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PTI Will Pay $55 Billion in Debts From 2018-2023

313ghazi

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The PTI government will pay $55 billion in foreign debt payment during its five years tenure that ends in 2023, claimed the Minister for Information and Broadcasting Fawad Chaudhry.

In a tweet, the minister pointed out that the foreign debt payment was during PTI’s tenure is significantly higher compared to the debt payment of the PML-N government, which paid $27 billion in its tenure. He also revealed that Pakistan was going to pay $12.27 billion in the current fiscal year, whereas the payment for the next fiscal year would add up to $12.5 billion.


As per the data released by the State Bank of Pakistan, the external debt and liabilities reached $127 billion by the end of September 2021. The data shows an increase of $4.85 billion in the country’s external debt and liabilities during the first quarter of FY22. As a percentage of GDP, the amount adds up to 40.2 percent.


During the first quarter of the current fiscal year, foreign exchange reserves surged to $19.374 billion from $17.441 billion.


The cumulative debt and liabilities comprise Paris Club, the IMF loan, foreign exchange liabilities, Public Sector Enterprises (PSEs) guaranteed debt and non-guaranteed debt. It also includes banks borrowing, non-residential deposits, private sector guaranteed/non-guaranteed debt and foreign exchange and debt liabilities to direct investors.


Currently, the Pakistani economy is struggling to maintain growth as the current account deficit has grown significantly due to a growth in imports. The data from the State Bank of Pakistan shows that there has been a drastic increase in the deficit as it reached $1.91 billion in November 2021 compared to a surplus of $563 million in November 2020.

 

FuturePAF

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Hopefully the government creates a policy to incentivize more private sector FDI (investments not loans) particularly in sectors like mining. Commodities prices are increasing, especially Gold during the global economic downturn (as a hedge asset) and Pakistan literally has a gold mine (Reko Diq) that should be taken out of limbo and brought into productive use.

The petrochemical industry also needs be grown with a refinery in Karachi, and that needs to be incentivized too ASAP. so many products are a byproduct of petrochemicals, especially pharmaceuticals and plastics. If the TAPI pipeline is built it should be used to build up this industry and not given to the people as cheap fuel for cars.

The government needs to grow the economic pie, so that more tax revenue is coming in and the external debt does not hinder growth in other sectors like agriculture or modernization of industrial manufacturing as human capital development (which can earn money domestically in IT industry and Abroad through growing remittances)

reforms to speed up the courts, property rights, other things that improve the image of the country can help boost FDI, and need to be a laser focus of the government. With more FDI, the government can speed on the development programs planned before the IMF cuts and stay in power to keep pressing reforms and economic growth oriented governance. Foreign loans need to be refinanced to as low an interest rate as possible and that will require getting of the FATF grey list.
 
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Jungibaaz

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Whatever the case was with previous government and this government, the fact is that we have an absurdly high debt to GDP ratio, and a big chunk of that is owed externally and denominated in USD, meanwhile we have pitiful exports and still no real revival of FDI, it’s just remittances that keep us afloat. I had hoped that this would change by now, alas.
 

Pakistan Space Agency

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It's crazy how much debt the incompetent PTI Government has increased in just 3-years and it's not even the election year.

QuaterPeriodTotal (billion)
Q4Apr-Jun-2018$95.237
Q1Jul-Sept 2018$96.10
Q2Oct-Dec 2018$99.041
Q3Jan-Mar 2019$105.84
Q4Apr-Jun 2019$106.3
Q1Jul-Sept 2019$106.9
Q2Oct-Dec 2019$111.047
Q3Jan-Mar 2020$109.94
Q4Apr-Jun 2020$112.8
Q1Jul-Sept 2020$113.8
Q2Oct-Dec 2020$117.115
Q3Jan-Mar 2021$116.309
Q4Apr-Jun 2021$122.1
Q1Jul-Sep 2021$127
 

jupiter2007

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Whatever the case was with previous government and this government, the fact is that we have an absurdly high debt to GDP ratio, and a big chunk of that is owed externally and denominated in USD, meanwhile we have pitiful exports and still no real revival of FDI, it’s just remittances that keep us afloat. I had hoped that this would change by now, alas.

Right polices and regulations will bring things on right track.
We need Major improvement in Banking sectors, banking policies which apply to all Banks
Ease of doing business/ one window operation.
Improvement Agriculture production.
 

That Guy

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It's crazy how much debt the incompetent PTI Government has increased in just 3-years and it's not even the election year.

QuaterPeriodTotal (billion)
Q4Apr-Jun-2018$95.237
Q1Jul-Sept 2018$96.10
Q2Oct-Dec 2018$99.041
Q3Jan-Mar 2019$105.84
Q4Apr-Jun 2019$106.3
Q1Jul-Sept 2019$106.9
Q2Oct-Dec 2019$111.047
Q3Jan-Mar 2020$109.94
Q4Apr-Jun 2020$112.8
Q1Jul-Sept 2020$113.8
Q2Oct-Dec 2020$117.115
Q3Jan-Mar 2021$116.309
Q4Apr-Jun 2021$122.1
Q1Jul-Sep 2021$127
I really have had enough of your nonsense, so much so that it's forced me to log in after a very long time.

You have ZERO ideas how economics and debt work, so take my advice, and keep your mouth shut. It is infuriating to read some of the complete nonsense takes you and a few other....members (using polite language on purpose) have. The incompetence shown by some of the people on this forum is mind-boggling, as they can't be bothered to use a few critical thinking skills.

Most of the payments are being made on debt accumulated by PMLN and PPP governments. Most of the debt being accumulated is due to previous deals and loans that were taken by PMLN and PPP governments.

No matter which government came to power, or if the military took over, debt was going to skyrocket.

But of course, you're going to ignore all of this.

We won't have a complete picture of the debt that the PTI government took until after its term ends.
 
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AZ1

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wrong they have paid debt services means profit not the original debt . do not confuse us .
whatever we should thank nawaz and zardari for their services too even pay some $ billiom to their services as well
Whatever the case was with previous government and this government, the fact is that we have an absurdly high debt to GDP ratio, and a big chunk of that is owed externally and denominated in USD, meanwhile we have pitiful exports and still no real revival of FDI, it’s just remittances that keep us afloat. I had hoped that this would change by now, alas.
I know its not possible if somehow, we manage to reduce import bill defecit gap compare to our exports it will be all.

may be growing more cotton that we import to reduce $2 billion around every year along with some top high taxes on imported cars.
 

Pakistan Space Agency

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I really have had enough of your nonsense, so much so that it's forced me to log in after a very long time.

You have ZERO ideas how economics and debt work, so take my advice, and keep your mouth shut. It is infuriating to read some of the complete nonsense takes you and a few other....members (using polite language on purpose) have. The incompetence shown by some of the people on this forum is mind-boggling, as they can't be bothered to use a few critical thinking skills.

Most of the payments are being made on debt accumulated by PMLN and PPP governments. Most of the debt being accumulated is due to previous deals and loans that were taken by PMLN and PPP governments.

No matter which government came to power, or if the military took over, debt was going to skyrocket.

But of course, you're going to ignore all of this.

We won't have a complete picture of the debt that the PTI government took until after its term ends.
You and your gibberish nonsense as always.

So, this masterstroke to freeze Pakistani debt repayments in December 2001 until 2017 was PML-N's idea?

Pakistan - Paris Club Debt Rescheduled
13 December 2001

And, the PML-N Government was expected to make $24 billion in debt repayments between 2013-2018 with what? Mangoes?

... Similarly, the PML-N government had taken foreign loans of $42.4 billion in five years including $27 billion or 64% for budget support, according to the IPR. The last government had returned around $24 billion worth of foreign loans in five years. ...

Govt gets $33b in foreign loans

Now, if you have a functioning brain cell, use it. Otherwise, stay logged off.
 

313ghazi

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You and your gibberish nonsense as always.

So, this masterstroke to freeze Pakistani debt repayments in December 2001 until 2017 was PML-N's idea?

Pakistan - Paris Club Debt Rescheduled
13 December 2001

And, the PML-N Government was expected to make $24 billion in debt repayments between 2013-2018 with what? Mangoes?

... Similarly, the PML-N government had taken foreign loans of $42.4 billion in five years including $27 billion or 64% for budget support, according to the IPR. The last government had returned around $24 billion worth of foreign loans in five years. ...

Govt gets $33b in foreign loans

Now, if you have a functioning brain cell, use it. Otherwise, stay logged off.

So what money did the PMLN govt leave behind to help pay towards these debt payments which they knew were coming up?
 

Riz

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It's crazy how much debt the incompetent PTI Government has increased in just 3-years and it's not even the election year.

QuaterPeriodTotal (billion)
Q4Apr-Jun-2018$95.237
Q1Jul-Sept 2018$96.10
Q2Oct-Dec 2018$99.041
Q3Jan-Mar 2019$105.84
Q4Apr-Jun 2019$106.3
Q1Jul-Sept 2019$106.9
Q2Oct-Dec 2019$111.047
Q3Jan-Mar 2020$109.94
Q4Apr-Jun 2020$112.8
Q1Jul-Sept 2020$113.8
Q2Oct-Dec 2020$117.115
Q3Jan-Mar 2021$116.309
Q4Apr-Jun 2021$122.1
Q1Jul-Sep 2021$127
Tu na pichla data keun nhi share kia ? Sharam ati ha ??
 

Pakistan Space Agency

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So what money did the PMLN govt leave behind to help pay towards these debt payments which they knew were coming up?
Duh! What money were you expecting them to leave behind when they themselves were borrowing to pay off frozen debts, budgetary support debts and war cost debts during their tenure?
 

Jungibaaz

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Right polices and regulations will bring things on right track.
We need Major improvement in Banking sectors, banking policies which apply to all Banks
Ease of doing business/ one window operation.
Improvement Agriculture production.

Agree, a lot more besides. Debt is not a bad instrument if you’re using it for investment purposes and if the GDP return dwarfs the repayment, but in our case it has been and is still being used to fund twin deficits, for interest and principal payments, and on current expenditure as opposed to capital.

We’re still in a toxic cycle, those reforms everyone has been speaking about for decades are still absent. Every successive government has failed, without exception.
It's crazy how much debt the incompetent PTI Government has increased in just 3-years and it's not even the election year.

QuaterPeriodTotal (billion)
Q4Apr-Jun-2018$95.237
Q1Jul-Sept 2018$96.10
Q2Oct-Dec 2018$99.041
Q3Jan-Mar 2019$105.84
Q4Apr-Jun 2019$106.3
Q1Jul-Sept 2019$106.9
Q2Oct-Dec 2019$111.047
Q3Jan-Mar 2020$109.94
Q4Apr-Jun 2020$112.8
Q1Jul-Sept 2020$113.8
Q2Oct-Dec 2020$117.115
Q3Jan-Mar 2021$116.309
Q4Apr-Jun 2021$122.1
Q1Jul-Sep 2021$127

The PTI government inherited a financial crisis on day one. They were forced to lever up and also go to the IMF. It’s unfair to blame them for that.

The failure to break the cycle is another matter, and they’ve failed just like every other government has.
 

That Guy

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You and your gibberish nonsense as always.

So, this masterstroke to freeze Pakistani debt repayments in December 2001 until 2017 was PML-N's idea?

Pakistan - Paris Club Debt Rescheduled
13 December 2001

And, the PML-N Government was expected to make $24 billion in debt repayments between 2013-2018 with what? Mangoes?

... Similarly, the PML-N government had taken foreign loans of $42.4 billion in five years including $27 billion or 64% for budget support, according to the IPR. The last government had returned around $24 billion worth of foreign loans in five years. ...

Govt gets $33b in foreign loans

Now, if you have a functioning brain cell, use it. Otherwise, stay logged off.
You literally just proved my fucken point, thanks.

If you can't even use your brain to realize that, then keep your mouth shut.
 

xyxmt

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Pakistan will never get out of this white men's debt cycle, they got you good.
you only pay interest while principle remains the same while you take new loan for your expenses adds to more interest payment next year and cycle continues
 

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