Pakistan central bank will no longer finance government deficit

[fitpOsitive]

Imran Khan cannot play cricket
Imran Khan cannot win the world cup
Imran Khan cannot make free cancer hospital
Imran Khan cannot do politics
Imran Khan cannot become PM
Imran Khan cannot fix Pakistan
Non-stop hate and bughaz for Imran Khan goes on and yet he keeps winning, defying all haters and bughaz filled people like you.


Of course you are not sure since your favorite donkey leader Nawaz Sharif nearly bankrupted the country twice.

You are blinded by his love. I am not. I am not saying that he can't do because he is incapable. He can't do because people are not helping him. And he not working to make people work.

 

[Norwegian]

You are blinded by his love. I am not. I am not saying that he can't do because he is incapable. He can't do because people are not helping him. And he not working to make people work.

He is trying his best. If he fails then it is not his fault

1. what will you do when SBP wont finance( aka print money ) govt debt ?

2. how will the armed forces get paid ? the civil servants ? the pensioners ?

Through collecting taxes alone. Money printing won't be financing govt debt as it causes inflation

 

[fitpOsitive]

He is trying his best. If he fails then it is not his fault


Through collecting taxes alone. Money printing won't be financing govt debt as it causes inflation

See? That's the problem. He passes, we pass, he fails, we are done. Why? Why people don't think that they are responsible too? That was my point.
Kia karyga Imran akyla, that's exactly what I wanted to say.

 

[Norwegian]

See? That's the problem. He passes, we pass, he fails, we are done. Why? Why people don't think that they are responsible too? That was my point.
Kia karyga Imran akyla, that's exactly what I wanted to say.

Who said governing the ungovernable country would be easy? Especially when everybody here is an "expert" on everything

 

[fitpOsitive]

Who said governing the ungovernable country would be easy? Especially when everybody here is an "expert" on everything

That was pretty harsh. People of Pakistan are good ones, if not best.
Guidance and sense of partnership is all they need.

 

[CriticalThought]

Let us review some fundamentals here. It is true that Pakistan is facing a huge increase in the money supply. But it is also true that most people in Pakistan don't have a lot of money to spend. Pakistan is a poor country, comprising poor people. The huge money surplus is unevenly distributed into a small number of hands. This the microeconomic problem facing Pakistan.

On the macro level, Pakistan is faced with increasing amounts of short term debt that is payable in US Dollars. This means we are faced with a severe exchage rate risk, combined with a large part of government revenue being used to pay off debts. In order to truly solve this problem, the government needs to:

1. Improve the exchange rate favorably by increasing exports and decreasing imports.
2. Increase revenue through taxation and duties.

Both these points are achieved when you have a vibrant economy where businesses are thriving, job opportunities are abundant, and people are engaging in trade and commerce. And this is where micro and macro economics are linked together. The betterment of the people is linked intrinsically with betterment of the country.

The cookie-cutter solution peddled by IMF to every financially backward nation is to improve macro-economic measures at the cost of micro-economic betterment. In the IMF prescription, taxes are increased without improving net economic output. Money is systematically siphoned out from projects that could revive the economy, and is used to pay back IMF loans. This creates a spiral effect leading towards ultimate financial disaster.

The IMF prescription is hypocritical and two-faced, because the nations at the helm of IMF affairs practice the complete opposite when it comes to managing financial crises at home. I invite the reader to ponder on the Quantitative Easing programs executed by the US Federal Reserve. Hundreds of billions of dollars were artificially dumped into the economy to kick start it and to avoid economic collapse.

The printing of money is analogous to the Quantitative Easing regimen by the US Fed. By taking away this tool, the IMF is only expediting Pakistan's spiral into ultimate financial disaster. The net result will be a government that has to increasingly cut money out of projects and services. As pointed out by @fitpOsitive, this will be salaries of civil servants, military etc. Depending on the munificence (or lack thereof) of IMF, cuts could be seen in the Ehsaas program, grants to educational institutions, and government subsidies to name a few.

The people lavishing praise upon Imran Khan, and calling this IMF prescription beneficial for Pakistan, are traitors just like the traitor Khan himself. It is amazing how millions of uneducated people are being practically ridiculed by savages who are glorifying economic genocide, yet the millions remain unaware of what is happening to them.

 

[fitpOsitive]

Let us review some fundamentals here. It is true that Pakistan is facing a huge increase in the money supply. But it is also true that most people in Pakistan don't have a lot of money to spend. Pakistan is a poor country, comprising poor people. The huge money surplus is unevenly distributed into a small number of hands. This the microeconomic problem facing Pakistan.

On the macro level, Pakistan is faced with increasing amounts of short term debt that is payable in US Dollars. This means we are faced with a severe exchage rate risk, combined with a large part of government revenue being used to pay off debts. In order to truly solve this problem, the government needs to:

1. Improve the exchange rate favorably by increasing exports and decreasing imports.
2. Increase revenue through taxation and duties.

Both these points are achieved when you have a vibrant economy where businesses are thriving, job opportunities are abundant, and people are engaging in trade and commerce. And this is where micro and macro economics are linked together. The betterment of the people is linked intrinsically with betterment of the country.

The cookie-cutter solution peddled by IMF to every financially backward nation is to improve macro-economic measures at the cost of micro-economic betterment. In the IMF prescription, taxes are increased without improving net economic output. Money is systematically siphoned out from projects that could revive the economy, and is used to pay back IMF loans. This creates a spiral effect leading towards ultimate financial disaster.

The IMF prescription is hypocritical and two-faced, because the nations at the helm of IMF affairs practice the complete opposite when it comes to managing financial crises at home. I invite the reader to ponder on the Quantitative Easing programs executed by the US Federal Reserve. Hundreds of billions of dollars were artificially dumped into the economy to kick start it and to avoid economic collapse.

The printing of money is analogous to the Quantitative Easing regimen by the US Fed. By taking away this tool, the IMF is only expediting Pakistan's spiral into ultimate financial disaster. The net result will be a government that has to increasingly cut money out of projects and services. As pointed out by @fitpOsitive, this will be salaries of civil servants, military etc. Depending on the munificence (or lack thereof) of IMF, cuts could be seen in the Ehsaas program, grants to educational institutions, and government subsidies to name a few.

The people lavishing praise upon Imran Khan, and calling this IMF prescription beneficial for Pakistan, are traitors just like the traitor Khan himself. It is amazing how millions of uneducated people are being practically ridiculed by savages who are glorifying economic genocide, yet the millions remain unaware of what is happening to them.

Imran is not traitor, and some of buddies sure are.

 

[Norwegian]

Both these points are achieved when you have a vibrant economy where businesses are thriving, job opportunities are abundant, and people are engaging in trade and commerce. And this is where micro and macro economics are linked together. The betterment of the people is linked intrinsically with betterment of the country.

This is achieved through export led growth not import led as it was going on in past regimes

The cookie-cutter solution peddled by IMF to every financially backward nation is to improve macro-economic measures at the cost of micro-economic betterment. In the IMF prescription, taxes are increased without improving net economic output. Money is systematically siphoned out from projects that could revive the economy, and is used to pay back IMF loans. This creates a spiral effect leading towards ultimate financial disaster.

Again this is Patwari propaganda. IMF's mandate is to help the country so it doesn't go into default. What previous regimes were doing was providing microeconomic prosperity at the cost of macroeconomic instability.

The IMF prescription is hypocritical and two-faced, because the nations at the helm of IMF affairs practice the complete opposite when it comes to managing financial crises at home. I invite the reader to ponder on the Quantitative Easing programs executed by the US Federal Reserve. Hundreds of billions of dollars were artificially dumped into the economy to kick start it and to avoid economic collapse.

US dollar is the world's reserve currency. All their money printing caused inflation is exported to rest of the world. Pakistani RS or other countries doesn't have that luxury

The people lavishing praise upon Imran Khan, and calling this IMF prescription beneficial for Pakistan, are traitors just like the traitor Khan himself. It is amazing how millions of uneducated people are being practically ridiculed by savages who are glorifying economic genocide, yet the millions remain unaware of what is happening to them.

Patwari, money printing could never solve Pakistan's economic or financial problems. Only export led growth and increased productivity can.

Imran is not traitor, and some of buddies sure are.

It is amazing how a person who has served his country all his life from cricketing days is now branded traitor after becoming PM. Bughaz Imran surely has no limits.

 

[fitpOsitive]

This is achieved through export led growth not import led as it was going on in past regimes


Again this is Patwari propaganda. IMF's mandate is to help the country so it doesn't go into default. What previous regimes were doing was providing microeconomic prosperity at the cost of macroeconomic instability.


US dollar is the world's reserve currency. All their money printing caused inflation is exported to rest of the world. Pakistani RS or other countries doesn't have that luxury


Patwari, money printing could never solve Pakistan's economic or financial problems. Only export led growth and increased productivity can.


It is amazing how a person who has served his country all his life from cricketing days is now branded traitor after becoming PM. Bughaz Imran surely has no limits.

Meri taraf se sab Cholhay main jain, Pakistan k log khush nai hain tu kch Acha nai hai.

 

[Nilgiri]

It is already implemented since last few months. There are lot of structural changes are happening at the top. But these structural changes will take time to deliver something on ground and that is the core reason of restlessness in masses.

Ah ok good to hear. Do you have an earlier news trail of this? I believe this is a final legal sided action to make things more official rather than intent-driven?

 

[CriticalThought]

This is achieved through export led growth not import led as it was going on in past regimes

And what are the necessary ingredients for export led growth?

Again this is Patwari propaganda. IMF's mandate is to help the country so it doesn't go into default. What previous regimes were doing was providing microeconomic prosperity at the cost of macroeconomic instability.

IMF is a tool to tie backward nations in the binds of economic slavery. I have reached this consensus in discussions with many people, amongst them an ex-Australian diplomat, and people working in FINTECH. Anyone who portrays IMF as a benevolent entity only insults his own intelligence.

What previous regimes were committing was treason. Why is your perspective limited to the dichotomy of pre-Imran era and Imran era. And no matter how much you deny, there will definitely be a post-Imran era.

US dollar is the world's reserve currency. All their money printing caused inflation is exported to rest of the world. Pakistani RS or other countries doesn't have that luxury

Quantitative easing is a well established tool of monetary policy that is available to any nation that chooses to employ it. It was employed by the European central bank:

https://www.economist.com/the-economist-explains/2015/03/09/what-is-quantitative-easing

TODAY the European Central Bank (ECB) launches its long-awaited programme of quantitative easing (or QE), adding lots of public debt to the private kind it has already been buying. Its monthly purchases will rise from around €13 billion ($14 billion) to €60 billion until at least September 2016. The ECB is just the latest central bank to jump on board the QE bandwagon. Most rich-economy central bankers began printing money to buy assets during the Great Recession, and a few, like the Bank of Japan, are still at it. But what exactly is quantitative easing, and how is it supposed to work?

and may still be employed by Australia:

https://www.abc.net.au/news/2019-12-07/quantitative-easing-explained-simply/11775606

Patwari, money printing could never solve Pakistan's economic or financial problems. Only export led growth and increased productivity can.

Mind your tongue. I have absolutely no political leanings. Money printing in the hands of greedy thugs becomes a weapon of mass corruption, just like a nuclear armed country in the hands of a poofter like Imran Khan becomes a joke in the world. Printing of money is a tool that can and should be used judiciously as and when needed. The problem isn't with the legislation that curbs government interference, the problem is that the head of the central bank is an IMF agent.

It is amazing how a person who has served his country all his life from cricketing days is now branded traitor after becoming PM. Bughaz Imran surely has no limits.

Yes, playing cricket has created export led growth and increased productivity in Pakistan. Bravo!

What I am saying is that he is pushing the country into financial slavery of IMF, and he is doing this NOW. Forget that cricket led export growth of the past.

 

[The Accountant]

And what are the necessary ingredients for export led growth?



IMF is a tool to tie backward nations in the binds of economic slavery. I have reached this consensus in discussions with many people, amongst them an ex-Australian diplomat, and people working in FINTECH. Anyone who portrays IMF as a benevolent entity only insults his own intelligence.

What previous regimes were committing was treason. Why is your perspective limited to the dichotomy of pre-Imran era and Imran era. And no matter how much you deny, there will definitely be a post-Imran era.



Quantitative easing is a well established tool of monetary policy that is available to any nation that chooses to employ it. It was employed by the European central bank:

https://www.economist.com/the-economist-explains/2015/03/09/what-is-quantitative-easing


and may still be employed by Australia:

https://www.abc.net.au/news/2019-12-07/quantitative-easing-explained-simply/11775606



Mind your tongue. I have absolutely no political leanings. Money printing in the hands of greedy thugs becomes a weapon of mass corruption, just like a nuclear armed country in the hands of a poofter like Imran Khan becomes a joke in the world. Printing of money is a tool that can and should be used judiciously as and when needed. The problem isn't with the legislation that curbs government interference, the problem is that the head of the central bank is an IMF agent.



Yes, playing cricket has created export led growth and increased productivity in Pakistan. Bravo!

What I am saying is that he is pushing the country into financial slavery of IMF, and he is doing this NOW. Forget that cricket led export growth of the past.

Brother with due respect i strongly disagree with your idea of money printing and monetary easing.

At the time when we are having isssue of excess demand in comparision to our production monetaty easing is disasterous. Your are only going to end up importing and further pressure on current account.

Europe using monetary easing was at the time of excess production capacities with less demand but we have the exactly opposite situation.

 

[CriticalThought]

Brother with due respect i strongly disagree with your idea of money printing and monetary easing.

At the time when we are having isssue of excess demand in comparision to our production monetaty easing is disasterous. Your are only going to end up importing and further pressure on current account.

Europe using monetary easing was at the time of excess production capacities with less demand but we have the exactly opposite situation.

You didn't even bother to read the articles. And what you have stated is incorrect. Quantitative easing was used to bolster a slowing economy. A slowing economy means lack of jobs because businesses are slowing down and wrapping up operations. This is exactly the scenario where you need low interest rates.

 

[The Accountant]

You didn't even bother to read the articles. And what you have stated is incorrect. Quantitative easing was used to bolster a slowing economy. A slowing economy means lack of jobs because businesses are slowing down and wrapping up operations. This is exactly the scenario where you need low interest rates.

No sir, you are scratching the surface only ... Slowing down of economy is just the symptom, why it is happening is the real issue.

Again this slow down of economy was induced by government to reduce the aggregate demand. Our demand was high but production capacity was very low. Ok for the sake of argument if we start quantitative easing then people have excess cash, what product are they going to buy ? Pakistani manufactured products or imported Chinese products?

The government is working on a strategy which is tough for short and medium term but suerly is going to benefit in long run. Our textile and cement sectors are already closed to full capacity. With the increased in dollar rates imports are expensive therefore local substitutes are now appearing in the market. Sooner or later inflation will be down and these local products will establish local distribution chains which will benefit the economy.

 

[Norwegian]

And what are the necessary ingredients for export led growth?

Expulsion of PMLN, PPP led mafia from power corridors

IMF is a tool to tie backward nations in the binds of economic slavery. I have reached this consensus in discussions with many people, amongst them an ex-Australian diplomat, and people working in FINTECH. Anyone who portrays IMF as a benevolent entity only insults his own intelligence.

So don't run away to IMF with a begging bowl after nearly bankrupting the country 21 times

What previous regimes were committing was treason. Why is your perspective limited to the dichotomy of pre-Imran era and Imran era. And no matter how much you deny, there will definitely be a post-Imran era.

There won't be. PMLN, PPP mafias are never coming back to power.

and may still be employed by Australia:

Quantitative easing is a well established tool of monetary policy that is available to any nation that chooses to employ it. It was employed by the European central bank:

Hahaha. US, Europe, Australia are developed countries. Their monetary easing doesn't affect their financial situation unlike Pakistan.

Mind your tongue. I have absolutely no political leanings. Money printing in the hands of greedy thugs becomes a weapon of mass corruption, just like a nuclear armed country in the hands of a poofter like Imran Khan becomes a joke in the world. Printing of money is a tool that can and should be used judiciously as and when needed. The problem isn't with the legislation that curbs government interference, the problem is that the head of the central bank is an IMF agent.

You are such an idiot if you think excessive money printing, monetizing govt debt won't cause hyper inflation in Pakistan.

Yes, playing cricket has created export led growth and increased productivity in Pakistan. Bravo!

What I am saying is that he is pushing the country into financial slavery of IMF, and he is doing this NOW. Forget that cricket led export growth of the past.

Bravo, import led growth by previous regimes nearly bankrupted Pakistan.
IMF is the last resort when country is nearly bankrupted through import led growth and quantitative easing model.

You didn't even bother to read the articles. And what you have stated is incorrect. Quantitative easing was used to bolster a slowing economy. A slowing economy means lack of jobs because businesses are slowing down and wrapping up operations. This is exactly the scenario where you need low interest rates.

Developed countries have a demand side problem not supply side problem. You being a fool cannot understand that for Pakistan the problem is opposite, so your Western solution won't work here.