...Challenges to Pakistan’s Economy - Proposed Remedies & Solutions. Professor Dr. Shahida Wizarat Paper presented at the pre-budget seminar organized by the Southern Regional Committee of (ICAP), at Marriott Hotel, Karachi. 10 April 2008 1. Introduction All the serious challenges Pakistan’s economy is facing today like very wide budget and trade deficits, galloping inflation, increase in the level of poverty, power outages, water shortages, closure of industries, food insecurity, etc, has diverted our attention from realizing the very serious challenge that we have overcome. Since the 1950s we had a system in this country where the Ministry of Finance and all the economic ministries were headed by World Bank and IMF officials of Pakistan origin. With increase in the indebtedness of the country the situation got from bad to worse. The worst period was the decade of the 1990s when not only the economic ministries, but even prime ministers came from these institutions. During negotiations between the Government of Pakistan (GOP) and the International Financial Institutions (IFI)s it was difficult to distinguish between the GOP and the (IFI)s, for both sides comprised of IFI officials. These were very trying times for those of us who value independence and economic sovereignty of the country. I wrote several articles questioning the wisdom of a system which even...
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...BRANDING OF PAKISTAN The world now a day has become a compact village. Everyone knows everything that is going on in various part of the world. Marketing and branding has become so important that people are putting so much focus on the marketing activities of the product or brand they are affiliated with. Competition in the market is so strong that every organization is giving so much heed towards the innovation so that it can provide its customers with some thing new in order to sustain its already captured customers and to attach new ones with its name. Every organization wants the competitive edge. It is the case with the countries that are in the world. The pool of information available to the people around the globe makes the aware of what is happening in different countries and what is the reason behind it. The governmental bodies these days are trying to make their image better in the eyes of public of not only their own country but also in the eyes of public of other countries so that when they are competing in the elections next time they can get the international support. That can influence the opinion of the people that live in their own country. Pakistan these days is going through the transformational phase. Various positive actions are being taken by the government to improve its image. Pakistan is facing the major crisis in its economic category. People who live in the country and had been the big industrialists are taking their money out of Pakistan because they...
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...BUSINESS IN PAKISTAN UPDATED SEPTEMBER 2007 PREFACE In the preparation of this booklet we have tried to cover the principal aspects that regulate businesses in Pakistan, using, for this purpose, a language accessible to potential investors and business managers. We are aware that it is not easy to synthesize in a booklet of this nature all the legal, accounting, auditing, tax and labour rules/requirements that regulate businesses in Pakistan. However, if we have achieved our goal, contributing, by this way, to business development in Pakistan, we will be very satisfied. The booklet is designed to give some general information to those contemplating doing business in Pakistan, and is not intended to be a comprehensive document. Furthermore, its updating process is annual. Therefore, the users should consult us before taking any decision on the basis of information contains in this booklet. TABLE OF CONTENT FOREWORD 1 ABOUT HLB INTERNATIONAL 2 1. ISLAMIC REPUBLIC OF PAKISTAN 3 1.1 LOCATION 3 1.2 POPULATION DEMOGRAPHICS 3 1.3 INTERNATIONAL TIME 4 1.4 CLIMATE 4 1.5 LANGUAGE 4 1.6 CURRENCY 4 1.7 THE CONSTITUTION AND LEGAL SYSTEM 5 1.8 HIGHLIGHTS OF THE ECONOMY 5 1.9 ECONOMIC ARRANGEMNETS 7 1.9.1 List of Countries/Organizations with which Pakistan has Bilateral Investment Agreements 7 1.9.2 Pakistan and the Non-Aligned Movement (N.A.M.) 8 1.9.3 Pakistan and the Economic Co-operation Organization (ECO) 8 1.9.4 Pakistan and the...
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...Co. Chartered Accountants Investment in Pakistan Investment in Pakistan An Introduction Investment in Pakistan is a publication prepared by KPMG Pakistan to provide information on a number of subjects relevant for investment planning or doing business in Pakistan. The guide includes an overview of the economy and a summary of various investment opportunities in identified sectors which could be of interest for investors. This guide provides a summary of the rules, regulations and tax laws applicable in Pakistan. Although covering many relevant areas, it should not be considered as exhaustive since it has not been designed to provide complex and detailed information required for decision-making in relation to investments. This publication incorporates the regulations effective as of 31 August 2013. For our latest publications please browse our web site; www.kpmg.com.pk. © 2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Glossary BOI CY FCY FDI FY GDP GoP KSE PKR SBP SECP USD Board of Investment Calendar year Foreign Currency Foreign Direct Investment Fiscal year ended 30 June Gross Domestic Product Government of Pakistan Karachi Stock Exchange Pakistan Rupee State Bank of Pakistan Securities & Exchange Commission of Pakistan United States Dollar © 2013 KPMG Taseer...
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...Goals, Outcome Statements and Budget Estimates of The Federal Government of Pakistan Compiled by Tariq Husain (thusain@rabt-e-nau.com) for Rabt-e-Nau (www.rabt-e-nau.com) Islamabad Resource Number: GOVERN-R-001 on the Website 31 January 2011 Introduction In June 2010, the Finance Division of the Government of Pakistan presented an innovative budget document, called the Green Book, or the Federal Medium Term Budget Estimates for Service Delivery 2010-13 (http://finance.gov.pk/budget/mtbf_2010_13.pdf). The purpose, as stated in its Preface, “is to provide Parliament and other stakeholders with the clearest possible statement of the services which are to be delivered and the investments to be undertaken through the application of the funds appropriated by Parliament and, equally importantly, the results which are expected to be achieved in terms of the achievement of goals of public sector activity and the benefits expected to accrue to different population groups from the activities of the Federal Government. The publication of the Green Book marks a major step forward in enhancing the transparency of the federal budget.” The Preface highlights the innovative features of the Green Book in the following words: (a) The Green Book uses the 3-year framework for budgetary planning which lies at the heart of the MTBF reforms. Under this process ministries make their plans and prepare budgetary estimates for a rolling 3-year budgetary horizon. (b) The centerpiece of the Green...
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...Co. Chartered Accountants Investment in Pakistan Investment in Pakistan An Introduction Investment in Pakistan is a publication prepared by KPMG Pakistan to provide information on a number of subjects relevant for investment planning or doing business in Pakistan. The guide includes an overview of the economy and a summary of various investment opportunities in identified sectors which could be of interest for investors. This guide provides a summary of the rules, regulations and tax laws applicable in Pakistan. Although covering many relevant areas, it should not be considered as exhaustive since it has not been designed to provide complex and detailed information required for decision-making in relation to investments. This publication incorporates the regulations effective as of 31 August 2013. For our latest publications please browse our web site; www.kpmg.com.pk. © 2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Glossary BOI CY FCY FDI FY GDP GoP KSE PKR SBP SECP USD Board of Investment Calendar year Foreign Currency Foreign Direct Investment Fiscal year ended 30 June Gross Domestic Product Government of Pakistan Karachi Stock Exchange Pakistan Rupee State Bank of Pakistan Securities & Exchange Commission of Pakistan United States Dollar © 2013 KPMG Taseer...
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...out their scenarios of an uncertain and unknown future. This article therefore examines the past developments, current trends of Pakistani economy and the future global and regional outlook and builds the most likely scenario for the medium term economic prospects of the country (next 10 years or so) and then reviews the downside risks and upside gains around this scenario. 2. Pakistan is still a low income country and it would require at least next 14 years of 7 percent average annual GDP growth to double its per-capita income to around $ 2000 (official exchange rate conversion). This growth rate should also be able to reduce the incidence of poverty by half and meet the Millennium Development Goal. 3. It is easy to make this normative statement but more difficult question is how can this growth rate be achieved on a sustained basis? The prophets of doom and gloom in Pakistan (and there are plenty of them) who are constantly polluting the minds of our younger generation and turning them into cynics at very early age sapping their energies for constructive thinking and actions would dismiss this exercise as a figment of imagination or at best a fantasy. To them, all the economic gains have accrued due to the windfall of 9/11 and Pakistan’s support to the US in the war against terror. When confronted with the stark fact that Pakistan was one of the few countries that grew by 6 percent annually between 1960 and...
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...12 Introduction to Micro And Macro Economics | Major Issues in Pakistan Economy: A Statistical Overview | | | | | Table of Contents Page Historical Background of Pakistan...............................................................................3 An Overview of Current Situation in Pakistan.............................................................5 Major Issues in Pakistan: .............................................................................................7 Illiteracy.............................................................................................................7 Poverty..............................................................................................................12 Corruption.........................................................................................................15 Overpopulation and Population Health.............................................................18 Unemployment..................................................................................................22 Inflation.............................................................................................................26 Energy crisis......................................................................................................30 Political instability............................................................................................33 Conclusion and Recommendations............
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...-1- WHAT IS HIDDEN, IN THE HIDDEN ECONOMY OF PAKISTAN? SIZE, CAUSES, ISSUES AND IMPLICATIONS Ahmed Gulzar Novaira Junaid Adnan Haider Pakistan Institute of Development Economics, Islamabad, Pakistan National Transport Research Centre (NTRC), Ministry of Communications Beaconhouse National University (BNU), Lahore, Pakistan State Bank of Pakistan, Karachi, Pakistan Abstract There is a worldwide contemporary debate about the role of the hidden economy in achieving the goal of sustained and inclusive economic growth and development, especially in the context of its spillover effects on the formal economy. For this purpose, policy makers and academicians have made concerted efforts to estimate the size of the hidden economy and to analyze its causes, issues and implications on key macroeconomic variables. However, there is a consensus among the policy makers that a better macroeconomic policy formulation and its true implementation are subject to the proper management of the associated issues of the hidden economy with suitable policy measures. In Pakistan, it is generally assumed that the hidden economy contributes about 30% to 50% to the overall GDP. The purpose of this paper is to estimate more precisely the size of the hidden economy with the determination of its potential causes and implications. Five statistical and structural modeling approaches namely; simple monetary approach, modified monetary approach using dynamic ordinary least square (DOLS)...
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...Pakistan Steel Mill -A Blow To Economy Introduction Sixty three years ago the world's map underwent a great change and the Indian subcontinent was divided into two independent states: India and Pakistan. It did not take much time to change the maps nor did it affect the neighboring countries in any great way, but this division was the result of an intense and dedicated struggle by millions of people of the subcontinent. Background At the time of partition, the areas comprising Pakistan received only five per cent of the subcontinent's industry. . The foundation stone of Pakistan Steel was laid by the then Prime Minister Zulfiqar Ali Bhutto on 30th September 1973. Pakistan Steel is the pioneer in the engineering industries of the country. Experts agree that setting up of a Steel Mill was primarily not for earning profits but to give an impetus to the engineering industry for the country's economic progress.The government established the Pakistan steel mills corporation thinking that that economic growth would not be possible without a self sufficient iron and steel making plant.They believed that depending on imported steel would cost the country too much. How wrong could they have been? They would never have believed that it would come to such a point that the Steel mills would ask for steel imports to be banned so that it could sell its steel at a higher price.It may be interesting to note that Pakistan Steel Mills remained a profitable organization from 2001 to...
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...“MULTINATIONAL CORPORATIONS” A multinational corporation has its facilities, subsidiaries, and other assets in countries other than its home country. A multinational corporation is also known as multinational enterprise . Businesses are always running after profits, therefore, they try to find out ways to decrease the cost as much as they can e.g. cheaper labor to bring about efficiency because it cuts cost of production. The concept of MNC’s originated from Western Europe particularly England and Holland. At that time, with the help of successful trades a lot of banks and money lending agencies emerged. Later in 17th and 18th century, companies like Hudson Bay Company, British East India Company, and French Levant Company emerged as the major multinationals at that time. The modern version of Multinationals emerged after the industrial revolution. During that time, huge foreign investment flowed from Western Europe in Asia, Africa etc. Companies started searching for countries where the labor as well as the resources was cheap and still today, when the no. of MNC’s have reached around 889450, the companies are still searching for countries where they can find much more cheap labor and other resources. A very important factor regarding the topic of MNC’s is globalization. Friedman defined globalization as: “Globalization is the inexorable integration of markets, transportation systems, and communication systems to a degree never witnessed before -- in a way that is enabling...
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... PULP AND PAPER INDUSTRY IN PAKISTAN General information on the Pulp and Paper Industry in Pakistan. Research and Compilation by the Commercial Section of the Embassy of Brazil in Pakistan. [pic]Pulp and Paper Industry in Pakistan Table of Contents 1. Pakistan’s Economy 2 2. Industry overview 2 2.1 Current Status of Pulp and Paper Industry in Pakistan 3 2.2 Types of papers produced 4 2.3 Method of Producing Paper 4 2.4 Raw Material Availability 5 3. Current status of Trade and Potential of Pak- Brazil Trade Cooperation in this sector 7 3.1 Potential of Export to Pakistan 8 4. Future Outlook 10 5. Companies and Useful Links 11 1[pic] SECOM-Islamabad, Pakistan [pic]Pulp and Paper Industry in Pakistan 1. Pakistan’s Economy Pakistan economy is positioned at 27th largest economy with 488 (1) billion USD in term of Purchasing Power Parity. Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Growth poles of Pakistan's economy are situated along the Indus River, diversified economies of Karachi and Punjab's urban centers. The economy has suffered in the past from decades of internal political disputes, terrorism, political...
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...Impact of afghan war on Pakistan economy “Although history has been very unkind to Pakistan but its geo-strategic position has been a great asset to garner benefits from world great powers” (Stephen p. Kohen) • Introduction The conflict and instability in Afghanistan is the aftermath of 9/11 attacks and their regional implications had very negative repercussions, for the years following the US invasion of Afghanistan not only saw a huge influx of Afghan refugees across the border into Pakistan but also witnessed a sudden spike in the frequency and scale of terrorist attacks in Pakistan. The cumulative impact of these developments adversely impacted the overall growth rate in all major sectors of the economy. Pakistan continues to pay a heavy price both in the economic and security terms due to this situation and a substantial portion of precious national resources both men and material, have been diverted to address the emerging security challenges for the last several years. The rise of violent extremism and increase in terrorism in Pakistan due to instability in Afghanistan not only caused serious damage to Pakistan’s economy but has also been responsible for widespread human suffering due to indiscriminate attacks against the civilian population. This situation disrupted Pakistan’s normal economic and trading activities which not only resulted in higher costs of business but also created disruptions in the production cycles, resulting in significant delays in meeting the...
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...1 – Pakistan 4/9/2014 Pakistan is a sovereign country of South Asia, and the sixth most populous country in the world. It was ruled by the British Indian Empire until August 14, 1947, when the empire split into two separate sovereign states- Pakistan and India. It now borders the Arabian Sea, India on the east, Iran and Afghanistan on the West, and China in the north (Nations Online, 2014). After formation of the New Republic, tensions between East and West Pakistan still existed, which caused a civil war, and ended in separation and creation of the state of Bangladesh. Formal relations between Pakistan and India were re-established. They were shaken again in the late 90s, when India tested nuclear weapons and Pakistan followed a few weeks later. That led to the Kargil War of 1999 (Nations Online, 2014). Under the pressure of the United States, Pakistan broke its close ties with Afghanistan, and became a US ally after the Sep. 11 attacks. President Bush, therefore, ended sanctions that were instituted after the nuclear tests in 1998, and rescheduled Pakistan`s debt (Nations Online, 2014). In 2003, Pakistan and India ended their fight in Kashmir, and allowed people to reunite between the two capitals of Kashmir - one on the Pakistan`s side, the other one on the Indian side. After 60 years, in 2007, trade route finally opened across the line of control (Nations Online, 2014). With increased violence in Afghanistan in 2010, President Obama pressured current Pakistan`s President...
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...nobody would want to own. In Pakistan it is not a yesterday born issue, it is eating up Pakistan and now it has spread out its circle to a larger radius now. Historically it began just with independence because of lack of proper resources at that time. In 1980 there was a slight decline in its level but the level again risen up after 1990 and till now it is rising with fluctuation of time. Currently about 35% of Pakistan population lives below the line of poverty. Mostly people of rural areas live below the line of poverty and two third of our population live in rural areas. Scenario is also not different in urban areas where 40% population of urban area live below the line of poverty. Currently poverty is the cause behind many critical problems in Pakistan on one hand but it is also outcome of many other problems. There are a lot of reasons behind poverty. Mostly people blame politics and politicians as one of the reason for prevailing poverty. Some call it lack of good leadership, some call it bad government policies and some call it bad politics but they all are same in one. Politicians are some time not sincere for eradication of poverty and some do not have proper plan for its solution. The policies adopted by different government only cause a little fluctuation in level of poverty but the condition of people remains same every time. Bad governance also relates corruption with poverty. Corruption has totally engulfed every office of Pakistan it now not considered as a sin...
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