IK being made a fool by the IMF scum. inflation /dollar out of control

[Novice09]

Not a bad option, they would manage it better than the jokers we have

They are also RUNNING EDUCATION CAMPS for MUSLIMS... In China...

 

[valkyr_96]

The level of education exhibited by most of the posters (all nationalities) here disheartening. This falls squarely in the lap of the mods/management who allow these mad rambling to persist.

 

[shahbaz baig]

Chinese loans are the least problem here. I know from your point of view, it seems like common sense. But try to see from our point of view as well.

Two governments, military, and all the finance ministers, as well IMF have given the confidence that the issue is not CPEC loans.
CPEC loans whose details have emerged show that these are soft loans with large grace period. These loans have also directed in a lot of development: Electricity, Roads, Industries, Ports, a lot of infrastructure work apart from opening corridors for co-operation in many other sectors such as Poverty Alleviation and Science.

As for friendly relations with India, we are all go for it given that Kashmir issue is resolved but that would require India to step up to the table because at the moment Pakistan has already stepped up to it.

I think we did biggest mistake to priorities the CPEC projects. We should have done three things first.
1. Hydro dams
2. Transmission Lines to announced SEZs.
3. Industrialization.

For increasing exports, Pakistan needs industrialization, and for competitive industries we need cheap electricity so that we could have competed regionally & then globally because of cheap total cost of products but Pakistan focused on motorways, roads, coal/wind & some hydro energy plants instead of completely focusing on big hydropower dams. (This is the biggest fault but really easy to understand). We should have worked on cheap hydro energy first since 2013. So today perhaps we will be exporting some goods, productions.

Pakistan & China are still unable to build any successful SEZs yet because feasibility of final production cost is high even for textile if compare with Bangladesh & India. We have totally failed to resume our textile industry yet then forget about other industries.

 

[Sugarcane]

imagine, you had 10 lacs PKR of cash last year . now the same 10lac pkr's 'worth' is 6 lacs thanks to relative 'devaluation' by the SBP . overnight, 40 percent of your wealth has been stolen right under your nose with the stroke of a pen by the money printing devil wearing a suit ( and an Ex imf employee)

It was Ishaq Dar who made you believe that you have 10 Lac PKR worth $10,00 when it wasn't, You have now woke up and smelled the coffee. Anyway, if you see the difference in buying and selling rates - 147.50 vs 150.50, it's not difficult to figure out that current surge is more to do with buying spree by people and investors than actual devaluation. However - PTI have surely created mess by rolling out big change without placing safety measures to contain the roll out. Govt. should have brought Forex market into system to control this mafia and avoid arm twisting by them before throwing exchange rates at their mercy, and should have made CNIC mandatory for buying forex less than $2000 and mandatory tax filing for buying currency over $2000 to catch the tax evaders and people who have black money stashed in cash - it's them who go on investment spree based on rumors.

 

[Lincoln]

The CPEC logic given by you is same as the logic given to justify EAST INDIA COMPANY...

Let me tell you how... try to understand and we can discuss it in dept... in a civilised manner...

1. China required a ROUTE to FEED the MONSTROUS ENERGY REQUIREMENT to keep its ENGINE RUNNING...

2. Pakistan was DEEPLY MISMANAGED and its INFRASTRUCTURE was obsolete... TERRORISM in Pakistan and support to TERRORISTS by Pakistan was the biggest HINDRANCE in attracting INVESTMENT...

3. China saw an opportunity and invested HEAVILY AND SMARTLY... to develop INFRASTRUCTURE for ITSELF... On Pakistani soil...

4. Pakistan... in dare need of MONEY... became blind and ALL THE DEALS were signed where CHINESE INTERESTS were PARAMOUNT...

5. CHINESE money... CHINESE Labour... CHINESE contractors... CHINESE material...

6. Everyone in PAKISTAN... who could have grabbed a PIE... SNATCHED its share... Nation was LEFT CRIPPLING...

I can never buy this argument that PPP or Nawaz can do such harm to Pakistani economy without the knowledge and support of ESTABLISHMENT and ARMY... they are all powerful to handle them...

I strongly feel that Pakistani DIPLOMATS AND BEAUROCRACY always take knee-jerk and reactive ACTIONS... COUPLED with CORRUPT SYSTEM AND GOVERNMENT... a golden opportunity like CPEC was lost...

Have you ever tried to understand why MALAYSIA, SRI LANKA, MALDIVES, MYANMAR... REJECTED Chinese loans for infra development...
Why TURKEY backtracked from BRI...

A FINANCIAL TRAP is ready... which is BEAUTIFULLY DECORATED... want to fall into it???

1. Yes, it is beneficial to China as well. The whole point is to set up a trade route.

2. No support by Pakistan to Terrorism. And Terrorism wasn't the result of Pakistan's mismanagement, it was the result of US mismanagement in Afghanistan.

3. This infrastructure is for China only? Hearing that for the first time. I am enjoying the electricity and roads from these infrastructure projects. Our country is enjoying dams made under this initiative. Our ports, and cities are enjoying development under this initiative: Airports, Inter city metro lines, roads, special industrial zones. Under same initiative, we are enjoying cooperation in Space technology among agricultural sciences as well. And not even 20% of CPEC is complete. So your argument that this infrastructure is somehow "exclusively for China" is simply false.

4. Soft loans, large grace periods, no penalties or threat of international court arbitration, grants, 0% interest loans even... That's not Chinese interests only. Its Its beneficial for Pakistan and China, both.

5. Nope. The construction projects are done through joint ventures. Such as Frontier Corps Construction Company. These companies set up a joint venture with a Chinese company and then take part in projects' bidding processed. Chinese labour was mainly upper tier, the planners, people with in depth knowledge of the field. Even then, many Pakistani people found their way to upper tiers for jobs too. Lower tier was mainly Pakistani labour -- Thar for example, it is bringing about uplift of the people. For materials, local industries also bebefited if their material was up to the grade. I think there are many people here as well who have done significant business due to CPEC.

6. The best part is the fact that it was Chinese money. Pakistan could have never ever invested this much. This crippling economy was not a result of CPEC loans, which are being allocated in succession only when projects begin, but it was the result of negligence of Musharraf, Zardari, Nawaz Sharif, in whose tenures the trade deficit only continued and continued to increase manifolds going near to $30 billion, nothing was done for tax generation and revenue, and this led to large external loans, including those from IMF, to settle it. These external loans were from IMF, ADB and World Bank among other countries, not China. The external debt alone amounted by $40 billion in Nawaz's tenure: what other option do you have when your trade deficit is so high, and your revenue generation so low.

I have seen the effect of CPEC. Everyone is happy with what CPEC has delivered so far in all sectors. CPEC is laying down the foundation and infrastructure for us to go forward in Industries and Science sector, as well as Trade. Its now our job to make vest use of it.

 

[blueazure]

@blueazure

Neel bhai,

meanwhile, on the streets, im seeing a total rat race of people falling over each other to ' dollar lena hai, dollar nahi mil raha' .

Why are peeps running to buy dollar? Roti, kapda and makaan can be bought in PKRs I suppose?

Regards

people are 'desperate' to hedge their falling PKR and all they see is the dollar. media is causing this FUD

i personally use crypto currencies

 

[Baburfromsarmarkand]

people are 'desperate' to hedge their falling PKR and all they see is the dollar. media is causing this FUD

i personally use crypto currencies

Where do you get crypto in Pak?

 

[Zapper]

As for friendly relations with India, we are all go for it given that Kashmir issue is resolved but that would require India to step up to the table because at the moment Pakistan has already stepped up to it.

Since either of us would give up Kashmir, make LoC as the new IB and call it a day...once and for all

 

[Lincoln]

Since either of us would give up Kashmir, make LoC as the new IB and call it a day...once and for all

It would require both parties to talk to come to a decision first.

 

[maximuswarrior]

As long as imports continue to exceed the exports and we don't start taxing the wealthy nothing substantial can happen. This too is only a quick win solution to stabilize an ailing economy to a certain degree. Over the long run we need to really focus on new methods for uplifting the economy. Most of our capital is wasted on debt and interest payments. When you already have limited cash to begin with other projects are likely to suffer.

I was always against more IMF loans, but here we are. There are many theories out there. Some say we don't have a choice and some say we do. One thing is certain. We have to pay back a hefty sum to our lenders. There is no easy escape from this reality.

There is also no denying that we don't have the industrial prowess to generate much needed revenue. There is simply no foundation in place. Our exports are currently very limited.

We knew all along that Imran Khan would have no easy time recovering the economic mess. You cannot correct this mess in a matter of months or a few years. Pakistan is the equivalent of Greece. This nation has lived beyond its means. To compound the problem, the nation is indebted with an extravagant amount of loans.

I am not worried about the currency. That was bound to happen under the current circumstances. What concerns me are the long term objectives of the government. What are we doing today to prevent this from happening in the future?

Has the government made education a top priority to enable a service and knowledge oriented economy? Has the government implemented some kind of taxation policy? Has the government focused on reviving industrialization and manufacturing? It won't happen overnight, but we should have seen some sort of planning. I haven't seen much to date. What I have seen is the same old strategy of survival. We run out of cash and the cycle for more loans begins.

Imran Khan says that this is likely the last IMF installment. This can only sound credible when you have a plan and precise goals in place to prevent the vicious circle.

 

[Zapper]

It would require both parties to talk to come to a decision first.

That would happen anyway if peace talks are initiated but I'm suggesting the most feasible option which can be agreeable to both parties without compromising

 

[blueazure]

Where do you get crypto in Pak?

localethereum.com

localbitcoins.com.pk

 

[Arsalan 345]

IK government either bankrupt pakistan or imran khan absolve parliament and run the entire show.very limited time left for ik.

 

[maithil]

What impact will removal of subsidies from export sector have on economy ? Export certainly will get impacted. Quantum of hit is to be seen.

 

[Concious]

They are also RUNNING EDUCATION CAMPS for MUSLIMS... In China...

Lets say even if we accept all the demands of India
1st is to become secular country and so on and so on....
India can do nothing to help Pakistan
What if we become the best friend what will happen? Nothing
Pakistan will still be in a same state as it is now

I need your take on that...
What can India do