Pakistan Economy - News & Updates - Archive

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Pakistan to benefit from Indian expertise in IT​

KARACHI, Aug 10: Federal Minister for Information Technology Awais Ahmed Khan Leghari has said that Pakistan wants to benefit from the advanced expertise of international giants including India in the field of information technology (IT).

He also said the future of Pakistan lay in rapid progress in IT sector as in the next 60 years the strength of a state would be gauged from the growth of its IT industry.

The minister expressed these remarks while addressing the international level CEO forum arranged by Pakistan Software Export Board (PSEB) in conjunction with ITCN- Asia on Friday.

The purpose of the forum titled “Corporate success in the knowledge economy” was to showcase the rapid strides made by the Pakistani IT sector over the last few years and also to attract more foreign financing through effective interaction with foreign companies.

Various high-profile delegates representing international as well as national IT companies attended the forum while renowned IT personalities including Dr. Tony Murphy, author of the book “Succeeding in the Knowledge Economy”; Geoffrey S. Conner, former Texas secretary of state and principal, Texas Global; Raymond King, CEO About Us and others addressed the audience.

Mr Leghari stated that India also wanted to get benefit of Pakistan's human resource in IT sector. “We acknowledge that India is at an advanced stage in terms of IT industry and we should benefit from this expertise,” he said, adding that there were some bottlenecks on the part of the neighbouring state that need to be resolved in this regard.

Evaluating the contribution of PSEB in the IT sector's advancement the minister said that due to its vigorous initiatives Pakistan had rapidly secured an important place in the world IT market.

“These initiatives would continue on regular basis as it would also enhance the international financing for the promotion of IT industry and help in marketing the local IT outsourcing services abroad.”

About the human resource potential, the minister said that it was a point of satisfaction that more or less 80 million youths under the age of 18 in Pakistan were associated with the IT sector and would further strengthen the IT industry in near future.

He pointed out that presently the local IT industry was facing shortage of IT professionals and said that there was a wide capacity for accommodating hundred of thousands of workers in addition to experts in the IT industry.

He pointed out that the government was actively working on introducing various more initiatives for the promotion as well as expansion of the IT sector in addition to provision of more employment opportunities for the local IT graduates

Managing Director of PSEB Yousuf Hussain said the CEO forum was an effective initiative where prominent international executives and local IT companies could increase interaction by exchanging their expertise.

He informed the audience that about 60 foreign IT and telecommunication companies were working in Pakistan and they were further exploring the local market in terms of more investments and outsourcing of IT-based services.—APP

http://www.dawn.com/2007/08/11/ebr12.htm

 

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Rains, power outages hit industrial output ​

KARACHI (August 11 2007): Industrial production has badly suffered due to thin attendance, non availability of transport, power failure as well as continuous rains on Friday. Industrialist said a very large number of industrial workers faced hardship in getting to their residences on Thursday due to rains, which started earlier in the day and continued with small intervals on Friday.

Korangi Association of Trade and Industry (KATI) Chairman Masood Naqi said that industrial production declined to around 20 to 25 percent due to shortage of workers in Korangi industrial area.

He said many workers, who faced difficulties in reaching home on Thursday, did not report for duty on Friday. Besides, there was thin transport on the road, which played a big role in keeping the workers away from their jobs.

In some areas like Sector 23, prolonged power failure was also the major cause of short production, causing revenue losses not only to the government, but also the government, he said, and pointed out the area contributed around Rs 250 million in taxes per day. Chairman of Federal "B" Area Association of Trade and Industry (FBAATI) Masroor Alvi said that industrial production in the area was cut to half as workers failed to report for duty.

Referring to thin attendance of workers, he said majority of workers, living in low-lying areas, had to save their belongings from the rainwater, which entered their houses. Non-availability of transport was another factor and the workers could not reach their factories, he added.

He said heavy rains also disrupted delivery of export goods to the port for shipment. In Site industrial area, a very large number of industrial units remained closed due to power failure. Around 18 feeders of Karachi Electric Supply Corporation (KESC) were tripped, rendering almost the entire area without power.

http://www.brecorder.com/index.php?id=604363&currPageNo=1&query=&search=&term=&supDate=

 

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ICCI for pharmaceutical laboratories of international standards ​

ISLAMABAD (August 11 2007): Acting President Islamabad Chamber of Commerce and Industry (ICCI) Jamal Abdul Nasir on Friday called for establishing pharmaceutical laboratories of international standards to boost quality of exports.

"Local pharmaceutical industries should be encouraged to export its products to Central Asian States, African region and other countries of the world", said while addressing the participants of meeting on pharma industry here on Friday.

The President ICCI lauded the initiatives of the government for bringing tariff to zero percent on import of pharmaceutical machinery, which will encourage the sector.

He also emphasised to greatly focus on research and development of pharmaceutical products as Pakistan has great potential in this sector. He added that for progress in this area it is important that government should continue to provide support to the pharmaceutical industry so as the help in reducing the cost of pharmaceutical products and also to export it for earning foreign exchange.

Nasir said that it is essential to establish pharmaceutical testing labs of international standards in the country, which will facilitate the pharmaceuticals industries. He said that 50 percent subsidy given by the government on testing of pharmaceutical goods from recognised international laboratories would assist the local pharmaceutical industry in cost sharing and reducing prices.

http://www.brecorder.com/index.php?id=604389&currPageNo=2&query=&search=&term=&supDate=

 

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Final word on IPI in two months ​

KARACHI: Secretary Petroleum Farrakh Qayyum on Friday said a final outcome of negotiations on Iran-Pakistan-India (IPI) gas pipeline was expected in next two months.

Denying that talks on the seven billion dollar project were moving at a snail’s pace, he said that Pakistan was in advance negotiations with the two other participating countries and only few issued remained to be settled.

“I’ll personally take up the matter at the highest level to ensure that it (IPI pipeline) is implemented,” he vowed while talking to newsmen here at going-live ceremony of SSGC’s IT enabled Customer Information Service (CIS).

He lauded the role of SSGC in introducing new innovations to facilitate its customers. “By and large the perception of public utilities is very poor,” he said and emphasised that such services will help change that.

CIS has streamlined all the internal and external process of the utility that included pre-sales, sales, field services, customer care, gas-theft control and other customer support functions.

http://www.thenews.com.pk/daily_detail.asp?id=67832

 

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PIA to replace B737 with new A320-200 aircraft ​

KARACHI: Pakistan International Airlines (PIA) on Friday said it will induct seven new Airbus 320-200 aircraft in year 2009 to replace the aging fleet of Boeing 737-300.

It said a letter of intent has been signed for lease of the aircraft with Aviation Lease and Finance Company (ALAFCO) of Kuwait. B-737-300 served PIA for more than 20 years.

A PIA press release referred to Chairman PIA Zafar A Khan as saying that a comprehensive study was carried out and based on technical and operational evaluation of the available options, A320-200 was selected as the most suitable choice for the airline.

The new A320 aircraft will provide maximum operational flexibility on short and medium haul routes with lower operating costs, optimised cabin layouts and better baggage/cargo, he added.

PIA will fly these 146-seater A320s on domestic routes with limited operation on regional routes. This induction will take down average age of PIA fleet to 10 year from 13.

http://www.thenews.com.pk/daily_detail.asp?id=67837

 

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In-depth analysis of policies needed ​

New programmes are launched without assessing outcome of previous ones

Mehtab Haider

ISLAMABAD: The government has launched more than 50 policies at the national level pertaining to various sectors and is starting more without analysing what went wrong in the previous ones.

A huge number of policy-level documents had been issued for various sectors during the last eight years’ uninterrupted Musharraf-Aziz rule, but analysis was never done to evaluate the implementation process in order to adopt an outcome-based approach, The News has learnt.

This government has been enjoying power with full authority for eight years, which was not the case in the democratically-elected regimes during the 90s. “So the incumbent regime must answer 160 million people about the outcome of its envisaged policies,” a high-level official said.

“Many policies announced by the regime in the last eight years were even in conflict with each other,” the official involved in the decision-making process confided to this scribe.

A list of policies announced by the incumbent regime, which is available with The News, reveals the government launched National Education Policy, National IT Policy, National Conservation Strategy, National Sanitation Policy 2006 and Pakistan National Operational Strategy for CDM, but it never bothered to even think about their outcomes.

A retired civil servant, who was actively involved in devising Poverty Reduction Strategy Paper (PRSP-1) in 2001, said the government had set an ambitious strategy in the paper, but in-depth analysis was never done to overcome failures in achieving the envisaged targets.

The agriculture sector’s contribution to overall GDP growth has been on the decline, but the government did not consider reviewing its announced policy-level documents namely Agriculture Prospective and Policy and Wheat Policy.

The government launched National Housing Policy and Allotment Policy for Government Houses, but it never attracted the policy-makers’ attention to consider the outcome. The government, the list shows, announced National Forest Policy 2002, National Environment Policy, National Drinking Water Policy for 2005, Export Policy Order and Import Policy Order without analysing their outcomes.

There are certain policies usually announced by every government, but in the last 60 years the governments never bothered to apprise the masses and other stakeholders of their results. For instance, Trade Policy is announced every year without mentioning results of last year’s promises.

The government also announced Monetary Policy Statement, Fiscal Policy Statement and many other policies on the economic front. It, sources said, also formulated Fertiliser Policy 2001, Privatisation Policy, Labour Policy 2002, National Social Welfare Policy, National Policy to Combat Child Labour, Liquefied Natural Gas (LNG) Policy 2006 and Natural Gas Allocation and Management Policy 2005, but analysis was not done to find out their outcomes.

The government has recently announced Petroleum Exploration and Production Policy 2007 without analysing the last policy of 2001. It also launched Labour Protection Policy 2006, deregulation policy for telecommunications sector, Textile Policy, wind power tariff guidelines and National Policy for Development and Empowerment of Women. “No one knows what have been achieved through these policies as it is out of fashion to analyse net results,” a source added.

Some policy documents, the high-level official said, were not in line with Medium Term Development Framework (MTDF) designed by the government for the next two decades to move with the pace of the 21st century. Now the government is again busy in devising more policy-level documents such as Poverty Reduction Strategy Paper (PRSP-II), Labour Policy, etc without ensuring its synchronisation with other documents. For devising policies, inputs also come from bilateral and multilateral donors for various sectors.

A few of them can be cited as example like a World Bank report on “Role of Economic Policies in Protecting the Environment: The Experience of Pakistan”, WB report on “Higher Education Policy Note: An Assessment of the MTDF”, UNIDO’s Industrial Policy and Environment in Pakistan, Policy Making in Pakistan Population Programme and Boston Group publication on higher education in Pakistan.

The donors including the IMF, WB, ADB and others launched a number of policy-level reports on various sectors of Pakistan, but there was a lack of accountability on their part. Citing an example, sources said, the WB officials were equally responsible for devising a faulty Social Action Programme (SAP) during the 90s, which resulted in wastage of billions of dollars in loans obtained by Islamabad, but no accountability was done against the WB high-ups.

http://www.thenews.com.pk/daily_detail.asp?id=67839

 

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Heavy downpour: Production, export sectors suffer badly​

KARACHI: The industrial production and export-oriented sector suffered badly on Friday from the current spell of rain in the city, which caused major power outage and accumulation of rainy water in the factories located in the low lying areas in various industrial estates of the city.

Also, the thin public transport on the roads of the city kept the workers away from the work places, which resulted in slowing down the industrialist activities in the city.

Although, industrialists were unable to give exact figures of the losses they suffered from the two days of heavy downpour in metropolis, they put the production losses around fifty percent and failure to honour export commitments as well.

Industrialists said that though, they did not experience the long-hours power breakdowns this time because of rain, however it impacted the business to some extent. The main factor, as they pointed out, flood like situation in the industrial areas and inability of workers to reach the factories because of thin public transport and bad weather conditions.

Exporters also complained of facing difficulties in transportation of export shipments because of condition of roads, which turned worse because of accumulation of rainy water, making it difficult for the heavy vehicles to move to and from the industrial areas.

Putting the industrial losses in millions of rupees, they lashed at civic agencies for their inefficiency to act to provide relief to citizens in such a situation and make possible the drainage of rainy water properly particularly in the industrial areas so that wheel of industry could be kept moving uninterrupted.

Site Association of Industry Chairman Imran Shaukat put the production losses around 50 percent due to rain related problems and said that movement of export shipments also suffered during the day.

Mr Shaukat pointed out that power outage caused around 30 percent losses in the production while around 25 percent losses were incurred due to accumulation of rainy water in the factories located in the low lying areas. SITE industrial area has over 3,000 units, which has around 550,000-600,000 employees.

Korangi Association of Trade and Industry Chairman Masood Naqi put production losses in millions and said around 20 percent losses were estimated in the production because of rain related problems. Whereas the export sector suffered badly as most of the exporters were unable to transport their shipments to port because of difficulties in movement of vehicles from industrialist area due to flooding of roads in the areas.

FB Area of Association of Trade and Industry Chairman Masrood Ahmed Alvi told Daily Times that industrial activities in the area also suffered badly with the major losses recorded by the industry. He also complained about the turning up of workers in low number, accumulation of rainy water and bad condition of roads, which caused hindrances in movement of traffic. The FB industrial area has 2,500 units in which 90 percent are export-oriented units. The export shipments also suffered because of this low production and low attendance of the staff, he added.

An industrialist from North Karachi Association of Trade and Industry said that industrial activities were also at low ebb because of rain related problems. The area comprises mostly of 2,500 small and medium units employing 125,000 people.

http://www.dailytimes.com.pk/default.asp?page=2007\08\11\story_11-8-2007_pg5_1

 

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IRSs of financial sector grow to Rs 162b: SBP​

KARACHI: The volume of Interest Rate Swaps (IRSs) in the Pakistani financial sector grew significantly to Rs 162 billion in March 2007 from around Rs 98 billion in March 2006, according to State Bank of Pakistan’s Banking System Review released recently.

It says that in relative terms, IRS transactions are nearly half of the total derivatives volume. FX options stand second under derivative products, and it holds around 22 percent share of the total derivatives market. Its volume grew from Rs 18 billion to Rs 74 billion during the same period.

Cross currency swaps (CCS), which currently are allowed against the one-off approval of SBP, also holds a major share of the Over The Counter market. With its 30 percent overall share, its volume as of March 2007 was at Rs 101 billion. This indicates that corporate are opting to manage their PKR interest rate swaps through CCS.

The State Bank says: “Although the derivatives market is growing in Pakistan, however, it is facing some teething problems, of which the major are; a less developed market for the derivatives business, less number of authorised derivatives dealers and absence of non-market maker financial institution, unavailability of the market data and the absence of benchmarks for vanilla products.”

The central bank says that once these problems are addressed, the derivatives market is expected to grow at a higher pace and would largely serve to provide risk management solutions.

Although derivatives are a relatively new concept in Pakistan, actually started in year 2003, its volume grew many folds in the last couple of years. The number of authorised derivatives dealers (ADD) has increased to five from the three during the last year. However, till now, no institution has obtained the status of non market maker financial institution (NMI). Nevertheless, the institutions, which are not ADD, can also undertake derivative business transaction with prior approval from SBP.

As for the development of over the counter (OTC) financial derivatives market, Financial Derivatives Business Regulations (FDBR) issued by SBP in November 2004 allows three types of transactions; IRSs, FX options and Forward Rate Agreements (FRAs).

Of these three, products allowed under FDBR, the first two appear to hold the major share of OTC market since FRAs are very few. The FRAs going extinct, may be attributed to the perceptions of interest rates as well as the absence of a developed market, which is imperative to create demand for such products.

http://www.dailytimes.com.pk/default.asp?page=2007\08\11\story_11-8-2007_pg5_3

 

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National Transport Policy 2007-08: Rs 60b allocated stet transport and communication​

ISLAMABAD: The government has set an amount of Rs 60 billion for the development of transport and communication sector. This amount includes Rs 29.4 billion for the budgetary programme and Rs 29.6 billion for the budgetary corporations programme.

The transport development programme for the year 2007-08 is based on a broad strategy that includes establishment of a multi-modal transport system with emphasis on asset management with consolidation, upgrading, rehabilitation and maintenance of the existing system and enhanced private sector participation in sector development and institutional capacity building, with the use of modern technology, procedures and processes to increase sector efficiency.

The strategy also takes into account the regional and domestic dimensions, particularly in relation to rail, road and ports and shipping sub-sectors, enhancing regional connectivity to improve links to the Central Asian States, Iran, Afghanistan and India. According to the annual plan for the year 2007-08, Pakistan Railways would be transformed into a corporate entity making profitable business through its core activities. Seven fast freight trains have already been introduced from Karachi to Lahore / Faisalabad and back. An allocation of Rs 11.6 billion has been made for 2007-08.

Works on track rehabilitation of Pakistan Railway network, procurement of 69 DE locos, procurement / manufacture of 625 passenger coaches, procurement of 2300 bogie high capacity wagons, rehabilitation of 450 passenger coaches, re-commissioning of 55 stabled DE locos, doubling of track on Lodhran - Raiwind sections, and other on-going projects would continue.

For the ports and shipping sector the annual plan for the current year 2007-08 reveals that a ports master plan study, defining the roles of Karachi Port, Port Qasim and the Gwadar Port would be prepared. The business plans of the three ports would be completed.

http://www.dailytimes.com.pk/default.asp?page=2007\08\11\story_11-8-2007_pg5_5

 

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2nd Generation of Market Reform Programme: Need to convert SECP intoFSCP stressed​

ISLAMABAD: The Second Generation of Capital Market Reform Programme seeks to convert Securities and Exchange Commission of Pakistan (SECP) into the Financial Services Commission of Pakistan (FSCP).

FSCP would be in charge of regulation and supervision of Non-Banking Financial Institutions (NBFIs) by clearly codifying its powers, functions, governance, and accountability in line with international best practices.

According to the report and recommendation of the Additional Development Bank (ADB), President to the Board of Directors on Programme Loan and Technical Assistance Grant on Second Generation of Capital Market Reform Programme. Based on these recommendations, ADB had approved $400 million for the three-year second phase of the capital market reforms.

The government is asked to draft and submit to parliament a law codifying the FSCP.

This law would establish FSCP, based on SECP, and strengthen its enforcement powers by enhancing its independence, governance, and accountability.

The law should be a framework law that incorporates by reference to sector-specific laws (such as the laws governing securities markets and intermediaries, insurance, private pension funds, and non-bank financial companies) FSCP’s powers to administer those laws. The establishment of FSCP does not preclude further integration of responsibility for regulation and supervision of banking and non-banking financial services at a later date (for which the framework law would have to be amended). However, given the substantive capacity building needs to establish a fully consolidated financial sector agency and the considerable transaction cost typically involved in merging regulatory agencies with different cultures and capacity, this would be beyond the scope of the programme.

In recent years, financial sector regulatory bodies have been granted greater independence in many countries to ensure that they can professionally perform their statutory functions in the public interest and be largely free from political interference. An agency responsible for regulation and supervision of NBFIs and markets should, in general, have authority and capacity comparable to that of the agency in charge of banking.

Toward the end of the programme, FSCP is recommended to undertake a self-assessment of compliance with international best practices in the regulation and supervision of securities markets and private pension funds. This assessment could provide the basis for formulating another round of policy reforms to address remaining weaknesses, if any.

Further under the programme, SECP (FSCP) is to issue guidelines on obtaining information about unlisted publicly tradable companies. Stock exchanges will continue to provide on their websites disclosed information of listed companies. Therefore, investors will have a better access to annual reports and other disclosed information of both listed and unlisted publicly tradable companies, which will enhance transparency and efficiency of the capital market. The government is to grant SECP (FSCP) the power to approve or disapprove audit firms authorised to audit non-bank financial companies licensed by SECP (FSCP), listed companies, and publicly tradable companies. This will strengthen SECP’s (FSCP’s) capability to ensure quality and consistency in the financial information available to investors and the regulator.

http://www.dailytimes.com.pk/default.asp?page=2007\08\11\story_11-8-2007_pg5_7

 

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Project management : French experts to train Pak officials​

ISLAMABAD: To enhance the capacity building of officials, the government has arranged a training course on ‘Project Management’ for increasing project management capability with the collaboration of Lille School of Management France and Pakistan Planning Management Institute.

Renowned world-class French experts will provide training to the participants (total 30 officials, of which five will be from Planning Commission). During the training, which is first of its kind for officials BPS 19 and above, new techniques of project management would be provided. Those officials will get training who are working on assignment relating to project planning appraisal and implementation.

http://www.dailytimes.com.pk/default.asp?page=2007\08\11\story_11-8-2007_pg5_21

 

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Telenor Pakistan introduces world recharge​

ISLAMABAD: Telenor Pakistan has engaged ezetop Ltd, an Irish based international mobile phone services company, to provide yet another, first of its kind service in the country: International Recharge.

Through this service Telenor Pakistan customers will become the only privileged subscribers to receive credit from their families living abroad. Chief Marketing Officer Telenor Pakistan Sigvart Voss Eriksen, excited about the milestone achievement said: “We are delighted to have ezetop on board in introducing another industry first service in Pakistan. International Recharge will allow thousands of people living in Middle East, UK and USA to send instant and practical support home.”

Ezetop’s Head of Business Development David Shackleton said this was a significant development for Pakistani communities around the world who could now empower their relatives at home in Pakistan to stay in touch whenever they want. With international recharge facility, family and friends living abroad will soon be able to purchase Telenor Pakistan vouchers available in different denominations from any ezetop distribution partner abroad and send the voucher details to their loved ones in Pakistan who use Telenor Pakistan prepaid connection.

http://www.dailytimes.com.pk/default.asp?page=2007\08\11\story_11-8-2007_pg5_23

 

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Musharraf concerned at slow economic progress ​

ISLAMABAD (August 12 2007): President General Pervez Musharraf said here on Saturday that the government, nation and judiciary should be in conciliatory mode for Pakistan's stability and smooth run-up to the upcoming general elections.

Talking to All Pakistan Newspapers Society (APNS) executive committee members at the Presidency before his departure for Kabul to attend Afghan jirga, he termed the next three months as critical, and stressed the need for an effective strategy to meet political and economic challenges upfront.

The president said he was concerned over slow economic progress, and wanted the government to seize downslide to maintain existing pace of growth for the benefit of the people.

He said that for the first time since his take-over the international rating agencies had reported downturn in Pakistan's economy, which was a cause of concern for him. He said that stability and transformation of the economy was a prerequisite for transmitting its benefits to the people of Pakistan.

He deplored that Pakistan's two key allies in war on terrorism had issued travelling advisories, suggesting to their citizens to stay away from Pakistan. He said that such negative statements made adverse effect on Pakistan to slow down its pace of economic growth.

He said Pakistan had fetched $6.7 billion foreign direct investment (FDI) in 2006-07, and it targets $10 billion FDI in 2007-08. He said FDI has a snowballing effect on the economy as it encourages many more parties/companies to bring investment to a number of new areas to quicken the pace of progress of any country.

President Musharraf said that the Sharifs, Benazir Bhutto (BB) and Altaf Hussain should not come to Pakistan prior to presidential and general elections. His argument in support of the demand was that return of the exiled and self-exiled political leadership before the presidential and general elections could create political and social turmoil that could result in Pakistan's instability.

He added that post-election environment would be conducive for their comeback. The President ruled out the possibility of martial law, and said that he does not believe in any such step, in the given situation. However, on the question of emergency, he said that the option was talked about on August 8, but it was not exercised for various reasons. He dispelled the impression that the option of emergency was put off on the intervention of US Secretary of State Condoleezza Rice. He said that Rice had phoned him twice during daytime on August 8, but her calls could not be made through, and since in the afternoon consultations had started on emergency, she could reach him on telephone at midnight.

He said that the US State Secretary discussed with him the issue of Afghan jirga and his presence. The President said Rice wanted him to attend the Afghan jirga to make it a success to address several bilateral issues between Kabul and Islamabad, besides creating a better understanding between the two governments on anti-terror campaign.

He said that the voters' list and condition of national identity card for voting were something between the government and Election Commission of Pakistan (ECP) and they should sort it out in such a manner that all parties to the issue accept it with an open mind and heart.

He said that present assemblies will elect him as President for the 2nd term. However, he will seek endorsement of his election from the next assemblies. APNS team greeted President General Pervez Musharraf on his 64th birthday.

http://www.brecorder.com/index.php?id=604629&currPageNo=1&query=&search=&term=&supDate=

 

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Information technology products: Shaukat tells MoC to find new markets ​

ISLAMABAD (August 12 2007): Prime Minister Shaukat Aziz has directed Commerce Ministry to start aggressive efforts for identification of new markets and to introduce information technology (IT) products, granite stones and other value-added items, sources in the Ministry told Business Recorder here on Saturday.

The PM gave these directions while chairing a special Cabinet meeting on July 18, convened to approve the Trade Policy 2007-08 wherein export target was fixed at $19.2 billion.

The Prime Minister was also of the view that trade with China must be reviewed and immediate steps be taken to enhance trade relationship with special reference to Free Trade Agreement (FTA). Sources said that an inter-ministerial delegation is leaving for Beijing shortly to discuss trade and investment-related issues, and added that Chinese investors would be offered more incentives.

"Exports is the domain of the private sector. The government is to carry out trade diplomacy for the identification of export markets," sources quoted the Prime Minister as saying.

Aziz also advised that special attention be given to bring down cost of doing business, and enhance managerial capacity and labour productivity through skill development so that the country is able to compete in the international market, sources said.

A number of suggestions were made during the meeting which included emphasis on value-added products, focus on SMEs, ambitious plan for fruits and vegetables in their area of growth as well as cold areas to reduce storage cost on account of power consumption, allowing import of construction machinery by the overseas Pakistanis, focus on marketing outlets abroad, public private partnership in the different manufacturing areas, provision of protection to football and surgical instruments industry of Sialkot and diversification of export portfolios to new markets.

Sources said that the Cabinet rejected two proposals of Commerce Ministry regarding duty-free import of sports motorbikes and vintage and classic cars being used for sports rallies.

"Import of vintage and classic cars and sports motorbikes would not be viewed favourably by the common man and its import may not be allowed," sources quoted Prime Minister as arguing against the proposal. They said that the Commerce Ministry would issue SRO for incorporating amendments in export and import policy order after the Law Ministry clears the wording. The Cabinet directed the Industries Ministry to take measurers for the development of small and medium enterprises (SMEs).

The Cabinet also directed that clean cotton program, already approved by the government, should continue, Revenue Division should rationalise duty on shuttlecocks and Navtec should be provided more funds for skill development.

http://www.brecorder.com/index.php?id=604679&currPageNo=2&query=&search=&term=&supDate=

 

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SPI-based inflation up 7.56 percent ​

ISLAMABAD (August 12 2007): The SPI-based inflation is 7.56 percent up on week ending August 9 over the same period last year with wheat flour dearer by 11.82 percent and rice basmati 53.51 percent. The inflation has been 9.48 percent for the low-income group as compared to 5.38 percent earning over Rs 12,000 per month.

The date released by the Federal Bureau of Statistics (FBS) on Saturday showed no sign of relief for the poor as the prices of core kitchen items have been increasing regularly. The perpetual rise in the prices of essential kitchen items have been eroding the budget of those who are earning between Rs 3,000 and Rs 5,000.

The cooking oil was 27.60 percent dearer over last year, wheat 9.25 percent and vegetable ghee 27.84 percent. The regular increase in the prices of core food items such as wheat, cooking oil, pulses and milk have been disturbing the budget of the poor.

Moreover, there has been no check on prices varying from market to marker resulting in disputes among vendors and buyers. The section in the local government system that provides a mechanism to regulate the market prices was flatly ignored.

The SPI inflation has been recorded 157.61 percent on August 9, 0.63 percent up against 156.62 over last week. The low-income group was more affected by the price-hike, as inflation was recorded 9.48 percent for Rs 3,000 earner against 5.38 percent for those earning above Rs 12000.

The week under review shows that price-hike was 9.48 percent for people earning between Rs 3,000 and Rs 5000 and 8.20 percent for those earning between Rs 5,001 and Rs 12,000. The SPI bulletin, based on data collected for about 53 items from 17 centres showed that 21 items registered increase, 10 items declined, while 22 remained unchanged.

Further analysis of the data showed that 19 items were dearer by double digits over last year. These included masoor pulse washed 32.19 percent, red chillies 75.73 percent, milk powdered 30.06 percent, mustard oil 32.83 percent, veg ghee tin 27.84 percent, cooking oil tin 27.60 percent, cooked dal plate 11.06 percent, veg ghee loose 37.94 percent, milk fresh 13.77 percent.

The prices of egg is 22.23 percent dearer over the last year, wheat flour 11.82 percent, rice basmati 53.51 percent and curd 12.80 percent, rice Irri 39.37 percent, cooked-beef plate 10.88 percent and sandal gents Bata 25.06 percent. Among these items, in a short span of one week, the prices of tomatoes went up 16.78 percent up, onions 12.42 percent, chickens 5.22 percent, breads plan mid-size 2.95 percent and potatoes 3.60 percent.

http://www.brecorder.com/index.php?id=604655&currPageNo=1&query=&search=&term=&supDate=