Economic CrisesSee also: Periods of stagflation in Pakistan
From 14 to 17 October 2008, he was in China to negotiate foreign aid, as Pakistan faced the possibility of defaulting on its payments. China refused to offer any aid commitments, but instead promised to provide assistance in the development of two nuclear power plants and more future business investments.
After Saudi Arabia, Britain, China, the United States, and the United Arab Emirates refused to provide any bailout, he officially asked the International Monetary Fund (IMF) for assistance in solving Pakistan's balance of payments problem on 22 October.
He went to Saudi Arabia from 4 to 6 November in hopes of obtaining financial aid and securing trade agreements. However, leaked cables revealed increasingly strained relations between Zardari and Saudi royalty, primarily because of Saudi distrust of Zardari and preference for Sharif. Weaker cooperation led to decreased oil subsidies as part of a broader Saudi policy of withholding monetary assistance.
In mid-November 2008, Zardari's government officially sent a letter of intent to the IMF regarding a bailout to help increase its foreign exchange reserves. In a $11.3 billion multi-year loan package, Pakistan received a $7.4 billion loan for 2008–10. The IMF stipulated stringent reform conditions, which included rebuilding the tax structure and privatising state enterprises. The World Bank and Asian Development Bank withheld a combined $3 billion aid in the 2010–11 fiscal year and the IMF withheld since May 2010 the last segment of its aid package.
In January 2011, the MQM withdrew from the government. Zardari's ruling coalition averted a government collapse by accepting the opposition's economic proposals, which restored gas subsidies and abandoned many of the IMF's suggested reforms.
In an effort to curb government expenditures, Zardari swore in an "austerity cabinet" in February 2011 which reduced the cabinet from 60 ministers to 22.
Other articles related to "economic crises, economic, crises":
... In serious economic crises, Marx suggests, the structure of market prices is more or less suddenly readjusted to the evolving underlying structure of production values ... The economic crisis means that price and value relationships have gotten badly out of kilter, causing a breakdown of the normal trading process ... According to Marx, the basic meaning of crises for capitalists was, that they could not longer invest their capital at an adequate profit income, which usually meant also that their capital lost part of ...
... Marx's models of economic reproduction in capitalism have often been interpreted as stating the conditions for economic equilibrium, or balanced economic growth ... That means lower economic growth ... The argument is that balanced economic growth is only a temporary phenomenon, because a private enterprise economy is incapable of sustaining the necessary proportionalities it requires for that ...
Famous quotes containing the words crises and/or economic:
“Part of the responsibility of being a parent is to arrange situations in childrens lives so they are able to meet crises with a reasonable chance of coping successfully with them.... Parents who believe children are unharmed by crises and will simply bounce back in time seriously misunderstand children.”
—Donald C. Medeiros (20th century)
“The great dialectic in our time is not, as anciently and by some still supposed, between capital and labor; it is between economic enterprise and the state.”
—John Kenneth Galbraith (b. 1908)