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COVER STORY
THE SUGAR INDUSTRY

!title10.jpg (44292 bytes)The sugar industry's dilemma is low level of capacity utilization which does not offer any scope for economies of scale. The industry operates without definite policy framework. However, persistent increase in sugarcane support price can be termed the root cause for the current malady. While there is a need to increase production of sugarcane, it is also evident that some of the units are not economically viable. A option to explore is liquidation of these units. Such decisions are difficult and need political will. Creation of CIRC has paved the way and the ultimate decision should not be delayed.


D-8 SUMMIT
D-8 Summit, held recently in Cairo, has paved the way for an effective economic bloc of the member states. There was no formal announcement regarding formation of an economic bloc, yet the important decisions taken by the summit seem to culminate into formation of an economic bloc of the member countries. Issuance of visa within 48 hours, formation of a Trade Promotion Company (TPC) and holding trade exhibitions may produce positive results. The Islamic Development Bank (IDB) has agreed to provide long term financing on soft term basis on project to project basis.


SOFTWARE MARKET
Expanding the base of domestic market is one of the major prerequisite to sustain the small volume of software exports but is imperative for the very survival of the local software industry. Without a sizeable domestic market Pakistan can hardly expect to become major software exporter. It is also a must for absorbing 90,000 IT professionals produced in the country every year of which a negligible 6,000 manage to get a gainful employment.