Nationwide Updates

► Govt planning major overhauling in TDAP

The government plans to undertake major overhauling in Trade Development Authority of Pakistan (TDAP), Daily Times learnt reliably Monday. Informed sources disclosed that under this plan the Executive Directors (EDs) hired from private sector some two and half years back would be laid off. “Ministry of Commerce is presently working on this plan and it would be materialised soon”, sources said. Sources said that since the approval for appointment of these EDs was not taken from Finance Division, the budget for new financial year has no budgetary provision for the salaries of these EDs.  (Daily Times)

► President stresses market access for Pakistani products in US  

A US congressional delegation on Monday discussed bilateral relations, Pakistan-US counter-terrorism co-operation and regional situation with President Pervez Musharraf in Rawalpindi. President Musharraf underlined the importance Pakistan attached to its relations with the US. He reiterated Pakistan's firm resolve to fighting terrorism and extremism. In this regard, the President highlighted government's comprehensive, multi-pronged strategy combining political, military and socio-economic development measures.  (Business Recorder)

► Pakistan in need of increased economic aid

Prime Minister Syed Yousaf Raza Gilani has said it is often not realised that one incident of terrorism in Pakistan leads to flight of foreign capital from the country besides discouraging the flow of foreign investment. Pakistan is in need of increased economic assistance not only to stabilise democracy but also to fulfil our promise of providing better life to the people, he further said. He made these remarks while talking to Richard Boucher, US Assistant Secretary of State, who called on him at Prime Minister's House here on Monday morning. Gillani said that terrorism is a global phenomenon.  (Business Recorder)

► Budget 2008-09 reflective of party interest

The rulers of Pakistan, whether they are elected or selected or usurpers, all seemed to have a consistent policy to give priority to protect their party interest over the national interest. The Federal Budget 2008-09 is reflective of this approach of the present rules towards economics issues of the country. Although Economic Survey 2007-08 itself presented a dismal picture of the performance of the Pakistani economy for the fiscal year 2008-09, but it appears that the budget authors have done little for the revival of the ailing economy of the country in the budget document.  (Business Recorder)

► Businessmen criticise govt over increase in POL and gas prices

Business community has expressed its deep concerns over the frequent increase in petroleum and gas prices and said it is hampering industry’s progress. Industry people, decrying over the prices of gas and petroleum products, said that it would not only spike the cost of production but also wreak havoc on the poor strata of the society. Gas is a major component in the production of the industrial sector as most of the energy consumed by the sector is generated, by the captive power plants, through gas and it would particularly hurt the exports by making them uncompetitive.  (Daily Times)

► Oil and gas prices hike to push inflation to 20 percent: analysts

The increase in oil and gas prices, along with one percent hike in general sales tax (GST), will push inflation up to around 20 percent as the steps taken by the government have sent alarming signals for all sectors of economy. These harsh steps taken by a 'popular' government is a gift to the people, which will further snatch their purchasing power with the beginning of new fiscal year from Tuesday, July 1. "The beginning of the new fiscal year is not a good omen, as across-the-board increase in energy prices including gas and petroleum products, and electricity tariff in the offing, is definitely likely to hit the poor hard.   (Business Recorder)

► Foreign exchange debacle and the energy crunch  

The world is experiencing an economic crisis, which has no precedent in history for its multi-faceted complication. There are so many factors responsible for the situation that it is impossible to pinpoint any particular one as the root-cause, but four features stand out as the prime suspects: 1) Falling value of US dollar and several other currencies, 2) The rising cost of energy, 3) High economic growth in China and India, and 4) Growing world population (fast approaching 7 billion mark). These factors give rise to others in a cause and effect sequence, which, taken together.  (Business Recorder)

► Stock market bail-out under the auspices of SECP

The Securities and Exchange Commission of Pakistan took emergency measures last week to provide some cooling period to investors by suddenly revising the security-wise circuits and introduced new risk management measures by lowering the lower circuit breakers ceiling from five percent to one percent and increasing the upper circuit breakers by extending it from five percent to ten percent. The SECP also banned blank selling for thirty days for the month of July future contracts. It also allowed acceptance of bank guarantees instead of cash margins with immediate effect starting from June 24th 2008.  (Business Recorder)

► DAP price should not exceed Rs 3,000/50 kg’

A high level meeting here Monday at Ministry of Food, Agriculture and Livestock discussed the modalities and mechanism of provision of subsidies on different food items and agreed that the price of DAP should not exceed Rs 3,000 per 50 kg bag.  Official, who attend the meeting, told Daily Times that participants of the meeting also agreed to ensure the smooth supply of fertilizer including urea, DAP and others in the local market. He said the price of DAP has reached to a record high level and has crossed the figure of Rs 4,000 per 50 kg bag. However, keeping in view the volatile food security situation across the world.  (Daily Times)