Pakistan economy is on the verge of collapse: Financial Times

[khansaheeb]

Pakistan economy is on the verge of collapse: Financial Times​

Analysts warn that Pakistan’s economic situation is at risk of following Sri Lanka, says FT report

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News DeskJanuary 26, 2023

Photo: File

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Pakistan’s economy in on the verge of collapse as thousands of containers are stuck up at the seaports due to the severe shortage of dollars, a report published in the Financial Times warned on Thursday.
Analysts warn that Pakistan’s economic situation is becoming untenable and is at risk of following Sri Lanka, where a lack of foreign reserves triggered severe shortages of essential goods and eventually led to a default in May, the British daily said.
The report quoted officials as saying that factories such as textile manufacturers were closing or cutting hours to conserve energy and resources.
The difficulties were compounded by a nationwide blackout on Monday that lasted more than 12 hours. “Already a lot of industries have closed down, and if those industries don’t restart soon, some of the losses will be permanent,” Sakib Sherani, founder of Macro Economic Insights in Islamabad, told FT.
Also read: Pakistan fast heading into economic meltdown
Foreign reserves held by the central bank have dropped to under $5 billion, less than a full month of imports with the federal government remains in a deadlock with the IMF over reviving a $7 billion bailout package that stalled last year.
“Every day matters now. It’s simply not clear what the way out is,” FT qouted Abid Hasan, a former adviser to the World Bank, as saying. “Even if they get a billion [dollars] or two to roll over . . . things are so bad that it’s going to be just a Band-Aid at best.”
Planning Minister Ahsan Iqbal told the Financial Times that the country had “drastically” reduced imports in an attempt to conserve foreign currency.
Analysts said this included restricting banks from opening letters of credit for importers, leading a steel industry body this week to threaten halting production.
The IMF and the PM Shehbaz Sharif-led government are at loggerheads over the former’s demand that Pakistan accepts economic reforms such as raising subsidised energy prices.
“If we just comply with the IMF conditionalities, as they want, there will be riots in the streets,” Iqbal told FT. “We need a staggered programme . . . The economy and society cannot absorb the shock or cost of a front-loaded programme.”

I am trying to send dollars to Pakistan and the US won't let me, it seems to be a unified conspiracy to bankrupt Pakistan with Pakistani pawns.

 

[epebble]

how much evidence do you have to support your views?

Pakistan Gives China a 40-Year Lease for Gwadar Port​

Pakistan Gives China a 40-Year Lease for Gwadar Port

On April 20, Pakistan?s minister for ports and shipping announced that his ministry has given a Chinese?firm a forty-year?lease for the strategic

www.maritime-executive.com

PUBLISHED APR 27, 2017 9:30 PM BY THE MARITIME EXECUTIVE On April 20, Pakistan’s minister for ports and shipping announced that his ministry has given a Chinese firm a forty-year lease for the strategic Port of Gwadar. The lessee, state-owned China Overseas Port Holding Company, has been building out the port’s infrastructure since 2013. Under its new long-term contract, it will retain over 90 percent of revenue from Gwadar’s marine operations, plus 85 percent of the revenue from the management of an adjacent free zone. It will also benefit from the deep tax exemptions that Pakistan has granted to Chinese companies for projects related to the China Pakistan Economic Corridor (CPEC), a network of transportation infrastructure stretching from the Arabian Sea to the Chinese border. “We hope to create a new economic development model for the port by transplanting China’s experience in building special zones or economic development areas to Pakistan, in a bid to drive the country’s industrial transformation,” said COPHC CEO Zhang Baozhong, in comments to China Daily. The port is strategically important for China for several reasons. First, it offers China's navy a convenient base of operations near the Strait of Hormuz. Its development was originally proposed for naval purposes, and China is already contributing military resources for the port’s security needs. Second, it is the project cargo port for the construction of CPEC. And third – perhaps most important of all – it may become the receiving terminal for a one million bpd oil pipeline that would run across Pakistan into western China. If built, the pipeline would allow China to bypass the Strait of Malacca for a significant fraction of its Middle Eastern crude imports.

Some people may feel this is unfair. I think this is entirely fair. Pakistan is such a difficult place to do business (anyone knows how many Chinese have been murdered by terrorists?) that these terms reflect the very high actuarial costs.

 

[Olympus81]

90% of revenue. Thats suicide.

Pakistan’s institutions really need to learn how to protect its country’s interests.

No wonder you have protests and civil strife popping up here and there.

 

[Imran Khan]

90% of revenue. Thats suicide.

Pakistan’s institutions really need to learn how to protect its country’s interests.

No wonder you have protests and civil strife popping up here and there.

most of those whom work in insititutions have duel nationality they dont give flying FFFF to paksitani interests

 

[MilSpec]

If the Indian establishment has any brains, it needs to prop up the politicians on both sides with as much financial support as they need. This current crop of Pakistani leaders can damage Pakistan more than any Indian action could ever had.

 

[Path-Finder]

yup, halve the defense spending year on year until it is on par with that of the Shonar Desh, cede hegemony to bharat, let them take 55k+women per annum and you'll be as 'prosperous' as bengalis are.

long live imam e ahzam khan long live bongabohndu mujeeb! amen!

in both instances the haramzadgi of GHQ never seizes to amaze us.

 

[Menace2Society]

30 years of PMLN and PPP coming to fruition.

 

[ghazi52]

..,

https://www.facebook.com/video.php?v=955905572064295

 

[MilSpec]

30 years of PMLN and PPP coming to fruition.

Disregarding 76 yrs of Army's subterfuge, I guess?

 

[ziaulislam]

Thoroughly enjoying this. Predicted this right after Imran Khan's removal.

People deserve this for doing this to my beloved leader.

You sow what u reap. U did bad with maryum she is back with revenge

Go maryum... get these poor folk

that is 30 years old saga



Tell us how $50 billion in CPEC investments has not made a dent in Pakistan's economic fortunes. A fraction of that money in India by American companies has done wonders for the Indian economy
blaming things on Indians do not change things

First it's not 50b$
It's more like 20b$

Second that's nothing for size of country like Pakistan

 

[The Accountant]

Excuse me, but please stop lying. Where have I supported any crooks? Just because I do not share your views about PTI, since I do not buy into any personality cult of any party or the army, does not mean that I am sick, and you are not., or that you have the exclusive right to declare who can care about Pakistan and who cannot, and in what manner.

Please do not reply to me again, unless you can comprehend the above. Thank you.

Here the news is Pakistan economy is collapsing and ur comment is condemning PTI demand of election rather than any real input on the economic situation and person responsible and u r trying to make us belief u r not supporting crooks lolz ...

If ur house is rob and thiefs are right in front of u and your neighbour start complaining to police about u misbehaving with him and not paying property tax on time then what will u say about neighbour ... Isnt he protecting the thieves?

 

[I.R.A]

Exact opposite. As this analysis makes a convincing case.

Analysis of a vlogger.

I am not a diehard fan of IK (just want him to be in power for enough time so that the other political dynasties vanish), but this much I am witness to that Muslim world (specially common people) respect him (based on my stay in another Muslim country).

 

[epebble]

I am witness to that Muslim world (specially common people) respect him (based on my stay in another Muslim country).

Can you tell the names (of the countries)? I am curious. When was this? After street agitations, 'Cipher', 'Prime Minister tried to Kill me", and now, 'Ex-President is trying to kill me'? How does he know? Well, his dear wife, the Godwoman (who tried to swindle him of his estate by marrying violating Islamic law) dreamt it. You call this Prime Minister material for a nation of 220 million in a situation it is in now?

 

[I.R.A]

But Pakistan's present crisis is here and now,

It is just a matter of how long they want this show to continue, except for PTI supporters. We know very well Pakistan has always been in crisis (mostly self made).

The choice not to intervene is more of a personal choice rather than anything else, in the end, constitution is what? a piece of paper that can at any time be thrown in dustbin, judges can be bought or harassed into submission, people will once again distribute sweets, who wouldn't after all this naked show of incompetence by politicians.

Can you tell the names (of the countries)? I am curious. When was this? After street agitations, 'Cipher', 'Prime Minister tried to Kill me", and now, 'Ex-President is trying to kill me'? How does he know? Well, his dear wife, the Godwoman (who tried to swindle him of his estate by marrying violating Islamic law) dreamt it. You call this Prime Minister material for a nation of 220 million in a situation it is in now?

You can yourself watch the body language of the leaders of those countries meeting IK vs current PM.

North Iraq is the last place I would have expected people to know anything about IK, but they seem to like the guy.

Who tried to kill him or not is domestic politics and statements, got nothing to do with international standing and relations.

 

[Imran Khan]