Nationwide Updates

► Pakistan seeks market access to G-12 states: Industrial goods

Pakistan has joined the G-12, comprising the US, EU, Japan, China, Australia, Canada, Brazil, India, Mexico, and South Africa, in a bid to seek maximum market access for industrial goods, particularly textile and clothing, under the current Doha Development Round. Pakistan’s inclusion in the group is very significant,” said a senior official in the Commerce Ministry on Thursday, adding after making a progress in the negotiations on non-agriculture market access by the group, World Trade Organisation director-general has announced the holding of seventh ministerial meeting on July 21 in Geneva.  (Dawn)

► Change in shipment schedule delays exports

Shipping lines have unilaterally increased their weekly calling time at the ports to two weeks, which is causing long delays in shipment of export consignments, exporters complained. According to them the lines calling at Qasim International Container Terminal have suddenly changed their weekly schedule for loading export containers. As a result of this unilateral decision a large number of export containers are presently stuck at the terminal creating congestion like situation. Saleem Shahzad, vice-chairman Pakistan Readymade Garments Manufacturers.  (Dawn)

► Govt to meet 0.24m tractors shortfall thru imports

The proposed Benazir Tractor Scheme would help the government to meet tractors availability shortfall of 240,000 annually and it would promote mechanization farming in the country.  The government is planning to launch Benazir Tractor Scheme to provide tractors to the farming community on low and easy instalments so that the scheme may mostly benefit small farmers. Senior official in the ministry of Food, Agriculture and Livestock Thursday told Daily Times country needed at least 70,000 new tractors per month for boosting agriculture production.  (Daily Times)

► SBP exempts more items from L/C margin

The State Bank of Pakistan on Thursday further extended the list of imported items exempted from 35 percent Letter of Credit (L/C) margin. The central bank has decided to extend the list of exempted items requiring no cash margin on import LCs on the request of importers and industrialist. In this regard, the SBP has issued a BPRD Circular Letter No 14, which goes into effect immediately. On Saturday, the SBP had waived requirement of 35 percent cash margin over 135 essential items with a view to facilitating the trade and industry.  (Business Recorder)

► Services trade deficit crosses $6 billion  

Pakistan's services trade deficit has crossed 6 billion dollars mark for the first time in the history of the country, up by 43 percent during the current fiscal year as compared to same period of last fiscal year mainly due to rising imports and decline in the export of services. Despite the government efforts, services exports are rapidly declining, while the imports are increasing constantly during the current fiscal year and it is expected that services deficit would reach nearly seven billion dollars in FY08. The State Bank of Pakistan statistics show that overall service sector exports stood at 2.926 billion dollars against imports.  (Business Recorder)

► Oil prices cross $140

Oil prices crossed 140 dollars a barrel for the first time in New York and London on Thursday amid a declining dollar and after OPEC warned prices could hit 170 dollars this year. New York’s main oil futures contract, light sweet crude for August delivery, shot up 5.50 dollars to trade as high as 140.05 dollars per barrel. In London, Brent North Sea crude for August jumped 6.05 dollars to 140.38 dollars. The price of crude oil shot up on the new dollar weakness, which makes the dollar-denominated commodity cheaper for buyers using stronger currencies.  (Dawn)

► PC board approves privatisation programme 2008-09

In order to make the Privatisation Policy pro-workers, the workers of public sector entities will be given 10 per cent shares of their respective entities. Syed Naveed Qamar Federal Minister for Privatisation, Investment, Finance, Revenues & Economic Affairs announced while chairing a meeting of the Board of Privatisation Commission on Thursday. Syed Naveed Qamar who is also chairman of the Privatisation Commission (PC) directed the PC that this decision should be implemented as soon as possible. He also formed a Committee to workout the modalities for the transfer of shares to the workers of State Owned Entities (SOEs).  .  (The News)

► Italian auto giant to manufacture bikes in Pakistan 

A leading European company has signed a deal with a local entrepreneur to produce 125cc Euro-II motorcycles in the country, challenging the monopoly of Japanese and Chinese bike manufacturers. “Italian auto giant Piaggio has decided to introduce European automobile technology in Pakistan,” said the company’s Senior Vice President Ricardo Mastronardi after signing of a memorandum of understanding between Piaggio and HKF Engineering at the Lahore Chamber of Commerce & Industry. “Piaggio is one of the leading motorcycle manufacturers in the world and the first two-wheeler scooter in the world .”  .  (The News)

► Pakistan seeks $125m Saudi credit for fertiliser

Pakistan government is negotiating with Saudi authorities for reviving another credit facility of $125 million for fertiliser import, The News has learnt. A team of the Economic Affairs Division (EAD) is working out a strategy for the revival of Saudi credit facility for the import of nitrogenous fertiliser (urea), official sources of the EAD told this correspondent. Pakistan nearly availed the existing Saudi credit facility of $133 million, which the kingdom pledged after the devastating earthquake in 2005 and Pakistan imported urea fertiliser as the country faced urea deficit in the last couple of years. Prime Minister Syed Yousuf Raza Gilani in a meeting with the King of Saudi Arabia in the first week of June.  (The News)