Tangy boost: Citrus production improves as new investors jump in

Major producer: 70% is the contribution made by Sargodha alone in the total citrus production.

SARGODHA: 

The current season seems to be one of the best for citrus cultivation as advanced farming techniques have been introduced and new investors have jumped in, giving a significant boost to production.

Pakistan is one of the top 10 citrus producing countries in the world and it is one of the major fruits exported from the country. Punjab dominates the national horizon, contributing 90% to the total production.

In the province, Sargodha alone produces 70% of the total output. Citrus produced in the city is considered the best variety in the world and has great demand in international markets.

Sargodha is the largest producer of Citrus Reticula called kinnow, a unique variety produced in this part of the world.

Though the output has improved this year, it comes after a decline over the past couple of years.

“Citrus production had been decreasing for the last couple of years due to pest and disease attacks,” said Amjad Ali, an expert in Sargodha, while talking to The Express Tribune. “Farmers could not be able to control diseases, which caused them heavy losses.”

The production fell in the absence of state-of-the-art technology, application of fake pesticides and black-marketing of fertilisers.

However, unlike the past, this year the citrus crop has remained good due to availability of pesticides and fertilisers at the right time and entry of many new investors. The new players have taken citrus farms on contract and are capable of buying good-quality pesticides and ensuring timely purchase of fertilisers.

“We have the best variety of citrus in the world. This year, the production and quality of the crop are good and it will prove to be the best for exporters,” said JM Exports Chief Executive Officer Rao Usman Ali.

Major export markets of Pakistan are the United Arab Emirates (UAE), other Middle Eastern countries, Sri Lanka, Malaysia and Russia.

Ali pointed out that the farmers had not the required resources to ensure purchase of fertilisers at the right time, which compounded quality problems and prolonged disease attacks. Now, he added, citrus processing plants were meeting international market standards and would be able to step up export of the fruit.

Next fiscal year: Budget deficit target likely to be tamped down

Income-expense gap: 5.8% is the budget deficit target for the current fiscal year. DESIGN-FAIZAN DAWOOD/FILE

ISLAMABAD: 

The federal government is going to set a lower budget deficit target at 4.9% of the total size of the economy or Rs1.5 trillion for the next financial year after indications that it may achieve this year’s goal on the back of squeezing development spending.

The budget deficit – gap between national income and expenditure – is being worked out under a broader budgetary framework for the next fiscal year 2014-15, according to sources in the Ministry of Finance.

In absolute terms, the government wants to introduce Rs260 billion worth of fiscal consolidation and a significant chunk would come through withdrawal of sales tax exemptions. Due to rigidity of expenditures, there will not be enough space to cut expenses but the subsidies.

For the current fiscal year, parliament had approved budget deficit of 6.3% of GDP or Rs1.65 trillion. However, under the three-year Extended Fund Facility worth $6.7 billion, the International Monetary Fund (IMF) introduced a tight fiscal policy and slashed the deficit target to 5.8%, half a percentage point or Rs130 billion less than that approved by parliament.

The IMF has asked Pakistan to lower its deficit to 3.5% to 4% during the loan period. The Ministry of Finance is contemplating reducing it by 0.9% from the current year’s level to 4.9% for the next fiscal year, beginning July, according to ministry sources.

In the last year of the IMF programme (2015-16), the ministry intends to further reduce the gap by 0.9% to 4%.

Sources said the government had not yet discussed next year’s budget with the IMF. According to a tentative plan, they will start discussions by the end of April.

In the first half of the current fiscal year, the government managed to restrict the budget deficit to 2.2%, mainly because of a big cut in development spending. However, it was facing problems in achieving the Rs2.475 trillion tax target, which could undermine efforts to cut the deficit to 5.8%.

Similarly, for the next fiscal year, the government has proposed Rs506 billion for the federal development budget, 6.3% less than Rs540 billion for the current year.

However, according to independent economists, over-emphasis on fiscal consolidation is likely to hurt economic growth in the long term. They argue that austerity should be eschewed for the sake of growth, but their advice is contrary to the IMF prescription.

In order to review budgetary targets for the next fiscal year, a meeting was also held in the Ministry of Finance on Saturday. Finance Minister Ishaq Dar chaired the meeting and reviewed implementation of the Medium Term Budgetary Framework (MTBF), said an official statement.

The three-year Medium Term Macro-economic Framework 2013-16 has been strictly followed and benchmark commitments are being focused, according to the statement. Detailed discussions focused on result-based monitoring and a draft Public Finance Act.

“We have to follow performance-based budgeting and closely monitor growth and Public Sector Development Programme,” Dar said, adding planning, budgeting and accountability should go hand in hand.

The minister emphasised that transparency should reflect at every step of the economic reforms introduced by the government. “We must ensure that wasteful expenditures are cut and allocations for social protection for the poor and needy are disbursed.”

He said the fiscal deficit target of 4% in three years was sacrosanct and for this purpose it was essential to keep the ministries within fiscal limits.

Petition against interest payments poses risk: Report

Govt plans to float $500m Eurobond in global market this month. CREATIVE COMMONS

ISLAMABAD: 

A draft report prepared by four international banks that have been hired to raise debt from the international market has said that a petition against interest payments poses the biggest risk to the country’s ability to service the debt.

The National Response Framework (NRF) report will be presented to prospective international bidders to allow them to study minute details of the country, from its geography to socio-political and economic conditions before investing in its papers.

Pakistan has decided to enter the international debt market this month, for the first time in seven years, and wants to issue at least $500 million worth of Eurobond of five-year maturity. The debt is being raised to support the dwindling foreign currency reserves, which could not be built despite entering an International Monetary Fund (IMF) programme.

The bond will be floated in the US market and will be registered with the US Securities and Exchange Commission.

The NRF has been jointly prepared by Barclays Bank, Citibank, Deutsche Bank and a consortium of Bank of America Merrill Lynch and KASB Bank. These banks have been hired as transaction managers. Bank Alfalah, Standard Chartered Bank and Silkbank could not qualify.

The government will pay slightly above 1% of the total money to be raised from the bond auction in fee to these banks.

The NRF informs prospective bidders that a petition is pending in the Supreme Court of Pakistan, seeking an order to stop the federal government from making interest payments on loans, under any name.

This comes at a time when the Federal Shariat Court (FSC) has decided to resume hearing of an interest payment case from March 24. The apex court had sent the case back to the FSC. The FSC has asked the Attorney General of Pakistan to argue in the case.

Talking to The Express Tribune, Ministry of Finance spokesman Rana Assad Amin said it was premature to comment on the content of the report, which was subject to many changes.

The report also highlights the risks that could destabilise the political system and also the implications of the war on terror for the economy and foreign investment.

Data credibility

The NRF appears embarrassing for the government on account of credibility of official economic data. It notes that the data reported in the draft may not be reliable as statistics produced by one ministry vary from the data reported by another ministry.

It observes that the data is authentic only to the extent of the ministry mentioned in the report as a source. However, the report notes that Pakistan is following the data standards prescribed by the IMF.

Statisticians and independent economists have long been questioning the credibility of the data related to unemployment, growth, poverty and fiscal deficit.

Unreliability of the data will give an excuse to investors to demand higher risk premium, which will make borrowing through bond float very expensive, according to an expert in the international market.

Government officials are anticipating a risk premium in the range of 5-6%, which is over and above the US Treasury bond rate currently at 1.44% for five-year papers. Pakistan may have to pay around 8% interest rate. In 2007, it had floated a 10-year bond at 6.75%.

The government is going to bid for an expensive loan at a time when cheap World Bank financing is available. But it depends on rationalising gas prices, according to sources

Fabregas: Messi carrying Barcelona

BARCELONA-

The Spain international believes that the prolific attacker is already giving his all for the team and is keen to bounce back from last week’s loss

Cesc Fabregas has insisted that there’s no truth in the rumours suggesting a number of Barcelona players are unhappy with Lionel Messi’s contribution to the team.

The Blaugrana have come in for criticism in the wake of their 3-1 La Liga defeat against Real Sociedad last weekend and Messi has not escaped some harsh words either.

Nevertheless, Fabregas has stressed that everybody at Barca is happy with the Argentine’s hard work for the team and says the entire squad are hoping to make amends for losing their last match.

“If there’s any player that carries the weight of the team on his shoulders, it’s Leo Messi. If more has to be asked of him, then three times as much has to be asked of us,” Fabregas was quoted as saying by AS.

“It’s totally false that anything has been said against Leo. He looks very good to me. Leo has been the most consistent player in world football. I have no doubt that he’ll be there whenever he’s needed. His state of mind is very good, he’s happy.

“He isn’t happy about Saturday, because we’re all disappointed about it. But on Sunday we have another match and that’s where we have to seek a fresh new start. We have two and a half months left and we have to be at 100 per cent.”

Messi has netted 14 goals in 18 La Liga appearances so far this term

Federer wins 6th Dubai Championships final

DUBAI-

Roger Federer roared back from a set and a break down to subdue Tomas Berdych 3-6 6-4 6-3 in the Dubai Championships final on Saturday as the Swiss maestro sealed a 78th singles title.

Federer had recovered from a similar position to stun world number two Novak Djokovic in Friday’s semi-final and the 32-year-old again struggled early on before he dug deep to claim a sixth Dubai crown.

“It was a tough match,” fourth seed Federer said in a courtside interview. “Tomas had the advantage and could have, should have, brought it home, but maybe I got a little lucky.”

Federer nursed a back injury for much of last season and has slumped to eighth in the rankings, his lowest position since 2002, but ahead of Dubai he claimed his best tennis was still to come.

With wins against top 10 opponents in successive days, the Swiss proved there may be some basis to his confidence.

“I have a lot of tennis in my body over the years.

“I’m just happy I’m healthy again and that I can focus on tactics and not on ‘Am I feeling alright when I wake up tomorrow?,” said Federer, whose latest title puts him one clear of John McEnroe and third on the all-time list behind Jimmy Connors and Ivan Lendl.

EARLY MISTAKES

After beating Djokovic, Federer spoke of his need to be aggressive on Dubai’s quick courts, but against Berdych the 17-times grand slam champion seemed too eager to adopt that strategy, over-hitting a series of shots from the baseline in the opening stages.

The third-seeded Berdych, 28, suffered from a similar problem, which made for an error-strewn first set.

Federer broke for a 2-1 lead, but he then surrendered his serve immediately.

Serving at 3-2 down, the Swiss again blundered, a scuffed backhand dribbling into the net to give Berdych a 4-2 lead.

World number six Berdych’s first ace of the match earned a set point, which he took when Federer – who later said his serving was poor in the first set – netted a backhand return.

“That’s something I maybe have to clean up a little bit,” said Federer. “I was struggling with half volleys, I was struggling with my forehand.”

Berdych broke for a 3-2 second set lead to leave Federer facing a third straight defeat against the Czech.

SUBLIME DROP

The Swiss immediately broke back and then held to love following a superbly disguised half-volley drop shot at the net that had the 5,000 capacity crowd roaring his name.

“You just stand on the baseline, try to hit a few good shots and hope he doesn’t keep hitting the big serves,” said Federer, when asked what he was thinking after being broken in the second set.

“I was able to break back right away, which was key. I stayed calm and once I got even I started to play better.”

Having built some momentum, Federer twice held to love and then levelled the match after another Berdych forehand error.

Receiving serve at 1-0 up in the decider, Federer raced to a 40-0 lead but squandered three break points as Berdych, who was on an 11-match winning streak, refused to wilt.

Federer was not to be denied, however, and a long Berdych forehand gave him a 3-1 lead.

There was still time for more jitters, Federer failing to covert two match points against serve at 5-2 up but the Swiss sealed the title soon after as Berdych clubbed another forehand long.

“He is the greatest player of all time – he will never give up and just give you anything for free,” Berdych told reporters.

“Of course I knew that. I was ready for it, but my execution was not good enough to hold it until the end

Man Utd team with Google

LONDON-

Manchester United have joined forces with technology giant Google to allow a handful of soccer fans around the world to follow next month’s clash with Liverpool as if they were pitchside at Old Trafford.

To heighten the sense of being at the game, images of the fans will appear live on the digital advertising hoardings at the stadium during the Premier League game on March 16.

Their pictures will be streamed using the Google+Hangout system — a video chat function.

Google described the move as an “experiment into what the future of supporting your team could be”, although the initiative will be limited to only around 10-20 fans this time.

United fans are being asked to share a picture on Google+ with the tag “#MUFrontRow” to show their support and the participants will be chosen from this group.

English champions United claim to have more than 650 million global followers.

Man Utd team with Google

LONDON-

Manchester United have joined forces with technology giant Google to allow a handful of soccer fans around the world to follow next month’s clash with Liverpool as if they were pitchside at Old Trafford.

To heighten the sense of being at the game, images of the fans will appear live on the digital advertising hoardings at the stadium during the Premier League game on March 16.

Their pictures will be streamed using the Google+Hangout system — a video chat function.

Google described the move as an “experiment into what the future of supporting your team could be”, although the initiative will be limited to only around 10-20 fans this time.

United fans are being asked to share a picture on Google+ with the tag “#MUFrontRow” to show their support and the participants will be chosen from this group.

English champions United claim to have more than 650 million global followers.