By October 2007, at the end of Prime Minister Shaukat Aziz’s tenure, Pakistan raised back its Foreign Reserves to a handsome $16.4 billion. His exceptional policies kept our trade deficit controlled at $13 billion, exports boomed to $18 billion, revenue generation increased to become $13 billion and attracted foreign investment of $8.4 billion. Illustrating in mathematics for easy understanding, on October 2007, when PM Shaukat Aziz left us:
Exports - $18 billion
Imports - $30.53 billion
Trade deficit - $12.53 billion
Foreign Reserves - $16.4 billion
What is to be seen above is that, Pakistan’s Foreign Reserves $16.4 bn exceeded the trade deficit $12.53 bn by a comfortable $3.87 billion and with an additional foreign investment of $8.4 billion – Pakistan’s currency stayed stable at Rs.61 per dollar. Currency starts to devalue ONLY when the Trade deficit surpasses the Foreign Reserves. This rare phenomenon occurred in present government, which has led to devaluation of the currency by 40%. During 8 months of present government,
Trade deficit - $20.74 billion
Foreign reserves - $8 billion
Meaning reserves fell from $14 billion to $8 billion and the trade deficit increased from $12.53 billion to $20.74 billion. The moment the foreign reserves ($8 bn) fell below the trade deficit ($20.74 bn), the currency starts to devalue. Under Mr. Shaukat Aziz, rupee stayed stable as shown below, till October 2007, because our reserves $16.4 billion EXCEEDED our trade deficit of $12.53 billion.
2001-02:Rs.61
2002-03:Rs.57.7
2003-04:Rs.57.92
2004-05:Rs.59.66
2005-06:Rs.60.16
2006-07:Rs.60.5
2007 (Dec): Rs. 61
To cope up with the economic destability,the easier course adopted again, to beg around the world barefaced or go back to IMF. This latest IMF loan of $7.6 billion, pre-arranged for a period of two years, is merely an economic deception and yet another soothing drug given to us by our government. It will not help boost an economy whose foreign investment is declining, and where the trade deficit exceeds the total foreign reserves.
If Pakistan wishes to remain free from influence of IMF, there is no better option than to assert our economic sovereignty and accumulate Foreign Reserves, from help of over-seas Pakistanis, attract foreign, public & private investment.
Salam replied on Thursday, February 5, 2009 05:02 PM
Shaukat Aziz was a member of an elite cabinet which performed very well in all spheres not only in finance. e.g.
Internet facility was extended from 40 to 1000 towns over fiber optic.
Media flourished.
Higher and basic education made giant leaps forward.
We steped into space sciences with PakSat. and second sattelite launch was planned in 2009.
Gawadar port and airport developed. Islamabad airport was suppose to complete in 2009.
Ground breaking of many mega buildings was performed i.e.
World trade center Islamabad
Centaurus Islamabad
Grand Hayyat Islamabad
Mubarak center Lahore
Karachi Financial center
IT tower Karachi
Crescent bay Karachi
Karachi port tower
Island project
Pakistan's defence was made strong JF-17, Al-Khalid tank
Pakistan's defence export reached record level of $500 million plus.
private industry and bussiness flourished
Foreign investors flocked to Pakistan.
There was a target to make Pakistan a developed country and we felt it reachable. |
Muhaq-qiq replied on Thursday, February 5, 2009 05:50 PM
AOA to all,
Ayoub khan established the first infrastructure in Pakistan that we still enjoying but he was misadvised by the "darbaries".
Bhutoo brought total change and try to establish again new foundation of infrastructure but he was also traped by his "darbaries".
Zia -ul- Haque was able to secure western borders but knock down by his own "darbaries".
Nawaz & Mohtarma tries to do well but again darbaries!
Musharraf and his team also tried hard to bring Pakistan back to track, but after all again old darbaries played their role.
And now again the same game is on the way.
Solution:
1- Pakistan is a agriculture based land and for some time should not waste energies to travel over the technology based route.
2- Justice syetem must be established/enforced at its best based on pure islamic appications.
3- Government should apply tax on agriculture, derived from islamic conditions.
4- Interst(sood) must be stopped immediately(Allah(SWT) gives assurance in Koran for the betterment)
5- The overseas Pakistanis must be given their rights and should be treated in a very effective manner, waste of their energies is no more affordable for Pakistan.
6- We must establish good relations with our neighbours and must know how to deal with "HIKMA".
7- The reputed assemblies should pass the laws for all the parties in Pakistan to establish a system of "Internal Election".
Jeeway Pakistan Sada Jeeway(Inshallah)-Amin |
