Stories about economy

As Asian economies take centre stage, how can Pakistan cash in?

The economic map of Asia is changing at a fast pace, shaped by trade disputes between the United States (US) and its trading partners, and by commercial developments in Asia, especially in China. The Trump administration is using tariffs, and the threat of higher tariffs, to leverage its bargaining positions and extract trade concessions through negotiations with China.  While policymakers in the US and China are struggling to come up with a joint communique, business executives are going to the drawing board to decide what to do next.  A key decision for these businesses is what to do with ...

Read Full Post

Why should Pakistan change its export policy?

In the current inhospitable economic climate prevailing in Pakistan, leading to rising inflation alongside a worsening trade and fiscal deficit, the nation desperately needs a solution to these growing list of problems. While it is fairly simple to understand that an increase in exports will benefit the economy, the method through which this can be achieved is a slightly more tricky question to answer. Exports will help pave the way towards economic prosperity by improving Pakistan’s Balance of Payment (BoP), but policies which try to lead Pakistan in this direction can only be implemented once we address the question: why does Pakistan have ...

Read Full Post

Why is the Indian government ignoring all the economic red flags?

Owing to a “weaker than expected outlook” for domestic demand in India, the International Monetary Fund (IMF) has projected that India’s growth rate will undergo a downward revision by 0.3% for the fiscal year 2019-20. As the Indian media and government keeps deflecting rising economic concerns, the massive economic slowdown that seems to impact a vast majority of the Indian public has led to the ringing of alarm bells in some quarters. The government statistics for the first quarter of the year (Q1) showed that the Gross Domestic Product (GDP) grew by 5%, the lowest Q1 growth rate India has ...

Read Full Post

Why PM Imran Khan should first worry about his own country and then Kashmir

While Pakistan has tried to raise the Kashmir issue on the global stage, Prime Minister Imran Khan has to realise that that is really all he can do. The Foreign Office and Shah Mahmood Qureshi will now continue to raise a voice for the people of Indian-occupied Kashmir (IoK) on the international platform, and Imran should now focus on the domestic issues in Pakistan. After all, that’s what he was elected to do. But this seems unlikely. Here are a few things that Imran should focus his attention towards instead. Economic turmoil The current budget deficit has soared to Rs3.45 trillion, ...

Read Full Post

Putting the Balochistan budget on the right course

Whenever a new government assumes power, either at the centre or in a province, they often state that the economic woes are inherited from the financial challenges of previous years. The Balochistan Awami Party (BAP) led coalition government in Balochistan seems to be repeating this mantra. However, there can be no denying of the fact that the present government inherited a deficit of over Rs62 billion, in addition to billions in liabilities and unforeseen expenditures. But what led the Balochistan government to this position, where the blame is being passed from one party to the other? The policies enforced by both ...

Read Full Post

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 ...

Read Full Post

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 ...

Read Full Post

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, ...

Read Full Post

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 ...

Read Full Post

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 ...

Read Full Post