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Pakistan Economy & Development

Discussion in 'South Asia & SAARC' started by BlueOval, Jul 27, 2010.

  1. Bangali

    Bangali FULL MEMBER

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    Re: Pakistan Economy & development !!

    the biggest problem affecting pak economy is tax evaders are in the government

    and people keep voting them in power
     
  2. Adil Baloch

    Adil Baloch Info Sec - Baloch Republican Party FULL MEMBER

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    Pakistan have an Economy hahahaha ok
    If today USA stop aid Pakistani economy will collapse.
    Where there is war Pakistan get Aid.
     
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  3. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    Re: Pakistan Economy & development !!

    same here + Corruption :dude:
     
  4. layman

    layman Colonel STAR MEMBER

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    Pakistan pays $396m to IMF

    [​IMG]



    KARACHI: Pakistan paid $396 million to the IMF on Tuesday, which was the 24th instalment of the loan obtained under standby agreement.

    The repayment liability of debt and interests to the IMF and other lenders including Paris Club was over $6.5 billion in FY13.

    The current reserves of the State Bank till November 13 were $3.6bn.

    “The repayment of $396 million to the IMF has produced negative result and the greenback rose to as high as Rs108.35 on Tuesday in the inter-bank market,” said Atif Ahmed, a currency dealer.

    The State Bank said $5.256 billion were paid so far under the SBA while the total payment to the IMF since July 2011 was $6.045bn.

    “After the current repayment, remaining amount due under IMF/SBA until Sept 2015 is SDRs1.484bn ($2.270bn at current exchange rate),” said the SBP spokesperson.


    More Info
     
  5. layman

    layman Colonel STAR MEMBER

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    Finance Ministry releases details of IMF extended fund facility

    [​IMG]

    ISLAMABAD: The Ministry of Finance has released details of the ‘extended fund facility’ program with the International Monetary Fund in September 2013.

    The text of the released report is as follows:

    Pakistan entered into an extended fund facility (EFF) program with IMF on September 4, 2013. It is a 36-month extended arrangement under the

    Extended Fund Facility (EFF) for SDR 4.393 billion (US$6.64 billion, 425

    percent of quota).

    First tranche of SDR 360 million ($544.5 million, 34.8 percent of quota)

    became available on September 6 2013, and the remainder will be evenly

    phased thereafter subject to quarterly reviews.

    An Extended Fund Facility with IMF provides assistance in support of

    comprehensive programs that include policies of the scope and character

    required to correct structural imbalances over an extended period. It has a comparatively longer repayment period of 4½–10 years, with repayments in twelve equal semiannual installments.

    Some of the factors, which led Pakistan to enter into this facility and introduce economic reforms, were as follows:

    Substandard economic performance during the past few years where GDP

    growth averaged only 3 percent over the past five years, insufficient to

    significantly improve living standards or fully absorb the growing labor force, with a rising inflation rate of over 8%.

    Domestic private investment dropped from 14 percent of GDP in 2007/08 to

    an estimated 10.9 percent of GDP in 2012/13. Weak private sector credit

    growth contributed to the decline.

    State Bank of Pakistan gross reserves dropped to US$6 billion (under 11/2 months of imports) as of end-June 2013.

    The 2012/13 fiscal deficit (excluding grants) is estimated to be over 81/2 percent of GDP, well above the original budget target (4.7 percent of GDP) due to slippages on both revenues and expenditures. The revenue shortfall of

    11/4 percent of GDP relative to the 2012/13 budgets is largely explained by the underperformance in tax collections in the previous fiscal year, inadequate tax administration, and a slowdown in economic activity. Higher expenditures

    (23/4 percent of GDP) reflect higher energy subsidies.

    The energy sector remained saddled with considerable problems that have

    led to unreliable electricity supply and large fiscal costs, including price distortions, insufficient collections, costly and poorly targeted subsidies, inadequate governance and low efficiency in energy supply and distribution, regulatory inadequacies, and insufficient investment in new energy production and modernization. As a result, power outages (“load shedding”) averaged around 8–10 hours a day, constraining production and employment. Output losses were estimated at 2 percent of GDP annually.

    To overcome these challenges, an economic reform program was introduced

    by the present government under the Extend Fund Facility to strengthen

    macroeconomic and structural policies, reduce economic imbalances, and

    foster sustained inclusive growth and employment generation. It has the

    following objectives and elements:

    Objectives:

    • Improve the medium-term growth outlook and move toward sustainable fiscal and external positions.

    • Provide macroeconomic stability and improve economic performance during the term of the program.

    Elements:

    • Raising growth gradually to near 5 percent by 2015/16 as macroeconomic stability is entrenched and structural reforms are pursued.

    • Bringing inflation down to 6-7 percent range by 2015/16, from the current level of 8.3 percent.

    • Increasing central bank reserves to over 3 ½ months of imports by 2015/16.

    • Reducing the fiscal deficit to 3 ½ percent of GDP by 2015/16 from an estimated 8.0 percent in 2012/13, with provincial governments contributing their fair share of the fiscal consolidation process.

    • Energy Sector Reforms

    • Liberalizing the trade regime and reforming public sector enterprises through restructuring and/or privatization.

    • Improving the business climate.

    • Strengthening the tax system.

    • Protecting the most vulnerable from the direct and indirect impacts of reform measures.

    The policies underlying this program have the firm support of Prime Minister Sharif, the cabinet and provincial government leaders as indicated by the recent decision to this effect by the Council of Common Interest.

    Progress in the implementation of the program will be assessed through

    quarterly reviews, quantitative performance criteria, indicative targets, and agreed structural benchmarks (Annexure 1).

    An IMF mission, led by Mr. Jeffrey Franks, visited Pakistan during October 28-November 8, 2013 to conduct discussions on the first review of Pakistan’s

    IMF-supported program under the Extended Fund Facility (EFF). The mission was encouraged by the overall progress made so far. The mission was also pleased with the strong fiscal performance in the first quarter of 2013/14 and the steady implementation of the government’s structural reform agenda. The IMF mission staff will prepare a report for the IMF Executive

    Board on the first review under Pakistan's EFF that is tentatively scheduled for consideration in late-December. Upon approval, SDR 360 million (about US$550 million) would be made available to Pakistan.

    More Info
     
  6. Rock n Rolla

    Rock n Rolla Lt. Colonel STAR MEMBER

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    Pakistan hopes to raise $2bn in bond issue

    NEW YORK: Pakistan’s economic performance has enabled it to enter the international bond market after a break of seven years and it is expected to raise more or less $2 billion on Wednesday, said Finance Minister Ishaq Dar.

    Addressing workers of Pakistan Muslim League-N in Brooklyn, New York, on Monday night, he said bond managers in Dubai, London, Toronto and New York, had shown a keen interest in Pakistan’s bond issue during the roadshows.

    “A final decision on bond issuance could come as early as Wednesday,” he said.

    He said bold policy steps taken by the government to address the challenges of security and energy crisis would bring promising outcome.

    Agencies add: Pakistan is hoping to raise $2bn through its issue of five- and 10-year bonds.

    The country, rated Caa1/B- by Moody's/S&P, has launched a $1bn five-year tranche at the final yield of 7.25 per cent and a 10-year portion at 8.25pc.

    Final terms came at the tight end of revised guidance of 7.25pc-7.375pc for the five-year note and of 8.25pc-8.375pc for the 10-year note and tight to initial price thoughts of mid-7pc and mid-8pc respectively released on Monday.

    Barclays, Bank of America Merrill Lynch, Citigroup and Deutsche Bank are the lead managers on the 144A/Reg S issue, which was expected to price later on Tuesday.

    Meanwhile, Pakistan's roadshows for the bond issue received an overwhelming response in the international markets.

    Spokesman for the Ministry of Finance told APP news agency that the roadshows, led by the finance minister, were held in Dubai on April 2, London on April 4 and in New York on April 7.

    The second team, led by Finance Secretary Waqar Masood Khan, conducted roadshows in Singapore, Hong Kong and Los Angeles.

    The spokesman said the finance minister called Prime Minister Nawaz Sharif and informed him about the progress made so far. The prime minister expressed his satisfaction over the process, and hoped the economic policies of the government would be successful in future, too.

    Pakistan hopes to raise $2bn in bond issue - DAWN.COM
     
  7. VCheng

    VCheng RIDER GEO STRATEGIC ANALYST

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    http://www.economist.com/news/asia/...s-manufacturing-hub-if-you-want-it-done-right

    Pakistan’s business climate
    If you want it done right
    How a small Pakistani city became a world-class manufacturing hub

    [​IMG]
    Keeping her eye on the ball

    PHOTOGRAPHY is fiercely restricted inside Khawaja Masood Akhtar’s factory in Sialkot, a small city in northern Pakistan. His products—top-of-the-range footballs—must be zealously guarded until the time comes for his customers, big international sports brands, to unveil their offerings for the new season. Until then the latest ball designs are subjected to a battery of tests in windowless laboratories. They must endure everything from hard poundings from mechanised boot studs to repeated dusting with fungus spores. The quality of the factory’s output is so high that Adidas chose it as one of only two in the world to manufacture the balls used in the World Cup in 2014.

    Pakistan has precious few globally competitive exporters, but a good number of them are clustered in Sialkot, an out-of-the-way city of fewer than 1m people in north-eastern Punjab. It supplies the world with all sorts of sporting gear, from hockey sticks to judo suits, as well as leather goods and surgical instruments. Sialkoti Lederhosen are all the rage in Bavaria. The city’s 8,000-member chamber of commerce says Sialkot exported $2bn-worth of goods last year, or 9% of the country’s total exports of $22bn.

    Sialkot’s success is especially surprising as it was cut off from its natural economic hinterland, the Kashmir Valley, when the subcontinent was split between India and Pakistan in 1947. Yet it is doing much better these days than the rest of the country. Its exports have remained reasonably steady for the past two years, even as those of the country as a whole have fallen by 12%. How are firms from such a backwater thriving, ask the exporters of Lahore and Karachi, while they struggle?

    Pakistani businesses tend to blame the government for the country’s feeble export performance. Domestic and foreign investors alike are put off by the breakdown of law and order in Karachi, the commercial capital, and the storm of Islamic militancy across the rest of the country (a suicide attack on a police training college on the outskirts of the city of Quetta claimed over 60 lives this week). Manufacturers must endure crippling shortages of electricity in the summer and gas in the winter. Antiquated land administration and customs systems make buying property and exporting goods tiresome. It can take almost three years to settle a commercial dispute. Pakistan ranks a lowly 144th out of the 190 economies assessed in the World Bank’s latest “Doing Business” report.

    Mr Akhtar, however, dismisses these “lame excuses”: any half-decent entrepreneurs, he insists, should be able to find their own solutions to such problems. That is what the businessmen of Sialkot have done, at any rate: instead of waiting for politicians to stump up for local infrastructure, they have built it themselves. The Chamber of Commerce set up the country’s first privately financed dry port, where goods can clear customs before being shipped to a conventional port. It later charged members a special fee to raise funds to contribute towards the resurfacing of the city’s once-appalling streets. Local businesses also funded the construction of the city’s airport, the only private one in the country. It boasts both the longest and hardiest runways in the region, and handles 53 flights a week. That helps bring in foreign buyers who do not fancy the wearisome drive from Lahore. Some of the investors in the airport are now on the verge of launching their own airline.

    As well as determination, Sialkot’s businessmen have had their fair share of luck. The city happens to specialise in niche products, which are relatively insulated from competition from China. The nearby towns of Wazirabad and Gujrat, once known for their cutlery and electrical goods respectively, have struggled against a tide of cheap Chinese exports. But even Sialkot is not immune to competition. Local manufacturers lost their grip on the world market for badminton rackets when they failed to anticipate the switch from wood to aluminium and graphite. If anything, however, that has only made the Sialkotis more vigilant. The local business community is now trying to set up a technology university in the city.

    From the print edition: Asia
     
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  8. Sathya

    Sathya Lieutenant FULL MEMBER

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    CPEC , 100 containers without excise duties are entering Pakistan...

    I wonder local industries can withstand the Chinese scale of economy in manufacturing.
     
  9. Butter Chicken

    Butter Chicken 2nd Lieutant FULL MEMBER

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    What local manufacturing?It is already dead.In 20 years,Mandarin will taught in the schools of Rawalpindi
     
  10. stephen cohen

    stephen cohen 2nd Lieutant FULL MEMBER

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    Last edited: Nov 14, 2016
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  11. VCheng

    VCheng RIDER GEO STRATEGIC ANALYST

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    Nah man. Let them be happy in their delusions. Let us talk more sanely here.
     
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  12. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

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    I am done engaging with them on economy matters. There really is no point.

    99,9% don't even understand what GCF is... much less why CPEC will not address it in any major way.
     
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  13. MilSpec

    MilSpec Mod Staff Member MODERATOR

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    Bliss land is good... if something makes the pdfer chaps happy then let em be.
     
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  14. Agent_47

    Agent_47 Admin - Blog Staff Member MODERATOR

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    Actually, what is the state of the economy. I see them growing 4%-5%. How good is it wrt them? How bad is debt ?
     
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  15. Nilgiri

    Nilgiri Lieutenant GEO STRATEGIC ANALYST

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    They are doing better than before it must be said. However there are some serious underlying problems they are not addressing or even ignoring. Debt fuelled investment is one....human capital training is another. Another major one is their own private banking....they just do not have equivalents of HDFC etc which means GCF and underlying capacity addition is very sensitive and vulnerable to all kinds of shocks when they come.

    The discourse is also very "uni-centric"...i.e if only one particular thing is fixed, that this will be the panacea to all the problems. This has been crystallised by the CPEC issue I find now....something else will replace it when CPEC is found to not be the cure-all....and the cycle will continue unless there is an attitude change. It may be a deeper psychology at work, stemming ultimately by being taught and conditioned to form their identity in opposition to the "one" solitary monolith that is India. Hence why their military dominates their society and why any discussion ultimately re-routes to India. Very few of them are capable of addressing complex multi-centric discussion and I don't expect this to change any time soon. Its spillover into their policy making is very telling as well.
     

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