SAARC
GDP growth estimated at 5.4% in India
The gross domestic product (GDP) growth in India in the year 2000-2001 will be at 5.4 percent while it will be about six percent per annum in the next three years (2001-02 through 2003-04), according to a leading economist.
"GDP this year would increase by about 5.4 percent over the previous year. Even this would be possible provided agriculture performs reasonably, particularly rabi crop," BB Bhattacharya of the Institute of Economic Growth said.
Industry would definitely showdown to about six percent growth and services would also, after a considerable period, decelerate to less than seven percent growth, he said.
According to him, economy may grow at about six percent per annum in the next three years. Services would be the most dynamic sector with an average growth of eight percent plus. Industry on the other hand may grow at a moderate rate of about six percent per annum.
While GDP growth in 2000-01 would be 5.4 percent, down from 6.2 percent in 1999-2000, agriculture would grow at 2.5 percent, up from 1.5 percent. Industrial growth will be six percent as against eight percent last year while services would post 6.8 percent growth down from eight percent.
ASSOCHAM calls for longterm tax policy
In a pre-budget memorandum to the finance ministry, the Associated Chamber of Commerce and Industry of India (ASSOCHAM), has suggested that a long term taxation policy be devised which will highlight the tax structure, fiscal deficit and inflation rate for the next five years.
The memorandum has further stressed on the need to reorganise business for meeting challenges of the future competitive business environment. Assocham has also said that the benefit of carry forward and set off losses/depreciation of the amalgamating company should be extended to an amalgamating company, which is in the non-manufacturing sector.
IMF urges Pakistan to Correct Economy
The IMF recently urged Pakistan authorities to impose discipline on the economy, notably by curbing expenditures, boosting tax collections and promoting the private sector.
International Monetary Fund executive directors, according to a summary of their recent assessment of Pakistan, said that growth aided by favorable agricultural output has picked up and should come to 4.8 percent in the 1999-2000 fiscal year after 3.1 percent in 1998-1999.
Sri Lanka to receive $ 1B aid
Sri Lanka will receive over billion U.S. dollars in aid from 24 donor countries and international agencies which participated the two-day Sri Lanka Development Forum meeting held in French capital Paris recently a senior government official has disclosed.
Minister of Samurdhi (prosperity), Rural development and Parliamentary Affairs S.B. Dissanayake, who is also the deputy finance minister, was quoted by the state-run Daily News as saying that the sum is the highest ever awarded to his country by these donor countries and international organizations.
Pakistan lagging behind key targets linked to IMF loan
Pakistan's low revenue collection and high bank borrowing may affect the release of a second tranche from a recently approved International Monetary Fund stand by loan analysts warned recently.
The IMF on November 30 approved a 596 million dollar stand by package over 10 months, marking Pakistan's readmission into international financial circles.
Pakistan had made a commitment to the IMF to cut the budget deficit to 5.2 percent of gross domestic product in its current fiscal year to July 2001 from 6.4 percent in the previous year.
Bangladesh export earnings grow 25 percent
Bangladesh's exports earnings grew 25 percent during the first quarter of the fiscal year beginning in July compared to the year earlier period, a minister said recently.
In the 1999-2000 fiscal year, exports grew 10 percent compared to three percent for 1998-1999 and 16.8 percent for 1997-1998. Industries Minister Tofail Ahmed told parliament.
Ahmed did not give details, but blamed devastating foods in 1998 for a major decline in exports in fiscal 1998-1999, adding Bangladesh's current growth is higher than any other country in South Asia.
The government is targeting export earnings this fiscal year of 6.30 billion US dollar, against earnings of 5.75 billion dollars for the fiscal year to June 2000.
