ares
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- Aug 29, 2010
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$ 100 Billon 'losses' are not actual material losses, but severely inflated and projected GDP losses.
Basically Pakistani economists take their GDP figures from 2002 and then compare to a projected GDP of 2014,( had their been no WOT) and apply the principle of 'Money not made is money lost' and give us this severely inflated 100 billion figure
But what they do not consider is..
Before WOT Pakistan was under severe sanctions it economy was averaging 2% growth.
After WOT Pakistan started growing 6-7% till 2008(when the world economy slowed down and WOT actually made its way to Pakistani cities).
And this huge growth in Pakistani economy(b/w 2002 and 2008) where it almost doubled was direct result of Pakistani decision to participate in US WOT.
1) Sanction on Pakistan were removed.
2) Pakistan got huge amount of economic and military aid from US.
3) Most of Pakistani debt to multilateral institutions like IMF, world bank etc were either written off or rescheduled with American help.
This freed up Pakistani capital, which was invested and led to a temporary consumer driven growth in Pakistan.
However Pakistani economist do not give heed to economic boom they had due to WOT..just blame WOT on its economy tanking after 2008, which was mainly due to world economy slowing down.
Basically Pakistani economists take their GDP figures from 2002 and then compare to a projected GDP of 2014,( had their been no WOT) and apply the principle of 'Money not made is money lost' and give us this severely inflated 100 billion figure
But what they do not consider is..
Before WOT Pakistan was under severe sanctions it economy was averaging 2% growth.
After WOT Pakistan started growing 6-7% till 2008(when the world economy slowed down and WOT actually made its way to Pakistani cities).
And this huge growth in Pakistani economy(b/w 2002 and 2008) where it almost doubled was direct result of Pakistani decision to participate in US WOT.
1) Sanction on Pakistan were removed.
2) Pakistan got huge amount of economic and military aid from US.
3) Most of Pakistani debt to multilateral institutions like IMF, world bank etc were either written off or rescheduled with American help.
This freed up Pakistani capital, which was invested and led to a temporary consumer driven growth in Pakistan.
However Pakistani economist do not give heed to economic boom they had due to WOT..just blame WOT on its economy tanking after 2008, which was mainly due to world economy slowing down.