Nationwide Updates

► WTO says no point in further talks on industrial products access  

The WTO's chief negotiator on freeing up access for industrial products said Monday he sees no point in further talks until member states are ready to compromise over tariffs and other key sticking points. The 152 members of the WTO need to "work among themselves to bridge their positions and until they do that, it is pointless to convene NAMA negotiating group sessions," ambassador Don Stephenson said. Industrial products come under the rubrique of "non-agricultural market access" (NAMA) as part of World Trade Organisation talks launched in 2001 on liberalising the global trading system.   (Daily Times)

► The real way to fight poverty

My friend Abid Hasan, the former operations adviser to the World Bank, has given a dire warning (in his piece published on these pages on May 24) that unless pro-poor expenditures are increased, the country will fall apart. We would do well to heed that warning. He then listed a number of surcharges that should increase our taxation. The additional taxation is to be used for increasing pro-poor expenditures. A very nice well-meaning, 'from the heart' proposal. He wants a year of the poor and how can I disagree. While I agree with him on making the policy pro-poor, I do not agree with the specifics of the proposal. Let me elaborate. His proposal calls for an increase in taxation in several areas.  (The News)

► Italy backsPakistan for FTA with EU

Italian Minister of State for Finance and Economic Affairs Giuseppe Vegas said here on Monday that his country supports Pakistan’s case for a Free Trade Agreement (FTA) with the European Union (EU). “The new government in Italy will continue collaboration for economic development of Pakistan,” the Italian Minister told Dawn on Monday. Pakistan’s economy, he said, was performing well and it had a bright future as its GDP had increased and there was a potential to sustain it. He said while terrorism was a worldwide threat and it might take a decade or more to tackle it, Pakistan was overall a good place to make investment in the Asian region.  (Dawn)

► Concern over allowing import of auto parts

The Pakistan Association of Auto-parts and Accessories Manufacturers (PAAPAM) has expressed serious concern over the Engineering Development Board’s decision allowing import of Euro-II-compliant auto parts without consulting local vendors. PAAPAM Chairman Malik M Aslam protested that the EDB hurriedly called a meeting of Technical Committee on May 28 without inviting major stakeholders which discussed the most important issue of allowing import of Euro-II-compliant auto parts by the Original Equipment Manufacturers (OEMS) at zero-rated duty. It was a unilateral decision by the EDB despite serious reservations and strong protest by the PAAPAM, he said,   (The News)

► Trade deficit may cross $20 billion this year

The country's trade deficit is likely to cross $20 billion mark, for the first time in Pakistan's history, this fiscal year, mainly due to sharp rise in imports low exports. Although the State Bank took some bold steps to bring down the increasing imports, analysts believe that these steps had been announced very late, when the imports and trade deficit had already breached all barriers. The State Bank of Pakistan imposed 35 percent margin on all import Letters of Credit (L/Cs), except oil and some food items from May 23, aimed to bring down imports and the rising trade deficit. Earlier, there was no percent margin on LC opening, and importers were importing goods over and above the requirement, putting extra burden on the national exchequer.  (Business Recorder)

► Why rapid growth is necessary 

FINDING the right way to bring a country out of economic, political and social backwardness and to help its people out of despair and poverty remains an enterprise that continues to engage many great minds. Over the last 60 years or so, starting from the time when millions of people in Asia and Africa were able to cast off the yoke of colonialism and take responsibility for their lives and for their future, development experts have continued to come up with recipes that would help release nations from poverty. Some countries, most notably those in East Asia, succeeded. Some failed and continue to fail. Most of those who are still struggling are in the region known as Sub-Saharan Africa.  (Dawn)

► What the State Bank says 

THE SBP’s third quarterly report for the outgoing fiscal on the state of the economy does not make us any wiser. Much of what it says is already known. Yet it does underline the serious challenges facing the economy, and suggests a few measures that are crucial in terms of heading off any further economic downturn. The SBP has knocked down the GDP growth estimate to 5.5-6.0 per cent — well below the original target of 7.2 per cent — from an earlier projection of 6.5-7.0 per cent in December owing to “broad deterioration in the key macroeconomic indicators due to a combination of adverse domestic (political volatility, energy crunch, price inflation, water shortage, etc)  (Dawn)

► No letup in food price hike

Retail prices of essential commodities including rice, pulses, wheat and sugar increased further during May. The wholesale rates of rice and sugar eased during the said month. Among pulses, masoor witnessed the steepest rise of Rs25 to hit Rs120 per kg in May compared to Rs95 per kg in April. Retailers informed that the rise was due to increase in wholesale rates. Moong and Mash (washed) gained Rs8 per kg each and were being sold at Rs58 per kg and Rs70 per kg respectively. Arhar remained stable at Rs82 per kg whereas gram pulse rose to Rs62 per kg during the month from Rs53 per kg earlier. All varieties of flour witnessed a sharp spiral during May, contributing significantly to the food inflation.  (The News)

► Pakistanis fail to exploit available resources

Economists point out that Pakistanis somehow fail to exploit available resources in the country. They said Pakistan is the largest producer of ghee in the world. The country stands second in chickpeas production, fourth in production of cotton, apricot and sugarcane, fifth in milk and onions, sixth in date palm, seventh in mango, eighth in tangerines, mandarin orange and rice, ninth in wheat and tenth in oranges.  Yet they said the country at one time or the other faces shortages, as the bureaucracy has no hold over hoarders, black marketers or smugglers. They said the dairy potential of the country remains unexploited as the planners promote higher growth by increasing the milch animals instead of making efforts to increase the productivity of livestock at par with developed countries.  (The News)

► R&D support for textile sector may be extended

The research and development support given to textile sector is likely to be extended for another year in the new budget. However, it would be linked with the volume of exports of an individual exporter rather than a fixed percentage being presently given to various categories, official sources disclosed on Monday. Sources said the new expected formula would allow exporters to get more research and development (R&D) on higher volume of exports and it would create a competition amongst exporters to increase overall exports of the country.  (Dawn)

► KCCI to hold 'My Karachi' exhibition from June 6

Prime Minister Syed Yousuf Raza Gilani is likely to inaugurate Karachi Chamber of Commerce and Industry (KCCI) annual exhibition "My Karachi" scheduled to be held from June 6 to 8 at Karachi Expo Centre. Only 5 days left in the inauguration of the exhibition but due to prime minister's important engagements in Islamabad it is yet not confirmed whether he will be available to inaugurate the exhibition or not The chamber has also made alternative arrangement considering Prime Minister's engagements Chief Minister Sindh Syed Qaim Ali Shah will inaugurate the exhibition.  (Business Recorder)