Pakistan's Economy On The Brink Of Callapse

Discussion in 'Pakistan' started by lambu, May 24, 2011.

  1. lambu

    lambu Regular Member

    Joined:
    Jul 15, 2010
    Messages:
    313
    Likes Received:
    77
    Location:
    banglore
    Pakistan's economy is on the brink of collapse and it standing at it's weakest position in the country's 64-year history. The annual economic growth of Pakistan has slumped to little more than 2.4%. The fiscal deficit has widened to unacceptable levels and support from the International Monetary Fund is the need of the hour for Pakistan.

    Regardless of the state of the economy, Pakistan's powerful military is on a shopping spree to compete with India. The United States has been a long time ally of Pakistan but that seems to be changing with Pakistan giving more preference to China over the US.

    The country's financial mess did not stop Pakistan's Prime Minister to return from a four-day visit from Beijing with the promise of 50 fighter jets worth about $1.1bn, and undertakings to develop Pakistan's navy. Pakistan is clearly trying to match India militarily without looking at it's financial state at all. The economy of Pakistan is no where even close to India's in terms of GDP.

    China has also promised co-operation with Pakistan in the fields of power plants, dams and nuclear assistance. This was clearly intended to reassure Islamabad of it's chief regional ally in the wake of the humiliation of the US raid on Osama Bin Laden. The founding and the death of Osama Bin Laden just 80kms from Islamabad is the darkest moment for Pakistan's army since the loss of East Pakistan in 1971.

    China has over the past two years cemented a relationship with Pakistan's air force over the supply of JF-17 aircraft and the offer of J-10 stealth fighters. This is clearly intended to pin down India's dominance as an air power in Asia.

    Pakistan is so desperate for support of the Chinese that it has decided to extend Pakistan's strategic partnership with Beijing from the skies to the Arabian Sea.

    Pakistan's defence ministry officials in the wake of a ballooning deficit are negotiating the purchase of six new submarines from China. Delivery of these submarines is expected over a decade. The deal to supply 6 submarines could be worth well over $3bn and would be the largest defence purchase between the two neighbours.

    Pakistan is opening a doorway to the Chinese to broaden their presence in the Indian Ocean. The Indian Navy will act upon this development and acquire more weapon platforms to counter this threat. What Pakistan does not understand is that everytime it tries to pin India down, India rises to a new height leaving Pakistan even further behind.

    Pakistan is so addicted to aid that they needed Chinese financial assistance to develop the deep-sea port at Gwadar in western Pakistan, near Iran and close to the straits of Hormuz at the eastern end of the Gulf.

    Shamefully a Pakistani General has quoted, "China's growing presence serves to reinforce China's capacity and interests well beyond it's shores, and Pakistan, of course, is very keen to see the Chinese here."

    A country like Pakistan with dangerous public finances which are already forcing to hold back a planned purchase of three German submarines, China offers a cheaper option and long-term credit. India on the other hand is acquiring state-of-the-art submarines, stealth destroyers and frigates and also building a three carrier battle fleet to maintain the status quo of the most dominant force in the Indian Ocean Region (IOR).

    Swelling military orders at a time when Pakistan is suffering crippling power shortages might provoke domestic questions about the army's reluctance to embrace the austerity forced upon most of the country's 180m people. No matter how close Pakistan gets to China, it will never be able to compete with a giant like India who has made strides in areas like education, infrastructure, economic growth, military, etc. There has been not a single year which Pakistan has survived without foreign aid since it's formation in 1947.

    Defence News - Pakistan's Economy On The Brink Of Callapse
     
  2.  
  3. civfanatic

    civfanatic Retired Moderator

    Joined:
    Sep 8, 2009
    Messages:
    4,562
    Likes Received:
    2,526
    Location:
    తెలంగాణ
    Tell us something new, this is old news.

    By the way, take a look at this picture:
    [​IMG]

    Observe Hu's facial expression compared with Gilani's.
     
  4. Yan Luo Wang

    Yan Luo Wang Regular Member

    Joined:
    Dec 22, 2010
    Messages:
    169
    Likes Received:
    3
    What am I supposed to be seeing? And one picture on its own can never tell the full story.

    I think Pakistan should reduce military spending as a percentage of GDP.
     
  5. JBH22

    JBH22 Senior Member Senior Member

    Joined:
    Jul 29, 2010
    Messages:
    3,620
    Likes Received:
    2,390
    ohh who wrote this article kinda of overly patriotic author:)
     
  6. Blackwater

    Blackwater Veteran Member Veteran Member

    Joined:
    Jan 9, 2012
    Messages:
    21,005
    Likes Received:
    11,850
    Location:
    Akhand Bharat
    Pak don't spend. It gets in charity.Those days were gone where pak spends, now she gets (charity)

    Recently china promised 50 JF-17 luffender planes. freeeeeeeeeeeeeeeeeeeeeeeeeeeeee

    Am i missing something ????:confused::confused:
     
  7. Yan Luo Wang

    Yan Luo Wang Regular Member

    Joined:
    Dec 22, 2010
    Messages:
    169
    Likes Received:
    3
    The money that is spent on buying military hardware from overseas can be redirected into the country itself. Building up infrastructure, improving education and healthcare, basically investing in their own country.

    I hope Pakistan does not make the same mistake the USSR did, i.e. overspending on the military, without having a strong enough domestic economy to support it.
     
  8. Blackwater

    Blackwater Veteran Member Veteran Member

    Joined:
    Jan 9, 2012
    Messages:
    21,005
    Likes Received:
    11,850
    Location:
    Akhand Bharat
    Iam afraid pak is doing same mistake as USSR did. Economy is down.infrastructure is down.18 hours electricity cut in main cities and so..........on list is endless. 4 nuclear plants pak has are not meant to produce electricity but to make plutonium for nuclear bomb.

    Iam afraid your friend will not survive long...
     
  9. Yan Luo Wang

    Yan Luo Wang Regular Member

    Joined:
    Dec 22, 2010
    Messages:
    169
    Likes Received:
    3
    Predictions of countries collapsing, are as numerous as the stars in the sky.

    I very much doubt that Pakistan will dissapear off the world map.
     
  10. A chauhan

    A chauhan "अहिंसा परमो धर्मः धर्म हिंसा तथैव च: l" Senior Member

    Joined:
    Oct 10, 2009
    Messages:
    4,930
    Likes Received:
    4,564
    Location:
    Raipur
    Collapse of a country is not possible in this age i guess, but Pakistan will face a rebel in the near future, probably she will be divided again as she was in 1971.
     
  11. Blackwater

    Blackwater Veteran Member Veteran Member

    Joined:
    Jan 9, 2012
    Messages:
    21,005
    Likes Received:
    11,850
    Location:
    Akhand Bharat
    well, if not disappear, but weak and small. Imagine pak minus nukes, Baluchistan and NWFP. Road map is already laid
     
    Last edited by a moderator: May 24, 2011
  12. pankaj nema

    pankaj nema Senior Member Senior Member

    Joined:
    Oct 1, 2009
    Messages:
    3,454
    Likes Received:
    1,410
    Of course territories do not develop FEET and disappear .Land remains where it has always been .

    But Pakistan as a nation and as a functional state is surely WITHERING away

    pakistan will become a Toxic Jelly state

    When such hard times fall upon a country and you have INCOMPETENT leaders , Religious extremism , then it becomes a case of " FREE for all "

    Every group and individual is busy looking after their own interests
     
    Virendra and A chauhan like this.
  13. Blackwater

    Blackwater Veteran Member Veteran Member

    Joined:
    Jan 9, 2012
    Messages:
    21,005
    Likes Received:
    11,850
    Location:
    Akhand Bharat
    In cut short " CIVIL WAR". pak has all the ingredients to make this dish called " CIVIL WAR"

    USA will provide gas, Israel will provide chulla and India will provide Mirch Masala:becky::becky:
     
  14. satish007

    satish007 Senior Member Senior Member

    Joined:
    May 7, 2011
    Messages:
    1,458
    Likes Received:
    202
    Location:
    China

Share This Page