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Jun 05 - Jun 11, 2000

  1. International
  2. Finance
  3. Industry
  4. Policy
  5. Trade
  6. Gulf

5pc growth rate projected for next year

The finance ministry has proposed a 05 per cent growth rate for the next year against a projected achievement of about 4.5 per cent in the GDP growth rate for the current fiscal year.

The proposed growth rate for the next year has been fixed on the hope that the rate of inflation during the year would be kept pegged to 4.5 per cent and monetary expansion to 09 per cent.

Next year the exports are projected to grow by a hefty 11 per cent and imports by a lowly 3.6 per cent as the government expects a sustained growth in agricultural production, a significant revival of the manufacturing sector, lower prices of oil and its products and a marked increase in competitiveness in the external sector.

The trade account for the next year is projected to be in deficit by $1.30 billion against a projected deficit of $1.86 billion for the current year by end June 30.

The prospects for the invisible account have been projected by these estimates to continue to be governed next year by the behaviour of workers' remittances, and the inflow of remittances for 2000-2001 are projected at $1.1 billion against $950 million this year. Allowing for other invisible receipts and payments, the surplus on invisible account is anticipated to decline to $44 million from a surplus of $167 million in 1999-2000.

With a deficit of $1.30 billion on the trade account and a surplus of $44 million on the invisible account, the current account deficit is estimated to decline to $1.26 billion (2 per cent of GDP) in 2000-2001 from $1.70 billion (2.8 per cent of GDP).

The capital account is projected to improve next year because of the expected increase in the flows of both official and private long-term capital, with gross disbursement of official development assistance going up to $2.0 billion, largely on account of disbursement of programme loans and commodity aid.

Private long-term capital is expected to increase significantly and after allowing for other capital movements (outflow), a surplus of $896 million is projected to occur in the overall balance next year as compared to a deficit of $1.60 billion during 1999-2000.

Oil, gas discovered in Potohar

Federal Minister for Petroleum and Natural Resources Mr Usman Aminuddin said here on Tuesday that oil and gas was discovered in Pariwali area of Potohar region by Pakistan Oil Filed Limited (POFL).

The discovery was made at Well No.3 of Pariwali.

The minister termed it a significant find because this proves Dhak Pass Formation bears oil and gas.

He said the new discovery would save a sum of US $50 million annually.

During production test at 40/ 64 choke the well flowed 2500 barrels per day of oil and 8.3 MMSGFD of gas at a flowing pressure of 1000 PS1. The gravity of oil is 39.2 degree AP1.

Pariwali field was discovered by POFL in 1994 after side tracking of original Pariwali Well No. 1 drilled by the then joint venture operator M/s Occidental to a depth of 15,264 feet in Sakesar Formation of Eocore age.

Cooperatives for weaving sector

The federal government is likely to introduce sectoral interventions in weaving segment that envisage formation of co-operatives for power/auto looms in which some small manufacturers can set up their machines under one roof and run the business as one enterprise.

Official sources told on Tuesday that the commerce ministry officials were working on the new package of incentives for the sector in the light of a suggestion made in the 'textile vision 2005' that incentives must be given to the people having a unit larger than 20 looms. "This will move the entrepreneur to go for larger units, thereby, leading to economies of scale," sources added.


AT&T Corporation has started its operation in Pakistan from Thursday, says a press release. In continuation of worldwide sale of IBM Global Network to AT&T Corporation, IBM and AT& T announced the completion of transaction for Pakistan, on Thursday.


National Tariff Commission has accepted a review application from A.W Pharma, on three pharmaceutical raw materials. The raw materials are: ciprofloxacin, norfloxacin and pyrazenamide (PCT Nos 2933.4000 and 2933.9000), which are importable at the rate of 10% duty.

Fruit output improves

Area under orchards in NWFP and adjoining Federally Administered Tribal Areas recorded an increase by around 88 per cent during a span of 14 years, according to official sources.

With increase in orchards cover, fruit productions also recorded improvement by around 108 per cent. The total area under orchards increased from 24,601 hectares in 1985-86 financial year to 46,273 hectares in 1998-99 financial year.

PTCL mobile service

The Pakistan Telecommunication Mobile Ltd. (PTML), a subsidiary of PTCL, will launch its mobile telephone service from January 2001.

Uzbek offer for joint ventures

Uzbekistan has offered joint ventures to Pakistani ginners and cotton traders in a bid to moderize its ginning industry and to make it cost-effective.

The offer follows Uzbek's move to partially privatize ginning sector, which the local ginners claim, signals a major shift from the 70-year old Soviet method of cotton processing in the public sector.

"The offer could pave the way for a massive two-way trade in textiles", said a dealer.