As Pakistan faces a difficult economic future, Finance Minister Muhammad Aurangzeb's leadership will be a crucial factor in determining whether the country can emerge from this crisis stronger or more vulnerable. Interview: Sohail ChaudhryMr. Muhammad Aurangzeb, Pakistan's Finance Minister, is a figure whose role has become increasingly pivotal as the country navigates the turbulent waters of economic crisis and geopolitical complexity. His ascent to one of the most challenging portfolios in the Pakistani cabinet is a testament to both his expertise and the immense challenges facing the nation's economy. With a background steeped in finance and banking, Aurangzeb is seen by many as a technocrat capable of implementing the tough reforms ...
August 18, 2024 at 9:45 pm | Economic Affairs
Pakistan has invested significant resources in developing its infrastructure, leading to a notable transformation of the country's business environment, which has positioned it to unleash growth potential and transition towards a knowledge-based economy. Imtiaz AhmadPakistan celebrates its 78th Independence Day by reiterating its dedication to establish a peaceful society, nurturing an enabling business environment, fostering foreign investment, and driving inclusive and sustainable development to secure a prosperous future. Pakistan is increasingly being recognized as an appealing hub for both local and international investors, offering a distinctive combination of strategic geographical location, abundant natural and human resource...
August 18, 2024 at 9:35 pm | Economic Affairs
The Finance Bill 2024 introduces pivotal measures to catalyze economic growth, reinforce fiscal responsibility, and promote socio-economic development. Ghulam MurtazaThe budgetary dust has begun to settle, and the populace is gradually accepting it as an inevitable reality as usual as some hue and cry. A substantial amount of ink has been expended on this topic, with both proponents and opponents presenting strong arguments. As a critic, I have numerous concerns, primarily because this budget does not seem to serve public interests by large. However, when we consider the contextual circumstances, it becomes evident that the IMF tied government had no means to provide relief to the general public. It is a common practice for ou...
August 18, 2024 at 9:30 pm | Economic Affairs
The government should focus on reforming the economy as only a deep-rooted structural reforms with strong political will can ensure sustained economic growth. Dr. Abid Rashid Gill Economic stability is a foundational aspect of a country's overall security. It encompasses the ability of a nation to provide employment opportunities, and maintain a robust standard of living for its citizens. When a country has strong economic stability, it can effectively address poverty, reduce inequality, and prevent social unrest, which are key factors in maintaining internal stability. Additionally, economic stability enables a nation to invest in defence and infrastructure, enhancing its ability to protect against external threats. Thus, econom...
August 18, 2024 at 9:22 pm | Economic Affairs
Today, as we celebrate 77 years of independence, we find ourselves in a critical economic and industrial situation. Mashood KhanAs we celebrate 77 years of independence this month, we find ourselves struggling to overcome economic challenges. Comparing our progress with that of countries that gained independence around the same time, it becomes evident that we have fallen short in many areas. We have a talented youth population, excelling in education, sports, and various skills by own self, yet we are not providing them with the necessary health, education, and skill development opportunities. Many are willing to leave the country. Why? This is a question our government must address. The South Korean automobile industry be...
August 18, 2024 at 9:18 pm | Economic Affairs
The China-Pakistan Economic Corridor (CPEC) has been a pivotal initiative, significantly contributing to infrastructure and energy sectors, essential for sustained growth. Saqib Rafiq This year, Pakistan will celebrate the 77th anniversary of its independence. It will be a moment of celebration but also reflection as the country has made strides in many areas but is still far from achieving its promising potential. Since 1947, the journey has been marked by significant challenges and achievements. As the country continues to navigate its complex economic landscape, there is renewed hope for revitalizing business and industry despite hard choices. Pakistan, a country with vast potential and a resilient populace, stands at a...
August 18, 2024 at 9:12 pm | Economic Affairs
The China-Pakistan Economic Corridor (CPEC) has been a pivotal initiative, significantly contributing to infrastructure and energy sectors, essential for sustained growth. Farhan Qureshi As we mark another year of our independence, it's a time for reflection on the significant economic progress Pakistan has achieved, driven by a collective commitment to growth and stability. My journey, like that of our nation—from a humble beginning to an emerging market on the global stage—speaks to a shared resilience, innovation, and unwavering belief in what we can accomplish together. Returning from the UK with a deep-seated patriotism, I am merely one of many who are quietly contributing to our homeland's prosperity through vari...
August 18, 2024 at 8:44 pm | Economic Affairs
Pakistan is one of the most resilient nations in the world, with a history of overcoming adversity. The country's strength lies in its people—visionary leaders, hardworking citizens, and, most importantly, its youth. Prof. Engr. Zamir Ahmed AwanPakistan is indeed facing a challenging period, with complex and multifaceted issues that include economic instability, political uncertainty, and the persistent threat of terrorism. These challenges are interconnected, with economic instability and political instability feeding into the conditions that allow terrorism to thrive. Unfortunately, anti-Pakistan media outlets have been quick to exploit these difficulties, projecting a pessimistic view of the country's future. They spread nar...
August 18, 2024 at 8:36 pm | Economic Affairs
The fundamental question is how can the wide-ranging negative impact of the huge additional tax burden be managed, to reduce the adverse impacts on the economy? Dr. Hafiz A. Pasha The Federal budget of 2024-25 has targeted for the biggest increase ever in the incidence of taxes. FBR revenues are expected to rise from Rs 9252 billion in 2023-24 to Rs 12,970 billion in 2024-25, with a growth rate of over 40%. The other tax, petroleum levy, has been classified as a non-tax revenue by the Ministry of Finance. However, some years ago it was treated as a tax. IMF still classifies it as a tax. Revenue from this source is expected to also show a big increase of over 33% in 2024-25. Overall, total tax revenues of the Federal government...
August 18, 2024 at 1:21 pm | Economic Affairs
Dr. Zafar MahmoodThe economy of Pakistan is not in good shape, it is trapped in a low economic growth (predicted growth rate for FY2024 is 2% as compared with -0.5% in FY2023), persistently high inflation (30%), high open unemployment rate (8.5%), falling investment rate (13.6% in 2023 compared with 15.7% in 2022), excessive fiscal deficit (7.7% in FY2023 well above the targeted 4.9%), and a deteriorating external balance position. Currently, Pakistan has foreign reserves to pay only about 6 months' import bill. Foreign exchange reserves are low owing to low foreign capital inflows, heavy debt repayment, and slow growth in foreign earnings. The gross savings rate in Pakistan is persistently low (6% compared with 30% in India) as com...
August 18, 2024 at 1:09 pm | Economic Affairs
The Council has put Pakistan on development course in just a little more than a year, with the agriculture being the primary harbinger has started providing positive outcomes - thanks to coordinated efforts and careful consideration by the SIFC leadership. Rizwan Mir TI(M))For a country to be strong, it is very important for it to be secure as well, so that it can sustain and develop under all types of situations. The elements of strength for a country include the security of its borders, the internal security, food and water security, security from climatic changes and disasters, security from dis-information, and above all the economic security. With all these elements of security in place, we can dream of being a strong and stable...
August 18, 2024 at 12:58 pm | Economic Affairs
Operation Azm-e-Istehkam is not aimed at kinetic response alone turning country into a war zone, but a reinvigorated holistic national campaign to rid country of increasing terrorism and put it on road to a lasting peace, stability and prosperity. Tahir MehmoodThe federal government on 23rd June 2024 at culmination of the National Apex Committee session issued a communique that enunciated a consensus on launch of a reinvigorated national response 'Operation Zarb-e-Istehkam' against growing menace of terrorism and violent extremism in the country. The session was attended by important stakeholders from civilian government and defence establishment. However, the mere announcement of the operation created such a hullabaloo in the co...
August 18, 2024 at 12:47 pm | Economic Affairs
It is heartening to see that Prime Minister Shehbaz Sharif has decided to work on a comprehensive five-year roadmap for economic resurgence of Pakistan. Naghmana Hashmi Faltering economy, rising political instability, resurgence of terrorism all greeted Shahbaz Sharif as he took oath of office for the second time in February this year. That these daunting issues would test both the nerves and governance skills of the new premier was evident right from the start. Although his administrative skills were widely recognized during his three terms as chief minister of Punjab, his handling of economy during 16-months previous stint as PM left much to be desired and did not inspire the confidence of anyone in the country or abroad. Ir...
August 18, 2024 at 12:31 pm | Economic Affairs
While the government has been making concerted efforts to address the terrorism in order to attract investment and revive the economy, some recent macroeconomic developments are noteworthy. Dr. Talat Anwar The security and economic development are interlinked as there is no economic development without security and there is no security without development. In this backdrop, the government has recently launched a resolve for growth & stability (Azm-e-Istehkam) that combines military action to neutralise immediate threats with socioeconomic development to address the root causes of extremism in conflict zones. The root causes of current security concern with terrorism and extremism go back to the 9/11 attack in US with its c...
August 18, 2024 at 12:12 pm | Economic Affairs
With its stellar performance in 2023, Faysal Bank has set a new benchmark for excellence in the banking industry, paving the way for continued success and prosperity in the years to come Faysal Bank Limited (PSX: FABL) has reported its highest-ever annual profit in 2023, solidifying its position as a powerhouse in Pakistan's banking sector. The bank's net profit surged to an impressive Rs. 20.2 billion, marking a remarkable 77% increase compared to the previous year. This substantial growth in profitability demonstrates Faysal Bank's resilience and ability to capitalize on market opportunities despite challenging economic conditions. The bank's performance in 2023 reflects its strategic initiatives and efficient management of resourc...
February 10, 2024 at 3:57 pm | Economic Affairs
This unprecedented move positions China as the first nation to extend formal recognition to the Taliban-led government, showcasing both the country's pragmatic diplomacy and its commitment to fostering a shared future with Afghanistan. By Qaiser Nawab In a groundbreaking development, Chinese President Xi Jinping formally acknowledged Mawlavi Asadullah, also known as Bilal Karimi, as the Ambassador Extraordinary and Plenipotentiary of the Islamic Emirate of Afghanistan. This unprecedented move positions China as the first nation to extend formal recognition to the Taliban-led government, showcasing both the country's pragmatic diplomacy and its commitment to fostering a shared future with Afghanistan. Beyond fostering diplomatic...
February 7, 2024 at 5:43 pm | Economic Affairs
Pakistan Rupee Exchange Rate