What's new

Debt servicing surges to Rs2.1tr

insight-out

FULL MEMBER
Sep 16, 2009
799
1
1,122
Country
Pakistan
Location
Pakistan
Of course life will be tough, but the guy you quoted asked "how will we survive" like as if it's some sort of apocolypse. Although TBW apocolypse would probably be easier to survive in Pakistan, because that is the only way the elitist leaches will leave our country alone.

Besides i personally think it won't go that way.
Life will be tough, but it will go on ....not for everyone. A large chunk of the population will fall below the poverty line. And the desperately poor will literally die.

Yes, in the long run, the country will adjust, and it may actually come out stronger. But short term it would be devastating. That's why the US and Europe use economic sanctions as a weapon.
 

m52k85

FULL MEMBER
May 24, 2013
543
0
513
Country
Pakistan
Location
United Kingdom
I would h
Don't be so dramatic. Greece went bacnkrupt a few years ago - nothings changed. So did Argentina, life goes it. Assume we did default on the loans, what do you think will happen? Other than a reality check to all those living beyond their means - nothing. People will just re-arrange new payment plans to get their money back. The only big impact will be we won't be able to get credit and the negatives associated with that.
True a certain extent, imported luxury items like tea, cooking oil, cellphones etc would become expensive, these are items we can live without.

Other items like pulses will re-adjust and we just start growing them more.

However the main problem is oil and gas, our domestic economy would come to a stand still we are unable to procure imported fuel. Here is where the government needs to exercise longterm vission, and make production of wind turbines, solar panels a strategic project like the A-bomb.

Once we have that down we will be in a position to go through a managed default.

Why was @Norwegian banned?
 

313ghazi

ELITE MEMBER
Mar 14, 2017
9,210
39
18,718
Country
Pakistan
Location
United Kingdom
I would h

True a certain extent, imported luxury items like tea, cooking oil, cellphones etc would become expensive, these are items we can live without.

Other items like pulses will re-adjust and we just start growing them more.

However the main problem is oil and gas, our domestic economy would come to a stand still we are unable to procure imported fuel. Here is where the government needs to exercise longterm vission, and make production of wind turbines, solar panels a strategic project like the A-bomb.

Once we have that down we will be in a position to go through a managed default.

Why was @Norwegian banned?
I don't think we should default, I think we should be intelligent about our spending, we should be intelligent about our planning and we need to work harder as a nation.

We are investing in CPEC to build infrastructure to support industrialisation, but what are we doing to create industry itself? What are out businessmen doing? What is our chamber of commerce or business schools doing to make more businesses? What staff are we training to work in factories, what training are we providing to ensure QC is implemented to make goods of an exportable standard?

Nearly 10% of our youth are unemployed and we have no count of number of people earning below minimum wage. Our economy is also largely undocumented. The level of productivity is very low. This is our biggest challenge. If you are working 12 hours a day but not producing as much as other people, and earning as much as other people, we need to change that.

Similarly, we need to focus on shifting to 80-90% renewable energy where possible. Our urban planners should change the model of our cities should that all regular travel is done through public transports. Cars should be something people use occasionally not every day. This way we can reduce traffic and ultimately our reliance on oil and gas.

Food security is another one. My family in Pakistan have a farm. They grow thier own atta, daal, sabzi, fruit, thoom, chillies, thanya, methi etc etc even rice at one point. It's only some spices, they buy from the bazaar or when stuff is out of season. Why is our country importing these things? We should be growing everything.

Our debt us an utter pittance for a country of 200 million people. Unfortunately our laziness, our poor leadership and lack of business acumen has held us back. If all overseas Pakistani's came back to Pakistan and worked here, you'd see a sea change in our economy with 10 years. There is nothing special about us, just that we have learnt and experienced the best practices of the rest of the world.
 

SoulSpokesman

FULL MEMBER
Dec 1, 2016
1,425
-2
1,021
Country
India
Location
India
@313ghazi

Ghazi sb,

We are investing in CPEC to build infrastructure to support industrialisation, but what are we doing to create industry itself?

That is very poignant, Unless Pakistan creates industries, which will generate jobs, exports and tax revenues, building the CPEC will only result in an internal and external payments crisis.

Regards
 

ghazi52

PDF THINK TANK: ANALYST
Mar 21, 2007
60,994
64
96,377
Country
Pakistan
Location
United States
PM Imran Khan Claims that PTI Govt has been paying back long term debt - this is again a reality and here are the SBP figures.

Public Debt Serviced

PTI ( 2.75 years) = 21.582B$
PMLN (5 Years) = 16.689B $
PPP (5 years) = 13.793 B$
This debt reservicing is a major hit to our foreign exchange reserves , this compounded our problems on the external side.

Total long term Debt Serviced (Public + Private)

PTI (2.75 years ) = 24.194 B$
PMLN (5 years) = 19.99 B$
PPP (5Years) = 16.774 B$


1621688654967.png




1621688679128.png
 

Norwegian

BANNED
Aug 19, 2014
15,077
8
23,345
Country
Pakistan
Location
Norway
PM Imran Khan Claims that PTI Govt has been paying back long term debt - this is again a reality and here are the SBP figures.

Public Debt Serviced

PTI ( 2.75 years) = 21.582B$
PMLN (5 Years) = 16.689B $
PPP (5 years) = 13.793 B$
This debt reservicing is a major hit to our foreign exchange reserves , this compounded our problems on the external side.

Total long term Debt Serviced (Public + Private)

PTI (2.75 years ) = 24.194 B$
PMLN (5 years) = 19.99 B$
PPP (5Years) = 16.774 B$


View attachment 746344



View attachment 746345
Kuch Sharm o Heya?
@muhammadhafeezmalik @Tameem @El Sidd @Mav3rick @blueazure
 

ziaulislam

ELITE MEMBER
Apr 22, 2010
15,241
10
14,602
Country
Pakistan
Location
United States
We were in same situation after Nawaz Sharif was ousted in 1999 coup. It was brilliant team of Shaukat Aziz that sorted out the mess. Root of the problem is Nawaz Sharif not Imran Khan.
View attachment 742325

Pakistan's economy is not growing because of debt trap. Without growing economy you can't increase revenues, and thus taxes
actually no...

it was Musharraf

USA and Paris club wrote off 10% of debt and rescheduled all of the debt..it was indeed a miracle of 9/11..we also got steady money of around 1-2b$ per year from 2002 to 2018
dont waste your time..
if logic worked ..
we wouldnt have had abu jahil
@Norwegian
debt to GDP numbers will need updating, as growth means numbers will much better.
if we keep 5% growth with 5% inflation i expect them to hit 60% by 2025(target is <60) provided we dont go into PMLN mood
 

koolio

SENIOR MEMBER
Sep 5, 2006
3,454
0
4,059
Country
Pakistan
Location
United Kingdom
Well with the highly unpredictable public, you never know in the next elections there may be a hung parliament and that will be doom for Pakistans long term recovery.
 

Silverblaze

SENIOR MEMBER
Nov 25, 2012
2,373
3
2,948
Country
Pakistan
Location
Pakistan
We were in same situation after Nawaz Sharif was ousted in 1999 coup. It was brilliant team of Shaukat Aziz that sorted out the mess. Root of the problem is Nawaz Sharif not Imran Khan.

Pakistan's economy is not growing because of debt trap. Without growing economy you can't increase revenues, and thus taxes
Sadly, I disagree. Shaukat Aziz and his brilliant team brought no structural reforms whatsoever. Major agricultural tax chors were not touched. Soes were still making losses and were not effectively privatized. Economy was not documented. Economic aid, and military aid kept the country in good financial books.

Today IK needs to privatize ASAP. Only this step will make enough fiscal space for govt. IK has made some reforms and economy is growing, 140 thousand companies have been brought under tax net. There are good signs in the economy and growth will increase.
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom