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    Yahoo!!! WB upgrades Pak. economy

    From PakDef

    ISLAMABAD, July 25 (AFP) -

    Pakistan could qualify for interest-free credit of up to 750 million dollars in the year to June 2002 amid signs the military government's economic reforms are working, the World Bank said Wednesday.

    A bank progress report said the regime of President Pervez Musharraf, who seized power in a coup almost two years ago, had made a "clear break from the past" in its efforts to bring the economy back from the brink of bankruptcy.

    For the first time in two years, Pakistan was "getting back on track", providing a basis for a "stronger operational engagement by the bank", the progress report said.

    The bank approved credit of 350 million dollars through the International Development Association last month, and another 300-350 million dollars was in the pipeline over the next 12 months, bank officials said.

    "The government's reform programme is comprehensive, and progress in implementation has established its credibility," the report said of the regime's strategy to stimulate growth, pare down debt and reduce poverty.

    "The pattern of growing corruption and deterioration of key public institutions has been arrested, and rapid progress is being made. This a clear break from the past."

    Military chief Musharraf toppled prime minister Nawaz Sharif in October 1999, a month after the International Monetary Fund (IMF) suspended its lending to the country because of its failure to honour economic commitments.

    Net public debt was more than 90 percent of gross domestic product, a third of the country's 140 million people lived in poverty and US-led economic sanctions, a response to 1998 nuclear weapons tests, had created a balance of payments crisis.

    But the bank said Musharraf's efforts to revamp the economy, restore the government's credibility and root out corruption were finally beginning to pay dividends.

    The IMF agreed to lend 596 million dollars under a 10-month standby arrangement inked in November last year, marking Islamabad's return to international financial circles.

    The government is now targeting "exceptional financing" of six billion dollars over four years from the IMF, the World Bank, the Asian Development Bank (ADB) and other bilateral donors, the bank's report said.

    The IMF is considering a much larger poverty reduction and growth facility once the standby arrangement is successfully completed, while the World Bank is due to put a new, long-term country assistance programme to its board in December.

    "The successful implementation of the (IMF) standby arrangement is essential to mobilize further support," the bank said.

    "Since the reforms challenge existing economic interests, a major risk is the commitment to the required pace and sequencing of macroeconomic and structural reforms."

    There is also risk of "some reversal" as the military government's term in office is due to end in October next year and "there is no clear indication of who will be the standard bearer of these fundamental institutional reforms."

    But the bank said one factor mitigating the risks was the "comprehensive and home-grown" nature of the government's economic policies.

    Through 2003-04 Pakistan will need more than five billion dollars to finance an adjustment programme that is expected to lead to a recovery of growth to about six percent after 2004 and an orderly payment of its external debts, the report said.
    http://sg.news.yahoo.com/010725/1/19pdr.html


    #2
    "The pattern of growing corruption and deterioration of key public institutions has been arrested, and rapid progress is being made. This a clear break from the past."


    This is a pretty significant success indeed. If the leviathen of corruption has finally been brought under control, then that is a historic achievment for this government. And it bodes well for the national infrastructure of our nation, truly demonstrating we have finally turned the corner. Now that corruption has been arrested the government must move to eradicate it as much it as possible. Slowly but surely we are getting there.

    Musharraf's efforts to revamp the economy, restore the government's credibility and root out corruption were finally beginning to pay dividends

    The pain has been great and the economic mismanagement of previous governments has been hard to arrest, but this government seems to have done it. Once it get's inflation and prices under control and more relief to the people, the benefits will be much more noticeable.

    There is also risk of "some reversal" as the military government's term in office is due to end in October next year...

    Not if the President assumes greater powers and the institutions like the Supreme Court and media are stronger. Then any future government will be under considerable checks and balances to maks sure it does not mismange the national economy and infrastructure as previous govrenments.

    Comment


      #3
      Not there yet...
      Miles to go before we sleep.

      Comment


        #4
        Yes, Pakistan's economy is finally on the right track, but it is just the begining. way to go before Pakistan's economy can become IMF free. http://news.bbc.co.uk/hi/english/wor...00/1456453.stm

        here is some details about Pakistan's economic team. http://news.bbc.co.uk/hi/english/wor...000/489365.stm
        There are only two forces in the world, the sword and the spirit. In the end the sword will always be conquered by the spirit. --Napoleon Bonaparte

        Comment


          #5
          ABDALI,
          Sorry man,...I didn't read this thread in hurry,..But,.I rather post my comments here than there.
          **************************
          Well at least we can see the Ray of hope now,..It about time to set everything right and look for future.
          °º¤ø,¸¸,ø¤º°`° ¤ø,¸°º¤ø,¸¸,ø¤ ºÂ°`°º¤ø,¸,¸¸,ø¤º °`°º¤ø,¸,¸¸,ø¤º° ºÂ¤Ã¸



          A Faith that cannot survive collision with the truth is not worth many regrets.

          Comment


            #6
            Excellent news.
            Truly great news.
            And on top of that we have a 250 dollar package from Saudi.
            And 70 mill from the ADB:

            ADB
            Link: http://www.dawn.com/2001/07/24/top3.htm


            Saudi
            Link: hmm can't find the link.
            But i read it like this week.
            When i find it i will post it.
            It was on the dawn.

            ------------------
            Our's not to reason why,
            Our's but to do and die:
            You can't fix stupid. So might as well troll them!

            Comment


              #7
              why all these happening after the summit?

              Comment


                #8
                Originally posted by rvikz:
                why all these happening after the summit?

                Good question!

                Comment


                  #9
                  Everyone loves Musharraf!!

                  Comment


                    #10

                    4 thumz up..


                    abhi rasta katta nahin...
                    abhi musafatein baqi hein...
                    abhi sehel nahin hayat saher
                    abhi mushkilain baqi hein


                    DerVaisH

                    ------------------
                    Alf Allah Chunmbay Di Booti...Mere Maan Vich Murshad Lai Huu..
                    Naffi Asbaat Da Paani Mallaya...Har Raggay HarJai Huu
                    [Sultan Bahuu]...

                    Comment


                      #11
                      Apparently a good sign...but shouldnt a better economy result in lower debts?

                      This upgradation by the World Bank is just their way of holding us hostage for a longer period of time.

                      What this results in is added debt for Pakistan. More debt means even more money to pay back. And that means weaker economy.

                      Getting loans means going round in circles. We need to start self-reliance. The fact that this 'encouraging news' comes from the world bank should tell us something. The world bank is not worried about Pakistan's economy. What they are interested in is finding someone who will draw loans from them, and then return them x2.

                      Pakistan should refuse further loans, and use its own resources. We have more than enough of them. We are willing to spend thousands of dollars to bring in a britisher to coach our cricket team because of the strategy and management expertise he brings, but we dont want to attract the same expertise in government management. Why? Havent we gone around in enough circles already?


                      [This message has been edited by Akif (edited July 25, 2001).]

                      [This message has been edited by Akif (edited July 25, 2001).]

                      Comment


                        #12
                        Originally posted by rvikz:
                        why all these happening after the summit?
                        Large economies don't just change over night its years of work that pays off.

                        Comment


                          #13
                          Originally posted by Akif:
                          Apparently a good sign...but shouldnt a better economy result in lower debts?

                          This upgradation by the World Bank is just their way of holding us hostage for a longer period of time.

                          What this results in is added debt for Pakistan. More debt means even more money to pay back. And that means weaker economy.

                          Getting loans means going round in circles. We need to start self-reliance. The fact that this 'encouraging news' comes from the world bank should tell us something. The world bank is not worried about Pakistan's economy. What they are interested in is finding someone who will draw loans from them, and then return them x2.

                          Pakistan should refuse further loans, and use its own resources. We have more than enough of them. We are willing to spend thousands of dollars to bring in a britisher to coach our cricket team because of the strategy and management expertise he brings, but we dont want to attract the same expertise in government management. Why? Havent we gone around in enough circles already?


                          [This message has been edited by Akif (edited July 25, 2001).]

                          [This message has been edited by Akif (edited July 25, 2001).]

                          Better economy better credit ratings means lower interest rates.

                          Comment


                            #14
                            Originally posted by Abdali:

                            Better economy better credit ratings means lower interest rates.
                            well, as mentioned in the initial post, this 'pat on the back' by the world bank is in anticipation of interest free loans for Pakistan. So interest rate is not even an issue. My point is, more loans mean more debt. Regardless of where u stand in the eyes of the WB, you are still dependent on them.

                            Comment


                              #15
                              Originally posted by Abdali:
                              Better economy better credit ratings means lower interest rates.
                              Too soon to jump in joy. It is like getting a newer credit card, when you are already drowning in debt.

                              Money lenders are basically in business to give you loan, so that you will pay some interest on it. When you pay more, they give more.

                              Simple credit lending economics.

                              Comment

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