WASHINGTON: The International Monetary Fund will give Pakistan $450 million in emergency flood aid and disburse funds during September, IMF Managing Director Dominique Strauss-Kahn said on Thursday.

Severe flooding in Pakistan has destroyed cropland and livestock and displaced millions of people, causing damage the government has estimated at $43 billion, or almost one quarter of the South Asian nation’’s 2009 GDP.

“The IMF … will be the first agency likely to disperse very rapidly money which is absolutely needed,” he told reporters after a week of discussions with Pakistani officials.

“The most important thing is to keep the Pakistani economy on track.”

Talks with a delegation led by Finance Minister Abdul Hafeez Shaikh on the terms of an $11 billion IMF loan program left him satisfied with the country’’s commitment to reforms, the IMF chief said.

Under the 2008 IMF loan program, Islamabad pledged to implement tax and energy sector reforms and give full autonomy to the State Bank of Pakistan.

“What is important is what was decided by the government to do to improve the economic situation, especially in the tax sector but in other fields also,” said Strauss-Kahn.

“What I heard from the authorities that they really want to move on with the program,” he said.

Shaikh said Islamabad remained committed to loan terms, including fiscal authority and tax reforms.

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WASHINGTON: The World Bank on Thursday raised flood aid to Pakistan to one billion dollars while the IMF approved 450 million dollars in emergency financing to help the nation cope with its worst-ever humanitarian disaster.

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KARACHI: The trade activities remained almost flat on Thursday at Karachi Stock Exchange (KSE) as the benchmark KSE-100 Index posted a slight gain of 28 points to finish at 9,762.

Opening with green numbers, the KSE-100 Index remained in the positive zone throughout the session as investors took cautious positions in energy and cement sectors.

The trade volume remained thin at 40 million shares with HUBCO topping the list of volume leaders at Rs36.80, up by paisas 18.

Meanwhile, KSE-30 Index slipped 5 points to close at 9,636.

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SINGAPORE: Oil was steady near $74 on Thursday as investors turned their attention to upcoming U.S. employment reports, following gains of almost 3 percent a day earlier after positive manufacturing data lifted spirits across markets.

U.S. crude for October delivery CLc1 slipped 8 cents to $73.83 a barrel by 0704 GMT, after a jump of $1.99 on Wednesday. ICE Brent LCOc1 dipped 33 cents to $76.02.

Manufacturing in top oil consumers the United States and China accelerated in August, reports showed on Wednesday, raising hopes record petroleum stockpiles would fall and reviving confidence across markets.

The focus over the next two days was set to turn to lagging U.S. employment indicators, including weekly jobless claims, on Thursday. The nation’’s nonfarm payrolls probably fell for a third straight month in August, a survey showed, ahead of a monthly report due on Friday.

“The market was just seeking optimism and this came from strong manufacturing data,” said Serene Lim, a Singapore-based oil analyst at ANZ.

“Some traders started the new month with new positions. It was a buying opportunity, especially for those who were bullish in the long term. However, the market will be in a wait-and-see mode especially before the payrolls report this Friday.”

U.S. private employers unexpectedly cut 10,000 jobs in August, a report by payrolls processor ADP showed on Wednesday.

But markets shrugged off the negative news from the labour market, after Institute for Supply Management data on Wednesday showed U.S. factory activity rose in August for a 13th straight month.

Investors had been expecting the ISM reading to show a decline in manufacturing from July, which would have fit with recent data showing a slowdown in U.S. growth.

Wednesday’’s rally in oil prices was earlier triggered by data showing China’’s manufacturing industry accelerated in August, expanding for an 18th consecutive month.

Japan’’s Nikkei average rose 1.5 percent on Thursday and China’’s key stock index rose 1.3 percent, after the U.S. and Chinese manufacturing data eased investor worries about the global economy.

Global stocks posted their biggest percentage gain this summer on Wednesday, in tandem with a broad-based commodities rally.

But oil market fundamentals were not as constructive. U.S. crude stockpiles rose three times as much as expected in the week to Aug. 27, adding 3.4 million barrels, as refineries cut usage rates, the Energy Information Administration said on Wednesday.

Distillate supplies fell 739,000 barrels, going against forecasts for an increase and snapping 13 straight weeks of gains, while gasoline inventories declined 212,000 barrels, roughly in line with analyst forecasts, the EIA data showed.

EIA statistics showed total U.S. petroleum stockpiles rose last week to a new high of 1.143 billion barrels, up from 1.139 billion the previous week, for the highest inventory levels since at least 1990, when the EIA began tallying weekly stocks data.

“The fundamentals will still weigh down the market,” Lim said. “Cushing inventories are still relatively high.”

The large build in U.S. total crude stockpiles could deepen the contango in crude markets, when front month futures trade at a discount to later months.

The spread between first- and second-month crude oil contracts ended at $1.50, narrowing from $1.60 on Tuesday, which was the widest level since early June. U.S. crude was also trading close to the biggest discount to Brent crude since May.

Tropical Depression Nine in the eastern Atlantic Ocean strengthened into Tropical Storm Gaston late on Wednesday as it continued on a westerly path that could head for the Caribbean.

Gaston was expected to gain force slowly over the next 48 hours and could become a hurricane by Sunday or Monday. Some early computer models showed it tracking into the Caribbean, but it was too early to say if it would enter the oil-rich Gulf of Mexico.

Hurricane Earl in the western Atlantic was upgraded to a Category Four hurricane again, and was expected to sideswipe the U.S. East Coast from the northern Carolinas, making landfall on Canada’’s Atlantic coast on Saturday.

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WASHINGTON: The International Monetary Fund and Pakistan will release a statement on Thursday on ongoing discussions of the flood-ravaged south Asian country’’s $11 billion IMF loan, the fund said.

The statement at 10:15 a.m. EDT (1415 GMT) in Washington by IMF Managing Director Dominique Strauss-Kahn and Pakistan’’s Finance Minister Abdul Hafeez Shaikh follows a week of talks against the backdrop of severe flooding in Pakistan that has destroyed cropland and livestock and displaced millions of people.

Shaikh told reporters last week that Pakistan wanted to remain on track with the 2008 IMF loan program, under which the country pledged to implement tax and energy sector reforms and give full autonomy to the State Bank of Pakistan.

But the minister also said he would seek understanding from the international community about the troubles Pakistan faced from the catastrophic floods.

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ISLAMABAD: The World Bank has increased funding to help Pakistan cope with catastrophic flooding by $100 million, to a total of $1 billion, the bank said in a statement on Wednesday.

“The World Bank is committed to helping the people of Pakistan during this time of need and has made US$1 billion available to finance immediate recovery needs and longer-term reconstruction,” the statement quoted World Bank President Robert Zoellick as telling Pakistani Finance Minister Hafeez Shaikh in Washington.

The funds are being diverted to flood use from money already earmarked for Pakistan. They will come from the International Development Association, the bank’’s fund for the poorest countries, and are concessional and carry no interest payments, the statement said.

Zoellick also told Shaikh that continued economic, institutional and governance reforms were critical to maintaining donor confidence.

“We need to respond strongly to the crisis at hand, but we need to do it without losing sight of important economic reforms,” he was quoted as saying.

“Renewed commitment to governance and fiscal reforms will be important to mobilize domestic revenues and ensure that funds reach the poor people it is intended for. The response of donors to the floods will also depend on the government’’s ability to deliver in this area,” he said.

Shaikh is part of a delegation visiting Washington for discussions with the International Monetary Fund about Pakistan’’s $11 billion IMF loan program.

While vowing to remain on track with the 2008 IMF loan program, under which the country pledged to implement tax and energy sector reforms, the minister also said he would seek understanding from the international community about the troubles Pakistan faced from the catastrophic floods.

Pakistani Information Minister Qamar Zaman Kaira said on Wednesday the country would register economic growth of just 2.5 percent in the year to June 2011 because of the impact of flooding, trimming an earlier 4.5 percent target.

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KARAHCI: Cost of the transportation of relief goods and relocation of flood-affectees to safer places has been feared to go further up due to surge in diesel prices by Rs 1.57 per liter, Geo News reported.

According to details, the Oil and Gas Regulatory Authority (Ogra) changed the prices of petroleum products with effect from September 1st.

The price of diesel has been increased by Rs1.57.

According to a notification issued by Ogra, the price of petrol was decreased by Rs0.48 per litre to Rs67.26. High octane blending component (HOBC) price went down to Rs79.85, by Rs0.49.

The sale price of kerosene was jacked up to Rs65.57per litre, up Rs0.72. The price of light diesel oil was increased to Rs62.67, by Rs1.32 per litre.

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SYDNEY: Australia’’s economy surged 1.2 percent in the three months to June, the biggest jump in three years, official figures showed on Wednesday, sending share prices and the local dollar sharply higher.

Annual growth clocked 3.3 percent, the Australian Bureau of Statistics said, smashing analyst forecasts of a 2.8 percent rise over the year and 0.9 percent from the March quarter.

“Without a doubt, Australia currently has one of the strongest economies in the advanced world,” Commonwealth Securities chief economist Craig James said.

The fastest increase since 2007 came mainly from construction and scientific and technical services, as well as mining, easing concerns over a “two-speed” economy where the roaring resources industry leaves other sectors behind.

“This was a very strong figure in just about all aspects. This economy is looking less two-speedish by the day — more one speed, and that speed is fast,” said Stephen Roberts, chief economist at Nomura.

The benchmark SP/ASX 200 rose 1.67 percent to 4,477.9 points on the news, after hitting a 10-day high of 4,479.9, while the Australian dollar was at 89.69 US cents, up three-quarters of a US cent.

Analysts said the figures also raised the prospect of renewed interest rate rises after the Reserve Bank put an aggressive series of hikes on hold in June, with the official cash rate at 4.50 percent.

“On the back of this GDP number, it certainly increases the likelihood” of a rise, said BNP economist Dominic Bryant, predicting an upward move by November.

Consumer spending rose 1.6 percent, surprising analysts who expected a smaller rise with households affected by the interest rate rises, while exports were 5.6 percent higher.

“These are an outstanding set of figures that all Australians can be proud of,” said Treasurer Wayne Swan. “Prime ministers elsewhere would kill for a set of outcomes such as these,” he added.

Australia’’s economy has been dubbed the “wonder from Down Under” after avoiding recession during the financial crisis and recovering strongly since, helped by booming resources exports to Asian countries such as China.

Unemployment sits at 5.3 percent, against 9.5 percent in the United States and 10 percent in Europe, while figures released this week showed the lowest current account deficit in eight years and a record jump in company profits.

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SINGAPORE: Oil stayed near an eight-day high above $75 on Monday as sustained momentum from Federal Reserve Chairman Ben Bernanke’’s speech last week boosted Asian stock markets.

Japanese shares jumped more than 3 percent while the yen fell as the Bank of Japan held an emergency meeting to curb a rise in the Japanese currency that threatens a fragile economic recovery.

Oil prices also received support from increased hurricane activity in the Atlantic Ocean, with storms expected to follow paths closer to the United States.

U.S. crude for October CLc1 rose 3 cents to $75.20 a barrel by 0352 GMT, having earlier approached Friday’’s peak at $75.59, the highest intraday price since Aug. 19. ICE Brent for October LCOc1 rose 2 cents to $76.67.

Oil gained 2.5 percent on Friday following a speech by Bernanke that calmed fears of a double-dip recession. Prices earlier in the week had dropped to an 11-week intra-day low of $70.76.

“The stock markets in Asia are very good at the moment, and that’’s supportive for the crude oil market,” said Ken Hasegawa, a commodity derivatives manager at brokerage Newedge in Japan.

“For the next two months, hurricane information will also be supportive, and if there is a supply disruption, then the price goes to $80.”

Other commodities also extended sharp gains on Friday, lifted by a downward revision to U.S. growth that was not as severe as anticipated.

U.S. gross domestic product growth for the second quarter was revised down to only 1.6 percent, from 2.4 percent, the Commerce Department said on Friday.

Many economists had forecast an even bigger downward revision to 1.4 percent growth, compared with 3.7 percent in the first quarter. But most still do not believe the economy will slide back into recession and say the most likely prospect is for continued slow expansion.

In remarks prepared for delivery at a Fed conference, Fed Chairman Bernanke said the central bank was ready to take further steps if needed to spur the stumbling economy.

“Stimulus would be good support for this market, but there is still no power to move prices to $85 or $90,” Hasegawa said.

Hurricane Earl was expected to sweep past the Virgin Islands and Puerto Rico as a major hurricane on Monday, before turning towards the northwest to weaken and approach the mid-Atlantic U.S. coast, the National Hurricane Centre (NHC) said in its latest advisory.

On the heels of Earl, an area of low pressure in the central Atlantic Ocean had an 80 percent chance of becoming a tropical cyclone in the next 48 hours, according to the NHC. It was still too early to determine whether this system would take a similar track to hurricanes Danielle and Earl, forecast to stay well away from the oil-rich Gulf of Mexico.

Money managers cut net long crude oil positions on the New York Mercantile Exchange to 73,475 in the week through Aug. 24, the Commodity Futures Trading Commission said on Friday, from 108,874 in the week to Aug. 17.

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KARACHI: Pakistani stocks ended at a two-and-a-half month low on Monday in dull trade as investors sold on worry about the economic costs of a month of flooding.

Most investors were also on the sidelines as they awaited the outcome of talks between the International Monetary Fund (IMF) and the government, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.86 percent, or 82.29 points, lower at 9,516.42 on turnover of 36.63 million shares.

“Rising economic uncertainty over flood losses was the main reason for the selling pressure,” an investment analyst said.

The KSE-index has lost 8.8 percent since the floods were triggered by unusually heavy monsoon rain at the end of July.

In the currency market, the rupee ended weaker at 85.63/68 to the dollar compared with Friday’’s close of 85.60/65 amid higher import payments.

Dealers said the rupee would be range-bound in the short-term but expected pressure in the medium-term.

The rupee fell to a record low of 85.80 on July 12 amid high demand for dollars from importers as well as on debt repayments.

In the money market, overnight rates rose to 12.50 percent, compared with Friday’’s close of between 12 percent and 12.20 percent. Dealers said the next scheduled inflows were due on Friday amounting to 32 billion rupees ($373.7 million).

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