H!TchHiker
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Lol...Are these constant dollars adjusted for inflation or not? If not, any comparison is meaningless.
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Lol...Are these constant dollars adjusted for inflation or not? If not, any comparison is meaningless.
Sadly, Yes.WTF... $40 billions in 5 years by PMLN? Are these figures correct?
WTF... $40 billions in 5 years by PMLN? Are these figures correct?
Here are my thoughts if you add all the loans of previous govt Nawaz has taken more than all previous govt combined. Taking IMF loans means you are going under western clutches. They will takeout energy cost expensive so that foreign investors stay away from Pakistan and their other policies will hurt you. Foreign investors will only come if cost of production in your country is low. If Europe and Pakistan have same production costs people will invest in Europe.You leave things in dire straits thus leave no other option and come here to tell us your loan taking was halal. Is mian his azeez chmachay and dalla dollar dar going to spend the wealth in jahanam too?
@BHarwana your thoughts?
Please keep in mind that half of these new loans were needed to pay off the previous loans.
If they repaid half of previous loan then how come loans became double in 5 years? This is just IMF loans we are talking, don't know how much we in Euro bonds as mofos Dar and company used to go every year to sell those don't know to whom and at what interest rates. On top of that most of on ground project are either investment or loan from China under CPEC? So, where all this money have gone?
Very bad example their corporate debt is not dollar denominated plus China is a mix of market and bank and government sanctioned economy which means that the Chinese gov simple are not bother with default (see the latest P2P lending crash).Taking loans is not a bad. Infact China's Corporate debt is currently 200% of their economy. This is close to 25 Trillion. It's about how strong your nation's economy is.
True......it has been consistent, prolonged and jointly undertaken by the Army and its shurliyaan, PMLN and PPP. Lets not bury this on PTIPlease note that there is a difference in paying off half of the loans and making $20 billion in repayments, since much of the repayment applies to the accumulated interest and not the principal. The effect snowballs with time.
The point to keep in mind is that it has taken joint and consistently prolonged economic mismanagement to add up to the present situation. The previous government was not the devil incarnate, and the present government is not angelic by comparison, and neither were all the governments before them, civil and military both.
The end result is that Pakistan is now in a situation where it cannot hope to repay what has come due without more loans to repay the old loans with interest, no matter who is running the government.
Anybody who says differently is lying due to ulterior motives.
I see a lot of tooi party economist here, but can they explain their mians kartoot? All the borrowing done in the past vs mian tooi sharifs borrowing and the economy was left at its worst!!
@Champion_Usmani @Tameem
Here are my thoughts if you add all the loans of previous govt Nawaz has taken more than all previous govt combined. Taking IMF loans means you are going under western clutches. They will takeout energy cost expensive so that foreign investors stay away from Pakistan and their other policies will hurt you. Foreign investors will only come if cost of production in your country is low. If Europe and Pakistan have same production costs people will invest in Europe.
Look at India at this very moment just because of cheap Iranian energy India attracted the investment of whole world and trump knew this very well. He sanctioned Iran so that Indian growth stops and producers return to USA. As the sanctioned are placed on Iran Indian Rupee starts to fall and investors start to pull out of India. The dare economists to prove me wrong on this.
Now India is struggling for cheap energy and they cannot find it.
Same way with cpec cheap energy investors will ditch USA and India and rush for Pakistan but PTI fails to understand this. PMLN also made the same mistake. With out IMF it will be hard path for Pakistan but with good management adjust distributing resources PTI can manage Pakistan to prosperity. They just have to take people in confidence.
For Pakistan the solution is not loans but the solution is cheap energy. We need cheap energy.
Chabahar port in Iran is not a threat to Pakistan the actual threat to Pakistan is cheap Iranian energy going to India. That is what will hurt Pakistan and that is also what was hurting US economy. India is moving back away from USA because India knows the path ahead along USA is their death but they also need USA so sell and with sanction on Iran India is trap they need to find alternate source of cheap energy and there is none so India is doom.
Coming back to Pakistan we also need cheap energy to thrive. This is the only reason why western countries invade energy rich countries. For Pakistan solution is coal because we cannot get cheap energy from Saudis and Iran is off limits for us due to sectarian reasons and USA. So to avoid every thing else we need to use coal. Dams require more money and only thing left for us is coal now.
Devaluation of Rupee is the main reason why we are in such dire economic situation, govt must take Rupee value in control like dar did for 4.5 years, and not let open market decide the rupee value, or else the rupee will keep devaluate and our debt will keep rising.... This is the basic mistake PTI govt. making, the Rupee is vulnerable (plus rumours of new taxes due to new loan from IMF), so investors are wary of the situation and cautious, that is why investors pulled 270 plus billions from stock market, as a result stock market crashed.
This is the IMF game... They will provide high interest loans to countries and force them to devaluate their currency, thats it, the country is done.
The youthias here are not ready to learn or understand current crisis, all their intents are to defend IK and PTI, and abuse/accuse whoever disagrees with them.