Pakistan Economy - News & Updates - Archive

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Saturday, May 06, 2006

Govt considering exempting experts’ fee from 15% IT

By Sajid Chaudhry

ISLAMABAD: The government is examining to grant exemption on technical fee paid to international experts on renewable energy projects, especially wind power, from 15% income tax in the forthcoming budget 2006-07, a senior tax official told the Daily Times on Friday.

The exemption from income tax on technical fee paid by investors to international experts of wind energy would help reducing the cost of wind power projects as well as tariff to be negotiated and agreed with the national as well as international investors.

The government has set a target of 700megawatt power generation through wind energy by the year 2010. The government has made a significant progress in this regard and a total of 34 Letters of Intent have been issued to national and international private investors for the development of 50MW wind power generation project each.

The Alternative Energy Development Board (AEDB) has been mandated with the development and promotion of renewable energy technologies in Pakistan with special emphasis on wind energy. Renewable energy, especially wind power generation, is new to the country. Pakistan has no indigenous manufacturing facilities for wind energy equipment. All equipment and other related accessories are being imported. The government, through SRO 575 (i) 2005, has exempted the import of equipment and spares for wind power generation projects through renewable energy technologies from customs duty and sales tax.

Pakistan has no technical experts on wind energy. In order to proceed with technical analysis and documentation of the projects for feasibility studies, private sector investors have to acquire the services of international experts on wind energy. The technical fee of these international experts, paid by private investors, is being incorporated into the project cost of the respective projects, which is reflected in the tariff for public consumers of electricity. A tax of 15% is also applicable on these technical fees as per the Income Tax Ordinance of 2001. All these extra monetary expenditures incurred by the private sector investors add to tariff.

In view of above, AEDB has requested the Central Board of Revenue (CBR) to exempt the technical fees of renewable energy projects from taxation. The AEDB has asked the CBR that necessary amendments to the income tax ordinance may also be made. Private investors require this grant of exemption as soon as possible in order to finalize their security package and further the development of wind power in the country.

According to the estimates of the government, the country would require 5,000MW additional power to meet national demands by the year 2012. To meet the electricity requirements of industrial and commercial consumers, the government as immediate step has approved an incentive package for Independent Power Producers to facilitate them to generate 26,50MW additional power by the year 2007-08.

The PPIB is also processing power generation projects proposals in the hydel sector also to enable the country to meet the shortfall in power generation.

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Saturday, May 06, 2006

By Tanveer Ahmed

KARACHI: A strong demand for cuttlefish and squid species of seafood in European countries and China is fetching better prices for seafood products of the country, which added $30 million in the overall seafood export in the last two months.

While there is a worldwide shortage of these two species because of short supply by India and West Africa, which usually meet the requirements of Europe and China, Pakistani seafood exporters grabbed the opportunity and fetched a better price by half a dollar more than normal prices during this season.

“This season Europe and China are placing orders with Pakistani seafood processors with huge orders of these species, which contributed to a rise the price of raw material by 50 percent�, said a seafood exporter on Friday.

Terming it a good sign for fishermen, who were crying because of low prices all through the season, he said that it has made up their losses to some extent, caused by high voyage cost.

The landing of cuttlefish and squid also saw high volume by 40 percent in March and April period compared with same months of last year, which also improved the raw material supply to seafood processing plants, which had been operating below their capacity for the last many months.

Seafood exporters said that although these species would be in abundance in June and July, which could further add to increase in seafood export, the Sindh government ban on trawling during the upcoming two months will stop fishing of this species, which were now in good demand.

They demanded of the government to reconsider its decision of slapping a ban this season to take advantage of the opportunity.

Vice-president of the Pakistan Seafood Industries Association Faisal Iftikhar said the increasing demand in China and Europe for these two species coupled with the huge catch this season enhanced substantially the seafood export.

“The seafood export figures for the first nine months of this fiscal has given a bright picture as around 30 percent increase has been recorded compared with the corresponding period of last year�, he pointed out and hoped that the total export target of $160 million would be easily met by the end of this fiscal.

He, however, sought greater incentives in the coming budget to steer this industry out of difficulties, which is a major source of livelihood for coastal population of the country.
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Saturday, May 06, 2006

KARACHI: During the first nine months of the current financial year the demand for petroleum products saw a decline in contrast to the surge in economic activities in the country.

Analysts said the decline in demand seems to be due to higher prices during the period under review. Despite booming economy and growing energy needs, the demand for POL products saw a decline of 6.2 percent in the first nine months of financial year 2006. “It seems that the fall in POL use has to do with the rising domestic POL prices,� said Farhan Mahmood, an analyst at Jahangir Siddiqui Capital Markets. In nine months ended March 2006, POL sales volume was down by 6.2 percent to 10.7 million tons versus 11.4 million tons previously. In the third quarter of the financial year 2006 alone, oil sales remained mute, only up by one percent to 3.6 million tons. The decline in overall sales volumes during July-March was due to a fall in the demand for high-speed diesel and furnace oil. Sales of high-speed diesel and furnace oil, having 30 percent and 50 percent weights in total sales, were down by 3.4 percent and 13.5 percent, respectively.

Consumption of white oil, including high-speed diesel, gasoline, kerosene and jet fuel, 68 percent share, was down by two percent to 7.3 million tons. Whereas sales volume of black oil or furnace oil having 30 percent share witnessed a 14 percent decline to 3.2 million tons.

“All products’ sales declining except for jet fuel,� he said and added high-speed diesel and furnace oil occupy the major share of 80 percent in overall petroleum product sales. In nine months of financial year 2006, while high-speed diesel’s share improved to 50 percent from 49 percent previously, furnace oil lost its share to 30 percent from 32 percent. High-speed diesel sales at 5.3 million a ton was down by 3.4 percent amid a 41 percent increase in its price, while the earthquake also affected the upcountry transportation activities. Demand for petrol also dropped with sales down by 11.3 percent to 0.88 million tons. Aviation jet fuel JP-1 has depicted a 21 percent growth in demand to 0.85 million tons. The rise in JP-1 demand was due to the booming aviation industry.

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ISLAMABAD (May 07 2006): President Pervez Musharraf on Saturday said there is a need to enhance economic relations between Pakistan and Switzerland and called for greater trade access to Pakistani goods in the Swiss market. He stated this during a meeting with Swiss Foreign Minister, Madam Micheiline Calmy-Rey, who is also the Vice President of the Swiss Confederation.

Musharraf said Pakistan is a rising economy with a great potential and Swiss investors could invest in infrastructure, information technology and other important areas in Pakistan. Issues relating to bilateral and multilateral were discussed during the meeting.

The President thanked Foreign Minister Calmy-Rey for Switzerland's commitment of 40 million dollar for reconstruction and rehabilitation following the October 8 earthquake.

He appreciated the technical co-operation extended by Swiss Development Co-operation Agency in various projects in the Frontier province. President apprised the Foreign Minister about Pakistan's efforts in fighting terrorism and maintained that a holistic approach by the international community would be required to defeat the menace of terrorism that would combine the political and diplomatic efforts with development co-operation aimed at reforming and strengthening institutions of civil society and economy.

He emphasised that in this era of globalisation and connectivity, through technological means, it was indeed imperative that there should be greater cultural harmony, religious tolerance and respect for each others beliefs and religious symbols. President Musharraf underlined the need for promoting interfaith harmony.

The Swiss Foreign Minister agreed with the President's views and said that maintaining religious and cultural harmony was essential for having a progressive society.

She said that the resolution of the Palestinian conflict was essential to bring peace and stability in Middle East and stressed that the issues of dis-empowerment and economic exclusion are generating extremism within the societies.

The Swiss Foreign Minister lauded the role played by Pakistan in international fight against terrorism as well as toward promoting stability in Afghanistan. Switzerland, she said, is keen to expand relations with Pakistan, especially in commercial and development Corporation. In this regard she briefed the President on the projects being undertaken by the Swiss Development Co-operation Agency in Pakistan.

The President appreciated the role of SDC in Pakistan and maintained that it has undertaken many constructive projects in Pakistan and was happy to note that Swiss Foreign Minister visit coincided with the 40th anniversary of Pakistan and SDC Corporation.

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ISLAMABAD (May 07 2006): Sales tax collection from ten major revenue spinners during July-March 2005-06 amounted to Rs 76.9 billion against Rs 66.3 billion in the corresponding period of last fiscal year, showing a growth of 16.1 percent.

Except sugar, all major commodities showed upward trend during these nine months.

Sugar contributed Rs 5.9 billion as sales tax on domestic consumption, against Rs 6.1 billion, showing a decrease of 3.1 percent.

The GST collection from other commodities was Rs 31 billion against Rs 37.2 billion reflecting a decrease of 16.4 percent. Thus, the overall sales tax collection on all major domestic commodities stood at Rs 108 billion during July-March 2005-06 against Rs 103.5 billion depicting an increase of 4 percent.

According to CBR analysis of GST collected on domestic consumption, the telecommunication sector contributed Rs 18.8 billion as sales tax against Rs 13.9 billion collected in the corresponding period last fiscal year, reflecting an increase of 36 percent.

The sales tax collection from POL products was Rs 18 billion against Rs 16.3 billion showing a growth of 10.9 percent; electricity Rs 10.3 billion against Rs 10.1 billion (2.5 percent); natural gas Rs 9.3 billion against Rs 7.9 billion (18.3 percent); cigarettes Rs 3.7 billion against Rs 3.7 billion; cement Rs 3.5 billion against Rs 2.5 billion (37.2 percent); services (other than telecom) Rs 3 billion against Rs 2.6 billion (15.8 percent); LPG Rs 2.2 billion against Rs 1.8 billion (26.2 percent); and sales tax collection from motor cars was Rs 2.1 billion against Rs 1.5 billion collected in the same period of last fiscal year with a growth of 41.8 percent.

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ISLAMABAD (May 07 2006): Canada's world renowned mining company considers Pakistan an attractive place for investment because of the country's stability and fast-growing economy as well as its helpful policies, Canadian newspaper Toronto Star reported.

The mining giant, Barrick Gold Corp is already operating in Pakistan and plans an expansion, the report published on Friday said. "Pakistan...from a mining point of view, from a business point of view, is among the better countries (to invest in)," founder and chairman Peter Munk told the company's annual shareholders meeting.

Barrick had bought a stake in the Reko Dig copper-gold project in Pakistan for US dollars 100 million in February from Antofasta PLC, a Chilean mining group. The company will spend 20 million dollar this year, exploring for new gold and copper deposits with partners in Balochistan.

When its CEO Greg Wilkins went to Pakistan in connection with that project, he was received by both President Pervez Musharraf and Prime Minister Shaukat Aziz.

"If a country has time to have its president, who's in the middle of a politically, highly charged region... sit down with Greg to encourage him to invest and invite a Canadian company to come in to develop the country's resources, it shows you what a great country it is," the report quoted Munk as saying.

Greg Wilkins told the newspaper: "Barrick Gold Corp would rather do business in Pakistan than in some parts of South America, despite fears of al Qaeda, because big miners don't have to share their profits to operate there."

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KASUR (May 07 2006): The sagacious policies of the present government led by President Musharraf have raised the country's image in the world and ensured foreign reserves up to dollars 14 billion, NA standing committee on Railways chairman Tufail Ahmed Khan said.

He was addressing the PML workers convention near Kot Radha Kishan, attended by a large number of party activists, Punjab parliamentary secretary Ahmed Saeed and local nazims.

He underlined many positive steps taken by the government in various sectors including foreign relations, economic growth, agriculture, industry, IT, provision of healthcare, education and all utilities to masses in urban as well as rural areas.

He said people were aware of the work done by the PML, and expressed confidence that they would elect the party that had worked effectively for national and public interests. He assured party workers of all possible support, and reviewed party affairs and targets vis-ÃÂ*-vis the coming general elections.

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ISLAMABAD (May 07 2006): The Adviser to the Prime Minister on Finance, Dr Salman Shah, on Saturday said globalisation was not a threat to Pakistan's fast growing economy and those who were scared of it can not foresee its hidden benefits to Pakistan.

The adviser expressed these views while concluding a two-day workshop held here on PRSP-II. The theme of the workshop was globalisation, unemployment, gender inequality and environment. Babar Ayaz, a known journalist and expert on economy, conducted the proceedings of the show.

Dr Salman Shah said the government would take all steps to make the forthcoming budget pro-poor and deliver goods to underprivileged section of the society. He hinted at major reforms in many areas to achieve the target set for Budget 2006-07.

These were up-gradation of vocational institutions to make them modern and advance centres to provide required standard of skill to the youth, focusing on livestock to increase the income of rural community, effective monitoring of the funds being spent on social sector uplift and imparting quality education to the students to help them compete internationally, he added.

UNDP chief to Pakistan assured all out financial support for Pakistan's initiatives meant to bring less developed areas. He appreciated the idea of consultations for PRSP programme by holding such workshops.

The experts from the government and non-government organisations (NGOs) and civil society organisations gave recommendations for improvement in key areas to deal with issues like poverty and unemployment.

It proposed to streamline and integrate various social security programs to enhance their effectiveness. It also proposed effective monitoring of the social sector programmes for full utilisation.

The workshop termed New Murree Housing Scheme as a fraud and recommended that it should be banned immediately. It was also seen as a serious threat to regional environment. It also recommended review of fishing policy with specific focus on promoting and protecting the local small fishing industry.

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ISLAMABAD (May 07 2006): Former Ambassador Mushtaq Ahmed Mehr said on Saturday that Economic Co-operation Organisation (ECO) would emerge as a major regional body in future and Pakistan play major role in it. Speaking in a PTV programme, he said the organisation covered an important region with 380 million populations and huge natural resources.

He said the organisation was in its transitional stage as the region was confronting a number of issues, particularly, the situation in Afghanistan.

Once these issues are settled the organisation would emerge as a major economic power and the member states would achieve rapid progress, he said.

He said Pakistan, Turkey and Iran were the three countries in organisation which promised transit trade route between the Central Asia and rest of the world adding that on completion of the infrastructure associated with Gwadar port and return of peace in Afghanistan, Pakistan would be in the driving seat.

To a question, he said the ECO Summit meetings provided a platform to the leadership of member countries to evolve joint strategy for solution of problems in the region. Present era was of collective approach for the solution of internal as well as inter-state problems, he added.

To a question, he said in 1990 the trade volume between the ECO states was dollars 10 billion which now had enhanced to dollars 16 billion but there still existed huge potential for further expansion to which the member states particularly Pakistan was committed to explore.

He said the guarantee for expansion of trade activities between the member states was political stability in the region and the process in that regard was moving in the positive direction.

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FAISALABAD (May 07 2006): British High Commissioner Mark Lyall has said that recent meetings of British Prime Minister Tony Blair with President General Pervez Musharraf and Prime Minister Shaukat Aziz has resulted in mutual understanding between the two countries to prosper.

Addressing members of Faisalabad Chamber of Commerce and Industry (FCCI) here on Friday, he said that recent Senate and local government elections and reforms in Pakistan reflected the internal economic stability.

Lyall disclosed that the UK was willing to eliminate the causes of unemployment, poverty and illiteracy from Pakistan and for this purpose, the British government had approves 236 million pounds as grant.

He said: "We are starting soon some millennium development projects along with the City District Government of Faisalabad." These development projects would be costing Rs 236 millions.

He said it was learnt that due to investment-friendly policies of President Musharraf government, the economy of Pakistan was grooming.

The High Commissioner said the British Embassy was the biggest visa-processing embassy in Pakistan in 2005. It processed 16,5000 applications, while the US Embassy processed only 50,000 visa applications, he added.

Responding to a question, Lyall said that Britain was now giving attention to virtual catalogue industrial exhibitions through electronic devices like internet rather than catalogue exhibition, and added: "We will try our best to encourage the businessmen platforms of Pakistan like FCCI."

Earlier, FCCI President Mian Muhammad Hanif, in his welcome speech, said that trade between Pakistan and the UK had been on increase and likely to touch the level of two billion dollars.

He said that many industrialists were interested to invest in the UK, and similarly many investors from the UK were keen to invest in Pakistan because of the investment-friendly policies of the government.

Later talking to newsmen, the British High Commissioner said that US nuclear pact with India was the need of time, but no such agreement could be signed with Pakistan.

He said that India and Pakistan were two different countries with different needs. They must be treated according to their strategic importance, he added.

Mark Lyall said that for economic stability in South Asia, Pakistan and India should resolve their disputes, including core issue of Kashmir.

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ISLAMABAD (May 07 2006): Minister for Communications Shamim Siddiqui has said that the National Highway Authority (NHA) has embarked upon a six billion dollars road network development programme to provide excellent communication network to meet growing needs.

He was inaugurating a day-long seminar on Bridges Development in Islamabad on Saturday. The minister said on the direction of President Pervez Musharraf a comprehensive strategy has been chalked out to construct new roads besides rehabilitating, widening and improvement of existing road infrastructure throughout the country.

He said as the country is heading towards speedy economic growth, the existing road network is unable to meet the future requirements of providing a corridor for international trade.

He said China is keen to expand its trade and economic relations with Pakistan and has expressed willingness to strengthen road network up to Gwadar.

In this context, China has agreed to provide three hundred and fifty million dollars for improvement and widening of Karakurram Highway from Thakot to Khunjerab Pass. He said the NHA will work on top priority to dualise Hasanabdal-Mansehra road and improvement of KKH up to Thakot.

Shamim Siddiqui said the National Highway Authority is also working on widening and rehabilitation program of Peshawar-Karachi National Highway and Indus Highway which reduces distance between Karachi and Peshawar up to four hundred kilometers.

He said it has also been decided to construct an alternative road network between Gwadar and Khushab.

The minister said that on the directive of Prime Minister Shaukat Aziz the authority is on its way to launch remaining sections of Motorway to link it with Gwadar and Karachi simultaneously.

The minister referring the bridge construction in Pakistan said that NHA is covering over six thousand bridges on its road network in which quality of work has been ensured. He said it was quality of work that not a single bridge built by NHA was damage in the recent earthquake.

World renowned bridge construction expert Dr V.K. Raina who is also Advisor to the Bahrain government will deliver three special lectures in the day-long deliberations on its professional expertise in the field particularly on the world longest bridge connecting Qatar and Bahrain and new trends in constructing fly-overs.

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ISLAMABAD, May 6: The Privatisation Commission (PC) has received 19 Expressions of Interest (EoIs) for acquiring 90 per cent shares of Heavy Mechanical Complex (HMC) with management control on an “as is where is� basis.

According to a PC handout issued here on Saturday following parties had submitted EoIs (i) ABM International (ii) Aqeel Karim Dhedhi Securities (iii) Bulk Management (Pakistan) Private Limited (iv) CSK Limited (v) Descon Engineering Limited (vi) Dewan Mushtaq Group (vii) Gharibwal Cement Limited (viii) Ittehad Steel Industries (ix) Kohat Cement Company Ltd (x) MCC Resources Development Company (Pvt) Ltd (xi) Niagara Mills (Pvt) Ltd (xii) Pak Gulf Construction (Pvt) Ltd (xiii) Shinsei Sangyo Co Ltd (xiv) Start Consult (xv) Shafi Associates (xvi) Sapphire Group (xvii) Techno Engineering Services (Pvt) Limited (xviii) Thal Industries Corporation Limited and (xix) Umer Group of Companies.

The HMC is country’s heavy engineering concern having capability for designing, engineering and manufacturing of capital machinery, industrial plant equipment and other engineering goods. It is located in the prime industrial hub at Taxila.

The mechanical works commenced commercial operations in 1971 whereas foundry and forge works started production in 1978. Both the works were, however, merged in 1989. The facilities include fabrication, machining, foundries, forging and heat treatment, galvanising and auxiliary shops.

A well-established design centre with CAD/CAE facilities is also available. The products of HMC conform to international quality standards.

The HMC has been authorised to use four ASME stamp codes for boilers, pressure vessels, piping etc. The company is ISO-9001 certified.

The company’s product mix covers sugar and cement plants, chemical/petroleum, oil/gas processing plants, thermal power plant equipment, mini and micro hydel power plant equipment, road construction vessels, heat exchangers, heavy to medium electric travelling cranes, boilers, pressure vessels, heat exchangers, heavy to medium iron and steel castings, steel billets, heavy to medium free well as closed die forgings.

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Sunday, May 07, 2006

LAHORE: Punjab Agriculture Minister Arshad Khan Lodhi has called upon cotton growers to adopt latest technologies and recommendations of agriculture experts while cultivating cotton crop to get maximum yield.

He said the federal government has fixed the cultivation target of 2.56 million hectares for Punjab to achieve 10.58 million bales.

The minister, after presiding over a meeting at Multan on Saturday, reporters informed of the decisions taken at the meeting. Secretary Agriculture Fayyaz Bashir, DG Pest Warning & Quality Contorl Dr Ijaz Pervaiz, Secretary Cotton Crop Management Group Islam Gill, a representative of the irrigation department, farmers and pesticide dealers attended the meeting.

Mr Lodhi told the aggregate target for four provinces has been fixed as 13.82 million hectares area. Giving the break-up, he said the federal government has fixed 0.64 million hectares for Sindh, 0.04 million hectors for Balochistan, 0.01 million hectares for the NWFP and 2.56 million hectares for Punjab. The minister explained that the production target for Punjab has been fixed as 10.58 million bales, 3.13 million bales for Sindh, 0.10 million bales for Balochistan and 0.01 million bales for the NWFP.

The representative of the irrigation department presented their plans about releasing canal water for the cotton growing area.

The minister directed the pesticide dealers to keep sufficient stocks to meet any emergency situation. He further directed the chairman of the Task Force of Agriculture Department Capt Atta (retd) and DG Pests Warning Dr Ijaz Pervaiz to keep an eye on the market and accelerate their checking so that the manufacture and sale of substandard and adulterated pesticides can be checked. The minister asked the director Agricultural Infor-mation, Rafiq Akhtar, to ensure that all necessary information are disseminated timely to the cotton growers. Earlier, Secretary Agriculture Fayyaz Bashir and Secretary CCMG Islam Gill briefed the meeting about the cotton plan.

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Sunday, May 07, 2006

* Govt trying to maintain GDP growth rate at 6-8% to generate employment

By Sajid Chaudhry

ISLAMABAD: Dr Salman Shah, Adviser to the Prime Minister on Finance and Economic Affairs, has said we want to maintain GDP growth rate at 6-8% during the next 15-20 years so that employment opportunities can be generated for reduction in poverty.

Poverty level of 25% is still very high and we want to cut it further down by 50% by end of 2015 to meet the targets of Millennium Development Goals (MGDs). MGDs costing gap will be filled and the government will finance all initiatves for reduction in poverty levels. We will take globalization as opportunity so that benefits of it can be availed. All important recommendation received at consultative process would be incorporated in the final PRSP II document so that desired result are achieved.

He was speaking at the concluding session of the third consultative workshop on PRSP II here on Saturday evening. Earlier, the Third Consultative Workshop on Poverty Reduction Strategy Paper II finalized some key recommendations for incorporation in the final poverty document to be implemented during 2006-2009 on Saturday. Economic experts suggested key initiatives to meet the challenges of income inequality, globalization, unemployment, gender inequality and environment in the proposed PRSP II.

Strategies to reduce income inequalities: There should be accountability in the social sector spending of the government where there have been instances of mismanagement and underutilization of allocated funds.

Social security system: It was proposed that there was need to streamline and integrate / various social security programmes being managed by the government. Their effectiveness can be enhanced if all dispersed programmes run by different ministries of the government are brought under one umbrella.

Development of livestock: To raise the income level of the rural poor it was felt that an aggressive livestock development policy should be launched by the govt. The government should provide subsidies on live stock insurance, easy availability of credit to small farmers for purchase of better quality livestock, improved facilities and guidance to livestock farmers.

Human resource development: To arrest growing inequality it was proposed that the poor should be provided access to quality education by improving sector institutions, fellowships/vouchers for quality education in the private sector, enhanced technical and vocational training facilities by updating labs, syllabi and teachers training.

Rural industrialization: Industrialization of rural areas should focus on utilization of local resources and labour force.

Land Reforms: Improvements must be made in areas such as updating of land record and the records should be transparent to check whether previous land reforms have been flouted and tenancy laws and other legal framework should be looked into. If there is any distribution of state land, gender perspective should be taken into consideration to balance land ownership between men and women.

Easy availability of credit: Credit schemes focusing on needs of the poor with reasonable interest rates should be made easily available.

Unemployment: A duty on remittances should be levied similar to the export development cess to set up a Manpower Development fund. Skill-based training should be provided to the workforce meant for export. Some of the existing training centres and vocational centres should be privatized to upgrade them to meet the demand of foreign markets. Training programmes should be developed in collaboration with highly credible institutions from the UK or Singapore. There should be criteria to classify a project for the poor.

Reducing gender gap: It was proposed that a system should be developed to establish linkages between educational institutions and the employment market to check the rising unemployment among the educated youth. It was proposed that economic emancipation of women is important to change the present mind-set about women, hence future agricultural and housing and allotments should have a quota for women as at present they have very little assets in their name. Mapping of informal sector can go a long way in visibility and recognition of women’s contribution to the economy since women are mostly employed in the informal sector. Measures for monetization of women’s work at home should be incorporated in the PRSP ll. Women-specific loan schemes have to be improved by not only increasing the amount of loans available to women, but also by making terms and conditions more simple and by providing advisory services on how to utilize that loan in a productive manner.

The PRSP ll should focus on generating employment specific to women and women’s health and education, as it will lead to narrowing down of gender gap. Women’s quota in public-sector employment should be increased to 50%.

Globalization and its impact on poverty in Pakistan: Manpower planning should be part of the PRSP ll for promoting skill development so that Pakistani labour can meet the challenges posed by globalization. Manpower training strategy should take into consideration the trends and needs in international and domestic markets. Restriction on export of female labour force from Pakistan should be removed. Protection of vulnerable groups through social security safety nets should be ensured. The PRSP ll should explore the possibility of instituting social security insurance. The PRSP ll should have a clear strategy to protect the interests of consumers as globalization affects the provision and prices of services and goods. It should take into account the impact of import substitution on domestic production and how it is affecting the domestic employment scenario.

Environment: The environmental cost of development should be kept in mind while preparing development plans. Pakistan should sign the international conventions and agreements on environments. The PRSP 11 should clearly mention the strategy for the construction of big dams and mega projects such as the LBOD that are likely to have great impact on environment. It was suggested that Pakistan should have a clear policy for the setting up of micro-hydro plants, which has a total capacity of 40,000 megawatts in China. The practice of giving license to bring trawlers for fishing into Pakistani waters should be stopped since it is adversely affecting poor fishermen. There is need to develop environmentally-friendly beach development since the development of the 750-kilometer long coastline would have grave consequences for poor fishermen in the area.

http://www.dailytimes.com.pk/defaul..._7-5-2006_pg5_9

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Amina Jilani
Power and glory are coming our way by 2016 – at least that is what has been promised to those of us who may still be around in ten years time. President General Pervez Musharraf is very confident about it all and will hopefully be on the spot to perform the various mammoth inaugurations and grand openings the coming entails. Until then, we must hold our horses and soldier on with what little we have.

The Prime Minister, investment banker Shaukat Aziz, last week made the stupendous announcement that side by side with the latest rise in fuel prices the per capita income of Pakistan has doubled. Well, his own personal per capita income and that of his clientele may well have doubled (or even trebled) taking into account his investment prowess, but that of the man riding the Mandi Bahauddin omnibus certainly has not – and the same goes for my chowkidar. What is the point in spouting such statements? Self-gratification?

Last week also, following the power and glory promises and the per capita boasts, ‘Foreign Policy’, the US publication which is known for its extensive and accurate research and which is usually pretty much on the mark, came up with its latest list of ‘failed states.’ The Islamic Republic of Pakistan, whatever be the reasons, has the distinction of having fallen dramatically from 34th on the list to its present status at No.9, sandwiched between Haiti at No.8 and Afghanistan at No.10

Now, it would be far more appropriate for both President and Prime Minister, rather than star-gazing to admit to the people that all is not in the pink (apart from the motor car and 4x4 market) and outline the reasons – earthquakes, rampant Al-Qaeda and Taliban activity in the NWFP, the revolt of the Baloch sardars, the sectarian terrorism, the total absence of law and order, or whatever. They should level with us.

Having said that, one must admit that it is rather silly, as no politico of Pakistan has ever been big enough to do any truthful leveling. General Musharraf makes waves internationally, listed on Time’s 100 world movers and shakers, but on the home front it’s all a bit different. Since time memorial in the Republic, all who breathe in the heady air of Islamabad, and sit in the high chairs on the Plateau of Potohar, are tainted with the ugly aroma of the arrogance of power when it comes to this country and its people.

The shaky edifice of our federal and provincial governments may well be slowly dissolving in the stew of their own staggering incompetence, but our dear leaders continue to merrily do their own thing. Last Sunday the President General took one of his frequent trips to Lahore to parley and party with the beloved of his Q League, those hard core professional politicians who he so often in the past has openly professed to despise. How he can countenance them is beyond rational thought, but there he was in a press photograph, happily sandwiched, with a beaming Mushahid Sahib at his side, between the two Chaudhrys of Gujrat, the grim and the smirking, at a dinner held in honour of the grim one who heads his party. Times have changed. The General now thinks nothing of schlepping off to Lahore or wherever to break bread with the weavers of political schemes.

The two troublesome provinces are on hold as it appears that our dear leaders have not yet resolved as to how to deal with them, or they have simply decided that with more important survival matters on the agenda they can’t be bothered with relevant solutions. The ruling province is busy chopping trees and building underpasses and generally getting on with sustaining or furthering the mess. As for Sindh, lawless and alone, its rocky coalition continues to do its best to befuddle us.

Last Sunday, in the press was one of those things that should be banned when it comes to governments and the public sector – an ‘advertising supplement’ of eight pages of bumph, misleading and propagating nothing but untruths and hypocrisy. It was funded by the people, in the guise of various district and town governments and their nazims, by the Civil Hospital, by the ever greedy and prosperous Defence Housing Authority, by PIA, by the Information Department (which listed its ‘achievements’) and the chief minister himself. ‘My Province Sindh’ was the title and the first banner headline proclaimed ‘Law and order is top priority’ – or so says the helpless home minister, Rauf Siddiqui who obviously, judging by the conditions in Sindh, has no concept of either law or order – and the same goes for the rest of the ruling clique, civil and military.

For the edification of the dear leaders, a quote from The Times (London) from columnist Anatole Kaletsky, writing last week on ‘the most vital issue of government.’

“Throughout the 5,000 years of recorded history, if you asked any subject of any civilization on any continent, from China to Egypt to Peru, to name the one duty which governments must fulfill above all others, you would probably get the same answer. The first responsibility of any government is to protects its subjects from unlawful killings, robbery and violence….. nobody has every disputed that a government’s main raison d’etre was to deter and punish criminals and to try to maintain the rule of law.�
Put that in your collective pipes and smoke it.