Pakistan Economy - News & Updates - Archive

[Neo]

Rising budget deficit: government facing pressure to shelve uplift projects​

ISLAMABAD (August 09 2008): The present government is facing a mounting pressure regarding reducing the size of the PSDP by shelving a number of development projects as the budget deficit continues to widen.

"According to the international financial institutions, about 7 to 8 percent of GDP is required to be spent on infrastructure annually in developing states while currently Pakistan is spending 3 to 4 percent of the GDP," said Ghulam Murtaza Satti, leader of Infrastructure Project Development Facility (IPDF) on Friday.

He said that PPP co-chairman Asif Ali Zardari, who is fully cognisant of this situation and wants accelerated pace of development of infrastructural projects, has strictly instructed IPDF, the Planning Commission and ministries to strengthen their co-ordination through adopting a uniform strategy on the subject.

He said that Zardari directed all concerned departments to involve more and more private sector participation in development projects as being successfully done by the IPDF. "Zardari has also instructed the IPDF to ensure speedy completion of the infrastructural projects being executed under the Public Private Partnership so that further projects are initiated," said Satti.

He said that some corrupt elements in the relevant government departments are making efforts to escape IPDF because on this platform it is impossible for them to make corruption. The present government is fully aware of private partnership in development and the IPDF would play a leading role in this regard.

About the significance of Public Private Partnership, Ghulam Murtaza Satti said that its framework is a pre-requisite for rapid economic growth as it provides a strong base for taking the country on the path of rapid progress. He also revealed that India has planned $391 billion investment in infrastructural projects in the next five years out of which $209 billion is expected to be invested by the private sector.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Rs 7.5 billion allocated for completion of Southern Punjab uplift projects​

LAHORE (August 09 2008): An amount of Rs 7.5 billion has been allocated in the current fiscal year budget for the completion of developmental schemes in southern Punjab. A big project, with the cooperation of Asian Development Bank (ADB), is under way for the completion of water supply and drainage schemes, waste water treatment plant and link roads in these areas.

Provincial Minister for Population Welfare Neelam Jabbar Chaudhry said here on Friday that the provincial government was giving priority for the socio-economic development of the less-developed areas and funds were being provided for this purpose.

However, she said that rapid population growth was an unbearable burden on the economy, therefore, by striking a balance between the population and resources, "we can ensure solution to many socio-fiscal problems."

She said that population growth issues could be addressed through collective efforts by all segment of the society, including social workers, teachers, religious leaders and scholars.

She said that under the Prime Minister's initiatives in the five years programme, the number of population welfare centres, presently established for 10,000 population, it would be increased by setting up these centres for population of 7,000 and later 3,000 people.

The reproductive centres, presently established at the district headquarters level, would be set up down at tehsil level, and added the number of male mobilisers, presently working at population of 20,000 persons, would be increased by setting up these centres at population of 10,000 people and social mobilisers would be appointed in all tehsils of the country, under the programme.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan to import 300,000 tonnes of urea fertiliser from Saudi Arabia​

10 August 2008

ISLAMABAD - Pakistan has decided to import 300,000 tonnes of urea from Saudi Arabia and provide maximum subsidy on fertiliser for maintaining prices at the current level aimed at avoiding the impact of fertiliser shortage on agricultural output.

Addressing a news conference, Adviser to the Prime Minister on Industries and Production Mian Manzoor Ahmad Watoo said on Saturday that about 150,000 tonnes of fertiliser from Saudi Arabia would arrive by end of this month. He said it was unfortunate that hoarders and black-marketers were hoarding fertiliser at a time the cotton and rice crops were maturing and international prices of fertiliser were going up.

Pakistan's total urea production is about 4.8 million tonnes against a demand of 5.4 million tonnes, leaving a shortfall of 600,000 tonnes. This provides an opportunity to the middlemen to earn higher profits through black marketing and hoarding because of much higher international prices.

He said due to supply and demand gap and higher price the farmers would use less fertiliser in rice and cottonne crops that would affect the country's agricultural production negatively. He said an inter-ministerial body in consultation with fertiliser manufacturers have decided to provide 50 per cent of total production to the dealers and sell 50 per cent at control rate of Rs625 per 50 kg bag at the warehouses of manufacturing plants.

He said the provinces have also been asked to take immediate steps to ensure supply of fertiliser to the farmers at control rates and take action against hoarders and black-marketers. The imported fertiliser would be flooded in the market to ensure sufficient availability of the product at control rates, he said and added the government was also considering distributing fertilisers through the Utility Stores Corporation and other similar facilities.

He deplored that the previous government under the decentralised system had abolished the magistracy system in the country that used to be an effective system of checking hoarding, black-marketing and illegal profiteering of various commodities but the new government would use district authorities and Tehsildars to take action against fertiliser hoarders.

Watoo said there were sufficient stocks of DAP and other phosphatic fertilisers for coming Rabi crops of Wheat and potato but its prices in the market have increased substantially because of monopoly of a few countries over phosphorus powder. He said the prices of DAP have increased from Rs900-1,000 to Rs2,800-3,100 in the market and the government was providing a subsidy of Rs470 per 50 kg bag. He said the landed cost of DAP could go beyond Rs5,000 per bag but the government has decided to provide maximum subsidy to ensure that DAP prices remain below Rs3,100 per bag.

Pakistan's total production of phosphatic fertilisers is about 700,000 tonnes against annual requirement of 1,300,000 tonnes, leaving a gap of 600,000 tonnes. The prices of phosphorus powder have been increased by countries like Morocco, Egypt and some other producers who were monopolising the phosphatic fertilisers.

Khaleej Times Online - Pakistan to import 300,000 tonnes of urea fertiliser from Saudi Arabia

 

[Neo]

Trade deficit hits $1.64bn ​

Sunday, August 10, 2008

ISLAMABAD: Pakistan’s economy started the new fiscal year with a hefty $1.64 billion trade deficit during July 2008, which is 49.19 per cent (or $542.2 million) more than the corresponding month of last fiscal ($1.10 billion), the Federal Bureau of Statistics (FBS) reported on Saturday.

During the same month of last fiscal 2007-08, imports stood at $2.57 billion and exports at $1.47 billion. This depicts a 37.92 per cent growth in imports and 29.48 per cent in exports. In July 2008, the country’s trade gap widened to $1.64 billion, down by 16.59 per cent from trade deficit of $1.97 billion recorded in June 2008. During the month under review, imports declined by 11.81 per cent to $3.55 billion and exports fell by 7.22 per cent to $1.91 billion over the previous month (June 2008).

The government’s trade policy for the current fiscal year (2008-09) announced last month has projected exports target of $22.1 billion. The policy although has not formally announced any import target however the commerce ministry’s officials revealed that at $37 billion, indicating $15 billion trade deficit by end June 2009.

It is also interesting to note that the government has decided not only to increase the country’s exports but also to bring negative growth in imports in order to bridge the trade gap, officials told the News.

The State Bank of Pakistan’s running tight monetary policy and the federal government’s preventing non-essential imports are instrumentals in achieving its desirable results of reigning in the burgeoning trade deficit.

Trade deficit hits $1.64bn

 

[Neo]

Govt brings down external debt by $129m ​

Sunday, August 10, 2008

ISLAMABAD: Although Pakistan’s external debt stock has increased by $5.46 billion to $44.47 billion during July-June 2007-08 the government in its first three months (April-June) retired some principal amount and interest resulting in $129 million decline in debt stock for the first time in last 10 years.

The rupee value of external debt and liabilities went up by Rs607 billion in one year, which is the highest increase in a single year mainly because of massive depreciation of rupee against the US dollar.

The government also benefited by appreciation of US dollar versus major currencies. The valuation impact amounted to $1.042 billion, which means the external debt declined by this amount in dollar terms because of appreciation of the US dollar versus major currencies.

The government is finding it hard to get disbursement of agreed loans from the World Bank and Asian Development Bank because they require a nod from the IMF regarding macroeconomic stability.

According to State Bank of Pakistan during the last six years external debt increased significantly. As on June 30, 2003, it stood at $32.46 billion, June 2004 ($32.93 billion), June 2005 ($34.04 billion), June 2006 ($35.97 billion) June 2007 ($39 billion) and now at the end of June 2008, it jumped to $44.47 billion.

Adding foreign exchange liabilities with external debt, the situation becomes more grim as during FY2007-08, Pakistan’s external liabilities, external debt plus foreign exchange liabilities, jacked up to $46.28 billion at the end of June 2008 from $40.48 billion by end June 2007 up by $5.8 billion in a year.

The external debt and liabilities as percentage of GDP have risen to 29.2 per cent from 28.1 per cent last year which means the debt burden went up by 1.1 percentage points. Similarly, the external debt and liabilities as percentage of foreign exchange earnings escalated to 131 per cent from 126 per cent in last year. These two indicators were frequently referred to as important indicators of debt burden in the past five years by the Debt Office of the Ministry of Finance.

While in the same time, official liquid reserves with the central bank substantially declined to $8.577 billion by end June 2008 down $4.77 billion over last fiscal.

Of the total liabilities, the external debt has surged by $5.46 billion to $44.47 billion at the end of June 2007-08, against $40.62 billion recorded at the end of June 2007. Foreign exchange liabilities also increased to $1.82 billion as compared to $1.47 billion recorded at the end June 2007.

On the other hand, independent economists say that floating of euro and dollar bonds were a source of building up country’s reserves. They say that floating of bonds at one hand increasing government liabilities and on the other hand the country’s reserves.

According to the bank’s data during the last five years, the country’s public and publicly guaranteed debt has been on the rise.

On June 30, 2003, it was $ 29.23 billion, June 2004 ($29.87 billion), June 2005 ($31.08 billion), June 2006 ($32.89 billion), June 2007 ($35.35 billion) and at the end of June 2008 it increased to $40.24 billion.

In public and publicly guaranteed debt, the medium and long-term debt (more than one year) during the period under review augmented by $4.25 billion to $ 39.33 billion as it was $35.08 billion at the end of June 2007.

According to the break-up of the medium and long-term debt, the multilateral debt by end-June 2008 grew by $2.92 billion to $21.45 billion and bilateral debt up by $198 million to $1.13 billion compared to June 2007 when these stood at $18.53 billion and $931 million respectively.

While, during the period under review the volume of military debt declined by $42 million to $41 million while Paris club debt up by $1.23 billion to $13.93 billion over the previous year.

The State Bank’s data also depict a decline of about $70 million in the International Monetary Fund (IMF) debt. At the end of June 2008, it declined to $1.34 billion as compared to $1.41 billion recorded at the end of June 2007.

The economy has to absorb double hit in the shape of Pakistani rupees depreciation against the US dollar and the greenback (US $) losing value against hard currencies like Japanese yen (JPY), Euro, SDR and others which multiplied the burden.

Economic pundits believe that with each rupee appreciation in US dollar Pakistani external debt rise by Rs45 billion. In 2007-08 greenback appreciated by more than 12 rupees. Dollar depreciation against other major world currencies was also worsening the country’s debt position and just piling up the stock of external debt in dollar terms.

It is also interesting to note that since other currencies of the world appreciating against dollar due to its falling value in the world market, only Pakistani rupee is being depreciated and touching record low against the greenback.

The government was experiencing huge current account deficit (CAD) and each month it inched up by more than a billion dollar and there was a strong anticipation of rupee depreciation against major currencies, yet the government was unaware about its implications on debt stock or made no efforts to manage it. During July-June 2007-08, CAD without official transfer stood at all times high $14.44 billion (about 8 per cent of GDP).

It is also interesting to note that the government was also noticing the huge twin deficits (current and budget deficit) of the US economy and it was projected that the dollar would shed its value against hard currencies like Japanese yen (JPY), Euro, SDR and others.

While on the other hand, economic managers of the government had not assessed its impact on the local economy and especially on the external payments and debt or had no experience to manage the hit on the economy.

Govt brings down external debt by $129m

 

[Neo]

‘FDI must also generate employment’ ​

Sunday, August 10, 2008

KARACHI: Communications is the largest recipient of foreign direct investment particularly in Sindh where it attracts 64 per cent of FDI yet provides only six per cent of employment whereas agriculture provides 43 per cent of jobs but receives nominal FDI, a research said.

The Sindh-focused research report also revealed that it is the kind of FDI and not the amount of FDI, which could have any difference on employment statistics.

The research was presented by Zia Abbas, Zia ul Qamar and Kamran Abbas in a one-day conference on ‘Sindh Progress and Prospects, Competitiveness and Productivity’ organized by the Institute of Business Management (IoBM) in collaboration with the University of Sindh on Saturday at a local hotel.

“It is the general perception that more FDI means more employment which has been proved wrong,” said Zia Abbas, who is doing M Phil from Applied Economics Research Centre, University of Karachi.

He said Pakistan should examine what kind of FDI is coming in the country and in which sector because its significance is more in some sectors where we need it crucially like agricultural.

Pakistan needs FDI in commodity producing that is manufacturing instead in stocks so that the flight of capital could not take place overnight.

Dr Muhammad Irshad Khan, said now there are number of foreign standards like WRAP (Worldwide Responsible Apparel Production) and SA-8000 that are not being met by our exporters, which hampers our exports.

He said we are exporting our seafood on very low price because we do not meet European standards. New standards would create more problems for our exporters like child labour, environment, forced labour etc, which our exporters would need to implement.

Abdul Rahim Janoo, MD of Haji Razzak Janoo Pvt Ltd and ex-chairman of Rice Exporters Association of Pakistan (REAP) said we are not doing enough research for better quality rice. Pakistan has great potential of producing good quality rice and with some training and awareness our rice producers can expand its cultivation and exports.

Speakers emphasized that private sector should arrange training programs for rice producers in foreign countries to inculcate latest techniques in rice cultivation.

The conference held six parallel sessions on information technology, communication and media, development of Sindhi as a business language, foreign investment and banking, education and human resource and demographics of health. The recommendations of the conference were Sindh should have a its own bank like Bank of Punjab and Bank of Khyber and State Bank of Pakistan should take practical steps for establishing more micro finance banks in the country.

‘FDI must also generate employment’

 

[Neo]

Debt servicing eats up half of reserves​

KARACHI, Aug 9: The amount of debt servicing has increased to become the strongest contender for the dollar, the most precious item for Pakistan as rising oil bills already slashed the reserves to just half within ten months.

The State Bank reported on Saturday that the country paid $3.029 billion as the debt servicing for 2007-08, which is just half of the central bank’s foreign exchange reserves.

The huge outflow deprives the country by $350 to $400 million each week from its reserves pushing the country fast towards the old days when it was about to default during 1998-99.

The fast decline of reserves has already cast negative impact on value of the local currency against all foreign currencies. The rupee lost over 17 per cent against the dollar in last seven months.

“The Pak rupee has the lowest value against the dollar in the region as both India and Bangladesh have succeeded to tackle the bullish oil bills and kept their currencies stronger than ours,” said an analyst.

“If the country has to pay $3 billion as debt servicing this year, then it will have no reserves to pay back for its oil bills, meet the trade and current account deficits,” said the analyst.

Latest figures showed that the State Bank’s reserves, which are used to pay the foreign bills, fell to $6.968 billion till August 1, 2008.

Calculations made by research houses show that the country is bound to borrow to pay-off the debt servicing, which may increase this year.

“The rescheduling period of Paris Club loans will be over next year, which means that the country will have to pay much bigger amount as part of the principals of the loans that may increase the return on debt by $1 billion,” said the analyst.

The total loan of Paris Club is still $13.928 billion. The country’s total debt and liabilities have increased by $5.808 billion only last year making the total as $46.389 billion.

The Paris Club loans were rescheduled after the 9/11, which saved Pakistan from default. Then the country improved its foreign exchange reserves to $16.486 billion till October 2007.

However, the political instability slashed the inflows of foreign exchange in the country while the outflow through massive trade deficit, eroded the country’s reserves faster than ever to remain at $10.159 billion.

Over the 1980s, with the cold war in full swing, Pakistan had access to abundant foreign aid, which coupled with a large volume of remittances from expatriates, kept the growth of total debt in check.

The internal debt of the country has also been rising very fast as the government borrowed Rs689 billion from the State Bank alone during 2007-08.

Debt servicing eats up half of reserves -DAWN - Business; August 10, 2008

 

[Neo]

President’s impeachment issue keeps KSE in the red​

KARACHI: The Karachi stock market witnessed a bearish trading week as political uncertainty on news regarding President’s impeachment kept the market volatile throughout the week, analysts said on Saturday.

The market touched a 23-month low of 9,678 points during the week on August 6, 2008.

The Karachi Stock Exchange (KSE) 100 share index lost 261.94 points or 2.57 percent to close at 9,909.45 points as compared with previous week’s 10,171.39 points.

The weekly volume, however, witnessed an increase of 16.31 million shares or 22.39 percent to close the week at 89.14 million shares as against previous week’s close of 72.83 million shares.

On Tuesday, the market opened late and remained under pressure during the wee hours of trade. The KSE 100 index scaled lower to touch an intra-day low of 9,556 points. However, late buying by institutions supported the market to breach the 10,000 points.

Nonetheless, heavy selling was seen on Wednesday, which dragged the index to 9,679 points, a 23-month low level. The index also recorded low volumes of 77.9 million shares on Wednesday as against 131.2 million shares and 143.4 million shares traded on Monday and Tuesday respectively.

On the next day, the index remained highly volatile throughout the trading session. The index earlier slipped to an intra-day low of 9,469 points, however the sentiments turned bullish during mid-session and the index rose to the day’s high of 9,811 points. The index closed at 9,707 points by gaining 23 points.

On the last trading session, the index closed in the green zone by gaining 202 points to settle at 9,909 points. The trend is likely to remain volatile next week if the absence of political and macroeconomic development proceeds.

Moreover, economic indicators further weakened with continued rupee depreciation, while foreign exchange reserves fell by $328 million during the week. This aggravated foreigners’ concern over the country’s economic stability, as they remained net sellers of $3.8 million.

Despite 4 percent decline in oil prices, MSCI EM Asia went down by 2 percent as financial sector concerns and worsening global growth outlook hurt investors’ sentiments. China’s SSEA composite index was down 4 percent whereas Thailand, Malaysia stock indices were down 2 percent and 1 percent, respectively.

Open position in futures is at 38 months low as it was recorded at Rs 5.2 billion with a spread of 0.02 percent. Previous low of Rs 4.9 billion was recorded on June 7, 2005. Similarly, CFS investment stood at Rs 21.1 billion, its lowest level after 23-month and down by 18 percent. Average CFS rate in the week also took a dip of 67bps to stand at 13.74 percent. staff report

http://www.dailytimes.com.pk/default.asp?page=2008\08\10\story_10-8-2008_pg5_1

 

[Neo]

China Mobile to invest another $800m in Pakistan​

ISLAMABAD: China Mobile has announced that it would invest a further $800 million in Pakistan, according to an official statement issued here.

Prime Minister Syed Yousuf Raza Gilani held a series of meetings with Chinese corporate leaders, including Wang Jianzhou, Chairman of China Mobile, Jin Kening, President China National Chemical and Engineering Corporation (CNCEC) and Levin Zhu, Chairman China International Capital Corporation (CICC) during his visit to China.

Chairman China Mobile announced investment of a further $800 million in Pakistan during this year. The Prime Minister welcomed China Mobile’s continuous interest in Pakistan and assured its chairman of his government’s full support in expansion of the company’s operations.

During the meeting with Chairman CNCEC, the Prime Minister appreciated China National Chemical and Engineering Corporation’s $900 million investment by way of operating 8 to 9 plants in fertilizer and PVC sectors in Pakistan. He urged the Chairman to expand his corporation’s operations in the country. He also apprised Chairman CNCEC about Pakistan’s large deposits of coal and urged him that his corporation should invest in the energy sector for electricity generation based on coal.

In his meeting with Chairman China International Capital Corporation (CICC), Levin Zhu, who is the son of former Chinese Premier Zhu Rongji, the Prime Minister commended the able leadership of the former Chinese Prime Minister for steering China’s great progress and development in economic and social sectors. He also lauded former Premier Zhu Rongji’s contributions in strengthening of Pakistan-China relations and in particular the role he played in launching the Gwadar Project. The Prime Minister stated that Pakistan will always remember former Premier’s personal role and commitment in taking the bilateral ties to a higher plane. He briefed Levin Zhu on the priorities of his government in economic fields and urged his corporation to invest in Pakistan’s agriculture, energy and infrastructure sectors. He also emphasised the CICC should consider the possibility of collaboration in banking and financial sectors between the two countries for forming consortiums to invest in Pakistan. Levin Zhu assured him his corporation’s full cooperation in furthering the economic ties between the two countries and stated that he would coordinate his corporation’s future plans for investment in Pakistan with the Ambassador of Pakistan in China.

Prime Minister of Pakistan’s last engagement in Beijing was his meeting with the Chinese Youth delegation. While talking to the delegation, he noted with satisfaction that a 100-member Pakistan Youth delegation had recently visited China and the Chinese Youth delegation was now expected to undertake a similar visit to Pakistan. Underlining the importance of people-to-people contact between the two countries, he expressed his joy that the youth of Pakistan and China, who are the future leaders of their respective countries, were engaged in regular interaction. The Prime Minister was confident that in view of the regular exchanges between the two countries at every level, the Pakistan-China friendship would grow even stronger and deeper in the future.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Services trade deficit grew by 51% in 2007-08​

KARACHI: The country’s services trade deficit registered a sharp growth of 51 percent during 2007-08 and reached $6.3 billion as compared with $4.1 billion in 2006-07, Federal Bureau of Statistics (FBS) reported.

According to the latest data, the import bill of services increased by 19.04 percent to $9.89 billion in the outgoing fiscal year as against $8.13 billion last fiscal.

In the same period, the export revenue though services has shown massive decline. It fell by 13.30 percent to $3.58 billion in FY08 as compared $4.14 billion in FY07.

Economists believed that imports of services have recorded exponential growth in the transportation and communication, telecommunication and insurance, financial and advisory services, construction and engineering and other sectors. On the other hand, they added, “the exports of services have declined significantly in all the traditional sectors owing to lack of quality and high competition.”

In June 2008, the services trade deficit registered a steep increase of 353 percent to touch $203.767 million as against $80.271 million in the same month of 2007.

The services’ import bill rose by 19.25 percent to $866.758 in June 2008 as compared to same month of 2007 that stood at $726.860 million. On the other hand, the exports revenue through services sectors has shown steep decline in June 2008. It plunged by 17.86 percent to $662.991 million as against $807.131 million in June 2007.

In month-on-month term, the trade deficit in June comparatively decreased by 62.95 percent from May that was $550 million.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

July trade deficit up by 49% year-on-year to $1.644bn​

ISLAMABAD: The country has posted a trade deficit of $1.644 billion during the first month (July) of the current fiscal year 2008-09 as compared to $1.102 billion in July 2007, projecting an increase of 49.19 percent.

According to the official data released by the Federal Bureau of Statistics here on Saturday, the exports of the country registered a healthy growth of 29.48 percent and total exports amounted to $1.905 billion as compared to $1.471 billion in July 2007.

The government has targeted a growth of 16 percent in exports during current fiscal year 2008-09 under balance of payment projections. “A growth in exports of 29.48 percent is seen as good sign,” a government official informed.

On the other hand, the imports of the country also witnessed an increase of 37.92 percent in July 2008 with total imports at $3.549 billion as compared with $2.573 billion in July 2007.

The government has fixed exports target at $21.1 billion and expected imports, as per balance of payment projection, are $37.195 billion for the current fiscal year 2008-09.

The balance of payment projections of the country for the current fiscal year 2008-09 project that growth in imports to be curtailed to just 6.5 percent. However, growth in imports during the first month (July) of current fiscal year 2008-09 is way ahead of the projected growth, which would result in higher than expected imports and higher trade deficit, the official added.

Comparison of trade during July 2008 with the month of June 2008 shows dismal performance of the export sector as the exports decreased by 7 percent in July 2008 with a total volume of $1.905 billion as compared with $2.053 billion in June 2008. On the other hand imports in July 2008 also witnessed a decline of 11.81 percent with total volume of $3.549 billion as against the imports of $4.025 billion in June 2008. Trade deficit also decreased by 16.59 percent in July with a total of $1.644 billion as compared with deficit of $1.971 billion in June 2008.

The government has not formally approved the scope and size of the Research and Development (R&D) support for the textile sector. Textile exports constitutes major portion of the country’s exports and providing the sector with no incentives is the the main reason behind trade gap witnessed in July 2008, the official said.

Other issue like increase in the prices of electricity, gas, POL products and depreciation of local currency and LC margin imposed by the State Bank of Pakistan continue to hamper country’s export oriented industries ability to compete in the international markets. Huge subsidies offered by competitor countries is also limiting the ability of the local export oriented industries to market their products in the targeted markets. The government’s policy of discouraging imports of luxury items and non-essential items by imposing 35 percent customs duty have not yielded required results. Customs clearance on lower than the actual price of imported products is also a major concern for the economic managers, which continues to undermine the government’s efforts for curtailing imports.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Sustainable growth: Govt set to give new 5-year plan​

ISLAMABAD: The government is set to give the country a new five-year plan to put the economy on a path of sustainable growth.

Prime Minister has appointed three new members at the Planning Commission in addition to the four newly appointed advisors.

Dr M E Tasneem, who is a former chairman of Pakistan Agriculture Research Council, has been appointed member Food and Agriculture. Parvez Butt, who is secretary Ministry of Science and Technology, has been appointed member Energy. Akram Malik, currently an executive director at Asian Development Bank, has been appointed member Infrastructure.

These appointments are part of the restructuring plan for the commission, which aims at making it a true planner and economic research and policy recommending institution for the government.

According to a statement, the Prime Minister, who is also chairman of the commission, is expected to visit the commission soon to share his vision. Fully cognisant of the urgent need for an integrated and coordinated approach in economic policy making and development planning, the Prime Minister has given the highest priority to building a team of high level professionals and specialists at the Commission to face the mounting economic challenges.

The new members combine rich international and national experience and bring with them excellent credentials and expertise of the highest level in the fields.

Members include Ejaz Rahim, member (Social Sectors), Sohail Safdar, member (Coordination) and secretary, Planning and Development Division, Dr Rashid Amjad, member (Vice-Chancellor PIDE) also performing the function of Chief Economist and Lt General (retd) Muhammad Zubair, member (Implementation, Monitoring and Evaluation) is former Engineer-in-Chief, Pakistan Army.

Daily Times - Leading News Resource of Pakistan

 

[Neo]

Pakistan’s foreign debt jumps above $46 billion​

LAHORE: Pakistan’s total foreign debt and liabilities have risen above $46 billion, showing an increase of 14 percent, Geo News reported on Saturday. According to the figures released by the State Bank of Pakistan, the country’s foreign debt surged by $5.80 billion to $45.28 billion during the last fiscal year, the channel reported. According to the report, a rise of $3 billion was recorded in just the first three months of 2008. Experts say the government is increasing its dependence on the foreign debt to meet the fiscal deficit, according to the channel. daily times monitor

Daily Times - Leading News Resource of Pakistan

 

[Neo]

China assures Bilawal of co-operation in improving economy​

BEIJING (August 11 2008): China has given assurance to Chairman Pakistan People's Party Bilawal Bhutto Zardari of co-operation in improving Pakistan's economy with further investments, besides enhancing contacts at party-to-party level.

This assurances was given to Bilawal Bhutto Zardari at a banquet hosted in his honour and other members of the Pakistani delegation by the senior leader of the Central Committee of the Communist Party of China (CPC) Liu Hongcai here on Sunday.

The members of the delegation included Secretary General of PPP Jahangir Badar, Adviser to Prime Minister on Interior Rehman Malik, the Charged Affairs of Pakistan Embassy, Abdul Salik Khan and others.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'Government facing many challenges to achieve Vision-2030 targets'​

LAHORE (August 10 2008): In the wake of high food inflation and continuous pressure on the country's economy, the government is facing multiple challenges in achieving the Vision-2030 targets that envisage socio-economic transformation of the country with a population growth rate of one percent, poverty alleviation and achieving 100 percent literacy rate.

Analysts consider that it is a gigantic task for the government to achieve the targets of 'Vision-2030'. New challenges are emerging keeping in view the socio-economic changes within the country and around the globe. While achieving the set targets of the vision the country has to face multiple challenges, they said.

Experts told Business Recorder that Pakistan would have the world's fifth largest population ranging between 230 and 260 million by the year 2030 while world population will rise from current 6.3 billion to at least 8.2 billion.

Achievement of 100 percent employment in the country by 2030 is a big challenge for the government. Employment generation and matching of skills in a changing workplace will be central to poverty elimination, economic growth, and social stability, they added. Pakistan is fast approaching the water stress regime, with a storage capacity of only 9 percent of average annual flows compared with a world average of 40 percent, they added.

Achieving 100 percent literacy rate by 2030 also looks very difficult to achieve due to many reasons. However, with committed efforts on the part of government and private sector, better results vis-à-vis implementation of targets of Vision 2030 could be achieved.

Moreover, the Punjab Population Welfare Minister, Neelam Jabbar, said here on Saturday that the government has decided to strengthen the Prime Minister's Basic Healthcare Programme initiated by Benazir Bhutto so that majority of the population would benefit from the programme.

She said that womenfolk would be empowered in all sections of the society and opportunities of employment will be provided to them in government, semi-government and private Organisations so that they can play their due role in the development of the country.

She further said that more than 300 new family welfare centres would be established in Punjab for the provision of basic maternal and child healthcare facilities to the majority of the masses at their doorsteps. She added that the government would provide opportunities of continuous medical education and training to LHWs and LHVs so that they could play vital role in health education of the rural folk.

Further, the sources said the National Program for Family Planning and Primary Health Care launched in 1994 is paying dividend. With well-regulated monitoring and evaluation mechanisms and prompt corrective measures to overcome bottlenecks, the programme is helping in mitigating the basic health problems of rural women and children. The programme was aimed at providing preventive, curative and rehabilitative services and also to expand family planning.

Business Recorder [Pakistan's First Financial Daily]