The people of Pakistan voted for a democratic government in order to find a solution to their problem. It now appears that the new democratic government does not have the ability to solve the complex financial and economic problems of the country. The law and order situation in the country is at all time low and suicide bombings have become a common phenomenon.
The currency is shedding value against dollar with each passing day. At the time of writing this post the dollar was being traded in the open market at Rs.81 against a dollar. This is despite the steps taken by the central bank to regulate the price of dollar in the country. More than six months have passed and we have not yet seen any serious and sincere effort to find a solution to the economic woes of the country. The foreign exchange reserves have depleted to an extent where they are not even sufficient for one month’s import bill.
There are rumors in the country that some banks may collapse. This has created an air of extreme uncertainty in the country and people are reluctant to keep their money in banks. It is said that one foreign bank that has investment of from a large middle east group has collapsed and the news will be made public in a few days. If this rumor is true this will have devastating effect on the banking system in the country as people will resort to large scale withdrawals.
We are not seeing any change in the economic policies of the government. The lame duck prime minister is the new Shoukat Aziz in Pakistan. In fact he is worse that Shoukat Aziz. Shoukat Aziz had at least complete control on the economic policies of the country. Gillani does not seem to have any authority at all. He is the new “yes man” in Islamabad.
So the big question is if any thing has changed at all in Islamabad?
The people of Pakistan voted for a democratic government in order to find a solution to their problem. It now appears that the new democratic government does not have the ability to solve the complex financial and economic problems of the country. The law and order situation in the country is at all time low and suicide bombings have become a common phenomenon.
The currency is shedding value against dollar with each passing day. At the time of writing this post the dollar was being traded in the open market at Rs.81 against a dollar. This is despite the steps taken by the central bank to regulate the price of dollar in the country. More than six months have passed and we have not yet seen any serious and sincere effort to find a solution to the economic woes of the country. The foreign exchange reserves have depleted to an extent where they are not even sufficient for one month’s import bill.
There are rumors in the country that some banks may collapse. This has created an air of extreme uncertainty in the country and people are reluctant to keep their money in banks. It is said that one foreign bank that has investment of from a large middle east group has collapsed and the news will be made public in a few days. If this rumor is true this will have devastating effect on the banking system in the country as people will resort to large scale withdrawals.
We are not seeing any change in the economic policies of the government. The lame duck prime minister is the new Shoukat Aziz in Pakistan. In fact he is worse that Shoukat Aziz. Shoukat Aziz had at least complete control on the economic policies of the country. Gillani does not seem to have any authority at all. He is the new “yes man” in Islamabad.
So the big question is if any thing has changed at all in Islamabad?
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