Financial Risk Manager: Economic and Business Updates

Economic and Business Updates - January 05 to 11, 2009
Monday, January 12, 2009

The government is to increase margins of oil marketing companies and petroleum dealers by 12.5 percent and 25 percent per liter respectively as both the stakeholder have given tough time to Islamabad after reduction in their profits.
The banking industry deposits witness a significant decline of Rs124 billion in the third quarter of 2008, despite relatively steep rise in weighted average return on deposits, say industry sources.
Banks approach the competition commission of Pakistan for condo nation of time period in filing of appeal against the commission’s order on imposition of penalty.
Global recession and emerging deflation in developed countries start affecting Pakistan’s exports, which are gradually declining since October. Though, exports of the country during the first five months (July-November, 2008) increased by 11.88 percent, trend shows the exports are sliding downwards.
In a policy shift, the government is to review the prices of petroleum products on a monthly basis, instead of fortnightly, aimed at bringing stability to the market and minimizing consumer’s problems, sources in the Finance Ministry disclose.
The Indian government imposes 12 percent cuties on cement import, which is aimed at curbing cement import from Pakistan, industry sources say.
Prime Minister Yousuf Raza Gilani directs the Ministry of Petroleum and Natural Resources to arrange uninterrupted supply of oil and gas to IPPs for optimal supply of power.
RICE exports cross record $1.18 billion mark in the first six months of the current fiscal year, says chairman of Rice Exports Association Abdur Rahim Janoo.
The Finance Ministry has achieved all IMF targets including two per cent fiscal deficit by end of December, 2008, and tax collection is likely to touch 10.5 percent of GDP as discussed and agreed, says adviser to PM on Finance Shaukat Tarin.
The Asian Development Bank underlines the need for improving international controls and internal audit in both Punjab health department and at district government level for improving transparency and accountability in the use of public resources and ensure that fund leakage in minimized.
The Utility Stores Corporation starts selling urea fertilizer to check black marketing and facilitate the growers and farmers community.
The Ministry of Industries is grilled by the Economic Coordination Committee of the Cabinet for seeking company specific incentives through revised letter of Intent (LOI) after federal Board of Revenue raised eyebrows on the issue, say official sources.
Finance Minister concedes that monetary overhanging from the unprecedented government borrowing from the State Bank of Pakistan for budgetary support will continue to frustrate the decline in imported inflation.
Phutti arrivals into ginneries rose by 6.91 percent at 9.745 million bales in the fortnight ended December 31, 2008 when compared with 9.115 million bales in the same period last year.
Source: Dawn - Economic and Business Review dated 12-01-2009

Labels: Economic and Business