Pakistan‘s fiscal balance is currently challenged on account of two key issues namely — low capacity of the state to raise public sector‘s revenues and inability to cut down government expenditures. With a growing debt liability it is important to note that the additional costs of debt servicing will also continue to be a burden on the Pakistan economy in terms of pressures arising from higher interest rates, overvalued exchange
rate and continuous upward pressure on consumer prices.
This issue is exacerbated by the low economic growth levels seen in Pakistan since 2007 (Box 1). The national income in the country has not even grown at a rate which can absorb the growing number of labour force in the country. This impacts the budget as the low levels of output imply depressed revenue collection and in turn reduced fiscal space to fund government‘s current and development expenditures. With an on-going IMF programme, Pakistan has committed to keep its deficit under check and on several occasions since 2007 it is the development expenditure on infrastructure and social sectors that faces a cut in order to meet the deficit targets set with the IMF.
Unlike the 1980s and 1990s Pakistan has financed the recent fiscal deficit relatively more through domestic sources of borrowing. The share of external borrowing has been on a decline. However, this has implications for the domestic financial sector. The loanable funds that were supposed to be available for the private sector for production and trade activities were acquired from the banking sector by the government. In fact the commercial banks found lending to the government relatively less risky and remained averse to lending capital to the private sector. The small and medium enterprises were particularly hit hard due to the difficulties in acquiring funds for this working capital.
Examining the implications of recent important developments, the primary aim of this book is to bridge the gaps in existing literature on India-Pakistan economic engagement and to examine various aspects of the trade normalization process.
The book includes familiar themes of India-Pakistan bilateral trade in goods and services, providing new insights into the potential for trade and the challenges involved in realizing it. The respective chapters examine the current trade trends and identify the possible sectors for bilateral FDI flows between the two countries, which could help forge deeper economic ties between them. In light of India’s changed investment policy, this analysis is pertinent for investors and policy-makers alike.
The book also includes chapters on a variety of unconventional subjects, such as estimating the levels of informal trade, an analysis of a trade perception survey, and identifying trade potential using a CGE modeling approach. Further, a number of sectors have been identified for in-depth analysis, including sports goods, healthcare and energy. These sector-based analyses reflect the gap between current levels of trade in the selected industries and the possible trade potential. The studies identify key tradable commodities in the health and sports industries, as well as opportunities for trading in energy. The book thus provides readers with a deep understanding of the process of normalizing economic relations and enhancing bilateral trade at the micro and macro levels, on the basis of which the authors subsequently provide recommendations for policymakers.
Planning Comission Nepal- 2013
The Poverty-Environment Initiative (PEI) is a UNEP/UNDP programme. PEI in
Nepal supports poverty reduction and inclusive development by integrating propoor climate and environmental concerns
into development planning and economic
decision making. The PEI is not designed as
a stand-alone project as such but rather it
aims to provide a programmatic framework
for targeted support to national and local
level planning, budgetary and economic
decision making processes through ongoing
UNDP supported programmes, in particular,
Strengthening National Planning and
Monitoring Capacity of NPC (SNPMC-NPC)
and the Local Government Community
Development Programme (LGCDP). At the
national level, the PEI helps strengthen the
NPC’s capacity to integrate environmental
concerns of poor women and men into
planning, budgeting, and economic decision at
national and local level. Similarly, at the local
government level, it strengthens capacity of
local governance actors and civil society to
integrate environmental concerns of poor
women and men into planning, budgeting,
monitoring, and evaluation at local level by
providing technical support to the Ministry
of Federal Affairs and Local Development
(MoFALD), and District Development
Committees (DDCs) and Village Development
Committees (VDCs). The PEI Programme
Framework complements the existing project
documents of the above two projects, which
include the stipulated PEI activities in their
respective Project Annual Work Plans (AWPs).
The PEI in Nepal began from February 2010
and ends in December 201
1. Scale of finance that needs to be mobilized
2. Mechanisms available
3. Long term signals and drivers of investment
4. Innovative mechanisms for financing Low Carbon Societies?
In 1999, the World Bank launched the Prototype Carbon Fund (PCF), a closed U.S. $180 m mutual fund with private and public participants aimed at purchasing project-based greenhouse gases (GHG) emission reductions (ERs) under the Joint Implementation (JI) and Clean Development Mechanism (CDM) of the Kyoto Protocol. The objectives of the PCF were to pioneer these mechanisms—the rules of which were still to be developed at the time—and to disseminate the lessons learned, so as to demonstrate that JI and CDM could constitute credible and cost-effective ways of mitigating GHG emissions while contributing to sustainable development, and so as to foster the development of the carbon market.
The first part of this program is now well under way. As of the end of 2002, the PCF has indeed signed terms sheets for fifteen projects likely to be validated under JI and the CDM, representing purchases of 10.7 million tons of CO2e1 of ERs for $38.6 m. The aim of the present note is to examine how the PCF has performed on the second part of its mandate, by systematically reviewing the impact of the knowledge these projects have generated. We first detail the role of the PCF in demonstrating that CDM and JI transactions can be beneficial to both the buyer and the seller of ERs and can remain environmentally secure at the same time. Next, we examine how the PCF has contributed to the development of the carbon market. We then discuss the PCF role in empowering developing countries and economies in transitions for future climate negotiations. In conclusion, we come back to the rationale for the World Bank to host this instrument.
This article examines the governance of international carbon offsets, analyzing the political economy of the origins and governance of offsets. We examine how the governance structures of the Kyoto Protocol’s Clean Development Mechanism and unregulated voluntary carbon offsets differ in regulation and in complexity of the chain that links consumers and reducers of carbon, with specific consequences for carbon reductions, development, and the ability to provide “accumulation by de-carbonization.” We show how carbon offsets represent capital-accumulation strategies that devolve governance over the atmosphere to supranational and non-state actors and to the market.
While discussions about global sustainability challenges abound, the financial risks that they incur, albeit important, have received less attention. We suggest that corporate risk assessments should include sustainability-related aspects, especially with relation to the natural environment, and encompass the flux of critical materials within a company's value chain. Such a comprehensive risk assessment takes into account input- as well as output-related factors. With this paper, we focus on the flux of carbon and define carbon constraints that emerge due to the disposition of fossil fuels in the input dimension and due to direct and indirect climate change effects in the output dimension. We review the literature regarding the financial consequences of carbon constraints on the macroeconomic, sector, and company level. We conclude that: a) financial consequences seem to be asymmetrically distributed between and within sectors, b) the individual risk exposure of companies depends on the intensity of and dependency on carbon-based materials and energy, and c) financial markets have only started to incorporate these aspects in their valuations. This paper ends with recommendations on how to incorporate our results in an integrated carbon risk management framework.
We propose measuring vulnerability of selected outcome variables of concern (e.g. agricultural yield) to identified stressors (e.g. climate change) as a function of the state of the variables of concern relative to a threshold of damage, the sensitivity of the variables to the stressors, and the magnitude and frequency of the stressors to which the system is exposed. In addition, we provide a framework for assessing the extent adaptive capacity can reduce vulnerable conditions. We illustrate the utility of this approach by evaluating the vulnerability of wheat yields to climate change and market fluctuations in the Yaqui Valley, Mexico.
The importance of cities in climate policy stems from the simple reality that they house the majority of the world’s population, two-thirds of world energy use and over 70% of global energy use emissions. At the international level, global carbon markets have become an important new source of financing for mitigation projects and programmes. Yet to date, the participation of urban authorities and of urban mitigation projects in the global carbon market remains extremely limited. The under-representation of urban carbon projects can be linked both to the difficulties to implement urban mitigation projects and to the difficulties for cities to access the carbon market. This paper reviews 10 in–depth case studies of urban projects proposed and operating within the realm of Joint Implementation (JI) and the Clean Development Mechanism (CDM) of the Kyoto Protocol. It explores the drivers of success for projects, examining in particular: types of projects that have been successful and their profitability; leadership and other roles of various actors in project initiation development and operation (i.e. local, regional and national governments as well as international, private sector or other non-governmental organisations); the role of local co-benefits; and project financial structure and risk management approaches. This paper also considers how these lessons learned may inform decisions in the future about how to best tap the potential for carbon markets to offer increased levels of financial support for urban mitigation projects or programmes.
Trade Facilitation through Economic Corridors in South Asia: The Pakistan Perspective
Pakistan is reforming its public-sector enterprises dealing with nationwide connectivity, developing a National Trade Corridor (NTC), and opening up the transport and communication sectors to foreign direct investment (FDI). Linking Pakistan to Central Asia, and South Asia through road and rail networks is high on the government’s agenda. To facilitate connectivity, a $9-billion program has been initiated for the NTC, which is expected to be completed in the next few years, but may take longer due to fiscal constraints. This substantial networking is intended to facilitate connectivity with Pakistan’s neighboring countries, and better integrate the urban and rural economies, small and medium enterprises (SMEs), and urban wholesale, retail, and warehousing sectors with port cities.