Though the economy for the last so many years was
kept under oxygen tent to keep it get going, the 9/11 incident in a way,
did help in gaining stability at the macro level with foreign exchange
reserves swelling to over $7.5 billion, current account balance showing
improvement of $2.7 billion from $0.3 billion of previous year because
of significant rise recorded in overseas remittances that crossed $2.4
billion mark, and grants and loans from multilateral agencies.
But it is most unfortunate that the much needed and
desired results at micro level of the economy could not be witnessed
where problems are still as grim as they had been ever before. There is
unprecedented unemployment in the country, the cost of living is going
higher on each passing day because of rising trend in POL prices and
utilities resulting in high cost of manufactured goods, thus giving a
crippling blow to the middle class.
Being a single crop (cotton) economy the textile
industry is the largest industrial sector of the economy contributing
over 65 per cent to exports and 38 per cent to the employment and nearly
nine per cent to the GDP.
The new investment being made in the textile industry
for Balancing, Modernization and Replacement (BMR) and at some places
for expansion as well has been going on for last three years, and it has
nothing to do with 9/11 incident. The removal of textile quotas by the
year 2005 as a matter of fact compelled textile industry to upgrade its
plants and machinery to produce quality textile goods at competitive
prices, meeting the challenges of open market competition.
NWFP MOVES TO REVIVE GADOON UNITS
The NWFP Finance Minister Farid Rehman has said that
the matter regarding the restoration of incentives to Gadoon Industrial
Estate would be taken up with the federal government.
This he said while presiding over the NWFP Cabinet's
Sub- Committee on Gadoon Industrial Estate on Thursday.
The committee recommended to the provincial
government to facilitate viable industrial units and develop
infrastructure facilities such as construction of roads, hospitals,
labour colonies, firebrigade facility, etc.
The meeting was also attended by NWFP Minister for
Industries, Mohsin Aziz, District Nazim Swabi, Sher Zaman Sher,
Additional Chief Secretary NWFP, Secretary Industries, DCO Swabi and
other concerned authorities.
ECONOMY'S RATING POSITIVE
Top sovereign rating agencies on Monday reaffirmed
positive outlook for Pakistan's economy while expressing concern over
the transition period and continuity of reform process.
Following a meeting with Finance Minister Shaukat
Aziz, the Moody's rating agency reaffirmed its "B-3" rating
and the Standard and Poor, "B".
Aziz told that the rating agencies were
"appreciative of Pakistan's reform agenda and the improvement in
the macro-economic situation which was reflected in the ratings."
INFLATION ON RISE
Inflation in terms of Consumer Price Index (CPI)
moved up by 3.82 per cent in July-August 2002, over the corresponding
period of previous year, reports Federal Bureau of Statistics.
In its monthly release on Thursday, the FBS further
stated that the Sensitive Price Index (SPI) had spiralled by 5.17pc,
while the increase in Wholesale Price Index (WPI) was of 2.86pc.
PARC TO GET RS445M
Pakistan Agricultural Research Council will get
Rs445m during 2002-03, about 23 per cent more than its allocation for
the previous year.
The new allocation will rectify a major distortion
vis-a-vis the apex farm research body of Pakistan that it raises by more
than 100 per cent the provision for operational activities to 33 per
cent. Out of a total allocation of Rs362 million last year, the council
was left with only Rs62 million (over 20%) for its substantive research
CONSUMER DURABLES INDUSTRY GETS BOOST
What took place in New York and Washington on 9/11
and afterwards in Afghanistan proved to be a blessing in disguise for
the multi-billion rupee consumer durables and home appliances industry,
especially for the manufacturers of air-conditioners and televisions, in
"The sales of local items have gone up
considerably because of better vigilance on the country's western
borders and termination of the Afghan Transit Trade (ATT) in the
aftermath of 9/11," says a manufacturer of air-conditioners.
WATER LEVEL IN DAMS GOING DOWN
Water started depleting in major dams on Sunday in
the wake of a decreasing combined rivers' flow and increasing
requirement for irrigation. Official sources said the Tarbela dam level
dropped by 1.4 feet when 27,200 cusecs water was released to meet the
irrigation needs. The stored water dipped down from 7.3 million acre
feet to 7.2MAF. The water level was 1550.6 feet as against 1552 feet a
The Mangla Lake level came down as 3,300 cusecs
additional water was released; the inflow was recorded at 19,700 cusecs
and outflow at 23,000 cusecs. On Monday, the dam stands at 1205.8 feet
against 1206 feet on Sunday.
JUNEJO FOR INCREASING PER ACRE RICE YIELD
Federal Minister for Food, Agriculture and Livestock,
Khair Muhammad Junejo has emphasized the need to adopt modern techniques
to ensure increase in the per acre yield of paddy crop.
He said while inspecting the new varieties of rice
developed at the Rice Research Institute (RRI), Kala Shah Kaku, on
He said that the farmers should be motivated to grow
the high-yielding varieties of rice and utilize new technologies for
increasing the per acre plant population.