Financial Risk Manager: Economic and Business Updates

Economic and Business Updates - February 16 to March 01, 2009
Monday, March 2, 2009

Foreign exchange reserves fell by $210 million to $10,166 million in the week that ended on Feb 21, the central bank reveals.
The Royal Bank of Scotland announces that the new owner of the RBS is being explored in Pakistan. The RBS is the hardest hit bank in Europe.
The Asian Development Bank will provide $500 million ahead of the next budget and has expressed its willingness to double its annual assistance to $3 billion as requested by Pakistan. It also agreed in principle to finance the Bhasha-Diamer dam project.

The government will be providing Rs30 million subsidy on imported wheat by the end of June in an effort to give some relief to consumers.

The State Bank announces extension of three per cent markup subsidy for the spinning sector by one year to facilitate the textile sector.

The International Monetary Fund has scaled down Pakistan’s growth rate at 2.5 per cent and tax revenue at Rs1300 billion, Advisor to PM on Finance Shaukat Tarin discloses after discussions with the IMF.

The State Bank of Pakistan announces operational mechanism for microfinance credit guarantee facility.

Pakistan may get a loan of $948 million from China, Saudi Fund for development and Islamic Development Bank to meet 58 per cent of the total cost of the 969 MW Neelum-Jhelum hydropower projects.

Cotton ginners ask the Federal Board of Revenue to exempt ginning factories from the status of withholding agents and demand zero rating facility on composite units of these factories.

More of the 600 private companies in 30 different sectors of the economy attract $1.58 billion during first seven months (July-January) of the current fiscal year, Boi sources disclose.

The Federal Board of Revenue may discontinue the existing policy of extending special tax zero rating facility to different manufacturers on consumption of electricity and natural gas.

The Sindh Food Department finalises arrangements to begin procurement of 1.2 metric tones of wheat by March 1, 2009 say sources.

Disbursement of credit to the agriculture sector by commercial and specialized banks increases by 11.48 per cent to Rs116.77 billion during July-January period of the current fiscal against Rs104.775 billion during the same period last fiscal, depicting an increase of Rs12.022 billion.

Allocation for projects under public sector development programmed during the second half (January-June) of the current financial year ay further be slashed to the tune of Rs70 billion, it is learnt.

The finance ministry allocates Rs4 billion for disbursement towards research and development outstanding claims for a period from June 26 to 30, 2008.