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

[Pandora]

The Indian government does not issue sovereign bonds the way other governments do. Out of the total $101 billion of sovereign debt, $87 billion is accounted for by bilateral and multilateral credit, while IMF loans accounts for another $5.5 billion and trade credit for $7.2 billion. Since these are not in the form of market-listed sovereign bonds, market risk is really not applicable.

India's external debt $557 billion end june 2020. India doesn't take external debt to run their budget like Pakistan.

This is from the article quoting SBP

Who are you bull shiting here? India runs a current account deficit every year meaning you take loans to cover the gap every year. Since 2005 India has not once posted CA surplus meaning you took loans for the past 15 years to finance your budget so stop living in delusions. It is funny that every single data you quote is a fake and a lie.

https://data.worldbank.org/indicator/BN.CAB.XOKA.CD?locations=IN

I simply getting tired of quoting you official stats to correct you delusions.

As for financial position of Pakistan i showed you where you can find official latest data so stop quoting me stupid articles just bcz you are too lazy to research.

 

[Mrc]

The article is including public sector liabilities that are not responsibility of pak govt. Thus its painting a far more drastic picture than it really is

 

[khansaheeb]

Thank you IMF we are very indebted to you.

 

[Fracker]

This is a trick the opposition are pulling.
They are quoting debt in rupee terms because it sounds worse because of the depreciation of the PKR. In dollar terms the loan burden hasn't changed quite as much.

You have to start reading more real facts then foes, 2018 the external debit was 84.5 billion now it is 112 billion. So opposition will do what they are meant to do i.e. criticize government for everything. But reality isn't much flowery as government is protraying.

 

[KhanBaba2]

Who are you bull shiting here? India runs a current account deficit every year meaning you take loans to cover the gap every year.

We cover most of it up with FDI and not with loans. Businesses are ready to invest in India. Our loans (government + business) are approximately equal to our foreign exchange reserves. Which means we can basically cover almost all our loans. We have also been able to have most of our loans as long term so they do not create immediate pressure on repayment. We also have a minor current account surplus in the Jan-March quarter of this year.

 

[Pandora]

We cover most of it up with FDI and not with loans. Businesses are ready to invest in India. Our loans (government + business) are approximately equal to our foreign exchange reserves. Which means we can basically cover almost all our loans. We have also been able to have most of our loans as long term so they do not create immediate pressure on repayment. We also have a minor current account surplus in the Jan-March quarter of this year.

You may want to consult your other Indian friend bcz here every Indian has his own version.

 

[ARMalik]

Just more nonsense by idiots who have no clue about economy. Here is an example, According to the U.S. Bureau of Public Debt, United States has debt-to-GDP ratios of 104.17% and 105.4%. You have articles like these because these articles are written by economic donkeys.

 

[KhanBaba2]

You may want to consult your other Indian friend bcz here every Indian has his own version.

I consult data. Not people. Which data out of what i wrote do you want me to backup with links.

 

[Indos]

The Indian government does not issue sovereign bonds the way other governments do. Out of the total $101 billion of sovereign debt, $87 billion is accounted for by bilateral and multilateral credit, while IMF loans accounts for another $5.5 billion and trade credit for $7.2 billion. Since these are not in the form of market-listed sovereign bonds, market risk is really not applicable.

India's external debt $557 billion end june 2020. India doesn't take external debt to run their budget like Pakistan.

This is from the article quoting SBP

Friend, how come India is still borrowing from IMF. As far as I know IMF will not lend money to healthy economy ?

 

[Dalit]

I consult data. Not people. Which data out of what i wrote do you want me to backup with links.

What data? The same fudged data that your entire economy is based on?

 

[In arduis fidelis]

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

How much will it be if you convert it into US $?

 

[Shahzaz ud din]

Public debt sustainable, govt’s capacity to repay remains adequate, says MoF
SBP’s figures from June 2020 report country’s debt-to-GDP ratio at 87.2pc
By
Staff Report
-
August 29, 2020

ISLAMABAD: The Ministry of Finance (MoF) on Saturday said that Pakistan’s public debt is at a sustainable level and the country’s capacity to repay it remains adequate.
According to the latest date released by State Bank of Pakistan (SBP) the country’s total public debt-to-Gross Domestic Product (GDP) ratio has increased from 86.1 per cent in June 2019 to 87.2 per cent in June 2020. The same ratio had gone down to around 84 per cent in December 2019 due to a strong growth in Federal Board of Revenue’s (FBR) tax collection and strict control on current expenditure.
According to the MoF, the government was able to post a primary surplus in February 2020 after a gap of many years due to its prudent policies.
However, post February 2020, Pakistan’s economy was hit by a Covid-19 induced economic slowdown which led to reduction in revenues, increase in expenditures, decline in domestic and global demand, lower tourism and business travel and disruption of supply, trade and production linkages.
The MoF said that Pakistan’s debt-to-GDP ratio has increased due to a sharp decline in growth and an increase in the budget deficit primarily due to Covid-19 related expenditures, during the last four months of FY20.
However, it added that the government will be able to bring the debt-to-GDP ratio on a downward path over the medium term by increasing revenues and maintaining fiscal discipline.
According to the Global Economic Prospects report published by the World Bank in June 2020, Pakistan’s economy has fared better than its other South Asian economies during the coronavirus pandemic.

 

[Blacklight]

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

These figures in US$ would be more realistic.

 

[PradoTLC]

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

thanks to noonies and PeePeePee... useless as ever

 

[ziaulislam]

These figures in US$ would be more realistic.

Actually NO. Figure in rupees make more sense (but only as % of economy not an absolute value) also right now as country is in flux..high inflation after devaluation is going to jack up the country GDP in rupees and thus lower back the debt that rosed due to devaluation. So looking at % of gdp wouldnt make much sense for next 1-2 years.

Domestic debt is only an issue when u are paying to much to finance it. The 18 the amendment gave all the debt to the center so kinda a problem.

Debt has rose to 87% of gdp from around 73% and will probably peak at 90% and fell afterwards to ,70-75% in 2023

But really depends upon corona virus situation