Pakistan goes to beg IMF.

[474474]

What he is saying is correct. If you are not in favor of raising taxes then only option left is begging from someone.

Pakistanis seem to have forgotten this simple economic logic.

Please dont bring indian economics here, taxes are raised during a boom - when ecomonix activity is dead as in now you increase govt spending, lower taxes etc.

 

[SBD-3]

@Aeronaut do u have any better idea??when forex reserves are low and theres not much economic activity in the system with lot of debts theres nothing wrong in taking loans..india did the same back in 90 s when we faced the same problem and we managed good later on..taking loan is nothing bad but one must be careful to use it.and u must have a wise govt to do it.things get worse if even now ur govt donot wake up to correct the trade deficit.

Yes, he would ask government to increase education and health budget.

Please dont bring indian economics here, taxes are raised during a boom - when ecomonix activity is dead as in now you increase govt spending, lower taxes etc.

Then Pakistan would never be able to raise taxes. I love the way people perceive economics.

 

[neehar]

Yes, he would ask government to increase education and health budget.


Then Pakistan would never be able to raise taxes. I love the way people perceive economics.

how would it get you forex reserves??its all sweet and nice to say that we have to concentrate on social schemes.but to do that u need money.and most importantly if u donot have a watch on ur forex reserves that'll prove to be dangerous.u need dollars to buy everything outsideright from oil..u wudnt get them by spending more on education and health do u??

 

[SBD-3]

how would it get you forex reserves??its all sweet and nice to say that we have to concentrate on social schemes.but to do that u need money.and most importantly if u donot have a watch on ur forex reserves that'll prove to be dangerous.u need dollars to buy everything outsideright from oil..u wudnt get them by spending more on education and health do u??

Oh Gosh! How naieve you're.....You took it the otherway.

 

[neehar]

Oh Gosh! How naieve you're.....You took it the otherway.

what!! which part of my statement is naive??

 

[Bobby]

Pakistan hate IMF and USA but they go to beg for money to them.....and China ....all weather friend never give them single peny without making more benefit

 

[aamerjamal]

Pakistanis who voted for Nawaz forgot this principle. The Nawaz Govt is solely responsible for budget disasters.

are you serious about it............... ohh 11th may ki zalalat bholi nahi abhi .....

 

[livingdead]

Is there any other alternative. Like loan from saudi or china. You need money urgently which will help you tide over the current problem. Many countries take loan and replay once they fix their problems.
whats the big deal.
also, NS openly stated he is open to a deal with IMF.

 

[Cyberian]

Some of our Pakistani brothers have gone into emotional overdrive. Vast majority of the world has huge external debts. An example...

India's total budget for 2013-2014 (announced Thursday February 28, 2013): INRs. 16.65 trillion ($287.04 billion).

India's Total External Debt (March 2013): $376.3 billion.

 

[livingdead]

Some of our Pakistani brothers have gone into emotional overdrive. Vast majority of the world has huge external debts. An example...

India's total budget for 2013-2014 (announced Thursday February 28, 2013): INRs. 16.65 trillion ($287.04 billion).

India's Total External Debt (March 2013): $376.3 billion.

how much is same figures for pakistan..

 

[Cyberian]

how much is same figures for pakistan..

Pakistan's total budget for 2013-2014 (announced Wednesday June 12, 2013): PKRs. 3.99 trillion ($40.5 billion).

Pakistan's Total External Debt (March 2013): $60.87 billion.

 

[livingdead]

Pakistan's total budget for 2013-2014 (announced Wednesday June 12, 2013): PKRs. 3.99 trillion ($40.5 billion).

Total External Debt (March 2013): $60.87 billion[/ur].

not really bad then.

 

[Cyberian]

not really bad then.

Link updated for Pakistan's debt.

All developed countries have much much worse external debt number than India and Pakistan but its not a big issue for them. Reason being is that they control International Monetary Fund and the World Bank. They take as much money as they need, whenever they need it, no questions asked. But when developing countries require the same, its a totally different story and that's one of the reason why developing countries are always only developing, never fully developed.

 

[karan.1970]

Some of our Pakistani brothers have gone into emotional overdrive. Vast majority of the world has huge external debts. An example...

India's total budget for 2013-2014 (announced Thursday February 28, 2013): INRs. 16.65 trillion ($287.04 billion).

India's Total External Debt (March 2013): $376.3 billion.

Wrong comparison.. External debt needs to be evaluated against Forex/Gold reserves (liabilities against Assets)..

Pakistan's external debt is almost 5 times its forex reserves.. ($ 60 billion debt vs $ 11 billion forex reserves)
India on the other hand has this ratio well under control at 1.28 ($376 billion debt vs $292 billion forex reserves)

 

[Cyberian]

Wrong comparison.. External debt needs to be evaluated against Forex/Gold reserves (liabilities against Assets)..

Pakistan's external debt is almost 5 times its forex reserves.. ($ 60 billion debt vs $ 11 billion forex reserves)
India on the other hand has this ratio well under control at 1.28 ($376 billion debt vs $292 billion forex reserves)

I am aware of the Foreign Exchange Reserves in both countries. I was just giving an example of the external debt size.