Pak plans to seek USD 15 bn in new loans to pay external public debt

[kris]

Obviously bunch of uneducated arastotles, Indian piss drinkers , Patwari inbreds decides to come together since they all have a same genetic code and created this news out of their butt.

At least look at the source ... google anything related to Pakistan economy and you will see as if we went bankrupt in 2019 and Chinese replaced Pakistani flag in the Parliament House .

How stupid and moronic above posts really are and look at the usual suspects ..... PML chamchas like batboy are fanning and puking their non existent wisdom all over.

The truth of the matter is this. The money is extremely cheap right now. Although I highly doubt the news there may be a good possibility to pay off expensive loans and borrow at extremely low rate available in the market .

since COVId the yield on bonds is extremely low and LiBoR rate is almost zero.

doea any bloody genius knows what is the LIBOR rate right now?

It’s almost zero or in some cases negative. If one is paying six percent interest and now the money is available at 2 percent ...... do the F.... calculations......15 billion at 2 percent va 6 percent ........
The saving is almost $600 million per year.....

Interesting
Do you have any source?

 

[volatile]

Ever heard of credit worthiness ??? And where did you pull out 2 vs 5 percent interest rate figure . I wouldnt be surprised about the rate . Patwaris left country bankrupt in 2019..


thank God country’s credit worthiness is far far better than the time Patwaris took off to London with their haram mal.....

https://countryeconomy.com/ratings/pakistan
Also the term debt is used which implies Debt to GDP

 

[Flight of falcon]

https://countryeconomy.com/ratings/pakistan
Also the term debt is used which implies Debt to GDP

Sorry where are the interest rates ?

 

[volatile]

can you give a source where the loans are being paid back for what you said? by shaukat aziz. cheers.

https://www.dawn.com/news/404347

Aziz carried out broad-based structural reform and negotiated an unprecedented debt relief initiative, helped by the United States and the Paris Club. This eventually helped free the country from its draconian IMF programme and gave it economic sovereignty.
http://www.shaukataziz.com/biography/

https://tradingeconomics.com/pakistan/interest-rate

The politician took to his official Twitter handle to correct the figures mentioned by newly appointed Minister for Planning Asad Umar, and said that the amount "[is] payable in 20-25 years with the average markup of 2%."
He further claimed that the terms under which the loan has been granted could not be called as "loan" but "a special gift for iron brother Pakistan from China. All energy projects are in IPP mode," he said. Loans under CPEC are not $18b, rather only $5.8b, payable in 20-25 yrs with avg mark up 2%.

https://www.brecorder.com/2019/11/25/547412/pml-n-disputes-cpec-loan-figure/

Sorry where are the interest rates ?

https://tradingeconomics.com/pakistan/interest-rate

These are interest rate + inflation for all periods if you minus inflation the rate of interest comes down the number mentioned .regards

 

[Patriot forever]

We have two problems ,one is local and one is related to intl trade .Tax money is used to make budget and Dollars are needed for trade balance (Import - exports) .Also this payment of 10 Billion is not Dars Loan it comprises of Paris club reshuffling in 2001 by Shaukat Aziz which is closed to 5 Billion US$ remaining are short term loans taken from KSA/UAE ,also PML N avg loan rate was 2% where as PTI avg loan rate is 5% (excluding TBills)

Hi,
Well to my understanding I agree with your first point. People need to understand that you need to repay your loans in dollars. The most important thing is your exports and remittances vs your imports. No matter how good your domestic economy is doing if there is a deficit then you need to take foreign financing to bridge the gap.

Regarding your 2nd point. Do you have a source for 2% and 5% claim? Now the real problem with plmn government was import based unsustainable growth policy, this destroyed the fundamentals of our economy. Our imports grew at unhealthy rates and exports actually decreased yoy, couple this with subsidized dollar rate. A disaster in the making. We ran huge foreign account deficit, there is no way to bridge the gap except foreign loans.

2ndly most people don't understand that the outflow of dollars is not just imports, but the shady exorbant long term return on investment deals plmn signed in their tenure. IPPs, gas terminal etc. These foreign companies shift their profits in dollars abroad.

I welcome your input/ constructive criticism to my post.

 

[Path-Finder]

The politician took to his official Twitter handle to correct the figures mentioned by newly appointed Minister for Planning Asad Umar, and said that the amount "[is] payable in 20-25 years with the average markup of 2%."
He further claimed that the terms under which the loan has been granted could not be called as "loan" but "a special gift for iron brother Pakistan from China. All energy projects are in IPP mode," he said. Loans under CPEC are not $18b, rather only $5.8b, payable in 20-25 yrs with avg mark up 2%.

you see that in itself has many holes in it! claimed to be 2% IF it really was 2% do you really think we would be in this mess?

https://twitter.com/x/status/1262777010612506625

1/9) دو سال میں PTI کو پاکستانی تاریخ کے دو بد ترین بحرانوں کا سامنا کرنا پڑا، ایسی صورتحال میں PMLN/PPP کا سارا الزام پی ٹی آئی حکومت کو دینا سراسر بدنیتی اور سیاسی point scoring کے علاوہ کچھ نہیں۔

2/9)کرونا کی وجہ سے عالمی معاشی بحران اور اس کے پاکستان پر اثرات دیکھ کر ن لیگ کے رہنما آج کل دوبارہ اپنے دور میں GDP کی شرح کی بات کرنے لگے ہیں، لیکن ان کے دور میں یہ شرح اوسطً زیادہ ہونے کے باوجود پی پی پی دور میں تقریباً 13 لاکھ زیادہ لوگوں کو نوکریاں ملی۔

3/9)وجہ یہ ہے کے ن لیگ کے دور میں معیشت کا انحصار اضافی Imports کےاستعمال پر رہا،Exports کم ہوتی رہی تجارتی خسارہ پورا کرنے کیلیے بیرونی قرضے بڑھتے رہے، 2013 میں جو کرنٹ اکاونٹ خسارہ 2.5$ارب ڈالر فی سال تھا وہ 2018 میں 20ارب ڈالر تک پہنچ گیا اور قرضے میں 35ارب ڈالر کاُاضافہ ہوا۔

4/9)مطلب خسارے بڑھنے کی وجہ سے اب ایک سال میں 17.5$ ارب ڈالر اضافی چاہیے تھے اور Imports کی ادائیگی کے لیے مارکیٹ میں ڈالر کی طلب بڑھنے سے روپے کے مقابلے میں ڈالر کی قیمت بھی بڑھ گئی۔ ڈار صاحب نے خسارہ کم کرنے کی بجائے artificially قرض اورسٹیٹ بنک کے زخائر سے روپے کو مستحکم رکھا

5/9)2017 جون میں زرِمبادلہ کے زخائر 16$ ارب ڈالر تک تھے جو جون 2018 کے 9$ ارب ڈالر رہ گئے، مطلب اس پالیسی کے تسلسل کے لیے 7$ ارب ڈالرسٹیٹ بینک کے زخائر سے اور اسی سال 11$ ارب ڈالر نئے قرض کی مد میں لیے گئے۔ نئی آنے والی پی ٹی آئی حکومت کے لیے یہ پالیسی برقرار رکھنا نا ممکن تھا

6/9)یہ صرف بیرونی معملات کا حال تھا، PIA,Railway,PTV,Pakistan Post, Steel Mills سمیت دیگر اداروں کا سالانہ نقصان 450 ارب،گردشی قرضہ 1300ارب تک پہنچ چکا تھا اور ن لیگ حکومت کے صرف آخری ایک سال میں گیس اور بجلی کے شعبوں میں 600ارب کا گردشی قرض بن گیا۔

7/9)اب نا تو سٹیٹ بنک کے پاس اتنے زخائر تھے کے دوبارہ 7ارب ڈالر خرچ دے اور نا ہی اس صورتحال میں سستا بیرونی قرضہ ملتا۔ لحاضہ حکومت نے دوست ممالک کی مدد لی، روپے کی قدر کو کم کیا اور ساتھ میںIMF لیا، ان سخت اقدامات سے امپورٹس سے ہونے والی GDP گروتھ کی شرح کم ہوئی اور مہنگائی آئی

8/9)لیکن پاکستان دیوالیہ ہونے سے بچ گیا، کرنٹ اکاؤنٹ خسارہ 20 ارب ڈالر سے کم ہو کر موجودہ مالی سال میں 6$ارب ڈالر تک رہنے کی توقع تھی، حکومت کی مکمل ترجیح Exports میں اضافے، tourism, نئی سرمایہ کاری سے ہونے والی گروتھ پر تھی۔ زرمبادلہ کے زخائر، ٹیکس رونیو، اور exports میں

9/9)مسلسل اضافہ دیکھا جا رہا تھا، مہنگائی کی شرح کم ہورہی تھی، عالمی ادارے دوبارہ معیشت مستحکم ہونے کی بات کر رہے تھے۔ لیکن پوری دنیا میں کرونا لاک ڈاؤن کی وجی سے export order رک گئے، پاکستان میں صنعت بند کرنی پڑی، ان حالات کی وجہ سے پاکستان سمیت پوری دنیا کے بیشتر ممالک کو

10)منفی گروٹھ کا سامنا ہے۔ لیکن مہنگائی کی شرح کم ہوئی ہے، حکومت نے معیشت کو سہارا دینے کے لیے مختلف پیکج دیے ہیں جو دوسرے کافی ترقی پذیر ممالک سے زیادہ ہیں۔ کرونا سے پہلے حاصل کے گئے fundamentals ابھی بھی قائم ہیں۔ کرونا ختم ہونے کے بعد پاکستان دیرپا ترقی کی راہ پر گامزن ہوگا۔IA

https://threader.app/thread/1262777010612506625

https://twitter.com/x/status/1260487469063118853

https://twitter.com/x/status/1258297232417345536

https://twitter.com/x/status/1267044663070019584

https://twitter.com/x/status/1267044669415919616

 

[Cookie Monster]

pay your taxes which lets be honest the quom doesn't want to. you live in yankee land. I know if you don't pay your taxes then what happens to you! IRS and then jail.

Then its the export industry that has taken a global hit. you have to sell to get the money in your coffers. I personally believe this COVID has been blown out of proportions and I am glad things are opening up but as soon exports were supposed to be taken up and imports reduced bleeding COVID-19. non essential imports have been reduced.

the loans negotiated by that swine dar with their interest rates means 15 billion that is being borrowed, 10 billion will go to debt servicing!

some sneaky tooi wal will try to say oh look they are borrowing from IMF. harami mofo's paying off the loans you took and depleting the reserves to artificially keep the rupee up is killing the nation.


I am amazed at the tooi wal on this thread the harami mofo's its your swine leader that has brought the country to this! Why doesn't mian take its poojari to london when it goes.

I'm not ashamed to admit I don't know much about economy and all the technical terms...if u have such knowledge and can find out the nitty gritty details and explain to me in laymen's terms about how this loan would better the situation...I'm all ears.

I don't make it about this party or that party...I'm not some jiyala or patwari. My wish is simple...which is to see the nation prosper...so that ppl don't suffer and can live a respectable life. My post was based on the general notion...that if I take a loan of let's say a $100 dollars...then to pay off that I take a loan of $150 to pay it off and it's interest...then another loan of $300 to pay the $150(plus interest)...
...u can see how it becomes very unsustainable very fast. The previous governments have been doing this...and the total debt has only grown over decades.

But if this case is different...plz do tell...I want to know more about this.

 

[313ghazi]

If anyone has ever been in debt you'll know it makes sense, as long as the money you are borrowing is on a lesser interest rate than that which is being incurred by the debt you are paying off.

Always a terrible place to be, but not the end of the world.

 

[wali87]

Excellent, the people of our country deserve this tabdeeli in all its glory. after all they all voted for it didn’t they. This is what happens to people who are thankless and are constantly concerned with what the other person is up to. Blaming everyone but themeselves for what all is wrong in their lives instead of lookin in their own giraibaan. Whether it’s their neighbour, their family, their colony, their friends or their leaders. Never happy with who is running the country. I am pretty sure imran Khan will get the same if not worse abuses for the rest of his life by the time his romance with the PMship is over. Benazir ko Nawaz se Zaleel krwao, Nawaz ko zardari se, zardari aur Nawaz ko imran se aur ab imran ko kisi aur se. So the problem is not with the leaders it’s with our people's brain. They believe everything they see on tv because they want to. Even if they know it’s wrong. And the source of all that is one thing alone ‘Hasad.’

Every single person in this country watches some YouTube, a few documentaries and thinks he can do any job better than the other. Whether it’s running a country or a khokha.

 

[Cookie Monster]

If anyone has ever been in debt you'll know it makes sense, as long as the money you are borrowing is on a lesser interest rate than that which is being incurred by the debt you are paying off.

Always a terrible place to be, but not the end of the world.

Yes...that would be great. Anyone here know how much was the interest rate(s) of the previous loan(s)...as compared to this new one?

 

[Turingsage]

Explain why IMF is not allowing SBP to print money for its own government and its own people?

You take loans under conditions. When I take a loan from the bank for my business the conditions are I need to use it to upgrade equipment say. If I choose instead to take a trip of all the casinos in the world then the IMF which loaned you the money is going to object.

There is a way out. You do not have to listen to the IMF or anyone for that matter. NO ONE CAN STOP YOU . START THE PRESSES AND PRINT THE MONEY.
IMF WILL NOT EVEN ISSUE A PEEP AS LONG AS ITS YOUR MONEY AND NOT IMF's THAT YOU WANT TO PLAY RUSSIAN ROULETTE WITH.

These lies about IMF forcing things. IMF is not the one going around begging for loans. Its Pakistan government, that IK is in charge of, that is begging for money from the IMF. As a lender of course its going to have conditions,especially these LOW LOW LOW interest rates with LONG LONG repayment periods

You want to print money , go ahead, but do not involve the IMF in your shenanigans.

 

[Path-Finder]

I'm not ashamed to admit I don't know much about economy and all the technical terms...if u have such knowledge and can find out the nitty gritty details and explain to me in laymen's terms about how this loan would better the situation...I'm all ears.

I don't make it about this party or that party...I'm not some jiyala or patwari. My wish is simple...which is to see the nation prosper...so that ppl don't suffer and can live a respectable life. My post was based on the general notion...that if I take a loan of let's say a $100 dollars...then to pay off that I take a loan of $150 to pay it off and it's interest...then another loan of $300 to pay the $150(plus interest)...
...u can see how it becomes very unsustainable very fast. The previous governments have been doing this...and the total debt has only grown over decades.

But if this case is different...plz do tell...I want to know more about this.

I am not an economist either, I am learning as I go along. I too want to Pakistan to prosper. But Pakistan cannot proper until the ordinary person has at least core understanding of economics but we have a jahil qaom which has phutto, tooi for their idols. these two could never come to power in any other nation but only in Pakistan.

 

[Patriot forever]

If anyone has ever been in debt you'll know it makes sense, as long as the money you are borrowing is on a lesser interest rate than that which is being incurred by the debt you are paying off.

Always a terrible place to be, but not the end of the world.

I agree but the main underlying problem in our economy is unsustainable import based model of plmn. If you are runing a foreign account deficit, than you need to borrow firstly to balance your external account deficit, 2nd for the interest and 3rd to repay principal mount. If we understand these 3 factors we will understand the debt trap that Pakistanis in. Plmn destroyed he fundamentals of our economy. Unless we address this basic flaw in our economy we can not overcome this crisis.

 

[Path-Finder]

@Arsalan can you control these indians here thanks!

 

[Cookie Monster]

I am not an economist either, I am learning as I go along. I too want to Pakistan to prosper. But Pakistan cannot proper until the ordinary person has at least core understanding of economics but we have a jahil qaom which has phutto, tooi for their idols. these two could never come to power in any other nation but only in Pakistan.

Right...that's great and all...but it will take generations of hard work to educate the awam...that's not my concern(right now)...neither are the corrupt assholes of PPP, PML-N, PML-Q, MQM, and all the other clowns.

My concern is for the now and the future. One of the main reasons PTI was able to come to power is bcuz ppl had enough of trying the previous clowns over and over and getting nowhere. This however doesn't mean that PTI should get a free hand. Any leader in a democracy is subject to scrutiny. All I wanna know is...whether this new loan is a step in the right direction or the same old "new bigger loan to pay off the previous one"(like what other parties did). For that...it is important to know the details. I would highly appreciate if someone who knows these things can better explain.