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With IMF’s ninth review pending since September, Pakistan has desperately been scrambling to secure financing to meet external payment obligations for current financial year Pakistan has been struggling to pay salaries to staff of some of its missions abroad, citing "fiscal crunch" and "shortage of dollars" By Ghulam Haider Pakistan's economic turmoil stoked by International Monetary Fund's loan trance and nosediving rupee has hit a new low as the shortage of US dollars is making it extremely difficult for local banks to make international payments in foreign currency. Amid the ongoing currency fluctuations in cash-strapped Pakistan, a black market for dollars has sprung up in the country after the State Bank of Pakistan (SBP...

December 16, 2022 at 6:19 pm | Economic Affairs

China Index 2022 measures Beijing’s overseas influence in 82 country profiles across the nine domains of military, domestic politics, law enforcement, media, academia, society, economy, foreign policy and technology China has been ramping up attempts to win hearts and minds of citizens of various countries through language & media campaignsBy Ghulam HaiderPakistan has been ranked at the top of the list of the countries, which are the most exposed to China’s influence in the domains of military, foreign policy and technology in China Index 2022. Cambodia and Singapore are second and third in this list, while Paraguay, North Macedonia and Albania are ranked as the least influenced countries.Doublethink Lab and China in the World N...

December 10, 2022 at 2:46 pm | Economic Affairs

The three major threats to business growth identified in the survey are inflation (78 per cent), high taxation (71 per cent) and currency devaluation (70 per cent)By Ghulam HaiderThe Business Confidence Index (BCI) Survey (Wave-22) carried out by the Overseas Investors Chamber of Commerce and Industry (OICCI) has revealed that the business confidence has nosedived in the last six months across different sectors of the economy in Pakistan.The survey, which has been conducted across the country in September-October, says that the overall business confidence score dropped to negative four per cent, down 21 percentage points from the previous score of 17% recorded in Wave-21 held in March-April.“The substantial decline in the overall busines...

December 10, 2022 at 2:46 pm | Economic Affairs

Earlier, the risk of default - measured through a 5-year credit default swap (CDS) - hit a record high of 123 per cent last month. By Ghulam Haider Cash-strapped Pakistan has averted a default on its repayment of $1 billion against a matured international Sukuk (Sharia-compliant bond) three days ahead of schedule. The country was to return the maturing investment in the US dollar-denominated global bond on December 5. "Yes, we have made the payment of $1 billion," State Bank of Pakistan (SBP) spokesperson Abid Qamar told. The bank has made the payment to Citigroup which would transfer the funds onward to the investors. Earlier, the risk of default - measured through a 5-year credit default swap (CDS) - hit a record high of 123 ...

December 5, 2022 at 6:43 pm | Economic Affairs

Reuse of needles and syringes, unscreened blood transfusions and sharing of surgical instruments driving increase in new cases By Ghulam Haider Pakistan has attained the ‘distinction’ of a country which home to the world’s largest population of hepatitis C patients, with nearly 10 million people infected by the virus amid rampant use of unclean syringes and unhygienic health services. Around half a million new infections have been detected in Pakistan between 2015 and 2021, while overall, there about 10 million people infected with the Hepatitis C virus in the country, according to the US Centre for Disease Analysis (CDA). The findings are the result of a two-year research and analysis conducted jointly by the CDA and Pakist...

December 5, 2022 at 6:43 pm | Economic Affairs

I extend my heartiest congratulations to the management of Economic Affairs Magazine on publishing a special edition on 75 years of independence of our homeland Pakistan. This magazine has always been a great source of providing keen economic insights on the policies undertaken by the government for the betterment of the economy. This year, we are celebrating 75th year of our independence. Being the Finance Minister of Pakistan, it is appropriate for me to begin by discussing the economic condition that we inherited when we came to power. Unfortunately, Pakistan's economy was in the worst recession at the time I was assigned the responsibility of Finance Minister of Pakistan a few months ago. Exports were plummeting, imports were surgin...

November 30, 2022 at 1:34 pm | Economic Affairs

It gives me immense pleasure that Pakistan has celebrated 75 years of its independence, with monumental successes in varied fields including the economy. It is historically-evidenced that at the time of independence, Pakistan faced myriad of the economic, social and political problems. Pakistan's economy was mainly dependent on agriculture and with a small industrial base. Pakistan's major exports were primary raw materials mainly exported to India (almost 60% of exports) and imports were mainly manufactured goods. Pakistan's total exports in 1948-49 were Rs.984 million, comprising of mainly jute, cotton & cotton yarn, and hide & skins. Pakistan inherited a weak industrial base and there was no large-scale manufacturing indus...

November 30, 2022 at 1:28 pm | Economic Affairs

On the joyous occasion of the 75th anniversary of Pakistan's Independence, I extend my heartiest felicitations to the entire nation. This day reminds us of the innumerable sacrifices of our Founding Fathers under the courageous leadership of Quaid-e-Azam Muhammad Ali Jinnah. Today, we also reaffirm our resolve to uphold Pakistan's ideology and make Pakistan an ideal modern Islamic nation-state. This year, we are also celebrating the Diamond Jubilee of our independence and various ceremonies are being organized across the country to mark this propitious occasion. The aim of these events is to educate and create awareness among our people, especially the Pakistani youth, about the significance of national solidarity, Pakistan's ideology a...

November 30, 2022 at 1:25 pm | Economic Affairs

As we are commemorating the 75 years of Independence in the month of August, this is an occasion to reiterate our firm resolve to uphold our national values of unity, faith and discipline as envisioned by Quaid-i-Azam Muhammad Ali Jinnah. This auspicious occasion is also a moment to reaffirm our pledge to continue pursuing the vision of Father of the Nation. We must pay tribute to all those sons of the soil who laid their lives while defending and protecting territorial as well as ideological frontiers of the motherland. Amongst all celebrations, we must pause and ponder as to how far we have been able to achieve those ideals that led to creation of an independent state. During past seven and a half decades of our journey, we have confr...

November 30, 2022 at 1:22 pm | Economic Affairs

As Pakistan's economy moves along its long-run trajectory, it has exhibited substantial changes in fundamentals that can be quantified mainly in terms of net economic growth gains and various other socioeconomic indicators. By Dr. Eatzaz Ahmad In today's world where every citizen has at least some access to media, it is not surprising that there has emerged a flood of gossips on almost all important matters including economy in the name of news, information and transformation of knowledge. Information itself is an economic good which is now formally priced. Unfortunately, most often negative news fetch relatively higher prices and gain more media space than positive news. For example, the news of increases in prices of consumer go...

November 30, 2022 at 1:17 pm | Economic Affairs

Sialkot's football producers with their hard work, innovative mindset and passion have brought Pakistan on world map as the Best Football producing country. By GM Siddique Sialkot city is a fertile border city of Pakistan with about six million population contributing 10% in the total exports of the country. It has many other references as Dr. Allama Muhammad Iqbal, Maulana Zafar Ali Khan, Zaheer Abbas, Shoaib Malik, Ijaz Ahmed and Shahnaz Sheikh. This is a city with the highest number of exporters. The sports and surgical goods exporters of Sialkot constructed the private airport, dry port, airline and now building hospital, university, and a school on their own. Its now connected with major cities like Lahore and Faisalabad through...

November 30, 2022 at 12:40 pm | Economic Affairs

Allah has gifted Pakistan with a lot of diversity in terms of demographics, ethnicity, geography, economic and natural resources. Not many countries can boast such a diversity especially within the range of comparable size. By Muhammad Mazhar Khan Pakistan turned seventy-five on 14 August 2022 and the country has witnessed a lot of transformation during these years. With the initial struggles for survival to near take-off in 1960s to the structural challenges of recent decade, each decade has its own story. Overall, the economic history of Pakistan is a tale of unfulfilled promises with spurts of boom and bust cycles. Growth triggered by consumption boom fails to sustain as economy overheats quickly. There can be many explanations bu...

November 30, 2022 at 12:27 pm | Economic Affairs

The Govt under Prime Minister Shahbaz Sharif's stewardship has taken some unpopular and tough decisions to put the economy on the road to recovery, and one such feat is securing the IMF's funding at a crunch time when the global economies indicators are dwindling.  By Kashif Rizwan Although Pakistan has been receiving financial assistance from the International Monetary Fund (IMF) since 1958, yet the successive governments in Pakistan, particularly since 1988, have been striving to Pakistan's economic sustainability. The economic performance of high Gross Domestic Product (GDP) rate between 5% to 6% in some years followed by 3% to 4% GDP rate for short periods. There are several geopolitical, structural and economic factors t...

November 30, 2022 at 12:10 pm | Economic Affairs

The Country has all the prerequisites including but not limited to perfect location, large talented and resilient population, hardworking labour force, unexplored natural resources and a modern outlook on life. By Ambassador Naghmana A. Hashmi “God has given us a grand opportunity to show our worth as architects of a new State; let it not be said that we did not prove equal to the task.” Quaid's address to Civil, Military and Air Force Officers, 11 October, 1947. Pakistan, the dream of Allama Iqbal, the result of tireless efforts and visionary leadership of Muhammad Ali Jinnah and sacrifices of millions of Muslims came into existence on 14 August 1947, which also coincided with 27th of Ramazan. Named by Chaudhry Rehmat Ali,...

November 30, 2022 at 12:00 pm | Economic Affairs

The Government is highly committed to introduce far-reaching reforms in every sector of the augment the economy of the country. Dr. Imtiaz Ahmed Pakistan is strategically located and it allows Pakistan to become an important trade, energy and transport corridor. Most importantly, Pakistan is a gateway to energy rich states of Central Asia, the Gulf States and far Eastern countries making Pakistan a place of endless opportunities and possibilities. The determination of its people made the country world's 24th largest economy in terms of purchasing power parity and 44th in terms of nominal GDP. In FY 2022, nominal GDP crossed Rs. 66,000 billion ($383 billion) whereas, per capita income reached at $1,798. According to World Bank esti...

November 30, 2022 at 11:44 am | Economic Affairs

By Imran Zia We are proud and gratified to Allah Almighty on this special occasion of 75th Independence Anniversary of Pakistan. At the time of its creation, Pakistan did not have enough capital to form a functioning government to serve its 24 million population and 8 million migrant refugees, nor it had the central bank to maintain foreign exchange reserves and issue currency.  In 1947 Pakistan had only Rs.200 million worth of foreign exchange in central treasury and income of Rs.450 million against the expenditure of more than Rs.800 million. The leadership of newly-established country under the stewardship of Quaid-e-Azam worked selflessly to lay strong foundations of the country where its people can prosper as per their ...

November 30, 2022 at 11:36 am | Economic Affairs