So much for 'trying desperately' to defend Mushy.
Oh I am not trying to defend him but just trying to understand the Much Ado about Nothing.
And here is an answer to some of your queries:
The trade deficit has swelled to $22 billion, from $13 billion last year, **mostly due to heavy import bill from oil and food,* Oil imports are now $12 billion, about 30 percent of the total imports of $40 billion.*
But how does this reflect on the incompetance of Musharraf. Pakistan is no oil producing country. Naturally we are dependent on foreign oil.
With oil prices sky rocketing in the last year it should be making up for a large portion in our total imports. The larger figures do not imply more consumption but rather higher cost now.
So are you suggesting Mushy should have cut down our gas consumption and ask people to Bicyle to work instead. Even an economy as huge as USA is now in shambles and people are feeling a crunch at the pump here.
If this is your argument to say that Mush policies have brought about economic decline on Pakistan then I must say what a lame and biased effort it is. What has been happening to the world economy during the past year and gas prices in not in Mushy's control and Pakistan being a third world developing country has no choice but to swallow this bitter pill.
Re: Pakistani rupee hits record low.
^ Yes he did, when an shallow leader (who has other things on his mind) fails to address the energy issue for 8 whole years, and fails to add power to the country, then the country is bound to end up in an energy crisis. To solve that energry crisis, oil imports start going up, and because of that, we end up depleting any reserves we have.
Re: Pakistani rupee hits record low.
Recently it was disclosed that KESC and the IPPs in Karachi have got enough installed capacity to meet Karachi's demand but due high fuel prices, line losses and theft they are working only at 50-60% of their capacity.
Re: Pakistani rupee hits record low.
^ High fuel prices being the key word here. Capacity means nothing, you can build a huge grid, but you have to feed the grid too.
Re: Pakistani rupee hits record low.
i think the fair price of rupee is around 100/$ .. looking at various factors such as dwindling foreign exchange reserves, exports etc...
So whoever is not in agreement with you, your thoughts or your logic is bought out by Zardari or Nawaz Sharif, cool.
What an assumption :). Actually, when a person writes that Rs 100 note is more valuable than Rs 500 note, than I think these people are idiots or bought out by corrupts who want to fool ignorant masses on behalf of corrupts. Anyhow, since you asked, let me answer you in detail.
You should know that economics is full of facts and figures. These facts and figures come after lot of work by governmental organisations where many departments and ministries are interdependent on each other (State Bank, FBR, Statistical department, National Accounts department, etc) and such organisations could not B*ll-Sh*t as thousands of people are involved in collecting and collating these figures plus even if any wrong figures get quoted than it could bring havoc to country's finances, especially if figures are over estimated, as not only country's budget (including provincial distribution of funds, defence budget, government borrowing requirements, interest rates in the country, government salaries, allocation of funds to different departments, institutions and ministries, etc) depends on these figures, but World Bank, IMF, Most world financial institutions, economists of big national and international business houses and banks in the country, and 'International economical intelligence and research organisations' monitor these figures as well as method used to get these figures.
International institutions monitor these figures because billions of dollar worth of world investments, trades, and businesses are involved with different countries, so such information are important, as any wrong in facts and figures of a country means huge losses and fraud. For instance, many multi-nationals have investments in Pakistan and their investment strategy in a country depends on these facts and figures, so these multinationals as well as their parent countries safeguard the investments. Thus, if any country gives wrong information then that could be taken as international fraud. Nevertheless, source of these figures are always country's own governmental organisations, as it is they who do work to collect and collate these facts and figures.
You will see that whenever I give facts and figures, I do not take it out of my backside but give references of governmental organisations where I got those facts and figures. On the other hand, if you would look at the writings of thugs, liars, crooks, corrupts, and bought out journalists or anyone who write bad about economical performance of Musharraf government, they would seldom give facts and figures, but even if they would give figures, they would either get those figures from their own backside hole, or would give references of other journalists who would have done the same, that is quoted figures coming from their own backside holes.
Anyhow, if anyone really give reliable figures regarding Pakistan coming out of official documents (or announcements) of Pakistan governmental organisations who are responsible of these figures (State bank of Pakistan, Pakistan statistical department, FBR, National Accounts department, etc), or concurrent figures like stock exchange index and exchange rate from quotations in News papers, than certainly I would believe them.
^ Yes he did, when an shallow leader (who has other things on his mind) fails to address the energy issue for 8 whole years, and fails to add power to the country, then the country is bound to end up in an energy crisis. To solve that energry crisis, oil imports start going up, and because of that, we end up depleting any reserves we have.
My dear Vulcan brother (just like to tease you, I mean no disrespect here)
Your argument was oil imports. The Pakistani economy is in shambles because we are paying more for oil, this was your argument. I clarified that from what you posted, higher cost of oil in the overall imports does not mean higher consumption. Please quote a source which indicates how much the oil consumption has gone up and if you are then even that may not be misconstrued as a bad thing. Pakistan is a third world country, countries like USA are even scrambling to cope with the rising cost of energy.
Infact anything Mushrraf may have started regards energy is going to bear fruit during the tenure of these crooks and they will get the credit for it provided they do not squander it away.
Re: Pakistani rupee hits record low.
^ Musharraf didnt start anything to solve the energy deficiency. Just like how I proved from his own words, that his regime was responsible for the economic mess, since you dont believe foriegn or local media, I can show you where he admitted that one of his regimes shortfalls was failure to tackle the energy issue. To bear fruit, you have to sowe seeds, and Musharraf and his band of crooks were too busy enjoying their learjets to have thought about such things.
Un-natural resources .... you mean the nation itself does not contribute to growing the economy in other words.
Please elaborate specific reasons and causes and policies. This blame game doesn't do any good. Lets be specific here. I am here to understand not argue but I like substance in posts not vague arguments.
USResident, I would like to know that where were you and what was your age when Mush took over in 99, also where were you post 9/11 era.
By un-natural I mean a lot of things.. When Mush took over Pakistan was in dire straits due to the Blah blah and blah of NS. What apparently happened is that Mush successfully Re-Scheduled most of the immediate foreign loans of Paris Club and others to the extent of 5-15 or may be 20 years ( someone pelase correct if inaccurate). As a result Pakistan was free to save much of the incoming dollars/foreign exchange. This helped Pakistan a lot during those days cause Pakistan was not literally not paying any debts, instead the Foreign reserves started to climb.
In the post 9/11 era, many Pakistanis and some of the investors started to shift back their white and black to Pakistan from US and Europse cause of panic situation. This caused a lot of real state boom in Pakistan. Same happened in Middle East when many of the Arabs brought their money back to Middle East and started to invest in various sectors.
Also when Pakistan became part of WoT, Pakistan started to receive a lot of greenbuck from US for the services it provided to US and other forces ( which mainly were claimed to be logistics only, but in real it was much more than that). Also FDI started to pour in as well, many investors ( rather greeeders) eyed Pakistan as a hot spot for investors. Apart from that due to many of the great policies of Mr. Shortcut Aziz, Pakistan became a whole sale market of many big franchises. Not many of the companies brought their productions units to Pakistan as the same happened in India, China and even Bangladesh in the region. Pakistan agricultural sector collapsed in this era cause of that Pakistan has to import high quantity of Wheat and other commodities. If you remember the sugar crisis, it was a mess created by this Aziz and Mush as well. When an inquiry was set for the sugar crisis, Mush himself directly ordered to stop the inquiry.
Mr. Aziz used to brag in his conferences that this months tally of mobile phone, cars, refrigrators and tractors is this much. But he never mentioned that all of this is given on loan to ppl. Not many Pakistanis were able to afford it as cash purchase. If you are in Pakistan at the moment, just ask any bank manager that how difficult it is now to get back the money they loaned to ppl of Pakistan and you will know the truth.
Do tell us if you think that selling of cars, mobiles phone and other BS can be considered as development index. I hope you got the point that what is un-natural.
lets give due credit to Mush-Aziz government. unless someone has "another" explanation of this "phenomenon".
Indeed. Pakistan never had it so good as it did under the glorious leadership of former President, the Great Pervez Musharaf. The Unprecedented Economic Growth, Unprecedented amount of Foreign Reserves handed down to the new government. The glorious economically prosperous days, with high employment and high manufacturing output as seen until last year, will not be seen again for a long while. :(
Indeed. Pakistan never had it so good as it did under the glorious leadership of former President, the Great Pervez Musharaf. The Unprecedented Economic Growth, Unprecedented amount of Foreign Reserves handed down to the new government. The glorious economically prosperous days, **with high employment and high manufacturing output **as seen until last year, will not be seen again for a long while. :(
Can you show how much they have declined this year? Any numbers?
Indeed. Pakistan never had it so good as it did under the glorious leadership of former President, the Great Pervez Musharaf. The Unprecedented Economic Growth, Unprecedented amount of Foreign Reserves handed down to the new government. The glorious economically prosperous days, with high employment and high manufacturing output as seen until last year, will not be seen again for a long while. :(
yeah that unprecedented export of Sugar cane and unprecedented sale of steal mill and unprecedented export of wheat and unprecedented corruption and unprecedented increase in rate of suicides and unprecedented increase of parents trying to sell their children and the unprecedented number of women willing to get raped so that they can have Western Visas ( as per your great president) and the unprecedented increase in price of DAAL so that ppl should eat MURGHY (again as per your unprecedentedly great president) and the unprecedented list can go as long as you want. Only the rich benefited during that era.
Enough of it Aalsi open your unprecedentedly closed eyes and come back to the reality.
Enough of it Aalsi open your unprecedentedly closed eyes and come back to the reality.
Reality is for all to see. Foreign Reserves have dwindled down to just over $8billion, begging bowls are out, unemployment is increasing by the day. Shame, shame, shame. :(
Re: Pakistani rupee hits record low.
unprecedentedly closed eyes lol
It hasn’t got as bad as 2005 yet, were you saying “shame shame shame” in 2005 too?
Pakistan Unemployment rate - Economy
Increase in unemployment is because of the shortage of power, many industrial units were closed (probably more are shutting down too).
Reality is for all to see. Foreign Reserves have dwindled down to just over $8billion, begging bowls are out, unemployment is increasing by the day. Shame, shame, shame. :(
Just go and ask the State bank governer for the real reason and you will know why they are dwindling like that.. Cause Pakistan is paying back its debt which got re-scheduled in 2000 and others which this unprecedented govt of yours took. If you remember Pakistan also took much loans after the earth quake and govt bragged that they have taken big grants, instead most of the them were loans.
and the un-employment is mostly cause of energy shortage in Pakistan since many of small and big industries have closed cause of no power.. or baychoo logon ko fridge or AC or na lagao power plants yehee hogaaa..
Ayena tou zara un ko dekhayain
Aqal nahie tou shakal tou dekhayain
Yea Nawaz-o-Zardari kay paro-kar
jhooton ko zara sach tou dekhayain
A very worrying situation for Pakistan as Pakistan is on verge of bankruptcy … hmmm … well, is that 1998 or 2008? Sorry, it was 1998 … Please check 
Gosh, what a dire situation. Please read the situation of a country with $40 billion debt and reserve of $480 million, that also after defaulting, that is, after stopping all payment of debt servicing (interest on the debt) other than to preferred creditors, basically becoming defaulter. This was Pakistan at the end of 1998, and by end of 1999 when Musharraf took over, situation got much worse than situation in Dec 1998. If one thinks carefully and logically, one would realise that even though present crook and incompetent government of Zardari and Nawaz handled the economy badly, last 6 months of deterioration is not enough that one should give up complete hope, as even now Pakistan economy is 100 of time better than 1999. Though, if things do not change quickly, it is possible that these thugs could bring the miserable days of 90s back, when Pakistan use to live hand to mouth.
The given News report is big slap on the face of those who lie and do propaganda on behalf of corrupt politicians, that Musharraf government increased foreign debt. Foreign debt of Pakistan in 1999 was $40 billion or more, when GDP was $62 billion, reserve was few million dollars, and rupee was devaluing fast. … Pakistan foreign debt in 2007 was still $40 billion, but GDP was $175 billion, reserve was $16.5 billion and rupee was stable. Fact is that, Musharraf government maintained foreign debt to same level as it was in 1999 (rather reduced it a bit) while kept paying interest of around $4 billion a year on those debts Musharraf government inherited. Plus, on top of keeping the debt steady, Musharraf government worked to increase GDP as well as accumulate $16.5 billion reserve from few million they inherited in 1999. Most important is that, Pakistan external debt increased almost every year since 1947 and year between 1999 and 2007 was exceptional that foreign debt of Pakistan first time in Pakistan history did not increased.
As for rescheduling, many ignorant think that rescheduling means reduction in debt. Truth is that, there is no free lunch. Rescheduling only gives breathing space to a country without any loss to the creditors. Pakistan rescheduling of debt means Pakistan would start paying those debt in May 2017 and last payment would be in Nov 2037. Nevertheless, Pakistan still has to pay interest on those debts, so rescheduling would either increase the debt or would make it stay same if country keeps servicing it (keep paying interest on those debt). Benefit of that rescheduling is still there, as first payment is due in May 2017.
Pakistan denies report on foreign reserves depletion | Asian Economic News | Find Articles at BNET
Date: Dec 14, 1998
Pakistan denies report on foreign reserves depletion:
ISLAMABAD, Dec. 11 Kyodo
Pakistan on Friday denied reports that its foreign exchange reserves will be wiped out by Jan. 15, 1999 as a result of a repayment of its debt obligations due in two weeks. Finance Minister Ishaq Dar told a press conference that Pakistan has taken steps to meet its next repayment on its 40 billion dollar foreign debt without having to draw heavily on foreign exchange reserves, which currently stand at 480 million dollars. ‘‘All payments to preferred creditors will be paid within the grace period (ending Jan. 15, 1999),’’ he said, adding that the situation is not worrisome since a scheduled disbursement from a 1.3 billion dollar International Monetary Fund (IMF) package is due next month. Pakistan has been facing a foreign exchange crisis since August this year. Since then it has ceased servicing debts to bilateral donors and commercial creditors, only making repayments to the IMF, World Bank and Asian Development Fund, whom it calls ‘‘preferred creditors.’’ It attributes the foreign exchange crunch to sanctions imposed by western countries following its nuclear tests in May this year.
Reports in the local press have speculated that a delay in the next disbursement under a 1.3 billion dollar IMF package agreed to last month would wipe out Pakistan’s foreign exchange reserves by Jan. 15, 1999 in view of the repayments on its debt. Dar said that the 300 million dollars due to preferred creditors would be paid by Jan. 15 and that the government was chasing every dollar that was in the pipeline. Over the past few months, a large number of exporters have delayed remission of their foreign exchange earnings in view of the expected devaluation of the Pakistani rupee. Dar has said those who fail to remit their earnings by Dec. 31, 1998 will be declared defaulters and will not be eligible to benefit from export finance and other schemes. Dar ruled out the possibility of a devaluation and the introduction of a single exchange rate in place of the current multiple exchange rate.
COPYRIGHT 1998 Kyodo News International, Inc.
COPYRIGHT 2008 Gale, Cengage Learning
Re: Pakistani rupee hits record low.
Dec 2001: IMF says Pakistan loan part of planned $9.5 bln of aid [Archive] - PakDef Forums
Sep 2002: Japan to reschedule $5.3 billion loan to Pakistan | Asian Economic News | Find Articles at BNET
Well said :k:
This ‘aalsi’ kid thinks he can fool some people on the net, but he is wrong, as usual 