Nationwide Updates

► WTO trade talks face crucial two weeks

Trade negotiators are entering a critical period in their efforts to wrap up a new world trade agreement by the end of the year. At stake is a pact to boost trade and growth in a world economy buffeted by financial crisis, as markets open for businesses from food to finance in rich and poor countries. But optimism at the start of the year that a deal could be done soon has faded, as the talks have bogged down in technical details and recriminations among rich and poor countries about who should show the greatest ambition in lowering barriers.  (Daily Times)

► Bright prospects for Basmati exports

Punjab Minister for Agriculture Khurshid Zaman Qureshi terming Pakistan’s Super Basmati Rice a unique commodity by virtue of its superb grain quality, has said that the World Trade Organisation (WTO) deserves special attention of all the stakeholders, in designing appropriate agricultural and trade policies to comply with the new trade regime. He expressed these views while speaking at a one-day capacity building workshop on “International Standards & Quality Requirements for Rice Production & Export”, jointly organised by the Punjab Agriculture Department and the Lahore Chamber of Commerce & Industry on Tuesday.  (The News)

► ‘PPP to inherit a distorted economy’

Pakistan Peoples Party expressed concern at deteriorating trade indicators as the country struggles with the highest trade deficit in its history, just when the new PPP-led government is set to take office this month. The trade deficit soared to $12.433 billion in the first eight months of the current fiscal year, surpassing the trade gap target of $12bn (export target of $19.2 billion against calculated imports at $32 billion) set for the financial year 2007-08.  (Daily Times)

► Shamshad calls for structural reforms to address twin deficits

Dr Shamshad Akhtar, Governor State Bank of Pakistan (SBP) has stressed the need for structural reforms to address fiscal and external account deficits in the context of changing global economic environment. Delivering her keynote address on ‘Policy Tradeoffs and Structural Issues’ on the occasion of Golden Jubilee Ceremony of the Pakistan Institute of Development Economics at a local hotel in Islamabad on Tuesday, she called for increasing national savings.  (The News)

► Rising oil prices pose serious problems for new govt

Despite an increase in oil prices by caretaker government, new government would still have to face big challenge of paying huge financial burden of differential claims to the Oil Marketing Companies (OMCs) that are pending, sources told Daily Times on Tuesday. Sources said that OMCs are running their operations in difficult situation, as government is still to pay around Rs 30 billion differential claims to OMCs. Sources further said that oil prices in the international market hit a record above $109 per barrel.  (Daily Times)

► February inflation climbs by 11.2pc

Inflation spiked in February to its highest level since July 2007 on higher food and fuel prices, data showed on Tuesday. The inflation measured through CPI witnessed an increase of 11.25 per cent in February over the same month last year, says the data issued by the Federal Bureau of Statistics (FBS) on Tuesday.The government had projected an annual 6.5 per cent inflation target. The inflation in the first eight months reached 8.90 per cent this year, up from 8.04pc during the same period last year.  (Dawn)

► Pakistan to auction oil and gas fields

Amidst stagnant production and rising demand of energy, Pakistan has decided to auction fields for oil and gas exploration under a new petroleum policy, a senior petroleum ministry official told The News. Incentives offered in Petroleum Exploration and Production Policy 2007 will start having an impact on the country’s energy scene once bids are invited for new blocks in the coming months, Shaukat Durrani, Additional Secretary Ministry of Petroleum said. “Outcome of the policy would be seen once it is implemented,”.  (The News)

► Venture capital no more a distant dream for Pakistani companies

At a time when the country is passing through one of the most turbulent times in its history, it is no ordinary development that a Pakistani Internet company has attracted investment from two of the world’s top 25 venture capital funds. On January 14 2008, amidst political unrest and bomb blasts, Naseeb Networks secured a multi-million dollar venture capital investment from ePlanet Ventures and Draper Fisher Jurvetson (DFJ), according to its Chairman and CEO, Monis Rahman. These two top Silicon Valley funds, which have invested for the first time in a Pakistani company.  (The News)

► Pakistan gets $300 million Saudi grant

Saudi Arabia has extended $300 million budgetary support for Pakistan to help it in easing the growing pressure on its economy. An official announcement made here on Monday said. "In a goodwill gesture for support for the people, Saudi Arabia has given a budgetary support grant of $300 million to Pakistan. The grant will help Pakistan bridge the fiscal gap in Pakistan that arose due to high global prices of oil and petroleum products."  (Business Recorder)

► Policy prescriptions by the IMF  

Although countries not utilising IMF resources are not bound by its advice, it continues to analyse the economies of its members periodically with a view to offering policy prescriptions on various issues as a part of its mandate. According to the latest report, the IMF wants the new government of Pakistan to bring agriculture and services sectors into the tax net and reduce exemptions in order to tide over financial difficulties of the country. Talking about the overall budgetary situation, it asserts that "fiscal effort should rely primarily on strengthening revenue mobilisation substantially to reduce deficit.  (Business Recorder)