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flute

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Pak on brink of bankruptcy
« on: October 10, 2008, 03:30:01 PM »

Is it good news or bad news for Us? should India help Pak if we can?

http://www.rediff.com/money/2008/oct/10bcrisis19.htm

Pak seeks $10 bn bailout from US, UK to avoid bankruptcy

Facing imminent bankruptcy, terror-stricken Pakistan has dispatched its top finance officials to Washington, London and other friendly world capitals seeking a lifeline of over $10 billion in emergency aid.

The mission to secure a six billion pound ($10.18 billion) bailout package is led by Shaukat Tareen, Pakistan Prime Minister's Finance Adviser and Shamshad Akhtar, the Governor of Pakistan's central bank, Daily Telegraph reported.

The Pakistani delegation is seeking an American and British-backed lifeline to tide over the current crisis.

US sub prime crisis spooks global economy
Oil-rich Gulf states have also been tapped to match Western funds with extra billions to ensure that Pakistan, which until recently touted itself as the 'next Asian Tiger', avoids a balance of payments crisis, the report said.

Tareen, a suave former banker, was appointed this week to spearhead the last ditch bid to avert the possible bankruptcy after it was revealed that state reserves had halved since democratic elections were held in March this year and a coalition government led by the Pakistan People's Party was formed.

"Tareen has given himself four weeks to salvage the economy. High oil prices have combined with endemic corruption and mismanagement to push Pakistan to the brink of bankruptcy," the report said.

Pakistan's middle class shifted massive amounts of capital overseas as a crisis of confidence in Pakistan's long term future took hold following the assassination of former Prime Minister Benazir Bhutto last December, it said, analysing the cause for the latest crisis facing the nation.



Facing imminent bankruptcy, terror-stricken Pakistan has dispatched its top finance officials to Washington, London and other friendly world capitals seeking a lifeline of over $10 billion in emergency aid.

The mission to secure a six billion pound ($10.18 billion) bailout package is led by Shaukat Tareen, Pakistan Prime Minister's Finance Adviser and Shamshad Akhtar, the Governor of Pakistan's central bank, Daily Telegraph reported.

The Pakistani delegation is seeking an American and British-backed lifeline to tide over the current crisis.

US sub prime crisis spooks global economy
Oil-rich Gulf states have also been tapped to match Western funds with extra billions to ensure that Pakistan, which until recently touted itself as the 'next Asian Tiger', avoids a balance of payments crisis, the report said.

Tareen, a suave former banker, was appointed this week to spearhead the last ditch bid to avert the possible bankruptcy after it was revealed that state reserves had halved since democratic elections were held in March this year and a coalition government led by the Pakistan People's Party was formed.

"Tareen has given himself four weeks to salvage the economy. High oil prices have combined with endemic corruption and mismanagement to push Pakistan to the brink of bankruptcy," the report said.

Pakistan's middle class shifted massive amounts of capital overseas as a crisis of confidence in Pakistan's long term future took hold following the assassination of former Prime Minister Benazir Bhutto last December, it said, analysing the cause for the latest crisis facing the nation.

A leading Pakistani private banker in Dubai, who has acted as handmaiden to the exodus, said the collapse and replacement of former President Pervez Musharraf's regime had amounted to a devastating double blow.

"Capital flight has got to be stopped if the country is to be turned around," he said. "But people take their cues from the leaders. The looters are back in charge and if they won't repatriate their money from Swiss bank accounts why should we keep our money in Pakistan?"

While Pakistan's economy has repeatedly been on the brink since independence in 1947, the stakes have never been higher, the report noted.

Pakistan's new President Asif Ali Zardari, Bhutto's widower, had hoped to raise a cash infusion at a 'friendly states' summit in the United Arab Emirates next month. But the economy has unravelled too quickly to wait, the report said.

"We have been here in the past but now Pakistan urgently needs balance of payments support," said the treasurer of a leading international bank in Karachi.

"We need some action this month."

Saudi Arabia and the conservative Arab monarchs have signalled their willingness to divert part of their sovereign wealth funds to shore up Pakistan. Gulf support will come at a price with the Emirates determined to ensure its own food security by buying up huge tracts of Sindh and Punjab provinces.

Islamabad will be expected to grant blanket exemptions on exports from its farms to the Gulf in return  an unpopular move when 25 per cent inflation has forced the poor to assemble in huge crowds for government subsidised wheat.


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prfsr

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Re: Pak on brink of bankruptcy
« Reply #1 on: October 10, 2008, 03:42:23 PM »

I replied to this - where did my post go?
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flute

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Re: Pak on brink of bankruptcy
« Reply #2 on: October 10, 2008, 03:59:33 PM »

I replied to this - where did my post go?
type it again..must have been lost somewhere in internet..atleast for this one, we can't blame Dex.
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cricinfo

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Re: Pak on brink of bankruptcy
« Reply #3 on: October 10, 2008, 04:07:24 PM »

I dont think any national economy going down is a good news in anyway..whether it is Iceland or Pakistan. You tend to feel that pakistani people will realise the real challenges facing them rather than going gung-ho on stupid religious issues, but stupid people will always remain stupid and they always look for new excuses to start another chaos...yesterday it was "insult of islam" ...today it will be "lack of taliban governance causing economic downfall" !! 
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Cover Point

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Re: Pak on brink of bankruptcy
« Reply #4 on: October 10, 2008, 04:10:33 PM »

I dont think any national economy going down is a good news in anyway..whether it is Iceland or Pakistan. You tend to feel that pakistani people will realise the real challenges facing them rather than going gung-ho on stupid religious issues, but stupid people will always remain stupid and they always look for new excuses to start another chaos...yesterday it was "insult of islam" ...today it will be "lack of taliban governance causing economic downfall" !!

well Iran's stock market is up 20% this year :)
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cricinfo

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Re: Pak on brink of bankruptcy
« Reply #5 on: October 10, 2008, 04:17:30 PM »

I dont think any national economy going down is a good news in anyway..whether it is Iceland or Pakistan. You tend to feel that pakistani people will realise the real challenges facing them rather than going gung-ho on stupid religious issues, but stupid people will always remain stupid and they always look for new excuses to start another chaos...yesterday it was "insult of islam" ...today it will be "lack of taliban governance causing economic downfall" !!

well Iran's stock market is up 20% this year :)

honestly speaking there is a tangential relation in greed-capitalism-liberalisation on regulations and this US economic screw up .

Irrespective of stock prices , Iranian economy is probably is in good shape mainly because of oil and stringent regulations.
For India I believe much more stringent regulations makes it less vulnerable to mistakes of greedy CEOs.
Iceland/Singapore are the most wealthiest countries, other than size liberal policies allowed that to happen - Today Iceland is bankrup, Singapore yesterday declared the country is in a recession(officially)
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