Economic boom a historic moment, says President

ISLAMABAD—The coutry’s economy witnessed resilience and turned-around during President Pervez Musharraf’s era which was a difficult and challenging period for the world economy in general and country’s economy in particular.
An official source in the Ministry of Finance told APP that many epoch-making events unfolded on the international and national scene impacted economies around the world, including Pakistan. He said that the last eight years have witnessed unprecedented drought in Pakistan (2000-01 and 2001-02) causing serious damage to crops, livestock and lower generation of electricity from hydel sources; the tragic events of 9/11 which changed the world altogether and put extra-ordinary burden of securiy-related expenditures.
He said broader adverse consequences for the economy as a whole; the events of December 13,2001 leading to the unprecedented massing of troops by India on Pakistan’s borders and seriously undermined Pakistan’s efforts of further fiscal consolidation; rising uncertainties in the run’ up to war in Iraq causing oil prices to rise sharply; unprecedented rise in oil prices from US $ 28-32 per barrel to over $ 90/barrel, putting serious strain on balance of payments, fiscal and inflation; smooth transition towards democracy as a result of October 2002 general election; the massive earthquake of October 8,2005 causing extensive damage to property, infrastructure, schools hospitals etc. and loss of over 70,000 human lives.
Notwithstanding these extra-ordinary events impacting global, regional and Pakistani economies, he said the last eight years have seen the economy gaining strength and its economic fundamentals improving with each passing day. He said that major economic achievements of President Musharraf during last eight years include: a strong economic recovery supported by equally strong domestic demand, reduction in unemployment, sharp reduction in poverty, reduction in fiscal deficit, a high double-digit growth in exports and imports, sharp reduction in country’s debt burden, remittances continue to maintain momentum and emerging as a major source of foreign exchange earnings, exchange rate remained stable, foreign investment rising sharply and demonstrating the confidence of global investors on Pakistan’s current and future prospects.
The official source also highlighted other achievements including successful privatization of state-owned enterprises; getting out of the IMF Programme ahead of time, re-entry of Pakistan in the international capital and equity markets, continuous improvement in credit ratings, and various indicators of living conditions of people showing marked improvement.
These achievements, he said must be viewed at the backdrop of major challenges that the economy of Pakistan faced by the end of the decade of the 1990s.—APP