IMF rejects borrowing request

[Wood]

See this is the problem out of the box thinking has, people are so use to thinking in their old ways that they cannot persevere things. pegging your currency only works with an active inclusion of the master country. This will allow China to lock in trade and help grow both our economies. This will also allow them to have a say in our economic development. Unfortunately slower methods will not work but revolutionary finical thinking will work. Why not have a flat tax in Pakistan at 10% but all have to pay it . Done by Poland in the 90s see where they got. Pegging done by UAE, Saudi, Brazil and see where they got.
I am suggesting creating a trading block like the euro on yuan….. I see that I did not spell this out. It could possibly be paksitan , China , Afghanistan Bhutan……..and maybe Russia.

to increase trade you need an industrial base and for that you need trained manpower and standards which all can only come if you invest in your people. We unfortunately are only able to pay debts to get out of this squeeze trap we need to work on growing our industrial base. We as a country have successfully destroyed our industrial base by continuously increasing our tax base for the 2 % of the population which pays taxes

i did not read your profile you are an Indian, my mistake should not have argued as you do not understand Pakistan’s problems

k

Pegging your currency means your central bank will manipulate forex reserves to keep a stable exchange rate between PKR and the currency it is pegged against. It does not mean that your monetary policy will be dictated by the currency that PKR follows. It does not even mean that the country whose currency you peg against will have to take your foreign debt. HKD is pegged against USD - does that mean Hongkong is run by US?!

You want China to take over Pakistan's external debt. This does not require currency pegging. For this, China should have confidence in Pakistan's economy - not the other way around. It is the Chinese who will need the balls for it. Not Pakistan

Finally, the strategy of currency pegging is used to have an artificially depressed exchange rate of PKR against the pegged currency. This will only yield results if you are able to actually export manufactured goods to China. But your first problem is Pakistan lacks the capability to peg against Chinese Yuan without running into hyper inflation. Also, the Chinese don't import any manufactured goods from Pakistan despite the FTA - because they simply manufacture everything other than high tech upstream goods better than anyone else can!

 

[HAIDER]

Pegging your currency means your central bank will manipulate forex reserves to keep a stable exchange rate between PKR and the currency it is pegged against. It does not mean that your monetary policy will be dictated by the currency that PKR follows. It does not even mean that the country whose currency you peg against will have to take your foreign debt. HKD is pegged against USD - does that mean Hongkong is run by US?!

You want China to take over Pakistan's external debt. This does not require currency pegging. For this, China should have confidence in Pakistan's economy - not the other way around. It is the Chinese who will need the balls for it. Not Pakistan

Finally, the strategy of currency pegging is used to have an artificially depressed exchange rate of PKR against the pegged currency. This will only yield results if you are able to actually export manufactured goods to China. But your first problem is Pakistan lacks the capability to peg against Chinese Yuan without running into hyper inflation. Also, the Chinese don't import any manufactured goods from Pakistan despite the FTA - because they simply manufacture everything other than high tech upstream goods better than anyone else can!

People should pay taxes, otherwise, there is no solution.....IMF should impose loan ban.

 

[doorstar]

People should pay taxes, otherwise, there is no solution.....IMF should impose loan ban.

and should stop enriching meter readers by stealing gas, water, electricity.

 

[HAIDER]

and should stop enriching meter readers by stealing gas, water, electricity.

Imagine ... now rishwat khor increase the rate .. because ... sir ji ajkal sakhti bhoot hogai ha...

 

[Wood]

People should pay taxes, otherwise, there is no solution.....IMF should impose loan ban.

While an improvement in your tax to GDP ration will certainly help, I'm afraid that is not enough to solve all of your macro economic problems.

I suspect Pakistan will have the similar problems to that in India - high cost of logistics that make your production cost higher than it should be given the cheap availability of labor

 

[Leviza]

you mean it was a good idea when fat pandit made it print billions at each election time?

before the pandit filth got their hands on SBP, Rupee was worth more than 16 American cents now it is less than 0.55 cents

Mine was not political post but as u think it is then here is your answer

If you think this joker and selected person is doing right by taking dictation from IMF then you need to see doctor

what was the bloody $$ rate when last govleft and what is now ? Don’t give me that it was due to last gov because even then this joker is a fool who cant manage it even after 3 years

where is that intellectual Asad omer who always used to do claim to be financial intellectual of PTI ? Failed in a year

Is there a point in arguing with you ? Nope

 

[Shotgunner51]

they simply manufacture everything other than high tech upstream goods better than anyone else can

Wrong. Even in a trade war with US/EU, last year China high tech exports further expanded to $757.7 billion (not even including Hong Kong's $340 billion which largely comprised of re-exports), that's over 5 times of US. In fact high tech has become increasingly heavy in China exports, constituting 30% of overall, way higher than US or world average. China not just not just manufacture high tech goods but exports to the world on a scale unmatched by anyone.

Of course China does import manufactured goods but most got nothing to do with tech, say being largest market for Mercedes and almost half of world's luxuries. Maybe a Porsche Cayenne SUV can be labelled as "high tech" by UN definition, don't tell me a LV handbag is, or a pair of Salvatore Ferragamo shoes.

Business is far more than just manufactured goods. Australia exports 95% of their lobster to China, Norway exports salmon, Philippines exports mangoes, there are a lot more export opportunities from any country than you can imagine.

World Bank Open Data

Free and open access to global development data

data.worldbank.org

China to account for nearly half of luxury goods market by 2025

The global personal luxury goods sector will grow by up to 6% this year according to a new analysis by Bain & Company, lifting the industry to a market value of around €276 billion.

www.consultancy.asia

 

[Vanamali]

There is a solution we switch to yuan , allowing China to pay our debt and give us a better deal.

we could have a very positive forward looking financial outlook , but for this the current government needs b a l l s

k

Instead become part of China... Enjoy the perks of developed country without moving finger...
Down side is you have sell your soul by becoming irreligious...

 

[SuvarnaTeja]

How will Pakistan pay for imports without $? Consider that your primary import is Oil. You need $10 billion worth of it every year

Saudi Arabia is Muslim brother country of Pakistan and gives oil to Pakistan for free or credit. So Pakistan does not have the same issue as India.

Instead become part of China... Enjoy the perks of developed country without moving finger...
Down side is you have sell your soul by becoming irreligious...

Only useless people talk about soul. Merging India and Pakistan with China is the way forward.

 

[Wood]

Saudi Arabia is Muslim brother country of Pakistan and gives oil to Pakistan for free or credit. So Pakistan does not have the same issue as India.


Only useless people talk about soul. Merging India and Pakistan with China is the way forward.

Pakistan's biggest import is oil. It is not a secret.

 

[SuvarnaTeja]

Pakistan's biggest import is oil. It is not a secret.

You assumption that Pakistan requires dollars is wrong.

Pakistan gets majority of Oil and Defense equipment for free or on credit.

 

[Kaleem.61]

Slaves of IMF,
Slaves of WB,
Slaves of FATF:

Borrowed money to live lavish life, to educate children from foreign countries, to make properties in foreign countries.

Staying here just to rule the country!
Their priorities are to loot as much as they can...!!!

A common person is living his life and not even getting proper treatment facilities but paying 1/3 of his income as tax and now responsible for paying 300k! Why???

They will not be living in Pakistan but we!!!

 

[Imran Khan]

good IMF also force gov to sale PIA /RAILWAY/STEEL MILLS / PTV/RADIO /and all the gov run bussinesses too . thank you IMF and FATF

 

[Vanamali]

Saudi Arabia is Muslim brother country of Pakistan and gives oil to Pakistan for free or credit. So Pakistan does not have the same issue as India.


Only useless people talk about soul. Merging India and Pakistan with China is the way forward.

It's Pakistan facing economic crises and requires support not India.. World has long back de-hyphenated India and Pakistan... Please dont live in past

 

[SuvarnaTeja]

It's Pakistan facing economic crises and requires support not India.. World has long back de-hyphenated India and Pakistan... Please dont live in past

Pakistan's external debt is only 115 Billion while Indian external debt is 550 Billion.