Budget 2011-2012

Byline: Dr Zafar Mahmood - Email: zafarmah@gmail.com The Pakistan economy is facing a stressful macro environment conditions for the past few years. This stress is originating from continuing high inflation and sluggish growth (the so-called stagflation), which is not allowing the economic managers to generate sufficient productive jobs for the new entrants into the labour market and those who are unemployed. Concomitantly, growing fiscal deficit and debt are posing a threat to the sustainability of whatever is developed and achieved in the past. These indeed are very serious challenges to the sovereignty of the state.