Pakistan Economy: Sinking Like A Rock, says Asian Development Bank.

Sinking like a rock: Slim chances of recovery for Pakistan’s directionless economy, says ADB

By Shahbaz Rana / Creative: Anam Haleem

ISLAMABAD: Amid deep-rooted concerns over a “directionless” economy due to failure of the previous government and inability of the caretaker setup to take immediate meaningful steps, the Asian Development Bank has warned that Pakistan’s current growth model is unsustainable that also undermines future prospects.

In its Asian Development Outlook, the Manila-based lending agency has painted an extremely bleak picture of Pakistan’s economy that is “directionless” and immediate recovery chances are almost nil amid a worsening balance of payments position.

“A difficult political situation stalled effective policy response to macroeconomic and structural problems, especially regarding energy, and the end of the government’s 5-year term in mid-March limited political scope for major policy or structural reforms,” it said.

The economic developments in this fiscal year are unfolding along broadly similar lines as previous year, but with “deepening concerns about sustainability and the adequacy of forex reserves”.

A missing link in the ADB’s analysis of political failures is the role of bureaucrats in running the affairs of the government who often do not disclose actual extent of problems to the leadership.

What happens when organized crime takes office? The rise of the mafia states

Mafia States – Organized Crime Takes Office

By Moisés Naím

The Rise of the Mezzanine Rulers

Michael Crawford and Jami Miscik

Governments across the Middle East and South Asia are increasingly losing power to substate actors that are inserting themselves at a mezzanine level of rule between the government and the people. Western policymakers must address the problem systematically, at both a political and a legal level, rather than continue to pursue reactive and disjointed measures on a case-by-case basis.

Indian budget projects economic growth

India’s government has unveiled its annual budget, saying that the economy is expected to grow at 9% in 2012.

Finance Minister Pranab Mukherjee said the growth rate for the current fiscal year was projected at 8.5%.

He said inflation would decrease over the next fiscal year – the current rate is 8.4%. But food price inflation, at 17%, “remains a concern”.

Mr Mukherjee promised action on food security and pledged an increase in social spending. …

Read more : BBC

Professional Beggars at their best … but .. Beggars are not choosers!

Vice President Joe Biden is the latest high level U.S dignitary to visit Pakistan. As the series of such high profile visits continues, one wonders what actually transpires in such meetings and what kind of assurances are given from both sides to each other. In this episode of Reporter, Arshad Sharif tries to find out what PM Gilani meant when he said that he has given assurances to Joe Biden that practical steps will be taken to resolve all the difficult problems.

Courtesy: Dawn News (program Reporter with Arshad Sharif)

Source- You Tube Link

Development of Sindh: Shallow Promises

– Mushtaq Rajpar

PPP ruled Sindh government is about to present third budget of their tenure. Be ready for new promises, pledges and schemes. Are you interested listening and read all that? What did Sindh government achieved in the current outgoing fiscal year 2009-10?

People of Sindh want to know. Can Sindh government publish a Development Review or Economic Review and inform the public on state of economy, development and projects announced last year in the budget.

Rs 113 billion were allocated for development, including Rs 16 billion by federal government. How much actually has been achieved?

Newspapers report suggest development funds were not utilized more than 42%. This is height of negligence and ineptness of an elected government. Sindh continues to live in backwardness; people live under hard socio-economic conditions.

Budget 2009-10

· Rs. 113 development out lay included Rs 75 billion ADP: Where did this money go?

· The federal government was to be asked to settled the issue of Rs204 billion arrears of GST on services. Did they get arrears back?

· Rs. 2 billion were allocated for Thar Coal Development