Financial Risk Manager: Economic and Business Updates

Economic and Business Updates - March 09 to March 15, 2009
Monday, March 16, 2009

Overseas Pakistanis continued to send higher remittances which reached $4.9 billion, an increase of 19 per cent during the first eight months of the current fiscal year.
Pakistan’s foreign exchange change reserves fell by $90 million to $10.05 billion in the week that ended on March 7, the State Ban sources say.
Exports have fallen to $1.27 billion i.e. by 17 percent during February 2009 as compared to $1.53 billion in the same month last year.
Another significant cut of up to 100 basis points in the Treasury bill is expected in the next auction, say market experts who are of the view that the policy interest rate will be slashed in the next monetary policy review in April.
Official figures released by the Federal Bureau of Statistics show that the inflation measured through the Consumer Price Index, Sensitive Price Index and Whole Sale Price Index have surged by 0.95, 0.85 and 0.66 percent respectively in February 2008-09 overall CPI inflation surge in 23.49 percent during July-February 2008-09 over the same period of last year.
The Customs Valuation announces cut in the Import Trade Price of secondary steel products by 24-30 percent due to declining price trend in the world market, sources say.
The consumers passion to buy new cars remains depressed during the last eight months as the overall car sales fell by 49 percent during July-February 2008-09 to 47,982 in the same period last year.
The Punjab Food Department decides to increase price of wheat issued to flour millers from government godowns in two steps following the start of wheat procurement in Sindh at Rs950 per 40kg.
The State Bank of Pakistan announces to finance import of secondhand plan and machinery under the long-term financing facility in order to facilitate the under-stressed industry and to increase industrial growth.
The Insurance business in the country declines by 30 percent due to slowing down of economic activities in the recent global recession.
The Federal Bureau of Revenue will charge 13 percent sales tax of the value on import of rapessed and sunflower seed by solvent extraction industries.
The Private Power and Infrastructure Board opens bids received to set up independent power producers on fast track basis, which will be finalized by the evaluation committee within 15 days.
The State Bank will provide a future cut in mark-up rate to exporters who achieved better than expected results.
The country misses the 14.1 million bales cotton production target for 2008-09 by some three million bales due to various factors including decline in the cultivated area, use of pirated Bt cotton seed and mealy bug attack on standing crop, reveal sources.