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SBP warns banks against default on sovereign loans

Wood

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That's exactly the reason why democracy is not fit for developing countries 😉
Haha.. so you want an military rule in Pakistan? That may have its own disadvantages. Truth is, there is no easy and obvious way out of poverty. There are plenty of dictatorships that are still poor for one reason or the other :azn:
 

Norwegian

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Haha.. so you want an military rule in Pakistan?
Pakistan never had a true military rule. All military rules had a parliament of sorts and basic democracy at the local body / provincial levels

Haha.. so you want an military rule in Pakistan? That may have its own disadvantages. Truth is, there is no easy and obvious way out of poverty. There are plenty of dictatorships that are still poor for one reason or the other :azn:
Chinese, Vietnamese, Singaporean one party dictatorships are not 😉
 

Wood

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Chinese, Vietnamese, Singaporean one party dictatorships are not 😉
China had Honk Kong and the Western naivety that a growing middle class in China would make it democratic. Singapore is a city state and Vietnam is still finding its way.

There are prosperous democratic countriesb like South Korea, Japan and Germany as well. It would not be fair to say that system of government will make all the difference.
 

Norwegian

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China had Honk Kong and the Western naivety that a growing middle class in China would make it democratic. Singapore is a city state and Vietnam is still finding its way.

There are prosperous democratic countriesb like South Korea, Japan and Germany as well. It would not be fair to say that system of government will make all the difference.
South Korea started economic reforms during military dictatorship, Japan during authoritarian monarchy, Germany after unification under the authoritarian Keiser. Also it depends on the culture. Democracy doesn't work in every culture
 

hydrabadi_arab

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This is easy to say when you are not trying to run for re-election in a developing country. If growth is not maintained, then the citizens of such countries will lose their livelihood. It is not an academic argument for internet message boards. :undecided:

Govt can try to increase direct tax, exports instead of relying on SBP printing machine which will lead to disaster like Lebanon etc
 

Wood

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Govt can try to increase direct tax, exports instead of relying on SBP printing machine which will lead to disaster like Lebanon etc
That is one way. But how big is your tax base? How much will the direct tax need to be increased? What will it mean for the consumption power of your middle class? What will a drop in consumption power mean for the economy in turn?

These questions can only be answered by the policy makers who have access to relevant data. Perhaps, the learned and informed policy makers hesitate to increase direct tax because they've already explored the idea.
 

Norwegian

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That is one way. But how big is your tax base? How much will the direct tax need to be increased? What will it mean for the consumption power of your middle class? What will a drop in consumption power mean for the economy in turn?

These questions can only be answered by the policy makers who have access to relevant data. Perhaps, the learned and informed policy makers hesitate to increase direct tax because they've already explored the idea.
Direct tax won't work in Pakistan unless govt starts paying salaries to everybody
 

hydrabadi_arab

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That is one way. But how big is your tax base? How much will the direct tax need to be increased? What will it mean for the consumption power of your middle class? What will a drop in consumption power mean for the economy in turn?

These questions can only be answered by the policy makers who have access to relevant data. Perhaps, the learned and informed policy makers hesitate to increase direct tax because they've already explored the idea.

Unlike India, major part of FBR tax is indirect. That means that government simply does not tax the upper class/rich like it supposed to. So there is potential there to increase direct tax. That will reduce CAD as these people love to consume everything imported.
 

Norwegian

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Unlike India, major part of FBR tax is indirect. That means that government simply does not tax the upper class/rich like it supposed to. So there is potential there to increase direct tax. That will reduce CAD as these people love to consume everything imported.
It doesn't matter what govt do, Pakistanis would be the very last people on earth paying their due share of taxes
 

313ghazi

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China had Honk Kong and the Western naivety that a growing middle class in China would make it democratic. Singapore is a city state and Vietnam is still finding its way.

There are prosperous democratic countriesb like South Korea, Japan and Germany as well. It would not be fair to say that system of government will make all the difference.

The single biggest factor between successful and failed democracies - the literacy rate.

Educated people can think beyond the end of their nose, they can learn skills, they can innovate, they can earn.

Uneducated people are sheep sat around waiting for grass and a bucket of water. Approximately 40% of our country can't even read or write. The other 60% who are literate - look at the value of that literacy. My kids could read and write at age 5 - it didn't make them intelligent functioning adults with only that ability. How much research or innovation comes out of our country? How many countries recognise the standards of our professional bodies? Very few. 45% of South Koreans hold a degree, 6% of Pakistani's do.

In a society which is either illiterate or under-educated, people can easily be manipulated, they cannot be relied upon to improve themselves, they don't see beyond tribe, clan, class etc. Democracy is a disaster in Pakistan. We need to function like a business. We need qualified people to run the different parts of our country - we need targets and goals set, we need people to be held accountable by their intellectual peers or seniors. If my IT minister cannot use email - how TF is he going to forward the agenda of IT in my country? If we have a Transport Minister who's only ever known being chauffered in Daddys Landcruiser - what is he going to know of public transport? The Civil service babus can tell him what they like and he will nod his head.

I don't care if this body of people are elected or selected - as long as their measured by their performance and replaced accordingly.

I live in the UK, we have democracy, it's a shitshow. We'd swap it for a competent govt right now.
 

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