Twirp : Terrorist Wahabi Islamic Republic Pakistan

[Naresh]

Latest Economic News from the Land of the Pure, Blessed with Miracle Making Salwar Kameez :

<b>1. WB urges Pakistan for prompt action for economy</b>

ISLAMABAD : Pakistan must take immediate action to prevent its economy from collapse, the World Bank has warned.

It said "painful adjustments" would be needed to prevent a crisis sparked by high oil and food prices. Under President Pervez Musharraf, the country's economy flourished. United Nations predicts 2008 growth at 6.5% despite its political troubles.

But there are fears that growth, which has been led by consumer spending, could be hit by imported inflation. "This is not yet a crisis, but the economic picture for Pakistanis not good," said World Bank vice president Praful Patel.

<b>World Bank warned that the rising budget deficit, higher inflation, a growing current account deficit and sinking foreign exchange reserves could all threaten Pakistan's economy unless the new government took urgent action.</b>

"Growth can only continue if Pakistan adjusts to new global reality, which includes high prices for oil, commodities and foodstuffs such as wheat," Patel said.

The comments came after Bank officials met with representatives of new Prime Minister Yusuf Gilani. Bank noted there were some positive areas in economy, as foreign investment remained strong and stock market had posted gains.

World Bank said its team discussed changes in oil imports, taxation and prioritizing government spending in order to lower budget deficit while protecting the poor.

Subsidy programmes could include cash transfers, which were given to families affected by devastating October 2005 earthquake, to offer "an appropriate safety net for poor".

<b>2. Country’s foreign exchange reserves continue to diminish</b>

<b>KARACHI : The foreign exchange reserves have registered a further decrease of 345 million dollars during the last week, reflecting a continuous decline in the country’s foreign reserves.

After the said decline during the week ended March 22, the foreign reserves stood at 13.84 billion dollars, said the State Bank of Pakistan.</b>

Out of the total reserves the central bank holds 11.35 billion dollars while the 2.14 billion dollars are with the commercial banks.

Economic experts are of the view that the downward trend of the country’s foreign reserves could continue in the coming days because the import bill keeps on swelling compared to the exports.


<b>3. Current account deficit soars 44 per cent</b>

<b>KARACHI : The current account deficit surged by 44 per cent during the 8 months of the FY07-08.

The balance of payment turned further negative during the July 2007 to February 2008 pushing the current account deficit to 8.12 billion dollars compared to 5.18 billion dollars in the corresponding period last year, said the State Bank of Pakistan on Thursday.</b>

The total increase in current account deficit climbs by 2.564 billion dollars.

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