A jolt from Japan

These mostly have revolved around key developmental projects related to health, economic structural adjustment efforts, water supply systems, earth quake rehabilitation, road network and electricity. More recently, Japan pledged $10 million in Emergency Grant Aid as assistance for internally displaced persons to be carried out through WFP, UNHCR, and the UNICEF.
So essentially pulling the plug on Pakistan, by virtue of suspension of aid to third world countries, means another blow to the fiscally challenged government. Bear in mind that the country is already deprived of opportunities to raise debt from international capital markets and attract heavy foreign investment due to global economic slowdown.
Although the change in Japanese aid policy has nothing to do with Pakistans economic or political dynamics, this has once again exposed the vulnerability of our economic system to exogenous factors such as foreign aid and international commodity prices. Our internal policies must be refocused on domestic elements to shield us against these external shocks.
All information and data used are from reliable source(s) and subjected to extensive research after diligent and reasonable efforts to determine the soundness of the source(s). This analysis is not for the benefit of or discredit to any person, scrip or tradable instrument. The content(s) of this analysis shall not be construed as an advice or recommendation to trade. No relationship of client will be created between Business Recorder and user of this information. Professional advice must be taken by the reader before making investment/trading decisions. BR disclaims any liability for investment(s) made or liability accrued on basis of this analysis. The content(s) including all opinion(s), statement(s) and information are subject to change without prior notice and/or intimation.