The Ministry of Finance is a Cabinet-level department of Government of Pakistan. It is concerned with the promoting economic growth and economic activities within the country. The Ministry’s executive and political head of authority is known as Finance Minister of Pakistan, Ministry’s executive must be an elected Member of Parliament of Pakistan. The Finance Division dealings include financial matters affecting the country as a whole, preparation of annual budget statements and supplementary/excess budget statements for the consideration of the Parliament accounts and the audits of the Federal Government Organization etc. as assigned under the Rules of Business, 1973. Finance Division also maintains financial discipline through financial advisors organization attached to each Ministry/Division etc. Main duties and functions of the Ministry of Finance: The Ministry of Finance manages government financial assets, it suggests economic and financial policy, and coordinate and manage these actions in accordance with law. It prepares the annual fiscal budget and issue adequate regulations for its implementation and handle government financial assets. It suggests bills related to the management of government employees, specifically bills related to staffing, salaries, benefits and pensions. Other than that, amortization of debt and coordination of financial activities are carried out within the scope of its power, for the different ministries and their associated entities. Ministry of finance also participates in the conciliation of international free trade and financial agreement as well as exercise all powers and rights as conferred on it in the Central Bank Law. General Functions of the Finance Divis... ... middle of paper ... ...ons of private business, and inflation of country. In the end I can suggest that Fiscal and monetary policy of Pakistan has great effect on the economy of the country the coefficient of monetary policy is higher than the fiscal policy which shows that the monetary policy of Pakistan has more concerned with the economic growth than the fiscal policy. In result of this the policy makers should much more focus on the monetary policy than the fiscal policy as compare to its importance to boost up the economic growth. And on the other hand if we talk about the fiscal policy it can also help to enhance the economic growth by eliminating corruption from the country, proper allocation of the resources and control over the wastage of resources. In the end we can suggest that a developing country like Pakistan cannot survive without the effective fiscal and monetary policy.
The price minister is the head of the federal government, who is the government’s chief speaker, main legislator, and head of Cabinet. The governor general, who assigns judges of the federal courts and advices of prime minister as well as accomplishing those duties of the prime minister. The prime minister has power to assign and fire Cabinet ministers, and hundreds of other federal government office
Classical economist’s theory of monetary policy was thought to only affect prices and wouldn’t affect truly important factors such as employment. It was a major concern that if the government was to finance its’ spending only by increasing how much money was produced then it would have the same out come as expansionary monetary policy.
In the study of macroeconomics there are several sub factors that affect the economy either favorably or adversely. One dynamic of macroeconomics is monetary policy. Monetary policy consists of deliberate changes in the money supply to influence interest rates and thus the level of spending in the economy. “The goal of a monetary policy is to achieve and maintain price level stability, full employment and economic growth.” (McConnell & Brue, 2004).
This essay seeks to explain what are monetary and fiscal policy and their roles and contribution to the economy. This includes the role of the government in regulating the economical performance of a country. It also explains the different features and tools of monetary and fiscal policy and their performance when applied to the third world countries with a huge informal sector.
The term Monetary policy refers to the method through which a country’s monetary authority, such as the Federal Reserve or the Bank of England control money supply for the aim of promoting economic stability and growth and is primarily achieved by the targeting of various interest rates. Monetary policy may be either contractionary or expansionary whereby a contractionary policy reduces the money supply, reduces the rate at which money is supplied or sets about an increase in interest rates. Expansionary policies on the other hand increase the supply of money or lower the interest rates. Interest rates may also be referred to as tight if their aim is to reduce inflation; neutral, if their aim is neither inflation reduction nor growth stimulation; or, accommodative, if aimed at stimulating growth. Monetary policies have a great impact on the economic stability of a country and if not well formulated, may lead to economic calamities (Reinhart & Rogoff, 2013). The current monetary policy of the United States Federal Reserve while being accommodative and expansionary so as to stimulate growth after the 2008 recession, will lead to an economic pitfall if maintained in its current state. This paper will examine this current policy, its strengths and weaknesses as well as recommendations that will ensure economic stability.
The Government performs the executive functions of the country. The affairs of Government are decided by the Cabinet, headed by the Prime Minister. Members of the Cabinet are given the formal title of "minister" and each hold a different part of government duties, for example the Minister of Children and Education - Christine Antorini. Altogether they are 19 Ministers incl. the Prime Minister. These ministers are all elected by the parliament.
The directors need to be able to view the financial performance of the group in order to make relevant and informed decisions. In order to obtain this information the correct procedures, as mentioned, must be followed to ensure that assets are not overstated and liabilities
Monetary Policy refers to what the government does to influence the amount of money and credit in the economy, what will happen if money and credit affects interest rates and the performance of the economy. This policy ensures the price stability and general trust in the currency.
The appropriate role of government in the economy consists of six major functions of interventions in the markets economy. Governments provide the legal and social framework, maintain competition, provide public goods and services, national defense, income and social welfare, correct for externalities, and stabilize the economy. The government also provides polices that help support the functioning of markets and policies to correct situations when the market fails. As well as, guiding the overall pace of economic activity, attempting to maintain steady growth, high levels of employment, and price stability. By applying the fiscal policy which adjusts spending and tax rates or monetary policy which manage the money supply and control the use of credit, it can slow down or speed up the economy's rate of growth in the process, affecting the level of prices and employment to increase or decrease.
The financial manager is responsible for giving financial advice and support to clients and colleagues that will enable them to make good business decisions. Particular work environments differ considerable and involve both public and private sector organizations such as retailers, corporations, financial institutions, charities, and even small manufacturing companies and schools (Financial Manager, 2011).
There has a significant effect on reasonably sufficient liquidity in the banking system. Also, monetary and credit growth rapidly and stably, the market interest rates decreased conspicuously and maintain a stable exchange (China Monetary Policy Report 2015). In terms of fiscal policy, China sustains the proactive fiscal policy, boosts the infrastructure expenditure, accelerated reform the tax system and stimulates the economic growth (Jourdan and Lu 2015).
These two policies use to try to shorten recessions. Fiscal policy has its initial impact in the goods markets, then monetary policy has its initial impact mainly in the assets markets, which both effect on both level of output and interest rates. (R. Dornbusch et al., 2008)
Pakistan is the basis in the international fight against terrorism to this day. Many Pakistani terrorist groups have made many terrorist attacks around the world. Pakistan faced the choice siding with or staying against the United States during the aftermath of 9/11. Violence in Pakistan has increased for many years as terrorist groups have targeted many political leaders, tribal leaders, the military, and also schools. Pakistan is divided into people who see the country as modern and/o...
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
The information that has for financial department will determine the budget and the planning for the organization. In establish or development for the organization, the financial information that gathers will determine the size of the company.