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Pak Economy

Important information about Pakistan economy

Pak Economy: Monetary policy, economic growth and inflation

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The approach to implement a pro-growth strategy has not been addressed by the central bank. The trade-off between inflation and growth can be avoided if the economy can improve its supply-side performance. As the pace of the economy slows down, the unemployment rate rises

By Dr. Noor Fatima

Traditionally, monetary policy is an instrument of macroeconomic stabilisation; however, the matter to ponder upon is whether it has actually helped in lowering inflation and promoting growth in developing economies. The outcome in this context is not promising for Pakistan, which is trapped in the predicament of high inflation and low growth. A central bank is responsible to control the money supply and maintain financial stability through various tools of monetary policy. The State Bank of Pakistan (SBP) by following tight monetary policy stance has hiked the discount rate to curtail inflation. But, this policy has failed to deliver the desired results in the country as inflation has reached an uncontrollable level.Read More »Pak Economy: Monetary policy, economic growth and inflation

Pakistan: a forgotten economy

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Dr Ashfaque H Khan

Until 2007, Pakistan was regarded as one of the four fastest growing economies in Asia, the others being China, India and Vietnam. Goldman Sachs, an international investment bank, included Pakistan, along with Mexico, South Korea and Vietnam, in the club of the “Next Eleven” (N-11), on the basis of their potentials to emerge as major economic powers.
But in just three years, the Pakistani economy has ceased to be of interest to international forums.
At the recently concluded G20 Summit in Seoul, the United Nations Economic and Social Commission of Asia and the Pacific set up an experts’ group to present the Asia-Pacific perspective on the current global economic challenges,. I was one of the members of the group assigned the responsibility to prepare the views of the Asia-Pacific region. The group discussed the economies of countries including Bangladesh, Sri Lanka, Laos, Cambodia and Vietnam. Pakistan’s economy never made it to this particular discussion agenda. Read More »Pakistan: a forgotten economy

ISLAMABAD: SBP reforms to eliminate role of institutional investors in National Saving Schemes

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* Containing inflationary pressure major objective of monetary policy

* Current account deficit expected to widen during FY11

State Bank of Pakistan (SBP) reforms are aimed at phasing out role of institutional investors in National Saving Schemes, review of the Export Finance Scheme (EFS) and Long-Term Financing Facility (LTFF), so as to ensure removal of distortions by narrowing the difference of interest rates on subsidised schemes with the market interest rates and making them more focused to achieve objectives for which they are created.Read More »ISLAMABAD: SBP reforms to eliminate role of institutional investors in National Saving Schemes

Pakistan & global competitiveness

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Ehsan Mehmood Khan

Global Competitiveness (GC) Report 2010-11 published by the World Economic Forum and Pakistan’s GC Index therein is a true mirror image of our standing in today’s globalized economy. Global Competitiveness is based on 12 pillars falling under three main factors. Pakistan’s ranking in all these factors is appallingly low. Pakistan’s overall ranking in Global Competitiveness Index is 123 amongst 139 countries. To add to ones’ despair, Pakistan was 101 out of 133 countries last year and has dropped by virtually 20 points this year. Other than Nepal and East Timor, those behind Pakistan are all sub-Saharan countries to include Madagascar, Malawi, Swaziland, Nigeria, Lesotho, Côte d’Ivoire, Mozambique, Mali, Burkina Faso, Mauritania, Zimbabwe, Burundi, Angola and Chad.Read More »Pakistan & global competitiveness

State of Pak economy

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ARTICLE  (October 31, 2010) : The success story of a country depends upon accomplishments on four fronts namely, Political (strong democratic set up for the well-being of the people of the country), economic (socio-economic development with prosperity across the board), social (elimination of social evils and ensuring social stabilisation with peace and harmony in the country) and technology (institutional framework through a breakthrough with innovation and invention as logistical support to all-round development of the country).

However, this piece looks at the broad framework focusing on economy of Pakistan. Recently, the Annual Report of State Bank of Pakistan for 2009-10 has been released. It presents a forthright analysis of the state of affairs of the economy of Pakistan. It generates food for thought and provides insights for forward thinking.Read More »State of Pak economy

The battle for Pakistan… —By Shaukat Tarin

Pakistan is waging a war on more than one front. While success in its ongoing struggle against extremism is critical to the country’s wellbeing, the other war that it should be fighting, but is not, is essential for its survival. That war is against vested interests, which prevents taxation of the elite and derails the best laid-out plans for improving the efficiency of the government as well as of the public sector. Unless Pakistan succeeds in the latter (broad-based, equitable taxation), it will continue to meet only partial success in the fight against militancy. Read More »The battle for Pakistan… —By Shaukat Tarin

ISLAMABAD: Agricultural scientists working on ‘sugar alternative’

By Ijaz Kakakhel
Researchers and agricultural scientists are experimenting on commercial production of a plant (Stevia) as alternate to sugar at National Agriculture Research Council (NARC), which will enable the country to get rid of sugar crises permanently.

The plant was imported from Canada on experimental basis, which is 300 fold sweeter than sugar, said Dr Shahid Masood Chief Scientific Officer NARC while talking to Daily Times.

It is especially for sugar patients because it has zero calories. At present “Stevia” is planted on about 2 acres area and has about 2000 plants. He said the plant has different species having different types of sweetness.Read More »ISLAMABAD: Agricultural scientists working on ‘sugar alternative’

Default with dignity or die in disgrace —Amjad Ayub Mirza

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Angry at the fact that the monies so urgently needed for the post-floods reconstruction drive were being swallowed up by the black hole of debt, which was mostly accumulated during the tenures of unrepresentative governments, many considered it unjust to be asked to repay the $ 3 billion in annual debt servicing for the accumulated $ 55 billion debt

As Pakistan celebrates a sombre Eid-ul-Fitr overshadowed by the shock and grief of our losses in the recent floods, Gulbaz Masih of the Dutch charity Good Angels has boarded a flight from Amsterdam in the Netherlands to Islamabad. He will be escorted to a campsite near Charsadda in the Khyber Pakhtunkhwa province bordering the Taliban hotbed tribal belt that separates Pakistan from Afghanistan, where he will be distributing food packages among the flood victims.Read More »Default with dignity or die in disgrace —Amjad Ayub Mirza

Gwadar Port may be given to China

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By Amir Mateen
 GWADAR: The news that Gwadar port is all set to be taken away from the Port of Singapore Authority (PSA) and is likely to be given to the Chinese may have repercussions that go much beyond its white sand shores.

Official sources confirm that “an understanding to that effect has already developed at the highest levels but it will take a while before the legal and administrative constraints are removed.” The biggest constraint remains the agreement with the PSA, which was given the right to run the port for 40 years. However, official sources are confident that the PSA had given them sufficient grounds to revoke the agreement. Apart from its failure to bring a single commercial ship to the Gwadar docks, the PSA has not invested even a fraction of the $525 million it had committed to spend in five years. Read More »Gwadar Port may be given to China

Socio-economic implications of flood crisis in Pakistan

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Pakistan’s worst ever flooding disaster has damaged twenty percent area of the country, which is roughly equal to the size of England. It affected twenty million peoples, intensified the energy crisis and may create fears of social unrest in the near future.

This humanitarian disaster left more than five million people homeless and around ten million in urgent need of humanitarian aid. According to the United Nations, the disaster has affected close to 20 million people, killing 1,600 and leaving 1.2 million homes damaged or destroyed.
Read More »Socio-economic implications of flood crisis in Pakistan