Dr Kamal Monnoo

  • TThe Asian Development Bank has recently given quite a grim warning about the Pakistani economy by essentially citing that the growth trajectory will remain on a declining trend at least for the foreseeable future. With the GDP growth rate currently at a paltry 2.80% and expected to be further under ...

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  • TPrime Minister Imran Khan has done well by making a pit stop in Saudi Arabia while on his way to the US. The markets have reacted sharply to the drone attacks on Abqaiq and khurais, wiping off (albeit temporarily) nearly 5.7 million barrels per day from the global crude supplies – Crude since ...

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  • TMartin Luther King Jr. once said that “We must create full employment or we must create [basic, guaranteed] incomes.” The irony is that more than 40 years later, we just talk a lot about the last half of that statement, whereas, there is virtually no real talk about the philosophical ...

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  • TThere are conflicting reports going around in the media regarding the outcome of the recently concluded meeting held in Canberra, Australia, of The Asia-Pacific Group (APG), a regional affiliate of the Financial Action Task Force (FATF). While Pakistan maintains that its presented report was in ...

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  • TIt seems that that the country’s system is being run collectively by the three main organs of the state where decisions are taken in sync and responsibility of the outcomes are also hopefully assumed jointly. Now, this is a good omen for the country, which not only needed harmony but a joint ...

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  • TRegardless of who is to be blamed the reality is that economy is in a mess! Economic activity has shrunk dramatically (I can quote from a reliable source that till July 10th, not a single bag of yarn was traded in the Faisalabad yarn market, the largest in the country); exports are consistently ...

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  • TAbout a fortnight back the Indian Government announced its first post Elections 2019-20 Budget, and it will be interesting to see how it compares with the first Budgetary Announcements 2019-20 of our new government here at home. The recent Indian Budget is being hailed as a classic from the ...

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  • TContinued… Footprint of the Government – This stems from an inherent mindset of distrust on the private sector displayed by successive Pakistani governments that keeps on pushing capital in the public sector domain – No marks for guessing that the public sector essentially is a ...

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  • TWhen it comes to economic management, these first ten months of the Imran Khan led government have been quite tumultuous, to say the least. Heads have rolled (all the way from the Finance Minister to the Finance Secretary), tenure posts have been made a mockery of (governor central bank, chairmen ...

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  • TC ontinued... Not only will the government need to revisit the above to see where changes are needed to rekindle interest in exports, but to also restore the entrepreneur’s confidence – the current mistrust between the businesses and governmental institutions is by all accounts since ...

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  • TDespite a 32% devaluation why are the Pakistani exports not increasing? Answer: Because everyone is either corrupt or incompetent, but now this ‘Change (Tabdeeli)’ and ‘Drive-of-Accountability’ will soon put everything right – Please just have patience! On a more ...

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  • TAs the economic indicators nose dive, conspiracy theories run galore: On how the Finance Minister’s only agenda is to deliver the IMF program; IMF negotiating with IMF; why Reza Baqir is an ‘economic hit man’ from Washington, etc.! Had I not known Reza personally, maybe I would ...

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  • TSo the PTI stalwarts are claiming that their policies are working as the import bill is significantly shrinking (has already shrunk by nearly $4.50 billion and on course at this rate to reduce by as much as $7 billion by the end of June 2019), thereby taking the pressure off the external account. ...

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  • TSo the Finance Minister, Asad Omar, has been sacked and for people criticizing this move, one fails to understand that what is all the fuss about? Here was a person who was not delivering: economy was in a free fall, both the stakeholders and the markets had lost confidence in him, and therefore it ...

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  • THeroism and Charisma are intertwined. So much so that Max Weber, the famous sociologist, maintained that ‘personal heroism’ was one of the most important indicators of ‘genuine charisma’. It is, therefore, no accident that when national heroes take to politics they claim ...

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  • TDespite a 32% devaluation why are the Pakistani exports not increasing? Answer: Because everyone is either corrupt or incompetent, but now this ‘Change (Tabdeeli)’ and ‘Drive-of-Accountability’ will soon put everything right – Please just have patience! On a more ...

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  • TReckon once the Finance Minister is done with his priorities of what anyone’s surname should be or should oratory be in English or Urdu or with handing down certificates of patriotism, he should shift his focus back on the economy, since it is simply not responding to his style of leadership ...

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  • TNearly 8 months down the road one is beginning to wonder that when the government is well-meaning, its heart and mind are in the right place, its economic team is not only experienced and has had reasonably good credentials, but also seems correct in its policy direction, so why then is the Pak ...

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  • TBangladesh is fast assuming the mantle of the new South Asian Industrial Powerhouse. Political and economic stability, social cohesion and a dynamic business environment are propelling Bangladesh to new economic heights. In recent years it has established a position as one of the most attractive ...

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  • TEconomic and political outcomes are intertwined and mutually reinforcing. And in 2019, the consequences of the bad policies and worse politics of the last six years will come more fully into view. It is for this reason one feels the government’s economic package (announced on last Wednesday) ...

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  • TOn paper at least, the PTI has a reasonably good economic team headed by the Finance Minister Asad Omar himself, and ably supported by the experienced Razzaq Dawood and Dr. Ishrat Hussain, plus its thinking and heart seems to be in the right direction: job creation; investment; correction of twin ...

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  • TIs CPEC (China Pakistan Economic Corridor) controversial? Well, while the endeavour is crucial to Pakistan’s economic future, there is no denying the fact that there are a lot of concerns on certain aspects of CPEC, especially in context of its potential to erode Pakistan’s home ...

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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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  • TPakistani rupee during the last two months stands considerably devalued. The question however is that does this help exports? Though the November figures have been somewhat disappointing - exports have in fact gone down - the good news is that Pakistani textiles, which constitute almost 67% of ...

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  • 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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