You asked two questions: Reserve and what shows that Pakistan was rich during 1999-2008. I can answer you from whatever little I know, but it is impossible for me to answer your questions in one liner. Even though I feel reluctant to give complete answer as it can take several paragraphs, and many have no ability to read more than one line, still I am doing it to make things clear.
Reserves: Good foreign exchange reserve does not make a country rich. However, foreign exchange reserve gives credibility to a Country in world financial market, give confidence to investors, attract foreign direct investments, help Country to get low interest loans, helps the Country avoid defaulting on servicing foreign debts, and avoid country from going bankrupt. Value of a Country’s reserve is nothing to do with amount of reserve, but it is to do with relation to a Country’s import. With a reserve of few hundred million dollars in 1999, Pakistan defaulted on its dollar bond interest payment and was on verge of getting declared bankrupt country. With over $16.5 billion dollars reserve last year, Pakistan had enough dollars to cover 9 months import and was well placed for economical growth and progress, attracting foreign investments and offers of dollar loans at very low interest rate.
Pakistan was rich during 1999-2008? Well, Pakistan was never rich and there is no chance that it would become rich in near future (especially when we have corrupts in power). Anyhow, Pakistan was getting richer during 1999-2008.
How rich a country is can only be seen by GDP per capita of the country in current US dollars (dollars, because it is the only international trading currency at present).
Pakistan Per capita GDP, that was stagnant from 1988 to 1999, more than doubled between 1999 and 2008. Look at the figures and decide yourself. Here is Pakistan per capita GDP in US dollars at various dates.
Source: http://www.statpak.gov.pk/depts/fbs/statis…unts/table2.pdf
Ayub Khan:
1960-61 = $91
1969-70 = $170
Increased 87 percent or on average at the rate of 7.2 percent a year.
Z A Bhutto:
1971-72 = $184
1976-77 = $213
Increased 15.8 percent or on average at the rate of 3 percent a year.
Zia-ul-Haq:
1976-77 = $213
1987-88 = $395
Increased 85.5 percent or on average at the rate of 5.8 percent a year.
Nawaz and BB (1988-1999):
1987-88 = $395
1988-99 = $468
Increased 18.5 percent or on average at the rate of 1.55 percent a year.
Musharraf (1999-2008):
1998-99 = $458
2007-08 = $1085
Increased 137 percent or on average at the rate of 10.06 percent a year.
There was rebasing of the account in 2000, something should happen every 5 years. Due to rebasing, GDP shows a bit of increase. Anyhow, many propagandists wanting to fool ignorant Pakistanis seeing such increase during Musharraf period, start shouting that increase could be due to rebasing, that last happened in 1980, but corrupt politicians ruling during ‘1988 and 1999’ had no ability or time to rebase the account, as they were too much involved in looting and plundering, and were not even concerned about economy. Anyhow, if we increase the period of ‘Nawaz and BB’ until 2000, so that rebasing effects goes out of Musharaf period and get included in ‘Nawaz and BB’ period, here is the figures.
Nawaz and BB (1988-2000 … that includes effect of rebasing of account):
1987-88 = $395
1999-00 = $531
Increased 34.4 percent or on average at the rate of 2.5 percent a year.
[Note: in above figures, all effect of rebasing is included … that also includes a part of increase due to Zia-ul-Haq period (1980-1988). Anyhow, still we had very low increase during this 12 years period]
Musharraf (2000-2008):
1999-00 = $531
2007-08 = $1085
Increased 104 percent or on average at the rate of 9.34 percent a year.
Thus, it shows that Pakistan GDP per capita increased the fasted during Musharraf period and thus Pakistan was getting richer.
Total national debt per capita also shows how country is doing economically, as high income with high debt does not mean richness. Pakistan National debt was increasing very fast during 1988 and 1999. Actually, Pakistan debt increased from around $30 billion dollars (rupee debt plus dollar debt) in 1988 to around $75 billion dollars in 1999. That was an increase of 250 percent in 11 years, or shows an increase at an average of 8.7 percent a year. Pakistan total debt in 1999 was more than twice Pakistan GDP.
Pakistan National debt did not increase much during 1999 and 2008. Pakistan debt increased from over $75 billion in 1999 to around $90 billion dollars today (Sept 2008). That is an increase of 20 percent during 9 years, or increased at the rate of 2 percent a year. This debt is slightly over half of Pakistan GDP (note: substantial amount of mentioned debt was taken after Shaukat Aziz resigned as Prime Minister in Nov 2007, still overall debt is quite reasonable).
Stock market rise of a country shows the richness, progress and development of a country. Country’s currency stability and strength shows richness of a country and strength of the economy. Pakistan stock market declined from 1988 to 1999 and value of dollar increased 300 percent. During 1999 to 2008, Pakistan stock market increased over 1000 percent and rupee exchange rate was stable throughout.
Government richness (different from country’s richness) depends on tax collection minus interest government pays on National debt, as that is the money government could use to develop the country. Pakistan was paying low interest rate during last 8 years (due to prudent economy management), and thus most of tax collection was used for development, especially during years after 2002. As for tax collection, Pakistan tax collection was stagnant in dollars between 1988 and 1999 (rather, it was declining), but as the country started getting richer and better managed, Pakistan tax collection increased around 300 percent in dollars between 1999 and 2008. Pakistan federal tax collection was Rs 308 billion rupee ($6.5 billion dollars) in 1999, that figure increased to over Rs 1000 billion (around $16 billion dollars) in 2008.
So, you can see that Pakistan was getting richer.
. Its about time you stop parroting those garbage numbers, as they mean nothing. Pakistan’s economy was never strong, admit it. Now in addition to a weak economy we have to deal with a whole new front, i.e. the law and order problem with suicide bombings on a daily basis, thanks to Mush’s reign of terror.
