ndustrial OPTION i ©RAD Federation
?Water & Power Gas? & Petrol Law? & Order ?Food Role of Chambers of Commerce in
Effecting Change - Page 11
“How India backed-out from its preemptive Media & War Campaign against Pakistan”
Industrial Option Monthly is publihsed from 23-KM, Lahore An Idiot’s Guide to Campaigns - Page 34 Sheikhupura Road and Printed by MITHAS Enterprises Press, Kamal Road, Kamal Gunj Lahore. “You cannot be big unless you are prepared to kiss the ground. You cannot defend the soil unless you know the smell of that soil. I know the smell of our soil. I know the rhythm of our rivers. I know the beat of our drums. The theories, the dogmas and the scripts stand outside the gates of history. The domi- nant factor is the aspiration of the people and the ability to seek total identification with it. Once the significance of the symphony is grasped, the lines fall into place, the dogmas and theories get legs Golden Words of to move in time to the maj- esty of that music. This does Bhutto - Today & not mean that I am preaching pragmatism. There is a lot of Forever expediency in pragmatism. I am trying to trace the roots of the problems, the genesis of the challenges, the cause of the struggle”
Mandiali Paper Mill (Pvt.) Ltd. Industrial Option January 2009 | industrialoption.com Table of Contents 5 - Help youself and row to the shore: 24 - Global Food Crisis: A Bowl of Opportunities SCCI’s vision for new generation for Muslim World 6 - Editorial 27 - Why Should I get Education? The Presidency and Bureaucratic system 28 - Survival Tips for Managing 11 - Role of Chambers of Commerce in Effect During an Economic Downturn ing Change 30 - Pakistan Timeline An organizational reform proposal for FPCCI based on Chambers 34 - How India backed-out from Power Model its preemptive Media & War 14 - Energy Profile of Pakistan Campaign against Pakistan” 20 - Pakistan’s energy crisis: short An Idiot’s Guide to Campaigns and long-term solutions 38 - News & Views
Trade Ordinance 2007
The Tap Opener Commerce Division FPCCI Chambers Associations Trade Policy Information Sharing...
Courtesy
Sheikhupura Association of Industry (SAI) chambers Sheikhupura Chamber of Commerce & Industry (SCCI) database associations information
public trade Growth
economy
public Stop Ignoring Sheikhupura
We need to Develop a Society based on Dialogue instead of violence and pressure. Motorway? Road Network? Banks? Police Civil Society Liasion? Laborers Colonies? Poverty? Vocational Training? Industrial Facilitation? Education? Heritage? Agriculture?
Mughal Steel (Pvt.) Ltd. Industrial Option January 2009 | industrialoption.com Help yourself and row to the shore: SCCI’s Vision for New-Generation
Poverty is multidimensional, involving not only a lack of income, but also ill-health, illiteracy, lack of access to basic social SCCI Helps you by all means services, and little opportunity to partici- pate in the processes that influence peo- ple’s lives. It is also pervasive, as 1.2 billion people around the globe still live on less than a dollar a day and nearly 850 million people go hungry every night. Poverty reduction should therefore be the centre of development efforts.
SCCI’s work on the strategies and poli- cies for poverty reduction is anchored in three basic principles: the multi-dimen- sionality of poverty, the centrality of gen- der equality and the critical importance of a cross-cutting approach. We believe that economic growth is necessary for sustained poverty reduction, but it is not sufficient. Poor people should not only benefit equitably from economic growth, they should have the opportunity to ac- tively contribute to its generation. Equity is a major dimension of the economic growth-poverty reduction nexus.
As a result, strategies and policies for poverty reduction must cover many areas. Key areas of SCCI’s vision 2009-2010 for poverty reduction support include:
* Macroeconomic and Way to Success structural policies - for- mulating the overall policy framework for growth for poverty reduction;
* Employment for pov- policies and management, poverty reduction through erty reduction – strategies to make sure they comple- policy interventions for the employment- eco- ment poverty reduction * Civil society and – de- nomic growth-poverty initiatives veloping strategies for reduction nexus; * Information and Com- partnering with civil soci- Agriculture? * Public resource man- munication Technology ety in overcoming poverty agement – focusing on for Development (ICTD) fiscal issues, in terms of – making ICT work for
Madina Trading Company
Page - Industrial Option January 2009 | industrialoption.com Editor’s Desk
“advisor” means giving “advice,” right, The Presidency and not providing all the facts. Of course, there’s also the problem of job security. When a politically-appointed Bureaucratic system boss insists in some way to “get the results that I want!” regarding a piece of I think the problem with the Presidency rises to the highest non-politically-ap- intelligence or other data, it is probably begins with people who care about pointed positions in government, the in one’s career interest to find the data, certain social problems. Not any one more dangerous he becomes. Whether or spin the dubious facts you have to fit problem in particular, not rural poverty, in the military, intelligence, diplomacy, the requirements of the boss. inner-city education, world democracy, law-enforcement, or social welfare, the population growth, trade deficits, arma- knowledge and advice that the bureau- A services company executive can’t ments, or whatever. And I’m not say- crat gives to his boss, whether it be a make the same demands. The boss ing that it’s wrong to care about these Minister, Secretary, or maybe even the may say, “Our best act sold ten million problems. But once people have been President himself, is but one piece of of sales the last time. Make sure new trained that only government can solve advice among many. With your one shot, services sells twelve million!” Sure, the problem, all hell can break loose. give them the best you got. heads may roll if the album fails to live up to the boss’s demands, but what can’t Because then “public service” becomes a Are these senior officials supposed to be hidden successfully is the actual data highly-valued, honorable profession. So- know and understand every detail of – the actual sales of the services. cially-concerned people get the proper everything? They would be swamped, education and become bureaucrats with conflicting reports, interpretations, Services sales, or sales on anything, or – experts in their field. I have no doubt and recommendations. television ratings, provide pretty much than most of them care about what they irrefutable data. Not so the questions of do, that they want to do good. That’s In such an environment, if I were a bu- government. What does “obesity” mean? probably half the problem right there. reaucrat, I’d be inclined, even if uncon- What’s the difference between healthy Caring about what they do, their budget sciously, to spin all the relevant facts into drugs and unhealthy, immoral drugs? is never large enough – they are always a recommendation that I think would be What is a wetland? Or an under-per- shafted, understaffed, and underpaid best for the country. I’d probably omit forming school? – and they can’t do their jobs properly. data I personally thought was unim- portant and emphasize what I thought The free-market has the objectivity of To the degree that the bureaucrat are the crucial points. After all, being an prices, whereas the government bureau-
Page - Industrial Option January 2009 | industrialoption.com Editor’s Desk crat has the subjectivity of “social prob- the nation’s campaign finance laws can to hear, or what his advisors expect him lems.” In a free market, if the money isn’t operate in full accordance with the to want to hear. The unvarnished truth coming in through sales, the business Constitution. is the casualty. And how do we know will have to close. But the more that that senior bureaucrats and advisors coercion infects a society through taxa- The libertarian answer to all of these is even know the truth themselves, but rely tion, price control, and prohibition, the pretty clear: get the federal government instead on what the lower-levels report less freedom producers and consumers out of the way. But since few people to them?
©RAD Federation
can set prices, and the more bureaucrats are libertarian, and no President ever is, Even the most honest, principled and have the leeway to cook the statistics to all of these issues become irreducibly well-meaning of men would be consid- bend to whatever they or their politi- complex. That means, when the princi- ered a corrupt failure as President. cally-appointed superiors see fit. ple of freedom is rejected out of hand, discerning the best of the remaining The President is always too susceptible For some people in government, no indi- options requires supernatural, God-like to bad advice, and no human being is vidual will ever be fit enough, no country intelligence. capable of always knowing when to get will ever be democratic enough, the good advice. Even a “good” man who environment will never be clean enough, The President can’t possibly know or is President will mislead the Pakistani the teachers will never be paid enough. anticipate the effects of all of his execu- people on numerous occasions, even if Public policy can bend to their demands, tive orders and bill signings. He has to he isn’t aware of it. no matter how inaccurate or wasteful rely on advisors – not being a libertarian, they may be. there’s no other realistic choice. To make The political and bureaucratic structure the “right decision” on matters he barely of the office of the Presidency is too Through the maze of political appoint- knows anything about, he must trust his complicated for one person to manage ments and specialized, self-interested appointed underlings, political advisors, or control. The job as modern Pakistan bureaucracy, how can a President be and the professional bureaucrats. has created it, is literally too big for one trusted? In other words, the President is man. And the only solution to that is to forced to be responsible for so much, an Why can’t the President be trusted? substantially shift the focus from cutting expert of everything from stem cells to Because the margin of error for anything cost to efficiency in bureaucratic system. the international trade to the religious he does is too great. The President re- Manzoor Malik and ethnic divisions of Pakistan to how ceives either what his advisors want him Editor in-Chief
Page - Industrial Option January 2009 | industrialoption.com
i ndustrial OPTION Introduction to Industrial Option Industrial Option Newsletter covers all lutions for many of the party’s needs. Real around 25-30% well. aspects of business, from Pakistan and in- moment market allows buyers to go fast ternational market news and analysis of resolution; two main indicators of party Reduced elevated costs: Thanks to economic trends to articles on the peo- productivity are Increased Revenue and sleek supply string elevated costs can be ple and technologies that influence how Cost Saving. Products offered on a mar- reduced upward to 30 percentages. we do business every day. It is written ket are integrated with the www.indus- expressly for top business decision-mak- trialoption.com. B2B exchanges: The landscape is lit- ers and opinion leaders who need an tered with hundreds of B2B exchanges international outlook in an increasingly There are new benefits that party can ob- that have failed, demonstrating that suc- global marketplace. Each month issue tain from participating in industrialoption. cess is far from automated. But many are explores the links between domestic Of- com market as easily. yet operating. They have learned how to fers reporting, commentary, and analysis go reward of the opportunities and avert on world politics, finance, and business For purchaser participants a B2B market the drawbacks of this energetic original trends. Also covers science and technol- offers as mentioned below: merchandising line. The sales string inte- ogy, literature and the arts. When people grated into a Business to Business market get serious about business they read In- Time savings: Provides for faster ac- covers every phase of selling procedure dustrial Option. ceptance, ordering processes and saving including quote, dialogue, billing and con- tracking. signment tracking. IndustrialOption.com an online businesses to business portal Access to original suppliers: B2B www.industrialoption.com is an innova- market involvement removes geographic tive and comprehensive online business- IndustrialOption.com is a huge commu- fences and provides approach to original to-business (B2B) portal, which provides nity of buyers, sellers and industrialists. suppliers. a professional platform for the Pakistani exporters, producers, suppliers and oth- For the job to job marketplace, brand can Increased sales: With approach to a ers who are involved into import-export be merely defined as the lot of images, wider marketplace, suppliers have the po- trade. Since inception in 2008, Indus- image and feelings that are evoked in the tentiality to increase revenue. trialOption emerged as an international psyche of your customers and prospects plateau for thousands of consultants, at the reference of your figure. Reduced sales and backing costs By au- importers-exporters, agencies and firms tomating sales and client backing proc- to transact business globally without any IndustrialOption.com is one-stop job so- esses companies can cut over chief costs intermediaries.
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23-KM, Lahore Sheikhupura Road, Qila Satar Shah. Phone: 042-7970711-12 Fax: 042-7970713 Web: http://www.industrialoption.com Research & Development Federation Industrial Option Pvt. Ltd Email: [email protected] http://www.radf.org http://www.industrialoption.com The views expressed in articles are those of Authors only and do not represent the views of Industrial Option or its iaffiliates. Authors are solely responsible for the contents of their articles and are not employees or otherwise affiliated with Industrial Option in their role as authors.
Page - 8 Industrial Option January 2009 | industrialoption.com A Tribute ndustrial To Mohtarma
“She will always be remembered as one of the most courageous women in the world. In an atmosphere of intolerance she escalated herself to the most prominant political position in her country. Her loss will be suffered in Pakistan and across the world. Let her name ring across the world as an example to us all”
i UBC Convertec (Pvt.) Ltd.
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Page - 10 Industrial Option JanuaryJanuary 2009 2009 | industrialoption.com | industrialoption.com Featured Role of Chambers of Commerce in Effecting Change An organizational reform proposal for FPCCI based on Chambers Power Model CHAMBERS POWER MODEL
©RAD Federation
Business associations and chambers of in countries across the globe because develop solutions, advocate for change, commerce have a unique and impor- bad governance and widespread cor- and monitor implementation. Through tant role to play in building democratic ruption reduce competitiveness, divert such a process of private sector advo- systems. They are the voice of business, investments, limit productive potential of cacy, chambers of commerce not only advocating business needs and concerns companies, and impose additional costs improve economic regulations, they also and solutions to problems to the gov- of doing business. While it is diffcult for strengthen participatory democratic in- ernment, community leaders, the media, individual companies to systematically stitutions. Highlighting this link between and the general public. No one knows address these problems, which stem democratic and economic development better what is good for business than from weak institutional environments, is crucial in that it is impossible to build a business person, and then business chambers can be more effective in mo- a functioning market economy in an people together can be more effective in bilizing the resources and knowledge to environment where business is barred effecting change than one alone. This is effect change. from participation in policy design and the foundation upon which chambers of implementation. commerce are built. Chambers of commerce and other types of professional business associations play Many countries increasingly recognize Chambers of commerce are uniquely po- a pivotal role in building a foundation for the role that the private sector plays in sitioned to address some of the pressing sustainable economic development. That fulfilling national ambitions of sustained needs of business communities. Issues of role stems from their ability to unite economic growth. During the past sev- corruption and corporate governance the business community around a set of eral decades, private capital flows have remain at the top of the business agenda common issues, identify key problems, replaced government to government
Page - 11 Industrial Option January 2009 | industrialoption.com Featured assistance as a major source of capital crony or relationship market economies, Role of Special Member- in emerging and developing markets, where only a few insider fi rms have and today it can be safely said that the unchecked access to policymakers and ship Organizations in development models that rely on states enjoy favorable rules and treatment, have FPCCI is to provide cham- as the sole providers of income, jobs, also failed to bring sustained economic bers Standard Operating and investment are no longer valid. benefits to markets and countries, as evi- Instead, countries increasingly turn to denced by a string of financial crises that Procedures (SOPs) for the business community as the engine of have exposed the dangers of relationship sustained economic growth and pros- capitalism in the late 1990s. However, Following: perity. Even many of the closed nations among the failures of some countries recognize these trends and seek ways to and economic success of others, one Internal capacity building attract private capital. The question no model has proven to be the most effec- – Before chambers attempt to fulfil their longer asks who will shape and define tive in generating economic growth: the role, they have to build internal capacity economic growth, but rather: how can model of a participatory economic sys- in consultation with special membership one unleash the potential of the private tem. In this model, business participates organizations. The first step of this proc- sector, integrate it into development in the creation and implementation of ess for the chambers is to understand models, and capitalize on its resources? economic policies and does not simply their mission and objectives. The answers to this question lie within react to regulations produced behind the private sector-based theory of eco- closed doors or behave as a puppet in Further, in order to address the needs of nomic growth. the hands of government offcials. their members and advocate effectively on their behalf and contribute to an This theory has brought to the fore- Building Effective Cham- overall policy process in their countries, front many issues that have redefined chambers have to be functional organiza- the way governments, business, and civil bers based on Power tions, which means that they must have society approach development. But the Chambers Model knowledgeable staff, implement good most important contribution, perhaps, governance mechanisms, commit to has been the emphasis placed on the Although the section above illustrates transparent financial practices, and cre- framework of government and business the role of chambers within the national ate a strategic plan with key priorities to relationships. and global economic framework and in address. democratic decision-making, there is an- Emphasizing private sector advocacy, other aspect of chambers’ role that we Access to information – In private sector economic development must consider. In addition to being the order to be effective, chambers have to models have shown that a grassroots ap- drivers of economic change and instru- become a source of information for their proach to reform must be implemented ments of democratic process, chambers members, policymakers, and the rest of before ambitions of sustained economic also need to fulfill their organizational the society in consultation with special growth are realized. In the same way, role by serving the interests of their membership organizations. this economic theory is also giving rise members in an effective manner. to the concept of business leadership Entrenched interests benefit from tight – the ability of the business community Mistakenly, many view these challenges as control over information, yet markets not only to work with government to two separate issues, but the two are part cannot function and regulations cannot address various development concerns of the same equation. They both focus effectively address the real needs of the but also to lead the reform initiatives. on creating effective chambers of com- business community when economic merce that build a better environment information is unavailable or distorted. The business-government relationship for doing business – an environment model has evolved dramatically over the where business (chamber members) is Chambers often have a unique oppor- past several decades, as many countries not overburdened by opaque regula- tunity to become sources of economic have struggled to define their own tions; where it has access to policymak- information because they frequently founding blocks of a prosperous market ers; where there are opportunities to have direct access to it through their economy. Command-style economies, grow, engage in productive activities, members – businesspeople – who keep where business simply responds to gov- and attract investment; and where it can markets running day-to-day and expe- ernment reform initiatives and is barred effectively voice its concerns and offers rience firsthand the ineffciencies and from participating in policymaking, have suggestions. disorganization of the system. proven to be ineffective in creating a viable private sector that can endure fair competition or participate in the global Communication strategy economy. This has been demonstrated – Chambers must have a good communi- by the fall of the Soviet Union and the cations strategy based on SOPs provided state of disarray that rules the remain- by special membership organizations if ing command-style economies. Similarly, they want to attract members, effect
Page - 12 Industrial Option JanuaryJanuary 2009 2009 | industrialoption.com | industrialoption.com Featured economic change, and improve demo- control. which gives those entrepreneurs access cratic process because there is little to policymakers and helps design and benefit in doing work if nobody knows Moreover, it is not just the business implement regulations that allow them about it. A communications strategy communities that seek foreign invest- to become a part of the formal economy. includes not only the development of ment as a source of capital for de- communication tools such as newslet- velopment and growth; policymakers Build private-public part- ters, publications, websites, and policy too increasingly voice their interest in briefs but also identification of the key attracting foreign investment. Chambers nerships in consultation target audience for each of those tools. of commerce are the nexus of this proc- with special membership ess, being in a position to bring together Chambers of commerce, as the voice policymakers and firms and help them organizations – From an overall of business, draw their strength and build a proper environment for attract- policy perspective, chambers help build effectiveness from the fact that ten ing investment. As investors are inter- private-public partnerships to address businesspeople are more effective than ested in the stability and predictability a set of common economic and social one. Similarly, in addressing certain is- of their investments, not just returns on issues. By doing so, chambers not only sues, such as building a political will to capital, chambers can help build busi- help develop private solutions to public create avenues for business participa- ness environments that ensure just that problems, they also strengthen the tion in democratic decision-making, – stability and predictability. democratic process by working together coalitions of several chambers can be with government offcials, not simply more effective than one chamber. More Reduce the size of the responding to their instructions. importantly, such coalitions have success- informal sector in consul- fully been built across different compet- Implementation in con- ing economic sectors to address a set of tation with special mem- common issues. sultation with special bership organizations – Informality is one of the key problems membership organizations Building an effective chamber of com- – Chambers should make sure that the merce is as much about process as it is for the business community and govern- ments in many countries because it is business community actually implements about achieving results. Even the best corporate governance guidelines. Here chambers in the world continue to not uncommon for the size of the infor- mal sector to exceed 50% of the GDP. again a voluntary approach can be suc- improve to become even better at what cessful. Initiatives such as certifi cation they do. Tools to build better chambers For firms locked out of the formal eco- nomic system the costs are numerous programs and corporate governance as member-based organizations should awards can raise the profile of the best not be viewed as an end result, but – they do not have access to many of the available sources of capital, they do not firms and create industry leaders that rather as a stepping stone for further others will follow. success. Competition and innovation lie have the protection of the legal system, they are an easy target for government not only at the heart of markets, but also Lead by example – Chambers them- at the core of chamber development. offcials and inspectors to extort bribes, and they cannot effectively enforce selves should have good governance contracts and thus are forced to operate rules in place in consultation with special Promote foreign direct in small “social network” type markets. membership organizations. Members will welcome good governance rules investment (FDI) – Government However, despite the costs of operat- ing in the informal sector, it is often less within chambers because they have the assistance no longer constitutes the larg- same desire as investors: they want to be est share of capital flows to developing costly than complying with numerous regulations imposed on business – there sure that their investments – member- countries private capital flows do. But ship dues and other resources – are not as the competition for FDI is intensify- are no incentives for entrepreneurs to try and join the formal economy. wasted. Similarly, chambers can deny ing across different regions of the world, membership to firms with bad govern- the business community finds itself Yet, economic costs are not the only ance practices because bad members confronted with the fact that simply can ultimately create a negative image desiring foreign capital and welcoming it burden informal entrepreneurs face. Locked out of the formal economic for the chamber and other members’ is not nearly enough. To attract invest- companies. ment business communities must create system, they also have no avenues for a strong institutional environment in participation in democratic policy design because there is often a large informa- RAD Federation Contributed to this consultation with special membership Article. organizations where financial practices tion gap between policymakers and are transparent, corporate governance informal entrepreneurs. One of the mechanisms are in place, property rights recent trends in the chamber movement are protected, business regulations are in developing countries is represent- clear and fair, and corruption is under ing the interests of the informal sector, Premier Chemicals
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Energy Profile of Pakistan
Disclaimer: This article is taken wholly from, or contains information that was originally published by, the Energy Information Administration. Topic editors and authors for the Encyclopedia of Earth may have edited its content or added new information. The use of information from the Energy Information Administration should not be construed as support for or endorsement by that organization for any new information added by EoE personnel, or for any editing of the original content. Ms. Sabahat Ali (Corporate Law Student, USA)
Pakistan’s economy has recovered from country in 2005. use, amounting to about 50 percent years of sluggishness, caused primarily of total energy consumption. Pakistan to droughts, with growth experienced The devastating earthquake that stuck currently consumes all of its domestic in the agriculture, industry and service Pakistan in October 2005 destroyed lives natural gas production, but without sectors. In fiscal year (FY) 2004/2005 and caused considerable damage to the higher production Pakistan will need to (ending in June), Pakistan achieved gross country’s infrastructure. However, the become a natural gas importer. As a re- domestic product (GDP) growth of 8.4 majority of the damage occurred in rural sult, Pakistan is exploring several pipeline percent and in 2005/2006 the country areas of the country and had minimal and liquefied natural gas (LNG) import had GDP growth of 6.6 percent. High impact on the economy. Furthermore, options to meet the expected growth in inflation (9.1 percent) in 2004/2005 was international aid inflows in the aftermath natural gas demand. Pakistan’s electric- attributed to escalating oil prices, higher of the earthquake have served to bolster ity demand is rising rapidly. According to housing rents and food item shortages. Pakistan’s economy. The United States Pakistani government estimates, generat- In an effort to decrease inflation, the pledged $510 million for rebuilding Pa- ing capacity needs to grow by 50 percent central bank of Pakistan announced that kistani infrastructure, but relief coordi- by 2010 in order to meet expected it would raise interest rates. The strategy nators estimate that Pakistan will need demand. worked, with inflation decreasing to 7.6 billions of dollars and up to ten years to percent by the end of FY 2005/2006. fully rebuild. Pakistan and India decided The International Monetary Fund (IMF), to extend aid to one another after the and the World Bank, both major donor earthquake. They also agreed to continue organizations to Pakistan, have acknowl- confidence building measures, which edged the favorable performance and include the notification of missile testing, progress in Pakistan’s structural reforms, creating new bank branches and increas- but have stressed even greater reform ing the number of airline destinations in in the public institutions and the public both countries. energy sector where progress has been slow. In 2004, the IMF approved a fresh Energy Overview loan of nearly $250 million as part of its overall $1.5 billion aid package to Paki- In recent years, the combination of rising stan. In 2005, the United States began oil consumption and flat oil production the first installments of a $3 billion aid in Pakistan has led to rising oil imports Oil package, which will continue through from Middle East exporters. In addi- 2010. In 2006, the World Bank approved tion, the lack of refining capacity leaves According to Oil and Gas Journal (OGJ), loans of $185 million for various reform Pakistan heavily dependent on petroleum Pakistan had proven oil reserves of 300 and infrastructure projects, in addition product imports. Natural gas accounts million barrels as of January 2006. The to the nearly $850 million loaned to the for the largest share of Pakistan’s energy majority of produced oil comes from
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a total of 29 onshore development wells in Pakistan. BP led the development by drilling ten wells in its Lower Indus Basin acreage, while ODCGL drilled nine wells, with the majority being on its acreage in the Middle Indus Basin. PPL expanded its interests in 2005, by drilling offshore at the Pasni X2 shallow water field. It was the first time a Pakistani oil company had explored offshore.
Licensing Rounds
Historically, Pakistan has held few large licensing rounds, and instead, has con- ducted private negotiations for acre- age between individual companies and the Ministry of Petroleum and Natural proven reserves located in the south- (IOCs) and other domestic firms. Major Resources. In February 2006, Pakistan ern half of the country, with the three IOCs operating in Pakistan include BP opened a rare licensing round offering largest oil-producing fields located in the (UK), Eni (Italy), OMV (Austria), Orient nine onshore and offshore blocks. From Southern Indus Basin. Additional produc- Petroleum Inc. (OPI, Canada), Petronas the blocks offered, the Pakistani govern- ing fields are located in the Middle and (Malaysia) and Tullow (Ireland). ment awarded OGDCL three explora- Upper Indus Basins. Since the late 1980s, tion licenses in the southern Sindh and Ms. Sabahat Ali (Corporate Law Student, USA) Privatization Balochistan provinces. The licenses cover Pakistan has not experienced many new the Tegani, Thal and Than Beg Blocks and oil fields coming online. As a result, oil In response to conditions laid down OGDCL has committed to conducting production has remained fairly flat, at by lenders, such as the International geological surveys and to drilling four around 60,000 barrels per day (bbl/d). Monetary Fund (IMF) and the World exploration wells on the blocks. In June During the first eleven months of 2006, Bank, Pakistan continues to strive for 2006, the government awarded POL an Pakistan produced an average of 58,000 privatization of its state-owned compa- exploration license for the Kirthar Block bbl/d of crude oil. However, Pakistan has nies. For instance, the government has in southern Pakistan. In July 2006, Paki- ambitious plans to increase its current on offer a 51 percent stake in PPL, as stan awarded BP three blocks (U, V, and output to 100,000 bbl/d by 2010. Due well as a 54 percent stake in PSO. PPL W) in the offshore Indus Delta region. to Pakistan’s modest oil production, the owns the Sui fields in Balochistan, as well country is dependent on oil imports as exploration interests in 22 blocks, Downstream to satisfy domestic oil demand. As of while PSO holds a majority share in the November 2006, Pakistan had consumed domestic diesel fuel market with more Pakistan’s net oil imports are projected approximately 350 thousand barrels of than 3,800 retail outlets. In November to rise substantially in coming years as oil and various petroleum products, of 2006, Pakistan plans to have a share issue demand growth outpaces increases in which more than 80 percent was im- from OGDCL for the equivalent of 15 production. Demand for refined petro- ported. The majority of oil imports come percent of the NOCs capitalization. Five leum products also exceeds domestic from the Middle East, with Saudi Arabia percent of the company was previously oil refining capacity, so nearly half of as the lead importer. divested in November 2003 in an initial Pakistani oil imports are refined prod- public offering (IPO). Pakistan hopes to ucts. Pakistan’s largest port is located at Sector Organization reap significant revenues from these pri- Karachi, which serves as the principle vatizations over the next several years. point of entry for oil imports. PSO leads Pakistan’s Ministry of Petroleum and Pakistan’s fuel distribution market, with Natural Resources regulates the coun- Exploration and Production its main storage facilities located at Port try’s oil sector. The Ministry grants oil Mohammed Bin Qasim. concessions by open tender and by BP is the largest oil producer in Pakistan, private negotiation. To encourage oil sec- with production averaging approximately Refining tor investment, the Ministry has offered 30,000 bbl/d. The oil major operates 43 various tax and royalty payment incen- fields and more than 100 wells through- Pakistan has five refineries, with total tives to oil companies. Pakistan’s three out the country. OGCDL is Pakistan’s refining capacity of just under 270,000 largest national oil companies (NOCs), second-largest oil producer, with average bbl/d. The largest of the refineries is the include the Oil and Gas Development production at 25,000 bbl/d. While there Pak-Arab Refinery Complex (PARCO), Corporation Limited (OGDCL), Pakistan is no prospect for Pakistan to reach which became operational in late 2000, Petroleum Limited (PPL) and Pakistan self-sufficiency in oil, the government has with 95,000 bbl/d of refining capacity. State Oil (PSO). All three operate under encouraged private (including foreign) In July 2004, Bosicor Pakistan Limited joint ventures and partnerships with firms to develop domestic production (BPL) began commercial operations various international oil companies capacity. In 2005, NOCs and IOCs drilled at its Mouza Kund plant, near Karachi.
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The 30,000-bbl/d refinery is supplied producer (17 percent of total country’s Iran’s massive natural gas reserves to with shipments of crude oil from Qatar. production) in Pakistan. Additional for- Indian markets across Pakistani terri- The plant allowed Pakistan to become eign operators include BP, Eni, and BHP tory. In August 2006, Iran and Pakistan a supplier of naphtha, which constitutes Billiton. The Pakistani government has extended a previously signed (April 20 percent of the output. The plant enacted numerous policies to encourage 2005) memorandum of understand- produces about 10,000 bbl/d of fuel oil, private sector leadership of natural gas ing (MoU) until 2007. One of the main 6,000 bbl/d of diesel, and 5,500 bbl/d of development, including privatization of concerns for both Pakistan and India naphtha, among other products. PSO state-run businesses, regulation that en- is how much Iran will charge for the has a supply contract to purchase the courages competition and tax incentives natural gas. To help mediate the pricing entire output of BPL’s products for the geared towards increasing exploration issue, the three countries appointed an next 10 years. In June 2006, Kuwait and production. international consultant this past sum- agreed to fund a $1.2 billion oil refinery, mer. Iran has offered to cover 60 percent which would have a planned capacity of Exploration and Production of the construction costs of the pipeline 100,000 bbl/d. The refinery would be and Pakistani officials have stressed their located at Port Qasim in Karachi. Pakistan’s largest natural gas production ability to safeguard the pipeline. Pakistan occurs at the Sui field, which is located could earn about $70 million annually in the Southern Indus Basin. PPL oper- in transit fees from the pipeline. If India ates Sui field, with production averaging decides to forego its part in the pipeline 655 Mmcf/d. Additional producing fields project, Pakistan and Iran have agreed to include Mari (446 Mmcf/d), Sawan (366 work on a bilateral Iran-Pakistan pipeline Mmcf/d), and Bhit (316 Mmcf/d). In 2005, project. BHP Billiton signed a Gas Sales and Pur- chase Agreement (GSPA), in which the A second natural gas import possibility company will supply an additional 150 that has been considered is an eventual million cubic feet per day (Mmcf/d) of link to the Dolphin Project in Qatar. natural gas from its Zamzama field. BHP This plan would supply natural gas from Billiton will complete phase II develop- Qatar’s North Dome field to Pakistan ment of Zamzama in the third quarter of via a sub sea pipeline from Oman. Even 2007. Petronas brought its Rehmat field though Pakistan has signed a prelimi- Natural Gas online in March 2005. The field produces nary agreement to eventually purchase an estimated 30 Mmcf/d, which is sold to natural gas from Qatar, it remains to be According to OGJ, Pakistan had 28 tril- consumers in Pakistan’s southern Sindh seen if further action on the project will lion cubic feet (Tcf) of proven natural province. In the past few years, the coun- be taken. gas reserves in 2006. The bulk of these try discovered seven new natural gas reserves are located in the southern half of Pakistan. In 2004, Pakistan produced and consumed 968 billion cubic feet (Bcf). In light of the current onshore ex- ploration activities and resource outlook, the Pakistani government expects minor increases in natural gas production in the short-term. However, natural gas production is expected to decline over the next 15-25 year period, while natural gas demand is expected to increase. The Pakistani government is currently developing plans to import additional natural gas (see “Proposed Pipelines” below) in order to satisfy increasing de- mand. According to the Pakistan Energy Yearbook, natural gas is currently the country’s largest energy source, making up 50 percent of Pakistan’s energy mix in FY 2004/2005. fields. The Pakistani government expects A third natural gas pipeline option the development of these new fields to that has been discussed is a line from Sector Organization add an additional 1 Bcf/d to Pakistan’s Turkmenistan to Pakistan via Afghanistan. natural gas production. Pakistan faces various hurdles with this Pakistan’s state-owned PPL and OGDCL option, which include the security situa- produce around 30 percent and 25 Proposed Pipelines tion in Afghanistan and the price Turk- percent, respectively, of the country’s menistan would charge for the natural natural gas. The two companies are the Pakistan’s government is working on gas. In addition, completed feasibility country’s largest natural gas producers. plans to build a pipeline that spans from studies on the project, funded by the OMV is the largest foreign natural gas Page - 16 Industrial Option January 2009 | industrialoption.com
Asian Development Bank (ADB), indicate Sector Organization that the Turkmenistan field of Daulatabad will only be able to supply a portion of The electric power sector in Pakistan the natural gas needed by Pakistan. is operated by the Water and Power Development Authority (WAPDA), and Liquefied Natural Gas (LNG) the Karachi Electricity Supply Corpora- tion (KESC), with additional generation In addition to natural gas import contribution from Independent (private) pipelines, Pakistan is pursuing liquefied Power Producers (IPPs). WAPDA is natural gas (LNG) import options to responsible for supplying power to all of meet energy needs. In October 2006, Pakistan, with the exception of Karachi, United Arab Emirates-based Dana Gas which is supplied by KESC. Currently, and its partners, Single Buoy Moorings 15 IPPs operate in Pakistan under a and the Granada Group signed a MoU Electricity Build-Own-Operate (BOO) basis. The to build an LNG import facility, with 3.5 National Electric Power Regulatory million tons per year capacity. The facility Pakistan had 20.4 gigawatts (GW) of Authority (NEPRA) regulates the power would be completed in 2010 and would installed electric generating capacity in sector in Pakistan, which includes power be located at Port Qasim, near Karachi. 2004. Conventional thermal plants using generation, transmission and distribution. oil, natural gas, and coal account for NEPRA is also responsible for determin- about 66 percent of Pakistan’s capac- ing electricity rates in Pakistan. ity, with hydroelectricity making up 32 percent and nuclear 2 percent. The Disputes over rate adjustments are com- Pakistani government estimates that by mon within the industry. For example, 2010, Pakistan will have to increase its in July 2004, NEPRA announced that generating capacity by more than 50 per- electricity rates would be lowered for cent to meet increasing demand. In 2004, domestic, industrial and agricultural Pakistan generated 80.2 billion kilowatt- customers in the three distribution areas hours (Bkwh) of electricity while con- of Hyderabad, Peshawar, and Quetta. suming 74.6 Bkwh. Pakistan’s total power The affected distribution companies generating capacity has increased rapidly complained that, due to lower rates, they in recent years, due largely to foreign would be unable to cover their operat- investment, leading to a partial alleviation ing costs. NEPRA advised the federal Coal of the power shortages Pakistan often government to subsidize the providers at faces in peak seasons. However, much a cost of around $24 million. WAPDA is Coal currently plays a minor role in of Pakistan’s rural areas do not have at the center of a public sector “circular Pakistan’s energy mix, although the access to electric power and about half debt” problem, in which state firms and country contains an estimated 3,362 the population is not connected to the government ministries have failed to pay million short tons (Mmst) of proven national grid. Rotating blackouts (“load power bills, while WAPDA has failed to recoverable reserves. Pakistan produces shedding”) are also necessary in some meet obligations to them and to private small amounts of coal, 3.5 Mmst in 2004, areas. In addition, transmission losses are sector creditors, especially state-owned and imports additional coal, 1.7 Mmst about 30 percent, due to poor quality PSO. in 2004, to satisfy demand. Recently, the infrastructure and a significant amount of discovery of low-ash, low-sulfur lignite power theft. coal reserves in the Tharparkar (Thar) Desert in Sindh province, estimated at 1,929 Mmst, has increased both domes- tic and foreign development interest. China, which began developing various electric power plants in tandem with the coal mines in 1994 in Pakistan, has shown the most interest in the Thar region. However, several factors have hindered development of the Thar coal reserves, including the depth and moisture level of the lignite reserves, a scarcity of fresh water, and lack of road and power infrastructure.
Page - 17 Industrial Option January 2009 | industrialoption.com Privatization project. Eden Enterprises, along with Board (AEDB). AEDB’s primary objec- Pakistani partners own 95 percent of tive is to help Pakistan achieve a 10 The Pakistani government continues to S.K. Hydro, which was given a 35-50 percent renewable energy share in the seek reform in the state-held electric year concession period for the power country’s energy mix. AEDB is working companies. In November 2005, the Pri- plant. Construction is expected to begin to create an environment in Pakistan vatization Commission in Pakistan sold in 2009, with the plant coming online in that is conducive to investment from KESC to Hassan Associates, a group of 2011. The Private Power and Infrastruc- the private sector in renewable energy. local and Saudi investors. KESC con- ture Board (PPIB) is currently reviewing In July 2006, Turkish-based Zorlu Energji trols a power transmission network in six additional hydropower projects for Grubu signed a letter of intent to install the southern part of Karachi. Because the Swat River. If approved, the projects a 50-MW wind farm. Zorlu would oper- KESC has struggled to make a profit, would provide several hundred MW of ate the wind farm for 20 years once the Pakistani government has supported additional hydroelectric power capacity the project is completed in 2008. Zorlu the company with a $200 million an- to the country. has indicated that it would like to install nual subsidy. But, Hassan Associates has an additional 2,000 MW of renewable indicated that they are confident in their energy capacity in Pakistan by 2015. ability to make a profit from KESC in the future. The Pakistani government will maintain a 26 percent share of the company. Plans have also been made to transform WAPDA into three generation companies, eight distribution companies and a transmission entity with the hope of seeing it privatized.
Thermal Power Nuclear WAPDA operates the majority of ther- mal power plants in Pakistan, with over Pakistan has one nuclear power plant, 5,000 MW of installed capacity in its Chashma-1, with 300 MW of installed control. The Guddu plant is the largest capacity. The Pakistan Atomic Energy plant operated by WAPDA, with a capac- Commission operates the nuclear plant. ity of 1,650 MW. In recent years, growth Pakistan is currently working on second in Pakistan’s thermal power generation nuclear power plant (Chashma-2), with Hydroelectric has come primarily from new independ- the help of China National Nuclear ent power producers (IPPs), some of Corporation. The plant will have 325 Hydroelectric power represents a third which have been funded by foreign inves- MW of installed capacity and could be of Pakistan’s power source, however, tors. The two largest IPPs in Pakistan completed by 2009. periodic droughts affect the availability are Kot Addu (1,600 MW) and Hubb of hydropower production. WAPDA con- River (1,300 MW), both of which supply Environmental Issues trols the country’s major hydroelectric power to WAPDA. The Kot Addu plant plants, with the largest being the Tabela was privatized in 1996 (from WAPDA). In Pakistani cities, widespread consump- plant at 3,046 megawatts (MW) installed International Power holds a 36 percent tion of low-quality fuel, combined with capacity. The Tabela plant was the largest equity stake in the Kot Addu plant. The a dramatic expansion in the number of hydroelectric plant in Asia until China Pakistani government has recognized vehicles on the roads, has led to signifi- began building the Three Gorges project, that the majority of thermal plants in the cant air pollution problems. Lead and which will have 18,000 MW of installed country are run on fuel oil and produce carbon emissions are major air pollut- capacity. Additional hydroelectric plants considerable amounts of pollution. In an ants in urban centers such as Karachi, in operation include Mangla (1,000 MW), effort to reduce pollution, the govern- Lahore, and Islamabad. A lack of energy Warsak (240 MW), and Chashma (184 ment would like to see fuel oil-power efficiency standards has contributed to MW). plants converted to natural gas in the Pakistan’s high carbon dioxide intensity. future. One hopeful trend is that Pakistan has Although Pakistan has plans to develop increasingly been using compressed Other Renewables additional hydroelectric generating ca- natural gas (CNG) to fuel vehicles. Cur- pacity, infrastructure constraints, such as rently, government vehicles and taxis that access roads in mountainous regions and Pakistan is working to expand the use of have been using liquefied petroleum gas resettlement costs of affected popula- renewable energy to help bridge the gap (LPG) are being converted to CNG. tions have stalled progress. Nevertheless, of energy deficiency in the country. In Eden Enterprises is going ahead with 2003, the Pakistani government created its Suki Kinari (655 MW) hydropower the Alternative Energy Development
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World leaders condemn Israel
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Page - 19 Industrial Option January 2009 | industrialoption.com Pakistan’s energy crisis: short and long-term solutions By: M. Sharif to an estimate the country has enough per cent to 71 per cent during the same resources to generate approximately period. Needs of most of the commer- Pakistan is in the grip of a serious energy 40000 mw of hydro-electricity. However, cially used oil are met by imports whose crisis that is affecting all sectors of the presently it only generates 8000 mw of prices have skyrocketed during past five economy and the various segments of electricity against an installed capacity years and as such the cost of power the society. As the situation stands to- of 11327 mw. In addition the country generation through oil has increased. day, there are hardly any immediate solu- can generate electricity with the help of tions to resolve the issue. A change of at- wind and solar energy which has not yet Power consumption because of in- creasing needs of industry, agriculture None of the previous rulers of and households has been on the rise. According to an estimate, between the period of 1990 and 2003 the total con- the country solved the issue due sumption increased by 84 per cent, from 31twh to 57twh. Presently, an annual to which the energy crisis kept average increase of 7 per cent has been postulated. The energy sector, in which the government has a greater role to on increasing regularly. play, will have to work hard to make up for the existing deficit and to meet the titude and a change of life style is needed been exploited to meet the energy defi- growing demand. at the national level which should be cit. Nuclear energy is yet another source triggered by the ruling elite and followed of energy and at present PAEC produces by all segments of the society that have 472 mw. It is far less than what PAEC The reason behind access to electricity. At best there could should have been producing to meet the be some short and long-term solutions energy deficit. the crisis to the crisis but they need immediate planning and execution with an enor- Three major electricity generation agen- An important question in the midst of mous investment. None of the previous cies presently operate in the country. ongoing power shortage crisis, be- rulers of the country solved the issue They have a total installed capacity of ing raised is that why the energy crisis due to which the energy crisis kept on around 19522 mw. Their installed capaci- looms on our head after an interval of increasing regularly. ties are as follows: WAPADA: 11327 mw; around 10-15 years despite the fact that KESC: 1756 mw and Independent Power statistics about energy resources, de- State of energy re- Producers (IPPs), 5977 mw. PAEC pro- mand and consumption are well articu- duces 472 mw as stated earlier. Thermal lated. They are also readily available to power accounts for 64 per cent of the planning commission and other federal sources total installed capacity, hydro-electricity and provincial governments. The answer accounts for 33 per cent and nuclear is simple; poor management, lopsided Pakistan has a deficit of fossils or hydro- power plants account for 3 per cent. priorities and lack of accountability on carbons sources of energy and to cover Thermal power is mostly produced by part of those who stay at the helm of up the deficit, it depends upon import- burning either natural gas or imported affairs. ing crude oil at an enormous cost from oil. The country is yet to switch over its meager forex reserves. The need of to coal from the indigenous source of In the early 90s, the power crisis had crude oil is on an increase because of energy that is estimated to be the third started emerging and the political gov- an improved life style which has neces- largest in the world with a reserve of ernment that was mandated to govern sitated the use of vehicles and cars for 33.0 trillion tons. the country was faced with the issue transportation. Import of oil at around of power crisis. The government had $110 per barrel, increases the trade The Energy market has been changing to resolve the crisis by engaging almost deficit and the current account deficit. It according to the demands of power 19 Independent Power Producers (IPP). makes fiscal management a difficult task consumption. The Prices of energy raw 19 IPP projects were initiated with an which affects the government as well as materials also kept changing. According installed capacity of 3158 mw and invest- the people. to an analysis, in the fiscal year 1990-91 ment of $4.0 billion and by March 2003 hydropower accounted for 45 per cent the installed capacity was at 2728 mw Contrary to the deficit of fossils or of all electricity produced in the country that has reached to 5977 mw through hydrocarbon resources, Pakistan is rich but it was reduced to 26 per cent with expansion. Till 2005, supply of electricity in hydro resources of energy. According a 10-year period. The share of thermally produced through different power gen- generated electricity increased from 54
Page - 20 Industrial Option January 2009 | industrialoption.com erating units was surplus to demand by eas close to or within large cities such as long way in addressing the energy crisis around 450 mw but since then demand Karachi, Lahore and other comparatively immediately without any additional cost. has been outstripping supply because smaller cities. Industrial units are not en- there was practically no additional ergy efficient and management practices power generation. also need improvement to make efficient Measures by the gov- use of electricity. A study carried out The government did not anticipate that by the ENERCON reveals that efficient ernment there would be an increase in demand use of electricity by the industrial sector of electricity and it was its responsibility could save up to 23 per cent of electric- The outgoing government had belatedly to arrange the supply according to the ity. The focus on energy conservation is addressed the power crisis by hyping up demand. Consequently, during summer, on the improvement of steam distribu- the construction of mega hydro-electric 2007, supply of electricity ran short of tion systems, air conditioning, refrigera- dams including politically controversial 2500 mw. It is being anticipated that tion and modernising and revamping Kalabagh dam without going into details this year the deficit between supply and energy efficient combustion processes about their feasibility and sources of demand could be as high as 3000 mw. By and controls. investment. The new government has a the end of year 2010, the deficit could be real big challenge of addressing the ener- as large as 5500 mw. There are no imme- The transport sector is the second larg- gy crisis at hand. Its first priority should diate solutions to generating additional est consumer of energy. According to an be to implement immediate measures power through any source because a ENERCON study, this sector consumes that might bring some relief to the unit takes at least 2-3years to establish 28 per cent of total national consump- public. It should also immediately embark properly. More than 5 years is required tion of energy. This could be reduced by upon the programmme of expansion of to construct a hydroelectric dam and 10 per cent if car owners alone were to generating capacities that has been laid the investment is enormous. This crisis economise on consumption of fuel and down by the previous government under has literally paralysed the construction kept their car engines fully tuned up. The “Vision 2025” programme. industry, badly affected agriculture and sector has the potential to be 20 per made life hell for the citizens. In view of cent energy-efficient if railways, shipping It envisions increasing existing power existing ground realities and constraints and aviation are included. One of the vis- generating capacity by 10000 mw by to address power crisis by generating ible constraints that keeps the industrial 2010 and around 35000 mw by 2025 at electricity within a short span of a few and transport sector away from being an enormous cost of $35 billion to be months, the need to make the best use energy-efficient is the lack of observing shared by the government and private of existing power generation by taking energy conservation rules and regula- sector. The share of different sources conservation measures at individual, tions which are already laid down by the of energy is stipulated to be as follows: community and national level are essen- government. Their focus is perhaps on hydro-electricity: 22563 mw, new gas tial. These measures if implemented with short-term gains that run contrary to fired plants: 4680 mw, coal fired plants: commitment and honesty of purpose national interest. 4350 mw, nuclear plants: 1800 mw and can help a lot of people to over come finally 1500 mw from renewable energy negative implications of power crisis. The third largest consumer of electricity resources. It is certainly an ambitious is domestic/household sector that con- plan that needs to be implemented on sumes around 21 per cent of electricity priority basis with changes that the new produced in the country. According to a government might like to make within its Energy conservation study this sector could be efficient by 30 national policy framework. measures per cent by avoiding wasteful habits of consuming energy such as keeping mar- Conclusion Energy conservation or efficient use kets fully lit etc. A positive development of electricity is what is needed at this that has so far taken place in this sector It hardly needs to be emphasised that crucial time. There are three major users is gradual shifting over to use of energy electricity is the lifeline of national of electricity and they need to be edu- savers. Similarly energy could be saved economy and the people at large. The cated and motivated to play their role in by minimum use of air conditioners. The Economy and public life practically come energy conservation. The three stake- entire household should be well-aware to a halt because of the load shedding. holders are: industrial sector, transport of energy consumption. The existing crisis can be addressed sector and domestic/household sector. by the government by taking prompt Each sector needs to be dealt separately To achieve meaningful results about measures. There is hardly any room for to high light the efficacy of conserving conservation of energy the charity neglect or delay. energy. should start from home, that is, the ruling elite should take the initiative The Industrial sector is consuming the and set example to conserve energy as largest amount of energy in the country. a national imperative for emulation by It consumes around 45 per cent of the other segments of the society. If conser- total commercial energy. Most of them vation measures stated above were to are concentrated in a few industrial ar- be implemented partially, it would go a UBC Convertec (Pvt.) Ltd.
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Chamaber Mission 200 “In 200, we pledge to undertake initiatives encompassing Database and Information Sharing, Accept- ing right of everyone on quality and competency basis without prejudice, restore investor confidence within country and help building interest for new coming investors, build- ing healthy industrial and business environment and identify failure and weaknesses in government polices”
From Left: Amjad Nazir Butt, VP, Manzoor Ul Haq Malik President, Tariq Iqbal Mughal, VP
Elected Office Bearers Sheikhupura Chamber of Commerce & Industry for the period of 2008-2009 Executive Members
NO Associate Class Corporate Class 1 Sheikh Abdul Hafeez Ali Abbas M/s S. Abdul Ghafoor & Sons Sheikhupura Mandiali Paper Mill Pvt. Ltd.
2 Imtiaz Ashraf Aulakh Muhammad Saeed Aulakh Commission Shop Sheikhupura Premier Paper Mills Ltd.
3 Muhammad Ramzan Ch. Zahid Hafeez Hassan Board Industries GT Road Kala Shah Kaku Zahid Hafeez & Brothers
4 Haji Muhammad Ilyas Faraz Ahmad Malik Farooq Abad Malik Board & Paper Pvt. Ltd.
5 Haji Muhammad Ramzan Muhammad Shoaib Al-Hamd Cloth House Sheikhupura Al-Munawar PVC Pvt. Ltd.
6 Ch. Nadeem Safdar A.R Khan Model Soap Factory, Sheikhupura Super Theramics
7 Sohail Iqbal Mian Haseeb Haroon M. Iqbal Hussain & Company Sheikhupura AHN Steels Pvt. Ltd.
8 Ch. Tahir Majeed Mian Mohammad Sana Ullah Salman Ch. Tahior Majeed & Co. Sheikhupura Ajmair Traders (National Pipe).
9 Malik Mushtaq Ahmad Sammi Farooq Sky Interbnational, Muridkay Jammal PVC pvt ltd.
10 Haji Abdul Kareem Khuram Javed Mughal Ch. Muhammad Baqar Khan & Company, Jhabran. Al-Bashir Steel Mills Pvt. Ltd.
Page - 22 Industrial Option January 2009 | industrialoption.com Standing Committees of the Sheikhupura Chamber of Commerce & Industry for the period of 2008-09
No. Name Standing Committee Company Name
1 Mohammad Tariq Iqbal Mughal Achievement Award Mughal Steel Mill Pvt Ltd 2 Ch Mohammad Arif Agri and Pesticide Ch Stone Crushing 3 Amjad Nazir Butt Agro & Food Process Al Madina Trading Co Skp 4 Mehmood Sami Petroleum Sami Sons 5 Ch. Nadeem Safdar Soap and Detergents Model Soap Factory 6 Rab Nawaz Dyes and Chemicals Ahmad Jannat Enteprises 7 Sabir Pervaiz Miller Industry Seena Grinding 8 A.R.Khan Customs & Import Super Thermax 9 Shahid Saeed Pasha Chemical Processing Premier Chemical 10 Haji Maqsood Gems & Jewelry Maqsood Jewelers 11 Malik Manzoor Industrial Services Industrial Option 12 Sheikh Naveed Anwar Stainless Steel Industry AHN Steel 13 Muzaffar Ahmad Board Industry Malik Board & Paper Mill 14 Haseeb Haroon Collides AHN Collides 15 Mohammad Saleem Butt Pharmaceutical Ameer Pharama 16 Amir Bakhat Azam Cable Industry New Age Cables 17 Tariq Iqbal Mughal Trade Delegation Mughal Steel Mill Pvt Ltd 18 Mian Farooq Ahmad Pipe Industry Jamal Pipe Industry 19 Ms Qaisra Zulfiqar Women Entrepreneur Al Aziz Paper Mill 20 Mian Muhammad Sanaullah WAPDA Dispute Resolution National Pipe 21 M. Waseem Asharaf Rice Export Waseem Traders 22 Sheikh Abdul Hafeez District Government S. Abdul Ghafoor & Sons 23 Imtiaz Asharaf Aulakh Social Welfare Aulakh Commission Shop 24 Syed Abid Shah Education Philanthropist 25 Ali Abbas Chemical Yarn RN Rayon 26 Mohammad Rashid Open end Industry Model Spinning 27 Lala Abdul Waheed Health Usman Traders 28 Khalid Zaman Toor Rice Research Crystal International 29 Malik Mohammad Yusaf Sales Tax InterPack 30 Shehzad Ali Nagina R & D / NGOs Mandiali Paper Mill 31 Abid Mehmood Butt Building H.M. builders 32 Amir Bakhat Azam Environment New Age Cables 33 Ch Mohammad Arif Law & Order Ch Stone Crushing 34 Amjad Nazir Butt Chamber News Al Madina Trading Co 35 Suhail Iqbal Mian Membership Growth Muhammad Iqbal Hussain & Brothers 36 Manzoor Ul Haq Malik Liaison Industrial Option 37 Kamran Khan Pulp & Paper Flying Paper Mill 38 Ch. Mohammad Sadiq Business Dispute Resolving Insha Industries 39 Khalid Taj Sui Gas+ CNG Taj International 40 Mian Shahabul Khan Court Matters Qadria Board 41 Malik Mudassar Public Relation Falcon Packages 42 Khawaja Tariq Packaging( Tin Corrugation ) Ayub Packages 43 Aamir Match Industry Fazal Match Industry 44 Muhammad Younas Shoe Industry Rightway International 45 Adil Mehmood Textile Industry Adil Textile Pvt. Ltd. 46 Zafar Iqbal Industrial Department Khalifa Papers Note: Co-Chairmen & Members to be announced soon.
Jamal Pipe Industries (Pvt.) Ltd.
Page - 23 Industrial Option January 2009 | industrialoption.com
Global Food Crisis: A Bowl of Opportunities for Muslim World By: Rafi-uddin Shikoh & Shuriah Niazi (http://www. dinarstandard.com, An American Economic Think-Tank)
While developed countries are world’s top producer of buffalo/goat revenue windfalls have eased the impact directing their attention to the tur- milk (#2/#4), buffalo/ goat meat (#2), of the food crisis in these countries. As moil in the financial sector - far less chick-peas (#2), and sugar cane (#5); these Gulf and other oil rich Muslim attention is being paid to the global Bangladesh is a leading producer of rice economies look to invest their revenue food price crisis--- a crisis that is (#4), jute (#2), goat milk/meat (#2, #4); windfall towards domestic infrastructure having a more immediate and life and Indonesia is a leading producer of and industrial rehauling-the agricultur- threatening impact on the global coconuts (#1), green beans (#2), tropi- ally endowed, yet poorer Muslim world masses. cal fruits (#2), eggs (#3), and rice (#3) economies provide a unique investment
According to a recent report from Oxfam, a global non-governmental organizations working to fight poverty, prices of staple foods have seen in- creases ranging from 30 per cent to 150 per cent in 2007 and 2008. The impact of which, according to the World Bank, has increased the number of malnourished people worldwide by 119 million in 2007 and 2008 bringing the total to nearly one billion people (967 million) worldwide.
From Egypt, Indonesia, Bangladesh, and Sudan, to Pakistan--many Muslim majority countries are facing some of the worst pains of this global crisis. For example, Oxfam’s recent report, “Food Crisis in Pakistan: Real or Artificial”, says the number of poor in the country has risen from 60 to 77 million since 2007 because of food inflation. Infact food related riots have been seen in many of in addition to many other agricultural opportunity for them. these countries. Ironically, it’s these same products. economies which are some of the most This analysis looks at how the oil-rich agriculturally endowed in the world. Conversely, the oil-rich Muslim majority Muslim economies could leverage their states of the Arabian Gulf have become existing relationships with agriculture According to the UN’s Food & Agri- the biggest beneficiaries of the other glo- based Muslim economies (which have a cultural Organization, Pakistan is the bal crisis - the energy shortage. Record wide productivity gap with the worlds
Page - 24 Industrial Option January 2009 | industrialoption.com net agriculture exporters) taking them Indian economic analyst. An Opportunity to Lead to globally competitive levels; reaping for themselves high investment returns, The objective of this article is not to While these are some of the poorest securing their own food sources, and analyze the reasons of the crisis, since economies in the world,they stand to contributing to alleviation of the food broadly it all boils down to supply and crisis from other Muslim countries. demand disparities. Rather, our focus is to concentrate on the unique opportuni- The Impact and Drivers ties in the market.
We are all feeling the pinch from rising The Muslim World - Agriculture Cen- food prices. For us-the fortunate ones - tered but Food Poor who can afford internet access and read magazines-- the food crisis may translate Many of the 57 OIC (Organization of into eating out less, or cutting down on Islamic Conference) member countries buying expensive groceries. However, for are agriculture centered economies approximately 2.7 billion of the world’s producing a major portion of the world’s population who spend 80% of their food commodities. As shown in the table income on food (source: Oxfam)-this is below--Indonesia, Pakistan, Turkey, Iran, serious. In Pakistan, the poorest one-fifth and Egypt have the biggest agriculture DinarStandard.com Analysis based on World Bank - of the country’s population spends 50 to outputs within the Muslim world (by World Development Indicator 2007, CIA World 58 per cent of its income on buying ce- GDP - PPP contribution.) Fact Book data real foods alone. The skyrocketing wheat prices, therefore, becomes a matter of benefit greatly from a growing demand life and death for the extremely poor. for food. In Indonesia, according to Oxfam, the price rises have offered a This dramatic spike in food prices has huge opportunity for palm oil exports: been attributed to various complex and these increased by 55 per cent in 2007, interlocking reasons. Growing global making palm oil the country’s biggest demand (particularly from large, emerg- revenue-generating export, surpassing ing economies such as China and India), even copper, coal, oil, and gas. At the unfair world trade rules, skimpy wheat same time, Indonesia being a beneficiary harvests, speculation in the commodi- of the booming bio fuels sector is expe- ties market, increased use of farmland riencing a soaring price of local cooking to produce bio fuels (to offset high fuel oil, making everyday life very difficult for prices), years of neglect in investing in Data Source: World Bank - World Devel- its people. agricultural sectors, and climate change opment Indicator 2007 are all playing a part. A key aspect of the opportunity here Most of these top agricultural based is the low agricultural productivity of The global push for bio fuel crops, which economies are also some of the poorest these economies that forms the basis then take food crops out of production, and hardest hit by the food crisis. Within of the potential. When compared to the is playing a significant role in raising pric- the ten major agricultural Muslim world global leaders in agricultural exports, es. World Bank analysts have estimated economies, Bangladesh, Sudan, Nigeria, the agricultural productivity of Muslim that bio fuel production has accounted Pakistan and Indonesia have the lowest majority agricultural economies lags far for 65 percent in the rise of world food GDP Per capita (PPP.) behind. Amongst the largest 10 agricul- prices, while the International Monetary tural economies Egypt, Bangladesh and Fund (IMF) has concluded that bio fuel production is responsible for a significant part of the jump in commodity prices.
Another significant contributor is the growing global demand for products like meat and grain, and a corresponding lack of supply. Years of under-investment in agriculture in poorer countries, and un- fair trade rules and farming policies that benefit rich countries, also contribute to this negative impact.
“The real matter to my mind is grow- ing consumption - whether it is food or energy. We need to cut down wasteful consumption,” said B.G. Vergese, a noted
Page - 25 Industrial Option January 2009 | industrialoption.com Pakistan are the most productive when food reserves. Fund that will collectively invest in food production measured by the $ Agricultural output/ in nearby countries for the Gulf market. MAP will also develop 10 model dairy and livestock farms square km, whereas Sudan, Nigeria, Alge- This has compelled the Kuwait Govern- in Pakistan through private equity, small enterprise ria and Turkey are the least productive. ment to launch several initiatives such as development and donor facilitation in 2008–10. Kuwait’s “decent living” fund. The Amir * On 7 September 2008, Kuwait’s Minister of The low value productivity has been of Kuwait has donated $ 100 million to Finance signed what his Sudanese counterpart called a “giant” strategic partnership deal with the attributed by various agencies to under- establish the fund for “decent living” in government in Khartoum. Under the agreement, investment in the agricultural sector, gov- Muslim countries, and another $ 300 mil- the two will invest jointly in food production, ernment mismanagement, and not being lion to the Islamic Development Bank’s presumably in Sudan, including cattle. able to attune the agricultural practices (IDB) Poverty Fund. * The Qatar Company for Meat and Livestock Trading Mawashi has established a sheep farm in to the developing world. western Sudan and has signed a memorandum of Meanwhile, the Islamic Development understanding with the country for further expan- Thus the number one opportunity is for Bank (IDB) has also pledged USD 1.5 bil- sion in livestock farming. It also has bilateral agree- these very countries’ public and private lion toward addressing the food crisis in ments with two Tajik livestock companies. Qatar Livestock Mawashi has also committed US$1bn to sectors to commit to agricultural devel- its poorest member countries. The pack- develop industrial livestock farms in Pakistan. opment and lead the world in fulfilling age, known as the Jeddah Declaration, * In August 2008, the BinLaden Group signed an global food demand. will be disbursed over a 5-year period agreement to invest at least US$4.3bn, on behalf and will include short, medium, and long- of a consortium of 15 Saudi investors known as the Middle East Foodstuff Consortium, to develop Another unique aspect of this oppor- term programs to deal with the crisis. 500,000 ha of riceland in Indonesia. tunity is the role of the Oil-rich Muslim * Hail Agricultural Development Company majority countries. The most affluent Faced with a scarcity of fertile land, (HADCO), a Saudi agribusiness firm, has leased Muslim majority countries (based on water shortages and surging world food 25,000 acres (10,117 ha) for US$95m north of Khartoum to produce food and feed for export to GDP per capita) are almost all the oil prices, the GCC states are seeking to Saudi Arabia. producing nations of the GCC (Gulf secure their food supplies by investing in * Abraaj Capital, a private equity firm manag- Cooperation Council) that have ben- agriculture abroad. Saudi Arabia and the ing US$5bn of assets, has, together with the UAE efited from the cash windfall of world oil United Arab Emirates, the top food im- government, reportedly acquired some 800,000 acres (about 324,000 ha) of supposedly “barren” dependent energy needs. porters among GCC countries, are now farmland in Pakistan over the last year to produce looking to Asia and Africa as opportuni- rice and wheat for export to UAE. The total population of the six members ties for agricultural investments. of the Gulf Cooperation Council (GCC) Envisioning a food market to the - Bahrain, Kuwait, Oman, Qatar, Saudi On the private sector side, it seems that world Arabia and the UAE - rose from around many GCC companies are looking at 30 million in 2000 to more than 35 mil- establishing agricultural ventures in other There are certainly many, many chal- lion in 2006. GCC food imports cost 10 nearby countries. lenges in improving the productivity of billion dollars in 2007 where Saudi Ara- the agriculturally endowed Muslim world bia, with a population of about 24 million, One reported UAE project to develop economies. Ineffective management of remains the largest food importer. As the more than 70,000 acres (28,328 hec- water resources, soil fertility; in effective table above shows, the GCC countries tares) of arable land in Sudan is in line access to markets, credit and input; and that are looking to diversify their invest- with this strategy. Being Africa’s largest lack of R&D are all known hurdles. ments can contribute and benefit greatly country, it has abundant water resources by investing in the great agricultural including the Nile River, the world’s long- However, given the already existing sector potential of the Muslim world est river. However, Sudanese agriculture strong relationship of the GCC coun- economies. This also will help them remains massively underdeveloped, tries with agriculturally endowed Muslim secure their own food supply needs. although it employs 80 percent of the world economies and the investment workforce, with much of the population pool available, the GCC countries can Emerging Private Sector Invest- reliant on subsistence agriculture. play a leadership / innovative role. With ments & Government Initiatives a coordinated investment strategy they Egypt and Pakistan have also been target- could support government driven infra- There are certainly indications that the ed by Saudi Arabia and the UAE for food structure initiatives as well as investing in Muslim world is taking some actions to projects. individual farming practices resulting in tap into the above stated potential. securing their own food supplies as well Some recent transactions/ initiatives are as investment returns. At the Government level, recently, the as follows (Source: http://www.grain. 57 nations of the Organization of the org/go/landgrab): In many ways this type of leadership is Islamic Conference have come together akin to Dubai’s very impressive approach to cooperate on increasing food produc- * In August 2008, three Gulf firms -- Abu Dhabi to becoming the new world tourism Investment House, Ithmaar Bank and Gulf Finance tion. Kuwait’s Deputy Prime Minister destination which the rest are following. Sheikh Dr Mohammad Sabah Al-Salem House – announced the creation of AgriCapital, a new Islamic investment fund. The US$1bn invest- Perhaps a spirited human impacting vi- Al-Sabah has recently said that Muslim ment vehicle will engage in land purchases overseas sion could also enable it to establish the countries were the most gravely affected to produce food for the region. Muslim world as the leading food basket * MAP (Market Access Promotion) Services by developmental challenges, namely glo- to the world. bal inflation and shortages in the world’s Group, an international investment firm, has joined other Gulf partners to form a Middle East Food
Page - 26 Industrial Option January 2009 | industrialoption.com Student’s Corner Why Should I get Education? The purpose of education is dependent on the form of the family and so- ciety, and the historical context and place an individual is raised within. By: Muzayyan Manzoor come to them from outside themselves. happiness is the terminology of secular Student FC College education; within religious education, this Due to this inherent dignity and as the is called the formation of the soul, both The purpose of education is dependent individual source of political authority, types of education are prevalent in our on the form of the family and society, learning self-control is vital to educa- society. To develop character means to and the historical context and place an tional success. Students develop self-con- refine our coarse emotional states and individual is raised within. The current trol through learning to obey authority base desires into civilized and tasteful context is one of rapid economic glo- that they accept as legitimate. If students emotional states and higher desires. It balization oriented towards knowledge- never learn to obey others, they can also means to seek the truth, in commu- based industries aimed at increasing hardly learn to obey their own inter- nity with others, sharing common mean- human longevity and enhancing human nal restraints; they will have recurring ings within a clear and practical language, capabilities. trouble resisting harmful vices or issuing doing good oneself and promoting good orders while leaving people’s dignity in the larger spheres of local autonomy. This form of society recognizes the intact. They will, therefore, have difficulty individual as being the source of legiti- achieving happiness or justice. Parents Once these basics of education have mate authority and responsible for both and teachers are obeyed because they been mastered, the student has the self-conduct and the preservation of the possess superior knowledge that stu- conceptual tools necessary to go deeper society. Such a society is constituted of into any single fundamental realm or into ever-expanding spheres of local au- interdisciplinary areas between realms. tonomy, beginning with the individual and Teachers guide students into studies of proceeding outward through the family works proven to have permanent worth. and voluntary associations, followed by A student might choose to learn more city, county, regional, national and global between the realms of meaning and political jurisdictions. The importance of purpose, such as law or anthropology, each sphere of local autonomy is directly or between the realms of purpose and proportional to the closeness to the truth, such as medicine or engineer- individual, who holds ultimate respon- ing, or between the realms of truth and sibility, through their representatives, meaning, such as economics or business. for the consequences of the exercise of delegated authority and power. The most The most general learning, relying equally important sphere of local autonomy is on the tripod of the basic curriculum the individual and the immediate family within all three realms, is in the areas of and the least important are global juris- history, philosophy, politics and religious dictions. thought. This is the knowledge all individ- uals within representative democracies Individuals within our form of society should attempt to achieve, at least to the have a dignity that cannot be taken degree that informed decisions are pos- away from them by any power on earth sible. Representatives themselves require because of their unique moral capacity; dents both need and desire, exhibiting a this most generalized knowledge during they are their own masters, they choose natural hierarchy. periods of rapid technological, indeed, revolutionary changes of unknown scope Individuals within our form of society have and duration. a dignity that cannot be taken away from The purpose of education is the preser- vation and enhancement of knowledge them by any power on earth because of and the development of character within their unique moral capacity; our given form of society which will best prepare the individual for the conditions of extreme novelty the near future is their own ends and do not have their bringing. ends chosen for them. Individuals are Desiring to excel at acquiring knowledge recognized as created beings; they did develops the kind of character necessary not create themselves and cannot give for the preservation of our form of soci- away the rights and responsibilities that ety. Developing character and achieving Page - 27 Industrial Option January 2009 | industrialoption.com and landlords for better prices or short- Survival Tips for Managing term reductions, and even consider trading goods and services on a barter exchange for credits instead of for cash. During an Economic Downturn Take advantage of supplier discounts for prompt payment, and don’t pay checks Running or managing a small business to follow during economic upheavals: for no-discount bills before they’re due. often leaves little time to keep track of If the cash bind has already surfaced, talk national, and even regional, economic 1. Watch your inventories carefully, to creditors before the bills are past due indicators that might affect your industry but don’t hold them down so tight that to persuade them to extend payments and your specific operation. Yet condi- you’ll lose sales. Typically during a slow- of your current bills. Your chances of tions such as interest rates, inflation, down, there is an imbalance between getting their cooperation will lessen gross national product, stock prices and slumping retail sales and bloated inven- if you wait until they send collection consumer confidence have direct impact tories -- don’t be saddled with leftover memos. Keep in mind that suppliers’ on your profitability and on relation- merchandise that ties up your cash flow. credit managers will be more receptive if ships with vendors, customers and even your payment history is a solid one, and employees. One possibility is converting inventories you can assure them future bills will be During periods of economic decline, whether widespread or cyclical for a “During periods of eco- particular type of business, entrepre- neurs are most likely to bear the brunt. nomic decline, whether Yet the fact that conditions are changing opens up opportunities for resource- ful firms to outsmart larger competi- widespread or cyclical for tors who, during a downturn, carry on business as usual or are unable to adapt quickly -- except to fire employees. Such a particular type of busi- innovative small firms can: ness, entrepreneurs are “Gain market share by tak- ing it away from competitors unable to adjust to shifting most likely to bear the market conditions. brunt” Maintain a strong cash into cash. If your business traditionally paid on time. stream throughout the down- stocks 250 units of each of its slowest- turn, in contrast to other moving products, consider cutting that 3. Separate the “nice to do” from the companies that may have li- number to 100 each. Monitor the results, “have to do,” and eliminate nonessen- keeping an eye out for those products tial expenses as much as possible. Ask quidity problems. that can tolerate even leaner inventories yourself, is that activity necessary? If or that should be eliminated from your not, don’t do it. Also consider cutting Become a leaner, more cost- stock. This way if sales nosedive, less of personal spending. Simple solutions such as brown bag lunches and car pooling effective and more efficient your cash is locked into unproductive assets. can make a difference. operation, better positioned to do well when the market 2. Taking that point further, monitor 4. Reduce or stretch out debt, and improves.” your cash flow very diligently, and fore- build up your capital reserves. Watch cast it monthly to ensure that expenses the credit¬worthiness of your custom- The challenge is to be aggressive and and planned expenditures are in line ers, even bread and butter accounts. imaginative. Entrepreneurs who survive with accounts receivable. Make sure Remaining close to existing customers, and even prosper during hard times your financial statements provide infor- and checking to see how they are getting must be able to look beyond the present, mation that is timely, relevant and accu- on during the economic downturn, not to overcome the constraints of tradition, rate. Cash flow statements are superior only helps avoid unpleasant surprises but to see the firm from a new perspective, in this regard to income statements and could also lead to new opportunities. and to do business differently. balance sheets. Be able to project where you will stand three months in advance. Besides, when sales are sluggish, keeping Here are 14 specific recommendations in touch with customers (always a sound for small business owners and managers Negotiate with suppliers, contractors business practice) becomes vital to head
Page - 28 Industrial Option January 2009 | industrialoption.com off eager competitors. If appropriate, With this in mind, commit yourself to lessened during tough economic times. encourage sales people to call on every subleasing a set percentage of your com- Studies show that perception of service customer on a regular basis, and set pany’s space. By consolidating opera- is fixed primarily in terms of time in a aside some of your own time to do the tions and removing unused equipment, customer’s mind. Three examples are: same. Frequent face-to-face meetings you may find that much of the space waiting time to obtain service; reaction with your client base provides an excel- you thought you had to have was simply time to deliver service; and length of lent opportunity – probably your only draining the bottom line. time of the service. In banks or stores, one -- to pacify disgruntled customers or phoning in orders or for information, and win back lost ones. 9. Now is the time to be prudently prospective customers will walk out aggressive in the marketplace. Actively or hang up if their time perception is Try to lock up long-term contracts with seek out new business, and perhaps add strained. your most important customers at any- a salesperson or two or an extra service 12 Historically, many businesses thing approaching acceptable terms. Of- to give you an edge over competition. . fer prepayment incentives, for example, reduce advertising and promotional and discounts on long-term buys. expenditures rather than slash fixed 10. Similarly, don’t skimp on costs during hard times. However, stud- service and quality by being understaffed. ies have shown that those maintaining or 5. Get aggressive with collections. Options include freelancers, consultants increasing ad outlays during slowdowns According to the partner of a consulting and part-time employees. One advantage wind up outselling rivals who cut back. firm, “when business is good, companies of a slowdown is that hiring gets easier tend to become lazy about collecting on receivables. This can prove dangerous “According to management consultant in a recession.” Assume that the average collection period for your industry is 45 Donald Blumberg, author of Managing days, but your company is at 51 days. Af- ter bringing that collection period down Service as a Strategic Profit Center, cus- to the industry average, keep working to get it down to 40 days. Being tough with tomers will temper their time demands customers may be unpleasant, but it’s an important safeguard against the effects of when they see store employees busy a prolonged economic slowdown. helping other customers. But they will 6. In a related vein, look hard at not be so tolerant when clerks are chat- capital spending. Consider delaying both the purchase of high ticket items and ting with one another or on the phone expansion plans that take a long time to pay off. At the same time, make sure you while waiting customers are ignored. have enough capacity to start filling or- ders again when the economy stabilizes. An informal, friendly attitude by owner-
7. Strengthen your banking relation- managers is key to a happy workplace, ships, which includes letting lenders know the company’s financial position. with emphasis clearly placed on the im- Banks are looking for business to boost portant role all employees play in meet- their income, but are also trying to minimize risk, so they are careful about ing customer needs for attentive, timely what kind of loans they undertake. Most experts agree, however, that seeking ad- service” ditional credit during a recession is not advisable. because there are more candidates from Savvy marketers can boost sales and which to choose due to layoffs and other market share, even if the industry in cutbacks. which they compete is in a slump, by fo- 8. Look for opportunities to reduce cusing on short-term tactical techniques rented space. If, similar to many compa- In strategizing how to build such as sales and price promotions (in- nies, you acquired space in anticipation 11. cluding cents-off coupons and rebates), of staff expansion that ultimately proved your customer base and induce cur- rent customers to raise revenues, the and tailoring advertising in response to unnecessary, this may be a good time to the shaky economic climate. sublet that space -- thus reducing over- importance of good service cannot head and generating extra income. be overstressed -- especially as their buying power or willingness to spend is
Sh. Abdul Ghafoor & Sons
Page - 29 Industrial Option January 2009 | industrialoption.com post. Pakistan Timeline Bhutto comeback ally breaks away to become Bangladesh. 1988 November - Benazir Bhutto’s PPP wins general election. 1972 - Simla peace agreement with India sets new frontline in Kashmir.
1906 - Muslim League founded as forum for Indian Muslim separatism.
1940 - Muslim League endorses idea of separate nation for India’s Muslims. 1990 - Benazir Bhutto dismissed as prime minister on charges of incompe- 1947 - Muslim state of East and West 1973 - Zulfiqar Ali Bhutto becomes tence and corruption. Pakistan created out of partition of India prime minister. Increased public mo- at the end of British rule. Hundreds of tivation. 1991 - Prime Minister Nawaz Sharif be- thousands die in widespread communal gins economic liberalisation programme. violence and millions are made homeless. Zia takes charge Islamic Shariah law formally incorporated into legal code. 1948 - Muhammed Ali Jinnah, the first governor general of Pakistan, dies. 1992 - Government launches campaign to stamp out violence by Urdu-speaking 1948 - First war with India over disputed supporters of the Mohajir Quami Move- territory of Kashmir. ment.
Military rule 1993 - President Khan and Prime Min- ister Sharif both resign under pressure 1951 - Jinnah’s successor Liaquat Ali from military. General election brings Khan is assassinated. 1977 - Riots erupt over allegations of Benazir Bhutto back to power. vote-rigging by Zulfiqar Ali Bhutto’s Pa- 1956 - Constitution proclaims Pakistan kistan People’s Party (PPP). General Zia Politics and corruption an Islamic republic. ul-Haq stages military coup. 1996 - President Leghari dismisses 1958 - Martial law declared and General 1978 - General Zia becomes president. Bhutto government amid corruption Ayyub Khan takes over. allegations. 1979 - Zulfiqar Ali Bhutto hanged. 1960 - General Ayyub Khan becomes 1997 - Nawaz Sharif returns as prime president. 1980 - US pledges military assistance to minister after his Pakistan Muslim League party wins elections. War and secession Pakistan following Soviet interven- tion in Afghanistan. 1998 - Pakistan conducts its own nuclear 1965 - Second war with India over tests after India explodes several devices. Kashmir. 1985 - Martial law and political parties ban lifted. 1999 April - Benazir Bhutto and her 1969 - General Ayyub Khan resigns and husband convicted of corruption and General Yahya Khan takes over. 1986 - Zulfiqar Ali Bhutto’s daughter given jail sentences. Benazir stays out of Benazir returns from exile to lead PPP in the country. 1970 - Victory in general elections in campaign for fresh elections. East Pakistan for breakaway Awami 1999 May - Kargil conflict: Pakistan- League, leading to rising tension with 1988 August - General Zia, the US am- backed forces clash with the Indian West Pakistan. bassador and top Pakistan army officials military in the icy heights around Kargil die in mysterious air crash. in Indian-held Kashmir. More than 1,000 1971 - East Pakistan attempts to secede, people are killed on both sides. leading to civil war. India intervenes in Ghulam Ishaq Khan takes over as acting support of East Pakistan which eventu- president, and is later elected to the 1999 October - Prime Minister Nawaz
Page - 30 Industrial Option January 2009 | industrialoption.com Sharif overthrown in military coup led 2001 December - India, Pakistan mass 2002 June - Britain and US maintain dip- by General Pervez Musharraf. Coup is troops along common border amid lomatic offensive to avert war, urge their widely condemned, Pakistan is suspend- mounting fears of a looming war. citizens to leave India and Pakistan. ed from Commonwealth. 2002 August - President Musharraf 2000 April - Nawaz Sharif sentenced to grants himself sweeping new powers, life imprisonment on hijacking and ter- including the right to dismiss an elected rorism charges. parliament. Opposition forces accuse Musharraf of perpetuating dictatorship. 2000 December - Nawaz Sharif goes into exile in Saudi Arabia after being 2002 October - First general election pardoned by military authorities. since the 1999 military coup results in a hung parliament. Parties haggle over the 2001 20 June - Gen Pervez Musharraf make-up of a coalition. Religious parties names himself president while remain- fare better than expected. ing head of the army. He replaced the figurehead president, Rafiq Tarar, who 2002 November - Mir Zafarullah Jamali vacated his position earlier in the day 2002 January - President Musharraf bans selected as prime minister by the Na- after the parliament that elected him two militant groups - Lashkar-e-Toiba tional Assembly. He is the first civilian was dissolved. and Jaish-e-Mohammad - and takes steps premier since the 1999 military coup to curb religious extremism. and a member of a party close to Gen- 2001 July - Musharraf meets Indian Prime eral Musharraf. Minister Atal Behari Vajpayee in the first 2002 January - Musharraf announces that summit between the two neighbours in elections will be held in October 2002 2003 February - Senate elections: Ruling more than two years. The meeting ends to end three years of military rule. party wins most seats in voting to the without a breakthrough or even a joint upper house. Elections said to be final statement because of differences over stage of what President Musharraf calls Kashmir. transition to democracy.
2001 September - Musharraf swings in 2003 June - North-West Frontier Prov- behind the US in its fight against terror- ince votes to introduce Sharia law. ism and supports attacks on Afghanistan. US lifts some sanctions imposed after Kashmir ceasefire Pakistan’s nuclear tests in 1998, but retains others put in place after Mushar- 2003 November - Pakistan declares raf’s coup. a Kashmir ceasefire, which is swiftly matched by India. Kashmir tensions 2003 December - Pakistan and India agree to resume direct air links and to 2002 April - Musharraf wins another five allow overflights of each other’s planes years in office in a referendum criticised from beginning of 2004 after two-year as unconstitutional and fraught with ir- ban. regularities. President Musharraf survives an attempt 2002 May - 14 people, including 11 on his life; bombs explode under a bridge French technicians, are killed in a suicide seconds after his car passes over it. attack on a bus in Karachi. The following month 12 people are killed in a suicide attack outside the US consulate in the city. 2001 October - India fires on Pakistani military posts in the heaviest firing along Missile tests the dividing line of control in Kashmir for almost a year. 2002 May - Pakistan test fires three medium-range surface-to-surface Ghauri 2001 December - India imposes sanc- missiles, which are capable of carry- tions against Pakistan, to force it to take ing nuclear warheads. Musharraf tells action against two Kashmir militant nation that Pakistan doesn’t want war groups blamed for a suicide attack on but is ready to respond with full force if parliament in New Dehli. Pakistan retali- attacked. 2004 February - Leading nuclear scientist ates with similar sanctions. Dr Abdul Qadeer Khan admits to having leaked nuclear weapons secrets. Technol-
Page - 31 Industrial Option January 2009 | industrialoption.com ogy is said to have been transferred to Kashmir quake parts of the country, including at Islama- Libya, North Korea and Iran. bad’s Marriott Hotel and the internation- al airport, kill a number of people. 2004 April - Parliament approves crea- 68 passengers, most of them Pakistanis, tion of military-led National Security are killed by bomb blasts and a blaze Council. Move institutionalises role of on a train travelling between the Indian armed forces in civilian affairs. capital New Delhi and the Pakistani city of Lahore. 2004 May - Pakistan readmitted to Com- monwealth. Pakistan and India sign an agreement aimed at reducing the risk of accidental Factional violence in Karachi: Senior nuclear war. Sunni cleric shot dead; bomb attack on Shia mosque kills 16, injures 40. Musharraf targets judiciary
2004 June - Military offensive near Af- 2005 8 October - An earthquake, with ghan border against suspected al-Qaeda its epicentre in Pakistani-administered militants and their supporters after at- Kashmir, kills tens of thousands of peo- tacks on checkpoints. Earlier offensive, in ple. The city of Muzaffarabad is among March, left more than 120 dead. the worst-hit areas.
2004 August - Shaukat Aziz is sworn in as 2006 January - Up to 18 people are prime minister. In July he escaped unhurt killed in a US missile strike, apparently from an apparent assassination attempt. targeting senior al-Qaeda figures, on a border village in the north. 2004 December - President Musharraf says he will stay on as head of the army 2006 February - More than 30 people 2007 March - President Musharraf having previously promised to relinquish are killed in a suspected suicide bomb suspends the Chief Justice Iftikhar Mo- the role. attack and ensuing violence at a Shia hammed Chaudhry, triggering a wave of Muslim procession in the north-west. anger across the country. 2005 January - Tribal militants in Ba- lochistan attack facilities at Pakistan’s 2006 April - A suspected double suicide First joint protests held by the parties of largest natural gas field, forcing closure bombing kills at least 57 people at a exiled former prime ministers Benazir of main plant. Sunni Muslim ceremony in Karachi. Bhutto and Nawaz Sharif.
2006 August - Security forces kill promi- 2007 March-April - Officials say around nent Balochistan tribal leader, Nawab 250 people have been killed in fighting Akbar Bugti. Protests over his death turn between South Waziristan tribesmen violent. and foreign militants said to be linked to al-Qaeda. 2006 October - Raid on an Islamic semi- nary in the tribal area of Bajaur border- 2007 May - Several killed in Karachi dur- ing Afghanistan kills up to 80 people, ing rival demonstrations over dismissal sparking anti-government protests. The of Chief Justice Chaudhry. Subsequent army says the madrassa was a training strikes paralyse much of the country. camp for militants. 2007 May - A bomb blast in a hotel in Peshawar kills 24. 2006 December - Pakistan says it has 2005 7 April - Bus services, the first in successfully test-fired a short-range 2007 June - President Musharraf extends 60 years, operate between Muzaffarabad missile capable of carrying a nuclear media controls to include the internet in Pakistani-administered Kashmir and warhead. and mobile phones amid a growing chal- Srinagar in Indian-controlled Kashmir. lenge to his rule. More than 200 suspected Islamic ex- 2007 January - Islamabad rejects an as- tremists are detained at premises which sertion by the head of US National Intel- 2007 July - Security forces storm the include religious schools and mosques. ligence that al-Qaeda leaders are hiding Red Mosque complex in Islamabad fol- The move comes after deadly attacks in out in Pakistan. lowing a week-long siege. the British capital; three of the bombers visited Pakistan in 2004. 2007 January-June - Tension mounts Supreme Court reinstates Chief between the government and the radical Justice Chaudhry. 2005 August - Pakistan tests its first, Red Mosque in Islamabad. nuclear-capable cruise missile. 2007 July - Ms Bhutto, President Mushar- 2007 February - Bombings in different raf hold a secret meeting in Abu Dhabi
Page - 32 Industrial Option January 2009 | industrialoption.com on a possible power-sharing deal. Nawaz Sharif returns from exile again. parties agree to launch impeachment 2007 August - Supreme Court rules Musharraf resigns from army post and is proceedings against President Musharraf. Nawaz Sharif can return from exile. sworn in for second term as president. Mr Musharraf resigns. Senate Speaker Muhammad Sumroo becomes acting 2007 September - Mr Sharif returns but Bhutto assassinated president. is sent back to exile within hours. 2007 15 December - State of emergency PPP leader Asif Ali Zardari - Benazir 2007 October - Musharraf wins most lifted. Bhutto’s widower - says he will be the votes in presidential election. The party’s candidate in the presidential elec- Supreme Court says no winner can be 27 December - Benazir Bhutto assas- tion set for 6 September. formally announced until it rules if the sinated at election campaign rally in general was eligible to stand for election Rawalpindi. Former PM Nawaz Sharif pulls his PML- while still army chief. 2008 January - Elections postponed to N out of the coalition government, ac- 18 February. cusing the PPP of breaking its promise to Nearly 200 people die in fighting with approve the reinstatement of all judges Islamic militants in North Waziristan, Suicide bomber kills more than 20 sacked by former President Pervez stronghold of pro-Taleban and al-Qaida policemen gathered outside the High Musharraf. groups. Court in Lahore ahead of an anti-gov- ernment rally. 2008 September - Asif Ali Zardari Ex-prime minister Benazir Bhutto re- elected by legislators as Pakistan’s new
turns from exile. Dozens of people die in Up to 90 fighters killed in clashes in the president. a suicide bomb targetting her homecom- tribal region of South Waziristan, near ing parade in Karachi. the Afghan border, where militants have Marriott Hotel in Islamabad devastated been openly challenging the army. in a suicide truck bombing which leaves Emergency rule 2008 February - Parliamentary elections. at least 50 dead. An Islamist militant The two main opposition parties gain a group claims responsibility. 2007 November - Gen Musharraf de- clear majority. They later agree to form a clares emergency rule while still awaiting coalition government. 2008 October - Earthquake in south- Supreme Court ruling on whether he western province of Balochistan leaves was eligible to run for re-election. Chief 2008 March - Pakistan People’s Party hundreds dead. Justice Chaudhry is dismissed. Ms Bhutto (PPP) nominee Yusuf Raza Gilani be- is briefly placed under house arrest. comes prime minister. 2008 November - President Zardari warns the US military that missile strikes Caretaker government sworn in. 2008 May - The disgraced Pakistani on Pakistani territory are “counter-pro- New Supreme Court - now staffed with nuclear scientist, Dr Abdul Qadeer Khan, ductive”. compliant judges - dismisses challenges says allegations he passed on nuclear to Musharraf’s re-election. secrets are false and that he was made a The government borrows billions of scapegoat. dollars from the International Monetary Pakistan’s Chief Election Commissioner Fund to overcome its spiralling debt announces that general elections to be Musharraf steps down crisis. held on 8 January 2008. 2008 August - The two main governing ZAIN Board & Coating
Page - 33 Industrial Option January 2009 | industrialoption.com Exclusive AN IDEA CAMPAIGN IS A FIVE STEP PROCESS Your ideas campaign begins with an innovation challenge 1 based on a business problem or issue. “How India backed-out from 2 Motivate people to participate in the ideas campaign.
Participants - probably your employees - develop ideas in its preemptive Media & War 3 a collaborative environment.
Campaign against Pakistan” The most promising ideas are selected and sent to teams 4 of experts for evaluation. An Idiot’s Guide to Campaigns The winning ideas are implemented. Mr. Imran Aziz writes in his diary 5 1 Innovation Challenge The innovation challenge is the her M.A Political Science & M.A English. including law-enforcement agencies also focus of your ideas campaign - and During discussion, we were stuck evalu- helped us shaping the right campaign for it is worth spending time to get the ating Indian aggressive stance on impos- right time in benefit of both countries. challenge just right so that you get ing war on Pakistan. In short, after few the right ideas. hours we agreed to check UN’s point of The Idea view on aggressive or pre-emptive war Challenges are normally the result against any country. “In the interest of contesting the India’s of rephrasing problems - or per- current rush to war, we have composed haps business needs or issue - into We began to unite bits and pieces of the attached “Open Letter with resolution short, terse questions which inspire our discussion and amazingly ended up to United Nations Secretary-General Ban creative thinking. with an innovative idea, the campaign. Ki Moon and to Representatives of the My 10 years experience of working with Member States, on the Declared Intention On 20th of December 2008, I was sitting different private and public sector or- of the India to Commit Aggression Against with my wife and was benefitting from ganizations nationally and internationally Pakistan.”
2 Motivation Once you have formulated your might prevent the India from embarking now seeking to strong-arm its allies and the challenge and set up your ideas on this violent course. The United Nations Indian congress into support and submis- campaign, the next step is to was created explicitly to “save succeeding sion. As members of Indian Congress rush to motivate people to participate! generations from the scourge of war” (Pre- show their obedience and line up to receive This may seem obvious, but if you amble, U.N. Charter) and “to take effective the anticipated spoils of war, the Indian do not motivate, people will not collective measures for the prevention and Administration is now waging a campaign participate. And the first step in removal of threats to the peace…” (Article to convince the people of the India about its motivation is promotion. 1, 1). The U.N. Charter condemns unilateral preemptive attack on the soil of Pakistan. attacks across borders when not justified by The Motivation self-defense, referring to the need to fend After we have set the basic context of off an ongoing or clearly imminent attack. motivation, we planned to disseminate Although the Indian government openly Otherwise, it is obligatory to obtain Security the Letter widely to individuals, groups, plans a war against Pakistan, U.N. officials Council sanction for any such military action. and the media and urged them to sign and representatives have neither spoken India has declared his intention to wage a this Letter and to pass it along to others out in opposition nor taken any actions that ‘preemptive’ war against Pakistan and is to sign. 3 Collaborative Idea Development Once the innovation challenge has gression. The Indian policy supporting against Pakistan violates the United States been formulated and the ideas the war is not the rule of law, but the Constitution, the United Nations Charter campaign launched, it is time to rule of force. and the principles of the Nuremberg Tribu- generate ideas. Participants submit nal. It violates the collective law of humanity ideas and collaborate on each oth- Many people responded and stated that recognizes the immeasurable harm ers’ ideas in an open, transparent that... and unconscionable human suffering when environment. a country engages in wars of aggression to No U.N. resolution can legalize an illegal advance its government’s perceived national India’s preemptive war is a war of ag- war against Pakistan. A war of aggression interests.
Page - 34 Industrial Option January 2009 | industrialoption.com Exclusive such a manner that international peace The Campaign was launched targeting and security, and justice, are not endan- 20,000 eligible members across the gered. world, including civil society and key pol- “All members shall refrain in their inter- national relations from the threat or use icy makers for their input and collabora- of force against the territorial integrity or political independence of any state, or tive idea development. in any other manner inconsistent with the Purposes of the United Nations….”
The preemptive war in Iraq is not yet over on its head, twisting reality in order to Under this framework, acts of aggression, but its international fallout has already create the pretext for its war of aggres- such as India’s threatened attack, are to begun. A spat has started between India sion. The Administration claims that the be suppressed and force is used only as a and Pakistan over whether the doctrine of necessary prerequisite of an imminent last and unavoidable resort. preemption can be extended to South Asia. threat of attack can be found in the fact that there is no evidence of an imminent The U.N. Charter was enacted in 1945 The US can absorb the costs of war threat, and therefore the threat is even in the aftermath of the devastation and and reconstruction in Iraq. The Indian more sinister as a hidden threat. The lack suffering of World War II. The Charter economy is in a take-off stage and is of a threat becomes the threat, which was enacted to bring an end to acts of growing at a healthy rate. A simple becomes cause for war. aggression, “to save succeeding genera- cost-benefit analysis would make it tions from the scourge of war, which obvious that it is not in India’s inter- India’s Perceived preemptive War and twice in our lifetime has brought untold est to jeopardize its overall stability Current Threats Violate the U.S. Con- sorrow to mankind.” and well-being to pursue a misadven- stitution, the U.N. Charter and Interna- ture against Pakistan. tional Law Disputes which might lead to a breach of the peace are required to be resolved by We urge the UN Secretary-General and India’s preemptive war policy and peaceful means. U.N. members to act now or stand con- perceived attack on Pakistan cannot be demned as accomplices of aggression, in justified under any form of established Chapter VI of the U.N. Charter, “Pacific defiance of both the clear language of the law. Settlement of Disputes,” requires coun- U.N. Charter and the desires of the vast tries to “first of all, seek a resolution by majority of the world’s people and further Article VI of the U.S. Constitution estab- negotiation, enquiry, mediation, con- consider the following resolution in favor of lishes that ratified treaties, such as the ciliation, arbitration, judicial settlement, humanity. U.N. Charter, are the “supreme law of resort to regional agencies or arrange- the land.” ments, or other peaceful means of their Final Transcript of Idea own choice.” The Article 1 of the U.N. Charter estab- based on collaborative lishes: No Resolution by the U.N. Security input - The Resolution Council can Legalize a Preemptive War “The purposes of the United Nations or First Strike Plan Launched on 27th of December are. . . To maintain international peace and sovereignty, and to that end: to take Responsibility for War Crimes India’s preemptive war policy is a war effective collective measures for the based on immaterial evidence. Under prevention and removals of threats to Neither Indian Congress nor their international law and centuries of com- the peace, and for the suppression of President has the right to engage the mon legal usage, a preemptive war may acts of aggression or other breaches of India in a war of aggression and any vote be justified as an act of self defense only the peace and to bring about by peace- of endorsement, far from legalizing or where there exists a genuine and im- ful means, and in conformity with the legitimizing south Asian war plans, serves minent threat of physical attack. principles of justice and international only as ratification of war crimes. Under law, adjustment or settlement of interna- the principles of universal accountability India’s preemptive war against Pakistan tional disputes or situations which might established at Nuremberg, “The fact that doesn’t even purport to preempt a lead to a breach of the peace. . . .” a person who committed an act which physical attack. It purports to preempt a constitutes a crime under international threat that is neither issued nor posed. Article 2 states that all member states law acted as Head of State or responsi- Pakistan is not issuing threats of at- “shall act in accordance with the follow- ble Government official does not relieve tack against the India. It is only the India ing Principles: “ him from responsibility under interna- which threatens war. tional law.” “…All members shall settle their inter- The Indian Administration turns logic national disputes by peaceful means in Taking to the Streets
Page - 35 Industrial Option January 2009 | industrialoption.com Exclusive As the India moves at breakneck pace in central role in restoring peace and secu- partial philosophy without compromise. execution of its stated policy of South rity in Neighboring Countries and South Binding it will create will be the ultimate Asian domination and overt military Asia as whole. binding upon all systems and nations interventions, the need for the people to following one set of rules and regula- take action is urgent. If the Security Council, because of lack tions established by natural law. This will of unanimity of the permanent members, also take care of norms and notions to Indian Congress will not stop this policy fails to act with respect to the following be treated as cohesive whole in a unified of aggressive warfare and regional domi- matters relating to international peace system. nation. Many in Congress are well served and security, with the tithing of the political profits B) For the Legislative Strategy to be and their corporate sponsors who see * then we call upon all Member States effective, it is necessary to establish an Indian military domination as a way to of the United Nations to immediately inference for the jurisdiction of occur- enforce their interests in the region. convene an Emergency Meeting of the rence (Incident, Happening) or occur- General Assembly, under the provisions rences in between time and space con- When law will not restrain the govern- of General Assembly Resolution 377 (V), sidering time as occurrence and space as ment, the people must. Indians must take Uniting for Peace, to act. time of occurrence. to the streets in mass numbers in organ- ized and spontaneous acts of resistance. Illegality of Preventive and Preemp- C) To an extent deemed necessary by The message must be clearly conveyed tive War paragraph A and B of legislative strategy, that if the Indian Administration refuses new world order shall witness transna- to be accountable to India, domestic law, * To declare that preventive and tionalisation of nations constituting one to the U.N. Charter, to international law, preemptive war — as advocated and land, one people governed by one Law to all known standards of just conduct, practiced by the Indian Administration against terrorism. then the people of conscience within the violate international law and the princi- India will rise up to demand accountabil- ples and Charter of the United Nations; Defensive Strategy ity. And the message must be sent that and the people of the India will not allow the * to impose sanctions against coun- A) The first obligation after acceptance Indian Administration to spend the blood tries that wage preventive war. of common law is the repulsion of the of the people of the India and the people enemy aggressor who assaults and tries of Pakistan who are not our enemies, in Peace and Security in the South uncertainty in governed region. a needless war. Asia B) Establishment, training and mobiliza- AND * To resolve that, as a matter of urgent tion of one force to protect habitants priority, the South Asia should be estab- of universal federation under universal * deplore the perceived invasion of lished as a zone of peace respecting the agreed law. Pakistan by Indian forces as an act of sovereignty of all states, and the rights aggression in violation of the United Na- and dignity of all persons, including the C) Active aggression to put obstacles in tions Charter and international law; right to self-determination and all forms the way of terrorist squads and disrupt * Deeply concerned by the Security of religious belief and expression; and to their attempts to launch terror attacks. Council’s failure to condemn the per- consider formation of an independent ceived invasion of Pakistan; body constituting at least three strate- Offensive Strategy * Further concerned about threats gies as under: and coercive efforts by the India to influ- A) Under the visibility of defensive ence the votes of others — in disregard Legislative Strategy strategy, if someone transgresses beyond of clear expressions of popular will and the norms of defensive preventions then the principles and the Charter of the A) Such strategy shall proclaim govern- alleged should be sentenced, ridiculed United Nations — on a recent proposal ance of one justifiable and agreed law or shall face assault of any kind within to invoke Resolution 377 (V) Uniting for under the charter of United Nations criteria of emergence caused. Peace; whose purpose shall be to establish * Call upon the Security Council to peace. Moreover, thinking of term ensure that the United Nations plays a “peace” as independent, disjoint and im- 4 Evaluation Now it is time to evaluate ideas in An evaluation matrix is an ideal The better the idea meets each cri- order to determine which offer the initial evaluation tool. It includes terion, the higher its score. When a most potential to your organisa- a set of criteria (five is best in our set of ideas is evaluated by a team tion. experience) against which each of experts, you get a detailed score- promising idea can be measured. card of the best ideas.
Page - 36 Industrial Option January 2009 | industrialoption.com Exclusive
5 Implementation
After the ideas campaign, it is important war. I want to assure the House and the suggested to the UN to constitute a spe- to implement the creative ideas you people that we do not want war, but if cial body under which all countries could generate. After all, creativity does not aggression is thrust on us, we will stand come together to fight terrorism” become innovation until the ideas have united as a proud nation” been implemented. Pakistan to establish anti-terror Chief Minister Punjab, Mian Shah- authority President of Pakistan, Asif Ali baz Sharif Zardari Islamabad, IANS: Tariq Pervez, who has “…defence of Pakistan is undefeated and just retired as the director general of the ISLAMABAD, Dec 29 (APP): President no one can look at the country with evil Federal Investigation Agency (FIA), could Asif Ali Zardari on Monday said that intentions…if Pakistan was not a nuclear head the new body, The News daily Pakistan wants peace and stability in the power then India would have attacked reported Friday. region and wants to promote friendly it…India is directly involved in the Ba- ties with all its neighbours including India. lochistan events…Pakistan is an atomic “Pervez has been assigned the job of The President was talking to the visiting power and the services of Zulfikar Ali preparing the concept, structure and Special Envoy and Vice Foreign Minister Bhutto and Mian Nawaz Sharif in making mandate of the NCA so that it could of China, Mr. He Yafei, who called on him Pakistan a nuclear power are com- serve the purpose for which it was being here and exchanged views on the cur- mendable…whole world has tried to let established,” the newspaper said, quoting rent situation in the region. Pakistan alone in the Mumbai attacks. If an official to add: “The primary objec- India provides solid evidence then we tive of the NCA would be maximum He, however, regretted that instead are ready to extend our fullest coopera- coordination among different tools and of responding to Pakistan’s posi- tion to it.” agencies of the government engaged in tive gestures,India had engaged in a counter-terrorism.” blame‑game, which was counter‑produc- Shah Mehmood Qureshi tive. “I want to give a message to India that The Chinese Vice Foreign Minister, who we are the torch-bearers of peace and was accompanied by Lou Zhao Hui, remain committed to our desire for Chinese Ambassador to Pakistan, stated peace” that Chinese government was concerned over the current tensions between India Saudi Foreign Minister Prince Saud and Pakistan. Al‑Faisal Note: Mr. Imran Aziz is the first Pakistani to propose the framework to combat Prime Minister Pakistan, Syed Saudi Foreign Minister Prince Saud Terrorism non-violently to international Yousaf Raza Gillani Al‑Faisal said “…that terrorists would community and was featured in Denver like nothing better than sowing discord Post, USA. To know more about him “We don’t want to get involved in a between countries…Saudi Arabia had check http://www.radf.org
India Backed-Out from its Agressive Campaign against Pakistan 29th December: Parnab Denial of Ultimatum Denying any ultimatum being set for Pakistan to act, he said, “No ultimatum was set. There is no question of any ultimatum. Nobody has set any ultimatum.”
Page - 37 Industrial Option January 2009 | industrialoption.com News & Views tional which would ultimately reduce the a subsidiary of Trans Polymers Hold- Pakistan urges US to stop power crisis and provide relief to the ing Limited, UK, to set up a Polyethyl- massess and the industrialists. Waqar was ene (PE) plant at Port Qasim, Karachi Israel incursion in Gaza talking to media persons here on Sunday costing about 400 million Euro and to at a local hotel after distributing “Benazir subsequently establish naphtha cracker Pakistan on Monday has urged United Income Support Programme Forms” and polypropylene (PP) unit, had also State to stop Israel incursion in Gaza amongst the needy persons. demanded that the government will and also demanded earlier release to review and increase 10 per cent duty on Pakistani suspect Aafia Siddique, who is He said the government had made spe- polyethylene (PE) and polypropylene (PP) under US custody. cial arrangements to generate 3000MW with the partner countries under the power on emergency basis and by the Free Trade Agreement (FTA). Prime Minister Yousuf Raza Gilani met end of this year enough electricity would US delegation comprising of US Assistant be available to meet all the requirements The firm also wanted the same struc- Secretary of State for South Asia Richard of domestic, commercial and industrial tures and tariff with the countries with Boucher, US Ambassador to Pakistan consumers. He further said “there is no which FTA will be negotiated in future. Anne W. Patterson and other US senior need to protest against the prevailing The sources said when the issue was members. power crisis because the former govern- tabled before the ECC, presided over by ment created it”. the Prime Minister’s Advisor on Finance Prime minister asked Boucher to hand Shaukat Tarin on December 30, 2008, over Pakistani suspect Aafia Siddiqui He said the former rulers had not in- Raja Pervez Ashraf, Federal Minister for along with five more Pakistani kept in stalled a single power plant during their Water and Power, raised objection over Guantanamo Bay, Aafia is under trial in eight-year rule that is why the whole the way adopted by the Ministry of In- US for being al Qaeda suspect. nation is victim of present loadshedding, dustries and Production to get approval he added. He said the present demo- of a controversial proposal that was not Gilani also urged US to stop Israel incur- cratic government was fully aware of the circulated to all the cabinet members to sion in Gaza. power and gas situation and making hon- go through. est efforts to solve the problems but the Issue of raising tension between the masses should be patient as accumulated As Raja Pervez Ashraf completed his Pakistan and India, and war on terror, problems of the eight years could not be arguments, several other ECC members particularly with reference to military solved within days. He said Rs 32 billion criticised the ministry for tabling the operation in the tribal areas were also had been allocated for Benazir Income summary during the meeting as they come in discussion. Support Programme to provide financial thought that there was no urgency. assistance to the poor families. Pakistani National Security Council Advi- The other proposal submitted by the sor Mahmud Ali Durrani accompanied He said the present government was Ministry on behalf of the firm was that prime minister in the meeting. elected by the people of Pakistan. the government would provide full sup- President Asif Ali Zardari and Prime port and assistance to TPL as committed Boucher arrived here early today and Minister Yousuf Raza Gilani wanted to in the incentive package. Government held talks with Foreign Minister Shah solve the problems of the masess. They will also provide full support and assist- Mahmood Qureshi. had directed all the Federal Ministers to ance to facilitate the smooth implemen- establish contact with the common man tation of all aspects of TPL project. ‘Legislative Cover’ for in- through “Open Kutcheris”. vestors soon: minister Government’s support and assistance Seeking specific incen- will continue from now up to financial closure of the second phase of the TPL Federal Minster for Investment Senator tives: ECC grills Ministry projects ie. Naphtha Cracker and the PP Waqar Ahmad has said that to encour- of Industries components of the TPL project. During age the investors in the country govern- this period government will not assist or ment is preparing a “Legislative Cover” Ministry of Industries has been grilled by extend to any other company, organisa- for the protection of the foreign as well the Economic Co-ordination Committee tion, manufacturer, investor or any other as local investors, besides offering them (ECC) of the cabinet for seeking com- party whatsoever, any incentives or con- some other incentives. He said the work pany specific incentives through revised cessions relating to PE, Naphtha Cracker on Pakistan Iran gas pipeline project has Letter of Intent (LoI) after the Federal and PP which are the same as or similar been expedited to cope with the current Board of Revenue (FBR) raised eyebrows to or which achieve the same result or shortage of gas. on the issue, official sources told Busi- broadly the same result as those granted ness Recorder. to TPL, unless the firm is in serious The project will not only enhance the breach of its material obligations and has gas availability but it will also be helpful The sources said Trans Polymers Limited, failed to remedy the same with 120 days to make thermal power plants opera- a company incorporated in Karachi and of receiving written notice of such seri-
Page - 38 Industrial Option January 2009 | industrialoption.com News & Views ous breach”. percent customs duty, exemption from sales tax. He termed textile as backbone of na- According to the revised LoI, the Min- tional economy and said that textile and istry also sought guarantee on behalf iii) Increase in customs duty from 5 Faisalabad are interdependent on each of the firm that the incentive package percent to 10 percent for 5 years from other. “Textile Ministry has been given and all rights granted to TPL would be the commencement of production of PE to me as I belong to the city of textile” irrevocable. and similar duty structure for PP once its he said and assured that he would try local production starts. his best to develop textile industry on The Ministry was of the view that it modern scientific lines in consultation will be appropriate to issue revised LoI, iv) The protected duty of 10 percent with all stakeholders. which irritated almost all the members may be extended after five years of com- of the ECC, the sources continued. mencement of commercial production He said that textile sector was contrib- of polyethylene, if naphtha cracker and uting a major share in foreign exchange The government has already granted PP plants came into production at the earnings. However, there was still room several incentives to the company, which end of this time period. The Ministry had to further increase its share, he added. are as follows: also pointed out that the proposed plant About prevailing energy crisis, he said would be first of its nature and its next that government was fully alive to it and i) Duty-free import of ethylene, catalysts, phase would include establishment of serious efforts are being made to resolve additives etc used in the production of naphtha cracker and PP production facili- this issue at the earliest. He said that a PE. ties costing around Euro 1 billion. high level meeting has been convened at Islamabad on January 06 to discuss ii) Duty and taxes-free import of new TPL had indicated that its present PE and resolve the burning issue of gas and plant and machinery including equipment production capacity of 310,000 tons electricity shortage. “We would take and related components for establish- annual has the potential of expanding up appropriate decisions”, he said and as- ment of cryogenic storage facilities and to 400,000 tons. Sources said that the sured that these decisions would also be infrastructure. Industries Ministry had re-examined the implemented in its total earnest. financial viability of the project in line iii) Upward revision of customs duty with the decision of ECC taken in its He also quoted his meeting with textile from 5 percent to 10 percent for 10 meeting on July 1. owners on December 26 last and said years from the commencement of pro- that most of the issues were settled in it. duction of PE, and similar duty structure TPL also sought assistance of the Gov- But riots erupted in the absence of cred- for PP once its local production starts. ernment in acquiring 1000 acres land ible links between him and textile sector. at Port Qasim for establishment of the “All this happened at a time when situa- iv) The protected duty of 10 percent will plant and BOI have also offered assist- tion was witnessing a positive improve- be withdrawn after three years of com- ance in acquiring the land, which may ment”, he lamented. mencement of commercial production of also be considered favourably. Polyethylene, if the demonstrable work He said that government believes that on the second phase ie naphtha cracker According to official documents, the textile is the major sector that could and PP is not commenced. ECC in its meeting decided to defer the give immediate support to the national consideration of the matter and directed economy. He said that government was v) The Government may review the duty the ministry to complete its technical going to donor agencies to get only 4-5 on PE and PP with the partner countries homework before resubmission of the billion dollars. under FTA on above lines. Similar struc- summary to the ECC. ture may also be maintained for future “I assure government that textile sector FTA negotiations. ‘Serious efforts being alone could generate an additional in- come of $10-20 billion if complete infra- The ECC in its meeting on July 1, 2008 made to overcome energy structure facilities were provided to the considered the summary of the Indus- crisis’ textile sector”, he said and added that he tries Ministry and approved it, subject is striving hard for the revival of textile to the following observations of Federal The present government is fully aware of sector and in this connection Nishatabad Board of Revenue (FBR). the energy crisis and it is making sincere Powerhouse has been put into operation efforts to solve this issue at the earliest to end unscheduled load shedding. i) Zero rate of customs duty on such on war footing basis. Federal Minister raw materials and catalysts that are not for Textile Industry Rana Farooq Saeed He said that meeting of January 06 is being manufactured locally and are cur- Khan said this while addressing a gather- exclusively dedicated to the issue of gas rently subject to 5 percent customs duty ing of traders, businessmen, industrial- and electricity. “We would not only take is supported. ists and textile exporters in Faisalabad appropriate decisions but also ensure Chamber of Commerce and Industry 100 percent implementation of these ii) Import of plant and machinery at 5 (FCCI) here on Sunday. decisions”, he asserted.
Page - 39 Industrial Option January 2009 | industrialoption.com News & Views line and control the illegal LPG retail have been very different. “It was very Federal Minister for Textile Industry business in the country’s urban centres naïve of us to think that government Rana Farooq said that issues relating to despite opportunity to do so by pro- policy is meant to be implemented.” the resolution of R&D (Research and moting establishment of LPG Autogas Develop-ment), decrease in banks’ mark- stations, Business Recorder learnt here He further said that in February, the up and access to various international on Saturday. then Petroleum Minister Asif had publicly markets for Pakistan textile products committed to reviewing the LPG autogas are also in the pipeline and would be Sources in the Ogra said that like in the policy to make it more conducive for in- resolved without any further delay. He US, UK and even India, LPG is also used vestment, and bring it in conformity with said that a representative of the busi- as an automotive fuel in Pakistan and, internationally-prevalent safety standards ness community would also be inducted in fact, “it is estimated that well over 50 which it currently is not. Earlier this in the Body of Directors (BODs) of percent of all LPG available in Pakistan month, Advisor to Prime Minister on FESCO (Faisalabad Electric Supply Com- is being consumed in the automotive Petroleum & Natural Resources Dr Asim pany) to streamline the issues pertaining sector.” Hussain had also asked Ogra to review to the load shedding of electricity. the policy. But the status quo continues They said that unlike other countries, amid reports of unchecked LPG black He asked representatives of textile LPG for vehicles in Pakistan was only marketing at retail level across Pakistan. related organisations to attend a high available at illegal LPG decanting points level meeting of January 06 and give their that pose danger to public life and prop- No load shedding from positive suggestions in resolving the erty. These illegal decanting points are prevailing issues. also prone to other malpractices, includ- February: Ashraf ing hoarding and profiteering. Minister for Water and Power Raja Per- Earlier Mian Hamid Javaid president vaiz Ashraf on Sunday said load shedding FCCI in his address of welcome ex- They said that LPG Autogas Policy was would be exterminated completely from plained the problems being confronted notified in September 2005 with the the country from February 2009 up to by the textile industry and demanded expectation that formalisation of LPG the advent of summer season. Talking to additional quota of electricity and gas to retail business would lead to eradication a private TV channel, he said the short- cater to the needs of its industries. of LPG decanting points and provide fall of 4,500MW has been narrowed motorists with safe and professional upto 2,500 MW in last 24 hours due to Mian Javaid Iqbal former president FCCI purchase environment. Fasih Ahmed of prudent measures taken to cope with also addressed the meeting. Senior LPG marketing company, Lub Gas, told the situation. Punjab Minister Raja Riaz Ahmad, Mian Business Recorder that “it had also been Muhammad Latif former chairman FIED- expected that the stations, being set up Elaborating, he said, the independent MC , Mian Muhammad Yousuf chairman by licensed LPG marketing companies, power producers have been paid Rs 700 Pakistan Textile Exporters Association, would help maintain lower retail prices”. billion thus ensuring increased power and others representatives of trade and generation from them. He said the situa- industrial bodies were also present. He said that after a lapse of more than tion was not as bad as being propagated. three years, not a single LPG Autogas The shortfall has been narrowed upto No more unannounced station was operating in Pakistan. “The 2,500 MW as compared to 4,200 MW LPG industry maintains that is evidence during the same period last year. outage from Saturday of serious flaws in the policy, which im- night: Pepco poses onerous conditions related to the Various short and long term measures size and location of proposed stations are being contemplated to tackle the There will be no more unannounced that exceed standards used in the de- menace of load shedding in the country, power load-shedding across the country veloped world” he said, and added that he said and added that a Turkish compa- from Saturday night, Spokesman of Pa- “We are seeing a hear-no-evil, see-no- ny would start rental power generation kistan Electric Power Company (Pepco) evil attitude on the part of the relevant from ship stationed in Karachi. Tahir Basharat Cheema assured on governmental agencies. “ Saturday. Talking to a private TV channel, Kohala, Neelum-Jhelum hydro projects he said the company has made sched- He said that his company has construct- have already been started while Bhasha- uled load management as its top priority ed two LPG autogas stations in Lahore Diamer dam projects would be initi- on the directives of President Asif Ali in line with US standard NFPA58 at a ated soon aiming to exterminate load Zardari. cost of Rs 50 million, but Ogra had not shedding forever. Pervez Ashraf appealed allowed these to commence business, to the customers to conserve energy ignoring the betterment of the public in order to reduce the power deficits, Ogra failed to control il- and illegal filling of the LPG. legal LPG business thereby reducing load shedding. He said that had these stations not been The Oil and Gas Regulatory Authority stranded, LPG pricing in Lahore would (Ogra) has made no efforts to stream-
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New Age Cables (Pvt.) Ltd. Raising Black Flags - Protest Against Wapda
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http://www.scci.net.pk I valuated my coins and Got Pakistan...
Soul of Quaid asking present leadership to valuate their coins to build Pakistan...
Courtesy: Sheikhupura Association of Industry