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Economy: Understanding Pakistan's economy, Criticism/ Policy Flaws -…
Economy: Understanding Pakistan's economy
Command Economy
Fiscal Tools
Taxes
Higher Taxes for increase in revenue
Regressive taxing: Income tax and tax on digital payments
Progressive Tax: Wealth Tax
Government spendings
Monetary tools
Interest rates
High interest rates to control inflation
Business Community is not happy about it, as it hampers there growth
High interest rates were necessary cause otherwise acccelerated growth always results in boom/bust cycles
Growth sparks higher imports → trade deficit widens → reserves fall → exchange rate pressure builds → delayed devaluation → crisis → return to IMF.
Every government repeats the pattern and blames successors for the crash.
Now moving from stabilization period towards growth period, but feeling difficulty in transition
Growth is not possible unless inclusive growth happens at local level
Provide Safety nets
2 more items...
Money Supply
Discount rates
The Uraan Economic Plan is Pakistan's 13th Five-Year Plan (2024-29) launched by Pakistani Prime Minister Shehbaz Sharif on December 31, 2024.
Balance of Payment
Capital Account
IMF
EFF(Extended Fund Facility)
World Bank
Report Released on 24 Septwmber: 2025 The World Bank has said Pakistan’s current development model is inadequate to reduce poverty and inequality
Current Account
Trade deficit when imports surpass exports
To gain Equilibrium get laons or borrow money through Capital Account
Twin Deficit
Fiscal Deficit/ Budget Deficit: When Govt. spend more than revenue
Current Account Deficit
Criticism/ Policy Flaws