rising investment costs
DESCRIPTION
Rising Investment Costs. Tanveer Farooq 7509 Presented to:Sir Qazi Adnan Hye. What the case is about?. 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 - PowerPoint PPT PresentationTRANSCRIPT
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