Pakistan Diwaliya / Bankcrupt

LAHORE: A sharp fall of the rupee has played havoc with the economy, with foreign debt rising from Rs2,759 billion to Rs3,493 billion, size of the economy dropping below $150 billion and per capita income slipping to $780.

Economists have urged the government to realise the urgent need of addressing the factors that are putting pressure on the rupee and damaging the economy. They say Pakistan’s foreign debt at the end of the last fiscal year in June stood at $44.5 billion, which has increased in rupee terms by Rs743.25 billion as the currency plunged after July from Rs62 to a dollar to Rs78.50. The decline is still on and the government has not taken any concrete steps to stem the rot.

Gross domestic product, which was $160 billion on the basis of the rupee value of Rs62, has slipped below $150 billion. Earlier, Pakistan was moving steadily to join the club of Middle Income Group countries as its per capita income increased to $990 at the end of the last fiscal in June. However, the per capita income has now declined to a little over $780 after the sharp fall in rupee’s value.

The country is likely to remain among ‘low income’ states for a long time. This, the economists say, is in line with the purchasing power of the rupee which has declined considerably during the past six months.

They say the government would have to revisit the poverty profile, which has deteriorated in line with the decline in the purchasing power of the country. Some economists state that poverty must have increased by 10 per cent to above 30 per cent based on the soaring inflation.

They say Pakistan had a better Gini Coefficient than India till the 1990s. Now Pakistan is classified among countries with Gini Coefficient ranging from 0.30 to 0.34 depicting huge inequality in society. India’s Gini Coefficient ranges from 0.35 to 0.39. (Gini Coefficient of zero indicates complete inequality and one depicts complete equality).

Constant increase in imports after over 20 per cent decline in the rupee is a dilemma which has surprised most economists who say Pakistan is perhaps the second country after the US which has seen its trade deficit widen irrespective of the value of the currency at that time. The US, however, bears a huge trade deficit because its foreign exchange inflows are three times its trade gap and it ends up with a huge current account balance.

Pakistan’s foreign exchange reserves are depleting and except for workers’ remittances from abroad other inflows are too low to cover its huge trade deficit.

Economic experts point out that every country in the world devises a trade policy which benefits the local industry. The US has average import tariff of less than five per cent but its import duties on textile products from Asian economies range from 11 to 25 per cent. This has been done to protect the labour-intensive clothing industry.

The economists say import duties on textile products from high-cost Western European countries are either zero or a little higher according to the prices of apparel which does not hurt their high value-added clothing industry.

The trade regime in Pakistan is operated in such a way which encourages imports and discourages local industry. Pakistan is the only major cotton-producing and textile-based economy in Asia where imported clothing and fabrics dominate local markets because of a flawed import regime. They point out that smuggling is another major menace which could only be controlled if those monitoring border checkposts are made fully accountable.

jamhooriyat zindabad... pakistani nation is the first in the world to hit itself in the foot, then cry for its betterment.

Pakistan Allah na kare ke diwaliya ho.Agarche ke humari ghaltiah ba hesiat e Qaom in Choroh Ko chunne ki aur inn kosupport karnee ki ,humari iss halat ka paich khema hain.Aur sone par Suhaga humare Zehni Aur Ikhlaqi taor se Diwaliya so called leaders,jo apni poori koshish(Danista bi aur Haqal ki kammi ki waja se na danista bi) kar rahe hain ke Pakistan ki Bunyadoh me paani deh.Agar hume bahesiat e Qaom Pakistan ko bachana he tho m il kar aik Qaom ki tarrah inn sab loaoh ko utta kar bahi Pehnkna ho ga.Doosra kohi rasta baqi nahih bacha.

what you sow shall you reap? Take a look at the pictures of leaders of Pakistan now, and you will see all
the meanest and cunning faces(smiles) of the untoucables of Pakistan.

God Bless my Pakistan!!

ALLAH pakistan ki hafazat kara ore hum ko ore humara hukmaranoo ko hedaith da.ku ka pakistan ha to hum haan

For that & achieving our other goals to become a sovereign,self sufficient & a independent Islamic State we have to innitiate as a nation.We have to get rid of all those plundered this country,responsible for bringing us to the brink of this financial & social disaster.Inshah Allah when we are ready to correct ourselves,act collectively as a nation & preffer national interest over our own benefits,interests & political affiliations.As well as we have to get rid of all these corrupt & morally bankkrupt socalled leaders.For this we should not wait or look forward to the "MESSIAHS" to come.We have to act ourselves.

	chahsanashraf wrote:
	ALLAH pakistan ki hafazat kara ore hum ko ore humara hukmaranoo ko hedaith da.ku ka pakistan ha to hum haan

Aameen!

jnab iss waqt ye surat e haal Pakistan main hi nahi balkay puri dunya main hai daulat chand hathon main markooz ho chuki hai aur iss maslay ka hal sirf aur sirf Socialist inqlaab hai.

agay 2 rastay hain
1) brbariyat
2) socialist inqlab

Whole Western Economics system is Collapsing . They are only dominating with there technical Know-How and Structure. We must find our own way of Social and Welfare Economics under the Great Islamic Principles . Meanwhile we must establish our Technical Know-How and build an Organised Structure ........

Many will realise why "RIBAH" (interest) is forbidden in Islam.All kind of speculations lead towards economic disasters.The best earning of a humanbeing is in which he is physically involved.We Pakistanis are also neglected by Allah because all kind of "HARRAMS"including "RIBAH"(SOOD) become routine in our lives.

ok i want to watch tv..

do u guys tink of worst situation rather den now...da one v r going thru wid...i dont tink...and i tink its da extreme....nd lets c da result

My friends it is a matter of time, Pakistan will recover from the worst economy situation created by our LEADERS and greedy AWAM. Let US economey settledown and watch how quckly Pakistan will recover back to normal.

don't be worried about that kind of things, our country had been in worst condition than now in first decade of its creation and again after 1971, but we as a nation servived.
we need to know it all is because of our wrong policies and because of our media, they got only one job, to show the bomb blasts and weaker points of our country. they never encouraged investers. our media is going to wrong way and must be stoped.

May God help us
? Sad

Otherwise I suspect we may not be able to stand well but it will eat at least one generation.

By the way

Rulers are according to the people's deeds!!!! isn't it?

We have to start it from somewhere.As a Muslims it is our Staunch belief that only Allah is incharge of everything & that "MAYUSI GUNAH/KUFAR HE" we have to be optimist.But in the meantime all these socaalled polititions should live on the Masses level & start from theirselves.From their standard of living,exravagant lavishing life style & their spending of funds on tours/trip one is geting a negative impression.I pray to Allah to destroy all those who try to destroy us.

Our nation can only be saved if we give up all the evils and be better muslims...

_________________
SBA rox - yeah its me...

well we should learn the lessons. Pakistan's economy can't run based on aids from foreign.

jamhooriyat zindabad... pakistani nation is the first in the world to hit itself in the foot, then cry for its betterment.

It is going to be very serious if that happens. by the looks of it we havnt seen the last of it. May Allah help us in this difficult time.

pls send me link for t20 canada final.
thanks.

fareed.

We as a nation should think how we can improve our economy. All the leaders shoould cut their expenditure and army of all ministers, advisors would be kept minimum. In the current Govt we have so many ministers and for them Govt is still thinking to form new ministeries. It is a shame.

Waseem