Current economic trends
The first six months of 2021-22 have come to an end. This is an appropriate time to identify the ongoing economic trends from the viewpoint of assessing the prospects for…
Current economic trends
Six months have elapsed since COVID-19 first hit Pakistan. This is an opportune time to get, more or less, a precise assessment of the negative impact of the pandemic. Since…
Twin deficit
ISLAMIC banking currently accounts for 17 per cent of overall banking assets in Pakistan. Notwithstanding the talk about its double-digit growth, its share is not impressive, particularly for a predominantly…
Songs of deficits past
LESS than a year into their growth spurt the government finds itself reckoning with powerful imbalances emerging in the economy. It was never going to be any different. Our own…
Fiscal deficit remains main threat to economy
It is reported that fiscal deficit was recorded at 6.1% of GDP (Rs 2100 billion), in the first eleven-month of the fiscal year. Not only is this a very alarming…
Runaway budget deficits
The last three years witnessed a steady decline in the consolidated budget deficit during the tenure of the IMF program. The deficit was 6.4% of the GDP in 2012-13, excluding…
Reducing the primary deficit
Contrary to the practice in previous IMF Programs with Pakistan, the emphasis in stabilization of public finances this time will not be on reduction in the overall budget deficit but…
Reducing the primary deficit
Reports on the on-going negotiations between the Ministry of Finance (MOF) and the IMF reveal that among the many steps and reforms being discussed a heavy emphasis is being placed…
Understating the budget deficit
The process of fiscal stabilization requires a big downward adjustment in the size of the consolidated budget deficit of the Federal and Provincial Governments. Therefore, it is of critical importance…
External account challenges
THE key responsibility of any government is to ensure macroeconomic stability by removing uncertainties in the macroeconomic environment and any unpredictability arising from policy actions. As has been argued earlier,…
