tag:blogger.com,1999:blog-5848640164815342479.post8454886280783616194..comments2024-03-27T15:36:44.737-07:00Comments on Haq's Musings: Pakistan Gets Higher Credit RatingsRiaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5848640164815342479.post-45166469948413314462010-03-05T19:21:24.769-08:002010-03-05T19:21:24.769-08:00Here's an IMF official talking to Business Rec...Here's an IMF official talking to <a href="http://www.brecorder.com/index.php?id=1024531&currPageNo=1&query=&search=&term=&supDate=" rel="nofollow">Business Recorder</a> about Pakistan's economy growing 5-8% in future years:<br /><br /><i>ISLAMABAD (February 25 2010): The biggest challenge Pakistan facing now is to improve growth rate to over 5 percent on sustained basis by overcoming structural challenges, says an IMF official. "There is no reason Pakistan can not grow over five percent on sustained basis by increasing exports and investments; all opportunities are there", said Masood Ahmed, IMF Director of Middle Eastern and Central Asian Division, in an exclusive interview with Business Recorder.<br /><br />"To do so, Pakistan has to address impediments of increasing investment and to provide infrastructure, educated and skilled human capital, improve business environment, and level of governance", he said. "But in three to five years Pakistan, strongly growing on the structural reforms path, can also catch a growth rate of 8 percent, equal to its Asian rivals. That is also an average growth rate of Asia next year," he added.<br /><br />Masood called for national consensus among all political parties on structural reforms so that in future these reforms should stay on course, and growth pattern should not be that much disturbed, and the government should show more political will in implementing these reforms. "Pakistan needs tough political decision to take on reforming its commercial entities, cutting its losses", Masood said.<br /><br />Good macroeconomic practices to ensure strong pubic finances and competitive exchange rate to bolster high growth are also essential, he added. Pakistan grew 2 percent last year; has estimated to grow at 3 percent this year; and the Fund forecast to get to 4 percent next year. Unlike previous years' growth, based on consumption, future growth should be based on exports and investments.<br /><br />In a scenario of growing global growth at 4 percent from negative 1 percent last year, exports demand would grow and competitive price advantage would support local exporters, making up for modest growth this year. "But, this is not enough, and Pakistan can achieve 8 percent of growth in coming years if structural reforms are really undertaken," the IMF Director said.<br /><br />Pakistan government can save up to 8.5 percent of GDP to deploy from increasing tax revenue, and reduce losses of public sector inefficient enterprises. "Resources that are currently wasted in the loss, making public enterprises and taxes that are collecting taxes that are not collected, making public spending more efficient are estimated by Finance Ministry is over 8 percent of GDP which are almost $12 billion", says Masood, quoting Finance Ministry reports.<br /><br />These resources could be deployed to finance the much-needed infrastructure, reliable electricity provision, better health and education for millions of Pakistanis, he added. Among other challenges, international oil prices can augment again next year posing balance of payments problems and inflation which had once come down to 9 percent. He said the government should also be reducing fiscal deficit, which is around 5 percent this year, that would crowed out private sector borrowing from banking sector.<br /><br />"Inflation, once reduced to around 9 percent, is now again increasing, and rebounding at 13 percent, which is very harmful for the poor segment of the society. This is the biggest help for the poor class; this also helps increase investment, that ultimately helps reducing poverty," Masood said. He said help from donors, like Tokyo pledges, are slow, and IMF urges the donors to come up and support Pakistan, he added.<br /></i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-80343378370890406412009-09-18T15:36:48.447-07:002009-09-18T15:36:48.447-07:00Mudassar,
Unfortunately, I have to agree with your...Mudassar,<br />Unfortunately, I have to agree with your assessment of our current leadership. I wish that wasn't the case. But who is to blame for this?<br />Didn't Pakistanis vote for these kleptocrats?Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-91193496159720861552009-09-18T15:31:55.613-07:002009-09-18T15:31:55.613-07:00Yep you are right Mr. Riaz. What do you say about ...Yep you are right Mr. Riaz. What do you say about this??<br />http://www.vop.com.pk/?p=778Mudassar Jehangirhttps://www.blogger.com/profile/11313330433664173232noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-28150176049571072532009-09-16T13:29:09.952-07:002009-09-16T13:29:09.952-07:00Mudassar,
I think Shaukat Tareen's support com...Mudassar,<br />I think Shaukat Tareen's support comes from the international financial institutions and donor nations, not from the PPP bunch. <br /><br />But the ruling feudals know they have no credibility with the world on their own, and they need Tareen to continue to get the aid they need.<br /><br />If they p--- him off and he leaves, they are going to be in deep trouble.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-77017375866667424962009-09-16T11:08:44.002-07:002009-09-16T11:08:44.002-07:00I don't think Shaukat Tareen is all independen...I don't think Shaukat Tareen is all independent for taking his decisions, he was about to resign at the time Rental Power Project's decision. He is still talking against those projects and terming them immature projects.Mudassar Jehangirhttps://www.blogger.com/profile/11313330433664173232noreply@blogger.com