Economy suffered Rs 69 bn loss in three days

[Torpedo]

Economy suffered Rs 69 bn loss in three days​

Monday, March 16, 2009
GDP growth, tax collection targets at stake

By Mehtab Haider

ISLAMABAD: Pakistan’s ailing economy suffered a colossal loss to the tune of Rs69 billion in just three days blockade and halting of all kinds of economic activities in the wake of ongoing long march that struck the country after breaking promises by the political elites, it is learnt.

According to initial estimates drawn by the authorities concerned and shared with The News on Sunday, the size of the overall economy touched Rs13,070 billion during the last financial year 2008-09 and if it was assumed that the agriculture sector did not affect owing to ongoing political turmoil then the non-agriculture size of the economy touched Rs10,456 billion.

The contribution of Punjab, Balochistan and NWFP in overall GDP stood at 78 percent, which showed that complete halting of economic activities resulted into a colossal loss of Rs23 billion on daily basis. If the losses suffered by Sindh are included, the overall losses turn out to be Rs29 billion per day.

The country is facing complete turmoil and movement was restricted for the last two days. This situation is going to prevail today (Monday) so the overall losses to the economy would touch Rs69 billion to Rs87 billion.

The loss of the economy, the sources said, also resulted into tax collection shortfall as FBR was eyeing to collect Rs116 billion during the ongoing month (March). The FBR is supposed to collect around Rs3.8 billion on daily basis for achieving its monthly target for March 2009. The three-day blockade will also result in losses of over Rs10 billion to the FBR in its effort to collect the due taxes.

When Adviser on Finance Shaukat Tarin was contacted for comments on Sunday, he said the Finance Ministry would come up with estimated losses to the economy owing to this turmoil. “We are requesting all political leaders to save the economy of the country,” he added.

He said he would assign competent persons to ascertain the facts in this regard, which would also be shared with the nation. However, the sources said the rigidity shown by the ruling elite for blocking the way of restoration of judges including Chief Justice Iftikhar Mohammad Chaudhry has virtually halted all economic activities, which were already suffering owing to the lingering economic crisis as well as severe loadshedding.

Exports, imports, tax collection and economic activities have been severely affected in the wake of ongoing protest mode prevailing upon the country, resulting into playing havoc with the economy of the country.

The businessmen are already facing the most difficult situation owing to global recession as well as domestic economic difficulties. The rates of utilities such as electricity and gas also touched new heights and now protesting mode has shattered the hopes for revival of the economic activities.

The government has impounded thousands of containers all over the country, virtually blocking supplies of goods from Karachi to all other parts of the country.

The government has made arrangements to seal major routes all over the country in effort to foil bid of the lawyers and opposition parties to stage sit-in at the Constitution Avenue of the federal capital on March 16. The administration has taken over containers, trucks and other vehicles into its control.

The revised GDP growth target of 2.5% as well as FBR’s tax collection target of Rs1,300 billion is at stake, putting the economic managers into difficult situation with regard to envisaged macroeconomic target with the IMF for fiscal 2008-09.

According to FBR high-ups, thousands of containers having goods of imports and exports are stuck up at Karachi port and there were no chances to make transportation arrangement because the government impounded all containers in order to seal all major cities of the country.

The sources said the tax collection has been affected in Karachi as well as Lahore, Faisalabad, Multan and other major cities of Punjab and one day loss could be at least more than Rs10 billion.

http://www.thenews.com.pk/top_story_detail.asp?Id=20944

Now, the amount is ~$ 1 bn. Was the long march worth of it?

 

[Awesome]

You can't put a dollar value on nation building.

Moreover these unlawful orders of the government caused these losses and the long march did not result into any massive rioting, tire burning, smashing restaurants, looting, nothing of that sort.

People just wanted to go and register a lawful protest.

The question should be, was Zardari worth it?

 

[Torpedo]

You can't put a dollar value on nation building.

Moreover these unlawful orders of the government caused these losses and the long march did not result into any massive rioting, tire burning, smashing restaurants, looting, nothing of that sort.

People just wanted to go and register a lawful protest.

The question should be, was Zardari worth it?

But is it a real 'Nation Building'?

Are you a hardcore fan of Nawaz Sharif? I am not.

The only thing here is Pakistan is shifting towards less evil option.

Also, you cannot always afford to live ideally. You have to watch your pocket. Don't you?

 

[Evil Flare]

atleast CJ Will save many billion $ from PPP Govt

 

[Jihad]

It was to be expected, these protests, marches, riots, or whatever you want to call them usually end up with alot of hype and violence and interference by the current government.
Like I said before, Pakistan doesn't need these type of protests right now, it needs to work on its economy, but I guess peace of mind will perhaps be restored now that these judges are back in place?
I'm impressed and glad that no public property has actually been destroyed, but the image these protestors put up is seen across the whole world, and i'm sitting infront of my couch watching TV and only one thing comes in my mind: You idiots.
Work for a better Pakistan, let's see how things unfold now after this march, but seriously, right now, we do not need anything like this, let our economy become a little more stable and let it grow and develop, we're only reducing the pace of economic growth by causing civil unrest and hysteria.

 

[Torpedo]

atleast CJ Will save many billion $ from PPP Govt

And how he is supposed to do that?

 

[afriend]

atleast CJ Will save many billion $ from PPP Govt

Well this is a laughable argument. However the loss can be considred reasonable if this leads to a postive future for pakistanis. If the truth have prevailed today.. if the foundation for a strong civilian political system have been laid today.. then 69 billion is a price worth paying..!!! And measuring the gains by mere monitory values is not what a proud citizen should do. At the same breath, political parties should understand and evalutate the econmic repurcussions of their protests and plan their protest accordingly. So that economy doesnt suffers and their voices are heard.

 

[Khajur]

And how he is supposed to do that?

Protests are essential part of any vibrant democracy.
U cant say there'll be no opposition since it hurts the economy.

 

[Awesome]

But is it a real 'Nation Building'?

Are you a hardcore fan of Nawaz Sharif? I am not.

The only thing here is Pakistan is shifting towards less evil option.

Also, you cannot always afford to live ideally. You have to watch your pocket. Don't you?

I don't get this. This is much bigger than Nawaz Sharif, or Iftikhar Chaudhary. This is about Pakistan and Pakistan. I don't have to be a Nawaz fan, though he did bring a big punch to the movement, the credit of this goes to the change in mindsets of Pakistanis, the realization that insaaf! Justice is our fundamental problem. Without justice people like Zardari Kuroh will keep on misusing their power. Now they know there is a court that will pronounce against them. There can't be a misuse of power anymore.

That is what has happened here. Not Nawaz Sharif. Please all of you, open your minds, the future of Pakistan depends on this!

 

[ajpirzada]

wat we achieved yesterday cannot be compared with anything. u r talkin about 69bn Rs. i would say that is nothing compared to wat we will gain in future.

 

[Bull]

I don't get this. This is much bigger than Nawaz Sharif, or Iftikhar Chaudhary. This is about Pakistan and Pakistan. I don't have to be a Nawaz fan, though he did bring a big punch to the movement, the credit of this goes to the change in mindsets of Pakistanis, the realization that insaaf! Justice is our fundamental problem. Without justice people like Zardari Kuroh will keep on misusing their power. Now they know there is a court that will pronounce against them. There can't be a misuse of power anymore.

That is what has happened here. Not Nawaz Sharif. Please all of you, open your minds, the future of Pakistan depends on this!

The problem is not about people but due to lack of belief in Institutions. Politicians have made a mockery of the judiciary, by removing and reinsating judges and thus dividing the judiciary on political lines. That shouldnt have been allowed in the first place. Did Mushraff start it?

 

[AgNoStiC MuSliM]

Absolutely - this movement had nothing to do with Nawaz.

CJ Chaudhry did in fact initially take his oath under gen. Musharraf, somethign that woudl not have happened had he been a Nawaz supporter.

He is supported by Pakistanis becasue he had come to represent an independent and active judiciary, especially with all the Suo Moto cases related to abuse of power and human rights violations that the CJ was taking up.

Whether or not he will be able to recreate, or be allowed to, that sense of an independent judiciary only time will tell.

Long term however, we need reform in the judicial appointment process to make it it more independent and with consensus from all political parties instead of just the ruling party.

 

[notorious_eagle]

The movement had nothing to do with Nawaz, absolutely correct but without his support this march would have never been successfull. He should be applauded for sticking to his principals and spearheading the cause to bring justice back to our land. I am glad this mess has been sorted out, but i really hope the government focuses on the economy now. We need to bring our economy out of this mess, relying on foriegn aid is just killing our country.

 

[Bane Blade]

Are you a hardcore fan of Nawaz Sharif? I am not.

I am sure you won't be a fan of Nawaz Sharif after all you are from India.

 

[Torpedo]

Protests are essential part of any vibrant democracy.
U cant say there'll be no opposition since it hurts the economy.

Sure there will be protests.

But the question is "Can Pakistan afford them right now?"