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

[Zen0]

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.

14billion is 2.4% in a 2.7trillions $ GDP? No wonder Pakistan has the lowest literacy rate in south asia .

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

Chinese pressure ,nothing more , wb reported the best estimates to kick of these Chinese projects , Pakistan renegotiated with their office data with a growth rate of 5.1%.

End of the day you'll still be piling on debt more then you can afford.

 

[313ghazi]

14billion is 2.4% in a 2.7trillions $ GDP? No wonder Pakistan has the lowest literacy rate in south asia .

You must have gone to one of those failed schools too. Or maybe you just failed Ingreeji claas.

http://www.thehindu.com/opinion/editorial/time-for-caution/article19704227.ece

http://www.financialexpress.com/eco...sharply-to-2-4-of-gdp-in-q1-10-points/856776/

http://www.livemint.com/Money/UL0we...eficit-widens-to-24-of-GDP-in-Q1-shows-R.html

https://tradingeconomics.com/india/current-account

The figure quoted is clearly from within a timeframe.

 

[Zen0]

You must have gone to one of those failed schools too. Or maybe you just failed Ingreeji claas.




http://www.thehindu.com/opinion/editorial/time-for-caution/article19704227.ece

http://www.financialexpress.com/eco...sharply-to-2-4-of-gdp-in-q1-10-points/856776/

http://www.livemint.com/Money/UL0we...eficit-widens-to-24-of-GDP-in-Q1-shows-R.html

https://tradingeconomics.com/india/current-account

The figure quoted is clearly from within a timeframe.

This is basic math kid , 1% of a trillion is 10billion , 2% is 20 billion. 2.7% is ~27billion


The stats are at th he current GDP . If I had earned 100rs per week then I borrowed 20rs only on that week. But my monthly pay is still 400rs/m . Get it?

 

[313ghazi]

This is basic math kid , 1% of a trillion is 10billion , 2% is 20 billion. 2.7% is ~27billion


The stats are at th he current GDP . If I had earned 100rs per week then I borrowed 20rs only on that week. But my monthly pay is still 400rs/m . Get it?

The figures quoted are for a quater. What part of that don't you get?

India’s current account deficit increased sharply to 2.4% of GDP in first quarter, from 0.1 percent a year ago, the Reserve Bank of India (RBI) said on Friday.

Are you going to teach the Reserve Bank of India basic maths too?

 

[Zen0]

The figures quoted are for a quater. What part of that don't you get?

You said 14 billion is equal 2.4% of Indian GDP that's a re&arded claim . It was equal to 2.4% of GDP in the first quarter.

Are you going to teach the Reserve Bank of India basic maths too?

No I'm teaching you to use common sense , they didn't make the ridiculous claim you did.in no universe is 14billion 2% of 2.7 trillion

 

[313ghazi]

You said 14 billion is equal 2.4% of Indian GDP that's a re&arded claim . It was equal to 2.4% of GDP in the first quarter.


No I'm teaching you to use common sense , they didn't make the ridiculous claim you did.in no universe is 14billion 2% of 2.7 trillion

Wow you are really really dense.

Read this quote:

India’s current account deficit increased sharply to 2.4% of GDP in first quarter, from 0.1 percent a year ago, the Reserve Bank of India (RBI) said on Friday.

It comes from this source; http://www.financialexpress.com/eco...sharply-to-2-4-of-gdp-in-q1-10-points/856776/

I don't know how to say this in Hindi, if you don't understand English, then I can't help you.

A quote, is a reference to the exact words someone said. The qoute from the newspaper I linked said "India’s current account deficit increased sharply to 2.4% of GDP in first quarter" it then goes on to say "the Reserve Bank of India (RBI) said on Friday".

The important part for your daal powered mind to realise is the bit that says "GDP in first quarter". A quater is 1 out of 4. In terms of the calendar that means 3 months, not a year.

If India's GDP is 2.7 trillion for the year.
So Quaterly it is 675 billion.
1% of that is 6.75 billion.
2.4% of that is 16.2 billion.

Now I assume that all the GDP is not earned in perfectly even quaters, so maybe the GDP earned this quater was a little less, so that 2.4% was 14 billion. It's not difficult.

 

[volatile]

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.

Be careful when you comment on devaluation ,Pakistan is Import driven economy and more devalue currency gets more inflation rises ,over night your loans appreciate , may i know the purpose of devaluation from your side ?

 

[Signalian]

Its from 2014. At least make an effort.

Cant help you if you cant get drift of something straight forward.

 

[AZADPAKISTAN2009]

17 ,000,000,000 (17 billion) is nothing

US is under 20 Trillion debt

20,000,000,000,000 (With 12 zeros)

 

[sparten]

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.

Because doing so will screw up the massively increasing domestic sector.

 

[Zen0]

Wow you are really really dense.

Read this quote:


It comes from this source; http://www.financialexpress.com/eco...sharply-to-2-4-of-gdp-in-q1-10-points/856776/

I don't know how to say this in Hindi, if you don't understand English, then I can't help you.

A quote, is a reference to the exact words someone said. The qoute from the newspaper I linked said "India’s current account deficit increased sharply to 2.4% of GDP in first quarter" it then goes on to say "the Reserve Bank of India (RBI) said on Friday".

The important part for your daal powered mind to realise is the bit that says "GDP in first quarter". A quater is 1 out of 4. In terms of the calendar that means 3 months, not a year.

If India's GDP is 2.7 trillion for the year.
So Quaterly it is 675 billion.
1% of that is 6.75 billion.
2.4% of that is 16.2 billion.

Now I assume that all the GDP is not earned in perfectly even quaters, so maybe the GDP earned this quater was a little less, so that 2.4% was 14 billion. It's not difficult.

You should go to 1st grade and educate yourself in basic English.


"India’s current account deficit increased sharply to 2.4% of GDP in first quarter"

Is not the same as

equals to 2.4% of Indian GDP

From your reply.

 

[BABA AGHORI]

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.

Sir, g devaluation will decrease the liability of the govt. to pay back trillions of Rupees internal Debt. if it is able to get more loans from external sources. This will increase the amount of money available in the market. if this money wisely used can help small SME and increase jobs.

Whereas devaluation will increase external Debt liability and because Foreign reserves have dropped under current account deficit. It will be really difficult to get new loans from IMF and WB without going for devaluation.
So it is a catch 22 situation.

 

[Great Sachin]

17 ,000,000,000 (17 billion) is nothing

US is under 20 Trillion debt

20,000,000,000,000 (With 12 zeros)

ok..so Pakistan economy much much stronger than US economy...

 

[BABA AGHORI]

17 ,000,000,000 (17 billion) is nothing

US is under 20 Trillion debt

20,000,000,000,000 (With 12 zeros)

its like -
Let me make it bit simpler -
There is a person A.
He has 15.3 dollars in his savings account.
And has to pay 17 dollars just as installments for previous loans.

The problem arises that end of the term with current status it will b 2.7 dollars in minus.
And financial statement and plan show, the person has to spend more than what he will earn in next term too.

Now if US has 20 Trillion debt it can print it's dollars as much it wants and pay in dollars. whereas Pakistan cannot print in dollars and have to either earn it, borrow it, b*g it or default.

 

[Chak Bamu]

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.

How would devaluing of Pakistan Rupee 'shatter' exports? Please educate me.

I have had a number of University Economics courses, and have run manufacturing businesses that exported textiles to USA & KSA, but I have never ever come across a statement like yours. I am intrigued. I would very much like to know what black magic shall break the connection between devalued currency and Export growth? It works like this everywhere, but may be you can educate me about the dark science that applies only to Pakistan for some reason.

Be careful when you comment on devaluation ,Pakistan is Import driven economy and more devalue currency gets more inflation rises ,over night your loans appreciate , may i know the purpose of devaluation from your side ?

Temporary duties and some form of local rebate on exports would be needed along with a managed slide in value over the next few months. Pakistan's economy can do without an exchange rate shock just yet.

The issue of Pakistan being a non-competitive economy stems from competing and clashing internal interests. But we are turning a corner here. If elections happen on time, we shall see an acceleration of GDP growth.