Pakistan Banao certificates

[VCheng]

Interesting. Is there any estimate as to the total wealth of Pakistanis (citizens and origin) abroad?

Leventeen hundreds billions of course. Plus all the billions of looted money that this government promised to bring back. May be these PBCs will be a wild success. May be.

 

[valkyr_96]

Hmmm..can you tell us what happened in 1998..
Mr sharif did defaulted Pakistan

That default led to lowest growth oeriod in Pakistan history from 1998-2001 projects lile ghazi brotha were stopped, higjways left in the dust in middle and exist of all companies

Than musharraf came renegotiated all the loans , wrote off Much with help of USA. Stabilized the country and reignited foreign investments

We saw more foreign investment in his era tha the two great democracy

All Paris clubs loans were renegotiated and USA wrote off all of its portion of loans in excess of 2b$

Pakistan has technically defaulted many times, but time has been kind to it. We have also leaned heavily on the goodwill of the IMF and presented many proposals of restructuring, but after taking the money we never carried out those reforms (even going so far to say that Pakistan has overcome its crisis and will not be going to IMF anymore).

There is a lack of understanding of a fundamental concept in finance, i.e. you only borrow in the currency your revenues are in. Thus every loan or FDI we get is pure shit unless it contributes to improving our exports -our foreign currency denominated revenue streams. So when a BRT setup is placed either in Sind, Punjab or KPK the money to pay for it does not come from the people who pay the tickets -it comes from the revenue generated from exports.

Pepsi investing in Pakistan is not a good news because it bring in no new money apart of from the investment itself but in fact takes away much more when the money is remitted back. On the other hand, Apple investments in China were good because FDI was paid in labour. This allows the FDI to permeate through the economy and is not transferred back to originator plus the profits.

Imran Khan should have gone ahead with the restructuring, explained it (despite the snide jabs) and then picked it up in the last year, presenting himself as the person who reduced debt and calmed inflation and will be leading the growth phase in the next chapter. If he proceeds with picking up the economy at a time when the rates are high to fight inflation, he will be doing a disservice. Inflation will not go down and we will achieve less work due to the higher borrowing costs. We have to understand that there are business cycles and we can't abuse the consumption function through dis-savings for long.

 

[RoadRunner401]

Hmmm..can you tell us what happened in 1998..
Mr sharif did defaulted Pakistan

That default led to lowest growth oeriod in Pakistan history from 1998-2001 projects lile ghazi brotha were stopped, higjways left in the dust in middle and exist of all companies

Than musharraf came renegotiated all the loans , wrote off Much with help of USA. Stabilized the country and reignited foreign investments

We saw more foreign investment in his era tha the two great democracy

All Paris clubs loans were renegotiated and USA wrote off all of its portion of loans in excess of 2b$

Not sure what you are talking about.

On May 28, 1998 “Pakistan put national pride ahead of economic prudence by testing its nukes" Nawaz Sharif administration conducted nuclear tests. The United States and Japan had warned Pakistan against the nuclear tests, and threatened the nation with sanctions. Foreseeing international reprisal Nawaz Sharif established the National Self-Reliance fund to receive donations from resident and non-resident Pakistanis, emphasizing in a statement made on June 2, 1998 that it is time to “live as a proud nation rather than live in fear.”

The international community condemned the nuclear tests and the “IMF, Asian Development Bank and Export-Import Bank of Japan stopped all aid to Islamabad.

the day after the nuclear tests – the State Bank of Pakistan (SBP) placed an indefinite freeze on foreign-exchange deposits, bank swaps and profit repatriation. This froze $13bn of resident and non-resident foreign currency deposits, which made up 1/3rd of total external debt.

In June, 1998 attempting to defend its currency, and to increase foreign exchange reserves, Pakistan allowed foreign currency holders to convert foreign deposits at the special rate of PKR 46/$1 as long as they acted before September 1, 1998. In addition to providing the special exchange rate, converted rupee deposits would benefit from full confidentiality and become exempt from wealth and income tax for a defined period of time.

On July 22, 1998 Pakistan introduced a “two-tier exchange rate mechanism comprising the official rate” of PKR 46/$1 “and the floating interbank rate” which was PKR 52/$1. At the same time Pakistan removed the SBP band that was previously fixed at PKR 46/$1 for spot buying and PKR 46/$1 for spot selling.

Averting Sovereign Default

Given the multi-billion dollar balance of payments gap (estimated to be $7.2bn in 98/99) and the dangerously low level of reserves (dropped to $541m in late-July), Pakistan was on the path to imminent sovereign default, all things held constant.Thankfully, things weren’t held constant and negotiations with the Paris and London clubs of creditors proved to be the nation’s saving grace. In August 1998, Pakistan was able to reschedule $4bn in debt payments – this stopped the rapid drain on foreign exchange reserves and marked the crisis’ turnaround.


Pakistan did not default on her debt, So, please for the love of GOD stop spreading false news

 

[ziaulislam]

Not sure what you are talking about.

On May 28, 1998 “Pakistan put national pride ahead of economic prudence by testing its nukes" Nawaz Sharif administration conducted nuclear tests. The United States and Japan had warned Pakistan against the nuclear tests, and threatened the nation with sanctions. Foreseeing international reprisal Nawaz Sharif established the National Self-Reliance fund to receive donations from resident and non-resident Pakistanis, emphasizing in a statement made on June 2, 1998 that it is time to “live as a proud nation rather than live in fear.”

The international community condemned the nuclear tests and the “IMF, Asian Development Bank and Export-Import Bank of Japan stopped all aid to Islamabad.

the day after the nuclear tests – the State Bank of Pakistan (SBP) placed an indefinite freeze on foreign-exchange deposits, bank swaps and profit repatriation. This froze $13bn of resident and non-resident foreign currency deposits, which made up 1/3rd of total external debt.

In June, 1998 attempting to defend its currency, and to increase foreign exchange reserves, Pakistan allowed foreign currency holders to convert foreign deposits at the special rate of PKR 46/$1 as long as they acted before September 1, 1998. In addition to providing the special exchange rate, converted rupee deposits would benefit from full confidentiality and become exempt from wealth and income tax for a defined period of time.

On July 22, 1998 Pakistan introduced a “two-tier exchange rate mechanism comprising the official rate” of PKR 46/$1 “and the floating interbank rate” which was PKR 52/$1. At the same time Pakistan removed the SBP band that was previously fixed at PKR 46/$1 for spot buying and PKR 46/$1 for spot selling.

Averting Sovereign Default

Given the multi-billion dollar balance of payments gap (estimated to be $7.2bn in 98/99) and the dangerously low level of reserves (dropped to $541m in late-July), Pakistan was on the path to imminent sovereign default, all things held constant.Thankfully, things weren’t held constant and negotiations with the Paris and London clubs of creditors proved to be the nation’s saving grace. In August 1998, Pakistan was able to reschedule $4bn in debt payments – this stopped the rapid drain on foreign exchange reserves and marked the crisis’ turnaround.


Pakistan did not default on her debt, So, please for the love of GOD stop spreading false news

But defaulted on local foreign currency accounts that were never paid back

Paris club loans were renegotiated for short term and log term renegotiation happen afterwards

So Pakistani were robbed but oaris club was paid back.

Pakistan was almost taken back to same place

Reality is that all IMF programs were simply due to artificial mismanagement by Pakistani politicians to appease the local population
Or to keep the dollar rupee parity

 

[ALi Rizwan]

What khan sb will do with that money???? Its same senseless borrowing. Money should be invest in high profit project. Instead it will be wasted in Govt. expense.

Even Local Business community asked Khan sb that instead of begging for Dam asked us for investment in it.
We are giving these high return project to foreigner that too with little equity. Why not our own people invest in it. Although long term investment but return will be for lifetime. Not to forget the benefit of cheap electricity and water for economy.

We have Successful example of Sialkot Airport and Now their Airline is also coming(A project of Sialkot Business Community).

 

[RoadRunner401]

What khan sb will do with that money???? Its same senseless borrowing. Money should be invest in high profit project. Instead it will be wasted in Govt. expense.

Even Local Business community asked Khan sb that instead of begging for Dam asked us for investment in it.
We are giving these high return project to foreigner that too with little equity. Why not our own people invest in it. Although long term investment but return will be for lifetime. Not to forget the benefit of cheap electricity and water for economy.

We have Successful example of Sialkot Airport and Now their Airline is also coming(A project of Sialkot Business Community).

Governments don't generate Money they distribute it

 

[ALi Rizwan]

Governments don't generate Money they distribute it

You need to control your expenses and address the issue. Senseless borrowing will lead us nowhere. And how will you pay them back? You need to address the issue.
Where on earth its Govt. job to take burden of massive losses just to maintain few jobs. If they can't run it just sell it.
DAMS not only its vital but it will generate money and will also improve export & agri production.
No motorway, no expensive IPP power, No METRO etc will save you except DAMS.

 

[valkyr_96]

Not sure what you are talking about.

On May 28, 1998 “Pakistan put national pride ahead of economic prudence by testing its nukes" Nawaz Sharif administration conducted nuclear tests. The United States and Japan had warned Pakistan against the nuclear tests, and threatened the nation with sanctions. Foreseeing international reprisal Nawaz Sharif established the National Self-Reliance fund to receive donations from resident and non-resident Pakistanis, emphasizing in a statement made on June 2, 1998 that it is time to “live as a proud nation rather than live in fear.”

The international community condemned the nuclear tests and the “IMF, Asian Development Bank and Export-Import Bank of Japan stopped all aid to Islamabad.

the day after the nuclear tests – the State Bank of Pakistan (SBP) placed an indefinite freeze on foreign-exchange deposits, bank swaps and profit repatriation. This froze $13bn of resident and non-resident foreign currency deposits, which made up 1/3rd of total external debt.

In June, 1998 attempting to defend its currency, and to increase foreign exchange reserves, Pakistan allowed foreign currency holders to convert foreign deposits at the special rate of PKR 46/$1 as long as they acted before September 1, 1998. In addition to providing the special exchange rate, converted rupee deposits would benefit from full confidentiality and become exempt from wealth and income tax for a defined period of time.

On July 22, 1998 Pakistan introduced a “two-tier exchange rate mechanism comprising the official rate” of PKR 46/$1 “and the floating interbank rate” which was PKR 52/$1. At the same time Pakistan removed the SBP band that was previously fixed at PKR 46/$1 for spot buying and PKR 46/$1 for spot selling.

Averting Sovereign Default

Given the multi-billion dollar balance of payments gap (estimated to be $7.2bn in 98/99) and the dangerously low level of reserves (dropped to $541m in late-July), Pakistan was on the path to imminent sovereign default, all things held constant.Thankfully, things weren’t held constant and negotiations with the Paris and London clubs of creditors proved to be the nation’s saving grace. In August 1998, Pakistan was able to reschedule $4bn in debt payments – this stopped the rapid drain on foreign exchange reserves and marked the crisis’ turnaround.


Pakistan did not default on her debt, So, please for the love of GOD stop spreading false news

It was a technical default. If it hadn't been the case, there would have been no restructuring of its sovereign loans. Why would the creditors re-negotiate the terms if Pakistan had no issues with its payment obligations? The reason why you can call it a default is because many countries did default only because their circumstances were not kind to them. There is a big industry around corporate and sovereign restructuring and a prime example is of vulture funds which feature prominent in Latin American crises. Defaulting on our loans would have at least cautioned us against the uncheck borrowings, but today we are using debt to hide structural issue such as the circular debt courtesy "Daronomics". The previous government conveniently tell us that we cannot count it as part of sovereign debt because it is supposedly off the balance sheet. If something is off the balance sheet you better expect it to be buried in paperwork under a random name in some tax haven rather that in your home and under your nose.

 

[El Sidd]

I did not buy it yet but i am saving up for it.

 

[Darth Vader]

Well it's more like helping your country then getting much out of it. We take loans from foreign countries with 3% or 2% or IMF loans and whatever. So instead they came up with idea why not ask money from overseas and give them the interest instead. 5% or 5.5% doesn't seem much but it's still something while helping your country, if you ave the money.

And these Same Helpers of Pakistan are looted by state when it comes to do anything with Pakistan.

 

[ps3linux]

I think it is the SIPC and not FDIC, and only if the brokerage firm is a member, but I am not sure, hence the question I asked.

These are "sovereign securities" FAQ Q19.

Thus risk rating should be AAA, however international rating agencies I guess would rate it in accordance with Pakistan's rating somewhere around BBB-.

See robbing Pakistani nationals residing in Pakistan is a hobby that scums of bureaucracy/politicians and of course the uniformed ones (not all but selected flag rank adventurist jerks) picked up decades ago, however when a paper is declared as a sovereign security and sold to citizen of other nations (despite being of Pakistani origin) the legal obligations/ramifications are mind boggling, no country in their right mind would default on a "sovereign paper"

I have seen comments here that why minimum investment of $5K and why not $100, standard bond price is $1000 (US standards) anything lower has serious cost considerations in terms of overhead costs, so an x5 denomination is not bad.

I have invested few grands in the bond and its pretty easy, besides not getting much returns on my fixed income portfolio unless I go for junk bonds, this one is much better than those crap, FDIC has jurisdiction in US only.

 

[El Sidd]

Jealous.

Whose laughing now?

 

[jupiter2007]

I will inshAllah do this.

This is like easiest way of earning Sadqa e Jariya. Jannat 5000 dollar me bikk rahi hai Pakistaniyon, khareed lo. OlX pe nahi bech dena

Let me know I have extra couple of billons.

 

[El Sidd]

Let me know I have extra couple of billons.

Spend it on a nice DJ Butt concert