In the previous article, we had focused on the fiscal policy challenges and how it was driving the current economic crisis. In today’s article, we argue for finding evidence based solutions to tackle our financial challenges and devising a home grown roadmap for equitable prosperity.
The economic challenges facing Pakistan today are daunting and the roadmap for enhancing wealth and prosperity for the 230+ million citizens needs to be fostered. While the resumption of the IMF program is critical for addressing our immediate financial needs, their standard prescriptions may only address our short-term challenges.
On the 14th of March 2023, InfraZamin Pakistan hosted the country’s first-ever summit on infrastructure titled “Building for Impact” in Karachi, featuring international speakers and representatives from numerous public and private institutions. A key area of focus of the conference was to explore the most viable avenues of financing that are required for infrastructure projects in Pakistan.
The popular notion that ‘we’re confronted with a ‘trade deficit challenge’ is perhaps correct, but it’s the symptom; not the cause of our problem.
Current Account Deficit (CAD) is our Achilles heel, but it is driven primarily by “Fiscal Policy”, which basically fuels consumption led growth.
Khaleej Times interviewed Zafar Masud, President and CEO, at Bank of Punjab. A seasoned banker and entrepreneur with a focus on development finance, with 27 ye ...
Note: This is the second of two articles; Managing external financing gap, the unconventional way— How going digital can bridge the external financing gapThe di ...
Note: This is the second of two articles— Managing external financing gap, the unconventional wayHow going digital can bridge the external financing gapThe glob ...
There has been a considerable debate on currency management for a while. The pendulum of currency swung between defending currency to supposedly market based exchange rate in the recent times. The side-effects of both extremes are much clearer in hindsight and this may perhaps be a good time to look at their pros and cons objectively.
Unlike external account, fiscal management remains in the hands of the government. There’re two main components of fiscal account — taxation involving Federal Board of Revenue (FBR) and non-tax Public Sector Entities (PSEs). Both these components doesn’t require any external support and assistance, as such, and it could all be handled with the political-will and the right policy actions by the government. That’s where the theory of “Big Five” comes handy, whereby the idea is that “top five regulators” and “top five PSEs” shall be made independent and eventually reformed. This will help in addressing the fiscal deficit to a very large extent, and perhaps completely over a period of time.
Cyber-crime is a reality and exceeding with mushrooming fintech and increasing integration/ intra- operability. Various 2018 predictions about the merging of cyber and traditional financial crimes may actually prove too conservative, as in the recent past. Cyber attacks and cyber crimes will continue to grow
All other tools to manage external account are operational and temporary in nature; long-term, sustainable solutions will come with the structural changes or reforms only.
The impact of fiscal policy is always better than monetary policy in managing external account in
an environment like the one prevailing in Pakistan
