decline in July-Sep foreign invest..

KARACHI : Net foreign investment posted a decline of 28 percent during the first quarter of the current fiscal year, mainly due to low portfolio investment.

The central bank on Friday said that net foreign investment comprising foreign direct investment (FDI) and portfolio investment had continuously weakened and net foreign investment registered a decline of $181 million during the first three months (July-Sep) of fiscal year 2010-11. With current decline, net foreign investment decreased to $455. 1 million during the first quarter of the current fiscal year as compared to $636. 1 million in the same period of last fiscal year 2009. According to statistics, FDI posted a decrease of 9. 5 percent, while major decline was in portfolio investment, which stood at 67. 5 percent during the period. Portfolio investment--mainly done in stock market--stood at $67. 7 million during July-September of fiscal year 2010-11 as against some $208. 2 million in corresponding period of last fiscal year, depicting a decrease of $140. 7 million. FDI posted a decline of $40. 5 million to $387. 4 million in first quarter of current fiscal year as compared to $427. 9 million in same period of last fiscal year. However, there were some indications of improvement in FDI, as during the first two months (July-Aug) decline in FDI was some 40 percent, while currently to has declined to 9. 5 percent. Economists say that despite the uncertainty, foreign investment inflows are higher than expectations and $387. 4 million foreign direct investment during the first three months is also an encouraging figure. Some improvement in FDI is a positive signal and it means that still foreign investors are interested to invest in Pakistan , they said. Meanwhile, including privatisation proceeds total private investment showed a decline of 25. 1 percent to $506. 9 million during July-September of current fiscal year as previously it stood at $676. 5 million.

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Afghan goods for India via Wahgah: APTTA to allow duty-free transit

ISLAMABAD  : Pakistan has agreed to allow duty-free transit facility to Afghanistan for goods destined for India through Wahgah border.The Cabinet recently approved the much-talked about Afghanistan-Pakistan Transit Trade Agreement (APTTA).  No customs duties and taxes shall be levied on goods in transit regardless of their destination, said the APTTA. According to the agreement, exclusively obtained by Business Recorder from the Cabinet Division, which is yet to be signed, the contracting parties (Afghanistan and Pakistan) agree to grant temporary admission to means of transport, used or intended to be used, for the carriage of goods under the customs transit regime through their territories. In particular, motor vehicles (and fuel contained in its standard supply tanks, its lubricants, maintenance supplies and spare parts in reasonable quantities) shall enter the territory of the other contracting parties without payment of import duties and other taxes, subject to the conditions laid down in protocol two (2) to the agreement on  temporary admission or road vehicles for commercial use , provided that no duty/tax credit shall be allowed in respect of goods supplied or services rendered to the vehicles of the other contracting party.  The agreement further says that Pakistan is to construct separate storage facilities for dangerous goods to be imported by Afghanistan at Karachi Port, Port Qasim and Gwadar Port. The shipper will select, according to the needs, the mode and means of transport to be used for traffic in transit within the territory of other contracting parties (countries).  All vehicles will remain within the specified routes of the territory of the other contracting party and to exit the same within specified time.  In case of force majeure or breakdown, accident of vehicle, the time may be extended by the permit issuing authority of the host country.  Export of perishable goods in transit (like fruits and vegetables etc) shall be transported in open trucks or other transport units. Subject to the provisions of the agreement, the contracting parties shall endeavour to facilitate and speed up the transport of perishable goods and to grant a priority regime for border crossing clearance formalities to avoid undue delay. In case of bulk or oversized cargo, which cannot be placed in sealed containers, other means of transport sufficiently secured for customs and transit control purposes shall be used.  Up to 5 percent containers arriving at the port of entry will be subject to examination under the risk management system.  No further inspection is allowed en route unless irregularity is suspected as provided in the revised Kyoto Convention 1999. Each contracting party may levy charges generally applicable for all traffic in the territories of the contracting parties including fees for weighment, scanning and sealing by customs official, toll for the use of roads, bridges, tunnels and parking or those commensurate with the administrative expenses which result from traffic in transit or with the costs of services rendered.  All charges imposed on traffic in transit shall be reasonable and applied in a non-discriminatory manner.
 

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Remittances rise 13. 5pc..

KARACHI: Remittances from overseas Pakistanis continued to show a rising trend as an amount of dollars 2,646. 30 million was received in the first quarter (July-September) of the current fiscal year; showing an increase of dollars 314. 8 million or 13. 50 percent over the same period of the last fiscal year.

According to a statement issued by State Bank of Pakistan (SBP) here on Monday, the inflow of remittances in July-September, 2010 period from UAE, Saudi Arabia, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $621. 28 million, $576. 32 million, $511. 93 million, $312. 73 million, $296. 89 million and $84. 64 million respectively as compared to $504. 01 million, $430. 75 million, $498. 76 million, $323. 87 million, $235. 08 million and $78. 27 million respectively in July-September 2009. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first three months of the current fiscal year amounted to $242. 52 million as against $ 260. 02 million in the same period last year.The monthly average remittances for the July-September 2010 period comes out to $882. 10 million as compared to $777. 17 million during the same corresponding period of the last fiscal year, registering an increase of 13. 5 percent. In September 2010, an amount of $922. 06 million was sent home by overseas Pakistanis, up 14. 38 percent or $115. 94 million, when compared with $806. 12 million received in the same month last year. During last month, remittances from UAE, USA, Saudi Arabia, UK GCC countries (including Bahrain, Kuwait, Qatar and Oman), and EU countries amounted to $231. 70 million, $181. 24 million, $175. 82 million, $103. 03 million, $102. 94 million and $31. 66 million respectively as compared to $179. 84 million, $181. 82 million, $134. 31 million, $86. 59 million, $112. 39 million and $26. 15 million in September 2009. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during September 2010 amounted to $95. 66 million compared with $ 84. 94 million in the same month last year.

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IMF Fails To Find A Solution On Currency War

IMF Fails To Find A Solution On Currency War

U.S. Dollar Trading (USD) plenty of focus surrounding the disappointing September release of Non–Farm Payrolls, which was released at -95K job loss, worse off than the forecasted rise of 1K jobs. Risk aversion played its part causing a rally in the USD before pairing much of its gains later on the session. Unemployment remained steady 9.6% from its previous. In other news the IMF has failed to find a solution to currency imbalances over the weekend, causing a volatile start to the week in Asia. In US share markets, the Dow Jones rose by 0.53%, the NASDAQ was higher by 18.24 points (0.77%) and the S&P rose 0.72%. Optimism that job losses could have been was the major cause for a rebound in wall street.
The Euro (EUR) found selling pressure for the second successive trading day within range of the magical 1.4000 mark. Trading on the Euro was whippy for much of the North American session, with the single currency failing to take a direction shortly after the lackluster payrolls figure. On the data front German Trade balance contracted to 11.7bn, slightly down on forecasts of 12.3bn. The Euro trade with a low of 1.3835 and a high of 1.3983 before ending the session at 1.3922 on Fridays close. The Euro has gained further support in early Asian trade as the IMF has failed to resolve international currency dispute over the weekend, with the market interpreting such development as further reason to sell USD vs. a number of majors.
The Japanese Yen (JPY) closed below previous BoJ intervention levels for the second successive day to trade at a fresh 15 year low. Japanese Finance Minister Noda indicated that further intervention was a distinct possibility to limit further Yen strength in light of recent currency tensions. Overall the USDJPY traded with a low of 81.72 and a high of 82.57 before closing the session at 82.07. Bank Holiday is scheduled in Japan on Monday.
The Sterling (GBP) also traded in a choppy range before ending the week relatively subdued against the USD. The GBP was not aided by comments made by UK Chancellor Osborne, that he would approve an extension of QE if requested by the BoE. Overall the GBP traded at a low of 1.5824 and a high 1.5965 before closing the day at 1.5951.
The Australian Dollar (AUD) was pressured initially following the release of payrolls on Friday as risk aversion saw an outflow from the AUD. On the domestic front RBA Dep. Governor Battelino spoke on the general economic outlook, and indicated that the currency was playing an important role in helping the economy overall, and that inflation was likely to rise to the top of the RBA’s 2-3% target zone. Overall the AUD traded with a low of 0.9711 and a high of 0.9872 before closing the day 0.9861
Oil & Gold (XAU) rebounded well as uncertainty in the US economy remained. XAU rose by US$10.30 an ounce to trade at US$1345.30. Oil also rebounded against a weaker dollar, up by 1.2% to US$82.66

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The Daily Wave Analysis

The Daily Wave Analysis

Currency pair USD/CHF
It is not excluded, that wave formation [a] of 2, differently intermediate term strengthening of US dollar has begun. However, the price finding in border a channel trend, in a combination to an euro and cable Wave Structure, specifies in equiprobable possibility of continuation of a descending trend, after the termination of a certain Corrective Combination.

Currency pair EUR/USD
Presumably, the correctional wave (iv) of [v] of 1 is formed. Probably, it becomes a Corrective Combination or an Expanded Flat in which frameworks the wave b of (iv) at present is formed. If the assumption is true, that after the termination of a correctional wave [b] of b, it is possible to expect short-term growth of pair as an impulse or a Diagonal Triangle [C] of b.

Currency pair GBP/USD.
The working variant of a counting of a formed impulse [v] of A, is changed. Presumably, within the limits of impulse end (iii) of [v], the Diagonal Triangle v of (iii) is formed. If the assumption truly that is possible short-term growth of pair as formation of a wave [5] of v of (iii).

Currency pair USD/JPY.
It is not excluded, that the impulse (v) of [c] of 5 is finished. That in turn, assumes the beginning of intermediate term strengthening of US dollar, within the limits of formation of a correctional wave [4] of v. However, while, it only the assumption which demands a complex of acknowledgement. While they are not present, there is quite real prospect of continuation of descending movement, within the limits of the specified alternative

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Current Gold Rates as on 08 Oct, 2010 10:54:23

US Dollar [per Ounce]	$1334.1
Pak Rupees [per Tola]	Rs.42579.01
Pak Rupees [per 10 grams]	Rs.36522.55

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ForexLive Asian market wrap: China returns bringing good news with it

Shanghai opens +2% after week long holiday China reduces purchases of Japanese debt Japan's current account balance Y1.1 trillion Latest BOJ policy meeting minutes Moody's considers upgrade of Chinese government bonds RBA still upbeat; rates likely to rise at some stage Fairly quiet session ahead of some big risk events in the NFP number and the G7 FinMin meeting. The USD opened the session in a positive mood after some decent rebound gains overnight as short-covering finally kicked in. EUR/USD closed in NY at 1.3925 and tried to break back below 1.3900 but momentum was again lacking. China is said to be defending a major barrier at 1.4000 but is reloading sales from yesterday below 1.3900. Range: 1.3904/62 AUD/USD also tried to break lower after the failure to close above the previous .9850 high but the positive sentiment out of China helped turn session trading around. Ranges: .9793/.9847 USD/JPY has been unable to break outside of overnight ranges and has consolidated in a tight 35 pip range. FinMin Noda returned to the newswires with more talk of intervention but traders do not expect to see the BOJ again pre-G7. Ranges: USD/JPY 82.16/51, EUR/JPY 114.54/89 Cable 1.5861/99, EUR/GBP .8757/83 Markets: Shanghai +3.25%, HK +0.75%, Nikkei, Kospi -0.2%. Gold $1335/oz.

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