Saleem bhai. Very informative post. It just goes to prove Pakistan indeed saw Unprecedented Economic growth, and got itself out of a mess created in pre Great Musharaf era. Let’s hope Pakitan gets back to the glorious days once again. Ameen.
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.
Finally a post I can read. This is the kind of post I have been looking for to educate us so-called illiterates. Can you explain why the GDP increased consistently and may fold during Musharrafs rule. I can understand injections into the national reserves and for that credit must be given to Musharraf, not all or most of it got squandered into the pockets of politicians but infact a lot of it did make it into the national reserves.
I'm sure if the Pakistan had a stable security situation, corporations would even move production units here but no one will invest into an economy that is subject to such volatile political situations and you cannot entirely blame that on one person. Its very ridiculous when it happens.
You mentioned the agricultural sector collapsed but failed to give reasons why and how they relate to Musharraf? As for credit being available in Pakistan where the buying power traditionally has always rested in cash was a big change. You may blame shortcut Aziz but he does not run the institutions that extend credit, if the institutions themselves are willing to gamble then the blame does not entirely rest on a single personality. Bankers who did not think it wise to extend credit to moochers shouldn't have followed the line then.
Finally a post I can read. This is the kind of post I have been looking for to educate us so-called illiterates. Can you explain why the GDP increased consistently and may fold during Musharrafs rule. I can understand injections into the national reserves and for that credit must be given to Musharraf, not all or most of it got squandered into the pockets of politicians but infact a lot of it did make it into the national reserves.
I agree, also is US not "reimbursing" the expenses anymore? Where is that money landing now?
I agree, also is US not "reimbursing" the expenses anymore? Where is that money landing now?
I'll give you three guesses but you may not need that many.
Re: Pakistani rupee hits record low.
As par latest Financial Times report, pakistan's CDS interest has gone up and now now it will need 3 million $ to insure 10 million $ debit given to the nation.
Infact iceland is more stable now and pakistan's chances of going bankrupt has increased to 90% which is not good news.
Businessmen need to spend more within country just like China to build the nation. wasting money on US war is not good way to improve economy. Also if India pakistan can start trade it will be beneficial for both countries as it will save transportation and storage expenses (i'm not economy expert but as laymen i can think that as both countries are geographically connected they can save in those front)
Will there be any side effects of this bi-lateral trade? i'm open to all to hear that..
I agree, also is US not "reimbursing" the expenses anymore? Where is that money landing now?
BB "shaheed" income support cards for the poor! :p :D
Btw, the title should be changed as record low would mean the rupee has HIT the ROCK BOTTOM when we don't know where the bottom is actually! :)
Btw, the title should be changed as record low would mean the rupee has HIT the ROCK BOTTOM when we don't know where the bottom is actually! :)
You need to correct your definition of "record low" :p
Re: Pakistani rupee hits record low.
^ Actually, it could be RECORD LOW [in progress].
But, seriously, how can there be a record of an infinite thign?
Rupee continues to plunge. 
Gulf Times ? Qatar?s top-selling English daily newspaper - Finance & Business
**Pakistani rupee plunges
http://www.gulf-times.com/site/images/spacer.gif
**Pakistan’s roller-coaster currency hit a historic low of 84.5 against the dollar yesterday, hours after the central bank announced that the country’s reserves fell by 6.9% last week, dealers said.
The Pakistan rupee made a slight recovery later and closed at 83.2 to the dollar against the overnight close of 82.
The currency weakened on the report by the State Bank of Pakistan (SBP) that foreign exchange declined by $570mn in the week that ended on October 11.
According to the SBP, at the start of current week the reserves stood at $7.75bn of which it holds $4.43bn.
“Depleting reserves and ever-growing pressure due to import payments are primarily responsible for the sharp slide,” a foreign exchange dealer said. He quoted the rupee at 85.5-86 to the dollar in the open market.
Some dealers in Peshawar, the capital of the North West Frontier Province near the Afghan border, even offered Rs87 to a dollar on Thursday after a severe shortage of the greenbacks when commercial banks refused to make payments in the US currency.
The rupee has weakened by more than 27% against the dollar during the current year.
Re: Pakistani rupee hits record low.
Govt isn't stopping the trade of dollars and other currenceis???
^ Actually, it could be RECORD LOW [in progress].
But, seriously, how can there be a record of an infinite thign?
Let me define it for you:
"Record low" means lowest in record. Just like Crude oil prices record high of $147 dollar per barrel in July, it doesn't mean that this is highest price it can ever go, it just means oil wasn't that much expensive on the records... kuchh pallay para?
Rock bottom would've meant that it is the lowest price Rupee will ever see.
Re: Pakistani rupee hits record low.
^ Pakistan ke different standards hain! :D