Govt borrows 155 pc more from banks

The government has borrowed 155 percent more only in five months than a target set for the whole year. The budget target was 166 billion rupees but loans of 418 billion rupees have been taken by the government.

According to SBP report, Govt loans from central bank stand at Rs 336 billion and it took Rs 82 billion from other banks. While in the same period, private sector got loans of Rs 70.86 billion.

Tendulkar rejects liquor endorsement offer

Indian cricketing legend Sachin Tendulkar has refused a huge offer of 20 billion rupees to endorse a liquor brand.
Sachin Tendulkar had always been modeling for TV advertisements but he refused to endorse a liquor brand. It is also known that this company offered him as much as 20 billion rupees per year for the endorsement. Sachin Tendulkar said that for him, money does not have value; rather respectable fame is everything for him. While on the other side Mahendra Singh Dhoni recently signed for a three-year deal with Vijay Mallya’s UB Group, which is worth 26 billion rupees.

PIA seeks state bail out to survive

ISLAMABAD: Ailing state carrier Pakistan International Airlines (PIA) is asking the government, saddled with its own mounting debt, to write off losses of 1.7 billion dollars to save it from looming bankruptcy.

In a five-year survival plan submitted to the government, PIA has promised to make cutbacks and better its fleet in a bid to improve its fortunes, if the treasury agrees to cancel its debt and pay off other creditors.

Blaming “bad policies of the past” for accumulated losses of 80 billion rupees (936 million dollars) and liabilities of 144 billion rupees, PIA spokesman Sultan Hassan insisted the airline is capable of future success.

Defending the company against long-standing allegations of graft and staffing problems, he told AFP that operational profits show PIA can become self reliant.

“We want to reform the airline. If the government helps

Obamas visit to India will cost 9 bn rupees per day

US President Barack Obamas three day trip to India will cost 9 billion rupees per day; where as tomorrow a cost of 27 billion rupees will incur.

US President Barack Obama will reach Mumbai today on a three day official visit. Obama will be accompanied by 250 chief executives of US companies, 150 journalists, security staff of around 1500 persons, 30 sniffer dogs, a US marine warship, 3 US marine helicopters, and 4 limousines. This is the first visit of any US President which is incurring such immense cost. Not a single boat will be allowed in Mumbai from 5th November and whole of Taj Hotel in Mumbai has been booked for the US President. During his stay in Delhi, 440 rooms have also been booked in De Moria five star hotel.

SBP injects 9 billion in money market

The State Bank of Pakistan (SBP) has injected 9.70 billion rupees in the money market to fill the investment gap, Dunya News reported on Friday.
The central bank provided the money by purchasing treasury papers through open market operations. 12.27% annual interest rate would be charged by the bank on the money provided.
On the other hand money market dealers had offered treasury papers worth 20.40 billion rupees for the open market operations.

Receivables exceed 152 billion rupees: PSO

Pakistan State Oil has said that PSOs receivables have exceeded 152 billion rupees out of which 80 percent is immediately payable by the borrowers after the credit limit has expired, Dunya News reported on Thursday.
According to the statistics provided by the spokesman of PSO, receivables on the part of WAPDA are 53 billion in volume out of which 38 billion rupees have exceeded their credit limit. Similarly HUBCO has to give 61 billion rupees to PSO whereas KEPCO has to give 25 billion rupees immediately. Due to these deferred payments to PSO, severe difficulties are being faced for the payments of oil imports and payments to the oil refineries.

PML-N stages walk-out against Employees Restoration Bill

Though both PPP and PML-N were on the same page against Musharraf but they failed to agree on Employees Restoration Bill. PML-N staged a walk-out from the National Assembly against the Employees Restoration Bill and announced that it will not participate in the coming sessions of the Assembly.
On the other hand, PM Yousaf Raza Gilani said that the bill was approved with complete consensus. He also congratulated the nation on the approval.
Opposition Leader in the National Assembly Chaudhry Nisar Ali Khan said that the PML-N members would participate in the next session after formulating a strategy. He also said that the approved bill was controversial and it was decided that the bill would not be brought in the House but PPP backtracked.
He said that the approval of the bill would have an additional fiscal burden of 17 billion rupees on our economy. He further said that 80percent of CoD has been implemented.

A Minute With Aamir Khan and his Midas touch

MUMBAI: One of India’s most popular actors, Aamir Khan, is considered Bollywood’s man with the Midas touch.

The 45-year-old actor was last seen in the 2009 comedy ”

Idiots”, India’s biggest blockbuster to date, with 4 billion rupees ($85.6 million) in box-office takings.

For his latest project, Khan turned producer for a low-budget film on the growing urban-rural divide in India.

“Peepli (Live)” released in August to rave reviews, with Prime Minister Manmohan Singh requesting a special screening. The film opens in the UK on Sept 24.

Khan spoke to Reuters about the importance of international audiences, the star system in Bollywood and why he isn’t interested in crossing over to the West.

Q: Your film “Peepli (Live)” is being released in the UK. As an Indian producer, how important are international audiences for you?

A: “It

Asian shares rise as Japan eases monetary policy

TOKYO: Asian stocks markets advanced Monday, with Japan”s benchmark jumping more than 3 percent after the central bank called an emergency policy board meeting.

The Nikkei 225 stock average surged 274.33 points, or 3.1 percent, to 9,265.39 in the morning session on news of the meeting. The Bank of Japan later announced it would ease monetary policy by expanding a low-interest loan program for financial institutions to 30 trillion yen ($355 billion) from 20 trillion yen.

The central bank has been under growing political pressure to take action on the strong yen, which is undermining a faltering economic recovery.

The dollar rose against the yen and triggered buying in exporter stocks. Honda Motor Co. rose 3.5 percent, and Canon Inc. added 3.7 percent.

Later in the day, Prime Minister Naoto Kan is also expected to announce a framework for additional stimulus measures.

Elsewhere, South Korea”s Kospi rose 1.5 percent to 1,755.29 and the Shanghai Composite index added 1.5 percent to 2,648.57. Australia”s SP/ASX 200 gained 1.6 percent to 4,439.10 as commodity stocks posted healthy gains. Australian miner Rio Tinto Ltd. was up 2.5 percent.

Sentiment around the region was also bolstered by big gains in New York Friday.

The Dow Jones industrial average rose 1.7 percent to close at 10,150.65 after Federal Reserve Chairman Ben Bernanke said the central bank was ready to step in if the U.S. economy showed further signs of weakening.

The Standard Poor”s 500 Index rose 1.7 percent to 1,064.59, and the Nasdaq composite index rose 1.6 percent, to 2,153.63.

In currencies, the dollar rose to 85.40 yen from 85.21 yen late Friday. The euro fell to $1.2744 from $1.2761.

Benchmark crude for October delivery was up 13 cents at $75.30 a barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $1.81 to settle at $75.17 per barrel on Friday.

Index ends down; rupee weaker; o/n rates up

KARACHI: Pakistani stocks ended at a two-and-a-half month low on Monday in dull trade as investors sold on worry about the economic costs of a month of flooding.

Most investors were also on the sidelines as they awaited the outcome of talks between the International Monetary Fund (IMF) and the government, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.86 percent, or 82.29 points, lower at 9,516.42 on turnover of 36.63 million shares.

“Rising economic uncertainty over flood losses was the main reason for the selling pressure,” an investment analyst said.

The KSE-index has lost 8.8 percent since the floods were triggered by unusually heavy monsoon rain at the end of July.

In the currency market, the rupee ended weaker at 85.63/68 to the dollar compared with Friday”s close of 85.60/65 amid higher import payments.

Dealers said the rupee would be range-bound in the short-term but expected pressure in the medium-term.

The rupee fell to a record low of 85.80 on July 12 amid high demand for dollars from importers as well as on debt repayments.

In the money market, overnight rates rose to 12.50 percent, compared with Friday”s close of between 12 percent and 12.20 percent. Dealers said the next scheduled inflows were due on Friday amounting to 32 billion rupees ($373.7 million).

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