Most of the claims about GDP growth are nothing but Government’s filthy propaganda. Everyone, who so excitedly repeats the Governmen’t swan song of GDP growth, needs a lesson on basic economics. I have noticed many members on this board who are probably unaware of basic Economics, and yet defend their stances so furiously, that I am left with no option, but to ignore them.
For now let us assume that the Government’s figures on GDP growth are correct.
GDP Growth rate = 7% (for last 3-4 years)
Population Growth Rate = 2%
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Real GDP growth which is (GDP GROWTH- INFLATION ) = 13.6-10= 3.6%
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Real Per Capita GDP Growth which factors in population growth is even worse
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Food Inflation in Pakistan is in the neighborhood of 15 to 20% per year, which mostly affects the poor as food is their major expense
Mohsin S. Khan and Axel Schimmelpfennig wrote in an IMF Report on Inflation in Pakistan,
“With monetary growth picking up, inflation followed and increased sharply in late 2003, peaking at 11 percent year-on-year in April 2005. Average annual inflation appears to have stabilized around 8 to 9 percent by September 2005.”
This year, however, inflation is estimated to be at 12.6%, which of course, will be under-reported by our so truthful government. Food inflation will be in the neighborhood of 18%, which basically means imminent death (which ofcourse is a relative term) for the poor.
Just a few days ago some pro-Mushy kids on this board claimed that average wages in Pakistan had gone up by 500% in last 5 or 6 years. Honestly, I don’t know where they got their information from, so I had no answer. Another claim came from a gentleman who claimed (by using GDP in PPP dollars) that Pakistan was indeed doing very well, as it had a GDP of 440 something billion dollars. Wow! I must say.
