Re: Capitalizing on the earthquake
^ don't forget construction companies specializing in infrastructure development; such as Nespak, Descon etc. Also, Frontier Works Org will likely get the lion's share of the projects due to their historical presence and engagement in development of roads in these areas.
I just hope that all the rebuilding efforts will actually bring these areas out of rampant poverty, and in par with rest of teh country..
Re: Capitalizing on the earthquake
It depends on how much the corruption skims off the rebuilding. Call me a pessimist, but the reconstruction will bring with it more money than a lot of these places have seen in a very long time, and too many people will be tempted to take just a little bit, because a little of this much money won’t be much at all and won’t be missed
Re: Capitalizing on the earthquake
opportunistic thief might be a better choice of words
Re: Capitalizing on the earthquake
And exactly from whom would the thieving of which you speak take place?
Re: Capitalizing on the earthquake
The damage to infrastructure is of a greater magnitude than the Asian Sunami. After teh latter tragedy, 1-2 million people were made homelesss and close to 10 billion was donated for the rehabilitation projects. Currently, in Pakistan it's estimated that 2-4 million have become homeless and no exact figures are available for the extent of damage.
Many agencies fear that the contributions will be far less than the cost of repairing the damaged infrastructure. I can see two major problems: raising the funds for rehabilitation, and keeping inflation in check as the demand of construction machinery and products will sky rocket. How should the government handle this situation..?
I must add one for thing that after teh Taiwan earthquake, the government used it's massive cache of foreign exchange reserves to fund the reconstruction projects. We don't have the luxury of a thick wallet.
Re: Capitalizing on the earthquake
Abdullah what I've read is that the economy will handle the reconstruction fairly well. The damaged areas contribution to Pakstans economy overall is fairly small and the number of jobs created in reconstruction will actually boost the economy. Pakistan is an emerging country, an earthquake won't change that.
Re: Capitalizing on the earthquake
what makes anyone think there will be any reconstruction? these northern areas are not the arteries of the country's transport infrascture....i doubt any of the recent transport projects will be neglected in favor of rebuilding northern areas...they'll prob only be rebuilt over a long period of time, and that too at the expense of other northern areas projects.. the only problem is prob just the resettlement of the people, and that is not a problem..they'll jsut be shifted to other areas.
Re: Capitalizing on the earthquake
I am not too sure that it won’t have any economic impact over the short and long term. No doubt, a speedy rehabilitation and reconstruction drive is needed. But, the sixty-four thousand dollars question is where and how the funds will be generated. Pakistan just does not have enough foreign exchange reserves to import construction machinery and other equipment needed. Domestically, if the production capacity isn’t increased for construction commodities such as cement and steel, it will directly boost the cost of these items by manifold.
One solution is to remove all trade barriers with India and China ASAP, and allow free movement of goods and commodities to keep inflation in check. Raise funds aggressively through international donors and UN to kick the recovery process in high gears, and this will provide a jump-start to overall recovery and job creation. Unless the catalyst is prepared and put in place through prudent planning, it will bound to have an adverse effect on the economy.