Dar has said that we now have to learn to live without the IMF.

[ThunderCat]

I think bangdesh should aim for underwear contracts for the ukraine military

Better yet, lots of Ukrainians should apply for immigration to Bangladesh -better economy and political stability. Their criteria for being a "good country."

 

[lightning F57]

Bankruptcy means that you can’t repay your loans. Pakistan is bankrupt.

Default means that you can’t make loan or capital repayments on time. Pakistan has started defaulting on payments.

There are dozens of loans. They may make some payments whole defaulting on others, which is what is happening.

Whether it’s the West, Middle East or China, no one wants to start seizing Pakistani assets abroad, of which there aren’t many anyways. The only assets abroad belong to corrupt politicians and generals. If those were seized they would pay off all of Pakistan’s loans.

Whichever government comes up power will have to renegotiate loans and lenders will have to be willing to write off some amount.

There will be a few years of crises. No one will give new loans, imports will fall, there will be petrol shortages, food shortages, electricity blackouts etc. Rupee will fall further.

If there’s a legitimate government then Pakistan will get out of the crisis sooner. If the duffer generals and criminal politicians hold on to power then it will be 10+ years before recovery.

That I think is the genuine worry, if the corrupt duffers stay in power for 10+ years pak is looking at a generation or 2 of loss in development and growth.

 

[lastofthepatriots]

Hence no matter who comes in power the development will be slow.

The only saving grace could be a swift restructuring of loans, V shape recovery in remittances.if that happens it may save us

Remittances and Chinese/American grace is the only way forward

Ironically we have shunned Pakistani calling them youthias so now it's only Chinese and Americans who are going to decide


I am going to try to study to see how people of Pakistan especially those who voted for dar have IQ less then 70.
The only common link I can find is food.
It's either the rice, oil or buffalo milk that makes Pakistani people IQ low that they will vote for dar since the 1990s..

So which is it? Buffalo milk? May be since Chinese are smart even with rice so are indians and bengalis

Let's not pretend that people still don't think nawaz sharif is a hero..

As we say in Punjabi ‘haram da paisa mun nu lagaa’. It’s the taste of haram money. That’s what gets NS voters. The mentality of ‘As long as I’m okay, who cares about my neighbor’.

I gotta say these Faujis are worse than Nero. They have to be sold out, because it’s hard to believe anyone in the top brass is stupid enough to approve Dalla Dar as the head economist of their shadow puppet government.

 

[NagaBaba]

China could replace IMF as a source for borrowing money.

 

[Communism]

China could replace IMF as a source for borrowing money.

IMF is the last resort.


If IMF refuses, then it means the country is a total basket case that refuses to reform any of their miss-guided policies.


Countries can give infinite money, but infinite money does not fix 100% intentional self-inflicted problems.


This is the post-colonial era, so it means no one can actually help a country that decides to be a basket case other than the IMF.

 

[Olympus81]

Pakistan got lucky $2bn Chinese loan got rolled over on March 23.

Upcoming loans due over the next few weeks and months will get rolled over? Some might and some might not. The loans which won’t might result in Pakistan’s technical default.

Here is Dar’s plan. Just grind the economy to a halt by suspending all imports which will impact exports. Remittances are already impacted due to their reputation.

To summarize, Dar is what you call an economic hitman, got opportunity twice to destroy Pakistan’s economy which he did and has done, with the help of his handlers.

 

[Enigma SIG]

The longer you can keep your head above water the more likely you are to survive.

Given if you know how to swim. Pakistan is a quad amputee drowning in a maelstrom.

 

[Cookie Monster]

The longer you can keep your head above water the more likely you are to survive.

Last month everyone had debt clocks and saying that Pakistan has one week, four days , 2 hours for default.

We ain't defaulted yet, the longer we postpone the more likely that we find a way out.

The government must be doing something right and getting lambasted for it.

That's just ur coping mechanism to defend ur beloved corrupt PDM. U r just grasping at straws at this point.

"The longer we postpone, the more likely that we find a way out"
...wtf does that even mean? Is running an economy successfully some sort of riddle? That u have to figure it out? There are plenty of governments that have functioning economies.
The government(any government) should be working on this since day 1...they should be working on it even now...what the hell does that even mean "find a way out" eventually. It is obvious and has been obvious to those with a brain...a member here just pointed it out(look at @ziaulislam post).

As for barely surviving...that is largely thanks to other countries like China rolling over the loans owed to them. Dar and the rest of the idiots haven't done much other than currency manipulation.

 

[ziaulislam]

Pakistan got lucky $2bn Chinese loan got rolled over on March 23.

Upcoming loans due over the next few weeks and months will get rolled over? Some might and some might not. The loans which won’t might result in Pakistan’s technical default.

Here is Dar’s plan. Just grind the economy to a halt by suspending all imports which will impact exports. Remittances are already impacted due to their reputation.

To summarize, Dar is what you call an economic hitman, got opportunity twice to destroy Pakistan’s economy which he did and has done, with the help of his handlers.

Twice not really
Pretty sure he did it four times each time he fucked up the country

That's just ur coping mechanism to defend ur beloved corrupt PDM. U r just grasping at straws at this point.

"The longer we postpone, the more likely that we find a way out"
...wtf does that even mean? Is running an economy successfully some sort of riddle? That u have to figure it out? There are plenty of governments that have functioning economies.
The government(any government) should be working on this since day 1...they should be working on it even now...what the hell does that even mean "find a way out" eventually. It is obvious and has been obvious to those with a brain...a member here just pointed it out(look at @ziaulislam post).

As for barely surviving...that is largely thanks to other countries like China rolling over the loans owed to them. Dar and the rest of the idiots haven't done much other than currency manipulation.

Country is already defaulted out bonds (i.e loans) are being sold at 50% discount..that's an incredible discount meaning you can double your money if the country doesn't default...has to be gamble of life time !!

We can't raise any money via bonds any more and the only reason we are not in legal default is because creditors themselves don't want that.. they are hoping we won't default as that would mean they would lose the remaining 50% value

It's like a poor man doesn't have money to pay and you give him an extension otherwise he might tell you he would not ever pay you back


Our official Fitch rating is c-- which default is imminent..I e Pakistan has defaulted for all PRACTICAL purposes

Nothing would change if we do legal default just like a technical default we can't raise money or support our rupee anyway

Congratulations for dar for achieving this feat fourth time and congratulations for Punjab elite for voting him into power 8 times

Stockholm syndrome at its finest @Redbeanpaste

 

[PakFactor]

Dar & Co just discovered, there is no such thing as a free lunch.

View attachment 922946

I mentioned in other thread's there are simple policy implementations they could've put in place as requested by IMF, but they are escaping accountability. Then the question of the military opening their books and budget cutting.

It would've been a lot easier if PDM had come out with the full guidelines of what the IMF wants. I know all the items that need to be checked off, but GEO and Dawn News-type mouthpieces are trying to play a brain fart on the local population.

 

[ziaulislam]

Lastly why will people lend us money because Pakistan is world fifth biggest country

Where there people there is money
No matter how poor the people are
Investors may come back but not for long haul
Military inc is pretty happy it doesn't care if country default as long as it holds the domestic market hostage

Does north Korea cares ..no it doesn't

Whole Asia population was less then Pakistan population just 200 years ago.

Pakistan will survive and military and elite will continue to drain the milk out of it and people of Punjab and Sindh will reliably vote for their electables and nawab's and peers like there forefathers have for last 300 years

How do you think the British controlled India any way??

 

[PradoTLC]

Better yet, lots of Ukrainians should apply for immigration to Bangladesh -better economy and political stability. Their criteria for being a "good country."

Yes 100%


Plenty of River side residence …

 

[PradoTLC]

Next Steps — What Happens When A Country Defaults?​

This section highlights the core of this article. In this section, I will outline the top ten potential consequences of a country defaulting:

1. First and foremost, currency of the country can be devalued. This can make it expensive to import products. Additionally, export businesses might suffer due to selling products and services cheaper in short term. For exporters, currency devaluation is a double edge sword; when services and products get cheaper, it increases their demand. Exports become attractive and raises competition in market. As exports are cheaper for foreign countries, they tend to buy more from the defaulted country. Additionally domestic service providers might benefit due to foreign investments and tourism boosts due to foreigners visiting more frequently as it happened after pound devalued in 2016. Hence default has positive effects for the country too.
2. Secondly, debt can be restructured such as by extending the loan payment date or by reducing the loan amount or by further devaluing the currency.
3. Austerity measures might be followed which includes spending cuts and tax increase.
4. Living standards of people can also be impacted. It might start with riots on the streets leading to banking crises. The core reason for banking crises can be that the people might attempt to take all of their money out of the banks due to uncertainty and confusion. The chances of banking crises might increase, as an instance by up to 10% and the government may close down its banks to avoid money withdraw. Occasionally, withdrawal is permitted but capital controls are imposed.
5. Countries defaulting on foreign currency debt might also end up defaulting on local currency debt. This means that if you bought treasury bonds and the country defaults on foreign currency debt then you might not receive your bond periodic payments.
6. Unlike business or individual bankruptcies, assets of a country are not repossessed. However occasionally military actions are followed when countries default. As an instance, Britain attempted to occupy Egypt when it defaulted in 1880s.
7. Turmoil can be experienced in stock market. This can be due to uncertainty in market. No one might willing to buy anything. Many investors might even decide not to do business with the country until the situation is stable.
8. Governments may refuse to pay any money or reduce the borrowed money as it happened in Argentina in 2001.
9. The country can face loss of reputation, its rating might decline which makes it harder to borrow money in the future.
10. GDP can slow down by up to 2% however it is usually for short term only (1–2 years). Cost to borrow money might even increase up to 1%. Due to higher export demands, current account deficit can decrease and this in turn ends up increasing economic growth. Again, there are some positive side effects.

Exports getting cheaper depends upon how much indigenous element is there, so let say we sell shoes, now if there is a high component of imported cost such energy cost, materials used in making the shoe, machinery etc then effect has been limited. if you look at historical data Pakistani rupee has been constituently been devalued and yet much improvement in over all numbers over many decades.

 

[Dalit]

What do they want us to do? Cut a pound of our flesh? They dictate our policymaking openly and detail it to a manner of their own liking.

We are pursuing aggressive policies to correct the economy. These are time exhausting measures.

Since you support PDM and are a major part of the problem, of course I expect you to cut a pound of flesh.

Seriously what overseas assets does Pakistani state have ? Your foreign debt is $140 billion

What about embassy buildings and other properties for a start?

Bankruptcy means that you can’t repay your loans. Pakistan is bankrupt.

Default means that you can’t make loan or capital repayments on time. Pakistan has started defaulting on payments.

There are dozens of loans. They may make some payments whole defaulting on others, which is what is happening.

Whether it’s the West, Middle East or China, no one wants to start seizing Pakistani assets abroad, of which there aren’t many anyways. The only assets abroad belong to corrupt politicians and generals. If those were seized they would pay off all of Pakistan’s loans.

Whichever government comes up power will have to renegotiate loans and lenders will have to be willing to write off some amount.

There will be a few years of crises. No one will give new loans, imports will fall, there will be petrol shortages, food shortages, electricity blackouts etc. Rupee will fall further.

If there’s a legitimate government then Pakistan will get out of the crisis sooner. If the duffer generals and criminal politicians hold on to power then it will be 10+ years before recovery.

The IMF and other lenders won't go after elite and rich segments of Pakistan. Although this is where a lot is to be gained. The generals are right now a favorite and an obeying puppet of the West. Imported PDM is obviously a Western creation. Hence all we will hear are empty words from IMF. Logically the IMF should force PDM to collect a lot of tax money through generals and other elites.

 

[ProudThamizhan]

why is everybody criticising this statement ? seems perfectly innocuous, that Pakistan has to eliminate the dependence on IMF especially given how hard IMF mandates conditions are to swallow by Pakistan. May be I am missing some nuance