Hafeez admits economy in bad shape

mayfair

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The black market is not completely owned by the Army or the elite, in fact small traders and govt officials are mostly involved in this. Pakistan doesn't have a white market truth be told.

Its cheaper to smuggle goods from other countries. Nobody has heard of Dabur Vatika and Bagpiper in Pakistan imho.
They are not directly involved in all of it but they make sure to get their bloody cut. Dabur Vatika was just an example but quite a few Indian goods are available in Pakistan especially liquor. Not all of this trade is technically black market since it's not smuggling per se rather import via hird ports such as Dubai and Singapore. This trade is largely in the hands of the so called Fauji foundation.
 

thakur_ritesh

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The sweetest and much better a revenge on Pakistan is to make sure they crumble economically. You don't fire a shot and they crumble internally leading to internal chaos. Let them become dprk of the indian subcontinent, least I care.

And it is happening at a rapid pace. In the year 2010 it is estimated near 36% of the Pakistani population was malnourished, inflation each year is pushing them back by many years, so what you have is a case where they take one step forward, but many backwards. This year their economy touched 210b usd mark, riding on huge inflation which was never officially communicated but can be seen from the fact that last year the economy was 175b usd and the real growth at just over 2%. Each year 10s of millions are being pushed back to rampant abject poverty, and no sign of inflation easing, it means even this year 10s of millions more will be further pushed down the poverty levels.

The good thing here is Pakistan spends (disclosed/undisclosed) anywhere between 26-30% of their annual budget on their military, then a near 40% goes to debt servicing and from the rest a big chunk ends up in private pockets, which means hardly any amount gets spent on the people of Pakistan and on their needs, and so it is not surprising to see the hopelessness is what a Pakistani faces each day.

One can sense the level of insecurity and nervousness where a month or two back kayani, the right wing political parties (JeI, PML-n, TeI) along with the terrorist organizations like LeT were all saying in the same breath that Pakistan's economy needs to be revived, and still their military will not stop from using a large chunk as military spending.

The key here is to understand that it has always been the better off, well to do, well educated Pakistanis who have been the most vocal critiques of india and schemers on how to create trouble in india, so if they cripple economically chances are there wont be as many thumping their chests, talking war and supporting terrorism directly in india, since they will be busy making ends meet.

The good thing this time is both the US and the KSA are pretty pissed off with them, so either PA/ISI does what they are dictated, else this is just the beginning of times to come, and this time there is the Baluchistan factor as well, US ambassador saying they have interests in that part is pretty clear a message to PA/ISI, things wont just stop on the economic front, so either they shape up or get shipped out, the latter is what one would like to see, let us see how it plays out but knowing Pakistanis, I wont be surprised if kiyani would be falling on the shoes of the americans.
 

Illusive

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No, I mean we must try to make them reliant on our economy then Mulla or Bulla wont need to fight us because they have MONEY to lose. Business is the only way to make them stop hateing us.
Why India when they have China?
 

Daredevil

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What's new? It has been known that Pakistani economy was in dumps. It seems the Pak finance minister just woke up from his sleep to realize this. It will be downhill from now on for the Pakistani economy unless there is more dole from its benefactors, which is unlikely, or more tax collection, which is also unlikely given the fact that majority of landlords in the Pakistan doesn't pay a dime as tax. Population explosion is just another variable that adds to this misery.
 

johnee

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What's new? It has been known that Pakistani economy was in dumps. It seems the Pak finance minister just woke up from his sleep to realize this. It will be downhill from now on for the Pakistani economy unless there is more dole from its benefactors, which is unlikely, or more tax collection, which is also unlikely given the fact that majority of landlords in the Pakistan doesn't pay a dime as tax. Population explosion is just another variable that adds to this misery.
The economy survived on dole out. This admission is, perhaps, the realisation that the dole out wont come(or not in same degree) as earlier because the donor nations' economy is in bad shape.

So, Hafeez, in essence, is saying that US economy is in bad shape and therefore, the their donations, that keep Pakistan afloat, may not come.
 
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This is a realization that has come after realizing they never had an economy to start with. The only reason this is a problem now is the higher ups will not be making money.
 

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