Pakistan Economy - News & Updates - Archive

[ejaz007]

Yemen seeks support in pharmaceutical surgical sectors

ISLAMABAD: The Yemen Ambassador to Pakistan, Abdul Elah Mohamad Hajar, on Wednesday asked for Pakistani support in developing the Yemen’s Pharmaceuticals and surgical industry.

As Pakistan had achieved tremendous development in both the sectors, the ambassador said the assistance in this regard would be very fruitful for both the countries. The ambassador expressed these views during a meeting with President Islamabad Chamber of Commerce and Industry (ICCI) Ijaz Abbasi here today. He said that both Yemen and Pakistan could work together in different sectors of the economy, particularly in trade.

For further enhancing the bilateral trade, Hajar said the Yemen Embassy had increased the issuing of visas for Pakistani businessmen. It has considerably increased bilateral trade between the two countries. At present he said the total volume of bilateral trade was $82 million. Pakistan export to Yemen was $77.9 million and its imports are $4 million and thus the balance of trade was in favour of Pakistan.

There were a number of sectors, in which joint ventures could be established between the local and Yemen businessmen. Despite of some deficiencies, the atmosphere of Pakistan was very suitable for foreign investors due to its strategic location in South Asia. Pakistan could be used as a gateway for whole Central Asian Republics due to easy access to these markets. The country’s stock exchange was going well and geographic condition of Pakistan is strategically important as the newly constructed Gwadar Sea Port could play a vital role in expanding trade activities in the region. About the manufacturing of surgical instruments, he said the country was manufacturing two types of instruments, i.e. disposable and reusable instruments. ijaz kakakhel

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan ranked 89th in Global IT Report ​

Thursday, April 10, 2008

ISLAMABAD: The World Economic Forum Global Information Technology Report 2008 has ranked Pakistan at 89th position, out of 127 countries, in terms of preparedness to effectively promote business, improve investment climate and develop infrastructure.

The Competitiveness Support Fund (CSF), a partner institute of the World Economic Forum (WEF) in Pakistan, released the report on Wednesday.

This year’s ranking shows a five-point decline for Pakistan from last year when it was ranked 84th out of 122 countries.

Although telecoms operators are aggressively upgrading their networks’ infrastructure to launch broadband data and multimedia services, Pakistan still ranks low in terms of the cost of broadband and security of Internet servers. Furthermore, the number of days and procedures required to enforce a contract in Pakistan is also a key challenge in achieving a sustainable impact. The decline is a result of a weakened political and regulatory environment and infrastructure environment, which refers to network facilities, network capacity and capabilities.

Published for the seventh consecutive year, the Global Information Technology Report is the world’s most comprehensive and authoritative international assessment of the impact of information and communications technologies on the nations’ development and competitiveness.

“It is evident that technology is playing a leading role in accelerating economic growth and promoting development,” said CSF Chief Executive Officer Arthur Bayhan.

“A coherent government vision on information and communications technologies, coupled with an early focus on education and innovation, is the key to spur network readiness and to lay the foundations for sustainable growth.”

The support for CSF is part of the $1.5 billion in aid that the US government is providing, through USAID, to Pakistan over five years to improve economic growth, education, health, governance and earthquake reconstruction.

Pakistan ranked 89th in Global IT Report

 

[Neo]

2,200MW more electricity to be produced ​

Thursday, April 10, 2008

ISLAMABAD: The Ministry of Water and Power has finalised a plan to produce an additional 2200 MW electricity within a year in line with the directives of the prime minister.

This was informed to the members of Senate Standing Committee on Water and Power which met on Wednesday under the Chairmanship of Senator Hafiz Malik Qadri to receive briefing on current power crisis in the country.

The committee was informed that as a result of the measures taken by the government the shortage of electricity would decrease and year 2009 would be a load manageable year.

The load shedding in the country is likely to come to an end by year 2010, the Committee was told.

Secretary Ministry of Water and Power Ismail Qureshi gave a brief account of the overall power shortage and the steps being taken to overcome the crisis.

MD Pakistan Electric Power Company (PEPCO) gave a comprehensive account of the background of the country power sector.

The meeting was told that a sustained and aggressive action plan based on a combination of supply as well as demand and continuing conservation of energy plans are likely to eliminate power shortfall by 2011.

2,200MW more electricity to be produced

 

[Neo]

IDB finances new projects in Pakistan ​

Thursday, April 10, 2008

JEDDAH: The Board of Executive Directors of the Islamic Development Bank has approved new $570.4 million for financing nine development projects in Pakistan, Iran, Uzbekistan, Niger, Cote d’Ivoire, Guinea, Syria, Morocco, Qatar, and grants from Waqf Fund in favour of six Muslim communities in Bosnia- Herzegovina, India, the USA, Kenya and China.

The board approved $93 million Istisna financing for reconstruction of rural infrastructure for victims of October 2005 earthquake in Shangla & Kohistan districts under the IDB’s earthquake assistance package for Pakistan.

$121.44 million instalment sale for Abadan Combined Cycle Power Plant Project, Iran. $15 million Second Line of Financing to National Bank of Uzbekistan. $50 million Loan Financing & Instalment Sale for Construction of Kandadji Dam Project, Niger. $37.3 million Istisna financing for Upgrading, Expansion of Abidjan International Airport Freight Terminal, Cote d’Ivoire.

IDB finances new projects in Pakistan

 

[Neo]

Govt to protect overseas Pakistanis’ investment in country: Khurshid ​

Thursday, April 10, 2008

ISLAMABAD: Minister for Labour, Manpower and Overseas Pakistanis Syed Khurshid Ahmed Shah on Wednesday said the government would provide complete protection to the investments made by Overseas Pakistanis in the country.

Speaking to a 15 member delegation led by Chaudhry Liaqat Ali, Lord Mayor of London Borogh of Waltham Forest, United Kingdom, here, the minister said the government would give complete assurance to the Overseas Pakistanis’ investors to come forward and make investment in the country for the progress and prosperity of the people.

Managing Director of the Overseas Pakistanis Foundation (OPF) Syed Nayyer Hasnain Haider and Director Administration Habib ur Rehman Khan were also present in the meeting.

The minister said that OPF is working to establish an industrial estate for Overseas Pakistanis at Chakri Interchange in the collaboration with the government of Punjab.

“This Industrial Estate would be attractive point for Overseas Pakistanis Investors,” he said.

He urged that the Pakistani community living abroad should play their due role in building of the country by making investment of their valuable earnings.

Shah assured the delegation that the issue of right of vote to Overseas Pakistanis has been taken up with the Election Commission to evolve a mechanism through which they could be able to exercise their right of vote from abroad.

The minister asked the delegation to bring suggestions and proposals for the welfare of Overseas Pakistanis. He stressed the need for establishing strong interaction with Overseas Pakistanis, so that their problems could be addressed effectively.

He appreciated the contribution of Overseas Pakistanis which they made by remitting billion of dollars to Pakistan.

Govt to protect overseas Pakistanis’ investment in country: Khurshid

 

[Neo]

Govt to protect overseas Pakistanis’ investment in country: Khurshid ​

Thursday, April 10, 2008

ISLAMABAD: Minister for Labour, Manpower and Overseas Pakistanis Syed Khurshid Ahmed Shah on Wednesday said the government would provide complete protection to the investments made by Overseas Pakistanis in the country.

Speaking to a 15 member delegation led by Chaudhry Liaqat Ali, Lord Mayor of London Borogh of Waltham Forest, United Kingdom, here, the minister said the government would give complete assurance to the Overseas Pakistanis’ investors to come forward and make investment in the country for the progress and prosperity of the people.

Managing Director of the Overseas Pakistanis Foundation (OPF) Syed Nayyer Hasnain Haider and Director Administration Habib ur Rehman Khan were also present in the meeting.

The minister said that OPF is working to establish an industrial estate for Overseas Pakistanis at Chakri Interchange in the collaboration with the government of Punjab.

“This Industrial Estate would be attractive point for Overseas Pakistanis Investors,” he said.

He urged that the Pakistani community living abroad should play their due role in building of the country by making investment of their valuable earnings.

Shah assured the delegation that the issue of right of vote to Overseas Pakistanis has been taken up with the Election Commission to evolve a mechanism through which they could be able to exercise their right of vote from abroad.

The minister asked the delegation to bring suggestions and proposals for the welfare of Overseas Pakistanis. He stressed the need for establishing strong interaction with Overseas Pakistanis, so that their problems could be addressed effectively.

He appreciated the contribution of Overseas Pakistanis which they made by remitting billion of dollars to Pakistan.

Govt to protect overseas Pakistanis’ investment in country: Khurshid

 

[Neo]

President’s visit to China: Agreements to be signed to attract Chinese investment​

ISLAMABAD: During the President of Pakistan’s visit to China both the countries are set to sign agreements or MoUs on Chinese investment in Gwadar Oil City, incentives for setting up of Special Economic Zones, Gwadar seaport development programme for expansion, oil and gas exploration by Chinese companies.

All these initiatives are considered to be essential for the success of Trade Energy, Transport and Industrial Corridor between Pakistan and China, a senior government official told Daily Times on Wednesday.

A Steering Committee headed by Deputy Chairman Planning Commission and comprising Minister of State for investment, Secretary General Revenue Division, Prime Minister’s Advisor on Energy and members from all four provinces, and concerned federal ministries have developed proposals including incentive packages for Chinese investors for realising the targets.

Energy Advisor Wing has developed the oil concessions for Chinese companies with the objective of attracting them to bring in at least 200 rigs to Pakistan. This policy would be open to other interested exploration companies as well.

To implement the initiatives for realising the objectives of the Corridor, President has already approved constitution of a 16 member Policy and Supervisory Board and constitution of over 10 members Steering Committee.

The Corridor would require a set of 14 important measures to make this initiative a success. It has been decided that Pak-China bilateral working group would be constituted to prepare and finalise action plan for building the Multi-Modal Corridor. General attractive concessions would be given for the development of Special Economic Zone (SEZ).

Site for China-Saudi Oil refinery in proposed Oil City at Gwadar should be identified and terms and conditions for investment to be decided on priority basis. Government of Balochistan has already been asked to identify state land for development of projects at Gwadar out of which 50 square kilometers land be allocated to Chinese developers at nominal rates for establishment of (SEZ).

The Gwadar Sea Port development programme, which has been approved, would be negotiated with Chinese Investors to attract investment in this area. Financial incentives equal or batter than Chinese SEZ would be provided to the investors in the said area.

Under the Corridor Plan a high speed and capacity link of Gwadar with international optical fiber cables is to be established.

Federal government has already showed its willingness to resolve the issue of land for economic zones in different parts of the country, in addition to special lease of land at Karachi, Lahore, Islamabad and Peshawar for international entrepreneurs investors including Chinese companies to build 15 to 20 story offices and business support centres residency blocks for the perspective investors.

The Policy and Supervisory Board has been constituted for providing strategic vision laying down policy guidelines, ensuring timely decisions and regularly monitoring the progress. It has been decided that President of Pakistan will head the Board and other members are Prime Minister, Federal Ministers of Ports and Shipping, Communication, Railways, Petroleum and Natural Resources, Industries and Production, Commerce, Water and Power, Governor and Chief Minister Balochistan, Minister of State for Investment, Deputy Chairman Planning Commission, Secretary General Finance, Secretary General revenue Division and Secretary Foreign Affairs.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Industrial production witnesses slackened growth​

KARACHI: Industrial production slowed down further by 5.29 percent in first seven months of current financial year compared to corresponding period of last year, official data indicated on Wednesday.

“The slow down in industrial output, caused by numerous factors has raised the fears of failure to meet the annual target for Large Scale Manufacturing (LSM)”, analysts believed.

State Bank of Pakistan (SBP) in its 2nd quarterly report recently also pointed out domestic as well as external factors are responsible for the relatively slower growth in this sector compared to the stellar performance of preceding years.

“These factors include the continued strong increases in the international commodity prices, domestic energy woes and dampened demand (particularly for textile exports). Economic losses in the aftermath of 27th December 2007 have further weakened the chances of meeting the annual target”, Central Bank citing the reasons for slower growth in industrial production said.

The industrial growth has seen steady decline in the last three years as it has plummeted to 8.8 percent in 2006-07 from 19.9 percent in the 2004-05 in the wake of rising cost of production, which led to closure of many industrial units especially in textile sector and hampering of new investment in the capacity expansion.

Analysts said that this decreasing trend will also adversely impact the GDP rate, which already is forecasted to remain in between 6 to 6.5 percent by the end of current fiscal year, against the target of 7.2 percent.

It would also also have negative implications for the country’s exports, which are unlikely to reach the target of $19.2 billion in present situation.

The LSM index is based on the latest production data of 100 items provided by Oil Companies Advisory Committee (OCAC), Ministry of Industries & Production and provincial Bureau of Statistics (BoS).

The breakup of data shows that OCAC index registered growth of 5.05 percent during the first seven months of this fiscal year followed by ministry of industries index, which grew by 6.057 percent, and provincial BoS index registered 4.06 percent growth over the same months of last year.

On the other hand, in month of January, OCAC index posted negative growth of 1.23 percent, Ministry of Industries index grew by 13.65 percent and Provincial BoS was up by 1.50 percent over the same month of last year.

According to the Federal Bureau of Statistics (FBS) figures, in petroleum sector, production of Jet fuel oil declined by 13.81 percent, kerosene oil down by 1.89 percent, diesel oil down by 3.43 percent, LPG down by 4.43 percent.

The production of motor spirits was up by 6.28 percent, high-speed diesel up by 11.32 percent, furnace oil up by 7.95 percent.

In the food sector, vegetable ghee production declined by 2.63 per cent, cooking oil production remained flat and starch and its products were up by 4.10 percent. Wheat production grew by 4.14 percent and beverages 41.50 percent.

Among the electrical items, refrigerators recorded a growth of 8.28 percent, deep freezers down by 2.90 percent, electric bulb up by 7.28 per cent, electric tubes down by 2.60 percent, electric motors down by 14.63 per cent, electric meters down by 36.80 percent and transformers down by 38.34 percent.

Production of air-conditioners went down by 13.93 percent, electric fans down by 2.28 pe cent, switch-gears up by 29.45 percent, TV sets up by 24.41 percent and bicycles up by 4.40 percent.

Production of paper and board also dropped by 9.86 percent, production of glass-sheets declined by 7.83 percent, billets by down by 12.41 percent and HR sheets down by 8.43 percent.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

‘Germany funds Pakistan’s development, not war on terror’​

LAHORE: Germany does not finance Pakistan for the war on terror like the US, but for the development of the people of Pakistan. The European Union provided 100 million euros in humanitarian aid for the October 8, 2005 earthquake-stricken areas of Pakistan, said German Ambassador to Pakistan Dr Gunter Mulack on Wednesday.

He was delivering a lecture on Security Concerns About Pakistan: The European View organised by the Quaid-e-Azam Political Science Society at the GCU.

He said, “We should co-operate and try to preserve peace and stability around the world. People with superficial knowledge beget wrong interpretation of religious teachings. We should teach people about inter-cultural and inter-civilisation harmony.”

He said that pluralism, tolerance, acceptance, respect for others could lead to international peace and stability. “Europe’s economic prosperity mainly depends on raw material and goods. It has an elementary interest in peaceful competition, open world trade system and unrestricted transportation facilities and access.”

He said that in FATA, the NWFP and Balochistan there was a need to start a dialogue with the elders in order to improve the law and order situation there.

Answering a question on observing purdah by the Muslim girls in Germany, he said Muslim girls in all universities and colleges were allowed to cover themselves or wear scarves. He said Islam had become a European religion and it was growing at a fast pace there. GCU Vice Chancellor Prof Dr Khalid Aftab praised Dr Gunter for his insightful lecture. He also awarded the university shield to Dr Gunter Mulack.

Political Science Department Chairman Prof M Azhar, AVM (r) Anwar Mehmood, Arts and Social Sciences Dean Prof Dr Khalid Pervaiz, Faculty of Sciences and Technology Dean Prof Dr Aminul Haq Khan, and students attended the lecture.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Load shedding to continue till 2010​

* NA body calls for nationalisation of KESC
* Plan chalked out to produce additional 2,200 MW power within year​

ISLAMABAD: The government said on Wednesday that the countrywide electricity load shedding would continue till 2010, prompting strong protests from the Senate Standing Committee on Water and Power over the worsening power crisis.

Presided over by Senator Hafiz Abdul Malik Qadri, the Senate body called for the nationalisation of the Karachi Electric Supply Corporation (KESC).

Water and Power Ministry Secretary Ismail Qureshi and Pakistan Electric Power Company (PEPCO) Director General Munawar Baseer Ahmed briefed the committee on the current situation and plans to improve it. “In 2010, we will be quite ‘okay’. This is what our predictions are,” Qureshi told angry committee members, who demanded an early end to the load shedding.

Qureshi and Ahmed informed the committee that there had been an electricity deficit of 3,154 megawatts (MW) until March, as the government’s power generation capability was 9,856 MW against the demand of 13,010 MW.

They said that the government estimated a net deficit of 820 MW by the end of this year and that the situation would further improve by 2010. The committee members questioned these estimates and demanded that a policy to overcome the power crisis be formed immediately.

Plan: The committee was told that a plan had been tabled to produce additional 2,200 MW of electricity within a year, in line with directives from Prime Minister Yousaf Raza Gillani.

The members pressed the authorities to establish hydro-electricity generation plants, and to look for alternative energy resources like burning coal to ease the situation. They said agriculture and industry had been adversely affected by load shedding. Some members, including Senator Raza Muhammad Raza, voiced opposition to the privatisation of the KESC, claiming that it had resulted in the worst electricity shortage Karachi had seen. They said the nationalisation of the KESC was the only solution to resolve the problem.

The committee directed the Water and Power Ministry and other authorities concerned to present a complete report on the power crisis in Karachi in its next meeting. It also directed the ministry to catch the “big fish” involved in power theft.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Swedish firm to help boost farm output​

KARACHI, April 9: An international giant, Ikea, a company of Swedish origin, has agreed, in principle, to provide technical support to a project of the Ministry of Agriculture and Livestock to ensure compliance of global agricultural practices (GAP).

Dr Qadir Bux Baloch, Agriculture Development Executive Commissioner, told Dawn over telephone from Islamabad that the deal would be signed shortly between Ikea and the crop maximisation programme under which about 1,000 villages would be targeted to boost agricultural production, with an active involvement of the farming community.

According to him, the current world scenario is not so congenial for the country because Pakistan’s farming practices are perceived to be too primitive and chaotic.

“To be able to make the country’s presence felt internationally in the commodity market, the adoption of certain standards in agriculture production has become absolutely necessary.”

The collaboration with a global player would address the issue of meeting international standards in commodity trade.

Under the programme, the ministry has identified certain districts to launch this extensive programme that aims to empower the farming community by ensuring that it shares the benefits of better international prices and play its role in raising the agricultural production to feed the local demand and produce exportable surpluses.

He said the said the company that had earlier been involved, in collaboration with the World Wildlife Programme on Integrated Pest Management (IPM) project of the ministry, had shown interest in raising the level of its involvement in the country.

Swedish firm to help boost farm output -DAWN - Business; April 10, 2008

 

[Neo]

Emergency rescue plan approved: Dar ​

ISLAMABAD (April 10 2008): The federal cabinet, which met here on Tuesday with Prime Minister, Syed Yusuf Raza Gilani, approved an emergency rescue programme for bringing Pakistan out of financial crisis, primarily an outcome of Shaukat Aziz government's fudged budgetary figures.

Finance Minister, Ishaq Dar, gave a detailed presentation to the cabinet on the wrongdoings of Shaukat Aziz government, seriously damaging Pakistan's fiscal discipline.

Later on, briefing on the cabinet decisions Ishaq Dar who was accompanying Information minister, Sherry Rehman, told medimen that the cabinet took serious notice of the previous government's wrong decisions and gave a go ahead signal to an emergency fighting back programme to pull Pakistan out of fiscal mess by implementing a new strategy based on materialising $2.5 billion on war footing from various sources to plug in current account deficit.

He said firefighting business to correct the economy and putting in place a comprehensive fiscal discipline was already under way. He said the new government will bring down inflation to keep the prices of essential items within the common man buying power besides lessening reliance on borrowing from the SBP. He said the new government will also focus on increasing tax to GDP ratio, push up exports and encourage foreign direct investment (FDI) to take the economy on the strong footing.

He said Shaukat Aziz government intentionally presented underestimated figures in the last budget to show good performance to cheat the masses and get the people votes in the February 18, elections. He shared his presentation with the mediamen giving an outlook of the economy the corrective measures needed and the government strong will to overcome the crisis on war-footing.

It listed tempering of wheat production figures, ill timed export at low rates and then import after two months at 100 percent more rates and fudging of 2007-08, budget figures.

He said that the cabinet decided to take the matter of fudged budgetary projection and other wrong decision of the previous government to the Parliament to fix responsibility and hold those accountable who were responsible of creating fiscal crisis and passing on the buck to the elected government.

He said the Parliament will form a committee of the House to summon any body to whom its members will consider was needed for questioning. He avoided to nominate anybody including former Prime Minister Shaukat Aziz for the fiscal crisis. However, he showed confidence that the parliamentary committee will hold the responsible accountable for wrong decisions to damage Pakistan's economy.

The Finance minister added that previous government's performance economic front in the first 8 months was extremely dismal. It missed all major targets. Agriculture growth was 3.8 percent of GDP against its target of 5 percent, large scale manufacturing 7.5 against 8.8 percent, manufacturing and other sectors were 7.1 and 6.8 percent, showing less growth than estimated in the last budget. He said Shaukat Aziz borrowed massively from the State Bank of Pakistan (SBP) which fuel inflation to give new heights to price hike and make the common man life miserable.

Revenue collection was short of target. The Federal Board of Revenue (FBR) collected Rs 535 billion as on March 31, showing shot fall of Rs 33.5 billion and apprehended less revenue collection of Rs 35 billion by June 30.

He said Shaukat Aziz government allocated only Rs 52 billion for power subsidy but it cost Rs 123.5 billion to the national kitty in first 8 months of 2007-08. Oil subsidy was projected at Rs 15 billion and it in actual terms cost Rs 138.5 billion.

He said the new elected government has inherited sick economy with poor fiscal discipline, but being the people's representative it can not just sit and wait for passing on the time and keeping its balance sheet clean.

He said instead doing nothing the new government has taken the challenge of correcting the economy upfront and started a number of corrected measures. He said the new government was focusing on bringing home $2.5 billion in next two months to keep current account deficit at an acceptable level.

He said as on March 31, current account deficit stood at $8.5 billion and if corrective measures had not been taken it could have gone over $10 billion by June 30. He said the pervious governments during 1999 to 2007 added $5 billion in Pakistan's external debt. He said the government will give top priority to agriculture and manufacturing sectors in the policy making for their better performance for economic growth.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Serious economic problems attributed to Shaukat government ​

ISLAMABAD (April 10 2008): The government is facing serious economic challenges attributed to Shaukat Aziz government's economic policies. While being fully cognisant of these challenges, and committed to turning the economy around, the Finance Ministry, nonetheless, lacks specificity of its own reform agenda.

What is required is a visionary policy to improve economic and monetary Finance Minister Ishaq Dar, who on Wednesday gave a detailed presentation to the Cabinet on balance sheet of country's economy as on March 31, 2008, just floated cosmetic proposals like freezing of non-salary expenditure during 2008-09, bringing it to the existing level of the current financial year, official sources told Business Recorder.

According to the revised macroeconomic framework 2007-08, GDP growth was expected to be 6 percent whereas inflation would be 10 percent against the target of 6.5 percent and fiscal deficit has been projected at 9.5 percent of the GDP against the set target of 4 percent during the current fiscal year.

This high fiscal deficit is likely to force the government into taking structural adjustment loans from IMF, which may have grave consequences for policy and on the common man. The country's bond spread has been revised to 600 basis points, against the target of 200 basis points, due to political and economic uncertainty, as the existing spread was 549 basis points.

According to the Finance Ministry, Pakistan's credit rating would be B2/B against the projected rating of B1/B+S, as the current rating was B1/B+N. This rating may be optimistic in the light of the budget deficit. Sources said that FBR's revised revenue target was Rs 990 billion as compared to Rs 1.025 trillion as the July-February (2007-08) revenue collection was Rs 584.4 billion.

They said that money growth would hover around 19 percent against the target of 13.7 percent as it has already achieved 7.5 percent. However, the tussle between the Finance Minister and the State Bank Governor during the first meeting of the ECC may well presage a growth rate different from that given by Finance Ministry.

Current account was projected -9.2 percent of the GDP against the target of -5.9 percent, sources said, adding that the country's forex reserves, which were $16 billion in 2006-07, were projected at $13.7 billion against the target of $17.7 billion. Foreign exchange reserves have been reduced to $14 billion, as of March 31. The Finance Ministry has also projected that reserves/month imports would be around $4.3 billion, against the target of $6.4 billion.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Growth targets revised ​

ISLAMABAD (April 10 2008): The government has revised the growth targets for the current fiscal year as the targets which, according to Finance Ministry, had nothing to do with ground realities as far as economy of the country was concerned.

Sources said that agriculture growth target has been revised to 3.8 percent from 4.8 percent, whereas LSM target would now be 7.5 percent against previous target of 10.5 percent.

Manufacturing target of small and medium sectors has been revised to 7.1 percent against the actual target of 9.9 percent, while growth in other sectors has been projected to 6.8 percent as compared to 7.1 percent. It means that real GDP growth would be 6 percent against the target of 7.2 percent.-MG

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Defence expenditure projections revised upward ​

ISLAMABAD (April 10 2008): Defence expenditure projections have been revised upward, from Rs 275 billion to Rs 350 billion, for the fiscal year 2007-08 as compared to Rs 252.6 billion revised budget in 2006-07. This increase is difficult to justify, given the rhetorical commitment by the newly elected government, to engage in dialogue instead of continuing military operations.

Sources said that interest on payments has increased by Rs 124.8 billion from Rs 374.6 billion to Rs 499.4 billion. They said that net lending for fiscal deficit has been projected to Rs 534.3 billion against the budget target of - 450.6 billion, which has touched Rs -984.8 billion.

The federal government's borrowing from SBP as on April 5 was Rs 382.3 billion, whereas stock as on the same date was Rs 834.4 billion against Rs 452.1 billion as on June 30, 2007. The projected borrowing during the current fiscal year was Rs 441.0 billion and projected stock as on June 30, 2008 was said to be Rs 893.1 billion.-MG

Business Recorder [Pakistan's First Financial Daily]