I think trappy and Naresh should get together and write an encyclopedia.

Intoxication Ji :

I hope this information will be useful :

1. NATIONAL ACCOUNTS (CURRENT PRICES) (http://www.statpak.gov.pk/depts/fbs/statistics/national_accounts/table2.pdf)

The National Accounts were “Re-Based” i.e. up to the Financial Year 1998-1999 basis “Old Base” the GDP for the Year was Pakistan Rupees 2938.379 Billion

After “Re-Basing” the National; Accounts the Pakistani GDP (Market Prices) for the Financial Year 1999-2000 rose to the sum of Pakistani Rupees 3826.112 Billion

In this Manner the GDP rose in One Year by over 30 Per Cent in Pakistani Rupee Terms.

In US Dollars it equates as follows :

FY 1998-1999 : PR 2938.379 Billion @ USD One = PR 47.79 i.e. Pakistan’s GDP was USD 61,5 Billion

FY 1999-2000 : PR 3826.112 Billion @ USD One = PR 51.77 i.e. Pakistan’s GDP was USD 74 Billion.

Note : Had the Pakistani Rupee not depreciated vis-à-vis the US Dollar then the Pakistani GDP for the Financial Year 1999-2000 would have been USD 80 Billion

2. Rebasing of National Income Accounts in Pakistan (http://www.sbp.org.pk/research/bulletin/2005/Opinion-2.pdf)

Cheers:cheers:

Naresh Ji :

Thanks for your time & info. :) Now I know what you meant by “Upgrading”, you meant “Re-Basing”. I thought you meant that they somehow artificially jacked up the figures in order to show that so much “Progress” has been made. Actually this is one of my beefs with the Pakistani system. That they don't do “Re-Basing” more often and hence Pakistan's GDP & other figures are underestimated and when the “Re-Basing” is done, it seems as if they artificially jacked it up!

For example. Even that link mentions the Asian Development Bank saying back in 2002 that: In general, most of the Asian countries, including Bangladesh, China, India, Indonesia, Malaysia, Hong Kong, Philippines, Sri Lanka, Thailand, and Vietnam have followed the practice of rebasing their accounts every 10 years or so; while Korea and Singapore revise their base year after every 5 years. Developed countries undertake rebasing even more frequently. On the other hand, Bhutan and Pakistan on average took 20 and 17 years respectively [Asian Development Bank (2002)].

And since Independence, Pakistan has only rebased her figures 3 Times, I mean WTF???? Pakistan should atleast rebase her figures every 10 years or so . Ideally it should be every 5 years, seen as so much changes, so often, in this fast paced world, over a time period of just 5 years. The only 3 times were in 1961-62, when 1959-60 was used as a base year, as opposed to the average of five years (1949-53). The 2nd time, rebasing was done after a gap of 26 years, finally in 1987-88 when 1980-81 was made the base year. And ofcourse the 3rd time in 2004, when 1999-2000 was made the base years. So that gives an average of Pakistan rebasing her figures every 20 years!! Thats ridiculous!! If they have any sense, then they should rebase the figures in the next few years, but judging from the past, they will wait another 20 years! :ohno:

Rebasing figures in 2004 allowed new items, which were absent before, to be included into the GDP figures, thus giving a much more accurate value of Pakistan's GDP. As an example, strawberry, mushroom, betel leaves, tea, henna (myrtle), condiments, oilseeds, and other non reported crops added 144.1 million rupees to the minor crops category. They contribution to Pakistan' GDP, was previously uncounted for. I actually remember reading about the rebasing back in 2004, and reading it made by blood boil that they don't do it more often!!

Moreover, the value of flowers and leaves (horticulture) was also counted for the first time in the GDP figures. Which resulted in previously uncounted figure of 988.23 million rupees being added to the economy.

The old base year's prices were much lower than that of the new base year (understandably, prices increase over time) and this change resulted into higher Percentage Point changes.

That was the agriculture sector, and the same reasons as listed above, explain the changes in the industrial sector too, i.e. the difference is due changes in price from 1980-81 to 1999-2000, enhanced coverage and revised estimation methodology.

Regarding the Services sector this quote from that State Bank link, sums it up: It is mainly the services sector in which many structural developments and changes have taken place in the last two decades. In order to incorporate all these structural changes it was all the more important to rebase the national income accounts.

I remember you mentioned the "courier service". Well that, along with the inclusion of previously accounted sectors of the economy, such as travel agencies, tour operators, inland water transport, mobile phones and the internet added Rs 10,514 million (note: this figure only includes courier service, mobile phones and the internet).

Not to mention that data on investment companies, exchange companies, discount and guarantee houses, venture capital and insurance companies , and Postal Life Insurance has been compiled for the first time. Giving a more accurate view of the economy. But there weren't only positives out of this rebasing, due to rebasing many Percentage Point differences decreased actually, so did many previous growth rates. So what can get more accurate than that???

So all in all, imo, rebasing should be done more often, as it gives a much more accurate view of Pakistan's economy and it also provides international comparable figures. When I first read about this rebasing back in 2004, I was really glad that Musharraf's government finally did it. The lazy asses of PML-N (Nawaz Sharif) & PPP (Benazir) never did any rebasing!! :ohno:

But I guess, what i want to say, is better summed up in the final remarks by the State Bank:

To sum up, rebasing national income accounts along with its enhanced coverage, which was long overdue, has provided reliable and accurate data incorporating many structural developments and changes in the economy’s relative prices since 1980-81. Moreover, preparing national accounts according to the SNA-93 standards has made the data internationally comparable. But it is very important, as mentioned before, to rebase the national income accounts along side enhancing coverage after, at least, every five years to incorporate the structural changes that take place in the economy.

Furthermore, another primary task ahead for the Federal Bureau of Statistics is the need to link the data series of different base periods by using the reworking methodology since 1948-49. Because, linking data through splicing method does not depict the most accurate figures. Certainly this requires an uphill task and involves many practical difficulties. But once the task is done it would provide very useful information for analytical purposes. The practice has already been done in linking the data since 1960 for the base year 1980-81.

Cheers:cheers:

I think trappy and Naresh should get together and write an encyclopedia.

We might! :cheers:

^^^^

Intoxication Ji :

Many thanks for your detailed reply which is most beneficial.

I apologies for using the wrong terminology i.e. “ “Upgrading” instead of the correct term “Rebasing”.

I do not offer any excuse but attribute this wrong use of terminology to :

1. Not being qualified or knowledgeable in the field of Economics.

2. English is not my Mother Tongue.

I would like to put on record that the GDP calculation not only in Pakistan and India but all over the so-called Underdeveloped – Newly Independent – Emerging Nations does not bear any relation to the "Economic Facts and Conditions" that are prevalent in these Countries.

A case in point is the “Land Transportation” Systems especially in India and Pakistan.

One can marvel at the Indian Railway System transporting 20 Million Passengers a Day. Let us say that the Indian Road Transport System also transports a similar Figure Daily.

As such with One-Seventh the Population at least Five Million Pakistanis would be transported daily as I am sure that to this day neither Manna nor Gold Coins are Raining in Pakistan and thus the populace ha to move about to earn a living as also procure the daily necessities of life.

However the Pakistani Railways only transport 220,000 Passengers a day and so it stands to reason that say Five Million Pakistanis are being transported daily by Road Transport.

In view of the Vast Majority of Pakistani Buses being Privately Operated there is no “Documentation” of the Financial Contribution of this Sector to the Nation’s Economy.

As such the Pakistani GDP of say USD 160 Billion is “severely” under-estimated. Similarly is the case with India.

One can go one adding the various other sectors and people – both in India and Pakistan – i.e. Ram Lala the Paan Seller or Abdul the Kebabwala and the other Thousand upon Thousands, nay Millions, of Entrepreneurs as well of Workers whose contribution is “Undocumented”.

As such the GDP and other Economic comparisons are only “Academic” and not “True or Realistic” at all. It is more of a DMC or for that matter an Excercise in Bovine Faecal Droppings.

Cheers:cheers:

^^^^

Intoxication Ji :

I would like to put on record that the GDP calculation not only in Pakistan and India but all over the so-called Underdeveloped – Newly Independent – Emerging Nations does not bear any relation to the "Economic Facts and Conditions" that are prevalent in these Countries.

In view of the Vast Majority of Pakistani Buses being Privately Operated there is no “Documentation” of the Financial Contribution of this Sector to the Nation’s Economy.

As such the Pakistani GDP of say USD 160 Billion is “severely” under-estimated. Similarly is the case with India.

One can go one adding the various other sectors and people – both in India and Pakistan – i.e. Ram Lala the Paan Seller or Abdul the Kebabwala and the other Thousand upon Thousands, nay Millions, of Entrepreneurs as well of Workers whose contribution is “Undocumented”.

As such the GDP and other Economic comparisons are only “Academic” and not “True or Realistic” at all.

Naresh Ji :

Yes, that is true with Economics. Things are not a 100% accurate, but you should try to and obtain as much accurate figures as possible.

It is more of a DMC or for that matter an Excercise in Bovine Faecal Droppings.

Cheers:cheers:

:laugh:

Cheers:cheers:

Learning a lot from you two guys, Naresh and Intox. Keep up the good work!

You two are giving Booga a headache. :(

WB ledge Pakistan’s budget support to continue (http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Business/06-Feb-2009/WB-ledge-Pakistans-budget-support-to-continue)

World Bank Managing Director, Okonjo-laweala has pledged keeping the budget support for Pakistan continuing. In a meeting with the Federal State Minister for Economic Affairs, Hina Rabbani here, WB MD told this. He said that Pakistan economy during the lost three months has moved towards stabilization

Cheers:cheers:

Pakistan's External Debt and Liabilities (http://www.sbp.org.pk/ecodata/pakdebt.pdf)

Total External Liabilities USD 50.850 Billion

Official Liquid Reserves USD...6.616 Billion

Cheers:cheers:

Remittances rise by over 18% to $4.277 billion

KARACHI: Remittances sent home by overseas Pakistanis rose to $4.277 billion in the first seven months (July-January) of 2008-09, showing an increase of $653.91 million or 18.05 percent over the same period of the last fiscal year.

In January 2009, an amount of $637.30 million was sent home by overseas Pakistanis, up 14.40 percent or $80.23 million, when compared with $557.07 million received in the same month of last year.

The inflow of remittances in the July-January period of current fiscal year from USA, UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1.029 billion, $868.93 million, $838.66 million, $690.30 million, $289.96 million and $131.74 million, respectively, as compared with $1.025 billion, $593.57 million, $663.67 million, $539.88 million, $262.88 million and $103.18 million, respectively, in the July-January period of 2008. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first seven months of the current fiscal year amounted to $428.30 million compared with $432.80 million in the same period last year. The monthly average remittances for the July-January period this year comes out to $611.04 million as compared with $517.63 million during the same period of last fiscal year. During January 2009 remittances from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $169.50 million, $124.54 million, $123.76 million, $93.76 million, $50.14 million and $20.33 million, respectively, as compared with $93.24 million, $151.50 million, $100.61 million, $82.67 million, $35.65 million and $14.19 million in January 2008. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during January 2009 amounted to $54.25 million. The amount of $4.277 billion included $0.39 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

Economic indicators showing positive trend : Prime Minister (http://www.brecorder.com.pk/index.php?id=889865&currPageNo=1&query=&search=&term=&supDate=)

ISLAMABAD (February 14 2009 ) : Prime Minister Yousuf Raza Gilani has said that economic indicators are showing positive trend, and pledge to provide relief to the masses. He was talking to newsmen after taking a briefing from the Planning Commission (PC) about its strategy towards overall development in the country. He said that the financial meltdown had hit the entire globe and not only Pakistan.

About reduction in petroleum products prices, he said that the government for the first time in Pakistan's history had reduced the prices. About Swat situation he said that military action alone was not the solution to the problem. Pakistan has met International Monetary Fund (IMF) targets, he added. Meanwhile, a statement said that the Prime Minister underlined the need for all-out efforts to ensure merit and transparency in every area of national development.

He said that no country could make progress without good governance as this is the key to success and without observing these norms it is not possible to achieve the desired results. He said the people have given the party the mandate for change and there is huge responsibility lying on it to come up to their expectations.

The Prime Minister said this while chairing a meeting to review the performance of the Planning Commission and progress of various projects at the planning commission. The Prime Minister directed the Planning Commission to incorporate nine-point economic agenda in the planning fold which had already been approved by the Cabinet taking all the stakeholders on board for ensuring better co-ordination and implementation.

He said that he would hold a quarterly meeting to review the status of the projects. He also directed that all future planning should focus on areas which could bring about positive change in the lives of the people through socio-economic development. The Prime Minister also directed the Planning Commission to adopt proactive approach while envisaging various projects for securing more FDIs for infrastructure development with a view to alleviating poverty from the country.

He further directed for close co-ordination with all ministries while monitoring of the GOP projects and underscored the need to avoid duplication and overlapping of work as it would not only prove counter-productive but would also cause waste of public money.

He directed the Planning Commission to induct a woman as member in the task force to ensure representation of this important segment comprising over 50 percent of the population. The Prime Minister said that foremost priority areas before the government are to address law and order situation and the economic crisis as both are interrelated.

He said that more funding was being earmarked for infrastructural development and poverty alleviation in the country. He also asked the Planning Commission that it should formulate policies which have the capacity to absorb both internal and external shocks at the time of crisis. He said despite global economic recession, Pakistan's economy has now started showing positive results. He said that not only the inflation has reduced but other economic indicators were also showing improvement. He said that this became possible only due to prudent economic policies introduced by the present government.

Adviser to PM on Finance Shaukat Tareen told the media that the government had taken some tough decisions for betterment of the economic situation. These measures would take some time to bring about improvement in the economy, he added.

Deputy Chairman of Planning Commission Assef Ahmed Ali later told reporters that the Prime Minister was briefed about the Rs 600 million National Human Resource Development program aiming at training around 0.25 million highly skilled technicians annually. He replied in the negative about any cut in the Public Sector Development Program and said that projects worth Rs 100 billion would be thrown forward under the rationalisation program

Cheers:cheers:

Naresh, don't take it the wrong way, are you an Indian?

Naresh, don't take it the wrong way, are you an Indian?

GoBaby Ji :

Yes indeed.

Please let me know if I have "Stepped on your Toes".

I have no intention to do so.

Cheers:cheers:

ISLAMABAD: Pakistan has paid back $517 million to investors of Eurobond on its due maturity date of Feb 18, 2009, indicating Islamabad’s ability to meet its external liabilities without fear of default after obtaining $7.6 billion loan package from the International Monetary Fund (IMF), a senior official of government confirmed on Wednesday night.

Pakistan had launched Eurobond $500 million in Feb 2004 during the Musharraf regime.

After maturity of five years, the Eurobond payment including its principle amount of $500 million was due on Wednesday and Islamabad successfully fulfilled this obligations.

“We have paid back Eurobond payments including its principle amount and interest worth $517 million to its subscribers on Wednesday,” State Bank of Pakistan’s spokesman, Syed Wassimussin confirmed while talking to this scribe here on Wednesday.

The Detusche Bank out of three Lead Managers appointed by Islamabad for Eurobond deal was the agent for making payments to subscribers of this paper. “Yes we received letter from the Economic Affairs Division (EAD) for making payments to Eurobond subscribers and we transferred the amount of $517 million into the accounts of our Agent bank for this deal,” official sources also confirmed on Wednesday night.

Before getting $7.6 billion loan package from the International Monetary Fund (IMF) on November 2008, there was risk of default because of rapidly depleting foreign currency reserves.

The foreign currency reserves held by the central had fallen around $3 billion.

“Now our foreign currency reserves are over $10.2 billion and there is no problem for making this substantial repayment,” the spokesman of the central bank further said.

Pakistani officials and the IMF authorities are currently holding talks in Dubai to qualify for the second tranche worth $775 million of $7.6 billon programme approved in November 2008 to save the country from a default on external payments.

Pakistan is also set to seek additional $4.5 billion from the IMF, jacking up the loan amount from $7.6 billion to $12.1 billion in a bid to improve its foreign currency reserves.

The government should make efforts to generate more revenues as well as curtail expenditures side rather than seeking more foreign inflows, said an independent economist and added that the debt sustainability would become a major issue if Islamabad continued to get foreign loans without well thought out strategy.

The 23-month stand-by loan gave Islamabad $3.1 billion immediately and the rest of the money is to be phased in over the course of the period if Islamabad manages to fulfil IMF’s envisioned targets of reducing the deficit and State Bank of Pakistan’s financing of the government, among other tight fiscal and monetary measures.

OMG they are going for $4.5bn more from IMF!!

40% of the budget is gonna go towards debt servicing!

Why dont they buckle up and try to implement some reform and discipline.

Get rid of all these massive beuaracracies.

OMG they are going for $4.5bn more from IMF!!

These stupid fucks keep taking loans. They are creating a massive problem for the coming generations.

Why doesn't the government start building state run industries like cement factories, textiles, agriculture. It is the only way to become autonome.

^^ Are you kidding me?

The govt. can barely run a parliament.

The easiest way out is to start mass privatization. Most parts of the govt. or govt. run entities should be sold or shut down. The govt. of Pakistan is one massive, corrupt, inefficient beauracracy.

The should start by selling PTV, PIA, closing down most of the useless beuracracies, shut down things like the ministry of "information", fire a large chunk of the ministers and close down their ministries.

Military spending should be frozen for the next 5 years. Pakistan should come up with a new defence strategy focusing on nuclear detterence and a relatively lean and smaller high tech army.

The entire education system should be privatized, the dozens of useless ministers should be fired, jiyalas should be fired from govt. agencies.

This just proves my theory that govt run = low quality, private run = high quality.

But there is need for the govt. to fund education?

Do you suggest that the govt. could like give vouchers to poor people to send their kids to private schools?

The entire education system should be privatized, the dozens of useless ministers should be fired, jiyalas should be fired from govt. agencies.

This just proves my theory that govt run = low quality, private run = high quality.
Ministries should be fired, hehe. Ministries and other such positions are created to hire jiyalas.

^^ Are you kidding me?

The govt. can barely run a parliament.

The easiest way out is to start mass privatization. Most parts of the govt. or govt. run entities should be sold or shut down. The govt. of Pakistan is one massive, corrupt, inefficient beauracracy.

The should start by selling PTV, PIA, closing down most of the useless beuracracies, shut down things like the ministry of "information", fire a large chunk of the ministers and close down their ministries.

Military spending should be frozen for the next 5 years. Pakistan should come up with a new defence strategy focusing on nuclear detterence and a relatively lean and smaller high tech army.

spyk Ji ;

Really?

The World’s Armament Makers survive by fuelling conflicts in various countries and believe me they are the Masters of Hard Sell when it come to selling “New Toys for the Boys in Uniform”

In addition to “Inter-Nation” conflicts our part of the world is suffering from Virulent “Terrorists” – of many colours and ideologies – and so I for one do not see “Defence Budgets-Outlays-Spending ” being curtailed significantly.

As such, I cannot say about Pakistan, but India will continue to add to its figure of “those living under the Poverty Level” which in India I believe to be around the 350 Million Level i.e. Twice the Population of Pakistan

Cheers:cheers:

Pak Economy in 1999 was: $ 75 billion (Source)
Pak Economy in 2007 is: $ 160 billion (Source) and (Source)
Pak Economy in 2008 is: $ 170 billion (Source)

GDP Purchasing Power Parity (PPP) in 1999: $ 270 billion (Source)
GDP Purchasing Power Parity (PPP) in 2007: $ 475.5 billion (Source)
GDP Purchasing Power Parity (PPP) in 2008: $ 504.3 billion (Source)


GDP per Capita Income in 1999: $ 450 (Source)
GDP per Capita Income in 2007: $ 926 (Source)
GDP per Capita Income in 2008: $1085 (Source)


Pak revenue collection 1999: Rs. 305 billion (Source)
Pak revenue collection 2007: Rs. 708 billion (Source) and (Source)
Pak revenue collection 2008: Rs. 990 billion (Source)


Pak Foreign reserves in 1999: $ 700 million (Source)
Pak Foreign reserves in 2007: $ 16.4 billion (Source) and (Source)
Pak Foreign reserves in 2008: $ 8.89 billion (Source)


Pak Exports in 1999: $ 8 billion (Source)
Pak Exports in 2007: $ 18.5 billion (Source)


Textile Exports in 1999: $ 5.5 billion
Textile Exports in 2007: $ 11.2 billion (Source)


KHI stock exchange 1999: $ 5 billion at 700 points
KHI stock exchange 2007: $ 75 billion at 14,000 points (Source)
KHI stock exchange 2008: $ 46 billion at 9,300 points (Source)
KHI stock exchange 2009: $ 20 billion at 4,972 points (Source)


Foreign Investment in 1999: $ 301 million (Source)
Foreign Investment in 2007: $ 8.4 billion (Source)



Debt servicing 1999: 65% of GDP (Source) and (Source)
Debt servicing 2007: 28% of GDP (Source) and (Source)
Debt servicing 2008: 27% of GDP (Source)



Poverty level in 1999: 34% (Source) and (Source)
Poverty level in 2007: 24% (Source) and (Source)


Literacy rate in 1999: 45% (Source)
Literacy rate in 2007: 53% (Source)


Pak Development programs 1999: Rs. 80 billion (Source)
Pak Development programs 2007: Rs. 520 billion (Source)
Pak Development programs 2008: Rs. 549.7 billion (Source)

Source Our Leader - Sir. Musharraf (http://presidentmusharraf.wordpress.com/2008/07/01/economic-comparison-1999-2007-and-beyond/)

spyk Ji ;

Really?

The World’s Armament Makers survive by fuelling conflicts in various countries and believe me they are the Masters of Hard Sell when it come to selling “New Toys for the Boys in Uniform”

In addition to “Inter-Nation” conflicts our part of the world is suffering from Virulent “Terrorists” – of many colours and ideologies – and so I for one do not see “Defence Budgets-Outlays-Spending ” being curtailed significantly.

As such, I cannot say about Pakistan, but India will continue to add to its figure of “those living under the Poverty Level” which in India I believe to be around the 350 Million Level i.e. Twice the Population of Pakistan

Cheers:cheers:

The leadership should have intelligence and the courage to know what the right thing to do is.

Pakistan eyes $40bn aid from donors (http://www.dailytimes.com.pk/default.asp?page=2009/03/08/story_8-3-2009_pg7_1)

* Zardari to attend Friends of Pakistan meeting, donors’ conference in Tokyo
* Govt to seek help in security, infrastructure and energy

By Sajid Chaudhry

ISLAMABAD : Pakistan will seek $40 billion in aid and investment and $6 billion in annual budgetary support over five years during a meeting of the Friends of Pakistan forum and a donors’ conference scheduled in Tokyo on April 17, sources told Daily Times on Saturday.

President Asif Ali Zardari will represent Pakistan during the meetings. Bilateral and multilateral donors will make pledges the same day.

The decision was made in a meeting at the President’s House on Saturday, officials privy to the meeting told Daily Times.

The government would focus on seeking help from bilateral donors in the security, institution building, social development, infrastructure development, governance and energy sectors, the officials said. It will also seek market access for Pakistani goods, oil supplies on deferred payment, barter trade, a trust fund for the development of FATA and debt swaps from western countries, they added.

The participants of the meeting at the President’s House discussed preparations for the events.

In a statement, Presidential spokesman Farhatullah Babar said that the 15-member Friends of Pakistan group was formed in September last year on the initiative of President Asif Zardari to garner international support for bolstering Pakistan’s security and economic situation.

The countries and international bodies included in the group are Australia, Canada, China, France, Germany, Italy, Japan, Saudi Arabia, Turkey, the UAE, the UK, the US, the European Union, the EC and the United Nations.

A number of other countries including Sweden, Norway, Spain and the Netherlands are also likely to join the initiative in the near future, Babar said.

Two meetings of the group have thus far been held, one in New York on September 26, 2008 and the other in the UAE on November 17, 2008.

The April meeting will be crucial as a clear affirmation of support of world powers to stand by Pakistan is considered invaluable for the country’s long-term security, stability and economic development. The donors’ conference on the same day in Tokyo will be attended by representatives of the World Bank and the Asian Development Bank among other bodies to address issues relating to Pakistan’s immediate financial problems.

Cheers:cheers:

The leadership should have intelligence and the courage to know what the right thing to do is.

spyk Ji :

IMO : Political Leadership and Intelligence do not go together in the Indian Sub-Continent!

Cheers:cheers:

WTF! are they mad who da hell is gonna donate $40bn to Pakistan in an already struggling economies of the world.

WTF! are they mad who da hell is gonna donate $40bn to Pakistan in an already struggling economies of the world.

taseer121 Ji :

It is USD 40 Billion in Aid and Investment plus USD 6 Billion Annually for Five Years as Budgetary Support making a Total of USD 70 Billion which Friends of Pakistan and Other Donors will provide for bolstering Pakistan’s security and economic situation.

This proves the Important Position of Pakistan in the Comity of Nations which makes the Donors donate the huge sum of USD 70 Billion required for the long-term security, stability and economic development of Pakistan.

Cheers:cheers:

I doubt we'll even get $10 billion, let alone 70. Now watch someone quote this and say he doubts we'll get even 1 billion.

I doubt we'll even get $10 billion, let alone 70. Now watch someone quote this and say he doubts we'll get even 1 billion.

I bet we won't even get 1 rupee!

HA! Beat that.

I bet we won't even get 1 rupee!

HA! Beat that.
I bet we won't get a Zimbabwean Dollar.

There, I beat you.

WTF! are they mad who da hell is gonna donate $40bn to Pakistan in an already struggling economies of the world.

Its a bit old but relevant

from business week site:


Even though Pakistan's financial crisis isn't directly linked to Wall Street's credit crunch or to subprime mortgages, the country's leaders seem confident that Pakistan will get its own bailout. President Asif Ali Zardari has spent the last month mending fences with India and playing nice with Washington. Zardari is now in China, where he will ask for a soft loan of as much as $1.5 billion. Why is he so confident Pakistan will get the money, when only recently Iceland had to go begging to Russia? Here are the reasons.

http://images.businessweek.com/ss/08/10/1017_pakistan/index.htm

this will answer

Pak Economy in 1999 was: $ 75 billion (Source)
Pak Economy in 2007 is: $ 160 billion (Source) and (Source)
Pak Economy in 2008 is: $ 170 billion (Source)

GDP Purchasing Power Parity (PPP) in 1999: $ 270 billion (Source)
GDP Purchasing Power Parity (PPP) in 2007: $ 475.5 billion (Source)
GDP Purchasing Power Parity (PPP) in 2008: $ 504.3 billion (Source)


GDP per Capita Income in 1999: $ 450 (Source)
GDP per Capita Income in 2007: $ 926 (Source)
GDP per Capita Income in 2008: $1085 (Source)


Pak revenue collection 1999: Rs. 305 billion (Source)
Pak revenue collection 2007: Rs. 708 billion (Source) and (Source)
Pak revenue collection 2008: Rs. 990 billion (Source)


Pak Foreign reserves in 1999: $ 700 million (Source)
Pak Foreign reserves in 2007: $ 16.4 billion (Source) and (Source)
Pak Foreign reserves in 2008: $ 8.89 billion (Source)


Pak Exports in 1999: $ 8 billion (Source)
Pak Exports in 2007: $ 18.5 billion (Source)


Textile Exports in 1999: $ 5.5 billion
Textile Exports in 2007: $ 11.2 billion (Source)


KHI stock exchange 1999: $ 5 billion at 700 points
KHI stock exchange 2007: $ 75 billion at 14,000 points (Source)
KHI stock exchange 2008: $ 46 billion at 9,300 points (Source)
KHI stock exchange 2009: $ 20 billion at 4,972 points (Source)


Foreign Investment in 1999: $ 301 million (Source)
Foreign Investment in 2007: $ 8.4 billion (Source)



Debt servicing 1999: 65% of GDP (Source) and (Source)
Debt servicing 2007: 28% of GDP (Source) and (Source)
Debt servicing 2008: 27% of GDP (Source)



Poverty level in 1999: 34% (Source) and (Source)
Poverty level in 2007: 24% (Source) and (Source)


Literacy rate in 1999: 45% (Source)
Literacy rate in 2007: 53% (Source)


Pak Development programs 1999: Rs. 80 billion (Source)
Pak Development programs 2007: Rs. 520 billion (Source)
Pak Development programs 2008: Rs. 549.7 billion (Source)

Source Our Leader - Sir. Musharraf (http://presidentmusharraf.wordpress.com/2008/07/01/economic-comparison-1999-2007-and-beyond/)



:cheers:

Its a bit old but relevant

from business week site:


Even though Pakistan's financial crisis isn't directly linked to Wall Street's credit crunch or to subprime mortgages, the country's leaders seem confident that Pakistan will get its own bailout. President Asif Ali Zardari has spent the last month mending fences with India and playing nice with Washington. Zardari is now in China, where he will ask for a soft loan of as much as $1.5 billion. Why is he so confident Pakistan will get the money, when only recently Iceland had to go begging to Russia? Here are the reasons.

http://images.businessweek.com/ss/08/10/1017_pakistan/index.htm

this will answer

President Zardari just came back Iran. And, he has a giant sword hanging over his head because of all the political turmoil he is creating. He's not going to get anything from anyone unless the govt. cleans up its act and comes up with a serious long term plan to slash non-developmental expenditures and minimize the current account deficit.

ADB promises $4.4bn aid under Country Partnership Strategy (http://www.thenews.com.pk/daily_detail.asp?id=166632)

May reduce number of projects, to focus on four key areas

Mehtab Haider

ISLAMABAD : As political tension mounts in the aftermath of a crackdown against lawyers and activists of opposition parties to avert a long march, the Asian Development Bank (ADB) has unveiled Country Partnership Strategy (CPS) promising $4.4 billion assistance to Pakistan over three years (2009-11).

But the ADB also announced its intention to further reduce the number of projects in the country to 33 from the current 43 involving total investments of $5.5 billion, by taking ‘tough decisions’ and restricting its future help to only four selected areas.

Approved by ADB’s board of directors in Manila last week, the CPS identified four selected areas including energy and infrastructure, strengthening governance, developing urban centres and effective implementation of projects and capacity building, for extending assistance over three to five years,” said Rune Stroem, Country Director of ADB’s Pakistan Resident Mission while briefing reporters about CPS on Wednesday.

Flanked by ADB’s economist Safdar Pervez and others during the press briefing, ADB high-ups avoided answering a question regarding macroeconomic targets recently agreed by Islamabad with the IMF in the wake of security deterioration and political turmoil, saying that it was the area of the Fund and they were pleased on the invitation extended by the government to participate in recent talks with the IMF held in Dubai as an observer.

Rune Stroem said that ADB was willing to provide funding for construction of Diamer-Basha dam keeping in view social and environmental impact assessments.

“Funding for Basha dam, if provided by ADB, will be over and above the amount committed under the CPS,” he said, adding that they had recently sought technical feasibility from WAPDA to look at the possibility for extending their assistance.

He conceded that there was not much progress on Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline and importing electricity from Tajikistan and Kyrgyzstan to Pakistan, saying that if progress was made on regional cooperation then funding availability would be over and above the commitments under CPS.

“Regional stability is imperative for increasing cooperation between the states. It shows a long term view by the ADB and should not be taken as a short term horizon for enhancing cooperation,” he said.

To another question, he said that regional cooperation would definitely benefit Pakistan in the future. Pakistan, which is currently witnessing power shortages, can overcome its difficulties by pursuing a combination of domestic as well as imported solutions, he maintained.

Regional cooperation, he said, can only be achieved by striking a win-win situation with all concerned states and cannot be achieved unless all states are pleased with such kind of projects.

To another query regarding the existing portfolio of ADB, he said that there were a total 43 active projects with investment of $5.5 billion.

ADB has already rationalised its portfolio as the number of projects stood at 80 by last fiscal year, which were reduced to 43.

Rune Stroem said that ADB was making plans to further rationalise its portfolio by taking tough decisions and 10 more projects, which were not performing satisfactorily, could be done away with before their maturity date.

He said that frequent changes in executing agencies raises sustainability issues in projects funded by the ADB. He said that ADB has decided to stop giving extensions to development projects in order to give a clear message to contractors to accomplish the projects well on time.

When he was asked about the conditions attached by ADB for extending $4.4 billion to Pakistan in the next three years, he said that the bank did not give a blank cheque to the Ministry of Finance and that the Accelerating Economic Transformation Programme (AETP) was aimed at bringing desired reforms in energy, agriculture and financial sectors as bottlenecks needed to be removed.

In a country where crippling power outages increase the cost and challenges of doing business, CPS aims to strengthen Pakistan’s energy supply chain. Measures include augmenting and expanding transmission stations and lines, strengthening distribution companies, and developing power generation facilities using renewable sources.

These and other improvements aim to reduce electricity outages by a further 30 per cent by 2012 and increase the number of grid-connected electricity consumers from 60 per cent in 2008 to 70 per cent by 2013.

Cheers:cheers:

Its a bit old but relevant

from business week site:


Even though Pakistan's financial crisis isn't directly linked to Wall Street's credit crunch or to subprime mortgages, the country's leaders seem confident that Pakistan will get its own bailout. President Asif Ali Zardari has spent the last month mending fences with India and playing nice with Washington. Zardari is now in China, where he will ask for a soft loan of as much as $1.5 billion. Why is he so confident Pakistan will get the money, when only recently Iceland had to go begging to Russia? Here are the reasons.

http://images.businessweek.com/ss/08/10/1017_pakistan/index.htm

this will answer

good link and intresting pictures, i really hope that zardari fulfills his promises and doesn't take Pakistan into another turmoil. If this govt is serious than it shud adress key basic issues like judges issue and law and order. If he gets these two issues tackled then there would be no trouble and our country will go in the right direction.

Rs 20 billion loss estimated due to long march in Multan (http://www.brecorder.com/index.php?id=6639&currPageNo=1&query=&search=&term=&supDate=)

SIALKOT (March 16 2009): Business activities have come to a standstill due to the recurrent public meetings, crackdown and lawyers rallies in this export-oriented and nucleus of cottage industry of the country, Multan. President Sialkot Chamber of Commerce and Industry (SCCI) Hassan Ali Bhatti said on Sunday that according to a rough estimate Multan has faced losses amounting to Rs 20 billion so far due to the long march and political tussle.

The exporters community of Sialkot despite various problems was struggling for fetching maximum foreign exchange for the country and we will continue the fight for strengthening the national exchequer, he further said. Sialkot which is known all over the world for exports of sports goods, surgical instruments, leather products, gloves of all sorts, sportswear, badges, musical instruments and martial uniforms and accessories through the city is earning one billion dollars, was suffering adversely due to the current upheaval in the country.

Bhatti added that business community particularly exporters of the area were facing multiple crisis due to the blockage of highways and seizing of containers loaded with exportable consignments which would delay the delivery of consignments at their ultimate destination.

SCCI President further said exporter community was making its hectic efforts for restoring the confidence of their annoyed foreign buyers because during past months exporters were unable to accomplish the foreign orders on time due to the prices of petroleum and load shedding of electricity and gas.

Hassan Bhatti said under the prevailing situation the exporters were paying 10 to 20 percent of the expenditures from its own packet for fulfilment of the international commitments, adding that how long the business community would spend from its pocket for handling foreign orders.

^^Doubt it

Current account balance becomes surplus after 20 months

RIZWAN BHATTI

KARACHI (March 19 2009): The countrys current account balance has become surplus after the 20 months gap primarily due to massive decline in trade and services deficit and rising trend in remittances. Current account balance was constantly showing deficit since June 2007 largely contributed by the high imports on the back of rising commodity prices in international market.

However, a major cut in the imports followed by slow trade activities has improved the situation and the current account balance has come in the surplus after a 20-month gap. The countrys current account balance has posted a surplus of 146 million dollars during February 2009 as compared to some 279 million dollars during January 2009.

During the February 2009, overall deficit of trade, services and income stood at 898 million dollars over the current account transfers of 1.044 billion dollars, showing a surplus of 146 million dollars in February 2009. With a surplus in the current account balance, the overall current account deficit has come down by 14 percent during the first eight months of the current fiscal year ie 2008-09.

The country has posted a current account deficit of some 7.455 billion dollars during July-February of current fiscal year as compared to 8.645 billion dollars in the same period of last fiscal year, depicting a decline of 1.190 billion dollars.

"Surplus in the current account deficit is a positive indication for the overall economy and the trend would continue," said Muzamil Aslam, an economist. He expected that the current account deficit for the remaining period of current fiscal year would also be on decline on the back of fall in imports. He said that surplus balance would increase the liquidity in the domestic market, which will definitely put pressure for cut in the policy rate.

Muzamil further expected that decline in the current account deficit would also help keep the exchange rate stable, besides strengthening the foreign exchange reserves. "The improving current account situation also indicates overall economic stability and we are expecting further stability in the near future, while with the current declining trend, the IMF target of current account balance would be easily meet," he added.

The State Bank of Pakistan statistics on Wednesday revealed that trade and services sector have presented a significant improvement and contributed major share in the depleting current account deficit, while income deficit is still witnessing upward trend. Services deficit has declined by some 360 percent during the first eight months of current fiscal year.

Services sector deficit stood at 2.713 billion dollars with 2.382 billion dollars exports and 5.095 billion dollars imports in July-February of current fiscal year as compared to a deficit of 4.237 billion dollars with 6.342 billion dollars imports and 2.105 billion dollars export in the corresponding period of last fiscal year.

Overall deficit including goods, services and income stood at 14.499 billion dollars against the current account transfers of 7.125 billion dollars during the July-February of FY09.

The countrys overall goods imports stood at around 21.878 billion dollars and exports at 13.015 billion dollars with a trade deficit of 8.863 billion dollars during first eight months of current fiscal year, which previously stood at 9.294 billion dollars during same period of FY08. Similarly, income deficit surged by 495 million dollars to 2.923 billion dollars with some 3.597 billion dollars outflows and 674 million dollars inflows during the first eight months of current fiscal year.

Copyright Business Recorder, 2009

http://brecorder.com/index.php?id=7767&currPageNo=1&query=&search=&term=&supDate=

** This is major news for the Pakistani economy.

Current account deficit was a big problem facing the country. Lets see if it sustains. The problem is, once energy prices shoot up again, which will happen sooner rather than later, it will go down in the red big time, and, the govt. seems to have no plan to sort of develop long term solutions to the problems facing the economy. They seem content with easy quick fixes, which will only be temporary

Keeping the price of gasoline high in Pakistan paid off like I said it would.

Pak forex reserves improve by $108.5 mln (http://www.geo.tv/3-19-2009/37763.htm)

KARACHI: Pakistan’s foreign exchange reserves have recorded an increase of 108.5 million dollars and stood at 10.11 billion dollars on the week ended March 14.

According to State Bank of Pakistan, of the totals reserves SBP holds 6.68 billion dollars while 3.47 billion dollars are with commercial banks.

The experts attribute improvement in the country’s foreign exchange reserves to the reduction in exports and rise in foreign remittances.

Cheers:cheers:

Our reserves were near $17bn in 2007!! Hope revserves will be revovered soon!!

Thanks Naresh for providing us valuable info!!:cheers1:

Keeping the price of gasoline high in Pakistan paid off like I said it would.

This policy should not be changed, for many reasons.

Edited

KARACHI: The Trade Development Authority of Pakistan has obtained an approval for developing 12 projects and institutes at a cost of Rs12 billion.

The purpose of these projects is to broaden the export base of the country and promote value addition by upgrading the skills and transfer of technology for export-oriented products and services, TDAP Chief Executive Syed Mohibullah Shah said at a press conference on Saturday.

“It is expected that a fashion college will be functional this year and foundation of a dazzle park in Karachi will be laid while other projects will be completed in five years if conditions remained stable,” he said. It took six months for the TDAP to conduct research to make preparations for the projects. The Export Development Fund Board, in its 54th meeting on Friday, approved these projects, which would be partly funded by the EDF and partly by the Public Sector Development Programme, he said.

Shah said the country has enough capability to increase its exports by 20 per cent each year through value addition. Five products from textile, rice and leather made up 80 per cent of total exports, while 12 products had a share of 19 per cent. All other products showed negligible exports, he said.

Pakistan is the fourth largest producer of cotton, fifth largest producer of milk, sixth largest producer of wheat, 11th largest producer of rice, 16th largest in meat and has fourth largest coal reserves. However, its exports increased 11 per cent annually for 60 years. With new technology and focusing on value addition, Shah said, the country would double its exports in five years. The TDAP will work on development of institutes and machinery that would produce skilled people, who would work for the betterment of the trade. The college of fashion and design in Karachi will award four year separate degrees in five categories of textile, leather, jewellery, furniture and ceramic designing.

The dazzle park would be oriented for commercial and trade oriented products in gems and jewellery. More than 30 per cent fruits damage because of poor post harvesting techniques, in order to bring new technology and knowledge, the TDAP chief said,

two mango houses and cold storage centres would be developed in Multan and Nawabshah.

A date processing institute in Khairpur has also been approved. Exports from dates would be increased by five times through proper processing, said the TDAP chief. Carpet training institutes’ development in Quetta and Hala, expansion and upgradation of Gems and Gemmological Institution of Pakistan, Peshawar, establishment of agro food institute in Lahore, leather technology institute in Lahore, marble technology institutes in Karachi and Peshawar, expo centre in Multan and a packaging institute in Karachi are also part of the TDAP projects.

World Bank approves $500 million loan for Pakistan


WASHINGTON: The World Bank on Thursday approved a $500 million interest-free loan for Pakistan to help stabilize the economy in the face of
political and economic turmoil, and investor uncertainty.

Yusupha Crookes, World Bank country director for Pakistan, said policies adopted so far by the government had helped rebuild foreign exchange reserves and lowered inflation.

"However, the sharp deterioration of the global economy poses significant risks to exports, remittances and external financing. "This underlines the importance of Pakistan regaining economic stability and protecting its poorest citizens during the process," Crookes added.

The loan will support the Poverty Reduction and Economic Support Operation designed to support Pakistan's policy measures that promote stability and strengthen competitiveness by bolstering the financial sector and cutting business red tape.

Crookes said the loan will also go toward projects that protect the poor through targeted social programs, such as cash transfer programs for mothers and their infants.

The World Bank loan is part of broader financial support by multilateral institutions for Pakistan, which included a $7.6 billion loan from the International Monetary Fund.

LAHORE: SAARC Chamber of Commerce and Industry (SAARC CCI) has appreciated the Pakistani government’s decision to promote trade with neighbouring countries.

In a press statement on Friday, Tariq Sayeed, SAARC CCI president, said the decision is a positive step, and said that it would help increase the share of Pak trade within South Asia and affect the overall increase in intra-regional trade, which was less than 5 per cent before the formation of SAARC in 1985.

Referring to some studies, including that by Dr Hafiz Pasha, he said that trade diversion towards the region could save enormous amounts of $1.5 billion per annum, if essential products not made locally, were imported from the region, particularly from India.

He said Pakistan has to import raw material of steel and iron, machinery and engineering-based equipments, chemicals, and consumer goods from Australia, Brazil, Mexico, Europe and South East Asian countries, which are also available in India at a compatible quality and competitive rates. “There is no harm if we buy these products from India,” he maintained.

Iftikhar Ali Malik, VP SAARC CCI said that allowing trade through the Wagah-border and increase in importable items from India would help promote Pakistani trade with the largest market of the region and eventually have multiple impacts in terms of saving of huge foreign exchange of the country.

Sayeed stressed upon the need for promoting intra-regional investment, stating that investment has taken over trade strategy due to its multiplier effects, like innovation in technology, value addition, and surplus production for quantum leap in exports, etc. Citing the exemplary increase in Chinese exports, he said that FDI had a major role in increasing the size of exports from China, attracting more than $50 billion per annum FDI for the last one decade.

$500m from WB received (http://www.geo.tv/3-31-2009/38704.htm)

KARACHI : Pakistan’s foreign exchange reserves are expected to surge at $11.60 billion, following the receipts of $500 million from the World Bank and $840 million from IMF.

The Central Bank today has already received $500 million from the World Bank, while the IMF second tranche of $840 million will also be received today, which is expected to take up Pakistan foreign exchange reserves to $11.5997 billion.

It may be recalled the country’s foreign exchange reserves in the week ending March21 stood at $10.2573 billion, which included Central Bank’s $6.79 billion, while those of commercial banks’ $3.4665 billion.

Former Finance Advisor, Salman Shah said that in tandem with the receipts of loan amounts from WB and IMF, if the interest rate was also cut down, then the economy could move to stabilization.

Cheers:cheers:

$500m from WB received (http://www.geo.tv/3-31-2009/38704.htm)

KARACHI : Pakistan’s foreign exchange reserves are expected to surge at $11.60 billion, following the receipts of $500 million from the World Bank and $840 million from IMF.

The Central Bank today has already received $500 million from the World Bank, while the IMF second tranche of $840 million will also be received today, which is expected to take up Pakistan foreign exchange reserves to $11.5997 billion.

It may be recalled the country’s foreign exchange reserves in the week ending March21 stood at $10.2573 billion, which included Central Bank’s $6.79 billion, while those of commercial banks’ $3.4665 billion.

Former Finance Advisor, Salman Shah said that in tandem with the receipts of loan amounts from WB and IMF, if the interest rate was also cut down, then the economy could move to stabilization.

Cheers:cheers:

What are the interest rate for these loans? are these soft loans?

Pakistan seeks $30bn FoP aid for development projects (http://www.thenews.com.pk/daily_detail.asp?id=170160)

Mehtab Haider

ISLAMABAD : Planning Commission Deputy Chairman Sardar Aseff Ahmed Ali said on Tuesday that the government would ask the Friends of Pakistan (FoP) forum in its next meeting in Tokyo to provide $30 billion for development projects over the next five to ten years.

“We will seek $22 billion in the shape of assistance, while $8 billion will be sought as foreign direct investment during the upcoming ministerial level meeting of FoP, in order to execute development projects,” the PC Deputy Chairman said while talking to reporters here on the sidelines of a three-day conference of the Pakistan Institute of Development Economics (PIDE).

He said that most of the development projects would be completed over the next five years, while a few of them would be completed in 10 years, adding that out of the total $22 billion assistance, Islamabad wanted to receive 20 to 25 per cent in shape of grants from the FoP.

“There is a connection between terrorism and the growing menace of poverty, and we are going to ask our western allies to provide us grants for combating poverty and improving social sector indicators,” he added.

He said that the country is facing a severe energy crisis and the government has decided to seek assistance from the FoP forum for construction of Diamer-Basha dam with estimated cost of $11.7 billion.

The Basha dam will be unbundled into civil work and installation of power plants, and the government will seek $6 billion from donors to accomplish the civil work. The government will have to provide $200 to $300 million from budgetary resources to initiate work on the Diamer-Basha dam from the next fiscal year.

He also said that Pakistan would seek $600 million assistance for human resource development by establishing technical and vocation institutions all over the country.

He said that security related projects would be additional to the project aid from FoP. He said that they were introducing a new concept of Alternate Development Vehicle by involving the corporate sector in order to reduce the project’s administration cost below 2 per cent, which might be the lowest all over the world.

To a query about securitization of remittances, he said that Pakistan would ask UAE and Saudi Arabia to provide $3.5 billion in advance in order to improve foreign currency reserves that will pave the way for upgrading credit ratings.

To another query about the government’s plan to cut down development spending in order to achieve the deficit target set by IMF, he said that the government had allocated Rs372 billion for the public sector development programme for the ongoing fiscal, but spending would be around Rs200 billion by June 30, 2009. This means that development spending would be cut down by Rs172 billion against the envisaged allocation of Rs372 billion for the federal share of PSDP in the ongoing fiscal year.

However, during the first day of the PIDE conference, John W Mellor on the topic of ‘Agriculture Development and Food Security,’ said that the global food crisis could be overcome by enhancing productivity of agriculture products. He also stressed upon the need to promote agriculture research and used extension services in order to achieve higher productivity.

Answering a query of Dr Talat about Pakistan’s government policy for subsidizing bio fuel, John W Mellor said that it could result into decreasing productivity because farmers would divert towards bio fuel at the cost of decreasing other agriculture products, resulting into food shortages in the country.

Cheers:cheers:

These ************* governments of ours will never stop begging or stealing money from the country. Eventually Pakistan will die out if we continue to choose *********** like these.

No body will give Pakistan $30 billion, its a wet dream.

No body will give Pakistan $30 billion, its a wet dream.

Lets hope so.

Our rulers have mastered the technique of pointing a gun to their own head to force the world to give us money :laugh:

FoP to invest $30 bln in Pakistan in next 16 years (http://www.geo.tv/4-2-2009/38927.htm)

ABU DHABI: Friends of Pakistan will be investing 30 billion dollars in Pakistan during the next 16 years.

The two-day meeting of FoP culminated today in Abu Dhabi with the release of a common communiqué.

According to sources, the investment in energy sector will be used for hydro projects in Pakistan to meet its power requirement.

The FoP appreciated the political reconciliation in the country but expressed their concern on the overall security situation

Cheers:cheers:

FoP to invest $30 bln in Pakistan in next 16 years (http://www.geo.tv/4-2-2009/38927.htm)

ABU DHABI: Friends of Pakistan will be investing 30 billion dollars in Pakistan during the next 16 years.

The two-day meeting of FoP culminated today in Abu Dhabi with the release of a common communiqué.

According to sources, the investment in energy sector will be used for hydro projects in Pakistan to meet its power requirement.

The FoP appreciated the political reconciliation in the country but expressed their concern on the overall security situation

Cheers:cheers:

LOL this has to be the biggest joke in the world

yeah but its gonna be given in 16 years and will be given to hydro power projects mainly so i see it as imaginable...

What a frickin joke!

Someone should slap Zardari and tell him no money for you you stupid beggar.

Defence spending, interest on debt absorb three-fourths of revenues (http://www.brecorder.com/index.php?id=911845&currPageNo=1&query=&search=&term=&supDate=)

RECORDER REPORT

KARACHI (April 05 2009) : Defence spending and interest costs on country's rising debt are absorbing three-fourth of the revenues, says the State Bank of Pakistan. The second quarterly report on the economy, issued by SBP, on Saturday also said that due to sharply constrained access to international capital markets as well as slower deposit growth in banks, the domestic interest rates will be more sensitive to government funding demands through the volume-based auctions of government paper.

-- SBP lowers GDP growth forecast to 2.5-3.5 percent

-- T-bill purchases to determine banks' interest rates

-- Inflation to decelerate sharply in the final quarter

-- C/A deficit expected between 5.8 percent and 6.2 percent

The sharp fall in private sector credit off-take (a mere 4.6 percent as against 11.7 percent July-February a year ago) SBP feels, was mainly due to slowing of economic activity, sharp fall in cost of raw materials, busting of asset-price bubbles in key markets, rising financing cost - due to high liquidity and credit risk premium as well as monetary tightening, etc.

SBP measures to increase the banking sector liquidity and loosening of capital requirements to support banks' ability to lend instead of seeing a rise in private sector credit allowed the government to increase its borrowings from scheduled banks, says the report.

INTEREST RATES : SBP forewarned that the expected sustained fall in inflation and increase in forex reserves would allow easing of monetary policy. However, this is not necessarily expected to herald a recovery in manufacturing activity as the real sector is constrained by other bottlenecks such as energy shortages and high risk premium.

Since monetary easing impacts the real sector by time lag, the real GDP growth will remain weak in FY09 despite a reasonably good showing by both agriculture and service sector. SBP warned the country will remain dependent for its financing needs on concessional external assistance as sources of domestic financing are either not available or remain risky due to vulnerable external account position.

With the drying up of capital flows, official assistance seems to be the only option for countries like Pakistan to stimulate its economy to put it back on sustainable path of growth and development. SBP report recalls that high growth rate, low inflation, low fiscal deficit and either surplus or negligible current account deficit during FY03-FY07 period were wiped out due to commodity price shocks.

Financial services outreach is still limited, says SBP. For raising the rate of savings and obtain sustained growth, SBP advocates the need for focusing and increasing the financial outreach to rural and far-flung areas, development of a long-term debt market, investment plans for pension funds, revitalisation of mutual fund industry and a corporate bond market for efficient allocation of resources. Another benefit of financial depth would be in the form of more effective monetary policy transmission, the report says

Cheers:cheers:

This year we are going to see decrease in per capitaa income, bcoz of depreciation of exchange rates!! And high inflation, near 25(currently near 20%) and slow industrial growth, bcoz of increasing intrest rates(15%), 15% is too much!!

This year we are giong to see decrease in per capitaa income, bcoz of depreciation of exchange rates!! And high ifnflation, near 25(currently near 20%) and slow industrial growth, bcoz of increasing intrust rates(15%), 15% is too much!!

abidi2009 Ji :

Welcome to the Club.

India, Bangladesh, Sri Lanka - amongst others - are in the same boat!

Cheers:cheers:

The PPP is just here to mess our country up. They dont care about the people, only making money!

Defence spending, interest on debt absorb three-fourths of revenues (http://www.brecorder.com/index.php?id=911845&currPageNo=1&query=&search=&term=&supDate=)

RECORDER REPORT

KARACHI (April 05 2009) : Defence spending and interest costs on country's rising debt are absorbing three-fourth of the revenues, says the State Bank of Pakistan. The second quarterly report on the economy, issued by SBP, on Saturday also said that due to sharply constrained access to international capital markets as well as slower deposit growth in banks, the domestic interest rates will be more sensitive to government funding demands through the volume-based auctions of government paper.

-- SBP lowers GDP growth forecast to 2.5-3.5 percent

-- T-bill purchases to determine banks' interest rates

-- Inflation to decelerate sharply in the final quarter

-- C/A deficit expected between 5.8 percent and 6.2 percent

The sharp fall in private sector credit off-take (a mere 4.6 percent as against 11.7 percent July-February a year ago) SBP feels, was mainly due to slowing of economic activity, sharp fall in cost of raw materials, busting of asset-price bubbles in key markets, rising financing cost - due to high liquidity and credit risk premium as well as monetary tightening, etc.

SBP measures to increase the banking sector liquidity and loosening of capital requirements to support banks' ability to lend instead of seeing a rise in private sector credit allowed the government to increase its borrowings from scheduled banks, says the report.

INTEREST RATES : SBP forewarned that the expected sustained fall in inflation and increase in forex reserves would allow easing of monetary policy. However, this is not necessarily expected to herald a recovery in manufacturing activity as the real sector is constrained by other bottlenecks such as energy shortages and high risk premium.

Since monetary easing impacts the real sector by time lag, the real GDP growth will remain weak in FY09 despite a reasonably good showing by both agriculture and service sector. SBP warned the country will remain dependent for its financing needs on concessional external assistance as sources of domestic financing are either not available or remain risky due to vulnerable external account position.

With the drying up of capital flows, official assistance seems to be the only option for countries like Pakistan to stimulate its economy to put it back on sustainable path of growth and development. SBP report recalls that high growth rate, low inflation, low fiscal deficit and either surplus or negligible current account deficit during FY03-FY07 period were wiped out due to commodity price shocks.

Financial services outreach is still limited, says SBP. For raising the rate of savings and obtain sustained growth, SBP advocates the need for focusing and increasing the financial outreach to rural and far-flung areas, development of a long-term debt market, investment plans for pension funds, revitalisation of mutual fund industry and a corporate bond market for efficient allocation of resources. Another benefit of financial depth would be in the form of more effective monetary policy transmission, the report says

Cheers:cheers:

Oh no! How could you even question the wise decision to spend 20% of the budget on defence! The bad evil Indians will take over Pakistan and kill everyone! I say ramp up defence spending even more! Its all India's fault you know. Who cares about education and like infrastructure, thats for loserly cowardly countries.

Pura basura humana estos proyectos.... Inmundicia social construyen en este lado del mundo... mis condolencias...

Pura basura humana estos proyectos.... Inmundicia social construyen en este lado del mundo... mis condolencias...

Don Alexcostacurta Ji :

Bienvenida!

Many thanks for your kind condolences.

I trust you will appreciate the Universal Phenomenon that "The Boys in Uniform" want to Play with "Bigger, Faster and More Destructive" Toys!!

Salute – Dinero e Amor!!!:cheers:

Oh no! How could you even question the wise decision to spend 20% of the budget on defence! The bad evil Indians will take over Pakistan and kill everyone! I say ramp up defence spending even more! Its all India's fault you know. Who cares about education and like infrastructure, thats for loserly cowardly countries.

spyk Ji :

So very true.

At present Pakistan’s Military Personnel, Armament and Capabilities are only about 60% as compared to India’s.

Pakistan must have at least Total Parity – if not more – with respect to Defence Capabilities as compared to India’s.

Twice the Indian Capabilities would ensure that Pakistan will be able to give a “Mouth Breaking” Response to anybody who looks at Pakistan with an “Evil Eye”!

Cheers:cheers:

spyk Ji :

So very true.

At present Pakistan’s Military Personnel, Armament and Capabilities are only about 60% as compared to India’s.

Pakistan must have at least Total Parity – if not more – with respect to Defence Capabilities as compared to India’s.

Twice the Indian Capabilities would ensure that Pakistan will be able to give a “Mouth Breaking” Response to anybody who looks at Pakistan with an “Evil Eye”!

Cheers:cheers:

The problem is not diverting money from defense to civilian sector but diverting money from swiss banks to where they are supposed to be spent.

A defense budget of around $5 billion is not a 'huge' budget especially considering the scenario we are in.

If you have a leak in a bucket, pouring in more water from another bucket won't keep it full.

Tarin rules out cut in defence budget (http://www.thenews.com.pk/daily_detail.asp?id=171092)

Tuesday, April 07, 2009

KARACHI: The adviser to the Prime Minister on Finance Shaukat Tarin has ruled out any possibility of cutting the defence budget in the next fiscal year, and reiterated that everyone (including stock exchanges) would be brought into the tax net in the next two to three years.

He was talking to journalists on the sidelines of BMA Fund forum organised here on Monday. Replying to a question, Tarin said that Pakistan was facing security challenges on the eastern and western borders and no question arises, in this tough time, to slash the defence budget in the next fiscal year, 2009-10.

He maintained that the defence budget has rather come down in terms of GDP ratio and the overall budget amount in the last 10 years. He was asked about concerns expressed by the State Bank of Pakistan (SBP) over rising defence expenditures in its second quarterly report on economy unveiled on last Saturday.

When asked would the government levy any new tax on stock exchange e.g. capital gains tax, Tarin said everyone would be brought under tax net in the next two-to-three years - though he did not explicitly mentioned the word stock exchanges in his answer.

Earlier, there were some conflicting news in the media regarding levying some new taxes on local bourses from the next fiscal. As a matter of record, the renewed exemption of capital gain tax on securities transaction would come to end on June 30, 2010, which the exchanges were enjoying since 1974.

Addressing the BMA Fund forum, Advisor said that Pakistan would no more be a poor state in the next five to seven years time. “Government is doing its best on the economic front and we would bring the inflation down in single digit by July-August 2009. Moreover, we would also bring the current account deficit under six per cent limit.”

He was of the view that improvement in the country’s economic indicators was just the beginning and his team has to work harder to streamline the economy. He also talked about strengthening regulatory bodies i.e. Securities & Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR) to provide level playing field and enable the economic environment here.

Talking about safety net and sustainable economic growth, he pointed out it must to take care of 50 million people living below the poverty line, and fix problems in agriculture and manufacturing sectors, to which the biggest part of country’s employees are connected.

Besides, he also stressed upon bring political stability and controlling law & order to keep economy growing in the future. On the occasion, Governor SBP Syed Salim Raza gave a comprehensive talk on country’s financial sector and urged upon exploiting debt and equity market for generating resources.

Morgan Stanley, Chief Investment Strategist, David Darst gave a detailed presentation on Global Market Outlook. He said that world markets were still bearish, but the financial and economic recessions would over in the next two-to-three years and would not prevail for 10-to-15 years this time, he believes.

While suggesting a strategy as what to do under in this time of recession, he urged people to remain patient and decisive these days. Mudassar M Malik, Chief Executive, BMA Funds and Farrukh H Khan, Director BMA Funds also spoke on the occasion.

The problem is not diverting money from defense to civilian sector but diverting money from swiss banks to where they are supposed to be spent.

A defense budget of around $5 billion is not a 'huge' budget especially considering the scenario we are in.

If you have a leak in a bucket, pouring in more water from another bucket won't keep it full.

KB Ji :

I can only make deductions-estimates from the contents of the Business Recorder Article Defence spending, interest on debt absorb three-fourths of revenues (http://www.brecorder.com/index.php?id=911845&currPageNo=1&query=&search=&term=&supDate=)

Thus if Defence and Debt Servicing constitutes 75% of the Budget is on Defence Spending and Interest Payments on Foreign & Domestic Debt then the amount would be USD 19 Billion (Pakistan’s 2007-2008 Budget Outlay was about USD 25 Billion).

One can find out the Payment in lieu of Interest Payments on Debt which I feel should be about USD 8 Billion or so. Thus the Defence Spending would be very much larger-higher than the USD 5 Billion figure you mention.

I would be grateful if you can check the actual Pakistani Budget Outlay for 2007-2008 and the Amounts Paid in respect of Foreign and Domestic Debt and then we will have an indication of the Pakistani Anuual Defence Spending for the Year 2007-2008

Cheers:cheers:

The problem is not diverting money from defense to civilian sector but diverting money from swiss banks to where they are supposed to be spent.

A defense budget of around $5 billion is not a 'huge' budget especially considering the scenario we are in.

If you have a leak in a bucket, pouring in more water from another bucket won't keep it full.

I am sure you would agree, defence spending is the biggest hole in the bucket.

The choice, generally, tends to be very clear, become a national security state, like the US or Israel or North Korea, or, become a modern, progressive state where development and education and infrastructure and science take the highest priorities, like South Korea or Singapore.

Pak urges $30bn Marshall Plan to stabilize border region (http://aaj.tv/news/National/133345_detail.html)

WASHINGTON ( 2009-04-08 10:07:59 ) : Pakistan has called for a $ 30 billion Marshall Plan to bolster socio-economic development of people as a way to wipe out al Qaeda threat in the Pak-Afghan border region and help win hearts and minds of the local population.

The cost to the West for such a plan in the high-stakes region was negligible compared to that of rescuing failing banks and corporations, Pakistan's ambassador to the United States told The Washington Times.

"Despite the economic issues that the world is facing, the cost of a Marshall Plan for Afghanistan and Pakistan is going to be minuscule (compared) to the bailouts being given to American car companies and AIG (American International Group)," Husain Haqqani said.

The plan, he advocated, will help bring stability to the region as well as blunt anti-American sentiment.

"And the impact in terms of American security and in terms of the longer term stability of the world in a very precarious region will be far greater. Pakistan has the will to fight terrorists, it needs the means and the United States should provide those," he underlined.

Pakistan needs $5 billion a year for the next five years from the United States and its allies to build local law enforcement of about 100,000 men, strengthen counter-insurgency against the Taliban and al Qaeda and persuade average Pakistanis that the US-led war on extremism is Pakistan's war and essential for the country's survival, he argued.

The ambassador denied allegations against Pakistan's intelligence organization, ISI, that it was helping the Taliban.

He said the US public diplomacy in the Muslim world had lagged under the Bush administration and praised Obama's efforts to reach out to Muslims.

"We are glad that President Obama has taken the initiative," Haqqani said. "The more President Obama and his team reach out, the easier it will be to mobilize people against the extremists and terrorists."

The envoy cautioned, however, that it would take time to change attitudes as many remember that the US supported Pakistan during the fight against Soviet occupation in Afghanistan, then 'deserted us.'

"This is not a switch that can be turned on and off," he said. "It takes a while for the counter-narrative to be accepted."

Copyright APP (Associated Press of Pakistan), 2009

Cheers:cheers:

i doubt us will give us that amount of money and the one they r giving is attached with strings...

Forex reserves cross $11 bln : SBP (http://www.geo.tv/4-9-2009/39450.htm)

KARACHI : The foreign exchange reserves of the country surged beyond 11 billion dollars following the receipt of loan from IMF and World Bank, State Bank of Pakistan said here on Thursday.

SBP spokesman Syed Wasimuddin told Geo News that the foreign reserves increased by 1.62 billion dollars to 11.71 billion dollars which previously stood at 10.9 billion dollars.

Out of the total amount of reserves, SBP holds 7.80 billion dollars while 3.36 billion dollars are with commercial banks

Cheers:cheers:

Lol Zardari is stupid. 30 billion in his dreams. Pakistan should stop asking the US for money. Afterall they messed our country up.

Nobody from U.S messed up our country.
We did it ourselves and now we have to re-build it. Don't blame anybody else before seeing your own mistakes.

+1 sir

Nobody from U.S messed up our country.
We did it ourselves and now we have to re-build it. Don't blame anybody else before seeing your own mistakes.

:applause:

i doubt us will give us that amount of money and the one they r giving is attached with strings...

taseer121 Ji :

Of course, there will be strings attached to the Loans (If all forms and items are included then the total sum might be in the vicinity of USD 100 Billion).

I think Pakistan will put in – amongst others - three paramount conditions i.e.

1. The Interest will be as low as possible.

2. The repayment period will be as long as possible.

3. A large part of the Loans to be considered as Grants so the Interest and Repayments will be minimized.

One can surely visualize the Condition(s) put by the USA and other Friends of Pakistan.

Note : Pakistan is very lucky, Thank God, that it does not have to give any collateral whereas India, in 1992 or so, had to Mortgage her Gold Reserves - the Gold was flown to London by Air India "Freighter" Aircrafts - to get the much needed Foreign Exchange.

In due course India repaid the Loaned Foreign Exchange and reclaimed her Gold Reserves.

Cheers:cheers:

taseer121 Ji :

Of course, there will be strings attached to the Loans (If all forms and items are included then the total sum might be in the vicinity of USD 100 Billion).

I think Pakistan will put in – amongst others - three paramount conditions i.e.

1. The Interest will be as low as possible.

2. The repayment period will be as long as possible.

3. A large part of the Loans to be considered as Grants so the Interest and Repayments will be minimized.

One can surely visualize the Condition(s) put by the USA and other Friends of Pakistan.

Note : Pakistan is very lucky, Thank God, that it does not have to give any collateral whereas India, in 1992 or so, had to Mortgage her Gold Reserves - the Gold was flown to London by Air India "Freighter" Aircrafts - to get the much needed Foreign Exchange.

In due course India repaid the Loaned Foreign Exchange and reclaimed her Gold Reserves.

Cheers:cheers:



:shocked:


Seriously?

Nobody from U.S messed up our country.
We did it ourselves and now we have to re-build it. Don't blame anybody else before seeing your own mistakes.

Yeah they did!
Bush made the war in Afghanistan, then forced pakistan to join in, and then that made all these terror attacks in pakistan which therefore messed the whole country up. Bush threatend musharraf that he will turn pakistan into the stone age if he did not joing the war on terror. Mush even said so when he stepped down.

Japan considers bln dollars aid to Pakistan (http://www.geo.tv/4-11-2009/39566.htm)

TOKYO : Japan is considering providing up to one billion dollars in economic aid to Pakistan over the next two years, a newspaper reported on Saturday.

The Japanese government will reveal details of the planned aid in Tokyo on April 17 at a meeting of donors to be co-hosted by the World Bank, a business newspaper said.

The assistance -- a combination of yen loans and grants -- is designed to help poverty-stricken areas of Pakistan that could become breeding grounds for terrorists, the newspaper said.

Funds will also be used to build infrastructure and provide education and job training, it said.

Conference participants, including Pakistani President Asif Ali Zardari and US envoy Richard Holbrooke, are expected to agree on giving around four billion dollars in aid to Pakistan over a two-year period, the daily said.

Japan has sought to contribute to US-led efforts in Pakistan and Afghanistan since US President Barack Obama's administration reviewed its policies and appointed Holbrooke as regional envoy.

Japan, which has been officially pacifist since World War II, is hoping to expand its role in international security short of dispatching troops.

"We must show our strong commitment as the chair nation," a Foreign Ministry official said, according to Nikkei.

Cheers:cheers:

Pakistan needs $110 billion over five years : IPDF (http://www.dailytimes.com.pk/default.asp?page=2009/04/11/story_11-4-2009_pg5_2)

ISLAMABAD : Pakistan is in need of substantial private sector investment requiring approximately $110 billion over next five years to cater to the infrastructure necessities for growing population, y Ghulam Murtaza Satti, adviser on Public-Private Partnership (PPP) said during an investors forum arranged by Infrastructure Project Development Facility (IPDF).

The investors observed that there should be consistency and continuity in the policies and stressed the need for legislation to cover loopholes in PPP. They quoted examples of Lahore –Faisalabad road on BoT of Punjab Government and Lakpass tunnel project on BoT of NHA. The investors also quoted the statement of Minister of Ports and Shipping regarding cancellation of concession agreement signed between Government and Singapore Port Authorities, which can affect business environment in the country.

Talking to a group of investors, Satti said that elected government is fully cognizant of the importance of PPP and is laying emphasis for which IPDF is a focal entity. He highlighted the key issues like employment generation, economic empowerment and additional use of existing infrastructure associated with the economic development of the country. He further said that the PPP has also got support of the International Institutions like, World Bank and Asian Development Bank to carry out its policy.

Ghulam Murtaza Satti added that IPDF takes special care of the appropriateness of the transaction structure, sizing of the project to the right demand transaction suitability by taking into consideration the concerns of the investors and the lenders. Urging the investors, he assured them that their concerns will be taken care off while drafting concession agreements for the infrastructure projects in order to make them air tight so that these concessions should be workable and should not be affected by change of government.

Giving presentation to participants, IPDF team informed about 11 projects of IPDF worth of Rs 200 billion which are at various stages of the development. Representatives of Board of Investment, Daewoo, Fauji Foundation, FWO, Inter Construct Pvt. Ltd., Lakson Group, PTCL, Sachal Engineering, SCG, Development Infrastructure, Infrastructure development Company, Habib Rafiq Pvt., MCB Bank, Emaar Pakistan, TGS, SCG and IDC attended the investor forum. staff report

Cheers:cheers:

^^^^ Thats ridiculous!

:hilarious

There is nothing funny about that assessment, it is absolutely spot on. In reality, Pakistan needs hundreds of billions of dollars to develop its infrastructure in line with population growth and poverty eradication, but we won't actually get that amount in the form of investment or aid. The guy only said we need that much money, not we are going to get it, and he also said there should be continuity in policies from one government to the next which of course makes sense again.

Yeah they did!
Bush made the war in Afghanistan, then forced pakistan to join in, and then that made all these terror attacks in pakistan which therefore messed the whole country up. Bush threatend musharraf that he will turn pakistan into the stone age if he did not joing the war on terror. Mush even said so when he stepped down.

That was our biggest mistake to be a part of the so-called War on Terror. Killing your own people is not called a war. I think we ourselves are guilty. We have turned our country into a kind of DANGER ZONE. And by "We", I mean all of us. :ohno:

^^jee ohe sheera...... u should become an analyst on Pakistani news channels.. i bet u wud perform better than those retarded pro indian and biggest traitors.

There is nothing funny about that assessment, it is absolutely spot on. In reality, Pakistan needs hundreds of billions of dollars to develop its infrastructure in line with population growth and poverty eradication, but we won't actually get that amount in the form of investment or aid. The guy only said we need that much money, not we are going to get it, and he also said there should be continuity in policies from one government to the next which of course makes sense again.
People are only laughing at the implication that Pakistan actually expects to get this money.

That was our biggest mistake to be a part of the so-called War on Terror. Killing your own people is not called a war. I think we ourselves are guilty. We have turned our country into a kind of DANGER ZONE. And by "We", I mean all of us. :ohno:

Yeah but Bush made a threat to Musharaf, if he did that threat we would be like afghan now. but he was probably chatting shit, just look at Iran.

This is the economic thread, kindly use the PM to continue your discussions further among yourselves.

We are sounding like beggers.
"please we need $110 Billion"

Pakistan loses $35b in war on terror: Tarin

By: Imran Ali Kundi | Published: April 14, 2009

ISLAMABAD - Pakistan is expected to get US $4 billion in the meeting of Friends of Democratic Pakistan (FoDP) scheduled on coming Friday, April 17.
Advisor to Prime Minister on Finance and Economic Affairs Shaukat Tarin and Information Minister Qamar Zaman Kaira said this on Monday while addressing a joint press conference here at PID Media Centre.
Tarin said Pakistan had lost $35 billion in the ongoing war against terror during the last eight years. Due to security concerns in Pakistan, foreign investors were also not coming, he said, adding the number of large operational industrial units in the country had reduced from 2,250 to 550.
“Our agriculture and manufacturing sectors were neglected during the past regimes and resultantly the agri sector could not provide the satisfactory results. Therefore, we would focus on the sector to increase its efficiency,” Tarin said.
He said social sector was not performing well because of lower allocations to health and education budgets, which were 0.5 per cent and 1.5 per cent of the GDP respectively. The Advisor said the government would inform FoDP about these problems and also ask them to set up a trust fund for the affected people of NWFP and Balochistan.
Present government was taking measures for the uplift of the poor and needy persons but success could not be achieved in that respect unless the poor and deserving persons were identified, he remarked. The government would soon conduct a survey with reference to income of the people, he indicated.
Answering a question, he expressed his displeasure over the working of Federal Board of Revenue (FBR) and said there was an urgent need to reform it.
He said after the verification of needy people, government would issue Benazir Card to such families through which they could get Rs 1,000 per month, employment to one person, and health insurance up to Rs 20,000.
Answering a question, he said he was not happy with the working of Federal Board of Revenue and there was need to bring reforms in it.
Speaking on the occasion, Kaira said Pakistani delegation headed by President Asif Ali Zardari would visit Japan today (Tuesday). He said there would be two separate meetings; one of FoDP and other of donor agencies.

What a retarded, slave of the us gov we have :mad:

What a retarded, slave of the us gov we have :mad:

We are far from slaves, we are taking their money and not doing what they want. Which is a shame, because doing what they want is the logical thing to do and in the interests of Pakistan, but our illiterate population will go berserk and burn their own country down if the terrorism situation is handled effectively.

We are far from slaves, we are taking their money and not doing what they want. Which is a shame, because doing what they want is the logical thing to do and in the interests of Pakistan, but our illiterate population will go berserk and burn their own country down if the terrorism situation is handled effectively.

brightside :

You must be at the front of the Queue when the Lord was handing out "Sagacity"!

India and Pakistan need to Learn from Sri Lanka on effectively handling Terrorists and their hated Terrorism.

Meanwhile here is an Article Highlighting the Human and Natural Resources of Pakistan. Like India (we hope it will one day) Pakistan also needs to chanalize its own Human and Natural Resources. Both Countries do not need to go around with a "Begging Bowl".

Read on :

What the Friends of Pakistan should be buying (http://www.thenews.com.pk/daily_detail.asp?id=172287)

Mosharraf Zaidi

Having asked for $30 billion so that it can get its act together, Pakistan should prepare itself for good news. It is not going to get $30 billion. It will get somewhat of a fraction of that money. This is the best news Pakistan could ask for.

If countries could be fixed with bailouts, Israel would be the safest country in the world. As the recipient of more money than any other country, and indeed more than many countries put together, Israel's problems should have been sorted out by now. Things are far from sorted in Israel. Its biggest problem in 1945 is its biggest problem today. Palestinians don't like Israel. All the money in the world cannot buy you a solution to that problem.

Pakistan too, like Israel, is saddled with an existential problem that cannot be solved with money. In fact, just like in Israel, the sustained injections of petty cash into this country, and particularly its armed forces, have caused a mutilation of incentives that has in fact perpetuated Pakistan's most deep-rooted problems. Pakistan does not need a Marshall Plan. It needs to marshal its resources to solve its problems itself.

Pakistan's lack of preparedness to do so is manifest in the two most popular items on Pakistan's wish list -- a new social protection instrument called the Benazir Income Support Programme, and the new alternative police force, or counter-terror force.

There is nothing wrong with wanting to have cash transfers to support poor families across the country. It is even better that parliament or the cabinet should want to name such social protection instruments in the memory of Shaheed Mohtarma Benazir Bhutto. There are few better ways to remember those that have passed away than through the gift of giving.

Perhaps more importantly, who could argue against the need for improved security services in Pakistan? Terrorists have been able to exert their will in attacking major symbols of the state right across the country, killing scores of people, and bleeding the country of its most important asset -- its confidence. An effective and robust counter-terror force is not a luxury, it is an inalienable right of the people in the current context of Pakistan's internal security situation.

On the face of it then, it seems Pakistan is perfectly right to go to Tokyo and expect its friends to help it in the areas that it needs help in. There is of course one major issue that such an assumption ignores. Pakistan already has a plethora of social protection instruments. Pakistan already has a police force at the national and provincial level.

Why does Pakistan need new instruments to fulfil the functions of already existing ones?

The answer, for anyone, that has spent any time at all working with the public sector in this country, is easy. The existing systems don't work. The social protection instruments, such as the Zakaat Fund, or the Pakistan Bait-ul-Maal Fund are so deeply dysfunctional and political that they are not seen to present viable options to extend support to poor families during trying economic times.

The existing police set-up, already shaken and stirred by the Police Order 2002 and the various amendments to it, and further convoluted by an uncertain decentralisation process, is also deeply dysfunctional. The police's ability to investigate crimes and to address the key law and order challenges in the 21st century are open to all kinds of questions.

So with Zakaat and Bait-ul-Maal in disrepute, and with the existing police structures incapable of dealing with the challenges of terror, Pakistan has gone to its friends and asked for money to begin new structures, new systems and new mechanisms to address relatively old problems.

A good friend would not hand the money over. It would ask Pakistan why it doesn't fix the existing systems instead of starting new ones.

However, you can only solve problems and fix broken things if and when you really want to. The problems faced by the police system are rooted in the same issues that plague the spectrum of state functions. Some of these are structural, such as salaries, the security of tenure at the officer level, the relative share of the central Police Service of Pakistan (PSP) in the provinces, the relationship between a district top cop, and the district's top bureaucrat from an administration perspective, and the relationship between cops and executives (or elected officials).

Other issues are semantic. No one likes to be treated like dirt. An officer of the NYPD is treated like a hero unless he or she is absolutely abhorrent in their behaviour toward citizens. This is a well-earned respect, the New York City police having been at the forefront of rescue effort post-9/11 and at the cutting edge of protecting the life and property of New Yorkers since then. How many times do policemen get a smile from the average Pakistani citizen for putting their life at risk in Pakistan? The ministry of information can hire dozens of expensive consultants to work on the images of politicians, but it has no strategic communications plan to work on the positioning and stature of a beat cop that's braving the threat of death to protect Pakistanis.

The issues in the Zakaat Fund and the Baitul Maal Fund are even more complicated. And why wouldn't they be? They are instruments to distribute cash. No venture could be more fraught with risk. Yet instead of getting into the nitty-gritty, Pakistan's most able economists have been told, hands-off the Zakaat and Baitul Maal! Please construct new instruments to do the same things.

If the government of Pakistan does not have the gumption to undertake reform, it cannot survive. And this gumption has to be a lot more resolute than what it has demonstrated to be so far, in its pursuit of reform in areas such as the judiciary, and the supremacy of parliament as the ultimate arbiter of resource allocation and the exercise of state power. The short version is simple. If the government pursues reform the way it has pursued to the actualisation of the Charter of Democracy, then neither democracy, nor this country can have a very bright future.

Public policy hacks are taught at a very early stage in their careers that one of the most overwhelming incentives for transformational reform is what is called the compulsion of the burning platform. Pakistan not only stumps many analysts, it also fundamentally challenges long-standing political, economic and social theory. The platform has been burning for decades. There are fiscal, operational and semantic time bombs buried in government at all three tiers -- federal, provincial and district. There is a mass upheaval of talent out of government at the officer level. There is despondency and desperation outside the officer class. There is the handcuffing and paralysis of elected officials in terms of their ability to effect change.

In this context, handing more money to Pakistan is not the act of a friend. Aid to Pakistan must be conditional. It is simply that those conditions must be about change in Pakistan, rather than change on and beyond Pakistan's borders.

The writer is an independent political economist. www.mosharrafzaidi.com

Cheers:cheers:

We are far from slaves, we are taking their money and not doing what they want. Which is a shame, because doing what they want is the logical thing to do and in the interests of Pakistan, but our illiterate population will go berserk and burn their own country down if the terrorism situation is handled effectively.

Yeah is that why we lost 35b?
The US only have given us 10b to fight their war in the past couple of years.

We are far from slaves, we are taking their money and not doing what they want. Which is a shame, because doing what they want is the logical thing to do and in the interests of Pakistan, but our illiterate population will go berserk and burn their own country down if the terrorism situation is handled effectively.

But instead of giving us money and thats it they should train our soldiers to fight terrorists.

brightside :

You must be at the front of the Queue when the Lord was handing out "Sagacity"!

Thank you.

India and Pakistan need to Learn from Sri Lanka on effectively handling Terrorists and their hated Terrorism.

I agree. The Lankans haven't stopped their aggressive push to eliminate the terrorists despite protests around the world.

BTW, excellent article.

Yeah is that why we lost 35b?
The US only have given us 10b to fight their war in the past couple of years.

hahaha 35 billion. We won't need to spend that much money even if we had a war with India. The monetary costs/benefits of the last few years of conflict cannot be accurately ascertained.

But instead of giving us money and thats it they should train our soldiers to fight terrorists.

They do train the Frontier Corps, they sold Stryker APCs (or something similar, don't remember exactly if they were strykers or other version) to us, they sold F-16s to Pakistan. The US wants to see the end of the Taliban in Pakistan, and I do too. The mistake that people in Pakistan make is that they think these bearded monsters can be reasoned with or convinced to give up violence.

Remittances increase by 23pc in March (http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/business/remittances-increase-by-23pc-in-march)
By Our Staff Reporter
Tuesday, 14 Apr, 2009 | 02:11 AM PST

KARACHI, April 13: Overseas Pakistanis continued to increase their share in the inflow of foreign exchange as they remitted 23 per cent more in March which was a record increase.

Overall remittances during the nine months also jumped by over 19 per cent compared to the corresponding period of the previous year.

The State Bank on Monday reported that overseas workers sent the highest-ever amount of $739.43 million as remittances in March 2009, surpassing the previous record of $673.50 million received in December 2008.

It said the amount of $739.43 million received in March 2009 showed an increase of $137.22 million or 22.79 per cent as compared to $602.21 million received in March 2008.

Overall inflow in the first nine months (July-March 2009) of current 2008-09 fiscal year remained at $5,658.06 million as against $4,728.37 million during the same period of the last fiscal year, showing an increase of $929.69 million or 19.66 per cent.

Last week, the State Bank in a meeting with the Minister for Overseas Pakistanis, Farooq Sattar, decided to devise a new mechanism to improve the volume of remittances. The mechanism will be formulated with the help of all stakeholders, including overseas Pakistanis.

The minister urged commercial banks and other stakeholders to improve their delivery system, and said there can be a two-fold increase in remittances if proper strategy is adopted.

The SBP said the monthly average of remittances in July 2008 to March 2009 comes to $628.67 million, up $103.30 million or 19.66 per cent while comparing with the same period last year.

The amount of $5,658.06 million includes $0.45 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

The highest amount was received from the US during the nine months which reached $1.291 billion. It was lower than the previous year’s figure of $1.312 billion.

The other two higher senders of dollars were United Arab Emirates and Saudi Arabia as they sent $1.210 billion and $1.113 billion, respectively.

^^ and we still begg like we don't hav any shit money. i seriously think we should scrap all these big politicians and put them in a sinking ship. i bet ppl of Pakistan can menage thier country a lot better than these flesh eaters and servents of west. we only need to utalize our remittances and cut our budget and spend little but save more and use our resources, but our government finds the solutions by expanding the cabinet from 30 to 100 asses.

During 2008-2011: external debt to reach 32.5 percent of GDP: IMF (http://brecorder.com/index.php?id=912401&currPageNo=3&query=&search=&term=&supDate=)

ASMA RAZAQ/ZAFAR BHUTTA

ISLAMABAD (April 15 2009): The International Monetary Fund (IMF) has projected the external debt stock of Pakistan to rise, temporarily, to around 32.5 percent of gross domestic product (GDP) during 2008-2011 due to significant increase in external financing from official creditors, including the Fund itself, to help Pakistan with recent balance of payments pressure.

It has been stated by IMF in a report titled 'Pakistan: 2009 Article 1V consultation and First Review under the stand by agreement-Staff Report', released on Tuesday. Combined shocks to growth, current account, and depreciation could vault the end-period debt stock to around 45 percent of GDP, significantly higher than under the baseline scenario.

According to IMF, the debt ratio of Pakistan is projected to rise, temporarily, due to significant increase in external financing from official creditors (including the Fund) to help Pakistan with the recent balance of payments pressure. The debt stock would be around 32.5 percent of GDP during 2008-2011, and then gradually decline to 27.5 percent of GDP by 2013-14.

Pakistan's external debt burden has been relatively moderate in recent years as a result of successive debt relief undertaken in the late 1990s and early 2000s. At the end of financial year 2007-08, external debt stock stood at around 26.5 percent of GDP and debt service was about 15 percent of exports of goods and services. Most of its debt was public sector debt owed largely to official creditors, and there were limited private sector debt.

The debt service burden would increase, but remain manageable, during the projection period. Debt service as a ratio of exports of goods and receipts are projected to increase to 20 percent under the baseline scenario. This increase is sizeable but debt service burden will decline markedly following repurchase of outstanding Fund credits.

The relatively benign debt outlook under the baseline scenario is subject to serious downside risks. They include risks from higher non-interest current account deficit, lower growth, higher depreciation, higher interest rates, as well as lower FDI flows. The standard bound tests show that debt ratios are sensitive to shocks to higher current account deficits, large depreciation of exchange rate, and lower FDI inflows given the large financing needs.

The Fund said, for example, if non-interest current account deficits are higher by half of the ten-year standard deviation, the debt as a ratio to GDP would rise sharply and be over 10 percentage points higher than under the baseline scenario.

Pakistan's public sector debt burden declined through 2006/07, but has been rising since then, reflecting the expansionary fiscal stance. At the end of fiscal year 2007-08, the public sector debt stock stood at 57.4 percent of GDP, with domestic public debt 31.2 percent of GDP slightly exceeding external public debt 26.2 percent of GDP.

Interest payments 4.7 percent of GDP are a significant burden for the budget, accounting for 32.6 percent of total revenue excluding grants and 26.3 percent of current expenditures. Interest payments on domestic debt accounted for only 12 percent of total interest expenditure, partially reflecting that official creditors account for the bulk of total external debt.

The public debt ratio is projected to decline gradually, reflecting fiscal consolidation and lower interest rates in line with macroeconomic stabilisation. The stock of external public debt will increase temporarily in 2008-09 owing to external financing from official creditors, including the Fund, to address Pakistan's recent balance of payments pressure.

The total stock of public debt is projected to decline gradually to 47.5 percent of GDP by 2013-14. The burden of interest payments on the budget would be halved. The ratio of interest payments to total revenue excluding grants would decline from 31 percent in 2008-09 to 14 percent in 2013-14, despite an increase in interest expenditure on external public debt by about 65 percent in dollar terms.

The standard bound tests show that risks from shocks resulting from higher interest rates or lower growth are moderate, as they would slow down rather than reverse the medium-term decline in the public debt ratio. However, a primary balance shock as well as 30 percent devaluation and a contingent liabilities shock would lead to a perceptible increase in the public debt ratio.

Copyright Business Recorder, 2009

Damn!!

Copying it over


Edit: We read it the first time, thank you.

Argh the value of the pakistani rupee gone down!

Friday, April 17, 2009

TOKYO: Pakistan’s President Asif Ali Zardari, visiting Tokyo for a major aid conference, Thursday sought to drum up Japanese investment for his poverty-stricken country. Zardari told Japan’s Trade Minister Toshihiro Nikai that Pakistan plans to set up ‘a special Japanese economic zone’ near the southern port city of Karachi, a Japanese trade ministry official told reporters after the meeting.

Pakistan has already set up a similar zone for Chinese companies in a suburb of the city of Lahore, said the official, Yoshihiro Sekine.

Zardari wrote in Thursday’s Japan Times daily he was visiting Tokyo not only for the Pakistan aid conference Friday but also ‘to encourage entrepreneurs from the world’s second-largest economy to invest in Pakistan’.

He said, “Japanese investment will help us in reviving the economy and fighting violent extremism and terrorism but also enable Japanese entrepreneurs to benefit from the liberal pro-investor policies adopted by our government.”

The Pakistani president also said a business mission from the South Asian country would visit Japan in late May, according to the official. Zardari arrived in Tokyo late Wednesday to attend Friday’s donors meet, which aims to raise $4 billion to $6 billion to help stabilise his country, seen as a frontline state in the battle against Islamic militancy.

http://www.dailytimes.com.pk/default.asp?page=2009%5C04%5C17%5Cstory_17-4-2009_pg5_10

Argh the value of the pakistani rupee gone down!

How much is a dollar now? It was hovering near 82 the last time I checked :ohno:

80.5

(hint: just put usd to pkr in google)

Shit man, i thought it was still at 70!

I love how all the democracy crazy people have disappeared...

Marshall Plan-style aid drive needed for Pakistan : Zardari (http://www.dailytimes.com.pk/default.asp?page=2009/04/17/story_17-4-2009_pg1_3)

* President will present a nine-point plan to donors
* Says Pakistan alone cannot bear burden of war on terror
* Terrorism a regional issue that needs to be addressed at regional level

TOKYO : President Asif Ali Zardari on Thursday called for a major aid drive like the Marshall Plan to fight poverty and militancy in Pakistan, writing in a newspaper on the eve of a major meeting of donors.

Zardari was in Tokyo for the aid conference on Friday, hosted by the World Bank and Japan, which is expected to raise up to six billion dollars to help stabilise what is seen as a frontline state in the battle against extremism.

Zardari stressed in a Japan Times article that his government was determined to fight Taliban and Al Qaeda but said it needed an aid and reconstruction programme similar to the US Marshall Plan for post-World War II Europe.

“We are determined to fight militancy to the end and will never permit the extremists to dictate their agenda on the people through guns and bullets,” he wrote in the English-language daily.

Since the September 11, 2001 attacks – which led the United States to invade Afghanistan and make Pakistan its regional strategic ally – Islamabad has spent about $35 billion to fight extremists, Zardari wrote.

“Pakistan alone cannot bear the huge social and economic burden of this war,” the president wrote. “Clearly we need massive international assistance.

“Pakistan needs a sort of Marshall Plan to address the issues raised in the fight against militancy. This is critical because regional peace and security, and by implication international peace, depends on how well we defeat the militants.”

Zardari wrote that “for historical reasons, particularly after the tragic events of 9/11, some areas of Pakistan’s tribal regions have been catapulted into the throes of militancy and terrorism”.

“But the problem is not of Pakistan alone. It is a regional issue that needs to be addressed at the regional level.”

Zardari said Pakistan would present a nine-point plan to donors that covers fiscal stability, poverty alleviation, agriculture, industry and trade, training, energy, public-private partnerships, money markets and administrative reforms.

Economists say up to 40 percent of Pakistan’s 160 million people live on one dollar a day or less. agencies

Cheers:cheers:

FoDP pledge $5.28 bn to help stabilise Pakistan : FM (http://www.thenews.com.pk/updates.asp?id=75030)

KARACHI : Foreign Minister Makhdoom Shah Mehmood Qureshi said on Friday that Friends of Pakistan (FoDP) have pledged up to 5.28 bn dollars to help stabilise Pakistan in Tokyo ministerial meeting.

Talking to Geo news, the foreign minister thanked all donor countries who extended their support to Pakistan to meet country’s economic challenges and effectively address the issue of terrorism. Qureshi also thanked the government of Japan in organising the donors’ conference.

He said Iranian foreign minister announced to launch Iran-Pakistan gas pipeline project and promised 330 million dollars which would help Pakistan meet its energy requirements. Qureshi said the donors pledged unconditional economic support for Pakistan.

To a question, the foreign minister said that Pakistan would get the pledged amount within two years. He said the date of new FoDP would be announced after consultations with the Turkish foreign minister.

Qureshi said that Pakistan played a vitally important role in efforts of the international community to counter terrorism and extremism.

Cheers:cheers:

What's the D for?

80.5

(hint: just put usd to pkr in google)

Isn't that the interbank rate? The money exchange people give you a dollar at 81.3 (read the daily exchange rate table in DAWN today).

I've been noticing it going up paisa by paisa.

What's the D for?

Developing?

I love how all the democracy crazy people have disappeared...

:| Don't start this again

You might like Pakistan being ranked in the same league as Burundi, but I want Pakistan to be a respected country and that can only happen when we are a functioning democracy where tinpot generals don't take over whenever the hell they feel like. Thank God General Kiyani is a smart man and doesn't listen to fools like PakBoy.

What's the D for?
Friends of Democratic Pakistan

Isn't that the interbank rate? The money exchange people give you a dollar at 81.3 (read the daily exchange rate table in DAWN today).

I've been noticing it going up paisa by paisa.



Developing?



:| Don't start this again

You might like Pakistan being ranked in the same league as Burundi, but I want Pakistan to be a respected country and that can only happen when we are a functioning democracy where tinpot generals don't take over whenever the hell they feel like. Thank God General Kiyani is a smart man and doesn't listen to fools like PakBoy.
I'm not sure. Waht I do know is taht if the $ to Rs rate is around 80, it's around 76 or so on the ticker in Citibank. I'm assuming that's the interbank rate in Citibank. I once asked why it was so low and what it was, but don't remember now.

Its 81.3 Rupees if you want to buy a dollar at the exchange company or want to send money to the US. I just checked again, just read the back of the business page of dawn. They give a separate interbank exchange rate which is always lower than the open market exchange rate.

Grr its dropping FAST!

Why was my post deleted?

welcome to the huge fan club [welcome sain welcome] :lol:

http://joongangdaily.joins.com/_data/photo/2009/04/18105815.jpg

April 18, 2009


The surge in Korea’s junior stock market has been so substantial in recent weeks that it’s had some concerned it will overshoot its bounds. A survey by a local brokerage released yesterday justified the concern.

In the report, Woori Investment and Securities said that the Kosdaq’s leap from its 2008 low was sharper than those of the other markets in the survey.

Woori surveyed 60 equity indexes in 56 countries.

The Kosdaq jumped as much as 92.3 percent from its 2008 low.

Hong Kong’s Hang Seng index came in second at 86.5 percent, followed by the markets in Peru at 70.8 percent, Pakistan at 62.1 percent and Russia at 61.8 percent.

Korea’s benchmark Kospi came in 13th, with a 42.0 percent increase.

The tech-heavy Kosdaq also took the top spot in terms of recovery rate, which measures how much a stock index regained from a 2007 high to a 2008 low.

As of Wednesday, the Kosdaq had regained 42.5 percent of what it lost, the biggest gain among the markets surveyed. The Kospi ranked fifth at 35.0 percent.

This is a significant performance for the Kosdaq given that it is not among the top 10 countries hardest hit by the financial crisis.

The Kosdaq lost 68.46 percent, falling from 828.20 points on July 12, 2007, to 261.19 points on Oct. 27, 2008. Seventeen other markets were even bigger losers, according to Woori. The Kospi was 51st on the list.

But doubts remain about whether the Kosdaq can keep its numbers up. It fell 2.7 percent yesterday, extending its losing streak for a third day.

“[The Kosdaq] tends to move on factors other than market fundamentals, and it’s unlikely to rise again so quickly,” said Lee Jae-man, an analyst at Tong Yang Securities.

http://joongangdaily.joins.com/article/view.asp?aid=2903734

ISLAMABAD: Government has finalised a $3.11 billion 9-year investment plan for reduction in cost of doing business and to enhance competitiveness of the economy of the country, official sources told Daily Times on Wednesday.

To ensure required financing for the projects included in this plan the government has decided to it to place before the Friends of Democratic Pakistan as well donors at Tokyo meeting scheduled on April 17.

The investment plan seeks to upgrade Pakistan’s highways to neighboring countries with an estimated investment of $975 million, Railways net work expansion to neighboring countries with an estimated investment of $1.780 billion and up-gradation of ports and shipping as well as Pakistan National Shipping Corporation with an investment of $355 million, the official added.

The details of the plan available with Daily Times are

Roads: The plans seek to invest $125 million in two years on Lawari Rail Tunnel. To link Gawadar with China and Afghanistan, the investment required is estimated at $594 million for the next five years. Similarly, up gradation of Kara Kurrum Highway from Mansehra to Sazin some 258 kilometers has been estimated with an investment of $256 million in next 7 years.

Road sector plans seeks an investment of $212 million in first year, $148 million in second year, $143 million in third year, $225 million in fourth year, $216 million in fifth, $16 million in sixth and $15 million in seventh year.

Railways: This plan seeks up gradation of Quetta-Koh-I-Taftan section to link rail net worth with Iran with an estimated cost of 438 million in next four years. A new rail link for connecting Gawadar Port with Mastung and Quetta in 9 years time frame has been finalized with an estimated cost of $1.342 billion.

Ports and Shipping: This plan seeks to support for private sector to make investment in shipping sector with $100 million, developing capacity for capital and maintenance dredging (upgrading port handling capacity) with estimated cost of $50 million and $50 million for Pakistan National Shipping Corporation. This plan also seeks to invest $155 million in mineral development.

Reducing the cost of doing business: Improvement and modernisation of the transport system is important to Pakistan’s economy and its competitiveness. Through infrastructure improvements, including transport, the country aims to greatly reduce the cost of doing business. Transport contributes about 10 percent of GDP. Road transport accounts for 90 percent of national passenger traffic and 95 percent of freight traffic.

Pakistan has about 5.0 million vehicles on the roads, growing at about 8 percent annually. This includes about 250,000 commercial vehicles. The road transport industry is deregulated and predominantly in the private sector. Pakistan’s road traffic has grown at an average annual rate of 14.1percent during the twenty-year period between 1985 and 2005 (from 70,000 vehicle trips/day in 1985 to 277,000 vehicle trips/day in 2005). Pakistan’s inland freight and passenger traffic has grown at an average annual rate of 10.6 percent and 4.4 percent respectively during the ten-year period between 1991 and 2001. However, Pakistan Railways’ freight traffic has declined (by 48 percent from 11.8 million tons in 1985 to 6.1 million tons in 2005) and passenger traffic stagnated during this period. The country’s truck fleet mostly comprises obsolete, underpowered, and high emission vehicles. Often trucks are overloaded. Their speeds are consequently slow, ranging between 20 to 25 kph compared to 80-90 kph in Europe, and journeys take three times longer than in Europe.

Pakistan has a total road network of 260,000 km of which about 60 percent is paved. The road density is 0.32 Km/Sq. Km. This network has grown at about 4.2 percent annually over the past decade. The National Highway Authority (NHA) under the Ministry of Communications (MOC) is responsible for approximately 11,500 km National Highway and Motorway system (4 percent of the total) which carries 75 to 80 percent of Pakistan’s total commercial inter-city traffic.

The National Highway Authority (NHA) needs to spend about Rs.5.0 billion annually to simply conserve the network in its present condition. Over the past decade, NHA’s maintenance spending averaged less than 6 percent of total expenditures and covered less than 25 percent of stable network needs. NHA has depended almost exclusively on transfers from the government’s recurrent budget to finance its road maintenance expenditures. This has not worked, since these transfers have been inadequate.

Two major ports, Port Karachi and Port Qasim, handle 95 percent of all international trade, and 14 dry ports cater to high value external trade. A few oil pipelines – about 2,100 km in length – have a yearly pumping capacity of 6.0 million tons. Container dwell times – 11 days on average – are four times those in developed countries, and three times the average in East Asia. Of this, customs clearance alone takes 4-5 days as compared to 1.25 hours in Singapore. Port entry costs are 5-9 times more than some others in the region – vessel call charges in Pakistan are $30,000, in Jebel Ali they are $6,700, and in Salalah, Oman, they are $3,900. In addition, the ports’ limited draught – at 9-12 meters – keeps the latest and most efficient ships from calling. Redundant dock labor costs trade $15-20/TEU.

Desired end-state: The desired end-state calls for rapidly reducing transport times and improving the sector’s quality and efficiency. This applies to rail, road and the ports.

In the rail sub sector, government’s priority is to improve the quality of freight services, rapidly improving delivery times, reliability and tracking information. Presently, PR takes 21-28 days to deliver upcountry at a distance of 1800 km, which is 4 to 7 times slower than in China and the US. Freight rates in Pakistan, at 1-2 cents/ton-km, offer no real advantage over road transport which costs the same. In contrast, China rail is 2-3 times cheaper than road. As a result, the railways have a very low and stagnant market share, carrying less than 5 percent of freight and 10 percent of passenger traffic.


http://www.dailytimes.com.pk/default.asp?page=2009%5C04%5C16%5Cstory_16-4-2009_pg5_5

ISLAMABAD: Government has finalised a $3.11 billion 9-year investment plan for reduction in cost of doing business and to enhance competitiveness of the economy of the country, official sources told Daily Times on Wednesday.

To ensure required financing for the projects included in this plan the government has decided to it to place before the Friends of Democratic Pakistan as well donors at Tokyo meeting scheduled on April 17.

The investment plan seeks to upgrade Pakistan’s highways to neighboring countries with an estimated investment of $975 million, Railways net work expansion to neighboring countries with an estimated investment of $1.780 billion and up-gradation of ports and shipping as well as Pakistan National Shipping Corporation with an investment of $355 million, the official added.

The details of the plan available with Daily Times are

Roads: The plans seek to invest $125 million in two years on Lawari Rail Tunnel. To link Gawadar with China and Afghanistan, the investment required is estimated at $594 million for the next five years. Similarly, up gradation of Kara Kurrum Highway from Mansehra to Sazin some 258 kilometers has been estimated with an investment of $256 million in next 7 years.

Road sector plans seeks an investment of $212 million in first year, $148 million in second year, $143 million in third year, $225 million in fourth year, $216 million in fifth, $16 million in sixth and $15 million in seventh year.

Railways: This plan seeks up gradation of Quetta-Koh-I-Taftan section to link rail net worth with Iran with an estimated cost of 438 million in next four years. A new rail link for connecting Gawadar Port with Mastung and Quetta in 9 years time frame has been finalized with an estimated cost of $1.342 billion.

Ports and Shipping: This plan seeks to support for private sector to make investment in shipping sector with $100 million, developing capacity for capital and maintenance dredging (upgrading port handling capacity) with estimated cost of $50 million and $50 million for Pakistan National Shipping Corporation. This plan also seeks to invest $155 million in mineral development.

Reducing the cost of doing business: Improvement and modernisation of the transport system is important to Pakistan’s economy and its competitiveness. Through infrastructure improvements, including transport, the country aims to greatly reduce the cost of doing business. Transport contributes about 10 percent of GDP. Road transport accounts for 90 percent of national passenger traffic and 95 percent of freight traffic.

Pakistan has about 5.0 million vehicles on the roads, growing at about 8 percent annually. This includes about 250,000 commercial vehicles. The road transport industry is deregulated and predominantly in the private sector. Pakistan’s road traffic has grown at an average annual rate of 14.1percent during the twenty-year period between 1985 and 2005 (from 70,000 vehicle trips/day in 1985 to 277,000 vehicle trips/day in 2005). Pakistan’s inland freight and passenger traffic has grown at an average annual rate of 10.6 percent and 4.4 percent respectively during the ten-year period between 1991 and 2001. However, Pakistan Railways’ freight traffic has declined (by 48 percent from 11.8 million tons in 1985 to 6.1 million tons in 2005) and passenger traffic stagnated during this period. The country’s truck fleet mostly comprises obsolete, underpowered, and high emission vehicles. Often trucks are overloaded. Their speeds are consequently slow, ranging between 20 to 25 kph compared to 80-90 kph in Europe, and journeys take three times longer than in Europe.

Pakistan has a total road network of 260,000 km of which about 60 percent is paved. The road density is 0.32 Km/Sq. Km. This network has grown at about 4.2 percent annually over the past decade. The National Highway Authority (NHA) under the Ministry of Communications (MOC) is responsible for approximately 11,500 km National Highway and Motorway system (4 percent of the total) which carries 75 to 80 percent of Pakistan’s total commercial inter-city traffic.

The National Highway Authority (NHA) needs to spend about Rs.5.0 billion annually to simply conserve the network in its present condition. Over the past decade, NHA’s maintenance spending averaged less than 6 percent of total expenditures and covered less than 25 percent of stable network needs. NHA has depended almost exclusively on transfers from the government’s recurrent budget to finance its road maintenance expenditures. This has not worked, since these transfers have been inadequate.

Two major ports, Port Karachi and Port Qasim, handle 95 percent of all international trade, and 14 dry ports cater to high value external trade. A few oil pipelines – about 2,100 km in length – have a yearly pumping capacity of 6.0 million tons. Container dwell times – 11 days on average – are four times those in developed countries, and three times the average in East Asia. Of this, customs clearance alone takes 4-5 days as compared to 1.25 hours in Singapore. Port entry costs are 5-9 times more than some others in the region – vessel call charges in Pakistan are $30,000, in Jebel Ali they are $6,700, and in Salalah, Oman, they are $3,900. In addition, the ports’ limited draught – at 9-12 meters – keeps the latest and most efficient ships from calling. Redundant dock labor costs trade $15-20/TEU.

Desired end-state: The desired end-state calls for rapidly reducing transport times and improving the sector’s quality and efficiency. This applies to rail, road and the ports.

In the rail sub sector, government’s priority is to improve the quality of freight services, rapidly improving delivery times, reliability and tracking information. Presently, PR takes 21-28 days to deliver upcountry at a distance of 1800 km, which is 4 to 7 times slower than in China and the US. Freight rates in Pakistan, at 1-2 cents/ton-km, offer no real advantage over road transport which costs the same. In contrast, China rail is 2-3 times cheaper than road. As a result, the railways have a very low and stagnant market share, carrying less than 5 percent of freight and 10 percent of passenger traffic.


http://www.dailytimes.com.pk/default.asp?page=2009%5C04%5C16%5Cstory_16-4-2009_pg5_5

singaporean Ji :

Following from the Pakistani Economic Survey 2007-2008 :

Chapter 14 - TRANSPORT AND COMMUNICATIONS (http://www.finance.gov.pk/admin/images/survey/chapters/14-Transport%20final08.pdf)

As per TABLE 13.4 : MOTOR VEHICLES ON ROAD the Total Number of Motor Vehicles is a “Paltry” Figure, basis (Jul-Mar) 2007-08, Estimated to be 8,680,000

So how come the “Grand” Figure of 5 Million is being quoted in this report?

Cheers:cheers:

Pakistan doing well on economic front : WB (http://www.aaj.tv/news/Business/134395_detail.html)

ISLAMABAD ( 2009-04-21 18:05:00 ) : The World Bank has stated that the scale of the donor pledges made on April 17 in Japan was a manifestation of regard for the tough measures the economic team led by Shaukat Tarin has taken in Pakistan in the past few months.

The complimentary message for the Pakistan government and Shaukat Tarin came from WB vice?president Isabel Guerrero at the end of Friends of Democratic Pakistan (FODP) conference co?hosted by Japan and IFI’s.

The message said the present government took robust stabilizing measures and entered into an International Monetary Fund Stand?By Arrangement on November last year which remains on track.

In a world crowded with problems, Pakistan won important aid commitments, it said.

“The international community rallied to support Pakistan’s economic program with more than US $ 5 billion in funding designed to meet its immediate needs and protect expenditures on safety net and human development initiatives critical for poor people.”

Through this difficult adjustment made all the harder by a global downturn Pakistan has done well to protect the poorest 25 percent of its citizens, said the WB vice?president for South Asia in the message.

The Government of Pakistan shared development plans at the conference and committed to tough measures that would sustain macroeconomic stability while rolling out expanded social safety nets and laying the foundation for accelerated growth.

Development partners supported new social safety net programmes being introduced by the government.

The World Bank is working with Pakistan to refine the targeting of these programmes to make sure support reaches the poorest citizens in a transparent manner, the message underlines.

The successful monitoring and evaluation of this programme was of particular concern to donors.

The Donors’ sideline evaluation of the government’s ongoing 9?point economic reforms agenda has lent credence to the scale of robust efforts Pakistan has undertaken in core economic areas like macro?economic stabilization, social protection, agri reforms, industrial competitiveness, Human Resource Development, integrated energy generation plan, capital market reforms, Public?Private Partnership and administrative reforms.

Redesigning the internal fiscal policies through various economic structures undertaken by Central Bank is part of the package of economic measures and monetary operations put in place by the government.

Cheers:cheers:

ISLAMABAD ( 2009-04-21 18:05:00 ) : The World Bank has stated that the scale of the donor pledges made on April 17 in Japan was a manifestation of regard for the tough measures the economic team led by Shaukat Tarin has taken in Pakistan in the past few months.


it seems to me the scale of the pledges indicates how pathetic the economic situation has become. who's this journalist that spins reality to glorify the ppp??

Pakistan Not ‘as Bleak’ as ING, Erste Hold Bonds

April 23 (Bloomberg) -- Some of the world’s biggest bond investors are sticking with Pakistan even as the government struggles to combat al-Qaeda and Taliban militants along the border with Afghanistan.

ING Groep NV, Erste Sparinvest KAG and HSBC Holdings Plc, which oversee more than $800 billion in assets, are maintaining holdings of Pakistan’s dollar bonds as almost $13 billion in assistance from the International Monetary Fund and aid pledges help the country stave off default. The nation’s bonds have returned 35 percent this year, the best performance in Asia among dollar debt indexes compiled by London-based HSBC.

“Broadly, we believe that it definitely doesn’t look as bleak for Pakistan,” said Joel Kim, who helps oversee $433 billion globally as head of Asian debt at ING Investment Management in Hong Kong. “They’ve passed the worst point. The IMF money has helped stabilize things.”

A $7.6 billion bailout from the Washington-based lender in November stabilized Pakistan’s currency after it plunged 22 percent last year and boosted foreign-exchange reserves to $7.8 billion on April 4 from $3.5 billion in October, according to data compiled by the central bank. The South Asian nation won promises this month for $5.3 billion in aid from more than 20 countries to help shore up its economy and combat al-Qaeda and Taliban militants.

Cost of Terrorism

Terrorism has cost Pakistan $35 billion in economic losses and damage to infrastructure, according to a statement given to reporters by President Asif Ali Zardari’s aide on April 17. More than 3,500 terrorist incidents (dunno what their definition is) have occurred since 2007, killing an average of 84 people per month this year, the aide said.

“The financial package for Pakistan in November should help the country muddle through, but the political risk in the country remains extremely high,” said Peter Marber, the New York-based head of emerging-market debt and currencies at HSBC Global Asset Management, which oversees $370 billion in funds worldwide. “We have maintained a market weighting. We have no plans to increase exposure.”

U.S. Secretary of State Hillary Clinton said yesterday that Pakistan’s government is “abdicating” to the Taliban and other extremists. The U.S. is developing performance measures for Pakistan that will be linked to American aid, Clinton told the House Foreign Affairs Committee.

Pakistan’s 6.875 percent dollar bond maturing in June 2017 yielded 18.62 percent yesterday, versus a record high of 26.30 percent on Nov. 3, 2008, according to data compiled by Bloomberg. The price has climbed to 52 cents on the dollar, from as low as 35 cents last year.

Political Concerns

Standard & Poor’s, which rates Pakistan’s foreign-currency debt CCC+ or seven levels below investment grade, said international investors will stay away because political concerns distract policy makers from fixing the government’s budget and current account deficits.

The IMF forecasts the economy will expand 2.5 percent in the 12 months ending June 30, the slowest pace in eight years, after growing at an average annual pace of 6.8 percent since 2002. Foreign investment fell to $5.19 billion in the year ending June 30, 2008, from a record $8.43 billion a year earlier, government data show.

The government aims to collect 1.25 trillion rupees ($15.5 billion) in taxes in the fiscal year, from 1.04 trillion rupees a year ago, to narrow the budget deficit to 4.3 percent of gross domestic product. Central bank Governor Salim Raza said Jan. 31 that meeting the tax collection target may be a challenge as economic growth slows.

“The fiscal and external positions have continued to deteriorate,” said Agost Benard, S&P’s Singapore-based associate director.

Investors Return

Pakistani business officials say the perception of political risk is overstated and international investors are starting to return.

“There is now very early signs of portfolio investment starting to come back,” Asad Umar, the president of Karachi- based Engro Chemical Pakistan Ltd., said in an interview yesterday in New York. “Pakistan is going to come out of it earlier than the rest of the globe.”

The Karachi stock index is up 27 percent this year, compared with a 12 percent gain in MSCI’s emerging-market stock index. The rupee, which declined 22 percent against the dollar last year, the second-worst performer in Asia, fell 1.8 percent this year.

“International portfolio investment has been returning,” U.S. Ambassador to Pakistan Anne Patterson said in an interview on Bloomberg TV yesterday. “The stock market is beginning to recover.”

Bond Risk

The extra yield investors demand to own Pakistan bonds has tumbled 7.35 percentage points to 14.87 percentage points after reaching a seven-year high on Dec. 19, according to JPMorgan Chase & Co. Still, the country’s bond risk remains high. Five- year credit default swaps based on Pakistan’s bonds show investors need to pay $2.2 million annually to protect $10 million of Pakistan’s debt for five years, the third-highest in the world, according to CMA Datavision.

“We’re’ still holding the dollar bonds,” said Anton Hauser, a fund manager who oversees the equivalent of $1.1 billion in emerging-market debt at Vienna-based Erste Sparinvest, including Pakistani bonds due in 2017. “We’re neutral on Pakistan. We expect that they will muddle through and they will not default on their bonds.”

http://www.bloomberg.com/apps/news?pid=20601091&sid=aashA6.CZwVY&refer=india

Pakistan's economy Full fear and credit

From The Economist print edition

Pakistan’s political instability brings macroeconomic calm

http://media.economist.com/images/20090425/CFN339.gif

PAKISTAN is one of the few countries in the world that enjoys more macroeconomic stability today than it did on September 14th, the day before the bankruptcy of Lehman Brothers turned the world upside down. In those prelapsarian days Pakistan’s currency was tumbling; its foreign-exchange reserves covered barely two months of imports; and the cost of insuring its sovereign debt against default was almost 1,000 basis points (10%). Worst of all, the IMF had landed in Islamabad.

In the months since, Pakistan’s government has in effect conceded the Swat valley, a picturesque tourist spot, to the Taliban. It has suffered savage terrorist attacks on a police academy and the visiting Sri Lankan cricket team. It has also handed the political initiative to its rivals in the opposition party. But despite all this turmoil, it has found some macroeconomic steel.

In April the IMF released the second tranche of the $7.6 billion loan it offered Pakistan in November. The government’s reserves were above target; its fiscal deficit was below; and its borrowing from the central bank was contained. Pakistan has also raised electricity tariffs and reduced energy subsidies, despite popular protests. Indeed, its levy on oil products has become a big contributor to the public coffers. Emboldened by the drop in inflation, on April 20th the new central-bank governor even cut interest rates for the first time in six years.

The worry is that Pakistan has achieved stability without growth. In other emerging markets, the new, crowd-pleasing IMF has advocated counter-cyclical policies to combat the ill effects of global contraction. But Pakistan has committed itself to narrowing its fiscal deficit to 562 billion rupees ($7 billion), or 4.3% of GDP, by June. This target was set in October before the full horror of the world economic crisis had become apparent. Given the subsequent slowdown, the government’s revenue aims seem aspirational rather than feasible.

The danger was that the government would meet its target by cutting infrastructure spending, thereby undermining the country’s growth prospects. But Pakistan has one invaluable asset that is not quoted on its balance-sheet. It scares the rest of the world. Thus on April 17th a group of 31 countries, called the Friends of Pakistan, met in Tokyo and offered an extra $5.3 billion of friendliness over the next two years. Though the government is precarious enough to arrest the world’s attention, it is still—just—credible enough to earn its financial backing.

http://www.economist.com/finance/displaystory.cfm?story_id=13528234

IMF further slashes Pakistan’s GDP growth forecast

http://www.dailytimes.com.pk/images/2009/04/24/20090424_14.jpg

By Sajid Chaudhry

ISLAMABAD: International Monetary Fund (IMF) has further slashed the GDP growth rate of Pakistan to 3.5 percent-which was 4 percent earlier-in next fiscal year 2009-10 owing to deepest post-World War II recession.

IMF in its April 2009 report World Economic Outlook 2009 titled Crisis and Recovery, has highlighted that Pakistan's real Gross Domestic Product (GDP) growth was recorded at 6 percent in last two years 2007 and 2008 and real GDP growth for 2009 would remain at projected level of 2.5 percent.

Earlier the IMF authorities had projected the Pakistan's real GDP to post a growth of 4 percent, however, in its latest report of April 2009, the authorities have further lowered the growth forecast to 3.5 percent for 2009-10.

World Economic Outlook 2009 projections relating to Current Account Balance have also been revised upwards keeping in view the internal as well as external factors has now projected that current account balance to remain at negative 4.9 percent in 2009-10 as against earlier projection of negative 4.3 percent.

The report states that current account balance of the country was recorded at negative 4.8 percent in 2007, negative 8.4 percent in 2008 and expectation is there that it would remain at negative 5.9 percent in current fiscal year 2008-09.

Trend in movement of consumer prices as projected in World Economic Outlook 2009 is similar to earlier projections according to which upward movement in consumer prices was recorded at 7.8 percent in 2007, 12 percent in 2008 and 20 percent in 2009. However, the report forecasts that movement in consumer prices to come down to 6 percent in 2009-10 as against 20 percent in current fiscal year 2008-09.

Outlook and Risks: The World Economic Outlook (WEO) projections assume that ?nancial market stabilisation will take longer than previously envisaged, even with strong efforts by policymakers.

The projections also assume that commodity prices remain close to current levels in 2009 and rise only modestly in 2010, consistent with forward market pricing. Even with determined policy actions, and anticipating a moderation in the rate of contraction from the second quarter onward, global activity is now projected to decline 1.3 percent in 2009, a substantial downward revision from the January WEO Update. This would represent by far the deepest post-World War II recession. The current outlook is exceptionally uncertain, with risks weighed to the downside.

The dominant concern is that policies will continue to be insufficient to arrest the negative feedback between deteriorating ?nancial conditions and weakening economies, particularly in the face of limited public support for policy action. Key transmission channels include rising corporate and household defaults that cause further falls in asset prices and greater losses across financial balance sheets, and new systemic events that further complicate the task of restoring credibility.

Furthermore, in a highly uncertain context, ?scal and monetary policies may fail to gain traction, since high rates of precautionary saving could lower ? scale multipliers, and steps to ease funding could fail to slow the pace of deleveraging. On the upside, however, bold policy implementation that is able to convince markets that financial strains are being dealt with decisively could revive con?dence and spending commitments.

http://www.dailytimes.com.pk/default.asp?page=2009\04\24\story_24-4-2009_pg5_1

But Pakistan has one invaluable asset that is not quoted on its balance-sheet. It scares the rest of the world.

This situation is just comically tragic.

Nice articles, Trappy.

PSM production capacity to be enhanced up to 5m tons : Wattoo (http://www.aaj.tv/news/Business/135037_detail.html)


LAHORE ( 2009-04-29 19:01:53 ) : Pakistan Steel Mills (PSM) annual production capacity would be enhanced from the existing 1.1 million tons to 5 million tons.

Federal Minister for Industries and Production, Mian Manzoor Ahmed Wattoo disclosed this in the 1st Iron and Steel Conference-2009, Problems and Prospects of I&S in Pakistan, organized by All Pakistan Steel Re-rolling Mills Association (APSRMA) at a local hotel on Wednesday.

The minister said that tenders would be published in the national press for the expansion of PSM and companies would be selected for the purpose purely on merit basis, adding that the overall annual steel production in Pakistan would increase from 4 million tons to 8 million tons.

Wattoo said that they had decided to evolve a mechanism to ensure transparency in all affairs of the PSM and its products' prices would be fixed in accordance with the international markets, while the PSM would have to seek permission from the I&P Ministry prior to making any change in prices.

The minister assured that there would be open auctioning of all the products of the PSM to avoid favouritism and corruption, besides streamlining the PSM steel distribution mechanism for private industrialists.

Wattoo said, though Pakistan is hit hard by terrorism, and Taliban are tarnishing its image abroad, the Pakistani industrialists are playing pivotal role in presenting its soft and bright image to the world by providing it the best industrial productions.
"I have recently visited an industrial fair in Germany and I am glad to see that around 41 Pakistani industrialists set up stalls there and many foreign companies have shown keen interest to trade Pakistan's industrial productions", he observed in this context.

Later talking to reporters, federal minister said the present elected and democratic government is striving hard to resolve all industrial problems such as power and gas shortage, reduction in mark-up rates, adding that in this connection, a comprehensive and effective strategy has been evolved in consultation with all stake-holders, including the industrialists.

"The strategy is now bearing fruit as the Prime Minister has recently inaugurated two windmill power plants", he observed and hoped that there would be no power load-shedding by December this year.

To a question, he said the new Industrial Policy would be announced within the next three months as consultations were under way with all the stake-holders, including the industrialists.

Responding to the association's grievances, the minister assured it of optimum support from the government side, asking the office-bearers to propose their representative for the PSM Board of Directors, adding that he would get the matter approved by the Prime Minister.

To another demand by the APSRMA, Wattoo said that he would arrange their (steel industrialists) meeting with Railways Minister to get resolved the problems of steel transportation, while the I&P Ministry's institutions- SMEDA, TUSDEC and PITAC, would extend cooperation for skill development of the steel industry's workforce.

The Minister also assured the APSRMA that effective measures would be put taken to ensure smooth supply of imported raw materials to the steel industry.

The Association Chairman Latif Chaudhry, Al-Tuwairqi Project Director Zaigham Adil Rizvi, National Consultant on Mines and Minerals Dr Sajjad Hussain, also addressed the opening session.

In the technical session, Pakistan Steel Mills HR Director Qaisar Saleem, People's Steel Mill MD Dr Muneer Ahmed and Dr Shahzad Alam from PCSIR laboratories highlighted various aspects and potential of the steel industry in Pakistan.

Cheers:cheers:

Steel policy to be finalised in 2 weeks (http://thenews.jang.com.pk/daily_detail.asp?id=175095)

Israr Khan

ISLAMABAD : Pakistan is all set to finalise a draft of long-term National Steel Policy in the next two weeks after consultation with provincial mining departments.

The policy aims to bridge supply-demand gap by achieving steel production of 15 million tonnes by 2020, The News has learnt. Pakistan has more than 1.42 billion tonnes of proven iron ore reserves. Of these, about 947 million tonnes were spread in Punjab (Sargodha and Kalabagh), North West Frontier Province (NWFP) (Nizampur and Hazara), Balochistan (Kalat and Chaghi), which contain 20 to 60 per cent iron. Kalabagh retains 450 million tonnes of iron ore reserves containing 30-35 per cent iron content.

The government is focusing on these sites and has planned to establish steel mills in these areas in collaboration with foreign and local investors, who may be provided incentives, well-placed official sources said.

Under this initiative, the private sector would be encouraged to invest in these areas. They would be provided special incentives like cut in duty or zero duty on imports, provision of land and other infrastructure facilities, sources said.

Setting up of mills at these specified areas would reduce the cost of production and help cater to steel requirements of the country, they said. The areas, where the government wants to produce steel, are Makerwal-Sho (Mianwali) having iron ore reserves of 706m tons, Chichali-Chughlan (Mianwali) 369m tons, DG Khan (56 million tons) and Chiniot 17m tons. These are located in Punjab. In Balochistan, Pachinkoh (Nokundi) has iron ore reserves of 45m tons, Chigendik (Nokundi) 5m tons, Chilghazi (Dalbandin) 2.47m tons and Dilband (Mastung, Kalat) 200m tons. Besides, in NWFP, Pezu (DI Khan-Bannu) bristles with reserves of 13 million tons and Damar Nisar (Chitral) three million tons.

Zaigham Adil Rizvi, Director (Projects) Tuwairqi Steel Mills Ltd (TSML), told The News: “It is a matter of our survival to use local iron ore, as import from Brazil, Australia and others was costly this year. TSML will need about two million tonnes of iron per annum.”

Under-construction TSML plant located at Bin Qasim Karachi is Pakistan’s first private sector integrated steel manufacturing project and Al Tuwairqi Holding has so far invested about $300m. Rizvi said that the group was aggressively planning to develop iron ore sites in Balochistan in order to reduce dependence on imports.

Experts believe that developing and using local iron ore for steel production could keep the sector protected of international price shocks, fear of reduced supplies, high sea freight, carrying costs and logistic problems. During fiscal year 2007-08, Pakistan’s annual steel requirement was about five million tons while domestically it produced 3.75 million tons. The reaming gap was catered through imports for which the national exchequer pay million of dollars.

Cheers:cheers:

ISLAMABAD: Pakistan’s continental shelf, or sea-water limits, will be extended from 200 to 350 nautical miles provided no nation objects within a week.

‘No country has challenged our claim for an additional 150 nautical miles into the sea,’ said the federal minister for Science and Technology, Azam Khan Swati, who had called a briefing on Wednesday evening to announce what he called an ‘historical conquest.’

After four years and surveys worth Rs500 million, the United Nations accepted Pakistan’s claim for extension of the continental shelf. Pakistan would have legal control over another 50, 000 square-kilometres into the Arabian Sea.

Pakistan’s mission to the United Nations in New York had filed a claim for extension in its continental shelf from 200 nautical miles to 350 nautical miles to United Nations Commission on the Limit of Continental Shelf (UNCLOS) on April 30.

The ministry of science and technology (MoST) was involved in the preparation of the claim for the last couple of years.

The National Institute of Oceanography (NIO), an autonomous organisation of this ministry, was entrusted with the task to prepare the claim in accordance with UN requirements.

The case was prepared and submitted to the Pakistan mission in New York last month. Under the UNCLOS, Pakistan already has an Exclusive Economic Zone extending up to 200 nautical miles.

The United Nations Convention on the Law of the Sea (UNCLOS) was adopted in 1982 and came into force in Nov 1994. Pakistan ratified the convention in Feb 1997.

The Convention entered into force for Pakistan on March 28, 1997. Although the government submitted its claim just two weeks before deadline, Science Minister Azam Khan Swati was all smiles when the announced the news.

‘It’s a historical conquest. The benefits will be limitless,’ he said. ‘We gain a substantial area of more than 50, 000 sq/km with another 150 nautical miles into the sea.’

Listing benefits, the minister claimed that the data acquired during the project would provide a reliable and firm database and foundation, essential for future marine research and exploration of living and non-living marine resources.

‘It will also provide a good basis for out scientists/technicians to further promote and develop the marine geological and geophysical research and survey capabilities. The project will contribute directly to the petroleum and mineral sector in general and to the offshore maritime industry/market,’ Azam Khan Swati said.

‘Elsewhere in the world, deepwater fan and deltaic systems are of great interest to oil exploration companies. After the survey we conducted, it is safe to say that Pakistan’s waters are rich in coal deposits and there is plenty of oil and gas,’ Azam Khan Swati said.

The minister said that as many as 29 countries have filed claim for extension and May 13, 2009 was last date for submission of claim. India has not filed claim for extension of its continental shelf so far, he added.

He said it was a historical moment that owing to timely efforts by the ministry and other stakeholders, Pakistan would succeed to extend its continental shelf.

The minister said that Pakistan has 200 nautical miles an Exclusive Economic Zone (EEZ) under the United Nations Convention on the Law of the Sea (UNCLOS) which now would be 350 nautical miles.

He said that substantial area of more than 50,000 square kilometres has been gained after extension of the continental shelf.

Azam Swati said that this would contribute directly to the petroleum and mineral sector in general and offshore maritime industry in particular.

He said this would also provide a reliable and firm database and foundation for future marine research and exploration of living and non-living resources.

The minister said that by analogy, elsewhere in the world, deepwater fan and deltaic systems were of great interest to oil exploration companies.

Oil and gas developments in sediment-rich margins were clear indicators of potential for the Indus Fan, he said.

The UNCLOS was adopted in 1982 and came into force on Nov 16, 1994. Pakistan ratified the convention on Feb 26, 1997.


http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/12-pakistans-sea-limits-set-to-be-extended--bi-08

Good news!
But one of the lines in that article has been repeated once. I don't know for what reason.

Definitely good news, good job by the government :yes:

yeah good work but i am really impreased by swati he is fit for his job.

^^why swati fit?

Minister Azam Khan Swati!

I know but how n why he is fit in this slot??

^^ cuz' he's doing his job honestly and unlike our other politicians who only use govt money and put the money in swiss accounts, saudi accounts and british accounts u know what i mean.

^^How can you be sure about him?

yes tell us???

^^ i know him cuz' the govt of Pakistan was looking for exploring oil on the sea for off shore drilling. they had to buy ship or machinary that explores the oil and gas and a company was selling them in 10 millions or so and this guy went to Egypt to hire an expert for feedback on the machinary. the guy told him that there is lots of steel and steel is cheap in Pakistan so the pice was way too high and therefore he choose a better machinary and saved Rs.50 million. thats why i like him and he is a real patriotic Pakistani as well.

thanks taseer.

its a pleasure.

Pakistan may seek additional $4.5 billion from IMF (http://www.dailytimes.com.pk/default.asp?page=2009%5C05%5C16%5Cstory_16-5-2009_pg5_5)

Sajid Chaudhry

ISLAMABAD : Pakistan would seek additional $4.5 billion Stand by Facility from International Monetary Fund (IMF) in June this year in case financial assistance from Friends of Democratic Pakistan (FoDP) is delayed.

Pakistan would receive $2.5 billion by end June 2009. World Bank and Asian Development Bank have sown willingness to finance mega dam projects with increase in annual lending volume for Pakistan. United States has also agreed to start Free Trade Agreement (FTA) negotiations along with finalizing Bilateral Investment Treaty (BIT).

FODP: Shaukat Tareen, Advisor to Prime Minister on Finance and revenues, in a media briefing after a month long foreign tour, termed Tokyo FODP Conference as success and informed that Pakistan has received encouraging response from FODP as against the expectations of $4 billion, $5.28 billion pledges were made in the Tokyo meeting. Explaining the composition of pledges, advisor informed that $600 million would be in the shape of grant and soft loans, $400 million as budget support and $4.3 billion as project financing. Apart from these said pledges, Britain, Norway and Switzerland are in a process of finalising increase in their annual aid for Pakistan and decision would be made soon.

He informed that FODP social sector financial assistance would be used for four interventions like cash support and poverty reduction, skill development, medical insurance for poor and job creation at tehsil level. Remaining assistance would be used for education and health sector development, he added.

IMF: Tareen informed the country achieved all the performance benchmarks set for the period under discussion. He informed that IMF has allowed Pakistan to increase its budget deficit from projected 3.4 percent to 4.3 percent. He said that Pakistan would seek additional loan from IMF on incase the assistance from FODP faced delay and if needed, Pakistan would ask for Stand by Facility that would be 300 percent higher against the allocated quota. IMF has also allowed Pakistan to use this additional loan for financing its initiatives like promotion of agriculture, manufacturing and infrastructure that are required to build sound base for economy.

The International Monetary Fund (IMF) would recommend the release of $840 million to Pakistan, the third tranche of a loan. “Therefore, in a board meeting in mid-June, they will recommend release of a tranche which amounts to about $840 million,” Tareen said.

WB: He informed that World Bank has agreed to enhance its lending under three year lending programme. We have asked World Bank to assist in development of agriculture sector and mega infrastructure projects like big dams and WB authorities have agreed to consider it. WB has also agreed to lend for construction of transmission line from Tajikistan via Afghanistan to Pakistan for import of 700MW power in first phase and low cost 3000MW hydel power in second phase.

Pak-Libya: During the President of Pakistan visit to Libya, both the countries have agreed to enter into Strategic Economic Partnership under which Libya has demanded manpower, help in infrastructure, banking sector and agriculture sector development. Pakistan has invited Libyan companies to invest in oil and gas sector of Pakistan. He said that Pak-Libya holding company would pursue cooperation in these areas for bilateral benefits.

He said that during US visit a remarkable achievement has been achieved and USTR has agreed to start bilateral Free Trade Agreement (FTA) process. We have demanded increase in area of Reconstruction Opportunity Zones (ROZs) with inclusion of Balochistan.

Tareen informed that Pakistan is to receive around $2.5 billion by end June 2009, IMF $840 million from IMF, $800 million from WB, $600 million from ADB, $23 million from IDB and $1 billion from US.

Responding to questions, Tareen informed that the government would not be able to run the country on Petroleum Development Levy (PDL) and the government would soon finalise a transparent mechanism of POL price fixation. He said that inflation might come down to single digit by October 2009 as against earlier projection of July 2009.

Budget 2009-10 : Tareen informed that during IMF talks four new sectors have been identified for expansion in tax base. However, he made it clear that only two new sectors would be taxed in the next fiscal year 2009-10. He said focus of the next budget would be on revenue generation for poverty reduction, promotion of agriculture, manufacturing, energy sector development and infrastructure development. “We don’t want to increase tax rates, our focus in to tax new sectors for increased revenue generation”.

Cheers:cheers:

ISLAMABAD: Pakistan has missed its revised GDP growth target by a slight margin as the economy grew 2.37 per cent in the current fiscal year 2008-09 against the target of 2.5 per cent, which had been agreed with the International Monetary Fund.

The National Accounts Committee (NAC) met here at P Block auditorium on Saturday to approve provisional economic figures, during which gross domestic product (GDP) growth for the last financial year 2007-08 was sharply revised downward by 1.7 per cent, for the first time in the last few decades. As a result, GDP went down to 4.1 per cent in accordance with final figures from earlier projection of 5.78 per cent in 2007-08.

By lowering the baseline, the government reached close to the growth target of 2.5 per cent agreed with the IMF under $7.6 billion Standby Arrangement (SBA) programme.

According to a working paper approved by the NAC, a copy of which is available with The News, provisional GDP estimates for 2008-09 stand at Rs5532.4 billion compared to the previous fiscal year’s Rs5404.5 billion, showing an increase of 2.37 per cent.

The contribution of industrial sector showed a negative growth of 2.6 per cent, while agriculture and services sector grew 4.7pc and 3.8pc respectively in the current fiscal year.

Per capita income achieved a slight growth of 0.97 per cent at constant factor in rupee terms, but its current level had not been calculated by the authorities concerned. Growth in electricity, gas and water supply was negative at 3.68 per cent in 2008-09. The country’s overall GDP grew by 6.81pc, 4.1pc and 2.37pc in 2006-07, 2007-08 and 2008-09 respectively.

Although, the agriculture sector rescued the country by achieving a growth of 4.7 per cent in the current fiscal year against revised final estimates of 1.08 per cent growth in last financial year, the government failed to achieve its wheat production target in 2008-09 which stood at 23.4 million tons against the target of 25 million tons.

The major crops in agriculture sector achieved a growth of 7.67 per cent in 2008-09 compared to negative growth of 6.4 per cent in 2007-08. Despite this, all major crops except rice missed their envisaged targets. Minor crops production declined to achieve a growth of 3.62 per cent in 2008-09 against 10.9 per cent in the previous fiscal.

The livestock and fishery sectors grew by 3.70pc and 2.33pc respectively in 2008-09, while forestry’s growth registered a negative growth of 15.67 per cent.

Industrial sector demonstrated negative growth of 2.57 per cent in ongoing fiscal year against a positive growth of 1.70 per cent in the last financial year. The mining and quarrying sector grew by 1.31pc, large scale manufacturing by negative 5.73pc, small scaling manufacturing by 7.51pc and slaughtering by 4.22pc in fiscal year 2008-09.

The construction industry witnessed a major decline registering a negative growth of 10.79 per cent in the outgoing fiscal year. The commodity producing sector’s growth was standing at 0.72 per cent in fiscal 2008-09.

The services sector’s growth stands at 3.82 per cent in FY2008-09. In services sector, transport, storage and communication sector grew by 2.88pc, wholesale and retail trade by 3.75pc, finance and insurance registered negative growth of 1.19pc, ownership and dwellings grew by 3.51pc, public administration & defense by 4.99pc and social, community and public services by 7.30pc in 2008-09.

In transport, storage and communication sector, Pakistan Railways witnessed negative growth of 6.41pc, water transport saw positive growth of 6.40pc, air transport negative growth of 2.08pc, pipeline transport negative growth of 8.02pc, communication positive growth of 3.65pc, road transport positive growth of 2.91pc and storage positive growth of 2.65pc in 2008-09.

In the shape of net factor income from abroad, total receipts are projected at Rs845.880 billion in 2008-09, compared to Rs564.010 billion in last fiscal year, showing a growth of 49.98 per cent.

Investment income from abroad declined to Rs65.586 billion in the ongoing fiscal compared to Rs100.047 billion, witnessing negative growth of 34.44 per cent.

http://thenews.com.pk/daily_detail.asp?id=177978

GDP growth estimates of 2.37pc fudged: official (http://www.thenews.com.pk/daily_detail.asp?id=177982)

Sunday, May 17, 2009

ISLAMABAD: The government has fudged the figures in an attempt to bring the reasonable GDP growth estimates of 2.37 per cent of ongoing fiscal close to the target of 2.5 per cent as agreed with International Monetary Fund.

If the government did not manoeuvre the figures, the GDP growth for current fiscal would be 0.5 per cent even if the cut in the size of GDP of fiscal 2007-08 by 1.7 per cent from 5.78 per cent to 4.1 per cent was acknowledged. And if the last year’s GDP of 5.78 per cent is kept as base, the GDP growth of the current fiscal must stand at -1 per cent, reveals the detailed investigation conducted by the News.

“The National Account Committee that met here on Saturday put its credibility on stake as it approved without any objection the working paper on GDP prepared by Federal Bureau of Statistics,” a senior official told The News.

For instance, the Federal Bureau of Statistics (FBS) did not include in the national accounts the growth in Large Scale Manufacturing of -7.7 per cent registered during July-March period, instead it included the growth of LSM registered during July-February period that stands at -5.7 per cent, the official said.

Moreover FBS included dubious figures of growth of major crops in GDP growth estimates for 2008-09. According to Planning Commission’s Annual Development Plan (ADP) for 2007-08, the major crops growth target was 4.5 per cent. Under the ADP, the target of wheat was earmarked at 24 million tonnes, rice 5.7 million tonnes, sugarcane 56.5 million tonnes and cotton 14.1 million bales.

But in the working paper prepared by FBS which NAC approved, it has been shown that rice produce in the ongoing fiscal has been estimated at 6.96 million tonnes as against target of 5.7 million tonnes; but wheat produce estimates have reduced to 23.4 million tonnes against target 24 million tonnes, cotton 11.8 against 14.1 million bales and sugarcane 50 million tonnes against 56.5 million tonnes.

However, the working paper of FBS shows that major crops growth has increased to 7.7 percent despite the decline in growth of three major crops as against the target of 4.5 percent.

If the real picture of the major crops is accounted for, the agriculture growth stands at 2.7 per cent and if the LSM growth of -7.7 per cent in July-March period and agriculture growth of 2.7 per cent is included in the national accounts the GDP growth of country for the ongoing fiscal stands at 0.5 per cent.

Advisor to Prime Minister on Finance Shaukat Tarin when contacted for comments over the massive reduction in last year’s GDP growth from 5.78 per cent to 4.1 per cent by FBS and NAC and not including the LSM growth in July-March period in national accounts and inclusion of faulty major crops figures in national accounts, he said: “Let me find out as to what has been approved by National Accounts Committee and then I will come to you for comments for response.”

When he was informed that the NAC approved the working paper of FBS as it is, of which the copy is available with The News, he said it is quite alarming if it happened so.

However, latter The News tried again and again for comments but his cell phone was found powered off.

The official who attended the NAC meeting said that the FBS has also took a dubious decision to drastically reduce the last year GDP growth by 1.7 percent from 5.78 percent to 4.1 percent.

The official said for last 10 years it never happened that growth of last year has drastically been adjusted downward. “The said decision has been apparently taken to reduce the base so that the GDP for current fiscal could be shown at reasonable level closed to 2.5 percent GDP target.”

In 2006-07, the provisional growth was at 7 percent, which got later revised at 6.8 per cent and finalized also at 6.8 per cent. However, the provisional GDP growth for 2007-08 was calculated at 5.78 per cent, which has been finalized by National Accounts Committee at 4.1 percent.

The official also disclosed that one of the participants objected on non-inclusion of LSM growth till March which is of -7.7 per cent, but the FBS official said that the month of March was abnormal because of the Long March activities so the growth in March was not included knowing the fact that whole current fiscal remained the abnormal year but it did not mean the abnormal months and year should not be includes in national accounts.

Head of the National Accounts Wing in FBS could not be contacted for comments despite many attempts.

Has a year ever gone by in Pakistan without someone accusing the government of fudging figures? I don't think so.

To be honest, that happens in every country. Even the Americans say the gov. lies to them about figures.

Does anyone have figs for the minimum growth that Pakistan require to ensure than jobs created in an year is more than the population growth???

In my opinion it shld be b/w 4-5%
But this year its -1

The Pakistani Rupee has gone down HEAVILY!!!!! :cry:

1 dollar= 80 pakistani rupee
1 euro= 109 pakistani rupee
1 Pound= 125 pakistani rupee.

One week ago it was 1 pound= 118 pakistani rupee

The stock exchange is doing terrible lost 4 points today and lost a whole load last week. This so "called war on terror" is doing nothing but havily shrinking the economy.

^^ were you thinking wars are an economy boosters?

Btw, a good amount of nations are experiencing negative growth and forget 4 points, some stock exchanges have lost thousands of points. I think sheer incompetence of the govt. is hurting much more than any security situation.

I think the pound's risen against the dollar, hasn't it?

^^ Yeah a lot.

105 points lost today. The rupee continues falling.

KARACHI: Intense selling activity kept the Karachi stock market under the bearish spell on the second trading day of the week Tuesday besides widening of trade deficit and fall in remittances in April 2009.

Analysts have attributed negative closing of the market on account of continuing foreign selling while Swat operation intensity and falling rupee value remained a major concern for retail and institutional investors. The trading day was marked by yet another dismal turnover of 75 million shares manifesting lack of confidence among investors.

The Karachi Stock Exchange (KSE) 100-share index shed 105.00 points or 1.46 percent as it closed at 7,067.85 points compared to 7,172.85 points in the previous session.

The KSE-30 index also shed 142.18 points and closed at 7,601.17 points compared to 7,743.35 points of the previous session. KMI-30 index shed 156.82 points and closed at 10,092.46 points compared to 10,249.28 points of the previous session.

The market turnover went down by 31.94 percent and traded 75.07 million shares as compared to previous session’s 110.31 million shares. The overall market capitalisation went down by 1.40 percent and closed at Rs 2.106 trillion compared to Rs 2.136 trillion traded in the previous session. Out of total 320 companies, 101 closed in positive zone, 203 in negative while 16 remained unchanged.

Hasnain Asghar Ali, analyst at Aziz Fida Husein and Co attributed negative closure of the market to dull activity led to low volume adjustment.

All this with availability of main board stocks at attractive levels failed to allow local bourses to perform, further delay in realising the identified reason of this lacklustre will certainly disappoint even the seasoned participants, making available ready board leverage tool is essential for the market to perform and perform at its potential, deliberate delay might cause irreparable damage.

Ahsan Mehanti, senior analyst at Shahzad Chamdia Sec said uncertainty over taxation on capital market in federal budget 2009 and unfavorable week on week inflation figures played a catalyst role in continuing fall in the market.

The KSE 100 Index opened in the green zone with a gain of 24.55 points and at the end of the day closed at 7167.85 with a loss of 105.00 points.

All shares index closed at 5075.96 with a loss of 71.58 points. Trading activity was worst as compared to the last trading session as the ready market volume stands at 63.500 million as compared to last trading session 110.312 million. staff report

KARACHI: Ambassador of Pakistan to Libya, Jamil Ahmed Khan, has said that around 30-50 thousand skilled and semi-skilled labourers would be sent from Pakistan to Libya by the end of the current calendar year.

He was briefing a group of journalists here the other day in the backdrop of President Asif Ali Zardari’s recent visit to Libya. “This was the first official visit from any president to Libya since Zulfiqar Ali Bhutto’s government ended,” he said.

At present, some 12,000 Pakistani employees are working in Libya, out of which 25 are rendering their services at top managerial posts, Khan said in reply to a question.

In 1974, around 0.15 million Pakistanis were working in Libya. However, relationship between the two countries cooled, as the Libyan head of state Colonel Moammar Gaddafi did not support the “governments of two dictators in Pakistan after the end of Bhutto’s government.”

Since President Zardari was a symbol of democracy the relationship between Pakistan and Libya was moving fast on the path of normalisation, he said.

In reply to a query, Khan said that cross-investment between the two counties would amount to $2 billion in the next two years, while Libya has shown interest to invest in the windmill sector.

The Joint Ministerial Committee (JMC) of the two countries would meet at the end of July this year. It would also discuss the feasibility study of the windmill project. “This study would probably be conducted between July and September,” he said.

Some 300 companies from across the world, mostly from China, India and the West, have arrived in Libya and are exploiting investment opportunities, he said, adding that most of these companies were investing in energy and infrastructure development.

“Libya (also) has great potential in sectors like textile, agriculture (dairy), construction, and plastic goods,” he explained.

He told that Pak-Libya Holding Company would open a bank in Libya very soon, adding that Pakistan can greatly help Libya in the development of its banking system, as the Libyan banking system was still passing though its infantry period.

Libya has allocated about $100 billion to be invested in various projects during the next five years. Moreover, it holds sovereign liquidity of $200 billion, he disclosed.

Ambassador of Pakistan to Libya further said that Pakistan International Airline (PIA) would review its decision of resuming its flights to Libya, and in case it does not find flights profitable, then the government of Pakistan would ask private airlines to exploit the available opportunity.

“Therefore, hundreds of thousands of Chinese and Philippines working in Libya would use our airline services if PIA or any other airline resume flights, as I have already talked to concerned officials in China in this regard,” he added.

Pakistan would also hold a single country exhibition in Libya in September and would participate in its Revolutionary Day and cultural shows, he further told the media.

During President Zardari’s visit, the two countries signed six MoUs and one agreement, ie, Extradition Treaty.


http://www.thenews.com.pk/daily_detail.asp?id=178434

Pakistan receives $224m pledges for IDPs UN to seek $500-600m : Islamabad needs $1bn (http://www.thenews.com.pk/top_story_detail.asp?Id=22273)

Khalid Mustafa

ISLAMABAD : Pakistan on Thursday received pledges of $224 million for relief and rehabilitation of the internally displaced persons (IPDs) during a donors’ meeting.

However, the United Nations is to flash on Friday an appeal to the world, seeking about $500-600 million, said Minister of State for Economic Affairs Division Hina Rabbani Khar, who was accompanied by Information Minister Qamar Zaman Kaira, at a press briefing.

She said about 40 countries apart from the international financial institutions (IFIs) participated in the meeting. Khar explained that the pledged amount includes the recent US announcement of $110 million. She said the said pledges are not final as they can increase after the UN launches its appeal.

The $224 million pledges are : USA ($110m), UK ($12m), Japan ($43.50m), France ($16.32m), Germany ($17.76m), Canada ($4.82m), Denmark ($1m), China ($1m), Norway ($2.75m) and European Commission ($9.25 m). She said these pledges might revise upwards as China, Norway and other countries have assured to raise their contribution.

The break-up that Ms Khar gave to media persons show that in the donors’ meeting, no pledges at all came from any Muslim country and she did not even mention the fact. However, she said Pakistan needs $1 billion for reconstruction of areas destroyed during the military operation for which the donor agencies would play a pivotal role. “The reconstruction cost of $1 billion has been assessed through satellite imagery as it is not possible for agencies, government teams and even the media to go there when the war with militants is in full swing to assess the damage.”

To a question, she said aid for the IDPs from the western countries would land in Pakistan through the UN agencies. However, Muslim countries would extend their help under bilateral arrangements.

Right now the biggest challenge the government is facing was to provide relief, manage camps and simultaneously work on rehabilitation and reconstruction issues. She said the government has announced immediate payment of Rs25,000 to each displaced family so that the affected people could cope with their dire needs easily and with dignity.

She said about 22 UN agencies are working in Pakistan and they are very much involved in the government-led relief operation. Qamar Zaman Kaira disclosed the government will continue to provide services to the IDPs if the materialisation of pledges gets delayed and to this effect, as the president and the prime minister have asked the finance ministry to cut the development budget and even the budgetary allocation on important ongoing projects as the government priority is to provide solace to the displaced persons.

He said the biggest challenge is to target those displaced persons who are living with their relatives, as the government wants to register them and provide required food relief and cash of Rs25,000 per family. So far 80 per cent of IDPs have been registered with the UN assistance. He said the food is being delivered to the IDPs through the World Food Programme.

He said the government is also trying to approach the people stranded in the war areas because of the ongoing military operation. To a question, he denied the US troops would take part in the military operation against the militants. He said the whole relief system is to be placed soon. However, there exists no food shortage for the IDPs and the government is all set to ensure food supply through airdrops where land approach is not possible.

Earlier, in the donors’ meeting, Prime Minister Yousuf Raza Gilani urged the international and local donors to help the government for effective rehabilitation of the IDPs. In his opening remarks, the prime minister said the government was cognizant of the problems being faced by the displaced persons and was taking steps for their rehabilitation on a war-footing. Gilani assured full security to the international aid workers working in the affected areas and relief camps.

Cheers:cheers:

Japan is giving 43.5 mil despite their nosediving economy. While Canada's economy is going well but they're giving only 4.8 mil. Come on Canada, don't be so stingy!

^^
Ek to wo bechaaray paisay de rahay hain... ooper se aap ka nakhra? :laugh:

Im just suprised that Saudi Arabia didn't give anything.

^^not only saudi anyone from gulf or muslim countries.btw Australia will give around US$M9.0 but through UN agncies not directly to Pakistan Govt.

Malaysia keen to increase trade with Pakistan

KARACHI ( 2009-05-29 17:03:44 ) :Consul General of Malaysia Mohammad Khalid Abdul Razak on Friday said Malaysia is interested in increasing two-way trade with Pakistan. He was speaking at a dinner meeting hosted by Karachi Chamber of Commerce and Industry (KCCI) in honour of 13-member trade delegation of Malaysia, currently visiting Pakistan (May 25 to June 2 ).

The Consul General said Pakistan and Malaysia are enjoying excellent relations in trade, economic, social and other fields.

He said number of Malaysian companies were actively engaged in Pakistan, besides frequent exchange of delegations between both countries was a regular feature. Besides, Malaysia has made huge investment in palm oil sector in Pakistan.

Trade Commissioner of Malaysia, Zainuddin Ahmed Jalil said Malaysian investors are keen to invest in services and transport sector of Pakistan.

He said Malaysia has a population of 27 million out of which 35 percent is associated with service sector.

He said at present Malaysia is importing rice, textile products and seafood items from Pakistan whereas exports palm oil, rubber and food items to Pakistan.

He said Malaysia is keen to increase trade of rice, leather and leather products and tea with Pakistan.


http://aaj.tv/news/Business/137435_detail.html

The announcement of the National Budget for the financial year 2009-10 is scheduled for June 13 (Saturday).

“All the budgetary proposals and recommendations received by the ministry of finance from the various stakeholder have been sent to Federal Board of Revenue (FBR) for the finalization of the proposals and would be completed by May 31 (Sunday), a top official of the Ministry of Finance told APP.

He further said that the meeting of the National Economic Council (NEC) to approve the Public Sector Development Programme (PSDP) 2009 10 would be held on June 1.

He said that Ministry of Finance has received a number of recommendations and proposals from various ministries and departments to be incorporated in the upcoming budget.

After the finalization of these proposals and approval from the cabinet, the final budget for the next financial year would be presented in the Parliament on June 13.

He said that it has been the regular exercise of the finance ministry to circulate to the ministries and divisions asking them for recommendations and proposals on the projected revenues and expenditures.

Highlighting the procedure for the preparation of the budget for new financial year, he said that Ministry of Financial circulates to the ministries and divisions to submit their proposals regarding the revenues and expenditures on the month of October every year.

The exercise starts in October every year and is completed by May end followed by the announcement of the federal budget, the official added.

When asked about the proposed outlay for the forthcoming budget, he said that he was not in a position to tell the outlay at this stage as the ministry has to finalize the budget for the next financial year.

http://aaj.tv/news/Business/137424_detail.html

Friday, May 29, 2009

KARACHI: The Karachi stock market continued to remain buoyant on Thursday due to decline in Pakistan Investment Bond (PIB) yields and rising foreign interest, which boosted investor sentiment.

The Karachi Stock Exchange (KSE) 100-share index gained 99.29 points or 1.38 percent to close at 7,288.13 points as compared to 7,188.84 points of the previous session. The KSE 30-share index increased by 108.26 points and closed at 7,885.23 points as compared with 7,776.97 points. The KMI 30 index also surged 127.11 points and closed at 10,658.04 points as against 10,530.93 points.

“Tentative timeline announced by the officials for eliminating the extremists from sensitive areas in the Northern Areas before resettling the internally displaced persons, rallying oil prices in the international markets and foreign inflow witnessed a day earlier, kept the positive momentum alive,” said an analyst at Aziz Fida Husein, Hasnain Asghar Ali.

The market turnover went up by 9.57 percent and traded 154.78 million shares as compared to previous session’s 141.25 million shares. The overall market capitalisation also increased by 1.36 percent and closed at Rs 2.159 trillion as compared with Rs 2.130 trillion. Out of total 324 companies, 225 closed in the positive zone, 82 in negative, while 17 remained unchanged.

Analysts said that leading from the front oil and gas exploration, fertilizer and banking stocks witnessed buying interest by major investors, while sector and stock swapping and absence of carryover product kept the rise confined.

An aggressive allocation figure for PSDP in the upcoming budget of Rs 500 billion allowed the cement sector to neutralise the budget impact and activity by local investors allowed the sector to participate in the rally with decent turnover. Since the sector stays in the limelight for the revenue increase exercise, budget speech should be awaited for making fresh bets, despite being under-valued.

“The current rally is likely to continue as there are reports that the market will not be taxed in the upcoming budget,” said an analyst at TopLine Securities Mohammad Sohail. Pak PTA Ltd was the volume leader in the share market with 9.93 million shares as it closed at Rs 3.53 after opening at Rs 3.42 making a financial gain of 11 paisas. Lucky Cement traded 8.84 million shares as it closed at Rs 57.89 from its opening at Rs 56.81 gaining Rs 1.17. Jah Siddi and Co traded 8.79 million shares as it closed at Rs 28.09 as against its opening at Rs 26.76 gaining Rs 1.17. KESC traded 8.07 million shares as it closed at Rs 2.98 as compared to its opening at Rs 2.61 making a financial gain of 37 paisas. staff report

http://www.dailytimes.com.pk/default.asp?page=2009%5C05%5C29%5Cstory_29-5-2009_pg5_14

Pakistan business fighting on all fronts

Not so long ago Pakistan was being described as one of the booming Asian Tigers, but now its economy more resembles a whimpering pussycat.

http://newsimg.bbc.co.uk/media/images/45808000/jpg/_45808143_007237236-1.jpg
People have been forced to leave their homes and livelihoods behind

As the government continues its military campaign in the Swat valley in the north, hundreds of thousands of men, women and children have fled the fighting, losing their homes and livelihoods.

The turmoil has had serious effects on business and the wider economy.

Pakistan is suffering from falling foreign investment, a weakened currency, a badly bruised stock market, and economic growth that is predicted to be half what it was last year.

The country was forced to turn to the International Monetary Fund (IMF) for a $7.6bn (£5.2bn) rescue package towards the end of 2008.

But the money came with strings - unpopular austerity measures including higher interest rates to tackle inflation.

Taliban censorship

Until a few months ago Raymat Khan ran a business selling televisions, videos and DVD players in the embattled Swat Valley.

He closed his business when the Taliban arrived and destroyed his television sets and DVD players and told him he could not sell such items any longer.

"The Taliban said that watching television is prohibited in Islam," he says.

"Because of the military action, all businesses have been forced to leave the area," he laments.

Even larger companies such as Allied Power, which supplies generators, fibre-optic cables and mobile phone masts to areas of the North West Frontier Province and to Afghanistan, has had its problems.

Its chief executive Sikandar Shah says the kidnapping of business people had been a major issue.

"People do not feel secure and many have moved to Islamabad, Lahore or Karachi, while many have moved abroad," he explains.

Interest woes

Mr Shah also bemoans the fact that interest rates have risen so high, which effectively means businesses cannot avail themselves of the credit facilities on offer.

It is not just military action that is having a destructive effect on Pakistan's economy however.

The International Monetary Fund gave Pakistan an emergency loan facility, on condition that the government tried to bring down raging inflation which peaked at 25% per cent in the summer of 2008, by raising interest rates and taxes - which has been putting the squeeze on business.

Babar Ayaz of the Business Recorder in Karachi says the global economic crisis is a secondary factor for most small businesses.

"I think they are more affected by the militant insurgency and the law and order situation than the international situation," he says.

He also believes the financial sector in Pakistan has been affected because the economy has been hit and, as a result, people have started defaulting on their loans.

Furthermore, he argues, the IMF has imposed a completely different formula for Pakistan than what is being adopted around the world.

In most countries, inflation rates have fallen whereas in Pakistan costs have been forced up.

http://newsimg.bbc.co.uk/media/images/45808000/jpg/_45808490_007276974-1.jpg
Displaced people will have to be rehoused and their lives rebuilt

"The IMF's action, which added to the inflation in Pakistan, has actually played havoc with business," he says.

Although the IMF has pumped a lot of money into the economy, it has not produced the expected results because the government is spending more in the fight against terrorism.

"At the same time we have been hit by an electricity crisis and our international exports have gone down," Mr Ayaz says.

Many people believe that if the Taliban was curbed or defeated, the outlook for Pakistan and its economy would improve. But there is no sign of an early resolution of that conflict.

http://news.bbc.co.uk/1/hi/business/8062949.stm

WB, PC at daggers drawn over ‘real’ poverty figures (http://www.thenews.com.pk/print1.asp?id=180567)

Monday, June 01, 2009
By By Mehtab Haider

ISLAMABAD: The World Bank (WB) has validated a decline in poverty by 5.1 per cent in Pakistan, suggesting that compared to the earlier 22.3 per cent of the population living below the poverty line, the number stands revised downwards to 17.2 per cent of the total population, official documents available with The News reveal.

The Planning Commission high-ups, however, are in no mood to accept this positive development and are reluctant to include the latest figures in the upcoming Economic Survey 2008-09, which will be launched before the budget for 2009-10. Their doubts stem from the apparent incredulity of the figure showing a positive trend during the economic recession.

The World Bank has endorsed the poverty figure of 17.2 per cent and verified the correct use of methodology to calculate this figure by the subordinate institution of the Planning Commission’s Centre for Poverty Reduction and Social Policy Development (CPRSPD).

But apparently, this is not enough for the Planning Commission bosses, who appear extremely averse to owning up this latest poverty figure, the because PC’s own panel of economists, led by renowned economist Dr Hafeez A Pasha, had estimated poverty in the range of 37.5 per cent just a few months back.

“It is an awkward situation for the Planning Commission, as from top to bottom, everyone talked about poverty line figure in the range of 35 per cent to 40 per cent and now, how they can endorse another analysis done by its another subordinate institution — CPRSPD — showing almost half of poverty of 17.2 per cent, compared to the Panel of Economist number of 37.5 per cent,” the official sources said.

According to the documents available with The News, the WB validated the decline in poverty from 22.3 per cent in 2005-06 to 17.2 per cent on the basis of the data collected in 2007-8 under the Household Income Expenditure Survey (HIES). The latest survey found that poverty in the urban areas stood at 10.10 per cent and in the rural areas, it stood at 20.60 per cent.

Planning and Development Division Secretary Ashraf M Hayat told The News that nothing had been finalised in this regard. When asked whether the government would release the latest poverty figures in the upcoming Economic Survey 2008-09, he said the government would review the situation, which could take a month.

Planning Commission Chief Economist Dr Rashid Amjad, when contacted, told The News that the government was reviewing the latest poverty estimates and nothing had been decided in this regard so far.

But when the Planning Commission’s Member Social Sector Shaukat Hameed was contacted, he said he was not going to verify any information regarding validation of the WB about the latest poverty estimates. When informed about the presentation given by the WB experts on May 29, a copy of which is available with The News, he said they were going to brief Planning Commission Deputy Chairman Sardar Assef Ahmed Ali on Monday (today) and a decision would be taken on the latest poverty estimates.

But sources claimed that the government had almost decided not to release this latest poverty number, because it did not match the ground realities and was contrary to the existing situation. Those, who favour the release of the latest poverty figures, argue that the government should not change its goal post, as this would ruin all the past efforts to stick to the consistent methodology, endorsed both by the donors as well as Pakistan’s relevant economic ministries. The poverty is estimated by using the CPI-based inflation in Pakistan and poverty’s Guru Nanak, Khakwani, also endorsed this way of calculating poverty during the Musharraf-Shaukat Aziz regime.

@Mods Dont Stop me!!

:banana::banana::banana::banana::banana:

How is 'poverty line' defined?

I'm more inclined to believe the 37.5% figure.

so the poverty level actually went Down during Musharraf's era? If it's true, its an upper-cut for all the people who constantly blamed Musharraf for "mehngaie"

If today poverty rate is 17%, then it would be near 10% in musharraf's tenure, bcoz when musharraf left, and ppp govt took over, exchange rates depreciated by 30%, inflation was over 25%!

If today poverty rate is 17%, then it would be near 10% in musharraf's tenure, bcoz when musharraf left, and ppp govt took over, exchange rates depreciated by 30%, inflation was over 25%!

Musharraf and Q League already knew that this was going to happen. PPP couldn't handle the situation.

Nowadays poverty rate is around 35-37%.

Pakistan tells world community to forgive all loans since 2005 (http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/world/11-pakistan-tells-world-community-to-forgive-all-loans-since-2005--il--06)

Masood Haider

NEW YORK : Pakistan’s Ambassador to the United Nations Abdullah Husain Haroon Tuesday called on the international community to help Pakistan overcome the desperate humanitarian crisis emerging in the wake of military action against militant groups. He suggested that the best way to do so would be for all loans given to Pakistan by international donors following the 2005 earthquake to be forgiven.

Speaking at a meeting on the emerging crisis at Asia Society here he said this was not America’s war on terror; it was world’s war against the scourge.

The world, therefore, has a responsibility to come to the aid of Pakistan, which had in the past few years been hit by a series of disasters — the 2005 earthquake, the 2007 floods and lately by an astronomical rise in energy and food prices.

Also making an appeal to send money to Pakistan was George Rupp, Chief Executive Officer of International Rescue Committee who felt that $ 110 million dollars sent Pakistan by the United States were not enough.

‘Substantially much more money was needed to fight this war,’ which he felt would be long and protracted.

Asked about the morale of the army in fighting the militants Ambassador Haroon said that ‘[The] Pakistan Army was clearing the valley of the Taliban as it advanced to other areas. The Taliban will not go in a hurry,’ he said, adding, ‘They keep coming back.’

Replying to a question, the ambassador said that adequate mechanisms and monitoring systems were in place to ensure that money being pumped into Pakistan did not go into wrong hand and was used fog the welfare of the affected and for the development of the region.

Questioned about the release of Jamaatud Dawa chief Hafiz Saeed, Haroon said that he was set free by Pakistan’s independent judiciary, which emerged at the climax of the lawyers movement. The move did not violate any UN Security Council resolution or decisions.

Nicolas Platt, former US Ambassador to Pakistan, was moderator at the panel discussion.

Cheers:cheers:

WASHINGTON (AFP) — The World Bank on Thursday said it approved an aid package worth 900 million dollars for Pakistan, the bulk aimed at educational projects.

The assistance will help Pakistan "improve education in Punjab and Sindh Provinces and ... further scale up a community driven development project that is already active in some 35,000 villages throughout the country," the Bank said in a statement.

The credits from the International Development Association, the World Bank's concessionary lending arm that specializes in helping the world's poorest 78 countries, carry a 0.75 percent service fee, a 10-year grace period, and a maturity of 35 years.

"Even where there have been gains in student enrollment as in Punjab and Sindh, these have yet to translate into improved student learning," World Bank country director for Pakistan Yusupha Crookes said in the statement.

A 350 million dollar package was approved for the Punjab province and a 300 million dollar package approved for the Sindh province.

The aid will help education by focusing on "improving governance, management, and capacity in education -- which are at the heart of both the provincial governments' reform strategies," Crookes said.

The Bank also approved 250 million dollar package for an anti-poverty program that has received 646 million dollars from the World Bank since 2000.

The program, which has reached more than 2.5 million people, includes funds for micro-credit loans and skills and enterprise development training.

http://www.google.com/hostednews/afp/article/ALeqM5iEriNI_CdmECQyQYzgZW0mjlkisA

so the poverty level actually went Down during Musharraf's era? If it's true, its an upper-cut for all the people who constantly blamed Musharraf for "mehngaie"

No, the people of Pakistan, PPP and PML-N wanted jumoeriat. Now they are getting it at least.

The whole country is fucked up. GDP growth will be at 2 percent. Go PPP.

^^GDP growth for this year is -1, it will 2 if we lower GDP growth of last year!
And govt has lowered growth of last year from 5.38 to 4.7, to achive target of this year!

Check this out!



GDP growth estimates of 2.37pc fudged: official (http://www.thenews.com.pk/daily_detail.asp?id=177982)

Sunday, May 17, 2009

ISLAMABAD: The government has fudged the figures in an attempt to bring the reasonable GDP growth estimates of 2.37 per cent of ongoing fiscal close to the target of 2.5 per cent as agreed with International Monetary Fund.

If the government did not manoeuvre the figures, the GDP growth for current fiscal would be 0.5 per cent even if the cut in the size of GDP of fiscal 2007-08 by 1.7 per cent from 5.78 per cent to 4.1 per cent was acknowledged. And if the last year’s GDP of 5.78 per cent is kept as base, the GDP growth of the current fiscal must stand at -1 per cent, reveals the detailed investigation conducted by the News.

“The National Account Committee that met here on Saturday put its credibility on stake as it approved without any objection the working paper on GDP prepared by Federal Bureau of Statistics,” a senior official told The News.

For instance, the Federal Bureau of Statistics (FBS) did not include in the national accounts the growth in Large Scale Manufacturing of -7.7 per cent registered during July-March period, instead it included the growth of LSM registered during July-February period that stands at -5.7 per cent, the official said.

Moreover FBS included dubious figures of growth of major crops in GDP growth estimates for 2008-09. According to Planning Commission’s Annual Development Plan (ADP) for 2007-08, the major crops growth target was 4.5 per cent. Under the ADP, the target of wheat was earmarked at 24 million tonnes, rice 5.7 million tonnes, sugarcane 56.5 million tonnes and cotton 14.1 million bales.

But in the working paper prepared by FBS which NAC approved, it has been shown that rice produce in the ongoing fiscal has been estimated at 6.96 million tonnes as against target of 5.7 million tonnes; but wheat produce estimates have reduced to 23.4 million tonnes against target 24 million tonnes, cotton 11.8 against 14.1 million bales and sugarcane 50 million tonnes against 56.5 million tonnes.

However, the working paper of FBS shows that major crops growth has increased to 7.7 percent despite the decline in growth of three major crops as against the target of 4.5 percent.

If the real picture of the major crops is accounted for, the agriculture growth stands at 2.7 per cent and if the LSM growth of -7.7 per cent in July-March period and agriculture growth of 2.7 per cent is included in the national accounts the GDP growth of country for the ongoing fiscal stands at 0.5 per cent.

Advisor to Prime Minister on Finance Shaukat Tarin when contacted for comments over the massive reduction in last year’s GDP growth from 5.78 per cent to 4.1 per cent by FBS and NAC and not including the LSM growth in July-March period in national accounts and inclusion of faulty major crops figures in national accounts, he said: “Let me find out as to what has been approved by National Accounts Committee and then I will come to you for comments for response.”

When he was informed that the NAC approved the working paper of FBS as it is, of which the copy is available with The News, he said it is quite alarming if it happened so.

However, latter The News tried again and again for comments but his cell phone was found powered off.

The official who attended the NAC meeting said that the FBS has also took a dubious decision to drastically reduce the last year GDP growth by 1.7 percent from 5.78 percent to 4.1 percent.

The official said for last 10 years it never happened that growth of last year has drastically been adjusted downward. “The said decision has been apparently taken to reduce the base so that the GDP for current fiscal could be shown at reasonable level closed to 2.5 percent GDP target.”

In 2006-07, the provisional growth was at 7 percent, which got later revised at 6.8 per cent and finalized also at 6.8 per cent. However, the provisional GDP growth for 2007-08 was calculated at 5.78 per cent, which has been finalized by National Accounts Committee at 4.1 percent.

The official also disclosed that one of the participants objected on non-inclusion of LSM growth till March which is of -7.7 per cent, but the FBS official said that the month of March was abnormal because of the Long March activities so the growth in March was not included knowing the fact that whole current fiscal remained the abnormal year but it did not mean the abnormal months and year should not be includes in national accounts.

Head of the National Accounts Wing in FBS could not be contacted for comments despite many attempts.

RIYADH: Saudi Arabia, Iran and Qatar have increased their capital shares in the Jeddah-based Islamic Development Bank, said an IDB announcement.

‘Other member countries are also welcome to increase their capital shares,’ the IDB President, Ahmed Mohammed Ali, said in the statement.

He, however, said the bank would set out a system to organise such increases by member states.

The bank’s board of directors in a meeting has also given approval to finance projects worth $575 million, including a $91 million dam in Iran and a $137 million hydroelectric station in Pakistan.

The bank has also agreed to finance a major railway project linking Turkmenistan, Iran and Kazakhstan.

Turkey would get $220 million to purchase electric locomotives, Turkmenistan $31 million to buy oil tankers, Lebanon $52.7 million to establish a water project and Suriname $5.5 million to modernise its sea port, an official statement said.

The IDB chief said the Islamic dinar, which the bank uses as a currency unit for its calculations, is equivalent to one US dollar. However, he said the currency is not used for bank’s lending operations.

Ali said the IDB would give priority to combating poverty.

‘The bank will set out a variety of programmes for this purpose,’ he added.

http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/13+idb+approves+hydro+unit+for+pakistan-za-05

Govt allocates 1900 acres for Japanese zone

KARACHI: The Acting Governor and Speaker Sindh Assembly, Nisar Khuhro, has said that the new NFC Award would be constituted in 2009-10, adding that the common man would be given special consideration in the upcoming budget.

Speaking to the media at the inauguration of ‘My Karachi Oasis of Harmony” being held at the Karachi Expo Centre from 5th to 7th June, Khuhro said that though Pakistan has internal and external threats, “we have to move forward as we are a resilient nation and we will fight back all threats.”

Adviser to the CM on Investments, Zubair Motiwala informed that a special zone has been allocated to Japanese entrepreneurs and investors and 1,900 acres of land has already been given to Japan.

He informed that Yamaha and Sony along with others have committed to come to Pakistan and invest in industries here. He said that the entire zone would be dedicated to Japanese entrepreneurs only and their residences would also be set up within the zone.

Motiwala added that Pakistan-China export zone in Punjab is on the stage of completion and this new Japan zone would be established along the same lines.

Sindh Minister of Industries, Rauf Siddiqui invited the business community to invest particularly in Karachi, Hyderabad, Nawabshah and Sukkur as he said that these are the areas that have been targeted for setting up new industrial zones.

President of KCCI, Anjum Nisar said that Pakistani businessmen have the skills, education, strength and the natural resources but what they need is government’s support to help them utilize their opportunities to the maximum.

He urged the Sindh government to provide equal playing field to trade and industry of Sindh and particularly Karachi. Nisar said that measures should be taken to reduce high cost of doing business, rising prices of utilities, prolonged power and gas outages etc.

Nisar also highlighted that small and medium enterprises (SMEs) are the backbone of the economy of any country and therefore the government should pay special concentration on them.

He said, “I would urge the concerned circles of the government to establish more SME zones especially for women entrepreneurs.” He further stated that it is the small and medium enterprises that bring about economic revolution.

Leader of BusinessMen Group, Siraj Kassam Teli stated that KCCI has no commercial motives for organizing the exhibition. “We are making our humble contribution in restoring and uplifting the image of Karachi,” he expressed.

Teli asked the government to reduce interest rates by 5pc to move the economy towards growth. “The government and its economic managers were informed many times to loosen up the monetary policy and bring down the interest rates into single digits,” he stated. “By not accepting our point of view of following supply side of economics, it has increased the cost of doing business to such a level that our industry has become uncompetitive and at the same time, the standard of living has become costly for our people,” he added.

http://thenews.com.pk/daily_detail.asp?id=181463

Tokyo, June 9 (PTI) Japan will provide USD 10 million in emergency aid to Pakistan to support over three million people displaced by anti-Taliban operations in the country's restive northwest, Foreign Minister Hirofumi Nakasone said today.
Japan pledged USD 1 billion in assistance for Pakistan over two years during a donors conference here on April 17, and the announcement of the grant aid is part of this, Nakasone said.

Pakistan has seen more than 3 million people internally displaced after its army launched an operation to flush out the Taliban from its stronghold in Swat in late April.

The grant aid, including emergency food aid, will be provided through UN organisations such as the World Food Programme and the UN refugee agency, Kyodo news agency reported. PTI


http://www.ptinews.com/pti%5Cptisite.nsf/0/911A65EE9EEDD411652575D00035AE73?OpenDocument

http://www.nation.com.pk/uploads/news_image/large/PakistanTurkeytoboosteconomiccooperation_5280.jpg

Foreign Minister Shah Mehmood Qureshi has said the next meeting of the Friends of Pakistan group ministers will be held in Istanbul in September. He was addressing a joint press conference with Turkish Foreign Minister Ahmet Davutoglu here on Tuesday after a meeting. Turkish foreign minister also presented a cheque of US$ 10 million from the government of Turkey for Prime Minister’s Fund for the internally displaced persons. Qureshi said that the two sides have agreed to boost cooperation in trade, energy and other sectors. Turkish Foreign Minister Ahmet Davutoglu said the two brotherly countries will continue cooperation in every sector.

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Regional/Islamabad/09-Jun-2009/Pakistan-Turkey-to-boost-economic-cooperation

WB to provide $1.255b to Pakistan] (http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Business/10-Jun-2009/WB-to-provide-1255b-to-Pakistan)

ISLAMABAD (APP) - The government and World Bank here on Tuesday signed three agreements of $ 900m for financing development projects in different sectors.

Secretary Economic Affair Division, Farrakh Qayyum and WB Acting Country Director, Saeed Habsi inked the MoU on behalf of their respective sides.

Secretary Education Department Punjab, Nadeem Ashraf, Secretary Education Department Sindh, Rizwan Memon and Kamal Hayat, CEO Pakistan Poverty Alleviation Fund signed the Project Agreements on behalf of their respective organizations.

According to the agreement, the WB would provide $ 350m for Punjab Education Sector Project, while about $ 300m for Sindh Education Sector Project and $ 250m for Pakistan Poverty Alleviation Fund. The overall objectives of these projects are to help the government enhance efficiency and productivity of sectors like education and Poverty Alleviation.

The terms and conditions for the education sector credits will remain as per the World Bank standard, maturity period of the credit is 35 years having a grace period of 10 years.

It said that the government has to pay service charges at the rate of 0.75pc and commitment charges at the rate of 0.5pc per annum. The objectives of the project are to improve access and equity and the quality and relevance of education in the province of Punjab.

The Project consists of the financing of the Punjab Education Sector Reform Program to enhance education sector expenditure and improved fiduciary environment.

$10m would be spent on technical assistance and building of institutional capacity of Punjab’s education sector departments and agencies.

$ 300m would be spent on Sindh Education Sector Project with an objective to improve access and equity and the quality and relevance of education in the Province of Sindh.

The Project consists of the financing of SERP, provide financial support to Sindh in its implementation of the SERP through its programme to improve the fiscal sustainability and effectiveness of public expenditures.

Program would help improve education sector management and strengthen the functioning, capacity and accountability of provincial, district and school level management for education service delivery. It would also help to improve access to quality schooling in rural areas for girls and to improve the quality of teaching and student learning.

It will also provide technical assistance to develop or refine strategies to enhance the performance of incentive programs for public schools to improve transparency and build Sindh’s Education sector capacity for the development of specialized skills needed for competency-based testing of teachers. The bank would also provide $ 250m for Third Pakistan Poverty Alleviation Fund Project. The objective of the project is to empower the targeted rural poor with increased incomes, improved productive capacity and access to services to achieve sustainable livelihoods.

The World Bank would also provide $ 355m to Pakistan for social sector development like education, healthcare, power generation and for poverty alleviation in the country.

In this effect, the meeting of the World Bank’s Board of Directors would be held on June 18 and June 29 respectively to approve financial assistance for the country.

The WB board of directors would approve about $ 100m for HEC and about $ 150m for social sector protection.

The WB would also approve the provision of $ 60m for social safety net to alleviate poverty from the country, beside this it will also give $75m for the eradication of polio in the country. Beside, the bank would also provide $ 30m for Thar coal development project, where huge coal reserves and power generation potential was identified to help the country overcome the shortfall of energy.

Cheers:cheers:

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PAKISTAN : ECONOMIC SURVEY 2008-2009 (http://www.finance.gov.pk/survey/index.htm)

Cheers:cheers:

^^
Thanks buddy!

Economic Survey 2008-09: Highlights (http://www.brecorder.com/index.php?id=922167&currPageNo=1&query=&search=&term=&supDate=)

TEXT (June 12 2009):

1. GROWTH AND INVESTMENT: Real GDP grew by 2.0 percent in 2008-09 as against 4.1 percent last year and growth target of 4.5 percent. The modest growth of just 2.0 percent is shared between Commodity Producing Sector (CPS) (0.08 percentage points) and services sector (1.92 percentage points).

Within the CPS, agriculture contributed 1.0 percentage point or 50.1 percent to overall GOP growth (a significant increase from its contribution of only 5.0 percent last year) while negative performance of industry dragged growth lower by 0.92 percentage points or 46.1 percent to neutralise positive contribution of agriculture.

In the services sector major contributions to GOP growth came from transport, storage & communication (0.3 percentage points or 14.6 percent), wholesale & retail trade (0.7 percentage points or 27.1 percent) and social services (0.8 percentage points or 38.6 percent).

Agriculture sector has depicted a stellar growth of 4.7 percent as compared to 1.1 percent witnessed last year and target of 3.5 percent for the year. Major crops accounting for 33.4 percent of agricultural value added registered an impressive growth of 7.7 percent as against a negative growth of 6.4 percent last year and a target of 4.5 percent. The livestock sector grew by 3.7 percent in 2008- 09 as against 4.2 percent last year.

Output in the manufacturing sector contracted by 3.3 percent in 2008-09 as compared to expansion of 4.8 percent last year and target of 6.1 percent. Small and medium manufacturing sector maintained its healthy growth of last year at 7.5 percent. Large-scale manufacturing depicted contraction of 7.7 percent as against expansion of 4.0 percent in the last year and 5.5 percent target for the year. The massive contraction is because of acute energy outages, a weak security environment and political disruption in March 2009.

The services sector grew by 3.6 percent as against the target of 6.1 percent and by last year's actual growth of 6.6 percent. Value added in the wholesale and retail trade sector grew at 3.1 percent as compared to 5.3 percent last year and target for the year of 5.4 percent.

Finance and insurance sector registered negative growth of 1.2 percent in 2008-09. The performance of this sector shows that Pakistan's financial sector is integrated in the world economy and is feeling the heat of the crisis plaguing international financial markets. The Transport, Storage and Communication sub-sector depicted a sharp deceleration in growth to 2.9 percent in 2008-09 as compared to 5.7 percent of last year.

Pakistan's per capita real income has risen by 2.5 percent in 2008-09 as against 3.4 percent last year. Per capita income in dollar term rose from $1042 last year to $1046 in 2008-09, thereby showing marginal increase of 0.3 percent. Real private consumption rose by 5.2 percent as against negative growth of 1.3 percent attained last year.

However, gross fixed capital formation could not maintain its strong growth momentum and real fixed investment growth contracted by 6.9 percent as against the expansion of 3.8 percent in the last fiscal year. Total investment has declined from 22.5 percent of GDP in 2006-07 to 19.7 percent of GDP in 2008- 09. Fixed investment has decreased to 18,1 percent of GDP from 20.4 percent last year.

Private sector investment was decelerating persistently since 2004-05 and its ratio to GDP has declined from 15.7 percent in 2004-05 to 13.2 percent in 2008-09. Public sector investment to GDP ratio which has been depicting a consistent increase from 4.0 percent in 2002-03 to 5.6 percent in 2006-07, declined to 4.9 percent in 2008-09.

The national savings rate has declined to 14.4 percent of GOP in 2008-09 as against 13.5 percent of GDP last year. Domestic savings has also declined substantially from 16.3 percent of GDP in 2005-06 to 11.2 percent of GDP in 2008-09. The overall foreign investment during the first ten months (July-April) of the current fiscal year has declined by 42.7 percent and stood at $2.2 billion as against $3.9 billion in the comparable period of last year.

Foreign direct investment (private) showed some resilience and stood at $3205.4 million during the first ten months (July-April) of the current fiscal year as against $3719.1 million in the same period last year thereby showing a decline of 13.8 percent.

Private portfolio investment on the other hand showed a net outflow of $451.5 million as against a net inflow of $98.9 million during the comparable period of last year. US kept its distinction of being the largest investor in Pakistan with 23.2 percent stake in the FDI. Other big investors originated from Mauritius (10.0 percent), Singapore (7.7 percent), UK (6.9 percent), Switzerland (6.6 percent), UAE (5.3 percent) and Hong Kong (3.9 percent).

The communication sector (including Telecom) spearheaded the FDI inflows by accounting for 27.3 percent stake during July-April 2008-09 followed by financial business (22.4 percent), energy including oil & gas and power (22.7 percent), and trade (4.9 percent). The current wave of uncertainty in the global demand and economic activity in the country has a major backlash on FDI inflows.

2. AGRICULTURE: The agriculture growth this year is estimated at 4.7 percent as compared with 1.1 percent during 2007-08. Cotton production at 11,819,000 bates in 2008-09 has increased by 1.4 percent in comparison to 11655,000 bales of last year. Wheat production is estimated at 23.4 million tons in 2008-09 as against 20.9 million tons last year, showing an increase of 11.9 percent.

Rice production has increased from 5.6 million tons in 2007-08 to 6.9 million tons in 2008-09, showing a substantial increase of 24.9 percent. Sugarcane production has decreased by 21.7 percent in 2008-09 from 63.9 million tons in last year to 50.0 million tons in 2008-09.

Gram production at 760 thousand tons in 2008-09 has increased by 60.0 percent in comparison to 475 thousand of last year. Maize production has increased from 3605 thousand tons in 2007-08 to 4036 thousand tons in 2008-09, showing a increase of 11.9 percent.

As regards minor crops, the production of chillies, masoor and potatoes increased by 60.7 percent, 44.Spercent and 0.2 percent respectively .The chillies crop is mainly concentrated in Sindh where timely rain proved very beneficial. The production of mung, mash and onion decreased by 11.4percent, 20.8 percent and 4.6percent respectively.

The decrease in these crops is mainly due to reduction of area under such crops as the area of mung, mash and onion decreased by 6percent, 3.lpercent and 13.lpercent respectively. Agriculture credit disbursement of Rs 151.9 billion during July-March 2008-09 is higher by 9.6 percent, as compared to Rs 138.6 billion over last year.

The domestic production of fertilisers during the first nine months (July - March 2008-09) of the current fiscal year was up by 3.6 percent as compared with corresponding period last year. On the other hand, the import of fertiliser decreased by 51 percent, the off-take of fertiliser also decreased by 11.9 percent during the same period last year.

3. MANUFACTURING: Overall manufacturing posted a negative growth of 3.3 percent during the current fiscal year against the target of 6.1 percent and 4.8 percent of last year. Large-scale manufacturing witnessed a across the board decline of 7.7 percent during ongoing fiscal year against the growth rate of 5.2 percent last year.

Severe energy shortages, deterioration in domestic law and order situation, sharp depreciation m rupee vis-à-vis US dollar and most importantly, weak external demand on the back of global recession coupled with slowdown in domestic demand are responsible factors for sluggish performance of manufacturing sector.

Major items responsible for this negative trend in large scale manufacturing during the current financial year were vegetable ghee (8.2percent),cooking oil (3.Spercent), beverages(3.7percent), sugar (26.3percent),tea blended (0.Sopercent), Cotton yarn (0.3percent) & cotton cloth (0.3percent), petroleum products (9.2 percent), jeeps & cars (48.Opercent), deep freezer (17.7percent), refrigerator (12.2percent), TV sets (38.8percent), Bicycles (30.4percent), Buses (51.3percent), pig iron (12.4percent), upper leather (7.6percent), nitrogenous fertiliser (0.8percent). Production of a few items depicted increase in their production such as cigarettes (11.4percent), cotton (ginned) (1.4percent), liquids/syrups (1.7percent), phosphatic fertiliser (33.3percent), cement (4.7percent) and coke (51.7percent).

The mining and quarrying sector registered a growth of 1.3 percent during the current fiscal year against the target of 4.5 percent and 4.4 percent last year. Government of Pakistan privatised Hazara Phosphate Fertilisers Limited (HPFL) at Rs 1340.02 billion during current fiscal year.

4. FISCAL DEVELOPMENTS: The overall fiscal balance has recovered from a sizeable slippage of 2007-08 amidst substantial decline in revenues and elimination of some subsidies like on petroleum products. The tax to GDP ratio fluctuated in a narrow band of 10 to 11 percent for almost one decade. In the current fiscal year the potential risk exists of tax-to-GDP ratio below 10 percent of GDP for the first time in the last two decades.

In 2008-09 total revenue as percentage of GDP slightly recovered, due to a marginal improvement in non-tax revenues as percent of GDP. Total revenue is expected to reach at Rs 1910 billion, as compared to Rs 1499.5 billion during the 2007-08.

The gradual decline in excise duty is attributed to removal of its incidence on selected items. With excise comprising of 9 percent of total FBR revenues, Pakistan's tax revenue-to-GDP stood at around 9 percent of GDP during 2008-09. The indirect tax-to-GDP ratio stood at around 5 percent, and direct tax-to-GDP ratio at around 4 percent during 2008-09.

The FBR revenue collection for the fiscal year 2008-09 was targeted at Rs 1250 billion at the time of presentation of the Federal Budget 2008-09. Tax collection during the first ten months (July-April) of the current fiscal year amounted to Rs 898.6 billion, which is 17.7 percent higher than the net collection of Rs 763.6 billion in the corresponding period of last year. The net and gross collections have increased by 17.7 and 17.1 percent respectively.

Federal excise duty collections registered a vibrant growth of 27.6 percent. On the other hand 47 percent growth in sales tax on domestic economic activity has helped it to grow overall by 22.2 percent. When viewed in the backdrop of 23 percent growth in national income, the growth of 16.9 percent in direct tax looks dismal.

The FBR tax collection to GDP ratio is likely to deteriorate around 9 percent of GDP as against the target of bringing it in to the vicinity of 10 percent of GDP. Apart from FBR revenue, the total tax revenue growth also lagged behind the growth in nominal GOP, as it exhibits a decline in tax GDP ratio from 10.3 percent in 2007-08 to around 10 percent in 2008-09.

The budgeted total expenditure for the fiscal year 2008-09 was Rs 2391 billion, which is 4.9 percent higher than the last year's revised estimate. Development expenditure (after adjusting for net lending) was targeted at Rs 396 billion in 2008-09 which is up by 7 percent than last year. On the basis of revenue and expenditure projections, the overall fiscal deficit is estimated at Rs 562 billion or 4.3 percent of GOP as against 7.4 percent last year.

On the other hand current expenditures were envisaged to remain more or less stagnant at Rs 1876 billion. The stake of federal government in the current expenditure was to the extent of Rs 1359 billion and the remaining Rs 517 billion were earmarked for provincial governments.

Interest payments surpassed their budgeted level by a significant margin. A sum of Rs 557 billion was budgeted for interest payments in 2008-09. The year is likely to end with interest payments of Rs 618 billion which are higher by Rs 61 billion over budgeted amount.

5. MONEY AND CREDIT: During 2007-08, the SBP continued with tight monetary policy stance, thrice raising the discount rate and increased the Cash Reserve requirement (CRR) and Statutory Liquidity Requirement (SLR). During July-May 9, 2008-09, money supply (M2) decline to 4.59 percent against 8.96 percent last year.

Net Domestic Assets (NDA) was limited to just Rs 442.1 billion as compared to Rs 655.4 billion in FY08. During FY09 the slow expansion in private sector credit has led to the slower growth in NDA of the banking system. This is shared both by NDA of SBP and the scheduled banks.

Net Foreign Assets (NFA) of the banking system recorded a decline of over Rs 227.1 billion during the first ten months of the current fiscal year to May 9th. Government borrowing from the central bank has been dampened since December 2008 in line with the target set under the macroeconomic stabilisation programme as part of the IMF Stand-By Arrangement.

Government's budgetary borrowing from the banking system decreased by Rs 339.9 billion during July-May FY09 against an increase of Rs 360.4 billion in the corresponding period of FY08. Credit to private sector grew by Rs 21.8 billion during July-May FY09 as compared to Rs 369.8 billion during the corresponding period last year. The weighted average lending rate has risen by 210 bps during the same period accompanied by 180 bps addition in the deposit rates.

During July-December, 208 Khushali Bank, disbursed loans amounting Rs 1,9 billion (December 2008) as compared to Rs 2.6 billion in the same period last year. The share of all other microfinance banks in loan disbursement increased to Rs 2.6 billion (December 2008) from Rs 2.3 billion in July-March FY08. Microfinance Institutions have also disbursed amounting to Rs 10.4 billion as compared to Rs 12.9 billion.

6. CAPITAL MARKETS: During the outgoing fiscal year 2008-09, the benchmark stock exchange KSE-100 index demonstrated acute volatility owing to fluctuating outlook on political, macroeconomic and global grounds. The index closed at 7,367.6 points on May 29, 2009, down by 4,921.4 points (or 40 percent) from the end June position of the last year.

The KSE management and Securities and Exchange Commission of Pakistan (SECP) together took a number of regulatory actions to mitigate the potential technical risks confronting the equity markets, the most prominent being the imposition of price floor during August 27, 2008 to December 12, 2008.

Aggregate Market Capitalisation declined abruptly by Rs 1,621 billion, from Rs 3,777 billion in June 2008 to Rs 2,156 billion in May 2009. With no fresh merger and acquisition activity in the year 2008-09, the international investors remained keen to increase their ownership share. Foreign portfolio investment stood at a negative US $418.4 million during first nine months of the fiscal year 2008-09.

Dismal performance owing to a confluence of factors was exhibited by different sectors of the economy and the dull indicators left a weighty impact on the stock market activity during 2008-09.

The government carried out three government securities auction in the outgoing fiscal year and managed to issue Rs 48.9 billion of PIBs with 3&5 years due maturities amounting to Rs 16.2 billion, resulting in a surplus issuance of Rs 32.7 billion.

The Government of Pakistan issued its first 3-Year Ijara Sukuk Bond in the month of September 2008. So far, three auctions, one in each quarter, have been conducted by the SBP. Collectively, Rs 27.85 billion was mopped up against the total target of Rs 30 billion.

The National Savings Schemes (NSS) attracted Rs 173.3 billion in July-March 2008-09. Huge accruals were noticed in the case of Special Savings Certificates, Bahbood Savings Certificates, and Pensioners' Benefit Accounts. The deposit rates on all schemes offered under the NSS umbrella were revised in each quarter o the outgoing fiscal year. Three new floatation (corporate TFCs) were listed on KSE during the period under review.

Recent regulations by SECP that emphasise on increasing the minimum capital base and strict requirements for the classification of non-performing loans are anticipated to augment the strength of the Non Banking Finance Companies (NBFCs) sector. Significant progress has been made on capital market reforms, including adoption of international standards and market practices and the streamlining of regulatory infrastructure to enhance surveillance and enforcement.

7. INFLATION: The inflation rate as measured by the changes in Consumer Price Index (CPI) stood at 22.3 percent during the first ten months (July-April) of the current fiscal year, 2008-09, as against 10.3 percent in the comparable period of last year.

The food inflation is estimated at 26.6 percent and non-food 19.0 percent, against 15.0 percent and 6.8 percent in the corresponding period of last year. The Wholesale Price Index (WPI) during July-April, 2008-09 have increased by 21.4 percent, as against 13.7 percent of last year.

The Sensitive Price Indicator (SPI) has recorded an increase of 26.3 percent during July-April, 2008-09, as against 14.1 percent of last year. The increase in inflation rate during the current year 2008-09 is attributable to the increase in food price inflation which has been due to increase in prices of wheat, wheat flour, sugar, milk, poultry, meat, fresh vegetables and fruits.

8. TRADE & PAYMENTS: Overall exports recorded a negative growth of 3.0 percent during the first ten months (July-April) o the current fiscal year against positive growth of 10.2 percent in the same period of last year. ln absolute terms, exports have decreased from $15,222.9 million to $14762.2 million in the period.

Imports during the first ten months (July-April) of the current fiscal year (2008-09) decline by 9.8 percent compared with the same period of last year, reaching to $28.92 billion. Import compression measures lowering domestic demand coupled with massive fall in international oil prices have started paying dividends and imports witnessed slowdown. Beside that depreciation of rupee had also played a significant role for lower imports during current fiscal year.

Imports of the petroleum group registered declining growth of 7.6 percent and reached to $8012.7 million. The decline in imports of the petroleum group has been due to massive fall in oil prices in the international market. The imports of telecom decline by 54.8 percent during July-April 2008-09. This is followed by imports of consumer durables group which exhibits negative growth of 16.4 percent~ Petroleum group, Raw Materials and food groups witnessed a negative growth of 7.6 percent, 5.2 percent and 3.1 percent respectively. Import of machinery remained the only group which showed a nominal growth of 0.5 percent during July-April 2008-09.

According to data release by SBP, Trade deficit decelerated by 12.3 percent during July-April 2008-09 Pakistan's current account deficit (CAD) moved back o US $8.5 billion during Jul-Apr Fiscal Year 2008 09 against US $11.2 billion in the comparable period of last year, showing a decline of 23.5 percent.

In the month of February 2009, the current account witnessed a surplus of $128 million which is first monthly surplus since July 2007. This improvement contributed by deceleration in import growth due to lower imports in terms of quantity in the back of import compression measures and depreciation in rupee along with massive decrease in imports prices. Increase in workers remittance and reduction in services account deficit leads to improvement of invisible account.

Services account deficit shrank by 41.3 percent during Jul-April Fiscal Year 2008-09 to reach $3. billion. Financial account contracts from $6,224 million to $3,476 million during July-April 2008-09 against corresponding period last year.

Pakistan has witnessed pressure on ER during July-October 2008-09 when rupee depreciated by 16.3 percent. With signing of Standby arrangements with the IMF, the rupee got back some of its lost value and with substantial import compression, improvement in overall external balance including revival of external inflows from abroad the exchange rate havoured around Rs 80.50 during April 2009.

Worker remittances amounted to $6355.6 million in July-April 2008-09 as against $5319.1 in corresponding period last year, thereby showing an increase of 19.5 percent. Pakistan's total liquid foreign exchange reserves amounted to $11.6 billion by the end of May 2009.Of which, reserves held by State Bank of Pakistan stood at $8.28 billion and by banks stood at 3.32 billion.

9. EXTERNAL AND DOMESTIC DEBT: In relative terms, EDI as percentage of GDP increased from 28.1 percent at end-June 2008 to 30.2 percent by end-March 2009- an increase of 2.1 percentage points. This is the highest ever rise in a single year for almost one decade. A significantly depressed economic growth and massive depreciation of rupee against dollar partially explains this increase in EDL as a percentage of GDP.

Given the severity of the crisis in international debt capital markets, and hesitance with respect to investor confidence, Pakistan has not issued any new instruments in 2008-09.

Government of Pakistan successfully repaid the maturing $500 million Eurobond as well as $17 million on account of interest payments. This successful payment laid to rest any fears of Pakistan debt repayment capacity, and shored up investor confidence about Pakistan's ability to successfully manage its outstanding external debt obligations.

Total public debt increased by Rs 1367 billion in the first nine months of 2008-09, reaching a total outstanding amount of Rs 7268 billion; an increase of 23.2 percent in nominal terms. The increase in total public debt is shared between rupee and foreign currency debt in the ratio of 40:60.

The rise in foreign currency debt is mainly because of massive depreciation of the Pak rupee in the first quarter of the fiscal year. As a percentage of GDP, total public debt has decreased to 55.5 percent, a significant reduction from the previous year but still less than the required reduction of 2.5 percent as prescribed by the Fiscal Responsibility and Debt Limitation Act 2005.

On the internal front, borrowing from the State Bank of Pakistan continues to fuel increases not only in domestic inflation but also adding to the short-run domestic debt. Net zero borrowing from the SBP at the end of every quarter put restraint on the government's borrowing appetite from the SBP and the government successfully met this target in the last two quarters (October-March). The total domestic debt is positioned at Rs 3758 billion at end-March 2009 which implies net addition of Rs 484 billion in the nine months of the current fiscal year.

10. EDUCATION: Education is extensively regarded as a route to economic prosperity being the key to scientific and technological advancement. Hence, it plays a pivotal role in human capital formation and a necessary tool for sustainable socio-economic growth. Education also combats unemployment, confirms sound foundation of social equity, awareness, tolerance, self esteem and spread of political socialisation and cultural vitality.

The overall literacy rate (10 years & above) which was 55 percent in 2006-07 has increased to 56 percent in 2007-08, indicating 1.8 percent increase over the same period last year.

Male literacy rate (10 years & above) increased from 67 percent in 2006-07 to 69 percent in 2007-08 while it increased from 42 to 44 percent for female during the same period. Literacy remains higher in urban areas (7lpercent) than in rural areas (49percent) during 2007-08.

Province wise literacy data of PSLM (2007-08) shows Punjab to be on the top (59 percent) followed by Sindh (56 percent), NWFP (49 percent) and Balochistan (46 percent). According to the PSLM Survey data 2007-08, the overall school attendance (age 10 years and above) is S8percent (7lpercent for male and 46percent for female) in 2007-08 as compared to S7percent (69percent for male and 44percent for female) in 2006-07.

According to the Ministry of Education, there are currently 227,243 institutions in the country. The overall enrolment is recorded at 34.49 million with teaching staff of 1.27 million.

11. HEALTH AND NUTRITION: At present, there are 948 hospitals, 4794 dispensaries, 5310 basic health units and 908 maternity and child health centres in Pakistan. With availability of 133.956 thousands doctors, 9.012 thousands dentists, 65.387 thousands nurses and 103.037 thousands hospital beds in the country by 2008-09, the population and health facilities ratio works out at 1212 persons per doctors, 18010 persons per dentist, 2400 persons per nurse and 1575 persons per hospital bed which are compared well with the other developing countries.

During 2008-09, 35 basic health units and 13 rural health centres have been constructed. While 40 rural health centres and 850 basic health units have been upgraded. Some 4500 doctors, 400 dentists, 3200 nurses and 5000 paramedics have completed their academic courses and 4300 new beds have been added in the hospitals.

Some 96 thousands Lady Health Workers (LHWS) have been trained and deployed mostly in the rural areas. Moreover, some 8 million children have been immunised and 24 million packets of ORS distributed.

Various health programmes with a special focus on major public health problems have been carried out. These include cancer treatment, AIDS prevention and Malaria Control Programme. The total outlay on health is budgeted at Rs 74.0 billion (Rs 33.0 billion development and Rs 41.10 billion current expenditure) which is equivalent to 0.5 percent of GNP.

12. POPULATION, LABOUR FORCE AND EMPLOYMENT: The population of Pakistan is 163.76 in 2008-09. At the existing trend, the total population will reach 167 million by the year 2010 and 194 million by 2020 (NIPS). The life expectancy in Pakistan is 64.9 years.

About 2.72 million labour force is estimated as un-employed in 2008 with unemployment rate of 5.20 percent. Agriculture remains the dominant source of employment in Pakistan. The share of agriculture in employment has increased from 43.61 percent in 2006-07 to 44.6 percent by the year 2007-08 followed by manufacturing (12.99 percent), trade (14.6 percent), services (13.7percent).

To generate employment the government has started Skill Development Councils in order to meet the diversified training needs of the industrial and commercial sectors. SME Bank has financed 7,814 Small and Medium Enterprises, disbursing loans amounting to Rs 7,936 million to 54,698 beneficiaries in the country.

13. POVERTY: Economic growth has slowed down considerably during the last three years. The industry and construction sectors have contracted due to the domestic slowdown and energy shortage and also due to global recession. Thus job absorbing capacity of the economy has shrunk.

Based on the Federal Bureau of Statistics' PSLM data, the Center for Poverty Reduction and Social Policy Development (CPRSPD), Planning and Development Division estimated a sharp decline in the headcount poverty ratio for 2007-08. However, these findings appear to contradict other assessments conducted subsequently, and which better reflect global and domestic price developments after June 2008.
The Report of a UN Inter Agency Assessment Mission fielded during June-July 2008 found that food security in Pakistan in 2007-08 had significantly worsened as a result of food price hike. The total number of households falling into this category was estimated at 7 million.

The survey further indicates that more than 40 percent of households reported no change in income in 2008 since the year before. Forty five percent of the population working as employees witnessed decrease in their real wages. The Report shows an increase in the share of severely food insecure population, from 23 percent in 2005-06 to 28 percent in 2008. The Planning Commission's constituted Panel of Economists in its Interim Report based on 2004-05 poverty head count number of 23.9 percent suggested an increase of around 6 points in poverty incidence for the year 2008-09. Similarly, the Task Force on Food Security based on the World Bank estimates of poverty head count ratio of 29.2 percent in 2004-05 estimated that poverty head count increased to 33.8 percent in 2007-08 and 36.1 percent in 2008-09 or about 62 million people in 2008- 09 were below the poverty line.

The average projected GDP growth in developing countries in 2009 is now only about a quarter of what was expected before the financial turmoil intensified into a full-blown crisis in the latter half of 2008 and a fifth of that achieved in the period of strong growth up to 2007.

14. TRANSPORT AND COMMUNICATION: Pakistan has a road network covering 258,350 kilometers including 176,589 KM of high type roads and 81,761 KM of low type roads. During the out-going fiscal year, the length of the high typed road network increased by 1.3 percent but the length of the low type road network declined by 2.7 percent because most of low type roads have been converted to high type roads. Road density at present is 0.32km/km2. Karachi Port Trust handled a total of 21.4 million tons of cargo during current fiscal year, depicting a growth rate of 44.3 percent.

Port Qasim Authority handled 18.01 million tons cargo during the current financial year 2008-09, depicting a shortfall of 9percent over Jul 07- Mar 08 owing to global economic crisis.

Pakistan National Shipping Corporation (PNSC) lifted 5762.2 million tons of liquid cargo and 865.0 million tons of dry cargo during the current fiscal year. PIA international passenger traffic, excluding Hajj, registered an increase of 3.5 percent from 3,069,717 passengers during 2008 over 2,964,830 passengers last year despite the seat (capacity) reduction of 2.3 percent. On domestic routes passenger traffic registered an increase of 3.6 percent from 2,239,815 passengers during 2008 over 2,160,589 passengers last year despite the seat (capacity) reduction of 7.4 percent.

Telecom sector of Pakistan exhibited positive but slow growth in terms of revenue, subscribers and tele-density. Total tele-density reached 60.6percent during the current year. Cellular Market added 3,422,599 subscribers with average of 0.3 million per month and total subscribers reached 91.4 million. Currently number of cities/towns/villages covered stands at 10,001 while 26,300 cell sites were installed by all cellular operators.

Total fixed line subscribers in Pakistan stood at a total of 3.7 million as of March, 2009, yielding total tele-density of 2.3percent. Today there are 384,187 fixed, mobile and WLL payphones available across the country. There are currently 267,180 broadband subscribers showing almost 59percent growth in 6 months time.

15. ENERGY:

Crude Oil: Production of crude oil per day has decrease to 66,531 barrels during July-March 2008 09 from 70,165 barrels per day during the same period last year, showing a decrease of 5.2 percent.

On average, the transport sector consumes 51.6 percent of the petroleum products, followed by power sector (33.1 percent), industry (10.3 percent), household (1.7 percent), other government (2.1 percent), and agriculture (1.1 percent) during last 10 years ie 1998-99 to 2007-08.

Natural Gas: The average production of natural gas per day stood at 3,986.5 million cubic feet during July-March, 2008-09, as compared to 3,965.9 million cubic feet over the same period last year, showing an increase of 0.5 percent. On average, the power sector consumes 37.2 percent of gas, followed by industrial sector (20.4 percent), fertiliser (19.8 percent), household (16.8 percent), Transport (2.0), commercial sector (2.7 percent) and cement (1.0 percent) during.

Electricity: The total installed generation capacity has increased to 19754 MW during July-March 200809 from 19566 MW during the same period last year, showing a marginal increase (1.0 percent). Total installed capacity of WAPDA stood at 11,454 MW during July-March 2008-09 of which, hydel accounts for 57.2 percent or 6,555 MW, thermal accounts for 42.8 percent or 4899 MW. The number of villages electrified increased to 133,463 by March 2009 from 126,296 5by March 2009, showing an increase of 5.7 percent.

CNG: Presently, some 2,700 CNG stations are operating in the country. By March 200 about 2.0 million vehicles were converted to CNG as compared to 1.70 million vehicles during the same period last year, showing an increase of 17.6 percent. With these developments Pakistan has now become the largest CNG using country.

Environment: Government of Pakistan has declared 2009 as the National Year of Environment. In this regard the current year was kicked off with a Regional level workshop on Climate Change, which was inaugurated by the Prime Minister of Pakistan.

The PRSP II released in February 2009, has aligned itself with Millennium Development Goal 7, which is specific to environmental sustainability. Its targets include; integration of the principles of sustainable development into country policies and programmes and reversing the loss of environmental resources, such as including: biodiversity conservation, climate change mitigation and adaptation, phasing out ozone depletion substances; sustainable access to safe drinking water, sanitation and hygiene; controlling outdoor and indoor air pollution, reduction of vulnerability to natural disasters, and significant improvement in the lives of squatter settlement dwellers eg by providing access to secure tenure.

Pakistan has become the largest user of Compressed Natural Gas (CNG) in the world, as per the statistics issued by the International Association of Natural Gas Vehicles (IANGV). Presently, more than 2 million vehicles are using CNG as fuel and 2,760 CNG stations are operational in different parts of the country (as on April 2009).

The Ministry in collaboration with UNICEF, Water & Sanitation Programme (World Bank), Water Aid, Rural Support Programme Network (RSPN) etc, launched awareness and training programmes in the year 2008, the International Year of Sanitation (IYS 2008).

It is estimated that the country's forest area stood at 5.3 percent during 2007-08. The President of Pakistan launched a Mass Afforestation Programme on December 22, 2008. This programme will be spread over a period of five years and shall largely be sponsored by private entrepreneurs for planting trees on state and other suitable lands.

The Government in collaboration with various concerned organisations has recently initiated the Technical Advisory Panel (TAP) on Climate Change. The official launch of the TAP was held on February 15, 2008.

^^
1. Thanks buddy!

abidi2009 Ji :

You are welcome.



2. Economic Survey 2008-09 : Highlights (http://www.brecorder.com/index.php?id=922167&currPageNo=1&query=&search=&term=&supDate=)

TEXT (June 12 2009) :

1. GROWTH AND INVESTMENT:
.
.
Pakistan's per capita real income has risen by 2.5 percent in 2008-09 as against 3.4 percent last year. Per capita income in dollar term rose from $1042 last year to $1046 in 2008-09, thereby showing marginal increase of 0.3 percent. Real private consumption rose by 5.2 percent as against negative growth of 1.3 percent attained last year.

I refer you to the following :

Quote

Per capita income falls to $1,071 (http://thenews.jang.com.pk/print1.asp?id=178609)

Thursday, May 21, 2009
Mehtab Haider

ISLAMABAD : Pakistan’s per capita income fell to $1,071 in 2008-09 compared to $1,102 in the previous fiscal year, show official figures, which will be released in the upcoming Economic Survey for 2008-09, but available with The News.

Unquote

Whereas per the Article the Pakistani Per Capita Income last year was USD 1,102 and fell to USD 1,071 for 2008-2009, according to the Economic Survey 2008-2009 the figure for last year was USD 1,042 which rose to USD 1,046 in 2008-2009.

Could you please explain these differences as if you look at the Article in conjunction with the Economic Survey then it seems that Last Year's Per Capita Income was USD1,102 which has fallen to USD 1,046 as per the Economic Survey 2008-2009, i.e. the Per Capita Income fall from last year to 2008-2009 is USD 56 which is over Five Per Cent.

Thanks in Advance

Cheers:cheers:

^^
Poor govt and nothing,
Govt said that poverty is b/w 35-40%, then world bank reported that poverty in pakistan is below 17.7%

http://www.pr-inside.com/images/pics/212715-responsible-reporting-remains-a.JPG
SAMAA TV- Pakistan's leading Urdu News Channel

Karachi, 12th June – SAMAA TV, one of Pakistan’s leading Urdu news channels today presented a project model to Dr. Ishrat Ul Ebad, Governor Sindh to address the unemployment issues in the Sindh province.

The proposed project is an employment drive and entails specially designed shops, completely free of cost for needy and unemployed citizens of Sindh. The project model will
work on self-sustainable operations for shop runners and the shops will be placed in all major high traffic areas, parks, markets, roundabouts etc. and contain general sales items for the visitors. SAMAA TV will also provide the first stock edible items to the shop runners. The monthly revenue forecast for the shop runner is estimated to be approximately Rs. 15,000 per month.

The presentation was given by Mr. Naeem-Uddin Syed, Executive Director New Initiatives of SAMAA TV. Mr. Naeem said that the province of Sindh provides enormous opportunities for growth & development for individuals as well as for organizations. He said that SAMAA TV and the Sindh Government will work in solidarity and join hands together for the social uplift of the unprivileged class.

To ensure transparency of selection of shop keepers, a Committee will be established including nominated officials of SAMAA TV and Sindh Government. This committee will select the needy and unemployed persons as shop runners. The Sindh Government will ensure that the selected shop keepers are provided a secure place for to start their business. The selected shop runners will be given full responsibility of the shop maintenance, which would also be monitored by the Sindh Government and SAMAA TV nominated representatives.

The project, a joint initiative of Sindh Government & SAMAA TV will be addressing the unemployment issues ranging from the streets of Karachi, Hyderabad, Sukkur, Larkana and Mirpur Khas.

Speaking to Mr. Amir Jahangir, Chief Executive Officer of SAMAA TV, he said that the unemployment rate in Sindh is mounting, both in the urban and rural areas and depriving the youth of any hope for their future. “We need to create opportunities to further enhance the job opportunities among our youth so that they can generate income and improve the quality of life for themselves and their dependents”.

Mr. Jahangir stated that according to the World Bank report, “Securing Sindh’s Future-The Prospects and Challenges Ahead”, the report paints a very grim picture of unemployment in Sindh, as it reveals that due to growing population, rise in literacy and migration, more than 600,000 additional people would be entering in job market each year in Sindh. This is in contrast with the long-term annual job creation rate of 350,000 in the province.

Mr. Jahangir said that “We need to jointly devise a comprehensive strategy to tackle the challenge of unemployment especially in rural areas and execute long-term strategies for creating job opportunities for rural and urban youth to reach out to national and international job markets. I believe that this joint drive will definitely accelerate the dream of Sindh progress.”

According to State Bank reports, out of an estimated 40 million population, six per cent or more than two million are jobless. They are roaming in the cities and villages in search of jobs, at least a quarter of this unemployed force-half a million-is educated and many of them are graduates, post graduates, technicians, engineers and professionals trained in accounting and management. Sindh boasts of 49 per cent urbanization and 54 per cent literacy in the urban areas. The provincial migration through which the labour continues to migrate from Punjab and NWFP into Sindh has further aggravated employment situation in Sindh and is resulting in transfer of resources.

SAMAA TV is one of Pakistan’s leading private satellite television channels, which takes pride in its fair, factual and independent news coverage through its on-the-hour bulletins, breaking stories, incisive political analysis and current affairs programs. The channel has also made a niche for itself through its programs on women and youth issues besides infotainment and sports. SAMAA TV, launched in December 2007 has network of district correspondents and 5 bureaus across Pakistan along with international stringers in the Middle East, Europe and North America.

http://www.pr-inside.com/samaa-tv-takes-on-new-initiatives-r1318300.htm

Thanks God they went to Governor not to CM.

^^
Poor govt and nothing,
Govt said that poverty is b/w 35-40%, then world bank reported that poverty in pakistan is below 17.7%

abidi2009 Ji :

I think this Article gives a detaile analysis of the "Economic Situation" which has a bearing on the "Drop" in the Per Capita Income :

Economy shows negative growth in dollar terms (http://www.dailytimes.com.pk/default.asp?page=2009/06/13/story_13-6-2009_pg5_1)

* Experts point at fudging figures

KARACHI : Pakistan’s economy has shown negative growth in dollar terms owing to the depreciation of rupee against the greenback and experts have said that the Gross Domestic Product (GDP) growth figures were fudged.

The GDP grew by 2 percent during the current fiscal year, claims the government. This growth rate was achieved by revising the previous year’s GDP growth rate from 5.8 percent to 4.1 percents. Economists say that this revision has been done very late. “Normally the figures are revised within three to four months,” says Dr Shahid Hassan, a renowned economist. “This is clear evidence of fudging : either the growth rate of 5.2 percent was fudged or the revised rate is fudged,” he added.

Regarding the performance of the economy, he says: “This performance can be summed up in one word—disastrous.” Shaukat Tareen, the advisor to the PM on finance, had admitted during May this year that the 2.37 percent GDP growth estimate for current fiscal year worked out by the Federal Bureau of Statistics and endorsed by National Accounts Committee was fudged as they had not included the largest ever negative growth witnessed by the large-scale manufacturing. The government released the Economic Survey of Pakistan on Thursday, which did not mention the contraction of economy in dollar terms. Nor did it say anything about the “methodology” according to which the growth rate of 2 percent was achieved.

The GDP growth declined to 2 percent in the current fiscal year from an average of 7 percent in the past six years. “This would have come in even lower, at 0.4 percent, had officials not revised the GDP numbers for the previous fiscal year,” says Sayem Ali, Country Economist at the Standard Chartered Bank. The economy shrank to $161 billion in FY09 from $165 billion in FY08, reflecting the 18.4 percent decline in the value of the Pakistani rupee (PKR) in the last 12 months.

However, with GDP growth at three percent and inflation at nine percent the economy is expected to grow in dollar terms for the next fiscal year as the rupee is expected to remain in the band of Rs 84 to Rs 86 a dollar, which is five percent depreciation only. The saving grace for the economy has been the positive performance of the agricultural sector which expanded by 4.7 percent on account of bumper wheat and rice crops. Higher support prices and water availability have helped to improve farm output and support more than 2.2 million workers involved in the rural economy.

Regarding the medium-term future of the economy, Ali says that persistently high inflation, tough measures taken under the IMF programme, and the rising security-related expenditure are weighing heavily on the economy. The economy is slowing to a near-halt, he says. “Pakistan’ economy is slipping into recession,” he says. “The policy fous needs to shift from stabilisation to growth in order to avoid this situation.” The government went to the IMF for a $7.6 billion loan in November 2008 as it faced a balance-of-payments crisis and quick depletion of foreign exchange reserves. The subsequent build-up of forex reserves and a stable rupee have helped to bring down inflation and allow the government to meet its external debt obligations. saad khan

Cheers:cheers:

Islamabad, June 13 (IANS) Pakistan has allocated Rs.646 billion ($8 billion) for the public sector in its budget for fiscal 2009-10 beginning July 1 that envisages GDP growth of 3.3 percent for the year.
Of this, Rs.421 billion will be spent on federal government projects and Rs.200 billion by the provinces through their annual development programmes, while an allocation of Rs.25 billion has been made for earthquake victims’ rehabilitation.

The budget documents were tabled Saturday in the National Assembly, the lower house of parliament.

A major initiative in the infrastructure sector will be to build small and large hydro power projects and dams to overcome the country’s energy crisis, APP news agency reported.

Toward this, the government has allocated about Rs.67.59 billion for the water and power sectors with special aim of build water reservoirs to overcome the energy crisis.

The budget documents envisage providing facilities to the private sector to invest by creating an enabling environment and promote a knowledge-based economy through the development of appropriate human and physical infrastructure.

During the fiscal year 2008-09, Pakistan’s main emphasis was to ensure economic stability after a period of policy inaction had seen deterioration in the country’s macroeconomic indicators.


http://www.thaindian.com/newsportal/south-asia/pakistan-allocates-rs646-bn-for-public-sector-in-2009-10_100204546.html

ISLAMABAD: Government on Saturday unveiled the Federal Budget for the fiscal year of 2009-10 with a total volume of Rs. 2.89 trillion and record deficit of over Rs 722 billion near 5 Per cent of the Gross domestic Product (GDP).

For the first time in country’s Parliamentary history, a woman Hina Rabbani Kher, who is State Minister for Finance and Economic Affairs, tabled the budget in the National Assembly.

Despite economic crises and Pakistan’s economic loss of over $ 35 billion in war against terrorism, the minister said, Government has raised the salaries of Government employees by 15 per cent and allocated Rs. 50 billion for rehabilitation of internally displaced people and Rs 70 billion for Beanzir Income Support Programme to help deserving families.

In order to overcome economic challenges, she said, Government has introduced 9 Points agenda. "The best way to decrease poverty is to decrease inflation. Inflation is now at 14 per cent but it would be brought to single digit", she said.

Unfortunately no concentration was given on agriculture sector during regime of last Government, which directly affected the common people, but the incumbent Government is fully aware of challenges being faced by the masses, she said.

The Government is now focusing on agriculture and industrial sector, which will bring a revolutionary change in country’s economy, she said. "Our government wants to improve living standard of poor segment of society. I want to discuss about the nine point agenda which the Government has made. Macroeconomic support targeting the poor and vulnerable", she said.

"The total budget deficit will be only 3.4 percent. Pakistan is among countries where taxes are extremely low. Being a nation we have not adopted a culture of giving taxes. Being responsible citizens we all have to pay taxes", she said.

"We are introducing revolutionary changes in tax collection but it will only be possible with cooperation of masses. Rather than imposing taxes on the people who are already paying we are expanding tax bases. Capital value tax will only be imposed after having it discussed in NFC and after having recommendations from all Provinces", Hina said.

Government expects GDP at 3.3 percent in the financial year 2009-10 but it will be possible with 3.8 percent growth in agriculture sector, 1.8 percent in industrial sector and 3.9 percent services, Hina said.

She said that the Government will take all necessary measures to expand tax base while collection in taxes is expected to grow from 9 percent to 9.6 percent.

The previous regime expected that through the trickle down effect, poor would benefit, however, in the end the poor become poorer and rich became further richer, she said.

In order to address poverty, she said, BISP was introduced. In financial year 2008-2009, 1.8 m families were given Rs. 22 b but in the upcoming financial year it has been increased by 200 percent. The BISP in a short span of time will become a major source of supporting the poor. Government would also adopt new policies and introduce new programmes to help poor. The government wants to ensure transparency in the BISP, she said.

The State Minister said that the Government plans to introduce social protection for Sindh Haris.

"A support quota for marriage of Girls has been abolished and now Girls of the family can obtain support form this programme. The amount has been increased to Rs. 50000 to 70000 for each Girl", she said.

"Our visionary leader four decade ago raised slogan of food, clothes and shelter. We are working on this agenda. The information minister has also announced residential programme for journalists", she said.

She further that the Government is working to provide food security and along with agriculture, attention will also be paid to livestock sector. "Research and development facilities will Provided for these two sectors. We will also expedite production of livestock, fishery and other related sectors", she said.

The State Minister for Economic Affairs further stated that attention will be given to grow organic food and 10 model dairy councils will also be established.

"Measures taken by the government have begun yielding results with the bumper production of wheat and rice", added by the minister.

Talking on irrigation, the minister said that to improve this, National Programme on farm water was implemented and funds have also been allocated for irrigation and removing slit from canals, adding Rs. 15 billion has been allocated for this purpose.

She said: "The government is also focusing on building small dams along with large dams, adding Mangla Dam raising and construction of several other dams have been initiated.

"Canals in Sindh, Punjab and NWFP are being brick lined to save water wastage and it will cost Rs. 37 billion", said by the minister and adding that to support small farmers Rs. 4 billion have been allocated in Benazir Tractor Programme for 2 years.

"The government is also introducing model village in which uniting the farmers at villages level and their access to agricultural loans is focused. To increase production of meat a programme is being initiate at cost of Rs. 300 million", added by the minister.

Hina Rabbani Khar said that the government will also work to end sanctions by EU on fishermen and will also work to improve boats used in fishery.

She underlined that to deal with this situation, financial year 09-10 has been announced as a year of industrial revival and the government has already allocated Rs. 2.5 billion for small industry.

The government has also allocated Rs. 10 billion for the poor people who want to start their business and the loan will be available on soft terms.

In this budget the government has allocated Rs. 3.1 billion for science and technology departments. No new taxes are being levied on the industry expect tobacco industry.

The government has also taken initiative to help the cellular industry and charges on SIM have been decreased from Rs .500 to Rs. 250.

She said that export centers will be set up to improve exports of the country and negotiation will done with the US for this purpose.

"The government is implanting transparent policy of private public partnership and privatization", she added.

The minister said that Rs. 12.7 billion apportioned to improve railway infrastructure while the power minister has introduced an integrated energy plan which is first of its kind in the Pakistan and the an amount of Rs. 91 billion allocated for PEPCO to pay to the IPPs.

She underlined that projects are also being initiated to improve transmission and distribution of power. There are also 15 IPPs under construction at the moment. Also 16 hydro power production projects are being initiated.

A media campaign has been launched to raise awareness regarding power saving, Hina said, added, the Government has also allocated Rs. 4 billion for Diamer Bhasha Dam.

We are introducing comprehensive renewable energy Projects While the new projects we are introducing are a mixture of hydro, coal, solar and wind sources, she added. The minister said, developing human resource is basic to improve social and economic indicators and the Government is improving planning and implementation in the education sector and it is also working to improve capacity of education and building school committees for this purpose.

Under the PSDP 66 percent budget has been increased in the health sector and now Rs. 23.5 billion is being provided in this sector, she said.

"We also suggest removing import tax on wheelchairs. Clean water is essential for better health. To provide clean water so far 600 filtration center have been setup. Pakistan has signed CEDAW and will work for gender equality. For this purpose, it has allocated Rs. 44.7 billion which was in the pervious year at Rs. 7 billion".

"The BISP is also encouraging gender equality. The gender mainstream programme is going on and we are also working on gender building. A separate ministry has been setup for human rights. Under a internship Programme, 30,000 fresh graduates will be provided an opportunity of internship at the cost of Rs. 3.6 billion", she said.

The Government also wants to promote sports so that children and youth have recreational activities. The federation has also provided Rs. 500 million to provinces into the programme of access to justice and under this programme public defenders and free legal aid will be provided, she said. "Salaries in public sector will also be brought at power with the private sector gradually. In this regard pay and pension sector had already been initiated and competent persons in public sector will be given opportunity of employer of choice", she said.

She said "15 percent increase will be given in pensions to ex-army servicemen. The national saving scheme and statistics bureau will be made into departments. In the current budget Rs. 708 billion have been allocated for provinces. While for the federation Rs. 1.3 billion have been allocated".

This is the first time after 1964 that the defense budget has been presented in the parliament and first time in Pakistan’s history the leader of the opposition has made head of the Public Accounts Committee, the minister added..

Hina Rabbani said Government is introducing carbon surcharge in this budget and to discourage smoking we have increased tax on tobacco by which Government will get Rs. 15 billion.

The tax policy is based on fair and equitable and taxing those who can pay it. In order to expand tax base there is suggestion to increase capital value tax on properties from 2 percent to 4 percent and it has been suggested that person receiving more than Rs. 1 m should be taxed 30 percent, she said.


http://www.onlinenews.com.pk/details.php?id=146730

Pak to go to IMF for $4b loan : Tarin (http://www.thenews.com.pk/updates.asp?id=80523)

ISLAMABAD : Advisor to Prime Minister on Finance Shaukat Tarin said the burden of subsidies has been removed from the budget.

Addressing a post-budget conference along with State Minister for Finance Hina Rabbani Khar, he said the economy was affected by the war against terrorism, mistrust in market and low foreign investment.

The adviser signaled going to International Monetary Fund once again for $4 billion, in case Friends of Pakistan fail to give help.

He said there are clear indicators that economy is building up, adding to bring down the budget deficit to Rs120 billion, expenditures have been curtailed and unnecessary products were removed from imports.

The growth rate remained 2 percent this year which will be upped to 3 to 4 percent, the Adviser Tarin said adding the fiscal deficit of the total budget will be 4.9 percent, the actual budget deficit is 3.4 percent, ‘the budget deficit will be met with the help of friend countries.’

The inflation rate will come to 13 percent by the end of June and rigid monetary policy helped curtail it, he said adding inflation was brought down to 14 percent from a peak 25.3 percent.

Tarin said the government paid Rs200 billion to the State Bank.

The current growth rate is 3 percent that will be taken up to 4 or 5 percent next year, he added.

60 percent of revenue is generated from the manufacturing industry, which went down 3 percent reduction causing setback to economy.

Cheers:cheers:

View budget details and share your observations and give valuable feedback.

http://economicpakistan.wordpress.com/discuss-budget/

do you guys get interest free loans?

Anyone's got the figures of city GDP for cities in Pakistan? I am mostly interested outside of the major 3 cities (Khi, Lhr, Isb).

May be Inty or Naresh would know :dunno:

Pak to go to IMF for $4b loan : Tarin (http://www.thenews.com.pk/updates.asp?id=80523)

ISLAMABAD : Advisor to Prime Minister on Finance Shaukat Tarin said the burden of subsidies has been removed from the budget.

Addressing a post-budget conference along with State Minister for Finance Hina Rabbani Khar, he said the economy was affected by the war against terrorism, mistrust in market and low foreign investment.

The adviser signaled going to International Monetary Fund once again for $4 billion, in case Friends of Pakistan fail to give help.

He said there are clear indicators that economy is building up, adding to bring down the budget deficit to Rs120 billion, expenditures have been curtailed and unnecessary products were removed from imports.

The growth rate remained 2 percent this year which will be upped to 3 to 4 percent, the Adviser Tarin said adding the fiscal deficit of the total budget will be 4.9 percent, the actual budget deficit is 3.4 percent, ‘the budget deficit will be met with the help of friend countries.’

The inflation rate will come to 13 percent by the end of June and rigid monetary policy helped curtail it, he said adding inflation was brought down to 14 percent from a peak 25.3 percent.

Tarin said the government paid Rs200 billion to the State Bank.

The current growth rate is 3 percent that will be taken up to 4 or 5 percent next year, he added.

60 percent of revenue is generated from the manufacturing industry, which went down 3 percent reduction causing setback to economy.

Cheers:cheers:

Son of a ...

:ohno:

Anyone's got the figures of city GDP for cities in Pakistan? I am mostly interested outside of the major 3 cities (Khi, Lhr, Isb).

May be Inty or Naresh would know :dunno:

Click on the "GDP Share" link on my sig. I only have figures for Khi, Lhr & Fsd. Spent a lot of time last year looking for figures for other cities. But couldn't find anything.

2005:

Karachi: $55 bn

Lahore: $28 bn

Faisalabad: $10 bn

Predicted for 2020:

Karachi: $127 bn

Lahore: $67 bn

Faisalabad: $24 bn

Predicted Growth Rates 2005-2020:

Karachi: 5.8%

Lahore: 5.9%

Faisalabad: 6.0%

2005:
http://www.citymayors.com/statistics/richest-cities-2005.html

2020 & Growth Rates:
http://www.citymayors.com/statistics/richest-cities-2020.html

Country’s forex reserves improve by $430 mln (http://www.geo.tv/7-9-2009/45675.htm)

KARACHI : Pakistan's total liquid foreign exchange reserves stood at $12,269.8 million on July 4, 2009, State Bank of Pakistan said on Thursday.

According to break-up, foreign reserves held by SBP were $8,963.8million while net forex reserves held by banks (other than SBP) $3,306.0 million.

Cheers:cheers:

Yea after gettion a 500 million dollar loan today from ADB!!!

Lets borrow ourselves to prosperity woohoo!

Pakistan’s Stocks May Gain, Follow World’s Best Bonds (Update3)
Share | Email | Print | A A A

By Pooja Thakur and Lilian Karunungan

June 18 (Bloomberg) -- Pakistan, wracked by a war with Taliban insurgents and a record current-account deficit, is this year’s best bond investment, according to JPMorgan Chase & Co. indexes. Money managers say the stock market, the region’s cheapest, may be next.

Dollar-denominated debt sold by Pakistan returned 88 percent so far this year, more than any of the 45 emerging markets tracked by New York-based JPMorgan and 19 developed countries followed by Merrill Lynch & Co. Shares in the Karachi Stock Exchange 100 Index trade at 9.5 times reported earnings, the lowest in Asia excluding Japan, after the gauge rose 20 percent in 2009.

Pakistan’s economy deteriorated in the past year as terrorist attacks led investors to sell a net $1.1 billion of stocks in the 11 months ended May 31, compared with purchases of $87.2 million of shares a year earlier, according to the central bank. Government forecasts for 3.3 percent economic growth in the year starting July 1, a bailout by the International Monetary Fund and equities trading near the cheapest levels in at least four years are making the country more attractive.

“The worst is over for the Pakistan markets,” said Tariq Iqbal Khan, who manages the equivalent of $865 million in stocks as chief executive officer of government-owned National Investment Trust in Karachi, the nation’s biggest money manager. “Values are so good at the moment because the sentiment was so over-depressed. I see some buoyancy returning to the market.”

MSCI’s Removal

Just six months ago, MSCI Inc., whose indexes are tracked by money managers with $3 trillion of assets, removed Pakistan from its emerging-market gauge, citing a “near total paralysis” in trading.

The Karachi bourse had imposed limits on daily price swings after investors stoned the exchange and smashed windows to protest declines in share prices.

Pakistan has been hit by more than 25 bombings since the military began a campaign against insurgents in the northwestern Swat Valley seven weeks ago. Authorities say many were orchestrated by Pakistani Taliban commander Baitullah Mehsud and troops have expanded their offensive into the South Waziristan tribal district where his forces are based. The army moved in after the Taliban advanced to within 100 kilometers of the capital, Islamabad.

‘Short of Everything’

Pakistanis in a northwestern region devastated by fighting between the Talibans and security forces are “short of everything” and in urgent need of assistance, the International Committee of the Red Cross said in a statement yesterday.

The government said last week it won’t meet its budget- deficit target as spending to fight insurgents increases.

Pakistan was forced to turn to the IMF in November after foreign reserves shrank by 75 percent, the current-account deficit widened to a record and inflation soared to a three- decade high.

While South Asia’s second-biggest economy may accelerate from 2 percent growth in the past year, it will expand at less than half the average annual pace of 6.8 percent over the preceding five years.

The budget gap for the year starting July 1 is estimated at 4.9 percent of gross domestic product, the government said on June 13. That breaches the 4.6 percent goal set by the IMF as part of its $7.6 billion bailout.

‘Concerned’

“I’m concerned the budget and political problems are too big at the moment,” said Stefano Costagli, an emerging-market fund manager at San Miniato, Italy-based Vegagest SGR SpA, which manages the equivalent of $2.5 billion. “I don’t like countries that rely too much, or too long, on that support.”

Declining interest rates and slower inflation will help boost stocks, National Investment’s Khan said. He expects the benchmark interest rate, now at 14 percent, to fall by at least 2 percentage points next month. Inflation may slow to less than 10 percent from 14 percent over the next two to three months, according to Khan.

“We’re not seeing a major turnaround in the economy but as interest rates come off, that’s when you will see genuine interest coming back to stocks,” Nasim Beg, who helps manage the equivalent of $160 million at Arif Habib Investments Ltd. in Karachi, said in an interview today. “So we expect good upside for stocks.”

‘Strong Positive Stimulus’

Beg, whose Pakistan Stock Market Fund doubled in the past five years, is the best performer among 29 funds that invest in the country’s equities, according to data compiled by Bloomberg. He estimates the stocks in his funds are 30 percent less than their fair value, declining to name individual companies.

Citigroup Inc. said in a report June 15 that Pakistan is too reliant on foreign funds and lacked “strong positive stimulus,” which may limit gains. The Karachi index has gained 2.8 percent for the quarter, the worst performance in Asia, according to data compiled by Bloomberg. The measure fell 0.3 percent to 7,051.77 at the close.

Aberdeen Asset Management Plc in London is bullish about Pakistan because the country is a beneficiary of international support. The U.S. House voted on June 11 to triple economic and development aid and to increase military assistance to stabilize a country vital to the war in neighboring Afghanistan.

“We are positive,” said Edwin Gutierrez, who helps oversee $4.5 billion of global emerging-market debt at Aberdeen Asset Management Plc in London and added Pakistan dollar bonds to his funds earlier this year. “It was pretty clear that the international community is supporting Pakistan and providing it with a decent amount of money.”

To contact the reporters on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net; Lilian Karunungan in Singapore at lkarunungan@bloomberg.net.

Last Updated: June 18, 2009 07:09 EDT

ISLAMABAD: The Federal Bureau of Statistics has released the contribution of different sectors in the Gross Domestic Product (GDP) of the country which show that the share of commodity producing sectors-agriculture, industrial electricity, gas-in the GDP has declined from 47 percent in 2007-08 to 46.2 percent in last fiscal year 2008-09.

The share of industrial sector in the GDP has declined from 25.7 percent in 2007-08 to 24.3 percent and due to the better performance of the agriculture sector; the share of agriculture in GDP has increased from 21.3 percent to 21.8 percent, according to the latest position of different sectors in GDP developed by Federal Bureau of Statistics.

Growth in commodity producing sectors is vital as growth in this sector creates new job opportunities in the country. Decline in the share of commodity producing sectors in GDP results in joblessness and unemployment in the country. The decline in this sector has made hundreds of thousands of laborers jobless. The prime focus of the government is to enable the commodity producing sector increase its growth rate in 2009-10 and create new job opportunities in the country, explained an official at Planning Commission.

The export-oriented industrial sector was witnessed harsh times both due to domestic structural constraints like power and gas shortage. The international scenario does not bodes well for this vital sector as the financial crisis has jolted the economies of EU and US, which are the major demand drivers of Pakistan's export-oriented industries.

Industrial Sector: This sector's contribution in GDP was 23.3 percent in 1999-2000, which increased to 26.3 percent in 2004-05. However, due to the persistent power shortages and other factors its share declined to 25.7 percent in 2007-08 and further decreased to 24.3 percent in 2008-09.

Within the industrial sector the share of mining and quarrying in GDP that was 2.6 percent in 2007-08 declined to 2.5 percent in 2008-09. Similarly, share of manufacturing declined by 1 percentage point from 19.2 percent to 18.2 percent of the GDP due to the power, gas shortages and other factors in 2008-09.

Large Scale Manufacturing (LSM) contributions in GDP were recorded at 13.4 percent in 2007-08, which declined to 12.1 percent of the GDP in 2008-09. Small-scale manufacturing and household share has increased from 4.4 percent of the GDP to 4.7 percent of the GDP in 2008-09. Slaughtering was contributing 1.3 percent in GDP in 2007-08 has now increased its share to 1.4 percent of the GDP in 2008-09. Construction sector's share, which is known as major facilitator of 26 allied industries, in GDP has decreased from 2.4 percent of the GDP to 2.1 percent of the GDP in 2008-09. The share of electricity, gas and water supply in the GDP have declined from 1.6 percent of the GDP in 2007-08 to 1.5 percent of the GDP in last fiscal year 2008-09.

Agriculture Sector: The contributions of agriculture sector in GDP were 25.9 percent in fiscal year 1999-2000 that declined to 21.3 percent in the previous fiscal year 2007-08, however, due to the better performance of sector as a whole, its share has risen again to 21.8 percent.

Within the agriculture sector crops share have increased from 9.5 percent to 9.9 percent due to the batter performance of wheat crop. Share of major crops have increased from 6.9 percent to 7.3 percent and share of minor crops have remained stagnant at 2.6 percent in last fiscal as compared with previous fiscal year. Overall share of livestock have witnessed an increase and moved from 11.1 percent of the GDP to 11.3 percent of the GDP in 2008-09. Shares of fisheries and forestry in GDP have been estimated at same level at 0.4 percent and 0.2 percent of the GDP by the end of 2008-09.

Services Sectors: The share of services sector, which was 50.7 percent of the GDP in 1999-2000, has increased to 53 percent in 2007-08 and further increased to 53.8 percent in 2008-09 owing to dull performance of industrial sector. The contributions of transports and communication in GDP were 10.2 percent in 2007-08 have increased to 10.3 percent, share of wholesales and retail trade has also increased from 17.23 percent to 17.5 percent, share of finance and insurance declined from 6.4 percent to 6.2 percent, ownership of dwelling's share in GDP remained at 2.7 percent, public administration and defence increased its share in GDP from 5.9 percent to 6.1 percent of the GDP and social, community and public services share in GDP has also increased from 10.6 percent to 11.1 percent by the end of 2008-09.

http://dailytimes.com.pk/default.asp?page=2009\07\11\story_11-7-2009_pg5_1


*****************
Summary
2007-8 2008-9
Industrial Sector: 25.7% 24.3%
Agriculture Sector: 21.3% 21.8%
Services Sectors: 53% 53.8%

lol, 2009 figures do not even add up

KARACHI: State Bank of Pakistan proudly announced on Friday that Pakistan received the highest-ever amount of over $7.811 billion as workers' remittances in 2008-09, beating the previous record of $6.451 billion of 2007-08.

Remittances have been rising for past several years, but this year's increase has rung alarm bells in the country. People have expressed fears that Pakistanis working abroad might return home in large numbers owing to the recessionary conditions in developed countries, particularly the US. Also, people who had been working in UAE's construction industry are coming back owing to the slump experienced by the real estate sector there.

In this scenario, flow of money from abroad is likely to go down this year, which will be a difficult situation for the government in Pakistan to manage. Successive governments have relied heavily on remittances to meet trade and current account deficits during the last seven years.

The money sent by overseas Pakistanis used to be invested either in real estate or in some business, which would boost country's gross domestic product. Now the economy of the country will also lose this investment. The return of overseas Pakistanis will be a huge setback to the country's economy also because the large number of people coming back home will look for jobs and put immense pressure on a job market where already there are hundreds of candidates for every new job opening. The jobless rate will rise sharply and could lead to social unrest.

In FY09, workers' remittances showed an increase of 21.08 percent, or $1.36 billion, when compared with FY08. The monthly average remittances during the year stood at $650.95 million as compared with $537.60 million in 2007-08.

The inflow of remittances from USA, UAE, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1.735 billion, $1.688 billion, $1.559 billion, $1.202 billion, $605.69 million and $247.66 million, respectively, compared with $1.762 billion, $1.090 billion, $1.251 billion, $983.39 million, $458.87 million and $176.64 million.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during FY09 amounted to $771.03 million as against $726.29 million in FY08.

In June 2009, Pakistani workers remitted an amount of $735.17 million, up $187.76 million or 34.30 percent when compared with $547.41 million sent home in June 2008. The amount remitted in June 2009 is the second-highest received in one month, following $739.43 million sent home in March 2009.

The inflow of remittances into Pakistan from most of the countries of the world increased last month as compared to June 2008. According to the break up, remittances from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries stood $164.70 million, $154.39 million, $152.33 million, $108.11 million, $68.48 million and $22.95 million, respectively, compared with $88.29 million, $143.57 million, $123.67 million, $90.98 million, $38.08 million and $13.98 million in the same month of last year. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during June 2009 stood at $64.19 million compared with $48.80 million during June 2008. The amount of $7.811 billion includes $0.48 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs).

http://dailytimes.com.pk/default.asp?page=2009\07\11\story_11-7-2009_pg5_4

Daily Times just realized that there's a worldwide recession?

FY 2008-09 : Trade deficit declines to $17bln (http://www.geo.tv/7-13-2009/45905.htm)

KARACHI : The trade deficit of the country slipped to 17 billion dollars in fiscal year 2008-09.

According to figures released by Federal Bureau of Statistics (FBS), the trade deficit was recorded at 8.25 percent in the previous fiscal compared to 2007-08.

Total exports of the country stood at 17.87 billion dollars in 2008-09 showing a decrease of 7 percent. The total imports in the same period eased by 13 percent to 34.82 billion dollars.

Cheers:cheers:

God. Why isnt it a surplus? Oil is so cheap.

What will happen when oil goes to 150 or 200 dollars?

Even if there's no oil, we'll still run a deficit. Pakistan hardly makes anything worth exporting. There are a few items that we've been exporting since 1930, and we're still stuck there.

Clearly that has to be changed.

One of the biggest reasons the Pakistan industry is uncompetitive is the massive levels of taxation.

But then we do need to run 90 ministries dont we. And PIA and PTV. And the million man army. I could go on and on and on.

Pak seeks $ 4 bln more IMF aid : Tareen (http://www.geo.tv/7-15-2009/45982.htm)

NEW YORK : The Federal minister for Finance Shaukat Tareen has said that Pakistan still needs more financial assistance from international community owing to growing economic meltdown.

In his statement released from New York on Tuesday following dialogues he held with investors of Asian Society here, he said the world is still facing economic crisis while Pakistan has sought additional four million dollars aid from International Monetary Fund (IMF).

“We need more financial aid to avert the drawbacks of economic disaster”, he added remarking, “Pakistan has already received the first installment of the $ 7.6 billion aid pledged by IMF”.

Cheers:cheers:

Pak seeks $ 4 bln more IMF aid : Tareen (http://www.geo.tv/7-15-2009/45982.htm)

NEW YORK : The Federal minister for Finance Shaukat Tareen has said that Pakistan still needs more financial assistance from international community owing to growing economic meltdown.

In his statement released from New York on Tuesday following dialogues he held with investors of Asian Society here, he said the world is still facing economic crisis while Pakistan has sought additional four million dollars aid from International Monetary Fund (IMF).

“We need more financial aid to avert the drawbacks of economic disaster”, he added remarking, “Pakistan has already received the first installment of the $ 7.6 billion aid pledged by IMF”.

Cheers:cheers:

HA! The IMF is already refusing to give the due installment for the previous loan. Now they want another $4 billion.

Shaukat Tarin and Zardari can go to hell.

They will totally indebt and impoverish the country. How is the interest on this debt going to be paid back?

And they're borrowing to run 90 ministries, not to build bridges and roads.


I hope the IMF flat out refuses. Which they will unless the US intervenes.

Forex reserves fall to $11.844 billion (http://www.dailytimes.com.pk/default.asp?page=2009/07/24/story_24-7-2009_pg5_2)

KARACHI : The country's foreign exchange reserves declined to $11.844 billion on the week ending on July 18, 2009 as compared with $12.239 billion last week, data released by the State Bank of Pakistan showed on Thursday.

Total reserves showed a decrease of $395 million during the week. However, the State Bank's reserves witnessed a major decline of $433 million to $8.428 billion, as compared to $8.861 billion last week.

The reserves held by the banks (other than SBP) witnessed an increase of $38 million to reach $3.416 billion, as compared to $3.378 billion last week. Foreign reserves had hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November of last year, largely because of a soaring import bill.

Pakistan agreed in November to an International Monetary Fund (IMF) emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves. The fund recently reviewed the country's performance under the deal, and its board is set to meet next month to decide on a third loan tranche of roughly $875 million. The country has also requested about $4 billion in additional financing from the IMF as ‘insurance’ against the economic crisis. staff report

Cheers:cheers:

Trade Policy targets $25bn textile exports by 2011-12 (http://www.dailytimes.com.pk/default.asp?page=2009/07/26/story_26-7-2009_pg5_1)

KARACHI : The textile policy, formulated for three years envisions the export of the textile products to reach $25 billion in next three years, Rana Farooq Saeed Khan, Minister for Textile Industry has said.

Speaking at dinner meeting hosted in his honour by Tariq Saud Vice Chairman All Pakistan Textile Mills Association (APTMA) on Friday night he said that the government is determined to address the problems of textile industry.

Minister said that the Textile Policy has been finalised and would be issued soon. He further informed that the policy has been formulated for next three years in such a manner so that the export of textile sector may achieve a target of $25 billion in next three years.

The policy will address the issues of up-gradation of machinery, provide infrastructure facilities and skill development of human resource of this industry so that they can compete in international market with their competitors.

Minister for Textile Industry further informed the meeting that the Spinning and Weaving Sector would get its due share from the Export Investment Support Fund, worth Rs 40 billion allocated in the Federal Budget 2009-10.

Minister advocated immediate support to textile industry in the Parliament and also in the Cabinet Meetings because he is confident that only textile industry is capable enough to bail out Pakistan from the current economic crisis so that the government should help this industry.

Tariq Saud, Vice Chairman APTMA highlighted problems and issues being faced by the textile industry. He stressed that government should take immediate measures to tame the slowdown in the textile sector. He said that high cost of doing business is because of highest ever increase in the rate of interest, which has multiplied the problems of the industry.

He said that power shut downs may result in massive unemployment resulting in law and order situation. Negative growth of about 9 percent in largescale manufacturing is mainly due to high cost of doing business. Slump in the industrial growth has greatly affected export of textile items, he added.

He said that unprecedented increase in markup rates is one of the major cause of defaults in servicing the loans availed by the industry, hence, the volume of non-performing loans has reached to an alarming situation.

He urged the government to provide relief to the industry without any further delay and regain confidence of businessmen and industrialists otherwise the outcome of the current situation will result in high rate of loan default and closure of industry.

Dr. Waqar Masood Khan, Secretary, Ministry of Textile Industry while addressing the meeting said that preparation of Textile Policy was the main objective of this ministry.

He said that although we are 4th largest producer and 3rd largest consumer of Cotton but unfortunately now we are at number 12 in the international trade of textile products.

He assured that government will address the problems of Textile Industry without any further delay and he is confident that the first ever textile policy of Pakistan will address the problems and provide immediate relief to industry and make it competitive in international arena.

Cheers:cheers:

Pak share in global market down 33pc (http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Politics/28-Jul-2009/Pak-share-in-global-market-down-33pc)

ISLAMABAD - The Federal Cabinet, in a meeting chaired by Prime Minister Syed Yousuf Raza Gilani, Monday, approved the Trade Policy 2009-12, projecting the country’s export target to $19 billion while maintaining the imports at $28 billion for 2009-10.

Presenting a 3-year Trade Policy 2009-12 Commerce Minister Makhdoom Amin Fahim on the state-run media said that during the three-year period Strategic Trade Policy Framework (STPF) and exports growth would be projected by 6 per cent in 2009-10, 10 per cent in 2010-11 and 13 per cent in 2011-12.

Makhdoom said taking a long-term view of Pakistan’s export performance over the last ten years, Pakistan’s share in the global market, according to WTO data, had declined by more than one third to 0.13 per cent in 2009 from 0.21 per cent in 1999.

The trade minister further stated that due to energy crises, poor law and order situation, unprecedented economic downturn especially in major markets like the US and European Union, Pakistani exports declined to $17.8 billion in 2008-09 as compared with $19.1 billion in 2007-08. Imports also witnessed a decline of 13 per cent and stood at $34.9 billion during the last fiscal year against $40.9 billion in 2007-08, he said.

Similarly, the textile exports also dropped from $10.6 million to $9.6 million in 2008-09. While the share of non-textile manufactured in total exports went down from $5.83 million in 2007-08 to $3.12 million in 2008-09.

In order to address strategic objective of pursuing greater market access through extensive trade diplomacy, the government aims to engage with the larger trading partners like the US and the EU for greater market access and utilize the Reconstruction Opportunity Zones (ROZs) for providing zero duty facility for exports to the US.

According to the policy it is expected that by 2012, the competitiveness ranking of Pakistan will improve from 101 to 75; the share of engineering exports would increase from 1.5 per cent to 5 per cent; value addition of cotton to increase from $1,000 to $1,500 per bale; and regional trade to expand from 17 per cent to 25 per cent. In the new trade policy it has been decided to create a Fund to hedge fund markup rate hikes and the Commerce Ministry would work with the Ministry of Finance and State Bank of Pakistan towards that end.

Presently, the businesses need short to medium-term certainty in the interest rate for investment. Currently, there is no policy instrument provided by the government or private sector to provide finance at fixed interest rates for a short to medium term.

Cheers:cheers:

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International Investment Position of Pakistan : USD (70.189) BILLION (http://www.sbp.org.pk/ecodata/Invest_pk.pdf)

Cheers:cheers:

why is the military thread closed...!???????

Admiral Noman says Pakistan looks beyond P-22 frigates


Thursday, July 30, 2009
BEIJING: Chief of Naval Staff Admiral Noman Bashir said on Wednesday that the Indian nuclear submarine would change the security calculus of the Indian Ocean.

He said that although it was launched two days back, they knew about it since long. However, the CNS said Pakistan did not want to follow the arms race as “we have our own priorities”. The naval chief, who is currently on an official visit to China, said that the induction of the P-22 frigate into Pakistan Navy was a very big leap forward, adding they were looking beyond P-22 frigates.

He told the media he was looking forward for commissioning of the first P-22 frigate, the PNS Zulfiqar, which was constructed in Shanghai, China, on July 30 (today). “Because of the extremely cordial relations between the two countries as well as between the two navies, it was very important for me to meet our most trusted friends and as soon as I got the first opportunity I embarked on the visit to China,” he told the Chinese media.

To a question on security of the Indian Ocean, Admiral Noman said that it was very important for many reasons. The ocean is the main arty for oil supplies and it connects the East with the West.

“The ocean is very important not only for Pakistan and China but for the entire world. Therefore, Pakistan doesn’t want to see it monopolised by any country. So, this is important for all the countries, including Pakistan, to make it sure that the India Ocean remains peaceful,” the admiral added.

Welcoming the presence of the Chinese task force in the Indian Ocean, the CNS said “we look forward for opportunities to work together for the common objective of maintaining peace and security”.

Pakistan’s Ambassador to China Masood Khan was also present on the occasion. Meanwhile, during a meeting with Chinese Foreign Minister Yang Jiechi Admiral Noman said that Pakistan completely supported the anti-piracy deployment of the PLA Navy task force in the Gulf of Aden.

IMF considering boosting Pakistan credit (http://www.thenews.com.pk/daily_detail.asp?id=190698)

WASHINGTON : The International Monetary Fund said Thursday it is considering an increase for an aid package for Pakistan agreed on last November.“I can confirm an augmentation is under consideration,” IMF spokeswoman Caroline Atkinson told journalists in response to questions on reports that Pakistan had requested an additional four billion dollars.

“We do expect it to go to the (executive) board next Friday, August 7,” she added. “The amount will be finally determined at that time by the executive board.”

Last year, the IMF approved a 23-month loan of $7.6 billion, of which four billion has already been disbursed, as part of a programme to help the South Asian nation weather the global crisis.

The IMF has increased credit lines in recent months to other countries including Belarus and Armenia, saying the impact of the global crisis was worse than expected.

Cheers:cheers:

Five-year investment policy aims at attracting $75 billion--daily times

ISLAMABAD: Ministry of Investment on Friday unveiled five-year proposed investment policy aiming at attracting around $75 billion local and foreign investment in oil and gas, energy and agriculture sectors.

The Minister for Investment, Waqar Ahmed, told a media briefing that investment would be encouraged in different sectors especially through establishment of Special Economic Zones (SEZs) across the country.

The SEZs and ROZs would act as catalyst to bring about economic stability and employment generation. The new policy, he said, would be based on three pillars, which include institutionalize a structural public-private policy dialogue, strengthen investment protection, launch a foreign investment promotion strategy and enhance the capacity building.

Waqar said that the policy is unveiled to receive feedback from the public and private sectors. Minister said that the policy would provide a base line to other economic policies and would help achieve the desired economic stability and employment generation in the country. He said that Pakistan’s image has improved after the recent operation against the militants and the return of the displaced persons to their homes.

The Minister was of the view that foreign investors are now keen to invest in Pakistan and he was optimistic of $15 billion annual foreign and local investment in energy, oil and gas, agriculture and manufacturing. The investment in the SEZs would have one window operation at over 24 locations in different cities. An SEZ Act would also be created to provide protection to the investors. The investors would be given five years tariff incentive and developers would be granted ten year.

The Minister said that policy would provide alternative dispute resolution mechanism and it would have full judicial cover. Replying a question, Waqar said that provinces have also been taken into confidence on the policy.

The policy included foreign direct investment strategy to attract the investment by adopting three actions programme. These included enhancing the international image of Pakistan as an investment location, promoting investment projects by international investment and providing services to potential and actual foreign investors in Pakistan.

The programme would be designed as interdependent and mutually supportive components of a coherent investment promotion cycle. The investment promotion activities in Pakistani agencies SMEDA, PC and PPIB would be coordinated with the foreign investment promotion strategy with a view to maximising synergies and sending a coherent message about Pakistan to the international investors. sajid chaudhry

IMF to make $11.7bn available for Pakistan (http://www.dailytimes.com.pk/default.asp?page=2009/08/01/story_1-8-2009_pg5_1)

By Sajid Chaudhry

ISLAMABAD : Shaukat Tareen, newly elected member Senate and Adviser to Prime Minister on Finance and Revenues, announced here on Friday that International Monetary Fund would make available a total package of $11.7 billion to Pakistan.

He hinted for a decrease in the oil prices but distanced himself from the issue by arguing that the price determination is the legitimate purview of the oil and gas regulatory authority and we have nothing to do with it.

Talking to reporters at the inauguration ceremony of the Islamabad Stock Exchange Tower here on Friday, the Adviser said that Pakistan is already benefiting from a IMF $7.6 billion Stand-by-Arrangement and an addition of $3.1 billion would also be made available to Pakistan as insurance cover to adjust for the delay of Friends of Pakistan pledges disbursement. Due to the increase in Pakistan’s loan quota in December from 1 percent to 1.4 percent an additional $1 billion would be available from IMF, he added.

Tareen was confidant that IMF Executive Board would approve third tranche of $840 million with additional loan request of $4 billion or $3.1 billion in its meeting scheduled on August 7. He dispelled the impression that there are difficulties for Pakistan at IMF Board meeting and said that the IMF secretariat has already circulated the documents for Pakistan’s meeting and every thing is “all right”. He also informed that Letter of Intent have already been sent to the IMF authorities.

He said that IMF has no objection over the power subsidy issue as it has already allowed us to provide Rs 55 billion subsidy for the consumers who are already facing load shedding. Elimination of power sector subsidies issue has already been settled with World Bank and Asian Development Bank and there are no more irritants. He said that during his recent visit to Washington he has also held talks with the World Bank authorities on the said issue.

Tareen hinted at implementation of agreement reached with World bank and Asian Development for next 12 month to 18 months and said that until and unless load shedding is totally eliminated the government would continue to subsidise power tariff.

While responding to a question of delay in World Banks $500 million loan, Tareen said, that it’s a matter of IMF Letter Of Comfort (LOC). Once the IMF executive board approves Pakistan’s third tranche, LOC would be issued and it is expected that this loan would be approved by August 26.

He negated the impression created by the media about the delay in the disbursement of the pledges made at Friends of Democratic Pakistan (FODP) Tokyo Conference. Tareen said that it’s a matter of time and disbursements would be made according to the schedule agreed with the major countries. He said America and Japan would give $1 billion each, Saudi Arabia $700 million; EU and UAE would also disburse the pledged money as we have recently concluded consultation with these countries.

He said that power subsidy is no more an issue and the actual challenge is to meet the tax collection target set for the ongoing fiscal year 2009-10. We should meet the fixed target and in this regards administrative reforms in federal Board of Revenue are expected by December this year. He further informed Value Added Tax (VAT) would be introduced in the country.

Tareen also said that the government has no plans to reduce the interest rates in haste. The central bank was taking cautious steps to gradually reduce the interest rates. “The inflationary impacts of low interest rates cannot be ruled out,” he said.

However, he added that interest rates may be reduced by 50 to 100 basis points. “That has nothing to do with the investment climate as KIBOR is less than the discount rate,” he said.

Cheers:cheers:

Five-year investment policy aims at attracting $75 billion (http://www.dailytimes.com.pk/default.asp?page=2009/08/01/story_1-8-2009_pg5_3)

ISLAMABAD : Ministry of Investment on Friday unveiled five-year proposed investment policy aiming at attracting around $75 billion local and foreign investment in oil and gas, energy and agriculture sectors.

The Minister for Investment, Waqar Ahmed, told a media briefing that investment would be encouraged in different sectors especially through establishment of Special Economic Zones (SEZs) across the country.

The SEZs and ROZs would act as catalyst to bring about economic stability and employment generation. The new policy, he said, would be based on three pillars, which include institutionalize a structural public-private policy dialogue, strengthen investment protection, launch a foreign investment promotion strategy and enhance the capacity building.

Waqar said that the policy is unveiled to receive feedback from the public and private sectors. Minister said that the policy would provide a base line to other economic policies and would help achieve the desired economic stability and employment generation in the country. He said that Pakistan’s image has improved after the recent operation against the militants and the return of the displaced persons to their homes.

The Minister was of the view that foreign investors are now keen to invest in Pakistan and he was optimistic of $15 billion annual foreign and local investment in energy, oil and gas, agriculture and manufacturing. The investment in the SEZs would have one window operation at over 24 locations in different cities. An SEZ Act would also be created to provide protection to the investors. The investors would be given five years tariff incentive and developers would be granted ten year.

The Minister said that policy would provide alternative dispute resolution mechanism and it would have full judicial cover. Replying a question, Waqar said that provinces have also been taken into confidence on the policy.

The policy included foreign direct investment strategy to attract the investment by adopting three actions programme. These included enhancing the international image of Pakistan as an investment location, promoting investment projects by international investment and providing services to potential and actual foreign investors in Pakistan.

The programme would be designed as interdependent and mutually supportive components of a coherent investment promotion cycle. The investment promotion activities in Pakistani agencies SMEDA, PC and PPIB would be coordinated with the foreign investment promotion strategy with a view to maximising synergies and sending a coherent message about Pakistan to the international investors. sajid chaudhry

Cheers:cheers:

naresh I already posted that....

naresh I already posted that....

purenyork123 Ji :

Thousand Apologies!

Cheers:cheers:

.
IMF boosts loan to Pakistan by 3.2 billion dollars (http://www.geo.tv/8-8-2009/47264.htm)

WASHINGTON : The International Monetary Fund (IMF) on Friday said it had approved an additional 3.2 billion dollar loan to Pakistan to help the country weather the global economic crisis.

The IMF said the extra funds for the loan program to Pakistan would "help the country address increased balance of payment needs" and increase the total loan to 11.3 billion dollars.

The IMF executive board also approved an extension of the loan to the end of 2010, an additional three months, and the payment of a third installment of the loan of 1.2 billion dollars, the multilateral institution said in a statement.

Four billion dollars had already been disbursed, as part of a program to help the South Asian nation weather the global crisis.

The board decisions were made after IMF completed its second review of its loan, a so-called Stand-By Arrangement, originally approved last November.

The country approached the IMF last year for a rescue package as it grappled with a 30-year high inflation rate and fast-depleting reserves that were barely enough to cover nine weeks of import bills.

"The macroeconomic outlook for 2009/10 remains difficult, and the external position is subject to considerable downside risks," said Murilo Portugal, IMF deputy managing director, in the statement.

The extra IMF aid "will help mitigate these risks and enable the implementation of the government's fiscal program; however, this financing is temporary and should be used as a bridge until the revenue reforms bear fruit."

The board also agreed that part of the additional funding "could be used to finance priority spending until the disbursements of donor support pledged for 2009-2010 are received."

The IMF approved Pakistan's request for waivers for failing to meet certain criteria, including a budget deficit that is 0.9 percent of economic output and continued weakness in banking supervision and tax policy.

"Pakistan's economy has continued to stabilize," Portugal said.

He welcomed Pakistan's progress in reforms in the financial sector and the foreign exchange market and in strengthening the social safety net.

"These achievements are appreciable, considering the security developments that resulted among others in the large number of internally displaced persons, the global economic recession, and the difficult domestic political environment."

Cheers:cheers:

Pakistan receives an FDI of only $ 3 billion/year....This seems so untrue..!

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Argentina to invest $3.5bn in Pakistan (http://www.thenews.com.pk/daily_detail.asp?id=192652)

ISLAMABAD : Federal Minister for Investment Waqar Ahmed Khan has said that successful military operation in Swat and adjoining areas and end of Taliban’s leadership has sent positive signals to the global community that law and order situation is quite better now.

He was talking to Ambassador of Argentina to Pakistan Radolfo Martin Sarvia, who called on the minister, at his chamber in the cabinet block here on Tuesday.

The ambassador told the minister that his government intended to invest $3.5 billion in different economic sectors in Pakistan. Apprising the minister of details of the projects, the ambassador said that Argentina was keen to launch a gas pipeline project in collaboration with China.

Moreover, the Argentinean government would install 40 modern CNG pumps in all big cities on the pattern of South Korea and Singapore. “We will also bring 800 new CNG buses to Pakistan.”

He said: “We are building a high tech modern hospital near Polyclinic Hospital in Islamabad which will be equipped with all modern facilities (machinery, advance laboratory, and world renowned physicians and surgeons).

Moreover, Argentina would also establish oncology department in Polyclinic Hospital for exclusive treatment of cancer patients. The minister highly appreciated these initiatives and assured the ambassador of his full cooperation. He also offered the Argentinean government to invest in agro farming, livestock and infrastructure development projects.

Khan further said the ministry of investment would arrange a round table ministerial conference on the visit of Argentinean’s foreign and commerce minister to Pakistan in first week of September this year.

He said: “We will extend all possible favour to the Argentinean investors and one window facility will be provided to them. We are pursuing the most liberal investment policies in the region.”

Owing to these policies world renowned potential multinational companies are eager to invest in Pakistan. “We want to make Pakistan an economic hub in the whole region,” the minister added.

Cheers:cheers:

http://express.com.pk/images/NP_KHI/20090812/Sub_Images/1100690846-1.jpg
http://express.com.pk/images/NP_KHI/20090812/Sub_Images/1100690846-2.gif

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Pakistan receives $1.2 billion from IMF (http://www.brecorder.com/index.php?id=948395&currPageNo=2&query=&search=&term=&supDate=)

RIZWAN BHATTI

KARACHI (August 13 2009) : Pakistan on Wednesday received 1.2 billion dollars from International Monetary Fund (IMF), sources said. The amount comprises 840 million dollars of the third tranche of the Stand-By Arrangement and 360 million dollars of an augmentation sanctioned by IMF board in its recently held meeting. With the current inflows, the country's foreign exchange reserves surged to 13 billion dollars, sources added.

The IMF board also approved an augmentation of excess by an amount of 3.2363 billion dollars to help the Pakistan address increased balance of payments needs. However, sources said that hin case of receiving already promised funds from Friends of Pakistan the country has to reimburse the excess approved amount to IMF.

After approval of excess 3.2 billion dollars, total financial support to Pakistan has reached 11.327 billion dollars, which is 700 percent of Pakistan's quota, or 6.3 percent of its GDP. Sources in SBP and Finance Ministry also confirmed that third tranche from IMF has been received.

"Yes, we have received some 1.2 billion dollars from IMF on account of third instalment of SBA and including augmentation fund," said Wasimuddin, chief spokesman of SBP, adding that the amount had physically been transferred in the central bank account on Wednesday morning. With the release of third tranche total disbursements under the IMF program comes to 5.3265 billion dollars. As per agreement, a portion of the augmented excess Pakistan could be used to finance priority spending until of the disbursements of donor support pledged for 2009-10.

Cheers:cheers:

Buliding exchange reserve with borrowed money isnt a nice sign at all nor is getting increased loans from IMF a positive sign , the interest on the loan will be burdensome on the economy.
These arent good reasons to celebrate !

Exactly.

Soon the debt servicing (interest) and defence spending will add upto 2/3rd of the entire bugdet.

Yaaay lets celebrate, reserves are going up.

These arent good reasons to celebrate !

Who's celebrating?

Pakistan Credit Rating Increased by Standard & Poor’s

Aug. 24 (Bloomberg) -- Pakistan’s long-term sovereign credit rating was raised one level to B- from CCC+ by Standard & Poor’s with a stable outlook, citing the International Monetary Fund’s additional bailout.

“The upgrade reflects Pakistan’s improved external liquidity position, coupled with its successes in implementing corrective policy measures to rectify an unsustainable fiscal trajectory,” S&P said in a statement today.

The IMF this month increased Pakistan’s loan package to $11.2 billion, approving an extra $3.2 billion. That prompted Moody’s Investors Service to last week raise its outlook on the South Asian country’s debt ratings to stable from negative.

Governor Salim Raza on Aug. 15 cut the central bank’s benchmark interest rate to 13 percent from 14 percent to aid economic growth.

“A narrowing current account deficit, helped by buoyant remittance inflows, and successive disbursals of the IMF and other multilateral loans have reduced the risk of near-term external payment difficulties for Pakistan,” S&P said.

http://www.bloomberg.com/apps/news?pid=20601080&sid=a3E4FUUWeXTQ

TDAP plans web portal





KARACHI: Trade Development Authority of Pakistan (TDAP) has invited expression of interest (EoI) for development, maintenance and hosting of its web portal. According to TDAP here Saturday, the pre-qualified, reputable and

experienced firms will be eligible to apply for this task.

ECNEC approves 20 projects worth Rs259b

Updated at: 1450 PST, Thursday, September 03, 2009

ISLAMABAD: The Executive Committee of National Economic Council (ECNEC) approved 20 projects worth Rs259 billion in a meeting held Thursday with federal finance minister Shaukat Tarin in chair.

The meeting approved Rs128 billion for the restoration of the Circular Railway. Also, the projects for dams worth Rs16.92 have been approved in the meeting.

The meeting is mulled over 20 development projects worth Rs 259 billion for approval. Projects include the development of water reservoirs, infrastructure and social sector.

The members at the outset of the ECNEC meeting prayed for early recovery of Federal Religious Minister Hamid Saeed Kazmi who was hurt in murder attempt outside his office yesterday.

Forex reserves climb to $14.33b



Associated Press of Pakistan

ISLAMABAD: Pakistan's total liquid foreign exchange reserves rose to 14 billion dollars in a week. According to State Bank of Pakistan (SBP) forex reserves reached at Rs 14.33 billion with the increase of 11.29 percent, a private news channel reported.

According to break-up, foreign reserves held by SBP were 10.79 billion dollars with an increase of 1.33 billion dollars while net forex reserves held by banks (other than SBP) were 3.51 billion with an increase of 1.98 billion dollars.

ISLAMABAD: The International Monetary Fund urged Pakistan’s government on Thursday to make greater efforts to raise revenues and introduce Value Added Tax to lower dependence on foreign aid.

‘Either you continue to cut spending, including on essential areas, and you have unmet social needs, or you raise the revenue and try to address them,’ Adnan Mazarei, the Washington-based IMF Mission Chief for Pakistan told Reuters in an interview during a visit to Islamabad. ‘There’s no other way.’

Barely 18 months old, Pakistan’s fragile civilian government needed an IMF bail-out last November to avert a balance of payments crisis.

The IMF in July increased its loan to Pakistan to $11.3 billion from an initial $7.6 billion.

It released a third tranche of $1.2 billion in August, bringing the total disbursements so far to $5.148 billion.

The government inherited a fiscal deficit that had gone out of control under an interim government before the February, 2008 election that ushered in the civilians after nearly a decade of military rule.

Fighting a rising tide of Islamist militancy while returning to democratic rule, Pakistan has been given priority by international donors, but Mazarei warned the government not to bank on external support for too long.

‘Donors and others like the IMF can lend to Pakistan for a couple of years, but beyond that the government’s finances need to become self-sustaining and sustainable,’ Mazarei said.

He said Pakistan should broaden its tax base, as the current tax-to-GDP ratio of nine per cent is one of the lowest in the world, and he recommended the introduction of Value Added Tax.

‘To enhance the legitimacy of economic policy, the tax net needs to be broadened,’ he said.

‘It’s very critical to introduce the Value Added Tax. This tax is able to raise the tax ratio in terms of GDP by three to four per cent and would allow greater spending by the government,’ he said.

Interest rate cuts

With the central bank due to conduct its next monetary policy review at the end of this month, Mazarei said interest rates were at the appropriate level for inflation, but could come down further ‘if economic and financial conditions permit’.

Pakistan’s central bank on Aug.15 announced a cut of 100 basis points in its policy rate to 13 per cent, citing improvement in key macroeconomic indicators.

After peaking at 25.3 per cent in August last year, annual inflation had subsided to 11.17 per cent by July this year.

In a review of Pakistan’s performance released last month, the IMF said its staff argued that the policy interest rate should remain on hold until core inflation shows a further significant decline.

Mazarei said the economy was stabilizing, but still vulnerable.

‘People shouldn’t think Pakistan is out of the woods because the global economy is in a very shaky situation and the government budget is still weak, output is weak, inflation is still high and confidence hasn’t been restored,’ he said.

Gross Domestic Product (GDP) growth in the 2009/10 fiscal year is projected at three per cent from an earlier four per cent, the IMF said in the review. The government has set a target of 3.3 per cent. These are low rates of growth for a country with an annual population growth of more than two per cent.

Mazarei said the authorities had to improve governance in the power sector, as shortfalls in electricity were crippling the economy.

‘Believe me, electricity is doing more to kill growth than any other sector in this country,’ he said.—Reuters

Pakistan is ranked 85th among 183 economies of the world and it is leading in South Asia including its neighbour India but poor ratings continue for another year in the category of employing workers, said the World Bank report on ‘Doing Business 2010’.

The country has seen a boom in the investment sector after economic recession hit major economic powers of the world and the position of Pakistan is also providing better environment for doing business in South Asia. Pakistan also made it easier to start business by introducing e-service registration system because at an average.

The report retains 10 indicators including starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. According to the report, Pakistan is improving at the South Asian level, however the data show that the country went down 17 points to 80 from 63 in 2009 in the category of ‘Starting a Business’ and there it comes the credibility of present government which is infamous for corruption.

Dealing with construction permits, Pakistan rose from 105 to 100 but no improvement was made in the category of employing workers as it remained on the same position of 146. Good signs for registering the property where its standing has been raised to 8 points and also a progress was seen in the report regarding getting credit, protecting investors and paying taxes are concerned.

According to co-author of the doing business 2010 report Daliha Khalifa, in an active year of business regulatory reforms, economies in South Asia have picked up their reform pace-though there is still room for more action.

A record of 131 out of 183 economies around the globe reformed business regulation between June 2008 to May 2009, according to doing business 2010: reforming through difficult times, the seventh in a series of annual reports published by IFC and the World Bank.

SENIOR Political Assistant to Punjab Chief Minister former MNA Mohammad Pervez Malik has said that President Asif Ali Zardari’s unsuccessful foreign tours are a burden on the national economy.

In a statement here on Friday, he said that the Parliament should be told that what benefit these foreign visits gave to the nation and country so far. He said that the beggar’s bowl, which Mian Nawaz Sharif had broken during his rule, the present rulers had again picked it. He said President Zardari should remember that no indebted country could combat foreign aggression and pressures. He said the federal government was not in a position to restore the confidence of local and foreign investors.

Pervez Malik said that the rulers could control their mistakes by promoting reconciliation and mutual dialogue, he said that people think that President Asif Ali Zardari was continuing the policies of Pervez Musharraf.

He said that President Zardari like Pervez Musharraf was fond of foreign tours, while those offering sacrifices for the restoration of democracy were deprived of benefits of the present socio-political system. He said that people did not need to stay in long queues the whole the day for getting daily-use items, nor was there any danger to democracy in the countries where national institutions were more powerful than personalities.

Is there any chance that the current government falls? This government should go and never return.

I doubt it...unless something dramatic happens in the region. I am not a PPP supporter--screw all parties--but I do know how many international media channels, foreign and domestic, are praising zardari for his turnaround in the pakistani economy and defence. And I do admit Pakistan has witnessed far lesser terrorist attacks and major ones and has earned alot of reputation from the western world too. The economy has bounced back, too. But at the same time no one knows whats happening behind the scene?

Is there any chance that the current government falls? This government should go and never return.

I think by Martial Law only...........otherwise no option

Financial development has deteriorated in the country in the past one year as its ranking dropped from 34th in 2008 to 48th in 2009 among 55 economies surveyed by the World Economic Forum for its Financial Development Report 2009.

The report defines financial development as factors, policies and institutions that lead to effective financial intermediation and markets, as well as deep and broad access to capital and financial services.

The Financial Development Report and the Financial Development Index (FDI), on which it is based, provide a score and rank for 55 countries according to the level of their financial development.

In accordance with this definition, measures of financial development are captured across seven pillars. Of these, three pillars are overseen by the policy-makers which are institutional environment, business environment and financial stability. Next three pillars are financial intermediaries which include banking and financial services, non-banking financial services and financial markets. The seventh and the last pillar is financial access that relates to end-users of capital.

The report points out that last year’s financial crisis has affected the ranking of many countries. The turmoil created by the global financial crisis moved the US from top position in 2008 to number three in 2009. Australia which was placed at 11th in 2008 moved up to second position. Japan moved down from fourth position in 2008 to number nine in 2009.

Among regional economies, China moved down from 24th to 26th position in 2009. India moved from 31st to 38th, Pakistan from 34th to 48th and Bangladesh was on 54th.

An analysis of the seven pillars reveals that in institutional environment India was ranked 48th and Pakistan 52nd. In business environment, India stood at 48th position and Pakistan 50th. In financial stability, Pakistan was at 48th position and India at 46th. Thus, in the three pillars relating to policy-makers, India performed better than Pakistan.

In financial services, Pakistan was at 46th position and India at 39th. In non-banking financial services, Pakistan was ranked 51st and India 17th. In financial markets, both India and Pakistan scored better. Pakistan was placed at 25th position and India at 22nd. In financial access, Pakistan and India performed worst as Pakistan was ranked 50th and India 48th.

The report reveals that financial crisis can have devastating effects on the world’s most vulnerable people. The weakest members of society are often at the highest risk of falling into poverty trap, which can lead to long-term developmental and economic losses.

The authors of the report point out that the current crisis has once again demonstrated that developing countries must strengthen their safety nets and plan their crisis intervention scenarios to protect the weakest in a timely, targeted and cost-effective manner.

The report particularly discusses the status of Pakistan and other Asian countries which are among the poorest performers. It states that Pakistan (49th), the Philippines (50th) and Bangladesh (54th) round out the representation of Asian countries in the FDI, all falling within the bottom 10 countries of the index.

A high degree of political and economic instability is probably contributing to weak scores across Pakistan’s institutional (52nd) and business (50th) environments. Likewise, the country shows a very high risk of sovereign debt crisis (54th).The stability of its banking system (29th) is relatively strong by contrast.

Despite generally low levels of stability, the financial systems of Pakistan and the Philippines also provide some indications of strength, the report says.

Pakistan is ranked 85th among 183 economies of the world and it is leading in South Asia including its neighbour India but poor ratings continue for another year in the category of employing workers, said the World Bank report on ‘Doing Business 2010’.

The country has seen a boom in the investment sector after economic recession hit major economic powers of the world and the position of Pakistan is also providing better environment for doing business in South Asia. Pakistan also made it easier to start business by introducing e-service registration system because at an average.

The report retains 10 indicators including starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. According to the report, Pakistan is improving at the South Asian level, however the data show that the country went down 17 points to 80 from 63 in 2009 in the category of ‘Starting a Business’ and there it comes the credibility of present government which is infamous for corruption.

Dealing with construction permits, Pakistan rose from 105 to 100 but no improvement was made in the category of employing workers as it remained on the same position of 146. Good signs for registering the property where its standing has been raised to 8 points and also a progress was seen in the report regarding getting credit, protecting investors and paying taxes are concerned.

According to co-author of the doing business 2010 report Daliha Khalifa, in an active year of business regulatory reforms, economies in South Asia have picked up their reform pace-though there is still room for more action.

A record of 131 out of 183 economies around the globe reformed business regulation between June 2008 to May 2009, according to doing business 2010: reforming through difficult times, the seventh in a series of annual reports published by IFC and the World Bank.

yes..india legs a lot just because of its awakerd and irregular labour laws which does not support employers in one or other ways, but it soon will improve drastically bcoz India has understood this after so long debate with its labor friendly but anti development communist parties of WB and south, and took responsibilities to reform all labor laws and acts plus make separate institutions to reform and regulate and govern all mid to low scale (e.g. mining labor act) sectors at an international standards by the end of fiscal year of march 2011.

so soon we will see india's ranking would be around 10s or 20s atleast in my opinion...

The focus of the 10th Five Year Plan 2010-15 is expected to be converting country’s economic growth base from agriculture to sound industrial bases in medium- and long-term, a senior official at Planning Commission told on Friday.

To overcome resource scarcity situation in the country, the 10th Five Year Plan would offer private sector investment opportunities under Public Private Partnership (PPP) mode for infrastructure development as well as management and operations of the different projects of public service.

The plan would also stress for use of available infrastructure, as the financial health of the country is not able to go for huge investment in infrastructure development especially for health and education sectors.

The country would be able to achieve up to 4 percent Gross Domestic Product (GDP) growth with the promotion of agriculture alone, to achieve sustainable higher GDP growth of 6 percent or above would only be possible by converting country’s base from agriculture to industry, explained a senior official at Planning Commission.

Planning Commission has fixed the deadline of December 31 for finalizing consultative process for draft of the 10th Five Year Plan 2010-15.

Planning Commission has formed some 34 working groups to submit sectoral reports by November 15 for finalising initial draft of the plan, the official added. The official informed that these working groups for each sector of the economy have been mandated with clear Terms of Reference (TORs) to provide input in consultation with public and private sector stakeholders by November 15, 2009.

Each working group has also been empowered to form sub-groups to finalise its recommendations so that no aspect is ignored and input from all stakeholders and sub-sector is included in the initial draft, the official added.

By the start of the December 2009, each Chief at Planning Commission would arrange a detailed briefing for the central management of the Planning Commission as well as experts from the relevant fields who would also be invited to give their input, the official explained.

After having input from the experts, sectoral strategies would be finalised for incorporation in draft of the plan, the official further informed.

To propel growth, new sectors will be developed and harnessed. The government has initiated policies to reverse the neglect of agriculture and this improvement in the incentive structure has already shown good results. The tenth plan will build on this growth momentum to make agriculture and agro-business a leading sector of growth and development through vertical integration of high value agriculture and livestock products.

Industrial development will be stimulated by making Pakistani firms a part of global value chain by increasing their competitiveness and reducing the cost of doing business.

Modern services (banking, finance, communication) will be developed to enable the private sector to serve as a major driver of economic growth in the Tenth Plan (2010-15).

The widening skill gap, which is responsible for low productivity and lack of competitiveness, will be overcome by building state-of-the-art technical training institutes that produce world-class graduates and diploma-holders.

To achieve higher growth with employment generation for given levels of investment, the growth of small- and medium-sized industries needs to be accelerated. This would require the establishment of Common Facilities Centres (CFCs) that would enable small-scale industries to improve value-added production and quality control facilities.

Industrial competitiveness would be raised and the cost of doing business reduced by major improvements in infrastructure through the implementation of the National Trade Corridor Improvement Program (NTCIP) and overcoming the energy gap through an Integrated Energy Development Plan.

KARACHI: Italian government has agreed to provide a credit line equivalent to $10 billion for Italian investors willing to invest in Pakistan.

This was stated by the Chairman Board of Investment (BoI) Saleem H Mandviwalla while addressing a press conference here Saturday.

BoI chairman, who accompanied President Asif Ali Zardari during his recent official visit to Italy, said that talks with the Italian Embassy for materializing this credit line have now been initiated and hoped that this fund will be ready in the next six months.

He said that this credit line has been promised by the Italian Prime Minister Silvio Berlusconi in response to a request by President Asif Ali Zardari during a bilateral meeting in Rome.

Mandviwalla said that this request was well received by the Italian premier and Mr Berlusconi also promised that he will bring a large delegation of leading Italian investors to Pakistan.

He hoped that this fund will help in boosting Italian investment in Pakistan in a big way.

The BoI chairman said that leading Italian companies have shown keen interest in having joint ventures in Pakistan during a meeting with the president.

He pointed out that a Pak-Italy Chamber will be established in the next two years.

Talking of his meetings with leading South Korean firms including Daewoo, Hyundai, LOTTE and K Water, he said that they are keen to invest in Pakistan.

The chief executive of LOTTE has indicated that his company was willing to invest at least $10 billion in Pakistan by way of acquisitions in next five years.

They have already purchased Pak PTA and plan to invest another $300 million to acquire food and raw material companies in Pakistan, he added.

Similarly, the BoI chairman said that K Water was willing to construct dams in Pakistan and Korean Electric Power Company (KEPCO) was interested in power generation and distribution in Pakistan.

He, however, said that terrorist activities were the cause of concern for the foreign investors.—APP

source: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/13+italy+to+set+up+10bn+fund+for+investing+in+pakistan-za-07

SLAMABAD: The European Union (EU) has asked Bangladesh and other developing countries to buy fabrics from Pakistan to receive GSP facility to EU countries.

According to a statement issued by the Ministry of Textile Industry on Saturday, Bangladesh has not given this facility to Pakistani fabrics but with the change of Rules of Origin (RoO) in January 2010 which favor single stage transformation to their garment manufacturers and will allow Pakistani fabric this facility.

Bangladesh Textile Mills Association (BTMA) has opposed the new criteria of EU on the ground that substantial investment has been made in Bangladesh’s Primary Textile Sector (PTS) that is spinning and weaving to the tune of $4 billion to get the benefit of GSP facility on supply of yarn and fabric to local garments manufacturers.

Federal Advisor on Textiles, Dr Mirza Ikhtiar Baig termed this a success for the country and said that it would enhance the exports of Pakistani fabric to Bangladesh.

Dr Baig has been working tirelessly on the duty free market access to EU and has given a presentation to the president on market access.

He informed that there will be a joint commission meeting in Brussels on October 20 for duty free market access for Pakistan to EU.

Dr Baig said that Bangladesh also has to give Pakistani fabric GSP under SAARC Regional Cumulation and as per EU move to change the rule of origin from January 2010.

Dr Baig informed that PDMEA has proposed to the TDAP to organize seminars on duty free market access to EU to muster media support on this issue at this crucial junction and he has supported the initiative said Dr Baig.—APP
source: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/13+eu+asks+developing+countries+to+buy+pakistani+fabrics-za-01

Pakistan has slipped five places in the Global Gender Gap Index 2009 from 127th spot to 132nd from among 134 countries, showing an ‘absolute decline relative to its performance in 2008.’

The World Economic Forum (WEF) released the Global Gender Gap Report 2009 on Tuesday. The flagship report produced annually by the Women Leaders Programme under WEF provides a framework for capturing the magnitude of gender disparities around the world and aims to serve as a tool for benchmarking and tracking gender inequalities based on economic, political, education and health criteria.

The report’s Index assesses countries on how well they are dividing their resources and opportunities among their male and female populations, regardless of the overall levels of these resources and opportunities. The report measures the size of the gender inequality gap in four critical areas including economic participation and opportunity, educational attainment, political empowerment and health and survival.

The economic participation and opportunity looks into outcomes on salaries, participation levels and access to high-skilled employment whereas educational attainment covers access to basic and higher level education. Political empowerment is measure by the representation of women in decision-making structure and to rank a county on health and survival, the report takes life expectancy and sex ratio as basic indicators.

This year’s report provides insight into the gaps between women and men in over 93% of the world’s population. Thirteen out of the 14 variables used to create the index are from publicly available hard data indicators from international organizations, such as the International Labour Organisation, the United Nations Development Programme and the World Health Organisation.

The report shows that Iran (128), Korea (115), India (114) and Pakistan (132), that were already at the bottom of the rankings last year, continue to hold some of the lowest positions in Asian countries. The index’s scores can be interpreted as the percentage of the gap that has been closed between women and men.

The country profile of Pakistan shows that it is ranked 132 in economic participation and opportunity, 128 in education attainment and health and survival and 55 in political empowerment. Pakistan’s position was 112 in the year 2006 that declined to 126 in 2007 and then 128 in 2008.

Nordic countries continued dominance of the top four with Iceland (1) claiming top spot of the Index with Norway (3) which slipped to third position behind Finland (2) whereas Sweden managed to get the fourth position among 134 countries. Yemen is ranked lowest in the index followed by Chad in the second last position.

Interestingly, United States (31) fell by three places, owing to minor drops in the participation of women in the economy and improvements in the scores of previously lower-ranking countries.

Germany (12) and the United Kingdom (15) also slipped down the index this year. Out of the 115 countries covered in the report since 2006, more than two-thirds have posted gains in overall index scores, indicating that the world in general has made progress towards equality between men and women, although there are countries that continue to lose ground.

The report says that at the bottom part of the rankings, India (114), Bahrain (116), Ethiopia (122), Morocco (124), Egypt (126) and Saudi Arabia (130) all made improvements relative to their rankings last year. This was driven mainly by small improvements in the economic participation of women. It further mentions that South Africa and Lesotho made great strides in closing their gender gaps to enter the top 10, at sixth and 10th position respectively.

The latest data reveals that South Africa in particular made significant improvements in female labour force participation. The Philippines (9) lost ground for the first time in four years but remains the leading Asian country in the rankings.

^^ Shameful :ohno:

What do you expect will happen when the vast majority of the mothers in our country indulge in a rat race to marry off their daughters before they can even finish their education, and make them dependent and in most cases subservient to a man whom they do not know, who more often then not turns out to be an utter tyrant. What do you expect to happen when women cut down their own? I have this saying that "Aurat hi Aurat ko kharaab kar rahi hai is mulk mein".

Our retrogressive culture is to blame for the vast majority of ills that plague this Godforsaken land.

If the gender gap is vast, it doesnot always mean that country is not developed ......You can see KSA, Eygpt etc. are also on the lower side in the ranking but they are now on the verge of being developed country, So nothing to be shameful........

Saudi Arabia is the last country in the world we want to aspire to be like, Saudi Arabia is only developed because it is lucky that it struck oil, without that, they would never have been rich given their suppression of half their population.

but now they have very much diversified their economy by building 6 economical industrial cities, out of which KAEC has been built, 3 are underconstruction & 2 have been approved, also Haj bring them alot of money & oil tou hai hi..........Their last year Balance of payment (i.e. difference between imports & exports) is 538 billion Saudi Riyal or 143.667 billion US dollars.........

Yes, the key word being "now". Without the oil money they would have been nowhere, and it would have infact forced them to be more civilized in order to develop themselves. Which is why I'm glad Pakistan doesn't have any oil, we are a much more liberal country because we had to be.

@ARA

Take away the oil from Saudi Arabia and there would be no difference between them and Yemen. KSA has oil which has enabled all of their achievements and that is the undeniable and irrefutable truth of the matter. As brightness said, KSA is the last country we should aspire to be like.


the very thought sends shudders down my spine :shifty:

Turkey would be our best role model, IMHO. Modern, Secular, Progressive, and Prosperous.

Turkey would be our best role model, IMHO. Modern, Secular, Progressive, and Prosperous.

Not to mention our flag is inspired from theirs, too bad our laws aren't.

More than half of the Pakistanis don't want the country to be secular. What's wrong with them? I talked to my friends about it and they were also against secularism.

More than half of the Pakistanis don't want the country to be secular. What's wrong with them? I talked to my friends about it and they were also against secularism.

With all due respect, your friends have very little idea about the world and how it works and the history of Pakistan.