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‘Friends of Pakistan will help country in a systematic way’: No cash for bailout: US

I think this is actually an opportunity for pakistan. In 1991, India was close to bankruptcy, with no one to bail us out. then we opened up our economy as a last resort. that turned out to be a real blessing in disguise.

i believe that if pakistan finds a solution to this problem by itself, and not through the help of others, it will emerge from this stronger and more experienced.
 
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I think this is actually an opportunity for pakistan. In 1991, India was close to bankruptcy, with no one to bail us out. then we opened up our economy as a last resort. that turned out to be a real blessing in disguise.

i believe that if pakistan finds a solution to this problem by itself, and not through the help of others, it will emerge from this stronger and more experienced.

I had already mentioned that before.:cheesy:
 
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Translated into numbers, it will mean cutting the fiscal deficit to four per cent or less; raising the tax-to-GDP ratio from 10 per cent to 15 per cent.:tup:

The problem is most of pakistans tax earnings, more than 50%, comes from karachi. karachi's per capita is $8000 compared to the national average of $900. Thats a very big income disparity. Even the $100billion economy of Bangalore claims only a per capita of $1100. Plus, there is no govt protection for rural areas.
Opening up the economy will make the country better. But, the income disparity between the cities and towns will only grow further. Anyways, is the tribal belt taxed too. Like NWFP, Baluchistan.
 
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I think this is actually an opportunity for pakistan. In 1991, India was close to bankruptcy, with no one to bail us out. then we opened up our economy as a last resort. that turned out to be a real blessing in disguise.

i believe that if pakistan finds a solution to this problem by itself, and not through the help of others, it will emerge from this stronger and more experienced.

Dear su-47; sir,
simple solution could be, selling a nuckbomb to IRAN , per year?:agree::lol:
 
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Dear su-47; sir,
simple solution could be, selling a nuckbomb to IRAN , per year?:agree::lol:

ROFL.;)

Imagine Bush's face then.

Off course the consequences will be much more dire for pakistan than the problem being faced now.:sniper:
 
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The problem is most of pakistans tax earnings, more than 50%, comes from karachi. karachi's per capita is $8000 compared to the national average of $900. Thats a very big income disparity. Even the $100billion economy of Bangalore claims only a per capita of $1100. Plus, there is no govt protection for rural areas.
Opening up the economy will make the country better. But, the income disparity between the cities and towns will only grow further. Anyways, is the tribal belt taxed too. Like NWFP, Baluchistan.

Correction: Karachi's per capita income is $9200 against countries $1.032 (FY 2007/08) which translates into 58% of GDP.
 
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The problem is most of pakistans tax earnings, more than 50%, comes from karachi. karachi's per capita is $8000 compared to the national average of $900. Thats a very big income disparity. Even the $100billion economy of Bangalore claims only a per capita of $1100. Plus, there is no govt protection for rural areas.
Opening up the economy will make the country better. But, the income disparity between the cities and towns will only grow further. Anyways, is the tribal belt taxed too. Like NWFP, Baluchistan.

Simplest rule if i was to run Pakistan wanna sell it in Pakistan build it in Pakistan.more then welcome not to sell us if u don't like this rule if u don't some one else will.
Western countries have a problem with it open up your markets to our goods for same market share you demand from us.again don't like that rule keep your goods at home we will build it ourself.
Flat income and sales taxes on every commercial and personal incomes regardless of there sales and income.
cause of flat tax people and business will keep there money in Pakistani banks and not overseas or under the mattress. GOP will collect more in first year then they do it in five or 10 years.pay of the debt or at least bring it Down to manageable levels.
privatize health care (private sector supplies the health care GOP pays the bill)government employees don't run it.
Privatize education again same rule applies.
sell of all crown corporations regardless if they make money or lose at fair prices or what ever u can get for it.

But good news now is last time west put sanctions on pakistan we grow up a bit and started R&D in defence department +started manufaturing some home made goodies.Now cause of wests refusal to pay of politicians we just might grow up a bit more and start to menage the economy on :pakistan: first.basis.:victory::yahoo:
 
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1)The fact is no one — not China, not the US, not Saudi Arabia, not the Gulf countries, not the IFIs — trusts Pakistan to behave responsibly if handed a fistful of dollars. This is their cumulative judgment from their accumulated experience of dealing with us for decades.:smitten:

2 The IMF will demand that Pakistan live within its means by spending as close to much as it earns. Translated into numbers, it will mean cutting the fiscal deficit to four per cent or less; raising the tax-to-GDP ratio from 10 per cent to 15 per cent.:tup:

They way i look at it we are better of if the international donors dont donate any money to Pakistan most here knows very well all the donations end up in politicians off shore accounts.
Nothing goes to the average person on the street or the street for that matter.so what are you guys Compalining about i like it
Our future can no longer be mortgaged just so Dogs future could be finnacially secure.:victory::bunny::yahoo:

Extremely well put. The sole reason that there is all this cry and hue in Pakistan is because the monies are not coming in and the politicians cannot skim off the loans. The only way forward for Pakistan is to raise taxes (as is done in the rest of the world), cut back on spending (no more tours overseas with delegations of 70-100) and live within our means. Also this politicking has to stop somewhat so investor confidence returns.

As bad as this sounds, quite a bit has already been done with subsidies on oil and electricity being cut etc. People will feel the hurt in the short term, but long term it may work out if Zardari and co. don't screw it up (its a tall order I know!).
 
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Thu Oct 23

Islamabad, Pakistan – With Pakistan forced to ask the International Monetary Fund (IMF) Wednesday for help avoiding bankruptcy, its government is learning that having friends in high places doesn't always pay.

Pakistan, a frontline country in fighting global Islamic militancy, counts wealthy nations like the United States, China, and Saudi Arabia among its friends – all of whom understand that Pakistan's shortage of funds will severely handicap its already weak government.

Yet its tumbling economy has caused even its strongest allies to so far resist bailing it out.

"If the economy is out of line," says Haroon Sharif, a senior adviser for the British Department for International Development in Islamabad, "any lender will think twice before handing out cash."

Pakistan, a country that had boasted some of the highest GDP growth rates in the world since 2004, now requires up to $5 billion in immediate cash injections to avoid defaulting on sovereign debt due for repayment next year.

"The government may have been counting on a bailout for a while and now that it's nowhere to be seen they're caught off guard," says Ali Cheema, the head of the economics department at the Lahore University of Management Sciences.

As late as last week Shaukat Tarin, economic adviser to the prime minister, called turning to the IMF for a loan a last resort "plan C."

This week the "Friends of Pakistan" – a group of representatives from the US, Saudi Arabia, the United Arab Emirates, Britain, France, and Japan, among others – met with President Asif Ali Zardari in Islamabad for the second time in as many months to discuss ways to keep the sinking Pakistani economy afloat.

Richard Boucher, the US assistant secretary of State for the region, who attended the meeting, warned that the US "wouldn't throw money on the table" and that there was "not going to be a cash advance for Pakistan."

President Zardari's first-ever visit to Pakistan's longtime ally China concluded last week on a similar note, as have Pakistan's talks with Saudi Arabia and the United Arab Emirates, countries that have pulled Pakistan out of similar economic trouble in the past.

Mr. Cheema says the Pakistani government might have been counting on a "democratic dividend" that didn't deliver. The government assumed that the international community would support the new democratic regime because of its security needs and regardless of its economic performance.

Pakistan has been spending far more on imports than it has been making on exports for several years. As global fuel and food prices spiked, Pakistan's foreign currency reserves have fallen by more than half since 2007 to $7.75 billion.

The current government, which took office this spring, cut down on some spending – such as food and fuel subsidies – but did not boost its revenues by increasing taxes, Mr. Zaidi points out.

The Pakistani rupee also plunged by 30 percent since the beginning of the year, and the Pakistani stock exchange has seen its value drop by a third in recent months.

Part of the problem is lack of expertise, says Mosharraf Zaidi, an independent political-economy consultant in Islamabad.

The Musharraf regime, which ruled from 1999 until August of this year, followed a policy of heavy borrowing and ran up the national debt, he says, while shutting out dissenting voices. The new government, he adds, has largely continued this approach.

Internationally, the Pakistani government has also found itself politically ill positioned in its quest for cash. Relations with the US have frayed this year over how much Pakistan is contributing to the fight against Islamic militants in the country's northwest, bordering Afghanistan.

Former Prime Minister Nawaz Sharif, who remains very close to the Saudi royal family, broke away from the present coalition government in August.

"If the coalition had stuck together they might have been able to convince multiple powers to chip in together," says Cheema."

Corruption is also a concern. Zardari – who took control of the ruling Pakistan People's Party after his wife, former prime minister Benazir Bhutto was killed last year – is widely known as Mr. Ten Percent for his reputation for skimming money off contracts when he served as minister of investments under his wife.

Regardless of who is to blame for the tanking economy, the new government will likely have to cut back on spending. It had introduced many poverty alleviation schemes upon coming to power earlier this year. It might be forced to roll back some of them now, particularly if required to meet certain economic benchmarks by the IMF as conditions to loans.

"If these programs are cut," says Cheema, "it could hurt the social fabric of the country." Large-scale dissatisfaction could lead to more people losing faith in the state, he continues.

"At a time when Pakistan is fighting this war to establish the power of the state," he says, "the last thing you want is another blow to its authority."
 
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Ailing Pakistan needs bitter IMF medicine: former SBP governor

KARACHI: Pakistan needs funding from the International Monetary Fund (IMF) in order to get its economy back on track after problems were ignored during a transition to civilian rule this year, former State Bank of Pakistan governor Ishrat Husain has said. “When the economy is ailing, you go to the IMF, and IMF prescribes you some bitter prescriptions which you have to swallow in order to become healthy,” Husain told Reuters. “It’s not that you need an IMF programme as crutches but you need the IMF programme in order to get back on track.” Husain said an IMF agreement was a prerequisite for any debt rescheduling and Pakistan could have avoided going to the IMF for funding had it managed the economy better from the beginning of 2007, particularly in terms of reducing unsustainable subsidies. “We chocked off the entire payment system of the country and then the transition from the previous government to this government was not managed well,” said Husain. The economy was ignored during this transition with drawn-out political wrangling distracting attention, he said. The lesson to be learnt was that the economy could not be used for narrow political purposes, he said, adding that a key factor of an IMF programme would be controlling the fiscal deficit so it did not exceed 4 to 4.5 percent of gross domestic product. reuters


Daily Times - Leading News Resource of Pakistan
 
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But, what about tax income from karachi?

GOP 60% of revenue comes form customs CBR only collects the rest of 40%(should be lot higher then what they actually collect) Huge huge corruption with in CBR.
 
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But, what about tax income from karachi?

GOP 60% of revenue comes form customs CBR only collects the rest of 40%(should be lot higher then what they actually collect) Huge huge corruption with in CBR.

Same case in india too. Nothing much can be done individually though.:tsk:
 
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