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Op-Ed

Op-Ed section will have latest editorial and analysis…

Rising trade deficit

deficit

Pakistan is facing current account deficit of around $7 billion during the current fiscal year thanks to heavy debt servicing, rise in oil prices and declining exports.The State Bank of Pakistan, in its recently issued second quarterly report on the state of economy,blamed the recovery in international oil prices for growing current account deficit in Pakistan. However, falling exports, rising ... Read More »

Panamagate case vs economy

panama papers

A political storm has been created by leaders of various political parties after the Panama case judgment. The members of the opposition parties are finding it as a national obligation to comment on the judgment, the so-called anchors have become law experts and the business community is in a quandary what will happen to the economy in the emerging situation.The ... Read More »

Concessions for auto sector

Brazil auto sector projects

The Pakistan Automotive Manufacturers Association has asked the government to change a law, which provides relief to the used cars importers but forces the Original Equipment Manufacturers to pay 17 percent general sales tax at the retail stage in addition to the income tax.The used car importers are paying low duties and taxes at fixed rates. The association also alleges ... Read More »

Effects of Panamagate case on economy

Panama-papers (1)

The business community has heaved a sigh of relief as the Supreme Court has announced its much awaited verdict in Panamagate case. The stock market went up and some business leaders even claimed that the decision was in the interest of the economy as uncertainty was causing adverse effects on business activities in the country.The chiefs of various business organizations, ... Read More »

For safety of online transactions

TRANSACTIONS

The government always fails to act in time due to one reason or the other or may be it lacks mechanism to get real time information. The tax to GDP ratio in Pakistan is the lowest in the region and failure of the government to adopt block chain technology in time can be considered a routine matter. In a country ... Read More »

Question of GDP growth

gdp-growth

According to the international financial institutions and independent economists, the economy of Pakistan has the potentials to ensure annual growth rate ofup to 10 percent for next 30 years and no one would be able to stop the country from entering a middle or higher income group of countries.However, the Institute for Policy Reforms, in its half-yearly economic review, has ... Read More »

Pakistan’s electricity woes

ELECTRICTY

With the rise of temperature in various parts of the country, the electricity shortfall has soared up to 6,000 megawatts, promoting unscheduled load shedding from 12 to 16 hours a day. The officials put the electricity demand at 19,000 megawattagainst overall power supply of around 13,500 megawatt, suggesting a shortfall of 5,500 megawatt.The gap is filled through so-called load management ... Read More »

Chinese investment in textile sector

pak China

Officials of a visiting Chinese delegation have expressed the desire to set up textile units in Pakistan. According to them, the Chinese business community is facing high cost of production as well as environmental issues and Pakistan is an ideal place for the relocation of textile industry.There is no better idea thansetting up multidisciplinary, multiple-format, diversified textile enterprises in Pakistan ... Read More »

General economic performance

economy

According to various international organizations, key economic indicators of the country are improving, the consumer price index has dramatically come down, foreign exchange reserves are increasing and a growth rate of 5.5 percent has been achieved. Reports also indicate overall increase in the purchasing power of the citizens which is evident by 25 percent increase in sale of motorcycles, at ... Read More »

Potentials of IT sector

download

The IT sector is the future of Pakistan’s economy, but it is may be the least priority of the government. The sector, which includes software development, smart phone applications, games, networking and various other programming, has the current annual income of $3 billion. The total earnings of the country was $30 million one and half decades ago, but it has ... Read More »

Water disputes with India

WATER PROJECT

The water crisis is potential risk to not only the country’s economy, but also for the life. At a time when India has stubbornly been violating the Indus Water Treaty by building new dams on the rivers, the successive governments in Islamabad have also showed highest degree of negligence in conducting a sound analysis of trans-boundary water issues. The lethargic ... Read More »

Need to woo investors

investors

The development of infrastructure is necessary to attract direct foreign investment. The country is already facing trade deficit and continuous decline in remittances sent by the expatriate Pakistanis, leaving little room to spare enough funds for developmental projects. The government is signing loan agreements with international financial institutions one after another to keep the foreign exchange reserves at certain level. ... Read More »

US interest in Pak economy

Pak-US

At a time when the country’s economy is recovering from years of regression, two contrasting news reports appeared recently in the media, showing differences of opinion in US diplomacy toward Pakistan. One report is in threatening tone, saying that to break the stalemate in Afghanistan, the United States must break Pakistan’s pathologies. It alleges that out of 20 terrorist organizations, seven ... Read More »

Economy in perspective

economy

The Asian Development Bank has projected 5.2 percent growth rate in the country’s gross domestic product for the current fiscal year and 5.5 percent for the next year. However, to reap the benefits of the growing economy, it has called for structural reforms in various sectors, including bank has highlighted the potential benefits of the China Pakistan Economic Corridor, but ... Read More »

IMF’s concern over trade deficit

imf

During their recent meeting with the Pakistani negotiating team, officials of the International Monetary Fund have expressed concerns over the widening fiscal deficit of the country and advised the government to create export surplus. Question is who is the IMF to advise the sovereign government of Pakistan to do this and that? This is the case. When you ask for ... Read More »

Banking sector demands

TAX REFORM 3

The corporate tax rate is around 30 percent in Pakistan on net taxable income of a company. At least 15 percent tax is charged on the gross amount of royalties or under the head of technical service fees for non-residents and 30 percent for t he payments under presumptive tax regime. Every new federal budget brings a string of news ... Read More »

Challenges to economy

economy

Pakistan’s international debt are likely to reach $110 billion in coming years, posing a big challenge for financial experts to create an equilibrium between debt-servicing and development plans. The dwindling flow of remittances into the country from expatriate Pakistanis and rising oil prices in the international market have already started showing their visible presence. However, there are some positive signs ... Read More »

Export sector woes

exports

Pakistan’s export sector has been under performing for the last four years since the present government took over in 2013. Strangely enough, corruption was apparently rampant during the previous Pakistan People’s Party government, but exports picked up to a comfortable level of over $25 billion. The Pakistan Muslim League-Nawaz, which contested the election on the slogan of business, business and ... Read More »

SBP’s quarterly report

state-bank-of-pakistan

According to a quarterly report issued by the State Bank, the economy of Pakistan has the potential to grow up to 6 percent during the current fiscal year. The projection is based on possible recovery of the agriculture sector thanks to productive spending by the government and prediction of better produce this year. The country is facing current account deficits ... Read More »

Yet another loan programme

loan

The government has signed yet another agreement with the World Bank to get half a billion loan for financial and social sectors reforms. At least $300 million are earmarked to support the government efforts to promote an inclusive and transparent financial sector and raise the financial access throughout Pakistan up to 50 percent by 2020. A portion of funds will ... Read More »