counting the cost of a nation’s obsession

 

Pakistan, it is reported is inching towards a payment crisis.

Clock ticks down on Pakistan’s payments crisis

By Simon Cameron-Moore | Reuters | Fri Oct 17, 2008 7:31pm IST

ISLAMABAD, Oct 17 (Reuters) – Pakistan moved closer to a balance of payments crisis on Friday, as the rupee slumped to a record low after the central bank reported it had barely enough foreign currency to cover six weeks of imports.

HOW MUCH FOREIGN CURRENCY DOES PAKISTAN HAVE?
As of Oct. 11, Pakistan’s foreign currency reserves totalled $7.75 billion, having fallen $570 million in a week. Critically, the central bank’s share of this has fallen to $4.34 billion, while commercial banks held $3.41 billion. The News daily said on Friday central bank reserves had slid to just under $4 billion as of Oct. 16 and out of that $1.5 billion had been consumed by currency forward booking liabilities.

HOW LONG CAN PAKISTAN GO ON BEFORE IT RUNS OUT OF DOLLARS?
The data shows the central bank has barely enough foreign currency to cover six weeks of imports. Including commercial bank reserves, it has two months’ cover.

It is all too easy to lay the blame on the global financial meltdown.

A nation born with a million hopes has in 61 years been reduced to beg,
It has received billions of dollars in aid over the years,
Money that could be better spent on building the infrastructure of a new nation.
then how and why did it all go wrong?

The answer is simple.
Pakistan is a nation that has been driven by one obsession, one greed, one motive –

Kashmir

August 1947: Birth of Pakistan as a sovereign state.
October 1947: On the 22nd Pakistan launched a full-scale invasion of Jammu and Kashmir, though intrusions had begun almost immediately following the partition of India on August 15th.

Read more: http://littleindian.awmyth.net/?p=423

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~ by littleindian on 2008, October 18.

 
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