► Trade and investment opportunities in South Asia 

The Sri Lanka Economic Summit 2008 organised by the Ceylon Chamber of Commerce and taking place from July 1 to 3 will feature – among other issues – a session on Trade and Investment Opportunities in the SAARC region. The session’s panel discussion would involve Chandrajit Banerjee, Director General, Confederation of Indian Industry, Dr Ayubar Rahman Bhuyan, Economic Advisor, Metropolitan Chamber of Commerce and Industry, Tariq Sayeed, President SAARC Chamber of Commerce, Chandi Dhakal, Immediate Past President, Federation of Nepalese Chambers of Commerce and Industry, .  (Sunday Times,  Sri Lanka)

► SAARC – Waking up a sleeping beauty

The main objective of SAARC was aimed at accelerating the process of socio/economic development in the member states through an integrated action plan in numerous areas of co-operation such as agriculture, communication, education, culture, sports, environment, health, population services, meteorology, prevention of trafficking/drug abuse, rural development, science and technology, tourism, transport and women in development.  The moulding of SAARC, launched in 1985, to meet the challenges of the 21st century over the past 23 years could be seen to be lacking in leadership and direction when one compares it to other similar regional bodies such as APEC which was formed in 1989.  (Sunday Times,  Sri Lanka)

► Japan ratifies free trade accord with ASEAN

Japan ratified a free trade accord with ASEAN on Saturday as the country’s divided parliament ended its session. Under the deal, about 90 per cent of trade between Asia’s largest economy and the 10-nation ASEAN bloc, which has a combined population of 550 million, will be tariff-free within 10 years. The government plans to exchange diplomatic documents on the pact with ASEAN member states which have already ratified it, officials said. The pact was automatically ratified at midnight as it remained pending in the upper house for 30 days after approval by the more powerful lower house.  (The News,  Pakistan)

► Bush seeks trade concessions from Brazil, India, China

Brazil, India and China need to make more concessions in their manufacturing and services sectors for a successful conclusion to the Doha round of global trade talks, US President George W Bush said on Monday. “Where I am concerned about Doha is that, while we are making some progress on the agricultural side, nations such as Brazil, India and China are not making corresponding openings on manufacturing and services sector,” Bush told reporters after meeting British Prime Minister Gordon Brown in London.Bush told reporters after meeting British Prime Minister Gordon Brown in London.  (Daily Times,  Pakistan)

► U.S., China to seek bilateral investment treaty

The U.S. and China said Wednesday they have agreed to negotiate a treaty to protect private investment in their countries. The agreement is part of the Strategic Economic Dialogue, two days of talks between the countries taking place in Annapolis, Md., that were scheduled to wrap up Wednesday. The Chinese delegation met with President Bush at the White House before the talks concluded. Bush wanted to discuss "the importance of the economic relationship" with the Chinese officials, said Tony Fratto, a White House spokesman.  (Bilaterals.Org)

► Pakistan's trade deficit with India at $894 mn 

Pakistan's trade imbalance with India was at $894 million in first 10 months of the current fiscal against previous year's $866 million, according to data available with the trade and commerce ministry.  Between July 2007 and April 2008, Pakistan imported - through official channels - goods worth $1.209 billion from India against $1.181 billion in the corresponding period of the previous year for an increase of $28,000. Pakistan's exports to India were at $227 million during July 2007-April 2008 against $315 million in the corresponding period of the previous fiscal.  (Economic Times,  India)

► 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)

► Sri Lankan April trade deficit hits six-year high

Sri Lanka's trade deficit hit a six-year high of $659 million in April as the cost of food and petroleum imports soared, the central bank said on Monday.  The April deficit rose 67 percent from a year earlier as imports jumped to $1.27 billion, up 37 percent, outstripping revenue from exports such as garments and industrial goods, which was up a more modest 15 percent at $609.6 million.  The trade deficit widened to $2.045 billion in the first four months of 2008 from $1.063 million in the same period last year.  "Import expenditure on consumer goods, namely food, increased significantly, with significant increases in expenditure on rice and sugar," the central bank said in a statement.   (Daily Times,  Pakistan)

► Sri Lanka’s trade gap doubles on oil imports 

Sri Lanka’s trade deficit widened to more than $2 billion in the first four months of the year as imports of oil erased export gains, central bank figures showed Monday. Imports from January to April rose to $4.53 billion, up from $3.29 billion in the corresponding period last year, the bank said. Exports grew marginally to $2.48 billion, up from $2.23 billion. In May, the bank said remittances climbed 23.5 percent to $752.2 million for the three months to March this year. Sri Lanka bought $1.11 billion worth of oil in the first four months of this year, up 76.3 percent from $632 million spent in the corresponding period last year.  (Daily Times,  Pakistan)

► Vietnam, Pakistan outdo India in US, EU textile mkts 

Smaller countries like Vietnam, Bangladesh and Pakistan are outdoing India in textile and clothing exports to the US and EU in the post-quota (2005-2007) period, confirmed a FICCI study. Vietnam’s share in EU25’s imports of textile and clothing has increased from 0.8% in 1995 to 1.6% in 2007. India has only been able to keep its rank intact in EU market at number three, while Bangladesh has impoved from sixth position in 2002 to fourth 2007. Similarly, in the US, Vietnam seems to be fast catching up with India’s exports.  (Economic Times,  India)

► Myanmar foreign trade registers new high in 2007-08

Myanmar's total foreign trade volume in the 2007-08 fiscal year which ended in March stood 8.851 billion U.S. dollars, a new high against 2006-07's 8.1 billion U.S. dollars, the State Customs Department said in its latest statistics. Of the total, the exports took 6.043 billion dollars, while the imports accounted for 2.818 billion dollars registering a trade surplus of 3.225 billion dollars. Such trade surplus has been gained since 2002-03, before which the country suffered a trade deficit for many years.before which the country suffered a trade deficit for many years.  (English People Daily,  China)

► India warns against panic as prices hit peak

India’s finance minister warned on Saturday against “panic” and promised more measures to tame prices, a day after the country’s inflation rate shot to a 13-year high. “We should not give room for panic. We should take steps to quell inflationary expectations,” said Finance Minister Palaniappan Chidambaram after meeting the head of India’s central bank to discuss steps to tame inflation. Data on Friday showed annual inflation in the world’s second fastest-growing economy jumped to 11.05 per cent for the week ended June 7 from 8.75 per cent a week earlier, stunning economists who had expected it to be in single digits.  (The News,  Pakistan)

► Economic survey and constraints of Pak budget makers   

Economic Survey (ES) released by the Federal Government on 10 June 08, one day prior to presenting the federal budget to the National Assembly depicted an all- round poor performance by economy during outgoing fiscal year for multiple reasons of political uncertainty, rising prices of food, petrol and raw materials in international market, high domestic demand of consumable items, expansionary fiscal policy and lack of visionary management of economy during past few years. This has certainly increased stakes for the newly elected government. It has a difficult job of not only containing the slide down in economy but it has also to regain lost growth momentum.  (The News,  Pakistan)

► Oil price rise and implications for Pakistan

Pakistanis have been particularly vociferous in holding the government accountable for the oil price rise in recent months. Not surprisingly, the politicians have been embroiled in a blame game made all the more credible because of the fact that the country has been subjected to three different administrations during the past eight to ten months. Throw in a general election considered to be largely fair and free, and one has all the ingredients necessary to make accusations stick. The budget for the fiscal year 2006-07, prepared by the Shaukat Aiz government, failed to take any account of the possibility of a rise in the international price of oil.   (Business Recorder,  Pakistan)

► SriLankan secures two fuel hedging contracts

In a bid to beat the rising fuel prices, the national carrier SriLankan Airlines has executed two fuel hedging contracts last month, according to a top official. "These contracts were for 50,000 oil barrels, which is about 20 percent of our consumption, which we executed through two international banks that are present locally,"  told The Sunday Times FT. He said the airline can make gains from all its expenditure items such as fuel. "Hedging is one way. This provides stability for the future. As we go, we will look at all sorts of financial instruments, which will ensure predictability," he noted.  (Sunday Times,  Sri Lanka)

► 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 .  (Business Recorder,  Pakistan)

► Bangladesh building sustainable shrimp industry

Bangladesh is trying to build a hygienically safe, economically viable, environmentally sustainable and socially responsible shrimp industry, reports BSS.  This was stated by Syed Mahmudul Huq, Chairman of Bangladesh Shrimp and Fish Foundation, at a view-exchange meeting, organised by the Global Works Foundation in Washington on June 19, according to a message received in the city Saturday. He outlined the steps taken by the government and other stakeholders to make the industry compliant with national and international labour norms and standards.  (The Financial Express,  Bangladesh)

► Most rice mills resume operation in cyclone-hit areas in Myanmar

Most of the rice mills in Myanmar's Yangon division, which were destroyed in a cyclone storm early last month, have resumed operation after prompt repair, the local weekly Flower News reported Tuesday. Of the 110 over-15-ton rice mills in Yangon division, nearly 100 have returned to normal operation since the beginning of this month, the report said quoting the Myanmar's Rice Millers Association. However, of the 170 rice mills in the cyclone-hard-hit Ayeyawaddy delta region, only 50 could run.  The private rice millers are endeavoring to put all the 280 rice mills in both divisions into full production by the beginningof next year, the report added.  .  (English People Daily,  China)

► World Bank provides $320 mln for Bangladesh as budget support

The World Bank Tuesday approved 320 million U.S. dollars of credit for Bangladesh to help offset the budget deficit in the current fiscal year ending on June 30, a World Bank release said. The release said the 200 million U.S. dollars Transitional Support Credit (TSC) is designed to help reduce pressure on the 2007-08 fiscal (from July 2007 to June 2008) budget, which is staggering under the weight of the adverse internal shocks that include the twin floods and cyclone Sidr in 2007 as well as the rising commodity prices, particularly oil, food, and fertilizer in the global markets.   (English People Daily,  China)