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Petrol prices incrased by Rs 3.20/liter

PakPrinciples

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So, Mr @muhammadhafeezmalik;
What's your point? Are you claiming Pakistan is the only Nation in the world, raising prices on petrol after the cost of crude went up?
As can be clearly see in the parts that I have highlighted that petroleum levy and sales tax are cumulatively around 36% of the price and not 60% as claimed by donkey eater @muhammadhafeezmalik .
No this is in response of undue criticism by PTI when PMLN was in government.
The idiot @muhammadhafeezmalik will be posting about increase in LNG in the near future.
He initially rejected summary for prices increase, instead he told them to increase the prices twice in a month so that way he won’t get negative reception from public.
I hate the PML-N and PPP but @muhammadhafeezmalik makes a legitimate point.

Why did Khan protest against PML-N's attempts to raise fuel prices in 2016?

Just a year earlier in 2015 he was demanding that gasoline be sold for Rs. 58/litre (Rs. 89/litre today when you adjust for inflation) but then he turns around raises the price of gasoline to well over Rs.100/liter now:
Imran Khan 'under fire' after Pakistan govt hikes petrol price by a staggering Rs 25

Mind you the PML-N tenure followed that of the PPP during which the the average inflation adjusted price of crude oil was ~$97/bbl and had been heavily subsidized for the public so the PML-N needed to raise those fuel prices to help pay down the debt accrued the years prior.
Historical Crude Oil Prices

Khan's opposition to it lead to unnecessary public pressure that may have increased Pakistan's debt burden.
 
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AZ1

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I hate the PML-N and PPP but @muhammadhafeezmalik makes a legitimate point.

Why did Khan protest against PML-N's attempts to raise fuel prices in 2016?

Just a year earlier in 2015 he was demanding that gasoline be sold for Rs. 58/litre (Rs. 89/litre today when you adjust for inflation) but then he turns around raises the price of gasoline to well over Rs.100/liter now:
Imran Khan 'under fire' after Pakistan govt hikes petrol price by a staggering Rs 25

Mind you the PML-N tenure followed that of the PPP during which the the average inflation adjusted price of crude oil was ~$97/bbl and had been heavily subsidized for the public so the PML-N needed to raise those fuel prices to help pay down the debt accrued the years prior.
Historical Crude Oil Prices

Khan's opposition to it lead to unnecessary public pressure that may have increased Pakistan's debt burden.
These point raised by hafeez is useless because pakistam became defaulter in 2018 due to their pmln policies then mifta ismail buy pia get steel mill for free type thing and now after looting and their leader out of the country they ask question why this and that. They have no shame a bit. Every govt depart destroyed just because they can get 1 plate briyani come here and behave like economist wouldnt make them.

As far as why IK did that.first he was in opposition so point scoring will keep going on its not west.

2016 has different econony and loan situation then 2018. Pmln took around $38 billion of loan so people quote IK 2013 statement wouldnt be valid.
 

Morpheus

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I hate the PML-N and PPP but @muhammadhafeezmalik makes a legitimate point.

Why did Khan protest against PML-N's attempts to raise fuel prices in 2016?

Just a year earlier in 2015 he was demanding that gasoline be sold for Rs. 58/litre (Rs. 89/litre today when you adjust for inflation) but then he turns around raises the price of gasoline to well over Rs.100/liter now:
Imran Khan 'under fire' after Pakistan govt hikes petrol price by a staggering Rs 25

Mind you the PML-N tenure followed that of the PPP during which the the average inflation adjusted price of crude oil was ~$97/bbl and had been heavily subsidized for the public so the PML-N needed to raise those fuel prices to help pay down the debt accrued the years prior.
Historical Crude Oil Prices

Khan's opposition to it lead to unnecessary public pressure that may have increased Pakistan's debt burden.
Don't forget to take into account how dollar was capped at fixed price. Which means any increase in oil price internationally shouldn't have any impact on local price. But apparently it did. You seeing how crappy the situation they created. Tax on top of low oil price, resulting in fuel price being high. Their policy of helping the poor was just ridiculous.
 

PakPrinciples

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Pmln took around $38 billion of loan so people quote IK 2013 statement wouldnt be valid.
The PTI has borrowed more than $26.2 Billion USD since they took office in August 2018 and took the most loans of any government in a single year within the history of Pakistan borrowing approximately $16 Billion USD in their first year in office.
In FY20: Govt gets over $13b in foreign loans

At that rate Khan and the PTI will borrow over $50 Billion USD during their 5 year term well over the $38 Billion you've stated the PML-N did.

Mind you this is the guy who told us that he'd commit suicide before taking a loan from the IMF:

As far as why IK did that.first he was in opposition so point scoring will keep going on its not west.
Then what's the difference between the PML-N, PPP and PTI?

People supported, and voted, for Khan based on his stances particularly since 2010. However he himself admits that he’s gone back on his promises and it's ok because it doesn't compromise on his "ideology".
Nothing wrong with U-turns if they don’t ‘compromise ideology’: PM

Is it an ideology of lies, manipulation and ineptitude like what was practiced by previous governments?

There are a lot of things that Khan and the PTI have done and will do that is NOT what the large majority supported or voted him in for, he can't control a treasonous anti-Pakistan judicial system infiltrated by PML-N and PPP loyalists and people are so desperate for good Muslim leadership and so deep into this mess now they’ve convinced themselves that the PTI is something they aren’t.

Don't forget to take into account how dollar was capped at fixed price. Which means any increase in oil price internationally shouldn't have any impact on local price. But apparently it did. You seeing how crappy the situation they created. Tax on top of low oil price, resulting in fuel price being high. Their policy of helping the poor was just ridiculous.
Why wouldn't an increase in international crude oil prices have an impact on local prices if the rupee was "capped at a fixed price"? The rupee was never fixed to the price of crude oil.

Even after you adjust for inflation what Khan demanded in 2015 equates to about Rs. 89/liter today whereas Khan has raised fuel prices to well over Rs. 100/liter now.

So what happened to the poor peoples of Pakistan that he was pleading on behalf of and campaigning for in 2015-2016 who would be overburdened by these price hikes?

There's no excuse here, Khan either lied and manipulated the public to get votes or he was simply clueless about Pakistan's economic realities which is even more frightening considering he had spent years running for PM and should have educated himself on this.

This isn't the only time he's done something like this.

For example in 2016 when Nawaz Sharif and the PML-N wanted to privatize the PIA due to the losses they were incurring it was Khan and the PTI that came out in support of protesting PIA employees desperate to keep their jobs, put food on their tables and what does Khan do now? Lays off almost 50% of its staff centralizing its office in Islamabad:
Imran Khan visits Karachi to join protesting PIA employees
PTI protesters against PIA privatisation face traders’ wrath
PIA to completely shift to Islamabad by June


He's not privatizing the airline but that's just semantics because what he's doing is pretty much what privatizing the PIA would have done anyways and what people, including PTI loyalists, were protesting against back in 2016.

So Why did the PTI never suggest a restructuring of the PIA when the PML-N were in power instead of protesting any attempts at making changes?

How much has he and his party lied about?

In terms of foreign exchange reserves Khan was in a significantly better position than Nawaz Sharif and the PML-N were when they began their government in 2013.

Just look at the SBP's own official publication regarding this:
SBP | Foreign Exchange Reserves Archive

Total liquid foreign exchange reserves in the country as of September 13, 2013 (when Zardari's term officially expired) was approximately $10.3 Billion USD by the time Nawaz Sharif was convicted and removed from office on July 28, 2017 it had risen to $20.2 Billion USD.

The country's total liquid FX reserves doubled under Nawaz Sharif by the time he was convicted of corruption in relation to the Avenfield case.

When Khan and the PTI took office, after the PML-N interim government lead by Shahid Khaqan Abbasi finished, the total liquid foreign exchange reserves in the country had dropped to $16.7 Billion USD but they were still 60% larger (inflation only accounted for a mere 5.2% of that growth) than what Nawaz Sharif and the PML-N started with in 2013.

So why are Khan and others going on about depleted foreign exchange reserves?

The PML-N did make HUGE mistakes one of them was their refusal to devalue the rupee which only widened the trade deficit by making exports less competitive and imports cheap while limiting foreign investments.

I suspect this was done to control inflation much like how Khan and the PTI government are going on an import spree of food stuffs after having lowered the nations interest rates, that were raised to reduce inflation rates, to help pay down debts he's accrued and make debts he's looking to take easier to manage:
Food-Choked Ports Are a Drag on Pakistan’s Exporters
Food import bill surges by whopping 52.16pc to $3.91b in six months
No let-up in food price hike despite massive imports

Personally I am more of a fan of Khan's approach particularly because those high interest rates, itself a sin, prevented people from taking loans to buy homes limiting new home construction that affects a host of related industries and made it difficult for businesses to borrow to expand or entrepreneurs from starting new businesses.
 

Syed1.

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The PTI has borrowed more than $26.2 Billion USD since they took office in August 2018 and took the most loans of any government in a single year within the history of Pakistan borrowing approximately $16 Billion USD in their first year in office.
In FY20: Govt gets over $13b in foreign loans

At that rate Khan and the PTI will borrow over $50 Billion USD during their 5 year term well over the $38 Billion you've stated the PML-N did.

Mind you this is the guy who told us that he'd commit suicide before taking a loan from the IMF:



Then what's the difference between the PML-N, PPP and PTI?

People supported, and voted, for Khan based on his stances particularly since 2010. However he himself admits that he’s gone back on his promises and it's ok because it doesn't compromise on his "ideology".
Nothing wrong with U-turns if they don’t ‘compromise ideology’: PM

Is it an ideology of lies, manipulation and ineptitude like what was practiced by previous governments?

There are a lot of things that Khan and the PTI have done and will do that is NOT what the large majority supported or voted him in for, he can't control a treasonous anti-Pakistan judicial system infiltrated by PML-N and PPP loyalists and people are so desperate for good Muslim leadership and so deep into this mess now they’ve convinced themselves that the PTI is something they aren’t.



Why wouldn't an increase in international crude oil prices have an impact on local prices if the rupee was "capped at a fixed price"? The rupee was never fixed to the price of crude oil.

Even after you adjust for inflation what Khan demanded in 2015 equates to about Rs. 89/liter today whereas Khan has raised fuel prices to well over Rs. 100/liter now.

So what happened to the poor peoples of Pakistan that he was pleading on behalf of and campaigning for in 2015-2016 who would be overburdened by these price hikes?

There's no excuse here, Khan either lied and manipulated the public to get votes or he was simply clueless about Pakistan's economic realities which is even more frightening considering he had spent years running for PM and should have educated himself on this.

This isn't the only time he's done something like this.

For example in 2016 when Nawaz Sharif and the PML-N wanted to privatize the PIA due to the losses they were incurring it was Khan and the PTI that came out in support of protesting PIA employees desperate to keep their jobs, put food on their tables and what does Khan do now? Lays off almost 50% of its staff centralizing its office in Islamabad:
Imran Khan visits Karachi to join protesting PIA employees
PTI protesters against PIA privatisation face traders’ wrath
PIA to completely shift to Islamabad by June


He's not privatizing the airline but that's just semantics because what he's doing is pretty much what privatizing the PIA would have done anyways and what people, including PTI loyalists, were protesting against back in 2016.

So Why did the PTI never suggest a restructuring of the PIA when the PML-N were in power instead of protesting any attempts at making changes?

How much has he and his party lied about?

In terms of foreign exchange reserves Khan was in a significantly better position than Nawaz Sharif and the PML-N were when they began their government in 2013.

Just look at the SBP's own official publication regarding this:
SBP | Foreign Exchange Reserves Archive

Total liquid foreign exchange reserves in the country as of September 13, 2013 (when Zardari's term officially expired) was approximately $10.3 Billion USD by the time Nawaz Sharif was convicted and removed from office on July 28, 2017 it had risen to $20.2 Billion USD.

The country's total liquid FX reserves doubled under Nawaz Sharif by the time he was convicted of corruption in relation to the Avenfield case.

When Khan and the PTI took office, after the PML-N interim government lead by Shahid Khaqan Abbasi finished, the total liquid foreign exchange reserves in the country had dropped to $16.7 Billion USD but they were still 60% larger (inflation only accounted for a mere 5.2% of that growth) than what Nawaz Sharif and the PML-N started with in 2013.

So why are Khan and others going on about depleted foreign exchange reserves?

The PML-N did make HUGE mistakes one of them was their refusal to devalue the rupee which only widened the trade deficit by making exports less competitive and imports cheap while limiting foreign investments.

I suspect this was done to control inflation much like how Khan and the PTI government are going on an import spree of food stuffs after having lowered the nations interest rates, that were raised to reduce inflation rates, to help pay down debts he's accrued and make debts he's looking to take easier to manage:
Food-Choked Ports Are a Drag on Pakistan’s Exporters
Food import bill surges by whopping 52.16pc to $3.91b in six months
No let-up in food price hike despite massive imports

Personally I am more of a fan of Khan's approach particularly because those high interest rates, itself a sin, prevented people from taking loans to buy homes limiting new home construction that affects a host of related industries and made it difficult for businesses to borrow to expand or entrepreneurs from starting new businesses.
PTI government has taken these loans to pay off some of the short term loans taken by PML-N. In fact about $20b worth of loans have been returned. Should have educated yourself before writing a novel of rubbish.

Also educate yourself about how PML-N left the country with a mountain of current account deficit $20b to be precise, while in the first 6 months of this fiscal year we have a surplus of $1b.


The total forex reserves held by the country are also at their highest levels in 3-4 years.
 

muhammadhafeezmalik

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PTI government has taken these loans to pay off some of the short term loans taken by PML-N. In fact about $20b worth of loans have been returned. Should have educated yourself before writing a novel of rubbish.

Also educate yourself about how PML-N left the country with a mountain of current account deficit $20b to be precise, while in the first 6 months of this fiscal year we have a surplus of $1b.


The total forex reserves held by the country are also at their highest levels in 3-4 years.
PTI promised in its election campaign that it will double the tax collection in first year and Pakistan will need additional loans to payback the previous loans.

PTI paid some $20 billion but it added another another 24 billion means it had took 44 billion dollars as debt.
 

AZ1

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PTI promised in its election campaign that it will double the tax collection in first year and Pakistan will need additional loans to payback the previous loans.

PTI paid some $20 billion but it added another another 24 billion means it had took 44 billion dollars as debt.
They have increase export even a little that will count. They have increase income filer and its not 5 years yet let the term complete then we will see but first ask ur leader to pay $6 billion rekodiq and then again ask to pay 800 arab rupees for making IPPs contract expensive than usual. 2018 pakistan went default if not for PTI.
 

AZ1

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The PTI has borrowed more than $26.2 Billion USD since they took office in August 2018 and took the most loans of any government in a single year within the history of Pakistan borrowing approximately $16 Billion USD in their first year in office.
In FY20: Govt gets over $13b in foreign loans

At that rate Khan and the PTI will borrow over $50 Billion USD during their 5 year term well over the $38 Billion you've stated the PML-N did.

Mind you this is the guy who told us that he'd commit suicide before taking a loan from the IMF:



Then what's the difference between the PML-N, PPP and PTI?

People supported, and voted, for Khan based on his stances particularly since 2010. However he himself admits that he’s gone back on his promises and it's ok because it doesn't compromise on his "ideology".
Nothing wrong with U-turns if they don’t ‘compromise ideology’: PM

Is it an ideology of lies, manipulation and ineptitude like what was practiced by previous governments?

There are a lot of things that Khan and the PTI have done and will do that is NOT what the large majority supported or voted him in for, he can't control a treasonous anti-Pakistan judicial system infiltrated by PML-N and PPP loyalists and people are so desperate for good Muslim leadership and so deep into this mess now they’ve convinced themselves that the PTI is something they aren’t.



Why wouldn't an increase in international crude oil prices have an impact on local prices if the rupee was "capped at a fixed price"? The rupee was never fixed to the price of crude oil.

Even after you adjust for inflation what Khan demanded in 2015 equates to about Rs. 89/liter today whereas Khan has raised fuel prices to well over Rs. 100/liter now.

So what happened to the poor peoples of Pakistan that he was pleading on behalf of and campaigning for in 2015-2016 who would be overburdened by these price hikes?

There's no excuse here, Khan either lied and manipulated the public to get votes or he was simply clueless about Pakistan's economic realities which is even more frightening considering he had spent years running for PM and should have educated himself on this.

This isn't the only time he's done something like this.

For example in 2016 when Nawaz Sharif and the PML-N wanted to privatize the PIA due to the losses they were incurring it was Khan and the PTI that came out in support of protesting PIA employees desperate to keep their jobs, put food on their tables and what does Khan do now? Lays off almost 50% of its staff centralizing its office in Islamabad:
Imran Khan visits Karachi to join protesting PIA employees
PTI protesters against PIA privatisation face traders’ wrath
PIA to completely shift to Islamabad by June


He's not privatizing the airline but that's just semantics because what he's doing is pretty much what privatizing the PIA would have done anyways and what people, including PTI loyalists, were protesting against back in 2016.

So Why did the PTI never suggest a restructuring of the PIA when the PML-N were in power instead of protesting any attempts at making changes?

How much has he and his party lied about?

In terms of foreign exchange reserves Khan was in a significantly better position than Nawaz Sharif and the PML-N were when they began their government in 2013.

Just look at the SBP's own official publication regarding this:
SBP | Foreign Exchange Reserves Archive

Total liquid foreign exchange reserves in the country as of September 13, 2013 (when Zardari's term officially expired) was approximately $10.3 Billion USD by the time Nawaz Sharif was convicted and removed from office on July 28, 2017 it had risen to $20.2 Billion USD.

The country's total liquid FX reserves doubled under Nawaz Sharif by the time he was convicted of corruption in relation to the Avenfield case.

When Khan and the PTI took office, after the PML-N interim government lead by Shahid Khaqan Abbasi finished, the total liquid foreign exchange reserves in the country had dropped to $16.7 Billion USD but they were still 60% larger (inflation only accounted for a mere 5.2% of that growth) than what Nawaz Sharif and the PML-N started with in 2013.

So why are Khan and others going on about depleted foreign exchange reserves?

The PML-N did make HUGE mistakes one of them was their refusal to devalue the rupee which only widened the trade deficit by making exports less competitive and imports cheap while limiting foreign investments.

I suspect this was done to control inflation much like how Khan and the PTI government are going on an import spree of food stuffs after having lowered the nations interest rates, that were raised to reduce inflation rates, to help pay down debts he's accrued and make debts he's looking to take easier to manage:
Food-Choked Ports Are a Drag on Pakistan’s Exporters
Food import bill surges by whopping 52.16pc to $3.91b in six months
No let-up in food price hike despite massive imports

Personally I am more of a fan of Khan's approach particularly because those high interest rates, itself a sin, prevented people from taking loans to buy homes limiting new home construction that affects a host of related industries and made it difficult for businesses to borrow to expand or entrepreneurs from starting new businesses.
Ok it will be useless to argue since PTI fault is not fixing the country in 2 year and yeah what is the difference between a party looting the country (pmln and ppp) and a party trying to save the country(pti).

Better next time vote for PPP and moojan karo
 

Syed1.

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PTI promised in its election campaign that it will double the tax collection in first year and Pakistan will need additional loans to payback the previous loans.

PTI paid some $20 billion but it added another another 24 billion means it had took 44 billion dollars as debt.
Bring proof paindu
 

muhammadhafeezmalik

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They have increase export even a little that will count. They have increase income filer and its not 5 years yet let the term complete then we will see but first ask ur leader to pay $6 billion rekodiq and then again ask to pay 800 arab rupees for making IPPs contract expensive than usual. 2018 pakistan went default if not for PTI.
PMLN didn't come up with the idea of IPPs. These were set-up during 1994-1996 under PPP and renegotiated by Musharraf in 2002 and fuel was guaranteed by government, plants of small capacity were installed during 2005-2007, than RPPs were installed in last PPP government. PMLN presented tough opposition to these agreements. PMLN set up government owned efficient plants with cheaper fuel, large capacity.

Capacity charges for government owned plants would go the government from the government, government can pass-on this to the public.

Price of electricity was increased in recent years because this government is running the inefficient plants on expensive fuel and paying capacity charge to efficient government owned plants. God knows why??

 

Patriot forever

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The PTI has borrowed more than $26.2 Billion USD since they took office in August 2018 and took the most loans of any government in a single year within the history of Pakistan borrowing approximately $16 Billion USD in their first year in office.
In FY20: Govt gets over $13b in foreign loans

At that rate Khan and the PTI will borrow over $50 Billion USD during their 5 year term well over the $38 Billion you've stated the PML-N did.

Mind you this is the guy who told us that he'd commit suicide before taking a loan from the IMF:



Then what's the difference between the PML-N, PPP and PTI?

People supported, and voted, for Khan based on his stances particularly since 2010. However he himself admits that he’s gone back on his promises and it's ok because it doesn't compromise on his "ideology".
Nothing wrong with U-turns if they don’t ‘compromise ideology’: PM

Is it an ideology of lies, manipulation and ineptitude like what was practiced by previous governments?

There are a lot of things that Khan and the PTI have done and will do that is NOT what the large majority supported or voted him in for, he can't control a treasonous anti-Pakistan judicial system infiltrated by PML-N and PPP loyalists and people are so desperate for good Muslim leadership and so deep into this mess now they’ve convinced themselves that the PTI is something they aren’t.



Why wouldn't an increase in international crude oil prices have an impact on local prices if the rupee was "capped at a fixed price"? The rupee was never fixed to the price of crude oil.

Even after you adjust for inflation what Khan demanded in 2015 equates to about Rs. 89/liter today whereas Khan has raised fuel prices to well over Rs. 100/liter now.

So what happened to the poor peoples of Pakistan that he was pleading on behalf of and campaigning for in 2015-2016 who would be overburdened by these price hikes?

There's no excuse here, Khan either lied and manipulated the public to get votes or he was simply clueless about Pakistan's economic realities which is even more frightening considering he had spent years running for PM and should have educated himself on this.

This isn't the only time he's done something like this.

For example in 2016 when Nawaz Sharif and the PML-N wanted to privatize the PIA due to the losses they were incurring it was Khan and the PTI that came out in support of protesting PIA employees desperate to keep their jobs, put food on their tables and what does Khan do now? Lays off almost 50% of its staff centralizing its office in Islamabad:
Imran Khan visits Karachi to join protesting PIA employees
PTI protesters against PIA privatisation face traders’ wrath
PIA to completely shift to Islamabad by June


He's not privatizing the airline but that's just semantics because what he's doing is pretty much what privatizing the PIA would have done anyways and what people, including PTI loyalists, were protesting against back in 2016.

So Why did the PTI never suggest a restructuring of the PIA when the PML-N were in power instead of protesting any attempts at making changes?

How much has he and his party lied about?

In terms of foreign exchange reserves Khan was in a significantly better position than Nawaz Sharif and the PML-N were when they began their government in 2013.

Just look at the SBP's own official publication regarding this:
SBP | Foreign Exchange Reserves Archive

Total liquid foreign exchange reserves in the country as of September 13, 2013 (when Zardari's term officially expired) was approximately $10.3 Billion USD by the time Nawaz Sharif was convicted and removed from office on July 28, 2017 it had risen to $20.2 Billion USD.

The country's total liquid FX reserves doubled under Nawaz Sharif by the time he was convicted of corruption in relation to the Avenfield case.

When Khan and the PTI took office, after the PML-N interim government lead by Shahid Khaqan Abbasi finished, the total liquid foreign exchange reserves in the country had dropped to $16.7 Billion USD but they were still 60% larger (inflation only accounted for a mere 5.2% of that growth) than what Nawaz Sharif and the PML-N started with in 2013.

So why are Khan and others going on about depleted foreign exchange reserves?

The PML-N did make HUGE mistakes one of them was their refusal to devalue the rupee which only widened the trade deficit by making exports less competitive and imports cheap while limiting foreign investments.

I suspect this was done to control inflation much like how Khan and the PTI government are going on an import spree of food stuffs after having lowered the nations interest rates, that were raised to reduce inflation rates, to help pay down debts he's accrued and make debts he's looking to take easier to manage:
Food-Choked Ports Are a Drag on Pakistan’s Exporters
Food import bill surges by whopping 52.16pc to $3.91b in six months
No let-up in food price hike despite massive imports

Personally I am more of a fan of Khan's approach particularly because those high interest rates, itself a sin, prevented people from taking loans to buy homes limiting new home construction that affects a host of related industries and made it difficult for businesses to borrow to expand or entrepreneurs from starting new businesses.
Bro I will try to explain to you some of the misunderstandings you have regarding economy. Parties like PPP and PLMN use this lack of knowledge to further their propaganda.

1) First thing you mentioned is borrowing. Keep in mind the figures you posted for Plmn are after deducting their loans paid back, while from pti figure that is not deducted. From the link of article you posted.

'Out of the $29.2 billion, $19.2 billion was used to repay the maturing external debt and the remaining balance was added to the external public and publicly guaranteed debt'.

Screenshot_20210126-124736.png




When we talk about acquiring loans Current Account (expenses vs income) is the most important factor. When Khan said he will make Pakistan stand on its feet and not dependant on foreign loans, having your income more than your expenses is what he meant. This CAD is the reason why we end up going to IMF again and again. He is well on track to achieve that.
Which was reduced from $19.9b in FY 2018 to $7b in FY2019 to $3b in FY 20and now for the first half of FY2021 we have a surplus of $1b.

2) 2nd point you mentioned is privatize PIA. I will just ask you simple question, who will buy PIA when it is in default and incurring billions in losses? You will end up with deals like acquire PIA and get Steel Mills for free, like in PLMN tenure. At the end of the day all that counts is will PTI succeed in doing what PLMN failed to do (instead of making it 10 times worse like PLMN did with PIA and Steel Mills). Opposition said this and that is just excuses. What needs to be done has to be done.

3) 3rd point you mentioned is level of reserves when PLMN took over and PTI took over (First thing is you need to differentiate between SBP reserves and total reserves).
Now elaborating on point. Reserve numbers suggest liquidity in system. As in against how much is the debt payment due that year, how many months can the reserve sustain you in terms of imports etc. When PLMN took over the reserves were enough to sustain Pakistan for more than a year (gap in income and expenses) and in case of foreign debt payment for 2 years minimum. When PTI took over the reserves were able to sustain us for 3 months given we were running a CAD of $2b per month. The CAD was projected at $24b and debt payment soared to more than $10b (principal +interest). We were in a liquidity crisis as foreign lending institutions refused to lend us more money unless we bring in reforms under IMF program to curtail our CAD. I hope you do understand my point, reserve numbers are subjective (right now our reserves are not much but our CAD is managed so there is little strain on us and we have sufficient liquidity). Now we basically need IMF to unlock cheaper modes of financing to roll over our debt and pay off interest payment, not to run our day to day expenses. (Which is also very crucial, if we don't do that we will default but the loan requirement is substantially less as compared to 2018).

4) 4th point you mentioned is petrol prices. You took into account inflation but fail to take into account the devaluation in rupee when it comes to crude pricing. $1 crude that cost government 100Rs now costs government 160 rupees. Do the math with oil prices than and now. If you remember when crude prices went up shorty after PTI took over their tax collection % was lower than Plmn. As the crude prices increase share of government taxes will fall accordingly as you recently saw with more than 15% increase in Brent consumer prices went up by just 2-3%. Infact in the last few months energy prices has soared by more than 30% and consumer prices by less than 10%. You need to maintain prices in domestic market in a reasonable range, sudden huge decreased and increases will have devastating consequences for local economy (not to mention our whole refineries and supply chains are not geared for near real time price parity).


5) You mentioned control inflation by increasing imports. You misunderstood one aspect, increasing imports of goods with subsidized dollar vs imports with a free market dollar. There is a day and night difference, with market determined dollar rate their is no influx of cheap goods ( as in case of subsidized dollar ) so it has little to no impact on inflation.
What the government has done with food imports is correct the gap between supply and demand to neutralize artificial inflation. It has effectively neutered the sugar mafia with this move.
Government can afford to do this as it is running a current account surplus, but it is not ideal. But linking it with to control inflation like Plmn is flawed (PLMN policy of flooding the market with cheap subsidized imports to increase consumption and inflate GDP while keeping inflation low).


All these points require separate posts but it will be too long, if you have counter arguments feel free to share them so that we can have a constructive debate. The better the people understand the less prone they are to propaganda.
 
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Patriot forever

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PMLN didn't come up with the idea of IPPs. These were set-up during 1994-1996 under PPP and renegotiated by Musharraf in 2002 and fuel was guaranteed by government, plants of small capacity were installed during 2005-2007, than RPPs were installed in last PPP government. PMLN presented tough opposition to these agreements. PMLN set up government owned efficient plants with cheaper fuel, large capacity.

Capacity charges for government owned plants would go the government from the government, government can pass-on this to the public.

Price of electricity was increased in recent years because this government is running the inefficient plants on expensive fuel and paying capacity charge to efficient government owned plants. God knows why??

Enough with the propaganda bro.

Pakistan energy mix, I think this is self explanatory.

1611654151574.png


Secondly the IPP policy was introduced earlier but no one told them to sign expensive flawed contracts with ROI upto 30% on top of state backed commercial loans. It was daylight robbery and incompetence in Plmn term.
 

muhammadhafeezmalik

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Enough with the propaganda bro.

Pakistan energy mix, I think this is self explanatory.

View attachment 710581

Secondly the IPP policy was introduced earlier but no one told them to sign expensive flawed contracts with ROI upto 30% on top of state backed commercial loans. It was daylight robbery and incompetence in Plmn term.
The tariffs were awarded to most plants between 1994-1996 and between 2005-2007. Go through NEPRA link I have provided.
 

Patriot forever

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The tariffs were awarded to most plants between 1994-1996 and between 2005-2007. Go through NEPRA link I have provided.
Bro what about the IPP's under 2015 policy? Enough of propaganda.

COMMISSIONED IPPs
Sr. No.
Project
Location
Gross/
Installed Capacity
(MW)​
Prior to 1994 Power Policy:
1
Hub Power Project, (HUBCO)
Tehsil Hub, District Lasbela, Baloshistan​
1292​
Under 1994 Power Policy:
2
Lalpir Limited
Mehmood Kot, Muzaffargarh, Punjab​
362​
3
Pak Gen. (Pvt) Limited
Mehmood Kot, Muzaffargarh, Punjab​
365​
4
Altern Energy Limited
Fateh Jang, Attock​
31​
5
Fauji Kabirwala Power Company
Kabirwala, District Khanewal​
157​
6
Gul Ahmed Energy Ltd. (GAEL)
Korangi Industrial Township, Karachi​
136​
7
Habibullah Coastal Power (Pvt) Co.
Quetta​
140​
8
Japan Power Generation (Pvt) Limited
17 km Jia Bagga, Off Raiwind Road, Lahore​
120​
9
Kohinoor Energy Limited
Raiwind-Manga Road; Near Lahore​
131​
10
Liberty Power Project
Daharki, Distt. Ghotki, Sindh​
235​
11
Rousch (Pakistan) Power Limited
Abdul Hakeem Barrage, District Khanewal​
450​
12
Saba Power Company Limited
Farouqabad, Shiekhupura, Punjab​
134​
13
Southern Electric Power Company Limited
Raiwind Lahore, Punjab​
117​
14
Tapal Energy Limited
District West, Karachi​
126​
15
Uch Power Limited
Dera Murad Jamali, District Nasirabad, Balochistan​
586​
16
Davis Energen Power Project
Jhang, Punjab​
10.5​
17
Kot Addu Power Company Limited (KAPCO)*
Kot Addu District, Muzaffargarh, Punjab​
1638​
Total (1994 Power Policy)
6031
Under 1995 Policy
18
New Bong Escape Hydropower Project
7.5 km Downstream Mangla Dam, Azad Jammu & Kashmir​
84​
Under 2002 Power Policy
19
Attock Gen Limited
Rawalpindi, Punjab​
165​
20
Atlas Power Limited
Sheikhupura, Punjab​
225​
21
Engro Energy Limited
Qadirpur, Sindh​
227​
22
Saif Power Limited
Sahiwal, Punjab​
229​
23
Halmore Power Generation Company Limited
Bhikki District Sheikhupura- Punjab​
225​
24
Hub Power Project - Narowal
Narowal - Punjab​
220​
25
Liberty Power Tech
Faisalabad (near M-3 Industrial Estate)​
200​
26
Nishat Power Limited
Near Lahore​
200​
27
Nishat Chunian Limited
Near Lahore​
200​
28
Orient Power Company Limited
Balloki, District Kasur, Punjab​
229​
29
Foundation Power Company (Daharki) Limited
Daharki, Sindh​
185​
30
Sapphire Electric Company Limited
Muridke, District Sheikhupura, Punjab​
225​
31
Uch-II Power Project
Dera Murad Jamali, Balochistan​
404​
32
Patrind Hydropower Project
Muzaffarabad AJK​
147​
33
Gulpur Hydropower Project
Poonch River, Gulpur, AJ&K​
102​
Total (1995 and 2002 Power Policy)
3267
Under 2015 Power Policy
34
Sahiwal Coal Power ProjectQadarabad, Sahiwal
1320
35
Port Qasim Coal Power ProjectPort Qasim, Karachi
1320
36
RLNG based Haveli Bahadur Shah ProjectHaveli Bahadur Shah, Jhang
1230
37
RLNG based Bhikki Power ProjectBhikki, Sheikhupura
1180
38
RLNG based BallokiBalloki, Kasur
1223
39
Engro Thar Coal Power & Mine ProjectThar
660
40
China Power Hub Generation Company (Private) LimitedHub, Baluchistan
1320
Total (2015 Power Policy)
8253
GRAND TOTAL (1994+1995+2002+2015 Power Policies)
17,551



 

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