Making every rupee compound

PAKISTAN’S economic debate is trapped in a distracting quarrel — whether banks lend too much to government and too little to enterprise. Allocation matters, but it is not the binding constraint. On the State Bank’s consolidated estimates, with the share of development spending shrinking, a rupee of government spending now multiplies about 0.71 in output on average while a rupee of private investment returns 1.2 to 1.3. The private rupee works nearly twice as hard yet, strip out productivity —...

By none@none.com (Zafar Masud)