Dear Friends, The state of the economy worries me. Last week’s Monetary Policy Statement (click here) reads mildly positive in its tone, but the finer print is not so rosy. The State Bank noted that due to shocks in cotton production and contraction in large scale manufacturing, the government will not meet its economic growth target of… Continue reading Pakistan Macro Blog: Entanglement
Category: Economy
Macro Blog: Breaking The Balance Of Payment Trap
Dear Friends, I got back to Karachi on Saturday. Over the last weekend, my colleague Faisal Irfan and I tracked the balance sheets of the top 30 companies which are a part of the KSE30 Index. In a typical growth market with high ROEs, an optimal balance sheet should have high leverage. However, we were… Continue reading Macro Blog: Breaking The Balance Of Payment Trap
