Pakistan's first sovereign debt default

[longbrained]

But why is there no news and highlights like Spain or other countries.

What does default really mean?

Sorry, I hate economics.

Looks like our foreign policy, internal policy, monetary policy, population policy (if we have one), everything is just being put aside, and the government is just hell bent on corruption and saving Gilani's ars*.

Because we are not in the same league as Spain in economic power. If we default completely no one else in the world is going to suffer because of it. The down side is that no body is going to bail us out either unlike Greece or Spain if ever things come to that. That means only one way out, printing more money which means the loss of value of Rupee which means inflation.

 

[Jango]

It is another record that will be written for PPP. Today the shameless minister of power has announced in a press release that the nation has to brace for more load shedding than ever before since it is now May but the shortfall has crossed 6000 MW which means the hot summer is going to be hellish. Shortage of power is killing the industries and wreaking havoc with people's lives and now this financial shock which will only make it more difficult to invest in Pakistan.

Yesterday, it was 8 hours continuously in DHA.

Because we are not in the same league as Spain in economic power. If we default completely no one else in the world is going to suffer because of it. The down side is that no body is going to bail us out either unlike Greece or Spain if ever things come to that. That means only one way out, printing more money which means the loss of value of Rupee which means inflation.

In short, we are fukced!!!

 

[lem34]

You should read a little story by Sir SYed Ahmed, in Urdu titled, apni madad aap.

In that it says, hamesha government kaum jaisi hoti hai, kabhi bhi kaum government jaisi nhn hoti. Aur kaum government ko peechay lay ati hai, chahay government kitni hi achi ho. Aur agr kaum aala ikhlaq ki ho, to government ko bhi apnay saath agay khainch lati hai.

He did not say wrong!

people vote just because, o ji mujh say waada kiya tha seth nay, main tumharay bachay ko naukri dun ga, aur yeh woh etc etc. Sometimes, people just don't use their brains before voting!!!

Mate my argument is that democracy is not the best form of governance for Pakistan until we educate our masses. In any event I think PPP only got 3 million votes

 

[longbrained]

Yesterday, it was 8 hours continuously in DHA.

Well as per minister, get ready for more. It is so shameful.

 

[fd24]

Fully agree. It is shameful. The whole nation's credit rating now will be downgraded. We will have to pay more interest on all loans and business confidence will go down plus foreign investors will get scared. Not a good sign at all.

and thats the issue. If we cant attract foreign investment we are on slippery ground. You probably think im joking but im not when i say the leaders should be rounded up and locked up or even better exterminated. For the nation to default or in their case allow the situation to get this bad is truly disgraceful. How does Zardari walk around with his head held high when he has systematically raped the government coffers - begerath....

 

[longbrained]

We must be the only country in the world when we allow a known criminal to be made President.

Let's hope things are going to be different in upcoming election.

 

[King Solomon]

I'd anticipated something like this after studying pakistan's official report a few month ago.. see my posts here

http://www.defence.pk/forums/econom...ees-pakistan-s-economy-resilient-growing.html

 

[longbrained]

and thats the issue. If we cant attract foreign investment we are on slippery ground. You probably think im joking but im not when i say the leaders should be rounded up and locked up or even better exterminated. For the nation to default or in their case allow the situation to get this bad is truly disgraceful. How does Zardari walk around with his head held high when he has systematically raped the government coffers - begerath....

I fully agree. We have some serious thinking to do. There is shortage of gas and electricity. Now the financial things are going haywire too. Things are not looking bright. And worse even if an honest government comes to power it will take years of hard work to correct all this. Will people wait more? Will they keep their trust?

 

[longbrained]

In short, we are fukced!!!

Well I would not use the exact word but yes we are in deep trouble. This will have far reaching effects for our economy into future. It means that from now on people will not trust us with money and our government guarantees will not be taken seriously. We did not even default on even a single rupee in 1971 after a devastating war or even in 1998 sanctions.

 

[Zeeshan360]

What do U mean by default ??

 

[longbrained]

What do U mean by default ??

Use a dictionary.

 

[somebozo]

Another feather in the crown of P1ss Poor Party! (PPP)

 

[Shardul.....the lion]

I would like to say Pakistanis as a nation should not get depressed because just two decades ago in 1991 India was close to a default.

So every nation has ups and downs, but citizens should be resilient and lift the nation towards prosperity.

 

[AgNoStiC MuSliM]

Do we need any more evidence that the PPP government's RPP scheme was nothing but an attempt to mint money?

The money given to the RPP's could have been used to pay off the IPP debt ...

 

[fd24]

Do we need any more evidence that the PPP government's RPP scheme was nothing but an attempt to mint money?

The money given to the RPP's could have been used to pay off the IPP debt ...

They got into power on a wave of "sympathy voting" along with the standard empty promises. The question is how do we move forward and turn this in our favor?

Firstly educating and making aware the a man on the street to whats happened and showing them something is going to be done about it. Mentions of honest government and perhaps IK are on the horizon?

It needs to be made clear - whoever does come into power must have the full support in the decisions taken. Strong harsh decisions need to be made and they will need patience. To change the economy from where it is could take 4 to 8 years.
The first thing i would do is accountability starting from the top. Show us where you have accrued your wealth and where the money came from - otherwise hand it over to the treasury.
Secondly stop the people like Zardari EVER having the opportunity to plunder the coffers again - and i mean STOP. Not go to exile - trial them and sentence them if found guilty.

This would be the start - then start rebuilding. International respect would immediately come when these steps were taken along with foreign investment and long term stability.
Rome wasn't built in a day - 1 step at a time.