The IMF and Pakistan agreed on a revised fiscal deficit target of 4.7 per cent of gross domestic product in 2010/11 following the summer floods, compared with an original target of 4 per cent of GDP.
To hit that target, the IMF told Pakistan to raise revenue. The country has been unable to do so, however, so it has chosen to cut spending.
how does that figure into your prediction of pakistan in 10 years or so?
Re: Pakistan slashes development expenditure to meet IMF targets
Globally! Pakistan is at par with global recessions but was not able to domestically sustain the blunt blows of energy crisis, natural disasters. To make matters worse Pakistan fell short of any encore reserves to ride the storm.
Borrowed money and getting dictations from IMF has further burdened exchequers, domestic well being, which is directly related to "good governance'.
All these and other factors of the equation requires revolutionary changes.
Raising revenues once again would not be easy for Pakistan.
It has to pay full attention to its Industrial Development, Power/Energy sources, Technical Education for its masses, Global Marketing etc.
The Problem is that all ^ these steps were taken before, one way or the other all wheels of the economy were turning well until we were bestowed on by the "Era of Terrorism"
Cost of Counter Terrorism runs into billions of dollars for Pakistan but the influx of this cost is not flowing back the way it should have.
Its like asking ME to buy something on cash for a million dollar and YOU shall pay me later! much later! In the meanwhile I not only have to manage this extra burden but also keep checking the viability of this transaction.
Through 'Leadership' and minus the current regional situation if we can resolve these issues with micro management precision, Pakistan can do well and exceed good conceptions due to its smaller size and economy.
What Mnmohan Singh is doing for India Dr. Mubasher ex finance minister can do for Pakistan! IMO
Re: Pakistan slashes development expenditure to meet IMF targets
If cost of counter terrorism is affecting Pakistan so much, then why not just stop terrorism in the first place, so you don't have to run counter operations? On the one hand ISI takes pride in maintaining the terror outfits and at the same time whines about expense of keeping the same terror monsters in check.
Re: Pakistan slashes development expenditure to meet IMF targets
If cost of counter terrorism is affecting Pakistan so much, then why not just stop terrorism in the first place, so you don't have to run counter operations? On the one hand ISI takes pride in maintaining the terror outfits and at the same time whines about expense of keeping the same terror monsters in check.
Very Good point! ISI should play a decisive role and end this Pakiphobia Fear because India on its own can not even wave this fly off if it was sitting on Indian noses, they would rather do a "Dhooti-mai-Dhamaka" and call it Foul.