absolutely disagree, govt policy defines the future of a country. i think u should look frm the boarder perspective. u should also taken education policy, foreign policy, monetary policy, fiscal policy, internal and law order policies. apart from floods all the other is due to government policies. look USA fed the taliban and they got the taste in 2001 after 15 years, similarly for paksitan. in 1970 china started the liberalization and now they are getting beniffited. so today's problem may be bcoz of 20 yrs back polices.
Pakistan's growth fell sharply in 2008-09, and while IMF has projected an improvement in 2010-11, the structure of the economy suggests achieving this will be an uphill task.
Manufacturing is down to a two-year low and GDP is largely driven by agriculture - the contribution of the manufacturing sector was negative in 2008-09 and 2009-10.
Credit to the private sector is down 5 per cent as compared to a year ago; investment-to-GDP ratios are a low 19 per cent; and current account deficit could be around 4 per cent of GDP.
Inflation is running at 13.26 per cent, foreign investment is down from $5 billion in 2007-08 to $3.5 billion in 2008-09 to $2.5 billion in 2009-10, the list of negatives goes on.
This decline in economic performance comes after five years of good performance during the Musharraf years. Musharraf inherited an ailing economy with less than $1 billion in foreign reserves; debt was 82 per cent of GDP; and 35 per cent of government revenues went towards debt servicing.
Economic sanctions implemented in the wake of Pakistani nuclear tests conducted in 1998 had hurt too. Musharraf turned things around and economic reforms were undertaken. In late 1999, he told his people: "The revival of the economy is critical. Our economy is in deep trouble and revolutionary steps are needed to put it back on track."
He introduced austerity measures, increased accountability and rebuilt investor confidence in Pakistan. By allying itself with the US post 9/11, Pakistan under Musharraf was able to end the nuclear sanctions against it and increase the flow of money into the country.
In the three years preceding 9/11, Pakistan received $9 million dollars in aid from the US; in the three years post 9/11, this number climbed to $4.8 billion.
Good economics and good relations with India helped Musharraf deliver an average growth rate of close to 6 per cent during his six years in office. After Musharraf, Pakistan has suffered from a protracted decrease in investments in civil society. The private sector remains almost non-existent.
Exponential population growth puts pressure on power and water sources, while the high rates of inflation make everyday living harder for the average Pakistani citizen. Furthermore, Pakistan is highly dependent on remittances which are an unstable form of revenue.
The Main main reason for Pakistan's continued economic decline is the absence of a clear cut financial policy which is mainly due to the fact the the policy makers do not have adequate knowledge on how to operate a national economy. They are short sighted and do not take many factors into account when changing key market regulators. The problem always start on top and then trickles down. Having a solid Financial and economic plan is key for any economy to grow, that is why the Government is the deciding factor for a country.
