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Water & Power Gas & Petrol Law & Order

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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 Sheikhupura Road and Printed by MITHAS Enterprises Press, Kamal Road, Kamal Gunj Lahore.

An Idiot’s Guide to Campaigns - Page 34


Golden Words of Bhutto - Today & Forever

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 dominant 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 to move in time to the majesty of that music. This does not mean that I am preaching pragmatism. There is a lot of expediency in pragmatism. I am trying to trace the roots of the problems, the genesis of the challenges, the cause of the struggle”

“You cannot be big unless

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5 - Help youself and row to the shore:
SCCI’s vision for new generation

Table of Contents
The Presidency and Bureaucratic system An organizational reform proposal for FPCCI based on Chambers Power Model

January 2009 | industrialoption.com

6 - Editorial 11 - Role of Chambers of Commerce in Effect ing Change 14 - Energy Profile of Pakistan 20 - Pakistan’s energy crisis: short and long-term solutions

24 - Global Food Crisis: A Bowl of Opportunities for Muslim World 27 - Why Should I get Education? 28 - Survival Tips for Managing During an Economic Downturn 30 - Pakistan Timeline 34 - How India backed-out from its preemptive Media & War Campaign against Pakistan”
An Idiot’s Guide to Campaigns

38 - News & Views

Trade Ordinance 2007

The Tap Opener

Commerce Division
FPCCI Chambers Associations Trade Policy Information Sharing...

Courtesy Sheikhupura Association of Industry (SAI) Sheikhupura Chamber of Commerce & Industry (SCCI)

chambers database associations information




economy public

Stop Ignoring Sheikhupura

We need to Develop a Society based on Dialogue instead of violence and pressure.

Road Network? Motorway?
Banks? Police Civil Society Liasion?

Laborers Colonies?

Vocational Training?

Education? Industrial Facilitation? Heritage? Agriculture?
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Help yourself and row to the shore:

SCCI’s Vision for New-Generation
SCCI Helps you by all means
Poverty is multidimensional, involving not only a lack of income, but also ill-health, illiteracy, lack of access to basic social services, and little opportunity to participate in the processes that influence people’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 policies for poverty reduction is anchored in three basic principles: the multi-dimensionality of poverty, the centrality of gender 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 actively 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:

Way to Success

* Macroeconomic and structural policies - formulating the overall policy framework for growth for poverty reduction; policies and management, to make sure they complement poverty reduction initiatives * Information and Communication Technology for Development (ICTD) – making ICT work for poverty reduction through policy interventions * Civil society and – developing strategies for partnering with civil society in overcoming poverty

* Employment for poverty reduction – strategies for the employment- economic growth-poverty reduction nexus; * Public resource management – focusing on fiscal issues, in terms of
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Editor’s Desk

The Presidency and Bureaucratic system
I think the problem with the Presidency begins with people who care about certain social problems. Not any one problem in particular, not rural poverty, inner-city education, world democracy, population growth, trade deficits, armaments, or whatever. And I’m not saying that it’s wrong to care about these problems. But once people have been trained that only government can solve the problem, all hell can break loose. Because then “public service” becomes a highly-valued, honorable profession. Socially-concerned people get the proper education and become bureaucrats – experts in their field. I have no doubt than most of them care about what they do, that they want to do good. That’s probably half the problem right there. Caring about what they do, their budget is never large enough – they are always shafted, understaffed, and underpaid – and they can’t do their jobs properly. To the degree that the bureaucrat rises to the highest non-politically-appointed positions in government, the more dangerous he becomes. Whether in the military, intelligence, diplomacy, law-enforcement, or social welfare, the knowledge and advice that the bureaucrat gives to his boss, whether it be a Minister, Secretary, or maybe even the President himself, is but one piece of advice among many. With your one shot, give them the best you got. Are these senior officials supposed to know and understand every detail of everything? They would be swamped, with conflicting reports, interpretations, and recommendations. In such an environment, if I were a bureaucrat, I’d be inclined, even if unconsciously, to spin all the relevant facts into a recommendation that I think would be best for the country. I’d probably omit data I personally thought was unimportant and emphasize what I thought are the crucial points. After all, being an

“advisor” means giving “advice,” right, not providing all the facts. Of course, there’s also the problem of job security. When a politically-appointed boss insists in some way to “get the results that I want!” regarding a piece of intelligence or other data, it is probably in one’s career interest to find the data, or spin the dubious facts you have to fit the requirements of the boss. A services company executive can’t make the same demands. The boss may say, “Our best act sold ten million of sales the last time. Make sure new services sells twelve million!” Sure, heads may roll if the album fails to live up to the boss’s demands, but what can’t be hidden successfully is the actual data – the actual sales of the services. Services sales, or sales on anything, or television ratings, provide pretty much irrefutable data. Not so the questions of government. What does “obesity” mean? What’s the difference between healthy drugs and unhealthy, immoral drugs? What is a wetland? Or an under-performing school? The free-market has the objectivity of prices, whereas the government bureauPage - 6

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Editor’s Desk
crat has the subjectivity of “social problems.” In a free market, if the money isn’t coming in through sales, the business will have to close. But the more that coercion infects a society through taxation, price control, and prohibition, the less freedom producers and consumers the nation’s campaign finance laws can operate in full accordance with the Constitution. The libertarian answer to all of these is pretty clear: get the federal government out of the way. But since few people to hear, or what his advisors expect him to want to hear. The unvarnished truth is the casualty. And how do we know that senior bureaucrats and advisors even know the truth themselves, but rely instead on what the lower-levels report to them?

©RAD Federation

can set prices, and the more bureaucrats have the leeway to cook the statistics to bend to whatever they or their politically-appointed superiors see fit. For some people in government, no individual will ever be fit enough, no country will ever be democratic enough, the environment will never be clean enough, the teachers will never be paid enough. Public policy can bend to their demands, no matter how inaccurate or wasteful they may be. Through the maze of political appointments and specialized, self-interested bureaucracy, how can a President be trusted? In other words, the President is forced to be responsible for so much, an expert of everything from stem cells to the international trade to the religious and ethnic divisions of Pakistan to how

are libertarian, and no President ever is, all of these issues become irreducibly complex. That means, when the principle of freedom is rejected out of hand, discerning the best of the remaining options requires supernatural, God-like intelligence. The President can’t possibly know or anticipate the effects of all of his executive orders and bill signings. He has to rely on advisors – not being a libertarian, there’s no other realistic choice. To make the “right decision” on matters he barely knows anything about, he must trust his appointed underlings, political advisors, and the professional bureaucrats. Why can’t the President be trusted? Because the margin of error for anything he does is too great. The President receives either what his advisors want him

Even the most honest, principled and well-meaning of men would be considered a corrupt failure as President. The President is always too susceptible to bad advice, and no human being is capable of always knowing when to get good advice. Even a “good” man who is President will mislead the Pakistani people on numerous occasions, even if he isn’t aware of it. The political and bureaucratic structure of the office of the Presidency is too complicated for one person to manage or control. The job as modern Pakistan has created it, is literally too big for one man. And the only solution to that is to substantially shift the focus from cutting cost to efficiency in bureaucratic system. Manzoor Malik Editor in-Chief Page - 7

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Introduction to Industrial Option
Industrial Option Newsletter covers all aspects of business, from Pakistan and international market news and analysis of economic trends to articles on the people and technologies that influence how we do business every day. It is written expressly for top business decision-makers and opinion leaders who need an international outlook in an increasingly global marketplace. Each month issue explores the links between domestic Offers reporting, commentary, and analysis on world politics, finance, and business trends. Also covers science and technology, literature and the arts. When people get serious about business they read Industrial Option. IndustrialOption.com an online businesses to business portal IndustrialOption.com is a huge community of buyers, sellers and industrialists. For the job to job marketplace, brand can be merely defined as the lot of images, image and feelings that are evoked in the psyche of your customers and prospects at the reference of your figure. IndustrialOption.com is one-stop job so-

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lutions for many of the party’s needs. Real moment market allows buyers to go fast resolution; two main indicators of party productivity are Increased Revenue and Cost Saving. Products offered on a market are integrated with the www.industrialoption.com. There are new benefits that party can obtain from participating in industrialoption. com market as easily. For purchaser participants a B2B market offers as mentioned below: Time savings: Provides for faster acceptance, ordering processes and saving tracking. Access to original suppliers: B2B market involvement removes geographic fences and provides approach to original suppliers. Increased sales: With approach to a wider marketplace, suppliers have the potentiality to increase revenue. Reduced sales and backing costs By automating sales and client backing processes companies can cut over chief costs around 25-30% well. Industrial Option Newsletter 23-KM, Lahore Sheikhupura Road, Qila Satar Shah. Phone: 042-7970711-12 Fax: 042-7970713 Web: http://www.industrialoption.com Email: info@industrialoption.com

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Reduced elevated costs: Thanks to sleek supply string elevated costs can be reduced upward to 30 percentages. B2B exchanges: The landscape is littered with hundreds of B2B exchanges that have failed, demonstrating that success is far from automated. But many are yet operating. They have learned how to go reward of the opportunities and avert the drawbacks of this energetic original merchandising line. The sales string integrated into a Business to Business market covers every phase of selling procedure including quote, dialogue, billing and consignment tracking. www.industrialoption.com is an innovative and comprehensive online businessto-business (B2B) portal, which provides a professional platform for the Pakistani exporters, producers, suppliers and others who are involved into import-export trade. Since inception in 2008, IndustrialOption emerged as an international plateau for thousands of consultants, importers-exporters, agencies and firms to transact business globally without any intermediaries.

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A Tribute To Mohtarma

January 2009 | industrialoption.com

“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”
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Role of Chambers of Commerce in Effecting Change
An organizational reform proposal for FPCCI based on Chambers Power Model


©RAD Federation

Business associations and chambers of commerce have a unique and important role to play in building democratic systems. They are the voice of business, advocating business needs and concerns and solutions to problems to the government, community leaders, the media, and the general public. No one knows better what is good for business than a business person, and then business people together can be more effective in effecting change than one alone. This is the foundation upon which chambers of commerce are built. Chambers of commerce are uniquely positioned to address some of the pressing needs of business communities. Issues of corruption and corporate governance remain at the top of the business agenda

in countries across the globe because bad governance and widespread corruption reduce competitiveness, divert investments, limit productive potential of companies, and impose additional costs of doing business. While it is diffcult for individual companies to systematically address these problems, which stem from weak institutional environments, chambers can be more effective in mobilizing the resources and knowledge to effect change. Chambers of commerce and other types of professional business associations play a pivotal role in building a foundation for sustainable economic development. That role stems from their ability to unite the business community around a set of common issues, identify key problems,

develop solutions, advocate for change, and monitor implementation. Through such a process of private sector advocacy, chambers of commerce not only improve economic regulations, they also strengthen participatory democratic institutions. Highlighting this link between democratic and economic development is crucial in that it is impossible to build a functioning market economy in an environment where business is barred from participation in policy design and implementation. Many countries increasingly recognize the role that the private sector plays in fulfilling national ambitions of sustained economic growth. During the past several decades, private capital flows have replaced government to government Page - 11

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assistance as a major source of capital in emerging and developing markets, and today it can be safely said that the development models that rely on states as the sole providers of income, jobs, and investment are no longer valid. Instead, countries increasingly turn to the business community as the engine of sustained economic growth and prosperity. Even many of the closed nations recognize these trends and seek ways to attract private capital. The question no longer asks who will shape and define economic growth, but rather: how can one unleash the potential of the private sector, integrate it into development models, and capitalize on its resources? The answers to this question lie within the private sector-based theory of economic growth. This theory has brought to the forefront many issues that have redefined the way governments, business, and civil society approach development. But the most important contribution, perhaps, has been the emphasis placed on the framework of government and business relationships. Emphasizing private sector advocacy, private sector economic development models have shown that a grassroots approach to reform must be implemented before ambitions of sustained economic growth are realized. In the same way, this economic theory is also giving rise to the concept of business leadership – the ability of the business community not only to work with government to address various development concerns but also to lead the reform initiatives. The business-government relationship model has evolved dramatically over the past several decades, as many countries have struggled to define their own founding blocks of a prosperous market economy. Command-style economies, where business simply responds to government reform initiatives and is barred from participating in policymaking, have proven to be ineffective in creating a viable private sector that can endure fair competition or participate in the global economy. This has been demonstrated by the fall of the Soviet Union and the state of disarray that rules the remaining command-style economies. Similarly, crony or relationship market economies, where only a few insider fi rms have unchecked access to policymakers and enjoy favorable rules and treatment, have also failed to bring sustained economic benefits to markets and countries, as evidenced by a string of financial crises that have exposed the dangers of relationship capitalism in the late 1990s. However, among the failures of some countries and economic success of others, one model has proven to be the most effective in generating economic growth: the model of a participatory economic system. In this model, business participates in the creation and implementation of economic policies and does not simply react to regulations produced behind closed doors or behave as a puppet in the hands of government offcials.

Role of Special Membership Organizations in FPCCI is to provide chambers Standard Operating Procedures (SOPs) for Following:
– Before chambers attempt to fulfil their role, they have to build internal capacity in consultation with special membership organizations. The first step of this process for the chambers is to understand their mission and objectives. Further, in order to address the needs of their members and advocate effectively on their behalf and contribute to an overall policy process in their countries, chambers have to be functional organizations, which means that they must have knowledgeable staff, implement good governance mechanisms, commit to transparent financial practices, and create a strategic plan with key priorities to address.

Internal capacity building

Building Effective Chambers based on Power Chambers Model
Although the section above illustrates the role of chambers within the national and global economic framework and in democratic decision-making, there is another aspect of chambers’ role that we must consider. In addition to being the drivers of economic change and instruments of democratic process, chambers also need to fulfill their organizational role by serving the interests of their members in an effective manner. Mistakenly, many view these challenges as two separate issues, but the two are part of the same equation. They both focus on creating effective chambers of commerce that build a better environment for doing business – an environment where business (chamber members) is not overburdened by opaque regulations; where it has access to policymakers; where there are opportunities to grow, engage in productive activities, and attract investment; and where it can effectively voice its concerns and offers suggestions.

Access to information – In

order to be effective, chambers have to become a source of information for their members, policymakers, and the rest of the society in consultation with special membership organizations. Entrenched interests benefit from tight control over information, yet markets cannot function and regulations cannot effectively address the real needs of the business community when economic information is unavailable or distorted. Chambers often have a unique opportunity to become sources of economic information because they frequently have direct access to it through their members – businesspeople – who keep markets running day-to-day and experience firsthand the ineffciencies and disorganization of the system.

Communication strategy

– Chambers must have a good communications strategy based on SOPs provided by special membership organizations if they want to attract members, effect Page - 12

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economic change, and improve democratic process because there is little benefit in doing work if nobody knows about it. A communications strategy includes not only the development of communication tools such as newsletters, publications, websites, and policy briefs but also identification of the key target audience for each of those tools. Chambers of commerce, as the voice of business, draw their strength and effectiveness from the fact that ten businesspeople are more effective than one. Similarly, in addressing certain issues, such as building a political will to create avenues for business participation in democratic decision-making, coalitions of several chambers can be more effective than one chamber. More importantly, such coalitions have successfully been built across different competing economic sectors to address a set of common issues. Building an effective chamber of commerce is as much about process as it is about achieving results. Even the best chambers in the world continue to improve to become even better at what they do. Tools to build better chambers as member-based organizations should not be viewed as an end result, but rather as a stepping stone for further success. Competition and innovation lie not only at the heart of markets, but also at the core of chamber development. control. Moreover, it is not just the business communities that seek foreign investment as a source of capital for development and growth; policymakers too increasingly voice their interest in attracting foreign investment. Chambers of commerce are the nexus of this process, being in a position to bring together policymakers and firms and help them build a proper environment for attracting investment. As investors are interested in the stability and predictability of their investments, not just returns on capital, chambers can help build business environments that ensure just that – stability and predictability. which gives those entrepreneurs access to policymakers and helps design and implement regulations that allow them to become a part of the formal economy.

Build private-public partnerships in consultation with special membership organizations – From an overall policy perspective, chambers help build

Reduce the size of the informal sector in consultation with special membership organizations

private-public partnerships to address a set of common economic and social issues. By doing so, chambers not only help develop private solutions to public problems, they also strengthen the democratic process by working together with government offcials, not simply responding to their instructions.

Promote foreign direct investment (FDI) – Government

assistance no longer constitutes the largest share of capital flows to developing countries private capital flows do. But as the competition for FDI is intensifying across different regions of the world, the business community finds itself confronted with the fact that simply desiring foreign capital and welcoming it is not nearly enough. To attract investment business communities must create a strong institutional environment in consultation with special membership organizations where financial practices are transparent, corporate governance mechanisms are in place, property rights are protected, business regulations are clear and fair, and corruption is under

– Informality is one of the key problems for the business community and governments in many countries because it is not uncommon for the size of the informal sector to exceed 50% of the GDP. For firms locked out of the formal economic system the costs are numerous – they do not have access to many of the available sources of capital, they do not have the protection of the legal system, they are an easy target for government offcials and inspectors to extort bribes, and they cannot effectively enforce contracts and thus are forced to operate in small “social network” type markets. However, despite the costs of operating in the informal sector, it is often less costly than complying with numerous regulations imposed on business – there are no incentives for entrepreneurs to try and join the formal economy. Yet, economic costs are not the only burden informal entrepreneurs face. Locked out of the formal economic system, they also have no avenues for participation in democratic policy design because there is often a large information gap between policymakers and informal entrepreneurs. One of the recent trends in the chamber movement in developing countries is representing the interests of the informal sector,

– Chambers should make sure that the business community actually implements corporate governance guidelines. Here again a voluntary approach can be successful. Initiatives such as certifi cation programs and corporate governance awards can raise the profile of the best firms and create industry leaders that others will follow.

Implementation in consultation with special membership organizations

Lead by example – Chambers themselves should have good governance rules in place in consultation with special membership organizations. Members will welcome good governance rules within chambers because they have the same desire as investors: they want to be sure that their investments – membership dues and other resources – are not wasted. Similarly, chambers can deny membership to firms with bad governance practices because bad members can ultimately create a negative image for the chamber and other members’ companies. RAD Federation Contributed to this Article.

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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 Ms. Sabahat Ali (Corporate Law Student, USA) content.

Pakistan’s economy has recovered from years of sluggishness, caused primarily to droughts, with growth experienced in the agriculture, industry and service sectors. In fiscal year (FY) 2004/2005 (ending in June), Pakistan achieved gross domestic product (GDP) growth of 8.4 percent and in 2005/2006 the country had GDP growth of 6.6 percent. High inflation (9.1 percent) in 2004/2005 was attributed to escalating oil prices, higher housing rents and food item shortages. In an effort to decrease inflation, the central bank of Pakistan announced that it would raise interest rates. The strategy worked, with inflation decreasing to 7.6 percent by the end of FY 2005/2006. The International Monetary Fund (IMF), and the World Bank, both major donor organizations to Pakistan, have acknowledged the favorable performance and progress in Pakistan’s structural reforms, but have stressed even greater reform in the public institutions and the public energy sector where progress has been slow. In 2004, the IMF approved a fresh loan of nearly $250 million as part of its overall $1.5 billion aid package to Pakistan. In 2005, the United States began the first installments of a $3 billion aid package, which will continue through 2010. In 2006, the World Bank approved loans of $185 million for various reform and infrastructure projects, in addition to the nearly $850 million loaned to the

country in 2005. The devastating earthquake that stuck Pakistan in October 2005 destroyed lives and caused considerable damage to the country’s infrastructure. However, the majority of the damage occurred in rural areas of the country and had minimal impact on the economy. Furthermore, international aid inflows in the aftermath of the earthquake have served to bolster Pakistan’s economy. The United States pledged $510 million for rebuilding Pakistani infrastructure, but relief coordinators estimate that Pakistan will need billions of dollars and up to ten years to fully rebuild. Pakistan and India decided to extend aid to one another after the earthquake. They also agreed to continue confidence building measures, which include the notification of missile testing, creating new bank branches and increasing the number of airline destinations in both countries. Energy Overview In recent years, the combination of rising oil consumption and flat oil production in Pakistan has led to rising oil imports from Middle East exporters. In addition, the lack of refining capacity leaves Pakistan heavily dependent on petroleum product imports. Natural gas accounts for the largest share of Pakistan’s energy

use, amounting to about 50 percent of total energy consumption. Pakistan currently consumes all of its domestic natural gas production, but without higher production Pakistan will need to become a natural gas importer. As a result, Pakistan is exploring several pipeline and liquefied natural gas (LNG) import options to meet the expected growth in natural gas demand. Pakistan’s electricity demand is rising rapidly. According to Pakistani government estimates, generating capacity needs to grow by 50 percent by 2010 in order to meet expected demand.

According to Oil and Gas Journal (OGJ), Pakistan had proven oil reserves of 300 million barrels as of January 2006. The majority of produced oil comes from Page - 14

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January 2009 | industrialoption.com 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 conducted private negotiations for acreage between individual companies and the Ministry of Petroleum and Natural Resources. In February 2006, Pakistan opened a rare licensing round offering nine onshore and offshore blocks. From the blocks offered, the Pakistani government awarded OGDCL three exploration licenses in the southern Sindh and Balochistan provinces. The licenses cover the Tegani, Thal and Than Beg Blocks and OGDCL has committed to conducting geological surveys and to drilling four exploration wells on the blocks. In June 2006, the government awarded POL an exploration license for the Kirthar Block in southern Pakistan. In July 2006, Pakistan awarded BP three blocks (U,V, and W) in the offshore Indus Delta region. Downstream Pakistan’s net oil imports are projected to rise substantially in coming years as demand growth outpaces increases in production. Demand for refined petroleum products also exceeds domestic oil refining capacity, so nearly half of Pakistani oil imports are refined products. Pakistan’s largest port is located at Karachi, which serves as the principle point of entry for oil imports. PSO leads Pakistan’s fuel distribution market, with its main storage facilities located at Port Mohammed Bin Qasim. Refining Pakistan has five refineries, with total refining capacity of just under 270,000 bbl/d. The largest of the refineries is the Pak-Arab Refinery Complex (PARCO), which became operational in late 2000, with 95,000 bbl/d of refining capacity. In July 2004, Bosicor Pakistan Limited (BPL) began commercial operations at its Mouza Kund plant, near Karachi. Page - 15

proven reserves located in the southern half of the country, with the three largest oil-producing fields located in the Southern Indus Basin. Additional producing fields are located in the Middle and Upper Indus Basins. Since the late 1980s, Pakistan has not experienced many new oil fields coming online. As a result, oil production has remained fairly flat, at around 60,000 barrels per day (bbl/d). During the first eleven months of 2006, Pakistan produced an average of 58,000 bbl/d of crude oil. However, Pakistan has ambitious plans to increase its current output to 100,000 bbl/d by 2010. Due to Pakistan’s modest oil production, the country is dependent on oil imports to satisfy domestic oil demand. As of November 2006, Pakistan had consumed approximately 350 thousand barrels of oil and various petroleum products, of which more than 80 percent was imported. The majority of oil imports come from the Middle East, with Saudi Arabia as the lead importer. Sector Organization Pakistan’s Ministry of Petroleum and Natural Resources regulates the country’s oil sector. The Ministry grants oil concessions by open tender and by private negotiation. To encourage oil sector investment, the Ministry has offered various tax and royalty payment incentives to oil companies. Pakistan’s three largest national oil companies (NOCs), include the Oil and Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Pakistan State Oil (PSO). All three operate under joint ventures and partnerships with various international oil companies

(IOCs) and other domestic firms. Major IOCs operating in Pakistan include BP (UK), Eni (Italy), OMV (Austria), Orient Petroleum Inc. (OPI, Canada), Petronas (Malaysia) and Tullow (Ireland). Privatization In response to conditions laid down by lenders, such as the International Monetary Fund (IMF) and the World Bank, Pakistan continues to strive for privatization of its state-owned companies. For instance, the government has on offer a 51 percent stake in PPL, as well as a 54 percent stake in PSO. PPL owns the Sui fields in Balochistan, as well as exploration interests in 22 blocks, while PSO holds a majority share in the domestic diesel fuel market with more than 3,800 retail outlets. In November 2006, Pakistan plans to have a share issue from OGDCL for the equivalent of 15 percent of the NOCs capitalization. Five percent of the company was previously divested in November 2003 in an initial public offering (IPO). Pakistan hopes to reap significant revenues from these privatizations over the next several years. Exploration and Production BP is the largest oil producer in Pakistan, with production averaging approximately 30,000 bbl/d. The oil major operates 43 fields and more than 100 wells throughout the country. OGCDL is Pakistan’s second-largest oil producer, with average production at 25,000 bbl/d. While there is no prospect for Pakistan to reach self-sufficiency in oil, the government has encouraged private (including foreign) firms to develop domestic production capacity. In 2005, NOCs and IOCs drilled

Industrial Option The 30,000-bbl/d refinery is supplied with shipments of crude oil from Qatar. The plant allowed Pakistan to become a supplier of naphtha, which constitutes 20 percent of the output. The plant produces about 10,000 bbl/d of fuel oil, 6,000 bbl/d of diesel, and 5,500 bbl/d of naphtha, among other products. PSO has a supply contract to purchase the entire output of BPL’s products for the next 10 years. In June 2006, Kuwait agreed to fund a $1.2 billion oil refinery, which would have a planned capacity of 100,000 bbl/d. The refinery would be located at Port Qasim in Karachi. producer (17 percent of total country’s production) in Pakistan. Additional foreign operators include BP, Eni, and BHP Billiton. The Pakistani government has enacted numerous policies to encourage private sector leadership of natural gas development, including privatization of state-run businesses, regulation that encourages competition and tax incentives geared towards increasing exploration and production. Exploration and Production Pakistan’s largest natural gas production occurs at the Sui field, which is located in the Southern Indus Basin. PPL operates Sui field, with production averaging 655 Mmcf/d. Additional producing fields include Mari (446 Mmcf/d), Sawan (366 Mmcf/d), and Bhit (316 Mmcf/d). In 2005, BHP Billiton signed a Gas Sales and Purchase Agreement (GSPA), in which the company will supply an additional 150 million cubic feet per day (Mmcf/d) of natural gas from its Zamzama field. BHP Billiton will complete phase II development of Zamzama in the third quarter of 2007. Petronas brought its Rehmat field online in March 2005. The field produces an estimated 30 Mmcf/d, which is sold to consumers in Pakistan’s southern Sindh province. In the past few years, the country discovered seven new natural gas

January 2009 | industrialoption.com Iran’s massive natural gas reserves to Indian markets across Pakistani territory. In August 2006, Iran and Pakistan extended a previously signed (April 2005) memorandum of understanding (MoU) until 2007. One of the main concerns for both Pakistan and India is how much Iran will charge for the natural gas. To help mediate the pricing issue, the three countries appointed an international consultant this past summer. Iran has offered to cover 60 percent of the construction costs of the pipeline and Pakistani officials have stressed their ability to safeguard the pipeline. Pakistan could earn about $70 million annually in transit fees from the pipeline. If India decides to forego its part in the pipeline project, Pakistan and Iran have agreed to work on a bilateral Iran-Pakistan pipeline project. A second natural gas import possibility that has been considered is an eventual link to the Dolphin Project in Qatar. This plan would supply natural gas from Qatar’s North Dome field to Pakistan via a sub sea pipeline from Oman. Even though Pakistan has signed a preliminary agreement to eventually purchase natural gas from Qatar, it remains to be seen if further action on the project will be taken.

Natural Gas
According to OGJ, Pakistan had 28 trillion cubic feet (Tcf) of proven natural gas reserves in 2006. The bulk of these 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 exploration 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 demand. 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. Sector Organization Pakistan’s state-owned PPL and OGDCL produce around 30 percent and 25 percent, respectively, of the country’s natural gas. The two companies are the country’s largest natural gas producers. OMV is the largest foreign natural gas

fields. The Pakistani government expects the development of these new fields to add an additional 1 Bcf/d to Pakistan’s natural gas production. Proposed Pipelines Pakistan’s government is working on plans to build a pipeline that spans from

A third natural gas pipeline option that has been discussed is a line from Turkmenistan to Pakistan via Afghanistan. Pakistan faces various hurdles with this option, which include the security situation in Afghanistan and the price Turkmenistan would charge for the natural gas. In addition, completed feasibility studies on the project, funded by the Page - 16

Industrial Option Asian Development Bank (ADB), indicate that the Turkmenistan field of Daulatabad will only be able to supply a portion of the natural gas needed by Pakistan. Liquefied Natural Gas (LNG) In addition to natural gas import pipelines, Pakistan is pursuing liquefied natural gas (LNG) import options to meet energy needs. In October 2006, United Arab Emirates-based Dana Gas and its partners, Single Buoy Moorings and the Granada Group signed a MoU to build an LNG import facility, with 3.5 million tons per year capacity. The facility would be completed in 2010 and would be located at Port Qasim, near Karachi.

January 2009 | industrialoption.com Sector Organization The electric power sector in Pakistan is operated by the Water and Power Development Authority (WAPDA), and the Karachi Electricity Supply Corporation (KESC), with additional generation contribution from Independent (private) Power Producers (IPPs). WAPDA is responsible for supplying power to all of Pakistan, with the exception of Karachi, which is supplied by KESC. Currently, 15 IPPs operate in Pakistan under a Build-Own-Operate (BOO) basis. The National Electric Power Regulatory Authority (NEPRA) regulates the power sector in Pakistan, which includes power generation, transmission and distribution. NEPRA is also responsible for determining electricity rates in Pakistan. Disputes over rate adjustments are common within the industry. For example, in July 2004, NEPRA announced that electricity rates would be lowered for domestic, industrial and agricultural customers in the three distribution areas of Hyderabad, Peshawar, and Quetta. The affected distribution companies complained that, due to lower rates, they would be unable to cover their operating costs. NEPRA advised the federal government to subsidize the providers at a cost of around $24 million. WAPDA is at the center of a public sector “circular debt” problem, in which state firms and government ministries have failed to pay power bills, while WAPDA has failed to meet obligations to them and to private sector creditors, especially state-owned PSO.

Pakistan had 20.4 gigawatts (GW) of installed electric generating capacity in 2004. Conventional thermal plants using oil, natural gas, and coal account for about 66 percent of Pakistan’s capacity, with hydroelectricity making up 32 percent and nuclear 2 percent. The Pakistani government estimates that by 2010, Pakistan will have to increase its generating capacity by more than 50 percent to meet increasing demand. In 2004, Pakistan generated 80.2 billion kilowatthours (Bkwh) of electricity while consuming 74.6 Bkwh. Pakistan’s total power generating capacity has increased rapidly in recent years, due largely to foreign investment, leading to a partial alleviation of the power shortages Pakistan often faces in peak seasons. However, much of Pakistan’s rural areas do not have access to electric power and about half the population is not connected to the national grid. Rotating blackouts (“load shedding”) are also necessary in some areas. In addition, transmission losses are about 30 percent, due to poor quality infrastructure and a significant amount of power theft.

Coal currently plays a minor role in Pakistan’s energy mix, although the country contains an estimated 3,362 million short tons (Mmst) of proven recoverable reserves. Pakistan produces small amounts of coal, 3.5 Mmst in 2004, and imports additional coal, 1.7 Mmst in 2004, to satisfy demand. Recently, the discovery of low-ash, low-sulfur lignite coal reserves in the Tharparkar (Thar) Desert in Sindh province, estimated at 1,929 Mmst, has increased both domestic 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.

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Industrial Option Privatization The Pakistani government continues to seek reform in the state-held electric companies. In November 2005, the Privatization Commission in Pakistan sold KESC to Hassan Associates, a group of local and Saudi investors. KESC controls a power transmission network in the southern part of Karachi. Because KESC has struggled to make a profit, the Pakistani government has supported the company with a $200 million annual subsidy. But, Hassan Associates has indicated that they are confident in their 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. project. Eden Enterprises, along with Pakistani partners own 95 percent of S.K. Hydro, which was given a 35-50 year concession period for the power plant. Construction is expected to begin in 2009, with the plant coming online in 2011. The Private Power and Infrastructure Board (PPIB) is currently reviewing six additional hydropower projects for the Swat River. If approved, the projects would provide several hundred MW of additional hydroelectric power capacity to the country.

January 2009 | industrialoption.com Board (AEDB). AEDB’s primary objective is to help Pakistan achieve a 10 percent renewable energy share in the country’s energy mix. AEDB is working to create an environment in Pakistan that is conducive to investment from the private sector in renewable energy. In July 2006, Turkish-based Zorlu Energji Grubu signed a letter of intent to install a 50-MW wind farm. Zorlu would operate the wind farm for 20 years once the project is completed in 2008. Zorlu has indicated that it would like to install an additional 2,000 MW of renewable energy capacity in Pakistan by 2015.

Thermal Power
WAPDA operates the majority of thermal power plants in Pakistan, with over 5,000 MW of installed capacity in its control. The Guddu plant is the largest plant operated by WAPDA, with a capacity of 1,650 MW. In recent years, growth in Pakistan’s thermal power generation has come primarily from new independent power producers (IPPs), some of which have been funded by foreign investors. The two largest IPPs in Pakistan are Kot Addu (1,600 MW) and Hubb River (1,300 MW), both of which supply power to WAPDA. The Kot Addu plant was privatized in 1996 (from WAPDA). International Power holds a 36 percent equity stake in the Kot Addu plant. The Pakistani government has recognized that the majority of thermal plants in the country are run on fuel oil and produce considerable amounts of pollution. In an effort to reduce pollution, the government would like to see fuel oil-power plants converted to natural gas in the future. Other Renewables Pakistan is working to expand the use of renewable energy to help bridge the gap of energy deficiency in the country. In 2003, the Pakistani government created the Alternative Energy Development

Pakistan has one nuclear power plant, Chashma-1, with 300 MW of installed capacity. The Pakistan Atomic Energy Commission operates the nuclear plant. Pakistan is currently working on second nuclear power plant (Chashma-2), with the help of China National Nuclear Corporation. The plant will have 325 MW of installed capacity and could be completed by 2009.

Hydroelectric power represents a third of Pakistan’s power source, however, periodic droughts affect the availability of hydropower production. WAPDA controls the country’s major hydroelectric plants, with the largest being the Tabela plant at 3,046 megawatts (MW) installed capacity. The Tabela plant was the largest hydroelectric plant in Asia until China began building the Three Gorges project, which will have 18,000 MW of installed capacity. Additional hydroelectric plants in operation include Mangla (1,000 MW), Warsak (240 MW), and Chashma (184 MW). Although Pakistan has plans to develop additional hydroelectric generating capacity, infrastructure constraints, such as access roads in mountainous regions and resettlement costs of affected populations have stalled progress. Nevertheless, Eden Enterprises is going ahead with its Suki Kinari (655 MW) hydropower

Environmental Issues
In Pakistani cities, widespread consumption of low-quality fuel, combined with a dramatic expansion in the number of vehicles on the roads, has led to significant air pollution problems. Lead and carbon emissions are major air pollutants in urban centers such as Karachi, Lahore, and Islamabad. A lack of energy efficiency standards has contributed to Pakistan’s high carbon dioxide intensity. One hopeful trend is that Pakistan has increasingly been using compressed natural gas (CNG) to fuel vehicles. Currently, government vehicles and taxis that have been using liquefied petroleum gas (LPG) are being converted to CNG.

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World leaders condemn Israel

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Pakistan’s energy crisis: short and long-term solutions
By: M. Sharif Pakistan is in the grip of a serious energy crisis that is affecting all sectors of the economy and the various segments of the society. As the situation stands today, there are hardly any immediate solutions to resolve the issue. A change of atto an estimate the country has enough resources to generate approximately 40000 mw of hydro-electricity. However, presently it only generates 8000 mw of electricity against an installed capacity of 11327 mw. In addition the country can generate electricity with the help of wind and solar energy which has not yet

January 2009 | industrialoption.com

per cent to 71 per cent during the same period. Needs of most of the commercially used oil are met by imports whose prices have skyrocketed during past five years and as such the cost of power generation through oil has increased. Power consumption because of increasing needs of industry, agriculture and households has been on the rise. According to an estimate, between the period of 1990 and 2003 the total consumption increased by 84 per cent, from 31twh to 57twh. Presently, an annual average increase of 7 per cent has been postulated. The energy sector, in which the government has a greater role to play, will have to work hard to make up for the existing deficit and to meet the growing demand.

None of the previous rulers of the country solved the issue due to which the energy crisis kept on increasing regularly.
titude and a change of life style is needed at the national level which should be triggered by the ruling elite and followed by all segments of the society that have access to electricity. At best there could be some short and long-term solutions to the crisis but they need immediate planning and execution with an enormous investment. None of the previous rulers of the country solved the issue due to which the energy crisis kept on increasing regularly. been exploited to meet the energy deficit. Nuclear energy is yet another source of energy and at present PAEC produces 472 mw. It is far less than what PAEC should have been producing to meet the energy deficit. Three major electricity generation agencies presently operate in the country. They have a total installed capacity of around 19522 mw. Their installed capacities are as follows: WAPADA: 11327 mw; KESC: 1756 mw and Independent Power Producers (IPPs), 5977 mw. PAEC produces 472 mw as stated earlier. Thermal power accounts for 64 per cent of the total installed capacity, hydro-electricity accounts for 33 per cent and nuclear power plants account for 3 per cent. Thermal power is mostly produced by burning either natural gas or imported oil. The country is yet to switch over to coal from the indigenous source of energy that is estimated to be the third largest in the world with a reserve of 33.0 trillion tons. The Energy market has been changing according to the demands of power consumption. The Prices of energy raw materials also kept changing. According to an analysis, in the fiscal year 1990-91 hydropower accounted for 45 per cent of all electricity produced in the country but it was reduced to 26 per cent with a 10-year period. The share of thermally generated electricity increased from 54

The reason behind the crisis
An important question in the midst of ongoing power shortage crisis, being raised is that why the energy crisis looms on our head after an interval of around 10-15 years despite the fact that statistics about energy resources, demand and consumption are well articulated. They are also readily available to planning commission and other federal and provincial governments. The answer is simple; poor management, lopsided priorities and lack of accountability on part of those who stay at the helm of affairs. In the early 90s, the power crisis had started emerging and the political government that was mandated to govern the country was faced with the issue of power crisis. The government had to resolve the crisis by engaging almost 19 Independent Power Producers (IPP). 19 IPP projects were initiated with an installed capacity of 3158 mw and investment of $4.0 billion and by March 2003 the installed capacity was at 2728 mw that has reached to 5977 mw through expansion. Till 2005, supply of electricity produced through different power genPage - 20

State of energy resources
Pakistan has a deficit of fossils or hydrocarbons sources of energy and to cover up the deficit, it depends upon importing crude oil at an enormous cost from its meager forex reserves. The need of crude oil is on an increase because of an improved life style which has necessitated the use of vehicles and cars for transportation. Import of oil at around $110 per barrel, increases the trade deficit and the current account deficit. It makes fiscal management a difficult task which affects the government as well as the people. Contrary to the deficit of fossils or hydrocarbon resources, Pakistan is rich in hydro resources of energy. According

Industrial Option erating units was surplus to demand by around 450 mw but since then demand has been outstripping supply because there was practically no additional power generation. The government did not anticipate that there would be an increase in demand of electricity and it was its responsibility to arrange the supply according to the demand. Consequently, during summer, 2007, supply of electricity ran short of 2500 mw. It is being anticipated that this year the deficit between supply and demand could be as high as 3000 mw. By the end of year 2010, the deficit could be as large as 5500 mw. There are no immediate solutions to generating additional power through any source because a unit takes at least 2-3years to establish properly. More than 5 years is required to construct a hydroelectric dam and the investment is enormous. This crisis has literally paralysed the construction industry, badly affected agriculture and made life hell for the citizens. In view of existing ground realities and constraints to address power crisis by generating electricity within a short span of a few months, the need to make the best use of existing power generation by taking conservation measures at individual, community and national level are essential. These measures if implemented with commitment and honesty of purpose can help a lot of people to over come negative implications of power crisis. eas close to or within large cities such as Karachi, Lahore and other comparatively smaller cities. Industrial units are not energy efficient and management practices also need improvement to make efficient use of electricity. A study carried out by the ENERCON reveals that efficient use of electricity by the industrial sector could save up to 23 per cent of electricity. The focus on energy conservation is on the improvement of steam distribution systems, air conditioning, refrigeration and modernising and revamping energy efficient combustion processes and controls. The transport sector is the second largest consumer of energy. According to an ENERCON study, this sector consumes 28 per cent of total national consumption of energy. This could be reduced by 10 per cent if car owners alone were to economise on consumption of fuel and kept their car engines fully tuned up. The sector has the potential to be 20 per cent energy-efficient if railways, shipping and aviation are included. One of the visible constraints that keeps the industrial and transport sector away from being energy-efficient is the lack of observing energy conservation rules and regulations which are already laid down by the government. Their focus is perhaps on short-term gains that run contrary to national interest. The third largest consumer of electricity is domestic/household sector that consumes around 21 per cent of electricity produced in the country. According to a study this sector could be efficient by 30 per cent by avoiding wasteful habits of consuming energy such as keeping markets fully lit etc. A positive development that has so far taken place in this sector is gradual shifting over to use of energy savers. Similarly energy could be saved by minimum use of air conditioners. The entire household should be well-aware of energy consumption. To achieve meaningful results about conservation of energy the charity should start from home, that is, the ruling elite should take the initiative and set example to conserve energy as a national imperative for emulation by other segments of the society. If conservation measures stated above were to be implemented partially, it would go a

January 2009 | industrialoption.com long way in addressing the energy crisis immediately without any additional cost.

Measures by the government
The outgoing government had belatedly addressed the power crisis by hyping up the construction of mega hydro-electric dams including politically controversial Kalabagh dam without going into details about their feasibility and sources of investment. The new government has a real big challenge of addressing the energy crisis at hand. Its first priority should be to implement immediate measures that might bring some relief to the public. It should also immediately embark upon the programmme of expansion of generating capacities that has been laid down by the previous government under “Vision 2025” programme. It envisions increasing existing power generating capacity by 10000 mw by 2010 and around 35000 mw by 2025 at an enormous cost of $35 billion to be shared by the government and private sector. The share of different sources of energy is stipulated to be as follows: hydro-electricity: 22563 mw, new gas fired plants: 4680 mw, coal fired plants: 4350 mw, nuclear plants: 1800 mw and finally 1500 mw from renewable energy resources. It is certainly an ambitious plan that needs to be implemented on priority basis with changes that the new government might like to make within its national policy framework.

Energy conservation measures
Energy conservation or efficient use of electricity is what is needed at this crucial time. There are three major users of electricity and they need to be educated and motivated to play their role in energy conservation. The three stakeholders are: industrial sector, transport sector and domestic/household sector. Each sector needs to be dealt separately to high light the efficacy of conserving energy. The Industrial sector is consuming the largest amount of energy in the country. It consumes around 45 per cent of the total commercial energy. Most of them are concentrated in a few industrial ar-

It hardly needs to be emphasised that electricity is the lifeline of national economy and the people at large. The Economy and public life practically come to a halt because of the load shedding. The existing crisis can be addressed by the government by taking prompt measures. There is hardly any room for neglect or delay.

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December 2008 | industrialoption.com

Chamaber Mission 200
“In 200, we pledge to undertake initiatives encompassing Database and Information Sharing, Accepting right of everyone on quality and competency basis without prejudice, restore investor confidence within country and help building interest for new coming investors, building 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 1 Associate Class Sheikh Abdul Hafeez M/s S. Abdul Ghafoor & Sons Sheikhupura Imtiaz Ashraf Aulakh Aulakh Commission Shop Sheikhupura Muhammad Ramzan Hassan Board Industries GT Road Kala Shah Kaku Haji Muhammad Ilyas Farooq Abad Haji Muhammad Ramzan Al-Hamd Cloth House Sheikhupura Ch. Nadeem Safdar Model Soap Factory, Sheikhupura Sohail Iqbal Mian M. Iqbal Hussain & Company Sheikhupura Ch. Tahir Majeed Ch. Tahior Majeed & Co. Sheikhupura Malik Mushtaq Ahmad Sky Interbnational, Muridkay Haji Abdul Kareem Ch. Muhammad Baqar Khan & Company, Jhabran. Corporate Class Ali Abbas Mandiali Paper Mill Pvt. Ltd. Muhammad Saeed Premier Paper Mills Ltd. Ch. Zahid Hafeez Zahid Hafeez & Brothers Faraz Ahmad Malik Malik Board & Paper Pvt. Ltd. Muhammad Shoaib Al-Munawar PVC Pvt. Ltd. A.R Khan Super Theramics Haseeb Haroon AHN Steels Pvt. Ltd. Mian Mohammad Sana Ullah Salman Ajmair Traders (National Pipe). Sammi Farooq Jammal PVC pvt ltd. Khuram Javed Mughal Al-Bashir Steel Mills Pvt. Ltd.










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Standing Committees of the Sheikhupura Chamber of Commerce & Industry for the period of 2008-0
Name Standing Committee Company Name

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Mohammad Tariq Iqbal Mughal Ch Mohammad Arif Amjad Nazir Butt Mehmood Sami Ch. Nadeem Safdar Rab Nawaz Sabir Pervaiz A.R.Khan Shahid Saeed Pasha Haji Maqsood Malik Manzoor Sheikh Naveed Anwar Muzaffar Ahmad Haseeb Haroon Mohammad Saleem Butt Amir Bakhat Azam Tariq Iqbal Mughal Mian Farooq Ahmad Ms Qaisra Zulfiqar Mian Muhammad Sanaullah M. Waseem Asharaf Sheikh Abdul Hafeez Imtiaz Asharaf Aulakh Syed Abid Shah Ali Abbas Mohammad Rashid Lala Abdul Waheed Khalid Zaman Toor Malik Mohammad Yusaf Shehzad Ali Nagina Abid Mehmood Butt Amir Bakhat Azam Ch Mohammad Arif Amjad Nazir Butt Suhail Iqbal Mian Manzoor Ul Haq Malik Kamran Khan Ch. Mohammad Sadiq Khalid Taj Mian Shahabul Khan Malik Mudassar Khawaja Tariq Aamir Muhammad Younas Adil Mehmood Zafar Iqbal

Note: Co-Chairmen & Members to be announced soon.

Achievement Award Agri and Pesticide Agro & Food Process Petroleum Soap and Detergents Dyes and Chemicals Miller Industry Customs & Import Chemical Processing Gems & Jewelry Industrial Services Stainless Steel Industry Board Industry Collides Pharmaceutical Cable Industry Trade Delegation Pipe Industry Women Entrepreneur WAPDA Dispute Resolution Rice Export District Government Social Welfare Education Chemical Yarn Open end Industry Health Rice Research Sales Tax R & D / NGOs Building Environment Law & Order Chamber News Membership Growth Liaison Pulp & Paper Business Dispute Resolving Sui Gas+ CNG Court Matters Public Relation Packaging( Tin Corrugation ) Match Industry Shoe Industry Textile Industry Industrial Department

Mughal Steel Mill Pvt Ltd Ch Stone Crushing Al Madina Trading Co Skp Sami Sons Model Soap Factory Ahmad Jannat Enteprises Seena Grinding Super Thermax Premier Chemical Maqsood Jewelers Industrial Option AHN Steel Malik Board & Paper Mill AHN Collides Ameer Pharama New Age Cables Mughal Steel Mill Pvt Ltd Jamal Pipe Industry Al Aziz Paper Mill National Pipe Waseem Traders S. Abdul Ghafoor & Sons Aulakh Commission Shop Philanthropist RN Rayon Model Spinning Usman Traders Crystal International InterPack Mandiali Paper Mill H.M. builders New Age Cables Ch Stone Crushing Al Madina Trading Co Muhammad Iqbal Hussain & Brothers Industrial Option Flying Paper Mill Insha Industries Taj International Qadria Board Falcon Packages Ayub Packages Fazal Match Industry Rightway International Adil Textile Pvt. Ltd. Khalifa Papers

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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 directing their attention to the turmoil in the financial sector - far less attention is being paid to the global food price crisis--- a crisis that is having a more immediate and life threatening impact on the global masses. According to a recent report from Oxfam, a global non-governmental organizations working to fight poverty, prices of staple foods have seen increases 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 these countries. Ironically, it’s these same economies which are some of the most agriculturally endowed in the world. According to the UN’s Food & Agricultural Organization, Pakistan is the world’s top producer of buffalo/goat milk (#2/#4), buffalo/ goat meat (#2), chick-peas (#2), and sugar cane (#5); Bangladesh is a leading producer of rice (#4), jute (#2), goat milk/meat (#2, #4); and Indonesia is a leading producer of coconuts (#1), green beans (#2), tropical fruits (#2), eggs (#3), and rice (#3) revenue windfalls have eased the impact of the food crisis in these countries. As these Gulf and other oil rich Muslim economies look to invest their revenue windfall towards domestic infrastructure and industrial rehauling-the agriculturally endowed, yet poorer Muslim world economies provide a unique investment

in addition to many other agricultural products. Conversely, the oil-rich Muslim majority states of the Arabian Gulf have become the biggest beneficiaries of the other global crisis - the energy shortage. Record

opportunity for them. This analysis looks at how the oil-rich Muslim economies could leverage their existing relationships with agriculture based Muslim economies (which have a wide productivity gap with the worlds Page - 24

Industrial Option net agriculture exporters) taking them to globally competitive levels; reaping for themselves high investment returns, securing their own food sources, and contributing to alleviation of the food crisis from other Muslim countries. The Impact and Drivers We are all feeling the pinch from rising food prices. For us-the fortunate ones who can afford internet access and read magazines-- the food crisis may translate into eating out less, or cutting down on buying expensive groceries. However, for approximately 2.7 billion of the world’s population who spend 80% of their income on food (source: Oxfam)-this is serious. In Pakistan, the poorest one-fifth of the country’s population spends 50 to 58 per cent of its income on buying cereal foods alone. The skyrocketing wheat prices, therefore, becomes a matter of life and death for the extremely poor. This dramatic spike in food prices has been attributed to various complex and interlocking reasons. Growing global demand (particularly from large, emerging economies such as China and India), unfair world trade rules, skimpy wheat harvests, speculation in the commodities market, increased use of farmland to produce bio fuels (to offset high fuel prices), years of neglect in investing in agricultural sectors, and climate change are all playing a part. The global push for bio fuel crops, which then take food crops out of production, is playing a significant role in raising prices. World Bank analysts have estimated that bio fuel production has accounted for 65 percent in the rise of world food prices, while the International Monetary 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 unfair trade rules and farming policies that benefit rich countries, also contribute to this negative impact. “The real matter to my mind is growing consumption - whether it is food or energy. We need to cut down wasteful consumption,” said B.G.Vergese, a noted Indian economic analyst. The objective of this article is not to analyze the reasons of the crisis, since broadly it all boils down to supply and demand disparities. Rather, our focus is to concentrate on the unique opportunities in the market. The Muslim World - Agriculture Centered but Food Poor Many of the 57 OIC (Organization of Islamic Conference) member countries are agriculture centered economies producing a major portion of the world’s food commodities. As shown in the table below--Indonesia, Pakistan, Turkey, Iran, and Egypt have the biggest agriculture outputs within the Muslim world (by GDP - PPP contribution.)

January 2009 | industrialoption.com An Opportunity to Lead While these are some of the poorest economies in the world,they stand to

DinarStandard.com Analysis based on World Bank World Development Indicator 2007, CIA World Fact Book data

Data Source: World Bank - World Development Indicator 2007 Most of these top agricultural based economies are also some of the poorest and hardest hit by the food crisis. Within the ten major agricultural Muslim world economies, Bangladesh, Sudan, Nigeria, Pakistan and Indonesia have the lowest GDP Per capita (PPP.)

benefit greatly from a growing demand for food. In Indonesia, according to Oxfam, the price rises have offered a huge opportunity for palm oil exports: these increased by 55 per cent in 2007, making palm oil the country’s biggest revenue-generating export, surpassing even copper, coal, oil, and gas. At the same time, Indonesia being a beneficiary of the booming bio fuels sector is experiencing a soaring price of local cooking oil, making everyday life very difficult for its people. A key aspect of the opportunity here is the low agricultural productivity of these economies that forms the basis of the potential. When compared to the global leaders in agricultural exports, the agricultural productivity of Muslim majority agricultural economies lags far behind. Amongst the largest 10 agricultural economies Egypt, Bangladesh and

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Industrial Option Pakistan are the most productive when measured by the $ Agricultural output/ square km, whereas Sudan, Nigeria, Algeria and Turkey are the least productive. The low value productivity has been attributed by various agencies to underinvestment in the agricultural sector, government mismanagement, and not being able to attune the agricultural practices to the developing world. Thus the number one opportunity is for these very countries’ public and private sectors to commit to agricultural development and lead the world in fulfilling global food demand. Another unique aspect of this opportunity is the role of the Oil-rich Muslim majority countries. The most affluent Muslim majority countries (based on GDP per capita) are almost all the oil producing nations of the GCC (Gulf Cooperation Council) that have benefited from the cash windfall of world oil dependent energy needs. The total population of the six members of the Gulf Cooperation Council (GCC) - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE - rose from around 30 million in 2000 to more than 35 million in 2006. GCC food imports cost 10 billion dollars in 2007 where Saudi Arabia, with a population of about 24 million, remains the largest food importer. As the table above shows, the GCC countries that are looking to diversify their investments can contribute and benefit greatly by investing in the great agricultural sector potential of the Muslim world economies. This also will help them secure their own food supply needs. Emerging Private Sector Investments & Government Initiatives There are certainly indications that the Muslim world is taking some actions to tap into the above stated potential. At the Government level, recently, the 57 nations of the Organization of the Islamic Conference have come together to cooperate on increasing food production. Kuwait’s Deputy Prime Minister Sheikh Dr Mohammad Sabah Al-Salem Al-Sabah has recently said that Muslim countries were the most gravely affected by developmental challenges, namely global inflation and shortages in the world’s food reserves. This has compelled the Kuwait Government to launch several initiatives such as Kuwait’s “decent living” fund. The Amir of Kuwait has donated $ 100 million to establish the fund for “decent living” in Muslim countries, and another $ 300 million to the Islamic Development Bank’s (IDB) Poverty Fund. Meanwhile, the Islamic Development Bank (IDB) has also pledged USD 1.5 billion toward addressing the food crisis in its poorest member countries. The package, known as the Jeddah Declaration, will be disbursed over a 5-year period and will include short, medium, and longterm programs to deal with the crisis. Faced with a scarcity of fertile land, water shortages and surging world food prices, the GCC states are seeking to secure their food supplies by investing in agriculture abroad. Saudi Arabia and the United Arab Emirates, the top food importers among GCC countries, are now looking to Asia and Africa as opportunities for agricultural investments. On the private sector side, it seems that many GCC companies are looking at establishing agricultural ventures in other nearby countries. One reported UAE project to develop more than 70,000 acres (28,328 hectares) of arable land in Sudan is in line with this strategy. Being Africa’s largest country, it has abundant water resources including the Nile River, the world’s longest river. However, Sudanese agriculture remains massively underdeveloped, although it employs 80 percent of the workforce, with much of the population reliant on subsistence agriculture. Egypt and Pakistan have also been targeted by Saudi Arabia and the UAE for food projects. Some recent transactions/ initiatives are as follows (Source: http://www.grain. org/go/landgrab):
* In August 2008, three Gulf firms -- Abu Dhabi Investment House, Ithmaar Bank and Gulf Finance House – announced the creation of AgriCapital, a new Islamic investment fund. The US$1bn investment vehicle will engage in land purchases overseas to produce food for the region. * MAP (Market Access Promotion) Services Group, an international investment firm, has joined other Gulf partners to form a Middle East Food

January 2009 | industrialoption.com
Fund that will collectively invest in food production in nearby countries for the Gulf market. MAP will also develop 10 model dairy and livestock farms in Pakistan through private equity, small enterprise development and donor facilitation in 2008–10. * On 7 September 2008, Kuwait’s Minister of Finance signed what his Sudanese counterpart called a “giant” strategic partnership deal with the government in Khartoum. Under the agreement, the two will invest jointly in food production, presumably in Sudan, including cattle. * The Qatar Company for Meat and Livestock Trading Mawashi has established a sheep farm in western Sudan and has signed a memorandum of understanding with the country for further expansion in livestock farming. It also has bilateral agreements with two Tajik livestock companies. Qatar Livestock Mawashi has also committed US$1bn to develop industrial livestock farms in Pakistan. * In August 2008, the BinLaden Group signed an agreement to invest at least US$4.3bn, on behalf of a consortium of 15 Saudi investors known as the Middle East Foodstuff Consortium, to develop 500,000 ha of riceland in Indonesia. * Hail Agricultural Development Company (HADCO), a Saudi agribusiness firm, has leased 25,000 acres (10,117 ha) for US$95m north of Khartoum to produce food and feed for export to Saudi Arabia. * Abraaj Capital, a private equity firm managing US$5bn of assets, has, together with the UAE government, reportedly acquired some 800,000 acres (about 324,000 ha) of supposedly “barren” farmland in Pakistan over the last year to produce rice and wheat for export to UAE.

Envisioning a food market to the world There are certainly many, many challenges in improving the productivity of the agriculturally endowed Muslim world economies. Ineffective management of water resources, soil fertility; in effective access to markets, credit and input; and lack of R&D are all known hurdles. However, given the already existing strong relationship of the GCC countries with agriculturally endowed Muslim world economies and the investment pool available, the GCC countries can play a leadership / innovative role. With a coordinated investment strategy they could support government driven infrastructure initiatives as well as investing in individual farming practices resulting in securing their own food supplies as well as investment returns. In many ways this type of leadership is akin to Dubai’s very impressive approach to becoming the new world tourism destination which the rest are following. Perhaps a spirited human impacting vision could also enable it to establish the Muslim world as the leading food basket to the world.

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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 society, and the historical context and place an individual is raised within.
By: Muzayyan Manzoor Student FC College The purpose of education is dependent on the form of the family and society, and the historical context and place an individual is raised within. The current context is one of rapid economic globalization oriented towards knowledgebased industries aimed at increasing human longevity and enhancing human capabilities. This form of society recognizes the individual as being the source of legitimate authority and responsible for both self-conduct and the preservation of the society. Such a society is constituted of ever-expanding spheres of local autonomy, beginning with the individual and proceeding outward through the family and voluntary associations, followed by city, county, regional, national and global political jurisdictions. The importance of each sphere of local autonomy is directly proportional to the closeness to the individual, who holds ultimate responsibility, through their representatives, for the consequences of the exercise of delegated authority and power. The most important sphere of local autonomy is the individual and the immediate family and the least important are global jurisdictions. Individuals within our form of society have a dignity that cannot be taken away from them by any power on earth because of their unique moral capacity; they are their own masters, they choose come to them from outside themselves. Due to this inherent dignity and as the individual source of political authority, learning self-control is vital to educational success. Students develop self-control through learning to obey authority that they accept as legitimate. If students never learn to obey others, they can hardly learn to obey their own internal restraints; they will have recurring trouble resisting harmful vices or issuing orders while leaving people’s dignity intact. They will, therefore, have difficulty achieving happiness or justice. Parents and teachers are obeyed because they possess superior knowledge that stuhappiness is the terminology of secular education; within religious education, this is called the formation of the soul, both types of education are prevalent in our society. To develop character means to refine our coarse emotional states and base desires into civilized and tasteful emotional states and higher desires. It also means to seek the truth, in community with others, sharing common meanings within a clear and practical language, doing good oneself and promoting good in the larger spheres of local autonomy. Once these basics of education have been mastered, the student has the conceptual tools necessary to go deeper into any single fundamental realm or into interdisciplinary areas between realms. Teachers guide students into studies of works proven to have permanent worth. A student might choose to learn more between the realms of meaning and purpose, such as law or anthropology, or between the realms of purpose and truth, such as medicine or engineering, or between the realms of truth and meaning, such as economics or business. The most general learning, relying equally on the tripod of the basic curriculum within all three realms, is in the areas of history, philosophy, politics and religious thought. This is the knowledge all individuals within representative democracies should attempt to achieve, at least to the degree that informed decisions are possible. Representatives themselves require this most generalized knowledge during periods of rapid technological, indeed, revolutionary changes of unknown scope and duration. The purpose of education is the preservation and enhancement of knowledge and the development of character within our given form of society which will best prepare the individual for the conditions of extreme novelty the near future is bringing.

dents both need and desire, exhibiting a natural hierarchy.

Individuals within our form of society have a dignity that cannot be taken away from them by any power on earth because of their unique moral capacity;
their own ends and do not have their ends chosen for them. Individuals are recognized as created beings; they did not create themselves and cannot give away the rights and responsibilities that Desiring to excel at acquiring knowledge develops the kind of character necessary for the preservation of our form of society. Developing character and achieving

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Industrial Option

January 2009 | industrialoption.com and landlords for better prices or shortterm reductions, and even consider trading goods and services on a barter exchange for credits instead of for cash. Take advantage of supplier discounts for prompt payment, and don’t pay checks for no-discount bills before they’re due. If the cash bind has already surfaced, talk to creditors before the bills are past due to persuade them to extend payments of your current bills. Your chances of getting their cooperation will lessen if you wait until they send collection memos. Keep in mind that suppliers’ credit managers will be more receptive if your payment history is a solid one, and you can assure them future bills will be

Survival Tips for Managing During an Economic Downturn
Running or managing a small business often leaves little time to keep track of national, and even regional, economic indicators that might affect your industry and your specific operation. Yet conditions such as interest rates, inflation, gross national product, stock prices and consumer confidence have direct impact on your profitability and on relationships with vendors, customers and even employees. During periods of economic decline, whether widespread or cyclical for a particular type of business, entrepreneurs are most likely to bear the brunt. Yet the fact that conditions are changing opens up opportunities for resourceful firms to outsmart larger competitors who, during a downturn, carry on business as usual or are unable to adapt quickly -- except to fire employees. Such innovative small firms can: to follow during economic upheavals:

1.don’t holdyour inventories tight that Watch carefully, but them down so
you’ll lose sales. Typically during a slowdown, there is an imbalance between slumping retail sales and bloated inventories -- don’t be saddled with leftover merchandise that ties up your cash flow. One possibility is converting inventories

“Gain market share by taking it away from competitors unable to adjust to shifting market conditions. Maintain a strong cash stream throughout the downturn, in contrast to other companies that may have liquidity problems. Become a leaner, more costeffective and more efficient operation, better positioned to do well when the market improves.”
The challenge is to be aggressive and imaginative. Entrepreneurs who survive and even prosper during hard times must be able to look beyond the present, to overcome the constraints of tradition, to see the firm from a new perspective, and to do business differently. Here are 14 specific recommendations for small business owners and managers

“During periods of economic decline, whether widespread or cyclical for a particular type of business, entrepreneurs are most likely to bear the brunt”
paid on time. Separate the “nice to do” from the “have to do,” and eliminate nonessential expenses as much as possible. Ask yourself, is that activity necessary? If not, don’t do it. Also consider cutting personal spending. Simple solutions such as brown bag lunches and car pooling can make a difference.

into cash. If your business traditionally stocks 250 units of each of its slowestmoving products, consider cutting that number to 100 each. Monitor the results, keeping an eye out for those products that can tolerate even leaner inventories or that should be eliminated from your stock. This way if sales nosedive, less of your cash is locked into unproductive assets.


Reduce 2. Taking thatvery diligently, and fore- 4. up your or stretch out debt, and point further, monitor build capital reserves. Watch your cash flow cast it monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Make sure your financial statements provide information that is timely, relevant and accurate. Cash flow statements are superior in this regard to income statements and balance sheets. Be able to project where you will stand three months in advance. Negotiate with suppliers, contractors

the credit¬worthiness of your customers, even bread and butter accounts. Remaining close to existing customers, and checking to see how they are getting on during the economic downturn, not only helps avoid unpleasant surprises but could also lead to new opportunities. Besides, when sales are sluggish, keeping in touch with customers (always a sound business practice) becomes vital to head Page - 28

Industrial Option off eager competitors. If appropriate, encourage sales people to call on every customer on a regular basis, and set aside some of your own time to do the same. Frequent face-to-face meetings with your client base provides an excellent opportunity – probably your only one -- to pacify disgruntled customers and win back lost ones. Try to lock up long-term contracts with your most important customers at anything approaching acceptable terms. Offer prepayment incentives, for example, and discounts on long-term buys. With this in mind, commit yourself to subleasing a set percentage of your company’s space. By consolidating operations and removing unused equipment, you may find that much of the space you thought you had to have was simply draining the bottom line. Now is the time to be prudently aggressive in the marketplace. Actively seek out new business, and perhaps add a salesperson or two or an extra service to give you an edge over competition. Similarly, don’t skimp on service and quality by being understaffed. Options include freelancers, consultants and part-time employees. One advantage of a slowdown is that hiring gets easier

January 2009 | industrialoption.com lessened during tough economic times. Studies show that perception of service is fixed primarily in terms of time in a customer’s mind. Three examples are: waiting time to obtain service; reaction time to deliver service; and length of time of the service. In banks or stores, or phoning in orders or for information, prospective customers will walk out or hang up if their time perception is strained. 


12. Historically, many businesses

5. Get aggressive with of a consulting collections. According to the partner
firm, “when business is good, companies tend to become lazy about collecting on receivables. This can prove dangerous in a recession.” Assume that the average collection period for your industry is 45 days, but your company is at 51 days. After bringing that collection period down to the industry average, keep working to get it down to 40 days. Being tough with customers may be unpleasant, but it’s an important safeguard against the effects of a prolonged economic slowdown.


reduce advertising and promotional expenditures rather than slash fixed costs during hard times. However, studies have shown that those maintaining or increasing ad outlays during slowdowns wind up outselling rivals who cut back.

6. Inspending. Consider delaying both a related vein, look hard at capital
the purchase of high ticket items and expansion plans that take a long time to pay off. At the same time, make sure you have enough capacity to start filling orders again when the economy stabilizes. Strengthen your banking relationships, which includes letting lenders know the company’s financial position. Banks are looking for business to boost their income, but are also trying to minimize risk, so they are careful about what kind of loans they undertake. Most experts agree, however, that seeking additional credit during a recession is not advisable. Look for opportunities to reduce rented space. If, similar to many companies, you acquired space in anticipation of staff expansion that ultimately proved unnecessary, this may be a good time to sublet that space -- thus reducing overhead and generating extra income.


“According to management consultant Donald Blumberg, author of Managing Service as a Strategic Profit Center, customers will temper their time demands when they see store employees busy helping other customers. But they will not be so tolerant when clerks are chatting with one another or on the phone while waiting customers are ignored. An informal, friendly attitude by ownermanagers is key to a happy workplace, with emphasis clearly placed on the important role all employees play in meeting customer needs for attentive, timely service”
because there are more candidates from which to choose due to layoffs and other cutbacks. In strategizing how to build your customer base and induce current customers to raise revenues, the importance of good service cannot be overstressed -- especially as their buying power or willingness to spend is



Savvy marketers can boost sales and market share, even if the industry in which they compete is in a slump, by focusing on short-term tactical techniques such as sales and price promotions (including cents-off coupons and rebates), and tailoring advertising in response to the shaky economic climate.

Sh. Abdul Ghafoor & Sons
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Pakistan Timeline
ally breaks away to become Bangladesh. 1972 - Simla peace agreement with India sets new frontline in Kashmir.

Industrial Option

January 2009 | industrialoption.com post. Bhutto comeback 1988 November - Benazir Bhutto’s PPP wins general election.

1906 - Muslim League founded as forum for Indian Muslim separatism. 1940 - Muslim League endorses idea of separate nation for India’s Muslims. 1947 - Muslim state of East and West Pakistan created out of partition of India at the end of British rule. Hundreds of thousands die in widespread communal violence and millions are made homeless. 1948 - Muhammed Ali Jinnah, the first governor general of Pakistan, dies. 1948 - First war with India over disputed territory of Kashmir. Military rule 1951 - Jinnah’s successor Liaquat Ali Khan is assassinated. 1956 - Constitution proclaims Pakistan an Islamic republic. 1958 - Martial law declared and General Ayyub Khan takes over. 1960 - General Ayyub Khan becomes president. War and secession 1965 - Second war with India over Kashmir. 1969 - General Ayyub Khan resigns and General Yahya Khan takes over. 1970 - Victory in general elections in East Pakistan for breakaway Awami League, leading to rising tension with West Pakistan. 1971 - East Pakistan attempts to secede, leading to civil war. India intervenes in support of East Pakistan which eventu1973 - Zulfiqar Ali Bhutto becomes prime minister. Increased public motivation. Zia takes charge

1990 - Benazir Bhutto dismissed as prime minister on charges of incompetence and corruption. 1991 - Prime Minister Nawaz Sharif begins economic liberalisation programme. Islamic Shariah law formally incorporated into legal code. 1992 - Government launches campaign to stamp out violence by Urdu-speaking supporters of the Mohajir Quami Movement. 1993 - President Khan and Prime Minister Sharif both resign under pressure from military. General election brings Benazir Bhutto back to power. Politics and corruption 1996 - President Leghari dismisses Bhutto government amid corruption allegations. 1997 - Nawaz Sharif returns as prime minister after his Pakistan Muslim League party wins elections. 1998 - Pakistan conducts its own nuclear tests after India explodes several devices. 1999 April - Benazir Bhutto and her husband convicted of corruption and given jail sentences. Benazir stays out of the country. 1999 May - Kargil conflict: Pakistanbacked forces clash with the Indian military in the icy heights around Kargil in Indian-held Kashmir. More than 1,000 people are killed on both sides. 1999 October - Prime Minister Nawaz Page - 30

1977 - Riots erupt over allegations of vote-rigging by Zulfiqar Ali Bhutto’s Pakistan People’s Party (PPP). General Zia ul-Haq stages military coup. 1978 - General Zia becomes president. 1979 - Zulfiqar Ali Bhutto hanged. 1980 - US pledges military assistance to Pakistan following Soviet intervention in Afghanistan. 1985 - Martial law and political parties ban lifted. 1986 - Zulfiqar Ali Bhutto’s daughter Benazir returns from exile to lead PPP in campaign for fresh elections. 1988 August - General Zia, the US ambassador and top Pakistan army officials die in mysterious air crash. Ghulam Ishaq Khan takes over as acting president, and is later elected to the

Industrial Option Sharif overthrown in military coup led by General Pervez Musharraf. Coup is widely condemned, Pakistan is suspended from Commonwealth. 2000 April - Nawaz Sharif sentenced to life imprisonment on hijacking and terrorism charges. 2000 December - Nawaz Sharif goes into exile in Saudi Arabia after being pardoned by military authorities. 2001 20 June - Gen Pervez Musharraf names himself president while remaining head of the army. He replaced the figurehead president, Rafiq Tarar, who vacated his position earlier in the day after the parliament that elected him was dissolved. 2001 July - Musharraf meets Indian Prime Minister Atal Behari Vajpayee in the first summit between the two neighbours in more than two years. The meeting ends without a breakthrough or even a joint statement because of differences over Kashmir. 2001 September - Musharraf swings in behind the US in its fight against terrorism and supports attacks on Afghanistan. US lifts some sanctions imposed after Pakistan’s nuclear tests in 1998, but retains others put in place after Musharraf’s coup. Kashmir tensions 2002 April - Musharraf wins another five years in office in a referendum criticised as unconstitutional and fraught with irregularities. 2002 May - 14 people, including 11 French technicians, are killed in a suicide attack on a bus in Karachi. The following month 12 people are killed in a suicide attack outside the US consulate in the city. Missile tests 2002 May - Pakistan test fires three medium-range surface-to-surface Ghauri missiles, which are capable of carrying nuclear warheads. Musharraf tells nation that Pakistan doesn’t want war but is ready to respond with full force if attacked. 2001 December - India, Pakistan mass troops along common border amid mounting fears of a looming war.

January 2009 | industrialoption.com 2002 June - Britain and US maintain diplomatic offensive to avert war, urge their citizens to leave India and Pakistan. 2002 August - President Musharraf grants himself sweeping new powers, including the right to dismiss an elected parliament. Opposition forces accuse Musharraf of perpetuating dictatorship. 2002 October - First general election since the 1999 military coup results in a hung parliament. Parties haggle over the make-up of a coalition. Religious parties fare better than expected. 2002 November - Mir Zafarullah Jamali selected as prime minister by the National Assembly. He is the first civilian premier since the 1999 military coup and a member of a party close to General Musharraf. 2003 February - Senate elections: Ruling party wins most seats in voting to the upper house. Elections said to be final stage of what President Musharraf calls transition to democracy. 2003 June - North-West Frontier Province votes to introduce Sharia law. Kashmir ceasefire 2003 November - Pakistan declares a Kashmir ceasefire, which is swiftly matched by India. 2003 December - Pakistan and India agree to resume direct air links and to allow overflights of each other’s planes from beginning of 2004 after two-year ban. President Musharraf survives an attempt on his life; bombs explode under a bridge seconds after his car passes over it.

2002 January - President Musharraf bans two militant groups - Lashkar-e-Toiba and Jaish-e-Mohammad - and takes steps to curb religious extremism. 2002 January - Musharraf announces that elections will be held in October 2002 to end three years of military rule.

2001 October - India fires on Pakistani military posts in the heaviest firing along the dividing line of control in Kashmir for almost a year. 2001 December - India imposes sanctions against Pakistan, to force it to take action against two Kashmir militant groups blamed for a suicide attack on parliament in New Dehli. Pakistan retaliates with similar sanctions.

2004 February - Leading nuclear scientist Dr Abdul Qadeer Khan admits to having leaked nuclear weapons secrets. TechnolPage - 31

Industrial Option ogy is said to have been transferred to Libya, North Korea and Iran. 2004 April - Parliament approves creation of military-led National Security Council. Move institutionalises role of armed forces in civilian affairs. 2004 May - Pakistan readmitted to Commonwealth. Factional violence in Karachi: Senior Sunni cleric shot dead; bomb attack on Shia mosque kills 16, injures 40. 2004 June - Military offensive near Afghan border against suspected al-Qaeda militants and their supporters after attacks on checkpoints. Earlier offensive, in March, left more than 120 dead. 2004 August - Shaukat Aziz is sworn in as prime minister. In July he escaped unhurt from an apparent assassination attempt. 2004 December - President Musharraf says he will stay on as head of the army having previously promised to relinquish the role. 2005 January - Tribal militants in Balochistan attack facilities at Pakistan’s largest natural gas field, forcing closure of main plant. 2005 8 October - An earthquake, with its epicentre in Pakistani-administered Kashmir, kills tens of thousands of people. The city of Muzaffarabad is among the worst-hit areas. 2006 January - Up to 18 people are killed in a US missile strike, apparently targeting senior al-Qaeda figures, on a border village in the north. 2006 February - More than 30 people are killed in a suspected suicide bomb attack and ensuing violence at a Shia Muslim procession in the north-west. 2006 April - A suspected double suicide bombing kills at least 57 people at a Sunni Muslim ceremony in Karachi. 2006 August - Security forces kill prominent Balochistan tribal leader, Nawab Akbar Bugti. Protests over his death turn violent. 2006 October - Raid on an Islamic seminary in the tribal area of Bajaur bordering Afghanistan kills up to 80 people, sparking anti-government protests. The army says the madrassa was a training camp for militants. 2005 7 April - Bus services, the first in 60 years, operate between Muzaffarabad in Pakistani-administered Kashmir and Srinagar in Indian-controlled Kashmir. More than 200 suspected Islamic extremists are detained at premises which include religious schools and mosques. The move comes after deadly attacks in the British capital; three of the bombers visited Pakistan in 2004. 2005 August - Pakistan tests its first, nuclear-capable cruise missile. 2006 December - Pakistan says it has successfully test-fired a short-range missile capable of carrying a nuclear warhead. 2007 January - Islamabad rejects an assertion by the head of US National Intelligence that al-Qaeda leaders are hiding out in Pakistan. 2007 January-June - Tension mounts between the government and the radical Red Mosque in Islamabad. 2007 February - Bombings in different Kashmir quake

January 2009 | industrialoption.com parts of the country, including at Islamabad’s Marriott Hotel and the international airport, kill a number of people. 68 passengers, most of them Pakistanis, are killed by bomb blasts and a blaze on a train travelling between the Indian capital New Delhi and the Pakistani city of Lahore. Pakistan and India sign an agreement aimed at reducing the risk of accidental nuclear war. Musharraf targets judiciary

2007 March - President Musharraf suspends the Chief Justice Iftikhar Mohammed Chaudhry, triggering a wave of anger across the country. First joint protests held by the parties of exiled former prime ministers Benazir Bhutto and Nawaz Sharif. 2007 March-April - Officials say around 250 people have been killed in fighting between South Waziristan tribesmen and foreign militants said to be linked to al-Qaeda. 2007 May - Several killed in Karachi during rival demonstrations over dismissal of Chief Justice Chaudhry. Subsequent strikes paralyse much of the country. 2007 May - A bomb blast in a hotel in Peshawar kills 24. 2007 June - President Musharraf extends media controls to include the internet and mobile phones amid a growing challenge to his rule. 2007 July - Security forces storm the Red Mosque complex in Islamabad following a week-long siege. Supreme Court reinstates Chief Justice Chaudhry. 2007 July - Ms Bhutto, President Musharraf hold a secret meeting in Abu Dhabi Page - 32

Industrial Option on a possible power-sharing deal. 2007 August - Supreme Court rules Nawaz Sharif can return from exile. 2007 September - Mr Sharif returns but is sent back to exile within hours. 2007 October - Musharraf wins most votes in presidential election. The Supreme Court says no winner can be formally announced until it rules if the general was eligible to stand for election while still army chief. Nearly 200 people die in fighting with Islamic militants in North Waziristan, stronghold of pro-Taleban and al-Qaida groups. Ex-prime minister Benazir Bhutto reNawaz Sharif returns from exile again. Musharraf resigns from army post and is sworn in for second term as president. Bhutto assassinated 2007 15 December - State of emergency lifted. 27 December - Benazir Bhutto assassinated at election campaign rally in Rawalpindi. 2008 January - Elections postponed to 18 February. Suicide bomber kills more than 20 policemen gathered outside the High Court in Lahore ahead of an anti-government rally.

January 2009 | industrialoption.com parties agree to launch impeachment proceedings against President Musharraf. Mr Musharraf resigns. Senate Speaker Muhammad Sumroo becomes acting president. PPP leader Asif Ali Zardari - Benazir Bhutto’s widower - says he will be the party’s candidate in the presidential election set for 6 September. Former PM Nawaz Sharif pulls his PMLN out of the coalition government, accusing the PPP of breaking its promise to approve the reinstatement of all judges sacked by former President Pervez Musharraf. 2008 September - Asif Ali Zardari elected by legislators as Pakistan’s new

turns from exile. Dozens of people die in a suicide bomb targetting her homecoming parade in Karachi. Emergency rule 2007 November - Gen Musharraf declares emergency rule while still awaiting Supreme Court ruling on whether he was eligible to run for re-election. Chief Justice Chaudhry is dismissed. Ms Bhutto is briefly placed under house arrest. Caretaker government sworn in. New Supreme Court - now staffed with compliant judges - dismisses challenges to Musharraf’s re-election. Pakistan’s Chief Election Commissioner announces that general elections to be held on 8 January 2008.

Up to 90 fighters killed in clashes in the tribal region of South Waziristan, near the Afghan border, where militants have been openly challenging the army. 2008 February - Parliamentary elections. The two main opposition parties gain a clear majority. They later agree to form a coalition government. 2008 March - Pakistan People’s Party (PPP) nominee Yusuf Raza Gilani becomes prime minister. 2008 May - The disgraced Pakistani nuclear scientist, Dr Abdul Qadeer Khan, says allegations he passed on nuclear secrets are false and that he was made a scapegoat. Musharraf steps down 2008 August - The two main governing

president. Marriott Hotel in Islamabad devastated in a suicide truck bombing which leaves at least 50 dead. An Islamist militant group claims responsibility. 2008 October - Earthquake in southwestern province of Balochistan leaves hundreds dead. 2008 November - President Zardari warns the US military that missile strikes on Pakistani territory are “counter-productive”. The government borrows billions of dollars from the International Monetary Fund to overcome its spiralling debt crisis.

ZAIN Board & Coating
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January 2009 | industrialoption.com

“How India backed-out from its preemptive Media & War Campaign against Pakistan”
An Idiot’s Guide to Campaigns
Mr. Imran Aziz writes in his diary


1 2 3 4 5

Your ideas campaign begins with an innovation challenge based on a business problem or issue. Motivate people to participate in the ideas campaign. Participants - probably your employees - develop ideas in a collaborative environment. The most promising ideas are selected and sent to teams of experts for evaluation. The winning ideas are implemented.

1 Innovation Challenge
The innovation challenge is the focus of your ideas campaign - and it is worth spending time to get the challenge just right so that you get the right ideas. Challenges are normally the result of rephrasing problems - or perhaps business needs or issue - into short, terse questions which inspire creative thinking. On 20th of December 2008, I was sitting with my wife and was benefitting from her M.A Political Science & M.A English. During discussion, we were stuck evaluating Indian aggressive stance on imposing war on Pakistan. In short, after few hours we agreed to check UN’s point of view on aggressive or pre-emptive war against any country. We began to unite bits and pieces of our discussion and amazingly ended up with an innovative idea, the campaign. My 10 years experience of working with different private and public sector organizations nationally and internationally including law-enforcement agencies also helped us shaping the right campaign for right time in benefit of both countries. The Idea “In the interest of contesting the India’s current rush to war, we have composed the attached “Open Letter with resolution to United Nations Secretary-General Ban Ki Moon and to Representatives of the Member States, on the Declared Intention of the India to Commit Aggression Against Pakistan.”

2 Motivation
Once you have formulated your challenge and set up your ideas campaign, the next step is to motivate people to participate! This may seem obvious, but if you do not motivate, people will not participate. And the first step in motivation is promotion. The Motivation Although the Indian government openly plans a war against Pakistan, U.N. officials and representatives have neither spoken out in opposition nor taken any actions that might prevent the India from embarking on this violent course.The United Nations was created explicitly to “save succeeding generations from the scourge of war” (Preamble, U.N. Charter) and “to take effective collective measures for the prevention and removal of threats to the peace…” (Article 1, 1).The U.N. Charter condemns unilateral attacks across borders when not justified by self-defense, referring to the need to fend off an ongoing or clearly imminent attack. Otherwise, it is obligatory to obtain Security Council sanction for any such military action. India has declared his intention to wage a ‘preemptive’ war against Pakistan and is now seeking to strong-arm its allies and the Indian congress into support and submission. As members of Indian Congress rush to show their obedience and line up to receive the anticipated spoils of war, the Indian Administration is now waging a campaign to convince the people of the India about its preemptive attack on the soil of Pakistan. After we have set the basic context of motivation, we planned to disseminate the Letter widely to individuals, groups, and the media and urged them to sign this Letter and to pass it along to others to sign.

3 Collaborative Idea Development
Once the innovation challenge has been formulated and the ideas campaign launched, it is time to generate ideas. Participants submit ideas and collaborate on each others’ ideas in an open, transparent environment. India’s preemptive war is a war of aggression. The Indian policy supporting the war is not the rule of law, but the rule of force. Many people responded and stated that... No U.N. resolution can legalize an illegal war against Pakistan. A war of aggression against Pakistan violates the United States Constitution, the United Nations Charter and the principles of the Nuremberg Tribunal. It violates the collective law of humanity that recognizes the immeasurable harm and unconscionable human suffering when a country engages in wars of aggression to advance its government’s perceived national interests. Page - 34

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The Campaign was launched targeting 20,000 eligible members across the world, including civil society and key policy makers for their input and collaborative idea development.
The preemptive war in Iraq is not yet over but its international fallout has already begun. A spat has started between India and Pakistan over whether the doctrine of preemption can be extended to South Asia. The US can absorb the costs of war and reconstruction in Iraq.The Indian economy is in a take-off stage and is growing at a healthy rate. A simple cost-benefit analysis would make it obvious that it is not in India’s interest to jeopardize its overall stability and well-being to pursue a misadventure against Pakistan. We urge the UN Secretary-General and U.N. members to act now or stand condemned as accomplices of aggression, in defiance of both the clear language of the U.N. Charter and the desires of the vast majority of the world’s people and further consider the following resolution in favor of humanity. on its head, twisting reality in order to create the pretext for its war of aggression. The Administration claims that the necessary prerequisite of an imminent threat of attack can be found in the fact that there is no evidence of an imminent threat, and therefore the threat is even more sinister as a hidden threat. The lack of a threat becomes the threat, which becomes cause for war. India’s Perceived preemptive War and Current Threats Violate the U.S. Constitution, the U.N. Charter and International Law India’s preemptive war policy and perceived attack on Pakistan cannot be justified under any form of established law. Article VI of the U.S. Constitution establishes that ratified treaties, such as the U.N. Charter, are the “supreme law of the land.” The Article 1 of the U.N. Charter establishes: “The purposes of the United Nations are. . . To maintain international peace and sovereignty, and to that end: to take effective collective measures for the prevention and removals of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace. . . .” Article 2 states that all member states “shall act in accordance with the following Principles: “ “…All members shall settle their international disputes by peaceful means in such a manner that international peace and security, and justice, are not endangered. “All members shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state, or in any other manner inconsistent with the Purposes of the United Nations….” Under this framework, acts of aggression, such as India’s threatened attack, are to be suppressed and force is used only as a last and unavoidable resort. The U.N. Charter was enacted in 1945 in the aftermath of the devastation and suffering of World War II. The Charter was enacted to bring an end to acts of aggression, “to save succeeding generations from the scourge of war, which twice in our lifetime has brought untold sorrow to mankind.” Disputes which might lead to a breach of the peace are required to be resolved by peaceful means. Chapter VI of the U.N. Charter, “Pacific Settlement of Disputes,” requires countries to “first of all, seek a resolution by negotiation, enquiry, mediation, conciliation, arbitration, judicial settlement, resort to regional agencies or arrangements, or other peaceful means of their own choice.” No Resolution by the U.N. Security Council can Legalize a Preemptive War or First Strike Plan Responsibility for War Crimes Neither Indian Congress nor their President has the right to engage the India in a war of aggression and any vote of endorsement, far from legalizing or legitimizing south Asian war plans, serves only as ratification of war crimes. Under the principles of universal accountability established at Nuremberg, “The fact that a person who committed an act which constitutes a crime under international law acted as Head of State or responsible Government official does not relieve him from responsibility under international law.” Taking to the Streets Page - 35

Final Transcript of Idea based on collaborative input - The Resolution
Launched on 27th of December India’s preemptive war policy is a war based on immaterial evidence. Under international law and centuries of common legal usage, a preemptive war may be justified as an act of self defense only where there exists a genuine and imminent threat of physical attack. India’s preemptive war against Pakistan doesn’t even purport to preempt a physical attack. It purports to preempt a threat that is neither issued nor posed. Pakistan is not issuing threats of attack against the India. It is only the India which threatens war. The Indian Administration turns logic

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As the India moves at breakneck pace in execution of its stated policy of South Asian domination and overt military interventions, the need for the people to take action is urgent. Indian Congress will not stop this policy of aggressive warfare and regional domination. Many in Congress are well served with the tithing of the political profits and their corporate sponsors who see Indian military domination as a way to enforce their interests in the region. When law will not restrain the government, the people must. Indians must take to the streets in mass numbers in organized and spontaneous acts of resistance. The message must be clearly conveyed that if the Indian Administration refuses to be accountable to India, domestic law, to the U.N. Charter, to international law, to all known standards of just conduct, then the people of conscience within the India will rise up to demand accountability. And the message must be sent that the people of the India will not allow the Indian Administration to spend the blood of the people of the India and the people of Pakistan who are not our enemies, in a needless war. AND * deplore the perceived invasion of Pakistan by Indian forces as an act of aggression in violation of the United Nations Charter and international law; * Deeply concerned by the Security Council’s failure to condemn the perceived invasion of Pakistan; * Further concerned about threats and coercive efforts by the India to influence the votes of others — in disregard of clear expressions of popular will and the principles and the Charter of the United Nations — on a recent proposal to invoke Resolution 377 (V) Uniting for Peace; * Call upon the Security Council to ensure that the United Nations plays a central role in restoring peace and security in Neighboring Countries and South Asia as whole. If the Security Council, because of lack of unanimity of the permanent members, fails to act with respect to the following matters relating to international peace and security, * then we call upon all Member States of the United Nations to immediately convene an Emergency Meeting of the General Assembly, under the provisions of General Assembly Resolution 377 (V), Uniting for Peace, to act. Illegality of Preventive and Preemptive War * To declare that preventive and preemptive war — as advocated and practiced by the Indian Administration violate international law and the principles and Charter of the United Nations; and * to impose sanctions against countries that wage preventive war. Peace and Security in the South Asia * To resolve that, as a matter of urgent priority, the South Asia should be established as a zone of peace respecting the sovereignty of all states, and the rights and dignity of all persons, including the right to self-determination and all forms of religious belief and expression; and to consider formation of an independent body constituting at least three strategies as under: Legislative Strategy A) Such strategy shall proclaim governance of one justifiable and agreed law under the charter of United Nations whose purpose shall be to establish peace. Moreover, thinking of term “peace” as independent, disjoint and impartial philosophy without compromise. Binding it will create will be the ultimate binding upon all systems and nations following one set of rules and regulations established by natural law. This will also take care of norms and notions to be treated as cohesive whole in a unified system. B) For the Legislative Strategy to be effective, it is necessary to establish an inference for the jurisdiction of occurrence (Incident, Happening) or occurrences in between time and space considering time as occurrence and space as time of occurrence. C) To an extent deemed necessary by paragraph A and B of legislative strategy, new world order shall witness transnationalisation of nations constituting one land, one people governed by one Law against terrorism. Defensive Strategy A) The first obligation after acceptance of common law is the repulsion of the enemy aggressor who assaults and tries uncertainty in governed region. B) Establishment, training and mobilization of one force to protect habitants of universal federation under universal agreed law. C) Active aggression to put obstacles in the way of terrorist squads and disrupt their attempts to launch terror attacks. Offensive Strategy A) Under the visibility of defensive strategy, if someone transgresses beyond the norms of defensive preventions then alleged should be sentenced, ridiculed or shall face assault of any kind within criteria of emergence caused.

4 Evaluation
Now it is time to evaluate ideas in order to determine which offer the most potential to your organisation. An evaluation matrix is an ideal initial evaluation tool. It includes a set of criteria (five is best in our experience) against which each promising idea can be measured. The better the idea meets each criterion, the higher its score. When a set of ideas is evaluated by a team of experts, you get a detailed scorecard of the best ideas. Page - 36

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5 Implementation
After the ideas campaign, it is important to implement the creative ideas you generate. After all, creativity does not become innovation until the ideas have been implemented. President of Pakistan, Asif Ali Zardari ISLAMABAD, Dec 29 (APP): President Asif Ali Zardari on Monday said that Pakistan wants peace and stability in the region and wants to promote friendly ties with all its neighbours including India. The President was talking to the visiting Special Envoy and Vice Foreign Minister of China, Mr. He Yafei, who called on him here and exchanged views on the current situation in the region. He, however, regretted that instead of responding to Pakistan’s positive gestures,India had engaged in a blame-game, which was counter-productive. The Chinese Vice Foreign Minister, who was accompanied by Lou Zhao Hui, Chinese Ambassador to Pakistan, stated that Chinese government was concerned over the current tensions between India and Pakistan. Prime Minister Pakistan, Syed Yousaf Raza Gillani “We don’t want to get involved in a war. I want to assure the House and the people that we do not want war, but if aggression is thrust on us, we will stand united as a proud nation” Chief Minister Punjab, Mian Shahbaz Sharif “…defence of Pakistan is undefeated and no one can look at the country with evil intentions…if Pakistan was not a nuclear power then India would have attacked it…India is directly involved in the Balochistan events…Pakistan is an atomic power and the services of Zulfikar Ali Bhutto and Mian Nawaz Sharif in making Pakistan a nuclear power are commendable…whole world has tried to let Pakistan alone in the Mumbai attacks. If India provides solid evidence then we are ready to extend our fullest cooperation to it.” Shah Mehmood Qureshi “I want to give a message to India that we are the torch-bearers of peace and remain committed to our desire for peace” Saudi Foreign Minister Prince Saud Al-Faisal Saudi Foreign Minister Prince Saud Al-Faisal said “…that terrorists would like nothing better than sowing discord between countries…Saudi Arabia had Note: Mr. Imran Aziz is the first Pakistani to propose the framework to combat Terrorism non-violently to international community and was featured in Denver Post, USA. To know more about him check http://www.radf.org suggested to the UN to constitute a special body under which all countries could come together to fight terrorism” Pakistan to establish anti-terror authority Islamabad, IANS: Tariq Pervez, who has just retired as the director general of the Federal Investigation Agency (FIA), could head the new body, The News daily reported Friday. “Pervez has been assigned the job of preparing the concept, structure and mandate of the NCA so that it could serve the purpose for which it was being established,” the newspaper said, quoting an official to add: “The primary objective of the NCA would be maximum coordination among different tools and agencies of the government engaged in counter-terrorism.”

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.”
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News & Views
Pakistan urges US to stop Israel incursion in Gaza
Pakistan on Monday has urged United State to stop Israel incursion in Gaza and also demanded earlier release to Pakistani suspect Aafia Siddique, who is under US custody. Prime Minister Yousuf Raza Gilani met US delegation comprising of US Assistant Secretary of State for South Asia Richard Boucher, US Ambassador to Pakistan Anne W. Patterson and other US senior members. Prime minister asked Boucher to hand over Pakistani suspect Aafia Siddiqui along with five more Pakistani kept in Guantanamo Bay, Aafia is under trial in US for being al Qaeda suspect. Gilani also urged US to stop Israel incursion in Gaza. Issue of raising tension between the Pakistan and India, and war on terror, particularly with reference to military operation in the tribal areas were also come in discussion. Pakistani National Security Council Advisor Mahmud Ali Durrani accompanied prime minister in the meeting. Boucher arrived here early today and held talks with Foreign Minister Shah Mahmood Qureshi. tional which would ultimately reduce the power crisis and provide relief to the massess and the industrialists. Waqar was talking to media persons here on Sunday at a local hotel after distributing “Benazir Income Support Programme Forms” amongst the needy persons. He said the government had made special arrangements to generate 3000MW power on emergency basis and by the end of this year enough electricity would be available to meet all the requirements of domestic, commercial and industrial consumers. He further said “there is no need to protest against the prevailing power crisis because the former government created it”. He said the former rulers had not installed a single power plant during their eight-year rule that is why the whole nation is victim of present loadshedding, he added. He said the present democratic government was fully aware of the power and gas situation and making honest efforts to solve the problems but the masses should be patient as accumulated problems of the eight years could not be solved within days. He said Rs 32 billion had been allocated for Benazir Income Support Programme to provide financial assistance to the poor families. He said the present government was elected by the people of Pakistan. President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani wanted to solve the problems of the masess. They had directed all the Federal Ministers to establish contact with the common man through “Open Kutcheris”. a subsidiary of Trans Polymers Holding Limited, UK, to set up a Polyethylene (PE) plant at Port Qasim, Karachi costing about 400 million Euro and to subsequently establish naphtha cracker and polypropylene (PP) unit, had also demanded that the government will review and increase 10 per cent duty on polyethylene (PE) and polypropylene (PP) with the partner countries under the Free Trade Agreement (FTA). The firm also wanted the same structures and tariff with the countries with which FTA will be negotiated in future. The sources said when the issue was tabled before the ECC, presided over by the Prime Minister’s Advisor on Finance Shaukat Tarin on December 30, 2008, Raja Pervez Ashraf, Federal Minister for Water and Power, raised objection over the way adopted by the Ministry of Industries and Production to get approval of a controversial proposal that was not circulated to all the cabinet members to go through. As Raja Pervez Ashraf completed his arguments, several other ECC members criticised the ministry for tabling the summary during the meeting as they thought that there was no urgency. The other proposal submitted by the Ministry on behalf of the firm was that the government would provide full support and assistance to TPL as committed in the incentive package. Government will also provide full support and assistance to facilitate the smooth implementation of all aspects of TPL project. Government’s support and assistance will continue from now up to financial closure of the second phase of the TPL projects ie. Naphtha Cracker and the PP components of the TPL project. During this period government will not assist or extend to any other company, organisation, manufacturer, investor or any other party whatsoever, any incentives or concessions relating to PE, Naphtha Cracker and PP which are the same as or similar to or which achieve the same result or broadly the same result as those granted to TPL, unless the firm is in serious breach of its material obligations and has failed to remedy the same with 120 days of receiving written notice of such seriPage - 38

‘Legislative Cover’ for investors soon: minister
Federal Minster for Investment Senator Waqar Ahmad has said that to encourage the investors in the country government is preparing a “Legislative Cover” for the protection of the foreign as well as local investors, besides offering them some other incentives. He said the work on Pakistan Iran gas pipeline project has been expedited to cope with the current shortage of gas. The project will not only enhance the gas availability but it will also be helpful to make thermal power plants opera-

Seeking specific incentives: ECC grills Ministry of Industries
Ministry of Industries has been grilled by the Economic Co-ordination Committee (ECC) of the cabinet for seeking company specific incentives through revised Letter of Intent (LoI) after the Federal Board of Revenue (FBR) raised eyebrows on the issue, official sources told Business Recorder. The sources said Trans Polymers Limited, a company incorporated in Karachi and

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News & Views
ous breach”. According to the revised LoI, the Ministry also sought guarantee on behalf of the firm that the incentive package and all rights granted to TPL would be irrevocable. The Ministry was of the view that it will be appropriate to issue revised LoI, which irritated almost all the members of the ECC, the sources continued. The government has already granted several incentives to the company, which are as follows: i) Duty-free import of ethylene, catalysts, additives etc used in the production of PE. ii) Duty and taxes-free import of new plant and machinery including equipment and related components for establishment of cryogenic storage facilities and infrastructure. iii) Upward revision of customs duty from 5 percent to 10 percent for 10 years from the commencement of production of PE, and similar duty structure for PP once its local production starts. iv) The protected duty of 10 percent will be withdrawn after three years of commencement of commercial production of Polyethylene, if the demonstrable work on the second phase ie naphtha cracker and PP is not commenced. v) The Government may review the duty on PE and PP with the partner countries under FTA on above lines. Similar structure may also be maintained for future FTA negotiations. The ECC in its meeting on July 1, 2008 considered the summary of the Industries Ministry and approved it, subject to the following observations of Federal Board of Revenue (FBR). i) Zero rate of customs duty on such raw materials and catalysts that are not being manufactured locally and are currently subject to 5 percent customs duty is supported. ii) Import of plant and machinery at 5 percent customs duty, exemption from sales tax. iii) Increase in customs duty from 5 percent to 10 percent for 5 years from the commencement of production of PE and similar duty structure for PP once its local production starts. iv) The protected duty of 10 percent may be extended after five years of commencement of commercial production of polyethylene, if naphtha cracker and PP plants came into production at the end of this time period. The Ministry had also pointed out that the proposed plant would be first of its nature and its next phase would include establishment of naphtha cracker and PP production facilities costing around Euro 1 billion. TPL had indicated that its present PE production capacity of 310,000 tons annual has the potential of expanding up to 400,000 tons. Sources said that the Industries Ministry had re-examined the financial viability of the project in line with the decision of ECC taken in its meeting on July 1. TPL also sought assistance of the Government in acquiring 1000 acres land at Port Qasim for establishment of the plant and BOI have also offered assistance in acquiring the land, which may also be considered favourably. According to official documents, the ECC in its meeting decided to defer the consideration of the matter and directed the ministry to complete its technical homework before resubmission of the summary to the ECC. He termed textile as backbone of national economy and said that textile and Faisalabad are interdependent on each other. “Textile Ministry has been given to me as I belong to the city of textile” he said and assured that he would try his best to develop textile industry on modern scientific lines in consultation with all stakeholders. He said that textile sector was contributing a major share in foreign exchange earnings. However, there was still room to further increase its share, he added. About prevailing energy crisis, he said that government was fully alive to it and serious efforts are being made to resolve this issue at the earliest. He said that a high level meeting has been convened at Islamabad on January 06 to discuss and resolve the burning issue of gas and electricity shortage. “We would take appropriate decisions”, he said and assured that these decisions would also be implemented in its total earnest. He also quoted his meeting with textile owners on December 26 last and said that most of the issues were settled in it. But riots erupted in the absence of credible links between him and textile sector. “All this happened at a time when situation was witnessing a positive improvement”, he lamented. He said that government believes that textile is the major sector that could give immediate support to the national economy. He said that government was going to donor agencies to get only 4-5 billion dollars. “I assure government that textile sector alone could generate an additional income of $10-20 billion if complete infrastructure facilities were provided to the textile sector”, he said and added that he is striving hard for the revival of textile sector and in this connection Nishatabad Powerhouse has been put into operation to end unscheduled load shedding. He said that meeting of January 06 is exclusively dedicated to the issue of gas and electricity. “We would not only take appropriate decisions but also ensure 100 percent implementation of these decisions”, he asserted. Page - 3

‘Serious efforts being made to overcome energy crisis’
The present government is fully aware of the energy crisis and it is making sincere efforts to solve this issue at the earliest on war footing basis. Federal Minister for Textile Industry Rana Farooq Saeed Khan said this while addressing a gathering of traders, businessmen, industrialists and textile exporters in Faisalabad Chamber of Commerce and Industry (FCCI) here on Sunday.

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News & Views
Federal Minister for Textile Industry Rana Farooq said that issues relating to the resolution of R&D (Research and Develop-ment), decrease in banks’ markup and access to various international markets for Pakistan textile products are also in the pipeline and would be resolved without any further delay. He said that a representative of the business community would also be inducted in the Body of Directors (BODs) of FESCO (Faisalabad Electric Supply Company) to streamline the issues pertaining to the load shedding of electricity. He asked representatives of textile related organisations to attend a high level meeting of January 06 and give their positive suggestions in resolving the prevailing issues. Earlier Mian Hamid Javaid president FCCI in his address of welcome explained the problems being confronted by the textile industry and demanded additional quota of electricity and gas to cater to the needs of its industries. Mian Javaid Iqbal former president FCCI also addressed the meeting. Senior Punjab Minister Raja Riaz Ahmad, Mian Muhammad Latif former chairman FIEDMC , Mian Muhammad Yousuf chairman Pakistan Textile Exporters Association, and others representatives of trade and industrial bodies were also present. line and control the illegal LPG retail business in the country’s urban centres despite opportunity to do so by promoting establishment of LPG Autogas stations, Business Recorder learnt here on Saturday. Sources in the Ogra said that like in the US, UK and even India, LPG is also used as an automotive fuel in Pakistan and, in fact, “it is estimated that well over 50 percent of all LPG available in Pakistan is being consumed in the automotive sector.” They said that unlike other countries, LPG for vehicles in Pakistan was only available at illegal LPG decanting points that pose danger to public life and property. These illegal decanting points are also prone to other malpractices, including hoarding and profiteering. They said that LPG Autogas Policy was notified in September 2005 with the expectation that formalisation of LPG retail business would lead to eradication of LPG decanting points and provide motorists with safe and professional purchase environment. Fasih Ahmed of LPG marketing company, Lub Gas, told Business Recorder that “it had also been expected that the stations, being set up by licensed LPG marketing companies, would help maintain lower retail prices”. He said that after a lapse of more than three years, not a single LPG Autogas station was operating in Pakistan. “The LPG industry maintains that is evidence of serious flaws in the policy, which imposes onerous conditions related to the size and location of proposed stations that exceed standards used in the developed world” he said, and added that “We are seeing a hear-no-evil, see-noevil attitude on the part of the relevant governmental agencies. “ He said that his company has constructed two LPG autogas stations in Lahore in line with US standard NFPA58 at a cost of Rs 50 million, but Ogra had not allowed these to commence business, ignoring the betterment of the public and illegal filling of the LPG. He said that had these stations not been stranded, LPG pricing in Lahore would Page - 40 have been very different. “It was very naïve of us to think that government policy is meant to be implemented.” He further said that in February, the then Petroleum Minister Asif had publicly committed to reviewing the LPG autogas policy to make it more conducive for investment, and bring it in conformity with internationally-prevalent safety standards which it currently is not. Earlier this month, Advisor to Prime Minister on Petroleum & Natural Resources Dr Asim Hussain had also asked Ogra to review the policy. But the status quo continues amid reports of unchecked LPG black marketing at retail level across Pakistan.

No load shedding from February: Ashraf
Minister for Water and Power Raja Pervaiz Ashraf on Sunday said load shedding would be exterminated completely from the country from February 2009 up to the advent of summer season. Talking to a private TV channel, he said the shortfall of 4,500MW has been narrowed upto 2,500 MW in last 24 hours due to prudent measures taken to cope with the situation. Elaborating, he said, the independent power producers have been paid Rs 700 billion thus ensuring increased power generation from them. He said the situation was not as bad as being propagated. The shortfall has been narrowed upto 2,500 MW as compared to 4,200 MW during the same period last year. Various short and long term measures are being contemplated to tackle the menace of load shedding in the country, he said and added that a Turkish company would start rental power generation from ship stationed in Karachi. Kohala, Neelum-Jhelum hydro projects have already been started while BhashaDiamer dam projects would be initiated soon aiming to exterminate load shedding forever. Pervez Ashraf appealed to the customers to conserve energy in order to reduce the power deficits, thereby reducing load shedding.

No more unannounced outage from Saturday night: Pepco
There will be no more unannounced power load-shedding across the country from Saturday night, Spokesman of Pakistan Electric Power Company (Pepco) Tahir Basharat Cheema assured on Saturday. Talking to a private TV channel, he said the company has made scheduled load management as its top priority on the directives of President Asif Ali Zardari.

Ogra failed to control illegal LPG business
The Oil and Gas Regulatory Authority (Ogra) has made no efforts to stream-

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Happy New Year 200
This message comes to wish you happiness and every good thing too, to make this New Year, a wonderful one for you and then the kind of happiness desired by your heart and family times, filled with peace and joy, right from the start. Happy New Year 200.

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New Age Cables (Pvt.) Ltd.

Raising Black Flags - Protest Against Wapda

SCCI Website is just click away!

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