A.Rafay
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ISLAMABAD: Economists proposed the establishment of the Asian Monetary Fund (AMF) to avert balance of payment crises among regional countries.
In the session on macroeconomic determinants of economic growth during a three-day conference organised by the Pakistan Institute of Development Economics (PIDE), here on Tuesday, Mahmood Khalid, a young economist of PIDE, said that the government did not include the full part of its given guarantees for defining public debt. Analysing the Fiscal Responsibility and Debt Limitation Act 2005, he said that the act neither imposed restrictions on the budget deficit figure for the government nor barred the governments borrowing from the State Bank of Pakistan.
Alan Winters, Professor of Economics, University of Sussex, UK, delivered a lecture on living with China, in which he discussed the impact of the economic rise of China. He explained that the arrival of China as a fully-functioning trading nation had a dramatic effect on competition faced by other producers.
Moreover, focusing particularly on Mexico, Winters showed how Chinas increasing trade had influenced the small and inefficient Mexican producers by throwing them out of business and benefitted large and efficient producers by making them concentrate on major products alone, thereby increasing their efficiency. However, Mexican exporters have to follow prices set by China while selling in a third market such as the US, which squeezes their profit margin.
Winters said that Pakistani producers also faced Chinese competition. However, by reducing the prices of raw material and other inputs of production, China may actually be helping Pakistan in moving from smaller and less efficient, to larger and more efficient, firms.
He also discussed Chinas active role in the World Trade Organization and the effects of Chinese policies on the global economy. He said that while Chinas role in the World Trade Organization was appreciated, government intervention in exchange rate undervaluation by China was considered dangerous. He argued that the emergence of China as a trading economy could benefit or harm other countries, depending on how well they responded with their policies. It was stressed that every step should be taken to protect the global trade environment.
Dr Ashfaque H Khan, Dean NUST Business School (NBS), said that China would become the major economic power of the world by 2030 even if it achieved growth in the range of 6.5 percent till then. He proposed the creation of an Asian Monetary Fund as a first resort to avert balance of payment crises.
He further said that the IMF was the last resort for averting crises so regionally there should be some kind of institution to overcome crises.
Economists propose creation of Asian Monetary Fund - thenews.com.pk
In the session on macroeconomic determinants of economic growth during a three-day conference organised by the Pakistan Institute of Development Economics (PIDE), here on Tuesday, Mahmood Khalid, a young economist of PIDE, said that the government did not include the full part of its given guarantees for defining public debt. Analysing the Fiscal Responsibility and Debt Limitation Act 2005, he said that the act neither imposed restrictions on the budget deficit figure for the government nor barred the governments borrowing from the State Bank of Pakistan.
Alan Winters, Professor of Economics, University of Sussex, UK, delivered a lecture on living with China, in which he discussed the impact of the economic rise of China. He explained that the arrival of China as a fully-functioning trading nation had a dramatic effect on competition faced by other producers.
Moreover, focusing particularly on Mexico, Winters showed how Chinas increasing trade had influenced the small and inefficient Mexican producers by throwing them out of business and benefitted large and efficient producers by making them concentrate on major products alone, thereby increasing their efficiency. However, Mexican exporters have to follow prices set by China while selling in a third market such as the US, which squeezes their profit margin.
Winters said that Pakistani producers also faced Chinese competition. However, by reducing the prices of raw material and other inputs of production, China may actually be helping Pakistan in moving from smaller and less efficient, to larger and more efficient, firms.
He also discussed Chinas active role in the World Trade Organization and the effects of Chinese policies on the global economy. He said that while Chinas role in the World Trade Organization was appreciated, government intervention in exchange rate undervaluation by China was considered dangerous. He argued that the emergence of China as a trading economy could benefit or harm other countries, depending on how well they responded with their policies. It was stressed that every step should be taken to protect the global trade environment.
Dr Ashfaque H Khan, Dean NUST Business School (NBS), said that China would become the major economic power of the world by 2030 even if it achieved growth in the range of 6.5 percent till then. He proposed the creation of an Asian Monetary Fund as a first resort to avert balance of payment crises.
He further said that the IMF was the last resort for averting crises so regionally there should be some kind of institution to overcome crises.
Economists propose creation of Asian Monetary Fund - thenews.com.pk
