Economic analysts are clearly divided into two distinct groups, one that believes small and medium enterprises (SMEs) are the real driver of economy and another that believes that conglomerates are the real creators of value. Some management gurus believe it is only the perception but both are so minutely intermingled that one just can’t survive without other. They also believe that better these enterprises understand needs of each other …

  The successive governments in Pakistan have been focusing on industrial sector and ignoring agriculture. The focus remained on import substitution rather than exploiting comparative advantage. This is evident from the fact that crop yields in Pakistan are lowest, even below those achieved in India. Both the countries enjoy similar land and climatic conditions but India has been focusing more on improving yield and has been successful to a large …

  The current financial year (2012-13) is likely to close on a pessimistic note with: 1) looming balance of payments crisis, high budget deficit, exports proving dismal for financing imports but above all country continue to suffer from ‘trust deficit’. The conditions are marred by general elections for the time being because the caretaker government has no mandate to take some crucial decisions, including finalizing terms and conditions for the …

  Pakistan is not likely to achieve more than 3 percent GDP growth during the current financial year. Economic growth of next financial year is also be marred because of formation of the new elected government and coming up with appropriate policies to turn around the economy. The issue of potential default has been overcome with the commitment of the IMF to provide US$5 billion under Extended Financial facility (EFF). …

  There is no doubt that Pakistan suffers from cost pushed inflation. Any hike in the global prices of crude oil, crude-based raw materials and edible oil push inflation. The impact becomes even more pinching when Pak Rupee faces erosion in value against other major currencies. At present Rupee value is on the decline due to erosion of Pakistan’s foreign exchange reserves. Though, the central bank has been intervening regularly …

Achieving new milestones at a faster pace By and large Pakistan has one of the most robust commercial banking systems of the world. It is mainly due to a very vigilant regulator, prudent players and excellent clients. One can point out a few bad incidents, regulatory lapses and failure in compliance but all these were there because the ruling junta tried to facilitate the favorite ones, else sponsors of none …

  While geopolitics plays an important role in the prices of energy products, super powers are also keen in controlling the logistics. It is on record that Iran has been facing sanctions for more than three decades and the only purpose is not to allow its oil to reach international markets. However, lately, China, India, Japan and Korea have emerged as main buyers of Iranian oil. Taking Iranian oil to …

  Over the years there has been a mushroom growth of business schools in Pakistan. A number of universities have established Business Administration Departments. Since this growth has taken place in a rather short span of time, availability of faculty became very difficult. Business schools are now competing directly with trade and industry in hiring the faculty. Now business schools offer attractive salaries, particularly to the visiting faculty members. However, …

  Two of the common complaints are: 1) Pakistan’s GDP size is too small and 2) GDP growth also does not compare well keeping in view population growth rate. Over the years experts have been working on different options but little has been done to document the economy. According to some experts the size of documented economy is just one-fourth of the actual. On one hand this does not allow …