Pakistan needs USD 17bn to cover rising current account deficit: WB

[Zen0]

Following the talks, the Bank said, "it would continue to support" Pakistan to implement broad economic reforms and address current risks towards achieving its development aspirations.
Pakistan needs around USD 17 billion to cover rising current account deficit and debt payments in the year 2018, the World Bankhas said reiterating that it would continue to support the country to implement its broad economic reforms.

"Pakistan is facing headwinds in the external sector and a risingfiscal deficit that could put macro-economic management at risk," the Bank said, after it concluded talks with a visiting Pakistani delegation on the sidelines of the annual meeting of International Monetary Fund and the World Bank.

"This has resulted in increased external financing needs of 5-6 per cent of GDP in financial year 2018, or around USD 17 billion, to cover rising current account deficit and debt payments," the bank said.

The Pakistan delegation included Shahid Mahmood, Secretary, Finance Division, Tariq Bajwa, Governor the State Bank of Pakistan, and Arif Ahmed Khan, Secretary of the Economic Affairs Division.

They met with a World Bank team led by Annette Dixon, Vice President, South Asia Region.

Following the talks, the Bank said, "it would continue to support" Pakistan to implement broad economic reforms and address current risks towards achieving its development aspirations.

https://economictimes.indiatimes.co...t-account-deficit-wb/articleshow/61110908.cms

 

[xyxmt]

At least they came down to 17 Billion from 31 billion few weeks ago, that is a development

 

[Signalian]

Nothing alarming here. Pakistan is still faring better than many other countries.

https://en.wikipedia.org/wiki/List_of_countries_by_current_account_balance_as_a_percentage_of_GDP

 

[Mrc]

These are minor issues... ups and downs

 

[BetterPakistan]

Why indians like @Zen0 are so worried about your current account deficit despite the fact that India current account deficit was 14.3 billion in the first quarter last year, it equals to 2.4% of Indian GDP btw.

A few days back WB was saying $31 bn is required to cover rising account deficit now they have came down to $17 bn

 

[NOWorNEVER]

Why indians like @Zen0 are so worried about your current account deficit despite the fact that India current account deficit was 14.3 billion in the first quarter last year, it equals to 2.4% of Indian GDP btw.

A few days back WB was saying $31 bn is required to cover rising account deficit now they have came down to $17 bn

Even the World Sole Super Power has it worst...
US current account deficit expands to $116.8 billion
https://www.cnbc.com/2017/06/20/us-current-account-deficit-expands-to-116-point-8-billion.html

Not worst than these....
http://www.insidermonkey.com/blog/t...-account-deficit-in-2017-600460/?singlepage=1

 

[VCheng]

Following the talks, the Bank said, "it would continue to support" Pakistan to implement broad economic reforms and address current risks towards achieving its development aspirations.
Pakistan needs around USD 17 billion to cover rising current account deficit and debt payments in the year 2018, the World Bankhas said reiterating that it would continue to support the country to implement its broad economic reforms.

"Pakistan is facing headwinds in the external sector and a risingfiscal deficit that could put macro-economic management at risk," the Bank said, after it concluded talks with a visiting Pakistani delegation on the sidelines of the annual meeting of International Monetary Fund and the World Bank.

"This has resulted in increased external financing needs of 5-6 per cent of GDP in financial year 2018, or around USD 17 billion, to cover rising current account deficit and debt payments," the bank said.

The Pakistan delegation included Shahid Mahmood, Secretary, Finance Division, Tariq Bajwa, Governor the State Bank of Pakistan, and Arif Ahmed Khan, Secretary of the Economic Affairs Division.

They met with a World Bank team led by Annette Dixon, Vice President, South Asia Region.

Following the talks, the Bank said, "it would continue to support" Pakistan to implement broad economic reforms and address current risks towards achieving its development aspirations.

https://economictimes.indiatimes.co...t-account-deficit-wb/articleshow/61110908.cms

The foreplay has begun in earnest.

 

[El Sidd]

hahaha i love how precise their math can be

Pakistan does not need any money it is too rich for anyone's liking.

 

[volatile]

I have said this before and will said this again the World bank is full of Indians and are working both ways or to malign Pakistan economically .
http://indiatoday.intoday.in/story/...old-key-positions-at-world-bank/1/301667.html
The Indian brigade
Highly qualified, talented Indians hold key positions and form the third largest ethnic group in the Bank. The question is whether India can utilise their skills.

Gauri Goyal in Washington,D.C.

February 15, 1993 | UPDATED 11:55 IST
A +A -


At the corner of the 19th and H Streets in Washington, D.C. is a sprawling 12-building complex. It's the headquarters of the International Bank for Reconstruction and Development. Or the World Bank. Or, as staffers refer to it, "the Bank". And these days one in every 14 is an Indian, a figure only less than the Americans who comprise a quarter of the Bank's 6,8 00-strong team, and only three less than the 466 Britons.

From President Lewis Preston's senior advisor to project consultants and support staff, Indians, in arguably the world's best known multilateral lender and economy tracker, are working in practically every aspect of the Bank's functions. The reach and numbers are much more than in similar agencies, such as the IMF and the Asian Development Bank. A change from 1965, when the first Indian and non-Westerner was hired at the Bank.

"It was a very strange feeling," says Vishwanathan Rajagopalan, the first Indian recruit, "But not any more." Rajagopalan, a former Health Ministry official who was sent "kicking and screaming to the Bank", stayed on. And is now Preston's special advisor on implementing the Wapenhans Report, an internal document that addresses problems in lending policies, project preparation and borrowing commitments.

Some critics say the number of Indians reflect their country's clout as the Bank's largest borrower conversely, the US and the UK's manpower clout is derived from the two countries being the largest lenders in the pool but it could go beyond that.

Fluent in English, armed with degrees from Ivy League universities, Oxbridge, the London School of Economics and sometimes with major policy-making experience in government jobs, the Indians are also perceived as empathetic to the problems of developing countries. The irony is that they haven't any direct influence on India Bank rules prevent Indians from holding key positions on India-related projects.


After the shut up call during recent meeting with World bank ,the institution has recognized their mistake


https://tribune.com.pk/story/1533183/world-bank-revises-downwards-pakistans-needs-17b/
ISLAMABAD:

After a fierce reaction from Pakistan, the World Bank on Monday admitted its mistake of projecting $31 billion in external financing needs for this fiscal year to cover the rising current account deficit and debt payments and lowered the estimate to $17 billion.


The lender issued a statement from Washington to rectify the mistake after holding meeting with a Pakistani delegation, led by Finance Secretary Shahid Mehmood.

“The bank management clarified to the delegation that media reports referring to the external financing needs of 9% of GDP (gross domestic product), or $31 billion, were an extrapolation of data published in the recent South Asia Economic Focus report,” said the statement.

Now the same WOrld bank

http://www.worldbank.org/en/news/pr...continue-to-support-pakistan-economic-reforms

World Bank to Continue to Support Pakistan Economic Reforms

Now my question is when DG ISPR issue statement on economics who was he helping ?

 

[protest]

Even the World Sole Super Power has it worst...
US current account deficit expands to $116.8 billion
https://www.cnbc.com/2017/06/20/us-current-account-deficit-expands-to-116-point-8-billion.html

Not worst than these....
http://www.insidermonkey.com/blog/t...-account-deficit-in-2017-600460/?singlepage=1

Are you kidding me. Its in their currency, they could simply print them if they like. You or any country cannot compare itself with US.

Why indians like @Zen0 are so worried about your current account deficit despite the fact that India current account deficit was 14.3 billion in the first quarter last year, it equals to 2.4% of Indian GDP btw.

A few days back WB was saying $31 bn is required to cover rising account deficit now they have came down to $17 bn

How is 14.3 billion, 2.4% of 2.4 trillion?

Nothing alarming here. Pakistan is still faring better than many other countries.

https://en.wikipedia.org/wiki/List_of_countries_by_current_account_balance_as_a_percentage_of_GDP

Its from 2014. At least make an effort.

 

[Jungibaaz]

PKR needs devaluing, it has needed it for years now. I can't believe it's not being done despite all the troubling news about the current account deficit and decreasing forex reserves.

 

[El Sidd]

PKR needs devaluing, it has needed it for years now. I can't believe it's not being done despite all the troubling news about the current account deficit and decreasing forex reserves.

I do not think that is the right approach.
PKR should not be devalued especially if everyone is crying sustained growth or actually predicting better in the coming years.

Devalued money will shatter the competition within and then it will be Puerto Rico all over again.

 

[Jungibaaz]

I do not think that is the right approach.
PKR should not be devalued especially if everyone is crying sustained growth or actually predicting better in the coming years.

Devalued money will shatter the competition within and then it will be Puerto Rico all over again.

There are downsides, I agree. But it's been overvalued for a long time now. Word is that SBP has been wanting some sort of depreciation for a while now.

I will add though, no changes in PKR will fix the underlying problems though, we need to improve the economy from within, strengthen industry and exports.

 

[El Sidd]

There are downsides, I agree. But it's been overvalued for a long time now. Word is that SBP has been wanting some sort of depreciation for a while now.

devaluing the money at this moment will simply shatter the minimal exports these corrupt mafia has left out.
without a uniform stable business sector specially production. devaluing the money will simply be a death sentence for business or lets say fruitful business in Pakistan.

it can work both ways but without infrastructure it is a risk not worth taking.

 

[VCheng]

PKR needs devaluing, it has needed it for years now. I can't believe it's not being done despite all the troubling news about the current account deficit and decreasing forex reserves.

Devaluation is inevitable. The first will be a jolt at around 10 percent or so, followed by another 10 percent or so managed sink over another year or two. The longer it is delayed, the more painful it will be.