Sunday, March 30, 2008

World Bank warns Pakistan economy may collapse

Economic threat to democratic transition

High Global Commodity Prices Impact Pakistan Economy;
There is not yet a crisis, but the economic picture for Pakistan is not good”, said Patel. “International prices have continued to rise, but policies and administered prices have not kept pace in Pakistan. During the past few years growth has been robust and there has been significant poverty reduction. There is a good economic foundation, but the growth can only continue if Pakistan adjusts to the new global reality, which includes high prices for oil, commodities and foodstuffs such as wheat. Countries around the globe – including the U.S., Japan and the EU are facing the same reality.”

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