WLB to organise PIEE 2004 from April 13

RECORDER REPORT

ISLAMABAD (March 31 2004): The World Learning Bureau (WLB) in collaboration with British Council and Higher Educational Commission of Government of Pakistan will organise a two-day 14th Pakistan International Educational Exhibition (PIEE) on April 13-14, 2004 at the Pearl Continental Hotel Rawalpindi.

The Bureau has been organising such exhibitions every year since 1993 and the 14th PIEE 2004 will be the biggest educational show in this part of the world.

All learning institutions including schools, polytechniques, colleges, universities, vocational training centres, foreign affiliated educational institutes, education promotion organisations, publishers, manufacturers/dealers of educational equipment and other related services are coming to Pakistan to participate in PIEE 2004, which is the largest and most established regular educational exhibition of Pakistan.

Around more than 30 universities registered with British Council are also participating in the exhibition.

An international Educational Conference titling "Role of Higher Education/Technologies Nation Plans" will also be arranged in between the exhibition.

Copyright Business Recorder, 2004

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Pakistan to exceed GDP target

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KARACHI - Pakistan's economy continues to be plagued by unemployment and inflation despite a GDP growth rate that looks set to surpass this year's 5.3% target, according to the central bank.
"Due to an exceptional rise in the industrial sector and improvement in many other macroeconomic indicators" the economy appeared set to surpass the projection for the year to June, the State Bank of Pakistan said in its half yearly review.

"It seems highly probable that real GDP growth during fiscal 2003-2004 will be comfortably above the 5.3% target for the year."

Pakistan's gross domestic product (GDP) growth rate would come in higher than the 5.1% reached last year despite unemployment and inflation looming large, the bank said.

"Realistically speaking, with the economy still performing below the 6% long-term growth trajectory, the likelihood of immediate relief (in unemployment) is low," the report said.

Unemployment stood at 7.8% in 2003, compared with 6.3 percent in 2002. Rising steadily, it has more than doubled the 3.1 percent recorded in 1990.

The bank also expressed concern about rising inflationary pressures, which drove food prices to six-year high in December, hitting the poor hard.

"The incidence of inflation falls disproportionately on the most vulnerable income groups who are least prepared to absorb this burden," the bank said while pointing out poor food supply management.

More than a third of Pakistan's 145 million people are impoverished.

The bank said the country's economic improvement was helped by record high exports, increasing imports of capital goods and record private sector credit.

Exports grew 13.2% in the first half to reach 5.9 billion dollars compared with a forecast of 5.8 billion dollars, it said.

Imports reached 6.6 billion dollars, up 14.1% from the corresponding period last year, reflecting a trade deficit of 0.9 percent.

The central bank described as extra-ordinary the expansion of 186 billion rupees (3.23 billion dollars) in the private sector credit during the fist two quarters.

"This extra ordinary growth not only reflects the widespread economic recovery but also structural shift in the banking system that has increased the credit access to a larger portion of the economy," the report said.

Industrial production surged to 12.6%, compared with 5.1 percent in the same period last year.

"The continued progress of the country on a stable and sustainable high growth trajectory will depend crucially on sound policies," it said.

"The government policies are likely to come under greater scrutiny as investors critically evaluate its commitment to consolidate and deepen the gains already made," the bank said.

The Manila based Asian Development Bank also praised Pakistan's economic recovery last week, saying that it was entering a "high growth path."

"Strong revenue growth so far indicates that the revenue and fiscal targets for the current year should be easily achieved," the ADB said in its latest quarterly report on Pakistan.

AFP

http://www.bday.co.za/bday/content/d...6078-0,00.html

NWFP opposition wants agricultural tax waived

By Zakir Hassnain

PESHAWAR: The opposition in the North West Frontier Province (NWFP) Assembly on Tuesday strongly criticised the agricultural income tax, demanding the provincial government either waive it or give maximum relief to poor farmers.

Opening the debate on the agricultural income tax, abyana (water tax), katchi abadis (slums) and affidavit taxes, Abdul Akbar Khan, the parliamentary leader of the Pakistan People’s Party-Parliamentarians (PPPP), said it was an income tax but the government was taking a fixed tax on agricultural income from farmers and landowners.

He described the tax as “gundda tax”.

He said it was a “violation” of the law because the government was receiving a fixed tax on farmers’ income.

Mr Khan argued that sometimes crops were damaged due to natural calamities and sometimes farmers did not get enough produce and suffered losses. “So, how can you get a fixed tax from them?” he asked the treasury benches. He added the government had also been increasing the fixed tax every year.

The PPPP leader said farmers in Punjab having 25 jareebs of land were exempt from agriculture taxes while the Sindh government had given exemption to farmers having 32 jareebs of land. Mr Khan demanded the agriculture tax be waived, because the NWFP was the poorest province where 80 percent were living in villages and their source of income was agriculture.

He said the government should at least exempt people having 20 jareebs of land if it could not do away with this tax. He also said the tax should not be crop-oriented.

On abyana, the PPPP leader said the Punjab government was receiving abyana according to the per-acre of land formula. “Our government should also levy abyana on per acre,” he suggested.

Amanat Shah from the Muttahida Majlis-e-Amal demanded landowners having 15 to 20 jareebs of land be exempted from paying the agriculture income tax.

PPP-Sherpao’s Jamshaid Khan said there should be no taxes on farmers in the MMA government.

NWFP Assembly Speaker Bakht Jehan said the government committee and standing committee of the assembly should sit together to make a comprehensive report on the tax issue.

Minister Raja Faisal Zaman proposed the standing committee, and the committee formed by the government, should meet to debate the issue and make a decision, which should be in the interest of poor people.

On the slums issue, Bashir Ahmed Bilour, the parliamentary leader of the Awami National Party (ANP), said the Punjab government had given ownership rights to slum-dwellers and the NWFP government should also follow them. Mr Bilour said Sindh and Punjab were using 11,000 cusecs of water of the NWFP and demanded they be asked to pay for it. “Thus the money collected can be used to waive abyana to our people,” he said.

MMA’s Maulana Nizamuddin and Abdul Majid Khan complained about faulty tube-wells.

In their joint call attention notice, Riffat Akbar Swati and Nasreen Khattak of the PPP-Sherpao and Nighat Yasmeen Orakzai from the Pakistan Muslim League-Quaid-e-Azam, again raised the issue of edible oil donated by the World Food Programme (WFP) for schoolchildren in district Mansehra.

Later, the speaker adjourned the house until today (Wednesday).

http://www.dailytimes.com.pk/default...-3-2004_pg7_26

Private sector’s role in tourism stressed

LAHORE: Speakers at a seminar titled Tourism Promotion in Pakistan, organised by the Pakistan Tourism Promotion Council (PTPC) on Monday, called for the involvement of the private sector and more seminars to promote tourism.

Punjab Minister for Fisheries Jam Mohammed Hashim, the chief guest, said Punjab Chief Minister Chaudhry Pervaiz Elahi was committed to promote tourism in the province. “The chief minister understands that tourism has become an industry and is taking various steps to promote the sector capable of earning foreign exchange,” Mr Hashim said. The deputy managing director of the Pakistan Tourism Development Corporation said the corporation was working on policy to promote tourism internationally.

Sarhad Tourism Development Corporation Managing Director Mohammed Mushtaq said his department was giving all facilities to tourists in the Northern Areas.

“Pakistan has all the beauty a country can offer to tourists and has a great potential to attract foreign tourists,” said the PTPC chairman. —Staff Report

http://www.dailytimes.com.pk/default...-3-2004_pg7_28

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State Bank of Pakistan Second Quarterly Report, 2003-04

Benefits of low cost of credit were not without a price

Staff Report

KARACHI: During the first half of the current fiscal year, there was an unprecedented expansion of Rs 186.6 billion in private sector credit, more than twice the credit extended during the first half of 2003, on account of low interest rates and the growth of the consumer credit market, said the SBP quarterly report released here Tuesday.

However, the benefits from the low cost of credit have not been without a price, the report said. “The resulting fall in carrying costs have reduced an important constraint on speculative activities,” the report said.

It said the recent wheat shortages clearly illustrate the dangers to public welfare from an unfettered private sector in the absence of the discipline of a competitive market or government regulation. “Illegal and immoral speculative activities need to be reined in through implementation of anti-trust legislation in letter and spirit, as otherwise such activities would undermine the public support for market liberalization, thereby threatening to lock the economy into a less efficient over-regulated paradigm,” the report said.

It said the presence of market collusion and the effective absence of regulatory bodies has contributed significantly to price pressures in many segments of the economy such as cement, automobiles, and wheat.

The report also said the extraordinary growth in credit expansion not only reflects the widespread economic recovery but also the structural shift in the banking system that has increased the credit access to a large portion of the economy.

http://www.dailytimes.com.pk/default...1-3-2004_pg5_1


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Govt borrowing falls sharply in H1 to Rs 33.7b

Staff Report

KARACHI: The government’s improved fiscal position during the first half of 2004 reduced the financing requirement to only Rs 33.7 billion - almost half of the Rs 65.7 billion needed in the first half of 2003, the State Bank of Pakistan (SBP) said in its quarterly report released here Tuesday.

“A striking development in the profile of government borrowings during the first half 2004 is the abrupt rise in borrowings from the SBP during November 2003,” the report said. “This is a reflection of the SBP efforts to contain a rise in interest rates. The subsequent substitution of the borrowings from the SBP with borrowings from scheduled banks mirrors the SBP efforts to meet credit plan net domestic assets (NDA) target through open market operations.”

Commodity operations: The central bank said that the volume of public sector commodity procurement operations has been falling steadily since June 2002, and added that even the seasonal increase during May-June 2003, was significantly lower than the level witness in the last few years, the report said.

“In absolute terms the net retirement of commodity loans totalled Rs 21.2 billion during first half 2004, almost unchanged from first half of the fiscal year 2003, taking the aggregate stock of outstanding commodity operation loans at the end December 2003 to Rs 52.8 billion, the lowest since may 1999,” it said.

Further, the report said that there was an unprecedented expansion of Rs 186.6 billion in the private sector credit during the first half of 2004, which was more than twice the credit extended during the first half of 2003. “The extraordinary growth not only reflects the widespread economic recovery but also the structural shift in the banking system that has increased the credit access to a large portion of the economy,” it added.

The SBP quarterly report also said that the textile sector continued to dominate the net credit off-take, accounting 38.2 percent of the year-on-year growth.

“This growth appears consistent with high cotton prices and strong growth in textile exports,” the SBP said. “Similarly, the growth of personal loans too remains strong, while an encouraging point in the credit profile is the sharp jump in the machinery loans (possible construction) that suggests a pick up in the investment.”

The net credit to the public sector enterprises (PSEs) continued to decline during first half, which appears to reflect the success of the government’s efforts towards their financial restructuring as well as improved management, in order to prepare for their privatisation, it said.

The report added that the monetary expansion during first half was marginally below than the credit plan target of 9.15 percent but slightly higher than that in first half 2003. However, there was a structural shift in the composition of the growth in the two years. This year, monetary expansion is originating largely from net domestic assets in contrast to last year’s expansion, which was principally through changes in net foreign assets.

The SBP further said that the decline of the currency to deposit ratio (CDR) in recent years has been jolted in November 2003 by a surprisingly large rise in currency in circulation, which pushed the ratio to 0.36 up sharply from the 0.34 recorded in the preceding month.

http://www.dailytimes.com.pk/default...1-3-2004_pg5_3

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UK to support Pakistan at EC

LAHORE: The United Kingdom would continue to support Pakistan against the imposition of anti-dumping duty on Pakistani bed linen by the European Union, Hamish St Clair Daniel, the British deputy high commissioner, has said.

In a meeting with Mian Anjum Nisar, president, Lahore Chamber of Commerce and Industry (LCCI), here Tuesday, the British envoy said that the United Kingdom has continuously extended support to Pakistan in its efforts against terrorism, and added that efforts are afoot to raise the bilateral economic cooperation between the two countries.

On foreign investment in Pakistan, Mr Daniel said that several British companies in the fields of education and training, printing and packaging, and textile and designing were interested in shifting their businesses to Pakistan.

The British diplomat also expressed satisfaction over the new development taking place on the India-Pakistan front. Particularly, he lauded changing business atmosphere between the two countries.

He also agreed with Mr Nisar that Pakistan has been subject to negative propaganda by the Western media, and hoped that the investment conference taking place in the UK next month would further enhance the flow of investment to Pakistan.

On the occasion, Mr Nisar invited British companies to invest in Pakistan particularly in Gawadar and Sundar industrial estates to make best use of the geographic location of this free port. —Staff Report

http://www.dailytimes.com.pk/default...-3-2004_pg5_16

Farming Community Being Provided Full
Help To Enhance Production. Rind

ISLAMABAD, Pakistan : March 31 (PNS) - The Federal Minister for Food & Agriculture, Sardar Yar Muhammad Rind, has said that Government is all out to help farming community particularly small farmers because they are the backbone of country's economy as 40% of our exports depend on agriculture.

He was speaking as Chief guest in a field day organized by Crop Maximization Project at Union Council 45-SB District Sargodha on Tuesday. He said that the Government is determined to leave no stone unturned in up-lifting the lot of farmers and to boost per acre yield not only to attain self-sufficiency but also to export maximum of our agriculture produce.

http://www.paknews.com/flash.php?id=5&date1=2004-03-31

World Community To Enhance Its Cooperation With Pak In Combating Cyber Crimes

ISLAMABAD, Pakistan : March 31 (PNS) - Interior Minister Syed Faisal Saleh Hayat urged the world community to further enhance its cooperation with Pakistan as the country strives to build its capacity for effective combat of cyber crimes.

"An effective and meaningful cooperation by the international community will help the Federal Investigative Agency to develop its capacity in combating latest kinds of cyber crimes as well as terrorism," he stated at a one-day seminar on Cyber Security - Challenges and Solutions. Being in the global village, it is the common desire of all to assist each other in protecting our information resources from hostile cyber criminals who have acquired the skills to strike our vital inforamtion resources, he maintained.

"They are friends of no one, only our collective wisdom and knowledge base can nutralize their evil designs." Faisal said the establishment of National Response Center for Cyber Crimes at the FIA Hedquarters is a right step at an appropriated and pledged that the Government would provide necessary resources to the FIA in order to make the response centre capable of providing quality services and support system to all in their fight against cyber crimes.

The Minister believed that all Departements and organizations should take immediate steps to get their concerned personnel trained in the vital discipline of cyber security and provide them all opportunities for involvement in information security programmes with skills and knowledge, as needed direly. "This is a gigantic task - the local private sector companies dealing with cyber security related issues, international organizations and the Government and semi government departments, having training facilities and resources should come foward in bolstering FIA's capacity building against cyber crime," he emphasized.

Director General FIA, Saiyed Mohib Asad, informed the gathering that the Investigative agency has been using trained manpower in combating criminals involved in hacking of Internet sites, ransom, kidnapping and money laundering. He called for promulgation of a law on cyber security. Project Director, Natrional Response Centre for Cyber Crimes, Ammar Jaffri said, so far the centre has helped in nabbing 25 individuals involved in cyber crimes. He said a series of seminars and workshops in various parts of the country on the subject have greatly helped in arousing awareness among people about the imperatives of cyber security. The seminar was organized jointly by the FIA, Total Communications and Uffaq Technologies.

http://www.paknews.com/flash.php?id=4&date1=2004-03-31

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China Textile Delegation Visits Pakistan

Updated on 2004-03-31 09:58:43

BEIJING, China : March 31 (PNS) - An eight-member delegation, comprising representatives of the Chinese textile industry left here for Pakistan to explore further avenues of bilateral cooperation.

China is keen to enhance its cooperation with Pakistan in the development of the textile industry, said a member of the delegation. The Chinese government had been supporting the Chinese companies visit Pakistan to explore the market, establish joint ventures and to undertake export-oriented projects of bilateral interest.

According to the sources, Pakistan's trade with China in textile sector has been encouraging. The export of cotton yarn and fabric to China in the recent year was amounted to about 400 million dollars. At present, nearly 70 percent of country's total export to China comprised cotton yarn and cotton fabric. However, Pakistan's side will now focus its attention to export its value-added products to get better price as well as to rectify the existing trade deficit in their bilateral relations.

http://www.paknews.com/flash.php?id=12&date1=2004-03-31

Large Gas And Oil Reserves Discovered In Sanghar

Updated on 2004-03-31 10:17:36

KHANGARH, Pakistan : March 31 (PNS) - Large amount of gas and oil reserves had been discovered in Sanghar (Sindh) and Gagri (Tull-NWFP) and laboratory analyses were being made to determine the commercial value of these reserves.

This was stated by Federal Minister for Petroleum and National Resources, Choudhry Nourez Ali Shakoor at the ground-breaking ceremony of gas supply to Khangarh town on Tuesday, where Prime Minister Mir Zafarullah Khan Jamali was the chief guest. The minister said, present government had pursued a positive petroleum policy, and had liberally granted exploration licences to several national and international companies for exploring oil and gas in Sindh and Balochistan.

He said, the discovery of gas in Gagri (NWFP) was a welcome sign, as it would largely benefit the people of the province. He also termed the over all results of gas and oil exploration in the country as very promising, and hoped that these would help the country in achieving economic prosperity. The minister said that seismic survey in some areas of Punjab was also in progress, and was also confident of oil and gas discovery in these areas.

He said that Mari Gas Company had discovered gas in Ghotki district in 1957, after which a number of fertilizer factories were established in Ghotki to avail gas supply from Mari Gas. He complemented SSGC and PSO for their notable contribution in the national economy and added that their performance was also recognized at international level. He also spoke about steel price crisis in the country, and attributed to the international fluctuation trend of prices.

He said that government was doing its best to overcome the crisis, and hoped that the crisis will end in a month or two. The minister said that previous governments had failed to fulfil the needs of common men, due to which poverty was increased. He further said that due to their sheer negligence most of the development funds were wasted. He said that situation was quite different now, and Prime Minister had evolved a very transparent policy for ensuring effective and proper use of public funds.

http://www.paknews.com/flash.php?id=14&date1=2004-03-31

Govt Spending Huge Amount On Promotion Of Education

Updated on 2004-03-31 09:538

GUJRANWALA, Pakistan : March 31 (PNS) - The present government is spending millions of rupees on the promotion of education to meet the new challenges facing the country.

Punjab Minister for Culture and Youth Affairs ,Chaudhry Shaukat Ali Bhatti said this while addressing the silver jubilee function of Nausheen Model Shcool at Wazirabad on Tuesday. Earlier, the minister performed the launching ceremony of a book 'Democracy and Dictatorship' written by Sh. Tariq Ameen Khalid,Advocate. Tehsil Nazim Ch.Shaukat Manzoor Cheema speaking on this occasion said that the private educational institutions are fully cooperating with the government in its pursuit of promotion of edcuation. He also announced Rs.5000/- for the school on its performance.

http://www.paknews.com/flash.php?id=9&date1=2004-03-31

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5.5 to 5.8pc GDP growth likely, says State Bank

By Our Staff Reporter

KARACHI, March 30: The second quarterly report of the State Bank says Pakistan economy may grow 5.5-5.8 per cent during this fiscal year ending in June. Initially the growth target was set at 5.3 per cent.

The central bank released the report here on Tuesday. "SBP staff forecasts put the FY04 real GDP growth within the 5.5 to 5.8 per cent range," says the report.

It attributes the improvement in the economic performance to record high exports; a sharp rise in imports of machinery and inputs; the continuing surge in capacity utilization; a strong growth in taxes and above all "the record growth in net private sector credit.

But the report warns that "some evident weaknesses cloud the signal improvements in most areas of the macro economy." "Anecdotal evidence suggests that unemployment, though falling gradually, remains significant; and realistically speaking, with the economy still performing below the 6 per cent long-term growth trajectory, the likelihood of immediate relief is low."

"Another, more recent, concerns the spectre of rising inflation," the report further warns. "While overall CPI inflation (or inflation measured by consumer price index) is still low relative to that in past years, there is a clear evidence of a gradual up trend."

The report also points out that with inflationary pressures particularly evident in food staples, driving food inflation to a 6-year high in December 2003, "the incidence of inflation falls disproportionately on the most vulnerable (low income groups who are the least prepared to absorb the burden)."

"The upsurge in food inflation that appears driven by supply shocks as well as less-than-adroit management, clearly points to the considerable scope for improvement in managing the agri-product supply chain."

The report also remarks that the "benefits of the low cost of credit have not been without a price; the resulting fall in carrying costs have reduced an important constraint on speculative activities."

"The recent wheat shortages clearly illustrate the dangers to public welfare from unfettered private sector initiated in the absence of the discipline of a competitive market or government regulation," the report notes.

"Illegal and immoral speculative activities need to be reined in through implementation of anti-trust legislation in letter and spirit...Otherwise such activities would undermine the public support for market liberalization thereby threatening to lock the economy into a less efficient over-regulated paradigm."

In the short-term SBP forecast indicates that CPI inflation (or inflation measured by consumer price index) will remain in the range of 3.8-4.2 per cent. (Annualized CPI inflation has already risen to 3.49 per cent in eight months of this fiscal year. Independent economists say at the end of the fiscal year it may settle somewhere between 4.2-4.5 per cent).

Commenting on the rising marginal inflation the SBP report says that it was the increase in food prices that dominated the profile of inflation. But since food inflation is less sensitive to interest rates and since the external sector account surplus continued (though at a lower pace) the State Bank kept its easy monetary policy stance unchanged.

But "SBP continues to closely monitor price trends and stands ready to respond aggressively to contain any surge in inflation beyond tolerable limits." The report says that low interest rates have contributed to the growth and development of consumer credit market and increased access of relatively cheap credit to agriculture.

The report further says that during the last two years the easy availability of consumer credit has catalyzed a huge surge in demand for automobiles, especially cars and motorcycles. Production of cars shot up to 44,433 units in the first half of this fiscal year which is around 70 per cent of car production in the entire FY03.

"While the sharp increase in production certainly helped reduce delivery lags as well as the premiums for immediate availability (delivery) these problems have not yet been eliminated."

This may be a case of market collusion. The report says that "the presence of market collusion and the effective absence of regulatory bodies has contributed significantly to price pressures in many segments of the economy such as cement, automobiles, wheat, etc."

"The relatively steep head-turning hikes in prices of more visible commodities play an important role in raising the otherwise more modest inflationary expectations; this has probably been the case in the recent past as well."

The report says that the public case for the removal/reduction in protections for the auto industry is simply based on the belief that domestic manufacturers were taking undue advantage of the privilege market access to reap windfall gains with little benefit to the country in terms of transfers of technology, increased investments and job creation.

"Moreover, there is seemingly little point in protecting a domestic market that is apparently uncompetitive internationally, given that Pakistan is soon expected to accede to a WTO-mandated reduction in tariff and non-tariff barriers."

"However, as often is the case, the argument for the retention or removal of protections for the auto industry is not quite as simple as it appears." "A closer look at the issues suggest that the government has to strike a very delicate balance between consumer welfare and the need to develop engineering industry and foster investor confidence by avoiding abrupt policy shifts."

"Another major theme visible from the Q2-FY04 developments is the fiscal space that is finally emerging as a result of past reforms and the growth in the economy," says the SBP report.

"The economy has now suffered many years to low investment in health, education, infrastructure, etc. in the attempt to correct the burden of historic macroeconomic imbalances, and these inevitably have curtailed the economy's ability to accelerate growth."

"Thus, the increasing fiscal space must now be focussed on redressing the social sector shortfalls expeditiously," warns the report. One constraint often cited to support the inability to accelerate development expenditures is the lack of implementation capacity. But the report counters: "This need not be a binding constraint, as the government could seek to take advantage of the managerial capacity available with reputable established private sector social service providers."

Finally, "a combination of good fortune and the sound policy have placed Pakistan's macro-economy on a sound footing, and the country stands on the verge of graduating successfully (hopefully permanently) from an IMF programme."

"However, this should not imply a relaxation in macroeconomic discipline. Quite to the contrary, the continued progress of the country on a stable and sustainable high growth trajectory will depend crucially on sound policies."

"If anything, the government policies are likely to come under greater scrutiny as investors critically evaluate the government's commitment to consolidate and deepen the gains already made."

http://www.dawn.com/2004/03/31/top11.htm

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NFC award to benefit Balochistan
most: Tourism to be promoted in Gwadar - Aziz

By Our Staff Correspondent

QUETTA, March 30: Balochistan will get maximum benefit in the next National Finance Commission award, says Federal Finance Minister Shaukat Aziz. He was speaking to leaders of the business community, bankers and members of the Balochistan Chambers of Commerce and Industry here on Tuesday.

Mr Aziz said that President Musharraf and Prime Minister Jamali had called for accommodating maximum demands of the provinces in the next NFC award, making it more acceptable and realistic, adding that they had also called for improving their resource situation.

Highlighting Balochistan's potential in various sectors, including agriculture, oil, gas, mining, fisheries and tourism, the federal finance minister said the government was making efforts for attracting foreign investment in Balochistan.

Focussing on providing better facilities at the Gwadar port, Shaukat Aziz said that transit shipment facility would be provided, enabling businessmen to keep their cargo there for onward shipment to the Gulf states.

The government, he said, was planning to spur tourism in Gwadar, attracting foreign tourists by providing maximum recreational facilities, adding that the Oman government would extend financial assistance in this regard. He reminded that the Chinese government is already helping Pakistan in developing the port.

He said that the development of tourism would translate into provision of jobs to the local people. Shaukat Aziz said that bilateral trade between Pakistan and Afghanistan had increased by comparison with its trade with Iran, adding one could now spot Pakistani products in Kabul's markets.

He said that in the future, the country's trade with Afghanistan would further improve. The government, he said, was trying to discourage smuggling through transit trade with Afghanistan, adding that X-ray scanning machines would be installed in Peshawar, Torkham, Chaman, Quetta and Karachi to check transit goods.

He said that Pakistan would establish a link with Afghanistan and Central Asian states via Chaman, adding that work would soon start to lay a railway line between Chaman and Kandahar. Two surveys had been carried out in this connection, the federal finance minister said.

Referring to the country's economic recovery, Shaukat Aziz said that Pakistan's economic position was more stable now than in the past, adding that soon the country would free itself from the clutches of the international monetary institutions.

Highlighting economic reforms undertaken by the government, Mr Aziz said job opportunities were being created with an improvement in the country's economic conditions, adding it would help in eradicating poverty and under-development in provinces besides boosting trade and industrial activities.

Agricultural production, he said, was increasing, adding Pakistan produced a record sugarcane crop while registering a nine per cent increase in its rice production.

Pakistan's industrial output, he said, had increased by 15 per cent while people were investing in textile, engineering, automobile and cement industries. Shaukat Aziz said Saindak copper project had been revived with China's help, adding the project would help Balochistan improve its economic conditions.

Earlier, president of the Balochistan Chamber of Commerce and Industry Haji Ghulam Sarwar, vice-president of the Federation of Pakistan Chambers of Commerce and Industry Sardar Mohammad Ali Jogezai and other business leaders also spoke on the occasion.

Federal Minister for Finance Shaukat Aziz and Balochistan Chief Minister Jam Mohammed Yousuf held a meeting here on Tuesday, APP adds. Ways and means to promote tourism on Balochistan coast was discussed, the news agency said. It was agreed that financial institutions would be approached for extending financing support to investors in Gwadar.

http://www.dawn.com/2004/03/31/nat12.htm

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PM's Beijing visit to cement ties: diplomat

By Our Staff Correspondent

KARACHI, March 30: China hopes that the forthcoming visit of prime minister Mir Zafarullah Jamali to Beijing in connection with the Asian Economic Forum meeting would further consolidate the time-tested friendship between the two countries.

This view was expressed by the Chinese Consul-General Sun Chunye while addressing the Sindh committee of the Council of Pakistan Newspaper Editors. He said that friendship between China and Pakistan was a good example for other nations to emulate and added that economic relations between the two countries had gained a new dimension.

This could be gauged from the fact that bilateral trade turnover, which was $1.8 billion in 2002, had jumped to $2.5 billion in 2003. This year the figure is expected to further increase.

The Chinese consul-general, who lauded Pakistan's one-China policy and support on other issues, said that in order to meet the challenges of WTO, which would become effective in 2005, it was necessary that ties between the two countries should be raised to optimum level.

He also referred to the presence of China's leading trading and manufacturing companies in Pakistan and said that the Gwadar port project, Saindak copper and Thar coal projects, the Karachi- Lahore oil pipeline project and improvement of rolling stocks of the Pakistan Railways were some of the outstanding examples of bilateral economic cooperation.

According to the consul-general, 200 Chinese engineering personnel were stationed in Karachi. Similarly, more than 5,000 Pakistani businessmen were stationed near Shanghai for promoting business.

The Chinese Consul General stressed the need for improving the quality of Pakistani products and said his country was keen to make its contribution to the strengthening of a stable society in Pakistan. CPNE's president Mahmoodul Aziz welcomed the consul-general and assured him of Pakistan's commitment to friendship with China.

http://www.dawn.com/2004/03/31/nat14.htm


IBA urged to create funds for students

KARACHI, March 30: The Senate chairman, Mohammadmian Soomro, on Tuesday advised business schools, especially the Institute of Business Administration, to create endowment funds to provide better remuneration to teachers and financial assistance to needy students.

Speaking at the concluding session of a two-day conference on "Challenges for management, development and education in Pakistan", which was jointly organized by the IBA and the Association of Management Development Institutions in Pakistan, he said: "You need trained, qualified and dedicated teachers to impart quality education to students. If you want to retain good teachers, you have to offer them salaries which are commensurate with their abilities."

Management experts from various Pakistani business schools attended the conference and presented their research papers. Mr Soomro added that in addition to offering attractive pay packages to teachers, business schools should also keep their fee structure affordable.

"Financial autonomy, if achieved by business schools, will enable them to get rid of the intervention of others in their affairs. It will also help them maintain discipline and continue to attach importance to merit," he observed.

Emphasizing the need for greater interaction between various business schools of the country, he noted that it was a good sign that more such institutions were coming up.

Appreciating the efforts of the organizers of the conference, the Senate chairman suggested that such conferences should be held twice a year. He advised the organizers to invite government organizations like the National Institute of Public Administration and the National Defence Programmes.

He pointed out that the abilities and skills of the teaching staff were not evaluated from time to time at state-run educational institutions. He said he was happy to learn that the admission quota of government functionaries in the IBA had been abolished.

The Senate chairman said former students of business schools could extend financial support. He said the main objective of educational institutions and the government should be the development of human resources.

Earlier, the AMDIP chairman, Hasan Sohaib Murad, spoke about the proceedings, objectives and achievements of the conference. He added that the participants gained a lot of experience from the conference.

"We identified issues facing business management schools in the country, discussed their solutions, alternatives and various methodologies to overcome hurdles," he said, adding that faculty motivation, curricula, research methodologies and other issues were discussed in detail.

He said that a South Asian Management Forum would be held in April in Lahore and over 300 business management experts from South Asia would attend it. Faculty and experts associated with local business schools should prepare themselves for it and participate in it, he added.

The IBA director, Danishmand, said the country was facing a shortage of qualified and trained business managers. He added that the IBA would take the emergence of new business schools as a challenge.

He said students were granted admission to the IBA only on merit. He promised that the IBA would continue this practice. The conference manager, Hassan Danish, delivered the concluding address. -Agencies

http://www.dawn.com/2004/03/31/nat19.htm

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Banks disburse Rs43 billion farm credit: July-Feb 2003/04

By Mohiuddin Aazim

KARACHI, March 30: Banks have disbursed Rs43.16 billion farm credit in the first eight months of this fiscal year i.e. between July/February 2003/04 against the full fiscal year target of Rs65.5 billion. Thus the banking system has already achieved 66 per cent of the total farm credit disbursement target set for this fiscal year.

State Bank sources say that the bulk of this farm credit was disbursed by five major banks namely (i) National Bank (ii) Habib Bank (iii) United Bank (iv) Muslim Commercial Bank and (v) Allied Bank.

These banks combined disbursed Rs19.33 billion farm credit during July/February 2003/04 thus achieving 86 per cent of their target. They are supposed to disburse at least Rs22.4 billion to the agricultural sector under the State Bank mandatory farm credit scheme during the entire fiscal year 2004 ending in

June.

The sources say that Zarai Taraqiyati Bank Ltd. (ZTBL) also disbursed Rs17.77 billion during this period thus achieving 54 per cent of its full fiscal year target of Rs33 billion.

They said that the Punjab Provincial Cooperation Bank made farm loans of Rs4.69 billion which was around 65 per cent of their full fiscal year target of Rs7.5 billion.

Fourteen local private banks disbursed agricultural credit of Rs1.37 billion only but even at this level the amount was equal to 52 per cent of their full fiscal year target of Rs2.6 billion.

The list of the banks include (i) Askari Commercial Bank (ii) Bank Al-Habib (iii) Bank Al-Falah (iv) Bolan Bank (v) Faysal Bank (vi) Metropolitan Bank (vii) PICIC Commercial Bank (viii) KASB Bank (ix) Prime Commercial Bank (x) Saudi Pak Bank (xi) Soneri Bank (xii) The Bank of Khyber (xiii) The Bank of Punjab and (xiv) Union Bank.

Central bankers say whereas disbursement of a certain amount of money in farm credit is mandatory for five major commercial banks the full year targets of other banks are indicative in nature.

They say that the Rs43.16 billion agricultural credit offered by the banks was part of the overall bank borrowing of the private sector in July/February 2003/04 which reached at Rs230 billion.

They say that the farm credit of Rs43.16 billion disbursed in eight months of this fiscal year included both short term as well as medium term loans. Short term loans are extended for a period of six to nine months for purchase of seeds/ fertilizers/pesticides and fuel for tractors etc.

Medium term loans are advanced for five to 10 years and are given for investment purposes like purchase of tractors or installation of tubewells and construction of water reservoirs etc.

Top bankers admit that at Rs43.16 billion agricultural credit disbursement was quite low as a percentage of overall private sector credit. "We could have lent more," admitted head of a large local bank citing cumbersome recovery procedure of farm loans as a reason for not-so-good disbursement.

But he shared the market perception that major banks could easily boost farm credit disbursement taking advantage of their large rural branch networks if the focus on agricultural credit marketing and develop special skills in this area. "We are going to induct 100- 150 mobile credit officers whose job would be to visit farmers and assess their credit worthiness," he said.

The SBP second quarterly report released here on Tuesday says there is enough potential for the banks to maintain what it calls a fast growing farm credit disbursement trend. The report points out that at present out of the total of 6.6 million farm owners only one million have the access to the institutional credit.

"Therefore the future growth in agricultural credit mostly depends upon the outreach of the banks and the innovations they (the banks) bring in this field," observes the report.

The report says that despite the negative impact of lower than the targeted cotton crop and the loss to poultry sector due to the bird-flu virus agriculture sector is expected to grow by 3.7-4.2 per cent. Originally 4.2 per cent growth target was projected for the agriculture sector during this fiscal year.

http://www.dawn.com/2004/03/31/ebr3.htm

Six parties in run to buy Dalda business

By Dilawar Hussain

KARACHI, March 30: Six parties remain in the run for purchase of Dalda business of Unilever Pakistan, and the transactions is expected to be completed within the next four weeks.

After months of deafening silence on the matter, Unilever Pakistan's financial advisers, Hong Kong Shanghai Banking Corporation (HSBC) finally came out on Tuesday, with what it termed was its "first official press release" on the subject.

The bank recalled that Unilever had successfully divested its edible oil businesses in India and Nepal, and in both those countries it had acted as their financial adviser to help sell the business.

"HSBC has also been appointed as the financial advisers to sell Dalda business in Pakistan," the bank said and added that the internal process of which had started since October. "We are hopeful of a successful sell-out within four weeks," the bank said.

The statement issued by Unilever's financial advisers (HSBC) is being quoted here verbatim: "Unilever Pakistan has appointed HSBC as financial advisers to sell their edible oil business along with assets and brand "DALDA".

The process started in January 2004 where 16 parties showed interest in the business and confidential information memorandum was issued to them. Out of these, 12 parties participated in non-bidding bid.

After intensive and transparent evaluation, six parties were selected and due diligence and negotiations are in progress. The parties involved in final negotiations are representing Fauji Foundation, Habib Oil Group, Soya Supreme Group, Unilever Employee Welfare Group, Savola Group (Saudi Arabia) and Candyland Group."

The bank further stated that the parties named had shown 'keen interest' and the deal should be finalized by the end of April. Interestingly, HSBC asked press to refrain from asking "further questions", in the interest of what it called maintenance of "confidentiality and transparency of the sell-out".

But for all that, HSBC might perhaps want to answer some of the itching questions in its "second official press release". The sock exchange might also take an issue on the release of 'price-sensitive' information directly to the press, instead of routing it through the bourse.

The press release also does not clearly say, but the transaction is perhaps taking shape on negotiated basis and not through open bidding as is being done by the Privatization Commission.

Under the negotiated basis, the seller chooses a party based on the criteria that does not include price but other considerations such as whether they are a competitor in other businesses to the seller.

Such approach is also practised in private businesses to sell strategic assets. The "non-bidding bid" is also a term not quite familiar in earlier transactions in the country.

Market sources are speculating on figures of around Rs900 million to Rs1 billion that Unilever is likely to fetch from the sale of Dalda business. The sell-off would also possibly result in a one time cash inflow in 2004 for the company and a high cash dividend for the year and possibly improved profitability in the longer run.

Unilever Overseas Holding Limited, London, is the largest shareholder in its Pakistani ubsidiary, holding around 67 per cent of the 136 million outstanding shares. The Unilever Pakistan stock trades at the highest price, among all scrips quoted on the Karachi Stock Exchange; the current price running at Rs1540 for the 50-rupee share.

For decades, 'Dalda' has been a household name in the sub- continent. Its business grew more rapidly after Lever Brothers, London, affiliated with old time industrialist Kassim Dada's brand of ghee called 'Dada'.

Lever took stake in Kassim Dada's flourishing business at the time. The one thing that the foreign partner asked was to add Lever's first letter "L" in between "Dada".

But past is another country. The company's edible oil business was now facing almost a loosing battle with the combined pressure from smuggled, unbranded and competitive local ghee and cooking oil brands.

Yet, it is the prospective buyers, who naturally seem to see hope in the revival of the business, regarding the current downturn to be, but "cyclical".

http://www.dawn.com/2004/03/31/ebr5.htm

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Pak-Kuwait profit up by 33 per cent

By Our Staff Reporter

KARACHI, March 30: Pakistan Kuwait Investment Company (Pvt) Limited earned after tax profit of Rs2,830 million for the year 2003 which was 33pc higher than the previous year.

"The earning of Rs19 per share places Pak-Kuwait at the top of the best performing companies in the country's corporate sector including the entire financial sector", said Pak Kuwait in a statement.

The 25th Annual General Meeting (AGM) of Pak-Kuwait was held recently in Karachi and was attended by shareholders representing Government of Pakistan through State Bank of Pakistan and the Government of Kuwait through Kuwait Investment Authority. The audited accounts for the year ended Dec 31, 2002 were considered and approved by the shareholders.

Total assets on Dec 31, 2003 stood at Rs16,554m, as compared to Rs14,136 million during the same period of the previous year, which represented 17 per cent growth. Shareholders' equity registered 41 per cent growth during the year 2003 and stood at Rs7,795 million.

Pak-Kuwait paid Rs580m in dividends to shareholders, equivalent to around $10m, for the second consecutive year, i.e. 2002 and 2003. This was stated to be the highest dividend payout in the history of the company; a cumulative dividend payment by the company since its inception amounted to Rs4,112 million.

The Managing Director, Zaigham Mahmood Rizvi apprised shareholders regarding various achievements that were attained. In this respect several ratings and awards were achieved during the year 2003.

These included highest credit rating AAA awarded by Pakistan's two crediting agencies, PACRA and JCR- VIS. Code of Corporate Governance Rating of CGR-8 on a scale of 1-10 and ISO 9001:2000 certification from Moody's International for quality systems and procedures, the Pak-Kuwait press release said.

http://www.dawn.com/2004/03/31/ebr10.htm


Cement plant deal signed

By Our Staff Reporter

LAHORE, March 30: DG Khan Cement Company has signed a contract with a Danish company for the supply of complete 4,000 tons per day cement production plant at Khairpur, Chakwal.

The site selected for the new plant is suited for its proximity to abundant deposits of good quality raw materials. Since the plant is based on coal as fuel, it will give a big boost to the local coal industry, a news release issued on Tuesday said.

The new plant to be supplied by FL Smidth & Co A/S Denmark is based on the latest state-of-the-art technology, capable of producing 1.240 million tons cement annually.

"A unique feature of this contract is supply of heat efficient two support rotary kiln system, first of its kind in Pakistan and world's largest vertical cement grinding mill to be manufactured by the supplier company," the release said.

The current production capacity of cement from the two existing units at DG Khan Cement Company is 6,200 tons a day, which is being optimized for a further increase of 500 tons per day. With the completion of the new project, the total installed capacity of the company will rise over 3.32 million tons per year.

http://www.dawn.com/2004/03/31/ebr9.htm

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