Rising Investment Costs
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Transcript of Rising Investment Costs
![Page 1: Rising Investment Costs](https://reader038.fdocuments.net/reader038/viewer/2022103006/5681349b550346895d9b9286/html5/thumbnails/1.jpg)
Tanveer Farooq7509
Presented to:Sir Qazi Adnan Hye
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Problems◦ Certain problems led to the increase in the
investment costs such as,◦ Hiking of policy rate
When capital goods had started picking up◦ Increase in interest◦ Depreciation of Pakistani rupee◦ Absence of stable interest and exchange rates◦ Tight Monetary policy
Failed to Control inflation or discouraging fiscal deficit
◦ Increase Debt servicing cost
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Will Pakistan be a Permanent client of IMF? Enormous cost of fighting militancy. A self-
created problem?◦ Cost of war is amounting to $80 billion
Problems Summarized: Prolonged war Heavy debt Currency printing
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Tight monetary policy◦ Foreign reserves have been piled at the cost of
economic development State bank has failed to consider business
opinion on inflation Managing macroeconomic stability through
Foreign capital and financial inflows
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The last and the reasonable action for policy makers is to Mobilize Domestic Resources
Improve tax revenue by making tax administration efficient