Azadi? IMF agrees Pakistan can seek $6.6 bn: Finance Ministry officials

[NasNY]

IMF agrees Pakistan can seek $6.6 bn: Finance Ministry officials

ISLAMABAD: The International Monetary Fund has agreed that Pakistan can seek a loan package worth $6.6 billion, two top finance ministry officials said on Monday, a boost for Prime Minister Nawaz Sharif as he seeks to fix the moribund economy.

The Fund had settled on an initial package of $5.3 billion after an IMF delegation held weeks of talks in Pakistan in July. Pakistan had requested $7.2 billion.“The IMF has raised its offer following further consultations in the US and now agreed to $6.6 billion.

The official announcement will come very soon,” said a top finance ministry official, requesting anonymity because he was not yet authorised to speak on the record. The IMF’s executive board will formally approve the package for Pakistan sometime in early September, as long as Pakistan has made some fiscal reforms, the IMF said on its website.

The government has already slashed costly subsidies on electricity and sent out notices to 10,000 delinquent taxpayers lastmonth as part of the conditions set by the IMF.

The Saudi Islamic Development Bank Group Ltd has also pledged a $997 million credit line and a $200 million trade facility for Pakistan to buy petroleum products, said Shafqat Jalil, the Finance Ministry’s spokesperson.“We will end up with a shortfall of $600-700 million, which we will bridge through other donors like the ADB (Asian Development Bank),” Jalil said.

The ADB, one of Pakistan’s major lenders, estimates that Pakistan needs $6 billion to $9 billion to meet its obligations, including about $5 billion in outstanding debt on an earlier $11 billion IMF loan package that was suspended in 2011.

http://images.thenews.com.pk/13-08-2013/ethenews/t-24762.htm
On 14 August do we have AZADI?

 

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Economy to improve due to positive measures: Dar

ISLAMABAD: Finance Minister Ishaq Dar has said that the economy will improve due to the positive measures taken by the new government.
He said this during a meeting with High Commissioner of Mauritius to Pakistan M. Rashad Daureeawo on Monday morning.“We have taken some positive initiatives that were necessary to stabilise the country’s economy,” he said. “The real objective of the government is to bring structural reforms in the economy to put it on the path of sustainable economic growth.”
Daureeawo reiterated that Mauritius would continue to support Pakistan at international forums. He also extended an invitation to Dar to visit Mauritius as well as convene the joint ministerial commission of both the countries.

http://www.thenews.com.pk/Todays-News-3-195513-Economy-to-improve-due-to-positive-measures:-Dar

 

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India plans to grab more Pak water as rulers look on

ISLAMABAD: Institutional incompetence and apathy of successive rulers and key water managers of the country have encouraged the presently warmongering India to further its water offensive against Pakistan.
Besides constructing dams, one after the other, on Pakistani rivers in violation of Indus Waters Treaty between the two countries, the latter is now hotly pursuing a project to link Chenab with the Indian Beas River.
According to documents the Indian regime had even allocated funds in its Budget 2011-2012 of Ministry of Water Resources of the Government of India, for preparation of a detailed design to link Chenab River with Beas River through Gyspa Dam (being built on Chenab river) to Solong Nala by constructing a 23 kilometers long concrete tunnel.
“It would be a far more serious blow to our water rights compared to the violations like Baglihar, Kishangnga and Ratle projects by India,” a non-governmental Pakistani water expert Arshad H Abbasi said when approached, warning: “If materialised and not stopped, it would be the biggest water dacoity by India.”
Tender for detailed design of Gyspa Dam on Pakistani river, having live storage capacity of one million acre feet, was floated in October 2009. “Now the Dam is ready for construction but there has been no conspicuous reaction shown by the government of Pakistan on this issue,” lamented Arshad Abbasi.
The documents show that the high court of Himachal Pradesh had ruled against the construction of Gyspa Dam following the petition filed by local community and Indian environmentalists and observed that it would create unnecessary conflict with Pakistan on water sharing issues.
In their petition to Governor Himachal Pradesh, the environmentalists of India had even warned, “The Dam site also borders China and Pakistan thereby it is strategically very sensitive. Displacing inhabitants from such strategic areas would invite uncalled security threat.
Further, the Bhaga River which is a tributary of Chenab, whose water usage is governed under Indus Waters Treaty, 1960 with Pakistan. By building this dam would create unnecessary conflict with Pakistan on water sharing issues.’
According to sources, after going ahead with the controversial project of Gyspa Dam India is diverting water of Chenab to Beas River by Building Jyspa Dam on Chenab River at the village in Lahaul and Spiti district, in the Indian state of Himachal Pradesh.
The waters of Chenab River will be diverted into Solong Nala a tributary of Beas River, the source said, adding that the detail project report (DPRs) is under preparation after completing the detail feasibility report.
This project is considered a gross violation of the Indus Waters Treaty, which gave the use of the Eastern Rivers- Sutlej, Beas and Ravi- to India, while giving the use of the Western Rivers- Indus, Jhelum and Chenab- to Pakistan.
As against the apathy of Pakistani authorities to defend and protect the country’s water rights, the environmentalist and local community of Himachal Pradesh started a campaign against Gyspa dam in 2010, which ultimately drew attention of the High Court, which took suo moto notice and constituted a committee on hydro projects, headed by Avey Shukla, additional secretary forest HP.
In its decision on July 20, 2010, the HP High Court categorically directed GOI (Government of India) that “hydro projects above 7,000ft (above tree line) should not be built”. Therefore, the Gyspa dam that is proposed to be built at an altitude of 10,800ft in an ecologically and geologically fragile zone. This goes against the committee’s recommendations, yet violating the judgment of apex court of Himachal Pradesh. Indian Government is going to start Jyspa dam so that water of Chenab River can be diverted to Beas and then ***** River Basin.
Sources demand that there is a dire need to find snakes in our grass to protect and guard the water rights of Pakistan. In the past there have been reports published about the alleged link of Pakistan’s key water managers with India besides the reported alleged deliberate losing of a water dispute with India in the International Court of Arbitration by Pak representatives.
Through its unending violations of Indus Waters Treaty, India has actually launched water war with Pakistan to sabotage the economy of Pakistan. In India, it is said that a team of dedicated professionals at Planning Commission is providing full technical support of Indus Water Commissioner India, whereas in Pakistan tainted water quacks are running the show.

http://images.thenews.com.pk/13-08-2013/ethenews/t-24753.htm

 

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Cement exports to India decline

LAHORE: Cement exports to India hit an all-time low despite all the noise surrounding granting the Most-favored nation (MFN) status to India for the last three years.
Discussions regarding MFN status to India began in 2010. However, in contradiction with moves to open up trade with India, Pakistan’s cement exports to India have since declined by 20.35 percent. On the other hand, demand for Pakistani cement in other regions witnessed a growth of 7.39 percent, said a senior official of a leading cement brand.
The cement industry has been highly anticipating the granting of the MFN status to India. “The industry expected to benefit and grow exports once the MFN status came into place but it seems this decision is not going to be fruitful for the sector,” the official said. He went on to add that exports to India have been failing to gather pace, witnessing a continuous decline since 2010.
According to data provided by the All Pakistan Cement Manufacturers Association (APCMA), cement exports to India stood at 786,672 tons in 2007-08, a number which witnessed steady decline to reach 722,968 tons in 2009-10.
In 2010-2011, cement exports to India sharply declined to 590,104 tons despite talks on removing the negative trade list between the two countries. Exports recorded a slight increase in 2011-2012, reaching to 605,453 tons. But in 2012-13, when Pakistan was on the verge of granting the MFN status to India after receiving assurances that non-trade barriers would be
removed, exports declined further touching an all-time low of 482,214 tons.
Pakistan’s cement industry can gain much from increasing exports to India as demand in the country is still on the rise, particularly in Rajasthan, where the Birla Group is setting up a plant capable of producing 1.5 million tons. It is also reported that domestic demand for cement in Rajasthan is expected to grow at 8-9 percent annually. However, the non-resolution of non-tariff barriers by India stands in the way of any increase in exports.
According to The Hindu, a major Indian newspaper, the possible expansion of Indian cement production by local manufacturers in Rajasthan and catering to the growing demand in Gujarat and Madhya Pradesh would attract the investment of around Rs650-700 crores.
A cement manufacturing company official said that since construction activities in India are about to receive a massive boost due to certain positive measures taken by the Indian government, such as the increase in deductions for home loans up to Rs25 lakh and interest subventions of one per cent to make home loans more attractive, it is high time Pakistani government should realize that the cement sector of the country is being deprived of this benefit.
Besides, the Indian government has reportedly allocated Rs2000 crores for the urban housing fund to provide affordable low cost housing, which will boost cement demand in rural areas. “We are mindful of all such measures which can help our potential exports to India massively, but it is very likely that we will be once again ignored by the Indian government,” the industry insider said.
He stressed that Pakistani authorities should not allow MFN status to India unless India assures its full cooperation and provides equal access to its markets. “Otherwise, this MFN status is simply in favour of India,” he added.

http://images.thenews.com.pk/13-08-2013/ethenews/e-195518.htm

 

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India’s gold guzzling spurs Pakistan to act

NEW DELHI: Indians bought more gold in July than June despite a series of moves by the central bank to strangle supplies, and their insatiable appetite has forced neighbouring countries to take steps to curb their own imports.
India’s gold imports hit $2.9 billion in July, up from $2.45 billion in June, official data showed on Monday, confirming Finance Minister P. Chidambaram’s fears that despite hikes in import duties and steps by the Reserve Bank of India (RBI) to stem supply, demand is on the rise again.
Chidambaram wants to curb gold purchases because they are the most costly non-essential item that India imports and have helped push the current account deficit to a record high, undermining government attempts to stabilise the economy and the rupee ahead of elections.
India imported $2.9 billion of gold and silver in July, up from $2.45 billion in June, and even though that was down a third from July last year, it comes on the back of record imports in April and May and despite rising domestic prices in July. Silver is a tiny fraction of the imports.
While India will almost certainly yield its title of biggest bullion buyer to China this year, jewellers are concerned that imports are still too high for the government’s comfort and that it might take more measures to curb them further.
The RBI last moved on July 22, when it stipulated that 20 percent of gold brought into the country must head out again as jewellery - a move that has dried up supplies and stalled business as traders wait to find out how the rule will work. Demand in the country remains strong, however. Gold is still a must-have at weddings and festivals, which get into full swing in the next few months.
There are signs now that Indians may be bringing in gold through neighbouring countries, pushing their imports sharply higher as well and prompting action by their governments.
Pakistan has slapped a one-month ban on gold bought to make jewellery for export after its imports jumped 386 percent in the first half and topped $514 million in July alone - more than double what it bought in the first six months of 2012.
“The difference in import duties seems to have provided the incentive for increased duty-free imports in Pakistan and smuggling to India,” a statement on the finance ministry’s website said.
The Pakistan government will look at steps to quickly get rid of these loopholes, the release on the website added. Sri Lanka imposed a 10 percent import duty on gold at the end of June to stop an arbitrage opportunity with India amid what one official called “leakages”.
Sri Lanka’s imports of gold jumped 46.7 percent from a year ago to $110 million in the first four months of this year. It imported gold worth $50 million in April alone, provisional data from the central bank showed. International gold prices rose about 8 percent in July, their biggest monthly jump since January 2012, while India’s domestic prices rose about 9 percent during the month.
Nepal hiked its import duty on gold in July to 3,600 Nepalese rupees from 3,000 rupees per 10 grams. About 35 kg of gold was seized en route to India in July, up from 12 kg in January and taking the haul for the first seven months to over 59 kg, according to government figures. Last year, some 12 kg was seized on the route.
Nepal’s official imports of gold rose to $314 million in the 11 months to mid-June this year compared with $275 million in the same period last year. In Bangladesh, gold carries a whopping 58 percent tax and smuggling is rife. In the last seven months, gold weighing over 300 kg was seized at Dhaka International airport.

http://images.thenews.com.pk/13-08-2013/ethenews/e-195523.htm