Pakistan may soon be ineligible for World Bank loans

[VCheng]

Yes they help but slowly when the forex reserves run out ( In every five years time )
an IMF package becomes inevitable

And the powers that be ; instead of making real and tough reforms
just kick the can down the road for another government to face the problem

Yes, but it is a balancing act that Pakistan has successfully managed for decades. Overall, Pakistan is in a managed downward glide, economically speaking. As long as the flight path is acceptably smooth, the downward slope can be brushed aside.

 

[El Sidd]

lol

I like this thread.
Filled with positivism and making things easier to understand.

Rolls back the years to 1948 after Jinnah's death.
Some say 5 years some say 15 at most some even don't bother putting a number saying its just a downward decline.

You plan yours and we plans ours. Lets see what happens.

 

[Stephen Cohen]

Yes, but it is a balancing act that Pakistan has successfully managed for decades. Overall, Pakistan is in a managed downward glide, economically speaking. As long as the flight path is acceptably smooth, the downward slope can be brushed aside.

So Pakistan has perfected the art of living dangerously

But then if the status quo persists ; it wont be possible to realise your full economic
potential or become an economic power of some consequence

 

[VCheng]

So Pakistan has perfected the art of living dangerously

But then if the status quo persists ; it wont be possible to realise your full economic
potential or become an economic power of some consequence

Of course, Pakistan has perfected the art of making do with much less that would have driven others under. Its past record of 70 years shows that. And counting.

And as long as the people themselves are happy with the promise of potential, without ever actually realizing it, who are we to argue?

 

[N.Siddiqui]

Pakistan should get hold of all weather friend China to invest in Pakistan stocks, treasury, bonds market and get more stakes.

China has been the biggest invester in US treasury, US bonds in excess of 1.65 trillion USD, get China to invest in SUKUK bonds by Pakistan, even they can start a hedge fund for Pakistan, the iron brothers should prove that they are worth the salt. Last year China FDI in US was about 45 billion USD, in addition to it.

A hedge fund for Pakistan, a bailout by China with the largest foreign exchange reserves in the world, in excess of 3 trillion USD is good for the Sino-Pak friendship...what is the use of all weather friend if they doesn't helps in thick and thin...no sarcasm here.

 

[VCheng]

Pakistan should get hold of all weather friend China to invest in Pakistan stocks, treasury, bonds market and get more stakes.

China has been the biggest invester in US treasury, US bonds in excess of 1.65 trillion USD, get China to invest in SUKUK bonds by Pakistan, even they can start a hedge fund for Pakistan, the iron brothers should prove that they are worth the salt. Last year China FDI in US was about 45 billion USD, in addition to it.

A hedge fund for Pakistan, a bailout by China with the largest foreign exchange reserves in the world, in excess of 3 trillion USD is good for the Sino-Pak friendship...what is the use of all weather friend if they doesn't helps in thick and thin...no sarcasm here.

Investments naturally flow to places where they get the best return for the least risk. This cannot be forced.

 

[N.Siddiqui]

Investments naturally flow to places where they get the best return for the least risk. This cannot be forced.

China is a thrifty player, I think the Gwadar leasing to China for 40 years could have better transaction...Pakistan could had a much better deal...but Pakistan was never a good marketer, cashing on the oft repeated strategic location.

Also Saudia and UAE has helped Pakistan many times more if you look at the deferred payment for oil imported by Pakistan, many dole outs and bailouts, recent 1.5 billion USD gift added to Foreign Exc, reserves. But Saudia herself is in tight spot due to slashed oil prices and about half the income by oil.

But in coming years trade deficit situation will improve with most of the imports, current ones, consisting of CPEC related power plants machinery and road building equipment.

 

[Thəorətic Muslim]

What's the point of devaluation in hopes it'll improve exports when one of the reasons of declining exports is failures in electricity supply?

 

[Chak Bamu]

What's the point of devaluation in hopes it'll improve exports when one of the reasons of declining exports is failures in electricity supply?

Electricity failures are not as severe. The concern is now shifting to cost. That would take about a year to improve, with induction of Neelum-Jhelum, Tarbela IV, & other projects.

 

[Chhatrapati]

PKR's devaluation would be managed to follow a predictable pattern over months.

Improvement in exports is a near certainty that need not be debated. There is no convincing skeptics.

But how do you service the loans if you devalue the currency.

Now since your rating is in stable. If the devaluation results in recession, like the one's happened in Indonesia.
When they devalue their currency to improve the exports.

 

[Thəorətic Muslim]

What's that song by Shahzad Roy "bas ALLAh ba chorday"

 

[313ghazi]

Pakistan may soon be ineligible for World Bank loans

https://tribune.com.pk/story/1481612/pakistan-may-soon-ineligible-world-bank-loans/

woohoo.

Finally the corrupt won't have access to cash, maybe they will go to Dubai and London forever.

 

[diplomat7]

Pakistanis do not understand the dynamics here. There will still be loans just not from the independent body. They will now be loaning from China and other bodies for much higher returns. All in all Pakistan is soon to become a proxy for other nations unless they actually stop taking money from others.

 

[KRAIT]

They are excited to be soon disqualified from taking loans. And may be IMF will follow suit. China wont fund you everywhere. You need money while your economy is shrinking with increasing debt.

Think about your development projects.

Even Chinese private investors will run away when they see such corruption and news.

 

[Chak Bamu]

But how do you service the loans if you devalue the currency.

Now since your rating is in stable. If the devaluation results in recession, like the one's happened in Indonesia.
When they devalue their currency to improve the exports.

Devaluation has never resulted in recession in Pakistan, even as it has gone PRS from 9.8 to 106 /USD in last 33 years with sudden falls happening every now & then.

Scare-mongering may llok like analysis, but its not.