External debt, liabilities down by $1.3 billion in first half fiscal year 2015

[BetterPakistan]

Stock of external debt in April 2013, have a look
View attachment 200130

Govt breaches limit, adds $15.3bn to external debt

- File photo
ISLAMABAD: The government on Friday confirmed to have added about $15.3 billion to the country’s external debt, violating prudent borrowing limits under the Fiscal Responsibility and Debt Limitation Act (FRDLA) and promised to reduce public debt significantly by 2015-16.

This is part of Medium-Term Debt Management Strategy (MTDS 2013-14 to 2017-18) released here on Friday after conclusion of third review of the IMF programme in Dubai. “The public debt to GDP ratio is projected to be brought down to 55.2pc by 2015-16,” said the ministry of finance.

It said the debt ratio was expected to be around 52pc by end 2017-18 which would be well below the threshold of 60pc as mentioned in the FRDLA.

The MTDS said the country’s external debt was estimated to touch $72 billion (Rs7.202 trillion) at the end of this fiscal year on June 30 against $57bn (Rs5.7tr at current exchange rate) same period last year.

It said the external debt stood at 24.9pc of GDP on June 30, 2013 which had now gone up to 27.7pc of GDP by end of this year.

 

[WishLivePak]

Do anyone knows here that what was Pakistan total external debt when this govt arrived in? Govt added 15$ billion in external debt after arriving and reduced 1$ billion then what it should be considered? good? hell not

The thing is, when gov't came, rupee started depreciating.

If we bring back rupee-dollar value to end of Zardari regime, the debts will remain the same, but it'll be easier to pay back.

If my math serves right, a 10% rupee deprecation puts 6 trillion rupees of debt, assuming at start, debt was 60 trillion rupees.

As we pay our debt back, we are paying less dollars back.

 

[BetterPakistan]

The thing is, when gov't came, rupee started depreciating.

If we bring back rupee-dollar value to end of Zardari regime, the debts will remain the same, but it'll be easier to pay back.

If my math serves right, a 10% rupee deprecation puts 6 trillion rupees of debt, assuming at start, debt was 60 trillion rupees.

If you read the news above I have shared, you will understand something i am talking about here.

 

[SBD-3]

Govt breaches limit, adds $15.3bn to external debt

- File photo
ISLAMABAD: The government on Friday confirmed to have added about $15.3 billion to the country’s external debt, violating prudent borrowing limits under the Fiscal Responsibility and Debt Limitation Act (FRDLA) and promised to reduce public debt significantly by 2015-16.

This is part of Medium-Term Debt Management Strategy (MTDS 2013-14 to 2017-18) released here on Friday after conclusion of third review of the IMF programme in Dubai. “The public debt to GDP ratio is projected to be brought down to 55.2pc by 2015-16,” said the ministry of finance.

It said the debt ratio was expected to be around 52pc by end 2017-18 which would be well below the threshold of 60pc as mentioned in the FRDLA.

The MTDS said the country’s external debt was estimated to touch $72 billion (Rs7.202 trillion) at the end of this fiscal year on June 30 against $57bn (Rs5.7tr at current exchange rate) same period last year.

It said the external debt stood at 24.9pc of GDP on June 30, 2013 which had now gone up to 27.7pc of GDP by end of this year.

The government said it had violated the requirements of the FRDLA. It said the government was required to reduce revenue deficit to zero by June 30, 2008 and then maintain revenue surplus but the revenue balance had been running in the negative since 2005.

And the point being? What I have shared is from official public data. Can you share the source document of these stats please?
http://www.sbp.org.pk/m_policy/2015/MPS-Jan-2015-Compendium.pdf
http://www.sbp.org.pk/m_policy/2013/MPS-Apr-2013-Compendium.pdf

Govt breaches limit, adds $15.3bn to external debt

- File photo
ISLAMABAD: The government on Friday confirmed to have added about $15.3 billion to the country’s external debt, violating prudent borrowing limits under the Fiscal Responsibility and Debt Limitation Act (FRDLA) and promised to reduce public debt significantly by 2015-16.

This is part of Medium-Term Debt Management Strategy (MTDS 2013-14 to 2017-18) released here on Friday after conclusion of third review of the IMF programme in Dubai. “The public debt to GDP ratio is projected to be brought down to 55.2pc by 2015-16,” said the ministry of finance.

It said the debt ratio was expected to be around 52pc by end 2017-18 which would be well below the threshold of 60pc as mentioned in the FRDLA.

The MTDS said the country’s external debt was estimated to touch $72 billion (Rs7.202 trillion) at the end of this fiscal year on June 30 against $57bn (Rs5.7tr at current exchange rate) same period last year.

It said the external debt stood at 24.9pc of GDP on June 30, 2013 which had now gone up to 27.7pc of GDP by end of this year.

The government said it had violated the requirements of the FRDLA. It said the government was required to reduce revenue deficit to zero by June 30, 2008 and then maintain revenue surplus but the revenue balance had been running in the negative since 2005.

And the point being? What I have shared is from official public data. Can you share the source document of these stats please?
http://www.sbp.org.pk/m_policy/2015/MPS-Jan-2015-Compendium.pdf
http://www.sbp.org.pk/m_policy/2013/MPS-Apr-2013-Compendium.pdf

 

[Orakzai]

Looks like naswar has run out somewhere....

Yeah I put it in someone's hole.

LOL, I wonder if you ever actually paid attention in school when they were teaching economics!!! One, you are "FALSELY" accusing that the government has put debt on you, without knowing that the little debt you talk about, has created economic shock wave around the globe about Pakistan's economy and the prospects of it for other investors. The debt is really because of projects started that are literally two HUNDRED times of the debt, and will create millions of new jobs, increasing economic throughput, more income, education, trade, hospitals, schools and all, as the tax base will grow. Because of these attractive stimuli's, it'll act as a magnet and will bring in billions of foreign investment, like it already did from China for over $ 75 billion. It'll turn the face of Pakistan as the world's known it in the past 70 years to a brand name, with high economic growth and profitability for everyone.
This government, if remained in power, will have created a very stable foundation for the future of Pakistan. There is no doubt about it and if you don't like it, you basically don't like your country as your posts turn against Pakistan's interests. Not sure why you guys can't appreciate the work being done which would really create opportunity for you and your next generations to come!

Which part of this holy earth have you studied this pathetic economics from? Tell me about a single institution in this world which teaches you that increase in debt is good for the economy? From a NAWAZ SHAFIF ECONOMIC INSTITUTION??
Show me a single country which has developed itself on acquiring massive amount of debts and that too external debts???
Do you even know how much interest we are paying on it?? In billions or may be a little shy of a billion?? And that $75 billions? Are you for real??? I can bet on you that even after 3 years we would still be crying for these 75 billions. This incompetent government cant even fix power problems and you are jumping gagga about the 70 billions.

 

[Dubious]

These guys have done a good job selling the Pakistani market to foreign investors.

And then we wonder where the funding for our terrorists come from

 

[Faiez]

Yeah I put it in someone's hole.

Which part of this holy earth have you studied this pathetic economics from? Tell me about a single institution in this world which teaches you that increase in debt is good for the economy? From a NAWAZ SHAFIF ECONOMIC INSTITUTION??
Show me a single country which has developed itself on acquiring massive amount of debts and that too external debts???
Do you even know how much interest we are paying on it?? In billions or may be a little shy of a billion?? And that $75 billions? Are you for real??? I can bet on you that even after 3 years we would still be crying for these 75 billions. This incompetent government cant even fix power problems and you are jumping gagga about the 70 billions.

Debt is not a bad thing, if what's to be done with the cash results in good growth etc etc...

If you can't turn a loan of 1 billion at 3% interest rate into 1.1 billion in 3 years, you're loosing money. And pakistan is continuously loosing money.

Sustainability of debt can be measured by debt to gdp ratio. It should be kept at a reasonable level. Pakistan is steadily increasing debt:gdp. It's not a good thing if it doesn't eventually go down again. Then you will have lost money.

Current government has done little economic reform so far. It's effectively ineffective.

 

[SBD-3]

Yeah I put it in someone's hole.


Which part of this holy earth have you studied this pathetic economics from? Tell me about a single institution in this world which teaches you that increase in debt is good for the economy? From a NAWAZ SHAFIF ECONOMIC INSTITUTION??
Show me a single country which has developed itself on acquiring massive amount of debts and that too external debts???
Do you even know how much interest we are paying on it?? In billions or may be a little shy of a billion?? And that $75 billions? Are you for real??? I can bet on you that even after 3 years we would still be crying for these 75 billions. This incompetent government cant even fix power problems and you are jumping gagga about the 70 billions.

Rather than crying like a woman. Bring something forth which can back your argument. Rest this forum is aflesh with ladies.

 

[Orakzai]

Debt is not a bad thing, if what's to be done with the cash results in good growth etc etc...

If you can't turn a loan of 1 billion at 3% interest rate into 1.1 billion in 3 years, you're loosing money. And pakistan is continuously loosing money.

Sustainability of debt can be measured by debt to gdp ratio. It should be kept at a reasonable level. Pakistan is steadily increasing debt:gdp. It's not a good thing if it doesn't eventually go down again. Then you will have lost money.

Current government has done little economic reform so far. It's effectively ineffective.

Debts can only be good if taken for development projects like Dam etc. What we seeing in our country is tht money is borrowed on highest interest to be given to PPP's (power supply companies). Like last year more then $4 billion were given to them and this year we are standing again at the same problem. We all know that most feasible way to produce power is to built dams and we all know that they've shelved construction of all the big dams coz of financial issues and rather working on useless projects like wind farms.

Rather than crying like a woman. Bring something forth which can back your argument. Rest this forum is aflesh with ladies.

Yeah stop posting like a whore and talk some sense. I just posted a link of how much debt they have put on us in last two years but only coz you are stupid blind supporter of a party you wouldn't read it and cry like a whore. Talk with respect and I'll respect you or else I have hands and mouth to respond to you as well.

 

[SBD-3]

Yeah stop posting like a whore and talk some sense. I just posted a link of how much debt they have put on us in last two years but only coz you are stupid blind supporter of a party you wouldn't read it and cry like a whore. Talk with respect and I'll respect you or else I have hands and mouth to respond to you as well.

I ve posted the official figures with sources. If you dont have anything to counter present then yelling idiotically like that wont help

 

[Echo_419]

Pakistan''s external debt and liabilities posted $1.3 billion decline during first half of the current fiscal year, despite an increase in loan disbursements. The federal government successfully raised some $1 billion from the issuance of a 5-year Sukuk in the international market in November 2014.

While, the country also received three tranches amounting $1.607 billion from the International Monetary Fund (IMF) during first half of the current fiscal year under Extended Fund Facility (EFF) to build its depleting forex reserves. However, despite some increase in loan disbursements, overall stocks of foreign debt and liabilities are witnessing downward trend.

Bankers said that current decline in the stocks of debt and liabilities occurred due to payback of public debt and secondly, a notable fall in the external liabilities. "During the period under review, payback of government debt and massive repayments to IMF on account of different programmes mainly Standby Arrangement (SBA )- a programme obtained in November 2008 to avoid default - have resulted in sharp fall in the external debt and liabilities," they added.

According to State Bank of Pakistan (SBP), the stocks of external debt and liabilities have posted a 2 percent decline during July-December FY15. With current fall, Pakistan''s total external debt and liabilities stood at $64.34 billion as on December 31, 2014 compared to $65.64 billion as on June 30, 2014, depicting a decline of $1.3 billion. The total stocks of debt and liabilities comprise public debt, foreign exchange liabilities, Public Sector Enterprises (PSE) guaranteed debt, PSE non-guaranteed debt, scheduled banks'' borrowing, private guaranteed and non-guaranteed debt and debt liabilities to direct investors.

This decrease in external debt and liabilities has mainly originated from public debt, which registered some $1.28 billion fall to reach $53.545 billion at the end of first half of this fiscal year. Public sector debt included long-term and short-term government debt, IMF debt and foreign exchange liabilities.

Detailed analysis revealed that although during the first half of the current fiscal year, Pakistan paid back some $874 million to IMF on account of different programmes, its debt portfolio has surged by some $548 million mainly due to fresh disbursement under EFF programme.

Similarly, with $316 million surge, Public Sector Enterprises (PSEs) debt reached $2.425 billion in December 2014, up from $2.109 billion in June 2014. The scheduled banks borrowing mounted to $2.252 billion as on December 31, 2014 as against $1.989 billion as on June 30, 2014, depicting an increase of $263 million. In addition, during the period under review, private sector debt increased to $3.064 billion. Debt liabilities to direct investors witnessed downward trend and fell by $693 million to $3.053 billion in December 2014.
External debt, liabilities down by $1.3 billion in first half fiscal year 2015 | Business Recorder

Where are the nay sayers

Looks like the situation is not that bad

 

[My-Analogous]

Stock of external debt in April 2013, have a look
View attachment 200130

Mate it is not because of Govt. policy but a magic of oil price and Pakistan have to take advantage of that. I will clap only when i saw positive results. Govt. announce lot of projects and we didn't saw these project completed and past 50 years it is like that only. When i saw a finish project with positive result only then i will say YES HE DID or else nothing new

 

[Faiez]

Looks like the situation is not that bad

The govt. is working overtime in making a pakistan "that bad" a reality.

 

[Orakzai]

I ve posted the official figures with sources. If you dont have anything to counter present then yelling idiotically like that wont help

Its not yelling its TIT FOR TAT reaction. One should just STHU and shouldn't call others " women" if dont have answers to an argument

 

[Echo_419]

The govt. is working overtime in making a pakistan "that bad" a reality.

No need to be so much pessimistic
Atleast this govt is better than the previous ones