Pakistan’s external debt, liabilities increase 12.3% to $85b

[SunilM]

ISLAMABAD:

Amid a weakening currency that has increased the cost of debt servicing, Pakistan’s external debt and liabilities have mounted to $85 billion by September-end this year – a year-on-year increase of 12.3%, reported the State Bank of Pakistan (SBP) on Friday.


In September 2016, the country’s total external debt and liabilities were $75.8 billion that increased by another $9.3 billion, showed the central bank data. The figures are exclusive of $2.5 billion Pakistan obtained last month by floating two sovereign bonds.

The SBP’s external debt bulletin release coincides with the depreciation of the Pakistani rupee against the US dollar. The local currency shed its value by about 4.8%, standing at Rs110.54 to the dollar on Friday.

How the currency markets are viewing Dar’s indictment

The external debt and liabilities figures have been released till the period of September 2017 when the value of rupee to a dollar was Rs105.40. Due to the depreciation, Pakistan will require an additional Rs436 billion to service the same amount of debt.

At Rs105.40 to a dollar, external debt and liabilities were equal to Rs8.964 trillion that, due to the depreciation, have increased to Rs9.4 trillion.

Although a weaker rupee had long been predicted due to a weakening position of the external sector, independent economists had warned the government about the implications of exchange rate adjustments. They had said that Pakistan was sitting on explosive mines, as the day it would let the rupee touch its actual value against the US dollar, the country’s external debt would grow.

Auto part makers concerned over rupee’s strength – and its weakness

Former finance secretary Dr Waqar Masood had called on the government to adjust the fiscal deficit target after taking into account the implications of the increase in external debt servicing cost due to rupee depreciation.

The rupee is expected to further shed value in the coming months, as the external sector fundamentals remain weak. The SBP governor said this week that after the recent adjustments the rupee-dollar parity was now closer to the equilibrium.

IMF’s Mission Chief to Pakistan Harald Finger on Thursday said that Pakistan’s external sector and its international reserves would continue to remain under pressure in the coming months.

Out of $85 billion, public external debt including debt and liabilities of the public sector enterprises stood at $70.3 billion by September this year. These were $5 billion higher than a year ago.

The share of the public external debt was $67 billion – higher by $4.6 billion or 7.4% in one year. The public sector enterprises debt increased to $3 billion – also higher by 7.7%.

The debt signed by banks grew phenomenally by 68% to roughly $5 billion in just one year. Out of this, the short-term debt contracted by the banks increased from $1.9 billion a year ago to $3.8 billion by September this year.

The country spent $2.1 billion on repayment of external debt and interest on it during the first quarter (July-September) of this fiscal year, according to the SBP. The figure suggests that like the previous fiscal year, this year again, the overall cost of external debt servicing will remain high.

The cost of public external debt servicing stood at $1.64 billion. The principal loans repayment by the public sector stood at $1.34 billion in just three months. The cost of interest payments increased to $300 million in the first quarter.

The private sector debt servicing cost amounted to $304 million including interest payments.

Published in The Express Tribune, December 16th, 2017.

https://tribune.com.pk/story/1585327/2-pakistans-external-debt-liabilities-increase-12-3-85b/

Add 2.5 billion ( eurobond/sukuk)+ 1.1 billion ( commercial loans) taken after September 2017. The total debt is 89 billion dollars as of now and should cross 100 billion dollars by June 2018 and more loans will be taken to retire about 5 billion dollars of older debt.

 

[SunilM]

Pakistan's net public debt reaches to all-time high of Rs25280 bn

Pakistan’s net public debt has piled up to whooping Rs25820 billion mark with Rs11500 billion added only in four-year tenure of incumbent Pakistan Muslim League Nawaz’s (PMLN) government.

As per documents available with State Bank of Pakistan (SBP), the volume of the national loans has augmented to Rs16200 billion while that of foreign loans has soared to Rs9000 billion.

The volume of overall loans—when PMLN govt took power back then in 2013—was Rs14318 billion. During its four years and three months tenure, the party which made tall claims of breaking the begging bowl added mammoth Rs6500 bn to volume of national loans and Rs5000 billion to volume of foreign loans, thus overall figure of loan taken by current govt stands at Rs11500 billion.

It is pertinent to mention that Musharraf-led federal govt took Rs3200 bn loan during its eight-year tenure while Zardari-led Pakistan Peoples Party govt added Rs8000 bn to overall loan volume.

The law compels that volume of loan should not exceed 60pc of Gross Domestic Product (GDP) but the loans have crossed over 65pc of GDP at present.

http://dunyanews.tv/en/Business/419...c-debt-reaches-to-all-time-high-of-Rs25280-bn

This is when that crook Ishaq Dar has amended the definition of DEBT. Its easily between 75-80% of the GDP. Somebody needs to raise the ALARM NOW.


Pakistan repays IDB $137m on its refusal to grant rollover

ISLAMABAD: After refusal of the Islamic Development Bank (IDB) to grant another rollover on short term commodity financing, Pakistan on Friday made repayments of $137 million loan to the IDB by fulfilling its external obligations.

Pakistan had obtained this short term facility in the shape of loans to finance imports of petroleum products. The IDB has already disbursed around one billion dollars in shape of loans for commodity financing and rollover of loans from July to first half of December 2017 during the current fiscal year.

“Pakistan made efforts to get another rollover on account of $137 million loan from the IDB, but the Bank politely refused to grant another extension knowingly that Islamabad had recently generated $2.5 billion from international markets through the launch of Sukuk and Eurobonds,” said one top official of the Finance Division while talking to The News here on Friday. Pakistan has obtained most of these loans through the rollover ITFC of the IDB.

The International Islamic Trade Finance Corporation (ITFC) is an autonomous entity within the Islamic Development Bank Group created with the purpose of advancing trade to improve the economic condition and livelihood of people across the Islamic world.

The ITFC has consolidated all the trade finance businesses that used to be handled by various windows within the IDB Group. It commenced operations in January 2008. Another top official of the Finance Division told The News in background discussions on Friday that the Ministry of Finance held important meeting with Economic Affairs Division (EAD) and representatives of the provinces in order to gear up efforts for maximising disbursements in shape of loans and grants from multilateral and bilateral creditors during the second half (Jan-June) period of the current fiscal year.

“Our current account projections will depend on multiple factors, including making efforts to maximise dollar inflows from the donors in the remaining period of the current fiscal, and it cannot be achieved without geared efforts from EAD and provinces in order to achieve deliverables on accounts of timely implementation on donor funded development projects,” said the official.

Pakistan’s total foreign currency stood at $20.68 billion on December 8, 2017, after receiving $2.5 billion inflows in that week. The foreign reserves held by the State Bank of Pakistan were standing at $14.66 billion while the reserves of commercial banks were $6.02 billion. According to the SBP, on the week ending December 8,2017, The SBP’s reserves increased by $2.006 billion and touched $14.666 billion.

“The change in reserves was due to proceeds from Pakistan International Bonds and Pakistan International Bonds and payments on account of external debt servicing and other official outflows,” the SBP further stated.

The economists and analysts are apprehending rising current account deficit in the current fiscal year as it had already crossed $5 billion mark in first five months of FY2018, forcing the central bank to allow depreciation of rupee against all other currencies.

Although, the IMF has declared it as welcome move which was long overdue, but many independent experts are criticising it on various grounds. Zafar Sheikh, former DG Debt Office, Ministry of Finance, told this scribe that rising trade deficit remained core issue but could be cured or at least its financial damage could be reduced through various methods.

He said that entire trade deficit did not occur in single week or month, but it accumulated during the whole financial year with both positive as well as negative inflows from all avenues. “As overall net importer, the country’s central bank (SBP) got every right to manage exchange rate based on positive and negative cash flows of course containing speculations on both ways not abruptly in one direction but taking decision purely on merit on the basis of emerging situation,” he added. He proposed slapping immediate ban on import of consumer goods and luxury items and promote exports in a big way.

https://www.thenews.com.pk/print/256683-pakistan-repays-idb-137m-on-its-refusal-to-grant-rollover

 

[bête noire]

What are IND PK and BD's debt to GDP ratio currently?

 

[DarX]

ISLAMABAD:

Amid a weakening currency that has increased the cost of debt servicing, Pakistan’s external debt and liabilities have mounted to $85 billion by September-end this year – a year-on-year increase of 12.3%, reported the State Bank of Pakistan (SBP) on Friday.


In September 2016, the country’s total external debt and liabilities were $75.8 billion that increased by another $9.3 billion, showed the central bank data. The figures are exclusive of $2.5 billion Pakistan obtained last month by floating two sovereign bonds.

The SBP’s external debt bulletin release coincides with the depreciation of the Pakistani rupee against the US dollar. The local currency shed its value by about 4.8%, standing at Rs110.54 to the dollar on Friday.

How the currency markets are viewing Dar’s indictment

The external debt and liabilities figures have been released till the period of September 2017 when the value of rupee to a dollar was Rs105.40. Due to the depreciation, Pakistan will require an additional Rs436 billion to service the same amount of debt.

At Rs105.40 to a dollar, external debt and liabilities were equal to Rs8.964 trillion that, due to the depreciation, have increased to Rs9.4 trillion.

Although a weaker rupee had long been predicted due to a weakening position of the external sector, independent economists had warned the government about the implications of exchange rate adjustments. They had said that Pakistan was sitting on explosive mines, as the day it would let the rupee touch its actual value against the US dollar, the country’s external debt would grow.

Auto part makers concerned over rupee’s strength – and its weakness

Former finance secretary Dr Waqar Masood had called on the government to adjust the fiscal deficit target after taking into account the implications of the increase in external debt servicing cost due to rupee depreciation.

The rupee is expected to further shed value in the coming months, as the external sector fundamentals remain weak. The SBP governor said this week that after the recent adjustments the rupee-dollar parity was now closer to the equilibrium.

IMF’s Mission Chief to Pakistan Harald Finger on Thursday said that Pakistan’s external sector and its international reserves would continue to remain under pressure in the coming months.

Out of $85 billion, public external debt including debt and liabilities of the public sector enterprises stood at $70.3 billion by September this year. These were $5 billion higher than a year ago.

The share of the public external debt was $67 billion – higher by $4.6 billion or 7.4% in one year. The public sector enterprises debt increased to $3 billion – also higher by 7.7%.

The debt signed by banks grew phenomenally by 68% to roughly $5 billion in just one year. Out of this, the short-term debt contracted by the banks increased from $1.9 billion a year ago to $3.8 billion by September this year.

The country spent $2.1 billion on repayment of external debt and interest on it during the first quarter (July-September) of this fiscal year, according to the SBP. The figure suggests that like the previous fiscal year, this year again, the overall cost of external debt servicing will remain high.

The cost of public external debt servicing stood at $1.64 billion. The principal loans repayment by the public sector stood at $1.34 billion in just three months. The cost of interest payments increased to $300 million in the first quarter.

The private sector debt servicing cost amounted to $304 million including interest payments.

Published in The Express Tribune, December 16th, 2017.

https://tribune.com.pk/story/1585327/2-pakistans-external-debt-liabilities-increase-12-3-85b/

Add 2.5 billion ( eurobond/sukuk)+ 1.1 billion ( commercial loans) taken after September 2017. The total debt is 89 billion dollars as of now and should cross 100 billion dollars by June 2018 and more loans will be taken to retire about 5 billion dollars of older debt.

Pakistan's net public debt reaches to all-time high of Rs25280 bn

Pakistan’s net public debt has piled up to whooping Rs25820 billion mark with Rs11500 billion added only in four-year tenure of incumbent Pakistan Muslim League Nawaz’s (PMLN) government.

As per documents available with State Bank of Pakistan (SBP), the volume of the national loans has augmented to Rs16200 billion while that of foreign loans has soared to Rs9000 billion.

The volume of overall loans—when PMLN govt took power back then in 2013—was Rs14318 billion. During its four years and three months tenure, the party which made tall claims of breaking the begging bowl added mammoth Rs6500 bn to volume of national loans and Rs5000 billion to volume of foreign loans, thus overall figure of loan taken by current govt stands at Rs11500 billion.

It is pertinent to mention that Musharraf-led federal govt took Rs3200 bn loan during its eight-year tenure while Zardari-led Pakistan Peoples Party govt added Rs8000 bn to overall loan volume.

The law compels that volume of loan should not exceed 60pc of Gross Domestic Product (GDP) but the loans have crossed over 65pc of GDP at present.

http://dunyanews.tv/en/Business/419363-Pakistan’s-net-public-debt-reaches-to-all-time-high-of-Rs25280-bn

This is when that crook Ishaq Dar has amended the definition of DEBT. Its easily between 75-80% of the GDP. Somebody needs to raise the ALARM NOW.


Pakistan repays IDB $137m on its refusal to grant rollover

ISLAMABAD: After refusal of the Islamic Development Bank (IDB) to grant another rollover on short term commodity financing, Pakistan on Friday made repayments of $137 million loan to the IDB by fulfilling its external obligations.

Pakistan had obtained this short term facility in the shape of loans to finance imports of petroleum products. The IDB has already disbursed around one billion dollars in shape of loans for commodity financing and rollover of loans from July to first half of December 2017 during the current fiscal year.

“Pakistan made efforts to get another rollover on account of $137 million loan from the IDB, but the Bank politely refused to grant another extension knowingly that Islamabad had recently generated $2.5 billion from international markets through the launch of Sukuk and Eurobonds,” said one top official of the Finance Division while talking to The News here on Friday. Pakistan has obtained most of these loans through the rollover ITFC of the IDB.

The International Islamic Trade Finance Corporation (ITFC) is an autonomous entity within the Islamic Development Bank Group created with the purpose of advancing trade to improve the economic condition and livelihood of people across the Islamic world.

The ITFC has consolidated all the trade finance businesses that used to be handled by various windows within the IDB Group. It commenced operations in January 2008. Another top official of the Finance Division told The News in background discussions on Friday that the Ministry of Finance held important meeting with Economic Affairs Division (EAD) and representatives of the provinces in order to gear up efforts for maximising disbursements in shape of loans and grants from multilateral and bilateral creditors during the second half (Jan-June) period of the current fiscal year.

“Our current account projections will depend on multiple factors, including making efforts to maximise dollar inflows from the donors in the remaining period of the current fiscal, and it cannot be achieved without geared efforts from EAD and provinces in order to achieve deliverables on accounts of timely implementation on donor funded development projects,” said the official.

Pakistan’s total foreign currency stood at $20.68 billion on December 8, 2017, after receiving $2.5 billion inflows in that week. The foreign reserves held by the State Bank of Pakistan were standing at $14.66 billion while the reserves of commercial banks were $6.02 billion. According to the SBP, on the week ending December 8,2017, The SBP’s reserves increased by $2.006 billion and touched $14.666 billion.

“The change in reserves was due to proceeds from Pakistan International Bonds and Pakistan International Bonds and payments on account of external debt servicing and other official outflows,” the SBP further stated.

The economists and analysts are apprehending rising current account deficit in the current fiscal year as it had already crossed $5 billion mark in first five months of FY2018, forcing the central bank to allow depreciation of rupee against all other currencies.

Although, the IMF has declared it as welcome move which was long overdue, but many independent experts are criticising it on various grounds. Zafar Sheikh, former DG Debt Office, Ministry of Finance, told this scribe that rising trade deficit remained core issue but could be cured or at least its financial damage could be reduced through various methods.

He said that entire trade deficit did not occur in single week or month, but it accumulated during the whole financial year with both positive as well as negative inflows from all avenues. “As overall net importer, the country’s central bank (SBP) got every right to manage exchange rate based on positive and negative cash flows of course containing speculations on both ways not abruptly in one direction but taking decision purely on merit on the basis of emerging situation,” he added. He proposed slapping immediate ban on import of consumer goods and luxury items and promote exports in a big way.

https://www.thenews.com.pk/print/256683-pakistan-repays-idb-137m-on-its-refusal-to-grant-rollover

In macro-economics, positive and negative changes occur over decades and not years. All of this happened because of the mismanagement of the past 2 decades. The industries progressively shut down due to lack of power and imports have soared. Now that the CPEC project is well underway, with all the power and connectivity projects, the positive effects will manifest over the next decade.

I would suggest that Indians should look more closely at how India is being run right now. While Pakistan invests in motorways, Modi is buffeting India with blunders like demonetization and incompetent GST reforms. Pakistan is rationalizing its armed forces, while India is on a spending spree, which is directly at the expense of infrastructure investment.

 

[SunilM]

CPEC. The Panacea.

 

[4GTejasBVR]

In macro-economics, positive and negative changes occur over decades and not years. All of this happened because of the mismanagement of the past 2 decades. The industries progressively shut down due to lack of power and imports have soared. Now that the CPEC project is well underway, with all the power and connectivity projects, the positive effects will manifest over the next decade.

I would suggest that Indians should look more closely at how India is being run right now. While Pakistan invests in motorways, Modi is buffeting India with blunders like demonetization and incompetent GST reforms. Pakistan is rationalizing its armed forces, while India is on a spending spree, which is directly at the expense of infrastructure investment.

In what world the spending spree is sign of slow economy for future. All we spend will be put into national manufacturing and Rand D sector atleast 30 % of them...

Pakistan is investing in infrastructure but not India? Dude just check hoe many km roads, railways electricity lines constructed per day and also new infrastructures beenplanned and get executed. India is huge dude. Seperate states have their own plans while each district in a state do their own thing in laying down roads and schemes.

You rightly pointed out that Pakistan industries are shutting down due to more imports but problem is you seeing CPEC as remedy. While CPEC is remedies of all Pakistan problems as per you fan boysz. The core issue is the whole China thing. Your industries large or small scale cant or won't stand a chance against China. Which is manufacturing in exceed of their domestic consumption. Insteed of shutting down they will make dead cheap deals cheaper than cheap chinese average price to dump it with profit. This is where CPEC and OBOR initiative comes in. Thats a clever strategy by china. Even when u dont have money to purchase their goods at that quantity, they comes in with billions of dollar loans ...
Doing so. For China = Export + continued labour + money lend for profit + control over the country eho geys loans.

For Pakistan? You have to pay China for the next century + lose industries at home + depended on China. Good luck with that as you will say. Ok Indians! Look with in ur poor people. Well our population may be poor but India as a country is not. Which is more than enough to create changes in billions of people.

Got my point buddy?

Yes changes in macro economy will occurs in decades not years... Ok well said. Issue could be future of ue growth story is very slom amd dim with death
Trap or dept trap 85 billion + CPEC 60 bi
billion (future)...

 

[bananarepublic]

In what world the spending spree is sign of slow economy for future. All we spend will be put into national manufacturing and Rand D sector atleast 30 % of them...

Pakistan is investing in infrastructure but not India? Dude just check hoe many km roads, railways electricity lines constructed per day and also new infrastructures beenplanned and get executed. India is huge dude. Seperate states have their own plans while each district in a state do their own thing in laying down roads and schemes.

You rightly pointed out that Pakistan industries are shutting down due to more imports but problem is you seeing CPEC as remedy. While CPEC is remedies of all Pakistan problems as per you fan boysz. The core issue is the whole China thing. Your industries large or small scale cant or won't stand a chance against China. Which is manufacturing in exceed of their domestic consumption. Insteed of shutting down they will make dead cheap deals cheaper than cheap chinese average price to dump it with profit. This is where CPEC and OBOR initiative comes in. Thats a clever strategy by china. Even when u dont have money to purchase their goods at that quantity, they comes in with billions of dollar loans ...
Doing so. For China = Export + continued labour + money lend for profit + control over the country eho geys loans.

For Pakistan? You have to pay China for the next century + lose industries at home + depended on China. Good luck with that as you will say. Ok Indians! Look with in ur poor people. Well our population may be poor but India as a country is not. Which is more than enough to create changes in billions of people.

Got my point buddy?

Yes changes in macro economy will occurs in decades not years... Ok well said. Issue could be future of ue growth story is very slom amd dim with death
Trap or dept trap 85 billion + CPEC 60 bi
billion (future)...

Actually it's good for you guys that we might go into a debt trap .. so why so much whining...

People should remember that Pakistans debt in 1999 was around 30 billion dollars
It's highest was 87 percent and we managed just fine ..
The real problem is Indians on this forum

 

[DarX]

In what world the spending spree is sign of slow economy for future. All we spend will be put into national manufacturing and Rand D sector atleast 30 % of them.

I was pointing to the spending spree of India on imported weapons. For a country which is the world leader in E.coli, a disease caused be fecal infused drinking water, purchasing $280 million C-17 Globemasters while keeping its unairworthy IL-76 in operations seems to be quite a stupid spending spree.

Pakistan is investing in infrastructure but not India? Dude just check hoe many km roads, railways electricity lines constructed per day and also new infrastructures beenplanned and get executed. India is huge dude. Seperate states have their own plans while each district in a state do their own thing in laying down roads and schemes.

Modi is only making up figures and fudging the definition of economic development. Check out this article from Bloomberg which might wake you up from your day dream.

https://www.bloomberg.com/news/feat...-dark-240-million-indians-have-no-electricity

You rightly pointed out that Pakistan industries are shutting down due to more imports but problem is you seeing CPEC as remedy. While CPEC is remedies of all Pakistan problems as per you fan boysz. The core issue is the whole China thing. Your industries large or small scale cant or won't stand a chance against China. Which is manufacturing in exceed of their domestic consumption. Insteed of shutting down they will make dead cheap deals cheaper than cheap chinese average price to dump it with profit. This is where CPEC and OBOR initiative comes in. Thats a clever strategy by china. Even when u dont have money to purchase their goods at that quantity, they comes in with billions of dollar loans ...
Doing so. For China = Export + continued labour + money lend for profit + control over the country eho geys loans.

I never said that the industry in Pakistan shut down because of imports. It happened because Musharaf and PPP avoided investing in infrastructure just because these projects only bring benefits later and so they pursued policies to satisfy their own short term agenda.

The problem (or rather the great advantage for Pakistan) is that Indian day dreamers like you don't understand economics. It is a fact of the world that countries will specialize in their own specific areas. If China can manufacture stuff cheaply, that means we should adapt to trade with them. There are multiple strategies including Pakistan becoming a trading hub for China through its western exit. This is the same model as that followed by Hong Kong, Singapore and Dubai. Pakistan has the added benefit of fertile lands which will be developed to increase production which can be traded with China and later some production can be shifted to Pakistan because China is going through wage inflation. SEZ's are being set up and institutions for skills such as agriculture are being set up for tech transfer. The CPEC is much more than just loans for power plants and roads.

For Pakistan? You have to pay China for the next century + lose industries at home + depended on China. Good luck with that as you will say. Ok Indians! Look with in ur poor people. Well our population may be poor but India as a country is not. Which is more than enough to create changes in billions of people.

Got my point buddy?

Yes changes in macro economy will occurs in decades not years... Ok well said. Issue could be future of ue growth story is very slom amd dim with death
Trap or dept trap 85 billion + CPEC 60 bi
billion (future)...

As an informed person, I see no issues in the financing aspect of the CPEC. It is being structured as loans so that it ensures that the money is spent in a disciplined manner. There is no proof that this is being done with a malicious intent and in any case, there is no reason why China would want to torpedo its flagship project of the BRI by forcing the default of its most important ally.

Got my point buddy?

Yes changes in macro economy will occurs in decades not years... Ok well said. Issue could be future of ue growth story is very slom amd dim with death
Trap or dept trap 85 billion + CPEC 60 bi
billion (future)...

Haha. I wonder why Indians think that the CPEC money will be spent and will not produce any change. Whenever investments are made in public projects, they yield an exponential return by creating economic activity. That is what is being targeted through CPEC. All you see with glee is the loan amount. The power shortage of Pakistan has been all but eradicated. Most of the roads are nearing completion. Just as the power shut down damaged the industry of Pakistan, the return of power is ensuring new growth. This happens while Modi castrates India with demonetization.

Actually it's good for you guys that we might go into a debt trap .. so why so much whining...

People should remember that Pakistans debt in 1999 was around 30 billion dollars
It's highest was 87 percent and we managed just fine ..
The real problem is Indians on this forum

They are whining because deep down they are afraid of the development of the CPEC.

 

[itachii]

Modi is only making up figures and fudging the definition of economic development. Check out this article from Bloomberg which might wake you up from your day dream.

https://www.bloomberg.com/news/feat...-dark-240-million-indians-have-no-electricity

Modi government has started addressing this problem. As soon as they came in to power they made a commitment to electrify every village and household in India by 2019 and created a portal which is updated every week for real time tracking, any individual can see the progress the govt is making.

http://garv.gov.in/dashboard

 

[4GTejasBVR]

Actually it's good for you guys that we might go into a debt trap .. so why so much whining...

People should remember that Pakistans debt in 1999 was around 30 billion dollars
It's highest was 87 percent and we managed just fine ..
The real problem is Indians on this forum

How u came to the conclusion that u managed? Read the article above

I was pointing to the spending spree of India on imported weapons. For a country which is the world leader in E.coli, a disease caused be fecal infused drinking water, purchasing $280 million C-17 Globemasters while keeping its unairworthy IL-76 in operations seems to be quite a stupid spending spree.



Modi is only making up figures and fudging the definition of economic development. Check out this article from Bloomberg which might wake you up from your day dream.

https://www.bloomberg.com/news/feat...-dark-240-million-indians-have-no-electricity



I never said that the industry in Pakistan shut down because of imports. It happened because Musharaf and PPP avoided investing in infrastructure just because these projects only bring benefits later and so they pursued policies to satisfy their own short term agenda.

The problem (or rather the great advantage for Pakistan) is that Indian day dreamers like you don't understand economics. It is a fact of the world that countries will specialize in their own specific areas. If China can manufacture stuff cheaply, that means we should adapt to trade with them. There are multiple strategies including Pakistan becoming a trading hub for China through its western exit. This is the same model as that followed by Hong Kong, Singapore and Dubai. Pakistan has the added benefit of fertile lands which will be developed to increase production which can be traded with China and later some production can be shifted to Pakistan because China is going through wage inflation. SEZ's are being set up and institutions for skills such as agriculture are being set up for tech transfer. The CPEC is much more than just loans for power plants and roads.



As an informed person, I see no issues in the financing aspect of the CPEC. It is being structured as loans so that it ensures that the money is spent in a disciplined manner. There is no proof that this is being done with a malicious intent and in any case, there is no reason why China would want to torpedo its flagship project of the BRI by forcing the default of its most important ally.

Got my point buddy?



Haha. I wonder why Indians think that the CPEC money will be spent and will not produce any change. Whenever investments are made in public projects, they yield an exponential return by creating economic activity. That is what is being targeted through CPEC. All you see with glee is the loan amount. The power shortage of Pakistan has been all but eradicated. Most of the roads are nearing completion. Just as the power shut down damaged the industry of Pakistan, the return of power is ensuring new growth. This happens while Modi castrates India with demonetization.



They are whining because deep down they are afraid of the development of the CPEC.

Dude we are 2 trillion dollars economy already with 400 billion as foreign reserves. So yes we can spend another 200 billion for imports of weapons incase of war. And wont go broke like 5 billion yearly deficit like ur country.

Modi is doing great for Indians. 240 million people dint have electricity for many decades. Modi dint cut the fuse for ur information

Keep hoping on CPEC. Now entire Pakistan's future depends upon someone's lending not Pakistan's industries. Good job? I wonder how can u be so cool about it.

U earn 100 rupees u have loan of 105 rupees to pay? And add that most if ur properties are already kept in several banks for 1 lac rupees loan... Will u be hoping on me if i promise you to lend another 80,000 rupees?

Are u ok bro?

 

[somebozo]

It is pertinent to mention that Musharraf-led federal govt took Rs3200 bn loan during its eight-year tenure while Zardari-led Pakistan Peoples Party govt added Rs8000 bn to overall loan volume.

Difference between dictatorship and democracy in Pakistan has always been such sad tale..

 

[BATMAN]

Difference between dictatorship and democracy in Pakistan has always been such sad tale..

All those who are with Imran Khan are no different... they make new party because they want there share of corruption.
All of Imran Khan's party is bunch of selfish thugs. Anyone who is not given ticket by Nawaz Sharif and Zardari joins PTI.

 

[somebozo]

All those who are with Imran Khan are no indifferent... they make new party because they want there share of corruption.
All of Imran Khan's party is bunch of selfish thugs. Anyone who is not given ticket by Nawaz Sharif and Zardari joins PTI.

Imran will prove to be another bhutto and worst disaster to ever happen to this country..he must be disqualified the sooner the better..

 

[BATMAN]

Imran will prove to be another bhutto and worst disaster to ever happen to this country..he must be disqualified the sooner the better..

Exactly... I must say worst than Bhutto because Bhutto was a clever man and Imran Khan is idiot, and has ambiguous connection with UK.

 

[Mrc]

What are IND PK and BD's debt to GDP ratio currently?

Same or similar