PakAlumni Worldwide: The Global Social Network

The Global Social Network

The recent political turmoil with Bhutto's return and her tragic assassination in Oct-Dec 2005 period is taking its toll on Pakistan's economy. Weaker textile exports, rising food prices, and ongoing energy crisis have caused the government to scale down its growth target for the fiscal year ending June 2008.

Immediately after Benazir Bhutto's death on Dec. 27, rioters from her native Sind province caused an estimated $1.3 billion in losses, according to Karachi's Chamber of Commerce. Power transmission, telecommunications and roads were affected. Among the recent issues exacerbating the larger energy crisis, the two main power transmission lines were blown up in January 2008 in Sind, creating a shortfall of 1,000 MW. The business community complained that lopsided and unplanned shutdowns resulted in closures in almost all industries. Many factories in Karachi, the heaving commercial hub -- including some owned by Colgate-Palmolive Co. and Philip Morris International Inc. -- sustained damage, according to Tasleemuddin A. Batlay, president of Karachi's American Business Council and a director of Colgate-Palmolive's Pakistan unit, as reported in Wall Street Journal. At Italian garment maker Maxco Pvt. Ltd., a fire engulfed several refurbished buildings, killing eight workers; damage was estimated at $25 million, according to a report in Wall Street Journal.

Pakistan's Finance Minister Salman Shah says economic fundamentals remain strong and growth should still exceed 6%, which would outstrip many of Pakistan's peers in Asia. Last year, the Karachi Stock Exchange's benchmark index advanced more than 40%.

Karachi share market on Monday started on a positive note on the back of foreign interest, coupled with increasing oil prices in the international market, and the KSE-100 index breached through 14,000 psychological level to hit 14,053.46 points intra-day high level, reports Business Recorder, Pakistan's Financial Daily.

The Pakistani economy has, so far, shown a lot of resilience in absorbing a number of shocks in the last few years. It is likely that there will be post-election violence in Pakistan regardless of the outcome. We'll have to wait and see if the economy can ride out this potential storm as well.

Views: 69


You need to be a member of PakAlumni Worldwide: The Global Social Network to add comments!

Join PakAlumni Worldwide: The Global Social Network

Pre-Paid Legal

Twitter Feed

    follow me on Twitter

    Sponsored Links

    South Asia Investor Review
    Investor Information Blog

    Haq's Musings
    Riaz Haq's Current Affairs Blog

    Please Bookmark This Page!

    Blog Posts

    Truth is Lived Not Taught

    Hermann Karl Hesse was a German born poet, author and painter. He believed that the deity is within a person, not in books or ideas. Almost all of his works explored an individual’s search for authenticity, self-knowledge and spirituality. He acknowledged publicly that the truth must be experienced, not just taught. His books included Siddhartha,…

    Posted by Sobia Anjum on October 21, 2019 at 4:30am

    Atoms Shoes: Young Pakistani Couple's Startup Gets $8.1 Million in Series A

    Atoms shoes, founded by a young Pakistani couple, has attracted $8.1 million investment, according to media reports. Atoms' investors include Silicon Valley based venture capital firm Kleiner Perkins and Reddit cofounder Alexis Ohanian.  It's the latest success in the…


    Posted by Riaz Haq on October 19, 2019 at 9:00am — 1 Comment

    © 2019   Created by Riaz Haq.   Powered by

    Badges  |  Report an Issue  |  Terms of Service