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Pak Economy

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Pakistan economic survey 2011-12

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Agriculture sector posts 3.15 percent growth 

The agriculture sector posted a growth of 3.1 percent during 20110-12 mainly due to positive growth in agriculture-related sub-sectors, except for the minor crops.

According to the Economic Survey of Pakistan 2011-12 on Thursday, major crops accounted for 31.9 percent of agriculture sector and experienced a growth of 3.2 percent in fiscal year 2011-12 as against the negative growth of 0.2 percent in 2011. The significant growth in major crops was contributed by rice, cotton and sugarcane by 27.7 percent, 18.6 percent and 4.9 percent, respectively.
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Pakistan heading for new financial crisis

* Analysts say miniscule tax revenues, mismanagement and overgenerous subsidies mean country faces major financial crisis

Miniscule tax revenues, mismanagement and overgenerous subsidies mean Pakistan is heading for a new financial crisis, say diplomats and analysts, with this week’s budget unlikely to offer any respite.

The budget deficit stood at 6.6 percent of GDP last year, according to the State Bank of Pakistan (SBP), which warned that government borrowing was crowding out the private sector from access to credit.Read More »Pakistan heading for new financial crisis

Pakistan’s struggling economy

Abdul Wajid Khan

Pakistan’s economy is facing the worst time of its history and witnessing some serious jolts. Pakistan is struggling to counter its current economic instability. The major problems of our economy are the result of increasing inflation, constant depreciation of the rupee against the dollar, mismanagement, corruption and bad governance. The increasing prices of petroleum products, low growth rate, energy crisis, menace of terrorism, worsening law and order situation add insult to injury.
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IMF reforms: Sucking poor’s blood

Shaukat M Zafar

Globalization is not new but in recent years it has become the subject of an impassioned debate. Karl Marx had predicted that the relentless search for markets will alter older social structures. As he put it “all that is solid will melt”. That prediction is going to be proven to be true in the today’s scenario. The policy of the government is to make Pakistan a private sector-driven economy where the government will only regulate. But privatization in Pakistan has been proved to be very controversial. It has generated strong debates in Pakistan where it is perceived to have more negative impact. Although it is an efficient way of promoting competition and enhancing growth, yet it has been experienced that it makes the poor poorer by increasing unemployment and reducing access of the poor to basic goods and services through increase in prices. The vast majority of people are worse off now than before.Read More »IMF reforms: Sucking poor’s blood

Reko Diq project — exploiting own treasures

Khalid A Khokhar
Amongst dozens of ongoing mega development projects in Balochistan, Reko-Diq gold and copper mining project is considered to be a big national strategic asset that would transform Balochistan as the richest province in the country. According to experts involved in mining and exploration, some 12.3 million tons of copper and 20.9 million ounces of gold lie in the Reko Diq area (EL-5) in the Chaghi area of Pakistan’s southwest Baluchistan province – bigger than those evaluated at Sarcheshmeh in Iran and Escondido in Chile. The discovery heralded attraction of all the 12 major companies involved in mining & exploration business with the mining magnets started “behind-the-scene lobbying” for getting the contract at Reko-Diq from Balochistan Development Authority (BDA). After due deliberations, a Canadian and Chilean company Tethyan Copper Company (TCC) was given the licence for exploring copper, gold and other base metals in EL-5 area, by the government of Balochistan. Under the agreement, 75 per cent shares were given to TCC and 25 per cent to the BDA. Reports emerging from various sources indicate that the US $52 billion of natural deposit will be sold for just US $08 billion to the TCC. The mind-boggling question is why 75% of reserves are being given to get 25% back after investing 25% in (EL-5) project? According to reliable estimate, only a small part of the Reko Diq gold and copper mines (EL-5) have deposits worth US $270 billion. Two licences (EL-6 & EL-8 other bigger deposits in the same belt) were given to the same company (TCC) on a 100 per cent ownership basis and without any share to the government of Pakistan.
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Pakistani finance minister’s budget speech

Dr Ashfaque H Khan
The budget speech of the finance minister is an important piece of document as it contains the government’s views on the challenges besetting the economy in the foregoing year, the response of the government in addressing these challenges, and the various policies under consideration for the next fiscal year. The budget speech covers all the above elements.
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