Pakistan’s worsening economic state would also affect India

Discussion in 'Pakistan' started by Ray, Jun 12, 2012.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    WHITHER PAKISTAN?

    - Pakistan’s worsening economic state would also affect India
    Writing on the wall: Ashok V. Desai

    The State Bank of Pakistan has been busy denying rumours that its copper and aluminium coins contain gold. Apparently, some clever businessmen have been telling Pakistanis that their copper and aluminium coins are worth much more because the SBP has put gold in them, and that once enough people find this out and install hearths in their houses to melt the coins, they will disappear from circulation. It is honourable of the bank to deny the rumours, for they can only add to its profits. If people melt coins, there will be a shortage of them; the SBP can then issue more of them. Since they are only made of base metals, they are worth far more than the metal they embody, and the SBP makes a profit on them. It has forgone the profits. But the same crooks manufacture Indian coins and live in luxury on the profits. The Reserve Bank of India could not care less. The coins add one or two per cent to the normal Indian inflation rate of 10 per cent a year; we Indians can take that in our stride.

    When the SBP is not kept busy by smugglers and forgers, it watches the economy and tries to keep it on the rails. Its most interesting publication is the annual report, to which it has now added quarterly surveys of the economy. According to the latest annual report, Pakistan’s gross domestic product grew 2.4 per cent in 2010-11. It will be recalled that the Indus floods of July 2010 devastated a fifth of Pakistan, and affected 20 million people. According to the SBP, this was especially hard on rich landlords; while aid poured in from abroad, the rich were too proud to go and stand in a queue for foodgrains or fertilizers.

    Most of the growth was in services, whose output grew 4.1 per cent; the highest growth — 13 per cent — was achieved amongst services by the government. The war on terror and a 50 per cent salary increase for government servants were major factors in its high growth. The SBP makes an interesting comparison between the Indian and the Pakistani railways. The Indian Railways has one worker per 5000 passengers; Pakistani railways have one per 1000 passengers. As a result, the Indian Railways spends less than 60 per cent of revenue on wages, against over 80 per cent for Pakistani railways. (Although the SBP does not draw the inference, an average Indian worker is paid immensely more than a Pakistani worker.) The Indian Railways subsidizes passengers from freight earnings; Pakistani railways do it on a much larger scale. Mamata Banerjee had better take note. Although she has tried her best to ruin the Indian Railways, she has much catching up to do before she can compete with her Pakistani counterpart.

    Industrial production fell slightly; the fall was due entirely to electricity production, which fell 21 per cent. Capacity utilization figures for Pakistan’s industry are astonishing: more than half the capacity was unused in 2010-11 — 24 per cent in cement, 45 per cent in sugar, 51 per cent in cars, 60 per cent in steel, 65 per cent in refrigerators, 82 per cent in flour mills, and 90 per cent in commercial vehicles. If Pakistani manufacturers can survive with so much surplus capacity, their profit margins must be really big. They are not the only ones who do well; so do smugglers of tea and cigarettes. These are good products to smuggle into Pakistan.

    Meanwhile, industrial production continued to be constrained by lack of power. The origin of this shortage is interesting. It is not because power companies cannot supply the power. It is because of the way price control on electricity works. To be effective, price increases have to be approved first by the National Electric Power Regulatory Authority, and on its recommendation, by the federal government. The government is extremely reluctant to raise prices because it is ultimately responsible for financing the losses and does not want to do so; so power producers run out of cash and stop producing. The government is one of the biggest defaulters on payment. When there is no cash, power production stops. The average urban load shedding is 4-6 hours; in April 2011 it went up to 10 hours. In villages it was considerably more. Power production is a marginal industry in Pakistan — much more so than in India........

    A significant proportion of it went to power generation and distribution companies; in the present circumstances, it is money down the drain. Much of the remaining finance to the private sector goes to importers and exporters. What this means is that banks finance economic development much less in Pakistan than in India.

    Pakistan’s plight looks so much like India’s in the 1950s and 1960s. There is also a certain similarity in the mindset. At that time, Indians thought that they were struggling against powerful foreign forces; so do Pakistanis today. The only difference is that despite its lack of friendliness with Pakistan and the West, the Indian government then spent heavily on development; Pakistan is spending very little on it today. If its government continues to be so shortsighted, Pakistan’s condition may worsen further; that cannot leave India unaffected. Even those who feel unfriendly towards Pakistan need to ask whether it is not in our interest to give it a helping hand.

    More at:

    Whither Pakistan?
     
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  3. mki

    mki Regular Member

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    in this whole article the havent discribed how it will affect india.... or i faild to understand?
     
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  4. ajtr

    ajtr Veteran Member Veteran Member

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    Genius its simple a chatic Pakistan gonna take india down if it dont stabilizes.
     
  5. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    ^^ We are going to call your bluff.

    All possible endeavors will be undertaken to destroy your pathetic crap of a country, and let us see what you do.

    The world has had enough of your bullshit, blackmailing the whole world with a gun held to your own head. Damn, the entire nation is like this! :rage:
     
  6. mki

    mki Regular Member

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    cant you pakistanin think without i die you die..... here i asked other intelligent people who think about growth and economy...... not you....... i know your skull is full of shit......
     
  7. ajtr

    ajtr Veteran Member Veteran Member

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    We too are waiting for the same to see how long india survives if anything history teaches is that its the west which always takes down india.
     
  8. mki

    mki Regular Member

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    "If anything history teaches." India was, is and will survive..........
     
  9. ajtr

    ajtr Veteran Member Veteran Member

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    No.Coz subcontinent is like one body with three mouths (bangladesh,india,pakistan).even if one is affected other will get burnt too.
     
  10. mki

    mki Regular Member

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    not necessury.... your beloved porkistan become was mistress of US, and now it become street hooker and terrorist state...... on other india is walking on the red carpet of growth.........
     
  11. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    History has taught me that you are full of shit.

    And ---- history - history never "showed us" that the American continent was capable of anything, till the 1800s, when history was made. History never "showed us" so many things.

    And the future is that India will forge a different destiny from the poinsonous cancerous tumour called Pakisatan. Unless that entire shitty country is detoxicated, and the people brought in line by massive force.
     
  12. SLASH

    SLASH Senior Member Senior Member

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    And what and how are they going to do this? You have been trying it for past 60 years.
     
  13. arkem8

    arkem8 Regular Member

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    The notion that Paki stablity =Indian stabilty is total potty/sandas propagated by the Pakis and Indian WKK brigade. A short study will reveal that:-

    Stage 1:- 1980-1990 -Khalistan insurgency, Kashmir insurgency, several bomb blasts in rest of India.(Pakistan had a healthy economy viza viz India who had to endure the era of Rajiv Gandhi, and then we went belly up in '91 after Soviet dissolution and before reforms, the military was strong relative to India on the back of the successful afghan war and was well funded with plenty to spare for payments towards jihadis )

    Stage 2:- 1996-2012-Kargil loss, Kashmir wind down(see current tourism figures) and the rare bomb blast in a Metro(Pakistan is an economically failed state, has multiple insurgencies in ALL states, the Kyber Pakhtunkwa is already lost, soon Balochistan and Sindh will follow, the army cannot keep up with Indian arms aquisitions and depends on high tech baksheesh and Made in China maal )

    you have to be a complete retard to not see the trend.....
     
  14. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    Exactly! This is what I keep telling all the assholes who speak of "Aman Ki Asha" and "stable Pakistan is in India's interest". I feel like punching their faces in!

    Let us get it very clear, an unstable Pakistan is the best thing for India.
     
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  15. arkem8

    arkem8 Regular Member

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    How dare you question the candle kissing brigade, you must be a saffron terrorist/ RSS agent/ (insert bile of choice).... Shame on you!
     
  16. lcatejas

    lcatejas Regular Member

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    God help stupid pakis to help them to come out of dreams and accept the reality .. Mar gaye bharat ko marne wale....:namaste:
     
  17. Singh

    Singh Phat Cat Administrator

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    Actually the article seems to imply imo a worsening Pakistan economy would positively affect India, we can screw them harder, and help our smugglers/manufacturers/exporters make a killing in exchange.
     
  18. Archer

    Archer Regular Member

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    For the subcontinent, India is the head and upper torso, Bangladesh, Nepal, Sri Lanka could be considered some other limbs, Pakistan...well, its really the a$$hole. :D
     
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  19. Archer

    Archer Regular Member

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    With what? All the Pakistani women will take off their burqas and come to India and pose in bikinis like Veena Malik?

    How awful.

    Bring it on. :D

    PS: Pakistan has never been stable, has always been begging for aid and running from crisis to crisis and losing wars against india. So whats new :D
     
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  20. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    Kuchh baat hai ki hast mitati nahin Hamari, sadiyon raha hai dushman sara Jahan Hamara

    -Iqbal
     
  21. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    That is why Pakistan is the boss......
     

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