19 January 2004 Monday 26 Ziqa'ad 1424 Drags in weak fiscal federalism Weak fiscal federalism is a major snag in quickening the pace of economic development and ineffective accountability with erratic cash flows serving as a drag on timely project execution, particularly in Sindh. ... Diaspora and development One of the more benign and virtuous aspects of globalization in the past three decades or so has been the increase in the migration of people from the poorer, labour-surplus economies of the South to the richer ... Where are the visionaries?: Banking The foggy January morning heralding 2004 characterized the sort of vision we suffer from, especially those managing the country's economy. That is why developments in the past two years didn't trigger as much innovation and strengthening of the business support infrastructure ... KNBP needs speedy progress On 13 December 2003, the President inspected the various ongoing development projects in Karachi to review the progress. He gave instructions to the National Highway Authority (NHA) to speed up the work on the Karachi Northern Bypass Project ... Diagnostics of savings: India vs Pakistan Savings provide the most important economic link between the past, present and future of a country. The stock of savings of a nation sets a limit on the level of its gross investment and its growth rate. ... Doha process unlikely to be revived The World Trade Organization (WTO) is still reeling under the impact of the Cancun debacle and has failed to make any tangible headway in the negotiations held since then on any issue. ... Bitter battles of big businessmen Will the bitter controversy over the presidentship of the Federation of Chambers of Commerce and Industry which has moved from the portals of its faction-ridden leaders, to the High Courts of Sindh and Lahore ... Can Safta lead to a South Asian economic union? Can the South Asian Free Trade Agreement lead to an economic union? By all counts, and indications, such a union is still a distant dream. But, by signing Safta did the region's top leadership take the first step towards it? ... Misuse of flags of convenience After having noticed a rise in sub-standard shipping, the Organization for Economic Cooperation and Development (OECD) has observed that as long as sub-standard ship operators get away with breaking the rules and make money and gain market share by doing so, the reputable national flags are bound to decline. ... China on way to capture foreign markets While in China, I could not help but acknowledge the beauty of its economic system: a great combination of communist achievements and the creeping capitalism. From Hong Kong to the mainland Shanghai and from Beijing to the vast countryside, one can see China's corporate life on the move. ... Recurring onion shortages Debate over the failure in producing enough wheat to feed the population by a primarily agricultural country has hardly been ended, when press reports on onion imports to overcome the existing shortages, trickled in. ... Outsiders in trade unions Employers have always been agitating against the law allowing participation of outside labour leaders in a trade union's executive to the extent of 25 per cent. ... Armyworm's threat During the Kharif-2003 season cotton crop, which is considered as the backbone of our economy, was invaded by the insect pests, especially the armyworm both in Sindh and southern Punjab. ... Wheat import: will the govt come out of hibernation? Alarm bells had rung about wheat output last year but they were not on time and rather weak as well. Dawn was possibly the only newspaper that reported a scuttled produce and predicted that the country would be resorting to import of wheat ... Index may prove steeper this year Previous records were battered and some new ones established on the Karachi Stock Exchange during the last week. Investors were not inclined, even to take a technical breather in an overbought market. ... Euro scores on global, local fronts An upward trend in the rupee-dollar parity was noticed in the inter-bank market this week. The rupee shrugged off its previous weekend's bearish trend versus the dollar on the opening day ... Notes in circulation, issued depict upward tendency According to the State Bank's Statement of Affairs, for the week ending January 10, 2004, both notes in circulation and issued increased in the week under review. ... Pulses take commodities on to higher periphery Prices of most of the essential items on the Karachi wholesale commodity markets, last week, rose across the board. This was followed by the reports of pressure on ready supplies owing to slow arrivals from the upcountry market. ...

© The DAWN Group of Newspapers, 2004