Featured Pakistan’s debt, liabilities sour past the size of its economy

[m52k85]

Imran Khan was fooled by IMF and its stooges in Pakistan. The Army must stick to what its good at, if it goes out looking for an economic manager there is high chance they will make a mistake.

Now let me tell you the single biggest give away: High interest rate pre-pandemic. Standard western economics was which they themselves have abandoned was applied vis-vis interest-inflation trade-off. Doesnt work generally, more so doesnt work in Pakistan. How many of us think "oh we will not eat out because interest rate in savings is so good these days".

Yeh tho hona tha

 

[ziaulislam]

Imran Khan was fooled by IMF and its stooges in Pakistan. The Army must stick to what its good at, if it goes out looking for an economic manager there is high chance they will make a mistake.

Now let me tell you the single biggest give away: High interest rate pre-pandemic. Standard western economics was which they themselves have abandoned was applied vis-vis interest-inflation trade-off. Doesnt work generally, more so doesnt work in Pakistan. How many of us think "oh we will not eat out because interest rate in savings is so good these days".

Yeh tho hona tha

Kya hona tha?
Pakistan has doen astonishly better

Its solved all its deficit problems and kep its gdp unchanged

While looking at your neighbour gdp shrank by 25%!!!!

So i doubt you are this illiterate so your rona dohona can only have two possibilities

1. You are paid by PMLN
2. You hate IK /niazi shahab

 

[ziaulislam]

_---

On debt THID ARTICLE IS WRONG
PAKISTAN debt is 86-87% of economy

First target should be 60-70% this is easily acheiveable by 2023

Second target should be sustainable growth i.e growth that doesnt effect macroeconomical stability..printing a whole bunch of notes and fueling spending isnt growth but a poltical gimck..


For reference india debt to gdp in stable environment was 87%(last quarter 2019 projection).. It has probably crossed 110% due to corona virusn. in 2012 this was only 62%...

So as i said multiple times i am not worried about debt of pakistan ...

I am worried about EXTERNAL DEBT, fiscal deficit(pretty bad but even now, covid situation), current acc deficit (resolved now), reforms (slow) and basic investment in health & education to improve HDI(slow)

 

[m52k85]

_---

On debt THID ARTICLE IS WRONG
PAKISTAN debt is 86-87% of economy

First target should be 60-70% this is easily acheiveable by 2023

Second target should be sustainable growth i.e growth that doesnt effect macroeconomical stability..printing a whole bunch of notes and fueling spending isnt growth but a poltical gimck..


For reference india debt to gdp in stable environment was 87%(last quarter 2019 projection).. It has probably crossed 110% due to corona virusn. in 2012 this was only 62%...

So as i said multiple times i am not worried about debt of pakistan ...

I am worried about EXTERNAL DEBT, fiscal deficit(pretty bad but even now, covid situation), current acc deficit (resolved now), reforms (slow) and basic investment in health & education to improve HDI(slow)

So do you think we are doing ok external debt? What numbers can you give to support this?

I agree domestic debt is not as important to look at, but my question is why pay near 2 trillion for debt servicing when you can get away with 700 billion? All it takes is to lower the domestic interest rate. The extra 1.3 trillion could be spent on infrastructure/construction, education, or even ehsas program. I personally of that school of economics that believes in 'targeted helicopter money', ehsas is great at that, especially after Dr Nishtars efforts in cleaning up the lists.

All I alluded to in my initial post was:
i. There is no evidence lower interest rate causes inflation in Pakistan (see likes of research by Dr Ishrat on major sources of inflation in Pakistan)
ii. All over the western world and developed eastern world, they keep interest rates low (near zero) to encourage investment. Just go look at financial statements of public listed companies pre-pandemic and you will know what sort of double wamy the high interest rate was.

This is what I call being sold out to IMF. Asad Umer knew much better. I hope you can do better than calling be IK hater or Nawaz stooge.

 

[The Accountant]

So do you think we are doing ok external debt? What numbers can you give to support this?

I agree domestic debt is not as important to look at, but my question is why pay near 2 trillion for debt servicing when you can get away with 700 billion? All it takes is to lower the domestic interest rate. The extra 1.3 trillion could be spent on infrastructure/construction, education, or even ehsas program. I personally of that school of economics that believes in 'targeted helicopter money', ehsas is great at that, especially after Dr Nishtars efforts in cleaning up the lists.

All I alluded to in my initial post was:
i. There is no evidence lower interest rate causes inflation in Pakistan (see likes of research by Dr Ishrat on major sources of inflation in Pakistan)
ii. All over the western world and developed eastern world, they keep interest rates low (near zero) to encourage investment. Just go look at financial statements of public listed companies pre-pandemic and you will know what sort of double wamy the high interest rate was.

This is what I call being sold out to IMF. Asad Umer knew much better. I hope you can do better than calling be IK hater or Nawaz stooge.

 

[ziaulislam]

So do you think we are doing ok external debt? What numbers can you give to support this?

I agree domestic debt is not as important to look at, but my question is why pay near 2 trillion for debt servicing when you can get away with 700 billion? All it takes is to lower the domestic interest rate. The extra 1.3 trillion could be spent on infrastructure/construction, education, or even ehsas program. I personally of that school of economics that believes in 'targeted helicopter money', ehsas is great at that, especially after Dr Nishtars efforts in cleaning up the lists.

All I alluded to in my initial post was:
i. There is no evidence lower interest rate causes inflation in Pakistan (see likes of research by Dr Ishrat on major sources of inflation in Pakistan)
ii. All over the western world and developed eastern world, they keep interest rates low (near zero) to encourage investment. Just go look at financial statements of public listed companies pre-pandemic and you will know what sort of double wamy the high interest rate was.

This is what I call being sold out to IMF. Asad Umer knew much better. I hope you can do better than calling be IK hater or Nawaz stooge.

DO YOU HAVE A SOLUTION FOR 24 BILLION DOLLARS OF PROJECTED CURRENT ACCOUNT DEFICIT(2 BILLION DOLLARS PER MONTH)


I AM LISTENING TELL ME....CURRENT ACCOUNT DEFICIT IS DEFICIT YOU NEED TO FILL THROUGH BORROWING...

SO GOVT WAS SUPPOSE TO BORROW 24 BILLION DOLLARS OR DEFUALT

GOVT HAS NOW MADE THAT DEFICIT SURPLUS SO YEAH I AM HAPPY AND ASTONISHED HOW THIS WAS ACHEIVED...THUS EXTERNAL DEBT WILL STABALIZE AS YOUR CURRENT ACCOUNT DEFICIT IS NOW SURPLUS

NOW DONT INSULT YOUR INTELLGIENCE YOU ALREADY KNEW THIS..

and hence the CAPS so u can listen..as its not problem of knowing but LISTENING

 

[ziaulislam]

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Lower interest cause low saving which results in less money for banks and less capital for GDP growth this makes govt to NOTE pritnting (state bank lending) which causes inflation and CAD


So yeah low interest wont cause inflation it work very good for current govt as the additonal capital it save from low interest could run in billions or even trillions but in 3 years u dont have saving(which fell to historical low in pmln era) then u panic and start printing notes and then u go into CAD and ...BURST..IMF..

Its happening for last 40 years under jiyalas ans matwals so eveeyone knows this

 

[Jungibaaz]

No need to ponder overlong over split milk, what’s done is done. Poor management, instability, wars, political crises and now covid, all have done a number on our economy. We need a better political system that produces the best results, one that can weather storms a little better and doesn’t create internal storms that undermine us further.

Having a working system is not complicated but it requires a lot of soul searching to find, a lot of political effort from ordinary people to establish, and then a lot of vigilance to maintain it. We’re on square one, assuming the next ten years are going to be better than the last 10 years is a pipe dream, it’ll remain so as long as the foundations aren’t there.

 

[ziaulislam]

No need to ponder overlong over split milk, what’s done is done. Poor management, instability, wars, political crises and now covid, all have done a number on our economy. We need a better political system that produces the best results, one that can weather storms a little better and doesn’t create internal storms that undermine us further.

Having a working system is not complicated but it requires a lot of soul searching to find, a lot of political effort from ordinary people to establish, and then a lot of vigilance to maintain it. We’re on square one, assuming the next ten years are going to be better than the last 10 years is a pipe dream, it’ll remain so as long as the foundations aren’t there.

we did far better in covid..infact the loss is minimum. The major loss happened in loss exports and possibly now afterwards in remittances

 

[batmannow]

Pakistan’s debt, liabilities sour past the size of its economy
SAMAA | Samaa Money - Posted: Aug 29, 2020 | Last Updated: 8 hours ago

​

Pakistan’s outstanding debt and liabilities reached Rs44.6 trillion as of June 30, 2020 going past the size of its economy, according to the statistics the State Bank of Pakistan published on Thursday.

The total debt and liabilities increased by more than a tenth in the latest fiscal year and now stand at 107% of its GDP, which stands at Rs41.7 trillion, according to the central bank’s data.
This is much higher than the 60% limit as described under Pakistan Fiscal Responsibility and Debt Limitation Act 2005 and it has been above this line since the time of PML-N government. In fiscal year 2018, the last year of the PML-N government, the total debt and liabilities were Rs29.8 trillion or 86.3% of the GDP, therefore, the present set-up has added another Rs14.8 trillion to the national debt since then.
This mountain of debt leaves Pakistan with no money to spend on its people. This is because more than 40% of its budget is spent on repaying the previous loan. Successive governments have failed to meet tax collection target, which results in lower revenue. On the other hand, they end up spending more than what’s allocated in the budget. Higher spending and lower revenue creates large budget deficit, which is then plugged through more borrowing and the cycle goes on.

Pakistan's debt, liabilities sour past the size of its economy

The country now owes Rs44.6 tn

www.samaa.tv

Actully it's not much matters we can always ask our asim bajwas to take care of those, and they ill do that!

 

[Jungibaaz]

we did far better in covid..infact the loss is minimum. The major loss happened in loss exports and possibly now afterwards in remittances

We have done well so far on the health front, much to everyone’s surprise, including mine.
But covid is not over yet, as the Starks say ‘winter is coming’.

Also, I think it’s too soon to say that we weathered the storm completely at this time. It doesn’t matter even if no single case in Pakistan was observed, the global economy is interconnected, the world is suffering and we will feel the effects. If for example the Chinese suffer poorer export appetite we can expect fewer investments from them and weaker export potential out there for us. If the Arabs are suffering low oil prices, yes we gain, but that oil also pays the wages of our workers in the gulf who send dollars home, they’ll have less to send home. Etc. You can see what point I’m making here.

Also, due to the fact that our economy is weak and we were already in a financial crisis pre-covid means that we are more susceptible to the impact it has on economies. Major world powers are pumping hundreds of billions of dollars, if not trillions into their economies and banking systems to sure up their economies, we have no such ability or capacity for stimulus. I hate to be so pessimistic but it’s not over yet so let’s keep things in perspective.

 

[m52k85]

DO YOU HAVE A SOLUTION FOR 24 BILLION DOLLARS OF PROJECTED CURRENT ACCOUNT DEFICIT(2 BILLION DOLLARS PER MONTH)


I AM LISTENING TELL ME....CURRENT ACCOUNT DEFICIT IS DEFICIT YOU NEED TO FILL THROUGH BORROWING...

SO GOVT WAS SUPPOSE TO BORROW 24 BILLION DOLLARS OR DEFUALT

GOVT HAS NOW MADE THAT DEFICIT SURPLUS SO YEAH I AM HAPPY AND ASTONISHED HOW THIS WAS ACHEIVED...THUS EXTERNAL DEBT WILL STABALIZE AS YOUR CURRENT ACCOUNT DEFICIT IS NOW SURPLUS

NOW DONT INSULT YOUR INTELLGIENCE YOU ALREADY KNEW THIS..

and hence the CAPS so u can listen..as its not problem of knowing but LISTENING

Yes dear there was a solution for 24 bn CA deficit of yester year without selling ourselves out, but no political party nor the army has/had the stomach for it. If we could eat grass to make nukes, couldnt we bake instead of fry, stop drinking tea, rationalize our crops (away from water intensive sugar which also needs subsidy for over-produced export) etc to earn our sovereinity back on the economics side?

That was the spirit of the first gen Pakistanis, reduce import bill of food to zero. For Gods sake, we can be the food basket of the region yet we import food. Once food imports were zero, just go through the other lines. Mobiles, could we rationalize there? etc etc. Notice how I havent mentioned oil and gas since thats a necessity, but things could be done there also.

It is a blessing of Allah the CA deficit has stabalised. How much of that has come from policy and how much from exogenous factors, thats not hard to see.

Oh and please drop the drama, Im happy to answer your questions without it.

 

[ziaulislam]

Yes dear there was a solution for 24 bn CA deficit of yester year without selling ourselves out, but no political party nor the army has/had the stomach for it. If we could eat grass to make nukes, couldnt we bake instead of fry, stop drinking tea, rationalize our crops (away from water intensive sugar which also needs subsidy for over-produced export) etc to earn our sovereinity back on the economics side?

That was the spirit of the first gen Pakistanis, reduce import bill of food to zero. For Gods sake, we can be the food basket of the region yet we import food. Once food imports were zero, just go through the other lines. Mobiles, could we rationalize there? etc etc. Notice how I havent mentioned oil and gas since thats a necessity, but things could be done there also.

It is a blessing of Allah the CA deficit has stabalised. How much of that has come from policy and how much from exogenous factors, thats not hard to see.

Oh and please drop the drama, Im happy to answer your questions without it.

Yes the solution was not to put yourself in this position which out people did 7 times by voting 4 times for nawaz sharif and 3 times for zardari and co
mark my word, majority will vote again for nawaz sharif, maryum nawaz and bilawal bhutto

its easy to say ban this and ban that..banning doesnt work..and has never worked else where, people will simple do smuggling