Hunger and Poverty in Pakistan Declined During Musharraf Years

[syed999]

PPP's government, in an MOU with the IMF, hailed the performance of Pakistan's economy under President Musharraf's watch as follows:

"Pakistan's economy witnessed a major economic transformation in the last decade. The country's real GDP increased from $60 billion to $170 billion, with per capita income rising from under $500 to over $1000 during 2000-07". It further acknowledged that "the volume of international trade increased from $20 billion to nearly $60 billion. The improved macroeconomic performance enabled Pakistan to re-enter the international capital markets in the mid-2000s. Large capital inflows financed the current account deficit and contributed to an increase in gross official reserves to $14.3 billion at end-June 2007. Buoyant output growth, low inflation, and the government's social policies contributed to a reduction in poverty and improvement in many social indicators". (see MEFP, November 20, 2008, Para 1)

Musheraff was in power for 10 years, so doubling per capitia income in 10 years is not such a great achievement. Also the Oil Crises in 2009 burned pakistan, musheraff govt spend billions of rupees subsiding petrol, so when price of oil went up govt went bankrupt. Musheraff delayed important decisions. Musheraff also built power stations which use expensive furnace oil which was costly because of subsidies instead of looking for alternatives like LPG or Iranian Gas. PPP inherited the economic issues like Obama did, however PPP had chance to fix but did nothing. Musheraff had 10 years of total control and did nothing to increase tax base or get some Trade deal with EU or America. No they both hate us and we have nothing to show for 10 years of service

as said earlier cant we modify the whole govt and appoint Mushy at the same position as khomeni in iran?

we need 8% growth of 2005 again for atleast the next 5 years

Pakistan would still be growing at 8% if it was not for War on Terror spreading to urban areas which has led to FDI falling from 8 billion to 500 million, even with the energy crises Pakistans growth was 4.1% in 2010. Indias economic growth with near national unity federal govt and no law and order problems and lots of love from western media and govts is still around 4%.

FUTURE

The danger is Pakistan Fiscal Deficit is around 8% of GDP and Govt has been borrowing at 12% Interest rates in Dollars and Rupee is loosing value. Greece went bankrupt when interest rates hit 8%, so Pakistan has major issues an IMF bailout seems very likely . Imran Khan will have to impose some sort of 1 off wealth tax on property around 2.5% to avoid IMF slavery. If PIA and other loss making industries can be returned to profit and FDI goes back to pre 2005 levels then deficit should be under control and future is bright.

 

[INDIC]

PPP's government, in an MOU with the IMF, hailed the performance of Pakistan's economy under President Musharraf's watch as follows:

"Pakistan's economy witnessed a major economic transformation in the last decade. The country's real GDP increased from $60 billion to $170 billion, with per capita income rising from under $500 to over $1000 during 2000-07". It further acknowledged that "the volume of international trade increased from $20 billion to nearly $60 billion. The improved macroeconomic performance enabled Pakistan to re-enter the international capital markets in the mid-2000s. Large capital inflows financed the current account deficit and contributed to an increase in gross official reserves to $14.3 billion at end-June 2007. Buoyant output growth, low inflation, and the government's social policies contributed to a reduction in poverty and improvement in many social indicators". (see MEFP, November 20, 2008, Para 1)

http://www.imf.org/External/NP/LOI/2008/pak/112008.pdf

Haq's Musings: Musharraf's Economic Legacy

What about Pakistan's economic condition between 1999-2001 when American financial aid wasn't coming to Musharraf.

 

[RiazHaq]

In the 1990s, economic growth plummeted to between 3% and 4%, poverty rose to 33%, inflation was in double digits and the foreign debt mounted to nearly the entire GDP of Pakistan as the governments of Benazir Bhutto (PPP) and Nawaz Sharif (PML) played musical chairs. Before Sharif was ousted in 1999, the two parties had presided over a decade of corruption and mismanagement. In 1999 Pakistan’s total public debt as percentage of GDP was the highest in South Asia – 99.3 percent of its GDP and 629 percent of its revenue receipts, compared to Sri Lanka (91.1% & 528.3% respectively in 1998) and India (47.2% & 384.9% respectively in 1998). Internal Debt of Pakistan in 1999 was 45.6 per cent of GDP and 289.1 per cent of its revenue receipts, as compared to Sri Lanka (45.7% & 264.8% respectively in 1998) and India (44.0% & 358.4% respectively in 1998).

Haq's Musings: A Brief History of Pakistani Economy 1947-2010