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world heading towards deep recession,

(51897)
   silent warrior
Sunday, March 8, 2009 01:21 AM 
Reply: >
as we all are well informed that world is heading towars deep recession or depression specially American and europre some even predicting great depression. There are mixed views on how severe the recession will be, and the goal-posts seem to be shifting on a weekly basis as retailers go to the wall, company profits plunge, unemployment rises, and the housing market stands stubbornly still. People are unable to pay their mortages and their houses are repossesed. i dont know what will happen in future but picture is very clear.
I would love if my friends from foreign and from pakistan comment about Pakistani economic situation keeping in mind the case scenario....
Habib replied on Sunday, March 8, 2009 03:41 AM 

Pakistan is not effected like the west, in west money is basically a trust so many layers of mortgage are found on a small core, which some times non existant. In the old economy the things were material. Pakistan is midway between old and moderen system. Though there are many benefits of Moderern economic system but Lack of trust effects it more than any thing else.
In pakistan we facing different problems like terrorism, unstable political situation, corruption on all levels, lawlessness. Lack of infrastructure and Weak institutes which are bullied by Politicians army and establishment. So we are in recession is decades.
Naveed Yaseen replied on Sunday, March 8, 2009 05:47 AM 

Habib sahib has rightly pointed out Pakistan's set of problems is different than developed world. These are primarily political/economic mismanagement-cum-corruption with bullying (‘pigging’?) on institutions, and lack of emphasis in social development like education, productivity, health and justice.

However this US/Europe/Japan recession-cum-depression is likely to have some effects in Pakistan like following,,, (sorted by importance from Pakistani perspective)

• some reduction in political/military leverage of US, NATO and their cronies (good)
• some more shifting of world's power balance towards Asia (good)
• with developed world’s luxury consumption falling, ease on global resources competition, or in simpler words, ease in consumer real prices (good for middle class)
• more investments going where capital is more productive in real terms, the efficient technologies and the developing world (good)
• some instability in banking system (bad in short-term, good in long-term)
• some increase in saving rate (good)
• some hit on exports (bad)
• some hit on political loans/aids (good)
Ahmed replied on Sunday, March 8, 2009 07:33 AM 

THe biggest impact of the recession will be on pakistan's exports many manufacturing/processing companies will close down due to lower export orders. THat will further kill the middle class and lead to furstration and instability in the country.
yessss replied on Sunday, March 8, 2009 10:24 AM 

Almost everyone in the West has lost a great deal of money. All are hoping to recover it when the economies improve. BUT, until then, Pakistanis in the West have smaller cash flows and are less willing to tie their money up in real estate, especially in a country that is so unstable. So, the West's economic downturn will negatively impact Pakistan !!

Before I invest in Pakistan real estate, I need to know the evil Talibanization is not going to spread throughout the country, and that Mr. 100% is out of power. I equate the evilness of the Taliban and the evilness of corrupt leaders to be equally dangerous.
IR replied on Sunday, March 8, 2009 11:54 AM 

There is no doubt that Pakistan will get effected with this credit crunch but not in a sence like the US and Europe are effected. All the Luxury items are getting cheap but look at Pakistan e.g the demand of cars are very low in developed world even at low price but in Pakistan prices are sky high.
There is shortage of money in the world and paper money is loosing it's value. Indonashia is introducing gold coins for trade in the Country due to devaluation of paper money. The economy in US and Europe is based on loan/ interest money and due to collape of the interest economy system they are coming back to Islamic system to save thier economies with Zero percent interest.
Pakistan will be effected because of less foreing investment due to shortage of money in the world and less foreing remittances. Furthermore the there would be less exports in the other world will effect the Pakistani Economy.
Faisal Naseer (Ali3) replied on Sunday, March 8, 2009 12:02 PM 

Mr. Yessss: In Pakistan the two divides between people, Extremists and Moderates that Musharraf used to declare is not true. The actual two divides is Elites and Non-Elites. If the former is true, then why do we see the elites from the extremists/religious AND the moderates at the same functions, parties, they are business partners, relatives, arrange marriages of their children with each other?

The Taliban is a misnomer. Read brasstacks.pk to understand the phenomenon of the Taliban. I agree with you that narrow mindedness is also one of the evils of Pakistan. But that is something else. I live in DHA. Even the enlightened moderates so called educated "posh" people are narrow minded.

I have studied in a lot of detail, analyzed the real problem of Pakistan for many years, even have done deliberate public experiments and surveys. The ONLY problem is elitism. Elites (both moderates and extremists) and their protectors like Musharraf have deliberately invented these confusions.

One thing even Musharraf finally agreed. He said lack of socio-economic justice is the root cause of terrorism. WOW!! So you finally understood that? Ok, then, tell me, who is the root cause of socio-economic injustice??

Musharraf was the catalyst for terrorism. That's why it only increased during his rule, no matter how much they tried to curb it by spending our (poor people's) money and lives.
Hadhrat replied on Sunday, March 8, 2009 03:38 PM 

Ameer Al Mohmneen Hadhrat ALTAF bHAI, Seert UN Nabi (SAW) pay dAress dIYAH Hay. PHER BEE DAIN GAY

TALABAN KO CHOOROO Ameer Al Mohmneen Hadhrat ALTAF bHAI KEE BAT SUNOO, WO BEE UN SAY KAM NAY HAIN NAA.
limo replied on Sunday, March 8, 2009 05:05 PM 

Faisal you seem pretty visionary from your posts but why you fail to understand that the policies we adopted after 9/11 were solely because of enormous US pressure, yes its true that we failed to resist US pressure at that moment.And then started the fight aginst terrorism in which we played the fronline role.Naturally we had to face the repercussions too that we are facing uptill today.
It would be better for you to say that joining with US in this war against terror is the main reason that had promoted terrorism in this region.I am sure anybody at Musharaf's place would have done the same thing.Musharaf had never taken this decision of his own will, as we have always declared Talibans as our strategic asset and firing them back can never be a choice of ours.And why we did't say NO to US at that time, is a seperate debate.Hope it clarifies.
Faisal Naseer (Ali3) replied on Sunday, March 8, 2009 07:02 PM 

Mr. limo:

That "separate debate" is the main debate.

While i respect your opinion, i do not agree with it and i can prove it through logical analysis that the viewpoint you have presented is wrong. However, I DO NOT for a moment doubt your good intentions and patriotism for Pakistan.
Ejaz replied on Monday, March 9, 2009 02:57 AM 

If some body really wants to know different thoughts about Talibans, Fundamentalists etc etc etc...............Pl do read a book named "RELUCTANT FUNDAMENTALIST" .

It will open many ways to understand this issue. In this book, the writer(who is from Pakistan Origin) has taken up this issue in a really nice way.
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