ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani has expressed satisfaction over the overall economic situation in the country as all economic indicators have started showing positive trends due to govt’s timely intervention and introduction of corrective measures. The Prime Minister expressed these views in a meeting with Shaukat Tarin, PM’s Advisor on Finance who called on him here at the PM’s House this afternoon.

Briefing the Prime Minister on the economic situation of the country, Tarin said that Pakistan would receive IMF second tranche of $840 million as per schedule as the country is well ahead in achieving the targets set for the said quarter. He said that due to stringent economic measures the situation of current account has also improved significantly and a deficit of $2.2 Billion recorded previously is now reflecting surplus of $117 million at present.

Talking about the market indicators, Tarin briefed the Prime Minister that market interest rate has decreased from 15.85% to 12.44%. Similarly the Stock exchange of the country is also performing positively and has registered an increase in the trading volume by 29% thus placing itself as one of the best performing stock exchanges of the world, the Advisor added.

Apprising the Prime Minister of the situation of inflation in the country, the Advisor informed the Prime Minister that the inflation has brought down to a single digit from double digit figure of 25% in one year.
The Advisor also briefed the Prime Minster that agreement was reached with the banks on the status of circular debt.

In order to achieve broader tax net, the Prime Minister directed the Advisor to personally supervise the revamping of revenue collection system for achieving the desired objectives. The Advisor on Finance will brief the Prime Minister on the country’s economic situation on weekly basis.-SANA

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has notified the Non-Banking Finance Companies (NBFC) and Notified Entities Regulations, 2008. Earlier, the draft of these regulations was notified in August, 2008 for soliciting public opinion.

The time for compliance with various regulatory requirements has been extended enabling the industry to reposition adequately to meet the demands of changing circumstances. The shareholders of NBFCs and mutual funds have been empowered to effectively participate in the continuation and growth of respective industries. These regulations aim at industry facilitation, risk management and safeguarding the interest of the shareholders.

The NBFC regulations issued in 2007 stands repealed and replaced by these regulations, the requirement for listing at stock exchange for entities engaged in deposit taking has been extended up to June 30th, 2009, the time schedule to comply with the minimum equity requirement has been extended by one year , the time period for aligning portfolios by Asset Management Companies has been extended until June 30th, 2009, annual fees on mutual funds have been reduced depending on the category of a fund, procedure for cancellation of registration and revocation of the Open End Scheme or Closed End Scheme by the AMC has been improved, to address the issue of deep discount on closed-end mutual funds, certificate holders have been empowered to decide conversion into open end or revocation of the funds and the application of provisioning criteria on non-performing assets has been extended for a period of two years.

Per-party and per-sector exposure limits have been specified for different types of schemes and CIS has been barred from investing in securities of its Asset Management Company. Board of Directors of NBFCs will be required to approve opening of account with banks and brokers.-SANA

KARACHI: Advisor to Prime Minister on Finance Shaukat Tareen said Wednesday that foreign exchange reserves will be built- up with the help of sufficient inflows being arranged in next three to four weeks. He was talking to media at Jinnah Terminal of Karachi Airport. “I am going to Washington DC tonight (intervening Wednesday-Thursday) to arrange sufficient inflows which are already lined up. I will also visit friendly countries for this purpose”, Tareen added.

He said sufficient inflows will put pressure on speculators who were holding dollars. They will learn a lesson, he noted. The Advisor maintained that some banks were cartelising to drive up rates in interbank. State Bank of Pakistan was monitoring these banks and rates will come down in the market in next one week.

He categorically said the government was strictly monitoring the situation in banking sector and will not let any bank to fail. State Bank will help such banks, he added. To a question about falling deposits of banks, the Advisor said that banks were facing the consequences of paying low returns to the depositors just to protect their profitability.

Responding to a question regarding seizing of lockers, he said it was wrong and it will not happen. Not as long as he sees it, he assured. Talking of the gap between imports and export, Tareen said that deficit was falling due to drop in oil prices, effective demand management and restriction on imports. The gap will be further reduced, he hoped.

He said the economy was strong, but inflation was very high. The inflation rate at 20 to 25 percent was not acceptable and needed to be brought down because it is a tax on the poor and rich alike.

This is another reason why rupee was losing its value against foreign currencies. He said the rupee was over- valued and the previous government had artificially kept the rupee up against dollar. It should have been gradually kept afloat. Now it has come down to its real value, he added.

However, he said that government was trying to ensure that rupee should not go down below this level. The sufficient inflow will stabilise the rupee. Replying to a question about stock market crisis, Tareen said that government will buy its shares through NIT to stabilse the market. He noted that prices of government shares were very lucrative at this level.

He, however, said the government will not interfere in the market. He said more capital market reforms will be introduced beside the on-going process and de-mutualisation. The Advisor noted that the government borrowings will be cut because these are highly inflationary. Whatever has been done is enough.

He also denied the rumors about government’s intention to freeze all bank accounts, and while accusing certain banks of being responsible for the recent devaluation of Pakistani rupee, assuring of normalcy in shortest possible time.

He said the privatization process will continue as government believes that “it has no business in running business.” He said only 25 to 26 percent of the strategic stake will be sold in the privatised entity and the rest will be off- loaded when the entity turns-around and prices are high. -APP

KARACHI: The selling pressure continued at the local capital market on the third consecutive day on Thursday as the benchmark KSE-100 Index sliding by 390 points, plunged below 12000 points to peg at 11870. The investors opted to remain sidelined as unconfirmed reports of government contemplating increase in the Capital Value Tax (CVT) hit the market besides outflow of investment. At one point the major Index even witnessed the day’s lowest at 11,704 points as energy and banking scraps received heavy battering. Some recovery later pushed the Index to close the day at 11,870 points. Trade volume was registered at 160 million shares, showing an improvement of 40 million shares compared to yesterday. KSE-30 Index plummeted by 521 points to 13, 673

ISLAMABAD: A KSE delegation called on Syed Naveed Qamar, Federal Minister for Finance, Economic Affairs, Revenue, and Privatisation & Investment here today. Issues relating to Stock Market and Economy of Pakistan were discussed at length. KSE delegation suggested to the Finance Minister GoP’s proposed steps for investor friendly confidence building measures aiming to arrest the declining trend in the capital markets. Read the full story

KARACHI: The Bursa Malaysia, Malaysian Stock Exchange, has agreed to forge cooperation with Karachi Stock Exchange KSE in areas of Islamic Corporate Market, Information Sharing and dual listing. This was stated by Chief Executive Officer(CEO) of Bursa Malaysia Dato’ Yusli Mohamed Yusoff, during his meeting with His Excellency, the High Commissioner for Pakistan, Lt. General (Retd), Tahir Mahmud Qazi and Commercial Counsellor Mr. Majid Qureshi in Kaula Lumpur, today. Read the full story

KARACHI: Karachi Stock Exchange Tuesday regained 327 points as KSE-100 index crossed 12800 level. Trade remained volatile until noon, the bulls finally snapped a rally — led by heavy buying in undervalued stocks.

KARACHI: Shares in Karachi stocks market fell nearly 5 percent on Friday after the State Bank of Pakistan increased its key discount rate to 12.0 percent from 10.5 percent the previous day to counter inflation and widening deficits. The Karachi Stock Exchange (KSE) benchmark 100-share index was 4.75 percent, or 647.11 points, lower at 12,979.89 by noon (0700 GMT), when it closed for Friday prayers. The index, at its lowest level since Sept. 18, 2007, will reopen at 2:30 p.m. (0930 GMT) and close at 4:00 p.m. (1100 GMT). The KSE-index has shed 7.8 percent since the beginning of the year and is 17.5 percent lower than its life-high, set on April 21.-SANA

SBP increases discount and bank interest
The benchmark KSE 100-Index shed 347 points to close at 13627 speculations about stringent economic measures by the central bank triggered selling in banking and insurance stocks. Share prices at the Karachi stock exchange fell more than 2 percent, as the market remained jittery on expectations of a discount rate hike — amid heavy selling after downgrade in country-ratings on Wednesday. Read the full story

KARACHI: Oil prices hit a record hitting up 130.05 dollars a barrel on Wednesday. The unprecedented soaring oil prices are due to the prevailing anxiety about stretched supplies in the face of strong demand for energy, and the downward trend of dollar in the international currency market, said the traders.

Karachi Stock Exchange gained 71 points following mass buying of oil stocks against the soaring international oil prices here Wednesday. Institutional interest was seen reviving in the market Wednesday. Investor interest was renewed by surging international oil prices.-SANA