Category: Economy

Power Tariff hiked by federal government In a bid to restart the IMF program, the federal government has hiked the electricity tariff by PKR 1.95/kWh. The estimated PKR 200bn impact is a major step in curbing the growth of the circular debt, which has recently crossed PKR 2.3tn. While the higher power tariff has the… Continue reading Analyzing sector impact- Power Tariff hiked I Gas-supply disconnections

CPI during Jul20 is estimated to register at 8.9% as against 8.6% during Jun20 and 8.4% during Jun19. On a monthly basis, inflation is estimated to lift up by 2.1%. Sharp inflationary pressures during the month largely emanated from higher food prices and the considerable increase in domestic petroleum prices. Food inflation and transport index… Continue reading CPI estimated at 8.9% during Jul20

According to the well-known Marshal-Lerner conditions, a depreciation in exchange rate leads to improvement in balance of trade only if the sum of elasticity of export and imports is greater than 1. This theory had its test of time and I also had the opportunity to test the conditions empirically using econometrics techniques for Pakistan… Continue reading A saga of dominant currency paradigm and trade balance

The developed nations are also in a quagmire right now. First, it was the splash of cash to people & businesses. Stimulus worth 8-10% of GDP were a norm. Oh but that had an expiry. Despite the govt support, economies are still 20-30% behind the pre-covid days. This too is with crutches. The countries need… Continue reading Feeble global recovery, despite massive fiscal supports!