This website uses cookies to ensure you have the best experience. Learn more

Pakistan Economy 2 Essay

1819 words - 8 pages

| |
|
Entropy Alert: Implications of the Advancing China-US Rivalry in Asia-Pacific September 21, 2010 Entropy Alert: The Start of a New Phase of War Against Terror in Pakistan August 3, 2010 |
AnalysisThe Need for RGST Pakistan desperately needs to increase its tax revenues by adopting a more wide-ranging, modern sales tax on products and services. The Sales Tax Act of 1990 was based on established value added taxation principles but due to revenue exigencies and political compromises, it became increasingly narrow-based and distorted, with ever-growing list of exemptions, multiplicity of rates, special regimes and a number of other deviations from the best international practices ...view middle of the document...

The new tax system is expected to generate 100 billion rupees in revenue. It is believed that a failure to adopt the RGST will lead to a record budget deficit of 1.2 trillion rupees, which may force the government to borrow more than one trillion rupees from the domestic market to finance the deficit. In that case, the Central Bank of Pakistan may have to raise the interest rates by up to 2% in order to counterbalance the inflationary impact. The government has already borrowed 200 billion rupees from the central bank for financing the budget deficit. Meanwhile, revenue collection during the first five months of the current financial year is already lagging behind the target by 76 billion rupees. "The increasing gap between income and spending will shift almost the entire burden of financing on domestic sources," a source said. The State Bank has admitted that the government borrowing to finance the budget deficit is fuelling inflation, causing interest rates to rise. Officials of the Ministry of Finance claim that if the government fails to get the RGST approved from the National Assembly, it will result in the discontinuation of foreign aid including payments of the US Coalition Support Fund and funding from IMF that Pakistan desperately needs. The IMF's suspended bailout program for Pakistan still has two installments left that are worth 3.4 billion dollars. In face of the political challenges, IMF recently agreed to give Pakistan more time to carry out reforms. |
|
|
|
Positions Of Different Political Parties On RGST The Reformed General Sales Tax (RGST) was approved by Pakistan's Senate Assembly on 26th November under controversial circumstances. In the post flood scenario, RGST has widened the rifts with in the Pakistan Peoples Party (PPP) alliance. PPP is totally supportive of RGST and wants it to be approved at any cost. Opposition parties, public and civil societies, on the other hand, are against the bill, as they believe that RGST will almost double burden of ever-growing inflation rates on the poor. Opposition, as well as some of the key alliance partners of the PPP-led government, opposed the imposition of the tax, while Pakistan Muslim League-Q members walked out of the House. The GST Reforms Bill was expected to be tabled in the National Assembly on 20th December for final approval but has been delayed due to parting previously of Jamiate Ulema-e-Islam-F, and now Muttahida Qaumi Movement (MQM), from the PPP led ruling coalition. Recent negotiations between PPP and its key ally MQM over the implementation of RGST failed. MQM desires direct taxes to be imposed on the agricultural sector- a move that according to them can broaden the nation's tax base, which currently stands at just 1.8 million or 1% of the total population. "We will not support RGST even if we are killed" said Senator Abdul Khaliq Pirzada of MQM, indicating how serious the party is in attempts to block the imposition of RGST. The other key allies of the...

Other Papers Like Pakistan Economy 2

Insurance Sector In Pakistan Essay

611 words - 3 pages attention for its growth, development and rapid expansion to meet the challenge of 21st Century for accelerating socio-economic growth of Pakistan with an emphasis on wider prosperity. Insurance Sector has registered a very slow growth in the history of Pakistan. Based on our research, the following conclusions emerge: 1. Listed insurance sector on Karachi Stock Exchange in terms of companies is only 4.4%. 2. Share of listed insurance sector on

Child Labor in Pakistan Essay

3668 words - 15 pages Pakistan considering the current economic situation and educational infrastructure in the country and because it could give some economic and social benefits to the nation; therefore, the ban against child labor may have drastic effects on the economy and the society. It is argued that child labor deprives a child from primary education but the unsatisfactory quality and less provision of education in Pakistan are obstacles in educating these less

War Against Terrorism in Pakistan

5442 words - 22 pages countries of the world like India, Iran, Afghanistan and China. Separate *2 Terrorism puts adverse impact on the life of individuals. It is not only put bad impact on individual’s life but also entire society is encircled. Flames and flames are encircling the whole Pakistan. Every city is now under the influence of terrorism. It affects the mental health of people. People fear around the whole country. Is this Pakistan? We were fighting and demanding for

Present Trade Rekatuin Between India And Pakistan

3694 words - 15 pages Pakistan remain negligible. This often results in political rhetoric, further hindering cross-border trade. Though the statistics reveal a definite growth in favour of India, yet it does not define the true potential that can emanate from strong bilateral relations. Owing to high trade costs, an estimated US $ 3 billion of informal trade happens between the two countries, which can well be brought into the mainstream economy through

Country Program Estimate 2011–12: $79 Million

2648 words - 11 pages Pakistan Governments. It will form the basis of ongoing engagement on the GoP's development priorities and the performance of Australia's aid program to Pakistan. Australian assistance to Pakistan focuses on health (particularly maternal and child health) and basic education, aligning with key Millennium Development Goals (MDG) 4 (child mortality), MDG 5 (maternal health) and MDG 2 (universal education). The program also seeks to build human capital

Pakistan and India Relationship

1250 words - 5 pages consider a preferential tariff and reduced non-tariff barriers formula for Pakistan. A Bilateral Investment Treaty can readily neutralise the supply side constraints in Pakistan and the fear of being swallowed by the giant Indian economy. At the end of the day despite huge trade deficits countries have not stopped trading with China. Even Nepal, Bangladesh and Sri Lanka have FTA’s with India. If it’s only politics pulling Indo-Pak back, then the

Textile Industry of Pakistan

2564 words - 11 pages post energy crisis period as compared to pre energy crisis period. Furthermore, Walayat, Usman and Kazi (2012) observed challenges faced by textile industry in Pakistan through qualitative study. The study reveals that textile industry in Pakistan is the backbone of the economy. The challenges faced by this sector are: 1. Energy crisis 2. Fluctuation in Yarn Prices 3. Shortage of gas supply 4. Law and order situation 5

Employment and Job Opportunity

2163 words - 9 pages people and having a sound influence in British government, was the most appropriate person for the post of Governor General of Pakistan. Jinnah’s strategy behind being Governor General was to maintain nation’s trust on “Governor General” as well as British Government’s. 2- Constitutional Requirements: Constitution is the basic requirement of a country as it prescribes the rules and regulations according to which a state or government has to be

Terrorism in Pakistan: Its Causes, Impacts and Remedies

1390 words - 6 pages Terrorism in Pakistan: Its Causes, Impacts and Remedies Outline: * Introduction * What Is Terrorism * Islam’s Response to Terrorism: * Causes of Terrorism: Internal Causes Socio-Economic Causes 1) Injustice: 2) Illiteracy: 3) Poverty And Unemployment: 4) Food Insecurity: 5) Dissatisfaction: Political Causes: 1) Non-Democratic Set-Up: 2) Improper Government Set-Up 3

Quantity Theory of Money

3755 words - 16 pages economy. 4 Objectives The question now arises as to what were the most significant explanatory factors for recent inflation trends in Pakistan? This paper attempts to answer this question. Paper proceeds with chapter 2 a review of literature, including a discussion on the reasons, Chapter 3 is Methodology or Model, Chapter 4 is Data and Data Source, Chapter 5 is Estimation Technique, Chapter 6 is Empirical Results

Analyzing Hr of Siemens Pakistan Engineering Company Limited as a Strategic Partner

2001 words - 9 pages economy. Year GDP Growth Core Inflation FDI(Millions) Unemployment 2005 5.8 7.52 3521 8.30 % 2006 6.8 5.94 5139.6 6.60 % 2007 3.7 8.37 5152.8 6.50 % 2008 1.2 17.55 3179.9 5.60 % 2009 4.1 17.83 2150.8 7.40 % 2010 2 11.17 1772 14.00 % Source: Economic Survey of Pakistan and http://www.indexmundi.com/pakistan/unemployment_rate.html All the above mentioned facts tell us that doing business in Pakistan has become ever difficult than ever

Related Essays

Mdg In Paki Essay

2292 words - 10 pages . However I did enjoy researching about Pakistan overall and do wish the best in their future objectives. Citation page 1. Khan, fazile karim. Geography of Pakistan: environment, people, and economy. Print. 2. “United nation development program." N.p., n.d. Web. 1 Dec 2010. <http://undp.org.pk/mdgs-in-pakistan.html>. 3. "Millennium developmental goals: pakistan2010." development amidst crisis. N.P., n.d. Web. 1

‘Compare And Comment On The Economic And Social Effects Of Flooding In Two Contrasting Areas Of The World’ (15 Marks)

1360 words - 6 pages by many different factors, giving it great effect on human inhabitance in locations close to rivers situated around a floodplain. Pakistan has had a generally weak economy with a GDP per capita of about $2,710 and Cumbria with a GDP of $37,356 this shows us that Pakistan is less likely to have to resources to react to a flooding, while Cumbria will have the money to not only react but put in possible precautions to stop or subdue the flooding

History Of Telenor Essay

1258 words - 6 pages the largest mobile operators in the world with over 179 million mobile subscriptions (Q1 2010) and a workforce of approximately 40,000. Telenor Pakistan is the country's single largest European investor, with investments in excess of US$2 billion. It acquired a GSM license in 2004 and began commercial operations on March 15, 2005. At the end of May 2010 it had a reported subscriber base of 23.65 million, and a market share of 24% making it the

Foreign Policy Of Pakistan Under General Musharraf

3769 words - 16 pages MUSHARRAF 2. POST 9/11 FOREIGN POLICY OF MUSHARRAF a. Pakistan relation with United state (US) I. Ecnomic benefits II. Defence benefets b. PAK-AFGAN RELATION c. PAKISTAN –INDIA RELATION d. PAK –CHINA RELATION e. PAKISTAN RELATION WITH GULF REGION f. PAKISTAN RELATION WITH IRAN 3. Conclusion 4. Bibliography 1. Pre 9/11 foreign policy of Musharraf