In future, policymakers should start discussing: " should Pakistan default" ? If a short term bitter pill of default can lead to massive debt restructuring and this crisis leads to stopping subsidies to ultra rich, this option should be explored..
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It is Independent. But State Bank is not going to let the Government default on local debt. Of course it can issue bonds to cover some of the printed money.Pakistan's Central Bank (Reserve Bank) is not independent, right? So, the government can ask them to create as much money as they want? With Pakistan's current inflation rate, that is not going to be a pretty sight.
پی ڈی ایف کے سب سے بڑے حرامخوروں میں اریش کا نام سب سے اوپر ہے
And raise inflation which is already hitting near its historical highs?It is Independent. But State Bank is not going to let the Government default on local debt. Of course it can issue bonds to cover some of the printed money.
And what if they don't rollover?I think most of the debt is institutional (IMF, Paris club, ADB etc..) or Bilateral (like China), they won't benefit. I think there is very little private debt (i.e., investors) due to Pakistan being not investment grade for more than 20 years.
And what if they don't rollover?
IMF asking for additional taxes of 800bn for 9th review, which is not possible in this poor economic situation.
Without IMF, China and other financial institutions are not going to help. UAE asking for assets in return.
Pakistan needs $32bn to repay debt in this FY with $18bn from IMF and $14bn from other sources. If IMF programme deosn't hold or debt doesn't get rollover, Pakistan is going to default.
$3bn paid last quater with $1bn to pay on sukuks next month and SBP reserves stand at just $7.96bn.
its very simple sirIf Pakistan go default, what would be the effect on currency.
Excepted but how bad are we looking at? Dollar at Rs 400 Rs 600?
5000 at least.Excepted but how bad are we looking at? Dollar at Rs 400 Rs 600?
Also what would be the effects on real estate market?
As of 19 September, WalletInvestor’s USD/PKR forecast for 2022 showed the pair trading at 230.441 by the end of the year and 244.448 by the end of 2023. The site’s USD/PKR forecast for 2025 showed the pair trading at a new high of 272.601 by the end of the year.5000 at least.
Real estate will be hit hard as well because of the falloff in demand.
Eventually PKR will have to be ditched and we will be using either USD or RMB
if go default then it will be 350 to 400 sirExcepted but how bad are we looking at? Dollar at Rs 400 Rs 600?
Also what would be the effects on real estate market?