Aug 02 - Aug 08, 2004  
ISSUE # 31  

The trade policy 2004-05 in fact is an extension of the federal budget announced in June this year. This would augment the realization of the targets specially an export target of $13.7 billion, establishment of several special zones, improvement of infrastructure facilities in the existing industrial estates and some bold fiscal decision exempting various sectors from taxes and duties, which would ultimately help an enabling atmosphere for doing business in Pakistan.



The central bank has issued Letter of Acceptance (LoA) to Ibrahim Group, which submitted the highest bid of Rs 14.2 billion for over 75% shares of reconstructed capital of Allied Bank of Pakistan (ABL). It is the fifth largest bank of Pakistan but has been suffering from serious financial problems. ABL had released its last financial accounts for the year ending 1999. The delay in release of financial accounts had become a serious concern.

The central bank has issued the Monetary Policy Statement and expressed the intent for curbing inflation and eroding rupee value against dollar. SBP's tightening of monetary policy has been evident for some time. However, the key reasons for higher inflation in the country are said to be sky rocketing international prices of crude oil and rising prices of food items in the domestic market.