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
Pakistan Rupee Exchange Rate