Utility stores raise prices: Withdrawal of subsidies
KARACHI, July 5: The Utility Stores Corporation (USC) on Saturday jacked up the price of sugar by Rs6 to Rs31 in one-go, from Rs25 per kg, followed by recent increase in rates of gram pulse, rice, ghee and cooking oil etc.
In the retail market, the rate of white sweetener surged to Rs32 from Rs30 per kg.
The gram pulse at the utility stores was now being sold at Rs50 against Rs29 per kg three days back. In the retail market, the same quality pulse was available at Rs64 per kg.
The price of Super Kernal Basmati was tagged at Rs93 from Rs80 per kg last week at government’s stores. In May, the super kernel basmati price had been increased to Rs72 from Rs60 per kg. In retail market the same brand is priced at Rs125 per kg.
About 15 days back, the price of subsidised ghee and cooking oil pouch of one kg was raised to Rs120 from Rs100 per kg. In May this year, the USC had raised the rate of one kg pouch ghee and cooking oil to Rs80 from Rs67
http://www.dawn.com/2008/07/06/ebr3.htm
Weekly inflation soars to all-time high
ISLAMABAD, July 5: The weekly inflation surged by all-time high 28.37 per cent during the week ended on July 4 over the corresponding week of last year.
This unprecedented increase in inflation, measured through the Sensitive Price Index (SPI), occurred on the back of more than 10 per cent increase in the oil prices on June 28.
The increase in taxation slabs coupled with increase in gas price pushed the price of 28 food items up in the week, the Statistics Division data showed on Saturday.
The inflation, however, recorded a highest ever increase of 2.06 per cent during the week under review over the previous week.
The SPI witnessed an increase of 31.56 per cent and 30.74 per cent for households in income brackets of up to Rs3,000 and Rs3,001 to Rs5,000 respectively.
For households in the income brackets of Rs5,001 to Rs12,000, the increase in the SPI was in the range of 28.57 per cent, and for households in the income basket of over Rs12,000; the inflation registered a growth of 26.16 per cent over the week last year.
The price of tomato rose by 12.88 per cent to Rs17.88 per kg, potatoes by 12.47 per cent to Rs22.91 per kg, kerosene by 10.44 per cent to Rs61.52 per kg, diesel by 10.11 per cent to Rs55.34 and petrol 9.92 per cent to Rs75.92 during the week under review.
LPG 11-kg cylinder price went up by 5.34 per cent to Rs746.65 each, chicken by 5.11 per cent to Rs90.57, wheat flour by 4.81 per cent to Rs23.76 per kg and egg by 3.51 per cent to Rs52.45 per dozen.
Garlic price increased by 2.32 per cent to Rs34.85 per kg, wheat by 2.25 per cent to Rs20.47, sugar by 2.25 per cent to Rs29.94, onions by 2.21 per cent to Rs15.26 and gram pulse washed by 1.64 per cent to Rs60.11 per kg and firewood by 1.05 per cent to Rs241.69 per 40 kg.
The price of coarse latha up by 1.04 per cent to Rs42 per metre, rice basmati broken by 0.72 per cent to Rs53.49 per kg, gur by 0.72 per cent to Rs32.16 per kg, milk fresh by 0.67 per cent to Rs34.41 per kg, moong pulse wash by 0.55 per cent to Rs54.74 per kg. The rate of washing soap nylon rose by 0.53 per cent to Rs11.38 per cake, masoor pulse washed by 0.47 per cent to Rs112.63 per kg and mash pulse washed 0.44 per cent to Rs72.95.
Mustard oil price up by 0.39 per cent to Rs145.66 per kg, cigarettes (K-2) by 0.36pc to Rs8.47, beef by 0.17pc to Rs131.68 per kg, vegetable ghee (loose) by 0.16pc to Rs134.04 per kg and curd by 0.05pc to Rs40.20 per kg
http://www.dawn.com/2008/07/06/ebr4.htm
Dollar marches past Rs70
KARACHI, July 5: The rupee crossed Rs70 to the dollar on Saturday, the weakest level ever, due to rise in dollar demand from importers and the country’s uncertain economic and political uncertainty.
The rupee closed at a record low of Rs70.13/18 to the dollar, compared to Friday’s closing of Rs69.55/60.
The rupee is now beyond levels last seen in late May, when a precipitous fall prompted the central bank to take steps to stabilise the currency and dampen speculation.
There has been a steady drip in foreign currency reserves since then because of the strong demand for dollars from importers, particularly oil buyers.
The rupee has dropped 13.8 per cent this year as the economy feels the brunt of rising oil and food costs.
Pakistan’s annual inflation has jumped to a three-decade high and it is facing widening fiscal and current account deficits.
“There was an increase in demand for dollars from importers,” said a currency dealer.
“But we also have a widening trade deficit, high inflation so it’s really our fundamentals which are not intact, along with political uncertainty.”
Traders said central bank intervention would stabilise the rupee in the short run but State Bank’s reserves are running low.—Reuters
http://www.dawn.com/2008/07/06/ebr6.htm
Full Version: Lets Celebrate The First 100 Days Of The New Government
Another 1,700 days to go ... so multiple these effects by 1,700 and imagine what it'll be like when this demo-crazy comes to an end ... 
Mr. 110% in action.
We the middle class and poors of this country are facing this inflation and about to be mad now in just 100 days. What will happen in next 100 days? 
Allah in zalimon ko tabah aur barbaad kar ke rakh de. Inhon ne ghareebon ke monh se roti ka nivala bhi chein liya hay.
Allah in zalimon ko tabah aur barbaad kar ke rakh de. Inhon ne ghareebon ke monh se roti ka nivala bhi chein liya hay.
Expect the KSE to hit rock bottom today especially after the recent blasts in Karachi, hell im pulling all my investments out
Link
Unemployed people struggling to make ends meet
LAHORE: “I am convinced that this system is made for the rich and they will take away any opportunity for the poor,” said Noor Elahi, after failing to find work for the second consecutive day. “My children would have no food today,” he said in a trembling voice.
Noor is not alone. There are thousands like him trying to find work so that they could feed their families. The latest increase in petrol and natural gas rates with expected 16 per cent increase in electricity tariff has pushed millions of low wage earners below the poverty line. More than 30 per cent of the workforce consists of daily wage workers. The declining economy has reduced their chance of getting work everyday. This has resulted in increase in number of workers in excess of the demand in the market resulting in declining trend in daily wages. Daily wage workers are facing the pressures of diminishing job opportunities, low wages and increasing rates of daily-use items.
Balancing monthly household budget in the past 18 months has become a nightmare for majority of housewives. Poverty is creeping up on lower middle class families. It has given rise to domestic tensions as well. The bread earner fumes with anger when his wife teases him after coming back empty-handed. “Lack of resources has affected our relationship,” said Sakina, mother of four minor girls. “We are all right the day my husband brings in money. We, however, argue endlessly the day he finds no work,” she added.
“I suffer from acute rheumatic pain but I tolerate it instead of seeking medical help,” said Shahdin, an old man dependent on the earnings of his poor son. Recalling the good old days, he said “few decades ago everyone could get healthcare, but now everyone just prays to God that they don’t get sick because you need lots of money to get treatment”.
If one goes by the weight given to different daily expenses by the government, a man earning a minimum wage of Rs 6,000 could easily balance his monthly budget. What has, however, surprised most economists is that despite increase in food, electricity, petrol and energy rates, the government maintains the same inflation basket that was relevant 18 months ago. Inflation is much higher than what the government claims if realistic weight is given to expenditures incurred by a family of six. The weight of food in the overall inflation has certainly increased from 40.3 per cent to over 50 per cent. Transport consumes more that 10 per cent of family income rather than 7.3 per cent claimed by the government. The impact of energy on monthly budget of a family has increased from 7.3 per cent to over 13 per cent.
The News found that the minimum wage announced by the government hardly covers inadequate food, lowest rent of a house in a slum, minimum travel expenses by the bread earner, substandard education of the children and minimum cost of energy.
Unemployed people struggling to make ends meet
LAHORE: “I am convinced that this system is made for the rich and they will take away any opportunity for the poor,” said Noor Elahi, after failing to find work for the second consecutive day. “My children would have no food today,” he said in a trembling voice.
Noor is not alone. There are thousands like him trying to find work so that they could feed their families. The latest increase in petrol and natural gas rates with expected 16 per cent increase in electricity tariff has pushed millions of low wage earners below the poverty line. More than 30 per cent of the workforce consists of daily wage workers. The declining economy has reduced their chance of getting work everyday. This has resulted in increase in number of workers in excess of the demand in the market resulting in declining trend in daily wages. Daily wage workers are facing the pressures of diminishing job opportunities, low wages and increasing rates of daily-use items.
Balancing monthly household budget in the past 18 months has become a nightmare for majority of housewives. Poverty is creeping up on lower middle class families. It has given rise to domestic tensions as well. The bread earner fumes with anger when his wife teases him after coming back empty-handed. “Lack of resources has affected our relationship,” said Sakina, mother of four minor girls. “We are all right the day my husband brings in money. We, however, argue endlessly the day he finds no work,” she added.
“I suffer from acute rheumatic pain but I tolerate it instead of seeking medical help,” said Shahdin, an old man dependent on the earnings of his poor son. Recalling the good old days, he said “few decades ago everyone could get healthcare, but now everyone just prays to God that they don’t get sick because you need lots of money to get treatment”.
If one goes by the weight given to different daily expenses by the government, a man earning a minimum wage of Rs 6,000 could easily balance his monthly budget. What has, however, surprised most economists is that despite increase in food, electricity, petrol and energy rates, the government maintains the same inflation basket that was relevant 18 months ago. Inflation is much higher than what the government claims if realistic weight is given to expenditures incurred by a family of six. The weight of food in the overall inflation has certainly increased from 40.3 per cent to over 50 per cent. Transport consumes more that 10 per cent of family income rather than 7.3 per cent claimed by the government. The impact of energy on monthly budget of a family has increased from 7.3 per cent to over 13 per cent.
The News found that the minimum wage announced by the government hardly covers inadequate food, lowest rent of a house in a slum, minimum travel expenses by the bread earner, substandard education of the children and minimum cost of energy.
The least the government could do was to control food inflation. But the morons have actually withdrawn all kind of subsidies to utility stores.
But I am sure they'll subsidize rich textile owners in their futile attempt to increase exports. What a freaking mess!
But I am sure they'll subsidize rich textile owners in their futile attempt to increase exports. What a freaking mess!
The rich textile barons as in Yarn Spinners and Processing plants, Denim manufacturers?
We don't need subsidies, we hold monopoly in the region.
Subsidies counter regional competition from Banglaesh, Sri Lanka, Vietnam, Laos, etc.
Their garments are a lot better, and without these subsidies, Faisalabad's weavers and Lahore's garment industry will collapse.
Then it's a chain effect, imports for re-export will decline, Bin Qasim will incur losses, exports will decline, Karachi port will incur losses, business travel will decline, so PIA, Air Blue, and the hotels in Karachi will suffer a setback.
Less foreign exchange, scarcicity of funds, means less taxes, means less projects and developments.
It is those textile industrialist that helped set up and funded Pakistan's own Textile Engineering College, so we know how to give back to society as well.
Downfall of economy is usually a ressilient effect, think far.
Utility stores has nothing to do with Textiles, and that subsidy is for the poor again, the rich won't starve.
Apparently, the rich are parading in some long march, oblivious to the needs to their constituencies.
We don't need subsidies, we hold monopoly in the region.
Subsidies counter regional competition from Banglaesh, Sri Lanka, Vietnam, Laos, etc.
Their garments are a lot better, and without these subsidies, Faisalabad's weavers and Lahore's garment industry will collapse.
Then it's a chain effect, imports for re-export will decline, Bin Qasim will incur losses, exports will decline, Karachi port will incur losses, business travel will decline, so PIA, Air Blue, and the hotels in Karachi will suffer a setback.
Less foreign exchange, scarcicity of funds, means less taxes, means less projects and developments.
It is those textile industrialist that helped set up and funded Pakistan's own Textile Engineering College, so we know how to give back to society as well.
Downfall of economy is usually a ressilient effect, think far.
Utility stores has nothing to do with Textiles, and that subsidy is for the poor again, the rich won't starve.
Apparently, the rich are parading in some long march, oblivious to the needs to their constituencies.
Link
Reserves fall below $11bn
KARACHI, July 17: Pakistan’s foreign exchange reserves fell $292 million to $10.83 billion in the week that ended on July 12, due to heavy outgoings for import payments.
According to official data, the State Bank of Pakistan said its reserves fell $371 million to $7.953 billion, while those held by commercial banks rose $79 million to $2.877 billion from $2.798 billion.
The country’s reserves hit an all-time high of $16.486 billion on October 31, 2007, but have fallen since then because of rising oil payments and foreign investor’s pulling money out because of political uncertainty in the country.
Analysts said the country’s total reserves were barely enough to cover the import bill for the next three months.
The central bank in May increased its key discount rate to 12.0 per cent from 10.5 per cent, to counter accelerating inflation and widening fiscal and current account deficits.
Analysts expect the central bank to raise rates again in the coming weeks.—Reuters
Reserves fall below $11bn
KARACHI, July 17: Pakistan’s foreign exchange reserves fell $292 million to $10.83 billion in the week that ended on July 12, due to heavy outgoings for import payments.
According to official data, the State Bank of Pakistan said its reserves fell $371 million to $7.953 billion, while those held by commercial banks rose $79 million to $2.877 billion from $2.798 billion.
The country’s reserves hit an all-time high of $16.486 billion on October 31, 2007, but have fallen since then because of rising oil payments and foreign investor’s pulling money out because of political uncertainty in the country.
Analysts said the country’s total reserves were barely enough to cover the import bill for the next three months.
The central bank in May increased its key discount rate to 12.0 per cent from 10.5 per cent, to counter accelerating inflation and widening fiscal and current account deficits.
Analysts expect the central bank to raise rates again in the coming weeks.—Reuters
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