Pakistan Debt to Rise to $74 billion by 2014

[blain2]

India also has approximately $300 Billion in Forex Reserves.

Having said that. External debt by itself means nothing, USA has around 95% external debt & Japan has around 180%, same is the case with many other developed countries. But these countries also have big and robust economies a luxury that Pakistan does not have. It is in this context that the situation takes a sinister form. Pakistan's economy is already is a very bad state, afloat only because of foreign aid. What happens when this aid dies down? The Americans cant perennially keep giving aid.

Nothing happens. At the worst of it, Pakistan defaults. I doubt that would happen, but in case it does, Pakistan certainly won't be the only country to have done so given the situation on the ground.

Comparing Pakistan's economy with that of India's is an exercise in futility. Maybe a comparison can be drawn with today's Pakistani economy with that of India's in 1991 when India was close to defaulting (but never did).

The bottom line is that if there isn't enough fiscal space left to cater to even the basics because of loan servicing, then Pakistan may not have a choice but to default. As in the world of cricket, Pakistan has more to clean in house than blame others for the economic misfortune which constantly haunts her.

This is a sad state of affairs but one that most of us Pakistanis are extremely well aware of. Any helping hand is a crutch. Maybe its good for help with the flood relief, but beyond that, no amount of help can rectify Pakistan's economic problems unless and until Pakistani state sweats and toils to fix the problems and set the economy back on track.

 

[Isaq Khan]

Nothing happens. At the worst of it, Pakistan defaults. I doubt that would happen, but in case it does, Pakistan certainly won't be the only country to have done so given the situation on the ground.

Comparing Pakistan's economy with that of India's is an exercise in futility. Maybe a comparison can be drawn with today's Pakistani economy with that of India's in 1991 when India was close to defaulting (but never did).

The bottom line is that if there isn't enough fiscal space left to cater to even the basics because of loan servicing, then Pakistan may not have a choice but to default. As in the world of cricket, Pakistan has more to clean in house than blame others for the economic misfortune which constantly haunts her.

This is a sad state of affairs but one that most of us Pakistanis are extremely well aware of. Any helping hand is a crutch. Maybe its good for help with the flood relief, but beyond that, no amount of help can rectify Pakistan's economic problems unless and until Pakistani state sweats and toils to fix the problems and set the economy back on track.

It will be incorrect to compare Indian economy of 1991 because there never have been serial bomb blasts regularly, suicide attacks etc.

Also, India have every system in place to take it on to next level. Even then govt. started economic liberalization step by step.

India was having number of world class or at least semi world class education institutes, large pool of enterprises, skilled labors etc.

But pakistan have still not abolished feudalism to begin with.

 

[Isaq Khan]

We have gold too to pay external debt.

Reko Diq: Pakistan’s $100 billion gold mine should be used to pay off national debt and throw out IMF The Dawn

Plz be real, we are not talking about conspiracy theories.

World official gold holding (December 2009)

Gold (tonnes) Gold's share of national forex reserves (&#37

India 557.7 | 7.5%

Pakistan 65.4 | 15.8%

Gold reserve - Wikipedia, the free encyclopedia

BTW, Gold Mine reserves in India are too big to mention, just google if you want.

http://www.commodityonline.com/news/Gold-mining-rush-in-India-Zimbabwe-31488-3-1.html

http://www.commodityonline.com/news/Gold-Rush-India-to-mine-20000-tons-gold-reserves-15715-3-1.html

 

[Renegade]

Nothing happens. At the worst of it, Pakistan defaults. I doubt that would happen, but in case it does, Pakistan certainly won't be the only country to have done so given the situation on the ground.

Defaulting is very serious business. Look at what happened to Argentina after they defaulted - inflation, unemployment, civic unrest, political instability - presidents came & went in a matter of months some even in days, property deflation, savings wiped out, economic stagnation & lack of capital for investment.

Yes countries have defaulted in the past but at an enormous cost, given the situation can Pakistan afford it?

Comparing Pakistan's economy with that of India's is an exercise in futility. Maybe a comparison can be drawn with today's Pakistani economy with that of India's in 1991 when India was close to defaulting (but never did).

Never compared India & Pakistan here. Just made point to the poster who had got India into the equation.

But there are still fundamental differences between India in 1991 & Pakistan. India came very close to defaulting due to its closed economy & it boomed after opening up as foreign capital poured in, but Pakistan is already an open economy with a not so positive investment environment. Growth enjoyed by Pakistan in the last few years has been due to injection of foreign capital due to aid. With no other form of investment i can only see the doldrums.

The bottom line is that if there isn't enough fiscal space left to cater to even the basics because of loan servicing, then Pakistan may not have a choice but to default. As in the world of cricket, Pakistan has more to clean in house than blame others for the economic misfortune which constantly haunts her.

This is a sad state of affairs but one that most of us Pakistanis are extremely well aware of. Any helping hand is a crutch. Maybe its good for help with the flood relief, but beyond that, no amount of help can rectify Pakistan's economic problems unless and until Pakistani state sweats and toils to fix the problems and set the economy back on track.

Well good luck with that but unless there is realization at the very top nothing will help. The security state mentality is also an issue but i will let it pass due to the amount of trolling it is likely to attract.

 

[foxbat]

It will be incorrect to compare Indian economy of 1991 because there never have been serial bomb blasts regularly, suicide attacks etc.

Also, India have every system in place to take it on to next level. Even then govt. started economic liberalization step by step.

India was having number of world class or at least semi world class education institutes, large pool of enterprises, skilled labors etc.

But pakistan have still not abolished feudalism to begin with.

Alleged unmined Gold lying in the mines is not considered as Forex reserves. It will take decades to mine that gold.

The $ 16 billion i mentioned includes Pakistan's current gold reserves too.

 

[Hutchroy]

Comparing Pakistan's economy with that of India's is an exercise in futility. Maybe a comparison can be drawn with today's Pakistani economy with that of India's in 1991 when India was close to defaulting (but never did).

It is well known that India Mortgaged a large part of her Gold Reserves (I think it was to the Bank of England) in 1992 - 1993 and then worked to "pay off the Mortgage" and got back her Gold.

Around this period Pakistan's Per Capita GDP was about Eighty Per Cent higher than that of India. Now India's Per Capita GDP is close to that of Pakistan.

How did Pakistan lose its Eighty Per Cent Edge over India?

That would well worth knowing!

 

[BATMAN]

What a sick and vulgar "sense of humour"

How you guess it was humor?

I wonder why such rants are not deleted?

 

[T-Faz]

I heard about the same Hillary Clinton mentioned this in one of her interviews. She said people in Pakistan do not pay taxes and excepts others to donate (something of that sorts).

This is what she said:

DAWN.COM | Front Page | Hillary urges rich Pakistanis to pay more tax

Clinton has seen the amount of rich people that reside in Pakistan. Just go through Defence, Clifton, Bath Island and Sea View in Karachi alone to see what I mean.

 

[BATMAN]

Is it crime to be rich in Pakistan?
It sound like a jealous thug planning to robe rich.
She doesn't seem to be bothered by the increased corruption and estates of our ministers in Europe and US.

BTW... why mods. are derailing the subject matter, in a willing ping pong with trolls????

As a best suggestion to collect revenue is to impose 20% transit tax on all transit trade through Pakistan by NATO and US and impose 50% transit tax on all transit trade through Pakistan by India and Afghanistan.

 

[T-Faz]

Is it crime to be rich in Pakistan?

Who said it is a crime, the rich are just being told to pull their weight and pay back to the country that gave them the opportunity to attain such a financial status.

It sound like a jealous thug planning to robe rich.

??

She doesn't seem to be bothered by the increased corruption and estates of our ministers in Europe and US.

She was referring to these ministers as well.

BTW... why mods. are derailing the subject matter, in a willing ping pong with trolls????

This is linked to the topic at hand, in broader terms, tax and debt of a nation are observed closely to look at the economic condition of a country. If tax collections are high, then the government would not have to ask for more loans to deal with our financial issues.

If you still deem it be 'derailment', report it.

 

[BATMAN]

Who said it is a crime, the rich are just being told to pull their weight and pay back to the country that gave them the opportunity to attain such a financial status.

Since rich of Pakistan are termed guilty.
I did not understand your pay back suggestion what formula define to pay back for what?

She was referring to these ministers as well.

Referring to houses may have different meanings! perhaps i mistook.

This is linked to the topic at hand, in broader terms, tax and debt of a nation are observed closely to look at the economic condition of a country.

No it was not... you just supported a rant.
He is not interested in the link, neither he failed to find it and neither is it of any use to him, neither he demanded it.

If you still deem it be 'derailment', report it.

Do you delete posts only when they are reported?

 

[Materialistic]

Remove feudalism, cut military budget by half at least and crack on punjabi taliban. Then you will see pakistan a develop country as that famously predicted 2025 date.

Well, for that cut India's defence budget to half and ours will automatically fall down. Rest all we will handle. Our military budget is the only thing in India's hands.=D

Just a joke no sarcasm nothing serious!!!

 

[Skywalker]

A bit off topic but i was just wondering. We have 180 million people, say for example a human kidney was worth 1000$ US, if 180 million people donated 1 kidney for their country that would give us an astounding: $180,000,000,000.

Ask not what your country can do for you, but rather what you can do for your country.

Show example by selling your kidney first for the country and then the rest will follow you.

On a lighter note havent you heard about the basic law of economics about demand and supply, if there is a massive supply and less demand then the price is bound to go down than your estimated price.

Now enough for the jokes and get real, rather than selling kidneys why not give some quality time of yours to the nation with your expertise and skills in order to rise from the ashes. How about that?

 

[gowthamraj]

You are so pathetic that you can't differentiate between internal and external debt.

India internal debt is 78% to GDP ratio.
GDP vs National Debt by Country |

List of sovereign states by public debt

It's a internal debt which is 58percent of GDP

 

[Storm Force]

Can somebody EDUCATE this FOX poster the Difference between External Debt and National Debt.

National Debt is completely different it is a internal debt owed to the Inland revenues.

Pakistan is some serious **** financially.

IMF USA grant aid and soft loans can only go so far.

This exactly why when people wonder why Pakistan military cant find even a $1.5 billion upfront for a Thunder future upgrade.

They are in terrible mess and theres now light at the end of the tunnel AS YET.