India, Sri Lanka to form Joint Working Group

In the first meeting of the joint ministerial committee (JMC) under the Indo-Sri Lanka Free Trade Agreement (FTA), the two countries have decided to form a working group to examine how services could be included in the FTA.

The Indian delegation was led by commerce minister Murasoli Maran while the Sri Lankan commerce minister Ravi Karunanayake headed his country's delegation in the meeting which took place in New Delhi recently.

Both the ministers agreed that trade in services had become important and there was a need to utilise the core competence of both the countries especially in the areas of transshipment, tourism and professional services to their mutual advantage.

Tea industry in India battles against colas

India's beleaguered tea industry, the world's largest producer, has launched an aggressive promotion back home touting the health benefits of drinking the beverage, in a bide to woo back the growing number of people turning to colas.

The industry's leaders have unveiled a number of instant tea drinks for the new-generation consumers, combined with an advertisement blitz.

Bangladesh budget aims at self-reliance

Bangladesh's government budget seeks to reduce the poor country's dependence on foreign aid and boost economic growth, officials said. Foreign loans and grants will account for only 14 percent of the 450 billion taka ($8-billion) budget for 2002-03, down from the average 40 percent in previous years, Finance Minister Saifur Rahman said as he presented the budget in Parliament. The legislature has to approve the budget before it takes effect.

"It is our cherished goal to attain gradual self-reliance," Rahman said as he set the economic growth target at 6 percent for the fiscal year beginning July. Growth for the current year ending June 30 is estimated at 4.8 percent.

Pakistan's economy improves

Pakistan's economy outpaced its performance in the previous fiscal year despite the war on terrorism and tensions with nuclear-rival India, Finance Minister Shaukat Aziz said recently.

Aziz told reporters that preliminary figures show the gross domestic product grew by 3.6 percent during the fiscal year ending June 30, compared with 2.5 percent in the previous fiscal term.

The International Monetary Fund reduced its economic growth forecast for Pakistan to 3.3 percent from 3.7 percent for the current fiscal year because of a slow down in exports, manufacturing growth and the agriculture sector.

Aziz noted that preliminary figures show Pakistan outperformed the revised forecast. The inflation rate is now 2.6 percent which is lowest since 1970s.

The finance minister said Pakistan's foreign debt now stands at $ 36 billion as compared to last year's $ 38 billion. he said the reduction was due to a considerable increase in foreign assistance to Pakistan because of its support of the war against terrorism.

Donors pledge $ 150m for Sri Lanka

Foreign donors have pledged an initial amount of $ 150 million for reconstruction of Sri Lanka's northeast, which has been ravaged by 18 years of ethnic conflict, a government minister said recently.

The government plans to use the money for its top priorities, such as roads, hospitals, water works and community centers, finance minister KN Choksy said after a meeting with representatives of about 80 aid agencies, including the Asian Development Bank.

The push to rebuild gained momentum after the Sri Lanka government and Tamil Tiger rebels signed a cease-fire agreement in February.