Thursday, January 17, 2008

Musharraf on the Economy

Rejecting the charge that the Pakistani economy was in doldrums, President Pervez Musharraf Thursday said commodities of daily use were cheaper and wages higher here compared to India and Bangladesh.

He said that mutton was available in Pakistan at Rs.260 per kg, in India also at Rs.260, but at Rs.300 in Bangladesh.

He, however, did not clarify the currency he was referring to in case of India and Bangladesh. The Indian rupee and the Bangladeshi taka are higher in parity against the Pakistani rupee.

"The minimum salary of a labourer in Pakistan is Rs.4,600, in India it is 3,700 and in Bangladesh it is just 3,000," he said, again without specifying the currency in the two cases.

"Every one says that Pakistan's economy is in bad shape but it is not - see the difference. Our wages are much better than the countries in the region. I can't understand why the politicians are making statements on poverty in the country," he said.

-Goods cheaper, wages higher in Pakistan than in India: Musharraf

This is what the IMF says about the Pakistan's economy in its latest review;
The authorities’ policies for 2007/08 are in the right direction, but may not be sufficiently strong to put the external current account deficit on a clear downward path and achieve the inflation target. In particular, more concrete fiscal measures are needed to both support the current fiscal program and strengthen it to lower the deficit beyond the level envisaged in the budget. This could be achieved through a combination of revenue and expenditure actions, including by eliminating some exemptions and reducing subsidies, in particular energy subsidies. Attention should also be paid to any possible fiscal risks associated with the planned public-private partnerships.

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