Pakistan economy is on the verge of collapse: Financial Times

[SpaceForceNY]

I hope at least now Pakistan will take some hard actions. Actions including not letting the Army interfere in the politics of the country, getting the army out of various businesses and bringing back all the money held overseas by these Generals. The only reason Bangladesh and India have managed to progress is because they did not let their Army control their country.

Pakistan economy is on the verge of collapse: Financial Times
Analysts warn that Pakistan’s economic situation is at risk of following Sri Lanka, says FT report

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News DeskJanuary 26, 2023

Photo: File

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Pakistan’s economy in on the verge of collapse as thousands of containers are stuck up at the seaports due to the severe shortage of dollars, a report published in the Financial Times warned on Thursday.
Analysts warn that Pakistan’s economic situation is becoming untenable and is at risk of following Sri Lanka, where a lack of foreign reserves triggered severe shortages of essential goods and eventually led to a default in May, the British daily said.
The report quoted officials as saying that factories such as textile manufacturers were closing or cutting hours to conserve energy and resources.
The difficulties were compounded by a nationwide blackout on Monday that lasted more than 12 hours. “Already a lot of industries have closed down, and if those industries don’t restart soon, some of the losses will be permanent,” Sakib Sherani, founder of Macro Economic Insights in Islamabad, told FT.
Also read: Pakistan fast heading into economic meltdown
Foreign reserves held by the central bank have dropped to under $5 billion, less than a full month of imports with the federal government remains in a deadlock with the IMF over reviving a $7 billion bailout package that stalled last year.
“Every day matters now. It’s simply not clear what the way out is,” FT qouted Abid Hasan, a former adviser to the World Bank, as saying. “Even if they get a billion [dollars] or two to roll over . . . things are so bad that it’s going to be just a Band-Aid at best.”
Planning Minister Ahsan Iqbal told the Financial Times that the country had “drastically” reduced imports in an attempt to conserve foreign currency.
Analysts said this included restricting banks from opening letters of credit for importers, leading a steel industry body this week to threaten halting production.
The IMF and the PM Shehbaz Sharif-led government are at loggerheads over the former’s demand that Pakistan accepts economic reforms such as raising subsidised energy prices.
“If we just comply with the IMF conditionalities, as they want, there will be riots in the streets,” Iqbal told FT. “We need a staggered programme . . . The economy and society cannot absorb the shock or cost of a front-loaded programme.”

 

[Arsalan345]

Your views are supported by Indians, how much evidence do you have to support your views? What are your suggestions for the future development of Pakistan?

Ask Srilanka. they will provide you with evidence.

 

[epebble]

Demurrage by port has been waived but not by shipping companies. And most importantly their containers have been stuck which is why they are considering to at least reduce services to pk.

Hard goods can be salvaged but what to do with tomatoes, onions and ginger? After 4 weeks, the containers need to be sanitized.

 

[doorstar]

Your views are supported by Indians, how much evidence do you have to support your views? What are your suggestions for the future development of Pakistan?

he is a Pakistani from FATA or an afgoon refugee who sought and went to every indian forum to sympathize, condole and apologize for Pakistan kicking in indian teeth in the aftermath of balakote shararat.

be careful the PDF bosses must love him or else why would they allow him multiple accounts? one mod account that did not tolerate such behavior has become inactive and has not posted here since apr 2022 and was last seen here on Nov 5, 2022

 

[truthseeker2010]

Hard goods can be salvaged but what to do with tomatoes, onions and ginger? After 4 weeks, the containers need to be sanitized.

I won't be surprised if they will make to public once they are paid for. Bcoz having something would be better than not having it at all in times ahead.

 

[Mirzali Khan]

Talking of which, I have been surprised by the extreme strangeness of behavior of the finance minister Dar. The country is on the verge of economic collapse, and he posts a verse on his twitter. I have been visiting his Twitter for a few months and NOT ONCE has there been any policy, position paper, discussion, white paper. Nothing. But plenty of prayer requests and beseeching the divinity to intercede. We would be shocked if we had a financial crisis and our Fed Chairman or Treasury Secretary resorted to posting prayer requests for divine intervention. I don't see this issue mentioned at all. This obviously shows he is genuinely clueless and has lost his marbles.

Bro this is what he posted an hour ago LMAOOO

https://twitter.com/x/status/1619042777945481216

 

[zn426]

This is why Pakistan was created by the Brits. A buffer for illiterate masses and corrupt elites. Pakistan is functioning as intended.

There is no way out for Pakistan. It will always be controlled by the military. The military will always be controlled by outsiders.

Pakistan wasn't created by the Brits. It is pitiable, the circumstances Pakistan has found itself in-but Jinnah and his compatriots created Pakistan for the sake of religious freedom.

No disagreement that the years of military rule have ruined Pakistan.

 

[tman786]

Many warned them about the dangers of default but they didn't listen to anyone. Still, they think that CPEC is a game changer. Communist China wanted a bankrupt Pakistan. Now they will buy lands in a cut-price deal. These communists have already bankrupted Srilanka but these fools wanted money and their greed put us in a civil war-like situation.

Are you an American agent? Or just a fool?

I love how you completely ignore the curse of corrupt politicians, corrupt judiciary, lafafia media, dynastic parties, corrupt establishment and of course, American interference in our domestic affairs.

Both Pakistan and Sri Lanka have been ruled by dynastic corrupt parties and their economic policies have been self destructive. Chinese investments have not caused the bankruptcy, but it has been caused by corruption and poor governance.

Chinese are investing billions in Africa and South America. No nation there is on the floor like Pakistan.

 

[epebble]

Bro this is what he posted an hour ago LMAOOO

https://twitter.com/x/status/1619042777945481216

This has not been discussed much. There was a thread on separation of Religion and State and these posts by Dar are a fine example of why a separation between faith and state is essential for good governance. This finance minister Dar, who is responsible for the financial well being of 224 million people turns out to be so devoted to his faith that he sincerely believes God will take care of the nation when push comes to shove. He somehow fails to see that did not happen in Syria, Lebanon, Afghanistan, Yemen, Somalia, Sudan, Ethiopia, Egypt etc., Are they all children of lesser God? But because of the culture of Pakistan, nobody thought this is weird. Instead of calling talented economists for advice, he kept to himself and prayed furiously for the problem to go away. Now we see the Titanic has hit the iceberg inspite of his devotion.

 

[doorstar]

Hard goods can be salvaged but what to do with tomatoes, onions and ginger? After 4 weeks, the containers need to be sanitized.

effing hell! ginger and tomatoes need to be imported? sheesh is there no coolish climate in Pakistan for growing tomatoes or hottish one for ginger?

even I in my small greenhouses, can grow a year's supply of tomatoes for 12 people and more to give away/throw away. I grow ginger indoors all year around in the UK. never bought either (nor many other fruits/veges) for past decade or so.

and the bloody onions are like a plague thus will grow anyplace sometimes all by themselves (if left to seed/run/walk).
how lazy and dependent are these people?

 

[HAIDER]

I hope at least now Pakistan will take some hard actions. Actions including not letting the Army interfere in the politics of the country, getting the army out of various businesses and bringing back all the money held overseas by these Generals. The only reason Bangladesh and India have managed to progress is because they did not let their Army control their country.

Our biggest curse is elite capture and business and agriculture feudal lords not willing to pay tax. These rich ruling class lives in Western countries and protect their cronies and impose VAT .value added tax commodities consume by poor public... Wish IMF should get hard on these corrupt leaders. But IMF should keep an eye these rich class don t pass all these debt on poor people of Pakistan.

For example: Today our PM went for inauguration of train service ...imagine a train service ...venue was only 10 km/6 miles may be away from PM house. He should down all the traffic in his path and use helicopter to cover 10 miles. Imagine, he is traveling in helicopter and shut down the traffic from PM house to venue.....went there and gave a lecture/speech on austerity.
Plus, his helicopter took 4 trips from PM to venue for " practice landing".

 

[epebble]

effing hell! ginger and tomatoes need to be imported? sheesh is there no coolish climate in Pakistan for growing tomatoes or hottish one for ginger?

even I in my small greenhouses, can grow a year's supply of tomatoes for 12 people and more to give away/through away. I grow ginger indoors all year around in the UK. never bought either (nor any other fruits/veges) for past decade or so.

and the bloody onionsare like a plague thus will grow anyplace sometimes all by themselves (if left to seed/run/walk).
how lazy and dependant are these people?

But feeding 224 million is a different ballgame. Also, they had major floods last year that wiped away lot of crops and rendered huge acreage uncultivable due to water/debris logging.

Onion, ginger, and garlic worth $5.5 million stuck at Karachi port

KARACHI: All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association has sought the Ministry of Commerce to clear cargoes of onion, garlic and ginger worth around $5.5 million...

www.thenews.com.pk

 

[doorstar]

Bro this is what he posted an hour ago LMAOOO

https://twitter.com/x/status/1619042777945481216

it's not unique to Pakistan only, it is sub-continental disease. this one is trying to outdo the paghambroon jaisa haq parast Imam Khan.

do you remember when bharatis presented modi as a hindu holy man/godman/avtar of the gods? that hindu parsi catholic crossbreed did exact same by portraying himself as more hindu than any BJP RSS gods

 

[epebble]

This has not been discussed much. There was a thread on separation of Religion and State and these posts by Dar are a fine example of why a separation between faith and state is essential for good governance. This finance minister Dar, who is responsible for the financial well being of 224 million people turns out to be so devoted to his faith that he sincerely believes God will take care of the nation when push comes to shove. He somehow fails to see that did not happen in Syria, Lebanon, Afghanistan, Yemen, Somalia, Sudan, Ethiopia, Egypt etc., Are they all children of lesser God? But because of the culture of Pakistan, nobody thought this is weird. Instead of calling talented economists for advice, he kept to himself and prayed furiously for the problem to go away. Now we see the Titanic has hit the iceberg inspite of his devotion.

Finance czar banks on Allah for Pakistan's prosperity​

Finance czar banks on Allah for Pakistan's prosperity

Stressing that the government was doing all it could to salvage the country's economy, Finance Minister Ishaq Dar said on Friday that Pakistan is the only country founded in the name of Islam and...

www.thenews.com.pk

 

[Super Falcon]

Our leaders no seriousness even when our economy are collapsing they are still fighting shows how stupid leaders we have still Imran and pdm fighting for pm musical chair forgot this if there is no pak which chair they will be fighting for

This time every thing should be secondary and economy should be given priority this instability is fueling economy further