Dr Kamal Monnoo

  • TWell, the government now aspires to interfere or for choice of better words, wants to influence the decision-making process at the State Bank of Pakistan (SBP). Needless to say, yet again an elementary, but an age-old mistake in the new Pakistan! Relations between the Prime Minister and his Finance ...

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  • TIn principle, one can endorse that the present economic managers want to focus on the right area of the economy: Increasing exports. To achieve this one comes across a number of proposals, as elementary as facilitating the exporters to the rather complex initiative of re-negotiating all bilateral ...

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  • TOne takes it that our Prime Minister not only follows European history, but also uses it as a guide to his decision-making. Very well, however, without debating the interpretation of events such as the Napoleonic wars and the World War II or not getting into an argument about principles vs. ...

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  • TIf a central bank is indeed independent, then what is the primary job cum responsibility of its Governor? Answer: To defend the national currency by ensuring that it is traded at its fair value, as everything else, like controlling inflation (through monetary policy), regulating financial ...

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  • TContinuing on the policy actions and the reforms recommended to the government to turnaround the economy, following measures are additionally suggested to address some of the fundamental flaws in the economy and to bring about the much needed discipline and rigor to economic management: Clarity on ...

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  • TThe uncertainty and the self-destruct mode of the present policymakers are basically the two main factors taking Pakistan’s economy down. Entering its third month in government the economic leadership is still giving vague signals on whether or not Pakistan will be entering another IMF ...

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  • TBy any normal standard, economic policy since the onset of this government has been a dismal failure. It is true that the malaise to a large extent is simply a “carried forward” entry, but then this government so far has also only been adding (that too on a compound basis) to the decay ...

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  • TThis government’s economic performance so far has been unimpressive. All hopes from a finance minister with supposedly an impressive track record in the corporate sector seem to be fading away fast. Policy making, if any, has been slow and unsure, thereby creating an impression that the ...

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  • TPakistan’s new economic leadership and especially the Ministry of Commerce need to realize that modern day global trade is changing course. Gone are the days where countries single-mindedly focused on expansion of trade or had blind faith to slip into the prescribed WTO straight jacket to ...

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  • TThe bar is set high as the new Imran Khan government tries to grapple with the economic situation in the country. Falling right into the trap to live up to its opposition time rhetoric, its different tiers of leadership are busy giving confused and mixed signals to businesses and investors - ...

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  • TA couple of weeks before the elections we had to call an emergent distributors meeting at our company offices as the sales team informed the management that production’s off-take was slow and inventory was piling up. When the problem was presented to the distributors there explanation was ...

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  • T‘Reforms’ seems to be the buzz word these days in talking about addressing long standing challenges to the Pakistani economy, but what exactly does this mean? It is all very well to be talking in generic terms about the urgent need for third generation reforms in Pakistan, but such ...

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  • TWith all the on-going trade wars cum posturing in the developed world: China vs. USA; USA vs. EU; Canada vs. USA; EU signing a historic trade deal with Japan; China signing a new deal with the UAE; etc., the question is that does it also affect Pakistan or not? Answer: Yes, of course it does and ...

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  • TGiven that the exercise of appointing a caretaker set-up, to oversee elections, affects economic policymaking for near about 4 months (1 month prior to the elections + 2 months in office + 1 month post elections) the questions is that what exactly is at stake? Answer: About US $ 95 billion worth of ...

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  • TPakistani Rupee (PRs) has been tumbling over the last few weeks, ending at almost 124 (to a US Dollar) in inter-bank trading on Thursday’s close before the Eid holidays. This free fall of almost 19% in a very short span of time should have troubled most governments, but then in Pakistan ...

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  • TStrategic government investments, but managed by a range of private public partnerships (PPP) has seen Bangladesh become one of the fastest growing economies in the world. Today, Bangladesh is a booming economy, recently making the list of low-middle income countries as published by the World Bank. ...

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  • TThe head winds towards Pakistan’s economy are getting stronger by the day, with the country seeming all but trapped in an ever-tightening debt strangle, albeit without really seeing any of the possible fruits of a debt-spend find the light of the day so far. Reason? Because, bulk has been ...

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  • TA lot of analyst these days are writing about how our external debt increased by almost $55 billion during the period 2008 to 2018, essentially in the democratic period after the end of Musharraf’s tenure. Well it may be worth mentioning here that ironically, most of these writers in one way ...

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  • TWith the change of government round the corner, do we have another currency crisis on our hands? Last time it happened at the advent of Zardari’s Government, in 2008, when the bottom fell beneath the Pak Rupee, devaluing it by nearly 30% within days. And if we do, then other than the external ...

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  • TWe have read a lot of positive and negative commentaries on the recently announced Budget 2018-19, and even views to an extent that it should not have been announced in the first place, since PML(N), being on its way out lacks legitimacy and should have respected the mandate of the incoming ...

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  • TThere is a lot of politics going on the recently announced tax amnesty scheme by the PML (N) government with the debate (if you can call it that) ranging from the timing; mandate of the government to even announce such a scheme; whom will it really benefit; rewarding the evaders; to the possibility ...

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  • TThe above is exactly what the Pakistani government needs to convey quickly and clearly to the developed world and that too with a degree of certainty and honesty, if we are to avoid being black-listed in the upcoming June session of the FATF (Financial Action Task Force). Essentially, Pakistan ...

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  • TPresident Trump’s recent declaration imposing a tariff of 25 percent on American imports of Steel and 10 percent on Aluminum has both angered and alarmed the country’s friends and trade partners. The Europeans on their part have started to consider retaliatory trade penalties, targeting ...

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  • THere I was defending that PML-N had finally assembled a decent economic team in Shahid Khaqan Abbassi, Haroon Akhtar and Miftah Ismail (never mind Rana Afzal who perhaps is only a political face), all qualified gentlemen, but the way they have managed economic policies in their brief tenure as a ...

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  • TLike it or not, in its 70 years history, textiles is the only globally competitive stand-alone industry that Pakistan has created. The definition of standalone being that given a level playing field vis-a-vis its international competitors, the industry can hold its own both in terms of quality and ...

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  • TSo what has this PML-N government really missed out during its term? Answer: Meaningful and broader reforms. To add clarity to this rather generic term, reform is an on-going process adopting to new evolving global realities, and in essence means that while investment is very essential, its real ...

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  • TPakistan’s economy is currently faced with two main issues: 1) Uncertainty and 2) Perception. Discussing uncertainty first, while the last two years on average have been good for corporate results, especially for companies locked into the domestic market, the outlook going forward is getting ...

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  • TFinancial innovation has been critical to progress around the world. A well-functioning financial system, one that allows risk management, raising funds and so forth, is a mechanism by which scientific or technological ideas get turned into growth. It is not magic or an illusion, but simply put, ...

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  • TIn order to protect the environment and water basins, the Punjab Government last week imposed a ban on setting up more cement mills in the province. Merits or de-merits aside of a such a policy measure taken in isolation – with 100% capacity utilization, as at present, such bans unless ...

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  • TSo why is India winning the perception war against Pakistan? The answer can be traced back to the 90s when the Indian Finance Ministry, the Reserve bank of India and the Planning Commission of India jointly formed a strategy (under the guidance of the then leadership, likes of Manmohan Singh and ...

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