Pakistan’s economy not shrinking

[AZADPAKISTAN2009]

https://arynews.tv/en/pakistans-economy-shrinking-govt/

ISLAMABAD: The Finance Division on Friday described as “incorrect” the impression created by a section of the media that Pakistan’s economy is shrinking.

In a statement, the Finance Division asserted that the macroeconomic adjustment policies introduced by the government to support balance of payment and strengthen market confidence will lead to higher and inclusive growth.

“The contention of a section of the media talking about shrinking economy seems incorrect as the early signs of recovery of economic activities in fiscal year 2020 are very much encouraging,” it said.

On agriculture front, the government is implementing “National Agriculture Emergency Programme” and has approved 8 mega projects at a cost of Rs235 billion.

This will encourage economic activities in rural areas and create employment opportunities in the country.

Credit to the agriculture sector has increased by 20.7 per cent, the sowing of cotton crop has also increased by 14.4 per cent as compared to last year which will increase cotton crop in double-digit.

The import of agriculture machinery has recorded a growth of 8.7 during FY2019 which is a good indicator. The base effect will also support growth in agriculture.

Earlier estimates of cotton crops suggest that cotton production will increase at least by 3 million bales in FY2020 from last year. All these developments forecast agriculture is likely to rebound and grow more than 3.0 percent in CFY.

For inclusive growth and to protect the vulnerable segments of society, various social protection programs (through a newly created poverty alleviation division) have been introduced.

Under Poverty Alleviation, the government has allocated an additional amount of Rs80 billion in the country’s social protection spending for 2019-20 which cumulatively reached Rs 190 billion which will also have a spillover effect on the private sector activities.

Tax collection during the first quarter of the current fiscal year has so far been 16 per cent higher than the tax collection of the same period last year.

 

[Hakikat ve Hikmet]

With two thirds of Pak economy undocumented it’s very difficult to understand it quantitatively!!! Every # is a guess work....

 

[blain2]

With two thirds of Pak economy undocumented it’s very difficult to understand it quantitatively!!! Every # is a guess work....

As bad as the undocumented economy is for the national kitty, it also keeps a lot of Pakistan afloat.

 

[war&peace]

As bad as the undocumented economy is for the national kitty, it also keeps a lot of Pakistan afloat.

That undocumented economy still helps a lot of poor people. Most of the sadiqa (charity) goes undocumented. my father used to tell us that women in Pakistan never reject a questioner (a.k.a beggar) who asks for food. This is the teaching of our Holy Prophet (peace be upon him).

 

[insight-out]

That undocumented economy still helps a lot of poor people. Most of the sadiqa (charity) goes undocumented. my father used to tell us that women in Pakistan never reject a questioner (a.k.a beggar) who asks for food. This is the teaching of our Holy Prophet (peace be upon him).

I found this pretty amazing. See from 43:43 to 45:20

I'd say very few communities, if any, display this level of charity.

 

[litman]

government has to claim that everything is alright while the facts are against it. if mullah diesel topples the government i am sure pti wont come in power again if fresh elections are held.

 

[war&peace]

I found this pretty amazing. See from 43:43 to 45:20

I'd say very few communities, if any, display this level of charity.

People of Karachi especially Memons are generally generous people.

 

[Enigma SIG]

https://www.bloomberg.com/news/arti...rom-zero-to-hero-evoking-egypt-s-success-tale

• Foreigners buy $342 million of local debt in July-September
• Returns on Pakistan bonds approach policy rate of 13.25%

Global investors are piling into Pakistan’s local-currency bonds like never before.

Attempts at economic reforms, support from the International Monetary Fund and interest rates topping 13% make the nation’s fixed income attractive amid a surge in the world’s pool of negative-yielding debt.

Small wonder foreigners bought $342 million of debt in the quarter through September, compared with virtually zero inflows in the past two years, according to central-bank data going back to 2015.

The new-found interest in Pakistani bonds reminds some fund managers of Egypt, which in 2016 agreed to a bailout package with the IMF. That deal proved to be a game changer as it sped up growth, cut inflation and lured foreigners -- a lesson for the South Asian that has seen its stock market erase 57% of its value since its entry into MSCI Inc.’s indexes in 2017.

“People are looking at Pakistan as they see a story similar to the one in Egypt, and people made good money there,” said Tim Ash, a strategist at BlueBay Asset Management in London. “The assumption is the currency adjusts, rates go higher and this creates good valuations on bonds to put money to work.”

Egyptian Connection
The comparison with the north African nation strengthened after Pakistan appointed Reza Baqir as the central-bank governor this year. Baqir served in senior positions at the IMF in past 18 years, including as the fund’s resident representative in Egypt at the time of the bailout.

Under Baqir, Pakistan is looking to stabilize its economy after suffering from a deficit blowout with the most aggressive rate hikes in Asia and multiple currency devaluations since November 2017. The rupee is down almost 50% against the dollar this year, one of the world’s worst-performing currencies, as the central bank introduced more flexibility to the managed-float system.

“The question is whether the rupee is now at the right level and are rates high enough to make up for forex risks,” said Ash. “Rates in Pakistan are lower than was the case in either Egypt or Ukraine when portfolio flows first began to come in. So, inflows in Pakistan will be more moderate.”

Continuation of economic reforms is key to the debt inflows extending, said Abdul Kadir Hussain, the head of fixed-income asset management at Dubai-based Arqaam Capital. As part of the IMF loan conditions, the government must raise revenue by more than 40% in the year that began in July. The nation must also lower electricity subsidies.

“The change in Pakistan is a reflection of the new finance minister and the central-bank governor, and the government’s general positive intent to engage with international investors,” said Andrew Brudenell, a U.K.-based fund manager at Ashmore Group Plc. “This bodes well, as long as the macro-economic picture can improve.”

government has to claim that everything is alright while the facts are against it. if mullah diesel topples the government i am sure pti wont come in power again if fresh elections are held.

see post above

 

[Dark-Destroyer]

government has to claim that everything is alright while the facts are against it. if mullah diesel topples the government i am sure pti wont come in power again if fresh elections are held.

Mulleh couldnt topple a glass of lassi let alone the government and dont worry pti will complete its 5 years and by then they will be voted in again.... pakistanis have no patience they want everything done in a year but tolerated mass corruption but now all talk 5hit even in the media

 

[litman]

Mulleh couldnt topple a glass of lassi let alone the government and dont worry pti will complete its 5 years and by then they will be voted in again.... pakistanis have no patience they want everything done in a year but tolerated mass corruption but now all talk 5hit even in the media

pti government wont last for 5 years. the way they are performing very soon we will see masses on the roads dying of hunger. pakistanis did get sick of the corrupt politicians thats why they voted for IK and his performance is even worse then the previous corrupt government. so we have only two options .less corrupt bunch of incompetent fools vs crooked highly corrupt thugs. there is no other option.

 

[Dark-Destroyer]

pti government wont last for 5 years. the way they are performing very soon we will see masses on the roads dying of hunger. pakistanis did get sick of the corrupt politicians thats why they voted for IK and his performance is even worse then the previous corrupt government. so we have only two options .less corrupt bunch of incompetent fools vs crooked highly corrupt thugs. there is no other option.

Lol the 2 options the true values of the state if people didnt want this then they shouldn't have let the others plunder the state and how do you think they will run the country exactly by using the same model of loans and more loans and whos gonna eventually pay them back? Dont pay tax and have the corrupt then wonder why we are where we are to be honest no nation will prosper like this might aswell mortage all the airports and motorways and pm house and whole of pakistan but we aint paying taxes they were better then these guys because these guys wanna actually fix things rome wasnt built in a day remember that