Pakistan Economy revisited from past. Mush vs Zardari

[somebozo]

Under Mushraff Era:
Saudi crown prince endorses large investment in Pakistan

BY M. AFTAB

ISLAMABAD — Saudi Arabia will encourage large investment in diversified sectors of Pakistan because of the close relations between the two countries, and good business results, Saudi Crown Prince Sultan bin Abdulaziz Al Saud has assured Islamabad.

The Crown Prince, during his talks in Islamabad with President Pervez Musharraf and Prime Minister Shaukat Aziz appreciated the economic progress made by Pakistan. He said "Pakistan policies have generated interest among the Saudi investors, and now more Saudi companies are interested in starting joint ventures with Pakistani companies." This was officially stated at the end of the two-day visit to Islamabad. Crown Prince Sultan bin Abdul aziz Al Saud, in order to promote Saudi investment and business relations with Pakistan, invited Prime Minister Aziz to visit Saudi Arabia to meet the Saudi investors."

The Crown Prince suggested that Saudi investors "should take advantage of Pakistan’s growing economy." He said, they can particularly benefit by investing in real estate, IT, telecom, tourism, banking agriculture, and the services sector," it was officially stated.

Prince Waleed bin Talal bin Abdulaziz Al-Saud followed Crown Prince Sultan, two days later, and discussed in Islamabad, the details of economic cooperation. During the talks, Prime Minister Shaukat Aziz also informed Crown Prince Sultan, that Pakistan will build a $2 billion oil refinery at Khalifa point, in Hub, on Mekran Coast, close to Gulf and the Straits of Hurmuz.

He invited Saudi investment in the refinery which will go on stream by 2010. It will have a 13 million tonnes annual capacity to refine oil into various products. All the Pakistani oil refineries put together, so for, have a refining capacity of just 12.8 million tonnes a year. Pakistan will award contract of the project through international bidding. Pakistan’s current annual consumption of oil products is 16 million tonnes — 82 per cent of which are imported.

Pakistan government and senior Saudi diplomats attached a high degree of significance to the talks between the Crown Prince and the top Pakistani leadership in the fields of investment, trade, defence, manpower, foreign affairs, higher and specialised education, technical and scientific training, and fight against terrorism. Saudi Amassador Ali S. Awadh Asseri, underlined the significance of these talks pointing out that these followed within ten weeks of February 1-2 visit to this country by the Custodian of Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud. "The short span of time between these two visits reflects the significance of the deep rooted relationship between Saudi Arabia and Pakistan," the Ambassador pointed out. " These relations are marked by a concordance of views regarding the problems confronting the world, and more particularly the Muslim Ummah, he said.

There is a marked increase in trade, business and investment activity by Saudi businessmen activities, in recent months. Consequent to the signing of five Memoranda of Understanding (MOUs) during King Abdullah’s visit in February this year, there is a greater level of interactive cooperation between various organisations and entrepreneurs of the two countries that has generated a forward momentum. Other, new projects are also being considered for joint collaboration.

The recent foundation laying of Al-Tuwairqi Steel Mills (TSM) by President Musharraf at Karachi marks "the phenomenal birth of Saudi private sector investment in Pakistan. This $ 130 million project will be an economic booster providing job opportunities to thousands in Pakistan.

Dr. Hilal Hussain, Chairman of Saudi Arabia’s biggest steel maker— Al Tuwairiqi Group (ATG)— alongwith a Russian, and a Pakistani company, have also purchased 75 per cent shares in Pakistani Steel, the country’s biggest and the only integrated steel mill located at Karachi, for $ 362 million.

ATG’s stake in the purchase is 40 per cent. Earlier in November, 2005, Saudi Arabia’s Al-Jomaih Group in partnership, with Hassan Associates-Premium Mercantile, purchased 73 per cent shares and management control of the giant Karachi Electric Supply Company (KESC) for $ 340 million. The consortium has announced plans to invest an additional $500 million in KESC over the next five years.

Saudi Arabia and Pakistan believe that in addition to their special economic and political relations, being members of WTO, they have greater opportunities to come closer in business and economic relations. Saudi laws and regulations are at par with international standards and have increased the confidence of foreign businessmen. Banking, insurance and the telecom sectors are open for foreign investment. All these opportunities are equally available to Pakistani businessmen. The two governments are now urging Pakistani businessmen and investors to visit their counterparts in Saudi Arabia to benefit by launching individual or joint ventures.

Multi-billionaire Prince Waleed, the internationally known Saudi investor, also this week, had talks in Islamabad with President Pervez Musharraf and Prime Minister Shaukat Aziz. President Musharrah decorated Prince Waleed with one of the country’s highest awards —Hilal-i-Pakistan, in recognition of his "deep friendship and all round support to Pakistan and his commitment to the causes of the Muslim ‘Ummah’."

Prime Minister Aziz informed Prince Waleed, "given Pakistan’s strategic location, the fast growth and investment friendly policies, there is a tremendous potential for greater economic cooperation between the two countries in several areas like trade, investment, culture and tourism."

Prince Waleed discussed with Aziz his "plans to make further investments in Pakistan. He said, "Pakistan is a very special friends." He said, his company will be investing in two hotels in Lahore and Islamabad. He also said, Saudi Arabia will arrange business conferences in Lahore, Karachi and Islamabad. The delegations of the two countries will exchange visits ahead of the conferences. He invited Prime Minister Aziz to visit Saudi Arabia to meet the Saudi investors.

Prince Waleed said," Saudi investors should take advantage of Pakistan’s growing economy, particularly by investing in real estate, IT, telecom, tourism, banking, agriculture and services sectors. He said, "inspired by the investment–friendly policies of Pakistan a number of Saudi investors are looking for avenues to start joint ventures with Pakistani companies."

A Saudi Exhibition will be arranged in major Pakistani cities, including Karachi, Lahore and Islamabad in November this year to expand business cooperation. Cooperation in several other fields, too, is expanding. In his talks with top Pakistani leadership and ministers, the Crown Prince reviewed implementation and actual progress on five agreements that had been signed during King Abdullah’s February visit to Pakistan. The five pacts are: Agreement on avoidance of double taxation between Saudi Arabia and Pakistan to further promote business and economic ties. Agreement on Technical Cooperation. Agreement on cooperation in vocational training, including higher education. Vocational training and education in the field of science and technology. And Agreement on Political Consultations between the Foreign Ministries of Saudi Arabi and Pakistan.

Under Zardari Era:

Pakistani minister to hold key talks with Saudi officials

By AZHAR MASOOD | ARAB NEWS
Published: Apr 23, 2011 19:41 Updated: Apr 23, 2011 19:41

ISLAMABAD: Pakistan’s Minister of State for Foreign Affairs Hina Rabbani Khar will arrive in the Kingdom on Sunday for a two-day visit during which she will hold talks with her Saudi counterpart and senior government officials.

Sources at Pakistan’s Foreign Office said Khar’s visit to the Kingdom is very important and that she is scheduled to visit Riyadh and Jeddah.

They added that Khar will not only seek Saudi investment in Pakistan but also ask the Saudi leadership for assistance for Pakistan’s National Budget 2011-2012.

The visit will provide a useful opportunity to review bilateral relations and exchange views on developments in the region.

Pakistan and Saudi Arabia enjoy close relations that are based on common values of faith, traditions and interests. The people of Pakistan hold the Saudi leadership in high esteem. The Kingdom last year was among the first countries to provide relief to flood-affected areas.

The presence of around 1.5 million Pakistani expatriates in Saudi Arabia is making a valuable contribution to the Kingdom’s development and prosperity.

The planned meeting will further strengthen bonds of friendship and brotherhood.

Federal Minister for Information and Broadcasting Firdous Aashiq Awan was to visit the Kingdom recently but was forced to postpone the trip due to domestic political problems and ongoing National Assembly sessions.

© 2010 Arab News
Conclusion:It was investments back in the Mushraff era and the typical beghairat begging bowl in Zardari era.
Nobody trusts Pakistani corrupt fake pro-US democracy!

 

[Karachiite]

Majority wanted democracy and they got democracy so now enjoy it. Musharraf in many ways can be compared to Ayub Khan. Both rapidly developed their country economically. Both were Army Generals and both faced the same fate. Both had to resign and we all know what happened to the country after they resigned.

Democracy is not for Pakistan. Our politics is dominated by feudals and american boot lickers. What we need is an autocratic style of a establishment like South Korea. South Korea was one of the poorest and backward countries but now it is a developed and rich country thanks to autocracy. Not to mention South Korea's economy was run by American aid. When General Park Chung-hee came into power even North Korea was richer then South Korea. But thanks to his economic reforms South Korea is now an economic powerhouse and a developed country.

 

[muse]

But autocracy is not enough - what kind of autocracy? We have tried the military version, it's unsatisfactory, all it does is hold the feudal in reserve because of the realization that they are need to get the consent of the people --so what kind of autocracy? Obviously it cannot be these 8 and 10 year periods


And really what are you asking for - are you asking for autocracy or a political party that understand the centrality of economic growth, of modern scientific education, of "progress", of equality before the law, of equality of gender, of opportunity?

In other words, can a democracy that is focused as above suffice instead of a autocracy

 

[farhan_9909]

I miss musharaf

I think if we compare Musharaf time with zardari era

i will call it like comparing a life in abottabad(in summer with good weather) against life in Sibbi(balochistan also ranked in top 3 hottest city of the world)

In musharaf time Pak economy reached 8.4% in 2005 and china said the we have got a new challenger.india economic growth rate was below Pakistan that time

China has a new growth challenger, Pakistan

after the bloody earth quake and rise in blast and terrorism he still manage to have 5-7% economic growth till 2007

imagine if we had 8.4% growth till now.so now we would be discussing a budget with GDP nominal around 250bn USD. or evenn more than this

 

[ambivalence]

you expected anything better from mr.10 percent?

 

[DelhiDareDevil]

This doesnt tell the full story, it was Musharaf who breeded the terrorist in Pakistan to fight India Kashmir. And it is his legacy that is badly affecting Zadari government term right now.

In that case Musharaf did more bad then good in retrospect. As the work of him is starting to show now.

 

[Amalek]

Are Autocracy and Parliamentary democracy the only two options? Maybe there can be a third or fourth option.

Look at Switzerland's model of Direct Democracy.

Switzerland features a system of government not seen in any other nation: direct representation, sometimes called half-direct democracy

The politics of Switzerland take place in the framework of a multi-party federal parliamentary democratic republic, whereby the Federal Council of Switzerland is the head of government. Executive power is exercised by the government and the federal administration and is not concentrated in any one person. Federal legislative power is vested in both the government and the two chambers of the Federal Assembly of Switzerland. The judiciary is independent of the executive and the legislature. For any change in the constitution, a referendum is mandatory; for any change in a law, a referendum can be requested. Through referenda, citizens may challenge any law voted by federal parliament and through initiatives introduce amendments to the federal constitution, making Switzerland the closest state in the world to a direct democracy.

I also like Switzerland because of its liberal gun laws. There is no need of a volunteer standing army. Every male Swiss citizen is obligated to serve 2 years in the military after they reach the age of 18. After the mandatory 2 years service, people go back to college to work in the economy... They take their guns with them. This has been going on for atleast 4 generations now... In a typical home, you will see assault rifles belonging to every generation, from grandfather's WW II-era issue rifle, to son's latest generation assault rifles.

Every year, there are gun festivals. Everyone participates. The government provides bullets for free... Even the President of Switzerland attends openly, without security guards, and surrounded by swarms of armed citizens...

The place of my dreams... Switzerland...

The greatest shooting festival in the world for youngsters takes place every year in Zurich, Switzerland. Imagine thousands of boys and girls shooting military service rifle over three days amid an enormous fair with ferris wheels and wild rides of all kinds. You’re at the Knabenschiessen (boys’ shooting contest).

Held since the year 1657, the competition traditionally has been both a sport and a way of encouraging marksmanship in a country where every male serves in the militia army. Today, girls compete along side the boys. In fact, girls are now winning the competition.

That rifle is the SIG Strumgeweher (assault rifle) model 1990 (Stgw 90), a selective fire, 5.6 mm rifle with folding skeleton stock, bayonet lug, bipod, and grenade launcher. The Stgw 90 is a real assault rifle in that it is fully automatic, although that feature is disabled during the competition. Every Swiss man, on reaching age 20, is issued one to keep at home. Imagine all those teenagers firing this real assault rifle while their moms and dads look on with approval, anxiously awaiting the scores.

 

[Last Hope]

[ITS LONG, BUT ITS WORTH READING]​

During Musharaf era

• Pakistan’s economy grew by 100% — to become $ 160 billion
• Revenue grew by 100% — to become $ 11.4 billion
• Per Capita income grew by 100% — to become $ 925
• Foreign Reserves grew by 500% — to become $ 17 billion
• Exports grew by 100% — to become $ 18.5 billion
• Textile exports grew by 100% — to become $ 11.2 billion
• Karachi Stock Exchange grew by 500% — to become $ 75 billion
• Foreign Direct Investment grew by 500% — to become $ 8.4 billion
• Annual Debt servicing decreased by 35% — to become 26%
• Poverty decreased by 10% — to become 24%
• Literacy ratio grew by 10% — to become 54%
• Public development Funds grew by 100% — to become Rs 520 billion

In 2001, according to a survey conducted by Transparency International, Pakistan was ranked as the world's 11th most corrupt nation. However, by 2002 Pakistan's rating had improved 13 places within the year, to be ranked 24th. By 2007, Pakistan was ranked 138th out of 179 countries, placing it as the 41st most corrupt country in 2007. Overall, under Musharraf's regime, Pakistan's rating improved by 30 places.

As President, General Musharraf had promoted Dr. Abdul Qadeer Khan as his Science Advisor. One of the most widely-reported controversies during Musharraf's administration arose as a consequence of the disclosure of nuclear proliferation by Dr. Khan, a national hero known as the father of Pakistan's nuclear program.

Musharraf was eager for Pakistan to lead the way in the space race. Musharraf unfroze Pakistan's space program which was last frozen in 1996. In 1999, when Dr. A. Q. Khan met with him, he quickly authorized SUPARCO to develop its first domestically-built satellite. Musharraf also established a separated fund for SUPARCO to develop its high-powered HRLV, SLV, PSLV projects. All these projects are rumored to launch in 2012, but SUPARCO has not confirmed. In 2005, President Musharraf outlined his vision for SUPARCO by laying down a clearly defined agenda for the national space agency to pursue and deliver in minimum time. Musharraf had authorized renewed research and development on an indigenous launch capability that would be able to put into orbit a domestically built satellite, Paksat-1R

About ZARDARI:

His political career has been mired by corruption allegations, for which he was in prison from 1990–1993 and 1996-2004. He became widely known as "Mr. 10 Percent" during the premiership of Benazir Bhutto because of his alleged role in obtaining kickbacks as an intermediary in government deals. As President, his attempt to prevent the reinstatement of judges failed after massive protests led by Nawaz Sharif, his chief political rival. He suffered further political embarrassment for flirting with Sarah Palin and for going to Europe a few days after the 2010 Pakistan floods.

In 2005, a Pakistani daily reported he is the second richest man in Pakistan with an estimated net worth of US$1.8 billionOf which USD $1.5 billion was taken from Pakistan's government account.

So concluding, Musharraf took Pakistan where it stood years ago. And Zardari dropped Pakistan from its toppest era ever, to its worst stages. So decide between yourself.

 

[Patriot]

Musharraf was good but he made a mistake: I.e trying to become a democrat.He should have taken over the control of waderas and other politicians properties and hang corrupted politicians etc before 9/11 after 9/11 it would not have been possible for obvious reason .Unfortunately he became buddy-buddy with them hence his downfall.We need an autocratic regime that can use stick when required to remove corruption and someone who can perform land reforms.

 

[MilSpec]

Musharraf was good but he made a mistake: I.e trying to become a democrat.He should have taken over the control of waderas and other politicians properties and hang corrupted politicians etc before 9/11 after 9/11 it would not have been possible for obvious reason .Unfortunately he became buddy-buddy with them hence his downfall.We need an autocratic regime that can use stick when required to remove corruption and someone who can perform land reforms.

are you sure about this sir? ...and then you complain of talllllliban

 

[RazorMC]

If you have honest, hard-working, capable and decdicated people within the administration then the type of government becomes irrelevant.

 

[Last Hope]

Can someone kindly post the ratios of Mushi vs Gadari in the following:

• Defence Budget
• Development Budget (heard it was cut)
• Education Budget
• GDP

 

[ramu]

Pakistan’s economy grew by 100% — to become $ 160 billion
Revenue grew by 100% — to become $ 11.4 billion
Per Capita income grew by 100% — to become $ 925
Foreign Reserves grew by 500% — to become $ 17 billion
Exports grew by 100% — to become $ 18.5 billion
Textile exports grew by 100% — to become $ 11.2 billion
Karachi Stock Exchange grew by 500% — to become $ 75 billion
Foreign Direct Investment grew by 500% — to become $ 8.4 billion
Annual Debt servicing decreased by 35% — to become 26%
Poverty decreased by 10% — to become 24%
Literacy ratio grew by 10% — to become 54%
Public development Funds grew by 100% — to become Rs 520 billion

Sorry ... The above is doctored for sounding good.

Growth is measured after accounting inflation and in the above figures, it is absolute values that is considered.

 

[SMC]

^ that's an argument thrown by bharatis previously and it's always a failure. You can take the figures adjusted for inflation as well. It's the same story.

Btw, does the poverty figure need to be adjusted for inflation?

 

[SMC]

Btw many of those figures are lower than they should be. For instance, GDP grew by more like 2.5x, same with revenue, and exports.