thes ones in europe, especially uk are renamed or labels removed, therefore you wont see many made in pakistan here, but in usa there can be plently spoted

One of my friend was telling me that world bank has isssued a report. And according to this report Pakistan will be a developed country after 150 years:ohno: with its current speed and pace of progress which is 4.something.
India need 50 years more and
China will be after 23 years.




dont tell me its true. is it???????:bash:

thes ones in europe, especially uk are renamed or labels removed, therefore you wont see many made in pakistan here, but in usa there can be plently spoted

In UK i did see some made in Pakistan Jeans,shirts etc in H&M.

One of my friend was telling me that world bank has isssued a report. And according to this report Pakistan will be a developed country after 150 years:ohno: with its current speed and pace of progress which is 4.something.
India need 50 years more and
China will be after 23 years.




dont tell me its true. is it???????:bash:

Well this is what came in the news but I am sure they didnt provide enough detail.

It said over a certain period of time our growth averaged 4 percent and continuing at this pace we would catch up with the developed world in 150 years but if our growth rate averages 7 or 8% we can catch up with the developed world in 50 years, something along those lines.

^^ What is this trappy...your flippin life story between the ages of 13-16?? There's a get to to know you thread for that :lol:

No, just when I was 16 actually! :tongue3:

One of my friend was telling me that world bank has isssued a report. And according to this report Pakistan will be a developed country after 150 years:ohno: with its current speed and pace of progress which is 4.something.
India need 50 years more and
China will be after 23 years.




dont tell me its true. is it???????:bash:

No, its not true. I have an article, which says that it will take India a 100 years too. They also underestimated our current GDP Per Capita and exaggerated India's. They also said that our avearge growth rate over the last 60 year has been 1.8%, which is a load of bull!

like i said, the media just presents everything in simplified incorrectly summarized 2 line headlines. its pathetic to be honest.

PESHAWAR, May 28: The NWFP government plans to establish five more industrial estates to woo investors for boosting up its fragile economy.

“Five more industrial estates, one each at Rashakai in Nowshera, Bannu, Hattar, Hangu and Kohat-Rawalpindi Road, will be established to lure foreign and local investors to the province,”said Karam Khan, director of the Sarhad Development Authority.

The plan, he said, had been approved and would be unveiled during the coming budget session by the provincial government.

For this purpose, he said, 1,000 acres of land each had been acquired for the industrial estates at Rashakai and Bannu and efforts were on to obtain land for the three other estates.

“For each industrial estate, we will purchase 1,000 acres of land. The government will also provide the required infrastructure, besides other facilities, to investors,” he said.

About the estimated cost of establishment of one industrial estate, he said the government had decided to spend between Rs700 million to Rs1 billion on an estate.

One of the estates would be set up on the pattern of the Sundar Industrial Estate, Punjab, where incentives would be offered to investors, he said.

To improve trade ties with China, the provincial government with the assistance of the federal government was establishing the China-Pak Economic Zone in the Hazara region, he said. This had been decided at a high-level meeting of the provincial government a few weeks ago, he added.

Mr Karam the government had also decided to grant tax holiday to investors in the China-Pak Economic Zone for five years to boost up local economy and provide job opportunities to people. Investors, he said, would also be allowed to import machinery without paying excise duties for five years on the pattern of the Sundar Industrial Estate.

This would also benefit China because it would get access to more markets. Chinese investors, he added, would be able to transports their goods to India, Afghanistan and other neighbouring countries easily.

According to him, labour cost was relatively low in Pakistan and, therefore, Chinese investors preferred investing in Pakistan. He said Chinese investors had installed two units in the China-Pak Economic Zone and work on more industrial units was in progress.

“We have also acquired land for establishing the US-sponsored Reconstruction Opportunity Zones in Bannu and the Shahkas area of the Khyber Agency,” he added. He said the government was focusing on industrial development in the province.

Of the five existing industrial estates in the province, he said, only one was fully operational and the others faced problems. Efforts to make operational all units in the industrial estates were also being made, he added.

Karachi: Sindh Minister for Industries & Commerce Rauf Siddiqui has said that foreign investors are being contacted to invest in agro-based industries in interior Sindh, saying many of them want to invest in livestock and corporate farming sector.
This he said while talking to newsmen after meeting with Arab Consul General to Karachi at Sindh Secretariat on Wednesday. He said that Sindh government was contacting local and foreign investors to invest in agro-based industries in rural areas. He said that Sindh Ministry of Industry & Commerce would provide all-out facilities in this regard.
The minister said that only promoting agro-based industries could strengthen our falling economy. He said that Sindh government was focusing on agro-based industries in cities, particularly in Larkana, Sukkur, Nawabshah, Hyderabad and Mirpurkhas. He said that land had been allocated for agro-based industries by the government. He said in this regatd 300 acres of land each have been earmarked in Larkana, Khairpur and Hyderabad, while 5,000 acres of land on Superhighway near Dhabeji.
He said that recently he had visited Saudi Arabia and met Pakistani and Saudi investors, who assured him of investing in Pakistan, particularly in Sindh. He said that many of Arab investors expressed their desire to invest in agro-based industries in interior Sindh, for which they were demanding land.
He said that a UAE-based group was keen to invest in storing dates at Sukkur and Khairpur as per scientific methods. He said that this UAE group is expected to visit Pakistan in this regard soon. He said that such investment would save our dates of worth of millions of rupees, which are being wasted due to non-availability of storage facility. Rauf Siddiqui said that two major groups of Saudi investors, Ibn-e-Daud and Ibn-e-Mahfooz, were also keen to invest in Pakistan and they had been assured by the Sindh government of provision of all-out facilities to invest in agro-based industries in interior Sindh. He said that an office of all concerned ministries is being set up at SITE, to facilitate investors.

thes ones in europe, especially uk are renamed or labels removed, therefore you wont see many made in pakistan here, but in usa there can be plently spoted

Apparently this is true. I was shocked/disappointed to learn that this was the practice in the UK!! :ohno:

No, its not true. I have an article, which says that it will take India a 100 years too. They also underestimated our current GDP Per Capita and exaggerated India's. They also said that our avearge growth rate over the last 60 year has been 1.8%, which is a load of bull!

You can never trust long term projections. Keep in mind, this isn't the first time that India's economy has boomed. Try to find an travel guide to India from the late 70's... they talk about how India is a booming nation that will become an economic giant soon - sounds like today's rhetoric huh? economic booms come and go, and its silly to assume that our neighbors boom will continue for 50 years.


And on another note, I'm so tired of hearing of these investors "keen on doing business" in Pakistan. Invest already!!!

External debt at peak level of $44.59 billion

RIZWAN BHATTI

KARACHI (May 30 2008): The country's external debt witnessed a rise of over 5.5 billion dollars to hit a new peak of some 44.59 billion dollars during the current fiscal year mainly due to rising current account deficit. As per Fiscal Responsibility and Debt Limitation Act, 2005, the government has to reduce its foreign debt by 2.5 percent every year and current year it should be 24.5 percent of GDP from 27 percent.

However, during the current fiscal year it is difficult for the government to meet this target due to rising current account deficit and it is expected that by the end of June it would remain at 27 percent of GDP. Economists said that the government has borrowed some 5.58 billion dollars foreign debts during the first three quarters of the current fiscal year to meet its over 10 billion dollars current account deficit.

They said slow foreign inflows coupled with declining foreign investment and sluggish privatisation process compelled the government to use the tool of borrowing to fulfil its foreign payment requirements. The central bank statistics revealed on Thursday that the country's foreign debt has witnessed an upsurge of 14.32 percent or 5.58 billion dollars during the first nine months of current fiscal year.

After the current upsurge, first time in the history of the country, overall foreign debt that earlier stood at 39.008 billion dollars on June 30, 2007, rose to historic level of 44.596 billion dollars by the end of March 2008. The rise during July-March 2008 is much higher than the overall foreign borrowing of FY07, as during the last fiscal year foreign debt increased by 8.43 percent or 3.034 billion dollars to 39.008 billion dollars from 35.97 billion dollars.

The statistics show that major surge has been witnessed during the third quarter (January-March) of FY08, in which foreign debt rose by 7.35 percent or 3.056 billion dollars from 41.54 billion dollars to 44.59 billion dollars. Meanwhile, the overall external debt and liabilities mounted to new peak level of 46 billion dollars during FY08.

External debt and liabilities showed an increase of 13.45 percent to 45.926 billion dollars till March 2008. It previously stood at 40.481 billion dollars on June 30, 2007.

Economist said that during the first three quarters of FY08, the country faced 9.85 billion dollars current account deficit because of high goods and services trade deficit as compared to some 6.16 billion dollars deficit during the same period of last fiscal year, which forced the government to use foreign exchange reserves and borrow from international financial institutions.

During the current fiscal year, the government utilised some 3 billion dollars from foreign exchange reserves and some 3 billion dollars of foreign investment to meet current account deficit, while remaining gap was bridged through new foreign loans.


brecorder.com (http://www.brecorder.com/index.php?id=748458&currPageNo=1&query=&search=&term=&supDate=)

Government likely to implement minimum wage in budget

ABDUL QADOOS

PESHAWAR (May 30 2008): The federal government is likely to implement the increase in the minimum wage of the workers, as announced by Prime Minister Yousuf Raza Gilani in his maiden address to National Assembly after his election, in the federal budget for next financial year of 2008-09. However, the industrialists are seemed to contend the government move.

The announcement sparked a short-lived joy among the workers, as none of the private sector institution has implemented the increase so far. "The announcement o the Prime Minister regarding increase in the minimum wage is interference in the provincial affairs as the matter is the subject of the province," Nauman Wazir, president, Industrialists Association Peshawar (IAP) told Business Recorder when contacted. He called for constitution of a wage board at provincial level to decide such matters in future.

The stand of the president of National Labour Federation Gul Rehman is totally different, who says the matter is very much federal and demanded of the provincial government to implement the decision forthwith. He says the concerned authorities make no time in the implementation of anti-labourers decisions, but resort to delaying tactics when it comes in the four of poor working class.

He said that the provincial government has linked the implementation of the increase in minimum wage with the issuance of the proper notification. He said that the matter has no link with the budget as it was announced by the prime minister in his inaugural speech.

The labour leader did not agreed with the contentions of the industrialists that the announcement was interference in the provincial affairs, saying that prime minister is elected for the whole country. He said that federal government gave policy and provincial governments have to implement them.

He said that the sky rocketing price hike had made the lives of the labourers and low paid employees miserable. He called for implementation of the increase to save labourers from hardships in the current wave of the price hike. "The government is sincere in implementation of the announcement of prime minister regarding increase in the minimum wage of the labourers," reaffirmed Rahimdad Khan, senior minister in NWFP cabinet.

Khan, who is also president of the PPP NWFP chapter, said that both federal and provincial government are committed to implement the pledges of the Prime Minister with the labourers. However, he said that the decision would be made part of the national budget for next financial year.


brecorder.com (http://www.brecorder.com/index.php?id=748546&currPageNo=1&query=&search=&term=&supDate=)

Defending the tightening of monetary policy

EDITORIAL (May 30 2008): The tightening of monetary policy by the State Bank on 22nd May has, by and large, been criticised by the business community. This was expected because, whatever the arguments, borrowers don't want to pay a higher price for the use of funds obtained from the banks.

In an interview with a TV channel, the State Bank Governor, Shamshad Akhtar again defended her decision to resort to strict monetary measures, by saying that government borrowings and inflation had reached a point where a sharp increase in interest rates was inevitable.

"If we would not have done so (raising the rates on 22nd May, 2008), we might have been raising the interest rate by 300 basis points in future", the Governor added. The SBP was fighting a tough battle to stem overall inflation caused by soaring international oil prices amid domestic and worldwide food shortages.

The annual inflation has already doubled from 12.5 percent to 25.5 percent while the core inflation is also touching double digits. Food inflation will touch 26 percent and may be more in the coming days.

Shamshad once again appealed to the government to retire its debt to the central bank by crediting its foreign inflows in the rupee account held with the State Bank. The State Bank measures had eased pressure on the Pak rupee which had gained by about three percent against US dollar since last Friday.

There is no denying the fact that the State Bank's decision to implement highly restrictive monetary measures was largely justified in view of the rapid acceleration in inflation rate during the last few months.

Particularly disturbing was the jump in food prices which had rendered the lives of ordinary people more miserable and the poor were almost on the verge of starvation. All of this was caused by a combination of adverse developments originating from both foreign and domestic sources.

It is true that while developments in the international market like abnormal increase in international oil prices would continue to exert an adverse impact on prices and other areas of domestic economy, the fresh measures announced by the State Bank would certainly help contain demand pressures in the economy and tame inflationary expectations.

We had commented on these measures in great detail in our editorial published on 24th May, 2008 and defended the State Bank's new strategy and it is no use repeating the same points.

It seems that the extensive debate on these measures, particularly their usefulness and inevitability, has not gone in vain because the government as well as the public at large are now more aware of the need to adopt an appropriate fiscal stance to complement the monetary policy tightening in order to restore price stability in the country.

According to credible sources, the main thrust of the budget for 2008-09 likely to be announced in a few days would now be on reducing fiscal deficit to a sustainable limit by cutting expenditures and introducing further reforms in the tax system in order to broaden the tax base, improve tax compliance and minimise tax evasion.

Pakistan's newly elected government has already told the World Bank that it plans to eliminate subsidies on imported oil in the new financial year. The return to the previous regime of passing oil prices to domestic consumers will of course be a landmark but politically challenging step. Inflation rate is also likely to be targeted at a lower level of eight percent for the forthcoming year.

While all of this generally indicates a healthy development and augurs reasonably well for the future, we would advise the State Bank authorities not to be oversensitive to the divergent views and refrain from indulging in avoidable controversies.

After all, certain groups of people suffer and are angry when major policies of the country are reviewed and revised. For instance, the stock exchange has taken a hit as a result of State Bank's decisions and thousands of investors must have lost a good percentage of their invested funds.

Also, we don't see the rationale of the State Bank for so much emphasis on core inflation to make a point. In Pakistan, food inflation is really the core inflation for majority of the people and this inflation is also amenable, though to a lesser degree, to monetary measures.

In our view, people are generally more familiar with the concept of overall trend in CPI which is also probably more relevant to their lives and, therefore, should be the focus of policy in Pakistan. The State Bank of Pakistan has done its bit. Now it is the turn of fiscal authorities to do the necessary adjustments.

The fiscal deficit at 9.5 percent (on accrual basis) has to be reduced to 6.5 percent this year and to 4.9 percent next year. The budget cannot fully subsidise the oil bill. We have to increase the Gas Development surcharge by Rs 15 per cubic feet. It would fetch around Rs 15 billion.

This increase in the surcharge would provide room to partially subsidise the price of diesel. Of course, subsidies create distortions and cross-subsidies confound them further, but in the immediate term we have very few choices. Further, we must work out calorific equivalent of furnace oil, CNG and LPG and equate the prices over time to end the distortion.

And, lastly we have to collect taxes from sectors that are under-taxed or not paying at all and are in apposition to share the tax burden such as real estate. Let us not be blackmailed by the fall in the stock exchange index. It will bounce back once the budget clears the air.


brecorder.com (http://www.brecorder.com/index.php?id=748562&currPageNo=1&query=&search=&term=&supDate=)

Government likely to implement minimum wage in budget

ABDUL QADOOS

PESHAWAR (May 30 2008): The federal government is likely to implement the increase in the minimum wage of the workers, as announced by Prime Minister Yousuf Raza Gilani in his maiden address to National Assembly after his election, in the federal budget for next financial year of 2008-09. However, the industrialists are seemed to contend the government move.

The announcement sparked a short-lived joy among the workers, as none of the private sector institution has implemented the increase so far. "The announcement o the Prime Minister regarding increase in the minimum wage is interference in the provincial affairs as the matter is the subject of the province," Nauman Wazir, president, Industrialists Association Peshawar (IAP) told Business Recorder when contacted. He called for constitution of a wage board at provincial level to decide such matters in future.

The stand of the president of National Labour Federation Gul Rehman is totally different, who says the matter is very much federal and demanded of the provincial government to implement the decision forthwith. He says the concerned authorities make no time in the implementation of anti-labourers decisions, but resort to delaying tactics when it comes in the four of poor working class.

He said that the provincial government has linked the implementation of the increase in minimum wage with the issuance of the proper notification. He said that the matter has no link with the budget as it was announced by the prime minister in his inaugural speech.

The labour leader did not agreed with the contentions of the industrialists that the announcement was interference in the provincial affairs, saying that prime minister is elected for the whole country. He said that federal government gave policy and provincial governments have to implement them.

He said that the sky rocketing price hike had made the lives of the labourers and low paid employees miserable. He called for implementation of the increase to save labourers from hardships in the current wave of the price hike. "The government is sincere in implementation of the announcement of prime minister regarding increase in the minimum wage of the labourers," reaffirmed Rahimdad Khan, senior minister in NWFP cabinet.

Khan, who is also president of the PPP NWFP chapter, said that both federal and provincial government are committed to implement the pledges of the Prime Minister with the labourers. However, he said that the decision would be made part of the national budget for next financial year.

brecorder.com (http://www.brecorder.com/index.php?id=748546&currPageNo=1&query=&search=&term=&supDate=)

First and foremost, minimum wage will increase unemployment.

Its a trade-off. Depends what your priority is. Do you want high employment and low unemployment but the lower labor class working at shitty wages. Or if you want higher unemployment but also a higher wage for those who are actually employed.

Secondly, I wonder how such a law will be implemented in the lowest sector of the labor class which usually works without legal employment contracts.

BEIJING: Pakistani manufacturers of shoes and leather products are taking part in the annual exhibition started in Guangzhou from Wednesday (today).
As many as 17 prominent entrepreneurs from Karachi and Lahore are taking part at the 18th International Exhibition on recommendation of Pakistan Tanners Association with the collaboration of Trade Development Authority of Pakistan (TADP).
According to the organizer, the fair is unique in terms of specifically catering to the needs of shoe manufacturers. The exhibition has become an important event for the leather industry for the consumption of finished leather for shoes in Guangzhou city as it is also considered one of the industrial hubs of China.

First and foremost, minimum wage will increase unemployment.

Its a trade-off. Depends what your priority is. Do you want high employment and low unemployment but the lower labor class working at shitty wages. Or if you want higher unemployment but also a higher wage for those who are actually employed.

Secondly, I wonder how such a law will be implemented in the lowest sector of the labor class which usually works without legal employment contracts.

If the government does it right, there doesn't have to be a major lay off for workers. I read that there is actually a shortage of labor in Pakistan (dunno how that is possible, but I know what I read), so it's not like employers have a choice to fire their workers.

They'll just have to pay a higher minimum wage at the expense of their profits.

No, its not true. I have an article, which says that it will take India a 100 years too. They also underestimated our current GDP Per Capita and exaggerated India's. They also said that our avearge growth rate over the last 60 year has been 1.8%, which is a load of bull!

I think I read somewhere that Pakistan's average growth rate over the last 60 years has been about 4%. Does anyone know if it's true?

You can never trust long term projections. Keep in mind, this isn't the first time that India's economy has boomed. Try to find an travel guide to India from the late 70's... they talk about how India is a booming nation that will become an economic giant soon - sounds like today's rhetoric huh? economic booms come and go, and its silly to assume that our neighbors boom will continue for 50 years.


And on another note, I'm so tired of hearing of these investors "keen on doing business" in Pakistan. Invest already!!!

Thanks for telling me that. I never knew that India boomed in the 70s too!

If the government does it right, there doesn't have to be a major lay off for workers. I read that there is actually a shortage of labor in Pakistan (dunno how that is possible, but I know what I read), so it's not like employers have a choice to fire their workers.

They'll just have to pay a higher minimum wage at the expense of their profits.

Bangladesh has a smaller population than ours, but their workforce is larger by quite a margin! :ohno: I guess its got to do with the fact that our population is younger than their's, owning to our higher fertility rate.

Workforce:

Pakistan: 49.18 million (2007)
https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html#People

Bangaldesh: 69.4 million (2007)
https://www.cia.gov/library/publications/the-world-factbook/geos/bg.html#Econ

I think I read somewhere that Pakistan's average growth rate over the last 60 years has been about 4%. Does anyone know if it's true?

Yes its somewhere around the 4%+ figure. Thats why the 1.8% figure got on my nerves!

Following are Two charts that I've posted before. By looking at the second chart you'll see that we've had an average growth rate of 4.95%. So we've grown on an average rate of almost 5% during the last 60 years. That's how I was able to tell that the article was nothing but a load of bull!

http://i262.photobucket.com/albums/ii109/traPPed_2008/EconomicPerformance.jpg?t=1206605834



http://i262.photobucket.com/albums/ii109/traPPed_2008/PAKPoliticsEconomy.jpg?t=1207876852

First and foremost, minimum wage will increase unemployment.

Its a trade-off. Depends what your priority is. Do you want high employment and low unemployment but the lower labor class working at shitty wages. Or if you want higher unemployment but also a higher wage for those who are actually employed.



As we all know by now, economics is never so straightforward. Despite such concerns being expressed as an argument against the introduction of a minimum wage in the UK, its introduction nevertheless in the mid-90s had a negligible impact on the unemployment rate. Coversely, it had a positive impact on attracting would-be-employees to those sectors which had previously underpayed their labor.

Lesson? I guess it just depends upon the individual economic factors of any given country.

nvm

Lol....good spot young man. However, its deliberate on my part but admonishment nevertheless noted :lol:

For a British guy, you do spell labour in the wrong way! It's "labour" man! There's so much American influence around the world nowadays! :ohno: I've increasingly seen people here using words such as "dude" & "hola". Though stuff like "Yo! Wassup?" was already in use! Just because Americans/North Americans can't spell, doesn't mean that we have to ruin our spellings aswell.
"hola" is spanish...means "hello"

nvm

I know that!! But its mosty used as a slang word in America! No need for it to cross the pond!
You're so obsesssed with Britain. You can't go for 3 posts without mentioning London or Britain. It's OK. We know you live there, get over it.

nvm

I didn't say or mean that dickhead! Just was shocked at PakFan's post thats all!

If there's one thing that I'm obsessed with, thats Pakistan. Otherwise I wouldn't even be on this darn site! Had I been in Pakistan, I wouldn't even feel the need to join such a site!

Kindly stop with your assumptions about people!

Look who's talking.

You are assuming that Canadians are just like Americans. However we spell it coloUr and laboUr, not the American way. So stop with you assumptions about people before you tell others to stop it.

^^ Fine. Chill!

:laugh:

thats it? no dishum dishum?

thats it? no dishum dishum?

We are not French! :tongue3:

Carry on yaar.:lol: maza aa raha tha

Thanks for telling me that. I never knew that India boomed in the 70s too!

Woops I meant 80's.


Here's one of the few Indian economist groups that questions the growth stats published by their government, and believe that the published stats are actually largely the result of statistical manipulation. (I suspect the same has happened in Pakistan). Granted, the economists seem to have a Leftist streak in their criticisms, but they raise some very interesting points that people tend to ignore when talking about India.: http://www.rupe-india.org/36/contents.html

^^ Thanks for the link! :)

thats it? no dishum dishum?

Yeah, i was expecting more from him.

Looks like he has taken an anger management class.

Who deleted this post of Wally??? :? I wanted it to stay here as evidence!!

if its already deleted, then how did you quote it?

nvm

:crazy:

Fiscal deficit at 7pc to further fuel inflation if govt does not stop borrowing from central bank; high oil import bill nullified export growth; targeted subsidy through ration cards suggested

Sunday, June 01, 2008
By Saad Hasan

KARACHI: Pakistan’s economic growth will slow down to a five-year low in the outgoing fiscal year, dragged down by a poor wheat harvest and slump in manufacturing output, the State Bank of Pakistan (SBP) has forecast.

Real GDP growth in fiscal 2007-08 has been estimated lower between 5.5 and 6 per cent against the budgeted target of 7.2 per cent while an all-time high current account deficit of 7.3-7.8 per cent is projected in the quarterly report for January-March period released on Saturday.

Food inflation, which leaves a disproportionately high impact on poor, has remained in double digits during the third quarter and future outlook is dismal in view of the increase in food transportation cost after upward revision in fuel prices.

“There is a need to take necessary administrative measures to protect low-income households by providing targeted subsidy to them through ration cards, utility stores or through students of public schools,” the central bank said.

Full year fiscal deficit at a high of 6.5 - 7 percent threatens to further fuel inflation if government did not divert its borrowing sources away from central bank, SBP has again cautioned.

Though exports grew by 10.2 percent during July-April 2007-08, country’s trade deficit has swelled to record $16.8 billion due to huge import bill.

Most of the export growth came during the third quarter on back of non-textile products as Pakistani rice and sugar fetched higher values from international markets.

Massive imports led by high petroleum product cost nullified export growth and further strained the current account. The financial and current account surplus also declined during nine months as foreign portfolio investment plunged to $118 million from $1.76 billion in corresponding period of previous year.

Unlike slow performing agriculture and large scale manufacturing sectors, services sector is poised to achieve the annual targeted growth, SBP says. “The main contributors to this performance are wholesale and retail trade, transport and storage and communication as well as public administration and defence sub-sectors.”

About improvement in agricultural output, the bank has proposed that government ensures a farmer get benefits of increase in food prices. Moreover, there is need for enhancing investment in agriculture-sector infrastructure like farm-to-market roads, it added.

The manufacturing sector suffered at hands of a severe energy crises and political unrest, which gripped the country after assassination of former Prime Minister Benazir Bhutto.

SBP says that conduct of monetary policy has become challenging as inflationary pressures fed by unprecedented hike in global food and energy prices persist and government continues to rely on it for meeting the budgetary deficit.

Maintaining a tight monetary policy is imperative to control the expected continuation of high inflation, it suggested and called for government’s support in shape of fiscal prudence.

Nevertheless, credit demand is strong despite a slowdown in growth to consumers mainly because of rise in working capital requirements due to higher input costs and payments to oil companies and IPPs under the head of price differential claims.

:(

Jamhooriyat :rock:

^^ Sorry can't see your post, you're on ignore.

:rofl: That just cracked me up! :rolf:

nvm

Jamhooriyat :rock:
sorry bro if im speaking in ur internal matters..
my 2 cents::2cents:
wait 4 some time n it will be all well.....:okay:
we have grown @ 9% 4 d succesive 3rd year.. despite a messy coalition government.. n dat too d left party(communists) as partners..:sly:

****
but u guys know better coz u have live there.. n know how it works there..
all the best for future..
:okay:

Woops I meant 80's.


Here's one of the few Indian economist groups that questions the growth stats published by their government, and believe that the published stats are actually largely the result of statistical manipulation. (I suspect the same has happened in Pakistan). Granted, the economists seem to have a Leftist streak in their criticisms, but they raise some very interesting points that people tend to ignore when talking about India.: http://www.rupe-india.org/36/contents.html

dont know about d 80's part.. but 70's wala part got me cracked up too.. :lol:forget boom.. dat was d time when george fernandes forced COCA-COLA n IBM to move out of d country(1977) to be precise..
communism @ peak..:nuts:
hate those B*STRDS
its good that communism hasent found its way in pakistan..:cheers:

http://i262.photobucket.com/albums/ii109/traPPed_2008/PovertyTable01-05.jpg?t=1212330081

^^ The Table values in Chart form:

http://i262.photobucket.com/albums/ii109/traPPed_2008/PovertyChart01-05.jpg?t=1212330378

http://i262.photobucket.com/albums/ii109/traPPed_2008/PAKUrban-RuralPoverty.jpg?t=1212330831

AWESOME!!! Shows everything in detail! :cheers: :banana: :happy:

http://i262.photobucket.com/albums/ii109/traPPed_2008/PovertyBands01-05.jpg?t=1212331063

As usual, the Rich always benefit the most from economics growth. Just as in any other capitalist society.

NOTE: Quintile 5 = Top 20% & Quintile 1 = Bottom 20%

http://i262.photobucket.com/albums/ii109/traPPed_2008/WealthIncreasebyQuintile.jpg?t=1212331451

A slight increase in inequality, due to economic growth. But hey, it happens everywhere!

http://i262.photobucket.com/albums/ii109/traPPed_2008/GiniCoefficient01-05.jpg?t=1212332020

Growth Rate of Employed Labour:

Lowest Growth in Agriculture at less than half a percent. And highest growth in Finance with more than 10%. :cheers:

http://i262.photobucket.com/albums/ii109/traPPed_2008/LabourGrowthRatesPAK.jpg?t=1212332377

http://i262.photobucket.com/albums/ii109/traPPed_2008/ProductivityEarningsGrowth.jpg?t=1212332842

My tirade is now over! :cheers: Here's the link to all of it. Its a good read and it isn't too long either! :)

http://www.pakistan.gov.pk/ministries/planninganddevelopment-ministry/annual%20plans/2006-07/Poverty/AnnualPlan0607Poverty.pdf

Sindh & Punjab Dominate Pakistan! Woohoo! :banana: :banana: :cheers:

Sindh’s GDP estimated at Rs240 billion


By Sabihuddin Ghausi

KARACHI, June 15: The Sindh’s GDP has been estimated at $40 billion by the Sindh Senior Minister, Syed Sardar Ahmad, in his budget speech who called it the second largest economy of Pakistan.

At this estimate of $40 billion (Rs240 billion), Sindh’s economy is roughly a little more than 27 per cent of the national economy and has apparently slipped down from 33 to 34 per cent of the national economy during the decades of the 60s, 70s and even during a part of the 80s. The federal ministers put national economy at $146 billion (Rs8,760 billion) in 2007 and hope to push it up further by seven per cent plus during 2007-08.

But the senior minister in his speech did not elaborate further on Sindh’s regional domestic production to inform public of the contribution of various components of the economy indicating that the $40 billion estimate was a mere guesstimate rather than the result of a serious exercise. There is not a word on industrial growth, agricultural production, services sector, mining, fisheries, livestock, schools, hospitals, enrollment of children, particularly of girls in schools.

A day earlier, the Punjab chief minister had informed public that Punjab’s GDP was 53 per cent of Pakistan’s economy and that it showed a growth of eight per cent plus during 2006-07.

By implication, the Punjab chief minister made it known to all that economic growth of his province was well above the national average growth of seven per cent. It means that the three other provinces are far behind in development and Punjab is the growth engine of Pakistan’s economy.

By this estimation, (Punjab’s share of 53 per cent and Sindh’s 27 per cent), the share of the other two provinces, Balochistan and NWFP, comes to a mere 20 per cent. There is no study to show how much is the share of each of the two provinces — Balochistan and NWFP — in 20 per cent.

Punjab has developed a mechanism of monitoring GDP indicators with the assistance of World Bank and has found that quite a good size of Sindh’s services sector shifted to Lahore. Services sector in Punjab was estimated at 53 per cent of its total economy in 2005. Investment and industrial growth in Punjab has been crawling up in Punjab since the 1977 takeover by General Ziaul Haq. Agricultural growth in Punjab has been steady than in Sindh because of better availability of water.

The World Bank too carried out a study on Sindh’s economy after the 2002 elections and formation of a coalition government in Karachi.

The findings of the World Bank team in more than two years’ exercise was not well taken by the political leadership and bureaucrats of Sindh.

Well-placed sources in Sindh explained that the World Bank and other international donors wanted to offer loans and credits, and the Sindh government showed some reluctance to accept this offer, and in the bargain earned ire of World Bank and international donors.

Way back in the decade of 80s, efforts were made in Sindh to set up a Sindh Regional Plan Organisation. It carried out many studies on districts that found economic disparities increasing between the rural areas and the urban areas of the province. The then President, General Ziaul Haq, did not conceal his anger on all such studies which project the deprivations and sufferings of rural people of Sindh.

A leading economist who taught at Karachi University, served a caretaker government as a minister and now is working with a UN agency told a group of newsmen in Karachi that Ziaul Haq’s government officially forbid him to work on monitoring Sindh GDP indicators.

But recent reports suggest that the Sindh government is developing a system to monitor regional GDP of the province with the help of independent economists. Dr Kaiser Bengali’s doctorate detestation is on estimation of Sindh’s economy. He is said to be giving some help to the Sindh government.

Sources in the Sindh government say that the government may consider issuing a provincial Economic Survey every year with budget documents in the future.

http://www.dawn.com/2007/06/16/ebr3.htm

Admittedly the article is a year old!

Can we please stop all of this political mumbo jumbo and get back to focussing solely on the economy?

Back to topic..reply each other via PM.

No, its not true. I have an article, which says that it will take India a 100 years too. They also underestimated our current GDP Per Capita and exaggerated India's. They also said that our avearge growth rate over the last 60 year has been 1.8%, which is a load of bull!



Hey,
It seems correct that Pakistan's economy has grown at a 5% average annual rate since 1950, however, growth is probably around 2% per annum (like it said in the report) in PER CAPITA terms, as Pakistan's population has grown on average by 3% per annum in this time period (although recently it has been around 2% per annum)

I think I read somewhere that Pakistan's average growth rate over the last 60 years has been about 4%. Does anyone know if it's true?


Hi,

I believe the average economic growth rate of the economy for the last 60 years is 5% (overall) and closer to 2% in per capita terms (as population has grown around 3% per annum, though it has been lower in the last few years)

Back to topic..reply each other via PM.

Move it to the bullshit thread please.

:colgate:




see i asked nicely, no derogatory remarks about france! :tongue3:

Out of sindh's 27 per cent share Karachi' share would be 70 percent. is it?

Hey,
It seems correct that Pakistan's economy has grown at a 5% average annual rate since 1950, however, growth is probably around 2% per annum (like it said in the report) in PER CAPITA terms, as Pakistan's population has grown on average by 3% per annum in this time period (although recently it has been around 2% per annum)

Hi,

I believe the average economic growth rate of the economy for the last 60 years is 5% (overall) and closer to 2% in per capita terms (as population has grown around 3% per annum, though it has been lower in the last few years)

NO! The article said that in the last 10 years, Pakistan has grown at an average rate of 1.8% Which is complete bollocks! Just look at the charts posted by me! Our growth rate has averaged 7.7% during the last 10 years. NOT 1.8% like mentioned in that article. Even Per Capita wise, our growth rate has been way higher than just 1.8% during the last 10 years. Subtract 7.7% from 1.8-2.0% and you're left with 5.7%-5.9% Per Capita growth during the past 10 years. Not 1.8% like mentioned in that article. Anyways Pakistan won't take a 160 years like it said in that article and neither will Pakistan take 20, 30 or 50 years. We have grown 5% on avearge since our independence and if we grow at this same pace, which is mostly likely of all, we will be developed by 2100. Just like the time frame said for India, by an article in Rediff. These nations can't expect to be developed before 2100. You should check out their abysmal social indicators! Economic booms come and go, people shouldn't get carried away with them.

http://i262.photobucket.com/albums/ii109/traPPed_2008/EconomicPerformance.jpg?t=1206605834

Out of sindh's 27 per cent share Karachi' share would be 70 percent. is it?

80% of Sindh's GDP and probably in excess of 95% of Sindh's Revenue Generation.

ISLAMABAD (June 04 2008): The federal cabinet is being presented Rs 2.25 trillion federal budget 2008-09, for overview in its meeting scheduled for Wednesday, June 4. Prime Minister Syed Yusuf Raza Gilani will chair the meeting. Sources said the cabinet will be given a detailed presentation on upcoming budget, being unveiled on June 10.

The budget makers will brief the cabinet on economic growth in the current fiscal year and projections and expectations for 2008-09. They will brief the cabinet about performance of key sectors of the economy in 2007-08. It would include results of trade with global partners, remittances, revenue collection, GDP growth, individual outcome of agriculture, manufacturing and other key sectors of the economy. The budget makers will also inform the cabinet about the challenges the economy was facing due to high oil prices and the ongoing global food crisis.

The cabinet will also be informed about the strategy to be followed for quick adjustments in different sectors of the economy for better performance in 2008-09.

The budget makers have already set a Public Sector Development Programme (PSDP) at Rs 541 billion for the next fiscal year, besides fixing an ambitious revenue target of Rs 1.25 trillion for the Federal Board of Revenue (FBR).

The cabinet will also be briefed on Pakistan's exports in the last fiscal year. The government is facing huge trade deficit due to poor performance on export front and its one of the factors posing serious threat to Pakistan's economy. FBR chairman Abdullah Yusuf will brief the cabinet on revenue collection figures. FBR is on target to meet downward revised target of Rs 990 billion but the government would like better performance to achieve comparatively tough target of Rs 1.25 trillion in 2008-09.

The meeting will also be informed of the decisions taken to protect the poor from unprecedented price hike. It will be briefed on the possible increase in the government employees' salaries and pensions as a part of the relief package. The government is likely to raise the government employees' salaries by 20 percent in the budget.

LARKANA, May 30: Construction of a dual carriageway between Ratodero, Larkana and Dadu, establishment of a cement factory in Qubo Saeed Khan and a power generation plant at Mazarani Gas Field near Ghabidero are salient features of the prime minister’s Larkana development package, said MNA-elect Faryal Talpur at a reception at Naudero House on Thursday.

She said keeping in view the growing demand of irrigation water, extension of Saifullah Magsi Canal would be undertaken and in view of the Ratodero Taluka Council’s recommendation property tax would be waived off for Naudero people.

She said the government was ready to go for new delimitations of union councils and Dehs in Larkana and Qambar-Shahdadkot districts. In this context a committee comprising Larkana and Qambar-Shahdadkot district presidents of PPP, elected representatives and officers concerned should prepare proposals for early implementation, she added.

She said a number of development schemes pertaining to road network, health, education that had been approved and almost all roads of Larkana would be rehabilitated. She said to surmount electricity problem, Mirokhan grid station would be upgraded and a new grid station in Larkana would be constructed.Issues of law and order and unemployment were receiving top priority of the government. “I promise the jobs would be provided at each door of Larkana,” she said.

Sindh Minister for Women Development Department Tauqeer Fatima Bhutto announced that a women’s park would be established in Naudero and called for establishing a women’s university in Larkana.

http://i262.photobucket.com/albums/ii109/traPPed_2008/EconomicPerformance.jpg?t=1206605834

It seems like we have a decent economic growth every 20 years.

*Cough* Army * Cough*

:laugh:

:yes: :yes: :yes:

KARACHI: Ghulam Muhammad, then Finance Minister, presented the annual budget for 1950-51 of Rs1.1564 billion on March 13, 1950.

Major salient features of the budget included allocation of Rs500 million for defense, Rs10 million for the quarters of employees of Pakistan Railways and Pakistan Post.

Other features were the allocation of Rs6 million for 3,000 refugees quarters in Nazimabad, Karachi, Rs1 million for Punjab and Dhaka Universities, Rs3.6 million for Pakistan’s embassies and trade centres in foreign countries, Rs0.3 million for orphanages in Karachi and for the same Pakistani students to study in foreign countries. Rupees 0.35 million were allocated for the nursing schools and Rs0.3 million for the educational schemes in the tribal areas of the country.

Ghulam Muhammad appreciated the developments in defense but confessed that the huge spending on defense is severely affecting the economy but agreed that there was no other way, considering the conflicts with the neighbouring country.

He appreciated the progress of Pakistan Railways (PR) for generating Rs30 million, however, there were predictions of losses to PR in the fiscal year.

He disclosed that four textile units had started their operations while the fifth one would soon start working. For sugar, a very big sugar complex of 8,000 tonnes would start operating in the country. There was no new tax levied in the budget, while some taxes like capital gains tax was withdrawn. Whereas, there were cuts in taxes on meat, fish and some other consumable items for the general public.

There were 38 members of the parliament present when the finance minister presented the budget. While in the guest gallery, were the high commissioners of Sri Lanka, Australia and Canada, and the Ambassador of Myanmar.

http://thenews.com.pk/daily_detail.asp?id=116866

guys just wanted to post, if no body finds in interesting Mod can delete.

^^ No no thats good!

Rs. 1 billion!

Today it is close to one and a quarter trillion rupees, so an improvement of more than a 1000 times, not bad.

Does anyone know anything about the economy of Iraq?

Iraq should be become a very good economic performer in a couple of years once the violence and bloodshed dies out.

^^ The rest of the world hasn't stood still in that time, so our 1000x improvement isn't anything special.

We need to spend at least 5% of our GDP on education before we can really start to improve dramatically. Especially girls education.

South Korea decided in the 60s that they will spend 1/5th of their GDP on education because they only had access to man power, lacking land and other resources. Today, they still spend 19% of their GDP on education, quoting former education minister who was on Geo, and you can see the difference. Their Per Capita income is about 25k, while ours is just 1.

To improve dramatically, we need to spend at least 6 - 10 percent if not more on education.

^^ The rest of the world hasn't stood still in that time, so our 1000x improvement isn't anything special.

We need to spend at least 5% of our GDP on education before we can really start to improve dramatically. Especially girls education.

South Korea decided in the 60s that they will spend 1/5th of their GDP on education because they only had access to man power, lacking land and other resources. Today, they still spend 19% of their GDP on education, quoting former education minister who was on Geo, and you can see the difference. Their Per Capita income is about 25k, while ours is just 1.

To improve dramatically, we need to spend at least 6 - 10 percent if not more on education.

As much as I agree with you guys. Such a large portion of our GDP will never be allocated towards education. lol! The 6-10% figure just makes me laugh. We have always invested around 2% of our GDP towards Education (& 1% towards Health). It was only under Mushy's rule that it got increased to 4%. I was really happy with that. As it was a very shocking but pleasent surprise nonetheless. Its a step in the right direction to reverse the broad underdevelopment of Pakistan's social sector.

And I STRONGLY agree with Brighty's comment about investing and focusing on Girls education!

A link which shows the benefits to society of investing in Girls education, many more links such as these can be found all over the net:

In addition to helping girls and women fulfill their aspirations as individuals, educating girls also has well documented benefits for the broader society. These include increased economic productivity, improvements in health, delayed age at marriage, lower fertility, increased political participation, and generally more effective investments in the next generation. While there are many other possible interventions to achieve these social goods, girls' education is the only one which impacts all of them simultaneously.

Government investment in schooling for girls, especially at the primary school level, is particularly justified in that it brings so many benefits for the broader society. Most governments already have policies affirming primary education, and some apparatus for delivering education exists in virtually all countries. Even in settings with low enrollment for both boys and girls, the argument for governments to focus resources on girls is compelling given the positive effect of girls' education on development. With relatively modest modifications in the content and quality of schooling, teachers and materials, a far higher percentage of girls could enroll in and complete primary school, or remain there long enough to acquire basic literacy and numeracy skills.

Educating girls is associated with numerous social benefits across a variety of sectors.

At the national level, women's education is associated with longer life expectancy, lower infant and maternal mortality, and lower fertility. At the family level, women's education has a major impact on health by increasing access to and use of information, improving use of health services, and increasing the proportion of family income earned by and allocated by women.

Women's education can also mitigate the negative health effects of low income. This has been demonstrated in China, Costa Rica, Sri Lanka, and Kerala, India, where female education is a clear priority of government and health achievements are high, despite family income remaining quite low. Even modest levels of maternal education result in higher child survival independent of family income.

Educated women have lower desired and actual family size. They are also much more likely to use contraception and have longer intervals between births. Among married couples, the wife's education has a much stronger effect on fertility than husband's.

Children of educated mothers, especially daughters, are more likely to receive education.

An example from Pakistan itself:

In Pakistan, mothers' education is the single strongest determinant of schooling for their children, especially for girls.

MORE CAN BE FOUND HERE: http://www.popcouncil.org/gfd/girlseducation.html THIS WAS JUST THE SUMMARISED VERSION! SUCH LINKS CAN BE FOUND ALL OVER THE NET!

Its more much beneficial for society to concentrate on Women and Girls than Men and Boys as Females are the nurturing one and the ones who bring up a family, thus affecting the health (nutritious food vs un-nutritious food) and education (better awareness) of all the family! Which leads to a ripple effect throughout society!

Women rock! :rock:

By Ellen Kelleher

India has long been regarded as a promised land for managers of emerging markets funds. And these days, many are increasing their stakes in companies in Bangalore and Mumbai to take advantage of the recent correction in the Indian stock market – which has lost more than a quarter of its value since the start of the year. But neighbouring Pakistan is also attracting attention as investors are keen to bet on a cheaper satellite market that has yet to be tapped by mainstream investors.

This month’s launch of the Pakistan Opportunities fund by Dalton Strategic Partnership and KASB funds, a local Merrill Lynch affiliate, underscores the budding interest in buying into the Karachi stock market, in spite of a deteriorating local economy that this week led the Pakistani government to seek the deferral of $2bn-worth of oil payments to Saudi Arabia. The fund, which will debut on June 19, is the first Luxembourg-listed UCITs fund to invest exclusively in Pakistani equities.

“In looking at the Pakistan market today, we see many similarities with the Indian economy and stock market five years ago, before it enjoyed its strong rally,” says David Graham, a partner with Dalton. “The Pakistan market has been described as buying India at half price.”

In the short-term, the returns offered by both countries have not been such good value, with the Bombay stock exchange down 30 per cent since January and Karachi’s reporting a fall of 12.7 per cent.

Indian investments, in particular, have come under attack from some analysts, as they – along with Chinese stocks – have dragged down the recent performance of many pan-Asian funds. “From an investor’s standpoint, the recent downturn in the Indian and Chinese markets shows that they cannot be viewed as safe havens from the travails of the world economy,” wrote Ash Kumar, a Morningstar analyst, in a recent note.

But results in the long-term from both Pakistan and India remain enticing. In the past six years, the Bombay Stock Exchange is up 464.8 per cent and Karachi’s has risen even more, reporting a jump of 597 per cent.

“As a long-term investor, these are the times when I want to invest – when other people are hesitant,” says Arun Mehra, manager of Fidelity’s India Focus fund. “As international markets begin to settle and signal the end of the down market, India should stabilise.”

Managers are keen to invest in India’s banking, auto, consumer and mid-cap sectors as well as Pakistani energy, banking, fertiliser and cement companies.

Indian companies favoured by Sam Mahtani, manager of F&C’s Indian investment company, include Larsen & Toubro, the construction group now trading on 25 times next year’s earnings; Hindustan Unilever, which is trading on 25 times forward earnings; the power plant group BHEL on 19 times forward earnings; and ITC, the giant conglomerate that provides much of the country’s tobacco, and trades on 22 times next year’s earnings.

The management team at KASB funds in Karachi backs National Bank of Pakistan, trading on 7.4 times next year’s earnings; Oil and Gas Development on 10 times future earnings; Pakistan Petroleum on 9.7 times next year’s earnings; and Fauji Fertiliser Bin Qas, a fertiliser group trading on 9.3 times forward earnings.

“In Pakistan, there are over 600 listed companies you can play,” reports Naz Kahn, chief executive of KASB funds. “Just six or seven years ago, this was a market that was untouched by overseas investors. But you have a number of favourable trends which are steadying the country’s economy and enticing investors. The oil exploration story is one. The millions of Pakistanis living in the Middle East and sending money home is another. The low level of consumer debt is a third.”

Pakistani stocks are cheaper, on most valuation measures, than those in India. And in spite of political instability, the country’s fundamentals remain fairly strong. Oil and gas stocks look attractive and Pakistani banks have not been affected directly by the credit crisis. Another benefit is that Pakistan – already the world’s ninth-largest producer of wheat and fifth-biggest for sugar cane – is looking to increase its agricultural exports.

Still, India’s long-term story is just as compelling. There are concerns over inflation rising to 7.6 per cent, and the danger that rising food and fuel prices will reverse the poverty reduction that has benefited millions of Indians. But 8 per cent annualised growth in gross domestic product is boosting incomes in New Delhi and Bangalore. And rural areas are undergoing a transformation, too, due to government investment in infrastructure.

So asset managers are still rushing to launch Indian funds – with New Star and Jupiter being two of the latest. New Star’s Indian equity fund, which launches this Monday is to be managed by Tata Asset Management, part of the prominent Tata group. The minimum investment required is £3,500.

Source: Financial Times (http://www.ft.com/cms/s/0/e0bdb0a0-33e9-11dd-869b-0000779fd2ac.html?nclick_check=1)

Pakistan depends too much on oil. This is the main reason Pakistan's economy is hurting.

Good article. Despite the economic and political trouble we've faced, our stock market is doing fairly well.

“In looking at the Pakistan market today, we see many similarities with the Indian economy and stock market five years ago, before it enjoyed its strong rally,” says David Graham, a partner with Dalton. “The Pakistan market has been described as buying India at half price.”

Source: Financial Times (http://www.ft.com/cms/s/0/e0bdb0a0-33e9-11dd-869b-0000779fd2ac.html?nclick_check=1)

Nice article there! :) The bold bit especially caught my eye. I have info which says that our stock market is 5 years ahead of Sri Lanka's and 10 years ahead of Bangladesh's. Here it is:

Bangladesh capital market is following the trend of Pakistan capital market development.

Market Development Lessons can be learnt on the development of Bangladesh’s capital markets from the experience of Pakistan. The Bangladesh stock market can be compared to Pakistan’s in the mid 90s by market cap/GDP. Their equity growth was primarily driven by privatization and the liberalization of foreign investment. There were 108 public sector enterprises (out of a total of 128) initially marked for privatization through public offering, outright auctions, and strategic sales to investors in 1994.By 1996, the number of enterprises to be privatized increased to 118. The injection of substantial public sector listings to the stock market has greatly transformed the sector distribution. The market changed from being textile dominated (22 % of market capitalization in June 1992) to one that revolves around three to ten large-capital stocks. None of these top 10 stocks comes from the textile sector.

The Bangladesh Capital Market: long term prospect

The market capitalization (of DSE) to GDP ratio is only 19%, one of the lowest in the world. The current level of development of the Bangladesh market is similar to that seen in Pakistan and SriLanka in the mid 90s and the early 2000s respectively. Pakistan has a market cap to GDP ratio of 58% whereas it was around 15.6% in 1998. For Bangladesh, increasing FPI, new companies especially MNC and giant Telco’s listing will help the capital market to grow.

LINK: Pages 29 & 31 of http://www.at-capital.com/at/AT%20Capital%...Opportunity.pdf (http://www.at-capital.com/at/AT%20Capital%20Research%20-%20Bangladesh%20-%20Growth,%20Investment,%20Opportunity.pdf)

^^ So all in all. Our Stock Market is 5 years behind India's, 5 years ahead of Sri Lanka's and 10 years ahead of Bangladesh's. Nice info! :)

Pakistan depends too much on oil. This is the main reason Pakistan's economy is hurting.

Dude! Everyone depends on oil for greasing their economies. But atleast, Saudi has given us an extended period of time to pay back the $2bn that we owe them. Thats nice of them. Plus the rising price of oil has forced everyone to look for renewable & non-renewable alternatives, as they are much more viable now. Heck, even our government has started to focus more on Coal now! Tharparkar, one of the poorest areas of Pakistan, has a real chance to boom now! Thanks to power generation through Coal finally getting some attention.

Government working on broad-based industrial policy

RECORDER REPORT

KARACHI (June 08 2008): Federal industries and production ministry has been chalking out a broad-based industrial policy to address problems faced in the growth of industrial development, which contains short-, medium-, and long-term measures to explore import substitution to boost export and bridge the gap of trade deficit.

About problems in the small and medium enterprises (SMEs), there is a lack of infrastructure in the way of SMEs development. For this, the ministry has held meetings with the international donor, ie the Asian Development Bank (ADB) for the establishment of internationally recognised accredited microbiology testing lab, accredited chemical testing lab and accredited footwear-testing labs.

The ministry provided recommendations to the Federal Board of Revenue (FBR) on customs duty relating to the industrial sectors ie other than food, textile and leather. The rationalisation of tariff structure for the competitive production of goods by the local industry is undertaken through budget exercise in the Engineering Development Board (EDB).

The exercise involves 17 to 18 committees on various sectors under the private sector stakeholders. The proposals emerging from these sectors are then analysed in the meeting of convene. The minister identified problems faced by industries in Pakistan as follows:

(i) Relatively narrow industrial base, (ii) low technology base, (iii) predominately low tech goods produced (around 90 percent), (iv) low value addition (textile and leather contribute 12 percent towards GDP), (v) inadequate infrastructure, (vi) multiplicity of procedures, taxes and regulations, (vii) absence of linkages between industry and academia/research institutes, and (viii) security and governance issues.

The ministry identified existing potential areas for investment includes engineering goods industry and services, machine tool, energy equipment, telecommunication, basic industries of forging, castings and foundry work, automobiles, marble, ceramic and stones development, plastic and chemicals, paper and paper board, glass and basic metals offer high potential for industrial development.

The strategies/recommendations of the ministry to address these problems includes (i) reforms in fiscal regime through tariff relaxation/rationalisation, (ii) growth of large scale and hi-tech anchor/main industries, (iii) high incentives for project requiring higher capital investment, long gestation periods, and higher level of technology, (iv) expansion of macro, small and medium enterprises, encourage projects that result in transfer of technology,(v) implement intellectual property rights laws, (vi) develop and implement strategies for rural industrialisation. (vii) reduction in cost of doing business, (viii) establishment of industrial parts/clusters, (ix) quality human resources, (x) development linkages between industry, academia and research institutions, (xi) mandatory certification and accreditation, and (xii) introduction of productivity enhancing reforms.

link (http://www.brecorder.com/index.php?id=752195&currPageNo=1&query=&search=&term=&supDate=)

KARACHI: The budget for 1970-71, presented by Nawab Muzaffar Ali, then Finance Minister, was termed ‘pro-East Pakistan’ as 90 per cent of development funds had been allocated for East Pakistan which was widely appreciated by the general public.

For development of mineral resources, the government would initiate geographical surveys, one in Chaghi, Balochistan with the help of Soviet assistance and other in Rangpur, East Pakistan, with funds of Rs5.5 million.

An amount of Rs3 billion would be spent on defense which would make up 53.8 per cent of the total income of the country.

University of Karachi, with the assistance of Amsterdam University, would undertake research study to find out the problems of big cities. The project would start in July 1970 with the allocated funds of Rs1.5 million.

Educational Television would be started in country with the funds of Rs0.5 million to help students in studies.

Government vowed that the budget is focused to fuel developmental programs in the country, especially in East Pakistan.

It was expected that the Gross Domestic Product (GDP) of Pakistan would be 5.8 per cent.

Overall, Rs400 million in taxes had been announced in the budget, whereas, new taxes had been imposed on paper, stainless steel kitchen items, television sets, iron furniture, and gold and silver jewellery. However, taxes had been removed from less expensive shoes and woollen carpets.

Maulana Ehtasham ul haq Thanvi, then popular critic, had commented on the budget of 1970-71 that it does not meet the expectations of the people and that the new imposition of taxes would further burden consumers. He, however, said that government’s funds for the development projects in East Pakistan would help reduce the feelings of deprivation, which had prevailed in the eastern part of Pakistan.

He added that increase in sales tax would affect the common man. In general, people appreciated the government’s decision to increase funds for East Pakistan and free import of betel nuts in the country.

Dr. Ahsan Rasheed, then Chairman of department of Economics, University of Karachi said that the budget would help the private sector and the overall budget was progressive in nature, which would help the country in the long run.

Yousuf H Sherazi, a businessman, underlined the fact that it can safely be said that this budget is Pro-East Pakistan because Rs1.35 billion had been allocated for East Pakistan out of Rs1.5 billion, which was 90 per cent of the total funds.

http://thenews.com.pk/daily_detail.asp?id=117306

^^ LOL

At least our military spending went down from 53.8% of the GDP :nuts:

Anyway

http://epaper.dawn.com/Web/Article/2008/06/09/605/09_06_2008_605_005.jpg

http://epaper.dawn.com/Web/Article/2008/06/09/606/09_06_2008_606_002.jpg

http://epaper.dawn.com/Web/Photographs/2008/06/09/151/09_06_2008_151_006_001.jpg

Aren't we becoming somewhat a web-crawler?

The articles have good info. Lots of stats. What's wrong with posting these in the economic thread? :dunno:

Like the last one posted tells us that 8 million people have moved out of poverty between 2001 and 2004 alone. If only people read what is posted.

The articles have good info. Lots of stats. What's wrong with posting these in the economic thread? :dunno:

Like the last one posted tells us that 8 million people have moved out of poverty between 2001 and 2004 alone. If only people read what is posted.

Not that I don't appreciate the articles that you post, as they are very informative. But the thing is that, some of the threads are bombarded with articles and reading them is very hard as the text is so tiny. It would be better if just 1 or 2 such articles are posted per day, per thread.

I highly agree with the last article though. The Middle Class is the backbone of the economy, but unfortunately in Pakistan, no attention is ever given to the Middle Classes. They always get squeezed, whilst they are the hardest workers in Paksitan. Where as in rich nations like USA/UK, Middle Classes get a lot of attention and have a nice quality of life. No wonder than that only the Working Class are regarded as being poor in USA/UK, where as the Middle Classes and above are regarded as being Rich. It should be the same in Pakistan, but sadly thats not the case, as no one even cares about the Middle Classes.

Survey projects 11 per cent inflation, 5.5pc growth

By Iftikhar A. Khan

ISLAMABAD, June 9: The gross domestic product (GDP) growth rate for the fiscal year 2008-09 has been projected at 5.5 per cent, with estimated contributions of 3.5, 6.1 and 6.1 per cent by agriculture, manufacturing and services sectors respectively.

According to the Economic Survey, to be officially released on Tuesday, the total required investment to attain the projected growth target has been projected at Rs2,638.8 billion, 17 per cent higher than last year’s level.

As a ratio of GDP, total investment is expected to stay around last year’s level (21.5 per cent of GDP). For financing the required investment, national savings as a ratio of GDP are projected to increase to 14.3 per cent in 2008-09.

The inflation rate has been projected at 11 per cent. However, the inflation scenario will remain sensitive to international price movements.

Exports are projected to grow by 16 per cent to $22.9 billion. Imports are projected to increase by 6.5 to $37.2 billion during the next fiscal year.

Remittances have been projected at $7.7 billion and the current account deficit is estimated to be $12.7 billion or 7.7 per cent of GDP.

The survey says the main objective of the fiscal policy will be to keep the deficit within a sustainable limit by furthering reforms in the tax system, broadening tax base, improving tax compliance, minimising tax evasion and allocating adequate resources for development activities.

Monetary expansion will be in line with the projected GDP growth rate of 5.5 per cent and inflation of 11 per cent. “It is imperative that government borrowings be limited to a safe level to keep the money supply growth rate in the vicinity of the targeted level and encourage private sector credit. This will also help in keeping the inflation rate at targeted level,” the survey says.

The Public Sector Development Programme (PSDP) for 2008-09 lays emphasis on maintaining momentum of growth, realisation of core MTDF objectives, especially reducing poverty and achieving the Millennium Development Goals. The size of the PSDP for 2008-09 is Rs523 billion, including foreign loans of Rs67 billion.

The five major priorities of the PSDP are: a comprehensive support programme for the poor, overcoming the water and energy crises, developing Balochistan, the NWFP and special areas, reviving growth in agriculture and manufacturing and building up human resources to compete in a global economy.

An amount of Rs20.3 billion has been allocated for ongoing and fresh agriculture development projects. The water sector has been given high priority with an allocation of Rs75 billion.

An allocation of Rs76.2 billion, including foreign aid of Rs16.3 billion, will be allocated for the power sector in 2008-09. An amount of Rs4.6 billion has been earmarked for the manufacturing sector.

The transport sector has been given Rs60.6 billion, including Rs36.5 billion for the National Highway Authority.

An allocation of Rs6 billion has been made for basic and college education projects. An amount of Rs19.1 billion has been allocated for 260 ongoing development projects of universities.

An amount of Rs4 billion has been allocated for science and technology and Rs5.5 billion for information and communication technology. The allocation for the health sector stands at Rs19.9 billion.


DAWN (http://www.dawn.com/2008/06/10/top13.htm)

I am soooooooooo pissed off right now :mad2:

Trade deficit at record high of $18.7bn

By Mubarak Zeb Khan

ISLAMABAD, June 9: Pakistan’s trade deficit swelled to an unprecedented $18.756 billion in the first 11 months of the current fiscal year, up 52 per cent from $12.311 billion for the same period last year.

The extraordinary increase in trade deficit is the outcome of the spending on import of oil, foodstuff and consumer items like mobile phones.

On import of wheat alone, Pakistan spent $770 million to overcome its shortage during the outgoing fiscal year.

The oil import bill may swell to over $11 billion by the end of the current fiscal year, against over $7 billion last year, an increase of 40 per cent.

Analysts said the trade deficit this year might reach $21 billion. Last year, the deficit for the whole year was $13 billion.

Fall in agricultural yields also pushed the government to spend foreign exchange reserves during the current fiscal year, while bill for importing industrial raw materials and machinery declined during the period under review. The period also saw industrial output declining by four per cent.

Official figures obtained by Dawn on Monday showed that the import bill had increased by 29.56 per cent to $35.943 billion in July-May 2007-08, against $27.743 billion last year. It increased by 3.883 per cent in May 2008 when it stood at $3.883 billion, against $2.750 billion in the same month last year.

Unexpectedly, exports grew by 11.37 per cent to $17.186 billion in July-May 2007-08, against $15.432 billion last year. The export growth recorded an increase of 22.61 per cent in May 2008 when it stood at $1.946 billion, against $1.58 billion last year.

The government has projected a $19.2 billion export target for 2007-08 on the assurance of the textile industry to edge up its exports to over $11 billion. The textile exports has witnessed a negative growth over the past few months and it may not cross even the $10-billion mark this year.

A commerce ministry official said that the export target was likely to be achieved by end-June. The rupee depreciation and robust growth in non-textile exports would help in achieving the target, the official added.

Official statistics showed that Pakistan’s current account deficit surged to between 7.3 and 7.8 per cent of GDP. The fiscal deficit has spiralled to close to nine per cent but the government expects to bring it down to 6.5 per cent.


DAWN (http://www.dawn.com/2008/06/10/top14.htm)

:down:

KARACHI: Ghulam Ishaq Khan, then Finance Minister of Pakistan delivered the longest budget speech for fiscal year 1980-81 in the history of Pakistan.

The budget for 1980-81 had two distinctive characteristics. It was the longest budget speech in the federal history of Pakistan that started at 5:30pm and ended at 7:30pm. And the finance minister delivered his speech in Urdu, whereas generally budget speeches are delivered in English. Thus, the gesture was widely admired by different sections of the society.

Ghulam Ishaq Khan had presented the budget of 1980-81 with the expected income of Rs44.35 billion, which was 15 per cent more than the expected income of the last budget. “This year, additional earning of the government would be Rs1.587 billion from excise duty, Rs1.15 from customs, Rs1 billion from income tax and Rs669 million through sales tax.”

The budget was widely accepted as people-friendly and balanced. Moreover, hoarders and stockists had been active in fuelling the prices of essentials before the budget causing uncertainty, which was finally ended with the budget, the editorials of some newspapers said.

Due to new unfavourable developments at the borders of Pakistan, Khan said, Pakistan had no choice but to spend more on defence, adding “this year we would spend Rs14.834 billion, which is Rs1.528 billion more than the previous budget.”

The subsidy rates had decreased, which would raise the prices of sugar and flour. Flour prices would be Rs1.25 per kg and sugar would be Rs6 per kg, which was previously Rs4.80 per kg. Khan said that like previous year, the country would achieve over 6 per cent GDP growth and that the GDP growth target this year would be 6.6 per cent. However, Rs26.46 billion would be spent on Public Sector Development Programme (PSDP), with the better economic conditions overall.

Salaries of the civil and military personnel who earn up to Rs1,500 would get an additional Rs30 per month, as inflation allowance and private employees of the same salaries would get an allowance of Rs40 per month. There were 0.620 million pensioners in the country and they would get an increase of Rs40 to Rs200 according to their grades at the time of retirement, he said, adding, this would add Rs1.10 billion to the government exchequer. Bashir Jan Muhammad, then President of Karachi Stock Exchange welcomed the budget and demanded that share earning should be exempted from taxes

Package of relief for the poor

By Ihtasham ul Haque

ISLAMABAD, June 9: The budget for 2008-09 will offer Rs100 billion in relief to people in low-income groups, pensioners and salaried class, enhance old-age benefits and unveil an employment scheme.

Dawn learnt on Monday that Saudi Arabia had agreed to provide a grant for the ‘Prime Minister’s Special Support Initiatives’. The grant will be in addition to the Saudi supply of oil on deferred payment.

The budget will also include a 15 per cent increase in government employees’ salary.

Public sector corporations have been asked to offer similar increases, especially to their low-grade employees.

The budget will also contain more contributions from private sector employers, including banking and services sectors, to extend social security to people earning up to Rs10,000 a month. Under the existing programme, this facility would be only for people earning a maximum of Rs5,000 a month.

Similarly, minimum pensions will be increased from Rs1,500 per month to Rs2,000. There is also a proposal to increase the pension for higher groups.

Both public and private sectors have been asked to offer enhanced old-age benefits to their employees for which the government would contribute funds during the next financial year.

Under the ‘National Internship Programme’, remuneration, being paid only to post-graduates, will also be offered to graduates.

The source said that poor and low-income groups would get up to Rs1,200 a month, besides certain commodity support.

The Planning Commission has identified 5.6 million households for help.


DAWN (http://www.dawn.com/2008/06/10/top5.htm)

ISLAMABAD: A consortium of four steel mills will establish an integrated steel mill at Kalabagh, The News has learnt. The planned steel mill would have annual capacity of producing one million tonnes of steel using indigenous iron ore excavated from Kalabagh and Chiniot.

Kalabagh and Chiniot have known deposits of iron ore that have not yet been excavated and utilised by the local steel industry, as importing iron ore, iron and steel scrap was cheaper than mining local ore a capital-intensive venture.

With global steel and iron ore prices skyrocketing the steel makers have finally decided to excavate and exploit local reserves. Pakistan Steel Mills is already using ore from Caghi, Balochistan.

The consortium comprising four companies include Mughal Steel, Star Cotton Corporation, Pak Steel and Ittehad Steel Mills. They have already incorporated a company under the name of ‘Indus Consortium Mining & Steel Industry (Pvt) Ltd’ with Securities and Exchange Commission of Pakistan (SECP), sources in the ministry of Industry & Production (MOIP) told this correspondent.

The company has also submitted an application to the DG (Mineral), Punjab for the grant of lease for 2000 acres at Kalabagh and 1000 acres at Chinot, they added.

Pakistan Steel Mills (PSM) is the only integrated mill in the county with a capacity of 1.1 million tonnes per annum. PSM was making steel prtoducts from 100 per cent imported ore and coke India, Iran and Australia. However, in last few years it has started using ore from Chaghi and imports ore only to meet the shortfall in local supply.

The steel industry of Pakistan consists of steel smelters, re-rollers, PSM, foundries, ship breakers and line pipe industry.

Increase in the international prices of iron ore, coking coal, metallurgical coke forced policymakers to either reduce import tariff or explore new venues to meet steel demand said an official of the Engineering De elopement Board (EDB).

A policy institute for the development of engineering sector in the country EDB is also encouraging and facilitating the PSM to increase the use of local iron ore and coal in the blend for manufacturing steel, the same official added.

Giving the details of the agreement for increasing steel production, the official said that a private firm AMCO Minerals would supply 15,000 tonnes of iron ore from Chaghi. It is already supplying 5,000 tonnes to the PSM. Similarly, another iron ore supplier from Chaghi is in negotiations with PSM administration for supplying ore.

The PSM has signed an agreement for the supply of 60,000 tonnes of iron ore concentrate with Saindak Metals and a similar supply agreement of 65,000 tonnes of Sharigh coal has also been signed, the official added.

The smelting capacity in the country is around four million tonnes of ingots and billets. The total number of re-rollers is 276 with an estimated capacity of 4 million tonnes whereas the ship breaking industry supplies around 600,000 to 900,000 tonnes of ship plates to the re-rolling industry.

PAKISTAN ECONOMIC SURVEY 2007-2008 : GROWTH AND INVESTMENT - CHAPTER ONE (http://www.finance.gov.pk/admin/images/survey/chapters/01-Growth08.pdf)

VI. Per Capita Income

Per capita income is treated as one of the foremost indicators of the depth of growth and general wellbeing of an economy. Despite the array of recent and more sophisticated tools to measure growth, development, and economic advancement, none
match the historical importance and the simplicity of per capita income as a measure of the average level of prosperity of an economy. Per capita income, defined as Gross National Product at market price in dollar term divided by the country’s population, has grown at an average rate of above 13.0 percent per annum during the last five years rising from $ 586 in 2002-03 to $ 925 in 2006-07 and further to $ 1085 in 2007-08 [See Fig-1.4]. The main factor responsible for the sharp rise in per capita income include acceleration in real GDP growth, and four fold increase in the inflows of workers’ remittances. Per capita income in dollar term rose from $ 925 last year to $ 1085 in 2007-08, depicting an increase of 18.4 percent.

Congratulations are in order at the marvellous performance of the Pakistani Economy - an Economic Miracle credit for which goes to Finance & Prime Minsiter Shaukat Aziz.

In contrast India’s per capita income is INR 33,299 which at USD = INR 42 Equates to only USD 792.

REVISED ANNUAL ESTIMATES OF NATIONAL INCOME, 2007-08 (http://mospi.nic.in/pressnote_gdp2007_08_30may08.pdf)

Per Capita Income

11. The per capita income at current prices during 2007-08 is estimated to attain a level of Rs.33,299 as compared to the Quick Estimates for the year 2006-07 of Rs.29,642,showing a rise of 12.3 per cent.

Thus Pakistan’s Per Capita Income is about 37 Per Cent Higher than that of India’s.

Cheers:cheers:

DAWN (http://www.dawn.com/2008/06/10/top13.htm)

I am soooooooooo pissed off right now :mad2:

So we're only going to grow by 5.5% next year??? Down from 5.7% now???

Anyways can anyone explain this to me. With Inflation being at 11% and GDP Growth being at just 5.5%, doesn't that mean that we are actually becoming poorer by 5.5%??? As we studied that if Inflation is at 5% and the GDP Growth rate is at 10%, then your economy has grown by 5%. By that logic our economy has gone down by 5.5%. I'm really confused. :?

DAWN (http://www.dawn.com/2008/06/10/top14.htm)

:down:

I don't blame the government for this. The whole world is suffering from Oil and Food Price shocks!

Btw, Brighty can you please not paste the articles between the two tags of "[*Quote*][*/Quote*]" as it makes it hard to reply to the articles.

http://newsimg.bbc.co.uk/media/images/44560000/gif/_44560868_projected_food_2_p466.gif

Won't post more as you guys don't like charts or graphs. So here's the link to all of it: http://news.bbc.co.uk/1/hi/7284196.stm

So we're only going to grow by 5.5% next year??? Down from 5.7% now???

Anyways can anyone explain this to me. With Inflation being at 11% and GDP Growth being at just 5.5%, doesn't that mean that we are actually becoming poorer by 5.5%??? As we studied that if Inflation is at 5% and the GDP Growth rate is at 10%, then your economy has grown by 5%. By that logic our economy has gone down by 5.5%. I'm really confused. :?

I don't blame the government for this. The whole world is suffering from Oil and Food Price shocks!

traPPed :

PAKISTAN’S ECONOMIC SURVEY 2007-2008 : CHAPTER 04 - FISCAL DEVELOPMENT (http://www.finance.gov.pk/admin/images/survey/chapters/04-Fiscal%20Development08.pdf)

SUMMARY OF PUBLIC FINANCE (CONSOLIDATED FEDERAL AND PROVINCIAL GOVERNMENTS) - TABLE : 4.2

GDP (mp) in Rs. Billion

2006-2007 : 8,723

2007-2008 : 10,478

Thus Increase in GDP = 20.1%

As such the GDP Growth of 5.7% allows for the Inflation and therefore is the “Net” Increase

Cheers:cheers:

^^ Oh! Thanks! :) I just wondered whether the effect of inflation was taken into account or not! Thanks! But I still don't get it. Should 20.1% minus 11% leave 9.1%???

Thanks for the data Naresh! :cheers:

I think the government should follow a tight monetary policy to cut inflation.


Btw, Brighty can you please not paste the articles between the two tags of "[*Quote*][*/Quote*]" as it makes it hard to reply to the articles.

I deliberately put them in the quote tags. Internet ettiquite states you're not supposed to quote long articles posted nearby. It makes it hard to scroll. I always leave a link at the bottom which can be clicked to see what you're replying to if someone is confused.

KARACHI: More than one fourth of Public Sector Development Program (PSDP) was reserved for energy sector in the budget of 1990-91.

Ehsanul Haq Paracha, then Finance Minister of Pakistan presented the budget of Rs230.18 billion with the new taxes of Rs10 billion.

There had been Rs9.5 billion new taxes in the budget with 10 per cent increase in the government employees’ interim salaries and 5 per cent interim relief for pensioners.

There had been an increase in the duty of over 1300 CC cars, increase in duty of tobacco, more taxes on advertising rates of cigarettes, drinks, perfumes and decorating items.

For health, there had been little increase and Rs718.2 million allocated this year, which was Rs715.9 million last year. Education was allocated Rs2.282 billion which was Rs2.078 billion in the last budget. For defence expenditures, government had allocated Rs63.27 billion which was Rs61.92 billion in the last budget.

This year Rs63 billion were allocated for Public Sector Development Program (PSDP) in which Rs16.82 billion reserved only for energy sector, maximum funds for a single sector, while PSDP is targeted to achieve real GDP growth of 5.5 per cent, to decrease the inflation 7 per cent from 7.6 per cent.

To handle the Rs20 billion budget deficit, government with the levy of new taxes get Rs14.11 billion and rest would be square by tax reforms in the country and taking loans from banks.

The minister announced the grant of Rs20 million for the Press Foundation and Rs10 million for the Islamabad Press Club. A grant of Rs20 million for the minority fund.

Telephone call rates (domestic) were increased from 90 paisa to 100 paisa and line rent was increased from Rs30 to Rs50.

Passport fee (ordinary) was raised to Rs400 from Rs300 and fee for urgent passport was raised to Rs1,200 from Rs9,00.

For law and order, funds of Rs3.30 billion were allocated which was Rs3.36 billion last year.

So we're only going to grow by 5.5% next year??? Down from 5.7% now???

Anyways can anyone explain this to me. With Inflation being at 11% and GDP Growth being at just 5.5%, doesn't that mean that we are actually becoming poorer by 5.5%??? As we studied that if Inflation is at 5% and the GDP Growth rate is at 10%, then your economy has grown by 5%. By that logic our economy has gone down by 5.5%. I'm really confused. :?



I don't blame the government for this. The whole world is suffering from Oil and Food Price shocks!

Btw, Brighty can you please not paste the articles between the two tags of "[*Quote*][*/Quote*]" as it makes it hard to reply to the articles.
Food prices shouldn't affect a supposed agricultural country much. But we suck at agriculture.

So we're only going to grow by 5.5% next year??? Down from 5.7% now???

5.7% is the prediction for the 2007-2008 financial year. This was originally 7.2% which was downgraded to 7% which was downgraded to 6% which was downgraded to 5.7%

The projection I posted is for 2008-2009. I guess after this embarrassment, they're putting out a conservative projection so that if the economy actually does better than that they make themselves look good.

Thanks for the data Naresh! :cheers:

I think the government should follow a tight monetary policy to cut inflation.


brightside :

The Governments - be they of Pakistan, India, Sri Lanka or Bangladesh - can do Diddly Squat to cut inflation as long as the Oil “Wallas” do not allow the prices to come down to a maximum of USD 50 per Barrel.

SaimuRathka :

Food prices shouldn't affect a supposed agricultural country much. But we suck at agriculture.

In addition to Seeds, Water and Labour the Agriculture Sector needs Fertilizers, Pest Control and Diesel Oil for the Pumps-Tube Wells as well as Tractors and Harvesters and of course Trucks for Transportation of their Produce.

With Oil approaching USD 150 per Barrel - even USD 200 may be broached - the Agricultural Sector in Pakistan, India, Bangladesh and Sri Lanka can’t help but be labelled with the term “suck”

Bhai Ji, the Zulti Zillionaire Arabs - laughing and labouring all the way to the Bank with Tonnes of US Dollars - need help from India and Pakistan to get “Cheap” Rice :

Saudi Arabia seeks India's help on rice shortage (http://timesofindia.indiatimes.com/Saudi_Arabia_seeks_Indias_help_on_rice_shortage/articleshow/3055587.cms)

DUBAI : Reeling under shortage of rice, Saudi Arabia, one of the world's top rice buyers, has approached India to discuss issues relating to its supply, including possible lifting of restrictions on exports to the Kingdom.

The Council of Saudi Chambers of Commerce and Industry is in touch with Indian officials on the issue of rice imports, Rajeev Shahare, deputy chief of the Indian embassy in Riyadh, said.

The whole issue of Indian rice exports to Saudi Arabia was discussed during the visit of Montek Singh Ahluwalia, deputy chairman of Planning Commission, to the Kingdom early this month, said Shahare, adding that there was no export ban on high-quality Indian basmati rice.

India, the world's second-biggest rice exporter and a main supplier to the Gulf region, banned all non-basmati rice shipments in March.

Shahare said India had been exporting 500,000 to 600,000 tons of rice, mainly basmati, to Saudi Arabia annually.

Last year Saudi Arabia imported a total of 960,000 tons of rice, making it the world's sixth biggest rice importer.

Around 70 per cent of the Kingdom's rice imports were basmati rice, mainly from India, while Thai rice accounted for 10 per cent.

The Kingdom and the UAE are now securing more rice from Thailand to meet growing domestic demand, news reports said.

Thus if the price of Oil remains in the USD 125 - 200 Range then there is very little that our Governments can do to help the Agricultural Sector.

Cheers:cheers:

Food prices shouldn't affect a supposed agricultural country much. But we suck at agriculture.

Read the article posted by Brighty in the Agriculture thread n you'll understand why, not just us, but the whole developing world sucks at agriculture, where as the rich world doesn't and is quicker to react to the changes and oppourtunities available.

does anyone know if this statement in bold on the IT Tower website is correct "Karachi has the highest per capita income in South Asia and its estimated population is 16 million, which is expected to reach 32 million by 2025"

does anyone know if this statement in bold on the IT Tower website is correct "Karachi has the highest per capita income in South Asia and its estimated population is 16 million, which is expected to reach 32 million by 2025"

No way! Cities in Sri Lanka, like Colombo and Kandy, especially Colombo, has a higher Per Capita Income than Karachi. So does Male in Maldives and Islamabad too. But as far as I know, it does beat cities in India, B'desh and Nepal. Or did according to AsiaWeek. You know how Pakistanis love to exaggerate everything!

PAKISTAN ECONOMIC SURVEY 2007-2008 : GROWTH AND INVESTMENT - CHAPTER ONE (http://www.finance.gov.pk/admin/images/survey/chapters/01-Growth08.pdf)

VI. Per Capita Income

Per capita income is treated as one of the foremost indicators of the depth of growth and general wellbeing of an economy. Despite the array of recent and more sophisticated tools to measure growth, development, and economic advancement, none
match the historical importance and the simplicity of per capita income as a measure of the average level of prosperity of an economy. Per capita income, defined as Gross National Product at market price in dollar term divided by the country’s population, has grown at an average rate of above 13.0 percent per annum during the last five years rising from $ 586 in 2002-03 to $ 925 in 2006-07 and further to $ 1085 in 2007-08 [See Fig-1.4]. The main factor responsible for the sharp rise in per capita income include acceleration in real GDP growth, and four fold increase in the inflows of workers’ remittances. Per capita income in dollar term rose from $ 925 last year to $ 1085 in 2007-08, depicting an increase of 18.4 percent.

Congratulations are in order at the marvellous performance of the Pakistani Economy - an Economic Miracle credit for which goes to Finance & Prime Minsiter Shaukat Aziz.

In contrast India’s per capita income is INR 33,299 which at USD = INR 42 Equates to only USD 792.

REVISED ANNUAL ESTIMATES OF NATIONAL INCOME, 2007-08 (http://mospi.nic.in/pressnote_gdp2007_08_30may08.pdf)

Per Capita Income

11. The per capita income at current prices during 2007-08 is estimated to attain a level of Rs.33,299 as compared to the Quick Estimates for the year 2006-07 of Rs.29,642,showing a rise of 12.3 per cent.

Thus Pakistan’s Per Capita Income is about 37 Per Cent Higher than that of India’s.

Cheers:cheers:

Hi,

There is a need to clarify something here: Pakistan's GDP is estimated to be 10.4 trillion rupees in 2007-2008, which would equate to 61,176 rupees/person (assuming 170 million people). Further, with the currency exchange rate being 68RS/$1 US, that would imply a per capita gdp of $900 US. The reason for the figure of $1,085 US in the above article is that they're not taking into account population growth and currency rate difference from prior year.

In India's case, the Rs 33trillion GDP is based on 1999 prices (as in it is looking only at real gdp growth from that point and excludes inflation). The nominal gdp is estimated at Rs 43 trillion, and given its 1,130 million people, this would equate to a per capita gdp of Rs 38,053. With the exchange rate of Rs 40/$1 US, this would be equal to $951 US in per capita gdp.

Hence, they're both similar. A true indicator of wealth is Purchasing Power Parity as it measures true buying power of people given their incomes and the cost of all goods and services. Per capita gdp can fluctuate widely based on currency exchange difference and inflation (and is not a true indicator of wealth in a nation).

Cheers! :)

Hence, they're both similar. A true indicator of wealth is Purchasing Power Parity as it measures true buying power of people given their incomes and the cost of all goods and services. Per capita gdp can fluctuate widely based on currency exchange difference and inflation (and is not a true indicator of wealth in a nation).

Cheers! :)

I agree with you there! PPP is a way better indicator of the wealth of a nation, then Nominal GDP Per Capita. Thank God they brought in PPP, otherwise the wealth of some nations was overestimated and for some it was underestimated!

5.8 percent GDP growth in 2008

RECORDER REPORT
ISLAMABAD (June 10 2008): The Finance Ministry has projected 5.8 percent growth in GDP in 2007-08, with 5.4 percent in manufacturing, 4.8 percent in large scale manufacturing (LSM), and only 1.5 percent in the agriculture sector.

ECONOMIC SURVEY HIGHLIGHTS:


-- Debt burden rises to 56 percent;

-- Agri growth declines to 1.5 percent;

-- Budget deficit to be 4.7 percent of GDP;

-- Inflation at 10.5 percent;

-- External inflows decline to 82.2 percent;

-- Subsidy on fuel to cost Rs 175 billion;

-- Per capita income shows a rise of 18.4 percent;

-- Finance and insurance show 17 percent growth;

-- Investment decreases to 21.6 percent of GDP;

-- National savings rate declines to 13.9 percent;

-- Forex reserves show depletion of $4.1 billion;

-- Assets of banking system registers net expansion of Rs 203.1b, to Rs 5155 billion;

-- There has been reduction in poverty headcount;

-- Credit to private sector grows while portfolio investment shows deceleration.


According to the 'Economic Survey 2007-08', to be unveiled on Tuesday by Finance Minister Naveed Qamar, along with Special Secretary, Finance, Dr Ashfaque Hasan Khan, in 'P' Block auditorium of Pak Secretariat, public debt burden increased from 55.2 percent of GDP to 56 percent during 2007-08 due to huge burden of deficits.

In addition, public debt, as percentage of GDP, rose for the first time in 10 years as borrowing requirements for the budget deficit rose to Rs 683.4 billion during the outgoing financial year.

At the end of the current fiscal year, budget deficit is expected to be 4.7 percent of GDP, whereas average inflation has been projected at 10.5 percent. The country's budget deficit is expected to be Rs 683.4 billion, or 6.5 percent of the GDP--highest in the past 10 years.

Actual interest payments were Rs 503.2 billion for the outgoing fiscal year, against the budgeted figure of Rs 375 billion. Pakistan, which according to the previous government was considered one of the fast growing Asian economies, is now showing 13.3 percent increase in its debt, totalling $45.9 billion--by the end of March, 2008.

The figures released by the Economic Survey are not for the entire fiscal year, but up to March this year. According to the Survey, during the outgoing fiscal year M2 growth was entirely attributable to government borrowing for budgetary support, and Net Domestic Assets (NDAs) of banking system increased by Rs 656 billion due to borrowing for deficit financing. Net Foreign Assets (NFAs) of banking systems contracted by Rs 289 billion for 2007-08.

The Survey further shows that external inflows were adversely affected during the year, declining to Rs 119.4 billion, an overall 82.2 percent, or Rs 564 billion, of the budget deficit financing came from domestic sources, like banks and other financial institutions.

Subsidy on fuel will cost Rs 175 billion to the national exchequer despite recent increases in the prices of oil products by the present government. A massive slippage of Rs 324 billion has been recorded under other expenditures, and the Public Sector Development Program (PSDP) has been slashed by Rs 100 billion to rein in the deficit.

In the agriculture sector, sugarcane crop registered the highest ever production, of 63.9 million tons, while rice production showed a modest growth of 2.3 percent, to 5.6 million tons.

Cotton crop production has been estimated at 11.7 million bales against 12.9 million bales of 2006-07, and wheat crop production is estimated at 21.7 million tons against 23.3 million tons in the preceding year. The wheat figure remains controversial.

Per capita income showed a rise of 18.4 percent, from $925 to $1085, and real private consumption expenditure rose by 8.5 percent. Finance and insurance sector have registered a stellar growth of 17 percent, whereas external inflows were adversely affected, declining to Rs 119.4 billion.

Growth of small scale manufacturing sector has been recorded at 7.5 percent. The Survey further shows that investment decreased to 21.6 percent of GDP in 2007-08, from 22.9 percent in 2006-07. National savings rate declined to 13.9 percent from 17.8 percent of last year. :ohno:

Pakistan's forex reserves have shown a significant depletion, of $4.1 billion, during three quarters of the outgoing fiscal year :ohno: and, at the same time, assets of the banking system registered net expansion of Rs 203.1 billion, to Rs 5155 billion.

The Survey has shown that domestic debt increased by 15.7 percent--till end-March 2008--and current account deficit rose due to large trade deficit and outflow from services and income accounts of last year.

There has been reduction in poverty headcount, from 23.94 percent in 2004-05 to 22.32 percent in 2005-06. Pakistan's total population was estimated at 160.9 million.

Total labour force (ten years and above) was estimated at 111.39 million; national average of labour force participation rates total were estimated at 45.2 percent. :down: Pakistan's population has been forecast to double by 2045, if it continues to grow at the current rate of 1.8 percent.

Credit to private sector grew by 14.9 percent due to bridge financing requirements to settle claims of oil marketing companies (OMCs) and independent power producers (IPPs). Portfolio investment shows large deceleration, whereas mutual fund industry grew from Rs 25 billion to Rs 313 billion.

source: http://www.brecorder.com/index.php?id=7528...m=&supDate= (http://www.brecorder.com/index.php?id=752882&currPageNo=1&query=&search=&term=&supDate=)

I deliberately put them in the quote tags. Internet ettiquite states you're not supposed to quote long articles posted nearby. It makes it hard to scroll. I always leave a link at the bottom which can be clicked to see what you're replying to if someone is confused.

But I'm asking you not to. Pleaseeeee!!!!!!!! Screw Internet ettiquite!!!

Very soon I might stop coming into this thread, because I feel more and more angry every day I come here. Economy taking a nosedive.

PPP is the gayest invention since gayness itself. It only works in a select few scenarios. About 5% of the times, the rest of the times it's just used so that gay economists can feel better about themselves. It assumes, for example, that if an apple costs Rs. 2 in Pakistan and Rs. 4 in the US, then the exchange rate is 2:4 or some shit like that. Well Einstein, we don't just fucking buy apples or some basket of goods that some economist pulled out of his ass. There are millions of things and there is NO CORRELATION. For example, cars cost less in the US, so I guess Pakistan, in general, is more expensive. Also, the GDP consists of several things, a lot of which are bought in the international market and you just can't use PPP there.

PPP is based on the assumtion that everything will cost the same everywhere. And that's the most ridiculous assumption ever ever ever ever ever. And hence the whole system is a fraud used by poor bitch countries to feel better. Case closed.

The PPP simply measures the ability of a country's citizens to purchase a certain basket of goods. If for example an apple costs Rs 2 in Pakistan, and most people are paid Rs. 1 per day, and if an apple costs Rs. 6 in the US and people are paid Rs.10, this is the kind of thing the PPP equalizes by taking into account the different costs of living and average nominal income of the citizens.

For example our nominal per capita income is $1085, but our PPP/capita is around $3300

PPP is the gayest invention since gayness itself. It only works in a select few scenarios. About 5% of the times, the rest of the times it's just used so that gay economists can feel better about themselves. It assumes, for example, that if an apple costs Rs. 2 in Pakistan and Rs. 4 in the US, then the exchange rate is 2:4 or some shit like that. Well Einstein, we don't just fucking buy apples or some basket of goods that some economist pulled out of his ass. There are millions of things and there is NO CORRELATION. For example, cars cost less in the US, so I guess Pakistan, in general, is more expensive. Also, the GDP consists of several things, a lot of which are bought in the international market and you just can't use PPP there.

PPP is based on the assumtion that everything will cost the same everywhere. And that's the most ridiculous assumption ever ever ever ever ever. And hence the whole system is a fraud used by poor bitch countries to feel better. Case closed.

Despite the fact that your post was entertaining and made me laugh. I would like to give the example of Nigeria. Due to all of its Oil revenue, which just goes into the pockets of a few, Nigeria is considered to be richer (http://upload.wikimedia.org/wikipedia/commons/7/70/GDP_nominal_per_capita_world_map_IMF_2007.PNG) than both India and Pakistan, according to Nominal GDP Per Capita. Which is just bollocks! As it has way more people, as a percentage, living below the international poverty line. So how the hell can it be considered to be richer than Both India and Pakistan? What a load of Bull! Where as, by looking at PPP, you get to see the true picture. By PPP, Nigeria rightfully comes below both India and Pakistan.


India $ 2,700
Pakistan $ 2,600
Nigeria $ 2,200


Source: CIA World Factbook

The PPP simply measures the ability of a country's citizens to purchase a certain basket of goods. If for example an apple costs Rs 2 in Pakistan, and most people are paid Rs. 1 per day, and if an apple costs Rs. 6 in the US and people are paid Rs.10, this is the kind of thing the PPP equalizes by taking into account the different costs of living and average nominal income of the citizens.

For example our nominal per capita income is $1085, but our PPP/capita is around $3300
That's exactly what's wrong with it. People buy several things besides a stupid basket of goods. And in different proportions. Also, the prices of things within the basket also vary by different amounts.

Summarily, PPP doesn't mean jack.

India $ 2,700
Pakistan $ 2,600
Nigeria $ 2,200


Source: CIA World Factbook

This is very outdated.

Check the IMF figures here (http://www.imf.org/external/pubs/ft/weo/2006/02/data/weorept.aspx?sy=2003&ey=2007&scsm=1&ssd=1&sort=country&ds=.&br=1&c=512%2C518%2C513%2C558%2C514%2C564%2C516%2C853%2C522%2C566%2C924%2C862%2C819%2C813%2C534%2C524%2C536%2C578%2C826%2C537%2C544%2C866%2C548%2C846%2C556%2C582&s=PPPPC&grp=0&a=&pr1.x=43&pr1.y=17). In 2008 we're at $3300.

^^ I was just giving an example.

That's exactly what's wrong with it. People buy several things besides a stupid basket of goods. And in different proportions. Also, the prices of things within the basket also vary by different amounts.

Summarily, PPP doesn't mean jack.

PPP should not be used to judge the economic influence and strength of a country compared to other countries.

But, PPP is very important to judge how well off the average person is. Making $10,000 in Pakistan is very different to making $10,000 in Germany, for instance, and, you need the PPP to tell you that. The person making $10,000 in Pakistan is much better off than the person making $10,000 in Germany because of price levels.

The criticism against the basket then applies to other things like consumer price indices and inflation as well. Then should we stop with that too? Everyone of the 170 million people will have different things in their basket, but, this is a good estimation of what the average person spends his money on. Similarly, you also get a good estimate of the price levels by averaging the price levels of the goods in the basket. I mean, you could make the argument that GDP/capita doesnt really show you the real incomes of people just puts an average figure based on total economic output and population size. GDP/capita is even worse than these baskets and indices because the latter take into account real spending patterns and what is bought more is weighed more heavily in the basket, but, the GDP/capita gives no indication of the income distribution. You could had 70% of the wealth just staying with the top 10%.

^^ EXACTLY! Thats why I prefer PPP to just Nominal Per Capita Income.

Sialkot airport to help double export to $2b

SIALKOT: The dream of Sialkot business community of having an international airport has now become a reality with the commencement of the cargo and domestic passenger flights across the country from Sialkot International airport,.

Chairman Sialkot International Airport Limited (SIAL) Ghulam Mustafa Ch stated this while talking to the reporters here Sunday.

Senior vice chairman SIAL Dr Sarfraz Bashir and general manager Ch Muhammad Nawaz were also present on this occasion.

SIAL's Chairman Ghulam Mustafa Ch said the project of Sialkot International Airport was reflection of trendy Sialkot business community's great struggle, commitment, marvellous dedication, enthusiasm and endless sincerity, which has written a success story commitment and dedication and a saga of self-help, advising others to replicate it.

He said it would also help in doubling the export from Sialkot to $2billion, annually from existing exports $Ibillion, thus catering to the need of the Pakistan's first ever Golden Export Triangle comprising Sialkot, Gujrat and Gujranwala districts.

He said that the Sialkot airport would be the busiest airport of the country in the future, he said, adding it would play an instrumental role during bad weather especially in foggy season and for ensuring landing of diverted flights. The runway of the airport is excellent having the facilities of international standards.

He told the newsmen that the mega project of Sialkot International Airport costing over Rs 2 billion has a great significance because it has been solely financed by the private sector of Sialkot and so far the private sector has not built a project of this magnitude and size in the country even in South Asia.

The potential traffic forecast for Sialkot international airport has been scaled down at the time of opening to 530,339 passengers a year, while the estimated cargo tonnage at the time of opening is expected to be 28,515 tons. This means that by the end of year 2012 about 53,000 tons of cargo would be lifted from the Sialkot International Airport.

Ghulam Mustafa Ch said that due to the provision of passenger facilities at Sialkot International Airport, it was estimated that the general public would benefit to the tune of over Rs 2 billion in terms of time and money savings. Similarly, cargo handling at the airport would save over Rs 1 billion for the businesses with total saving of at least Rs 3 billion annually would be a perpetual benefit.

Half a million passengers ain't bad considering how much our other airports do.

Sialkot airport to help double export to $2b

SIALKOT: SIAL's Chairman Ghulam Mustafa Ch said the project of Sialkot International Airport was reflection of trendy Sialkot business community's great struggle, commitment, marvellous dedication, enthusiasm and endless sincerity, which has written a success story commitment and dedication and a saga of self-help, advising others to replicate it.

I admire them! :bow:

He said it would also help in doubling the export from Sialkot to $2billion, annually from existing exports $Ibillion, thus catering to the need of the Pakistan's first ever Golden Export Triangle comprising Sialkot, Gujrat and Gujranwala districts.

See! I named the thread right! :cheers:

He told the newsmen that the mega project of Sialkot International Airport costing over Rs 2 billion has a great significance because it has been solely financed by the private sector of Sialkot and so far the private sector has not built a project of this magnitude and size in the country even in South Asia.

Cool! :happy:

Half a million passengers ain't bad considering how much our other airports do.

And Sialkot doesn't even have that many people. About 600,000, I think. But seen as this airport is for the whole of the Golden Export Triangle, their total population crosses 10 million. 4.3 million in Gujranwala District, 3.5 million in Sialkot district and round about 3 million in Gujrat district. So I guess for an area of more than 10 million people. The starting figure of half a million is OK!

http://epaper.dawn.com/Web/Article/2008/06/16/113/16_06_2008_113_006.jpg

QUETTA: Balochistan government has worked out a plan to set up two more Industrial Estates one each in Loralai and Bostan aimed at attracting investors to construct factories in the areas, besides providing employment to youths, official sources told APP here on Sunday.
Industrial Estate Loralai will be established on 50 acre of land while Industrial Estate Bostan on 200 acre of land. The government will also set up Industrial Estates in Khuzdar, Turbat and Pasni aimed at providing job opportunities to local people.
Six industrial units have been established in Nasirabad district and investors have shown their interest to invest and construct factories, the sources said, adding that as many as 34 industrial units are functioning in the provincial capital and 45 more industrial units will also be set up in the city.
Referring to the industrial units in Gwadar, the sources said that there will be 2,000 industrial units in Gwadar Industrial Estate which will provide job opportunities to 30,000 people.—

LAHORE, June 16: Punjab’s coalition government announced on Monday its first revenue budget of Rs389.896 billion for 2008-09 and set aside Rs17 billion for pro-poor subsidies.

The budget carries a revenue surplus of Rs 133 billion and the expenditure is estimated at Rs257 billion.

“The subsidy package — meant for cash handouts for the marginalised, and food price, healthcare, public transport and other subsidies -- is part of the expenditure estimates,” finance minister Tanvir Kaira said in his maiden budget speech in the Punjab Assembly.

He also tabled a finance bill proposing to tax all forms of transfer of immovable property, whether through sale, exchange, gift or mortgage, and transfer of right or interest relating to an immovable property by a development authority, housing authority, statutory body, cooperative housing society, company or a developer/builder.

The bill also proposed imposition of a one-time levy on imported luxury cars with engine capacity of 2000cc and above to boost revenues.

The PML-Q boycotted the budget speech in protest against the delay in issuance of an order by the speaker notifying its leader, Chaudhry Zaheeruddin Khan, as leader of the opposition in the assembly.

The subsidy package included Rs13 billion for cash handouts, and food price and healthcare subsidy to the poor. The finance minister, however, did not spell out the size of cash handouts to be disbursed among the poor.

The rest of the funds have been set aside for subsidising public transport and agricultural tube wells and writing off housing and agricultural loans of poor widows.

The minister announced introduction of a free, air-conditioned bus service in seven major cities of the province for facilitating needy students. An amount of Rs1 billion will be provided to public transport in six cities with the help of the private sector.

He said Rs540 million had been set aside for setting up dialysis centres in the province.

In order to overcome the energy shortage, the Punjab government will set up projects to generate 350MW of electricity.

Mr Kaira said that price control boards would be constituted to protect the poor from rising prices of foodstuffs and other commodities and curb black-marketing and profiteering.

The government will launch a low-cost housing scheme for the poor with a sum of Rs1 billion and allow a subsidy of Rs100,000 per unit for the purchase of tractors to farmers with less than 12.5 acres of land under the Green Tractor Scheme, to be re-launched with a sum of Rs1 billion.

Landless, educated farmers will be given 60,000 acres of state land on lease for increasing production of vegetables and bringing down their prices.

The finance minister announced an Annual Development Programme of Rs160 billion, which is 6.6 per cent higher than the budgetary estimates of Rs150 billion for the outgoing year.

The share of district and TMA in the ADP, however, remained unchanged at Rs12 billion, although they, according to the revised estimates, had received Rs14 billion this year.

The development programme, Mr Kaira added, would be financed from the revenue surplus of close to Rs133 billion, capital account surplus of Rs13.593 billion, net public account surplus of Rs1.22 billion and foreign assistance (loans) of Rs12.237 billion.

SELF-RELIANCE: He said the government had been trying to reduce its dependence on foreign loans for financing development plans. “We are relying more on our own resources for funding development projects and have successfully managed to reduce the size of foreign assistance by Rs23 billion for the next year.”

The budget outlay for the next financial year is almost nine per cent higher than the outgoing year’s original estimates of Rs356 billion and 19 per cent higher than the revised estimates of Rs315.602 billion.

Punjab is projected to receive Rs285 billion in federal transfers, which is around 25 per cent more than budgetary estimates and almost 30 per cent higher than the revised estimates for the outgoing year. The hike in federal transfers to the provinces is projected on the basis of an increase in the tax revenue target of the federal government as well as in the provincial share in the divisible pool under the National Finance Commission (NFC) award.

The provincial own tax revenue income has been estimated at Rs40.362 billion, up by eight per cent from budgetary estimates of Rs37.315 billion and 31 per cent from the revised estimates of Rs30.627 billion. The provincial own non-tax revenue is estimated at Rs64.528 billion, down by about 30 per cent from the budgetary estimates and above one per cent from the revised estimates for the current year.

The expenditure for the next fiscal is five per cent higher than the original estimates of Rs243.487 billion and about 10 per cent higher than revised estimates of Rs232.187 billion for the ongoing year. “If the allocation for subsidies is put aside, the size of the revenue expenditure shrinks by Rs4 billion as compared to the original estimates for this year. We are providing money for pro-poor subsidies by reducing our current expenditure,” Mr Kaira added.

He said the Punjab government had decided to enforce fiscal discipline and improve governance by plugging leakages in the system. “The government will cut expenditures on official functions and has banned purchase of new vehicles, furniture, air-conditioners and other luxury items for government departments. A re-organisation committee has been set up to recommend steps for cutting unnecessary government expenditure.”

The minister’s speech was full of rhetoric and loaded with promises to establish social and economic justice in the province. “We have inherited several crises -- food crisis, judicial crisis, water and power crunch, etc, that have mostly affected the poor. But we are trying to handle them,” he said.

Mr Kaira said that in line with the chief minister’s policy statement, the Punjab government had decided to give the subordinate judiciary an allowance three times their basic pay scales. “We hope that it will improve their working and also expect the high court to purge the subordinate judiciary of all corrupt elements. Also, we expect that in future judges will be recruited in a clean and transparent way through the provincial Public Service Commission.”

He accused former LHC chief justice Iftikhar Hussain Chaudhry of making recruitments in violation of rules and merit. Mr Kaira promised to provide quality and inexpensive education and healthcare to the poor people and support the agriculture sector to boost output and said the government had enhanced allocations for social, industrial and agricultural sectors.

.Karachi

Sindh Chief Minister Syed Qaim Ali Shah presented on Monday the provincial budget for 2008-09. Shah described the budget as ‘pro-people’ and ‘pro-poor.’ The budget was based on the “five Es” of the late Benazir Bhutto’s guideline in the party manifesto (employment, education, energy, environment and equality) and the cabinet as well as the parliamentary party of the Pakistan People’s Party (PPP) had approved the budget before it was presented in the Sindh Assembly.

For Karachi, the CM announced a Rs2billion package for various priority schemes in the provincial capital, which includes the ongoing and new schemes in water, sewerage, and transport.

Rs200 million would be given to the Lyari Expressway Resettlement Project. He said that urgent measures were being taken to stop environment degradation by undertaking quick investments on the Greater Karachi Sewerage Plan (S-111) with the allocation of Rs1 billion.

Rs100million will be provided for water supply to Baba Bhit, Shamspir and Salehabad in Manora, Karachi. The Education City Project of Karachi, said Shah, is being scrutinised and it was decided to set up the ‘Education City Authority’ for uplifting the education standard.

According to the budget document, Karachi’s city district goverment would be provided Rs10.554billion for the next financial year, with Rs5.188billion to 18 towns of the city, from the provincial budget.

The City District Government Karachi (CDGK) budget provided by the previous provincial government was Rs9.948billion and the revised estimate budget was Rs10.859billion.Overall, Shah announced that the education budget would be increased from Rs17billion to Rs19billion.

The chief minister announced that the Chandka Medical College would be upgraded to the Benazir Bhutto Shaheed Medical University. The overall education budget has been enhanced by 16 percent. This includes various foreign-funded projects. Free textbooks would be provided to five million children, Rs609million would be provided through scholarship to girls from class five to 10th, Rs2.7billion would be provided for the rehabilitation of schools and Rs500million for supporting low-cost private schools.

Two engineering colleges, one Art and Design College and an institution of business administration would be set up in different cities. Shah said that Rs240million will be provided for the improvement of college education.

A new scheme called “Health Insurance for Poor” would be initiated and under this programme 100,000 poor people would be provided health insurance in the first phase while the Rural Health Center (RHCs) and Basic Health Units (BHUs) would be expended and female medical officers would be given priority in this regard. Moreover, Rs5billion allocated for the treatment of hepatitis would be in addition to the federal government programmes.

This was the first time that a chief minister presented the budget in the house as the portfolio of finance was still vacant; the PPP has promised to give the portfolio to one of the ministers of the Muttahida Qaumi Movement (MQM).

Though the MQM’s Syed Sardar Ahmed, who is supposed to be appointed as minister for finance after taking oath as minister on Monday morning, his portfolio as finance minister was not announced on the same day.

The chief minister thanked the coalition partners – the MQM and the Awami National Party (ANP) - and PPP co-Chairman Asif Zardari for their guidance in the preparation of the provincial budget and the backing of the federal government to provide additional funds through the federal budget.

PESHAWAR: The ANP-PPP coalition government in the NWFP presented Rs170.904 billion tax-free, surplus budget on Monday with allocation of Rs 41.545 billion for the Annual Development Programme.

Finance Minister Mohammad Humayun Khan, the first-time MPA from Malakand Agency and son of late PPP leader Mohammad Hanif Khan, presented the budget proposals in the NWFP Assembly. He spoke for more than an hour in Urdu and faced no interruption or resistance as the ruling coalition has a comfortable majority in the assembly and the opposition is weak and divided.

The minister announced that the provincial government as per the federal government decision would give 20 per cent raise in salaries to the public sector employees. It will cost the provincial exchequer about Rs 40 billion. A 20 per cent raise for pensioners announced by the federal government would burden the province with an amount of Rs 5.777 billion.

Humayun Khan, who was given the finance portfolio recently after serving for a while as the irrigation minister, said special focus was given in the budget to enhance allocations for the maintenance of law and order, overcome wheat-flour crises and upgrade education and health sectors.

He said Rs 6.559 billion, showing an increase of 27 per cent over the last budget, had been allocated to improve the efficiency of law-enforcement agencies and arrest the deteriorating law and order situation in the province.

To cope with the wheat-flour crisis, he said Rs 2 billion was set aside for meeting subsidy on this count. He added that Rs 21.720 billion, showing an increase of 10.20 per cent over the allocation in the previous budget, was earmarked for education. The allocation for health was Rs6.426 billion, which was 10 per cent more compared to the last budget's revised estimates.

Agriculture got Rs 500 million, which was 20 per cent in excess of the revised budget estimates of the previous year. Rs 825 million was allocated for repair and maintenance of roads while Rs1.350 billion earmarked for the government investment. According to the minister, the current revenue for the next financial year was projected at Rs 100.089 billion. Of the total revenue receipts, he said the provincial government would receive Rs 59.684 billion from the federal divisible pool, Rs 7.332 billion on account of 2.5 per cent GST, Rs 7.385 billion as province's own revenue and Rs 6 billion as its share from net hydel profits. The province would also get Rs14 billion in the shape of grant from the federal government.

An additional resource for the cash-strapped province is the rising income from royalty on deposits of oil and gas discovered in the NWFP. Humayun Khan projected this income to be around Rs4.429 billion. The province would also receive an income of Rs767 million on general sales tax on services.

Apart from current revenue receipts, the province would receive from the federal government Rs400 million on account of general capital receipts, Rs13.179 billion as developmental receipts and Rs57.237 billion as general capital receipts under the head of food. This would bring the total receipts to Rs170.904 billion, which is the size of the next fiscal budget.

The target for the current revenue expenditures has been put at Rs67.300 billion. The current capital stands at Rs4.477 billion, the developmental costs at 41.545 billion and the capital expenditure dedicated to food subsidies at Rs57.237 billion. Together, the total expenditure amounts to Rs170.559 billion. The budgetary proposals thus show a surplus of Rs345 million.

Explaining the next Annual Development Programme (ADP), the minister said its value of Rs41.545 billion was 5.37 per cent more than Rs39.462 billion ADP of the previous year. The share of provincial government in the ADP was Rs27.148 billion, which is 23.7 per cent more than Rs21.945 billion earmarked in the last budget.

The ADP has 901 schemes, including 604 ongoing and 297 new ones. An amount of Rs8.094 billion for 61 schemes has been set aside for special projects. The minister said Rs468 million will go to Population Welfare Programme, which is being implemented under the patronage of the federal government, while Rs1.218 billion have been allocated to the District Development Programme.

The minister also gave a break-up of 43.05 per cent allocations for development of the resource-starved social sector. It included 14.51 per cent for health, 20.29 per cent for education, 4.56 per cent for Tameer-e-Sarhad Programme under which MPAs are allowed to suggest projects to be executed in their constituencies, and 3.68 per cent for sanitation and provision of water.

The allocations for other social development sectors include 16.48 per cent for roads, 2.95 per cent for construction and housing, 4.70 per cent for irrigation, 2.63 per cent for agriculture, 1.76 per cent for forests, 4.20 per cent for industry and 19.60 per cent for regional development. The minister later highlighted the development projects to be funded by the federal government. The 61 projects in 21 sectors under this head would cost Rs8.094 billion. Out of this amount, Rs1.979 billion have been allocated for 16 schemes in the health sector, Rs1.885 billion for seven schemes in agriculture, Rs2.324 billion for water and power projects, Rs300.558 million for two drinking water supply schemes and Rs384.850 million reserved for six schemes concerning education.

QUETTA: Balochistan government has worked out a plan to set up two more Industrial Estates one each in Loralai and Bostan aimed at attracting investors to construct factories in the areas, besides providing employment to youths, official sources told APP here on Sunday.
Industrial Estate Loralai will be established on 50 acre of land while Industrial Estate Bostan on 200 acre of land. The government will also set up Industrial Estates in Khuzdar, Turbat and Pasni aimed at providing job opportunities to local people.
Six industrial units have been established in Nasirabad district and investors have shown their interest to invest and construct factories, the sources said, adding that as many as 34 industrial units are functioning in the provincial capital and 45 more industrial units will also be set up in the city.
Referring to the industrial units in Gwadar, the sources said that there will be 2,000 industrial units in Gwadar Industrial Estate which will provide job opportunities to 30,000 people.—

WOW!!! :eek: How does this compare with other cities of Pakistan???

traPPed :

1. As per Pakistan Economic Survey 2007-2008 Pakistani Population 160.9 Million and Per Capita Income USD 1085/-

Thus Pakistani GNP is USD 1085 x 160.9 Million = USD 174.5765 Billion

2. As per following Link Pakistan’s GDP is USD 170.8 Billion

Total size of Pakistan’s economy went up to $170.8 billion in the outgoing financial year 2007-08 against $143.9 billion in the previous fiscal 2006-07, registering $26.9 billion nominal growth (http://thenews.jang.com.pk/top_story_detail.asp?Id=14840)

Please confirm that Pakistan’s Gross National Product is more than the Gross Domestic Product as I thought broadly GDP + Exports - Imports + Other Earnings from Abroad - Other Payments to Foreign Countries = GNP.

Many thanks in Advance

Cheers:cheers:

^^ Man, dunno! It should be!

traPPed :

1. As per Pakistan Economic Survey 2007-2008 Pakistani Population 160.9 Million and Per Capita Income USD 1085/-

Thus Pakistani GNP is USD 1085 x 160.9 Million = USD 174.5765 Billion

2. As per following Link Pakistan’s GDP is USD 170.8 Billion

Total size of Pakistan’s economy went up to $170.8 billion in the outgoing financial year 2007-08 against $143.9 billion in the previous fiscal 2006-07, registering $26.9 billion nominal growth (http://thenews.jang.com.pk/top_story_detail.asp?Id=14840)

Please confirm that Pakistan’s Gross National Product is more than the Gross Domestic Product as I thought broadly GDP + Exports - Imports + Other Earnings from Abroad - Other Payments to Foreign Countries = GNP.

Many thanks in Advance

Cheers:cheers:
I don't think it would be coz of huge foreign investments in Pakistan.

I don't think it would be coz of huge foreign investments in Pakistan.

SiamuRathka :

You are right - the USD 8 to 10 Billion in Investments along with the USD 6 to 8 Billion in Workers' Remitances would contribute to it.

Cheers:cheers:

^^ Saimu's always right! ;)

http://i262.photobucket.com/albums/ii109/traPPed_2008/GDPIncome1960-2005.jpg?t=1213939327

1970-2005

http://i262.photobucket.com/albums/ii109/traPPed_2008/EmploymentUnemployment1970-2005.jpg?

MUZAFFARABAD: The Azad Jammu and Kashmir tax-free budget for 2008-09 with the total outlay of Rs. 29.97 billion has been presented in AJK Legislative Assembly on Wednesday. The budget session of AJK Legislative Assembly was presided over by Deputy Speaker Sardar Tahir Farooq Ahmed. Finance Minister AJK Legislative Assembly while presenting the budget announced that Rs. 9.55 billion has been allocated for development expenditures, which is 20 percent high as compared to Budget for 2007-08. The share of amount from Royalty Mangla Dam comprised on Rs. 779 million, Rs. 5.10 billion from the Federal taxes and Rs. 7.50 billion from revenue and state resources.The Annual Development Programme for next year constituted on 92 percent local resources and 8 percent on the foreign aid. The estimate of current expenditures stands at Rs. 20.41 billion while the total revenue estimates are over Rs. 15.81 billion. The deficit of Rs. 4.60 billion in the budget would be overcome with the assistance of Pakistan’s government. The AJK Finance Minister has informed the AJK Legislative Assembly that Rs. 15 billion has been earmarked for development and Reconstruction Programme, adding that under the programme, the schemes of education, health and supply of water would be completed. The minister informed that the allocation of amount of Rs. 3.870 billion is being under consideration for telecommunication, adding that 436-kilometer roads would be completed in the next fiscal year.
Raja Nisar Ahmed Khan said that Rs. 1.35 billion has been allocated for Local Government and Rural Development and an aid of Rs. 200 million by the International Bank has also been included in the amount. Under “Clean Drinking Water for All”, the Pakistan’s government has provided 223 filtration plants to Azad Kashmir and clean drinking water would be provided to AJK citizens, he added. The AJK minister underlined that Rs. 1.21 billion has been set aside for the electricity which is 8 percent high as compare to the previous fiscal year. Electricity connections have been provided to over 445000 consumers in the fiscal year of 2007-08 and 100 percent population would get the electricity facility, he added.
He underscored that the incumbent AJK government with the help of Pakistan’s government and its resources has started new projects with the total cost of Rs. 2 billion and after the completions of these projects, not only the production of the electricity would be increased but proved the job opportunities to local people, he added.
The minister informed that the Pakistan’s government has started the work on 969 megawatt Neelum-Jhelum Hydro Power Project and the project, costing Rs. 84 billion would helpful to meet the electricity need of Pakistan as well as Azad Kashmir. Commenting on the education sector, Raja Nisar said that the government is paying special attention to the sector and Rs. 640 million would be spent, adding that the building of 107 educational institutions would be completed. Rs. 400 million would be spent on the health sector in the next fiscal year, which is 18 percent higher as the current fiscal year, he added. After the announcement of Pakistan’s government regarding recruitment of 100000 lady health workers, the AJK would get its share of vacancies of 2500 lady health workers which would not only provided quality health facilities but also the job opportunities to women segment of AJK, he said. An amount of Rs. 145 million has been earmarked for Industries, Rs. 30 million for Social Welfare, Rs. 100 million allocated for tourism, Rs. 140 million for Sports.

http://www.regionaltimes.com/19jun2008/national/tax.php

anyone can explains to me what is status of AJK in Pakistan.An independent state or province or what?

Reserves are down to $10 billion now.

:applause: Jamhooriyat!

Reserves are down to $10 billion now.

:applause: Jamhooriyat!

FahadKhan :

Pakistan’s Foreign Exchange Reserves now stand at USD 10.9093 having fallen by USD 44.2 Billion in one Week.

Pakistan as also lost about USD 4 Billion in the last Four to Five Months.

Of Course the Indians will always claim superiority, of being seven times, over the Pakistanis.

As such, Yes indeed we Indians can make a far greater loss of Foreign Exchange than Pakistan and please note that India has LOST NEARLY USD FIVE BILLION OF ITS FOREIGN EXCHANGE RESERVES IN ONE WEEK (http://rbi.org.in/scripts/WSSView.aspx?Id=12464)

There you are - we are capable of make a humongous mess as compared to you by losing 112.5 Times Foreign Exchange as you - ALL IN ONE WEEK!

:applause:Democracy Yindian Yishtyle:applause:

Cheers:cheers:

^^ You mean Pakistan has lost 44.2 million in one week right? :eek:

Bad times due to the soaring oil prices.

FahadKhan :

As such, Yes indeed we Indians can make a far greater loss of Foreign Exchange than Pakistan and please note that India has LOST NEARLY USD FIVE BILLION OF ITS FOREIGN EXCHANGE RESERVES IN ONE WEEK (http://rbi.org.in/scripts/WSSView.aspx?Id=12464)

There you are - we are capable of make a humongous mess as compared to you by losing 112.5 Times Foreign Exchange as you - ALL IN ONE WEEK!

:applause:Democracy Yindian Yishtyle:applause:

Cheers:cheers:

Difficult times with soaring oil prices and inflation. Anyway, as far as the loss of forex is concerned, different nations and different economic dynamics... $5 billion loss from a nation which has $310 billion as forex reserves should not be a major cause of worry. Hope this phase goes through and economies of both nations get back on track soon.. :okay:

Lets not go off-topic here.

Pakistan economic progress.

its relevent

its relevent

He's talking about the post that he deleted! Good work KB!

http://epaper.dawn.com/Web/Article/2008/06/22/009/22_06_2008_009_014.jpg

He's talking about the post that he deleted! Good work KB!

my bad

http://www.app.com.pk/photo/photo_lib/24-06-2008/6607b083b13c8c203830bfa64745df85.jpg

http://www.app.com.pk/photo/photo_lib/24-06-2008/66b35044c49b42387071be083ee2b8ee.jpg

http://www.app.com.pk/photo/photo_lib/24-06-2008/5ad8f142e58ac806d2db15484cf57df8.jpg

Soon Pakistan's economy will get back to old days.

^^ I don't think so! Pakistan has never prospered as much as it has under Mushy's rule! For the 1st time we have seen the emergence of a healthy Upper and Middle Class! Plus our educational and social indicators have never risen so rapidly either! So, its going to take a lot more to derail the economy, than it took after the 2 previous economics booms of the 60s and the 80s.

Anyways....

It is estimated that in 2002, about 6.8 million of the 50 million people living in urban Pakistan belonged to the upper and upper–middle class, and represented a grocery market worth $1.7 billion. This segment, projected to grow to 17 million people by the year 2010, is expected to be the first to switch to modern retail stores.

http://ajc.sagepub.com/cgi/content/abstract/2/2/137

Soon Pakistan's economy will get back to old days.

Amen :)

Fiscal deficit may go up to 7.5pc (http://www.dawn.com/2008/06/29/ebr9.htm)

By Nasir Jamal

LAHORE, June 28: The federal budget for the fiscal 2008-09 may have understated expenditure on account of interest payments, federal and provincial salary bill, subsidies and development expenditure by Rs410 billion and overstated the growth in the expected tax revenue target by 7.5 per cent to 25 per cent over the outgoing year’s Rs1 trillion.

A study – A risky Federal Budget 2008-09 – by a private university estimates that the level of current and development expenditure could exceed the budget estimates for 2008-09 by almost Rs360 billion (if the government actually manages to curtail its non-salary bill by Rs50 billion and adjust part of the understated expenditure accordingly).

“This implies that the fiscal deficit in 2008-09 could rise substantially beyond the projected level of 4.7 per cent of GDP to almost 7.5 per cent. In this scenario, there will be no fiscal adjustment and the fiscal deficit will remain very high, says the paper authored by Dr Hafeez Pasha and Dr Aisha Ghaus Pasha.

The paper says the sharp reduction in the fiscal deficit to 4.7 per cent of GDP is predicated on a reduction in current expenditure of four per cent and a big jump in net revenue receipts of 18 per cent. “Consequently, even with the large deficit reduction, there appears to be scope for increasing the overall PSDP of the federal and provincial governments combined by almost 20pc.

It says the finance minister has indicated that the government proposes to ban the purchase of motorcars, air-conditioners and other office equipment. “Also, freezing of non-development, non-salary expenditure will take place at the 2007-08 level.It further states that the normal growth in tax revenues would be about 17.5 per cent in line with the expected growth of nominal GDP next year due to the additional revenue likely to be generated from the taxation measures announced by the government.

Interest payments, the paper says, are expected to increase from Rs502 billion to Rs523 billion, showing a modest growth of only four per cent. “As in the last two years, there is the likelihood of a significant understatement of this expenditure, especially since domestic debt is likely to increase by over 20 per cent in view of the large fiscal deficit.

The government’s announcement to increase pay and allowances and pensions of its serving and retired employees by 20 per cent and minimum pension from Rs300 to Rs2000, double the conveyance allowance for employees from BS-1 to BS-19, raise medical allowance for employees in BS-1 to BS-16 and enhance minimum wages from Rs4600 to Rs6000 per month, claims the paper, has not been incorporated in the current expenditure estimates for 2008-09. “Based on the figures contained in the Demand for Grants and Appropriations we estimate that the pension and salary hike will add about Rs15 billion to defence expenditure and Rs20 billion on the civilian side at the federal level.

The additional cost to the four provincial governments could approach Rs30 billion, thereby reducing the provincial surplus accordingly.”

On development programme, it says the combined PSDP of the four provincial governments has been projected at Rs150 billion. But the combined PSDP of the four provinces could exceed Rs290 billion, which is Rs140 billion more than the size mentioned in the budget documents.

Dear colleagues,
Please help me update this information, for our Pro-Musharraf website. Also, if there's anything you guys would like to contribute in favor of Musharraf or his performance, pls send me email: opinion786@yahoo.com

Our Leader - Musharraf http://presidentmusharraf.wordpress.com/ :banana:

You guys leave good messages in favor of Musharraf on the website :lol:

Also, pls tell me if there are additional one-liners I should increase in below recordings to show economic performance???

Basic comparison of 1999 and 2007

Pak Economy in 1999 was: $ 75 billion
Pak Economy in 2007 is: $ 160 billion
Pak Economy in 2008 is: $

GDP Purchasing Power Parity (PPP) in 1999: $ 270 billion
GDP Purchasing Power Parity (PPP) in 2007: $ 475.5 billion
GDP Purchasing Power Parity (PPP) in 2008: $ 504.3 billion

GDP per Capita Income in 1999: $ 450
GDP per Capita Income in 2007: $ 925
GDP per Capita Income in 2008: $1085

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 Foreign reserves in 2008: $ 10 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: $ 75 billion at 14,000 points
KHI stock exchange 2008: $ ----------- at 13,000 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
Pak Development programs 2008: Rs. 549.7 billion

:grouphug: Thanks!

^^ YAY! Opinion you're back! :cheer: :happy: :banana:

Here's something that I made yesterday, when I came across the data on year by year GDP growth rate of Pakistan, from 1951 onwards.

I've highlighted the times when we crossed the 8%, 9% & 10% barriers. I've also highlighted the only time that we've had negative growth aswell.

We've only grown more than 10% once! :ohno:

http://i262.photobucket.com/albums/ii109/traPPed_2008/GDPRateofGrowth1951-2007.jpg?t=1214778126

^^^^Thanks alot trapped! For giving me such a generous welcome! :lol:

Excellent info that you collected!:banana: You are wonderful in developing charts, I see ! :)

Is it possible that we load it on 'wordpress' or do you have a website which I can refer? Pls advise?

Please do visit Our Leader - Musharraf
http://presidentmusharraf.wordpress.com/

But we're still in developing phase... we need appreciation... to appreciate economy under Musharraf!

Heh trapped, I just saw if I click on your #184 it gave me exclusive your post and web address: :banana::banana:
http://www.skyscrapercity.com/showpost.php?p=22118843&postcount=184

I can give this link on the page? Pls advise?

Goldman Sachs

Global Economics Paper No: 153

The N-11: More Than an Acronym

http://www.chicagogsb.edu/alumni/clubs/pakistan/docs/next11dream-march%20'07-goldmansachs.pdf

^^ Yeah man! Load it onto your website! Give the link, whatever! Afterall its to show the progress made by our homeland! :) :okay:

Thanks Trapped! I'll browse through more of previous pages on this thread and collect the links and then load them unto the web. :-) Insha-ALLAH I'll be done in a week. I'll let you guys know. If there's anything you would like to contribute pls do so! Regards!

^^ Also check out the thread "Economic Progress (Part II)". Especially the latter part of it.

Goldman Sachs

BRICS AND BEYOND


Another Research by Goldman Sachs, though it focus on the BRIC, there is a section dedicated on the emerging economies namely the N-11

http://www.greenlightadvisor.com/documents/BRIC-Full.pdf

^^ Is this a new one?

I have read an old one that came out a while ago.

Trappy, howcome you didnt put down the years on the x-axis?

^^ Yep, The BRICS and Beyond was published is 2007 the original N-11 was published in 2005.

BMA Pakistan Outlook for 2008

By BMA Capital

http://www.bmacapital.com/BMA_OutLook2008.pdf

^^ Is this a new one?

I have read an old one that came out a while ago.

Trappy, howcome you didnt put down the years on the x-axis?

I tried, but couldn't do it. Excel has some weird way of making tables now. :no:

^^ Yep, The BRICS and Beyond was published is 2007 the original N-11 was published in 2005.

Thanks for the links. I did come across these before and I wasn't happy with the stuff on Pakistan. :no: Much of their figures were also outdated. And countries like Pakistan can do better than what they have said in the report.

^^ Yeah I noticed that too Goldman Sachs understated the GDP level of few countries, while were highly over optimistic on couple of counties, probably Vietnam.

Revenue collection crosses Rs1trn (http://www.dawn.com/2008/07/03/ebr2.htm)

By Mubarak Zeb Khan

ISLAMABAD, July 2: The Federal Board of Revenue (FBR) collected Rs1,002 billion during the fiscal year 2007-08 against the downward revised target of Rs990 billion, showing an increase of Rs12 billion.

Addressing a press conference FBR Chairman Abdulla Yousuf said that as additional Rs3 to 4 billion will be added to this amount in the next few days when the statistics were finalised for the year under review.

The original target for the fiscal year 2007-08 was projected at Rs1,025 billion but was revised downward due to strikes in the month of December last.

“It is first time in the history of Pakistan that the FBR has crossed the psychological barrier of one trillion,” chairman said and added the target of Rs1,250 billion for the year 2008-09 will be achieved easily.

Elaborating the strategy for achieving the target, Mr Yousuf said that the 5 per cent growth in the GDP and 12 per cent inflation would help the FBR to realise a revenue collection in the vicinity of Rs1,164 billion for the fiscal year 2007-08.

He said through new taxation and administrative measures FBR would generate an additional Rs86 billion. Of these Rs71 billion would be generated through new taxation and Rs15 billion from administrative measures.

Answering a question the chairman said that the administrative measures would include plugging of loopholes, controlling under-invoicing, widening of tax base. He added the amnesty schemes introduced in the budget last would help in increasing the narrow tax base.

Replying to a question the FBR chief said that more than Rs135 billion had been netted from the petroleum products during the first 11 months of the current fiscal year. Of these Rs112 billion as sales tax, Rs20 billion as customs duty and Rs3 billion as federal excise duty.

To a question he said the revenue generated from imports of defence related products would be around Rs10 billion. He ruled out the possibility of fudging in the revenue figures. The revenue figures are based on hard cash, he added.

The FBR chairman linked the decline in payment of rebate/refunds to the taxation reforms in the tax machinery.

To a question he said that the government declined to entertain one of the recommendations of the Senate Standing Committee on Finance seeking no change in the rate of general sales tax. However, most of the recommendations were accepted, he added.

To tackle with the issue of bara markets, he said the government was considering revision of Afghan Transit Trade Agreement with Afghanistan. He said a tracker system will be introduced for ATT goods transported through trucks or train to avoid its selling in the local market.

Highlighting the performance of various taxes during the financial year, he said that the FBR collected Rs385.3 billion under the direct taxes against Rs333.7 billion last year, showing a growth of 15.4 per cent.

The sales tax collection increased to Rs375.5 billion during the year 2007-08 against Rs309.4 billion realised during last year, showing a growth of 21.4 per cent.

The federal excise duty collection reached Rs90.8 billion during the year under review against Rs71.8 billion last year, showing a growth of 26 per cent.

And the collection of customs duties stood at Rs150.5 billion as against Rs132.3 billion of last year, showing a growth of 13.8 per cent.

The percentage share of direct taxes in total collection declined to 38.5 per cent during the year 2007-08 from over 39 per cent last year.

However, the GST share increased to 37.5 per cent from 36.1 per cent, FED 9.1 per cent from 8.5 per cent. This shows that the share of indirect taxes increased during the year 2007-08 as compared to the direct taxes.

Portfolio investment turns negative in FY08 (http://www.dawn.com/2008/07/03/ebr1.htm)By Shahid Iqbal

KARACHI, July 2: The fiscal year 2007-08 ending with net outflow from the portfolio investment left a big negative mark on the country’s vulnerable economic and political situation. It caused a total outflow of $4.6882 billion from the market.

The year-end final data released by the State Bank of Pakistan on Wednesday showed that the poor response of foreign portfolio investment added fuel to fire to the forex coffer of the country.

The June, the last month of the outgoing year, witnessed a net cumulative outflow of $146.6 million as the total inflows remained at $255 million while the outflows were at $402 million.

This negative situation prevailed throughout the fiscal year, which was contrary to the last fiscal year when the portfolio investment added about $1.9 billion to the total foreign private investment in the country.

The State Bank’s calculation reveals that during the year the total inflow reached $4.449 billion but the outflow exceeded it at $4.682 billion, thus the cumulative outflow was $233 million.

Analysts said the year just ended was the most instable period during the last five years and the entire year was full of incidents. They said each incident carried greater uncertainty damaging the image of the country abroad.

Unlike the fiscal 2006-07, the year ‘08 remained mostly under political uncertainty.

“The political uncertainty was the real cause of concern, which started with emergency, heightened with the murder of Benazir Bhutto and continued with the results of general elections,” said Abid Saleem, researcher at a brokerage house.He said despite formation of the new government, which presented its first budget, there was neither sign for change in the economic policies nor any indication of ending of war on the political front.

“While the economy is plagued with the rising inflation, the political situation is still not settled,” said the analyst adding that the next fiscal year would remain under the grip of same situation unless something happens to end this uncertainty.

Not only the portfolio but the foreign direct investment also declined substantially during the year as July-May figure showed that the FDI shrank by 14 per cent.

“The booming banking and telecommunication sectors protected the falling trend in foreign investment during the fiscal year just-ended,” said a senior banker. He said the banking sector had reached the saturation point due to the existing economic growth trend and would not provide much support in the coming days of the new fiscal year.

Analysts said the economic growth was the real key for attracting foreign as well as domestic investors. The uncontrolled hike in oil and gas prices with highly inflated commodity prices, it looks impossible for the country to achieve a reasonable 6 per cent economic growth, they said.

The recent action to support the share prices by imposing restriction that price of scrip can not slip more than one per cent but can move up to 10 per cent, also failed to attract foreign investment.

Most of the analysts, who are the real catalyst to bring foreign investors for portfolio investment, were of the view that no artificial step could attract the investors. They believe that the real economic growth was the only way to invite foreign investors.

Trade policy on 19th

ISLAMABAD: The government is all set to present trade policy for 2008-09 on July 19, officials said.

"Trade policy will focus on slashing imports to the minimum and enhancing exports to boost the national economy," a Commerce Ministry official told The Post.

He said Defence Minister Chaudhry Ahmed Mukhtar, who also has additional charge of commerce, would present trade policy. He said overseas Pakistanis might be allowed to import used cars that were seven-year-old under the trade policy. At present, overseas Pakistanis can import only three-year-old cars and other vehicles.

In case the government allows the import of up to seven-year-old and used cars under Transfer of Residence Scheme, Personal Baggage Scheme and Gift Scheme, overseas Pakistanis would be having a great opportunity to bring home cars that are in their use aboard. The federal government has already increased the customs and taxes by 10 percent on the import of old and used cars and other vehicles under Transfer of Residence (TR), Gift Scheme and Personal Baggage.

The government has also withdrawn tax and duty concessions available on the import of old and used vehicles in the federal budget 2008-09. The total tax to be paid on such cars includes customs duty, sales tax, withholding tax and sales tax.

The official said that a presentation on the trade policy for 2008-09 would be given to the prime minister before it was made public.

"The federal cabinet in its special meeting will approve the policy and then it will be unveiled," he added.

Trade policy had been framed after consultations with all stakeholders.

I came across a great site! So I'm going to post articles from there. Sorry if these are a bit outdated.

Pakistan: Going forth and away from our stereotypes

It isn't easy to be a citizen of Pakistan living nowadays anywhere in the world. Everywhere you are considered if not a terrorist then at least a sympathizer of Osama bin Laden. Not surprising that so many people born in Pakistan and living abroad have decided to return home together with their assets. At the same time their country of origin needs investments in order to be able to keep non-increasing the gap of power abilities between it and its regional nemesis India. The race for foreign investments in East and South Asia that have roots in the years after the WWI, may lead to changes in these regions that are hard to understand.

Many people born in Pakistan feel uncomfortable these days because of their country of origin. Despite the fact that there were many Pakistanis buried under the rubbles of the WTC in NYC, despite the fact that many real terrorists since were caught only because of the cooperation of Islamabad, the Western public opinion created this new stereotype, putting sign of equality between Pakistanis and terrorists. So it isn't surprising that many Pakistanis living abroad decided to return home or at least to prepare their ultimate return by buying cheaper real estates. The result was an unprecedented appreciation of the land for development in Lahore and Karachi since the end of 2001. In some places the happy first-come-first-served investors report 10-12-fold appreciation during the last 36 months.

Pakistan in general is among the least developed countries in the world, but that is only one side of the story. This country needs modernization, not exactly copying the Western models, but nonetheless attracting foreign investments in order to diversify the local economy that is still based on three main pillars like in 1947 when the country was born out of partition of the former British colonial territories. Textiles, leather and sport goods still account for 75% of the export and the taxes. The former feudal landlords still keep considerable political power by aligning themselves with the military regimes. But all this is doomed, Pakistan as we know it will cease to exist in 20-30 years from now.

The domino effect of modernization in Asia that started 50 years ago with the first mass injections into the Japanese textile industry by the Americans will continue its pace into Pakistan, not because the local elites favor modernization but because without it they won't be able to compete regionally with India, their longtime nemesis. Returning home Pakistanis will play special role in this process of modernization. Most of these "dollar people" have been no part of the traditional political and economic elites. They are bringing with them 9-5 working schedule, work-mall-home shopping habits, social and political rights, and the idea of constant social changes as something desirable. In fact they will claim chunks of the economic and political power and why not more than just chunks. This society 20-30 years from now will look very different from our today's stereotypes.

http://www.ired.com/news/mkt/pakistan.htm

Pakistan: Initial modernization fever

Pakistan is still ruled by military but the country is different from what foreigners have seen 5-6 years ago. Economy is gradually opening toward foreign investors. Former political parties are calling for restoration of democracy. The government itself is more and more frequently using modernization vocabulary trying to explain its decisions. It looks like the country, for decades remaining within the grip of traditionalist ideologies is finally caught by modernization fever. It can be seen less in new buildings and infrastructures, in this regards the country still remains backward. But people's mentality is changing; they see the world through different lenses. May we see modernization in Pakistan similar to that in China? I doubt that this will be the case; I'm inclined to think that more suitable models for Pakistan may be found in some Arab and other Muslim countries from the Middle East.

Economy

Pakistani economy is slowly opening to foreign investors. The dominant mood in the country is that foreign direct investments can be very helpful in bringing the country into modern era. That won't be exactly modern era in western understanding of 21st century technologies, but even if the country comes into 20th century that would be considered as big success. Government wants new foreign markets and it looks like the population also understands the positive correlation between more trade and more prosperity. Islamabad calls to the richest countries to open their markets to Pakistani textile; these calls should be answered and the answer should be "yes". For the western consumers it doesn't matter whether the clothes they buy are made in China or Pakistan. As China moves up the ladder to more sophisticated goods and services, countries like Pakistan are best positioned to take over the less sophisticated products.

Media


Perhaps the most striking new feature in Pakistan is the freedom of private electronic media, the ones that were allowed to thrive after 1999 in order to balance the Indian media influence and foreign satellite TV channels. The devastating earthquake of 2005 showed that these media could play very important role in public mobilization for providing help to the victims and their families. People saw other people dying and for many viewers these were the first footages of a kind broadcasted from their own country. They saw human tragedies, government incompetence, cruelty and compassion, help and neglect. For many this was the first real sense of national belonging outside the official propaganda and school textbooks. We can only speculate how this new dimension of national identity may change these people but there is no doubt that it will change them.

http://www.ired.com/news/mkt/pakistan-mod.htm

Mark Matthews (Merrill Lynch, Chief Asia Strategist) Views About Pakistan

6I8kiwXu18I

The guy knew exactly what he was talking about.

Trade deficit widens to $20.7 billion in fiscal year 2008 (http://www.brecorder.com/index.php?id=766589&currPageNo=1&query=&search=&term=&supDate=)
ZAHEER ABBASI
ISLAMABAD (July 10 2008): Pakistan annual trade deficit for 2007-08 closed at $20.745 billion, which is 52.92 percent more over $13.563 billion for 2006-07 because of food import bill and steep increase in prices of crude oil in the global market. Official figures released by the Federal Bureau of Statistic on Wednesday showed that the country imported goods worth $39.968 billion against $19.922 billion exports during 2007-08.

The deficit is $7.182 billion more as compared with the last year. Economists say this habit of running trade deficit throughout the year could be disastrous for the economy and the government has to evolve a strategy to mend its fence. Although some people question about $2.246 billion increase in exports in 2007-08, it made possible for the government to achieve $19.2 billion exports target for the year.

Further analysis of the data shows an increase of 5.51 percent in exports in June over last month that have increased to $2.053 billion in June from $$1.946 billion in May. The trade deficit was recorded $1.97 billion in June with $4.052 billion imports against $2.053 billion exports for the month.

Monthly comparison of trade data showed that there was about 57.42 percent increase in trade deficit in June 2008 over the same month last year. The deficit was increased from $1.252 billion in June 2007 to $1.971 billion in June 2008.

There was a huge increase in import bill because of high prices of oil and food import bill. The imports were as high as $39.968 billion at end of the year with over 30 percent increase from last year. The total imports in last year were $30.539 billion which have been increased to $39.968 billion, about $9.429 billion up over last year.

The growing trade deficit, experts says would not have only put pressure on foreign exchange reserves but would amassed more inflation because the country imports a number of food items to meet its domestic needs. Many fear that Pakistan was becoming increasingly an imports dependant country with the growing list even of food items, despite being an agricultural country.

Pakistan could tighten more to fight inflation (http://www.brecorder.com/index.php?id=766708&currPageNo=1&query=&search=&term=&supDate=)
KUALA LUMPUR (July 10 2008): Pakistan is ready to tighten monetary policy further to fight inflation, a senior finance official said on Wednesday, stressing the authorities' commitment to getting inflation down from a three-decade high above 19 percent.

"Some people argue that further monetary tightening may not be very useful, but the whole problem is that we are not willing to compromise on inflation," said Hina Rabbani Khar, special assistant to the prime minister on finance and economic affairs.

"So if that requires more tightening, yes," she told Reuters in an interview in Kuala Lumpur. Many analysts believe an interest rate rise is imminent, but she declined comment.

"All I am saying is that there are certain things that you are committed to. And more than cheap money and cheap credit, we are more committed to holding on to inflation." In May the SBP increased its discount rate to 12.0 percent from 10.5 percent to counter inflation and widening fiscal and current account deficits.

It then announced an increase in the cash reserve requirement (CRR) - the ratio of cash banks must keep in reserve with the central bank - to 9.0 percent from 8.0 percent of deposits up to one-year maturity.

For the 2007/08 fiscal year that ended on June 30, the government expects its budget deficit to be 7.0 percent of gross domestic product (GDP), while the current account deficit is likely to be between 7.3 percent and 7.8 percent of GDP. Reflecting this, the rupee is near an all-time low.

"The rupee's problem is a balance of payments problem more than anything else," Khar said. "We will try our very best to hold the slide," she said, mentioning a tightening of regulations on foreign exchange transactions announced by the State Bank of Pakistan on Tuesday.

The rupee firmed on Wednesday in response to the measures, which included a temporary suspension of forward booking of foreign exchange for imports. It rose 2 percent to 71.40/60 per dollar. The rupee's close on Tuesday of 72.85/90 to the dollar was its weakest ever. At that level it had fallen 6.6 percent since July 1, the start of Pakistan's fiscal year, and 18.3 percent since January 1, due to the deteriorating economic fundamentals.

Khar blamed the caretaker government that took charge temporarily before general elections in February for most of the trouble. "Within the caretaker set-up, within just three months, because of the huge oil price bill, the sliding down was immense," she said. "Whereas your current account deficit was looking OK, your budget deficit was within reach, everything just went haywire." But she was hopeful that things would improve. "I see this problem settling down within a year. This year would be a year of stabilisation for the Pakistani economy."

Trade deficit widens to $20.7 billion in fiscal year 2008 (http://www.brecorder.com/index.php?id=766589&currPageNo=1&query=&search=&term=&supDate=)
Damn oil and falling Rupee!

Damn oil

This is why I hate Arab shiekhs so much. With each dollar rise in the price of oil, my loathing for them goes up a notch.

We must find alternative energy sources ASAP so that our money stops funding their obscene sky scrapers while our population starves.

Trade deficit widens to $20.7 billion in fiscal year 2008 (http://www.brecorder.com/index.php?id=766589&currPageNo=1&query=&search=&term=&supDate=)
.
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Official figures released by the Federal Bureau of Statistic on Wednesday showed that the country imported goods worth $39.968 billion against $19.922 billion exports during 2007-08.
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Further analysis of the data shows an increase of 5.51 percent in exports in June over last month that have increased to $2.053 billion in June from $$1.946 billion in May. The trade deficit was recorded $1.97 billion in June with $4.052 billion imports against $2.053 billion exports for the month.


brightside :

With reference to the above please refer to the following link :

EXPORTS AND IMPORTS OF GOODS & SERVICES (http://www.sbp.org.pk/ecodata/ExportsImports-Goods.pdf)

According to the above link the Imports from July 2007 to May 2006 are USD 31.971 Billion

The Imports in June 2008 were USD 4.052 Billion.

Thus the Total of Imports from July 2007 to June 2008 is USD 36.023 Billion.

How does the Federal Bureau of Statistics declare the Total Imports for the Financial Year 2007-2008 as USD 39.968 Billion?

Can you please explain?

Thanks in advance.

Cheers:cheers:

This is why I hate Arab shiekhs so much. With each dollar rise in the price of oil, my loathing for them goes up a notch.

We must find alternative energy sources ASAP so that our money stops funding their obscene sky scrapers while our population starves.
I'm sorry, but that's a retarded point of view. But it's found on pretty much every internet forum, and I think most Americans think this way. Mind you, I don't love the Sheikhs or anything.

This is why I hate Arab shiekhs so much. With each dollar rise in the price of oil, my loathing for them goes up a notch.

We must find alternative energy sources ASAP so that our money stops funding their obscene sky scrapers while our population starves.

It has nothing to do with Arabs!!! The so-called war on terror in Iraq is the cause of the rise of oil prices. Everyone is feeling now the impact of the war.

Don't worry, in the future Canada (http://www.rense.com/general37/petrol.htm) will start pumping a lot more Oil. And with the price of Oil going up day by day, its becoming more viable for Cananda to do so.

Pakistan like the rest of the world depends too much on oil. I think it is vital for Pakistan economy to look into other resources for the long term. Because eventually oil will get more expensive.
Pakistan should have seen this coming but they didn't adapt their policies.

brightside :

With reference to the above please refer to the following link :

EXPORTS AND IMPORTS OF GOODS & SERVICES (http://www.sbp.org.pk/ecodata/ExportsImports-Goods.pdf)

According to the above link the Imports from July 2007 to May 2006 are USD 31.971 Billion

The Imports in June 2008 were USD 4.052 Billion.

Thus the Total of Imports from July 2007 to June 2008 is USD 36.023 Billion.

How does the Federal Bureau of Statistics declare the Total Imports for the Financial Year 2007-2008 as USD 39.968 Billion?

Can you please explain?

Thanks in advance.

Cheers:cheers:

I think Pakistan defers payment on oil sometimes. So the oil the imported previously which was to be paid for at a lower price might now be costing more, which might explain the discrepancy. That is the only reason I can think of for the difference in those figures.

I'm sorry, but that's a retarded point of view. But it's found on pretty much every internet forum, and I think most Americans think this way. Mind you, I don't love the Sheikhs or anything.

It has nothing to do with Arabs!!! The so-called war on terror in Iraq is the cause of the rise of oil prices. Everyone is feeling now the impact of the war.

I'm sure you guys are familiar with the concept of monopoly. These guys have a monopoly over a vital natural resource. The rest of the world cannot do anything to cause them to do anything about the rising costs of oil. The higher it goes, the more it benefits them.

I don't like my money going to their countries, thus, I hate them, because I have no choice but to buy their product.

You guys talk a lot of shit.

You guys are sounding like that guy who drives a Prius because he does not want the oil money going to Saudis.

You guys are sounding like that guy who drives a Prius because he does not want the oil money going to Saudis.
What's even more amusing is the fact that the biggest exporter of oil to the US isn't even a Middle Eastern country. Damn faggots don't even know that.

What's even more amusing is the fact that the biggest exporter of oil to the US isn't even a Middle Eastern country. Damn faggots don't even know that.

Biggest exporter of crude to the US is Canada and then Saudi Arabia. So he wasnt entirely wrong!

Uhh are you guys also talking about me?

Biggest exporter of crude to the US is Canada and then Saudi Arabia. So he wasnt entirely wrong!
I wasn't making fun of Fahad, but of those Prius drivers who keep talking as if all their money goes to the Middle East.

Foreign exchange reserves decline by $160 mln

KARACHI: The foreign exchange reserves of the country declined by 162.1 million dollars to 11.12 billion dollars at the end of the last week on July 5.

Out of the total foreign exchange, the SBP holds $8.3238 billion while $2.7986 billion are with commercial banks.

- Geo

:cheer:

Account freeze in a year!

Its like a teenage brat taking money out of his fathers wallet.

Pakistan like the rest of the world depends too much on oil. I think it is vital for Pakistan economy to look into other resources for the long term. Because eventually oil will get more expensive.
Pakistan should have seen this coming but they didn't adapt their policies.

Not just Pakistan, other countries are suffering from the same Oil crises too. There are only a few clever countries out there like France, which produces most of its electricity from Renewable resources.

I'm sure you guys are familiar with the concept of monopoly. These guys have a monopoly over a vital natural resource. The rest of the world cannot do anything to cause them to do anything about the rising costs of oil. The higher it goes, the more it benefits them.

I don't like my money going to their countries, thus, I hate them, because I have no choice but to buy their product.

I had a link and I've read about this alot, that Arab countries don't have as much grip on Oil as we are led to believe, heck you can even include the whole of OPEC on that list. Hope I come across it again, it was very eye opening.

Uhh are you guys also talking about me?

No, the world doesn't revolve around you sunshine. :nuts:

Trapped, is right above when he says the Arabs don't have much say over the prices. Oil Bourse is traded in London.

Second, Chinese consumption has gone up sixfold and the next 2 years they will be completing their major ambitious projects. Steel and Oil is being consumed alot in China.

In 1996, China was importing 165.9 million of barrels of Oil and till 2006 it started importing 1064.6 million barrels of Oil.

Keep track of China - within the next ten years they'll be the largest economy of the world !

Waste 5 minutes and praise the MAN for what you think is right - or what makes you think he's better than our routine politicians:
http://presidentmusharraf.wordpress.com/about/

Why Musharraf ??? Why should he be our Leader ???

Thanks & Regards!

You guys talk a lot of shit.

From today's DAWN

http://epaper.dawn.com/Web/Article/2008/07/13/001/13_07_2008_001_005.jpg

http://epaper.dawn.com/Web/Article/2008/07/13/003/13_07_2008_003_009.jpg

http://epaper.dawn.com/Web/Photographs/2008/07/13/003/13_07_2008_003_002_002.jpg

From today's DAWN

http://epaper.dawn.com/Web/Article/2008/07/13/001/13_07_2008_001_005.jpg

http://epaper.dawn.com/Web/Article/2008/07/13/003/13_07_2008_003_009.jpg
and?

I was right.

I have no idea what you're trying to say. Right about what? That Saudia gave us oil on deferred payments?

Its only for one year, and the Govt. is going to increase the prices even more (in the news), and most of this oil will go to waste in rallies and strikes in the coming months.

I have no idea what you're trying to say. Right about what? That Saudia gave us oil on deferred payments?

I don't know, you should have made your post clearer about what exactly did you think was "shit" about my reply to Naresh.

http://farm4.static.flickr.com/3208/2667256660_6c765794b6.jpg?v=0

Pakistan's imports doubled in 3 years :crazy:

http://epaper.dawn.com/Web/Article/2008/07/14/601/14_07_2008_601_005.jpg

You guys were saying the Arabs don't have control over oil price? Read the second paragraph.

http://epaper.dawn.com/Web/Article/2008/07/14/604/14_07_2008_604_002.jpg

Now read this article:
http://www.ajc.com/services/content/business/stories/2008/07/13/seventies.html?referrer=search_buy

I don't know, you should have made your post clearer about what exactly did you think was "shit" about my reply to Naresh.

http://farm4.static.flickr.com/3208/2667256660_6c765794b6.jpg?v=0

See now this is clearly confusing, the same picture of the Quaid (same exact pose!) on every note in Pakistan, this will create confusion regardless of the color.

They should have either change places for him, on the left etc on some of the notes.

The worst is the original 20Rs. note. When it's new, it looks exactly like the 5000Rs. note. When it's worn out, it looks exactly like the 10Rs. note. The newer 20Rs. note is much better.

The new Rs. 20 note is so freaking small that you wonder should you fold it and keep it or just keep it like that in your wallet, because it will certainly be jumping around in your wallet due to its size.

You guys were saying the Arabs don't have control over oil price? Read the second paragraph.

http://epaper.dawn.com/Web/Article/2008/07/14/604/14_07_2008_604_002.jpg

Now read this article:
http://www.ajc.com/services/content/business/stories/2008/07/13/seventies.html?referrer=search_buy

I for one didn't say that Gulf Arabs don't have control over the price of Oil. I just said that they are not as influential as we are led to believe.

See now this is clearly confusing, the same picture of the Quaid (same exact pose!) on every note in Pakistan, this will create confusion regardless of the color.

They should have either change places for him, on the left etc on some of the notes.

I don't see any problem with notes having "the same picture of the Quaid [& the] (same exact pose!)" as I've never had a problem with it in Pakistan. You could cleary tell which note is which, because a) they all have different colours/designs and b) it say on the notes, what the value is.

^^ Sir, its Pakistan, you don't have time to look at the note, if you take 10 seconds to look at the note, that note's gone :laugh:

I for one didn't say that Gulf Arabs don't have control over the price of Oil. I just said that they are not as influential as we are led to believe.

They have a monopoly over this resource. Of course they control the price. Even if they don't, there is no incentive for them to try to bring the prices down.

I don't see any problem with notes having "the same picture of the Quaid & (same exact pose!)" as I've never had a problem with it in Pakistan. You could cleary tell which note is which, because a) they all have different colours/desings and b) it say on the notes, what the value is.

The bills in Pakistan don't help visually handicapped people identify what denomination they are holding. I don't know how it is with the newer bills, but the old ones were definitely not helpful in this regard.

:bash:

This the economic progress thread.

We have been repeatedly asking people to refrain from off-topic posts but a certain group of them don't seem to get the message. We have a nice friendly atmosphere here and would like to keep it that way but if this doesn't stop, some action against them would be inevitable.

I am not against having fun but please stop derailing every thread and keep off-topic posts to the Gupshup section.

:bash:

This the economic progress thread.

We have been repeatedly asking people to refrain from off-topic posts but a certain group of them don't seem to get the message. We have a nice friendly atmosphere here and would like to keep it that way but if this doesn't stop, some action against them would be inevitable.

I am not against having fun but please stop derailing every thread and keep off-topic posts to the Gupshup section.

O' great and powerful Lord of cheese! Thy flatulence is the stuff of legends! I request thy audience for but a moment! O' ruler of all dairy farms and contributor of methane, in no small amounts! Your humble subject summons your undivided attention!

GRANT ME AN ANSWER!



.........






Can I um comment to the "oil price" discussion or would I have to suffer the indignity of having a wedge of seasoned provolone being shoved my ass?

Ah screw it! Provolone or no provolone! I shall have to risk my precious fanny! :laugh:


The oil prices are being driven upwards by the speculators in the commodity markets not by the Arabs. Arabs sell their oil to the conglomerates who bring it to the commodity markets in London, New York etc. where it is bidded on. There is a thing called "futures trading" in which the commodities future stockpiles are traded and the people doing the trading are the ones causing this artificially high ceiling being witnessed in the commodity market nowadays. Iran tests a few missiles and they soil their pants and go into a buying frenzy causing a supply and demand problem, thereby pushing the prices up. In actuality, nothing has happened, KSA is still pumping the same amount of oil as it did yesterday and the day before but the prices keep going up! When KSA announced in the past few days that they will ramp up production by 800000 barrels, all it did was bring the price down $2.00 for a day and then it was business as usual.

The only power that these oil factories (OPEC Cartel) have is of throttling the oil production and they can't do that because the U.S. has its foot way up their collective asses. As for the rebellious Oil producing nations such as Iran, they have so many economic sanctions levied against them by world bodies such as EU and UN that they have come to depend on their oil revenues to keep afloat, take away those revenues and their economies will go bellyup in a matter of months.

There is allot more at play then what we are told by CNN, BBC & FOX. If you really want to know whats going on in the financial markets then read some financial daily's and things will start to make sense.

So yeah, the problem is speculators and not the producers.

Thanks for sharing your feelings with us.


Nobody cares! :laugh:



Actually i do, but im not in the mood to read up on the economy of the oil industry, two nights before by Chemistry exam.

:bash:

This the economic progress thread.

We have been repeatedly asking people to refrain from off-topic posts but a certain group of them don't seem to get the message. We have a nice friendly atmosphere here and would like to keep it that way but if this doesn't stop, some action against them would be inevitable.

I am not against having fun but please stop derailing every thread and keep off-topic posts to the Gupshup section.



oooops!!.. got ur point....

apologies...will take care in future..

i thought oil prices have an impact on economy..dats all.. :dunno:

neways,,,wont happen again....

http://www.dailytimes.com.pk/boss/images/191_cover_story_a.jpg

Click below for complete interview
http://www.dailytimes.com.pk/boss/detail.aspx?content=139&dt=

ISLAMABAD, July 15: Prime Minister Syed Yousuf Raza Gilani has declared Larkana Industrial Estate as a tax-free zone for a period of 10 years.

Established in 1964-65 and spread over an area of 59 acres, Larkana Industrial Estate is yet to attract investment for establishing industries.

The premier has approved the duty free zone of Larkana in a bid to give support to businessmen of the city. The package is part of other projects approved for progress and development of Larkana city.

An income tax notification of SRO741 of 2008 has been issued to amend the Income Tax Ordinance 2001 for implementation of the decision.

According to the decision, profits and gains would be derived by a taxpayers from an industrial undertaking set up in Larkana Industrial Estate between July 1, 2008, and June 30, 2013 for a period of 10 years beginning with the month in which the industrial undertaking is set up or commercial production commenced, whichever is the later.

Exemption under this clause shall apply to an industrial undertaking which is owned and managed by a company registered under the Companies Ordinance 1984 (XLVII of 1984) and formed exclusively for operating the said undertaking, added the notification.

The duty-free facility is expected to make it an attractive place for domestic and international investors.

The zone already provides the provision of all basic utilities for the scheme, like water, gas, elect.

KARACHI, July 15: Sindh has urged the federal government to allow a 10-year tax holiday to cottage and small industries with a view to promote industrialisation.

Talking to Dawn on Tuesday, Sindh Minister for Industries and Commerce Rauf Siddiqui urged local and foreign investors to come out with plans to set up agro-based industries for which the government would provide land and all other faculties.

He said during his recent visit to Saudi Arabia, investors showed keen interest in setting up agro-based industries in the interior.

There was great scope for setting up juice factories in mango-growing areas and tomato paste units in tomato growing areas. Land has been allotted to an investor to set up a date processing plant at Khairpur Mirs for domestic as well as export purposes.

He said an economic operation wing has been set up at SITE office to provide all facilities, from allotment of land to utility connections on the spot to intending investors.

A complaint cell has also been established to deal with cases of harassment of investors by government departments.

He said he further asked the prime minister and PPP co-chairperson Asif Zardari in a special cabinet meeting to allow investors to set up 200MW power plants to cater to the electricity needs of units in eight major industrial zones in the province.

Presently, the Alternate Energy Commission allows 50MW plants without seeking permission from the government.

He said these power plants would provide a power base to the industry which was facing problems due to interruption in power supply.

Frequent load-shedding has increased their cost of doing business making textile exports uncompetitive in the world market.

Mr Siddiqui said the main emphasis was on development of cottage and small industry.

He said that Sindh handicraft, including Ajrak and embroidered caps, provide great attraction to tourists visiting the province and there is a good international market for Sindhi ceramic and furniture in the world market.

The minister said that he had directed that at every exhibition at the Karachi Expo Centre, two stalls would be reserved for Sindh handicraft so that foreign buyers could place order.

The ministry has designed a liberal land policy to provide land for industries on reduced rates and 10-year installment facility.

Ah screw it! Provolone or no provolone! I shall have to risk my precious fanny! :laugh:


The oil prices are being driven upwards by the speculators in the commodity markets not by the Arabs. Arabs sell their oil to the conglomerates who bring it to the commodity markets in London, New York etc. where it is bidded on. There is a thing called "futures trading" in which the commodities future stockpiles are traded and the people doing the trading are the ones causing this artificially high ceiling being witnessed in the commodity market nowadays. Iran tests a few missiles and they soil their pants and go into a buying frenzy causing a supply and demand problem, thereby pushing the prices up. In actuality, nothing has happened, KSA is still pumping the same amount of oil as it did yesterday and the day before but the prices keep going up! When KSA announced in the past few days that they will ramp up production by 800000 barrels, all it did was bring the price down $2.00 for a day and then it was business as usual.


So yeah, the problem is speculators and not the producers.

"Barack Obama's great insight is to blame "speculators" for raising oil prices artificially. This could even be true, but if so, it's irrelevant. Speculators cannot affect the price of oil in the long run. What speculators do is get us to the long run sooner. If they think underlying forces of supply and demand will ultimately result in oil at $200 per bbl., they will bid up the price until it is close to $200 per bbl. already. Similarly, if speculators think the price of oil will go down, they will drive it down more quickly. So, actually, speculation can be seen as a good thing: it forces us to adjust to higher prices more quickly than otherwise, and it gives us the benefit of lower prices more quickly as well."

Source: Time Magazine, June 26, 2008.

Everyone gives his/her own version of why the prices are going up. I've never seen two different people agree on it, and I'm talking about people who should know.

So yeah, the problem is speculators and not the producers.

Experts are now realizing that Saudi Arabia has actually been inflating figures in regards to the amount of oil they have. They've been lying to us and saying its much higher, and so we all were secure thinking that everything was ok and that the Saudis could pump oil for the next 100 years. However, now its becoming clear that the Saudis actually don't have as big of a reserve as they claimed, since they aren't able to significantly increase production. This is causing major jitters, and the realization that there is less supply and reserves than originally thought means that prices are going up and up. Saudi Arabia is to blame for lying to us all along. Now that we realize the truth, things are going haywire. Of course, speculation plays into that, but the Saudis have given the speculators a major reason to pay higher prices for oil.

I suppose we are all to blame - we should have known that you must never trust the Saudis.

Experts are now realizing that Saudi Arabia has actually been inflating figures in regards to the amount of oil they have. They've been lying to us and saying its much higher, and so we all were secure thinking that everything was ok and that the Saudis could pump oil for the next 100 years. However, now its becoming clear that the Saudis actually don't have as big of a reserve as they claimed, since they aren't able to significantly increase production. This is causing major jitters, and the realization that there is less supply and reserves than originally thought means that prices are going up and up. Saudi Arabia is to blame for lying to us all along. Now that we realize the truth, things are going haywire. Of course, speculation plays into that, but the Saudis have given the speculators a major reason to pay higher prices for oil.

I suppose we are all to blame - we should have known that you must never trust the Saudis.

Seriously?! All we've been riding on when it comes to reserve estimates for the biggest producer in the world has been the producer abiding by the honour system?! I wouldn't trust a car salesman if he told me the motor oil was filled up yesterday, so this sounds a bit silly for me. As far as I know, Aramco was co-owned by an American company before Saudi Arabia bought all the assets, so wouldn't they have known the actual size of the reserves?

"Barack Obama's great insight is to blame "speculators" for raising oil prices artificially. This could even be true, but if so, it's irrelevant. Speculators cannot affect the price of oil in the long run. What speculators do is get us to the long run sooner. If they think underlying forces of supply and demand will ultimately result in oil at $200 per bbl., they will bid up the price until it is close to $200 per bbl. already. Similarly, if speculators think the price of oil will go down, they will drive it down more quickly. So, actually, speculation can be seen as a good thing: it forces us to adjust to higher prices more quickly than otherwise, and it gives us the benefit of lower prices more quickly as well."

Source: Time Magazine, June 26, 2008.


This isn't true, because speculation pads those oil companies pockets with bigger and bigger profits. When oil hits $150 a barrel, oil execs often complain that they also have to pay those high prices since they don't produce enough oil from their own fields, and so they must buy the difference at those market rates. From what I've read, they then calculate that they're making only something like 7.5% profit margins since they calculate ALL their costs per barrel on that $150 figure (oil prices are also dictated by the HIGHEST price paid for a barrel on that day).

However, they're tricky because they don't factor in that they probably get at least 50% of their oil from their own fields, and that they just need to pay to pump it out of the ground. So really, much of the oil only costs them like $7 a barrel, but because world prices are $150, they calculate their finances with that $150 figure(plus refining costs), and don't include the lower prices for the oil they pump themselves. They then pass the high cost per gallon of gas onto the consumer by saying that oil prices are $150/barrel. They figure that crude oil costs account for about 60% of the price of a gallon of gas, and so that works out to about $4 a gallon at $150 a barrel for crude. They don't factor in that at least 50% of the gasoline they provide comes from their own fields, and those barrels cost them like $7 since they just pay pumping costs and wages.

Thats how they can go before Congress and say they're only making 1-2 cents per gallon of gas, while still making $40 billion a year. They say that the high profits are because their sales volume is massive, and that 5% profit margins aren't high at all. They're corporations, they know how to fudge figures to make themselves not look like greedy SOBs.

They're selling about the same amount of gasoline as they were in 1999, but if they were paying less for a barrel of oil back then, then their profit margins should have been higher in the 90's, and they should have been making MUCH bigger profits back then, since they're selling about the same amount of gas now, but are paying more for it now. That is, if costs have gone up tremendously, and they're now making LESS per gallon of gas then they were before (and that is what they claim), then how have their profits skyrocketed? They're selling about the same amount of gas, and their other investments don't account for the difference in profits. At the very least, they should have been making about the same amount of money back then, but instead their profits increased like 400%.

Really, their story just doesn't add up. You can't make more money by selling the same amount of something at a lower profit margin now than when you were selling it at a supposedly higher profit back then. And considering that their other investments aren't bringing in tens of billions of dollars per year, then something just isn't adding up, right?




Corporations will do anything to maximize profits while making themselves look socially responsible. That's why they're making these claims that they're not really making much money per gallon of gas, while still paying for all those ads on American TV that show how great and progressive energy companies are because they're investing in other fuel sources (which in any case, is just another way for them to rake in the cash). They play the "we don't like high energy prices either!" and then push for the US gov't to allow them rights to drill in more places. Oil companies know that they can now finally get the gov't to cave in and allow them to drill in places they've wanted to drill in since the 70's. This way, they don't look like the greedy bastards they are, but instead look like patriots that want to free America from the 'grip of foreign oil,' while also battling for lower energy prices for US consumers - they want you to think they're patriotic and care about working families.

Seriously?! All we've been riding on when it comes to reserve estimates for the biggest producer in the world has been the producer abiding by the honour system?! I wouldn't trust a car salesman if he told me the motor oil was filled up yesterday, so this sounds a bit silly for me. As far as I know, Aramco was co-owned by an American company before Saudi Arabia bought all the assets, so wouldn't they have known the actual size of the reserves?

Saudia took full control of Aramco in 1980, and has conducted exploration since 1982. The figures which they present since 1982, when only the Saudis had control over Aramco, are the points of concern. I believe they also conducted "reassessments" of their oil reserves on the pretext that they now had better technology and therefore could more accurately estimate their reserves. There were several opportunities for them to fudge their figures.

Experts are now realizing that Saudi Arabia has actually been inflating figures in regards to the amount of oil they have. They've been lying to us and saying its much higher, and so we all were secure thinking that everything was ok and that the Saudis could pump oil for the next 100 years. However, now its becoming clear that the Saudis actually don't have as big of a reserve as they claimed, since they aren't able to significantly increase production. This is causing major jitters, and the realization that there is less supply and reserves than originally thought means that prices are going up and up. Saudi Arabia is to blame for lying to us all along. Now that we realize the truth, things are going haywire. Of course, speculation plays into that, but the Saudis have given the speculators a major reason to pay higher prices for oil.

I suppose we are all to blame - we should have known that you must never trust the Saudis.

No offence but that is the most absurd theory I have heard in a long time. You are telling me that the Saudis are so crafty that they have successfully duped the whole word into believing their lies and not only that but build their economies and national security infrastructure around this lie? You dont seriously believe that do you? The biggest operator of oil fields in Saudi Arabia is ARAMCO, which is a joint venture between KSA and US and there is no way in hell that ARAMCO does not know exactly how much oil there is in KSA's reserves. More importantly, oil is a matter of national security for the U.S because the whole defense infrastructure is built to operate on oil, so basically what you are saying is that KSA not only duped the U.S establishment but also the CIA?

Seriously, that is the most absurd argument I have heard in a while.

"Barack Obama's great insight is to blame "speculators" for raising oil prices artificially. This could even be true, but if so, it's irrelevant. Speculators cannot affect the price of oil in the long run. What speculators do is get us to the long run sooner. If they think underlying forces of supply and demand will ultimately result in oil at $200 per bbl., they will bid up the price until it is close to $200 per bbl. already. Similarly, if speculators think the price of oil will go down, they will drive it down more quickly. So, actually, speculation can be seen as a good thing: it forces us to adjust to higher prices more quickly than otherwise, and it gives us the benefit of lower prices more quickly as well."

Source: Time Magazine, June 26, 2008.

That is the most harebrained spin on words I have yet to come across in this whole oil fiasco. What I was saying was proven yesterday when oil nosedived $10 in one day, it finished at $7 down. This happened because investors realized that the prices are inflated and cannot be sustained at their current ceiling. So speculators are not a "good thing", quite the contrary! Assholes are screwing everyone. We need some sort of Government intervention or regulation in futures trading otherwise I see $200 per barrel in the not so distant future.

Saudia took full control of Aramco in 1980, and has conducted exploration since 1982. The figures which they present since 1982, when only the Saudis had control over Aramco, are the points of concern. I believe they also conducted "reassessments" of their oil reserves on the pretext that they now had better technology and therefore could more accurately estimate their reserves. There were several opportunities for them to fudge their figures.

Even if that was the case, it is still beyond comprehension how they can dupe every single intelligence gathering network in the world.

This isn't true, because speculation pads those oil companies pockets with bigger and bigger profits. When oil hits $150 a barrel, oil execs often complain that they also have to pay those high prices since they don't produce enough oil from their own fields, and so they must buy the difference at those market rates. From what I've read, they then calculate that they're making only something like 7.5% profit margins since they calculate ALL their costs per barrel on that $150 figure (oil prices are also dictated by the HIGHEST price paid for a barrel on that day).

However, they're tricky because they don't factor in that they probably get at least 50% of their oil from their own fields, and that they just need to pay to pump it out of the ground. So really, much of the oil only costs them like $7 a barrel, but because world prices are $150, they calculate their finances with that $150 figure(plus refining costs), and don't include the lower prices for the oil they pump themselves. They then pass the high cost per gallon of gas onto the consumer by saying that oil prices are $150/barrel. They figure that crude oil costs account for about 60% of the price of a gallon of gas, and so that works out to about $4 a gallon at $150 a barrel for crude. They don't factor in that at least 50% of the gasoline they provide comes from their own fields, and those barrels cost them like $7 since they just pay pumping costs and wages.

Thats how they can go before Congress and say they're only making 1-2 cents per gallon of gas, while still making $40 billion a year. They say that the high profits are because their sales volume is massive, and that 5% profit margins aren't high at all. They're corporations, they know how to fudge figures to make themselves not look like greedy SOBs.

They're selling about the same amount of gasoline as they were in 1999, but if they were paying less for a barrel of oil back then, then their profit margins should have been higher in the 90's, and they should have been making MUCH bigger profits back then, since they're selling about the same amount of gas now, but are paying more for it now. That is, if costs have gone up tremendously, and they're now making LESS per gallon of gas then they were before (and that is what they claim), then how have their profits skyrocketed? They're selling about the same amount of gas, and their other investments don't account for the difference in profits. At the very least, they should have been making about the same amount of money back then, but instead their profits increased like 400%.

Really, their story just doesn't add up. You can't make more money by selling the same amount of something at a lower profit margin now than when you were selling it at a supposedly higher profit back then. And considering that their other investments aren't bringing in tens of billions of dollars per year, then something just isn't adding up, right?




Corporations will do anything to maximize profits while making themselves look socially responsible. That's why they're making these claims that they're not really making much money per gallon of gas, while still paying for all those ads on American TV that show how great and progressive energy companies are because they're investing in other fuel sources (which in any case, is just another way for them to rake in the cash). They play the "we don't like high energy prices either!" and then push for the US gov't to allow them rights to drill in more places. Oil companies know that they can now finally get the gov't to cave in and allow them to drill in places they've wanted to drill in since the 70's. This way, they don't look like the greedy bastards they are, but instead look like patriots that want to free America from the 'grip of foreign oil,' while also battling for lower energy prices for US consumers - they want you to think they're patriotic and care about working families.


Very nice insight! :yes: Thankyou for that priceless bit of information.

Heres a lillipop for you! :colgate:

http://images.inmagine.com/168nwm/photoaltozenshui/yaa006/yaa006000013.jpg


I was hungry :shifty:

No offence but that is the most absurd theory I have heard in a long time. You are telling me that the Saudis are so crafty that they have successfully duped the whole word into believing their lies and not only that but build their economies and national security infrastructure around this lie? You dont seriously believe that do you? e biggest operator of oil fields in Saudi Arabia is ARAMCO, which is a joint venture between KSA and US and there is no way in hell that ARAMCO does not know exactly how much oil there is in KSA's reserves.




Firstly, its not absurd because ARAMCO is NOT involved with the US, but has been under FULL control of the Saudis since 1980, and so all the figures published by Aramco can be very easily manipulated because there is no outsider. In fact, Aramco doesn't even disclose its earnings, because its doesn't need to answer to anyone. Their ties to the US were severed in 1980, so that whole argument that they can't lie since they're partly owned by Americans just isn't true.

Secondly, I don't know where you found an argument saying that they don't know the true reserves of Saudi Arabia. What I said is that they are fudging the figures, not that they're clueless.

Thirdly, Saudi Arabia has EVERY reason in the world to lie. I'm sure you know that OPEC only allows its members to produce oil proportional to the country's 'proven' reserves. Therefore, would it not be unreasonable to think that Saudi Arabia would claim it had bigger reserves than it really did in order to secure rights to pump more oil? Aramco controls 99% of Saudi Arabia's oil, so its very simple to inflate figures because only one corporation is involved. Even more convenient is the fact that Aramco is owned wholly by the Saudi Govt.




More importantly, oil is a matter of national security for the U.S because the whole defense infrastructure is built to operate on oil, so basically what you are saying is that KSA not only duped the U.S establishment but also the CIA?

Seriously, that is the most absurd argument I have heard in a while.

The CIA collects intelligence info on threats to the United States' security, I don't think they really delve deep into energy politics. But the US as a whole has obviously been very involved in energy concerns, thats why we station so many troops there and are so involved. And also, the US military is trying to make itself energy independent just in case something happens to oil supply. So you're right, oil is of grave concern to the US, but that doesn't really mean that aramco has been honest with us all.

And this CIA, which you seem to insinuate knows the truth about everything of concern to national security, is the very same CIA that was firmly convinced that Saddam had weapons of mass destruction. So really, would it be a surprise to you to find out that the CIA may have been wrong about something of huge importance? The whole Iraq war was pretty much based on the CIA's intelligence from Ahmed Chalabi saying Saddam had WMD's. They were easily fooled back then, so what's so crazy about thinking that they may be fooled now? Honestly, do you have so much faith in the CIA's intelligence gathering capabilities when the whole world knows the Iraq war was based on faulty evidence that the CIA collected???






You keep insisting this is some looney theory, but even the former head of Iran's national oil company has stated that OPEC estimates of proven oil reserves are grossly inflated.

Here are some other points for you to take into consideration before concluding that I'm some lunatic:

"The world’s proved reserves have been have been falsely puffed up by the inclusion of 300 billion barrels of speculative resources, according to the former head of exploration and production at Saudi Aramco, " -http://www.energybulletin.net/node/36458


" The kingdom has only been able to maintain output by drilling new wells and using expensive technology to get at hard-to-reach oil. Aramco has inflated the kingdom's proven reserves for political reasons and overestimated what it can recover by making faulty technical assumptions, Simmons says." -http://www.usatoday.com/money/world/2004-05-10-saudi-oil_x.htm


"The assumption in this logic is that West Asia is sitting on huge oil reserves. But there are numerous oddities about the estimates of the West Asian oil reserves.

Even though a lot of production of oil has happened, year-on-year figures of oil reserves have been constant. For example, Saudi Arabia, reported insignificant changes in its oil reserves during 1980-89. Then in 1990, the reported figures showed that its oil reserves had grown by 90 billion barrels (equivalent of 3 North Seas -- one of the biggest non-OPEC oil reserves in the world).

Similar is the case with Iran and Iraq. Why does this happen? This is because of the way OPEC operates. The production quotas for OPEC members are determined by their production capacity and the production capacity is determined by reserves the member country has. So it might turn out to be that OPEC has a lot less oil left than it claims it has."http://www.rediff.com/money/2005/sep/01oil.htm


And check this out:

"Officials from Saudi Arabia’s oil industry and the international petroleum organizations shocked a gathering of foreign policy experts in Washington yesterday with an announcement that the Kingdom’s previous estimate of 261 billion barrels of recoverable petroleum has now more than tripled, to 1.2 trillion barrels"http://www.arabnews.com/?page=6&section=0&article=44011&d=29&m=4&y=2004

So see, the Saudis can literally increase their figures overnight by a trillion barrels!!! Also note the poor Saudi math skills. 261 billion x 3=1.2 trillion? They didn't notice their figures actually more than quadrupled.

Even if that was the case, it is still beyond comprehension how they can dupe every single intelligence gathering network in the world.

Why is that? When you control the information, the only info that intelligence agencies can get is that info. Unless they come in with their own geological surveys.

And lets also not forget the obvious fact: The more oil the Saudis have, the more important they are.

ISLAMABAD: The government is likely to introduce higher duty regime in the new Trade Policy 2008-09 on import of luxury items including different electronic goods for the sole purpose to narrow the trade gap, officials in the Ministry of Commerce told Daily Times Wednesday.

In the last fiscal year 2007-08 the country spent $39.968 billion on imports of different items including oil and food items (30.87 percent increased over last year). However, the export of country stood at $19.223 billion (13.23 percent increase) resulting in to a trade deficit of $20.745 billion (52.95 percent increase over last year) by the end of last fiscal year 2007-08.

The Trade Policy for the current fiscal year 2008-09 would be announced on Friday with emphasis on discouraging imports and incentives for exports of traditional as well as non-traditional items to new markets. The Ministry of Commerce is likely to set an export target of $21.7 billion for the current fiscal year 2008-09 as compared to realized export figure of $19.222 billion in the last fiscal year 2007-08.

A proposal is under consideration to allow overseas Pakistanis to import up to 7-year old and used vehicles in Trade Policy 2008-09, under Transfer of Residence, Gift, and Personal Baggage Schemes.

Trade Policy is also likely to allow 25 percent export freight subsidy through land and sea routes for promotion of exports of cars and other vehicles manufactured in Pakistan.

The officials said it was impossible for the government to reduce spending on oil and food items imports as it leads to political disturbance in the country.

The officials were of the view that heavy duty on imports of electronics goods would save the government not more than $500 million while on other side smuggling of all such items would further get momentum.

The overall measures, the government would take place in the new Trade Policy would save the government about $2 billion, the official maintained. However, the rising tendency in oil prices at international market would further enhance the government spending for POL products imports and expecting that the overall import bill might further increased instead of declining in the fiscal year 2008-09.

This year the emphasis of the trade policy would be to cut the import volume by 50 percent so that macro-economic targets fixed for the current fiscal year 2008-09 are met. The new target of $21.7 billion is regarded over ambitious due to persistent energy crises including load shedding and gas shortages for the industrial sector across the country.

Sources said government would take several measures to reduce the import by 50 percent in the current fiscal year through trade policy measures that also include reduction of $1 billion in cotton imports.

And the policy would also carry measures for cotton export by additional $2 billion in the current fiscal year, sources added.

Increase in trade with regional countries especially the neighbouring countries like India, Afghanistan, Iran and China would be the prime focus of the Trade Policy as this would help hike exports on competitive transportation charges. The major export item is textile, which is the 60 percent of total export and government would give special incentive for the textile sector in the shape of Research and Development (R&D) Support, which is proposed at Rs 30 billion for the current fiscal year 2008-09.

Firstly, its not absurd because ARAMCO is NOT involved with the US, but has been under FULL control of the Saudis since 1980, and so all the figures published by Aramco can be very easily manipulated because there is no outsider. In fact, Aramco doesn't even disclose its earnings, because its doesn't need to answer to anyone. Their ties to the US were severed in 1980, so that whole argument that they can't lie since they're partly owned by Americans just isn't true.

Secondly, I don't know where you found an argument saying that they don't know the true reserves of Saudi Arabia. What I said is that they are fudging the figures, not that they're clueless.

Thirdly, Saudi Arabia has EVERY reason in the world to lie. I'm sure you know that OPEC only allows its members to produce oil proportional to the country's 'proven' reserves. Therefore, would it not be unreasonable to think that Saudi Arabia would claim it had bigger reserves than it really did in order to secure rights to pump more oil? Aramco controls 99% of Saudi Arabia's oil, so its very simple to inflate figures because only one corporation is involved. Even more convenient is the fact that Aramco is owned wholly by the Saudi Govt.






The CIA collects intelligence info on threats to the United States' security, I don't think they really delve deep into energy politics. But the US as a whole has obviously been very involved in energy concerns, thats why we station so many troops there and are so involved. And also, the US military is trying to make itself energy independent just in case something happens to oil supply. So you're right, oil is of grave concern to the US, but that doesn't really mean that aramco has been honest with us all.

And this CIA, which you seem to insinuate knows the truth about everything of concern to national security, is the very same CIA that was firmly convinced that Saddam had weapons of mass destruction. So really, would it be a surprise to you to find out that the CIA may have been wrong about something of huge importance? The whole Iraq war was pretty much based on the CIA's intelligence from Ahmed Chalabi saying Saddam had WMD's. They were easily fooled back then, so what's so crazy about thinking that they may be fooled now? Honestly, do you have so much faith in the CIA's intelligence gathering capabilities when the whole world knows the Iraq war was based on faulty evidence that the CIA collected???






You keep insisting this is some looney theory, but even the former head of Iran's national oil company has stated that OPEC estimates of proven oil reserves are grossly inflated.

Here are some other points for you to take into consideration before concluding that I'm some lunatic:

"The world’s proved reserves have been have been falsely puffed up by the inclusion of 300 billion barrels of speculative resources, according to the former head of exploration and production at Saudi Aramco, " -http://www.energybulletin.net/node/36458


" The kingdom has only been able to maintain output by drilling new wells and using expensive technology to get at hard-to-reach oil. Aramco has inflated the kingdom's proven reserves for political reasons and overestimated what it can recover by making faulty technical assumptions, Simmons says." -http://www.usatoday.com/money/world/2004-05-10-saudi-oil_x.htm


"The assumption in this logic is that West Asia is sitting on huge oil reserves. But there are numerous oddities about the estimates of the West Asian oil reserves.

Even though a lot of production of oil has happened, year-on-year figures of oil reserves have been constant. For example, Saudi Arabia, reported insignificant changes in its oil reserves during 1980-89. Then in 1990, the reported figures showed that its oil reserves had grown by 90 billion barrels (equivalent of 3 North Seas -- one of the biggest non-OPEC oil reserves in the world).

Similar is the case with Iran and Iraq. Why does this happen? This is because of the way OPEC operates. The production quotas for OPEC members are determined by their production capacity and the production capacity is determined by reserves the member country has. So it might turn out to be that OPEC has a lot less oil left than it claims it has."http://www.rediff.com/money/2005/sep/01oil.htm


And check this out:

"Officials from Saudi Arabia’s oil industry and the international petroleum organizations shocked a gathering of foreign policy experts in Washington yesterday with an announcement that the Kingdom’s previous estimate of 261 billion barrels of recoverable petroleum has now more than tripled, to 1.2 trillion barrels"http://www.arabnews.com/?page=6&section=0&article=44011&d=29&m=4&y=2004

So see, the Saudis can literally increase their figures overnight by a trillion barrels!!! Also note the poor Saudi math skills. 261 billion x 3=1.2 trillion? They didn't notice their figures actually more than quadrupled.




Such detailed and sound logic. Very interesting; but you are making a very basic mistake.
Let's Suppose you are right and Saudi Arabia made false claims about its reserves. My question is If Saudi Arabia had not lied about it's reserve, Oil prices would have reached their present levels a decade ago. So why are you complaining? You enjoyed $20 Barrel for years and years! If anything, they have done you a favour by providing the world with under-priced oil for so long.

Even if that was the case, it is still beyond comprehension how they can dupe every single intelligence gathering network in the world.
Manipulating figures is not a ridiculous idea. Shell used to do it and overstate their reserves.

The oil price is going down yay! :banana:

Lets hope it keeps going down.

I really thought oil was overvalued (either that or it was greatly undervalued over the last 2 decades)

The oil price is going down yay! :banana:

Lets hope it keeps going down.

I really thought oil was overvalued (either that or it was greatly undervalued over the last 2 decades)

According to my argument, it was overvalued.

According to Khanrak's argument (which I still dont believe, no offence bud), it was undervalued.

I pulled out just in time! pun intended

Oil stocks have plumetted! I was trading a few stocks less than a month ago, which were in the 60's, now they have been reduced to less than 20! :shocked:

Its best to stay away from the market right now. :shifty:

Ooga, do you trade full time? Or is it just a side/part time thing?

I wanna set up a mutual fund in a couple of years after I do a CFA and MBA and get some experience :)

Ooga, do you trade full time? Or is it just a side/part time thing?

I wanna set up a mutual fund in a couple of years after I do a CFA and MBA and get some experience :)

And by "set up" you mean actually establish a mutual fund? Not just buy into one?

Allrighty then! :laugh:

I smell a screw job.

The oil price is going down yay! :banana:

Lets hope it keeps going down.

I really thought oil was overvalued (either that or it was greatly undervalued over the last 2 decades)
Let's see how mcuh down it goes. Let's not rejoice, OK? I think anything above $70 is expensive.

It'll go down, then up, then down, then up, then down, then up, then down, then up, then down, then up.

Yeah I just copy pasted it.

It will not go down much. It's a commodity like land. Price may go down temporarily, but never ever ever will it stay down.

It will be clear in a few days. Oil futures for delivery in August have been set in the $120's. It wont go down much. Economists refuse to accept that the energy bubble has bursted, because allot rides on the stability of this commodity. Had the leading financial daily's accepted that the bubble has bursted then we would have seen turmoil and the prices would have plunged even further!

Energy had become a parallel market though, there was everything else and then there was energy. The market kept sinking but energy remained steady. It was quite evident that the bubble would burst sooner or later, the prices were grossly overestimated.

All this has happened after market forces finally came to the realization that these artificial ceilings are getting out of control and sustainability became a major issue. This is what I was saying all along! that the prices are artificially high. Had there been a supply and demand problem then the prices would be high, not artificially but genuinely due to less product being available in the market. With a genuine supply gap, prices would never plummet $10-$14 in 1 week!

Anywho, it will be clear where the prices are headed in the next 2-3 weeks.

It was a good run though! People minted money during this bullish energy market. Returns were plentiful in a very short amount of time. But the greedy idiots who didnt know when to pull out took heavy loses in this past month. One of my friends sustained a $46000 loss before he liquidated his holdings!

I am seriously looking into steel and every industry associated with it, espescially coal. Steel is in short supply all over the world and "coking coal" is needed for the production of steel which is why all the steel giants are on a buying spree of any coal production facilities they can get their hands on, in order to ensure future supply of coal resulting in the smooth production of steel.

Steel demand over the world is the result of ever increase in demands of powerhouses like China and India....The prices shooting up is also the result of shortage of raw materials especially from Canada and Australia as their mines are flooded.....

Steel demand over the world is the result of ever increase in demands of powerhouses like China and India....The prices shooting up is also the result of shortage of raw materials especially from Canada and Australia as their mines are flooded.....

That just cracked me up! :laugh:

These two are still poor countries. Poorer than other countries like Mexico, which are routinely looked down upon in the Int'l Media! China & India are part of a larger group of emerging economies, which includes Pakistan aswell! They are no way near "powerhouse" status! :laugh: The difference between them and others is their large populations!

That just cracked me up! :laugh:

These two are still poor countries. Poorer than other countries like Mexico, which are routinely looked down upon in the Int'l Media! China & India are part of a larger group of emerging economies, which includes Pakistan aswell! They are no way near "powerhouse" status! :laugh: The difference between them and others is their large populations!

yes ur rite...pop does play a huge role.. when u have a middle class of 25,00,00,000..world does take a notice..
countries like mexico n georgia are looked down by intnl media..

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_rate

see..d funda is..d demand of commodities created is HUGE ..when these 2 countries (of pop over a billion each) grow over 9%--10%.. compared to..say ..geogia(12%)..

n also d fact that china has earned d tag of factory of d world due to its fantaboulas infrastructure.. n india d tag of back-office..

but yes..we cant deny
...there still is a lot of poverty .. n loads of work to be done..
...its a difficult time now(inflation...surge in steel/oil prices)... still.. india managed a growth of 9% (3 times in a row) n china managed a 10% growth(nth time in a row)..where as performance of other countries plunged..i guess this shows strong fundamentals..
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29


lets hope 4 more developement ahead..specially south asian countries..

coming to d topic....
pakistan has lots to benifit from this..your cement exports surged this year(n i think that major factor here was a huge demand from india..)n loads of steel export to china too.. i beleive..so thats good for pakistan.. haina??

No need to get worked up, I was just pointing out facts! China are India are not "powerhouses"! No way near it!

yes ur rite...pop does play a huge role.. when u have a middle class of 25,00,00,000..world does take a notice..
countries like mexico n georgia are looked down by intnl media..

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_rate

see..d funda is..d demand of commodities created is HUGE ..when these 2 countries (of pop over a billion each) grow over 9%--10%.. compared to..say ..geogia(12%)..

I'm sorry, but WTF?! You can't lump a country like Georgia WITH Mexico! Are you out of your mind???? Mexico is a HUGE country with more than 100 million people and its one of the Emerging economies of the world. Even by 2050, The average Indian and the average Chinese isn't expected to be as rich as the average Mexican! See Goldman Sachs.

n also d fact that china has earned d tag of factory of d world due to its fantaboulas infrastructure.. n india d tag of back-office..

I would like Pakistan to do down China's way, as Manufacturing absorbs a lot more labour and is a lot more beneficial to society at large than just Call Centers, which only benefit a select few.

but yes..we cant deny
...there still is a lot of poverty .. n loads of work to be done..

Powerhouses don't have such issues.


https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29


GDP PPP is NOT a good measure of how "big" or "strong" a country's economy is! Nominal GDP is a BETTER indicator in this regard! However, PPP is good indicator to measure how well off the average guy is!

See this post by Secular:

http://www.skyscrapercity.com/showpost.php?p=21662260&postcount=149

PPP should not be used to judge the economic influence and strength of a country compared to other countries.

But, PPP is very important to judge how well off the average person is. Making $10,000 in Pakistan is very different to making $10,000 in Germany, for instance, and, you need the PPP to tell you that. The person making $10,000 in Pakistan is much better off than the person making $10,000 in Germany because of price levels.

The criticism against the basket then applies to other things like consumer price indices and inflation as well. Then should we stop with that too? Everyone of the 170 million people will have different things in their basket, but, this is a good estimation of what the average person spends his money on. Similarly, you also get a good estimate of the price levels by averaging the price levels of the goods in the basket. I mean, you could make the argument that GDP/capita doesnt really show you the real incomes of people just puts an average figure based on total economic output and population size. GDP/capita is even worse than these baskets and indices because the latter take into account real spending patterns and what is bought more is weighed more heavily in the basket, but, the GDP/capita gives no indication of the income distribution. You could had 70% of the wealth just staying with the top 10%.

George Bush said that India's middle class is bigger than the entire population of the US. I don't know if that is true. Certainly the rising demand from India and China has played a huge role in the rising prices of oil.

Also, in my view the best measure of development is the HDI.

if china is not a powerhouse, i dont know what is.

as Napoleon said over 200 years ago, "let china sleep for when she wakes, she will shake the world."

well the dragon is awake.

Also, in my view the best measure of development is the HDI.

Bang on!

if china is not a powerhouse, i dont know what is.

Not yet! Its PREDICTED to be! It HASN'T reached that STATUS yet!

Not yet! Its PREDICTED to be! It HASN'T reached that STATUS yet!

it has 1.3 some trillion dollars in foreign reserves, one of the largest economies, an incredible growth rate, the largest military in the world, the americans need to borrow money from them for their wars and China is set to destroy earlier benchmarks for them taking over as the largest economy in the world by 30 years. wake up my friend, China is here already.

Fine. I don't want to derail this thread. We should just stick to Pakistan & its economy.

No let-up in flight of foreign capital (http://www.brecorder.com/index.php?id=773397&currPageNo=1&query=&search=&term=&supDate=)
AHMED MALIK

KARACHI (July 20 2008): The outflow of foreign portfolio investment from the country's equity market continued during the outgoing week and the foreign investors withdrew over $22.359 million in this period. The cumulative net outflow of $43.802 million had been witnessed till July 18, 2008 while the cumulative figures of current calendar year (January 01, 2008 to July 18, 2008) was recorded at negative 288.351 million.

Analysts believe that the recent trend of declining foreign portfolio investment in the country's equity market was mainly due to the prevailing political uncertainty, law and order situation, geo-political situation and the weakening of the country's economic indicators.

"Despite many measures taken by the apex regulator Securities and Exchange Commission of Pakistan (SECP) and the Karachi Stock Exchange (KSE), the foreign investors' confidence could not revived and they continued to withdraw their investments from Pakistan's equity market", a leading analyst said.

Many of the trading rules were amended, an extension of further two years was given for implementation of Capital Gains Tax, the entire CFS Mk-II was introduced. However, the bearish trend continued at the share market during the last three months.

The week started with a positive note as a fresh foreign portfolio investment of $149,246 came into the country's equity market on Monday. However, an outflow of this mode of investment was seen during the remaining four trading sessions at the share market.

According to data released by the National Clearing Company of Pakistan (NCCPL) an outflow of over $14.084 million was witnessed on Tuesday, $567,089 on Wednesday, over $1.268 million on Thursday and an outflow of over $6.587 million on Friday. The data show that a total of over $111.032 million was withdrawn by the foreign investors from the country's equity market in the previous month.

The Karachi Stock Exchange has witnessed heavy selling pressure during the last three months and the benchmark KSE-100 index had declined by 35 percent or 5,441.56 points from its all time high level of 15,676.34 points recorded on April 18, 2008. The overall market capitalization had also drastically declined by over 33 percent or Rs 1,594 billion to Rs 3,196 billion on July 18, 2008 from Rs 4,790 billion recorded on April 18, 2008.

Copyright Business Recorder, 2008

Country facing economic turmoil: Gilani (http://www.brecorder.com/index.php?id=773383&currPageNo=1&query=&search=&term=&supDate=)
ZAHEER ABBASI

ISLAMABAD (July 20 2008): Prime Minister Syed Yousuf Raza Gilani on Saturday said that international companies have offered $4 billion investment in energy sector in Pakistan and vowed that every effort would be made to bring the country out of prevailing, economic, energy, law and order crises.

-- Prime Minister says long years of dictatorship have plunged the country into crises

-- According to him, there's a flour shortage, load-shedding, terrorism and extremism, restoration of judges, economic and, above all, the inflation and unemployment which have their roots in the past

-- Believes high inflation is the result of running the country by printing money and heavy borrowing from the State Bank of Pakistan

-- Asks traders, industrialists and investors to make maximum investment in Pakistan

-- Seeks people's support and co-operation by saying that reduced consumption of fuel and edible oil can save billions of dollars in foreign exchange, reduce trade deficit but also gradually reduce the external debt

-- Assures farmers that government will significantly increase the minimum wheat support price before sowing of the next crop

-- Gives small growers good news that government will pay premium for them against crop loans

-- Declares that govt is working towards increasing milk production to bring about a White Revolution

-- Claims international companies are willing to invest $4bn in power sector.

"There would be minimum load shedding by next year after the measures taken by the government to address the situation," he assured the nation in his first televised address and held the previous government responsible for the prevailing crises, urging the nation to trust the coalition government.

In order to attract investment for Thar coal, he said a conference would be held in Washington on July 29, which would be chaired by him. He said that 2.5 million-ton wheat would be imported to curtail wheat crisis.

Prime Minister stated that Pakistan is facing the crisis of flour shortage, load-shedding, terrorism and extremism, and above all the inflation and unemployment which have their roots in the past.

In this situation, he said there were two options for the government; either to surrender to these problems or face them. I have chosen the second option to face the challenge.

Gilani said these problems were because of two reasons, external factors included rising oil and food prices in the international market while on domestic front during the last eight years, the government neither realised the challenge nor did any future planning. Thus the country was plunged into these crises.

He said it unfortunate that whenever PPP government came into power, the country was facing enormous problems with grave threats to the federation. He repeated that dictatorship remained at the helm of affairs in Pakistan most of the period in its history and every dictator made efforts to prolong his rule at the cost of country.

Gilani stated that the government was committed to resolve public issues. About judges' issue, he said that soon nation would hear good news. "We will take out this country from all the crises. We will give the people confidence and fulfil their dreams," he said.

Prime Minister maintained that after Quaid-e-Azam, Qauid-e-Awam Zulfiqar Ali Bhutto gave a new consciousness to the people of the country and said whatever pledges former Chairperson PPP Benazir Bhutto made to the nation, he would try to fulfil them.

He said February 18 has given a new hope to the nation with various parties came united on unified agenda to bring the country out of prevailing crisis. He assured the nation that he would sacrifice his life for the country.

He said that abundance of automobiles and mobile phones were not the growth yardsticks but unfortunately the previous government rather than setting up new industries relied on imports and created a consumption based economy. Agriculture was totally ignored and heavy borrowing from the State Bank was major reason of inflation in the country.

Outlining efforts of the government to counter these problems, he said first I would like to urge upon business community to keep their capital in Pakistan and they would be assured protection." He said that the government is importing 2.5 million ton wheat to ensure adequate supplies, and give agriculture loans Rs 30 billion for farmers.

Gilani said that the heads of allied parties would meet on July 23, in Islamabad to formulate a comprehensive strategy to eradicate terrorism and extremism. He said the country's nuclear assets are in safe hand and no one would be allowed to take action inside Pakistan.

APP ADDS: Prime Minister Syed Yousuf Raza Gilani pledged to the nation on Saturday to render every sacrifice to meet the challenges facing Pakistan and urged people to support the government in its efforts to steer the country out of the crises.

In his first address to the nation, after taking oath three months ago, the Prime Minister said, long years of dictatorship have plunged the country into crises.

"We will take out this country from all the crises. We will give the people confidence, we will give the nation not just their dream but its fulfilment,' he said in his address presented live on television and radio.

Prime Minister Gilani gave an overview of the problems the government had inherited and various steps that have been taken to stem the economic down slide and provide immediate relief to the common man. Gilani said Pakistan was facing the crisis of flour shortage, load-shedding, terrorism and extremism, restoration of judges, economic downslide and, above all, the inflation and unemployment which had their roots in the past.

"This situation sapped people's confidence and killed their hope," he said and added in this situation the government had only two ways; either to surrender to these problems or face them up front. "Like my political predecessors, I have chosen the second path (to fight against these challenges)."

Prime Minister Gilani attributed these problems to external factors, like rising oil and food prices in the international market. Secondly, he said during the last eight years, neither the gravity of international challenges were realised nor any future planning was made that created multiple problems and plunged the country into crises.

He described inflation as the biggest challenge and part of a global crisis, saying Pakistan today is faced with an economic turmoil. "Abundance of automobiles and mobile phones are not a yard-stick of progress," he said and added that the previous government instead of setting up new industries preferred imports and made Pakistan a consumer economy.

He said agriculture was totally ignored and inflation the country faced today, was the result of running the country by printing money and heavy borrowing from the State Bank of Pakistan.

Outlining efforts of the government to counter these problems, the Prime Minister said the government was trying to overcome inflation while avoiding past mistakes. Instead of cosmetic presentation of the economic situation, the priority of the government is to improve the situation in real terms, he added.

He said industrial and agriculture production would be increased to counter inflation and reduce financial deficits. Hoarding and profiteering will be done away with, he added. Prime Minister Gilani asked the traders, industrialists and investors to make maximum investment in Pakistan. "I appeal to my business community to keep their capital in Pakistan. We assure them every protection."

He also appealed to the nation to reduce consumption of those items, which were costing the country hugely in terms of foreign exchange. The Prime Minister said that reduced consumption of fuel and edible oil could save billions of dollars in foreign exchange, which will not only reduce trade deficit but also gradually reduce the external debt.

Being an agriculturist, Prime Minister said he was fully aware of the problems of the farming community. He regretted that an agrarian country like Pakistan was facing the problem of food shortage. The Prime Minister underlined steps the government has taken to overcome the problems.

The Wheat Support Price has been increased to Rs 625 per 40 kg from Rs 475 and the government will significantly increase the minimum support price before sowing of new crop. The government is importing 2.5 million tonnes of wheat to ensure adequate supplies, he added.

Agriculture loans for farmers have been increased by Rs 30 billion and an amount of over Rs 20.50 billion has been allocated for the agriculture development programme. He said the government has already announced a new policy for import of agriculture equipment and cheap tractors. Sizeable subsidy is being given on fertiliser besides abolishing sales tax on it, he added.

The insurance scheme for crop loans has been approved and he announced that the government would pay the premium for small growers. The Prime Minister said water reservoirs would be constructed on priority basis, as development of agriculture sector was impossible without adequate water supplies.

Prime Minister informed that the government was giving incentives to some 10,000 dairy farmers to increase milk production to bring about a White Revolution in the country.

Pakistan was facing the acute power shortage, which, the Prime Minister attributed to the neglect of the sector in the past eight years, which created an imbalance in supply and demand. The Prime Minister recalled that the country faced similar load shedding problem during the second government of Shaheed Benazir Bhutto.

At that time, he said, the private power producers were given incentives, adding today a large portion of the total energy production is obtained from projects set up by these companies.

"Just think what would have been the situation if the government of Pakistan People's Party (PPP) had not started these projects 14 years back," he posed a question. The Prime Minister said the government has taken a series of measures in a short span of time, which would help overcome load shedding significantly by next year.

Gilani said reposing confidence in the government's policies, international companies have offered to make $ 4 billion investment in power sector and work on the proposals is being undertaken at fast track. The government has taken practical steps to utilise the huge reserves of coal in Thar and for this purpose Thar Coal Authority has been set up.

The Prime Minister said he would chair a roundtable conference attended by international financial institutions on July 29 in Washington for investment in the sector. Moreover, special attention has been focused on alternative sources of energy including wind, solar and atomic energy, Gilani said.

Under the programme to conserve energy, besides various other steps, supply of energy saver bulbs would be ensured and due to these steps the future needs of energy would be fulfilled, he said.

The Prime Minister pointed out that no country could attract investment, or make progress, if the lives of ordinary citizens are insecure. "When we took over, hundreds of lives were lost in numerous suicide attacks in 2007, affecting thousands of people," he added.

He recalled that chairperson of Pakistan People's Party (PPP) Benazir Bhutto also became the target of dreadful wave of terrorism. The personnel of law enforcement institutions were also being targeted, he added. The Prime Minister informed that an extraordinary meeting of the heads of allied parties would be held on July 23, in Islamabad to formulate a comprehensive strategy to end terrorism and extremism.

Prime Minister Gilani said Pakistan was fighting the war against terrorism in its own interest and added that the country for its geographical location can play a central role for economic progress and peace in the region.

"This role of Pakistan is being acknowledged all over the world." He said good relations with neighbouring countries were the major planks of the country's foreign policy. It was with this spirit that Pakistan has agreed to hold fifth round of composite dialogue to improve ties with India and resolve all disputes, he added.

Referring to his first speech in the National Assembly, the Prime Minister said that he had clearly stated that resolution of Kashmir issue in line with the aspirations of Kashmiri people is essential for durable peace and prosperity of south Asian region. He said Pakistan wanted friendly ties with the entire world and vowed that sovereignty of Pakistan will never be compromised.

Gilani made it clear that no foreign power will be allowed to take action on Pakistan soil and added that any decision or action within its boundary will be taken by the country itself. The Prime Minister said the government is preparing a comprehensive strategy to improve and reflect true image of Pakistani nation in the world, particularly in the west.

This "can tell the world that we are the victim of terrorism and will leave no stone unturned to counter the menace." The Prime Minister reaffirmed that by the grace of Allah Almighty, Pakistan's defence is strong and "we are responsible nuclear power and our (nuclear) assets are in safe hands."

The whole nation has full trust in its armed forces and the government will utilise all resources to fulfil country's defence needs. The Prime Minister also announced a number of measures to provide relief to the common people.

The Prime Minister said under Benazir Income Support Programme, targeted support of Rs 1,000 each will be provided to the poor families to help them overcome poverty and inflation. He said initially, 3.4 million families would benefit from the scheme, which would be expanded later. For this scheme, he added, special Benazir Cards will be issued and the scheme will be formally launched on August 14.

The Prime Minister said that another scheme has already been launched for free issuance of national identity cards, which would benefit some 25 million people. He said Utility Stores would be established at every Union Council level to provide basic commodities of life including flour, ghee and pulses at cheaper rates.

Mobile Utility Stores in remote areas have already been started, while 1600 new Utility Stores are being set up soon. The Prime Minister said 20 percent increase in salaries and pension of government employees has been made, while minimum wages of labourers have been enhanced from Rs 4600 to Rs 6000 per month.

Yousuf Raza Gilani said a revolving fund of Rs 2 billion has been created under the Prime Minister's Housing Scheme and he would soon inaugurate its pilot projects at the federal as well as provincial capitals. Government employees and rural areas would be given special importance in this scheme, he added.

The Prime Minister said under the Green Transport Scheme the government has decided to run 8000 CNG buses in ten big cities. The scheme will cost around Rs 40 billion and its investors were being given special incentives, he added.

He said the Lady Health Workers programme introduced by Shaheed Mohtarma Benazir Bhutto in 1994 was appreciated and welcomed at the local and international level.

The government will add another 20,000 lady health workers this year in the existing number of 100,000, the Prime Minister said and added the quota of lady health workers for Balochistan had been doubled. The Prime Minister said a mother, child health-care programme had been initiated at a cost of Rs 20 billion, under which 20,000 community midwives would be recruited this year.

He said for the first time a new programme would be introduced for diagnosing diseases, which would specially help in preventing hepatitis and polio diseases. Besides, the Prime Minister said, a special programme for treatment and control of Hepatitis had been initiated, which was being supervised by him. He also appealed for co-operation from the local and international institutions in this regard.

He said a new Rs 5 billion school-feeding programme has been initiated in rural areas to provide food to boy and girl students in the primary schools. The Prime Minister said quota for women in government jobs has been doubled, while the legislation is underway for the protection of women and their rights.

He said government was focusing to make operational the Chinese Economic Zone, especially created for Chinese investors in Lahore. The Prime Minister said the restrictions on trade and student unions had been lifted and in this respect legislation work had been initiated. The measures were afoot to restore the government servants forced out of jobs on political grounds, he added.

He said the government had regularised the services of contract employees from Grade 1 to 15. The Prime Minister said the government believed in equal rights for minorities and would ensure protection of their religious sites as well as freedom of worship.

He said a bill had been tabled in the National Assembly for amendment in the PEMRA Ordinance to ensure freedom of media. The legislation work on the Freedom of Information Bill 2008 had been initiated, he added. The Prime Minister said a Journalist Victim Fund had been created to provide protection to journalists. Consultation process on Wage Board Award had started to support the working journalists, he added.

Copyright Associated Press of Pakistan, 2008

^^ Hope the new government does something, instead of just talking.

The economy has just nose-dived after the elections. Shameful that they're blaming the 'dictatorship'. How come the economy was going up during the dictatorship and went down once democracy came. I can't believe how can someone put the blame on someone just like that. Unbelievable.

Also, even if it's the dictatorship that's the cause (let's assme that), I thought that this new government came in to do something about it. Why the hell isn't anyhting happening except for finger-pointing? I can swear that 5 years from now they'd be saying the same exact thing 'pichli haqoomat ki ghalat policion ki wajah se.......'

The people of Pakistan voted for them. Now let them suffer. Let them suffer real good, so good that the coming 15 generations remember what PPP did to Pakistan. I bet you a million bucks in the next election they are going to vote for PML-N. After PML-N fails, they are going to vote for PPP again.

The party that led Pakistan through 8 years of solid economic growth is the "dictators" party so it will not have a majority in the NA. People of Pakistan deserve every bit of misery that they are getting thanks to their own stupidity.

Slightly outdated but a good assesment. Pakistan is ranked 93rd, India is ranked 115th, Bangladesh is ranked 149th and Sri Lanka is ranked 90th.

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Index of Economic Freedom - 2008

Pakistan's economy is 56.8 percent free, according to our 2008 assessment, which makes it the world's 93rd freest economy. Its overall score is 1.7 percentage points lower than last year, reflecting worsened scores in six of the 10 economic freedoms. Pakistan is ranked 16th out of 30 countries in the Asia–Pacific region, and its overall score is slightly below the regional average.

Pakistan scores moderately well in fiscal freedom, business freedom, and labor freedom, but its only exceptionally high score is for limited government size. The corporate tax rate is high, but tax revenue and government spending are low relative to GDP. Commercial registration and licensing are historically inefficient, but efforts to liberalize the business climate are producing results. The labor market is flexible, although firing procedures are costly.

Pakistan has weak trade freedom, investment freedom, financial freedom, property rights, and freedom from corruption. Imports are subject to a high average tariff rate and burdensome non-tariff barriers. The judicial system does not protect property rights effectively because of a serious case backlog, understaffed facilities, and poor security. Serious corruption taints the judiciary and civil service, making Pakistan one of the most corrupt nations rated by the Index. Pakistan's financial market, though advanced for the region, is constrained by regulation and bureaucracy.

Background:
Pakistani President Pervez Musharraf, who took power in a bloodless coup in 1999, has faced ongoing political unrest and terrorism, especially in provinces bordering Afghanistan. President Musharraf has pledged to hold elections as early as 2008. Despite the political risk, Pakistan's economy grew strongly last year on the back of strength in the country's manufacturing sector and a pickup in foreign direct investment. The government is continuing to privatize key industries. Yet the country remains poor, and political risk deters more foreign investment.

Business Freedom - 70.8%
The overall freedom to start, operate, and close a business is relatively well protected by Pakistan's regulatory environment. Starting a business takes an average of 24 days, compared to the world average of 43 days. Obtaining a business license takes less than the world average of 19 procedures and 234 days, but costs are high. Closing a business is relatively easy and straightforward.

Trade Freedom - 65.2%
Pakistan's weighted average tariff rate was 12.4 percent in 2005. Liberalization has progressed, but import bans and restrictions, import taxes, inconsistent standards administration, non-transparent government procurement, export subsidies, weak enforcement of intellectual property rights, and corruption add to the cost of trade. An additional 10 percentage points is deducted from Pakistan's trade freedom score to account for non-tariff barriers.

Fiscal Freedom - 79.1%
Pakistan has implemented some tax cuts. The top income tax rate was reduced to 25 percent. The top corporate tax rate is 37 percent. Other taxes include a value-added tax (VAT) and a property tax. In the most recent year, overall tax revenue as a percentage of GDP was 10 percent.

Freedom from Government - 90.1%
Total government expenditures, including consumption and transfer payments, are low. In the most recent year, government spending equaled 18.2 percent of GDP. Privatization, including the sales of two major telecommunications and electricity enterprises, has advanced in recent years.

Monetary Freedom - 72.2%
Inflation is relatively high, averaging 7.9 percent between 2004 and 2006. Relatively unstable prices explain most of the monetary freedom score. The government controls pharmaceutical and fuel prices, subsidizes agriculture, and influences prices through state-owned enterprises and utilities, including electricity and water. An additional 10 percentage points is deducted from Pakistan's monetary freedom score to account for policies that distort domestic prices.

Investment Freedom - 40%
Foreign capital is welcome. Foreign investors may own 100 percent of most businesses, except in arms and munitions, high explosives, currency and mint operations, radioactive substances, finance, and new non-industrial alcohol plants. Foreign ownership in agriculture is capped at 60 percent. Total foreign equity control is permitted in the services sector. The government requires a minimum initial investment in agriculture, infrastructure, and social services and maintains local content requirements for 16 items in the automobile and motorcycle industries. Deterrents include political violence, civil unrest, poor infrastructure, inconsistent and arbitrary regulation and enforcement, and a lack of coordination between the federal and regional governments. Restrictions on foreign exchange accounts include the need for government approval in some cases. Payments and transfers are subject to approval, quantitative limits, and other restrictions. Most capital transactions are not permitted or require government approval.

Financial Freedom - 30%
Pakistan was supposed to have converted to an Islamic (interest-free) financial system system by 2001, but the Supreme Court is still considering a final judgment. Five domestic banks account for over 80 percent of assets. The government has a majority stake in the largest bank and controls several specialized banks; the three state-owned banks are saddled by non-performing loans. The central bank must approve all new domestic and foreign bank branches. New foreign banks must establish subsidiaries under 49 percent control rather than opening branches. Insurance is underdeveloped, and a state-owned firm controls over three-quarters of the life insurance market. Foreign investors may not own more than 51 percent of a life or general insurance company. Domestic insurance companies must meet their reinsurance needs in Pakistan. There are three stock exchanges, with the largest market based in Karachi.

Property Rights - 30%
Pakistan's judiciary, by law separate from the executive, remains hampered by ineffective implementation of the laws, poor security for judges and witnesses, sentencing delays, a huge backlog of cases, and corruption. The government closed down several pirate optical disc factories and beefed up enforcement of intellectual property rights in 2006.

Freedom from Corruption - 22%
Corruption is perceived as pervasive. Pakistan ranks 142nd out of 163 countries in Transparency International's Corruption Perceptions Index for 2006. Corruption among executive and legislative branch officials is viewed as widespread.

Labor Freedom - 69.1%
Relatively flexible employment regulations could be further improved to enhance employment opportunities and productivity growth. The non-salary cost of employing a worker is low, but the difficulty of laying off a worker creates a risk aversion for companies that would otherwise hire more people and grow.

http://www.heritage.org/Index/country.cfm?id=Pakistan