World Bank paints bleak picture of economy

[GumNaam]

yeah okay...PRETTY obvious that imf and the world bank take turns playing good cop bad cop...when imf gives a bad outlook, world bank gives a good outlook. now that the imf is giving a good outlook, walaa...world bank gives a bad outlook. both can go fck themselves and then each other for all I care. Pakistan, China, Iran, Turkey, Russia and rest of the central asian nations need to create a solid financial INVESTMENT system to offer to the world as a counter to this global financial mafia so that poor nations can just (bluntly put) DEFAULT on their payments, stop making payments to imf and the world bank...let them put santions and ruin credit ratings...the new SCO based financial investment system will be more than enough to keep everyone afloat. world bank and imf can just sit in a corner with a dunce cap and do this...

 

[AZ1]

CPEC most certainly had a large footprint on our trade deficit but I never said all of it was because of CPEC. Even if that were the case, what you need to realize is how investment works; have you ever taken a house loan? Initially you are under a large debt but you also have made an investment which will eventually pay off in the long run. Now, consider that your financial position has grown to the point where you are able to take yet another loan, invest in an additional property and so on. This means that you are under considerable debt but financially you are in a better position than you would be with no debt and no property (investment). Similarly, investment in CPEC, Power Projects etc., was essential to our long term interest and benefit.

What you need to give PTI is the entire blame of the financial crisis that you and I are in today. As for Hundi, do you know it is legal in leading countries of the world? What do you think Western Union is? We were supposed to cut down on "illegal" Hundi/Hawala but we decided to ban it completely for whatever reason even though all we needed to do was legitimize them and regulate them.

Remittances will grow regardless of whose Government it is, because more and more Pakistanis are going abroad and sending money to their families. If you mean it is growing through the Banking Sector, well it is because of no effort on the part of PTI which wasn't either FATF related or an act of God (COVID).

So basically, you don't really know what success is; well let me tell you in the simplest way possible, if the life of the poorest in your country is made easy then it is success otherwise it is a failure.






Yeah, nice, we are exporting Sugar and Wheat whenever it is surplus and then importing it after every 2 months......very smart indeed, but only for the mafias and cartels so don't be fooled with the export figures. And the actual exports such as Textile, Surgical/Sports Goods and edibles which we do not eventually import are all thanks to the surplus electricity that we all enjoy today, our load-shedding free summers now are because of the previous Government and not because of PTI; PTI is just merely reaping the rewards.

So basically you are saying what I have said that they kept taking loan without any vision and then now we have to pay what pmln done for us.

Our textile is running in full capacity, You didn't answer why in 2015 - 2017 export shows as decline as compare to previous there was no covid in pmln tenure.

as far I can see is, how foreign reserves improves, remittance improve, IT industry bringing $ billions. textile running in full capacity if you go through my profile you can check the threads with source rather than assumption. Our tax revenue increases, filer increases. Below is another source for you

FBR surpasses 41% of historic growth, collects 460 billion of revenue

Prime Minister (PM) Imran Khan has acknowledged the Federal Board of Revenue (FBR) for acing a historic growth of 41 per cent in March-2021 with collections

nation.com.pk

For poor:
Ehsas program
Medical Card
free shelters
free food
benazir income support program.

Free Education of courses check below

If you don't want to believe that's your issue but as of yet you haven't provide any source so I can assume that all your stats are based on your assumption.

 

[Goenitz]

Surgical/Sports Goods and edibles which we do not eventually import are all thanks to the surplus electricity that we all enjoy today,

that surplus.. for which shebaz said'' if it starts load shedding tomorrow, then we are not responsible.."" The electricity was supplied by IPPs, which PTI govt bargained for better rate.. also PTI started building dams.. PMLN couldn't make one dam, even after over spending...

 

[Shahzaz ud din]

Was Pakistan the Asian tiger economy before 2018? Just wondering.

Yes, there was a time in history when Pak(East+West) was the fourth-biggest economy in Asia. Even ahead of KSA, Turkey, SK, Malasia, Indonesia, etc

 

[cricketrulez]

yeah okay...PRETTY obvious that imf and the world bank take turns playing good cop bad cop...when imf gives a bad outlook, world bank gives a good outlook. now that the imf is giving a good outlook, walaa...world bank gives a bad outlook. both can go fck themselves and then each other for all I care. Pakistan, China, Iran, Turkey, Russia and rest of the central asian nations need to create a solid financial INVESTMENT system to offer to the world as a counter to this global financial mafia so that poor nations can just (bluntly put) DEFAULT on their payments, stop making payments to imf and the world bank...let them put santions and ruin credit ratings...the new SCO based financial investment system will be more than enough to keep everyone afloat. world bank and imf can just sit in a corner with a dunce cap and do this...

Interesting view point. becos, China is expecting a 20%/year ROI on CPEC investments. Here is what one of the respected posters here had to say about that.

>>>>
Chinese should have thought about this before hand rather than going on an unrealistic return of investment startegy

Who in their right mind think they will get an ROR of 20% on thermal power plants<<<

So Pakistan is going to tell of IMF, WB and China to go f' themselves?

Circular debt to be Rs50-60 billion by July 2020

THE government has extracted concessions worth several hundred billion rupees in future payments to the 47 independent power producers (IPPs) set up between 1990 and 2013 by forcing their hand but the ‘deal’ has left a bad taste in the mouths of their investors. The government has secured the...

defence.pk

 

[Patriot forever]

So, I have been hearing so much about surplus, FYI the surplus has eroded since December; however, what exactly is the target here? what is it that you find so amusing? a debt free economy? Even countries like Saudi Arabia, UK, USA, Germany etc,, have massive debt. What differentiates us is their ability to pay it back due to the growing economy......because none of them has the 'naya' system.

And my friend, honestly, if the economy was actually doing so great, HS would not have been sacked and we wouldn't have to listen to the dictation of IMF for a mere 600 million USD. And trust me, I would have had to complaint with PTI if our debt was higher riding on a 6+/7+ GDP; but well we have Corona to place all the blame on.

Most of the debt, well not most but a large chunk is indeed depreciation. But then again, who caused the massive devaluation which made all of us poorer by atleast 40%-60%.

Finally, what you refer to a debt cycle is actually how the world works, every country is in debt.

HS had little time left because of Senate election loss, had to be replaced by June. It is better if a new finance minister is appointed and prepares and presents a budget instead of someone who is going to present the budget in his last days and the newly appointed one carrying forward that budget. HS has done a decent job.

It was never about listening to IMF for a mere 500m tranche, heck imf is not even about 6billion (the total sum of programme). It was about the programme because we have huge payments in the form of maturing debt and interest payment and being in the imf programme opens avenues to cheap financing. WB and ADB commitments to us are far more than imf but they come with under imf umbrella.
I am extremely against the tough conditions of imf and in many cases they are counter productive. But imf programme is a necessity.

Yes all countries have debt and it is not bad if it's sustainable. In case of Pakistan it is unsustainable, that's what I was trying to tell you that the reason our debt is growing is due to us being pushed in a debt trap.
What is our source of income, externally just remittances and exports right? Internally just the fbr revenue mostly?
We are not even able to pay interest on the debt, so we take new loans? Heck we even used to take loans to finance our day to day running CAD externally and SBP and commercial borrowing internally.



And the most important point is during PLMN term the growth came on the basis of consumption not productivity. That kind of growth creates debt and is unsustainable let alone enable us to pay our debt back. The more this kind of growth the more debt we accumulate with no income to pay it back.

Yes rupee was not devalued but was brought to free float market rate. The currency lost it's value most during PLMN term because of CAD (supply and demand) , it was masked off by pumping $500million every month. Fudging with the numbers and artificial manipulation does not make you rich just fools you that you are rich.

 

[GumNaam]

Interesting view point. becos, China is expecting a 20%/year ROI on CPEC investments. Here is what one of the respected posters here had to say about that.

>>>>
Chinese should have thought about this before hand rather than going on an unrealistic return of investment startegy

Who in their right mind think they will get an ROR of 20% on thermal power plants<<<

So Pakistan is going to tell of IMF, WB and China to go f' themselves?

Circular debt to be Rs50-60 billion by July 2020

THE government has extracted concessions worth several hundred billion rupees in future payments to the 47 independent power producers (IPPs) set up between 1990 and 2013 by forcing their hand but the ‘deal’ has left a bad taste in the mouths of their investors. The government has secured the...

defence.pk

"interest rates" which are concrete are different from "return on investment" which is an estimate. The defining difference between the two is that an interest + principle payments have to be made regardless of profit or loss while return on investment shares if loss occurs and takes its portions if profit occurs. The latter is far FAR more friendly and conducive to the overall economy than the former. Besides...Chinese people are patient, that 20% ROI will be achieved with time and much to your dismay.

run along now.

 

[cricketrulez]

keep your indian butthurt driven farts within your indian butthole please.

"interest rates" which are concrete are different from "return on investment" which is an estimate. The defining difference between the two is that an interest + principle payments have to be made regardless of profit or loss while return on investment shares if loss occurs and takes its portions if profit occurs. The latter is far FAR more friendly and conducive to the overall economy than the former. Besides...Chinese people are patient, that 20% ROI will be achieved with time and much to your indian butthole's dismay.

run along now.

guess i touched a nerve. your issue is with @ziaulislam

Aren't CPEC commercial loans? so regardless what you call it roi or interest, chinese are demanding 20%/year.

This CPEC has been talked about as a game changer for 6+ years now.

 

[Patriot forever]

keep your indian butthurt driven farts within your indian butthole please.

"interest rates" which are concrete are different from "return on investment" which is an estimate. The defining difference between the two is that an interest + principle payments have to be made regardless of profit or loss while return on investment shares if loss occurs and takes its portions if profit occurs. The latter is far FAR more friendly and conducive to the overall economy than the former. Besides...Chinese people are patient, that 20% ROI will be achieved with time and much to your indian butthole's dismay.

run along now.

Bro actually that fixed ROI is based on initial investment amount. You can call it 'guaranteed income' which is included in the tariff these IPP's charge. Interest is separate which is also included in tariff. Underutilized Capacity payment is separate which is paid in addition to the tariff when utilization drops below 92%.

China as a state is different, treat chinese companies individually. Just like Karkey does not define our relations with Turkey. There are many elements in CPEC which are based on concessionary state financing by China and are very beneficial for our country.
It is our own dealings with the Chinese companies that are coming to bite us just like Karkey and Reko Diq. Our previous government corruption and incompetence when negotiating with Chinese companies.

 

[crankthatskunk]

well, I have recommended it before, I will do it again. Bring back Ishaq Dar, charge him for treason and hang him.
At least it would take care of one Devil who have caused more damage to Pakistan than it is possible.
For those who cannot understand a simple maths about increase in debt. Here is simple explanation.

Say Pakistan has US $ 100 billion foreign debt.
When PMLN was in charge they cooked up the figures, obtained the loans in private companies name, formed for this sole purpose. Those loans were never shown in the official debt figures.
The Pakistan rupee was kept close to Rs 100 to 1 US $. When PMLN left the rate was Rs 108.
It went to Rs 165.
Thus that debt became 100 x 165 = Rs 16,500 billion instead of
100 x 108 = Rs 10,800 billion. An increase in debt of Rs 5,700 billion.

Things will get better when the Rupees firms against the dollars.

 

[syedtalhamaududi]

Where were you when pakistan went bankrupt in 2018?

So what? then so what about this topic also or talk when your leader return $93 billion as Pakistan may 2018 took $93 billion of loans.

This dollar rate is not for you, you are not pakistani just like nawaz sharif sons british national they called themselves after looting money from pakistan.

And so what meaning the economy is dying,
The youthia command first talked non stop about CAD, using it to kill the economy, now everyone should clap that the rs has slightly hardened.
For the love of God just keep watching 1992 videos. The while set up is destroying the country with Bajwa the head of what looks like Dad's Army

 

[Enigma SIG]

And so what meaning the economy is dying,
The youthia command first talked non stop about CAD, using it to kill the economy, now everyone should clap that the rs has slightly hardened.
For the love of God just keep watching 1992 videos. The while set up is destroying the country with Bajwa the head of what looks like Dad's Army

Killed the economy my ***. Maybe patwari's aren't getting their naan qeema now. Kon log ho yar. Maybe all you patwari's want is exports led by Naan Qeema so even foreigners can say we love you Nawaju!

Pakistan Reports Highest Monthly Exports in 10 Years (propakistani.pk)

Abdul Razak Dawood on Twitter: "Ministry of Commerce is glad to share that according to provisional figures, in March 2021 our exports increased to USD 2.345 Billion. This is an increase of 13.4% over Feb-2021. It is the monthly highest in last ten years." / Twitter

For the 9-month period of July 2020 to March 2021 of the current Financial Year (FY), Pakistan’s exports have increased by 7 percent to $18.669 billion compared to $17.451 billion in the corresponding period last year. During the same period, the import grew by 12 percent to USD 39.210 billion this fiscal year compared to $34.817 billion in the last fiscal year.

 

[aasimanwaar]

Means current account shifted to deficit from Surplus.

 

[syedtalhamaududi]

Means current account shifted to deficit from Surplus.

And growth is negative, economy shrinking, poverty rising with inflation sky rocketing what is their to celebrate.
By sacking Dr Abdul hafeez sheikh means that all the chest thumping was bs

 

[Shahzaz ud din]

When PMLN left the rate was Rs 108

Imran Khan to take an oath as Pakistan's 19th Prime Minister on 18.08.2018.

. Pakistani Rupee per 1 US Dollar Monthly average in 2018.

• Jan 110.573975 – 31 days
• Feb 110.555308 – 28 days
• Mar 112.196558 – 31 days
• Apr 115.650658 – 30 days
• May 115.591617 – 31 days
• Jun 118.612082 – 30 days
• Jul 124.359175 – 31 days
• Aug 123.530866 – 31 days
• Sep 123.696245 – 30 days
• Oct 129.760706 – 31 days
• Nov 133.818753 – 30 days
• Dec 139.062621 – 31 days