Issue 7

Budget Study Centre Issue 7
January 16, 2018


Fortnightly Budget News Alerts

Trump’s growth boast in reach as factories boom, GDP could have topped 4% in best year since 2004

The Times (January 4, 2018)

The American economy is showing signs that it could hit President Trump’s ambitious growth target after a report indicated that factories in the United States had enjoyed their best year since 2004. Manufacturing activity in the world’s largest economy came in well ahead of economists’ expectations last month, a closely watched report showed, suggesting that growth could have surged above 4 per cent in 2017, much faster than previously

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Economic indicators stay positive, LSM, exports witness growth

Business Recorder (January 4, 2018)

ISLAMABAD: Despite challenges, the performance of various sectors of economy showed impressive growth as depicted by different economic growth indicators. During the first five months of the current fiscal year, the exports have witnessed a growth of 10.49 percent over the corresponding period of Fiscal year 2016-17, while during the month of November, the exports increased by 12.35 percent compared to the exports of November

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US aid cut worries economists; souring ties with foreign donors feared

The News by Erum Zaidi (January 4, 2018)

KARACHI: US government’s decision to wean Pakistan off its financial aids may sour the country’s ties with international financial intuitions and could throw a spanner into much-needed foreign inflows, economists said on Wednesday. A former finance minister said the US decision seems to influence the various multilateral agencies/creditors, such as the International Monetary Fund (IMF), World Bank and Asian Development

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Turkey inflation still stubbornly high in December

Business Recorder (January 3, 2018)

ANKARA: Inflation in Turkey eased slightly in December after reaching the highest rate in 14 years the month earlier, but remained stubbornly high at almost 12 percent, in a continued headache for policymakers, according to statistics released Wednesday. Consumer prices rose by 11.92 percent year-on-year in December, the Turkish statistical institute said, down slightly from 12.98 percent in November, which was the highest

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Britain wants financial services included in EU Trade deal-Davis

Times of Malta (January 3, 2018)

Britain wants to include financial services in a trade deal with the European Union that covers a full sweep of economic areas, Brexit minister David Davis said on Tuesday.Davis said that any deal that left finance out would be “cherry picking”, after the EU’s Brexit negotiator Michel Barnier cast doubt on the inclusion of financial services in a free-trade deal. “We are looking at the full sweep of economic cooperation that currently exists and

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FBR on target to achieve annual collection target of Rs 4013 bln this year

Pakistan Observer (January 2, 2018)

ISLAMABAD: Federal Board of Revenue remains on track to achieve annual collection target of Rs 4013 billion. During first half of the current financial year, Federal Board of Revenue has recorded provisional net revenue collection of over Rs. 1722 billion as against Rs. 1466 billion collected during the same period of the previous fiscal year, by recording an increase of around 17.5% over the revenue collected during the

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Inflation spikes 4.6% in Dec 2017, hits 8-months high

The Express Tribune by Shahbaz Rana (January 2, 2018)

ISLAMABAD: For the first time in the past eight months, the inflation rate spiked 4.6%, showing the effect of government’s policies including the increase in prices of petroleum products for end-consumers and levy of regulatory duty. “The impact of government’s decision to devalue the rupee against the US dollar by about 7.2% is also expected to appear after a lag of a couple of months,” said State Bank of Pakistan (SBP) Governor Tariq Bajwa. Measured by the

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Singapore’s economy grew 3.5 percent in 2017: PM Lee

Business Recorder (January 1, 2018)

SINGAPORE: Singapore’s economy grew 3.5 percent in 2017 on the back of improved productivity as well as a pick-up in the global economy, Prime Minister Lee Hsien Loong said on Sunday. Singapore’s trade-reliant economy has enjoyed a boost this year from an improvement in global demand, particularly for electronics products and components such as semiconductors. “Our economy grew by 3.5 percent

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Bond float not enough, Pakistan going to be IMF’s customer again

Express Tribune by Jazib Nelson (January 1, 2018)

ISLAMABAD: Popular view of Pakistan’s economy was quite optimistic at the start of 2017. Positive developments including successful completion of the $6.6-billion International Monetary Fund (IMF) programme, decent progress on China-Pakistan Economic Corridor (CPEC) projects and emerging market status for the Pakistan Stock Exchange (PSX) were behind the optimism. Government officials claimed at almost every

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The making of shadow budget

The News by Mustafa Nazir Ahmad (December 31, 2017)

The preparation of shadow budgets by opposition parties, think tanks and civil society organisations has become a norm in the developed world over the last quarter of a century. These alternative budgets offer analysis and perspective on what the government budget should contain in terms of spending and revenue generation. In short, a shadow budget offers an alternative vision to deal with the macroeconomic challenges

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Hungary’s economy projected to grow by 4.3pc in 2018

Business Recorder (December 28, 2017)

BUDAPEST: Hungary’s economic growth is expected to come in at 4.1 percent this year, and will accelerate to 4.3 percent next year, the Economy Ministry said in a statement on Wednesday. The ministry said that this year’s GDP growth was largely driven by a rise in investments, due to a pick-up in housing construction increasing use of development funds coming from the European Union and capacity expansion by large corporates

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‘Foreign loans compromise sovereignty’ says Rabbani

The DAWN By Parvaiz Ishfaq Rana (December27, 2017)

KARACHI: Senate Chairman Mian Raza Rabbani said on Tuesday foreign loans come with strings as lenders’ lconditions infringe upon national sovereignty. If a nation has a choice, then it should opt for increasing exports by promoting the indigenous industry and making it competitive, he said while addressing the 41st Export Awards ceremony of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). “I’d suggest that if we have a choice

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The fall and fall of Pakistan’s economy in 2017

The Express Tribune by Arsalaan Asif Soomro (December 26, 2017)

Whether this is due to Mr Ishaq Dar being pre-occupied during the year, trying to save himself and his boss from the aftermath of the Panama leaks, or merely because the anticipated growth of imports was foreseen in a naive manner, is a question that is behind us for now. With the grip on currency loosening, the picture alas seems to slowly be moving towards equilibrium. When the currency started slipping in December, there was no “inquiry”

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Govt. asked to announce PFC award without delay.

DAWN (December 25, 2017)

SWABI: The Pakistan Tehreek-i-Insaf-led Khyber Pakhtunkhwa government has been asked to announce the Provincial Finance Commission (PFC) Award 2017-18 under the Local Government Act, 2013, without further delay to give financial responsibility and authority to elected representatives of local bodies. The demand was made by members of Samaji Bahbood Rabita Council (SBRC) and Good Governance District Coalition (GGDC)”

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Venezuela: Economy shrank 16.5% in 2016: report

Express Tribune (December 24, 2017)

WASHINGTON: Venezuela’s economy shrank a massive 16.5% in 2016, according to an official government filing to the US Securities and Exchange Commission (SEC). The oil-rich but impoverished country attributed the collapse to a contraction of 9.9% in the oil sector and 16.1% in the non-oil economy. The 150-page report, received on Thursday by the SEC, also reported inflation at 274.4%, and an unemployment rate of 7.5% in the calendar

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