts about half of the Large Scale Manufacturing (LSM) remained modest during the Period under review. The items showed positive growth in food, beverages & tobacco includes soft Drinks 15.58 percent, juices, syrups & squashes 14.05 percent, cooking oil 14.75 percent and tea Blended 18.99 percent. Restaurant and fast food chains are flourishing in the country. The demand for dairy products, processed food and beverages has increased manifold thus brought a positive impact in food group. In textile groups, items registered positive growth includes cotton yarn 1.27 percent, cotton cloth 0.22 percent, knitting wool 14.89 percent and woolen & worsted cloth 2.20 percent.

The reason behind the negative growth of electronics is smuggling on large scale.TV , air conditioners , electric bulbs and automobiles like jeep busses , cars showed a negative growth
with respect to previous year. Agro based industries boasted the GDP because of heavy production which spurred to an incremental increase in industrial goods. Iron import has improved the manufacturing industry further. Except textile industry, all industries spurred manufacturing growth. Textile industry severe setback due to minimum production of cotton affected badly GDP. In order to increase its production, it needs specialized labor, large investment in machinery and developed technology. Apart from above mentioned facts energy short fall need to be reduced. The export ration of ready-made garments has increased also by 12%.Same is the case with towel ,canvas ,jute , woolen fabrics and art silk and synthetic weaving industry which tantamount sharp increase in prices of garment products.

Fertilizer is second consumer of gas after energy sector .On June 2012 gas pipelines had been closed of sui-Northern due to shortage of gas. This policy of gas supply is deteriorating the fertilizer industry of country which is resulting into low production, undue price hike, increase in imports and subsidy, depletion of foreign exchange reserves and erosion of investment. In 2012-13, the cement industry witnessed the continuation of high retention prices that helped cement companies to improve their margin. Pakistan is among top 20 leading producers and top 5 leading exporters of cement in the world. Pakistan cement is being exported to Afghanistan, South Africa, Iraq, India, Sri Lanka, Tanzania, Djibouti, Mozambique, Sudan and Kenya.
Pakistan’s textile industry is a major contributor to the national economy in terms of exports and employment. Pakistan holds the distinction of being the world’s 4th largest producer of cotton as well as the 3rd largest consumer in the world.

According to Pakistan Textile Journal, Pakistan is among top 10 textile exporters of the world. Textile export of world over is about $400 billion out of which China tops the list with present export of $55 billion, followed by Hong Kong $38 billion, Korea $35 billion, Taiwan $16 billion and Indonesia, India, Bangladesh and Pakistan $11billion each.Textile sector is considered as the backbone of the economy. On the other hand, it is facing tough competition in the international market due to increase in cost of production, which is making it less competitive than the neighboring countries India, Bangladesh & China.


The Textile industry in Pakistan is the largest manufacturing industry in Pakistan. It has traditionally, after agriculture, been the only industry that has generated huge employment for both skilled and unskilled labor. The textile industry continues to be the second largest employment generating sector in Pakistan. Pakistan is the 8th largest exporter of textile products in Asia. This sector contributes 9.5% to the GDP and provides employment to about 15 million people or roughly 30% of the 49 million workforce of the country. Pakistan is the 4th largest producer of cotton with the third largest spinning capacity in Asia after China and India, and contributes 5% to the global spinning capacity


The Textile Industry is dominated by Punjab. 3% of United States imports regarding clothing and other form of textiles is covered by Pakistan
Textile exports in 1999 were $5.2 billion and rose to become $10.5 billion by 2007. Textile exports managed to increase at a very decent growth of 16% in 2006. In the period July 2007 – June 2008, textile exports were US$10.62 billion. Textile exports share in total export of Pakistan has declined from 67% in 1997 to 55% in 2008, as exports of other textile sectors grew.
The global recession which has hit the global textile really hard is not the only cause for concern. Serious internal issues also affected Pakistan's textile industry very badly. The high cost of production resulting from an instant rise in the energy costs has been the primary cause of concern for the industry. Depreciation of Pakistani rupee during last year has significantly raised the cost of imported inputs. Furthermore, double digit inflation and energy crises have affected theoverall textile sector.

Benazir Bhutto’s assassination followed by unstable law and order situations. Moving ahead in 2008 the textile sector showed record negative growth due to financial church in global economy resulting in slow down in economy growth chased by soaring oil, food and other commodity prices, softening of external demand and turmoil in the international financial market. The economy is also going through the most terrible energy crisis affecting the performance of the textile industry

RESAONS FOR DECLINE IN GROWTH



Main reasons of crisis in textile industry in Pakistan are as follows:

Lack of Research & development (R&D):-

The lack of research & development (R&D) in the cotton sector of Pakistan has resulted in low quality of cotton in comparison to rest of Asia. Because of the subsequent low profitability in cotton crops, farmers are shifting to other cash crops, such as sugar cane.

Lack of modernize equipment:-

The textile industry has obsolete equipment and machinery except few major producers. The inability to timely modernize the equipment and machinery has led to the decline of Pakistani textile competitiveness. Due to obsolete technology the cost of production is higher in Pakistan as compared to other countries like India, Bangladesh & China.

Energy crisis:-

As a consequence of load shedding the textile production capacity of various subsections been reduced. The representatives of the all textile associations presented their serious concerns on the huge losses being incurred due to electricity & gas load
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