What default means.?

[epebble]

@PakSword

https://twitter.com/x/status/1598217920789848065

This is what Google translate says:

The import of raw materials and medical devices in Pakistan is stopped, there is a fear of severe crisis of medicines

This is so stupid. They are allowing Volvo luxury cars ( i saw a thread on taxes being reduced) but stopping medical supplies. I have a feeling that import licenses are going to people with powerful lobbies and the auto sector has more power than medical sector.

 

[Goenitz]

This is what Google translate says:

The import of raw materials and medical devices in Pakistan is stopped, there is a fear of severe crisis of medicines

This is so stupid. They are allowing Volvo luxury cars ( i saw a thread on taxes being reduced) but stopping medical supplies. I have a feeling that import licenses are going to people with powerful lobbies and the auto sector has more power than medical sector.

Exact translation..
Actually, auto industry was closed during 2 years 19/20. So, these orders were booked perhaps 1 year ago and now coming to country. Anyway, luxury items must be banned.

 

[VCheng]

While it certainly will cause difficulties, the main one being lack of access to new capital, a lot of fear mongering that creditors will come and seize property etc., is absurd. USSR problem was disintegration of a large nation. Economic collapse was caused by collapse of the nation. No one expects Pakistan to break into pieces because of default. Lenders do not benefit by arm twisting. They benefit if the economy can be revived so that repayment is possible. Everybody wants an injured horse to recover so that they can ride it, not allow it to die so that they can eat it. Sri Lanka had an extreme case of mismanagement where they did not impose Exchange Controls early enough. Finance minister Dar has already imposed Exchange control before reaching the point of no return.

The last time I checked, Sri Lanka went through the (temporary) shortages of petrol, medicine and food and it was still there as a country. Pakistan can surely do the same.

 

[Asian.Century]

If defaults happen
Which is 92% chance(up from 5%)

The first thing to be useless will be rupee.so get everything out of rupees.

The second thing to go will be dollars in banks. Get them out of the banking sector/govt will confiscate them


Third thing to go will be real estate. Real estate values will fall as a lot of foreigners will cash out of it.

Basically just see what happened in Afghanistan..that's your template.

Hoard dollars as much as you can.
No wonder my family were selling dollars at 250 4 months ago in black. I have checked but rumours are they are running at 300+

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https://twitter.com/x/status/1661045356048654336

 

[Mr.JoJI]

Exactly. Default is a difficult step, but sometimes the better step to take in the long run. It is not the end of the world, as I said.



If Pakistan defaults, it will not be easy, for sure, but it will be survivable, I am equally sure.

Sounds like someone with no economics course would say

The last time I checked, Sri Lanka went through the (temporary) shortages of petrol, medicine and food and it was still there as a country. Pakistan can surely do the same.

Srilankans basically burnt their government infrastructure, lawlessness reached peak, situation was uncontrollable to the point army couldn't be deployed cause they didn't had the fuel to mobilize