Wednesday , 18 October 2017

Tag Archives: IMF

Pakistan Can No Longer Ignore Its Weakened Economy

The government prefers to see a conspiracy when all evidence points to a looming economic crisis. On July 5, 2017, the Pakistani currency fell by over 3 percent in what was the currency’s largest decline in nine years. This was like the distant thunder that warns of a looming storm, but its importance was missed as all eyes were drawn …

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The Ghost of Circular Debt Past

The PML-N Government before assuming the reins of power in 2013 had made many a promise, including the eradication of load-shedding within months. After coming to power the deadlines kept being extended and promises were repeatedly broken. In 2013, the Government cleared the Circular Debt amounting to some Rs.480 Billion, and one hoped that the menace of load-shedding and the …

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Are more taxes being collect under provincial system?

Are more taxes being collect under provincial system?

The 18th Amendment to the Constitution and the 7th National Finance Commission (NFC) award supporting it give the provinces greater control over their fiscal affairs, but has that increased revenue collection? This post compares how Sindh, Punjab, and Khyber Pakhtunkhwa (KP) have raised tax revenue following devolution. Pakistan’s tax-to-GDP ratio in 2016 stood at 12 percent. According to a recent …

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How will we feed 10 billion people by 2050

This article is published in collaboration with IMF. Agriculture and food markets are plagued with inefficiencies that have dramatic consequences for the welfare of the world’s most vulnerable populations. Globally, farm subsidies amount to over $560 billion a year—equivalent to nearly four times the aid given to developing countries by richer ones. Major emerging-market nations have increased subsidies rapidly, even …

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Pakistan may surpass 5.2% growth rate in 2017 – World Bank

The World Bank has revised Pakistan’s growth rate upwards to 5.2% for fiscal year 2017 and 5.5% for 2018. It previously estimated growth in Pakistan’s gross domestic product (GDP) at 5% and 5.4% for FY17 and FY18, respectively. The report ‘Global Economic Prospects; weak investment in uncertain times’, states that the uptake in activity is spurred by a combination of …

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Pakistan’s debt dance

Pakistan's debt dance

The federal and provincial governments are expected to throw caution to the wind in 2017 and spend liberally on development schemes. This is to score points for performance before they return to voters in 2018. Will this new wave of public spending translate into higher growth? It could marginally. Will it increase inflation? Yes. Will that lead to an interest …

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China, Pakistan decide to bypass US Dollar

Standard Chartered has taken the lead in conducting a roadshow in Pakistan to inform businessmen that hurdles to trade with China in local currencies – Pakistani rupee and Chinese renminbi – have been razed. Until now, the two countries were trading in dollars, which caused hurdles in the way of banking transactions for traders. The two nations signed a currency …

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Economic Reforms: Pakistan’s PM congratulated by IMF MD

International Monetary Fund (IMF) Managing Director Christine Lagarde has congratulated Prime Minister Nawaz Sharif on the completion of country’s IMF-supported economic reform programme. In a letter addressed to the prime minister the IMF chief said, “Pakistan has achieved a great deal over the past three years, and I congratulate you and your colleagues on the completion of your IMF-supported economic …

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The Brexit confusion continues

The Brexit confusion continues

In an asymmetrical neckline, Theresa May declares her asymmetrical vision. Asymmetrical because there is no balance between so many of her pronouncements; indeed, some are quite contradictory. There is no point at which opposing views are squished together into some kind of Blairite compromise. Nor is it the economy, stupid: it’s about identity. It is a rightwing power grab that …

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Pakistan’s road to economic recovery

Pakistan has just completed its three-year IMF-supported economic reform programme. This is a notable achievement in itself, but particularly so for a country that has had to resort to IMF support regularly and often abandoned its reform programmes before completion. Significant headway has been made under this programme. That said, a lot also remains to be done to put the …

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