Devalued PKR Hurting GNP

Byline: SHAMSUL GHANI Diplomacy is not just restricted to politics but its use in economics has also been increased. Once falling under the category of 'underdeveloped', third world economies are now referred to as 'developing' economies. But, CIA is not as diplomatic as IMF or World Bank. And of course, it is not expected to be so. The CIA World Factbook 2010 has described Pakistan's economic history in the following words: "Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment and declining exports of manufactures. Faced with untenable budgetary deficits, high inflation, and hemorrhaging foreign exchange reserves, the government agreed to an International Monetary Fund Standby Arrangement in November 2008. Between 2004-07 GDP growth in the 6-8 per cent range was spurred by gains in the industrial and service sectors despite severe electricity shortfalls. Poverty level decreased by 10per cent since 2001, and Islamabad steadily raised development spending in recent years."