Author: Maxter ʚïɞ

This author has written 2722 articles

SUMMARY of the “Social breakdown,” Mansoor Raza, Zahid Farooq, January 13th, 2024

The article discusses the pervasive impact of inflation beyond economic aspects, shedding light on the multifaceted consequences of the cost of living crisis. Drawing insights from discussions with community activists, educationists, social scientists, and the Urban Resource Centre staff, the article emphasizes the profound effects on human relations, especially within families and neighborhoods. As prices soar, familial support diminishes, leading to increased family feuds and strained relationships. The financial burden prompts distressing trade-offs, such as the sale of homes to settle utility bills, resulting in fragmented family units. The article highlights the diminishing communal support during rituals and grieving periods, exacerbating the challenges faced by low-income communities. The rise in living costs has also led to families consolidating under one roof, presenting new social challenges. In education, inflation forces parents to make choices between sending their children to school, disproportionately affecting girls. The increased cost of schooling pushes some towards madressah education, while others opt for low-quality private schools. In response to inflation, families relocate closer to schools, facing additional challenges. The article further explores the impact on dietary habits, emphasizing the luxury status of certain foods and the general curtailment of essential items. The pervasive » Read More…

SUMMARY of the “2024: Rocky road ahead,” Shahid Kardar, January 13th, 2024

The article discusses the economic challenges faced by Pakistan as it enters 2024, despite some indicators hinting at a potential economic recovery. It highlights the disconnect between economic statistics, such as a primary and current account surplus, and the lived experiences of the public. The back-breaking inflation and stringent austerity measures under the IMF program have stifled growth and economic opportunities, contributing to rising unemployment and poverty levels. While annual remittances and the informal sector have sustained the economy to some extent, there is a noticeable impact on the lower-middle and middle-income groups. The article points out the acute external debt servicing problem, potential entry into the IMF’s program for the 24th time, and the challenges in maintaining social cohesion. Structural issues, including political instability, policy unpredictability, corruption in the rule of law, and a distorted tax regime, are identified as impediments to sustainable growth. The author emphasizes the need for a quality-focused fiscal correction that begins with restructuring » Read More…

SUMMARY of the Article “Victims of our own narrative,” by Zafar Masud, Dawn [Published on January 6th, 2024]

Zafar Masud explores the dynamics of market narratives and the role of regulators in shaping economic outcomes, challenging the notion that the market inherently knows best. He contrasts the Chicago School’s belief in market efficiency with the perspective of behavioral economists, emphasizing that human behaviors influence and sometimes distort markets. The author cites instances such as the Asian currency crises and the 2008 banking crisis, highlighting the need for government intervention. In the context of Pakistan, the Heritage Foundation’s Economic Freedom Index places the country 152nd out of 180, indicating a heavily regulated economy. Masud stresses the importance of balancing economic freedom with effective regulation, advocating for regulators to prevent consumer exploitation, ensure perfect competition, and maintain a level playing field. He calls for a comprehensive effort to address conflicts, establish missing regulators, and enhance expertise, making them independent and centers of excellence. The article emphasizes the necessity of a dynamic » Read More…

SUMMARY of the Article “Rising inflation,” by Editorial, Dawn [Published on January 3rd, 2024]

The inflationary challenge in Pakistan appears increasingly difficult to address, with recent data from the Pakistan Bureau of Statistics revealing a rise in monthly inflation to 29.7%, compared to 24.5% a year ago and 29.2% a month earlier. This surge is attributed to the upward adjustment of fuel charges in electricity tariffs and increased prices of essential kitchen items. Weekly price data had already indicated an upward trend, leading to second-round effects as manufacturers and sellers passed on the higher energy costs to consumers. The State Bank of Pakistan had anticipated persistent inflation due to a gas price hike. Year-over-year CPI inflation has surged by almost 29% in the first half of the fiscal year, up from 25% in the corresponding period the previous year. While the SBP, IMF, and the government predict a slowdown in inflation in the second half of the fiscal year, their estimates vary from 21% to almost 26%. Despite the expectations of a slowdown, inflation » Read More…

SUMMARY of the Article “Economic turnaround moment?” by Najy Benhassine and Martin Raiser, Dawn [Published on January 3rd, 2024]

Pakistan, after experiencing an extended period of declining poverty rates, is now confronted with a severe economic crisis due to poor policy choices and various shocks, including Covid-19, catastrophic floods in 2022, and adverse global conditions. The resultant slowdown in growth, increased poverty, and the looming threat of debt default demand deep and sustained reforms. The authors propose comprehensive solutions to address Pakistan’s challenges, emphasizing the urgency to seize this crisis as an opportunity for transformative change. Key areas include addressing the human capital crisis, generating fiscal space through tax reforms and expenditure savings, fostering a dynamic and open economy, transforming the agriculture sector for climate resilience, and addressing inefficiencies in the energy sector. Bold fiscal reforms could potentially generate over 12% of GDP in new fiscal space, providing resources for human development, infrastructure » Read More…

SUMMARY of the Article “Mass extinction” by Aisha Khan, Dawn [Published on January 2nd, 2024]

The conclusion of the 28th Conference of Parties (COP) session in December 2023 marked progress in climate action but fell short of the urgency required to prevent the anticipated sixth mass extinction. Amidst growing eco-anxiety and challenges in multilateral processes, the article highlights the need for a more individualistic approach to address the threat to life systems. The author contextualizes the brief timeline of human civilization, spanning 200,000 years anatomically, 6,000 years for modern civilization, and the industrial age’s commencement in 1850. Despite scientific and technological advancements, the acceleration of climate change is primarily attributed to greenhouse gas emissions. The narrative shifts towards individual responsibility and suggests a change in perspective to expedite solutions. The key dilemma involves balancing existing lifestyles without compromising quality or altering consumption patterns. COP28’s discussions, particularly Sultan al-Jaber’s controversial statement on fossil fuels, underscore the reluctance to abandon fossil fuel-supported lifestyles. The article emphasizes the need for societies to reconsider current consumption patterns to adopt a low-carbon-footprint lifestyle. Highlighting the significant environmental impact of modern food systems, the author notes that going vegan could » Read More…

SUMMARY of the Article “Tourism numbers,” Editorial, Dawn [Published on January 2nd, 2024]

Gilgit-Baltistan’s tourism potential exhibits promising numbers, with over 11,000 foreign climbers and tourists visiting in 2023, marking the highest figures in the past two decades. Additionally, the UN’s World Tourism Organisation designates Pakistan as the “best performing destination” for the first nine months of 2023. Despite these positive developments, Pakistan struggles to market itself effectively to global tourists. The visa application process, particularly for foreign visitors to Gilgit-Baltistan, is cited as a deterrent, often taking several months to process. This bureaucratic hurdle contrasts with the global trend of countries offering visas on arrival or efficient e-visas. The article highlights the paradoxical nature of Pakistan’s tourism promotion efforts, with campaigns like ‘Salam Pakistan’ juxtaposed against a securitized and suspicious approach towards foreigners. The editorial underscores the need for a swift and transparent visa process, improved » Read More…