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Investment Finance Companies

Looking Forward with Hope

The Annual Report of the State Bank of Pakistan for the financial year 1986-87 examines a number of imponderables, drawing attention particularly to the malaise in the economy because of weaknesses in financial and planning policy of the Government. Despite adverse weather conditions, a higher growth rate of 7 percent was achieved but with no significant remedies for structural weaknesses such as deterioration in public finances and the balance of payment situation, with the Government forced to resource to bank borrowing for budgetary support, particularly in view of the adverse public reaction to the initial annual budget. The significant achievement of the State Bank Report was that it was candid and gave a lucid summary of the ills pervading the body economic. Congratulations are in order to the authors of the Report for expressing with candour for the first time the deep need to restructure the basis for economic planning. It is a clear signal to others involved in the business of statistics that the business of Government is apt to suffer if perceived through rose-tinted glasses.

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