Pakistan Economy - News & Updates - Archive

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More strength for Lanka, Pakistan bilateral trade
Walter Jayawardhana

Bilateral trade between Sri Lanka and Pakistan will greatly expand following successful talks between President Mahinda Rajapaksa and the Pakistani counterpart Pervez Musharaff in China, Pakistani officials said.

The two Presidents met with their Foreign and Trade Ministers in high level talk on the sidelines of Boao Forum in Hainan last week.

After the People's Republic of China, Sri Lanka is the second country with which Pakistan has signed a Free Trade Agreement.

The two countries have already decided to expand the scope of the Free Trade Agreement to areas not covered so far.

The trade agreement has opened central Asian countries adjacent to Pakistan to new Sri Lankan exports.

The bilateral talks between the two Presidents has elevated trade between the countries to the highest level, Foreign Minister Rohitha Bogollagama told correspondents in Hainan.

Bogollagama said Sri Lanka wanted to see Pakistan back in the Commonwealth soon.

The minister in his comment on Free Trade Agreement said the two countries had Comprehensive Economic Partnership Agreement and they desired to further enhance their cooperation in economic terms.

Sri Lanka News | Online edition of Daily News - Lakehouse Newspapers

 

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Italy’s Eni starts gas output from Pakistan field ​

Wednesday, April 16, 2008

MILAN: Italian oil company Eni SpA has started production from its Badhra natural gas field in Pakistan and completed boosting capacity at the Bhit treatment plant fed by Badhra, Eni said on Tuesday.

The Badhra and Bhit projects have increase the Bhit plant capacity by 17 per cent to 315 million metric standard cubic feet per day, it said in a statement.

Eni has completed commissioning Bhit’s third train, it said.

The Badhra field is about 250 km (155 miles) northeast of Karachi.

“Total investment in the Badhra Development and Bhit Acceleration Project will be approximately $50 million,” Eni said.

Kirthar Joint Venture, the title holder of the Bhit and Badhra gas fields, comprises Eni, with a 40 per cent share, Royal Dutch Shell Plc, with 28 per cent, Pakistan’s Oil & Gas Development Co Ltd with a 20 percent stake, and Premier Oil Overseas BV and Kuwait Foreign Petroleum Exploration Co at 6 per cent each.

Italy’s Eni starts gas output from Pakistan field

 

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KSE hits all-time high of 15,538 points ​

Wednesday, April 16, 2008

KARACHI: The Karachi stock market successfully crossed the 15,500 points psychological level for the first time and concluded at 15,538 points all time high on Tuesday.

Leading benchmark KSE 100-share Index jumped up by 101 points or 0.65 per cent and finished at 15,538 points new record level. As a matter of record, the day session breached through earlier made all time high record level of 15,474 points registered on April 08, 2008.

M. Yousuf at Live Securities said that despite the support by E&P sector, institutional investors were reluctant to enter the market owing to expected meeting among PPP Co-Chairperson and his coalition allies to resolve the judiciary reinstatement issue.

For the last two weeks, market was seeking consolidation near and around 15,400 points resistance level. The political uncertainty and law and order situation, according to market analysts, were not letting the bulls to show their muscles. However, the 100-Index surpassed 15,500 points coveted level in a dramatic move while energy sector led the gainers on board, analyst added.

Analysts questioned the sustainability of index near and around the current psychological level, as the reasons that analysts quoted for keeping index below 15,400 points in near past were yet to be addressed.

Trust deficit between the two provincial political parties was continuously rising higher with the passage of time, issue of reinstating deposed judges and flaws found in the local economy can impact the market.

Overseas investors disinvested net $8.6 million from the local equity markets including Karachi bourse, according to NCCPL website.

Hasnain Asghar Ali at Aziz Fidahusein said that rising international oil prices and foreign inflow recorded on Monday allowed the bulls to openly display their muscle while growth reported in cement exports and chances of increase in strategic investment in the local banks also extended their support to bull-run on board.

However, the reinstatement issue of deposed judges and certain other economic, foreign policy and budgetary issues restricted the surge to 101 points, he added.

Ahsan Malik at Shahzad Chamdia Securities observed that likely increase in local POL products’ prices would also inflate the bottom line profits of oil companies and that is why the relevant stocks attracted fresh funds. While fertilizer sector also depicted growth in the concerning scrips following DAP price crossed Rs4000 per kg in the local commodity market, he added.

Market moved by 121 points either way in a range of 15,559 points intra-day high and 15,438 points intra-day low. Turnover in the ready market further declined to 222 million shares as compared to 226 million shares changed hands a day earlier.

The KSE 30-Index posted a fresh rise of 155 points or 0.82 per cent and finished at 18,971.75 points new high level.

Overall market capitalisation reached new highest level of Rs4.752 trillion by attracting fresh funds worth of Rs29 billion.

Among the 347 active counters on board, 179 advanced, 127 declined and the value of 41 scrips remained unchanged.

Highest volumes were witnessed in Pak Oilfields at 20.756 million closing at Rs402.50 with a gain of Rs13, followed by Pace (Pak) at 17.409 million closing at Rs39.30 with a gain of Rs1.85, Fauji Fertilizer Bin Qasim at 12.793 million closing at Rs41.55 with a gain of 65 paisa, Bank of Punjab at 12.349 million closing at Rs61.75 with a gain of Rs1.20 and Nishat Mills at 9.735 million closing at Rs126.80 with a gain of Rs1.80.

KSE hits all-time high of 15,538 points

 

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Dar discusses Pak economy with Moody’s, S&P ​

NEW YORK: Federal Finance Minister Muhammad Ishaq Dar wound up his hectic five-day visit to the United States, after in-depth discussions with senior officials of rating agencies M/s Standard & Poor and Moody’s, on Monday.

A Pakistan Mission press release said that they exchanged views on the current state of Pakistan’s economy and future challenges.

Afterwards, Dar flew back to Pakistan. He arrived on Sunday night in New York from Washington where he led the Pakistan delegation to the spring World Bank -International Monetary Fund (IMF) meetings. He also conferred with a numbers of his counterparts attending those meetings and heads of international financial institutions.

The finance minister apprised the rating agencies that the current financial imbalances were largely caused by external shocks, particularly the unprecedented increase in oil and commodity prices as well as steps taken by the previous government for political expediencies.

For over a year, the previous regime did not pass on to the consumers the rising international oil prices. The minister briefed rating agencies’ officials on the measures taken by the government to address the situation for the remaining months of the current fiscal year.

In doing so, he also reaffirmed the government’s commitment to restore macro-economic stability in a reasonable timeframe.

Outlining his government’s priorities, Dar stated that it will focus on agriculture and large scale manufacturing as priority areas to achieve sustained growth.

Coupled with that will be a variety of measures to reduce government borrowing from the State Bank with a view to slowing down the growth of money supply and controlling inflation.

The rating agencies appreciated the candid analysis of Pakistan’s economic situation and expressed their confidence in the minister’s ability and the policies and measures contemplated by the present government to address the situation, the press release said.

The minister was accompanied by State Bank Governor Dr Shamshad Akhtar, Finance Secretary Dr Waqar Masood, Special Secretary & Adviser on Finance Dr Ashfaq Khan and Wajid Rana, Economic Minister at the Pakistan Embassy in Washington.

Managing Directors of Sovereign Ratings John Chamber and Ms Marie Cavanaugh led the team representing Standard & Poor while Senior Vice President Guindo Cipriani and Vice President Christopher Kimbel led the team representing Moody’s.

Dar discusses Pak economy with Moody’s, S&P

 

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Tax-to-GDP ratio should rise: FBR ​

Wednesday, April 16, 2008

KARACHI: Chairman of Federal Board of Revenue (FBR), Muhammad Abdullah Yousuf has pointed out that the tax to GDP ratio was only 11 per cent, whereas the country should have at least 16 per cent ratio, which could help collect taxes of Rs50 billion per year.

During a meeting with Karachi Chamber of Commerce and Industry (KCCI) members on Monday night, he said that this 11 per cent ratio stood against 16 to 18 per cent in the region, whereas, in most of the countries worldwide, this ratio ranged between 25 and 30 per cent.

Listing the reforms made in FBR, he agreed that much was needed to be done to make sales tax collection system efficient and facilitating. He further informed the business community that from 1st July this year, they could file their returns through an e-system.

He added that they could also send their sales summary electronically, and the information forwarded by them would be processed the same way. The verification of their bank accounts would be done electronically also, he added.

Yousuf assured them that under the new programme, they could get their refunds within a period of one month from the filing of their returns. He said that over the last five years, the rate of sales tax and other taxes has drastically cut down, and this could reduce further if the tax base increases.

On the customs side, he said that various programmes like Customs Administrative Reforms (CARE) had been launched to make the system paperless, while more reforms were in the pipeline.

Tax-to-GDP ratio should rise: FBR

 

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Trade deficit can settle around $16bn: Khaqan Abbasi​

KARACHI: Country’s trade deficit can settle around $16 billion during the current financial year, says Federal Commerce Minister Shahid Khaqan Abbasi. Talking to newsmen during a visit of Trade Development Authority of Pakistan (TDAP) here on Tuesday, he cited soaring prices of oil in international market, import of food items and rising prices of palm oil as major contributors in burgeoning trade deficit. About any short-term plan to contain this deficit, he said that it could be reduced through increase in exports, however at the moment it is hard to have quantum jump in exports whereas the domestic requirements also make it difficult to cut the import bill. When asked about boosting trade ties with India, Abbasi held the political issues especially Kashmir dispute as major obstacles to move forward. “It is difficult to grant Most Favoured Nation status to neighbouring country without resolving the main dispute of Kashmir”, he stated.

The News - International - Wednesday, April 16, 2008

 

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‘Pakistan unable to improve cotton quality’​

KARACHI: Pakistan is still unable to improve the quality and enhance volume of Bacillus Thuringiensis (BT) cotton variety and to use certified seeds, ginners and traders said on Monday.

They were of the view that country would not be able to achieve next cotton crop target in 2008-09, which is set by the federal government at around 14.11 million bales.

Director on Board of Karachi Cotton Association (KCA), exporter, importer and ginner, Ghulam Rabbani, said unless production of quality seeds, supply of quality inputs and water availability is not assured, the production would reach only around 12.80 million bales.

He said cotton sowing season has started in April but the growers and farmers are unable to get certified seeds according to their demand.

He said, according to a report, a broad range of countries was switching from cotton to other fibers attributed to price considerations. Cotton is one of the commodity markets that traders still see as relatively cheap, and the market remains in a short-term up trend despite negative news from the USDA this week.

He said we were still lacking to fight against mealy bug and Cotton Leaf Curl Virus (CLCV) attack.

He said there was need of cotton experts and patent rights to the multinational companies in the field in order to help and guide growers to produce quality seeds in the country.

He said seed institutes, one each in Sakrand in Sindh and Khanewal in Punjab, were unable to produce and cater the supply of quality seed to the growers. He said around 50 percent of the total cultivation in the country is BT type cotton. Nearly 90 percent of this type is cultivated in Sindh and about 30 percent is cultivated in Punjab.

Daily Times - Leading News Resource of Pakistan

 

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Industrial development: NWFP to seek special incentives from centre, says minister ​

PESHAWAR (April 16 2008): NWFP Minister for Industries Syed Ahmad Hussain Shah has said that the provincial government would approach federal government for special incentives and other facilities for development of industrial sector of the province.

Addressing a meeting of industrialists and traders here at Sarhad Chamber of Commerce & Industry (SCCI), he also intended to invite proposals from all the industries and trade bodies of the province.

The provincial secretary Industries Shah Wali Khan, official of the department, President SCCI Haji Muhammad Asif and other office bearers of the chamber also attended the meeting. Describing the current load shedding as genuine cause of concern for the industrialists, he stressed the need for establishing small hydropower stations in northern NWFP. He said that it would help generate 16000 MW additional electricity than of our demands.

Assuring the industrialists of every possible security measures for Hayatabad Industrial Estate (HIE), he emphasised on the need for mutual co-operation between the government and the industrialists and investors for facing the challenge of law and order.

Terming sustainable industrialisation and economic activities the only solution to the growing lawlessness and unemployment, Ahmad Hussain Shah urged the industrialists not to hesitate from investment despite the prevailing unfavourable conditions and strengthen the government by playing their pivotal role.

The minister assured SCCI members that the government would take measures for setting up of an additional sector in HIE and an Export Display Centre in Peshawar.

He also announced to construct boundary wall around HIE, establishment of new industrial estates in the tribal areas and the earthquake affected districts, promotion of quality technical education and issuance of arms licences to the industrialists. Earlier, President SCCI highlighted the problems being faced by the industrial and trading community and appreciated the provincial ministers commitment to boost the industrial sector.

Business Recorder [Pakistan's First Financial Daily]

 

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NSN to help eradicate unemployment ​

ISLAMABAD (April 16 2008): Nokia Siemens Network (NSN) is working to groom people to help eradicate unemployment and create an energy-efficient and environment-friendly system. "Our products are designed with an environmental lifecycle in mind and everything we produce must provide greater environmental benefits and minimise any impact otherwise", said Jan Cron, NSN head of Middle East and Africa region here on Tuesday.

He was addressing a press conference on the occasion of first anniversary of the merger of Nokia and Siemens. Veqarul Islam, Country Director, Pakistan and Afghanistan was also present on the occasion.

"We have recorded some large deals with Zain in Saudi Arabia accounting for almost $1 million of mobile network implementation and development. In Pakistan, we have proved to be the fastest network enabler to roll out Radio and Core R4 in the telecommunications history of Pakistan, he added. He said that NSN worked to develop its environmental campaign to reduce energy consumption and maximise energy efficiency of its network infrastructure equipment.

Nokia Siemens Network is also strengthening its work in new markets with innovative solutions such as the village connection, which lets service providers leverage the potential of rural markets by offering mobile connectivity to villages at relatively low levels of investment, he said.

Business Recorder [Pakistan's First Financial Daily]

 

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New free trade accord with China soon: Musharraf​

URUMQI, April 15: President Pervez Musharraf said on Tuesday that Pakistan and China were close to signing another Free Trade Agreement (FTA) on trade and services that would further boost their economic and commercial ties.

Addressing the China Xinjiang-Pakistan Economic Forum in Urumqi, the capital of Xinjiang autonomous region, he urged closer cooperation in trade and commerce and investment.

The president informed the business leaders that there was immense scope for investment in Pakistan in the energy sector, particularly in coal-powered and solar and hydro-electric plants.

He said Pakistan and China were also discussing proposals to set up more nuclear power plants to help meet the requirements of fast expanding economy.

He said Pakistan had proposed an integrated border management regime and transit trade agreement.

The president said that in view of close ties between the two countries, special investment zones would be created in Pakistan for Chinese entrepreneurs.

Inviting Bank of China to enter Pakistani banking scene to help business communities of the two countries, he said several foreign banks were operating in the country.

He said Xinjiang could vastly benefit from its proximity to Pakistan.

He said Pakistan and China had already embarked on a plan to upgrade the Karakoram Highway for allowing all types of heavy traffic. This would be besides a rail link connecting Pakistan Railways with China Rail.

“We can even have fibre optic link and oil and gas pipeline along the same route that will bring the two countries closer,” the president said.

Xinjiang Governor Nur Bakari and Vice-Governor Masood Qureshi and members of the Pakistani delegation attended the meeting.

Meanwhile, according to a joint statement issued simultaneously from Beijing and Islamabad at the end of President Musharraf’s six-day state visit, China has expressed its readiness to assist Pakistan for the development of energy, mineral and mining sectors, extend cooperation in financial sector and upgrade communication and transportation links.

“Both sides agreed to further strengthen defence cooperation and enhance collaboration between their respective defence industries,” the statement said.

“China expressed its full support for Pakistan’s efforts to preserve its sovereignty, independence, territorial integrity and expressed appreciation for Pakistan’s important role in promoting peace, stability and security and its contribution to counter terrorism.”

Pakistan reiterated its full support to the ‘One China’ policy and the return of Taiwan to the motherland. It also condemned and rejected the “three evil forces i.e. secessionism, separatism and terrorism”.

During the visit, President Musharraf held official talks with President Hu Jintao in Sanya, met NPC Standing Committee Chairman Wu Bangguo, Premier Wen Jiabao and CPPCC Chairman Jia Qinglin in Beijing as well as the leadership of Xinjiang Uighur Autonomous Region in Urumqi.

The president was accompanied by Foreign Minister Shah Mehmood Qureshi, Defence Minister Ahmed Mukhtar, Higher Education Commission Chairman Dr Atta ur Rehman, Chairman Trade Development Authority Tariq Ikram and Deputy Chairman Planning Commission Dr Akram Sheikh.

The two countries signed 10 memoranda of understanding on water, cooperation in engineering and technological sciences, finance, research and exchange of TV news.

They also agreed to set up Pakistan Culture and Communication Center at Tsinghua University, and promote economic and trade cooperation between the Foreign Trade and Economic Cooperation Bureau of Xinjiang Uighur Autonomous Region and Ministry of Commerce of Pakistan.

The countries also decided to encourage international investment and establish relations of friendship and good neighbourly cooperation between Xinjiang and the NWFP.—APP

New free trade accord with China soon: Musharraf -DAWN - Top Stories; April 16, 2008

 

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Pakistan may double wheat import this year​

SINGAPORE, April 15: Pakistan could double its wheat imports this year and may slap a tax on rice exports to rein in inflation, a senior trader said on Tuesday, adding to global anxiety over record food prices and thinning supplies.

As major rice exporters Vietnam and India clamp down on shipments, buyers have rushed to Pakistan, the world’s fifth-largest seller, said Najib Balagamwalla, chief executive of Sea Trade, a leading Pakistan-based commodities trader.

But with inflation at a 13-year high, Islamabad could join the growing list of governments seeking to tame rising prices by discouraging overseas sales. At the same time, with nearly half the country at risk of running short of food, it may buy as much as 3.5 million tonnes of wheat, he said.

“The government will probably put a duty on rice exports,” Balagamwalla told Reuters in an interview.

“Local rice prices have doubled in a few months and will rise another 50 per cent if there is no immediate government intervention.”

Pakistan is expected to produce 5.5 million tonnes of rice in the year to June 2008, and after domestic consumption should have an exportable surplus of about 3.3 million tonnes, according to officials of the Rice Exporters Association of Pakistan.

The country produced 5.4 million tonnes of rice and exported about 3.1 million tonnes in the previous year, equal to about one tenth of world rice trade.

“Importers are scrambling to buy Pakistani rice and exporters are of course getting very good prices. But the concern is building up in the domestic market,” Balagamwalla added.

Exporters would resist any move to impose a duty.

Rice, a high-value cash crop, accounts for about eight per cent of Pakistani exports and 1.2 per cent of gross domestic product.

High food prices lifted Pakistan’s consumer price inflation to 14.12 per cent year-on-year in March, the highest in 13 years.

Pakistan produced 23.3 million tonnes of wheat in the 2006/07 crop year and had to import 1.7 million tonnes after a shortage in September that resulted in soaring domestic prices.

But Balagamwalla said output could fall to 22 million tonnes this year, about 2 million tonnes lower than earlier estimates, due to erratic weather and a delay in announcing the procurement price the government pays farmers. A lower than hoped-for price also led to a fall in wheat cultivation, he said.

“We are at the start of the wheat season but we are already in a crisis,” Balagamwalla said.

“I think we should be importing at least 3.5 million tonnes of wheat this season.” He said that provincial governments were struggling to procure wheat from farmers who were hoping to get even higher prices in the open market.

The government has announced a procurement price of 510 rupees ($8.17) per 40 kg, far less than global prices. Food ministry officials say it will be difficult for the government to meet its target of buying 5 million tonnes at that price.—Reuters

Pakistan may double wheat import this year -DAWN - Top Stories; April 16, 2008

 

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Change in agriculture can meet food needs​

RAWALPINDI, April 15: Agricultural production will be increasingly constrained by the declining availability and degradation of water in the countries of Asia and the Pacific with implications for food production, says a report which puts development at heart of Asia-Pacific security.

At a time of record high prices for food commodities, the report, ‘International Assessment of Agricultural Science and Technology for Development (IAASTD), released on Tuesday, says by 2020 per capita water availability is estimated to decline to between 15 per cent and 35 per cent of that available in 1950.

The way the world grows its food will have to change radically to better serve the poor and hungry if the world is to cope with a growing population and climate change while avoiding social breakdown and environmental collapse — a message from the report prepared by over 400 scientists, released by the United Nations Educational, Scientific and Cultural Organisation (Unesco).

The report says rapid urbanisation and industrialisation in the region leads to competition for productive land resources. In addition, there are problems of increasing land degradation, declining soil fertility, increasing toxicity, and salinity/alkalinity. Projects to reclaim degraded lands for arable purposes will only make a small contribution to future growth in food production, it warns.

Along with increases in productivity there is also a need for systems of compensation, payments and other rewards that might increase the supply of environmental public goods linked to particular forms of land use. These can be coupled with stringent environmental regulations that will ensure the most productive and effective use of limited resources, the report emphasises.

The report predicts that by the year 2020 nitrogen pollution from food production (fertiliser use and domestic animal waste) and consumption systems will increase by 1.3-1.6 times in East Asian countries from 2002 levels.

The report warns that agricultural production in the region will be threatened by climate change and variability. Through emissions from rice cultivation and livestock, and deforestation, agriculture in the region contributes substantially to GHG emissions. To mitigate the effects of climate change, agricultural knowledge, science and technology (AKST) development to reduce emissions from agriculture, is needed. In order to adapt to climate change, AKST development is required to meet the challenges of cultivation that is resistant to drought, long inundation, salt, high temperatures, and so on. As water availability will be highly variable over time and space, AKST development also is necessary for conserving water and increasing irrigation efficiency.

“Unless there is a determination to promote development, much of eastern Asia faces the prospect of serious social problems and an increasingly degraded environment.” The assessment report says current patterns of agricultural development will increase pollution and environmental deterioration and pose major challenges for growing food and reducing poverty. Without political commitment by key decision-makers to ensure development, the downward spiral towards socio-economic turmoil and ecological degradation may be rapid and perhaps even irreversible, it says.

The report argues that some of the gains of the region's high growth can and should be used to build safety nets for the rural poor, the majority of whom are women: it advocates policies designed to secure gender equity and social inclusion.

The report's detailed recommendations on using agricultural knowledge to help the region include ways of arresting the loss of forests and grasslands, tackling land and water degradation, conserving biodiversity, and both mitigating and adapting to climate change. And with conflicts increasing over natural resources and anxieties evident in disputes about fishing rights and water sharing, it sees a need to develop regional co-operation and conflict resolution systems.

It calls for “multi-functional” agriculture, serving our multiple demands for sustainability, equity, development and food. There are, it concludes, “unprecedented challenges ahead”. It believes the way to meet them lies in re-directing the wealth of agricultural knowledge and expertise the world has built up: it should be targeted towards agro-ecological strategies that combine productivity with protecting natural resources like soils, water, forests, and biodiversity.

Change in agriculture can meet food needs -DAWN - Business; April 16, 2008

 

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Phone calls to Pakistan made costlier​

KARACHI, April 15: The Pakistan Telecommunication Authority (PTA) has increased Approved Settlement Rate (ASR) by 100 per cent, which would make calling to Pakistan more expensive. The move is believed to address rising demand of the local operators.

However, sources in telecom sector believe the move may also encourage voice trafficking through illegal means to the country, which currently causes more than $50 million losses to the exchequer every year.

“The authority, after due deliberation and hearing the arguments of different stakeholders, has decided to revise the ASR for long distance and international (LDI) operators at $0.10 from $0.5 per minute with effect from May 1, 2008,” said a source quoting a PTA notification.

“The PTA, in fact, has addressed the demand of local operators, who have been pleading for increase in such rates, as it would not affect the local consumers of the facility,” said the source. “But it would naturally increase the cost of calling to Pakistan from outside”.

The experts raised serious concerns over the telecom watchdog’s decision, who termed it contradictory to the measures it had earlier taken to curb the illegal voice trafficking.

The PTA in 2006 cut ASR by 38.61 per cent in an effort to reduce financial incentives in ‘grey telephony’.

“If the ASR is increased it will cause illegal international call rerouting by LDI operators and some illegal operators may also increase rates seeing the opportunity,” said Ansar-ul-Haq, a telecom consultant.

“The increase in ASR will also increase the tele-density gap and the private operators would not launch telecom services in comparatively lower profit-earning rural areas, he added.”

Grey telephony is a term referred to the illegal telecom traffic in which calls from foreign countries are brought in the country as local calls, while using illegal means. This is an offence under Telecom Reorganisation Act, 1996.

The sources privy to the PTA, however, argued the increase in ASR rate was unlikely to damage the revenue, as the authority had already deployed technical solutions to check grey traffic brought into the country through illegal means.

“The main objectives of the technical solution include automated detection of grey traffic for its consequent elimination, and revenue assurance for LDI operators,” said the source.

“After successful deployment, the solution would be able to filter IP traffic of the country for detection of illegal VoIP on data circuits for consequent legal action against the culprits.”

In such situation, he said, the PTA was confident that a large volume of illegal voice traffic always remained under check of the authority and could not damage the legal telecom’s business.

Phone calls to Pakistan made costlier -DAWN - Business; April 16, 2008

 

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Remittances touch record level of $602.21 million

KARACHI: Overseas Pakistanis sent home a record $602.21 million in March this year as against $520.24 million in the same month of last year, showing a jump of $81.97 million or 15.76%.

Previously, the highest amount sent in a single month by Pakistani workers was $580.24 million in October 2007.

The inflow of remittances into Pakistan from almost all countries of the world increased last month as compared to March 2007. According to the break up, remittances from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $151.95 million, $120.11 million, $111.74 million, $85.44 million, $41.98 million and $15.01 million, respectively, as compared to $142.72 million, $92.69 million, $82.29 million, $70.43 million, $37.75 million and $12.88 million received in the corresponding period of last year.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during March 2008 amounted to $75.84 million as compared to $81.13 million during March 2007.

Remittances sent home by overseas Pakistanis continued to rise in the first nine months of the current financial year.

The country received $4.728 billion in July 2007-March 2008, showing an increase of $791.60 million or 20.11 percent over the same period of the last fiscal year. The monthly average of remittances for this period was $525.37 million as compared to $437.42 million during the same period of last fiscal year.

The inflow of remittances in this period from USA, Saudi Arabia, UAE, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1.312 billion, $881.95 million, $793.62 million, $704.27 million, $334.85 million and $131.13 million, respectively as compared to $1.034 billion, $733.48 million, $595.98 million, $538.29 million, $319.25 million and $110.38 million, respectively, in the July-March 2006-07 period.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first nine months of the current fiscal year amounted to $568.06 million as against $602.80 million in the same period last year.

The amount of $4.728 billion includes $2.15 million received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs). staff report

Daily Times - Leading News Resource of Pakistan

 

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IMF asks Pakistan to ensure transparency in fiscal matters ​

Thursday, April 17, 2008

ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to provide an overview of the potential risk to its fiscal position through budget documents, in a bid to bring more transparency in matters related to data.

A report on the observance of standards and codesófiscal transparency module, an update released by the IMF on Wednesday, stated that elements of fiscal risk are covered in the present budget documents. However, no summary overview of potential risks to the government’s fiscal position was provided.

Risks arising from explicit and implicit contingent liabilities, such as risk statement, should cover macroeconomic risks arising from changes to key macroeconomic parameters including price, interest or exchange rate. It could also provide an analysis of control risks, based on an examination of original budget estimates versus actual budget outcomes.

The staff encourages the Auditor General of Pakistan (AGP) to amend the legal framework for audits, to permit all areas of risk to public finances to be audited under the AGP’s direction. As noted, current audit practices are under review, with the expectation that regulatory changes will be introduced to extend the AGP’s oversight to all areas of government operations.

Some further efforts are needed to promote reforms of procurement practice at all levels of the government and implement the regulations, now in place at the federal level. The AGP already identified procurement as an area of high risk.

The initiative to establish effective internal control and financial management systems in line ministries will take time to be implemented, but is central to long-term reforms.

A road-map for organisational change associated with the major reforms should be prepared and its implementation monitored at a high level. A number of significant changes in organisational roles and responsibilities for fiscal management, both among central agencies and within line ministries, are clearly required.

These changes include a redefinition of the roles of the Planning and Development Division (PDD) and the Ministry of Finance (MOF), discussed above. It also includes development of closer coordination between the Budget and Expenditure Wings of the MOF, and changes in responsibilities between the central agencies and line ministries, as the Medium Term Budgetary Framework (MTBF) and effective internal controls are put in place.

The IMF also proposed that a programme classification, based on sub-detail functions, covering all ministries should be developed as part of the full MTBF rollout.

IMF asks Pakistan to ensure transparency in fiscal matters