Sameet2
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Even this will make a well placement in suicide squad of allahu akabar party !
Pakistan Economy: News & Discussion
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Neo
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Inflation dips to 12-year low of 1.3% in September
By Shahbaz Rana
Published: October 2, 2015
Some experts warn of deflation risks, core inflation dips to 3.4%. PHOTO: ZAHOORUL HAQ/EXPRESS
ISLAMABAD:
Inflation in Pakistan continued to drop, falling to a low of 1.3% in September, sparking at least some economists to warn of the risk of deflation.
The Consumer Price Index (CPI), the indicator that captures prices of 481 commodities every month, rose by just 1.3% in September on a year on year basis, according to data released by the Pakistan Bureau of Statistics (PBS) on Thursday. It was the lowest level since July 2003.
Although much of the reduction in inflation was attributed to steep decline in commodity prices, even core inflation, which strips out the effect of volatile food and energy prices, was lower. Core inflation clocked in at 3.4% on a year-on-year basis in September, a decline of 0.6% over the previous month. The steady decline led some economists to argue that the government should abandon austere fiscal policies and undertake an economic stimulus to prevent the economy from spiraling into deflation.
Read: Inflation slows down to 1.7%, lowest since 2003
“The government is not taking its own inflation figures serious, which suggest the country has entered a deflationary period,” said Ashfaque Hasan Khan, Dean of School of Social Sciences and Humanities at the National University of Science and Technology.
But while fiscal policy may remain austere, monetary policy has become far more accommodating. The State Bank of Pakistan has recently cut interest rates to a 42-year low of 6% in order to support growth and keep the outlook for future inflation consistent with the target. However, the reduction in discount rate is not helping, as there is little credit left for the private sector to borrow.
While the CPI is in disinflation, the Wholesale Price Index (WPI) is already depicting deflationary trends and was negative by almost half percentage points for ten consecutive months. The negative trend in wholesale prices may spill over to retail prices.
The WPI-based rate of inflation contracted by 3.1% in July-September period of this year as compared to the previous year, according to the PBS.
The CPI-based inflation rate for July-September period also remained at 1.7%, suggesting that overall inflation rate for the current fiscal year 2016 will remain far below the official target of 6%.
Read: Inflation dips to 12-year low at 1.8% in July
According to the PBS, prices of food and non-alcoholic beverages dropped by over 1% in September over a year ago. Perishable food prices decreased over 8% on a year-on-year basis in September.
However, prices of pulses increased in the range of 16% to almost 50% due to shortage of the commodities. The government has already allowed import of pulses to stabilise their prices.
In the energy group, the kerosene oil prices were one-fourth less than the previous September while petrol rates were also lowered by 22% as compared to the last year.
Published in The Express Tribune, October 2nd, 2015.
By Shahbaz Rana
Published: October 2, 2015
Some experts warn of deflation risks, core inflation dips to 3.4%. PHOTO: ZAHOORUL HAQ/EXPRESS
ISLAMABAD:
Inflation in Pakistan continued to drop, falling to a low of 1.3% in September, sparking at least some economists to warn of the risk of deflation.
The Consumer Price Index (CPI), the indicator that captures prices of 481 commodities every month, rose by just 1.3% in September on a year on year basis, according to data released by the Pakistan Bureau of Statistics (PBS) on Thursday. It was the lowest level since July 2003.
Although much of the reduction in inflation was attributed to steep decline in commodity prices, even core inflation, which strips out the effect of volatile food and energy prices, was lower. Core inflation clocked in at 3.4% on a year-on-year basis in September, a decline of 0.6% over the previous month. The steady decline led some economists to argue that the government should abandon austere fiscal policies and undertake an economic stimulus to prevent the economy from spiraling into deflation.
Read: Inflation slows down to 1.7%, lowest since 2003
“The government is not taking its own inflation figures serious, which suggest the country has entered a deflationary period,” said Ashfaque Hasan Khan, Dean of School of Social Sciences and Humanities at the National University of Science and Technology.
But while fiscal policy may remain austere, monetary policy has become far more accommodating. The State Bank of Pakistan has recently cut interest rates to a 42-year low of 6% in order to support growth and keep the outlook for future inflation consistent with the target. However, the reduction in discount rate is not helping, as there is little credit left for the private sector to borrow.
While the CPI is in disinflation, the Wholesale Price Index (WPI) is already depicting deflationary trends and was negative by almost half percentage points for ten consecutive months. The negative trend in wholesale prices may spill over to retail prices.
The WPI-based rate of inflation contracted by 3.1% in July-September period of this year as compared to the previous year, according to the PBS.
The CPI-based inflation rate for July-September period also remained at 1.7%, suggesting that overall inflation rate for the current fiscal year 2016 will remain far below the official target of 6%.
Read: Inflation dips to 12-year low at 1.8% in July
According to the PBS, prices of food and non-alcoholic beverages dropped by over 1% in September over a year ago. Perishable food prices decreased over 8% on a year-on-year basis in September.
However, prices of pulses increased in the range of 16% to almost 50% due to shortage of the commodities. The government has already allowed import of pulses to stabilise their prices.
In the energy group, the kerosene oil prices were one-fourth less than the previous September while petrol rates were also lowered by 22% as compared to the last year.
Published in The Express Tribune, October 2nd, 2015.
Neo
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South Korea to spend $500m on development projects in Pakistan
By Web Desk
Published: October 2, 2015
Republic of Korea said on Friday it will provide $500 miilion to Pakistan for completion of different projects, including hydropower, road infrastructure, information technology and health.
The two countries signed a framework arrangement to this effect at a ceremony in Islamabad, according to Radio Pakistan.
Read: Pakistan outsources Muzaffarabad reconstruction work to five countries
Secretary Economic Affairs Division Muhammad Saleem Sethi and Dr Song Jong-hwan, ambassador of the Republic of Korea, signed the framework on behalf of their respective governments.
Finance Minister Senator Ishaq Dar appreciated the role and cooperation extended by South Korea for development projects in Pakistan. He said that the economic relations between the two countries would be further strengthened with the passage of time and the framework arrangement will enable Pakistan to seek financial help from Korea’s Exim Bank for development of energy and other infrastructure projects in Pakistan.
The ambassador of the Republic of Korea said it would extend all possible cooperation for economic development of Pakistan.
By Web Desk
Published: October 2, 2015
Republic of Korea said on Friday it will provide $500 miilion to Pakistan for completion of different projects, including hydropower, road infrastructure, information technology and health.
The two countries signed a framework arrangement to this effect at a ceremony in Islamabad, according to Radio Pakistan.
Read: Pakistan outsources Muzaffarabad reconstruction work to five countries
Secretary Economic Affairs Division Muhammad Saleem Sethi and Dr Song Jong-hwan, ambassador of the Republic of Korea, signed the framework on behalf of their respective governments.
Finance Minister Senator Ishaq Dar appreciated the role and cooperation extended by South Korea for development projects in Pakistan. He said that the economic relations between the two countries would be further strengthened with the passage of time and the framework arrangement will enable Pakistan to seek financial help from Korea’s Exim Bank for development of energy and other infrastructure projects in Pakistan.
The ambassador of the Republic of Korea said it would extend all possible cooperation for economic development of Pakistan.
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India is the fastest growing economy in the world and the no-1 destination for FDI.Update yourself.
http://blogs.wsj.com/indiarealtime/...to-become-the-worlds-fastest-growing-economy/
http://indiatoday.intoday.in/story/...eve-29000-mw-installed-capacity/1/488982.html
What is the present installed capacity now and projected power capacity of pakistan by 2019?
Hyderabad, Oct 2 (PTI) Andhra Pradesh government aims to achieve 29,000 megawatt installed capacity of power by 2019 against the present capacity of 10,222 MW, it was officially announced here today. According to an official release, peak demand for power will increase to 13,500 MW by then as against the present power demand of 6,200 MW. "AP is marching towards achieving a total installed capacity of about 29,000 MW (present installed capacity is around 10,222 MW) by going for additional generation capacity of around 18,230 MW (thermal - 7,090 MW, hydel - 1,010, solar - 4,530, wind - 4,000, CGS -1600) by 2019," the release said, quoting AP CM Chandrababu Naidu. APs power requirement will cross 80,000 million units as compared to its present requirement of around 43,000 MU, the release said. PTI GDK BA MKJ SDM.
In effect the small southern state of AP will have more installed power capacity in 2019 than the present installed power capacity of pakistan,
Tamil nadu too has close to 13000 Mw power and aims close to 20000 mw in near future.
Most of your proposed investment for power sector is from china, with the present turmoil, there is no guarantee of those funds materializing in any near future.
china has more than 1.6 trillion foreign in corporate debt.last month alone global investors pulled 90 billion dollars of that.
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People Seeking Asylum in Europe:
Pakistanis 20,370
Indian Muslims Zero
Proves that: Partition of India was a blunder.
http://movies.ndtv.com/music/ar-rahman-tendered-a-written-apology-1224557
Now A.R.rahman whose music is celebrated by hundreds of millions of hindus , irrespective of the fact he converted to islam from Hinduism is cancelling his india visit due to the reza academy fatwa over his music composition for the film, MOHAMMED!!!
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Blunder for Muslims yes. But not for Hindus. Incomplete partition was the mistake we committed
cannonfodder
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To be honest why are even hosting paki's here 
...... They should be kicked out of from this site like they should be from Pok. Anyways they don't add anything valuable to forum either.
...... They should be kicked out of from this site like they should be from Pok. Anyways they don't add anything valuable to forum either.
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Yeah I too have suggested that but the forum believes in free speech , so.....To be honest why are even hosting paki's here
sob
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All such posts may please be shifted to this thread :
Pakistan's Descent into Chaos: Terrorist & Drone Attacks
http://defenceforumindia.com/forum/...rorist-drone-attacks.396/page-48#post-1076077
Let us discuss about Pak Economy here.
thethinker
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57 billion invested yet the power plant failed to produce electricity...
------------------------------------------
Sound and fury over Nandipur come to naught
http://www.dawn.com/news/1211094/sound-and-fury-over-nandipur-come-to-naught
ISLAMABAD: Even as top government functionaries, including Prime Minister Nawaz Sharif himself, proclaim that an impartial inquiry into the alleged mismanagement of the Nandipur Power Project (NPP) will vindicate them, there seems to be no movement on efforts to find out what actually went wrong in the multi-billion rupee project.
Former Supreme Court judge, retired Justice Nasir Aslam Zahid has turned down the PM’s offer to head an inquiry commission into the NPP scandal. Sources say that Justice Zahid expressed his unavailability to lead the inquiry due to personal commitments.
Take a look: Nandipur power plant failure: what needs to be probed?
Meanwhile, embattled NPP Managing Director Captain M. Mehmood has also called into question the formation of a separate inquiry committee — initiated by the National Electric Power Regulatory Authority (Nepra) — saying, “Since the forum evoked is not appropriate, therefore, a conflict of interest can occur.”
Moreover, a private audit firm selected by the government to scrutinise the 425MW NPP has refused to conduct a commercial and technical appraisal of the project and has only agreed to examine the financial side of the project.
Only AGP looking into irregularities in Rs58bn project
As a result, the auditor general of Pakistan (AGP) is the only third party that is assessing the project and looking into the reasons behind the delays incurred and examining how, after an investment of Rs57 billion, the plant still failed to produce electricity.
However, with the incumbent AGP Rana Asad Amin being a close confidant of Finance Minister Ishaq Dar, critics of the government argued that a free and impartial audit of the much-touted NPP was not possible.
Former AGP Buland Akhtar Rana, who was unceremoniously removed through a reference before the Supreme Judicial Council, claims he was victimised because he questioned the federal government’s unchecked spending in the power sector.
With Prime Minister Nawaz Sharif back in the country after his three-week trip abroad, the focus will now be on how to get third-party clearance for the NPP.
Talking to Dawn, a senior government official linked to the power sector said, “There were so many missing links in the NPP -- primarily because Punjab Chief Minister Shahbaz Sharif was in the driving seat all along -- that responsibility has to be fixed on somebody.”
There are a few obvious questions which have to be answered even if it is just the AGP conducting an audit of the NPP, added the official.
“First of all, why did the Khawaja Asif-led Ministry of Water and Power cede control of the NPP to the Punjab chief minister, who babysat the project through a handpicked bureaucrat,” he asked.
“Who re-negotiated the bloated cost of the NPP to around Rs58 billion and how? What happened to the hoard of engineers, including the managing director, who were sent abroad for technical training to run the NPP?”
“The NPP is a classic example of management failure because the government wanted to complete it on war-footing; therefore, rules and regulations were violated at every step of the way,” the official said.
The official explained that even if the Punjab chief minister had taken over the project, for all practical purposes, it remained the responsibility of the federal government.
In a recent letter to the Genco Holding Company, which has constituted a four-member committee to fix responsibility for the inordinate delay in power generation at the plant, Captain M. Mehmood raised some interesting questions.
For example, he said, three of the four inquiry members hailed from Sindh, “which raises the fear that the proceedings of the committee may get steered by political pressures and differences,” as the NPP was Punjab-based.
Unaware that Justice Zahid had refused to head the inquiry commission, Captain Mehmood wrote that a Genco-led investigation “can potentially influence the inquiry that’s to be conducted under Justice Zahid.”
“This shows a complete lack of coordination between the NPP MD and the ministry regarding a free and fair investigation, which the PM had repeatedly committed to,” said a ruling party MNA. “The sooner the government managed to absolve itself of the blame in this controversy, “the better it would be able to counter political opponents,” he said.
Published in Dawn, October 6th , 2015
------------------------------------------
Sound and fury over Nandipur come to naught
http://www.dawn.com/news/1211094/sound-and-fury-over-nandipur-come-to-naught
ISLAMABAD: Even as top government functionaries, including Prime Minister Nawaz Sharif himself, proclaim that an impartial inquiry into the alleged mismanagement of the Nandipur Power Project (NPP) will vindicate them, there seems to be no movement on efforts to find out what actually went wrong in the multi-billion rupee project.
Former Supreme Court judge, retired Justice Nasir Aslam Zahid has turned down the PM’s offer to head an inquiry commission into the NPP scandal. Sources say that Justice Zahid expressed his unavailability to lead the inquiry due to personal commitments.
Take a look: Nandipur power plant failure: what needs to be probed?
Meanwhile, embattled NPP Managing Director Captain M. Mehmood has also called into question the formation of a separate inquiry committee — initiated by the National Electric Power Regulatory Authority (Nepra) — saying, “Since the forum evoked is not appropriate, therefore, a conflict of interest can occur.”
Moreover, a private audit firm selected by the government to scrutinise the 425MW NPP has refused to conduct a commercial and technical appraisal of the project and has only agreed to examine the financial side of the project.
Only AGP looking into irregularities in Rs58bn project
As a result, the auditor general of Pakistan (AGP) is the only third party that is assessing the project and looking into the reasons behind the delays incurred and examining how, after an investment of Rs57 billion, the plant still failed to produce electricity.
However, with the incumbent AGP Rana Asad Amin being a close confidant of Finance Minister Ishaq Dar, critics of the government argued that a free and impartial audit of the much-touted NPP was not possible.
Former AGP Buland Akhtar Rana, who was unceremoniously removed through a reference before the Supreme Judicial Council, claims he was victimised because he questioned the federal government’s unchecked spending in the power sector.
With Prime Minister Nawaz Sharif back in the country after his three-week trip abroad, the focus will now be on how to get third-party clearance for the NPP.
Talking to Dawn, a senior government official linked to the power sector said, “There were so many missing links in the NPP -- primarily because Punjab Chief Minister Shahbaz Sharif was in the driving seat all along -- that responsibility has to be fixed on somebody.”
There are a few obvious questions which have to be answered even if it is just the AGP conducting an audit of the NPP, added the official.
“First of all, why did the Khawaja Asif-led Ministry of Water and Power cede control of the NPP to the Punjab chief minister, who babysat the project through a handpicked bureaucrat,” he asked.
“Who re-negotiated the bloated cost of the NPP to around Rs58 billion and how? What happened to the hoard of engineers, including the managing director, who were sent abroad for technical training to run the NPP?”
“The NPP is a classic example of management failure because the government wanted to complete it on war-footing; therefore, rules and regulations were violated at every step of the way,” the official said.
The official explained that even if the Punjab chief minister had taken over the project, for all practical purposes, it remained the responsibility of the federal government.
In a recent letter to the Genco Holding Company, which has constituted a four-member committee to fix responsibility for the inordinate delay in power generation at the plant, Captain M. Mehmood raised some interesting questions.
For example, he said, three of the four inquiry members hailed from Sindh, “which raises the fear that the proceedings of the committee may get steered by political pressures and differences,” as the NPP was Punjab-based.
Unaware that Justice Zahid had refused to head the inquiry commission, Captain Mehmood wrote that a Genco-led investigation “can potentially influence the inquiry that’s to be conducted under Justice Zahid.”
“This shows a complete lack of coordination between the NPP MD and the ministry regarding a free and fair investigation, which the PM had repeatedly committed to,” said a ruling party MNA. “The sooner the government managed to absolve itself of the blame in this controversy, “the better it would be able to counter political opponents,” he said.
Published in Dawn, October 6th , 2015
I_PLAY_BAD
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I_PLAY_BAD
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Pakistan's economy facing revenue generation crisis: report
ISLAMABAD: Despite recent optimism surrounding Pakistan's economy, the country is facing an “existential crisis” stemming from its woeful tax collection rates and inability to finance itself, a report said Wednesday.
Pakistan's economy grew at 4.24 per cent during the 2014-2015 fiscal year with per capita income rising a significant 9.25 per cent, markers that come as investor confidence in the long-underperfoming South Asian giant have also increased.
But according to the report by non-profit organisation Raftar, funded by Britain's Department for International Development (DFID), Pakistan's economy continues to rely heavily on “commercial loans, concessionary donor loans and aid”.
The country's tax-to-GDP ratio of 9.4 per cent is among the lowest in the world, leading to a public debt of 17 trillion rupees ($163 billion). This an almost three-fold increase since 2008 for the $232 billion economy, with 44 per cent of tax revenue going toward interest payments.
The report blamed the lack of a “tax culture” on non-revenue sources of funds the country has historically enjoyed in the form of foreign aid and loans.
It said 68 per cent of tax revenue was being generated through indirect taxes on fuel, food and electricity, which unfairly penalises the poor.
The lack of revenue collection also negatively affects infrastructure development including power generation, with the country facing a massive shortfall of up to 4000MW in the summer that shaves about $15 billion off the country's GDP.
Pakistan is currently in a $6.6 billion loan programme with the International Monetary Fund, which was granted on condition that Islamabad carried out extensive economic reforms, particularly in the energy and taxation sectors.
Link : http://www.dawn.com/news/1202955
ISLAMABAD: Despite recent optimism surrounding Pakistan's economy, the country is facing an “existential crisis” stemming from its woeful tax collection rates and inability to finance itself, a report said Wednesday.
Pakistan's economy grew at 4.24 per cent during the 2014-2015 fiscal year with per capita income rising a significant 9.25 per cent, markers that come as investor confidence in the long-underperfoming South Asian giant have also increased.
But according to the report by non-profit organisation Raftar, funded by Britain's Department for International Development (DFID), Pakistan's economy continues to rely heavily on “commercial loans, concessionary donor loans and aid”.
The country's tax-to-GDP ratio of 9.4 per cent is among the lowest in the world, leading to a public debt of 17 trillion rupees ($163 billion). This an almost three-fold increase since 2008 for the $232 billion economy, with 44 per cent of tax revenue going toward interest payments.
The report blamed the lack of a “tax culture” on non-revenue sources of funds the country has historically enjoyed in the form of foreign aid and loans.
It said 68 per cent of tax revenue was being generated through indirect taxes on fuel, food and electricity, which unfairly penalises the poor.
The lack of revenue collection also negatively affects infrastructure development including power generation, with the country facing a massive shortfall of up to 4000MW in the summer that shaves about $15 billion off the country's GDP.
Pakistan is currently in a $6.6 billion loan programme with the International Monetary Fund, which was granted on condition that Islamabad carried out extensive economic reforms, particularly in the energy and taxation sectors.
Link : http://www.dawn.com/news/1202955
I_PLAY_BAD
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Pakistan’s Looming Economic Crisis
Report finds that only 0.3 percent of country’s population pays income tax.
Despite recent optimism surrounding Pakistan’s economy, the country is facing an “existential crisis” stemming from its woeful tax collection rates and inability to finance itself, a report said Wednesday.
Pakistan’s economy grew at 4.24 percent during the 2014-2015 fiscal year with per capita income rising a significant 9.25 percent, markers that come as investor confidence in the long-under perfoming South Asian nation have also increased. But according to the report by non-profit organization Raftar, funded by Britain’s Department for International Development (DFID), Pakistan’s economy continues to rely heavily on “commercial loans, concessionary donor loans and aid.”
The report found that only 0.3 percent, or 500,000 people, in Pakistan pay income tax, while an additional 400,000 claim they have no taxable income. “To put this further in perspective, there are more people flying globally in airplanes at any point in the air than there are direct tax payers in Pakistan,” it added.
The country’s tax-to-GDP ratio of 9.4 percent is among the lowest in the world, leading to a public debt of Rs. 17 trillion. This is an almost threefold increase since 2008 for the $232 billion economy, with 44 percent of tax revenue going toward interest payments.
The report also noted that international aid was not as substantive as believed. “Over the last eight years, foreign project assistance in the development budget has only been 15 percent. Overall, net external assistance has only financed 4 percent of the budget,” it added.
The report blamed the lack of a “tax culture” on non-revenue sources of funds the country has historically enjoyed in the form of foreign aid and loans. It said 68 percent of tax revenue was being generated through indirect taxes on fuel, food and electricity, which unfairly penalizes the poor, and leads people to believe they are being taxed “a lot” despite not filing any returns for income tax.
The lack of revenue collection also negatively affects infrastructure development including power generation, with the country facing a massive shortfall of up to 4000MW in the summer that shaves about $15 billion off the country’s GDP.
According to the report, the government needs to focus on the next generation to overcome these limitations. By educating children on the importance of taxation, it says, and explaining how the state delivers services to the people, it can build a tax culture.
The Raftar report claims that if Pakistan can improve its tax collection, it could witness a growth of 3.7 percent GDP per capita. “If Pakistan can raise its own revenues to address the energy shortfall in the country, it can stem estimated losses to the economy of Rs. 1.5 trillion (that is more than the annual interest payments the country has to make).”
Link : http://newsweekpakistan.com/pakistans-looming-economic-crisis/
Report finds that only 0.3 percent of country’s population pays income tax.
Despite recent optimism surrounding Pakistan’s economy, the country is facing an “existential crisis” stemming from its woeful tax collection rates and inability to finance itself, a report said Wednesday.
Pakistan’s economy grew at 4.24 percent during the 2014-2015 fiscal year with per capita income rising a significant 9.25 percent, markers that come as investor confidence in the long-under perfoming South Asian nation have also increased. But according to the report by non-profit organization Raftar, funded by Britain’s Department for International Development (DFID), Pakistan’s economy continues to rely heavily on “commercial loans, concessionary donor loans and aid.”
The report found that only 0.3 percent, or 500,000 people, in Pakistan pay income tax, while an additional 400,000 claim they have no taxable income. “To put this further in perspective, there are more people flying globally in airplanes at any point in the air than there are direct tax payers in Pakistan,” it added.
The country’s tax-to-GDP ratio of 9.4 percent is among the lowest in the world, leading to a public debt of Rs. 17 trillion. This is an almost threefold increase since 2008 for the $232 billion economy, with 44 percent of tax revenue going toward interest payments.
The report also noted that international aid was not as substantive as believed. “Over the last eight years, foreign project assistance in the development budget has only been 15 percent. Overall, net external assistance has only financed 4 percent of the budget,” it added.
The report blamed the lack of a “tax culture” on non-revenue sources of funds the country has historically enjoyed in the form of foreign aid and loans. It said 68 percent of tax revenue was being generated through indirect taxes on fuel, food and electricity, which unfairly penalizes the poor, and leads people to believe they are being taxed “a lot” despite not filing any returns for income tax.
The lack of revenue collection also negatively affects infrastructure development including power generation, with the country facing a massive shortfall of up to 4000MW in the summer that shaves about $15 billion off the country’s GDP.
According to the report, the government needs to focus on the next generation to overcome these limitations. By educating children on the importance of taxation, it says, and explaining how the state delivers services to the people, it can build a tax culture.
The Raftar report claims that if Pakistan can improve its tax collection, it could witness a growth of 3.7 percent GDP per capita. “If Pakistan can raise its own revenues to address the energy shortfall in the country, it can stem estimated losses to the economy of Rs. 1.5 trillion (that is more than the annual interest payments the country has to make).”
Link : http://newsweekpakistan.com/pakistans-looming-economic-crisis/
I_PLAY_BAD
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IMF says Pakistan at high risk of economic crisis
The International Monetary Fund gave Pakistan a sobering assessment on Thursday, saying its economy was at a high risk of deteriorating into crisis and growth was too slow to significantly improve people's living standards.
The global lender has approved a $6.7 billion loan package to help the South Asian nation revive its ailing economy, rebuild reserves and prevent a balance of payments crisis.
"Economic performance in Pakistan has been substandard in recent years," the IMF said, adding that gross domestic product growth averaged only 3 percent over the past five years.
"Executive directors noted that Pakistan's economic vulnerabilities and crisis risks are high, with subpar growth and unsustainable fiscal and balance of payments positions."
Pakistan averted a balance of payments crisis in 2008 by securing a $11 billion IMF loan but that was suspended two years ago after economic and reform targets were missed.
Chronic gas and electricity shortages, violent crime and a Taliban insurgency have all hampered growth and contributed to falling foreign investment in Pakistan.
"A lack of reliable electricity supply and a difficult security situation in large parts of the country have contributed to the deterioration," the IMF said, while welcoming the new government's economic reform programme.
The Pakistani rupee currency depreciated about 5 percent against the dollar during the 2012/13 fiscal year. A decade ago annual economic growth rates were about 10 percent.
To secure the latest programme, Pakistan had to fulfil conditions set by the IMF, including slashing costly subsidies on electricity and sending out notices to 10,000 delinquent taxpayers.
Link : http://in.reuters.com/article/2013/09/12/imf-pakistan-idINDEE98B0CW20130912
The International Monetary Fund gave Pakistan a sobering assessment on Thursday, saying its economy was at a high risk of deteriorating into crisis and growth was too slow to significantly improve people's living standards.
The global lender has approved a $6.7 billion loan package to help the South Asian nation revive its ailing economy, rebuild reserves and prevent a balance of payments crisis.
"Economic performance in Pakistan has been substandard in recent years," the IMF said, adding that gross domestic product growth averaged only 3 percent over the past five years.
"Executive directors noted that Pakistan's economic vulnerabilities and crisis risks are high, with subpar growth and unsustainable fiscal and balance of payments positions."
Pakistan averted a balance of payments crisis in 2008 by securing a $11 billion IMF loan but that was suspended two years ago after economic and reform targets were missed.
Chronic gas and electricity shortages, violent crime and a Taliban insurgency have all hampered growth and contributed to falling foreign investment in Pakistan.
"A lack of reliable electricity supply and a difficult security situation in large parts of the country have contributed to the deterioration," the IMF said, while welcoming the new government's economic reform programme.
The Pakistani rupee currency depreciated about 5 percent against the dollar during the 2012/13 fiscal year. A decade ago annual economic growth rates were about 10 percent.
To secure the latest programme, Pakistan had to fulfil conditions set by the IMF, including slashing costly subsidies on electricity and sending out notices to 10,000 delinquent taxpayers.
Link : http://in.reuters.com/article/2013/09/12/imf-pakistan-idINDEE98B0CW20130912
Neo
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Posting TWO YEAR old news, damn you are slow!
Neo
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Moody’s maintains stable outlook for Pakistan
APP
ISLAMABAD: Moody’s Investors Service has assigned a provisional rating of (P)B3 to Pakistan’s announced global bond offering while keeping the outlook stable.
“Pakistan’s B3 issuer rating reflects moderate economic strength with a supply-constrained economy that has been resistant to structural change,” the ratings agency said in a statement issued on Friday. “Although the scale of the economy is relatively large, globally, Pakistan’s per-capita income level is relatively very low.”
It said the implementation of the China-Pakistan Economic Corridor (CPEC) will help bolster growth through investment in transportation and power generation infrastructure.
The ratings agency added that the government has gained significant traction on reforms under the International Monetary Fund’s programme, key goals of which include deficit reduction, resolving constraints in the energy sector, and the privatisation of several state-owned enterprises.
However, it observed that other factors that drive Pakistan’s sovereign credit rating are its very low fiscal strength and high susceptibility to event risk.
“Key fiscal and external credit metrics are weak intrinsically and relative to ratings peers. These methodological factors are compounded by the country’s narrow tax base, low savings and shallow capital markets — all of which hinder stable domestic financing of sizable budget deficits,” the statement said. “However, the government is striving to lengthen the maturity of debt which will reduce gross financing needs.”
It said the government debt rollover risk is also reduced by sizeable recourse to domestic bank lending and, to some degree, by a debt structure which consists of long-tenor credits from multilateral and official bilateral creditors.
The challenging operating environment, susceptibility to economic risks and political shocks, coupled with a high concentration to the sovereign, links the health of the banking system very closely to that of the government. Banks are well managed but remain vulnerable to cyclical economic risks and to political shocks.
The stable outlook represents its expectation of balanced upside and downside risks, Moody’s said, adding that upward pressures stem from support from multilateral and bilateral lenders, which bolster an improving foreign reserve position and ongoing reform progress.
“Despite positive ongoing developments, rating constraints which would put downward pressures stem from Pakistan’s very low fiscal strength, due to its high debt levels and weak debt affordability in light of a narrow revenue base,” it added.
The ratings agency identified Pakistan’s “deeply entrenched weaknesses in the power sector” as a bottleneck to growth.
http://www.dawn.com/news/1207908/moodys-maintains-stable-outlook-for-pakistan
APP
ISLAMABAD: Moody’s Investors Service has assigned a provisional rating of (P)B3 to Pakistan’s announced global bond offering while keeping the outlook stable.
“Pakistan’s B3 issuer rating reflects moderate economic strength with a supply-constrained economy that has been resistant to structural change,” the ratings agency said in a statement issued on Friday. “Although the scale of the economy is relatively large, globally, Pakistan’s per-capita income level is relatively very low.”
It said the implementation of the China-Pakistan Economic Corridor (CPEC) will help bolster growth through investment in transportation and power generation infrastructure.
The ratings agency added that the government has gained significant traction on reforms under the International Monetary Fund’s programme, key goals of which include deficit reduction, resolving constraints in the energy sector, and the privatisation of several state-owned enterprises.
However, it observed that other factors that drive Pakistan’s sovereign credit rating are its very low fiscal strength and high susceptibility to event risk.
“Key fiscal and external credit metrics are weak intrinsically and relative to ratings peers. These methodological factors are compounded by the country’s narrow tax base, low savings and shallow capital markets — all of which hinder stable domestic financing of sizable budget deficits,” the statement said. “However, the government is striving to lengthen the maturity of debt which will reduce gross financing needs.”
It said the government debt rollover risk is also reduced by sizeable recourse to domestic bank lending and, to some degree, by a debt structure which consists of long-tenor credits from multilateral and official bilateral creditors.
The challenging operating environment, susceptibility to economic risks and political shocks, coupled with a high concentration to the sovereign, links the health of the banking system very closely to that of the government. Banks are well managed but remain vulnerable to cyclical economic risks and to political shocks.
The stable outlook represents its expectation of balanced upside and downside risks, Moody’s said, adding that upward pressures stem from support from multilateral and bilateral lenders, which bolster an improving foreign reserve position and ongoing reform progress.
“Despite positive ongoing developments, rating constraints which would put downward pressures stem from Pakistan’s very low fiscal strength, due to its high debt levels and weak debt affordability in light of a narrow revenue base,” it added.
The ratings agency identified Pakistan’s “deeply entrenched weaknesses in the power sector” as a bottleneck to growth.
http://www.dawn.com/news/1207908/moodys-maintains-stable-outlook-for-pakistan
thethinker
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Those "troll" posts were not "cleaned up" as you claim.
Just moved to a relevant thread, a thread about what Pakland is .
Here is the thread with all the posts intact :
Pakistan's Descent into Chaos: Terrorist & Drone Attacks
http://defenceforumindia.com/forum/...rorist-drone-attacks.396/page-48#post-1076077
Count your blessings or whatever that you are getting a certain degree of relaxed moderation here even if you play victimhood card wrt DFI moderation whenever possible while trolling India at same time.
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