Reserves rise to record $17.44bn

Reserves held by the SBP rose to $13.91 billion from $13.76 billion in the week ending February 12. — File Photo

KARACHI: The foreign exchange reserves rose to a record $17.44 billion in the week ending February 12, up from $17.31 billion the previous week, the State Bank of Pakistan said on Thursday.

Reserves held by the SBP rose to $13.91 billion from $13.76 billion in the week ending February 12, while those held by commercial banks fell to $3.53 billion from $3.55 billion, said the central bank.

“Foreign exchange reserves rose to a record because of a rise in remittances and increasing exports,” said Syed Wasimuddin, chief spokesman for the State Bank.

Remittances by overseas Pakistanis were recorded at $6.12 billion during the first seven months of the fiscal year 2010-11, up 17.70 per cent from the same period last year, according to SBP data.—Reuters

President for round-table on economic reforms

 

 The president suggested the businessmen to make consortiums of leading entrepreneurs. — File Photo

ISLAMABAD: President Asif Ali Zardari on Thursday invited the business community to convene a meeting of all political parties over economic reforms to devise a strategy for placing the economy on strong footings. 

Talking to a delegation of the Pakistan Business Council here on Thursday at the Aiwan-i-Sadr, the president offered the presidency as the venue of the roundtable meeting, adding that he would participate in it as co-chairman of the PPP along with leaders of other political parties and not preside over it as president, according to presidential spokesman Farhatullah Babar.

Pakistan’s 3-month fiscal deficit at 1.6 pct of GDP

This compared with a fiscal deficit of 1.5 percent in the same period last year. — File Photo

KARACHI: Pakistan’s budget deficit for the first three months of the 2010/11 fiscal year, which runs to next June, was 1.6 percent of gross domestic product, the Finance Ministry said on its web site on Wednesday.

This compared with a fiscal deficit of 1.5 per cent in the same period last year.

Pakistan announced last month a fiscal deficit of 4.7 per cent of GDP, agreed with the International Monetary Fund for fiscal year 2010/11 as part of an $11 billion bailout programme dating from 2008.

Govt sees Rs28bn loss

"Government is claiming that the RGST law implementation could lead to an additional Rs28-30 billion in the first year." — File Photo

ISLAMABAD: The government estimates show that an annual revenue loss of over Rs28 billion on 10 major products is expected owing to proposed single rate of 15 per cent under the reformed general sales tax (RGST) bill, a tax official told Dawn on Tuesday.

In absolute term, 80 per cent of the domestic sales tax revenue has been generated from the top 10 products at an average rate of 17 per cent besides special rate of 19.5 per cent on the telecom sector and 25 per cent on the natural gas, casting doubts over the health of the finance ministry projected figures that RGST implementation would yield additional revenue for the kitty.

SBP raises rate to rein in inflation

SBP hiked its key policy rate by 50bps for the third time in a row to stem runaway inflation and blamed govt for hampering the bank’s efforts to contain excessive monetary expansion. – File Photo

LAHORE, Nov 29: The State Bank of Pakistan (SBP) hiked on Monday its key policy rate by 50bps for the third time in a row to stem runaway inflation and blamed the government’s inflationary budgetary borrowings from it for hampering the bank’s efforts to contain excessive monetary expansion. 

The bank has raised discount rate by 150bps during the current financial year to 14 per cent since the end of July to control inflation.

IMF projects 14pc inflation, 2.75pc GDP growth

The IMF noted although the major export plants had escaped physical damage, cotton and textiles exports might be lower. — File Photo

WASHINGTON: The International Monetary Fund has projected that during 2010-11 Pakistan will have an average inflation rate of 14 per cent and a real GDP growth of 2.75 per cent. 

“The balance of payments is expected to weaken in 2010-11, due in part to the impact of the floods,” said an IMF statement issued in Washington on Tuesday.

“Imports will rise as food and other basic goods will need to be sourced from abroad and imports of capital equipment for reconstruction will increase,” the statement said.

IMF, govt agree to revise inflation target to 15 percent

 ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have decided to revise the inflation target to 15 percent from 13.5 percent for the current fiscal year in the wake of rise in commodities’ prices and electricity tariff, The News has learnt.

The inflation target was fixed at 9.5 percent in the budget and later revised to 13.5 percent.
Federal Public Sector Development Programme (PSDP) has been slashed to Rs150 billion from Rs 280 billion. Both sides have also agreed to cut the provincial annual development programmes by 50 percent.

Milk price surges Rs4/lit

KARACHI: Pakistan is the fourth large milk producer in the world; however, the prices of milk products continue to rise higher every other day, Geo News reported Monday.

Milk price has once again today mounted Rs4 per liter.

Talking to Geo News, Sindh Dairy Farm Chairman said milk was Rs44/lit last year, which has soared Rs12 to Rs56/lit this year.

To cap it all, milk price burgeoned by Rs4 from November.

It should be mentioned here that some days back, Sindh High Court (SHC) ordered milk be sold at Rs37/lit; however, this order could not be put into practice.

Inflation touches record 20.68pc in a week

ISLAMABAD: The inflation rate, during the last week which ended on October 14, was up record 20.68 percent comparing to the corresponding week last year, Geo News reported Monday evening.

According to the calculations of Federal Bureau of Statistics, the last week, ended on October 14, witnessed rise in inflation rate by 20.68 percent more than how it was observed during the same period last year.

The Sensitive Price Indicator (SPI) for the week ended on October 14 for the lowest income group up to Rs.3,000, has registered increase of 0.88 percent over the previous week.

Asia to lead world recovery but on hot money: IMF

China's allegedly undervalued yuan has been the target of strong complaints from the United States and Europe, who say Beijing is unfairly gaining a trade advantage by cheapening its exports. – File Photo

JAKARTA: Asia is leading the global recovery but must beware of inflation and “excessively easy” domestic finance fuelled by foreign capital inflows, the International Monetary Fund said Thursday.

The Fund's latest economic outlook for the Asia-Pacific region said growth would moderate in 2011 in the advanced economies while remaining “particularly strong” in China, India and Indonesia.

Petrol prices to further increase in May

KARACHI: Sources from the Ministry of Petroleum confirmed on Tuesday that petrol prices were set to increase further in the month of May. This announcement comes at a time when commodity prices along with electricity tariffs have gone up, and the country is facing a major power crisis.
 

India plan panel need to target 5pc inflation

NEW DELHI: India should aim for annual inflation at 5 per cent and try to lower this for economic growth to benefit the broader population, the Planning Commission said in an internal document.

“Price stability is imperative for realising inclusive economic growth,” according to the draft paper, circulated as part of a review of the economy, and obtained by Reuters.

UK retail sales bounce after record Jan fall

LONDON: A surge in demand for household electrical goods helped British retail sales bounce back in February after the worst January on record, official data showed on Thursday.

The Office for National Statistics said sales volumes jumped 2.1 per cent last month, the biggest increase since May 2008 and three times as fast as analysts had forecast.

Pak inflation seen at 11pc: IMF

Saturday, January 09, 2010
KARACHI: Pakistan’s expected rate of inflation for the 2009/10 fiscal year has been revised upwards to 11 per cent from an earlier projection of 9 per cent on higher energy costs, the International Monetary Fund (IMF) said.

Pakistan agreed in November 2008 to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves. The fund increased the loan to $11.3 billion in July and released a fourth tranche of $1.2 billion last month.

IMF sees Pakistan GDP expanding at 3pc in 2009-10

ISLAMABAD: The International Monetary Fund (IMF) says the political and security situation in Pakistan remains challenging, economic reform does not command broad support and adverse security developments continue to hurt the confidence of domestic and foreign investors. 
 
As a result, projected economic growth for 2009-10 would be a modest three per cent, IMF says in a programme note on Pakistan issued following the approval of the fourth tranche of $1.2 billion by the Executive Board in Washington on Wednesday.