FOOLS_NIGHTMARE
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This is a very good question. Not only IMF,Standards and poors,Finch,Moodys,ADB,world bank and others were of the same view.Our ratings improved and we were given the status of an Emerging Market economy from a Frontier one.what a load of s#it, But how much did mian's hakumat borrow from IMF? dollar dar the greatest economist as per IMF, how much did he borrow?
Zardari left the reserves at around 4B which was not enough to last two months.The good thing Darr did was to Stabilise the rupee and decrease the borrowing rate. With interest at 5.75% it gave the Govt the cushion to borrow less from our banks and focus on external debt.
The debt to GDP ratio was harmonised meaning external debts did not sting.Cut story short with an estimated GDP of 8% by 2020 by IMF a debt of 100B was easy to handle.But currently a GDP 0f 2.6% is a nightmare scenario.
Where the debt was utilised 1)Repayment of old debt 2)Building Reserves 3)Military compulsions 4) 10,000MW energy plants and roads 5)Balance of payments in imports.
Point no 5 is a failure as this is the main drain of our FOREX.