Poverty reduced by 2 percent in two years, claims Shaukat

RECORDER REPORT

ISLAMABD (June 02 2004): Finance Minister Shaukat Aziz said poverty has reduced by two percent during the last two years from 2000-01 figure of 32.5 percent adding that investment to GDP ratio would reach 18 percent during 2003-04 from 16.5percent of 2002-03.

The minister was optimistic on finalisation of NFC formula before the coming budget.

Addressing a seminar recently, he listed eight future challenges including improving global image and quality governance, attaining higher GDP growth and creating jobs, sail through tough law and order situation, maintaining fiscal stability, correcting social sector indicators and developing better infrastructure. He emphasised the eighth challenge saying, "implementation, implementation and implementation".

He said that additional money went into agriculture sector is Rs 60-70 billion due to cotton and wheat crop.

He also said that an independent statistical authority would be set up to improve quality and credibility of data. The groundwork for such an organisation is almost complete and a new set up would be created for improving quality data provision. After the budget announcement new Household Income Expenditure Survey (HIES) would actually measure the poverty rate.

The consolidated poverty spending (including provinces) in 2004-05 would be Rs 278 billion. In 2003-04 these were Rs 238 billion.

The minister said that the budget would move the economy ahead creating economic activity. It would create opportunities and improve investment. He gave Malaysian example, where Mahatair took 18 years in putting the country on development track and reforms are still going on.

The per capita income touched $ 650 million during 2003-04 from $ 460 of 2002-03.

Responding to some comments he said that India had not achieved fiscal stability and comparison between Pakistan and India is not understandable.

He said that provincial debt is high and that was the loans from National Savings, which entailed higher rates and with the passage of time the effect of such debts would reduce.

He said that water and power and agri-finance would be given due importance in the budget. The banking sector farm loans excluding Zarai Taraqiyati Bank Limited (ZTBL) have surpassed the loans given by ZTBL.

Copyright Business Recorder, 2004

Commission on Poverty Reduction and Employment set up

ISLAMABAD (June 04 2004): Prime Minister's Commission on Poverty Reduction and Employment has been set up to suggest measures and programmes to reduce poverty and generate employment opportunities in short- and long-term framework.

The commission will also co-ordinate, review, design and monitor implementation of poverty reduction and employment generation activities in the country.

Poverty reduction and job creation has been the key objective of the present government for which a number of measures have been taken and various projects were initiated.

Prime Minister Zafarullah Jamali had constituted a task force under the Privatisation and Investment Minister to suggest initiatives for reducing poverty and creating jobs in the country.

The task force on Thursday presented its recommendations before the prime minister. With a view to implementing its recommendations and promoting the cause of employment generation and combating poverty, the prime minister approved setting up a commission.

The commission will review and co-ordinate the existing work relating to poverty reduction initiative of the government. It will also devise future strategy to combat poverty and suggest long- and short-term measures to address the problem faced by the poor.

The commission would also identify such projects, which could generate economic activity to create more jobs and reduce poverty.

Jamali appreciated the work done by the task force in making recommendations for addressing the problems of poverty and unemployment.

He said the government is committed to address the issue and full support would be given to the commission to undertake its work, while making review of the implementation of various programmes.

He said increased allocation for the next year's PSDP (Rs 202 billion) and launching mega projects would not only create employment opportunities, but would also generate economic activity.

It would also provide enabling environment for private sector investment and result into increased GDP growth rate.

Copyright Associated Press of Pakistan, 2004

GDP may increase by 9.4pc in 2004-05

By Khaleeq Kiani

ISLAMABAD, June 3: Pakistan's total consumption for next year (2004-05) is projected at $85.6 billion (Rs4,944.3 billion), up by around 10 per cent from current year's $77.86 billion (Rs4,495.8 billion).

Official estimates suggest the gross domestic product (GDP) at current market price would increase by 9.4 per cent to $104.4 billion (Rs6,029.4 billion) from current year's projected GDP of $94.5 billion (Rs5,458.1 billion).

Net factor income from abroad is expected to reduce by a whopping 38 per cent to $1.264 billion (Rs73 billion) against current year's estimates of $2.05 billion (Rs118.2 billion).

As such, the gross national product (GNP) has been forecast to increase by 9.4 per cent to $105.69 billion (Rs6,102.7 billion) against current year's $96.576 billion (Rs5,576.3 billion).

Similarly, total resources/uses are estimated to increase by 11.4 per cent to $105.764 billion (Rs6,106.7 billion) during 2004-05 compared with $94.95 billion (Rs5,482.7 billion) in 2003-04.

These estimates are based on constant factor cost of 1999-2000 after inclusion of new sectors like information technology and mobile telecom, mineral water, etc. The total investment for the year 2004-05 is projected to go up by 17.8 per cent compared with increase rate of 22.3 per cent in 2003-04.

The total investment is expected to be around Rs1,162.4 billion in 2004-05 compared with Rs986.9 billion during the current year. Of this, fixed investment is projected at Rs1,056.5 billion as against Rs892.5 billion during the current year.

Public investment would amount to Rs312.9 billion next year compared with Rs253.3 billion in current year. Private investment is projected at Rs743.6 billion next year compared with Rs639.2 billion this year.

SAVINGS: National savings are projected at Rs1,158.4 billion compared with current year's Rs1,080.5 billion. However, it would reduce to 19.2 per cent of GDP next year compared with 19.8 of GDP during the current year.

In percentage terms, the total investment is projected at 19.3 per cent of GDP in 2004-05 compared with 18.1 per cent during the current year. Fixed investment is also projected at 17.5 per cent of GDP next year compared with 16.4 per cent of GDP this year.

Public and private investments are projected at 5.2 per cent and 12.3 per cent next year against 4.6 per cent and 11.7 per cent of GDP during current year. Inflation as measured by consumer price indicator is estimated at 4.5 per cent next year compared with revised estimates of 4.1 per cent during the current year.


High commission calls for increasing UK-Pak trade ties

RECORDER REPORT

SIALKOT (June 06 2004): British High Commissioner to Pakistan Mark Lyall Grant has stressed the need of further accelerating the trade volume between his country and Pakistan.

"Both UK and Pakistan are enjoying healthy bilateral trade ties and also cordial political relations and with the passage of time these ties would be further strengthened," he said.

He expressed these views during a meeting with president Sialkot Chamber of Commerce and Industry Tahir Majid Kapur during his visit to Sialkot.

According to a press release of Sialkot Chamber of Commerce and Industry issued here on Saturday, the High Commissioner urged the businessmen of Sialkot that they should focus their attention on bringing big boom in bilateral trade of the two countries.

The envoy lauded the valuable services of the SCCI for the promotion of trade between the two countries.

"Sialkot Chamber of Commerce and Industry is the most active chamber of Pakistan and rendering highly creditable services for strengthening the national economy and fulfilling the social responsibilities," remarked the High Commissioner.

JOINT VENTURES: He said that the businessmen of this export-oriented city and hub of cottage industry have great potential for setting up joint ventures with their British counterparts.

On this occasion SCCI president Tahir Majid Kapur said: "UK is one of the economic powers of the world and has one of the largest economies in the European Union." He said that Pakistan has close economic ties with the United Kingdom and these relations exist in several socio-economic fields.

"However, the needs always remain for efforts to promote bilateral trade and in this regard, Sialkot has great potential."

He pointed out that the two-way trade between UK and Pakistan has shown encouraging results.

"The British companies can establish joint ventures and business collaboration with Sialkot-based companies in the field of sports goods, surgical instruments, leather goods and information technology," he said.

Copyright Business Recorder, 2004

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Free economy status: 'Pakistan response to China positive'

BEIJING (June 08 2004): China received a positive response from Pakistan for a free economy status, said a senior official in Beijing Ministry of Commerce, Wang Shichun.

He said: "We discussed the matter with the Pakistani officials and received a positive response, adding the central government's efforts on the issue had started to reap dividends."

Wang said China also got a positive response from India, Egypt and South Africa. New Zealand, Singapore and Malaysia had already granted market economy status to China, while Australia also promising to recognise the status before launching free trade agreement talks with China, he added.

He said the European Union (EU) was expected to give a tentative assessment on the issue by the end of this month, adding the United States had agreed to set up a working group with China to have further discussions on the issue.

The US hearing was taking place to identify relevant topics and issues for discussion by the China-US working group on market economy status. Chinese officials and companies have called at the hearing for fairer treatment in anti-dumping rulings.

Wang said China's status as a non-market economy allowed the US Commerce Department to look at production costs in other countries, such as Singapore, when it evaluated whether imports from China were unfairly priced or "dumped" within the US market where labour costs were higher.

Wang said that the countries must meet six criterions under the US Tariff Act 1930 to be designated as market economies, among them, labour issues and currency rates would be the two most difficult points and take most energy to solve.

Anti-dumping investigations were widely viewed by the US industry as the most effective way of restricting imports from China, he added.

Copyright Associated Press of Pakistan, 2004

PA passes children’s protection bill

By Qamar Jabbar

LAHORE: The Punjab Assembly unanimously adopted the Punjab Destitute and Neglected Children Bill 2004 on Monday with an amendment to Clause 6 of the bill proposed by the opposition.

Deputy Opposition Leader Rana Sanaullah suggested the amendment, which altered the composition of the board of governors of the Child Protection and Welfare Bureau. He said the board should contain three members of the Punjab Assembly, two from the treasury nominated by the speaker and one from the opposition nominated by the opposition leader. The house approved the amendment with a majority of votes. The opposition then withdrew its other amendments and allowed the bill to be adopted unanimously.

Punjab Law Minister Muhammad Basharrat Raja appreciated the opposition’s role in parliament, saying greater consensus between the opposition and the treasury would lead to positive legislation.

Opposition members Mr Sanaullah, Arshad Baggu and Rana Aftab Khan said the government should focus more on the enforcement of the law than the creation of legislation.

Mr Raja said the federal government had ratified the UN Convention on Children Rights in 1990 and so the country was under an international obligation to promulgate and enforce such a law.

With the approval of the bill, the government will now set up an organisation to be known as the Child Protection and Welfare Bureau. The bureau can set up and maintain child protection institutions anywhere in the province and reorganise any other institution to be a child protection institution whether established and maintained by a local government or a non-government organisation.

The bureau will have a board of governors headed by the chief minister and chaired by the minister or advisor to the provincial government on children’s rights. The home, social welfare, local government, population welfare, education, health, information, culture and youth affairs secretaries and the director general of the bureau will be the members of the board.

The bureau can establish or reorganise any association for the aftercare and rehabilitation of destitute and neglected children discharged from a child protection institution. The bureau can authorise officers to inspect, check and supervise child protection institutions to see whether their functioning is in accordance with the act. If a child protection institution is found acting in contravention of the act, the bureau can pass whatever order it deems fit for the proper management of the institution.

The bureau can appoint child protection officers. It will determine the eligibility for appointment, terms and conditions of service of these officers. The child protection officer may seek police assistance to help him in his duties. Station house officers must provide appropriate assistance whenever assistance is sought.

According to the act, the government may establish one or more courts for a local area. Until a court is established for a local area, the Lahore High Court can confer the powers of the court for a local area upon a sessions judge or an additional sessions judge.

If a child protection officer takes a destitute or neglected child into custody, he must produce him before the court within twenty-four hours. If the child’s ordinary place of residence is not within the jurisdiction of the court, it may direct that the child be kept in custody and be produced before a court having territorial jurisdiction over the place of residence of the child or deal with his custody in any other manner provided in the act.

According to the act, whoever employs children for the purpose of begging or causes a child to beg, guardians who connive at or encourage children to beg and whoever uses a child, connives at or encourages his employment for begging shall be punished with imprisonment of up to three years, a fine of up to Rs 50,000 or both.

Source

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Trade Policy 2004-05: Govt may privatise marketing arm of EPB to help boost exports

* EPB board likely to be set up

By Khalid Mustafa

ISLAMABAD: The federal government has decided to corporatise or privatise the marketing arm of the Export Promotion Bureau (EPB), as a part of efforts to re-structure the working of the EPB to help boost the country’s exports.

A senior government official told Daily Times that the government is expected to make a formal announcement in this regard in the forthcoming Trade Policy for the next fiscal year.

He said EPB officials in Karachi briefed Tasneem Noorani, the federal commerce secretary, on the proposal during his first visit to EPB on Monday.

The official said the marketing arm of EPB, which is called Supply Chain Management, would either be corporatised or privatised.

“If it is corporatised, then leading professionals would be hired from the corporate sector and they would be given the task in specific sector to market specific items with a view to enhance exports,” he said.

He said if the Supply Chain Management is to be privatised, then consultant firms would be asked to market various local products and added such consultant firms would be able to utilise EPB offices of this particular wing across the country.

The official said the EPB currently consists of 1) Geographical and Regional Management Division that holds exhibitions abroad, taking care of delegations coming in and going out of the country to enhance trade volume, 2) Supply Chain Management that markets products, 3) Administration, 4) Export Development Fund/Export Marketing Development Fund, 5) Skill Development Fund and Textile Directorate.

The official said the government has decided only to corporatise or privatise the Supply Chain Management and added that a final decision on the issue would be taken in consultation with Tariq Ikram, chairman EPB.

EBP board likely: The official said the government is also likely to constitute a board of the EPB, to be headed by the commerce minister and include the secretary commerce, chairman and vice chairman, and secretaries of all economic ministries.

“The EPB board would give policy guidelines under which the EPB would work,” he said.

The official said the government under the re-restructuring plan has also decided to extend more financial autonomy to the EPB since approvals of even small sums of money are required by the commerce ministry or the finance minsitry.

He said in the forthcoming Trade Policy the government is also going to announce the setting up of electronics and automobile parts clusters each in Karachi and Lahore.

RS122.90BN BUDGET FOR SINDH

Sindh Finance Minister Syed Sardar Ahmad presented in the provincial assembly last Wednesday a Rs122.90 billion budget for the year 2004-05, with an operational revenue deficit of Rs4.22 billion.
The budget shows revenue expenditure of Rs104.90 billion and a record development outlay of Rs20.80 billion, including Rs18 billion for ADP and Rs2.80 billion foreign and federal funded development programmes.
The minister estimated a total revenue of Rs100.68 billion for the fiscal year. This income includes federal transfers of Rs84.16 billion and collection of Rs16.51 billion from the provincial revenue sources


The deficit of Rs4.22 billion is further widened by Rs1.22 billion in the current capital account, pushing the total shortfall to Rs5.43 billion. The minister did not elaborate how the ambitious Rs18 billion ADP for the next fiscal year would be financed.

"Provincial contribution and funding of oversized Public Sector Development Programme (PSDP) will be subject to availability of the resources," the budget statement said.

In line with the decision of the federal government, Syed Sardar Ahmad announced an ad hoc relief of 15 per cent for the employees of the provincial government and ad hoc relief of 16 per cent for those who had retired before 1994 and eight per cent for other retired employees.

The minister spoke about the extreme constraints on Sindh which stemmed from an 'unfriendly' 1997 NFC award, the acute drought which reduced irrigated land in Sindh by over 40 per cent followed by rains which caused widespread damage to standing crops

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RS180 BILLION 'RELIEF BUDGET' FOR PUNJAB


Punjab Finance Minister Sardar Hasnain Bahadur Dareshek last Thursday presented in the provincial assembly a revenue budget of Rs180.021 billion for 2004-05. It indicates a revenue expenditure of Rs141.884 billion and a gross surplus of Rs38.14 billion.

He also announced a record annual development programme (ADP) of Rs43.440 billion which will be financed from the net revenue surplus (Rs34.655 billion) and foreign assistance of Rs8.785 billion.

The development outlay for the next year is more than double the development allocation of Rs21.59 billion for 2002-03. The percentage of the development budget in relation to the current expenditure is 30.6, compared to the budget estimates of 23.6 per cent, and revised estimates of 30 per cent for the outgoing year.

Though no new tax has been proposed, the minister presented a finance bill that reshuffles several existing taxes. Mr Dareshek describes at as a 'relief budget'. Finance Secretary Salman Siddique told reporters that changes in tax rates would result in an overall negative impact of Rs114 million on tax receipts.

Compared to current year's estimates of tax receipts of Rs15.773 billion and revised estimates of Rs19.592 billion, the tax revenue for the next year is estimated at Rs20.124 billion.

Mr Dareshek informed the house that the provincial cabinet had rejected a proposal to levy Rs200 per annum on tobacco vendors in its meeting held early in the morning to approve budget proposals because the government did not want to put any burden on small vendors.

The finance bill, however, extends the scope of professional tax to wholesalers who would be charged Rs1,000 per year. The total volume of the proposed revenue budget for 2004-05 is 16 per cent higher than the revised estimates of Rs155.560 billion for the current fiscal and 20.5 per cent greater than the budgetary estimates of Rs149.346 billion.


EXPATS SEND $3.47BN DURING 11 MONTHS

Expatriate Pakistanis sent back home $3.473 billion in eleven months to May 2004, according to data released by the State Bank on Wednesday. In a year-ago period they had sent $3.704 billion.

This $231 million or 6.2 per cent fall in workers remittances is quite nominal. But what is disturbing is the fact that remittances from the United Arab Emirates declined to $546 million in July-May 2003-04 from $770 million in July-May 2002-03.

This fall of 29 per cent or $224 million cannot be attributed solely to a decline in panic-transfers of money in the wake of September 11, 2001 terror attacks on the US has stopped. It can also not be attributed fully to the intensified checks imposed by the authorities on the outflow of foreign exchange from the UAE.

"What explains this big fall in the remittances from the UAE is that Pakistanis living there have restarted using unofficial channels of money transfer," said head of an exchange company who refused to be quoted.

The State Bank sources also confirmed this. They said that some of the exchange companies were also encouraging foreign exchange inflow through unofficial channels from the UAE.

The sources said two exchange companies were recently found mis-declaring the amount of foreign exchange they were bringing in from the UAE. It could not be learnt immediately what action the central bank has taken against them.

Executives of exchange companies say what encourages the UAE-based Pakistanis to use Hundi/Hawala for sending foreign exchange back home is not only a higher exchange rate but also the swift pace of delivery.

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LOAN SWAP TO SAVE RS10BN TO PUNJAB

The Punjab government's plan to swap its expensive cash development loan (CDL) stock with low-priced loans obtained from the international donors will result in a saving of Rs10 billion through reduced debt servicing costs each year from 2008.

In his budget speech, finance minister Sardar Hasnain Bahadur Dareshek said on Thursday that the savings from premature debt retirement would provide Punjab the much needed fiscal space for further increasing its annual development programme.

Punjab finance secretary Salman Siddique said after the presentation of the budget that the province had saved Rs900 million by returning Rs12 billion to the federal government during the current year.




MANUFACTURING SECTOR TO GROW BY 10.2PC

The government has projected the manufacturing sector to grow by 10.2 per cent, monetary expansion at 11.2 per cent and rate of inflation is estimated to rise to five per cent during the year 2004-05.

According to macroeconomic framework for the year 2004-05, the 10.2 per cent growth rate in manufacturing is envisioned to consolidate the higher growth rates achieved during the past two years.

Normally, the macroeconomic framework is released by the government along with budget documents but has been withheld this year for unknown reasons. The growth rate of manufacturing sector is premised on the growth of the large-scale manufacturing sector's growth of 12 per cent, small and medium manufacturing sector of 7.5 per cent and slaughtering growth of 3.0 per cent.

The automobiles (comprising jeeps, cars, tractors and motorcycles), petroleum products, chemicals, cement, cotton yarn, motor tyres, fertilizer and electronic items like refrigerators, TV sets and transformers would be the main growth industries.



DEVELOPMENT OUTLAY

Sindh has set total development outlay for 2004-05 at Rs20.805 billion, which is about 66 per cent higher over the current year's estimates of Rs12.757 billion.

Similarly, an ambitious Annual Development Plan (ADP) of Rs18 billion, which has been increased by around 100 per cent over the current year's revised estimates of Rs9.633 billion has been included in the deficit budget for fiscal 2004-05.

The Sindh Finance Minister Syed Sardar Ahmad who presented a revenue deficit budget for fiscal 2004-05 in the Sindh Assembly last Wednesday, said that total development outlay will include Rs18 billion ADP, Rs2.410 billion foreign project assistance and Rs395.537 million drought emergency relief assistance (DERA).




IMPORTED CARS TO ELIMINATE MENACE OF PREMIUM
The government did not intend to reduce the prices of local cars through the proposed duty reductions announced in the federal budget 2004-05 but wanted to overcome the problem of high premium, delays in delivery and short supplies.

Discussions with various ministers involved in formulating recommendations for the cabinet on duty reductions suggest the government has tried to improve the situation on supply side by providing an alternative in shape of imported cars so that the menace of premium is eliminated.

Since the government had no intention to reduce the prices of local cars because of revenue consideration, the duties on completely knocked-down (CKD) units were remained intact at 35 per cent, a senior official of the finance ministry said.



PAKISTAN STEEL EARNS

Pakistan Steel (PS) earned a net profit of over Rs6 billion in 2003-04, which is 500 per cent higher than the budgeted profit of Rs1 billion.


UNILEVER TO SELL EDIBLE OIL BUSINESS

Unilever Pakistan announced last week that the company board had decided to sell its edible oils business, subject to approval of its shareholders.

A notice issued by the company to the Karachi Stock Exchange said that the review process had been coordinated by the merchant bankers, Hong Kong Shanghai Banking Corporation.

The transaction would include the sale of Dalda brand and trademark by the parent company, Unilever Plc. "The sale does not include the Margarine business", the company clarified.

BAGGAGE RULES

The government has proposed amendments in the baggage rules to allow the returning overseas workers to bring along a number of additional electronic goods and jewellery.

Through the Customs Budgetary Notifications of 2004-05, the government amended the baggage rules to allow one VCD player, one watch, one mobile phone and personal jewellery.



RS202BN FOR DEVELOPMENT PROGRAMME

Finance Minister Shaukat Aziz unfolded a Public Sector Development Programme (PSDP) with a total outlay of Rs202 billion for the fiscal 2004-05, which is 31 per cent higher than the outgoing year.

As approved by the National Economic Council (NEC) in its meeting held on June 1, the overall PSDP outlay is broken up into federal PSDP and provincial PSDP with allocations of Rs148 billion and Rs54 billion, respectively.

PROVINCES TO RECEIVE 20PC MORE

The federal budget 2004-05 has projected Rs256.7 billion net transfers to the provinces compared to Rs213 billion during the current year, showing an increase of 20.5 per cent.

Of this amount, the provincial share from the net proceeds of the divisible pool has been estimated at Rs201 billion against current year's revised estimates of Rs176 billion.

HEALTH PROJECTS

The health sector allocation recorded a significant jump with enhanced funding of Rs6 billion proposed for fiscal year 2004-05 under the public sector development programme (PSDP), against Rs4.37 billion allocated in the current year.

REVENUE TARGET FIXED AT RS580BN

The government has fixed the revenue target for the year 2004-05 at Rs580 billion compared to Rs510.1 billion target set for the outgoing fiscal year, showing an increase of 13.7 per cent.

Official figures released in the budget 2004-05, have projected that Rs181.9 billion will be collected under the head of direct taxes during the next fiscal year against the target of Rs161.5 billion for the year 2003-04, indicating an increase of 12.6 per cent.

DUTIES ON MACHINERY CUT TO 5PC

The government has scaled down duties on all types of machinery to 5 per cent, reduced rates of customs duty on import of motor vehicles, exempted agriculture machinery from customs duty, reduced duty on raw materials, brought down duty on 10 smuggled prone items and levied 5 per cent customs duty on import of IT related products.

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Ecnec approves projects of Rs 83 billion

ISLAMABAD (July 28 2004): The Executive Committee on the National Economic Council (Ecnec), which met here on Tuesday, approved 17 projects worth Rs 83 billion for energy, health, industries, mass media, physical planning and housing, rural development, transport and communications, education and governance sectors. Finance Minister Shaukat Aziz chaired the meeting.

Major projects included Chashma Nuclear Power Project (Unit-II), 220Kv Grid Station at Khuzdar, Lowari Tunnel and access roads project, urban development and community projects for Punjab and NWFP and capacity building programme for civil servants.

The Ecnec also approved adjustments in some projects. The projects would have great impact on economic development and poverty alleviation by creating job opportunities.

The committee reviewed the development funds utilisation of federal government and provinces for 2003-04. It expressed satisfaction over the level of spending as 100 percent funds allocated for development programmes are expected to be utilised.

It also reviewed the progress on an earlier decision for mid-year review of public sector development programme (PSDP) and decided that the ministries/divisions concerned would immediately appoint independent project directors for all the ongoing projects, costing Rs 100 million.

It noted that the ministries where planning and monitoring cells already exist should strengthen these cells with adequate professional staff. Other ministries would establish cells with professional staff by August 31. The ministries/divisions, which have been given block allocations/releases, would establish separate project accounts and confirms it by August 31.

ENERGY SECTOR: The Ecnec approved installation of a Nuclear Power Plant (NPP) at Chashma, Mianwali with a gross capacity of 325 MW and net capacity of 300 MW at a total cost of Rs 51,046 million. It comprises a nuclear steam supply system (NSSS), a turbine generator set and associated auxiliary equipment, including electrical, mechanical and civil work. The project also envisages technology transfer, with the ultimate aim that Pakistan Atomic Energy Commission (PAEC) would be self-sufficient in all aspects of designing, installation, construction and operation of NPP. The project would be completed in seven years.

The committee approved a proposal for addition of third 500/220kV transformer at Rawat sub-station for upgradation of the existing 500/220kV Rawat sub-station by adding another transformer of 450 MVA capacity along with necessary protection equipment, line bays, etc. The project would cost Rs 953 million.

The Ecnec approved 220kV grid station at Khuzdar, 220kV at Dadu-Khuzdar double circuit transmission line, with a total amount of Rs 2,901 million for construction of 300km long, 220kV double circuit transmission line from Dadu to Khuzdar and a 220/132kV, 2x160 MVA transformers at Khuzdar Grid Station to meet the power demand in Khuzdar area of Quetta Electric Supply Company (Qesco) and to provide an alternative route for power supply from Dadu to Balochistan.

The project will provide Balochistan an alternative source of energy as presently it is getting electricity only from one line.

COMMUNICATIONS SECTOR: The Ecnec approved Lowari Tunnel and access roads project at a total cost of Rs 7,983.7 million. The scheme provides for the construction of a 8.6km long mini electric rail tunnel under the Lowari Pass, along with improvement of the access/approach roads measuring 39.09km, and establishment of portal facilities on both the northern and southern ends of the tunnel. The project addresses longstanding demand of the people of the area.

It also approved a plan for expansion and improvement of telecommunication facilities in the Northern Areas with a cost of Rs 668.996 million. The project constitutes the second phase of the programme for the extension and development of telecommunication facilities in the Northern Areas.

The second phase provides for the installation of 8,200 lines through expansion of 10 existing exchanges and the addition of 9,800 new lines through the establishment of 25 new exchanges and 25 new satellite stations, all of which will add up to 18,000 lines. Provision has also been made for addition of five new microwave links and expansion of the existing 168 satellite channels.

The Ecnec also approved a project for widening and remodelling of roads and intersections from Islamabad Airport to GOR-1 Rawalpindi with a total cost of Rs 333 million. The scheme, which is based on Rawalpindi Development Authority (RDA) study for identification of road infrastructure development east and west of Rawalpindi city, provides for widening and improvement of the 9.04km long road between Government Officers Residences 1 (GOR-1) and Islamabad Airport, thereby, improving the linkage of the southern side of Rawalpindi with Islamabad Airport.

PHYSICAL PLANNING AND HOUSING SECTOR: The Ecnec approved southern Punjab basic urban services project at a total cost of Rs 7,458.92 million for the development of municipal services in 425 low-income areas, provision of safe drinking water in seven towns, construction of 19 waste water treatment plants, relocation and construction of slaughter houses in 10 towns, incremental land development pilot project at Mian Channu and development of municipal management system in 21 town municipal administrations (TMAs). The project will benefit 311,741 people living in 22,971 households.

It also approved NWFP urban development project (NUDP)-revised PC-1 at a revised cost of Rs 1,921.216 million for construction of 48 infrastructure sub-projects of water supply, sanitation, streets and roads, public health information, hygienic education and community participation, for proper use of the project facilities, besides increased partnership among the communities and local governments; capacity building of tehsil municipal administrations and update base-maps of 24 towns for preparation of structure plans to guide future urban development.

GOVERNANCE: The Ecnec approved public sector capacity building project (PSCBP) with a total cost of Rs 3,538 million, including Rs 3,190 million equivalent to $61 million IDA credit. The project is for training of civil servants to upgrade their knowledge and skills.

HEALTH: The committee approved reproductive health project for Punjab at a total cost of Rs 239.845 million. The project aims at provision of reproductive health services to the under-served and marginalised population in 10 districts of the Punjab province to improve women's health, and contribute to poverty reduction. The Asian Development Bank (ADB) will finance 80 percent of the cost of the project. The Government of Punjab will contribute 20 percent to the project.

INDUSTRIAL SECTOR: The Ecnec also approved balancing and modernisation of workshop facilities at Pakistan Industrial Technical Assistance Centre (Pitac), Lahore at a cost of Rs 454.118 million for the transfer of plastic mould making technology through the supply of latest machinery and equipment.

It approved upgradation of training functions of plastics technology centre, Karachi at a cost of Rs 455 million to provide technological back-up support to the industries, particularly small and medium enterprises; dissemination of latest technological know-how and advance technology to the plastic industry; provide training to the engineers, managers, supervisors, technicians and workers to improve their capabilities/skills for better performance; and to provide testing services for quality control and production development, etc.

The Ecnec approved a project for enhancement of training capabilities of Construction Machinery Training Institute (CMIT), Islamabad, (Phase-III) with a cost of Rs 433.485 million for enhancement of the training capabilities.

MASS MEDIA: It also approved a project for setting up second television channel for education (Phase-III) at a total cost of Rs 722.330 million subject to the approval of a grant of Rs 698.695 million by JICA. The first two phases of the project have been completed and 31 transmitters had already been installed. Under Phase-III, it is proposed to provide one studio each in Karachi and Lahore television stations, and 13 transmitters will be added in the existing transmitter buildings of PTV-I after slight modifications.

RURAL DEVELOOPMENT/AREA DEVELOPMENT: The Ecnec approved rural development for NWFP community infrastructure programme at a cost of Rs 3,091.692 million. The aim of the programme is to improve the well being of low-income communities of NWFP by supporting investments in community development activities in basic small scale social and productive infrastructure, utilising proven and effective participatory approaches, strengthening the role and capabilities of newly devolved local government to extend institutional, financial and technical support to community citizen boards, mobilising community boards to increase their participation in development activities and by encouraging effective governance through improvements in operational budgetary and financial, monitoring and evaluation activities. The project is supported by the World Bank.

EDUCATION: The committee approved a project for MS/M.Phil. studies leading to Ph.D. scholarships in engineering, natural and basic sciences/humanities/social sciences for teachers of the universities with a cost of Rs 612.979 million.

IT & TELECOM SECTOR: The Ecnec approved Federal Government Data Centre and Intranet with a total cost of Rs 450.848 million. The project aims at providing the essential IT infrastructure at all the federal divisions and ministries to improve productivity and provide efficient services. LANs and secure internal communications will be provided to 22 divisions. Interconnectivity of all the federal government divisions through a central data centre is also planned to be completed under this project; this will constitute the federal government Intranet.

FLOOD CONTROL: The committee approved a proposal for release of funds for flood protection projects in two instalments to the provinces. The objective is that plans to curtail the damage caused by floods are implemented in a better manner. Provinces will also increase O&M.

Ministers of water and power, communications, education, privatisation, minister of state for environment, Planning Commission deputy chairman, provincial finance and planning minister and high officials of federal and provincial governments attended the meeting. :

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http://www.jang-group.com/thenews/index.html

US offers investment treaty to Pakistan

By Nadeem Malik

ISLAMABAD: The United States has offered Pakistan a bilateral investment treaty, provided the country enforces intellectual property rights, anti-money laundering law and creates conducive regulatory environment, says Alan P Larson, US Under Secretary of State for Economic, Business and Agricultural Affairs.

In a press talk here, Larson, who is also the key economic adviser to US Secretary of State Colin Powell, said he was here to put the fishing touches on the economic assistance component, which was promised by US President George W Bush at Camp David. Half of the $3 billion five-year package is for economic support and the rest for defence. "The Congress would vote for this money considering that Pakistan is a strong partner in the fight against terrorism, continue to promote regional peace and stability and continue on the path of democracy," he said. He said these are part of the expectations that both sides have while going into sustained assistance relationship.

He said one of his primary focuses of the visit is to explore possibilities of promoting the investment relations. Foreign Direct Investment in Pakistan increased to about $950 million last year that includes $238.4 million US investment.

Similarly, remittances sent by overseas Pakistanis from the United States totalled $1.23 billion out of $3.9 billion received during 2003-04. "The investment could go up by five to 10 times over time, if there is a strong Intellectual Property Rights (IPR) law, which is enforced very strongly," Larson said. He said he had raised the issue of IPRs with the government, which was very important to attract high-technology investment in knowledge-based industries to create high value jobs. The government has passed certain laws on the issue of intellectual property rights, but regulations are still being formulated. "I am encouraging the government to adopt strongest possible regulations, including measures covering the optical disk piracy, and backed up by strong enforcement."

Larson said a number of US businesses he spoke to see scope of expanding their presence in Pakistan. He said great potential in the Information Technology and pharmaceutical sectors, provided the appropriate laws are enforced. He also highlighted possibilities of investment in the infrastructure sector like electric power generation and privatisation.

The United States has already signed a Trade and Investment Framework Agreement (TIFA) with Pakistan, which basically provides a forum to discuss issues and suggest possible actions to promote trade and investment between the two countries. Larson said that the next meeting of the TIFA is due later this month in Washington. "We have been exploring the possibilities of negotiating a bilateral investment treaty to provide reciprocal protection to the investment," Larson said. He said the two sides are also exploring ways to get more engagement of the US EXIM Bank and OPIC in supporting specific investment opportunities. He said the two sides are working on a whole range of programmes to support the thrust of a private sector-led growth to reach the next level of economic accomplishment.

He said two countries have been exchanging information on respective models of an investment treaty, which is the first step. He mentioned many technical level issues, which need to be clearly defined before formalization of an agreement. Another issue that needs to be resolved, he said, is the specific terms and arrangement of the third party arbitration to resolve any possible business dispute.

He said the United States is the largest investment partner of Pakistan. He observed that direction of policies is right but there is a need to intensify second-generation reforms to address the structural problems and microeconomic issues. In this regard, Larson highlighted six key areas, including: IPR protection; Privatisation of the state owned corporations; addressing regulatory issues affecting small businesses; addressing high tariffs, like on packaging; laws to make it possible to have investment in the infrastructure, like electric power; and anti-money laundering law.

"I have reiterated today that passage of a strong Anti-Money Laundering Law (AML) is a very important element of the legislative programme," Larson said. He maintained that AML contributes in the war against terrorism, and in a way help business and investment climate. "There are links that connect the money laundering, terrorist activity and narcotics trafficking."

Larson said that his visit is meant to reaffirm US support for Pakistan as valued partner and a frontline ally. He appreciated the economic performance of Pakistan, a GDP growth rate of higher than six percent and strong export momentum. He said Pakistan could really become an export powerhouse once regional economies also grow. "I am here to discuss and deepen our economic cooperation." He observed that Pakistan has seen extraordinary progress in stabilizing its economy, but the best is yet to come, which he said would come through regional cooperation.

On the issue of rising inflation, he said this is something where all countries would need to watch very closely. However, he hoped that international fuel oil prices would continue to moderate to take steam out of the rising prices.

Regarding US travel advisory against Pakistan, he said his frequent visits to Pakistan show that it was important to come and visit Pakistan and they also reflect that it is possible to come and visit. "We just encourage our business executives to take appropriate care, but we are not telling them against visiting Pakistan," he said.

Larson said the US has updated its travel advisory relating to Pakistan to the positive direction, and added that it is continuously under review. Larson also announced that Pakistan has not asked for more debt write offs. "We have been focusing on our assistance dialogue to have more growth and investment."

Regarding the election of Shaukat Aziz as prime minister, Larson said the government has accomplished a great deal over the last few years. "I do feel that the new prime minister is working hard with his cabinet colleagues to establish a result-oriented government; tries to set goals; holds himself accountable; and is interested to create an environment where private sector could play its role to create new jobs."

He maintained that the US support for Pakistan is not about one man, but it is about the shared interests that the two countries have about the cooperation that two sides have been able to forge like economic cooperation, global war on terrorism, creating regional peace and security.

APP adds: US Under Secretary of State for Economic, Business and Agriculture Affairs Alan Larson called on Prime Minister Shaukat Aziz at the Prime Minister’s house, here on Monday to discuss ongoing economic relationship.

They also discussed $3.0 billion US economic package and funds for defence cooperation, education, health and social sector. The prime minister appreciated the ongoing economic support from the US and said that funds would be utilised in health, education and services sectors.

He said the government is getting ready for second-generation reforms, which cover a broad spectrum that include tax, education, administrative and legal reforms to ensure good governance. Shaukat said economic growth is expected to exceed the target of 6.6 per cent and Pakistan expects better future with emergence of strong middle-class and a gradual reduction in level of poverty.

Larson appreciated the improvement in macro-level economy and assured continued assistance from the US to uplift Pakistan’s economy. He said $3.0 billion US package for five years is a manifestation of the US government’s commitment for economic growth in Pakistan. The prime minister also discussed the subject of market access for Pakistani goods and need for increased investment from the US to Pakistan.

He said foreign direct investment has been increased in Pakistan, particularly in Oil and Gas, telecommunication, services and manufacturing sectors where more than 500 companies have been planning to invest in Pakistan. The prime minister said the private sectors of the two countries need to become closer to get full benefit from the economic potential of the two countries.

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ISLAMABAD, Nov 19 (APP): Following are the

highlights of Prime Minister Shaukat Aziz's address to

the nation;

- calls for having a long-term vision and a resolve

to overcome all obstacles on way to success.

- "Pakistan is not made for a privileged class."

- Pakistan can achieve 8 to 10 per cent growth rate

a year by adopting Islamic principles of freedom,

equality and justice.

- Urges political stability and continuity of

policies to ensure economic stability.

- Federal government to consult provinces with open

heart on the National Finance Commission Award,

distribution of water from major dams and mega projects

of water reservoirs.

- President Musharraf's vision of "enlightened

moderation" best way to confront challenges facing

Muslim Ummah.

- Pakistan's nuclear and missile program to continue

- Nuclear program is in safe hands.

- Pakistan to take forward process of composite

dialogue with India to find a lasting and just solution

to Kashmir dispute.

- Historical friendship with China to grow.

- Performance of the police to be improved and will

be equipped with better weapons, mobility and resources

for welfare of Police officials.

- "Any civilized society cannot progress unless the

life and property of the people are fully protected." -

- Common man can take action if a wrong FIR is

registered.

- Any police employee cannot arrest any citizen,

without consent of senior police officials

- Police official conducting investigation with

malafide intentions will have to face the law.

- Changes being brought into the justice system with

simplified procedures.

- Cases cannot be filed in a court of law, unless

all documents are complete.

- Stay order cannot be given unilaterally and views

of the other side have to be heard.

- Number of judges to be increased, with enhanced

salaries and benefits

- Federal Commercial Court to deal with cases

regarding business, investment, federal taxes and other

financial matters at Islamabad.

- Laws being improved to facilitate release of women

on bail.

- Sectors with chances of high growth include small

and medium industry, information and telecommunication

technology, housing and construction, oil, natural gas

and minerals.

- New seed to be introduced to improve yield of

crops. - No bank can take action against a poor farmer if

he cannot return his loan.

- Lining of water courses to complete in five years.
- 250 veterinary doctors to be inducted to provide

free medical treatment.

- Vacancies in government offices to be filled

- Khushal Pakistan programme being launched again

- Crash programme for technical and vocational

training to impart skills to 300,000 unskilled people

- Micro credit scheme to increase its outreach to

3.2 million families.

- Government to provide guarantee to banks for SME

sector and loans worth Rs six billion to be provided.

- Government to take strict action against those

involved in stockpiling of goods.

- Around 800,000 people in far off areas would be

educated through adult education in five years.

- Federal Educational institutions to provide free

education till matriculation.

LINK APP.COM.PK

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Govt alive to masses problems:Musharraf

Inaugurates Makran Coastal Highway
Says road to speed up Balochistan uplift

Anti-state elements will be crushed

Ormara (Balochistan)—President General Pervez Musharraf said Thursday that completion of Makran Coastal Highway would speed up development of Balochistan and also contribute significantly to the economic well-being of the country.

Inaugurating the Lyari-Gwadar section of Makran Coastal Highway at Ormara, the President said the coastal and other highways leading to the Iranian and Afghan borders would increase Pakistan’s trade and usher in a new era of economic development in the region. “Trade and commerce will flourish and immense job opportunities will be created, leading to a revolutionary improvement in the socio-economic lives of people,” he stated.

Referring to a series of mega development projects launched in Balochistan, the President said the Government has allocated unprecedented funds for the province to alleviate a sense of deprivation.

The Lyari-Gwadar section of the project has been completed in a record time of three months at a cost of Rs 10 billion.

The 532 km long Makran Coastal Highway will link the under construction Gwadar deep seaport with other parts of the country, acting as a vital means of transportation and opening up new economic opportunities for the local populace.
President Musharraf said the Government is fully alive to the problems of people and wants to resolve them.

Giving an example of one of the development projects for the people of Balochistan, President Musharraf said Rs 15 billion have been spent on the construction of Makran Coastal Highway.

Similarly Mirani Dam was being constructed at a cost of Rs 6 billion to provide water supply to people and irrigate 33,000 acres of land, he said while referring to his visit Thursday morning.

He said that these projects will change the destiny of the people and bring in prosperity for the people of Balochistan.

The Presdient sought support of local populace for these projects so that they are completed and asked them that they should not pay heed to the misguided campaign.

These projects, he underlined, will not only play an important role in the progress of people of Balochistan, but also of the country. These projects will generate job opportunities and boost agriculture, fisheries, industrialisation as well as tourism in the area.

President Pervez Musharraf said Gwadar deep sea port and Makran Coastal Highway will also provide trade connection to Afghanistan, Iran, central Asian Countries as well as China, increasing Pakistan’s trade and ushering in a new era of progress in the region.

In addition, he said the western Chinese province can also use these communication facilities for international trade via Karakoram Highway.

Pervez Musharraf said these projects will be helpful in poverty alleviation.

The Gwadar Port has emerged on the world map and international media is highlighting its importance in view of expanding global trade. The common man, he said, will benefit greatly from the fruits of these projects in next four to five years and one must plan for long term. He said he was proud to inaugurate this project as the nation was dreaming for its completion.

The President asked Balochistan Chief Minister Jam Yousuf to encourage industrialisation, fish and shrimp farming and tourism in the area.

Federal Communications Minister Shamim Siddiqui in his welcome address said the project was completed with local expertise and most of the work was executed by the Frontier Works Organization (FWO).

He said the two-way single carriage Coastal Highway was completed before time while the extended section from Gwadar to Gabd (Gabd) will begin soon to connect Makran Coastal Highway to Iran.

The work on the project started in July 2000.
Meanwhile, President Pervez Musharraf on Thursday categorically announced that anti state elements involved in subversive activities and trying to sabotage the peaceful atmosphere in the country, will be crushed.

Talking to newsmen soon after attending a briefing by Chairman WAPDA Tariq Hameed on under construction Mirani Dam, he said that the recent acts of terrorism which took place in Balochistan, are being investigated thoroughly by the law enforcing agencies and efforts are being made to collect more information in this regard.

He said that government has traced some clues to the persons involved in anti-state activities.

Musharraf warned such elements to desist from their anti-state activities otherwise these unscrupulous elements serving the interest of their masters will be taken to task.

President said that despite the opposition by certain quarters, new dams will be built soon to meet the water and power needs in the country.

He said he will tour the NWFP and Sindh shortly to form public opinion regarding the utility of dams. He said he will remove the apprehensions and dispel the doubts the people of these provinces have on mega water project.

The President said that cabinet members, Members of National and Provincial Assemblies will also play their vital role to create consensus.

Responding to a question regarding the feasibility report of the proposed dam, the President said that parliamentary committee has submitted its report to government while report of technical committee is still awaited.

Musharraf said new dam will be constructed in the larger national interest and to meet the agricultural, power and water needs.

In response to another question regarding the time frame of the date of announcement of new dam, President Pervez Musharraf said Kalabagh Dam had already been delayed for quite a long time, “we will take decision on new dam in near future.”

Pervez Musharraf said that a number of mega projects costing billions of rupees are being executed in different sectors in all provinces simultaneously.

After completion they will bring an era of progress, prosperity and development in every nook and corner of the country. He said these under construction projects have created job opportunities for thousands of jobless youth and generated business activities.

He said an area of 33,000 acres of barren land of Turbat district will be brought under cultivation after completion of Mirani Dam in June 2006.

He was of the view that socio-economic condition of the people of the adjoining areas will also be improved. He said people opposing this project should mend their ways and work for the welfare of the masses instead of creating hurdle in the development project mainly aimed at the welfare of the poor segment of the society.

Earlier, Chairman WAPDA in his briefing said Mirani Dam costing over Rs. 5.8 billion is being constructed by ‘DESCON’ across the Dasht river about 30 miles west of Turbat in Makran division of Balochistan.

The project is located about 380 miles south west of Quetta. It has central Makran range in the north and is located on the confluence of two rivers - Kech and Nihang.

He said 600 people are working on the project out of which over 350 belonged to Balochistan province including locals. He said full amount of the compensation has already been paid to Balochistan government. He said if there are any left over affectees, they will also be compensated after receiving survey report from Nespak.—APP

---------------------------------
Pak, China to enhance relations in all fields

PM holds talks with Chinese President

Hu assures help in economic development

Shaukat says Pakistan against arms race in region

Stresses resolution of Kashmir, Palestine disputes

Beijing—Prime Minister Shaukat Aziz met President Hu Jintao here Thursday and discussed with him the matters relating to bilateral cooperation, particularly in the economic field.

The meeting held at the Great Hall of the People lasting for about 45 minutes, during which the two countries reiterated their resolve to further deepen their existing bilateral ties in all areas of common interest.

Official sources told APP that the President Hu Jintao reassured that China will continue to help Pakistan in its economic development.

While welcoming the Prime Minister, the Chinese President hoped that his visit would further contribute to the development of their decades’ old partnership.

Shaukat Aziz conveyed him greetings and good wishes on behalf of President General Pervez Musharraf and the people of Pakistan. He thanked him for China’s consistent support to Pakistan for its socio-economic development.

He told him that he had held very fruitful talks with his Chinese counterpart Wen Jiabao, which covered all areas of their common interest.

While talking with the top leaders of Dongfang Electric Corporation, who called on him here at the State Guest House, Prime Minister Shaukat Aziz Thursday appreciated China’s assistance in modernization of Pakistan’s railways.

They reviewed the progress on agreement, under which China was providing 169 bogeys and 69 locomotive engines to Pakistan as well as improving signalling and track system.

Aziz hoped that China’s commitment regarding transfer of technology will help the country make self-reliance in the communication sector.

A delegation of China International Water and Electric Corporation also called on the Prime Minister and discussed various proposals for enhancing their bilateral cooperation in science and technology sector.

Shaukat Aziz asked a Chinese company, ‘The China International Water and Electric Corporation’ to take necessary steps for early completion of Mangla Dam’s raising project.

He was talking to the company’s top executives, who called on him at the State Guest House. He hoped that the project would become another symbol of their deep-rooted friendship.

Aziz lauded China’s support and assistance in the development of dams and other water resources in the country.

He hoped that the company will take part in international bidding for construction of Neelum-Jhelum and other such dams.

Addressing scholars and students here at Tsinghua University, Prime Minister Shaukat Aziz called for eradicating socio-economic deprivations and injustices world over to get rid of terrorism and extremism.

He said the resolution of long-standing conflicts in particular Kashmir and Palestine disputes is essential for the success of the international fight against terrorism.

There other issues such as Iraq and Afghanistan that need to be addressed thought concerted international action, he added.

Aziz during about an hour-long speech that covers political and economic issues, highlighted Pakistan’s position on terrorism and its efforts to improve the living conditions of its people.

He also spoke about the growing Sino-Pak ties in various sectors, terming his meetings with the Chinese leaders as highly successful.

He said, “extremism and violence often breed in the humiliation and despair of the people who have been denied freedom and basic dignity.

“ There is need to ending poverty, ensuring better trade terms and opportunities to the developing countries, sharing advanced technology for human good,” he added.

While elaborating Pakistan’s peace efforts in the region, the Prime Minister said “ We are sincerely pursing dialogue with India to resolve Kashmir issue.”

We want to address the issue with an open mind for a settlement that is acceptable to Pakistan and India and most importantly to the people of Kashmir because the dispute relates to their fundamental rights.

Pakistan’s approach for peace and development in South Asia includes: First dialogue for settlement of all disputes particular in Kashmir.

Second, restraint and security balance in South Asia, the Prime Minister said, adding, “ We do not desire an arms race in the region conventional or nuclear.”

Third, cooperation for economic development of the region both on bilateral basis and within the framework of South Asian Association for Regional Corporation (SAARC).

In South Asia, he said the great challenge is economic development to eradicate illiteracy and disease.

Pakistan, he said is attaching highest priority to the economic development, with a number of reforms in social sector, which have now started bringing fruits to the people.

About terrorism, Shaukat Aziz further said long-standing issues and poverty have given rise to the perverse phenomena of terrorism which must be rejected.

The Prime Minister also pointed out that Today the world is dominated by the only super power wielding unprecedented military and economic strength.

“Tendencies of unilateral action, assertion of doctrine of pre-emption and indifferences to multi-lateralism are trends that undermine UN Charter,” he added.

Praising the China-Pakistan friendship, Shaukat Aziz said “We are happy that our long-standing cooperation remained constant in spite of the changing regional and international environment.”

Pakistan-China close friendly cooperation has contributed to promoting international understanding and building bridges.

Shuakat Aziz said China’s political strength is an assurance of stability in Asia. China has eschewed domination and rejects hegemony and is committed to promotion of a peaceful environment in its neighbourhood.

This approach is evident in China’s active pursuit and success in settling its borders with almost all its neighbours.

He also appreciated China’s efforts, initiating six-party talks on the Korean unclear issue and averting a crisis.

Later, the Prime Minister also answered the questions by the students, that were mostly related to future prospects of China-Pakistan cooperation in economic and tourism sectors. Earlier, the President of the University Gu Binglin welcomed the Prime Minister and appreciated also his efforts for economic development of Pakistan, as well as bringing the Sino-Pak friendship to higher level.—APP

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