Pakistan will allow imports of vegetables from India such as chili peppers, cabbage, and carrots due to crop losses. Leaders at an APEC meeting in Japan discussed plans for free trade in the Asia-Pacific region, but divisions between advanced and emerging economies remained. The IMF approved reforms that increase the influence of Brazil, Russia, India, and China by reducing the power of European members like Belgium and Germany.

1. Weekly News
Submitted By: Pooja Khullar

2. Pak to import vegetables from India due
to Crop Loss
• Pakistan government has allowed import of vegetables
from India, amongst other countries, in a bid to tackle a
sharp rise in its prices
• Among the items whose import will be allowed through
the Wagah land border are green chili, capsicum,
cabbage, radish, ladyfinger, cauliflower, ginger and
carrot.
Payment for imports will be made in accordance with
procedures, including those for acquisition of letters of
credit from specified banks, laid down by the State Bank
of Pakistan.

3. Amid economic strains, APEC trumpets
Free Trade
• Asia-Pacific leaders trumpeted new plans for a free trade
area linking the world's fastest-growing region, but
stubborn divisions between advanced and emerging
economies undercut their show of unity.
• Just before the final communiqué of the Asia-Pacific
Economic Cooperation (APEC) was released in
Yokohama, Japan, China's president warned that the
global economy was confronted with "significant
uncertainties" and protectionism was on the rise.
"Advanced economies have to cope with serious
unemployment problems, while emerging market

4. Conti…
• economies are confronted with asset price bubbles and
inflationary pressure," Hu Jintao told the other leaders of
the 21-member grouping.
• The APEC meeting followed hot on the heels of the G20
summit, where a vague agreement showed scant unity
on how to deal with the current account imbalances
between China and the United States in particular that
risk destabilising the global economy.
• The risk posed by economic fragility, and the price that
financial markets will extract if it is not addressed, was
underscored at the end of last week as it emerged that.

5. Conti…
• deeply indebted Ireland was in talks about a funding
rescue

6. US flags concern over India trade
barriers
• US concerns that India's complex system of import
tariffs, "opaque" foreign investment rules and non-tariff
barriers were slowing bilateral trade and investment.
• India is only the U.S 14th biggest trading partner and
obstacles, from outsourcing controversies to market
access to the Doha world trade round, have put the
brakes on faster integration.
• Bilateral trade opportunities for India and the U.S in
sectors like energy, infrastructure and medical
equipment.

7. IMF reform gives BRIC countries more
voice
• Formal approval of long-discussed reforms of the IMF
increases the weight of Brazil, Russia, India and China
on the executive board.
• The reform, the most fundamental overhaul in the fund's
65-year history, was approved and means that European
members, including Belgium and Germany, will lose
clout in the organization.
• The changes also give more financial responsibility to
the four countries, which have been agitating for more
international recognition of their developing economic
prowess.

8. Conti…
• The breakthrough agreement on the reforms was
reached last month in Kyongju, South Korea, where
negotiators from the new world economic block - the
G20 - came to an agreement about reapportioning IMF
voting rights.

9. China to play role in General Motors IPO
• Among the banks helping General Motors with its initial
public stock offering next week are two identified by
initials only: ICBC and CICC.
• Americans uncomfortable with U.S. government
ownership of General Motors may want to hear more:
One of those banks is the Industrial and Commercial
Bank of China, one of China's four big central
government banks. The other, China International
Capital Corp., is a joint venture run primarily by Central
Huijin Investment Ltd., an arm of the state, and Morgan
Stanley.

10. Conti…
• This is the first time Chinese government banks have
participated in a major U.S.-issued IPO, according to
IPO tracking firm Dealogic. The banks are listed as co-
managers in the offering, meaning they will sell a portion
of the new shares.