There is a global attitude towards business competition after the formation of World Trade Organization but still some countries protect certain local industries in order to safeguard local population and enhance regulatory protection of consumers. Pakistan’s automotive car industry is amongst such industries, protected from outright direct competition in some ways by the policies of the government. This sector has seen growth for quite some time with exponential growth …
Read More »Micro small and medium enterprises: an engine of growth, prosperity
Entrepreneurs occupy a central position in a market economy as it is the entrepreneurs who act as the spark plug in the economy’s engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct. A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their …
Read More »The consumer is a king — A review into Pakistan’s booming retail sector
With the positivity instilled with the current government, most segments of the economy are showing positive signs of growth. When talking to businessmen on market potential, most say that the sector which is the best choice for investments is the retail sector. Pakistan has population of 180 million people, and frankly, the only entertainment is food and shopping. The demand of both food and shopping is counter to the …
Read More »Overview of Pakistan federal budget 2015-16
The latest federal budget for the fiscal year 2015-2016 has been recently revealed out of which the outlay is 91 per cent higher than what was revised earlier in the fiscal year. The Finance Minister, Mr. Ishaq Dar presenting the budget 2015-16 to the National Assembly claimed that the budget does include measures with respect to employment, improving the exports of the country as well as focusing on helping …
Read More »Interest rate drops to historic low at 7 percent
Monetary policy review reduces policy rate by 100bps A dramatic cut of 100bps in policy rate for the banking industry bringing the interest discount rate from 8 percent to 7 percent indicates the firm resolve of the government to give a jump start to the economy and also an effort to become the first in financial history by reducing the rate to a historic low in Pakistan. The trade …
Read More »Qatar economy – strong savings base to neutralize oil slump effect
A Gulf Times news article opens with the following lines; ‘Sharp decline in global energy prices appear to have taken a heavy toll on Qatar, whose trade surplus shrank considerably in January this year as exports plummeted amid rising imports, according to official figures. The trade surplus of energy-major Qatar, which is fast powering its non-hydrocarbon segments as part of diversification, plummeted 48.3% year-on-year to QR18.54bn on substantially lower …
Read More »Impact of low markup rate on Pakistan’s economy
Since the last monetary decision was made in November of 2014, key macroeconomic indicators have shown improvement. CPI inflation and its expectations have continued to follow a downward trajectory and in the months of November and December 2014, the trade deficit has also declined, however, it did increase in the first half of the fiscal year 2015 in comparison to the same period of FY 2014. Additionally, inflows of …
Read More »Pakistan economic outlook
It is often said that Pakistan suffers from ‘confidence deficit’ as the public at large doesn’t have confidence in the policies or statement released about state of the economy of the country. A lot of content pertaining to economic performance released by the Government of Pakistan (GoP) is not taken very seriously. However, the experts prefer to read opinions of the World Bank, International Monetary Fund (IMF) and Asian …
Read More »Impact of reduced oil prices on economy of Pakistan
Pakistan is a country which imports oil and with a decrease in the prices of oil internationally, the import bill is likely to be affected in a positive manner. During the fiscal year 2014, out of an import bill of US$41.7 billion, 35.3% or US$14.8 billion was used for oil and related products. Thus with a decrease in the prices of crude oil, the impact is likely to be …
Read More »Punjab the hub of economy
Punjab is the most populous province of Pakistan that houses 65% of total population of the country. It is the second largest province in terms of area after Balochistan. The province is bordered by Azad Kashmir to the north-east, the Indian states of Punjab and Rajasthan to the east, Sindh to the south, the province of Balochistan to the southwest, the province of Khyber Pakhtunkhwa to the west, and …
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