Pakistan Economy - News & Updates - Archive

[Owais]

Exports in August totalled at $ 1.507 billion


ISLAMABAD (updated on: September 17, 2006, 02:13 PST): Country's exports were registered at $ 1.507 billion during the month of August showing an increase of 7.6 percent over the corresponding period of last year.

The export also registered an increase of 12 percent over the last month i.e. July 2006 which was $1.348.

The imports in the month of August 2006 was $ 2.525 billion showing an increase of 2.6 percent over the corresponding period of the last year's $ 2.234 billion.

According to the provisional trade figure released here Saturday the balance of trade has reached -$ 1.018 billion in August 2006 from -$1.114 billion in July 2006.

However when compared with the previous month, the balance of trade has come down to -$ 1.018 billion from -$ 1.114 billion in July 2006.

 

[Owais]

Balochistan coast: Minfal recommends ban on poaching by Sindh fishermen


ISLAMABAD (September 17 2006): The Ministry of Food, Agriculture and Livestock (Minfal) has recommended to the government that fishermen of Sindh should be barred from fishing in the designated areas of Balochistan coast.

Sources told Business Recorder that the issue would be discussed by the Inter-Provincial Co-ordination Committee (IPPC) which is scheduled to meet on September 18, under the chairmanship of Federal Inter-Provincial Co-ordination Minister Saleem Saifullah Khan.

The Balochistan government, in its proposal, has stated that illegal fishing by Sindh fishermen in its territorial waters creates problem for the local fishermen and also affects fish bio-diversity.

The fishermen of Balochistan coast, time and again, make hue and cry and demand for stoppage of illegal fishing by these trawlers. Some time they protest and even create law and order situation, the provincial government added.

Sources said the Balochistan Fisheries Department has its own Sea Fisheries Ordinance, 1971, for curbing banned netting and illegal fishing in its area of jurisdiction.

The department has placed orders for the purchase of one wooden boat for patrolling purpose during the current financial year and the government allocated Rs 20 million during financial year 2006-07 for the purchase of two fibreglass-patrolling boats. Moreover, the Balochistan chief minister has also announced Rs 10 million for the purpose.

Sources said the provincial fisheries department is trying its best to stop illegal fishing within its limited resources; however, the assistance of the Sindh government in this respect will be very helpful.

According to the sources, Minfal in its comments admitted that there was a dispute between fishermen of Sindh and Balochistan on use of trawler and Katra net by the Sindh fishermen in the territorial waters of Balochistan.

There is no trawler and 'Katra boats' registered in Balochistan. The fishermen of Balochistan consider these gears to be destructive, thus adamant not to use of these gears in territorial waters of Balochistan.

The Balochistan Coastal Development Authority had previously allowed certain number of fishing boats to operate in the designated areas of Balochistan coast, but still a large number of fishing boats from Sindh poach in the waters of Balochistan. Minfal has recommended to the IPCC that the issue should be settled on permanent basis to avoid any clash in future.

 

[Owais]

SPI up by 10.13 percent

ISLAMABAD (September 17 2006): The Federal Bureau of Statistics (FBS) on Saturday announced the Sensitive Price Indicator (SPI) inflation year-on-year of 53 daily-use items for the week ending on September 14, 2006 has increased by 10.13 percent as compared to the corresponding week of last fiscal.

This double-digit increase in the prices of daily-use items (mostly kitchen) is disturbing the budget of low- and middle-income groups and snatching their purchasing power. The significant feature of the weekly bulletin of FBS released here was that year-on-year rise in the prices of some necessities and kitchen items was exorbitant.

These items were sugar, tomatoes, potatoes, diesel, petrol, kerosene oil, fire wood, gur, LPG, and all kinds of pulses, which hit the low-income group. The bulletin on SPI, based on data collected for about 53 items from 17 centres, showed that 22 items registered increase whereas eight items showed decline while prices of 23 items remained unchanged.

However, further analysis of the data revealed year-on-year basis, 11 items are dearer by double digits. These include gram pulse by 41 percent, liquefied petroleum gas (11kg cylinder) 26 percent; firewood, 22 percent; salt, 21 percent; gur, 19 percent; potatoes, 18 percent; cooked dal, 17 percent; cooked beef, 15 percent; tea (packed) 12 percent; tea (prepared) 11 percent; vegetable ghee, 11 percent; and fresh milk price increased by 11 percent over corresponding week of last fiscal.

The FBS figures further showed that though prices of 23 items posted no change during the week, yet compared to the corresponding week of last year, several items are now costly. For example, natural gas is dearer by 20 percent; mutton, 14 percent; kerosene, 14 percent; diesel, 12 percent; matchbox, 11 percent; and curd price increased by 10 percent.

The bulletin further indicates though the prices of eight items decreased, yet compared to the prices of corresponding week of last year, items which showed increase in their prices were: tomatoes, which is dearer by 148 percent; mash pulse, 57 percent; moong pulse, 46 percent; sugar, 26 percent; bananas, 24 percent and chicken farm increased by 14 percent.

 

[Owais]

Thai help can boost Pakistani gem and jewellery export: Smeda


LAHORE (September 17 2006): The Pakistan's gems and jewellery sector would be able to make an adequate room in the export market by having technological assistance from Thailand.

Small and Medium Enterprise Development Authority (Smeda) CEO Shahab Khawaja stated this while addressing a reception hosted by Smeda and the Pakistan Embassy in Bangkok in honour of the Pakistani delegates and the Thai Association of Gems and Jewellery.

According to a message received from Thailand, Pakistan's Ambassador Lieutenant General Khateer Hussan Khan (Retd) and its Commercial Counsellor Syed Zafar Ali Shah based in Bangkok also spoke on the occasion.

Shahab Khawaja, in his address of welcome, said that Pakistan was rich in raw materials, whereas Thailand had attained excellence in technology and marketing in gems and jewellery industry. The combination of both the potentials can make an incredible progress in the world market, he said, adding that Pakistan, which stands nowhere, at present, in the world business of gems and jewellery would gain an attractive opportunity to increase its exports in this field to an optimal level.

Federal Industries, Production and Special Initiatives Minister Jahangir Khan Tareen's visit to Pakistan Pavilion in the Fair gave a boost to the Pakistani gems and jewellery sector in Bangkok, he added.

Meanwhile, speaking on the occasion, Khateer Hassan Khan gave an overview of Pak-Thai business relations and said that canvass of business activities in Thailand was surprisingly vast, and it can be an attractive market for Pakistan as well to have its due share in the world business.

He appreciated Ministry of Industries and Smeda for developing a comprehensive strategy for gems and jewellery sector with a practical marketing move.

 

[Owais]

Rs 378.4 million allocated for dams in Balochistan


QUETTA (September 17 2006): The government has allocated Rs 378.4 million for construction of different dams in the province, sources told APP here on Saturday. An amount of Rs 25 million has been allocated for construction of Sukkan Delay Action Dam, of which Rs 13.5 million had already been spent, and the government has allocated Rs 1.2 million more in the current fiscal year.

Kolan Delay Action Dam Naal area is being constructed at a cost of 17 million rupees, of which Rs 15 million had already been spent, and the authorities have allocated Rs 2.9 million in the current fiscal year. Sawar Kaur Dam is being constructed at a cost of Rs 100.5 million, of which Rs 68 million had already been spent, and the government has allocated five million rupees for the year 2006-07.

A sum of Rs 28 million has been allocated for construction of Gawal Delay action dam near Kohlu town, of which Rs 17.7 million had been spent, and the government has allocated Rs 4.5 million in the current fiscal year.

Similarly, Rs 64 million has been earmarked for the construction of Akhtar Nikka Delay Action Dam, of which Rs 47 million had been spent, and the authorities have allocated Rs five million for the year 2006-07.

Check dams in Quetta valley are being constructed at a cost of Rs 95 million out, of which Rs 16.8 million had been spent, and five million rupees has been allocated for the current year. Khair Manda Delay Action Dam is to be constructed at a cost of Rs 30.6 million, of which 19.5 million rupees had already been spent, and the government has allocated Rs four million for the current year

 

[Neo]

SINGAPORE, Sept 16: Pakistan is all set to achieve the millennium development goals (MDG) by slashing the poverty level by half from above 30 per cent in the year 2000 to 15 per cent by the year 2015. It will pull hundreds of millions of people out of abject poverty and integrate them into the economic mainstream.

The goals will be achieved by sustaining the current high growth rate in an environment of macroeconomic stability and by investing in physical and human infrastructure to a level that suits the country's needs.

Pakistan's representatives Dr Salman Shah, adviser to the prime minister on economic affairs, and Dr Ashfaque Hasan Khan, adviser to the ministry of finance, made these observations in one of the 10 seminars on the first day programme of seminars 2006 in Singapore.

The seminar on "South Asia ends poverty: How the region with the greatest concentration of poor people can make history" was addressed by a panel of experts and representatives from Pakistan, India and Sri Lanka. The vice-president, South Asia region of the World Bank, was chairing and moderating the seminar.

In reply to a question referring to observations made in the UNDP Asia Pacific Human Development Report (APHDR) 2006, “Trade on Human Terms: Transforming Trade for Human Development in Asia and the Pacific”, regarding the growth in South Asia to be predominantly jobless and to the fact that from a food surplus the region is becoming a net importer of food grains, the panellists expressed their reservations.

Wahiduddin Mahmud, professor of economic at the Dhaka University, said he did not know about the report. Dr Ashfaque said over 5.54 million jobs had been created over the last five years in Pakistan.

The focus of the 2006 meetings is on Asia to quite an extent, as it is believed at the World Bank and the IMF that it deserves to have a bigger voice at the fund and the bank because its contribution to the world economy has grown substantially.

"Today Asia is the most vibrant and dynamic region of the world. The simultaneous rise of India and China is the amazing growth story of this century. It, however, is not an unqualified success, as Asia still faces many challenges and has its shortcomings," observes the bank in one of the reports.

The Programme of Seminars (PoS), the organisers believe, is a fitting forum to share this story. This is the reason why "Asia in the world and world in Asia" is chosen to be the theme of the seminars, informed a representative of the committee responsible for the series of seminars.

The Singapore Institute of Policy Studies co-organised the PoS for the 2006 IMF-World Bank annual meetings.

This is the first time in 10 years that PoS is coming back to Asia to have a special focus on Asia and to benefit from the input of Asian thought leaders.

In all 37 seminars will take place for which 140 speakers are drawn from all over the world. These include outstanding people from the public sector, civil society, academia, international organisations and media.

Ten years ago World Bank President James Wolfenson initiated the PoS as an intellectual forum for an active engagement on issues of common concern and interest. World Bank and IMF current president and managing director Paul Wolfowitz and Rodrigo de Rato convinced of its contribution decided to carry on with this programme.

The organisers describe it as a festival of learning, dialogue and consensus building with the ultimate purpose of building a better world.

http://www.dawn.com/2006/09/17/ebr1.htm

 

[Neo]

17 September 2006

ISLAMABAD — The rate of inflation has touched 9.93 per cent in August this year due to the continuous increase in the house rent and food items over the corresponding month last year thus hitting the low income group.
The inflation measured through consumer price index (CPI) also registered an increase of 1.25 per cent during the August 2006 over July 2006. While the year on year increase in inflation stood at 8.28 per cent in July-August in 2006. When contacted Advisor on Finance Dr Ashfaq Hassan Khan said that the sudden increase in inflation was expected due to heavy rains and flash floods during the last two months.
He said that the supply of food items to major cities disrupted due to which the food inflation rose 11.08 per cent, which had a negative impact on the over all national inflation.
However, he said that the non-food inflation was around 7 per cent during the month under review.
Official statistics, however, showed that the house rent was constantly on rise during the last six months. The house rent rose by 0.42 per cent in March 2006, 0.62 per cent in April 2006, 0.60 per cent in May 2006, 0.52 per cent in June 2006, 0.54 per cent in July 2006 and 0.55 per cent in August 2006 over the previous months.
The government remained silent about this phenomenal increase in the house rent during the period under review, which would have serious implications on the monthly budget of the low income and middle class people.
When the adviser asked for the reasons for this increase in house rent during the period under review, he replied that it was not in his knowledge. The statistics showed that almost all food items registered a growth during the month of August 2006 over the previous month of July 2006. Food and beverages: Onion (16.55 per cent), tomatoes (13.45 per cent), eggs (13.39 per cent), vegetables (8.05per cent), vegetable ghee (4.73 per cent), pulse gram (4.55 per cent), besan (4.12 per cent), fresh fruits (3.91 per cent), chicken farm (3.78 per cent), gur (3.20 per cent), mustard oil (3.10 per cent), tea (2.76 per cent), wheat flour (2.51 per cent), wheat (2.27 per cent), cooking oil (2.06 per cent), pulse moong (1.57 per cent), jam, tomato, pickles & vinegar (1.14 per cent) and sweetmeat & nimco (1.00 per cent). Fuel and lighting: LPG (1.73 per cent); Medicare: Doctor's fee (7.49 per cent).

 

[Neo]

Sunday, September 17, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\09\17\story_17-9-2006_pg5_8

LAHORE: Pakistan International Airlines domestic market share rose from 60.4 percent to 69.3 percent during the first six months of the current year, showing an increase of 15.6 percent over the corresponding period last year.

According to PIA sources here, on international routes also it achieved growth of 11 percent against market growth (from/to) Pakistan of 8.2 percent during the same period.

The sources said that increase was achieved as a result of dedicated efforts of PIA staff, provision of better services to passengers, cost curtailment and other such like initiatives.

During the same period revenue increased to Rs 31.3 billion from Rs 26.9 billion showing increase of 16.4 percent.

The sources said this growth in revenue was achieved despite unprecedented increase in oil prices resulting in hike in expenses on aircraft fuel by 47 percent in 2006 comparing to 2005.

 

[Neo]

QUETTA: Balochistan Governor Owais Ahmed Ghani has said the present government has provided a solid foundation to Balochistan through its development projects and the province is now ready for economic take off.

He was talking to a delegation of Pakistan Administrative Staff College Lahore comprising participants of National Management Course led by Rector National College of Public Policy Lt-Gen Javed Hassan, which called on him here on Saturday.

The governor said the development activities of the present government revolve around common man, which is why the middle class is making rapid progress in the province.

“The development schemes launched in Balochistan during the last five years on a large scale have no precedent in the past history of the province,” he said, adding there are various development projects being currently implemented in the province by the federal government at a total cost of Rs 185 billion.

The governor also informed the delegation about the social, political, economic and geographical backgrounds of the province and the efforts of the government for its development.

 

[Neo]

KARACHI, Sept 16: Data for the fiscal year 2005-06 issued by the State Bank on Saturday showed that monetary growth was 15.18 per cent, which was much higher than the target.

The data issued after a delay of two-and-a-half months also revealed that private sector borrowing was the real cause for pushing up the monetary growth on the higher side.

Credit to the private sector for the whole fiscal year 2005-06 reached Rs401.7 billion as against the target of Rs330 billion, showing an increase of Rs71.7 billion or 21.7 per cent. However, credit to the private sector was lower than the preceding year (2004-05), which figured at Rs437.8 billion.

The private sector credit growth was out of the expectation of analysts, as they believed that the higher interest rate would impact upon the flow of credit and credit growth would remain within the target.

The growth reflects that the credit demand remained high during the whole year. Analysts believe that consumer-based economic activities would continue during the fiscal year 2006-07 despite higher inflation and costly money borrowing.

The data also showed that the government pumped huge money into public sector companies like Wapda, KESC, etc., during the fiscal year 2005-06, which was negative in 2004-05. The government pumped Rs7.663 billion as compared to a negative Rs12.689 billion in the preceding year. Wapda, KESC, PIA, OGDC, PTC and Pak Steel consumed a total credit of Rs4.755 billion during the year, while others consumed the rest.

The government’s budgetary borrowing remained much below the target of Rs120 billion, as only Rs70.950 billion were borrowed during the year.However, the monetary growth represented with a figure of Rs450.147 billion as compared to Rs479.796 billion in the preceding year. Thus the monetary growth reached 15.18 per cent as against the target of 12.81 per cent, but it was lower than the preceding year growth of 19.30 per cent. This increase was 18.5 per cent higher than the target.

Analysts said the high monetary growth was the real cause of higher inflation that had started gaining weight in the current fiscal 2006-07. The two-month figures of inflation were termed alarming, especially the food-led inflation that reached double digit.

“The whole inflation is food-led in the first two months and it may create uncertainty in the country,” said an analyst. He was of the view that the government failed to check price escalation despite its promises in the budget that the price inspection would keep a tight grip on the ‘unwanted’ price hike.

“Clearly the government has been losing grip on its machinery to implement the decisions and avail desirable results,” he said, adding: “Disappointment on mass level could lead to political uncertainty, which would be extremely injurious to the economic growth we have achieved during the political stability prevailing in the country for the last seven years.”

The government had promised to check prices by a two-way strategy. It decided to supply essential items through the network of utility stores and appointed inspectors to check the price hike. Both the decisions look failed, as utility stores are short of the items in demand and the price inspectors were not on the scene.

“The State Bank is also responsible for controlling the inflation but it also looks in trouble because inflation is going higher despite tight monetary policy,” commented a banker.

 

[Neo]

KARACHI, Sept 16: UAE Consul General Suhail Matar Saeed Al-Ketbi on Saturday called on Sindh Chief Minister Dr Arbab Ghulam Rahim and discussed with him investment opportunities in the province.

During the meeting, the chief minister apprised the UAE consul general about investment potential in agro-based industries, the establishment of modern cold storages besides potential for value addition in fruits and vegetables for making juice, pulp, concentrates of mango, kinno, peach, banana, melon etc especially for exports to the Middle East.

The chief minister informed the diplomat about shortage of low cost houses and said one million houses are needed immediately.

He assured full support of the Sindh government if any investor comes forward and shows interest in this sector.

He also referred to potential in tourism industry and cited old civilization of Moenjodaro, Gorakh Hill, development of 75 km costal belt with construction of sea resorts at Hawkesbay and Sandspit etc, besides Thar desert safari which, he said, can attract the interest of the potential investors.

 

[Neo]

SIALKOT, Sept 16: Exports from Sialkot have increased to $1 billion from $850 million by virtue of the effective trade policies of the government.

Punjab Industries Minister Muhammad Ajmal Cheema said this while talking to newsmen here on Saturday. District nazim Muhammad Akmal Cheema was also present.

The minister urged the exporters to focus on diversification of traditional to non-traditional items and exploring new world markets.

Ajmal Cheema said the chief minister had released Rs12 billion for construction of the Rs20 billion Sialkot-Lahore motorway project. He said work on the project had been started and would complete by the end of 2007.

He said the Punjab government would soon establish two new small industrial estates near Pasrur and Kamoki along the Sialkot-Lahore motorway.

CABLE OPERATORS: The district government has failed to prevent cable operators from airing anti-Pakistan Indian movies in bordering villages.

Talking to this correspondent, local leader Pir Anwar Shah Qalandar and people of Oora, Khuraney, Nandipur, Sabzpeer, Nandipur, Kingra, Bajra Garhi, Umraanwali and Harpal complained that cable operators were continuously telecasting Indian obscene and anti-Pakistan movies through their illegal channels.

Meanwhile, a group of residents said the authorities concerned have failed to remove the prolonged fault in PTV’s booster near Pasrur.

BORDER AREAS: The chief minister has released special development fund of Rs3 billion to the district government for the uplift of border areas of Chawinda and Pasrur along the Sialkot Working Boundary.

Punjab Minister for Labour and Human Resources Syed Akhtar Hussain Rizvi and District Nazim Akmal Cheema, during a visit to Pindi Baagho, Pasrur tehsil, on Saturday, said the government would soon establish four new degree colleges, three inter colleges in Pasrur’s border areas, besides upgrading more than 100 government educational institutions and establishing a stadium.

 

[Neo]

Friday September 15, 2006

KARACHI: The Institute of Environmental Studies, University of Karachi, has built a model solar energy park, which is the first of its kind in the country. The park will be inaugurated on September 20.

Dr Moazzam Ali Khan, In charge of the institute, said this while talking to the scribe in his office on Thursday. The solar park has a room, kitchen and washroom, all operated through the solar energy. It has solar lights, solar cooker, geyser, solar fountain, sterling energy model, a desalination plant to clean brackish water and steam generation model. According to Dr Khan, only Pakistan, United States and Israel have this technology.

He said that the park was constructed after a fruitful liaison between the university and industry.

He was very enthusiastic because, in his opinion, it was a great breakthrough in solar energy generation in Pakistan. Dr Moazzam said “We need alternative energy sources and the wind and solar energy are the answer. Now that we have the practical model, it will be used for classic teaching”. Describing the details, he said that the solar panels in the park absorb solar energy and it is stored in dry batteries. The resultant energy is supplied in the form of DC current.

 

[Owais]

No ADB soft loans for water projects


ISLAMABAD (September 18 2006): Pakistan is likely to be deprived of Ordinary Capital Resources (OCR) loans, commonly known as soft-term loans, being extended by the Asian Development Bank (ADB), sources in the Ministry of Water and Power told Business Recorder.

Pakistan was receiving soft loans from the ADB for the ongoing water sector projects like Second Flood Protection Program, National Drainage Program (NDP) and Chashma Right Bank Canal (CBRC) on 3 to 5 percent interest, but now the Asian Bank is not ready to extend loans on the same interest rate.

"The Asian Development Bank is now shifting from the category of soft to hard or commercial loan and we have asked the government to take a policy decision for future strategy," the sources added.

Sources said the issue has been discussed at a meeting with the consultative mission of the ADB, which visited Pakistan from August 29 to September 10 to review and discuss its lending and non-lending program 2007-09.

According to the portfolio of the lending from 2006 to 2009, the ADB has not listed any federal water sector project and the government took up the issue with the ADB team and proposed that a project with the nomenclature of 'water sector infrastructure development' for construction of large water reservoirs may be included in the pipeline projects, the sources maintained.

The non-lending assistance of the ADB for the water sector generally at the federal level, provided for the establishment of secretariat of National Water Council (NWC), strengthen institutional framework and building capacity for strategic planning and policy analysis to improve the development and management of water resources.

Replying to a question on NDP, the sources said that on the directions of GoP, some loan proceeds were diverted to DERA, CRBC and Pat Feeder by the World Bank and the ADB, respectively in 1999-2000.

"The ADB has also diverted $25 million from the NDP to Earthquake Reconstruction and Rehabilitation Authority (Erra) at the request of GoP during 2006," the sources added.

The Ministry of Water and Power has recently turned down ADB's revised Terms of References (ToRs) on institutional framework, except National Water Council (NWC), saying that the proposed amendments were not in line with the ToRs of the study.

One of the objectives of the Technical Assistance of the ADB was to document and assess irrigation rehabilitation and institutional reform experience accomplished under the NDP in order to guide the bank.

The ministry is of the view that institutional reforms could not be undertaken as per the approved schedule due to a number of reasons.

"The effects of institutional reforms may be accruing after three to four years and any assessment of success is premature and may lead donor agencies to a wrong direction," the sources quoted the ministry as saying.

 

[Owais]

Pakistan backs IMF voting reform package


SINGAPORE (September 18 2006): Pakistan has voted in favour of the reform package tabled to increase the voting power and influence of developing countries in the International Monetary Fund. The adoption of package of reforms increases the votes of four countries - China, South Korea, Mexico and Turkey - and commits the Fund to a broader review of how to allocate voting power in future.

The IMF Board started the reform process at its August 31 meeting in Washington, where it recommended ad hoc increases in quotas of four countries and agreed to come up with a new formula by next year's annual meetings to ensure that developing countries' quotas would not be further eroded and not to make additional ad hoc changes before the major overhand.

Pakistan's representative on the Board, Abbas Mirakhor (Iran) along with other executive directors from sub-Saharan Africa had threatened to oppose the package outright, backed off from a 'no vote' on the board after receiving the pledge that the future formula would not erode developing countries' quotas.

The reforms are part of the Fund's plan to regain its credibility in the developing world, where it has been criticised for being overly influenced by the developed nations.

Breaking ranks with other developing nations, India, Argentina, Brazil and Egypt have opposed the package as they fear that the second stage of the adjustments "may not happen". In a joint statement, they said that increasing the legitimacy of the Fund requires increasing the voting power of developing countries rather than reducing them as a group. Fears have arisen due to European countries' refusal to back the US pledge not to seek an increase in its quota and votes be computed according to gross domestic product.

State Bank of Pakistan Governor Dr Shamshad Akhtar did not anticipate difficulty in getting the reform package adopted, as 85 percent of the votes have been obtained.

Talking to reporters, she said that having taken one step together, trying to satisfy developing countries that are under-represented, and advance countries that are also under-represented, is not an easy task. The developed countries already have a voice in the international financial system and, whatever the size of their vote, will always have a voice just their size and political and economic significance. The challenge for them is to exhibit a level of maturity on future principles.

After the adoption of the package, on Monday, Pakistan's vote size will be shaved off marginally. However, its quota for availing emerging relief of SDR 1.1 billion will remain unchanged.

IMF's 184 members are given voting rights, called 'quotas', based on their size of their economies and reserves, as well as their openness to trade and capital flows. United States of America has effective veto power, with 17 percent of the votes. Small European countries, such as Belgium, have more voting power than larger developing countries, like South Korea and Mexico.

The second stage involves a significant change in the Fund's governance to overhaul the formula to calculate voting rights, followed by a second round of hikes for developing countries. There will also be an increase in 'basic votes' which are the votes all countries get, irrespective of economic size. This is expected to help the poorest countries whose economies have grown relatively slowly.