Oil rises above $80,



LONDON: Oil prices rose on Tuesday to above $80 a barrel after a late-season hurricane disrupted oil and gas output in the Gulf of Mexico and the dollar stayed close to a 15-month low. US crude for December delivery was up 92 cents to $80.35 a barrel by 1525 GMT, after trading most of the session below yesterday s close of $79.43. London Brent crude was up $1.01 at $78.78. Hurricane Ida, the first real weather threat to oil production of the 2009 season, was downgraded to a tropical depression on Tuesday, but output remained curtailed as producers awaited its passage out of the Gulf. Ida shut in 29.6 per cent of oil production and 27.5 per cent of gas output from the Gulf of Mexico, the US Minerals Management Service said on Monday. Traders said other reasons for oil s gains were the dollar s ongoing weakness, which has also spurred gold to record highs above $1,100 an ounce. We ve held onto the hurricane gains, but the strength in gold above $1,100 and the weak dollar are the reasons we haven t come down more, said Christopher Bellew, a broker at Bache Commodities. The dollar rose on Tuesday from a 15-month low, but analysts said the trend of dollar weakness was still in place, potentially providing support for dollar-denominated commodities.

Looking to the long term, the International Energy Agency published its annual World Energy Outlook on Tuesday, forecasting a rise in primary energy demand globally by 1.5 per cent every year until 2030, and calling for $26 trillion in investment to meet the expected demand. Market reaction to the report was negligible because the annual report is a projection on the basis of a scenario, trying to look 20 years out, Harry Tchilinguirian, senior oil analyst at BNP Paribas, said. Long term it s an important guideline, but any reactions in oil short-term will be on dollar moves, equity markets and central bank decisions, he said. Market-wise, the big issue is how commodities are being targeted by investors looking for yield as a result of accommodative monetary policy, Tchilinguirian said. The latest snap shots on near-term fundamentals will come from US inventory data. Analysts predicted US crude oil inventories last week rose slightly because of higher imports, according to analysts polled by Reuters late on Monday. Industry group the American Petroleum Institute (API) will release weekly inventory data later on Tuesday, while a report from the US Energy Information Administration (EIA) will be delayed from Wednesday to Thursday due to a federal holiday on November 11. Oil prices have more than doubled from a low of less than $33 touched in December, although they are still barely half their high of more than $147 a barrel touched in July last year. The catalyst for this rally has been, in our view, long-anticipated signs of improvement in oil fundamentals in the context of generally constructive economic data, analysts at Goldman Sachs wrote in their Commodity Watch note to investors. Strong emerging market demand has pulled supply elsewhere, reducing US petroleum imports. Specifically, Chinese oil demand continues to surge, driven by strong economic activity.

Gold continues to climb, now at Rs34,755 a tola



KARACHI: Amid expectations that gold may jump further, the precious metal reached Rs34,755 a tola, taking a Rs255 leap in a day on Tuesday. The opening rate for the local market on Tuesday was Rs34,600 as compared to Rs34,500 on Saturday, which later rose to Rs34,755 by the time businesses shut here in the city. This is so far the highest level in the history of gold. This swift rise is said to have been caused by bulk buying of gold by Sri Lanka, besides India and China who have bought from the IMF, said Haji Haroon Chand, President of All Sindh Saaraf and Jewellers Association. A number of countries are diversifying their foreign exchange reserves and moving away from the weakening dollar to gold. In the local markets, the rate for 10 grams of gold jumped to Rs29,790 from Rs29,575, scoring a Rs215 rise in a day. In the international market, an ounce of gold was priced at $1,104, up from $1,095 in a day, which is expected to rise further, said Chand. However, as the rate of the precious metal goes up, local dealers see a further decline in business as the buying power keeps on falling day-by-day amid an economic downturn in the country. In London, gold prices rallied toward recent record highs above $1,110 an ounce on Tuesday, reversing earlier losses, as the dollar erased initial gains against a basket of six major currencies, adds Reuters.

Spot gold hit a session high of $1,109.20 an ounce and was at $1,106.90 at 1540 GMT, against $1,103.85 late in New York on Monday. The market earlier dipped as low as $1,096.60. The metal also found support from renewed investor interest after the International Monetary Fund announced last week it had sold 200 tons of gold to India s central bank, which prompted the metal to reach record highs. Given all the noises hedge funds have been making, plus all the noise surrounding further potential central bank buying, it is difficult to see much of a downside, said Societe Generale analyst David Wilson. US gold futures for December delivery on the COMEX division of the New York Mercantile Exchange firmed $5.90 to $1,107.30 an ounce. The precious metal hit an all-time high of $1,110.85 an ounce on Monday as the dollar index, which measures the US currency s performance against a basket of six others, hit its lowest since August 2008. Gold initially struggled to break new ground as the dollar edged up on Tuesday, but bounced back as the currency slipped back towards 15-month lows against a currency basket. Strength in the US unit dampens gold s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. The dollar remains susceptible to further losses, analysts said. My feeling is we will actually see the dollar break down further in the next few weeks, and that will help take gold up to new levels, said Standard Chartered analyst Daniel Smith. We think $1,200 is quite a realistic target before the end of the year.

Sugar crisis to create medicine shortage

KARACHI: Former chairman FPCCI Standing Committee on Pharmaceuticals, Dr Mushtaq Noorwala, while expressing concern over the continuing crisis of sugar in the country, has cautioned that the pharmaceutical industry and other industries using sugar as raw material will be severely affected.

If availability of sugar at a low price is not ensured for the pharmaceutical sector, there will be a shortage of medicine which will create serious problems, especially for the common man. Besides, a large number of people engaged with this industry will be rendered jobless, he said in a statement. Dr Noorwala regretted that despite the directives of the Supreme Court of Pakistan and the government s stance about availability of huge stocks of sugar, the commodity is sold at an unbearably high price and is not easily available to the public. He suggested that sugar can be sold by hawkers also to save the people from standing in long queues before utility stores. He was of the opinion that some elements, by creating an artificial crisis of sugar or wheat flour, were actually defaming and creating trouble for the government. He appealed to the consumers of soft drinks, ice creams, sweets, confectionery, etc, to cut their consumption for saving sugar.

Stakeholders urged to resolve yarn price issue

KARACHI: The Pakistan Readymade Garments Manufacturers and Exporters Association has called for immediate intervention of the textile ministry to control rising yarn prices in the domestic market. PRGMEA Chairman Mohsin Ayub Mirza said on Tuesday that all the stakeholders should sit together and develop a mechanism for profit sharing so that neither any industry becomes sick nor the country suffers and loses export markets. He said a 30 to 40 per cent increase in yarn prices and its shortage due to increase in its export would not only hurt this sector but would also affect inflow of future export orders. Owing to current yarn prices, international buyers are not willing to place orders with Pakistani textile sector. He said the steep rise in yarn prices would deprive the country of short-term delivery advantage, which has been its edge over other textile exporting countries. The textile ministry has set a very progressive export target for the industry but we are afraid that we would not only fail in achieving the export target in the absence of any immediate action on the yarn prices issue but it would also bring the industry to the verge of collapse, he said. Although the situation of the textile industry has improved after the introduction and basic implementation of textile policy, the yarn issue alone can badly hurt the value added textile sector in a worst way than the shortage of power and law and order situation. He urged all the stakeholders to converge to one mutually beneficial agenda and make yarn availability possible for the value added textile sector so that all businesses continue to run smoothly.

US to help Pakistani businessmen build global partnerships

ISLAMABAD: The United States wants to engage Pakistan in a long-term and productive dialogue to facilitate Pakistani entrepreneurs in building partnerships with the international business community and tackle the problems of poverty, unemployment and other challenges. This was stated by Paul A Brinkley, US Deputy Undersecretary of Defence (Business and Transformation) and Head of the Task Force on Business and Stability Operation, while addressing the business community at the Islamabad Chamber of Commerce and Industry (ICCI). According to an ICCI press release here on Tuesday, he said that the task force s visit to Pakistan was aimed at interacting with the business community, knowing their views for building stronger ties between the two countries and working together for bringing international businessmen closer to their Pakistani counterparts for exploiting business and investment opportunities to strengthen the country s economy. Speaking on the occasion, Saleem H Mandviwalla, Chairman Board of Investment and State Minister for Investment said Pakistan was a dynamic country blessed with immense human talent, adding that the US should help the country in developing skills and expertise of its human resources.

He said the purpose of introducing the US task force on business and stability operation to the country s chambers was to provide them an opportunity to get a macro picture of Pakistan s business environment and to explore new opportunities for enhancing investment in different sectors of Pakistan s economy. He expressed hope for more future trips of the US task force to facilitate Pakistani businessmen in improving their business skills and strengthening their links with their international counterparts. ICCI President, Zahid Maqbool, in his welcome address said that US was the largest trading partner of Pakistan, but still the current bilateral trade and investment do not reflect the true potential of both countries. He said that US should provide easy access to Pakistani products in its markets and rationalise its tariff on Pakistani exports, particularly textile products. Speaking about the Bilateral Investment Treaty (BIT), he said it should be based on the principles of equality and fairness providing reciprocal advantages to Pakistani investors in the US. He said the US should help Pakistan exploit its immense natural energy resources including wind, coal, hydro and solar energy potential, which provide cheap energy as compared to thermal power. He invited US investors for collaboration in energy, oil and gas, infrastructure development, agriculture, IT and many other sectors of Pakistan s economy and for starting joint ventures here.

Bosicor posts heavy loss of Rs10.33bn

KARACHI: Loss after tax of Bosicor Pakistan refinery has jumped to Rs10.33 billion for the year ended June 30, 2009. It will be worth mentioning here that the company had managed to book a profit after tax of Rs15.12 million last year (2008). Accordingly, loss per share translated into Rs26.35 against earning per share of Rs0.04 in 2008. The loss for 2008-09 has arisen primarily from exchange losses of Rs4.4 billion, an operating loss of Rs4.5 billion and financial charges of Rs1.78 billion, the company said in a communique to the Karachi Stock Exchange. During the year under review, the company achieved gross sales of Rs54.77 billion and net sales of Rs44.62 billion as compared to gross and net sales of Rs40.09 billion and Rs35.81 billion respectively last year, it added. During the year due to unprecedented losses, the company faced severe constraints in meeting its financial obligations. At this crucial phase, the company s sponsoring shareholders again showed commitment and endorsed their financial plan prepared by the management of the company and arranged financial support amounting to Rs4.2 billion. This enabled the company to partially meet the required funding gap from the losses, said Bosicor CEO Amir Abbassciy in the statement.

Women asked to play role in economy

LAHORE: Lahore Chamber of Commerce and Industry Vice President Faisal Iqbal Sheikh asked women entrepreneurs to play their role with greater reliance, self esteem and dedication for economic growth of the country. The LCCI vice president was speaking at a function arranged in honour of women entrepreneurs at the LCCI on Tuesday. LCCI former president Mian Shafqat Ali and Convener Standing Committee on Women Resource Centre Nasira Taskeen also spoke on the occasion. He said no country in the world could prosper and progress without due participation of women in all spheres of life. He said according to the UN report the economic development is closely related to the advancement of women. In countries where women have advanced, the economy is usually steady. By contrast, in countries where women have been restricted, the economy is stagnant. Taskeen said the LCCI would utilise all its resources to solve the issues being faced by business women.

She said all measures were being taken to ensure the participation of women entrepreneurs in LCCI s foreign delegations or for their participation in foreign exhibitions as they had to face troubles with particular reference to their business visits. Speaking on the occasion, the Lahore Chamber of Commerce and Industry former president said women constitute 52 of the total population of the country but only 11 per cent are engaged in business activity and are contributing to the national economy while the rest is confined to household affairs therefore there was a dire need to engage more and more women into business activities with a view to promoting the economy. He said today women are well aware of their rights and they are entering into non-traditional businesses like boutiques, beauty parlours, textile designing, printing and publishing, architecture, banking, IT, business management, fashion designing et cetera. He assured the Lahore Chamber of Commerce and Industry to leave no stone unturned for the betterment of women entrepreneurs. He said they should acquire modern techniques for business promotion and come forward with new ideas.

Trade between Pakistan, Lanka strengthens after FTA

KARACHI: Consul General of Sri Lanka, VS Sidhat Kumar on Tuesday said Sri Lanka believes in market-oriented policies for helping increase export trade. In a meeting with members of SITE Association of Industry (SAI) here at the Association s office, Kumar said foreign investment is encouraged. Sri Lanka s most dynamic sectors now are food processing, textiles, beverages, port construction, telecommunications, insurance and banking, said an SAI statement here. He said that bilateral trade between both countries has been strengthened through an increase in the number of products that can be imported from Sri Lanka under the final phase of Free Trade Agreement (FTA) effective from March 20, and the number is 4,000. He identified these imports as fish, meat, vegetable, foliage, plant, sugar, biscuits, pastry, cakes, mineral products, fibre boards, leather and leather-based products, footwear, gems, jewellery, value-added copper products, electrical items, printed circuits, bicycles, boats, and floating structures. Similarly, he said, there is also a great demand for Pakistani products. Pakistan can export cotton yarn and fabrics, potatoes, fresh or chilled, pharmaceutical products, knitted or crocheted fabrics, articles of iron and steel, galvanised pipes, rice, fish and other sea food, other made-up textile articles, articles of apparel and clothing accessories, rods of refined copper, etc. Kumar said that Pakistan has become the second largest trade partner for Sri Lanka in the South Asian region. Trade between the two countries increased to $270 million in 2008. Sri Lanka s exports to Pakistan also increased on the import of coconut products, tea, rubber and rubber-based products by Pakistan.

Imports from Pakistan mainly consist of rice, vegetables, pharmaceuticals, potatoes, textiles, and apparel. Only the export of valued-added textiles has reached more than $100 million. Responding to a question about the exchange of skilled workers, technicians, and supervisory staff in the field of textile, especially valued-added textile, he welcomed the idea and said that he would recommend it to the government for easing the procedure so that more skilled manpower could come to Pakistan and assist the textile units in producing quality products. He also mentioned that Sri Lanka also has specialists and technical supervisory staff in other fields too. Pakistani entrepreneurs can avail their services as well. Bilateral trade is also improving due to liberalisation through FTA. The Consul General, however, regretted that investment from Pakistan is not coming despite a liberal investment policy. Many sectors are available for collaboration in Sri Lanka. He extended an initiation to Pakistani investors to come to Sri Lanka and invest there. The Sri Lankan garment sector is highly equipped educationally and professionally. The scope for herbal medicine is also very high in Sri Lanka. The Consul General extended an invitation to SITE Association members to participate in the Sri Lankan exhibition of Agri Livestock and Fisheries scheduled to be held in November. He also informed that the Karachi Chamber of Commerce and Industry is holding a seminar on Free Trade Agreement between Pakistan and Sri Lanka in the first week of December, to discuss ways to boost two way trade and to get maximum benefit form the agreement between the two countries, and noted that it would be a good opportunity for the local businessmen to gain awareness about two-way trade between Sri Lanka and Pakistan. Earlier, Chairman SITE Association, Salim Parekh welcomed the Consul General and acknowledged the progress that both countries are making in terms of bilateral trade, especially after the free trade deal was signed in the recent past. Chairman International Relations and Diplomatic Affairs Committee SITE Association, Senior Vice Chairman SITE Association, Naseem Anwar, also spoke at the occasion.

Iron-fortified flour production gains pace

LAHORE: The mandatory supply of iron-fortified wheat by World Food Program has accelerated. The number of flourmills producing fortified atta has reached 92 in past one year, 40 of them in NWFP. Flour fortification with iron has suddenly picked up in Pakistan as the number of flourmills adding iron in flour has increased from 68 in 2008 to 160 particularly in NWFP where 40 mills were added after the Swat operation. Iron (Fe) deficiency is a major cause of anaemia in children and pregnant women. According to UNICEF estimates, iron deficiency affects half of the developing world s infants, undermines the health of 500 million women of reproductive age and leads to more than 60,000 childbirth deaths a year. Iron deficiency is also stated to be one of the major causes of high infant mortality rate in Pakistan. It also causes a range of other problems in millions of people, including impaired cognitive development in children, fatigue, maternal mortality and low productivity in the workplace. As wheat flour is the staple food of majority in Pakistan it was the most suitable food for iron fortification. The wheat flour fortification program was initiated in 1997. Trials were conducted for various iron compounds to find out the efficacy and safe ratio of iron compound that could be added in flour. In 2002 Global Alliance for Improved Nutrition (GAIN) provided $3 million to Pakistan to procure NaFeEDTA a substance containing bio available iron that could be mixed in flour.

It leaves no taste when added to food and remains stable under storage and cooking conditions. It also prevents rancidity, while research into the product s molecule has proved that compound is absorbed into the human body two to four times better than with other iron compounds. The mills were required to buy the iron mixer from their own resources while NaFeEDTA was to be provided from the GAIN grant to the flourmills free of cost. The selected mills were bound to supply the atta bags at normal atta rates. Introduction of fortified flour was slow in Pakistan. Three years after grant only 50 flourmills in Pakistan started fortifying flour with iron. The process slowed down thereafter and only 18 more mills were added during 2004-2008. Pakistan was way behind the target of adding 150 flour mills in the fortification program by 2010. The speed of fortification however picked up after 2008 and 92 more mills have been added since then enabling the country to exceed the target a year ahead. GAIN acknowledged this achievement by awarding Flour Fortification Initiative Leadership award in Italy to the coordinator flour fortification in Pakistan Dr Bilal Aslam Soofi. Now fortified flour is available to 30 per cent of the urban population of Pakistan, said Soofi. He said the iron compound grant provided by GAIN would expire next year. He said that at the award ceremony a request was made to GAIN to extend the grant for free supply of NaFeEDTA for another year. He said even if the grant is not provided it would add only Rs2 per 20 kg in the cost, which he said is affordable in view of the huge health benefits associated with it. Fortification of flour with iron is mandatory in most of the developed countries. In Pakistan it is still optional. Nutritional experts have advised the government to make it mandatory by 2012 so that the menace of anaemia could be addressed.

Textile package

KARACHI: The State Bank of Pakistan has received Rs5 billion from the government under the textile package but there are no instructions for utilisation of the amount despite several demands by the textile industry. According to a letter of the State Bank addressed to the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), the Ministry of Textile is yet to provide the exact heads where this amount would be utilised. The letter says that budgetary allocation was required for several schemes announced in the Trade Policy including duty drawback for the textile sector, subsidy to PTA users and Export Finance Scheme (EFS) related incentives and also for the disbursement of remaining 60 per cent amount of R&D claims. We cannot start utilisation of the released funds unless Mintex clarifies under which schemes the funds are to be utilised and in what proportion, said the letter. The textile industry has been facing financial crunch and is still waiting for the R&D claims. There are 60 per cent dues of R&D yet to be paid. The PRGMEA, following the letter of the State Bank, has written to the Ministry of Textile to release funds for R&D immediately. Bilal Mulla, Chairman FPCCI Standing Committee on Value Added Textile Products and former chairman PRGMEA, told The News that due to absence of coordination between Mintex, SBP and Ministry of Finance the allocated fund was lying unutilised with the SBP.

Though the textile policy was announced on August 12, necessary notifications were issued on September 1 and here we stand in mid-November without real benefit of the policy. He said implementation of much-appreciated textile policy till today was very low. The textile policy announced with long-term vision and textile export target of $25 billion in next five years was hailed by all textile sectors across the country. However on September 1, the required notification was issued by Mintex pertaining to duty drawback with full procedure of refund through the State Bank of Pakistan (SBP). Everyone knows the package of Rs40 billion for exports has already been approved in budget 2009-10 then why there is delay in issuance of instructions to the SBP, which is responsible for the disbursement of claims under the said notification, Mulla said. The current procedure of registration and verification of export units is very cumbersome, he said, was the main hurdle in implementation of notification under the Textile Policy. We suggest that Mintex should push Textile Commissioner Office, Karachi and regional offices in Lahore and Faisalabad to resolve the issues locally. Exporters belonging to different parts of the country are unable to access Islamabad Office, said Mulla. Rana Muhammad Farooq Saeed Khan, Minister for Textile Industry, in a recent programme said that each word of the textile policy would be implemented. But, no one knows why State Bank has not been instructed to utile the funds available under textile package.

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U.S.: Unemployment’s Rate is the Achilles Heel


As housing is giving some relief to household pockets, the Federal Reserve warns about a slow recovery. The Euro, in the mean time, is testing key resistance levels against the U.S. dollar. U.S.: housing still supportive
Tangible signs of improvements are beginning to show up, albeit the recovery remains fragile in the United States. In July, the conference board index increased 0.6% month-on-month from + 0.8% in June. It was the fourth consecutive month of increase, giving further prove that the U.S. economy might have bottomed. In a speech at the Jackson Hole Symposium, Fed Chairman Bernanke confirmed that the worst might be over for global economies, thus indirectly anticipating a safe-haven demand’s decline for U.S. dollars and Treasuries in the coming months. Nonetheless, the Federal Reserve will keep rates low for the first part of 2010 with inflation so mild. In July, the producer price index (PPI) fell 0.9% versus the expected -0.4%. In reality, after two months of gains, 6.5% in June and 15% in May, housing starts slid by 1.0% in July to 581,000 annualized (+2.5% expected). Nevertheless, singles component (three-quarters of the market) rose 1.7%, while multiple houses declined 13.3%. Starts are still above the average of the first three months of the year, although away from the over 2 million produced in 2005. Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media. This article contains the following sections:
  • U.S.: housing still supportive

  • Is the German’s recovery sustainable?
  • U.S dollar: Looking For The Line of Least Resistance


    As housing continues to improve, unemployment could rise again in the coming months. In Germany, confidence is growing, while the economy might take advantage of global growth U.S.: housing is back?
    Unemployment remains the biggest challenge for the U.S. economy, despite losses declining to 220,000 from 247,000 in July. In reality, we are experiencing the lowest job contraction in more than a year, but the unemployment rate could again rise due to the slow recovery in the last part of 2009. At the contrary, the real estate market is confirming the good trend and it is expected to positively contribute to the Gross Domestic Product (GDP) numbers, along with inventory growth for various goods. In July, new home sales moved up 9.6% year-on-year to 433,000 units from June’s 395,000. It has been the fourth consecutive monthly increase and the largest gain since February of 2005. With three regions out of four posting good results, inventories are now 7.5 months supply from 8.5 months in June, far away from the peak of 12.4 months reached in January. Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media. This article contains the following sections:
  • U.S.: housing is back?

  • Germany: economic expectation on the rise

  • EUR/USD: Testing key resistance lines.
  • EURO: At Key Levels Against the U.S. dollar

    The Federal Reserve and the European Central Bank should keep rates steady for the first part of 2010 as well, since the economic recovery remains fragile in some sectors and inflation is low. The Euro is once again at key resistance lines against the U.S. dollar. A breakout would possibly set the currency for a strong move up.

    U.S.: Some improvements, but not enough
    Growth remains weak in the United States, but sings of improvement are showing at various levels of the economy. Housing has clearly found a bottom, while consumer confidence has increased slightly in the recent months. For the first time since 20007, the ISM manufacturing survey moved up to 52.9 in August from 48.9 the previous month. New orders rose to 64.9 from 55.3, marking the strongest gain since 2004. The ISM services climbed instead to 48.4 from 46.4 in July. Nevertheless, the price paid component jumped to 63.1 from 41.3, thus anticipating some inflationary pressure ahead. The Federal Reserve is expected to keep rates accommodative the first part of 2010 as well, since the recovery is still very fragile and household savings weak.


    Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.

    This article contains the following sections:

  • U.S.: Some improvements, but not enough

  • Europe: Unemployment increasing more?

  • EUR/USD: Trying the resume the long-term uptrend.

  • EURO: Setting The Long Term Trend?


    As the European economy is moving out of recession, the Euro currency is at key levels against the U.S. dollar. A movement above the next resistance could set the trend for the next weeks/months.
    U.S.: consumer spending to increase?
    More time is needed to see some tangible results, but the economy is on the move again in the United States. Last week, the Beige Book confirmed that the economic activity is stabilizing, as the job market and the manufacturing sectors are registering some minor upticks. In reality, the average duration of unemployment is at historical highs and jobless rate for young people is almost 26%. Public offices are laying-off employees, since some states are registering declines in tax revenues. Initial jobless claims fell to 550,000 in the week of September 5th, versus the expected down move of 570,000. Nevertheless, they remain near the high of the year. Housing, at the contrary, appears to be finally out the woods. Inventories are declining, while building permits are increasing. Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media. This article contains the following sections:
  • U.S.: consumer spending to increase?

  • Europe: domestic demand improving

  • EUR/USD: Resistance holding for now.
  • U.S Dollar: Short Term Rebound


    The recovery remains mild for now in the United States and in Europe, as unemployment is high and saving is increasing. The Euro is at important resistance lines against the U.S. dollar. A corrective move is possible, but the long-term trend stays bullish. U.S.: Rates to remain low, but an exit strategy is ready.
    The economic growth is on the move again and some tangible results should be seen shortly. Inventories are being implemented and production is increasing. Spending will improve, along with commodity prices, supported by the world economic recovery. In August, car sales have moved up more than 50% year-on-year in China, India and Brazil. The housing market should continue to show the way in the United States. Housing starts rose 1.5% in August, while existing home sales declined 2.5%, but they remained well above the low registered in November. In effect, during last week FOMC¡¦s meeting, the Fed appeared more optimistic about the economic growth, albeit activity should remain subdued for some time. Durable good orders fell 2.4% (+0.5%) in August, after having increased 4.8% in July. Orders are up overall for the quarter, capital goods orders (excluding aircraft and defense) increased almost 9.0% annualized over the three months, but activity is not strong enough to relief the unemployment rate from the bottom yet. As a result, rates will remain low for now and an exit strategy will be implemented as soon as the economics¡¦ turnaround becomes sustained. The Federal Reserve postponed the timeline for the purchase of mortgage-backed and agency debt to the end of the first quarter of 2010. However, current recovery should be mild, since recapitalization is still in process. The huge deficit will weight on U.S. growth and limit the American economic potential. Unemployment will remain high and savings will increase. Americans are adapting to the new reality, characterized by tight credit and increasing commodity prices, by reducing spending and tempering debt. The strong expansionary cycles of the past are history. Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media. This article contains the following sections:
  • U.S.: Rates to remain low, but an exit strategy is ready.

  • EUROPE: A mild recovery so far.

  • GBP/USD: Correcting.
  • ECB: Rates to Remain Steady


    The unemployment rate remains high in the U.S and in Europe and could rise further over the short term. However, new orders are improving and a turnaround might be near. The European Central Bank (ECB) meets this week in Venice (Italy). Rates should remain steady, although an exit strategy for next year could be ready.
    U.S.: Home prices to increase.
    The U.S. economy is slowly moving out of the deep recession of the past two years, albeit the data remains volatile and unstable. Ups and downs are normal during turning points. Some sectors perform better than others, but an equilibrium should emerge as time passes by. The manufacturing industry, as an example, is performing again, since exports to major economies are increasing. In reality, the U.S. manufacturing ISM index declined to 52.6 in September, but it remains above the benchmark of 50 for the second straight month. In fact, 13 out of 18 industries registered some gains and improvements are broad-based among various economic sectors. The housing market remains nevertheless the leading force. Home inventories are declining and prices are beginning to rise. Current affordability and tax incentives are driving the market and the trend should continue in the coming months as well. However, the move could be subdued by the new saving mentality which focuses on reducing debt and improve personal finances.

    Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media. This article contains the following sections:
  • U.S.: Home prices to increase.

  • EUROPE: New orders rising.

  • EUR/USD: Testing resistance line.
  • Is The U.S. Dollar Resuming the Downtrend?


    The U.S. dollar is again under pressure, as markets are anticipating a different scenario which contemplates higher interest rates next year in Europe and eventually in the U.S. U.S.: The saving’s rate to spike. Is the long consolidation of the dollar over? The decline of the greenback against major currencies and the Australian dollar/Canadian dollar in particular might be the beginning of a new leg down that could last until December. The decision of the Royal Bank of Australia to increase interest rates will eventually set a worldwide domino’s effect that could lead to higher rates, higher inflation and higher commodity prices next year. In reality, the world’s economic recovery is in motion, albeit it will be subdued by the long-lasting consumer deleveraging. The recession has changed the spending habit for one generation at least, considering that interest rates are set to rise substantially over the years, if history repeats itself. In fact, over 150 years, interest rates have shown the tendency to bottom roughly every 50/60 years (1900, 1945, 2000) and then to trend up for about 20/30 years. Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media. This article contains the following sections:
  • U.S.: The saving’s rate to spike.

  • ECB: rates steady for now, but the count-down has begun.

  • USDCAD: falling?
  • Currency Rates in India

    October 18, 2009, 4:31 am


    Currency Name Buy Sell Currency Name Buy Sell
    US Dollars46.5549.95Newzealand Dollar26.9534.85
    Sterling Pound77.1582.05Norwaygian Kroner5.857.95
    Euro66.2570.35Oman Rial113.65141.25
    Australian Dollar37.1544.35Qatar Rial11.8515.25
    Baharain Dinar118.15142.35South African Rand3.456.65
    Canadian Dollar41.1546.25Saudi Rial10.1516.25
    Danish Kroners6.458.95Singapore Dollar31.1536.75
    Hong Kong Dollar4.858.95Swedish Kroner4.858.95
    Japanese Yen /1000490.65560.15Swiss Francs40.0547.65
    Kuwati Dinar155.95186.65Thai Bhat / 100125.15169.15
    Malaysian Ringtt11.5516.85UAE Dirhams12.213.95

    Forex Brokers of Pakistan

    H & H Exchange Co. (Pvt) Ltd.

    Head Office
    Address: Suite # G-17, Ground Floor, Saima Trade Tower, Dr. Ziauddin Ahmed Road
    Karachi, Sindh 74000
    Telephone: UAN : 111 44 00 44
    +92.21.2212882-89
    Fax: +92.21.2212890

    Dollar East Exchange Company

    Head Office Address: 97-A Jail Road, Lahore, Punjab 74000
    Telephone: +92-42-7555616
    +92-42-7598529
    Fax: +92-42-7555615


    Emirates Global Islamic Bank Limited (EGIBL)

    Head Office
    Address: Shopping Arcade, Karachi Sheraton Hotel & Towers, Club Road, Karachi.
    karachi, Sindh 74000
    Telephone: +92-21-111113442


    LAXY EXCHANGE (PVT.) LTD

    Head Office
    Address: S/No. 10 & 11, Sasi Arcade, Opp. Uzma Shopping Plaza, Blk-7, Clifton, Khi
    karachi, Sindh 74000
    Telephone: +92-21-5875141


    Khanani & Kalia International (Pvt.) Ltd.

    Head Office
    Address: Suite # 1101-1105, 11th Floor, Block-A, Saima Trade Tower I. I. Chundrigar Road.
    Karachi, Sindh 74000
    Telephone: +92-21-111-554-003
    +92-21-2217001-10
    Telex
    27489KKI.PK
    Fax: +92-21-2218094
    +92-21-2218087


    ZARCO EXCHANGE COMPANY (PVT) LTD.

    Head Office
    Address: 32-A Lawrence road,
    Lahore, Punjab
    Telephone: 0800-12345, 0800-67890
    +92-42 6301253, 6301977
    Fax: +92-42 6368796, 6362217



    A Khanani and Kalia Money Exchange

    Islamabad Office
    Address: Unit # 1, Chowdry Plaza, Blue Area, Opp. Nafdeck Cinema .
    Islamabad, Punjab 74400
    Telephone: +92-51-111-554-554
    Fax: +92-51-2274457


    A TO Z MONEY CHANGER

    Head Office
    Address: 184,Paradise Shopping Centre,Saddar
    karachi, Sindh 74000
    Telephone: (92 21) 5686968
    (92-21) 5686650


    AA EXCHANGE COMPANY (PVT) LTD

    Head Office
    Address: Office# 1-2, Mezzanine Floor, Block 46, Madni Plaza, Jinnah Avenue, Blue Area, Islamabad
    islamabad, punjab
    Telephone: +92-51-2271700

    Megapixel Wars' are over


    There are celebrations when a war ends, but sometimes confusion, too. The sense of purpose, the unifying morale lift, maybe even the economic boost, are over. That was certainly the case during the Great Megapixel Wars of 1996-2007. During these years, the world’s camera companies fought doggedly for our hearts and minds, using megapixel count as a weapon. “Ours takes 6 megapixel photos!” “Ours takes 8!” And we marched to their orders, buying a new camera every other year just to keep up. Now that that war has ended (the megapixel race has pretty much stopped at around 12) the camera companies find themselves flailing for new sales points. Cameras these days have more bells and whistles than a marching band: image stabilizers, superlong zooms, hi-def video, waterproof cases, face recognition, smile detection, even blink detection. This month, though, some kind of line has been crossed. Two new cameras from Nikon and Samsung don’t just tinker with the camera formula, they rewrite it. One adds a second screen; the other adds a built-in projector. Actually, Samsung’s DualView TL225 and TL220 cameras introduce two radical elements: a screen on the front and a gesture-and-tilt vocabulary for controlling the thing. (The TL225, priced at $350, has a 3.5-inch back screen, brushed-metal body and HDMI jack for a hi-def TV; the TL220, $300, has a 3-inch screen, plastic body and no HDMI.) What draws the most attention, of course, is that 1.5-inch front screen. When the screen is turned off, it’s invisible. It vanishes completely into the camera’s smoky-dark case. When you turn it on (by tapping that empty spot with your finger), however, it’s capable of performing several ingenious stunts. The obvious one is framing self-portraits. On ordinary cameras, that’s a matter of guesswork, or of handing the camera to passing strangers and praying they won’t just run away with it. On the DualView, you can see precisely how the shot is framed, how your expression looks and whether you’ve got spinach in your teeth. Actually, why not use it even when you’re not taking self-portraits? Shouldn’t everyone have some say in what your pictures of them look like? When you dial up Kid mode — one of the camera’s 13 canned sets of scene settings — the screen does something else clever: it displays a crude Japanese-style cartoon animation. (The camera comes with a clown animation; 20 more are available as free downloads.) It’s supposed to capture the attention of younger subjects, so that they face the camera. It works like a charm (except in bright sunlight, where it’s nearly bleached out). Even older children are captivated, if only by the presence of a video screen on a pocket camera. Close-range photos sometimes reveal the telltale off-axis look of a child who was looking at a spot beside the lens, not into it, but it beats calling out, “Tyler! Hey Tyler! Look here! Hey Tyler!” for the 14th time. The little front screen can also display a countdown in self-timer mode, current flash or macro settings, or a smiley face when you press the shutter, to cue your subjects when it’s time to pretend to be happy. The question is: do self-portraits and child shots occur frequently enough to justify the higher price of this camera? (Rival touch-screen cameras cost $50 to $100 less.) Before you answer, there’s more invention in the DualView than just the second screen. The huge, bright touch screen works really well, but what’s new is how you can control this camera, quickly and precisely, by tipping it and drawing on its screen. For example, you draw a big X on a photo to delete it. You draw a circle, clockwise or counterclockwise, to rotate it. In playback mode, you advance to the next picture either by flicking your finger across the screen, iPhone style, or by giving the camera a little shake. Cooler yet, you can switch modes — to movie mode and back, for example — by twitching the camera up, down or left while pressing a button with your thumb. It takes a couple of minutes to master, but it’s a genuine advance in the evolution of gadget controls, and wow, is it cool. Not so cool: in their “reinvent the camera” zeal, Samsung’s engineers adopted a nonstandard way to charge the battery (inside the camera, so you can’t charge a spare while using the camera), a nonstandard, proprietary computer transfer cable, and a decidedly nonstandard memory-card format (MicroSD, more common on cellphones). Whassamatter, Samsung — the SD cards used by every other camera company on earth not good enough for ya? The other radical new camera is Nikon’s CoolPix S1000pj ($430). On most cameras, to show off your photos, you can pass around the tiny screen or connect a TV cable. This one, if you can believe it, has a microprojector built right into its forehead. Last year, microprojectors wowed a lot of people. They’re little iPod-size pocketable gadgets that connect to phones, laptops or iPods to project stills and videos on any handy, light-colored flat surface. Get ready for the dawn of embedded microprojectors in cellphones — and cameras, like this one. When you’re in playback mode, a dedicated button on the top edge of the Nikon turns on a gasp-inducing projected image, which can be as large as 40 inches diagonal, depending on your distance from the wall, ceiling or T-shirt. Now, you’re not exactly going to get complaints from the neighbors; this thing pumps out only 10 lumens of light (compared with 2,000 lumens or more for conference-room laptop projectors). The projected image is only 640 by 480 pixels. The battery lasts for only an hour with the projector on. But you know what? Absolutely nobody cares. The image brightness and clarity are perfectly adequate — especially in a dark room, on a white surface, and when the camera is fairly close. Everyone who sees this stunt is captivated by the possibilities. Whenever you want to show off the pictures or videos on your camera, there’s no need to transfer them to a computer or hunt for the TV cable; just aim the camera, set it on its little stand if you like, and maybe whip out the included remote control. You can take pictures on a camping trip, far from computers or TV sets, and conduct on-the-spot slide shows. Take pictures at a party and immediately show them off. Load up a memory card with PowerPoint slides and carry your sales pitch in your pocket. It’s fantastic. This miracle comes at a price, though. An equivalent camera without the projector costs about half as much. Furthermore, while the Nikon isn’t nearly as big as it appears in photos (it’s roughly the same size as most pocket cameras), it is just as homely. Both of these cameras represent huge high-tech leaps, for sure. Both have mighty zooms (5X or 4.6X), smile and blink detection, superb close-up modes (0.6 inches away), excellent facial recognition and so on. Unfortunately, neither of them takes particularly good pictures. That could be considered a drawback in a camera. As in most CoolPix and Samsung pocket cams, these models have tiny sensors, so blur is a problem in low light or when your subjects are moving. Shutter lag is a huge problem, so sports photography is nearly out of the question. (On the Samsung, the shutter sometimes doesn’t snap until a full second after you’ve pressed the button.) The Samsung’s shots also fall consistently short of crisp sharpness. Still, there are an awful lot of goodies to distract you from the photo quality. Let’s hope that the wow-inducing ingenuity on display here makes its way, eventually, to cameras that take wow-inducing photos.

    High Risk Indicators


    You're just about to make that big trade, you're sure it's going to win big, your heart is pumping and everything is saying "buy." But then the red lights start flashing — from your bracelet. Analysts say that many risky trades could be avoided if only traders were not letting their emotions get the better of them, so Royal Philips Electronics and ABN Amro have teamed up to find a solution. Their answer is a flashing bracelet and natty-looking bowl that detects emotion. The "Rationalizer" consists of an "EmoBracelet" that measures the "arousal component of the user’s emotion through a galvanic skin response sensor," and an "EmoBowl." The higher the trader's arousal level, the more intense the lights on the bracelet and bowl become. When they get really worked up, the color shifts all the way from a yellow to a deep, warning red. When the red lights flash, it could be time to take a walk, or at least think twice before making that trade, the companies said. Whether a big flashing bracelet could add to the tension or not is yet to be seen, however. Philips and ABN Amro started work on the system before the collapse of Lehman Brothers and is aiming it at "serious home investors. "Research shows that home investors do not act purely rationally. Their behavior is influenced by emotions, most notably fear and greed, which can compromise their ability to take an objective, factual stance," the companies said in a statement. Experts are divided on whether emotions play a good or bad role in trading. "It's an interesting idea, but I don't think it's going to be very useful," Louis Gagnon, a professor of finance at Queen's University, told the Financial Post. "Emotion is central to the marketplace," he added.

    AMD's revenue slides 22% to $1.4 billion

    Advanced Micro Devices Inc. (AMD) lost money in the third quarter but said Thursday that sales were stronger than expected, adding to mounting evidence that consumer spending is fueling a turnaround in the personal computer market. AMD sells about 20 percent of the world's computer microprocessors, which are the brains inside PCs. Although AMD was hurt by weak consumer and business spending on computers in the first half of the year, the chipmaker said shipments rose from the previous quarter thanks to strong demand for processors used in laptop computers. That's in line with what PC industry researchers reported earlier this week. The recession has squelched consumer demand for high-end PCs, but they continued to snap up inexpensive laptops and tiny "netbooks" in the third quarter. That pushed PC shipments into positive territory for the first time this year, according to IDC and Gartner Inc. Businesses, however, aren't expected to replace old computers until sometime next year.
    It's not possible to tell from AMD's report whether PC makers were stocking up on chips to replenish low supplies, or because the computer makers expect to see a boom in sales through the holiday season. AMD's larger competitor, Intel Corp., has been more bullish than AMD in predicting a 2009 turnaround for the PC industry since spring. The chipmaker said earlier this week that the year will end with growth in PC sales. Sunnyvale, Calif.-based AMD posted a loss of $128 million, or 18 cents per share, narrower than its year-ago loss. However, the group that makes computer microprocessors reported $76 million in operating income - about half the amount it earned a year ago, but up from a loss of $72 million last quarter. AMD's revenue fell 22 percent to $1.4 billion. Analysts were expecting a steeper 30 percent decline, according to Thomson Reuters. Shares fell 11 cents, or 1.8 percent, to $6.08 in extended trading after the release of results. Earlier, it closed down 6 cents, or 1 percent, at $6.19 in regular trading.

    Pakistan China cooperation to rise in trade, defence


    Pakistan and China will explore further opportunities to strengthen their strategic cooperation in various areas, including trade, defence and energy sectors during meetings of Prime Minister Yousaf Raza Gillani with the top Chinese leadership. Gillani will arrive here Monday (today) on a four-day visit to China, Pakistan Ambassador Masood Khan told a press conference here. He said the primary purpose of the prime minister’s visit is to attend the meeting of the Council of Heads of Government of Shanghai Cooperation Organisation (SCO) that will be held here on October 14. The Pakistani envoy told media that in Beijing, Prime Minister Gilani, in his meetings with President Hu Jintao and Premier Wen Jiabao, would explore the possibility of strengthening Pakistan-China cooperation in the areas of defence, investment, trade and people-to-people relations. Both the countries will examine ways to minimise the adverse impact of the international financial crisis. They would also coordinate their positions on UN reforms, climate change and international trade. A strong bilateral component has also been added to Prime Minister Gillani’s visit, Ambassador Masood Khan said. He pointed out that during his visit, Gillani will meet and hold talks with Premier Wen Jiabao and President Hu Jintao. He will also meet Wu Bangguo, Chairman of the National People’s Congress. He will address the SCO Council of Heads of Government and attend a banquet hosted by Premier Wen Jiabao in honour of the delegates attending the meeting.

    Founded in 2001, SCO is a regional organisation focusing on security, confidence building and economic development. Its members are China, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan. Pakistan, India, Iran and Mongolia are observers. Pakistan is an integral part of the geographical footprints of SCO neighbourhood. We would very much like to be a full member, the Pakistani Ambassador said emphasizing that Prime Minister Gilani’s participation in the SCO meeting in Beijing will give an opportunity to share the challenges Pakistan is facing in countering militancy and terrorism and in bringing stability to the region. Prime Minister Gillani would highlight that regional peace and social stability are prerequisite and essential for economic development and collective prosperity. Pakistan is committed to working towards these goals, Ambassador Khan said. Pakistan supports One China Policy and would continue to oppose any attempts to undermine its unity and territorial integrity. In the recent past, Pakistan had supported China’s policy towards ethnic harmony and social stability in Xinjiang, Ambassador Khan observed. China, he said, has always expressed its full support for Pakistan’s efforts to preserve its sovereignty, independence, and territorial integrity and expressed appreciation for Pakistan’s important role in promoting peace and stability in the region.

    Dollar Versus Pak Rupee


    Almost 40 per cent devaluation of Pak rupee after the much-trumpeted democratic revolution has not only squeezed country's economy but has also tightened the noose around the common person's neck. The high-ups of the ruling and opposition parties after hushing up the issue of sugar prices are now busy in dissecting the Kerry-Lugar bill. Those who have mercilessly ravaged this country are seen these days making uneducated analyses of the bill in TV reality shows. Being generally devoid of economic and financial acumen, none of the democratic stalwarts appear concerned about the implications of Pak rupee's war against the dollar. Even our economic managers and monetary regulators do not seem concerned about the situation. They even can't give a cogent reason for this uncalled for sliding of rupee in the face of an improving economy and a comparatively better reserves position. They fail to explain how the previous government succeeded in keeping the dollar within a narrow band of 58-62 for almost eight years, and that why they are unable to keep the slide of rupee within a reasonable and manageable limit.

    The impact of a weakening rupee on the economy is multi-dimensional with a number of negatives and a few dubious positives. The increased cost of inputs pushes the consumer goods prices to a high that is unmanageable even for the middle class, let alone the lower middle class and below-poverty-line hapless masses. GDP goes up, but so does the external debt liability in rupee terms. Since ours is an import based economy, any benefits enjoyed by the exporters are more than offset by a higher import bill in rupee terms. The higher export proceeds are not in dollar terms. For the exporters too, the gain is not an unmixed blessing; the increased cost of production wipes off most of the gains on proceeds side. The increase in GDP and GNP is not reflected in per capita GNP in dollar terms. During 2008-09, GNP recorded an increase of 29 per cent, but when seen in dollar terms, the per capita GNP showed a marginal increase of 1.2 per cent. Even this increase becomes unreliable when the GNP is measured against the current exchange rate of Rs.83.3 a dollar.

    GNP AND DOLLAR EXCHANGE RATE FOR THE LAST NINE YEARS
    YEARGNP (MILLION
    PAK RUPEES)
    POPULATION
    IN MILLION
    PER CAPITA GNP
    IN PAK RUPEES
    $ EXCHANGE
    RATE
    PER CAPITA
    GNP IN $
    2000-014,155,391140.3629,60558.44507
    2001-024,476,319143.1731,26661.43509
    2002-035,027,460146.7534,26058.50586
    2003-045,765,058149.6538,52457.57669
    2004-056,634,243152.5343,49559.34733
    2005-067,773,106155.3750,03059.86836
    2006-078,830,638158.1755,83060.63921
    2007-0810,494,181160.9765,19362.551,042
    2008-0913,502,906163.7682,45578.241,054
    The export side benefits are dubious because of falling rupee, which propels the input cost to higher levels making the manufacturing business quite expensive and thus leaving little room for product competitiveness in the global markets. Higher import costs bring in import based inflation. Energy shortage is a huge drag on the economy. Limited and expensive options like rental power projects do little to move the industrial wheel. In this scenario, whatever is produced is short on quality and long on production cost. More than halved oil prices have given respite to the economy. The global oil situation is pretty uncertain. The prices can move either way, yet the probability of northwards movement is higher. Unfortunately, we have developed a habit of shrugging off inertia in the midst of a crisis. We are not used to taking timely actions and making anticipatory moves. We got a chance when the oil prices were moving in the band of 32 - 40 dollars a barrel. We could have made use of forward fixed or option contracts to ensure cheaper crude supply for a certain period. But, we were then busy in settling more important political scores and had little time for mundane economic issues. An upward trend in oil prices will magnify our foreign trade distortions to the detriment of an already weak economy.
    FOREIGN TRADE AND CURRENT ACCOUNT POSITION DURING THE LAST FIVE YEARS
    BALANCE OF PAYMENT - US $ MILLION2004-052005-062006-072007-082008-09
    1. Export f.o.b14,40116,38817,11920,20719,212
    2. Import f.o.b18,75324,64726,61435,10231,668
    3. Trade Balance (1-2)(4,352)(8,259)(9,495)(14,895)(12,456)
    4. Services Receipts3,8374,7185,2395,4104,043
    5. Services Payments9,67812,02213,20715,7267,325
    6. Services Net (4-5)(5,841)(7,304)(7,968)(10,316)(3,282)
    7. Workers remittances4,1684,6005,4946,4517,811
    8. Other Income & Private Unrequited Transfers4,2725,3144,6084,597(934)
    9. Total Income & Private Unrequited Transfers (7+8)8,4409,91410,10211,0486,877
    10. Current Account Balance (3+6+9)(1,753)(5,649)(7,361)(14,163)(8,861)
    The most damaged single entity of our economy, in consequence of the rupee free fall triggered mainly by the political upheaval, was the stock market. After touching the 16,000 level, the KSE-100 index breached the 5,000 mark to completely shatter the investor confidence. The common small investors, as usual, were the main casualty; yet the avalanche took some stock bigwigs to the ground as well. Foreign portfolio investment vanished within a short period of one year. The omnipresent political uncertainty still deters the foreign portfolio investment from entering our stock market. The depreciated rupee has, however, started to attract foreign buyers, albeit in a very small way.

    FOREIGN PORTFOLIO INVESTMENT DURING THE LAST FOUR YEARS (MILLION US$)

    FOREIGN PORTFOLIO INVESTMENTFy-06FY-07FY-08FY-09Jul-09Aug-09
    Private3521,82019(510)(4)65

    Public

    6131,46821(544)--