Pakistan Economy Hits Rough Patch
The recent political turmoil with Bhutto's return and her tragic assassination in Oct-Dec 2005 period is taking its toll on Pakistan's economy. Weaker textile exports, rising food prices, and ongoing energy crisis have caused the government to scale down its growth target for the fiscal year ending June 2008. Immediately after Benazir Bhutto's death on Dec. 27, rioters from her native Sind province caused an estimated $1.3 billion in losses, according to Karachi's Chamber of Commerce. Power transmission, telecommunications and roads were affected. Among the recent issues exacerbating the larger energy crisis, the two main power transmission lines were blown up in January 2008 in Sind, creating a shortfall of 1,000 MW. The business community complained that lopsided and unplanned shutdowns resulted in closures in almost all industries. Many factories in Karachi, the heaving commercial hub -- including some owned by Colgate-Palmolive Co. and Philip Morris International I...