Current benchmark interest rate at 7 percent is the lowest in 42 years in Pakistan. Last month, the central bank kept its policy rate unchanged at after lowering its rate by 100 bps to 7 percent as it was in May. The cut in interest rates would only benefit the economy if the initiative is to support the private sector, otherwise the government’s excessive borrowing from the banking system …

  Pakistan has achieved self-sufficiency in bike production and it can become a major bike exporter to at least developing countries for its low cost production. What is actually needed is the official patronage of local producers in terms of incentives and facilities in order to boost bike exports from Pakistan. In 2010, a record 1.8 million motorcycles were manufactured in the country. Its production is still on the rise. …

  Chaman, a border city near Pak-Afghan border is not the only junkyard for stolen vehicles in Balochistan, but there are reports for presence of many such junkyards in different areas of the province. Not only the stolen vehicles are dumped but their engine and chassis numbers are also tampered at these junkyards. These vehicles are then sold out. The inter-provincial gangs of car lifters have been allegedly involved in …

  Balochistan has immense potential in corporate sector, which needs to be tapped efficiently. Gwadar, a port city and now the winter capital of the province may be developed as a business corporate hub. The port is still non-functional. It still lacks road and rail connectivity and its usage has so far been restricted to bulk cargo such as wheat and urea. The province has been lacking a corporate culture …

  As the present government is much focused on privatization, Privatization Commission headed by Zubair Umar has short-listed 31 institutions to be privatized. According to chairman PC, the privatization process is absolutely on and financial advisers are performing their job, whether it is the Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM), National Power Construction Company (NPCC) or power distribution companies like Iesco and Fesco. Last year, the government completed …

  Islamic funds have actually provided a window to a number of individuals, who were previously reluctant to invest because of their religious beliefs. In adherence with principles of Shariah compliance these funds and their usage play key role in the global economy, covering the financial needs of the currently underserved Muslim population. Unfortunately, this Islamic financing are facing numerous challenges for its growth in the country and still at …

  Pakistan is rich in natural resources. Only the educated, skilled and healthy people can make the best use of the enormous natural resources of the country. The better human capital equipped with education in science and technology can be instrumental in increased productively with modern technology in all economic sectors. This will enhance industrial productivity and increase exportable output of the country. Education is the main tool to develop …

  China-Pakistan Economic Corridor (CPEC) has the potential to usher in a new era of economic progress and prosperity for both countries benefiting the whole region as well. The project is expected to be “a game changer” not only for Pakistan and China but also for the whole region. Last month, Pakistan and China signed 51 deals, mostly related to CPEC, which will link Pakistan’s Gwadar Port on the Arabian …

  Pakistan faces chronic power shortages due to rapid growth in demand for electricity. Power outages increased significantly due to the widening gap between supply and demand over the past three years. It has adversely affected the industrial output and economic growth of the country. The energy statistics of Pakistan shows that around 50 percent of the need is met by the indigenous gas production and 29 percent by domestic …

  Pakistan is rapidly evolving as one of the telecom sector’s key investment prospects. The telecom sector has witnessed a significant year-to-year growth in the country. About 90 percent of Pakistanis live within areas that have cell phone coverage and more than half of the total population has access to a cell phone. The country’s telecom infrastructure is improving dramatically with foreign and domestic investments into fixed-line and mobile networks; …