Musharraf Supporters » Economic achievements

Gilani on Economy

uss017 — Tue, 14 Apr 2009 15:33:29 +0000

According to Prime Minister Gilani,

Our GDP has doubled to US $170 billion…

It should be noted that the above obviously could not have occurred under the current regime or through any of their efforts. In reality, the above is the fruit of the hard work carried out by the Musharraf government from 1999 till 2007.

Moreover:

The Prime Minister pointed out that today we have a sound architecture in place for developing and strengthening strategic political, economic, commercial, scientific, technological and cultural relations between our two countries.

Again, a quick reminder: the above is thanks only and only due to the effort of the Musharraf government from 1999 till 2007.

While the Prime Minister took the time to mention the role of Zulfikar Ali Bhutto and Benazir Bhutto – conveniently forgetting the fact that both, particularly the former, ruined Pakistan’s economy – he made sure not to mention the one government which transformed our petty economy into the size of $170 billion, with a consistent GDP growth of 6%+ – the Musharraf government.

Please read:

Gilani calls upon Chinese companies to invest in Pakistan in a big way

And let’s not forget:

PPPP Acknowledges the Improvement of Economy under Musharraf

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PPPP Acknowledges the Improvement of Economy under Musharraf

uss017 — Sun, 15 Feb 2009 17:52:52 +0000

On this blog we have collected a number of essays listing the economic achievements of the Musharraf government, arguing that none of the so-called ‘democratic’ regimes of Benazir and Nawaz, even when put together, come remotely close to what Musharraf accomplished for Pakistan’s economy within a decade’s time. These essays can be seen here:

Musharraf Economic Performance

[See also the Economic Pakistan blog]

There was a good reason to compile these essays. Opponents of Musharraf have been constantly claiming that Musharraf not only did nothing for Pakistan’s economy, but, in fact, harmed it immensely during his time. These Musharraf opponents belong primarily to the PPPP and PML-N parties and even now they can be seen making such allegations, both in newspapers as well as on various television programmes. Therefore, our aim was to demonstrate the utter falsity of this allegation and to expose these people as bald faced liars.

Finally, at least privately, the current PPPP regime has admitted this! In their ‘Letter of Intent’ to the IMF in a bid to secure a bail-out package of $7.6 billion, the PPPP government relied upon the economic successes and achievements of the Musharraf government as a major point to convince the IMF!

The following excerpts have been extracted from:

Govt appreciates economic policies of Musharraf regime

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Khan begins by saying (all emphasis added):

While publicly it criticizes former President Musharraf for the present economic mess, the government in its official documents has appreciated the economic policies of the previous regime that became a strong base for seeking loans from multilateral donors and friends of Pakistan.

So publicly, the government is lying.

Moving on:

The letter of intent (LoI), on the basis of which, Pakistan sought the much-needed $7.6 billion bailout package from the International Monitory Fund (IMF), has bit by bit appreciated the Musharraf policies since 2000.

During the past one decade (1999-2007), the LoI says Pakistan’s economy witnessed a major economic transformation from substantial increase in the volume of gross domestic product (GDP) to greater international trade.

The reason for the above:

An official source requesting not to be named said the economic wizards in the finance ministry are not politicians to make only speeches but they have to look into ground realities. ‘We reported to IMF whatever is factual and based on evidence,’ the official added.

In other words, they cannot afford to tell outright lies to the IMF, while the PPPP politicians can tell lies to the Pakistan public. The economists cannot continue with this tradition of deceit but must stick to the facts in their discussions with the IMF.

As Dr. Salman Shah rightfully pointed out:

Former Finance Minister Dr Salman Shah told this scribe the government has made the 170 million people fool while telling them pack of lies in the past nine months about the economic policies of the Mushrraf regime.

The truth is:

The LoI said the country’s real GDP increased from $60 billion in 2000-01 to $170 billion in 2007-08 with per capital income rising from under $500 to over $1000. During the same period, the volume of international trade increased to nearly $60 billion from $20 billion.

For most of this period, real GDP grew at more than 7 per cent a year with relative price stability. The improved macroeconomic performance enabled Pakistan to re-enter the international capital markets in the mid-2000s. Buoyant output growth, low inflation, and the government’s social policies contributed to a reduction in poverty and an improvement in many social indicators.

Had Pakistan’s economy not grown under Musharraf:

…Pakistan would have to apply for other long term IMF financing facilities like poverty reduction, structural adjustments etc, Shah said adding government should tell truth to the nation if they have confidence.

‘The recruitment made so far for running the finances of this country is very depressing. This shows this government has neither commitment nor capabilities to take the country out of the current crisis,’ Dr Salman said.

The actual cause of the current downfall:

He said the government admitted in the LoI, the current crisis was because of price shocks, global financial turmoil and policy inaction during the political transition to the new government. He blamed the current government for blocking inward movement of $5 billion by suspending privatization of major transactions.

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What the above means is that the PPPP (and the PML-N) has been busy telling lies about the performance of the Musharraf government. Either under Musharraf the economy did well or it did poorly. Both scenarios could not have occurred simultaneously. Either the PPPP officials told blatant lies to the Pakistani public or they told blatant lies to the IMF in their “Letter of Intent.” What we know for sure, however, is that they have been telling lies to at least one of the sides. We will let the PPPP decide in which instance they were lying.

Understandably the ever so grotesque Ishaq Dar (see also this) is still in denial, remaining unrepentant, and insisting he was right when he infamously blurted out that the Pakistan treasury was “empty.”

Let us also bear in mind the immense harm the present ‘democratic’ government has caused to the Pakistani economy in a short span of time, an economy they privately admit was immensely strengthened by the Musharraf government:

PAKISTAN BACK TO BEGGING under ‘DEMOCRACY’!

Finally, more good news. The “Letter of Intent” can be seen on the IMF website here:

Pakistan: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding

I end this paper by quoting the relevant sections from the government’s own “Letter of Intent”:

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I. RECENT ECONOMIC DEVELOPMENTS

1. In the last decade, Pakistan’s economy witnessed a major economic transformation. The country’s real GDP increased from $60 billion in 2000/01 to $170 billion in 2007/08 (fiscal year starts July 1st), with per capita income rising from under $500 to over $1,000. During the same period, the volume of international trade increased from about $20 billion to nearly $60 billion. For most of this period, real GDP grew at more than 7 percent a year with relative price stability. The improved macroeconomic performance enabled Pakistan to re-enter the international capital markets in the mid-2000s. Large capital inflows financed the current account deficit and contributed to an increase in gross official reserves to $14.3 billion (3.8 months of imports) at end-June 2007. Buoyant output growth, low inflation, and the government’s social policies contributed to a reduction in poverty and an improvement in many social indicators.

2. This strong macroeconomic performance resulted from the implementation of a series of important structural reforms. In the early 2000s, with financial support from international financial institutions (IFIs), including the IMF, the World Bank, and the Asian Development Bank, the government expanded the role of markets in the economy, privatized a number of large state-owned enterprises, established market-based regulatory bodies, and took steps to reduce the cost of doing business in Pakistan.

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A Tribute to My President

uss017 — Mon, 18 Aug 2008 11:13:59 +0000

August 18th 2008 is one of the saddest days of my life and for, no doubt, so many other people who love Pakistan. Pervez Musharraf was the best thing that had ever happened to Pakistan in decades. This honest man managed Pakistan with utmost dedication, humbleness and, through his hard work, managed to transform Pakistan’s bankrupt economy into a booming and resilient economy. The economy the size of a mere $75 billion in 1999 more than doubled in less than a decade under Musharraf. In 1999 ours was a debt ridden country with around 65% of our GDP used for debt servicing. Before September 11 2001 this figure had reduced to around 55% and, thereafter, it went down to 25%, which is a perfectly acceptable level. Our economy grew consistently at the rate of over 6% annually, having become a booming economy. In 1999 our foreign reserves were a mere $700 million, whereas by 2007 they had increased to $16.4 billion. Investment was pouring into Pakistan for the first time at a fast pace. Consider the fact that in 1999 Pakistan’s foreign investment was around $300 million whereas by 2007 they had increased to around $8.4 billion. The Karachi Stock Market rose from 700 points to reach around 16, 000 points. The National revenues of Pakistan were around RS. 300 billion in 1988-1999 period and increased massively to around 1 trillion in 2007. Likewise, public sector development stood at a dismal RS. 80 billion in 1999 and increased to around RS. 520 billion in 2007. Overall, Musharraf and his team had transformed Pakistan into the 3rd fastest growing economy after those of China and India’s in 2006, being the 3rd best in banking profitability in the world, with construction activity an all time 17 years high and large scale manufacturing 30 years high.

Consider other achievements. Under Musharraf the Mirani, Subakzai and Gomalzam Dams were constructed and Mangla dam was raised, thereby doubling its capacity. Pervez Musharraf inaugurated the dry port in the border town of Sust in 2004 and work began on the constructions of canals (Katchi, Thal, Raini canals). A number of motorways have either been completed or are under construction (e.g. M1, M3, M8, M10, M11) and the same goes for a number of highways (N5, N-25, N-35, N-45, N-50, N-55, N-65, N-70, N-75, N-80, S-1, etc.). Pervez Musharraf inaugurated the Makran Coastal Highway (N-10) project in August 2001, consisting of Karachi-Gwadar, Pasni-Gwadar, and Ormara-Liari (Balochistan) Highways. The Sialkot International Airport was completed in 2007 and work began on the Ghandara International Airport (Islamabad), which is set to be completed by Dec. 2010. Gawadar Mega seaport was constructed under Musharraf and, by 2005-2006, 49 public universities were operating in Pakistan (in 1999 we had 31 public universities).

Consider briefly Pakistan’s defence: our defence exports crossed the $200 million mark for the first time in 2006 and Pakistan underwent large-scale nuclear expansion. The safety of our nuclear assets was ensured through the implementation of an excellent command and control regime overseeing them. Our armed forces, the air force and the navy were equipped with the required modern weaponry throughout Musharraf’s term in office. One example, in 2007 Pakistan Navy Ship Zarrar, the first of Multi-Role Tactical Platform (MRTP-33), was commissioned into Pakistan Navy at a ceremony at PN Dockyard.

The above are just a few of the achievements of the Musharraf government which come to mind. For more details and references for the above, please see the links at the end of this message.

How did we repay Musharraf? By voting for known liars and corrupt individuals who looted Pakistan every time they attained power to such an extent that Pakistan had almost become a failed state and a bankrupt country. The goon of our times, Nawaz Sharif, did all he could to destroy Pakistan through large-scale corruption every time he came to power. The late Benazir Bhutto did the same. What the hell is wrong with us? Were we expecting these chors and luchakas, criminals, rascals, scums of earth, the lowest of the low and scoundrels to have done something different for the fifth time? Four times previously they did nothing but corruption and presided over South East Asia’s worst governments. Were we really expecting these people to have changed their ways? Did our people really believe that bastards like Zardari and Nawaz, who have fed their children with the fruits of corruption, would have done something good for the country this time around? How many times does a man need to make a mess of things before your thick head gets it that he will quite likely make the same mistakes again, therefore, best not to give him the same responsibilities again? Are our eyes so blind? Yes, I am saying that there is a serious moral and ethical problem with MANY of our people. You can be illiterate and still know the difference between right and wrong, haram and halal. It appears that many of our people, particularly the ones who voted for the PPPP and PML-N, have lost their ethics somewhere down the line.

Imagine the unbelievable situation: known liars, looters and robbers, such as Zardari and N. Sharif, have ganged up to take revenge against an innocent, decent and humble man, Pervez Musharraf. That N. Sharif and Zardari are corrupt individuals who looted the nation is an incontrovertible fact. This is not a mere allegation. Pervez Musharraf, on the other hand, is neither a filthy rich nor a poor man. He comes from the middle-class and he still belongs to the middle-class, upper middle-class to be precise. We know of no corruption charges levelled upon him personally. Even foes acknowledge that Pervez Musharraf is completely corruption-free. Therefore, we have unchallengeable criminals and scoundrels who are now preparing a silly “charge-sheet” against a universally acknowledged honest man! Only in Pakistan can we have criminals pointing their fingers upon an innocent man and trying their best to harm him! How dare they do this even if, for arguments, their charges were accurate given the fact they broke all corruption records in the past? A criminal has no right to put on trial another criminal! And who will do the trial of these known crooks? How dare they point finger towards anyone else?

Nawaz Sharif is large and fat physically, but he is a very small man mentally. N. Sharif tried to kill Musharraf and even hand him over to Pakistan’s arch enemy, India. This was high treason by N. Sharif for which he was rightfully found guilty and convicted by the Pakistan courts. Pervez Musharraf would have been absolutely justified in demanding N. Sharif’s execution. I so wish he had demanded it. But he didn’t. Musharraf forgave N. Sharif immediately and did not seek revenge. Later, upon the request of N. Sharif’s family and their desperate appeal to the Saudi royal family, Pervez Musharraf immediately allowed N. Sharif and his family to go to Saudi Arabia and live there in unimaginable luxury and comfort. The only restriction placed upon them was that they could not participate in Pakistani politics and enter Pakistan. When N. Sharif’s “abba jee” passed away, Pervez Musharraf offered his condolences to the Sharif family personally over the phone and allowed them to enter Pakistan for the burial proceedings. Pervez Musharraf continued to grant the Sharif family access to Pakistan from time to time on various occasions, such as weddings etc. Later, when N. Sharif’s son fell ill in London, Pervez Musharraf permitted him to go to London to be with his son. So then, despite N. Sharif’s unpardonable crime of treason and the destruction of the Pakistan economy, Pervez Musharraf always remained lenient towards him. This shows the greatness of Pervez Musharraf. In sharp contrast, N. Sharif is a small man with the mindset of a disturbed child and too much arrogance stuck up his high nose (my shoe would have looked better shoved up his nose). He has nothing more than sweet petty revenge on his mind and pure blood in front of his eyes. N. Sharif is such a good Muslim that he knows nothing about forgiving, forgetting and moving on. He cannot bring himself to forgive even though he is the one who was at fault right from the outset. The country does not matter to N. Sharif. His petty revenge and vendetta comes first … all else is secondary. So then, N. Sharif, being the small petty man that he has proved himself to be, will never rest in peace unless and until he achieves his revenge even if it harms the nation immensely.

Pervez Musharraf on a number of times invited everyone, including his opponents, to sit with him on a table, to forget the past, and to work together for the benefit and interest of Pakistan. He even brought about the NRO as a move towards reconciliation. The first ones to reject Pervez Musharraf’s offer, though immediately benefitting from the NRO, were these self-proclaimed “democrats”: N. Sharif and Zardari aka 10%. Is this democracy? Nay, is this even Islam? Islam teaches that if your fellow Muslim offers you a hand in peace, then you MUST accept it and CEASE ALL HOSTILITIES immediately. In fact, even if your non-Muslim enemy offers you a peace offering, then you are obligated to accept it. So by rejecting Pervez Musharraf’s repeated peace offers, not only did these looters, losers and corrupters expose the sham nature of their “democracy” rantings, they also demonstrated how far removed from Islam they truly are.

How on earth can we accept these evil people to bring about democracy in Pakistan when there is no democracy within their parties? Their parties are family properties and this is the way they also envisage running Pakistan.

After today, I hope and pray that Nawaz Sharif and Zardari break all records of looting Pakistan this time around. We deserve it. Since we voted for these confirmed looters, then let them do what they do best: loot. We do not deserve to have good, decent, sober-minded and intelligent rulers such as Pervez Musharraf, for whom only Pakistan comes first. No, we deserve the Sharifs, the Zardaris, the Walis, the Qazis and every other incompetent dimwit and duffer we can think of. You name the idiot and we deserve him/her.

I pray that Allah Subhana Watala punishes and humiliates Nawaz Sharif, Shabaz Sharif, Zardari, Bilawal Zardari, Asfandaryar Wali, Qazi Husain, the liar Ahsan Iqbal, the weird Sherry Rahman and Fazal urRahman (and all other associated crooks) in this world and also punishes and humiliates them in the hereafter, burning them in the fire whose fuel is men and stones. I pray that Allah always protects Pervez Musharraf, his family, friends and all loved ones, grants them courage and patience and make it possible for them to live in peace and normality in Pakistan or wherever they wish to reside. Ameen.

Always your supporters…

Pervez Musharraf hameesha paindabad!

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For a list of Musharraf’s achievements, see:

Musharraf Era: Ushers in Multi-Nationals Corporations & booms Private sector Business

2. Musharraf Era performance: Pakistan Flourishes

3. Under Musharraf

4. ECONOMIC GROWTH IN PAKISTAN

5. Pakistan’s economy…

6. Pakistan’s Economic success: Mercy of 9/11 or Macro-economic Policies?

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Musharraf Era: Ushers in Multi-Nationals Corporations & booms Private sector Business

uss017 — Tue, 18 Dec 2007 03:13:14 +0000

The aim of this paper is to list of some of the major recent investment deals which have occurred in Pakistan, projects already underway, investments which will take place in the near future, and to show that the private sector business of the country is witnessing unprecedented growth.

With three exceptions, all references have been submitted at the end of the essay.

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Musharraf Era: Ushers in Multi-Nationals Corporations & booms Private sector Business

Mirza Rohail Baig

An effective and successful manager manages his company with whatever resources he/she has, and manages to gear it towards an unprecedented growth and prosperity, utilizing all internal and external factors. Musharraf has proven himself to be the manager for Pakistan!

Multi-National Corporations (MNC’s) provide excellent job opportunities, bringing in the required capital, latest technology, developed human resources, management, quality and safety standards.

1. Dubai Ports World announced on 1 June 2006 that it will spend $10 billion to develop real estate, infrastructure and transport in Pakistan.

2. Emaar Properties announced on 31st May 2006 three real estates developments in the cities of Islamabad and Karachi. The projects, with a total investment of $2.4 billion, will include developing commercial and residential property.

3. Emaar Properties also signed an unprecedented $43 billion deal to develop two Island resorts – Bundal Island and Buddo Island – over the decade.

4. International Petroleum Investment Co., owned by the government of Abu Dhabi in the United Arab Emirates, has received approval from Pakistan’s government to build a $5 billion Oil refinery at Hub in Baluchistan. The refinery, which will be Pakistan’s biggest, will have the capacity to process 300,000 barrels of oil a day.

5. 2006: The government is all set to establish an ‘Oil city’ with an investment of $40 billion at Gwadar Port to make it the biggest crude and refined oil storage base in the region. The government has allotted 12,500 acres of land in Gwadar. The Chinese Petroleum Chamber would come up with $12.5 billion investment plan for the project.

6. Canadian Oil & Gas Company signed a $200 million project with Pakistan that would generate 50,000 direct jobs in Sindh. It will explore, develop, produce and commercialize Coal Bed Methane (CBM) in Pakistan up-to 70,000 barrels a day for about 20 years.

7. July 2006: The Government awarded three blocks in the country’s offshore Indus Delta to British Petroleum Pakistan. BP Pakistan (formerly known as Union Texas Pakistan) will explore gas blocks U, V and W, covering an area of 21,000 square km, for oil and gas reserves.

8. Dubai’s foreign investment in Pakistan’s capital markets recorded significant growth in 2006 and more than doubled to Dh1.278 billion ($351.5 million) by June 30th of this year. It stood at Dh554.9 million last year.

9. The KESC has awarded the contract for Phase-I of the 220 MW Power plant to METKA, EPC contractor, a Greek Company of international repute, whereas Phase-II for 565 MW is under process, it has been reliably learnt. The EPC cost of the project is around $186 million including approximately 11 million dollars for chiller equipment.

10. Sept 26: Am Power Company, a Kuwait-based company, intends to build 225MW combined cycle Power project located at the Sundar Industrial Estate at an estimated cost of $200 million.

11. The credit of building the Chashma-2 goes to the Musharraf Government. PM Shaukat Aziz launched work on the billion dollars 325-megawatt plant in Chashma, which is the second to be built at the site with Chinese help. The cost of Chashma-2 is around Rs 51 billion, which also includes Rs20.1 billion foreign exchange component.

12. In the much-awaited, but positive development, WAPDA has finalized a Chinese consortium, China Gezhouba (group) Co Ltd China and CMEC, China (CGGC-CMEC), for the construction of strategically the most important project: 969 MW Neelum-Jhelum Hydropower. Cost of Construction is above $1.8 billion.

13. French Renault is establishing a 40-million-euro assembling plant of Renault Logan cars in the country, with the production capacity of 15,000 automobiles per year. This project would attract 40 million euros’ investment and create 600 job opportunities.

14. The automobile industry in Pakistan has made remarkable progress during the last few years. Despite low indigenous base, it has attracted almost Rs100 billion investments. Rs 52 billion has come in direct manufacturing and Rs 35 billon in ancillary industry.

15. Pakistan Suzuki, a leading automobile company, has achieved exports worth $957 million during the last financial year 2005-06, which has been considered by the government as an encouraging sign.

16. The Motorcycle industry in the country is progressing as well since the manufacturing of motorcycles has touched the Rs.0.7 million mark in financial year 2005-06. Crankcase is manufactured mainly by only two companies but their production capacity is approx 6,000 sets per month.

17. Honda Atlas Cars held a Manufacturing Capacity Expansion ceremony of its auto plant. HACPL will increase annual production capacity will be doubled from the current 25,000 units to 50,000 units by the end of 2006. Total investment around Rs1.67 billion.

18. A Manchester (UK) firm called Drillcorer has just moved production of its drills to Pakistan. The result is that it can now sell them for £15,000 rather than the £65,000 it would have had to charge if they were produced in Britain.

19. 2005: Brunei government is financing the US$2.6 million training “Institute for Pakistan Foreign Service”. Under construction.

20. WASHINGTON: Pakistan ranked first among all developing world recipients in the value of Arms transfer agreements in 2006, concluding $5.1 billion in such agreements.

21. 2-12-07: Cement sales by Pakistani manufacturers to local and foreign buyers is expected to have reached 11.848 million tonnes during the first five months (July-November). Exports are expected to grow by 155% year-on-year to 2.531 million tonnes for the five-month period.

22. Pakistan’s Financial Sector is witnessing robust growth in Islamic banking. Two fully-fledged Islamic banks — one local and one foreign-based — have opened 23 branches recently. Bank Islami will be the 3rd Bank. The 4th Dubai Islamic Bank would open around 70 branches. Saudi Arabia would open the 5th Islamic Bank soon.

23. Takaful Pakistan Limited would soon commence operational activities in the country with an initial paid-up capital of Rs200 million and an authorized capital of Rs 300 million. Takaful is a system of Islamic insurance.

24. 14-6-07: Standard Chartered Bank of Pakistan (SCBP) has made a mega investment of Rs 30 billion to grow in a significant way in Pakistan.

25. Pakistan’s leading Edible Oil buyers are establishing 4 new refineries, officials in the industry said. Most of the refineries will be operational by the end of 2007 and they will double Pakistan’s CPO refining capacity of 2,025 tonnes per day.

26. 26-1-07: Canadian Wireless systems developer TenXc Wireless Inc. is partnering with Pakistani company Coherent Designs Pvt. to establish a joint development centre for wireless products in Pakistan’s capital. Global WiMAX market was worth $1.1 billion in 2006 and is expected to grow to $3.3 billion by 2009.

27. The Minister inaugurated ceremony of a software technology park. The high-tech IT park has been set up at Rawalpindi by a leading US IT company MTBC to start its business operations in Pakistan.

28. Capital Investment Overseas, an Abu Dhabi based company, will build a five-star hotel in Lahore, with an estimated investment of Rs20 billion (Dh1.25 billion). The construction of the 602 room hotel will be completed by the year 2011.

29. Saudi-Kuwaiti joint venture, Mid Roc Tussonia Ltd, will invest $3 billion to $4 billion in the next seven years in power generation, refining and real estate sectors in Pakistan. This was stated by the president of the Mid Roc Group, Sheikh Humoud Al-Sabah, at the launching of the joint venture here. Sabah said that his company would set up two wind power generation plants at Mirpur Sakro at a cost of $200 million. 2,500 acres of land has been acquired for this purpose. They will also establish a lube-based oil refinery at Port Qasim, over 500 acres of land, at a cost of $1.5 billion.

30. Tata Motors, India’s largest automobile firm, announced its entry in Pakistan through its subsidiary, Tata Daewoo Commercial Vehicle Co, with the commissioning of a new truck and bus assembly unit in Karachi. The plant has a capacity to produce 3,000 vehicles.

Similar essays and entries commenting upon the economic growth of Pakistan:

Musharraf Era performance: Pakistan Flourishes

Under Musharraf

ECONOMIC GROWTH IN PAKISTAN

Post-Musharraf scenario please . . .

Footnotes & Links

1. Dubai Ports

2. Emaar

3. Bundal Island

4. UAE refinery

5. Oil city

6. From the President of Pakistan website.

7. BP

8. Dubai Foreign Investment. See also this.

9. See this.

10. n/a

11. Chasma-2

12. See this.

13. Renault

14. Automobile industry

15. n/a

16. Motorcycle industry

17. Honda Atlas

18. Drillcorer

19. n/a

20. Pakistan topped list of arms purchasers

21. See this.

22. See this.

23. See this.

24. See this.

25. See this.

26. See this.

27. See this.

28. See this.

29. See this.

30. See this.

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Musharraf Era performance: Pakistan Flourishes

uss017 — Fri, 14 Dec 2007 14:56:55 +0000

This is a continuation and an expansion of the previous essay entitled: Under Musharraf

The purpose of this essay is, once again, to bring to your attention the wide-scale economic development currently being witnessed by Pakistan as well as the numerous large scale projects being implemented throughout Pakistan under President Musharraf.

As noted before, these facts are hardly ever mentioned on our news channels. As a result, many individuals seriously believe that nothing positive is taking place in Pakistan, that nothing has been achieved under President Musharraf, and that all is dark and gloomy etc. In reality, however, we have never witnessed as much economic growth in the history of Pakistan as is currently taking place. Never have we witnessed so much investment in Pakistan. Never have we witnessed so much boom in the economic sector. By large, things are heading in the right direction and, overall, the country has seen a significant improvement in almost every sphere and department.

With only a few exceptions, references have been provided for all of the points at the end of this paper.

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Musharraf Era performance: Pakistan Flourishes

Mirza Rohail Baig

This is all the more amazing when one considers that just five years ago, Pakistan was on the verge of bankruptcy, with only a little more than $1 billion in foreign exchange reserves, its stock market teetering at 1,000 points (worth $5 billion only) and foreign debt servicing at 65% of GDP.

The forex reserves now stand at over $16.5 billion. The once ever-declining rupee has been stable at around 60-61 to a dollar since Musharraf took over. Of the 184 member countries of the IMF, Pakistan’s rate of economic growth (7%) has been one of the best in the world. Moreover, the Karachi stock market is now above 13,000 points and worth around $65 billion. On top of that, foreign debt servicing has now decreased to 28%.

1. The Pakistan economy is among the fastest growing economies in the world, having reached the size of $160 billion from a mere $70 billion in 1999. Furthermore, Pakistan attracted a record investment of $6 billion last year.

2. 2007: National revenues had swelled from Rs 308 billion during 1988-99 to around a trillion in 2007 and the FBR now estimates 2.8 million income tax payers.

3. Public sector development program (PSDP) has grown from Rs 80 billion in 1999 to Rs 520 billion in 2007.

4. FACT: The rate of growth in Pakistan’s Large Scale Manufacturing (LSM) is at a 30-year high. Construction activity is at a 17-year high.

5. FACT: The Infrastructure Industries Index, which measures the performance of seven industries (i.e., Electricity generation, Natural gas, Crude oil, Petroleum products, Basic metal, Cement and coal) has recorded a 26.2 percent growth in the Industrial sector of Pakistan.

6. FACT: Jan 14: According to the National Education Census (NEC-2005), Pakistan now has a total of 245,682 Educational institutions in all categories, including 164,579 (i.e. 67%) in the public sector and 81,103 (i.e. 33%) in the private sector.

The census — jointly conducted by the Ministry of Education, the Academy of Educational Planning and Management (AEPAM) and the Federal Bureau of Statistics (FBS) — reveals that the number of private-sector institutions has increased from 36,096 in 1999-2000 to 81,103 in 2005, i.e. by 100%. Educational Institutions have increased by 45,007 in the Musharraf Era.

7. FACT: According to an IMF report, Pakistan is 3rd in Banking profitability in the world. On the IMF chart, Pakistan’s banking profitability is on third position after Colombia and Venezuela. On the same IMF chart, India is on the 36th position and China is on the 40th position.

8. FACT: According to a report entitled, “Doing Business in 2006,” co-sponsored by the World Bank and the International Finance Corporation (IFC), Pakistan globally ranks 10th among the countries most active in pursuing pro-business policies.

9. In 1999 what we earned as GDP: we used to give away 64.1% as foreign debt and liabilities. In 2006, what we earned as GDP: we gave ONLY 28.3% as foreign debt and liabilities. We are now SAVING 35% of our GDP for economic growth.

10. According to the Economic Survey 2005, poverty in Pakistan in 2001 was 34.46%. And now, after 7-8 years of Musharraf, poverty in 2005 was 23.9%. Thus, poverty DECREASED by 10.56%. Overall, 12 million people have been pushed out of Poverty in 2001 – 2005!

11. Literacy rate in Pakistan has increased from 45% (in 2002) to 53% (in 2005). Education now receives 4% of GDP and English has been introduced as a compulsory subject from grade 1.

12. 12-4-07: The IT industry, which was virtually non-existent seven years ago, has grown to be worth $2 billion of which $1 billion is export related. It registered a 50% growth. 55 foreign IT companies have already entered the market. Now the I.T. sector alone employs 90,000 professionals.

13. Nov 2006: President Musharraf said that Pakistan will set up Nine Engineering World Class Science and Technology Federal Universities by 2008 with foreign assistance. He said the institutions of higher learning would be established in collaboration with Italy, South Korea, Japan, France, Sweden, Netherlands, Germany, Austria and China. The Cost of building these Universities will be over Rs 96.5 billion.

The Vice Chancellors, Heads of department, Professors and Faculty of the planned university will be from these foreign Universities, while the examination system, the quality assurance followed, as well as the Degree awarded will also be from these foreign Universities.

14. The Government has approved to give at least 4% of GDP to Education in the 2007 budget.

15. In 1999-2000 there were 31 Public Universities. Now 2005-2006 there are 49 Public Universities.

Air University (established 2002); Institute of Space technology, ISB (established 2002); Sardar Bahadur Khan Women University, Quetta (established 2004); University of Science & Technology, Bannu (established 2005); University of Hazara (founded 2002); Malakand university, Chakdara (established 2002); Karakurum International university, Gilgit (established 2002); University of Gujrat (established 2004); Virtual University of Pakistan, Lahore (established 2002); Sarhad University of IT, Peshawar (established 2001); etc.

16. 6-member delegation of Australian Department of Education, Science & Technology and AusAID, visited Pakistan on the request of PM Shaukat Aziz in order to help Pakistan in its efforts to realign its TVET (Technical and Vocational Education and Training) according to the market needs. Chairman NAVTEC, Altaf Saleem, informed the delegation about NAVTEC plans to increase the capacity to train one million people annually by 2010 from the present annual capacity of 320,000.

17. Defense Exports of Pakistan have crossed the $200 million mark as the country’s robust Defense manufacturing industry continues to expand. This was disclosed by Major General Syed Absar Hussain, Director General, Defense Export Promotion Organization (“International Defence Exhibition and Seminar (IDEAS) 2006″ held at karachi.).

18. President Musharraf inaugurated an 18 Mega Watt Naltar hydro power project, of over Rs. 1.36 billion. The project was completed in four years at Naltar near Gilgit.

19. Pakistan is now in Large-scale Nuclear expansion. The reactor under construction could produce over 200kg of weapons-grade plutonium per year, assuming it operates at full power for a modest 220 days per year. At 4 to 5 kilograms of plutonium per weapon, this stock would allow the production of 40-50 Nuclear weapons a year.

20. The Karachi Port Trust (KPT) and Hutchison Port Holdings (HPH) of Hong Kong will sign a concession agreement for setting up a US$1 billion Deep-water container port, the first in Pakistan. KPT will invest $450 million for infrastructure development for the project. HPH will invest $557 million. In the first phase, a 1,500m quay wall will be built with a designed dept of 18m.

21. GILGIT: President Musharraf inaugurated the dry port in the border town of Sust, 200 km north of Gilgit. The Dry port, a Pakistan-China joint venture, was built in 2004 at a cost of Rs90 million, on a height of 10,000-foot.

22. Dec 2006: President Musharraf said that many canals, including the Thal and Raini canals, were being constructed for better utilization of the available water. He said Rs66 billion was being spent on the brick-lining of 87,000 canals in the country, adding that 6,000 new canals would be brick-lined next year.

23. The Private Power Infrastructure Board (PPIB) has approved expansion of Tarbela dam power project which would generate 960 MW costing $500 million.

24. President Musharraf recently inaugurated the Mirani Dam. Mirani Dam in Kech area of Mekran district, with a catchment area of 12,000 square kilometer, has been built in four years at a cost of Rs6 billion which includes Rs1.5 billion in compensation to the affected people. It will have a storage capacity of over 300,000 million acre feet of water.

25. Gomal Zam Dam: This project started in Aug 2002 and is expected to be completed in early 2008. It is located in the Damaan in NWFP. It is 437 feet high and will irrigate about 163,000 acres of land. The total costs amounts to Rs. 12 billion, with a gross storage of 1.14 MAF. It will produce 17.4 MW of electricity.

26. Mushrraf says the government is constructing the Katchi Canal, costing Rs40 billion, and that Punjab had been gracious to provide land for the 350 kilometer stretch which will pass through the province.

27. The Economic Coordination Committee decided to set up a $2-billion mega Oil refinery at Khalifa Point in district Hub, Balochistan. The refinery, commissioned by 2010, would have a maximum refining capacity of 13 million tons of petroleum products — higher than the country’s total existing capacity of 12.8 million tons.

28. Pakistan Steel Mills Corporation (PSMC) during the quarter July-Sept 2007 recorded the highest ever-sales figure of Rs 9.3012 billion.

29. The Compressed Natural Gas (CNG) sector of Pakistan has attracted over Rs 70 billion investments during the last five years as a result of liberal and encouraging policies of the government. Presently, some 1,765 CNG stations are operating in the country, in 85 cities and towns, and 1000 more would be set-up in the next three years. It has provided employment for 30,000 people in the country.

30. The Securities and Exchange Commission of Pakistan (SECP) has registered 1,135 companies during the first quarter (July-September 2007). With the new registrations the total number of registered companies with SECP as of September 30 reached 50,125.

31. Telecom sector has attracted an investment of $ 9 billion in the last three years. It alone created 80,000 jobs directly and 500,000 jobs indirectly.

32. Former corrupt and incompetent Prime Minister, Nawaz Sharif, made only one motorway – M2 (Lahore – Islamabad). Under Musharraf 6 motorways are either completed or under construction:

33. Under Musharraf various highways under construction throughout the country. Including N5, N-25, N-35, N-45, N-50, N-55, N-65, N-70, N-75, N-80, S-1, etc.

34. General Pervez Musharraf inaugurated the Makran Coastal Highway (N-10) project in August 2001, consisting of Karachi-Gwadar, Pasni-Gwadar, and Ormara-Liari (Balochistan) Highways. The cost of the Liari-Ormara Highway was Rs3.9 billion and that of Pasni-Gwadar Highway, Rs2.8 billion respectively. The total length of Makran Coastal Highway is 533 kilometers.

35. 2-12-07: Sialkot International Airport Limited (SIAL) completed. The 1,002-acre airport is 13 km west of Sialkot and is linked by a road to Gujranwala, Wazirabad, Gujrat, Narowal, the Export Processing Zone (EPZ) and the Sialkot Dry Port Trust.

36. Ghandara International Airport (Islamabad) the first-ever green-field airport being built at a cost of $400 million; with a renowned international consultant, Louis Berger Group of USA. President Musharraf laid the foundation stone of the project on April 7, 2007. It will be completed by Dec 2010. Its total area is 3700 acres (15 km^²).

37. Major Industrial estates are being developed under Musharraf’s vision: M3 industrial, Sundar industrial estate, Chakri industrial, etc.

38. Oct 2007: In the current fiscal year the Mining and Quarrying sector has registered a growth rate of 5.6 percent. Increased growth was propelled by strong growths recorded in magnetite (30 percent), dolomite (26.1 percent), Limestone (25.2 percent) and chromites.

39. The government has already started various initiatives, to discover and develop world-class copper-gold deposits in Chagai Baluchistan by Australian Firms which would fetch $500 million to $600 million per year.

40. Major reserves of COPPER & GOLD in Baluchistan’s Rekodiq area were discovered in early 2006. It has ranked Rekodiq among the world’s top seven copper reserves. The Rekodiq mining area has proven estimated reserves of 2 billion tons of copper and 20 million ounces of gold. According to the current market price, the value of the deposits has been estimated at about $65 billion, which would generate thousands of jobs.

41. Executive Committee of National Economic Council (ECNEC) recently approved 45 developmental projects in its meeting, including six revised projects, with a total cost of Rs 154.1 billion and with a foreign exchange component (FEC) of Rs 36.8 billion.

42. Rs 9.8 billion have been allocated for 91 different mega projects at Public Sector Universities across the province, said Sindh Governor Dr. Ishrat-ul-Ebad Khan.

43. Oct 2007: A fully functional TMS (Tax Management System), including profiling, withholding, return/payment filing, rectification, refunds, audit, and legal tracking is scheduled to be operational by 2007 in Pakistan, to process the tax year 2007 returns, according to World Bank.

44. The government is providing Sui Gas facility to areas of South Punjab at a cost of Rs 1.311 billion. A total of 1,138 kilometre gas pipeline is being laid. The districts benefiting from these schemes mainly include Multan, Khanewal, Bahawalnagar, Rajanpur, DG Khan, Vehari and Muzaffargarh.

45. The Karachi city government’s rehabilitation of Industrial zones and improvement plan for all four industrial zones of the city needs to be completed in 7-8 months. The projects are worth Rs 2.5 billion whereas the ‘beautification’ project worth Rs 4.5 billion.

46. 27-11-07: Pakistan Navy Ship Zarrar, the first of Multi-Role Tactical Platform (MRTP-33), was commissioned into Pakistan Navy at a ceremony at PN Dockyard.

47. 29-12-07: City Nazim Mustafa Kamal said the construction work of a 47-storey IT Tower in the vicinity of Civic Centre at a cost of $200m would start soon. Around 40,000 youth would get employment in the IT Tower. It will have 10,000 call centres, out of which 6,000 have already been booked so far.

48. The President approved the project of laying of 940-kilometre-long “standard gauge” Railway track between Gwadar and Quetta, with a cost of Rs 75 billion. A German firm won the contract.

49. To increase the income of farmers, the Government is investing Rs7.80 billion, under which a “Food Security Program” will be launched. Initially, it will be launched in 1,000 villages. The President said that Rs 3.60 billion would be invested in live-stocks and dairy sectors. About 1,200 model dairy farms and 2,950 cattle breeding farms will be established under this investment project.

50. Pakistan will launch a Self-controlled Remote Sensing Satellite System (RSSS), at a cost of Rs19.3 billion, to ensure strategic and unconditional supply of satellite remote sensing data for any part of the globe over the year. SUPARCO will implement it over a period of six years. President Musharraf has approved the project in principle.

51. The Governor of Sindh, Dr Ishrat-ul-Ebad Khan, inaugurated the DUHS Medical Research City with Dow Diagnostic Reference and Research Laboratories and Jinnah Genome Centre as its important components. He also laid the foundation stone for a library and sports complex which houses different constituent institutions of the university.

52. President Musharraf inaugurated a 50-bed state-of-the-art Workers Welfare Fund Kidney Centre. The first-ever kidney centre in Baluchistan, constructed on 7.5 acres, at a cost of Rs385 million, and having the diagnostic, dialysis, surgical and lab facilities, will help the people of this area.

53. Karachi: The building of the 50-bed Kidney Centre in Landhi has been completed. Minister Muhammad Adil Siddiqui said that the building of this centre had been built at a cost of Rs70 million.

54. CM Pervaiz Elahi inaugurated Pakistan’s first Software technology park (STP) on Ferozpur Road, to be implemented by Punjab IT Board (PITB). The Rs 1.5 billion project is set over an area of 32 kanals; will be completed in 12 months and is expected to directly create 10,000 jobs and generate economic activity of Rs 9 billion per year.

55. In what is considered a major leap for Pakistan, a Polytechnic Institute is being established to produce skilled workforce that will rescue the manufacturing industry from the clutches of foreign dependence. Being built in Korangi at a cost of Rs450 million, this government-funded institute will start operating in January 2007 and prepare 500 workers by the end of the first year, besides producing 22 different types of dies and moulds for aviation, telecom, pharmaceutical and other industries. Experts from Germany, Japan and Thailand assisted in developing its curriculum.

56. Police Act 1861 replaced by Police Order 2002 after 141 years. Police force divided into three separate wings: Watch and ward, Investigation and Prosecution.

57. Federal Minister for Commerce, in order to modernize tobacco farming in the country, is setting up a state-of-the-art Tobacco Research Centre in Bunner. Annually 8 million kilograms of Virginia tobacco (fine quality), worth Rs 9.2 billion is cultivated in Bunner. Under construction.

Under Musharraf

uss017 — Fri, 14 Dec 2007 14:53:18 +0000

Assalam Alaikum,

The following are some of the interesting facts and figures listing the achievements of President Musharraf, compiled by Afreen Baig, which we never get to hear on discreditable channels such as Geo (and this), for example.

Compared to this, former leaders B. Bhutto and N. Sharif have only a flimsy and laughably dismal record of ‘accomplishments’ to show to the nation (I will be commenting upon this in some detail in a future article). Nonetheless, despite their gory record, they are as arrogant as ever, wanting us to believe as if they were/are the best thing that ever happened to Pakistan! In my view, people who support these characters are even more delusional and victims of self-deception.

If one puts aside their hatred towards Musharraf and think soberly for a while, it will be seen that by large Pakistan has been heading towards the right direction, meeting a number of economic achievements. Certainly, the situation is not entirely fine and dandy, but it has significantly improved and is continually improving. These improvements and noteworthy accomplishments are either totally ignored or deceptively dismissed by certain channels, which have misled many into believing as if all is dark and gloomy in Pakistan. Let the record be set straight: many notable improvements have occurred in less than a decade’s time and more improvements are taking place.

With a few exceptions, all of the claims have been referenced.

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Afreen Baig

Under Musharraf’s vision: 9 world class Engineering universities being developed. [Source. The 9th was not decided at that time. Now it is decided].

Private sector institutions have increased from 36,096 (in 1999) to become 81,103 (in 2006). [Source. Read last paragraph].

Pakistan is the 3rd best in world Banking profitability. [Source].

Pakistan software now values around $2 billion, including $1 billion exports. [Source].

Around 80,000 jobs have been created by the Telecom sector alone. [Source].

Industrial Parks are being setup throughout the country for the very first time. [Source. See also this].

Major Mega projects like the Saindak, Rekodiq, Marble production, Coal production and Mining & Quarrying are being pursued. [Source. (Rekodig)].

GDP growth is now 6%. Earlier it was 3.5%.

Foreign Reserves from $1 billion to $17 billion.

Karachi stock market: rose from 700 points to 13,000 points. [Source].

Literacy rate has improved by 11%. [Source].

Poverty levels have decreased by 10%. [Source].

3 dams have been constructed: Mirani, Subakzai, Gomalzam dams. [See this, this, and this. (Kurram Tangi Dam)].

6 Motorways completed or under construction: M1, M3, M8, M9, M10, M11. [Source].

Six major highways under construction. [Source].

GWADAR advance mega Sea port developed under Musharraf’s vision. [Source].

Historic 100% increase in Tax collection of $11 billion. [Source].

Large scale manufacturing is 30 year high. [Source].

Construction activity is 17 years high.

Newly found World class copper- gold deposits in Chagai will fetch around $600 million per year.

A new Oil refinery with UAE will fetch $5 billion & will process 300,000 oil barrels a day. [Source].

CNG sector has attracted over $70 billion investment in last 5 years. [Source].

Industrial sector registered 26% growth. [Source].

Pakistan in 1999 was an economy of $75 billion and now in 2006 it is a $160 billion economy. [Source].

Pakistan economy is now the 3rd fastest growing economy after China & India.
(Wkipedia initially used the words “3rd fastest growing.” Now it terms it as one of the worlds fastest growing. This change occurred after this recent agitation).

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See also:

Musharraf Era performance: Pakistan Flourishes

Musharraf Era: Ushers in Multi-Nationals Corporations & booms Private sector Business

ECONOMIC GROWTH IN PAKISTAN

Post-Musharraf scenario please . . .

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ECONOMIC GROWTH IN PAKISTAN

uss017 — Fri, 14 Dec 2007 13:50:54 +0000

From the World Bank website:

After a decade of anemic economic growth, Pakistan’s economy has grown by more than 6.5 percent per year since 2003. While income inequality has increased somewhat, poverty has declined significantly.

and:

Exports (in US$ terms) have grown by over 15 percent since 2004. Investment as a share of GDP increased from 17 percent in 2001/02 to 20 percent in 2005/06. A wide-ranging program of economic reforms launched in 2000 – fiscal adjustment, privatization of energy, telecommunications, and production, banking sector reform and trade reform – have played a key role in the country’s economic recovery.

and:

Pakistan’s economy has shown great resilience in the face of the devastating earthquake, and future growth prospects for the economy are good.

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Pakistan’s economy…

uss017 — Fri, 14 Dec 2007 13:49:28 +0000

Pakistan Economy is Booming …

Dr Salman Shah, Pakistan’s minister of finance, MP Shahid Malik, who is also the British minister for international development, Barrister Iftekhar Ahmad, a political analyst as well as former Pakistani senator and Dr. Azeem Malik, who teaches economics at Oxford University, appeared on a GEO programme to discuss Pakistan’s economic condition a while ago. This programme, hosted by Aamir Ghauri, took place when President Musharraf was touring Europe and briefing the European leaders about the Pakistani situation.

To remind the readers, this is the same Aamir Ghauri who, around the same time, also appeared on the UK’s Islam Channel to share with us his anti-Musharraf rhetoric and ramblings. In the Islam Channel programme, Ghauri gleefully nodded his head in agreement while Basharat Ali went on and on challenging pro-Musharraf viewers to give him a “single example” of achievement of the Musharraf government and spoke to the few Musharraf supporting callers in an un-Islamic manner. At that time Ghauri did not have the honesty and the integrity to stop and correct Basharat Ali from making a fool out of himself.

In the above programme, however, Salman Shah offered a corrective of Pakistan’s economic situation and standing. Shah informed the viewers how Pakistan’s economy, under Musharraf, had transformed into a booming and resilient economy despite the political turmoil. Ghauri, quite understandably, seemed upset. So he had Dr. Azeem Malik on his programme as well, whose job, it seems to me, was to oppose whatever Dr. Shah said. Unfortunately for Ghauri, Dr. Shah out manoeuvred Dr. Malik in every instance. Dr. Shah rebutted almost every piece of disinformation presented by Dr. Malik and, interestingly enough, both MP Shahid Malik and Barrister Iftekhar Ahmad AGREED with Dr. Shah (bear in mind that this is a short 10 minute clip of the programme, so we do not see in this segment Mr. Ahmad speaking).

What surprised me was the way Dr. Malik spoke about Pakistan’s economic situation later on in the programme. Dr. Malik is supposed to be a teacher in economics, yet he proceeded to speak most unprofessionally and in a way which does not suit an economist. Based on his comments, it is hard to distinguish Dr. Malik from any average person walking on the streets of Pakistan having little or no clue about economics. To present a few examples, Dr. Malik went on to state that Pakistan’s debt, since 1999, had increased. But an economist is supposed to know that debt is seen in proportion to the economy. So while in 1999 65% of our GDP was used in debt servicing, today around 25% is used for debt servicing. Seen in this proper way, debts have decreased considerably. Dr. Malik also claimed that the U.S. aid played a major role in Pakistan’s economy. But such an assertion is laughable as Dr. Shah correctly pointed out (for a written response, see this paper). Dr. Malik, towards the end of the programme, also stated that Pakistan’s economy was in a bad state because “there is no wheat, wheat prices have increased, there is no electricity” (this is not a verbatim quote; I am only typing from memory) etc. Is this the way how an economist – particularly one teaching at Oxford (!) – is supposed to discuss economy? Dr. Salman Shah was himself taken by surprise by Dr. Malik’s street-talk “analysis” of Pakistan’s economy and proceeded to make important the corrections. [For a written response, see this and this].

It is a pity that the complete programme was not uploaded on youtube. Nonetheless, the above 10 minute segment contains good responses to some common pieces of disinformation floating around on Pakistan’s economy.

On The Long Road To Freedom, Finally

uss017 — Thu, 13 Dec 2007 20:11:01 +0000

On The Long Road To Freedom, Finally

By William Dalrymple

I don’t agree with every claim and assertion in the above article, but the following acknowledgements should be noted (all emphasis added unless otherwise stated).

The economy under Musharraf:

Yet the widespread publicity given to Pakistan’s 2007 crisis has obscured the important changes which had quietly taken place during Musharraf’s rule in the years preceding the collapse of his authority. The Pakistani economy may currently be in difficulties, with fast rising inflation and shortages of gas, electricity and flour; but between 2002 and 2006, it had been growing almost as strongly as that of India. For five years, until the beginning of 2007, Pakistan enjoyed a construction and consumer boom, with growth approaching 8 percent and what was briefly the fastest-rising stock market in Asia.

More on the economic boom under Musharraf and the lie about Pakistan being the most “most dangerous country in the world” and a “failed state“:

The country I saw last week on a long road trip from Lahore down through rural Sindh to Karachi was very far from a failed State. Nor was it anything even approaching “the most dangerous country in the world… almost beyond repair” as the Spectator (among many others) recently suggested. Instead, as you travel around Pakistan today you can see the effects of the recent economic boom everywhere: in new shopping malls and restaurant complexes, on hoardings for the latest laptops and ipods, in the cranes and buildings sites, in the smart roadside filling stations and the smokestacks of the factories; in the new 4×4s jamming the roads and in the endless stores selling mobile phones. In 2003, the country had fewer than three million cell-phone users; today apparently there are almost 50 million, while car ownership has been increasing at roughly 40 percent per year since 2001. Foreign Direct Investment (FDI) has risen from $322 million in 2002 to $3.5 billion in 2006.

The transportation system of Pakistan compared to that of India’s and the general peace in Pakistan:

It is true that on my trip there were pockets of great poverty and frequent shortages of electricity. At one point, I was told that I shouldn’t continue along certain roads near the Bhutto stronghold of Larkana as there were dakus ambushing people after dark. But by and large, the countryside I passed through was calm and beautiful, and not obviously less prosperous-looking than rural India. Indeed, the transport infrastructure of the country is in many ways better than India’s: Pakistan still has the best airports, motorway and road network in the region. Driving last week along the dual carriageways of Sindh, a week after bumping through rural Rajasthan, there was no comparison between the roads on either side of the border.

The Pakistani fashion, books and media:

The cities of Pakistan, in particular, are fast changing beyond recognition. As in India, there is a burgeoning Pakistani fashion scene full of ambitious gay designers and some amazingly beautiful models. There are also remarkable things happening in the world of books: as well as a fine crop of major non-fiction writers — Ahmed Rashid, Zahid Hussain and Ayesha Siddiqa at the front of the pack — there has been an amazing renaissance in English-language fiction, with fine writers like Kamila Shamsie, Nadeem Aslam, Daniyal Mueenuddin, Moni Mohsin, Ali Sethi and especially this year’s Booker short-listee, Mohsin Hamid, all for the first time giving their Indian counterparts a run for their money.

Recently, Hamid, author of the bestseller The Reluctant Fundamentalist, wrote about this. Having lived abroad as a banker in New York and London, he returned home to Lahore to find the country unrecognisable. He was particularly struck by “the incredible new world of media that had sprung up, a world of music videos, fashion programs, independent news networks, cross-dressing talk-show hosts, religious debates, and stock-market analysis.

Media openness in Pakistan under Musharraf:

I knew, of course, that Musharraf’s government had opened the media to private operators. But I had not until then realised how profoundly things had changed. Not just television, but also private radio stations and newspapers have flourished in Pakistan over the past few years. The result is an unprecedented openness. Young people are speaking and dressing differently. The Vagina Monologues was recently performed on stage in Pakistan to standing ovations.

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Pakistan’s Economic success: Mercy of 9/11 or Macro-economic Policies?

uss017 — Thu, 13 Dec 2007 20:04:15 +0000

Pakistan’s Economic success: Mercy of 9/11 or Macro-economic Policies?

Afreen Baig

The 1990’s was a lost decade for Pakistan, mismanagement at its helm and corruption rampant. Formation of failed policies, coupled with sheer incompetence and lack of commitment, kept deteriorating the economy of the fragile Country. Benazir’s era was further characterized by ungoverned manipulation and personal extravagance of her husband Zardari.

By 1999, not only were the $10 billion Foreign Reserves misspent without any accountability, but it also shattered the confidence of our nation. Expatriate Pakistanis kept a cautious outlook of the situation and held their foreign reserves back.

In 1999, Revenue generation of around Rs.308 billion could not meet the growing expenditure requirements; with only an average of Rs.80 billion being spent on Public sector development programs (PSDP) annually, and no visible project to boast about. From this Rs.308 billion around 65% was being utilized for debt servicing. In 1988 our foreign debt was $18 billion, but at the end of 1999 it had accumulated to become $38 billion. A 100% increased burden on the already crippled economy. Public and external debt exceeded 300% of Foreign exchange earnings. Pakistan had become a highly indebted poor country. Our poverty levels also increased to become 35% according to economic survey. This glooming situation was not being dispelled.

While the world was progressing, Pakistan’s economy was stagnated. Overall there was a feeling of despondency and uncertainty. It not only lowered the morals of the business community, but also affected adversely the Foreign Direct Investment (FDI). Foreign Investment started diverting to other promising Asian markets, especially that of India for their future prospects.

Nawaz and PPP often lament that during their tenures US and IMF Aid was suspended; and that President Musharraf’s government received huge aid after 9/11 to overcome the economic problems. To set the record correct, USA and IMF aid was suspended only after the Nuclear Atomic blasts of May 1998, but that too was RESUMED later that year in November, a week before Nawaz met President Clinton in USA. Before May 1998, the governments of Nawaz Sharif and Benazir Bhutto well-received worldwide aid and assistance from USA, IMF, OPEC, European countries, ODA & OOF bilateral agreements and World Bank.

The inheritance of the ailing economy that took place after October 1999 was not an easy task for the leadership of President Musharraf. Pakistan needed quick reforms, resource allocation, stabilization of policies and alluring back the Foreign Reserves and Foreign Direct Investment.

A misperception persists among some critics that attribute completely the turning around of our economy to: US aid or 9/11. Therefore, let it be clarified that major economic indicators had improved before 9/11, and the economy had already started showing signs of recovery and revival.

In that SHORT span of 2 years BEFORE 9/11, Pakistan’s revenue increased from Rs.308 billion to become Rs.395 billion. Exports increased from $7.5 billion to become $9.2 billion. Foreign Reserves increased from $ 1 billion to become $3.25 billion. Debt servicing as a ratio to Revenue decreased from 65% to 57%. Public and external debt as a percentage to Foreign exchange earnings declined from 300% to 250%. Current account deficit decreased from $2.4 billion to become $510 million. And, Pakistan’s large-scale manufacturing grew by 11% in June 2001 against 3.5% in 1998. These facts should set aside the skeptical grumblers.

Therefore, the entire credit of stabilizing Pakistan’s economy goes to the visionary decisions, sustained macro-economic policies and financial reforms of President Musharraf and the PM Shaukat Aziz. These also highlight their good intentions and ultimate honesty. Their sense of duty towards the country, honesty and the genuine resolve to address the problems does not arise from 9/11. Unlike their predecessors who swept problems under the carpet.

Now countering the other most popular allegation, i.e. US aid enabled the recent achievements.

The annual flows Pakistan has received during the last six years amount to approximately $ 1.75 billion from all types of US assistance – military, economic, and reimbursements for logistics support. Of these flows, the aid – military and economic accounts for $ 700 million annually.

This amount is 4.5% of total foreign exchange receipts, 7.2% of total budgetary expenditures, 6.4% of total value of Imports, 4% of total Exports and 5.8% of current account receipts of Pakistan. As a proportion of GDP of Pakistan these gross flows from all sources work out to only 3%. Negligible!

These figures by all means indicate the strength of Pakistan’s booming economy and establish the FACT that Pakistan is no more dependent upon US or foreign aid. Pakistan’s economy has managed to wriggle out of their clutches.

Pakistan’s economy grew at 6.5% to emerge as a $160 billion economy in 2007. Pakistan’s Revenue now stands above Rs.700 billion; as they increased by over 100% in just 7 years. The FBR estimates that there are now around 2.8 million Income Tax payers. A fully functional Tax Management System (TMS) was implemented on International standards with the assistance of World Bank.

Pakistan’s Public sector development program (PSDP) spending increased by over 400% to become Rs.520 billion. This has initiated major infrastructure programs throughout the country, including 7 Motorways and several Highways. Bridges erected and underpasses paved. 18 new Universities are already functioning and 9 Engineering Universities under construction.

Financial reforms enabled Pakistan to emerge as the 3rd best in Banking profitability according to IMF. Pakistan globally ranks 10th most active in perusing pro-business policies. The Infrastructure Industries Index in 2007 recorded a 26.2% growth in Industrial sector of Pakistan, with large-scale manufacturing growing at 11%. The Securities and Exchange Commission of Pakistan (SECP) registered 1,135 companies in first quarter of 2007. The IT industry registered a 50% growth.

Under President Musharraf, the government spent over $ 16.7 billion on poverty alleviation programs, and managed to cut poverty from 35% in 2000-01 to 24% in 2006-07.

The Foreign Direct Investment that the President and the PM managed to attract back into the country is entirely due to their credibility, professional wisdom and personal interaction with the world. Their visionary plans predispose the world to trust them. FDI increased by $ 5.1 billion, for a year-on-year increase of 45.6%.

We as a nation should acknowledge Pakistan’s accelerating prominence in International relations, give credit open heartedly where something is achieved and criticize positively only to achieve something better. Cynicism and despondency should be avoided. Pakistan’s National interest should be held foremost and without compromise!

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For a more detailed essay refuting the exaggerated notion of U.S. aid being the primary cause of Pakistan’s economic recovery, see:

IS U.S. ASSISTANCE REALLY SO CRITICAL FOR PAKISTAN?

For the recovery and success of Pakistan’s economy, see:

Musharraf Era performance: Pakistan Flourishes

Musharraf Era: Ushers in Multi-Nationals Corporations & booms Private sector Business

Under Musharraf

ECONOMIC GROWTH IN PAKISTAN

Post-Musharraf scenario please . . .

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