Pakistan Economy - News & Updates - Archive

[Omar1984]

Govt mulls ending cross-subsidy on gas

Step to help reduce cost of doing business for textile

Saturday, February 14, 2009
By Shahid Shah

KARACHI: In order to cut the cost of doing business for the textile sector, the federal government is considering a proposal to end 12.5 per cent cross-subsidy on gas given to the fertiliser sector, an official said.

Dr Mirza Ikhtiar Baig, Federal Adviser on Textile Industry told The News that the federal government had agreed to waive the cross-subsidy, which would provide benefit to the textile industry as well. “Government has to provide a level-playing field to the textile industry. Cross-subsidy of 12.5 per cent would be removed. Thus, gas prices for the textile industry would come down,” he said.

The cross-subsidy is provided to the fertiliser sector, while the cost of gas is distributed among other sectors, which increase their utility bills.

Dr Baig said the textile industry’s cost of doing business had increased manifold over a period of several years with an increase in mark-up rates, energy prices, raw material and wages.

Pakistan’s textile sector was nearly 10 to 15 per cent behind other regional competitors including India, Bangladesh and China, he said, who provided research and development (R&D) support to the sector.

Pakistan’s government rolled back the R&D support this financial year, which increased the cost of doing business here.

Feroze Alam Lari, Chairman Towel Manufacturers Association of Pakistan said the cost of doing business has also increased because of increase in utility charges manifold in spite of the act that prices of oil are declining in international markets day by day which needed immediate transfer.

He said that R&D claims shipped up to June 30, 2008 be released immediately, pending sales tax refunds be released, duty drawback claims be released and financial issues relating to commercial banks and state bank of Pakistan be resolved to make the business easy for the sector.

The textile and allied industry, in the present political and economical scenario of present Government, is passing through its worst age, particularly after withdrawal of Research and Development (R&D) support. “In the absence of this support, at least 30 percent Textile and made-up industry has faced closure leaving behind a large number of workers jobless,” said Lari.

He said 90 percent of industry was already operating in one shift instead of three shifts previously which could be easily verified from energy consumption.

“Due to this situation, thousands of workers either have been laid off or are in a queue of lay off,” he added.

Pakistan has the most efficient and high technology textile industry, particularly home textile, in South Asia and places its better quality products before the world market compared to neighboring competitors and surrounding region but on the contrary withdrawal of R&D support after 25th June last year, “it is crawling and if serious action is not taken from the Government in the context of release of R&D, it would die its own death, which would be the death of country’s exports since textile industry and its export is not only our major foreign exchange earner, but also a labour intensive industry,” Lari said.

Although the Government claims that exports are zero rated in the country, but fact is that there is 9 percent indirect, direct and other levies on exports resultantly the cost of doing business is now increasing day by day subsequently in the scenario of international economic crisis.

Govt mulls ending cross-subsidy on gas

 

[Neo]

Pakistan seeking increased aid from IMF​

(RTTNews) - Pakistan is seeking an enhancement in the International Monetary Fund's (IMF) already approved loan of $7.6 billion.

The Pakistan Prime Minister's finance advisor Shaukat Tarin disclosed this on the eve of talks between Islamabad and IMF in Dubai.

"Keeping in view our good performance where we have achieved all targets set by the IMF, Pakistan deserves an increased aid," he told reporters in Islamabad on Friday. However, he added that it's up to the IMF to accept the request for increasing it to $12.1 billion."

The IMF approved a loan of $7.6 billion in November to save the South Asian country from a default on external payments, disbursing $3.1 billion immediately.

The global monetary agency stipulated a set of conditions for the release of the rest of the loan. It requires Islamabad to fulfill the IMF's envisioned targets of reducing the deficit and State Bank of Pakistan's financing of the government, among other tight fiscal and monetary measures.

In Dubai, officials of Pakistani government and the IMF will review financial targets set for the country to qualify for the second installment of $775 million.

Tarin said that the fiscal deficit was controlled at 1.9 per cent of the gross domestic product (GDP) against the set target of two per cent for the first half period of the fiscal year 2008-09.

 

[Omar1984]

SECP relaxes condition

Saturday, February 14, 2009
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has granted relaxation in accounting treatment for equity securities held by the companies under the head “Available for Sale” as required under International Accounting Standard Financial Instrument: Recognition and Measurement (IAS 39).

This step has been taken by the commission, in exercise of powers conferred under the Companies Ordinance, 1984 and Securities and Exchange Commission of Pakistan Act, 1997 through SRO 150 (I) 2009 dated February 13, 2009, has granted relaxation, says a statement issued here on Friday.

This relaxation is valid till December 31, 2009 and has been granted in the light of representations from various stakeholders including the Mutual Funds Association of Pakistan (MUFAP), Insurance Association of Pakistan (IAP), Pakistan Banking Association (PBA), Leasing Association of Pakistan, Modaraba Association of Pakistan, Karachi Stock Exchange and the corporate sector.


SECP relaxes condition

 

[Omar1984]

KSE recovers following SECP’s relaxation in accounting treatment


Saturday, February 14, 2009
By Salman Siddiqui

KARACHI: Relaxation from market regulators on ‘accounting standards’ in accordance with the local demand helped the Karachi bourse bounce back on Friday.

KSE 100-share index posted a notable recovery of 226.54 points or 4.20 per cent and closed at 5,625.90 points. Its junior partner, the 30-share index, rose by 283.26 points or 5.25 per cent and concluded at 5,681.89 points.

Analysts said the notifications from the Securities & Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP) to allow companies listed at the local bourses to show impairment-losses on bourses in ‘equity held for sale’ instead of showing them in ‘net profit & loss accounts’ for one year period revived positive sentiments.

The notification helped turn the stock market indicators into positive, as the day turnover, positive closing stocks, market capitalisation and indices-points; all turned higher. Trading activity jumped up by 81 per cent to 162.430 million shares on the ready market as compared to 89.798 million shares changed hands a day earlier. However, no activity was seen in the future market as usual. The overall market capitalisation increased by Rs66 billion and stands at Rs1,766 billion as compared to Rs1,700 billion yesterday. Moreover, out of total 267 actives, the number of positive closing companies stands at 203 against 43 fell in red regions, while the value of 21 stocks closed unchanged.

Ahsan Mehanti at Shahzad Chamdia Securities said intense buying was witnessed following the SECP relaxed treatment for impairment of capital losses & its direct change to equity instead of profit & loss account. Investors sentiment remained positive throughout the trading session as the improved profitability is likely to be witnessed after amendment made by the SECP, he added.

Hasnain Asghar Ali at Aziz Fidahusein said in a response to the Competition Commission of Pakistan (CCP) reservations regarding International Accounting Standards-39 (IAS-39) by the SECP and a positive response by India and other international countries over investigations of the last Mumbai attack all of these factor invited a fresh wave of confidence; local and corporate participants actively accumulated main board stocks of almost all the sectors.

Technical recovery after four bearish sessions found support from the news regarding acceptance of amendments proposed by the financial institutions regarding routing of impairments, and the index managed to breach the psychological 5,500 points, quite comfortably, he added. Confirmation of the development did invite celebration, the main board stocks made it towards the upper locks, as the relaxation forced the sellers to go on back foot. Issues of liquidity however led to profit-taking, change in sentiment however made possible change of hands on strength. Further development on initiative by the SECP regarding activation of the ready market leverage tool, positive response by annoyed neighbour(easing of ties with India), can certainly allow the local players to actively participate in the discounted local bourses.

Bank Al-Falah was the day volume leader with 21.484 million shares closed at Rs13.15 with a gain of 94 paisa followed by NIB Bank with 16.926 million shares closed at Rs5.43 with a gain of 61 paisa, JS Company with 11.032 million shares closed at Rs32.19 with a gain of Rs1.53, Oil & Gas Development Company with 10.050 million shares closed at Rs51.38 with a gain of Rs2.44 and Pakistan Telecommunication Company with 8.454 million shares closed at Rs15.76 with a gain of 73 paisa.

KSE recovers following SECP’s relaxation in accounting treatment

 

[Omar1984]

Govt suggested to stop LPG wastage

Experts oppose tax concessions on gas import

Saturday, February 14, 2009
By Mansoor Ahmad

LAHORE: Petroleum experts have suggested to the government to stop wastage of 800 tons of liquefied petroleum gas daily and opposed tax relief for gas import.

They have expressed concern over government’s intention to facilitate import of LPG through tax concessions or levy of more taxes on local producers instead of securing 800 tons of gas being wasted daily by burning it into the air.

Experts inform The News that the natural gas supplied by the two distribution companies of the country is pure methane gas. The gas extracted from different fields contains traces of vapours of other combustible gases which have to be separated from methane gas before pumping it into the gas distribution network. The LPG, they say, is a mixture of these gases.

The News has found that the country currently produces 1,500-1,600 tons of LPG daily. During summer, this gas is usually sufficient for local needs while in winter it is in short supply which is bridged through imports.

Some importers allege that local LPG producers manipulate prices to discourage imports. LPG imports have never exceeded 4,500 tons.

The experts point out that the natural gas produced from different gas fields is purified to make pure methane either by producing LPG or burning the vapours of other gases in the air. Unfortunately, the successive governments have let the precious LPG gases burn. Gas vapours of Badin oil field were allowed to burn for 12 years before Jamshoro Joint Venture Limited established an LPG plant which produces 500 tons daily. The plant is operating at 98 per cent efficiency.

The plants being run by state-controlled Oil and Gas Development Company operates at 65 per cent efficiency. They say the OGDC currently produces 1,000 tons of LPG daily and by improving its efficiency it could add another 330 tons from its existing plants.

Moreover, they say there are still many gas fields where instead of converting gas vapours into LPG they are being burnt so that pure methane is injected into the natural gas distribution system. The experts suggest the government should invite applications for establishing plants at these gas fields through a transparent process as it would lead to additional production of 500 tons of LPG.

The JJVL plant became operational only 11 months after the award of licence to establish an LPG production unit. The new LPG producing plants could be established in a year or so if the government moves with right speed and then there would be no need to import LPG, they say.

The News has learnt that the government is mulling over ways to facilitate import of LPG either by increasing the price of local gas through additional levies or by waiving general sales tax on imported LPG. This step, if implemented, would perhaps be the first instance where importers would have an advantage over local producers. The experts point out that even if the government wants to increase use of LPG, it should first exploit its production potential before facilitating imports.

Many investors are eager to invest in LPG plants. In fact, when the OGDC invited tenders for establishing an LPG plant on one of its gas fields the response was so strong that the successful bidder paid the company a non-refundable amount of Rs250 million. More LPG producing plants could be established in the same manner instead of supporting imports.

Govt suggested to stop LPG wastage

 

[s90]

Economic indicators improving: PM

ISLAMABAD: Prime Minister Yousuf Raza Gilani said on Friday that despite global recession, economic indicators in Pakistan were showing signs of improvement and this would help the government to provide relief to the masses.
Talking to reporters after attending a briefing on economic situation and development at the Planning Commission, Gilani said the global economic meltdown had affected Pakistan, but it had managed to meet IMF’s targets.

 

[opinion786]

One more Economic website with facts: Economic Pakistan

Pls give suggestions how to improve it. Regards!

 

[opinion786]

This is a wonderful page and I really thank NEO for maintaining it! Best Wishes!

 

[Neo]

Remittances may help meet dollar demand ​

Saturday, February 14, 2009

KARACHI: There will no immediate negative implication of the government’s decision to stop State Bank of Pakistan (SBP) from providing dollars for oil imports as remittances by overseas Pakistanis have improved, industry people told The News.

Commercial banks will easily meet the requirement as stability in the rupee-dollar parity has dimmed prospects for speculation which led to a shortage of dollar in the recent past, foreign exchange dealers said.

“We will have to wait and see how the market (banks) manages the dollar supply,” said an oil industry executive. “But I don’t think there will be any severe repercussion.”

The State Bank of Pakistan discontinued provision of dollars for furnace oil imports from Feb 1 as part of an IMF loan requirement which says the market should meet the foreign exchange needs for trade.

The central bank will stop dollar supplies for import of diesel and other refined products from August 1 and by next year payments for crude oil imports will also be the business of commercial banks. This has raised concern that the inter-bank market could come under pressure and the dollar might go up against the rupee, creating problems for oil importers.

The government had assigned the responsibility of making payments to the SBP last year after the market started facing a crunch. Haji Haroon, a foreign exchange dealer said, there is little chance of that happening again. “There is no panic in the open market now and we don’t expect to see that either.”

He said that the dismal performance of the stock market and property sector has made investors skeptical about investing in foreign exchange. Economic indicators have also been improving and the flow of foreign direct investment and remittances will help stabilise the country’s foreign exchange reserves further.

“The central bank projects that the current account deficit will shrink to $3.9 billion in six months (Jan-June 2009) from $7.3 billion in the first half. This will help foreign exchange reserves exceed $13 billion by the end of June, compared to $10.2 billion at the end of January,” a Standard Chartered report said.

 

[Neo]

Philippines may become major buyer of Pak rice ​

Saturday, February 14, 2009

LAHORE: Philippines Ambassador Jaime J Yambao has said his country, with a dynamic consumer market, has unlimited scope for Pakistani businessmen dealing in pharmaceuticals, rice, textile yarn, leather and fresh fruits particularly oranges.

Speaking at the Lahore Chamber of Commerce and Industry on Friday, the ambassador said the Philippines would continue to be a heavy importer of these products. “It could be a major buyer of rice from Pakistan in near future as it does not have an enormous natural irrigation system.”

He said opportunity areas for business with the Philippines were based on upward trend in exports including electronics, construction material, marine products, organic and natural products, home furniture, giftware, auto parts and components, IT and IT-enabled services.

Yambao said there was a need to activate a framework of agreements on trade and economic ties, adding the great potential for expansion in trade and economic relations could be successfully tapped through increased contacts between the business sectors. “The Philippines embassy is committed to facilitating these contacts.”

He said the Philippines was an open economy and allowed 100 per cent foreign ownership in all sectors. Government corporations were being privatised and banking, insurance, shipping, telecommunications and power industries had been deregulated.

The envoy said there was a dire need for business communities of the two sides to join hands for joint ventures as Manila’s trade with Islamabad constituted less than 10 per cent of its trade with the world.

Speaking on the occasion, LCCI President Mian Muzaffar Ali assured the ambassador of full cooperation in increasing the volume of two-way trade. Despite an increase of 169 per cent in trade between the two countries over the last four years, he said, both had a lot of potential to expand trade.

He said Pakistan’s major exports to the Philippines included cotton, cereals and pharmaceutical products, but these formed a very little segment of the Philippines’ total imports of these commodities from the rest of the world.

“Pakistan is one of the largest producers of cotton and rice in the world. The aroma and quality of rice is superb.” He said Pakistan could increase its imports of vehicles, machinery, electrical and electronic equipment and mineral fuels from the Philippines.

The LCCI president said being an agrarian economy, ample opportunities were available in the food processing sector. “Pakistan is deficient in post-harvest technology and would welcome transfer of technology from Manila through joint ventures,” he added.

 

[Neo]

Iran to provide 1,100 MW to Balochistan industrial estates ​

Saturday, February 14, 2009

QUETTA: Minister of State for Industries and Production Dr Ataullah Durrani on Friday said that Iran had agreed to provide 1,100 megawatt power to six industrial estates being set up in Balochistan.

Addressing a press conference here, he said the Iranian assistance would greatly help flourish industrial culture in the province, which would, on the one hand, attract private investment to various sectors while, on the other hand, eliminate unemployment in the province to a considerable extent.

He said the federal government was determined that Balochistan should be the chief beneficiary of the Gwadar Port and in this regard, it might withdraw all the agreements reached by the previous government wherein in the province’s interests regarding the port had been undermined.

He said the PPP government was fully conscious of the injustices done to the province in the past and committed to its compensation by extending maximum financial assistance to the province, so that it could overcome its backwardness.

Expressing gratitude to President Asif Ali Zardari and his team for writing off all the State Bank loans against the province, he said those loans had been obtained by the previous provincial governments, and the incumbent federal government, keeping in view the financial hardships of the province, had waived off all the loans in order to empower the province financially.

A huge amount of the provincial budget used to go under debt servicing to the State Bank, disabling the provincial government to implement several public service schemes. He, however, said the step would certainly end the financial crisis of the province, enabling it to expand its public sector development programme, so that no human settlement across the province remained deprived of fruits of development.

The minister rejected the impression of shortage of wheat and fertiliser in the province and said the department concerned had ensured sufficient fertiliser stock at all its utility stores and agriculture centres across the province.

Farmers could purchase the urea they needed from these stores on subsidised rates, he said, adding that the provincial Food Department had sufficient reserves of wheat, which could cater for the need of the province.

He said the federal government would ensure the availability of urea to the province in accordance with its needs. To a question regarding the smuggling of wheat and urea to Afghanistan from the province, the minister called for the people to help the government overcome smuggling from the province.

 

[Neo]

Compliance with IMF targets: MoF keeps budget deficit at 1.9 percent of GDP​

ISLAMABAD: To ensure strict compliance with International Monetary Fund (IMF) targets, the Ministry of Finance (MoF) has been able to keep the budget deficit at Rs 259 billion or 1.9 percent of the Gross Domestic Product (GDP) during the first half (July-December period) of the current fiscal year 2008-09, official sources told Daily Times on Friday.

MoF had projected to keep the budget deficit at 2 percent of the GDP during the first half of current fiscal year 2008-09 and actual deficit has been estimated at 1.9 percent of the GDP, the limit agreed with IMF.

Budget deficit has witnessed a decline by 27.24 percent during first half of the current fiscal year with a total deficit at Rs 259 billion as against the deficit of Rs 356 billion recorded during same period of last fiscal year 2007-08.

The government has decided in the Economic Stabilisation Programme to adhere to the fiscal deficit target reverently and during the first half the fiscal deficit hovered around 1.9 percent of the projected GDP for 2008-09, which is consistent with the annual fiscal deficit target of 4.2 percent.

The fiscal improvement in the first half is largely based on reduction of oil subsidies and a cut in development spending. All meaningful efforts to expand revenues particularly by broadening the tax base will only work in the medium-term. The faster growth of 35.5 percent in the total revenues is more than off-set by even faster growth of 25.2 percent in the current expenditure.

The financing patterns of fiscal deficit remained dominated by the banking system, which financed 66 percent of the fiscal deficit and only 29 percent were financed by the non-bank sources. The government remained well ahead of the SBP financing limit allowed by the Economic Stabilisation Programme. On the external inflows to finance, the deficit remained negligible at Rs 12 billion only.

According to the IMF Stand By Arrangement (SBA) Letter of Intent, fiscal deficit would be brought down to 4.2 percent of the GDP as against the budgetary target of 4.7 percent of the GDP in the current fiscal year 2008-09; similarly, the deficit would be further reduced to 3.3 percent of the GDP in next fiscal year 2009-10.

At the time of the announcement of the budget, budget deficit was projected at Rs 582 billion and later this projection was changed to Rs 562 billion for the full fiscal year 2008-09. The budget deficit was projected at Rs 262 billion for the first half (July to December period) of this fiscal year and actual deficit was registered at Rs 259 billion, the official added.

The MoF has estimated that the growth in GDP on current market price basis would decelerate and end up at $163.2 billion against the target of $186.1 billion fixed for the current fiscal year 2008-09.

Current Account Balance: Pakistan’s current account deficit expanded by 20.1 percent during July-December 2008. Current account deficit widened to $7.3 billion as against $6.1 billion last year.

 

[Neo]

Poverty rate jumps to 37.5 percent from 23.9 percent in three years ​

ISLAMABAD (February 14 2009): Pakistan's poverty rate jumped from 23.9 percent to 37.5 percent in the course of three years after severe economic shocks hit Pakistan, Planning Commission officials told Prime Minister Yousuf Raza Gilani in a briefing on Friday. It said that Pakistan needs aggressive development plan focusing on food security, poverty and supply side challenges.

Officials said that over 64 million people, out of 160 million population, has plunged into the poverty pool. Sharp increase in unemployment has led to vulnerability of poor households. The presentation made by Planning Commission said, "Slow economic growth, sudden external shocks resulted in high inflation and shortages impacting on cost of doing business, and plunged 64 million population bellow the poverty line from 35.5 million people in 2005".

According to the presentation, 40 percent of the urban population lives in Kachi-Abadies/slum areas. Slashing social sector spending is increasing poverty and has reduced the standard of living in the country. Pakistan's position in human development index is 136 out of 177 countries--even below Maldives and Bhutan in South Asian region.

During first six months of current fiscal year the government spent only 19 percent from total allocation of Rs 371 billion of federal public social development program, lowest until 2005. This federal level PSDP has already been slashed by Rs 100 billion in addition to envisaged operational shortfall at Rs 77 billion.

In the first half of last fiscal year the government had released Rs 132.6 billion, which is 39.6 percent of total allocation of Rs 371 billion. Break-up of PSDP releases shows Rs 166 billion (45 percent) for infrastructure development, the social sector has been given highest priority with an allocation of Rs 188 billion and or 51 percent of the fund. Other departments (Agriculture, Industry, Minerals) have been allocated Rs 17 billion.

After six months social sector suffered a major cut as out of Rs 100 billion cut in development spending Rs 79.5 billion was 'through forward' from social sector projects, while 'through forward' for education sector is Rs 20 billion and for health Rs 39.7 billion for next year.

To meet IMF 4.2 percent fiscal deficit condition, major cut came on development budget. In addition to this, Planning Commission has already asked ministries to prioritise their project in A, B & C categories. The Planning Commission document said that achieving IMF conditions ultimately would lead to ignoring social sector spending. This would land Pakistan in a situation where it would be missing most of the UN Millennium Development Goals (MDGs).

 

[Neo]

Economic indicators showing positive trend: Prime Minister​

ISLAMABAD (February 14 2009): Prime Minister Yousuf Raza Gilani has said that economic indicators are showing positive trend, and pledge to provide relief to the masses. He was talking to newsmen after taking a briefing from the Planning Commission (PC) about its strategy towards overall development in the country. He said that the financial meltdown had hit the entire globe and not only Pakistan.

About reduction in petroleum products prices, he said that the government for the first time in Pakistan's history had reduced the prices. About Swat situation he said that military action alone was not the solution to the problem. Pakistan has met International Monetary Fund (IMF) targets, he added. Meanwhile, a statement said that the Prime Minister underlined the need for all-out efforts to ensure merit and transparency in every area of national development.

He said that no country could make progress without good governance as this is the key to success and without observing these norms it is not possible to achieve the desired results. He said the people have given the party the mandate for change and there is huge responsibility lying on it to come up to their expectations.

The Prime Minister said this while chairing a meeting to review the performance of the Planning Commission and progress of various projects at the planning commission. The Prime Minister directed the Planning Commission to incorporate nine-point economic agenda in the planning fold which had already been approved by the Cabinet taking all the stakeholders on board for ensuring better co-ordination and implementation.

He said that he would hold a quarterly meeting to review the status of the projects. He also directed that all future planning should focus on areas which could bring about positive change in the lives of the people through socio-economic development. The Prime Minister also directed the Planning Commission to adopt proactive approach while envisaging various projects for securing more FDIs for infrastructure development with a view to alleviating poverty from the country.

He further directed for close co-ordination with all ministries while monitoring of the GOP projects and underscored the need to avoid duplication and overlapping of work as it would not only prove counter-productive but would also cause waste of public money.

He directed the Planning Commission to induct a woman as member in the task force to ensure representation of this important segment comprising over 50 percent of the population. The Prime Minister said that foremost priority areas before the government are to address law and order situation and the economic crisis as both are interrelated.

He said that more funding was being earmarked for infrastructural development and poverty alleviation in the country. He also asked the Planning Commission that it should formulate policies which have the capacity to absorb both internal and external shocks at the time of crisis. He said despite global economic recession, Pakistan's economy has now started showing positive results. He said that not only the inflation has reduced but other economic indicators were also showing improvement. He said that this became possible only due to prudent economic policies introduced by the present government.

Adviser to PM on Finance Shaukat Tareen told the media that the government had taken some tough decisions for betterment of the economic situation. These measures would take some time to bring about improvement in the economy, he added.

Deputy Chairman of Planning Commission Assef Ahmed Ali later told reporters that the Prime Minister was briefed about the Rs 600 million National Human Resource Development program aiming at training around 0.25 million highly skilled technicians annually. He replied in the negative about any cut in the Public Sector Development Program and said that projects worth Rs 100 billion would be thrown forward under the rationalisation program.

 

[Neo]

23.66 percent rise in SPI recorded ​

ISLAMABAD (February 14 2009): Inflation has been swelling as Sensitive Price Indicators (SPI) surged by 23.66 percent on February 12 over the same week of last year, said Federal Bureau of Statistics (FBS) on Friday. Official figures released by the FBS showed rise in inflation during the week as it went up from 23.11 percent of previous week to 23.66 percent.

An increase of 0.65 percent in SPI inflation was recorded during the week following rise in the prices of 20 essential commodities. With this rise in inflation, the dearness for the low-income group with Rs 3000 monthly income increased to 23.38 percent during the week, followed by 23.98 percent for Rs 3000 to Rs 5000 income group.

Inflation was recorded 24.85 percent for families falling in Rs 5001 to Rs 12000 income range, and 23.38 percent for above Rs 12,000. The combined SPI indices for all income groups went up from 204.79 last week to 206.12 this week. The SPI bulletin showed that prices of 20 essential commodities increased during the week, declined in 13, and prices of 20 essential commodities remained stable.

The price of per kg onions increased to Rs 26.98 from Rs 22.95, egg hen (farm) dozen to Rs 59.88 from Rs 53.44, chicken (farm) kg to Rs 112.98 from Rs 102.67, tomatoes kg to Rs 28.06 from Rs 26.70, electric bulb 60 watts each to Rs 15.03 from Rs 14.75, bananas dozen to Rs 35.81 from Rs 35.15, tea (prepared) cup to Rs 8.68 from Rs 8.56, mutton kg to Rs 261.48 from Rs 258.63, firewood 40 kg to Rs 270.93 from Rs 268.28, LPG (11 kg cylinder) each to Rs 844.65 from Rs 837.59, rice Irri-6 kg to Rs 36.49 from Rs 36.32, washing soap nylon cake to Rs 12.71 from Rs 12.65, vegetable ghee loose kg to Rs 99.02 from Rs 98.60, beef kg to Rs 144.00 from Rs 143.41, cooked beef plate each to Rs 40.77 from Rs 40.65, wheat average quality kg to Rs 24.48 from Rs 24.42, cooked dal plate each to Rs 25.87 from Rs 25.82, wheat flour average quality kg to Rs 24.56 from Rs 24.54, curd kg to Rs 43.28 from Rs 43.25, milk fresh litre to Rs 36.54 from Rs 36.53.

However, price of per kg potatoes during the week declined to Rs 13.22 from Rs 13.98, gram pulse washed kg to Rs 59.38 from Rs 60.55, garlic kg to Rs 41.74 from Rs 42.49, sugar kg to Rs 42.07 from Rs 42.71, gur kg to Rs 46.07 from Rs 46.46, masoor pulse washed kg to Rs 126.57 from Rs 127.43, rice basmati broken kg to Rs 44.45 from Rs 44.67, kerosene liter to Rs 63.71 from Rs 64.01, red chillies kg to Rs 132.95 from Rs 133.51, mustard oil kg to Rs 141.28 from Rs 141.62, cooking oil (tin) 2.5 liter to Rs 351.15 from Rs 351.44, moong pulse washed kg to Rs 48.14 from Rs 48.16, mash pulse washed kg to Rs 76.19 from Rs 76.21.