Pakistan Economy: News & Discussion

Neil

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^^Pakistan is an inconsequential state from the Indian POV. The state GDP of Maharashtra is greater than the entire national GDP of Pakistan, even though Maharashtra has a population of only ~100 million compared to ~170 million for Pak.
dude....Maharashtra is way too high to compare with pakistan....may be UP is perfect.....and guess what UP wins.....:emot15:
 

DaRk WaVe

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Pak, Iran and Turkey to launch freight train



LAHORE: The first freight train between Pakistan, Iran and Turkey will start operation on Aug 12.

"The Economic Cooperation Organisation (ECO) container train will be running between Islamabad and Istanbul through Tehran on the first Thursday of every month," an official of the ministry of railways told Dawn on Saturday.

The first trans-country and the fourth international train to be operated by the Pakistan Railways would be leaving Istanbul and Islamabad simultaneously.


The demonstration run of the freight train from Islamabad to Istanbul through Tehran began on Aug 14 last year. It will now start its return test run from Istanbul on Aug 2 and reach Zahedan on Aug 9. Afterwards, it will operate between the three cities.

At a meeting in Tehran in March last year, the transport ministers of the three countries had finalised modalities to run a container train between the three cities.

The test run on the newly-laid track between Kerman and Zahedan was carried out. The trilateral ministerial meeting discussed the possibility to also run a passenger train on the Islamabad-Tehran-Istanbul route.

"An ECO passenger train is already operating between Istanbul and Tehran and its service will shortly be extended to Ashkabad (Turkmenistan). The modalities to extend its operation to Pakistan are being considered," the official added.

The Pakistan Railways has been operating three international passenger trains – Samjhota Express between Lahore and Amritsar, Zahedan Mixed Passenger between Quetta and Zahedan and Thar Express on Karachi-Mirpur Khas-Zero Point route

Pak, Iran and Turkey to launch freight train
 

Rage

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The state of the Pakistani economy and public suffering in Karachi.


 
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ajtr

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Pakistan's aid-addicted economy needs reform


By SHAHID JAVED BURKI
LAHORE — U.S. Secretary of State Hillary Clinton's just-concluded visit to Islamabad — for the second session of the strategic dialogue that she and her Pakistani counterpart, Shah Mehmood Qureshi, launched in Washington earlier this year — brought some comfort to her hosts. The United States promised to provide $500 million of funding for several "highly visible" projects in Pakistan. This was to be part of the $1.5 billion allocated to Pakistan in legislation signed by U.S. President Barack Obama last year.



The day before Clinton arrived in Islamabad, the Friends of Democratic Pakistan met there. An earlier meeting of the group was chaired by Obama on the sidelines of the United Nations General Assembly session in New York last year. It was attended by then-Prime Minister Gordon Brown of Britain, the heads of the World Bank and the International Monetary Fund, and government ministers from several countries.

At the Islamabad meeting, the FDP agreed to provide financing for Pakistan's energy-development program, and requested proposals from the Pakistanis for the development of other sectors considered vital for the economy.

A few days before that, President Asif Ali Zardari paid his fifth visit to Beijing since taking office in August 2008 — this one a state visit — and received pledges of support for developing nuclear power and constructing a railway line over the Karakoram mountain range, linking the two countries. This would facilitate western China's access to the sea, via the Pakistani port of Gwadar.

These promises and pledges underscore Islamabad's growing dependence on foreign assistance, which is not surprising, given that Pakistan's tax-to-GDP ratio has declined to less than 9 percent, the lowest among the 22 largest emerging economies. They also suggest the continuance of a sort of moral-hazard approach to economic management that ensures foreign help whenever the country drives itself to the edge of an abyss.

Today, Pakistan is Asia's worst-performing economy. Its GDP growth rate of 3 percent is half that of Bangladesh and one-third that of India. And, while there is a good chance that this latest infusion of foreign money will help the country to pull out of a deep economic crisis, it will simply be history repeating itself. Pakistan does well when it receives large flows of foreign assistance, as in the 1960s, during President Ayub Khan's term in power; the 1980s, when Gen. Zia-ul-Haq ran the country; or the early 2000s, when Gen. Pervez Musharraf was in charge.

During these three periods of military rule, the country was able to align itself quickly with the U.S. In the 1960s, America wanted Pakistan to be on its side as it sought to contain the spread of communism in Asia. In the 1980s, the U.S. wanted Pakistan to help it force the Soviet Union out of Afghanistan. After the terrorist attacks of Sept. 11, 2001, the U.S. wanted Pakistan to help end Taliban rule in Afghanistan.

Now, for the first time, the U.S. is providing large amounts of assistance to a democratic government. Will this relationship help Pakistan get off the economic roller coaster it has been riding for the last half-century?

To ensure that its economy's performance is no longer dictated by the availability of foreign aid, Pakistan must undertake some fundamental restructuring. If carried out by a representative government, such economic reforms have a better chance of being sustained. On the other hand, there is no assurance that the right policies would be maintained if power once again passed to a military ruler.

The foreign governments that are currently engaging Pakistan should encourage its leaders to move forward on at least two related fronts: trade and better relations with India are crucial.

At independence more than 60 years ago, Pakistan had a larger trade-to-GDP ratio, owing in part to trade with India. That came to a sudden stop in 1949, as a result of the first of many trade wars that the two countries have fought.

Before 1949, India absorbed roughly 60 percent of Pakistan's exports and accounted for 70 percent of its imports. Nowadays, India accounts for less than 5 percent of Pakistan's total trade turnover.

This is contrary to what would be predicted by the so-called gravity model of trade, which is based on both the size of the trading partner and its distance. According to this model, China and India, not the U.S., should be Pakistan's largest trading partners. Thus, Pakistan should not devote so much of its energy to improving its access to the U.S. textile market, as it now does. Indeed, given competition from low-wage economies such as Bangladesh and Cambodia, Pakistan should abandon its focus on textiles altogether and expend much greater effort to develop its knowledge-based industries.

Another area of emphasis for donor dialogue with Pakistan is governance — not just reducing and controlling corruption, but also bringing policymaking closer to the people. Long stretches of military rule, with its emphasis on command and control, has left policymaking in Pakistan highly centralized. More power needs to be devolved to the provinces.

Today's democratic government has taken a step in this direction by amending Pakistan's constitution. The country's "friends" should encourage this effort, perhaps by requiring that the country's provinces be given a voice in their dialogue with Zardari's government.

Foreign donors must insist that Pakistan reform its economy in order to escape the moral hazard implied by continued dependence on aid flows. But that outcome is much more likely if democracy flourishes throughout the country.

Shahid Javed Burki, a former finance minister of Pakistan, and vice president of the World Bank, is currently chairman of the Institute of Public Policy, Lahore. © 2010 Project Syndicate
 

ajtr

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Flooded out
—Mujahid Eshai

We must thank the IMF for its immense 'contribution' and tell them to take a hike. Pakistan's priority today, more than ever, is to reconstruct and rehabilitate its people

Boots, shoes, whatever. Who cares? There are enough gigantic issues facing the country because of the seemingly unending deluge sweeping away everything that came in its way. The tales of woe notwithstanding, one has to earnestly start thinking about the rehabilitation and reconstruction of the affected. Local resources being non-existent, help in terms of money being nothing more than a trickle from donor agencies and countries worldwide because of the global recession, speculative estimates in terms of damage, without actual verification becoming a farce, the matter needs a team of leaders who can stand up and be counted upon. Do we have them? The answer, unfortunately, is in the negative. But at this moment, one's sympathies are with the prime minister who has to deal with all of this and more. Can he do it? Maybe, if he finally gathers a team that has the potential to deliver. The solutions will be tough and the old ways will have to be given up. Do our leaders have the capacity to move systematically seems to be the million dollar question. Only deeds will prove what they are capable of and what not.

In this time of immense crisis that has given rise to gigantic short- and long-term problems, certain matters need to be categorically and clearly stated. The first is that we must thank the IMF for its immense 'contribution' and tell them to take a hike. We should tell them and other such merchants of debt that they should forget what they have given us for a very long time, as Pakistan's priority today, more than ever, is to reconstruct and rehabilitate its people. Those who threaten us are welcome to do so but we have finally been made to understand our responsibilities and where they lie. They only lie with the people and economy of this country, as it has to be helped back onto its feet, preferably through self-help and proven selfless friends.

This country cannot do without a system of union and district councils, suitably empowered and monitored, as envisaged in the devolution of power programme given by the last regime. The members of parliament cannot deliver to the people what is required in such circumstances. At such times, the affected want their local leaders to be with them and attending to their woes. These people are part of the community and are also affected, whilst the MNAs and MPAs mind their own matters in the federal and provincial capitals. Whether it dilutes the perceived authority of the MNAs and MPAs or not, the local governments must come back at the earliest.

Because of our past reputation, there is hardly any 'friend' of Pakistan prepared to trust the government with hard cash. Most friends are looking for an agency that can be entrusted with funds to be genuinely spent in putting the people out of their misery. All government agencies are being bypassed in the process. Credible practices and behaviour need time to be established and transparency, honesty and good practices need to be seen to be followed. This has to be an opportunity for our government and leaders to turn over a new leaf.

The political and religious parties should stop the business of one-upmanship and mudslinging, and gather round with the federal government to chalk out plans about how to get back on track. At this time we need unity in thought and action. Let us not look at the armed forces as the messiah, as their hands are already full dealing with the war on terror even though they are doing more than what should have been expected of them in saving people, providing food, medicine and shelter to the dislocated. Where are the civil administration and its machinery? If the democratic forces in the country do not get together with the government at this critical time, then it will be obvious to all and sundry — if such evidence was still required — that they are incapable of governing and attending to the problems of the people.

Last, but not least, the government should immediately set up three widely constituted committees, one for strategising and planning relief efforts, second to attend to rehabilitation issues and a third for the reconstruction of swept away infrastructure. Enough experts with all kinds of skills are available within the country. Those with a proven record of achievement, regardless of colour, creed or political affiliation, should be taken on board. They shall have to determine 'out-of-the-box' solutions as demanded by the situation. And, finally, the government needs to immediately start working on an emergency budget, as the one announced earlier is no longer valid. The budget must incorporate facts that are staring us in the face: loss of infrastructure, time required to rehabilitate fertiliser factories, power plants and gas fields currently inundated, absolute decrease in tax revenues, shortages of various revenue earning and food crops, agricultural inputs, and providing people with food that they will not be able to afford at the extremely high prices it is likely to be sold due to actual, perceived and man-made shortages.

The situation today is such that if the government, political and religious leaders and the wealthy and well-to-do of this country do not come to the rescue of its ordinary people spread in all four provinces, it is extremely likely that a situation of such anarchy, looting and mayhem may be witnessed, the likes of which have only been read about in the annals of history. If we again go to the merchants of debt to provide us succour, we will be making a regrettable mistake. So, let us vow to stand up together and do for our people and our country what is expected of any civilised nation in this world. Let us show to the world that we are capable of honourably and successfully coming out of this natural disaster of immense proportions with our own efforts. Anyone wanting to assist, with no strings attached, will be welcomed.

The writer is a fellow and former president of the Institute of Chartered Accountants of Pakistan. He also served as a member of the Federal Ad Hoc Public Accounts Committee
 

nitesh

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the bundle of lies...........................

DAWN.COM | Economic & Business | The unpaid jobs

THE unemployment rate of 5.5 per cent for Pakistan looks satisfactory at the first glance, at a time when the United States has an unemployment rate of 9.5 per cent and some Eurozone economies have a joblessness rate of nearly 10 per cent.:emot112:

However, after examining how the unemployment rate was worked out, the lower rate of 5.5 per cent loses much of its charm.

As laid down in the Pakistan Economic Survey 2009-10, employment comprises all persons of 10 years age and above and who worked at least one hour during the reference period. From the above, it appears that the employed labour force statistics reported for a particular year may include workers who worked for a short period and were not employed throughout the year. However, one is not aware of the percentage of such workers in the total employed labour force.:emot0:

In addition, the employed labour force has been divided into four categories. These are employees, self-employed workers, employers and unpaid family workers.

First, employee has been defined in the Survey as a person who works for a public or private employer and receives remuneration in the form of wages, salary, commission, tips or pay in kind. Employees may be on regular paid basis with fixed salaries, casual paid employees, paid workers by works performed or paid non-family apprentices.

Second, a self-employed worker has been defined as a worker whose remuneration depends upon the profits derived from the goods and services produced. The rate of remuneration varies with the rate of profit.

Third, an employer has been defined as a person working during the reference period on his own account or with one or a few partners. Such employers have one or more employees on a continuous basis.

Fourth, an unpaid family worker has been defined as a person who works without pay either in cash or kind on an enterprise operated by a member of his/her household or other related persons. Workers falling into this category are 'just like the unemployed only worse-off', as described in the Survey, 2009-10.

The category of unpaid family workers becomes important, since the percentage of such workers is quite significant in the rural sector. In 2008-09, there were an estimated 12.70 million unpaid family workers in the rural sector out of a total employed labour force of 35.08 million. It means that 36.2 per cent of the employed workers in the rural sector worked without any remuneration for their work. This seems to be one of the main reasons behind the higher poverty rate in the rural areas.:emot100:

As compared to the above, there were an estimated 1.75 million unpaid family workers in the urban sector in 2008-09, out of a total employed labour force of 14.86 million. In this way, nearly 11.8 per cent of the employed labour force in the urban areas worked without remuneration. Thus, the remaining 88 per cent of the workers were gainfully employed as employees, employers or self-employed workers. The position in the urban sector was much better than in the rural sector.

The percentage of unpaid family helpers is, also, considerably higher in case of female workers. In 2008-09, 65 per cent of all unpaid family helpers were females. An overwhelming majority of such family helpers must obviously have been in the agriculture sector. The fact partly explains the weak financial position of the female population, particularly in the rural sector.

It may be asked as to why the unpaid family helpers have been shown as employed workers when they do not receive any remuneration. The answer may be that this is because such unpaid family helpers are, after all, helping in the effort to produce goods and services – although they are not receiving any wages for the time being.
:emot0:
As laid down in the Social Science Encyclopaedia edited by Adam Kuper and Jessica Kuper, employment – in the general sense – is the process of devoting human time and energy to production. It is the labour input to the economy and performance of work by people in an economic system. The term is extended by analogy to other modes of production, to cover self-employment and family-based production.

However, the Encyclopaedia goes on to say that, 'economists conventionally exclude unpaid domestic and voluntary services and remunerated activities such as crime, gambling or prostitution which are not considered 'productive'. In the same context, it has been further said that 'the corollary of employment being a productive activity is that it entitles the performer to income – wages in the capitalist mode'.

But, the problem facing our economic managers is that if unpaid family helpers are excluded from the list of employed workers, the unemployment rate will shoot up to unacceptable levels.
 

thakur_ritesh

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Pakistan's aid-addicted economy needs reform


By SHAHID JAVED BURKI

To ensure that its economy's performance is no longer dictated by the availability of foreign aid, Pakistan must undertake some fundamental restructuring. If carried out by a representative government, such economic reforms have a better chance of being sustained. On the other hand, there is no assurance that the right policies would be maintained if power once again passed to a military ruler.

The foreign governments that are currently engaging Pakistan should encourage its leaders to move forward on at least two related fronts: trade and better relations with India are crucial.

At independence more than 60 years ago, Pakistan had a larger trade-to-GDP ratio, owing in part to trade with India. That came to a sudden stop in 1949, as a result of the first of many trade wars that the two countries have fought.

Before 1949, India absorbed roughly 60 percent of Pakistan's exports and accounted for 70 percent of its imports. Nowadays, India accounts for less than 5 percent of Pakistan's total trade turnover.
reforms, yes, trade with india yes, but the most important thing, pak army needs to let the democratic process prosper and evolve for the better, and if they continue with their present attitude of running the affairs of pakistan with a face of the political parties on the front, which atleast for now is nothing more than a pseudo democracy or do a coup when they feel its the opportune time, then pakistan will never has a sustainable development model. people in pakistan believe their best interests are met by their army but if one was to have a closer look pak army is their worst nightmare.

reforms, pakistan is one of the most well reformed economies off all the indian subcontinent economies but still a india or a b'desh perform much better anytime of the year, attract much more FDI and foreign participation, and no the excuse of WoT is as lame as it could get. india faces innumerable insurgencies and bomb blasts happening in tier 1 cities which are enough to bog down and cripple india's growth to the growth rate levels of pakistan but then india did evolve a political system which was enough to take care of all such problems in a such a fashion that our economic progress was not hampered, and not that we reached this stage in a whisker, it took us a good 40(+) years to reach this level.

and about trade, all those fanatic paks who suggest trade with india at no cost and there would be no gain for them are as drifted away from reality off the miseries faced by the poor in their society who by the way now make more than 50% of pak population as per the recent WB data and are as clueless about economics as they could get, but then a country where the elites are ready to see their poor die than take any aid from india, from such inhuman beings you expect no better. but then as an indian i am really not complaining, they might as well go to hell if that is what they wish for!
 

Energon

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reforms, yes, trade with india yes, but the most important thing, pak army needs to let the democratic process prosper and evolve for the better, and if they continue with their present attitude of running the affairs of pakistan with a face of the political parties on the front, which atleast for now is nothing more than a pseudo democracy or do a coup when they feel its the opportune time, then pakistan will never has a sustainable development model. people in pakistan believe their best interests are met by their army but if one was to have a closer look pak army is their worst nightmare.

reforms, pakistan is one of the most well reformed economies off all the indian subcontinent economies but still a india or a b'desh perform much better anytime of the year, attract much more FDI and foreign participation, and no the excuse of WoT is as lame as it could get. india faces innumerable insurgencies and bomb blasts happening in tier 1 cities which are enough to bog down and cripple india's growth to the growth rate levels of pakistan but then india did evolve a political system which was enough to take care of all such problems in a such a fashion that our economic progress was not hampered, and not that we reached this stage in a whisker, it took us a good 40(+) years to reach this level.

and about trade, all those fanatic paks who suggest trade with india at no cost and there would be no gain for them are as drifted away from reality off the miseries faced by the poor in their society who by the way now make more than 50% of pak population as per the recent WB data and are as clueless about economics as they could get, but then a country where the elites are ready to see their poor die than take any aid from india, from such inhuman beings you expect no better. but then as an indian i am really not complaining, they might as well go to hell if that is what they wish for!
I don't think this is directly related to Pakistan being a non democratic nation; nor can India's economic success be attributed directly to democracy*. Pakistan did pretty well in the 50s** during dictatorship and did a whole lot worse in the democratic cleptocracy of the 90s. South East Asian economies especially that of Korea's prospered under not such democratic conditions. And today, China is the greatest example showing that democracy isn't necessary for economic development. On the other hand Indira Gandhi's policies brought about what is probably the greatest humanitarian crisis on the planet. One can also show time and time again how populist democracy and bureaucratic corruption has crippled India's economy and/or been directly responsible for the repeated failure to exploit prime opportunities. I often see columnists and pundits both here (in the West) and in India credit everything under the sun to democracy, along with politicians and heads of states who never fail to take credit for said democracy. This however is more of a political ploy to declare nominal superiority over China. In terms of the economy itself, I don't know if there really is a direct correlation, or certainly not as much as it is touted.

Economic rise in the developing world has had more to do with stability, sensible policy, inherent cultural factors and geopolitics. The reason Pakistan's economy is in shambles isn't necessarily because it didn't have democracy, but more so because it didn't have stability and it never initiated reforms right after independence. Military rule exacted a crippling effect not because it was autocratic, but because unlike the military regimes of Korea, Turkey or Chile, they simply had no clue how to sow the seeds or effectively cultivate a healthy economy. Despite all the accolades among the Pakistani masses, the Pak Army has been a horribly virulent entity that has been cruel to its people because of its own insecurities and through its ability to effectively exploit fear mongering for unscrupulous gains. Lastly, the military worsened the feudal structure by creating one extra social power class- the military class. Ayesha Siddiqa has done a very good job outlining how this class was established and how it has negatively impacted the economy and accelerated wealth disparity in rural settings. Pakistan also has inherent socio-cultural- environmental factors that have put it at a severe disadvantage (based on Jared Diamond's findings) and since independence the Pakistani establishment has done absolutely nothing about it. This again isn't directly related to military rule if one is to take the South Korean or Turkish experience, but rather lack of effective leadership. My point is, the Pak Army fails is not because it's a military organization, but rather because it's Pak Army- a terribly virulent organization.

What may possibly be attributed to the military is this nonsensical "strategic" culture, a factor that is often overlooked (including in the article above) when discussing the addiction to foreign cash injections (aid or otherwise). Since the dawn of time Pakistan's economic policy has relied heavily upon its self proclaimed "indispensable geo strategic importance" which was to be exploited to orchestrate a sudden cash windfall, just like what happened to the Arabs across the gulf. This geo strategic importance has been consistently used to attract benefactors by faking interest in their agendas and extracting rents whenever possible. Unfortunately the cash bonanza remains elusive, and instead, the blowback from fooling around with foreign agendas has been catastrophic. I don't know why people don't discuss how much of a negative impact this outlook has had on the economy and people of Pakistan. Now in all fairness it must be pointed out that democratic leaders too have been obsessed with this, so again, it's by no means a uni dimensional phenomenon. At no point in time did any elected leader get up and say 'forget this strategic crap; let's build an economy factory by factory and village by village. Every Pakistani leader to date, elected or not, has heavily indulged in this "impending" get rich quick fantasy.

*India's democracy has invaluable importance in many matters, and is arguably one of the greatest human achievements of the modern era. But it's benefits have yet to be merged with economic prosperity.

**Ayub tried his best to modernize Pakistan and encouraged privatization during his reign. Unfortunately this backfired for numerous reasons. But here too military rule itself wasn't a major
factor.
 

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Pakistan on the brink of economic collapse, says PML-Q

Islamabad, Jan 22 (IANS) The Pakistan Muslim League-Quaid (PML-Q) has said the country was 'at the brink of economic collapse' and that a turnaround was not possible unless peace comes to Karachi.
PML-Q president Chaudhry Shujaat Hussain and general secretary Mushahid Hussain Sayed, addressing a press conference in Karachi Friday, said they had handed over to the government a five-point list of things to do.
The list was, however, 'not a deadline', they said. 'We don't believe in deadlines,' Shujaat Hussain was quoted as saying by the Geo News.
'The issue of target killings is a very serious one which must be dealt with properly,' he said.
More than 60 people have lost their lives to violence in the first fortnight of 2011.
Mushahid Hussain Sayed added that corruption and target killings could be the main factors responsible for the country's economic collapse.
Shujaat Hussain said his party wanted the government to complete its five-year term and that the PML-Q does not want to derail the democratic system.
The two leaders also welcomed the tabling of the de-weaponisation bill in the National Assembly by the Muttahida Qaumi Movement (MQM).
Last year, over 1,300 people died in various incidents of target killing in Karachi, while the toll since 1986 is reported to be in excess of 10,000.

http://in.news.yahoo.com/pakistan-brink-economic-collapse-says-pml-q-20110121-232842-651.html
 

ajtr

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Pakistani business has bright spots, despite slowdown


—Muhammad Aftab

Of the 30 companies that made Pakistan-25, Lahore had the largest number with 12, followed by 10 located in Karachi. The top three companies were founded by three friends from a university and a Pakistani-American from the Silicon Valley

It is not a story of gloom and doom all the way. Despite slowdown and several negative economic indicators, Pakistani business has some bright spots. Entrepreneurship and foresight are leading the way for some of the best booming industries and businesses.

I call it a word of cheer. And, we as a nation need a lot of it. But, I must say, when businesses are coughing up big profits, corporate social responsibility requires taking care of the consumers too.

Pakistan's fastest track businesses attained a whooping average growth of 81 percent over three years, spanning 2007-2009. Remember these were the years when the world underwent a financial crisis, and most countries were hit by various degrees of severity. Pakistani exports had stagnated and declined, forcing lower output of a range of industries and reduced business turnover for many others.

Despite all that doom and gloom, Pakistan's Top-25, among others, showed not only resilience, but also posted big growth and profits. These companies are spread over high-tech business, telecommunications, textiles and agriculture.

This comes in 'Pakistan Fast Growth-25' part of 'All-World Network', which is operating in partnership with Harvard Business School led by Professor Michael Porter. The survey results were launched in Pakistan by JS Bank Limited this week.

The nomination partners for Pakistan-25 included the Federation of Pakistan Chambers of Commerce & Industry (FPCC&I), and Rawalpindi Chamber of Commerce & Industry among others.

Pakistan-25, as a group, broke All World records for high growth in eight nations located in South Asia, Middle East and Africa. These companies posted 81 percent annual growth during the three-year span of 2007 to 2009. The companies had an average employment of 400 individuals each. Since their establishment, these companies have generated a total of 12,000 jobs, according to the survey. The business leaders have an average age of 41 years. Some of the entrepreneurs are founders of other companies too. Several of the companies are serving both the domestic, as well as foreign markets.

Finance Minister Hafeez Shaikh says, "The power of the Pakistan Top-25 will discover new horizons for growth to quicken the pace of economic development, and to be a catalyst for transparency and progress."

Mr Kalimur Rehman, President JS Bank, has a word of praise for the Top-25. "The results, despite all odds, project the force and the sheer passion of their vibrant leaders. At JS Bank, we have always supported entrepreneurs and have taken initiatives that create a friendly environment within the entrepreneurship space. We are pleased to see our partnership with All World bring to frontline such amazing success stories of these compelling entrepreneurs."

Others, too, are all praise for the Top-25 leadership. Malik Ahmad Jalal, Pakistan Director for All World says, "Pakistani entrepreneurs have flourished in spite of some of the most restricting economic and security environments in the world. These dynamic men and women are a great resource and the best bet for Pakistan's future."

The survey is based on information from businesses in August last when all companies, across the country, were invited to apply for the ranking. Some 100 companies applied for a ranking in the Top-25. "Only the fastest growing private companies make the list. Each company is credentialed by All World, based on strenuous international standards," a survey official says. Thirty companies were credentialed for the survey.

Twenty-four companies, older than three years, made the ranking. Six "younger companies" moved to the listing of 'Companies to Watch'. Of the 30 companies that made Pakistan-25, Lahore had the largest number with 12, followed by 10 located in Karachi. The top three companies were founded by three friends from a university and a Pakistani-American from the Silicon Valley.

Leading Pakistan-25 as number one is Exceed (Pvt) Ltd of Islamabad, with a revenue growth rate of 1,350, repeat 1,350 percent between 2007 and 2009, the ranking shows. Sardar Hayat Mohammad Khan Mandokhel founded the company in 2004, at age 24 years. It is primarily a construction company, best known for Saidpur Model Village, Islamabad, that Exceed restored as an 18th century city-museum. Mr Mandokhel is the youngest entrepreneur on Pakistan-25. NayaTel, founded in 2004, has 500 employees, and ranks second on the list. NayaTel launched South Asia's first-fiber-to-the-home (FTTH) network in Islamabad in 2006. Arpatech, (Advanced Research Projects & Technologies) ranked third, was also founded in 2004 by Pakistani-American Jamal Khan who studied in the US and worked for five years with a leading Silicon Valley technology company. Employing 70 persons in Pakistan, it is "one of the most successful software houses serving companies all over the world. Its services range from application development to network security," the survey says.

What problems does Pakistan-25 face as a group? "The group's number one constraint is finding qualified mangers and employees," — the same as growing countries across the globe face. "Government and red tape is the second major constraint to growth," the survey reports.

But the group, and other entrepreneurs, have a good future in front of them. "The Pakistan-25 companies, led by dynamic men and women, represent the leading edge of a new approach to Pakistan's competitiveness," Professor Porter says. And, they have a future.

The writer is an Islamabad-based journalist and former Director General of APP
 

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Pakistan in deep economic mess, says Pakistani daily
Islamabad, Jan 23, (IANS) :

The economic policies being pursued by Pakistan are ''neither sound nor equitable'', a leading Pakistani daily said, adding that this ''is evident from the deep economic mess the country is in''.

An editorial in the Dawn Sunday said: "The macro economy is crumbling because of imprudent, opaque and unprofessional management of the country`s finances. The people are losing the battle against runaway price inflation because the government is not prepared to curtail its lavish spending and plug the leakages."

"The economic policies being pursued are neither sound nor equitable. This is evident from the deep economic mess the country is in. Growth remains elusive.

"...The quality of public education and healthcare is deteriorating by the day due to a lack of funding and the state`s abdication of its basic responsibilities. Ultimately, 180 million souls are suffering."

Putting this as the background to the latest "effort" at fixing the national economy, the editorial said: "The government is revising its budgetary targets for the current financial year. It will be the second `formal' revision of the budget in less than seven months after its approval."

"The budgetary plan was first revised following the summer floods, which were blamed for straining the government`s resources and spurring inflation. It was like saying that our finance managers and planners would have pulled the economy out of the deep quagmire if the floods had not hit the country."

The editorial wrapped up saying that the the new plan "may woo back global lenders and fetch the government a few billion dollars in loans/aid for the time being. But it will not solve the country`s economic problems. Nor will it mitigate the pain being felt by people burdened with high prices, let alone improve the quality of their life..."
 

Hud

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We might be debating about Pakistan's economy and how bad their conditions are. But the reality is that in Pakistan their quality of life is much better. And they don't have People like sharad Pawar.
 

warriorextreme

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We might be debating about Pakistan's economy and how bad their conditions are. But the reality is that in Pakistan their quality of life is much better. And they don't have People like sharad Pawar.
lol
price of almost everything there is double to triple than in india...have you not heard about certain some called zardari and his deeds?
 

Rage

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We might be debating about Pakistan's economy and how bad their conditions are. But the reality is that in Pakistan their quality of life is much better. And they don't have People like sharad Pawar.
That statement is factually incorrect. I'm hearing about stories from friends who've just come back from Pakistan, and even the middle-class have seen their incomes severely eroded, profit margins taken a beating because of the security situation, government facilities deteriorate and prices soar high for the aam Pakistani.

Karachi has more people sleeping on its streets than people in their homes. More people have lost their lives in the city of Karachi alone in the past year than all people in the Valley combined in the past two years. The northwest has crazy restrictions on business. The south has a lack of governance, growing poverty and extremization. And to top it all, the government has no money to initiate reforms because of the debate on taxes.

Meanwhile, the Prime Minister Geelani is giving speeches and testaments to how the economy is not that bad under him, focusing on the positives instead of the negatives, while the Central Bank is warning that the situation is even more grim than has ever been imagined.
 

gogbot

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We might be debating about Pakistan's economy and how bad their conditions are. But the reality is that in Pakistan their quality of life is much better. And they don't have People like sharad Pawar.
the security condition there is appalling , no city is safe from attack.
Rising ethnic violence , political unrest .

I really doubt they are enjoying superior quality of life as now.

To top it all of Pak has crippling power shortages.
And on top of that to pay for their international debts they have had to tax the wealthy heavily , combined with last years floods and food shortages.
The situation there is anything but.
 

ajtr

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Privatisation or bust?


ON Saturday, Pakistan Railways announced an increase in passenger fares and freight charges of between 10 and 20 per cent. The same day, the Planning Commission in a new report recommended an initial partial privatisation of the Railways. The problem is straightforward: Pakistan Railways is sinking. Mismanagement, underinvestment, overstaffing and a fare and route structure that is politicised and inefficient mean the entity is on the verge of collapse. Of course, the problem goes far beyond Pakistan Railways. In 2009-10, losses at Pepco, PIA, Railways, Pakistan Steel, NHA, Passco, TCP and Utility Stores added Rs245bn to the federal budget. Given the deteriorating fiscal situation, losses on this scale are simply unsustainable.

So what is to be done? Privatisation has many supporters, especially among economists and experts, but there are certain other realities to consider. Pakistan Railways alone employs 90,000, which makes it a grossly overstaffed organisation. But with inflation soaring, the economic slowdown widening and deepening and a weak government looking ahead towards the next election, lay-offs will be politically difficult. So trimming the fat from public-sector enterprises as a first step towards privatisation is unlikely. One of the ideas that is being pushed is restructuring the boards of public-sector enterprises to bring in professional and competent managers. But without revamping the powers of the boards and senior management, new faces are unlikely to make a fundamental difference. Meanwhile, jacking up fares, such as the Railways has resorted to doing, will not necessarily bridge the revenue-expenditure gap: one of the major problems facing the Railways is that passengers routinely avoid paying fares.

There are some out-of-the-box solutions available, however. PIA is an airline with massive debt and losses that show no sign of abating. Perhaps the `bad` assets could be parked in a separate account and some other international airline could be invited to run the feasible/profitable parts of PIA on behalf of the owners, i.e. the Pakistan government. By tapping international expertise, the viable portions of PIA`s business may at least be salvaged. Other innovative ideas could help rescue the other public-sector enterprises. At this point, so dire is the situation that even the more unusual of ideas should be given consideration. Imagine what even half of Rs245bn could do to improve the living standards of millions of Pakistanis.
 

ajtr

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Pakistan's remittance growth highest in world: SBP


PESHAWAR: Pakistan presently has the highest growth of remittances in the world which is the second largest source of foreign exchange in the country, a central bank statement said after a workshop on remittance initiatives on Wednesday.

The State Bank of Pakistan's Peshawar office arranged the day-long workshop with the help of Pakistan Remittance Initiative, a joint initiative of the central bank, overseas Pakistanis and finance ministries.

Participants set a draft of recommendations for further action in the field of remittance. More than 100 participants, comprising branch managers of remittance rich areas of the Khyber-Pakhtunkhwa, regional heads of banks and bank officers dealing in foreign exchange attended the workshop.

Owing to the importance of remittance for the economy, the banking industry was expected to focus this area on priority, the statement said.

Rising interest rate is seen as one of the main causes behind the recent increase in remittances, which grew by almost 17 percent to 5.3 billion dollars during the first half of the current fiscal year.
 

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