May 16, 2005	Monday	Rabi-us-Sani 7, 1426

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Return to ‘growthmanship’ PAKISTAN’S economic managers are running out of adjectives to define their euphoric vision of the future. In their unrestrained exuberance, they seem to be determined to convince the world that they have all but erased the signs of economic regression...		Time for open budgeting BY now there are no significant secrets in respect of the budget proposals for 2005-06, likely to be presented on June 10. If that be the D- day that would leave leave barely a fortnight for the National Assembly to debate the budget and development plans, which is far from adequate for the purpose, if the fiscal package is to be taken seriously....
Taxation and poverty CAN taxation accelerate poverty? The answer is yes, though the orchestrated claims about the purpose of taxation are diagonally opposite. The truth is that what taxation may ultimately lead to depends on the taxation structure, tax incentives that encourage economic expansion on stable bases and, finally,....		Reality check on industrial policy EVERY government, which came to power in this country since its birth has blessed this nation with a new industrial policy. And at times we have had a new industrial policy every year....
Emerging risks in rapid privatization INTERNATIONALLY privatization is highly controversial issue. Nobel Laureate Stiglitz and others deride it as “ briberization” and give examples of the havoc created by it in Russia under Yeltsin and in other East European countries. The Washington Consensus (identical economic stand point of IMF,...		Budget deficit, equity and tax-GDP ratio PAKISTAN’S overall fiscal deficit has been brought down from 5.4 per cent of GDP in 1999-00 to 3.3 per cent of GDP in 2003-04. It is considered to be an outcome of “prudent fiscal policy.”...
Business hopes and expectations NOT long ago, the announcement of the federal budget was an exercise that generated among business plenty of stomach-clenching, sweaty palms, moments of anxiety and uncertainty. It was a test of nerves for traders and industrialists who were unable to predict what the annual document would bring. Since deregulation and the shift to a market-based....		Focus on agriculture budgeting WHILE the Punjab government has ambitious social sector sights, it is aware that the strength of the province rests in its agriculture and livestock and is expected to subject the sectors to sharp and sympathetic focus in the coming budget....
Reaping a rich harvest from maize crop FODDER crops are important because regular supply of adequate and nutritious fodder is essential for the promotion and development of livestock. Currently, two types of livestock production practices are prevalent; rural...		Fiscal devolution vital for removing disparities THE next year’s budget needs to be formulated within the stated objective of enforcement of devolution from federation to provinces and provinces to local governments including fiscal devolution. The ‘Devolution Plan’ envisages decentralization of political, administrative and fiscal authority to sub-national governments....
Inflation and economic growth INFLATION is one of the determinants of macro-economic stability, the recent evidences suggest that long-term economic growth requires macroeconomic stability. Low inflation along with sustainable budget deficits, realistic exchange rates and appropriate real interest rates are the indicators...		Work, family and job THERE is an enormous change in the working hours since 1970’s. The expectations of outcomes are constantly changing. This has resulted in an increase in working hours. In one corner of...
Switchover to medium-term approach PUNJAB will adopt a multi-year approach to budgeting by switching over to Medium Term Budgetary Framework (MTBF) for estimating its annual budget from the fiscal year 2005-06.It will be part of of budgetary and financial reforms. The province is implementing the change in the budgeting mode...		Investing in urban renewal LATE but not very late, Sindh has started getting some attention from the planners and decision makers in Islamabad and Karachi who are now making some blue prints for the future development. For long, the development in the province has remained directionless. There are neither reliable statistics nor data...
Cash-strapped Balochistan A ballooning budget deficit, up by an estimated 350 per cent, has forced the Balochistan government to resort to indiscriminate borrowings from the State Bank of Pakistan. The original budget deficit...		NWFP’s fiscal worries THE formulation of the NWFP next year’s budget is expected to follow the set pattern which is not likely to be much different from what has been seen over the years....
Privatization news gives shares cause to celebrate THE bidding date announcement for the sale of controlling shares of the PTCL on June 10 has reinforced the investor-perception of a major boost to stock trading during in coming days which was reflected by the strong weekend rebound. Together with the National Budget — as was widely speculated of carrying...		Rupee moves both ways against dollar THE Pakistani rupee showed a mixed trend during the past week. While on the first day it fell modestly against the US dollar but managed to gain three paisa a day later in the open market. However, by the close of the week it had drifted lower shedding 15 paisa for buying and selling at Rs60.25 and Rs60.30, respectively....
Forex reserves increase by Rs826.416m over a week ON May 11, the State Bank of Pakistan increased the cut-off yield on three-month and one-year treasury bills by one percentage point each. It sold worth Rs84.47 billion three-month bills at...		Commodity market stays stable THE wholesale commodity market lacked normal trading interest last week as prices of main essential items were traded around their previous levels. The arrivals from upcountry markets, notably wheat and some...