Pakistani Bailout Plan
By Ghazala Khan • Oct 18th, 2008 • Category: Politics, Worth A Second Look • 32 Comments •Governor of The State Bank of Pakistan Dr. Shamshad Akhtar has at last woken up after days of uncertainty of the banking sector and has admitted somewhat reluctantly that international economic crisis at one side, but mainly the reason behind Pakistani crumbled down economy is the lapses by the government, and excessive government borrowing is mainly responsible for the current liquidity crisis in the country. She has also approved an amorphous injection of Rs. 270 billion into the market to ease the liquidity crisis.
State Bank is treading a very tough ground littered with mines. It could blow itself with one misleading step and the whole fragile edifice would crash in a jiffy, and country would plunge into total economic chaos. State Bank has to be very careful. Investors, stock-holders and other stakeholders could grow nervous about the trajectory of the SPB’s bailout plan if it appears that enough progress isn’t being made, and the vision isn’t there. This bailout plan must be executed professionally, carefully and in stages, otherwise it would be like pouring petrol on the burning pyre.
There is a pale silver lining to this financial crisis and that would be the shrinking of the banking sector, which has unnaturally ballooned, and has generated bad habits of credit cards, auto loans, house loans and other types of easy loans in the masses, who are borrowing and spending more, way more than they earn. This would put the fear of God in the public about the fact that something can also go bad, while leaving them with virtually nothing.
What does this economic crisis mean for the Pakistani people? More unemployment, more price hike, more poverty, more hunger, more shortages of flour, power, gas and water and other utilities of life and more selling of children and more suicides, and more drifting towards the apathy, oblivion and gloom. While our koshers are fast getting empty and foreign reserves are pathetically low and our leaders are scouring the world to beg for alms, nobody is telling the countrymen to change their habits and convert these loses and deprivation into their gains.
Shouldn’t in the darkness of the load-shedding, we be thinking that there must be more dams, whatever some regional politicians threaten? Shouldn’t in the screams of our hungry children, we be thinking about controlling the population, preserving the natural resources, working hard to produce more and consume less? Shouldn’t be in this age of closed industry, receding business and diminishing job opportunities, we be trying to innovate something novel and dynamic?
Don’t expect anything from the leaders. They are there just to rule us and to fill up their accounts and palaces abroad. They are not going to do anything in this regard except borrowing more and striking secret deals to prolong their Draconian rules. We have to do it ourselves. We have to change ourselves.
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Ghazala Khan
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I have few questions. What does this say about the private sector? Why can’t the all of the private equity funds, sovereign wealth funds, and enormous pools of capital do this themselves? There are trillions of dollars sitting around in cash, yet none of it that sees any value here?
I suspect that part of what we’re seeing in the shoring up of lending markets (i.e. banks) is strategic behavior on the part of big financial players who stand to benefit from the bailout. Who knows where these Rs. 270 billion would end up? Swiss Accounts?
We already know that SBP has so brazenly used aid money to speculate or to buy failing competitors. As the economic crash gets worse, they may just park it in treasuries to try to save their own hides.Either way, they probably won’t use it to keep the system from freezing up and “liquid” or to extend credit to consumers or businesses. False hopes will get expose very soon.
Right now the most important debate among economists, high-level investment advisors and financial experts should be that whether the Pakistani economy will survive or not - that is, whether it will go into runaway inflation or deflation? And more importantly WHAT TO DO?
I don’t know about any of these economic complex things, I just know that I cannot buy flour and I spend my time in darkness and I am seeing nothing that things will improve even in the distant future.
Hey Ghazala, nice to you see. Its always good. You should be writing more.
During these times, safety and liquidity remain key concerns for investments, as investors look to preserve their assets and wealth through what are going to be close to the most difficult of times.
In such a circumstance, gold and silver would be primary hedging tools that would retain real value and also be portable in the event of possible civil turmoil. Also, at some point, the failure of the world’s primary reserve currency will lead to the structuring of a new global currency system. I would not be surprised to find gold as part of the new system, structured in there in an effort to sell the system to the public.
The old systems, institutions and habits are collapsing. This is a window of opportunity to reach people with truth.
On the other hand, there is a tendency for people to become scared, to be driven lower on the Maslow pyramid to the point that they have no energy to think about truth or justice or liberty.
Indeed, this is exactly what the elites hope.
Banks would get a relief from this pumping of badly needed money and it would restore the people confidence on the banks.
This is the spin, but it is completely false.
State bank can do nothing in isolation. It is regulatory authority, not governing body it self to control Pakistan history’s worst trade deficits of last year and this year and still going on. I endorse that this governor of state bank is very dedicated but she is unable to control all matters. State bank should increase liquidity positing in the country if they want to save stock exchange and private investment. No doubt inflation will increase more if liquidity ll be increased but we can save country to go in cycle of internation turmoil. Best of luck for State bank of Pakistan. Our government will do noting so don’t expect. They can only go on visits like beggars to fill their own desires on account of Pakistan.
is it naive to suggest letting the banks fail? let the people who made hundreds of millions from risky bets suffer the consequence by paying hefty taxes on all profits they have made . spend the money on infrastructure such as national health, small business incentives,college funds,education, roads/efficient rail, debt consolidation and relief,care for seniors , sure up social security and pensions ,enrergy solutions… for all of us. or preserve our economy the way it is and still suffer a contraction/depression, lost jobs ,no available credit,a worthless dollar, to keep consuming the way we have.
What else would you expect from “Soodi Nizam”. It is bound for colossal failure.
World should now try Islamic Banking. Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia’h) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba. Generally, Islamic law also prohibits trading in financial risk (which is seen as a form of gambling). In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam.
Islamic finance has been gaining momentum on a global scale for the last 30 years.
Many Islamic Banks have sprung up over the last few years. These changes are occurring both in Muslim and in western countries, and are driven by a global trend amongst Muslims to become more observant of their faith. It might have been the reason why Islamic Banking emerged, however, today Islamic Banking is sought by Muslims and non-Muslims due to the benefits it offers.
Industry size is currently estimated at more than $400 billion, with projected growth of 15% per annum.
Financial institutions around the globe are trying to keep pace with the growing demand for Sharia’h compliant products and services.
Writer’s comments required after so many comments
Stupid Pakistanis (and most unfortunate nation in the world) what have you done!
Repent and cry as such as nobody has cried before. To hell with ch. iftikhar, aitazaz ahsan, qazi hussain, imran khan, nawaz sharif, zardari, geo, ary, aaj, hamid mir, kashif abbasi, shahid masood, kamran khan, talat hussain. They are the enemies of Pakistan.
Look what Musharraf and PML-Q had done for Pakistan in last 5 years of their tenure.
Pak Economy in 1999 was: $ 75 billion
Pak Economy in 2007 is: $ 160 billion
GDP Purchasing Power Parity (PPP) in 1999: $ 270 billion
GDP Purchasing Power Parity (PPP) in 2007: $ 475.5 billion
Pak revenue collection 1999: Rs. 305 billion
Pak revenue collection 2007: Rs. 708 billion
Pak Foreign reserves in 1999: $ 700 million
Pak Foreign reserves in 2007: $ 17 billion
Pak Exports in 1999: $ 7.5 billion
Pak Exports in 2007: $ 18.5 billion
Textile Exports in 1999: $ 5.5 billion
Textile Exports in 2007: $ 11.2 billion
KHI stock exchange 1999: $ 5 billion at 700 points
KHI stock exchange 2007: $ 70 billion at 14,000 points
Foreign Direct Investment in 1999: $ 1 billion
Foreign Direct Investment in 2007: $ 8 billion
Debt servicing 1999: 65% of GDP
Debt servicing 2007: 26% of GDP
Poverty level in 1999: 34%
Poverty level in 2007: 24%
Literacy rate in 1999: 45%
Literacy rate in 2007: 53%
Pak Development programs 1999: Rs. 80 billion
Pak Development programs 2007: Rs. 520 billion
[…] Governor of The State Bank of Pakistan Dr. Shamshad Akhtar has at last woken up after days of uncertainty of the banking sector and has admitted somewhat.[Continue Reading] […]
[…] Original post: Pakistani Bailout Plan […]
Stupid Pakistanis (and most unfortunate nation in the world) what have you done!
Repent and cry as such as nobody has cried before. To hell with ch. iftikhar, aitazaz ahsan, qazi hussain, imran khan, nawaz sharif, zardari, geo, ary, aaj, hamid mir, kashif abbasi, shahid masood, kamran khan, talat hussain. They are the enemies of Pakistan.
Look what Musharraf and PML-Q had done for Pakistan in last 5 years of their tenure.
Pak Economy in 1999 was: $ 75 billion
Pak Economy in 2007 is: $ 160 billion
GDP Purchasing Power Parity (PPP) in 1999: $ 270 billion
GDP Purchasing Power Parity (PPP) in 2007: $ 475.5 billion
Pak revenue collection 1999: Rs. 305 billion
Pak revenue collection 2007: Rs. 708 billion
Pak Foreign reserves in 1999: $ 700 million
Pak Foreign reserves in 2007: $ 17 billion
Pak Exports in 1999: $ 7.5 billion
Pak Exports in 2007: $ 18.5 billion
Textile Exports in 1999: $ 5.5 billion
Textile Exports in 2007: $ 11.2 billion
KHI stock exchange 1999: $ 5 billion at 700 points
KHI stock exchange 2007: $ 70 billion at 14,000 points
Foreign Direct Investment in 1999: $ 1 billion
Foreign Direct Investment in 2007: $ 8 billion
Debt servicing 1999: 65% of GDP
Debt servicing 2007: 26% of GDP
Poverty level in 1999: 34%
Poverty level in 2007: 24%
Literacy rate in 1999: 45%
Literacy rate in 2007: 53%
Pak Development programs 1999: Rs. 80 billion
Pak Development programs 2007: Rs. 520 billion
My analysis and intenational reports says that this recent financial turmoil in Western world is like a Allah’s blessing for poor countries. No doubt this hitted badly USA and Europe…
But what about international consumption trends and prices of utility items in Int’l market… Crude Oil has reached $70 per barrel…. It was $140+ 3 months back… Vegetable Oil prices deflated by more than 50% because demand for Bio Fuel has gone down due to low fossil oil prices. Wheat prices have gone down… Even lower than Pakistan Government support price set for next crops… i.e 950/40kg.
Why this all happened…Reason is only and only financial turmoil in USA…that is a consumer of 26% of whole world production of every thing. Spending trend has gone so down in USa that demand of these utlitiy items has fell down by 50%.
Our government basically searches for excueses… There is no big impact of Int’l turmoil on our economy. Our economy is going down due to Government’s own in efficiencies. Trade deficit is increasing… Is it due to Int’l turnoil. Wheat prices are going sky high, is it due to Int’l turmoil….
Previously Musharraf was used to sit infront of selected reporters and showed them calculations that Our wheat price is lowest in region… Can government do it now….because wheat price is lower in Int’l market but double in Pakistan.
This time they got this excuse of Financial Turmoil, otherwise least population is dependent on Loans in Pakistan and they can’t shake whole economy.
Roti kapra Aur Makkan… was the first priority of PPP Government since 18 Feb.. They negated all other issues by holding this so called slogan… No other issue is disturbing them to do real governance.. Why they are still not able to solve this one issue>>>> it is called excuses upon excuses. They have nothing to do and they are not intend to do any thing… Just searches for other excuse,,,if one excuse gets inapplicable.
So my dear writer and fellow… you just cry and cry. No body is there to hear you innocent people of Pakistan. You have to make your own ways yourself and I am doing the same since first day. Once you will understand that you are alone in the world and you have to do yourself for your survival then you will succeed in practical life. Good Luck!
Canadian consumer confidence took a nosedive this month, especially in Ontario, amid continuing economic uncertainty, sparking fears that shoppers are already reining in their spending.
10 years before shaukat aziz was sent to Pakistan as financial advisor from the platform of City bank and world bank and all has seen how economy of middle or working class was ruined.Now again shuakat tareen is emerged as an ex city bank employee as our Financial advisor.How long our people would be axed by such aliens who are senseless and quite unaware of our real problems.
Islamic banking has largely escaped the fallout from the global financial crisis, thanks to rules that forbid the sort of risky business that is felling mainstream institutions.
But experts say that because of its heavy reliance on property investments and private equity, the booming 1.0 trillion dollar global industry could be hit if the turmoil worsens and real assets start to crumble.
‘In the current financial turmoil, it is interesting to note that Islamic financing may have prevented a majority of the mess created by the conventional banking and financial institutions,’ Kuwait Finance House said in a report.
‘The outlook for Islamic financing is bright and will likely take the lead in terms of providing funding for major projects as the conventional banking system re-evaluates its business model.’
The rules of Islamic banking and finance – which incorporate principles of sharia – read like a how-to guide on avoiding the kind of disaster that is currently gripping world markets.
Islamic law prohibits the payment and collection of interest, which is seen as a form of gambling, so highly complex instruments such as derivatives and other creative accounting practices are banned.Islamic banking basics
Islamic law prohibits the payment and collection of interest, which is seen as a form of gambling, so highly complex instruments such as derivatives and other creative accounting practices are banned.
Transactions must be backed by real assets – not shady repackaged subprime mortgages – and because risk is shared between the bank and the depositor there is an incentive for the institutions to ensure the deal is sound.
Transactions must be backed by real assets – not shady repackaged subprime mortgages – and because risk is shared between the bank and the depositor there is an incentive for the institutions to ensure the deal is sound.
Investors have a right to know how their funds are being used, and the sector is overseen by dedicated supervisory boards as well as the usual national regulatory authorities.
‘Islamic banking has, thus far, remained positive, despite the current challenging global financial environment,’ said Zeti Akhtar Aziz, the central bank governor of Malaysia, which is Southeast Asia’s leader in Islamic banking.
Zeti said this month that because of the slowing global economy, plans for Islamic ‘sukuk’ bonds had been postponed or scrapped by companies including Kuwait’s Abyaar Real Estate Development Co. and Malaysia’s Perisai Petroleum.
And Jennifer Chang, a partner at Pricewaterhouse Coopers in the Malaysian capital Kuala Lumpur, said that given the extent of the global crisis, Islamic banks may suffer damage despite their strong position.
‘Islamic banks, especially in the Middle East, got heavily into private equity and real estate investments, and a lot of loans may be backed by properties. So if the property market goes down, there will be an impact,’ she said.
‘If a borrower is not able to pay then the bank will foreclose and the question is – can you sell the property in the market and at what value? These are issues which all banks can face.’
There have been calls for the conventional banking industry to take a leaf out of the book of Islamic finance, which also shuns investments in gaming, alcohol and pornography in favour of ethical investments.Learning from Islamic finance
There have been calls for the conventional banking industry to take a leaf out of the book of Islamic finance, which also shuns investments in gaming, alcohol and pornography in favour of ethical investments.
Influential Sunni cleric Sheikh Yusuf al-Qaradawi earlier this month called on Muslims to take advantage of the turmoil to build an economic system compatible with Islamic principles.
‘The collapse of the capitalist system based on usury and paper and not on goods traded on the market is proof that it is in crisis and shows that Islamic economic philosophy is holding up,’ said the Egyptian-born, Qatar-based cleric.
In recent years the sector has broken out of its niche and been embraced by mainstream banks. As well as basic bank deposits and investment accounts, it has expanded into areas including equity funds, bonds and Islamic hedge funds.
Abhishek Kumar, a senior research analyst at Financial Insights, a company under market research and analysis firm International Data Corp (IDC), said recent events may further boost the sector.
‘More and more institutions will be interested in providing Islamic services to diversify their risk portfolio,’ he said, while warning that in the current financial storm there were no absolutely safe harbours.
‘We’re not really sure what the real extent of the impact is, and whether we’ve passed the worst of it or not, But the extent is not going to be as bad as in the mainstream sector,’ he said.
Source: Dawn.net
white skinned americans are no fools. Shaukat Aziz,Man Mohan singh,Choudhry of bangladesh all are from either World bank,IMF or citibank. globalisation is the name of the game. In this Americans SPEND while Indians,pakistanies,bangladeshies and ofcourse the chinese SAVE THIER HARD EARNED WEALTH .
Ghazala see how during this crisis American dollar has gained while indian rupee has nosed down while Indians didnot invade iraq or afghanistan!!!
[…] Pakistani Bailout Plan …which has unnaturally ballooned, and has generated bad habits of credit cards, auto loans, house loans and other types of easy loans in the… […]
Nazia,
I think during Shaukat Aziz period you were in the state of sub-consiousness or you were totally deaf and blind that you could not see how Pakistan economy was progressing, how much investment was pouring in, how much the stock exchange had climbed, how far had the foreign exchange reserves shot up and most important the value of dollar which had never gone beyond Rs. 60.
You were so blind (in the hate of Musharraf) that you could not see the development of infrastruture around you. You and your type of people and authors are partially responsible for Pakistan debacle.
We should accept the fact that Pakistan is now being governed by most incompetent and insincere people of her history who neither have any will nor any guts to take Pakistan out of this crisis
This author (as well) must mention when this uncertainties started and who are responsible for this. I think because of his inner biased and partialism, he is ashamed to mention the stability, progress and development Pakistan was enjoyiong during Musharraf era.
Its a shame for anyone who write something without portraying true picture of whole scenario and such a person does not deserve to pick the pen if he can’t maintain its sanctity.
.
THE BELOW SHOWS THAT PEOPLE IN OUR COUNTRY KNOW ONE
THING I.E. CRITICISM WITHOUT A GENUINE KNOWLEDGE OF
THE FACTS AND FIGURES - IN DOING SO THEY ALSO WELCOME
BACK TAINTED POLITICIANS WITH HISTORY OF FINANCIAL AND
OTHER FORMS OF CORRUPTION KEEPING HIGH HOPES OF THEM
RE-SHAPING THEIR DESTINY!! THERE IS NO RECOGNITION OF
ONE WHO HAS DEVOTED TIME AND EFFORT WHICH HAS SADLY
GONE DOWN IN VAIN!!
SOURCE: VARIOUS ASIAN, EUROPEAN & AMERICAN RESEARCH
ORGANIZATIONS OF INTERNATIONAL STATURE!!!
INTERESTING. Basic comparison of 1999 and 2007
Pak Economy in 1999 was: $ 75 billion
Pak Economy in 2007 is: $ 160 billion
GDP Purchasing Power Parity (PPP) in 1999: $ 270
billion
GDP Purchasing Power Parity (PPP) in 2007: $ 475.5
billion
GDP per Capita in 1999: $ 2,000
GDP per Capita in 2007: $ 3,004
Pak revenue collection 1999: Rs. 305 billion
Pak revenue collection 2007: Rs. 708 billion
Pak Foreign reserves in 1999: $ 700 million
Pak Foreign reserves in 2007: $ 17 billion
Pak Exports in 1999: $ 7.5 billion
Pak Exports in 2007: $ 18.5 billion
Textile Exports in 1999: $ 5.5 billion
Textile Exports in 2007: $ 11.2 billion
KHI stock exchange 1999: $ 5 billion at 700 points
KHI stock exchange 2007: $ 70 billion at 14,000 points
Foreign Direct Investment in 1999: $ 1 billion
Foreign Direct Investment in 2007: $ 8 billion
Debt servicing 1999: 65% of GDP
Debt servicing 2007: 26% of GDP
Poverty level in 1999: 34%
Poverty level in 2007: 24%
Literacy rate in 1999: 45%
Literacy rate in 2007: 53%
Pak Development programs 1999: Rs. 80 billion
Pak Development programs 2007: Rs. 520 billion
Under Musharraf’s vision
· 9 world class Engineering universities being
developed and 18 Public universities already
developed.
· Public sector institutions have increased from
110,267 (in 1999) to become
· Private sector institutions have increased from
36,096 (in 1999) to become 81,103 (in 2006).
· PAK is 3rd best in world Banking profitability.
· PAK IT industry now values around $2 billion,
including $1 billion exports and employs around 90,000
professionals.
· CNG sector has attracted over $70 billion investment
in last 5 years; and created 45,000 jobs.
· Telecom sector attracted around $10 billion in
investment and created above 1.3 million jobs.
· Industrial Parks are being setup throughout the
country for the first time! M3 estate, Sunder
industrial estate, Chakri, etc.
· Major Mega projects like the Saindak, Rekodiq,
Marble production, Coal production and Mining &
Quarrying are being pursued.
· In 2006, GDP growth is 6%. Earlier in 1999 was 3.5%.
· Foreign Reserves from $1 bn to $17 bn.
· KHI stock market: from 700 points to 13,000 points.
· Literacy rate improved by 11%.
· Poverty decreased by 10%.
· He made 4 dams: Mirani, Subakzai, Gomalzam, Khurram
Tangi dams.
· 6 Motorways completed or under construction: M1, M3,
M8, M9, M10, M11.
· Six major highways under construction.
· GWADAR advance mega Sea port developed under his
vision!
· Historic 100% increase in Tax collection of $11
billion.
· Large scale manufacturing is 30 year high, and
Construction activity is 17 year high.
· Newly found World class copper- gold deposits in
Chagai will fetch $600 million per year.
· A new Oil refinery with UAE will fetch $5 billion &
will process 300,000 oil barrels a day.
· Industrial sector registered 26% growth.
· PAK in 1999 was a $75 billion economy; and now 2006
it’s $160 billion economy!
· PAK economy is now the 3rd fastest growing economy
after China & India .
Education under Musharraf Era
In 1999-2000 there were 31 Public Universities. Now
2005-2006 there are 49 Public Universities. Under
Musharraf 20 NEW UNIVERSITIES SET UP!
· Air University (established 2002)
· Institute of Space technology, ISB (established
2002)
· Sardar Bahadur Khan Women University , Quetta
(established 2004)
· University of Science & Technology, Bannu
(established 2005)
· University of Hazara (founded 2002)
· Malakand university, Chakdara (established 2002)
· Karakurum International university, Gilgit
(established 2002)
· University of Gujrat (established 2004)
· Virtual University of Pak, Lahore (established 2002)
· Sarhad University of IT, Peshawar (established 2001)
· National Law University, ISB (2007)
· Media University, ISB (2007) etc.
· University of Education , Lahore (2002)
· Lasbella University of Marine Sciences, Baluchistan
(2005)
· Baluchistan University of IT & Management, Quetta
(2002), etc.
Pakistan now has a total of 245,682 Educational
institutions in all categories, including 164,579
(i.e. 67 percent) in the Public sector and 81,103
(i.e. 100 percent) in the private sector, reports the
National Education Census (NEC-2005). The census –
jointly conducted by the Ministry of Education, the
Academy of Educational Planning and Management (AEPAM)
and the Federal Bureau of Statistics (FBS) — reveals
that the number of private-sector institutions has
increased from 36,096 in 1999-2000 to 81,103 in 2005,
i.e. by 100 per cent.
Total 99,319 Educational Institutions (Public &
Private) have increased in Musharraf Era!
Should I 2?
President Asif Ali Zardari is the second most richest person in Pakistan after Mian Muhammad Mansha Yaha with 40 Companies on Board.
It has been disclose in a list released in the Internet, which has shorlisted Pakistan’s Most Influential Business Tycoons who have made their presence felt for a better part of country’s history.
President Asif Ali Zardari is Ranked 2 with total assets worth &1.8 billion. Zardari has huge stakes in Sugar Mills all over Pakistan while also has huge Business Ventures in the Middle East running into hundreds of Million if not Billion Mark.
Sharif Brothers Nawaz Sharif and Shahbaz Sharif are fourth on the list of most Richest persons in Pakistan with total assets ($ 1.4 billion).
“A slap on the faces of Musharraf bashers and an eye opener for the Pakistani nation.”
Govt must endorse past economic policies to get $7.5bn IMF loan
Thursday, November 06, 2008
By Khalid Mustafa
ISLAMABAD: The government in order to qualify for the IMF loan of $7.5 billion under the newly created Short-Term Liquidity Facility (SLF) is left with no option but to endorse the economic policies of the last decade, a senior official told The News.
The SLF is available to emerging economies with a track record of implementing strong macroeconomic policies, but caught up in the global financial crisis, the IMF website says.
“If Pakistan is to formally move IMF for this loan, it would have to show that country has good track record of implementing good economic policies” the official said.
“If new economic mangers say that country did not perform well in the past, it will not be eligible to qualify for IMF’s Short-Term Liquidity Facility,” he said.
The purpose of this Facility is to provide large, upfront, quick disbursing, short-term financing to help countries with good track record to address temporary liquidity problems in capital markets. The IMF Executive Board approved the SLF on October 29.
Pakistan is to get 500 percent of its quota, which stands at $1.5 billion that amounts to $7.5 billion for two years.
“If the current government moves the IMF for the newly created SLF it would mean that Musharraf regime’s economic policies were in right direction that lifted Pakistan from low to medium income country,” the official said.
In the last Friends of Pakistan meeting held in New York the economic managers of the present government acknowledged that Musharraf regime’s economic policies were in right direction owing to which the macro economic indicators improved. President Asif Ali Zardari was also present in the meeting.
During that meeting it was acknowledged that the size of the economy swelled to $170 billion from $60 billion during the Musharraf regime and the per capita income also increased to over 1000 dollars from 500 dollars. The GDP growth increased to over seven percent for most of the period and foreign exchange reserves scaled to unprecedented height of $16.5 billion in October 2007.
The Zardari regime’s economic managers marketed the performance of the Musharraf regime in the Friends of Pakistan meeting in USA and also in Dubai talks with IMF to qualify the help of friend countries and IMF loan to bail out itself from the economic morass.
“This shows that Zardari regime has dual faces as it acknowledges before the world that Pak economy performed well in the last decade, but on domestic front it says that economic polices of Musharraf have ruined the economy.”
The economic wizards to qualify for their help the and IMF loan want the Friends of Pakistan to believe that the country performed well in last decade and its balance of payment situation has worsened due to global financial crisis and massive hike in oil and food prices.
The official said that Pakistan has now decided to place formal request to IMF after the meeting of Friends of Pakistan that is to be held in Dubai on November 17, as Pakistan wants to exhaust this opportunity first.
However, Friends of Pakistan and international financial institutions (IFIs) want to take IMF on board so that the Fund could monitor the economic policies of Pakistan and to ensure their financial help is being used properly.
DAILY NEWS
Ghazala Khan says:
” We have to do it ourselves. We have to change ourselves ”
Allah bless you and our nation in your willingness, efforts and determination to achieve your national goals soon. Jurrat e Khanam aur Himmat e Mardan and Madad e Khuda
Kabhi nazren milane main zamane beet jate hain
Kabhi nazren churane mein zamane beet jate hain
Kisi ne ankh bhi kholi to sonay ki nagri main
Kisi ko ghar banane main zamane beet jate hain
Kabhi kaali siyah raaten hamen ek pal ki lagti hain
Kabhi ek pal bitane main zamane beet jate hain
Kabhi khola jo darwaza khari thi samne manzil
Kabhi manzil ko paane main zamane beet jate hain
Yeh kaam bohat assan sa hai, kion Mushkil itna lagta hai ?
Kion himmat toot si jati hai kion dar sa lagta hai ?
Aadat si ho gai hai kion keh shaid ” kuch hua hasil na abtak koshish e beekar say ”
Manzil hai kuch door tu kia, Jab saath chlain gay mil kar rasta kut jai ga.
On day of celebration will you join me with your team on Tikka kebob Naan Party. soon Insha allah
Ofcouse in Lahore where else?
__________________
Miss Ghazala Khan
Do you bother to read after you finish writing, and before posting. Please read again
Sorry Miss but what a load of twaddle! What can be more destabilising to the country’s Financial system than a leader of a political party who doesn’t believe in honouring agreements? how will world leaders have any trust on Mr. Zardari and the country he represents when has himself admitted his refusal to comply with agreements made and signed by him? Please have some perspective when accusing others of being unpatriotic.