Pak GDP growth < 1%

[Cheetah786]

1 or 2% hardly makes a difference for a small economy.
Pak economy is between 100-200bn$. 1% of which is 1 or 2bn$. Hardly significant

Now American economy is 10trillion$, 1% growth means 100bn$.

Musharraf couldn't have done much in these turbulent times IMHO>

from out side it does looks that Pakistans economy is $200billion and not much more in reality our economy is much bigger then that but remember only 10% or less of the public in Pakistan pays any income tax.
Most products produced in Pakistan are sold under the table to avoid paying taxes agriculture part of our economy is totally tax free transportation mostly cash deals
I can go on and on the number of sectors that pay no tax to the government is much bigger then admitted reason simple Rich are to powerful they get away with everything and most politicians are landlords and industrialist themselves so who is going to collect from them.

 

[kenchabhai]

from out side it does looks that Pakistans economy is $200billion and not much more in reality our economy is much bigger then that but remember only 10% or less of the public in Pakistan pays any income tax.
Most products produced in Pakistan are sold under the table to avoid paying taxes agriculture part of our economy is totally tax free transportation mostly cash deals
I can go on and on the number of sectors that pay no tax to the government is much bigger then admitted reason simple Rich are to powerful they get away with everything and most politicians are landlords and industrialist themselves so who is going to collect from them.

This black money will only fill the coffers of individuals, so for all practical purposes this "underground economy" figures are irrelevant but they can be used to show that rich in Pakistan are richer.

PS: Indians have 1.4-1.8 trillion dollars stashed in swiss banks, this is more than half of the funds in swiss banks.

 

[Zovc]

from out side it does looks that Pakistans economy is $200billion and not much more in reality our economy is much bigger then that but remember only 10% or less of the public in Pakistan pays any income tax.
Most products produced in Pakistan are sold under the table to avoid paying taxes agriculture part of our economy is totally tax free transportation mostly cash deals
I can go on and on the number of sectors that pay no tax to the government is much bigger then admitted reason simple Rich are to powerful they get away with everything and most politicians are landlords and industrialist themselves so who is going to collect from them.

Such things are always accounted for as estimates in the calculations.

 

[Neo]

Pakistan has a viable economy, says Noble laureate Professor Sen​

KARACHI (February 09 2009): The auto industry in Pakistan needs a long term and consistent policy to achieve the 500,000 units target. This will go a long way since engineering is the springboard of industrial development.

Pakistan has a viable economy, blessed with right entrepreneurship, right professionalism and right workmanship. Since 1951 to 2008, the average GDP growth has been 5.14 per cent higher up to 7 per cent.

The Noble prize laureate Professor Sen while addressing a gathering in his honour in India shared his vision about globalization in the presence of Indian prime minister and said that - globalization - economic liberalism, de-regularization and privatization - has led to higher deficit finance, trade imbalances and inflation all over the world and particularly the developing economies: to Benazir Bhutto, he said, that solution of poverty alleviation lies in glocalization for the developing countries like Pakistan. The Glocalization in fact - is Honda way - ie localisation of investment, production, QCD (based on quality, cost and delivery) and export. This is being generally also followed by some developing countries notably by India, Malaysia and China with tariff and non-tariff barriers. Incidentally, in that also lies increased investment, GDP growth and employment leading to alleviation of poverty - roti, kapra aur makan - of the ruling People's Party's motto.

Honda Atlas will play its part, among others. It will continue to live up to its commitment in offering products that change the landscape of the auto industry in the country.

 

[Neo]

Can anyone explain what happened to Pak economy suddenly after 2007. Pakistan was almost growing at 6-7% and India at 9%. But now India is growing at 7.1% in Global Down-turn, but this was unexpected of Pakistan.

Political and economic instability, energy-oil crisis, terrorist attacks, monetary crisis all created the current malaise, but compared to shrinking economies elsewhere (UK, Japan) 1% growth isn´t bad.
We´ll be back on track soon...economy is already stabalising.

 

[Neo]

Pakistan’s Inflation Slowed to 8-Month Low in January ​

By Khalid Qayum and Farhan Sharif

Feb. 9 (Bloomberg) -- Pakistan’s inflation slowed to an eight-month low in January, stoking speculation the central bank may lower interest rates in its next policy announcement.

Consumer prices in South Asia’s second-largest economy increased 20.52 percent from a year earlier after gaining 23.34 percent in December, the Federal Bureau of Statistics said on its Web site today.

“The decline in oil prices and stable food prices have had a positive impact,” said Imran Khan, head of research at First Capital Equities Ltd. in Karachi. “In its next review, there’s a bright chance of an interest-rate cut by the central bank.”

State Bank of Pakistan on Jan. 31 kept its benchmark interest rate unchanged at 15 percent, after five increases in the past 18 months, as inflation eased from a 30-year record. The central bank’s next monetary-policy statement is due to be released in late April.

“Inflation is moving in the right direction and coming down,” Governor Salim Raza said at the time in his first policy decision since taking over from Shamshad Akhtar at the start of the year. “But it will take time and is difficult to shake off.” Pakistan will review interest rates every quarter rather than every six months, he added.

Consumer prices increased an average 23.85 percent in the July to January period, compared with 8.56 percent a year earlier, according to the government agency.

Former governor Akhtar increased the discount rate to a decade high to slow inflation and help build Pakistan’s foreign- exchange reserves. Pakistan was forced to turn to the International Monetary Fund for a $7.6 billion rescue package after its reserves shrunk 75 percent in a year to $3.45 billion.

Higher borrowing costs have dented growth in the economy, which is predicted by the government to expand at the slowest pace in seven years.

To contact the reporter on this story: Khalid Qayum in Islamabad at kqayum@bloomberg.net.

 

[keeninterest]

1 or 2&#37; hardly makes a difference for a small economy.
Pak economy is between 100-200bn$. 1% of which is 1 or 2bn$. Hardly significant

Now American economy is 10trillion$, 1% growth means 100bn$.

Musharraf couldn't have done much in these turbulent times IMHO>

The present condition of Pakistan is drastically similar to those that India had to face during 1991-1992.(Hyper inflation of about 13%, GDP growth of about 0.72%, and foreign exchange reserves at a dismal 900 million$.) Infact India's condition was much worse than today's pakistan. Pakistan is adopting the same route that India adopted 17 years ago----Go to IMF. With IMF's help and due to some very good decisions from our then policy makers, namely our finance minister Dr. Manmohan Singh we overcame the crisis.

Lets see if Pakistan can do the same.

There is no reason why they cant do the same but the issue is will they be hampered by another dictatorship and just in case they are then they are bound to face same uncertain times again and if that coup were to happen again then the growth would again be hampered, its a bad-bad vicious cycle for them. I see sense in what neo and agnostic muslim said but quite clearly one thing I think both missed out was a period of decades together where the democratic process is not hampered unlike what has continuously happened in the past. For me that is the key, and if they can sustain that peiod all their ills will be taken care off including economy .Interestingly the pakistani rupee is still taken as 51 to a dollar when it comes to calculating their gdp figures, so that in itself should say a lot about the actual status of pakistani gdp between 100-200b usd when the pakistani rupee trades at 78-79 to a dollar, and if one was to adjust that figure to last years gdp of 160 busd then that pretty much comes to around 103b usd.

 

[Bull]

Wishful thinking, our economy is quite resilient, we're gonna need some time now to recover and get back to our original growth, this WoT and this new government are a pain in the butt.

WoT and New govt wasnt the reason why your growth rate has fallen.

 

[Myth_buster_1]

WoT and New govt wasnt the reason why your growth rate has fallen.

whaaat?

just one two bombs here and there depletes your foreigner investments just like that, (Marriott and taj mahal hotel) are prime example. unnecessary security takes huge chuck off your budget. and btw do have any idea what misery this new gov with zardari aka mr-10% has brought to this country already in 4-5 months!

 

[opinion786]

Thats not an explanation at all. How can democracy take away all the growth.

Pakistani growth rate at the boom time was aided by inflation and lesser by real growth. When prices fell, the inflationary effect dissappeared and so did the growth rate.

All those experts who were harping about Pakistani economy tripling in a decade or so will have to eat their words now and look at it shrinking at a faster pace.

Because demon-crazy is assisted by crooks and dakoos!

Inflation is STILL highest ever in pakistan ..... inflationary effect didn't disappear..... but the growth disappeared!

Pakistan's May inflation highest in three decades | Reuters

 

[notorious_eagle]

Nodoubt that the economy is in pretty bad shape right now, and i really dont see things getting better before 2010. The government certinely has made some reforms, lets hope that they can implement these reforms. The loan from IMF can be a blessing in disguise because they forced the government to make some reforms. But one thing is forsure, PPP will loose the next election. Unless they can turn around this economy, they are going to loose the next election forsure. Also keep in mind that there were a lot of factors in 2008 which brought the economy to a standstill.

 

[Omar1984]

Musharaf was good for Pakistan's economy. He wanted to work with the new elected government, but our people didn't know what was good for them. PPP could've let Musharaf in charge of the economy while they tried to solve the war of terror. That would've worked out well for Pakistan but again our people dont know whats good for them.

Now that theres democracy in Pakistan, the economy is suffering and theres more violence in Pakistan.

I thought the economy would improve once Gwadar Port became operational in December 2008.

 

[bernard]

Pak GDP growth < 1&#37;

I live on $1/day, and am from low caste dalit

 

[slugger]

Inflation goes up by 23.85pc in 7 months

The Federal Bureau of Statistics data showed that on year on year basis, the inflation based on CPI by groups remained as follow, apparel, textile and footwear inflation soared by 15.40 per cent in January 2009 over the same period last fiscal year. Similarly, the house rent increased by 18.21 per cent during January 2009 as against the same period of the last financial year.
The fuel and lightening prices augmented by 26.90 per cent, household, furniture and equipment 14.62 per cent, recreation and entertainment 12.59 per cent, education became more costlier by 17.06 per cent, cleaning, laundry rates swelled by 19.42 per cent and medicare prices shot up by 14.36 per cent during the period under review.
The break-up of food and beverage inflation showed that gur prices ballooned by 12.49 per cent during January 2009 over the previous month, sugar 10.74 per cent, fish 4.74 per cent, vegetable ghee 3.13 per cent, fresh fruits 3.07 per cent, pulse gram 2.92 per cent, mustered oil 2.85 per cent, dry fruits 1.69 per cent, besan 1.43 per cent and betal leaves & nuts 1.07 per cent.

 

[s90]

i didnt heard this type of news in other big papers

Pakistan expects GDP to grow up to 4.5&#37;
Reuters
Published: December 06, 2008, 23:53

Karachi: Pakistan's GDP is expected to grow by between 3.5 and 4.5 per cent in the fiscal year 2008-09, slowing from 5.8 per cent growth in the previous year, the central bank said yesterday in its annual report.