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It has been reported that when the Nawaz Sharif government assumes office, its designated finance minister Ishaq Dar would propose imposition of wealth tax and a widespread in the budget for fiscal year 2013-14. This proposal, if it becomes a component of the budget, would indicate that revenue constraints are being accorded a greater priority than the resolution of all other major macroeconomic indicators such as raising savings which, in economic theory, form an identity with investment acknowledged and supported by the PML (N) as the major engine of growth; in addition it would also reflect the fact that reliance for generating higher revenue is being placed not on an out of the box solution required at this critical juncture of the state of the economy but on an old outdated concept that is currently being supported by only one or two countries throughout the world including India that imposes a one percent tax on wealth in excess of 30 lakhs with non-residents returning to India exempted for seven years.

Holding separate meetings in Islamabad and Peshawar on Thursday, the National Commission on the Status of Women and some non-governmental rights groups expressed serious concern over the fact that mainstream religious and political parties colluded in various parts of Khyber Pakhtunkhwa to disenfranchise female voters. In Lower and Upper Dir they signed formal agreements, in blatant violation of the ECP's rules, to keep women from exercising the right to vote.
Decline in overall stock of external debt and liability is normally considered a healthy development for a country. Seen against this background, the news in the Business Recorder on 17th May, 2013 that stock of external debt and liabilities of the country had declined by seven percent or over $4 billion during the first nine months of the current fiscal year would appear to a good sign for the economy. The fall in the stock of total external debt and liabilities was reportedly due mainly to repayment of loans to international financial institutions, particularly the IMF.
Of all the challenges likely to confront the Nawaz Sharif government the earliest to come up for a policy decision would be Pakistan's position to the CIA-operated drone strikes inside its territory. Even when the foreign policy issues were generally kept on the back burner during the election campaigns, the drone attacks - invariably condemned as violative of Pakistan's sovereignty described by the contestants - attracted lot of flak, with parties demanding an instant halt to such attacks.
The Ministry of Finance (MoF) has reportedly expressed serious reservations over the failure of distribution companies (discos) to improve recovery. The reason is simple: it is the Ministry of Finance that is pressured by the political leadership to release funds as and when the inter-circular debt in the power sector begins to compromise the ability of Pakistan State Oil (PSO) to pay for the necessary fuel imports to ensure a certain minimum level of generational capacity to reduce loadshedding that is causing serious negative socio-economic implications.
Two terrorist bombings left at least 21 people dead and 120 others injured - 70 of them seriously - as they offered Friday prayers at a mosque in Bazdarra village of Malakand Agency, a tribal region in Khyber Pakhtunkhwa. More lives would have been lost when a second time device went off minutes later at another nearby mosque, but for the fact that the faithful had hurried out to help the first attack's victims. The brutality matches the TTP's signature style. Nonetheless, it has not claimed responsibility for the attack. The post-election scenario too suggests it is unlikely to be involved.
ImageCreation of Pakistan Remittance Initiative (PRI) by the then Finance Minister, Shaukat Tarin, and the then Federal Minister of Overseas Pakistanis, Dr Farooq Sattar, was the best initiative of the last government in the realm of foreign exchange. Housing it in the State Bank of Pakistan instead of Islamabad was also the right step. It helped in keeping the current account deficit in check.

 



 
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Banking Review 2012

Annual2011/12
Foreign Debt $65.562bn
Per Cap Income $1,372
GDP Growth 3.7%
Average CPI 10.08%
MonthlyApril
Trade Balance $-1.779 bln
Exports $2.130 bln
Imports $3.909 bln
WeeklyMay 20, 2013
Reserves $11.601 bln