The debt-laden economy of Pakistan needs foreign inflows in order to address its economic woes. The global economic landscape seems better today vis-à-vis a year ago when the entire world was afflicted by the conundrums of the pandemic. Pakistan’s economic indicators at this juncture augur well down the road. There is no denying that Pakistan has been encountering the ordeal of balance of payment now and again. To address this …
Read More »Pakistan is presently going through process of rapid economic development, which includes privatization of major government corporations, aimed at attracting foreign investment and lessening budget deficit. In 2014, foreign currency reserves crossed $15 billion mark, which has led to steady lookout on the long-term rating. External debt in Pakistan remained unchanged at $64,338 million in the fourth quarter of 2014. External debt in Pakistan averaged $49,246.37 million from 2002 …
Read More »Every Pakistani owes over Rs 101,338 in debt Govt should raise capacity to monitor and manage public debt The debt market is a market for trading the debt instruments like TFCs, Bonds, T-Bills, Commercial Papers, Participation Term Certificate, Corporate and Federal Bonds etc. A debt market establishes a structured environment where these types of debt can be traded with comfort between interested parties. The debt market is also known …
Read More »Capitalism thrives on perpetual increase in consumption. It doesn’t much encourage savings on the one hand and advocates debt-based investment on the other. Leveraged investment generates comparatively rapid but high-cost and unsustainable growth. Investment funded by savings results in low-cost, sustainable growth. This is what the Austrian economists say while commenting on the destruction wrought by the Chicago economists during the last three decades. While global conscience, in the …
Read More »The economics of public debt is intriguing as well as fascinating! In interest-based capitalistic system, one cannot underestimate the value of debt. The system is designed such that economic progress and growth are made subject to ever-increasing prices of goods and services. The phenomenon of increasing prices is sustained by a corresponding increase in money stock through additional printing of currency. The additionally printed currency, going into an economy’s …
Read More »Public debt mounts to Rs 18.9 trillion Effective debt management is necessary for developing a feasible and stable debt portfolio. It mitigates the risks of refinancing, exchange rate fluctuations and debt accumulation that could impede economic growth and stability. Prudent utilization of debt leads to high economic growth and assists the government to accomplish its social and developmental goals. DEBT POSITION IN PAKISTAN (Rs. in billion) Year Public debt Domestic …
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