...POVERTY A MAJOR ISSUE Poverty is lack of basic human needs like health, education, clean water, nutrition etc. It is a condition in which one income is not sufficient enough to fulfill his basic needs. It is curse and something like 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...
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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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...analysis of Pakistan Submitted by Mohd. Asif ROLL NUMBER – AUD0637 BACHELOR OF BUSINESS ADMINISTRATION- 3C AMITY UNIVERSITY DUBAI CAMPUS MARCH 2013 ACKNOWLEDGEMENTS I wish to thank Mrs.Priyanka Chandanani for her advice and guidance. I appreciate their effort of providing necessary information regarding the paper & also for their support in completing the paper. I would also like to express my gratitude towards my parents for their encouragement and support. Lastly, I would like to extend my sincere thanks to all those at Amity University Dubai who have willingly helped me out with their abilities. PEST Analysis of Pakistan Political If we observe the political situation of Pakistan, much of the politics is based on different ethnic groups. It’s fair to say that the current political situation of Pakistan is in dire need of substantial changes if we compare it to the political systems of leading nations in the world. Pakistan has a democratically elected government where the ruling party is Pakistan People’s...
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...Pakistan is not out of the woods By Abdul Khaliq (CADTM Pakistan) Almost a year ago in August 2008, Pakistan was at the brink of default. Its foreign exchange reserves were hitting the bottom rock of $4 billion, depleting rapidly in the range of $250 to $330 million weekly, which were hardly sufficient to fulfill requirements of one month of imports. Pakistan’s sovereign debt and liabilities were the riskiest, which had crossed the $45 billion mark. Pak rupee had depreciated to 23 per cent. The gap between balance of trade was widening to the alarming extent. Poor law and order situation was scaring away the investors. Financial analysts were predicting Pakistan teetering on the edge of solvency, terming the situation as a natural consequence of Pakistan’s support to US-led war on terrorism. It was a tough time for a new PPP government. With begging bowl, Pakistan was imploring before Saudi Arabia and China to escape the impending default, but it could get nothing substantial. Finding no other option the desperate Pakistan decided to knock the IMF door. Despite strong opposition from many in Pakistan, the government finally entered into $7.6 billion Stand By Arrangement (SBA) loan with the Fund in November 08. A recent report by The Economist (April 23rd 2009) “Full Fear and Credit: Pakistan’s Political instability brings macroeconomic calm” claims that Pakistan has unique exemption from ill effects of the global contraction and under IMF program it has only...
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...Illuminer, Inc. Country, Market Entry & Strategy Analysis: India & Pakistan This report has been prepared for Illuminer, Inc. a manufacturer of tablets and smartphones. Their smartphones and tablets are assembled in China and then shipped across the world. The company primarily has market share in western markets, specifically the US and across several EU countries. However, as competition is tight between smartphone and tablet manufacturers in more developed western nations, Illuminer has decided to hire KLFH, LLP to explore market potential in two countries with growing 3 and 4G networks – Pakistan and India . Both have telecom companies that have burgeoning data-capable networks and millions of subscribers that would be ripe for Illuminer’s product lines. Illuminer has also asked KLFH to specifically look at two cities for this analysis, as they would serve as test markets for their entry into the country. To this purpose, KLFH has chosen the capital of both nations, New Dehli and Islamabad, for their additional research. KLFH has completed the following country comparison and market entry and strategy analysis, detailed below. Country and City Overviews India India is a highly populous country with a population of 1.21 billion. As the world’s population increases, India still plays an important role because of the fact that India holds over 15% of the overall population in the world. India is a country that has a rather young age group with a median age of 25. Since...
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...study on the franchising opportunities and the barriers to it in Pakistan A Proposal Submitted by: Faizan mujtaba malik TP027822 BA (hons).International Business Management In Partial fulfilment of requirements of the programme Bachelors of Arts in International Business Management Asia Pacific University of Technology and Innovation 06-11-2013 Abstract Recently countries over the world have been in a very fast economic development race with the most modern and appropriate strategies and technologies. However, franchising has been of the most successful and useful strategies that helped in the development and improvement of countries. On the other hand Pakistan is one of the developing countries that suffer from the lack of such strategies and technologies that would play the role in the economic development of the country. This report provides an overview of franchising strategy with its advantages and drawbacks. Moreover the report is about the market in Pakistan and provides a much clear image of the environmental factors and current situation in the country. The aim of research is to study the opportunities of franchising in Pakistan as well as the challenges that organizations face in the market of Pakistan specially in franchising. The research focuses on the environmental factors, political and social and cultural factors and its impact on the franchising market in Pakistan. The report also focuses on how technology and infrastructure can...
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...The Comparison between social and economics issues of flooding can be seen in the examples of Pakistan and Cumbria, Both these places have seen floods effecting economic and social issues. Flooding is a naturally occurring event that can be influenced or effected by human intervention, it occurs when discharge of a river exceeds the banks full capacity in a river channel. Floods are triggered by an increase in water volume that can be affected by many different factors, giving it great effect on human inhabitance in locations close to rivers situated around a floodplain. Pakistan has had a generally weak economy with a GDP per capita of about $2,710 and Cumbria with a GDP of $37,356 this shows us that Pakistan is less likely to have to resources to react to a flooding, while Cumbria will have the money to not only react but put in possible precautions to stop or subdue the flooding. With Pakistan having such a low GDP it ‘s right that we should see a large percentage of their population working in agriculture 45.1% and with some states such as Burkina Faso having 90% of its labor force in Agriculture, this compared to Cambria’s percentage of people in agriculture 29% the next largest being 21% (Healthcare and Education) shows that the effect my not be as strong on Cumbria as there will be less people living on flood planes due to little agricultural activity. Although Cumbria with less of a agricultural labor force and Pakistan with its greater agricultural labor force, Cumbria...
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...Two-Tier Corporate Governance Model for Pakistan Tasleem Faraz Minhas1, Saif Ullah2 1 Research Scholar, National University of Modern Languages, Lahore 2 Faculty members in Management sciences, National University of Modern Languages, Lahore Introduction As the business environment is continuously evolving so as the concept of corporate governance. The European Economic Community (EEC), General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) regulations have also contributed to the rising awareness and are compelling us to think in terms of adhering to the good governance practices. Corporate governance, by the very nature of the concept, cannot be exactly defined. However, there can be no two opinions that “effective accountability to all shareholders is the essence of corporate governance.” It is the set of process, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. “Corporate governance refers to the manner in which the affairs of a corporate body are or should be conducted in order to serve and protect the individual and collective interests of all stakeholders” (Butt 2008) According to OECD “Corporate Governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as...
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...Abstract The study analyses the degree of integration of Pakistan’s economy in global trade and financial flows. Pakistan’s integration into the global economy gained momentum in the late 1980s and early 1990s when it adopted more open and liberal policies as part of stabilisation and structural adjustment programmes negotiated with the IMF and World Bank. The paper presents an overview of Pakistan’s economy in the before and after period, it will specifically examine the trade performance from the 1980s onwards to see the progress made towards the integration of the Pakistani economy into the world economy. It will look into the opportunities that Pakistan is likely to gain in a more globalised world, with special focus on the textile and clothing sector and the potential growth in this sector after the abolition of the Multi Fibre Arrangement (MFA) in 2005. New challenges that may emerge in a more open trading environment will also be discussed. 1. Introduction Globalisation broadly defined as the free movement of goods, services, people and information across national boundaries has become a widely debated topic in recent years. Developing countries embrace Globalisation for a variety of reasons. Firstly, foreign investment provides more jobs, new production technologies, infrastructure improvements and a source of capital for local entrepreneurs. Domestic businesses gain access to both cheaper inputs and much larger markets for their products. The removal of trade barriers...
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...Provincial Economic Development: Performance, Challenges, and the Way Forward Khalid Ikram* 1. Introduction Analyses of economic development in Pakistan have traditionally followed a “top-down” approach. They examine the behavior of macroeconomic indicators for the country as a whole, referring only in a general, even cursory, manner to the trajectories of each province, and even more summarily to the policy issues, constraints, and opportunities that confront the different provinces. The implicit attitude—that it is the federation as a whole rather than the federating units that matter—is so firmly embedded in the official mindset that, even after 65 years of Pakistan’s existence, the authorities do not produce official statistics of province-level gross domestic product (GDP), investment, savings, exports, imports, labor productivity, and other key economic indicators. 2. The Importance of a Province-Level Approach Why is a province-level approach important? The issue is not merely of academic interest. It is necessary to strengthen studies at the province level, because policies to address questions of employment, poverty, and perceived deprivation, and to improve the delivery of key services are more effective if the perspective is as close to the ground as possible. The validity of this approach is recognized by the burgeoning number of regional or state studies in India and in other parts of the world—such as China, Malaysia, Vietnam, Thailand, Indonesia, Brazil...
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...diKalim Hyder & Qazi Masood Ahmed 107 Why Private Investment In Pakistan Has Collapsed And How It Can Be Restored Kalim Hyder and Qazi Masood Ahmed* Abstract The purpose of this paper is to analyse the decline in private investment and formulate a comprehensive strategy to overcome this problem, which is the main cause of deceleration in the growth momentum of Pakistan’s economy. Due to lack of investor confidence, private investment has reached its lowest point in the recent economic history of the private sector led growth phase (1978 to 2002) in Pakistan. This paper argues that economic as well as non-economic factors are responsible for this declining investment. Economic policies are formulated in such a manner that the short-term objectives of lowering the fiscal and trade deficits were to some extent achieved but overall economic performance and investment were ignored. In order to control external trade deficits, a policy of devaluation increased the cost of production through an increase in prices of imported raw material especially of plant and machinery. Higher real interest rates due to excessive public borrowing that were due to the failure in reducing fiscal deficits has resulted in financial crowding out and has corroded the savings that might be used to finance private investment. The unexplained part of private investment that is not determined by economic factors can be attributed to non-economic factors, which include internal and external shocks. These...
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...Introduction Entrepreneurship is becoming of vital importance in the economies like Pakistan. Entrepreneurship is strongly related to small medium enterprise (SME), which is considered to be the main developing force of the developing economies market. Previously many economists believed that it is the large firm which contributes in the developing of economies and attracts foreign exchange in the country. But there point of view changed when countries like Taiwan, Japan, and Korea established their economies on the bases of SMEs. These economies build up from grass root level to the heights of success. According to Schapper (2006), in developing nations more than 90% of the firms fall under the category of SMEs and he also above than 90% of these firms are microenterprises. Pakistan is also one of the countries focusing on the development of SMEs. Almost 13 years ago Govt. of Pakistan established institution named SMEDA; small and medium enterprise authority, responsible for the guidance and the promotion of SMEs. SMEs are very heterogeneous business operating in many different sectors such as trade, agri- business and manufacturing (Hussain et al, 2009). Pakistan is a very potential market for SMEs. Before very less or no importance is given on the business research which could attract many foreign investments. There are certain issues regarding the success and failures of SMEs which need to explore out and address. What is Entrepreneur? The term entrepreneur...
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...fasting growing economies in the world. This has a lot to do with the huge population in India. Capital, labor, and productivity growth have been the main contributors to the economic growth in the country. In recent years the Indian government has made great strides in strengthening the economy. Despite this push by the government there are still several very poor areas and the country still has a lot of uneven economic stability and because of this there is still a lot of room for improvement. The widespread poverty throughout India is one of the biggest challenges the country faces (Dasgupta & Chakraborty, 2005). For many years the Indian government had several rigid policies to discourage foreign investments but in recent years these policies have been under reform. Most of the growth that the economy of India has seen in recent years has been due to internal growth. The country depends very little on exports and this has been an advantage for their stability. When foreign countries have economic problems and in recent years when there are been global economic crisis, the effects are not felt as much on the Indian economy. India has a very good education system which is great for their economic growth. Unfortunately the education in not evenly spread throughout the country so there are many well educated areas but just as many uneducated areas which creates a high unemployment rate for those areas. The biggest challenge for India’s economy is its lack of resources...
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...Trade with India Major items of export from India to Pakistan are sugar, cotton, man-made filaments and chemicals, while its top imports from Pakistan include fruit, mineral fuels, and organic chemicals. Pakistan is trying to normalize its trade with India most obviously by the end of this year and also to untight the major import restrictions. Normalizing trade relations with India is in the best interest of Pakistan as it would not only help strengthen the national economy but boost economic activities in the region also. India granted Pakistan “most preferred nation” status which is intended to remove discriminatory higher pricing and duty charges in 1996.Pakistan did the same and give the same similar status to India. At present, Pakistan maintains a list of 1,945 items allowed to run from India to Pakistan, but only 108 can be transported directly by road through the border.The trade between the two countries would increase overall relations between the two countries but there are also confronting issues between two countries that needed resolution such as Kashmir.There are some hurdles still that Pakistan is facing from different sides but it is felt that peaceful environment is in the best interest of Pakistan. I personally believe that peace and stability is absolutely elusive as long as emotional thinking is there or restrictions on bilateral trade is there.Pakistan should welcome each and every opportunity related to trade from her historical rival India in...
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...Abstract The aim of this work is to look into urbanization trend in Pakistan and its socio-economic implications. The study would examine the effectiveness of a range of remedies applied in Pakistan, and as to how other countries are dealing with the problems arising due to urbanization. Based on analysis of the case of Pakistan and cross-country experiences, an attempt will be made to suggest remedies based on regulatory framework and various economic instruments to resolve the urbanization related issues. Urbanization is generally considered as a means and an end towards development. In Pakistan as well, the transition of a substantial portion of population to a largely urban population and the development of mega-urban regions/centers is being viewed as an engine of economic growth in the Government’s ‘New Growth Framework’. The success of this Growth Framework depends, to a large extent, on the speed with which the urban centers are transformed into dynamic, knowledge-based, productive, healthy and efficient centers. Urbanization is the process of a country becoming more industrialized from a previously agricultural dominated society; it is a cyclical process involving three essential aspects: behavior, structure and demography. Table of Contents Chapter Page 1. Introduction • Urbanization...
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