Economic and Business Updates From July 05 to 11, 2010

• The International Monetary Fund projects that Pakistan’s economy will grow by four per cent during the current fiscal year, which will expand to six per cent within the next five years. 

• The World Bank forecasts further rise in power tariff to bridge the gap between the cost of production and the billing amount collected from consumers. 

• The consumer price index rises by 12.6 per cent year-onyear in June, a slower rise than May, due to cut in domestic fuel prices 

• The fiscal deficit for the financial year 2009-10 has provisionally been estimated at more than 5.8 per cent mainly because of substantial revenue shortfall, non-realisation of targeted foreign inflows and negative provincial budgets. 

• The Federal Board of Revenue establishes two regional tax offices in Karachi which will start operation from August 1. 

• The Mari Gas Company Limited makes a significant discovery of gas/condensate with its tested maximum flow rate of 11.5MMSCFD in the Sujawal X-1 in the Sujawal Exploration Block in Sindh. 

• Pakistan and China reaffirm at the highest level to strengthen strategic relationship between the two countries, increase the level of economic cooperation by an order of magnitude, and take concrete measures to bring their peoples closer. 

• Pakistan rejects an Afghan proposal to allow transit facility for transportation of Indian goods to Afghanistan through Wahgah border under the proposed Afghanistan-Pakistan Transit Trade Agreement. 

• The government decides to revise the PC-1 of the multi-billion dollar DiamerBhasha Dam to extend additional financial benefits to the affected people. 

• Pakistan's rice exports register a growth of 57 per cent during the fiscal year 2009-10, but the value declines by 30 per cent on nonbasmati, and 30 per cent on basmati rice.

• The State Bank again gives three to six months extension to the 12 banks for meeting the minimum capital requirement which they failed to achieve for the second time. 

• The German Technical cooperation offers financial and technical assistance to the Federal Board of Revenue in the key areas of tax administration reforms including value added tax /reformed general sales tax.

International 

• The Monetary Fund observes that the value added tax or an improved tax on sales and consumption is an integral part of the IMF programme. 

• Banks/DFIs suffer a loss of Rs2.278 billion on account of loan written off since March 2008, according to federal ministry for finance. 

• The national grid will have another 1,200MW of electricity by the end of this year, says Water and Power Minister Raja Pervez Ashraf.