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Op-Ed

Op-Ed section will have latest editorial and analysis…

Steel mills affairs

Pakistan Steel Mills, the largest industrial complex of the country, has not been functioning for the last seven months due to suspension of gas supply. The Mills owesover Rs 39 billion to the Sui Southern Gas Company in terms of outstanding bills, out of which Rs 19.1 billion was the principal amount and Rs 20.8 billion wasthe late payment surcharge. ... Read More »

Journey towards emerging market

  According to newspaper reports, Pakistan is likely to receive foreign portfolio investment of $500 million if the MSCI, which is All-Country World Index, reclassifies it as an emerging market in its upcoming annual review in May. Experts believe that Pakistan would attract a significantsize of foreign investment after MSCI upgrades its status from frontier market to emerging market. Foreign ... Read More »

Peace and economy

  Peace, security and liberal economic policies are a key to create investment-friendly climate in the country. Malaysia was reeling under utter poverty until early 80s, but is now ranking 6th in Asia and 20th in the world and its development rate is higher than the countries like Australia, France and South Korea. Prime Minister Nawaz Sharif is also keen ... Read More »

Passage of Tax Amnesty Bill

The National Assembly has passed a bill to amend the Income Tax Ordinance, 2001, giving a new opportunity to traders and others who matter to whiten their black money up to Rs 50 million by paying 1 percent tax. The statement of objects and reasons of the bill point out the factual situation of the undocumented economy and a large ... Read More »

Fate of Iran-Pakistan gas pipeline

After lifting of economic sanctions, Iran is likely to emerge as the new economic power in the region having free access to the European banking system and the oil market. The country has also hit the jackpot as it is going to receive a huge amount of $100 billion in foreign reserves which were frozen by the United States in ... Read More »

Stepping up tax collection efforts

  The government is increasingly becoming panicky on tax collections and is making desperate efforts to enhance tax net.  As it is struggling to implement new tax regime, it is simultaneously bagging applause from financial experts and criticism from potential taxpayers. The issue of withholding tax on bank transactions is still awaiting resolution, but the matters of sales tax also ... Read More »

State of economy

  In its report on the country’s economy, the State Bank has pointed out notable improvements in the key macroeconomic indicators during the first quarter of the current financial year. However, it also called for requisite steps to ensure sustainability of gains. The report says that economic activity seems to be gearing up as improvements are visible from the changes ... Read More »

Launching of Asian Infrastructure Investment Bank

  According to newspaper reports, the Asian Infrastructure Investment Bank has been formally launched in Beijing with $100billion capital for the development of infrastructure within the member countries. The establishment of the bank is a major leap toward fairer global economic governance as the Chinese president put it on the occasion of its formal inauguration. The bank is seen as ... Read More »

Revenue loss in mismanagement

A study paper of the International Monetary Fund reveals startling facts about the level of mismanagement in Pakistan which cost the nation Rs 3.3 trillion a year. The amount is higher than the annual tax collections and vindicates the government of its tax amnesty scheme. The current tax-to-GDP ratio in the country is 11.5 percent against tax capacity of 22.3 ... Read More »

LNG import

According to newspaper reports, the Economic Coordination Committee of the Cabinet has authorised the state-owned oil company to sign a deal with the Qatar government to import Liquefied Natural Gas to the country after the later agreed to cut its sale price to 13.39 percent of Brent. The deal will cost Pakistan $15 billion, spanning over 15 years from 2016 ... Read More »

Falling textile exports

According to the Pakistan Bureau of Statistics, merchandise exports of the country have declined to $10.322 billion during the first six months of the current fiscal year from $12.058 billion during the same period last year. Percentagewise, the decline is recorded at 14.40 percent. The bureau finds a decline of 16.80 percent alone in December 2015 as compared to the ... Read More »

Sales tax on service sector

The Punjab government has decided to impose sales tax on 11 unregulated small businesses and service providers as the province is gradually heading towards corporate economy. The government had initially decided to impose up to 16 percent sales tax on the service sector which the stakeholders had been resisting for the last one and a half years. Now the rate ... Read More »

Whitening the black money

Financial managers, economists and legal experts in Pakistan are facing a serious question: does the amnesty scheme introduced by the government to whiten black money by paying one percent tax is legal or illegal and that this step by the holders of black money should be regarded as tax compliance or tax evasion. Whenever the government in the office introduces ... Read More »

Development of infrastructure

Pakistan is receiving$1.5 billion loan from the Asian Development Bank under the Public Private Partnership mode to upgrade infrastructure during 2016. The total co-financing of the bank stands at $1.050 billion including $400 million grant commitments from DIFD. The bank has also provided $95 million as trade finance support for the private sector investments. Infrastructure is the basic requirement for ... Read More »

Exports within SAARC countries

According to a World Bank report titled Global Economic Prospects, the official trade volume within the SAARC countries is less than 2 percent of their gross domestic product as export flows of the South Asian nations are highly concentrated with the European Union and United States. At least the one third of the world population lives in South Asia and ... Read More »

Taxpayers deserve respect

When it comes to public life, it is difficult to differentiate between a businessman who honestly believes in paying all his tax liabilities and the other who enjoys all facilities of life in this country but does not pay any tax. There is no specific protocol for the honest taxpayers and they are often looked with suspicions as if they ... Read More »

Problems of tractor industry

The farming sector is in trouble so are the industries associated with it. Cotton yield has reached the lowest ebb during the current fiscal year and the country has to turn towards India to import cotton and run textile industry. The tractor industry is also in trouble due to crisis in the farming sector. According to newspaper reports, contribution of ... Read More »

Privatization of state entities

Governments are least involved in business activities in developed countries and private sector is allowed to manages businesses from food manufacturing to transportation and all other fields of the economy. The governments act as facilitators and only give playground to investors, entrepreneurs and traders to launch their enterprises. On the contrary, Pakistan has variety of business corporations under supervision and ... Read More »

Potentials of halal meat export

At least 25 percent of the world’s population is Muslim and they have specific food code if it comes to the consumption of meat. The global market of halal meat is over $2 billion and it has the potential to rise further in coming years. The demand for halal meat is increasing not only in Middle East, but also in ... Read More »

Economy in global perspective

It is a common rhetoric in the official circles that Pakistan is on the verge of economic take off, but piling up debts, electricity shortage and law and order situation in various parts of the country come as a big hurdle in exploiting the huge potentials the country offers in the fields of trade and investment. The country has also ... Read More »