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Govt faces massive budget surplus of Rs343.5b in first 9 months of FY

Export industry for the first time got stabilized in 8 years till corona happened. Let's not bring this into discussion since something which we cannot do anything.

Apnay expenses Kam Kar ka unhon na surplus Kiya ha.

Expense tu kum honey thay when awaam per paise khurch nahi kerna... Pti has been doing same thing in order to reduce current account gap but see the repercussions. No growth.. GDP fell below 3%...cpec projects almost brought to be stand still in the last 2 years or so... Infrastructure budget has been greatly reduced etc.... See if allocated money is not spend wisely or at all than there is no long term benefits
 
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No that means provinces failed to utilise this money for social welfare that is health care, education and various infrastructure projects. Same incompetent will be done in coming fiscal year as well.
Its not correct as benchmark was previously federal Govt so from 1947 till 2008 centre was responsible to take on education and health services and which was pathetic ,In last year good work has been done but betterment is needed
 
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Reserves were 18 Billion when PTI govt took over
loans
Our exports started to rise in 2017 to 2018 with increase of 13% after Govt gave tax relief to exporters
the said taxes were also imposed by that very same govt, hell they tried to tax the hell out of IT sector, and when they started shifting to uar, then the pmln govt came to its senses.
Textile industry data will really make your case strong but any way Bangladesh is textile heaven with cheap and productive labour .
what was stopping them from offering similar incentives?
Avg GDP growth was 5 %
import led growth
India was checked and never dared for any misadventure
lol, what? our coward pm refused to even mention india's name.
GCC was angry over Gawadar and KSA over Yemen
again mishandling by pmln of the situation, abusing another country in the parliament is not the way to do things.

and in the end, all of what we are suffering, CAD, Loans etc. all have roots in shit decisions of pmln. so, no, they werent any better. the growth was all import and construction sector led, no exports went up. resulting in the flight of foreign exchange, and extremely high prices of housing etc.
 
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loans

the said taxes were also imposed by that very same govt, hell they tried to tax the hell out of IT sector, and when they started shifting to uar, then the pmln govt came to its senses.

what was stopping them from offering similar incentives?

import led growth

lol, what? our coward pm refused to even mention india's name.

again mishandling by pmln of the situation, abusing another country in the parliament is not the way to do things.

and in the end, all of what we are suffering, CAD, Loans etc. all have roots in shit decisions of pmln. so, no, they werent any better. the growth was all import and construction sector led, no exports went up. resulting in the flight of foreign exchange, and extremely high prices of housing etc.
My friends what you have said is all fairy tales .No point of arguing with you
 
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At this lockdown, every country's economy goes backwards, imports and exports fall, and debt rises.This is a normal phenomenon At this difficult time..
 
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My friends what you have said is all fairy tales .No point of arguing with you
my friend you are too narrow minded to see the impact of their policies and actions.
 
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its more of your word against mine .
No my friends. Its facts v/s propaganda. Don't cherry pick the numbers. Go for the complete picture. Now let me debunk each of your words one by one.

Our exports started to rise in 2017 to 2018 with increase of 13% after Govt gave tax relief to exporters.
Why just 2017 and 2018. Why not full tenure. Let me give you figures of previous years:
upload_2020-5-9_21-22-6.png


So exports declined consistently in 2014, 15, 16 and 17. so 18 was not increase but a mere recovery of previous downfall. On overall basis during PMLN tenure our exports were stagnant which actually means decline as our population increased during the same period as well as world economy but we remained stagnant.

Govt gave tax relief to exporters.
Which tax relief since couple of decades tax rates on exports are same. Income tax 1% sales tax 0%.

our external account deficit was high due to power plants and infrastructure ramping up .
Sir out of total current account deficit of 19 billion import of power plant machinery is around 10%. Here is the actual figures of imports of Fiscal year 2017 and 2018:(look at the last line)
upload_2020-5-9_22-29-12.png





Reserves were 18 Billion when PTI govt took over
Don't quote overall reserves as reserves with commercial banks has nothing to do with government. Even combine reserves were 16 billion not 18 billion and that declined from 23 billion 2 years back.

The real irony is the state bank reserves that declined from 18 billion to 9.7 billion in last 2 years with a deficit of 19 billion dollars. it means to finance shortfall of 19 billion state bank only had just 9.7 billion.

PMLN tried to ensure that Pakistan either get bankrupt or had to took so much loan that we can't do any development at all. Below are the numbers of SBP:

upload_2020-5-9_22-36-21.png


So on net basis PMLN government not only reduced the SBP reserves but also increased the current deficit from mere 2 billion dollars to 19 billions.


GCC was angry over Gawadar and KSA over Yemen
GCC is angry due to Gawadar that's why same GCC is now using CPEC and Gawadar to install refineries. Same GCC is not angry with India for Chabahar that is direct competitor of GCC in terms of oil exports.
What are you talking about man ? Give me fact not opinion.

US was angry due to CPEC and China centricity
Then why we have diplomats for ? Why USA is not angry with us now ?

Textile industry data will really make your case strong but any way Bangladesh is textile heaven with cheap and productive labour .
Why are we not ? China's labor is not cheaper than us but still they are much bigger exporter than us. So don't blame it on cheap labor. Who is supposed to remove bureaucratic bottleneck?

In punjab alone there were closed to 49 new hospitals built where as in KPK there is no new dispensary built .
Yes, few more projects as this is the way commissions are earned. But what is the real situation of those hospitals? Are they working fine? then why your PMLN leader had to go outside ?

Furthermore, in KPK not even a dispensary. This is a mere political statement. Go and meet people of KPK as they seems to be very happy with PTI in services. alot of my friends are really satisfied with the service.

I dont have the data to share the actual number of hospital built in KPK and Punjab. If you can share some authentic data I am happy to learn.

Now comes to stats .
Avg GDP growth was 5 %
Do you know formula for GDP? One of the basic component of GDP growth is consumption and the best was to manipulate the GDP number is take loans and spend a lot. It will result in increase in GDP but will get you in a debt trap.

PMLN did exactly the same. PMLN increased the consumption by releasing SBP reserves, taking loans and spending higher than the income resulting in 19 billion dollar deficit. With a economy of 300 billion dollars an injection of 19 billion deficit and 10 billion reserves means 10% increase in GDP but it means you get loans to finance your luxuries which you cant afford.

India was checked and never dared for any misadventure
Yes because India was killing our people through Kulbhushan and killing our soldiers and we were inviting modi on private functions.

In which world you were living?

I wonder how a Pakistani in his right mind can even support this ? Either you dont the reality or you are out of your senses the treachery they did is humongous.

Brother, hate Imran Khan, hate PTI or anything but atleast see the reality of PMLN. Talk to any genuine economist or experienced finance guy having high level knowledge of economy and they will tell you how PMLN try to literally destroy Pakistan economically ...
 

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Govt faces massive budget surplus of Rs343.5b in first 9 months of FY
Non utilisation of budget by provinces Govt restricts budget deficit at Rs1.686tr in July-March period of FY20Provincial govts received Rs1.931tr from federal govt under NFC


Like most journalistic ‘Spins’ the headline herein is misleading. The fact that provinces did not utilize Rs 343.5 –billion allocated to for them for “Development “only means that the provincial gov’ts have failed to do their job.

As I understand it, a “Budget Surplus” means that total Revenues exceed total Expenditure. Pray tell me how can there be a “ Massive Budget Surplus” when there the very article states that July- March period of FY20 had a budget deficit of R1.686 trillion? This is equal to $12-billion! There can never be a budget surplus if it involves printing money equal to 3.8% of the country’s GDP!

There is no surplus; Mr Imran Ali Kundi is simply insulting the intelligence of the Pakistani public.
 
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Why just 2017 and 2018. Why not full tenure. Let me give you figures of previous years:

https://fp.brecorder.com/2018/04/20180410359344/
Which tax relief since couple of decades tax rates on exports are same. Income tax 1% sales tax 0%.
It is a broader subject where Tax relief in many items from refunds to subsidized rates on electricity .By the way PTI lead Govt even with all those measures failed to get impact .
Don't quote overall reserves as reserves with commercial banks has nothing to do with government. Even combine reserves were 16 billion not 18 billion and that declined from 23 billion 2 years back.

The real irony is the state bank reserves that declined from 18 billion to 9.7 billion in last 2 years with a deficit of 19 billion dollars. it means to finance shortfall of 19 billion state bank only had just 9.7 billion.

PMLN tried to ensure that Pakistan either get bankrupt or had to took so much loan that we can't do any development at all. Below are the numbers of SBP:



So on net basis PMLN government not only reduced the SBP reserves but also increased the current deficit from mere 2 billion dollars to 19 billions.
It was 16.5 Billion US $ on june 2018 (even care takers were there) & by the way they recieved 6 Billion US $ in 2013 . They paid IMF back ,developed Infrastructure worth over 28 Billion US $ ,paid lumpsun amount of 76 Billion US$ in 5 years *admitted by PTI ministers in senate and took 45 Billion US$ ,I can go on and on .

[URL]https://tribune.com.pk/story/972449/sbps-reserves-pakistans-journey-from-6b-to-over-15b/

https://www.dawn.com/news/1482443
Do study before posting figures of your choice .
Do you know formula for GDP? One of the basic component of GDP growth is consumption and the best was to manipulate the GDP number is take loans and spend a lot. It will result in increase in GDP but will get you in a debt trap.

PMLN did exactly the same. PMLN increased the consumption by releasing SBP reserves, taking loans and spending higher than the income resulting in 19 billion dollar deficit. With a economy of 300 billion dollars an injection of 19 billion deficit and 10 billion reserves means 10% increase in GDP but it means you get loans to finance your luxuries which you cant afford.

I know lot better formulas by the way which formula is applied today ?
https://nayadaur.tv/2019/06/pakista...expenditures-a-recipe-for-financial-disaster/

Brother, hate Imran Khan, hate PTI or anything but atleast see the reality of PMLN. Talk to any genuine economist or experienced finance guy having high level knowledge of economy and they will tell you how PMLN try to literally destroy Pakistan economically ...
Sir i dont hate any one as i have no personal issues with them neither im beneficary of any system ,IK lead Govt will be the biggest dark chapters in Pakistan history even worse then 1971 episode since at that time we lost geographically in this tenure we lost ,J&K ,Financially ,Economically ,lay offs and much more

[/URL]
 
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My brother I don't have any personal liking and disliking.

All my numbers are directly from economic survey and SBP reports so they are the most accurate figures.


Manipulation. 2018 is a increase because previous years was a decline I already presented numbers from economic survey issued by government of Pakistan.


It is a broader subject where Tax relief in many items from refunds to subsidized rates on electricity .By the way PTI lead Govt even with all those measures failed to get impact .
So no facts just an statement.

It was 16.5 Billion US $ on june 2018 (even care takers were there) & by the way they recieved 6 Billion US $ in 2013 . They paid IMF back ,developed Infrastructure worth over 28 Billion US $ ,paid lumpsun amount of 76 Billion US$ in 5 years *admitted by PTI ministers in senate and took 45 Billion US$ ,I can go on and on .
What the hell are you talking about. From where you are posting these numbers? They took loan of 45 billion dollars and paid 76 billion dollars and hence a decrease in loan by 31 billion dollars. Are you for real.

Here are the loan figures as per government of Pakistan. I dont know about which country you are talking about
upload_2020-5-11_12-30-17.png
L
oan increased from 22 trillion rupees to 34 trillion and with the fixed exchange rate.
https://fp.brecorder.com/2018/04/20180410359344/

[URL='https://fp.brecorder.com/2018/04/20180410359344/'][/URL]

Man I dont know whats your qualification and profession and on what basis you are asking me to study the numbers but you should realize that my numbers are from economic survey issued by finance ministry each year and they are the official numbers of government of Pakistan.

These news paper numbers you are quoting which dont even make sense with your statements, are not reliable at all.
I know lot better formulas by the way which formula is applied today ?
[URL='https://fp.brecorder.com/2018/04/20180410359344/'][/URL]

Exactly this is my point as stated by this article. THe article is very right that we dont have source of revenue and our expenses are high. but is this done by current government?

THis is all doing of previous periods and cant be undone in few years. You have no idea how economy works. the 19 billion dollar deficit in 2018 need alot of efforts for reversal. We had to depreciate rupee by more than 50% to partially reverse the gap between exports and imports.

In one of your articles the export import comparision is given

upload_2020-5-11_12-38-36.png


Look at the gap created between export and in last 10 years. PMLN and PPP literally destroyed the economy of Pakistan and last 2 years 2017 and 18 were the worst. look at the declining exports from 13 onwards and even in 18 it is lower than 2011.

[URL='https://fp.brecorder.com/2018/04/20180410359344/']
Sir i dont hate any one as i have no personal issues with them neither im beneficary of any system ,IK lead Govt will be the biggest dark chapters in Pakistan history even worse then 1971 episode since at that time we lost geographically in this tenure we lost ,J&K ,Financially ,Economically ,lay offs and much more
[/URL]Brother I also don't have any personal grudges. Believe me I am as much pakistani as you are. I equally feel for our people as you do. I am sure you love your country may be more than me. We all Pakistani on this defence forum feel something for the country thats why we are here.

I am a student of finance and economics. I understand the numbers and with all my heart and putting aside all the biases and political affiliation I swear to Allah that the economic performance of last 2 government was criminally bad.

I don't say that PTI is doing some fabulous job but any government with the stituation in hand is fighting a difficult economic war. It is worst condition we could ever be in and its not because of the current government but due to criminal acts of previous governments.

Anyways if you really want to understand the economic performance of the government dont go for newspaper articles but go for economic survey available at ministry of finance website.
 
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...in other words, we need someone with enough power who'll disregard the rules of the unfair game, and create a new set of rules while excluding all of the old players.

Yes and that is why COVID-19 was a perfect excuse to change the system, but the corruption is so deeply rooted within the Establishment and the Military complex that it is impossible to do it since these people can only do this massive corruption under the guise of the existing non-functional system.
 
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Shows provincial govts are incompetent. I have seen how they waste money in order utilize funds. So sad our country is run by morons.
fully agree..huge capacity building is needed in provinces..this issue is more glaring in provinces like Baluchistan

problem is NFC award..
per constitution it cant be decreased and the current level is simply too high..
this needs to be fixed otherwise the country will be bankrupted..
or provinces need to do what center does..build their own motorways, power plants and dams..
provinces donot have the capacity to do so

Export industry for the first time got stabilized in 8 years till corona happened. Let's not bring this into discussion since something which we cannot do anything.



Expense tu kum honey thay when awaam per paise khurch nahi kerna... Pti has been doing same thing in order to reduce current account gap but see the repercussions. No growth.. GDP fell below 3%...cpec projects almost brought to be stand still in the last 2 years or so... Infrastructure budget has been greatly reduced etc.... See if allocated money is not spend wisely or at all than there is no long term benefits
don't waste your time..it is impossible that someone speaks English will not comprehend a simple fact that 24 billion dollars of current account deficit is bad... seeing that 2-4b$ deficit would lead to IMF bails out like in 2008(due to the global crisis) and 2013...and that this would take years to recover

so if a person is still defending PMLN than there can only be two possibilities
1. he is on it with corruption
2. he hates Imran khan/PTI so much that is lying/putting his head in the sand

in either these cases, no amount of discussion would help.
 
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Furthermore, in KPK not even a dispensary. This is a mere political statement. Go and meet people of KPK as they seems to be very happy with PTI in services. alot of my friends are really satisfied with the service.
Indeed I'd like to add my personal experience with this when I met a driver from Balakot who drives jeeps for transporting tourists. He told us about how his daughter had a very rare condition causing her to be very very sick. He said his daughter was only able to get medicine and other needs due to the development of the healthcare system by PTI and lauded Imran Khan for his efforts in the healthcare sector which he says has changed the state for the good in that regard.
 
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