gas tarriff hike ... incoming

[blueazure]

its foolish and plain suicidal to assume that we will have a growth miracle from these dire circumstances of inflation, massive devaluation and general over regulation of economy . confidence of ppl is being shattered daily and no amount of oratory , ghabrana nahi hai , etc will work .



generally every economist is agreeing that these austerity and shocks arent helping the economy at all

in all fairness, we should now come out of this Patwari vs youthia debate and focus to save the country from these IMF imposed loan sharks

 

[AZ1]

its foolish and plain suicidal to assume that we will have a growth miracle from these dire circumstances of inflation, massive devaluation and general over regulation of economy . confidence of ppl is being shattered daily and no amount of oratory , ghabrana nahi hai , etc will work .



generally every economist is agreeing that these austerity and shocks arent helping the economy at all

in all fairness, we should now come out of this Patwari vs youthia debate and focus to save the country from these IMF imposed loan sharks

Any comment?

no ,

these are not fake news . read it again

its a fact that ECC has to now quarterly DISCUSS raising gas tariffs on account of IMF targets .

Read it again and date also its FEB 2020 now and BOL news headline was that this hike was also turned down.

 

[Verve]

its foolish and plain suicidal to assume that we will have a growth miracle from these dire circumstances of inflation, massive devaluation and general over regulation of economy . confidence of ppl is being shattered daily and no amount of oratory , ghabrana nahi hai , etc will work .



generally every economist is agreeing that these austerity and shocks arent helping the economy at all

in all fairness, we should now come out of this Patwari vs youthia debate and focus to save the country from these IMF imposed loan sharks

Ok, what would you have done had you taken over government with $20bn debt to be paid in short term and every economic indicator in the gutter?

Sell the nukes?

 

[Syed1.]

we should now come out of this Patwari vs youthia debate and focus to save the country from these IMF imposed loan sharks

Please answer this question, did IMF come to us or we went to IMF?


Poor country that hardly exports $25b mostly teenday tamatar and expect not to go to IMF every few years.

 

[Rahil khan]

Dont worry! If governments like Zardari and Nawaz completed their tenures, rest assured Imran's will too. If people had come out earlier when they were suppose too, we wouldnt be in this predicament to begin with.

12 years ago Zardari took IMF loan for development expenditures....now we have taken loan from IMF to fulfill our defense expenditures as well. If this ain't scary for anyone than even time to keep putting head inside sand has limited effect due to the ticking clock...!

 

[blueazure]

Ok, what would you have done had you taken over government with $20bn debt to be paid in short term and every economic indicator in the gutter?

Sell the nukes?

why dont you ask your supreme leader this question ?

didnt he promise to bring looted wealth back ? didnt he vow never to 'beg' ?


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[Pandora]

No my friend, it was only the CAD that was positive, current account was still negative. CAD was reduced by stifling imports, including imports which have no local alternative. This is no achievement because when imports are stifled or taxed higher, imports which include machinery, electronics and raw material used by industry then the whole point of reducing CAD is defeated as then we will never be able to climb out of the debt unless we import all these things which are required to lay a strong industrial foundation for local consumption and also for export, in the near future.

This is again a failure of the Government, inflation should never have risen to the levels it reached even as far back as last year. The only thing that the Government had to control was unnecessary/luxury imports by raising taxes only on those items.

https://www.dawn.com/news/1517577
Our imports are high not bcz we import machinery but bcz we import useless stuff and luxury items like crazy. Do you even have any idea how bloody much makeup is imported into pakistan? Lets take into account the products we use everyday that is available in pakistan and still imported. Pakista dont even touch local product not bcz they are not good in quality but bcz of our shitty standards. Machinery/Electronics is still being imported its not like imports came to a dead stop but merely reduced.

Devaluation, meant to lower imports and boost exports was done in a senseless manner due to which no substantial benefit could be reaped whereas the loss to the economy is astronomical. This is insane, this is criminal. Evern since 1971 we have been managing the economy through loans and have been under debt which we have been able to manage with a growing economy.

My only concern, and response to your point here, is that I see no sign of movement of economy in the right direction. There is no positive indication in any of the regions which matter and the impact of devaluation alone may haunt us for the next 2-3 years.

Living by debt is no way for a Nation. Especially in an environment when we have to compromise on our national matter and security. Our debt to gdp is one of the highest and mean ridiculously high. No economist can tell you that this is sustainable. We are in a debt trap and we need to get out of it as soon as possible for a truely sustainable growth. Pumping debt money is artificial and damaging in so many ways to our economy.

There are several positive indicators
Our exports are growing at a steady pace now and not reducing like previous govts.
Our Ruppee is stable without any artificial management as done in previous govt.
Our Gdp growth is all set to increase after 2020 forecasted by all financial institutions. Not an artificial growth but a sustainable growth on solid footings less prone to external unstable factors. You cant build a house without a solid foundation. Or you can build one without foundation and see it wash away in next rainy season.

 

[Verve]

why dont you ask your supreme leader this question ?

didnt he promise to bring looted wealth back ? didnt he vow never to 'beg' ?


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Question for question .. typical.

 

[Syed1.]

https://twitter.com/x/status/1224591471728308224

We have been hearing gas price increase since December. Patwaris dogs should find something else to bark about.

 

[ejaz007]

https://twitter.com/x/status/1224591471728308224

We have been hearing gas price increase since December. Patwaris dogs should find something else to bark about.

You have been hearing and we have been bearing. The prices and slabs have increased. Come to Pakistan for a month and perhaps by any slight chance you may understand.

 

[AZ1]

You have been hearing and we have been bearing. The prices and slabs have increased. Come to Pakistan for a month and perhaps by any slight chance you may understand.

Or you can leave Pakistan and settle there where he is living then you would come to know thaf Pakistan still is least expensive country to live in and then may be you spend your life with shuker

 

[Zibago]

My only concern, and response to your point here, is that I see no sign of movement of economy in the right direction. There is no positive indication in any of the regions which matter and the impact of devaluation alone may haunt us for the next 2-3 years.

Yes we rather take on more loans to keep currency at a fixed rate while achieving a respectable gdp growth by increased government spending and cheap imports wow such a sound policy I wonder when was the last time a government tried it and got close to bankruptcy ?

Consider this, a hypothetical example just to explain, a debt of 100 Billion USD may look massive today with an economy of 350 Billion USD; however with a consistently growing economy, an even bigger debt of 200 Billion may not look as big against a 800-900 Billion economy. What we need to focus on is growing our economy and managing Fiscal Deficit as best as we can manage until we start exporting a whole lot more.

When the growth is achieved not by increasing export but by consumption and government spending it is a huge problem that is exactly what happened in Dar,ian times

 

[ejaz007]

Or you can leave Pakistan and settle there where he is living then you would come to know thaf Pakistan still is least expensive country to live in and then may be you spend your life with shuker

Wrong comparison.

You can not judge Canadian and Pakistan economy.

We have increased cost of manufacturing many times in the last year. Canada has not. Businesses are suffering.

Our human purchasing power has come down. Canadian not.

We have devalued currency around 30%. Canada has not.

Our inflation has gone upto 14.56% from 4%. Canadian inflation has not.

Our growth rate has come down from 5.8% to 2%. Canadian growth rate is stable.

Our unemployment rate has increased. Canadian not.

 

[AZ1]

Wrong comparison.

You can not judge Canadian and Pakistan economy.

We have increased cost of manufacturing many times in the last year. Canada has not. Businesses are suffering.

Our human purchasing power has come down. Canadian not.

We have devalued currency around 30%. Canada has not.

Our inflation has gone upto 14.56% from 4%. Canadian inflation has not.

Our growth rate has come down from 5.8% to 2%. Canadian growth rate is stable.

Our unemployment rate has increased. Canadian not.

Just visit canada and then come here and let us know how good life there and how easily you get the jobs like on plate unless you start doing job in hotel as part time or driving uber etc if that what you call job then you can have careem,uber job here as well.

As for inflation check the inflation chart check below. Its not the first time we hit 14%

 

[Mav3rick]

Yes we rather take on more loans to keep currency at a fixed rate while achieving a respectable gdp growth by increased government spending and cheap imports wow such a sound policy I wonder when was the last time a government tried it and got close to bankruptcy ?

The problem with many of you is that you ignore the post and start posting responses, many a times based on assumptions. If you refer to my original post, I made it abundantly clear that there is a right way to do the right thing and a wrong way to do the right thing, with the former you get to your desired destination whereas with the later you may end up doing more harm in the process. As explained, you cannot start building a 2nd floor while the 1st floor is still weak.

Basically, from where the previous Government left off, all that we needed to do was continue with the policy while decreasing imports (not through depreciation but through higher taxation on import of unnecessary items), increasing exports (subsidies and tax credits), increasing remittances (making Banking easier and increasing penetration), inviting FDI (through continuance of policies thereby proving stabilization) and establishing a strong foundation for industry (initially to cater to internal requirements of machine, automobile, electronics etc., and slowly for export) etc. However, what we did, well we all know the outcome and where we are all standing today!

When the growth is achieved not by increasing export but by consumption and government spending it is a huge problem that is exactly what happened in Dar,ian times

There is always a time when imports exceed exports, especially when you have lost export oriented industry due to shortage of energy and are in the process of adding surplus energy generation to eventually cater to the expected rise in demand of energy with the establishment of new industry.