Exploring Gulf states

THE challenges faced by Pakistan's economy have multiplied on account of the international financial crisis. Among those badly hit are Pakistan's traditional donors. What is needed under the circumstances is to devise a short-term strategy to meet the immediate threats and a long-term policy to put economy back on the rails. Pakistan's financial crunch continues to increase. Trade deficit during the July-September quarter rose to $ 5.549 while inflation rate reportedly recorded 33 percent. Measures taken by the State Bank and assurances by Mr Shaukat Tarin regarding the stability of the banking system have provided some confidence. While it seems unrealistic to hope for $100 billion that President Zardari thinks are needed to prop up the economy, all-out attempts need to be made to get assistance from all possible quarters to enable the government to tide over its difficulties.