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SUMMARY of the Article “Economic Growth,” by Rashid Amjad, Dawn, December 3rd, 2024:

The article provides an analysis of Pakistan’s current economic trajectory, highlighting signs of stabilization such as the PSX share index surpassing 100,000 points, a stable rupee-dollar exchange rate, and inflation plummeting to 6 percent, aided by global factors like post-Covid economic adjustments and stable oil prices. Despite these optimistic indicators, Rashid Amjad raises critical concerns about whether this stability will translate into sustainable high economic growth or lead to a stagnation trap. Challenges such as the government’s failure to honor commitments like minimum support prices for wheat have exacerbated rural poverty, compounded by subsidy cuts and rising unemployment. The looming risk of recession due to compressed aggregate demand and a potential collapse in the housing market mirrors economic crises seen in other countries like Japan and China. Global uncertainties, including potential trade wars stemming from Donald Trump’s policies, add external pressure. Pakistan remains vulnerable due to its precarious foreign exchange reserves, unmet foreign investment promises, and an over-reliance on debt rollovers. The article critiques Pakistan’s stagnant 3% growth rate, insufficient to address poverty and malnutrition, compared to India’s consistent 7% growth. Emerging sectors like IT and AI show promise but face hurdles due to weak tax compliance and » Read More…

On November 16, 2024, US President Joe Biden and Chinese President Xi Jinping met on the sidelines of which event?
COP29, Azerbaijan
G20 Meeting, Brazil
Asia-Pacific Economic Cooperation Summit, Peru
G7 Summit, Italy
Show Answer…
Correct Answer: Asia-Pacific Economic Cooperation Summit, Peru
» Read More…

SUMMARY of the Article “Hollow Victory,” Dawn Editorial, November 26th, 2024

The recently concluded COP29 summit in Baku left developing nations, like Pakistan, feeling underwhelmed by the global response to the climate crisis. While the agreement on a $300 billion annual climate finance target by 2035 represents progress from the earlier $100 billion commitment, it falls far short of the $1.3 trillion experts estimate is needed to meet the Paris Agreement’s goals. Wealthy nations have shifted the burden to private sector financing and high-emission economies like China and oil-rich states, avoiding their historical responsibility. For Pakistan, facing a staggering $348 billion climate finance gap by 2030, this lack of support undermines its mitigation and adaptation efforts. Despite economic challenges, Pakistan showcased initiatives like Recharge Pakistan and the National Climate Finance Strategy at COP29, reaffirming its commitment to addressing the climate crisis. However, these initiatives remain aspirational without substantial international funding and support. The urgency of the crisis is underscored by predictions that 2024 could become the hottest year on record, with global temperatures potentially rising by 3.1°C by the century’s end, leading to catastrophic consequences. To combat this, wealthy nations must not only fulfill their $300 billion pledge but also streamline fund access by cutting bureaucratic delays. Domestically, Pakistan must adopt » Read More…

SUMMARY of the Article “Crisis of Population Growth,” by Zeba Sathar, Dawn, November 23rd, 2024

Pakistan’s population growth rate of 2.55% (2017-2023) is alarmingly high, making it the fastest in South Asia. Over the past 25 years, the population has increased by 110 million, putting immense pressure on resources and development prospects. The Population Council and UNFPA’s report Pakistan@2050 highlights the consequences of this rapid growth, such as missed economic opportunities, unmanageable urbanization, and heightened unemployment. Had the population growth been lower, Pakistan’s GDP could have been 56% higher, with significantly reduced poverty and maternal mortality rates. By 2050, the population is projected to reach 385 million, further straining already stretched resources. The workforce will grow by 65 million by 2050, requiring 2.6 million additional jobs annually. The report emphasizes the necessity of reducing fertility rates to 2.2 replacement levels by 2030, a goal achieved by regional neighbors like Bangladesh and Iran. Half of pregnancies in Pakistan are unplanned, with millions resulting in abortions and unintended births, underscoring the need for expanded family planning services. Compulsory primary education is also crucial, with 25 million out-of-school children as a significant barrier to progress. Addressing gender inequities and increasing female education and labor force participation are essential for sustainable development. The article urges immediate action to implement policies on fertility reduction and primary education, predicting that such » Read More…

SUMMARY of the Article “IMF’s Concern,” Dawn, November 17th, 2024

The article highlights the IMF’s recent unscheduled discussions with Pakistani authorities on the ongoing $7 billion loan program, which concluded without the usual end-of-mission statement, leaving the public uncertain about the outcomes. The IMF expressed significant concerns over delays in securing $2.5 billion in foreign loans, including a $1.2 billion Saudi oil facility, and a revenue shortfall of Rs190 billion in tax collection for the July-October period. Additionally, the slow progress on the National Fiscal Pact and delays in privatizing state-owned enterprises (SOEs) have raised alarms, as provinces have yet to align their farm and property tax rates with federal standards. These lapses indicate that the government is struggling to meet several structural benchmarks crucial for economic stability. Despite having time before the formal review in February or March, these failures threaten Pakistan’s access to the next $1 billion tranche and erode market confidence. The IMF’s insistence on strict compliance, exemplified by its decision to send an early mission, underscores its skepticism about Pakistan’s » Read More…