FOLDER - PAKISTAN and Muslim World (09/2002)

Society Pakistan & World Affairs
1

SOURCE: JANG-GROUP Bahrain Lauds Pak Promotion of S&T in OIC

KARACHI: Shaikh Hamad Bin Isa Ali Khalifa, the King of Bahrain has appreciated the initiative taken by Pakistan for the promotion of science and technology in the OIC countries. Khalifa stressed on the need of investing in research and development activities in science and technology.

He made these remarks during a meeting with Dr Atta-ur-Rehman, Federal Minister for Science and Technology, who called on him in Bahrain as a special emissary of President General Pervez Musharraf, a press release of the Ministry of Science and Technology said on Monday. Atta delivered a letter of General Pervez Musharraf about setting-up of a Pan Islamic Fund for research and development activities in science and technology.

Bahrain’s Minister of State for Foreign Affairs Dr Mohammad Abdul Ghaffar, Minister of Royal Court Affairs, Shaikh Khalid bin Ahmed Al Khalifa and Pakistan’s ambassador in Bahrain Lt General (retd) Mohammad Shafiq were also present on the occasion.

Shaikh Hamad Bin Isa Ali Khalifa hailed the bilateral ties between the two countries. Emphasising on the need of enhancing co-operation in various fields of science and technology, he showed keenness to enhance collaboration in areas of mutual interest.

Assuring the minister of his full support to the proposal, Shaikh Hamad Bin Isa Ali Khalifa said: “We are sailing in the same boat. We are carving same policies of Muslim brother-hood. We have joint destiny”, said the press release. Atta explained the objective and rationale behind setting-up of the fund. He said; that during the 10th COMSTECH General Assembly in Feb this year, the delegates concluded that the dismal state of scientific and technological development in Muslim world was the main reason of its underdevelopment.

Atta said that in today’s knowledge based world, the use of advancements in science and technology and the creation of their linkages with industrialisation form the basis of sustainable economic development.

2

SOURCE: JANG-GROUP. Arabs Plan To Buy Bank In Pakistan

NAIROBI: Influential bankers, who are keenly watching the prospects in the banking industry east and west of Kenya, say that some Arabs are interested in buying a bank in Pakistan. “One member of the ruling Saudi Arabian family has shown interest in buying a bank in Pakistan,” one banker told this correspondent, who is visiting Kenya nowadays.

The banker said a member of the Saudi royal family had filed an application with the State Bank of Pakistan (SBP), seeking its no objection to take over the bank in Pakistan. One official of the SBP could not confirm the news immediately but promised to give information, if any, on Tuesday.

One local banker said some Pakistani banks, which were facing liquidity problems, were likely to attract foreign buyers particularly from the Arab world. One analyst at the Karachi Stock Exchange said the market was bubbling up with buying enthusiasm in blue-chip stocks after a number of Arabs, according to the Financial Times report, had withdrawn some $200 billion from the United States recently.

The Financial Times quoted Youssef Ibrahim, a senior fellow at the US-based Council on Foreign Relations, as saying that Saudis had pulled at least $200 billion (204 billion euros) out of the United States in recent months. Youssef Ibrahim said the withdrawal had been fuelled by calls from some hardliners in the United States for a freezing of assets held by investors from oil-rich Saudi Arabia in the aftermath of the September 11 suicide hijackings.

Economists trying to track Saudi investments abroad as storm clouds gather over the kingdom have found little evidence so far of the repatriation of hundreds of billions of dollars. “The Arabs will not stuff the money in pillowcase,” the analyst said and added: “They are hovering over Malaysia, Indonesia and Pakistan and crystal-gazing opportunities.”

3

SOURCE: JANG-GROUP. Pakistan Eyes ME, Far East For Arms Sale

KARACHI: Pakistan is eyeing the Middle East, East and Far East of Asia to sell anti-tank, anti-aircraft, surface to air missiles Anza II and modified light submarines, said Major General Syed Ali Hamid, director general Defence Export Promotion Organisation (DEPO). He was talking to The News at a local hotel here on Monday on the sidelines of a seminar - part of IDEAS 2002, International Defense Exhibition and Seminar, which kicked off the same day.

Pakistan is already supplying Anza II to Malaysia, he said in reply to a question about response of visiting countries to IDEAS 2000, which was held for the first time in year 2000. There are also several queries from other countries of East and Far East Asia, he added.

Replying to another question, he said Iran and other countries of Gulf are very much interested in submarines. It is expected that Pakistan will hit a jackpot in near future, he said without going into details. Since, it is defence matter, no one (especially buyers) wants to disclose their deals, he said adding several factors are involved in a deal.

Looking confident and assured chief DEPO, said Pakistan is inching towards target of achieving a significant share in the international market of arms. He was optimistic about the quantification in arms sales figures. We are setting new trends in the commercial export business, he said. Agreements with the friend countries for the sale of arms and ammunition will not only bring in foreign exchange but also have strategic importance for the country, he said.

4

SOURCE: JANG-GROUP. President To Open Islamic Commercial Bank

KARACHI: President Gen Pervez Musharraf is scheduled to inaugurate today Pakistan’s first scheduled Islamic Commercial Bank, which has a 50:50 joint venture between the governments of Pakistan and Kuwait with a total equity of Rs4.5 billion. In a message on the occasion, President Musharraf said: “It is indeed a mater of great satisfaction for me that Meezan Bank has now commenced its operations as the first scheduled Islamic Commercial Bank in Pakistan.”

The president said the government is committed to introducing Islamic banking in Pakistan. Contrary to popular belief, one does not have to dismantle the existing banking system to introduce Islamic banking in the country. Islamic banking can take routes and grow in parallel to the existing conventional banking system. In a separate message, Finance Minister Shaukat Aziz said: “For Meezan this is a tremendous opportunity to demonstrate that Islamic Banking can cater to modern day business needs and provide full service commercial banking services.”

Meezan Bank commenced its operations in October 1997 as an Investment Bank. The mandate given by the shareholders was to establish Islamic Banking as the banking of first choice. Meezan Bank shareholders represent top financial institutions from Pakistan and the GCC countries.** Its main sponsor is Pakistan Kuwait Investment Company, which is a 50:50 join venture between the Governments of Pakistan and Kuwait with a total equity of Rs4.5 billion.**

Pak-Kuwait is the only AAA rated private sector financial institution in the country. Its co-sponsor Shamil Bank, is one of the major Islamic commercial banks in Bahrain. Other key shareholders include Islamic Development Bank, Jeddah, Kuwait Awqaf Public Foundation, Saudi Pak and recently Societe General, Paris. Beside the Bank has earmarked 9 per cent shareholding for the Employees Share Ownership Plan, which is unique in Pakistan.

One major recent break though for Meezan Bank was the introduction of an Islamic Export Refinance Scheme by the State Bank of Pakistan. This would, for the first time in Pakistan, enable us to provide Export Refinance at concessional rates under Shariah complaint instruments.

5

SBP Team In Dubai To Meet Fund Managers: $750m Investment

KARACHI, Aug 27: **A three-member team of State Bank officials has left for Dubai to explore the possibility of investing part of its foreign exchange reserves in fixed income securities. **

Bankers close to the SBP told Dawn that the team, headed by deputy governor Tawfiq A. Husain, would meet senior fund managers there. Foreign exchange adviser of the State Bank Zafar M. Shaikh and executive director Farhat Saeed are the other two members of the team. The team will return to Pakistan by the end of this week.

The fund managers would brief the delegation on how gainfully Pakistan can invest in the world market some $750 million out of its $7.3 billion liquid forex reserves.

The board of directors of State Bank has already allowed the management to invest this amount initially in the US-dollar denominated fixed income government bonds. The SBP officials are expected to receive elaborate briefings by the fund managers in Dubai on the number and nature of investment options available to Pakistan.

After building the foreign exchange reserves from $3.2 billion a year ago to $7.3 billion Pakistan wants to invest part of it in fully secured fixed income securities as part of better reserve management. In fiscal year July-June 200-01 the central bank had booked a huge Rs49 billion foreign exchange loss for a host of reasons, including a somewhat orthodox reserve management.

Bankers close to the SBP say the fund managers in Dubai are likely to brief the central bankers about **(i) the countries whose fixed income securities can be chosen for investment (ii) the nature of various debt and equity bonds in which Pakistan can put its money and (iii) the yield curve of these securities. **

On top of all the fund managers will also identify the safest modes of investment with instant accessibility as the SBP has decided to invest $750 million only in such bonds that guarantee premature withdrawals. That makes sense in case of Pakistan whose forex reserves build-up is seen by many as one time-reward for its support to the US in its **“war against terrorism in Afghanistan.” **

Bankers close to the SBP say the team would be discussing with the fund managers the possibility of making investment in such fixed income securities that can offer repo facility up to 95 per cent.

This means that the SBP will be able to use these securities for raising foreign currency loans worth up to 95 per cent of their value - when Pakistan needs foreign exchange.

6

Turkmen-Pakistan Gas Pipeline Can Begin By 2004

KABUL: Construction of a natural gas pipeline from Turkmenistan through Afghanistan and on to Pakistan could begin as early as mid-2004, officials said on Monday.

Senior officials from the three countries held a day of talks here during which they discussed details of the $4 billion project scuppered repeatedly in the past by war and occupation in Afghanistan.

“Improvements in Afghanistan have made conditions more favourable for it (the pipeline),” said Juma Mohammad Mohammadi, Afghanistan’s minister of mines and industries. When asked how Afghanistan would secure the pipeline from members of the Taliban and al-Qaeda network believed to be still active, he replied: “We are very hopeful about the future.”

H E Sethapathy Chander of the Asian Development Bank, which is financing a pipeline feasibility study, said financing for the project could be in place by mid-2004, a year after the study is complete. “We expect that the financial clause will take about a year after June of next year and the construction starting shortly thereafter,” he told a news briefing.

Usman Aminuddin, Pakistan’s minister for petroleum, called the plan a “mega-project” of the 21st century and voiced confidence that investors would not be hard to come by. He added that the pipeline could continue through Pakistan to another major energy consuming market in India.

The plan is to run a 1,460-km pipeline south from Turkmenistan’s vast Daulatabad-Donmez gas fields into western Afghanistan and then east to Pakistan and possibly beyond. The pipeline will supply 15 billion cubic meters of gas to Pakistan annually. A steering committee of Pakistan, Afghanistan and Turkmenistan would review the project and take decisions to materialise it in the near future.

7

Expansion of Iran-Pakistan Ties To Benefit All Muslims: Aref

Tehran, May 19, IRNA – First Vice-President Mohammad Reza Aref here on Saturday evening underlined his firm belief that expansion of
Tehran-Islamabad cooperation would be in the interest of maintaining stability in the region as well in the entire world of Islam.

His remarks were heard during a meeting with the Pakistani Minister for Finance and Economic Affairs Shaukat Aziz, who is currently heading a delegation attending a two-day tri-partite conference on Afghan reconstruction here that includes host country.

Iran as well as Afghanistan. The conference began on Saturday.

Speaking of Iran-Pakistan cooperation at the Economic Cooperation Organization (ECO), Aref expressed the hope that the two countries will continue their friendly cooperation on regional issues,
particularly on the issue of Afghanistan.

Referring briefly to Iran-Pakistan political and diplomatic cooperation, Aziz expressed his regret that although the states enjoy the economic potentials for greater collaboration, their economic cooperation does not come up to the desired level.

The Pakistani minister called for an expansion of current bilateral ties,
and for both countries to raise the level of their cooperation on Afghan reconstruction and development.

In other developments, the Iranian first vice-president met and
conferred with the visiting Afghan Minister of Higher Education
Sharif Fayez on Saturday evening.

Expressing his satisfaction with the current pace of reconstruction efforts for war-torn Afghanistan, Aref voiced Iran’s readiness to train Afghan manpower needed to speed up the reconstruction process.

Welcoming the return of peace and stability in neighboring Afghanistan, he said the Islamic Republic is ready to take part in ongoing reconstruction operations for that country.

He also called for expansion of Tehran-Kabul scientific and educational cooperation. “Iran is ready to provide Afghan universities with skilled teaching staff and to set up short-term training courses in those universities”,Aref told the Afghan minister."

Briefing Aref on the status quo in his country, Fayez praised the great efforts exerted by the Islamic Republic of Iran to
reestablish peace and security in that war-torn country.

The Afghan minister, who is here to attend a conference on Afghan econstruction, further called for utilization of Iran’s experiences in Afghanistan’s science and educational fields.

8

Pakistan Steps In As Russia Backs Away From Nuclear Cooperation With Iran

Iranian reaction to the dwindling prospects of nuclear cooperation with Russia was quick and decisive. A high-level Iranian delegation will be arriving in Pakistan this week to discuss defense cooperation between the two Islamic countries. Headed by Iran’s deputy defense minister, the Iranian officials will specifically discuss with their Pakistani counterparts the unique defense capabilities of both the countries, in order to see how they could benefit from their respective expertise in the area.

**Both Iran and Pakistan have large indigenous defense industries, producing guns, armored vehicles and aircraft, among other defense products. However, Iran’s main interest will obviously center on Pakistani nuclear technology. Pakistan is the only Islamic nuclear power, and has an arsenal of atomic bombs, which it has already publicly tested despite severe international pressure. The technical knowledge of Pakistan’s atom scientists could greatly assist Iran in its quest for its own nuclear weapons. **

While relations between Pakistan and Iran have been very strained in the past years, they have been steadily improving in recent months. The visit by the Iranian delegation is an important milestone in this process.

9

Azerbaijan & Pakistan Sign Cooperation Protocol

Baku, April 15, 2002. (CNA). Today, the Azerbaijani Defence Minister Safar Abiyev met Pakistani Defence Secretary Lt-Gen Hamid Nawaz Khan and discussed bilateral cooperation in military sphere, methods in the joint struggle against terrorism and other issues. According to the Azeri Minister as a result of meetings between Azerbaijani President Heydar Aliyev and Pakistani President Pervez Musharraf five Azerbaijani servicemen were now being educated and trained in Pakistan’s higher military schools. Other 19 Azerbaijani officers will be sent to Pakistan. Moreover, a draft interstate agreement on cooperation between the Azerbaijani and Pakistani armed forces was being worked out.

In turn, Nawaz Khan said that Islamabad constantly supported Baku on the Nagornyy Karabakh issue. In his turn the Azeri official expressed Azerbaijan’s support to Pakistan in Kashmir’s problem.

A protocol on bilateral cooperation in the defence and military spheres between the Azerbaijani and Pakistani defence ministries was signed as a result of the talks.

10

Azerbaijan, Pakistan Form Business Council

ISLAMABAD, Sept 3: Pakistan and Azerbaijan on Tuesday signed a protocol to enhance and strengthen the existing trade and economic relations between the two countries after comprehensive deliberations at the 2nd session of Joint Ministerial Commission.

Deputy Prime Minister of Azerbaijan, Yagub Eyyubov and Minister for Privatization, Altaf M. Saleem signed the protocol on behalf of their respective countries at a signing ceremony here at Privatization Commission.

Secretary Economic Affairs Division, Dr. Waqar Masood was also present at the signing ceremony.

According to the protocol, the two countries will cooperate and exchange information and expertise in various fields of economy including engineering sector, science and technology, finance, trade, etc.

A joint Business Council will also be established to enhance business relations between the two countries, besides initiating air links.

Later talking to newsmen, Minister for Privatization, Altaf M. Saleem, who led the Pakistan side, said the two countries enjoy long-time traditional relations and it was realized at the JMC to further boost economic ties.

“We have also offered Azerbaijan the expertise from Pakistan in finance and banking,” he added.

The Minister said it was also decided to increase and facilitate the frequent exchange of business delegations between the two countries.

Deputy Prime Minister of Azerbaijan, Yagub Eyyubov while sharing the views of Altaf M. Saleem said the signing of protocol was an expression of desire from the hearts of the people of two countries to strengthen the existing relations.

He said the protocol will boost the economic cooperation between the two countries, besides bringing the people of two nations more closer.

The Business Council would comprise leading Pakistan and Azerbaijani businessmen to enhance the business relations between the two friendly countries.-APP

Our Reporter adds: Pakistan and Azerbaijan, under the umbrella of Economic Cooperation Organization (ECO), can boost their economic and trade relations in view of the potential existing among the ECO countries to compliment each other’s economy and share experiences among themselves.

This was stated in a joint statement issued by Yagub Eyyubov, Deputy Prime Minister of Azerbaijan who is currently visiting Pakistan at the head of seven-member delegation and Finance Minister, Shaukat Aziz in a meeting on Tuesday afternoon.

**They agreed that through Joint Economic Commission, which provides an institutionalized arrangement, the two countries could cooperate with each other in trade, aviation links, customs agreement, banks, convening of single-country exhibition to promote trade and investment and joint ventures in livestock, dairy, textiles, agriculture, information technology and science and technology. **

Pakistan offered assistance in financial sector, particularly banking, development of textiles and micro-financing. Similarly, Pakistan could benefit from Azerbaijan’s experience in energy and development of petroleum sector.

Pakistan, it was noted, had also agreed to establish a subsidiary branch of National Bank of Pakistan in Baku.

The two sides reviewed bilateral relations and expressed satisfaction over shared perception on a number of regional and international issues.

Pakistan Finance Minister said that the government has introduced a number of structural and administrative reforms in the financial, petroleum, insurance, banking, agriculture and other sectors.

**These reforms have resulted in accumulating grossforeign exchange reserves of over $7.5 billion, inflation has been contained to 3.5 per cent and GDP growth is expected to be around 4.5 per cent. **

11

Saudi Oger, Orascom To Bid For PTCL

ISLAMABAD: Saudi Oger and Orascom groups have submitted Statement of Qualification (SoQ) for Pakistan Telecommunication Company Limited (PTCL), said Altaf Saleem, Minister for Privatisation.

In a briefing here on Thursday, he said 16-26 percent shares of the PTCL would be divested along with management transfer to the successful bidder. The Minister also talked in detail about the overall privatisation effort.

Altaf Saleem said the government would continue its efforts to bring the SOEs to the point of sale by October 2002. The new elected government would sell the left over entities, he said. In case of PTCL, he said, the government had not determined the estimated return out of the PTCL transactions. He said its earning forecasts change so rapidly.

In the mid-90s, the PTCL privatisation was expected to fetch around $6 billion, enough to retire one-third of the external debt at that time. However, the authorities found some unfounded strategic and security reasons to postpone this process. It would be the most daunting task even to fetch one billion dollar now out of the PTCL at present market outlook.

The PTCL monopoly over the fixed line network would be over by end of 2002, leaving the market open for the private sector players. This would bring down the domestic tariff structures substantially, but would create pressures for the national company. Earlier, it is sold, better it would be for the country. Saudi Oger Group (OJ Group), owned by Saad Hariri, son of Lebanese President Rafik Hariri, and Orascom Group (Mobilink) is said to be serious buyers for the PTCL. However, the third interested party, Turkcell, had not submitted SoQ for acquiring stakes in the company. The government had identified a list of Public Sector Enterprises (PSEs) that would be off-load by October 2002, with an estimated value of $2 billion, excluding PTCL. These include: United Bank Limited (51 percent), Habib Bank Limited (26 percent), Pakistan State Oil, Oil and Gas Development Corporation Limited (OGDCL), and several other small entities. The estimated value of OGDCL has been placed at one billion dollar.

The privatisation of PPL, also expected to fetch one billion dollar, has been delayed subjected the submission of the technical report.

Altaf Saleem said that the **privatisation undertaken by the present government had yielded $375 million so far, including $188 million sale proceeds of the seven oil fields. However, in case of UBL, he said, final decision would be taken by Wednesday next upon receipt of the evaluation report from the State Bank of Pakistan. Muslim Commercial Bank had made the highest bid at Rs 8.5 billion for the 51 percent stakes in the United Bank Limited. The government had separated UBL’s loan defaults incurred in the UAE operation amounting to Rs 3.5 billion (principal value) that would be taken care by the federal government. **

In addition, the Central Bank had injected Rs 7.9 billion in the Bank to recapitalise the Bank in accordance with the standard capital adequacy ratio. Overall, the government had injected Rs 30 billion in the Bank over the last 10 years to clear its losses of Rs 25 billion. At present asset value, UBL’s per share rate comes to Rs 9 per share. The bid value of MCB for 51 percent shares amounts to Rs 32.18 per share. However, the future outlook of the Bank and earning per share is not known. The present market share of UBL is 9 percent against 10 percent of MCB. Based on the Central Bank report, the Minister said, the Commission would ask all the three bidders to enhance their bid value for UBL.

12

Pak-Arab, Pak-Saudi Fertilizers Earn Rs 753 Million Profit

ISLAMABAD, June 30 (PNS): State-owned Pak-Arab and Pak-Saudi fertilizer companies earned 753.85 million rupees net profit in this financial year.

Pak-Arab Fertilizer Company attracted 445.64 million rupees net profit in July to April this fiscal while Pak-Saudi Fertilizer Company has earned 305.22 million rupees net profit.

Total sales of the Pak-Arab Company amounted to 3.781 billion rupees while Pak-Saudi Company sale stood at 3.011 billion rupees.

Officials said the government has improved the functioning of the fertilizer companies with the aim to make them viable for privatization.

Pak-Saudi Fertilizer Company has been privatized recently and Pak-Arab Fertilizer Company will also be privatized soon.

13

Another Foreign Bank Packs Up

KARACHI: In a transaction between two Bangladesh-based banks, the International Finance Investment and Commerce Bank (IFIC) will soon acquire Rupali Bank’s Pakistan operations, Mohammed Abdullah, general manager of IFIC, confirmed to Daily Times on Friday.

“Yes, the Bangladesh government has instructed the board of IFIC to take over the assets and liabilities of Rupali,” Mr Abdullah said. **“But it is at very initial stages.” He declined to say how much the transaction would be worth. **

Banking sources said the transaction is likely to be finalised by August.
Rupali Bank is wholly owned by the government of Bangladesh, while IFIC is 40 percent state-owned. The acquisition has not yet been approved by the State Bank of Pakistan (SBP).Rupali’s top management confirmed that the bank’s operations in Pakistan were under review, given new regulatory requirements from the SBP which require banks to maintain a minimum capital of Rs 1 billion.

“The decision is yet to be finalised by the ministry of finance of the government of Bangladesh, but it is under very active consideration,” Mohammed Hasanat, country manager of Rupali Bank, told Daily Times. **“As far as I know, Rupali may be merged with another bank, but I cannot confirm the name of any specific bank.” **Mr Hasanat also said that if Rupali’s operations were not acquired by another bank, it could then function as a non-scheduled bank, as per SBP regulations since it does not meet capital requirements.

Banking sources said the decision was taken in order to allow the merged entity to meet SBP minimum capital requirements, since neither has sufficient capital at present. Talks are said to have begun on the transactions about six months ago and once the acquisition is complete, sources said the merged entity will immediately open an additional two branches in Pakistan.Currently, Rupali operates a single branch in Karachi, while IFIC runs one branch in Karachi and one in Lahore. The banks focus on commercial banking and trade finance activities.

IFIC had Rs 1.36 billion in deposits and Rs 1.21 billion in advances on its balance sheet as of December 31, 2001. The bank’s pre-tax profits dipped about 3% last year to Rs 60.67 million from Rs 62.49 million in 2000. The bank’s net assets stood at Rs 388 million.

Rupali Bank, meanwhile, is yet to publish its 2001 balance sheet, although all other foreign banks have done so. According to its 2000 accounts, Rupali had total deposits of Rs 389.48 million and advances of Rs 110.85 million. The bank logged a pre-tax profit of Rs 39.28 million, up 43% from Rs 27.48 million in 1999. Rupali’s net assets stood at Rs 68.48 million on December 31, 2000.

In recent months, Societe Generale sold its Pakistan operations to Meezan Bank, Emirates International was bought by Union Bank for $18 million and Doha Bank is also reportedly wrapping up its Pakistan operations

14

Morocco, Pakistan Sign Cooperation Agreements

Morocco and Pakistan signed in Rabat on Wednesday a trade and economic cooperation while the two countries’ export promotion bodies concluded a memorandum of understanding.

The two countries were signed in the presence of Pakistani minister of trade, industry and production minister Abdul Razak Dawood, who started on Wednesday a visit to Morocco at the head of a delegation of 15 businessmen.

Morocco’s minister of trade, industry and mining, Mustapha Mansouri, who was also present at the signing ceremony deplored the low level of trade exchanges which stood at 583.3 million DH (US$ 50.6 million) in 2001.

The Pakistani official expressed his country’s readiness to open its markets for Moroccan products and to make Morocco benefit from its expertise in the textile sector.

The minister met on the same day Moroccan prime minister, Abderrahmane Youssoufi, over means to consolidating bilateral cooperation and increasing trade.

In another meeting with the chairman of the Moroccan federation of chambers of commerce, industry and services, Pakistani businessmen expressed will to invest in the Moroccan market.

Abdul Razak Dawood also conferred with minister of foreign affairs and cooperation, Mohamed Benaissa, on various aspects of bilateral cooperation.

15

Pakistan To Export 200,000 Tonnes of Sugar To Afghanistan

KARACHI: Pakistan will export 200,000 tonnes of surplus sugar to Afghanistan on a self-finance basis within the next five months, sources in the sugar industry informed Daily Times Thursday.

A number of Afghan importers are present in the country to lift the surplus sugar, the sources said, but the deals have not been finalised since local manufacturers are waiting for the federal government’s rebate policy.

However, some sugar industries in the Punjab have already finalised their deals to export their sugar to Afghanistan, the sources confirmed.
Local exporters are expected to send 100,000 tonnes of sugar in the next two months from Punjab to Afghanistan. The remaining 100,000 tonnes of sugar shall be exported after the confirmation of rebate payments to exporters, the sources said.

The federal government had agreed to proposals presented by the sugar industries and has permitted the export of surplus sugar to Afghanistan. The government is ready to give Rs 6 per kilogram of sugar exported to Afghanistan as export rebate on the condition that manufacturers pay back 10 percent to 15 percent of the rebate to the government during the sugarcane crushing season.

The sources said the demand for sugar has come from Central Asian countries and the border countries of Afghanistan, Tajikistan and, Turkmenistan. Most Afghan importers shall sell the sugar they acquire from Pakistan to these countries since sugar prices in Central Asian countries are much higher than prices in Pakistan and India.

During the last crushing season, the local sugar industry accumulated a surplus stock of 200,000 tonnes of sugar, which had caused a liquidity crisis.

Other sources confirmed that Indian sugar is being transported to Afghanistan through Pakistan, however, customs authorities in Karachi denied giving any information on this Afghan Transit trade.
Some exporters based in Sindh and Punjab have already exported 20,000 tonnes of sugar on a self-finance basis to Afghanistan.

Zaka Ashraf, chairman, Pakistan Sugar Mills Association (PSMA), confirmed the export orders from Afghanistan’s importers and demanded the government give a subsidy to the sugar industry.

The government is considering a 30 percent regulatory duty on the import of sugar, Ashraf said. This would be in addition to a 25 percent customs duty importers are already paying the government. He said after the implementation of this decision, there would be a 55 percent duty on the import of sugar in Pakistan

16

EPB To Explore Trade In Afghanistan

KARACHI: Tariq Ikram, Minister for State and Chairman Export Promotion Bureau (EPB) will explore new trade-ways during his visit to Afghanistan scheduled from July 21 to July 25, Dr Junaid Khan, director for Afghanistan, EPB told Daily Times Thursday.

Dr Khan said Mr Ikram would also meet Afghan government officials and representatives of various trade bodies during his visit. This is the first visit of its kind by the EPB chairman, who shall discuss new business options in Afghanistan and work towards extending trade relations between the two countries.

This visit has been arranged by the EPB on the directive of the federal government. However, the representatives of local exporting units are also included as part of the visit, the details of which shall be finalised in the next two days, Dr Khan said.

The director said the government had already set up two separate committees for the exploration of new trade with Afghanistan. These committees are working in tandem with Afghan traders through the Pakistan embassy in Afghanistan, Dr Khan added.

The delegation is planning on examining consumption of Pakistan’s goods in different Afghan cities and the problems the Pakistan business community faces in exporting goods.

17

Pakistan, Syria Sign MoU on Scientific Cooperation

**ISLAMABAD, July 23 (Xinhuanet) – Pakistan and Syria signed an MoUin Damascus for cooperation in biotechnology, pharmacological chemistry, distance learning programs and marine sciences, the Ministry of Science and Technology declared Tuesday. **

Pakistani Minister for Science and Technology Prof. Atta-ur-Rahman and Syrian Minister for High Education signed the MoU on behalf of their respective governments.

It has been decided that Pakistan and Syria will work on joint projects in the above mentioned fields. Two pharmacists and two professionals of Syrian virtual university will visit Pakistan subsequently. Joint collaboration projects will be identified during these visits.

It has also been agreed that Pakistan and Syria will set up a one-million-dollar revolving fund with equal contribution on the pattern of Pak-China and Pak-Kazakhstan Funds. The fund will be used for joint projects in the above mentioned fields.

18

Syria Backs Muslim S&T Research Fund

ISLAMABAD, July 23: Science and Technology Minister Prof Attaur Rahman on Monday conveyed to Syrian President Bashar Al Asad in Damascus a message of President Gen Pervez Musharraf about setting up of a fund for scientific and technological research in the Muslim world.

**The Syrian president expressed his support for the proposal and appreciated the initiatives taken by Pakistan for scientific and technological development of the Muslim world, ** according to a press release issued here on Tuesday.

Prof Rahman said only science and technology could provide a basis for sustainable economic development.

MOU SIGNED: Pakistan and Syria on Monday signed a memorandum of understanding in Damascus for cooperation in biotechnology, pharmaceutical chemistry, distance learning programmes and marine sciences, the press release added.

Prof Rahman and Syrian higher education minister signed the MoU.

It was decided that the countries would work on joint projects in the fields.

During the next two weeks, Pakistani scientists will visit Syria while two pharmacists and two professionals of Syrian virtual university will visit Pakistan subsequently to identify joint projects.

**The two countries agreed to set up a $1 million revolving fund for joint projects in the fields with equal contribution on the pattern of Pakistan-China and Pakistan-Kazakhstan funds. **

Prof Rahman also visited virtual university of Syria.

19

Bangladesh-Pakistan Sign Two Agreements

DHAKA, July 30 (Xinhuanet) – Bangladesh and Pakistan signed two agreements Tuesday to further enhance and strengthen bilateral cooperation and friendly cooperative relations in various fields between the two countries.

The protocol of bilateral consultation between the foreign ministries of the two countries is aimed at increasing bilateral cooperation in mutually agreed fields and continuing cooperation in order to promote international peace.

**The agreement on cultural exchange program between them for theyear 2003-3007 envisages enhancement of cooperation in the fields of culture, tourism, youth, sports, education, scholarship and archeology. **

Under the protocol, the consultation will take place at the foreign secretary level between the two countries to discuss the entire gamut of bilateral relations.

Under the agreement, Pakistan has offered Bangladesh training programs for the concerned persons in the field of archeology to help preserve its archaeological heritage. Besides this, 10 scholarships will also be offered from each side of the two countries.

Bangladesh Foreign Minister M. Morshed Khan and State Minister of Foreign Affairs of Pakistan Inam Ul Haque signed the agreement and protocol on behalf of their respective governments.

Prime Minister Begum Khaleda Zia and visiting Pakistan President Pervez Musharraf witnessed the signing ceremony of the documents immediately after the end of the official talks between them.

The Pakistan president arrived here Monday for a three-day official visit.

20

Pakistani Wheat Makes Inroads In Southeast Asia

SINGAPORE, Aug 1: Pakistan, which has made inroads in the Southeast Asian wheat market by striking sales to Vietnam, has found another customer in Malaysia and is hopeful of a few sales to Indonesia, traders said on Thursday.

As regional grain traders await the outcome of Pakistan’s latest export tender for 100,000 tons, they expressed the hope for more sales from the South Asian origin to Southeast Asia, although it faces a big hurdle - aggressive Indian sales.

“Pakistani wheat has gone into Malaysia and I have not heard them complaining about anything,” said a Singapore-based regional grains trader, dealing in South Asian-origin wheat.

Earlier this year, Pakistan made its first wheat sales in the Southeast Asian region in many years with deals to Vietnam, adding to the already stiff competition between India and China.

Regional traders said Vietnam, after finding Pakistani wheat of acceptable quality, had booked more contracts recently and a few more were being negotiated.

“Vietnam has bought some more Pakistani wheat - about 20,000 tons - in the past few days. In addition to that, a lot of containerised wheat is also going to Vietnam from Pakistan,” said another Singapore-based grains trader.

Islamabad deregulated its wheat exports last year to allow private participation in trade. Pakistan is hoping to export about 1.2 million tons of wheat in 2002 compared with just 50,000 tons last year.

Pakistani wheat has found a significant market in the Middle East and some cargoes have even gone to Europe, but they have been finding it difficult to compete on price with India and China in the Southeast Asian region.

“Indonesia is seriously looking at Pakistani wheat and I am confident of more sales to Malaysia,” said one trader. **“But the problem in the Malaysian market is that traders there are getting attracted by low-priced Indian offers,” **said one trader.

“Also, I have given some Pakistani wheat samples to the Philippines but nothing has been worked out,” the trader said.

Traders said the landed cost of Pakistan wheat in Southeast Asia was working out to be $121-$122 a ton, while Indian wheat was offered at about $118 a ton. Chinese wheat, which used to come in at about $116 a ton, has dried up in recent weeks.

India, despite facing one of its worst droughts in the past decade, has said its wheat exports will not be affected since it has huge stocks of grains. **“But the situation is slowly changing,” **said one trader. **“We might have a shortage of wheat in this region, with the weather situation worsening. Look what is happening to the Australian crop. If this remains, there might be a supply squeeze and that would help Pakistan to pour out some more wheat at a good price.” **

Another trader said: **“What we are going to see is a rush for small shipments in this region. Apart from India, Pakistan is also well-placed to meet that kind of requirement.” **

On Thursday, the Australian Bureau of Agricultural and Resource Economics slashed its forecast for the 2002/03 wheat crop to 17.1 million tons from a June forecast of 20.5 million tons, as severe drought gripped Australian farmland. Australia produced 24 million tons wheat in 2001/2002.

State-run grain trading agency Trading Corporation of Pakistan said on Monday it had issued a tender to sell 100,000 tons of wheat from government-owned stocks. The bidding deadline is August 8 and bids would be opened on the same day.

Traders said there was more interest from suppliers to bid at this tender than there was in the past few ones.

“Suppliers strongly feel that Pakistan might not offer a lot of wheat after this tender. Maybe, they will come out with just one more tender. Therefore, buyers might rush to sign up for some cheap wheat,” said one trader.