BISINISS WORLD NEWS

Updated at: 1807 PST,  Friday, April 30, 2010  KARACHI: Government will have to provide subsidy amounting to Rs1 billion per month in the wake of gas cut to the industry and subsequent rise in the price of fertilizer. Sources of fertilizer industry told Geo News that fertilizer companies across the country increased the price of fertilizer by Rs50 to Rs75 per bag. As a result the rate of 500 kilogram bag has climbed to Rs865 from Rs840. They said about 300,000 tons fertilizer may have to be imported following the gas cut to the fertilizer industry. This could increase the total import bill of the country by 22.5 million dollars. Government will have to provide subsidy amounting to Rs1 billion per month to the farmers for the import of fertilizer.

Updated at: 1909 PST,  Friday, April 30, 2010  KARACHI: Karachi Stock Exchange (KSE) witnessed more selling Friday, the benchmark KSE-100 Index lost 25 points to close at 10,429 while trade volume stood at five-week low. The share market carried forward yesterday’s negative trend at the start of the opening session today and remained dominant throughout the two sessions. Sound financial results of Fauji Fertilizer Company failed to fuel investment and switch the stock market into positive zone. Today’s market turnover stood weak at 96.8 million shares – lowest since 24 March 2010. PTCL remained the volume leader at Rs21.50, stronger by paisas 21. Meanwhile, KSE-30 Index slid 76 points to finish the day at 10,481.

SINGAPORE: Oil prices extended gains in Asian trade Friday on optimism over the US economic recovery following positive jobs data along with easing global fears about Greece's debt crisis, analysts said.

New York's main contract, light sweet crude for June delivery, rose 39 cents to 85.56 dollars a barrel. London's Brent North Sea crude for June delivery was up 28 cents to 87.18 dollars per barrel. Prices were supported by rising equity markets in Asia after a rally on Wall Street following encouraging US company results.

HONG KONG: Asian stocks rallied on Friday at the end of a tough week, with sentiment boosted by hopes that a bailout for debt-laden Greece is in sight. The news also lifted the euro from its one-year lows, sending the yen down to the benefit of Japanese exporters.

Tokyo shares were 1.35 percent higher by the break, Hong Kong up 1.30 percent and Singapore advanced 0.68 percent. Investors followed a rally on Wall Street, where the Dow rose 1.10 percent on the news out of Europe. Athens has called on the EU and IMF to activate a three-year rescue package worth 45 billion euros this year as it faces a May 19 deadline to repay nine billion euros in old debts.

The euro, which had hit a year low of 1.3202 dollars on Wednesday, bought 1.3242 dollars in quiet Tokyo morning trade, compared with 1.3244 dollars in New York late Thursday. It was also trading at 124.59 yen against 124.46. The dollar was trading at 94.07 yen in line with New York levels.

 BERLIN: The German unemployment rate declined significantly to 8.1 percent in April, reflecting a stronger economic recovery, according to government figures released Thursday.

The German unemployment rate declined significantly to 8.1 percent in April, reflecting a stronger economic recovery, according to government figures released Thursday.

Germany's Federal Labor Agency said some 3.4 million people were trying to find jobs, 162,000 fewer than in March. The figure compared with 8.5 percent the previous month.

On a seasonally adjusted basis, the unemployment rate dropped to 7.8 percent, which registered the fifth consecutive monthly decline and the sharpest fall since early 2008.

"There was an unexpectedly strong spring upsurge on the labor market in April. The current trend is encouraging," Labor Agency chief Frank-Jurgen Weise said.

He attributed the unemployment decline to "active labor market policies," referring to the government-backed short work program, which allows companies to cut workers' hours instead of layoffs. The scheme has been extended until March 2012.

The rebounding labor market could be viewed as another sign of recovery in Europe's biggest economy, after Germany's consumer confidence and income expectations for May rose strongly, according to reports released Tuesday by research group GfK.

As exports regained vitality in March and April, Germany's economy began to revive after stagnating during a unusually cold and long winter. The government predicted the country's economy would grow 1.4 percent in 2010, and 1.6 percent in 2011, after a severe 5-percent contraction in 2009, the largest slide since World War II.

Updated at: 1957 PST,  Thursday, April 29, 2010  KARACHI: Correction at the local bourse continued on Thursday, taking away 64 points from the benchmark KSE-100 Index which closed at 10,454. The Index started off green and witnessed the intra-day high of 10,579 points. But later off-loading in energy and banking sectors by the investors sucked away earlier gains. The trade volume was weak and stood at 110 million shares. PTCL emerged as today’s volume leader at Rs21.48, up by paisas 45. Meanwhile, KSE-30 Index plunged by 81 points to finish the day at 10,557.

Updated at: 1957 PST,  Thursday, April 29, 2010
 ISLAMABAD: The Asian Development Bank (ADB) will spend $40 million in Pakistan to promote energy-saving light bulbs, the bank said on Thursday, as the country struggles to ease chronic power cuts.

Pakistan is facing a shortfall of between 4,000 and 5,000 MW of power after water levels fell sharply at two major dams and is forced to cut power supplies for several hours a day, angering the public.

Under the agreement, the first tranche of the loan will be used to promote energy efficiency with the use of cost-effective compact fluorescent lamps (CFLs) projects, the bank said.

The project would help reduce power demand by 1,100 MW and ease the power cuts, said Rune Stroem, the bank's country director in Pakistan.

"Energy efficiency is a strategic priority, and is the quickest way of bridging the energy gap," he said in a statement.

Thirty million high-quality energy-saving light bulbs will be distributed free to residents nationwide, the bank said.

The ADB investment is part of $1.18 billion loan for a 10-year energy efficiency investment programme for Pakistan.

Last year, the bank approved $780 million out of the multi-tranche facility.

 BERLIN: The German unemployment rate declined significantly to 8.1 percent in April, reflecting a stronger economic recovery, according to government figures released Thursday.

The German unemployment rate declined significantly to 8.1 percent in April, reflecting a stronger economic recovery, according to government figures released Thursday.

Germany's Federal Labor Agency said some 3.4 million people were trying to find jobs, 162,000 fewer than in March. The figure compared with 8.5 percent the previous month.

On a seasonally adjusted basis, the unemployment rate dropped to 7.8 percent, which registered the fifth consecutive monthly decline and the sharpest fall since early 2008.

"There was an unexpectedly strong spring upsurge on the labor market in April. The current trend is encouraging," Labor Agency chief Frank-Jurgen Weise said.

He attributed the unemployment decline to "active labor market policies," referring to the government-backed short work program, which allows companies to cut workers' hours instead of layoffs. The scheme has been extended until March 2012.

The rebounding labor market could be viewed as another sign of recovery in Europe's biggest economy, after Germany's consumer confidence and income expectations for May rose strongly, according to reports released Tuesday by research group GfK.

As exports regained vitality in March and April, Germany's economy began to revive after stagnating during a unusually cold and long winter. The government predicted the country's economy would grow 1.4 percent in 2010, and 1.6 percent in 2011, after a severe 5-percent contraction in 2009, the largest slide since World War II.

KARACHI: Correction at the local bourse continued on Thursday, taking away 64 points from the benchmark KSE-100 Index which closed at 10,454. The Index started off green and witnessed the intra-day high of 10,579 points. But later off-loading in energy and banking sectors by the investors sucked away earlier gains. The trade volume was weak and stood at 110 million shares. PTCL emerged as today’s volume leader at Rs21.48, up by paisas 45. Meanwhile, KSE-30 Index plunged by 81 points to finish the day at 10,557.

ISLAMABAD: Chairman Federal Board of Revenue (FBR) Sohail Ahmad said Value Added Tax (VAT) will be implemented from July 2010 whereas it will not increased the inflation. Talking to media here, Shoail said that FBR has completed the preparations for the implementation of VAT whereas it will be implemented with legal consultations. He said VAT is an alternative of General Sales Tax and it will not increase the inflation. About sales tax on sugar will reduce revenues upto Rs.2 billion.

 SINGAPORE: Oil prices slipped slightly in Asian trade Thursday, losing some of their steam from Wednesday as investors’ awaited further news on Europe's debt crisis and its impact on the commodity.

New York's main contract, light sweet crude for June, eased nine cents to 83.13 dollars a barrel. Brent North Sea crude for June delivery was down nine cents to 86.07 dollars per barrel.

Traders were eagerly watching Europe's reaction to Greece's mounting difficulties as debt markets increasingly punish Athens, dealers said.

SHANGHAI: The International Monetary Fund warned Thursday Asian economies were at risk of overheating as strong capital inflows fan inflationary pressures and raise the risk of damaging bubbles. The IMF urged regional leaders to return to "more normal" monetary policies after the global financial crisis, and increase the flexibility of their exchange rates to counter speculative funds flowing into their economies. "Brighter economic growth prospects and widening interest rate differentials with advanced economies are likely to attract more capital to the region," the IMF said in its latest report on the regional outlook. "This could lead to overheating in some economies and increase their vulnerability to credit and asset price booms with the risk of subsequent abrupt reversals." The IMF raised its growth forecasts for Asia to 7.1 percent for both 2010 and 2011, higher than its prediction last week when it estimated regional economies would expand an average 6.9 percent this year and 7.0 percent next. But the Fund warned export-driven Asia remained vulnerable to a slower-than-expected recovery in the West, and urged governments to reduce their reliance on overseas shipments and boost domestic consumption. The IMF said Asian policymakers need to safeguard against the build-up of imbalances in asset and housing markets caused by "excess liquidity", and one way to do this was to adopt more flexible exchange rates. "Letting the exchange rate appreciate can forestall short-term inflows," the Fund said, without specifically referring to China. "Without more currency appreciation, the pressure to sterilise the impact on money supply will continue." The IMF said last week a stronger yuan was "essential" for both the Chinese and world economies, heaping more pressure on Beijing to revalue the currency, which has been effectively pegged at 6.8 to the dollar since mid-2008. Critics say the policy has given Chinese manufacturers an unfair advantage by making their exports cheaper.

Updated at: 1150 PST,  Sunday, April 25, 2010  KARACHI: An interim arrangement has been reached between traders and the Sindh government to close markets and shopping centres at 9pm rather than at 8pm. However, this adjustment is only for two days, ending on Monday, while a final decision will be taken in a meeting of traders and Sindh Chief Minister Qaim Ali Shah. The CM will also meet the prime minister to get his approval for any final decision. The city’s trade organizations and the provincial government held a meeting at the CM House, where the traders said they would close markets at 9pm of their own accord until the government decides anything in this connection. The traders said the air-conditioners and other unnecessary electric equipments would be switched off at 8pm. They said the government assured them of opening banks on Saturdays and the government will issue a notification in this connection.

 Updated at: 0229 PST,  Sunday, April 25, 2010
 ISLAMABAD: The democratic government of Pakistan has blown another hard hit to the already crippled poor people of Pakistan that is undergoing electricity shortfall, inflation, unemployment and etc. by giving green signal to International Monetary Fund (IMF) of imposition of Value Added Tax (VAT) and 6 percent raise in electricity tariff, Geo news quoted Finance Ministry sources as saying.

Finance Ministry sources told Geo news, government has sent IMF fourth supplementary, assuring the organization to raise 6 percent electricity tariff from July 1 and implementation of VAT from August 1.

Updated at: 1847 PST,  Saturday, April 24, 2010
 KARACHI: The prices of various pulses have soared to the record level of up to Rs60 to Rs180 per kilogram.

The prices of pulses have sky-rocketed across the country. The price of Daal Mong has climbed from Rs90 to Rs120 per kg; Mash from Rs150 to Rs180; Masoor from Rs110 to Rs125 and; Daal Chana from Rs55 to Rs60 per kg.

Wholesale sources have cited rise in international rates of pulses as the reason for increase in the local price of the commodity.

Updated at: 1420 PST,  Saturday, April 24, 2010  ISLAMBAD: The government has formally requested UAE telecom giant Etisalat to de-list the private and under-litigation properties in an attempt to close the transaction of the remaining overdue proceeds of $799 million. Etisalat holds management control of PTCL after buying its 26 per cent shares for $2.6 billion in a privatisation deal in 2006. Federal Minister for Privatisation Senator Waqar Ahmed Khan on Friday, while giving go a head signal to start privatisation of three main public entities in financial and power sectors, was informed that recently another 99 properties in Punjab have been transferred to Pakistan Telecommunication Company Limited (PTCL). Chairing the privatisation commission board meeting he approved initiating the privatisation process of Jamshoro Power Company (JPC), SME Bank, and Heavy Electrical Complex (HEC). The meeting was informed that World Bank has shown interest to fund and rehabilitate the technical potential of Jamshoro Power Company (JPC) before taking it to the market, as was done in the case of Kot Addu Power Company transaction. “We should seek approvals at a broader forum for all transactions,” ssaid the minister urging the privatisation board members to maintain transparency during the process. For assessing the real value of the entities on the Privatisation Program, third party valuation should be carried out, and all phases of the process should be conducted in an open, fair, and transparent manner to the satisfaction of all stakeholders, he directed. The PC Board desired to have a presentation from Finance Division regarding the utilisation of privatisation proceeds. The Board also reviewed the status of the National Power Construction Company (NPCC) and decided for the revaluation of the entity. The PC Board reviewed the status and progress of various other ongoing and upcoming transactions. The meeting also reviewed the progress made for the implementation of Benazir Employees Stock Option Scheme (BESOS) and decided to speed up the BESOS distribution certificates in the remaining entities and establish BESOS Trusts in the remaining entities. So far under BESOS more than 40,000 workers of eight entities have received 12 per cent GoP shares unit certificates. This scheme is effective from August 14, 2009.

Updated at: 1214 PST,  Saturday, April 24, 2010
 ISLAMABAD: The government of Pakistan has assured the officials the International Monetary Fund (IMF) of increasing power tariffs by six percent from April 1st and implementing Value-added Tax (VAT), Geo News reported Saturday.

The Finance Ministry and the IMF officials held discussions on key issues regarding the Budget 2010/11 (July-June) and progress towards the implementation of the Value-Added Tax (VAT) from July 1 in the fifth review (March-June 2010) in May.

The sources privy to Finance Ministry told Geo News that the government has sent to the IMF the fourth Supplementary Memorandum of Economic and Financial Policies and Technical Memorandum of Understanding between the government of Pakistan and the IMF review mission.

Earlier, officials of the Finance Ministry and the IMF had discussed the outstanding issues, including timing of the fifth review and potential combining of reviews, electricity and circular debt, commodity operations, wheat procurement and confirmation from the Federal Board of Revenue on the Value-Added Tax and tax administration reform in the recently concluded fourth review in Islamabad.

The sources said sending the IMF fourth Supplementary Memorandum will help Pakistan to get $1.20 billion from the Fund. Also, the payment of Rs116 billion in circular debts in energy sector by May has been assured.

Under IMF agreemnent, the government was bound to increase power tariffs by six percent from April 1st; however, the decision was deferred on public pressure.

But, the government has now finally caved in to the IMF demand.

Under the memoranda, officials of the Finance Ministry and IMF deliberated at length on the recent economic developments, policies for the remaining part of 2009/10 including fiscal, monetary and exchange rate policies and financial sector.

The measures of submission of VAT Act to Parliament and consistent provincial VAT acts to provincial assemblies will be initiated in the first phase for consideration of the board of the fourth review, according to the Supplementary Memorandum.

It also agreed that the review of the VAT law, including zero-rating and exemptions is expected to be completed by the finance and revenue committees of parliament by the end of the current month.

The ceiling on the consolidated overall budget deficit, excluding grants will be adjusted downwards by up to Rs58.97 billion (equivalent to $0.71 billion valued at Rs83 per $1) for the shortfall in Tokyo-related disbursements, excluding multilateral sources in rupee terms in excess of Rs117.94 billion, it said.

The quasi-fiscal problems with the commodity operations and the stock of outstanding wheat commodity credits will be reduced by at least Rs95 billion between January 31 and April 1, the start of the 2010 procurement season, to avoid crowding out the private sector, said the document.

However, losses for government procurement agencies will be covered from the budget and would not be left to accumulate on the agencies’ books.

“For the 2010 procurement season, we will remain within our announced procurement target of 6.5 million tons,” it added.

About the fiscal policy, it said that the macroeconomic backdrop for the programme remains largely unchanged. Fiscal risks are a threat to macroeconomic stability, but the fiscal deficit target for 2009/10 will be adjusted to 5.1 per cent of the GDP.

Regarding revenue, it said, tax collection is being monitored and will be reviewed at the end of the third quarter for additional measures, if needed. For the expenditure measures, the Supplementary Memorandum hoped that the government has adequate provision for security and IDP outlays and, if needed, it will meet any additional fiscal shocks through additional restraint of non-priority development spending.

About the unmanageable issue of electricity subsidies, the document revealed that the government is making progress towards eliminating electricity tariff differential subsidies by August. It is also taking steps to clear the remaining stock of circular debt in the electricity sector, it added.

Updated at: 1023 PST,  Saturday, April 24, 2010
 BRUSSELS: The European Commission is moving to give Pakistan tariff-free access to the European Union for its exports, part of an EU effort to bolster the economy of the strategically important country, EU diplomats said.

The commission's proposal, which is still being discussed internally, is part of the EU's military and diplomatic project for Afghanistan. EU governments, led by the U.K., view economic growth and stability in Pakistan--where a number of the militant groups fighting coalition forces in Afghanistan are based--as crucial to fighting terrorism and drug smuggling in Afghanistan.

The proposal would change an EU program that gives tariff-free access to EU markets for poorer countries. Pakistan currently doesn't qualify for the program, known as the Generalized System of Preferences +, because its exports represent too high a proportion of total EU imports.

The commission plan would allow countries that account for up to 1.5% of total EU imports to qualify for GSP+, up from the current threshold of 1%, EU diplomats say.

Pakistan's exports, largely textiles, now account for about 1.4% of imported EU goods that qualify for the GSP+ program, an EU diplomat said.

Pakistan would also have to agree to sign several international treaties, including one on human rights, to qualify for the program.

The EU and Pakistan were supposed to hold a summit this week in Brussels, but the meeting has been postponed due to flight cancellations caused by the volcanic ash cloud.

The changes would take effect in 2012 and will need to be approved by EU national governments at the European Council and the European Parliament.

Updated at: 1828 PST,  Friday, April 23, 2010  KARACHI: The Karachi Stock Exchange's benchmark 100-share index (KSE-100) ended lower on Friday as investors were cautious after selling by foreigners the previous day, dealers said. KSE-100 fell 0.08 percent, or 8.12 points, to end at 10,607.03. Volume was 153.86 million shares compared with 185.71 million traded on Thursday. "Net selling by offshore investors on Thursday resulted in range-bound activity throughout today's session," said Farhan Seth, an analyst at Topline Securities Ltd. According to official data, foreigners sold shares worth a net $1.61 million on Thursday. Banks will be closed on Saturdays as part of measures to cut state electricity consumption.

 Updated at: 1516 PST,  Friday, April 23, 2010
 KARACHI: Karachi Electric Supply Corporation (KESC) and Pakistan State Oil (PSO) inked and accord for the supply of furnace oil for next 10 years.

According to KESC sources, CEO KESC Tabish Gohar and MD PSO Irfan Qureshi have signed the agreement in a function held at PSO head office.

Sources revealed that PSO will supply 33,000 Metric Tonnes to KESC on monthly basis whereas monthly credit limit of KESC has also extended. KESC spokesman has confirmed the deal and said details will be provided to media through a press release.

WASHINGTON: At least 150 US companies facing threat of bankruptcy as Obama administration has announced amendments in financial reforms to tackle the situation. US President Barack Obama said in a speech that the United States was doomed to repeat its economic crisis if his financial reform bid failed, calling financial institutions to "join, not fight" the drive. In his speech, Obama outlined the need to push forward the financial industry reform, explaining at a speech in New York that the nation will be at risk if the US keeps the current framework. He seeks to swiftly push regulatory reform into law. "It is essential that we learn the lessons of this crisis, so we don't doom ourselves to repeat it," Obama said. Obama said he believed in the "power of the free market," but a free market was never meant to be a free license to take whatever you can get, however you can get it. And he urged Wall Street bosses to halt armies of lobbyists the White House says are being paid millions of dollars by the industry to hinder reform.

SINGAPORE: Oil prices were mixed in Asian trade Friday as sagging demand in the United States, the world's largest energy consuming nation, limited the market's gains, analysts said. New York's main contract, light sweet crude for delivery in June, was up five cents to 83.75 dollars a barrel. Brent North Sea crude for June fell two cents to 85.65 dollars. The market was weighed down by a report Wednesday from the US Department of Energy (DoE) which showed an unexpected increase in crude and product stocks, analysts said. The rise indicates weaker demand as the world's biggest economy struggles to recover from its worst economic downturn since the 1930s.

 SAO PAULO: One of Brazil's biggest states, Minas Gerais, on Thursday ordered a ban on the sales of Toyota Corollas, saying the best-selling car presented a safety threat because of an acceleration problem.

"Some vehicles present problems of continual acceleration, putting in danger the lives of occupants," the state's public ministry said in a statement.

The Minas Gerais ministry said nine Toyota Corollas in the state had shown accelerator problems that the Japanese auto giant said were caused by badly-installed floor mats on the driver's side.

"Sales of the model will only be authorized once the manufacturer has taken measures to change the original factory mat in all vehicles in circulation," it said, in effect demanding Toyota recall all Corollas.

The ban compounded Toyota's worldwide problems. On Thursday, the ratings agency Moody's downgraded the company's credit rating, citing uncertainty over "product quality" following mass recalls of several models.

Toyota has recalled around 10 million vehicles internationally due to accelerator and brake defects.

US authorities in February opened an investigation into problems with the Corolla, based on complaints that the car could accelerate suddenly. At least 34 deaths in the United States have been blamed on the problem.

Toyota faces at least 97 US lawsuits seeking damages for injury or death linked to sudden acceleration and 138 class action lawsuits from American customers suing to recoup losses in the resale value of Toyota vehicles.

The Corolla is one of the top-selling cars in the world, with more than 30 million sold since it first rolled out of Toyota's factories in the 1960s.

ISLAMABAD: Federal Board of Revenue has collected Rs 70 billion during 1st April to 16th, Geo News reported. A target of Rs 121 billion has been set for the Month of April and till 16th April more than Rs 979 billion have been collected during the fiscal year 2009-10. Rs 909.60 billion were collected against the target of Rs 938.70 billion set for July 2009-March 2010. FBR was to collect Rs 1059.70 billion till April 31st.

 KARACHI: The Karachi Stock Exchange's benchmark 100-share index (KSE-100) ended lower Thursday because of selling in oil shares following a drop in international oil prices.

KSE ended 0.27 percent, or 28.36 points, lower at 10,641.52 points on turnover of 137.05 million shares.

Oil and Gas Development Co Ltd ended 0.44 percent lower at 247.20 rupees.

KARACHI: The benchmark index of Karachi Stock Exchange (KSE) posted massive gains of 1300 points from January to April, Geo News reported Tuesday. According to the KSE statistics, the KSE100-index stood at 9400-point level on January 1st, which burgeoned to 10700 points now. According to market analysts, the recent bullish trends have been given spur by the foreign investors who resorted to buying at the Market. This positive trend can last till June, they forecasted.

 HONG KONG: Most global markets rebounded modestly Tuesday, following Wall Street higher as financial stocks recovered from a sell-off prompted by the U.S. government's fraud case against Goldman Sachs.

Many Asian and European benchmarks were up less than 1 percent, while oil regained some ground after a big tumble. The dollar strengthened against the yen and the euro.

Markets worldwide retreated after Goldman Sachs & Co. was charged with fraud for its dealings in subprime mortgage securities in the years before the global financial crisis.

Anxiety about the financial sector's prospects, however, was tempered somewhat after Citigroup Inc. reported a surprise first-quarter profit Tuesday. Goldman Sachs is set to report its quarterly results later in the day.

John Mar, head of sales trading at Daiwa Capital Markets in Hong Kong, said heavy selling in Asia after the Goldman news may have been overdone.

"What impact does it really have on this part of the world? I view it as an excuse to take profits," Mar said. "The outlook is still fairly positive — corporate earnings have been good, the economic news is still improving, with the worst behind us in the U.S."

Europe followed Asia, with benchmarks in Britain, Germany and France adding about 0.5 percent or less. U.S. futures pointed to mildly stronger open on Wall Street Tuesday. S&P futures were up 1.2 points, or 0.1 percent, at 1,196.80.

Hong Kong's Hang Seng index rose 1 percent to 21,623.38 and South Korea's Kospi was up 0.8 percent at 1,718.03.

Markets in India, Australia and Taiwan also gained. Thailand's key stock measure surged more than 3 percent — bouncing back from a sell-off triggered by deadly clashes between protesters and soldiers just over a week earlier.

Bucking the trend, Japan's Nikkei 225 stock average turned negative later in the session, shedding 0.1 percent to 10,900.68.

Chinese shares, down nearly 5 percent the day before after government took more action to restrain property prices, fell early in the session before stabilizing to close flat. The main Shanghai index finished virtually unchanged at 2,979.53.

Banking shares rose in Asia, with Japan's Sumitomo Mitsui Financial Group Inc. up 1.1 percent and National Australia Bank ahead by 2.8 percent.

Benchmark crude for May delivery was up $1.03 at $82.48. The contract fell $1.79 on Monday to settle at $81.45.

In currencies, the dollar rose to 92.82 from 92.47 yen late Monday. The euro fell to $1.3475 from $1.3488.

Monday in New York, the Dow rose 73.39, or 0.7 percent, to 11,092.05. The Standard & Poor's 500 index rose 5.39, or 0.5 percent, to 1,197.52, while the Nasdaq composite index slipped 1.15, or 0.1 percent, to 2,480.11.

 SINGAPORE: Oil prices rose above $82 a barrel Tuesday in Asia, clawing back a little ground after the fraud case against Goldman Sachs and flight disruptions in Europe from volcanic ash triggered a two-day plunge.

Benchmark crude for May delivery was up 69 cents to $82.14 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. Oil tumbled $1.79 to settle at $81.45 on Monday, after it fell $2.27 on Friday.

A rebound in stock markets helped boost crude prices. The Dow Jones industrial average rose 0.7 percent Monday as Citigroup Inc. reported better than expected earnings and revenue, and most Asian indexes gained Tuesday.

Stocks dropped Friday after the Securities and Exchange Commission said Goldman defrauded investors by failing to disclose key information about mortgage investments it sold as the housing market was collapsing in 2007.

Oil traders often look to equities as a barometer of overall investor sentiment.

"The stock market proved that lawsuits and courts are no match for profits," Cameron Hanover said in a report. "That took away one source of selling in oil."

Investors are also eyeing a huge cloud of ash from an Icelandic volcano that has shut down air traffic in most of Europe for five days. Some cities, such as Barcelona and Rome, were beginning to receive flights Tuesday, but most European airports remained shut.

In other Nymex trading in May contracts, heating oil rose 1.38 cents to $2.17 a gallon, and gasoline gained 0.74 cent to $2.26 a gallon. Natural gas jumped 1.7 cents to $3.96 per 1,000 cubic feet.

In London, Brent crude's June contract was up 56 cents at $84.79 on the ICE futures exchange.

TOKYO: Asian stock markets rose Tuesday after a mostly higher finish on Wall Street as concerns eased about the U.S. government's case against Goldman Sachs. The region's major benchmarks were up about 0.5 percent while oil regained some ground after a big tumble. The dollar fell against the yen and rose versus the euro. Japan's Nikkei 225 stock average added 0.4 percent to 10,955.01as a slightly weaker yen gave support to exporters. South Korea's Kospi was up 0.4 percent at 1,713.43, Hong Kong's Hang Seng advanced 0.6 percent to 21,530.09 and Australia's benchmark gained 0.3 percent. Stock markets in Taiwan and Singapore also rose, while shares in mainland China fell. In New York on Monday, the Dow Jones industrial average rose 0.7percent to 11,092.05 as investors set aside some of their concerns about the government's civil fraud charges against Goldman Sachs. The advance followed a drop of 126 points Friday when the Securities and Exchange Commission filed civil fraud charges against Goldman Sachs related to mortgage investments. Investor worries subsided after reports that the SEC's vote was split 3-2 along party lines to press its case against Goldman Sachs. Banking shares rose in Asia, with Japan's Sumitomo Mitsui Financial Group Inc. up 1.1 percent and National Australia Bank ahead by 2.5 percent. Benchmark crude for May delivery was up 63 cents at $82.08 in electronic trading on the New York Mercantile Exchange. The contract fell $1.79 on Monday to settle at $81.45. In currencies, the dollar rose to 92.57 from 92.47 yen late Monday. The euro fell to $1.3473 from $1.3488.

 KARACHI: Karachi Stock Exchange (KSE) witnessed a weak day as stock prices fluctuated throughout the session on Monday.

The benchmark KSE 100-share Index gained 11 points to finish the first trading day of the week at 10,669.

Today’s trade began with positive numbers and the major Index was, at one stage, seen floating at 10,691 points level. However, later profit taking in energy stocks took away the earlier gains, leaving the Index only with 11 points up.

The trade volume was recorded at 160 million shares with Lotte Pakistan topping the list of actives which an increase of paisas 30 to close at Rs12.40.

ISLAMABAD: Prime Minister Yousaf Raza Gilani's Finance Adviser Dr Hafeez Shaikh said if power tariff was not increased we would need to arrange more money to reduce deficit and satisfy World Bank and International Monetary Fund to get $ 900 million for curbing energy crisis.

He was addressing a seminar held at National University of Science and Technology.

He stressed the need to bridge the supply and demand gap of electricity. 'Six-point agenda has been chalked out to overcome energy crisis.'

International donors will not help until power theft is stopped, the advisor said.

LONDON: The aviation industry sharply criticized European governments on Monday for their handling of airport closures, saying there was ``no coordination and no leadership'' in the volcanic ash crisis that shut down European airports for a fifth straight day.

The International Air Transport Association says the airport lockdowns are costing the aviation industry at least $200 million a day and affecting millions of travelers since the volcano in Iceland begun erupting Wednesday.

Some smaller airports reopened, and European officials had hoped that flights could return to about 50 percent of normal on Monday ifthe skies were clearing.

But authorities in Britain, France, Germany, and the Netherlands home to three of Europe's largest airports said their air space was still closed. Britain said it was keeping flight restrictions on through until at least early Tuesday, while Italy briefly lifted restrictions in the north then quickly closed again Monday after conditions worsened.

 KARACHI: Pakistan's current account deficit in the first nine months of the 2009/10 fiscal year was a provisional $2.702 billion, the central bank said on Monday.

That compared with a deficit of $8.379 billion in the same period last year, the State Bank of Pakistan said.

"Higher export receipts were the key reason behind the narrowing of the current account deficit," said Asif Qureshi, director at Invisor Securities Ltd.

The trade deficit for the July to March period of the 2009/10 fiscal year was $10.92 billion compared with $12.74 billion in the same period last year.

Pakistan recorded a provisional current account deficit of $40 million in March compared with a provisional $50 million in February.

In a quarterly report on the economy released last month, the central bank lowered its forecast for the 2009/10 current account deficit to 3.2-3.8 percent of gross domestic product, from previous estimates of 3.7-4.7 percent.

Analysts, however, said there could be some widening in the current account deficit.

"The current trend may not be sustained for long if oil prices continue to hold above $80, so we may see some deficit widening in coming months," said Qureshi.

An International Monetary Fund (IMF) emergency loan package of $7.6 billion agreed in November 2008 helped avert a balance of payments crisis and shore up reserves.

The IMF increased the loan to $11.3 billion in July and the central bank received a fourth tranche of $1.2 billion on Dec. 28.

The IMF has assured Pakistan it will approve the release of the next tranche at a board meeting on May 3, the country's prime minister's office said last week. The next tranche is of $1.2 billion.

ISLAMABAD: Government of Pakistan is all set to enforce the Value-added Tax (VAT) regime from July 1 across the country amid widespread concerns among economists and traders.

The traders said the Tax would directly hit the common man.

The FBR is planning to enforce the GST Amended bill as a part of Plan-B under which the existing tax exemptions will be waived off as it seems reluctant to enforce VAT, because its staff is not so far given training on VAT and retailers are also not in a mood to pay VAT, as they have not been educated by the FBR on how to maintain their documents after the VAT is enforced.

The VAT would be received in proportion to the value hike in the products and services; thus, the Tax would be included in the price of a product from its production phase to the phase of supply to the consumers.

Only the consumer would be bound to pay the price of it all.

If 15 percent VAT is enforced, it would entail Rs125 billion in additional revenues in the first year of its promulgation; the Tax would not be applicable to the business that sells less than Rs7.5 million.

Federal Board of Revenue (FBR) said the VAT would not push up the prices of edibles, as General Sales Tax (GST) is already imposed on them and some essential commodities i.e. daal and atta would be exempted from it.

The economic analysts said VAT is also an indirect tax which would affect common man; contrarily, the government should impose tax on the direct income to receive the revenues.

Besides, burden of price hike should be shifted from the poor to tax-evaders by widening the tax net, they urged.

SINGAPORE: Oil tumbled below 82 dollars in Asian trade Monday, extending last week's losses as financial markets reeled from the impact of fraud charges against Wall Street icon Goldman Sachs, analysts said.

New York's main contract, light sweet crude for delivery in May, was down 1.49 dollars at 81.75 dollars a barrel. Brent North Sea crude for June tumbled 1.11 dollars to 84.88 dollars.

 MULTAN: Foreign Minister Makhdoom Shah Mehmood Qureshi said that a national criminal investigation would be the next step to move forward after the announcement of UN Commission’s report on assassination of Mohtarma Benazir Bhutto.

Addressing a press conference at the local airport, he said that the UN report was being examined by legal experts and added that government was moving forward in accordance with the procedure and would not take any decision in haste.

He said that President Asif Ali Zardari would announce the next strategy after a thorough process of consultation and after taking the party and its CEC into confidence.

He said that government had opted for the inquiry by the UN to ensure impartiality and added that the criminal investigations thus conducted would have more weight. It would be more credible at national and international levels, he added.

The FM said that the martyrdom of Mohtarma Benazir Bhutto was not merely a loss for the party but for Pakistan, the region and the whole world because she was a leader of international stature.

Makhdoom Shah Mehmood Qureshi said that President Asif Ali Zardari and the Bhutto family waited patiently because they wanted to have truth behind the tragedy unveiled.

To a question, he said that he does not want to repeat the excerpts from the UN Commission’s Report which indicate poor security arrangements made by the then government and that the process of investigation was impeded.

The Foreign Minister said that the whole world has expressed confidence on Pakistan’s nuclear programme at the Nuclear Safety Summit in Washington and doubts which used to be expressed by some elements have died their own death. It shows that all doubts and stories were meaningless, he added.

He said that US President Barack Obama himself expressed confidence over Pakistan nuclear programme stating that its security measures were second to none.

The FM said that he himself accompanied Prime Minister Syed Yusuf Raza Gilani to Washington to attend the nuclear safety summit and our experts’ team headed by Pakistan’s Ambassador to China Masud Khan presented Pakistan’s case effectively.

He said that Pakistan informed the summit that was attended by heads of 45 countries that our three-layered security system meets international standards and was foolproof. The FM added that Pakistan also made it clear that its export control regime and regulatory framework were also in accordance with the international standards and no one raised objection on it during the summit.

Makhdoom Shah Mehmood Qureshi said that the most important was the statement of US President at the summit in which he stated in his concluding remarks: “We recognize the right of the developing countries to civil nuclear technology.”

To a question, the FM said that this government raised the issue of civil nuclear technology with the US. He, however, added that India did not secure the civil nuclear technology agreement with the US overnight.

He said that the PM also met with the US President, secretary of state Hillary Clinton, Senator John Kerry and the IMF officials.

During the meeting with the IMF officials, the PM said that Pakistan was battling power crisis and it was not possible for the government to raise power tariff further in such circumstances. He added that PM told the IMF officials that the burden would be beyond the capacity of the people of Pakistan.

We felt a sense of understanding during the talks and Pakistan government hopes that the next IMF tranche would be released after the IMF board meeting to be held on May 3-4, the foreign minister added.

Shah Mehmood Qureshi disclosed that Prime Minister Syed Yusuf Raza Gilani would take up the case of Pakistan’s inclusion in the list of GSP Plus (Generalized System of Preferences) countries when he meets the EU leaders at the second Pak-EU summit on April 21 in Brussels.

The 27-member EU is the largest trade partner of Pakistan and GSP Plus status would not only enhance Pakistan’s exports to EU up to $US 6 billion but will also create one million jobs for the unemployed youth, he added.

The FM said that Pakistan’s preferences to combat the economic challenges included steps to overcome energy crisis and seek enhanced access of Pakistani products to lucrative foreign markets including US and EU.

We have advocated for trade instead of aid during talks with the US and EU leaders and US President Barack Obama has reiterated his commitment to expedite the Reconstruction Opportunity Zones (RoZs) legislation in the US Senate, he said.

The FM expressed deep sense of grief over the deaths of the people in Abbottabad, Hazara division, and prayed that may Almighty rest the departed souls in eternal peace and give courage to the bereaved families to bear this loss.

To a question, he said, it is time to pacify the situation instead of igniting emotions and all the political parties have to play a responsible role in this connection.

He said that PML-Q has taken the matter enthusiastically despite the fact that nine of its 21 senators had agreed on approval of the 18th amendment bill. PML-Q should have first developed consensus within party on the issue, he added.

The FM said that Pakistan raised the water issue with the US in the strategic dialogue and handed over a dossier to the US officials. While the statements did appear on the issue time and again in past but it was for the first time that the issue was raised in documented form, FM said and added that water was vital for country’s agriculture, livestock and it was linked to inter-provincial harmony.

To another question regarding Dr. Aafia Siddiqui, he said that he raised the issue at the highest forum during bilateral talks with the US. I did it while taking it as my responsibility and not for any feather in my cap, he added.

 KARACHI: The benchmark KSE 100-share Index for the first time after August 2008 surged above 10,600 level and managed to sustain it this week with a gain of 72 points.

The share market began the week with positive numbers, as local and foreign investors took interest in buying stocks in energy sector and other shares available at dips.

The index closed this week with an increase of 72 points at 10,659, highest level since August 2008.

TRG Pakistan and WorldCall topped the list of front runners.

On the other hand KSE-30 Index closed 22 points up at 10,877.

 LAHORE: General Manager Railways Ashfaq Khattak has said that 120 trains out of 220 are operating in deficit.

Pakistan Railways had to suffer a loss of Rs17.5 billion in a period of eight months.

Talking exclusively to Geo News, the GM Railways called upon the government to plug the deficit for trains running in loss or stop their operation.

 KARACHI: Chairman of National Database and Registration Authority (NADRA) Ali Arshad Hakeem said the Authority would issue Smart Card, which would use the Computerized National Identity Card as ATM and Debit cards, Geo News reported Saturday.

Addressing the inaugural session of the Pakistan Branchless Banking Conference at SBP Learning Resource Centre, Hakeem said the Authority is working on using CNIC as ATM and debit card.

He said the idea of smart card has been derived from giving the financial assistance to terror-hit affectees of Malakand.

Ali Arshad Hakeem said a special chip would be added to the CNIC which would make it usable as cash card.

 KARACHI: Syed Salim Raza, Governor, State Bank of Pakistan Saturday said the mobile banking or using third-party sources take the banking costs down 30 percent at international level; while, these expenses are reduced 60 percent in Pakistan.

Addressing at the inaugural session of the Pakistan Branchless Banking Conference at SBP Learning Resource Centre, here, he said at least four billion people are not using the banking system in the world and a meager 12 percent people use banking sources in Pakistan.

The SBP governor said the branchless banking is hugely vital for the banking industry in Pakistan and the research has proved that mobile banking or using third-party sources slash the banking costs by 30 percent, adding in Pakistan these expenses would go down by 60 percent.

Three-tier banking is being operated in Pakistan, i.e. mobile phone operators, large banks and retail micro-finance, he informed

The one-day conference, which is being organized by the State Bank in collaboration with UK Aid, in an attempt to highlight the existing branchless banking developments in Pakistan, showcase the state of industry preparedness and catalyze the investments and product innovation.

Salim Raza said in his keynote address at the conference on the ‘Need for Alternative Delivery Channels in Improving Access to Finance’ that Pakistan is the only country in South Asia to have issued guidelines for branchless banking.

Leading international and local experts and practitioners on Branchless Banking including technology experts from the World Bank’s Consultative Group to Assist the Poor (CGAP) are at the conference as speakers and panelists.

At least 250 participants primarily from the banking sector, mobile operators, technology companies, agent networks, regulators, government and donors, are attending the Conference.

ISLAMABAD: Seventy-six Pakistani companies will attend Chinese trade fair, the head of Export Promotion Bureau Syed Mohibullah Shah said.

Talking to a four-member Chinese delegation, Syed Mohibullah said that 76 Pakistani companies will participated in South Asian commodity fair which will begin from June 6 in China.

Chinese delegation at this occasion said that the fair will provide an opportunity to traders to introduce their products on international level.

SINGAPORE: Oil prices fell towards $85 a barrel on Friday as doubts over US crude demand re-emerged and the dollar strengthened, making imports more expensive for emerging economies where consumption is surging.

U.S. crude for May delivery fell 49 cents to $85.02 a barrel by 0900 GMT, more than $2 lower than an 18-month high above $87 reached last week. The dollar gained almost 0.1 percent against a basket of currencies.

The May London Brent crude oil contract reached 18-month highs just before it expired on Thursday, jumping to a premium over the front-month US crude contract of over $1.60. The June contract, now the front-month contract, was trading about $1 higher than the equivalent contract for US crude on Friday, shedding 35 cents to $87.24.

RAWALPINDI: Water and Power Minister Raja Parvez Ashraf claimed that 1000MW of electricity would add to the system this month while 2700MW more electricity would be included in the system during this year.

Speaking at the Rawalpindi Chamber of Commerce and Industry (RCCI) here on Friday, he said the situation would not have become so alarming if the 1994 policy of power generation had been carried on.

“We are working on a project to provide 30 million free energy savers to consumers in collaboration with the Asian Development Bank (ADB),” he said.

He said that non-supply of gas was affecting the thermal power generation while water level was also low in the dams.

Ashraf said the government has undertaken the feasibility study to lay down 450km long gas pipeline to bring 1000 MW of electricity from Iran.

 ISLAMABAD: The Chief Executive Officer of Alternative Energy Development Board (AEDB) Arif Alauddin said with the assistance of World Bank, 100,000 agriculture tube wells would be operated through solar energy within coming five years.

Talking to Geo News, Alauddin said there are 1100,000 tube wells across the country among which 250,000 tube wells are taking 3,000 MW electricity from PEPCO system. He said World Bank has approved the pilot project under which initially 25 tube wells will be run through solar energy panels. World Bank will provide $ 300 million for the project, he added.

KARACHI: Investors displayed confidence on Pakistani bonds in world markets, as the insurance premium rate on five-year bonds edged down 26 percent to 6.5 percent, Geo News reported Thursday.

According to Credit Market Analysis (CMA), which organises and structures CDS (credit default swaps), bond quotes and valuation data, if the government of Pakistan sells five-year Euro bond on world level, it would have 6.5 percent insurance risk premium.

The insurance risk premium rate on Pakistani bonds was 8.9 percent on February 2, 2010, which perched on 6.5 percent on April 14, 2010.

According to experts, the balance of payments improved as the trade deficit shrank and foreign exchange reserves bulge; this has led to reduction in insurance risk premium on five-year bonds.

According the experts, the insurance risk premium can jump up in view of foreign investment, delay in expected aid and political instability.

BEIJING: China's economy grew a blistering 11.9 percent in the first quarter, the government said Thursday, increasing pressure on Beijing to raise interest rates and loosen controls on its currency.

Gross domestic product in the world's third-largest economy maintained double-digit growth for the second straight quarter after expanding 10.7 percent in the last three months of 2009.

"We have got off to a good start this year," Li Xiaochao, spokesman for the National Bureau of Statistics, told reporters.

"The momentum of national economic recovery has further expanded, which has laid a good foundation for reaching the targets set for the whole year."

The number was boosted by a low base effect last year when the economy grew 6.2 percent, the slowest pace in more than a decade.

Growth in the March quarter was the fastest since the onset of the global slump and well above Beijing's target of eight percent for this year, which is seen as crucial in creating enough jobs to stave off social unrest.

The nation's closely watched consumer price index, the main gauge of inflation, rose 2.2 percent in the first quarter compared with the same period a year earlier, the statistics bureau said.

The increase was slower than in February when consumer prices rose 2.7 percent and below the government's inflation target of three percent for the year. Retail sales jumped 17.9 percent in the January-March period.

China's fixed asset investments, a measure of government spending on infrastructure and a key driver of the economy, jumped 25.6 percent year on year.

Industrial output from the country's millions of factories and workshops rose 19.6 percent.

ISLAMABAD: The government of Pakistan assured the International Monetary Fund (IMF) of issuing sukuk bonds worth Rs100 billion to take down the circular debts of various government departments, Geo News reported Thursday.

President Asif Ali Zardari also assured to play a role for Value-added Tax (VAT) in Sindh.

The IMF loan was increased to $11.3 billion in July last year and the central bank received a fourth tranche of $1.2 billion on Dec. 28.

The sources privy to Finance Ministry told Geo News that the government’s negotiations with the IMF for fifth tranche of $1.2 billion proved fruitful. Also, the working paper of the tranche would be presented to Pakistan in meeting of IMF’s Board of Directors on May 4 in Washington.

Two high officials from Federal Finance Ministry are expected to attend the meeting.

The sources further said Pakistan assured the IMF of bringing under control the fiscal deficit on receiving the Support Fund.

TOKYO: The dollar rose in Asian trade Thursday on the back of robust economic data from the United States, while China's surging economy in the first quarter raised expectations of yuan revaluation.

The dollar firmed to 93.40 yen in Tokyo morning trade from 93.24 in New York late Wednesday. The euro dipped to 1.3649 dollars from 1.3656 but edged up to 127.48 yen from 127.33.

Stronger-than-expected US March retail sales data released overnight lifted the dollar, supporting views that consumer spending will boost growth in the first quarter of the year, Credit Agricole CIB analysts said in a client note.

March retail sales rose for the third straight month, by a greater-than-anticipated 1.6 percent.

The greenback will be supported by a positive tone in markets with the release of March factory data later Thursday, expected to show a 0.6 percent gain and strengthen the outlook for a sustainable recovery in the US economy.

China said Wednesday that first-quarter growth expanded 11.9 percent year-on-year, the fastest pace since the global financial crisis. Its consumer price index jumped 2.4 percent in March, in line with market expectations.

Dealers said the data underlined evidence of an overheating economy and highlighted the need for fast action to curb inflation threats.

The data fuelled "greater expectations of an imminent yuan revaluation as well as monetary tightening" in order to take the froth out of the economy, Credit Agricole CIB analysts said.

Asian currencies are likely to bounce from a yuan revaluation as well as from anticipation that other Asian central banks are moving to tighten their monetary policies, unlike their counterparts in advanced economies.

Singapore on Wednesday revalued its currency—the city-state's principal monetary tool—prompting speculation that China and South Korea may be next in line.

"Given this expectation, firm risk appetite, and more follow-through from Singapore foreign exchange move, the outlook for other Asian currencies remains bullish," Credit Agricole analysts said.

Australia, Malaysia, India, and Vietnam all hiked interest rates in recent months.

 KARACHI: Pakistan's foreign exchange reserves rose to $15.05 billion in the week ending on April 10 from $14.96 billion the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) rose to $11.16 billion from $11.06 billion a week earlier, while those held by commercial banks eased to $3.89 billion from $3.90 billion, said the SBP's chief spokesman, Syed Wasimuddin.

"There was a bilateral inflow of about $40 million to $45 million," said Wasimuddin.

KARACHI: Investors displayed confidence on Pakistani bonds in world markets, as the insurance premium rate on five-year bonds edged down 26 percent to 6.5 percent, Geo News reported Thursday.

According to Credit Market Analysis (CMA), which organises and structures CDS (credit default swaps), bond quotes and valuation data, if the government of Pakistan sells five-year Euro bond on world level, it would have 6.5 percent insurance risk premium.

The insurance risk premium rate on Pakistani bonds was 8.9 percent on February 2, 2010, which perched on 6.5 percent on April 14, 2010.

According to experts, the balance of payments improved as the trade deficit shrank and foreign exchange reserves bulge; this has led to reduction in insurance risk premium on five-year bonds.

According the experts, the insurance risk premium can jump up in view of foreign investment, delay in expected aid and political instability.

   BEIJING: China's economy grew a blistering 11.9 percent in the first quarter, the government said Thursday, increasing pressure on Beijing to raise interest rates and loosen controls on its currency.

Gross domestic product in the world's third-largest economy maintained double-digit growth for the second straight quarter after expanding 10.7 percent in the last three months of 2009.

"We have got off to a good start this year," Li Xiaochao, spokesman for the National Bureau of Statistics, told reporters.

"The momentum of national economic recovery has further expanded, which has laid a good foundation for reaching the targets set for the whole year."

The number was boosted by a low base effect last year when the economy grew 6.2 percent, the slowest pace in more than a decade.

Growth in the March quarter was the fastest since the onset of the global slump and well above Beijing's target of eight percent for this year, which is seen as crucial in creating enough jobs to stave off social unrest.

The nation's closely watched consumer price index, the main gauge of inflation, rose 2.2 percent in the first quarter compared with the same period a year earlier, the statistics bureau said.

The increase was slower than in February when consumer prices rose 2.7 percent and below the government's inflation target of three percent for the year. Retail sales jumped 17.9 percent in the January-March period.

China's fixed asset investments, a measure of government spending on infrastructure and a key driver of the economy, jumped 25.6 percent year on year.

Industrial output from the country's millions of factories and workshops rose 19.6 percent.

 ISLAMABAD: The government of Pakistan assured the International Monetary Fund (IMF) of issuing sukuk bonds worth Rs100 billion to take down the circular debts of various government departments, Geo News reported Thursday.

President Asif Ali Zardari also assured to play a role for Value-added Tax (VAT) in Sindh.

The IMF loan was increased to $11.3 billion in July last year and the central bank received a fourth tranche of $1.2 billion on Dec. 28.

The sources privy to Finance Ministry told Geo News that the government’s negotiations with the IMF for fifth tranche of $1.2 billion proved fruitful. Also, the working paper of the tranche would be presented to Pakistan in meeting of IMF’s Board of Directors on May 4 in Washington.

Two high officials from Federal Finance Ministry are expected to attend the meeting.

The sources further said Pakistan assured the IMF of bringing under control the fiscal deficit on receiving the Support Fund.

TOKYO: The dollar rose in Asian trade Thursday on the back of robust economic data from the United States, while China's surging economy in the first quarter raised expectations of yuan revaluation.

The dollar firmed to 93.40 yen in Tokyo morning trade from 93.24 in New York late Wednesday. The euro dipped to 1.3649 dollars from 1.3656 but edged up to 127.48 yen from 127.33.

Stronger-than-expected US March retail sales data released overnight lifted the dollar, supporting views that consumer spending will boost growth in the first quarter of the year, Credit Agricole CIB analysts said in a client note.

March retail sales rose for the third straight month, by a greater-than-anticipated 1.6 percent.

The greenback will be supported by a positive tone in markets with the release of March factory data later Thursday, expected to show a 0.6 percent gain and strengthen the outlook for a sustainable recovery in the US economy.

China said Wednesday that first-quarter growth expanded 11.9 percent year-on-year, the fastest pace since the global financial crisis. Its consumer price index jumped 2.4 percent in March, in line with market expectations.

Dealers said the data underlined evidence of an overheating economy and highlighted the need for fast action to curb inflation threats.

The data fuelled "greater expectations of an imminent yuan revaluation as well as monetary tightening" in order to take the froth out of the economy, Credit Agricole CIB analysts said.

Asian currencies are likely to bounce from a yuan revaluation as well as from anticipation that other Asian central banks are moving to tighten their monetary policies, unlike their counterparts in advanced economies.

Singapore on Wednesday revalued its currency—the city-state's principal monetary tool—prompting speculation that China and South Korea may be next in line.

"Given this expectation, firm risk appetite, and more follow-through from Singapore foreign exchange move, the outlook for other Asian currencies remains bullish," Credit Agricole analysts said.

Australia, Malaysia, India, and Vietnam all hiked interest rates in recent months.

HONG KONG: Better-than-expected US consumer spending data and strong corporate results boosted Asian stocks Thursday as blistering Chinese growth figures increased pressure on Beijing to raise interest rates.

Comments by US Federal Reserve chief Ben Bernanke that the US would likely see a "moderate economic recovery" also helped the dollar as dealers grew more optimistic over the global recovery.

Shanghai rose 0.45 percent in early trade following the release of data showing China's economy grew 11.9 percent in the first three months of 2010, the second straight months of double-digit growth.

The government also revealed that the consumer price index, the main gauge of inflation, rose 2.2 percent in the same period, while retail sales jumped 17.9 percent in the January-March period.

The figures will stoke speculation that Beijing will increase interest rates to keep a lid on inflation and also loosen controls on its currency, which critics say is being kept artificially weak to boost exports.

Meanwhile Tokyo was 0.70 percent higher and Hong Kong was up 0.43 percent, while Sydney added 0.19 percent as investors welcomed US figures showing retail sales rose 1.6 percent in March, reflecting growing strength of consumer spending.

A separate report revealed consumer prices rose just 0.1 percent in the same month. US consumer spending is keenly watched as it is traditionally a key driver of the world's biggest economy.

The news came as Bernanke told Congress that economic demand would be enough to "promote a moderate economic recovery in coming quarters", adding that interest rates would be kept at super low levels for an "extended period".

Wall Street cheered the news and was also given a lift by JPMorgan Chase reporting a 55 percent jump in earnings as the banking giant appeared to continue its journey back to health after the financial crisis.

Comments from its chief executive Jamie Dimon further helped sentiment.

"While the economy still faces challenges, there have been clear and broad-based improvements in underlying trends," he said. "We believe these improvements will continue and are hopeful they will gather momentum, resulting in a strong recovery."

The Wall Street rise gave a cue to Asian markets, with Singapore up 0.21 percent and Taipei 0.48 percent higher.

The dollar firmed to 93.40 yen in Tokyo morning trade from 93.24 in New York late Wednesday. The euro dipped to 1.3649 dollars from 1.3656 but edged up to 127.48 yen from 127.33.

Oil was higher, with New York's main contract, light sweet crude for delivery in May, up 25 cents to 86.09 dollars a barrel.

Brent North Sea crude for May was 30 cents higher at 86.45 dollars.

Gold opened at 1,157.50-1,158.50 US dollars an ounce, up from Wednesday's close of 1,155.00-1,156.00 dollars.

FAISALABAD: The power supply to the industries and factories situated in Faisalabad will remain closed for 24 hours today under gas management schedule, Geo News reported Wednesday.

Gas closure has forced the factories to cease working and rendered thousands of daily wages workers jobless.

Sui Northern Gas issued a schedule of gas management, under which gas supply to industries across Punjab will remain closed for one day to meet the gas shortage.

Faisalabad region factories will not receive gas today, causing troubles for the hundreds of factories and laborers.

SINGAPORE: Oil prices rebounded in Asian trade Wednesday as the market reacted to forecasts of stronger energy demand by the International Energy Agency (IEA).

New York's main contract, light sweet crude for delivery in May, climbed 23 cents to 84.28 dollars a barrel.

Brent North Sea crude for May also was up 12 cents to 84.84 dollars.

"There's no doubt that the market is reacting to the IEA numbers especially in the OECD countries where demand growth has been weaker," said Ben Westmore, a minerals and energy economist with the National Australia Bank in Melbourne.

But the gains could be capped by the US Department of Energy's weekly energy reserves report, a closely watched indicator of demand in the world's biggest economy, due late Wednesday, Westmore said.

"It looks like most analysts are expecting another build in US crude stocks and it does seem like demand has not really rebounded to the extent that supply has and that's going to weigh on prices at this level," he said by telephone.

The IEA, which offers advice on energy policy to the Organisation for Economic Cooperation and Development (OECD), on Tuesday upgraded its forecast for global energy demand in 2010 by 30,000 barrels per day.

It cited strong economic activity in the United States, Asia and the Middle East for its new projections.

However, the IEA also warned that oil prices above 80 dollars a barrel could hamper recovery from the latest global economic downturn.

"While ongoing price subsidies may shield non-OECD consumers from the reality of any potential renewed surge in prices, this, plus tighter credit than two years ago, could stall OECD economic recovery or render it more 'oil-less' than we currently envisage," the IEA said.

KARACHI: The Food department of Sindh has purchased 600,000 tonnes of wheat from farmers. The set target of wheat purchase is 1500.000 tonnes. Secretary Food Sindh, Naveed Kamran Baloch told Geo News that the target of wheat purchase for the current area would be achieved before the deadline.

ISLAMABAD: Jamshoro Joint Ventures Limited reduced the price of Liquefied Petroleum Gas by Rs12000 per tonne, Geo News reported Wednesday.

Talking to Geo News, President LPG Distributors Association Irfan Khokar said the JJVL brought down the LPG prices from Rs65,864 to Rs53,536 per tonnes, adding this price cut will take the domestic cylinder price down by Rs143 and industrial cylinder by Rs550 in next two days.

Khokar said the LPG will come down by Rs12 per kilogram across the country.

The sources privy to Oil and Gas Ministry said the OGDCL will invite bids regarding the supply of 500 million tonnes of the LPG from Kunar and Bobby field in upcoming two to three days.

 KARACHI: Central Bank has set the limit of long term export loans, which are granted on easy terms by one billion rupees, Geo news reported.

According to statement issued from SBP on Tuesday, the loans sought for the purchase of machinery used in export industry for long-term schemes will now be limited by Rs.1 billion.

This decision will minimize banking risks besides increasing number of loan seekers, it said.

 ISLAMABAD: The Asian Development Outlook 2010 (ADO 2010), released on Tuesday, forecasts Pakistan’s GDP growth in 2010 to modestly improve to 3.0 percent backed by a recovery in the manufacturing sector.

ADO, the Asian Development Bank’s flagship annual economic publication said that inflation in FY 2010 projected to fall to 12 percent from its peak of the previous fiscal year is still high.

On the external side, the ADO added, current account deficit backed by the still robust remittances is also projected to fall to 3.6 percent of GDP from 5.6 of GDP a year earlier.

While macroeconomic imbalances have narrowed and economic fundamentals have improved, the ADO 2010 notes that the security environment and an ongoing power crisis are both burdening the fiscal situation and obstructing a growth revival.

That revival, according to the ADO, will depend on multiple factors and stresses a faster implementation of ongoing measures in taxation and energy sector which are critical to generate required fiscal space.

A key issue is the financing of the fiscal deficit, it said adding that rapid fiscal improvements were needed to underpin recovery, sustain the public sector development programme, and prevent crowding out of the private sector.

The ADO also emphasizes the need to generate a diversified, vibrant and higher value added export base to contain the current account deficit and improve debt profile of the country, as well as ensure faster growth and employment creation.

ADO said that Pakistan’s economic prospects are predicated on a successful completion of the current IMF programme by end-2010; a gradual improvement in the security situation; a phased reduction in electricity shortages as tariffs meet cost of supply and new power plants are commissioned; sustained implementation of fiscal reforms, particularly for tax and administration; a gradual economic recovery in the main trading partners; and political stability.

The ADO highlighted three interconnected development challenges facing Pakistan. The first is fiscal situation, second low growth and the challenge to revive it so as to create jobs and reduce poverty while the third is to improve the competitiveness of the economy so as to expand exports, sustain growth, and avoid balance-of-payments problems in the future.

Asian Development Outlook, is ADB’s annual flagship economic report analyzing the economic conditions and prospects in Asia and the Pacific, and is issued in April.

SINGAPORE: Oil prices fell for a fifth day to near $84 a barrel Tuesday in Asia as traders mulled whether a slowly recovering U.S. economy justified the recent two-month, 25 percent crude rally.

Benchmark crude for May delivery was down 24 cents to $84.10 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 58 cents to settle at $84.34 on Monday.

Crude jumped to above $87 a barrel last week from $69 in early February on investor expectations tepid U.S. crude demand will eventually catch up with a recovering economy. U.S. crude inventories have remained high, but some analysts were cheered by signs global economic growth is strengthening.

“Recent economic news has been reassuring, reinforcing the notion of a broadening recovery which we expect will continue to support energy and industrial metals prices going forward,'' Goldman Sachs said in a report.

Goldman said it expects crude to rise to $94.50 a barrel in three months and $99 in 12 months.

In other Nymex trading in May contracts, heating oil was steady at $2.218 a gallon, and gasoline held at $2.295 a gallon. Naturalgas fell 1.4 cents to $3.994 per 1,000 cubic feet.

In London, Brent crude was up 3 cents at $84.80 on the ICE futures exchange.

ISLAMABAD: The Asian Development Outlook 2010 (ADO 2010), released on Tuesday, forecasts Pakistan’s GDP growth in 2010 to modestly improve to 3.0 percent backed by a recovery in the manufacturing sector.

ADO, the Asian Development Bank’s flagship annual economic publication said that inflation in FY 2010 projected to fall to 12 percent from its peak of the previous fiscal year is still high.

On the external side, the ADO added, current account deficit backed by the still robust remittances is also projected to fall to 3.6 percent of GDP from 5.6 of GDP a year earlier.

While macroeconomic imbalances have narrowed and economic fundamentals have improved, the ADO 2010 notes that the security environment and an ongoing power crisis are both burdening the fiscal situation and obstructing a growth revival.

That revival, according to the ADO, will depend on multiple factors and stresses a faster implementation of ongoing measures in taxation and energy sector which are critical to generate required fiscal space.

A key issue is the financing of the fiscal deficit, it said adding that rapid fiscal improvements were needed to underpin recovery, sustain the public sector development programme, and prevent crowding out of the private sector.

The ADO also emphasizes the need to generate a diversified, vibrant and higher value added export base to contain the current account deficit and improve debt profile of the country, as well as ensure faster growth and employment creation.

ADO said that Pakistan’s economic prospects are predicated on a successful completion of the current IMF programme by end-2010; a gradual improvement in the security situation; a phased reduction in electricity shortages as tariffs meet cost of supply and new power plants are commissioned; sustained implementation of fiscal reforms, particularly for tax and administration; a gradual economic recovery in the main trading partners; and political stability.

The ADO highlighted three interconnected development challenges facing Pakistan. The first is fiscal situation, second low growth and the challenge to revive it so as to create jobs and reduce poverty while the third is to improve the competitiveness of the economy so as to expand exports, sustain growth, and avoid balance-of-payments problems in the future.

Asian Development Outlook, is ADB’s annual flagship economic report analyzing the economic conditions and prospects in Asia and the Pacific, and is issued in April.