Pakistan's Economy: Six questions

[Jackdaws]

India is causing the disruption which is affecting Pakistan economy. This is one cause and there are many others was responding about India Bangladesh and Pakistan working together.

How is India disrupting it?

 

[Humble Analyst]

How is India disrupting it?

Supporting proxies in Pakistan, if you are not aware of it then I cannot convince you.
Indian National Security Advisor Ajeet Daval confessed it in a lecture he delivered. What was happening through Afghanistani Indian consulates is an open secret. If India becomes a good neighbor Pakistan will be too but it does not and World looks the other way as India is the natural ally. With the end of Cold War Pakistan is not needed.

 

[VCheng]

if that happens nukes will be used against those countries supporting unrest and helping rebels and traitors

Yes, and the other side(s) will just accept this. Right.

it worked for usa in ww 2

As I said, BS logic.

 

[Wa Muhammada]

circumstances in region indicates that final and decisive war of Ghazwaehind and other wars near end of times is very near,so in my opinion we should be prepared for war and not ignore it with excuse of fixing economy.We have not much time left for fixing economy,we should focus on how to win a war .When we will win this final war economy will become good INSHALLAH


We are not coward hindus who fear from war and will fight until last drop of blood

I agree that the time may be close... but how close we don’t know...so we cannot and should not stop planting the seeds for our tomorrow.

 

[Abdussamad]

Your Govt spending is currently being bankrolled by your citizens.

No, it's being bankrolled by foreigners like it always has. 13th IMF bailout and counting.

Regarding the questions in the OP

1. Yes it's quite possible that the rupee may have to fall that low before exports increase. Years of overvaluation have led to this

2. Depends on how high inflation goes

3. See 2. Interest rate depends on inflation and debt servicing expenses depends on interest rates. Also share of debt servicing depends on total size of the budget.

4. Industry is not borrowing money except for working capital requirements. Banks aren't lending much to the private sector either since they prefer to lend risk free to the govt. instead. So no it won't do much borrowing. It won't grow but it might survive.

5. IDK but other countries with far higher cost of doing business are able to compete in many of the same industries because their workers are more productive. The higher productivity comes from education, training and investment in technology. In China for example their garment factory workers make as much as our white collar workers yet they have a huge share of the textile market. So it's not just about the cost of electricity or the cost of labour.

6. Turkey and India maybe. 500% is a misleading figure here because you are not taking into account the rupee's value and the growth rate of the economy. It's much larger now than back in 2008. You should look at it in percentage of GDP instead.

Essentially the country is going through a stabilization phase which is painful. Because the people let the government spend excessively on defence at the expense of human development the country can't really grow for very long even once we come out of the stabilization phase. At some point in the next decade or so we'll probably go through hyper inflation and a recession.

 

[Abdussamad]

circumstances in region indicates that final and decisive war of Ghazwaehind and other wars near end of times is very near,so in my opinion we should be prepared for war and not ignore it with excuse of fixing economy.We have not much time left for fixing economy,we should focus on how to win a war .When we will win this final war economy will become good INSHALLAH

how will we fight this war without money?

we actually can't fight a protracted war anyway since we don't have much in the way of petroleum reserves. i think the total stock in the entire country will last us just 2 weeks. if the west imposes sanctions or india enacts a naval blockade we won't be able to import more either.