Monetary policy and interest rates: what does the trend show?

  There seems to be positive sentiment in the economy with the new government taking charge in May 2013. There are high hopes that the economy will flourish, law and order situation will improve, inflation will subside and development projects will create more jobs. The sentiment is reflected in business growth and the KSE-100 index trading at record high of 22,700 points and going strong. Despite the government approaching the …

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Declining rupee value may affect GDP growth rate

  The next Monetary Policy is to be announced by the State Bank of Pakistan on September 13, 2013 which is likely to decide the future course of policy rate in the days to come, keeping in view the rate of inflation as the tightening or softening of the monetary policy is usually linked with the ups and down of the inflation rate. If this theory is taken into consideration …

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Economic growth: perception may be different from reality

  With announcement of the budget, it has been widely documented that inflation will be on a rise. We have already witnessed devaluation with the government resorting to the new IMF program. Dollar has crossed Rupees 100 per USD and is expected to further slide reaching Rupees 110 per USD by the close of this year, hence expected to reflect in higher prices across the board. No relief has been …

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Menace of poverty

  It would not be wrong to say that poverty in our country is the result of low economic growth, relocation of industry, high food inflation, rising joblessness, warlike conditions, stagnant industry, slowing services sector, energy shortfall, poor governance, gender discriminatory practices and non-availability of credit to the micro and small-scale industry. Poverty is not the issue only in Pakistan however, it is essential to address this issue at the …

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Economy of Pakistan since 1947

  Pakistan’s achievements in income, consumption, agriculture and industrial production are extremely impressive and have lifted millions of people out of poverty levels. However, the achievements do pale when looked against the missed opportunities. Pakistan faced numerous economic issues in 1947 because India refused to give Pakistan its share of sterling reserves. The situation was so bad that Pakistani government couldn’t pay salaries to its employees. Pakistan was way behind …

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Deteriorating health of Pakistani rupee

  The rupee is presently being traded at around Rs104 to a dollar in the open market and at around Rs101 in the interbank market. The country’s falling foreign exchange reserves and current account deficit continues to widen keeping the rupee under pressure. Since inception of new government in June, the rupee has witnessed a rapid devaluation of about 2.4 percent. It means within two months. Though International Monetary Fund …

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Trend of shopping malls in Pakistan

  Pakistan economic growth might be slow but Pakistan’s retail market is one of the fastest growing economies in the world. Pakistan presents a huge opportunity to the world, to use as a hub provided it provides a few basic facilities. Pakistan’s retail market has experienced enormous growth in last decade. The most significant period of growth for the sector was between year 2004 to 2008, when the sector revenues …

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The future of Islamic banking

  Islamic Banking and Financing has gained a foothold both nationally in Muslim countries and internationally in the financial world. For years, many Islamic banks have registered double-digit growth rates, surpassing their conventional peers. At first glance, all seems well for the Islamic banking industry. There is ample room for growth as Islamic banking rarely exceeds a 3rd of total market share, even in GCC countries and Malaysia. Many potential …

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The export potential of Pakistan

  Achieving its annual exports target had been a struggle for the government due to the diverse problems the country is currently facing. The target of $27 billion for the financial year 2012-2013 was a difficult target for the government to meet, and is made worse due to the power shortages in the country and the present global economic situation. It was estimated that Pakistan would be likely to miss …

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Analyzing the aviation industry

  Despite rising costs, increase in taxes, financial burden and weak economic state, the demand for air travel has perpetually remained high. With the current law and order issues in Pakistan, people aim to travel abroad for peace and unwind whereas others move permanently through immigration. More and more Pakistanis in the past few years are placed in Saudi Arabia and Middle East increasing the demand for air travel. The …

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