Emerging Markets: Stumble or Fall? Economist

Will the global financial crisis halt the rise of emerging economies?

NOBODY talks about “decoupling” any more. Instead, emerging economies are sinking alongside developed ones. In 2008 emerging stockmarkets fell by more than those in the rich world, and financial woes forced countries such as Hungary, Latvia and Pakistan to go cap in hand to the IMF. Taiwan’s exports have plunged by 42% over the past year, and South Korea’s by 17%; even China’s have shrunk. Singapore’s GDP fell by an annualised 12.5% in the fourth quarter of 2008, its biggest drop on record. Is this the end of the emerging-market boom?

Over the five years to 2007, emerging economies grew by an annual average of more than 7%. But in the past three months their total output may have fallen slightly, according to JPMorgan, as the fall in exports was exacerbated by a sudden drying up in trade finance. For 2008 as a whole, average growth in emerging economies was still above 6%, but recent private-sector forecasts suggest that this could slip to less than 4% this year. That is grim compared with the recent past, though still robust set against an expected 2% decline in the GDP of the G7 countries.

Short-term pain is only to be expected. But some economists argue that emerging markets’ longer-term prospects have been badly hurt by the global financial crisis. From Brazil to China, they claim, the boom was driven largely by exports to American consumers, easy access to cheap capital and high commodity prices. All three props have now collapsed. In particular, as America’s housing bust causes households to save more, they will import less over the coming years. This could reduce emerging economies’ future growth rates.

For more on this article, please click on the following link: Emerging Markets: Stumble or Fall? Economist

Mobile Phone Repair Industry of Pakistan: Pakistaniat

Babar Bhatti

The huge influx of imported mobile phones in Pakistan has spawned a whole industry around mobile phone repair work. The trend of mobile repair as a small business in Pakistan has taken off rapidly in the last few years. One reason for this could be the increase in handset prices caused by higher duty on handsets and falling value of Rupee. Most of these ”repair technicians” lack formal training and have most likely picked up mobile repairing skills on the job.

The small mobile repair shops have opened up everywhere. In Lahore, markets like Hafeez centre and Hall road are among the most popular for mobile repair work. There are signs outside these shops which claim that they can repair and unlock phones from anywhere in the world. These shops charge around 300 to 500 Rs to unlock a phone, depending on the model and difficulty involved. These shops are equipped with tools, hardware and Internet access (for access to unlock codes I guess).

For more on this article, please click on the following link: Mobile Phone Repair Industry of Pakistan: Pakistaniat

Official claims big rise in arms exports: Dawn

By Ihtasham ul Haque


ISLAMABAD, July 17: Pakistan's defence exports have tripled to around $300 million because of the quality of its ammunition, anti-tank guided missiles, rocket launchers and shoulder-fired surface-to-air missiles.

"Our defence exports have been rising substantially because the arms and ammunition we manufacture meet international standards," Maj-Gen Mohammad Farooq, Director General of the Defence Export Promotion Organisation (Depo), told Dawn.

"We even won a contract in the face of tough competition from developed countries to manufacture parts of Boeing aircraft," he said.

Although he wasn't precise about earnings from arms exports, he said: "It has tripled and it is very good for Pakistan."

He said arms trade was a complex business and it had to be on a government-to-government basis. Pakistan was answerable to the international community in terms of ensuring that the arms did not fall into wrong hands.

He said exports to South Asian, Middle Eastern and African countries had increased significantly.

He said there was a time when the country's defence industry exported only small arms and ammunition, but now their range had diversified and developed countries were also purchasing Pakistan's military hardware.

He said optical instruments like night vision devices, laser range-finders and designators, laser threat censors, artillery armour mortars and ammunition, mine detectors, anti-tank rifles, missile boats, different types of tear gases, fuses of unarmed vehicles, security equipment and sporting and hunting guns were also being manufactured in Pakistan.

"The fuses are being purchased by countries like Italy, France and Spain," he said.

For more on this article, please click on the following link: Official claims big rise in arms exports: Dawn

Pakistan to receive $60 m Rotavirus vaccines to check Diarrhea: APP

ISLAMABAD July 16 (APP): Pakistan would receive $60 million worth of Rotavirus vaccines from the Global Alliance for Vaccine Immunization (GAVI) for its expanded programme of immunization to check Diarrhea. Diarrhea is recognized worldwide as the No. 1 cause of hospitalization and the second leading cause of infant mortality under 5 years of age.

Rotavirus is the most common cause of severe diarrhea in children world-wide and diarrheal deaths in developing countries. Although it infects every child in the world before the age of five years, the risk of dying from rotavirus infection is greater for children born in the developing world in countries including Pakistan.

Pakistan would finance only Rs. 100 million for vaccines valued at over $60 million.

GAVI has provided special funding to enable the inclusion of Rotavirus vaccines in EPI programmes as it is considered "a new priority vaccine".

All GAVI eligible countries are required to send a country proposal by September 25, 2008 for Rotavirus vaccine in order to qualify for this funding.

Over 90 per cent of the 600,000 annual deaths caused by Rotavirus occur in developing countries. Mortality is highest in South Asia and Sub Saharan Africa where it is estimated that about one in 200 children born will die of Rotavirus.

For more on this article, please click on the following link: Pakistan to receive $60 m Rotavirus vaccines to check Diarrhea: APP

Pakistan's IT exports reach $175 million in 2007-08: PSEB MD: Online News

ISLAMABAD:Pakistan Software Export Board (PSEB) has reached the figure of USD 175 million annual IT exports during the financial year 2007-08 about USD 13 million more than the USD 162 million target set for the said year.

"We are satisfied with the pace of progress of the local IT sector and ambitious about its further growth in future as this is the only industry in Pakistan that has registered a remarkable growth during the last five years," MD PSEB Talib Baloch said in a recent statement issued here.

Pakistan IT exports of US$116 million for the FY06-07 were also in excess to the set target of US$108 million, he disclosed. "This sector has consecutively registered 50 per cent annual growth in exports for the last five years showing its tremendous potential. If nurtured fully the IT industry could result in voluminous economic and commercial benefits."

He was of the view that the country's annual IT related exports could have been over USD 220 million had the power crisis not hit the national economy. "Longer load shedding hours have adversely affected the productivity of many ICT companies. However, despite these odds, PSEB is hopeful to exceed the targeted volume of exports in the forthcoming year(s)," he added.

For more on this article, please click on the following link: Pakistan's IT exports reach $175 million in 2007-08: PSEB MD: Online News

F-7P crosses sound barrier: It was sonic boom, not bomb: Daily Times

RAWALPINDI: An F-7P fighter aircraft of Pakistan Air Force (PAF) on Monday crossed the sound barrier, causing a big sonic boom and creating panic in the twin cities and other areas where it was heard loudly.

The boom was heard at 11am not only in the twin cities but also in Chakwal, Attock, Kahuta, Gujar Khan, Kallar Syedian, Murree and some parts of Kashmir.

The aircraft was on a scheduled Functional Control Flight Mission when it transited from 40,000 feet to 15,000 feet altitude, resulting into a mega sonic boom. The boom wave travelled fast from the higher altitude to adjacent areas, it said.

At first, it was mistaken for a bomb blast, fears of which grew stronger from the fact that the garrison town has been a target of suicide attacks for quite some time.

"We have combed Rawalpindi and checked all the main areas and hospitals, but there is nothing," a senior city police official told Reuters about 45 minutes after the sonic boom was heard.

For more on this article, please click on the following link: F-7P crosses sound barrier: It was sonic boom, not bomb: Daily Times

Pakistan Ranks Above Iran and Indonesia in the Newest E-readiness rating by The Economist Intelligence Unit

By Saad Sarwar
Pakistan ranked sixty fourth in the latest e-readiness ranking released by the Economist Intelligence Unit.

Pakistan's ranking has come down one spot from 2007 when it was ranked sixty third. However, Pakistan is ranked above Vietnam, Kazakhstan, Algeria, Indonesia, Azerbaijan and Iran. India is ranked fifty fourth while the top spot goes to the US, followed by Hong Kong, Sweden, Australia, Denmark and Singapore.

For the complete report on E-readiness by EIU please click here.

US House approves $ 150 million new assistance for Pakistan: APP

WASHINGTON, June 24 (APP): The U.S. House of Representatives has approved $150 million in new assistance for Pakistan to address economic needs in the next fiscal year.

The assistance is included in the war supplemental budget measure to support efforts into the year 2009, beginning from October 1, 2008.

For more on this article, please click on the following link: US House approves $ 150 million new assistance for Pakistan: APP

Makro to invest $300m in Pakistan: The News

Wednesday, June 25, 2008
ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani on Tuesday said all economic sectors in Pakistan are open to foreign direct investment and a Level-playing field is provided to both local and foreign investors allowing 100 per cent foreign equity.

He was talking to Farhad Zulfiqar, Executive Chairman Makro Habib Pakistan, a joint venture between Makro Cash and Carry, a leading Dutch wholesaler of food and non-food products in Asia and South America and House of Habib, who called on him here at the PM House this morning.

For more on this article, please click on the following link: Makro to invest $300m in Pakistan: The News

Wacetec to Deploy Pakistan's Largest Information Display System: PR.com

Karachi, Pakistan, June 23, 2008 --(PR.com)-- Wavetec has been selected by Islamabad Stock Exchange to deploy Pakistan's largest Information Display System. The information wall is going to be one-of-its kind project in Pakistan; covering almost 5 floors of Islamabad Stock Exchange building.

"We have hit a great milestone by achieving this project and certainly it's the result of our relentless efforts and strategic relationship with clients."
Ayaz Faiz, Country Sales Manager – Wavetec.

For more on this article, please click on the following link: Wacetec to Deploy Pakistan's Largest Information Display System: PR.com

Vietnam, Pakistan outdo India in US, EU textile mkts: Economic Times

NEW DELHI: Smaller countries like Vietnam, Bangladesh and Pakistan are outdoing India in textile and clothing exports to the US and EU in the post-quota (2005-2007) period, confirmed a FICCI study.

Vietnam's share in EU25's imports of textile and clothing has increased from 0.8% in 1995 to 1.6% in 2007. India has only been able to keep its rank intact in EU market at number three, while Bangladesh has impoved from sixth position in 2002 to fourth 2007. Similarly, in the US, Vietnam seems to be fast catching up with India's exports.

It may be noted that the appreciation of rupee till a few weeks ago had been hitting India's textile exports. Of late, there are signs of a turnaround. Back home, textile companies are investing heavily thanks to the technology upgradation fund scheme.

Some firms are also trying to expand their manufacturing bases to other countries through either acquisitions of greenfield plants or by taking over firms in low cost economies.

For more on this article, please click on the following link: Vietnam, Pakistan outdo India in US, EU textile mkts: Economic Times

Air Arabia to start daily flights from Karachi: The News

Thursday, June 19, 2008
By Saad Hasan

KARACHI: Air Arabia is looking forward to starting daily flights from Karachi to its hub in Sharjah besides adding Sailkot to its network of two existing destinations, which also includes Peshawar, a top airline official told The News on Wednesday.

The decision to enhance frequency and expand reach in Pakistan reflects UAE's first budget carrier's endeavour to capture the growing middle class in the Southeast Asian region, said Shalini Rajan, Regional Manager for Pakistan, India, Bangladesh, Nepal, Turkey and CIS countries.

"Income of people has increased and there has been a rapid growth in the number of new cost-conscious entrepreneurs," she said, expressing confidence that rising inflation will not hurt the number of people traveling by air.

Air Arabia has grown phenomenally since its launch in 2003 as a low-cost carrier. In a span of just five years, it has carried seven million passengers and expanded the network to 41 destinations.

For more on this article, please click on the following link: Air Arabia to start daily flights from Karachi: The News

Pakistan wrap-up: Roby and Marco in blizzard high up on GII: K2climb.net

(K2Climb.net) Focus is on Roby Piantoni and Marco Astory, high up on GII after a snow storm forced them back just meters shy from the summit.

Climbers on K2 retreated back to BC and diplomacy is ahead enroute to Distaghil Sar.

Gasherbrums: Storm thwarts the Italians' summit bid on GII

Sunday, Roby Piantoni and Marco Astori summited G1 and went straight for GII. They checked in Monday from C2 (6,400m) on Gasherbrum La, the col connecting both peaks. "We are resting, eating and drinking, weather is so-so." Roby reported.

Yesterday, in his latest call, Piantoni stated they were at 7,200 meters on GII's East ridge. "I don't like how the weather looks," Roby said. "Let's see what happens."

Later that day, Marco's website said the climbers had climbed further up, until sudden high winds and whiteout forced them back, apparently not far from the top. At 3:00 pm, local time, Roby and Marco were back at 7,300m, crouched behind a rock outcrop to shelter from the wind.

Slovaks Dodo and Vlado are packing up in BC and will move to K2's BC as fast as possible.

For more on this article, please click on the following link: Pakistan wrap-up: Roby and Marco in blizzard high up on GII: K2climb.net

Pakistan vows to defend sovereignty after Karzai threat: AFP

ISLAMABAD (AFP) — Pakistan's foreign office pledged that the country would defend its territorial sovereignty, state media said Monday after Afghanistan's leader said cross-border attacks on militants were justified.

Afghan President Hamid Karzai threatened on Sunday to attack Taliban insurgents on the soil of his supposed ally in the "war on terror", saying his war-torn country had a right to do so in self-defence.

"Pakistan shall defend its territorial sovereignty," foreign office spokesman Mohammad Sadiq was quoted as saying by the government-run Associated Press of Pakistan news agency.

For more on this article, please click on the following link: Pakistan vows to defend sovereignty after Karzai threat: AFP

Editorial: Alienating Allies: Arab News

The slaying in a US airstrike on Tuesday of 11 Pakistani paramilitary troops on the Pakistani side of the Afghan border is an outrage which demonstrates the bitter failings of the Bush White House foreign policy. Put bluntly, the Americans have still not learned to respect their allies and understand that those allies cannot fall into precise steps behind Washington's lead in the war against terror.

More than a thousand Pakistani troops have perished fighting Taleban militants and their local supporters in the North West Frontier region bordering Afghanistan. President Pervez Musharraf tried the big stick to smash Taleban support and failed. Now Pakistan's new coalition government is taking the sensible approach of seeking to negotiate with the local tribes in order to end their armed confrontation with Islamabad and, by extension, their support for the Taleban.

Whatever Washington's suspicions, there may still be Taleban sympathizers in the Pakistan Army and in particular, its intelligence services, no one can doubt the country's deep opposition to terrorism. A thousand dead soldiers are surely proof enough of that.

For more on this article, please click on the following link: Editorial: Alienating Allies: Arab News

Rs 1.5m prize at Pakistan Mind Games: Daily Times

KARACHI: Prize money of Rs 1.5 million would be at offer in the inaugural Pakistan Mind Games to be held here from August 14 to 17, said chairman, Mind Sports Association of Pakistan (MSAP), Khurshid Hadi, Saturday.

This prize will be on offer for the bridge, chess and scrabble events of the games which are being launched on the occasion of the 61st independence anniversary of Pakistan. The distribution of the prize money is being worked out and will be finalized in during the course of an upcoming meeting of MSAP.

For more on this article, please click on the following link: Rs 1.5m prize at Pakistan Mind Games: Daily Times

Saudis plan to grow crops overseas: Financial Times

By Andrew England in Riyadh

Published: June 12 2008 17:42 | Last updated: June 13 2008 01:52

Saudi Arabia has unveiled plans to develop large-scale overseas agricultural projects to secure food supplies, revealing that Riyadh is in discussions with Ukraine, Pakistan, Sudan, Turkey and Egypt.

Abdullah al-Obaid, the deputy agriculture minister, told the Financial Times the government was planning to set up projects of at least 100,000 hectares in several countries to grow crops such as wheat, corn, rice, soyabeans and alfalfa, a feed for livestock.

The move, which is also aimed at building up strategic reserves, comes as food prices have doubled over the past two years and a series of trade restrictions by exporting countries have limited the oil-rich kingdom's ability to secure supplies.

The massive rises in food prices, particularly wheat and rice, have caused a number of Arab countries to look to develop schemes in other nations. Food costs have also been a significant contributor to the double-digit inflation that is causing mounting concern in the Middle East.

For more on this article, please click on the following link: Saudis plan to grow crops overseas: Financial Times

Pakistan Reduces tariffs on Palm Oil import from Malaysia: Online News

ISLAMABAD: Under Closer Economic Partnership Agreement (MPCEPA) signed between Pakistan and Malaysia in November, 2007, Pakistan has reduced the tariffs on seven (7) palm products by 10% Margin of Preference (MoP) with effect from on January 1, 2008, giving a further boost to Palm oil import by Pakistan which is expected to increase by 33% higher in the year 2008 compared 2007.

According to the Commercial Counselor of High Commission for Pakistan in Malaysia, Mr. Majid Qureshi, the tariff will further be reduced by 5% MoP, starting from January 1, 2010, making Malaysia as the first choice for Pakistan to import Palm oil and its products compare to its closest competitors. . The palm oil export to Pakistan by Malaysia has registered 10.4% increase in the year 2007 compared to 2006. In 2007, total export to Pakistan was 10,70,067 tones compared to the year 2006 at 9,68,406 tones.

For more on this article, please click on the following link: Pakistan Reduces tariffs on Palm Oil import from Malaysia: Online News

Executive Summary of the Economic Survey of Pakistan 2007-2008: The News

Wednesday, June 11, 2008
ISLAMABAD: The government on Tuesday released the Economic Survey 2007-08. Following is the Executive Summary of the survey.

Growth and Investment

Pakistan’s economy has shown great resilience against internal and external shocks of very high intensity and grew robustly at 5.8 percent in 2007-08, as against 6.8 percent last year and this year’s target of 7.2 percent. The Commodity Producing Sector (CPS) registered a growth of 3.2 percent in 2007-08 as against 6.0 percent last year owing mainly to the lackluster performance of agriculture and manufacturing. While agriculture grew by 1.5 percent, the manufacturing sector posted a modest growth of 5.4 percent in 2007-08. The large scale manufacturing (LSM) sector witnessed a modest growth of 4.8 percent, down from 8.6 percent last year. The manufacturing sector has been hard hit by political instability, frequent eruptions of incidents detrimental to law and order and the acute energy shortages. In unison with increasing prices for fuel and energy, all these factors have caused slower growth in LSM. Growth in the small scale manufacturing sub-sector moderated to 7.5 percent in 2007-08 from 8.1 percent during 2006-07.

The poor show of the agriculture sector was the result of a sharp deceleration in the growth of the major crops sub-sector, which posted a negative growth of 3.0 percent in 2007-08 as against a healthy growth of 8.3 percent last year. Minor crops registered a growth of 4.9 percent as against the negative growth of 1.3 percent last year. Fishing and forestry exhibited robust growth of 3.8 percent and 11.0 percent, respectively.

The services sector has surpassed the growth target of 7.1 percent and grew by 8.2 percent in 2007-08 as against the actual achievement of 7.6 percent last year. The finance and insurance sector displayed a stellar growth performance of 17.0 percent during 2007-08 as against 15 percent last year. Value added in the wholesale and retail trade sector grew at 6.4 percent as compared to 5.4 percent last year and the target of 7.8 percent this year. The Transport, Storage and Communication sub-sector saw a deceleration in growth to 4.4 percent in 2007-08 as compared to 6.5 percent of last year.

For more on this article, please click on the following link: Executive Summary of the Economic Survey of Pakistan 2007-2008: The News

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Pakistan joins world’s lowest telecom tariff club: The Post

Associated Press of Pakistan

ISLAMABAD: India can no longer claim of being amongst the world's lowest telecom tariffs", as Pakistan boasts of far more competitive mobile services, especially for international (ISD) calls.
So while Indian telecom consumers have been celebrating the benefits of competition and low calling rates, they can now happily push operators and telecom regulators to lower their tariffs further.
The international calls to some of the most frequently called countries from India and Pakistan - such as United States of America (USA), United Kingdom (UK), Canada, Germany and Hong Kong - present a stark comparison of how Pakistani mobile users are so much better-off than the Indians.
"Pakistani operators offer such ISD calls at rates as low as (Pakistani) Rs 1-1.99 per minute. In comparison, Indian mobile subscribers are still paying Rs. 5-6 per minute to call these countries.
In some cases, the ISD rates from Pakistan while calling mobile phones in these countries are slightly higher, but far lower than those available to Indian consumers," says Shalini Singh, a renowned journalist of India, wrote in an article recently published in a leading Indian newspaper.

For more on this article, please click on the following link: Pakistan joins world’s lowest telecom tariff club: The Post