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Bangladesh Borrowing to send economy roaring

Bilal9

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For those who are trying to compare BD with Pakistan:


"KARACHI: The country paid over $7 billion in external debt servicing for the first half of fiscal year 2020-21 (1HFY21) "

In contrast in the whole of 2020, BD paid 2.2 billion US dollars.

Even taking into account that Pakistan raises 50 billion dollars in revenue per year compared to 40 billion US dollars for BD, that is around SIX times the burden as a proportion of revenue collection for Pakistan as compared to BD.

BD is one of the less indebted countries in the developing world and the debt burden as a proportion of GDP is actually projected to fall a little over this decade. There is little to worry about and we have a mathematically illiterate BD poster and a Pakistani poster, probably due to trying to feel better at Pakistan's dire situation and so trying to say that BD is no better and going down the same path, making themselves look very ignorant.
Bhai let's not attack people, let's attack viewpoints and provide counterpoints (which you have done). Same goes for the other posters here in the Bangladeshi section.

Attacking people personally wastes pointless bandwidth in triggering, name calling and infighting....

This is also the general rule of the forum.

Before telling other folks, I have been trying to do this myself.
 

Bilal9

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Exactly

I absolutely agree with you conservatism. Perhaps the best approach is to build those long-term investment for the future, say build tracks & other fixed assets to HSR standards, while short-term investment should be made for present, say buy liquidable assets like rolling stocks at semi-HSR standards. As purchasing power increase, HSR will become more affordable in the future.

HSR, or semi-HSR as you put it, is not just about connecting two hubs, is about boosting the whole economic belt in between. It can become a powerful tool for economic planners.

On topic, loan itself is not a scary thing, it's just business, depends on how one use it. As long as BD is not borrowing to waste on things that generate zero return like arms, the nation is not on the wrong track.

Terima kasih, nice to see you too my old buddy!
Yup, same thoughts here.

It is not infinitely more expensive to build HSR infra (e.g. immovable concrete slipper ballast-less railway track roadbed, continuous-welded jointless trackage) rather than high quality ballasted track.

The liquidable assets like you said (locomotives, railway wagons and passenger cars) will need to be replaced every ten years in any case, and the technology level of Indonesia (and that of Bangladesh following at ten years interval) will also improve at that ten year interval, so new technology items can be continually refreshed and replaced.

I suspect eventually railways in both Indonesia and Bangladesh will get electrified which will reduce pollution, in addition to increase in speeds, enabling HSR on pre-existing (hopefully well-maintained) track.
 

Bilal9

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Everything is related to the economy. For a stronger economy, faster train service would be preferable. A faster train is more costly to ride. So, the country's people must have the economic muscle/ source of income to ride them whenever needed and pay a higher charge for the ride.
@bluesky bhai, you are right.

However I want to point out that in very few countries (only in Europe, Japan, Korea and China so far) have high speed trains which have supplanted air travel.

To supplant air travel by well-heeled customers, train travel needs to offer the same amount of safety and luxury, which is not the case in Bangladesh. The basics (track quality/maintenance/smoothness) remains a huge concern, not talking about coach comfort which is a much later after-thought.

At this time only the lower and middle classes ride trains, which means we have volume but also the need for low fares. HSR cannot be afforded at those low fares.
 
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Shotgunner51

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@bluesky bhai, you are right.

However I want to point out that in very few countries (only in Europe, Japan, Korea and China so far) have high speed trains supplanted air travel.

To supplant air travel by well-heeled customers, train travel needs to offer the same amount of safety and luxury, which is not the case in Bangladesh. The basics (track quality/maintenance/smoothness) remains a huge concern, not talking about coach comfort which is a much later after-thought.

At this time only the lower and middle classes ride trains, which means we have volume but also the need for low fares. HSR cannot be afforded at those low fares.
Well said!
 

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