Economic and Business Updates From February 8 to 14, 2010

• THE government will achieve the Rs1,380 billion revenue collection target for the current financial year, though the rate of inflation is gradually increasing since 2004, says the state minister for finance.

• AN assessment team of the US Federal Trade Commission is due here next month to explore possibility of providing technical assistance to the Competition Commission of Pakistan.

• PAKISTAN suffers losses of at least $100 million owing to de facto ban by the European Union on import of seafood products from the country on quality grounds since 2007.

• THE trade deficit shrinks by 22 per cent from $10.825 billion to $8.444 billion due to negative growth in imports and slight increase in exports during the first seven months of the current fiscal year ((July- January).

• THE cabinet approves medium-term budgetary framework to introduce 3-year budgetary system to be presented in the parliament in May 2010.

• THE Pakistan Machine Tool Factory, the Heavy Electrical Complex and the State Engineering Corporation ask the government for Rs3.89 billion support to make these enterprises viable.

• PAKISTAN may lose its huge market of tractors in Japan due to failure of a local manufacturer to provide the vehicle to the country according to its commitment.

• THE State Bank of Pakistan imposes Rs20.2 million penalties on 296 branches of 33 commercial banks for violating its instruction regarding distribution of fresh currency notes to general public and functioning of Automated Tellers Machines.

• THE National Investment Trust announces to launch its new product “NIT Income Fund” from today.

• THE Directorate of National Savings generates Rs3.6 billion till January 26, 2010 through subscription of newly launched National Savings Bonds to be traded at all the three stock exchanges.

• THE National Assembly passes the Banking Companies (Amendment) Bill 2009 enabling the State Bank to change managements in banks, impose losses on shareholders by writing down their capital, intervene and take control of banks, appoint administrators to manage and restructure them when symptoms of crises are determined.

• THAILAND officials reject proposal to supply sugar to Pakistan on government-togovernment basis and ask to approach private firms.

• THE government proposes15 per cent value-added tax on import and local supply of aircraft, ships with gross tonnage exceeding 15 LDTS and poultry/cattle feeds with all ingredients under the Federal VAT Act 2010, say well informed sources.

• THE government increases the current expenditure by Rs299 billion which has reduced development spending by Rs253 billion for the on-going fiscal year.