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Trade & Economy

Economic progress of Pakistan since 1947

  Pakistan has witnessed progress since independence when it comes to development of infrastructure and industries. Pakistan is recognized as a major textile exporter. Being an agrarian economy, the country is self-sufficient when it comes to food requirement, which is a plus factor. Through progress is seen with setting up of industries, infrastructure, commercial and residential properties, corruption and mis-management has made the progress slow. Political unrest and blame game …

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SMEs An effective tool for poverty alleviation

  The Small & Medium Enterprises (SMEs) considered as backbone of large scale industries and in fact can play an effective role in reducing poverty, which is increasing to an alarming scale in Pakistan. It is painful to see that even after 68 years of creation of Pakistan the dream of a peaceful, prosperous life with equal opportunities to every Pakistanis still seems to be a distant dream. It is …

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Low GDP: myth or reality

  One often hears statement like: 1) Pakistan is over populated, 2) size of its GDP is too small, 3) per capita income is minuscule, 4) a large percentage of population lives below the poverty line, 5) country has been surviving on borrowed money, 6) load shedding of electricity and gas is extensive and 7) despite being an atomic power, its survival is often threatened by whatever is happening in …

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Around 25 million people live in extreme poverty in Pakistan

  Every third Pakistani is living below the poverty line Poverty alleviation was one of the key objectives of the economic agenda of the PML (N) government and microfinance is the most effective instruments of poverty reduction. As per World Bank estimates, around 25 million people live in extreme poverty in Pakistan and the adverse impacts of global financial, food, and fuel crises posed multiple challenges to Pakistan’s rapidly evolving …

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High interest rates stagnate growth, increase inflation

  While announcing its monetary policy for next two months, the State Bank of Pakistan (SBP) decided last month to keep the benchmark interest rate unchanged at 10 percent. The analysts see no rationale to maintain the discount rate at 10 percent by the central bank as all fundamentals are in favor of a reduction in the interest rate. So far as inflation is concerned, the average Consumer Price Index …

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Monetary Policy: likely impact on inflation and interest rate

  In the last Monetary Policy decision, discount rate has been maintained at 10 percent against expectations that interest rate will reduce at the back of reduction in CPI, average CPI recorded at 8.6 percent in FY14. With declining trend of inflation and projections of SBP for single digit inflation, discount rate is expected to reduce further. For FY15, CPI is expected to remain between 7.5 percent and 8.5 percent. …

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Born of heavy industries in Pakistan – lack of capital a major obstacle

  Textile sector hit hard due to high interest rate, electricity, gas outages High interest rate, political instability, deteriorating law and order situation, frequent power and gas outages and high power and gas tariffs are not only hindering growth of investment but also putting an additional burden on the country’s industrial sector apart from squeezing the gross margins of industries. In Pakistan lack of capital is a major obstacle in …

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Pakistan can fetch substantial forex through export of services

  Boundaries between services and industry are changing fast, and about half of all services in modern industrialized economies are sold and bought while embedded in the form of goods. While the content and function of goods remain important, the designing, marketing, consultancy and advertising services claim a share of the value added to goods. Manufacturing, too, has important contribution from services, such as resource planning, warehousing, value chain analysis, …

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Poverty alleviation through creation of job opportunities

  It may be said that elected governments bother to introduce special schemes ensuring better job opportunities for educated youth and undertaking Benazir Income Support Program and the latest being Prime Minister Youth Business Loan scheme. However, all these may cater a few favorites or a limited segment of the society. The prime responsibility of the government is to create enabling environment that can usher new investment, creation of productive …

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E-Banking a model of good governance

  On-Line Banking, atms & telecash rule the financial world Although Pakistan offers tremendous opportunities for investment in the financial sector as the country still has a huge un-banked areas particularly the rural population, yet the telecom sector has come out to fill the gap by expanding the outreach even remotest parts of the country. Successful use of information technology in the financial sector is an example, which needs to …

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