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Home / Author Archives: Dr. Aftab Afzal

Author Archives: Dr. Aftab Afzal

Dilemma of Pakistan’s external financing

According to newspaper reports, the foreign loans of the country have steadily been piling up as the current account deficit are increasing day by day and external financing needs a whopping $13 billion during the next fiscal year. In a bid to decrease imports, the government has depreciated the value of Pakistani rupee, increasing the volume of foreign loans by ... Read More »

Economy not ready to take fresh start

The economy of Pakistan waded through various ups and downs in the current fiscal year. During the days of Finance Minister Ishaq Dar, the value of the Pakistani rupee remained stable, inflation was contained and over four percent in GGP was recorded. However, power supply could not be improved to the desired level, the volume of imports multiplied and exports ... Read More »

Economic Survey 2017-18

According to the Economic Survey of Pakistan 2017-18, the services sector has recorded a robust growth of 6.43 percent during the last two years. The next to record a major impetus in the economic volume is the agriculture sector which has grown by 3.81 percent during the outgoing fiscal year. The overall growth momentum of the economy is recorded at ... Read More »

Prospects of tourist industry

The tourism and hospitable sector is one of the largest important sources of revenue generation in today’s world as people want to visit new places and new destinations to explore new cultures for recreation and satisfaction of their aesthetics. There are millions of millions of other people who go on businesses and religious trips, making tourism as one of the ... Read More »

Decline in FDI

A State Bank of Pakistan report reveals that foreign direct investment has declined to only $152.7 million in March as compared to $318.3 million in the same month of the last year partly because of political uncertainty ahead of the general elections which are to be held in a few months. However, overall FDI increased in the first nine months ... Read More »

New round of rupee depreciation

Pakistani rupee always remained vulnerable to depreciation. However, speculations created a new stir in the currency market, pushing panic buying to bring dollar value as high as Rs 119 in the open market. The officials at the State Bank, who were virtually or habitually sleeping over the slide, are now rushing to meet currency dealers to fill the widening gap ... Read More »

Imminent challenges to economy

There are several factors including, growing external account challenges, trade deficit and energy crisis, which have the potentials to slowdown the economy of Pakistan in fiscal year 2018-19. In a bid to tighten monetary policy, the government allowed depreciation of rupee to deal with growing external account challenges, but the move faltered half way. The rupee value is experiencing a ... Read More »

Issue of consistent economic policies

According to Dr Miftah Ismail, Adviser to Prime Minister on Finance, the economy of Pakistan has the potential to record an annual growth rate of 10 percent provided the economic policies and reforms, introduced by the government in various sectors, continue in future. It is the dilemma of this nation that every new government rejects the plans and programmes launched ... Read More »

High debt-to-GDP ratio

According to the Ministry of Finance, the public debt-to-gross domestic product ratio is likely to reach 70.1 percent during the current fiscal year ending in June, exposing the failure of the PML-N government to manage the administrative affairs. The high debt-to-GDP ratio violates the Fiscal Responsibility and Debt Limitation (FRDL) Act of 2005 and as it is 10.1 percentage point ... Read More »

Free fall of rupee value against dollar

Pakistani rupee is experiencing a free fall these days as the exchange rate has touched Rs 117 against a US dollar in the open market though the inter-bank exchange rate still remained stable. The media reports suggest the dollar has hit the highest rate for the second time after it closed at Rs 117 almost a month ago, on March ... Read More »

Risks of macroeconomic imbalances

According to the latest report of the World Bank entitled ‘South Asia Economic Focus Spring 2018’, many short-term measures are required to streamline external and domestic imbalances and ensure macroeconomic stability. However, implementation of medium-term reforms is also necessary to control widening macroeconomic imbalances and allow the economy to move at sustainable growth rate. As the general elections are near, ... Read More »

Challenge of trade deficit

The latest unofficial data puts the trade deficit of the country at record level of $30 billion during the first 11 months of the current fiscal year which is at least 42 percent more as compared to the deficit during the same period of the last financial year. Though exports have picked up during the last few months, but declined ... Read More »

Record burden of loans

According to newspaper reports, the next government will have to borrow $13 billion during the fiscal year 2018-19, to repay previously obtained loans and stabilize the foreign currency reserves. The estimated foreign borrowing will be nearly 63 percent more than the outgoing fiscal year’s original estimates and the highest in the history of the country. The former finance minister had ... Read More »

Budget without CSF

According to newspaper reports, the government has decided to exclude the receipts of the US Coalition Support Fund from the federal budget for 2018-19, clearly pointing a fact that there is little chance of improvement in relations between Pakistan and the United States in the near future. The Coalition Support Fund remained integral part of the budget estimates during the ... Read More »

Amnesty scheme to alleviate external pressure

According to Moody’s credit rating agency, the repatriation of foreign liquid assets under the recently announced tax amnesty scheme will reduce external vulnerability risk on the economy of Pakistan. It also claims that the external pressures faced by the economy are due to import of equipment and machinery for the China Pakistan Economic Corridor. The higher imports are not only ... Read More »

ADB report on economy

The Asian Development Bank, in its report the Asian Development Outlook 2018, cautions that the pace of growth of Pakistan’s economy may slow down to 5.1 percent as fallout of the growing external account challenges. The report projects the expected growth in the country’s gross domestic product at 5.6 percent on strong prospects of the large-scale manufacturing sector and recovery ... Read More »

New policy for tax audit selection

According to the media reports, the Federal Board of Revenue has approved a new audit policy to make the selection of taxpayers more parametric, transparent and in conformity with the law. Earlier, the Lahore High Court had stopped the federal government from enforcing the audit policy allegedly because of the lack of transparency in the selection process of the taxpayers. ... Read More »

Latest growth figures

The government of Pakistan Muslim League-Nawaz has announced provisional figures of the economic growth, claiming that it will achieve a growth rate of 5.8 percent in the gross domestic product against the set target of 6 percent during the fiscal year 2017-18 ending June 30. With this, the size of Pakistan’s economy will swell to $312.7 billion by the end ... Read More »

Dream of economic recovery

The government ministers are posing rosy picture of the economy, as many indicators are showing signs of recovery, but the country still has to go a long way to achieve macroeconomic stability. The world financial institutions had projected six percent growth in the gross domestic product, but at least 5.6 percent is expected to be achieved during the current fiscal ... Read More »

SBP report on state of economy

In its second quarter report on the state of economy, the State Bank of Pakistan expects the real GDP growth will surpass the last year’s growth rate of 5.3 percent but will fall short of achieving the target of 6 percent. The growth of the large-scale manufacturing decelerated just to 1.6 percent of the GDP in the second quarter of ... Read More »