Swap Dealer

An individual who acts as the counterparty in a swap agreement for the fee (called a spread).
These are the market makers for the swap market. Because swap arrangements aren't actively
traded, swap dealers allow broker to standardize swap contracts to some extent.

Related Terms
• Broker-Dealer
• Market Maker
• Market Maker Spread
• Price Swap Derivative
• Spread
• Swap
• Swap Bank
• Swap Spread
• More Related Terms

A swap is a contract in which two parties engaged in transacting a deal agree to exchange
their respective cash flows or financial assets on which they have decided to trade at
Forex.

These are private management between parties to exchange cash flows according to some
pre-arranged formula. The parties to the swap contract are known as counter-parties. In
swap, one party agrees to exchange his set of selected currency pair or cash flow with the
pre-determined set of cash flows of the other party.

For example, one party is currently receiving cash flow or currency at the decided value
from one investment but like to have cash flow from other type of investment. In such
case, swaps are used to exchange the source of investment to have the cash flow or
currency pairs in terms of Forex to be exchanged within the support of the swap dealer.

Characteristics of swaps:
These are considered to be the special type of financial derivatives used by traders at
capital market to raise funds from their desired sources but they can be used at Forex
trading platform as well with relevance to the regulation of the Forex trade.

• Swap arrangements are tailor-made to the needs of the counter-parties.

• Swaps are not subject to the regulations like futures and options.

• The swaps are bilateral agreements and the potential default risk is there. The swap
dealer can provide a counter-guarantee.
As the swaps are private arrangement between the parties, different types of swaps have
emerged over the years. Swaps are, in fact, a part of financial engineering and attempt to
cope with the requirements of a party.

The features of swaps helped a lot to traders to make arrangement required to make the
trading deals easily and transact the exchange of currency pairs in their desired manner.

Types of swaps: Currency swaps and Interest rate swaps

• Currency Swaps:

A currency swap is the transaction between two parties in which one

party promises to make the series of payment to the other party at the specific date and
value at the exchange for a payment from the other party in different currencies.

In currency swaps, the cash flows of different currencies are swapped. Currency swaps
can be used by firms that operate in one currency but need to borrow in another currency.
For example, say a Company A ltd. And B Ltd. Want to borrow cash in $ and in £
respectively. But A Limited can borrow at cheaper rate than B Limited can borrow $ at a
cheaper borrowing capacity of the other company. The rationale for currency swap lies in
the fact that one borrower has a comparative advantage in borrowing in one currency,
while other borrower has an advantage in borrowing in another currency.

In currency swap, one party holds one currency and swaps it for another currency held by
the other party. The swap arises when one party provides one currency in exchange of
other. The purpose of currency swap is to arrange the funds denominated in other
currency.

• Interest rate Swaps:

Interest rate swap is an agreement between two parties in which

each party makes a series of interest payments to the other at determined dates at
different rates.

At least one of the interest rates is variable, i.e. a floating rate, in the sense that the rate at
which interest payments will be made at a later date is not known. The most common
type of interest rate swap is known as 'Plain Vanilla' swap in which one rate is fixed and
the other rate is floating.
What is Economy of Pakistan:
Pakistan is a South Asian country that was established in 1947. Its neighboring
regions include India, Iran, Tajikistan, Afghanistan, and China. It is located along
the Arabian Sea and has a coastline spanning 1,046-kilometre (650 mi). The
mountain ranges of Karakoram and Pamir in the northern and western highlands
of the country include K2 and Nanga Parbat which are counted among the
highest peaks in the world. The major by-air gateways to Pakistan are
Islamabad, Karachi and Lahore. It can also be reached by train from India and
Iran. Pakistan’s main cities are Quetta, Gawadar, Peshawar, Sialkot, Multan and
Faisalabad.

Pakistan Economy: Profile

Pakistan is a developing country and its economy is the world’s 27th largest
economy based on its purchasing power. However, the country remained
impoverished due to internal political disturbances and negligible foreign
investment, since independence. With rise in development spending by
Islamabad, the country’s poverty levels reduced by 10% from the year 2001 to
2007. The economy grew between 2004-07 due to rise in GDP from 5 to 8%.
This was largely due to development in industrial and services sector irrespective
of severe electricity shortfalls. However, the year 2007 witnessed a lot of political
and economic instability leading to depreciation of Pakistani rupee. The growth of
the economy was affected once again during the 2008 global economic
recession.
 Pakistan is a South Asian country that was established in 1947. Its neighboring
regions include India, Iran, Tajikistan, Afghanistan, and China. It is located along
the Arabian Sea and has a coastline spanning 1,046-kilometre (650 mi). The
mountain ranges of Karakoram and Pamir in the northern and western highlands
of the country include K2 and Nanga Parbat which are counted among the
highest peaks in the world. The major by-air gateways to Pakistan are
Islamabad, Karachi and Lahore. It can also be reached by train from India and
Iran. Pakistan’s main cities are Quetta, Gawadar, Peshawar, Sialkot, Multan and
Faisalabad.

1-Stock Exchange and Stock Trading in Pakistan

2-Role of Karachi Stock Exchange in capital formation.
3-Talks progressing on Sino-Pak currency swap - Pakistan 4-
Defence Forum
4-role stock exchange economy

5-role of agriculture in pakistan economy

Economy in Pakistan
Economy—overview: Today, Pakistan's economy is in much better shape than it was ever before. Pakistan is poised to
catch China in terms of growth for the fiscal year of 2005-2006. In 2004-2005, Pakistan's economy grew by 8.4%, which is
one of the fastest in the region.Progress is taking place throughout society. Thanks to the widespread reforms introduced
by the President, Pervez Musharraf. Foreign companies are investing billions of dollars to pursue the opportunities of a
market of world's sixth largest population. A change is evident throughout the society.

GDP: purchasing power parity—$344 billion (1997 est.)

GDP—real growth rate: 8.4% (2005 est.)

GDP—per capita: purchasing power parity—$2 600 (1997 est.)

GDP—composition by sector:

agriculture: 24.2%

industry: 26.4%

services: 49.4% (1997)

Inflation rate—consumer price index: 11.8% (FY96/97)

Labor force:

total: 37.8 million (1998)

by occupation: agriculture 47% mining and manufacturing 17% services 17% other 19%
note: extensive export of labor mostly to the Middle East and use of child labor

Unemployment rate: 7.4% plus substantial underemployment (2008 est.)

Budget:

revenues: $9.6 billion

expenditures: $13.6 billion including capital expenditures of $NA (FY96/97)

Industries: textiles food processing beverages construction materials clothing paper products shrimp automotive

Industrial production growth rate: 18% (FY04/05 est.)

Electricity—capacity: 13.169 million kW (1995)

Electricity—production: 58.1 billion kWh (1997)

Electricity—consumption per capita: 436 kWh (1997)

Agriculture—products: cotton wheat rice sugarcane fruits vegetables; milk beef mutton eggs

Exports:

total value: $15 billion (FY04/05)

commodities: cotton textiles clothing rice leather carpets

partners: EU US Hong Kong Japan

Imports:

total value: $11.4 billion (FY96/97)

commodities: petroleum petroleum products machinery transportation equipment vegetable oils animal fats chemicals

partners: EU Japan US China

Debt—external: $33 billion (1997 est.)

Economic aid:

recipient: $2.2 billion from all bilateral and multilateral sources (FY96/97)

Currency: 1 Pakistani rupee (PRe) = 100 paisa

Exchange rates: Pakistani rupees (PRs) per US$1—44.050 (January 1998) 41.112 (1997) 36.079 (1996) 31.643 (1995)
30.567 (1994) 28.1 (1993); note—annual average of official rate; parallel market rate is higher

Fiscal year: 1 July—30 June

1-Issue's In Pakistan's Economy

2-Pakistan Economy issues/problems and their Solutions
3-Problems of Pakistan
4-major issues pakistan economy
Major economic issues stare new coalition govt in Pakistan
Islamabad, Mar 17 (ANI): The three major coalition partners of the to-be-formed federal
government in Pakistan, namely the PPP, the PML-N and the ANP, are said to be
devising their future strategy to tackle major economic issues and take practical steps to
control the ongoing inflationary trend.

If a prominent official from one of these parties is to be believed, the three parties have
agreed to continue the privatisation process and also to take short-term and long-term
steps to ensure a quantum leap for boosting the dwindling exports and to avoid fiscal and
external vulnerabilities.

The economic wizards of the three parties are also discussing steps to control the
yawning trade deficit by minimising the imports of luxury items, he said.

“Yes, all the three parties, including the PPP, PML-N and ANP, are evolving a consensus
namely the minimum common agenda, which includes achieving improved macro-
economic situation and controlling the galloping prices, especially of food items,” The
News quoted the person, said to be involved in the consensus-building exercise, as
saying.

He further said that the future coalition also agreed to refrain from further burdening the
masses by jacking up the POL prices, at least, in the remaining three months of the
current fiscal year.

The official said another challenge for the next government would be the consistent cash-
bleeding of major public sector institutions such as Wapda, Pakistan International
Airlines (PIA) etc as these two institutions were going to cause losses to the national kitty
of over Rs 100 billion in the current financial year.

According to the paper, Pakistan’s economy is facing numerous challenges, including

twin deficits - current account deficit and fiscal deficit - as well as stagnant exports, tax
revenues and almost a halted privatisation process. Inflation is another big challenge for
the upcoming economic managers and improving the supply side coupled with better
management can reduce woes on this front.

The coalition partners are working out a strategy for tackling difficult and complex
issues, keeping in view their own manifestos and striving hard to evolve a consensus
among the ruling coalition partners.

Official sources in the countrys federal Finance Ministry said that the economy could not
be put back on the track without bringing our house in order. According to them, the
pattern of the 90s could not be followed to run this huge economy on which international
investors had invested their money by subscribing to bonds issued by Islamabad. ( ANI)

More on major issues pakistan economy

Role of swap dealer in te economy of pakistan.

•
Credit Policy & Research Division
October, 2009October, 2009UBL Research | 2
USD1.2billion disbursed in August’09
•
USD755million may be utilized for budget financing
Original SBA augmented to USD11.4billion
•
USD1.4billion may be utilized for budget financing
Structural performance criteria delayed to June FY10
•
Harmonization of income tax and GST laws
•
Amendments to Banking Companies Ordinance
•
Elimination of electricity tariff differentials
•
Transition to the Treasury Single Account
Circular Debt to be resolved by end-August
•
PKR216billion in power company bank borrowings
•
PKR61billion in FATA receivablesPolicy interest rate should remain on hold until core
inflation shows further significant decline. Tight monetary stance would also help
contain price pressures from the more expansionary fiscal policy
Public sector domestic borrowing requirements will remain high
•Higher projected credit to public sector enterprises for resolution of the “circular” debt•
Increase in credit for commodity operations
Concern over prominence of subsidies in budget

Role of IMF IN Pakistan:

1-Pakistan and the IMF
2-The role of IMF conditionalities in Pakistan's
economic well being
3-Macroeconomic Stability of Pakistan: The Role of the IMF
and World
4-Pakistan accepts 11 IMF conditions
 5-Economy Of Pakistan and the role of IMF in it
6- role imf pakistan economy

7- imf report pakistan

8- imf conditions pakistan

9- international monetary fund pakistan

10- imf loan pakistan

11- imf office pakistan

12- role international monetary fund

13-9/11, Pakistan's Economy, and the IMF

Pakistan-watchers should not be misled by the country’s rosy economic growth figures. Pakistan faces fundamental
problems in the financial sector that are not presently being addressed, warned Mushtaq Khan, the Wilson Center’s
2005-06 Pakistan Scholar, at a May 23 event organized by the Asia Program.

Prior to late 1999, Pakistan was in the throes of an unsustainable cycle of borrowing and spending, which policy makers
were unable to halt. Following the October 1999 coup that brought him to power, General (now President) Pervez
Musharraf faced a bankrupt country as the IMF program in Pakistan was suspended and foreign exchange reserves fell to
dangerously low levels. There was a palpable urgency to revive the IMF reform program needed for debt relief, which was
essential after the freeze of foreign currency accounts in May 1998, following Pakistan’s nuclear tests.

In the aftermath of 9/11, Pakistan’s financial situation improved dramatically: remittances flowing into Pakistan soared, the
value of the Pakistani rupee appreciated, and a fiscal consolidation occurred as the ratio of Pakistan’s deficit to its GDP
decreased. As external financing surged, the government no longer needed to borrow from banks, which led banks that
were “flush with liquidity” to lend to the private sector. Although Pakistan started experiencing impressive economic
growth, Khan contended that this growth was (and is) based on “cheap credit, not economic fundamentals.” The Pakistani
economy is currently imbalanced because it is fueled by credit-driven growth, which in turn is stoking an already large
external deficit. The appropriate policy response in the banking sector is to tighten interest rates; however, both policy
makers and the economic elite strongly resist this step.

While Pakistan is not as vulnerable to abrupt capital flight as Southeast Asia or Latin America, the financial trends of the
Central Bank are disturbing because “any external shock has the ability to reduce or undermine the repayment capacity of
the private sector.” Fiscal reforms are lagging, while domestic debt servicing will soon create new fiscal pressures.
Despite high growth rates, fundamental problems such as excessive private sector credit and inadequate social
development are being masked by a political compulsion in Islamabad and Washington to display high growth levels.
Although Pakistan’s Achilles’ heel -- foreign exchange -- was resolved with 9/11, a false sense of security has stagnated
the delivery of critical fiscal reforms. In essence, the financial flows that resulted from 9/11 have done Pakistan a
disservice as they have melted the discipline in economic management that had been achieved in the two years prior to
9/11.

Commentator Andy Baukol agreed with Khan’s analysis that higher levels of external financing in Pakistan, post-9/11,
had allowed the financial sector to “avoid some of the difficult policy issues.” Baukol noted that the IMF had attempted to
streamline its conditionality to address the rapid credit growth. It remains to be seen how much Pakistan progresses in
privatizing the state banks, as international confidence ultimately lies in the ability of private, rather than state, banks to
efficiently manage their loan portfolios.

Shahid Javed Burki warned about the dangers of a consumption-driven rather than an investment-driven growth. Is
Pakistan heading for another economic shock, he asked, given that the management of the market in Pakistan is being
done not with economic fundamentals, bur rather by speculation? This speculation is not sustainable, Burki emphasized;
only a “large dose of structural reform” can save the situation.

The interesting point, Manuela Ferro added, is how these imbalances developed in Pakistan. What is the political
economy that leads to these cycles of boom-and-bust? Why are there no self-correcting mechanisms in the national
financial institutions? Ferro contended that the real Achilles’ heel in Pakistan is not the foreign exchange shortages Khan
emphasized, but Pakistan’s very slow social development.

Bhumika Muchhala, Program Associate, Asia Program, Tel: 202 691 4020
Robert M. Hathaway, Director, Asia Program

Pakistan’s new investment

incentives
By Muhammad Aftab

Given the challenging circumstances in which the economy had

to operate during FY-2010, it is not surprising that the private
investment response has remained subdued

Several new incentives will be enjoyed by foreign, non-resident

and domestic investors during fiscal 2011, which starts July 1,
as the economy is beginning to look up.

The incentives will spur the overall economic and financial

situation, as the domestic investment has begun to look up,
after a rather poor FY-2009, and not-so good FY-2010 that ends
Wednesday. Everyone feels that the business should do more.
And some indicators are that they already are doing so. Despite
the global financial crisis, the sub-prime horror, and their spill-
over effect that slashed all sorts of demand for consumer
products, and exports, Pakistan stood its ground quite a bit. The
exports stagnation in Pakistan’s case was the effect of these
and domestic causes.

The good news, so for is that the Pakistani stocks offered a 37

percent return in FY-2010 that ends June 30. It translates into
31 percent in dollar terms.

This performance should encourage launch of new businesses,

industries and companies. FY-2010 saw eight new initial public
offerings (IPOs), with a total Rs 4.3 billion (b) worth. However, it
was still better compared to just four IPOs, with Rs 1.4 billion (b)
worth, launched in the low FY-2009.

What were the comparative yields and returns in other sectors?

Stocks outperformed other investments and businesses,
including forex, commodities, debt markets, real estate. But
business, industries and investment, both domestic and foreign-
funded, including FDI inflows, and domestic and foreign portfolio
investment are now getting positive projections during months
ahead.

The National Budget for FY-2011 is also keyed to attract

foreign, non-resident and domestic investors in order to shore
up industrial and business activity in the country.

Finance Minister Dr Abdul Hafeez Shaikh, has built the new

incentives into five groups, to benefit the business and industry.
These include tax-free payments to non-residents on profits on
debt, which will be allowed effective July 1. The rate of final
withholding tax on non-specified payments to non-residents has
been reduced from the existing 30 percent to 20 percent. A 10
percent tax credit will be allowed for balancing, modernisation
and replacement to all companies. A 5.0 percent tax credit will
be allowed to any company in the tax year of its enlistment on
bourses. A 10 percent withholding tax, as final charge on profit
on debt (in debt instruments), and also for the investment in
government securities will be allowed to ensure a hassle-free
compliance by non-residents.

These securities will include the Treasury Bills, and Pakistan

Investment Bonds, issued by the State Bank of Pakistan (SBP),
the central bank.

What was the state of investment in the last two years? The
government reports, at current prices, the Gross Fixed Capital
Formation (GFCF) declined 0.6 percent in FY-2010, after
recording a 5.5 percent increase in FY-2009.

A decline in the fixed income by the private sector has

accounted for the overall change, with an estimated contraction
of 3.5 percent in FY-2010. “Bulk of the decline occurred in
electricity and gas, large scale manufacturing, transport and
communication, and finance and insurance,” reports the Ministry
of Finance (MoF).

Given the challenging circumstances in which the economy had

to operate during FY-2010, it is not surprising that the private
investment response has remained subdued, the MoF says. A
substantial decline in Foreign Direct Investment (FDI) inflows for
the year also contributed to the decline in fixed investment in
2010. FDI accounts for a high share of gross fixed investment in
Pakistan, and contributes 20 percent to total investment.

The MoF agrees that the decline in FDI inflows was “in line with
the steep drop in global inflows of FDI”, which fell 32 percent in
2009 according to the estimates of the International Institute of
Finance (IIF). For the period July-April FY-2010, FDI totalled $
1.8 billion (b), as compared to $ 3.2 billion (b) in the like period
of FY-2009 — a decline of 45 percent.

The MoF analysis indicates a large part of decline in FDI was

recorded in telecommunications, which was down by $ 607
million. In financial services, it was down by $ 548 million.

The decline in the two sectors, which related to a few “lumpy”

transactions last year, amounted to 81 percent of the overall
reduction in FDI in FY-2010.

But investment levels in some sectors remained healthy,

including those in oil and gas exploration with an FDI of $ 605
million, communications $ 222 million, transport $ 104 million,
construction $ 86 million, and paper and pulp $ 81 million.
Despite a steep decline, inflow of FDI into financial services was
$ 133 million in FY-2010.

The MoF also acknowledges “a worrying development was the

large net disinvestment in the IT sector” amounting to $ 95
million in FY-2010. “Overall, out of the major industry
categories, 12 of them recorded higher FDI for the period, while
24 industries witnessed a net reduction in FDI inflow,” it says.

But the new incentives are intended to boost investment.

“Pakistan’s economy has displayed a significant resilience in the
presence of a challenging environment throughout FY-2010.
The government’s efforts to tackle the economic slowdown have
been noteworthy. An economic recovery is underway as shown
by an improvement in macroeconomic indicators. However, this
needs to be further strengthened,” says Finance Minister
Hafeez Shaikh.

The writer is an Islamabad-based journalist and former Director

General of APP

Daily Times - Leading News Resource of Pakistan

06-28-2010, 08:56 PM #25 (permalink)

Neo Re: Pakistan Economy - Daily News &

Administrator Analysis
Lt. General

IMF chief Strauss-

Kahn satisfied
with Pakistan
Join Date: Aug 2009 Tuesday, 29 Jun, 2010
Location: Amsterdam
Posts: 8,075 WASHINGTON: The head of the
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Thanked 308 Times in 249 Posts Monday praised Pakistan's
commitment to an 11.3 billion-dollar
rescue package, despite a delay in
setting up a nationwide tax.

IMF managing director Dominique

Strauss-Kahn said that while Pakistan
could not be considered a “normal
country” in light of its wave of
violence, the government has made a
“good step forward” on economic
reforms.

“There is a lot of concern but no real

problem. I think they are going ahead
rightly,” Strauss-Kahn said in a group
interview. The Washington-based
international lender approved the
latest 1.13 billion dollars of the
package in May and allowed two
waivers on conditions, including
 giving the government the right to
overrun the budget deficit.

As part of the IMF bailout, Pakistan

agreed to impose a nationwide value-
added tax to bolster government
coffers and drum up badly needed
funding to fight poverty.

But Pakistani leaders are squabbling

over how to set up the tax. Some
Pakistanis have voiced fear that the
delay could lead to a cut-off in IMF
support.

Strauss-Kahn acknowledged the IMF

had “questions” about the tax and
energy prices, but added: “I must say
that a lot already has been delivered
by the government.”

Another concern, Strauss-Kahn said,

was to ensure that donor nations,
informally grouped as the “Friends of
Pakistan”, follow through with
pledges.

“The question is... does the so-called

Friend of Pakistan set of countries...
really deliver and provide the
resources, because all the resources
needed are not supposed to come
from the IMF,” he said.

Donors met in April 2009 in Tokyo

and pledged 5.28 billion dollars to
help stabilize Pakistan, which is the
Islamic world's only declared nuclear
weapons state and lies on the
frontline of the US-led war on
extremists in Afghanistan.

The US Congress last year approved

a five-year, 7.5 billion-dollar plan to
build roads, schools and democratic
institutions in Pakistan. -AFP

DAWN.COM | Business | IMF chief

Strauss-Kahn satisfied with Pakistan

06-29-2010, 04:51 PM #26 (permalink)

Neo Re: Pakistan Economy - Daily News & Analysis
Administrator
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Pakistan may get FDI worth $1.7bn
from 120 CDM projects: minister
Tuesday, June 29, 2010

KARACHI: Pakistan is likely to get foreign direct investment worth

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1.715 billion dollars from the 120 clean development mechanism
(CDM) projects that are in the pipeline, said Federal Minister for
Environment Hameedullah Jan Afridi on Monday.
He was speaking at a seminar to introduce the business opportunity of
Carbon Finance through CDM of Kyoto Protocol under the United
Nations Framework Convention on Climate Change (UNFCCC).

These projects will help in green house gasses (GHG) reduction of 28

million tons CO2 equivalent a year, he said.Pakistan has so far
approved 25 CDM projects that will bring in FDI of around 742 million
dollars and help in GHG reduction of 4 million tons CO2 equivalent a
year, Afridi said.

“The CDM Executive Board has registered six projects (out of the 25)
which will generate 195 million dollars worth of foreign direct
investment (FDI),” Afridi said.Foreign companies invest in GHG
emission control in developing nations and swap these ‘carbon credits’
in home countries where this practice is too expensive and proves
uneconomical, Afridi explained.

Carbon Finance through CDM was an attractive business opportunity

and an increasing number of governments and private companies are
now entering the market, he said.Potential for CDM projects exists in
energy efficiency, alternate and renewable energy production, cleaner
technologies in industrial processes, and improvements in agriculture
and forestry practices, Afridi said.

The Ministry of Environment and Korean Trade and Investment

Agency (KORTA) had jointly organised the seminar at a local hotel.The
CDM under the Kyoto Protocol of 1997 has been particularly
introduced for the developing countries for initiating sustainable
development projects in return for Carbon Credits that can be sold to
developed countries.

“The business is expected to grow to billions of dollars,” Afridi said.

Pakistan offers technical and financial opportunities to attract

international investors in the carbon finance, he said.

He appreciated the Korean companies’ interest in CDM project

activities.Korean Consul General Lee In-ki highlighted the aim and
objective of the seminar. He gave background of KORTA and briefly
described the profile of Korean companies interested to invest in CDM
projects in Pakistan.

Pakistan may get FDI worth $1.7bn from 120 CDM projects: minister
The Following User Says Selma Shirazi (06-29-2010)
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06-29-2010, 05:10 PM #27 (permalink)

Neo Re: Pakistan Economy - Daily News & Analysis

Administrator
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Pakistan enters export
market of CNG kits
KARACHI: Pakistan has entered the export
market of CNG kits as famous CNG kits
Join Date: Aug 2009 manufacturer from Italy – Landirenzo has
Location: Amsterdam started regular shipments of four-wheeler’ CNG
Posts: 8,075 kits to Brazil, China, Far Eastern and European
Thanks: 322 countries, said Chief Executive Officer of
Thanked 308 Times in 249 Posts
Landirenzo Pakistan, Alberto Barbiery.

He said about 30 percent of the total production

of CNG kits by Landirenzo is being exported
abroad; as the company is planning to increase
its production and is likely to enhance export
volume from Pakistan.

Alberto said Landirenzo has over 90 percent

market share of CNG kits in Pakistan including
customers like Indus Motors for Toyota and
Daihatsu cars and Pak Suzuki Motor Company
for all range of cars and vans besides catering
to the individual customers through its four
dealers across the country who have further
network of wholesalers.

He informed that Landirenzo started its

operations in Pakistan in 2007 by assembling
CNG kits and now it has reached the deletion
level of 20 percent as the company is
manufacturing 20 percent local components.

He said that the company’s total volume has

reached $20 million (Rs 1660 million approx)
per annum. He, however, said that Landirenzo
is yet to exploit the market of heavy vehicles
such as buses, trucks and vans, which has a
big potential and if the owners of heavy vehicles
convert their vehicles to CNG, the country
would save precious foreign exchange being
spent on import of diesel. He said that the
Pakistan’s mounting menace of environmental
 pollution would also be resolved considerably.

To a query he said that his company believes in

quality and safety and is ready to transfer its
technology to Pakistan by gradually adding
local components until it reaches 100 percent.
He said that the company has set up a testing
laboratory besides assembling and
manufacturing plant in SITE area and each and
every component is checked before
assembling.

Alberto informed that about 12,000 to 15,000

kits are being manufactured in its SITE facility
and the total annual production has gone
beyond 45,000 units.

He warned that the safety and quality of the

CNG kits manufactured in Pakistan or imported
should be checked by the concerned authority
and that could be possible when the authority
would issue license to the certified dealers only.

He expressed concerns over the safety and

quality of CNG and LPG kits being installed in
auto-rickshaws and taxis in Pakistan.

He advised that people considering getting

CNG kits installed into their vehicles should to
go to registered and certified CNG installers for
the sake of their safety. He informed that his
company would soon launch an awareness
campaign about safety and precautions
regarding CNG kits.

Daily Times - Leading News Resource of

Pakistan

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06-29-2010, 05:25 PM #28 (permalink)

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Economic indicators
improving ECC informed
ISLAMABAD ( June 29, 2010): The Economic

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Coordination Committee of the Cabinet (ECC) met
here on Tuesday under the chairmanship of the
Federal Minister for Finance, Dr. Abdul Hafeez
Shaikh.
The ECC was briefed about the key economic
indicators, said a statement issued here by Ministry
of Finance.
It was apprised that various economic indicators had
shown signs of improvement.
The Quantum Index of Large-scale Manufacturing
(QIM) had registered a positive growth of 4.5 per
cent during July-April 2009- 10, against negative
growth rate of 8.2 per cent during comparable
period last year, it said.
The meeting was informed that trade deficit
improved by 9 per cent to $13.9 billion in July-May
2009-10 from $15.3 billion in the same period last
year. The workers' remittances amounted to $8,064
million in July-May 2009-10 as against $7,076
million, showing an increase of 14 per cent over the
same period last year.
The ECC desired that in view of the forthcoming
holy month of Ramadan, the availability of essential
items during Ramadan and their prices would be
examined by a Ministerial Committee under the
convenership of Federal Minister for Industries and
submit its recommendations within the next four
days.
The ECC also considered and approved the
decision of the Ministerial Committee constituted by
the prime minister to settle the issue of
compensation and resettlement of the affectees of
the Diamer-Basha Dam. It was also decided that the
scheme would be revised and sent to the ECNEC
for final consideration.
Regarding the World Bank loan for reconstruction of
berth 15 to 17 A and SRB's 1 & 2 at Karachi Port,
the ECC decided that the proposed World Bank loan
be on-lent to KPT at a rate of 8.2 per cent. The loan
shall be repaid by the KPT in US dollars over a
period of 30 years.
The ECC was informed that during July-May 2009-
10, the overage CPI-based inflation stood at 11.6
per cent as against 21.6 per cent in the same period
last year.
Whole Sale Index inflation stood at 12.2 per cent as
against 19.7 per cent last year.
The FBR tax collection stood at Rs. 1,137 billion on
 net basis during July-May 2009-10 as compared to
Rs. 996 billion in the same period last year, thereby
posting an increase of 14 per cent.

Economic indicators improving ECC informed :

Business Recorder | LATEST NEWS

The Following User Says Selma Shirazi (06-29-2010)

Thank You to Neo For This
Useful Post:

06-30-2010, 10:25 AM #29 (permalink)

Neo Re: Pakistan Economy - Daily News & Analysis

Administrator
Lt. General
Pakistan expects $970
million foreign inflows to
meet IMF target
Wednesday, June 30, 2010
Join Date: Aug 2009
Location: Amsterdam KARACHI: Pakistan expects to secure $970 million in
Posts: 8,075 the next two days from overseas Pakistanis to help it
Thanks: 322 cut the central bank borrowings and meet a condition
Thanked 308 Times in 249 Posts
of the International Monetary Fund’s (IMF) $10.66
billion loans programme, officials said on Tuesday.

Under the programme, the government has to pay

back any incremental budgetary borrowing from the
central bank by June 30. As of June 18, those
borrowings stood at Rs130 billion ($1.5 billion).

Officials said a loan from the Asian Development Bank

(ADB) will bring in $470 million.

The government also hopes to be paid $500 million by

Etisalat, the Gulf Arab region’s second-largest telecom
firm, as part of a 2006 deal to sell a stake in Pakistan
Telecommunication Company Limited (PTCL).

The government sold the stakes for $2.6 billion and

about $800 million is outstanding, officials said.

Finance Ministry Spokesman Asif Bajwa said the

government expected to receive $970 million “in the
next few days”.

“We are trying to get these inflows in this quarter,” he

said.
 Officials said that the government had recently asked
Etisalat to release at least $500 million of the
outstanding amount from the stakes sale to help meet
the IMF condition.

Pakistan turned to the International Monetary Fund for

a $10.66 billion loan in November 2008 to avoid
default on its debt.

As part of the deal, the IMF said the government must

reduce to zero its incremental budgetary borrowings
from the central bank at the end of each quarter.

At the end of the March quarter, these borrowings with

the State Bank stood at Rs30 billion, although it had
met the condition in previous quarters.

“The government needs to retire this amount or

otherwise it will need to seek a waiver from the IMF for
being in breach of a key performance criterion,” said
Asif Qureshi, director at Invisor Securities, a local
brokerage house.

Along with profit transfers from the central bank, as

well as some other debt retirements by the
government, these inflows will help meet the IMF
target, said Qureshi.

Pakistan has drawn down $7.27 billion of the IMF loan

programme that runs to the end of 2010.

The IMF is due to meet in August to review Pakistan’s

progress in meeting loan conditions before approving
the next tranche, likely to be $1.1 billion to $1.2 billion.

Pakistan expects $970 million

06-30-2010, 10:32 AM #30 (permalink)

Neo Re: Pakistan Economy - Daily News & Analysis

Administrator
Lt. General
Punjab working on energy
generation from waste: Shahbaz
Wednesday, June 30, 2010

LAHORE: Chief Minister Punjab Mian Shahbaz Sharif has said the
Join Date: Aug 2009 Punjab government is working on a comprehensive project of solid
Location: Amsterdam waste management in cities and generation of energy from waste.
Posts: 8,075
Thanks: 322
He said the provision of potable water to people was the top priority of
Thanked 308 Times in 249 Posts the government for which record funds had been allocated. He said
that an agreement was being signed with the Istanbul Municipality on
solid waste management in Lahore, which would bring about a visible
change in the sanitary system in the provincial metropolis. He said that
apart from middle and long-term policies in the sector, optimum
utilisation of available resources would have to be ensured for
improving the existing situation.

He was giving a briefing to Pakistan Muslim League-N Quaid Mian

Nawaz Sharif about measures taken by the Punjab government for
providing civic amenities to people of the province at the Chief
Minister’s Secretariat on Tuesday.

The chief minister said the Punjab government was utilising all
possible resources for the rapid development of the province as well as
providing basic amenities to the citizens. He said that special attention
was being paid to Solid Waste Management and provision of potable
water to the people.

He said there was a need to mobilise the existing workforce

immediately which was drawing salaries of billions of rupees without
showing satisfactory performance. He directed that staff of the Solid
Waste Management Department should immediately be withdrawn
from residences of officers and be utilised for providing a better
environment to people. He said the government was determined to
making solid waste management an active and vibrant institution by
eradicating corruption, negligence and politics.

He said a Solid Waste Management Company had been constituted

which would have an autonomous board of directors and experts. He
said polluted water had become a serious issue due to which people
were suffering from various diseases.

He said the Punjab government had allocated Rs. 9.5 billion for the
sector which would be utilised for providing potable water and drainage
facilities in urban and rural areas. He said that 54 percent funds would
be utilised in rural areas. He said that a sum of Rs. two billions had
been allocated in the next fiscal year for the construction of new water
supply schemes besides improvement existing ones in areas of
brackish water.

The role of IMF conditionalities in Pakistan's economic well being

Economic Review, March, 1997

• 1
• 2
• Next

He said, that the present government has extremely competent persons, but problems are
much larger. There should be a task force headed by the Finance Minister consisting of
very competent persons in government. Task force should be small who should work to
put in place the mechanisms that should redeem the situation in maximum 4 months.
He said that we should stand still on excessive borrowing by government. If the
government do not take corrective measures there is a risk of default. Task force should
slow down the pace of excessive borrowing. In context of stand still, 4 things needs to be
done. Pass an Economic recovery act. The principle feature of this economic recovery act
should be to balance the budget after a transition period. This act needs high level of
support, otherwise it can not be done.

Mr. Aftab Ahmed Khan reiterated that right from the 50s we have a "Khairati economy"
he said that the conditionalities are meant to structure the political system of a country in
a way perceived by the foreign masters. He said that after the breakdown of Bretton
Woods System the betterment of the economy of the development countries that was
meant to be original goal of IMF has lost its significance.

Now by extending the money to the third world IMF spell out in clear term the economic-
cum-political structure that they require but he said that there is no use blaming them.
The concept of economic sovereignty has little meaning in the present world order
context. We should be more self dependent, more over some of the IMF's conditionalities
are very good for the economy if pursued in good spirit and with a logical perspective.
He was of the view that we have kept the productivity of the country very low in the
scheme of priority. Even the private sector has not done much in this regard. The remedy
to freeing ourselves from the foreign shackles lies ultimately with us.

Dr. Asad Saeed, Research analyst SPDC, in his address stated that IMF agenda concern
structural adjustment. He was of the view that the economic policy should basically focus
on two aspects: (a) growth and (b) Equitable Distribution of benefits in the economy. He
said Pakistan needs strategic planning which means a thorough analysis of industrial
sector to generate the benefit of economy of scale, keeping in view the economic
spillovers inherent in this regard. We have huge differentials in borrowing and lending
resulting in low savings. IMF has failed to improve this situation. He further stated that
tariff reduction unless coupled with strategic planning would lead to cost push inflation.
Commenting on some of the steps needed to revive the economy, Mr. Asad said that
military budget should be reduced, agricultured tax imposed and statistical data should be
collected to make the research meaningful.

Dr. Abdul Wahab, Director IBA said that affluence of the masses is contrary to the
depressing state of the economy that afflicts the country. The living standards our leaders
match those of the richest state of the world. This is in harsh contrast to the economic
quagmire that is facing us. He was of the view that devaluation is a plot against Pakistan
and dangers of it should be fully kept in mind before implementing it.

Mr. Feroz Ansari, Treasury Head Emirates Bank International, said that money pouring
in is not the main problem but how we utilize the money is the key issue. The short
sighted policies of our leaders give a blow to our economy. IMF polices are basically anti
inflationary the basic criticism of IMF conditionalities is their blind imposition of dictates
governed by capitalistic system without any tangible benefits coming by. With about 1
billion in foreign reserves how we are going to pay our liabilities is a big question. Mr.
Ansari was of the view that even if we get a moderate response to the PM debt retirement
scheme we could be in a position to negotiate with IMF. The negative political overhang
is the main issue in Pakistan