Spending spree by the government

The period of 1998- 2007 is marked by two different kinds of phases. The first phase was one of international sanctions due to Pakistan’s explosion of nuclear devices on 26 May 1998 at Chaghi. Economic activity slowed down for want of funds. In fact this was the period that instead of becoming passive the government should have taken bold initiatives in both public and private sector development. The second phase soon followed when plenty of funds started pouring in from the US as well as its allies to support Pakistan’s campaign against terrorism. Pakistanis abroad too sent home considerable foreign exchange. A substantial part of country’s foreign debt was remitted by the West. This sharp reduction in debt and its servicing encouraged the senior government officials to plan trips abroad along with large entourages incurring big amounts of foreign exchange. Dozens of heavy bullet proof cars were imported in the name of security. The new Prime Minister beefed up his cabinet to have five dozen ministers. New office buildings were constructed. Their decorations involved heavy foreign exchange