Pakistan’s Export Performance (2017)

01/05/2021by PRIME Institute PRIME Institute No Comments

Pakistan’s Export Performance (2017)

The Business Climate Review sums up important developments spanning the entire federal government economic governance over the previous month. It discusses possible consequences of decisions, policies, and regulations announced by the federal cabinet, regulators and Federal Board of Revenue for the business climate of Pakistan. The analysis is based on the idea that economic freedom is good for the business climate and any law that increases arbitrariness, red-tape, and government involvement is counterproductive. Also, we believe that the government should not choose winners and losers by legalizing exemptions or favours.

Chinese investment in Pakistan (2017)

01/05/2021by PRIME Institute PRIME Institute No Comments

Chinese investment in Pakistan (2017)

While many laud the government for taking the initiative of the China-Pakistan Economic Corridor (CPEC), some remain cautious of its possible drawbacks for Pakistan. What is important is to analyze what real impact Chinese investment has on our economy – both positive and negative. This month’s issue shares the details of CPEC and highlights its implications for Pakistan.
In my commentary, I share with you the case of politicization of the credit market today where politically connected firms have better access to credit but worse is the fact that the federal government crowds out private sector, dominating 70% of the credit market.

Trade liberalization and economic growth (2014)

30/04/2021by PRIME Institute PRIME Institute No Comments

Trade liberalization and economic growth (2014)

This study empirically analyses the impact of trade liberalization on economic prosperity in selected SAARC countries. To probe the nature of relationships between trade liberalization and economic prosperity especially in less develop countries, research carried out across five SAARC member countries i.e. Pakistan, India, Nepal, Bangladesh and Sri Lanka. The study demonstrate that trade liberalization is conducive for economic prosperity in selected SAARC countries.

CPEC: A primer (2015)

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CPEC: A primer (2015)

This report “China Pakistan Economic Corridor: A Primer” brings together, for the first time in Pakistan, facts, policies, perceptions and implementation status at one place about the most important business deal for the country. The report provides a broad overview of economic significance of economic corridors, identifies parameters of their success, highlights salient features of the institutional and legal framework that governs CPEC, identifies business opportunities alongside the route, highlights concerns from Pakistan’s private sector, updates on the implementation status of CPEC and suggests next steps.

Business within boundaries (2015)

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This research report brings forth facts about the importance of Economic Zones (EZs) and discusses the factors that led to their success. EZs have seen a tremendous growth in numbers since 1970’s, and they are now the preferred mode of industrial clustering, especially in the form of Special Economic Zones (SEZ). This has come about due to various advantages that they tend to confer in terms of industrial development. For example, they offer economies of scale in production and costs, act as incubators for new technological developments, spur new research and tend to have positive spillover effects. In the long term, factors like continued coordination and links with research organizations and academia help sustain and improve the performance of EZs.

Weaving advantage in the textile sector (2015)

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Weaving advantage in the textile sector (2015)

PRIME Analytical Reports-Unlocking Business Potential for Growth-are independent and evidence backed studies on the dynamics of business environment in Pakistan. These monthly reports are prepared to improve our understanding of business and policy challenges faced by the country’s private sector and to help it steer on the path of growth.

Engine of growth (2016)

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Engine of growth (2016)

Industrial growth has been inconsistent in Pakistan. It has gone from 11 percent on average in 1960s to as low as 3 percent on average during the first half of 2010s. These aggregate numbers masks considerable inter-decadal volatility in industrial growth. Despite such trends, industrial sector remains an important correlate of economic growth. The GDP growth rate for the FY2015-16 was 4.71 percent despite a negative growth rate of 0.19 for the agriculture sector. This rather impressive growth rate in GDP was propelled mainly by 6.58 percent growth in industrial sector.

Rising middle class (2015)

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Rising middle class (2015)

The world is in the phase of a major expansion vis-à-vis increase in the middle class population, particularly in Asia. According to research, global middle class is projected to grow from under two billion consumers today to nearly five billion within two decades. The rising middle classes are considered important key driver of growth given their high income elasticity especially for durable goods and services. Hence, increase in income of middle class leads to a higher level of consumption. Therefore, the world economy can be expected to increasingly rely on the middle classes as key sources of global demand.

Pakistan’s pharmaceuticals industry (2017)

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Pakistan’s pharmaceuticals industry (2017)

The 17 Sustainable Development Goals (SDGs), adopted by 194 member countries of UN in 2015, are a roadmap for future human development. One of the pillars of SDGs is health, covered under SDG 3. As defined by the World Health Organization (WHO), this goal envisions ensuring promotion of healthy lives and well being for people of all ages. It is further sub-divided into 13 goals. The WHO also considers other SDGs to be closely linked to SDG 3 as they are directly related to health or will indirectly affect health outcomes. Health related targets are divided into
categories like Mortality (infant, child and maternal), Non-communicable diseases, Mental health, Malnutrition, Vaccine coverage, etc.

EU (revision of) Minimum Residue Level: Potential Effects on South and Southeast Asia (S&SEA) Exporting Micro-Small and Medium Enterprises (MSMEs)

30/04/2021by PRIME Institute PRIME Institute No Comments

This country note examines the responses of public and private sector stakeholder to an increase in maximum residue limits (MRL) on agricultural products imposed by the EU. MRL indicates the permissible limit of traces of pesticides left on agricultural products which are intended for food or animal feed. These limits are fixed and regulated by the European Commission. These MRL were revised upwards in January 2018. The revision affected a wide range of product groups comprising citrus fruits, tree nuts, pome fruits, stone fruits, berries and small fruits, cereals, spices, vegetables and sugar plant.

Agricultural products’ exports: Sanitary & PhytoSanitary barriers faced by exporters in Pakistan

30/04/2021by PRIME Institute PRIME Institute No Comments

Agriculture is the backbone of Pakistan’s economy. It contributes about 24 per cent of Gross Domestic Product (GDP) and accounts for half of the employed labour force. It is also the largest source of foreign exchange earnings. The importance of agriculture in terms of its contribution to Pakistan’s economy is overwhelming. In fact, the share of agriculture in Pakistan’s GDP is significantly higher than other countries in South Asia.

RCEP: An Opportunity to Increase Pakistan’s Trade & Investment Potential

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RCEP: Opportunity to increase Pakistan’s Trade & Investment

PRIME’s latest report timely informs of a window of opportunity – the Regional Comprehensive Economic Partnership (RCEP) – offering immense trade and investment potential. RCEP links 15 Asia Pacific countries (accounting for 30% of the global GDP) through a Free Trade Agreement (FTA). The report establishes a strong case for Pakistan’s accession to the RCEP with logical arguments, grounded in the incumbent government’s mandate