A host of discrepancies is becoming visible in a variety of economic numbers released at various forums. The recent case of underreporting of GDP numbers in the IMF LOI, which the finance ministry blamed on a typo, is one such example. Or, the $1.5 billion gift from KSA, which was initially shown as “statistical discrepancies”. The story of showing 5.1 percent GDP growth in first quarter by PBS was not different. The latest addition to the list of discrepancies comes on the external account front.
Back in the days of the Raj, about 17-19 percent of the budget was spent on policing. That number slipped to average about 11 percent in the 70s and 80s. Now, in FY15, provincial spending on police will average about 7 percent of the combined budgets of the four provinces of Pakistan, despite an ever increasing need for effective policing across the country.
Five of the biggest local banks were awarded an improved outlook on local currency deposit ratings by the market favourite Moody’s Investors Service. The market’s response!? Dull!! Rather surprisingly, each one of the leading five banks fresh from a change in outlook from negative to stable-–saw their share prices dip, while the market made new highs.
Soon after the allowance of window takaful operations, conventional insurers have been itching to adopt the newest wrinkle. Following in the footsteps of Jubilee Insurance, EFU General has now expressed its willingness to get regulatory approvals from SECP to enter into the takaful business.
July 17, 2014, would go down in history as the day when KSE-100 finally crossed the 30,000 mark. A healthy gain of 400 points in a single day helped the index to close at an all time high of 30,177 points, taking CY14 to date return to 19 percent.
A willing borrower, an even more willing lender--good rates ought to be the product. This is what the PIB story has been of late. The most recent auction result threw a few surprises though, both in terms of participation and the yields. For the first time in 2014, the target was missed and that too, considerably, as government accepted bids worth only Rs56 billion.