PRO 16-10-2012_Layout 1 10/16/2012 12:12 AM Page 1
Tuesday, 16 October, 2012
AGRICULTURAL REMEDIES
Hafeez calls for prudence Prudent policies help produce surplus agriculture yield: Dr Hafeez Shaikh ISLAMABAD
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APP
EDERAL Minister for Finance Dr. Abdul Hafeez Shaikh said that owing to prudent policies of the government, the performance of the agriculture has enhanced as surplus crop yield has been recorded this year. “This year we have surplus wheat, sugar and cot-
ton crop because of democratic government’s good policies”, the Finance Minister said while meeting with Haruhiko Kuroda, President Asian Development Bank (ADB) in Tokoyo. According to press statement issued by the Finance Ministry here, Shaikh said that despite a series of natural calamities, Pakistan has been able to raise its agriculture produce because of good agricultural policies. This has also contributed in well-being of the people in rural areas, the Finance Minister remarked.
Asian markets slip, China growth data in focus
HONG KONG, AFP
Asian markets fell Monday following a soft lead from Wall Street, while better-than-expected Chinese trade data was unable to lift spirits as dealers await growth figures from Beijing later in the week. With the corporate earnings season under way there is also nervousness in global bourses, with many investors concerned opting to stay away for now. Tokyo was flat by the break, Hong Kong eased 0.14 percent, Shanghai was 0.54 percent lower, Seoul lost 0.34 percent and Sydney was off 0.15 percent. China said on Saturday that exports rose 9.9 percent year on year in September to a record monthly high, a welcome bounce from the recent sharp slowdown in the country’s key economic driver. The national customs bureau also said the trade surplus, a source of friction with China’s trading partners, widened to $27.7 billion for the month, up from $26.7 billion in August. The increase beat predictions of a 5.0 percent rise in exports, but there are still concerns over the future because of weakness in China’s main markets in the United States and Europe. On Monday another batch of figures showed inflation at 1.9 percent last month, slightly softer than 2.0 percent in August but in line with expectations. But the main focus is on Thursday’s release of gross domestic product data for the three months to the end of September, which will provide a better idea of the state of the world’s number two economy and main regional growth driver. “These days there seems to be a lot of attention (paid) to one bad number and not a lot of attention (paid) to one good number,” said Joe
Bracken, head of macro strategies at BT Investment Management in Sydney. But he told Dow Jones Newswires traders “are very reluctant to commit to anything unless they see a series of good numbers”. Wall Street ended last week on a damp note as traders fret about the corporate outlook. The Dow ended flat, the broad-based S&P 500 lost 0.30 percent and the Nasdaq added 0.17 percent. On currency markets the eurozone debt crisis continued to weigh on the single currency. The euro bought $1.2905 and 101.25 yen in early trade, compared with $1.2958 and 101.60 yen in New York late Friday. The dollar was at 78.46 yen against 78.39 yen in US trade. In Hong Kong telecoms equipment maker ZTE Corp. slumped 16.6 percent after warning of a net loss in the third quarter that would wipe out its profit for the first half of the year. The warning also comes after a US congressional probe said the firm and another Chinese firm, Huawei, pose a security threat to the country and should be barred from US contracts and acquisitions. And in Tokyo, mobile carrier Softbank slumped almost six percent on reports it could imminently announce a deal to buy US competitor Sprint Nextel for $20 billion, which would be one of Japan’s biggest ever overseas acquisitions. Softbank had already slumped 17 percent on the initial news of the buyout plan. Oil prices fell, with New York’s main contract, light sweet crude for delivery in November shedding 72 cents to $91.14 a barrel and Brent North Sea crude for November delivery falling 72 cents to $113.90. Gold was at $1,743.60 at 0300 GMT compared with $1,767.80 late on Friday.
Highlighting the economic situation in Pakistan, the minister said that measures are being taken to bring macroeconomic stability in the country. He said that the government tried to remain fiscally austere which can help it bring stability in economy. He said that despite various constraints, the government is trying to mobilize the resources adding in the last two years the government has doubled the tax collection. This year the growth rate is expected to be around 4% and the government has been successful in bringing the inflation to a single digit, the Minister added. On the occasion, the ADB President appreciated the Pakistan government’s efforts for maintaining macroeconomic stability in the country saying “the general economic situation in Pakistan is good. The President of the ADB reassured the construction of Bhasha Dam Project, saying that ADB will take a first step by moving the technical assistance proposal to the International Monetary Fund (IMF) Board. The project will help reduce the energy mix prices of the electricity, he maintained. Dr. Abdul Hafeez Shaikh also held meeting with his Saudi counterpart at the sidelines of 2012 annual meeting of World Bank and IMF at Tokyo. Both the ministers reviewed the bilateral economic relations during which Dr. Shaikh thanked the Saudi government for the grant of US $ 100 mil-
lion. The Saudi Finance Minister assured the finance minister of full support and reiterated the commitment of his government that its financial aid would continue for the ongoing projects in Pakistan.
What’s the deal with textile? Senate body seeks report on issues of textile industry ISLAMABAD APP
The Sub-committee of Senate Standing Committee on Textile Industry here on Monday directed the Ministry of Textile Industry (MinTex) for submitting a detailed report on the issues and challenges being faced by the local textile industry. The committee met here with Senator Mohsin Khan Leghari in chair also convened the ministry of industries and the provincial departments concerned with textile industry to submit report in this regard in next meeting. Speaking in the meeting Senator Osman Saifullah Khan said “We should be educated on the issues of textile industry, in such way the legislation should be done to resolve the issues of sector. Briefing the meeting, Joint Secretary MinTex said that the textile sector was playing pivotal role in the economic development and absorbing the skilled and un-skilled labour force in the country. He said that the textile export comprising 57 per cent of the total exports from the country where as it was providing employment opportunities for 39 per cent labour force in the country. Out of the total financing made by the local banks for manufacturing sector, the share of the textile sector was 41 per cent, adding that the exports of cotton has witnessed a rise of 37.27 per cent during JulyMay 2011-12 over the same period of the last year. He said that Pakistan was the 15th largest cotton producer in the world while it was contributing only 2 percent in global cotton export which was at the lower level due to inadequate funding for textile sector. A total of Rs.24.75 billion were allocated against the approved financing plan of Rs. 123 billion for 2009-12 which is around 20 per cent only, the committee was told. The committee was told that there was not research and development activities in the textile sector which was a major impediments it the progress of the textile sector. The officials of the MinTex suggested for introducing the crop insurance policy to boost the agri-sector as well as increasing the crop out put in the country. The meeting was attended by Senator Osman Saifullah Khan and Senator Amar Jeet.
Malaysian Chamber sees investment potential in textile sector ISLAMABAD ONLINE
Malay Chamber of Commerce Malaysia (DPMM) has urged Malaysian entrepreneurs and businessmen to explore what it sees as “vast investment opportunities” in the surgical instruments, textile and leather sectors in Pakistan. “The chamber foresees a huge investment potential in Pakistan for Malaysian entrepreneurs to be explored in some sectors such as textiles, surgical instruments and halal leather goods,” said DPMM Deputy President Datuk Mohamad Alayuddin Hasan in an interview with mass-circulated Malaysian newspaper Berita Harian after his return from Karachi where he attended the Expo Pakistan 2012 as part of a 57-member Malaysian delegation of businessmen and entrepreneurs. Datuk Mohamad Alayuddin said Pakistani textile products seemed like a very relevant item to be brought into the Malaysian market as they were of high quality and offered at a much lower price as compared to other textile-producing countries. “It’s not just limited to one type of textile, but it also includes all other products including those for home use, hotel use and can also be bought in bulk,” he said. He suggested that Malaysian entrepreneurs take this opportunity to become agents for the sale of surgical instruments manufactured in Pakistan. “The manufactured equipment are of first-class quality and are comparable to German products,” he said, adding Pakistani companies had also agreed to establish a consortium which would soon appoint representatives in Malaysia to supply surgical instruments manufactured in Pakistan to the rest of Southeast Asia.
Bangladesh vying to fit into the pipeline Bangladesh wants to join TAPI project: Turkmenistan NEW DELHI: Bangladesh is willing to join the proposed Turkmenistan-Afghanistan-PakistanIndia (TAPI) pipeline project. “There was a request from Bangladesh to join the project. We require official note for this which will be considered by all the four governments of TAPI project,” Kakageldy Abdullaev, acting Minister of Oil and Gas, Minerals of Turkmenistan, said at Petrotech 2012, reported The Hindu. Asked about pricing of the gas to be wheeled through TAPI pipeline, he said, “I can only say that the price of gas in the project will be beneficial for everybody.” ONLINE