Pakistan is broke. That’s the long and short of it. Rating agencies are cutting Pakistan’s ratings left and right. Its got 1-2 months of FX left, it will miss its obligations unless massive external funding is provided now.
Poverty has left 10-20% even, spurred by inflation and a rupee that is not worth the paper it is printed on. Relative purchasing power has fallen per capita income from c. $1000 to about $750.
FDI has ceased, indeed capital flight is the norm.
Part of this is oil price crisis, others are the inability of the govt to establish writ or move along that path, and finally there is no international confidence in Zardari, he has scared investors away.
Pakistan will soon collapse like Argentina did in 1999-and faces some harsh realities.
Imports will have to be slashed. This means import substitution economics for all good in can be viably applied to. The Hispanic nations did it, the East Asians did it. We tried to run before we can walk, now we are cripple. The sick man of Asia.
Anti inflationary steps are a must, whatever the human impact.
Pakistan has no choice but to leave the WoT. Its will cause huge FP concerns and sanctions (all the more reason for point 1), but the alternative is that Pak becomes a bloodbath, a killing field. Sanctioned but safe it a better situation. 70% of Pak lives in villages, they are usually pretty self sufficient (subsistence farmers).
Massive export drive needed, export to Africa, Asia and Latin world. Pak has wrongly tried to live in the West’s behind, and has gained nothing. We must adopt a look east policy in all fields, esp economics and politics.
Only a Gen. can implement these harsh steps. Pakistanis have shown that most are too ill educated for democracy to be fruitful, when you elect thieves, you cannot expect a good show. So I plead with the COAS, Pakistan needs stability and a strong hand now.
Part of this is oil price crisis, others are the inability of the govt to establish writ or move along that path, and finally there is no international confidence in Zardari, he has scared investors away.
Please revisit Pakistan pre 2008 and tell us how army/Mush were able to establish writ, how they were able to keep/invite investors to Pakistan.
It was infact the inaction of same army/ISI, double game of Mush which has brought Pakistan to this point. It is the very misadventure of an armyman to stick to the power seat which caused havoc in Pakistan in 2007 which accelerated his downfall. What guarantees Kayani has that he won't do any worse than Musharraf? After Mush's credibility went down last year it wasn't just his own credibility but also Pakistan's army/ISI credibility. Even if Kayani takes over nobody is going to pay attention, FDI is not going to shoot up (may be some short term gamblers).
**Anti inflationary steps **are a must, whatever the human impact.
Something that even "modern/1st world" is struggling against!
Pakistan has no choice but to leave the WoT. Its will cause huge FP concerns and sanctions (all the more reason for point 1), but the alternative is that Pak becomes a bloodbath, a killing field. Sanctioned but safe it a better situation. 70% of Pak lives in villages, they are usually pretty self sufficient (subsistence farmers).
There is no way Pakistan can now back out of WoT, Pakistan is between rock and hard place.
Massive export drive needed, export to Africa, Asia and Latin world. Pak has wrongly tried to live in the West's behind, and has gained nothing. We must adopt a look east policy in all fields, esp economics and politics.
Definitely Pakistan needs to do that but what is the buying power of Africa, Latin world, Asia? I don't know what different products we manufacture that they don't!
Only a Gen. can implement these harsh steps. Pakistanis have shown that most are too ill educated for democracy to be fruitful, when you elect thieves, you cannot expect a good show. So I plead with the COAS, Pakistan needs stability and a strong hand now.
What does he know about economic policies? He is an armyman not an accountant.
Army can interefere just to clean the mess in Northern Areas, Provide TIT FOR TAT answers to the countries interfering in Pakistani territory ( ofcourse using its spy agencies). Thats what their main role, thats why we give them a huge budget and thats why they are their.
Faliure in above, what garanties are there that they will be successfull in the roles for which they have no training at all.
The government is engulfed by crises left behind by Pervez Musharraf, the military ruler who resigned the presidency in August. High oil prices have combined with endemic corruption and mismanagement to inflict huge damage on the economy.
While Mr Musharraf’s prime minister, Shaukat Aziz, frequently likened Pakistan to a “Tiger economy”, the former government left an economy on the brink of ruin without any durable base.
I dont agree with any army rule again the country, but these lot need to learn quickly how to govern acountry. bunch of mish mash potatoes!
still crying about the last government, try to make difference from the last corrupt government will help. but seems like the new government dont know what to do, a professional team is not in place but just bunch of cronies and friends ie rehman malik, sherry rehman both wasnt elected but installed as ministers.
by hook or crook last corrupt government actually done well for Pakistan barring last year when everyone was on the otherside and wanted them to go.
last governement also created and added funds to the reserves, but this one only know how to loose them and in couple of months unless someone give us some charity or high interest loan Pakistan will default.
I dont agree with any army rule again the country, but these lot need to learn quickly how to govern acountry. bunch of mish mash potatoes!
still crying about the last government, try to make difference from the last corrupt government will help. but seems like the new government dont know what to do, a professional team is not in place but just bunch of cronies and friends ie rehman malik, sherry rehman both wasnt elected but installed as ministers.
by hook or crook last corrupt government actually done well for Pakistan barring last year when everyone was on the otherside and wanted them to go.
last governement also created and added funds to the reserves, but this one only know how to loose them and in couple of months unless someone give us some charity or high interest loan Pakistan will default.
Unfortunately, the Unprecedented Economic Growth, and the Unprecedented amount of Foreign Reserves that Pakistan has been seen until last year are now thing of the past. :(
The continued inactivity by the government since Feb 2008 (except for renaming of a few places with BB's name) has been very sad.
Plsss...no more Army govt cry! Havent we learned anything from the last 3 dictatorships?
This is the real misery of Pakistanis. Either they re-elect corrupt, incapable, already tried politicians or they call Army to make a overnight coup and start anther 8-11 years tenure of cruelty, injustice, anarchy and economic failure.
Pakistan's economy is to some extent linked to the Oil Prices but is not directly proportional to other economies / stock markets. We have seen Stock Markets all around the world plunging to new lows while KSE recording new highs for quite some time.
Political in stability and suicide bombing by some wahshis is the root cause for this terrible situation.
Please, Mr. Kiyani step in just like we so wanted Musharraf to step in ... then, you will be one more dictator in few years, then, we will be against you and will bash you like we did all previous military leaders, good or bad, and then, you will go, a new govt. will come and we will be begging our next COAS to step in... The show must go on and we'll live happily ever after again and again.
Please, Mr. Kiyani step in just like we so wanted Musharraf to step in ... then, you will be one more dictator in few years, then, we will be against you and will bash you like we did all previous military leaders, good or bad, and then, you will go, a new govt. will come and we will be begging our next COAS to step in... The show must go on and we'll live happily ever after again and again.
Yes you are right.......
Kiyani or some one else will step in; people will get excited at the intervention; people will bash who ever steps in and force him to resign.
New elections will be held; new government will be formed; same old 'choors' will be back; people will be dancing and celebrating in the streets in the hope of roti kapra makan; political opponents will get slapped in the face by 'chapal'; same old problems will continue........and the cycle carries on.
Once Henry Kissinger said of General Noriega of Nicaragua (I think):
"He may be a son of a blTcH, but he is our son of a BlTcH"
The same applies to the Chors like NS & AAZ. Put them in power , give them authority and it all becomes their problem. They have shown their ingenuity in ripping off billions from the nation, they ned to show the same to fill the empty coffers (before they take their pound of flesh from it) !!
Once Henry Kissinger said of General Noriega of Nicaragua (I think):
"He may be a son of a blTcH, but he is our son of a BlTcH"
The same applies to the Chors like NS & AAZ. Put them in power , give them authority and it all becomes their problem. They have shown their ingenuity in ripping off billions from the nation, they ned to show the same to fill the empty coffers (before they take their pound of flesh from it) !!
I do not think that West or USA wants any pound of flesh from Pakistan. They only want to see Pakistan economically dependent on them. During last 8 years, the way Pakistan was progressing and was getting economically independent was obviously undesirable for these powers. So they paid their goons in Pakistan Judiciary to do bhangra on road, Journalists to do propaganda from all Pakistani influential media outlets, corrupts of civil society and NGOs on their pay roll to make noises, and Politicians in their pocket to support their these agents destabilising the country, with sole purpose to misguide people, and bring western political agents in power again, so that Pakistani economically can get destroyed or brought back to right level through them, where Pakistan becomes a country completely dependent on west again.
^ Is that why Mushy was selling pounds of flesh to them, for some moolah? Keep in mind he admitted that in 'in the line of crap', his book.
Reward payments to hard working law enforcers of Pakistan who risked their life on ground to arrest wanted foreign criminals is not 'pound of flesh', it is just rewards for poor employees of law enforcement agencies by those (Americans) who wanted those criminals.