Pakistan: poor economy, rich country

[Last Hope]

It was January 2008, a relatively cold morning in Dubai. I was walking on Shaikh Zayed Road after parking my car about 300 meters from the meeting point with my client. I stopped suddenly before Crown Plaza upon hearing a Pakistani labourer arguing with a guy, claiming that UAE was not a rich country.

I went up to the gentleman and said “Khan Sahab are you crazy? You are standing on Shaikh Zayed Road, the heart of Dubai and you are saying that this country is not rich?”

He smiled and responded with a statement that I can never forget. He asked me to ignore all the big buildings, the infrastructure and the trade and then see what the country really had to offer.

These days I have been reading articles on the forthcoming budget and Pakistan’s economy. Being an analyst I am also involved in debates on VAT, capital gain tax and other technical issues. But I am still intrigued by Khan Sahab’s statement, and for the sake of analysis there is no harm in taking a look at where Pakistan stands.

The country has the second largest salt mine in the world, fifth largest gold mine, seventh largest copper mine, fifth largest coal reserves, seventh largest wheat and rice production capacity (can be enhanced to be the largest), is eighth in the rankings of fresh water availability with 2,053 cubic meters of water per person in 1995.

I must stop the count here for I already feel ashamed.

Khan Sahab you were right. Dubai is not a rich country. Dubai is actually a rich economy. Pakistan on the other hand is among the richest countries in the world, but also suffers from a poor economy.

It is quite amazing that the country that is chasing the realization of coalition support funds of 349 million dollars from the USA also happens to possess 185 billion tonnes of Thar coal which is worth an estimated 25 trillion dollars.

The country that faces a severe energy crisis has the potential to generate power supply for the next 100 years by utilizing the same coal reserves.

This coal utilization can save four billion dollars by reducing oil import costs. Dr Murtuza Mughal of Economic Watch stated that coal power generation can cost Pakistan Rs 5.67 per unit for power generation while IPPs cost Rs9.27 for the same. Other than coal, Pakistan is also rich in wind and bio resources of energy.

The point is simply to understand that the way our finance ministers portray the situation does not represent our true economic potential. It is really a shame that we declare it our success and best planning to successfully acquire aid packages from IMF, World Bank or the USA on time.

It is really worrying to think that the financial success of the government in our country is on the basis of financial arrangements rather than economic management.

Our governments feel happy to appoint IMF, World Bank or investment banking professionals as economic chiefs of the country. They either simply ignore the important economists for these positions, or they are just interested in short term fiscal management.

It is high time that our focus on economic planning and budgets to shifted towards clear cut economic goals for developing an industrial base in the country.

We need to come up with policies that ensure a culture of entrepreneurship in the country. Income support programmes cannot serve the objective of economic freedom. It is actually the facilitation of doing business and converting ideas into returns that can change the economic outlook of Pakistan.

We sit over a resource bank of trillions of dollars while we chase millions to survive. This myth of the poor economy of the richest country has to end.

Our prime issues are not VAT, capital gain tax etcetera. The biggest issue is the under utilization of the massive resources available in this land, where our federal budgets has been silent for years. This issue is directly related to poverty reduction as well as developing confidence in the people of Pakistan and about their future.

We need to see beyond fiscal management and look towards true economic management of our country.

Saqib Omer Saeed is a Financial/Business Researcher Analyst and adjunct faculty for Investments and Finance in CBM, SZABIST, BIZTEK & University of Karachi and blogs at www.bizomer.com

Pakistan: poor economy, rich country – The Express Tribune Blog

 

[Last Hope]

Pakistan can also be a rich economy, but over decades.
The problems that are acting as a barrier are:

1) Political corruption
2) Public coruption
3) 'unawared'/'misguided'/'mislead' youth

The first problem can be overcome by improving second and third scenario. As the public (and the 'to-be'' public) is political and literal awared, they would fight against all odds and would automatically help in improving Political situiation.

We should, after the political problems are neutralised, develop the mines, but not on a accelerating rate, as it would drain the country and would cause dilemma how to use the money, as we have never handled trillions.

'Slow and steady, wins the race'. We can start on a small pace, and develop steadily and uniformly.

Pakistan deserves being the Top economy as it has always stood against the ones who hate Pakistan and own one of the best Army. We already have got Defence systems developing at the highiest rate, and thus, this proves the fact that we are capable to be economicaly developing, with highiest rate.

I can say, that we all are waiting for Pakistan's economy to be better, but it is us, on the frontline, to battle against the 'traitors'. Mot of us dont know this. Country is dependend on us! We must take a step today, to achieve success tomorrow!


(Correct if I am wrong anywhere above, these all are my personal ideas, that I have analysed lately)

Regards,
Last Hope (For Nation)

 

[flameboard]

Don't feel ashamed feel that your country can do better, and do whatever you can however little to keep things the way you like them for example not polluting. Changing how we as Pakistanis identify ourselves will change and fix this country.

 

[Last Hope]

Don't feel ashamed feel that your country can do better, and do whatever you can however little to keep things the way you like them for example not polluting. Changing how we as Pakistanis identify ourselves will change and fix this country.

I am not ashamed, but proud to be one of the most Hospital people! (Pakistani)

Lets not derail, but have a healthy discussion

 

[DESERT FIGHTER]

Thts why id join politics instead of army(my parents nd my first choice)..........if we the youth wont come forward to clean this mess ...who would?

 

[Last Hope]

Thts why id join politics instead of army(my parents nd my first choice)..........if we the youth wont come forward to clean this mess ...who would?

Quite agreed. I'd like to serve 'Nation' not 'Country'
But, without entering Politics. I would do that with NGOs and awareness campaigns (as it is In my mind). Let's see, Allah has planned it, and no wonder that he is the best planners of all!

 

[VelocuR]

It is always my dream Pakistan should be a very rich country with advanced research, intelligents, and educations, only Muslim nuclear-armed country in the world . Just like Japan.

It is a lie.

 

[GLOBAL HAWK]

I am not ashamed, but proud to be one of the most Hospital people! (Pakistani)

Lets not derail, but have a healthy discussion

u mean hospitable or hostile ???

I wish to visit pakistan someday, someday looks like a distant day
But i will visit pakistan before i lay down for the last time

 

[Fasih Khan]

u mean hospitable or hostile ???

I wish to visit pakistan someday, someday looks like a distant day
But i will visit pakistan before i lay down for the last time

Awww You're Ambitious

 

[Last Hope]

It is always my dream Pakistan should be a very rich country with advanced research, intelligents, and educations, only Muslim nuclear-armed country in the world . Just like Japan.

It is a lie.

It will be true Inshallah.
Lets not forget that thest dimonds take billions of years to form

And, as I tell others,
Think Positive,
Act Positive,
Be Positive,

You can change the whole world
Lets not lose hope, and work together for the pakistan 50 Lac lives were shattered for.

 

[naveed qaiser]

This country’s economy needs a genuine boost. RGST is crucial at this point to push the fragile economy and for the support of millions flood victim staying in open sky and resisting against the inclemency weather. It is sad that we still want to play power poker on such crucial national issues. It is sad how we are defeating our national interest by playing partisan. The issue of reformed general sales tax (RGST) is critical to our economic revival and simultaneously the government should be able to work out the details of a growth stimulus. PML-N is not naïve in this country and it does not bode well to a second major party to play politics of interests. There are several examples across the world where political parties stand unite whenever there is question of national interest. We must learn a lesson from other countries.