Profit Editorials articles

Back to the deficits

If November’s 10 per cent year-on-year decline in exports and 19 per cent surge in imports fail to sound alarm bells in the finance ministry, the middle and lower income groups should

Timely aid from Beijing

China has often proved an all-weather friend, especially when business with the traditional patron has turned cold-ish. So never mind the expected stiffness in US aid flows. Part of the disappointment will

Indian troubles

It seems Southeast Asia is headed for a particularly cold financial winter this time around. Pakistan’s tale of stagflation and the government’s inability to stem investor outflow is echoed in a much

Debt, bubble and austerity

Rising external and internal debt puts the government in a precarious position. The problem is compounded because a) borrowed amounts are increasingly channeled towards non-development expenditure, b) the government’s own revenue generation

The SBP dilemma

The central bank contradicts itself. First it explains its (obvious) “dilemma” – excessive government borrowing has compromised advances to the private sector. Then it expects the incredible – the 200 percentage point

The HBL verdict

Going by the trend, a Supreme Court verdict that doesn’t derail a contested privatisation exercise sets a precedent in itself. Yet there are a number of features in the HBL decision that

The PSM example

The Rs6 billion bailout package for Pakistan Steel Mills violates one too many essential economic principles to warrant any appreciation – throws good money after bad, encourages moral hazard, rewards incompetence, sets

KESC problems

Something on the lines of 50,000 industrialists refusing bill payments to KESC was bound to happen sooner or later. That they’d rather deposit due amounts elsewhere to protest power shortages shows they

The CNG ban

The proposed ban on CNG kits is yet another example of unplanned, ad hoc policy making, reflecting a disturbing gap between on ground reality and the government’s understanding of some of the

On the same team?

News reports highlighting the communication breakdown between ministries of commerce and textile, that too regarding the crucial MFN debate, are worrying. And it’s no less unsettling that the initiative with India is

Politics and markets

It is common knowledge in the complicated world of capital markets that while fundamentals do matter, the marketplace acts primarily on sentiment. Seen in this backdrop, periodic ‘talk up’ of market sentiment