Don't lose hope, pakistan debt is going to get there soon.

[ziaulislam]

I am hearing all the time that our debt is pretty bad ..but I am surprised people think that way

Today pakistan external debt is around 120b Dollars and it's GDP is around 350b$ (even if rupee devalues unless there is real decrease in growth or if deflation it will stay around in that range due to inflation)

This is around 32% external debt to GDP ratio


In 1998 it was 62% with debt being 38b$ and GDP 62b$

Pakistan was critical back then, untill mushi rescheduled all the debt in wake of 9/11 and the GDP doubled in next 10 yrs with debt lying flat

Pakistan external debt th n doubled from 2008-2018 but still we aren't at nawaz sharif target of 60%

Hopefully this time we will achieve it

 

[Dalit]

Now that bubba Nawaz is returning all will be fine.

 

[ziaulislam]

Now that bubba Nawaz is returning all will be fine.

Yes he will bring pakistan to 1999 situation when rupee doubled within a few weeks and country defaulted since it debt was twice pakistan current debt

 

[One_Nation]

Who can explain this to common people? Let them learn the hard way.

 

[R2D2]

Laying the new railway track will be the undoing of Pakistan with extra unnecessary debt.

 

[A Voice of Reason]

I am hearing all the time that our debt is pretty bad ..but I am surprised people think that way

Today pakistan external debt is around 120b Dollars and it's GDP is around 350b$ (even if rupee devalues unless there is real decrease in growth or if deflation it will stay around in that range due to inflation)

This is around 32% external debt to GDP ratio


In 1998 it was 62% with debt being 38b$ and GDP 62b$

Pakistan was critical back then, untill mushi rescheduled all the debt in wake of 9/11 and the GDP doubled in next 10 yrs with debt lying flat

Pakistan external debt th n doubled from 2008-2018 but still we aren't at nawaz sharif target of 60%

Hopefully this time we will achieve it

You realise that not all debt is the same. You cannot simply just look at the percentage of Debt to GDP.

Countries with good credit ratings can borrow at relatively low interest rates. Guess what countries with bad credit rates borrow at?

Borrowing at 22% interest is basically selling your future and that of your kids for short term relief. It has to be paid back. And even if you roll over the payments of some of this debt, the debt just grows and future payment requirements just get bigger.

Pakistan needs to repay $ 77.5 billion in external debt in three years

The major repayments in the next three years are to Chinese financial institutions, private creditors and Saudi Arabia. Pakistan`s large external debt comes with considerable repayment pressure.

www.zeebiz.com

 

[Abdul Rehman Majeed]

I am hearing all the time that our debt is pretty bad ..but I am surprised people think that way

Today pakistan external debt is around 120b Dollars and it's GDP is around 350b$ (even if rupee devalues unless there is real decrease in growth or if deflation it will stay around in that range due to inflation)

This is around 32% external debt to GDP ratio


In 1998 it was 62% with debt being 38b$ and GDP 62b$

Pakistan was critical back then, untill mushi rescheduled all the debt in wake of 9/11 and the GDP doubled in next 10 yrs with debt lying flat

Pakistan external debt th n doubled from 2008-2018 but still we aren't at nawaz sharif target of 60%

Hopefully this time we will achieve it

It is not a big issue.

Pakistan is at 110 position.

Doing much better than many of the developed nations including US & Europe.

List of countries by external debt - Wikipedia

en.wikipedia.org

 

[epebble]

It is not a big issue.

Pakistan is at 110 position.

Doing much better than many of the developed nations including US & Europe.

List of countries by external debt - Wikipedia

en.wikipedia.org

Pakistan's problem is not the size of the debt, which in the scheme of things is not really a large amount. For example, Apple, Google, Amazon and Microsoft all have daily fluctuations in their valuations much bigger than $120B. Elon Musk, Jeff Bezos, Bill Gates etc., have more than that in their personal wealth. The problem is inability to generate wealth. Pakistan's ability to generate tradeable surplus is practically nonexistent. Beyond export of unskilled labor and low-end textiles, there is really no comparative advantage in anything. Combine that with voracious appetite for petroleum and other fuels, essential imports etc., there is no way to balance the books. Not now, not in foreseeable future. That is the problem.

 

[Cheepek]

Debt can be managed by punishing the people, maintaining fiscal prudence & running a current account surplus; but what will you do to curb the addiction of dollars?

 

[epebble]

what will you do you curb the addiction of dollars?

Don't supply the dollars. Now that was not hard, was it? Fact is, the current hardship may give fillip to "Make in Pakistan" mindset and reduce import dependence. If you imagine Pakistan is all alone on a different planet, will they all die for lack of dollars? No, humans are adaptable.

 

[SoulSpokesman]

@Cheepek anna

Once you are running a current account surplus, I suppose the addiction to dollars will also go.

Regards

 

[Cheepek]

Don't supply the dollars. Now that was not hard, was it? Fact is, the current hardship may give fillip to "Make in Pakistan" mindset and reduce import dependence. If you imagine Pakistan is all alone on a different planet, will they all die for lack of dollars? No, humans are adaptable.

No, the measures are temporary. When Pakistan gets a little better, it will go back to its default state. Pakistan as a state is addicted to easy dollars.
That's the reason why Pakistan takes dollar loans on exorbitant rates and starts wagging it's tail to any project that brings inflow of dollars; however unviable that may be. It's not their stupidity that they sign bad contracts, it's their greed.

@Cheepek anna

Once you are running a current account surplus, I suppose the addiction to dollars will also go.

Regards

The current accounts surplus can only be maintained by suppressing demand inorganically, what'll happen if you let loose even a bit?

 

[epebble]

No, the measures are temporary. When Pakistan gets a little better, it will go back to its default state. Pakistan as a state is addicted to easy dollars.
That's the reason why Pakistan takes dollar loans on exorbitant rates and starts wagging it's tail to any project that brings inflow of dollars; however unviable that may be. It's not their stupidity that they sign bad contracts, it's their greed.
The current accounts surplus can only be maintained by suppressing demand inorganically, what'll happen if you let loose even a bit?

No going back to default state, unless you invent a time machine and set it back to 2001. Lenders can read the balance sheet and income statement. When giving a loan, it is the lender and not the borrower who calls the shots.

 

[Cheepek]

No going back to default state, unless you invent a time machine and set it back to 2001. Lenders can read the balance sheet and income statement. When giving a loan, it is the lender and not the borrower who calls the shots.

We shall see how it pans out this time, but getting quick easy dollars and surviving next few years is a pattern in Pakistan's history, atleast from the mid 80s(?)-90s.
I personally would not bet against an addict and their addiction.

 

[epebble]

I personally would not bet against an addict and their addiction.

Means nothing without a dealer. Just a lot of withdrawal symptoms and suffering. Extrapolate for a long time.