Ah my brohter,
Double edged sword this!
On the surface I totally agree with the premis of not issuing any sovereing guarantees... should be rare on fundamental principles of
National Financial Independence.
The EconomicTerrorism done in the past 10 years is too intense..and it was all due to these
sovereign guarantees scam.. if you throw in the IPPs then all of the 90s have dug a whole for us. But IPP was/is get-rich-quick-scheme. We have discussed that already.
Regarding the downside... well... PakState is desparately short on chasflow to just keep the functioning of the State...with it balooned and totally unnecessary bureacracy... where 1 is needed we have 20.
And then this will limit our room for manuver in the emerging scenario regarding GanguDaesh... so I tend to see it
WeaponisedFinance tool...this policy is.
What is required and what is happening at snale pace is the fundamental reforms in the
GovernanceModel and
StateExpenditure...
easily said than done.. I am aware of it.
IMF was forced upon us... as we discussed
The Ugly Truth about economy section... the
EconomicHitmenSquad is planted... to keep Pakistan squeezed in the
Washington Concensus...
PKR devaluation could have been managed much better than this classic scheme ...by making imports of all but life-saving/edible oils impossible through super hikes in duties.
The trouble is with redemption of debt of past governments... we have already redeemed $10Bln in the first FinYr of this government and this FinYr we have to do about the same... a bit more I believe...
Another area still not under control is the hundi business.
Becuase the actual amount that Pak remit is much larger.. than the official banking channels... by not cracking down on hundi/hawala business government has created more trouble for itself. Again easily said than done..because the
HundiMaffia is too strong.
Besides Hundi is the
fundamental link between
blackmoneymarket and
moneylaundering... because where expats in ME send money through Hundi.. the same Hundi network then uses that money to fill the coffers of
CriminalEnterprise.... TT scandal is just one little tip of the iceberg.
Then there is cash trade/money exchanges of dollars/euros which is still open. With one move it could have been made illegal and all deposites would have been forced to banking sector.
Two benefits:
1- Blackmoney comes into circulation...
2- export of cash dollars to Dubai/Afghanistan/Iran could have been stopped.
Now coming back to the IMF
nakhra ... well... I have never seen such a stringent IMF program for such a small amount of loan... where half of this loan will be repayment of previous loan taken by
NooraRegime.
Put together with FATF... we are truly place between a
FinancialVice and its being tightened around our necks every step of the way.
Now as you know this is directly related to GeoPolitics of Afghanistan, CPEC, Iran and GanguDaesh... so WeaponisedFinance becomes even more clear.
I have no sympathy for the paralysed GoP of PMIK... bad choices of teams after bad choices... and there is a clear indication of takeover by
Maffiaz/CriminalEnterprise of his government...
There is still time... for radical changes... especially towards hundi/moneylaundering... imports and cash dollar hoarding... when combined together you shall see our Forex would grow faster than ever before... thus taking away
the pressure of Artifical Inflation.
True value of PKR is very different even now... I strongly believe PKR is quite undervalued...
So... it brings us back to implants of foriegn powers in FinMin ... and imported FinMinister..with no belongings in Pakistan.
UsadUmar was the First Made in Pakistan Finance Minister.. he was on the right track...worked hard..but Maffiaz wanted him out... the rest you know much better.
Pakistan needs to fence its physical borders with western neighbours... and
even more importantly Pakistan needs to close it FinancialBorders for any EconomicTerrorism.
Sovereignity is directly proportional to what I have said above...
In the Hybridwar and Mushy dumbness we have allowed the forces to make PakState Hollow and Paks unnaturally poor... just so that we be defanged and accept GanguDaesh hegemony.
Please, remember
BloodBorders.... and now superimpose all of the above and internal 'artificial' political instability and designed/managed
Misiformation by MarasiMedia... you will clearly see what I imply.
On a side note... the overall
PensionsWMD in the West (More so in Europe), Asia Pacific and yes, GanguDaesh... is half or equal to the entire GDP of the planet... so global recession is already here... I believe you hinted at such in another thread... Please, also include in the Model credit to asset ratios in EU, US and AsiaPacific... you know what I mean. (BTW: If you have time take a deepr dive into GanguFinances.. pensions, loan-to-asset-ratio...)
We must discuss the
EconomicDrivers of emerging scenario... and that
PowerShift to East is not that smooth...well nothing of such nature ever is...
Hopefully, you can second me when I say:
The Greatest Game is in Town. And Pakistan is The Heartland.
P.S.
Pakistan is NOT a poor country... we don't need FDI... if only Paks invest their money back in Pakistan... GrowthEngine Pak is!
