Pakistan 's external debt, liabilities hit record $73 BILLION dollars level

[footmarks]

So, all of the cumulative increase in external borrowing ($12Bn) has gone to reserves? this is like taking personal loan at high interest rates and putting it into your bank locker.

 

[el che]

Though off topic, the biggest problem that India has are its Bad loans to the tune of Rs.6 lakh crores. The actual figure is much higher considering the window dressing done in govt. banks. Just saying that RBI regulation is a cushion for Indians bank from global effects is half truth. How did RBI allow the creation of this monster. It is a namesake autonomous body. The situation is very critical. If the govt. tries to clean the balance sheet it will affect the big corporates and huge reduction in FDI. That is the downside of globalization and liberalization. At any cost the image of India as investment destination cannot be tarnished while the Banks are suffering from this cancer.

 

[Viper0011.]

@waz is right, no need to close thread, just because of a few trolls.

He's also correct in that a lot of Pakistanis whom are praising NS and his government, ARE ignoring a lot of problems, including the increase in debt liability. In fact, I'd go so far as to say that debt isn't even the biggest problem Pakistan has, it is the inability to pay back that debt, due to incompetence.

No one's ignoring any problems, nor does anyone backs NS vs. that guys IK. India has a debt issue, China has a huge debt issue, the US has had a huge debt issue, in fact, the US borrowed 1 trillion from China not too long ago.

In Pakistan's case, when you guys (the nation) hasn't paid taxes for the past 65 years, but expect the government to give every facility to a common Pakistani (some how, from their own pockets)? And the government wants to grow Pakistani system, what other ways will you do it outside of taking more debt on to build stuff, setup power plants, etc, etc?? There is no way.

In the US, people who know finances will tell you that all debt is bad, and the home mortgage related debt is the only good debt as in long term, you build equity. Similarly, any debt being used to grow the Pakistani job market, which in turn grows the Pakistani economy and the tax base, is a good debt. As the tax base increases and people go spend more money in buying things that they couldn't before, the economy grows. And it created more employment, taxes, etc, etc. All of which will be used to pay off debt.

There is a way to make up a case about things. Then there are silly comments without even grasping the reality. These posts are the second part here.

Pakistani revenue on taxes has soared to over 4 trillion in the past one month (just one month into the new Fiscal year of 2016-2017, August to July). This much tax, has never been gathered before and you still have 11 more months to go in the year. If let says, back from the 60's, Pakistan tax collection was 4-5 trillion or more, you'd have already surpassed Mexico as you'd be paying for a lot of stuff on your own, without asking uncle sam or the IMF for money.

You'd have built your own education base, hospitals, research, infrastructure, etc, etc since the 60's, And today, would be the continuous growth of 50 years. Not just growth from the past three years!! Things need to be built to attract investments and provide a proper infrastructure for the country to grow. The nation comprises of 98% tax thieves sadly. So what options do you have left? You have no option but to take debt, and since you are on a growth path, everything needs to be build out and the only financing is debt or aid.

But surely, as the growth takes place, like the world and the economic houses like the NASDAQ, Bloomberg, etc, can see, and are predicting, the tax base and the economy will expand constantly. Giving time and money to be paid back. Till them, for those of you, who don't even have expertise in this line and you rely on cheap politicians statements as if they were the Chief Economist by the World-bank. you need to chill out and watch the 5 year plan complete in 2018 and how it would tackle the debt.

The global markets portraying Pakistan as one of the fastest growing economy aren't stupid to risk their reputation and tell their clients to pour billions into a country that would default due to non payment of debt. You guys can use some common sense.

 

[HAIDER]

https://www.thenews.com.pk/print/145852-Alarm-bells

Capital suggestion

Power sector: For the first time ever in our long chequered history, receivables in the power sector have crossed Rs684 billion. In 2012, when the OPEC Basket Price stood at $109 per barrel, the PPP government claimed that the multi-billion rupee circular debt was because of the high price of oil. In 2013, the newly formed PML-N government, after paying off a colossal Rs480 billion, claimed that the menace of circular debt has been buried for all times to come.

OPEC Basket Price, a gift of God for the PML-N, now stands at $45 a barrel, a decline of nearly 60 percent. Clearly, our power sector terror has little to do with the international price of oil. Clearly, our power sector terror is a domestic governance issue – and the PML-N has not been able to control it. Lo and behold, no one in the official circles is alarmed.

Remittances: In July 2015, overseas Pakistani workers remitted back $1.66 billion. In July 2016, the same went down to $1.33 billion; a hefty 20 percent decline. Our economy literally dwells on hard currency remittances by our workers aboard. A 20 percent decline should, therefore, be ringing alarm bells all over but the State Bank of Pakistan (SBP) remains complacent.

An estimated 1.5 million Pakistani workers in Saudi Arabia send back nearly $6 billion a year. The Bin Laden Group, the largest construction conglomerate in Saudi Arabia, has laid off 25 percent of its work force. Potentially, a couple of hundred thousand Pakistani workers could be sent back amounting to a $2 billion yearly loss from Saudi Arabia alone.

The SBP’s July remittance data is scary. Remittances from the UK are down 38 percent, perhaps a Brexit fallout. And remittances from the US are down 34 percent (yet unexplained). Lo and behold, no one in the official circles is alarmed.

Exports: In July 2013, the first month of the PML-N government, our exports stood at $2.1 billion. Last month, our exports amounted to $1.5 billion; an alarming 30 percent decline. Lo and behold, our export target, set under the Strategic Trade Framework 2015-18, is $35 billion (remember, we failed to achieve the $24 billion export target set for FY 2016).

Foreign Investment: In 2014, total foreign investment was recorded at $4.4 billion. In 2015, the same fell to $2.7 billion and the SBP’s provisional figure for 2016 stands at a paltry $952 million. That’s a decline of 77 percent since 2014. Lo and behold, no one in the official circles is alarmed.


Debt: In June 2015, our total debt and liabilities stood at Rs19.8 trillion. The SBP’s figure for 2016 stands at Rs22.4 trillion. In dollar terms, our total debt and liabilities have gone up by an alarming $26 billion in just one year. To be certain, this trend is not sustainable. Lo and behold, no one in the official circles is alarmed.

call 1800 isaac dar.

 

[Pakistan First]

That's weird.

If you take debt to repay debt and you actually do, it cancel out in your balance sheet.

Power projects and infra should result in future returns.

I am worried by bad debt.

Yeh aaya mera munshi.

 

[-xXx-]

Yeh aaya mera munshi.

What does that mean, an attempt to insult?

Did that make you feel good, on internet?

 

[Imran Khan]

What does that mean, an attempt to insult?

Did that make you feel good, on internet?

why so serious brother its internet and you are on one of the biggest indo-pak trolls warzone

 

[Pakistan First]

What does that mean, an attempt to insult?

Did that make you feel good, on internet?

You're an accountant, aren't you?
I stated, "Here comes the accountant".
And if you feel insulted if one calls you an accountant, then I can't help it.

 

[Malik Usman]

hum se ziada tension inko hai bhai hamsaya ho t aysa

They are born to be jealous by others...

 

[Imran Khan]

They are born to be jealous by others...

they are careful man look how much they care us

 

[Hello It's me]

why so serious brother its internet and you are on one of the biggest indo-pak trolls warzone

That's Youtube sir

 

[Imran Khan]

That's Youtube sir

bhai ji youtube is joke infront of some of our threads we have almost nuked eachother here many times like after bombay attack pathankot attack peshawer attack quetta attack

 

[Talwar e Pakistan]

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

 

[That Guy]

But but but, the stockmarket is about to become the bestestestest ever!!!

@Viper0011.

The stock market is one of the few gems that Pakistan can be proud of, and is actually mitigating a lot of the problems that Pakistan is facing. Having said that, there are so many problems, like the issue with how taxe collection is being handled, that Pakistan is once again in financial problem.

 

[Nilgiri]

The stock market is one of the few gems that Pakistan can be proud of, and is actually mitigating a lot of the problems that Pakistan is facing. Having said that, there are so many problems, like the issue with how taxe collection is being handled, that Pakistan is once again in financial problem.

The stock market mitigates its true. It helped India a lot in the 90s in some very turbulent times.

But its performance (esp from a low base) is no substitute for structural reforms Pakistan sorely needs in its macroeconomy.