Pakistanis sink deeper in debt with 28% per capita increase

[BATMAN]

Have been seeing this thread for few days but finally free enough to engage.

So the debt has increase by 28% and devaluation of rupee has been some what 32%, which means PTI decreased actual debt by 4%?

That's bloody clever. New F. minister lend by Zardari, seems to know the trick.

 

[Norwegian]

However, if anyone is really interested, please read what Ishaq Dar himself says. Read it while being neutral and with an open mind. Read it not as if it was written by Ishaq Dar or PML leader but as a former Finance Minister who is more aware of finances than any of us.

Official facts and figures contradict your smart Finance Ministers bold claims.

That's bloody clever. New F. minister lend by Zardari, seems to know the trick.

So how did your great and smart finance minister Ishaq Dollar manage the country's finances? Country was on the verge of default after PMLN term ended.

 

[POPEYE-Sailor]

FBR Performance
No Facilities means No Tax .. No Per capita Income

https://www.facebook.com/

 

[Syed1.]

FBR Performance
No Facilities means No Tax .. No Per capita Income

https://www.facebook.com/

Only a proper chutia will make fun of someone who is actually sick. Not surprised at who made this video and who shared it.

 

[ejaz007]

Inflation is temporary. It will eventually go down below interest rate.
View attachment 603480

Any data beyond today is mere projection. Projections may come true and may not.

The problem with economy is that one wrong decision can bring about a domino affect and before you know its downward trend.

 

[KAL-EL]

Are credit cards highly used in Pakistan?

 

[Mav3rick]

These figures do not include roll over debt from previous governments. Here is total increase in external debt after CPEC "investments".

The figure I gave you was from the then serving PTI Finance Minister who on record said:

"External public debt was provisionally recorded at US$ 69.3 Billion at end March 2018"

http://www.senate.gov.pk/uploads/documents/questions/1535687032_486.pdf

The total external debt was 69.3 Billion by end of March, by end of June it was closer to US$ 76 Billion. While the debt was close to USD 70 Billion on 1st April 2018, is it possible that it rose by US$ 30 Billion in the next 3 months or thereabouts?

Why don't you stop calling CPEC "investment" as per PMLN propaganda? Investments do not lead to massive trade and current account deficits, growth in external debt, as it happened after CPEC.

All Governments claim CPEC to be a Chinese investment in Pakistan, this includes Military leadership. Even if Chinese investment in the project is a mere % of the actual investment in CPEC, it is still an investment. All major investments have to potential to cause CAD and TD in the early years which are offset by the returns in the coming years.

Inshallah won't help you here. There were no studies conducted to evaluate the price and cost of CPEC for decades to come. That's why Pakistani economy came to a standstill after CPEC started. Because it wasn't an investment but Chinese projects fueled by Pakistani trade, current account deficits and growth in external debt.

You are being pessimistic about CPEC. The Military is the guardian of CPEC and our military does not get involved in anything which does not generate hefty profits.

CPEC has been been claimed to be a game changed not just by PML but also by PPP, PTI and the Military. It will Inshallah become a game changer; Gawadar will compete with Dubai and be at par with Singapore in the next 15-20 years. And the entire CPEC route will create mushroom growth along the way thus propelling the economy to unprecedented levels.

Are credit cards highly used in Pakistan?

No, merely 2% - 4% penetration.

 

[Mav3rick]

Official facts and figures contradict your smart Finance Ministers bold claims.

During his tenure or afterwards?

So how did your great and smart finance minister Ishaq Dollar manage the country's finances? Country was on the verge of default after PMLN term ended.

When Ishaq Dar was disqualified, SBP reserves were at US$16 Billion whereas US$5 Billion were available with commercial banks; basically the country had over US$21 Billion. Then entered the incompetent Miftah Ismail but he also left with over US$ 10 Billion with SBP plus whatever was held by the Commercial Banks. Considering roughly 5 Billion/month expenses (imports) and 3.5 Billion/month of income (exports + remittances), can anyone really in say that Pakistan was on the verge of default? It is just another false story by PTI meant to hide its own failures.

http://www.sbp.org.pk/ecodata/FER/index.asp

 

[Norwegian]

Considering roughly 5 Billion/month expenses (imports) and 3.5 Billion/month of income (exports + remittances)

5 - 3.5 = 1.5 billion USD deficit per month
1.5 * 12 = 18 billion USD deficit in a whole year!

No wonder why you patwaris are called brainless.

The total external debt was 69.3 Billion by end of March, by end of June it was closer to US$ 76 Billion. While the debt was close to USD 70 Billion on 1st April 2018, is it possible that it rose by US$ 30 Billion in the next 3 months or thereabouts?

You forgot to add 18 billion USD in current account deficit left by your smart pmln govt. It adds on top of external debt each year.

All Governments claim CPEC to be a Chinese investment in Pakistan, this includes Military leadership. Even if Chinese investment in the project is a mere % of the actual investment in CPEC, it is still an investment. All major investments have to potential to cause CAD and TD in the early years which are offset by the returns in the coming years.

This is the most stupid thing I have heard. Investments mean foreign reserves coming inside the country. Deficits mean foreign reserves leaving the country. If CPEC is investment, how come Pakistan start losing foreign reserves massively as soon it started?

Pakistan’s total external debt and liabilities increased by $31.6 billion between FY15 and FY18, to reach $96.7 billion by September 2018. Owing to higher borrowing in order to finance the fiscal deficit, current account deficit in 2017-18 increased to $19 billion (5.9 percent of GDP), leading to depletion of foreign exchange reserves and financial crisis in 2018. The increased borrowing from China, both CPEC-related and commercial, at $3.9 billon and $4 billion, respectively in 2016-17 and 2017-18 has important implications for debt sustainability. Chinese foreign loans together with domestic borrowing increased the fiscal deficit to an unsustainable level and worsened the country’s debt profile rapidly in a short period of one year. As a result, Pakistan’s debt-to-GDP ratio increased significantly by 6 percentage points from 67 percent of GDP in 2016-17 to 73 percent of GDP in 2017-18 – well beyond the debt sustainability limit of 60 percent of GDP defined under FRDL Act 2005.

You are being pessimistic about CPEC. The Military is the guardian of CPEC and our military does not get involved in anything which does not generate hefty profits.

CPEC has been been claimed to be a game changed not just by PML but also by PPP, PTI and the Military. It will Inshallah become a game changer; Gawadar will compete with Dubai and be at par with Singapore in the next 15-20 years. And the entire CPEC route will create mushroom growth along the way thus propelling the economy to unprecedented levels.

Enjoy
https://defence.pk/pdf/threads/cpec-is-dead-somebody-tell-beijing.629336/

Any data beyond today is mere projection. Projections may come true and may not.

The problem with economy is that one wrong decision can bring about a domino affect and before you know its downward trend.

Inflation always come down after massive hike in interest rates. Just wait and see.

 

[ejaz007]

WPI indicating more double digit CPI
By BR Research on February 6, 2020

Many in the market may have been taken by surprise on the multiyear high CPI inflation for January 2020. Granted, that it was food driven, and not all of it was seen coming. But what was seen coming was double-digit headline inflation, and one that would not go away easy. BR Research had flagged the warning as early as July 18, 2019 (read: WPI heating up) as the Wholesale Price Index (WPI) was showing things heating up in the months to come, as it has acted as a reliable leading indicator. And things have heated up alright.

With January 2020 CPI inflation making headlines, WPI movement is warranted another look if it is again acting as a leading indicator. There appears to be a broad consensus on CPI inflation having peaked in January 2020. But then there was consensus earlier too, on inflation having peaked back in October 2019. Granted, no one saw the so-called sugar, wheat, onion and all sort of perishable and non-perishable food supply chain crisis coming.

Food sub-sector WPI (2007-08) base has notched up its highest reading in many years. Hardly surprising, as food CPI is also at a multiyear high. Only that while the recent surge in CPI inflation is primarily driven by food prices, the WPI is still heavily based on energy prices. WPI readings of food sector tend to move in tandem with the overall WPI reading – and it does not come across as a leading indicator. The recent surge in WPI of food sector, is by and large believed to be already incorporated in the CPI food movements.

It is the gas, power and transport related WPI that seems to be a good indicator of CPI. Recall that the energy related inflation had caused quite a stir in 2019. While there is significant difference between the CPI readings of new and old base for gas and power, there is not much between that for WPI. That is primarily because the new methodology considers different slabs for domestic consumption. Another reason is that the domestic sector, unlike commercial sector has been largely absolved from massive gas and power related price hikes.

The new base WPI readings for gas and power in fact lead to higher readings than the old base, whereas, it is the opposite with CPI. That is where WPI gas and power continue to be the most important leading indicator for CPI, having a considerable combined weight of 12 percent. In terms of impact, the gas and power subsector still has the highest impact even after the latest round of food inflation. Food with a 20 percent WPI weight, is catching up, but that could be short-lived, with food prices expected to return to normalcy.

So while the market may be right in expecting CPI to have already peaked, who is to say the energy prices won't face another significant round of upward revision. Yes, the government may want to minimize the impact on domestic consumers on both gas and power fronts, but that relief will invariably be a burden on other sectors, such as commercial. Don't rule out another round of energy related WPI inflation, leading to higher CPI down the road. Not just yet.

https://www.brecorder.com/2020/02/06/568355/wpi-indicating-more-double-digit-cpi-2/

 

[POPEYE-Sailor]

Only a proper chutia will make fun of someone who is actually sick. Not surprised at who made this video and who shared it.

He is not sick he resigned/fired, u will receive this news dont worry then stand at mirror and ask who is chutia, I hope u will find one.

 

[khanasifm]

No one want to pay taxes and go on strike and you want to get out to debt how??

Business go on strike, transporters fo on strike , agriculture tax ?? Yeh right .....

The only way out is now as a nation has to pay to get out not Uncle Sam or imf

Pti or any GOVT will fail

at least pti took away subsidies which was form of bribe to various sectors are gone or partially gone

Lastly these failed entities railway, steeel mill, airline etc privatize and everyone go on strike

But unless the nation tighten its belt stop electing crooks there is no future

 

[Indos]

Are credit cards highly used in Pakistan?

Better debit card then credit card.

 

[BATMAN]

No one want to pay taxes and go on strike and you want to get out to debt how??

Business go on strike, transporters fo on strike , agriculture tax ?? Yeh right .....

The only way out is now as a nation has to pay to get out not Uncle Sam or imf

Pti or any GOVT will fail

at least pti took away subsidies which was form of bribe to various sectors are gone or partially gone

Lastly these failed entities railway, steeel mill, airline etc privatize and everyone go on strike

But unless the nation tighten its belt stop electing crooks there is no future

As per your statement, when people of Pakistan don't want to pay taxes, why Imran Khan wants to collect taxes?

Previous govts. have survived with far less taxes.

By the end of Imran Khan tenure, debt will be doubled and nation would require to pay double and i agree non other than nation shall suffer for voting a donkey.

When Musharraf offered Steel Mills and PIA up for sale Imran Khan got fanatic.

Public in streets says even crooks are better than Donkey king.

 

[Rahil khan]

No one want to pay taxes and go on strike and you want to get out to debt how??

Business go on strike, transporters fo on strike , agriculture tax ?? Yeh right .....

The only way out is now as a nation has to pay to get out not Uncle Sam or imf

Pti or any GOVT will fail

at least pti took away subsidies which was form of bribe to various sectors are gone or partially gone

Lastly these failed entities railway, steeel mill, airline etc privatize and everyone go on strike

But unless the nation tighten its belt stop electing crooks there is no future

Let's do some basic maths....As a commoner i use 150 litres of petrol per month. On each liter i pay approximately 50 rupees tax to the government....every month almost 7500 and every year 90000 rupees EXCLUDING grocery items, food, utility bills, toll taxes on daily basis...Right now i am paying over two hundred thousand rupees of taxes to this F****D up government without even any kinda health, job or even life security whatsoever.

We live in a country where a property tycoon's assets worth 190 million GBP get seized by National Crime Agency UK, by declaring those assets derived from "bribry and corruption overseas" and no media, political or institutional circles are willing to even talk about it here. FBR can make me filer or non filer based on my annual income, but these organizations can't put their hands on such "Godfathers", because they have penetrated deep in every sphere of this unfortunate nation. Real change will occur when ownership of land would be divided on small scale to many deserving in order to increase productivity like Indians did in East Punjab. Can this government bring real change? I leave this up to you folks.