Officially, the central bank holds $8.14 billion (£4.65 billion) of foreign currency, but if forward liabilities are included, the real reserves may be only $3 billion – enough to buy about 30 days of imports like oil and food.
Nine months ago, Pakistan had $16 bn in the coffers.
The government is engulfed by crises left behind by Pervez Musharraf, the military ruler who resigned the presidency in August. High oil prices have combined with endemic corruption and mismanagement to inflict huge damage on the economy.
Given the country’s standing as a frontline state in the US-led “war on terrorism”, the economic crisis has profound consequences….
Corruption and mismanagement are so deeply woven into South Asian cultures that it’s hard to imagine how they can be excised. I read that the same is true in much of Africa. The tribe and the extended family all need a cut of any action; this is routine.
To those who think high energy prices and restricted supply are part of what is required to “save the planet,” here’s a look at who will be hurt. The US is being hurt, and so is Europe. But the people who will suffer most, perhaps starve and die, are the poor in the developing world.
But wait…I thought that Pakistan was a fervently religious society. I thought that they followed the precepts of Mohamed [peace be upon him]. I thought that they were so religious that they would willingly strap explosives on their children and send them out to kill the infidels.
I am SHOCKED, shocked I tell you, to hear that the religion of peace has so many corrupt followers in Pakistan. Oh what sad times are these when the Muslim faithful engage in corruption. When will the fatwahs be issued. Is there no Imam speaking out against this evil?
[/sarcasm]
Yes, #2, but in all fairness I must report that mostly-Hindu India next door is also corrupt and inefficient, and is also being hard-hit by energy shortages.
It’s not at all clear that either culture would look at the payouts required at all levels as dishonesty, actually. It’s part of the system, and they just accept that it happens.
“It’s not at all clear that either culture would look at the payouts required at all levels as dishonesty, actually. It’s part of the system, and they just accept that it happens.”
Just so. It [corruption] is part of the system. It [corruption] happens. Corruption is not viewed as immoral. That is rather a telling commentary on their respective religious systems, don’t you think? Not that “Christians” are perfect [quotes used because many are nominal Christians only]. They are not. However, Christianity condemns corruption in no uncertain terms. This condemnation has even been codified into our legal systems [so much for not legislating morality].
There is a difference. Taste and see that the Lord is good.
I’m not absolutely certain, #2 & #4, that the essential difference is religious in nature, much as I deplore both Islam and Hinduism as religious systems.
Even Europe, until about ten years ago, regarded price-fixing and payoffs of one kind or another as fairly normal parts of doing business, not only in developing countries but in Europe also. Many executives and companies have gone down under EU probes for activities which were quite usual before new EU regulations, related, really, to increasing business with NYSE-listed companies.
To make my #5 clearer: New EU regulations restricting corrupt practices were in great part related to efforts to comply with American ethics standards.
“It [corruption] is part of the system. It [corruption] happens. Corruption is not viewed as immoral” —Sick & Tired [#4]
Dear S&T;: I’m glad you take issue with that approach. Based on your comments about politics and current events, one might have thought you held similarly cynical views.
Dear Irenaeus #7, I don’t know enough about S&T;’s views to be able to determine if your comment is personally negative or not. I think it may be.
I recently made a flip comment which was misunderstood, so of course it’s possible that’s what is happening here.
“Based on your comments about politics and current events, one might have thought you held similarly cynical views.”
I hope that I have presented a consistent opposition to corruption. I am unaware of any compromise, regardless of party, in that regard. I would consider it a kindness if anyone would point out to me any of my statements that could be construed to support corruption, so that I might make amends.
Sick & Tired [#9]: You have never supported corruption. But your comments about U.S. government and politics seem extremely cynical—as though all or most policymakers were knaves. This is very much how Pakistanis and Indians would (with more reason) view their governments.
Katherine [#8]: I don’t mean to be flippant or personally disrespectful in #7. As I hope I made clear in #10, I saw a disconnect between #4 and the approach S&T;takes toward U.S. affairs.
I believe that cynicism (unintentionally) undermines the moral and practical basis for combatting unsound policies and practices. If “everybody does it,” then there’s no reason to get exercised about anybody doing it.