FOLDER - PAKISTAN and Muslim World (09/2002)

Society Pakistan & World Affairs
21

Wheat Export Rises To 271,000 Tonnes

30,740 tonnes of wheat has been exported to Iraq, and 50,000 tonnes to Afghanistan. Negotiations are also under way with some other countries for further export of the surplus wheat

ISLAMABAD: Pakistan on Monday despatched 900 metric tonnes of wheat to Kabul as part of $100 million commitment it pledged at the Japan Conference to assist Afghanistan in its reconstruction and rehabilitation.

The first convoy of 18 trucks left here for the Afghan capital to deliver the wheat consignment.

As announced by the President General Pervez Musharraf, a total of 50,000 metric tonnes of wheat will be donated to Afghanistan
in instalments.

The Minister of State for Foreign Affairs Inam-ul-Haq handed over the first delivery to Afghan Charge d’ Affaires Rehmatullah Musa Ghazi here at the Foreign Office.

The minister said that 38,000 metric tonnes of wheat will be sent to Kabul, 7,000 to Kandahar and the remaining 5,000 to Jalalabad.

He said this is a gesture of goodwill from the people and government of Pakistan to their Afghan brethren.

Pakistan is one of the few countries to honour their commitment pledged during the Tokyo Conference last year.

The minister assured that Pakistan will continue to assist and take active part in the reconstruction process in Afghanistan and in meeting its humanitarian requirements.

The Afghan Charde d’Affaires in his remarks recalled the cordial relations between the two countries and stated that during the new era, Pakistan has stepped forward to assist Afghanistan in its rehabilitation. He thanked the government and people of Pakistan for this good-will gesture.

According to the officials of the foreign ministry, starting from today, the entire consignment of 50,000 metric tonnes wheat will be delivered on daily-basis.

Meanwhile, wheat export has gained momentum with the sale of 271,000 tonnes since the start of the current harvesting season.

The official source said on Monday that about 163,000 tonnes of wheat has so far been lifted whereas arrangements are under way for the delivery of the remaining quantity.

Besides, private sector is also actively taking part in the wheat exports by exporting about 33,000 tonnes, while the Pakistan Trading Corporation (TCP) has exported 165,000 tonnes of wheat.

According to the official sources, wheat stocks have risen to 7.28 million tonnes following the procurement of 4.04 million tonnes of wheat.

**Elaborating the details of exports, the source added that 30,740 tonnes of wheat has been exported to Iraq, while 50,000 tonnes to Afghanistan. **

Negotiations are also under way with some other countries for further export of the surplus wheat. —APP

22

Defence Accord Signed With Azerbaijan

KARACHI, Sept 17: Pakistan and Azerbaijan on Tuesday signed an agreement to enhance defence cooperation between the two countries, on the second day of the defence exhibition **‘IDEAS-2002’. **

Col Gen Safar Abijev, defence minister of the Republic of Azerbaijan and Defence Secretary Hamid Nawaz Khan signed the agreement on behalf of their respective governments.

According to the agreement, the two countries would promote military training, exchange of personnel, military exercises, exchange of information, use of facilities and cooperation in defence, science and industry.

During his earlier visit in 2001, Mr Abijev had visited a number of defence production units.

At the conclusion of his visit, a joint statement was issued which paved the way for initiating institutionalized defence cooperation through developing partnership between the two countries.

23

UAE Invests $16 Million

ISLAMABAD, May 11 (PNS): United Arab Emirates has made 16 million dollars foreign direct investment in Pakistan in July-March this fiscal.

UAE invested 9 million dollars in electronics, 1.77 million in textiles, 1.74 million in financial business, 1.31 million in construction, 0.53 million in trade and 1.7 million in other sectors.

**United Arab Emirates has emerged as the third major investor in Pakistan. **

Top two investors countries are the United States and United Kingdom. United States has made 164 million dollars foreign direct investment in Pakistan while United Kingdom made 22.5 million dollars FDI in nine months of this financial year

24

Pak To Help In Industrialisation of Bangladesh

DHAKA, Jan 30 (PNS): Federal Minister for Trade and Industry Abdul Razak has said that Pakistan will help with the industrialisation of Bangladesh, including in the textile and fertiliser sectors of the former East Pakistan.

“We have restructured a lot in those sectors to become globally competitive,” said Dawood, who is leading a 29-member trade team here.

“Pakistan is ready to co-operate at any length to strengthen bilateral trade and investment relations to develop economies of both the countries,” Dawood said after talks with Bangladesh’s Industries Minister M K Anwar.

Anwar said Bangladesh wanted to develop its textiles sector and also needed more fertiliser to meet local demand. The textile sector supports the country’s major foreign exchange earner, readymade garments.

During talks, Bangladesh also called for a reduction in the trade gap between the two countries, officials said. **Pakistani exports to Bangladesh in the past fiscal year were worth $90.53 million against imports of $30.2 million. **

25

Saudi Arab Lifts Ban On Meat Import From Pak

**ISLAMABAD, May 24 (PNS): Saudi Arab has lifted ban on the import of meat and its products from Pakistan. **

Federal Food and Agriculture Minister Khair Mohammad Junejo told PNS that Saudi Arabia has indicated the removal of ban in writing to his Ministry this week.

He said that next week Pakistan and Saudi Arabia will sign a formal agreement, leading to the removal of ban on the import of meat and its products from here.

Khair Mohammad Junejo said Saudi Arab has allowed three Pakistani slaughterhouses to export meat and its products to Saudi Arabia.

A team of Saudi experts visited Pakistan last month and inspected the standard being maintained by the slaughterhouses.

However, seeing a strict criteria being adopted by the slaughterhouses the Saudi authorities have permitted meat and its products imports from Pakistan.

A few months ago Saudi Arab had slapped ban on the import of meat and its products from Pakistan amid reports of head and mouth disease in livestock that proved wrong.

United Arab Emirates had already lifted ban on livestock, its products and meat import from Pakistan early this month.

26

Pak Exporting 0.5 Million Ton Wheat To Iraq: Junejo

ISLAMABAD, May 24 (PNS): Currently Pakistan is exporting 0.5 million ton wheat to Iraq, and first shipment in this regard has been dispatched in this week.

This was said by Khair Mohammad Junejo, Federal Minister for Food, Agriculture and Livestock, in an interview after meeting Iraqi Ambassador, here Thursday.

“Pakistan is exporting wheat” said Junejo, “to six countries in Africa, and recently we had an agreement with Switzerland for export of 2500 thousand tons wheat. All the countries are satisfied with the high quality of our wheat”. The Federal Minister also informed the Iraqi Ambassador about Pakistani Rice and Fruits.

Speaking on the occasion, the Iraqi Ambassador A. K. Rawi said that Iraqi Government was interested in importing Pakistani Rice and Fruits. We are analyzing your offer and final decision in this regard will be taken

27

Malaysian Telecom Companies For Business In Pak

ISLAMABAD, May 28 (PNS): Malaysian Deputy Minister of Post Energy and Telecommunication Datuk Tan Chai HO Monday said that the incentives given by Pakistan government espacially in the field of Information Technology have greatly encouraged the private investors.

He said this in his meeting with Federal Minister for Science and Technology Prof. Atta-ur- Rahman here.

The Malaysian Deputy Minister stayed with Prof. Atta for sometimes and discussed matters of mutual interest.

On the occasion Dato Tangko Dr. Rethwan Chairman Dancom Telecommunication, Malaysia and Datuk Liu Thim, Director also accompanied the Malaysian Minister.

They briefed the Minister about Dancom Telecommunication; Malaysia plans to expand its business in Pakistan.

Prof. Atta briefed the Malaysian Minister about the initiatives taken by the government for promotion of IT and Telecom sector particularly Telecom infrastructure enhancement, human resource development.

28

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Pak-Libya Co To Raise Rs500m Through TFCs

KARACHI: The Pak-Libya Holding Company is raising Rs500 million through an underwritten public listed Term Finance Certificates (TFCs) issue that will be jointly advised and arranged by the National Bank of Pakistan and the Pak-Oman Investment Company, a press release of the Company said on Thursday.

An agreement to the effect was signed by Chairman of the Pak-Libya Holding Company, Nagmeddin H. Mokhtar with Tajammal H. Bokharee, Head of Corporate Banking North, National Bank of Pakistan, and Zafar Iqbal, Managing Director of the Pak-Oman Investment Company. The signing ceremony was attended by Khalid Sherwani (Managing Director Pak-Libya), Ramadan Haggiagi (Deputy Managing Director) and senior executives of the three institutions.

Pak-Libya Holding Co is a joint venture between the Governments of Pakistan and Libya with a short-term credit rating of A1+ and a long-term rating of AA. This five-year TFC issue is expected to receive a good response from the market. It will be the first corporate debt issue by a joint venture investment company in Pakistan.

Additionally, it will be the first private limited company to raise funds through a public listed instrument. The NBP and the Pak-Oman Investment Company are jointly working on several corporate bond transactions in Pakistan.

29

Exports To Dubai Up 22%

ISLAMABAD, June 07 (PNS): Pakistan’s exports to Dubai have marked 22 percent increase in this financial year.

**Pakistan has exported 387 million dollars various items to Dubai in July to January this fiscal. In the same period a year ago, the country exported 318 million dollars various products to Dubai.

In dollars, exports to Dubai 69 million dollars. **

Pakistan exports yarn, fabrics, bedwear, knitwear, rice, sports, surgical, leather and carpets to Dubai in bulk.

Officials said that ** Dubai is emerging as a second major buyer of Pakistani products. United States is the number one buyer of Pakistani products.**

30

Exports To Kabul Rise

PESHAWAR, June 6: Exports to Afghanistan have registered growth during the current financial year in the wake of recently undertaken rehabilitation and reconstruction activities in the war-torn country.

Addressing to the members of Sarhad Chamber of Commerce and Industry (SCCI) here on Wednesday, minister of state and chairman Export Promotion Bureau (EPB), Tariq Ikram said that $91 million exports to Afghanistan during the current financial year had recorded encouraging improvement in comparison with the last financial year.

However, while addressing a function at the Gems and Gemological Institute here on Wednesday, Tariq Ikram said the country was not likely to achieve the export target set for the current financial year due to the recessionary trends in the wake of the post-Sept 11 situation. “Under the current circumstances, it would be more than enough, if the country manages to touch the figure of exports recorded during the last financial year,” said Tariq Ikram.

The EPB chairman told SCCI members that the country would experience much more improvement in its exports to Afghanistan in the time to come.

“Pakistan stands greater chances in Afghanistan,” said the minister while urging the trade and business community of NWFP to get prepared for meeting the challenge arising out of greater business opportunities in the reconstruction and rehabilitation of Afghanistan.

He said that a display centre would be established at Peshawar where items consumed in Afghanistan would be displayed to facilitate the local traders.

Similarly, the EPB was also in the process of establishing a warehouse at Torkham, on the Pakistan-Afghanistan border, to facilitate importers from Afghanistan. At the warehouse, he added, items and construction material required in Afghanistan for reconstruction and rehabilitation purposes would be made available.

He said Islamabad’s move of lifting restrictions on trade through land route from NWFP to Afghanistan and onward to Central Asian Republics also brought with it greater opportunities for the NWFP-based trade and business circles to capture new markets.

However, Tariq Ikram said that apart from creating opportunities for genuine traders and businessmen the government was also cognizant of the fact that facilities being extended under the Afghan Transit Trade (ATT) were being misused. “But this could not be allowed,” said the minister while disclosing that the government was introducing a comprehensive and fool proof system to avoid the misuse of ATT by applying greater checks and balances.

Goods meant for Afghanistan, said the minister of state, would carry the inscribed words of **“only for Afghanistan”. **

31

Malaysia To Import Livestock

KARACHI, June 6: ** Malaysia will import $0.3 million livestock from Pakistan on monthly basis. The order was obtained by a trade delegation of Pakistani meat exporters during a recent visit to Malaysia. **

The visit was arranged by the Export Promotion Bureau, says an EBP press release issued here on Thursday.

The exporters were confident of exporting $25 million meat to the country in the very first year. Malaysia’s total annual meat imports stand at $220 million.

The delegation had meetings with the representatives of Associated Chinese Chamber of Commerce and Industry, Malay Chamber of Commerce and Industry, Malay Business and Industrialists Association (Penang Chapter) and other local associations. The delegation also met the officials of Department of veterinary Services, Ministry of Agriculture and food and representatives of Penang state authority.

Malaysia is keen on importing cow meat on regularly basis. The authorities were interested in visiting Pakistani abattoirs.

32

Bangladesh Keen To Expand Trade With Pakistan

Dhaka: A high level delegation of Pakistan traders, led by President Federation of Pakistan Chambers of Commerce and Industry Iftikhar Ali Malik, on Monday, held first round of talks with the Bangladesh traders to promote trade between the two countries.

President Bangladesh Chambers of Commerce and Industry expressed his earnest desire on behalf of Bangladesh traders to enhance bilateral relations particularly in the field of trade. Mr Malik, speaking on this occasion, said that main purpose of the visit of the delegation was to improve closer economic and trade relations between the two countries. **“We want to develop closer relations with all our neighbouring countries and the visit will enhance our economic and cultural ties with Bangladesh,” **he added.

The two countries, he said will develop closer cooperation in the fields of education, technology, shipping, besides trade and commerce. “There is enough scope to expand our relations with Bangladesh,” Mr Malik added. He briefed his counterpart about the prudent economic policies being pursued in Pakistan for stabilising the national economy.

He said that Bangladesh traders could import cotton, cotton yarn, sanitary products and engineering products from Pakistan.

33

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Pak-Libya Acquires Pakistan’s Platinum Commercial Bank

The Pak-Libya Holding Company signed an agreement last month to purchase Pakistan’s Platinum Commercial Bank in its entirety for 12.3 Pakistani rupees ($.20) per share, reported the State Bank of Pakistan.

The Pakistani financial institution received orders from the State Bank to achieve a minimum paid up capital of one billion rupees ($16.7 million) in order to maintain its operations. The bank failed to meet the requirements, raising only Rs 600 million by the end of June.

**Pak-Libya was established as a joint stock company in 1978 equally owned by the governments of Pakistan and Libya. The company operates as a financial institution and is engaged in various investment and financing activities in the areas of project financing, investment banking and merchant banking. **

The authorized and paid-up capital of the company in 2001 stood at $66 million and $35 million respectively. - (menareport.com)

34

Pakistan Exports Fighter-Trainer Planes To Oman

Pakistan has delivered five locally-built training aircraft to the Gulf state of Oman, completing the first export order for the military aircraft.
The value of the deal for the Super Mushshaks, which were built by the Pakistan Aeronautical Complex (PAC) at Kamra, northwest of Islamabad, was not disclosed

“Competing with European and American aircraft manufacturers and coming out with flying colours should be a matter of great pride for the Pakistan Aeronautical Complex,” Pakistan’s secretary of defence production, retired Air Marshal Zahid Anees said in a statement.

The order, which was signed in December, is Pakistan’s first major military export deal since 11 September and had to be approved by the US because the plane contains US parts.

“This is very significant for Pakistan because it has a green light from the US,” Paul Beaver from Jane’s told the BBC’s World Business Report.

**“This plane has an american engine, they are now able to export it.” **

Pakistan has previously exported arms to Saudi Arabia, Iran, the United Arab Emirates, Sri Lanka and Bangladesh.

“We hope the relations between the two air forces will be stronger now,” said Royal Oman Air Force Brigadier Saeed Bin Hamood on Pakistan television.

“We would like to see more in cooperation with support of these light trainer aircraft,” he said

Listen to Paul Beaver, BBC Correspondent

35

Pakistan Targets Arab Arms Market

Pakistan is making a major sales drive at the Middle East’s main defence exhibition, Idex, which is being held in Abu Dhabi in the United Arab Emirates.

**Analysts say Pakistan has the largest presence they have seen at a defence show outside the country itself. **

In the Arab world, the underground nuclear explosions Pakistan carried out in May 1998 were lauded as the culmination of work towards an Islamic bomb.

As a result there has been a feeling from some sectors that it should be a defence leader within the Muslim world.

Now there are growing moves towards Islamic countries buying weapons from one another rather than from other countries - a similar idea to Nato members buying arms from within their own grouping.

**Cheaper Weapons **

Saudi Arabia, the UAE and increasingly Jordan and Egypt are buying in to that idea

Pakistan’s status as a nuclear power has added to its kudos in selling other arms.

At the Idex exhibition, Pakistan is demonstrating weapons at cheaper prices than those available on other stands - a product of cheap labour.

Analysts believe the quality is still high.

In the mid-1990s Pakistani nine millimetre pistol ammunition passed the British Government’s stringent tests and was bought by London.

For sale this week are bombs, small arms, artillery and unmanned aircraft.

Currently on Pakistan’s client list are China, Bangladesh, Syria and some African countries.

The Gulf states account for 17% of world arms purchases so inroads for Pakistan into this market could make a considerable difference to its defence industry.

36

PakSaudi Fertilizer Goes To FFC

ISLAMABAD, Sept 19: The Privatization Commission on Thursday transferred the remaining 10 per cent shares (6 million) of Paksaudi Fertilizer Limited to the Consortium led by Fauji Fertilizer Company Limited at the rate of Rs135.85 per share.

The highest offer received for this transaction on March 9, 2002, according to a handout issued by the PC.

In line with the conditions of the bid documents the remaining 10 per cent NFC shares were offered to those workers of the company who did not opt for the Golden Handshake Scheme but no response was received from the workers by the due date. As per condition of the bid documents the successful bidder was bound to pick up the remaining shares at the offer price.

A ceremony to transfer these remaining 10 per cent (6 million) shares to the Consortium led by Fauji Fertilizer Company Limited on payment of Rs815.1 million was held, which was participated by the Federal Minister for Privatization Altaf M. Saleem and the representatives of FFCL, NFC and Ministry of Industry & Production A representative of FFCL presented a cheque amounting to Rs815.1 million to the secretary, Privatization Commission, Ahmad Waqar who gave cheques worth Rs122 million as Golden Handshake for 416 workers being disbursed tomorrow by the new owners.

FFCL had already deposited Rs7.3359 billion for 90 per cent (54 million) shares of the company by due date. Now the total proceeds for this transaction has come to Rs8.15 billion for 100 per cent (60 million) shares, which were fully owned by National Fertilizer (NFC).

Paksaudi Fertilizer Limited (PSFL) is a public limited company, incorporated in 1975, under the Companies Ordinance, 1984 aimed at reducing the import of fertilizers and promoting the fertilizer industry in Pakistan. The major financing for this project was provided by Saudi government, and in appreciation of this contribution, the project was named as Paksaudi Fertilizer Limited. The plant started its trial production in April 1980 and commercial production started in October 1980.

The Head Office of the company and the plant is situated 2.5 km northeast of Mirpur Mathelo, Sindh at a distance of 104 km from Sukkur. The total land area is about 566.2 acres. PSFL is one of the five urea-manufacturing plants, which are presently operating in the public sector. PSFL is a wholly owned subsidiary of National Fertilizer.

At present there are nine fertilizers producing units in Pakistan. Five of these units are state owned and are controlled by the National Fertilizer. The remaining four units are managed by the private sector. The state owned units are Hazara Phosphate Fertilizer, Lyallpur Chemical & Fertilizer, Pak Arab Fertilizer, Paksaudi Fertilizer and Pak American Fertilizer.

The units in the private sector are Engro Chemicals Pakistan Limited, Dawood Hercules Chemicals Limited, Fauji Fertilizer Company Limited and FFC-Jordan Fertilizer Company Limited

37

Tunisia For Increased Export Quota: Fertilizer

ISLAMABAD, Sept 19: **The Tunisian government has asked for enhancement of fertilizer exports quota to Pakistan aiming to bridge the trade gape between the two countries. **

The decision to this effect is likely to be taken in the forthcoming Joint Ministerial Commission (JMC) meeting later this month, a senior official in the Ministry of Commerce told Dawn on Thursday.

The JMC meeting would be attended among others by Privatization Minister Altaf Saleem and representatives from the private sector.

The meeting would discuss at length the items to be allowed at concession to enhance the trade between the two countries, said the official.

**Tunisian fertilizer exports to Pakistan amounted to $7.171 million during the financial year 2001-02, against $9.737 million during the fiscal 2000-01, showing a decrease of 26.35 per cent. **

According to the official, **fertilizer was the major and only source of exportable items of Tunisia to Pakistan and they wanted to increase the quota for the same.

And Pakistan would seek increase for market access of the textile products. **

38

Turkmenistan General Visited PAF Academy

ISLAMABAD, September 20 (PNS): Lt Gen Chariyarov Sardar Meredmuhammaedovich, Deputy Defense Minister, Chairman General Staff and Commander Air Force and Defense Forces Turkmenistan, currently in Pakistan, Thursday visited Pakistan Air Force Academy, Risalpur and Pakistan Aeronautical Complex (PAC) Kamra.

Lieutenant General Chariyarov Sardar Meredmuhammaedovich, alongwith his team arrived at Pakistan Air Force Base Minhas where he was received by PAC administration.

The distinguished guest alongwith his entourage visited different factories of PAC Kamra.

At each of the factories, the respective Managing Directors explained the different processes involved in the production of components and different parts of aircraft.

At PAF Academy Risalpur the dignitary was received by the Air Officer Commanding, PAF Academy, Air Vice Marshal Abdus Sami Toor.

The guests visited different departments of the College of Aeronautical Engineering and saw Aviation Cadets busy in their studies. They also visited Flying Instructors’ School (FIS).

The guests showed special interest in cadets’ training. Lieutenant General Chariyarov Sardar Meredmuhammaedovich also met the Turkmenistan cadets undergoing training at the PAF Academy Risalpur.

PAF Academy Risalpur has an old tradition of imparting training to brotherly country’s cadets.

39

Azerbaijan’s DPM For Enhanced Trade With Pakistan

ISLAMABAD: Azerbaijan’s Deputy Prime Minister (DPM) Yaqub Eyyubov has said there is a vast scope of cooperation between Pakistan and Azerbaijan for promotion of bilateral trade. Yaqub, who led a high-level eight-member delegation, was talking to newsmen on his arrival at Islamabad Airport on Sunday to attend Pakistan-Azerbaijan Joint Ministerial Commission meeting.

Yagub said Azerbaijan and Pakistan should enhance cooperation for promotion of trade and economic activities in the region. He said his country wants assistance and support from Pakistan for the development of tourism, agriculture, banking, transport and industry. He expressed the hope that the JMC meeting will help to enhance economic relationship and volume of trade between the two countries.

“We have also initiated a privatisation process and offering attractive incentives to the foreign investors,” he said and added: “There is scope of investment in Azerbaijan and Pakistani entrepreneurs should also take interest in setting up businesses there.” Welcoming the delegation, Federal Minister for Privatisation Altaf Saleem said the JMC meeting will further help boost economic relations between the two countries.

40

Kabul Assures Islamabad Of Help In Laying Gas Pipeline

ISLAMABAD, Aug 27: President Gen Pervez Musharraf has said Pakistan is very much interested in early laying of 1400km-long $3.2 billion gas pipeline from Turkmenistan to Pakistan via Afghanistan.

Official sources told Dawn that the visiting Afghan ministers during their meeting with the president here on Tuesday assured him that Afghan government would provide all necessary support for early laying of pipeline.

**President Musharraf said Pakistan did not have any objection if the gas pipeline was stretched to India, sources added. If the proposal is materialised, Pakistan could get $400 to $500 million annual royalty. **

Afghan Foreign Minister Abdullah Abdullah and Finance Minister Mohammad Ashraf Ghani Ahmedzai said that their country would make all possible efforts to help forge better political and economic relations between Pakistan and the Central Asian States.

They also assured that there was no opposition in their country for allowing Turkmenistan gas pipeline via Afghanistan.

Sources said **Mr Abdullah assured the president that he and his colleagues had forgotten the past and that everyone in Afghanistan was now wishing very cordial relations with Pakistan. The president also offered all kinds of economic support to Afghanistan. **

He directed Finance Minister Shaukat Aziz to expedite remaining $90 million support to Afghanistan during the next few years. Pakistan has already disbursed $10 million to Afghanistan.

The president told the visiting ministers that Pakistan’s private sector was eager to play a greater role in the reconstruction of Afghanistan, the sources added. In this regard he said joint ventures with other countries including Iran and Turkey could also be undertaken.

**Both the Afghan ministers asked for increased construction activities to be undertaken by Pakistan’s private sector in Afghanistan. **