Stories from Fahd Rehman
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State of Economy: Unemployment, low productivity and absence of trust
Macroeconomic indicators may have improved, but problems continue to persist
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Structural problems: Promoting ‘real’ investment to ease constraints
Govt needs to focus on development spending, resolving current account deficit
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Lack of value addition keeps knitwear industry subdued
Insertion into global chain will help Pakistani producers
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Subdued demand hurting tractor industry
Reasons for contracting sales include falling prices of agricultural products
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Restricted: Need to mobilise provincial resources
Lack of fiscal flexibility means economy staying stagnant
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The case of currency fluctuation
Selective capital control required to curb speculative pressure
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In the long run: Strategy needs to shift from borrowing to taxing
Govt’s reliance on banks should decrease, private sector must be developed
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Structural change: Why devaluating rupee will not correct anything
Faulty composition of exports and inappropriate supply need to be catered to
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Despite low interest rates, demand for credit remains down
Industrial sector suffering from several issues, causing them to be cautious.
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A developing, but increasingly expensive service industry
Pakistan is seeing high inflation in the sector that is fast becoming dominant