For Pakistan: Disaster looms amid Drop in Rupee, Foreign Reserves, Remittances & High Inflation

[etylo]

China is another East India company .

Yeah, it is going to rule and ruin you slum country, fool.

 

[nahtanbob]

Can you provide facts and figures from credible sources that support your claim (about horrendous Chinese loan terms)?

Additionally, lets assume CPEC loan repayments are aligned with comparable international terms considered ‘fair’, HOW exactly would that offset Pakistans myriad other structural issues, not least of which is the political instability and lack of policy continuity due to the Fauj repeatedly, almost since Pakistan’s inception, taking fascist and unconstitutional actions?

why borrow money for projects when you are not in position to take advantage of the projects ?

The success of CPEC lies in the development of special economic zones, but it encountered the epidemic.

China needs those manufacturing jobs. there won't be special economic zones. the pandemic is over.

 

[AgNoStiC MuSliM]

why borrow money for projects when you are not in position to take advantage of the projects ?

I completely agree with that. The problem has been that the Sharif’s have always this ridiculous focus on ‘motorways and powerplants’, likely because large infrastructure projects are easy to sell as ‘tangible progress’, not to mention the enormous potential for kickbacks through contracts.

 

[karmaa]

Yeah, it is going to rule and ruin you slum country, fool.

They loot poor countries like pakistan srilanka maldiv , we kick looters in the butt.

 

[etylo]

They loot poor countries like pakistan srilanka maldiv , we kick looters in the butt.

They are going to obliterate the slum country.

 

[nibba]

They are going to obliterate the slum country.

Going to have to obliterate your 200+% debt to gdp first.

Good luck

China is another East India company .

East india company was actually good at what it did. And was backed by an unchallenged navy.

China loaned money to completely worthless projects around the world with no way of recovering losses. Their navy cant leave the first island chain.

 

[etylo]

Going to have to obliterate your 200+% debt to gdp first.

Good luck


East india company was actually good at what it did. And was backed by an unchallenged navy.

China loaned money to completely worthless projects around the world with no way of recovering losses. Their navy cant leave the first island chain.

Live in your delusions, that's what you people are good for.

 

[ghazi52]

,.,..

New low: rupee hits 302 against US dollar​

• Currency depreciates another 0.33% in inter-bank market

 

[Puffin]

Indians discussing the current situation in Pakistan and China

 

[nahtanbob]

For Pakistan: Disaster looms amid Drop in Rupee, Foreign Reserves, Remittances & High Inflation

ISLAMABAD: The rudderless ship of economy is heading towards a disaster owing to the persistent drubbing of the rupee against the dollar in the wake of dwindling foreign exchange reserves and remittances, and possibility of a sharp rise in inflationary pressures.

Now such depreciation of the exchange rate will result in an increase in the POL prices and the same will apply in case of an increase in the fuel price adjustments (FPA) in the wake of furnace oil and imported RLNG becoming dearer in months ahead.

Headline inflation as well as core inflation is expected to further go up so the policy rate would also be increased under the IMF conditions.

A doomsday scenario is looming large with the possibility of heading towards steep “stagflation” on account of lowering GDP growth and an upsurge in CPI-based inflation in months ahead. Its ultimate victim would be the poor segments of the society because stagflation would push up poverty and unemployment.

Persistent decline in the exchange rate has crossed the mark of Rs300 against the US dollar in the interbank rate owing to the increased demand for dollars for clearance of imports, payment of dividends, and materializing structural benchmark condition of the IMF under $3 billion Standby Arrangement (SBA) for keeping the difference between interbank and open market not more than 1.25 percent.

The structural benchmark has now breached, as this difference stands at around 4.5 to 5 percent. But the State Bank of Pakistan (SBP) is not ready to say anything on record. The same is the situation related to the Ministry of Finance after assumption of power by the caretaker setup. When official spokesman for the SBP was inquired about continuous depreciation of exchange rate, the response was “no comments”.

At least, during the PDM-led regime, the then finance minister Ishaq Dar had always preferred to show his muscles against speculators but now no one seems in the mood to comment on the prevailing situation.

The Ministry of Finance has issued just one statement so far stating that the caretaker Minister for Finance Dr Shamshad Akhtar had arrived in the Q Block and assumed the charge.

The caretaker PM has selected Dr Shamshad Akhtar as Minister for Finance and Dr Waqar Masood as Advisor to PM on Finance with the status of minister of state but so far no division of work has been done to assign the responsibilities.

The collective responsibility is no more solution because it will not help determine the Key Performance Indicators (KPIs). So, there is a need to distribute the responsibilities in order to hold someone accountable at the end of the day.

In the prevailing difficult economic situation, the current account deficit witnessed rebounding and stood at $1 billion for July 2023 in the wake of reduced exports, remittances and increased imports.

The widening gap between interbank and open market rates will further reduce the possibility of luring remittances. On the internal front, the FBR’s revenue collection has also lagged behind than the required growth to materialize the annual target of Rs9.4 trillion.

Disaster looms amid drop in rupee, reserves, remittances

ISLAMABAD: The rudderless ship of economy is heading towards a disaster owing to the persistent drubbing of the rupee against the dollar in the wake of dwindling foreign exchange reserves and...

www.thenews.com.pk

Wasn't the IMF deal supposed to resolve this ?

 

[AZADPAKISTAN2009]

Only PrAB-Lem is Retired-Unretired Tola

 

[karmaa]

For Pakistan: Disaster looms amid Drop in Rupee, Foreign Reserves, Remittances & High Inflation

ISLAMABAD: The rudderless ship of economy is heading towards a disaster owing to the persistent drubbing of the rupee against the dollar in the wake of dwindling foreign exchange reserves and remittances, and possibility of a sharp rise in inflationary pressures.

Now such depreciation of the exchange rate will result in an increase in the POL prices and the same will apply in case of an increase in the fuel price adjustments (FPA) in the wake of furnace oil and imported RLNG becoming dearer in months ahead.

Headline inflation as well as core inflation is expected to further go up so the policy rate would also be increased under the IMF conditions.

A doomsday scenario is looming large with the possibility of heading towards steep “stagflation” on account of lowering GDP growth and an upsurge in CPI-based inflation in months ahead. Its ultimate victim would be the poor segments of the society because stagflation would push up poverty and unemployment.

Persistent decline in the exchange rate has crossed the mark of Rs300 against the US dollar in the interbank rate owing to the increased demand for dollars for clearance of imports, payment of dividends, and materializing structural benchmark condition of the IMF under $3 billion Standby Arrangement (SBA) for keeping the difference between interbank and open market not more than 1.25 percent.

The structural benchmark has now breached, as this difference stands at around 4.5 to 5 percent. But the State Bank of Pakistan (SBP) is not ready to say anything on record. The same is the situation related to the Ministry of Finance after assumption of power by the caretaker setup. When official spokesman for the SBP was inquired about continuous depreciation of exchange rate, the response was “no comments”.

At least, during the PDM-led regime, the then finance minister Ishaq Dar had always preferred to show his muscles against speculators but now no one seems in the mood to comment on the prevailing situation.

The Ministry of Finance has issued just one statement so far stating that the caretaker Minister for Finance Dr Shamshad Akhtar had arrived in the Q Block and assumed the charge.

The caretaker PM has selected Dr Shamshad Akhtar as Minister for Finance and Dr Waqar Masood as Advisor to PM on Finance with the status of minister of state but so far no division of work has been done to assign the responsibilities.

The collective responsibility is no more solution because it will not help determine the Key Performance Indicators (KPIs). So, there is a need to distribute the responsibilities in order to hold someone accountable at the end of the day.

In the prevailing difficult economic situation, the current account deficit witnessed rebounding and stood at $1 billion for July 2023 in the wake of reduced exports, remittances and increased imports.

The widening gap between interbank and open market rates will further reduce the possibility of luring remittances. On the internal front, the FBR’s revenue collection has also lagged behind than the required growth to materialize the annual target of Rs9.4 trillion.

Disaster looms amid drop in rupee, reserves, remittances

ISLAMABAD: The rudderless ship of economy is heading towards a disaster owing to the persistent drubbing of the rupee against the dollar in the wake of dwindling foreign exchange reserves and...

www.thenews.com.pk

Pakistan can get out of this disaster only by chinese system , they should adopt single communist party system , with no state religion , all types of gundagardi should be curbed with force .

 

[nibba]

Live in your delusions, that's what you people are good for.

Famously accurate and not embellished CCP stats on both debt and gdp.

Not mine.

Ive also been short KWEB all year. So im substantially richer due to these delusions.

 

[epebble]

Wasn't the IMF deal supposed to resolve this ?

Resolve what? Pakistan's problems are paralysis with multiple organ failure. IMF deal is a box of band-aids. When have you seen a critical patient saved by plastering him with band-aids?

 

[khansaheeb]

Crush Pakistan Expand China —-> CPEC

THERE is no solution from this decline for Pakistan until it stops the disastrous terms of CPEC. U r now paying China in 3 ways : loan interest, project fees and guaranteed equity returns.

What's with the Indian infatuation with CPEC?