Ogra pushing country towards another crisis: PEW

Ogra decision to put a mln vehicles out of service, hurt 80m commuters

Daily life badly hurt by the decision taken to please LPG mafia

Sept 19

The Pakistan Economy Watch (PEW) on Thursday said Oil and Gas Regulator Authority (Ogra) is pushing country towards another severe crisis on the behest of powerful LPG mafia.

The hydrocarbon regulator has issued another illegal order asking provinces to remove all the CNG cylinders from the commercial vehicles disregarding the fact that they have been cleared by almost a dozen of other government departments, said Dr. Murtaza Mughal, President PEW.

He said that all the provinces, especially Punjab has started acting upon the unlawful and unclear directives of the Ogra without considering its outcome.

The controversial decision has left owners of Toyota Hiace, Suzuki pickups and taxis on the mercy of police and provincial transport authorities. CNG cylinders are being removed from hundreds of vehicles while hundreds others ferrying masses have already gone off the road indefinitely, he said.

Dr. Murtaza Mughal said that Ogra wants to destroy the transportation system in Pakistan as around one million vehicles operating commercially are using CNG fuel while 80 million use public transport fuelled by the alternative and clean energy.

Commercial vehicles consume a lot of gas which have forced them to install additional cylinders due to CNG loadshedding, he said adding that nowhere in the world there is any law limiting the number of CNG cylinders or specifying their location in vehicles.

However, Dr. Mughal said, the regulator has been playing negative role by violating its own rules for petty interests, it has failed to make any law or ensured amendment in the existing CNG laws in the last 21 years.

Supreme Court in 2009 directed massive conversion of commercial transport on CNG to cut down pollution in urban centres which also reduced oil import bill.

He called upon the CNG operators to defy the orders which are part of a conspiracy to deprive masses of economical fuel.

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Govt asked to promote new investments in energy sector

No poverty reduction sans ample energy

Provision of energy imperative to transform lives

Energy enables people to work their way out of poverty

August 19

The Pakistan Economy Watch (PEW) on Sunday asked the government to promote new investments in the energy sector by introducing better regulations as poverty cannot be reduced in presence of energy scarcity.

Access to energy is imperative to transform lives which is not getting proper attention on the national and global level as majority of Pakistanis as well as a third of the world’s population has no access to modern energy services, it said.

Tens of millions in Pakistan and 1.3 billion people worldwide are still without any form of electricity and 2.7 billion people still cook over open fires despite availability of solutions, said Dr Murtaza Mughal, President PEW.

Estimates say in the next seventeen years three billion will cook with traditional fuels, more than 30 million people will have died due to smoke-related diseases and hundreds of millions will be confined to poverty due to lack of energy, he informed.

Of those who don’t have access to modern energy around 70 per cent are women who spend significant time and money to obtain energy that is not only unpredictable, expensive, unsafe, and highly polluting, he said.

Dr Murtaza Mughal said that lack of access to electricity also prevents the development of key social programmes like education, health, sanitation and provision of clean drinking water, continuing a cycle of poverty that is very difficult to break.

He said that energy is vital to escape poverty but unfortunately lack of interest on the part of governments has left a third of the world’s population has no access to modern energy services which is impeding global growth.

He said that Pakistan government should boost efforts to tame energy crisis and promote new investments as provision of electricity is linked to development of agriculture, industry, trade,  jobs, medicine, sanitation and water purification.

Every dollar invested in a solar energy generates more than $46 in economic benefits in the first year alone; it results in a stronger economy, a healthier population, and enables parents to ensure a bright future for their families.

He said that energy enables people to work their way out of poverty, it provides better access to basic services while improving health and wellbeing of everyone, especially that of women and children.

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Pakistan cannot afford luxury of wasting Rs500 billion annually on SOEs

PML-N led government can steer the country out of economic mess

SOEs proved to be white elephants in absence of proper accountability

August 08

The Pakistan Economy Watch (PEW) on Thursday said Pakistan cannot afford the luxury of wasting Rs. 500 billion annually on inefficient state-run-enterprises (SOEs).

Almost all the entities created by the government in order to partake in commercial activities on the government's behalf have proved to be white elephants in absence of a proper accountability mechanism, it said.

Sucessive government have been mixing politics with business which have transformed state-run corporations into most unproductive segment wasting almost Rs 1.5 billion daily, said Dr Murtaza Mughal, President PEW.

Governemnt should bring an end to political interference in these corporations or privitize them on fast pace if it cannot shield these from unnecessary interventions, he added.

Dr Murtaza Mughal said that the environment of majority of corporation has deteriorated to an extent that reputed professionals from private sector fail to give positive results when entrusted for top slots.

Time has come when we should admit that these valuable assets have become burdensome possession while the cost of upkeep has surpassed its worth, he added.

He said that PML-N led government can steer the country out of economic mess to put it on the path of sustainable economic growth for which bold decisions are needed.

Lauding the difficult decision like upward revision of electricity tariff and petroleum prices, he said that more meaningful reforms are needed like that announced for the ailing energy sector.

Governemnt should also revisit politices regarding taxation, exemptions, and subsidies which have eroded its ability to initiate maga projects without foreign aid and spend more on welfare of masses, said Dr Murtaza Mughal.

Good governance, honest measures, true accountability and just taxes on all sectors including agricultural income can help government earn  reputation which is essential to push reforms agenda without opposition from masses.

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Rising dollar and falling rupee exposes Govt, IMF deal

Rising dollar and falling rupee exposes Govt, IMF deal

July 26

The Pakistan Economy Watch (PEW) on Friday said rising dollar and falling rupee has exposed the secret deal between government and IMF to depreciate the local currency.

The sliding rupee has also exposed expertise of the economic managers of the incumbent government, it said.

The deal between government and the lender is also evident from the role of SBP which has been reluctant to take concrete steps to stabilise the exchange rate, said Dr Murtaza Mughal, President PEW.

He said that depreciation in the value of rupee will invite inflation as Pakistan heavily relies on imports. Moreover, it will add to the foreign debt and make life of masses miserable.

Overseas Pakistanis will prefer to send money through hundi as the difference in interbank and open market rate is at unprecedented level, he added.

Dr Murtaza Mughal said that there was no justification in the rapid erosion of rupee as overall economic situation was calm, indicators are as usual and there was not major change in the position of forex reserves.

A check on Dubai-bound flights can expose all the elements involved in flight of capital, hoarding of dollars and turning of black money into white, an evidence of blooming grey economy, he informed.

Exchange rates should not be taken lightly as it is among the most analysed and forecasted indicators in the world. The currency markets are the most liquid in the world with a daily turnover of close to $2 trillion as compare to $ 70 billion on the New York Stock Exchange.

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Teacher demand, supply gap threatens future: PEW

Teacher demand, supply gap threatens future: PEW

Cut in Govt spending, int’l aid jeopardises future of millions

July 21

The Pakistan Economy Watch (PEW) on Sunday said increasing gap between demand and supply of teachers pose a threat to Pakistan’s future.

Student-teacher ratio as well as teacher recruitment practices, teacher management, teacher attendance, teaching practices and absence of performance monitoring system in majority of schools is resulting in low student learning, it said.

Pakistan’s prosperous future can only be ensured if it is realised that every child needs a teacher for which creation of around fifty thousand new teaching posts in next few years are required, said Dr Murtaza Mughal, President PEW.

He said that the supply of teachers is failing to keep pace with the demand, the world needs 6.8 million teachers to ensure every child’s right to basic education, he added.

Globally, 5.1 million teachers are expected to leave the profession in next two years which and must be replaced, said Dr Murtaza Mughal.

He said that progress on reducing the number of out-of-school children has stalled. As of 2011, 57 million children of primary school age and another 69 million of lower secondary school age were out of school threatening goal of universal primary education (UPE) by 2015.

The situation is most extreme in sub-Saharan Africa, and Saarc region where the school-aged population continues to rise which call for minimum 10 per cent increase in supply of teachers every year to meet the goal of UPE, he informed.

Policies and initiatives to address the problem of exclusion from education and reduce inequalities remain inadequate in many countries including Pakistan, said Dr. Mughal.

Government spending as well as international aid to has seen cuts due to multiple reasons which has jeopardised future of millions of children; it has resulted in two per cent increase in global primary net enrolment rate since 2005.

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Internet access rate in South Asia disappointing: PEW

Internet access rate in South Asia disappointing: PEW

June 25

The Pakistan Economy Watch (PEW) on Sunday said a third of the world’s population has online access to the Internet with South Asia having lowest penetration rates of 9 per cent.

Thirteen out of every 100 people in Sub-Saharan Africa have the Internet access.

Mobile phones and internet have become integral part of development but South Asia is still lagging behind in the rapidly changing world, said Dr Murtaza Mughal.

According to latest World Bank’s report, mobile phone subscriptions have almost doubled every two years since 2002 to hit mark of 5.9 billion subscriptions globally, almost one for every person if distributed equally, he said.

In South Asia, 69 mobile phone subscriptions per 100 people were recorded in 2011, up from 8 in 2005. The developed economies had this rate 8 years ago.

Sri Lanka and India experienced an increase in mobile subscriptions of over 50 per cent to become the biggest contributors to the region’s growth rate.

The number of Internet users worldwide has increased to 33 users per 100 people in 2011, from around 12 per 100 in 2003.

Developing economies in Europe and Central Asia including the Russian Federation had the highest penetration rates with 42 of 100 people had access to the Internet, still 9 years behind high-income economies.

However, developing regions are quickly catching up to high-income economies by increasing internet access using mobile phones. The number of mobile-broadband subscriptions in developing nations increased from 43 to 472 million in four years.

Africa was on the top where subscriptions increased from 14 million to 38 million in two years.

Many developing economies may be crossing developed economies by combining the growing access to mobile technology with Internet access to improve access to communication and information, said Dr Murtaza Mughal.

Internet access rates show a greater digital divide between developing and developed economies than mobile subscriptions for which positive decisions are needed, he said.

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Proper usage of borrowed money real test of the government

Nothing wrong in getting IMF loan as last option

Decision of equitable loadshedding questioned

July 08

The Pakistan Economy Watch (PEW) on Monday said securing IMF loan was not a success unless the government ensures proper utilization of borrowed money to the satisfaction of all stakeholders.

Real test of the government will be to best utilize the money and fulfill promises with the international lender to improve economy and boost credibility, it said.

Pakistan was left with no option but to accept IMF conditions or face a default as the former government left Rs. 14.3 trillion of domestic loans, Rs. 500 billion circular debt, external financing requirements of $ 11.5 billion and budget deficit at 9 per cent, said Dr Murtaza Mughal, President PEW.

Pakistan would have been a developed country if if half of the money borrowed in past was utilized properly, he said adding that asses were expecting a good decision on taxing agricultural income to balance the taxation regime which hasn't happened.

Moreover, he said, many former governments ignored economical ways to secure energy and preferred the costly western solutions which has resulted in an energy mix where country is using 75 per cent of costly fuels and only 25 per cent of cheap solutions.

Dr Murtaza Mughal said that this policy hiked the power generation cost to Rs. 14 per unit in which Rs. 5 is given as subsidy which is simply unsustainable for an economically challenged country like Pakistan.

He warned that energy theft has touched Rs. 250 billion mark which will register increase if the government continued to ignore the issue.

Decision of equitable load-shedding across country should be revisited. The areas with high theft ratio theft should face more load-shedding while the consumers of the regions with minimum theft should enjoy better power supply, he opined.

Such a decision will reward honest consumers and push people to point towards power thieves which will improve overall situation, said Dr. Mughal.

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Pakistan inching towards food crisis: PEW

Pakistan inching towards food crisis: PEW

July 07

The Pakistan Economy Watch (PEW) on Sunday asked the government to act immediately as country is inching towards severe food crisis.

The food insecure masses of Pakistan will have to pay the heavy price if government continued to delay decision regarding import and export of wheat as local stocks are not enough to meet food requirements until the next crop, it said.

The situation of wheat reserves is far from satisfactory as around 7.5 million tonnes of commodity with the federal and provincial governments is insufficient, said Dr Murtaza Mughal, President PEW.

According to an independent estimate, Pakistan produced a total of 22.8 million tons of wheat in 2013 which was 2.2 million less than the set target of 25 million tonnes, he added.

He said that further delay in taking the right decision will harm masses and government while hoarders will stand ultimate benefices as usual.

Dr Murtaza Mughal said that increasing smuggling, hoarding and exports have put additional strain on wheat reserves which can be controlled through a ban on exports which has reached above 1.5 million tonnes.

On the other hand, wheat imports have become meaningless for many in presence of five per cent WHT which must be abolished or reduced to avert threat of food insecurity.

Otherwise, he said, soon there would be a shortage only to benefit hoarders who remain untouchable for the authorities concerned.

Dr Murtaza Mughal said that currently ample quantity of wheat is available in the international market at reasonable price but delay in the decision will jack up international prices for which masses will have to pay.

The current situation is test of the new government while a failure will have a heavy political cost, he said.

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Half-truth by energy officials amounts to whole lie

Govt misleading masses on CNG issue

July 03

The Pakistan Economy Watch (PEW) on Wednesday alleged that top government officials have started a campaign against CNG sector by misguiding masses by presenting doctored figures.

The incumbent administration is following the footsteps of former government by holding back the truth hidden from the common people to fulfil their objectives without public uproar, it said.

Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has started speaking the language of influential lobbies who have thrown the country into unmanageable energy crisis for their profits, said Dr Murtaza Mughal, President PEW.

He said that government seems to have planned to get rid of the world’s largest CNG industry to please influential sector and continue the unjust distribution of natural gas.

The minister has claimed that over 30 per cent CNG stations are involved in gas theft without mentioning names of the operators or any action taken against them or pointing towards officials of gas utilities involved, he said.

Dr Murtaza Mughal said that if the recent assertion of Mr Abbasi is accepted and half of the natural gas consumed by these CNG stations is considered to be stolen, still it would make mere one per cent of the total natural gas produced in the state.

Shahid Khaqan Abbasi on June 07 said that 11 per cent of the natural gas is wasted to line losses, leakages and theft. He should not only focus on CNG sector and let people know about other influential sectors involved in the theft of the rest of natural gas.

Dr Murtaza Mughal said that only politically connected CNG operators can steal natural gas with the connivance of gas officials while any action against them seems to be improbable any time soon.

He said that baseless propaganda against CNG sector and its consumption could be a conspiracy to justify unjust distribution of hydrocarbon resources, support petroleum and liquid gas mafias, lift captive power mafia and pave way for personal gains.

Many countries employ qualified energy managers to ensure smooth flow while here all the energy related issues are left to politicians and incompetent bureaucracy who have always danced on the tune of powerful energy mafia, said Dr. Mughal.

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Decision to compromise service, expansion and 3G auction

PEW questions wisdom behind imposing addition tax on telecom sector

Decision to compromise service, expansion and 3G auction

Heavy taxes on telecom sector unjustified: Dr Murtaza Mughal

June 30

The Pakistan Economy Watch (PEW) on Sunday questioned wisdom of the economic managers of the government behind the decision to slap additional tax on the telecom industry.

The short-sighted decision will increase burden on masses, add to problems of telecom sector and hurt the reputation of PML-N, it said.

An increase of 5 per cent withholding tax can have an impact on foreign investment in the telecom sector; it can hurt network expansion plans of the operators and compromise quality of the service, said Dr Murtaza Mughal, President PEW.

He said that the decision based on fulfilling tax collection target of Rs 2.475 billion can reduce communication between people paving way for poverty and other problems.

Dr Murtaza Mughal said that taxing the already heavily taxed sector can have undesirable impact on plan of the government to reduce budget deficit through auction of 3Glicence.

He said that former government also unilaterally imposed Sales Tax on mobile phones hurting 85 per cent of the poor and middle-class consumers only to get around 50 per cent decline in sales.

He informed that India has imposed 10.3 per cent tax on telecom sector while Bangladesh has levied 15 per cent taxes on it while in Pakistan all the taxes and duties will be 41.50 per cent from July 01 adding to the miseries of masses.

Telecom sector has contributed Rs510 billion as taxes in the last nine years but successive governments have squeezed the sector considering it a cash cow to hide their own inefficiencies, he observed.

Despite all odds, Pakistani consumers still enjoy economical calling rates in the entire Saarc region; however, days of affordable communications seems to be over, said Dr. Mughal.

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Budget to widen gap between rich, poor: Dr Ikramul Haq

Budget a threat to economy, society: int’l tax experts

Budget to widen gap between rich, poor: Dr Ikramul Haq

Govt yet to provide economic justice to masses: Huzaima Bukhari

Budget pushing majority to abject poverty: Dr Murtaza Mughal

June 25

International tax experts Dr Ikramul Haq and Huzaima Bukhari on Tuesday said current budget will widen the gap between rich and poor which is detrimental for society andeconomy.

They said that the budget indicates failure of the government to provide economic justice to the masses by taxing the rich.

Talking to Dr Murtaza Mughal, President of the Pakistan Economy Watch, Dr Ikramul Haq and Huzaima Bukhari said that budget lacks focus on welfare programmes and it will impede poor from moving up economically.

The budgetary measures will not redistribute wealth and income in the society but benefitting the affluent, the tax experts said.

Government efforts will not help overcome economic crisis but it has successfully pushed majority to another crisis in this era of high inflation, they remarked.

They opined that government can bring an end to lucrative SRO business, amend the Constitution and bring all kinds of income including from agriculture in the federal ambit.

Dr Ikramul Haq and Huzaima Bukhari further said that taxing education amounts to barring the children who are at the bottom to do better than their parents which is unfortunate.

There is a complete lack of understanding in the government that education can be used as effective tool for upward social mobility. 

Speaking on the occasion, Dr Murtaza Mughal said that the system has been damaging poor segments of society who remain mired in abject poverty.

He said Pakistan needs meaningful redistribution policies that can uplift the downtrodden but this is not preferred by rulers and the budget is an example of it.

Dr Murtaza Mughal said that the claim of the government to keep national interests supreme seems to be a political slogan as interests of rich are being watched and protected adding that revenue measures can go wrong anytime.

The budget document is long on rhetoric and short on action which overestimates revenues, stock market and wholesalers and retailers have been taxed lightly, formal sector has been burdened.

Salary increase and fertiliser import will broaden the deficit by Rs 160 billion, said Dr. Mughal.

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Captive Power lobby biggest hurdle in resolution of energy crisis

Captive Power lobby biggest hurdle in resolution of energy crisis

June 27, 2013

The Pakistan Economy Watch (PEW) on Thursday said influential lobby of the owners of Captive Power Plants (CPPs) which is wasting gas worth Rs70 billion per annum is one of the biggest hurdle is the resolution of the energy crisis in Pakistan.

The incumbent government seems helpless as the powerful lobby which has been getting natural gas at dirt cheap prices since last five years without the permission of Ogra and Nepra is still enjoying unprecedented influence in the corridors of power, it said.

Dr Murtaza Mughal said that those who are getting natural gas at 91 per cent discounted rates as compare to furnace oil are being patronized despite the opposition by Planning Commission and Ogra while they have sent packing four federal secretaries which has terrified the entire bureaucracy.

A former Advisor petroleum changed gas provision priority list for three times within twenty days illegally and without the consent of concerned institutions including Council of Common Interests, he said.

Murtaza Mughal said that gas load management policy available on SNGPL clearly indicates that masses are on the top of the priority list while CPPs are at the bottom which was violated by the former government while incumbent government seems in no mood the correct the matter.

Rules clearly indicate the CPPs can get gas when it is surplus, its usage remains within 1 mmcfd and the owner of any CPP invests Rs500 million minimum. Not only all these conditions are being violated but some owners of the primitive CPPs have closed down their units while selling electricity to others to distribute spoils with government officials.

He said that the situation warrants action which has been put on the backburner since long which is increasing plight of masses and budget deficit resulting in severe energy crunch.

It may be mentioned that government figures reveal the number of CPPs at 113 which are getting 450 mmcfd gas daily to waster 326 mmcfd which translated into annual loss of Rs70 billion.

The gas load management policy of 2013 has not been approved by the competent forums and its imposition could be a bid to sweep facts under the carpet which include unholy collusion between the owners of CPPs and top government functionaries. 

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Inaction increasing mistrust among foreign donors

Former IGP KPK embezzled Rs35 mln allocated for peace initiatives

Inaction increasing mistrust among foreign donors

June 23

The Pakistan Economy Watch (PEW) on Sunday said a former Inspector General of Police Khyber Pakhtunkhwa embezzled funds provided by international community to battle terror.

American and Australian government granted Rs 35 million to police for peace initiatives through mediation, reconciliation, alternative dispute resolution and de-radicalization which were wasted, said Dr Murtaza Mughal, President PEW.

He said that third-party independent evaluation ordered by USAID and AUSAID revealed that nothing was done on ground and all documents regarding activities and expanses were bogus.

All the record presented before the auditors was found fabricated which failed the initiative to reduce crimes and disputes in the target areas thus misappropriating the money of American and Australian tax-payers, he said.

Dr Murtaza Mughal said that NGOs involved in the deal were blacklisted while no action could be initiated against the police official who enjoyed full backing of the ANP.

A lot of damage to life and property of masses and security forces could have been averted if the money earmarked for reconciliation was not siphoned off, he said.

Dr Murtaza Mughal said that no action has been initiated against the culprit despite the fact that ANP is no longer in the power which is increasing mistrust among foreign donors.

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SECP’s move to update rules and regulations for NGOs lauded

PEW proposes NGOs Regulatory Authority

SECP’s move to update rules and regulations for NGOs lauded

Humanitarian support tied to transparency, accountability of non-profits

June 11

The Pakistan Economy Watch (PEW) on Tuesday proposed establishing a powerful NGOs Regulatory Authority to monitor and streamline the activities, funding and expenses by non-profits.

At present no one is fully aware of what is happening in the development sector paving way to suspicions at home and abroad.

Lack of proper reporting and scrutiny procedure by governmental has been raising concerns about overlapping of activities, wastage of efforts, misuse of resources, and improper aid distribution, said Dr Murtaza Mughal, President PEW.

The government should rationalize the process of registration of NGOs as it has no record of the exact number of civic groups while different NGOs are getting registered at different federal and provincial departments, he said.

Dr Murtaza Mughal said that the process of registration should be entrusted to a single federal department because different departments registering civil society groups do not share data.

He further said that there must be a dependable web portal where all the local and international donors and non-profits can upload all the particulars of the projects, grants, activities, and expanses for public information and scrutiny.

After the floods of 2010; NDMA took a pioneering initiative of introducing Single Reporting Format (SRF Pakistan) but after archiving the results of hundreds of humanitarian activities and training thousands of NGOs & iNGOs staff members; this reporting system, developed by iMMAP, was abundant early last year due to obvious reasons.

Dr Mughal said that newly-elected Government should utilize IT for reporting and spreading information to achieve uniformity and coherence in data sharing during emergencies and other non-emergency situations.

He appreciated the efforts of the SECP in developing better regulatory environment, addressing issues confronting regulation of the NGOs sector.

Calling for a major review of the situation said that Pakistan will not attract foreign donors unless it ensures proper transparency, accountability and good governance in the civil society organizations and within the government to gain credibility.

Consultation is imperative during the process to allay fears of restriction of the legitimate funding and operations of independent groups.

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Extra taxes on tobacco industry in upcoming budget suggested

PEW criticizes underinvestment in tobacco control

Extra taxes on tobacco industry in upcoming budget suggested

Smoking linked to economic losses and burden on health-care system

June 02

The Pakistan Economy Watch (PEW) on Sunday asked the incoming government to take serious steps including imposing additional taxes on tobacco industry in the upcoming budget to discourage its growing usage.

Despite all the half-hearted efforts including the Anti-Smoking Ordinance, tobacco use and exposure to second-hand smoke continues to grow and remained the leading preventable cause of death and disease, said Dr Murtaza Mughal, President PEW.

It also results in productivity losses especially among the less fortunate people of the society, economic losses, and a substantial burden on the health-care system which can be reduced, he said.

Dr Murtaza Mughal suggested that government can slap additional taxes on tobacco industry in the upcoming budget as an effective tobacco control measure which can discourage its use to an extent that it is no longer a significant public health problem.

Authorities can also consider amendment in the existing laws which have not proved very effective to discourage the use of tobacco to reduce illness, disability, and deaths.

Comprehensive ban on tobacco advertisement and breaking the tobacco marketing network is imperative to save thousands of lives across the country, he said.

Dr Murtaza Mughal said that the undeterred tobacco industry is carrying out hidden promotional activities despite ban while the figures show that banning tobacco advertising and sponsorship is the most cost-effective ways to reduce its demand.

Criticising underinvestment in the tobacco control, he said that for every US$9100 received in tobacco taxes, only $1 was spent on tobacco control in the low-income countries.

Tobacco kills one hundred thousand people in Pakistan annually and left millions affected. Globally it kills some six million people each year including six hundred thousand non-smokers dying by inhaling second-hand smoke.

China has more tobacco consumers than any other country estimated at 301 million; India is second with 275 million users. By 2030 tobacco will kill eight million people per annum majority will be from underdeveloped countries. Mostly, tobacco kills people at the height of their productivity, depriving dependants of their earners and nations of their workforce.

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Unexplored potential of overseas Pakistani can boost economy: PEW

IWCCI proposes simple step to boost forex reserves

Unexplored potential of overseas Pakistani can boost economy: PEW

Islamabad: Dated: June 01

The Islamabad Women's Chamber of Commerce and Industry (IWCCI) on Saturday proposed simple and implementable step to boost dwindling foreign exchange reserves.

There are over ten million Pakistanis working in around seventy-nine countries including USA, UK, Canada, UAE, Saudi Arabia etc.

Government can use the potential of overseas Pakistanis to augment forex reserves in order to bring meaningful economic reforms, said Farida Rashid, President IWCCI.

Talking to Dr Murtaza Mughal, President Pakistan Economy Watch, she said that friendly schemes must be introduced to restore confidence of overseas Pakistanis.

Government can announce a scheme in which if a person sends remittance of up to one million dollars, he/she will be eligible to bring a duty-free automobile in Pakistan, she said.

Farida Rashid said that if 10,000 persons respond to this scheme which constitutes to 0.1 per cent of the total overseas Pakistanis, the government can get ten billion dollar in foreign exchange.

As per the Economic Survey of Pakistan of 2011-2012 total number of the imported cars and jeeps stood at 1,079,856. If ten thousand overseas Pakistan bring their tax-free automobiles it will increase the existing market by only 0.93 per cent, she said.

At the occasion, Dr Murtaza Mughal said that if government can introduce such a short term scheme, it can bring economic reforms and can boost the economy without taking help from any of the foreign monetary institutions.

He said that incoming government should fully explore the potential of overseas Pakistanis, a great asset.

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Iranian company offers quick solution to Pakistan’s energy crisis

Iranian company offers quick solution to Pakistan’s energy crisis

MAPNA ready to invest heavily across Pakistan

May 31^st

An Iran based global company has offered immediate solution to the Pakistan’s prevalent power crisis which has pulled economy down and crippled general life.

Iran Power Plant Projects Management Company (MAPNA), the sixth largest power company in the world says that it can bridge gap between demand and supply of electricity within months.

A delegation headed by Muhammad Hussain Baqri, head of international communications MAPNA said this while talking to Dr Murtaza Mughal, President of the Pakistan Economy Watch (PEW).

He said that Iran’s installed capacity is 70000 MW out of which MAPNA is providing 67000 MW and we can easily provide up to 10000 MW to Pakistan on most economical rates as compare to any neighbouring country. Pakistan’s current electricity shortfall stands at 7000 MW.

Baqri said that MAPNA, having 39 subsidiaries, has its own gas fields and power plants construction facilities. It has been operating in 18 countries and it can also build power plants having international standards within 15 months with 20 per cent discounted rates.

He said that the 30 billion euro company has also interests in oil and gas, wind power and railways and it is willing Pakistan improve its railways.

The delegation also expressed interest in the setting up power plants of 1000 MW capacity and to supply and install 25 MW small power plants on ground as well as on barges to help Pakistan in overcoming the energy crisis on urgent basis

At the occasion Dr Murtaza Mughal welcomed the company to start operations in Pakistan and asked them to forward solid proposals for maintenance of power plants as their ability has been compromised due to neglect spanned over a decade.

He said that Pakistani policymakers should consider negotiating construction of large scale power plants on a turn-key basis with Iranian enterprise.

A new business friendly government is set to take charge which will improve overall investment environment in Pakistan and boost confidence of local and foreign investors, said Dr Mughal. 

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Terrorism to resurface if tribal areas ignored by policymakers

Next Govt asked to focus on reviving industry in tribal areas

Terrorism to resurface if tribal areas ignored by policymakers

Call for facilitating businesses in tribal areas to ensure peace

May 29

The Pakistan Economy Watch (PEW) on Wednesday asked the next government to escalate the revival of industrial activities in tribal areas.

After years of unrest some peace has been restored and life has becoming normal which calls for renewed efforts to support people of tribal areas living miserably, it said.

New wave of terrorism can resurface in the tribal areas if government continued to ignore the revival of business activities in Fata and Pata, said Dr Murtaza Mughal, President PEW.

He said that business community and overseas Pakistanis should also invest in militancy-hit and cash-starved tribal areas while government should ensure conducive environment, proper communication facilities and smooth supply of energy.

Government should support indigenous industry and businesses, develop public private partnerships, frame proper for setting up industrial estates and zones, hold expos, seminars, job fairs and other activities to promote investment in tribal belt, he said.

Similarly, Dr Murtaza Mughal said, banks should extend their coverage and introduce micro credit schemes in the neglected areas.

Despite vast resources, the tribal region has limited economic base to cater to the basic needs of millions of tribal people because of the neglect spanned over decades, he observed.

Dr Murtaza Mughal said that many industrial concerns have been closed in tribal territory while few have luckily been surviving. Few years back there were fifteen vegetable ghee units in tribal belt while the number has come down to two catering for one sixth of the demand in tribal areas.

He criticised the ghee producers of the settled area who are conspiring against the two surviving units to impose certain levies in violation of the constitutional immunity to get them closed and seize the entire market of the tribal area.

The FBR should not pay heed to the demand Pakistan Vanaspati Manufacturing Association forwarded through letter No. PVMA/1097/FBR/2013 as it will be illegal and unconstitutional which will deprive hundreds of their jobs, demanded Dr Mughal.

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