Pakistan needs $76.19 billion to pay off debts: IMF

[illusion8]

Pakistani debt thats about to mature was borrowed at higher interest rates. If and i say if our finance minister is smart he will borrow fresh at lower interest rates and pay of the old savings could be in millions/ year. This is assuming pakistan doesn't have the money to pay of the part of the debt thats about to mature which we all know they dont.

Generally speaking fresh loans would come at a higher interest rate with more riders if there is significant risk of defaulting.....reserves of 10 billion and much needed investments in the energy sector and a loan maturity of 76 billion....I don't know how Pakistan can circumvent this?

 

[SQ8]

Generally speaking fresh loans would come at a higher interest rate with more riders if there is significant risk of defaulting.....reserves of 10 billion and much needed investments in the energy sector and a loan maturity of 76 billion....I don't know how Pakistan can circumvent this?

Taliban takeover? become a rogue nation? At least the IMF cant do jack when the Mullahs are in power.
But in all seriousness, plain numbers tell you that defaulting is unavoidable. Moreover, Pakistan's economic plight is quite understated. As long as taxation is restricted to the urban working class, there is no way an economic crash can be avoided. People cite the growth of private sector but forget that certain firms overhire due to government pressure.
For e.g. PwC hires people for Rs8000 a month.. and the level of overstaffing is as such that people get assignments of "arranging and counting printing paper" to somehow keep them busy.

 

[illusion8]

Taliban takeover? become a rogue nation? At least the IMF cant do jack when the Mullahs are in power.
But in all seriousness, plain numbers tell you that defaulting is unavoidable. Moreover, Pakistan's economic plight is quite understated. As long as taxation is restricted to the urban working class, there is no way an economic crash can be avoided. People cite the growth of private sector but forget that certain firms overhire due to government pressure.
For e.g. PwC hires people for Rs8000 a month.. and the level of overstaffing is as such that people get assignments of "arranging and counting printing paper" to somehow keep them busy.

You got a point there, as in speedy economic growth would increase investor confidence multifold and would help Pakistan tide over, but then energy shortfalls, violence and war have created a vicious cycle that would take a lot of doing to get any significant investments to come to Pakistan.

 

[SQ8]

You got a point there, as in speedy economic growth would increase investor confidence multifold and would help Pakistan tide over, but then energy shortfalls, violence and war have created a vicious cycle that would take a lot of doing to get any significant investments to come to Pakistan.

Investors need infrastructure to sustain growth. You cant plant seeds in a land that cannot sustain it. All the miracle makers of Pakistan's economy failed to realize it. I can encourage you spend your money on a Merc but if there are no Petrol stations nearby that car is pointless and will rust.

 

[illusion8]

Investors need infrastructure to sustain growth. You cant plant seeds in a land that cannot sustain it. All the miracle makers of Pakistan's economy failed to realize it. I can encourage you spend your money on a Merc but if there are no Petrol stations nearby that car is pointless and will rust.

You also have an added problem of high population growth and a sizable number of them being young and would be looking for jobs and a livelihood. Is there anything that your leaders are doing right? not exactly the right time to pick a fight with us Indians over Kashmir firing across the border I would say.

I believe good relations with India could have provided with some decent investments - what with us having a few things in common - but then even that situation is messed up atm.

 

[SQ8]

You also have an added problem of high population growth and a sizable number of them being young and would be looking for jobs and a livelihood. Is there anything that your leaders are doing right? not exactly the right time to pick a fight with us Indians over Kashmir firing across the border I would say.

I believe good relations with India could have provided with some decent investments - what with us having a few things in common - but then even that situation is messed up atm.

Well, picking the fight is where I disagree. somehow that simply contrasts with everything that is coming out of the grapevine on the incident along with official statements. The establishment looks at benefits quite well for itself and under no logic does boiling the water on LoC meet that prime directive especially in this situation. There is more that statement than just your side of the statement or a total rejection of infiltration.

A businessman like Nawaz would see the second statement exactly as it is.

 

[illusion8]

Well, picking the fight is where I disagree. somehow that simply contrasts with everything that is coming out of the grapevine on the incident along with official statements. The establishment looks at benefits quite well for itself and under no logic does boiling the water on LoC meet that prime directive especially in this situation. There is more that statement than just your side of the statement or a total rejection of infiltration.

A businessman like Nawaz would see the second statement exactly as it is.

You cannot deny the fact that there is urgent and increased momentum in Pakistan and by NS in trying to highlight the Kashmir issue which btw is quite a thorny issue for us. There was significant movement towards at the least business relations between India and Pakistan under Zardari where I believe he kind of understood that trade relations with India - we are not that hell bent on great infrastructure needs for investing because we hardly have that in our country and we know how to circumvent that - was what would have driven Pakistani economy forward to some extent.

NS is all for blowing up the Kashmir issue making it difficult for MMS or the GOI to even consider forward movement in any trade relations with Pakistan. Nawaz might be a businessman - but your present situation requires an economist more than a businessman.

 

[SQ8]

You cannot deny the fact that there is urgent and increased momentum in Pakistan and by NS in trying to highlight the Kashmir issue which btw is quite a thorny issue for us. There was significant movement towards at the least business relations between India and Pakistan under Zardari where I believe he kind of understood that trade relations with India - we are not that hell bent on great infrastructure needs for investing because we hardly have that in our country and we know how to circumvent that - was what would have driven Pakistani economy forward to some extent.

NS is all for blowing up the Kashmir issue making it difficult for MMS or the GOI to even consider forward movement in any trade relations with Pakistan. Nawaz might be a businessman - but your present situation requires an economist more than a businessman.

The momentum is there, but seems to have stemmed after the LoC spate. Nawaz's statements before that were quite different. Thus the issue is the catalyst to that momentum which is disputed as to who started it(India and Pakistani state not being the only players).

 

[illusion8]

The momentum is there, but seems to have stemmed after the LoC spate. Nawaz's statements before that were quite different. Thus the issue is the catalyst to that momentum which is disputed as to who started it(India and Pakistani state not being the only players).

NS is suspected to be close to the Kashmiri groups in Pakistan and could be delivering on his election promise, apart from that, I strongly doubt China being key here - essentially to keep India on its toes and tied up in knots so we don't venture too far ahead from the Indian Ocean.

As for a quick fix for Pakistani economy, an open market between India and Pakistan would have done wonders for Pakistan both in trade and in investments or even buying gas and oil from Iran circumventing US and Saudi pressure and sanctions or utilizing trade routes for Afghanistan.