Nationwide Updates

► Pakistan mulls offers in 250,000T wheat tender

Pakistan’s state trading agency has received offers of between $399.45 and $520.83 per tonne, cost and freight included, in its tender to buy 250,000 tonnes of wheat over the weekend, European traders said on Monday. No official decisions ha been made but Pakistan was interested in the cheapest offer of $399.45 made by a Russian company for 100,000 tonnes C&F for shipment in July, the traders said. “What they want is shipments in July,” said one of the traders who had heard of requests from Pakistan to seek 150,000 extra tonnes of wheat for July shipment at the price levels offered by the Russian firm.  (The News)

► Pakistan buys 300,000T gas oil

Pakistan State Oil (PSO) bought via tender at least 300,000 tonnes of gas oil for June to October delivery at premiums of $7.60 to $9.30 a barrel to Middle East quotes, a trade source said on Monday. The six cargoes of 0.5 per cent sulphur gas oil, bought on a cost-and-freight (C&F) basis to Port Qasim or Keamari, will be delivered between second-half June and September. PSO has the option to buy an additional 150,000 tonnes of gas oil for July-October delivery, but it was not immediately clear how much of that volume had been secured, the source said. The state oil firm had sought 350,000 tonnes, or seven cargoes of same-grade gas oil, for May to July supplies.  (The News)

► Post-Budget explanations fail to answer concerns

Federal Finance Minister Naveed Qamar had the challenging task of defending the budget for fiscal year 2008-09, which remains ominously vague on details of revenue sources as well as the rupee value used to determine the cost of critical imports, including that of oil whose international price has continued to witness a volatile trend for about a year now. The fact that he failed to ease concerns on these issues during the traditional post-budget press conference is more indicative of the budget being considered as a work in progress rather than a one year economic treatise of the government.  (Business Recorder)

► Another opportunity goes waste

PAKISTAN in 1947 was a stunningly different place from the country we know now, so different that most of today’s young people would have trouble imagining it. The size, structure and potential of the economy are much different than was the case at the time of the country’s birth. Pakistan’s economy, looked at in terms of its performance over the 61-year period since the country’s birth, has done well. Its GDP has increased at the annual average rate of 4.4 per cent with the result that the economy now is 18 times larger than what it was in 1947.  (Dawn)

► ‘Parallel economy a threat to welfare plans’

The country’s black economy is estimated to have grown to be half as big as the formal economy, which yields a GDP of $166 billion. Sources told Dawn on Monday that the problem had reached such proportions as could upset public welfare plans. The parallel black economy of $83 billion could yield the national exchequer eight billion dollars if taxed even at a rate of 10 per cent. “These are very conservative estimates. The fact of the matter is that black economy could be much bigger,” said an official dealing with economic affairs.  (Dawn)

► $6 billion remitted in eleven months

Overseas Pakistanis remitted about $6 billion during the first eleven months (July-May) of the current fiscal year, showing an increase of 18.3 per cent over the same period last year. The State Bank of Pakistan on Monday reported that remittances surged by $915.7 million at $5.903 billion during the period under review. The monthly average remittances for the period came to $536.71 million as compared to $453.46 million in the corresponding period last year. Pakistani workers remitted $584.75 million in May 2008, up $46.77 million or 8.69 per cent over $537.98 million sent in May 2007.  (Dawn)

► New oil pricing mechanism to cut OMCs, refineries profits

Economic Coordination Committee (ECC) of the Cabinet in its next meeting will review the oil pricing mechanism to reduce the profit margins of oil marketing companies (OMC), refineries and inland freight margins. This would help reduce the taxation burden on consumers as well as block the undue gains being enjoyed by such companies on the expense of national exchequer, Farrukh Qayum, secretary Ministry of Finance told Senate Standing Committee on Finance and Revenues Monday. The profit margins were fixed when the oil prices were low and the gains of said companies were lower also on lower side.  (Daily Times)

► Turkish businessmen invited to invest in Pakistan  

A ten member delegation of Karachi Chamber of Commerce and Industry (KCCI) was warmly welcomed by the MUSIAD, the Independent Industrialists and Businessmen's Association of Turkey, Istanbul Chamber of Commerce and Istanbul Chamber of Industry on Monday at Turkey. During meeting with Musiad, it was discussed that how business from Organisation of Islamic Conference (OIC) member countries can collaborate with Musiad to invest in the emerging Turkish market and leverage its experience and networks to expand into the European or Central Asian markets.  (Business Recorder)

► Moody's report on Pakistan investment clime

Moody's Report on Friday, June 13, on Pakistan's chances to attract or retain foreign investments being dim, comes as no surprise. The conditions here hardly evoke confidence in the government's ability to control events that are externally generated, by themselves. All countries on earth, including the oil producers, are feeling the pinch of oil price surge, mounting inflation, weakening US dollar, and looming recession. It will be foolish to expect Pakistan to remain immune to these external conflagrations, leave aside the domestic problems. How outsiders feel about it is probably more subdued than the outbursts on the domestic fronts.  (Business Recorder)

► Seeking withdrawal of subsidies: World Bank and IMF set December 31 deadline

The World Bank and the International Monetary Fund (IMF) have set December 31, 2008 deadline for Pakistan to withdraw subsidies on oil gas and electricity. Sources said the World Bank and the IMF missions, which visited Pakistan last month for getting briefing from the officials on Budget 2008-09, had conveyed the officials their demand in black and white. The missions of these two key donors were of the view that subsidy on these products was major reason of distortion in country''s economy and the government needed to take corrective measures to get out of the worsening crisis.  (Business Recorder)