policy notes

Federal Budget 2020-21

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Federal Budget 2020-21

Federal budget speech 2020-21 notes that the expected recession due to Covid-19 calls for an expansionary fiscal policy. An expansionary fiscal policy aims for greater public spending, which drives up aggregate demand, generating employment opportunities and economic activity. Having mentioned the need for an expansionary fiscal policy without exposure to unsustainable deficit financing, the federal minister presenting the budget speech went on to present a budget with a stated total federal expenditure of Rs. 7,137 B1 as against the revised budget estimates of Rs. 8345.3 billion incurred in FY 2020. As for sustainable debt financing, this year’s budget entails further debt assumption, as the primary balance is still in the negative.

To read more, click the pdf given below:

Federal Budget 2020-21

Prime Policy Note  on Federal budget

Petrol Crisis in Pakistan

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Petrol prices in Pakistan fluctuate every month as the Oil Companies Advisory Committee recommends prices following international oil prices. Pakistan spent $13.93 billion dollars on imports classified under the petroleum group in FY 2019. Approximately 57% of petroleum oil is used for transport.

As per a statement by a spokesperson of Shell Pakistan, an abrupt increase in petroleum demand was one reason behind the depletion of their stocks. However, OGRA contends that there was no shortage of petrol in the country. As per the federal cabinet, OMCs pocketed windfall gains when oil prices were high but were reluctant to bear losses when prices went down.

To read more, download the PRIME note given below:

Petrol Crisis in Pakistan

Policy Note on petrol crises in pakistan

PM Construction Package

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With the increasing population of the country, the need for housing units has also been increasing. While the current capacity of developers in the country is to deliver only 150,000 housing units per year, the actual demand stands at 350,000 new housing units per year. This leaves a shortfall of 200,000 units each year. Given this demand and sectoral linkages of the construction sector, the Prime Minister Imran Khan announced a major package on the 10th July 2020, which has been warmly welcomed by all concerned stakeholders in the industry.

To Read the policy note, click on the PDF file given below:

PM Construction Package

prime note on PM construction package

Price Controls: 10 Myths and Facts

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Advocates of free markets, not that they are many out there, usually have to face questions and criticism from various quarters. In the times of so-called market failures and global recessions, it is a daunting exercise to confront these questions as they are often couched in concerns for welfare, economic justice, and populism. 

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Dissecting Pakistan’s lead in Service Exports

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As per World Trade Organization’s latest statistics, global trade in services witnessed an average decline of 24 percent in the third quarter of 2020. Out of the 39 countries reviewed, approximately 90 percent experienced contraction in service exports whilst 10 percent observed a positive growth.

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Policy Research Institute of Market Economy

آزاد معیشت – خوشحال پاکستان