Pakistan paid heavy price for supporting war on terror

Pakistan paid heavy economic price of $6 billion in 2007-08 for supporting war on terror, but what it got in return as Coalition Support Fund (CSF) was merely peanuts, said Dr Hafiz Pasha, heading a panel of economists in the Planning Commission, here on Wednesday. Speaking here at 24th annual general meeting of Pakistan Institute of Development Economics (PIDE), he said this loss to the economy was estimated on the basis of US model, which they apply in their own country.
"The loss to the economy, according to government, is over $8 billion", Pasha said, and added that the US should double the support fund to Pakistan. He said that the prevailing economic situation was not very positive as revenue generation is dismal; imports very high; real effective exchange rate is on the level of last year; and the ministries expenditure has increased by 22 percent.
About International Monetary Fund (IMF), Pasha said, its program focuses on stability rather than growth, which is not good for Pakistan in the long run. Pakistan had paid heavy price for stability at the cost of growth during the Musharraf era and should not repeat the same mistake. Talking to newsmen, Privatisation Minister Naveed Qamar said that environment was not conducive for privatisation owing to prevailing global economic meltdown, and the government was cautious to strike a right time.
He said that different options to resolve the chronic problem of Karachi Electric Supply Corporation (KESC) were being weighed, but the final decision would be taken by the regulator--National Electric Power Regulator Authority (Nepra)--regarding KESC future, he added.
About Etasilat, he said their issue of land with the provinces was almost resolved and they would pay soon the remaining $700 million.
A former Governor of State Bank of Pakistan, Dr Ishrat Hussain said that Pakistan has to pursue active monetary and fiscal policies to deal with the global financial crisis, which is affecting its economy.
Chairing Global Financial Crisis session, he said that the global financial crisis, converting into global economic crisis, was a unique phenomenon, and affected millions of people.
He said that the production and growth is faltering everywhere; people are losing jobs, resulting in poverty. He said that speed of damage was high and no one expected such crisis a year ago. He said that currently no one knows for how long this crisis would continue.
Chairing "Trade and Industry" session, Secretary, Ministry of Industries, Shahab Khawaja said that all the four papers have highlighted the problems being faced by the Pakistans industries.
He said that shortage of electricity, gas and skilled labour have been the major causes of less productivity in Pakistan, apart from security issue, lack of technology, research /development and marketing.
The morning session of the day two of the 24th annual general meeting and conference of the Pakistan Society of Development Economics included three concurrent sessions on different topics besides technical sessions.