Pakistan’s inflation rate jumps to 7.19 per cent in January 2019

[Champion_Usmani]

Economy is in disastrous situation, and just look at this.
This is what we call "Allalay tallalay"..

https://twitter.com/x/status/1093927883456819200

 

[AgNoStiC MuSliM]

Economy is in disastrous situation, and just look at this.
This is what we call "Allalay tallalay"..

https://twitter.com/x/status/1093927883456819200

Any other source for this?

 

[nahtanbob]

Regardless of who is in the government, there is no magic wand to fix things. You put the sead for apple and expect mangoes to grow, that does not happened. Previous governments were as incompetent as current government but at least current government is changing policies to improve things. It will take time, 30 years of neglect can’t be fixed in 6 months. It will take 5 to 10 years. Do you want IK to dissolve assembly? Then What? What is the alternative? Do You want corrupt mafia to come back in power and go back to IMF to take more loans?
Saudi, UAE don’t trust PMLN government and won’t bail them out. What other option is there? You want Moulana Fazulur Rahman to become PM? He is full of hot air and does not know anything about running government.
All of those who are talking nonsense know that Pakistan is in this condition because of their wrong policies. These are the real enemy of state who destroy every government institution. They are working on foreign agenda and will be willing to compromise on nuclear assest. The moment these corrupt mafia compromised on Nuclear assests, Pakistan decline will start and western power will make Pakistan worsen then Iraq, Yemen and Syria.

as long as your population keeps increasing and you are dependent on outsiders for energy pakistan will not be independent

 

[Champion_Usmani]

Some Debt Figures...

https://twitter.com/x/status/1093835984825958400

 

[jupiter2007]

That's not going to help when you have a major deficit with your main trade partner.

Me and others have already written pages and pages on economy and research related to economy.

"Magna ki adat" will go away when we develop our country. We need to cut government overhead by introducing e-governmen. We need Economic reforms, economic policies that attract investment, increase exports and decrease the imports. We must improve current economic situation in the country. Here are few steps we can take.....

*Naya Pakistan policies -

• presidential ordinances
  • If opposition is not ready, government should introduce presidential ordinances to push through the government’s legislative and reforms agenda.
• Fixing FBR
  • Once FBR is fixed and functional, it will become easy to collect taxes from big fish.
• Fixing state institutions: PIA, Steel mill, etc.
• Devaluation of power/local body system

*Agriculture -

• Introduce new agriculture technology to increase production and decrease wastage of water.
• Half of the Balochistan can be converted to farmland if we can build new dams and provide water.
• We need to increase cotton, tea, coffee, date and oliver production for both local use and export.
• study needs to be conducted to see if it's possible to do rubber plantation in Pakistan.
• Why are we importing fertilizers when we can use advance technology to produce it locally?

*Livestock & Seafood Technology -

• We need commercial animal farming (production of chicken and duck eggs, chickens, Ducks, goats, Sheep/lamb, Beef, buffalos) for both dairy products and halal meat for local use and export.
• We need to focus on commercial seafood processing, processing and packaging plant need to be build for easy export.

*IT Industry -

• We need to have Pakistan Institute of information technology (To Imran Khan and khalid maqbool siddiqui) - Joint government-private venture for Information technology search, IT support, Application and Video game development Center of Pakistan
  • Partner with Apple, Dell, HP, blockchain, IBM, Google, Microsoft, Citrix, VMware, Amazon.com, Inc.

*Tourism Industry -

• Government must Clearly Defined Objectives. Clearly defining the tourism policy with new vision, perspective, approach and not limiting tourism activities and venture into new area for example Medical tourism, religious tourism, historical tourism, Culinary tourism or food tourism (developing new and fusion food dishes to attract tourists). Pakistan need to build hotel, resorts, cabins, etc with proper marketing campaign.
  
• Developing the industry with tourism divisions
  • Administration
  • Planning and programming
  • publicity and conference on tourism
  • Travel trade and hospitality
  • Accommodation/supplementary accommodation and wildlife
  • Market research

• Type of tourism
  • Incentive tourism
  • Eco-tourism
  • Cultural and Historical tourism
  • Religious tourism
  • Leisure tourism
  • Adventure tourism
  • Education tourism
  • Business tourism
  • Health or medical tourism
  • Special interest tourism
  • Sports and recreation tourism
  • Culinary tourism or food tourism
• Marketing is the key to success

*Small Industry - Make it easier for companies/people to take loan to start small industry and business.

*Telecoms Industry - We need major investment to improve it, we need to partner with China.

*Pakistan need research and development institutes -

• Pakistan Center for Automotive Research and Testing
• Pakistan Engineering and Education Research Center
• National agriculture research center
• Pakistan Institute of Technology (Partner with Kanazawa Institute of Technology)
• Pakistan Institute of information technology
• Biomedical Research Institute of Pakistan

Fix bureaucracy and media, rest will be easy.
Remove CIA and RAW agents hiding in our media.




Lots of issues but it’s not as simple as you think. 30 years of neglect can’t be fixed in 120 days. It will take 2 years to stabilize the economy. IK government is going to get IMF bailouts package by March/April 2019, hoping that we will be in much better situation by then.

1) New laws to improve things: Farogh Naseem does not have magic wand. Since IK government doesn’t have the 2/3 majority they can pass any bill easily. PTI will need help from PPP and in return PPP might request NRO for Zardari. So it’s not as simple as you think.

2) Bureaucracy reforms: PPP and PMLN have their supporters in Bureaucracy, it’s going to be tough job straightening it. Best of luck to IK.

3) Police restructuring: Soon It’s going to be implemented in 3 provinces. Sindh will play “marsoon, marsoon, Sindh na desoon” card.

4) Energy plan: it’s a Multi prong strategy, changing of cables, new electric meters, eliminate electricity theft, find alternate ways to produce energy, solar, wind, wave, bio waste, etc. completinh the projects which were Inaugurated during PMLN government.

5) Development plan: Housing scheme is going to start from June 2019 at it will take probably 10 years to build 5 million low cost houses. Unfortunately as of now there is no plan to build a new cities other then technology city which was already announced and mostly likely it will start from 2020. There are many private companies involved in smaller house schemes.

6) Youth training and employment plan: plan is already in work and it’s going to be implemented in 2019.

7) Meat is a billion dollar industry. Brazil is a number one chicken meat exporter in the world. There main importer are ME Country like Saudi Arabia, UAE and Qatar.
Pakistan has a potential to export eggs and halal meat (Chickens, Goats and beef) to ME countries. If we focus on it, i am sure, Saudi and Malaysia will be more then happy to invest in animal farming and building commercial slaughter houses.

8) Seafood farming and exports is another very lucrative business. (For example Farming White and silver pomfret fish)

9) e-Government solution to automate many government processes. Introducing technology and IT in government will reduce government overhead, eliminate ghost employees, simplified things and make it easy to manage.

We are bunch of lazy people, we can’t Comparing ourselves with Vietnam and Taiwan. Let’s stop this khayali pulao. Let us compare Pakistani education system and skill workers to these countries.

My suggestions is to focus on basics, education, water issues, and electricity.

1) Eliminates electricity thief.
2) No industry can survive without electricity. we must increase electricity production (Hydro, solar and wind power).
3) New Agriculture technology should be introduced to increase production and best use of water.
4) Increase the minimum wage
5) Convert unskilled workers into skilled workers by offering free vocational training.
6) Improve dairy farming and milk and related products for both domestic use and export.
7) Improve Seafood farming, packaging and export.
8) Focus on Auto industries by introducing more completion by making JV with China and other countries.
9) improve Tourism

as long as your population keeps increasing and you are dependent on outsiders for energy pakistan will not be independent

We can manage with amount of energy we are producing but We need to prevent energy theft and produce energy on lower cost.

 

[nahtanbob]

We can manage with amount of energy we are producing but We need to prevent energy theft and produce energy on lower cost.

unless you can increase renewable energy you will be spending a lot of your national resource getting energy from others

 

[jupiter2007]

unless you can increase renewable energy you will be spending a lot of your national resource getting energy from others

Solar energy park and wave energy are the future. We need to buy advance solar technology and start building panels.

 

[The Diplomat]

Govt. of Pakistan monetary policy should be adjusted to lower interest rates, so that borrowing becomes cheaper and the circular flow of money increases. The current base rate is 10.25%, there is no need for such high interest, all this does is encourage people to save and restrict money flow. This is basic A-Level economics.



I'm disappointed that Asad Umar can't seem to make correct decisions. Too much talk and too little work. For everyone's info I'm a PTI voter.

 

[randomradio]

What influence did Sharif have that was significantly greater than IK's?

The ability to challenge the army, which meant the Chinese would actually talk to you. The same reason why Modi visited Sharif or why the Dawn leaks happened.

Otoh, nobody in India or China are overly bothered about IK.

That 'major trade deficit' came about during the last two governments, including 5 years of a Sharif government that you claim has 'significant influence with China'.

Not really.

https://tribune.com.pk/story/1836177/2-pakistan-ranked-8th-size-trade-deficit/
The major driver was the trade deficit, which widened from $19.2 billion in 2012 to $35.6 billion in 2017, according to data extracted from the ITC’s Trademap.org.

Pakistan had a trade deficit of $13.9 billion with China and $6.7 billion with the UAE in 2017. Moreover, it had a trade deficit of more than $1 billion with nine countries including Saudi Arabia, India, Thailand and Japan. In 2013, the trade deficit with China was $4 billion. Hence, the increase in CPEC-related imports was by far the most important factor in the rising trade deficit.

On a side note, the amount of Indian support for Nawaz Sharif and 'experienced Pakistani politicians', and their criticism of Imran Khan & the PTI is quite 'illuminating'.

I have no love for Sharif or IK. What I do have love for is due process, which Sharif was denied.

As for the economic situation, I am merely stating the obvious.

You could easily hit the CCC rating in a very short time.
https://www.dawn.com/news/1461907/sp-downgrades-pakistans-long-term-credit-rating
The S&P said the GDP growth rate would fall to four per cent this year (2019) from 5.8pc last year (2018) and then stay 3.5pc for the next two years (2020 and 2021) and fall further to 3.3pc by 2022.

 

[ziaulislam]

This govt will make Pakistan venuzvela and we will see hyperinflation at the end of their 5yrs tenure

the only that thing dictate inflation will be deficits..
1.fiscal deficit (how much money you print)
2.and current account deficit (how much money flows out of the country), this can be artificially managed with importing dollars on loans
..this is simple mathematics
if govt deficits goes up inflation will go up and vice versa

now in all honesty tell us what has happened in last 6 months..

if you still cant get to an answer than you are like championusman being paid for something for which you have to make your money halal or.......

 

[AgNoStiC MuSliM]

The ability to challenge the army, which meant the Chinese would actually talk to you. The same reason why Modi visited Sharif or why the Dawn leaks happened.

Why would the ability to challenge the Army mean the Chinese would talk to a Pakistani PM? Common sense would dictate that the Chinese, or any country, would be far more comfortable talking to a Pakistani PM that had the support of the Army, because that would imply that both centers of power are on the same page.

The Dawn leaks occurred because of a lack of discipline, and undermined and weakened Sharif, again, not something the Chinese would want because it makes the domestic Pakistani situation look unstable.

Not really.

https://tribune.com.pk/story/1836177/2-pakistan-ranked-8th-size-trade-deficit/
The major driver was the trade deficit, which widened from $19.2 billion in 2012 to $35.6 billion in 2017, according to data extracted from the ITC’s Trademap.org.

Not really how? IK was elected in 2018, the deficit numbers you show clearly point to Nawaz Sharif's government presiding over them.

I have no love for Sharif or IK. What I do have love for is due process, which Sharif was denied.

Sharif was not denied due process - he was investigated, prosecuted and sentenced in the Pakistani judicial system according the constitution and prevalent laws. That is the definition of due process.

 

[Yaseen1]

the only that thing dictate inflation will be deficits..
1.fiscal deficit (how much money you print)
2.and current account deficit (how much money flows out of the country), this can be artificially managed with importing dollars on loans
..this is simple mathematics
if govt deficits goes up inflation will go up and vice versa

now in all honesty tell us what has happened in last 6 months..

if you still cant get to an answer than you are like championusman being paid for something for which you have to make your moiney halal or.......

Govt has claimed it received 12 to 20 billions loan from arab naions and china is also giving 2.5 billion dollars as loan so why inflation is increasing although govt is taking billions of dollar in loans if inflation can be controlled by taking loans

 

[saiyan0321]

What I do have love for is due process, which Sharif was denied.

Huh.. He wasn't grabbed from his home and sent to adiala straight away.. There was an entire legal case against him. Both sides presented evidence. Have you even read the national accountability bureau of 2000 which has the entire procedure of such proceedings laid out along with rights of appeal of evidence... You can of course disagree that the laws are imperfect but what can't is that due process was not followed, it was due process that saw his bail being accepted and his appeal being heard.. ask any lawyer on your vicinity whether a person getting bail bcz the impugned order has been placed on hiatus is due process or not.. I blame indian media here. :p :p

 

[randomradio]

Why would the ability to challenge the Army mean the Chinese would talk to a Pakistani PM? Common sense would dictate that the Chinese, or any country, would be far more comfortable talking to a Pakistani PM that had the support of the Army, because that would imply that both centers of power are on the same page.

You will be surprised by how much it doesn't work that way.

India doesn't want to give importance to the PA, hence a strong civilian govt is more important. The fact is India understands that peace with Pak is impossible with the PA in power.

The Chinese prefer dealing with the civilians because it gives credibility to the OBOR. Otherwise, the world is simply going to see the OBOR as the Chinese using the army to gain leverage over Pakistan at the expense of the Pakistani people.

So perception matters a lot. A strong civilian leader helped create a perception that the civvies were actually in control.

IK, otoh, is not stable. He started off as a moderate politician, so he actually had supporters even in India. But then he quickly became Islamicised and is now largely considered a mullah. His perception outside Pakistan is at rock bottom. He is now largely seen as a PA puppet.

Here's why you face problems:
https://www.thestar.com/opinion/con...-is-being-held-back-by-its-mullah-ocracy.html

Sharif had broken out of this mould, but PA decided to put him away for good instead. And now we have Imran-Mullah-Khan running Pakistan.

The Dawn leaks occurred because of a lack of discipline, and undermined and weakened Sharif, again, not something the Chinese would want because it makes the domestic Pakistani situation look unstable.

The Dawn leaks significantly strengthened Sharif. It wasn't an accident, it was a deliberate leak from the Sharif govt.

Not really how? IK was elected in 2018, the deficit numbers you show clearly point to Nawaz Sharif's government presiding over them.

Sharif lost power by the end of 2016. The govt itself had become toothless by then, without the ability to deal with the rising deficit.

What happened here is neither Sharif's nor IK's fault. Who else do you think is running Pakistan? Why do you think Sharif is being made the scapegoat?

Sharif was not denied due process - he was investigated, prosecuted and sentenced in the Pakistani judicial system according the constitution and prevalent laws. That is the definition of due process.

It was a kangaroo court, using made up theories and not actual proof to deliver the verdict. In a real court, the case would have been quashed by a real judge on the very first day.

Do you even know how he was "proven" to be corrupt?

 

[ziaulislam]

Govt has claimed it received 12 to 20 billions loan from arab naions and china is also giving 2.5 billion dollars as loan so why inflation is increasing although govt is taking billions of dollar in loans if inflation can be controlled by taking loans

because its lag factor...

the fiscal deficit of last year (printing notes) will be visible now..
if govt print notes today and distribute to people in form of pay and labor when do you think rupee will loose value..not today but over next 6-7 months when people spend that money...

similarly, govt overnight cant decrease printing notes SUDDENLY..this year the plan is to keep deficit at 5% of gdp(1500 billion rupees) of printing money..last year it was almost 3000 billion (7~% plus 3% in power sector)..this it itself is a huge adjustment..if you suddenly stop printing notes you will start with negative 600 billion rupees budget!

---
this is not rocket science. its taught to 8th level students in the rest of the world..

lastly, an inflation of 4-5% will always be needed to stimulate growth so people just dont keep money but invest in savings though current 7% is high brief period of artifical 3% in PML N era was also bad which led to historical decrease savings and led to increase foreign capital causing increase Current account deficit