Pakistan's debt worth $27b to mature in two years: IMF

[Indus Pakistan]

A majority of the loans taken during that period actually went into paying the previous loans.

And who took them out? Lord Mountbatten? You do know Bhutto and Sharif franchises have been at the helm going on four decades now.

 

[Abdussamad]

IMF, ummah and iron brother are there to bail us out.

 

[kris]

27 billion USD debt maturity and 27 billion USD debt payment are two different things...it does not mean 27 billion USD payment in two years, rather it mean the interest of say 6%-8%(depending on IMF terms) per year on debt of 27 billion USD is payable in two years...that comes to about 2.7 billion USD, in addition to the current interest.

A Bond matures, afaik there is nothing like that for debt

 

[Cmdr Keen]

No one is talking about the military considering politicians cant do anything without the go ahead from hq.

Half the businesses in Pakistan are controlled by the military. Most of the RICH expats in UK..us and Canada are.made up of military families and retired officers /generals....

Weren't the Sharif and bhuttos..
" designated drivers " when Pakistan was not under military rule to avoid U.S. Sanctions.

Is the military dominated economy going bust? ..... Quite interesting to see the effects of a top heavy economy.

Ps: IMF loan won't go through....unless the Afghan situation is straightened o ut...

even then...expect harsh terms.

 

[Abdussamad]

Is the military dominated economy going bust? ..... Quite interesting to see the effects of a top heavy economy.

Military economy is booming because they control the levers of power.

 

[Cmdr Keen]

Military economy is booming because they control the levers of power.

I heard they control most of the black trade too?

Is it one possible reason that it's booming in yer view?

 

[khail007]

Pakistan should exercise option of auditing of loans thru international auditors and agree to pay only those loans which were used on developments/projects; rest all unaccounted money should be recovered from those in whose tenure loan was sanctioned.

 

[Krptonite]

What might one do to get out of this predicament? , taking more loans to pay off old ones seems counterproductive.

 

[SoulSpokesman]

@Indus Pakistan

Kaptaan sb,

Much of the (incremental) debt which was acquired during Vikas Purush MNS's time has gone into funding long-term assets- power plants, roads (part of CPEC corridor) and the likes. They will eventually pay for themselves. Plus, a large amount of circular debt of the power sector was taken over. Yes, there will be short-term asset liability mismatch which is understandable given that Pak is unable to easily contract long-term commercial loans, but I am sure a mix of funding from IMF, the taller than mountain friend PRC and brotherly Muslim countries like KSA can take care of that, provided there is a stable govt.

Regards

 

[valkyr_96]

Half the businesses in Pakistan are controlled by the military.

Please back up you claim

 

[Chhatrapati]

In this situation, why can not Pakistan ban every import except those items that will generate export for your industry...Apart from Petrochemical,Medicine and heavy industrial item that can be used by your industry, rest of the items can be restricted

Will lead to inflation, also they import essential goods and raw materials that are re-exported as finished goods. Stopping imports is not a smart move, it's the easy move that works only on paper.

 

[VCheng]

And who took them out? Lord Mountbatten? You do know Bhutto and Sharif franchises have been at the helm going on four decades now.

ALL of them did, not just the Bhuttos and Sharifs, but all the military dictators and the bureaucracy and exploitative capitalists and feudals too. ALL of them left Pakistan without the economic foundations it needs to survive honorably over the long term by virtue of the choices and decisions they ALL made knowingly.

The consequences are now evident, and they will only grow from here onwards, no matter who or what is in power in Pakistan.

 

[AZADPAKISTAN2009]

It basically means we need to fix our tax collection in about 2 years and fix our import bill in 2 years

 

[xyxmt]

Yes we have to pay loan with interest

and we have to pay Chinese 12% interests too
Pakistan khatam ab, India me mithayan banto...Modi did it!!

 

[Vanamali]

It takes a chart to make things clear, God help Pakistan....

Only Pakistanis can help Pakistan, it should be clear of its priorities. It should start Nation building exercise, put International Politics in back burner. Personally I want healthy Pakistan because peaceful neighbourhood allows us to concentrate on our development and reduce unwarranted Defence expenses.

ALL of them did, not just the Bhuttos and Sharifs, but all the military dictators and the bureaucracy and exploitative capitalists and feudals too. ALL of them left Pakistan without the economic foundations it needs to survive honorably over the long term by virtue of the choices and decisions they ALL made knowingly.

The consequences are now evident, and they will only grow from here onwards, no matter who or what is in power in Pakistan.

Not trolling, don't you think, fighting India also contributed to current financial mess. India response to Pakistani action has less of military action but more of economic angle. Now India will use Masood case to pile up pressure to blacklist Pak, which will cost Pak approx 10 Billion per annum as per some Pak Govt guy. Is Kashmir worth that much to Pakistan??? India is waging war on Pakistan no doubt in it but Pakistan cannot use any of its wepons including Nukes. Now Pakistan is at juctujun where it has to take decision which will decide fate of your current and future generations.