Rumors circulating

With stock exchanges tumbling like domino’s the world over all of us have lost not just a pile of our hard earned savings but a lot of our trust as well.  We as citizens of the world normally believe that

a) The financial system has backup plans and checks built inside to aide the economy and stop a complete meltdown

b) There is a bottom

c) It cannot happen to me

All three of the above have been literally blown to smithereens in the last month or so in Karachi. First the stock exchange went leading to a massive flight of capital, then it did not stop falling in fact it did not stop at all until an artificial freeze had to be put in place to save almost half the brokers of our KSE from completely defaulting and then the coup de grace our rumor mill went into overdrive.

Consider this I just returned from a trip to Dubai and in the first day I have heard that 10 banks in Karachi are going belly up including huge foreign banks in this list of names. That the government is thinking about whether to seize foreign currency accounts or seal and freeze lockers or stop honoring government issued bonds or some other hair brained cockamamie conspiracy that people are dreaming up while counting the pile of gold coins they just converted their life’s worth too because “they just cannot trust anyone anymore” Well HELLOOOOOOO here is a clue doofus, if you keep your entire lives worth in your house or garden or wherever you have it hoarded, in the most insecure city in the world you are basically lying naked and ready for ravishment in a sailors bar.

I wonder what makes sane minded clear headed people scream PANIC PANIC and run to their bank to stand in a queue of their fellow looneys who are withdrawing every penny like its gonna be really worth something in the local currency when & if (god forbid) the country defaults hahahaha!!!

Some are even advising  against sending texts to each other as the “Government” is monitoring all info  to see who makes the most fun out of Zardari so they can pick them up in the middle of the night. I want to know why we need to make fun of him at all? Is he not doing that job pretty darn well all by his lonesome?

Oh and here is a thought while you are busy digging a hole in your floor to hide your jewelry in, when the time comes…all you will need is a flight out of here to save your life. Nothing else will work. So if the mood strikes you I suggest a queue outside the main terminal, I hear planes landing make for peacefull sleep. Also keep a sack handy for your goblin gold as they will readily change that at the disembarkation lounge in london or dubai into the local currency for ya, while you are at it you might want to book a vault in gringotts as well I hear they never go belly up!!!

This city has seen the most horrible times in its existence and I assure everyone that this too shall pass. It may not be as easily navigated as we think it is but in the end Karachi will remain. I would like to appeal for calm and to stop indulging in hoarding as it is driving morals down and the dollar up.

13 Comments so far

  1. hbrehman on October 18th, 2008 @ 6:35 pm

    EXCELLENT POST FAISAL!…. v reliee need to talk about this issue

  2. srhasan on October 18th, 2008 @ 9:54 pm

    What an excellent post!! Kudos Faisal. K. Here is something I read in last week’s TIME magazine

    "Years ago, the Princeton psychologistHadley Cantril posited that social panics occur when large groups can’t discern reliable sources of advice from unreliable ones. The jumbled frenzy of 24/7 informationaccess may be making our current panic worse. It’s tempting to check your investmentevery few minutes. But having more information, in this case, iasn’tnecessarily better. Panic attacks end when you take a deep breath, and a step back".

    Pakistanis and especially Karachiites over years of insecurity, voilence, illitracy, poverty and above all following deeply a dogmatic and superstitious form of religion have been rendered defenceless against all kinds of social panic and conspiracy theories.

    – Rashid Hasan

  3. tzaidi on October 19th, 2008 @ 1:20 am

    The financial turmoil world is seeing is just a tip of iceberg. Its like a domino effect, if one will fall all will fall after sometime.

    But one thing is for sure that world has seen a clear distinction during this financial turmoil and that is the shifting of financial balance towards east. For sentuies they (west) were controlling all major games in world of finance, but now the eastern economies and their banks are standing tall during these difficult times.

    As fas as Karachi is concerned, hum nay kabhi acha waqt dekha he naheen hey ,,,,,, tou hum buray waqt say kya paraishaan houn gay !!!

  4. calyps on October 19th, 2008 @ 2:49 am

    yeh sab qayamat ki nishania hai ..

  5. faylasuf on October 20th, 2008 @ 12:17 pm

    @Faisal, nice post, lets pray that ppl wud start thinkin with their heads rather then followin wht Geo has to say!

    @calyps, jo mar gaya us ke tu qayamat agaei, nishani ho ya na ho

  6. mvohras on October 20th, 2008 @ 5:49 pm

    KSE is the market where no risk measures work; Its all about speculation. KSE has long been overpriced and its only small investors and Citizen who are losers as usual. Atleast some time in west you see large players go bust like Lehman brother but in pakistan you never see this otherwise AKD etc. has been become history Somebody somewhere piling up their wealth. Oppurtunities exist in all directions. Same things in currency market where rumours works for somebody. This all happening where we are not the country directly exposed to Subprime mortgage crisis.

  7. frost on October 20th, 2008 @ 7:13 pm

    Very Nicely put, people should not panic and remain calm inshallah eerything will turn up alright, ther are certain foregin elements who are hell bent on destroying the economy so in this time we should be united.

  8. tzaidi on October 20th, 2008 @ 9:17 pm

    @frost, I agree with what you say that we should not panic and wait out these difficult times – But I disagree with second part of you comment regarding ‘certain foreign elements’.

    Not only in Pakistan, but elsewhere from USA to UK to UAE, from Brazil, to Burundi to Brunei, everywhere all financial institutions are feeling the adverse effects of the current mayhem in financial world. So will they look after their own problems (which are quite serious to their economic survival) or they will spend the energies of creating problems with Pakistan.

    I would advise anyone who is interested in gaining more knowledge on this situation should read IMF report (

  9. sakhan on October 21st, 2008 @ 10:39 am

    بھائی فیصل ، اچھی تصویر کھینچی ہے آپ نے معاشی صورت حال کی ، لیکن کیا کیا جائے کہ یہ بحران تو ساری دنیا میں جاری و ساری ہے۔اب کیا کراچی اور کیا اس کی اوقات ۔خیر اہل کراچی نے اس سے پہلے اتنے بحرانوں کا سامنا کیا ہے کہ یہ مالیاتی بحران تو ان کے آگے کچھ بھی نہیں ۔۔ فکر نہ کریں کراچی اس بحران سے بھی عہدہ برا ہو جائے گا ۔۔انشا اللہ

    رہے نام اللہ کا

  10. zsikand on October 27th, 2008 @ 10:52 am

    Some may consider that as a good post but people like me would like to add that it is not only in karachi that things have gone bad. Every major city in the world is facing problems right now and stock markets are plummeting throughout the world. It’s a sad fact but i guess we should be used to it by now that people simply love to undermine karachi and not look positively. If any of you has taken even one economics course in your pathetic lives you’ll be able to see that this is what is called recession and this too shall pass over time. Yes it is true that the poorer countries are the worst affected by these times but then again, keep your chin up?

  11. john6 on October 28th, 2008 @ 9:19 am

    It is incredible that during the doom and gloom that is setting into the Pakistani psche right now,that a dazzling new business has opened in Zamzama!!> i went there on Saturday night–a place called Beirut Restaurant complete with party atmosphere,superb food and real value for money!!!.The best Arabic food in Pakistan-I haven’t eaten better and I am used to lebanese food in Paris and The States.And best of all,they have this Lebanese chef that has come from Beirut to Karachi!!!.unbelievable,they should write about thi stuff-as it is uplifting and really good publicity for a country which my country is constantly attacking in the media for being backward and uninspiring for investment etc etc.Well,Beirut restaurant is a real joy to be at and to witness as a foreigner.No doubt there will be a lot of jealous locals who will want to see it fail–well,if that is so then they will see their own country fail if they are going to be cheap and mean-spirited not to support a new and brave venture.They should be giving accolades to the beautiful people of Beirut restaurant for promoting karachi and pakistan so well to us foreigners>My middle eastern guests were really impressed with the place and at last have a hang out in karachi when they visit from Saudi on business.The owners are Karachi through and through and a lovely and charming Lebanese girl runs the place–no wonder all the jealous local businesses especially the nearby restaurants are shaking!!.Good luck to you all!,Cannot wait to visit again.I will be telling the folks in the U.S. how superb my experience in Pakistan was this time–all made more real and truthful thanks to your lovely hospitality at Beirut restaurant.!!!.Best of luck,and Keep the fervour going!! You are a beacon and example of business confidence for the whole of your nation which should learn by your example!!!.Viva Beirut!

  12. zan6 on October 29th, 2008 @ 1:50 pm

    Dear John,

    First of all I would like to express my gratitude of saying such wonderful things about our restaurant. We Pakistanis are not bad chaps at all, we like to enjoy the finer things in life also and we are trying our utmost best to emphasis that my country is indeed a lovely place to dwell in.

    On behalf of all the Directors and Management of Beirut Restaurant we would like to thank you once again for your fabulous comments.

    Kindest regards

  13. true on November 9th, 2008 @ 2:31 pm


    Good to know that you and your customers had a pleasant experience here in Karachi. Congratulations to Beirut Restaurant Management.

    I quiet often used to eat there when i was in Bangkok. Loved there Sheesh Kababs and Lamb BBQ stuff especially when served with that superb garlic paste.

    Though I am not sure about how the more traditional mediteranian dishes will be recieved here in Khi.

    Good luck to all.

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