Pak's economy nosedives, inflation at 19.2%

Society Pakistan & World Affairs
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No need to panic. Inshallah, Pakistan will soon get back to the heights of the Unprecedented Growth seen until last year.

Pak’s economy nosedives, inflation at 19.2%

Pakistan’s economy has been in free-fall mode in the first 100 days of the new coalition government, with inflation at 19.2 per cent, reserves plunging by $2.1 billion and the rupee depreciating by Rs 8.3 against the US dollar.

Public debt during this period has swelled by Rs 373.5 billion or by Rs 3.70 billion per day, The News reported Tuesday, saying “these shocking disclosures based on hard facts were gathered after deep investigation”.

Pakistan’s external debt stood at $45 billion as on March 31, 2008, but the rupee depreciated by 11.7 per cent during the March 31-July 7 period, translating into a massive increase in the public debt by Rs 373.5 billion.

Quoting a top official of the finance ministry, The News said every rupee the Pakistani currency depreciated increased the public debt by Rs 45 billion.

Market capitalisation had massively deteriorated by Rs 933 billion from Rs 4,623 billion on March 31, 2008 to Rs 3,690 billion now.

The stock exchange went down by 3,248 points or 21.5 per cent, from 15,126 on March 31, to 11,878 on July 7 “just because of the non-availability of required political stability which guarantees economic activities in the country”, The News said.

Inflation has also “massively increased” up to 19.7 per cent from 14.1 per cent before the installation of the coalition government, it added.

The fast deteriorating economic indicators show that the economy is not on the radar screen of the government. This is quite evident from the fact that there is no resolve in the corridors of power to provide stable, cohesive political environment to handle the current economic challenges the country is facing," the newspaper said.

“Furthermore, there is total lack of desire from political leadership of coalition parties enjoying power in the country to face the challenges,” it added.

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Aalsi,

Isn't Mush and Shortcut Aziz responsible for this miserable situation? May be Saleem guy can give 1000 pages of explanation blaming PPP+PML (N) duo :)

Phyisical Traits in Rishta
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Re: Pak's economy nosedives, inflation at 19.2%

LOL... in any democratic country the government and its supporters always tries to blame the previous government for its issues. You blame the previous government for anything that goes wrong and try and take credit for anything that goes right yourself.

Musharraf and Aziz and their supporters on this forum blames Nawaz and Benazir for the state of the economy when they took over. Now Zardari and his supporters on this forum will blame Musharraf and Aziz. It's the beautiful cycle of government change... the same as in any country.

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sherdil123 bhaijan. Aap kaisi kaisi baoli batan kartay mian. :)

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But Musharraf has also blamed the previous Govt! :hehe: Basically hes trying to make Shortcut Parachute Aziz a scapegoat to score some points with the PPP, which he needs to do so for them letting him continue office.

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Again, you’re supporting in in politicking. Governments always blame the previous government to score points with the public, just as Musharaf is blaming Azis to score points with the PPP.

The KSE’s long-term performance is the best witness to the previous government’s performance, as a measure of the health of the private industry sector (which, socialist dreams aside, is pretty much proven by history to be the engine of long-term economic growth in all countries).

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Its coming out of Musharraf's mouth, so it has to be right, who am I to question the great dictators word!

I know our economy was in a sad state of affairs in 1999, but I dont buy that crap about Shortcut's inflated numbers either.

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Alhamdulilallah. God Bless the Unprecedented Economic Growth seen over the 8 year period ending last year.

Inshallah, Pakistan will reach the same heights again in the future. :k:

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God blessed it alright, which is why those responsible for the ‘unprecedented’ mess of 8 years are now living abroad refusing to come back and take responsibility for their actions, after being denounced by his party members and president. :k:

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Spock Bhaijan. It is a great time to send your dollars to Pakistan, whilst the Unprecedented Economic Growth has come to a somewhat abrupt end, you will get lot more rupees for your dollars. But fear not, Inshallah things will reach the same golden heights again as seen up to the 8 years leading to 2008. Give Great Zardari a chance.

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Pakistan's economy is in shambles and it is fully understandable. Instead of taking a single step towards improving economy or fight terrorism, the government is instead focused on finding means to take out the president and install Iftikhar Choudhry.

As usual, our leaders are more concerned about their likes and dislikes rather than feeling the pains of common people.

Sad part is that the free media also does not ask the government about their misplaced priorities.

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Is that the best you can do? :hehe:

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The present PPP Govt is doing nothing to restore the judiciary or remove the illegal president, that is what the people want, not the Govt.

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Brother, you want 1000 pages of explanation … but I know you do not like that, so why ask? :).

Anyhow, the way Pakistani economy is getting managed, 19 percent inflation is just a start. It is possible that we might see inflation rising higher and it may even last long. Here is Pakistan inflation figures over last 16 years (1991-2007).

Yearly Inflation Rate - Federal Bureau of Statistics

CPI is real inflation and SPI (sensitive price inflation) is inflation related to essentials (food and essential goods) that affects poor most.

One can see that during 1991-1999 (8 years of NS and BB rule), SPI was above 10 percent 6 times (max 15.01 percent) and CPI (consumer price inflation) was above 10 percent 5 times (max 13.02 percent).

During last 8 years (from 1999 to 2007), though SPI was higher than 10 percent twice (max 11.55 percent), CPI never went above 10 percent (max 9.28 percent).

Similarly, WPI (wholesale price inflation) was 4 times above 10 percent during 1991-1999 (max 16 percent) but WPI only went above 10 percent once during 1999 to 2007 (max 10.1 percent).

So, such inflation figure, above 19 percent, is quite unprecedented. I believe this figure is unprecedented in Pakistan history. Consequence would be devastating for Pakistanis, but that is what they voted for and that is what they deserve.

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Nawaz is a part of current government.

I agree that current government is doing NOTHING about ANYTHING. Inflation is touching the roof, terrorists are ruling the roost, Musharraf is not budging, and Iftikhar can only muster long marches.

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Re: Pak's economy nosedives, inflation at 19.2%

No hes not... Maybe you are forgetting hes not part of the Federal Govt. He is as much in power as the MQM is.

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You shouldn't forget about the "political stability" factor playing in KSE index's rise or fall. Currently the saga of attempting to remove Mush/restoring judiciary is causing a political conflict and no one knows whats going to happen in the country, who will call for strikes and what they can do (something like May 12 or Dec 27). This uncertainty is the cause of nose-dive of the apparent economic indicators, however we know already how the prices of edible goods were going up in past years.

May Allah swt knock some sense in our so-called leaders (elected/self-imposed), may they unite for people and the country instead of fighting for their egos.

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So does the credit go to Musharraf, Shaukat Aziz or PML-Q?

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Re: Pak's economy nosedives, inflation at 19.2%

all is because the country is looted by corrupt people - contractors and bidders.
ho wonder the affluent have so much ambiance in their properties, but the country is -sacked shamelesssly.

Wht r u doing ?
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Please elaborate, are you suggesting that "current" govt is busy in looting or are you including (all) past govts as well? Thanks.

Wht r u doing ?