rising investment costs

Tanveer Farooq7509

Presented to:Sir Qazi Adnan Hye

Problems◦ Certain problems led to the increase in the

investment costs such as,◦ Hiking of policy rate

When capital goods had started picking up◦ Increase in interest◦ Depreciation of Pakistani rupee◦ Absence of stable interest and exchange rates◦ Tight Monetary policy

Failed to Control inflation or discouraging fiscal deficit

◦ Increase Debt servicing cost

Will Pakistan be a Permanent client of IMF? Enormous cost of fighting militancy. A self-

created problem?◦ Cost of war is amounting to $80 billion

Problems Summarized: Prolonged war Heavy debt Currency printing

Tight monetary policy◦ Foreign reserves have been piled at the cost of

economic development State bank has failed to consider business

opinion on inflation Managing macroeconomic stability through

Foreign capital and financial inflows

The last and the reasonable action for policy makers is to Mobilize Domestic Resources

Improve tax revenue by making tax administration efficient