Economy

A Mixture of Successes and Failures Quotes Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. Ronald Reagan Economy is the basis of society. When the economy is stable, society develops. The ideal economy combines the spiritual …

Studies across the world show that political instability in a country is negatively related with its economic performance: it scares away capital, slows growth, pushes unemployment and increases poverty. Pakistan is facing the twin challenges of economic slowdown and militancy. The issues which create a political instability in the country take the government’s focus away from the real issues that …

Pakistan is willing to sell its silver. Why? The probable reason is that these public sector institutions have been very inefficient and are bleeding the economy. There are many reasons for this debacle. For instance, mega projects are not only ill-conceived but are also more egoistic than what we have at the moment, and the future of these new mega …

The world economy experienced a severe downturn following the emergence of global financial crisis that started with the burst of housing bubble in the United States in 2007. This bubble was formed due to the monetary policy which enabled the people to borrow at very low cost and it eventually led to excessive lending. Massive increases in subprime mortgages backed …

For the media, good news is not news. To be certain, every coin has two sides and every cloud has a silver lining. Yes, the economy is cloudy, murky and muddy but here’s the silver lining: One: Budget deficit, the root cause of at least a hundred other financial ills, is at 5.5 per cent of GDP ‘more contained than …

The EU is Pakistan’s largest exchange associate and has been dynamic in reinvigorating the equitable course of action and fortifying the social and financial fabric of this country through its growth and help approaches. Pakistan is facing a downturn in economy and it seems unlikely — at least in near future — that it would be able to come out …

Pakistan has reached this point of carrying unsustainable and unmanageable external debt due to massive corruption levels, inefficient allocation of debt money, poor implementation of foreign-aided projects and financing of the current account. Consequently, the economy as a whole has become all the more dependent on large scale foreign long, and short-term borrowings. In 2010, Pakistan was declared the third …

Although reform initiatives were taken by successive governments seriously, many of these could not be implemented properly because of political imperatives and a lack of commitment by the leadership. Economic reforms in Pakistan were designed to address structural weaknesses of the economy and imbalances under the structural adjustment programmes implemented within the framework of the International Monetary Fund and the …

Corporate farming is a fairly broad term that deals with the general practices and effects of a small number of large, global corporations that dominate the food industry. It simply encompasses all activities from production to retail consumption. Corporate Agriculture Farming (CAF) is a fairly broad term that deals with the general practices and effects of a small number of …

The revenue raised by printing money is called seigniorage. Whenever government relies on seigniorage for financing its expenditure, the money supply goes up. Consequently, a rise in inflation is also witnessed. Raising revenue by printing more money is just like imposing an inflation tax. It is a tax in the sense that, for the holders of money, inflation decreases the …