The Indonesian government announced a plan to issue global sharia bonds to November from October this year, Director General of Debt Management at the Finance Ministry of Indonesia, Rahmat Waluyanto, said to Indonesian media sources last week.

“The global sharia bonds will particularly target the Middle Eastern market,” Rahmat said.

He said the government would invite international banks of good reputation to help issue the global sharia bonds.

“We will involve local banks particularly to learn how to make international deals and links,” he added.

He said the time table for the issuance of domestic sharia bonds meanwhile remained unchanged.

“We have already extended invitations to 11 prospective domestic and foreign sales agents, four of them main sales agents of SUN (state debentures),” he said.

He said the government would officially issue sharia bonds on August 28 and list them at the Indonesia Stock Exchange on August 29.

D-8 Secretary General welcomes this step taken by Indonesia. Among D-8 member countries, Malaysia is the first member that issue global sharia bonds or sukuk, and now followed by Indonesia. He said that the organization hopes that the rest of the memberstates could learn and follow from these both countries that has studied to optimize the use of sukuk to fund their infrastructure development programs.

Furniture exports during the January - June 2008 period increased by 9.78 percent compared to the same period last year, from US$ 346,8 million to US$ 380,7 million. According to Indonesian Furniture Association chairman, Ambar Tjahyono, the total export value this year is predicted to be US$ 2,6 billion. “This consists of US$ 2 billion worth of furniture and US$ 600 million in handicrafts,” she said yesterday.

She said, in 2009 furniture exports are predicted to rise by 10 percent or US$ 2,2 billion. To support the increase in exports, Ambar hopes the government will be able to help supply the raw material. So far, the craftsmen have had difficulty finding the raw materials, especially rattan. “Good quality rattan sought by businessmen is hard to find,” she added.

Industry minister Fahmi Idris said rattan is in short supply because rattan farmers outside Java get little guidance in rattan cultivation. The rattan business has only been developed in Java, whereas sources of rattan are located outside Java. “The result is that not enough attention is given to rattan-producing areas and farmers often sell their products illegally,” he continued.

The government plans to build a terminal for wood products and train rattan farmers so as to reduce their illegal sale. The areas that will receive such training are Central Sulawesi, Central Kalimantan, South Sulawesi, Aceh and Papua. However, this will be not be carried out simultaneously. “It will be done depending on available funds,” he said.

Fahmi calls on furniture producers to follow market trends, so that their products can compete with those from other countries. He also recommended that the raw material for Indonesian furniture not be made of 100 percent wood or rattan. “Wood and rattan are rare and expensive commodities,” he concluded.

World Bank (WB) has pledged a first phase donation of $100 million to assist Bangladesh in implementing the current fiscal budget, a WB official said yesterday.

This first phase assistance will be provided for the government’s food security programmes for the 2008-09 fiscal year, the new World Bank vice president for South Asia, Isabel Guerrero, told reporters after a meeting with finance adviser AB Mirza Azizul Islam at the Planning Ministry.

The WB official said that her organisation would continue its assistance in ensuring food security, as well as extending assistance in tackling the effects of climate change.

The donor agency might end up doubling its assistance in the current fiscal year, she added. Guerrero said that the country was currently facing three major challenges: climate change, impact of worldwide inflation and food security. The WB would provide assistance to Bangladesh in all three areas, she said.

Finance adviser Mirza Aziz said: “The WB has ensured assistance in the food security sector to reduce budget deficit.”

“The development organisation also assured its assistance in tackling the losses due to climate change,” he added.

The WB vice-president also mentioned an international conference titled Focus Bangladesh, to be held in London on Sept 10. The conference will discuss ways to extend assistance to Bangladesh in facing climate change, including an emphasis on food security.

Guerrero arrived in Bangladesh on Saturday night after replacing Praful C Patel in the post of WB vice president for the South Asia region. This was her first visit to Bangladesh. Donors recently pledged a total $340 million for food security programmes, with the Asian Development Bank (ADB) committing half the amount.

“The World Bank, ADB and other donors will provide Bangladesh with food security assistance worth 340 million dollars, of which the ADB slice will amount to 170 million,” outgoing ADB resident representative Hua Du announced on July 14 ahead of her departure from Dhaka.

D-8 cherished this news by bringing into mind that the pledge was in line with one of the result from D-8 6th Summit in KL earlier this month, where the head of states of D-8 pledged their readiness to deal with the global challenges regarding with the skyrocketing food prices. “We are glad to see the big attention World Bank gave to Bangladesh, that has been facing fiercely against the rising food prices, inflation, and food availability,” said Secretary General Dipo Alam yesterday in his office.

As known, D-8 has identified some potential cooperation to combat the rising food prices threat, as discussed among D-8 head of states in 6th Summit, which includes :

* To develop some fertilizer and pesticide plants in D-8 countries, and apply Preferential Trade Agreement for exporting and importing the products to ease D-8 farmers to produce more food products and the supply;
* To develop cooperation on animal feed factory within D-8 countries; and apply Preferential Trade Agreement for exporting and importing the products;
* To establish a Seeds Bank in D-8 Countries for enough seeds stock whenever are needed for increasing more food products within the countries, as well as a ready stock whenever needed by farmers because of natural disasters, and other unfortunate situation;
* To establish D-8 Food Fund for helping the needy on the food within D-8 countries caused by current unfortunate situation in food crisis time;
* To set up an R&D and technological cooperation in the areas of agricultural development, especially to increase the productivity both in inland-farming and agro-based industry;
* To cooperate for diversifying agricultural products supply, including fishery; animal husbandry; and organic products;
* To establish capacity building, including education and training program; and
* To establish a public-private partnership, by involving more private sectors participation in the programs.

Iranian Foreign Minister Manouchehr Mottaki received a warm welcome from Turkish counterpart Ali Babacan in Ankara, where the visiting official discussed his country’s nuclear program with Turkish officials.

Just a day before his country’s chief nuclear negotiator meets with representatives from world heavyweights in Geneva, Iran’s Foreign Minister Manouchehr Mottaki discussed his country’s contentious nuclear program with Turkish officials in Ankara and said he expected progress in the key talks.

Representatives from Britain, China, Russia and France as well as the European Union’s high commissioner for foreign and security policy, Javier Solana, will meet with Iran’s chief nuclear negotiator, Saeed Jalili, in Geneva to discuss Iran’s response to an offer made by world powers last month to encourage it to give up its sensitive nuclear work, which the West believes is aimed at building a nuclear bomb and Tehran says is for peaceful power-generation purposes.

For the first time, a representative from the United States, Undersecretary of State for Political Affairs William Burns, will also attend the talks, signaling a policy change on the part of Washington and raising hopes that a peaceful settlement may be found to an international dispute over Iran’s nuclear program.

“The new negotiation process [and] the participation of a US diplomat look positive from the outset, but we hope that is reflected in the talks,” Mottaki told a joint news conference with Turkish Foreign Minister Ali Babacan. “We hope good results will come if the process continues in this way,” Mottaki said. Turkey, which has been mediating between Israel and Syria in recent months, has said it is also involved in talks with Iran and expressed support for today’s talks in Geneva, which could be pivotal in deciding whether diplomacy will succeed.

Prime Minister Recep Tayyip Erdogan, speaking later in the day, said Turkey was likely to assume a role in the diplomatic efforts for a solution. Asked whether Turkey’s role could be defined as mediation, he said he wouldn’t go that far. “But the parties may have expectations from us. Turkey may be asked to intervene in difficult times,” he said. Babacan also insisted that while Turkey is against the proliferation of nuclear weapons in its region, it also believes in the right of all countries to use nuclear energy for peaceful purposes.

Babacan has said in recent statements that there have been requests from both sides to “see Turkey in the picture” and that Turkey has been having talks with both sides over the past several weeks. Experts say Turkey, which has good ties with both Iran and the West, is well placed to offer credible assistance to help find a solution in the nuclear row, which Ankara fears could result in a new regional disaster.

In an interview with NTV Mottaki praised the role Turkey has played in the process, saying it was pursuing a “constructive stance.”

On Thursday US National Security Advisor Stephen Hadley met with President Abdullah Gül, Prime Minister Recep Tayyip Erdogan and Babacan during a visit to Ankara. He did not comment on Iran’s nuclear program, but his visit led to speculation in the Turkish media that Turkey was passing his message to Mottaki about a US desire for normalization of relations with Iran.

As part of its diplomatic efforts, the US administration is floating a proposal to open a de facto US Embassy in Tehran. US diplomats would go to Iran for the first time since the countries broke off relations after the 1979 Islamic revolution.

Mottaki insisted on specifically calling a US mission a “US interest-protection bureau,” instead of a diplomatic mission, but raised the prospect of talks on restoring fractured relations between Iran and the United States. “I think there might be an agreement both on the issue of opening a US interest-protection bureau in Iran and on the issue of direct flights to Iran,” he said.

Washington insists it will not negotiate with Iran as it has with North Korea until Tehran halts its enrichment and reprocessing of uranium. But it is supporting an effort led by the EU’s Solana that would allow for early talks with others in the six-nation group before such a step. Iran has rebuffed the attempt to persuade it to stop enrichment and reprocessing, which can produce the key ingredient for atomic weapons, and insists its nuclear program is designed only to produce electric power. Others, particularly the United States and Israel, maintain it is a cover for weapons development.

When asked whether Iran was ready to freeze any expansion of its nuclear program in return for the UN Security Council halting further sanctions against it, Mottaki declined to comment, saying, “Let’s not hurry.” The UN has so far imposed three sets of sanctions on Iran over its nuclear program. Tensions with Iran have particularly intensified since Tehran tested missiles last week, alarming Israel and pushing up oil prices. Washington responded to the tests by saying it would defend its allies against any possible attacks.

Speaking to NTV, Mottaki said he saw almost no possibility of Israel or the United States attacking his country over its nuclear program. “The possibility of such an attack is almost zero,” he said. “It [Israel] is still going through the aftereffects of its defeat in Lebanon,” he said, referring to the 2006 war Israel launched against Lebanon’s Hezbullah guerrillas. There’s nothing left from the [Prime Minister Ehud] Olmert period, so the Israelis know what’s going to happen,” he added.

Mottaki announced that the year 2009 would be marked as Iran-Turkey Culture Year, to celebrate the signing of a cultural cooperation agreement between the two countries 50 years ago. The two ministers discussed bilateral ties and Babacan said the two countries aimed to increase their trade volume to $20 billion from the current $10 billion. Mottaki, a former ambassador to Turkey for five years, also displayed his Turkish skills at the press conference, intervening a few times in the translation of his remarks giving brief answers to some questions in Turkish.

According to an agricultural report drawn up by the Turkish Ministry of Agriculture and Rural Affairs and submitted to the Prime Ministry, the country’s agricultural revenues increased by 80 percent between 2002 and 2007, showing the success of Turkey’s recent land unification projects.

While agriculture counted for $22 billion of gross domestic product (GDP) in 2002, this figure had risen to $39 billion by 2007.

According to figures in the report, agricultural reform is about to be become a reality. In the early years of the republic, state policy sought the distribution of land owned by feudal landlords amongst those capable of tilling them. Even though in 1974 the late Prime Minister Bülent Ecevit took the first step toward achieving agricultural reform, his biggest dream, the attempt proved futile and only 137,000 hectares of land were unified in the 28 years prior to 2002. The lands unified in the five years following 2002, however, amounted to 232,000 hectares, clearly indicating that land unification projects have been quite successful in recent years. Land unification is aimed at allowing farmers to use land more efficiently.

The report prepared by the ministry in June details the agricultural reforms carried out in Turkey over the last five years. It is underscored in the report that agricultural support credits, donations and agricultural reform in general are the basis of the recent success in agriculture. It was noted that a change made to the Soil Protection and Land Usage Law in particular prevented the division of lands after land owners die, which contributed to the recent success. The amendment to the law introduced the officially determined size of the smallest indivisible agricultural land, which is 20 hectares.

The report said that this amendment also prevented the division of lands into many pieces that stems from concurrent possessions. However, a set of changes should be made also to the Turkish Civil Code in order that the reform process can continue in full swing, it added. The salient parts of the proposed change, drafted by the Ministry of Agriculture and Rural Affairs, were also included in the report.

Through the law, expected to be passed before the year expires, the division of lands will be averted, while such lands running a high risk of being divided soon will be sold to third persons if necessary. The changes can be roughly summed up as follows: Agricultural corporations and agricultural lands will be handed over to a single inheritor in order to prevent division. The ownership handover will be completed in six months at most. In the event other inheritors object to the decision, the judge of a court of first instance will have the power to decide which person inherits the land based on a number of criteria, such who has the ability to take care of the land in the best manner possible. Until the court settles the disagreement, such lands will be operated in the most efficient way by third persons.

In the event that all the inheritors have equal financial conditions, the ownership will be transferred to the inheritor who will pay the highest sum for the ownership rights. If the inheritor to whom the ownership is transferred cannot pay the shares of the other inheritors, he will be provided with a cheap loan by the state in order to pay these shares. There will not be any registration transactions at the deed office without completion of these payments. If the hereditary share is made in the frame of the determined regulations and the other inheritors and the Ministry of Agriculture and Rural Affairs are informed, the owner of the agricultural facility or land subject to heritage will be able to apply to a court of first instance for the sale of this facility or land.

In cases of shared-ownership, none of the shares will be sold or taken over to anyone but the shareholders. These shares will not be mortgaged or confiscated.

How was the success story of agriculture written?

The report dwelled on the reasons for the positive developments in the agriculture over the last five years. The most important one of them is the decrease in the interest rates of agricultural loans. The average interest rate for agriculture loans was 59 percent in 2002, and this number decreased to 17 percent after the Justice and Development Party (AK Party) government came to power. Agricultural loan interest rates are between 15 and 17 percents at the moment. The total amount of agriculture loans used in 2002 was YTL 529 million, but this number boomed to YTL 6.2 billion in 2007.

The report explains that while the amount of agricultural incentives was YTL 1.86 billion in 2002 this number reached YTL 5.54 billion in 2007. YTL 1.07 billion was provided to the farmers in 2006 in the form of Rural Development Subsidies and this number reached YTL2.23 billion in 2007. The report also emphasizes that the Ministry of Agriculture and Rural Affairs granted YTL 385 million to 2,683 projects in 2007 and the ministry also granted YTL 137 million to 9,748 drip irrigation projects in 2007.

The ministry also provided a total of YTL 56 million of equipment to 3,660 projects, creating employment for 29,000 people, which added YTL 1 billion to the economy as a result.

The report said after these huge developments in Turkey, the country has become an agricultural country once again, adding that beginning from 2002 there have been large increases in the production of some products that were imported in 2002 due to lack of production.

Production increased by 80 percent in corn, 93 percent in rice, 32 percent in sunflower seeds, 87 percent in bananas, 29 percent in citrus fruits, 32 percent in milk products, 35 percent in white meat production and 40 percent in feed grain production.

In the world that has been experiencing a dramatic increase in food prices, this news is very encouraging, says D-8 Secretary General, Dipo Alam. He said D-8 wish to disseminate this lesson to the rest of its memberstates. He reminded the fact that food prices are very crucial that study reveals that unrest linked to high food price has already occurred in more than 25 countries. At the beginning of 2008, real prices reached their highest level in nearly 30 years. Projections suggest that they are likely to remain relatively high in the next few years, although at a lower level that what is being observed in the first quarter of 2008. “Much will depend on how global supply will respond and on whether demand will continue to grow as rapidly as in the recent past,” he said.

One of the result from D-8 6th Summit in KL earlier this month, was that head of states of D-8 pledged their readiness to deal with the global challenges regarding with the skyrocketing food prices. Some identified potential cooperation that discussed among D-8 head of states and need to be followed for their implementation are:

• To develop some fertilizer and pesticide plants in D-8 countries, and apply Preferential Trade Agreement for exporting and importing the products to ease D-8 farmers to produce more food products and the supply;
• To develop cooperation on animal feed factory within D-8 countries; and apply Preferential Trade Agreement for exporting and importing the products;
• To establish a Seeds Bank in D-8 Countries for enough seeds stock whenever are needed for increasing more food products within the countries, as well as a ready stock whenever needed by farmers because of natural disasters, and other unfortunate situation;
• To establish D-8 Food Fund for helping the needy on the food within D-8 countries caused by current unfortunate situation in food crisis time;
• To set up an R&D and technological cooperation in the areas of agricultural development, especially to increase the productivity both in inland-farming and agro-based industry;
• To cooperate for diversifying agricultural products supply, including fishery; animal husbandry; and organic products;
• To establish capacity building, including education and training program; and
• To establish a public-private partnership, by involving more private sectors participation in the programs.

The shipping industry has witnessed more than 100 per cent increase in the ship fuel in last 12 months, a fact disclosed by Malaysia’s Transport Minister, during the D-8 6th Summit in KL earlier this month.

THE sharp escalation of fuel prices is affecting the cargo shipping trade, Transport Minister Datuk Ong Tee Keat confirmed.

Soaring fuel price is a major source of concern to the transport and logistic services providers who rely heavily on fuel to move the cargoes, regardless of the mode of transport provided, he said. “The shipping industry, for instance, has witnessed more than 100 per cent increase in the ship fuel in last 12 months. For example, the average cost of marine gas oil was only RM1.80 per litre in 2007 but in June, the price has jumped to RM3.60 per litre,” Ong said.

Citing bunker cost which made up 50 per cent of the ship operating cost, he said it had experienced a more than 100 per cent increase from last year.

“For example, the round voyage from Port Klang to Sibu which takes about nine days, the shipping cost has gone up to RM65,000, a 100 per cent increase compared with last year,” he told reporters after officiating the 5th Asia Maritime & Logistic Conference and Exhibition 2008.

Earlier in his speech, Ong urged the transport and logistic industry to come up with a solution on how to address the soaring and volatile fuel prices.

He said that the future solutions must focus on greater fuel efficiency and utilisation, innovative technologies as well as new approaches or re-engineering transport systems and shift in modal movement of cargoes.

“Investment must be made in new transport equipment which are more fuel-efficient while new supply chain and inventory management systems need to be explored for a more efficient delivery system,” he said

D-8 Secretary General pays serious attention to this issue, by proposing to D-8 Commissioners that soon will be established a Shipping Business forum. Prior to this, D-8 has already established working group on civil aviation (WG CA), and the organization hopes that both working group could work hand in hand to facilitate intra trade among memberstates, since the air and sea transportation are very crucial to the development of trade coperation among D-8 countries. “This is extremely important if we take into account the geographical distances in the D-8 region from South East Asia to the West Africa,” said Dipo Alam, D-8 Secretary General at his office yesterday.

The incumbent Secretary General of D-8, Dr. Dipo Alam, was re-elected unanimously for the next 4 year tenure. The decision was made and ratified in the D-8 6th Summit meeting in Kuala Lumpur, Malaysia, by commissioners, ministers, and head of states earlier this month. Alam begun his post as Secretary General in early 2007, when he was assigned for the transitional period of two years. He is considered successful in leading and making noticeable progresses by bringing D-8 Organization into a higher ground among international organisations.

His first step in the office was promoting a more wider and stronger institutional development, by preparing and having the Statutory Document of the Permanent Secretariat. He have also vitalised the D-8 public relations by establishing an effective and efficient website for wider public audience. Under his leadership, D-8 also seek to and gradually expanded its working network with other international organizations, private sectors, and NGOs. Through extensive informational campaign on D-8 Organization, the grouping is now becoming more familiar in the public and global scale.

Dr. Alam graduated from Chemistry Department of University of Indonesia, and School of Engineering and Applied Sciences, the George Washington University, USA, in the field of engineering management, industrial policy and international business, Dr. Alam had several positions at the Government of Indonesia, such as in Indonesian Institute of Sciences (LIPI) as a senior researcher, and also, at the National Development Planning Agency (BAPPENAS) as Bureau Chiefs of Industry, Trade, Mining, Technology, Marine, Aeronautics and Environment. His last position before retired was Deputy Minister of Coordinating Ministry for Economic Affairs for eight years. In this position he had experiences led international meetings, multilaterally and bilaterally, in several Indonesian join commissions with various countries, also meetings with the World Bank, Asian Development Bank, IMF, and other UN organizations.

Click here to download Dr. Alam’s speech during the D-8 6th Summit KL.

The Developing Eight has reaffirmed their commitment to ongoing efforts on the development of alternative fuels, including renewable sources of energy and peaceful uses of nuclear energy.

The members’ commitment to this and to capacity building, transfer of technology and exploration of new sources of supply were part of the Kuala Lumpur Declaration issued at the end of the Sixth D8 Summit last week.

This was among the 25 points made in the Declaration, endorsed and accepted by all the eight member countries - Bangladesh, Iran, Indonesia, Turkey, Egypt, Pakistan, Nigeria and Malaysia, which also mapped out the importance of co-operation among members to see economic success among them.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the group did not object to Iran’s use of nuclear energy as long it was for peaceful purposes, adding that other groups, like the Organisation of Islamic Conference and the Non-Aligned Movement were not against it.

“Nobody (among D8) is against it as long as it is for peaceful use,” he said when asked to comment if the inclusion was to show support to Iran, which was facing mounting pressure from the powerful Western countries for the country to stop its uranium enrichment programme.

Speaking at a joint press conference with other leaders, Abdullah said none of the members were about to embark on using nuclear energy themselves.

“We are not about to do this. Certainly not. We are merely itemising the sources of energy that can be developed in view of the current energy crisis,” he said.

The Prime Minister said with the adverse effects of global economic crisis, D8 countries have agreed to enhance efforts to co-ordinate their various positions in international forums and negotiations through collective measures and enhance regional co-operation to ensure the continued relevance of the group.

He said while trade was a vital area of international activity benefiting both developed and developing countries, an equitable global trading regime should take into account the conditions of developing countries to ensure their economic wellbeing.

News/photosource: BERNAMA News Agency.

akistan is ready to sign a memorandum of understanding with Malaysia on counter terrorism and the abolition of visas for diplomatic and official passport holders.

Pakistan Prime Minister Makhdoom Syed Yousaf Raza Gillani gave the undertaking in talks with Datuk Seri Abdullah Ahmad Badawi on the sidelines of the D8 meeting on Tuesday.

Syed Yousaf said the signing of the Free Trade Agreement between the two countries would facilitate linkage and market access between Pakistan and the growing economy of Asean.

“It would also provide opportunities to Pakistan exporters and industrialists to source out raw materials and intermediary goods from Malaysia at reduced duty enabling them to reduce the cost of their export and become competitive in the global market,” he said in a statement Wednesday.

Syed Yousaf said Abdullah had assured of Malaysia’s full support to Pakistan’s efforts to become a full dialogue partner with Asean and has accepted an invitation to participate in a halal exhibition in Pakistan in October.

“Abdullah said that he would encourage Malaysian companies to invest in Pakistan’s energy sector,” he said.

News/photosource: BERNAMA News Agency.

D-8 head of states in the 6th Summit KL 2008

Members of the Developing Eight (D-8) Muslim nations have echoed Malaysia’s sentiment on the need to address food scarcity and the spiralling fuel prices on top of a looming global economic recession. In a joint statement, the D-8 summit warned that the current global shortage and skyrocketing prices of food posed a “serious threat” to socio-economic stability.

It urged the international community to take action to tame spiralling oil prices and vowed to collaborate to develop alternative fuels and peaceful uses of nuclear energy - in an apparent support for Iran’s nuclear pr ogramme that has been criticised by the West.

Malaysian Prime Minister Abdullah Ahmad Badawi said the group would promote joint ventures among their companies on projects to produce fertiliser, animal feed and create a seed bank to ease supply constraints in agricultural output.

Indonesian President Susilo Bambang Yudhoyono said while there was no quick fix that would sweep aside the challenges, countries must act at once and in concert as any delay would court disaster. “Rice stocks have been predicted to fall to very low levels while the price of rice continues to escalate at a rate that burdens all rice-producing and rice-importing countries.

“This means that more people in the developing world will have less to eat; many will go from hunger to starvation.

“That is why we have to find a solution to this problem of food scarcity. The least we can do in our respective countries is to strive for national food self-reliance,” he said in his statement at the sixth D8 Summit last week.

Fuel Price Burst

Spiralling fuel prices has also been the main concern of the D-8 leaders. Although Malaysia, Indonesia, Iran and Nigeria are oil-producing countries, their economies have been hit hard by rising fuel prices. Oil prices fell by $4 a barrel on Monday, but remain at more than $140 a barrel.

Malaysia raised gasoline prices by 41 percent and diesel by 63 percent last month. The government says inflation is likely to cross 5 percent this year, which has fueled public anger.

Indonesia, the region’s biggest oil producer, is also facing public unrest because of escalating food and oil costs. It said it will quit the Organization of Petroleum Exporting Countries because of declining oil reserves and investments.

Indonesia’s production of roughly a million barrels a day is at its lowest level in 30 years.

Bangladesh chief adviser Dr Fakhruddin Ahmed said the on-going energy crisis made it imperative that D8 enhances its co-operation in the field of energy.

“We need to develop mechanisms, not only to address short-term supply shocks but strengthen co-operation to increase agricultural productivity. This is a must to prevent hunger and malnutrition - one of the key priorities of the Millenium Development Goals,” he said.

Pakistan Prime Minister Syed Yousuf Raza Gilani said the progress achieved by the grouping so far did not reflect the true potential of D8 countries.

He added that there was a need to look into the challenges, analyse and convert them into opportunities.

He said the menace of extremism and terrorism had affected socio-economic development of many countries and Pakistan had suffered the most due to “this curse.”

Kuala Lumpur Declaration Adopted by Memberstates

At the end of the summit, “Kuala Lumpur declaration on meeting global challenges through innovative cooperation” was adopted in the final open session by the heads of the delegations of the eight member countries.

In the three-page joint declaration members reiterated their commitment to goals of the grouping.

“We consider this summit as a turning point in the history of D-8 cooperation celebrating the tenth anniversary and adopting ten-year roadmap and other basic documents to enhance cooperation and solidarity among ourselves.”

The declaration recognised the need to address the current global food shortages and considered it a threat to socio-economic stability. They accepted a Bangladesh proposal to consider creation of a D-8 Food Fund.

On surging oil prices, the declaration expressed commitment to efforts in the energy sector and acknowledged the importance of collaborative efforts to enhance capacity, transfer of technology, exploration of new sources of supply, development of alternative fuels, including renewable sources, as well as peaceful use of nuclear energy.

The declaration recognised intra-regional mobility of labour an effective tool to poverty eradication and development.

In this regard, the members agreed to enhance cooperation and exchange experience concerning protection and promotion of the rights of migrant workers.

The members also agreed to focus on promotion of halal industry by launching joint ventures.

The declaration appreciated the contribution of Malaysia in developing common standards through Halal Development Cooperation, International Halal Integrity Alliance, and the Malaysian International Halal Showcase and the offer of Malaysian Technical Cooperation Programme to conduct halal training programme.

It was also agreed that members would jointly harness the potential of Islamic banking and finance.

News/photosource: BERNAMA News Agency.