Pakistan Economy Watch (PEW)

What after chicken is beyond reach?

A top official has rightly advised poor to eat chicken as the price of other provisions have rocketed out of sight and now man of the street can only think about it.
A million dollar question has been haunting economists as well as analysts — what after chicken is beyond the reach of majority of the people of the pure who were never in history were economically challenged in this way.
This phrase deserves to be recorded in history like that of French Marie-Antoinette (1755-93), the Queen consort of Louis XVI. She is supposed to have said ‘let them eat cake’ when she was told that the French populace had no bread to eat.
The similarity between thinking of French and Pakistani nobility shocked many. The recent comment that came centuries after the French phrase is not only a remark but speaks volumes about the mental inclination of our leaders who are not only least bothered about their subjects but cannot care less about the ailing economy of the country. read more…

KSE, a car without breaks stopped by violence

CW membership and sale of banks vital to lure foreign capital

Karachi Stock Exchange, Asia’s only rising market that proved immune to global slump was flourishing on several factors but yesterday’s political violence has put brakes to it.
Deteriorating security situation has heightened the investors’ concerns that need to be tackled, as the foreign capital sitting on the sidelines will not be tempted enough to step into Pakistan.
There were several reasons for the bullish trend with political stability on the top but the riots are the only reason for its dive. Strong fundamentals and technical reasons that were supporting market seem to be evaporating.
KSE-100 had closed at records highs several times this year and forecasts said that it would easily touch the 16,000 mark by the end of April. read more…

Outdated mineral policies needs to be changed: Dr. Mughal

Excessive federal control is putting brakes to progress in remote areas 
Government needs to change old-fashioned federal mineral and metal policies to exploit potential in the resource rich province of Balochistan, NWFP and Northern Areas.
Dollar is loosing its worth and now people are investing in oil, gas, commodities, minerals and metals that has resulted in high prices and demand.
This development offers a hope for progress and prosperity in country if investors are lured and work force is trained, said Dr. Murtaza Mughal, President of Pakistan Economy Watch while talking to Post exclusively.
The government has allocated Rs 221.9 million for projects related to minerals under Public Sector Development Program 2008-009. Major projects include Feasibility Study Gasification of Thar Coal (104.0 million), National Coal Policy (Rs 22.7 million), exploration and evaluation of coalfields of Chamlang-Bala Dhaka, Bahlol and parts of Ghazi Basin in Balochistan (Rs 10.9 million) and establishment of project monitoring and evaluation cell (Rs 18.0 million), he informed.
He said that given the international scenario, these allocations seems insufficient and Government needs to tailor its policies regarding mines and minerals and give some autonomy to provinces and regions as controlling mines etc from Islamabad has proved counterproductive over a long period. read more…

Wisdom behind Moody’s report questioned

Situation in Pakistan will improve soon: Dr. Mughal

Pakistan Economy Watch has questioned wisdom behind report of US based Moody’s Investors Service which has claimed that rupee will run down to 78 against US dollar in two years.
Rupee is stabilizing since the State Bank of Pakistan has taken some stringent measures and the recent report by the agency failed to dent the currency, said President of Pakistan Economy Watch Dr. Murtaza Mughal in a statement issued here Monday.
The rupee remained stable despite warning which proves that market forces have rejected the report, he added.
The rupee remained stable at on Saturday and Monday against the dollar despite the controversial report.
The author of the report — Aninda Mitra, a Moody’s VP can be a good storyteller rather than analyst, said Mughal adding that how come anyone guesses that current economic and political situation in Pakistan will remain tense over the next two years and rupee will continue to slide.
He said that the political and economic situation in Pakistan is not very weak and it will improve soon as Government is trying best to fix things. Moreover Pakistan will remain important on the international geo-political scenario. Peace agreements are working well and peaceful Long March has subsided worries of business community. Restoration of judges is also in sight and masses are hopeful about situation. read more…