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: 77

Comment

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

    Yom-e-Takbeer: US Efforts to Stop Pakistan Nuclear Tests in May, 1998

    "Believe me when I tell you that my heart is with you. I appreciate and would even privately agree with what you're advising us to do (abandon nuclear tests)", said Pakistan's Ex Prime Minister Nawaz Sharif to US …
    Continue

    Posted by Riaz Haq on May 28, 2020 at 10:30pm

    Pakistan's Computer Services Exports Jump 26% Amid COVID19 Lockdown

    Pakistan's computer services exports soared 26% in March, 2020 over the same month last year. This growth occurred in spite of the coronavirus lockdown that began on March 23, 2020. The nation's total services exports fell 17% in the same month.

    The ICT services exports bucked the overall down trend in Pakistan's exports. The country exported computer service…

    Continue

    Posted by Riaz Haq on May 17, 2020 at 1:29pm — 13 Comments

    © 2020   Created by Riaz Haq.   Powered by

    Badges  |  Report an Issue  |  Terms of Service