BISINISS WORLD NEWS

LAHORE: The country is facing severe load-shedding, causing hardship to the people besides jamming the wheel of industry.

The situation may lead to contribute towards the problem unemployment.

PEPCO sources said the demand for electricity has exceeded 13500 MW with the soaring temperature against the present generation of 9000 MW, resulting in a supply and demand gap of 4500 MW.

Consequently, the cities across the country are facing up to 8 to 11 hour load-shedding while the duration of power outages in rural areas has touched 18 hours. The capital city of Islamabad is facing unannounced load-shedding of 8 to 10 hours.

The prolonged power outages have adversely affected the trade, agriculture and industry besides water supply.

KARACHI: The State Bank of Pakistan and all offices of SBP Banking Services Corporation, including Public Debt Offices will remain closed on March 23 (Tuesday) on account of Pakistan Day.

 PESHAWAR: Chamber of Commerce & Industries (CCI) NWFP has rejected the implementation of Value Added Tax (VAT) and urged that stakeholders in all big cities should be consulted in this connection.

President of CCI NWFP Riaz Arshad addressing a news conference here said business community is already passing through a critical phase and implementation of VAD will force closure of business activities. He said it is well-planned conspiracy to create clash like situation between the government and business community. Arshad also rejected the income tax survey and announced that it will be opposed.

 ISLAMABAD: A meeting of the Cabinet Committee on Energy Crisis (CCEC) was held here Friday under the chairmanship of Minister for Water and Power Raja Pervaiz Ashraf to discuss the current power situation and related matters in the country.

Ashraf said the government was taking all possible measures to reduce the gap between demand and supply.

He said that new IPPs (Independent Power Plants) and rental power plants would add to generation which would help bring down the duration of load-shedding in peak summer.

The meeting was of the view that load-shedding would come down after increase in the water flows into the dams that would result in additional hydropower generation. At present, hydropower generation was at its lowest.

The committee asked the PSO to enhance the KESC’s credit line for supply of 2,000 tons furnace oil on a daily basis. The CCEC also asked the PSO to continue regular fuel supply to IPPs and GENCOs.

The KESC was asked to ensure maximum power generation to curtail load-shedding.

The KESC managing director informed the meeting that there was no load-shedding for the industrial sector in Karachi.

The PEPCO managing director briefed the committee in detail on the current power situation and said that due to remedial measures additional power would be injected into the national grid by peak summer after complete rehabilitation of some of the existing thermal power units besides commissioning of some IPPs.

The CCEC reviewed the demand and supply situation of electricity as well as oil and gas position for power generation.

The committee was of the view that the power situation would improve by mid- April as a result of measures being taken by the government and also because anticipated increase in hydropower generation.

Earlier, the PSOP managing director informed the meeting that oil supply to the power units would further improve as adequate oil supplies had already been procured and the supply line had considerably improved.

A number of financial measures were also decided to maintain adequate oil and gas supplies to this sector.

The meeting was attended by Federal Minister for Information and Broadcasting Qamar Zaman Kaira,, Secretary Water and Power Shahid Rafi, Adviser Water and Power Riaz Ahmed Khan, Secretary Finance Salman Siddique, the additional secretary ministry of petroleum, the additional secretary ministry of water and power, PEPCO MD, PSO MD, KESCMD and other senior officials of the ministry of water and power, PEPCO and the SNGPL.

 ISLAMABAD: Newly appointed Finance Advisor Dr. Abdul Hafeez said Friday such financial planning would be evolved which will help boost economy and improve the living standards of people, Geo news reported.

This he said talking to Geo news after calling on PM Yusuf Raza Gilani here in Islamabad.

Detailing on the meeting, he said we discussed financial policies of government and ways to bring improvement into them.

PM hoped with the appointment if Abdul Hafeez as financial advisor growth in investment sector will be seen and the trade activities will get a boost.

The Premier said, the issue of circular date will soon be resolved in order to get rid of power crisis.

There is room for growth in Pakistan economy, advisor said on the occasion.

ISLAMABAD: The fifth tranche of IMF loan may suffer delay of one week because Pakistan has failed to sign the letter of intent since its negotiations with the fund held on February 15. According to sources of Finance Ministry, the negotiations between Pakistan and IMF were held on February 15 in connection with the 5th tranche of the loan and the 4th quarterly review. The letter of intent mentioning finalization of the above matters was to be signed and sent to IMF by the start of March. Prime Minister Yusuf Raza Gilani, being the holder of the portfolio of finance minister, was to sign the letter which has not yet been signed. Therefore, the IMF Board meeting, in connection with the release of 200 million dollars instalment, which was originally to be held on March 23 will now be held on March 31.

 KARACHI: Syed Salim Raza, Governor, State Bank of Pakistan launched a Credit Guarantee Scheme for Small and Rural Enterprises, under the Financial Inclusion Program (FIP) today.

He also announced a Refinance Scheme for Small and Medium Enterprises (SMEs) in North West Frontier Province (NWFP), Federally Administered Tribal Area (FATA) and Gilgit-Baltistan (GB).

These schemes were aimed at enhancing the flow of credit to the SME and Agriculture sectors with greater emphasis on revitalization of business activities in the troubled areas of NWFP, FATA and Gilgit-Baltistan.

HONG KONG: A bout of bargain-hunting and a stronger dollar boosted sentiment in Asia on Friday with stock markets higher during a quiet trading day. The greenback was given a lift against the troubled euro in New York on Thursday as dealers ran for the safe haven unit after Athens warned it might go to the International Monetary Fund if European partners failed to help. And concerns that China could raise interest rates were eased slightly after the country's central bank drained billions of dollars out of the financial system. Greek Prime Minister George Papandreou urged the European Union to help a "family" member as the interest rate Athens pays to borrow money on the bond market shot up amid uncertainty over Europe's willingness to help. And Germany, reluctant to bail out Greece, seemed to be happy to let it seek IMF help. Britain and Sweden had already backed the idea. A Greek official told Dow Jones Newswires that Athens could go to the Washington-based lender as early as the April 2-4 Easter weekend. In Asian trade the dollar stood at 90.45 yen, up from 90.39 Thursday in New York. The euro was at 1.3621 dollars and 123.20 yen, compared with 1.3603 dollars and 123.07 yen in New York. Tokyo's Nikkei ended 0.75 percent, or 80.69 points, higher at 10,824.72. "A slight appreciation in the yen during the morning session perhaps had a positive impact on exporters such as car makers and technology companies," Mizuho Securities Senior Strategist Tomochika Kitaoka said. Crisis-hit Toyota rose 1.98 percent to 3,600 yen as the world's largest automaker continues its bid to repair its reputation after a global recall. Nissan, which announced it would build its zero-emission Leaf electric car at a plant in Britain, closed flat at 766. Sydney closed 0.19 percent, or 9.1 points, higher at 4,872.2. Miner BHP Billiton added 0.09 percent to 43.20 dollars (39.85 US) but Rio Tinto slipped 1.04 percent to 76.19 dollars after announcing a 1.35-billion-US -dollar deal to develop a huge African iron ore field with China's Chinalco. Hong Kong also gained 0.19 percent, or 40.15 points, to end at 21,370.82, Shanghai closed 0.71 percent higher, adding 21.66 points to 3,067.75 after the Rio-Chinalco deal was announced. Sentiment was also helped by easing concerns over an imminent rate hike faded after the central bank said Thursday it took a massive 213 billion yuan (31.2 billion dollars) from the financial system this week to tighten liquidity. The move marked the largest weekly amount of money taken out in two years, analysts said. "Overall, market sentiment has improved somewhat in recent sessions, as concerns over imminent monetary and credit tightening faded a little," Li Xianming, an analyst at Ping An Securities, said. Regional dealers were making the most of broad losses on Thursday although they had been given a cue from Wall Street, where the Dow rose 0.42 percent, its eighth straight gain. US stocks were pushed up on welcome consumer prices and jobs data showing the economy continued to slowly pick up. The Labor Department said weekly initial unemployment insurance claims were at five-week lows while the consumer price index was unchanged in February from a 0.2 percent rise the previous month. The prices news meant there was little threat that the Federal Reserve would have to deal with ultra-low interest rates any time soon. Oil was lower, with New York's main contract, light sweet crude for April delivery, falling 33 cents to 81.87 dollars a barrel. Brent North Sea crude for May eased 18 cents to 81.30 dollars. Gold closed higher at 1,124.00-1,125.00 US dollars an ounce in Hong Kong, up from Thursday's close of 1,119.00-1,120.00 US dollars an ounce. In other markets: -- Singapore was flat, ending 1.76 points higher at 2,915.70. Property developer CapitaLand was 0.49 percent lower at 4.04 Singapore dollars, DBS Group Holdings dropped 3.15 percent to 14.12 Singapore dollars and Singapore Airlines fell 1.03 percent to 15.44 Singapore dollars. -- Seoul closed 0.65 percent, or 10.94 points, higher at 1,686.11. -- Taipei rose 0.15 percent, or 11.57 points, to close at 7,897.91. "After significant gains seen earlier this week, many investors have turned reluctant to chase prices amid fears of strong resistance ahead of the key 8,000 points level," President Securities analyst Vickie Hsieh said. Taiwan Semiconductor Manufacturing Co fell 0.66 percent to 60.00 Taiwan dollars and Yuanta Financial lost 0.49 percent to 20.20. -- Jakarta gained 0.21 percent, or 5.73 points, to 2,742.97. Gas company Perusahaan Gas Negara jumped 3.7 percent to 4,225 rupiah, while food products maker Indofood rose 1.8 percent to 4,150 rupiah. -- Kuala Lumpur lost 0.41 percent, or 5.34 points, to close at 1,296.60. Top bank Maybank was down 0.80 percent to 7.24 ringgit, while plantation giants IOI and Sime Darby both lost 1.10 percent to 5.36 and 8.44 respectively. -- Manila fell 0.12 percent, or 3.72 points, to 3,097.23. Philippine Long Distance Telephone declined 1.2 percent to 2,550 pesos while Ayala Land shed 2.2 percent to 11.50. -- Wellington closed 0.30 percent, or 9.72 points, higher at 3,230.40. Sky City ended up 0.9 percent at 3.42 New Zealand dollars but Telecom fell four cents to 2.11 dollars. -- Bangkok rose 2.05 percent, or 15.57 points, to close at 774.59. Coal producer Banpu rose 6 baht to 620 baht, and Bangkok Bank gained 4.50 baht to 131 baht. -- Mumbai rose 0.34 percent, or 58.97 points, to end at 17,578.23. India's largest mobile phone maker Bharti Airtel rose 3.95 percent 311.85 rupees.

  PESHAWAR: Minister of State and Chairman Board of Investment Saleem H. Mandviwalla has said that a new Special Economic Zone (SEZ) Act is being introduced according to which new industrial zones would be exempted from tax for the period of ten years.

He was addressing the traders at The Sarhad Chamber of Commerce and Industry (SCCI) today.

New act is being introduced to boost investment in the country, he added. The act would be presented in next federal cabinet meeting before tabling in the Parliament.

 ISLAMABAD: After tough days in 2009, Large Scale Manufacturing (LSM) registered substantial growth of 7.46 percent in January over the corresponding period last year.

The strong performance of the sector in January also pushed up the overall growth figures of the current financial year as in July to January 2009-10, it grew 2.34 percent over the corresponding period of last fiscal year.

The break-up of industrial sector showed that the petroleum sector continued performing dismally and Oil Companies Advisory Committee (OCAC) index recorded fell immensely 9.16 percent in January and 6.49 percent in first seven months of this fiscal year.

Analysts pointed out that the number of issues are still impeding the growth in the industrial production like high financing cost, growing prices of utilities and above all the prolonged power outages in the industrial hubs of the country are giving a severe blow to industries.

KARACHI: Tea worth $16.41 crore was imported during first 8 months of current fiscal year, standing at 23% more in comparison with same period of last fiscal year, Geo news reported.

According to the statistics released by State Bank of Pakistan (SBP), $1.99 crore tea was imported during the month of February 2010, which was 27% more than it was imported in February 2009 and was 35% less as compared to January this year.

Fiscal year 2009 saw import of $20 crore tea, which was 11% more than previous fiscal year.

 HONG KONG: Asian stock markets turned in a mixed performance Friday, fluctuating as uncertainty over debt-laden Greece weighed on investors.

In Japan, the Nikkei 225 stock average fell 71.49 points, or 0.7percent, to 10,815.52. Hong Kong's Hang Seng lost 53.00 points, or 0.3 percent, to21,277.67 and South Korea's Kospi was up 5.98 points, or 0.4percent, at 1,681.15.

Elsewhere, Shanghai's market eased 0.4 percent, Australia's index ticked 0.1 percent higher and Taiwan's market dropped 0.3 percent. Oil prices were lower in Asia, the benchmark contract shedding 35cents to $81.85 a barrel. The contract lost 73 cents overnight.

In currencies, the dollar gained to 90.43 yen from 90.35 yen. The euro was higher at $1.3620 from $1.3603. Overnight on Wall Street, modestly positive economic data helped pull Wall Street to another higher finish.

The Dow rose 45.50, or 0.4 percent, to 10,779.17. That marks the highest close since Oct. 1, 2008. The Dow last rose for eight straight days in the period ended Aug. 27. The broader Standard & Poor's 500 index slipped 0.38, or less than 0.1 percent, to 1,165.83.

LAHORE: All Pakistan Textile Mills Association (Aptma) has called off its strike after the assurance from the Punjab Governor Salman Taseer to settle the issue.

The Governor visited Aptma office here on Thursday and assured Aptma office-bearers that a committee would be constituted to redress the grievances of Aptma.

The Governor while conveying a message of President Asif Ali Zardari of giving an equitable treatment to Aptma said that a meeting of all stakeholders including Aptma members would also be held with the President and Prime Minister of Pakistan.

He said that strikes and protests were against economic interests of the country.

He said that the committee would listen views of all the stakeholders.

The Governor said that he has discussed the issue with Federal Textile Minister Rana Farooq and he would work to resolve the issue within a shortest possible time.

Later, talking to the media, Chairman Aptma Ejaz Gohar thanked the Governor for visiting Aptma office and for his promise of resolving the issue of quota on export of cotton yarn.

He announced calling off the strike of Aptma and said the government should work out the issue within 14 days.

He said that Aptma had never been in favour of strikes, but it had to go for it due to the unavoidable circumstances.

Senior Vice Chairman SM Tanvir and Muhammad Akbar Sh Vice Chairman Aptma and other senior members were also present on the occasion

 KARACHI: The Pakistan State Oil today resumed supply of oil to Karachi Electric Supply Corporation (KESC) after it assured the oil supplier of paying outstanding dues of Rs800 million.

The KESC gave this assurance at a meeting held in the Governor House and that the PSO was expecting to get the payment on Friday, the spokesperson said.

The spokesperson said that KESC would start getting 2000 ton furnace oil for the next five days.

Both companies are also likely to sign a new pact about oil supply in few days, according to spokesperson

  LONDON: World oil prices lost ground on Thursday as dealers took their cue from the strengthening US currency, analysts said.

New York's main contract, light sweet crude for April delivery fell 52 cents to 82.41 dollars a barrel.

London's Brent North Sea crude for May delivery was down 59 cents to 81.37 dollars.

The euro sank against the dollar on Thursday on persistent worries over the Greek debt crisis after Athens warned it could appeal to the International Monetary Fund for aid if none is forthcoming from its eurozone partners.

In earlier morning trade, the European single currency tumbled to 1.3648 dollars, before recovering to 1.3663 dollars, still down from 1.3735 dollars late in New York on Wednesday.

"The strengthening US dollar still remains a challenging issue which put further pressure on the energy market and prompts investors to some profit-taking," said analyst Myrto Sokou at the Sucden brokerage in London.

"The energy market is still without direction, while oil prices are likely to remain in the 80-84 dollar narrow range for next week's trading sessions."

A stronger greenback makes dollar-denominated crude more expensive for buyers using weaker currencies. It therefore tends to stimulate oil demand and prices.

Crude futures had risen on Wednesday on signs of stronger energy demand in key consuming nation the United States, and after the OPEC oil cartel decided to freeze its output levels in line with market expectations.

The US Department of Energy said stockpiles of distillates, including diesel and heating fuel, fell more than expected, by 1.5 million barrels in the week ending March 12. Gasoline sank by 1.7 million barrels, widely topping foreasts.

"Crude oil prices rose slightly on Wednesday near 83 dollars per barrel, supported by a weaker US dollar and a bullish sign from the EIA report that showed a drop in gasoline and distillate stocks," added Sokou.

But a decision by the Organisation of the Petroleum Exporting Countries (OPEC) to hold quotas will support prices in the long-term, analysts said, adding Thursday's fall was likely to be temporary.

"We expect that OPEC will retain a cautious approach in the coming year, only increasing production targets when it is clear that growth in oil demand has wound back the inventory overhang," analysts from the Commonwealth Bank of Australia said.

"This approach will support oil prices," they said.

OPEC left its output ceiling unchanged at 24.84 million barrels a day at a meeting in Vienna, citing uncertainty in the macroeconomic environment and world oil demand.

OPEC said it would review the economic situation at its next ordinary meeting in Vienna on October 14.

VIENNA: OPEC ministers in Vienna have agreed not to change oil output targets. This is the fifth consecutive time since 2009 that OPEC decided to maintain the production quotas of 24.8 million barrels per day.

Since last October, OPEC's oil prices remained around 70-80 U. S. dollars a barrel.

KARACHI: The All Pakistan Textile Mills Association (APTMA) is observing strike today along with around 350 yarn manufacturing factories all over Pakistan to protest against a government move, which slashed their export quota to 35 million kgs of yarn a month from 50 million kg.

Federal Textile Minister Rana Farooq said all the issues would be amicably resolved through negotiations. The most of the textile units in the country are closed today on call by the Aptma.

The textile ministry, which is being accused by representatives of yarn manufacturers of favouring the value-added textile sector, has offered talks, but vowed not to be blackmailed by any interest group.

The APTMA, which speaks for yarn manufacturers, estimates a loss of $15 million to the national economy because of the one-day closure of spinning mills.

“We have boycotted the textile ministry,” Anwar Ahmed Tata, APTMA Chairman, said on Wednesday. “They are taking biased decisions.”

Tata said that APTMA had also challenged the government’s decision in the high courts of Lahore, Islamabad and Karachi.

Textile Minister Rana Mohammed Farooq Saeed Khan told Geo News that the government has always accepted all Aptma’s demands and whenever, spinning sector faced troubles, the government was there to help it out.

He added that the yarn export has affected to a great extent the textile’s value-added sector which provides 80 to 90 lakhs jobs and also its exports dwindled over a period of time.

Earlier on Tuesday, Saeed Khan accused yarn manufacturers of trying to blackmail the government.

Rana Farooq said Aptma has been asked to provide yarn to the local market, as the value-added sector is prepared to buy it at any price.

Mirza Ikhtiar Baig, Federal Adviser to the Ministry of Textile, said the government considered all sectors important and its decision was not biased. The yarn export quota was reduced because non-cotton yarn was not included in the 50 million kg quota, he said.

The textile ministry says during the last two years around 520 million kg yarn were exported each year, but this fiscal year it already crossed 614 million kg.

However, Tata said there was no economic sense of this decision. “They (the government) accuse APTMA of blackmailing, but they are blackmailing us.”

Tata claimed that the textile minister was favouring some value-added sector businessmen from Faisalabad. “There is no doubt that the federal minister has personal interest in this decision. There is no example in the world, where quota has been imposed on the manufacturing sector.”

“The government cannot cap yarn exports under the WTO regime. This is a personal decision of the minister, not even a political decision.”

The spinning sector and the value-added sector have been at the loggerheads for the past several months over the issue of yarn export and its prices.

The value-added sector says due to an increase in yarn exports and prices, they were unable to meet spring orders this year as the cost of their products was higher than their rivals’ in the international market.

Jawed Bilwani, Chairman of the Pakistan Apparel Forum and Chief Coordinator of all value-added textile associations, said the value-added yarn was not put under any capping. Capping was on coarse count only, as spinners broke all records of cotton yarn export. APTMA talks about free market-mechanism, “Free market is not stupidity when they sell at low prices and ask us to import at higher rates,” Bilwani said.

 SINGAPORE: Oil prices fell toward $82 a barrel Thursday in Asia, paring two days of gains that were fueled by signs U.S. crude demand may be improving.

Benchmark crude for April delivery was down 50 cents to $82.43 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.23 to settle at$82.93 on Wednesday.

In other Nymex trading in April contracts, heating oil fell 1.41cents to $2.125 a gallon, and gasoline dropped 1.26 cents to $2.297a gallon. Natural gas slid 3.3 cents to $4.27 per 1,000 cubic feet. In London, Brent crude was down 48 cents at $81.48 on the ICE futures exchange.

 PERTH: Oil prices extended overnight gains and rose above $82 a barrel on Wednesday, supported by a weaker dollar and expectations that producer group OPEC will keep oil output cuts in place at a meeting later in the day.

An industry report that showed a steep fall in U.S. gasoline stockpiles and smaller-than-expected increase in crude inventories also helped buoy investor sentiments.

U.S. crude for April delivery was up 41 cents at $82.11 a barrel by 0046 GMT, after settling up $1.90 at $81.70 on Tuesday. London Brent crude rose 42 cents to $80.95 a barrel.

"Oil prices continue to be supported by the soft tone of the U.S. dollar, while the industry data showing a fall in gasoline is also somewhat supportive," said David Moore, an oil analyst at the Commonwealth Bank of Australia.

The U.S. dollar hovered near one-month lows against a basket of currencies on Wednesday as investors cut long positions after the U.S. central bank retained its dovish bias.

"As for OPEC, expectations that it will leave production targets unchanged are now well factored in prices, so the market will place focus more on the weekly U.S. inventory report instead," Moore added.

Oil demand is picking up and that could mean OPEC does not need to take any further action on supply this year, the group's biggest producer, Saudi Arabia, said, as ministers prepared to rubber stamp existing outpaced targets.

"We have been sailing very well and we will continue to sail very well," Saudi Arabian Oil Minister Ali al-Naimi told reporters a day ahead of the grouping's meeting in Vienna on Wednesday, as other members voiced concern OPEC was pumping too much oil.

U.S. crude oil stockpiles rose much less than expected last week, posting gains of 403,000 barrels in the week to March 12, versus analysts' forecast of a 1.1 million barrel build, according to weekly data from the American Petroleum Institute (API) on Tuesday.

The U.S. Energy Information Administration's report is set for release on Wednesday at 1430 GMT.

Crude oil prices jumped 2.4 percent on Tuesday in their highest daily percentage gain in a month -- as the dollar weakened after the U.S. Federal Reserve renewed its pledge to keep interest rates near zero for an "extended period."

Loose Fed monetary policy can spur investment flows into oil and other commodities as investors seek richer returns.

The Fed also pointed to increased momentum in the economy's recovery, and that, coupled with strength in chipmaker Intel, helped push U.S. stocks to a fresh 17-month high.

Analysts at Barclays Capital said oil prices have consolidated at higher levels and they expect prices to continue to gradually "grind higher," driven by an overall supportive flow of fundamental data and steady improvement in market balances.

KARACHI: The Karachi Electric Supply Company (KESC) has to pay at least Rs115 billion in contrast with Rs50 billion which it is to receive, according to financial results of the Company during July to December 2009.

The Company suffered a pure deficit of Rs8.88 billion during Jul-Dec 2009; while, the financial expenditures rocketed up 125 percent to Rs4.47 billion in the same period.

According to a Jahangir Siddqiui’s analyst, the KESC owes Rs115.16 billion to various departments in Jul-Dec 2009; contrarily, it is to receive only Rs50.56 billion.

The government and the KESC entered a deal in 2009, under which the Company will issue the shares worth $361 million in the next three years; of them, shares worth $206 million have been issued to Abraaj Capital.

   BRUSSELS: The Chinese yuan is "very much undervalued," International Monetary Fund managing director Dominique Strauss-Kahn said Wednesday, adding to growing global pressure on China.

"The renminbi (yuan) is very much undervalued and it's in the logic of rebalancing (of the world economy) that the renminbi will appreciate," the IMF head told the European parliament's economic affairs committee in Brussels.

"It cannot be avoided, in some cases exchange rates have to appreciate, and that's the debate which is very well-known about China and the value of the renminbi," he told the assembled MEPs.

China on Tuesday dismissed calls from US lawmakers for Beijing to be labelled a currency manipulator, saying the value of the yuan was not to blame for global trade imbalances.

On Monday, a group of 130 Democratic and Republican lawmakers called on US Treasury Secretary Timothy Geithner to single out China's yuan policy in a report due next month, saying Beijing was in effect subsidising exports.

Beijing has long linked the Chinese currency to the dollar, rather than letting it float as the country's economy grows.

SINGAPORE: Technology plays led Asian shares higher on Wednesday after the Federal Reserve maintained its pledge to hold interest rates near zero, which kept the dollar near one-month lows against major currencies.

The MSCI index of Asian shares excluding Japan rose 1 percent, tracking U.S. shares which hit a 17-month high overnight after the Fed reiterated that it would keep policy loose for an extended period of time.

The central bank also pointed to increased momentum in the recovery of the world's largest economy and sounded more upbeat about the job market. Speculation that Intel will release positive guidance for the current quarter also helped boost shares of chipmakers and other tech companies in Asia.

Shares in South Korea rose 0.9 percent, with Hynix Semiconductor up 1.7 percent.

Taiwan stocks rose 1.2 percent as gains on Wall Street fueled buying in technology exporters such as AU Optronics, which are riding on growing demand for new computers and other consumer gadgets. AU jumped 2.5 percent.

"Big tech shares are pushing the market higher because prices of DRAMs and (flat) panels are rising and we also see foreign investors coming back," said Tom Tang, a vice president at Masterlink Investment Advisory.

Tokyo's benchmark Nikkei index rose 0.8 percent to an eight-week high as chip shares rose, with Elpida Memory also climbing on a media report of upbeat earnings. But gains were capped by caution ahead of a Bank of Japan policy decision later in the day.

Global stocks were already on a firm note before the Fed's widely expected announcement, buoyed by Standard & Poor's move to affirm Greece's BBB-plus credit rating.

S&P's decision to end its review for a ratings downgrade removed a potential blow to Greece's efforts to raise capital in international markets to plug a gaping fiscal shortfall. However, the credit rating agency did say Athens was still at risk of a rating cut in the next 18-24 months if failed to implement a deficit cutting plan.

Meanwhile, the dollar hovered near one-month lows against a basket of currencies as investors cut long positions after the Fed's rate decision.

The Fed has targeted an overnight bank-to-bank lending rate of between zero and 0.25 percent since December 2008.

Interest rates near zero diminish the yield appeal of the U.S. dollar against higher-yielding currencies. Many economists do not see a U.S. rate rise until late in the year.

The dollar was also under pressure against the yen as the Bank of Japan is expected to further ease its ultra-loose policy to spur the economy and keep yen gains in check.

Gold rose 0.3 percent to $1,127.85 , extending its gains of more than 1 percent the previous day as a U.S. Federal Reserve decision to hold interest rates unchanged burnished the metal's investment appeal.

U.S. crude futures edged up 13 cents to $81.83 a barrel after settling up $1.90 at $81.70 the previous day, supported by weakness in the dollar and expectations that producer group OPEC will keep oil output cuts in place.

BELA: The production of Zinc and Lead (Graphite) minerals for trading purpose will soon begin from Dilband area in Balochistna province, Geo news reported Wednesday.

According to sources of Ministry for Minerals, the mining of the aforesaid minerals is underway on trial basis and it is hoped that the production of the minerals will be kicked off within a few months to come.

It is estimated that 1 million tonnes of Zinc and 32,000 tonnes of Lead will be dug out on annual basis.

A Chinese company is carrying out MCC on mining in Dilband, also known for having done mining in many areas previously including on Chaghi site.

 KARACHI: PIA budget deficit has climbed down by 30 billion rupees at the end of year 2009, PIA authorities announced Tuesday.

According to financial results in Karachi Stock Exchange (KSE), PIA’s budget deficit stood at Rs 5.82 billion by December 31, 2009 with per share down by Rs 2.72.

PIA suffered budget deficit by Rs. 36.13 billion during the same period in previous year with per share down by Rs. 17.79.

Market analyst Mohammed Sohail told Geo news, seeming decline in PIA’s budget deficit was a result of slash in jet fuel during last year together with hike in airfares.

Also, rise in Hajj fares helped corporation better its financial matter, he added.

ISLAMABAD: Federal Petroleum Minister Naveed Qamar said government will prevent Pakistan State Oil (PSO) from bankruptcy.

He was stated this while talking to media after a seminar organized by Society of Development Economics here today.

 ATTOCK: The Pak Oilfields Limited (POL) has discovered oil and gas reserves from the Bela-1 well in Meyal/Uchhri D&P lease in Attock area, says a Karachi Stock Exchange notice.

Reserves of 54 barrels of oil per day and more than two million mcf of gas per day were expected from this discovery.

 LONDON: World stocks rose on Tuesday while the dollar was corralled as investors bet the US central bank will repeat its vow of keeping interest rates low for an extended period.

The Federal Reserve is expected to leave benchmark rates near zero given lingering labour market weakness and nagging doubts about the solidity of the economic recovery. The outcome of the meeting is due at 1815 GMT.

Leaving out 'extended period' in the statement would likely cause US Treasury yields to rise and boost the dollar as it would be seen by the market as a further step towards normalising ultra-loose monetary policy, analysts said.

"The market looks about right in pricing November as the start of the Fed tightening cycle, but the prospect that excess liquidity is withdrawn earlier suggests the risk to US yields and the dollar remains to the upside," said Chris Turner, head of FX strategy at ING.

MSCI's all-country world index rose 0.4 percent, with the pan-European FTSEurofirst 300 gaining 0.7 percent. Japan's Nikkei closed 0.3 percent lower as the market took a breather after having risen to a seven-week high in the previous session.

US stock index futures were all up about 0.2 percent, signalling a firm start on Wall Street.

The Fed's decision comes as investors braced for China to further tighten policy following a recent raft of strong economic data and inflation at a 16-month high in February.

This has been keeping equity investors cautious.

In contrast, the Bank of Japan, which will announce the outcome of its meeting on Wednesday, is seen leaning towards easing monetary policy again, under pressure from a government calling for action to beat deflation.

DOLLAR SOFT

In the forex market, the dollar index, a gauge of its performance against six other currencies, slipped 0.3 percent to 80.005, but held above a three-week low of 79.692 set set on Friday.

"No one seriously expects much change in the Fed's language, but the market thinks that if there is a risk it will be that they are more upbeat, which would benefit the dollar," said Jeremy Stretch, currency strategist at Rabobank in London.

The euro crept up against the dollar and yen as EU finance ministers discussed standby plans drawn up by countries using the euro to provide Greece with financial help if it becomes the first state in 11 years of monetary union to seek such aid.

The single currency hit session highs after data showed German ZEW institute's economic sentiment index came in higher than expected.

It rose 0.4 percent on the day to $1.3722 and gained 0.6 percent to 124.47 yen.

With stocks rising, demand for lower risk government debt eased, driving yields higher. The benchmark US 10-year note yield climbed 1.3 basis points to 3.71 percent, while the euro zone benchmark German Bund yield edged up 1.8 basis points to 3.172 percent.

US crude futures rose 0.5 percent to $80.18 a barrel, recovering from a 1.8 percent slide to the lowest close in two weeks on Monday.

Spot gold rose to around $1,115 an ounce, up more than $4 from New York's notional close, while copper prices gained 1.2 percent to $7,385 a tonne.

 LONDON: World oil prices rebounded slightly on Tuesday, after recent heavy losses, with traders on tenterhooks on the eve of a key production meeting of the OPEC oil cartel in Vienna.

New York's main contract, light sweet crude for April delivery rose 42 cents to 80.22 dollars a barrel.

London's Brent North Sea crude for April delivery was up 48 cents to 78.37 dollars. The contract expires at the close.

The market bounced back slightly after diving the previous day on the back of the strong dollar, and concerns about US energy demand and possible Chinese moves to cool its booming economy.

"Fundamentals (of supply and demand) will be back in focus again also as OPEC meets tomorrow in Vienna where we expect the exporting group to leave output policy as is," said VTB Capital analyst Andrey Kryuchenkov.

He added that such a move would help "reduce swollen stockpiles and support prices in the second quarter of 2010".

Key OPEC members on Monday said there was no need for the cartel to change its official oil output target owing to the current supply, demand and price situation amid a world economic recovery.

The Organization of Petroleum Exporting Countries has no need to "disturb" a balanced oil market, Saudi Oil Minister Ali al-Nuaimi had told reporters ahead of the cartel's latest meeting to set production levels.

Asked if OPEC should change its official output quota at a meeting in Vienna on Wednesday, Nuaimi, whose country is the cartel's biggest oil producer, said:

"Why should we change? The market is in balance, the price is great, inventories are coming down, so why do we need to do anything?"

He added: "Based on what we see, everybody's happy with the market. We are extremely happy with the market. The economy is doing well, (and it) will do better down the road. I don't see any reason to disturb this happy situation."

The cartel's second largest producer Iran meanwhile said that OPEC should not raise its official output ceiling as there was still no sign of any increase in world demand.

KARACHI: State Bank of Pakistan (SBP) said it will specify limits on fees, which banks charge on their various services, as it is a means of exploitation of the consumers, Geo News reported Tuesday.

Talking to Geo News, SBP’s Executive Director Inayat Hussain said the central bank has made it clear to banks that the consumers were being greatly mistreated through their principle of open market with fees on different services.

The central bank is formulating a policy in this connection, under which, the upper limit of these fees will be fixed on accounts statement, cheques, pay order, money transfer, remittances and minimum bank balance, he informed.

Hussain said the decision was made in view of the protection of small accountholders of banks.

Abdush Shakoor, an analyst, said banks earned Rs34 billion in fees, commissions and brokerage last year, which is seven percent ahead of that in 2008.

KARACHI: The State Bank of Pakistan (SBP) will have an excess of powers, if Banking Companies Ordinance 1962 aimed at regulating the banking system, is passed afresh with new amendments, Geo News reported Sunday.

Addressing a media briefing here, the representatives of the foreign investors in banking system said the amendments proposed in Banking Companies Ordinance 1962 will end the protection of constitutional rights relating investment, property, trade and business, which will entail the central bank limitless powers; but, for any appeal against this, no modus operandi has been framed.

It should be mentioned that the central bank has been authorized to manipulate banks’ shareholdings, appoint administrators for unspecified time period and to cap it all, to take banks in its direct control.

The foreign investors said the judicial powers regarding the merger of financial institutions and the Securities and Exchange Commission of Pakistan’s powers on partnership have been delegated to the central bank.

The draft under discussion at the Senate enshrines the SBP’s right to change the Board of Directors of commercial banks, appoint administrators and transfer the officers.

This will give rise to central bank’s interference in banks at extreme low level and will lead to paralyze their managements

   SINGAPORE: Construction workers from Bangladesh, hotel staff from the Philippines, waitresses from China, shipyard welders from Myanmar, technology professionals from India -- Singapore has them all.

For years the rich but worker-starved city-state, built by mainly Chinese immigrants, had rolled out the welcome mat for foreigners, whose numbers rose drastically during the economic boom from 2004-2007.

But with one in three of the five million people living on the tiny island now a foreigner and citizens complaining about competition for jobs, housing and medical care, the government is taking a fresh look at its open-door policy.

With the grumbling getting louder and general elections expected to be called before they are due in 2012, the government has unveiled measures to reduce reliance on foreigners and assure citizens they remain the priority.

"There are social and physical limits to how many more we can absorb," Finance Minister Tharman Shanmugaratnam told parliament in February.

He said the government will make it costlier for companies to hire foreigners by raising the levies they must pay for every non-Singaporean or non-resident they hire.

The government also earmarked 5.5 billion Singapore dollars (3.9 billion US) over the next five years to upgrade Singaporean workers' skills to boost their productivity, make them more competitive and raise incomes.

It imposed measures to cool down rising home prices, also blamed on foreigners buying into the property market, and pledged it will further tighten the process of accepting permanent residents and new citizens.

Of Singapore's population of nearly five million last year, 533,200 were permanent residents and 1.25 million were foreigners on employment passes, along with their families, official statistics show.

"I think it is shaping up to be one of the hottest issues in Singapore today," political commentator Seah Chiang Nee said.

Economist Song Seng Wun of CIMB-GK Research said that apart from helping local companies rise up the value chain, the new measures will also address potential election issues.

Singapore's last elections, held in 2006, saw the ruling People's Action Party returned to power for six years, continuing its uninterrupted rule over the island since 1959.

"The government has to be seen doing something in areas that are potential flashpoints," Song said.

Disenchantment over foreign workers gained momentum during a severe economic slump that began in the third quarter of 2008, when trade-reliant Singapore became the first Asian economy to slip into recession.

Drastic job and salary cuts were implemented, affecting many white-collar workers.

In coffee shops, Internet forums, letters to newspapers and sessions with members of parliament, citizens became more vocal about the rapidly growing numbers of foreigners in their ranks.

The most common complaint is that Singaporeans are losing jobs to foreigners who are willing to accept much lower salaries.

"Foreigners are a great nuisance. I seriously wonder if they are here to work or just snatch jobs from our locals," said one posting on the popular online forum.

"The country is fast becoming an unfamiliar place to many Singaporeans. The sense of national pride is disappearing by the day," said a posting by Nur Muhammad on The Online Citizen.

Seah, who runs a political website, said much of the resentment comes from Singaporeans who have to compete directly with foreign engineers, accountants, hotel managers and IT professionals.

"Most Singaporeans do not feel angry against low-skilled foreign workers... It is more aimed at those who come in as white collar workers and get the jobs that Singaporeans can do," he said.

Citizens have also complained about having to share space in crowded trains with a large number of foreigners, or compete with them for places in government schools and public housing.

Foreign labourers are accused of loitering, spitting in public and leaving litter behind. Another sore point for locals is dealing with waitresses and sales people who can hardly understand English.

Some employers have argued they do not hire Singaporeans for certain jobs because locals are choosy and often lack the natural social and communication skills in service professions like manning hotel front desks.

In some ways, Singapore is a victim of its own success.

A campaign in the 1970s for families to have only two children was so effective that the country is now well below the 60,000 babies needed per year just to naturally replace the resident population.

Efforts to reverse the trend have failed as increasingly affluent couples marry at a later age and opt for just one child or none at all.

Officials, economists and business executives admit that with Singaporeans procreating less, the country will need foreign workers in the long term, while making sure citizens' interests are addressed.

Singapore's founding leader Lee Kuan Yew, who advises the cabinet of his son Prime Minister Lee Hsien Loong, said in January that "we've grown in the last five years by just importing labour."

"Now, the people feel uncomfortable, there are too many foreigners," Lee said.

"The answer is simple: We check the flow of foreigners, raise your productivity, do the job better, so that instead of two workers, eventually you'll do it with one worker, like the Japanese do."

  BEIJING: Chinese Premier Wen Jiabao on Sunday rejected foreign pressure on Beijing to allow its currency, the yuan, to appreciate, warning other countries to stop "finger-pointing".

The United States and the European Union, key trade partners for China, say the Communist leadership has intentionally kept the currency low to boost its exports, vital to the country's emergence from the global economic crisis.

US President Barack Obama called on Beijing last week to adopt a "market-oriented" exchange rate policy, upping the pressure on China to allow the yuan -- effectively pegged to the dollar since mid-2008 -- to appreciate.

Wen hit back, rejecting all outside interference in China's exchange rate policy decisions and saying a stable yuan had helped not just China, but also the world, emerge from the worldwide slowdown.

"We are opposed to the practice of engaging in mutual finger-pointing among countries or taking strong measures to force other countries to appreciate their currencies," Wen told a press conference.

"This kind of practice is not in the interest of the reform of the renminbi (yuan) exchange rate regime," he said at the end of China's annual session of parliament.

The premier said China had made "strong efforts" since the outbreak of the international financial crisis to keep the yuan at a "stable level".

The value of the yuan has become a major sticking point in relations between China and the United States, which are badly strained over a number of other issues including a spate of trade disputes, Tibet, Taiwan and Internet freedom.

Obama on Thursday had called on China to adopt a "market-oriented" exchange rate policy, which he said would make an "essential contribution" to rebalancing the world economy after the global financial crisis.

But Beijing had quickly rejected those remarks on Friday.

"We don't agree with politicizing the renminbi exchange rate issue," People's Bank of China vice governor Su Ning said, according to Dow Jones Newswires.

"We also don't agree with a country taking its own problems and having another country solve them," Su said.

"We believe the yuan exchange rate issue will not help shrink or increase our trade surpluses and deficits."

Many US lawmakers are pressing the Treasury Department to label China a currency "manipulator" in a forthcoming semi-annual report.

LAHORE: The All Pakistan Textile Mills Association (APTMA) has announced a countrywide strike on March 18 to protest a reduction in the yarn export quota from 50,000 to 35,000 tons per month.

The next course of action will be announced after the strike, Chairman APTMA Punjab Gohar Ejaz and senior members said at a press conference at APTMA House here on Saturday.

Gohar Ejaz said the reduction was contrary to the assurance extended by members of the Federal Cabinet to spinners at their meeting early January in the presence of the President of Pakistan.

APTMA member mills were given an understanding that the matter would not remain unsettled up to June 2010, he said, adding, all members of the association would join the strike.

"The only way out of the quagmire was the restoration of Free Trade Mechanism and an end to all restrictions on the export of yarn as per the vision of Mohtarma Benazir Bhutto, which she announced in 1994 as Prime Minister of Pakistan", he said.

While criticising the ministry, he said steps like imposition of quota and later a reduction in it could result in permanent closure of spinning units because of the absence of yarn exports orders from the outside world.

This will result in loss of foreign exchange earnings by Pakistan, he added.

He said spinning industry exports would decline if no immediate revision on quota imposition was made.

The chairman viewed," acute financial hardship is resulting into the closure of business operations besides serious consequences of government meddling in the free market mechanism were burdening the country with incapacity to honour its export commitments".

He said that the value added sector, the most inefficient, was already the beneficiary of a 20% yarn price decrease. It was reasoned that any support desired to be extended to the garment sector should not be done as a cross subsidy realized from the spinning sector, rather the government should support them directly from its own resources, he added.

"Already, the value-added sector was pampered enough by different supports like duty drawbacks, export re-finance etc.

It should learn to stand without crutches," Gohar Ejaz said.

He said there was a unanimous opinion that shortages of cotton and simultaneous yarn export embargo would not only adversely affect the spinning industry but textile exports all across the value chain would also be seriously threatened.

KARACHI: The Department of Excise & Taxation Sindh has made a revenue collection of Rs10.59 billion in the first eight months of the current fiscal, missing the target by Rs2.63 billion.

According to figures released by the Excise Department, Rs6.91 billion collected under the head of Infrastructure Cess constituted a major share of the total collections and it is Rs2.14 billion less than the target.

The officials of E&T Department told Geo News that the decrease in Infrastructure Cess is due to the decline in imports.

The Department collected Rs178 million under Motor Vehicle Tax and Rs150 million as Excise Enactment.

KARACHI: Oil and gas projects of high importance are pending in the courts, OGDCL sources told Geo News.

According to the source projects of 6000 barrels of oil per day (Rs 35.28 million), 300 mmcf gas per day (Rs 66900) and 500 metric tones of Liquefied Petroleum Gas (Rs 22.5 million) were pending in the courts.

These cases were related to oil and gas exploration

KARACHI: Cotton Association of India (CAI) and Karachi Cotton Association (KCA) have reached an agreement to abolish all existing barriers in way of cotton trade between two neighbours, Geo news reported.

President CAI Dheran N Seth visited KCA here on Saturday wherein he called on President KCA Sohail Naseem.

During the sitting, the heads of two cotton associations resolved to mutually resolve disputed issues instead of taking them up before International Cotton Advisory (ICA).

The meeting also decided to hold visits of members cotton associations from two sides on regular basis.

KARACHI: Towels Manufacturers’ Association said the exporters were not consulted over Value Added Tax, Geo News reported Saturday.

According to a statement issued here from the Association, the production cost will soar up as a result of promulgation of the VAT.

The statement said Federal Board of Revenue (FBR) should hold negotiations with the Association before implementing the VAT, so that reservations over the Tax could be dispelled away and any potential harm to the national exports could be spared.

 NEW YORK: Global stocks rose on Friday despite mixed signals from the U.S. economy, while strong euro- zone economic data dragged the dollar down to a month low versus the euro and eased aversion toward the single currency.

An unexpected drop in U.S. consumer confidence led Wall Street to end little changed and pressured commodities, which ended their worst week in a month even as the dollar dropped sharply. A weak dollar usually boosts demand for commodities.

European and global stocks, as measured by the benchmark indexes, ended at almost two-month highs, but U.S. stocks struggled a day after the S&P 500 hit a 17-month closing high.

A slight decline in U.S. consumer sentiment in early March offset data showing U.S. retail sales rose unexpectedly last month, leading Wall Street to gain in early trade.

News that euro-zone industrial output in January recorded its biggest monthly gain on record, while figures for December were revised sharply upward, gave European equities an initial boost. They extended gains on the U.S. retail sales data.

"The prevailing opinion is the market is going to continue to work higher so people don't want to be selling things they expect three to six months from now will be higher," said Michael James, senior trader at Los Angeles investment bank Wedbush Morgan.

MSCI's all-country index .MIWD00000PUS rose 0.4 percent to its highest since January 19, the last day the FTSEurofirst 300 .FTEU3 index of top European shares closed higher.

The Dow Jones industrial average .DJI closed 12.85 points higher, or 0.12 percent, to 10,624.69. The Standard & Poor's 500 Index .SPX slipped 0.25 point, or 0.02 percent, to 1,149.99. The Nasdaq Composite Index .IXIC fell 0.8 point, or 0.03 percent, to 2,367.66.

The upbeat euro zone data gave traders a reason to cover near-record euro short positions, or bets that the euro had room to fall, to prevent losses.

Industrial production in the 16-country currency bloc jumped 1.7 percent from December, the steepest gain since the data series began in January 1990.

The short-covering pushed the euro up 0.75 percent at $1.3762, after hitting session peaks just shy of $1.38, the highest since February 11.

The dollar was down against a basket of major currencies, with the U.S. Dollar Index .DXY off 0.65 percent at 79.803.

Against the yen, the dollar was down 0.07 percent at 90.45.

Oil slipped more than 1 percent toward $81 a barrel after the survey of U.S. consumer confidence reignited investor concerns about U.S. energy demand.

U.S. crude for April delivery fell 87 cents to settle at $81.24, a 26-cent decline for the week. Earlier, the contract had climbed to $83.16, the highest since January 11.

In London, Brent crude fell 89 cents to settle at $79.39.

U.S. April gold futures settled down $6.50 at $1,101.70 an ounce in New York.

Longer-dated U.S. Treasury prices rose over doubts about the pace of economic recovery before next week's Federal Reserve policy meeting.

The benchmark 10-year U.S. Treasury note was up 6/32 in price to yield 3.7025 percent.

KARACHI: The Pakistan State Oil will provide furnace oil to Karachi Electric Supply Corporation (KESC) at the cost of gas till March 15, according to industry sources.

Sources quoted the decision taken at the government level saying that PSO will provide Furnace oil to the KESC at gas prices till March 15 while the finance ministry will pay the difference.

As a result of this understanding, the PSO is providing 100, 000 ton furnace oil at the price of Rs13, 000 only, sources says.

Sources further said that no payment was made yet in this connection.

 KARACHI: Bulls grew further strong Friday leading the local equities market beyond the psychological barrier of 10,000 points – a level witnessed by the Karachi Stock Exchange (KSE) after a period of 19 months.

Upbeat activity continued at the share market right from the beginning of the first session and pushed through till the end of the second session on the last trading day of the week.

The benchmark KSE-100 Index bagged 146 points to finish at five-digit-point-level at 10,025, highest since August 2008.

The market turnover was registered at 190 million shares with Lotte Pakistan topping the list of today’s volume leaders at Rs11.41 up by paisas 4.

Meanwhile, KSE-30 Index surged to the level of 10,448 with a rise of 86 points.

Market analysts foresee the positive trend to continue in the next trading week.

LONDON: Crude oil prices rose on Friday, lifted by signs of firming demand as the world economy recovers from recession, analysts said.

New York's main contract, light sweet crude for April delivery, added 21 cents to 82.32 dollars a barrel.

London's Brent North Sea crude for April gained 17 cents to 80.45 dollars per barrel.

"There is a general consensus that the global economy is growing," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"What has also helped the bullish sentiment is the US oil inventory report," he added.

"Market participants are bullish at this point based on economic recovery optimism and are thinking ahead about the summer driving season raising gasoline demand in the US."

The upcoming driving season, which starts in May, sees gasoline or petrol demand hit a peak as many Americans hit the roads for holiday trips.

The US Department of Energy's weekly oil inventory report Wednesday showed a surprise drop in gasoline stockpiles, a key factor behind the large supply backlog, indicating strengthening demand.

Gasoline stockpiles tumbled 2.9 million barrels in the week to March 5, surprising the market as most analysts had expected an increase of about 100,000 barrels.

Distillates reserves, which include diesel and heating fuel, slumped by 2.2 million barrels. That was far more than predictions of a 700,000-barrel drop.

US crude oil inventories meanwhile climbed 1.4 million barrels, which undershot analysts' consensus forecast for a 1.7-million-barrel gain.

The market is also awaiting next week's oil output meeting of the Organisation of Petroleum Exporting Countries (OPEC), analysts said.

OPEC anticipates no change in oil production quotas at its next meeting, the cartel's head said on Thursday, predicting prices would remain within a 70 to 80 dollar range.

"At the next OPEC meeting, changes in policy will not be necessary," said Ecuadoran Oil Minister Germanico Pinto, the cartel's president, referring to the upcoming gathering on March 17 in Vienna.

He added that the US and global economic recoveries will result in increased demand for oil, but that it would not be reflected in higher prices.

Instead, he said prices would remain stable at a "reasonable level" of between 70 and 80 dollars a barrel.

OPEC's production ceiling was set at 24.8 million barrels a day in January 2009 after oil prices collapsed in the wake of the global economic crisis, and Pinto stressed it would remain unchanged.

ISLAMABAD: According to a report jointly conducted and presented by SAARC Chambers of Commerce and Asian Development Bank (ADB), the private sector could bring revolutionary boost to regional economy, Geo news reported.

The report also stated the regional economy could be bettered by abolishing hurdles in issuance of visas, provision of enhanced facilities for custom and removal of non-tariff barriers.

There are glowing chances of investment in sectors like Pharmaceutical, Textile, Information Technology and Tourism in this region housed by over 1.5 billion people, the report said.

According to report, visa-free travel, agreements in motor wheels, fast custom facilities on land routs may boost up regional economy unbelievably quick.

HONG KONG: Japanese Prime Minister Yukio Hatoyama's call Friday for a weaker yen boosted sentiment but fears of credit tightening in China lingered in a mixed day for Asian stocks.

Hatoyama told a session of parliament that the world's second largest economy was not as strong as the yen's value might suggest and called for "firm steps" to prevent it from strengthening further.

After the comments the dollar picked up against the Japanese unit, trading at 90.62 yen in Tokyo from 90.48 in New York late Thursday. The euro was also higher at 124.21 yen from 123.77.

The yen surged to 14-year highs against the greenback in November, hitting 86.28 to the dollar at one point. A strong yen hurts the competitiveness of Japanese exporters and erodes their overseas earnings when they are repatriated.

The Nikkei finished at its best level since January 21, with the index 0.81 percent, or 86.31 points, higher at 10,751.26.

Hatoyama's intervention comes as the government ups pressure on the central bank to take more action to shore up the economy and combat deflation.

The market will now focus on a Bank of Japan meeting next week that could herald further moves to boost the economy.

Sydney edged 3.9 points higher to 4,818.1. BHP Billiton fell 0.4 percent to 42.85 Australian dollars, Rio Tinto rose 0.5 percent to 75.96 and Newcrest Mining was up 0.9 percent at 34.21.

Seoul rose 0.37 percent, or 6.12 points, to 1,662.74.

However, Shanghai fell 1.24 percent, or 37.87 points, to 3,013.41 on increasing concern Beijing will further tighten monetary policy to cap the economy's strong growth after figures showed inflation continued to accelerate,

The consumer price index rose 2.7 percent year on year in February, up from 1.5 percent in January and higher than a forecast 2.4 percent rise.

The government has already ordered banks to increase their capital reserves three times since December -- effectively limiting the amount of money they can lend.

"The last time a hike in the reserve requirement ratio was announced on a Friday evening, so investors are remaining on the sidelines in case something similar happens later," Southwest Securities analyst Zhang Gang told Dow Jones Newswires.

Hong Kong ended marginally lower, dropping 18.46 points to 21,209.74.

Meanwhile China Friday hit back at US President Barack Obama after he called for Beijing to adopt a "market-oriented" exchange rate policy, increasing pressure for a stronger yuan.

The United States and the European Union, key trade partners for China, say the leadership has intentionally kept the currency low to boost exports.

"We believe the yuan exchange rate issue will not help shrink or increase our trade surpluses and deficits," People's Bank of China vice governor Su Ning said. "We don't agree with politicising the renminbi exchange rate issue."

"We also don't agree with a country taking its own problems and having another country solve them."

Oil was slightly higher, with New York's main contract, light sweet crude for April delivery, up nine cents to 82.20 dollars a barrel.

London's Brent North Sea crude was up eight cents to 80.36 dollars.

Gold closed at 1,112.00-1,113.00 US dollars an ounce in Hong Kong, up from Thursday's close of 1,107.00-1,108.00 dollars.

In other markets:

-- Singapore closed 0.26 percent or 7.45 points higher at 2,881.36.
United Overseas Bank rose 18 cents to 18.70 Singapore dollars, Keppel Corp rose 15 cents to 8.83 but Singapore Telecom dipped three cents to 3.14.

-- Taipei ended flat, edging down 1.33 points to 7,748.33.

Taiwan Semiconductor Manufacturing Co fell 0.98 percent to 60.80 taiwan dollars, while United Microelectronics Corp gained 0.30 percent to 16.75.

-- Jakarta lost 0.37 percent, or 10.01 points, to 2,666.51.

Profit-taking on recent rally offset news of Indonesia's ratings upgrade by Standard & Poor's.

"It's good news, because it confirms the good fundamentals of our economy, but shares are already overbought," a trader said.

Astra Agro gained one percent to 24,650 rupiah but Telkom fell 2.3 percent to 8,400.

-- Kuala Lumpur lost 0.77 percent, or 10.23 points, to close at 1,311.20.

Plantations giant KL Kepong fell 1.7 percent to 16.62 ringgit but national carrier MAS rose 3.2 percent to close at 1.96 ringgit.

-- Manila closed 1.68 percent, or 52.65 points, lower at 3,072.91.

Jomar Lacson of Campos, Lanuza and Co. said dealers were "reacting to the central bank's withdrawal of emergency liquidity-enhancing measures, which signals they'll soon raise interest rates".

On Thursday the bank said it had kept rates unchanged but would phase out from next week "crisis response" measures introduced during the meltdown.

Philippine Long Distance Telephone Co shed 4.48 percent to 2,560 pesos, while Universal Robina Corp. lost 3.26 percent to 22.25 pesos.

-- Wellington was flat, edging 1.69 points higher to 3,225.14.
Telecom fell 0.5 percent to 2.23 New Zealand dollars after a consortium announced plans to build a rival high-speed, submarine, fibre cable linking New Zealand, Australia and the US.

Fletcher Building ended up 0.5 percent at 8.15.

-- Bangkok closed 1.02 percent, or 7.39 points, higher at 733.34, despite demonstrations in the capital ahead of a mass anti-government rally this weekend.

Banpu added 4 baht to finish at 588 baht and PTT Plc rose 3 baht to 240.

-- Mumbai closed flat, edging down 1.34 points to 17,166.62.

The market ignored industrial output data showing a rise of 16.7 percent in January year on year, broadly in line with forecasts.

India's largest vehicle maker Tata Motors fell 1.22 percent or 9.4 rupees to 761.5.

   SINGAPORE: Oil prices rose in Asian trade Friday, lifted by signs of stronger demand as the world economy recovers from recession, analysts said.

New York's main contract, light sweet crude for April delivery, added nine cents to 82.20 dollars a barrel.

London's Brent North Sea crude for April was up eight cents to 80.36 dollars.

"There is a general consensus that the global economy is growing," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"What has also helped the bullish sentiment is the US oil inventory report," he added.

"Market participants are bullish at this point based on economic recovery optimism and are thinking ahead about the summer driving season raising gasoline demand in the US."

The US Department of Energy's weekly oil inventory report Wednesday showed a surprise drop in gasoline stockpiles, a key factor behind the large supply backlog, indicating strengthening demand.

Gasoline stockpiles tumbled 2.9 million barrels in the week to March 5, surprising the market as most analysts had expected an increase of about 100,000 barrels.

The department also said distillates were down 2.2 million barrels, far more than predictions of a 700,000-barrel drop.

US crude oil inventories meanwhile climbed 1.4 million barrels, which undershot analysts' consensus forecast for a 1.7-million-barrel gain.

The market is waiting for the results of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) next Wednesday, analysts said.

Qatar's OPEC minister has said he does not anticipate the cartel will change its official output quota at the meeting in Vienna.

KARACHI: Buying continued at Karachi Stock Exchange (KSE) pushing the benchmark KSE-100 Index further up by 95 points to 9,880.

The share market began upbeat and remained solid throughout the session, as local and foreign investors took positions in banking and energy sectors.

The market turnover was recorded at 200 million shares.

PTCL emerged as today’s volume leader which gained paisas 78 to close at Rs20.78.

On the other hand, KSE-30 share Index advanced by 100 points to finish the day at 10,361.

The market analysts are of the view that the major Index may surge beyond the psychological barrier of 10,000 this week.

GENEVA: Information on 24,000 HSBC customers with Swiss accounts has been stolen, the British bank said Thursday, potentially exposing large numbers of international clients to prosecution by tax authorities in their home countries.

A former IT employee of Swiss subsidiary HSBC Private Bank (Suisse) SA, identified by French authorities as Herve Falciani, stole the information between late 2006 and early 2007, the bank said. The accounts, held by individuals worldwide, were all opened before October 2006 and some 9,000 have since been closed.

"We deeply regret this situation and unreservedly apologize to our clients for this threat to their privacy," said Alexandre Zeller, chief executive of the Swiss subsidiary.

The bank said it has contacted the affected customers and doesn't believe the stolen data has or will allow any unauthorized person to access the affected accounts. The stolen information only affects accounts in Switzerland with the exception of its former subsidiary HSBC Guyerzeller Bank, it said.

However, the theft could leave some of those account holders exposed to prosecution by tax authorities.

In recent cases of data theft from banks in Switzerland and Liechtenstein, the information was offered to foreign governments seeking to track down nationals who avoided paying their taxes by hiding money in Swiss accounts.

The French government said last year it had obtained a list of 3,000 French HSBC clients compiled from "numerous sources" including the former HSBC employee - identified by prosecutors in the French city of Aix-en-Provence as Falciani.

France later agreed to return the files to Switzerland, who in turn handed "copies of a significant portion of the data" back to the bank on March 3, HSBC said. "Based on the facts it would appear that the French authorities have copies and the Swiss authorities have copies," HSBC spokesman Jezz Farr said.

The bank said French authorities had informed their Swiss counterparts that the data they still hold would "not be used inappropriately." It remained unclear whether that means France will not use the data to prosecute tax evaders.

Farr said the theft affected customers worldwide. "The accounts were held in Switzerland but the client base is international," he said.

HSBC PLC said offering private banking services for rich customers remains "a core business" of the group, which has about 100,000 private banking clients.

Shares in HSBC were down 0.05 percent at 7.01 pounds ($10.54) on the London exchange.

WASHINGTON: The US posted its largest budget deficit on record in February as the government boosted spending to help revive the economy.

The excess of spending over revenue increased to $US221 billion last month, compared with a deficit of $US194 billion in February 2009, according to Treasury Department figures released today in Washington.

In fiscal 2009 that ended in September, the shortfall reached a record $US1.4 trillion.

A deficit that will probably exceed $US1 trillion for a second year underscores the challenges facing the Obama administration and Congress as they seek to preserve the recovery, spur job growth and pass health care reform.

The loss of 8.4 million jobs the last two years has been limiting tax revenue, while stimulus efforts such as the first-time homebuyers credit have added to expenses.

"It's mostly the recession if you look at the deficit numbers," said David Wyss, chief economist at Standard & Poor's in New York. To finance the shortfalls, "we're borrowing a lot of money from abroad. At some point, foreign investors are going to be unwilling to fund it," he said.

The February deficit was in line with the $US222 billion economists anticipated, based on the median of 31 estimates in a Bloomberg News survey. Projections ranged from shortfalls of $US180 billion to $US225 billion.

The non-partisan Congressional Budget Office, in a report issued March 5, projected a deficit of $US223 billion for February.

Spending for February increased 17 per cent from the same month a year ago, to $US328.4 billion. Revenue and other income rose 23 per cent to $US107.5 billion, according to the Treasury.

 
 HONG KONG: Investors Thursday picked up bargain stocks, lifting most markets into the black after they sank earlier in the day when China revealed consumer prices had jumped in February.

Trade had also been weighed by news that the Japanese economy did not grow as much as previously thought in the final quarter of 2009.

China's National Bureau of Statistics said the consumer price index, the main gauge of inflation, rose 2.7 percent year-on-year last month, faster than the 1.5 percent rise recorded in January.

The news led Chinese and Hong Kong markets lower before they rebounded thanks to dealers buying up cheap stocks.

Hong Kong rose 19.91 points to close at 21,228.20 while the Shanghai Composite Index, which covers both A and B shares, added 2.35 points to 3,051.28.

Data also showed new lending slowed to 700.1 billion yuan (102 billion dollars) in February, from the previous month's 1.39 trillion yuan as Beijing tries to restrict liquidity in a bid to put the brakes on the economy.

The figures have caused concern there will be further restrictions.

"While we continue to believe that policy normalisation/tightening should be gradual and measured this year, another reserve requirement ratio hike is likely imminent," Morgan Stanley analyst Wang Qing told Dow Jones Newswires.

China has taken steps to calm inflationary pressures by ordering banks to increase their capital reserves three times since December -- effectively limiting the amount of money they can lend.

And Qian Qimin from Shenyin Wanguo Securities said: "The tightening concerns are still lingering."

Sydney closed 0.12 percent, or 5.8 points, at 4,814.2 after data showed unemployment rose to 5.3 percent in February from January's revised 5.2 percent.

BHP Billiton eased 0.53 percent to 43.01 Australian dollars, while Rio Tinto edged up 0.27 percent to 75.55.

Seoul closed 0.34 percent, or 5.62 points, lower at 1,656.62 after South Korea's central bank held the key interest rate at a record low 2.0 percent for a 13th straight month.

Markets broadly ignored upbeat US data showing wholesale inventories unexpectedly fell 0.2 percent in January. Analysts expected inventories to rise 0.2 percent.

The government report also said sales by US wholesalers in January rose 1.3 percent to a seasonally adjusted 346.7 billion dollars.

Despite data showing Japan's economy grew 0.9 percent in October-December from the previous quarter, down from an initial estimate of 1.1 percent, the Nikkei picked up due to a weaker yen.

Tokyo rose 0.96 percent, or 101.03 points, to 10,664.95

Exporters got a boost from a weaker yen in New York trade on Wednesday.

Sony advanced 1.9 percent to 3,440 yen and Honda rose 0.77 percent to 3,270 yen.

The dollar had jumped to 90.49 yen in New York late Wednesday from 89.96. However, it retreated slightly in Asia to 90.35.

The euro rose to 1.3646 dollars in afternoon trade after Beijing released the figures, rebounding from earlier lows, although it was still down from its level of 1.3657 in New York late Wednesday.

The euro declined to 123.29 yen from 123.60.

The Reserve Bank of New Zealand kept its rate unchanged, but signalled the first rise was likely mid-year. Thailand kept its rates steady Wednesday citing political uncertainty.

Oil was lower, with New York's main contract, light sweet crude for April delivery, 53 cents down at 81.56 dollars a barrel.

London's Brent North Sea crude fell 49 cents to 79.99 dollars.

Gold closed at 1,107.00-1,108.99 US dollars an ounce in Hong Kong, down from Wednesday's close of 1,122.00-1,123.00.

ISLAMABAD: Reiterating that Pakistan-Afghanistan ties were important for regional peace, security and development, the two countries agreed to develop communications network, boost trade to 15 billion by 2015 and enhance cooperation in education, agriculture and energy sector.

A Joint Declaration issued at the end of two-day visit of President Hamid Karzai on "Next Steps in Afghanistan-Pakistan Comprehensive Cooperation" expressed determination by the two sides to realize the full potential of their vast human and natural resources for the progress and prosperity of their peoples.

Pakistan and Afghanistan agreed to evolve joint strategies for early implementation of trans-Afghan energy projects, with particular focus on CASA-1000 and Turkmenistan-Afghanistan-Pakistan Gas Pipeline.

The Joint Declaration signed by the two foreign Ministers Makhdoom Shah Mahmood Qureshi and Dr. Zalmai Rassoul agreed on developing a roadmap for strengthening road, rail and air connectivity and upgrade existing facilities.

The two countries agreed to attach priority to undertaking completion of Peshawar-Jalalabad Expressway and completing feasibility study of Peshawar-Jalalabad rail link.

Pakistan and Afghanistan also agreed to undertake joint studies on promotion and facilitation of multi-modal transport to operationalize transport corridors on mutually agreed routes and to expand aviation links and extend bus services to additional destinations.

They also agreed to develop plans of action for customs harmonization and trade facilitation to facilitate bilateral trade between Afghanistan and Pakistan and to optimally utilize the natural comparative economic advantage of the two countries so as to enhance bilateral trade to $ 5 billion by the Year 2015.

The two sides also agreed to establish a Silk Route CEOs Forum, and establish Pakistan-Afghanistan Reconstruction Consortium, pool public and private corporate resources for reconstruction and development.

It was also decided to explore establishment of a Joint Investment Company to undertake joint development projects, including initiatives to develop region's vast mineral and hydel wealth and also to consider setting up Economic and Industrial Zones.

The two countries decided to enhance the number of scholarships for Afghan students in Pakistani educational institutions from the current 1000 to 2000 and to make special arrangements for female Afghan students.

It was also decided to set up an Institute on Management, Business Administration and Faculty Training in Afghanistan.

Pakistan and Afghanistan agreed to cooperate closely in capacity building of institutions. In this context, Pakistan offered extending assistance to Afghanistan, in setting up new capacity building institutions and upgrading the existing ones, in Afghanistan.

On agricultural sector the two agreed to focus on food processing, consider creation of a Pakistan-Afghanistan Food Bank to strengthen food security, initiate joint research in agriculture and crops substitution programmes.

They also decided to initiate comprehensive dialogue on environmental protection and mitigating impact of climate change.

Pakistan and Afghanistan also agreed to further strengthen people to people contacts, and promote exchanges among intellectuals, parliamentarians, journalists, academia and students.

It was agreed to establish close links among the media including print, radio and television of the two countries and to promote cultural exchanges.

The joint declaration acknowledged the special bond "grounded in history and geography and spiritual, cultural, and civilizational affinities that impart a compelling sense of shared destiny."

The two countries also reaffirmed their mutual commitment to respect each other's sovereignty, independence and territorial integrity, consolidate good neighbourly relations, and uphold the principles of the United Nations Charter.

The statement also recalled the Kabul Declaration on Good Neighbourly Relations of 22 December 2002 and the Joint Declaration on Directions of Bilateral Cooperation signed between Pakistan and Afghanistan on 6 January 2009 in Kabul.

KARACHI: The Karachi Stock Exchange (KSE) Wednesday witnessed mixed trend after a few bullish sessions as KSE-100 Index inches down by 2 points to close at 9,785.

Investors opted for profit taking today after the bull-run seen by the share market in the past few days. However, buying in cement and banking sectors stopped the market from a steep slide.

The trade volume stood at 127.8 million shares.

On the other hand, KSE-30 Index gained 4 points to finish the day at 10,262.

 ISLAMABAD: Heads of Agreement about Iran-Pakistan gas pipeline project is likely to be signed on March 16, Inter-State Gas Company Managing Director Naeed Sharafat told the National Assembly Standing Committee on Petroleum Wednesday.

Sheikh Waqas Akram chaired the meeting.

The committee was told that there was complete agreement on four of the five-point agreement about the Iran-Pakistan gas pipeline pact.

On this occasion, committee member Hanif Abbasi said that he would himself get a case registered against the Sui Gas officials if people grievances about gas bills were not addressed.

He said that people were paying Rs19.73 per litre oil as tax but nothing was being charged from the Nato for delivery of oil.

 KARACHI: In February, overseas Pakistanis sent home $588.8 million, down 8.2% from a year earlier, the State Bank of Pakistan (SBP) said in a statement Wednesday.

Pakistanis living overseas sent home about $5.78 billion in the July-February period, up nearly 18% from a year earlier, the statement said.

The monthly average remittances for the July-February period rose to $723.3 million from $614.8 million, the central bank said.

   KARACHI: The production of oil refineries witnessed a decline of 8.6 per cent in the current financial year whereas the production picked up in the month of January.

According to figures released by oil industry, the average production capacity of oil refineries remained limited to 61 per cent in the current fiscal.

Attock Refinery utilized 76 per cent of its production capacity; Pakistan Refineries 44 per cent; National Refinery 64 per cent and; Bosicor Refinery 46 per cent.

  LONDON: World oil prices dipped on Wednesday before publication of a closely-watched report on energy inventories in the United States, the world's biggest energy consuming nation.

New York's main contract, light sweet crude for April delivery, dropped 12 cents to 81.37 dollars a barrel.

London's Brent North Sea crude for April delivery eased seven cents to stand at 79.84 dollars per barrel.

Analysts said trading was volatile as investors waited for signs of firmer demand in the United States after an industry report showed a surprise build-up of crude stocks indicating weaker demand.

The American Petroleum Institute (API) said on Tuesday that US crude stockpiles for the week ended March 5 rose 6.5 million barrels. Analysts polled by Platts had anticipated an increase of 2.1 million barrels.

"The API reported quite bearish results yesterday. The crude build-up was larger than expected," said Serene Lim, a Singapore-based oil analyst with ANZ bank.

She said the focus would now be on a report by the US Department of Energy on oil inventories to be released later Wednesday for indications on energy demand.

"The market currently lacks direction and has been moving in a narrow range between 80 and 82 dollars," said Ken Hasegawa, manager for energy risk at Newedge Japan brokerage in Tokyo.

Oil also fell in value on Tuesday, under pressure from a stronger greenback, which makes dollar-priced crude more expensive for buyers using weaker currencies -- and tends to weigh on demand.

KARACHI: The State Bank of Pakistan (SBP) bought back 22.70 billion rupees ($268.51 million) of treasury bills and government bonds on Wedneday in 3-day reverse-repo contracts at 12.04 percent to inject funds into the money market.

 ISLAMABAD: The Federal Board of Revenue (FBR) announced special privileges the companies working in Special Economic Zones for developments and establishing industries there.

The FBR allowed corporate income tax holiday for a period of 10 years for the developers of Special Economic Zones (SEZs) in Pakistan and corporate income tax holiday for 5 years for the industrial projects to be established in such zones.

According to SRO 123 (i) 2010 issued here the FBR has amended the second schedule to the Income tax Ordinance, 2001 in this regard. A new section 126E has been inserted in the ordinance stating that corporate income tax holiday for a period of five years for the projects from the date of start of the commercial operations, and for developers of the zone for a period of 10 years from the date of start of development activity in the SEZ as announced by the federal government.

The SEZs are being established in the country with private investment and the government is improving its fiscal incentive regime to attract foreign investment in export-oriented industries.

An important achievement of Ministry of Investment in this period is that the various foreign potential companies are showing their keen interest to explore the untapped resources especially in power generation, oil and gas, agri-farming, affordable housing, infrastructure and engineering sectors.

Realising the central importance of foreign direct investment (FDI) to economic development, the present government has taken wide-ranging steps to liberalise its inward investment regime and have succeeded in attracting substantial amount of foreign investment.

The government has decided to make fiscal incentives more competitive to determine development standards for the special industrial and economic zones of the country to make Pakistan more attractive for foreign investors.

A task force is to be constituted which would not only determine the standards but would also provide mechanism for the implementation of the tax incentives package to be available in these SEZs including China-Pakistan Industrial and Economic Zones (CPEZ).

The task force would coordinate implementation of the policy action plan for the development of SEZ. Task force would be chaired by the adviser to prime minister on finance and its members would include officials from FBR, Ministry of Commerce; Ministry of Industries; Board of Investment (BoI) and chief secretaries of all the four provinces.

The agency responsible for administration of SEZ’s policies and development of implementation regulations will be a special directorate affiliated with the BoI.

The role of BOI will be to facilitate the investors and SEZ’s developers with the help of relevant independent service organisations working as one coherent team. SEZs Act would be formulated once the task force takes shape.