The Pakistan Development Review
Not a member yet
2465 research outputs found
Sort by
Corporate Governance and Performance of Financial Institutions in Pakistan: A Comparison between Conventional and Islamic Banks in Pakistan
Get PDFCorporate Governance refers to the way an organisation is
directed, administrated or controlled. It includes the set of rules and
regulations that affect the manager’s decision and contribute to the way
company is perceived by the current and potential stakeholders. The
corporate governance structure specifies the distribution of rights and
responsibilities among different participants in the corporation such
as; boards, managers, shareholders and other stakeholders and spells out
the rules and procedures and also decision-making assistance on
corporate affairs. By doing this, it also provides the structure through
which the company’s objectives are set and the means of obtaining those
objectives and monitoring performance. Corporate governance may be the
ways of bringing the interests of investors and managers into line and
ensuring that firms are run for the benefit of investors
Macroeconomic Management in a Decentralised Set-up (PANEL DISCUSSION-III)
No full textThe issue of macroeconomic management in a decentralised
set-up is a big question. My part of discussion will get more down into
the nuts and bolts and as you see I will unfortunately ask a lot more
questions. I think that it is very important that all parties have begin
to equip themselves with relatively detailed knowledge of what is likely
to occur in the shape and structure of government processes as the
devolution of authority in 18th amendment begins to take place. It
occurs to me the development stakeholders or the government of Pakistan
and the provincial ministries of finance, the Planning Commission and
the CCI and potentially others even including the international
community. I think these bodes need to know how this devolution can
actually occur. What are the actions necessary to develop a transparent
budget and an auditable budget, procurements in expenditure processes at
the provincial level that were administrated by the federal level in
order to avoid macroeconomic management to continue to occur in
decentralised set-up. The current arrangement provides as far as I know
bulk of resources to be collected and controlled with the federal level.
Also there is a significant share of responsibility currently with the
federal government. These distributional arrangements will necessarily
change as the budgetary regulatory framework for the 18th amendment
becomes agreed upon. This regulatory framework is not really in place
yet. A regulatory framework would need to be enacted and implemented.
This means to me at least that an assessment of pre-18th amendment
situation is needed to provide a base line to understand how the new
structure will have to be reformed. An assessment perhaps should be done
with a review of existing policies or to sort out what were the initial
conditions going into 18th amendment. I think as federal and provincial
governments are moving towards implementation, at both budgetary and
operational levels, a few questions may be needed to be asked. One is
how will the new responsibilities assigned to the provinces be financed?
What will happen to federal government staff currently engaged in doing
all the functions will no longer be with the federal government. How
will the human and operational capacity at the provincial government
level be developed with a particular emphasis on budgeting expertise and
expenditure expertise. If there is going to be control and management at
macro level, then there is going to be a tremendous amount of capacity
required at the budgeting and expenditure level in the provinces. I
think an assessment of the provincial capacity is a good
idea
The Effect of Corruption and Governance on Tax Revenues
Get PDFDeveloping countries are typically unable to generate
sufficient amount of revenue from taxation because these countries face
a number of institutional problems in the process of revenue generation.
One of the main problems is corruption in tax administration. The two
important components of revenue generation are tax administration and
tax system reforms [Brondolo, et al. (2008)]. The main objective of
these is to increase the efficiency of tax administrations, specifically
by reducing corruption and tax evasion. The second main problem of low
revenue generation is political instabilities in developing countries.
One of the important characteristics of political instability is
unstable and governments and, hence, incoherent policy framework, which
hinder in the process of long-term reforms in the system. The quality of
governance as a whole is also relevant in this context. It is widely
agreed that the presence of tax evasion and corruption of public
officials is a social phenomenon that can significantly reduce tax
revenue and seriously hurt economic growth and development
The Causality between Revenues and Expenditure of the Federal and Provincial Governments of Pakistan
Get PDFLarge fiscal deficits and a growing debt burden have been a
key element of the structural problems faced by the economy of Pakistan.
During the last three years, for example, the budget deficit has
averaged almost 6 percent of the GDP and the public debt has approached
the level of 60 percent of the GDP. Targets agreed with IMF have been
seriously violated and the SBA with the Fund has floundered because of
the inability to control the fiscal deficit. There is a growing
perception that one of the root causes of inflation is the large
borrowing from the Central Bank to finance the deficit. This has
resulted in a popular demand for cutting down of unproductive
expenditure and observing austerity along with implementation of a
strong programme of reforms to raise the low tax to GDP ratio of the
country by broad-basing the tax system and eliminating exemptions. The
fundamental question is whether measures at reducing the fiscal deficit
will have a, more or less, permanent impact. If an increase in tax
revenue is accompanied subsequently by a rise in expenditure then the
impact on the deficit is likely to be temporary or limited in character.
Alternatively, if a cut in expenditure leads to a slackening of the
fiscal effort then the gains are also not lasting in nature
Ejaz Ghani (ed.). The Poor Half Billion in South Asia: What is Holding Back Lagging Regions? New Delhi: Oxford University Press. 2010. Hardbound. 339 pages. Rs 795.00.
Get PDFSouth Asia portrays an interesting paradox; it is the second
fastest growing region in the world, yet the region has high
concentration of poverty and is home to dismal social outcomes,
conflicts and gender disparities. South Asia in fact is a land of two
highly diverse regions; ‘Asia Shinning’ and ‘Asia Suffering’. The
disparity between the two areas as lagging and leading regions is so
sharp that these seem to be anchored in two different centuries. The
richer region has experienced stupendous growth, due to its economic
geography, globalisation and growth-promoting institutions while the
limited growth potential of the poorer region has been further
compounded by the weak capacity of the state to deliver social services.
The question then is what should be done to address the gigantic task of
poverty alleviation and take up the challenges posed by the
concentration of poverty. What should be done and what the public policy
can do? With a focus on this contrast as seen in Bangladesh, India,
Pakistan, and Sri Lanka, the essays in this volume put into perspective
the colossal task of poverty eradication and inclusive growth. The
research studies included in this book not only provide fresh
perspective on spatial disparities but also offer innovative, short-term
as well as long-term, policy solutions to escape the poverty
trap
An Analysis of Energy Security Using the Partial Equilibrium Model: The Case of Pakistan
Get PDFRestricting energy imports and total primary energy supply are
the two direct policy options used for the improvement of energy
security. Restricting energy imports directly reduce energy import
dependency that leads to diversification of energy resources and
ultimately enhances energy security while total energy supply reduction
affects the energy security through the diversification of efficient
technology mix and energy resources supply mix. As energy is a vital
element for sustained economic growth and development, therefore energy
consumption is used as a basic indicator of people living standards. Due
to technological and industrial development, the demand of energy in
Pakistan is increasing more than the total primary energy supply;
therefore, it is confronting the severe energy deficit today. So there
should be a serious concern for the government about the energy security
and should take enough actions for the development of indigenous
alternative and renewable energy resources
Francisco Gutierrez and Gerd Schonwalder (eds.) Economic Liberalisation and Political Violence—Utopia or Dystopia? 2010. International Development Research Centre Canada (IDRC). Canada: Pluto Press. 355 pages. US$35.00.
Get PDFNo debate is as engaging in the twenty-first century, as the
one surrounding the phenomenon of globalisation. Economists, political
scientists public policy experts, and specialists from a range of
diverse disciplines are attracted to analyse this phenomenon and apply
it to the world around them. The analysts are generally divided in two
camps—those who praise globalisation as an evolutionary process leading
to peace and prosperity, and those for whom globalisation is a curse
instigating violence and conflict by undermining the role of the State
and adversely affecting democracy
Taylor Rule and the Macroeconomic Performance in Pakistan
Get PDFA near-consensus position in modern macroeconomics is that
policy rules have greater advantage over discretion in improving
economic performance. For developing countries in particular, simple
instrument rules appear to be feasible options as pre-requisites since
more sophisticated targeting rules are generally lacking. Using
Pakistan’s data, this study has attempted to estimate the Taylor rule
and use it as monetary policy strategy to simulate the economy. Our
results indicate that the State Bank of Pakistan (SBP) has not been
following the Taylor rule. In fact, the actual policy has been an
extreme deviation from it. On the other hand, counterfactual simulation
confirms that macroeconomic performance could have been better in terms
of stability of inflation and output, had the Taylor rule been adopted
as monetary policy strategy. The study also establishes that further
gains are possible if the parameter values of the rule are slightly
modified. JEL classification: E47, E31, E52 Keywords: Taylor Rule,
Macroeconomic Performance, Counterfactual Simulatio
Rehabilitating Agriculture and Promoting Food Security After the 2010 Pakistan Floods: Insights from the South Asian Experience
Get PDFThe 2010 floods in Pakistan had a devastating effect on the
Pakistani population. This paper summarises recovery experiences from
previous natural disasters in South Asia, including the 2005 earthquake
in Pakistan and the 1998 flood in Bangladesh, and suggests several
lessons relevant for recovery efforts following the 2010 Pakistan flood.
First, market and trade policies should maintain adequate price
incentives so that private trade and imports can contribute to
postdisaster recovery. Second, a strong institutional framework is
needed to coordinate the large-scale disaster response. Third, recovery
efforts should also include support for livelihood security and
restoration, ensuring inclusion of the stakeholders. Fourth, restoring
and upgrading infrastructure facilities can lead to enhanced flood
resistance as well as a reduction in future disaster loss. Two
alternative institutions may be possible vehicles for
poverty-alleviation—the Pakistan Poverty Alleviation Fund (PPAF) and the
Benazir Income Support Programme (BISP). To address future disasters,
however, it is important to establish and strengthen disaster response
capability, including applying lessons learned from the relief and
rehabilitation response to the 2010 floods
Reformed GST: Challenges and Opportunities (PANEL DISCUSSION-II)
No full textFirstly I would like to appreciate the views and compliments.
I was mentioning to Mr Idrees Khawaja that perhaps they could have
chosen a much better representative for the private sector because my
view is distinctly in the minority in case of RGST. I will just share
with you where the private sector stands on the issue of RGST, what
their opinion is and then I will give you my own stance on the subject
as well as justification on the same. As you would know from newspapers
and other media, the private sector is strongly against the imposition
of RGST. The vast majority of chambers, which represent the bulk of
Pakistan’s private sector, have been vociferous in the opposition of
RGST. I must mention here that in addition to my responsibilities at
Engro, I also serve in the role of Chairman of Pakistan Business
Council, which was created a few years ago. Pakistan Business Council
comprises of largest business groups of Pakistan. Every single large
business group of Pakistan is its member, including some of the key
multinationals operating in Pakistan. Pakistan Business Council formally
supported the RGST, even during its hearing in the National Assembly
Finance Committee. Part of the difference that you see here can be
explained in terms which would be flattering to us. We have been part of
the industry since a very long time but we realise where the world is
headed, and understand that a modern country cannot progress and cannot
be run effectively with a tax-to-GDP ratio which is in single digit. But
since the private sector is not significantly represented here, I think
it is only fair that I try to bring forth where some of their
apprehensions come from. We at large businesses have management systems
and teams who are sophisticated enough to deal with complex systems. We
have the necessary resources which enable us to engage the most
expensive lawyers in Pakistan, and fight with the FBR when we see
corruption or unfair practices being carried out. We can also raise
issues that we face in front of the highest authority in the country.
The vast majority of the Pakistani businessmen are small traders or
small manufacturers. They do not have the systems and resources like
large companies. Moreover, fact of the matter is that the tax machinery
in Pakistan is both incompetent and corrupt. Therefore, it is a very
legitimate concern on part of the business community that the RGST will
make their lives difficult, more than the way economic theory portrays
it to be. This is because there are certain realities that have to be
looked at