Public Security chief launches digital vehicle plate wallet service    'Action is in our nature': 4th Saudi Green Initiative Forum to be held at COP16    Pop hit APT too distracting for South Korea's exam-stressed students    Saudi Arabia's inflation rate hits 1.9% in October, the highest in 14 months    Mohammed Al-Habib Real Estate Co. sets Guinness World Record with largest continuous concrete pour    PIF completes largest-ever accelerated bookbuild offering in MENA region    Saudi Arabia signs renewable energy program with Azerbaijan, Kazakhstan and Uzbekistan at COP29    Australia and Saudi Arabia settle for goalless draw in AFC Asian Qualifiers    Human Rights Watch accuses Israel of mass displacement in Gaza amounting to war crime    Thousands of protesters march in Paris ahead of tense football match between France and Israel    Republicans win 218 US House seats, giving Donald Trump control of government    UN sounds alarm at Israel's 'severe violations' at key buffer zone with Syria    Order vs. Morality: Lessons from New York's 1977 Blackout    Saudi, Indian foreign ministers co-chair Cooperation Committee meeting in New Delhi    South Korean actor Song Jae Lim found dead at 39    Don't sit on the toilet for more than 10 minutes, doctors warn    'Marvels of Saudi Orchestra' to dazzle audience in Tokyo on Nov. 22    Saudi Champion Saeed Al-Mouri scores notable feat in Radical World Championship in Abu Dhabi with support from Bin-Shihon Group    Rita Ora is tearful in tribute to Liam Payne at MTV Awards    France to deploy 4,000 police officers for UEFA Nations League match against Israel    Al Nassr edges past Al Riyadh with Mane's goal to move up to third    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Bad news, again
Published in The Saudi Gazette on 04 - 06 - 2011

As expected, Pakistan's key economic indicators remain depressing. According to the Economic Survey of Pakistan 2010-11, the country's real Gross Domestic Product growth is estimated at a slim 2.4 percent against the targeted 4.5 percent. Inflation remains in double digits, hovering at around 14.1 percent in the first 10 months of the current fiscal year, compared to 11.5 percent during the same period a year ago. Moreover, the fiscal deficit has been estimated at 5.9 percent for the year, while public debt has shown a sharp increase of 13.1 percent in the first nine months of the current fiscal year, writes The News in its editorial. Excerpts:
One can continue citing figures, which overwhelmingly paint a grim picture of Pakistan's economy. But were we expecting any different? In a country shaken to its core by terrorism, continued political instability, inconsistent policies, and an unprecedented energy crisis, the economy often remains the first causality. Last year's devastating floods only added to the country's woes. According to government estimates, floods wiped out a staggering two percent from economic growth. The surging oil and food prices also proved mighty blows on the fragile economy, already reeling from internal challenges. All these factors contributed towards making life miserable for the common man. The unemployment rate grew by 5.6 percent, while instances of poverty increased.
However, the blame for dismal economic figures cannot be placed on these internal and external factors alone. The impact of these challenges compounded because the government proved slow to act and kept dragging its feet on crucial reforms - this includes its failure to expand the tax base to that of restructuring public sector enterprises, which alone need an injection of more than 250 billion rupees in subsidies just to remain afloat. The government's debt management strategy, fiscal austerity, and rationalizing the subsidy regime also left a lot to be desired. The only saving grace for this outgoing fiscal year remains the robust external sector thanks to a record surge in remittances by overseas Pakistanis and high exports, which are expected to cross $24 billion by the end of the year. Sadly, no credit can be given for this to the government. Let's hope that in the 2011-12 fiscal year, the finance minister and his team manage to take those tough and difficult decisions, which are vital to pull the country out of its low growth and high inflation cycle. For this, mobilizing internal resources, scrapping subsidies, and taking measures against vested interests remain vital. Whether this team will be able to do so remains a multi


Clic here to read the story from its source.