Where is the progress?

For those who think recent events in the city had no effect on the development work whatsoever, here is an eye opener.

It doesn’t take rocket science to figure that out. Investors keep an eye on the happenings in an area before making a decision. If there is uncertainity in the air they will not think twice before backing off. No one likes to take worthless risks. A single day of strike causes unrecoverable losses. Add that to rallies, protests, power cuts, traffic jams, and you know why inflation is exponentially increasing. Everyone tries to make up for the losses by increasing the prices, and working middle-class suffers the most.

It cracks me up to the core when I hear authorities claiming that economy is thriving and investment is booming. They might be right, but can anyone explain why prices are sky high despite all the progress and foreign investment?

6 Comments so far

  1. d0ct0r (unregistered) on May 31st, 2007 @ 1:56 pm

    well these ABAD people(consturction mafia) heavily bribe MQM.. they’re biggest financial donor of MQM.. not by choice but they’re forced and threaten to do so… naturally their future is dependent on MQM and MQM’s city govt.. if MQM goes then their money which they’ve paid to MQM leaders also goes to waste…


  2. d0ct0r (unregistered) on May 31st, 2007 @ 3:51 pm

    we talk about progress and development .. every time there is a fire it simply gets out of hand.. city of 15+ million people and we haven’t got modern sophisticated firefighting equipment… government got all the money to buy mercedes Pardos and Landcruisers for Prime Ministers Governor and Nazims but they haven’t got money to equip emergency response teams in case there is any accident of serious nature in our cities… last time when Baber Ghauri’s office was burnt they were just helplessly standing in front of the building coz they didn’t had proper equipment to fight fire at such a height.. now here at Iqbal Center M A Jinnah Road pouring of water doesn’t seem to be working coz of chemicals and foam involved … i think its hightime that we should get our priorities right and our leaders should start using their brains


  3. Sufi (unregistered) on May 31st, 2007 @ 4:29 pm

    If I am not totally wrong, this is how it works. Correct me if I am wrong guys, cos its been a while since I last read it.

    Just like any other product X, money (the currency) also has a supply demand chart. An increase in investment means an increase in supply of money. An increase in supply while the demand is same means that there is more money in the market (surplus) then it is actually demanded at the equilibrium point. Therefore, the value of the money falls. You need more money to buy the same thing that was cheaper at the old equilibrium price.

    I think the way to control this is to control the cash flow in the market. That is how the feds do it in the US.


  4. Hasan Zuberi (unregistered) on May 31st, 2007 @ 6:34 pm

    WHERE IS THE PROGRESS ?

    …. best guess GAWADAR .. with its number of fake “GDA-Approved” schemes as reported by media; and warned by NAB:

    http://www.thenews.com.pk/daily_detail.asp?id=58279

    Lahore is doing much better then Karachi, as number of MNC/NC has shifted or about to shift their head offices to Lahore including MCB.


  5. pkhan (unregistered) on May 31st, 2007 @ 7:40 pm

    Its the supply and demand,even though we have bumper crop of wheat/rice but demand in Neighboring countries and in Africa is so huge that prices are affecting us, they can make more money by exporting then local consumption.Economy is booming because of the infrastructure development, If you do not have infrastructure no one wants to come and invest.Another example is the Stock market now an ordinary person can invest in stocks and make or break some bucks.People have more money in their hand to spare.Any one given project brings in chain of reaction from bottom up.Oil was between $18 to $25.00 a Barrell in international market now a days it is between $60 to $65 thats give you an idea how things are going up most of the thins are related to oil .


  6. TURAB (unregistered) on June 1st, 2007 @ 2:46 pm

    umar u need to take econ 101 and then u ll get all ur answers!! growth and inflation go hand in hand esp if the grwth is 6-7%!!



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