Jul 10 - 16, 2000
Shaukat, IMF discuss fiscal
Finance Minister Shaukat Aziz met the Deputy Managing Director of
International Monetary Fund, Eduarado Anianat on Wednesday and discussed with him a number
of financial matters including Pakistan's new reform package.
The two met at the sidelines of the United Nations Economic and Social
Council's annual meeting. On Tuesday Mr Aziz said Pakistan has been servicing its loans to
IMF and the World Bank without getting any money from these institutions.
Referring to petroleum prices he said these have been de-linked from
Pakistan's budget and are now linked to the prices set up by the consortium of oil
producing nations, OPEC.
In an interview, he said that there will be a quarterly review of the
petroleum prices and the trend operating in the market would be reflected on the petrol
pumps. The next review is to take place on September 15.
The Finance Minister said that public sector corporations like Pakistan
Airlines, Wapda, KESC etc., would have to be restructured and made more efficient and
He said these corporations are a major challenge to the government as
the total fully loaded costs of these corporation is 1.7 per cent of the GDP.
"If we can make these corporations more self-sufficient or even
make them break even, we can save a lot of money," he added.
He said the "chief executive wants to restructure these
corporations and make them viable and in this connection we are reviewing various
corporations including the Steel Mills, Wapda, the highway administration, PIA and KESC to
see how their performance can be improved.
Mr Aziz suggested that a criteria for running a corporation should be
Pakistan to buy Chinese Mig jets, says Musharraf
The chief executive, General Pervez Musharraf, said on Saturday that
Pakistan would buy Mig F-7 fighter jets from China to strengthen its air force for
He was talking to newsmen after performing the ground-breaking ceremony
of the first section of the 640-km-long Makran coastal highway which would eventually link
all the coastal towns between Gwadar and Karachi.
Recalling the deep-rooted relationship with China, he said: "We
are going to have a deal with China because the government wants to make the air force
strong to meet the upcoming challenges.
"We purchase a lot of things from China with whom we have a very
old relationship," said Gen Musharraf, who had last week described the completion of
the Chinese-aided Chashma nuclear power plant as an important milestone in Pakistan's
peaceful pursuit of nuclear technology.
Amended leasing rules
The Securities & Exchange Policy Board (SECPB) at its meeting on
Thursday accorded approval to the Leasing Companies (Establishment & Regulation)
Rules, 2000 which include provisions for further development of leasing business in
Khalid A. Mirza, Chairman of Securities & Exchange Commission of
Pakistan, newly appointed Chairman of the Board, presided over the meeting which was
attended by all the members of the board.
Zahur Mills puts 20,520 spindles on sale
Zahur Textile Mills Limited plans to sell out 20,520 spindles, together
with the building, plant & machinery, so as to raise money for paying off debts. The
fixed assets that are planned to be put on the block form spinning unit-III of this
composite textile company that deals in yarn to cloth.
Surcharge on salary tax removed
The federal government has notified removal of 10% surcharge on the tax
payable by the salaried class, and a further 50 per cent relief from tax liability to full
time teachers and researchers serving in non-profit institutions.
Two notifications were issued on Wednesday, which explain the method of
calculation of tax by the salaried persons under the revised rates for the financial year
2000-20001. SRO 457(I)/2000, dated July 1, 2000.
Single chief for SECP, SECPB
The federal government has decided to unite offices of chairmen
Securities & Exchange Commission of Pakistan (SECP) and Securities & Exchange
Policy Board (SECPB) in a single person for speedy decisions and has appointed Khalid
Mirza of SECP as the chairman of both, SECP and SECPB.
Khalid Mirza replaces Khalil Mian, who was the first chairman of the
board appointed as a private sector member, stated a senior SECP official.
Accord with IPPs vital for US support
The United States has urged Pakistan to resolve complaints of the IPPs
and the problem between Sabre company and the PIA, to win Washington's support for the
package to be considered at the IMF's board meeting in September.
This was stated by the US Consul General, John E. Bennett, in
meet-the-press programme of the Karachi Press Club on Tuesday when asked what Washington
was expecting Pakistan to do for his country's support in the next IMF board's meeting.
Stagnation feared in trade ties
Mr Shun Imaizumal, leader of the visiting Japanese economic mission,
said on Monday that unresolved issues like the IPPs or deferred payments/non-payment of
public credit may lead to stagnation in Pakistan-Japan economic relations.
Speaking at a meeting of Pak-Japan Business Cooperation Committee at the Federation
House, he said honouring of commitments and consistencies in economic policies are vital
for seeking Japanese investment