Pakistan, Romania to boost trade

The commission will hold its meeting once in a year alternately in Islamabad and Bucharest. - File photo

ISLAMABAD, Sept 12: Pakistan and Romania have decided to set up a joint commission to explore new avenues of bilateral economic cooperation and develop proposals for cooperation between government institutions of the two countries.

Secretary Economic Affairs Division Abdul Wajid Rana and Romanian Ambassador in Pakistan Emilian Ion signed an agreement here on Monday to formally institutionalise the joint economic commission.

Pakistan trade deal brings limited profit for Kabul

"Afghanistan also agreed to allow Pakistan traders to seek routes to central Asia along Afghan roads." — File Photo

KABUL: A deal to open new export markets for Afghan products, by creating a tax-free transit corridor to India through Pakistan, is lopsided and may cement Islamabad’s resented grip on the Afghan economy, traders and officials say.

The US-sponsored transit agreement which comes into effect next year allows Afghan trucks to drive tax free across Pakistan up to the Indian border with products for sale there — but they cannot load up with Indian exports for the return journey.

China emerging as player in global arms trade

The growing sales coincide with a sharp decline in China's weapons imports, although it remains dependent on Russia for key components. — File Photo

ZHUHAI: China is emerging as a competitor in the international arms market, offering increasingly sophisticated fighter jets, missiles and equipment that are beginning to rival Russia and other longtime exporters.

With the same low-cost strategy that worked for toys and electronics, Chinese firms are targeting cost-conscious customers, albeit in an industry still dominated by the United States, Russia, France and Britain.

PIA plans fleet expansion

ISLAMABAD: The loss-hit Pakistan International Airline (PIA's) plans to expand its fleet with the purchase of 40 new planes over the next five years, Defence Minister, Ahmad Mukhtar, said on Thursday.

Ahmad Mukhtar told parliament that the planes were needed to arrest PIA's growing deficit.

The state-run airline currently services domestic and international routes with a fleet of Boeing 777, Boeing 747, Airbus A310, Boeing 737 and ATR-42 aircraft. "If PIA does not buy new planes, it will have to close down," Mukhtar said. "When we have the new aircraft the deficit will come down as we will be able to increase the number of flights."

Mukhtar said the defence ministry would present the plan to the federal cabinet this month, but did not give further details of the purchases. He said that PIA was not receiving government subsidy, but had taken out bank loans that it is currently repaying.

PIA suffered a loss of $135.8 million in the first nine months of the year, according to its third-quarter financial report posted on the airline's website. Accumulated losses stood at Rs88 billion ($1 billion).

PSM aims to earn profits by June

LAHORE: Pakistan Steel Mills (PSM) expects to become a profit-earning institution and operate on 100 percent production capacity by the end of this financial year, said acting Chief Executive Officer (CEO) of PSM Imtiaz Lodhi in an interview with The News.

“The PSM has been working at 50 percent capacity; it will reach 75 percent by the end of December 2010; 90 percent by March 2011; and 100 percent by June 2011,” he said.

He said he had assured the dealers that no action would be taken against them by the FIA. They wanted to keep away from PSM owing to the ongoing investigation, he said, adding that written assurance would also be provided to the dealers about the FIA investigation. He said PSM had asked FIA officials to restrict their investigation to the period when the matter under probe came to light. “The FIA officials also promised not to harass anyone and keep their investigation to that period,” he said.
To a question about the difference in prices of PSM products and the open market, Lodhi said some parties were misusing the SRO of steel raw material import. “They import items more than their requirement, thanks to zero-rated regime, which they later sell in the open market at prices lower by Rs2,000 to Rs4,000 per ton than PSM prices.”

PSO posts highest-ever sales

ISLAMABAD: The Pakistan State Oil (PSO) sold 275,850 tons of gasoline during the first quarter of the current financial year, which is the highest-ever quarterly sales in its history, an official of the company said in a statement on Monday.

However, the quarter was marked by downward trend in the country’s fuel consumption due to the devastation of communication infrastructure and closure of some power entities caused by the recent floods, the official said.

Hafeez says IMF assures next tranche on May 14

WASHINGTON: Finance Adviser Dr Abdul Hafeez Sheikh has said that an arrangement with the International Monetary Fund compels Islamabad to increase power tariff by additional six per cent but the government is trying not to pass on the entire burden on consumers.

Dr Hafeez explained at a news conference here on Tuesday that the agreement required Pakistan to increase power tariff in three instalments of six, 12 and six per cent, respectively.

IMF board likely to meet mid-May on Pakistan

WASHINGTON: The International Monetary Fund's board will likely meet in mid-May to consider the next tranche of Pakistan's $11.3 billion loan, a source close to talks between IMF officials and Islamabad said on Friday.

Pakistani finance officials are in Washington this week for spring meetings of the IMF and are also talking to the World Bank and the Asian Development Bank over steps being taken to raise electricity tariffs and other taxes that are unpopular with the public and politically risky for the government.

Finland donates 3 million euros' aid to Pakistan

HELSINKI: Finland has donated 3.0 million euros (4.0 million dollars) into a fund for the reconstruction and stabilisation of areas of Pakistan on the Afghanistan border, the foreign ministry said Friday.

“The stability of Pakistan and the stability of Afghanistan are closely linked and supporting border areas also promotes broader regional development,” it said in a statement.

Bidding for RBS likely this month

KARACHI: Bidding to buy stakes in the Royal Bank of Scotland (RBS) is likely to take place during the last week of this month, said banking industry sources.

“Bidding to buy strategic stakes in the Royal Bank of Scotland Pakistan is expected to take place between April 28 and April 30,” said the sources.

UBL, Visa Pakistan sign deal

The United Bank Limited and a payment solution provider, Visa Pakistan, on Wednesday signed an agreement to provide easy access to cash by deployment of electronic point of sale to the internally displaced persons of North West Frontier Province.

Under the agreement, machines are being installed at designated places, including Dera Ismail Khan, Mardan, Mingora, Batkhela and Peshawar.

IMF wants Pakistan to peg fiscal deficit at 5.1pc

KARACHI: The International Monetary Fund (IMF), likely to approve $1.2 billion loan for Pakistan during a board meeting scheduled to be held on May 3, wants Islamabad to peg the fiscal deficit at 5.1 per cent of the GDP, an official of the Finance Ministry said.

Govt seeks relaxation in IMF

ISLAMABAD: The government has requested for modification in the performance criteria for budget deficit to increase the cumulative end-quarter ceiling of Rs22 billion to allow space for urgent security outlays and avoid undue cuts in other priority spending, The News learnt on Wednesday.

The Finance Ministry submitted the Letter of Intent (LoI) and the fourth Supplementary Memorandum of Economic and Financial Policies (SMEFP) to the IMF office in Islamabad after the recently-held discussions on the fourth review under the Standby Arrangement (SBA).

IMF assures Pakistan to get next tranche in May

ISLAMABAD: The International Monetary Fund (IMF) has assured Pakistan it will approve the release of the next tranche of an $11.3 billion loan at a board meeting on May 3, the Pakistani prime minister's office said on Wednesday.

Prime Minister Yusuf Raza Gilani said in talks with the IMF in Washington that his government was trying to broaden Pakistan's tax base and keep the budget deficit “close to” 5.1 per cent of gross domestic product, according to a statement from his office.

Weak rupee boosts exports, data proves the contrary

LAHORE: The myth that rupee depreciation boosts exports is not true as exports remained stagnant from 1994 to 1999 despite massive rupee depreciation, but rose appreciably when the rupee was stable from 2003 to 2008, analysis of trade data reveals.

The foreign trade data of past two decades collected by The News showed that devaluation of rupee almost always failed to boost exports that grew during the period when the rupee remained stable against the dollar.

Tetra milk price raised by Rs4 per litre

KARACHI: A leading tetra milk producer has given a pre-budget shock to its consumers by pushing up the price of one-litre pack by Rs4 to Rs62.

After announcing price hike by the main player other producers will follow suit shortly.

SECP’s corporate portfolio crosses 55,000 companies

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has registered 293 companies during March, taking the total corporate portfolio as on March 31, 2010 to 55,200 companies.

Authorised capital and paid-up capital of the companies incorporated during the month amounted to Rs4,329.45 million and Rs451.82 million, respectively.

SECP Company Law Director Mohammad Siddique said that as the investors have reposed confidence in the overall economic situation and improvement in the law and order situation new companies are being incorporated in the commission.

MCB mobile money service nominated best in world

KARACHI: Mobile World Congress has nominated MCB Mobile, a service launched by the MCB Bank in 2009, as the best across the world.

The nomination was an acknowledgement for the recently launched innovative mobile banking solution by the MCB Bank and GSM Association (GSMA), said a press release.

Pakistan, the most dangerous country in the world?

The year was 1994. It was an authentic spring morning in March and I was sitting with a group of friends at La Baguette Cafe. The room as usual was noisy, filled with mists of cigarette smoke; waitresses were pale skinned, dark haired and dressed in black.

This was in the heart of mid- west USA. In Norman, Oklahoma to be precise; at my good old University of Oklahoma-OU. The café was established by the Jazzar and Khouri families in the 80’s, recognizing the need to attract a healthy population of European students and curious Americans.

IMF Board set to meet in coming weeks on Pakistan

WASHINGTON: The International Monetary Fund’s Executive Board will meet before mid-April to review Pakistan’s loan after a meeting this month was postponed to enable a value-added tax law to be submitted to provincial assemblies, the IMF said on Wednesday.

The IMF meeting is to approve the fifth tranche of a loan to Pakistan, which

turned to the IMF for an emergency package of $7.6 billion in November 2008 to avert a balance-of-payments crisis and shore up reserves.