IMRAN.PSP

While I was at QAU huts for breakfast last week, I noticed this painting on a bare mud wall, drawn by a Baloch Student of QAU. Simply awesome. There is lot of talent but unfortunately we are wasting it with guns and bullets.

Since Independence Pakistan has faced myriad of Economic Problems which ranged from having no source of revenue, no industry to corruption, economic mismanagment and Incompetent Civlilian, millitary and political regimes. Here will review the major happenings in the history of Pakistan which are related to Economics. Pakistan share was not given after independence by India thus Pakistan problems started from the very bengining.  Devaluation in 1950, although Pakistan refused to devalue currency in 1949 along with India and UK. This resulted India suspending trade with Pakistan calling its currency as overvalued. Pakistan industrial growth has not been impressive. Protection has caused ineffiencies in industrial structure of pakistan. Agricultural issues are lack of modren technology, seed and lack of land reforms beside other. What is needed? Privatization Deregulation Liberalization Devolution Fiscal Decentralization Widening Tax Base Financial Services Provid

While going through the current turmoil of governance and law and order, Pakistan economic problems are yet to see an end. The new government successfuly negotiated an IMF deal but it too came at a cost, yesterday there was an increase of around 5% on Month to Month basis, which on yearly basis is more than 60% of increase) in oil prices. However the real price hike bomb was this time dropped in the form of increase in Electricity Tarrif which went up from 40% to 80% depeding upon the consumption of an household. Being the main inputs of virtaully every produced goods and as well as services, this increase will have its repercussion to come in the coming days. Inflation specially the food prices are going to go up which coupled with the losing value of PKR are going to contribute to the poor masses of the pure land. SBP governor recently told senate committee that capital flight amounting to 25 million USD is taking place in Pakistan on daily basis which is putting the already fragi