• Wednesday, October 18, 2017

Nawaz added whopping $35b to Pakistan’s debt

Discussion in 'Pakistani Siasat' started by notorious_eagle, Jul 30, 2017.

  1. notorious_eagle

    notorious_eagle PDF THINK TANK: CONSULTANT

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    ISLAMABAD:

    Former prime minister Nawaz Sharif’s government obtained a whopping $35 billion in new loans during his four-year tenure to repay maturing debt and keep official foreign currency reserves at a level which could give a sense of economic stability to investors.


    About $17 billion or nearly half of the total loans obtained from July 2013 to June 2017 were utilised to repay the previous debt, shows statistics maintained by the finance ministry. The government added net $18 billion to the country’s total external debt and liabilities – the highest amount added by any government during its tenure.

    From July 2013 to June 2017, Pakistan’s total external debt grew by 30% to $79.2 billion, according to an International Monetary Fund (IMF) report. Out of this, external public debt was about $62.3 billion – also up by 28% compared with the figure four years ago, shows the IMF report.

    The maximum number of loans – amounting to $10.1 billion, the highest taken out in any single year during the country’s 70-year history – was obtained during the last year of Nawaz’s government.



    Starting from July 2013, with every passing year, the quantum of external debt kept growing due to the government’s inability to implement policies that could have ensured sufficient non-debt creating inflows.

    The Supreme Court of Pakistan on Friday disqualified Nawaz on concealment of assets charges. Former finance minister Ishaq Dar would also have to face a reference in the accountability court over charges of a 91-time increase in his assets, which did not match his known sources of incomes.

    On October 19, 2016, the director general debt at the finance ministry had informed the Senate Standing Committee on Finance that from July 2013 to June 2016, the PML-N government took $25 billion worth of fresh loans. He had said that net addition to external debt during the three-year period was $13 billion.

    In 2013-14, the net increase in the external debt was roughly $3 billion. Similarly, in 2014-15, the net increase in debt was $4.42 billion, higher by 53% over the increase reported in the preceding year. There was a net addition of $5.6 billion in the country’s external debt during the fiscal year 2015-16, showing a growth of 28.2% over the increase in foreign debt in 2014-15, according to the ministry.

    During the fiscal year 2016-17, the last government had borrowed $10.1 billion and out of which it returned about $5 billion loans.

    The latest IMF report on Pakistan shows the country’s external debt at $79.2 billion by June 2017. It was $60.9 billion when the PML-N took the control of the government, according to the report. That means the government added $18.3 billion to the external debt.

    In June 2013, the gross official reserves held by the State Bank of Pakistan stood at $6 billion, which increased to $16 billion by June 2017. The entire increase of $10 billion in the official foreign currency reserves was the result of borrowings, as during this period exports kept on declining.

    The remaining $8 billion external debt was taken to meet the balance of payments requirements.

    Pakistan debt servicing cost balloons to Rs15 trillion

    According to sources in the finance ministry, maintaining official foreign currency reserves at this level is critical to giving a perception of an economic turnaround; and the former finance minister was also very sensitive about the issues of official foreign currency reserves and rupee-dollar parity.

    Dar had always presented the position of the official foreign currency reserves as an example of strong economy. He would often ignore the structural weaknesses of the economy like declining levels of savings and investments in terms of Gross Domestic Product.

    The IMF’s Article-IV report shows that Pakistan’s gross external debt in terms of exports was 193.2% in 2013; and this ratio deteriorated to 294.4% as of June 2017. During this period, Pakistan’s gross external financing requirements also almost doubled to $17.2 billion from $9.1 billion.

    While responding to deteriorating external sector situation, the finance ministry had said last week that “external borrowing is a routine and normal function of developing countries and Pakistan is no exception.”

    It had added that developing economies resort to borrowing to meet investment requirements, accelerate growth and create jobs. External borrowing is also necessitated to retire past debt, finance essential imports, build external buffers, and shore up external reserves to maintain external account sustainability in a global context.

    https://tribune.com.pk/story/1469896/nawaz-added-whopping-35b-pakistans-debt/
     
  2. Areesh

    Areesh ELITE MEMBER

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    Bhai t chup reh. Tera bheja bharati hai. Us main yeh batain nahi aaye gi.
     
  3. Zibago

    Zibago ELITE MEMBER

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    Nawaz added whopping $35b to Pakistan’s debt
    By Shahbaz Rana
    Published: July 30, 2017
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    Nawaz Sharif. PHOTO: REUTERS

    ISLAMABAD: Former prime minister Nawaz Sharif’s government obtained a whopping $35 billion in new loans during his four-year tenure to repay maturing debt and keep official foreign currency reserves at a level which could give a sense of economic stability to investors.

    About $17 billion or nearly half of the total loans obtained from July 2013 to June 2017 were utilised to repay the previous debt, shows statistics maintained by the finance ministry. The government added net $18 billion to the country’s total external debt and liabilities – the highest amount added by any government during its tenure.

    From July 2013 to June 2017, Pakistan’s total external debt grew by 30% to $79.2 billion, according to an International Monetary Fund (IMF) report. Out of this, external public debt was about $62.3 billion – also up by 28% compared with the figure four years ago, shows the IMF report.

    Govt to borrow another Rs41b to pay circular debt

    The maximum number of loans – amounting to $10.1 billion, the highest taken out in any single year during the country’s 70-year history – was obtained during the last year of Nawaz’s government.

    Starting from July 2013, with every passing year, the quantum of external debt kept growing due to the government’s inability to implement policies that could have ensured sufficient non-debt creating inflows.

    The Supreme Court of Pakistan on Friday disqualified Nawaz on concealment of assets charges. Former finance minister Ishaq Dar would also have to face a reference in the accountability court over charges of a 91-time increase in his assets, which did not match his known sources of incomes.

    On October 19, 2016, the director general debt at the finance ministry had informed the Senate Standing Committee on Finance that from July 2013 to June 2016, the PML-N government took $25 billion worth of fresh loans. He had said that net addition to external debt during the three-year period was $13 billion.

    In 2013-14, the net increase in the external debt was roughly $3 billion. Similarly, in 2014-15, the net increase in debt was $4.42 billion, higher by 53% over the increase reported in the preceding year. There was a net addition of $5.6 billion in the country’s external debt during the fiscal year 2015-16, showing a growth of 28.2% over the increase in foreign debt in 2014-15, according to the ministry.

    During the fiscal year 2016-17, the last government had borrowed $10.1 billion and out of which it returned about $5 billion loans.

    The latest IMF report on Pakistan shows the country’s external debt at $79.2 billion by June 2017. It was $60.9 billion when the PML-N took the control of the government, according to the report. That means the government added $18.3 billion to the external debt.

    In June 2013, the gross official reserves held by the State Bank of Pakistan stood at $6 billion, which increased to $16 billion by June 2017. The entire increase of $10 billion in the official foreign currency reserves was the result of borrowings, as during this period exports kept on declining.

    The remaining $8 billion external debt was taken to meet the balance of payments requirements.

    Pakistan debt servicing cost balloons to Rs15 trillion

    According to sources in the finance ministry, maintaining official foreign currency reserves at this level is critical to giving a perception of an economic turnaround; and the former finance minister was also very sensitive about the issues of official foreign currency reserves and rupee-dollar parity.

    Dar had always presented the position of the official foreign currency reserves as an example of strong economy. He would often ignore the structural weaknesses of the economy like declining levels of savings and investments in terms of Gross Domestic Product.

    The IMF’s Article-IV report shows that Pakistan’s gross external debt in terms of exports was 193.2% in 2013; and this ratio deteriorated to 294.4% as of June 2017. During this period, Pakistan’s gross external financing requirements also almost doubled to $17.2 billion from $9.1 billion.

    While responding to deteriorating external sector situation, the finance ministry had said last week that “external borrowing is a routine and normal function of developing countries and Pakistan is no exception.”

    It had added that developing economies resort to borrowing to meet investment requirements, accelerate growth and create jobs. External borrowing is also necessitated to retire past debt, finance essential imports, build external buffers, and shore up external reserves to maintain external account sustainability in a global context.


    https://tribune.com.pk/story/1469896/nawaz-added-whopping-35b-pakistans-debt/
     
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  4. El Sidd

    El Sidd SENIOR MEMBER

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    Holy retail that's a lot
     
  5. CriticalThought

    CriticalThought SENIOR MEMBER

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    Personally, I think the decline in exports is directly linked to failure of foreign policy. Amongst other reasons, countries become unwilling to trade with Pakistan because of toxic propaganda portraying Pakistan as evildoer on a range of issues. This narrative needs to be countered by a well thought foreign policy, and needs to be executed in a closely orchestrated manner by our diplomatic missions. My misgiving is that this guy was disqualified on pecuniary misconduct rather than this blatant dereliction of duty.
     
  6. Kash_Ninja

    Kash_Ninja FULL MEMBER

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    Not all of that debt is CPEC, a lot of it is from defaulting on other previous payments as well as projects which are financed by other institutions like the IMF

    Please stop embarrassing yourself and shut up, just stick to Indian posts or better yet Indian forums.
     
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  7. pakman12

    pakman12 FULL MEMBER

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    I wonder how much of those loans went into NS and Co's offshore bank accounts.
     
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  8. Syed.Ali.Haider

    Syed.Ali.Haider ELITE MEMBER

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    But who controls Pakistan's foreign policy, Sir?
     
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  9. pin gu

    pin gu FULL MEMBER

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    how much foreign investment he gathered for Pakistan during his time ?

    and what happend to Pakistan's rupee during his term ?
     
  10. The Sandman

    The Sandman ELITE MEMBER

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    No wonder indian and american media are squealing after his dismissal after all he was their best guy to take down Pakistan (never believed in such conspiracies but can't deny things i am seeing with my own eyes) this traitor and his family should be sent to jail i hope NAB won't disappoint us.
     
  11. CriticalThought

    CriticalThought SENIOR MEMBER

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    Unfortunately, the answer to your trick question is: Captn. Nawaz Sharif, in complete departure from all ethical and professional mores, is guilty of derelection of duty and treason at high seas, for letting this ship float at sea with no guidance and no command and control whatsoever.
     
  12. pin gu

    pin gu FULL MEMBER

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    its funny since I we grown up in same society while some one is in power and is his glory days everyone supporting him and backing his policies and when his time is over everyone suddenly change color and forget all the sacrifices he made for his country . and it seems demonizing time has began .
    to be fair I don't know much about Mr navaz sharif but if we want to connect him to foreign countires based on Pakistan relationship with other countries . I call him Chinese guy inside Pakistan because during his term Pakistan-China relationship changed a lot .

    personally I don't agree with this kind of judgment and its wrong on so many levels !
     
  13. The Sandman

    The Sandman ELITE MEMBER

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    I don't think anyone except his (blind, mental slave) supporters ever supported him everyone in Pakistan knows the guy is corrupt to the core every project they start is mired in corruption and mismanagement he and zardari most corrupt politician (NS is 2nd) in Pakistan these 2 guys are no different at all maybe people appreciated him because of the stability he brought to economy (tho now it's clear it was with the help of loans).

    About demonizing him his political history is full of him demonizing his opponents their character assassinations using their personal life's as a tool to demonize them this is nothing but makafat e amal (karma) him and his crooked family deserve every bit of this.

    No our relations with China has nothing to do with this crook CPEC's dream was envisioned in 1960's during Ayub Khan's era (aka the golden era of Pakistan) it was ZA Bhutto the then FM because of whom our relations with China improved a looot. Gawadar's construction started in 2000's Musharrafs Era Cpec would've been completed by now if it wasn't for those terrible years of 2008-2013 this crook have a habit of taking credit of other's work.
     
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  14. pin gu

    pin gu FULL MEMBER

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    as you said he is pretty corrupt and opportunist but there must be a way to show that to everyone even his supporters that the guy isn't good for Pakistan at all
    there must be a guideline that we can compare him to others . all I can see right now in PDF that there are sevral topics that leading to same direction with only purpose of destroy his legacy
    like loans - debts - corruptions - money laundering and ...
    why not show his real face ?
    like comparing rupee value before and after his term
    foreign investment comparing to other groups . and why just picking negative news in short period of time ?
     
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  15. ghazi52

    ghazi52 ELITE MEMBER

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    Acha chalta hoon duaon main yaad rakhna

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