Pakistani Economic Stress Watch

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shravan
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Re: Pakistani Economic Stress Watch

Post by shravan »

PR engine oil’s stock ends again, all trains delayed

Thursday, August 04, 2011 1:23:15 PM

KARACHI: Pakistan Railways' (PR) engine oil stock has ended once again; it is feared that the trains, already late, will be further delayed now, SAMAA reported on Thursday.
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Re: Pakistani Economic Stress Watch

Post by Gaurav_S »

Industrialists slam increase in power tariff

BTW, 12 hour loadshedding still continues in Pakistan.
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Re: Pakistani Economic Stress Watch

Post by anupmisra »

Gaurav_S wrote:Industrialists slam increase in power tariff

BTW, 12 hour loadshedding still continues in Pakistan.
See, that is a negative way of looking at things in pakiland. Look at it this way: Pakis now have 12 hours of non-stop electricity supply.
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Re: Pakistani Economic Stress Watch

Post by Gaurav_S »

Gaurav_S wrote:Industrialists slam increase in power tariff

BTW, 12 hour loadshedding still continues in Pakistan.
I wonder how are they running radars and other installations, perhaps on generators. Probably amir-khan can go undetected if they repeat Abottabad. That will throw whole country into more chaos.
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Re: Pakistani Economic Stress Watch

Post by Apparao »

Leading aid and development charity Oxfam said 36 per cent of Pakistanis were undernourished, listing Pakistan among the 21 nations of the world which were found to be undernourished according to an interactive map published on Wednesday.

http://www.dawn.com/2011/08/04/36pc-of- ... ished.html
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Re: Pakistani Economic Stress Watch

Post by anupmisra »

Economics 101 by Professor Hafeez. PBUH. May his tribe keep running the L'affaires du Pa'astan. Some nuggets:

Hafeez admits economy in bad shape
Finance Minister Dr Abdul Hafeez Shaikh on Wednesday admitted that the economy was in the doldrums
Dr Shaikh...also admitted mismanagements in the affairs of the state-owned National Bank, while adding that the government was printing huge amount of currency notes to run its affairs.
Now here's the fun part of fundamentals (as any student of economics will quickly point out):
The total foreign direct investment had continuously been declining since the incumbent government came in power, and the finance minister informed the National Assembly that the FDI and the portfolio investment in 2007-08 was $5.45 billion, dropped to $1.91 billion in 2010-11.
The value of currency notes printed during the tenure of the government, currency notes worth Rs201 billion were printed in 2007-08 which jacked up by 100 at Rs439 billion in 2008-09.
the requirement to run its affairs the government borrowing rose more than 100 per cent in 2010-11 when currency notes worth Rs373 billion were printed.
Finance Minister Dr Hafeez Shaikh denies that printing of currency notes directly impacts inflation. However, he said that it results in increased circulation of currency.Duh!!
The prime reason for this increase in currency is heavy government borrowings from State Bank for budgetary support
While, the country is faced with bleak economic situation the finance minister acknowledged that 42 officers had been promoted out of turn in 2009 and 2010 in the National Bank of Pakistan, the largest bank of the country.
the volumes of bad loans were on the rise and loans written off by the banks and financial institutions in 2010 was Rs10.07 billion compared to Rs6.38 billion in 2009.
the aggregate figures of non-performing loans (NPL) of the banking sector by the end of 2010 reached Rs464.85 billion.
The finance minister blamed the economic downturn, rising borrowing cost and global economic recession as the main reasons for surging NPLs.
the repayment capacity of the borrowers had been hit due to reduction in industrial production because of shortage of electricity, gas and poor law and order situation.
Besides the excellent grasp of the fundamentals of Economics 101 (hey, he has a Phd), all is well in the land of the loons. And, here's Dr. Sheikh doing his best impression of a deer caught in the headlights of an incoming freight train.

Image
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Re: Pakistani Economic Stress Watch

Post by krisna »

x posting from tsp dhaaga
^^^^
previously TSPA /RAPES were against giving MFN to India. Now what has changed the stance.
The only things I can think of – If TSPA agreed to it then it is a worsened sign for TSPA sake.
Deteriorating economic conditions-
3.5 friends getting tougher on TSPA not getting easy money/alms etc. for free or thru’ IMF etc.
Not winning any quotas in oiropean markets
Floods having an impact- recall feudal lords with large tracts of land poor electricity
Soossai bummers violent clashes poor industrialization no increased productivity internally displaced peoples etc.

The above are all well known.
But what takes the cake is – the whole conditions are biting the RAPE/TSPA class also in their musharraf.
Slowly but surely the tightening economic crisis is what making them open to MFN with India. Now India though is kaffir, they can exercise taqqiyya till economic conditions stabilize with India’s help. It is a delicate balance.
Previously they used to laugh at our MFN proposal knowing that 3.5 friends would bail them out. Though aam pakiabduls used to suffer because of increased prices in black market for Indian goods purchased thru’ dubai RAPES were relatively immune.

The questions now is for how long TSPA will give MFN status to kuffr nation, how will aam pakiabduls look at this new status.
In the short run it will embolden the RAPES to tighten their economic hold on the populace. once that happens they will rescind the MFN status. They will avoid long term MFN status IMO as it will benefit the common folks there.

JMTs
--

edited- thanks SS (from TSP thread)
Last edited by krisna on 05 Aug 2011 17:26, edited 1 time in total.
krisna
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Re: Pakistani Economic Stress Watch

Post by krisna »

anupmisra wrote:Economics 101 by Professor Hafeez. PBUH. May his tribe keep running the L'affaires du Pa'astan. Some nuggets:

< snip>

Besides the excellent grasp of the fundamentals of Economics 101 (hey, he has a Phd), all is well in the land of the loons. And, here's Dr. Sheikh doing his best impression of a deer caught in the headlights of an incoming freight train.
he does not comment on the revenues of the government- taxes to be paid by RAPES to sustain the economy. :(( :((
large fertile lands in hands of fuedal lords ruling the nation, rich but unwilling to pay taxes.
The remaining 180 million poor TSPians do not have money to pay taxes.
the economic woes have taken a turn for the worse due to a crisis in 3.5 friends who are also angry with TSP double crossing. They are refusing to foot the bill.

So the TSP woes are due to 3.5 friends onlee.
The whole world is defaming TSP and want to unravel it. :(( :(( :(( :(( :(( :(( :((
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Re: Pakistani Economic Stress Watch

Post by Gaurav_S »

Textile crisis brewing: APTMA chairman
He said $10 billion investment on machinery is becoming redundant owing to 10- to 12-hour load shedding of electricity and no gas supply for 150 days a year.

There is no standby arrangement of electricity and it is very difficult to operate on alternative fuel other than gas to keep Captive Power Plants operational, he said.

“Cotton season is on full throttle and industry would have to procure one million bales in August, followed by another two million bales in September,” he said, adding that the industry lacks resources to procure the much needed raw material.

Chairman APTMA said he would meet with government policymakers next week to seek seven-days-a-week uninterrupted gas supply to the textile units. Further, he said, he would pursue the government policymakers for special facility for the industry to manage liquidity.

He said the textile industry has booked huge inventory losses due to stuck up yarn for four months as cotton and yarn prices fell from $2 to $1.

The same situation has come up in India and the Indian government has facilitated its textile industry by providing a special 7.5 percent rebate on exports and has also facilitated industry by providing 5 percent interest rate subsidy on loans, he disclosed.

“We need the same support or at least one-off 5 percent mark up rate subsidy on all loans to create liquidity and save the industry from bankruptcy.”
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Re: Pakistani Economic Stress Watch

Post by sum »

And, here's Dr. Sheikh doing his best impression of a deer caught in the headlights of an incoming freight train.
:rotfl: :rotfl:
Sorry but couldn't resist the ROFLs for these kind of "coffee on keyboard" posts!!
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Re: Pakistani Economic Stress Watch

Post by RajeshA »

Published on Aug 05, 2011
Pakistan losing edge in football export: The News (Pakistan)

Code: Select all

http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=61115&Cat=3
SIALKOT: Pakistan is fast loosing its position as the leading supplier of quality hand-stitched footballs as its share in exports has tumbled to 40 percent from earlier 75 percent, speakers of a consultation moot on the plight of football industry said.

The export data obtained from the US Department of Commerce and the US International Trade Commission suggests that Pakistan in the past had been meeting 75 percent of the global needs, but has now fallen to be the second largest exporter of footballs. “This declining trend is continuing and as the result Pakistan is now meeting just below 40 percent of the global demand,” said Prof. Arshad Mehmood Mirza, Executive Director NGO Baidarie Sialkot.
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Re: Pakistani Economic Stress Watch

Post by Gaurav_S »

Govt’s wrong policies worsening fertilizer crisis
It is a pity that Ministry of Petroleum under the dictation of World Bank and IMF, has proposed to supply natural gas to fertilizer plants just for 15 days in a month which is basic raw material for fertilizer. Under this plan, the SNGPL will supply gas for 15 days on alternative basis, supporting the idea that international lender agencies are ruining Pakistan’s agriculture sector since these agencies suggested the government to use natural gas for power generation and import urea to fulfil country’s agri requirements.
He claimed that new fertilizer plants are based on modern technology that need no shut down and could run continuously for three years without any break but unfortunately, owing to gas shortage, he claimed, his plant, that is considered to be the largest fertilizer plant in the world, had to be shut down 17 times during current season, which not only decrease production but also increase risks for the sophisticated machinery.
Poor pakis... They have state-of-the-art plants but can't run them due to gas shortage. Its like having stolen nukes but no mechanism to deliver them. After textile industry fertilizer plants also looks to be badly affected.
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Re: Pakistani Economic Stress Watch

Post by abhijitm »

[url=XXXhttp://www.pakistantoday.com.pk/2011/05/softwa ... n-md-pseb/]pakistan software export $750m[/url]
Speaking on the occasion, managing director Pakistan Software Export Board (PSEB) Zia Imran said that Pakistan has exported $750 million software solutions last year
funny I can't find a ranking list of pakistani IT companies by revenue. Some of their fastest growing companies within pakistan has revenue in the range of 1-2m dollars. Don't know how they are justifying this figure.

Request if anyone know the link of list of pakistan IT companies by revenue then kindly post.
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Re: Pakistani Economic Stress Watch

Post by abhijitm »

anupmisra wrote:the government was printing huge amount of currency notes to run its affairs.
pakistan is also fanatically printing so many Indian banknotes that we should reduce printing them in India, catch the consignment coming from pakistan and make the notes official. :rotfl:
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Re: Pakistani Economic Stress Watch

Post by arun »

The Railways of the Islamic Republic of Pakistan records “progress” in that nations headlong (d)evolution to 570 AD.

Passenger and freight capacity levels of Pakistan Railways have “progressed” to the levels that existed in 1955 :
Deteriorating PR crisis Only 102 engines for 153 trains

Moayyed Jafri
Wednesday, August 10, 2011

LAHORE: The Pakistan Railways (PR) has only 102 engines to run 153 trains, …………………………..

With the current strength of trains and locomotives, the Pakistan Railways will carry almost the same number of passengers and less freight in 2011 as it did in 1955 while Pakistanís population has increased seven times since then.

The News
Theo_Fidel

Re: Pakistani Economic Stress Watch

Post by Theo_Fidel »

One is staggered by the Paki refusal to even mention the only possible solution for its Railways.

India was WDP-2 by the truck load. They are tough and time tested for our dust and heat and rain. They are also cheap. It would be no problem at all to ship say 200 locomotives to TSP in 2-3 days. Why does not one Liberal Paki ever mention that, Huh! Jihadi Panda ass kissers. :-? :((
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Re: Pakistani Economic Stress Watch

Post by R_Kumar »

r_subramanian wrote:I have a question for experts. For nearly one year, Pak Rupee / US $ exchange rate has stayed around 86 Rupees a dollar. Given that inflation in Pak is around 20%, it means that in real terms Pak Rupee has appreciated against US $.

What is the explanation for this? Why is it not touching century mark yet?
I also get this question. Since I don't have finance background, I struggle to find the exact answer. One thing I know that exchange rate has more than one variables. Difference in two countries inflation is just one of them.

India also has significant inflation but exchange rate is stable. Is it because of foreign investment? Because foreign investment reduces the local currency in the foreign exchange market thus resulting in appreciation of local currency. I think one more reason may be the India's strong financial growth creates very positive impression in the exchange market and like stock market, currency also goes up because of this speculation.

In case of Pakistan FDI is going down, inflation is so high and everyone has got the impression that this country is going down, so logically their currency should go down as well. But looks like its kind of stable in last two years. May be an expert here can explain this.
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Re: Pakistani Economic Stress Watch

Post by ramana »

pandyan wrote:bhy are them not importing advanced chini technology and manufacture jet engine powered diesel locomotions in the land of the pure. chini should immediately export their bullet trains to pures for testing parpases.

You can depend on Pakis to use them for soosai missions as they are bullet trains!
Theo_Fidel

Re: Pakistani Economic Stress Watch

Post by Theo_Fidel »

No expert here but Pakis have a fixed exchange rate IIRC. They can set it anywhere they like as long as they pay out in dollars what is owed in dollars. As long as IMF/Ameriki/Remittance dole keeps coming in at $10 Billion per year combined, they are able to pay the foreign suppliers and there will be no depreciation. When their exports start drying up due to internal inflation, and there is plenty of evidence for this, depreciation will have to restart or the currency reserves will be crushed.
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Re: Pakistani Economic Stress Watch

Post by Prem »

Textile export earnings to fall $1b
http://nation.com.pk/pakistan-news-news ... to-fall-1b
Textiles and cotton account for nearly 60 percent of Pakistan’s exports and are a major source of foreign exchange for its fragile economy, kept afloat by an $11 billion International Monetary Fund loan secured in 2008.
“This year’s textile exports will be between $12.0 billion and $12.5 billion, because of the fall in world cotton prices,” Yasin Siddiq, a top industry official, told Reuters.
Despite severe losses to the cotton crop by 2010’s floods, the value of Pakistan’s textile exports in 2010/11 rose 35 percent to $13.80 billion from $10.22 billion the previous year, mainly because of globally high cotton prices, analysts say.
Pakistani manufacturers of ready-made garments, valued at $1.77 billion in exports last year, fear exports will drop further, citing a significant fall in Christmas demand because of cotton price volatility and Pakistan’s chronic energy crisis making foreign buyers reluctant to place orders. The International Cotton Advisory Committee said this month world cotton production would rise 8 percent to 26.9 million tonnes for the year. The extra production is expected to drive down prices.
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

Theo_Fidel wrote:One is staggered by the Paki refusal to even mention the only possible solution for its Railways.

India was WDP-2 by the truck load. They are tough and time tested for our dust and heat and rain. They are also cheap. It would be no problem at all to ship say 200 locomotives to TSP in 2-3 days. Why does not one Liberal Paki ever mention that, Huh! Jihadi Panda ass kissers. :-? :((
Even Better why does Pakistan not just disband the PR, and sell the steel as scrap. It will bring in valuable foreign exchange. High end Pakis can always travel by Air.
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Re: Pakistani Economic Stress Watch

Post by RajeshA »

Aditya_V wrote:
Theo_Fidel wrote:One is staggered by the Paki refusal to even mention the only possible solution for its Railways.

India was WDP-2 by the truck load. They are tough and time tested for our dust and heat and rain. They are also cheap. It would be no problem at all to ship say 200 locomotives to TSP in 2-3 days. Why does not one Liberal Paki ever mention that, Huh! Jihadi Panda ass kissers. :-? :((
Even Better why does Pakistan not just disband the PR, and sell the steel as scrap. It will bring in valuable foreign exchange. High end Pakis can always travel by Air.
Something similar I wrote:
RajeshA wrote:India breaks down a lot of scrap metal. May be Pakistan can sell India all the rails, Chinese locomotives, carriages, etc. and at least get some money for it, for they wouldn't be using it any more.

Why do they need railways, when the preferred way of transport would be the camel.
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

10 years ago during operation Parakram I wished Pakistan would reach a stage where it can no longer operate PR( it provides important logistics to the PA). Next step RAPES will live in gated comminties and when venturing out they with fauji guards who will shoot an abdul that comes in the way. Situation would be ripe for Internal bloodbath which will lead to 4 smaller states contstantly engaged in fighting each other.
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Re: Pakistani Economic Stress Watch

Post by Gaurav_S »

PepsiCola (PEPCO) directed to pay outstaning amounts and wind up its operations.

Centre given three months to wind up Pepco
PESHAWAR, Aug 11: The Peshawar High Court on Thursday allowed three months time to the federal government to wind up the Pakistan Electric Power Company (Pepco) and directed it to ensure timely payment to the Pakistan State Oil (PSO) on account of supplying furnace oil to power plants to avoid crisis of extreme nature.

It also directed the government that the proposal of getting additional energy from China be also considered on urgent basis, if feasible.

The bench observed that it was expected of the ministry to consider the grave crisis this province was confronted with as 80 per cent of the industries had been closed down rendering thousands of workers jobless, who could become easy commodity
for the miscreants.

The bench also directed the Pesco chief executive that schedule of loadshedding be revisited and no loadshedding should be carried out during Iftar and Sehr times.
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Re: Pakistani Economic Stress Watch

Post by r_subramanian »

According to the online edition of (Pak) The Express Tribune, Pakistan has decided that it would not try and get the remaining part (i.e. US $ 3.4 billion) of the latest IMF bailout, since it has been unable to meet the conditions imposed by IMF.

It was news to me that "Since 1988, Pakistan has sought bailouts from the IMF 11 times and failed to complete all but one of them. The one signed in December 2001 was completed ahead of schedule."
IMF programme: ‘We tried, we failed, we give up’
Having failed to honour yet another agreement with the International Monetary Fund (IMF), Pakistan has abandoned its efforts to seek a restoration of the $11.3 billion bailout programme, which had been suspended last year.
...
The premature end of the most recent bailout programme confirms Pakistan’s image in the international financial community as a ‘single tranche country’ – a nation that applies for a bailout and then fails to live up to its conditions, leading to a suspension of payments after the release of the first tranche.

Since 1988, Pakistan has sought bailouts from the IMF 11 times and failed to complete all but one of them. The one signed in December 2001 was completed ahead of schedule.
...
But they are not giving up.
Following this colossal failure, however, the government may plan on seeking a new IMF programme, according to one senior government official, to pay back the loans from the first programme. The country’s financial position is expected to begin deteriorating sharply in February 2012, when several loans are due for repayment.
link
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Re: Pakistani Economic Stress Watch

Post by sukhish »

r_subramanian,
pakistan is not asking IMF loan, but it is asking for extortion money, plain and simple.
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Re: Pakistani Economic Stress Watch

Post by Yagnasri »

What is difforence guruji they will not repay the loan also. So you can call it anything inclduing begging
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Re: Pakistani Economic Stress Watch

Post by Gaurav_S »

Committee power: Energy crisis will be over ‘soon’
Addressing the LCCI ceremony, the PM said that Pakistan’s exports have crossed the Rs25 billion mark which was an encouraging sign.

He said that the economy was showing signs of improvement and the financial indicators suggested that it was back on track.

He said that tax collection had increased by 36 percent over last year to a record Rs105 billion for the month of July. Talking about energy crisis, he said that government planning to import electricity and to construct new dams in order to meet demand.

The Lahore Chamber of Commerce and Industry (LCCI) president Shahzad Ali called on the Prime Minister to adopt more consistent export policies so that higher export targets might be achieved in the future.
Don't be surprised if you see Chinese helping here to build dams.
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Re: Pakistani Economic Stress Watch

Post by chetak »

The textile guys seem to be doing OK.

Why is MMS backing off on the objections to EU quota relaxations / preferences for the pakis??


Textilers spin out big profits

Sun, Aug 21, 2011

MULTAN: Chairman All Pakistan Bed Sheet and Upholstery Manufacturers Association Khawaja Jalaluddin Roomisaid that there was 30 per cent increase in exports revenue than the target set in the textile sector.

While addressing an Iftar party, he expressed satisfaction that the country earned another three billion dollars through textile sector exports.

He attributed this to increase in international prices. He, however, said exports of bed sheets and towels have seen a fall of five to seven percent.

He stressed upon the government to ensure implementation on Trade Policy 2009-12 and Textile Policy 2009-14 as their non-implementation is creating many problems for industrial sector.

He urged upon the government to resolve issues related to duty drawback as thousands of cases are still pending in the State Bank.

The chairman said that there was 9.2 per cent reduction in export of textiles during July 2011 and it was due to the energy crisis.

He stressed upon the government to ensure uninterrupted power supply to textile sector otherwise the textile sector would not be in a position to sustain its existing performance.
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Re: Pakistani Economic Stress Watch

Post by Gaurav_S »

AoA

Economy suffers Rs15b loss 
due to strike
“More than 80 per cent of industrial units out of more than 20,000 were closed on Tuesday in the city due to absence of public and private transport,” said Khalid Tawab, an official of Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
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Re: Pakistani Economic Stress Watch

Post by VikB »

State of Pukes reminds me of Ayn Rand's Atlas Shrugged. Mayhem in all sectors. Though in this case it is Atlas (got) bombed
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Re: Pakistani Economic Stress Watch

Post by RajeshA »

Published on Aug 29, 2011
Pakistan seeks India’s support to get EU’s GSP plus facility: Fibre2fashion
Pakistan: Junaid Esmail Makda, Vice President of Karachi Chamber of Commerce and Industry (KCCI), has on behalf of the Pakistani business community requested Rita Menon, Government of India’s Textiles Secretary, to support Pakistan in getting European Union’s GSP Plus facility.

On his recent visit to India, Mr. Makda discussed with the Indian Textiles Secretary over Pakistan’s participation in expositions, trade events and other fairs.

In a KCCI press release, Mr. Makda said that an elaborate dialogue was held between him and Ms. Menon on probabilities of collaboration between Indian and Pakistani textile sectors.

Mr. Makda said that Pakistan’s economy experienced a slump owing to nationwide floods which devastated crops. He was hopeful of India’s support during the next session of the EU Parliament, where the matter was pending and may possibly be cleared after some alterations.

The KCCI official hailed the Indian Textile Ministry’s efforts to improve textile exports. He stressed on reducing the misapprehensions between India and Pakistan and boost mutual trade, especially in the areas of textiles and other allied areas.

Mr. Makda, who is also the Chairman of Pakistan Hosiery Manufacturers and Exporters Association (PHMA), said the PHMA is keen on setting up a branch office in India.

He even underscored the prospects of textile machinery and raw materials import from India. He further opined that opening mutual trade of textile machinery, raw materials and Bt Cotton would have a great impact in augmenting mutual trade between the two countries.

Fibre2fashion News Desk - India
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Re: Pakistani Economic Stress Watch

Post by chaanakya »

Attabad lake: Lowering of water level to cost Rs660m
ISLAMABAD: The lowering of water level of the artificial Attabad Lake will cost Rs660 million, concluded a meeting presided by the finance minister on Monday.

Abdul Hafeez Shaikh held a meeting with Frontier Works Organization (FWO) and the National Highway Authority (NHA) to discuss the progress of two projects regarding Attabad Lake as well as the re-alignment of different sections of Karakorum Highway (KKH).

The minister stressed the timely completion of the projects and discussed different financial matters faced by FWO, NHA and other departments concerned regarding the projects.

A massive landslide occurred on July 4 last year near the Attabad village in Hunza Valley, causing a heavy loss of life and property. The landslide blocked River Hunza, which resulted in the formation of a lake, besides inundating about a two-kilometre long stretch of KKH.

The Attabad Lake and the damaged road network of KKH have proven to be a major obstacle for the trade between Pakistan and China. The completion of the two projects is key to utilising the existing trade and energy potential of Gilgit-Baltistan.

The meeting comes just days after President Asif Ali Zardari held a meeting and ordered to expedite the realignment of the damaged portion of KKH, for which funds had been provided by China.
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Re: Pakistani Economic Stress Watch

Post by Vipul »

Pakistan debt: The case of the missing $5.7 billion.

It seems Pakistan's finance ministry and its central bank are not on the same page when it comes to calculating the government's short-term borrowing activity as their figures have an apparent discrepancy of $5.7 billion.

The office in the Pakistan's finance ministry charged with keeping track of the country's total debt and liabilities appears to have no clue about government's short-term borrowing activity in the local bond market, The Express Tribune daily said in a report on Monday.

It added the office was unable to explain an apparent $5.7 billion discrepancy between the amount of loans that the finance ministry claims it paid back and the repayment numbers tracked by the central bank.

According to the State Bank of Pakistan, the government paid back $7.8 billion in principal on public debt during the fiscal year that ended June 30 this year.The finance ministry's figure for the same category is $2.2 billion.

The discrepancy came to light during an internal meeting at the finance ministry, headed by Finance Secretary Waqar Masood.To the shock of all of the officials present, the Director-General of the Debt Office, Masroor Qureshi, appeared to be completely unaware of the discrepancy, the daily said quoting sources.

This is the second time in recent weeks that the Debt Office's claims on the nation's financial liabilities have been called into question by the State Bank.Earlier, the central bank had come up with figures for Pakistan's overall debt and liabilities that were much higher than those declared by the finance ministry.

The main source of the discrepancy appears to be about $4.9 billion in short term borrowing from local banks, the report said.The maturity on all of these loans was less than one year.However, the finance ministry appears to be completely unaware about this borrowing

S M Husnain Bukhari, a senior official at the State Bank, said that most of this money was borrowed for liquidity management purposes, with some even being borrowed overnight.He added that he was not surprised that the figure was not reflected in the finance ministry's documents."He did, however, add that the central bank's figures were accurate and reflected a true picture of the country's financial affairs," the daily said.
Airavat
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Re: Pakistani Economic Stress Watch

Post by Airavat »

Council of Loom Owners Association said rains had damaged various crops including cotton to a great extent in southern Punjab and Sindh, adding cotton was cultivated over 1.8 million acres in Sindh, of which 35 per cent of the crop had been affected by the rains.

They said cotton and rice-producing districts of Punjab and Sindh including Rahim Yar Khan, Bahawalpur, Rajanpur, Thatta, Badin, Sanghar, Dadu, Nawabshah, Naushero Feroze and Sukkur had been under a spell of rains and thunderstorm for the last few weeks, which washed away 1.5 million bales of cotton worth Rs100 billion.

Published in The Express Tribune, September 7th, 2011.
r_subramanian
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Re: Pakistani Economic Stress Watch

Post by r_subramanian »

Can taller-than-Himalayas friend really save Pakistan?
Weekly inflation up 16.3pc on higher food prices
Weekly inflation increased by 16.33 per cent during the week ended on Aug 30, over the corresponding period last year owing to high food and energy prices in the domestic market.
...
Inflation in the non-food category of SPI {Sensitive Price Index} appears to be driven by increase in prices of diesel, petrol, gas, CNG and power tariff rates, which translated into higher freight and production costs triggering inflation.
As a result price of 18 items witnessed an increase during the period under review over the last year.
Consequently, the SPI witnessed an increase of 14.24 and 14.11 per cent, respectively, for households in the two lower income brackets of up to Rs3, 000 and Rs3, 001 to Rs5, 000.
For households in the income brackets of Rs5,001 to 12,000, the increase in the SPI was in the range of 20.14 per cent, and for households in the income basket of over Rs12,000 the inflation registered a growth of 21.60 per cent over the same week
last year.
...
link
Theo_Fidel

Re: Pakistani Economic Stress Watch

Post by Theo_Fidel »

http://www.deccanherald.com/content/191 ... gines.html

Pak move to lease Indian engines challenged in court
Lahore, Sept 15 (PTI)
Pakistan Railways is planning to lease 50 locomotives from India to overcome a crippling shortage of railway engines but the move has been challenged in court.

Lawyer Ansar Jaspal filed a petition in the Lahore High Court yesterday that said the federal government had decided to lease 50 locomotives from to improve train services.

He contended that the Risalpur factory had the capacity to manufacture 25 locomotives a year, and therefore, the government should use its own resources instead of seeking help from India.

He urged the court to restrain the government from leasing locomotives from India and to direct it to utilise national resources.

Moreover, he said, the Pakistan Railways should be ordered to make functional 450 locomotives that are currently out of order.
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