Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi has informed the
Senate Standing Committee that the import of Liquefied Natural Gas (LNG) would save up to
$800 million per annum. Briefing the Senate Standing Committee on Petroleum and Natural
Resources here on Thursday, the minister said that the government would increase gas prices for
all the segments of economy excluding the domestic consumers especially lifeline consumers.
The committee meeting was chaired by Senator Mohammad Yousaf, Chairman Committee,
which was also attended by Secretary Petroleum, Abid Saeed, Managing Director (MD) Pakistan
State Oil (PSO) and other senior officials. The parliamentary panel snubbed the officials of
Federal Investigation Agency (FIA) for placing names of Managing Director (MD) and Deputy
Managing Director (DMD) of the country largest state-run oil marketing company - Pakistan
State Oil (PSO) - on Exit Control List (ECL) without any evidence.
Additional director FIA informed the committee that the agency had now approached the Interior
Ministry to remove the names of MD and DMD from the ECL as the investigation officer had
not found any evidence against these two top officials. He said that top nine officers of the PSO
were put on the ECL after the inquiry was initiated.
It was brought to the notice of Senate body that the name of MD PSO was placed on the ECL
without framing any charge of corruption after he took over charge as acting head of the PSO.
"We have no information about an inquiry initiated by the FIA," Shahid Khaqan Abbasi said,
adding that the FIA had harassed the top officials of the PSO without taking parent ministry into
confidence. He said that the FIA should have to inform the committee as well as the MD PSO
what crime was committed by him.
Abbasi also maintained that he had figures that gas theft had increased after the involvement of
the FIA. However, he added that the FIA officers had benefited from gas theft. "I know the FIA
who framed charges against me which were never proved even after eleven years and I was
quitted by court," Abbasi said.
Senators asked the FIA that what serious issues appeared in just six to seven weeks that the
probe was started. They expressed their resentment on un-preparedness of Additional Director
FIA and the item was withdrawn till the next meeting of the committee. The Federal Minister for
Petroleum ruled out that the Prime Minister had not rejected gas price hike and different options of passing on impact of raise were being worked out.
The minister said, "The Prime Minister wanted that the masses should not be burdened by gas
price increase. We are examining different options of passing gas prices increase on different
sectors except domestic," he added. He maintained that the ministry would take the matter of
article 158 of the constitution which gives first right of gas use to the producing province areas to
Council of Common Interest (CCI) for ''optimal use'' of gas.
"Power sector and CNG stations are operating in Sindh whereas power plants and fertilizer units
are shut down in Punjab province," he said, adding that provinces would also suffer of article
158. He said that priority order in gas allocation was not being followed as the country would
have to import 0.4 million tons urea due to closure of fertilizer units. He said that the government
would fetch US $600 to US $700 million by sale of 10 per cent shares of the OGDCL.
He further said that the government was working on two options of importing LNG-government
to government basis and through tender. He said that LNG would be a replacement fuel and
therefore, its price would be linked with oil in Pakistan. He further said that the government
would have to strike stable deal of long-term LNG contract for secured supply.
"I guarantee that the country would save US $300 million to US $800 million per annum by
using LNG in power plants," he said, adding that negotiations with Qatar and Malaysian firm
Petronas were going on for LNG supply. Secretary petroleum Abid Saeed told the committee
that ambiguity in appointment of acting MD PSO had been removed and the Prime Minister had
accorded approval. He maintained that the board of directors of PSO had been directed to
complete the process of appointing new MD by the end of December.
Member committee Abdul Nabi Bangash said that the FIA had harassed the MD PSO after
initiating inquiry soon after he took charge and his name was put on the ECL without any
evidence. Senators expressed their concerns regarding the damages due to delay in offloading
shipment from a ship tanker. MD PSO Amjad Janjua told the committee that it is a dispute
between the PSO and Pakistan National Shipping Corporation (PNSC) due to flawed contract
and it will be decided in the court that who is liable to pay the damages in the case. The meeting
was also told that currently the circular debt facing the PSO has exceeded Rs 200 billion due to
non-payment by a number of companies. The committee decided to call all defaulters in the next
meeting.
Friday, November 07, 2014
100mmcfd gas in winters crucial for textile industry's survival,' Chairman APTMA
ON ENERGY DEFICIENCY AND FALLING TEXTILE EXPORTS When S M Tanveer
moved to Lahore in the late 80s to set up Din Textile Mills Limited, it was the right thing to do
with deteriorating security situation in Karachi. Today power cost differential between mills
operating in Punjab and mills operating in Karachi has crossed Rs 10 million per month per mill
due to this non-availability of gas. So unlike the eighties, moving the facilities where gas is
available makes more sense today. However, dismantling the entire mill and re-erecting it all
over again is a tough job. Also the biggest roadblock for any business in Karachi is the security
situation in the metropolis. 'Even then, many players are considering of moving to Karachi',
disclosed Tanveer.
With very little gas available for the textile firms of Punjab, Tanveer highlighted that the industry
has no other cost-effective fuel options. 'Running the captive power plants on furnace oil or
diesel is very expensive. Coal cannot be brought in because you need to set up coal projects of at
least 40-50MW, whereas the capacity units area all scattered in the industry, currently. Whether
it is Din Textile or APTMA, 70 percent of my time is spent doing costing', he lamented.
When asked how the internationally low cotton prices have affected demand and the country's
textile exports, Tanveer emphasised that APTMA for the very same reason has been focusing on
the declining volumes, which is quite significant when compared to last year. He further added
that while the textile exports have been affected by the world-wide decrease in demand, power
shortage and the rupee appreciation have had the greatest adverse impact on the sector's exports.
APTMA's Chairman presented the case of decreasing textile exports amid worsening energy
crisis. 'Our textile exports in quantitative terms, calculated at today's price, has fallen by than one
billion dollars in the last six months, which projected for another six months would surmount to
$2.3 billion dollars lost in cotton yarn and cloth exports. And. More than 40 percent of our
production capacity is impaired over the last over year due to the shortage of energy', he
explained.
ON COST OF POWER AND INTER-PROVINCIAL DISPARITY 'In last one year, the
price of electricity has gone up by 67 percent, and that too for Punjab only. Why do I say this? 86
percent of PEPCO's load goes to the DISCOs in Punjab. APTMA's chairman also pointed out
towards inter provincial disparity in energy supply; he termed the current scenario with 10-12
hours of daily electricity load-shedding and 16 hours of daily gas suspension across Punjab only
as ill fit for regional growth in trade and investment.
'This has rendered our exports (Punjab) uncompetitive in the region', he said while pointing out
that Punjab incurs higher cost due to interruptions and unavailability of gas supply, while Sindhbased
industry fares pretty well when compared to the regional peers on electricity tariffs for its
captive power plants due to continuous gas supply.
Delving further into the inter-provincial cost disparity, the APTMA Chairman narrated that while
the electricity units from gas and the grid are Rs 6.75/KWh and Rs 14.81/KWh respectively for
Sindh, Punjab and KPK, gas supply availability of only 30 percent for Punjab and 100 percent
for the others, raises the average energy cost to Rs 12.31/KWh in Punjab. This gives rise to
energy cost differential of around Rs 82 billion per year for the textile industry in Punjab. The
situation is worse for the entire Punjab based industry as can be seen from the illustration where
this differential amounts to Rs 150 billion per year.
'And now with the government planning to even take away the 30 percent of gas availability this
winter, the inter-provincial cost differential will increase abnormally', he warned. S M Tanveer
told BR Research that in a recent summary moved and rejected for not cutting gas supply in
winters, there were proposals to provide electricity to the textile sector of Punjab instead of gas.
'I have to look at my cost, whatever fuel is being used; and since we have peak hour and off-peak
hour rates for power, replacing gas with electricity will further increase the average energy cost
for Punjab', he lamented.
'The textile mills with no gas are paying 130 percent higher cost in Punjab than industries in
other provinces. This cost differential for 55 mills with 135MW captive power capacity is more
than Rs 10 billion annually if compared with Sindh & KPK', he further informed.
ON GAS LOAD MANAGEMENT The APTMA Chairman was of the view that the
government should follow a plan that is in the best interest of the country, which includes
completely phasing out CNG - a big source of drain of the scarce natural resource.
'Right now, 1400mmcfd gas is the estimated available in SNGPL's system for Punjab, out of
which 500mmcfd goes for domestic cooking on average. Though the demand of the entire textile
industry in Punjab is that of 300mmcfd, we demand at least 100mmcfd 0f the remaining
900mmcfd this year to keep the industry running. All in all, the government is left with
800mmcfd of gas in the immediate term to be distributed elsewhere.'
When asked about the possible near term solution to the issue at hand for the textile sector of
Punjab, APTMA Chairman told BR Research that though 300mmcfd gas supply is the
requirement for the textile sector, an hourly basis for gas supply instead of the number of days in
a week would help the industry to at least survive by managing its peak hour and off peak hours.
'We are demanding at least 100mmcfd gas in winter, which we are currently getting', he said. On
this note, it means that at least no new gas is added to the system; APTMA Chairman pointed out
to a depletion of 200mmcfd of gas from the system in last one year.
'After the winters, the government is planning to bring in LNG. The problem with LNG is that
since it will be imported it will be expensive. At $18, my cost of doing business would again be
uncompetitive with other provinces, and my concern is my cost. The textile sector is on top priority for electricity in various aspects. First on Supreme Court's ruling of equitable
distribution of electricity, the industry has first priority. Second, as per IMF's deal, the
government will give electricity where there are no line losses beyond a certain threshold, there
is 100 percent recovery, and the rate is highest. Under such conditions industry again enjoys
priority as it has its own feeder directly from the grid, which is the easiest to monitor. Third,
under NEPRA's law, the industry has priority over many other sectors for electricity in case there
is shortage', he informed.
On being asked whether Sindh's gas supply should be reduced, Chairman APTMA said he would
never even think of it, He was of the view that Sindh is a part of the country and undoubtedly
should be allowed to prosper and grow.
ON POSSIBLE SOLUTIONS TO THE CHALLENGES OF THE TEXTILE INDUSTRY
'Apart from raw material cost, which accounts for 67 to 70 percent of sales, cost of electricity
and power has increased from 9.9 percent in 2013 to 11.67 percent in 2014 for Din Textile Mills
Limited. This is the second largest cost component', he added.
When asked to share his views on the possible short term and long term solutions to the situation
at hand, APTMA Chairman reiterated that full provision of 300mmcfd gas to generate 1500 MW
captive power on sustainable basis, ensuring viability of industry and ending present inter
province disparity of energy supply hold key in solving the ongoing energy related issues in
Punjab's textile industry. He also emphasised on the availability of electricity for 58 prime
electricity using textile mills.
'It is ironic that the government can float Eurobond with eight percent interest where it will have
to return the principal plus the mark-up in five to ten year time, but it cannot approve rebate on
incremental textile exports that will bring in permanent money and investment in the country', he
lamented. He also added that all efforts would further be cemented with the announcement of
regionally compatible Textile Policy for 2014-19
moved to Lahore in the late 80s to set up Din Textile Mills Limited, it was the right thing to do
with deteriorating security situation in Karachi. Today power cost differential between mills
operating in Punjab and mills operating in Karachi has crossed Rs 10 million per month per mill
due to this non-availability of gas. So unlike the eighties, moving the facilities where gas is
available makes more sense today. However, dismantling the entire mill and re-erecting it all
over again is a tough job. Also the biggest roadblock for any business in Karachi is the security
situation in the metropolis. 'Even then, many players are considering of moving to Karachi',
disclosed Tanveer.
With very little gas available for the textile firms of Punjab, Tanveer highlighted that the industry
has no other cost-effective fuel options. 'Running the captive power plants on furnace oil or
diesel is very expensive. Coal cannot be brought in because you need to set up coal projects of at
least 40-50MW, whereas the capacity units area all scattered in the industry, currently. Whether
it is Din Textile or APTMA, 70 percent of my time is spent doing costing', he lamented.
When asked how the internationally low cotton prices have affected demand and the country's
textile exports, Tanveer emphasised that APTMA for the very same reason has been focusing on
the declining volumes, which is quite significant when compared to last year. He further added
that while the textile exports have been affected by the world-wide decrease in demand, power
shortage and the rupee appreciation have had the greatest adverse impact on the sector's exports.
APTMA's Chairman presented the case of decreasing textile exports amid worsening energy
crisis. 'Our textile exports in quantitative terms, calculated at today's price, has fallen by than one
billion dollars in the last six months, which projected for another six months would surmount to
$2.3 billion dollars lost in cotton yarn and cloth exports. And. More than 40 percent of our
production capacity is impaired over the last over year due to the shortage of energy', he
explained.
ON COST OF POWER AND INTER-PROVINCIAL DISPARITY 'In last one year, the
price of electricity has gone up by 67 percent, and that too for Punjab only. Why do I say this? 86
percent of PEPCO's load goes to the DISCOs in Punjab. APTMA's chairman also pointed out
towards inter provincial disparity in energy supply; he termed the current scenario with 10-12
hours of daily electricity load-shedding and 16 hours of daily gas suspension across Punjab only
as ill fit for regional growth in trade and investment.
'This has rendered our exports (Punjab) uncompetitive in the region', he said while pointing out
that Punjab incurs higher cost due to interruptions and unavailability of gas supply, while Sindhbased
industry fares pretty well when compared to the regional peers on electricity tariffs for its
captive power plants due to continuous gas supply.
Delving further into the inter-provincial cost disparity, the APTMA Chairman narrated that while
the electricity units from gas and the grid are Rs 6.75/KWh and Rs 14.81/KWh respectively for
Sindh, Punjab and KPK, gas supply availability of only 30 percent for Punjab and 100 percent
for the others, raises the average energy cost to Rs 12.31/KWh in Punjab. This gives rise to
energy cost differential of around Rs 82 billion per year for the textile industry in Punjab. The
situation is worse for the entire Punjab based industry as can be seen from the illustration where
this differential amounts to Rs 150 billion per year.
'And now with the government planning to even take away the 30 percent of gas availability this
winter, the inter-provincial cost differential will increase abnormally', he warned. S M Tanveer
told BR Research that in a recent summary moved and rejected for not cutting gas supply in
winters, there were proposals to provide electricity to the textile sector of Punjab instead of gas.
'I have to look at my cost, whatever fuel is being used; and since we have peak hour and off-peak
hour rates for power, replacing gas with electricity will further increase the average energy cost
for Punjab', he lamented.
'The textile mills with no gas are paying 130 percent higher cost in Punjab than industries in
other provinces. This cost differential for 55 mills with 135MW captive power capacity is more
than Rs 10 billion annually if compared with Sindh & KPK', he further informed.
ON GAS LOAD MANAGEMENT The APTMA Chairman was of the view that the
government should follow a plan that is in the best interest of the country, which includes
completely phasing out CNG - a big source of drain of the scarce natural resource.
'Right now, 1400mmcfd gas is the estimated available in SNGPL's system for Punjab, out of
which 500mmcfd goes for domestic cooking on average. Though the demand of the entire textile
industry in Punjab is that of 300mmcfd, we demand at least 100mmcfd 0f the remaining
900mmcfd this year to keep the industry running. All in all, the government is left with
800mmcfd of gas in the immediate term to be distributed elsewhere.'
When asked about the possible near term solution to the issue at hand for the textile sector of
Punjab, APTMA Chairman told BR Research that though 300mmcfd gas supply is the
requirement for the textile sector, an hourly basis for gas supply instead of the number of days in
a week would help the industry to at least survive by managing its peak hour and off peak hours.
'We are demanding at least 100mmcfd gas in winter, which we are currently getting', he said. On
this note, it means that at least no new gas is added to the system; APTMA Chairman pointed out
to a depletion of 200mmcfd of gas from the system in last one year.
'After the winters, the government is planning to bring in LNG. The problem with LNG is that
since it will be imported it will be expensive. At $18, my cost of doing business would again be
uncompetitive with other provinces, and my concern is my cost. The textile sector is on top priority for electricity in various aspects. First on Supreme Court's ruling of equitable
distribution of electricity, the industry has first priority. Second, as per IMF's deal, the
government will give electricity where there are no line losses beyond a certain threshold, there
is 100 percent recovery, and the rate is highest. Under such conditions industry again enjoys
priority as it has its own feeder directly from the grid, which is the easiest to monitor. Third,
under NEPRA's law, the industry has priority over many other sectors for electricity in case there
is shortage', he informed.
On being asked whether Sindh's gas supply should be reduced, Chairman APTMA said he would
never even think of it, He was of the view that Sindh is a part of the country and undoubtedly
should be allowed to prosper and grow.
ON POSSIBLE SOLUTIONS TO THE CHALLENGES OF THE TEXTILE INDUSTRY
'Apart from raw material cost, which accounts for 67 to 70 percent of sales, cost of electricity
and power has increased from 9.9 percent in 2013 to 11.67 percent in 2014 for Din Textile Mills
Limited. This is the second largest cost component', he added.
When asked to share his views on the possible short term and long term solutions to the situation
at hand, APTMA Chairman reiterated that full provision of 300mmcfd gas to generate 1500 MW
captive power on sustainable basis, ensuring viability of industry and ending present inter
province disparity of energy supply hold key in solving the ongoing energy related issues in
Punjab's textile industry. He also emphasised on the availability of electricity for 58 prime
electricity using textile mills.
'It is ironic that the government can float Eurobond with eight percent interest where it will have
to return the principal plus the mark-up in five to ten year time, but it cannot approve rebate on
incremental textile exports that will bring in permanent money and investment in the country', he
lamented. He also added that all efforts would further be cemented with the announcement of
regionally compatible Textile Policy for 2014-19
Institution of Electrical and Electronics Engineers Pakistan may float shares of energy projects on bourses
Institution of Electrical and Electronics Engineers Pakistan (IEEEP) President Engineer Mohsin
M Syed has suggested that shares of energy projects be floated in the stock exchanges to collect
billions of rupees for energy projects. He was addressing the 35th Annual Convention/ AGM of
IEEEP here on Thursday. Chief Executive ICI Pakistan and founding member of IEEEP engineer
Shafiq A Siddiqi was the chief guest of the event.
Mohsin Syed said Pakistan was currently facing a minimum shortage of 10,000 megawatts. He
suggested that "we should plan to generate cost effective 50,000MW of electricity by 2030 in
order to provide electricity to 45 percent Pakistanis who are not connected to the grid."
Solar energy, he said, was an option in which every Pakistani could participate by installing 1-5
kilowatts in their homes. "This can remove 3,000 megawatts of load from distribution network
which will be given to the industry adding that this will create jobs. Similarly agriculture tube
wells from 15-20 kilowatts can be converted to solar energy and 200,000 tube wells can spare
another 3,000MW from the distribution system benefiting the former by reducing the input cost
of water."
He also suggested that projects like 6,000MW to 10,000MW could be set up at Keti Bander
where initially imported coal could be used and gradually replaced by Thar coal. He suggested
that there was a need to study the use of three-phase electricity meters for homes. "All the utility
system in North America and Japan uses single phase transformers, which are cost effective for
users and are better suited for load balancing on all phase by the utility company."
Syed hoped that the government would create the critical mass of technologists in the technical
ministries, who would ensure logical and strategic planning at the right forums. IEEEP Honorary
Secretary General Rana Abdul Jabbar Khan presented the annual report in which he highlighted
the activities of the IEEEP such as holding of symposiums, seminars, workshops, lectures and
publications of research journals "New Horizons".
He also said "the ongoing energy crisis is calling us to go for solar energy for bridging the
demand supply gap. Therefore, institution needs to disseminate latest technical knowledge about
renewable technologies like solar, wind and the biomass etc."
M Syed has suggested that shares of energy projects be floated in the stock exchanges to collect
billions of rupees for energy projects. He was addressing the 35th Annual Convention/ AGM of
IEEEP here on Thursday. Chief Executive ICI Pakistan and founding member of IEEEP engineer
Shafiq A Siddiqi was the chief guest of the event.
Mohsin Syed said Pakistan was currently facing a minimum shortage of 10,000 megawatts. He
suggested that "we should plan to generate cost effective 50,000MW of electricity by 2030 in
order to provide electricity to 45 percent Pakistanis who are not connected to the grid."
Solar energy, he said, was an option in which every Pakistani could participate by installing 1-5
kilowatts in their homes. "This can remove 3,000 megawatts of load from distribution network
which will be given to the industry adding that this will create jobs. Similarly agriculture tube
wells from 15-20 kilowatts can be converted to solar energy and 200,000 tube wells can spare
another 3,000MW from the distribution system benefiting the former by reducing the input cost
of water."
He also suggested that projects like 6,000MW to 10,000MW could be set up at Keti Bander
where initially imported coal could be used and gradually replaced by Thar coal. He suggested
that there was a need to study the use of three-phase electricity meters for homes. "All the utility
system in North America and Japan uses single phase transformers, which are cost effective for
users and are better suited for load balancing on all phase by the utility company."
Syed hoped that the government would create the critical mass of technologists in the technical
ministries, who would ensure logical and strategic planning at the right forums. IEEEP Honorary
Secretary General Rana Abdul Jabbar Khan presented the annual report in which he highlighted
the activities of the IEEEP such as holding of symposiums, seminars, workshops, lectures and
publications of research journals "New Horizons".
He also said "the ongoing energy crisis is calling us to go for solar energy for bridging the
demand supply gap. Therefore, institution needs to disseminate latest technical knowledge about
renewable technologies like solar, wind and the biomass etc."
Unemployed manpower can be made effective through technical training
President Pak-China Joint Chamber of Commerce and Industry (PCJCCI) Shah Faisal Afridi said
that Pakistan can make its unemployed manpower effective in the current scenario by providing
technical training in industry related work ambits.
He stated this after having a meeting with Yuan lee, General Manager Shandong Shifeng Group
Co, Ltd and Tony Niu, Business Manager at International Trade Department, Shandong Shifeng
Group has said that China is witnessing economic transformation at a massive scale by following
the European model of relocating part of its manufacturing sector to economically viable places
that offer skilled labour at cheap wages.
Afridi was confident that Pakistan can attract Chinese manufacturing sector by developing a
trained workforce for industries. He termed this phenomenon as a great industrial transfer, which
has brought in plenty of opportunities also for Pakistan. President PCJCCI explicated that
Pakistan has the 9th largest labour force in the world. According to the Labour Force Survey
2013-14, the total labour force in the country is 57.24 million. Out of this 3.40 million people are
unemployed and rest are employed to places that do not suite to their area of expertise, he added.
He further pointed that export of quality manpower is the main driver in growth of remittances;
therefore the structure of existing population of Pakistan shows that the country has 60 percent
economically active population or work force which can prove to be a productive asset of the
country if properly trained through skill development programmes.
Faisal Afridi said that China is ready to assist Pakistan also in empowering its labour force in
accordance with its industrial requirements through the formation of collaborative Research
institutes and capacity building organisations that would impart vocational training Chinese work
ethics including language and communication to the Pakistani labour.
China would establish such training institutes in Pakistan that would keep themselves in touch
with the ongoing industrial trends, getting their input on the kind of workforce it requires, the
institutes would be empowered enough to have machines, tools and technology used by textile,
pharmaceuticals and surgical industries to ensure a well trained and competent labour force for
future consumption, he added.
Afridi urged the government to take immediate steps to modify and empower existing vocational
training institutes like Tevta. Currently, Tevta enrolls around 120,000 students in its technical
training institutes, while the demand in the market is over one million, said Afridi and pointed
out that the government of Pakistan needs to invest in skilled workers to bridge the imbalances
that occur due to inadequacy in human resource development.
that Pakistan can make its unemployed manpower effective in the current scenario by providing
technical training in industry related work ambits.
He stated this after having a meeting with Yuan lee, General Manager Shandong Shifeng Group
Co, Ltd and Tony Niu, Business Manager at International Trade Department, Shandong Shifeng
Group has said that China is witnessing economic transformation at a massive scale by following
the European model of relocating part of its manufacturing sector to economically viable places
that offer skilled labour at cheap wages.
Afridi was confident that Pakistan can attract Chinese manufacturing sector by developing a
trained workforce for industries. He termed this phenomenon as a great industrial transfer, which
has brought in plenty of opportunities also for Pakistan. President PCJCCI explicated that
Pakistan has the 9th largest labour force in the world. According to the Labour Force Survey
2013-14, the total labour force in the country is 57.24 million. Out of this 3.40 million people are
unemployed and rest are employed to places that do not suite to their area of expertise, he added.
He further pointed that export of quality manpower is the main driver in growth of remittances;
therefore the structure of existing population of Pakistan shows that the country has 60 percent
economically active population or work force which can prove to be a productive asset of the
country if properly trained through skill development programmes.
Faisal Afridi said that China is ready to assist Pakistan also in empowering its labour force in
accordance with its industrial requirements through the formation of collaborative Research
institutes and capacity building organisations that would impart vocational training Chinese work
ethics including language and communication to the Pakistani labour.
China would establish such training institutes in Pakistan that would keep themselves in touch
with the ongoing industrial trends, getting their input on the kind of workforce it requires, the
institutes would be empowered enough to have machines, tools and technology used by textile,
pharmaceuticals and surgical industries to ensure a well trained and competent labour force for
future consumption, he added.
Afridi urged the government to take immediate steps to modify and empower existing vocational
training institutes like Tevta. Currently, Tevta enrolls around 120,000 students in its technical
training institutes, while the demand in the market is over one million, said Afridi and pointed
out that the government of Pakistan needs to invest in skilled workers to bridge the imbalances
that occur due to inadequacy in human resource development.
Eight Economic uplift schemes approved by Punjab government
The Punjab government approved eight development schemes of various development sectors
with an estimated cost of Rs 6592.873 million including Management of Hill Torrents in
Irrigation Zone, DG Khan-Sori Lund, Vidore, Mithawan, Kaha & Chachar (Sori Lund Hill
Torrent) at the cost of Rs 2060.487 million to save D K Khan division from ravages of floods.
According to P&D spokesman, the approved development schemes included:
1. Widening/improvement of road from Misri More to Khewra via PD Khan length 52.78 km
District Jhelum at the cost of Rs 1209.307 million,
2. Concrete lining of Maggi-Magasson Link RD 0-58500 in Basira Sub Division, Muzaffargarh
at the cost of Rs 489.831 million,
3. Rehabilitation of Ahmadpur Lamma Disty System, Rahim Yar Khan at the cost of Rs 1148.96
million,
4. Rehabilitation of Jatoi Branch from RD:0+000 to RD:140+000 (Tail), Muzaffargarh at the
cost of Rs 496.396 million,
5. Checking Erosive Action of Chenab River on Left Bank Near Gangwal, Papin Village U/S of
Marala Barrage, Sialkot at the cost of Rs 365.424 million,
6. Raising of Shahpur Dam (Phase-I), Attock at the cost of Rs 261.174 million,
7. Management of Hill Torrents in Irrigation Zone, DG Khan-Sori Lund, Vidore, Mithawan,
Kaha & Chachar (Sori Lund Hill Torrent) at the cost of Rs 2060.487 million and
8. Strengthening Field Research Station (FRS) at Babakwal and Research Laboratories of
Irrigation Research Institute, Lahore Introducing Numerical Modeling of Hydraulic Structures at
the cost of Rs 561.294 million.
with an estimated cost of Rs 6592.873 million including Management of Hill Torrents in
Irrigation Zone, DG Khan-Sori Lund, Vidore, Mithawan, Kaha & Chachar (Sori Lund Hill
Torrent) at the cost of Rs 2060.487 million to save D K Khan division from ravages of floods.
According to P&D spokesman, the approved development schemes included:
1. Widening/improvement of road from Misri More to Khewra via PD Khan length 52.78 km
District Jhelum at the cost of Rs 1209.307 million,
2. Concrete lining of Maggi-Magasson Link RD 0-58500 in Basira Sub Division, Muzaffargarh
at the cost of Rs 489.831 million,
3. Rehabilitation of Ahmadpur Lamma Disty System, Rahim Yar Khan at the cost of Rs 1148.96
million,
4. Rehabilitation of Jatoi Branch from RD:0+000 to RD:140+000 (Tail), Muzaffargarh at the
cost of Rs 496.396 million,
5. Checking Erosive Action of Chenab River on Left Bank Near Gangwal, Papin Village U/S of
Marala Barrage, Sialkot at the cost of Rs 365.424 million,
6. Raising of Shahpur Dam (Phase-I), Attock at the cost of Rs 261.174 million,
7. Management of Hill Torrents in Irrigation Zone, DG Khan-Sori Lund, Vidore, Mithawan,
Kaha & Chachar (Sori Lund Hill Torrent) at the cost of Rs 2060.487 million and
8. Strengthening Field Research Station (FRS) at Babakwal and Research Laboratories of
Irrigation Research Institute, Lahore Introducing Numerical Modeling of Hydraulic Structures at
the cost of Rs 561.294 million.
Organisation for Economic Co-operation and Development urges countries to step up support for fragile growth
The OECD called Thursday on the world's leading countries to step up measures to support
flagging global growth, in particular urging the ECB to overcome its reluctance and undertake
quantitative easing. It made the appeal in an early update to its global economic forecasts before
G20 leaders hold a summit next week in Australia.
Noting that risks to the global economy remain high and market volatility may rise, OECD chief
Angel Gurria warned of an increasing risk of stagnation in the eurozone that would further
darken already gloomy global economic skies. "Countries must employ all monetary, fiscal and
structural reform policies at their disposal to address these risks and support growth," he said.
The Organisation for Economic Co-operation and Development, which provides economic
analysis and advice to its industrialised country members, lowered its forecast for global growth
this year by a tenth of a percentage point to 3.3 percent. For 2015 it cut the forecast by two tenths
of a point to 3.7 percent growth. It left in place its forecast for the 18-nation eurozone to grow by
0.8 percent this year and by 1.1 percent in 2015. The OECD's chief economist Catherine Mann
warned that "overall, the euro area is grinding to a standstill and poses a major risk to world
growth..." The organisation urged the European Central Bank to expand its monetary stimulus
programme given the very weak economy and the risk of deflation.
flagging global growth, in particular urging the ECB to overcome its reluctance and undertake
quantitative easing. It made the appeal in an early update to its global economic forecasts before
G20 leaders hold a summit next week in Australia.
Noting that risks to the global economy remain high and market volatility may rise, OECD chief
Angel Gurria warned of an increasing risk of stagnation in the eurozone that would further
darken already gloomy global economic skies. "Countries must employ all monetary, fiscal and
structural reform policies at their disposal to address these risks and support growth," he said.
The Organisation for Economic Co-operation and Development, which provides economic
analysis and advice to its industrialised country members, lowered its forecast for global growth
this year by a tenth of a percentage point to 3.3 percent. For 2015 it cut the forecast by two tenths
of a point to 3.7 percent growth. It left in place its forecast for the 18-nation eurozone to grow by
0.8 percent this year and by 1.1 percent in 2015. The OECD's chief economist Catherine Mann
warned that "overall, the euro area is grinding to a standstill and poses a major risk to world
growth..." The organisation urged the European Central Bank to expand its monetary stimulus
programme given the very weak economy and the risk of deflation.
European Central Bank keeps interest rates at record lows
European Central Bank members are all prepared to take more policy action if necessary and the
bank's staff will prepare the groundwork in case, President Mario Draghi said on Thursday. The
ECB kept interest rates at a record low 0.05 percent at it monthly meeting, waiting to see how
stimulus measures laid out in recent months unfold.
Draghi said risks to the euro zone's recovery remained skewed to the downside and told a news
conference: "The Governing Council is unanimous in its commitment to using additional
unconventional instruments within its mandate. "The Governing Council has tasked ECB staff
and the relevant Eurosystem (central bank) committees with ensuring the timely preparation of
further measures to be implemented if needed," he said.
After the US Federal Reserve ended its bond-buying programme while the Bank of Japan
increased its pace money creation, markets are trying to judge how close the ECB is to launching
more aggressive steps, such as quantitative easing money-printing to buy large amounts of
government bonds. There has been mounting discomfort over Draghi's leadership style.
Reuters reported on Tuesday national central bankers in the euro area planned to challenge
Draghi over his communication style and in particular his mention of a balance sheet target for
how much money the ECB planned to pump into the economy after the Governing Council
agreed not to make any figure public in September. Draghi reaffirmed that target, saying the balance sheet would "move towards the dimensions it had at the beginning of 2012". He added
that the policymaking Governing Council had signed up to that unanimously but nodded to some
policy differences.
"When we differ in our views and our policies ... there is no drawing of a line between North and
South. There is no coalition, not at all," Draghi said. "The dinner (before Thursday's meeting)
went better than expected," Draghi said. The euro hit a 26-month low and peripheral European
bond yields fell after he affirmed the target and highlighted risks to economic growth.
To keep the euro zone from slipping into deflation, the ECB has started pumping more money
into the banking system through purchases of private debt and offers of long-term loans, aiming
to boost its balance sheet by up to 1 trillion euros. There is growing doubt whether its current
measures will be enough, but the ECB is expected to wait until it gets a clearer view of the
impact of its asset purchases and four-year loans to banks before adding further stimulus.
Sources close to the ECB have told Reuters that its plan to buy private-sector assets may fall
short of its goal and pressure is likely to build for bolder action early next year, firstly moving
into the corporate bond market.
bank's staff will prepare the groundwork in case, President Mario Draghi said on Thursday. The
ECB kept interest rates at a record low 0.05 percent at it monthly meeting, waiting to see how
stimulus measures laid out in recent months unfold.
Draghi said risks to the euro zone's recovery remained skewed to the downside and told a news
conference: "The Governing Council is unanimous in its commitment to using additional
unconventional instruments within its mandate. "The Governing Council has tasked ECB staff
and the relevant Eurosystem (central bank) committees with ensuring the timely preparation of
further measures to be implemented if needed," he said.
After the US Federal Reserve ended its bond-buying programme while the Bank of Japan
increased its pace money creation, markets are trying to judge how close the ECB is to launching
more aggressive steps, such as quantitative easing money-printing to buy large amounts of
government bonds. There has been mounting discomfort over Draghi's leadership style.
Reuters reported on Tuesday national central bankers in the euro area planned to challenge
Draghi over his communication style and in particular his mention of a balance sheet target for
how much money the ECB planned to pump into the economy after the Governing Council
agreed not to make any figure public in September. Draghi reaffirmed that target, saying the balance sheet would "move towards the dimensions it had at the beginning of 2012". He added
that the policymaking Governing Council had signed up to that unanimously but nodded to some
policy differences.
"When we differ in our views and our policies ... there is no drawing of a line between North and
South. There is no coalition, not at all," Draghi said. "The dinner (before Thursday's meeting)
went better than expected," Draghi said. The euro hit a 26-month low and peripheral European
bond yields fell after he affirmed the target and highlighted risks to economic growth.
To keep the euro zone from slipping into deflation, the ECB has started pumping more money
into the banking system through purchases of private debt and offers of long-term loans, aiming
to boost its balance sheet by up to 1 trillion euros. There is growing doubt whether its current
measures will be enough, but the ECB is expected to wait until it gets a clearer view of the
impact of its asset purchases and four-year loans to banks before adding further stimulus.
Sources close to the ECB have told Reuters that its plan to buy private-sector assets may fall
short of its goal and pressure is likely to build for bolder action early next year, firstly moving
into the corporate bond market.
OGDCL shares divestment: floor price set at Rs 216
The Cabinet Committee on Privatisation approved the floor price for divestment of 10% GoP
shares of OGDCL. Finance Minister, Senator Ishaq Dar who is in Dubai attending IMF talks,
chaired the meeting in Islamabad through a telecom link, says a press release issued here on
Thursday. After detailed deliberations, the Committee accorded approval to a floor price of Rs
216 per share as recommended by the Privatisation Commission.
An approval was also accorded to a 3-day book building process "with floor price to be applied
prior to opening of book on November 6, 2014". As agreed with the Financial Advisory
Commission (FAC), book building was launched on November 5; and it would conclude on
November 7, 2014 at 10.00pm (PST). It may be added that the consortium comprising M/s
Citibank, Bank of America/Merill Lynch and KASB was appointed in April this year which is
acting as Financial Advisory Consortium (FAC) for the divestment of up to 10% GoP shares in
OGDCL through international and domestic capital markets.
Ishaq Dar said that complete transparency has been ensured throughout the process leading to
divestment of the OGDCL shares. The meeting was attended by Minister for P&NR Shahid
Khaqan Abbasi, Minister for Commerce, Khurram Dastgir, Minister for Law and Justice, Pervaiz
Rashid, Minister for Planning and Development, Ahsan Iqbal, Minister for Textile Industry,
Abbas Khan Afridi, Chairman Privatisation Commission, Mohammad Zubair, Advisor Finance
Division, Rana Asad Amin and other senior officials.
shares of OGDCL. Finance Minister, Senator Ishaq Dar who is in Dubai attending IMF talks,
chaired the meeting in Islamabad through a telecom link, says a press release issued here on
Thursday. After detailed deliberations, the Committee accorded approval to a floor price of Rs
216 per share as recommended by the Privatisation Commission.
An approval was also accorded to a 3-day book building process "with floor price to be applied
prior to opening of book on November 6, 2014". As agreed with the Financial Advisory
Commission (FAC), book building was launched on November 5; and it would conclude on
November 7, 2014 at 10.00pm (PST). It may be added that the consortium comprising M/s
Citibank, Bank of America/Merill Lynch and KASB was appointed in April this year which is
acting as Financial Advisory Consortium (FAC) for the divestment of up to 10% GoP shares in
OGDCL through international and domestic capital markets.
Ishaq Dar said that complete transparency has been ensured throughout the process leading to
divestment of the OGDCL shares. The meeting was attended by Minister for P&NR Shahid
Khaqan Abbasi, Minister for Commerce, Khurram Dastgir, Minister for Law and Justice, Pervaiz
Rashid, Minister for Planning and Development, Ahsan Iqbal, Minister for Textile Industry,
Abbas Khan Afridi, Chairman Privatisation Commission, Mohammad Zubair, Advisor Finance
Division, Rana Asad Amin and other senior officials.
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