PRO 13-11-2012_Layout 1 11/13/2012 12:52 AM Page 1
Tuesday, 13 November, 2012
‘Inflation will stick to single-digit this year’ ISLAMABAD
T
APP
HE average inflation rate is projected to stay in single-digit during the current fiscal year (2012-13), indicating better economic conditions, increased consumer confidence, and reduction in prices for country’s people. “Overall in the current year (July 2012 to June 2013) the average inflation is expected to be in single-digits,” Advisor and Spokesman to Finance Ministry, Rana Assad Amin told APP. Consolidating his statement, he said that lowest-ever prices rise was recorded during last few months, showing a sign of stabilization of prices in the market and a much-awaited relief for the people and businessmen of the country. “Price increase in food and nonfood items has been slowing down for the past many months and in October 2012 price increase was at its slowest pace since January 2008,” he added. He attributed this achievement to government’s efforts in monitoring prices, ensuring continued supply of essential items, and tightly controlled economic policy. In the past, reductions in price increase have resulted in decrease in interest on bank loans while average interest rates have reduced from a high of 15% in 2008 to 10% in October 2012. “This means that for the same amount of loan, businesses are paying 50% less interest as compared to 2008 which is an encouragement for businesses to increase their production and reduce their borrowing costs.” The falling trend in price rise diverted investors to invest in equities of Pakistani businesses adding as of 2 November 2012, the Stock Exchange was trading at an all-time high of 16,000 + points. “This is the amount of investment that has never seen before in the history of Pakistan - demonstrating confidence of Pakistani people on the economy,” he added. Advisor to Ministry of Finance, Rana Asad Amin said that when the present government came to power in 2008, the economy was displaying a dismal picture, due to multiple external and internal shocks of extreme nature. Average price rise in August 2008 was 25% as compared to August 2007
Weekly inflation takes a plunge ISLAMABAD APP
The Sensitive Price Indicator (SPI) for the week ended on November 8, for the lowest income group up to Rs.8,000, registered decrease of 0.13 per cent as compared to the previous week. The SPI for the week under review in the above mentioned group was recorded at 181.77 points against 182.01 points registered in the previous week, according to provisional figures of Pakistan Bureau of Statistics (PBS). The weekly SPI has been computed with base 2007-2008=100, covering 17 urban centers and 53 essential items for all income groups and combined. The SPI for the combined group decreased by 0.15 per cent as it declined from 187.58 points in the previous week to
whereas on average items costing Rs100 in August 2007 were sold for Rs125 by August 2008. “The rapid price increase was a direct result of record high international oil prices and record borrowings by the previous government,” he added. He said that imprudent economic policies of the previous government resulted in an economic bubble-burst and where the country had to suffer a trade deficit of around $15 billion, which drastically depleted foreign reserves and forced the incumbent government to seek International Monetary Fund (IMF) assistance. In October 2012, the average food prices have increased by 5.8% as compared to October 2011 while overall
187.29 points in the week under review. As compared to the corresponding week of last year, the SPI for the combined group in the week under review witnessed increase of 4.52 percent. As compared to the last week, the SPI for the income groups from Rs.8001-12,000, 12,00118,000, 18001-35,000 and above Rs.35,000 decreased by 0.14 percent, 0.16 percent, 0.16 and 0.15 percent respectively. During the week under review average prices of 7 items registered decrease, while that of 17 items increase with the remaining 29 items’ prices unchanged. The items which recorded decrease in their average prices during the week under review included tomatoes, onions, red chillies (powder), chicken live (farm), vegetable ghee (loose), potatoes, moong pulse (washed).
The items which registered increase in their prices included gur, egg hen (farm), wheat, sugar, wheat flour (bag), tea (packet), bananas, LPG( 11 kg cylinder), firewood, masoor pulse (washed), georgette, washing soap, mash pulse (washed), energy savor, mustard oil, rice basmati (broken) and garlic. The items with no change in their average prices during the week under review included rice (irri-6), bread (plain), beef, mutton, milk (fresh), curd, milk (powdered), cooking oil (tin), vegetable ghee (tin), gram pulse (washed), salt powdered (loose), cooked beef, cooked dal tea (prepared), cigarettes, long cloth, shirting, lawn, sandal (gents), chappal (gents), sandal (ladies), electric charges, gas charges (upto 100m3), kerosene oil, match box, petrol, diesel, telephone local call and bath soap.
(combining food and non-food items), the price increase was 7.7% as compared to October 2011. Average inflation in 2008-09 was around 17% as compared to 2007-08 that was reduced to 11% in 2011-12 when compared against 2010-11 which was 13.7 %. The price thus reduced in 2011-12 despite unprecedented floods of July/August 2011 that resulted in loss of agriculture produce and disrupted supply at a massive scale. In the current year, consistent drop inflation is witnessed as it has reduced to single digits in July, August, September and October at 9.6%, 9.1%, 8.8%, and 7.7%. On average in the first four months
of this year (July-October) inflation has been recorded at 8.8% as compared to 11.3% in the same period last year. In these four months food inflation was 7.3% as compared to 12.9% last year, while non-food inflation was 9.7% as compared to 10.3% in the same period last year. Similarly, sensitive price index (of 53 items) has reduced to 7.6% in the first four months of this year, as compared to 9.6% last year. The prices in the wholesale (measured through whole-price index (WPI)) have reduced from 17.8% last year to 7.6% in the first four months of this year. This demonstrates availability of ample supply of commodities available at the stage of wholesale, and warrants to further reduction in inflation in the coming months. The core-inflation is also witnessing reduction since July of this year as it was 11.3%, 10.8%, 10.4%, and 10.8% in July, August, September and October respectively. A comparison of 53 essential eating items, suggest that the number of items in which prices have decreased or remained same, have been much more than the items in which price increase has been witnessed. In September 2012, the inflation (CPI) in India was 9.7%, Bangladesh 7.4% and Sri Lanka 9.1%. He said that all developing countries that depend on imported oil, including Pakistan were facing price rise.
MFBs asked to expand access to financial services ISLAMABAD APP
Deputy Governor of the State Bank of Pakistan (SBP) Kazi Abdul Muktadir on Monday asked the microfinance banks (MFBs) to take advantage of a favourable market environment by investing in innovative technologies and products in order to grow their businesses and expand access to financial services in the country. Speaking as a chief guest at the commercial launch of Branchless Banking by Waseela Microfinance Bank here, the SBP Deputy Governor stressed upon SBP’s broader goal to provide inclusive financial services to the poor and low income groups. “I firmly believe that microfinance and branchless banking are complementary to each other, and together they will bring the advantages of inclusiveness, convenience, ubiquity, and efficiency as Pakistan offers the best regulatory framework and industry infrastructure for microfinance,” he added. Abdul Muktadir said that the World Bank’s Consultative Group to Assist the Poor (CGAP), in one of its studies had also recognized Pakistan as one of the fastest growing branchless banking markets in the world, and a laboratory of innovation.
Doc to inaugurate economists’ moot ISLAMABAD APP
Finance Minister Dr.Abdul Hafeez Shaikh will inaugurate the three-day 28th Annual General Meeting and Conference of the Pakistan Society of Development Economists (PSDE) here at local Hotel today. According to a statement of the PSDE issued here on Monday, its annual moot is expected attendance of more than 500 economists, researchers, policy-makers and students of economics, senior government officials. The theme of this year’s meeting is “Economic Reforms for Productivity, Innovation and Growth”. The meeting will be inaugurated by Dr. Abdul Hafeez Shaikh, Federal Minster for Finance and highlight the economic vision of present government for the welfare of the people and prosperity of the country. Dr Rashid Amjad, ViceChancellor Pakistan Society of Development Economics (PIDE) and President, PSDE, will give the Presidential Address on the conference theme.
President fills a prescription for pharma industry Urges it to strive for excellence ISLAMABAD APP
President Asif Ali Zardari on Monday urged the national pharmaceutical industry to acquire international standards of quality control and make the label “Made in Pakistan” a symbol of pride for the country. Addressing a signing ceremony here at the Aiwan-e-Sadr to make the Drug Regulatory Authority Bill into a law, the President said that the act would ensure availability of safe and quality medical services at affordable prices to the people. He said that the law would help prevent the sale of fake, sub-standard and non-registered medicines and stop hoarding by creating an autonomous drug regulatory authority. The President gave his assent to the bill at the special ceremony, which was attended among others by Minister for National Regulations and Services Dr. Firdous Ashiq Awan, federal cabinet members, parliamentarians and representatives of the pharmaceutical companies. President Zardari said that Shaheed Zulfikar Ali Bhutto promulgated the first Drug Act of 1976. The credit goes to this
coalition government to establish for first time the Drug Regulatory Authority (DRA) in the country like the developed countries, he added. He said that the DRA would ensure protection of the interests of the people and the pharma industry. He said that the industry had grown over the past decades and now it was time to take the next step in the technology. The President stressed the need to broaden base for research and development and said that bio-technology was the engine of growth of the present century. “Our pharma industry needs to harness this technology and the academia needs to work closely with the industry to ensure timely infusion of related knowledge.” He stressed on the pharma industry to focus on acquiring international standards of quality control and called for adopting corporate culture within the regulatory system. The President called for expanding the scope of pharma exports and making new advancements in the area. He congratulated the Parliament and all political parties and said that the unanimous adoption of the Drug Regulatory Authority Bill was a sign of wisdom and maturity of the Parliament and all political
parties. He said that all the provincial assemblies and governments deserved to be commended for agreeing to permit the federation make the important legislation for the benefit of all. It is a measure of their political maturity, he added. The President said with the availability of cheap labour, necessary skills and other opportunities, there was no reason Pakistan’s pharmaceutical companies could not make their presence felt in the international markets. He complimented Dr. Firdous Ashiq Awan and her team, especially Dr. Suhail Siddiqui, for their commitment and untiring efforts towards materializing such an important legislation. The President also distributed certificates among various pharmaceutical companies that achieved distinction in various pharma related fields. Later briefing the media persons, spokesperson to the President Senator Farhatullah Babar said that a conscious and deliberate effort was made during the past several months to involve all the stakeholders in the finalization of the Drug Regulation Authority Bill. He said that the Pharmaceutical Association, the Pharma Bureau and the Pakistan Chemists and Druggists Association in ad-
dition to the standing committees of the National Assembly and Senate were included in the broad-based consultation and dialogue process to arrive at a consensus. Minister for National Regulations and Services Dr. Firdous Ashiq Awan, in her speech, said that the DRA had been designed along the lines of such bodies in advanced countries like the US and Canada to protect the interests of the patients, the pharma industry and officials working in the authority. She said that the pharma industry in the country had grown over the past decades,
from just a few manufacturing units at the time of independence, to over 600 well developed units. She said that the PPP leadership supported the underpriveliged by bridging the gap between the rich and the poor and provision of quality drugs at affordable rates was part of the manifesto of the PPP in the 2008 general election. Dr Firdous said that the government was working on a strategy for the Drug Pricing Policy, the Policy of Import and Export of Drugs, and low markup on export of drugs financing.