General Economic Updates

[maithil]

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I'm surprised they didn't hire mohsin Naqvi for it
Maybe because he was way too overqualified

Interesting choice ..

 

[Fatman17]

Barrick Gold in talks to raise $2bn for Pakistan’s Reko Diq https://www.thenews.com.pk/print/1184399-barrick-gold-in-talks-to-raise-2bn-for-pakistan-s-reko-diq

 

[SaadH]

Interesting choice ..

They couldn't do this in-house?

My experience working with these consulting firms is one of extreme skepticism. They operate on inflated budgets, with excess personnel resources and have very few people with real skills sets on their payroll. Any given team they deploy anywhere has multiple project managers, multiple documenters, multiple process emgineers and multiple architects, when they can easily suffice with a team fourth of the size.

For a country that's teetering on bankruptcy with very little dollars to go around, paying exorbitant foreign currency to a foreign entity is the height of idiocy and smacks of extreme corruption. But that's the new jamedar paradigm, so par for the course.

 

[maithil]

They couldn't do this in-house?

My experience working with these consulting firms is one of extreme skepticism. They operate on inflated budgets, with excess personnel resources and have very few people with real skills sets on their payroll. Any given team they deploy anywhere has multiple project managers, multiple documenters, multiple process emgineers and multiple architects, when they can easily suffice with a team fourth of the size.

For a country that's teetering on bankruptcy with very little dollars to go around, paying exorbitant foreign currency to a foreign entity is the height of idiocy and smacks of extreme corruption. But that's the new jamedar paradigm, so par for the course.

Could have easily hired an in-house team to deliver it. Even if they had to hire a contractor, going for McKinsey is revealing. Langley/State Dept will have full access to Tax database. Maybe that was the intention.

 

[Fatman17]

Manara Minerals’ team in Pakistan for talks on Reko Diq stake https://www.mining.com/web/saudi-ma...-talks-on-reko-diq-mine-stake-document-shows/

 

[Fatman17]

Could have easily hired an in-house team to deliver it. Even if they had to hire a contractor, going for McKinsey is revealing. Langley/State Dept will have full access to Tax database. Maybe that was the intention.

Not to mention kickbacks

 

[RescueRanger]

‘Business, industrial activities shrink to 40pc’ https://www.dawn.com/news/1829296

@PakFactor remember what we discussed last year?

 

[PakFactor]

@PakFactor remember what we discussed last year?

I remember. It's playing out exactly as you said.

 

[RescueRanger]

I remember. It's playing out exactly as you said.

Dining table politics zindabad. Wait till you see what is being mentioned at the moment, I will share more soon in DM InshaALLAH.

 

[PakFactor]

Dining table politics zindabad. Wait till you see what is being mentioned at the moment, I will share more soon in DM InshaALLAH.

Inshallah, bhai. Also, keep a close eye on Dubai. They will be the spoilers in all this.

 

[Fatman17]

Pakistan bets on a cannabis high as its economy struggles https://www.aljazeera.com/news/2024/5/8/pakistan-bets-on-a-cannabis-high-as-its-economy-struggles

 

[Fatman17]

Inshallah, bhai. Also, keep a close eye on Dubai. They will be the spoilers in all this.

Do share your secrets!!!

 

[PakFactor]

Do share your secrets!!!

I will do it, brother, slowly in due time.

 

[Fatman17]

IMF estimates Pakistan’s financing gap to be $9.1bn over three years https://www.thenews.com.pk/print/11...-s-financing-gap-to-be-9-1bn-over-three-years

 

[ghazi52]

Non-productivity of real estate

The country needs to increase its revenue and rationalise expenditures, Mr Ye remarked. As an example, he highlights the real estate sector where a lot of savings are invested. The real estate sector is “just financial addition with no value addition. If the country invests in its natural resources instead, the country will start rolling,” he said.

Inflation is on a downward trend, and if this trend continues, the monetary policy rate will come down, Mr Ye opinioned, resulting in a smaller burden of debt servicing and more fiscal room. This will also unlock the investment and borrowing by the private sector, he hoped.

Since there is a lot of pent-up investment demand during the period of high interest rates, Pakistan may enter into a boom cycle when the rates start coming down. But for the revival to be sustainable, ‘it all comes back to reforms’,’ he said.

Remaining pledges

While ADB was among the institutions that pledged support after the disastrous floods of 2022, almost the entire amount has yet to be disbursed. ADB had pledged about $1.5bn, of which only $108.79 million has been released according to a media report, with a further $340.9m expected this year.

In response to why there has been a delay, Mr Ye said that the amount pledged was for reconstruction and that the process cannot be rushed. “The damages have to be assessed along with the ground realities, keeping in mind the new climate risk profile and the possibility that these areas may be flooded again,” he said.

Pointing out that water was still standing in some areas till the start of this year, Mr Ye said that the new climate risk profile needs to be assessed before the feasibility study. Some roads need to be redesigned, followed by the procurement process, contract award, and finally, disbursement. The entire process is lengthy.

Mr Ye identified several critical areas for Pakistan’s long-term economic growth. These include controlling inflation, reducing the fiscal deficit, and diversifying the export base.

Published in Dawn, May 12th, 2024