Pakistan

Pakistan, officially the Islamic Republic of Pakistan (Urdu: اسلامی جمہوریۂ پاکِستان) is a sovereign state in South Asia. It has a 1,046-kilometre (650 mi) coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west,India in the east and China in the far northeast.[7] Tajikistan also lies very close to Pakistan but is separated by the narrow Wakhan Corridor. Strategically, Pakistan is located in a position between the important regions of South Asia, Central Asia and the greater Middle East.[8]

The region forming modern Pakistan was the site of several ancient cultures including theneolithic Mehrgarh and the bronze era Indus Valley Civilisation. Subsequently it was the recipient of Hindu, Persian, Indo-Greek, Islamic, Turco-Mongol, and Sikh cultures through several invasions and/or settlements. As a result the area has remained a part of numerous empires and dynasties including the Indian empires, Persian empires, Arab caliphates, Mongol,Mughal, Sikh and British Empire. Pakistan gained independence from the British Empire in 1947 after a struggle for independence, led by Mohammad Ali Jinnah, that sought the partition of India and the creation of an independent state for the Muslim majority populations of the eastern and western regions of British India.[9] With the adoption of its constitution in 1956, Pakistan became an Islamic republic.[10] In 1971, an armed conflict in East Pakistan resulted in the creation of Bangladesh.[11]

Pakistan is a federal parliamentary republic consisting of four provinces and four federal territories. With over 170 million people, it is the sixth most populous country in the world[2] and has the second largest Muslim population after Indonesia.[12] It is an ethnically andlinguistically diverse country with a similar variation in its geography and wildlife. With a semi-industrialized economy, it is the 27th largest in the world in terms of purchasing power. Since gaining independence, Pakistan's history has been characterised by periods of military rule,political instability and conflicts with neighbouring India. The country faces challenging problems including terrorism, poverty, illiteracy and corruption.

Pakistan has the seventh largest standing armed force and is the only Muslim-majority nation to possess nuclear weapons. It is designated as a major non-NATO ally of the United States and a strategic ally of China.[13][14] It is a founding member of the Organisation of the Islamic Conference (now the Organisation of Islamic Cooperation)[15] and a member of the United Nations,[16] Commonwealth of Nations,[17] Next Eleven economies and the G20 developing nations.

http://en.wikipedia.org/wiki/Pakistan

Saturday, December 10, 2011

Well done, Team Pakistan

The nature of Pakistani cricket fans is such that winning cricket matches isn’t enough for us; we want our players to be unpredictable, flashy and eccentric. That is why a hit-and-miss batsman like Shahid Afridi, equally capable of reaching dizzying heights of brilliance and moments of sheer stupidity, is a folk hero while the solidly dependable Misbahul Haq has never garnered much affection or respect. Now may be the time to change that view. Under Misbah’s captaincy, Pakistan has become what it never was previously: a team that is consistently victorious. If winning series in all three formats of the game against Sri Lanka was not enough to convince the sceptics then nothing will.
Both Pakistan and Sri Lanka are teams recovering from the loss of their best bowlers — Sri Lanka to retirement, Pakistan to prison. What our complete dominance showed is that we still have the best bowling reserves in the world. The surprise, though, was the batting line-up. Previous Pakistan cricket teams have had individual batsmen that rank among the best in the world but have also been prone to inexplicable collapses. The current batting squad is devoid of stars but heavy on reliability. As much as we love to moan about Misbah’s slow strike rate, his dependability is the glue that binds the batting. Given that both he and Younis Khan are in the twilight of their careers, it was also very encouraging to see the maturity shown by Azhar Ali and the late blossoming of Mohammed Hafeez’s talent.
Crediting our comprehensive victory against the Sri Lankans to the change at the top of the Pakistan Cricket Board may be premature but going forward it will be a welcome respite to have a chairman who doesn’t seem to go out of his way to antagonise star players. The return of Shahid Afridi, after his pointless feud with Ijaz Butt, also points to a new future, one where infighting and rivalries can be banished and forgotten. Given our history this dawn may be a false one and the cricket team could soon revert to type.
Published in The Express Tribune, November 28th, 2011.

Diamer-Bhasha Dam: ADB agrees to provide technical, financial support

ISLAMABAD:
Pakistan and the Asian Development Bank (ADB) have agreed to sign a memorandum of understanding (MoU) for technical and financial cooperation in the construction of multi-billion-dollar Diamer-Bhasha Dam.
The MoU will be inked next week, said the Ministry of Water and Power after a meeting between Water and Power Minister Naveed Qamar and the Manila-based lending agency’s Director of Energy Wing Rune Stroem on Friday.
Stroem is leading a delegation to assess detailed engineering design of the dam, which will store 8.5 million acre feet of water for irrigation purposes and generate 4,500 megawatts of electricity.
The delegation, the first formal mission on Diamer-Bhasha Dam, will also review the cost component and consider options to make it a bankable project, as the ADB alone cannot finance the full cost estimated at $11.2 billion.
The government and the ADB also agreed to organise roadshows in three different countries with the assistance of international lenders, equipment suppliers and others concerned for seeking co-financiers for the project, said the water and power ministry.
An official of the Economic Affairs Division said the ADB has not yet formally conveyed the exact size of the loan but there are indications that the agency may extend up to $4.5 billion that will meet 40 per cent of financing needs.
After a refusal in 2008, the World Bank also recently expressed its willingness to finance the project, said the official. The US has also committed to financing the project under the Kerry-Lugar Act, but it also has not given the exact size of its share in the financing.
Stroem said the mission was giving highest priority to Diamer-Bhasha Dam and looking for its early execution. Praising the progress made so far on the project and the efforts to resolve related matters, he said the project would help improve socio-economic life of people and bring prosperity in the country.
Naveed Qamar said the ADB’s role as lead financier of the project would help attract other donors and sponsors to fund mega projects in Pakistan. He said the project would be a milestone for the country’s economy and meet water and power needs.
The government is attaching high priority to the project and has completed all formalities for its construction, hinting at its approval at the Council of Common Interests, the highest constitutional body on inter-provincial matters.
Qamar said most of the land for the project had been acquired and the resettlement package was being implemented. The ADB mission also discussed the energy efficiency programme and matters relating to other mega water and power projects being executed by the government with the cooperation of the bank.
Stroem said the bank was also considering various other projects for financial and technical assistance in the water and power sector.
Matters relating to power sector reforms and rehabilitation of electricity generation companies were also discussed. The mission was told that rehabilitation of power companies was under way, which would be completed at the earliest.
Published in The Express Tribune, December 10th, 2011.

Pakistan ranks second in Arabia Fast Growth 500 list

Pakistan has the second largest number of fast-growing companies among 15 regions including Middle East, North Africa and Turkey, according to 2011 Arabia Fast Growth 500.
A total of 70 companies from Pakistan made it to the list of Arabia500, with Turkey topping the list with 117 companies and Saudi Arabia ranking third with 40.
Arabia500 is a project by AllWorld Network which aims to bring together the fast-growing companies of the world based on their yearly growth, number of employees and revenue generation.
E2E Supply Chain Management tops Pakistan’s list with a growth rate of 1,918% in the Transportation and Aviation Industry between the years 2008-2010. Founded in 2006, the company has a 2010 revenue range of $50-200 million and 297 employees.
Exceed Private Limited comes second in Pakistan’s list with a growth rate of 1,320%, revenue range of $10-50 million and 90 employees in the Construction and Engineering Industry.
Companies from Pakistan which made it to the list include Rozee.pk, Folio3, Vita Pakistan Limited, The HobNob Group, Iqra National University-Iqra Trust and others.
The least number of companies are from Yemen and Syria with one from each, while two companies from Palestine also made it to the list. Other countries in Arabia 500 include Algeria, Bahrain, Egypt, Jordan, Lebanon, Morocco, Qatar, Tunisia and UAE.
The winners are invited to the Arabia 500 Awards Ceremony and Global Entrepreneurship Summit in Turkey which takes place from December 3-6.
Companies from Pakistan
Rank Company Name Growth Rate (%) Growth Period Revenue Range Industry
1 E2E Supply Chain Management (Pvt) Ltd. 1,918% 2008-2010 50-200 million USD Transportation and Aviation
3 Exceed Private Limited 1,320% 2008-2010 10-50 million USD Construction and Engineering
4 Fund Marketing International 954% 2008-2010 1-5 million USD Import/Export Trade
8 Almoiz Industries 477% 2008-2010 10-50 million USD Agriculture and Mining
10 Innovative Technologies Pvt. Ltd (Luscious Cosmetics) 392% 2008-2010 < 1 million USD Consumer Goods
12 Etimaad Engineering (Pvt) Limited 388% 2008-2010 10-50 million USD Construction and Engineering
13 Arbisoft (Pvt.) Ltd. 385% 2008-2010 < 1 million USD Software Services and Products
17 Umer Trading Company 337% 2008-2010 < 1 million USD Import/Export Trade
20 Rozee.pk 304% 2008-2010 < 1 million USD Recruitment and Training
23 Taneez (Pvt) Ltd 271% 2008-2010 < 1 million USD Construction and Engineering
26 Student Shelter In Computers 229% 2008-2010 < 1 million USD Education
28 i2c Inc 217% 2008-2010 5-10 million USD High-Tech and Telecommunications
32 Empowerment thru Creative Integration (ECI) Pvt Ltd 194% 2008-2010 < 1 million USD Professional and Consulting
34 KBK Electronics (Pvt.) Ltd. 186% 2008-2010 10-50 million USD Consumer Goods
38 Naya Tel Private limited 173% 2008-2010 5-10 million USD High-Tech and Telecommunications
39 Dawood Family Takaful Limited 171% 2008-2010 1-5 million USD Finance and Insurance
43 Sonya Travels (Pvt) Ltd 157% 2008-2010 10-50 million USD Travel and Tourism
44 Folio3 149% 2008-2010 1-5 million USD Professional, Scientific and Tech Services
45 Medialogic Pakistan 146% 2008-2010 1-5 million USD Professional and Consulting
47 Seagold Private Limited 143% 2008-2010 10-50 million USD Transportation and Aviation
50 Tradekey Private Limited 136% 2008-2010 1-5 million USD Professional, Scientific and Tech Services
55 Karma Enterprises Private Ltd 127% 2008-2010 1-5 million USD Textiles and Fashion
57 Frontier Foundry Private Ltd (FF STEEL) 122% 2008-2010 10-50 million USD Manufacturing and Packaging
58 Meskay and Femtee Trading 119% 2008-2010 50-200 million USD Agriculture and Mining
60 Roshan Packages Pvt.Ltd 116% 2008-2010 10-50 million USD Manufacturing and Packaging
64 Sofizar Private Limited 109% 2008-2010 1-5 million USD High-Tech and Telecommunications
65 SPEL – Synthetic Products Enterprises Limited 105% 2008-2010 5-10 million USD Manufacturing and Packaging
68 ExpressPac Private LTD 98% 2008-2010 1-5 million USD Consumer Goods
73 Abacus Consulting Technology (Pvt) Ltd. 83% 2008-2010 10-50 million USD Professional and Consulting Services
76 Shaigan Pharmaceuticals Private Ltd. 79% 2008-2010 5-10 million USD Health and HealthCare
78 S. K. Stones Pvt Ltd./Amish Marble 78% 2008-2010 1-5 million USD Construction and Engineering
79 Iqra National University-Iqra Trust 75% 2008-2010 1-5 million USD Education
82 iTextiles 75% 2008-2010 5-10 million USD Textiles and Fashion
86 City University of Science and Information Technology 71% 2008-2010 1-5 million USD Education
91 Cotton Web(pvt) Ltd 64% 2008-2010 10-50 million USD Textiles and Fashion
105 Interwood Mobel 52% 2008-2010 10-50 million USD Construction and Engineering
106 Southern Travels (Pvt) Ltd 49% 2008-2010 10-50 million USD Travel and Tourism
107 Egas Pvt. Ltd 47% 2008-2010 < 1 million USD Energy and Power, Water
109 Riaz Textile Mills (PVT) Limited 45% 2008-2010 50-200 million USD Textiles and Fashion
111 Descon Engineering Limited 41% 2008-2010 200-500 million USD Construction and Engineering
116 International Trading Corporation 36% 2008-2010 < 1 million USD Import/Export Trade
117 Malang Gas Link 36% 2008-2010 10-50 million USD Conventional Energy
125 Inbox Business Technologies 28% 2008-2010 10-50 million USD Software Services and Products
127 Mustang Security Services (Pvt) Limited 28% 2008-2010 5-10 million USD Computer Networking and Software
130 City University and Peshawar Model Degree College(Boys) 27% 2008-2010 < 1 million USD Education
131 Rawalpindi Flour and General Mills Ltd 27% 2008-2010 1-5 million USD Agriculture and Mining
133 Vita Pakistan Limited 27% 2008-2010 10-50 million USD Food Industries
134 Techlogix Pakistan Pvt. Ltd. 26% 2008-2010 10-50 million USD Software Services and Products
136 Multilynx 25% 2008-2010 10-50 million USD High-Tech and Telecommunications
148 Remington Pharmaceutical Industries (Pvt) Ltd. 15% 2008-2010 5-10 million USD Manufacturing and Packaging
149 Kestral Trading 14% 2008-2010 1-5 million USD Professional and Consulting Services
151 Corvit Networks 14% 2008-2010 1-5 million USD High-Tech and Telecommunications
153 Faysal Asset Management Limited 12% 2008-2010 1-5 million USD Finance and Insurance
157 The HobNob Group 10% 2008-2010 < 1 million USD Food Industries
159 Creative Chaos (Private) Limited 10% 2008-2010 1-5 million USD Software Services and Products
163 Ideal Distribution Line 10% 2008-2010 1-5 million USD Computer Networking and Software
160 Royal Group 10% 2008-2010 1-5 million USD Import/Export Trade
Start-Up to Watch A2Z Creatorz < 1 million USD E-commerce and Web services
Start-Up to Watch Bramerz (Pvt) Ltd < 1 million USD E-commerce and Web services
Start-Up to Watch Gizelle Communications < 1 million USD Media, Publishing and Printing
Start-Up to Watch Hillcrest Solutions (Private) Limited 1-5 million USD Professional and Consulting Services
Start-Up to Watch Mint Consulting Group (MCG) 1-5 million USD Professional and Consulting Services
Start-Up to Watch Moftak Solutions < 1 million USD Software Services and Products
Start-Up to Watch Mustang HRMS (Pvt) Limited 1-5 million USD Professional and Consulting Services
Start-Up to Watch Optimedia Pvt. Ltd. 1-5 million USD Media, Publishing and Printing
Start-Up to Watch Ovex Tech 1-5 million USD Professional and Consulting
Start-Up to Watch LOGIX College < 1 million USD Education
Start-Up to Watch M/s. Saiduddin and Co. < 1 million USD Professional and Consulting
Start-Up to Watch Onstyle Sports < 1 million USD Textiles and Fashion
Start-Up to Watch Smartek < 1 million USD Construction and Engineering

A version of this post originally appeared on ProPakistani.

Air space wars: Three new airlines to fly domestic routes

KARACHI:
The sharp rise in air passengers in recent years has prompted at least three business groups to start their engines and try and capture part of the local aviation industry, officials told The Express Tribune on Friday.
Indus Air, Bhoja Air and Pearl Air are all set to launch flights in 2012 on domestic routes, according to a senior official of the Civil Aviation Authority (CAA). The new entrants will go head-to-head with national carrier Pakistan International Airlines (PIA), Air Blue and Shaheen Air to get a foot-hold in the domestic aviation industry.
Indus Air, a fresh entrant, was recently awarded a licence to fly while Bhoja Air is re-launching its operations after a gap of 12 years.
Meanwhile, Pearl Air was among the airlines, which were issued licences in the 1990s when Pakistan adopted the open-sky policy. Pearl Air’s sponsors have finally begun efforts to start their aircraft business.
“We need at least two more carriers,” said a senior CAA official. “Passengers are being subject to longer and longer wait times at airports and flight cancellation has become a norm. Existing airlines operating with a limited number of aircraft are having a hard time dealing with passenger flow.”
Despite an increase in fares, the number of air travellers within the country jumped to 3.6 million in fiscal 2011 compared with 3.5 million in fiscal 2010.
“The dilapidated state of Pakistan railways has forced passengers opt for the aerial route and has added to the pressure on airlines,” official said.
The three airlines will work under stricter controls considering the setbacks small Pakistani carriers faced in the past and the embarrassment suffered by the regulator CAA.
Except for sponsors of Bhoja Air, the people behind Pearl Air and Indus Air have no previous experience in the aviation industry.
Indus Air has also been a subject of various rumours recently, suggesting that the owners had connections with the government. The fact that it managed to get a licence in a very short time added fuel to these rumours. But a senior CAA official who was close to the process said there was no proof to suggest connections between the sponsors and top government functionaries.
The man behind Karakoram Motors, Abdul Wahab, is the lead investor of Indus Air. “He has been wooed into the business by former PIA officials who are on the board of directors of the carrier,” the CAA official said. Wahab was not available for comments.
A general manager at Karakoram Motors’ office said nothing has been finalised as yet. The model of aircraft is still being considered, the official added.
However, according to CAA, the airline has contracted four Boeing 737-300 aircraft from a company in Bulgaria. Aircraft inspectors will shortly fly to the country to review the condition of the aircraft, official said.
Bhoja Air’s Chairman Farooq Omar Bhoja said he cannot say when the airline starts flying. “It’s too early to say anything.” Without sharing details, he said that Bhoja was grounded by CAA in October 2000.
After former Prime Minister Nawaz Sharif opened country’s airspace in 1993, Bhoja leased B 737-200s. It was grounded after it started losing money and failed to clear CAA dues.
Bhoja Air has appointed Arshad Jalil as its managing director. Jalil was CEO of Shaheen Air for a longtime and owns an aircraft maintenance company.
Pearl Air was among the airlines, which were issued licences in the 1990s but it never actually flew. However, its sponsors have renewed efforts to get aircraft and restart operations.
When Pakistan adopted the open sky policy, more than 20 airline licenses were issued to different business groups, however, none of them except Shaheen survived.
The last airline to declare bankruptcy was Aero Asia. “We have learnt our lessons,” said the CAA official. “None of the new airlines or the ones renewing operations will be allowed to fly on foreign routes for at least a year.”
Published in The Express Tribune, December 10th, 2011.

Pakistan to become a permanent member of the UN Scientific Committee

UNITED NATIONS: The UN General assembly has unanimously decided to appoint Pakistan as a permanent member of the United Nations Scientific Committee (UNSCEAR), a top international body dealing with nuclear radiation.
A press release of Pakistan Mission to the UN said the 193-member Assembly’s decision is an acknowledgement of Pakistan’s technological advancement in applications of the peaceful uses of nuclear radiations in the fields of health, agriculture, environment and research & development.
The UNSCEAR, which was established in 1955, consists of 27 Member States and is based in Vienna, Austria.
Pakistan had been an observer of this committee since 2007. The committee members are designated to provide scientists to serve as members of the committee which holds formal meetings annually and submits a report to the General Assembly.
The body was established solely to ‘define precisely the present exposure of the population of the world to ionizing radiation.’

US, allies must invest $100 billion in Pakistan for regional development: Mossadaq Chughtai

WASHINGTON, Nov 14 (APP): An economically vibrant Pakistan will be pivot for regional development, so the U.S. and it’s allies must back the country with $100 billion to ease Islamabad’s debt worries and bolster infrastructure,a prominent Pakistani-American business leader said.For it’s part, Pakistan must assign a high priority to ensuring law and order and strive for transparency and good governance to infuse a new momentum into economic growth, Mosadaq Chughtai, who owns businesses both in the United Stats and Pakistan, said.He argued in an interview that at this critical moment, Pakistan needs to take bold new measures as part of the larger effort to stimulate industrial growth and make Pakistani products more competitive in international markets.
“More than anything else, it is a sense of security that matters to investors -I understand some of the problems related to the Afghan war but we cannot wait as other countries are moving forward apace - and we must tighten governance to provoke international intererest in so many potential areas which are awaiting to be explored in Pakistan,” he emphasized.
Chughtai was referring to areas holding out large scale investment promise like energy, water management,infrastructure and industries as well as small and medieum enterprises that strengthen grassroots development and step up bottom-up growth in economies.
Secondly, he noted, Pakistan should roll out a clear plan in it’s internatioal engagement and go for economically-driven approach to foreign relations with major countries like the United States.
“Pakistan is likely to remain a very important strategically located country for regional development as well as for major world powers in the foreseeable future --- Pakistan should say to the United States if we are a critical ally to peace and security in the region, here is what our country needs.
“We have suffered economically and gone through unrest due to war being fought at our doorstep, we need our allies to arrange at least $ 100 billion for our country, $ 60 billion of which will be used to retire debt we owe and the rest of the $ 40 billion would be diverted to boosting energy production and expanding infrastructure facitilies like transport, road and rail networks.”
The entrepreneur, who is one of the directors of the Pakistani
American Leadeship Center, an advocacy group working on the Capitol Hill, felt the Pakistani government should assure the world that it would maintain transparency in the use of such funds and involve them in the process.
On the need for bold new measures, Chughtai proposed that Pakistan waive off duties on import of all machinery which is new and not older than two years, as inflow of modern technology would bolster production, enhance skills of workforce and quickly raise the quality of products and this way add tremendously to the volume of exports.

Pakistan secures two gold, five silver awards at APICTA 2011

Pakistan has won two gold and five silver awards at the 11th annual Asia Pacific ICT Awards (APICTA) in Pattaya, Thailand.
ICT firms from Pakistan secured two gold awards in the e-Health and e-Logistics & SCM categories, and five silver awards in the Communication, Financial, Security, e-Inclusion & e-Community and e-Government categories.
The Pakistani team had 18 products competing with 162 products from the Asia Pacific region.
The Center for Advanced Research in Engineering (CARE) once again swept the awards with gold in e-Health and silver in the Communication, Security and e-Government categories.
Lumensoft Technologies went for gold in the e-Logistics category, with the Infotech Group taking silver in the Financial Apps category and Engro-Orix taking silver in the e-Inclusion & e-Community category.
This is the second consecutive year that Pakistan’s ICT firms have stunned the world with their innovative and creative products and apps in different fields of life and businesses.
Pakistan ICT firms had grabbed seven awards out of 16 categories at the APICTA 2011 held in Malaysia. These included Runners up Awards in Security Applications, e-Inclusion and e-Community, Financial Applications, Communications, e-Government and e-Health categories.
Pakistan had been making their presence felt at APICTA for three years but had failed to make a mark in the renowned regional event.
The APICTA 2011 awards were announced by the Association of Thai ICT Industry and supported by the Software Industry Promotion Agency (SIPA).
Here is the list of APICTA Award winners from Pakistan:
Gold Awards:
Center for Advanced Research in Engineering (CARE) for e-Health Applications Category
Lumensoft Pvt Ltd for e-Logistics category
Silver Awards:
Center for Advanced Research in Engineering (CARE) for Security Applications Category
Center for Advanced Research in Engineering (CARE) for e-Government Category
Center for Advanced Research in Engineering (CARE) for Communication Category
Infotech Pvt Limited for Financial Applications Category
Engro Foods & Orix Leasing Pakistan for e-Inclusion & e-Community Applications Category
The APICTA Awards were initiated to increase ICT awareness in the international community and to assist in bridging the digital divide.
The APICTA network has 16 member economies and provides an international awards program to showcase innovation, creativity and excellence in ICT in the Asia-Pacific region. APICTA’s member-economies include Australia, Brunei, Hong Kong, India, Indonesia, Korea, Macau, Malaysia, Myanmar, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
APICTA provides the region’s ICT entrepreneurs with valuable networking and product benchmarking opportunities, fosters ICT innovation and creativity, promotes economic and trade relations and facilitates technology transfer.
A version of this post originally appeared on ProPakistani.

Is Pakistan’s economy immune to crises?

In a thought-provoking piece published in Dawn last month, Dr Akbar Zaidi has asked us to stop talking about the weaknesses of Pakistan’s economy for a moment, to think about its resilience instead, and reflect upon “why it continuously avoids any real crisis”.
It’s a good question and worth thinking about. Not many countries get to reflect on how, in spite of it all, they’re still standing. Pakistan’s economy has weathered some very severe storms, yet it still stands and delivers. Might there be a story there?
Dr Zaidi’s hint is towards the informal sector, or how the country’s “wide social and economic networks allow families and individuals to live in worlds which are often not on the economists’ map.” He believes that remittances form a large input into this ‘informal sector’, making it resilient and keeping it going even during times of severe economic distress.
But there are two things he fails to mention. One is that besides remittances, another crucial input for the ‘informal sector’ is energy, whether electricity or natural gas, and for this vital input, the ‘informal sector’ is totally dependent on the vagaries of its elder sibling: the formal economy.
Shortages of power and natural gas have hit small and medium enterprises much harder than the formal economy, where the large manufacturing concerns have adapted by investing in captive power and leveraging private channels to arrange privileged access to dwindling gas resources. And through this vital input, the supposedly ‘resilient’ informal economy ends up sharing the fate of the formal sector, living and breathing with every pulse of the circular debt, the winter gas load management plans and the oil price fluctuations. Far from resilience, the informal sector is in fact brittle, unable to adapt to the new shortages that are becoming a permanent feature of Pakistan’s economy, and tied into the formal economy’s weaknesses and shortages.
The other thing he forgets to mention is that in the two crisis moments in our recent past, Pakistan pulled through on the back of external help and nothing else. For the crisis that began in May 1998, the external help arrived in the form of a Saudi oil facility and in the form of a $600 million loan from the IMF. And for the crisis that began in 2007, external help finally arrived in November 2008, though this time there was no oil facility, only a loan from the IMF.
In fact, the only time Pakistan has faced a sharply deteriorating economic situation with no external help arriving was in the years leading up to 1971, but that opens up a different can of worms altogether.
Yet, there is no doubt that Pakistan has weathered some very difficult times, and in spite of it all still stands. What explains this resilience? If I were to venture a guess, I’d say two things. We are self-sufficient in food, and our enormous gas reserves, which account for almost half of our domestic fuel requirement, have helped cushion the impact of rising energy prices worldwide.
The layperson may not feel that his energy bill is cushioned. Households have seen their energy bills rise very sharply in the last three to four years. What the layperson does not see is the growing trend towards domestic gas as the fuel of choice, burdening our already strained gas reserves with rising demand. Close down CNG pumps for a month, generate all your electricity from furnace oil and see what your energy bills look like after that and you’ll get an idea of what I’m talking about.
Fact of the matter is that we are still largely shielded from the spike in energy prices around the world, but we cannot remain shielded forever. A projection by the Petroleum Institute of Pakistan shows that by the year 2025, our supplies of natural gas will dwindle down to a quarter of what they are today. Domestic gas is running out, no major fields are about to come online, and the cheapest imported alternatives are priced at triple of what we’re used to paying for gas, and in many cases much more. We need a clearer understanding of where the price of energy is going over the next 10 years, and nobody needs this clarity more than the ‘informal sector’.
Will external help be as forthcoming now as it has been in the past? Remember how the government of Nawaz Sharif struggled with its external position throughout 1998 and 1999?
When the IMF finally did come through, it was in December of 2000, and with a miserly $600 million at that; just enough to carry us through till June 2001, when they would examine the budget to see if any further money was warranted. No growth came from the ‘strict implementation’ of the IMF program in 2000. It took 9/11 and the consequent windfall avalanche of liquidity to come pouring in to get growth started again in this country in 2002.
But is such an avalanche likely to happen again? With the recession abroad, and all stocks of international goodwill exhausted, it’s unlikely that any external windfall is about to come our way. Just enough money to keep us from going over sure, like in 2000, but not enough to underwrite a boom.
In some cases, the economy’s vulnerabilities have grown. For instance, in November 2008 we discovered that our banks can be drained of liquidity very quickly. In 1998, fears of a run on bank resources was restricted to foreign currency accounts, but in 2008 even rupee liquidity saw severe stress, enough to prompt an intervention by the State Bank. If fears of a bank run meant freezing foreign currency liquidity in 1998, what might similar fears mean today?
Pakistan’s economy has shown some resilience over the decades, undoubtedly, but it would be a mistake to allow that to become a source of complacency in the complex and dangerous world that we are entering now.
Published in The Express Tribune, November 17th, 2011.

TBMs to ensure early completion of Neelum-Jhelum project

Lahore—WAPDA chairman, Shakil Durrani has said the authority decided to deploy state-of-the-art tunnel boring machines (TBMs) for on-schedule completion of strategically important 969 MW-Neelum Jhelum Hydropower Project. “Deployment of TBMs on the project will reduce the construction period by about two years resulting in an estimated benefit of Rs 90 billion,” he added.

During his visit to Neelum Jhelum Hydropower Project, he said the Neelum Jhelum was a priority project of WAPDA’s low-cost energy generation plan. Since completion of the project was vital for the country, he said, Wapda is taking all possible measures for the purpose, including deployment of two TBMs, on the project. “The TBMs, being imported from Germany by the contractor, are expected to reach Pakistan by January 2012,” Durrani added.

Lauding efforts of the project authorities, the WAPDA chairman said that completion of the tunnel to divert River Neelum was a landmark in implementation of the project. The diversion tunnel was completed in October in record time of two years.

Neelum Jhelum Hydropower Company CEO/MD, briefing the Chairman, said the overall progress on the project stands at 27 per cent. He said about 17-kilometer long tunnels had so far been completed. These include both access and main tunnels. He also briefed the chairman about excavation work on the powerhouse and the main tunnels and piling for the composite dam. It is pertinent to mention that Neelum Jhelum Hydropower Project is being constructed on River Neelum in Azad Jammu & Kashmir. The project is scheduled to be completed in 2016. On completion, the project will provide about 5.15 billion units of electricity annually to the national grid. Benefits of the project have been estimated at Rs 45 billion per annum. The project will pay back its cost in about seven years.

President ask for pushing wind power projects

KARACHI, Nov 11 (APP): President Asif Ali Zardari on Friday said that by the end of 2012, Pakistan should be producing 500MW of wind power. For this purpose, he called for periodic reports to be submitted to the Presidency, indicating the progress, made and the bottlenecks encountered.During a briefing by Alternative Energy Development Board, Board of Revenue Sindh and Sindh Investment Board on wind power projects, here at Bilawal House Friday, it was informed that three wind power projects of 50MW each would start producing power within a year while the work on another 10 projects of 50MW each would start early next year.The President was informed that another 5 projects were at initial stage of financial close in 2012.

He directed that land allocation process for 18 other wind power projects also be expedited.Spokesperson to the President, Farhatullah Babar said the President was informed that all projects companies involved with wind power projects, have suggested announcement of upfront tariff to save at least six months project time which is spent in tariff determination by the authority concerned.
The President directed NEPRA to examine the suggestion and expressed the hope that NEPRA would soon arrive at a consensus upfront tariff regime for all the projects till the capacity to produce 2000 MW is achieved.
However, the option of opting for normal tariff determination system would remain open for the companies, which do not opt for the upfront tariff, he said.
The President said that incentives would be given to the companies that would be able to start their power productions within one year.
He also directed for finalization of schemes for construction of road networks in the areas of the power projects.
During the briefing, the President expressed satisfaction that Zorlu Energy of Turkey, FFC Wind Energy and CWE of China, each with 50MW capacity have reached advanced stage and would be able to generate power by December 2012.
The President said that such project were a good start in the quest for finding alternative resources of energy which are efficient as well as would help to reduce the dependence on traditional modes of electricity generation and at the same time expand the power supply capacity to remote locations where grid expansion is not practical.
The President said that wind energy being clean and renewable source of energy was also the world’s fastest growing energy resource and Pakistan needs to tap all available resources including that of solar energy.
The President said that the demand for energy has increased in tremendous proportions in the last few decades and is expected to increase further in the coming years.
He said “meeting the energy requirements is also crucial for our development, therefore we need to utilize all available resources for meeting the energy challenge”.
Those whoe were present during the meeting included, among others, Provincial Ministers Ms. Shazia Mari, Syed Murad Ali Shah, Mir Nadir Khan Magsi, Agha Siraj Durrani, Sharjeel Memon, Chief Secretary Sindh, Shahzar Shamoon, Senior Member Board of Revenue (SMBR), and concerned Provincial secretaries.
Syed Naveed Qamar, Minister for Water and Power, Malik Asif Hayat, Secretary to the President, Ms. Fouzia Wahab and Arif Allauddin Chairman, Alternative Energy Board were also present during the meeting.

Pakistan, Russia to go for FTA, currency swap agreement

ST. PETERSBURG: The leaders of Pakistan and Russia have expressed the willingness to speed up work on the proposed Free Trade Agreement and currency swap arrangement to boost bilateral trade and further strengthen their economic ties.
Prime Minister Syed Yusuf Raza Gilani and his Russian counterpart Vladimir Putin, who had a frank discussion in a cordial atmosphere, here on Monday also discussed the whole gamut of relations on the sidelines of the 10th Heads of Government meeting of the SCO. The two leaders discussed several important issues including fight against terrorism and extremism besides calling for the need to adopt a regional approach in dealing with common challenges. The two leaders discussed ways to strengthen relations by increasing cooperation in energy, trade, infrastructure development, agriculture, business cooperation and people to people contacts.
Prime Minister Putin said relations between Pakistan and Russia have reached a level, where both the countries were in a position to enhance trade, measuring up to their strong ties.
Prime Minister Gilani said Russia was an important country and a source of stability in the region and because of its geographical proximity and strength of economy, it has contributed significantly for the socio-economic uplift of the region.
The Russian premier also supported Prime Minister Gilani’s proposals for implementing trade and energy projects.
He announced financing of 500 million US dollars for the CASA-1000 for the power transmission from Turkmenistan, Tajikistan, and Kyrgyzstan to Pakistan and Afghanistan.
Putin also offered Russia’s assistance for the enhancement of the production capacity of the Pakistan Steel Mills by increasing its production from the current one million tonnes to three million tonnes.
He also offered coal gasification technology for the Thar coal and upgradation of the Guddu and Muzaffargarh power plants to increase power generation capacity to help meet country’s growing energy needs.
Putin said in practical and tangible terms, Russia wants materialization of projects including TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline project and the Central Asia South Asia Electricity Trade and Transmission Project (CASA 1000).
Gilani appreciated Russia’s support for mega projects including CASA-1000 and said it was his fourth meeting with Prime Minister Putin.
He mentioned that he joined other leaders at the SCO forum despite the occasion of Eid because of the importance of the forum and also because of Pakistan’s commitment to the regional issues.
Prime Minister Gilani called for the opening of respective bank branches in both the countries to jack up the trade level. He said the top officials of their central banks can meet to work on an operational strategy in this regard.
The Russian Prime Minister said the inter-ministerial commission’s meeting will be held on December 12, which will take up all subjects of cooperation at the experts level.
“Pakistan is important for us in trade and economy and is an important country of South Asia and the Organization of the Islamic Conference and can play an important role in the promotion of peace and security in the region,” he told Prime Minister Gilani.
The leasing of Sukhoi commercial aircraft for the Pakistan International Airlines was also discussed during the meeting.
Russian premier Putin also offered assistance to Pakistan in disaster management, saying it could help save precious lives and property.
Gilani said he was very pleased to meet his counterpart at his home town of St. Petersburg, which was also an economic hub like Karachi, where he was born and said “we share affinity between the two cities.”
Putin supported Pakistan’s stance on war on terror and agreed to pursue the policy of counter-terrorism for ensuring regional peace.
The two prime ministers agreed that collective regional efforts were required to eliminate terrorism from the region to usher in peace and stability, and redirect all energies towards economic interaction among the members of SCO.
Russian Prime Minister said Pakistan had good relations with China like the ties of his country with China, and it would be appropriate if the three countries can work together for peace, prosperity and stability of the region.
Prime Minister Gilani invited the Russian Prime Minister to visit Pakistan, which he accepted. The dates would be worked out by the respective foreign ministries of the two countries.

The 10 historic facts about Pak-US ties

LAHORE: Just four-and-a half months after tensions between Washington DC and Islamabad had mounted due to the eventful May 2, 2011 incident in which Osama bin Laden was killed at Abbottabad by US forces, the relationship between Pakistan and US has yet again turned sour, but a peek into the history of the ‘roller coaster’ diplomatic ties between the two countries would reveal that these two key allies in War against Terror have seldom been on the same page since they had ‘befriended’ each other on October 20, 1947.

Here follow the 10 historic facts about the nearly 64-year old “love-hate relationship” between the United States and Pakistan (from more recent to past history):

1) It has been exactly two years since the amended version of the ‘controversial’ Kerry Lugar Bill was unanimously approved by the US senate and an announcement in this context was made by none other than the US President Barack Obama in September 2009, but Pakistan is yet to receive any substantial chunk out of it.

It is noteworthy that in less than a week’s time from now, the on-going American financial year will end and the new fiscal will begin on October 1, but the ‘pledged’ American dollars are no where in sight yet.

A Geo Television report of September 24, 2009, had stated: “US President Barrack Obama Thursday said the US senate has unanimously approved the amended Kerry-Lugar bill. He made the above announcement while addressing the Friends of Democratic Pakistan summit. The US president said under the Kerry-Lugar bill Pakistan will be provided financial aid of 1.5 billion dollars per year for five years. The condition of cooperation with India has been removed from the bill while a new condition of cooperation with the neighbours on war against terrorism has been included in the amended bill. The condition on Dr Abdul Qadir Khan has also been struck out.”

2) Pakistan has so far received over $18 billion in military and economic aid from Washington DC since 9/11, official Congressional documents reveal.

Meanwhile, a Press Trust of India report of February 23, 2010, which was carried by major Indian newspapers like “The Times of India” and “The Hindu” etc, had also quoted the figures from the US Congressional documents.

The Press Trust of India report had stated: “A Congressional compilation of US aid to Pakistan says Islamabad has received $6 billion in civilian aid after the September 11 terrorist attack in New York. The Obama administration in its latest annual budget has proposed $1.6 billion in military assistance and about $1.4 billion as civilian assistance to Pakistan. This takes the total US aid to Pakistan to more than $20.7 billion post 9/11, according to the data compiled from information received from the Departments of Defence, State and Agriculture and US Agency for International Development.

Of the military assistance, the maximum amount $7.345 billion has gone to Pakistan as Coalition Support Fund (CSF), which many do not consider as foreign assistance as this is reimbursement that Pakistan receives for its support of the US military operations in Afghanistan.”

The official Indian news agency had gone on to write in its February 2010 report: “This is followed by $2.164 billion as foreign military assistance. After coming to power, the Obama administration has so far provided $1.1 billion ($400 million in 2009 and $700 million in 2010) for Pakistan Counter-insurgency Fund/Counter-insurgency Capability Fund. For the year 2011, Obama has proposed to the US Congress $1.2 billion for Pakistan under this category.”

3) In October 1999, the American aid to Pakistan was cut off (for the sixth time since the signing of the 1954 defence pact, when the then Army Chief General Pervez Musharraf had staged a bloodless coup, ousting the then Premier Nawaz Sharif. The US government promptly invoked fresh sanctions under Section 508 of the Foreign Appropriations Act, which included restrictions on foreign military financing and economic assistance.

The assistance was thus restricted to refugee and counter-narcotics assistance only. Aid to Pakistan had dropped dramatically from 1991 to 2000 to a dismal $429 million in economic funding and $5.2 million in military assistance.

4) The Pak-US relations had also suffered a serious setback in 1998, after the then Premier Nawaz Sharif opted to test the country’s nukes. A presidential visit scheduled for the first quarter of 1998 was postponed and, under the Glenn Amendment, US sanctions again restricted the provision of credits, military sales and economic assistance to Pakistan.

5) When the Soviets withdrew from Afghanistan in 1990, US military aid to Pakistan was again suspended under the Larry Pressler Amendment. However, in 1995, the Brown Amendment authorised the delivery of military equipment worth $368 million.

6)) In December 1979, the former Soviet Union invaded Afghanistan and the United States gave $2.19 billion in military assistance to Pakistan between 1980 and 1990 as ‘reward’ for blocking and resisting the raging Soviets. This military aid was in addition to $3.1 billion economic assistance.

7) In April 1979, the United States again severed its military ties with Pakistan due to Washington’s concerns about Islamabad’s nuclear programme and construction of a uranium enrichment facility, though food assistance under the Symington Amendment had remained unaffected.

8) During the 1971 Pakistan-India war, the US again suspended its military aid to Pakistan, but resumed limited financial aid in 1972, after Islamabad had facilitated President Nixon’s tour to China the same year.

9) The first time the US had suspended its military aid to Pakistan was during the 1965 Pak-India war. Ten years down the lane, in 1975, the US arms sales to Pakistan resumed and Islamabad received $50 million in military grants, $19 million in defence support assistance and $5 million in cash or commercial purchases.

10) Both Pakistan and America had first inked a mutual defence accord on May 19, 1954 at Karachi, which had actually facilitated the influx of $2.5 billion economic aid and $700 million military assistance from Washington DC to Islamabad till 1964.

As far as America’s military adventures (both scripted and unscripted) are concerned, the world super power has intruded in the affairs of at least 50 countries of the world over 130 times during the last 121 years.

These numbers were incorporated by this scribe in one of his earlier reports after an in-depth research was conducted with assistance sought from renowned US scholar Dr Zoltan Grossman’s book “From wounded knee to Libya: A Century of US military interventions,” and from celebrated author William Blum’s books “A brief history of US interventions: 1945 to Present” and a best seller “Killing Hope: US Military and CIA Interventions Since World War II.”

A quick glance into the US military history unveils the fact that although the Americans have been in the battle-field since 1775 or the year in which they had gained independence from the British Empire, their spirited quest for supremacy has continued unabated since its first involvement in the affairs of Argentina in 1890.

Moreover, since the September 11, 2001 episode, the US Congress has approved $1.283 trillion for military operations, base security, reconstruction, foreign aid, embassy cost and healthcare of the veterans, taking part in the still ongoing War on Terror.

The War on Terror is thus the second costliest American offensive in the country’s 236-year old military history after the World War II, which had cost Washington DC an amount equivalent to $4.1 trillion when converted to current dollars. (Reference: CNN report of July 20, 2010)