THE REAL ESTATE CRAZE

 May 16 - May 22, 2005 
ISSUE # 20 

The real estate sector was booming in Pakistan especially in Islamabad, Lahore, Karachi, Gujranwala, Faisalabad, and Gwadar. All of these cities have their own importance in future growth of the economy. The situation calls for growth in basic infrastructure specially in the areas like energy, shipping, rail, highways, schools, hotels and farm-to-city roads needed priority attention for improving the infrastructure facilities. Despite having enormous potential for growth, the real estate and the construction industry has been sandwiched between the provincial and local government departments due to clash of interests.

POL PRICES
It is often said that the petroleum, oil and lubricant (POL) price movement in Pakistan does not show a trend which matches movement of international prices. Lately it has been observed that when crude oil prices were sky rocketing, the GoP froze domestic prices. Then a declining trend was evident globally, but POL prices were on the rise in the country. There may be various explanations for the disparity but there should be effort to find out the factors having the potential to affect domestic prices of POL.

 

 

TRADE DEFICIT
Pakistan has posted a huge current account deficit during the first nine months of current financial year, which is in sharp contrast with a surplus for the corresponding period of last year. Growing trade deficit is fast turning Pakistan's current account surplus into negative. A huge trade deficit of 3.5 billion dollars during 9-month period has already turned the current account surplus into deficit. According to the details, the country has posted 1.3 billion dollar deficit as against a surplus of two billion dollars. There are apprehensions that the current account deficit may go as high as two billion dollars at the end of current fiscal year because of 5 billion dollars deficit for the full year.

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