Pakistan: New Vistas in Agriculture

Pakistan is among the top producers of cotton, rice, sugarcane, wheat, mango, kinnow (tangerine) and some other crops. The country is also among the top ten largest producers of milk. However, nearly 10 percent of food grains and up to 40 percent of fruits produced goes stale before reaching the market. Only 5 percent of total milk produced in the country is packed in tetra packs. This on one hand deprives growers of their rightful return and on the other hand does not allow the country to earn foreign exchange, needed most desperately for the economic growth.

 

In an attempt to help the farmers boost production and yield, the State Bank of Pakistan (central bank) embarked upon ambitious agri lending program. Now the annual disbursement to farmers is inching close to Rs400 billion or US$4 billion. The endeavor is fully supported by insurance companies operating in the country. This initiative has helped Pakistan in joining ‘club of wheat exporting countries’. At the close of current sugarcane crushing season, refined sugar output is likely to touch 4.7 million tons with exportable surplus of 0.5 million tons. The country is also likely to get nearly 13.5 million bales of cotton. Pakistan is already exporting huge quantity of rice, especially ‘Basmati’, with unique aroma. However it continues to import edible oil worth US$2 billion annually.

To further reinforce support to farmers the central bank offers loans for construction of modern warehouses on concessional interest rate. The need for warehousing facilities can be gauged from the fact that Pakistan produces nearly 40 million tons of different cereals, out of this wheat alone accounts for 25 million tons. As against this, the country has warehousing capacity of around 5 million tons. Storage of grains in ‘technical not fit warehouses’ is the single biggest reason of nearly 10 per cent going stale and not being suitable for human consumption.

In yet another initiative the central bank has formed a working group for developing ‘Warehouse Receipt Financing’. The working group will have representatives from leading commercial banks, Islamic banks, International Finance Corporation (IFC). The central bank aims at working closely with Pakistan Mercantile Exchange (PMEX), financial institutions, farmers and other stakeholders to structure and rollout system of warehouse receipt financing in the country on fast track basis. 

Deputy Governor of the SBP, Saeed Ahmad recently chaired a meeting on formulation of the Group. Talking to the representatives of different stakeholders, he said “Adoption of warehouse receipt financing system would facilitate development of efficient and accessible rural financial system. Development of physical trade and marketing system of commodities would improve performance of the agricultural sector. Financial institutions would find it profitable to lend money for the construction of new warehouses”.

This initiative offers tremendous opportunities to companies involved in this trade around the globe. These entities can form joint ventures with Pakistani entrepreneurs by involving IFC; mobilize funds globally or by listing the companies at the Karachi Stock Exchange. Central bank already has a plan for extending soft-term loans for the construction of warehouses. Those interested in construction of warehouses can also approach National Bank of Pakistan enjoying the largest share in lending to farmers for inputs and developmental work.

For details contact Shabbir Kazmi at shkazmipk@gmail.com or call 92-300-8980112

Pakistan awaits foreign investment in sugar industry

Pakistan is an agrarian society and two of its large scale industries, textiles and sugar, are agro based. While textile and clothing industry contributes around 60% to country’s exports, sugar industry remains the driving engine of rural economy.
Two of the leading sugar producing countries, Brazil and India, are likely to face substantial reduction in sugarcane output due to drought like situation this year. As against this Pakistan is expected to get bumper sugarcane crop, especially in Sindh. Historically, the province has been producing sugar much above the demand and also has the potential to export sugar as well as molasses.
It is important to note that Pakistan has an installed capacity to produce 9 million tons sugar annually as against an estimated demand of around 4 million tons. However, the mills have been working at around 50% capacity utilization due to shortfall in sugarcane production.
Pakistan looks forward to those foreign investors who can help in achieving higher sugarcane production by boosting yield. At present the country gets around 55,000tons/per hectare, which is low as compared to the global average. While recovery in Sindh ranges from 8.5% to over 10.5%, recovery in Punjab hovers from 7.5% to around 10.5%.
Ideally, Pakistani millers intend to produce more molasses for export because its local consumption is relatively low. The added advantage is that if the country succeeds in boosting production of molasses and ethanol. Popularizing E-10 use will also enable the mills to crush more sugarcane, which will improve production of sugar in the country. Better capacity utilization will help in optimizing cost of sugar production.
Pakistan also faces acute shortage of electricity and sugar mills can collectively deliver more than 3,000MW electricity. If this option is used not only income of mills will improve but earnings of mills as well as farmers will also improve.

Pakistan: Energy Sector Victim of Incongruous Policies

A closer look at Pakistan’ energy sector reveals that exploration and production activities have remained lackluster, refining sector suffers from underutilization of capacity and country becoming more dependent on imported POL products. This becomes all the more pinching because country has enviable success record but exploration and production activities are being adversely impacted by deteriorating law and order situation. Pakistan's GDP growth has remained subdued mainly because of lingering energy crisis. Only the Government of Pakistan and policy planners can be held responsible for this. For further details visit shkazmipk.com.

 

Gaza Strip: The Largest Open Air Prison

Prominent political thinker Noam Chomsky has described Gaza Strip as world’s largest open air prison. Amnesty International has called Israeli regime to immediately end the illegal blockade it has imposed on the Gaza Strip since June 2007. Over 1.7 million people of Gaza are living under extremely distressful conditions due to Israel’s blockade, together with restrictions imposed by Egypt which is collectively punishing Gaza’s population in violation of international law, says Philip Luther, Middle East and North Africa Director at Amnesty International. While Israel in committing the worst atrocities against Muslims, some of the Arab countries are strengthening relationship with the Zionist state, especially after singing of the historic Geneva Accord between P5+1 and Iran. According to a report published in an Israeli daily Yedioth Ahronoth recently, President Shimon Peres appeared before 29 foreign ministers from the Persian Gulf states, Arab League countries and other Muslim nations. Son of Saudi Arabian King was also among the participants of the meeting. For details read and share my latest blog, visit shkazmipk.com

United States to remain in Pak Afghan region beyond 2014

One of my apprehensions expressed in a blog dated as back as 21st August 2012 was that United States would not pull out all its troops from Afghanistan in 2014. It will create reasons for the stay of its troops. This apprehension has come true as Assistant Secretary of State for South and Central Asia Nisha Desai Biswal said in plain words “The United States will not go away from the Pak-Afghan region after 2014”. “Our engagement with the Pak-Afghan region is an enduring one. We are not going away. We are not going anywhere,” she said. 

Earlier I had expressed my apprehension in another blog dated 31st July 2012 that United States was trying to project India as regional super power and facilitating creation of its hegemony in South East Asia and even beyond to oil rich Middle East and North Africa. She confirmed this by saying that India had and would continue to play a role in Afghanistan and rejected the suggestion that Pakistan and India needed to compete with each other for influence in Afghanistan. Ms Biswal stressed the US-India relations were so “deep and wide-ranging” that they were not linked to any particular issue. “It is a global relationship,” she added. 

At her first interaction with the South Asian media after taking charge of her office, Ms Biswal covered a wide-range of issues, from elections in Bangladesh and India to the US withdrawal from Afghanistan. With reference to Pakistan-India relationship she said, “The United States supports any improvements in the (Pakistani-Indian) overall relationship and we have seen important overtures by both countries towards dialogue.”  

But Ms Biswal made it clear that the United States would only play a supportive role in encouraging India and Pakistan to resolve their disputes and would avoid a direct involvement. “No change in the long-held US policy that Kashmir and other issues need to be resolved in bilateral talks between India and Pakistan. It is for India and Pakistan to set the pace, scope and the nature of this process.”

US foreign policy driven by warmongers

A closer watch of the ongoing crises in various countries clearly indicate that first the United States facilitates creation of rebel groups and then supply these groups and arms to fight with the regime. Two of the most recent examples are Syria and Libya. A person with average wit fails to understand the motive but the reality is that these crises are created to keep arsenal factories of United States operating at full capacity. To read the details visit http://shkazmipk.com and also share with others.

Pakistan: In the aftermath of Rawalpindi carnage

Most of the cities in Pakistan witnessed fear and commotion on Friday as Sunni and Shia groups were adamant at taking out rallies. Ironically, it looked that certain elements were keen in showing ‘street power’ rather registering their protest or condemning the perpetrators

However, there was a consensus that local administration failed in controlling the situation in Rawalpindi which led to calling army and imposing curfew.  Some observers even went to the extent of saying that whatever happened was part of the grand agenda to fan Sunni Shia clashes.

Most regrettably this policy has paid off in Iraq, Afghanistan and Syria and the same is being followed in Pakistan. After facing a humiliating defeat in Syria the perpetrators want an action replay in Pakistan. It is being alleged that the perpetrators and their funders are the same.

On Friday late evening twin blasts were caused in Karachi’s Incholi area, with majority Shia population, killing at least seven and injuring 28 people. On Saturday Pakistan’s leading English newspaper Dawn dawn.com posted a story of AFP that he Tehrik-i-Taliban Pakistan (TTP) has claimed responsibility for twin bomb attacks in Karach.

Reportedly, Shahidullah Shahid, a spokesman for umbrella group TTP told AFP that the attacks in Karachi were carried out in revenge for violence in Rawalpindi on November 15. He said the attacks were aimed at Shias in Karachi and vowed further violence.

On may recall that clashed took place between Sunni and Shia groups in the garrison-city of Rawalpindi, which neighbors the capital Islamabad on Ashura (November 15) when a procession of Shia to mark the Martyrdom of Imam Hussain, was passing by a Sunni mosque. Officials said 11 people were killed and more than 60 injured.

Geneva Talks: Is France the only spoiler?

While John Kerry blamed Iran for backing out from the negotiations, it is France which turned the table. In this endeavor it enjoyed complete support of Saudi Arabia and Israel, who are most unhappy on US decision of not to attack Syria. It is believed that if the US and Iran agree on certain points Iran may once again enter into global oil trade, which does not bode well for Saudi Arabia. Similarly, Israel will also not be able to continue its atrocities in Palestine. France has a major stake because it there is peace it will not be able to sell its arms to countries, which have been made to believe that Iran is the biggest threat for their existence. To read the details visit shkazmipk.com.

Regards

Shabbir Kazmi

shkazmipk@gmail.com

Pakistan: Conspiracy to fan Sunni-Shia clashes in Karachi

Ashura‚ the 10th of Muharram is being observed today with due solemnity and sanctity to pay homage to Hazrat Imam Hussain and his companions who laid down their lives to preserve the uprightness of Islam in Karbala.

The Federal and provincial governments have taken strict security measures to maintain law and order on the occasion. The law enforcement agencies have been put on high alert throughout the country to deal with any eventuality, cell phone service suspended in more than eighty cities and close circuit cameras have also been installed at sensitive points to keep watch on Majalis and processions.

Despite these arrangements perpetrators succeeded in creating a blast near an Imambargah situated in Karachi Shadman Town area early on Friday injuring at least one person. TV reports quoted police officials as saying that unknown persons riding on a motorcycle hurled a hand grenade from a bridge near a group of policemen deployed for security at the said Imambargah, near Nagan Chowrangi. The Majlis-i-Wahdat-i-Muslimeen (MWM) condemned the attack on the Imambargah.

It is necessary to remind the readers the statement of Karachi Police Chief Shahid Hayat given on Tuesday “Conspiracy is being hatched to fan Sunni-Shia clashes in the city”. The gunmen killed five Sunnis a day after six Shias were assassinated in the metropolis.

Responding to a question, the IGP Sindh said the police were alert to possible reaction to the recent killing of Pakistani Taliban chief Hakimullah Mehsud in a drone attack in northwestern North Waziristan agency, close to Afghan border.

Police said five, killed on Tuesday, belonged to Deobandi sect and were either members or sympathizers of banned extremist outfits. “Apparently they were targeted because of their sect,” senior police officer Muneer Shaikh told AFP.

Pakistan: Karachi under terrorist attack

Over the last few years shias have been victim of ‘targeted killing’ by some banned religious outfits, the most brutal and notorious being Lej, TTP. On Ashura special security arrangements are made for the security and safety of mourners but perpetrators outperform law enforcing agencies.  Now it is being said opening that terrorists are embedded in law enforcing agencies. The point gets some credence because nearly 70,000 people have been killed over the years but no perpetrator has been punished. Most of the accused have been acquitted due to lack of evidence. For the latest update and share my latest blog, Karachi comes under terrorist attack, once again. To read further please click shkazmipk.com
Shabbir Kazmi 
shkazmipk.com