Pakistan to ask Saudi Arabia, UAE: Convert $5 bn deposits into loans

[nahtanbob]

You still haven't looked at the bigger picture...

If there is no risk involved with charging interest, how is there "risk" without charging interest??

All banks & governments lend money on the basis that it can be returned, with interest so lending without interest shouldn't matter since you only lend money in the first place if you know you'll get it back.

there is risk with getting your loan back. who is more likely to pay back $1 billion loan - Saudi Arabia or Pakistan ?
The interest rate charged reflects the risk and time value of money

Is money always paid back ? Individuals die. Companies go bankrupt. businesses fail. countries disappear. currencies are made obsolete. you should study the history of money

why is gold valuable ?

 

[BRAVO_]

admins should take actions against those members who are using abusive language like Dog or etc for other members and should strike a warning, every individual could have a difference of opinion and diversity make this world colorful .. that does not mean we take it to that personal level

 

[Itachi]

there is risk with getting your loan back. who is more likely to pay back $1 billion loan - Saudi Arabia or Pakistan ?
The interest rate charged reflects the risk and time value of money

Is money always paid back ? Individuals die. Companies go bankrupt. businesses fail. countries disappear. currencies are made obsolete. you should study the history of money

why is gold valuable ?

Interest still doesn't make sense and is a scam....a way for the rich to get richer and the poor to remain poor.

I have well studied the history of money.....I think you should take another look.

Gold is valuable since it has a intrinsic value....the $ doesn't since it isn't backed by anything, yet it is the prime currency in the world....tell me how that isn't a scam??

In the end, we can agree to disagree because I know you like interest & I don't.

 

[nahtanbob]

Interest still doesn't make sense and is a scam....a way for the rich to get richer and the poor to remain poor.

I have well studied the history of money.....I think you should take another look.

Gold is valuable since it has a intrinsic value....the $ doesn't since it isn't backed by anything, yet it is the prime currency in the world....tell me how that isn't a scam??

In the end, we can agree to disagree because I know you like interest & I don't.

I am fine with gold standard. there are pluses and minuses to it

To say there is no risk in making a loan or there is no time value of money. that does not work

 

[TheDarkKnight]

Brother Dark Knight, why has the PTI Government emulated the previous PML-N tenure but failed miserably at it so far?

Sixteen-months is a long time to "fix" the economy but all we see is Pakistan Tehrik-e-Insaf's Baby Debtzilla growing and no relief being given to the people.

How come the PML-N Government did not had to impose poverty on the nation, cut down imports, devalue the currency, decrease trade deficit, have the burden of $95 billion in external debt but still somehow managed to grow the economy at 5.2%?

sigh! This has been answered many times, but you my friend wont change your mind. In short the borrowing by PTI in just 16 months is due to the 20+ bln balance of payment crisis that your supreme leader left for this nation after all the achievements you just listed. Things were better until Panama case started with NS disqualified and Ishaq Dar went for "medical treatment". After that PMLN specifically sabotaged Pakistan's economy to show a 'middle finger' to establishment and lay a trap for next govt. The conditions we are facing now were fore-warned by economists during the last year of PMLN.

Having said that PTI could and should have definitely done better, the reforms agenda need to pick up pace and governance needs to improve. If you would like to point out how PTI would have plugged the massive trade and budget deficits that it inherited and still continued with the 'fairy tale' you depicted - I am all ears.

 

[bafxet]

Ask them to convert them into grant. Arabs are filthy rich 5billions is peanuts for them....

 

[Pakistan Space Agency]

... Things were better until Panama case started with NS disqualified and Ishaq Dar went for "medical treatment". After that PMLN specifically sabotaged Pakistan's economy to show a 'middle finger' to establishment and lay a trap for next govt. The conditions we are facing now were fore-warned by economists during the last year of PMLN.

Brother, that is nothing more than a conspiracy theory.

1. PML-N put it's full weight behind the 2018 General Elections to comeback for another 5-year tenure. Only disqualification of PM Nawaz Sharif and military interference prevented this. So sabotage of economy is nonsense.
2. China did not halt, "review" a single CPEC project during the PML-N's entire tenure. The "review" and indefinite feasiblity of projects from China's side only started as soon PTI Government came to power.

... If you would like to point out how PTI would have plugged the massive trade and budget deficits that it inherited and still continued with the 'fairy tale' you depicted - I am all ears.

Trade deficit and borrowing are not the issue at all. PTI Govermment can borrow $20 billion, $40 billion or $100 billion if it likes, doesn't matter. Pakistan needs political stability to have economic stability, otherwise it's impossible.

However, due to PM Khan's and PTI's super ego and 22-years of promises of not borrowing money and PM Khan even promising to commit suicide instead of going to IMF, resulted in creating such political instability in the country, by arresting and releasing everyone without any charge, all just to hide their own shame and inability to govern without borrowing, is what has caused this huge economic disaster of 2019.

PTI can borrow $20 billion more if it wants but it needs to ensure GDP is growing at 5.2%, stock market is back up to 50,000 points, currency is strengthen back to 40%, ends imposition of poverty on the public and Foreign Reserves are at least $9.6 billion like they in PML-N's tenure.