US offers strong support to rebuild Pakistan’s economy

[Trailer23]

Great, hope that 'strong support' is still on the cards after N-League is ousted...

 

[VCheng]

I usually don't like to reply to you because most of the time i don't see any particular solutions or positive direction (only counter narratives play out) from you. But just for once...
Pakistan's almost entire economy is dependent on foreign variables (you can continue to correct the technical flaws in the phrases here as your usual...). The only short term solution to that is to diversify that dependency, which was negated by bringing this lot to power. So yeah Pakistan, at this stage is in position to say no or turn down.

Basically, desperation allows only poor choices. I can agree with that, but please understand that the onus for that situation is totally upon Pakistan, still, and decades in the making. The silence from the Iron Brother should be telling in many ways too.

Before you say I am not offering any solutions, how many times over the years have I pointed out the use of default as a possible way out, given the inexorable trajectory of the Pakistani economy. We may be approaching that point relatively soon.

Not a good choice perhaps, but a choice nonetheless, which allows the US offer to be turned down.

 

[Norwegian]

So their presence is "validation" somehow of a political ploy by a man about to be kicked out? Hardly. The minutes of the particular meeting would make for some very interesting reading, were they to be made public, for sure.

If NCM vote was Pakistan's internal matter, then why US under secretary of state was giving instructions to his Pakistani counterpart about it? Subtle Patwarism?

Before you say I am not offering any solutions, how many times over the years have I pointed out the use of default as a possible way out, given the inexorable trajectory of the Pakistani economy. We may be approaching that point relatively soon.

Default is the solution lol? You do know what happened to Argentina, Lebanon, Sri Lanka after default and bankruptcy?

 

[waz]

Here silly me thought the donkeyleauge managed to secure an FTA or major FDI. It’s just more IMF talk.

 

[ghazi52]

Okay! we know what are they doing....

 

[VCheng]

Default is the solution lol? You do know what happened to Argentina, Lebanon, Sri Lanka after default and bankruptcy?

Please read for yourself:

Argentine debt restructuring - Wikipedia

en.wikipedia.org

 

[Norwegian]

Please read for yourself:

Argentine debt restructuring - Wikipedia

en.wikipedia.org

Economy of Argentine is still in deep shit despite default 20 years ago

‘We Were Left With Nothing’: Argentina’s Misery Deepens in the Pandemic (Published 2021)

The economy contracted by nearly 10 percent last year, and the country faces a reckoning with the I.M.F. over $45 billion in debts.

www.nytimes.com

 

[VCheng]

Economy of Argentine is still in deep shit despite default 20 years ago

‘We Were Left With Nothing’: Argentina’s Misery Deepens in the Pandemic (Published 2021)

The economy contracted by nearly 10 percent last year, and the country faces a reckoning with the I.M.F. over $45 billion in debts.

www.nytimes.com

The default gained it crucial time that it could have used to get its economy back on track. It is up to the nation itself to get its house in order. Besides, what are the alternatives? Bad and worse.

 

[Norwegian]

The default gained it crucial time that it could have used to get its economy back on track. It is up to the nation itself to get its house in order. Besides, what are the alternatives? Bad and worse.

Alternative is to ban all imports except crucial items such as medicine and fuel. Use remittances to payback growing debt repayments instead of taking new external debt. Don't import more than export until external debt to exports / remittances is significantly reduced. Stop worrying about gdp growth, inflation, currency devaluation during this painful restructure of the economy

 

[VCheng]

Alternative is to ban all imports except crucial items such as medicine and fuel. Use remittances to payback debt repayments repayments. Don't import more than export until external debt to gdp is significantly reduced

Such steps would be helpful, yes. But the big elephant in the room will remain energy costs, and the associated subsidies.

 

[Norwegian]

Such steps would be helpful, yes. But the big elephant in the room will remain energy costs, and the associated subsidies.

Sri Lanka can no longer import fuel because its foreign exchange reserves have run out. You want Pakistan to end up like them? It's better to stop this mindless import obsession now than later when you have no reserves left to burn

 

[VCheng]

Sri Lanka can no longer import fuel because its foreign exchange reserves have run out. You want Pakistan to end up like them? It's better to stop this mindless import obsession now than later when you have no reserves left to burn

These are the top 10 imports (2020 data):

Mineral fuels including oil: US$10.3 billion (22.5% of total imports)
Electrical machinery, equipment: $4.6 billion (9.9%)
Machinery including computers: $4.1 billion (8.9%)
Iron, steel: $3.2 billion (6.9%)
Animal/vegetable fats, oils, waxes: $2.25 billion (4.9%)
Plastics, plastic articles: $2.17 billion (4.7%)
Organic chemicals: $2.13 billion (4.7%)
Vehicles: $1.44 billion (3.1%)
Cotton: $1.39 billion (3%)
Oil seeds: $1.28 billion (2.8%)
Pakistan’s top 10 imports accounted for 71.5% of the overall value of its product purchases from other countries.

The point here is that nearly three-fourths of the imports are essential, at least, if not more.

 

[Norwegian]

These are the top 10 imports (2020 data):

Mineral fuels including oil: US$10.3 billion (22.5% of total imports)
Electrical machinery, equipment: $4.6 billion (9.9%)
Machinery including computers: $4.1 billion (8.9%)
Iron, steel: $3.2 billion (6.9%)
Animal/vegetable fats, oils, waxes: $2.25 billion (4.9%)
Plastics, plastic articles: $2.17 billion (4.7%)
Organic chemicals: $2.13 billion (4.7%)
Vehicles: $1.44 billion (3.1%)
Cotton: $1.39 billion (3%)
Oil seeds: $1.28 billion (2.8%)
Pakistan’s top 10 imports accounted for 71.5% of the overall value of its product purchases from other countries.

The point here is that nearly three-fourths of the imports are essential, at least, if not more.

Pakistan can cover upto 60 billion dollars worth of imports through its exports and remittances income. The rest must be borrowed

 

[VCheng]

Pakistan can cover upto 60 billion dollars worth of imports through its exports and remittances income. The rest must be borrowed

What about debt repayments that are coming due? What if the costs of borrowing more debt to cover past debt while interest accrues get too high? What if suitable lenders cannot be found, as seems to be happening with SA, china and even IMF?

 

[lastofthepatriots]