Saturday, January 28, 2012

BBC News - Is Pakistan's economy facing potential collapse?

BBC News - Is Pakistan's economy facing potential collapse?
... Critics of Mr Gilani say that in the face of his government's dismal economic performance, his upbeat statements show the government is either in denial or ignorant of realities.

"During the last four years, we have seen four governors change hands at the State Bank of Pakistan, four finance ministers, four finance secretaries, and five heads of the Central Board of Revenue," points out Dr Ashfaq Hasan Khan, a former adviser to Pakistan's Ministry of Finance.

A trader at the Karachi Stock Exchange
Mr Gilani came to office in 2008 amid turmoil on the world's financial markets

"The level of turnover in the government's economic team only reflects the inconsistency and confusion with which they have handled the economy."

But Pakistani officials insist that after a difficult patch, the economy is showing signs of bouncing back. Figures from the first six months of the current fiscal year show significant improvement in remittances and exports - mostly led by cotton crop production, which was much better than expected.

With foreign exchange reserves at about $16bn (£10.2bn), the government says it is optimistic that the economy will grow at a little less than 4% this year....

-bth: Pakistan has A-bombs but no economy or cash. Saudi Arabia could pick up a bomb on the cheap if they wanted if they haven't already.

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