One week after the IMF announced a staff-level agreement on a $6 billion, 39-month programme to support Pakistan’s economic policies the economic landscape has not changed for the better. The uncertainty that has gripped the country for more than two years, and which was billed to end after the...
THE State Bank shrugged off pressure from vested interests on Monday when it decided to raise the discount rate by a massive 1.5pc, sending shock waves through the business community that is already struggling with rising costs from inflation and devaluation, and must now prepare for even higher debt-service...
Should we expect any Chinese industry to relocate to Pakistan under the China-Pakistan Economic Corridor (CPEC)? And if it happens, which industries are likely to benefit from such relocation? Before we answer this question, it is important to understand why companies relocate. An industry would relocate to another city or...
AMERICAN online payment giant PayPal will not be coming to Pakistan, a Senate committee was told last week. Despite the government’s efforts to convince the company, which is a widely popular system supporting online money transfers, the IT secretary said it is not ready to enter Pakistan “due to...
A staff-level agreement has finally been reached with the IMF. A press note was issued from the IMF headquarters on May 12, 2019 confirming the willingness for a three-year Extended Fund Facility (EFF) to Pakistan. The size of the EFF is $6 billion. However, the agreement is 'subject to...
Did Hafeez Sheikh get the best possible deal from the International Monetary Fund (IMF) given Pakistan's unsustainable twin deficits, budget deficit estimated at 7.2 percent of GDP (though independent sources place it nearer to 8 percent) and a declining current account deficit of 9.58 billion dollars for the first...
It is a matter of some satisfaction that trade deficit of Pakistan has declined during the current year so far. According to the latest data released by the Pakistan Bureau of Statistics (PBS), trade deficit declined by about 12.82 percent (dollar 3.867 billion) to dollar 26.302 billion during July-April,...
Gas consumes are in for yet another price shock. The natural gas tariff is set to rise further, beginning the new financial year. Only a month after assuming power – in September 2018 to be exact – the PTI government had raised the gas tariff by a mammoth 143%....
Tax revenue may change through automatic response of the tax yield to changes in national income and/or through the imposition of new taxes, revision of the bases and/or the rates of the existing taxes, tax amnesties, stricter tax compliance and other administrative measures backed by legal action. Changes in...
All Pakistan Textile Mills Association (APTMA) seems to have pinned its hopes on PTI's government's new economic team to overcome the economic crisis now facing the country. According to Zahid Mazhar, Chairman APTMA of Sindh-Balochistan, "the new economic team is capable enough to bring Pakistan out the present alarming...

Opinion

crisis bank financing

Financing of external payments

The outstanding external debt of Pakistan crossed the century mark early this year. It stands as of the end of March 2019 at $105.8...