26 January 2004 Monday 03 Zilhaj 1424 Cheap credit creating grave distortions The State Bank of Pakistan has embarked upon a policy of cheap credit, which is a complete reversal of interest rate reform as an important element of financial sector reform ... Brave new world for investment banks Are the familiar but largely ineffective investment banks going to be the new engine of economic growth in Pakistan and vehicle for regional economic cooperation? ... Earthquakes and Iran's priorities With the perishing of tens of thousands of human beings in Bam's quake on December 26, 2003, concerns for the safety of Iranian people have transcended the Iran's national boundaries. ... Price hike: government's inept attitude It has always been an avowed policy of all governments to contain the inflationary trend. The present government has been of the view that 'maintaining the low and stable inflation should be seen as a necessary part of the poverty alleviation strategy' ... Inefficient working in Pakistani markets Free market concept allows firms to decide how much, when, how to, and what should be produced, etc. However, price is determined by the market forces of demand and supply. ... Worsening job market in South Asia South Asian labour force is fast increasing, adding to the already bad unemployment and poverty situation, and worsening the job market. In order to maintain the robust South Asian growth that was witnessed in the recent past ... Telecom and IT sectors need policy reforms The last few years have witnessed substantial growth in the telecom and IT sectors. The continuous development of the sectors has necessitated legal and policy reforms. ... Internet: demand and pricing The Internet is continuously sprouting as it is becoming available to a wider range of users. The evolution of Internet as a major source of commercial, financial and entertainment portal during mid '90s emerged as a global phenomenon that changed the entire discipline. ... NWFP government and donors' conditionalities The international monitory agencies' bashing appears to be no more on the agenda of the ruling coalition in the NWFP . Gone are the days when leaders of these parties were used to oppose seeking financial assistance from the international lending agencies. ... Safta: a late starter The South Asia Free Trade Agreement (Safta) is a landmark decision taken during the Saarc summit. However, it's success is conditioned by a series of follow-up measures and adoption of multiple instruments of liberalization on preferential basis. ... Desalination plants must for Karachi Water is source of life and time is not far off when all easily accessible sweet water sources would diminish. Non-availability of clean drinking water is becoming a critical issue in many parts of the world ... Henna cultivation The henna plant (Lawsonia Alba) is a heavily scented evergreen shrub of about six meters in height and bears narrow pointed leaves with clusters of small white or pink flowers and blue berries. ... Bt crops: shall we miss the bus? Plant biotechnology is helping today to provide people with more and better crops and holds even a greater promise for the future. Green revolution farming methods are coming to an end with declining yields due to environmental and soil degradation ... Up goes index to touch target of 4,800 points The KSE 100-share index is steadily rising to its next target of 4,800 points. Bulls are not inclined to leave the arena at a time when all basic fundamentals are bullish, and point towards a sustained run-up - after technical consolidations here and there. ... Weakening euro allows rupee to gain The rupee-dollar parity remained range-bound in the local currency market during this week. On the week's opening day (January 19), the rupee inched up with one paisa in interbank market against the dollar ... OMOs secure Rs37.5bn On January 22, the State Bank of Pakistan, in an open market operation, picked up Rs37.5 billion from a fairly liquid interbank market through one week and four-week repo of the Treasury bills. ...

© The DAWN Group of Newspapers, 2004