Failing Economy of Pakistan! Growing hunger of normal Pakistanis..and New Govt!

[batmannow]

DEAR, FELLOWS... i want to get, your opinions and your ideas... on a most important issue of the day?
new govt already in power! most of the minsters sitting in thier offices, but for a common man situation of national economy is geting dangerous and new govt. still cant have any directions..... to help normal citzens of pakistan, or nothing is being done or at least said to adress the prices of atta, sugar. rice, petrol, even..... DAAL.. salt..... you name it , any thing ! already gone beyond the normal man reach..... ?

WHAT IS THIS GOVT. IS DOING FOR THE COMMON MAN AND HIS LIFE?
ALSO, WHY NOT? PAKISTANI.. MEDIA NOT TURNING ITS CAMMERAs ON THESE ISSUES?

DOES, MEETINGS IN DUBAI..... FOR THE RESTORATION OF JUDGES.... IS MORE IMPORTANT?

OR, CANCELLATION OF BY ELECTIONS IS THE ISSUE, WHICH COMMON PEOPLES ARE LOOKING??????


ALL, GOOD AND LOGICAL VEIWS AND IDEAS ARE WELCOME?

I HOPE THAT THIS THEARD WILL , GOING TO CHANGE A LOTS OF MINDS.

THANKS

 

[Neo]

Pakistani economy took a nose dive after the assassination of Benzir and it hasn't recovered yet due multiple issues governent is facing. Give her 100 days to come up with a rescue package. In the mean time budgetary reliefe is promised by KSA, China and USA.

Despite political instablity we'll still record a growth of around 6.5%.

 

[Neo]

Dar briefs S&P about efforts to streamline economy ​

ISLAMABAD (May 06 2008): Finance Minister Muhammad Ishaq Dar has told the Standard and Poors, the credit rating agency, that Pakistan is making all efforrts to streamline the economy David T. Beers of Standard and Poors called on Ishaq Dar in Madrid on Monday, and discussed the macro-economic situation in the country, especially imbalances caused by food and oil prices, according to a message received here.

The Finance Minister apprised the credit rating agency of the government's efforts to streamline the economy. He said the next finance bill would definitely focus more on revenue generation, targeting subsidies for the poor and bringing the central bank borrowing in its place.

Ishaq Dar said: "We are focusing on credible database. Our special stress will be on agriculture and manufacturing sectors". He added that credit would be made available to these sectors with a view not to subsidising but for efficient management of these sectors.

For agency: "We are preparing an energy plan, but we need infrastructure support", he added. Dar stated that "our budget was doubly hit; one by increase in prices and the other by price adjustments." The subsidies were not budgeted properly in the past, he observed.

On the bond issue, the Finance Minister stated that "we still have appetite for the sovereign bond but the question is of the pricing. "Price has improved and we are considering the issue. We are not interested in exchangeable bonds", he remarked.

The Finance Minister also spoke about the current prices shocks being faced by the developing countries in general and the South Asian countries in particular. He stated that the achievements made so far by developing countries for MDGs might be eroded due to price increase in food and oil, and proposed the Saarc should discuss the issue in the forum to find out solutions.

On Pakistan's intervention, the Saarc forum was moved to consider the proposal, which was approved to become part of agenda of the next Saarc Finance Minister's meeting. Heads of the Nordic Investment Bank (NIB) and European Investment Bank (EIB) also held separate meetings with Ishaq Dar separately. Both the leading banks showed their keen interest in extending financial assistance to Pakistan.

The NIB showed its interest in providing financial support in power sector. Ishaq Dar welcomed the NIB's offer and invited them to finance hydel projects. To facilitate their investment, a financing framework agreement will be concluded between the NIB and Pakistan.

The EIB, which is a European Union investment institution, also expressed their desire to the possibilities of financing projects in Pakistan in viable public and private sector projects in infrastructure, industry, agro-industry, mining and services.

They expressed their keenness for partnership with other multilateral development banks, especially ADB with focus on electricity generation projects as co-financier in joint venture projects. Dar asked the EIB to finance hydel projects, especially Basha Dam, in a consortium with other banks and financial institutions.

He also asked the bank to help Pakistan in energy management, ie energy conservation and efficiency. A team, of HSBC also met the Finance Minister and discussed the possibility of HSBC's participation in the government bond issue and operations of HSBC in Pakistan.

State Bank of Pakistan Governor Dr Shamshad Akhtar also joined the meeting. The Finance Minister also appreciated the keenness of HSBC for the future government issues and their operation in the banking sector in Pakistan. He stated that the new government was making a policy review to avoid pressure on foreign exchange reserves in future.

"We are keen in medium to long term gains instead of short term benefits", he remarked. The HSBC team showed keenness in expansion of their operations in Pakistan. The SBP Governor stated that HSBC should also come into the small and medium enterprises (SME) sector.

She said that Pakistan was the most liberal regime in banking sector policy and regulations in the whole of Asia. The HSBC acknowledged that Pakistan was a great potential market for investment. Director General of Asian Development Bank Juan Miranda and his team also met the Finance Minister.

Miranda confirmed that ADB had already disbursed 300 million dollars and by June 2008, another up to 650 million dollars would be disbursed. The SBP Governor, who also attended the meeting, asked the ADB to provide 500 million dollars on Fast Track Basis for strengthening of the State Bank of Pakistan The Finance Minister ensured the ADB team that the reforms in the financial sector would be implemented as agreed with a the ADB.

Dr Shamshad Akhtar, Executive Director Sibtain Fazle Haleem, Ambassador Pakistan in Spain Humour Hasan, Joint Secretary of EAD Zafar Hasan Reza and Commercial Councillor in Pakistan Embassy in Madrid Basat Hayat Tarar also accompanied Ishaq Dar. The Finance Minister also attended a meeting of the Finance Ministers of the member countries of the South Asian Association for Regional Cooperation (Saarc) in Madrid on April 4.

He is currently in Madrid to attend the 41st annual meeting of the Asian Development Bank (ADB), which started on May 3. The meeting, to be concluded on Tuesday (May 6) was held on the sideline of the ADB annual meeting. Earlier two meetings were held in India in 2006 and Japan in 2007.

Business Recorder [Pakistan's First Financial Daily]

 

[sohailbutt]

I agree with Neo

My friend batman, u cannot really say that our economy is failling, in the last few years our economy has maintained a strong growth until the assasination of Shahid BB last december, if u see the economy of Pakistan after that it went down sharply but with the new Democratic Gorvenment things are very fast coming back to normal, when our Judges r restored all the things will naturally come to normal as they were before, because Supreme Court of Pakistan will not be under influence of anyone anymore.

I can garuantee u that this new Govenment will further boost the economy of Pakistan in the next five years, because it is a coalition of different democratic parties of Pakistan, n they together will take stirct actions against sharp price rises (inflation) which have really crushed the poor people of Pakistan, n i m pretty sure they will very shortly bring relief package as Neo said, which will bring things back to normal.

The sharp rise in prices of food n oil cannot be blamed on the new Government because they were really unlucky as they came in power, oil climed to $120 per barrel, also our Country's wheat, flour and many other essential food items were being smuggled into Afghanistan from Pakistan which created shortage of food essentials in Pakistan which naturally raised local prices of food items in Pakistan, in the case of oil u see our Government was really helpless it had no choice but to increase prices.

 

[blain2]

Unless the current government does something really stupid, in all likelihood the economic situation in Pakistan is bound to improve. The FDI will start rolling in as long as the current government keeps on going. The cost of living has gone up in all parts of the world and Pakistan is not alone. Gas prices will eventually come down and that will also have a positive impact on Pakistan balance of payment/trade.

 

[solid snake]

Gas prices will eventually come down and that will also have a positive impact on Pakistan balance of payment/trade.

Do you mean gasoline prices? Because they are never coming down.

 

[z9-ec]

Do you mean gasoline prices? Because they are never coming down.

The current global prices is the main reason behind the ever growing deficit and the falling Pk ruppee

Economists do predict that effective management will be required to curtail the growing deficit and for a turn around.

I do agree with Solid that the prices might not come down for years to come. Although, some people predict a downfall in the prices in a year or so. I'm optimistic.

But, I completely disagree with the thread title. We have managed to successfully curtail the effects of global food shortage and Pakistan's economy is not failling by any means. Nevertheless, better governance, infrastructure and policies of the previous government need to continue to further strengthen the foreign investors confidence in Pakistan.

Did you know?

In January 1999 the Oil price stood at $8 USD per barrel? today it stands at $123 USD.

 

[ejaz007]

Pakistan's economy is not failing but has been hard hit by multiple reasons. Rising oil prices and higher cost of living are perhaps the main reason. Power crisis is also a contributing factor. However bad policies and corrupt practices of eight years can not be controlled in just few months.
Present government should be given enough time to farm out its policies and impliment them. After that based on the situation comments should be made.

 

[niaz]

Germany blamed Indians who are now eating two meals a day on the rising food prices. Bush has also blamed growing Indian and Chinese oil demand for the rising oil prices. Whatever the reason, how is Pakistan going to cope with the scenario where there will be no money left for any development??

Situation in Pakistan is the govt is paralysed because a party with only 20% of the popular vote is trying to hold the nation to ransom on the Judges issue. Our Finance Minister belongs to this party and therefore is not taking any action because he may have to resign if May 12 deadline is not met so he doesnt care if there is flight of capital and rupee value is falling.

This is the greatest misuse of peoples mandate. None of the parties involved including the lawyers give a damn about the general public, because rising inflation doesnot hurt them. Politicians in Sindh and in the NWFP dont care about lack of water because they will not go hungry, therefore they oppose the Kalabagh Dam which will improve food situation in Pakistan.

What is the point of having a supreme court if it means the man on the street is going to starve. I heard in aaj Karmarn key saath that rice and daal price prices have increased by nearly 50% in the space of a week!!.

Despite being a democrat at heart, all I can say that Mr Nawaz Sharif,
Mr Aitzaz Hassan, all the judges and the polticians can go to hell for all I care.

 

[batmannow]

MY, DEAR... WEBY.SIR and dear felows,
dear, fellows.. the point i was trying to mention in this post was actully to, let us think, what was the reason, behind all this SS bombings? why uneducated poor pakistani people were accepting the religion based extremists (TALIBANS)? i.. think the only reason behind that couldbe the hunger! unemployment and.... thier unheard eco- problems.

MY, dear sir, normal pakistanis doesnt understand and they realy doesnt care about the GDP, ADP, the world.. economic growth.....rising prices of OIL and GAS!
common or normal pakistanis doesnt hve the economic IQ, and the know how about growing INFLATION!

all they care and wana know is about the price of just 1 ROTI ,& prices of DAAL ... ATTA.... SUGAR..... VEGETABLS... ETC.normal pakistanis even... they are not intersted in MEAT.. cause its already unreachable to them and it only can be found on the foodtable of rich people.



sory to say, but its reality that all the politicains and politics and political parties...,,,,, and all the pillars of power including JUDGES..... and, EVEN THE PRESIDENT OF PAKISTAN just trying to get power , increase thier power or to save thier power no 1 is worried about the lives of normal pakistanis and it seems that there is no relief for them at all and no hope about thier future and i would like to tell you my, DEAR.. WEBY SIR that normal pakistanis cant afford to buy a urdu newspaper becuse he wanted to save that money for ROTTI...?
IN, THIS grave and uncertain.. eco-situation.. , new govt of pakistan isnt ready to discuss it or at least draw some road map and show to the poor people of pakistan.

what ever, you had,,, written...in your post is correct in its terms but if you realy wanted to find about what a normal or poor pakistani, man thinks about the terms you mentioned in your post SIR, just go to nearst vilage or nearst street, or nearst poor neighbrhood , and ask a real poorman about the situation right now.... i hope you will find, many ready to die.. couse they think that it make the lives of thier family members easy?

FOR, the fellows who had posted about ADB and its positive predictations for pakistan, they can.... read todays... dawn in... which there is a news reportd by a reporter name.... mr, AMIN AHMED... with headings... ADB SEES RISE IN POVERTY... i will be very thankfull to all felows, if they can read this news item.... so they can see the reality. as i am posting this post , i am hearing the programe on geo (AJJ KAMMRAN KHAN KAY SATH) and again today mr, kammran khn reported , that as finance minstry of pakistan is buzy preparing the new budgt finance minster of pakistan is in london assiting his leadership NAZWAZ SHARIF! I GUSS MR, ISHAQ DAR HAS MORE IMPORTANT RESPONSIBLITIES THAN TO ASSIST FINANCE AND ECONOMY OF PAKISTAN?.....

 

[pkpatriotic]

My dear friends......... i am absolutly agreed with the views & info quoted by "batmannow"!
I always talk to friends that, we should be ahead then active and then reactive to be "PROACTIVE" indeed.
Economy:
The inflation rate is uncontrolled with fast upward trend.
Stock market went to down and at the verge to crush, due to uncertain situation of country, Pak-Rupee devalued and today was its exchage rate was 67.20 /US$, State bank had to interven and given US$ 6million to the 'A' class stock exchange companies to support Rupee value.
Mostly foriegn companies taken out their finance from stock market, import are now higher, the remittence from abroad low down, while the Pakistani capatilists transrfered their wealth and invested in Gulf market or property.
Now the it is clear indication to increase inflation & unemployemnt will be more higher, instead to have new investments in different sectors from national & abroad sources repectively, our own Pakistani capitalists took their money out and closed their factories due to unfavorable policies and situation. (Its basically long debate on favorbale & non-favorbale) we need a revolutionary reforms by justifying the factual issues to boost economy. its need special attention of think tanks.
Political Senerio:
Now thsi is not matter that CJ & Company will be restore or not, it may be restore Ok.... but then a relatd hot issue is still in pipe line pending "Musharraf" If Judicianry will be restore and then will take any step agaist Mush then ....... if CJ will not take any action may be due to restricted by contitution amendment ..........so even then Nawaz & company will be remain clashes with him and they keep all their attention on each other which ultimatly diverse the whole govt functionalities........... and let suppose if the Mush will go out of the scene........... then the present collusion will discontinue and its is till the mush is seated, and again there will be new compaign of clashes and diffeences started among each other. in fact, persoanlly i knew that, Mr.Ishaq Daar Finance Minster is not very much keen to make any reform to get rid the issues before their own PML-N government establish as whole.......if you remember in first week of his ministry he stated that....... he will continue previous policies ....... while himself had been strongly criticised previous govt policies and told that, they have to change it to give relief to public, we all also admired that previous policies have ambiguities & flaws including bad governance. so we can understand the delebrated intentions behind the reason of prolongation the previous policies.
I conclude the topic that, we all knows nothing cud be done randomly in a day, it could take time to get results but to the policy which we have made ultimately. as chines proverb.......... “The journey of a thousand miles begins with a single step.” And the
“The beginning is the most important part of the work.” The first step tell the directions and outcomes. so the intiating of our half-hearted finanace minister will not be able to confront the problems to give-up breakthrough, as proclaimed by then and desired by nation.

Here I appology to oppose the idea wait and see........... yes we can wait to see the results if any comprehansive reforms would be their.
I believed we are poor economically just due to lack of leadership and bad- governanace, while we are richest in all sort of natural resources including human talents and hardworking!
If we really wish to be recognized dedicated worthy nation among the globe, we have to take revolutionary steps with good governance and be proactive to assess the matters before happen rather crying after happened!

 

[blain2]

Do you mean gasoline prices? Because they are never coming down.

I am talking about Price per barrel (PPB) of crude oil which is bound to come down from the high of $120 (may go up to even 200) but will come down again.

 

[ejaz007]

Yes, I agree crude oil prices shall come down. Even advanced economies can not afford high price of crude oil. At the moment they are ignoring the high cost because it is not affecting them a lot.
Also one point that I noted is that at the moment middle eastern countries and OPEC member states are buying lots of defense equipment mainly from US and European markets and this is because they have cash due to high oil prices. In the end the cash they earn is going back to the countries that are spending it and is helping their economies grow. Therefore right now they wont mind a lot. When their contractual obligations have been met and orders stop coming then they are going to do something. Lets wait and see when that happens.

 

[batmannow]

THANKS.... A LOT DEAR, PKPATRIOTIC SIR,
i would like to, thankyou... for your.. post which is indeed a gift.. for me, and just to correct some of our, senior fellows, the situation pakistan is facing now, isnt realy concerned much about the cause, that hike in the prices in crude oil, or faling world economy,,, this.. could be just an angle or just a factor.... but real deal in pakistan case is the people in power or people incharge o0f the actions of the govt now today.... and in the past?

for example, everybody.... knows that there is a crupt culture in pakistan.... in the field of trade of genrl use items were in place, scince the days of the creation of pakistan! but nothing had been done till now...... all we heard in the news that...... some times... police raids.... some where.. and take some quantity of sugar....rice..... atta...... cooking... oil... in there custdy.... and these stocks were kept under some whrhouse..... to make the prices of these basic super HIGH.
MY, DEAR FELLO0WS, i am sorry to, write this but its a hard fact, that pakistan doesnt have the real.... and composite policy....... regurding the blackMARKETIORS.....; SELFISH... STOCKIST, no real crackdown... ever been done.... why?
all bieng said good ,, and thought good ! for the ECONOMY OF PAKISTAN, but the fact remains.... intact , that all thses... ECO-FORCASTs could be changed in a blink of eye, for unknown and unseen... reasons, maybe some natrual disasters like..... EARTH QUAKE, CYCLONES........ or unthought conflicts....... like... wars? etc.?

as... comman man.. starving.. to get bread for his family...... our leaders... were in meeetings to free... the bogass judicial system & kicked out judges, they doesnt care starving pakistani.... nation.... just look thier actions, DUBAI MEETING.... NOW LONDON, MEETING....... even.. for 1 to1 meetings they never chose pakistan, some of them.. says, that they had family reasons,... some show sickness to go london....... WHAT IS GOING ON????????