Expo 2020 (in 2021) I Macro Pakistani Bite # 64
Expo 2020 (in 2021)
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Good Evening!
As the Dubai Expo 2020 opens its doors to the world today, so does the Pakistan Pavilion, which looks stunning, quite frankly. The exhibit aims to showcase Pakistan’s beauty through gorgeous landscapes, as well as the religious and ethnic diversity of its people. First glimpses suggest that it does a great job of capturing these themes. What is up for debate, however, is whether the Expo will help Pakistan secure any meaningful financial investment.
With an estimated 25 million visitors expected at the Expo, there will definitely be a lot of scope for Pakistan to market itself as an attractive proposition for foreign investment and further bilateral trade relations. That is what the Ministry of Commerce is hoping for as well, with institutions such as Naya Pakistan Housing and Development Authority, Ravi Urban Development Authority, and the Central Business District, Walton Lahore among those prominently featured at the Pakistan Pavilion.
However, there is a reason why even PM Khan was initially not willing to spend a huge amount on Pakistan’s presence at the Expo. Which is that, for all of the glitz and slickness of the Pakistan Pavilion, it cannot provide an answer for some of the most prominent issues holding back foreign investment in Pakistan—inconsistent government policies (as covered in last week’s newsletter), irregular gas and electricity supplies, a depreciating rupee, and in case of litigation – a time consuming and arbitrary judicial branch.
If any of our readers will be attending the Dubai Expo, we’d love to hear your thoughts on the Pakistan Pavilion and the Expo as a whole.
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WEEKLY DATA WATCH
KSE-100 fell marginally this week, as the US Senate debated a bill seeking to impose sanctions on the Afghan Taliban, which could extend to Pakistan. PKR depreciated further this week, due to record growth in imports. Local gold prices rose slightly again this week, with wedding season drawing closer.
The annual change in Sensitive Price Index fell to 12.97% vs. 13.88% last week. The poorest of the country (Q1) continue to bear the brunt of increased prices, with a change of 15.00% vs. 12.82% for Q5. On a weekly basis, prices fell for all quintiles by 0.10%.
Increase in prices of Potatoes (+1.73) and Milk (+0.04%) contributed to weekly inflation. LPG (+2.27%) also contributed to rising prices this week. A fall in the price of Onions (-6.75%), Tomatoes (-12.57%) and Wheat (-2.33%) helped moderate inflation this week.
What Else We’re Reading (Local)
As the dollar hits a historic high of PKR 170 in the interbank market, ratings agency Fitch predicts the dollar to reach PKR 180 in 2022. (Dawn)
National Foods has had a good year, raking in record profits in 2021. (Profit)
What Else We’re Reading (International)
Air India is finally being privatised, with Tata reportedly the winning bidder. The state-owned airline hasn’t turned a profit since 2007, sound familiar? (Bloomberg)
Tired of the same old options, young voters in the German elections turned their backs on the historic centre-left (SPD) and centre-right (CDU) parties. (WSJ)
About Us Macro Pakistani is a data driven research platform that aims to provide a basic understanding of Pakistan’s economy. If you have an interest in contemporary news but are currently overburdened with sensationalism and specialized vocabulary, we are the platform for you.
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