Overselling

Globalization
Agenda
⊸ Summary of article
⊸ Alternate article summary
⊸ Conclusion and recommendation
⊸ GLOBALIZATION
⊸ process by which domestic businesses grow
international influence or start operating on an
international level across the borders.

⊸ Globalization is integration of market and

government.

⊸ Market : fulfill the needs and wants.

⊸ Government: to cope up the nations weakness.

⊸ Washington Consensus
1) economic treatments considered to organize the
reform package promoted for crisis wrecked developing
countries by Washington Dc based institutions like
World Bank and IMF etc.

2) The treatments incorporated policies in areas as

macroeconomic stabilization, economic opening with
respect to both trade and investment, and the expansion
of market forces within the domestic economy.

3) highlights less regulated markets above government

provision and free flow of capital and goods & services
across the borders.
Author and his Criticism
⊸ Article written by
Summary
⊸ Structural reforms and great steps done by
Pakistan:
1. Privatization
2. Restructuring public corporations
3. Financial sectors reforms
4. Civil services reforms
5. Collection of Taxes
6. Utilities companies started campaigns
7. Investments done in 3 major sectors i-e IT, Textile,
Oil & Gas
Summary
⊸ Gap between expectations & results:
1. Key economics institutions were incompetent ( non
professional man power)

2. Unanticipated external and internal developments

3. Gap between expectation & results explained by

numbers of factors but constraints imposed by
global environment including conditionality's of IMF,
inability of our key institutions in implementing
policies and un anticipated external developments.
Alternate Article

Class ID : 56311
Summary
⊸ Adoption of economic stabilization and structural
policies in 1988.

⊸ Failed to implement

⊸ 1988-1996 years of repeated and failed attempts.

⊸ Trapped in circle of poverty, low growth, low

savings, low investments.
Summary
⊸ Reserves plummeted from 1.2B to 0.6B in 1988.
⊸ Done testing of nuclear devices on 28th may 1998.
⊸ Faced threats of economics sanctions from USA
and other countries.
⊸ Froze Foreign currency accounts as fear of cash
outflows.
⊸ Cutting of about 2.5 bill inflows projected for that
fiscal year.
Summary
⊸ Government Policy Reforms (1988-1998)
1. Monetary reforms ( T Bills & Privatization)
2. Regulatory & Supervisory Reforms
3. Tax reforms (CBR)
4. Export promotion policies
5. Expenditures reforms
Summary
⊸ East Asian crisis
1. Pakistan financial sector remain weak
2. Increased weakness to foreign exchange liquidity
problem
3. Foreign currency exposure of the private sectors
in Pakistan was low. Despite repeated attempts,
this sector had limited success in raising capital
from international sources.
4. Karachi stock market crashed
Conclusion
⊸ External debts and loans taken by different
administrative governments and conditionality's of
external financial institutions in the period of ten
years troubled Pakistan

⊸ Failed implementation of good policies due to less

effective institutions and authorities
Recommendation
⊸ Policy implementation is very important.
⊸ Appointments on merit bases.
⊸ What IMF implemented if we have done with our
own then today our economy would be more
stabled economy compared to past.
⊸ More reforms are needed in taxations like tax
base should be more widen.
⊸ Exports should be more focused zone and export
duty should be minimized so that it can create
and attract foreign exchange.
Thank You