far below Pakistan's massive potential, but surprising the country's GDP is growing at all despite the massive failure of the PPP government to deliver on anything.
Pakistan's dynamic private sector is still doing reasonably well - DESPITE the government. Not because of it.
Pakistan had an SBA (standby agreeement) with imf between November 2008 until end-September 2011, when it was terminated by Pakistan just before it was due to expire and without the country having received all of the agreed funds
only around $7b was disbursed (versus agreed upon 12 something).
Pakistan's economic fundamentals remain weak but not alarming, it is possible that the government will be forced to try to negotiate a fresh lending programme with the imf during 2012.......meaning more debt trap for Pakistan
so i'd congratulate Zardari and the PPP government for proving what Pakistanis knew or ought to have known --- that every way they can f*ck Pakistanis and our sacred country - they HAVE!
but at any rate, there needs to be fiscal adjustments....value added tax...income tax reforms...the govt. needs to stop being bullied by emotional twats who burn tyres in the street when diesel prices go up a few paisas......why not just make an address to the nation explaining in simple terms that inflation is almost 9% and that it is only inevitable that prices will go up in rupee terms
but they wont do that....you know why? Because its the govt. that is helping to contribute the most towards inflation (which at the rate its going will approach 12% !!) every time they run to State Bank Pakistan and keep borrowing funds to support their lavish lifestyles and their over-staffed, ineffient, corrupt to the core system.
Pakistanis are always glued to their damn televisions....glued to the internet....so at least use the time to learn and observe. Look at Greece, Spain, Portugal, Ireland.....countries that are being FORCED to pursue austerity measures. Why dont Pakistanis (govt.included) tighten their belts?
solve the external/public debt (or rather keep it under manageable levels) and solve the supply-demand gap in electricity production......67% of the economic challenges would be answered effectively
but anyways - it's amazing that under the current conditions Pakistan's GDP is growing at all....the nation has been resilient.
