Monday, March 8, 2010

where's our economy headed??

We are daily bombarded with news of how miserably our economy is performing; be it the energy sector, sugar crises or the black market.What according to you is our economy's major setback??

17 comments:

  1. i think because of the continuous political instability from the past 2 decades, foreign investors has lost all interest in the current market...that is why we see a low FDI and more FPI! Investors are not looking to get their money tangled in any long-term project as they don't trust the political scenario which is hitting the development process pretty badly!

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  2. Mariam,
    Good idea,I will come back when some thing get's started.

    Best of luck.
    Munir

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  3. i think, so called War on Terror announced by Americans after 9/11 in Afghanistan and later on Drone Attacks in Wazirastan hit Pakistan's economy severely. Political Instability and politically influenced economic policies are drowning down country's net worth each day. Corruption is another major contributor. All these things are making investors feel insecure, hence no foreign investments and local investors are taking away their wealths in other more stabilized economies.

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  4. so precisely its the political instability which is hampering our economic growth.
    @excessive manance;i agree how the war on terror has adversly affected pakistan, but dont you think this war has brought about alot of funds with it too??shouldn't that have helped us in any way??or are their too many strings attached with that?

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  5. Well, I don't think we're supposed to consider the Aid given in terms of WoT a Good thing Mariam, for it has Not been spent on the people But to shut the mouths of those who were involved in initiating and supporting rather Promoting this sh*t in Pakistan.

    The only reason I can think of is the Corruption so Deeply tailored in our nation that it breeds every Other evil be it Politics, Business or Education. Even Medicine ain't free of it, I know many Bandits of medicine myself who prescribe just Anything for money.

    If we Only observe the Queue Culture, everything would be just fine! Give it a thought!

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  6. @obsessed:im with you on your point that aid isnt being used where its suppose to be, but have u also thought of the possibility that our own people may be misusing it too??
    we cant always put it on external factors...dont u think its time we start accepting some responsibity too??

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  7. By the way, the Mouths I talked about were our own Pakistani mouths, if you know what I mean ;o}

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  8. Well, to my surprise people here seem to be quite aware of the consequences of the foreign aid and investments, as they are only paid in to promote the imperialist agenda.
    However, speaking in terms of economics, these foreign aids and investments do bring short run equilibrium in the economy but leave us in a pretty worse position later on and it is mainly due to the prescription that comes along with this financial support. Such prescriptions restrict us from making the structural changes required to uplift our economy to its feet.
    Our economy today requires some real structural changes to be made starting with redistribution of land to improving our productive capacity in the industrial sector.
    By looking at the current scenario this does not seem to be an easy task. As someone mentioned above that no one cares for the people, so this certainly means that people will have think for themselves. The economic problems created politically will have to be resolved politically. The structural changes propounded here seem impossible otherwise.
    Our economy requires policies to be made independent of external influences and by this statement I mean that the burden of responsibility has been shifted onto us, "the People".

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  9. HELLO EVERY ONE...IAM AHMAD ...NEW IN THIS BLOG...nice disscusiion going on..let me contribute a bit

    if we have to see which is the root cause of all economic crisis
    for me that is TERRORISM N INSURGENCY in Pakistan
    may be iam wrong but i dont think political system is instable at the moment...govt is functioning well...n there is no uncertainity that govt wud collapse or army will take control.
    an un certain political envoirnment definitely can damage the economy

    for me the biggest reason of economic crises is TERRORISM..INSURGENCY OR MILITANCY....which litrally ruined our economy

    juss tell me
    who gona invest in that country
    where bomb blast can occur any time...any where
    s country where most of the areas r not even having writ of govt
    foreign investment has gone to the lowest level which was on its peak during musharaf govt...

    at least before doing anything
    first we have to provide a feasible n suitable atmosphere that could attract n encourage the investor...whether its local investor or foreign investor
    let me give u one example
    balochistan is our province which is full of mineral resources..oil gas etc
    but unfortunately
    there is miliancy in balochistan
    militant groups seeking independence n engaged in guriella warefare with security forces
    which oil n gas company wud dare to invest in balochistan in such circumstances??
    I rememba....an unfortunate company from polland last year entered..n 2 polish engineers abducted n later on beheaded by rebels...some other examples r killng of chiness engineers working on gwadar project n kidnaping of UNHCR members in balochistan ....*sigh*
    IS THAT A GOOD MESSAGE SEND BY THEM TO THE WORLD?...WUD ANY FOREIGN INVESTOR AGAIN DARE TO ENTER THERE ????

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  10. according to an estimate..in balochistan...there is tons of gold present worth more than 100 billion dollar(i can even provide u source n refrence if any one got any doubt)
    point to be noted our foreign debt is juss round about 50 billion dollar
    we got resources which worth hundreds of billions
    still we r unable to utilize them

    what is the root cause??
    isnt it the militancy n law n order situation that prevents any economic progress
    words like
    INDUSTRIES
    INFRASTRUCTURE
    STRUCTURAL CHANGES
    AFRICULTURAL SECTOR
    comes later....
    1st atleast make an atmosphere where all these things could be possible
    would u dare to start any project in country 5th largest city peshawar..where it will be blast forsure the very next day after its inaugration

    swat the beautiful valley
    can u promote TOURISM here without stoping militancy in swat???
    can u stop the BRIAN DRAIN of pakistan without establishing peace here??
    karachi the bigest city of pakistan..the revenue engine of pakistan ...produce almost 60 percent revenue of pakistan....
    but which investor will ever dare to enter.
    in the presence of pakhtun muhajir riots..gun fights..militancy...gangwars....shia suni riots...which unfortunately became an integral part
    of people life in karachi...the financial hub of pakistan have became hub of ethnical n secterian clashes


    so finally the conclusion is
    ELIMINATION OF MILITANCY.TERRORISM...INSURGENCY..inshort law n order situation are the "BASIC ROOT CAUSE"of all economic disasters
    first we have to emilinate these problems...only then we can think abt industrial growth..foreign investment....etc

    MILITANCY was almost ZERO..during musharaf reign
    thats y we vitness economic development

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  11. for that purpose we have to make various sacrifices
    flushing out militants...bringing back rebels into mainstream..establishing writ of govt n peace
    provideing a peacefull friendly envoirnment to all investors..to feel secure n invest their money safely.....
    though its a long term process but
    belev me...if we able to do so...then surely we have a great future..
    juss imagine...if we able to get back baloch rebels in mainstream n we utlize all the minerals of balochistan...the gifts
    of God given to this nation...like coal...gas..oil...platinium....its could make pakistan the richest country of southasia

    gwadar port wud became a financil hub...n can replace even dubai ...due to its great location...that provide china central asia n other land lock
    countries direct access to rest of world..through arabian sea...
    according to bussiness....if gwadar port could become effective..it can generate 1 million job opportunity every year in balochistan

    karachi can became once again hub of financial activities..where such activities has decreased to a great extent
    we got potential...we got resources...we got almost every thing to bring economis prosperity in our country...
    if we able to get rid of the problem...which no doubt have became "THE MOTHER OF ALL PROBLEMS"....then definitely..
    pakistan economy will rise...like it did...during musahaf era....

    so pray for the peace n stability of PAKISTAN

    I JUSS WANA KNW
    HOW MANY OF U AGREE WITH ME

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  12. @ahmed...that was quite an enriching comment ahmed,thankyou!!
    you are right uptill the point where it all stems from terrorism.Your even right of what a resource rich country we are and the latent potential all hidden in us.But why is that we have alwys been easy to be manipulated by others?i mean why havent we been able to make use of our own factor endowments efectively??
    Another point to be clarified is;during musharaf's reign, economy rose because we were getting alot of foreign aid!we were the American toddies so economic progress was likely but pfcourse not sustainable.Musharaff did us no good sadly!

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  13. /////////////////Another point to be clarified is;during musharaf's reign, economy rose because we were getting alot of foreign aid!we were the American toddies so economic progress was likely but pfcourse not sustainable.Musharaff did us no good sadly!/////////////////

    i dont agree with u marium..
    foreign aid did play a role
    but dont forget the economic achivements made during musharaf govt


    Economic Boom in Musharraf’s Era
    Basic comparison of 1999 and 2007

    Pak Economy in 1999 was: $ 75 billion
    Pak Economy in 2007 is: $ 160 billion

    GDP Purchasing Power Parity (PPP) in 1999: $ 270 billion
    GDP Purchasing Power Parity (PPP) in 2007: $ 475.5 billion

    GDP per Capita in 1999: $ 2,000
    GDP per Capita in 2007: $ 3,004

    Pak revenue collection 1999: Rs. 305 billion
    Pak revenue collection 2007: Rs. 708 billion

    Pak Foreign reserves in 1999: $ 700 million
    Pak Foreign reserves in 2007: $ 17 billion

    Pak Exports in 1999: $ 7.5 billion
    Pak Exports in 2007: $ 18.5 billion

    Textile Exports in 1999: $ 5.5 billion
    Textile Exports in 2007: $ 11.2 billion

    KHI stock exchange 1999: $ 5 billion at 700 points
    KHI stock exchange 2007: $ 70 billion at 14,000 points

    Foreign Direct Investment in 1999: $ 1 billion
    Foreign Direct Investment in 2007: $ 8 billion

    Debt servicing 1999: 65% of GDP
    Debt servicing 2007: 26% of GDP

    Poverty level in 1999: 34%
    Poverty level in 2007: 24%

    Literacy rate in 1999: 45%
    Literacy rate in 2007: 53%

    Pak Development programs 1999: Rs. 80 billion
    Pak Development programs 2007: Rs. 520 billion

    9 world class Engineering universities were developed and 18 Public universities already developed.
    · Public sector institutions increased from 110,267 (in 1999) to become
    · Private sector institutions increased from 36,096 (in 1999) to become 81,103 (in 2006).
    · PAK was 3rd best in world Banking profitability.
    · PAK IT industry now values around $2 billion, including $1 billion exports and employs around 90,000 professionals.
    · CNG sector attracted over $70 billion investment in last 5 years; and created 45,000 jobs.
    · Telecom sector attracted around $10 billion in investment and created above 1.3 million jobs.
    · Industrial Parks are being setup throughout the country for the first time! M3 estate, Sunder industrial estate, Chakri, etc.

    · PAK in 1999 was a $75 billion economy; and now 2006 it'was $160 billion economy!
    · PAK economy was the 3rd fastest growing economy after China & India .

    I DONT BELEV IT WAS JUSS DUE TO BLESSINGS OF AMERICANS...situation got worse after removal of musharaf...he was a man with a great vision...but the standard of present govt member is not to become a counciler of a MAHALA even....n unfortunately they r running the country matters like economy n security

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  14. Ahmad I am glad that you have a lot of information but you need to organize it a little. I see a lot of contradictions in your view point. Though all of the issues you have mentioned are genuine but the solutions you presented will further escalate this turmoil.
    In your first post, first paragraph, you wrote that there is no political instability but later on you wrote everything to prove this instability.
    However, it was a good attempt and I would love to discuss economic and political matters with you on this blog but please try to write precisely so I can keep track of what exactly you are saying.
    As far as your view point about Musharaf is concerned, I completely disagree with it. All the above problems you have identified started back in Musharaf's time, you just see them in their worst now. Also organize your information chronologically.
    I know my post might offend you but all I have written is just to correct you and this the main objective of this blog, to learn from each other.

    Regards
    Nazish

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  15. lolz..
    come on nazish..
    iam not offended...actually this is my first experience writing on any blog so therefore i wrote a huge post....
    iam sorry...next time...i wud try to write precisely
    sorry for the inconvinience

    newayz...the contradiction which u mentioned..
    let me explain....u didnt got my point...
    i said political system is going smooth n stable....its a good sign...there is no uncertainity that govt is going any time


    wat i mention is INSURGENCY n MILITANCY...which is causing instabiliy...but this instability is not known as POLITICAL INSTABILITY.....

    as we cud see...govt is determined to bring back writ of the govt...as there is consensus among opposition n govt on all security issues
    judiciary is working independently n so is media

    POLITICALY INSTABILITY is that instability that is cause by the political forces like for example...
    there was a Political instability when all political parties among with lawyers...launch a movement for restoration of judges n removal of musharaf....which worsen our economy
    at the moment there is no political crises as such

    so my point is....
    THERE IS A DIFFERENCE BETWEEN...INSURGENCY...N POLITICAL PARTIES....

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