By K.N. Pandit
“Officially, the central bank holds $8.14 billion (£4.65 billion) of foreign currency, but if forward liabilities are included, the real reserves may be only $3 billion – enough to buy about 30 days of imports like oil and food”, wrote the Daily Telegraph of London about Pakistan in its issue of October 6, 2008.
US’ observers on Pakistan make no secret of a grave situation developing there, which the present government in Islamabad calls the legacy left by Pervez Musharraf who quit the office of President last month. The situation has been complicated by the financial crisis worldwide and its inevitable impact on Pak economy despite tall claims that the economy of the country is not in peril.
Armed clashes with the Taliban-Al Qaeda insurgents in Waziristan, growing nexus between Afghan refugees and the Taliban operating on Paki-Afghan border, and growing crescendo of Pakistani terrorist outfits have all made a mess of administrative dispensation.
Observers predict a dismal future or near future of Pakistani State.