International Development Law Organization on Davos

Common economic agenda vital for the region – Cabraal

Hiran H. SENEWIRATNE

The South Asian region has to work for a common economic framework/model fitting to each country in the region to achieve a sustainable economic growth in the long term perspective, the Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal said.

“We are the people creating our society, therefore we have to find our strategies for the best interest of the future generation in the next coming decades,” addressing the SAARC Finance Governors’ Symposium and Inaugural International Research Conference held at Central Bank said.

The event was organised by the Central Bank and Governors and its officials participated from all SAARC member countries.

He said the South Asia known to be quiet region at one time, but during the last few years this region took a new stunt achieving a high growth momentum especially India, Sri Lanka and Maldives.

Pakistan – The coming economic tsunami

by yousuf nazar

PAKISTAN’S economic outlook for the next year or two is serious even if it manages to get the planned three billion dollars in external financial assistance in the next few months.

Its currency has lost 10 per cent against the US dollar since the beginning of the year, trade deficit has jumped by 50 per cent this year, Standard & Poor’s has cut its rating by a single notch to a B with a negative outlook on May 15, and its Euro bonds are being quoted at a spread of 500-600 basis points to the US treasuries compared to an average spread of 261 points for emerging markets bonds.

It is not unlikely that key macro indicators will deteriorate as follows:

— The GDP growth may drop sharply to three per cent or less from 6.6 per cent in 2007. This would imply a drop in the real per capita income of around 80 per cent of Pakistanis due to an approximate population growth rate of 2.4 per cent and skewed income distribution.