NEW DELHI: Ruling out war as an option, Indian Finance Minister Pranab Mukherjee Thursday reinforced Prime Minister Manmohan Singh’s position that there was no alternative but to keep talking to Pakistan but made it clear that there was no surrender by the government on the issue of combating cross-border terrorism.
“Neither have we succumbed to terrorism nor will we stop talking,” Mukherjee told the Lok Sabha during a debate on issues arising from the prime minister’s foreign visits, including his trip to Egypt where he met Pakistan Prime Minister Yousaf Raza Gilani.
Action on terror was independent of any composite dialogue, he asserted.
“The NDA did it. The UPA did it. This is the way the world of diplomacy moves,” Mukherjee said while reminding parliament that over the last 10 years, governments across the political spectrum in India kept talking to Pakistan despite brief disruptions after terrorist attacks.
“We can’t erase Pakistan. It’s going to exist. War is no solution,” Mukherjee said while underlining the importance of keeping talks going with Pakistan.
Mukherjee, who was foreign minister when the Mumbai attacks took place, clarified that talking did not mean the resumption of a full-fledged dialogue.
“Keeping channels open does not mean surrendering our position on terrorism,” Mukherjee stressed, adding that Pakistan must act credibly and verifiably to dismantle the terrorist infrastructure operating from it’s soil.
He also defended the inclusion of Balochistan in the July 16 India-Pakistan joint statement saying a unilateral reference does not mean giving credibility to Pakistan’s allegations of any Indian role in unrest in Pakistan’s southwest province.
“We have no role to play in Balochistan,” he said.
Thursday, July 30, 2009
Wind Power in a Pakistani Village !
KHAROCHHAN: A tiny island of fishermen is light years ahead of the rest of Pakistan, powering homes and businesses with wind turbines – protecting the environment and improving the quality of life, AFP reported.
The government may lack the cash to harness hydro, wind and solar resources on a large scale in the electricity-starved country but charities are lighting the way forward by putting wind power to work in remote villages.
‘We've been given two bulbs a house, it's a blessing for all of us,’ said 42-year-old fisherman Mohammad Arif on the subtropical island of Kharochhan, a land of creeks and mangroves in the cyclone belt of the Arabian Sea, AFP reported.
Lying 150 kilometers due south of the country’s financial capital Karachi, Kharochhan is an island of thatched homes where fishermen scrape by on 75 dollars a month and never dreamed of having electricity.
Then a local charity pitched up and installed five wind turbines. Now a fifth of homes – 100 out of around 500 – have been hooked up to the system.
‘Each of us saves up to 1,500 rupees that we would have spent on kerosene. I couldn't afford to educate my children, but now I'll put two of my four daughters in school,’ Arif said.
‘We're poor with meager resources. Our boys usually become fishermen and our girls illiterate housewives. This money could help us improve our children's future,’ he added.
The country faces a catastrophic energy crisis, able only to produce 80 percent of the electricity that it needs, suffocating industry and making life tough in extreme winter and summer weather.
The shortfall has been blamed on government incapacity, corruption, short sightedness, debts, a creaking distribution system and lack of money to invest in energy sources.
To help cut energy needs Pakistan last year introduced daylight saving time in the summer, but experts say the most sustainable long-term solution is to tap into abundant renewable resources.
Half an hour by boat from the mainland, development on Kharochhan has been hampered by isolation, said Nadeem Jamali, secretary general of a charity helping coastal villages use strong winds to generate electricity.
‘Our project is to avoid environmental degradation and help provide the population with a proactive social life,’ said Jamali, of the Pakistani charity Action for Humanitarian Development, AFP reported.
Before his organization erected turbines, villagers cut down mangroves for firewood to cook meals and used kerosene to light homes, damaging the environment and producing heavy smoke, causing allergies.
‘Wind energy should stop the use of kerosene and we advise people to use acacia wood for cooking because mangroves protect them from rampant cyclones,’ said Jamali, of the trees that are a buttress against waves during storms.
Shah Kamal, who designs wind turbines, says the high winds that batter Pakistan's 1,050-kilometer coastline are perfect for powering turbines and cutting power shortages.
The applied physics graduate said the energy crisis, which sees power cut for 10 hours a day when temperatures top 40 Celsius, forced him to design and mount a wind-turbine generator on the roof of his house in Karachi.
‘When I solved my own problems, I thought why not provide similar advantages to other people?’ he said.
‘We have given electricity to more than 100 houses in Kharochhan with five turbines. There are also four street lights,’ Kamal said.
‘I see a great future for this technology,’ he added.
It has revolutionized villagers' lives, which once ended at sunset.
‘With light available at night we can now do business for longer and our women do more embroidery work to earn for the family,’ said local fisherman Shahid Ali.
‘Stray dogs don't bark at us now because they can recognize us in the light. And most satisfying of all – our lights don't go off as routine in big cities,’ said Ali.
Pakistan's Alternative Energy Development Board says small wind turbines provide electricity to a few dozen coastal villages and that one large wind farm was established in April, AFP reported.
‘Our target is to meet at least five percent of total installed capacity through renewable energy resources by 2030,’ said AEDB chief Arif Alauddin.
The Pakistan Meteorological Department says the country has the potential to generate 50,000 megawatts – more than its total needs – through wind, mostly in southern Sindh province.
Swat, the northwest valley ripped apart by fighting with the Taliban, also enjoys favorable wind conditions where authorities intend to invite investors once militancy is suppressed, said an official in Islamabad.
The government may lack the cash to harness hydro, wind and solar resources on a large scale in the electricity-starved country but charities are lighting the way forward by putting wind power to work in remote villages.
‘We've been given two bulbs a house, it's a blessing for all of us,’ said 42-year-old fisherman Mohammad Arif on the subtropical island of Kharochhan, a land of creeks and mangroves in the cyclone belt of the Arabian Sea, AFP reported.
Lying 150 kilometers due south of the country’s financial capital Karachi, Kharochhan is an island of thatched homes where fishermen scrape by on 75 dollars a month and never dreamed of having electricity.
Then a local charity pitched up and installed five wind turbines. Now a fifth of homes – 100 out of around 500 – have been hooked up to the system.
‘Each of us saves up to 1,500 rupees that we would have spent on kerosene. I couldn't afford to educate my children, but now I'll put two of my four daughters in school,’ Arif said.
‘We're poor with meager resources. Our boys usually become fishermen and our girls illiterate housewives. This money could help us improve our children's future,’ he added.
The country faces a catastrophic energy crisis, able only to produce 80 percent of the electricity that it needs, suffocating industry and making life tough in extreme winter and summer weather.
The shortfall has been blamed on government incapacity, corruption, short sightedness, debts, a creaking distribution system and lack of money to invest in energy sources.
To help cut energy needs Pakistan last year introduced daylight saving time in the summer, but experts say the most sustainable long-term solution is to tap into abundant renewable resources.
Half an hour by boat from the mainland, development on Kharochhan has been hampered by isolation, said Nadeem Jamali, secretary general of a charity helping coastal villages use strong winds to generate electricity.
‘Our project is to avoid environmental degradation and help provide the population with a proactive social life,’ said Jamali, of the Pakistani charity Action for Humanitarian Development, AFP reported.
Before his organization erected turbines, villagers cut down mangroves for firewood to cook meals and used kerosene to light homes, damaging the environment and producing heavy smoke, causing allergies.
‘Wind energy should stop the use of kerosene and we advise people to use acacia wood for cooking because mangroves protect them from rampant cyclones,’ said Jamali, of the trees that are a buttress against waves during storms.
Shah Kamal, who designs wind turbines, says the high winds that batter Pakistan's 1,050-kilometer coastline are perfect for powering turbines and cutting power shortages.
The applied physics graduate said the energy crisis, which sees power cut for 10 hours a day when temperatures top 40 Celsius, forced him to design and mount a wind-turbine generator on the roof of his house in Karachi.
‘When I solved my own problems, I thought why not provide similar advantages to other people?’ he said.
‘We have given electricity to more than 100 houses in Kharochhan with five turbines. There are also four street lights,’ Kamal said.
‘I see a great future for this technology,’ he added.
It has revolutionized villagers' lives, which once ended at sunset.
‘With light available at night we can now do business for longer and our women do more embroidery work to earn for the family,’ said local fisherman Shahid Ali.
‘Stray dogs don't bark at us now because they can recognize us in the light. And most satisfying of all – our lights don't go off as routine in big cities,’ said Ali.
Pakistan's Alternative Energy Development Board says small wind turbines provide electricity to a few dozen coastal villages and that one large wind farm was established in April, AFP reported.
‘Our target is to meet at least five percent of total installed capacity through renewable energy resources by 2030,’ said AEDB chief Arif Alauddin.
The Pakistan Meteorological Department says the country has the potential to generate 50,000 megawatts – more than its total needs – through wind, mostly in southern Sindh province.
Swat, the northwest valley ripped apart by fighting with the Taliban, also enjoys favorable wind conditions where authorities intend to invite investors once militancy is suppressed, said an official in Islamabad.
Tuesday, July 21, 2009
Prime Ministers Son get a Traffic Ticket and pays it too !
ISLAMABAD: City traffic police late on Sunday caught Prime Minister Yousuf Raza Gilani’s son for a violation and served him a ticket, which he received civilly and also paid the fine personally.
Sources told Dawn on Monday that Assistant Sub-Inspector (ASI) Liaquat of the Islamabad Traffic Police (ITP), who was deployed at Radio Pakistan, spotted a car (LEC-411) being driven with high beam.
The ASI signaled the vehicle to stop and informed the driver that he had committed a violation by using high beam. He asked for documents to issue a fine ticket.
The violator introduced him as Moosa Gilani, a son of the premier, but the ITP official again sought the documents.
Mr Gilani handed over the car’s registration book to the police official, who issued him a ticket carrying a fine of Rs200.
Mr Gilani himself visited a National Bank’s branch on Monday and paid the fine to get the vehicle’s document back. He also visited the ITP Headquarters, met senior officers there and commended the ASI’s ‘honesty and zero tolerance.’
Sources told Dawn on Monday that Assistant Sub-Inspector (ASI) Liaquat of the Islamabad Traffic Police (ITP), who was deployed at Radio Pakistan, spotted a car (LEC-411) being driven with high beam.
The ASI signaled the vehicle to stop and informed the driver that he had committed a violation by using high beam. He asked for documents to issue a fine ticket.
The violator introduced him as Moosa Gilani, a son of the premier, but the ITP official again sought the documents.
Mr Gilani handed over the car’s registration book to the police official, who issued him a ticket carrying a fine of Rs200.
Mr Gilani himself visited a National Bank’s branch on Monday and paid the fine to get the vehicle’s document back. He also visited the ITP Headquarters, met senior officers there and commended the ASI’s ‘honesty and zero tolerance.’
Friday, July 17, 2009
Reliance, DreamWorks ink multi-million dollar film deal
MUMBAI: India's Reliance Big Entertainment and Hollywood's Steven Spielberg have signed an 825-million-dollar deal to make half a dozen films every year, the companies said in a joint statement.
The agreement with Spielberg's DreamWorks Studios was signed late Wednesday in New York in the presence of the US director and Anil Ambani, chairman of the giant Reliance Anil Dhirubhai Ambani Group.
Ambani said in a statement that he was 'delighted' with the partnership forged with Spielberg and his DreamWorks associate Stacey Snider, calling them 'uniquely talented individuals'.
Spielberg added: 'This venture with Reliance opens a new door to our future. Their visionary step has given us a new set of dreams to work toward.'
Reliance will put in 325 million dollars while the Walt Disney Company, which will handle worldwide distribution, except in India, will invest 125 million dollars, a Reliance Big Entertainment spokeswoman in Mumbai told AFP.
The balance of 375 million dollars will come from banks and financial institutions, she added. Reliance initially signed a tie-up with DreamWorks last year and has since been finalising the small print of the deal. The first films are expected to be released from 2010.
The Indian company has previously signed deals to expand its Hollywood reach with a number of US production companies owned by A-list actors including Nicolas Cage, George Clooney, Tom Hanks, Brad Pitt and Julia Roberts.
In reaction to the deal, shares in the Reliance-owned Adlabs Films surged 19.5 percent to 354 rupees in early trade on the Bombay Stock Exchange Thursday, before retreating to just under 335 rupees.
Reliance ADA Group's media and entertainment business owns 428 cinema screens in India, the United States, Malaysia and Mauritius. -AFP
Its interests stretch from FM radio, music, gaming, animation and the Internet to mobile portals, direct-to-home television, Internet TV and mobile TV. -AFP
The agreement with Spielberg's DreamWorks Studios was signed late Wednesday in New York in the presence of the US director and Anil Ambani, chairman of the giant Reliance Anil Dhirubhai Ambani Group.
Ambani said in a statement that he was 'delighted' with the partnership forged with Spielberg and his DreamWorks associate Stacey Snider, calling them 'uniquely talented individuals'.
Spielberg added: 'This venture with Reliance opens a new door to our future. Their visionary step has given us a new set of dreams to work toward.'
Reliance will put in 325 million dollars while the Walt Disney Company, which will handle worldwide distribution, except in India, will invest 125 million dollars, a Reliance Big Entertainment spokeswoman in Mumbai told AFP.
The balance of 375 million dollars will come from banks and financial institutions, she added. Reliance initially signed a tie-up with DreamWorks last year and has since been finalising the small print of the deal. The first films are expected to be released from 2010.
The Indian company has previously signed deals to expand its Hollywood reach with a number of US production companies owned by A-list actors including Nicolas Cage, George Clooney, Tom Hanks, Brad Pitt and Julia Roberts.
In reaction to the deal, shares in the Reliance-owned Adlabs Films surged 19.5 percent to 354 rupees in early trade on the Bombay Stock Exchange Thursday, before retreating to just under 335 rupees.
Reliance ADA Group's media and entertainment business owns 428 cinema screens in India, the United States, Malaysia and Mauritius. -AFP
Its interests stretch from FM radio, music, gaming, animation and the Internet to mobile portals, direct-to-home television, Internet TV and mobile TV. -AFP
Tuesday, June 23, 2009
Obama Into Urdu Poetry !
If you want to make high-brow small talk at one of President Barack Obama’s cocktail parties, don’t bother brushing up your Shakespeare. Try reading Urdu poetry.
As POLITICO’s Ben Smith points out in his blog, Obama showed off his intellectual flair by evoking a standard of Pakistani culture in a recent interview with Dawn, a popular English-language newspaper in Pakistan.
“‘I would love to visit. As you know, I had Pakistani roommates in college who were very close friends of mine. I went to visit them when I was still in college; was in Karachi and went to Hyderabad. Their mothers taught me to cook,’ said Mr Obama.
‘What can you cook?’
‘Oh, keema ... daal ... You name it, I can cook it. And so I have a great affinity for Pakistani culture and the great Urdu poets.’
‘You read Urdu poetry?’
‘Absolutely. So my hope is that I’m going to have an opportunity at some point to visit Pakistan,’ said Mr Obama.”
It may sound somewhat esoteric, but this ancient form of mystical and oft-times philosophical love poetry has been popular in Pakistan and parts of India for centuries. And there are a few things to know before you try to impress the poetry-lover-in-chief.
One of the most popular poets was Mirza Ghalib, whose work dates from the mid-19th century. The still-popular art form usually features the story of a lover scorned by his beloved. And there is almost never a happy ending. “Often the beloved is often a total witch,” says Gwen Kirk, a University of Texas master’s candidate in the subject of Urdu poetry. “She breaks the lover’s heart all the time; she neglects him. It’s all about the process of trying to get closer to the beloved, and it’s got a lot of Sufi and mystical elements as well.”
The ghazal is the most common form of Urdu poetry, and, like sonnets, it follows strict rules of form: four to 12 couplets with a meter and rhyme scheme. But the similarities end there. Couplets in an Urdu poem can sometimes be completely unrelated to each other, each delving into themes that range from unrequited love to the meaning of life.
Fear not if your Urdu — one of two official languages in Pakistan — is a little rusty. Obama likely reads one of the many translated compilations of the texts, according to Kirk. Or if he is a truly savvy Urdu poetry enthusiast, he may choose to listen to the poems recited or sung, as it is commonly performed in the region.
Obama’s admission that he shares an affinity with the “great Urdu poets” may get him further in the region than most think. The language and poetry are commonly associated with Pakistan’s and India’s Muslim population, according to Kirk, and it remains intensely popular in the region — poetry recitals sometimes attract gatherings of thousands of people.
“It does show a willingness to understand that part of the world,” says Kirk.
And in general, it gives Obama further credibility as a supporter of the arts. Not only is he one of three American presidents to have poetry read at their Inaugurations, but he reads the stuff, too!
Want to dig into Urdu poetry? Here’s an example of what awaits you:
To hell with all hindering walls and doors!
Love’s eye sees as feather and wing, walls and doors.
My flooded eyes blur the house
Doors and walls becoming walls and doors.
There is no shelter: my love is on her way,
They’ve gone ahead in greeting, walls and doors.
The wine of your splendor floods
Your street, intoxicating walls and doors.
http://www.politico.com/news/stories/0609/24055.html#ixzz0JGyB8Rhh&D
As POLITICO’s Ben Smith points out in his blog, Obama showed off his intellectual flair by evoking a standard of Pakistani culture in a recent interview with Dawn, a popular English-language newspaper in Pakistan.
“‘I would love to visit. As you know, I had Pakistani roommates in college who were very close friends of mine. I went to visit them when I was still in college; was in Karachi and went to Hyderabad. Their mothers taught me to cook,’ said Mr Obama.
‘What can you cook?’
‘Oh, keema ... daal ... You name it, I can cook it. And so I have a great affinity for Pakistani culture and the great Urdu poets.’
‘You read Urdu poetry?’
‘Absolutely. So my hope is that I’m going to have an opportunity at some point to visit Pakistan,’ said Mr Obama.”
It may sound somewhat esoteric, but this ancient form of mystical and oft-times philosophical love poetry has been popular in Pakistan and parts of India for centuries. And there are a few things to know before you try to impress the poetry-lover-in-chief.
One of the most popular poets was Mirza Ghalib, whose work dates from the mid-19th century. The still-popular art form usually features the story of a lover scorned by his beloved. And there is almost never a happy ending. “Often the beloved is often a total witch,” says Gwen Kirk, a University of Texas master’s candidate in the subject of Urdu poetry. “She breaks the lover’s heart all the time; she neglects him. It’s all about the process of trying to get closer to the beloved, and it’s got a lot of Sufi and mystical elements as well.”
The ghazal is the most common form of Urdu poetry, and, like sonnets, it follows strict rules of form: four to 12 couplets with a meter and rhyme scheme. But the similarities end there. Couplets in an Urdu poem can sometimes be completely unrelated to each other, each delving into themes that range from unrequited love to the meaning of life.
Fear not if your Urdu — one of two official languages in Pakistan — is a little rusty. Obama likely reads one of the many translated compilations of the texts, according to Kirk. Or if he is a truly savvy Urdu poetry enthusiast, he may choose to listen to the poems recited or sung, as it is commonly performed in the region.
Obama’s admission that he shares an affinity with the “great Urdu poets” may get him further in the region than most think. The language and poetry are commonly associated with Pakistan’s and India’s Muslim population, according to Kirk, and it remains intensely popular in the region — poetry recitals sometimes attract gatherings of thousands of people.
“It does show a willingness to understand that part of the world,” says Kirk.
And in general, it gives Obama further credibility as a supporter of the arts. Not only is he one of three American presidents to have poetry read at their Inaugurations, but he reads the stuff, too!
Want to dig into Urdu poetry? Here’s an example of what awaits you:
To hell with all hindering walls and doors!
Love’s eye sees as feather and wing, walls and doors.
My flooded eyes blur the house
Doors and walls becoming walls and doors.
There is no shelter: my love is on her way,
They’ve gone ahead in greeting, walls and doors.
The wine of your splendor floods
Your street, intoxicating walls and doors.
http://www.politico.com/news/stories/0609/24055.html#ixzz0JGyB8Rhh&D
Tuesday, June 16, 2009
Focus on India : Anarchy in West Bengal as Maoists capture Lalgarh
-Please click on the map to get a larger view-
Maoists take control Of the West Lalgarh block of the Midnapore District.
Usually brushed aside as a 'non issue' the news of the ever growing Maoists insurgency finally make to the Indian Headlines. The situation is similar to what is happening in Pakistan. Maoists are in a Taliban type advance in West Bengal is about to cause an uproar in India. The Maoists already control 200 of the 602 districts of India and will be a major headache to the New Congress government.
There is anarchy in West Bengal, as less than 140 miles away from the Kolkata, the Maoists have virtually taken over the Lalgarh block in West Midnapore district.
Their targets are the police and Communist Party Marxists (CPM) supporters, both of whom have fled the area. And they have declared that their main target is Chief Minister Buddhadeb Bhattacharya.
The Maoists and their supporters are now ransacking every symbol of political and administrative authority in Lalgarh.
The mood in Lalgarh was celebratory, almost as if a Puja was being held. The drums were beating a slow rhythm.
And to the beat, as some danced and hundreds of others looked on, a demolition squad smashed the home of Anuj Pandey, CPM zonal secretary of Dharampur.
All this was done under the leadership of a man named Bikash who stood there with an AK 47 slung on his shoulder. Bikash is a member of the Maoist People's Liberation Guerilla Army.
"The ground here is already ready and waiting for us. A child is about to be born and we are playing the role of the nurse who will deliver it," said Bikash.
Bikash is one of 400 Maoists who apparently entered Lalgarh on June 6 for the current operation, according to police sources. Of the 400, at least 100 are armed with automatic weapons. This very group was responsible for the landmine blast on November 2 that narrowly missed the Chief Minister's convoy.
"On November 2, our plan was to execute Buddhadeb Babu. If West Bengal wants Buddhadeb hanged, who will hang him. It will be us of the People's Liberation Guerrilla Army," said Bikash.
There were more demolitions. The CPM's Dharampur local committee office was also demolished by the squad, bringing down the building brick by brick and setting it on fire.
Just a few metres away from the party office that is being demolished, there was a grisly sight. The body of Shalku Soren was lying there since Sunday. Shalku Soren was apparently a CPM worker. He was killed in a clash with Maoists.
CPM fellowmen brought him here but the situation became so tense after his body was brought here on Sunday, that they have just left the body here and run away.
In the middle of the anarchy, there was no sign of the police as they have been withdrawn by the government. The CRPF was asked to go in but refused unless given permission to open fire if necessary. That permission has apparently not been given yet but may come soon.
Thursday, June 11, 2009
Post Musharraf Pakistan External debt Increases by $12.9 billion !
Pakistan’s external debt and liabilities surge to $50.9 billion.from $38 billion.
Islamabad, 03 April, (Asiantribune.com): Pakistan’s external debt and liabilities (EDL) surged to $50.9 billion in the first six months of current fiscal year (July-December) from $46.3 billion in end-June 2008, reveals “Review of Economic Situation”, released by the Finance Ministry.
The EDL has gone up to 31.2 percent of projected Gross Domestic Products (GDP) of current fiscal year that was 27.6 percent by end-June 2008.
According to the review, foreign investment saw a decline of 34.2 percent in first eight months (July-February) from $2.873 billion to $1.89 billion.
A negative growth of 5.4 percent was recorded in the Large Scale Manufacturing (LSM) during the period under review against a positive growth of 5.2 percent for the same period of last year.
The LSM is victims of energy shortage along with rising cost of doing business and deteriorating law and order situation in the country. The review said that LSM growth was hit hard by sharp reduction in demand from both domestic and external sectors.
The further demand compression in the export sector is estimated at 5 percent. The inflation surged to 23.5 percent with food inflation touching as high as 28.9 percent during the period. The non-food inflation was recorded 19.3 percent and core inflation 17.8 percent.
An increase of 4.3 and 0.5 percent was witnessed both in exports and imports respectively. The exports went up from $12.482 billion a year ago to $13.015 billion while imports increased to $21.878 billion from $21.776 billion during the said period. Trade and current accounts deficits recorded a marginal decline. The current account deficit declined to $7.5 billion from $8.6 billion of July-February last year.
The review said that Pakistan witnessed major disruption in its normal economic activities as the fallout of the war on terror spread into settled areas of Pakistan. The outlook for economic growth more pessimistic, imports demand shriveled, tax collection declined and inflow of foreign investment and privatization dampened.
Pakistan economy still faces pressure from higher inflation, driven by spike in food prices, the acute power shortage, bewildering stock market, a perceptible slowdown in the manufacturing and services sectors; lower than anticipated inflows and growing financing requirements.
Islamabad, 03 April, (Asiantribune.com): Pakistan’s external debt and liabilities (EDL) surged to $50.9 billion in the first six months of current fiscal year (July-December) from $46.3 billion in end-June 2008, reveals “Review of Economic Situation”, released by the Finance Ministry.
The EDL has gone up to 31.2 percent of projected Gross Domestic Products (GDP) of current fiscal year that was 27.6 percent by end-June 2008.
According to the review, foreign investment saw a decline of 34.2 percent in first eight months (July-February) from $2.873 billion to $1.89 billion.
A negative growth of 5.4 percent was recorded in the Large Scale Manufacturing (LSM) during the period under review against a positive growth of 5.2 percent for the same period of last year.
The LSM is victims of energy shortage along with rising cost of doing business and deteriorating law and order situation in the country. The review said that LSM growth was hit hard by sharp reduction in demand from both domestic and external sectors.
The further demand compression in the export sector is estimated at 5 percent. The inflation surged to 23.5 percent with food inflation touching as high as 28.9 percent during the period. The non-food inflation was recorded 19.3 percent and core inflation 17.8 percent.
An increase of 4.3 and 0.5 percent was witnessed both in exports and imports respectively. The exports went up from $12.482 billion a year ago to $13.015 billion while imports increased to $21.878 billion from $21.776 billion during the said period. Trade and current accounts deficits recorded a marginal decline. The current account deficit declined to $7.5 billion from $8.6 billion of July-February last year.
The review said that Pakistan witnessed major disruption in its normal economic activities as the fallout of the war on terror spread into settled areas of Pakistan. The outlook for economic growth more pessimistic, imports demand shriveled, tax collection declined and inflow of foreign investment and privatization dampened.
Pakistan economy still faces pressure from higher inflation, driven by spike in food prices, the acute power shortage, bewildering stock market, a perceptible slowdown in the manufacturing and services sectors; lower than anticipated inflows and growing financing requirements.
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