FINANCE

 

Sep 16 - 22, 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF


WB TO GIVE $200M THIS YEAR

The World Bank will offer $200 million during 2002-2003 to improve Pakistan's balance of payment position. Sources in the local multilateral agencies said on Tuesday that this support would be the third Structural Adjustment Credit (SAC-3) , currently being finalized between the World Bank and Pakistan.

 

Earlier, $500 million, was offered to Pakistan in June. Last year, the Bank gave $350 million.

The third credit will be extended from the Bank's International Development Assistance (IDA) window.

The Pakistani and World Bank officials are also discussing new funding for improving tax administration through IT and better training of the personnel of the Central Broad of Revenue (CBR).

Sources said besides SAC-3, a considerable amount out of Bank's planned $600 million assistance meant for the current year, would be given for improving the tax administration of the CBR.

A decision has also been taken by the World Bank to provide $100 million and $90 million for on-farm management programmes of Sindh and NWFP, respectively.

Sources said the World Bank, IMF and the Asian Development Bank (ADB) were extending necessary support in the hope that Pakistan would generate a surplus income of nearly one billion dollar annually till 2004 or about 1.5 per cent of the Gross Domestic Product (GDP). This will be in sharp contrast to average annual resource deficit of $1.5 billion that occurred in the 1990s. This would require major export expansion as well substantial import saving. In addition, the Bank expected that the government would also mobilize at least $3 billion from privatisation sales.

FDI GROWS BY 74PC IN JULY

Foreign Direct Investment (FDI) was $42.4 million in July 2002 compared to $24.4 million of the corresponding of last year.

According to details released by the Board of Investment (BoI) on Wednesday, the FDI registered 74 per cent increase with the US as top investing country which brought in $23.7 million of investment in Pakistan.

Other top investing countries include Saudi Arabia ($3.5 million) United Kingdom ($2.8 million), United Arab Emirates ($2.7 million), France ($1.7 million) and Japan ($0.7 million).

The leading sectors in which FDI has come include: oil and gas, transport, financial business, personal services, trade and communication.

It has been projected that with the sale proceeds from the privatization of United Bank Limited (UBL) and other pipeline transactions, the FDI during the current financial year will cross $1 billion mark.

CHINA TO INVEST IN TEXTILE SECTOR

Leader of 12-member Chinese textile delegation Cao Xinyu said on Tuesday that Chinese companies are willing to form strategic linkage with their Pakistani counterparts in textile sector.

Cao, who is also vice chairman of China Chamber of Commerce for Import and Export of Textiles (CCCT), stated this in a meeting held with the Minister for State and Chairman Export Promotion Bureau (EPB), Tariq Ikram, at EPB offices.

He said that over the past two years, China has become, for the first time a capital exporting nation with $7 billion invested abroad.