100,000 tonnes of wheat for Iran to pay for power

Islamabad has authorised the export of 100,000 tonnes of wheat to Iran in trade not jeopardised by Western sanctions, to settle dues for electricity supplied to Pakistan’s energy-starved border areas, the Commerce Ministry said on Friday. The shipment of 100,000 tonnes was to be delivered to Iran in mid-February but was delayed by preparations for Pakistan’s May 11 election. “The wheat is being given to Iran against the outstanding payment of $53 million for electricity supplied to Pakistani border areas from the Iranian grid,” ministry spokesman Mohammad Ashraf said. “The interim cabinet has approved the decision and exports will be initiated as early as possible.” The European Union and the United States have imposed toughened sanctions meant to discourage Tehran’s nuclear programme, which they say has a military purpose. Iran rejects that claim, saying its programme aims at the peaceful production of electricity. Western sanctions do not target food shipments, but financial measures have frozen Iranian companies out of much of the global banking system, hindering payments for imports, on which Iran relies for much of its food. Pakistan is battling a chronic energy shortage, which is inflaming public anger and stifling industry. Power outages can last eight to 10 hours a day in cities, with much more frequent cuts in rural areas. “Pakistan is an energy-starved country facing severe power cuts that are badly hampering industrial output,” Ashraf said. “Connecting far-flung areas to Pakistan’s grid is a costly affair.” Electricity from Iran costs Pakistan around $3 million a month and is supplied to towns near the Iranian border, including the port city of Gwadar. Pakistan also says it is building a $7-billion gas pipeline with Iran, despite U.S. pressure on Islamabad to back out of the project.

CCP hits LDI operators unfairly

CCP-1

The Competition Commission of Pakistan (CCP) finally came up with an order on 30 April, regarding the fate of amounts charged on making international telephone calls to Pakistan. In its order, the CCP had the Pakistan Telecommunication Company Limited (PTCL) and 13 other long distance and international telecommunication service operators (LDI operators) in its sights and has now ruled against these LDI operators. In total, LDI operators were fined over Rs 9 billion, with the major share against PTCL (Rs 8.3 billion). This is in addition to the Rs 8.6 billion ordered against urea manufacturers, Engro Fertilizers Limited and Fauji Fertilizers in March. Needless to say, many are questioning the motive behind CCP’s decisions during the tenure of an interim government. The CCP’s order focuses on an agreement entered into by PTCL and the other LDI operators in 2012 known as the ICH Agreement. Strangely the LDI operators were ordered by the Ministry of Information and Technology (MOIT), the federal ministry responsible for telecommunications, and the Pakistan Telecommunication Authority (PTA), the regulatory body for the telecommunication sector, to establish an organisation known as the International Clearing House (ICH). The ICH Agreement provides for the LDI operators to put in place a set of tariffs for all incoming international telephone calls. The tariffs are then passed on to the international telephone companies, through which calls are made to Pakistan. So, in fact, no one in Pakistan was actually a ‘victim’ of the so called ‘cartel’. Subsequently the PTA declared that only PTCL’s infrastructure was to be used for international telephone calls. An important factor to note is that the MOIT and the PTA have always been the ones to set tariffs; and that the LDI operators and PTCL were simply following orders of the federal government and the regulatory body. However, the CCP has overruled such observations and declared itself and the Competition Act, 2010, as an all powerful body with the power to overrule the role of the government. The thrust of the CCP’s order is basically this: “You should not have listened to your bosses and regulator and you should have listened to us as we are more important.” This sounds almost childish but, alas, it is true. Rather than make such declaratory statements, it would have been more prudent to refer the matter to a judge, or the attorney general to determine the issue of legal supremacy. If one was to look at the larger picture, one must ask who actually benefits from the CCP’s order. It surely is not the average Pakistani who the CCP paints as the victim. After all, PTCL’s major shareholder is the Pakistani government. No doubt PTCL is a well performing company, but there is almost no chance it has over Rs 8 billion in its reserves. Therefore, the company will have to ask its shareholders for further capital, and effectively the government would have to bail out PTCL, only then to receive the fine once it has been paid. Of course with any crime, we must consider the motive. The officers of PTCL had nothing to gain personally from entering into the ICH Agreement. They were ordered to do so by the government, having been appointed by the government. In newly privatized companies, there is often a sentiment that the government is still the paymaster. Furthermore, why is the order not directed at the MOIT or the PTA, and why were they not made a party to the CCP’s investigation? After all, these are the parties that ordered the LDI operators to enter into the ICH Agreement, notwithstanding the fact that they ignored the CCP’s earlier requests to desist from insisting on the agreement; and so they would have to be penalised in addition to the LDI operators. Perhaps the MOIT and PTA could have justified their instructions to the LDI operators. It could well be that the CCP did not consider such bodies to be under the remit of the Competition Act, 2010. If this was the case, then the same argument would apply to PTCL. There is much confusion, to date, as to whether PTCL is a public body or a private one, and even the Honourable Supreme Court has not provided a definitive answer on that. Many parts of the CCP order simply do not make sense. Many of the cases relied upon by the CCP are its own former judgments. Technically, this is possible but looking at the holistic picture, it appears that CCP officers are simply justifying previous judgments. However, it is not clear whether these judgments were later approved, or set aside by courts. Further, the order, as a matter of fact, states that international telephone call traffic has been reduced by high tariffs set by the LDI operators and the ICH Agreement. However, it is not clear how the CCP reached such a conclusion. There are a variety of reasons why international call traffic has declined. For instance, the growth in VOIP services, such as Skype, social media and the fact that people simply talk less and prefer to use other mediums such as emails, are major factors. TeleGeography, a telecommunications and market research firm based in the USA reports that overall, since 2004, the growth rates for international calls, globally, has been in steady decline. Is this because of cartels squeezing telephone operators? Of course not. In addition, the CCP often seeks reliance on the decisions of cases in other jurisdictions. Competition law in the European Union and the United States of America (USA) is much more advanced than in Pakistan, with the European Union regarded as being even more advanced than the United States in terms of the scope of its decisions. It is therefore common to find many of the CCP’s orders littered with references to decisions of the European Competition Commission. However, the order seems to rely mainly on American law. To see why this is the case, one must consider the nature of what MOIT and PTA have done. Effectively, they have provided aid, which when given by a governmental body is known as ‘state aid’, to the LDI operators. Generally, European competition law prohibits state aid; but European law does allow such aid in a number of limited circumstances. It is arguable that if reliance was placed on European law, the CCP would have had to apply the exceptions and thus negate its very own enquiry. Another issue that the CCP has ignored is security. This is not the forum for a discussion on the moral justification for eavesdropping telephone conversations, but it is a sad fact that there is a need to monitor a small percentage of telephone traffic. Surely it would be easier for the security agencies to monitor telephone traffic through one network rather than more than two dozen international networks? It seems that the issues that have arisen from the order can now only be resolved in court and thus cause further burden on the public exchequer- so watch this space!

Business community wants Shahbaz as energy minister

All Pakistan Anjuman-e-Tajiran Central General Secretary Naeem Mir on Friday said the business community wants Shahbaz Sharif as energy minister to resolve the energy crisis. The former Punjab chief minister is very capable of resolving the energy crisis engineered by the former Pakistan People’s Party government, he said. Talking to Dr Murtaza Mughal, President of the Pakistan Economy Watch, Naeem Mir said that Pakistan braved massive mismanagement and corruption for years which triggered inflation, unemployment and economic meltdown. The former governments wasted billions of rupees of taxpayers’ money only to further deteriorate ailing power sector and public sector enterprises. Mir demanded imposition of power emergency and giving control of power distribution companies to provinces. He said that tax amnesty schemes are counterproductive as budget deficit can only be bridged if big evaders are brought to book. Government should initiate legislation to forfeit assets of tax evaders and to bring stolen funds back from the Swiss banks, he demanded.

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Raoof Hasan Raoof Hasan
A hate-speech that elicits unprecedented protest Altaf Hussain’s hate-speech of May 12 was a spate of threats hurled at just about everyone in the country – be it institutions, political parties, or individuals. No one quite escaped the venom of his excruciatingly painful outburst. Accusing the establishment for its partisan role, he cautioned: “If you don’t stop playing with fire, it would burn the entire Pakistan down”. He threatened the Election Commission of Pakistan (ECP) “to reach a decision with honesty or else they would not be able to find a shelter”. Warning the workers of another political party who have been protesting the alleged rigging in the May 11 elections at the Teen Talwar Chowk in Karachi, the British national thundered that they should behave or else he could unleash his party workers on them who “would dismember them into pieces with their swords”. He demanded that if the (allegedly rigged) mandate in the city was not respected, “Karachi should be separated from the rest of the country”. He threatened that if opposition was not stopped, he would let his followers “act freely on their own. How can I control them and for how long? Altaf Hussain should not be blamed if a war breaks out among the people. Whoever attempted to conduct propaganda will face war”. When his hate-speech elicited the obvious negative reaction from the public and the media, and the phone lines of the London Metropolitan Police were literally jammed with calls to the British government to initiate proceedings against the Queen’s subject, he came up with another fiery outburst on May 15, this time against the media, more notably its anchorpersons: “If you don’t mend your ways, somebody from the organisation of millions of people might lose his mind. If that person does something bad to one of you, don’t blame the MQM or Altaf Hussain”. He continued puking venom: “If the MQM ran out of patience, then neither the anchors nor the owners of the media houses would find a place to hide”. A spokesperson of the London Metropolitan Police confirmed the receipt of ‘floods’ of calls from Pakistan, the UK and elsewhere against Altaf Hussain’s hate-speech. He also said that an investigation (against the MQM chief) was underway”. The British High Commissioner to Pakistan Adam Thomson also commented on the episode. He confirmed the receipt of complaints, but tried to absolve the government of the UK from any responsibility in the matter saying that “unlike some countries of the world, the British police are fiercely independent of the British government and it is for the British police to investigate allegations of incitement to violence or hatred”. The High Commissioner, however, conceded that the London Metropolitan Police have been flooded with complaints about (Altaf Hussain’s) remarks. “What we say is that wherever somebody has a concern that hatred or violence is being incited, that one community or another is being turned against others, this should be reported to the police. And I know that they take such allegations very, very seriously indeed”. He further said that “if proved guilty, the MQM chief could face a jail sentence”. He did not rule out the prospect of handing over Altaf Hussain to Pakistan, but said that, in the absence of a UK-Pakistan Extradition Treaty, it would have to go through the whole process which is complicated: “It does not make it impossible, but it does make it quite difficult”. Karachi has been a hostage to violent and hateful machinations for over thirty years now, which the MQM and its leadership have unleashed on its hapless people with murderous abandon. The MQM are decidedly the original architects of the phenomena of extortion and murder in Karachi which has been used to perpetuate an environment of fear in the city. Thousands have been tortured and brutally exterminated with blood-soaked pieces of their bodies thrown all over the city in gunny bags. It has let lose a spree of murder ever so often to caution the residents against the prospect of freeing themselves from perpetual enslavement. The threatening demeanour and the foul language used by the MQM leadership leave little to the imagination. These endless threats have been unduly rewarded by various governments with invitations to the MQM to become partners in ‘democracy’ and dictatorship alike. Quite literally, the MQM has been a part of all provincial governments of Sindh and the federal governments over the last thirty years or so. No principles. No qualms. The extortion must continue. The killing spree should not end. The governments have been aware of this. The security agencies know of this. The intelligence agencies cannot feign ignorance either. What has the combined might of the state done to undo this harrowing spectre that threatens to dismember the country and advancing self-promoting gory objectives? Encourage them further by inducting them as partners in the governments and awarding them lucrative ministries to add to their illicit earnings? Seek their support to save their failing governments by issuing endless statements acknowledging their contribution to ‘democracy’? Quite simply, it has been a case of unremitting shame. What was the cause for this latest venomous outburst of the supremo? Quite simply, for the first time since the inception of the MQM, the supporters of another political party were able to break the shackles of fear and go to the polling stations to cast their ballots. So, true to tradition, the MQM literally hijacked the entire election process in connivance with the Returning Officers and other ECP officials who were just too scared to stand up to their murderous tactics. The MQM expects this mandate of fear to be accepted without questioning. For once, the people are angry. They appear unwilling to surrender their right to choose the leadership of their liking. They are protesting. They want justice. They are demanding re-polling under the army supervision in all constituencies of the city. They want an end of the politics of murder and extortion that has been practised through the last thirty years. They have a right to that and it is the state’s responsibility to ensure it. There are no two ways about it. The politics of fraud must cease. The people of Karachi want their freedom from fear and violence that they suffered from endlessly – and they must have it. They must also have their freedom to choose the leaders of their liking. The ECP must ensure that. The state must ensure that. It should not be left to the goons of terrorist outfits garbed as political parties to decide the fate of the people of Karachi, and that of Pakistan. A word for the British High Commissioner: instead of hedging your responsibility in the case of investigating the conduct of one of your citizens, you should advise your government to expedite the enquiry against him. For your added information, the two laws under which he can be tried and punished are the Anti-Terrorism Act 2008 and the Racial and Religious Hatred Act 2006. Meanwhile, and pending the results of the enquiry, appropriate restrictions should be clamped on his speech so that he would not be able to incite the people of Karachi to violence and hatred. They have had enough of that. It is time for them to move on – towards turning Karachi into the glorious city of lights that it used to be, not too long ago! The writer is a political analyst. He can be reached at raoofhasan@hotmail.com

Zeeshan Salahuddin Zeeshan Salahuddin
Change takes time There is an argument to be made that Pakistanis favour the status quo over the revolution. The other side of this coin insists that the status quo has been challenged, and perhaps even changed. Both sides are right. Nawaz Sharif maintained the status quo, Imran Khan changed it. The lion of Punjab now rules this familiar jungle. Promising motorways, airports and bus services, Nawaz Sharif rode on the tidal wave of rhetoric generated by his urban development projects and his six nuclear detonations establishing Pakistan as a nuclear power, and swept through the country. With the tally hovering between 125 and 130 seats for the PML-N in the centre, the great lions of Punjab need literally no other party to form the federal government. They might extend an olive branch to old compatriots like Maulana Fazlur Rehman’s JUI-F, perhaps in an attempt to weaken an opposition that will inevitably be forged out with some permutation of rival parties, but the lion reigns supreme. Despite allegations, it stands to reason that national rigging of this scale and calibre is implausible and improbable. The Sharifs’ love-hate relationship with the general population, demonstrated most visibly by the on-again, off-again relationship they have had with the central seat of power, continues unabated by the political pendulum that seems to swing only between the PML-N and the PPP. On the other side of this coin are you, the PTI supporters, who rose to the occasion for Imran Khan. You stood in line for 10 hours in certain cases, rode around urban centers in vehicles adorned with party flags, and made a stand beyond the relatively safe comfort zones of your homes. You ought to be lauded for your resilience, your affinity for what you perceive to be positive change, and your dedication in the street protests post-elections. The protests are warranted, and as citizens you are well within your rights to demonstrate and share your dissatisfaction with the results. But all of it is for naught, as beyond the scope of what you “burgers” wish to see, the “illiterates” have already chosen our collective fate. There are three reasons you should rethink your role, go home and prepare for the coming fight. First, you are leading to class warfare that will inevitably hurt your long-term goals. Voting your mind is not backwards or wrong. Outside the security blankets of the urbanites, there lives a Pakistan that is so disenfranchised, so far out on the fringes, that it cannot imagine voting for leaders with no political track record and no sense of real identification with their problems. Just because the galvanized upper class and upper middle class can afford to look past putting food on their tables and into what the future may hold, does not mean these concerns are shared by the rest of the population. Their idea of democracy and the strength of their vote matters no less and no more than yours does. Former Law Minister Punjab Rana Sanaullah already referred to the protestors as “mummy daddy” in order to alienate them further from those that simply do not place much faith in Imran Khan’s ideology. And the ruse is working, as the other side is already labeling this as class warfare, saying the rich are trying to impose their version of democracy, truth and liberty on the uneducated ‘paindoos’. Imran Khan’s battle has only just begun, and the fact that his message was not able to permeate the mindset of the middle and lower classes will need to be categorically and systematically addressed by the PTI in the coming years. Because one thing is for certain: without these votes, there can be no decisive victory in the centre, and these very votes are being ridiculed and estranged further. Go home PTI supporters, you’re disillusioned! Second, you are on a fine line between supporting your favourite leader, and being seen as worshippers of a one-man cult. Imran Khan, in less than two years, has become a force to be reckoned with, a new political awakening that has caused the Pakistani Twitteratti and the drawing room warriors to turn out in droves, cast their votes, and flood Facebook with photos of purple thumbs. It was not enough for a clean sweep, but it was enough to forever change the status quo. The PTI secured 30-plus seats in the national assembly, and it will likely form the government in the highly volatile KP. The PTI supporters should celebrate this, it is a remarkable accomplishment. But at this point, with protests that have been largely registered, and the ECP re-polling/recounting in certain constituencies, as well as FAFEN’s preliminary report stating that these elections do “reflect the free will of the electorate through a relatively fair process”, this is becoming a tad pointless. You wear the Kardar shirts, wail for a lost future where you could swing the Bat of Justice against the forces of Corruption, and imagine Imran Khan as the long-awaited messiah who has been thwarted by widespread rigging and widespread ‘jaahils’. He has his work cut out for him. He has a tough fight in the centre, trying to keep the government in check, and he has to bring transformation to the KP in order to forever cement his reputation as an agent of change. Help him move forward, don’t entrench him in what is done and mostly over with. Go home PTI supporters, you’re disillusioned! Third and finally, you fail to see what this country has gained in the process. We are a long way from the ever-elusive idea of democratic maturity, but we have crawled a few inches towards it, and we have fought and bled and suffered to gain every last inch. We are the first people in the 66-year history of the country to not only witness a civilian handover of power, but also to figure out how this process works, and how we can continue to improve on it. Despite 180 killings in 30-plus incidents of election violence, the public defiantly turned out to vote, with initial ECP estimates at 60 per cent, up from the 44.4 per cent in 2008. The marginalized transvestites were not only allowed to vote in the elections, several transvestite candidates ran for elections. Badam Zarri rose for her people in what the foreign media describes as “the lawless tribal frontier”. Despite vast differences in political ideologies, all parties united to push the government and the ECP for timely elections, and as promised we all voted on May 11, 2013. A lion roared, an arrow missed the mark, and a bat scored a few crucial runs. And right after elections, Nawaz Sharif paid a friendly visit to Imran Khan in the hospital. This is unprecedented. This is history in the making. We cannot be held back by our collective need to impose our individualistic version of how it should be on everyone else. We must come together, support the system. Go home PTI supporters, you’re disillusioned! Instead of decrying the results, you can appreciate and recognize how far we have come, and maybe, just maybe, these small victories will lead to something bigger, better and beautiful. Change takes time. This is not the end. This is just the beginning. The writer is the Executive Producer for the Planning and Research Department at Capital TV,

Zoya Ashraf Zoya Ashraf
Change is a slow process, sometimes painfully slow Addressing the Punjabi Muslim Students Federation at Lahore on October 31, 1947, Jinnah said: “Pakistan is proud of her youth, particularly the students who have always been in the forefront in the hour of trial and need. You are the nation’s leaders of tomorrow and you must fully equip yourself by discipline, education and training for the arduous task lying ahead of you. You should realise the magnitude of your responsibility and be ready to bear it.” It is clear from Jinnah’s statement that youth is an integral part of the state as they are the leaders of tomorrow. However, in today’s world, leadership is not the only trait one should look for in the youth, another closely related quality is also of great import: the aptitude to bring change in society. Youth today has whatever it wants at its disposal and our laws provide them the rights to freedom of speech, assembly and association, but using law for personal petty interests is not good. Instead, they should be used to create pathways for the sake of national interests. By doing this, they sure will create a window of opportunity not only for themselves but also for other people. Youth also needs to come forward to voice their opinion and not be afraid of learning from experiences of others. One of the ways where they can put their collective efforts is on how to improve the education system because it is they who are going through it and they know well what they need. If it doesn’t bring any change, it will at least lay down ground work for this debate to become mainstream and national. Youth is often attributed to change and change is good. Without change there would only be stagnation and then decay will take over. Change is not an event that can happen overnight, it’s a process, a slow and steady process. If people expected the youth to change the future of Pakistan in the elections, they were in for a surprise. Youth brings change through their fresh intellectual fervor and the results can differ from region to region and context to context. However, in Pakistan’s case, what they have done is that they have opened up for discussion the very possibility of change in the country. People should not fall prey to the utopian ideals of change; they should know that it is a slow, sometimes painfully slow, process. Answering that all too important question as to how youth can utilise their abilities to bring change is simple and complex at the same time. They need an ideology to initiate the process of change and awareness level about any initiative they might take needs to be increased. Educating the masses of Pakistan will be equivalent to achieving a milestone in itself. It is here the youth can play an important role, by educating people. For example, informing people about the importance of vote, why to vote and who to vote for was a challenging task, still they did it and with such huge success. More important than all, a process of dialogue should be initiated as dialogue has the power to change things upside down. The youth of Pakistan has the potential to work as one of the agents for change; they can prove to be an important part of this dialogue. Apart from bringing a change in the system, the issue of conflict resolution also needs to be addressed. Pakistan is in a state of constant conflicts with its neighbours and a number of internal ones. In this age of globalisation, one should address the conflicts and indentify the problems. Our problem is that we start the process of conflict resolution without even identifying the problem. Bangladesh, once our part, seceded from us in 1971 but no effort was made to stop this secession nor was the conflict addressed in a proper manner. For closure, Bangladesh wants our apology which is not too outlandish to ask for from their perspective. If the government is not up for an apology, at least a dialogue process can be started. Here the youth can also work better than most of the others. If someone has to take initiative for a dialogue, why not youth? Let’s keep politics out of this matter and see the results. Our youth can get in touch with the youth of Bangladesh and get to know their perception and then after having a dialogue, the issue should be taken on the state level. Things might actually turn up positively after this attempt. Youth has an opportunity to prove their worth, and not just the one they had in elections. If they work hard, their agenda is positive and they have a vision, a positive change should not be out of reach. Not all is black and white, so to speak. Much is grey still, and that’s where the youth has a chance to prove their worth.

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PSM to make efficient use of Rs 11bn bailout package

The Pakistan Steel Mills (PSM) has reorganised its maintenance, operational and production strategy as the raw-material-starved steel producer is restlessly awaiting the materialisation of Rs11 billion bailout package the federal government had recently announced. “The PSM management has reorganised its strategies to get maximum benefit of the bailout package within minimum possible period,” said a spokesman of PSM. He said it had also been planned to establish a continuous supply chain of iron ore and coal. The placement of order and shipment of raw materials had also been planned to maintain at least 90 days stock of raw material, specially iron ore and coal, he said. The spokesperson hoped that the package will soon be given to Pakistan Steel. The entire bailout package, he said, will only be used for the procurement and import of raw materials i.e. iron ore and coal to enhance the production to 80pc by the end of this year and in first phase 60% by the end of August 2013. The recent announced bailout package of Rs 11 billion would be given through a single tranche in a shape of soft loan being provided by National Bank of Pakistan under the guarantee of the federal government. The spokesman said a bank consortium is formed to work out the working capital requirement of Pakistan Steel and arrange funding accordingly.

Bangladesh sets eyes on Iranian gas via IPI pipeline

Joining the Iran-Pakistan-India gas pipeline project would give Bangladesh access to Iranian gas and resolve its energy crisis, Bangladeshi Finance Minister Abul Maal Abdul Muhith said on Friday. Bangladesh has a natural gas deficit and at some point the country would have to import gas, Muhith told journalists after a meeting between Bangladeshi and Iranian officials in Dhaka. “If the IPI gas pipeline is expanded up to India we can join it,” said the minister. When the pipeline is built from Iran to India, it will come to West Bengal of India, which is close to Bangladesh, he added. Mehdi Ghazanfari, Iran’s minister for industry, mines and trade, said it would be “quite possible” for Iran to export gas to Bangladesh. The possibilities of importing LNG from Iran was also discussed in the meeting. But that was discounted in the immediate term by Muhith. “It is better to import natural gas through pipeline instead of importing LNG,” Muhith said. Bangladesh will also consider LNG imports from Iran after building necessary import facilities in the next two years. “But, since the IPI gas pipeline is coming to India, we are willing to join the pipeline,” he said. The proposed IPI pipeline would be 2,700 km (1,620 miles) long and would bring gas from Iran’s South Pars fields in the Persian Gulf to Pakistan’s major cities of Karachi and Multan and then to Delhi, India. Its estimated cost is $7 billion. India, which has been boycotting formal talks on the project since 2007 over security concerns, recently has shown interest to re-enter negotiations for the project.

Expectations subdued as fiscal gap set to widen by 6.8pc in FY13

During 9MFY13 the overall revenue base of the government grew by 22%YoY to Rs2.125 trillion. The tax revenue on the other hand improved by a nominal 11%YoY to Rs1.528 trillion and non-tax revenue increased by a massive 62%YoY to Rs597bn. “The massive increase in non-tax revenue is due to the inflow of $1.9bn in the form of Coalition Support Fund (CSF) during the period,” viewed Abdul Azeem, an analyst at InvestCap Research. The government set the initial target for total tax revenue at Rs2.381tn however the same was revised downwards three times during the period having now reached to Rs2.116tn. Moreover, with the initial expenditure target of Rs3.203tn, the fiscal balance was budgeted at a deficit of Rs1.105tn or 4.7pc of the GDP. During the last five years, Azeem said last quarter of the fiscal year remained the worst as compared to other quarters of the years. “The trend reveals that average fiscal deficit hovered around 2.3% of GDP during the last quarter of the fiscal year as compared to 1.4% during the remaining three quarters,” he added. The higher realization of expenditure of 6.8% of GDP as compared to 4.4% during remaining three quarter of the year has been the main concern behind the rise in fiscal deficit, he said. During 9MFY13, the government has repaid the amount of Rs772bn on account of debt servicing, 3.3% of GDP, as compared to Rs624bn or 1.7% of GDP in the same period last year. In addition to this, the government has also provided Rs315bn in the form of subsidy till May, 17 this year. The new government is expected to take oath during May, it is therefore unlikely that the gov’t will be able to bring any abrupt improvement given the prevailing situation on the revenue front for FY13. “However, some constraints are yet to be seen on the expenditure front during the last quarter as the caretaker government has stopped the funds for different ongoing projects,” said Azeem. Incorporating all developments, the deficit figure is still expected to touch 6.8pc of the GDP, higher than the target of 4.7% for FY13, the analyst said.

Experts urge solid measures to meet energy needs

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Experts at a conference underlined the need for taking solid steps to effectively explore and utilize natural resources, especially coal to meet the country’s growing energy needs. Presenting Energy Vision 2030 at a conference titled, “Solutions for Energy Crisis”, organised by Islamabad Policy Research Institute (IPRI) and Hanns Seidel Foundation, Islamabad Dr Shaukat Hameed Khan, Vice Chancellor Sir Syed CASE-Institute of technology said there was grave dichotomy at the policy base which resulted in offering quick and effective solutions to the power shortage problem being faced by the country. “The energy system was not attuned to technology which determined the demand supply equation and there were home grown solutions available and coal above every other resource offered a natural option but planners had been neglecting these for over three decades now,” he said. Unless the new government harmonized its fragmented governance in this respect it would be hard to end power outages anywhere in the near future, he said, adding that the country would need $210 billion in the next 20 years to meet the growing energy needs. He favoured coal-based energy but since mining of Thar coal could take long Pakistan should import coal for immediate use in place of diesel and furnace oil. Amidst this hard and realistic account of the state of energy a very emphatic and bright presentation was made by a young scientist Salman Qaisrani, Director, CWS Technologies, who claimed that the Coal Water Slurry Combustion Technology offered the cheapest, quickest and most workable solution in the short and medium term as it was based on local coal reserves of Thar. The present thermal power units now using expensive imported furnace oil could easily be converted to use this formulated material which would reduce by one third the present cost of power. He claimed the entire changeover could be accomplished in six months to one year, saying it was not a new technology and was in use in Russia and China while India was using it through imported coal. Earlier NA Zuberi, Managing Director, Private Power and Infrastructure Board, said the private sector was producing the bulk of the electricity (46 %) but shortage of fuel and funds was constraining generation growth. He said work was apace on the feasibility of Mega Power Parks based on imported and local coal. If these parks materialized the country’s energy shortage would end, he added. Advocate Ameena Sohail, senior associate at IPS, spoke on impact of 18th Amendment of the constitution on energy generation and called it merely cursory as much remained to be done by the Council of Common Interests (CCI) that needed to be activated in this regard, particularly in respect of the Strategic Plan of 1992. Barrister Aeman Maluka spoke on energy conservation efforts which she said only existed on paper as the policy of self regulation by industries was a failure in the absence of an overseeing mechanism. She said environmental taxes also could not be imposed in a country where tax theft was rampant. Dr Nazir Hussain of QAU spoke on diplomacy and international dimension of energy management.

FEG to be scrapped in favour of 10th five-year plan

Dissention amongst the top ranks of economists in the country has led the caretaker government to call for scrapping of the Planning Commission’s Framework for Economic Growth (FEG), in favour of the 10th Five-Year Economic Plan. According to details, The FEG had been prepared by former Planning Commission deputy chairman Dr Nadeemul Haq, who was recently dismissed from his post by the caretaker govt. When Dr Haq became the deputy chairman, the Planning Commission had been preparing the 10th Plan for 2010-15, which he ordered to shelve. In its place, he had provided his own strategies for economic development. The FEG was later approved by the National Economic Council, the country’s highest economic decision-making body. However, the FEG was never implemented and lacked broader acceptance. The 10th Five-Year Plan is a draft document put together by the current finance adviser’s brother, Dr Rashid Amjad, in the latter’s capacity as acting chief economist at that time. Dr Rashid was relieved of his duties when Dr Haq took over as deputy chairman of the Planning Commission. Differences between the Plan and the FEG The main focus of the Five-Year Plan (2010-15) was on increasing investment in education and health and to improve living standards. The Plan had also promised to usher in an era of development in parts of the country that had remained underdeveloped thus far. FEG’s strategy on the other hand was based on sustained reforms that would build an efficient and knowledgeable governance structure, and create markets in desirable and well-connected locations.

PASSCO purchases over 600,000 MT of wheat

Pakistan Agriculture Storage and Services Corporation (PASSCO) purchased more than 600,000 metric tonnes (MT) wheat in the current season. Distribution of `Bardana’ (empty bags) continues at wheat procurement centres of PASSCO in various parts of the country under a fair and transparent policy, managing director Maj Gen Tauqeer Ahmed said on Thursday after visiting various wheat procurement centres. Strict vigilance was being done by our officers nominated for the task, he said. He said during his recent visit wheat growers from various zones had expressed confidence in the transparent procurement policy of PASSCO. He further said he had issued instructions to field officers to strictly follow the criteria laid down under the wheat procurement policy 2013. “We want to ensure that farmers get due return of their produce and avoid all types of discounts they have to face by the hands of middlemen,” he said. “Stability in the price of wheat is our prime object to protect interests of farmers,” he said. He said presence of PASSCO in the market to procure wheat from farmers was a solid reason behind stability of wheat prices.

Service trade deficit narrows 81% in 3 quarters

Pakistan services trade deficit narrowed by 80.99 percent during the first three quarters of the current fiscal year as exports surged by over 36.94 percent with imports showing negative growth of 4.33 percent The overall services’ exports from the country were recorded at $5.336 billion during July-March (2012-13) against exports of $3.896 billion during July-March (2011-12), showing growth of 36.94 percent, according to data of Pakistan Bureau of Statistic (PBS). On the other hand, the imports of services into the country during the first three quarters of the current year decreased by 4.33 percent by going down from last years imports of $ 5.994 billion to $5.735 billion, the data revealed. Based on this data, the overall trade deficit during the period under review was recorded at $ 0.398 billion against the deficit of 2.097 billion during last year, showing a negative growth of 80.99 billion. However on a year-on-year (YoY) basis, services exports from the country decreased by 2.91 percent in March 2013 as against the same month of last year. Exports of services during March 2013 stood at $0.440 billion against exports of $0.454 billion during March 2012. On the other hand, imports of services into the country witnessed nominal increase of 0.28 percent, going up from $0.667 billion during March 2012 to $0.668 billion in March 2013, the PBS data revealed. On a month-on-month (MoM) basis, exports as well as imports of services increased by 33.10 percent and 22.50 percent, respectively, during March 2013 against February 2013. According to the PBS data, exports of services during February 2013 were recorded at $0.331 billion whereas imports stood at $0.546 billion.