Provided by a contributor to Take Back Pakistan

Recent reports in the western media indicate that Pakistan needs as much as $10 billion to avoid an economic meltdown and Pakistan’s foreign currency reserves are:

• falling fast and if forward liabilities are included, the real reserves may go down to $3 billion. This cannot meet the import bill of one whole month*.
• Out of total reserves of $8.467 billion, the reserves held by the commercial banks stood at $3.461 billion on September 23. From September 22, the reserves fell by around $180 million, as there were no receipts while the government made heavy payments for oil and other imports.
• This week, Moody’s Investors Service lowered Pakistan’s credit outlook to negative due to the risk of “missed repayments” on the nation’s debt.

Pakistan’s “gradual economic decline, which started last year”, alarmed the United States and Britain as they feared that financial chaos could allow terrorists to deepen their roots in the country.

To avoid such an eventuality, they decided to launch a new group of donors.

Read more about our dismal state here: ‘Friends’ unveil initiative to avert collapse: Over $15bn needed

It is interesting to note that former President Musharraf inherited a far more fledgling Pakistan in 1999, a Pakistan which was on the verge of being declared a terrorist, bankrupt and a failed state. Musharraf inherited a Pakistan which had less than a billion dollars as foreign reserves, with an economy the mere size of $75 billion, and with 65% of our GDP used for debt servicing. Although currently our economy is fast deteriorating due to the incompetency of the new regime (who looted Pakistan in the past), the situation in 1999 was FAR WORSE than what it is now.

And despite not receiving the above level of support and commitment from the international community, Musharraf and his team were still able to deliver, with Pakistan’s situation improving prior to September 11, 2001. For example, Pakistan’s foreign reserves had risen up to $3.2 billion by September 10 2001.

To quote Dr.Ishrat Husain:

“In 1999, the ratio of foreign reserves held by India was 40 times that of Pakistan. “By June 2002 this ratio has declined to 8 times while the size of Indian economy is about 6 to 7 times that of Pakistan.”

Dr. Ishrat Husain goes on to say:

“It may be relevant to point out that the biggest quantum jump in our reserves had taken place between July 2000 and June 2001 i.e. well before September 2001. During this one year period the reserves increased by 138 percent to $ 3.1 billion. The rate of increase during July 2001 and June 2002 was 105 percent.”

Consider the improvement of a variety of indicators prior to September 11, 2001. We read:

“While acknowledging the salutary impact of the external account improvement, however, it is worth stressing that the trend improvement was visible well before the seminal September 11 events. Interest rates were already on the way down; foreign currency reserves were edging up; the exchange rate was relatively stable; the inflation downtrend was well defined, and the government’s continuing fiscal discipline and commitment to reforms had already set the stage for the IMF PRGF, and the subsequent re-profiling of external debt. Nonetheless, the pre-existing positive trends did gain invaluable momentum in FY02, post-September 11. However, despite these major positives, the economy was not unscathed in FY02.” Read more »

I quite enjoy listening to the members of parliament, both provincial and national, extol the virtues of the “democracy” that they have helped to restore in Pakistan. While its a great claim to make, what democracy have we been given for the votes that we have cast? As a nation, we have long demanded accountability and transparency from our government, but to this day, despite the many promises, our democracy is still hidden behind a shroud that only the privileged can see.

When we look at democracy in Pakistan, we should also look at the things that can be done without budgetary increases, long debates and foolish television appearances. The United States Congress publishes a Congressional Record for each day that the Congress meets. In this Congressional Record, there are all the debates, floor speeches, votes and voting by member, so that the American people can see their government at work. Additionally, these same Congressmen and Senators maintain regular office hours so that their constituents can drop in to discuss problems or concerns they have about government.

These same members are expected to maintain camp offices, that they regularly visit, to keep regular contact with the voters and gauge their feelings about government policy, reporting back to the member’s office. And, for those that just can’t get enough, there is the C-SPAN network that covers the activities within the US Congress, Senate, Committee and Sub-Committee meetings live for anyone to watch. Sure, when there are things of national security being discussed the cameras are off, but otherwise, the people are invited to take part in the government.

For their tireless work and never ending scrutiny for the public, these Congressmen and Senators are paid US$ 100,000 annually. The President of the United States makes US$ 250,000. Consider that for a moment.

If you do some digging, you will find that most functioning democracies work in a similar fashion, with similar good governance practices. These good governance practices allow the citizens of the respective country to understand the issues and problems that their country faces without the spin of the media and soundbites for explanations.

In Pakistan, the government doesn’t allow the people to be involved in the governing practice. Our responsibility in the Pakistani form of democracy is to attend the rallies, make the noise, get beat up and arrested by the police (if in opposition), and cast a vote. Usually, in that specific order. But why do the citizens of Pakistan not have any involvement in government after that? Because the politicians become rock stars after elections and no longer need the people until the awards ceremonies and the next time the box has to be filled.

Now, please don’t consider the nightly television dramas that pretend to pass themselves off as issue based talk shows as anything more than entertainment. Having watched many of these during numerous “crises” in Pakistan, it is blatantly obvious that their sole intent is to confuse the logical, strengthen the illogical and incite the illiterate. Hosts have no control over guests; guests make outlandish accusations that can’t be proven, but go unchecked or unchallenged. And shows that start with interesting topics end with nothing interesting being said. Read more »

This was sent to us by a contributor to Take Back Pakistan:

Monthly Salary                                                 Rs. 120,000 to 200,000
Expense for Constitution per month               Rs. 100,000
Office expenditure per month                         Rs. 140,000 
Traveling concession                                       Rs. 8/kilometre
Daily during Assembly meets                          Rs. 5000
Charge for 1st class (A/C) in train                   Free (For any number of times)
Charge for Business Class in flights                Free for 40 trips / year (With wife or P.A.)
Rent for Govt. hostel any where                      Free
Electricity costs at home                                  Free up to 50,000 units
Local phone call charge                                   Free up to 170,000 calls

TOTAL expense for a MNA per year                Rs. 32,000,000
TOTAL expense for 5 years                             Rs. 160,000,000
For 534 MNA, the expense for 5 years           Rs.  85,440,000,000 (more than 800 corores)

And they are elected by THE PEOPLE OF PAKISTAN, through a democratic process of this
world, not intruded into the assembly on their own or by any qualification. This is
how all our tax money is been swallowed and price hike on our regular commodities.
..Think of the great democracy we have