Stories about economy

Taking from the poor, giving to the stock brokers – who is PTI’s priority?

The incumbent government of Pakistan Tehreek-e-Insaf (PTI) has just increased the price of petrol by Rs4.26 per litre and it intends to introduce more indirect taxes in the upcoming budget in order to minimise the deficit in the budget. However, surprisingly, recently the PTI government approved a package of around Rs20 billion for stock exchange brokers and it was termed as a package to end the uncertainty in the Pakistan Stock Exchange and give confidence to the stock market. However, since the package is actually being given to the wealthier stock brokers, it begs the question that at a time when ...

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Federal minister of style: 4 great appearances by Faisal Vawda that nobody asked for

Pardon my political naivety, but who asked Mr Faisal Vawda to do anything more than his actual job as the minister of water resources? Regardless, we have been blessed with an impressive array of performances in Pakistan’s robust political theatre this year. It seems unjust to not acknowledge the many contributions of Vawda, who has worked hard to establish himself as more than just a federal minister. The greatest of these performances are being listed here for the convenience and amusement of our nation’s proudest patriots or theatre-enthusiasts. 1. The punisher Some may argue that it’s unusual for an armed federal minister ...

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Why the time to invest in Pakistan is now

Being a capital market participant, I have seen quite a few ups and downs during the past decade. I have experience of evaluating a large number of companies listed at the Pakistan Stock Exchange (PSX). I believe, at this point in time, most of the listed companies are trading well below their fair price, thus, offering good return potential and strong dividend yield. Historically speaking, every time our stock market experienced a downturn, it bounced back with more power. Even though the downturns are often abrupt, recovery usually takes a while. Nonetheless, once our stock market comes out of crisis, ...

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Pakistan’s economy: Rising through the storms

In Pakistan, the financial year ends on June 30th. However, since the conventional year is about to end, we look back at how the new government fared at handling the economy and also make some policy prescriptions along the way. The incumbent government is being judged rather harshly on its performance in the first few months. Let’s just make this clear: there is no silver bullet that could end Pakistan’s economic woes within 100 days. Given that the government has inherited a ‘broken’ economy, I’d say that they have performed quite well. A common way to find out how well a country ...

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Real estate, the new mafia: How can we fix Pakistan’s housing market?

The new Pakistan Tehreek-e-Insaf (PTI) government’s priority is housing. Providing five million houses would certainly pick up the economy since around 40 industries would be throttled up to meet the demands of around five million houses. This is indeed commendable. Even though the target of five million houses seems a bit far-fetched, one could argue that setting up a lofty goal would actually keep the government on its toes. Even achieving a small percentage of the mighty five million would be a relief for the homeless and relevant industries. For the purpose of land for this scheme, government is eyeing ...

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Is Saudi Arabia “taking over” Pakistan?

Earlier this year, when the election campaign in Pakistan was running at fever pitch, I found myself listening to an old classic by The Who. The song was Won’t Get Fooled Again and the line that got me pondering was “meet the old boss, same as the new boss”. I shuddered when I heard this line while watching parties push their candidates. It was literal horse-trading as politicians scrambled to capture the number of seats required to secure the government for themselves. We are barely a few months into the new government and people are already questioning and debating the current government’s decisions. For example, take the ...

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Should Saudi Arabia be a part of CPEC?

From the word go, the Pakistan Tehreek-e-Insaf (PTI) government has been under a heavy burden of expectations from all sides. As a result, they are trying to satisfy every front as quickly as they can. However, it seems that this is proving to be too much for them and they are creating all sorts of confusion. China-Pakistan Economic Corridor (CPEC) is one such project where this confusion is still brewing. Recently, news has been circulating that Saudi Arabia will be joining CPEC. It is still unclear what role they would play, whether they will be a strategic partner, an investor ...

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For how long will you blame the previous government for your failures, PTI?

It has been only seven weeks since the Pakistan Tehreek-e-Insaf (PTI) government took over the reins of the country and it is already evident that the government, especially its finance minister, has no clue of the direction the economy is taking. It is, of course, the fault of the PTI leadership, who brainwashed its followers into believing that Imran Khan could change the face of Pakistan by eliminating corruption and recovering the looted money immediately after winning the elections. Perhaps the slogans were deliberate; Imran and his associates knew that it was impossible to achieve so much in such a ...

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From ‘unity, faith, discipline’ to ‘faith, faith, faith’

“O, what a fall was there, my countrymen! Then I, and you, and all of us fell down, whilst bloody treason flourished over us…” These enduring words of Shakespeare describe best the cruel hand dealt to Pakistan, by internal and external forces alike. One is filled with an innate feeling of dejection when one observes how with the passage of time, our societal ethics and standards tumbled in almost all walks of life. Pakistan is amongst the few unfortunate countries that have regressed, not progressed, with time. Let us start with governance. We all have read the bleak history of the ...

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They say the gas price hike will not affect the common man, but that’s not true

At no other time in Pakistan’s recent history were people’s expectations as high as they were after the 2018 General Elections. The Pakistan Tehreek-e-Insaf (PTI) chief and his associates had practically promised the moon to the masses in their pre-election campaign. Murad Saeed had even guaranteed that half of the $200 billion in foreign bank accounts of corrupt Pakistanis, would be brought back within two days after the formation of his party’s government. But Imran Khan rewarded this fake degree holder and miracle man (who had allegedly given and passed three exams in just half an hour) by making him ...

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