What's new

Pak teetering on the brink of complete economic breakdown: Finance Minister

Very irresponsible....and childish comments, i must say.
Why can't you think of taking away tax relief to all goods passing through Pakistan to Indian and Afghanistan?

Best way to improve economy is start charging 10K$ to every truck passing through Pakistan, en route Afghanistan and India.

1000trucks / month will generate 10 million, and per year it may reach 120million.

The issue is not how much is charged but how the money received is handled.

The issue in my opinion is not shortage of funds but the manner it is spent or accounted for.
 
One way to encourage investment is a setting up a panel of international economists to chalk out a viable economic strategy .....focus on the areas of core competence....and mark out industrial cities to the south of Pakistan mostly unaffected by violence and then have a strong amount of security ( armed forces or paramilitary) .....during Musharraf's time Pakistan held quite an impressive display at the world economic forum ....far better than what India could.....these efforts ought to re start.....and above all .....the people in charge should not be from the civilian polity .........
 
Pakistan is dealing a complete blow of confidence...failed gov, failed security, failed planning..EVen if Indian investment is to be opened it would become a huge challenge to provide security because it will be favourite targets of madrassa bad boys group..there is no shortage of money in pakistan..shortage is of honesty and integrity.

80Billion forigen investment has left the country just by the rumor of zardari comin to power..the best we can do to improve our forigen investment prospect is to cull zardari from power.

As far as Foreign investment is concerned, investors worry about only two things - money and risk involved. Corruption can be taken care of (as part of unaccounted investment / incidental spend) provided it pays them rich dividends. Do you think Indian politicians & bureocrats are clean? they are more corrupt than your Zardari.

Foreign investment is not coming in Pakistan because of security concerns only. Radical fundamentalists, frequently occuring bomb blasts, hatred towards foreigners, political unstability etc are what denying pakistan their growth potential.

Money attracts money dear, provided one can earn as well as spend it freely.
 
Sell rights to untapped resources - gas, minerals, coal etc to china, Iran and turkey.
I think pakistan needs these untapped resources for thier own power projects.When they complets these useful projects,then they were free to sell all these resources at higher prices.
 
I think pakistan needs these untapped resources for thier own power projects.When they complets these useful projects,then they were free to sell all these resources at higher prices.

Raw natural resources can only get a country so far.....besides south Asia compared to other regions is the most " valuable natural resource " deprived region on earth......no oil or critical resource....what we can instead capitalise on is the "Human Resource"....in the form of business skills, engineering talent , skilled work force....and this requires an enormous amount of initial investment in infrastructure.....which is only possible through western collaboration.....China might be an enormous help in this regard if the policy makers can get China to invest in the economy along with all the military help they provide.......
 
This must be a conspiracy by finance minister to derail the demo-cracy in Pakiastan . His excellency Mr. 10% has every right to claim his share of contracts/taxes /foreign aid his wife was martyred afterall . He spent a large portion of his life in Jail so he needs compensation for that as well . Sir Zardari we will again vote for u , u will tax us again and we will again vote for u there is no bound to our patience . We simply love u.
 
Raw natural resources can only get a country so far.....besides south Asia compared to other regions is the most " valuable natural resource " deprived region on earth......no oil or critical resource....what we can instead capitalise on is the "Human Resource"....in the form of business skills, engineering talent , skilled work force....and this requires an enormous amount of initial investment in infrastructure.....which is only possible through western collaboration.....China might be an enormous help in this regard if the policy makers can get China to invest in the economy along with all the military help they provide.......
thx bro for your useful post.Next time i think twice before posting something. Lol
 
BBC News - How to fix flood-hit Pakistan

Guest columnist Ahmed Rashid argues that Pakistan's unpopular civilian government should allow foreign technocrats to sort out the country's mess - or its troubles may only get even worse.

Pakistan is under siege - from flood waters that have inundated 23% of cultivable land and extremist Taliban who have killed over 120 people in the past week.

Meanwhile, there is intense political infighting, calls for martial law and an economic downturn that could last for years.

Some Pakistanis are also asking if the floods may just provide a wake-up call: to push the ruling elite to establish good governance, undertake real redevelopment and poverty alleviation, and ultimately strengthen democracy sufficiently to defeat Islamic extremism.

However, any such hope is countered by the real crux of the current crisis. There has been a complete collapse of trust and confidence in the government and the civil-military ruling elite by the people.

Aid fade

It would seem that years of mismanagement, corruption, bad governance and army rule, punctuated by weak elected governments, have finally taken their toll.

At every turn donor countries, charitable foundations, wealthy individuals or school children inside the country or abroad are refusing to give money to the Pakistani state to alleviate the suffering of nearly 20 million people affected by the floods.

At the international level, donor countries are refusing to commit money to the government, and are channelling their aid to Western and Pakistani non-governmental organisations (NGOs).

Less than 20% of the aid pledged so far will go through the government, according to Prime Minister Yousuf Raza Gilani.
Flood victims at a temporary shelter in Dadu on 6 September 2010 The world may have given up on Pakistan, but can it afford to?

Meanwhile, public fund raising by charities in the US and Europe is reported to be the lowest for any catastrophic act of nature in recent memory.

The UN appeal for $459m remains far from fulfilled - more than five weeks after the floods began.

The UN said on 2 September that international fund raising had ''almost stalled'' in the previous two weeks, when only $17m dribbled in to UN coffers.

It seems the world has also given up on Pakistan, or at least that its government cannot be trusted by anyone.

Yet, already a fight has broken out between the federal government and the four provinces as to who gets to spend the money.

Meanwhile, some opportunist political leaders are calling for martial law or a French revolution.

Since the floods began, there has been no genuine effort by President Asif Ali Zardari or PM Gilani to put together a truly transparent body that would receive and spend the money to the satisfaction of international donors and Pakistanis.

The central government, the provincial governments, the army and even the National Assembly have bizarrely set up separate flood relief funds. And few Pakistanis are contributing because nobody trusts any of them.

However, major help is on the way with international financial institutions putting together between $2bn and $3bn for rehabilitation and rebuilding the destroyed infrastructure.
Kleptomaniacs

If such funding is truly to arrive than it is time that Pakistan's kleptomaniac rulers restore some public trust.

The politicians need to agree to set up a Trust Fund, much like that which operates in Afghanistan to fund the government, army and police.
A tented relief camp for the flood victims in Pakistan, 5 September 2010 The floods have washed away 5,000 miles of road and rail and 1,000 bridges

Pakistan's Reconstruction Trust Fund could be run by a board that included the World Bank, other international lending agencies and independent and prominent Pakistani economists and social welfare figures with no ties to the government.

Pakistanis would still take all the major decisions, but those who did so would not be the cronies of the president, the PM or the opposition leaders.

Pakistan's finance bureaucracy and army would have seats at the table, but certainly no veto powers over how the money is spent.

Their job would be impartial implementation of recovery overseen by the Trust Fund.

Such a fund would not just monitor the cash, but help the government put together a non-political, neutral reconstruction effort.

It would also help plan long-term economic reforms, such as widening the tax base and insisting that landlords pay income tax.

The government has not tapped the large numbers of extremely competent Pakistani technocrats, NGO workers and economists.
Secession lesson

No doubt the army and politicians would reject such an idea, saying that this would spell the end of sovereignty of a nuclear power and be intolerable for an independent nation.

But the elite is already losing its sovereignty every day if it cannot put the country back together again and regain the trust of the people.

The sovereignty the government has lost in the floods is the biggest loss in the country's history bar one, when the ruling elite lost East Pakistan - now Bangladesh - in 1971.

That loss was also triggered by a national calamity when there was a typhoon in the eastern part of the country as it was then, and no relief response came from the West Pakistani elite.

The political infighting and threats will only get worse as the floods recede and haphazard reconstruction starts.

Reconstruction left to the government will be dominated by local interests of politicians and feudal lords rather than a common, rational plan.

Yet with 5,000 miles of road and rail and 1,000 bridges washed away, 7,000 schools and 400 health clinics destroyed, vast areas of the north still cut off, one fifth of agricultural land under water and the looming threat of epidemics spreading though the flood victims, a coherent reconstruction plan is desperately needed.

That needs greater trust between the government, the army and the people which is just not there.
 
This must be a conspiracy by finance minister to derail the demo-cracy in Pakiastan . His excellency Mr. 10% has every right to claim his share of contracts/taxes /foreign aid his wife was martyred afterall . He spent a large portion of his life in Jail so he needs compensation for that as well . Sir Zardari we will again vote for u , u will tax us again and we will again vote for u there is no bound to our patience . We simply love u.

Great other conspiracy...

Your government gonna VAT or GST from next month following the direction from IMF.
Your GOP has taken loan from IMF that to 11.3 billion USD out of which 8.7 billion is Already deliver to Pakistan .

Your provinces and the Trading Corporation had contributed heavily to the creation of about Rs400 billion of circular debt in commodity because of raising fears that this might lead to a crisis-like situation for banks because of flood-related defaults.

And you are seeing a conspiracy here....what yar...
 
same as before..... IMF or WORLD BANK.
I recommend a book...
'confessions of economic hitman'

Don't blame the IMF or the World Bank...It's like you get a loan from the Bank and than blame the Bank for not being able to pay off your debt.. people who are irresponsible are the ones who think all banks and financial institutions are evil.
 
Great other conspiracy...

Your government gonna VAT or GST from next month following the direction from IMF.
Your GOP has taken loan from IMF that to 11.3 billion USD out of which 8.7 billion is Already deliver to Pakistan .

Your provinces and the Trading Corporation had contributed heavily to the creation of about Rs400 billion of circular debt in commodity because of raising fears that this might lead to a crisis-like situation for banks because of flood-related defaults.

And you are seeing a conspiracy here....what yar...

There is something known as sarcasm. It was present in the post that you quoted. Unfortunately you didn't get it.
 
Don't blame the IMF or the World Bank...It's like you get a loan from the Bank and than blame the Bank for not being able to pay off your debt.. people who are irresponsible are the ones who think all banks and financial institutions are evil.
I have not blamed any one in my post but since brought up this issue!
I confess that i believe, it is only bank to be blamed when it put all its trust in corrupt people and start throwing loans after loans without accountability!
Even if you borrow for house construction, there is a structure of handling the capital transfer.
We are talking here billions.

don't you see no foreign state is willing to hand over single penny to Zardari regime but guess who is helping the same state with cash? IMF & WB! why?
 
We should outsource Pakistan government by pledging alligence to a constorium of care takers. Who will run Pakistan like a project for next 49 years. I nominate

- Turkey
- Malaysia
- Indonesia
- Iran
- China
 
Back
Top Bottom