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Tag Archives: Economy

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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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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Potential of agriculture sector

  Agriculture is the backbone of Pakistan’s economy. Pakistan is one of the largest producers of fruits and vegetables in the world besides being the largest overseas exporter of cotton and other agri products. It accounts for around 21.4 percent of GDP and about 45 percent of Pakistan’s population depends directly on agriculture. It is claimed that Pakistan is always governed by big landlords yet agriculture sector remained worst hit …

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Pakistan ignoring driving engine of economy

  Economic analysts are clearly divided into two distinct groups, one that believes small and medium enterprises (SMEs) are the real driver of economy and another that believes that conglomerates are the real creators of value. Some management gurus believe it is only the perception but both are so minutely intermingled that one just can’t survive without other. They also believe that better these enterprises understand needs of each other …

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India faces challenges to become a dominant country in global trade

  India is the tenth largest economy of the world with GDP growth of 5.3 percent. India has USD 295 billion in reserves on as December 2012. India’s literacy rate is 74 percent which has grown year on year. The country is a major player in the global market when it comes to Trade. The textile, automotive, banking and technology industry is considered the best in the world. Major multinationals, …

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Performance of Pakistan in 2014

  When the PML-N came into power, the economy wasn’t in very good shape. In order to reduce the damage to the economy, the government derived a plan along with the support of the IMF and the main focus of the government was to bring about energy reforms, to improve the external balance and to stabilize public finance. The plan, if successful over the tenure of the government is likely …

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Oil price collapse – event of the year 2014 have multiplier effects on developing economies including Pakistan

  The steel fall of international oil prices have a combined effect both on the oil based economies as well as on the developing economies but in different directions. The oil price situation has developed an interesting situation similar to what it happens even in the province of Sindh before the arrival of Monsoon season as the date farmers pray for late start of the rainy season as the rain …

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Mixed economic performance in 2014

  Overall fiscal year 2014 was a better year for the economy. As for the actual behavior of various macroeconomic indicators, real GDP during financial year 2014 grew by 4.1 percent compared to 3.7 percent in the previous year and the target of 4.4 percent is better close to meet. The fiscal deficit was indeed contained at 5.5 percent. Growth saw a modest revival, especially in manufacturing. Manpower, for instance, …

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