Sada-e-Watan Sydney ™
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An Open Letter of H.E. Syed Jalil Abbas Jilani about Economic Situation in Pakistan
Canberra
Date: 05.05.2009
PAKISTAN ECONOMIC UPDATE APRIL 2009
I would like to update my Pakistani/Pakistani-Australian brothers and sisters about the economic situation in Pakistan.
2. Despite the incidents of terrorism and the negative media reporting, Pakistan’s economy has continued to grow. The economic revival has begun as is reflected by the following facts:
Exports grow by 31.47 percent
Exports from Pakistan during the first eight months of current financial year witnessed increase of 31.47 percent in terms of rupees, as against the exports of the corresponding period of the last financial year.
Services sector to drive growth
Growth in the services sector would rive the GDP growth in 2008-09 while fiscal deficit target of 4.2 percent of GDP and current account deficit of 5.9 percent would be achieved.
FDI increases during July-February 2008-09
Foreign Direct investment has reached $2794.4 million during July-February 2008-09 as against $2789 million in the comparable period of last year, thereby, depicting an increase of 0.2 percent.
FBR collects revenues of Rs.810.32 b in 9 months
The FBR collected Rs.810.326 billion revenue during the first nine months of the current fiscal year.
Forex reserves cross $11 billion and keep rising
The country’s liquid foreign exchange reserves have reached $11.171 billion on week ending at April 04, 2009 as compared with $10.090 billion the previous week, data released by State Bank of Pakistan shows.
Gulf Remittances
Pakistani expatriate workers wired home a record $739.4 million during March 2009 showing an increase of 22.7 percent over the preceding month. Pakistanis working overseas sent $5.66 billion home during the first nine months to March 31, 20 precent up on the same period last year. Pakistanis in the United Arab Emirates (UAE) sent back $175 million, up from $112 million in March 2008, and 151 million from Saudi Arabia compared to $120 million in the same month last year.
Non-textile exports post 18.28% growth
The non-textile goods posted handsome growth of 18.28 percent in the first eight months of the current fiscal year compared to textile products export which decreased 5.60 percent in the same period.
Trade deficit drops by 12.51%
Pakistan’s trade deficit declined by 12.51 percent during first nine month July-March period of current fiscal year 2008-09 with total deficit at $12.709 billion against the deficit of $14.527 billion in same period of last fiscal year 2007-08.
Pak China to cooperate in Auto Industry
An automotive4 assembly plant would be setup in Punjab with the help of a Chinese company at a cost of US$ 30 million. Agreement to this effect was signed at Chinese major city, Mianyang, between Commerce and Sourcing House (CASH) a Pakistani company registered in Hon Kong and Shenzen and Mianyang Huarui Automotive Co. Ltd.
Pak-US collaboration for $24 million energy project
United States Agency for International Development’s (USAID) 3-year, $24 million Energy Efficiency and Capacity Building project.
KSE recovers 17 percent during Jan-Apr period amid sluggish activity in regional markets
Karachi Stock Exchange (KSE) 100 Index witnessed a recovery of 17 percent in first quarter of 2009 at a time when the performance of regional markets remained sluggish. The local institutions and high net worth individuals provided support the market.
Government clears Rs.80.15bn circular debt
The federal government has paid Rs.80.15 billion to private power companies to resolve circular debt issue, while the remaining dues would be paid by June this year.
Bank resilient enough to cope challenges under strong oversight: SBP Report
According to State Bank of Pakistan’s Quarterly Performance Review of the Banking System for the quarter ending December 31,2008, the asset base of the banking system grew 2.6 percent over the quarter to reach Rs.5,653 billion, well supplemented by 3.6 percent and 7 percent growth in deposit and shareholder’s equity, respectively.
425 megawatts Nandipur power project: $150 million credit deal signed with foreign banks consortium.
A foreign banks
consortium, comprising BNP Paribas, HSBC Bank plc, the Export-Import Bank of
China, has signed a Sinosure buyer credit facility agreement of 150.151 million
dollar with Northern Power
Generation Company Limited for the construction of 425 MW combined cycle power
project at Nandipur.
Federal Cabinet okays purchase of Iranian natural gas
The Federal Cabinet accorded approval to construction of Pakistan-Iran gas pipeline and gave the go ahead for purchase of 750 million cubic feet gas from Iran to fulfil the growing local requirements.
Thar Coal and Power Technical Assistance
The executive board of the World Bank (WB) has considered Thar Coal and Power Technical Assistance worth $26 million for Pakistan.
Italians keen to invest in olive oil production
Italian investors are keen to invest in olive oil production in Pakistan, said Italian Ambassador Vincenzo Prati.
US, Pakistan to collaborate in $24m energy project
A joint statement of collaboration was signed between the United States Government and the Ministry of Finance of the Government of Pakistan. The signing marked the announcement of the United States Agency for International Development’s 3-year, $24 million Energy Efficiency and Capacity Building project, according to a US Embassy announcement.
Textile sector posts 23% growth in profits
Amid declining exports, textile sector posted handsome growth of 23 percent in its profits, which indicated the viability of the sector in current recessionary economic situation.
First 220kv transformer made in Pakistan
The first locally manufactured 220Kv transformer rolled out at Siemens Industrial complex at SITE. This was a landmark moment for the power industry and the first transformer was dispatched to WAPDA network after a simple ceremony attended by WAPDA and Siemens officials.
Pakistan offers farmland to foreign investors
Pakistan is offering one million acres of farmland, protected by a special security force, for lease or sale to countries seeking to secure their food supplies. Gulf Arab countries, mainly reliant on food imports, have been seeking farmland in developing nations to secure supplies and have expressed interest in Pakistan’s offer.
Pakistan doing well on economic front: WB
The World Bank has stated that the scale of the donor pledges made on April 17 in Japan was a manifestation of regard for the tough measures the economic team led by Shaukat Tareen has taken in Pakistan in the past few months.
NIB Bank profit jumps 337 pc
NIB Bank has announced a huge jump of 337 percent in its net profit at Rs.400.3 million for the first quarter of current calendar year 2009 as compared to Rs.91.5 million profits the Bank declared in the same quarter last year.
OGDC posts Rs.44.4bn profit, announced Rs.2 dividend
Oil & Gas Development Company (OGDC), the giant oil and gas exploration and production concern, reported a net profit of Rs.44.4 billion for nine months ended March 31, 2009.
Jalil Abbas Jilani
High Commissioner
