King Solomon
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There’s quite a bit to feel good about with respect to the recent news regarding the Pakistani economy. Here is a quick summary:
1) When the floods hit, there was widespread reporting that the budget deficit would hit 7% and in fact, some commentators from across the border even speculated that it would reach 8%. In the Finance Minister’s budget speech, it was confirmed that the budget deficit actually reached only 5.1% for the year, a far cry from 7 or 8%. This is perhaps just one more indication that on the subject of Pakistan, whatever negativity you see in the press, you should generously discount. This economy was able to weather the WoT, the global financial crisis and the floods quite well in 2010.
2) The Federal Board of Revenue (FBR) has confirmed that tax revenue collections for the year have already exceeded last year’s collections and are trending up. Much has been said about the low level of tax collection in Pakistan and this news is certainly very welcome. This year a major initiative has been launched to further enhance tax collection. It is not unreasonable to expect that within 3-5 years the tax collection issue can be addressed to quite some degree.
3) Remittances continue to be a tremendously important, and fast growing, source of foreign exchange for Pakistan. These are funds being sent to Pakistan by the 7+ million overseas Pakistanis and represent the confidence of our expatriate community in the country’s future. For the 11 months of the financial year, these remittances have already crossed $10 Billion and since we’ve had multiple consecutive months each accounting for more than $1 BN in remittance receipts, it is not unreasonable to expect the year to close at or above $11BN. Not only is this almost 30% up from the previous year, it is also an all-time record.
4) While the NASDAQ and Dow have given up all their gains for the year, the KSE (Karachi Stock Exchange) is doing quite well. In fact, it closed yesterday (6/13/2011) at 12,353 which is within about 300 pts of its 52-wk high of 12,768.
There’s quite a bit of other positive news with respect to development projects and the increases in provincial development spending, but we’ll save those updates for another post. For now, the economy seems headed in a good direction.
http://www.techlahore.com/2011/06/13/four-pieces-of-good-news-for-the-pakistani-economy/
1) When the floods hit, there was widespread reporting that the budget deficit would hit 7% and in fact, some commentators from across the border even speculated that it would reach 8%. In the Finance Minister’s budget speech, it was confirmed that the budget deficit actually reached only 5.1% for the year, a far cry from 7 or 8%. This is perhaps just one more indication that on the subject of Pakistan, whatever negativity you see in the press, you should generously discount. This economy was able to weather the WoT, the global financial crisis and the floods quite well in 2010.
2) The Federal Board of Revenue (FBR) has confirmed that tax revenue collections for the year have already exceeded last year’s collections and are trending up. Much has been said about the low level of tax collection in Pakistan and this news is certainly very welcome. This year a major initiative has been launched to further enhance tax collection. It is not unreasonable to expect that within 3-5 years the tax collection issue can be addressed to quite some degree.
3) Remittances continue to be a tremendously important, and fast growing, source of foreign exchange for Pakistan. These are funds being sent to Pakistan by the 7+ million overseas Pakistanis and represent the confidence of our expatriate community in the country’s future. For the 11 months of the financial year, these remittances have already crossed $10 Billion and since we’ve had multiple consecutive months each accounting for more than $1 BN in remittance receipts, it is not unreasonable to expect the year to close at or above $11BN. Not only is this almost 30% up from the previous year, it is also an all-time record.
4) While the NASDAQ and Dow have given up all their gains for the year, the KSE (Karachi Stock Exchange) is doing quite well. In fact, it closed yesterday (6/13/2011) at 12,353 which is within about 300 pts of its 52-wk high of 12,768.
There’s quite a bit of other positive news with respect to development projects and the increases in provincial development spending, but we’ll save those updates for another post. For now, the economy seems headed in a good direction.
http://www.techlahore.com/2011/06/13/four-pieces-of-good-news-for-the-pakistani-economy/
