15% hike in rail fares recommended

LAHORE: GM Operations Pakistan Railways, Ashfaque Khatak, late Friday said he has sent federal government a summary requesting for 15 percent increase in fares of goods and passenger trains, Geo news reported.

Talking to Geo news he termed inflation in rail fares as ‘indispensable’ in order to meet additional expenses of Pakistan Railways given the salary-raise for government employees and increase in diesel and electricity tariff.

Rs47.332bn AJK deficit budget presented

MUZAFFARABAD: Azad Jammu and Kashmir (AJK) government Friday announced an overall consolidated budget of Rs 47.332 billion for fiscal year 2010-11 with a record deficit of over Rs 17.6050 billion, allocating Rs 11.1749 billion for Annual Development Programme (ADP).

AJK Minister for Finance Raja Nisar Ahmad Khan presented the budget in the AJK Legislative Assembly, which was presided over by Speaker of the Assembly Shah Ghulam Qadir.

The opposition boycotted the budget speech of the Finance Minister after a short protest in the house against non-provision of their development funds during the outgoing fiscal year.

The budget sets aside Rs 11.174965 billion for development, up by 10 per cent over the outgoing fiscal year's original allocation of Rs 9.555 billion as compared to original spending of Rs 7.13 billion.

The finance minister hoped that the federal government would provide grant in aid to meet the development expenditures deficit.

The total revenue receipts were estimated as Rs 22.9 billion including share from the taxes of Kashmir council income from local resources of Rs 9.92 billion, Mangla Dam water usage charges Rs750 million, share from AJK council taxes Rs 4.5 billion, and share from federal taxes Rs 6.68 billion.

The finance minister announced 50 per cent ad hoc increase in the salaries of the government employees, police officials, pensions and medical allowance following the federal government's initiative.

However, he did not announce any cut in the salaries of ministers and government functionaries as the federal and provincial governments did by cutting down their expenditures.

It is pertinent to mention that AJK has the biggest cabinet of its history with all treasury members except one having the portfolio.

The finance minister in his budget speech said the share of the federal government in the new National Finance Commission (NFC) award was reduced, which had also affected the AJK share putting his government in financial crunch.

"If we are provided net profit over the hydro-electric projects, complete share from the federal taxes and Kashmir property, we might not need any grant in aid to bridge the gap between income and expenditures," he informed the house.

The minister said the government need extra seven billion rupees in the current expenditures head to raise the salaries of government employees, Judiciary, police and 100 percent increase in the medical allowance of grade 1 to 15 employees and 15 percent of higher grade officials.

In the development budget, priority has been given to transport and communication sector by allocating a sum of Rs 4.18 billion for the construction and maintenance of roads and bridges, besides fixing Rs 1.5 billion for development projects in the power sector.

Local government departments would be provided Rs one billion during the next fiscal year while Rs 916 million have been allocated for foreign funded projects. The education sector would get Rs 800 million for its development schemes.

The minister announced to regularize 1100 contractual employees during the fiscal year starting from July 1, but no new post has been announced in the budget.

In the non-development expenditures head, a junk amount of Rs 7.594 billion have been allocated for the education sector, Rs 5.30 billion for electricity department, Rs 3.31 billion in the head of miscellaneous expenditures, Rs 2.5 billion for state trading, Rs1.82 billion for health, Rs 1.17 billion for general administration, Rs 1.6 billion for the payment pension and Rs 1.58 billion for police department.

The minister also presented the revised budget estimates of Rs 32.78 billion for the outgoing fiscal year 2009-10 in the house, out of which Rs 25.65 were for non-development expenditures and Rs 7.13 for the development expenditures. The revised budget shows a deficit of Rs 5.5 billion.

The house will debate the budget for the fiscal year 2010-11 and revised budget for the outgoing fiscal year from Monday after a two days pause.

Poultry products prices rise in Karachi

KARACHI: The prices of poultry products have risen in Karachi with addition of Rs.10/kg in chicken meat while eggs by Rs.3 a dozen, Geo news reported Friday.

Spokesman Pakistan Poultry Association (PPA), Maroof Siddiqui, told Geo news price of chicken has hiked by Rs.8/kg and is now selling at Rs.146/kg while chicken meat saw inflation by Rs.10/kg to sell at Rs.248/kg in local market.

“Summer vacations and commencement of marriage season are the major causes to contribute hike in prices of poultry products”, he identified.

Further more, eggs price has risen by Rs.3/dozen to sell at Rs.59, he added.

Storied Park Gets Italian Face-Lift

ALTAVILLA VICENTINA, ITALY — Alberto Zamperla sweeps through the cavernous workshop here where his amusement rides are made while workers measure and bang and solder enormous platforms, oddly shaped beams and assorted fiberglass vehicles.

Spring is a busy time for his company, and attractions are being prepared for the summer season that is about to open in theme parks around the world.

This year, however, one destination has Mr. Zamperla racing against the clock: Coney Island in New York City, where in a few weeks he will present a new amusement park featuring 22 rides, including the Tickler, a family-oriented roller coaster; the whirly Mega Disko; and Air Race, a heart-gulping aerobatic experience.

Coney Island is the largest investment yet in the 50-year history of Zamperla Group. Zamperla is the majority shareholder of Central Amusement International, or C.A.I., a New Jersey company that signed an agreement in February with the city of New York to build and manage the amusement area. C.A.I. has spent $15 million on the refurbishment of the park, about half of the $30 million it expects to invest.

“Ride manufacturers have been operating rides in parks or fairgrounds for many years,” said Andreas Veilstrup Andersen, executive director of the European office of the International Association of Amusement Parks and Attractions. “However, a project as big as Coney Island is very unusual.”

Time has been tight, with the park’s opening set for the end of May.

“We had a pretty good idea of what we could produce on time,” said Mr. Zamperla, the chief executive. “There’s a lot of pressure, because all eyes are on us. Things just can’t be good, they have to be perfect.”

Luigi De Vita, managing director of the company, added: “When we’re under pressure, we give the best of ourselves.”

Theme parks and amusement parks have a global lure, with about 758 million visitors worldwide in 2007, according to the latest study from PricewaterhouseCoopers on the outlook for entertainment and media. Worldwide revenue in 2007 was $24 billion, the study said.

Zamperla, according to industry experts, is ranked among the top five manufacturers of amusement park rides.

The Coney Island project will be called Luna Park, after the original playground that stood there until World War II. Drawings for the new main gate on Surf Avenue meticulously mimic the original design, albeit in a flashier revamp.

The park at Coney Island “had its glory but lacked an innovative spirit,” Mr. Zamperla said of a site that in recent decades had become a little down at heel. In February, C.A.I. won the bid on a 10-year lease to build and operate the park, which sits on a city-owned lot.

“Their specific proposal was a nice blend of honoring the history of Coney Island, while developing it as a modern 21st-century amusement park,” said Seth W. Pinsky, president of the New York City Economic Development Corp.

Zamperla was chosen because it had a sound track record in operating amusement parks, including the Victorian Gardens, a children’s amusement area in Central Park in New York. And it was known as the producer of “some of the most exciting rides in the world,” Mr. Pinksy said.

The Zamperla family has been building amusement park attractions at Altavilla Vicentina since the early 1960s.

Alberto’s grandfather, Umberto Zamperla, opened one of the first movie houses in Italy, then moved into carnival attractions. His father, Antonio Zamperla, worked in traveling shows before deciding to settle in this Veneto town to start inventing and manufacturing rides.

Alberto Zamperla, 58, the eldest of five children, took the show on the road, so to speak, and there are now factories or sales offices in several countries, including the United States, China, Russia and Dubai. His group sells to customers in more than 90 countries and now exports about 95 percent of its products.

There are about 185 employees in Italy, with an additional 270 around the world.The nuts and bolts of the business — its administration as well as its main manufacturing activities — are at the headquarters near Vicenza, an industrial district that is the third-largest exporting center in Italy, according to the local chamber of commerce. The area produces goods including gold, textiles and furniture.

Carmine Tripodi, who teaches strategic and entrepreneurial management at Bocconi University in Milan, said Zamperla was representative of Veneto’s fertile manufacturing tradition only “up to a certain point,” as it had taken the leap into the international market. “That is not so common,” Mr. Tripodi said, “and one of the great challenges is the measure by which these businesses are able to be protagonists in other markets.”

A stroll though the headquarters at Altavilla Vicentina hints at the complexity of producing amusement park rides for the world’s major theme parks, including various Disney Parks (“In our business, it’s the best reference you can have,” Mr. Zamperla said), Six Flags theme parks and malls worldwide. Even the late Michael Jackson’s Neverland estate has Zamperla rides.

On average, the company spends about €1 million, or $1.33 million, a year designing new products. Attractions are designed using complicated computer algorithms and mathematical models and then built and tested here. Zamperla has dozens of patents on items like merry-go-round decorations and roller coaster seats.

“This is where ideas are born,” Mr. Zamperla beamed as he looked at the Moto Coaster, a ride being prepared for a dinosaur theme park in Changzhou, China. Each ride requires about a year from design to delivery, he said, and can cost anywhere from €20,000 to €6 million. The Moto Coaster sells for €3.5 million and will be one of the new attractions at Coney Island next year.

Safety, and compliance with international standards, is an obvious priority. Accidents are rare, but they do happen, and Zamperla has not been spared. “You build as safely as you possibly can — the laws regulating amusement rides are more severe than for automobiles,” Mr. Zamperla said.

The global economic turmoil has been felt in the amusement ride industry, though in 2009 the effects were felt less in Europe than in other parts of the world, said Mr. Andersen, of the amusement park association. Last year, about 4.5 million people visited amusement parks in Europe.

“There’s money to spend on investments,” Mr. Andersen said, which makes him optimistic about the industry’s future. “It’s a resilient business that has proven it can reinvent itself over the last 80 and 90 years, and I am confident it will continue to do so,” he said.

Demand is growing in new markets, too, especially in the Middle and Far East. Zamperla has a factory and sales offices in Suzhou, China, to serve the fast-growing Chinese market. “We’re not going to make the mistake of underestimating the Chinese,” he said.

The factory in China produces about €4 million worth of rides for the Chinese market. He exports about the same amount from Italy to China and hopes to reach €20 million in sales in two years.

And in well-established markets like the United States, long-term success in the amusement ride industry depends on novelty, Mr. Andersen said.

This year, for example, Coney Island will see the debut of Air Race, an airborne experience that the company describes as “the ultimate thrill ride,” alongside more placid family fare. Next year, new rides are expected in the Scream Zone, an addition to the park that will feature several Zamperla roller coasters intended mostly for teenagers.

“In the end, all we want to do is build rides that people will enjoy,” Mr. Zamperla said. And Coney Island, he said, “will be the perfect showcase” for the company.

Greece Calls for Activation of Financial Rescue

ATHENS — Describing his country’s economy as “a sinking ship,” Greece’s prime minister formally requested Friday an international bailout, testing the solidarity of the European Union as never before.“We drew up a plan, we took difficult and painful measures,” Prime Minister George A. Papandreou said in a nationally televised address. “But the markets did not respond.”

Worries about Greece’s runaway debt — its budget deficit last year added an estimated 13.6 percent of gross domestic product to an overall debt that already exceeded 100 percent of G.D.P. — have pushed interest rates on Greek bonds above those of emerging countries like India and the Philippines that are generally considered riskier.

Many investors are convinced that Athens, facing years of fiscal austerity and potential economic stagnation, will ultimately be required to reschedule its debts and renegotiate terms with lenders, a step short of a full default.

“This clearly buys Greece quite a lot of time,” said Julian Callow, chief economist at Barclays Capital in London.

But further out, Mr. Callow added, perhaps beyond 2011, “this doesn’t rule out some kind of rescheduling.”

That would involve negotiations with banks and bondholders in which Athens might try to reduce its obligations or push repayments further into the future.

The urgency in the Greek request was suggested from the fact that Mr. Papandreou was speaking from the Aegean island of Megisti rather than the capital. “The time has come for us to ask our partners in the E.U. to activate the mechanism we formulated together.”

He was referring to an emergency aid package arranged two weeks ago in Brussels. The plan foresees up to €30 billion, or $40 billion, in loans from Greece’s euro-zone partners, and up to €15 billion from the International Monetary Fund.

The activation of the E.U.-I.M.F. rescue plan, Mr. Papandreou said, “will send a strong message to the markets that the E.U. is not playing their game and will not leave its currency at risk.”

The announcement means that money from the I.M.F. can be released once the board of the fund has approved the terms.

“We are prepared to move expeditiously on this request,” Dominique Strauss-Kahn, the I.M.F. managing director, said in a statement issued in Washington, where a meeting of the Group of 20 finance ministers is taking place.

The loans pledged by Greece’s euro-zone partners are still awaiting approval by legislators in some countries. That includes Germany, which has the euro-area’s most important economy. Athens may end up receiving its money in bits and pieces from its partners rather than in a single check, said an E.U. official, who was not permitted to speak publicly.

The idea of bailing out Greece has been highly unpopular with German voters and may still face a legal challenge before that country’s Constitutional Court.

But the Finance Ministry in Berlin said the German government was “ready to act” to clear the way in Parliament.

“We in Germany are pledged to solidarity and we will show it,” Michael Offer, a spokesman for the Finance Ministry, said. “We’re doing this to stabilize the euro, which means it’s also in our own national interest.”

French and German banks are among the biggest holders of Greece’s sovereign debt, and a default would weigh heavily on their balance sheets.

Still, with an important regional election approaching at home, Chancellor Angela Merkel said that the aid would be granted only after Greece had negotiated a new austerity program with the Union, the European Central Bank and the I.M.F. — and after they had determined that Greece had no other options.

Those talks began this week in Athens and are expected to conclude in a matter of days.

“Only when these steps have been taken can we talk about aid as well as the kind of aid and amounts,” she said in Berlin. “It is not direct help from the government budget, but rather guarantees.”Mr. Papandreou did not mention any new budget cuts in his speech. The government has already implemented two austerity packages aimed at cutting spending and increasing revenue, which have fueled unrest from unions.Greece has near-term financing pressures. It requires up to €10 billion in May to cover redemptions, coupon payments and its primary government deficit, according to investors.

The Greek finance minister, George Papaconstantinou, insisted that the money would be there, “without a doubt,” and that Athens would be able to repay bonds coming due on May 19.

“Greece will have no borrowing problems on May 19,” he said in Athens before leaving for Washington.

The yield on benchmark 10-year Greek government bonds initially fell to 8.1 percent Friday after the reports, before rising again to 8.7 percent. On Thursday, it touched a new high of close to 9 percent.

The euro rose against the dollar after briefly touching the lowest point in a year early in the day, but then dipped again amid uncertainty over the timing of the aid.

The Athens composite share closed down 0.2 percent, reversing early gains of almost 4 percent.

More broadly, some investors fear that the Greek crisis has opened fault lines for the currency bloc that might be difficult to close.

“At some stage the euro area will arrive at a fork in the road,” said Gerard Lyons, chief economist at Standard Chartered Bank in London, “as some economies are structurally different to others.”

For Greece, Spain, Italy, Ireland and Portugal, the financial crisis has highlighted the constraints of euro membership. Unable to devalue their currencies to help regain industrial competitiveness, and impelled by E.U. fiscal agreements to meet certain budget targets, they are facing years of belt-tightening just when their economies could use a lift from additional spending.

Other countries like Germany, the Netherlands and Austria have kept deficits down while retaining an edge in global markets, in part of by restraining domestic wage increases. France lies somewhere between the two camps.

Mr. Lyons said the long-term choices for the euro area appeared stark: either push on toward a political union, handing budgetary power to a central authority, or form a “two-speed” block.

Marco Annunziata, chief economist at UniCredit Group, said Greece “should get some benefit of doubt as the I.M.F. program gets under way.”

He added that markets “will remain nervous and will most likely require to see several months of track record of successful adjustment before becoming more confident that debt sustainability is within reach and a restructuring can be avoided.”

The bailout package has raised a host of technical as well as political issues for the euro area, because the euro’s founding treaties insisted that no such step could be taken.

Berlin will raise its share of the money on the markets through KfW, the state development bank. Guarantees for those loans require approval by lawmakers.

In France, which is making the next-biggest contribution, the government has revised its 2010 budget to authorize a loan of up to €6.3 billion this year. French lawmakers will discuss the contribution next month.

“The process is under way,” the French economy minister, Christine Lagarde, said in Washington. “Everybody has to do their homework now.”

KSE-100 Index gains 11 points

KARACHI: Karachi Stock Exchange (KSE) witnessed a weak day as stock prices fluctuated throughout the session on Monday.

The benchmark KSE 100-share Index gained 11 points to finish the first trading day of the week at 10,669.

Today’s trade began with positive numbers and the major Index was, at one stage, seen floating at 10,691 points level. However, later profit taking in energy stocks took away the earlier gains, leaving the Index only with 11 points up.

The trade volume was recorded at 160 million shares with Lotte Pakistan topping the list of actives which an increase of paisas 30 to close at Rs12.40.

Power tariff need to be increased: Dr Hafeez

ISLAMABAD: Prime Minister Yousaf Raza Gilani's Finance Adviser Dr Hafeez Shaikh said if power tariff was not increased we would need to arrange more money to reduce deficit and satisfy World Bank and International Monetary Fund to get $ 900 million for curbing energy crisis.

He was addressing a seminar held at National University of Science and Technology.

He stressed the need to bridge the supply and demand gap of electricity. 'Six-point agenda has been chalked out to overcome energy crisis.'

International donors will not help until power theft is stopped, the advisor said.

Aviation industry suffers $200 million daily

LONDON: The aviation industry sharply criticized European governments on Monday for their handling of airport closures, saying there was ``no coordination and no leadership'' in the volcanic ash crisis that shut down European airports for a fifth straight day.

The International Air Transport Association says the airport lockdowns are costing the aviation industry at least $200 million a day and affecting millions of travelers since the volcano in Iceland begun erupting Wednesday.

Some smaller airports reopened, and European officials had hoped that flights could return to about 50 percent of normal on Monday ifthe skies were clearing.

But authorities in Britain, France, Germany, and the Netherlands home to three of Europe's largest airports said their air space was still closed. Britain said it was keeping flight restrictions on through until at least early Tuesday, while Italy briefly lifted restrictions in the north then quickly closed again Monday after conditions worsened.

Pakistani July-March c/a deficit narrows 68pc

KARACHI: Pakistan's current account deficit in the first nine months of the 2009/10 fiscal year was a provisional $2.702 billion, the central bank said on Monday.

That compared with a deficit of $8.379 billion in the same period last year, the State Bank of Pakistan said.

"Higher export receipts were the key reason behind the narrowing of the current account deficit," said Asif Qureshi, director at Invisor Securities Ltd.

The trade deficit for the July to March period of the 2009/10 fiscal year was $10.92 billion compared with $12.74 billion in the same period last year.

Pakistan recorded a provisional current account deficit of $40 million in March compared with a provisional $50 million in February.

In a quarterly report on the economy released last month, the central bank lowered its forecast for the 2009/10 current account deficit to 3.2-3.8 percent of gross domestic product, from previous estimates of 3.7-4.7 percent.

Analysts, however, said there could be some widening in the current account deficit.

"The current trend may not be sustained for long if oil prices continue to hold above $80, so we may see some deficit widening in coming months," said Qureshi.

An International Monetary Fund (IMF) emergency loan package of $7.6 billion agreed in November 2008 helped avert a balance of payments crisis and shore up reserves.

The IMF increased the loan to $11.3 billion in July and the central bank received a fourth tranche of $1.2 billion on Dec. 28.

The IMF has assured Pakistan it will approve the release of the next tranche at a board meeting on May 3, the country's prime minister's office said last week. The next tranche is of $1.2 billion.

Govt set to impose VAT from July

ISLAMABAD: Government of Pakistan is all set to enforce the Value-added Tax (VAT) regime from July 1 across the country amid widespread concerns among economists and traders.

The traders said the Tax would directly hit the common man.

The FBR is planning to enforce the GST Amended bill as a part of Plan-B under which the existing tax exemptions will be waived off as it seems reluctant to enforce VAT, because its staff is not so far given training on VAT and retailers are also not in a mood to pay VAT, as they have not been educated by the FBR on how to maintain their documents after the VAT is enforced.

The VAT would be received in proportion to the value hike in the products and services; thus, the Tax would be included in the price of a product from its production phase to the phase of supply to the consumers.

Only the consumer would be bound to pay the price of it all.

If 15 percent VAT is enforced, it would entail Rs125 billion in additional revenues in the first year of its promulgation; the Tax would not be applicable to the business that sells less than Rs7.5 million.

Federal Board of Revenue (FBR) said the VAT would not push up the prices of edibles, as General Sales Tax (GST) is already imposed on them and some essential commodities i.e. daal and atta would be exempted from it.

The economic analysts said VAT is also an indirect tax which would affect common man; contrarily, the government should impose tax on the direct income to receive the revenues.

Besides, burden of price hike should be shifted from the poor to tax-evaders by widening the tax net, they urged.

World investors show trust on Pak bonds

KARACHI: Investors displayed confidence on Pakistani bonds in world markets, as the insurance premium rate on five-year bonds edged down 26 percent to 6.5 percent, Geo News reported Thursday.

According to Credit Market Analysis (CMA), which organises and structures CDS (credit default swaps), bond quotes and valuation data, if the government of Pakistan sells five-year Euro bond on world level, it would have 6.5 percent insurance risk premium.

The insurance risk premium rate on Pakistani bonds was 8.9 percent on February 2, 2010, which perched on 6.5 percent on April 14, 2010.

According to experts, the balance of payments improved as the trade deficit shrank and foreign exchange reserves bulge; this has led to reduction in insurance risk premium on five-year bonds.

According the experts, the insurance risk premium can jump up in view of foreign investment, delay in expected aid and political instability.

China's economy up 11.9pc in first quarter

BEIJING: China's economy grew a blistering 11.9 percent in the first quarter, the government said Thursday, increasing pressure on Beijing to raise interest rates and loosen controls on its currency.

Gross domestic product in the world's third-largest economy maintained double-digit growth for the second straight quarter after expanding 10.7 percent in the last three months of 2009.

"We have got off to a good start this year," Li Xiaochao, spokesman for the National Bureau of Statistics, told reporters.

"The momentum of national economic recovery has further expanded, which has laid a good foundation for reaching the targets set for the whole year."

The number was boosted by a low base effect last year when the economy grew 6.2 percent, the slowest pace in more than a decade.

Growth in the March quarter was the fastest since the onset of the global slump and well above Beijing's target of eight percent for this year, which is seen as crucial in creating enough jobs to stave off social unrest.

The nation's closely watched consumer price index, the main gauge of inflation, rose 2.2 percent in the first quarter compared with the same period a year earlier, the statistics bureau said.

The increase was slower than in February when consumer prices rose 2.7 percent and below the government's inflation target of three percent for the year. Retail sales jumped 17.9 percent in the January-March period.

China's fixed asset investments, a measure of government spending on infrastructure and a key driver of the economy, jumped 25.6 percent year on year.

Industrial output from the country's millions of factories and workshops rose 19.6 percent.

Pak assures IMF of issuing sukuks worth Rs100b

ISLAMABAD: The government of Pakistan assured the International Monetary Fund (IMF) of issuing sukuk bonds worth Rs100 billion to take down the circular debts of various government departments, Geo News reported Thursday.

President Asif Ali Zardari also assured to play a role for Value-added Tax (VAT) in Sindh.

The IMF loan was increased to $11.3 billion in July last year and the central bank received a fourth tranche of $1.2 billion on Dec. 28.

The sources privy to Finance Ministry told Geo News that the government’s negotiations with the IMF for fifth tranche of $1.2 billion proved fruitful. Also, the working paper of the tranche would be presented to Pakistan in meeting of IMF’s Board of Directors on May 4 in Washington.

Two high officials from Federal Finance Ministry are expected to attend the meeting.

The sources further said Pakistan assured the IMF of bringing under control the fiscal deficit on receiving the Support Fund.

Dollar rises in Asia after China GDP, ahead of US data

TOKYO: The dollar rose in Asian trade Thursday on the back of robust economic data from the United States, while China's surging economy in the first quarter raised expectations of yuan revaluation.

The dollar firmed to 93.40 yen in Tokyo morning trade from 93.24 in New York late Wednesday. The euro dipped to 1.3649 dollars from 1.3656 but edged up to 127.48 yen from 127.33.

Stronger-than-expected US March retail sales data released overnight lifted the dollar, supporting views that consumer spending will boost growth in the first quarter of the year, Credit Agricole CIB analysts said in a client note.

March retail sales rose for the third straight month, by a greater-than-anticipated 1.6 percent.

The greenback will be supported by a positive tone in markets with the release of March factory data later Thursday, expected to show a 0.6 percent gain and strengthen the outlook for a sustainable recovery in the US economy.

China said Wednesday that first-quarter growth expanded 11.9 percent year-on-year, the fastest pace since the global financial crisis. Its consumer price index jumped 2.4 percent in March, in line with market expectations.

Dealers said the data underlined evidence of an overheating economy and highlighted the need for fast action to curb inflation threats.

The data fuelled "greater expectations of an imminent yuan revaluation as well as monetary tightening" in order to take the froth out of the economy, Credit Agricole CIB analysts said.

Asian currencies are likely to bounce from a yuan revaluation as well as from anticipation that other Asian central banks are moving to tighten their monetary policies, unlike their counterparts in advanced economies.

Singapore on Wednesday revalued its currency—the city-state's principal monetary tool—prompting speculation that China and South Korea may be next in line.

"Given this expectation, firm risk appetite, and more follow-through from Singapore foreign exchange move, the outlook for other Asian currencies remains bullish," Credit Agricole analysts said.

Australia, Malaysia, India, and Vietnam all hiked interest rates in recent months.

Asian markets boosted by US, China data

HONG KONG: Better-than-expected US consumer spending data and strong corporate results boosted Asian stocks Thursday as blistering Chinese growth figures increased pressure on Beijing to raise interest rates.

Comments by US Federal Reserve chief Ben Bernanke that the US would likely see a "moderate economic recovery" also helped the dollar as dealers grew more optimistic over the global recovery.

Shanghai rose 0.45 percent in early trade following the release of data showing China's economy grew 11.9 percent in the first three months of 2010, the second straight months of double-digit growth.

The government also revealed that the consumer price index, the main gauge of inflation, rose 2.2 percent in the same period, while retail sales jumped 17.9 percent in the January-March period.

The figures will stoke speculation that Beijing will increase interest rates to keep a lid on inflation and also loosen controls on its currency, which critics say is being kept artificially weak to boost exports.

Meanwhile Tokyo was 0.70 percent higher and Hong Kong was up 0.43 percent, while Sydney added 0.19 percent as investors welcomed US figures showing retail sales rose 1.6 percent in March, reflecting growing strength of consumer spending.

A separate report revealed consumer prices rose just 0.1 percent in the same month. US consumer spending is keenly watched as it is traditionally a key driver of the world's biggest economy.

The news came as Bernanke told Congress that economic demand would be enough to "promote a moderate economic recovery in coming quarters", adding that interest rates would be kept at super low levels for an "extended period".

Wall Street cheered the news and was also given a lift by JPMorgan Chase reporting a 55 percent jump in earnings as the banking giant appeared to continue its journey back to health after the financial crisis.

Comments from its chief executive Jamie Dimon further helped sentiment.

"While the economy still faces challenges, there have been clear and broad-based improvements in underlying trends," he said. "We believe these improvements will continue and are hopeful they will gather momentum, resulting in a strong recovery."

The Wall Street rise gave a cue to Asian markets, with Singapore up 0.21 percent and Taipei 0.48 percent higher.

The dollar firmed to 93.40 yen in Tokyo morning trade from 93.24 in New York late Wednesday. The euro dipped to 1.3649 dollars from 1.3656 but edged up to 127.48 yen from 127.33.

Oil was higher, with New York's main contract, light sweet crude for delivery in May, up 25 cents to 86.09 dollars a barrel.

Brent North Sea crude for May was 30 cents higher at 86.45 dollars.

Gold opened at 1,157.50-1,158.50 US dollars an ounce, up from Wednesday's close of 1,155.00-1,156.00 dollars.

Oil extends gains, climbs above 86 dollars

SINGAPORE: Oil prices extended gains in Asian trade Thursday, boosted by improving demand and strong company earnings results in the United States, the world's biggest energy user, analysts said.

New York's main contract, light sweet crude for delivery in May rose 25 cents to 86.09 dollars a barrel.

Brent North Sea crude for May was up 30 cents to 86.45 dollars.

A strengthening economic recovery in the United States and signs that oil demand was picking up there helped spur investor interest in the oil and other markets.

"The economic indices and (earnings) results from American companies are very good so a lot of money is coming into oil and the stock markets," said Ken Hasegawa, an energy desk manager with brokerage firm Newedge in Japan.

US firm Intel, which is the world's biggest computer chip maker, said Tuesday that its first quarter net profit rose nearly four-fold to 2.4 billion dollars.

The company also said it plans to hire more than 1,000 employees this year, highlighting its optimism for the chip market.

American financial giant JP Morgan Chase on Wednesday also reported a 55 percent jump in earnings to 3.3 billion dollars in the first quarter.

Hasegawa said robust company earnings results led to buoyant investor sentiment, noting that the New York Mercantile Exchange (Nymex), the world's largest commodity futures trading platform, posted record trading volumes on Tuesday.

New York crude could be heading for the "upper side towards 90 dollars", Hasegawa said from Tokyo.

Oil prices were also supported by the US Department of Energy's (DoE) weekly stockpiles report which showed a surprise drop in crude supplies, indicating stronger demand.

The DOE said crude inventories had dropped by 2.2 million barrels last week, confounding analysts' forecast for an increase of 1.1 million barrels.

SBP amends guidelines for freight forwarders

KARACHI: The State Bank of Pakistan (SBP) on Wednesday amended its guidelines for freight forwarders, which some exporters claim, give rise to the theft of export consignments.

Now name of the actual owner of the goods will appear in trade documents along with that of freight forwarder, transferring goods from the producer to the buyer, a circular issued by the central bank said.

“The master bill of lading, issued in name of the freight forwarders will now carry the name of exporters and details of the export consignment,” it said. Earlier, the shipping line was responsible for issuing the master bill of lading in the name of the freight forwarder.

Besides, the trade documents, including the house bill of lading, will be sent to the bank of the buyer by the exportersí bank, leaving no chance of any misappropriation, a senior central bank official said.

The State Bank made amendments in the guidelines, following hue and cry by the textile exporters over incidents of theft by the freight forwarders.

The freight forwarders are responsible for delivering goods from the factory to the buyerís chosen destination in a foreign country.

The Pakistani exporters have failed to realise the changes occurred in the way of doing international business.

Global buyers such as Wal-Mart, Nike, Gap and Levi Strauss want direct agreement with the freight forwarders, who, according to them, provide value-added services.