One of our principal commodities that 80 percent of our farmers grow on around 40 percent of the cultivated land remains in the doldrums. Of course, we are talking about the staple diet, wheat, which has reached an enormous surplus yet rots away because of failure to export (or store).
The current account is under pressure, inflation is picking up and there is no adjustment in currency; what could be prudent monetary policy response, rate hike? Well, in Darnamoics running a tight monetary policy is out of question, especially when the fund programme is concluding. Hence, only viable option left is no change in stance on Saturday, and the market is expecting the same - all of the fourteen houses contacted by BR Research are expecting status quo.
Indeed, the more things change, the more they stay the same. Back in 1997, Ashley J. Tellis, an Indian-origin US diplomat and scholar, predicted in a Rand corporation study what has come to hold largely true twenty years on:%D%A"The Indian subcontinent is likely to enjoy an extended period of "ugly stability" that will probably last for at least a decade and possibly more. This peculiar form of stability derives substantially from the inability of both India and Pakistan to attain what may be desired political objectives through war.
Amid continuous slide in exports, and a visible slowdown being seen in home remittances, there is no good news on the foreign direct investment front either. As per SBPs numbers, FDI has posted a decline of over 53 percent during 2MFY17. In absolute terms, the decline in FDI for July-August 2016 was around $128 million.
Two central banks on either side of the pacific tried to flex their muscles yesterday. In the morning the Bank of Japan (BoJ) shifted away from its fixed line of monetary easing and is now open to a more flexible approach. While later in the day, the Federal Reserve maintained its funds rate.
The ride-sharing rivalry is just getting started. Careem, the middle-eastern taxi-hailing app, and Uber, the US-origin behemoth, are fighting for share of commute in dense Pakistani cities of Karachi and Lahore.
Although the CPEC portfolio is primarily composed of coal projects, there are a number of renewable energy projects as well. Currently, there are 300MWs of wind power and a planned addition of 1000MW of solar power plants.