SBP conducts sterilisation operation by selling govt securities to mop up excess liquidity in banking system

High interest rates, import compression and regressive taxation leading to low growth, unemployment

In emerging situation, challenge for govt is to jump-start economy, create jobs

Public system stabilises wild swings in food prices, but leaving it to market will be politically costly

Stabilisation measures are taken to control excess demand mainly through high policy rate, austerity drive

Balancing formal sector growth, luxury consumption in a dualistic economy

Since poor have high propensity to consume, regressive taxes reduce their level of consumption

Mass-producing industrial sector gets squeezed in presence of bottlenecks in agriculture

If income of growers doesn't improve, consumer goods industry will either stagnate or contract

Capital flows increase volatility in financial markets that doesn't bode well for govt, business