Pakistan economy maintains momentum despite external headwinds

[RajaRawal111]

(Web Desk) State Bank of Pakistan has released its First Quarterly Report for FY18 on the State of Pakistan’s Economy today. According to the Report, preliminary data on key macroeconomic indicators suggest that growth momentum remained strong in the first quarter of current fiscal year. Several coincident indicators point to a further strengthening of aggregate supply and demand in the economy.

According to the report, with the exception of cotton, other major kharif crops achieved or surpassed the FY18 targets. This improvement is supported by sufficient water availability, healthy fertilizer off take and an encouraging increase in agricultural credit disbursements. The large-scale manufacturing also experienced a 10 percent high growth during Q1-FY18 — the highest quarterly growth since FY09. The performance was encouraging as all sectors, barring fertilizer, contributed positively. This broad-based growth can be attributed to: (i) better energy availability, (ii) improved security situation, and (iii) rising consumer demand on the back of higher purchasing power and access to affordable credit facilities. The healthy performance of commodity producing sectors had a positive impact on the services sector as well.

The Report highlighted that timely policy support, favorable cyclical movements, low and stable inflation along with growing confidence triggered an uptick in the private sector credit. In particular, the fixed investment loans expanded for
the twelfth consecutive quarter in Q1-FY18.

The Report also observed the noteworthy rebound in FBR revenues on the back of increased economic activity. New infrastructure projects, surge in imports, higher consumption of consumer durables, and increased prices and consumption of POL products significantly contributed to both direct and indirect taxes. Notwithstanding this performance, the Report emphasized on the need for more concerted efforts aimed at expanding the tax base.

It also highlighted that the recent significant gains in export growth and foreign direct investment are welcome developments. However, these gains were not enough to contain the overall balance of payments deficit. On the back of an expanding economy, import payments far exceeded the aforementioned positives and the external sector remained under pressure. The widening of current account deficit along with an increase in economic activity is a recurring phenomenon for Pakistan, and one that has the tendency of disrupting growth cycles. There is, hence, an urgent need to find innovative policy mixes, avenues for raising foreign exchange earnings, and realigning policies favoring export growth.

In brief, the first quarter developments show that Pakistan’s economy is well poised to continue on its growth momentum for FY18. However, in order to maintain this virtuous equilibrium of high growth and low inflation in the medium- and long-term, the Report underlines the need to address long-standing structural reforms in the fiscal and external sectors.

http://dunyanews.tv/en/Business/424...ng-growth-momentum-despite-external-headwinds

 

[RajaRawal111]

ماتمی برگیڈ -- اپنے فور سٹار جنرل اکمل کی کمانڈ میں تیار


یلغار ہوووووو

 

[SahirShah]

یارا، نواز شریف تو کہتا ہے جب سے اُسے نکالا ہے پاکستان کی معیشت تباہ ہو گئی ہے ملک میں افرا تفری پھیل گئی ہے، آپجناب فرماتے ہیں کہ ایسا کچھ نہیں ہے
(omg)(omg)اے کی چکر است ؟ ​

 

[Chillpill]

ماتمی برگیڈ -- اپنے فور سٹار جنرل اکمل کی کمانڈ میں تیار


یلغار ہوووووو

ماتمی بریگیڈ لاہور میں عظیم الشان ماتم کے بعد قومے کی حالت میں ہے

:lol::lol::lol::lol::lol::lol::lol::lol::lol:

 

[Two Stooges]

مگر چاؤلہ صاحب، شیخ مجیب تو کہہ رہا ہے، کہ
. . .میرے جانے کے بعد چراغوں میں روشنی نہ رہی

 

[Saqi99]

Dollar ka rate kider puncha?

 

[Educationist]

سیدھا سا سوال ہے
اگر معاشیت اتنی ترقی کر رہی ہے تو پاکستان میں مہنگائی کیوں ہے ؟ ۔​

 

[Educationist]

سیدھا سا سوال ہے

اگر معاشیت اتنی ترقی کر رہی ہے تو پاکستان میں غربت کیوں ہے ؟ ۔​

 

[RajaRawal111]

کچھ فالتو بول رہا ہے --- ہاں چراغوں میں روشنی کم ضرور ہوئی ہے - اس سے زیادہ چمکدار ہوتے

مگر چاؤلہ صاحب، شیخ مجیب تو کہہ رہا ہے، کہ
. . .میرے جانے کے بعد چراغوں میں روشنی نہ رہی

 

[RajaRawal111]

غربت تو امریکہ میں بھی ہے - اصل چیز ہوتی ہے کہ ملک کا متوسط طبقہ کی کیا حالت ہے
یہ لو سیدھا جواب
https://defence.pk/pdf/threads/credit-suisse-pakistans-wealth-inequality-is-the-lowest-in-south-asia.531024/
پر اس کو سمجھنے کے لئے پڑھا لکھا ہونا اور بغض سے خالی ہونا ضروری ہے

سیدھا سا سوال ہے

اگر معاشیت اتنی ترقی کر رہی ہے تو پاکستان میں غربت کیوں ہے ؟ ۔​

 

[Educationist]

غربت تو امریکہ میں بھی ہے - اصل چیز ہوتی ہے کہ ملک کا متوسط طبقہ کی کیا حالت ہے
یہ لو سیدھا جواب
https://defence.pk/pdf/threads/credit-suisse-pakistans-wealth-inequality-is-the-lowest-in-south-asia.531024/
پر اس کو سمجھنے کے لئے پڑھا لکھا ہونا اور بغض سے خالی ہونا ضروری ہے

غربت کے مارے لوگ ڈاکے مارتے ہیں تو کیا میں ڈاکے مارنے لگ جاؤں ؟ اگر امریکہ میں لوگ غریب ہیں تو اس میں پاکستان کا کیا لینا دینا ؟ میں نے سیدھا سا سوال پوچھا ہے اس کا جواب بھی سیدھا ہونا چاہیئے- اگر پاکستان میں معائشی استحکام ہے تو پاکستان میں غربت کیوں ہے ؟ مجھے امریکہ، انگلینڈ کی مثال نہیں چاہیئے- پاکستانی ہوں اور پاکستانیت کی بات کر رہا ہوں​

 

[akmal1]

غربت تو امریکہ میں بھی ہے - اصل چیز ہوتی ہے کہ ملک کا متوسط طبقہ کی کیا حالت ہے
یہ لو سیدھا جواب
https://defence.pk/pdf/threads/credit-suisse-pakistans-wealth-inequality-is-the-lowest-in-south-asia.531024/
پر اس کو سمجھنے کے لئے پڑھا لکھا ہونا اور بغض سے خالی ہونا ضروری ہے

غربت کیلئے امریکا اور دولت کی تقسیم کیلئے جنوبی ایشیا

 

[Educationist]

غربت تو امریکہ میں بھی ہے - اصل چیز ہوتی ہے کہ ملک کا متوسط طبقہ کی کیا حالت ہے
یہ لو سیدھا جواب
https://defence.pk/pdf/threads/credit-suisse-pakistans-wealth-inequality-is-the-lowest-in-south-asia.531024/
پر اس کو سمجھنے کے لئے پڑھا لکھا ہونا اور بغض سے خالی ہونا ضروری ہے

تم نے حوالہ دیا کہ دولت کی غیرمنصفانہ تقسیم پاکستان میں غربت کا باعث بن رہی ہے- اب تم خود ہی بتا دو کہ یہ دولت اصل میں کن خاندانوں میں بٹی ہوئی ہے ؟ اگر ممکن ہو سکے تو ان خاندان کا نام بھی بتا دینا​

 

[Educationist]

غربت کیلئے امریکا اور دولت کی تقسیم کیلئے جنوبی ایشیا

قبلہ یہی بات میں نے بھی اسے کہی کہ جہاں کی بات ہو رہی ہے وہاں کا ہی ذکر کرو- لوگوں میں شعور لگتا ختم ہو گیا ہے- امریکہ کو میں جوتے پر لکھتا ہوں- میں کوئی نونی بھڑوا نہیں کہ امریکہ کہے تو نواز چور شریف کی طرح بھونکوں، امریکہ کہے تو نواز چور شریف کی طرح کاٹوں
اور ایک اور مزے کی بات، سوال میں نے پاکستان کا کیا مگر اس نے بات امریکہ کی کی اور حوالہ پھر پاکستان کا دیا​

 

[akmal1]

قبلہ یہی بات میں نے بھی اسے کہی کہ جہاں کی بات ہو رہی ہے وہاں کا ہی ذکر کرو- لوگوں میں شعور لگتا ختم ہو گیا ہے- امریکہ کو میں جوتے پر لکھتا ہوں- میں کوئی نونی بھڑوا نہیں کہ امریکہ کہے تو نواز چور شریف کی طرح بھونکوں، امریکہ کہے تو نواز چور شریف کی طرح کاٹوں
اور ایک اور مزے کی بات، سوال میں نے پاکستان کا کیا مگر اس نے بات امریکہ کی کی اور حوالہ پھر پاکستان کا دیا​

راجہ صاحب کا کاروبار ہی یہی ہے جھوٹ بولو اور الٹی سیدھی مثالیں دو. کوئی بندہ سوال پوچھ لے تو طعنے
جس دن سے انہوں نے جاپان کے قرضوں کا حوالہ دے کر پاکستان کے قرضوں کو جائز قرار دیا تھا اسی دن سے انکی دماغی صلاحیت کا پتا لگ گیا تھا

 

[RajaRawal111]

میں نے کہا تھا کہ اس کو سمجھنے کے لئے ایجوکیٹڈ ہونا ضروری ہے -- ایجوکشنسٹ ہونا نہیں
رپورٹ الٹ بتا رہی ہے حضور

تم نے حوالہ دیا کہ دولت کی غیرمنصفانہ تقسیم پاکستان میں غربت کا باعث بن رہی ہے- اب تم خود ہی بتا دو کہ یہ دولت اصل میں کن خاندانوں میں بٹی ہوئی ہے ؟ اگر ممکن ہو سکے تو ان خاندان کا نام بھی بتا دینا​

 

[akmal1]

سرکاری رپورٹ تو آپ نے دیکھ ہی لی ہے
اب حقیقت بھی دیکھ لیجئے

Political and economic subjugation was at its zenith during the Musharraf era and even thereafter. During the rule of Pakistan People's Party (PPP), from 2008 to 2013, led by Asif Ali Zardari, appeals were made to the White House not to violate our territorial boundaries-it was a slap on the nation's face. It was not diplomacy but utter submission before those who were the main cause of crisis in our tribal areas and Swat at that time. Nawaz Sharif continued the same policy and even bowed before forces of obscurantism, used by these imperialist forces for the containment of China by destabilizing Pakistan.

Our successive governments did nothing to come out of this economic subjugation. On the contrary, they kept pushing the country into over-indebtedness. No attention was paid to make the tribal areas part of settled areas and ease their economic woes. We are still faced with the threat of militancy and cross-border terrorism, yet there is discord amongst political parties about how to uproot terrorism. Many religious parties openly support terrorist networks and have yet not been banned. We now have horrifying debt burden, worsening balance of payment position, rising inflationary expectations, undesirable increase in wasteful expenditure that includes heavy cost of perks and perquisites of elites, growing unemployment, social unrest, widening trade and fiscal deficits, rising cost of doing business, burden of new taxes, increases in utility bills, economic stagnation and failure of revenue authorities to tap actual revenue potential of around Rs 8 trillion-just to mention a few.

In the wake of currency devaluation, people's purchasing power is diminishing, banks have less liquidity, lending rates are going high and activities at stock markets are sluggish. Investors are shy and afraid, mainly due to political instability and economic uncertainty. Life for the common man on the streets is becoming difficult leading to social restlessness. Although we claim to be an agricultural economy, a vast majority of people does not have enough to eat. It is tragic that we even import agricultural products and have miserably failed to develop any worthwhile agro-based industry in the last 70 years. What a decline from the times when this region (ie United Punjab before partition) had the undisputed position of being the granary of the entire Subcontinent.

Look at the mess our successive governments, military and civilian alike, created on the debt front. The figure of foreign debt will be touching monstrous $80 billion after devaluation of our rupee in the last few months. Domestic debt is now close to Rs 20 trillion. Both external and internal debts are increasing at a frightening pace. The way we are managing our resources (not exploiting them or wasting mercilessly those already available) is criminal and is leading us to self-annihilation. Officially fiscal deficit of around Rs 1.8 trillion is expected during the current fiscal year. According to independent observers, it will above Rs 2 trillion. This testifies to failure of political masters who rely on an incompetent and corrupt bureaucracy for economic management. The policy of appeasement towards tax evaders, money launderers and plunderers of national wealth is showing its impact in all spheres: political culture of changing loyalties is loathsome, nation is in high despair and all sectors of economy are showing negative indicators. Even the modest target of 5.5% GDP growth is difficult to be achieved. In this bleak scenario, our political leaders have no definitive plans and are still engaged in mudslinging rather than evolving a national agenda to overcome the prevailing economic mess.

The most worrisome sector of economy is agriculture. The rural population is constantly being pushed below the poverty line making all the targets of growth unachievable. If we have to develop economically, agriculture will have to play a critical role in the fight against poverty. Vital areas like mechanization, irrigation, plant protection and improved seeds have not been given proper attention although on papers there are many departments (including agricultural universities) spending millions and millions on claiming to have achieved wonders. In reality even the issue of loans to small farmers is nothing but just another scandalous affair where only a handful are making huge money in the name of poor farmers.

The industries are already over-taxed but instead of getting any relief, these are being asked to pay exorbitant taxes and also act as withholding agents for the State. All the fiscal laws now impose a number of obligations on them to file periodic reconciliation statements of taxes withheld and deposited in the Government Treasury. This work is to be done without any reimbursement of cost for the withholding agents. On top of it, a draconian sword hangs for any default not committed willfully. There is no political will to tax the mighty sections of society and the entire tax burden is being shifted on the poor through indirect taxes either in the form of sales tax, federal excise duty or presumptive taxes under the so-called direct taxes.

The most disturbing and painful reality is unabated and shameless indulgence of rulers and bureaucrats in wasteful expenditures. Look at their life-style when the vast majority of people is starving. The grim truth of Pakistan is the loathsome habit on the part of the rulers and their lackeys to indulge in self-deception, self-praise and self-perpetuation during times of crises without realizing how disastrous these acts can be. All the governments, including the present one, pretend that serious economic problems can easily be disguised by statistical sleight of hand. This might be understandable from a political point of view aimed at cheating the voters, but this denial of truth is certainly a disastrous and suicidal act. We cannot come out of subjugation unless we first become an economically self-reliant nation. For this, the rulers will have to take the first step by starting to live at a modest level and then mobilize the masses for the common struggle to take the great leap forward.

(The writers, lawyers and partners in Huzaima, Ikram & Ijaz, are member Adjunct Faculty of Lahore University of Management Sciences)

 

[akmal1]

یہ لائنز خاص طور پہ راجہ صاحب جیسوں کیلئے ہیں

The grim truth of Pakistan is the loathsome habit on the part of the rulers and their lackeys to indulge in self-deception, self-praise and self-perpetuation during times of crises without realizing how disastrous these acts can be. All the governments, including the present one, pretend that serious economic problems can easily be disguised by statistical sleight of hand. This might be understandable from a political point of view aimed at cheating the voters, but this denial of truth is certainly a disastrous and suicidal act.

 

[akmal1]

راجہ صاحب کے حکومتی اعدادو شمار کی حقیقت

ISLAMABAD: The Federal Board of Revenue (FBR) has found that some of its field offices were reporting duplicated revenue collection figures to the Board’s headquarters and such duplication of figures had jumped up to Rs12-13 billion, The News has learnt reliably.
The Chairman FBR Tariq Pasha has brought up this issue in Chief Commissioners’ Conference held in the FBR’s Headquarters on last weekend that had infuriated the tax collection machinery high-ups for ‘creating embarrassing situation’ for the whole department.
“The duplication in revenue collection has gone up to Rs12-13 billion and now message has been conveyed loud and clear that stern actions will be taken against those field formation allegedly involved in such practices to show improved performance,” official sources confirmed to The News here on Thursday.
When contacted to FBR’s spokesman and Member Inland Revenue (IR) Policy Dr Mohammad Irshad told The News that it was matter of internal adjustments but the FBR had never reported duplicated figures outside with any other ministry or department.
However, the sources said that the FBR was holding internal inquiry to determine facts and held accountable those who made glaring mistake and reported duplicated figures to its headquarter. “Now we have conveyed to the field formations for report revenue collection figures only after reconciliation with the State Bank of Pakistan and National Bank of Pakistan,” said the official sources and added that stern actions would be taken against those who were found involved in reporting incorrect figures to the Board.
The duplication in revenue collection figures were used to be done by the field offices mostly by end of the fiscal year. Now this practice has become norm and the field formations had started doing the same during the course of end of quarter or month basis so it came on the surface that had perturbed the high-ups of the tax collection machinery.
The issue of duplication in revenue collection became obvious by end of December in the current fiscal year when the FBR found that its dashboard and the SBP possessed different figures of revenue collection that had widened in the range of Rs 6 to Rs13 billion.
It triggered panic within the tax machinery and the high-ups decided to convene Commissioners Conference in Islamabad on last Saturday and Sunday here at Islamabad. It was deliberate move of the high-ups Haroon Akhtar Khan who has been now elevated with status of Federal Minister for Revenues, did not attend the Commissioners’ Conference because the Chairman FBR Tariq Pasha was assigned to deliver strong worded message to field formation officers for improving their performance as well as to do away with the practice of reporting duplicated revenue collection figures to the Board.
This same thing had happened in the last fiscal year when the field formations continuously reported inflated revenue collection figures when the high-ups were pinning hopes of higher collection but all hopes dashed to the ground because book adjustments resulted into slashing down the revenue collection to Rs3362 billion which were Rs70 to 80 billion less than the hopes of the previous FBR administration. “Now the field formations especially larger LTUs and RTOs have been instructed strictly to report only reconciled figures with the SBP and NBP otherwise they will have to face consequences,” the sources concluded.

 

[akmal1]

مزید حقیقت ملاحظہ کیجئے

Have you ever applied for an electricity connection for your business in Karachi? If you have, then you know that it takes at least 9-10 months to get it. After submitting an application, one has to wait for 30 days for on-site inspection, 21 days to receive cost estimates, 14 days to obtain wiring inspection, 30 days to get delivery order of materials and 120 days for external works and meter installation. Even more interestingly, this is based on the assumption that a citizen has complete information on what is required and is able to complete procedures without delays. Practically it takes substantially longer and perhaps greasing a few palms.

Contrary to perception that private management of K-Electric is better than public-sector agencies, it is doing much worse. Similar processes with Lesco take about six months. Unfortunately, getting an electricity connection is not the only bottleneck for businesses as their day-to-day operations are rife with such examples. For instance, it takes 18 months or more for a business to obtain a sales tax refund and over three years to settle a dispute in a court.
Recently, Miftah Ismail, adviser to the prime minister on finance, highlighted that the government is taking all possible measures to reduce the cost of doing business. Let’s hope he is right and doing it fast enough to stop the slide in the country’s ranking on the World Bank’s Doing Business survey. This year Pakistan dropped from 144 to 147, within 190 countries.
Doing business indicators are quite useful in identifying areas that need attention from policymakers who are trying to make it easier to do business in their countries. In an earlier article, I highlighted the weaknesses in provincial processes that adversely affect these rankings. However, most of these indicators fall under the purview of the federal government and the provinces have no control over them.
Pakistan received extremely adverse scores on getting electricity, trading across borders and paying taxes — all federal subjects — where the country was ranked 167[SUP]th[/SUP], 171[SUP]st[/SUP] and 172[SUP]nd[/SUP], respectively. Other countries that have similar rankings in these indicators include Afghanistan and some African countries. Is this how we are positioning ourselves in the global marketplace?
The indicator on ‘getting electricity’ not only covers procedural days but also measures associated costs, reliability of supply, transparency of tariffs, price of electricity, etc. India has an astoundingly high global rank of 29 on getting electricity, where it takes merely 47 days to get a connection. Interestingly, average electricity price for industrial consumers is 20.3 cents per KWh in India and 18.8 cents in Pakistan. Reducing electricity prices, as announced by the finance adviser, will therefore have little bearing on our ranking, unless it is accompanied by other interventions to reduce procedural delays of several months.
Similarly, a business has to pay taxes and mandatory contributions on 11 counts, including corporate income tax, sales tax, employer pension and social security contributions, etc. What is even more troublesome is that these have to be paid in 47 instances every year, putting excessive compliance burden. In China, a business only has to make three payments a year.
Similarly, many countries have simplified their clearance, customs inspections and port handling procedures so much that the whole process takes about an hour. We, on the other hand, still take 5-6 days for exports and 11-12 days for imports.
Doing business indicators provide a good starting point for policy reforms. Nevertheless, the government must realise that it is only beginning to scratch the surface. More serious issues like adverse security, corruption, limited access to credit, poor infrastructure and non-availability of skilled labour also need to be tackled if we are serious about creating enough jobs for almost two million youth entering the workforce every year.