Govt can no longer borrow from state bank, a sad day.

[Gorgin Khan]

Bro there is a big difference between borrowing from local commercial banks and SBP. What happened in the past is this injection was balanced off by subsidizized dollar to contain inflation compounding our BoP situation. This SBP autonomy is an absolute must for sustainable growth so we don't end up with the same cycle of repeated boom (artificial growth) and bust (correction phase).

Fisical deficit needs to be financed that's why government borrows. Our deficit is not due to government spending ( primary deficit) but due to debt and interest payments. ( Primary deficit + debt obligations = fiscal deficit).

You and I both know what has caused the circular debt to spiral out of control. Unless we adjust capacity payments completely in tariff circular debt will rise ( this is the main reason why IMF is demanding increase in electricity tariff). Our recovery head at Disco level is at 97% a huge increase , our T&D losses are grossly unchanged ( marginally decreased as well). On the other hand our capacity payments have swelled to trillion rupees a year due to coming online of 2015 IPP's. Government has contained this Capacity payment increase to ~ 400-500b range ( same level as plmn years when capacity payments were just 400b per year) by tariff increase and increasing collection under recovery head and marginal reduction of T&D losses ( T&D losses are built into tariff for decades).
Remember PPP left circular debt at just 200b per year vs now projected 1.4 trillion in 2023 due to IPP's under 2015 policy.

Please please tell me you know the difference between BORROWING from the local banks through T bills etc and simply printing money through state bank………

.
Please before you try to be Ishaq Dar at least read your grade five economics book.

And where in economics is this borrowed money coming from to banks ? doesn't State bank regulate banks ? Borrowed money is also printed Money which is either in form of bank deposits + savings coming from common man etc or the State bank prints currency to replace old currency , maintain supply demand ,issues bonds , Bills to borrow money ....

Now if the government borrows from state bank or commercial bank its the same because currency + policy being controlled by state bank .... Secondly Internal debts includes money borrowed from State + commercial Banks . Just the actors has changed governer of state bank can print money without any check and balance to support the policy of qareebi yaar dosts Local+International (IMF) through influencing and lending through commercial banks...... There will be no check and Balance...... This is called free flow of currency

 

[Enigma SIG]

Slowly but surely you guys will get educated enough and learn Pakistan cannot be forcibly converted into Scandanavia.

Why Scandinavia when even Somalia is getting a run for its money.

 

[notorious_eagle]

Thank you for admitting it again.

At least you guys have stopped saying that the 5.2% GDP Growth Rate was fake or that the PSX reaching record high of 52,876.46 points was also manipulated.

Slowly but surely you guys will get educated enough and learn Pakistan cannot be forcibly converted into Scandanavia.

Darnomics hahahaha hahahah

Economic growth all fake fueled by imports and figure fudging by Dar. That's why he ran from the country cause the 420 knew, his time was up. Even Nawaz Sharif ran from the country. What a bunch of thieves.

 

[blueazure]

Please please tell me you know the difference between BORROWING from the local banks through T bills etc and simply printing money through state bank………

.
Please before you try to be Ishaq Dar at least read your grade five economics book.

ok boy genuis

tell me,

how will govt return these loans to commercial banks , with interest ?

If you had studied economics, you would have understood the difference between 'Printing Money' and 'Borrowing'.

ok mr phd in economics, please tell me how govt will return this borrowed money from comm bank ? with interest

Bro there is a big difference between borrowing from local commercial banks and SBP. What happened in the past is this injection was balanced off by subsidizized dollar to contain inflation compounding our BoP situation. This SBP autonomy is an absolute must for sustainable growth so we don't end up with the same cycle of repeated boom (artificial growth) and bust (correction phase).

nopes

you either borrow money from comm banks and return it with interest

or

you print money and return the loans ( aka inflation of currency)


its a zero sum game

----
comm banks make a killing here, their loans are guaranteed to be returned(with interest) given the fact that govt can either print money or apply certain taxes

At least you guys have stopped saying that the 5.2% GDP Growth Rate was fake or that the PSX reaching record high of 52,876.46 points was also manipulated.

Slowly but surely you guys will get educated enough and learn Pakistan cannot be forcibly converted into Scandanavia.

PSX hit 52k in apr 2017

PSX hit 48 k last month

but

OP will say nawaz era growth was fake /synthetic

PTI growth is real

------

hypocrisy !

 

[blueazure]

And where in economics is this borrowed money coming from to banks ? doesn't State bank regulate banks ? Borrowed money is also printed Money which is either in form of bank deposits + savings coming from common man etc or the State bank prints currency to replace old currency , maintain supply demand ,issues bonds , Bills to borrow money ....

Now if the government borrows from state bank or commercial bank its the same because currency + policy being controlled by state bank .... Secondly Internal debts includes money borrowed from State + commercial Banks . Just the actors has changed governer of state bank can print money without any check and balance to support the policy of qareebi yaar dosts Local+International (IMF) through influencing and lending through commercial banks...... There will be no check and Balance...... This is called free flow of currency

you forgot to add something --

SBP injects $1.2b to stabilise rupee | The Express Tribune

Central bank move contrary to its own, IMF and finance ministry policies

tribune.com.pk

-----------------------------------------
IMO, the control of ship is lost

 

[Patriot forever]

ok boy genuis

tell me,

how will govt return these loans to commercial banks , with interest ?



ok mr phd in economics, please tell me how govt will return this borrowed money from comm bank ? with interest



nopes

you either borrow money from comm banks and return it with interest

or

you print money and return the loans ( aka inflation of currency)


its a zero sum game

----
comm banks make a killing here, their loans are guaranteed to be returned(with interest) given the fact that govt can either print money or apply certain taxes



PSX hit 52k in apr 2017

PSX hit 48 k last month

but

OP will say nawaz era growth was fake /synthetic

PTI growth is real

------

hypocrisy !

Who told you state Bank lends the money without interest . Its called the repo rate at which State Bank lends money. Just like the federal Bank controls the dollar supply same way SBP job is to regulate rupee.
Over supply in the market drives consumption and ultimately inflation.

All plmn did was flooded the market with money, now in the scenario of increased consumption they artificially manipulated currency to keep the inflation low.

They did everything they can to destabilise Pakistan.
Money prinring
Currency manipulation
IPP agreements
Stagnant exports
Increased imports
Remittances minimal increase due to overvalued rupee
IT Big zero.



Why did the kse index fell afterwards?
They all partied after the party was over and Pakistan was going bankrupt and can not sustain this artificial milk and honey rivers they pulled back and kse index dropped.

 

[Patriot forever]

And where in economics is this borrowed money coming from to banks ? doesn't State bank regulate banks ? Borrowed money is also printed Money which is either in form of bank deposits + savings coming from common man etc or the State bank prints currency to replace old currency , maintain supply demand ,issues bonds , Bills to borrow money ....

Now if the government borrows from state bank or commercial bank its the same because currency + policy being controlled by state bank .... Secondly Internal debts includes money borrowed from State + commercial Banks . Just the actors has changed governer of state bank can print money without any check and balance to support the policy of qareebi yaar dosts Local+International (IMF) through influencing and lending through commercial banks...... There will be no check and Balance...... This is called free flow of currency

My God, the level of ignorance of this post.

Let me explain in simple terms,

Consider a swimming pool (market) with water (currency)

SBP lending to government increases water in the pool, commercial bank lending to government decreases water in the pool.
The more the water in the pool the lesser its worth, the more inflation.

 

[BATMAN]

here comes gem post by another patwari.
import driven growth is a good growth to this member ….

looks like Ishaq Dar trained the next generation of Cho…..Patwaris very well…

P.S ….. Cho…. Is not what you guys are

I don't know what exactly you have in mind when you say ''import driven growth''

One thing i know for certain, during the rule of Imran Khan, state sponsored smuggling broke all records in mere 3 years.

Markets and houses are filled with smuggled goods and this is how the advantage of foreign remittances is neutralized and this is why FBR fail to earn revenues, despite taxing heavily to consumers in Pakistan.

 

[Flight of falcon]

My God, the level of ignorance of this post.

Let me explain in simple terms,

Consider a swimming pool (market) with water (currency)

SBP lending to government increases water in the pool, commercial bank lending to government decreases water in the pool.
The more the water in the pool the lesser its worth, the more inflation.

I swear reading this guys posts lowers my IQ

 

[BATMAN]

Darnomics hahahaha hahahah

Economic growth all fake fueled by imports and figure fudging by Dar. That's why he ran from the country cause the 420 knew, his time was up. Even Nawaz Sharif ran from the country. What a bunch of thieves.

So now economic growth is negative because Dar is no more?
BTW, are you an economist or simple blame shifting as it appears.

 

[Flight of falcon]

I don't know what exactly you have in mind when you say ''import driven growth''

One thing i know for certain, during the rule of Imran Khan, state sponsored smuggling broke all records in mere 3 years.

Markets and houses are filled with smuggled goods and this is how the advantage of foreign remittances is neutralized and this is why FBR fail to earn revenues, despite taxing heavily to consumers in Pakistan.

Wow….. only one Patwari would
Know what other patwaris are doing.

So now economic growth is negative because Dar is no more?
BTW, are you an economist or simple blame shifting as it appears.

Seriously stupid comments …. Pakistan growth rate was 4 percent last year expected around 4.5 percent and it will be a REAL growth driven by exports .

please enlighten-me using your Patwari mind this negative growth concept .

 

[BATMAN]

Majority is authority, this is what democrasy is

Unfortunately ruling party has <10% public representation, which is shamocracy and this is the system we have in Pakistan.
People in street are full of anger and this is not sustainable by any means, even if they introduce rigging machines aka EVM.

Wow….. only one Patwari would
Know what other patwaris are doing.

Why is PoTI so deadly against computerizing of land record, that they want every one involved in the plan to be jailed or removed from jobs?

 

[Flight of falcon]

Unfortunately ruling party has <10% public representation, which is shamocracy and this is the system we have in Pakistan.
People in street are full of anger and this is not sustainable by any means, even if they introduce rigging machines aka EVM.

I have known you for years and read your countless posts …. If I was you I would go get some education and learn few things.

Dad’s negative growth concept taught to Patwaris. From ADB:

 

[Gorgin Khan]

My God, the level of ignorance of this post.

Let me explain in simple terms,

Consider a swimming pool (market) with water (currency)

SBP lending to government increases water in the pool, commercial bank lending to government decreases water in the pool.
The more the water in the pool the lesser its worth, the more inflation.

Hahaha What an example...... The problem is all are operating in the same swimming pool ..... while the water (currency) is controlled by a single tap (State Bank) .... You get money from swimming pool or you go directly to the tap is same thing........

Swimming pool may Ghota laga kar nahao ya balti say nikal kar pani wohi hay bhai ata aik hee nal say hay........ Unfortunately now our own tap is not in our own control....

 

[Patriot forever]

Hahaha What an example...... The problem is all are operating in the same swimming pool ..... while the water (currency) is controlled by a single tap (State Bank) .... You get money from swimming pool or you go directly to the tap is same thing........

Swimming pool may Ghota laga kar nahao ya balti say nikal kar pani wohi hay bhai ata aik hee nal say hay........ Unfortunately now our own tap is not in our own control....

Bro agar nal khol kay bhul gao to pura ghar dob gye ga BTW you still didn't understand that example.

You are great, we should probably hire extra workers and more printers at SBP and print our whole debt, will take a couple of weeks if we run it 24/7. The person who does that should be made our national hero.

The only problem is once we do it every single Pakistani has to carry a bag full of cash to buy bread. Probably will also need to upgrade our printers to print Rs 5 million note instead of Rs 5000.