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Problem of rising trade deficit


According to newspaper reports, the trade deficit of the country are likely to cross $50 billion mark as the import bill has risen up by 20 percent to reach $48.5 billion in the first 11 months of the current fiscal year.On another note, the exports have dropped to $18.5 billion in the 11 months despite announcement of an export package ... Read More »

Textile sector issues


The All Pakistan Textile Mills Association will launch a protest campaign from next months to highlight the challenges faced by the industry. The exports have been falling for the last three years, production capacity of the textiles mills has been affected by frequent power outages and the textile package announced by the prime minister has yet to hold ground. The ... Read More »

Attracting foreign investment


A good thing is that Finance Minister Ishaq Dar has invited Saudi entrepreneurs to invest in Pakistan and avail liberal economic opportunities of the government but bad thing is that he is not offering them a package of incentives or anything else. It is the habit of politicians in this country to issue statements and play a zero sum game ... Read More »

Question of macroeconomic stability


According to newspaper reports, the International Monetary Fund has cautioned the government of the risks to the much publicized macroeconomic stability,which the government claimed to have achieved during the last four years.The lending agency fears the rising burden of debt, which has reached Rs21.2 trillion or 66.6 percent of the gross domestic product, could tarnish the positive outlook of the ... Read More »

Additional burden of loans


The government is considering singing a $600 million loan program with the Asian Development Bank to continue the pace of energy sector reforms and maintain the country’s fast depleting foreign currency reserves to a certain levels.The government had to consult the Manila-based lending agency for the energy sector reforms and maintain the foreign exchange reserves in the wake of growing ... Read More »

Promising economic variables


Finance Minister Ishaq Dar has set the GDP growth target at 6 percent for the fiscal year 2017-18 and 7 percent for the next year, saying the country will continue to travel on the road of progress and prosperity. However, the independent economists do not see any visible progress during the current fiscal year except the normal inflow of investment ... Read More »

Problems with corporate taxes


According to financial experts, the ratio of aggregate corporate taxes in Pakistan has reached 40 percent with imposition of super tax entering its third year. The rate is the twice the average tax in Asia as bonus shares as well as retained reserves are taxed as penalty rather than success. It appears the imposition of super tax on bonus shares ... Read More »

Rising trade deficit


The government has signed dozens of trade agreements with various friendly and unfriendly countries, but exports are nose-diving and imports are sharply increasing, spilling the trade deficit up to 42 percent year-on-year during the last 11 months of the current fiscal year. The country showed the worst economic performance during the previous Pakistan People’s Party government, but strangely enough the ... Read More »

Expansion of SCO


Pakistan has formally joined the Shanghai Cooperation Organisation, an organization of eight Eurasian countries, crafted by Russia and China in the aftermath of the break-up of the Soviet Union. The organization deals with issues such as terrorism, separatism and extremism. Ironically, India has also been admitted into the organization despite the fact it is using state terrorism to suppress the ... Read More »

Agriculture sector woes


Pakistan’s agriculture share to the gross domestic product is nearly 24 percent and employs about 43 percent of the country’s workforce, but performance of this vital sector has been slowing down for the last one decade, pushing the country into the list of nations threatened by food insecurity. The overall economic scenario of the country is improving. However, the state ... Read More »

Issue of circular debt

public debt

According to newspaper reports, the government has decided to acquire Rs41 billion from commercial banks to partially retire the circular debt which has been piled up to Rs 402 billion during the last four years. The current government had cleared around Rs 480 billion in circular debt after coming to power in June 2013 which was accumulated during the Pakistan ... Read More »

India’s warning on foreign investment


The Indian media is buzzed with news reports these days that Pakistan is likely to be turned into a client state of China in the near future. On another note, the China Pakistan Economic Corridor is being seen as a game changer in the region and lifeline of the Pakistan’s economy which will transfigure the lot the nation. An alleged ... Read More »

Let real estate sector thrive

People stand in front of residential buildings in Shanghai

The real estate sector is thriving and is working as a driving force to stimulate the economy and that also without any government help and grant. At least 80 major industries are directly or indirectly associated with the real estate sector, including construction industry and many allied industries. However, the government is comes up with one step or the other ... Read More »

Challenge of growing debts

public debt

In its latest Global Economic Prospects report, the World Bank has highlighted the challenges faced by the economy of Pakistan amid growing debts and contingent liabilities. Though the bank projects Pakistan’s economic growth at 5.5 percent in the next fiscal year due to private sector investment, increase in energy supply and improvement in security situation, it also warns against rising ... Read More »

Need to shift to renewable energy

Renewable energy unit

As China, Russian, Germany and many other nations are enhancing their electricity generation capacities by shifting their focus from coal and nuclear on to the renewable energy, Pakistan is banking all its hopes on the coal power projects to cater to the needs of its industrial sector. The government has formally commissioned its second coal-fired power plant in Sahiwal with ... Read More »

Economy vs peace


Pakistan is the second largest economy in South Asia after India and has been achieving new successes despite border dispute Afghanistan, cross border firing on the line of control with India and growing tense relations with best friend of the past, Iran. The government is making all out efforts to achieve the fastest growth rate in the regional economies as ... Read More »

Implications of rising debt burden


According to newspaper reports, the external debt of are reaching $79 billion by the end of fiscal year 2016-17 amid challenges of a fragile external payments position and growing political instability in the country. The government has planned to offload debt to GDP ratio by 50 percent in one and half decades, as gross public debt crossed over Rs 2 ... Read More »

Achieving economic stability


Will Pakistan ever achieve economic independence is a million dollar question as most of its policies are based on foreign assistance, especially on the Chinese loans. The Chinese influence on the economy is growing and some experts believe the move will bolster economic independence of the country. However, others argue the country is heading toward attaining fiscal independence without giving ... Read More »

Railway needs attention

Pakistan railways

Railway is one of the barometers of the economy. However, the Pakistan railway has been passing through a deterioration process for the last many decades due to negligence and apathy of the government authorities. Dozens of train routes have been suspended or permanently closed and many railway tracks are either stolen or scraped thanks to rampant corruption in the department. ... Read More »

Potentials of agriculture sector


According to newspaper reports, Zarai Taraqiati Bank and National Bank of Pakistan will launch a loan programme for farmers with holdings of up to 12.5 acres at a reduced rate of 9.9 percent from July 1, 2017. In the federal budget, the government has enhanced the target of agriculture credit by 43 percent up to Rs 1 trillion for the ... Read More »