Bangladesh Borrowing to send economy roaring

[bluesky]

When you start borrowing from overseas lenders for infrastructure projects then it all goes down hill from that point. Pakistan had some good investments under Build operate transfer procedure and then some very bad investments like Orange line project and mtro bus scheme. On top of repaying debt repayment we also have to pay billions in subsidy to just operate the bloody thing.

In essence, there is no free lunch. Every country must develop with its own initiatives, trained manpower and industrialization step by step taking a very long time. Less borrowing and more industrial development through many decades may be the clue.

Please note that all the developed countries of today developed themselves at a time when loan shark companies like IMF or WB were absent. Every country developed with its own efforts. But, then things started to change after WWll, many loan sharks started this lending business that caused the poor countries to go limping.

Pakistan was doing well during the time of Ayub Khan. There were foreign involvements but many basic industries were built at that time. This stopped somehow and I find it very strange that the GoP went after easy foreign money to build infrastructures that did not pay dividends.

BD is exactly following the same footsteps of Pakistan. It is unable to build any industry by its own people. But, the money borrowed yesterday will have to be paid back on the day after tomorrow.

 

[UKBengali]

This is exactly what I have been telling our BD people. But led by @UKBengali, they always refute my assertions though the amount of present borrowing is already $97 billion.

@UKBengali wants a bullet train at a cost of $16 billion of borrowed money and @Bilal9 asking for $6 billion credit to build another east-west connection below the Padma riverbed. They really think it is development!!

Our PDF brats will shortly know what really is IMF/ WB's positive reaction when BD will be paying $6 billion every year to these international Money Sharks.

Last year, BD paid back $1.9 billion including interest. This year, I expect the figure to be at least $2.5 billion. Today, the Loan Sharks give a positive rating to BD because our govt wants it that way.

At a time when BD is unable to pay back the money, they will change their tune. Instead of saying 6.5% growth, they will be saying 1% negative growth.

This thing has been happening throughout the world. These loan sharks lure the illiterate politicians of a developing country with cheap money and high growth forecast. This is how they stop a country from developing by itself.

Bangladesh is solidly in its trap.

BD hardly borrows any money from World Bank or IMF.

It’s main sources of external finance are ADB, JICA, Russia and China.

Nawaz Sharief and his cronies used to feed Pakistan same phudu Khata that briwing will roar our economy to new heights. It did take us to new heights only to come down crashing like a rock. IMF and World Bank will help you with borrowing and give positive review bcz they obviously are lenders and which lender will give you a bad review if you borrow on their terms. Debt driven growth is a curse and endless cycle.

Dude, BD is turning into an export economy that started off with garments and now going slowly also going into electronics, pharma, IT etc.

Last fiscal it exported 40 billion US dollars worth of goods and services and the fast pace of growth is expected to continue.

Bangladesh and Pakistan are totally different and so pointless comparing the two.

 

[Pandora]

BD hardly borrows any money from World Bank or IMF.

It’s main sources of external finance are ADB, JICA, Russia and China.


Dude, BD is turning into an export economy that started off with garments and now going slowly also going into electronics, pharma, IT etc.

Last fiscal it exported 40 billion US dollars worth of goods and services and the fast pace of growth is expected to continue.

Bangladesh and Pakistan are totally different and so pointless comparing the two.

Carry on soldier it aint our buisness any ways. Bangaldesh will learn its effect soon. Artifical regulation of currency via pumping of foreign debt will destroy everything. There is not one but many examples first being sirilanka second being pakistan you can be third or not upto your policy makers.

 

[Rusty2]

The only thought I had is that when Pakistan borrows money

Certain BD and Indians posters be like: HAH BEGGERS
But when their own country borrows money......

All of our countries have borrowed money, all of our countries have gone to IMF. To point score on borrowing just means you don't the IQ to make any legitimate criticism.

 

[Maira La]

but I think you understand the difference in nature between changing "Calcutta to Kolkata", "Bangalore to Bengaluru" or even "Gurgaon to Gurugram" etc

Not really the same case for Chittagong. Chittagong is not a British bastardization of the word Chattogram. The name Chittagong most likely evolved from a centuries old Arab or Arakanese name for the region.

 

[UKBengali]

Carry on soldier it aint our buisness any ways. Bangaldesh will learn its effect soon. Artifical regulation of currency via pumping of foreign debt will destroy everything. There is not one but many examples first being sirilanka second being pakistan you can be third or not upto your policy makers.

If it makes you feel better then think BD is no different.

 

[Bilal9]

When you start borrowing from overseas lenders for infrastructure projects then it all goes down hill from that point. Pakistan had some good investments under Build operate transfer procedure and then some very bad investments like Orange line project and mtro bus scheme. On top of repaying debt repayment we also have to pay billions in subsidy to just operate the bloody thing.

I saw videos on Lahore Orange line Metro and seems it is operating normally. What is the level of subsidy being given to it?

Any other projects like Metro bus where subsidies are a major component of operations?

I know overseas transport companies and their agents (i.e. JICA) taut improvements and less time lost in commutes as less money and productivity lost, but what are Pakistan's experience in this regard?

Dhaka situation is much more chaotic and crowded than say, Lahore, or Kolkata. Unplanned urban expansion and the chokehold of the bus mafia in Dhaka means the suffering of commuters is much more intense than cities like Kolkata or Lahore.

Kolkata was lucky that they were able to export their crowds to other cities in India for jobs, but they also introduced metro very early (1970's) per a British plan from the 1920's. Construction was mostly cut-and-cover in the early years which was a lot cheaper than tunneling.

Kolkata also boasted a tram system which was at first horse drawn in the 1880's, later electrified in the turn of the century.

These two things, trams and metro, saved Kolkata in my opinion as far as traffic chaos.

So - public transport, even if moderately subsidized, cannot be called a bad investment. Even in Japan, Metro and suburban commuter rail companies (mostly privatized), hardly make any money and depend on subsidy from city and central govts.

Not really the same case for Chittagong. Chittagong is not a British bastardization of the word Chattogram. The name Chittagong most likely evolved from a centuries old Arab or Arakanese name for the region.

I think the Arakanese name for Chittagong was Tsi-Tse-Gong (they invaded it at one time) and don't know the origin of that name either, probably came after the Arab name Shaat' Ganj (Ganj was an Arab trader name for Ganges or Ganga and Shaat means delta). They probably thought Karnaphuli was a branch of the Ganges...

 

[Pandora]

I saw videos on Lahore Orange line Metro and seems it is operating normally. What is the level of subsidy being given to it?

Any other projects like Metro bus where subsidies are a major component of operations?

I know overseas transport companies and their agents (i.e. JICA) taut improvements and less time lost in commutes as less money and productivity lost, but what are Pakistan's experience in this regard?

Dhaka situation is much more chaotic and crowded than say, Lahore, or Kolkata. Unplanned urban expansion and the chokehold of the bus mafia in Dhaka means the suffering of commuters is much more intense than cities like Kolkata or Lahore.

Kolkata was lucky that they were able to export their crowds to other cities in India for jobs, but they also introduced metro very early (1970's) per a British plan from the 1920's. Construction was mostly cut-and-cover in the early years which was a lot cheaper than tunneling.

Kolkata also boasted a tram system which was at first horse drawn in the 1880's, later electrified in the turn of the century.

These two things, trams and metro, saved Kolkata in my opinion as far as traffic chaos.

So - public transport, even if moderately subsidized, cannot be called a bad investment. Even in Japan, Metro and suburban commuter rail companies (mostly privatized), hardly make any money and depend on subsidy from city and central govts.


I think the Arakanese name for Chittagong was Tsi-Tse-Gong (they invaded it at one time) and don't know the origin of that name either, probably came after the Arab name Shaat' Ganj (Ganj was an Arab trader name for Ganges or Ganga and Shaat means delta). They probably thought Karnaphuli was a branch of the Ganges...

Lahore Metro train was an ill planned project. It was built by expensive commercial loans and capacity is not being fully utlised bcz route is just not busy enough. Lahore needed a Circular railway type project which would have touched all the populace never centre but PMLN wanted a show piece for elections. Modern metros are self sustaining trick is to build a network of stations and turn stations into commercial hubs. All modern day metro rail systems barely need any subsidy.

 

[bluesky]

Carry on soldier it aint our buisness any ways. Bangaldesh will learn its effect soon. Artifical regulation of currency via pumping of foreign debt will destroy everything. There is not one but many examples first being sirilanka second being pakistan you can be third or not upto your policy makers.

You said about our neighborhood countries and forgot to mention how all the Latin American countries' economies were ruined and now they cannot rise.

Bangladesh's economic future is in danger. It is borrowing in two hands as if there is no tomorrow.

 

[bluesky]

It’s main sources of external finance are ADB, JICA, Russia and China.

An excerpt from a march 27 Daily Star news:

"The majority of big projects now under construction will have no financial returns. So, the debt will increase further," said the economist.

Economist Dr Zahid Hussain said the debt surged in 2020 due to the Covid-19. Bangladesh in 2020 received around $ 2.0 billion from the International Monetary Fund (IMF) and other multilateral development partners, he said".
Now, about WB loans to BD:

"Bangladesh currently has the largest ongoing IDA program totaling over $14 billion. The World Bank was among the first development partners to support Bangladesh and has committed more than $35 billion in grants, interest-free, and concessional credits to the country since its Independence".

You are fond of lying all the time. A discussion should be based on truth but you push too hard with your lies that creates friction with others.

 

[Shotgunner51]

main sources of external finance are ADB, JICA, Russia and China

Perhaps most people would've chosen to believe a very different picture. I've seen absurd sayings like "we borrow from the west" and such.

 

[bluesky]

Perhaps most people would've chosen to believe a very different picture. I've seen absurd sayings like "we borrow from the west" and such.

This @UKBengali (@BDBengali) lies all the time very passionately with facts and figures.

 

[Shotgunner51]

facts and figures.

Other than multi-lateral orgs like WB-IDA, I think Japan is the biggest source of loan to BD by far, and that even excludes loan from ADB which is effectively financed and run by Japan. Perhaps China and Russia are next in line. I wonder why some people if not most have a picture of "western loan" or "western investment" in their mindset, quite intriguing.

 

[bluesky]

Other than multi-lateral orgs like WB-IDA, I think Japan is the biggest source of loan to BD by far, and that even excludes loan from ADB which is effectively financed and run by Japan. Perhaps China and Russia are next in line. I wonder why some people if not most have a picture of "western loan" or "western investment" in their mindset, quite intriguing.

please read post #40 to know what I said to answer lies written by @UKBengali.

 

[Shotgunner51]

please read post #40 to know what I said to answer lies written by @UKBengali.

Yes I've read that, in fact I've seen both of you on PDF for years, so I wish both of you can calm down, argue but don't fight. All the best my fellow PDFers!