Re: A critical look at the Pak economy
His whole article shows that in his head he has hole :) Actually, just like corrupt politicians who fool the ignorants of Pakistan, he is also trying to fool the masses with lies.
If any ignorant wants to get fooled by his lies than its upto that person, but for those that are not fools ... they should see the true figures that State Bank and stats department publishes and updates every few days.
One should also know that his BS that people can increase consumption just because bank give them money to consume, can only convince a mentally retard, because if that would have been case than all governmetn would have done that.
Reality is that, bank only lend to those that can pay and there is no free meal. So, if people borrow, they can do so if Bank thinks that they can afford to borrow and that happens when ecconomy is booming, opportunities for people to earn is there, and that means people can afford to borrow ... that Banks also see and that is why they lend, else no bank would lend to person who do not have any money to repay (Pakkhar and Kangaal).
As for debt, Zia did not increased debt of Pakistan as much as BB and NS increased debt of Pakistan ... and in reality .. his BS is lies that NS and BB was paying debt, because these two corrupts increased effective debt (total debt they inheritted plus interest they paid on debt they inherrited) of Pakistan.
For instance, when Zia died, total Pakistan external debt was around $12 billion plus internal debt was Rs 300 billion. .. When Musharraf took over Paksitan, these two corrupts have already increased foreign debt to $38 billlion (over 3 times in 11 years) and Rs1600 billion internal debt (5 times in 11 years) ... and that comes more than the debt they inheritted plus all interest they paid on that debt. That means, they borrowed not only to pay interest but also to steal.
[If these people had only borrowed to pay interest on inherrited debt and did not reduced debt .. than debt would have been external debt of around $27 billion plus internal debt of Rs 1200 billion rupees]
As for Musharraf government .. .today in 2008, Pakistan external debt is $40 (almost same) billion plus Rs2400 billion internal debt (1.5 times) .. and that means, Musharraf government kept paying interest and did not borrowed even enough to pay interest on debt past crooks left.
[If Musharraf had only borrowed enough to pay interest on past debt than external debt would have increased to around 70 billion dollars ... and internal debt would have increased to around Rs 5000 billion]
Inflation: Between 1991 to 1999 ... during that 8 years, Pakistan over all inflation was around 125 percent (inflation in food items was around 130 percent) whereas .. between 1999 and 2007, during Musharraf 8 years, overall inflation was around 60 percent (inflation of food item was less than 64 percent) .. that means, during 8 years before Musharraf, prices went twice as fast as during last 8 years.
Wages during those corrupt period of BB and NS (11 years) did not go up much (around twice at most .. or 100 percent) ... but during last 8 years, wages gone up by 3.5 times (250 percent).
As for Pakistan exchange rate ... when Zia died in 1988 .. a dollar was Rs17 ... but these corrupts period was so horrible that dollar in 11 years of their period appreciated by over 300 percent as in open market, dollar was Rs 54 when Musharraf took over, Today after 8 years, dollars is Rs 62 ... or it depreciated by less than 15 percent.
Foreign exchagne reaserve that was less than 1 billion dollars in 1999 .. (less than what it was in 1988 when Zia died) ... is today over 16 billion dollars.
Export did not increased during the corrupt period of NS and BB .. and when Musharraf came, it was $7.8 billion. After 8 years it is over $17 billion (increase of more than 100 percent).
Pakistan external account that was mostly negative for Pakistan and it was negative throughout NS and BB period (that shows in increasing external debt through out Pakistan history, and unprecedent increase during NS and BB period, plus having low dollar reserve), is postive throughout Musharraf period and that is the reason Pakistan has paid interest on external debt Musharraf inherrited from these corrupts without external borrowing (that comes to over 4 billion dollars a year on debt of $38 billion Musharraf inheritted from these corrupts) plus unprecedented reserve of over $16 billion reserve.
Pakistan internal debt also increased nominally and that shows that how tight and corruption free Pakistan monetary policy was during last 8 years, as during NS and BB, Pakistan internal debt increased more than 5 times plus external debt also increased more than 3 times, showing how corrupt and loose their monetary policy was plus how rampant the corruption was.
Something that we should also know is that .. when a country develops, proportion of agricultural output in economy decreased because industry (including manufacturing) and services increases ... but during NS and BB corrupt rule, bus since Pakistan economy was stagnant and country instead of developing was going backward, proportion of agricultural in Pakistan economy during these corrupt increased (from around 22 percent in 1988 to 24 percent in 1999) a show of very bad ecconomical performance) ... but during last 8 years .. even though agricultural output increased more than corrupt period of BB and NS ... proportion in total output decreased to around 20 percent whereas proportion of Industry increased substantially (a very good sign of fast growing ecconomy and fast industrialisation).
Pakistan robust industry can be seen from stock market performance, as stock market is mirror of a country's industrial strength as dividents of stock market shares comes from profits of quoted shares ... and it is that performance that make the stock market get its boom .. and we can see how pathetic Pakistan industry did during corrupt rule of NS and BB that stock market was almost stagnant during corrupt periods with no industrial growth of 1988 to 1999 ... but when industrial growth started after Musharraf came to power, stock market has increased by over 1200 percent ... from less than 1200 to touching 14000 today ... and it was touching 15000 few days back (still, divident is so high that stocks are considered cheap when compared to world).
Crude oil import (sign of booming eccnomy) Pakistan that use to import around 9 billion a year in 1999 (less than 1 billion dollars a year of crude oil) today imports around 9 billion dolalrs a year just in crude oil, shows how consumption of energy has increased during last 8 years.
Electricity production: Pakistan that use to produce around 60 M kWh of energy every year in 1999 and even then Pakistan had excess of electricity because people were poor and could not afforded to use that much electricity and it was expected Pakistan would not need any soruce of new electricity as that surpluss would even out by 2010, today produces around 100 M KWh of electricity every year (an increase of around 70 percent during last 8 years) ... and still there is shortage of electricity in the country, because consumption of electricity has increased very fast in the country due to fast growing ecconomy.
Poverty in Pakistan: In 1999, 95 percent of population use to live below 2 dollars a day in Pakistan (well, Paksitan per capita income was itself less than 2 dollars a day ... it was $410 .. or $1.13 a day ... today (in 2007) only 55 percent live below 2 dollars a day (with per capita of $925 comes to $2.54 dollars a day) ... same way, in 1999, around 50 percent use to live below $1 a day but today that figure is near to 22 percent (and Pakistan per capita income that increased by over 100 percent is good proof for that).
*Well ... I feel sad to compare 2007 with 1999 ... as in 2007 we are looking at middle income country that is one of the fastest growing ecconomy in the world ... and comparing with a country of 1999 that was basket case. *
Now if this corrupt idiot 'Kaiser Bengali' who claims to be ecconomist but know shiiit about ecconomy or write shiiit about ecconomy (because he get paid by corrupts), writes BS so that he can mislead ignorants and fools of Pakistan that it is upto ignorants and fools to get misguided, but I am sure that those who know little bit of ecconomy knows the fact and all lies people like Kaiser Bengali and many other writes.