Quote: Pakistan’s economic growth is set to turn out around 7.02 per cent this fiscal year, against a target of 7.0 per cent, and 6.61 per cent growth the year before, Prime Minister Shaukat Aziz said on Monday. Aziz said all three main components of the economy - agriculture, large scale manufacturing and services - had posted high growth in the 2006/07 fiscal year ending June 30.
One of the reasons of Pakistan's recent economic growth is that 'younger generation' is not much into "savings" mode, they like to spend much more compared to older generations. "Saving" is good thing but only to an extent, otherwise saving can only make an economy stagnant.
^ A bulk of it will be loans given out by banks left and right for micro financing (cars, etc..)
I dread what will happen to all those people who have cars on financing if for some reason they can't make the monthly payments anymore and face banckruptcy...
To me it signals an increase in suicide and crime rate coming in next 5-10 years.
It is predcited that our economy will grow even more in the coming year - 7.5% I believe, which is something to be applauded by Pakistani's of all political persuasions.
bhaijan, y did u have to insinuate that I dont think about Pakistan rest of the time? I have no hidden agenda’s or political affiliations. Apna record drust ker lain.
well, i am a sceptic and would not believe the figures presented by Shaukat Aziz. I think the economy is on very weak foundations and the moment the US aid is pulled out, it would come crumbling down. This happened in 80's and it is going to be deja vu.
bhaijan, y did u have to insinuate that I dont think about Pakistan rest of the time? I have no hidden agenda's or political affiliations. Apna record drust ker lain.
If Pakistan grows at an average real rate of 7.5 percent for next 50 years (until 2055 - 2060), it would be as affluent as what is USA today. If Pakistan grows at this rate for 75 years (until 2080 - 2085), Pakistanis of that time would be as affluent financially as America of that time (75 years from now).
Unfortunately, if Pakistan grows at an average real rate of 4.5 to 5.0 percent a year, difference between Pakistan and USA would stay same forever (Pakistan would be kangla country as they are now).
If Pakistan grows at an average real rate of 7.5 percent for next 50 years (until 2055 - 2060), it would be as affluent as what is USA today.
It is highly doubtful, the war on 'terror' and the ensuing economic benefits that are the main reason behind the growth since 9/11 will last for 50 years
I do not think that a country can grow because of internal or external situations, especially a country as big as Pakistan that has population of 160 millions. Only way a country of this size can grow at reasonable rate is when it is managed appropriately and professionally.
If war on terror was the cause of Pakistan growth, than Pakistan would have shown similar, rather better growth when Afghan war (Zia period) was going on and Pakistan was getting open cheque from not only USA but all rich Arab countries.
Unfortunately during those years of Zia, Pakistan was on verge of bankruptcy at least twice (if not more).
I do not think that a country can grow because of internal or external situations, especially a country as big as Pakistan that has population of 160 millions. Only way a country of this size can grow at reasonable rate is when it is managed appropriately and professionally.
If war on terror was the cause of Pakistan growth, than Pakistan would have shown similar, rather better growth when Afghan war (Zia period) was going on and Pakistan was getting open cheque from not only USA but all rich Arab countries.
Unfortunately during those years of Zia, Pakistan was on verge of bankruptcy at least twice (if not more).
You are not comparing two appropriate situations. The economic benefits of this war are much greater than the Afghan war in the 80's.
Actually, what I know, this war on terror was economical loss for Pakistan. If it had not happened, most likely Pakistan would have grown much more.
At one time, people were estimating that Pakistan lost at least 10 billion dollars plus economically during first year of terror war (2001-2002). Only benefit that Pakistan got from this terror war was good relations with western countries that went into ice after 1998 nuclear test. But than, external relations was much better before May 1998 nuclear test, still Pakistan was bankrupt country.
As for foreign exchange reserves, it was already around 4 billion dollars by Sept 2001 (highest ever dollar reserve for Pakistan at that time), before terror war started. That, in spite of sanctions and icy relations with many countries under western influences.
On top of that, Pakistan foreign dollar loan also started decreasing before 9-11. Pakistan started paying their expensive dollar loan even before 9-11. Rupees interest rate in Pakistan started decreasing, deficit financing started decreasing, and government rupees loan stopped increasing. Pakistan tax collection, export and import, all started increasing and were increasing at very healthy pace even before 9-11.
Before 11 Sept 2001 (9-11), Karachi stock market already reached around 2000 from 1200 around Oct 1999, and rupees exchange rate became stable.
