Edevelop
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According to data released by the State Bank of Pakistan (SBP) on Wednesday, FDI decreased by $989.3 million year-on-year in July-June, as it amounted to almost $1.7 billion in 2013-14.
2014-15: Foreign direct investment shrinks by 58.2% - The Express Tribune
Pakistan’s exports have plunged to a four-year low of $23.9 billion in the recently ended financial year – missing the target by $3.1 billion and tattering the much-trumpeted ‘Vision 2025’ that promises six times increase in exports in the next 10 years.
The country exported goods worth $23.9 billion during the last financial year 2014-15, which were $1.3 billion or 4.9% less than the previous fiscal year, reported the Pakistan Bureau of Statistics (PBS) on Thursday.
It was a poorer performance compared to Pakistan Peoples Party’s (PPP) last year in office, which is generally considered as a bad year in terms of economic policies and governance. In the last year of the PPP government, the exports had increased to $24.5 billon.
Alarming: Pakistan’s exports plunge to 4-year low - The Express Tribune
Pakistan’s external debt is projected to grow to a whopping $90 billion in the next four years and the country will need $20 billion a year just to meet its external financing requirements amid concerns that all constitutional arrangements put in place to manage debt have become ineffective.
Pakistan’s external debt set to grow to whopping $90b - The Express Tribune
While one moaned the excessive borrowing spree of the PPP led government, debt piling over the last two and half years has been no less scary. Violating all norms (including constitutional) of permissible level of debt in an economy, Pakistan seems headed towards a debt trap. From poorly negotiated terms with the IMF that decelerate economic activity and negate employment creation in home markets, the story is endless: crowding out the of the private sector (more than 85% loan portfolios of the commercial banks in the last 3 years are directed towards the government); compromising the very concept of sovereign debt - cost of governmental borrowing, which in-turn can have far reaching implications not only on the structure of debt but also on the sheer long-term
ability of future governments to reduce the debt ratio; the interest rate conundrum and compromising on the option of using national savings at a given time to reduce national debt; raising expensive debt to retire cheaper borrowings; and last but not least, the whole business of questionable dollar denominated bond issues in the international markets. Pakistan’s total external liabilities at commercial rates today stand at about 36% of our total debt, our principal and interest payment alone tend to be as much as 20% of our total export earnings and the total debt today is as high as nearly two and a half times of our total annual export receipts.
National debt: Facts from fiction?
“The cotton crop has failed and output is likely to be down by over 18 percent. This alone can reduce the GDP growth rate by one percentage point, given the role of cotton in the national economy,” it added. “Exports plummeted by over 14 percent in the first six months. Imports grew in overall quantity terms, thereby adversely impacting on production in import-substituting industries.” -
It said, according to the Social Policy and Development Centre’s estimates, the number of poor is annually increasing by more than three million. “The pressure for fiscal contraction under the IMF program has probably been one factor contributing to the recent increase in poverty,” the statement said.
It said there were also a number of factual inconsistencies in the statement made by Finger on the state of public finances and the IMF mission chief asserts that the reduction in fiscal deficit is a major achievement of the program.
The fiscal deficit is projected to come down to 4.3 percent of the GDP in 2015-16 from 8 percent of the GDP in 2012-13. However, in the latter year, there was a retirement of circular debt of the magnitude of 1.4 percent of the GDP.
“Currently, these liabilities have exceeded two percent of the GDP and inclusive of this the fiscal deficit will reach at least 6.3 percent of the GDP in 2015-16,” the statement said. “This indicates that the underlying magnitude of the fiscal deficit remains high.”
The think tank said the cash deficit may exceed 4.3 percent of the GDP in 2015-16 due to the cost of the prime minister’s agriculture relief package, higher tariff differential subsidy following the reduction in electricity tariff by Rs3/kilowatt hour, lower revenue from the gas infrastructure development cess and lower cash surplus by the provinces. “In fact, it will not be surprising if the fiscal deficit in 2015-16 exceeds the level attained last year of 5.3 percent of the GDP,” it added.
Think tank slams IMF for being soft on Pakistan’s economic indicators | Business | thenews.com.pk
My question to you is, if everything is hunky dory as the articles you posted make it out to be, why is Pakistan's overall economic situation getting worse.
According to the articles you posted, Investors are flocking to Pakistan and Pakistan's exports are increasing. But why do the final numbers say that FDI is at an all time low, Exports are at an all time low, Loans are at an all time high and most importantly our Cotton Crop has failed. SPDC has estimated that the poor in Pakistan are increasing at a rate of 3 million annually, so if the economy is improving than why is the number of poor increasing instead of decreasing.
Instead of making tall empty claims, why don't you provide any factual data.
We are discussing the economy here, please feel free to open a new thread to talk about politics. I would appreciate it, if you would not derail this thread. Lets stick to the economy.
He indeed is a very interesting fellow. I remember in an another thread, he was claiming that he was an American. Was very amusing, and good for laughter haha.
Here is the problem. You are taking 2 or 3 things and generalizing. The debt has largely been due to IMF loans of $6-7 billion, which will have to be returned in a year or two. But thats besides the point. The IMF has stated that reforms are going well and the money has been utilized in the positive side.
So social policy applies only to federal government ? The government can make whatever it wants but in the end its the provinces that have to implement it. After the 18th amendment the burden is on the provinces. PTI bragged about bringing change in '90 days' which we all know never happened and this is the difference between PTI and PML-N, it makes promises it knows it can't do.
About FDI here is the thing. PTI should let government implement CPEC, it will be nation's largest FDI.
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. Now why don't you show me a proof of looted money that every NS hater whether IK supporter or a military rule lover conspires on these thread day and night? The above are proofs and you can check them. On NS, I'd like some REAL proof. Not he said, she said or ARY's manufactured documents that they show while being five feet away from the Cameras!!! If those documents can't be presented on Cameras, you think those can make it to the court as "presentable facts" he no. Good job making up stories though 
