Tag Archives: Policy

  There seems to be positive sentiment in the economy with the new government taking charge in May 2013. There are high hopes that the economy will flourish, law and order situation will improve, inflation will subside and development projects will create more jobs. The sentiment is reflected in business growth and the KSE-100 index trading at record high of 22,700 points and going strong. Despite the government approaching the …

  The next Monetary Policy is to be announced by the State Bank of Pakistan on September 13, 2013 which is likely to decide the future course of policy rate in the days to come, keeping in view the rate of inflation as the tightening or softening of the monetary policy is usually linked with the ups and down of the inflation rate. If this theory is taken into consideration …

  While announcing its monetary policy for next two months, the State Bank of Pakistan (SBP) decided last month to keep the benchmark interest rate unchanged at 10 percent. The analysts see no rationale to maintain the discount rate at 10 percent by the central bank as all fundamentals are in favor of a reduction in the interest rate. So far as inflation is concerned, the average Consumer Price Index …

  In the last Monetary Policy decision, discount rate has been maintained at 10 percent against expectations that interest rate will reduce at the back of reduction in CPI, average CPI recorded at 8.6 percent in FY14. With declining trend of inflation and projections of SBP for single digit inflation, discount rate is expected to reduce further. For FY15, CPI is expected to remain between 7.5 percent and 8.5 percent. …

  It is often said that the fiscal and monetary policies of the country have been dictated by the multilateral lenders i.e. International Monetary Fund (IMF) and the World Bank. This statement is partly correct and partly wrong. Since the lenders give money they also want to ensure its return as per agreed schedule. Therefore, they have a major say in the formation of these two critically important policies. However, …

  Many of the policy planners have the consensus is that the time has come for public-private partnership. It is on record that many of the state owned enterprises (SoEs) have been working very efficiently. It is also known that in some of the businesses, private sector is rather shy to invest because of: 1) huge capital outlay, 2) long gestation period, 3) lower return during the early years and …