A special Japanese economic zone would be established near Karachi on 2,000 acres of land, a high level meeting at Chief Minister House decided this on Thursday night. Chairing the meeting Chief Minister Sindh Syed Qaim Ali Shah underlined the need to provide all facilities at Japan Special Economic Zone (JSEZ) to boost industrial growth with special emphasis to develop agro-based industries.

The Asian Development Bank (ADB) has sought government commitment to tax water used for irrigation, prior to release of funds for the construction of Diamer Bhasha dam. Sources in Finance Ministry told Business Recorder that ADB is of the view that water to be stored in the dam, if used for irrigation of agriculture land, should be taxed.

The Petroleum Ministry has sought an explanation from Finance Ministry regarding replacement of petroleum development levy (PDL) with carbon surcharge on two petroleum products-JP-4 and JP-8. The government is currently charging Rs 3 per litre PDL on JP-4 and JP-8.

Donor countries and international financial institutions (IFIs) have provided loans amounting to Rs 6.3 billion to Pakistan for different development projects in transport and communication sector during the current financial year 2008-09. Pakistan is still to receive $1.78 billion in terms of grants and loans for this sector from different countries and IFIs.

Pakistan is likely to bring Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) from Turkmenistan to meet its energy requirements besides offering Turkmenistan a facility at Gwadar Port for processing gas and export to other markets of the region.

Planning Commission has proposed end to the cross subsidy in power and gas sectors to provide relief to the industry by October 2009. Sources told Business Recorder that the Energy Efficiency and Conservation Consultative Group held its meeting in Planning Commission on March 31 and proposed energy efficiency sector roadmap.

Iran faced opposition from within on Iran-Pakistan (IP) gas pipeline deal as Iranian Oil Ministry had strongly opposed signing of Gas Sales Purchase Agreement (GSPA) in Turkey due to security concerns, fearing that Jundallah Group may create hurdles in materialising the project.

The Asian Development Bank (ADB) and Islamic Development Bank (IDB) have agreed to finance Diamer-Bhasha dam project, and the Planning Commission has asked the Economic Affairs Division (EAD) to formally request assistance from them.

Pakistan faces gas price issue with Turkmenistan regarding Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project as Turkmenistan has shown reluctance to export gas below $11.4 per million British thermal unit (MMBTU).