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

[SHAH BAAZ]

This is what happens when you leave your Islamic Roots and forget Allah.

He will make ypu forget who you are!!!!

These corrupt devils are picking a war with Allah and dealing with forces who are directly in War with Allah. When will The Muslims Wake Up!!!! It doesnt take many people to bring a change when you are on the Haq and the Cause of Allah!!!!!

SAHIH INTERNATIONAL
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah . But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.

 

[Jungibaaz]

There is a fine difference between between incompetence and having no choice.
His cabinet is filled with looters and you may justify it by saying he had no choice.
But the thing is , the people voted for him so that those looters dont come to power. The first 2 years the people have patiently waited, we will see what happens

I agree. I’m in fact a critic of this government too, just recently I’ve been accused of being grossly biased against IK and PTI. The best approach imo, is that they should be criticised for what they are responsible for, but not for what they are not.

The current financial crisis is certainly not the fault of the current government, it’s built up over a long time. I will say however, that IK does deserve criticism for saying things like we won’t take loans, for promising progress it would not be possible to deliver.

In election season, I was saying both on the forum and to friends and family that support PTI, that their manifesto and election promises are fantasies. On day one, they’ll be faced with a looming financing crisis, and they will be forced to do the opposite of what they promised. I told their supporters that IK will have no choice but to disappoint you on fiscal policy, borrowing etc. Instead of jobs, homes and employment, expect shrinking growth, austerity and inflation. I was met with blank expressions and confused looks. So this aspect is something IK is rightly paying the price for. Blindly made promises that are being broken.

 

[volatile]

• pmnl borrowed 24 billion in 5 years,

• PTI has borrowed 13.5 billion in first year.

• 28 Billion is the debt that MUST BE RETURNED IN ~3YEARS.

• of the 28 billion 23 Billion is actual money and 4.5 Billion is interest!

• 2020-2021 ~10 BILLION MUST BE RETURNED!!

https://nation.com.pk/26-Dec-2017/government-got-record-40b-loans
Read this article and you will understand who is paying whose loans so we can safely say every one is paying every one pay backs

what are your views about mortgaging Pakistan's infrastructure for euro bonds? Then floated the bonds in the market and purchased them by using frontmen and jacked the interest rates too? In 2013 dar on 500 Million dollars worth of eurobonds decided to give 450 million dollars in interest! Investigation showed to purchase these bonds 75 Million dollars went from Pakistan! When the current gov came to power it had to pay a billion dollars on the 5 year term of the bonds otherwise the country would have defaulted.

Its not mortgaging its sukuk (A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia. Sukuk involves asset ownership while bonds are debt obligations) Do try to understand the difference between 2 .

• 2021-22 ~9 BILLION MUST BE RETURNED.

• 2022-23 ~8 BILLION MUST BE RETURNED.

Lets see what SBP figures were in 2018 and now

http://www.sbp.org.pk/reports/stat_reviews/Bulletin/2018/Sep/InternalExternalPublicDebt.pdf
It was 86 Billion in June 2018 with debt to GDP of 72% where as it is currently 110 Billion US $ in 2020 June so do the maths If PTI is paying back loans why figure is going UP ?

?? what has this got to do with miftah admitting they spent 8 billion falsely floating the rupee! one of many other valid points here,

https://tribune.com.pk/story/2140409/2-sbp-poured-24b-inter-bank-market-two-imf-programmes/?amp=1
Among the 24 Billion injected from 2008 onwards 7.5 Billion is done by PTI so in this case PTI is injecting more money by the way its normal SBP operations they collected back as well when needed to stablize

 

[Patriot forever]

Kindly dont destroy the economics by saying such things . Our import started to grow with difference from 2001 it was Shaukat Aziz model which provides 2 things ,one GDP to debt reduction and stimulus growth ,

However this exponential growth has lead to serious dis balance of infrastructure vs demand IPP is one example .To added insult to injury we were fighting WOT with no or little electricity .


I understand your viewpoint. But you are oversimplyfing things. Has this model resulted in GDP to debt ratio reduction in PPP or PLMN term afterwards? Its all about the balance. Has our external deficit situation this dire in his tenure. Solely relying on import expansion without taking into account and strangulating your own local and export industries is a formula for disaster, it only leads to one end.
2nd please take into consideration type of investment or financing taken and its contribution to your economy. Electricity was in no doubt the need of the hour, but it has meet certain merits and be sustainable to our local economy. Was the debt taken really beneficial in Quaid e Azam solar park or Lahore metro train, choosing imported coal instead of thar local?

 

[Path-Finder]

you typed in the quotes just cut and paste it out in edit.

 

[Patriot forever]

Kindly dont destroy the economics by saying such things . Our import started to grow with difference from 2001 it was Shaukat Aziz model which provides 2 things ,one GDP to debt reduction and stimulus growth ,

However this exponential growth has lead to serious dis balance of infrastructure vs demand IPP is one example .To added insult to injury we were fighting WOT with no or little electricity .


You tube videos are your source then i will step back . Try to learn from acade

Kindly dont destroy the economics by saying such things . Our import started to grow with difference from 2001 it was Shaukat Aziz model which provides 2 things ,one GDP to debt reduction and stimulus growth ,

However this exponential growth has lead to serious dis balance of infrastructure vs demand IPP is one example .To added insult to injury we were fighting WOT with no or little electricity .


You tube videos are your source then i will step back . Try to learn from academic references and make your mind accordingly

I understand your viewpoint. But you are oversimplyfing things. Has this model resulted in GDP to debt ratio reduction in PPP or PLMN term afterwards? Its all about the balance. Has our external deficit situation this dire in his tenure. Solely relying on import expansion without taking into account and strangulating your own local and export industries is a formula for disaster, it only leads to one end.
2nd please take into consideration type of investment or financing taken and its contribution to your economy. Electricity was in no doubt the need of the hour, but it has meet certain merits and be sustainable to our local economy. Was the debt taken really beneficial in Quaid e Azam solar park or Lahore metro train, choosing imported coal instead of thar local?

 

[VCheng]

In election season, I was saying both on the forum and to friends and family that support PTI, that their manifesto and election promises are fantasies. On day one, they’ll be faced with a looming financing crisis, and they will be forced to do the opposite of what they promised. I told their supporters that IK will have no choice but to disappoint you on fiscal policy, borrowing etc. Instead of jobs, homes and employment, expect shrinking growth, austerity and inflation. I was met with blank expressions and confused looks. So this aspect is something IK is rightly paying the price for. Blindly made promises that are being broken.

At that time, I was severely castigated for saying the same things, only now to be proven right, just like you. Pakistan's financial situation is such that anybody who makes such tall claims will fail, no matter how well intentioned or politically savvy they might be, or whose support they may have, overtly or covertly.

Short of a default, there is no quick way out of this situation. Even with a default, the consequences will be quite significant.

 

[Path-Finder]

https://nation.com.pk/26-Dec-2017/government-got-record-40b-loans
Read this article and you will understand who is paying whose loans so we can safely say every one is paying every one pay backs

data I shared is for the MUST BE PAID BACK 28 billion! A 2017 article! pmln was still in powa.

Its not mortgaging its sukuk (A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia. Sukuk involves asset ownership while bonds are debt obligations) Do try to understand the difference between 2 .

what! sukuk with 450 million dollar interest? are you ok? then to put the cherry on the cake a billion in bills!

Lets see what SBP figures were in 2018 and now

http://www.sbp.org.pk/reports/stat_reviews/Bulletin/2018/Sep/InternalExternalPublicDebt.pdf
It was 86 Billion in June 2018 with debt to GDP of 72% where as it is currently 110 Billion US $ in 2020 June so do the maths If PTI is paying back loans why figure is going UP ?

?? what has this got to do with what is scheduled to be paid back?

https://tribune.com.pk/story/2140409/2-sbp-poured-24b-inter-bank-market-two-imf-programmes/?amp=1
Among the 24 Billion injected from 2008 onwards 7.5 Billion is done by PTI so in this case PTI is injecting more money by the way its normal SBP operations they collected back as well when needed to stablize

are you now just sharing any odd article. what has this got to do with miftah saying that they falsely kept the rupee floated?

I understand your viewpoint. But you are oversimplyfing things. Has this model resulted in GDP to debt ratio reduction in PPP or PLMN term afterwards? Its all about the balance. Has our external deficit situation this dire in his tenure. Solely relying on import expansion without taking into account and strangulating your own local and export industries is a formula for disaster, it only leads to one end.
2nd please take into consideration type of investment or financing taken and its contribution to your economy. Electricity was in no doubt the need of the hour, but it has meet certain merits and be sustainable to our local economy. Was the debt taken really beneficial in Quaid e Azam solar park or Lahore metro train, choosing imported coal instead of thar local?

another thing to add is that orange train! the LNG deal with qatar!

 

[Patriot forever]

Again you have no idea of economics ,we are Import driven country not dictated by PML N but from Musharaf Era(why we are import driven counrtry as we failed to create infrastructure critical for establishing industries like roads ,man power ,electricity) . Our whole CPI and worth of country is linked with Dollar by the way Dollar it self is backed by nothing other then crude ,Who dictates it is US as they also have lot of trade imbalance . Each country is sovereign to choose his currency and payment mode ,e.g your lovely neighbour India do deals in Irania Rayal ,Saudi Rayal ,Ruble and all intelligent countries do so

The difference is in those times we were never in such extreme situation. The fisical deficit was never this unsustainable we received coalition funds (I am not a supporter of musharraf and do not agree with his decisions). There was a balance imports were growing and were taking some of the brunt off. Our debt payments were low. PPP term this discrepancy further increased and during the plmn tenure it became unsustainable and we were deep in a debt trap.
Dollar is an international currency, I fully support that we should have bilateral currency agreements but we did not. We can negate some of the effects of out import bill by local currency arrangements. Our loans and imports have to be paid back in dollars. Our exports are in dollars. That's why artificially subsidizing dollar has such a huge impact on out local industry and economy.

I mean no offence to anyone.

 

[ali_raza]

Right Mr Smarty. Do you understand basic economics? Do you understand the role of a Central Bank? Explain why IMF is not allowing SBP to print money for its own government and its own people?

https://www.arabnews.pk/node/1636076/pakistan
Pakistan central bank will no longer finance government deficit

KARACHI: Pakistan will follow International Monetary Fund (IMF) recommendations and amend a law by which the central bank was printing money to cover government deficits, a top official said on Monday.

“This type of money printing was a cause of inflation in the country. The government is going to amend a relevant SBP act which will enhance the autonomy of the state bank and legally prevent this type of money printing,” State Bank of Pakistan governor Dr. Reza Baqir said during an English Speaking Union event in Karachi.

The central bank’s increased autonomy and stop to its monetization of government debts are in compliance with IMF recommendations under Pakistan’s $6 billion bailout program.

“This will be another institutional reform which will help control the structural inflation,” Baqir said, adding that the practice of deficit financing has not been in place during the current fiscal year and the central bank is “confident inflation will come down.”

governments in gcc doesn’t print money like pakistanis
u have that mfil in economy from london school of economics
tell me basic formula about printing money
is it good or bad for ur country

 

[Patriot forever]

https://nation.com.pk/26-Dec-2017/government-got-record-40b-loans
Read this article and you will understand who is paying whose loans so we can safely say every one is paying every one pay backs

Its not mortgaging its sukuk (A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia. Sukuk involves asset ownership while bonds are debt obligations) Do try to understand the difference between 2 .

Lets see what SBP figures were in 2018 and now

http://www.sbp.org.pk/reports/stat_reviews/Bulletin/2018/Sep/InternalExternalPublicDebt.pdf
It was 86 Billion in June 2018 with debt to GDP of 72% where as it is currently 110 Billion US $ in 2020 June so do the maths If PTI is paying back loans why figure is going UP ?


https://tribune.com.pk/story/2140409/2-sbp-poured-24b-inter-bank-market-two-imf-programmes/?amp=1
Among the 24 Billion injected from 2008 onwards 7.5 Billion is done by PTI so in this case PTI is injecting more money by the way its normal SBP operations they collected back as well when needed to stablize

Regarding your point that the debt to GDP ratio is going up. It is bound to grow, there is no way around it in the short term. It is indicative of the deep imbalances in our economy.
We have to take loan to balance our foreign deficit we are in negative. We are even taking loans to pay interest on our existing loans. Than to pay the principal amount as well. This is a domino effect. The CLASSIC DEBT TRAP. Our current exports and remittances are not able to sustain this load. To reach an equilibrium we need time and serious efforts in our export industry which takes time as it was in recession and reduction in imports which were growing exponentially. There is no short cut.

Can you suggest an alternate solution to our problem. I am all ears and welcome healthy criticism.

 

[Syed1.]

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.....

Sir if they had that much aqal or knowledge do you really think they would have been patwaris?


You have to be special type of a dumb *** to still support those who have brought us to this state.

Jug jug jeeyo @Jungibaaz @Xestan @volatile @Tameem @BATMAN @bafxet and other patwari members of PDF.

 

[SHAH BAAZ]

Regarding your point that the debt to GDP ratio is going up. It is bound to grow, there is no way around it in the short term. It is indicative of the deep imbalances in our economy.
We have to take loan to balance our foreign deficit we are in negative. We are even taking loans to pay interest on our existing loans. Than to pay the principal amount as well. This is a domino effect. The CLASSIC DEBT TRAP. Our current exports and remittances are not able to sustain this load. To reach an equilibrium we need time and serious efforts in our export industry which takes time as it was in recession and reduction in imports which were growing exponentially. There is no short cut.

Can you suggest an alternate solution to our problem. I am all ears and welcome healthy criticism.

Yes, Burn the corrupt satanic system to the ground.

Fight in the Cause of Allah.

Tell the World that Muslims dont play this worlds game as they do!!!!!!!!!

ISLAM BROTHER WE NEED ISLAM

 

[Path-Finder]

Regarding your point that the debt to GDP ratio is going up. It is bound to grow, there is no way around it in the short term. It is indicative of the deep imbalances in our economy.
We have to take loan to balance our foreign deficit we are in negative. We are even taking loans to pay interest on our existing loans. Than to pay the principal amount as well. This is a domino effect. The CLASSIC DEBT TRAP. Our current exports and remittances are not able to sustain this load. To reach an equilibrium we need time and serious efforts in our export industry which takes time as it was in recession and reduction in imports which were growing exponentially. There is no short cut.

Can you suggest an alternate solution to our problem. I am all ears and welcome healthy criticism.

You know your stuff!

 

[OldenWisdom...قول بزرگ]

There are so many dollars in the pipeline that if they don't make their way outside the U.S. ... there will be serious inflation in coming years... basically, if Pakistan wants dollars get them as investment and not as loans... they must be spent anyhow...