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PR. No. 252 Pakistan Carpet Manufacturers’ and Exporters’ Association delegation led by its Chairman Mian Javed-ur-Rehman met Finance Minister. The delegation apprised the Finance Minister that it is contributing a substantial addition in foreign exchange of the country through its value-added products’ export world over. The Carpet manufacturing units form significant part of countrywide local sale and export industry that potentially adds to foreign exchange earnings of the country besides adding to the local job market engaging 2 million employees. The delegation apprised the Finance Minister that a majority component of Carpet export from Pakistan comprises hand-made carpets which are considered the best world over. The manufacturing of hand-made carpet is labour-intensive which receives no subsidy from the government. As industry, it has no local financing either as project or as industrial unit. The delegation drew Finance Minister’s attention for export refinancing of their export products through banking sectors. Finance Minister assured the delegation that SBP and FBR shall be advised to consider all genuine requests of Carpet Manufacturers and Exporters Association focusing enhanced production and export to the benefit of all stakeholders. The delegation informed the Finance Minister that as against Rs.4 billions loan of the industry, their export earnings are Rs.16 billion that merits GOP appreciation. The industry is confronting scarcity of raw material as necessary input to the manufacturing industry. It needs GOP support through appropriate official channels. Finance Minister appreciated the idea of carpet city in Pakistan that would help boost local production for export enhancement, adding that GOP shall make all out efforts to support carpet industry. What carpet industry needs to put in place is an aggressive marketing campaign targeting overseas market, Finance Minister concluded.
PR. No. 253. Outgoing Ambassador of Yemen Mr. Abdul Elah Mohammed Hajar called on President Pervez Musharraf here today. The President appreciated the strong bilateral relations with the brotherly people of Yemen, and said that the existing bilateral ties were enriched during his tenure as ambassador. He wished him success in all his future assignments. The Ambassador thanked the President for his cooperation and contribution to the growth of close and strong relations with Yemen AJ/AR.
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No. 254. It has been in principle agreed that the government will continue to provide Research & Development (R & D) support upto June 30, 2009 for the Apparel sector after necessary finalization by the Economic Coordination Committee (ECC). Syed Naveed Qamar Federal Minister for Finance, Privatisation & Investment announced the decision during a meeting with a representative delegation of Pakistan Apparel Forum having representation of Pakistan Hosiery Manufactures Association (PHMA), Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), PN & SA and PCFAA which met the Minister here today. The Finance Minister directed the Federal Bureau of Revenue (FBR) to examine the Withholding Tax issue being faced by garment industry exporters and submit a report to take prompt decision to facilitate the industry. Syed Naveed Qamar assured the delegation that the government would make all out efforts to resolve the market access issue being faced by the industry. He asked the industry to cooperate with the government to keep the economy healthy, which would be equally beneficial for the business groups. The business groups were aware of the economic conditions of the country, which was a part of global phenomena and the business groups could be helpful in improving the economic scenario through dedicated efforts and joining hands with the government. Earlier, the leader of the delegation of Pakistan Apparel Forum Mr. M. Naqi Bari apprised the Minister regarding the problems being faced by the industry and assured fullest support to the government in improving the economy. TP/AR.
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No. 255. The world’s leading power investors endorsed Pakistan’s power sector development strategy and made suggestions for improving the investment process at an investors’ roundtable hosted by the World Bank, the IFC, and the Government of Pakistan at the World Bank Group offices in Washington DC on Tuesday. The press release received from Washington DC says that the roundtable was attended by the world’s leading power investors such as AES (USA), International Power (UK), Zorlu (Turkey), Global Steel Holdings (UK), Waddell & Reed (USA), Barrick Gold (Canada), Aga Khan Fund for Economic Development, Amwal (USA), Tata Power (India), and Essar Group (India) as well as leading Pakistani investors such as Engro, Jahangir Siddiqui Group, Fatima Group, Hasan Associates, and Hubco. In addition, key international financial institutions and government/aid agencies were amply represented: Japan Bank for International Cooperation, Islamic Development Bank, Nordic Investment Bank, KfW of Germany, US Agency for International Development, US Ex-Im Bank, US Department of State, US Department of Energy, US Trade and Development Agency as well as the World Bank and IFC. Mr. Rashad Kaldany, the IFC’s VP for Infrastructure, welcomed the participants by observing that the presence of major investors and leading international financial institutions at the roundtable indicates that interest remains high in Pakistan and in the investment opportunities in its power sector. Pakistan’s Minister for Water & Power, Mr. Raja Pervaiz Ashraf stated that the Pakistan People’s Party Government set the framework for private investment in Pakistan in 1994. And due to the party’s efforts, Pakistan received some 5,000MW of private generation capacity and the power sector has 40 percent private participation today. The current government is looking to achieve a similar feat to address the current challenges. The Chief Minister of Sindh, Mr. Qaim Ali Shah, introduced the enormous coal resources of the Thar region and mentioned that the development of these resources for power generation is a cornerstone of the Party’s manifesto. Mr. Shah extended a warm welcome to investors on behalf of the Government of Sindh to develop this resource. Mr. Salman Faruqui, Deputy Chairman of the Planning Commission, noted that in the 1990s Pakistan became one of the first developing countries to use standardized documentation for power projects. A similar roundtable of investors kicked off that process some 15 years ago and this roundtable promises to be the beginning of another major round of investment. He also noted that the high investor interest in Pakistan’s electricity sector was evidenced by the response to the recent tender requests by the Government which elicited tenders of some $4.5 billion. Federal Secretary Water & Power, Mr. Ismail Qureshi, presented an overview of Pakistan’s power sector and emphasized that Pakistan’s power strategy is guided by the principles of affordability, energy security, and financial viability. Pakistan’s focus is on accelerated development of its indigenous energy resources and diversifying its energy mix through private participation as well as regional cooperation. The Secretary presented a realistic assessment of the sector’s recent financial difficulties and outlined the measures already taken by GOP to address it. He presented major investment opportunities in the power sector of nearly 16,000MW in hydro, gas, coal generation capacity and associated T&D totaling some $30 billion of which the private sector is expected to invest nearly $20 billion by 2015. The international financial institutions were unanimous in their willingness to support GOP in the development of Pakistan’s power sector. Dr. Walid Abdelwahab of the Islamic Development Bank recommended that capacity has to be built in the Thar Coal & Energy Board and that tariff increases must not overly burden the economy. Mr. Raghuveer Sharma of the World Bank underlined his institution’s keenness to support Pakistan’s energy sector as GOP takes bold policy steps for stabilizing the macro-economic situation and shoring up the sector’s finances and focuses on implementation. Mr. Adil Marghub of the IFC outlined policy measures taken by the governments of the Philippines, India, Jordan, and Turkey to recommend possible paths Pakistan could follow. IFC underlined the need to address the current challenges—both macro-economic and sectoral—in an urgent and bold way to be able to advance IFC assistance. Investor feedback was positive. Mr. Paul Hanrahan, president of one of the world’s largest power companies operating in developing countries, AES Corporation, told the audience that AES is investing further in Pakistan’s power sector because of its positive Pakistan experience over the last 15 years. The relationships at the WAPDA and GOP levels have been well maintained and the skills of Pakistani engineers and managers have been critical to AES’s success. He noted that major foreign investors in other sectors regularly cite electricity shortages as the key constraint to their expansion. Continued emphasis is needed on tariff reform, the financial strength of WAPDA/NTDC and more active support to investors in land acquisition and environmental clearances, he said. Mr. Vince Harris of International Power, another global investor and leading investor in Hubco, seconded Mr. Hanrahan’s views about his company’s positive investment experience in Pakistan. Mr. Murat Bursa of Zorlu Enerji (Turkey) complimented Pakistan for its favorable power incentives and hospitality to investors at a personal level. Mr. Asad Umar of Engro Pakistan recommended that GOP build on the previous successes in Pakistan’s power sector by speeding up implementation, particularly by further empowering PPIB with decision-making authority and possibly through the establishment of an integrated energy ministry. The country is considering all options for power generation with hydropower, gas, alternative energy resources (wind, solar, etc.), and coal as well as energy conservation and efficiency on the demand side. The development of Thar coal was recognized as a landmark development opportunity for Thar as well as for Pakistan. The discussion on coal policy focused on whether Pakistan should develop a large-scale operation rather than multiple medium-sized operations, whether coal mining and coal-fired generation should be integrated, whether investor participation should take place through an upfront tariff announced by the Government or tariff-based international competitive bidding, etc. Investors underlined the need for definitive investigation of the coal composition, water availability and recharge, environmental implications of exploiting lignite coal, etc., through a master plan study under public-private partnership. Mr. Salman Faruqui thanked the investors and IFI’s for their feedback and outlined the measures being considered by GOP to address the concerns raised. Mr. Ismail Qureshi, in his recap of the day’s proceeding observed that he was pleased to see that investors see Pakistan has having honored its contractual commitments. He noted that Pakistan stands ready to welcome private investment in all its forms. In his closing address to investors, Mr. Shah Mahmood Qureshi, Minister of Foreign Affairs, emphasized Pakistan’s value as an energy corridor for the region and its will to diversify its energy mix through trade with all its neighbours.
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No. 256. Pakistan will build relations with all countries of the world on the basis of equality and look at them with respect and dignity, said Syed Khursheed Ahmed Shah, Federal Minister for Labour, Manpower and Overseas Pakistanis who is leading Pakistan’s delegation to the 15th Ministerial Meeting of the Non-Aligned Movement in Tehran today, says a press release received from Tehran. Addressing the 118 Ministers of the Non-Aligned Movement, the Federal Minister highlighted Pakistan’s resolve to eradicate terrorism and extremism, despite daunting challenges it is facing. The Minister said that Mohtarama Benazir Bhutto Shaheed, a revered leader of Pakistan and an international icon, had become victim of cowardly and barbaric terrorist attack while promoting the cause of moderation and democracy in Pakistan. Syed Khursheed Ahmad Shah emphasized the relevance of NAM in addressing the contemporary challenges of foreign occupation, racism, terrorism, unilateralism and economic inequities. He mentioned Pakistan’s endeavours to resolve all outstanding issues with India peacefully through dialogue and engagement. The Minister emphasized that Pakistan had an abiding interest in peace and stability in Afghanistan. He hoped that the two countries would overcome current difficulties and usher in a period of peace, security and prosperity. While commenting on the security situation in the Middle East, the Minister called for enhanced efforts to end the occupation of Palestinian territories. By addressing the Palestinian issue, the spiral of violence and insecurity could be replaced with durable peace and stability in the Middle East, he said. Syed Khursheed Ahmed Shah further called for international efforts to bring peace, harmony and stability in Iraq. Speedy reconstruction of Iraq to repair ravages of war, he said, should remain international community’s priority. The Minister declared that Pakistan was against unilateral use of force anywhere in the world. He urged peaceful resolution of Iran’s nuclear issue in accordance with international law and through engagement and negotiations. “All states have the right to develop nuclear energy for peaceful purposes in accordance with their respective international obligations”, the Minister underlined. The Minister said no new centers of power and privilege should be created, as the UN was grappling with the reform of UN Security Council. He also underlined the Government of Pakistan’s commitment to ensure protection of the political, civil, social, economic and cultural rights of all both at domestic and international levels. While mentioning several social and economic challenges including international trade negotiations, food crisis and climate change, the Minister urged NAM to revitalize its efforts to address these problems. The Federal Minister for Labour, Manpower and Overseas Pakistanis attended a banquet by President Ahmadinejad hosted Tuesday in honour of the Ministers attending the NAM Conference. During the banquet, Syed Khursheed Ahmad Shah conveyed greetings and good wishes of Prime Minister Yusuf Raza Gilani to the Iranian President and the brotherly people of the Islamic Republic of Iran. President Ahmadinejad reciprocated the sentiments and underlined the importance of close and friendly relations between Pakistan and Iran. MSG/AR.
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No. 257. Federal Minister for Information & Broadcasting, Ms. Sherry Rehman, who also holds the portfolio of health conferred with the US Secretary for Health and Human Services, Mr. Mike Leavitt, for boosting cooperation between the two countries in the health sector. During her 45-minutes meeting, Ms. Sherry Rehman informed the US Secretary for Health that the newly elected Government of Prime Minister Yousaf Raza Gilani is keen to broaden cooperation with United States in all areas including economy, trade and social sectors. This, was clearly reciprocated in new legislation being introduced in the U.S. Congress by Senator Joseph Biden and Mr. Richard Lugar of the Senate Foreign Relations Committee. Ms. Sherry Rehman informed her counterpart about the challenges facing the Government of Pakistan in the health sector and sought U.S. assistance in training medics, vaccine production and providing technology to overcome these challenges. Ms. Sherry Rehman said that resource constraints had restricted Government’s efforts for preventive treatment for several infectious diseases. Cases of Polio, which had been eradicated form the country, have resurfaced. This was a cause of concern to the Government, she said. The Lady Health Worker program is a success story. This, the Minister said, is a community based program which has been mobilized in the country to provide primary health care to the mother and child. Mr. Mike Leavitt told Ms. Rehman that United States values the role played by Pakistan on the war on terror and evinced his keen interest in extending all possible assistance to Pakistan in the health sector. He observed that while the United States provides assistance to other countries it goes unnoticed as most of it is routed through multilateral organizations. Both, Ms. Sherry Rehman and Mr. Mike Leavitt, agreed that bilateral assistance and cooperation between the two countries would be much more effective. This will not only improve relations between the two peoples but also help in the better utilization of the funds. Ms. Sherry Rehman extended an invitation to Mr. Mike Leavitt to visit Pakistan which he accepted with pleasure and expressed his desire to visit Pakistan at the earliest.
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No. 258. Finance Minister, Syed Naveed Qamar has expressed his deep grief and sorrows over the death of Sindh High Court Sukkur Bar’s President, Advocate Imdad Ali Awan, who died in Karachi yesterday. The Finance Minister in his condolence message addressed to the bereaved family appreciated late Imdad Ali Awan’s struggle for judiciary’s independence and promotion of justice in the country, adding that the Bar and the Bench have lost a precious legal mind with the said demise of the late Sukkur High Court Bar ’s President. Finance Minister has expressed his feelings of sympathies with the bereaved family and prayed that Allah Almighty may rest the departed soul in heavens and grant patience to the bereaved family. TP/AR.
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No. 259. Mian Manzoor Ahmad Wattoo Advisor to Prime Minister/ Minister for Industries, Production (MOIP) has stated that Board of Directors (BoDs) of all the companies and organizations under the administrative control of MOIP&SI will be reconstituted and the possibility of merger of various companies will also be examined and it will also be ensured that all the directors attend board meetings so as to make BoDs meetings more effective and productive. He said this while chairing the 80th Board Meeting of PIDC (Pakistan Industrial Development Corporation) here today. Abdul Bari Khan Chairman PIDC informed the meeting that ‘Furniture Pakistan’ project with a total cost of Rs. 590 million approved during the last Board meeting is well on track. The project aims to increase the exports of Pakistani furniture by ensuring production of quality furniture in the country. After thorough deliberations the Board took following decisions: a- Number of Board of Directors of PIDC will be reduced from 17 to 12. b- BoDs instructed the PIDC to clear legal hurdles for disposal of Bath Island property of PIDC. c- Proposal to refurbish of PIDC House Karachi and construction of additional floors was approved in principal. d- Board also instructed PIDC to market a study done for setting up Coal Port/Terminal for imported coal. e- Construction of residential blocks for the teaching staff of Skill Development Centers (SDCs) was approved. It would be pertinent to mention that PIDC has set up four SDCs in earthquake affected areas of Koza Banda in District Batagram and Khaki in Mansehra District which have imparted technical training to hundreds of students of this area. f- BoDs approved to award contract to J. E. Austin Associates Inc. for formulation of strategy for development of Sports Goods Sector at a total cost of Rs. 42.582 million. AUR/wh
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No. 260. The Federal Minister for Information and Broadcasting Ms Sherry Rehman has welcomed the approval of the Biden Lugar Bill by the U.S. Foreign Relations Committee. The Information Minister was talking to a private channel after Pakistan’s delegation, led by the Prime Minister, held a meeting with the members of the Senate Foreign Relations Committee, including Senator Chuck Hagel and Senator John Kerry “It was a frank and productive discussion, and we discussed a wide range of issues concerning Pakistan. We extended Pakistan’s gratitude to the Senators for their interest in the development of the country,” the Minister informed, says a press release received from Washington here today. The Bill that would be presented in the House commits a development assistance of 15 billion dollars to Pakistan over the next decade. The non-military aid signals a major shift in the focus of the US assistance towards Pakistan. Describing the unanimous approval of the proposed legislation by the U.S. Foreign Relations Committee, a huge success for Pakistan’s new democratic set up, Ms Rehman said that the Bill reflects deep commitment of the US government to support the agenda of development in Pakistan. “The 15 billion dollar assistance committed by the Bill would go a long way in aiding the new democratic government to build solid foundations for the social and economic development of the country. The people-centric focus of the Bill is a success for the people of Pakistan. It is a clear indication that the US government wants to work directly with our people and respects their February 18 mandate for a democratic order.” The Federal Information Minister applauded Senators Biden, Lugar, Kerry and Hagel for leading the efforts to expand the scope of US-Pakistan relations. “The Pakistan-US relations have long been seen in the backdrop of the ongoing war on terror. The PPP government believes that the bilateral relations between the two countries must be based on mutual interest and shared values, and the Biden Lugar legislation endorses our stand. This Bill would go a long way in highlighting the positive aspects of the ties between the two countries.”
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