DAILY BUSINESS NEWS IN BRIEF: 12.08.2011

Pakistan July exports jump record $ 2.2 Billion

KARACHI: Pakistan export has surged by 27.6 percent to highest ever figure of $ 2.203 billion during July 2011-12.

According to the trade data compiled by Trade Development Authority of Pakistan (TDAP), this is the highest ever exports for the month of July in the history of Pakistan.

Pakistan's exports during July 2010 remained at $ 1.726 billion.

Imports during July 2011 valued at $ 3.689 billion registering a growth of 13.9 per cent over the level of imports of $ 3.239 billion in July 2010.

TDAP chief executive Tariq Puri said that the Ministry of Commerce and Trade Development Authority of Pakistan will continue to support and collectively facilitate the business community to maintain this momentum going forward while ensuring the provision of enabling environment.

He said the new initiatives taken by TDAP to focus on regional markets is paying off and is a positive sign in our exports.

Pakistan's first communications satellite launched

Pakistan's first Communications Satellite PAKSAT-1R, as a part of Pakistan's Space Programme-2040, was launched on Thursday at 2117 hrs on board China's Satellite Launch Vehicle from the Xichang Satellite Launch Centre.

Besides others, launch was witnessed by Secretary Defence Lieutenant General Syed Athar Ali (Retd), Secretary Foreign Affairs, Salman Bashir, Director General, Strategic Plans Division Lieutenant General Khalid Ahmed Kidwai (Retired) and Ambassador of Pakistan to China, Muhammad Masood Khan, said a press release issued here.

PAKSAT-1R has a total of 30 transponders, 12 in C-band and 18 in Ku-band. The satellite will be deployed at 380E in the Geo-stationary orbit and it will replace the existing satellite PAKSAT-1. PAKSAT-1R has a design life of 15 years and will provide TV broadcasting, Internet and data communication services across South and Central Asia, Eastern Europe, East Africa and the Far East. This satellite now enables extending of communication services to all areas of Pakistan.

It may be recalled that the National Command Authority (NCA) recently approved Pakistan's Space Programme-2040 during its meeting at the Strategic Plans Division (SPD) on 14 July 2011. Earlier, the contract for the development of PAKSAT-1R was signed between Pakistan Space and Upper Atmosphere Research Commission (SUPARCO) and China Great Wall Industry Corporation (CGWIC) in October 2008 during the visit of the President of Pakistan to China. Pakistani engineers have worked closely with their Chinese counterparts during all stages of development of the satellite in China. Some experimental units developed at SUPARCO have also been integrated on the satellite for technology evaluation.

China and Pakistan have enjoyed more than 20 years of co-operation in Space Science, Technology and Applications. The launch of Paksat-1R Satellite is a major milestone for both countries towards strengthening of this co-operation. SUPARCO will continue its efforts for launching of other satellites including Remote Sensing Satellites, to ensure that the space technology applications fully contribute to socio-economic development and national security in Pakistan.

Consensus bill on Sindh local govt planned

ISLAMABAD: The Pakistan People’s Party has decided to table a consensus local government bill in the Sindh Assembly to address the grievances of all sections of people in the province.
The decision was taken at a meeting of Sindh PPP leaders presided over by President Asif Ali Zardari here on Thursday.
“We presented our point of view before the president and he assured us that grievances of Sindhi people would be addressed in the new LG system to be enforced in the province,” Law Minister Moula Bakhsh Chandio told Dawn.
The Sindh government rolled back the recently-enforced commissioner system and restored the Musharraf-era local government system in the province on Sunday to win back the Muttahida Qaumi Movement which had quit the coalition government.
An ordinance to that effect was issued by Sindh Governor Ishratul Ibad, but the provincial government will have to get a bill adopted in the assembly to make it a law because under the 18th Amendment no ordinance can be promulgated for a second time.
The meeting decided that the LG system would not be replaced; it would be made to suit all stakeholders.
“The meeting discussed the political situation in Sindh and decided to continue dialogue with all political forces with a view to fulfilling democratic aspiration of the people of the province,” president’s spokesman Farhatullah Babar said.
The meeting was attended by Makhdoom Amin Fahim, Dr Abdul Hafeez Shaikh, Rehman Malik, Moula Bakhsh Chandio, Ghous Bux Mahar, Syed Khursheed Shah, Dr Asim Hussain, Syed Naveed Qamar, Dr Firdous Ashiq Awan, Rukhsana Bangash, Fouzia Habib and Farhatullah Babar. Interestingly, former law minister Babar Awan whose role in connection with the restoration of the LG system was severely criticised by PPP ministers from Sindh was not invited to the meeting.
The meeting was of the opinion that those who were in minority in the Sindh Assembly should accept the decision of majority on the restoration of the LG system. “The government has restored the LG system because it was under severe pressure to maintain peace in Karachi. Now everyone should realise the situation and should not talk about the division of Sindh,” the law minister said.
Ghaus Bux Mahar said the president had been apprised of merits of the commissioner system that had been revived for a week. “President Zardari said he was negotiating with the MQM so that they could rejoin the coalition government and the issue of LG system would also be resolved in consultation with the Muttahida,” Mr Mahar added.
Answering a question about the absence of Senator Babar Awan from the meeting, he said some PPP leaders had complained to the president about the role played by him in the restoration of the LG system and ‘mishandling’ of the issue.
According to sources, the PPP leadership was of the opinion that grievances of nationalist parties had been addressed with the restoration of a uniform LG system in the entire province.
Leaders of Sindh nationalist parties have rejected the LG system and decided to launch a campaign, with a strike on Saturday, against the government till the restoration of the commissioner system.
“We will not accept any amendment to the Local Government Ordinance 2001 even if we are invited by the PPP for talks on the proposed bill,” Jeay Sindh Tehrik chief Dr Safdar Sarki said.
He said nationalist parties had opposed the Musharraf-era LG system because it was meant for the benefit of only one party — Muttahida Qaumi Movement. “It is unfair that Karachi with a population over 20 million has been made one district and
Hyderabad with a population of only two million has been split into four districts,” he said.
Dr Sarki said the issue could be resolved only if the government first enforced the commissioner system and then convened a meeting of all stakeholders and political parties for a consensus on what sort of system should be imposed in Sindh.

Savings improve, investment drops

KARACHI, Aug 11: While the higher remittances saved the country to face current account deficit, it also increased the saving rate in FY2011 despite double digit inflation.
The State Bank in a report stated that the national saving rate had increased to 13.8 per cent of gross domestic product (GDP) mainly due to increase in net factor income from abroad.
The consumers have to spend more money in presence of double digit inflation which the country has been facing for the last four years.
In the last four years the cumulative impact of inflation was 76 per cent which eroded the buying capacity of the consumers while savings dropped.
The State Bank report said that the credit for working capital increased last year mainly because the borrowers had to spend more money for buying goods mainly due to inflationary impact.
This inflationary impact, which is visible in the life of common people, also reflected from prices of raw material to finished products. Analysts said higher cost of production due to inflation could hit the country hard this fiscal year particularly on
export front as price trend was not in favour of costly product as it was last year.
Bankers said the remittances had saved the situation for banks as they reported improved deposits which enabled them to invest in government papers and remained profitable despite poor economic growth of just 2.4 per cent in FY2011.
They said record remittances of $11.2 billion in FY2011 improved savings; however, it is lower than India and Bangladesh.
Gross National Saving as percentage of GDP of Bangladesh was 37.5 per cent in FY2009.
The State Bank also reported that the gross total investment of Pakistan had come down to 13.4 per cent of the GDP in FY2011. The improvement in savings did not reflect investment trend, which is falling.
However, the State Bank said the gap between national saving and investment as a per cent of GDP had turned marginally positive.
Since this positive gap is mostly due to falling investment, it cannot be considered as an encouraging development from the perspective of reviving economic activities and sustaining high growth over the medium term, it said.
Analysts say whatever is being saved in financial institutions, is being invested in government papers that is non-productive and does not help the economy to perform better.
While the saving requires further improvement, there is a need for better use of it and should be reflected in the economic growth, they said.
They said saving rate was still much lower than a sound level that requires protecting the economy as well as financial system from vulnerability.

Business News

Thu, 11 August 2011 - Gold hits new height; tola Rs57800 The gold rate of 10 grams shot up by Rs771 to Rs49542. The commodity's rate in the international market has seen a rise of 28 dollars to 1785 dollars per ou - Forex reserves ease to $17.97bn Reserves held by the State Bank of Pakistan (SBP) fell to $14.46 billion from $14.78 billion a week ago, while those held by commercial banks al - Gold climbs to record high, oil falls on euro crisis The euro's financial woes returned to focus on rumours France may be in trouble, stealing the spotlight from the U.S.Feder - Dollar slips toward record yen low in Asia The greenback was trading at 76.62 yen, down from 76.83 yen in New York on Wednesday. The euro firmed to $1.4209 from $1.4168, but dipped to 108.89 yen from 108.9 - Asian stocks mostly lower, early losses trimmed Gold also eased slightly from its record high after breaching the $1,800 barrier for the first time, but the yen edged towards a fresh high against the dollar - KSE goes after global rally Analy - rises in Asia in line with Asian equities Brent North Sea crude - Cooking oil, ghee prices decrease by Rs3 General Secretary of the Karachi Retail Grocers Group, Fareed Qureshi said that in the local market, the wholesale price of 16 kilograms of ghee is Rs2,480 - Asian stocks bounce back on Fed announcement Markets in the US jumped after a dovish Fed admitted economic growth this year had been "considerably slower" than expected, and indicated inflation fears had eased. - Gold touches historic highs; reaches Rs 57,000/tola Ac BRIEF NEWS: Ø  US condemns bomb blast Ø  2 sub-committees formed resolve energy issues Ø  Rioters will ‘Pay for what theyhave done’: Cameron Ø  Pakistan in touch with UK on safety of Pakistanis: FO Ø  India wants Sarabjit released on humanitarian ground Ø  Turkey to help Pakistan alleviate energy crisis   Mohammed Saleem Mansoori