Dec 23 - Dec 29, 2002   
ISSUE # 51  

The GoP has initiated various measures to eliminate Riba from the prevailing banking system in the country. Pakistan is not trying to reinvent the wheel. It can benefit from the experience of other Muslim countries like Bahrain, Malaysia, Sudan and Iran. In this Cover Story efforts have been made to identify the factors impeding the development of Islamic banking in the country, the central bank policy and the facets of proposed regulatory framework.


Oil marketing companies (OMCs) are demanding for an increase in their margin from existing 3.5 to 4 per cent. They are of the view that the margin is the lowest in the region. They also say that increase in margin would not affect the price level of POL products, as the main cause for high prices of POL products is the government levy. Government using the energy sector as a big tool for generating revenues. This sector alone contributes over Rs60 billion to the exchequer.


Textile machinery exhibition and Yarn fair in Istanbul are going to be the major events of the textile industry in the year 2003. A large textile delegation from Pakistan is likely to visit Turkey to witness these fairs. Turkey is a major buyer of textile products from Pakistan. The trade ties between Pakistan and Turkey is getting strong due to mutual economic interest. Strategically, Turkey is significantly positioned as the corridor to the European Union, which is becoming a big market for Pakistan textile products.