Highlights of the Economic Survey of Pakistan – 2011
Courtesy Shoaib Habib Memon: The Real GDP is estimated to grow at 2.4 percent on the back of strong performance of services sector as against actual growth of 3.8 percent last year and target of 4.5 percent. The growth in the agriculture is estimated at 1.2 percent on the back of 3.7 percent growth in the livestock sector. .. Output in the manufacturing sector has witnessed expansion of 3 percent in 2010-11 as compared to expansion of 5.5 percent last year on the back of strong performance from small and medium manufacturing sector. Large-scale manufacturing grew 1.7 percent in July-March (2010-11) as against 4.9 percent as comparing to last year. The services sector grew by 4.1 percent against the target of 4.7 percent and actual outcome of 2.9 percent. .. Pakistan’s per … Read entire article »
Finally, a Middle-Income Country
This is an excellent article by Doctor Niaz Murtaza which elaborates that Pakistan’s entry into middle income countries as per Gross National Income (GNI) may be somewhat misleading as the measure in isolation is inadequate. Pakistan, while it has entered the league of middle income countries as per this criterion, continues to reflect some characteristics of low income countries. Its performance in key indicators such as poverty level, education, fiscal stability etc compare poorly with other middle income countries. Dr. Niaz Murtaza also questions whether the current neoliberal economic policies are the right prescription for the economies of the developing countries By Dr. Niaz Murtaza As expected, a recent World Bank report has confirmed Pakistan’s graduation to the ranks of middle-income countries. However, this elevation has generated little national euphoria and even … Read entire article »
Don’t cut Pakistan aid, fix it
By Nancy Birdsall, Wren Elhai and Molly Kinder: For nearly two years, the United States has been trying something completely new in Pakistan. In 2009, with President Obama’s backing, Congress passed a bold piece of legislation that committed the United States to support Pakistan’s people and its economy, as opposed to focusing almost exclusively on the country’s military. The United States would try to help Pakistanis entrench the transition to democracy they won in 2008, and … Read entire article »
Filed under: Economy
Pakistan: Impaled on the horns of an economic dilemma
By Dr. Niaz Murtaza Pakistan’s economy is currently afflicted by two problems requiring diametrically opposite remedies: economic stagnation, which dictates expansionary policies, and inflation caused by a fiscal gap, which requires contractionary policies. Pakistan thus suffers from stagflation. Given their conflicting remedies, should Pakistan prioritize economic growth (real stability) or inflation control (financial stability)? Neoliberal economists always prioritize financial stability, arguing that it automatically ensures real growth. The IMF and the US (which suffers a larger deficit and debt burden but does not fully practice the flawed neoliberalism that it preaches) are asking Pakistan to raise sales taxes and eliminate subsidies. This strategy will certainly reduce the fiscal gap. However, it may not reduce inflation since sales taxes and withdrawal of subsidies on utilities, petrol and food can be inflationary. Moreover, it … Read entire article »
An Angry but Patriotic Retort
By Adnan Syed This post is meant as an “honorable” and “patriotic” reply to all the liberal bloggers and PTH-likes who cast doubt on popular nationalist narratives, and point out the nationalistic ideology steeped in hatred and revulsion against foreign powers as self defeating. The post had its genesis in Raza Raja’s article titled “The Misplaced Hatred and Our Rational Self Interest”[i], but is also applicable to all articles calling for restraining our patriotic fervor when it comes to drones, Blackwater, and now Raymond Davis. (AZW) Hold on right there you so called liberal Pakistani bloggers: Are you suggesting here is that Pakistan is in a mess here because of America? Do you not think it was Americans, not us who were pursuing the ideas of strategic depth by backing every rabid extremist like … Read entire article »
Filed under: Afghanistan, Economy, Egalitarian Pakistan, FATA, Identity, India, Islam, Islamabad, North-West Frontier Province, Pak Tea House, Pakistan, Politics, state, USA
Judicial activism and Pakistan’s economy
Economic justice Courts involvement in economic matters has once again triggered a debate over judicial activism versus judicial restraint http://www.jang.com.pk/thenews/jan2011-weekly/nos-30-01-2011/dia.htm#6 By Shahzada Irfan Ahmed The recent orders by the Supreme Court for removal of former National Bank of Pakistan (NBP) president Ali Raza and the return of mobilisation advances to the government by the RPPs (Rental Power Projects) have once again triggered the debate over judicial activism versus judicial restraint. There are quarters who laud the apex court’s role in purely economic matters, which they believe are being ruined due to state favouritism and corruption. However, there are those who believe the damage was bigger than the correction intended at. They cite the matters pertaining to fixing of sugar prices, cancellation of Pakistan Steel Mills’ privatisation and so on. … Read entire article »
Meltdown in Tunisia and Its Relevance to Pakistan
By Adnan Bashir A twenty six years old young computer science graduate roams about in hunt of employment. There are no job openings and the inflation is sky rocketing. The young man is forced to sell fruits and vegetables in the streets to make his both ends meet. He doesn’t have the licence and one fine day the police intervenes and confiscates his cart. The young man is incensed and sets himself on fire. Sounds familiar? This is not Pakistan. But this may well be Pakistan……! There are obvious parallels to be drawn from the circumstances leading to revolt in Tunisia. Corruption, nepotism and unemployment were rampant. The society was said to be virtually divided in two classes. First, the elites and a closely knitted network and clan of top brass comprising relatives of … Read entire article »
Filed under: Army, Citizens, Colonialism, Constitution, Democracy, dynasties, Economy, human rights, Law, Pak Tea House, Pakistan, Politics, poverty, Rights, Uncategorized
The Giant in the East – IV
By Adnan Syed This four part series examines the rise of India as an economic giant, the threats that India faces in this remarkable rise, and implications for Pakistan. Originally planned as a three part series, I decided to split the series into four parts due to sheer volume of information that I came across while writing this series. (AZW). The Two Fundamental Assumptions Regarding future India, Pakistan must start with two fundamental assumptions: A. India’s progress is for real and will likely continue. Indian economy is beginning to compound and will consequently elevate India as one of world’s top four powers to reckon with on the world’s political stage in coming decades (along with China, US, and Europe). B. India’s military rise is inevitable along with its economic rise. However, Indian’s military rise is being … Read entire article »
Filed under: China, culture, Democracy, Economy, India, Islamabad, Pak Tea House, Pakistan, Pakistan-India Peace Process, Politics, Uncategorized, USA
The Giant in the East – III
By Adnan Syed This four part series examines the rise of India as an economic giant, the threats that India faces in this remarkable rise, and implications for Pakistan. Originally planned as a three part series, I decided to split the series into four parts due to sheer volume of information that I came across while writing this series. (AZW) Bottom line: It Mostly Comes Down to the Economy Arguably, in recent memory, the United States came dangerously close to losing its mantle as a modern economic and military power on September 15, 2008. That was the day when famed Lehman Brothers filed for bankruptcy. As the financial markets opened the next day, the economic engine of the United States quickly started stalling. Banks balance sheets were severely compromised as their assets were falling … Read entire article »
Filed under: China, Economy, India, Pak Tea House, Pakistan, poverty, south asia, state, Uncategorized, USA
Pakistan needs immediate assistance
PTH is starting a series of posts devoted to the Pakistan’s current crisis effects of which will be long term in nature. While millions of Pakistanis are in dire need of emergency help, our country’s political and economic instability will have ramifications for the region and the world. This is why it is extremely important to understand how several parts of Pakistan have lost decades of development and a state with weak capacities needs billions of dollars in the short term to start a major programme of rehabilitation. If Pakistani state is unable to intervene, the Taliban and other Al-Qaeda militants (and their allies in South Punjab) will find a golden opportunity to annihilate the Pakistani state, discredit constitutional governance and capture political space. Pakistanis cannot be silent victims and … Read entire article »
Filed under: Al Qaeda, Economy, Environment, Pakistan, south asia, Taliban, Terrorism
Zulfiqar Ali Bhutto and Pakistan
By Raza Habib Raja Tracing Bhutto’s impact on the Pakistani Political, Social and Economic Landscape I remember going through Stanley Wolpert’s very good book on this enigmatic politician. The first sentence more or less defines Bhutto’s legacy. Wolpert while researching his book on Jinnah wrote that during his stay in Pakistan, he found out that people either hated or loved Bhutto. He also wondered about the amazing contradictions in the personality of this amazing politician. Today, as we stand in 2010, and look back into the strange chequered history of this country, no discussion on politics, culture, economic and social ideology, military and its role in politics, and politicization of masses cannot even begin without ZAB. His contribution and impact has been tremendous. A few may object: why not move on? The … Read entire article »
Pakistan’s budget: Policy sans public
Raza Rumi Last week, a former Minister while referring to the budgeting process remarked how the budget documents were accessible to only 3% of the parliamentarians. A lady MNA whom I met after the budget speech was ploughing through the shabbily printed pink documents, looking for the allocations for regulatory bodies and both of us could not find the relevant figures. This should be enough to describe the inaccessibility and obfuscated nature of the budgeting process in Pakistan and several other developing countries. Executive board-room syndrome: Lack of public consultation in the budgetary processes is another hallmark of how the executive formulates the national priorities and finances them. Our state considers the people as ‘beneficiaries’ and ‘recipients’ of the wise decisions made in air-conditioned secretariats and donor board-rooms. This is why the … Read entire article »
THE GREAT RECESSION, THE EUROPEAN FISCAL CRISIS AND LESSONS FOR PAKISTAN. Part 3: The European Debt Crisis
The Exploding Debt in Europe By Kashan Wali, exclusive to the PTH Wealth cannot be artificially created Finance in a real world relies on underlying wealth of a society. Governments cannot create wealth by printing money. Print too much money and it will lose its value. A fall in the value of money leads to inflation. Inflation viciously attacks the value of savings of the population. As population loses the stored wealth, the population becomes dependent on the state. State has to pay more now for healthcare, education and in extreme situation, food and shelter for population that is going poorer by the day. Either way, unless the underlying wealth (net output of goods and services produced) does not increase, a country cannot become wealthier. Let’s say state tries to pull another trick here; … Read entire article »
Filed under: Democracy, Economy, Europe, New Writers, Pak Tea House, Pakistan, poverty, public policy, state, USA
THE GREAT RECESSION, THE EUROPEAN FISCAL CRISIS AND LESSONS FOR PAKISTAN. Part 2: The US Sub-Prime Crisis and the Great Recession
By Kashan Wali, exclusive to the PTH As the United States economy took off for most of the 1990s, the new found wealth across the world was staring at the best of both worlds; high economic output due to technological advances, cheaper labour entrance into the global economy from India and China, entrance of Eastern Europe and Latin America in the democratic capitalist system, all combined with a lower inflation. What could go wrong? In some ways, the situation was similar to the roaring 1920s of the United States. 90 years ago, the US economy was expanding rapidly. New technological advances in automobile and telephone technology were erasing geographical distances within and outside of the United States. Rising productivity was increasing wealth and the signs of prosperity were evident in the stock market and … Read entire article »
Filed under: China, Economy, India, New Writers, Pakistan, USA
THE GREAT RECESSION, THE EUROPEAN FISCAL CRISIS AND LESSONS FOR PAKISTAN. Part 1: Background, The Roaring 90s and the rise of leverage
By Kashan Wali, exclusive to the PTH Today is May 08, 2010. As I write these line it occurs to me that this weekend is one of the most critical weekends as the seven month long crisis that started with initial doubts about Greece’s ability to pay off the massive debt that Greece had accumulated. The world nervously watches the European debt crisis morph into a contagious financial nightmare. Investors are worried that indebted nations like Greece, Portugal, Spain and even UK have accumulated too much debt too soon. Coming on heels of the subprime crisis in 2007 and 2008, the world economies and the financial system are still in the recuperation phase from the wounds inflicted from the subprime crisis and the subsequent Great Recession afterwards. Below, we examine the European debt … Read entire article »
Filed under: Economy, Europe, History, New Writers, Pak Tea House, Pakistan, USA
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