► Food beyond the reach of the poor

It was a revealing experience. The village women were gathered to discuss the progress of their microfinance programme. They appeared inattentive to the remarks of their sponsor. They did not respond to the questions asked by him. Then the silence was broken and one of the women asked a question that appeared strange to the sponsor. “Sir what can we eat?” And another joined in, “rice is so expensive, dhal is Rs. 170 a kilo, vegetables are beyond our reach and we can’t even eat rice and pol sambol as coconuts are sixty rupees.” This is not what he came to discuss. He wanted to discuss the progress of their self-employment projects financed by his microfinance programme.  (Sunday Times,  Sri Lanka)

► Poverty & food crisis

IT was decided at a meeting of the ECC presided over by Prime Minister Gillani, to import 250,000 tons of wheat urgently and to constitute a committee which would launch a scheme enabling the poor to get essential food items on subsidy. While the decisions are welcome, the food crisis is too enormous to be tackled by routine measures alone. The price of wheat, which constitutes the staple diet in Pakistan, continues to rise steadily. The hike in the prices of fertilizer and diesel is bound to push up the price of the commodity further in days to come. What is more, the prices of a number of other essential food items have shot up steadily to levels never witnessed before.  (The Nation,  Pakistan)

► India unlikely to soften on farming in WTO talks

India is unlikely to soften its stance on agriculture at global trade talks and may even gamble on the negotiations stretching into next year when a new U.S. administration is in place, analysts say. India, a key player in World Trade Organisation (WTO) talks, does want a conclusion to the long-running talks, they said. But the world's 11th biggest food exporter, according to WTO figures, prefers no deal to one that neglects the needs of poor countries, in line with the development mandate of the talks built in at their launch in Doha in 2001, the analysts said.   (Economic Times,  India)

► India, US narrowing gaps on Doha Round, says Nath

India and the US are increasing their level of convergence on the contentious issues of farm subsidies and market access under the much-delayed Doha Round of negotiations for a global trade deal, said India's Commerce and Industry Minister Kamal Nath. "At this point of time compared to the last year there is much convergence... that really demonstrates the progress in the negotiations, he said, adding that as India engages with the global economy, it is essential that it has a rule based multilateral system.  (Economic Times,  India)

► South Asian economic integration urged

Saarc Chamber of Commerce and Industry President Tariq Sayeed has stressed the need for tangible business proposals for getting maximum benefits from economic cooperation in South Asia. “Tangible and productive business proposals are required to capitulate maximum benefits from Safta, which will inspire business communities in South Asia to actively participate in the economic integration of the region,” he said while addressing the inaugural session of a seminar on “Quantification of Benefits from Regional Cooperation in South Asia.”  (Dawn,  Pakistan)

► Asia’s inherent strength helps withstand turmoil

Dr Shamshad Akhtar, Governor State Bank of Pakistan (SBP) has said that Asia’s inherent strength and resilience allowed the region to withstand turmoil in the international financial markets but appropriate policy responses are critical to contain the impact of such external shocks.  She was delivering a lecture on ‘Asia: Impact of Recent Global Developments and Central Bankers’ Response’ in Madrid, Spain yesterday where she was invited by Emerging Markets Newspaper (EMN), a part of Euromoney Institutional Investor Plc, to deliver a keynote address.  (The News,  Pakistan)

► India’s FTA with EFTA nations to include IPRs

A free trade agreement is slated to be finalised between India and the European Free Trade Association (EFTA) by early 2009. The EFTA countries include Iceland, Liechtenstein, Norway and Switzerland. Apart from trade in industrial and agricultural goods and services, there would be strong focus on implementation of intellectual property rights regime. The EFTA countries and India had earlier set up a joint study group to move towards a broad-based trade and investment agreement. It was agreed in January, 2008 to initiate negotiation for a free trade agreement (FTA).  (Bilateral.Org)

► India, Canada to discuss FTA during Kamal Nath’s visit

India will hold discussion on Free Trade Agreement (FTA) with Canada during Union Commerce Minister Kamal Nath’s visit to that country next month. Indian High Commissioner to Canada R L Narayan announced this, saying that "this would be first high level discussion on this issue." He said that both countries had already concluded foreign investment protection and promotion agreement last summer. An expert committee of Canadian Council of Chief Executive Officers and CII, set up last year to evolve strategies to strengthen bilateral relations including free trade agreement.  (Bilateral.Org)

► Bilateral Investment Treaty can spur US-Pakistan economic ties: Negroponte

A top US diplomat has said the conclusion of a bilateral investment treaty with Pakistan would bolster economic and trade ties between the private sectors of the two countries. “One of the ideas we have been pursuing with the Government of Pakistan is a bilateral investment treaty, which we think, if concluded, could give a boost to our economic relationship and trade between our two countries,” Deputy Secretary of State John Negroponte said.  (Bilateral.Org)

► Sri Lanka to import cement from Pakistan  

Sri Lanka will import 10,000 metric tons of cement from Pakistan to meet its growing requirements. Trade and Consumer Affairs Minister, Bandula Gunawardena said a high cement demand has been created in the country with commencement of many construction projects, including buildings and bridges. He said that the consignment will arrive here early this month, which will be distributed by recently set up State Trading Co-operative Wholesale Company Ltd to consumers.  (Business Recorder,  Pakistan)

► Wheat-hungry Pakistan to export 50,000 tons to Kabul

Prime Minister Syed Yousuf Raza Gilani has asked the Ministry of Food and Agriculture to improve its working to ensure food security for masses, directing the law enforcement agencies to deal wheat smugglers with iron hands. Presiding over the meeting of the Economic Coordination Committee of Cabinet (ECC) here on Tuesday, Prime Minister took strong notice of the prevailing wheat situation in particular and other food items in general and ordered for more strict measures to ensure availability of foodstuff to the people at large.  (The Nation,  Pakistan)

► Early harvest pact Between Pak & Bangladesh sought

Pakistan has urged Bangladesh to conclude an early harvest agreement, as a fast-track prelude to a free trade agreement. “Pakistan proposed to Bangladesh the signing of an early harvest agreement to facilitate trade from both sides to benefit from FTA at an early time and boost the confidence of both governments in FTA negotiations,” an official said after a meeting between visiting Bangladeshi Adviser on Foreign Affairs Dr Iftekhar Ahmed Chowdhury and his Pakistani counterpart Shah Mehmood Qureshi.  (Dawn,  Pakistan) 

► India’s Baroda and Axis Banks’ eye Sri Lanka

The government is forging ahead with the Comprehensive Economic Partnership Agreement (CEPA) which will facilitate the entry here of two Indian banks - Bank of Baroda and Axis Bank, according to senior officials at the Central Bank. “Right now we are still reviewing the applications by these two banks, but we are also waiting for the CEPA to go through, because that will make it easier,” a Central Bank official told The Sunday Times FT. According to banking industry sources, Axis Bank, formerly UTI Bank, had applied to start operations here before ICICI Bank did. “  (Bilateral.Org)

► Bangladesh bans export of non-aromatic rice for six months

The Bangladesh caretaker government Tuesday imposed ban on export of rice for six months except aromatic varieties to lower prices of rice in the local market, said a senior official. "Export of all kinds of rice except aromatic varieties have been banned today," a spokesman of the Commerce Ministry said Tuesday. The ban came after Bangladesh's Export Promotion Bureau (EPB) revealed last week that a group of exporters have cashed in on the government's free rice export policy by shipping in record amount of the staple this fiscal year (July 2007-June 2008) despite scarcity at home.  (English People’s Daily,  China)

► Pakistani brokerage to trade in Sri Lanka

Sri Lanka on Wednesday approved the first Pakistani brokerage and only foreign securities dealer to trade on the Colombo Stock Exchange, the securities watchdog said. SKM Lanka Holdings, a unit of Pakistan’s Arif Habib Securities, was granted a licence to trade in equities and debt, the Securities and Exchange Commission of Sri Lanka said. Foreign brokers had previously traded on the stock market through joint ventures with local firms, but the last pulled out in early 2000. Several foreign banks deal in the secondary debt market.  (Dawn,  Pakistan)

► India unlikely to ban corn exports 

India is unlikely to ban corn exports as of now, a senior government official said on Friday. "There is no need to ban corn exports as we are exporting very little quantity," Commerce Secretary GK Pillai said at conference in the southern city of Kochi. India is likely to export about 2.1 million tonnes of corn by May, a US Grain Council official said last month, and the Indian government has said production is likely to be about 16.78 million tonnes in the current crop year.   Centre will take initiatives to export tea grown in the gardens of north Bengal to countries like Pakistan, Iran and Egypt.   (Economic Times,  India)

► Pakistan and India to sign gas transit fee agreement soon

Pakistan and India will sign gas transit fee agreement for transmission of gas to India under Iran-Pakistan-India (IPI) gas pipeline deal.  Talking to the reporters, Federal Petroleum Minister, Khawaja Asif said, “the progress on the gas transit fee issue has been made between India and Pakistan on positive note and two countries would soon sign the gas transit agreement.”  Minister said five to six communicative exchanges have been made between Pakistan and India during the recent days and all matters regarding the gas transit fee agreement would be settled within next few days.   (Daily Times,  Pakistan)

► India tea to be exported to Egypt, Iran, Pakistan 

In a press conference at Hasimara near here, Minister of State for Commerce Jairam Ramesh said, "Demand for Indian tea is quite high in Pakistan, Iran and Egypt and tea of north Bengal will be exported to these countries."  "Though north Bengal produces about 250 million kg tea every year, but the export volume is inadequate. Only nine per cent of Darjeeling tea is exported," he said.  Ramesh and other officials of Tea Board of India will visit the countries to promote the export market. Centre has also promised to take special measures for the development of three hundred tea gardens in north Bengal.  (Economic Times,  India)

► Pakistan, Yemen to ink agreement on fisheries trade

Pakistan and Yemen are likely to sign an agreement, at Marine Fisheries department Karachi, for improving fisheries trade and quality. The agreements will be signed Tuesday (today) at the concluding of 5th Pak-Yemen Joint Ministerial Commission (JMC). Officials who attended the meeting told Daily Times that Yemen asked for providing proper training to its people in Pakistan. During the technical session held here Monday between the two countries, it was decided to ink agreement in this regard. Both the countries are likely to sign several agreements in bilateral trade, labour and manpower, food and agriculture and many others after the conclusion of the two-day JMC today.   (Daily Times,  Pakistan)

► Pak basmati export floor price may cost India dear

Taking a leaf out of India’s book, Pakistan has decided to impose a minimum export price (MEP) of $1,500/tonne on fine quality basmati. As there is no export tax, the entire gain from Islamabad’s new price table will be pocketed by private exporters. That has further miffed Indian rice companies, who are already peeved at having to share their profits with the government through a new export tax. According to a circular issued by the Rice Exporters’ Association of Pakistan, super basmati will have an MEP of $1,500/tonne, basmati $1,300/tonne, long grain rice $1,000/tonne and irri-6 $750/tonne. There will be no ban or export tax on rice.  (Economic Times,  India)

► Bangladesh bans rice exports for six months

Bangladesh has banned exports of rice for six months after prices at home doubled in a year causing widespread hardship to the country’s impoverished millions, an official said Thursday. Bangladesh is a net rice and wheat importer but last year exported rice worth $5.5 million to countries with expatriate Bangladeshi populations, said commerce ministry deputy secretary Abu Sayeed Chowdhury. “Bangladesh has banned exports of all kinds of rice except aromatic rice for six months. The ban was imposed to increase the supply of rice in the domestic market and help control the high prices,” he said.  (Daily Times,  Pakistan)

► Prudent approach can help enhance Pakistani exports

Leading knitwear exporters are optimistic that the export target of $30 billion set for 2013 could be achieved provided the private sector and government realise that lack of prudence rather than resources is marginalising textile exports. Successful entrepreneurs have finally realised they are performing much below their actual potential despite their relative success in exports when value-added textile exports of the country are on the decline. They have now come to the conclusion that local exporters are facing the music because of their reluctance to emulate entrepreneurs in competing economies that operate in unison and share technology.  (The News,  Pakistan)

► Indian and Chinese industries to cooperate for IPR protection 

A Memorandum of Understanding has been signed between representatives of Indian and Chinese industries to enhance cooperation for the protection of Intellectual Property Rights. The MoU was signed between Confederation of Indian Industries (CII) and Quality Brand Protection Committee (QBPC) of China Association of Enterprises with Foreign Investment, at the Consulate General of India in Shanghai, a consulate statement said.  QBPC is a nodal organisation for IPR protection with a membership of 181 multinational companies with investments worth $70 billion in China. It has a regular dialogue mechanism with Chinese government for redress of IPR disputes.  (Economic Times,  India)

► Pak economy faces severe inflationary pressure

Prices of fertilisers have jacked up in the range of 15 per cent to 187 per cent, Compressed Natural Gas (CNG) charges up by 14.56 per cent and cement up by 12.48 per cent during the week ended on April 30, 2008 over the corresponding week of the last fiscal. It indicates that if persistent increase in the prices of fertilisers, CNG and cement is not capped, these may hit agriculture growth, the backbone of Pakistan’s economy, and inflate its produce prices, confront big development projects with cost overrun and swell transportation cost in the coming months. The entire nation faces severe inflationary pressure that has crippled the day to day social life of the poor.  (The News,  Pakistan)

► Lanka’s private sector to drive Carbon Credits

Behind every crisis, there is an opportunity. Climate Change is predicted as the biggest crisis faced by mankind and will badly hit developing countries like Sri Lanka. But an opportunity has arisen to earn valuable foreign exchange through mechanisms adopted in the fight against Global Warming. Carbon Trading or selling Carbon Credits earned through Green House Gas (GHG) reduction projects is becoming a lucrative business around the world. To facilitate this, the Sri Lanka Carbon Fund was launched last Monday at a distinguished gathering which included Nobel Laureate Prof Mohan Munasinghe.  (Sunday Times,  Sri Lanka)

► Nepal to witness severe crisis of petroleum products

The country is likely to witness a severe crisis of petroleum products again after the cash-strapped Nepal Oil Corporation (NOC) slashed distribution of petroleum products by nearly 50 percent in the capital city. According to Wednesday's report of The Himalayan Times, NOC supplies manager Mukunda Dhungel said the corporation headquarters had directed its Thankot depot to distribute only 410 kiloliter of petroleum products a day to the dealers from Sunday, while the demand stands at around 800 kl.  "We had to take the harsh decision as we don't have the money to finance regular import with the price of fuel surging in the international market," Dhungel said.  (English People’s Daily,  China)

► ADB sees rise in poverty

The Asian Development Bank has said the impact of soaring food prices will be severe in Pakistan and a 10 per cent increase in prices will add another 7.05 million to the number of poor people. And in the event of food prices increasing by 20 and 30 per cent, the increase in the number of poor people would be 14.67 million and 21.96 million, respectively, said an ADB report entitled ‘Soaring food prices: response to the crisis”. Categorising Pakistan as a low-income country, it said the increase in food prices had aggravated income inequality and about half the expenditure of the average Pakistani was on food.  (Dawn,  Pakistan)