You have to stand guard over the development and maintenance of democracy, social justice and the equality of mankind in your own native soil. [Mohammed Ali Jinnah]

Monday, March 31, 2008

How did the FE Reserves increase...

Source: Wikipedia
After nuclear tests were carried out in 1998, during the Sharif government, the United States and the North Atlantic Treaty Organization imposed economic sanctions on Pakistan.[30] When Musharraf came to power in the coup d'etat the following year Pakistan was expelled from the Commonwealth.[31] This initially compounded the economic problems, and many experts claimed Pakistan was a failed state, as it was close to bankruptcy and investor confidence was at an all-time low. After Musharraf promised support in the hunt for Osama Bin Laden, international sanctions were lifted.[32]

Musharraf then appointed Shaukat Aziz, a former Citibank executive, as finance minister.[33] World powers weighed in for debt rescheduling[34][35][36][37] to reward Pakistan due to the "war on terrorism", which helped in saving hundreds millions of dollars, in addition to securing new loans. As a result, foreign exchange reserves increased exceeding $16 billion in 2006, but at the same time foreign debt hit an all time high topping $40 billion.[38] The government claims that the economy has grown in several sectors and that per capita income of Pakistan has more than doubled in the last seven years.[39]

n the prev. govt. kept praisin itself for increased FE reserves... another thing not mentioned on wikipedia is the privatisation of public departments... tht sellin also contributed towards the increase in reserves.

Also see below whts the current state of foreign debt

Mr Zardari referred the question about economy and new government’s plan to deal with severe economic crisis to Ishaq Dar of the PML-N, who said that the party planned to share “the opening balance with people” and a detailed brief was being prepared.

He said that foreign loans had risen from $30 billion to $42 billion in a year and domestic loans had also touched a historic high.“The economic crisis is at its worst, but the coalition has evolved a strategy to deal with it.”
... taken from Dawn

Blogged with the Flock Browser

No comments: