[B][CENTER][SIZE="4"]Edible oil prices high despite 27pc fall in palm rates[/SIZE][/CENTER][/B]

[B]
Saturday, October 04, 2008
By Mansoor Ahmad[/B]

LAHORE: Palm oil prices have declined from $1,100 per tonne six months ago to $573, resulting in a fall of over Rs27 per kg after adjusting the dollar rate differential, though without a visible decline in retail rates.

The rates of palm oil, which is the main raw material of the edible oil industry of Pakistan, have registered a decline of around 27 per cent after the easing of crude oil prices in the global market. However, the rates of edible oil in the country are still in the range of Rs120 to Rs145 per kg, which was fixed by the manufacturers when global prices were at their peak.

The News has found that at peak with rates revolving around $1,100 per tonne, the import price of palm oil was Rs68,200 at the dollar rate of Rs62 six months ago.

After adding the fixed import duty of Rs9,800 on palm oil, the cost increased to Rs78,000 per tonne. Adding 15 per cent sales tax worth Rs11,700 and one per cent excise duty and withholding tax, each amounting to Rs2,000, the total landed cost of palm oil was Rs91,700 per tonne.

Manufacturers had increased the edible oil and Vanaspati ghee rates immediately after the increase in palm oil rates in the international market. The rates reached their peak starting from $460 per tonne in June 2006 to $1,100 in the early months of 2008.

Palm oil rates started declining sharply in the past two months without any relief to the consumers. At the current rate of $573 per tonne, the import price of palm oil used by the local industry comes to Rs44,694 at a high dollar rate of Rs78. After paying a fixed duty of Rs9,800 per tonne, the cost increases to Rs54,494. Sales tax has been increased by one per cent to 16 per cent which amounts to Rs8,719, taking the cost to Rs63,203. After adding excise duty and income tax at one per cent each, the total landed cost comes to Rs64,703, which is Rs27,000 per tonne less than the earlier cost.

The manufacturers, however, are not passing on the benefit to the consumers, though the decline in rates has also been gradual. In fact, palm oil deliveries for December and January shipments are even lower.

Economic experts point out that regulatory authorities, should take notice of the undue profiteering by the edible oil industry. They said that proper checks by various institutions could easily force the manufacturers to adhere to fair practices.

They noted that the income tax department for instance should inflate its income to the tune they overcharged. Manufacturers usually declare the same percentage of margin of profits that they have been declaring over the past years. They said they reduce margins in case of higher global oil rates but most of them do not review their profit margins when global edible oil rates go down and their profits soar.

Experts said that most of the manufacturers would try to fool the government and consumers by lamenting that the decline in global palm oil rates has been neutralised by the increase in the value of dollar vis-‡-vis the Pak rupee. They further noted that the calculations based on their own methods provided to the media would prove them wrong. They said the government should establish its writ to ensure the relief that the consumers deserve in the current inflationary environment.

[B][CENTER][SIZE="4"]
From sea to shore: A businessman’s struggle in Pakistan [/SIZE][/CENTER][/B]

[B]
Saturday, October 04, 2008
by Saad Hasan[/B]

KARACHI: After assuming charge of a navy merchant ship at a very young age, Haleem Siddiqui thought it was time for him to move on and sail into the world of commerce instead. Little did this seafarer know then that for doing so, he will have to brave through a tumultuous sea of Pakistani politics in the bargain.

Even now, as Chairman of the Pakistan International Container Terminal (PICT), the only such facility in the private sector which is owned by a Pakistani, he claims that all odds are against him.

However, there is good news in the near future. On October 5, 2008, when a ship carrying two sophisticated sea-to-shore quayside cranes for his terminal anchors at Karachi port, he will have a different reason to prove that Pakistanis can compete with any foreign terminal operator.

“You must come and see them. It will be something so different,” an enthusiastic Siddiqui, 67, said about the cranes, which help load and unload cargo from a ship. PICT already has four quayside cranes, two mobile harbor and 10 rubber tired gantry cranes.

For PICT the importance of new addition to terminal facilities is much more than just competing with other private operators. It is over and above the contractual obligations which Siddiqui had committed when he was finally allowed to set up the terminal after a battle of more than 20 years.

His lifelong struggle has its roots in advice given by his father almost 50 years ago. “I remember it very well. He told me whatever work you do, do it whole heartedly otherwise you will go nowhere. Age was an important factor and I had to firm up my mind then.”

Born to a doctor in 1941 in Lucknow, Siddiqui was fascinated by traveling to different places. After college, he migrated to Pakistan in 1958 when only 17. By the next year he was on the seas, living his dream onboard the ship “Pakistan Promoter”. “Back then there were no marine academies,” he recalled. “We used to go straight to the ship for training.”

For 12 more years, he remained affiliated with merchant navy, completed his masters and worked with different Pakistani and international shipping companies. By the time he decided to move on, in 1971, he was already commander of a ship. “There were not many qualified people in the marine services industry,” he said recalling how new shipping lines were fast coming up against lackluster growth in service providers on port.

A strong foresight backed by experience of service in merchant navy had made Siddiqui conscious of the changing trends in the shipping industry. He decided to venture into the stevedoring business despite having no experience in this particular field.

“Life is a gamble. One has to take risks,” he said about the decision to quit the job and invest whatever he had saved in the business. “I had my wife and a son and no liability as such. I must say my wife was supportive. I told her if something happened, I’ll just pick up my bag and go to sea again.”

Just like that, he bought a partnership into a struggling stevedoring company, Premier Mercantile Services and jumped into the world of cargo handling. “Stevedoring is loading and unloading cargos from a ship. It looks very simple but seriously it is not,” he said in a recent interview with The News. “While loading and unloading cargo, you are playing with the stability of a ship, you are also responsible to safely store cargo according to its nature and considering the voyage it is bound to make.”

Aware of the shift in mode of transportation, which started in 70s, from conventional shipping to containerization, Siddiqui knew it was imperative to equip his company with modern equipment.

“We kept on investing in the business and hardly took anything home. This is something which ship owners started to see as we improved and avoided even invisible damages to containers,” he said, adding big names like Cowasjees and Dinshaws slowly disappeared from the ports and shipping scene as they did not keep pace with changing trends.

In the ensuing years Premier Mercantile Services Limited had established its name as a leading company in the stevedoring business. In December 1981, he wrote to authorities that he wanted to establish a container terminal at Port Qasim, which was being constructed 50km from Karachi center.

“I still remember we wrote to Port Qasim suggesting that we were interested in developing a container terminal,” he said, lamenting “They laughed at me. They said it was not possible for container ships to come there.”

An opportunity to prove him right was to present itself soon. In early 80s dock labor at Karachi Port Trust (KPT) went on strike and Siddiqui pushed forward the idea of handling the ships at Port Qasim.

“Overnight we shifted all the equipment to Port Qasim and handled seven ships there. I was the first one to that,” he said, adding that made Port Qasim Authority (PQA) realise the importance of its location and finally in 1983 invitations were sought for construction of a container terminal there.

His company also participated but the contract was awarded to Dubai’s Al-Ghurair despite the fact that Premier Mercantile was handling bulk of the cargo at Pakistani port. Al-Ghurair which had no experience of handling container cargo did not invest anything till 1996.

Similarly in 1990 when KPT invited firms to develop the infrastructure, his company also participated. “Again we were rated the best technically and financially as we had the backing of IFC (International Financial Corporation).”

This project which would have made Karachi port the first in the world to move from public to private sector was made hostage by labor unions that were backed by the port’s administration, he claimed.

During that period, Siddiqui went to court and finally on September 15, 1993, Supreme Court ruled in his favor. “Admiral Tasneem, Chairman KPT, ringed me up the same day and said lets sign the agreement without any delay.”

However, just when he was near achieving his ambition, a decision to venture into politics turned everything against him. That same year he ran for a seat in parliament and was elected member of national assembly on a Pakistan Muslim League (PML) ticket, which as a party did not do well at the polls.

“Nawaz Sharif dragged me into politics,” he said recalling the time he got acquainted with the politician who was loved by industrialists for his business friendly policies. “The government formed by Pakistan Peoples Party created every hurdle in my way and the project was cancelled in 1995,” he said.

While he took the battle to the court again, foreign companies were preferred for setting up container terminals at KPT and Port Qasim. His fortune did not change even when PML was voted into government in 1997. When the PML government decided to set up a new terminal, Siddiqui’s company was disqualified on the pretext that he was in politics. And again he went to court. It was not until 2002, when then President Pervez Musharraf was in power that KPT had to negotiate with his company following orders of high court.

Finally the PICT was commissioned in 2004. The growth it has shown in last four years has been phenomenal. From around 90,000 twenty foot equivalent container units (TEUs) it handled in its first year, growth has jumped 420 per cent to more than 472,000 TEUs in fiscal year 2008.

Now as Haleem Siddiqui is increasing the number of quayside, rubber tired gantry and mobile harbor cranes in anticipation of increase in cargo handling, there is another challenge facing him.

“Ports are the barometer of an economy,” he said, adding that “We are the first industry to get hit when trade slows down and that has started happening.” These are mixed blessing for the maverick shipping man turned politician. Despite the obvious downturn, he says he is hopeful. From a man who has done so much, these are encouraging words indeed.


Source : The News

[B][CENTER][SIZE="3"]Pakistan and Iran to enhance economic cooperation [/SIZE][/CENTER][/B]
[B]
ISLAMABAD
(October 09 2008)[/B]

Pakistan and Iran agreed to enhance bilateral economic co-operation in various sectors including energy, railways, roads and trade besides realising the need for establishing Joint Shipping Company to boost maritime co-operation and mutual trade.

The issues related to enhancing trade were discussed during a meeting between Iranian Ambassador Mashallah Shakiri and Deputy Chairman Planning Commission, M. Salman Faruqui here. Speaking on the occasion, the Iranian Ambassador said that his country was ready to export electricity to Pakistan, adding that Iran was already working on Sahara hydel power project on the river Chenab and had raised its capacity from initially proposed 65 Mega Watts to 130 Mega Watts through IPP.

The Ambassador said that the present volume of trade between the two countries showed that the bilateral trade potential was untapped, adding that the volume of trade between Iran and other regional countries is significantly higher than that of Iran and Pakistan.

He pointed out that the main problem was lack of physical as well as institutional connectivity between the two countries and proposed to establish Pak-Iran Joint Shipping Company that would enhance connectivity leading to increase in bilateral trade.

He also showed his country's interest in enhancing the co-operation in banking sector by opening up branches of banks in each other's countries on reciprocal basis. Deputy Chairman Planning Commission, Faruqui told the ambassador that Pakistan was interested in importing electricity from Iran as Pakistan was currently facing power shortage.

He suggested bilateral negotiations to work out the modalities related to pricing and transmission and appreciated the proposal to establish a Joint Shipping Company to boost maritime co-operation and mutual trade. He promised to examine the proposal and said that Pakistan National Shipping Company would be asked to look into this matter.

Faruqui also underlined the importance of modern railroad between Quetta and Taftan. For this purpose, he said, funds could be raised together with Iran and by using the forum of Economic Co-operation Organisation or Islamic Bank. Both the sides agreed to increase co-operation in health services and pharmaceutical sector as well.

Faruqui informed the Ambassador that Planning Commission of Pakistan had good mutual relationships with its Indian and Chinese counterparts and it wanted the same level of institutional interaction with its Iranian counterpart.

The Ambassador appreciated this proposal and assured that Iran would welcome this institutional linkage that would further enhance business to business contacts for regional development. Secretary Planning Division, Suhail Safdar, Member Energy, Pervez Butt, and Member Infrastructure, Akram Malik were also present on the occasion.


[B]Copyright Associated Press of Pakistan, 2008[/B]


[B][CENTER][SIZE="4"]Gold rises another Rs900 [/SIZE][/CENTER][/B]

[B]Thursday, October 09, 2008[/B]

KARACHI: Gold spiraled by another Rs900 to reach Rs23,142 per 10 grams on Wednesday against Rs22,242 a day earlier as the rupee fell further against the dollar and international bullion rates rose.

The precious metal is at an almost three-month high and was valued at Rs27,000 per tola.

President All-Pakistan Supreme Council of Jewellers Association, Alhaj Haroon Rashid Chand said that the crisis in the global markets and the instability in the local economy were both taking their toll on the precious yellow metal which continued to hike in value.

Mohammad Kamran, a gold dealer in KDA said that several women had visited his shop demanding to sell their jewelry items. However, as gold continued to remain volatile, many gold dealers refused to purchase gold items as they wanted to wait and see where the precious metal would settle.

In the international bullion market, gold inclined by US$24 an ounce and stood at US$911 an ounce when it continued to gain on Wednesday as investors sought safer assets despite a coordinated rate cut by the world’s biggest central banks to calm battered international financial and equities markets.

[SIZE="4"][B][CENTER]IMF says Pakistan’s economic situation is fragile

[/CENTER][/B][/SIZE]
[B]Thursday, October 09, 2008
By Mehtab Haider[/B]

ISLAMABAD: Estimating Pakistan’s financing gap at $7 billion in the current fiscal year, the International Monetary Fund (IMF) has said the country’s macroeconomic situation is very fragile and further significant losses in reserves would make it vulnerable to a crisis.

IMF Macroeconomic Assessment Letter about financial health of the country’s economy given to the Asian Development Bank on September 28, which paved the way for the release of $500 million, states that IMF’s staff preliminary projection for 2008-09 based on a continuation of the prevailing monetary policy stance, expected external financing and revised oil prices, saw external current account deficit of $14 billion (7.7 per cent of GDP).

With capital inflows of about $7 billion, the IMF staff estimates external financing gap of $7 billion. “Given the difficulties involved in forecasting capital inflow in an unsettled macroeconomic environment, this financing gap is subject to a high degree of uncertainty,” the fund further states.

The fund staff believes that tax revenues should be increased by at least 3-4 per cent of GDP over the medium term (from 10pc of GDP in 2007-08) by broadening the base of the general sales tax to services, taxing commercial agriculture under the income tax, eliminating other tax exemptions and significantly strengthening tax enforcement. On prospects of real GDP growth for 2008-09, the IMF says that GDP growth is expected to slow further to about 4.5 to 5pc in the current fiscal year while average inflation is projected to increase to 16 to 17pc owing in part to the envisaged pass through higher international prices of energy and food.

The country has set inflation target at 12pc for 2008-09. Recently, the country’s authorities specified their policy plans for the current fiscal year and stressed their commitment to addressing macroeconomic imbalances and putting the economy back on a sustained path.

Moreover, following the recent increases in the discount rate and the adoption of policy of greater exchange rate flexibility, the authorities indicated that the SBP stood ready to take further actions in this direction, as needed. The authorities also committed to meeting the government’s domestic financing needs through market based instruments and ensuring that both borrowing from the SBP is zero on a net basis at the end of each quarter, the IMF noted.

The authorities have taken some measures to by adjusting fuel and electricity prices as well as slowing down the development spending, further measures are required to achieve the target of reducing the fiscal deficit to 4.7pc of the GDP.

On the expenditure side, the IMF says, the authorities need to move ahead with planned increase in electricity tariff and with larger than budgeted reduction in other outlays to offset the impact of potentially higher interest rates on the government’s debt servicing.

This will require removing other subsidies, containing other non-interest current expenditures and carefully prioritizing development spending, said the IMF.

The authorities should also ensure the implementation of targeted social protection mechanism to cushion the impact of lower subsidies on vulnerable groups.

Regarding revenue generation, the IMF says a stronger than envisaged effort is needed to broaden the tax base by eliminating some tax exemptions.

On the monetary side, the IMF mentioned the recent increases in interest rates have been insufficient to stem reserve losses and eliminate the central bank financing of the government.

If the SBP follows guidelines outlined by the IMF, rupee will further depreciate against dollar in coming days, said market analysts. The IMF says looking beyond 2008-09, a further fiscal effort, together with continuation of tight monetary policy and exchange rate flexibility, will be required to notch a sustainable current account position and bring down inflation.

In particular, strong tax and policy administration measures will be necessary to further reduce the fiscal deficit.

Source : The News

[B][CENTER][SIZE="4"]Minister urges closer economic ties with Iran [/SIZE][/CENTER][/B]


[B]LAHORE
(October 16 2008)[/B]

Senior Minister Punjab Raja Riaz Ahmad has said that Iran and Pakistan enjoy long standing brotherly relations, adding that these ties can grow stronger in the areas of trade and investment, agriculture, industry and energy resources.

He was talking to Saeed Kharazi, Consul General of Iran in Lahore, at his residence here on Wednesday. Punjab Minister for Sports and Culture Dr Tanveer-ul-Islam and a number of PPP MPAs were also present on the occasion, says a handout.

Raja Riaz observed that Pakistan and Iran have common interests in South Asia. The democratic Pakistan government is working to bring Pakistan out of the quagmire of terrorism and poverty by increasing economic opportunities for the people.

He regretted that no new dam was developed during the last decade, adding that the provincial irrigation department has identified 317 suitable points on barrages/canal falls where small hydel power stations can be set up to produce 600 megawatt electricity.

Commenting on the ongoing visit of President Zardari to China, the minister maintained that it will open up new avenues of bilateral co-operation and joint ventures between the two countries. Pakistan government wants friendly relations with its neighbours, he said, adding that investors should avail the lucrative new investment opportunities in Pakistan and enhance economic co-operation between Pakistan and Iran.

The Iranian Consul General Saeed Kharazi said that Iran can help Pakistan fulfil its energy needs as Iran is producing 35,000 megawatt electricity, and observed that its nuclear energy programme is for peaceful purposes. He said that the Iran, Pakistan and India joint gas pipeline project is of vital importance for Pakistan with its increasing energy needs.

The Consul General told that an exhibition of Iranian goods will soon be held in Lahore and informed that the Governor of Mashhad province of Iran will also visit Lahore to further cement bilateral ties. He said Iran wants to enhance co-operation in the fields of agriculture and industry as Punjab has vast potential of investment in these sectors.


[B][CENTER]Copyright Associated Press of Pakistan, 2008[/CENTER][/B]


[B][CENTER][SIZE="4"]Law and order, energy crisis: FPCCI announces shutter down in Punjab on October 25 [/SIZE][/CENTER][/B]


[B]LAHORE
(October 16 2008)[/B]

The Federation of Pakistan Chambers of Commerce and Industry Zonal Chairman and Vice President Azhar Saeed Butt on Wednesday announced complete shutter down strike in Punjab on October 25 against the worsening law and order situation, energy crisis and terrorism.

Azhar Saeed Butt who is also President of Qaumi Tajir Ittehad, said that the country is facing severe financial crisis due to bomb blasts and terrorist activities taking place all over the country. "Bomb blasts have become order of the day in the country, especially in the NWFP and Fata and Pakistan is facing worst financial crisis. Our economy is on the verge of collapse, he said while addressing 4th meeting of the zonal committee here.

Former FPCCI President Iftikhar Ali Malik, Khawaja Khawar Rashid, Nadeem Bhatti, Tahir Malik, Adil Mahmood, Aziz ur Rehman Chan and Usama Ahsan, besides large number of traders and industrialists from across the country were also present on the occasion.

Butt said that the depreciation of the rupee is badly hitting our economy and the survival of our economy depends only on peace and better economic policies. The government has failed to stabilise the rupee against the US dollar that has resulted in the collapse of our economy, he added. He said the government has also failed to resolve the problems being faced by masses.

He said that Director General Trade Organisation and the Ministry of Commerce had not issued licences to many trade bodies of more than 70 years old. He said although trade organisation ordinance and rules have lost its value due to non-presentation in the parliament but even then the DGTO is putting hurdles in the way of issuing licences to genuine trade bodies.

He said that bureaucracy is dealing with the business community roughly as the staff of the collectorate of customs had beaten President of Clearing Agents Association, Khawaja Shahid, over a petty issue of customs duty at Lahore dry port which has created a sense of insecurity among traders. He demanded of the government to suspend the Collector Customs, Lahore and order impartial inquiry to provide justice to the victim.


[B]Copyright Business Recorder, 2008[/B]

GEO Business
 

Updated at: 0119 PST, Wednesday, October 15, 2008
[IMG]http://www.geo.tv/10-15-2008/eng/10-15-2008_26915_l.gif[/IMG] KARACHI: The Board of Directors of Karachi Stock Exchange (KSE) in its meeting on Tuesday decided to remove the “floor mechanism” from October 27.

A KSE statement issued here on Tuesday said the normal trading parameters of five per cent upper and lower circuit breakers will be imposed from that day onwards.

It said over the past few weeks, the KSE has been in active consultations with the Ministry of Finance, SECP, State Bank of Pakistan and other stake-holders to develop a set of measures for achieving market ability.

In this context three critical areas were identified namely Liquidity, Risk Management and Restoring Investor Confidence.

The statement further pointed out that the Board of Directors of the KSE met on Tuesday to review the progress made on these efforts and noted that some recommendations have been implemented (for example announcement of Buy back of shares, Reduction in CRR) while other recommendations (for example Equity Fund, Put Options, change in CFS margining regime, etc.) are being processed.

The respective authorities like Ministry of Finance/ SECP will announce the final details of all the stabilisation measures.

The statement said the Board has decided to remove the “floor mechanism” from the KSE from October 27, 2008.

Normal trading parameters of 5% upper and lower circuit breakers will be imposed from that day onwards.

The statement further said the Board of Directors has been informed that the Ministry of Finance and SECP will implement the full set of stabilisation measures prior to October 27, 2008.

[B][RIGHT][CENTER][SIZE="4"]Pakistan and India open Kashmir trade today [/SIZE][/CENTER][/RIGHT][/B]

[B]OCCUPIED SRINAGAR
(October 21 2008)[/B]

India and Pakistan are due to start trading on Tuesday between their divided zones of Kashmir, raising hopes that the revolt-hit region could see a major drop in tensions. It will be the first time that trucks will roll between the two zones created in the bloody aftermath of independence of the subcontinent from Britain six decades ago, when the region was split into India and Pakistan.

"The step will go a long way to cooling tempers in Indian held Kashmir," said Tahir Mohiudin, the editor of Urdu-weekly Chattan in held Kashmir, where a insurgency has raged since 1989.

The countries, who have fought two of their three wars over Kashmir, are to resume trade across the heavily militarised Line of Control, a key demand of Kashmiris who this summer led some of the largest-ever anti-India demonstrations in the region. The weeks of protests began over a row to provide land to a Hindu pilgrim trust, sparking Muslim anger.

A government decision to reverse that order because of the anger then prompted a punishing blockade by Hindu hard-liners of the only road linking the held Kashmir valley with the rest of India. "Opening the trade route to Pakistan will have a psychological impact. It will create a confidence in people that even if the Indian route is shut, they have an alternate route (for trade)," Mohiudin said.

Anything calming tensions would be good news for Indian authorities, who announced plans on the weekend to press ahead with polls in Indian Kashmir later this year despite the recent upheavals in the state.

The business community is delighted at the move. "I'm hopeful I'll be doing business soon with people in Azad Kashmir and Pakistan," said Abdul Hameed, who owns an electrical generator company. Business leaders from the divided zones have already met in held Kashmir to discuss the opening of trade. Hameed said the blockade convinced them of the need for an alternative trade route.

The first link to be opened Tuesday will be between occupied Srinagar and Muzaffarabad. The route to Muzaffarabad was the scene of a massive demonstration in early August during the blockade when 100,000 protesters marched toward the Line of Control, intending to cross over.

A prominent Kashmiri leader and four other protesters were shot dead when Indian forces halted the marchers. The second trade route, expected to be opened at a later date, connects Poonch in southern Indian held Kashmir with Rawalkot village in Azad Kashmir. A bus service was launched between the two sides in 2005, the first fruit of a peace process begun the previous year by the two countries.

The opening of the trade between two parts of the disputed region will go a long way toward building confidence among the Kashmiri traders, who suffered losses due to the recent economic blockade. "The blockade created fear. If it happened once, it can happen again," said Amin-bin Khaliq, adding he suffered big financial losses over the summer as he couldn't export dry fruit in time.

"India is a good market but if we're able to sell our goods in Azad Kashmir it will be a huge bonus," said Khaliq. Kashmiris have welcomed the opening of the trade route. "The time has come when we should move forward towards economic as well as political freedom," said Mirwaiz Umar Farooq, adding the route could turn out to be a "first step towards a political resolution" of the Kashmir issue.

[CENTER]
[B]Copyright Agence France-Presse, 2008[/B][/CENTER]
[B]
[CENTER][SIZE="4"]
Boucher warns no blank cheque for Pakistan [/SIZE][/CENTER]
FIDA HUSSAIN

ISLAMABAD
(October 21 2008)[/B]
US Assistant Secretary of State for South Asia Richard Boucher has said that Pakistan would not get aid in cash from Friends of Pakistan (FoP) and forum's meeting would deliberate on alternate modes of assistance. He stated this while addressing a news conference following the meeting with Prime Minister Yousuf Raza Gilani and foreign minister Shah Mehmood Qureshi here on Monday.

The US diplomat made this assertion at a time when representatives from FoP countries held a preliminary meeting with President Asif Ali Zardari, which was also attended by Prime Minister Gilani. Boucher said there is no lack of trust between the leadership of the two countries as US has extended its full support for the democratic process. Referring to his meetings with President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani, he said these were very useful and fruitful interactions.

According to IMF estimates, Pakistan, which has been playing frontline state in the US-led war on terror for the last seven years, needs $10 billion within two years to avert a default. "There will be systematic support to Pakistan from FOP group for various projects," Boucher said without giving any further explanation.

The US diplomat also made it clear that Washington is not supportive of the idea of holding talks with militants who lay down their arms. This disclosure also came at a time when the joint sitting of the parliament is discussing the war on terror policy.

"There should be no negotiations with any involved in terrorist activities even in his past," he added. Boucher asked all the political forces and the people to unite against terrorists. "This is essential for having political will and determination to wipe out terrorism," he added.

He said his visit to Pakistan is aimed at follow up of the meetings between President Bush and President Asif Ali Zardari held in New York to assess how US can be more helpful to Pakistan to face the present security and economic challenges.

Boucher expressed concern on the attack by the terrorists on the peace loving people, government officials and security institutions killing innocent people. Boucher referred to the previous deal with the Taliban and added that it had proved a "total failure".

Appreciating the courage and determination of the people of Tribal areas, he said they have shown great courage but they are being killed by the terrorists. He especially mentioned the killing of over 150 elders the last couple of months in various suicide attacks in the tribal areas.

"Terrorism is a threat to Pakistan, Afghanistan and to whole world," said Boucher while appreciating the bold steps taken by Pakistan recently against the terrorists in the Tribal Areas.

Replying to a question, he said, the training of Frontier Constabulary in NWFP is on-going co-operation between the two countries. He said America has already announced $110 million for the help of those who have been displaced due to the disturbed situation in the tribal areas.

Regarding energy crisis being faced by Pakistan, Richard Boucher said US has been extending help to Pakistan for alternate sources of energy. He said Pakistan has great potential for various types of energy including coal and assured the US would extend help in exploring these sources of energy.

Meanwhile, Foreign Minister Makhdoom Shah Mahmood in meeting with Boucher reaffirmed Pakistan's commitment to work closely with the international partners in war against terrorism.

Qureshi noted that the third session of Pakistan-US Strategic Dialogue, held in Washington in September 2008, had contributed substantively to the two sides' efforts towards deepening bilateral co-operation in diverse areas and building a broad-based and long-term relationship.

Pakistan-US co-operation in the field of counter-terrorism was also discussed during the meeting. The foreign minister highlighted government's three-pronged strategy - combining political, economic development and security tracks - and reaffirmed Pakistan's firm resolve to combat terrorism and extremism. He underscored that Pakistan desired a peaceful and stable Afghanistan. He noted that the forthcoming visit of the Afghan foreign minister as well as the mini Jirga meeting in Islamabad would help move the process forward


[CENTER][B]Copyright Business Recorder, 2008[/B][/CENTER]

[B][CENTER][SIZE="4"]Saudi Arabia to support Pakistan in all economic sectors[/SIZE][/CENTER][/B]

[B]
RECORDER REPORT

ISLAMABAD
(October 25 2008)[/B]

Ambassador of Saudi Arabia Ali Saeed Mohammad al-Awad Assery has said that the government of Saudi Arabia is ready to support Pakistan in all sectors of the economy.

During a meeting with Dr Fehmida Mirza, Speaker National Assembly on Friday, the Ambassador stressed the need for spreading the true message of Islam through placing appropriate people on the pulpit for curbing extremism from the Muslim World.

The Saudi Ambassador also handed over a letter from Imam-e-Kabah Dr Saleh Bin Abdullah in which Imam-e-Kabah condemned the Islamabad explosion on his behalf and on behalf of the Members of Shura Council of Saudi Arabia. The Imam-e-Kabah Dr Saleh Bin Abdullah Bin Humaid expressed his sympathies for the affected families and prayed for the departed souls.

While talking to the Ambassador at the Parliament House, Dr Fehmida Mirza said that Saudi Arabia has always supported Pakistan in difficult times and is also expected to play a leading role in the Group of Friends. She said that new government was facing many challenges, which could be overcome with the support of friendly countries like Saudi Arabia.

She said that the adoption of unanimous resolution by all political parties on the issues of national security and curbing terrorism was a landmark achievement of the Parliament and has sent a clear message to all that the whole nation was united on issues of national importance. She said that the resolution in fact envisages change in the course of history. The Speaker said that stable and strong Pakistan was necessary for stability of the region. She said that Pakistan was pursuing a multi-pronged policy including dialogue, development and determination to end terrorism and extremism from the country. The Speaker informed the Ambassador that the Speaker's Relief Fund for the internally displaced people of Bajaur and Fata has been established to provide them relief and rehabilitation. The Speaker further informed that the fund was established with the consent of the House and a committee comprising parliamentarians was formed to oversee and handle the relief work.

[B][CENTER]
Copyright Business Recorder, 2008[/CENTER][/B]

[B][CENTER][SIZE="4"]'Great potential to boost economic ties between Pakistan and Canada' [/SIZE][/CENTER][/B][B]

ISLAMABAD
(October 25 2008)[/B]

Pakistan and Canada need to reinforce their bilateral economic relationship, specially trade and commercial exchanges for which there is a great potential, High Commissioner to Canada, Musa Javed Chohan said while addressing the ambassador's roundtable organised by the prestigious institution the Norman Patterson School for International Affairs at the Carleton University in Ottawa.

Chohan said that with a population of approximately 165 million people, Pakistan offers an attractive and huge market for Canadian exports and investments. "Foreign investment is critical to our endeavours to maintain our economic growth rate of 7 percent so necessary to meet the requirements of our burgeoning population," he added.

Highlighting Pakistan's contributions in the war against terrorism, Chohan said Pakistan was fighting the war against terrorism in its national interest and making every possible effort to eliminate this scourge from the globe. He said peace, stability and security in Afghanistan were crucial for Pakistan. Without stability in Afghanistan there cannot be stability in Pakistan.

Pakistan was providing $300 million for Afghanistan's reconstruction, besides offering 1000 scholarships for training of Afghan cadres. He said Pakistan was following a policy of constructive engagement with the Karzai government. Pakistan has deployed 100,000 troops to fight terrorism, which is more than the collective presence of international troops, deployed across Afghanistan.

Chohan said there were institutional frameworks available for co-ordinating military actions in Afghanistan such as the Tripartite Military Commission. As far as Pakistan was concerned, it will continue its efforts to eradicate the menace of terrorism and extremism, which affects the fabric of body politics. Chohan appreciated the sacrifices made by Canada in the war against terrorism. He said Canadian involvement and troops presence in Afghanistan added another perspective to Pakistan-Canada relations.

He said Pakistan was firm in its commitments to Afghanistan and hoped that other nations involved were equal in their resolve. Talking of bilateral relations, he said there was a strong political will at the highest level to further strengthen and broaden Canada-Pakistan relationship. The function was attended by Canadian Academia, intelligentsia and media persons

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[CENTER][B][SIZE="4"]Grants for social sector areas: Pakistan and US sign $339 million agreements[/SIZE][/B][/CENTER]


[B]RECORDER REPORT

ISLAMABAD
(October 25 2008)[/B]

Pakistan and USA on Friday signed agreements, worth $339.10 million, on strategic objective grant to be spent in areas of economic growth, education, governance, health, population welfare, earthquake reconstruction programme and Fata development programme during fiscal year 2008-09.

Under the strategic objective grant agreements, for Education Sector Support Programme US Government has committed to provide $128.9 million. This contribution will strengthen and improve basic education and higher education programme. It will further enhance the need and merit-based scholarships programme with the collaboration of Pakistan Higher Education Commission.

The financial assistance under Governance to the tune of $23.2 million will be spent for improvement of justice system, civil participation and media freedom, improvement in electoral process and decentralisation programme. Similarly, the amount allocated for Health & Population Welfare of $76.5 million will ensure improvement of reproductive hea1th, HIV Aids, tuberculosis, maternal and child health and water supply & sanitation in different parts of the country.

The financial assistance under economic growth amounting to $43.5 million will ensure the economic stability in the areas such as trade & investment, infrastructure, agriculture, private sector competitiveness and strengthening of micro enterprises productivity.

Under Earthquake Reconstruction Programme the Government of United States has committed to provide $48.5 million. The said contribution will further enhance the technical assistance & capacity building in the affected areas and will also be utilised for construction and procurement.

In September 2007, US Government had approved huge package assistance for Fata Development amounting to $750.0 million over a period of five years (2007-2012). Last year, US Government provided $73.0 million under this programme, whereas now $20.5 million will be disbursed during the year 2008-09. The funds under this programme would be utilised for capacity building of Fata Secretariat and other government institutions for service delivery, good governance, infrastructure, economic growth, micro enterprises development, health arid education.

Earlier, Anne Aarnes, Director, USAID/Pakistan and Farrukh Qayyum, Secretary, Economic Affairs Division, signed these SOGA Amendments on behalf of their respective governments, whereas James Kunder, Acting Deputy Administrator of USAID, Gerald Feierstein, Deputy Chief of Mission, US Embassy, Islamabad and Shaukat Tarin, Adviser to Prime Minister on Finance, Revenue and Economic Affairs signed the agreements as witnesses.


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[B][CENTER][SIZE="4"]Soft loan to industrialists for generating electricity urged[/SIZE][/CENTER][/B]

[B]
RECORDER REPORT

ISLAMABAD
(October 25 2008)[/B]

Government should give special incentives and soft loans to Industrial sector and motivate them to generate their own electricity and help country at this hour of need, said Senator Talha Mehmood, Chairman, Senate Standing Committee on Interior. He said this while talking to a group of journalists here on Friday..

He said that 12 to 18 hour long power breakdown have forced the industrialists to lock their factories and units and put a negative impact on productivity of the country."

He stressed the need of immediate initiation of construction work on big dams on which people have complete consensus, besides working on small projects to provide immediate relief to masses.

He criticised the load-shedding policy of the government and said that this would have negative impacts and result in worst law and order situation. "People would have no other option to come in streets and start loot and arson," he added. Government should work on war footing to address the current power crisis and reduce the power tariff to give relief to the people, Talha Mehmood said, adding that government should adopt both short and long term policies to address the power crisis to bail out country from this darkness.

He said that load-shedding has jammed the wheel of industry and has brought the economy to a stand still and forced people to come out in streets to protest. "Factories and other small industries were closed due to long power breakdowns, which have rendered thousands of people jobless", he added.

"I am shocked over callous attitude of Wapda, as there was no load-shedding during the holy month of Ramazan and every thing was normal, but soon after Ramazan passed country plunged into darkness," Talha said. He also said that the mismanagement of Wapda and other concerned institutions has brought Pakistan in to dark age. Government should take serious note of the situation and save the country from complete disaster, he concluded.


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[B][CENTER][SIZE="4"]'Expo-Pakistan 2008' starts today [/SIZE][/CENTER][/B]

[B]ANWAR KHAN

KARACHI
(October 27 2008)[/B]

The country's largest trade show, 'Expo-Pakistan 2008', which is expected to receive around 500 foreign visitors and expatriates amid an airtight security, is being held from October 27 to 30 at Karachi Expo-Centre. The Trade Development Authority of Pakistan (TDAP) is the official organiser of the show, which will be inaugurated by Federal Defence Minister Ahmed Mukhtar.

He will also hold a press conference. Although, there will be no seminars or workshops during the event, the participating companies will sign MoUs. Rafeo Shah, Director Expo-Pakistan, TDAP, told Business Recorder on Saturday that the government has done the spadework for watertight security for the event.

He said that assistance has been sought from police, rangers and Sindh home department to provide maximum security. "The government has taken maximum precautionary measures to ensure sound security to the participants of the show. "Participants are also visiting from Britain and the US," he added.

Asim Siddiqui, Chief Executive Officer of Pegasus Consultancy, event manager, said that intelligence and law enforcing agencies would be responsible for security. He said that about 500 visitors including European, South and North American, Middle and Far East have confirmed their participation.

"The major countries are UK, Spain, France, Japan, Arab countries, China, Brazil, Mexico, US, Bangladesh, Sri Lanka and Morocco are taking part besides the expatriates. Bangladesh will represent the largest delegation in the event," he said.

Over 400 exhibitors will displays their products including textile garments, sports, surgical instruments and food items, he said, adding that three foreign exhibitors - two from Sri Lanka and one from Poland--will also display products. Over 650 stalls are being set up, while many interested parties are on the waiting list.

TDAP has given maximum concessions on stall bookings to participants from far-flung and underdeveloped areas of the country including Azad Kashmir and interior parts of all provinces to increase the volume of country's exports.


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[B][CENTER][SIZE="4"]UK businessmen keen to invest in Pakistan: Sindh chief minister informed[/SIZE][/CENTER][/B]

[B]KARACHI
(October 27 2008)[/B]

Pakistan High Commissioner in Britain, Wajid Shamsul Hassan, called on Sindh Chief Minister, Syed Qaim Ali Shah, here at the Chief Minister House on Sunday.

They remained together for sometime and discussed matters of mutual interests. Wajid Shamsul Hassan informed Syed Qaim Ali Shah that with the people's government coming to power in Pakistan, our ties with Britain have strengthened further. He also informed the Sindh chief minister about the interest of the British businessmen regarding investment in Pakistan.

Qaim Ali Shah on the occasion apprised Wajid Shamsul Hassan of the projects that have been initiated in the light of the manifesto given by Shaheed Mohtarma Benazir Bhutto. He also informed that the government has started Shaheed Benazir Bhutto Youth Development Programme whereby over 40,000 youth will be imparted technical training and in the meantime they will be given stipend in the range of Rs 4,000 to Rs 10,000.


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[B][CENTER][SIZE="4"]'Pakistan has potential to enhance trade with Turkey' [/SIZE][/CENTER][/B]

[B]RECORDER REPORT

ISLAMABAD
(October 30 2008)[/B]

Pakistani business leaders and Industrialists in MUSAID International Trade Fair and International Business Forum in Turkey used this forum to attract the businessmen and investors of more than 60 participating countries to take advantage of attractive investment opportunities in different sectors of Pakistan.

"Our efforts were to make sure that Pakistan could get maximum investment in this critical phase of its history", said Muhammad Ijaz Abbasi, ICCI President after his return from Turkey on Wednesday.

The ICCI President said MÜSIAD is an Independent Industrialists and Businessmen's Association and MÜSIAD International Trade Fairs promise to give the indispensable means of increasing sales, expanding to the promising markets. He said MÜSIAD has the potential to continue to initiate prosperous commercial opportunities for the enterprising business entrepreneurs who are willing to take part in its fairs.

He said many sectors of the economy like machinery, computers, automation, automotive, spare parts and electrical goods, textiles, garments, leather and carpets, construction, furniture and building materials, food, beverages, packaging and service sectors get representation in this trade fair to explore more business opportunities.

Speaking about the opportunities of further enhancing bilateral relations between Pakistan and Turkey, ICCI President said Turkey ranks 3rd in the world glassware production and 6th in the world textiles and garments production while Turkey's production capacity ranges from food industry to hi-tech based products such as F-16 warplanes and electronics.


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[B][SIZE="4"]Abu Dhabi meeting: Fehmida hopes Germany to support Pakistan [/SIZE][/B][/CENTER]

[B]RECORDER REPORT

ISLAMABAD
(October 30 2008)[/B]

The Speaker, National Assembly, Dr Fehmida Mirza was optimistic that Germany will support Pakistan in the 'Friends of Pakistan' meeting to be held in Abu Dhabi next month for overcoming fiscal and external deficits as it helped in strengthening democracy. She said this to a four-member delegation of German parliamentarians led by its MP Ute Koezy on Wednesday.

Fehmida said that Pakistan was committed to eradication of extremism and terrorism to give peace and stability a chance. She said that only addressing the root causes could eliminate the scourge of extremism and terrorism. The NA Speaker said, the issues of poverty, unemployment, illiteracy and provision of infrastructure for development need to be tackled to curb extremism.

'Adoption of unanimous resolution by all political parties on the issues of national security and curbing extremism, was a big achievement of the Parliament and will go a long way in curbing the menace of terrorism,' she maintained.

She apprised of the delegation about the functioning of the parliament and NA Standing Committees, where women avail of substantial representation. She said that awareness among women in the country is high and they are possessing important slots in various departments.

Furthermore, women should be empowered economically and politically for protection of their rights, she said adding that Pakistan has the distinction of having first women prime minister and first women speaker in the Islamic World and the response from the Islamic Ummah in this regard was encouraging.

Underlining the role of women in development, the Speaker said that no society could prosper ignoring its women population and stressed the need for meaningful legislation to bring a pragmatic change in the lives of womenfolk. The Speaker also said that she was working on formation of women caucus in parliament and very soon, a steering committee comprising of all women parliamentarians in the NA will be constituted to work for women's welfare.

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[CENTER][B][SIZE="4"] Pakistan's foreign exchange reserves fall below $7 billion mark [/SIZE][/B][/CENTER]

[B]
RECORDER REPORT
KARACHI
(October 31 2008)[/B]

Country's foreign exchange reserves have further plunged by some 401 million dollars during the last week and fell below 7 billion dollars mark aggravating the threat to the economy. State bank of Pakistan on Thursday informed that country's foreign reserves have declined to 6.9218 billion dollars during the week ended October 25, as against the 7.3233 billion dollars a week earlier, depicting a decline of 401.5 million dollars during the week.

A major decline has been witnessed in the State Bank's reserves, showing a decline of 323 million dollars during the previous week and came to below the four billion dollars mark. The SBP reserves stood at 3.7138 billion dollars on October 25, as compared to some 4.0368 billion dollars on October 18, 2008.

The reserves held by bank also show a negative trend during the last week and banks overall foreign reserves declined to 3.208 billion dollars that previously stood at 3.2865 billion dollar a week earlier. Depicting a decrease of 78.5 million dollars during a week.

It may be mentioned here that after the imposition of the state of emergency in the country, foreign reserves have been continuously on decline and now has been reached at lowest level of 6.91 billion dollars. Economists said that declining trend in the foreign reserves need some new and speedy measures to maintain the foreign reserves.


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[B][CENTER][SIZE="4"]Expo Pakistan may yield $100 million export order [/SIZE][/CENTER][/B]


[B]RECORDER REPORT
KARACHI
(October 31 2008)[/B]

Chief Executive Trade Development Authority of Pakistan (TDAP) Syed Mohibullah Shah has said as a result of Expo Pakistan, international buyers would ink export agreements of $100 million. Addressing a press conference on concluding day of Expo Pakistan, he said that the international importers have signed memorandum of understandings and trade agreements of $50 million, while $50 million deals would be matured later.

"In addition to this a Korean company has inked $10 million trade agreement of ethanol," he added. He said that the delegated from Sweden, US, Spain, South Africa, France, Malaysia, Romania, Bangladesh, Argentina, Morocco, South Korea, Hong Kong and others have shown their interest in textile, handicraft, rice, lather, industrial garments, surgical instrument and other sectors.

Regarding the law and order situation, Mohibullah Shah said, the delegates have expressed their satisfaction, adding that even the delegates went for shopping and picnic, which negates the international propaganda regarding the law and order situation of Pakistan.

He asserted that it also proved the travel advisories issued by different countries to their citizen as wrong. He said that TDAP arranged visits of the foreign delegates to other industrial cities including Lahore, Gujranwala, Sailkot and others. He said that the exhibition brought largest number of exhibitors from every nook and corner of the country and it has also brought in large number of buyers from over 50 countries.

"For the first time the entire commercial space for stalls were occupied by 408 exhibitors, who have displayed a wide range of agricultural, industrial, engineering, textile, jewellery, minerals and a wide range of handicrafts including rugs carpets, surgical instruments, sports goods and many other products of Pakistan," he added.

Chief executive TDAP said this year Expo Pakistan also introduced several new exporters especially SMEs, who are real backbone of country's economy being the largest employers. He said that Expo Pakistan provided "direct marketing" opportunities to Pakistani producers and exporters by bringing in large number of foreign buyers and local sellers under one roof for four days.

This method of direct marketing eliminates 2nd and 3rd tire of middlemen, adding by providing this direct marketing opportunity in Expo Pakistan, TDAP had enabled Pakistani producers to get better prices. "Expo Pakistan has also opened up new opportunities for expanding trade and investment and exports from Pakistan, while the numbers of foreign buyers have shown keen interest in investment in export oriented products of Pakistan," he added.

This interest has been confirmed in their meeting with TDAP in areas such as agro food and food processing, halal food, industrial garments, cold storage, packing, canning and processing of new food products, processing of new product developed from fruits and vegetables, surgical instruments etc.

Shah said that some foreign delegates have also shown interest in setting up showrooms and warehouses of Pakistani products in their own countries and they are willing to make their own investment in setting up such facilities.

He informed media that number of foreign buyers also indicated their interest in setting up their own subsidiaries companies in Pakistan so that they could regularly keep purchasing Pakistani products round the year, in addition to attending these exhibitions.

He said that TDAP is mulling to construct a new exhibition hall, so that congestion in future is avoided and many more exhibitors of Pakistani products could be accommodated. He said that keeping interests of buyers in exhibition especially in textile sector in view, TDAP would hold textile and clothing exhibition. "The next Expo Pakistan would be held in month of October 2009," he informed.


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[B][CENTER][SIZE="4"]Wide scope to increase trade with Pakistan: Turkish CG[/SIZE][/CENTER]

RECORDER REPORT
KARACHI
(October 31 2008)[/B]
The bilateral trade volume between Pakistan and Turkey has touched $600 million mark and there is much potential to increase the economic relations. These views were expressed by Fethi Etem, the Consul General of Turkey in Karachi while talking to media at a ceremony on the occasion of 85th anniversary of the proclamation of the Republic of Turkey held at his resident here on Wednesday.

He said that Pakistan and Turkey are two brotherly countries and enjoying very good relations. He said that the event is being held on the occasion, when the Prime Minister of Pakistan Syed Yousuf Raza Gilani was in Turkey on his official visit. He said that this visit would increase the already good relations between the two brotherly countries.

He said that there are many sectors, in which bilateral trade could be increased by both sides. Sindh Governor Dr Ishratul Ebad Khan was the chief guest. Speaker Sindh Assembly Nisar Khuro, Provincial Minister Agha Siraj Durrani, a number of diplomats, political leaders and other dignitaries attended the event.


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[B][CENTER][SIZE="4"]Foreign investment of $15,574 withdrawn equity market [/SIZE][/CENTER]

RECORDER REPORT
KARACHI (November 09 2008)[/B]

An outflow of $15,574 of foreign investment was witnessed the country's equity market during the outgoing week ended November 07, 2008. According to the National Clearing Company of Pakistan Limited (NCCPL) data, the cumulative figure of this mode of financing stood at negative $337.778 million in the current calendar year January 01, 2008 to November 07, 2008.

"The foreign investors opted to offload their holdings during the week on their concerns over the prevailing economic situation and uncertainty on removal of floor mechanism", analysts said. The week started on a positive note as an inflow of $182,643 was witnessed on Monday, however, this trend could not continue as the foreign investors withdrew $29,312 on Tuesday.

The negative trend continued as an outflow of $252,913 was recorded on Wednesday and the offshore investors withdrew $201,288 on Thursday. A positive trend was witnessed on the last day of the week as an inflow of $284,175 was seen on Friday.


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[B][CENTER][SIZE="4"]Ecnec approves 11 projects [/SIZE][/CENTER]

RAJA AQEEL
ISLAMABAD (November 09 2008)[/B]

The Executive Committee of the National Economic Council (Ecnec) has approved eleven projects in infrastructure, education, energy, security and rural uplift sectors in its meeting held recently, sources told Business Recorder on Saturday. It has given go-ahead for setting up of Pak-China Friendship Centre, costing Rs 2519 million as a gesture to cement the deep-rooted Sino-Pak ties.

A Chinese company has started construction of the centre and Rs 287 million were spent on purchase of land and preliminary works. The centre will include hall, exhibition centre, multipurpose hall, hostel and a library. Basically, the project is being undertaken to promote tourism through projection of culture.

It will also provide opportunities for income generation along-with promoting Pakistani culture through institutional arrangements. Development projects for Sindh: The Ecnec also gave go-ahead for Phase-II of Japanese-assisted rural road construction project under which 500 km rural roads in various districts of Sindh will be constructed 2008 to 2013.

The project will cost Rs 5114 million, of which Japan Bank International Co-operation (JBIC) will provide a loan of Rs 4729 million, whereas Sindh government will spend Rs 385 million. This project is continuation of an agreement between Pakistan and JBIC for construction of 3000 km rural roads in Pakistan.

The project will provide better access to market and alleviate poverty to improve socio economic condition of the poor people. It will also help reduce unemployment and under employment in the rural areas.

[B]SINDH CITIES IMPROVEMENT PROGRAMME:[/B] To improve urban infrastructures for creating better economic opportunities in Sindh through reforms and investment, promoting services delivery system, costing $400 million, of which ADB will provide $300 million, whereas Sindh government will share $100 million.

The project will provide clean drinking water supply in areas where availability is inadequate and develop sanitation facilities to improve environmental health through increased investment in water supply and sanitation sub-sector in six secondary cities of Sukkur, New Sukkur, Larkana, Khairpur, Shikarpur and Rohri. It will be completed in 10 years and about 4 million people will benefit.

Similarly, Ecnec has approved revised projects for conversion of 135 km long existing metre gauge railway track into broad gauge track Mirpur Khas to Khokhropar. The link connects the existing Karachi-Hyderabad-Mirpur Khas with Indian railways network. The cost of the project will be Rs 1860.17 million.

[B]PROJECTS FOR FATA/NWFP[/B]: The meeting also approved project for training and support of Levy forces in FATA at a cost of Rs 558.89 million, out of which US grant is Rs 546 million, whereas Rs 12.89 million is the local component. The project envisages provision of essential infrastructure to station the law enforcement agencies (Khassadars, Levies and FC) at strategic location at the junctions of FR Kohat, FR Peshawar and Khyber Agency to have integrated and co-ordinated force.

[B]PRIMARY EDUCATION IN FATA: [/B]The Ecnec approved another project costing Rs 657.00 million for promotion of primary education, with the assistance of World Food Programme in Mohmand Agency and Landi Kotal tehsil of Khyber Agency in FATA.

Under this project, flour, vegetable oil and biscuits will be provided as incentive for parents to send their children for schooling. The donor agencies, especially World Food Programme is assisting Pakistan to achieve Millennium Development Goals (MDGs), universal primary education, implementation of Saarc action plan and reduction of gender gap.

[B]KARAKORAM INTERNATIONAL UNIVERSITY, GILGIT:[/B] The meeting also approved establishment of Karakoram International University, Gilgit worth Rs 449.792 million. Presently, the university has no proper campus and it will be constructed in Gilgit to enhance the access of the people of the Northern Areas to higher education. The project will be funded through Federal PSDP.

[B]NEW MINERAL SERVICE SCHEME:[/B] A scheme sponsored by Pakistan Atomic Energy Commission (PAEC) for exploration of minerals has also been approved by the Ecnec. The estimated cost of the project is Rs 1085.395 million, including foreign exchange component of Rs 486.018 million.

The project aims at establishment of additional Reasonable Assured Reserves (RAR) of uranium and other nuclear minerals to meet nuclear fuel requirements of the country to generate electricity. Under this project, detailed geological mapping, drilling, test-mining operations and collection of samples and their testing etc would be carried out. It would help in establishing techno-economic parameters of various mineral deposits in the country.

The survey will cover twenty (20) major geological rock formations located in Punjab, Balochistan, NWFP, FANA and FATA. It will be completed in five years (2008-13).

[B]Bagh City Development Project, AJK:[/B] For reconstruction and rehabilitation of earthquake damaged infrastructure the Ecnec has given approval of Bagh City Development project, costing Rs 7.00 billion as part of Erra's Urban Development Programme. The project will be implemented in 10 years in two phases.

Similarly, the Ecnec also approved Rawalakot City Development project worth Rs 8 billion, of which Saudi government will give 4.00 billion in the form of soft loan. The umbrella project includes 48 infrastructure development schemes seismic safety.

[B]NHA TO CONSTRUCT ROADS/BRIDGES THROUGH PUBLIC-PRIVATE PARTNERSHIP[/B]: The Ecnec has approved construction of a 2-lane, 600 metres long bridge across the river Sutlej at Emanwala near Multan, worth Rs 1147.77 to be completed in 22 months.

The bridge will connect Multan with N-5 through the existing provincial road through Jalalpur Pirwala and Uch, whereas it will be maintained through toll tax. Similarly, the Ecnec approved construction of high level bridge over Chenab River Head Muhammad Wala, district Multan, at a cost of Rs 2376.8 million, to be completed in 3 years (2008-11).

[B]DUALISATION/REHABILITATION OF THE LARKANA - MOEN-JO-DARO ROAD[/B]: The project has also been approved with a cost of Rs 1931.1 million to be completed in 22 months. The project includes upgradation of existing 2-lane road through 4-lane, including reconstruction of 8 bridges. The road connects Larkana city with Moenjodaro Airport.

NHA will execute the above-mentioned project and the project will be funded through federal/NHA PSDP subject to federalisation, otherwise 50:50 cost sharing will be done by federal and provincial government. IPDF will explore private sector investment for the project.


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