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COVER STORY

EXPORTS: ECONOMY OF SCALE IS THE KEY

Jan 06 - 12, 2003   
ISSUE # 01  

Pakistan's exports have registered unprecedented growth during the current financial year. However, despite satisfactory growth in overall exports from Pakistan, it is not reflected in the performance of large scale sector which recorded a growth of 3.2 per cent slightly higher than the same period last year. One obvious explanation is that the export growth may lead primarily by small-scale manufacturing or by the undocumented economy. Growth in the undocumented economy also speaks of the lower demand for credit from the banking sector. In the face of the improved economic environment, the weak growth recorded by large scale manufacturing and the lower net credit from banks indicates growth of the undocumented sector

within the economy. The situation calls for immediate attention of the economic managers 

to take corrective measures. It is the point to ponder upon why the large scale manufacturing is not availing the credit facility from the banking sector.

 

 

 

PAKISTAN ECONOMY
The first quarterly report of State Bank of Pakistan provided ample evidences to the critics that economy is on the path of recovery. There are reasons to believe that GDP growth rate will be achieved. The reports also warns that the newly elected government should also abstain from following populist policies.

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KESC
The GoP has agreed to provide funds over Rs 13 billion to the KESC to revamp its infrastructure. The management undertook efforts in certain areas to reduce T&D losses and the performance convinced the planners to allocate fund from the budget. Availability of the fund from budget will not add to financial charges of the utility.

 

 

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