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Economic events 1989.

January 1: The Oil and Gas Development Corporation planned to drill 165 oil wells including 100 development wells at a cost of Rs. 5,768 billion during the Seventh Five Year Plan. The production target by 1993 was set at 36.58 million barrels of oil and 268.669 mcf of gas.

January 2: Complete car assembly facilities in the Pak-Suzukimotor company's new car plant being set up in Karachi, will be operational by the end of 1990.

January 3: Federal Production State Minister, Raja Shahid Zafar, said in Karachi that the hydrocracker unit would be set up shortly so that the oil refining could be completely done in Pakistan and no crude oil will be sent to any foreign country for refining purposes, thus saving the precious foreign exchange.

January 7: The World Bank has approved loans totalling 200 million dollars for financing projects in the agriculture sector.

January 9: The proposal of the Pakistan State Oil for the southern pipeline project has been approved by the government.

January 14: With rains coming in time and in pattern and volume best suited to the requirement of rabi crops, a minimum yield of 15 million tonnes of wheat is expected which should considerably reduce our dependence on imports.

January 15: President Ghulam Ishaq Khan expressed the hope that in a matter of about 10 years, Pakistan would be able to build nuclear power plant on its own.

January 16: Federal Minister for Petroleum and Natural Resources Jehangir Badar announced discovery of oil and gas in three different fields in District Hyderabad. He said in all 3,972 barrels oil and over 13 million cubic feet gas will be produced daily.

January 17: The production of poultry meat is increasing by about 11 per cent per annum in the country and during last four years it has increased from 86,000 tonnes in 1983-84 to 134,000 tonnes in 1987-88.

January 20: Prime Minister Benazir Bhutto directed the immediate establishment of a dry port in Faisalabad and said that impediments and obstacles in the way would be removed.

January 21: U.K. based international consultants will complete their studies about 11 trillion in place gas reservoirs' this year at Pirkoh gas field.

-- The Heavy Mechanical Complex (HMC) will manufacture equipments for steam generation plants for "Bin Qasim thermal extension power plant", Unit-5.

January 23: The National Credit Consultative Council (NCCC) has increased allocation for Agricultural Development Bank of Pakistan (ADBP) from Rs. 2,890 million to Rs. 3,400 million for the current year in view of increased requirements due to floods in certain areas.

January 27: The Sindh Government with the soft loan of over Rs. 460 million from Japan, plans to construct 600 kilometers of roads in the province in the next nine to 10 months.

January 28: The World Bank has suggested that shares of Pakistan Industrial Credit and Investment Corporation (PICIC) owned by the State Life Insurance Corporation (SLIC) and the National Investment Trust (NIT) should be offered for public subscription.

January 30: The Cotton Export Corporation (CEC) has earned a record profit amounting to Rs. 722.55 million during 1987-88, it is reliably learnt.

-- The wheat target for 1988-89 has been set at 15 million tonnes, about 16 per cent higher than last year's 12.93 million tonnes.

February 2: Facilities to establish telecommunication via Arab satellite (Arabsat) were offered, for the first time to a non-Arab country -- Pakistan -- in addition to the 22 Arab users.

February 6: Prime Minister Benazir Bhutto has congratulated the nation upon entering missile age by the successful firing of ground to ground missiles.

February 7: Sweden has relaxed quota restrictions for Pakistan, specially in textile sector, with the ultimate purpose of abolishing the system altogether by 1991.

February 8: Federal Minister for Commerce, Local Government, Rural Development Syed Faisal Saleh Hayat today announced the launching of the Peoples Programme with an amount of Rs. 200 crore.

-- The Government of Canada will provide Rs. 160.5 million (Canadian dollar 10 million) grant to Pakistan under two agreements signed separately in Islamabad between the two countries.

February 11: The Pakistant Government would seek enhanced assistance from Aid to Pakistant Consortium, which is scheduled to meet in Paris from April 20-21.

February 12: Pakistan and China signed an agreement on the reciprocal encouragement and protection of investments and a memorandum of understanding between the two countries.

February 15: The Soviet's Army's nine year intervention in Afghanistan, that cost the lives of 15,000 Soviet soldiers and billions of rubles, ended when General Boris Gromov crossed back into the Soviet Union.

February 18: Pakistan and Turkey have reiterated to accelerate the Exploration of oil and gas resources. The OGDC and Turkish Petroleum have decided to collaborate by pooling their knowledge and expertise with latest technology, men, and material to meet the demand of oil industry in both the countries.

February 23: The proven reserves of coal in Pakistant today are about 460 million tonnes which amount to 205 million tonnes of oil equivalent (MTOE) As compared with this, the proven oil reserves stand only about 45 million tonnes oil equivalent while the gas reserves exist to about 485 MTOE.

-- WAPDA has commissioned eleven new grid stations of 132/66 KV capacity in different parts of the country.

-- February 24: A first project of its type in Pakistan, envisaging manufacture of video heads in technical collaboration and equity participation from reputable Japanese firm, is proposed to be established in the Industrial Area of Islamabad.

February 25: 15 per cent of all the Iqra surcharge collected annually would be allocated exclusively to special education for the disabled.

February 26: Pakistan and People's Republic of China will establish joint ventures in various fields. Accordingly small tractors (four-wheel) of 20-25 h.p. would be jointly manufactured in Pakistan.

February 28: Chairman of the Pakistan National Shipping Corporation Vice Admiral Saeed M. Khan said that, in had been decided to built 10 container vessels for PNSC at the Karachi Shipyard and Engineering Works.

March 4: The National Development Finance Corporation (NDFC) has decided to raise the minimum deposit in the "montly income deposit certificate scheme" from Rs. 10,000 to Rs. 50,000.

March 6: According to the State Bank of Pakistan, Pakistan's balance of payments recorded a current account deficit of Rs. 20,474 million during the year 1987-88 as compared with a deficit of Rs. 5,667 million in 1986-87.

March 9: Rice exports from Pakistan are forecast to fall in 1989 because of a reduced crop. Preliminary indications for this year made by the Food and Agriculture Organisation (FAO) suggest that the volume of world rice trade will rise above last year.

March 10: The stock absorbers manufacturing plant of Panjdarya Ltd., has started its production with its inauguration by K. Mizuno, executive vice-president of Showa Manufacturing Co. Ltd., Japan.

March 11: Provincial data of 16 selected industries for the first half of 1988-89 reveals increasing trend in the production of eight industrial items over the corresponding six months of 1987-88. These include sugar, cotton yarn, cotton cloth, chemical fertiliser, motor tyres and tubes, caustic soda, paper and chip board and cigarettes.

March 13: Japan has emerged as the biggest donor of foreign assistance to Pakistant with the signing of five project loans pledging assistance worth 50.297 million yens.

-- The All Pakistant second estimate for sugarcane crop for the year 1988-89 places the area and production of sugarcane crop at 820,400 hectares and 33,631,500 tonnes as compared to 841,600 hectares and 33,028,800 tonnes of last year.

March 14: The total installed capacity of cement output at the end of 1993 will grow to 11 million tonnes as against 7.7 million tonnes in the current year.

-- A 100 million dollars syndicated Morabaha financing facility for Rice Export Corporation of Pakistan, arranged by Faysal Islamic Bank of Bahrain was signed. The facility is guaranteed by the State Bank of Pakistan.

March 15: The United States Congress has approved an allocation of 265 million dollars to Pakistan for the fiscal 1989, the second year of the new six-year package.

-- PIA entered into an agreement with one of the world's leading computer manufacturers, National Cash Register Corporation of America, for jointly marketing a unique software system developed by PIA for automated departure control at the airports.

April 2: Out of total daily oil production in Pakistan, which is estimated at about 55,000 barrels, about 43,208 barrels of oil is being produced in Sindh according to a survey conducted by an economic analyst.

April 4: A Board of Investment has been set up to lay down policy guidelines to speed up industrialisation in the country.

April 5: About 4,780 million tonnes of coal reserves have been found in Lakhra (district Dadu) and Sonda (district Thatta).

April 9: A new 500 kv grid station costing Rs. 1,300 million (dm 124 million) will be set up by WAPDA in Lahore by June 1991.

April 14: The World Bank is lending Pakistan 74.4 million dollars on easy terms to restore roads and irrigation infrastructure damaged by heavy floods in 1988.

April 21: The ten-nation Aid-to-Pakistan Consortium has promised more than three billion dollars aid to Pakistan.

April 22: Actual achievements in respect of fixed investment in small-scale industry during the last five years, have ranged between 15 to 35 per cent of the targets prescribed, according to State Bank of Pakistan report.

April 24: The government has allowed the import of newsprint doing away with the system of special permits to newspapers. But a duty of Rs. 3,000 per metric ton has been imposed which is half of the duty on paper.

April 26: Ghazi Ghariala hydel power project which can add 1000 MW to the national grid is being activated with the assistance of the World Bank, the UNDP, and donor states.

April 29: The Federal Republic of Germany has agreed to provide Pakistan with 329.6 million DM as against 223 million DM, pledged in last week's Paris Consortium meeting for the execution of various projects and programmes in Pakistan.

May 6: The Asian Development Bank is to extend loans amounting to 700 to 800 million dollars to Pakistan, during 1989, for projects in communication, energy education, agriculture and social sectors.

May 13: Pakistan and India signed an agreement envisaging enhancement of capacity, entitlement of their designated carriers as well as technical matters relating to air traffic services.

May 21: The Karachi Industries will get rid of load shedding of powers in July, this year with the commissioning of KESC's 210 MW Unit No. 3 of Bin Qasim Thermal Power Station of which 95 to 98 per cent work has already been completed.

May 22: The Economic Coordination Committee (ECC) of the Cabinet, has decided to increase the export duty on cotton yarn from Rs. 2 to Rs. 3 per kg.

May 23: The National Economic Council, in its meeting formulated the annual plan envisaging GDP of 5.8 per cent in the next financial year against the revised estimate of 5.2 per cent, during the current year.

May 26: Japan, maintained its position as, the world's largest creditor nation for the fourth consecutive year, piling up an extra 51.0 billion dollars in net foreign assets in 1988.

May 29: The support price of all varieties of cotton have been increased by Rs. 15 per 40 kgs.

-- Wheat production target of 15 million tonnes has nearly been achieved, with the province of Punjab contributing a bulk of 10.3 million tonnes which is 0.6 million tonnes short of its target.

June 1: Performance of the overall economy, during 1988-89 registered a decline when the growth rate touched the figure of 5.1 per cent against the target of 6.9 per cent and the actual growth of 6.2 per cent, achieved last year.

July 24: A joint venture between Australian industrial group Pacific Dunlop and government-owned Telecom Australia has won a 30-million dollars (22.5 million US) fibre optic cable contract with Pakistan.

August 6: Siemens of Federal Republic of Germany, and Habbullah Mines of Pakistan, have struck a deal for a joint venture to set-up a 150 megawatt thermal power plant based on Lakhra coalin Sindh..

June 10: The imposition of sales tax on 44 items as announced by the Finance Minister is the "Budget 89" will not affect the exportable goods. The exporters of these goods will get refund after the shipment had taken place.

August 27: After successful fabricating boilers for 210 megawatt nits for Bin Qasim three and four, the Heavy Mechanical Complex, Taxilla is being assigned fabrication of boilers for coal-based power plants.

September 8: The Government of Pakistan is reported to be under great pressure from the International Monetary Fund (IMF), to gradually phase out its barter dealings with the Socialist countries, it was reliably learnt.

September 10: Federal Minister of Commerce, Faisal Saleh Hayat, said that 5.1 billion dollars export target of the country, for the current fiscal year envisaging 9.6 per cent growt rate, was realistic and achievable.

September 12: Exports from Pakistan during August, 1989, amounted to Rs. 6,659 million as against Rs. 5,695 million in July, 1989, showing an increase of 16.8 per cent over July.

September 13: The Government is likely to collect an estimated amount of Rs. 50 million, from the Capital Value Tax (CVT), levied on the purchase of immovable urban property and motor vehicles over 800 cc, during the current fiscal year.

September 27: The trade deficit during 1988-89, widened to Rs. 46,524 million from Rs. 32,937 million, recorded 1987-88 due to faster pace of growth in import, compare to growth in exports representing an increase of 41.3 per cent during the year.

October 1: Pakistan formally became the 49th member of the Commonwealth, rejoining the club it left on it's own about 17 years ago.

October 5: Pakistan and China would give tax concessions in financial investments to various enterprise of the two countries and further improve cooperation in their socio-economic sector through better taxation measures particularly in business profits, dividends, interest, royalties and fees for technical services.

October 9: The United States will provide 300 million dollars assistance to Pakistan, during the current financial year, excluding 80 million dollars for PL-480 programme.

October 13: A multi-million water supply scheme, envisaging Japanese loan, of Rs. 793 million, for the Federal Capital had been approved by the Government.

November 10: OPEC member countries, in 1988, increased their proven crude oil reserve by 86.56 billion barrels, boosting Opec's share of the world total to 76.9 per cent from 76 per cent in 1987. Out of world proven crude oil reserves of 991.47 billion barrels in 1988, Opec held 762.8 billion.

November 11: Pakistan's first high-powered domestic satellite earth station (Domsat), has started functioning at Balochistan coastal town of Gwadar.

November 13: The Cabinet approved setting up of a Public Monopoly Tariff Commission, in order to improve efficiency and reduce cost of public utilities, like WAPDA, gas companies, PIA, Railways, Telephone and Telegraph, Post Office, etc.

November 14: The Railway Ministry is working out an investment plan, to modernise the system with the assistance of World Bank, which has offered to provide 180 million dollars.

November 15: Pakistan and China have signed four agreements. The agreements related to avoidance of double taxation, interest-free Chinese loans of 50 million yuan (13.5 million dollars), protocol for procurement of road making machinery for Balochistan and 3.5 million yuan worth Chinese relief assistance for Afghan refugees.

-- Plans have been completed to start spudding of the first offshore exploratory well, 147 kilometers from Karachi on December 9.

November 16: China will provide a 300-megawatt nuclear reactor to Pakistan, to help overcome its energy problems.

November 18: Pakistan contracted foreign loans and credits of 2551 million dollars, with various loan giving and donor agencies during 1988-89, against 1902.1 million dollars in the previous year, registering an increase of 34.1 per cent.

December 17: The net sales of the Ministry of Production, during the preceding year (Dec. 88-Dec. 89) amounted to Rs. 42 billion as against Rs. 37 billion, during the corresponding period last year.

December 20: The General Sales Tax net, may be widened soon, by the Government, after bringing over 100 items more, under the purview of this tax.

December 23: ANZ banking group has arranged a 50 million US dollars advance, for Rice Export Corporation of Pakistan, for a period of one year.
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Author:Ansar, Nasira
Publication:Economic Review
Date:Jan 1, 1990
Words:2773
Previous Article:Labour management relations in 1990.
Next Article:Pakistan State of the Economy: a Long Run Perspective.
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