31 May 2004 Monday 11 Rabi-us-Saani 1425 Analyzing NFC award from a different perspective The National Finance Commission (NFC) Award is basically a resource distribution arrangement in which part of the revenues generated by the federal government is distributed among the provinces in terms of evolving criteria. ... An investment-oriented tax policy The current business environment is marked by improved corporate profits and savings, much higher rates of industrial capacity utilization and rising capital spending on strengthening of existing businesses. ... Questions raised about PIA's Boeing deal Major purchase deals with international organizations involving high finances in foreign exchange have become a tricky and distrusted proposition in Pakistan; hardly a deal is signed that does not raise dust. ... After selling free oil at peak prices, some relief? Having sold the oil it got free through the Saudi Oil Facility (SOF) since 1998 at top prices to the people of Pakistan, is the government belatedly trying to make up for that by selling oil less expensively from now on? ... Oil: what matters in market of politics? May 2004 saw an upturn in oil prices in international markets. On Friday 21st May, West taxes for crude (WTI) touched a 21 years record high of $41.85. The major consumers of oil, the seven rich western nations calls Opec ... Education: primary or higher or both? A pet textbook prescription in development economics is that third world countries should channelize resources towards primary education instead of towards higher level education as the social returns from primary education are higher than those from higher level education. ... Industrial policy & new challenges The federal Minister for Industries and Production has, according to press reports, asked the ministry to formulate a National Industrial Policy (NIP) covering all the potential sectors for foreign and domestic investment within two months. ... Polemic of macro economic stability We hear and read one statement or the other from our managers of the economy about their success stories. There was 5.1 per cent growth in GDP; current account deficit had been turned into a surplus to the extent of $3 billion; foreign exchange reserves had soared to $12 billion mark; ... BD: ADP allocation remains unused In a recent publication, the World Bank provided an upbeat account of Bangladesh development scenario and past achievements. The publication, Bangladesh: Development Policy Review made public early this year, says: ... Auto industry has great potential for growth Engineering industry forms about 61 per cent of the world trade; of this automotive industry is about 13.5 per cent. It is thus a very sizable chunk at 8.2 per cent of the world trade (higher than textile at 6 per cent). ... Poverty alleviation: Indo-Pakistan experience The Congress Party and its allies scored a convincing victory over the BJP and its allies which ruled the country for almost a decade. A host of reasons are being adduced to the defeat of the BJP. ... Wheat crisis is man-made The existing wheat crisis is mostly manmade and partly caused by Nature. The country has been importing wheat for the last 47 years due to mismanagement by agriculture managers. ... Modarabas in the service of farm sector A mosaic of financial products has emerged out of the abundant flow of funds but the financial sector is hesitant to enter into the agri-based market. ... IMF's exit strategy and rural poverty The government seems well prepared and confident on the IMF's disengagement plan by the end of 2004. The proposed framework of exit strategy which may form the basis of next budget ... Ravages, blessings of dry spell Success or failure of farming is intimately related to the prevalent weather conditions. Weather assumes significance in nearly every phase of agricultural activity - from the preparatory tillage to harvesting and the storage. ... Upcoming budget, not bears and bulls, rules bourses Stocks after turning erratic last week, at last found a direction aided by an unprecedented buying euphoria in cement, which went close to risk levels. ...

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