Economic Review articles from August 2002

Economic Review archives from August 2002

Environmental concerns have mixed effects on Boron demand. (Press Release).
August 1, 2002... New Report Analyses Key Trends in Boron Industry Worldwide A new report from market analyst Roskill says that borate consumption in the detergents industry (which is the second largest market for borates, with a 17% share) continues to be...

Annual report of IFC 2002. (Comment).
August 1, 2002... Difficult times require unconventional thinking and some degree of optimism. At IFC we drew on both to weather one of the toughest years in the Corporation's history and emerge in a strong position. The 2002 fiscal year began with economic...

An overview of the Manufacturing sector.
August 1, 2002... The growth target for Large-Scale Manufacturing (LSM) for the year200l-02 was set lower than previous year for two reasons. Firstly, as a result of 8.6 per cent growth in 2000-01, the base for large-scale manufacturing was already high....

Auto and Allied companies on KSE.
August 1, 2002... There were 25 companies on the list of Karachi Stock Exchange in Auto and Allied section in 2001, of which we have analyzed 20 companies. The Annual reports of five companies namely Al-Ghazi Tractors, Bela Automotive, Bela Engineering,...

Weaving industry.
August 1, 2002... Pakistan is slowly coming out of low value addition in the basic textiles as its weavers are shifting from the exports of grey fabric to much higher valued finished cloth. A study of the current trends in the weaving industry revealed that all...

Knitwear Industry.
August 1, 2002... Knitwear industry has emerged better prepared for a quota free world in 2005 in the wake of 9/11 although it may not be able to fully exhaust its quota for the US in 2002 even in categories that has remained oversold in past. Knitwear...

Automobile industry and WTO.
August 1, 2002... Deregulation and liberalization is a key word on today's world economic scenario. Unfortunately Pakistani entrepreneur/industrialist is very much frightened with the world liberalization and always like to enjoy monopolistic favours and does...

Vending industry.
August 1, 2002... The backbone of province's industrial economy is this small and medium sized vending network. It also provides bulk of the employment. The basic idea to establish a vending industry in a planned manner was conceived in early 1960s by the Punjab...

Pharmaceutical industry.
August 1, 2002... It is being claimed that the pharmaceutical industry is passing through the worst crisis of its history because the profits of multinationals have fallen down substantially, and that of the local manufacturers completely depleted. The...

Home appliances industry and smuggling.
August 1, 2002... Smuggling remains the main threat to the development of sustainable home appliances industry in the country. Its present status is a tribute to the dedication of a few entrepreneurs who braved all odds to attain present status. The brand...

Pharma Industrial Policy.
August 1, 2002... The Economic Co-ordination Committee (ECC) has approved the draft of 'Industrial Policy for Pharmaceutical Sector', which allows establishing Drug Registration and Pricing Authority' for transparency and good governance. The Ministry of...

Industrial growth and value addition.
August 1, 2002... In order to checkmate such spurious manufacturers, the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAA-PAM) and Pakistan Automotive Manufacturers Association (PAMA0 - in addition to many other concerned associations,...

Fertilizer Industry.
August 1, 2002... The enhanced productivity in agriculture sector can be achieved by improved and efficient crop husbandry. Applying fertilizers in required quantity and quality at appropriate times with the using of other inputs can improve yield per healthcare...

Leaders in industry: The following pages include life sketches of leaders in industry who are contributing to the industrial growth of Pakistan.
August 1, 2002... Mr. Kamal Amir Chinoy is Chief Executive of Pakistan Cables Ltd., an ISO 9001:2000 certified company. Being a B.Sc. in Economics (with triple major) from the Wharton School, University of Pennsylvania, USA, he continues his involvement with...

Seminar on fertilizer industry.
August 1, 2002... The role of fertilizer industry in the economic revival of the country was discussed threadbare by the experts of the industry at a seminar on fertilizer industry, organised by Engro Chemical Pakistan recently. The experts of the field threw...

Tobacco and its products.
August 1, 2002... Tobacco is by any measure a highly topical and emotive issue. Leaf Tobacco is also in third world terms a complex agro-economic subject and plays a significant social development role. Of the total world tobacco crop almost half area is to be...

Leather industry.
August 1, 2002... The artificial leather industry is not only feeding the export oriented industry including footballs, valley balls, racket holders, gloves, and joggers etc. but also earning huge foreign exchange for the country. Importantly, this industry is...

Poultry industry.
August 1, 2002... The first steps have been taken through a knowledge expansion scheme. The next stage is to improve the local production of feed and to locate it as near to the primary production systems as possible. Since the primary producers are spread out...

Energy sector in Pakistan.
August 1, 2002... The energy sector plays a key role in the development and growth of the economy, as the availability of adequate supplies of energy is a pre-requisite to generate economic activities. The main objectives of the energy sector are ensuring...

Asian Development Bank and power projects.
August 1, 2002... Dr. Nayyer Alam Zaidham said that these projects would be operated on community in the private sector basis. He emphasized that participation of the community was pre-requisite and conditional. Country Work Plan and Project Identification were...

Petroleum & Gas Exploration and Production.
August 1, 2002... The joint venture is obligate to carry out 200 line Kilometers of seismic survey and drilling of one exploration well during the Phase-I of the initial term of three years with a minimum expenditure obligation of over $5.1 million. OMV will be...

Sui Purification Plant.
August 1, 2002... Ministry of Petroleum has proposed transfer of Sui Purification Plant to Pakistan Petroleum Limited (PPL) at a lump sum payment according to the Note Book Value at the plant assets with additional premium. It also proposed phased increase in...

Gas pipeline: Gazprom gives new option.
August 1, 2002... A Russian firm has shown interest in laying a gas pipeline from Iranian Poros field to India via Pakistan along the coastal belt of these countries. A source in the Petroleum Ministry told that the ministry had received a third option from...

Increase in oil prices rise to inflation.
August 1, 2002... Recent increase in prices of diesel and other petroleum products is bound to further increase in inflation level in the country not just due to rise in transportation cost but through making food items and other farm products costlier for the...

Mari Gas raises price.
August 1, 2002... Mari Gas Company Limited (MGCL) has increased sale price by 5 per cent, to Rs.61.68 per MMBTU, from Rs.58.5 per MMBTU for gas used as feedstock in old facility from July 2002, official sources told. Mari Gas Company supplies gas to Engro...

WorldCom rekindles reform fire. (International Round-Up: Gleanings from the Press).
August 1, 2002... A month ago the desire for post-Enron reform appeared to have nearly burned out in Washington but the blaze of headlines about WorldCom has put the cleanup of Corporate America back on the political agenda. President George Bush injected a...

Toyota to boost production. (International Round-Up: Gleanings from the Press).
August 1, 2002... Toyota Motor Corporation, the world's third largest automaker said on July 2 that strong overseas vehicle sales mean that it may have to boost production abroad. "We have reached our upper limit in overseas production", President Fujio Cho...

US carmakers to stimulate sales. (International Round-Up: Gleanings from the Press).
August 1, 2002... General Motors Corp. and Ford Motor Co., the world's No. 1 and 2 automakers, will introduce new incentive deals to keep sales up and factories busy-Ford on July 1 said it would offer financing rates as low as 2.9% on five-year loans, as part of...

Chinese vendors tap niche for novel cellphones. (International Round-Up: Gleanings from the Press).
August 1, 2002... Some mobile phones in China are popular among men to buy for their mistresses. For every taste, there is a cellphone that serves it in mobile-crazed China, where more than 240 models are available for some 30 vendors, making the world's biggest...

Volkswagon to make small car in China. (International Round-Up: Gleanings from the Press).
August 1, 2002... Volkswagon AG, Europe's biggest automaker, said on July 3 it would launch a small car in China in the coming year to protect its dominant share of a market it expects to double in size within five years. Volkswagon has seen its share of...

Developing nations must pursue rational policies: IMF. (International Round-Up: Gleanings from the Press).
August 1, 2002... Rich countries should give poor nations greater access to their markets but developing countries also have a responsibility to build trade among themselves and pursue rational economic policies, IMF Managing Director Horst Koehler said an July...

Turkey's economic plan on Track: IMF. (International Round-Up: Gleanings from the Press).
August 1, 2002... A senior IMF official said on July 4 Turkey's $16 billion economic programme was broadly on track despite being tested in the past two months by market falls that investors attribute to political instability. Turkey's lira has fallen close to...

World sugar prices seen slumping. (International Round-Up: Gleanings from the Press).
August 1, 2002... World sugar prices are expected to revisit historic lows in 2002-03 as overproduction adds to a supply glut, which insufficient demand will batter export profitability, German analyst F.O. Licht said on July 5. In is third estimate of world...

China's economy to become more dynamic. (International Round-Up: Gleanings from the Press).
August 1, 2002... At 35th annual meeting of Asian Development Bank at Shanghai President Zhang Zemin remarked "Asia is the biggest continent in the world, accounting for one third of the world's land mass, three-fifth of the world's economic aggregates". He said...

Mahathir for single ASEAN currency. (International Round-Up: Gleanings from the Press).
August 1, 2002... Malaysian Prime Minister Mahathir Mohammad said on July 6 that Southeast Asian countries should consider introducing a common currency to help boost their economies and deepen intra-regional trade. Mahathir told a meeting of Thai-Malaysia...

ASEAN breaks with tradition to liberalise markets. (International Round-Up: Gleanings from the Press).
August 1, 2002... Southeast Asian nations decided on July 6 to break with tradition by adopting a new formula to speed up market opening and keep up with growing competition from powerhouses like China. Economic and trade ministers from the 10 member nations...

Globalization has helped truly poor: study. (International Round-Up: Gleanings from the Press).
August 1, 2002... Far from creating poverty as critics claim, rapid globalization of the world economy has sliced the proportion of abject poor across the planet, according to a study released recently in London. It says that freer commerce, epitomesed by...

US wheat prices rise on shrinking world stocks. (International Round-Up: Gleanings from the Press).
August 1, 2002... US wheat prices rose on July 11 after the US Agriculture Department released a new forecast showing dwindling worldwide inventories of wheat and a small US crop this year Wheat futures traded on Chicago Board of Trade initially rose as...

Indian Sugar Mills seek sea freight for exports. (International Round-Up: Gleanings from the Press).
August 1, 2002... India's sugar mills said on July 12 they would seek an end to rises in state-managed sugarcane prices and would call for government-funded sea freight to aid exports and reduce huge surplus of sugar. "We have demanded ocean freight which...

Subsidies cause $9.5 billion annual loss to poor states. (International Round-Up: Gleanings from the Press).
August 1, 2002... Cotton producers in developing countries face annual loss of about billion as a result of subsidies benefiting rich countries, says a report by Washington-based cotton group and released in second week of July. The report suggests total losses...

Euro hits parity vs dollar, Yen at post-Sept. 11 high. (International Round-Up: Gleanings from the Press).
August 1, 2002... The euro broke through the psychologically significant parity mark against the dollar on July 15 while the yen hit a post-September 11 high versus the greenback as investors continue to question the strength of a US economic recovery and pummel...

Greenspan lauds US economy resilience. (International Round-Up: Gleanings from the Press).
August 1, 2002... Federal Reserve Chairman Alan Greenspan on July 16 lauded the US economy' resilience but cautioned it would need time to heal from a hail of corporate scandals and stock market losses signaling that for now interest rates would stay at...

US industrial output up for sixth straight month. (International Round-Up: Gleanings from the Press).
August 1, 2002... US manufacturers ratcheted up their production for the sixth consecutive month in June in a broad based advance led by gains at auto plants, mines and utilities, the Federal Reserve said on July 16. The amount of available capacity used by the...

World grain market seen squeezed in 2002-03: FAO. (International Round-Up: Gleanings from the Press).
August 1, 2002... World grain output is expected to fall in 2002-03 due to bad weather, squeezing the market as demand for cereals rises and stocks narrow, FAO said on July 17. FAO said it had sharply revised down its 2002 world cereal output by 3 million tonnes...

Bush urges congress to act on corporate abuses. (International Round-Up: Gleanings from the Press).
August 1, 2002... Stepping up efforts to stabilise stock markets and shield himself from blame over a wave of accounting scandals, US President Bush urged Congress on July 20 act by August to punish corporate abuses and "bring a new era of integrity to American...

Worldcom heaps misery on suffering banks. (International Round-Up: Gleanings from the Press).
August 1, 2002... Worldcom's bankruptcy filing heaped misery on the ailing European bank sector on July 22, adding to the suffering banks have endured due to accounting blowups and equity market losses. The Worldcom filing capped weeks of rescue talks and...

US trade gap to set new record in 2002. (International Round-Up: Gleanings from the Press).
August 1, 2002... The US is expected to post a record trade deficit in 2002. Analysts in the latest Reuters survey forecast a median $451 billion trade deficit, up from last year's actual figure of $346.27 billion. On July 19, Commerce Department reported that...

Freight increased on Asia-Canada cargo. (International Round-Up: Gleanings from the Press).
August 1, 2002... Major shipping lines have decided to increase freight by $225 for 20 ft. container and $300 for 40 ft. container on all cargo from Asia to Canada with effect from August 15.

US cargo freight raised by 15%. (International Round-Up: Gleanings from the Press).
August 1, 2002... Freight for all cargo to the US will be up by 15% from August 19, according to an announcement of the Transpacific Stabilisation Agreement which is a group of about 12 major container shipping lines, including the American President Lines.

Bush signs tough new corporate fraud bill. (International Round-Up: Gleanings from the Press).
August 1, 2002... Hoping to restore investor faith in US companies after a wave of broadroom scandals, US President Bush on July 30 signed into law a bill that increases penalties for accounting frauds and provides new grounds for prosecuting corporate...

Equity, job woes sour July US consumer confidence. (International Round-Up: Gleanings from the Press).
August 1, 2002... Stock market carriage and job anxiety in July denied American consumers' confidence, a report said on July 30, raising concerns that consumer spending might cool and threaten the economy. The report signalled that even as the economy is...

World oil prices jump on Iraq fears. (International Round-Up: Gleanings from the Press).
August 1, 2002... Oil prices made strong gains on July 30 on expectations of lower crude stock figures and fear of a US military attack against crude producer Iraq. International benchmark Brent crude futures gained 77 cents to $25.40 a barrel while US...

Shareholders lost $2.4 trillion in 2002. (International Round-Up: Gleanings from the Press).
August 1, 2002... A stock rout this year has erased $2.4 trillion in market value, representing almost a quarter of the US GNP, as waves of accounting problems, executive jugglery and profit warnings have pounded Wall Street's confidence. The Wilshire Total...

International Commodity Prices.
August 1, 2002... International Commodity Prices International commodity prices quoted in London are as given below:- July 5, August 2, (%) Commodity 2002 2002 ...

Rupee remains stable. (Currency Market).
August 1, 2002... The first month of new FY 2002-03 witnessed stability in the exchange value of rupee as it marginally rose from Rs.60.05 per US dollar to Rs.59.53 or by 0.9 per cent in inter-bank market (buying). This trend was also witnessed in kerb market...

Price situation (July 2002).
August 1, 2002... Karachi commodity prices in July rose amidst the federal budget announced in June and the levy of taxes e.g. GST on vegetable ghee. The prices of all items barring three namely caustic soda, acetic acid and gold jumped. The prices of all...

KSE in grip of bears. (Stock Market).
August 1, 2002... July witnessed grip of bears on the stock market as KSE index fell by 6.90 points or 0.4 per cent. But the value of market capitalisation edged up Rs. 761 million or by 0.2 percent. The movement over the month was cyclical. In the first week,...

Cement makers get 24-hour clearance facility. (Corporate Briefs).
August 1, 2002... Fulfilling a major demand of cement industry, the government has allowed 24 hours 'clearance facility' to the cement manufacturers from July 1, 2002. The decision would help the companies to ensure smooth supply of the product at the...

Eols invited for 85% JCL shares sale. (Corporate Briefs).
August 1, 2002... The Privatisation Commission has invited expressions of interest for the sale of 85 per cent shares of Javedan Cement Ltd. to privatise the company. The investors should submit the Eols by July 30, a statement said. The company started...

Engro Chemical TFC issue opens July 4. (Corporate Briefs).
August 1, 2002... The public offering of Engro Chemical Pakistan Ltd. term finance certificates issue will be open for two days on July 4 and 5,2002. The issue is the second tranche of ECPL's self-registered TFCs of Rs. 1,500 million intended to primarily...

Pak-Libya Holding buys Platinum Bank. (Corporate Briefs).
August 1, 2002... Pak-Libya Holding Company has bought Platinum Commercial Bank and the agreement was signed on June 29. The State Bank had fixed Rs. 1 billion as paid-up capital, a minimum requirement for a bank to exist in the country. Sources said that the...

NIT announces final dividend. (Corporate Briefs).
August 1, 2002... National Investment Trust on July 4 has announced dividend of Rs. 1.20 per unit, which will equate the payout of Rs. 1.919 billion. The total yield on the NIT unit for 2001-02 would come to 37.9 per cent including a dividend yield of 13.6 per...

Fertilizer prices raised by Rs. 10 per bag. (Corporate Briefs).
August 1, 2002... Fertilizer prices have once again been increased by Rs. 10 per bag of 50 kg, a move to pass on the impact of general sales tax to the farmers. Earlier, in February, urea manufacturers had increased the prices by Rs. 20 per bag to mitigate the...

Privatisation Commission puts up Thatta Cement for sale. (Corporate Briefs).
August 1, 2002... The privatisation Commission has invited expressions of interest from potential investors for the sale of 90% shares in Thatta Cement Company on 'as is where is' basis. The last date for submitting Eols is August 6. The plant is based on dry...

Engro Chemicals TFCs oversubscribed. (Corporate Briefs).
August 1, 2002... Engro Chemical Pakistan Ltd. on July 11 announced that its public offer of Term Finance Certificates of Rs. 200 million has been four and a half times oversubscribed. This offering was the second tranche of the total amount of Rs. 1,500 million...

Vital Statistics at a Glance.
August 1, 2002... Vital Statistics at a Glance July June Companies Listed on KSE (Nos.) 725 725 Paid-up Capital (Rs. billion) 260,586,161...

Top Ten Companies According to the Turnover in July 2002.
August 1, 2002... Top Ten Companies According to the Turnover in July 2002 Total Highest Lowest Name of Companies Turnover (Rs.) (Rs.) Hub Power Comapany 10,680,000 24.40 24.10 PSO ...

Dividend Announcement.
August 1, 2002... Dividend Announcement Bonus/ Dividend Right Book Companies (%) (%) Closing Pak Oil Fields 80(i) -- 05.02.02 Pakistan...

Over 300,000 petrol vehicles to be converted to CNG by 2003. (Corporate Briefs).
August 1, 2002... The federal government has a plan to convert over 300,000 petrol-fed vehicles to CNG by the end of next year. The progress in the promotion of CNG has been registered as more than 265,000 vehicles have been converted to this cheaper and...

Fertilizer policy has made new investment impossible. (Corporate Briefs).
August 1, 2002... The new fertilizer policy has made any new investment well nigh impossible because of lack of fiscal incentives. This was stated by the Chairman of Fauji Fertilizer Company Ltd. Gen. (R) Amjad Shoaib on July 16. According to him, the...

PSO, ARL Ink MoU for 470 km oil pipeline. (Corporate Briefs).
August 1, 2002... The Managing Director of PSO, Tariq Kirmani and Chief Executive Officer of Attock Refinery Ltd., Raziuddin inked a memorandum of understanding for laying the 470-km pipeline at a cost of Rs. 10 billion from Machike to Taru Jabba (near...

Withdrawal of reduced import duty on built-up cars, bikes demanded. (Corporate Briefs).
August 1, 2002... The existing weak credit system, deteriorating law and order situation and the recently announced reduction in the custom duty on the import of built-up cars and motor cycles are adversely affecting the performance of the automobile and...

Withholding tax on brokerage act to 5%. (Corporate Briefs).
August 1, 2002... The Central Board of Revenue has slashed withholding tax on brokerage and commission from 10 to 5% from July 1, 2002.

OGDC 51% shares put on sale. (Corporate Briefs).
August 1, 2002... The Privatisation Commission on July 20 offered 51% shares of Oil & Gas Development Corporation for sell-off for strategic investors with management control. Expressions of Interest have beer invited from reputed investors, participating solely...

Mari Gas allowed 33% increase in prices. (Corporate Briefs).
August 1, 2002... Oil & Gas Regulatory Authority has allowed Mari Gas Company to increase gas prices by 33% per MMBTU for four commercial and industrial consumers from July 1. The four consumers affected from this increase are WAPDA Gas Turbine Power Station,...

10 EOIs received for sale of 51% stake in PSO. (Corporate Briefs).
August 1, 2002... Privatisation Commission has received 10 Expressions of Interest for the sale of a much as 51% stakes in PSO. PSO during July 2001 to March 2002 earned an after tax profit of Rs.1,711 million, up by 4.8% over the corresponding period last...

UBL sell-off to have positive impact on stock market. (Corporate Briefs).
August 1, 2002... The Chairman, Securities and Exchange Commission of Pakistan (SECP), Khalid A. Mirza has said the privatisation of the UBL would leave positive impact on stock business. He said the tension on I Indo-Pak border had adversely affected the market...

FFC saves over $3 billion through import substitution. (Corporate Briefs).
August 1, 2002... Fauji Fertilizer Company (FFC) has saved over $3 billion through import substitution and contributed over Rs.35 billion to national exchequer in the shape of taxes, levies, customs duties, excise duty, surcharge on gas purchases besides...

Over Rs.10b. TFCs issued in 2001-02. (Corporate Briefs).
August 1, 2002... The country's corporate sector saw a boom following highest 17 issues, worth over Rs.10 billion of term finance certificates listed, beating listing of companies at KSE in 2001-02. Like the local equity markets, showing an increase of 38%,...

Three companies to float TFCs. (Corporate Briefs).
August 1, 2002... Three companies will float TFCs worth Rs.1.758 billion in a month. Quetta Textile Mills Ltd. will float TFC worth Rs.750 million and Crescent Leasing Corporation Rs.250 million. Advisor to both these issues is United Bank Ltd. While Orix...

Brokers with 10% shares not barrel from DFI board seat. (Corporate Briefs).
August 1, 2002... The State Bank would not bar any broker being member of the board having 10% shares in the financial institutions or any bank.

FDI up 33% in 2001-02. (Corporate Briefs).
August 1, 2002... Foreign direct investment has increased by 50.3% in 2001-02 as compared to the previous year. The country has received foreign investment of $484.7 million in 2001-02 against $322.4 million in 2000-01. USA was the major country, put $326...

Mari Gas raises feedstock price by 5%. (Corporate Briefs).
August 1, 2002... Mari Gas Company Ltd. has increased sale price by 5% to Rs.61.68 per MMBTU from Rs.58.5 for gas used as feedstock in old facility from July 2002.