What ails our economy

Society Pakistan & World Affairs
1

it is surprising to know pakistan’s economy was better during
nawaz period

It may be of interest that during the Nawaz government, GDP increased from 1.7 per cent (1997) to 4.2 per cent (1999), despite the sanctions clamped on Pakistan in its last year. While we may have succeeded in reducing the fiscal deficit and inflation, we must squarely face the problems of low growth, low levels of investments and savings, stagnant exports, and the growing poverty crisis.

Pakistan is the only economy in South Asia whose Gross National Income (GNI) and per capita income have shrunk in the last five years. Pakistan’s per capita income has declined from $480 in 1997 to $420 in 2001 and GNI from $62 billion to $59.6 billion.

India’s per capita income during this period increased from $380 to $440, Bangladesh’s from $340 to $370, and Sri Lanka’s from $790 to $830.

http://www.dawn.com/2003/03/05/op.htm

2

I hate it when people dont source their stats. You can never ascertain whether they are right or wrong. Plus as this is an opinion, you cant even be sure that the stats arent made up.

3

The NS gov had a history of fudging figures. But, the cost of living has risen sharply during Mush's government. So much for hitting rock bottom in 1999.

4

So i have heard. I have also heard of hyperinflation that makes no sense. Things are getting more expensively weekly. Any knowledge on the financial situation with regard to liquidity and forex?

5

They keep saying that the paki economy is in a much better state than it was before the coup and that it is progressing....but the point is....have hte lives of the people become easier??....there is no point in the economy improving if it does not have a good effect on the people of Pakistan!
has there been any positive change in the lives of the people?....i dont think so....then what is the point of our economy improving if it isnt going to help the people.

6

[QUOTE]
*Originally posted by Bilal_Tarar: *
has there been any positive change in the lives of the people?....i dont think so.....
[/QUOTE]

well the rampant violence that was a daily occurence in Karachi back in early 90's is gone. Not that all is well but its clearly improved significantly.

self actualization comes last, lets see how the basic survival has improved.

7

Just a comment, I like Ahsan Iqbal. He seems well intentioned, and he writes well, isn't a lota either. But he's a die hard Nawaz Sharif loyalist. So he's not exactly objective.

The best place for stats would be the Business recorder.

8

OK here is one from Business Recorder.

RECORDER REPORT
KARACHI (January 05 2003) : The Adviser to the Prime Minister on Finance, Shaukat Aziz, said here on Saturday that in the first six months (July-December 2002) of the current financial year, all key economic targets, such as revenue collection, government borrowings, and overall budget balance had achieved their set targets.

In the press briefing at Karachi Stock Exchange (KSE), marking the historic milestone of ‘Best Performing Stock Market of the World’ despite a series of domestic and external shocks such as unprecedented drought, the events of Sept 11 and the military build-up of India, Shaukat said that Pakistan’s economy had made commendable progress during the past three years.

Aziz said that the government for this period had set the target of Rs 199.5 billion for tax collection, net government bank borrowing minus Rs 7.9 billion and over budget balance minus Rs 106.7 billion.

“As a result of better performance of CBR and prudent fiscal management by the government, I am happy to state that we have not only achieved all the above targets but, in fact, have over-performed,” he added.

By the end of December, Aziz said, the revenue collection was Rs 200.5 billion. More results, he said, were coming, as in direct tax time is needed to collect. It is expected that it would be over Rs 201 billion. He said that the net-government bank borrowing is minus Rs 38.6 billion and overall budget balance is minus Rs 106.6 billion.

Aziz said that the country’s foreign currency reserves were at $9.335 billion on December 31, 2002, against $ 4.921 billion on December 31, 2001–an increase of $4.414 billion in one year.

The reserves are sufficient to finance ten-and-a-half months’ imports; exchange rate is stable; inflation is low and interest rates are declining; domestic and external debts have declined; expatriate Pakistanis are bringing their capital back; stock market is buoyant and external balance of payments has improved.

These economic achievements owe heavily to sound economic policies, good governance, and deft economic management.

This fact is, by and large, accepted by stakeholders within and outside Pakistan, Aziz said.

Copyright 2003 Business Recorder (http://www.brecorder.com)

9

http://www.fortune.com/fortune/investing/articles/0,15114,424705,00.html

INVESTING
Pakistani Premium
The Karachi stock exchange is one of the hottest markets in the world right now–and also one of its most volatile.
FORTUNE

Thursday, February 20, 2003
By Nicholas Stein

It’s a country known as a haven for militant Islamic terrorism. And the government continues to engage in a dangerous game of nuclear brinksmanship with its neighbor. Yet Pakistan’s largest securities market, the Karachi stock exchange, enjoyed a 118% return in 2002–the best by far (Prague’s PX 50, up 38%, was second) of any index on the planet. And it wasn’t a one-year fluke: The KSE has trounced both the New York Stock Exchange and the S&P 500 over three and five years.

10

I doubt GDP figures as writer is a former MNA and didn't mention his/her name. :)

11

Abdali chanda, how much market capitalization does the KSE have? and how many pakistanis reap the benefits of the capital gains.

thanks,

CH

12

Pakistan's economy macro-economically is doing quiet well..the present governments policies are great... but even a mediocre economics student can tell you that there is a huge lag between policy and effect. I heard comments regarding inflation.... Pakistan's inflation is quiet low atleast looking at the past of hyerpinflation days of NS and BB... also I won't deny that oil prices may make the inflation artificially high..but government can't do much about it....... the last comment regarding KSE....first of all stock exchange is just a measure of how well an economy is doing...but not really an exact measure.... the market capitalization will increase now that the GOP has removed restrictions regarding state enterprises from entering....

13

chaltahai :wave:

teri neend poori hogai :slight_smile:

14

[QUOTE]
*Originally posted by Chaltahai: *
Abdali chanda, how much market capitalization does the KSE have? and how many pakistanis reap the benefits of the capital gains.

thanks,

CH
[/QUOTE]

Ironic isnt it that you use the same arguements i used a couple of months ago in chat to say that the KSE is no indicator of growth.

15

No the irony is that you asked me whether stock markets are a good indicator for gauging the economy. And I had told you that it is one of many and brought up the market cap and public invesments basewd on percentage. Wah ji wah....next thing you are going to say is that You invented the internet!!! :)

16

What a sad memory we have. If you check a thread started by PA or PT about the Pakistan economy you posted there that it looks on the up. It isnt. Oh well. Some just dont have it.

No i invented sarcasm. Get it right next time.

17

Ah yes Chaltahai beta you should read the article very carefully there are quite a few more from bad Paki and international sources. The dude is talking about the growth not the size... 118 percent growth and still going strong... economy from 2.5 percent to 3.8 and projected between 5 to 6 percent in 2004/2005 are all positive signs.....

Wait, thats not all when we hit 5+ percent we will start demanding UNSC membership and once in a while will land on the moon. We should have done that when we had a chance.... LOLz....

Badsha & CM good feedback..... ;)