Govt Breaches limit. Adds external debt worth 15.3 billion USD

[WAR-rior]

Guyz. Sorry to barge into Pakistani thread but since its bout MacroEconomics, I am not able to stop myself.

I only wish, Pakistanis spend and buy sensibly. Such over borrowing without any heavy profit out of the investments will only kill ur currency and hence 'á killing inflation'.

 

[farhan_9909]

Funnily enough, this 3 billion USD increase in reserves has come on the back of 15 billion USD increase in external debt. Moody does not just look at forex reserves before increasing the rating. Else everyone could increase their loans and bolster up the reserves to get a better rating.

Not true,A month back Dar live on tv said SInce Pakistan debt is in dollar.With the appreciation of rupee,The debt also decrease in dollars term.He further said even a 1rupee appreciation against dollar decrease the loan by 80Billion PKR or more than 800Million.

Let the Growth pickup and the power sector problem solved.WIth the increase in export(18%).We can easily overcome this problem

 

[acid rain]

Never underestimate the feel good factor.. Anyway, the IMF figures say $ 241 billion and that seems a more accurate figure

A 3.6 % growth on 231 billion - so 241 seems correct.

 

[OrionHunter]

There we goes...if things kept going like this then i' am pretty sure Pakistan will cross the century mark before the first sun rise of 2015. Shameful performance of both DEMO crazy govts i.e PPP & PML-N...from 33billion$ during Musharraf era to 73billion$ in a span of less than 7 years.

It would be bad news if you guys are caught in a debt trap. All your borrowings will be spent on servicing the previous loans with nothing left for development. If that stage is reached, then it's curtains, unless wasteful expenditure is curbed, increasing the narrow tax base, and improving external inflows.

 

[karan.1970]

Not true,A month back Dar live on tv said SInce Pakistan debt is in dollar.With the appreciation of rupee,The debt also decrease in dollars term.He further said even a 1rupee appreciation against dollar decrease the loan by 80Billion PKR or more than 800Million.

Let the Growth pickup and the power sector problem solved.WIth the increase in export(18%).We can easily overcome this problem

And your calculation points towards an external debt of 80 Billion USD which is in line with what the OP is all about. The prblem that you have is that your growth is predominantly dependent on Exports which in turn depends on a weak PKR.. That creates an issue on your foreign debt situation.

 

[notsuperstitious]

The Increase in foriegn reserve's also will give us better rating from Moody.

If it was some other poster I'd asked them to read up on how ratings are evaluated. But your entertainment value is unmatched and I would not want to hurt it.

 

[acid rain]

@farhan_9909.

As illusion earlier said..its a ponzi scheme.

for e.g., PIA showed profits of billion plus and I am sure u posted on it too...

but reality is saudis are banning all PIA flights because of huge overdues and non payments....so is true for other stations as well.

so what was the purpose of showing profit? to get investors enthused and get some investment and loans so that PIA can pay back their long overdue outstandings...the actual net result is nil or just a meager improvement...but still very much in the red.

now imagine that the overdues becomes unmanagable and saudis do end up banning PIA, which forces others to ban as well and investors and loan givers pull out half way, or a PIA flight meets with a tragic accident or terrorist attack..what happens? the whole scheme comes tumbling down.

 

[farhan_9909]

And your calculation points towards an external debt of 80 Billion USD which is in line with what the OP is all about. The prblem that you have is that your growth is predominantly dependent on Exports which in turn depends on a weak PKR.. That creates an issue on your foreign debt situation.

As per Business recorder,The Debt still is 60-61Billion dollars.They keep it updated

News | Business News | Current News | Latest World News | Current World News | Pakistan News

@farhan_9909.

As illusion earlier said..its a ponzi scheme.

for e.g., PIA showed profits of billion plus and I am sure u posted on it too...

but reality is saudis are banning all PIA flights because of huge overdues and non payments....so is true for other stations as well.

so what was the purpose of showing profit? to get investors enthused and get some investment and loans so that PIA can pay back their long overdue outstandings...the actual net result is nil or just a meager improvement...but still very much in the red.

now imagine that the overdues becomes unmanagable and saudis do end up banning PIA, which forces others to ban as well and investors and loan givers pull out half way, or a PIA flight meets with a tragic accident or terrorist attack..what happens? the whole scheme comes tumbling down.

Profit is the reality not the banning of PIA in KSA or Russia.If i am not wrong PIA is all set to be privitized in feb 2015.

If it was some other poster I'd asked them to read up on how ratings are evaluated. But your entertainment value is unmatched and I would not want to hurt it.

Master strike back.

We have no other option but to get Loan.Unlike PPP under PMLN all the economic indicators are positive

 

[karan.1970]

As per Business recorder,The Debt still is 60-61Billion dollars.They keep it updated

News | Business News | Current News | Latest World News | Current World News | Pakistan News

The additional tranches will become visible by 30th June as mentioned in the OP

 

[acid rain]

As per Business recorder,The Debt still is 60-61Billion dollars.They keep it updated

News | Business News | Current News | Latest World News | Current World News | Pakistan News



Profit is the reality not the banning of PIA in KSA or Russia.If i am not wrong PIA is all set to be privitized in feb 2015.



Master strike back.

We have no other option but to get Loan.Unlike PPP under PMLN all the economic indicators are positive

Damn!!

I'll lose some maths AQ points here.

How in the world would the profit be real when there are huge outstandings and fuel bills to be paid and PIA doesnt have the money to pay them?.
Its just a scam, so is the whole ponzi scheme which will unravel itself in a year or two.

 

[Fahad Khan 2]

Pakistan govt showing fake reserves by building up debt.....

 

[ziaulislam]

What are the CAD and Trade deficit numbers for Pakistan ?

much better than yours. in absolute amount about 1.8 billion in gdp less than 1% vs 35 billion of india(which improved from 85 billion previous year)
i am not debating,you can confirm it on india central bank cite.

 

[ziaulislam]

the article is wrong. pakistani debt according to satebank was 59.9% with 23% foreign debt vs india foreign debt of 426 billion dollars and 21.8% according to india central bank on 31 decemeber 2013. when it comes to toaltal debt we were better at than india 67%.
you check official figures on their home site.

people should understand that real problem in our economy is the volatility and lack of investment and power problem rather than debt or basic indicators.
thats why you can expect a plus 6% growth once you address power problems.
achieving 4% will be easy but target of 4.4 will be difficult this year

 

[Jaanbaz]

I am honoured that our friends from across the border care so much about Pakistan.

 

[cloud_9]

much better than yours. in absolute amount about 1.8 billion in gdp less than 1% vs 35 billion of india(which improved from 85 billion previous year)
i am not debating,you can confirm it on india central bank cite.

Why are you comparing India with Pakistan

the article is wrong. pakistani debt according to satebank was 59.9% with 23% foreign debt vs india foreign debt of 426 billion dollars and 21.8% according to india central bank on 31 decemeber 2013. when it comes to toaltal debt we were better at than india 67%.
you check official figures on their home site.

people should understand that real problem in our economy is the volatility and lack of investment and power problem rather than debt or basic indicators.
thats why you can expect a plus 6% growth once you address power problems.
achieving 4% will be easy but target of 4.4 will be difficult this year

Just a head's up did you check the breakdown of India's foreign debt.................Mr. Economist.


Looking at the arguments presented by Pakistanis here ,no wonder their economy sucks