The Pakistani economy is facing its worst crisis in a decade, with massive trade and budget deficits, plunging foreign currency reserves and investments, a severe energy crisis, super inflation and capital flight. According to senior economist Qaisar Bengali, “we are on the verge of default and economic collapse. It is a financial crisis and it is very serious. If we are unable to meet our debt repayments, if we are unable to pay for imports, then the wheels of agriculture and industry will certainly come to a stop”. He is not the only economist portraying such a catastrophic scenario; another leading economist, Yousaf Nazar, put it this way; “we should prepare ourselves for the coming economic tsunami.

Workers in oil and gas fields have decided to shut down all fields in Pakistan. The unions have called for an all-out, indefinite strike from November 17, if the government fails to halt the privatization. Oil and gas field workers organized country-wide demonstrations against the planned privatization of Qadir Pur gas field in Sindh. At the moment, workers are observing a daily two-hour token strike.

A long awaited economic stimulus package was unveiled by China’s cabinet, the State Council, on Sunday 9 November. The package, claimed to be worth 4 trillion yuan or $586 billion, was designed to have maximum impact on market ‘sentiment’ in China and worldwide. Like clockwork, China’s stock market jumped 7.3 percent on the news, and most global stock markets rallied. This underlines China’s role as an ‘elephant’ in the global capitalist economy – it accounted for 27 percent of global economic growth last year, more than any other nation, and Merrill Lynch forecasts this will rise to 40 percent next year. The financial speculators went crazy on Monday, especially for commodities like oil and metals, hoping China’s formerly huge appetite for raw materials will now be revived. Oil prices rose 5 percent. Under closer examination, however, China’s plan is not as spectacular as first appearances suggest.

The overwhelming victory for Barack Obama in the US Presidential elections and the major gains scored by the Democrats in the Senate and House of Representatives represent a turning point for the USA. At the time of writing it appears Obama has won over 52.3% of the popular vote and more than 62 million votes. The massive increase in turnout – which at the time of writing is estimated to have reached 64% - with the dramatic increase in registration and votes from Afro- Americans, Latinos and young people represent a crushing condemnation of Bush and the neo-cons as well as a generalised, if incoherent demand for ‘change’ amongst the mass of the US population.

Five women shot, wounded and buried alive

The grotesque story of five women in the Jaffarabad district of Baluchistan, who were apparently shot, wounded and then buried while still alive, not only shock the people but also has re-focused attention on the issue of ‘tradition’ and its impact on the daily lives of people. The women were punished for the decision taken by three teenage girls, who are among the victims, to marry by choice.

Within a few months of the new government taking power in Pakistan the country has been plunged into a new crisis. Economically bankrupt and compelled to go to the IMF for a loan, hourly power cuts, rising inflation, mass unemployment and a vicious war being fought on the Afghan-Pakistan border the country stands on the brink of collapse and disintegration.

Video interview with Peter Taaffe, General Secretary of the Socialist Party, cwi in England and Wales.

By any standards, Monday 29 September was a bad day for world capitalism. News that the US Congress had voted down the $700 billion bail out, despite Treasury Secretary Henry Paulson having pleaded for it literally “on bended knee”, sent stock markets around the world tumbling. US stocks recorded their biggest one day fall since the Black Monday crash of October 1987.

The US imperialist intervention in Afghanistan has spilled over into Pakistan, which has now become a victim of this bloody war. The victims in Pakistan are, once again, mainly the Pashtoon peoples, on both sides of the Durand line – an artificial line drawn by British imperialism, in 1893.

For the last six months, water and sanitation workers (Wasa) in Quetta (a city in the Balochistan province of Pakistan) have been taking weekly protest actions, including a 24-hour strike, on 23 August, over the refusal of the authorities to implement an agreement with the Wasa employees union over pay and conditions. The following (edited) report is from Maroof Azad, central organiser of the Pakistan workers’ movement (PWM) and General Secretary united labour federation (MLF) Balochistan.

Pakistani masses have seen the back of another military dictator, as General Musharaf finally resigned as President on Monday 18th. His resignation ended the month’s long speculation about his future. The streets erupted with jubilation as soon as he announced his resignation. The people started dancing with joy and tones of sweets were distributed.

Rather than the Olympic movement’s self-professed ideals of ‘internationalism’ and ‘fair play’, the Games are about two at first sight contradictory forces: nationalistic flag-waving and capitalist globalisation.

The two week long strike and protest movement called off on Wednesday, as management accepted the main demands. The management signed the agreement with united workers alliance and started to implement it immediately. According to the agreement, the workers will get 35% immediate increase in the wages as provisional relief and committee will be formed to review the pay scales and prepared the new pay scales from 2005. 8000 contract (NPCG) workers have been confirmed and will also get 35% increase. These workers will also get all the concessions and benefits given to the other telecom workers. In total they have won 13 concessions and benefits.

The strike and protest movement of Telecom workers has entered into its third week (see previous reports). Nobody was expecting such a long strike of Telecom workers. Thousands of workers have been sitting inside the Telecom headquarters for the last four days. The government and media are calling this sit-in an occupation which has been denied by the workers’ organization called United Workers’ Alliance. The workers are determined to continue the struggle and take more radical actions.