Thursday, 15 November, 2012 ISLAMABAD ONLINE The growing incidence of natural disas- ters in Asia and the Pacific—where four of five cities globally classified as at extreme risk are located—threatens to undermine seriously rapid economic progress, call- ing for a much stronger focus among gov- ernments on disaster prevention. This is revealed in a new study “Inde- pendent Evaluation at the Asian Develop- ment Bank. “We have thought for too long that natural disasters come and go, that they are just an interruption to development, and that they can be dealt with after they strike,” says the Director General of Inde- pendent Evaluation, Vinod Thomas. “However, there is growing international recognition that the incidence and impact of natural disasters are increasing be- cause of persistent poverty, population growth, and climate change.” In its review of ADB’s disaster-related projects and programs, the study notes that disaster prevention accounted for one-third of investment, compared with two-thirds spent on disaster recovery. Yet, by some measures, one dollar in- vested today in reducing disaster risk saves at least four dollars in future relief and rehabilitation costs. The independent evaluation study finds that ADB’s disaster-recovery proj- ects have been much more successful than ADB-supported projects overall. But many of them had the limited objective of restoring particular types of infrastruc- ture, rather than rehabilitating liveli- hoods, or increasing disaster resilience. So far, very few countries have focused on the disaster risks in their economic devel- opment plans. Member country govern- ments and ADB must do more to high- light the need for investment in disaster prevention, not just in infrastructure, but also in relation to social development. During 1995–2011, ADB provided funding of $10.37 billion for 264 natural disaster interventions, including 104 loans for $8.55 billion. A special review of ADB’s disaster re- sponse programs in Bangladesh, Indone- sia, and Pakistan finds several areas where ADB and the rest of the develop- ment community could improve both dis- aster response and preparation. In Bangladesh, for example, ADB has been efficient at renovating damaged roads and bridges. But it can support the proactive and successful disaster man- agement programs the government has implemented. These programs have dra- matically lowered deaths in this disaster- prone delta-region caused by regular, powerful cyclones. In a storm in 1997, for example, 111 were killed in contrast with 300,000 people in a similar storm in 1970. Another lesson learned in the earth- quake-tsunami response is the hugely complex needs such disasters create. “You cannot simply rehabilitate roads and bridges and then build temporary shelter. Often, poverty, gender, ethnic is- sues, property rights and other problems compound the difficulties and require much greater attention and capacity for response from the development commu- nity,” says Tomoo Ueda, Principal Evalu- ation Specialist and the main author. In Pakistan, where the country’s de- fense forces have gained respect for their disaster response, there is significant need for greater support for civil disaster- management institutions, such as the Na- tional Disaster Management Authority. “Throughout the region, we must rec- ognize that investments in disaster risk management are an essential means to sustaining growth and poverty reduc- tion,” says Thomas. ADB touts disaster prevention as key to fiscal progress Says investments in disaster risk management essential to sustaining growth and reducing poverty KARACHI ISMAIL DILAWAR T RADE relations between Russia and Pakistan may face a set back as Moscow is feeling the heat of the long absent direct sea, air and banking links with Islamabad, something Russians believe are hindering mutual trade. Russia sees “good prospects” for the initiative as the traders and industrialists in Pakistan urge the need for a Preferential Trade Agreement (PTA) between the two countries to promote bilateral trade ties. “(The) unavailability of direct ship- ping-lines, airlines and banking channel are major obstacles impeding bilateral trade,” said Andrey V. Demidov, Russian Consul General during his visit to the Karachi Chamber of Commerce and Indus- try (KCCI) on Wednesday. At the Chamber, Demidov met KCCI President Muhammad Haroon Agar, Sen- ior Vice President KCCI Shamim Firpo, Vice President Nasir Mehmood, Former President KCCI Majyd Aziz and members of the Chamber’s managing committee. The Russian consul general said good prospects for Pak-Russia PTA existed. “Russian Mission can prepare feasibility study on PTA as deliberations are required on certain legalities,” he added. Demidov viewed that to execute transit trade from Gawader Port, adequate infra- structure, railways, highways and bridges were essential. He recalled that in early ‘90s PIA oper- ated to Moscow and the restoration of such direct air-connectivity was important. “In past, PIA also used to stopover to Moscow while going to UK, while Russian Airline may stopover Islamabad or Karachi while going to UAE which can provide opportu- nity to visitors of both countries for inter- action,” observed the Russian consul. Citing Pakistan Steel Mills (PSM) as a good example of past cooperation between the two countries, he said similar coopera- tion could be extended in many areas, par- ticularly in energy as Russia was number one in the energy sector. About the postponed visit of President Vladimir Putin to Pakistan, Demidov said upon his visit various MoUs and coopera- tion documents would be signed between the two countries. Seeing a huge demand for Pakistani textiles and leather garments in Russia, he said Pakistan could also export potato, rice, vegetables and fruits to his country. “Russia is manufacturing helicopters and commercial jets which can be provided to Pakistan. Pakistani natural pharmaceu- tical products have immense demand in Russia,” he said. Demidov said multilateral cooperation in several areas, between Pakistan, Russia andCentral Asia Republics, was also work- able. Bilateral cooperation in education was continued and Pakistani students could also avail Russian scholarships pro- grammes, said he. During talks with Demi- dov, KCCI President Muhammad Haroon Agar urged Islamabad and Moscowto ex- pedite their arrangements leading to the signing of PTA. Agar noted the dire need of Pak-Russ- ian inter-governmental arrangements to develop direct shipping and air links as well as establish banking channels to multiply bilateral trade. He said during the last 64 years Pak- istan’s economic relations had largely been American and west oriented with aid being its main focus instead of easing market ac- cess, transfer of technology and invest- ment. Recalling Pak-Russian cooperation in the past, the KCCI president emphasized that the two countries should replicate their past cooperation on the lines of PSM in areas like heavy machinery, engineering, automobiles, revamping railways, energy from coal, corporate farming, mining, health, education and others. Agar said with the multilateral cooper- ation of Central Asian Republics, Russian trade could be facilitated from Pakistani ports to other countries. On the occasion, Former KCCI President Majyd Aziz hoped that Putin’s visit to Pakistan would open new chapters of bilateral relations. Aziz said to cater national transporta- tion requirement, particularly for cargo movement, Pakistan should also benefit from Russian automobiles particularly, trucks and heavy vehicles used in logistics. A paradigm shift is required from trade of commodities to machinery and equip- ment, he said adding that Russian in- vestors could invest in Special Economic Zones and construct their own enclaves as President of Pakistan had signed the Spe- cial Economic Zones Bill. From Russia, with suggestions g Russia claims absence of direct links impede trade with Pakistan g Sees ‘good prospects’ for a PTA with Pakistan g Demidov says Russian mission can prepare feasibility study ‘LNG import deal unworkable’ ISLAMABAD ONLINE Pakistan Economy Watch (PEW) on Wednesday said that recent deal to im- port Liquefied Natural Gas (LNG) from Qatar is unfeasible. The import agree- ment signed recently with Qatar is not practical as Pakistan lacks infrastructure to import LNG, it said. Government has been trying to import LNG since years during which billions were spent on studies, hiring of experts, foreign tours and road shows disregard- ing the fact that Pakistani ports cannot host any LNG vessel, said Dr. Murtaza Mughal, President PEW. Depth of water at Port Qasim and Kemari is 39 feet while the average depth of a loaded LNG carrier in the water is 45 to 48 feet. The lightest LNG ship scarcely available is that of fifty thousand tones with 42 feet draught that cannot serve the pur- pose. Dr. Murtaza Mughal said that be- fore planning to import LNG, government should have initiated dredg- ing (excavation activity to enable water- ways navigable) which will cost 40 million dollar and take two years mini- mum. Moreover, there is no degasifica- tion facility available in Pakistan which will take 24-30 months to be in place if work on it is initiated today, said Dr. Murtaza Mughal. He added that country will also need a 50 km pipeline to con- nect degasification facility with SSGC main pipeline which will also require two years’ time and 30 million dollar in costs. NBP to put Railways on track Agrees to provide Rs 6.1bn loan to Pakistan Railways LAHORE: National Bank of Pakistan (NBP) will provide cash-strapped Pak- istan Railways a Rs6.10 billion-rupee loan to revamp its depleted fleet, media reports said on Wednesday. According to the sources, an agreement to this effect has been reached between the National Bank and PRACS – a sub- sidiary of Pakistan Railways. Under the agreement, the NBP will provide the funds in one-go but the loan amount will be payable in the next five years carrying a mark-up of 10.45 percent per annum. During the first two years, Pakistan Rail- ways will only pay the mark-up after every six months whereas in the next three years Railways will also be liable to payback principle amount along with the mark-up. The loan will be used for repair and main- tenance of Railways engines. ONLINE ECC may allow additional export of 0.2 mt sugar ISLAMABAD ONLINE The Economic Coordination Committee (ECC) of the Cabinet scheduled to meet on November 20, is expected to allow additional export of 0.2 million tons sugar. Last month, the apex economic de- cisions making body had also allowed 0.2 million tons sugar export. According to Pakistan Sugar Mills Association (PSMA), the permission for further export of 0.2 million tons sugar will go a long way to improve the finan- cial positions of the mills and payments to sugarcane cultivators. According to the agenda items avail- able with Online News agency, the ECC will consider the summary of Commerce Ministry which has sought the export of 0.2 million tons sugar in addition to 0.2 million tons allowed earlier. The committee will also take up the ministry of Industry’s summary in which they (ministry) sought the waver of sales tax at import stage on the im- port of Swede bus Pakistan. Following a resolution passed by the National Assembly, the Economic Coordination Committee of the cabinet is also expected to give a go-ahead to switch to a monthly oil pricing mecha- nism as the Ministry of Petroleum and Natural Resources will table the sum- mary before the committee for its ap- proval. The controversial weekly price re- view mechanism was also suspended by the government after giving an under- taking in the Supreme Court last month. The government has also been seen to repeatedly ignore the continuous rec- ommendations of the National Assem- bly Standing Committee on Petroleum and Natural Resources and the Oil and Gas Regulatory Authority (OGRA) to switch to the old oil pricing mechanism. The Ministry of Finance and OGRA had already opposed to the price review on a weekly basis when the summary was first tabled before the ECC for ap- proval, but their concerns were not ad- dressed. OGRA was of the view that the current price review was being exploited by refineries, oil marketing companies and hoarders. Flag protection of National shipping line, report on implementation of cabi- net decisions and the review of economic indicators were also included in the agenda items of the upcoming meeting of Economic Coordination Committee. PRO 15-11-2012_Layout 1 11/15/2012 12:45 AM Page 1