Alhamdulillah Pakistan is slowly climbing out of its economic slump, but the question must be begged “where now” for the Pakistani economy.
Whilst the nation rushes to secure an economy based on services and manufacturing, the value of the primamry sector out put cannot be under estimated and should not face any threat of becomming “a burden” by its large workforce, which could potentially be put into more productive work.
To paraphrase Imam Shiekh Hamza Yusuf, we do not want a state which can produce goods for export to Europe whilst we are a net importer of food (are we?). Pakistan must ensure its self sufficiency in food before plunging into a full fledged attempt to modernize the economy on all fronts. Reliance on others for foods leaves a nation weak and its ppl suseptible to manipulation by organizations such as the WFP and other “aid” agencies.
On another note, despite securing a KSA contracrt for IT work, the Pakistani IT industry fails to catch fire and engulf the market-even at a regional level. How do we ail that problem?
Any other new information on our economy which is of use to the arm chair anaylst like myself.
Tax evasion is to high, and corruption in the bureacracy are the main problems..they need to get the govt out of corporate business..and restrict it to regulating fairly and making laws..
[QUOTE]
*Originally posted by Zakk: *
Tax evasion is to high, and corruption in the bureacracy are the main problems..they need to get the govt out of corporate business..and restrict it to regulating fairly and making laws..
[/QUOTE]
Yes corruption is a major cancer for our economy, but the point of my post was to highlight that whatever happens to our economy, we should never give up our agricultural sector for more "financially rewarding" manufacturing work. Indeed we should try to advance, yes, but we should also aim for self sufficiency in food-that is the real strength. Not being reliant on any one to feed the ppl in your nation, is of greater value then being the best at producing motorbikes or w/e.
ISLAMABAD: According to the latest data of the State Bank of Pakistan, domestic debt stands at Rs 1707.78 billion at the end of September 2002. Pakistan’s domestic debt stock totalled Rs 1695.5 billion, or 45.1 per cent of GDP, at the end of the last fiscal year. So, there was an increase of Rs 12.2 billion in three months. Domestic debt stock is rising continuously over the last one decade or so at a rapid pace. The rate of growth stabilised in recent years, but maintained rising trends. In 1999-2000, when the military took over, the size of domestic debt was Rs 1559.9 billion or 47 per cent of GDP. It increased to Rs 1712.5 billion in 2000-01, and slightly declined to Rs 1695.5 billion in 2001-02. Overall, total debt as a per centage of GDP was estimated at 104.2 per cent in June 1999, and rose to 105.4 per cent in 2000 and 113.2 per cent in 2001, before receding to 102 per cent in 2002.
What we need to do is fix up the feudal land lord system for there to be any freedom in primary agriculture and for society as a whole to take a step forward. That includes the economy.
Here is what Pakistan needs to do. (how come all the Paki luminaries have only rhetoric to provide?)
1) Decentralization of power to the provinces
2)Abolition of the license system that inhibits competition and entrepreneuship and establishes transparency
3) Deregulate the financial and baking system
4) OPtimize gov't investment for long term planning like education
5) Gov't and private investment in a lead sector that can compete globally at the right scale. IT is gone....something new needs to be cultivated. Maybe Process?
6) Pay back the loans by establishing zero tolerance on tax collection
7) Eliminate subsidies to poor performing sectors and PSU's
8) Remove the guns from the country and extinguish the jihadi culture. In this market...FDI is solely dependent on perception. Look at china...no foreign investor makes money in China but the aura of a billion person consumer class keeps them coming. Pretty cool eh!
$29 billion is still loads of debt, but its moving in the right direction-ie down. :)
Religion in Pakistan is not a problem, the manipulation of it by a few far right mullas is, Pakistan is an Islamic state, thats the whole point of it. Moderate Islam-yes, but Islam must be there.
Some of the worst problems Pakistan faces and needs to tackle:
1) Clean up and sell of State Owned Corporations, we are losing 100 billion rupees per year on hundreds of corporations that have never posted a profit. Unfortunately that would mean a lot of people need to be made umeployed
2) We need interest rates to come down so people can take loans to invest in cars and domestic appliances.
3) Income tax...we have the worst income tax base in the World. a lot because of corruption in the CBR
[QUOTE]
*Originally posted by mo_best: *
$29 billion is still loads of debt, but its moving in the right direction-ie down. :)
Religion in Pakistan is not a problem, the manipulation of it by a few far right mullas is, Pakistan is an Islamic state, thats the whole point of it. Moderate Islam-yes, but Islam must be there.
[/QUOTE]
Bilkul Sahi.. Pakistan mein Islam utnaa hi hona chaahiye jitnaa ki chholey mein haldi aur lassi mein dahi !! But my teacher at madarsa had different opinions !! thanks bro.. you have long nose but gr8 views.. bada hokey mere punjab daa naam zaroor roshan karien !!
Oye, Kerra market, kis da market, sher putter ?? We import everything putter - right from Jeans to electronic goods.. exporting them would be funny.. esp.. Chinese would not be happy to buy their own products !!! Exporting chane di daal and aloo de parathey would be a great idea..
We have enough money in Pakistan! The question is to manage it well instead of squandering it.
The day we learn to manage our accounts, borrowing money from abroad will become obsolete. :) Instead, we will be able to lend money to other countries.
Pakistan have huge potential, but I once saw a Lorenz Curve for the pakistani society and it showed about 70% of national wealth in the hands of the top 10% of society......with ~ 30% in the top 1%!
That was in an A-level text book, Alain Anderton's Economics V2, it was in a report on income distribution in the developing world. The data was from ~ 98......irrespective if thats accurate (and I see no eason for Anderton to lie!)-thats disgusting, this inequality must be dealth with!
