Terrorist Islamic Republic of Pakistan - September 15, 2009

Philip · Post by **Philip** » 12 Oct 2009 17:34

"What ye sow shall ye reap".Pak sowed the seeds of terror and the Paki military were the perpetrtators of 26/11 and now they have been paid back in the same coin by the very children whom they gave birth to and nurtured,the ungodly Taliban and Islamist fundamental forces.

If the Paki military think that they can use terror against India repeatedly to force India to compromise on Kashmir,they are dwelling in an opium den.Such hallucinatory experiences and dreams will turn into nightmares for them as their state disintegrates.This is where India should stand absolutely firm and resolute.If Pak plays dirty we should warn them that so can we...with a vengeance.It is past time to remove the dust covers over our covert ops and prepare to unleash the dogs of war to deal with the pigs of Pak.

Scumbags like Bull-Sh*t Bill Clinton,have the audacity to tell India to compromise on Kashmir with Pak so that our economy can grow 20%. Why can't he first tell Obama to compromise with Osama so that the USA can also grow and get out of its recession?! Clinton was the scumbag who turned a blind eye to the Sino-Pak nuclear nexus because of his scandalous relationship with a Chinese woman who was the daughter of a top Chinese intelligence general,plus alleged Chinese bankrolling of his election campaign.Clinton and the other swine of the State Dept. want a neutered India,castrated and militarily impotent,to be the slaves and workhorses of the west with its sweatshops and mercenary cannon fodder for their adventurism.Clinton has put his faith in the "martial" races of Pak as policemen of the region and its godfather the Chinese to be the overlord of Asia,in a division of the spoils for the 21st century.An independent India is anthema to this insidious conspiracy,where Clinton is pimping for China.He should be told that it is Mrs.Clinton who is now in charge of US foreign policy not womaniser Bill.

arun · Post by **arun** » 12 Oct 2009 17:37

shravan wrote:
SSridhar wrote:25 die in another blast in Shangla
Same as the fist blast as reported above; but death toll has rapidly risen.
Attack on Market in Pakistan Kills at Least 40

ISLAMABAD, Pakistan — A suicide car bomber attacked a military vehicle in a crowded market in northwest Pakistan on Monday, killing at least 40 people and wounding dozens more, police and hospital officials said.

The UK’s Telegraph is reporting that the perpetrator of the Shangla IED Mubarak was a 13 year old child.

:

Boy, 13, kills 41 in Taliban suicide bombing in Pakistan

Added later:

AFP reporting that the death toll of the Shangla IED Mubarak has climbed further and ow stands at 45:

Pakistan suicide bombing toll mounts to 45

Rishi · Post by **Rishi** » 12 Oct 2009 17:49

Makes sense. Brainwash a poor abdul, strap him to the steering wheel of a hatchback. Bolo ki, beta jao. Poor fellow.. too young to appreciate the allure of 72 or the politics he has been made a pawn of.

faraz · Post by **faraz** » 12 Oct 2009 18:10

sum wrote:5 SSG men killed to rescue 40 TFTA TSPA army men who are supposed to be soldiers themselves and should have finished the terrorists the moment external diversion by the SSG was created?

Pretty pathetic effort from the super-duper SSG...

Is it a part of Boy Scouts ? Super Scouts Group or something like it.....

alok_m · Post by **alok_m** » 12 Oct 2009 18:27

faraz wrote: Is it a part of Boy Scouts ? Super Scouts Group or something like it.....

More like Sorority Sisters Group. At the first instance of any real fight they start fainting if there is no path for downhill fleeing action..

SSridhar · Post by **SSridhar** » 12 Oct 2009 18:35

SSridhar wrote:
tsriram wrote:Pak court dismisses case against 26//11 accused Hafiz Saeed
“Anti-terror law does not apply to Saeed,” the high court said while dismissing the case.
The case against him was for the exhortation to jihad and for collecting funds by a banned organization. It would be interesting to see what the learned judge said about those two charges.

In BRf, we had said that Hafeex Saeed's line of argument would be 'jihad' was 'jihad al nafs' and not 'jihad al saif' and JuD was not banned at all.

From ToI

During the hearing, the counsel for the Punjab government acknowledged that the JuD was not in the list of banned terrorist groups. He said the JuD was only included in the government's watch list after the UN Security Council declared it a terrorist organisation last year.

After all, he was requested to stay indoors and the Pakistani President, Foreign Minister and the Interior Minister played out a drama just before the meeting with SM Krishna, by filing two FIRs for a speech he made three weeks earlier. Now that it is over, there is no need to even maintain the facade.

manjgu · Post by **manjgu** » 12 Oct 2009 19:04

as per Geo TV , 3 more SSG kommandus from the GHQ ops attained Shahdat in the hospital.. SSG toll keeps on going up !!

and as per Dawn, the suicide bomber in Shangla blew up a ammo truck in the convoy ( collateral damage) .. and so the damage multiplied. the chickens are coming home to roost

Gagan · Post by **Gagan** » 12 Oct 2009 19:22

The talibs have trained, indoctrinated several dozen barely into their teens suicide bombers. Some kids are as old as 9 or 10 years old, and spew 'Jihad' and 'death to the infidels' at the drop of a hat.
The poor kids don't even know what's going on.
All these kids are going to be consumed in suicide attack in pakistan mainly. Bad bad days ahead for the ideology and pakistan.

Hari Seldon · Post by **Hari Seldon** » 12 Oct 2009 19:46

Sri MK Badr kumar paddles and flails desperately trying to link Dilli to the Taliban offensive (against TSP). How commendable. NOT.

Pakistan warns India to 'back off'

New Delhi has the capacity to play a decisive role in crushing the Taliban insurgency, which is what makes the Pakistani military establishment extremely anxious in the developing political scenario on the Afghan chessboard. When the Taliban struck the Indian embassy in Kabul on Thursday, killing 17 people, the timing may have been coincidence, maybe not.

Vivek_A · Post by **Vivek_A** » 12 Oct 2009 19:47

looks like this slimebucket's lifafa placed in "the news" and sethi's rag was a waste...

shrill will be thrilled...

Pakistan’s ambassador in US to be replaced

ISLAMABAD: After strong criticism on the Kerry-Lugar bill in Pakistan, the government has decided to replace Pakistan’s ambassador to the US Hussain Haqqani and the announcement in this respect is expected within the next two days.

Well informed official sources have been quoted as saying that the country’s ambassador to the US would be appointed as a spokesman of the Presidency.

Sources said the announcement with regards to the replacement of Haqqani would be made within 48 hours. Hussain Haqqani is being replaced over the inclusion of some controversial clauses in the Kerry-Lugar bill.

The positions of the Spokesman Presidency Farhatullah Babar and the Pakistan Peoples Party Information Secretary Fouzia Wahab would also be changed, sources added.—Online

harbans · Post by **harbans** » 12 Oct 2009 19:59

^^ Zardari is being over ridden by the Gilani-Kiyani brigade. I'd heard some talk on maybe Kiyani being replaced because of his opposition to the KL bill. I somehow don't trust this Kiyani guy, he's much to status quoist which for the PA implies continuiation of it's terror doctrine. He's incapable of bringing change. Lets see what happens in Waziristan. Winter time may not be good for the PA..

Gagan · Post by **Gagan** » 12 Oct 2009 20:12

harbans wrote: I somehow don't trust this Kiyani guy..

Saar,
Understatement of the year I say.

I wonder which will kiyani choose.
1. To fade away just like Gen Mirza Aslam Beig, who decided to retire despite calls to take over the reins of power.
2. To lead a life of glory by taking over the reigns of power in la la land to errr, serve the nation.

My personal opinion is that Kiyani is preparing grounds for the latter, failing which he has to accumulate sufficient loot to peacefully retire. The protection that is being given to Musharraf is to follow and set the precedence of former dictators being protected to the hilt by the pak army as a tradition, because each pak crore commander worth his salt will need similar protection for his deeds when he retires.

amdavadi · Post by **amdavadi** » 12 Oct 2009 20:32

uncle has better plan for a*s **** kiyani. All kiyani has to do is blame everything on RAW agent mushi when he starts down.

harbans · Post by **harbans** » 12 Oct 2009 20:33

^^ Agree, thats why the KL Bill hurts Kiyani. He does not want to be the one under whose watch the military became subservient to the civil establishment. He'd be doing away with the Army legacy established over the decades. Only option left was to replace him and thats looking remote by the hour, specially with the Waziristan ops looming in the background. I remember i was wanting such a provision right after the Mumbai blasts to be incorporated as a pressure point in our dealings with Pakistan. But we did'nt. I too think that Kiyani won't go the Aslam Beg way. BTW when does his term expire?

surinder · Post by **surinder** » 12 Oct 2009 20:56

pgbhat wrote:Unhappy hours ---- Nadeem F Paracha
Did not see this posted.
In 2005, while traveling across Holland, Germany and France, the pangs and cravings for desi food struck me in the middle of a busy shopping district in Paris. Luckily, almost at once I was able to spot a restaurant whose doorman was dressed in a traditional Pushtun dress. I don’t exactly remember the name of the place,

Why does he not remember the name? Hint: The restaurant was not called "Pakistani xyz" restaurant, it was called under the name of a kufffar country. For if it was called under TSP name, it would be bankcorrupt in milliseconds.

Gagan · Post by **Gagan** » 12 Oct 2009 21:39

50-50 possibility this story is concocted. I mean the pakistani waiter and muree bear. The rest about Indian restaurant is likely true.
Old habit of inserting a false story within a true incident.

VikramS · Post by **VikramS** » 12 Oct 2009 21:50

If the TSPA/ISI decide to replace HH in DC, they will be striking a self-goal; another brilliant tactic with no strategic goal.

Whenever tempers rise up in DC, HH can act as a pressure diffuser since he can talk the language DC wants to hear even if the message is loss in translation by the time it gets to Pindi. Among all the TSP diplomats, past and present, HH is perhaps the only one who commands respect at the personal level.

For some reason TSPA believes that the rules of the game have not changed. HH probably sees something different in DC and is trying to limit the damage. But the TSPA seems to be unwilling to accept the new scenario.

Interesting times indeed. The TTP has declared war on the TSPA and it seems there is some surprise within the TSPA/ISI that most audacious attacks are coming from Souther Pakjabi base. It is very clear in Western Newspaper that the attackers at the GHQ were ex-TSPA.

Something dramatic is going to happen soon. I hope it is not directed at India.

Prem · Post by **Prem** » 12 Oct 2009 21:51

arun wrote:[The UK’s Telegraph is reporting that the perpetrator of the Shangla IED Mubarak was a 13 year old child. :

Boy, 13, kills 41 in Taliban suicide bombing in Pakistan

It is vey important to investigae that this 13 year old has gained maturity like the kids of Banu Quraiza tribe and did follow the rule with his special prayer for the 41 new travellers on the Highway to High heaven.

Mubarak ho Mubarak ho IED Ki Pak Ko, Hogi Aise IED to millenge Whoors Kisko?

Tamang · Post by **Tamang** » 12 Oct 2009 21:54

Pranay wrote:http://www.nytimes.com/2009/10/12/world ... ml?_r=1&hp

Some more details of the attack...

...................

When Brigadier Ul Haq heard shooting, he interrupted a conference he was conducting and went into the corridor with an aide, according to the relatives’ accounts. When he saw a man in military uniform with his back turned to him, the brigadier told him to flee, but instead, the man turned around and shot the brigadier, the relatives said.

Why flee? I mean he should have ordered him to take position or something like that.

sum · Post by **sum** » 12 Oct 2009 22:03

What other orders will a superior give to a junior in a army famous for downhill skiing?

Im sure the other common order going around GHQ at the time of the attack was to find the nearest burqa and dive into it...

shravan · Post by **shravan** » 12 Oct 2009 22:04

Explosion in govt. school in Hangu

HANGU: A massive blast has shattered a government building in Hangu here on Monday night but no loss of life was reported, Geo news said.

According to sources, a loud explosion damaged a government’s school building in Hangu but no group has claimed responsibility as yet.
--

Prem · Post by **Prem** » 12 Oct 2009 22:17

sum wrote:What other orders will a superior give to a junior in a army famous for downhill skiing?

Im sure the other common order going around GHQ at the time of the attack was to find the nearest burqa and dive into it...

Poor SDRE still dont understand , taking position in Paki Army Parle means onlee one thing .. GUBO

Gagan · Post by **Gagan** » 12 Oct 2009 22:35

"Pojison ikhtiyar karen"

Indeed all hell must've broken loose in GHQ. Most people would have been unarmed. The Pakfauj afsars must have been busy planning the next atrocity in India or against the US forces in Afghanistan no doubt. These geezers who are responsible for the death of so many countless innocent people, felt the heat for a few hours, well worth the wait.
I for one can actually see the divine wheels of Justice coming a full circle in my lifetime. The pakistani intelligence officers deserve well what's coming to them from the snakes they helped raise and target the countless innocents all around the world.

Purush · Post by **Purush** » 13 Oct 2009 00:21

After reading one of Johann's posts in the ME thread, I googled for info about Juhayman al-Otaibi. I'd heard of the Grand Mosque seizure previously, but didn't know that this Beard was the mastermind. Anyhow, wikipedia throws up some interesting but conflicting info...which one is closer to the truth?

http://en.wikipedia.org/wiki/Juhayman_al-Otaibi

The Grand Mosque Seizure lasted three weeks before Saudi Arabian special forces attempted to break into the Mosque. They employed many methods to break down the doors of the Mosque, including tanks, but failed in the end due to the doors' strength. The Minister of Defence, Prince Sultan, finally called the Pakistani Army to handle the situation. As a Muslim country, Pakistan was eager to offer help. It was General Zia-ul-Haq at that time who directed the Pakistan Army and who finally captured the mosque with the help of French paramilitary forces. Some theories suggest that Egyptian Special Forces were used as well. Upon entering the mosque, it was full of dead bodies and waste. The fleeing rebels tried to escape through water tunnels around the mosque, which were then flushed with water to bring the rebels out.

So the Bakis have had the pleasure of shooting up their own holiest of holy sites?

or

http://en.wikipedia.org/wiki/Grand_Mosque_Seizure

Confusion reigned at the field command, where several senior princes, the heads of the armed forces and military attachés from France and Pakistan gave contradictory advice. In the middle of the day, Sultan ordered helicopters to lower troops on ropes directly into the courtyard in the center of the mosque, which turned out to be a suicide mission. At this point, King Khalid appointed Turki head of the operation.[15]

On November 25, the Arab Socialist Action Party - Arabian Peninsula issued a statement from Beirut alleging to clarify the demands of the insurgents. The party, however, denied any involvement of its own in the seizure.[16]

Lawrence Wright reports that only three Frenchmen were called in, members of the highly trained GIGN counter-terrorism unit. Because non-Muslims are not allowed in the holy city, they converted to Islam in a brief formal ceremony by Saudi religious leaders.[17] Saudi officials deny the French actually entered Mecca. According to Wright, who interviewed Saudi officials, flooding and electrocuting were dismissed as impractical and lethal to the hostages, but an attempt to subdue the resistance with non-lethal gas failed also. Grenades were dropped into the chambers through holes that were drilled in the mosque courtyard, and, more than two weeks after the revolt began, "the surviving rebels finally surrendered." [18]

Sanjay M · Post by **Sanjay M** » 13 Oct 2009 00:51

Pak Drops Cases Against Lashkar Leader Saeed

Will Unmanlymohan Singh now wag his ineffectual finger yet again, and say that "India Will Not Bow to..." this or that, for the umpteenth+1 time?

Ameet · Post by **Ameet** » 13 Oct 2009 01:42

Pakistan's nuclear bases targeted by Al-Qaeda

Pakistan's nuclear weapon bases have been attacked by al-Qaeda and the Taliban at least three times in the last two years, it has emerged.

http://www.telegraph.co.uk/news/worldne ... Qaeda.html

In a paper for the respected anti-terrorism journal of America's West Point Military Academy, Professor Shaun Gregory, director of the Pakistan Security Research Unit at Bradford University, detailed three attacks since November 2007 and raised the spectre of more incidents in the future.

He said militants had struck a nuclear storage facility at Sarghoda on Nov 1 2007; launched a suicide bomb assault on a nuclear air base at Kamra on Dec 10 2007; and set off explosions at entrance points to Wah cantonment, one of Pakistan's main nuclear assembly plants, in August 2008.

These attacks had been launched despite an extensive security cordon around the facilities and millions of dollars in American technical aid to prevent militant infiltration.

Dr Anupam Srivastava, director of the Centre for International Trade and Security at Georgia University, who has advised the US government on nuclear security issues, told The Daily Telegraph he believed there had been more than three attacks on Pakistan's nuclear facilities and the Taliban and al-Qaeda militants would intensify its assaults.

Ameet · Post by **Ameet** » 13 Oct 2009 01:46

State Dept. split over aid to Pakistan

http://www.usatoday.com/news/world/2009 ... -aid_N.htm

Lalmohan · Post by **Lalmohan** » 13 Oct 2009 01:52

purush, i hadn't come across the pakistani connection before, only the french one. also the surviving rebels were beheaded afterwards
ofcourse the rebellion was caused because they didn't think that al saud was being pious enough, but then post rebellion, the piousness only increased further

Rangudu · Post by **Rangudu** » 13 Oct 2009 04:28

It appears that the prime accused in the GHQ attack - "Dr." Usman was actually in police custody since last year for the Marriott attacks case.

Dec 10, 2008

Arrest warrants of Marriott blast POs issued

Our correspondent

Rawalpindi: An anti-terrorist court (ATC) Rawalpindi issued arrest warrants and ordered confiscation of property of all the proclaimed offenders, allegedly involved in Marriott suicide attack here Friday. Four accused Hameed Afzal, Dr Usman, Rana Ilyas and Tehsinullah Jan allegedly involved in this case were present in the court during the hearing. The court adjourned further hearing of the case till January 1, 2009. Secretariat Police Station registered the case against accused for their alleged involvement in suicide attack at Marriott in September 20, 2008. Police arrested four accused allegedly involved in this case while other three accused could not be arrested yet. The court declared them proclaimed offenders and issued their arrest warrants and ordered to confiscate their property.

So how come this man is able to lead an attack now?

He must have been released by the ISI for this purpose.

putnanja · Post by **putnanja** » 13 Oct 2009 04:56

‘ISI officer’ electrocuted in Delhi, body taken to Pakistan

M K Afridi, political counsellor at the Pakistan High Commission and believed by Indian intelligence officials to be a senior ISI staffer, died of electrocution at his home in Vasant Vihar, south Delhi, on
...
...
Police said Afridi, 47, had gone for a bath after returning from work on Sunday night. Judging by the way his body was found, it appears he was blow-drying his hair when the electric dryer short-circuited, officers said.

Afridi’s wife found him in the bathroom with his hands charred, holding the dryer. She disconnected the machine and immediately rang a mission official, who rushed Afridi to Fortis Hospital in Vasant Kunj. He was declared dead by doctors at the hospital at 10 pm.
...
...

SSridhar · Post by **SSridhar** » 13 Oct 2009 05:05

SM Krishna reacts to Saeed's release

“Our talks with the Pakistan Foreign Minister [Shah Mahmood Qureshi] was somewhat on this line that formal investigation would be done on Hafiz Saeed with reference to Mumbai,” Mr. Krishna told journalists while referring to his meeting with Mr. Qureshi in New York on the sidelines of the United Nations General Assembly last month.

Prem · Post by **Prem** » 13 Oct 2009 05:07

Half Massa paying Child Support for Illgetinmate Son

http://www.brecorder.com/index.php?id=9 ... =&supDate=
$1 billion pledges: Japan says use our taxpayers' money transparently
PEER MUHAMMAD & SEHRISH WASIF
ISLAMABAD (October 13 2009): After the United States, Japan also pressed Pakistani government to ensure transparent and effective utilisation of its $1 billion assistance pledged during the Tokyo conference in April 2008. The emphasis was made at a meeting of visiting Foreign Minister of Japan Katsuya Okada with his Pakistani counterpart Makhdoom Shah Mehmood Qureshi here on Monday.

This was the first foreign visit of the Japanese Foreign Minister after assuming charge in the new government of Japan. Giving briefing to media, Kazuo Kodama, the spokesman of Japanese Foreign Minister quoted his foreign minister as saying "His country sees complete transparency and effective utilisation of the Japan's taxpayers' money as being given to Pakistan under the pledges made at the Tokyo conference." He said that $1 billion assistance is not a small amount coming from the pockets of the people of Japan, which should be spent in a transparent and efficient manner.
He said Pakistan's leadership assured Japan to spend the money in transparent manner. He said his country acknowledges the role of Pakistan in the counterterrorism and assured Japan's support in overcoming the challenges including terrorism, economic and energy crisis being faced by Pakistan. "Japan hopes that people of Pakistan will overcome the difficulties and his country would reinforce its assistance to Pakistan for counterterrorism and socio-economic development of its people

harbans · Post by **harbans** » 13 Oct 2009 05:34

I had warned you for using that term for the PM two days ago. Banned.

I'd put up many days ago a suggested conduct code, that wouldn't realize in these sort of bans. Specially those that arise out more of frustrated statements. It was rubbished.

Anyways who am i small man. I even don't know what term Sanjay used. All i know he contributes more on the scientific portions on these forums. I don't even know him. Just read his posts. And i liked many of them

Gerard · Post by **Gerard** » 13 Oct 2009 05:54

Pakistanis say U.S. hoards intelligence

Suraj · Post by **Suraj** » 13 Oct 2009 06:23

Moderation note: Sanjay M was banned because he accumulated 3 warnings, and ignored multiple entreaties to tone down his language against the PM. It is standard policy to provide a one-month ban in such circumstances.

It is possible to be mature enough to be critical of our leadership without resorting to childish or immature language or namecalling, regardless of how frustrated you are.

If you have any comments, please post it in the feedback thread, not here.

thanks
Suraj

ArmenT · Post by **ArmenT** » 13 Oct 2009 09:00

Purush wrote:After reading one of Johann's posts in the ME thread, I googled for info about Juhayman al-Otaibi. I'd heard of the Grand Mosque seizure previously, but didn't know that this Beard was the mastermind. Anyhow, wikipedia throws up some interesting but conflicting info...which one is closer to the truth?

http://en.wikipedia.org/wiki/Juhayman_al-Otaibi
The Grand Mosque Seizure lasted three weeks before Saudi Arabian special forces attempted to break into the Mosque. They employed many methods to break down the doors of the Mosque, including tanks, but failed in the end due to the doors' strength. The Minister of Defence, Prince Sultan, finally called the Pakistani Army to handle the situation. As a Muslim country, Pakistan was eager to offer help. It was General Zia-ul-Haq at that time who directed the Pakistan Army and who finally captured the mosque with the help of French paramilitary forces. Some theories suggest that Egyptian Special Forces were used as well. Upon entering the mosque, it was full of dead bodies and waste. The fleeing rebels tried to escape through water tunnels around the mosque, which were then flushed with water to bring the rebels out.

Sounds like a Baki editing wikipedia. Didn't see any references for the zia story in that article. As far as I know, GIGN did the actual assault, but one Colonel Ulrich (Ricky) Wegener, the head of GSG-9, did advice the saudis on tactics. Zia was nowhere in that picture, but probably did the Paki thing and took the credit. After all, the Saudis couldn't openly admit that they'd let non-muslims into Mecca, so there were some stories made up that an Imam had temporarily converted a bunch of GIGN commandos into muslims. As it happens, Herr Wegener was instrumental in freeing a German airliner from Palestinians a couple of years ago and also rumored to have been one of the people wounded in the Entebbe op. The saudis couldn't have openly admitted to him being their tactical advisor, so Zia must have been named to save their H&D.

Gagan · Post by **Gagan** » 13 Oct 2009 09:34

The pakistanis were last spreading rumors that PAF pilots were flying the Kfir fighters for the Lankans in their offensive on the LTTE. Also that it was pakistani arms and commanders directing the lankans who won the battle for them.

Talk of inserting themselves as victors in every conflict, when in reality the only victory they've ever had is against their own mostly unarmed civilians and that too when they had to use air power and artillery barrages against them.

sanjaykumar · Post by **sanjaykumar** » 13 Oct 2009 09:49

Okay all this bombing is making me confused-I am losing the flow here.

They need to be systematic, on Monday between 7am and 9:30am, Sunni Pashtuns of the Orakzai tribe will bomb MQM Shia workers in Orangi. Followed by a light lunch. Then Pak military will stage attacks on itself in Rawalpindi causing no more casualties than deemed necessary to impress the visiting American proconsul. Followed by keema samosas and the 149th rerun of Pakeezah in the officers mess. At sundown, no fewer than three women will be buried to prove that Amrika can never bomb Pakistan into the stoneage-because Pakistan is already there.

On Tuesday......

Vivek_A · Post by **Vivek_A** » 13 Oct 2009 09:51

Economic growth seen slowing
By Nasir Jamal
Thursday, 08 Oct, 2009

LAHORE: Pakistan’s economic growth outlook, in the short-to-medium term, remains weak in spite of the rising investor confidence on clear signs of economic stability.

Growth outlook depends on the materialisation of the $5.7 billion aid pledged at the Tokyo meeting of the Friends of Democratic Pakistan group and key fiscal reforms to raise taxes and reduce subsidies, according to an analysis of the Pakistan economy published in the Standard Chartered Global Focus.

The analysis downgrades gross domestic product (GDP) growth projection to 2.5 per cent for the current fiscal year from 3.3 per cent the government has forecast in the budget.

‘After a turbulent 2008, the economy has seen a steady turnaround in 2009, and all major indicators are pointing to greater economic stability ahead,’ the analysis by Sayem Ali, country economist for Standard Chartered Bank, says.

Foreign exchange reserves grew to $14.5 billion (covering 4.7 months of imports) in September from $6.5 billion a year earlier, helping to support the rupee. Headline inflation in August printed 10.7 per cent year-on-year, the lowest level in 18 months.

‘Significant tangible gains have also been made in improving the security environment, including the successful conclusion of military operation in Swat. These developments have restored confidence in the economy leading Standard & Poor’s to upgrade Pakistan’s sovereign rating by one notch to B- from CCC+. Moody’s has reaffirmed its B3 sovereign rating and changed the outlook to stable from negative,’ the analysis acknowledges.

It says the S&P rating upgrade has accelerated a pickup in foreign investment in the equity market and nearly $275 million of investment has flowed into the stock market since June, reversing 18 months of capital flight.

The significant build-up of foreign exchange reserves has also improved confidence in government paper. The credit default swap (CDS) on the Pakistan five-year sovereign bond has come down to 650 bps from a peak of 5,000bps in October 2008.

‘This indicates that the market is more confident in the government’s repayment ability and is pricing in a lower risk of default,’ the analysis adds.

The government hopes that GDP will grow 3.3 per cent year-on-year during the current fiscal from two per cent last year on higher public investment spending and a pickup in private credit.

SSridhar · Post by **SSridhar** » 13 Oct 2009 10:07

Pakistan destined to become economic hub: Foreign Minister Quereshi

Look at the arrogance, 'Pakistan destined . . .' as though everything has to fall into Pakistan's lap without Pakistan taking any efforts at all. 'US needs Pakistan more than Pakistan needs the US' belongs to the same category. Nowadays, the same rhetoric has started appearing vis-a-vis even PRC.

Foreign Minister Shah Mehmood Qureshi on Monday said Pakistan was destined to become a hub of economic activity . . .