Friday, August 28, 2009 KARACHI - The medium-term economic outlook for Pakistan is fragile and the country faces significant risks, the International Monetary Fund (IMF) said in a review. Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves. Last month, the fund increased the loan to $11.3 billion, and also released a third tranche of $1.2 billion. A slower global recovery, higher commodity prices, and political instability, as well as existing constraints on energy and infrastructure pose significant risks to the outlook, the IMF said in its latest review, posted on its website. The IMF said the main macroeconomic indicators showed an improvement but the economy was still vulnerable to shocks. Inflation had declined from a record high in August last year but the pace of the decline, especially in the latter part of the 2008/09 fiscal year, which ended on June 30, had been slower than expected, the IMF said. Imports had contracted sharply and overseas workers remittances had continued to grow which had helped the current account deficit improve. However, the financial account remained weak as net foreign flows declined by nearly $3 billion in the 2008/09 fiscal year compared with the previous year, it said. GDP growth in the 2009/10 fiscal year is projected at 3 percent from an earlier 4 percent, the IMF said. The government has set a target of 3.3 percent. The IMF said Pakistan s performance to the end of June, according to preliminary data, suggested that targets set for the State Bank had been met, but the fiscal deficit had exceeded a ceiling by 0.9 percent of GDP. The IMF said it opposed a cut in interest rates until inflation fell significantly. Staff argued that the policy interest rate should remain on hold until core inflation shows a further significant decline, it said. The central bank announced this month a cut of 100 basis points in its policy rate to 13 percent. State Bank of Pakistan Governor Salim Raza said the cut recognised positive macroeconomic developments and would provide impetus for growth, while the central bank was not underestimating the problems the economy faced. The data under review by the IMF was for the period up to June. Inflation decreased to 11.17 percent in July from a year earlier, and from 13.1 percent in June. Visit Finance.KalPoint.Com for latest financial stories...
Friday, August 28, 2009
THE RUPEE: dollar slightly low
Posted by imdurrani Labels: forex market, pakistan, Pakistani Rupee, World Currencies, world forexKARACHI: The rupee was firmer against dollar on currency market on Wednesday despite the higher demand for the US currency, money analysts said. On the interbank market the rupee rose by 3 paisa against dollar for buying and selling at 82.70 and 82.80, experts said. Open Buying Rs 82.70 Open Selling Rs.82.80 Interbank Closing Rates: Interbank Closing Rates For Dollar On Wednesday. Buying Rs.82.75 Selling Rs.82.80 (BRecorder)
Amid third Asian session yen and dollar slipped, giving back early gains, as volatile Chinese shares rose and crude trimmed its losses, helping higher-yielding and commodity-linked currencies back from the day's lows.
OPEN MARKET RATES: The rupee rose by 10 paisa more against dollar for buying and selling at 82.70 and 82.80, dealers said. The rupee, however, fell in relation to euro shedding 10 paisa for buying at Rs 117.65 and losing 20 paisa for selling at Rs 118.25, they said.
Thursday, August 27, 2009
Thursday, August 27, 2009
Oil price hits 10-month peak at $75
Posted by imdurrani Labels: global economy, Oil prices, world economy, world financeThursday, August 2 7, 2009 LONDON: World oil prices briefly struck 75 dollars per barrel on Tuesday for the first time in ten months, as traders reacted to rebounding consumer confidence in key energy consumer the United States. The rebound in confidence was stronger than the 47.9 reading that most analysts had expected. The index had hit an eight-month peak of 54.8 in May. The August data had a great deal of impact and was probably responsible for the whole move higher, Hart added. Consumer confidence is very closely tied to the US economy — 70 percent of the economy is driven by consumer spending and if the consumer is feeling better then that bodes well for the economy, which is good for energy demand. Crude futures had already powered to 10-month peaks on Monday amid growing hopes for global economic recovery and China s strong oil data. Markets also found a springboard from US Federal Reserve chief Ben Bernanke s positive comments on Friday about the outlook for recovery from global recession. Fed Chairman Ben Bernanke, who was reappointed to a second four-year term on Tuesday, had said last week that prospects for growth appear good despite financial market strains. European Central Bank boss Trichet also predicted last week that the world s economic free fall was over. Oil prices have slumped since striking record highs above 147 dollars in July 2008 as a vicious global recession slashed energy demand. They have since clawed back ground on recovery hopes. The market also got a major boost on Monday from data out of China — the world s second-biggest energy consuming nation after the United States. Chinese demand for oil increased for the fourth consecutive month in July, said analysts at JBC Energy in Vienna. Year-on-year, oil consumption — excluding stock changes — was up by some 3.5 percent, they noted. Traders will switch their focus on Wednesday to the weekly oil inventories report from the US government s Department of Energy. Visit Finance.KalPoint.Com for latest financial stories...
In late afternoon trade here, New York s main contract, light sweet crude for October delivery, spiked to 75.00 dollars exactly — reaching a level last seen in October 2008 before the global recession. However, the contract later pulled back to 73.45 dollars, down 80 cents from Monday s closing level. And London Brent North Sea oil for October fell 42 cents to 73.95 dollars a barrel. It was very much a knee-jerk reaction, said Hanson Westhouse analyst David Hart, adding that there was a lack of buying interest to maintain prices above the key 75-dollar level. The logical conclusion to draw is that prices are going to go higher, Hart added. US consumer confidence rose more than expected in August after two consecutive months of declines, buoyed by a jump in recovery hopes for the coming months, the Conference Board announced on Tuesday. The business research firm said its consumer confidence index climbed to 54.1 in August from an upwardly revised 47.4 in July.
Thursday, August 27 2009
A massive shortage in sugar stocks in India and Pakistan has led to soaring prices and consumer unrest, BBC reported on Tuesday. The Indian govt has introduced strict limits on companies that stockpile sugar to check rising prices. Shortages led Pakistan s government to nearly double sugar prices causing public outrage ahead of the fasting month of Ramadan. The price of raw sugar worldwide has increased to its highest level since 1981, as supply concerns grow.
Thursday, August 27, 2009 
KARACHI: Teledensity reached 62.3 per cent in the country in July this year, almost 110bps higher than the preceding month, according to data released by the Pakistan Telecommunication Authority (PTA). The cellular segment witnessed a decent trend with a penetration level of 58.50 per cent.
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