A strange fallacy : A Rehman
Pakistanis love romancing fallacies. The latest fallacy is that the upturn in Pakistan’s economy is all due to the American wizard Mr. Shaukat Aziz, prime minister-in-waiting. It is the story of the dog walking under the dhobi’s cart and thinking he is pulling the cart.(couldnt say it better!!)
What changed the economic scenario in Pakistan? One, the 9/11 plane crashes that brought the World trade Towers to rubble had multiple effects. Secondly, because of this, all havala transactions were strictly monitored and the foreign exchange began to flow through the banks in Pakistan. Thirdly, with the anti-Muslim feelings most Pakistanis transferred their money to Pakistan. Fourthly, the US invasion of Afghanistan and Pakistan’s willingness to help US to destroy terrorism brought a big financial windfall such as loan write off and restructuring plus generous US grants swelled our foreign exchange reserves to US$12 billion including a few billions bought by the State Bank with their excess rupee liquidity from the foreign exchange dealers.
Can those who are singing the praises of Mr. Shaukat Aziz should tell the people of Pakistan why is there so much poverty and unemployment in Pakistan? What has US$13 billion foreign exchange done for the struggling impoverished middle-class? Why do international investing community consider Pakistan unfavorably?
Mr. Shaukat Aziz has served his masters well by increasing the defense budget to Rs. 194 billion add to this the hidden billions disguised in the civilian budget. He has served Punjab well by not completing the tax survey in Punjab. He has served well by increasing the profits for the Defense Saving Certificates to 10.8% and by reducing the profits on Special Savings Certificates to 6.9% thereby destroying the middle-class totally.
What is the true state of our country? Inflation has gone up to 8.5% as per government figures although it is in double digits. Wheat flour, the staple food of the common man has gone up by Rs. 10 to Rs. 12 per 5-kilo bag. The every day food requirements such as milk, vegetables, cooking oil and every thing else has shot up.
My countrymen, you make your decision about our American financial wizard and where he is leading us all to.
http://www.jang.com.pk/thenews/jul2004-dai...ed/newspost.htm
Full Version: A Strange Fallacy
QUOTE
He has served well by increasing the profits for the Defense Saving Certificates to 10.8% and by reducing the profits on Special Savings Certificates to 6.9% thereby destroying the middle-class totally.
Maybe he needs some lessons on economics. What this move signifies is that the GoP does not want people's money rotting in bank accounts but to come out in the market so that investment takes place. The more the circulation of money in the market, the better. They have also bottomed out because of the bank's interest rates. Thats a good omen so that the public are lured to borrow and invest further. Because of the lowering of interests there has been a quite substantial amount of domestic investment in especially the textile sector, engineering sector and heavy machinery. Thats the reason why our exports are increasing.
Obviously from more circulation of money in the market, inflation would increase. More supply, less demand. Inflation would increase. The SBP has already mentioned in its monetary policy for the next year that it would slightly increase interest rates so that inflation is kept in control.
If the alleged American agent would have wanted Pakistan in a sh*thole, he would have just borrowed and borrowed while giving the Pakistanis a false sense of security that inflation and everything is in control and after a few years it wouldnt take much time before Pakistan would have been in default and its poverty shooting up like there would be no tomorrow.
On a sidenote, Shaukat Aziz has increased the development oulay to 200bn Rs from 160bn Rs a year back. Support price for major agricultural products have actually increased in the past few years.
QUOTE(PakiPower @ Jul 23 2004, 09:25 PM)
A strange fallacy : A Rehman
Pakistanis love romancing fallacies. The latest fallacy is that the upturn in Pakistan’s economy is all due to the American wizard Mr. Shaukat Aziz, prime minister-in-waiting. It is the story of the dog walking under the dhobi’s cart and thinking he is pulling the cart.(couldnt say it better!!)
What changed the economic scenario in Pakistan? One, the 9/11 plane crashes that brought the World trade Towers to rubble had multiple effects. Secondly, because of this, all havala transactions were strictly monitored and the foreign exchange began to flow through the banks in Pakistan. Thirdly, with the anti-Muslim feelings most Pakistanis transferred their money to Pakistan. Fourthly, the US invasion of Afghanistan and Pakistan’s willingness to help US to destroy terrorism brought a big financial windfall such as loan write off and restructuring plus generous US grants swelled our foreign exchange reserves to US$12 billion including a few billions bought by the State Bank with their excess rupee liquidity from the foreign exchange dealers.
Can those who are singing the praises of Mr. Shaukat Aziz should tell the people of Pakistan why is there so much poverty and unemployment in Pakistan? What has US$13 billion foreign exchange done for the struggling impoverished middle-class? Why do international investing community consider Pakistan unfavorably?
Mr. Shaukat Aziz has served his masters well by increasing the defense budget to Rs. 194 billion add to this the hidden billions disguised in the civilian budget. He has served Punjab well by not completing the tax survey in Punjab. He has served well by increasing the profits for the Defense Saving Certificates to 10.8% and by reducing the profits on Special Savings Certificates to 6.9% thereby destroying the middle-class totally.
What is the true state of our country? Inflation has gone up to 8.5% as per government figures although it is in double digits. Wheat flour, the staple food of the common man has gone up by Rs. 10 to Rs. 12 per 5-kilo bag. The every day food requirements such as milk, vegetables, cooking oil and every thing else has shot up.
My countrymen, you make your decision about our American financial wizard and where he is leading us all to.
http://www.jang.com.pk/thenews/jul2004-dai...ed/newspost.htm
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Pakistanis love romancing fallacies. The latest fallacy is that the upturn in Pakistan’s economy is all due to the American wizard Mr. Shaukat Aziz, prime minister-in-waiting. It is the story of the dog walking under the dhobi’s cart and thinking he is pulling the cart.(couldnt say it better!!)
What changed the economic scenario in Pakistan? One, the 9/11 plane crashes that brought the World trade Towers to rubble had multiple effects. Secondly, because of this, all havala transactions were strictly monitored and the foreign exchange began to flow through the banks in Pakistan. Thirdly, with the anti-Muslim feelings most Pakistanis transferred their money to Pakistan. Fourthly, the US invasion of Afghanistan and Pakistan’s willingness to help US to destroy terrorism brought a big financial windfall such as loan write off and restructuring plus generous US grants swelled our foreign exchange reserves to US$12 billion including a few billions bought by the State Bank with their excess rupee liquidity from the foreign exchange dealers.
Can those who are singing the praises of Mr. Shaukat Aziz should tell the people of Pakistan why is there so much poverty and unemployment in Pakistan? What has US$13 billion foreign exchange done for the struggling impoverished middle-class? Why do international investing community consider Pakistan unfavorably?
Mr. Shaukat Aziz has served his masters well by increasing the defense budget to Rs. 194 billion add to this the hidden billions disguised in the civilian budget. He has served Punjab well by not completing the tax survey in Punjab. He has served well by increasing the profits for the Defense Saving Certificates to 10.8% and by reducing the profits on Special Savings Certificates to 6.9% thereby destroying the middle-class totally.
What is the true state of our country? Inflation has gone up to 8.5% as per government figures although it is in double digits. Wheat flour, the staple food of the common man has gone up by Rs. 10 to Rs. 12 per 5-kilo bag. The every day food requirements such as milk, vegetables, cooking oil and every thing else has shot up.
My countrymen, you make your decision about our American financial wizard and where he is leading us all to.
http://www.jang.com.pk/thenews/jul2004-dai...ed/newspost.htm
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It's because of chaotic cities like Karachi, poor natives get mug, imagine a white guy! Second and most important thing is corruption, it is sick, have you been to Peshawar!? Interest like hell, yup all those pashto mofos who are terrorist also like their jewish ancestors (they are descendants of one tribe of israel) are maaaaad interest loaners. Islamabad has nice business, I think we need to stabalize Karachi, but still if you stay at the rich parts its very very business-related.
Second most important things is for Pakistanis in foreign countries to give back, I can't say this anymore, illegal money transfers are unsafe and don't benefit the economy. I said it in another forum I am 15, but when I grow up I'm definately settling down in Pakistan with my Jew-ruling company
(Feds already knocking on my door)
Defense Saving certificate is not at 10.5 !! It is just .5 % highter than Special certificates !
Also he problem with inflation going higher is re-calculation of all our previously fudged accounts.
Earlier at least on paper our economy was quite balanced, however, inside it was all crap.
Also Shaukat Aziz is not American boy .. he is CITIBANK Boy .. now .. just like the Americans .. Pakistani's are fazed that CITIBANK is American .. it is not .. it is rather a SAUDI BANK .. hence, we should say the SAUDI Boy .. now the definition of boy .. he was not running CITIBANK but actually was the architect of the transfer of a sick American bank to Saudi's and than had brought it back to it's lost glory.
Hence, for me Shaukat Aziz is much more truly a SAUDI MAN.
Also he problem with inflation going higher is re-calculation of all our previously fudged accounts.
Earlier at least on paper our economy was quite balanced, however, inside it was all crap.
Also Shaukat Aziz is not American boy .. he is CITIBANK Boy .. now .. just like the Americans .. Pakistani's are fazed that CITIBANK is American .. it is not .. it is rather a SAUDI BANK .. hence, we should say the SAUDI Boy .. now the definition of boy .. he was not running CITIBANK but actually was the architect of the transfer of a sick American bank to Saudi's and than had brought it back to it's lost glory.
Hence, for me Shaukat Aziz is much more truly a SAUDI MAN.
True. He was the architect of transforming it from a bank with excessive bad loans to what it is today. The biggest shareholder Ahmed bin Talal Abdul Aziz holds 7% of Citibank's share. He probably has a 20 times returns on his investment already.
QUOTE(MoThSmOkE @ Jul 23 2004, 10:08 PM)
Maybe he needs some lessons on economics. What this move signifies is that the GoP does not want people's money rotting in bank accounts but to come out in the market so that investment takes place.
Wrong assumption, money deposited in the bank does just sit their and rot. It is invested by bank at an higher rate of return. So money in fact is invested in the market.
QUOTE(must7 @ Jul 24 2004, 01:24 AM)
Also Shaukat Aziz is not American boy .. he is CITIBANK Boy .. now .. just like the Americans .. Pakistani's are fazed that CITIBANK is American .. it is not .. it is rather a SAUDI BANK .. hence, we should say the SAUDI Boy .. now the definition of boy .. he was not running CITIBANK but actually was the architect of the transfer of a sick American bank to Saudi's and than had brought it back to it's lost glory.
Hence, for me Shaukat Aziz is much more truly a SAUDI MAN.
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Hence, for me Shaukat Aziz is much more truly a SAUDI MAN.
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Writer of the artice is calling him an American boy because Shaukat Aziz is an American citizen, he renouced his Pakistani citizenship and adopted American citizenship a long time ago. He is not calling him an American boy because of his citibank connection.
Also you gotta be kidding when you say Citibank is a Saudi Bank, Citibank is owned by American jews, American investment institutions, and mutual fund companies. Saudi prince owns share worth a couple of billion dollers in it, that would be less than 2% of a $220+ billion company.
Checkout the majoir ownership of citigroup at Yahoo finance page:
http://finance.yahoo.com/q/mh?s=C
One must note that inflation was in double figures before he came and he brought it down to single figures. You just can't pull a dumb critic article out and think he has figured everything out! The write obviously does not know much about economics.
Doosra, if I'm not mistaken, a Pakistani could not have dual citizenship of both Pakistan and US until very recently. So, obviously, Shaukat Aziz could no longer be a Pakistani 'citizen' when he got his US citizenship
QUOTE(Doosra @ Jul 24 2004, 12:15 PM)
Checkout the majoir ownership of citigroup at Yahoo finance page:
http://finance.yahoo.com/q/mh?s=C
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http://finance.yahoo.com/q/mh?s=C
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Doosra,
Nice link.
Rather surprised to find out that the Victor J Menezes, who happens to be an Indian, has made it Vice Chairman.
For those interested his profile is here.
Is this sufficient to term Citi an Indian bank? I think not, but then .........
dude, no more shaukat bashing, he gave up a multi-million dollar salary and a chance to become citibank president to become the finance minister of a shitty ass economy driving in his 1980s corola to work and back in a crappy ass house 
QUOTE
Wrong assumption, money deposited in the bank does just sit their and rot. It is invested by bank at an higher rate of return. So money in fact is invested in the market.
I was talking comparatively. However, money is well spent when its in the hand of its owners and there are chances or a higher rate or returns when just invested in bonds etc.
Shaukat is a Pakistani. If he turned into American, he would have had to renounce his Pakistani citizenship. He distinctively said in his interview he holds a Pakistani passports and a green card. He doesnt know when his greencard is going to expire.
Shaukat Aziz is the right man to lead Pakistan - good vision for the future, and also the right skills for a modern economy. The only problem is that he has inflated the GDP figures, and this may reduce his credibility in the international financial world.
QUOTE(Malikman @ Jul 24 2004, 04:45 PM)
One must note that inflation was in double figures before he came and he brought it down to single figures. You just can't pull a dumb critic article out and think he has figured everything out! The write obviously does not know much about economics.
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Malikman,
I am sure that like me Mr. A. Rehman, the writer of the letter, is an ordinary person who seemingly has only an earned Income from Employment which he spends in the daily living expenses of his family.
Please read the following :
GROSS DOMESTIC PRODUCT JULY 15, 2004 : PAKISTAN ECONOMIC SURVEY 2003-2004 : TABLE 1.1 PAGE 11 - GROSS NATIONAL PRODUCT AT CONSTANT FACTOR COST OF 1999-2000
I find the following For 2003-2004 in Millions of Pakistani Rupees :
- GDP AT FACTOR COSTS :……..4,144,319
- GDP AT MARKET PRICES..:…..4,445,805
- GNP AT FACTOR COSTS……....4,232,307
- GNP AT MARKET PRICES……...4,533,793
- POPULATION (MILLIONS)..:…..148.7
- PER CAPITA INCOME (MP):…..30,485
At the rate of USD 1 = Pakistani Rupees 58 and a Population of 148.7 Million the above figures give the following results :
GDP : USD 76.7 BILLION
GNP : USD 78.2 BILLION
Per Capita Income : USD 526
Since these figures are from the Ministry of Finance and are just a few days old could you please advise why they defer from the Official GDP figure of USD 95-100 Billion and an Official Per Capita income of USD 652.
Thanks in advance
Peace
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