Economy on way to revival: Ishrat: The News

KARACHI: Former Governor State Bank of Pakistan and Dean and Director Institute of Business Administration, Dr Ishrat Hussain has said that Pakistan is now on moving towards economic revival as recent indicators have shown easing of the crisis that the country was facing.

Pakistan France Business Alliance, the representative forum of Pakistani and French companies, organised the 5th Pakistan-France Trade Performance Awards 2006-07 to recognise and honour leading Pakistani manufacturers and exporters and importers from France here on Friday night.

Hussain said that the economic crisis in Pakistan was not due to the global recession instead it was the steep rise in inflation that had crippled the nation.

He further voiced that rising oil prices had fuelled the inflation in the country. A single barrel had risen from $50 to $150 threatening the country with hyperinflation.

The dean stated that the financial situation of Pakistan was far worst than 70s and 80s and the IMF aid was essential to control the dwindling economy. He further held that even on the international front, the global economy’s GDP this year was the worst in recent history.

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Opportunities for Pakistan in the Global Financial Slump: Economistan

FREE MARKETS:Many opportunities abound for countries like Pakistan due to the dynamics of the essential commodity prices coupled with low shipping rates. Time to harness these to our advantage.

LIGHT AT THE END OF THE TUNNEL
By Saad Sarwar Muhammad

Monday, November 17, 2008

The whole world is undergoing a major financial crisis which has caused the downturn of almost all the developed world economies with job losses, bailouts and financial losses becoming the order of the day. In such unprecedented times of financial trouble the developed world is looking towards developing countries with huge reserves and financial muscle. Countries like China, Saudi Arabia and Turkey fit the bill. They were invited in the recently held summit of the G-20 to help the developed economies recover from the slump and in some way bail out the developed countries from the fiasco they are in.

The world has been undergoing a rollercoaster ride when it comes to the prices of different commodities, the stock market index levels and the value of dollar and yen versus other major currencies. Oil and Gold are two commodities that have hit a nosedive in recent times. Iran has reportedly given the intent to convert its reserves into Gold in order to overcome the deficit that can result in the reduction of price of oil. The value of dollar and yen is soaring at a time against major European currencies giving the indication of more trust in the resilience of the US economy as compared to the EU.

Pakistan has been suffering its own financial crisis lately, which somehow seems unrelated to the recent global recession. Pakistan’s problems have mostly been homegrown based on the energy crisis due to shortage of alternative energy power sources such as hydel, wind, solar and to some extent nuclear. Pakistan’s financial crisis has resulted from the withdrawal of funds from Pakistan’s stock market, the Karachi Stock Exchange (KSE) since the coming of the new civilian government. Pakistan’s stock market, KSE, has lost close to $36 billion dollars this year in market capitalization. Resultantly, the Pakistani rupee has also borne the brunt with the value of rupee falling from around 60 to a dollar from the beginning of the year to around 80 to a dollar at the moment (many currency dealers have also been arrested in the wake of the rupee devaluation, famous among them the firm of Khanani and Kalia). Not to mention the floor imposed on the KSE to allow the stock market to breathe a sigh of relief. The sigh has converted to deep sleep as the floor remains imposed after many many weeks.

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China offers $500 million for Pakistan: domain-b

China has offered to lend up to $500 million to Pakistan as part of its obligation to address concerns over the global financial market crisis and the ensuing economic slump.
China's offer was announced in a statement issued by Shaukat Tarin, economic adviser to Pakistan's prime minister.

The move comes after the Japanese offer to lend up to $100 billion to an IMF bailout fund.
China and Japan are the two Asian countries with the largest dispossable resources at their command. But, for China, the only country with a larger foreign-currency stock than Japan, with nearly $2 trillion in reserves, it's a much smaller donation.

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Global crisis hits India’s exports: The News

Tuesday, October 28, 2008
NEW DELHI: The global economic crisis has hit India where it hurts the most as over a dozen job-oriented export sectors slipped into disarray showing up to 70 per cent negative growth last month over a year-ago period, the Press Trust of India news agency reported on Monday.

Alarmed by sharp decline in export value in tea (-20 per cent), handicrafts (-70 per cent), carpets (-32 per cent), oil meals (-50 per cent), man-made yarn (-17 per cent), cotton yarn (-19 per cent) and marine products (-19 per cent), the commerce ministry is likely to recommend the lifting of export curbs on items like steel and agro products.

At a high level meeting, convened by Commerce Secretary G K Pillai on October 24, it was pointed out that the government needs to “re-look” at all export restrictions. “The global financial crisis is significantly impacting Indian exports and the impact could be more in the coming days,” said an official involved in the stock-taking exercise.

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