Pakistan’s external debt, liabilities shoot to record at $96.7b

[N.Siddiqui]

GDP is not very useful as denominator (esp if you are developing country and have vast unaccounted production and liquidity sources) if you know how actual loan works on international market (and credit ratings based on that). Please refer to my earlier post I just made.

No sovereign or wealth fund for emerging markets simply goes by GDP figure of a developing country when indexing for example (given the GDP measurements are not qualitatively the same among them to begin with). They look at how much accessible liquidity there actually is.....there are many indicators for it....total market cap is just correlated to very many of them.

'cause of its fluid nature market cap is never taken as bench mark for any economical indicator specially related to payment of national debt. With lots of speculations, free fall of stocks, bullish and bearish sentiments, lack of registered companies...

 

[Mage]

GDP is not really that great a denominator to use...since its basically mostly production/consumption...i.e stuff you really will not forego to borrow on that easily (though it does have more utility once you have developed markets)....though savings rate/GCF (since that is indeed consumption foregone for investment) offers some flexibility in the analysis of GDP as the denominator.

More apt denominator is market cap (since thats a physical indication of how much easily accessible net worth there is in the country) and also total wealth estimates etc (that isnt as relevant given much more serious things would have to be liquidated to get that).

Companies listed in stock exchange varies from country to country..
For India it's like 90%....I wonder how it went that high...looking at WB data it seems India's percentage is way higher compared to it's economy size.
https://data.worldbank.org/indicator/CM.MKT.LCAP.GD.ZS?locations=PK-IN-VN-CN&view=chart

For China it's like 70%...Pakistan 30%...BD around Pakistan's level.
And Vietnam is 5%? I don't know how this is possible.

 

[Śakra]

correct your figures Pakistan economy is more than 313.1 billion $ so the equation 313.13/91.7=29%

After our recent devaluation your economy is ~210 billion. It could breach <200 depending on how your currency performs in the coming weeks/months/years

 

[Death Professor]

Indian economy is 2.5 TRILLION (2500 billion) USD while your's is 200 billion. 100/200= 50% GDP debt while 500/2500=20% debt. Basic math, learn it.

hahahaha.

 

[Śakra]

And there is a huge informal undocumented economy which can easily be as big as the formal economy and this is a 2013 figure by DAWN, much higher now can top 550 to 600 billion USD nominal.


'This is substantially larger than previous estimates of between 30 per cent to 50 per cent (albeit using different methodologies). If correct, this implies that the overall size of Pakistan’s economy, both reported as well as unreported, is around $420 billion, with private consumption at current prices amounting to a whopping $365bn in 2012 (which would explain the consumption “conundrum” I have written about previously)'.


https://www.dawn.com/news/787833

@Nilgiri the infamous "but wait the shadow economy" excuse.

 

[Death Professor]

After our recent devaluation your economy is ~210 billion. It could breach <200 depending on how your currency performs in the coming weeks/months/years

 

[N.Siddiqui]

After our recent devaluation your economy is ~210 billion. It could breach <200 depending on how your currency performs in the coming weeks/months/years

Lol..and Mumbai GDP is higher than Pakistan economy.

 

[Norwegian]

Again that's not what he said yesterday in his press meet. He also said State bank didn't consult with him or he would have advised them not to do it. Although the finance minister said the state bank did inform the ministry. It's just lies, lies and more lies in this regime!

LOL. When Ishaq Dollar your PMLN Finance Minister said in parliament and in writing that 200 billion dollars of Pakistani money is stashed abroad, was it not lies? The real amount is nowhere near that.
Its possible Imran Khan was not informed directly but Asad Umar was informed by SBP.

 

[Death Professor]

Nah, you are...

Lol, market cap, KSE doesn't even show half of Pakistan's market. Well we sometimes forget India has 1.34 billion to feed while Pakistan only has 210 m. I am not comparing India vs Pakistan, I am just saying those with glass houses, do not throw stones at other peoples houses. Now if your counter argument is, well you don't have a glass house, then your are simply delusional.

Tell me India's balance of trade(Import Export diff), tell me India's GDP per capita(nominal) or even PPP( i don't mind but you have to specify), tell me India's wealth distribution. Don't answer these, these are all rhetorical questions aimed for a reason. And the reason is those with glass houses shouldn't throw stones. It's basically to negate the narrative the OP want's to build.

may be I should bold all my comments.

 

[Canuck786]

LOL. When Ishaq Dollar your PMLN Finance Minister said in parliament and in writing that 200 billion dollars of Pakistani money is stashed abroad, was it not lies? The real amount is nowhere near that.
Its possible Imran Khan was not informed directly but Asad Umar was informed by SBP.

Is this Ishaq Dar?

 

[Norwegian]

Is this Ishaq Dar?

OMG how sick are you PATWARIS? The original claim was made by ISHAQ DOLLAR and on floor of the house that 200 billion dollars are stashed abroad by Pakistanis. PTI said it would bring back that money. When they came in power, they found that figure was a total lie. Instead of blaming KHOTA ISHAQ DOLLAR for a deliberate lie, you guys are blaming PTI.
$200bn of Pakistan in Swiss banks: Dar

 

[Death Professor]

Lol..and Mumbai GDP is higher than Pakistan economy.

konsay assman pe ye puhncha hva hai? Iss ko koi zameen pe lay k aye...

 

[Nilgiri]

Companies listed in stock exchange varies from country to country..
For India it's like 90%....I wonder how it went that high...looking at WB data it seems India's percentage is way higher compared to it's economy size.
https://data.worldbank.org/indicator/CM.MKT.LCAP.GD.ZS?locations=PK-IN-VN-CN&view=chart

For China it's like 70%...Pakistan 30%...BD around Pakistan's level.
And Vietnam is 5%? I don't know how this is possible.

There is a vibrant financial sector in India that provides a good credit network (not great...but good enough given India per capita income). The current admin and also last cpl ones really expanded some reforms in this as well (to say SMEs, village industries and NBFCs...and the bank account formalisation/access program etc) that provide much incentive to get listed and traded (i.e on the books) under larger aegis. Grameen micro-credit is good, but BD needs to do lot lot more at all scales and routes.

It is why I have been harping on that BD should fix fix fix its finance/banking sector....it really is the critical engine like nothing else to take to another level of output (and presence/contact/demand/pressure for foreign liquidity/hedging as well). Same applies to Pakistan too. When you have more people participating and trading....the govt+ large corporates also has to compete more to provide for them (rather than just themselves i.e big wigs).

 

[Sam.]

You guys dont understand do u? Its not about the quantity of debt, its about the paying capacity. You are comparing a nation with 94bn loan asking for a bailout of 11bn against a nation with 2.4tn gdp and over 400bn forex having 500bn loan. latter clearly has the paying capacity, former doesnt.
thats the problem.

$2.848 trillion (nominal; 2018 est) $10.385 trillion (PPP; 2018 est)

Corrected.

 

[SunilM]

Is this Ishaq Dar?

Yeah, as they say a Video is worth more than a thousand denials.