Pakistan's Economy - News and Updates

[salman77]

Pakistan to boost trade with Muslim states: Dar

DUBAI: Pakistan is ready to sign preferential trade agreements and free trade deals with Muslim countries to boost bilateral cooperation and investment in the days to come, Finance Minister Ishaq Dar said.
In an interview with Khaleej Times, Senator Mohammed Ishaq Dar said the government’s preference is to promote trade and investment among Muslim countries. “The trade among Muslim Ummah should increase and it is our priority to sign preferential trade agreements [PTAs] with Muslim states to promote bilateral relations and cooperation on economic front,” Dar said during his recent visit to Dubai.
Pakistan, which is the current chairman of the D-8 Group representing a combined population of one billion and a foreign trade market of $1 trillion, is very active to boost regional preferential trade, investment, energy cooperation and jobs for their workers. The group that includes Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey are signatories of the PTA, which is expected to be made operational shortly.
“We are ready to consider similar mutual bilateral trade benefits, which other Muslim countries will extend to Pakistan. We are ready to give them the same incentives that they offered to Pakistan,” Dar said, adding that Pakistan is a safe country for trade and investment in the region. To a question, he said Pakistan is willing to conclude free trade agreements, or FTAs, with GCC countries, but the issue was not part of the agenda during his talks with top UAE leadership.
“We did not specifically discuss the free trade deal with the GCC during the meetings, but we are ready to proceed with it,” he said. Pakistan has been striving hard to finalise an FTA with GCC states since 2005 to increase its trade volume with the bloc from $60 billion to around $350 billion by 2020. The country has so far signed FTAs with China, Sri Lanka, Malaysia and the South Asia Association of Region Countries.
Dar cherished close friendly relations with the UAE and said the Emirates’ fast progress on the economic front is a manifestation of its prudent leadership. He termed the talks with the UAE leadership “fruitful” and said it would help promote bilateral trade and investment between the two countries. “We have very positive meetings with the UAE leadership in Abu Dhabi,” the finance minister said.
During his eight-day stay in Dubai, Dar held meetings with His Highness Shaikh Muhammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; Shaikh Hamdan bin Rashid Al Maktoum, UAE Minister of Finance and Industry and Deputy Ruler of Dubai; Dr Anwar Mohammed Gargash, UAE Minister of State for Foreign Affairs; and Shaikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Culture, Youth and Community Development, among others, and discussed matters of mutual interests.
The UAE has become Pakistan’s largest trading partner, with annual bilateral trade reaching $10 billion. It is also the second-largest investor in Pakistan with $21 billion investments in banking, real estate, energy, infrastructure, telecommunications, ports, housing and aviation. During the meetings, Dar raised the issue of etisalat’s $800 million payment held due to non-transfer of properties in the name of PTCL and said the issue is expected to be resolved soon.
“We request the intervention of the UAE government and confident of receiving a ‘substantial amount’ of outstanding dues soon,” he said. He said out of 131 disputed properties about 52 have already been transferred while another 56 have been cleared for handing over to PTCL. “Only 23 properties are involved in litigation and we are unable to transfer until these are cleared from the courts,” he said. The finance minister also proposed the UAE to consider relaxation in terms of payment of crude oil purchase by Pakistan from Adnoc.
“We seek oil purchase on deferred payments due to rising crude import bill amounting to $16 billion,” he said, adding that it is part of commercial deals with friendly nations including the Saudi Arabia and Pakistan will absorb the cost of extended period for deferred payments. During his meeting with Shaikh Nahyan, the finance minister said Pakistan can provide skilled manpower for the growing UAE economy. He also expressed the hope that telecom companies from the Middle East would participate in the forthcoming spectrum licence auction for introducing 3G services in Pakistan.

Pakistan to boost trade with Muslim states: Dar

 

[salman77]

China to help Pakistan in all sectors: Shahbaz

ISLAMABAD, Feb 23 (APP): Punjab Chief Minister Shahbaz Sharif on Sunday said that China will help Pakistan in all sectors including energy and road networks. Talking to Pakistan Television, he said that China will invest billions of dollars in energy sector to put Pakistan on path of speedy progress. He said that Quaid-i-Azam Solar Park will produce 100 mega watt (MW) energy. He said that roads, fly overs and other infrastructure in this area are being completed for the benefit of the people. Shahbaz Sharif said that the project will start generating energy by the end of this year.
He said that China will help Pakistan in the construction of Multan Motorway section.
Chief Minister said that China is fully trusted in the leadership of Pakistan, adding that huge investment in different sectors will improve economy besides bring prosperity for the people of this region.
He said that Nandi Pur project will also start functioning in the next year. He said that garment city will be established in Lahore which will help promote business activity in the area.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - China to help Pakistan in all sectors: Shahbaz

 

[salman77]

Lucky Cement records Rs 5.16bn profits for half year

KARACHI: Lucky Cement Limited leads the cement industry with a rise in its half yearly net profit for the year 2013-14. It has recorded a net profit for the half year ending December 31, 2013, of Rs 5.161 billion which is 20.3% higher than the corresponding period last year.
The earnings per share (EPS) for the corresponding period increased to Rs 15.96 against an EPS of Rs 13.27 of corresponding period last year. The company’s gross profit increased by 10.7% during the half year as its net sales revenue improved by 11.8% to Rs 19.575 billion against Rs 17.511 billion of the corresponding period last year.
The local sales volume of Lucky Cement during the half year registered a growth of 4.3% that rose to 1. 9 million tons as compared to 1.8 million tons of same period last year, whereas export sales volume for Lucky Cement registered a growth of 19.10% to 1.2 million tons as compared to 1.0 million tons of the same period last year.
During the period under review, the combined sales revenue of Lucky Cement Limited increased by 11.8% which was contributed by 9.6% increase in volume and 2.2% increase in net retention.
Lucky Cement also reported progress on its ongoing projects including the commissioning of a Waste Heat Recovery (WHR) plant at its power generation units, the installation of new Vertical Grinding Mills at its Karachi plant aimed at improving quality, enhancing productivity and reducing energy costs, and a Tyre Derived Fuel (TDF) plant at its Pezu facility. It is noteworthy to mention that Lucky Cement’s joint venture investment in a cement grinding mill in Iraq has also been commissioned and started commercial production in February 2014. Lucky Cement also led the way in its social responsibility by granting numerous scholarships to students on merit during the half year under review, as well as providing support for the reconstruction of a girl’s high school in Pezu. Lucky Cement is one of the few companies in Pakistan to report its sustainability initiatives and was granted an A+ ranking by the GRI Institute of Netherlands for its Sustainability Report 2012.

Lucky Cement records Rs 5.16bn profits for half year

 

[salman77]

Surgical goods, medical instruments export up by 7.96pc in seven months

ISLAMABAD: Exports of surgical goods and medical instruments during first seven months of current financial year grew by 7.67 percent as compared to same period of last year.
During the period from July-January, 2013-14, surgical goods and medical instruments worth US$ 191.422 million exported as compared to US$ 177.785 million exports of corresponding period of last year.

According the data of Pakistan Bureau of Statistics, cutlery goods worth US$ 50.032 million exported which registered an increase of 2.56 percent as against US$ 177.785 million of same period last year.

During the period under review, chemicals and pharma products exports increased by 53.60 percent and country earned US$ 677.41 million as compared to US$ 441.014 million of same period last year.

However, exports of pharmaceutical products decreased by 0.92 percent and exports of plastic materials shrieked by 4.29 percent respectively during the period under review.

Meanwhile, fertilizers manufactured exports decreased by 100 percent and reached at zero level during the period under review, the data reveled.

The exports of onyx manufactured recorded growth of 34.09 percent as about 2,492 metric tons of the onyex valuing US$ 6.046 million exported as against 1,713 metric tons of the above mentioned product worth US$4.50 million during same period of last financial year.

According the data, the exports of other chemical increased by 192.90 percent and reached at US$ 347.67 million which stood at 127.92 million during the same period of last year.

http://www.brecorder.com/top-news/108-pakistan-top-news/159913-surgical-goods-medical-instruments-export-up-by-796pc-in-seven-months.html

 

[Devil Soul]

GDP grows 5pc in first quarter: SBP
APP
Updated 2014-02-28 13:24:06
ISLAMABAD: The country’s Gross Domestic Product (GDP) grew by five per cent during the first quarter of the current fiscal year as compared to only 2.9 per cent in the corresponding quarter of the previous fiscal year, according to the first quarterly report released by the State Bank of Pakistan (SBP).

The report says that since macroeconomic indicators were favourable at the start of the year, the increase in real GDP growth in FY14 was discernible.

The report suggests that in order to maintain the current growth momentum, and to take the economy to a higher growth trajectory, the government should speed up structural reforms in the fiscal and energy sectors.

“Estimates for growth exceeded expectations: the GDP grew by five per cent during the first quarter of the FY14, compared to only 2.9 per cent in corresponding period of the previous fiscal year,” the report says.

According to the report, a GDP growth of 4.4 per cent is the target for the full year 2014.

Moreover, industry and services were the major drivers of growth, while agriculture performed below target.

As the industrial sector revived, import pressures reappeared, especially for capital goods and raw materials.

The import of petroleum, machinery, and metal was particularly strong, which increased the trade deficit by $0.6 billion during first quarter of the FY14 over the corresponding period of last fiscal year.

Additional stress on the current account came from delayed inflows of coalition support fund (CSF) in FY14’s first quarter. As a result, the current account posted a deficit of $1.2bn in the first quarter of FY14, against a surplus of $0.4bn in the same period in FY13.

Although worker remittances posted an impressive 9.1 per cent growth, this was not enough to cover the foreign exchange gap in other heads.

The report said that repayments on external debt continued to exceed fresh disbursements while foreign investments remained shy.

This caused a strain on the country’s forex reserves, which posted a decline of $1.2bn during the quarter.

As a result, the local currency depreciated by six per cent against the US dollar during the first quarter of FY14, compared to only 0.3 per cent in the first quarter of the previous year.

The report pointed out that headline consumer price index (CPI) inflation increased to 8.1 per cent in the Q1 of FY14, compared to only 5.6 per cent in the preceding quarter.

In its monetary policy decision announced in September 2013, the central bank increased its policy rate by 9.5 per cent (or 50 bps). The step was aimed at curtailing the second-round effect of food inflation and the inflation expectations, as well as counter market sentiments following volatility in the rupee.

According to the report, government borrowing from the central bank was more pronounced, as commercial banks did not participate actively in auctions of the Treasury Bills held during the quarter.

As a result, the government could not meet the limit of zero quarterly borrowing from the SBP, though its borrowings were well below the limit agreed with the International Monetary Fund (IMF).

The fiscal deficit fell to 1.1 per cent of the GDP in the first quarter of FY14, from 1.2 per cent in the corresponding quarter last year.

This improvement occurred on both the revenue and expenditure sides, the report says adding on the revenue side, it was the increase in tax rates and not the base which is responsible for higher collection during the quarter.

Non-tax collections were also high due to certain one-off revenues, while on the expenditure side, a major positive was the reduction in interest payments, following the interest rate cuts in FY13.

The report said that public debt posted a record increase of Rs1 trillion during the quarter. This increase, however, does not represent the fiscal imbalances alone, which recorded only a modest increase.

Instead, this increase can primarily be traced to large revaluation losses associated with the external debt stock due to adverse exchange rate movements during the period.

According to the report, there is a corresponding need to rebalance the maturity profile of Pakistan’s domestic debt.

The growing prominence of three-month instruments in the outstanding volume of T-bills requires attention because this exposes the financial system to interest rate and roll-over risks.

The report also suggests that in order to maintain the current growth momentum, and to take the economy to a higher growth trajectory, the government should speed up structural reforms in the fiscal and energy sectors. By focusing on these sectors, the government has signalled that its priorities are correct.

Moreover, the report urges the government to manage long-standing issues in a sustainable manner, as these issues have restricted the growth to remain below potential.

 

[fatman17]

Pakistan likely to enter into export of bulletproof cars

• Staff Report
• March 13, 2014

KARACHI: Pakistan is likely to enter into lucrative export market of bulletproof cars as the company manufacturing bullet-proof cars has received export inquiries from Indonesia.Managing Director Toyota Central Motors (TCM) Salim Godil on the eve of 8th Toyota Dream Car Contest at TCM said his manufacturing plant in Karachi was already in full production and converting around 25 cars a month. He said, “If Pakistan enters into export arena of bullet-proofing it may prove to be the most lucrative export sector as bullet proofing cost is ranging from Rs 4 million to Rs 12.8 million depending upon the models and shapes of the vehicles”. He said majority of the customers were interested in bullet-proofing of their 4X4 vehicles which usually costs Rs 4 million while cars like Mercedes cost up to Rs 12.8 million. Pakistan has fully capable in converting vehicles into bulletproof as the best and number one bullet-proofing company in the world has given franchise to him.
TCM has also exhibited a locally bulletproof 4X4 vehicle on the occasion, which was also shown to the media. He said at present his manufacturing unit has limited production capacity and if the government formulates a policy to encourage this industry, export of bulletproof cars might fetch huge foreign exchange to the national exchequer.
He said production of locally assembled cars has dropped at a significant level as government has allowed import of secondhand cars. He demanded of the government to impose restrictions on import of secondhand vehicles in order to rescue local automobile industry. He said hybrid cars’ future in Pakistan was yet to be clear as only a limited number of such vehicles have been imported since the government announced to encourage these cars. He said unless and until hybrid cars get economical, they might not become popular in Pakistan.

 

[niaz]

It is clear that difference between the ‘Haves’ and ‘Have-nots’ is increasing. Some areas get all the development whereas other areas are totally neglected.

I may be becoming a Socialist in my old age but in my view no point in having motorways & metro buses & metro trains when more than 400 children have died of ‘HUNGER’ in the Tharparker area!

I would rather have 20 hour load shedding than even one person dying of hunger in my home country. No point in recriminations but the Central & Provincial governments must ensure that:

1. No one dies of hunger in Pakistan.

2. Clean drinking water is available to all the population.

Any other develop project should only be started after these objectives have been achieved.

 

[xxxKULxxx]

Guys i'm here to tell you something briefly & honestly as a brother of you from Türkiye...

You guys should focus on your economy for a while rather then your army... Your nukes provides this ease to you...

You shouldn't just purchase weapons... If you want to receive a weapon IMO you should do it in exchange for producing parts for that weapon... I think by this way you can gain weapons & technology & money... I don't know your relations with China but IMO you should work with us, you should make very good deals with us for your benefits... Your benefit is our & our benefit is your benefit...

And i think by this way you can reach a very good level and you will grow faster & in a healthy way...

If you reply my comment i will not be able to discuss the issue because i don't know enough about you...

But i know our brotherhood & our common history in a very good way...

& That's why i wanna see you in a very powerful in a very strong place

& That's why i wrote these...

 

[FunkyGen]

Pakistan economy outlook improved despite terrorism and energy problems - The Times of India
KARACHI: Despite problems of terrorism and energy crisis, the economic outlook of Pakistan improved last fiscal with inflation remaining in single digit and foreign remittances showing a rise, the State Bank of Pakistan said today. Pakistan follows a financial year beginning July 1-June 30. Unveiling its bi-monthly monetary policy for the new fiscal, the Bank kept the key interest rate unchanged at 10 per cent and forecast a CPIinflation rate of 7.5-8.5 per cent during the year.

Governor State bank, Ashraf Mehmood Wathra told a news conference that despite the problems of energy crisis and terrorism in the country the economic outlook had improved in the last fiscal year. This he said was due to improved foreign remittances, better tax returns and reduced government borrowing from the banks.

"But more tax reforms have to be undertaken to overcome the budget deficit and also improve the overall economic scenario," he said.


Wathra said the government borrowing from banks had decreased in the last fiscal year while private sector had availed loans of 329 billion rupees during the period. This was a positive indicator of development taking place in private sector.

He said that rate of inflation remained below 10 percent in the last fiscal year and was expected to remain unchanged in next two months.

He said the foreign remittances had increased in the last six months with forex reserves with the central bank at USD 9.6 billion.

PTI be like

 

[Men in Green]

Pakistan's Economy - News and Updates | Page 39

can some one merge this thread @Manticore

 

[fatman17]

Karachi
Cambridge system gaining popularity in Pakistan
our correspondentThursday, August 14, 2014


Karachi
The overall enrolment for Cambridge examinations in Pakistan rose seven percent this year, with 218,000 students appearing for O and A Levels across the country.
“We had 14,000 more students taking the exam this year, as last year the total figure was
204,000,” said Uzma Yousuf Zaka, the country director of the Cambridge International Examinations.
“There has been a similar increase worldwide as a 14 percent growth has been recorded in all CIE qualifications. The enrolment rate for A Levels is up by eight percent, while global O Level enrolment went up by 15 percent,” she said.
The most popular A Levels subjects in Pakistan were mathematics, physics, chemistry, economics and business studies, with 71,591 entries received for these five this year in comparison with the 69,432 last year.
For O Level students, the most popular subjects were English language, mathematics, second language Urdu, physics and chemistry, with more than 142,000 appearing in this session – an increase of more than 11,000 from last year’s 131,000.
“Congratulations to all students and their teachers over the hard work that went into their exam performance. At this time of the year, we all focus on results but schools know that good outcomes depend on a curriculum that inspires children to learn, motivates and challenges them and provides a good balance between knowledge and skills,” said Zaka.
“That is the programme the CIE offers and our rigorous examinations are aimed at providing a fair, internationally-recognised assessment of what each student has achieved.”

 

[Mugwop]

Raw cotton exports increase by 33 percent in fiscal year 2014

The country's raw cotton exports posted a notable growth of 33 per cent to $205 million during FY14 mainly due to bumper crop and low prices. Official statistics revealed that raw cotton export posted a substantial growth of 33 per cent during FY14 compared to the same period of last fiscal year. With the current increase, the country's total raw cotton export reached $205 million mark during the July-June of the FY14 as against $154 million in the same period of the FY13, depicting an increase of $51 million.
In term of quantity, raw cotton export is also higher than that of the previous year and with an increase of 24 per cent Pakistani traders exported some 760,000 bales during July-June of the FY14 compared to some 611,056 bales in the corresponding period of FY13.
"Although, the export of cotton has posted a declining trend in the last few months of FY14, however overall it has witnessed a massive surge during the last fiscal year," exporters said.
Bumper cotton crop in the last season (2013-2014), low cotton prices in the local market and higher demand in the world market have provided some opportunities to Pakistani exporters to earn more foreign exchange for the country by exporting raw cotton, they added. Ihsan ul Haq, a member of Pakistan Cotton Ginner Association (PCGA) and a leading trader, said that Pakistan can export much more commodity with proper planning.
"Pakistan is an agricultural base country and can produce over 20 million bales every year with timely and proper availability of water, certified seeds and pesticides. Talking on the higher raw cotton export, he said that there are several reasons of rising cotton exports and this attributed to a lower price trend in domestic market, bumper cotton crop of 13.3 million bales and export oriented opportunities.
Haq said that the federal government has set a cotton production target of 15 million bales for the year 2014-2015 and the country is likely to achieve. Meanwhile, Month on Month basis, the export of raw cotton has posted a decline of 81 per cent in June 2014 when compare with June 2013. Overall raw cotton amounting $1.38 million was exported in June 2014 compared to $7.205 million in June 2013. It may be mentioned here that during the last fiscal year 2012-2013, raw cotton export registered a decline of 67 per cent to $154 million down from $462 million in fiscal year 2011-2012.

 

[ejaz007]

Cost of Nandipur power project goes up by another Rs 27 billion

* Original cost of the project was estimated at Rs 22 billion, which now stands at Rs 84 billion owing to delay of seven long years in its completion
By Ahmad Ahmadani
September 17, 2014

ISLAMABAD: The cost of Nandipur Power Project has risen by Rs 27 billion, which has made the project unfeasible.
The production cost of the power project which has a capacity of only 450 megawatts has escalated by Rs 27 billion to Rs 84 billion. This unprecedented cost and small capacity of the project has shocked the power experts who claim that a mega project of over 800MW can be executed in this cost. The project would provide power at Rs 8.50 per unit, compared to Rs 4 per unit of the IPPs operationalised in 2007. A copy of official documents made available to Daily Times by top power gurus unearths the extremely dark and shady side of this project.
The official documents show that the engineering, procurement and construction (EPC) and related cost was $502.318 million, taxes and duties $21.773 million, emergency spare parts $15 million, O&M Mobilisation $5 million, non-EPC construction $56.750 million, financial fees and charges $16.838 million, interest during construction (IDC) $229.491 million. In this way the total cost stands at $847.016million. It has also been learnt that the Northern Power Generation Company (NPGC) has recently sought approval of National Electric Power Regulatory Authority (NEPRA) to fix the power tariff of the project for 30 years at Rs 18.16 per unit with furnace oil, Rs 27.91/unit with high speed diesel (HSD) and Rs 8.44/unit with gas.
When contacted, Nandipur Power Project Managing Director Muhammad Mehmood minced no words to categorically express his utmost surprise about increase in the cost under mysterious and suspicious circumstances, saying that he was unable to say how NEPRA had determined the cost of the Nandipur Power Project at Rs 84billion. According to the MD, cost of the project currently stands at Rs 57 billion. He said the reported cost of $847 million is equal to Rs 57 billion “only if you count value of one dollar equal to Rs 67,” he told Daily Times in response to a host of queries posed to him. Shocked at the mega escalation in the project’s cost, energy expert Arshad Abbasi said the project should be rejected outrightly as it would add more burden on national kitty.


Cost of Nandipur power project goes up by another Rs 27 billion

 

[fatman17]

Economy 2014
Dr Farrukh Saleem
Sunday, November 09, 2014

Capital suggestion

For the media, good news is not news. To be certain, every coin has two sides and every cloud has a silver lining. Yes, the economy is cloudy, murky and muddy but here’s the silver lining: One: Budget deficit, the root cause of at least a hundred other financial ills, is at 5.5 percent of GDP – more contained than an average budgetary deficit of 8 percent of GDP over the past three years. In rupee terms, that amounts to an improvement in excess of Rs500 billion in just one year.

Two: Construction activity is up 11.3 percent, LSM is up 4 percent and electricity supply is up marginally by 3.7 percent (LSM is large-scale manufacturing including fertilizer, chemicals and leather).

Three: Foreign exchange reserves are up by a hefty 40 percent from $9.5 billion in October 2013 to $13.2 billion in October 2014.

Four: Rural income, country-wide consumption expenditures, wholesale and retail trade volumes are all up. Rural income is up because of bumper harvests of wheat, sugarcane and rice. And consumption is up because of increased foreign remittances and higher rural income.

Five: After a gap of seven years, the minister of finance managed to sell $2 billion worth of Eurobonds (against an initial target of $500 million).

Six: Privatisation is underway after a break of seven years. Target: $4 billion.

Seven: On August 18, the IMF issued the following statement:“The IMF is encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving investment and growth. Economic indicators are generally improving, with growth continuing to momentum……”

Now the cloudy, murky and muddy part of the economy:

One: No reforms, neither expenditure nor taxation. No reforms, neither fiscal nor monetary. No regulatory reforms either. The economy is going nowhere without reforms – and there are no reforms on the agenda.

Two: The government has completely failed to decipher the energy sector puzzle. A 60 percent increase in electricity tariff is rendering the export sector globally uncompetitive (exports are down 7 percent).

Three: The trade deficit is widening as exports are declining and the import bill rising.

Four: Rising income inequality; rich getting richer, poor poorer. The economy is getting more and more cartelised and the cartels are becoming more and more powerful – the power cartel, the oil cartel, the sugar cartel, the cement cartel and the banking cartel.

Five: The Public Sector Development Program (PSDP) on the butcher’s block – down a scary 25 percent from a budgetary allocation of Rs1.1 trillion to an actual spending of Rs865 billion.

Six: No strategy or plan to remove structural constraints to investment and growth. Look at Pakistan’s global ranking on ‘ease of doing business’ slipping.

Seven; The PML-N in a fix; restless voters on the one side and a stringent IMF on the other.

PS: Most figures extracted from the Asian Development Bank’s database.

The writer is a columnist based in Islamabad. Email: farrukh15@hotmail.com

Twitter: @saleemfarrukh

 

[Abu Zolfiqar]

Economy 2014
Dr Farrukh Saleem
Sunday, November 09, 2014

Capital suggestion

For the media, good news is not news. To be certain, every coin has two sides and every cloud has a silver lining. Yes, the economy is cloudy, murky and muddy but here’s the silver lining: One: Budget deficit, the root cause of at least a hundred other financial ills, is at 5.5 percent of GDP – more contained than an average budgetary deficit of 8 percent of GDP over the past three years. In rupee terms, that amounts to an improvement in excess of Rs500 billion in just one year.

Two: Construction activity is up 11.3 percent, LSM is up 4 percent and electricity supply is up marginally by 3.7 percent (LSM is large-scale manufacturing including fertilizer, chemicals and leather).

Three: Foreign exchange reserves are up by a hefty 40 percent from $9.5 billion in October 2013 to $13.2 billion in October 2014.

Four: Rural income, country-wide consumption expenditures, wholesale and retail trade volumes are all up. Rural income is up because of bumper harvests of wheat, sugarcane and rice. And consumption is up because of increased foreign remittances and higher rural income.

Five: After a gap of seven years, the minister of finance managed to sell $2 billion worth of Eurobonds (against an initial target of $500 million).

Six: Privatisation is underway after a break of seven years. Target: $4 billion.

Seven: On August 18, the IMF issued the following statement:“The IMF is encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving investment and growth. Economic indicators are generally improving, with growth continuing to momentum……”

Now the cloudy, murky and muddy part of the economy:

One: No reforms, neither expenditure nor taxation. No reforms, neither fiscal nor monetary. No regulatory reforms either. The economy is going nowhere without reforms – and there are no reforms on the agenda.

Two: The government has completely failed to decipher the energy sector puzzle. A 60 percent increase in electricity tariff is rendering the export sector globally uncompetitive (exports are down 7 percent).

Three: The trade deficit is widening as exports are declining and the import bill rising.

Four: Rising income inequality; rich getting richer, poor poorer. The economy is getting more and more cartelised and the cartels are becoming more and more powerful – the power cartel, the oil cartel, the sugar cartel, the cement cartel and the banking cartel.

Five: The Public Sector Development Program (PSDP) on the butcher’s block – down a scary 25 percent from a budgetary allocation of Rs1.1 trillion to an actual spending of Rs865 billion.

Six: No strategy or plan to remove structural constraints to investment and growth. Look at Pakistan’s global ranking on ‘ease of doing business’ slipping.

Seven; The PML-N in a fix; restless voters on the one side and a stringent IMF on the other.

PS: Most figures extracted from the Asian Development Bank’s database.

The writer is a columnist based in Islamabad. Email: farrukh15@hotmail.com

Twitter: @saleemfarrukh

sooner Pakistan removes itself from the debt trap and slavery of the IMF, better off it will be