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Saturday, 7 July, 2012
4,345 PIA flights delayed in 3 months ISLAMABAD INP
The National Assembly was informed on Friday that during the last three months, 38 percent of PIA flights were delayed. The Defence Ministry said that in three months there were 12,184 PIA flights out of which 4,345 were delayed. PIA has been on a downward spiral for the last several months and passengers routinely complain of flight delays which last for several hours. Flight delays are not only experienced on local but international flights as well. Apart from frequent delays, passengers are also suffering due to cancellation of flights and mismanagement of PIA. BusIness development plAn devIsed: A Business Development Plan of Pakistan International Airlines (PIA) has been conceived to make the national flag carrier commercially and economically viable and to get the organization out of financial crises. The plan has already been furnished to Ministry of Finance for its consideration and examination, Federal Minister for Defence, Syed Naveed Qamar informed the National Assembly here on Friday. In his written reply, he described the financial and organizational reconstructing, Human Resource rationalization, fleet renewal plan and cost cutting measures as the salient features of the plan. Appreciating the recently appointed chairman, he said, the new chairman immediately took various steps to cut down unnecessary organizational expenses. The key objective of the plan is to stop bleeding through.
What’s up with SAARC these days? KARACHI ONLINE
SAARC Chamber of Commerce vice President Iftikhar Ali Malik has said that efforts are being made to increase trade between SAARC countries. Taking to media during the visit of city, he noted at present trade between SAARC countries is around 6 percent and efforts are been made to increase it and achieve jump of 10 percent by the end of current year. Referring to government of Pakistan's announcement to give Most Favor Nation (MFN) statues to India, he said that this move will not only improve political relations but also increase bilateral trade and investment between them. He was hopeful that increase in trade will also help to resolve other disputer between the two countries. Malik said that future of trade lies with Asia and added that China and India have already opened their markets for Pakistan as well as Chinese invests are prepared to invest in Pakistan in a big way.
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SBP governor reminds financial analysts that Pakistan is in fact facing challenges KARACHI STAFF REPORT
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AvING largely been successful in mitigating the effects of exogenous shocks and contagion risks of the international sub-prime crisis, Pakistan is still facing challenges of its own. This was stated by Governor State Bank Yaseen Anwar while addressing the annual Chartered Financial Analyst (CFA) Convention and Excellence Awards ceremony here. Terming the current events unfolding in the international economic environment as challenging and unique, the SBP governor said conservative and prudent policies should enable the country to remain resilient from exogenous shocks of the global crisis. Anwar said though substantial progress was made to limit the effects of the financial crisis, the vulnerability still persisted in the shape and size not imagined earlier. “One key lesson policymakers and regulators learned from the recent subprime crisis is that among many other factors, weak corporate governance practices in leading financial institutions played a crucial role in creating the asset price bubble and misallocation of financial resources,” he said. As a result, the governor said, policymakers in the post-crisis period were placing more emphasis on improving market transparency and Corporate Disclosure. Few would have thought that the effects of the sub-prime crisis would question the survival of the Euro currency and
would threaten the entire European region to fall into a severe recession, he said. Anwar said the World Bank’s country review of Pakistan based on OECD Principles on Corporate Governance rated Pakistan above average on most of the principles. The World Bank in a survey also rated Pakistan as the leader on the robustness of corporate governance standards and practices in South Asia, he added. AnwAR uRged tHe need foR: Apart from an enabling environment, proper infrastructure, skills and knowledge, Anwar said, a responsible and ethical behavior of the participants was a pre-requisite for efficient and well functioning markets. “Domestically it behooves us to upgrade our corporate governance practices at all institutions to strengthen our pace of economic recovery and make the environment more challenging and productive for corporate and private institutions,” the governor said.
Raja appoints Kazi as SBP deputy governor KARACHI: Prime Minister Raja Pervez Ashraf has appointed Kazi Abdul Muktadir as deputy governor State Bank of Pakistan (SBP) for a period of three years starting from Friday. This was notified by the Finance Division saying Kazi has taken the charge on Friday. Prior to taking over as SBP Deputy Governor Kazi had been serving the central bank as its executive director since December 2002. He had been group head of banking supervision since June 2010 and was responsible for On-Site Examination, OffSite Surveillance and Enforcement actions over all banks in Pakistan. In this capacity, he gained repute within the banking community as a high calibre professional known to
handle difficult issues and situations. Born in 1957, Kazi, the SBP’s senior most executive director, served the National Institute of Banking and Finance (NIBAF) — the training arm of the central bank– as its Managing Director from December 2002 to June 2010. He successfully converted NIBAF into a premier centre of learning that is recognized in the whole region. Kazi completed his higher studies from McGill University Canada, London University, Sindh University and Karachi University. Holding Masters Degree, he has to his credit numerous diplomas and certificates in the field of Banking, Islamic Banking, Agri-business, Management, Planning, Energy etc. STAFF REPORT
President approves nominations for NEC ISLAMABAD NNI
President Asif Ali Zardari on Friday, on the advice of Prime Minister, has nominated four members of the Federal Government on the National Economic Council in terms of Article 156(1) of the Constitution. The newly nominated members of NEC are: Dr. Arbab Alamgir Khan, Federal Minister for Communications (MNA from Khyber Pakhtunkhawa); Ch. Ahmed Mukhtar, Federal Minister for Water and Power (MNA from Pubjab); Dr. Abdul Hafeez Shaikh, Minister for Finance, Revenue, Planning and Development, Economic Affairs and Statistics (Senator from Sindh); and Mir Changez
Khan Jamali, Federal Minister for Science and Technology (MNA from Balochistan). The President has also approved the nomination of Mr. Hasnain Mirza, MPA from Sindh as the member of NEC from Sindh. Spokesperson to the President Senator Farhatullah Babar said that according to Clause 1 of Article 156, the NEC comprises of the Prime Minister, the Chief Ministers and one member from each province to be nominated by the Chief Minister. The Prime Minister may also nominate four other members from time to time. He said that although it was neither mandatory nor constitutional requirement yet the former Prime Minister had nominated the above
federal ministers, one from each province, on the NEC. However, they ceased to be the member of the NEC on their ceasing to hold office of the Minister on 19th June 2012, notwithstanding their fresh oath taken on 22 June 2012. Besides, it is prerogative of the Prime Minister to make nominations on the NEC which require approval of the President, he said. Spokesperson further said that the nomination of Mr. Hasnain Mirza, MPA from Sindh as the member of NEC from Sindh was made by the Chief Minister Sindh replacing his Advisor on Planning and Development. The nomination after its approval from the Prime Minister’s office has also been approved by the President also.
Government firmly behind used car wheels KARACHI STAFF REPORT
Higher engine capacity used cars imported during last fiscal year defy the government’s claim of deviating from auto industry development plan, the officials justifying the relaxation in import policy had announced doing so to facilitate import of small segment cheaper cars for consumers. According to Customs data, the used cars’ import exceeded the 50,000 mark by the end of this fiscal year with expected breakup of 8,000 cars of 800cc, 18,000 units of 1,000cc and 14,000 units of 1,300cc and above. As per industry sources data, since July 2011 to May 2012 more than 41,500 used cars have been imported in the country. Besides this, they are causing a loss of over Rs 14 billion revenue to the government in terms of relaxations allowed pertaining depreciation allowance.
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France, Pakistan sign deal for construction of 48 MW Jaggran II ISLAMABAD STAFF REPORT
In a major boost to the small hydel power sector, France on Friday signed an agreement with Pakistan to provide a soft loan of 68 million Euros for the construction of 48 MW Jaggran II Hydropower Project in the picturesque Neelum valley in Azad Jammu and Kashmir. Additional Secretary of Economic Affairs Division (EAD) Iftikhar Ahmed Rao, Ambassador of France Philippe Thiébaud and Country Director of the Agence Française de Développement (AFD) Nicolas Fornage signed the funding agreement for the project. The PC-I of Jaggran-II project is already approved by the Executive Committee of National Economic Council (ECNEC) in November last year at a cost of Rs 7.056 billion. The construction on the project is planned to be start this year and complete within the next four years.
This project relates to the construction of a 48 MW hydropower plant located about 90 km from Muzaffarabad city towards North-East. The project will be built in the upper extent of Jaggran Nullah, a right bank tributary of the Neelum River. It will be located downstream of the existing 30.4 MW Jaggran I hydropower project, funded earlier with French support, and being operated since 2000 by the Hydro-Electric Board (HEB) of AJK government. Jaggran II Hydroelectric Power Project will operate as a run-of-the-river scheme and will not entail any major environmental or social constraints. It will be connected to the national grid, and will help alleviate the energy crisis in Pakistan. Upon its commissioning in 2015, it will provide a reliable source of renewable energy and a permanent supply of electricity for the 1.2 million people living in the Muzaffarabad area, with strong social and economical positive impacts. Pakistan is seeking foreign investment and
expertise, mainly from Europe for the construction of small hydropower plants for which there are ample opportunities in the country. The signing of the deal with France will help attack other European companies to make investment in the sector, experts said. France, through AFD, specifically supports rehabilitation and construction of medium-sized hydropower projects. This source of energy, nonpolluting and renewable, is also the most economical way of producing electricity in Pakistan. The country is blessed by a huge, mostly untapped hydropower potential, with only 6,500 MW of ongoing projects out of a total of 54,000 MW total potential. It is providing funds to address the current national energy crisis. To reduce the power demand, AFD is co-financing with ADB a multitranche programme on energy efficiency in domestic and industrial sectors. To improve the power supply, AFD is supporting the development
of renewable energies, currently with 22 MW Jabban project in Malakand District and Jaggran II hydropower projects. Proparco, a subsidiary of AFD for the private sector development, has also invested 40 million Euros during the last 3 years in the energy sector, including the New Bong Escape Hydropower Project; and is looking forward to supporting Independent Power Producers, energy efficiency, agro-industries and microfinance. AFD has also recently approved a soft loan of 11 million Euros, in order to fund detailed design studies for the Munda hydropower project, located in Mohmand Agency. As a member of the Group of Friends of Democratic Pakistan, France pledged 300 million euros at the Tokyo ministerial conference in 2009. With the funding agreement for Jaggran II signed with EAD, France has now a portfolio of projects amounting to 213 million Euros for the water and energy sector in Pakistan, corresponding to 73 percent of its pledge.