It seems that post-election legitimacy issues are not unique to Pakistan. In recent months, elections in Indonesia and Afghanistan have ended up in strife. It warrants an examination of how these two countries have approached the issue. Maybe, Pakistan can learn a thing or two from them.
Country’s economic managers are in Dubai to negotiate on the fourth review with the IMF. This is for the release of fifth tranche of $550 million from the Fund under the extended finance facility of $6.6 billion. The review was due in July but has deliberately been delayed by the lender to let incumbent government achieve a couple of structural benchmarks including hiring of financial advisor for PIA’s privatisation.
Remittance from Saudi Arabia is a gift that keeps on giving. Well, it’s not the kind of gift that Dar proudly received; rather it’s the hard-earned money of Pakistani expats toiling there in sweltering heat. The figure shows that in the last decade, Saudi-origin remittances’ share has doubled in Pakistan’s overall remittances to 30 percent in FY14. These inflows have consistently outgrown and driven Pakistan’s overall remittances during this period.
For the nth time running, there were hardly any takers for the treasury bills on offer in the 6- and 12-month tenures. And it all makes sense. When the alternative PIBs are offering double-digit lucrative rates with short maturities, single-digit returns on T-bills do not have enough to entice market participants. The government fetched over Rs87 billion in the latest t-bill auction, missing the Rs100 billion mark by some distance, yet again.
It’s not as if the dismal state of South Asia trade had not been highlighted before. Indeed, as a region, South Asia had failed to adapt to global dynamics, whereby countries have taken advantage of regional clustering instead of solely relying on distant, developed economies of the world for trade.