Re: China Has a New Growth Challenger -- Pakistan - (Bloomberg)
Pak economy is going in circles. No solid foundation.
Foriegn currency reserved - post 9-11
Lots of money in banks to lend out
Increase expenditure of middle class - car, house and good on lease - middle class living starndard raises but consumption is based on borrowed money from banks (Rs. 77 B approx for last year)
No new manufacturing plants are installed in terms of forien investments - only services like telecom etc are benefitted and they investers taking profit out of the country. Fewer jobs created, no R&D in technology or manufacturing.
Taxes raised for salaried people - No taxes on feudles and elite class.
Fake hype in property and KSE ate Billions of Rs. of middle and poor class and a certain class and some generals filled their pockets.
Selling country's assets to foriegn companies is also risking our economic security.
I think we didn't properly use the forex that came after 2001.