I have a feeling Pakistan is going to be forced to implode in the coming 2-3 years.
The IMF just issued the government a loan, to cover the cost of imports. In return, the government is going to make a number of structural readjustments:
*Lower wages to reduce inflation
*Reduction in public spending
*A new 7% tax on the production of wheat (There has been a chronic shortage of wheat over the past year, those who can afford to, stock up on massive amounts when they can. In some cases, people sometimes have to drive a half hour out of the capital in search of wheat)
The situation is already volatile. Already there has been conflict between provinces over resources (food, electricity and so on).
A few months ago, 450,000 people fled the fighting in the north to camps.
Then Mumbai happened.
Now read below, talk about the perfect storm.
I'd say half the people on the board are creaming themselves at the possibility of a major war in Pakistan.
Alarm raised on threat of mass assault
By Demetri Sevastopulo in Washington
Published: December 4 2008 02:00 | Last updated: December 4 2008 02:00
Terrorist organisations would succeed in using weapons of mass destruction within five years unless the world community "acts decisively", according to a congressionally mandated commission set up to scrutinise WMD after the September 11 attacks.
"It is more likely than not that a weapon of mass destruction will be used in a terrorist attack somewhere in the world by the end of 2013," according to the report, released yesterday by the commission on the Prevention of WMD Proliferation and Terrorism.
The report singled out Pakistan, a nuclear power, as the weakest link in global non-proliferation. Pakistan posed a "serious challenge" to US national security in the short and medium term, it said.
"Were one to map terrorism and weapons of mass destruction today, all roads would intersect in Pakistan . . . P
akistan is an ally, but there is a grave danger it could also be an unwitting source of a terrorist attack on the US," said the report.
The commission urged the Obama administration to
create a strategy for Pakistan, including efforts to secure nuclear and biological weapons, while eliminating terrorist safe havens using "military, economic and diplomatic means".
Full story here:
FT.com / UK - Alarm raised on threat of mass assault