Pakistan 's external debt, liabilities hit record $73 BILLION dollars level

[That Guy]

The stock market mitigates its true. It helped India a lot in the 90s in some very turbulent times.

But its performance (esp from a low base) is no substitute for structural reforms Pakistan sorely needs in its macroeconomy.

And that is the biggest issue. Not only does NS seem to be reversing past reforms, but he seems to be reluctant to pursue further such reforms. NS seems to be happy with the status quo, which is going to be his down fall next elections. CPEC is his only saving grace, but IK has already started his unofficial campaign for 2018 elections, and will likely use the problems NS is causing for CPEC, as well as the issue of status quo, to win the next election.

 

[Mrc]

http://www.express.com.pk/epaper/PoPupwindow.aspx?newsID=1103724756&Issue=NP_LHE&Date=20160902


According to statebank president, misunformation is being spread about stae of external debt by including loans taken by private enterprises and banks into public loan. As per him total foreign public debt stands at around 60 billion usd ...and situation is much better than 3 years ago...

I personally think facebook warriors of a certain political cult type party are responsible for this

 

[Nilgiri]

Not only does NS seem to be reversing past reforms, but he seems to be reluctant to pursue further such reforms.

I am sensing a status quo/lethargy for sure but can you tell me what were the reforms NS has reversed?

CPEC is his only saving grace, but IK has already started his unofficial campaign for 2018 elections, and will likely use the problems NS is causing for CPEC, as well as the issue of status quo, to win the next election.

I wish IK luck for that. Pakistan can do with someone new outside the PPP/PML coin flip.

 

[That Guy]

I am sensing a status quo/lethargy for sure but can you tell me what were the reforms NS has reversed?

I wish IK luck for that. Pakistan can do with someone new outside the PPP/PML coin flip.

Well, for one thing, he's gone back on his word of land reforms. Where as the reforms were suppose to allow the market to dictate prices, now it is the government that will do it. This has already had a negative impact on land prices.

Another is the tax reforms, where as they were suppose to widen the tax net, they've been changed so that the current tax net hasn't widened, but the current payers are paying more. The rich still don't pay their taxes, the corporations aren't paying their taxes, and the middle class that does pay, continue to get screwed.

There is also the issue of privatization, which he vowed to do, during the IMF program, but has since backed away from. The privatization commission is now nothing more than a shell, it may as well close its doors.

The one thing I will praise the government on is health reforms, which NS seems to be deeply interested in. Recently, a lot of progress has been made, to allow health care to be far more affordable for the poor.

 

[Nilgiri]

Well, for one thing, he's gone back on his word of land reforms. Where as the reforms were suppose to allow the market to dictate prices, now it is the government that will do it. This has already had a negative impact on land prices.

Another is the tax reforms, where as they were suppose to widen the tax net, they've been changed so that the current tax net hasn't widened, but the current payers are paying more. The rich still don't pay their taxes, the corporations aren't paying their taxes, and the middle class that does pay, continue to get screwed.

There is also the issue of privatization, which he vowed to do, during the IMF program, but has since backed away from. The privatization commission is now nothing more than a shell, it may as well close its doors.

The one thing I will praise the government on is health reforms, which NS seems to be deeply interested in. Recently, a lot of progress has been made, to allow health care to be far more affordable for the poor.

Fair enough. Does he feel CPEC will have enough impetus to be able to sustain punishing the middle class like that? The effects of CPEC (how big or small they ultimately will be) wont start to kick in till 2020 onwards I would imagine.

To me that seems like setting up a massive wave of anti-incumbency....I mean health care is good and all....but people ultimately want jobs....the poor want to become middle class etc. For that you are very right that market based land pricing is the way to go along with a solid legislation on land acquisition for eminent domain where needed.

Why exactly has he stalled that? To me it would seem it would be a great way to get the rural masses in more productive employment over time and add to the vote bank.

 

[That Guy]

Fair enough. Does he feel CPEC will have enough impetus to be able to sustain punishing the middle class like that? The effects of CPEC (how big or small they ultimately will be) wont start to kick in till 2020 onwards I would imagine.

2018, actually. Most projects are suppose to be completely by 2017-18, and be fully operational by 18-19.

NS believes that CPEC is enough to secure his victory next elections, as long as most of the projects are completed before the next elections begin. I don't doubt that he'll likely lower taxes, before next elections come around.

To me that seems like setting up a massive wave of anti-incumbency....I mean health care is good and all....but people ultimately want jobs....the poor want to become middle class etc. For that you are very right that market based land pricing is the way to go along with a solid legislation on land acquisition for eminent domain where needed.

CPEC is set to create millions of new jobs, which is something NS is banking on to help him claim that he revived the economy completely. I'm unsure as to if this plan will work, as Pakistani are FAR more politically aware than they were a decade ago.

Why exactly has he stalled that? To me it would seem it would be a great way to get the rural masses in more productive employment over time and add to the vote bank.

There was uproar from land buyers and re-sellers, who feared that land value would plummet, if the market were to decide prices. Keep in mind, costs are already ridiculously higher than the actual value. PML-N feared that these people, whom have a lot of influence in the financial market, would cause a problem for the government's future plans.

 

[Finer]

This is alarming news. Good to see Indians are so concerned about Pakistan.

Maybe Indians should send Indian bold actresses that can generate handsome revenue to eradicate debt like they are bringing money for Bollywood. I am Pakistani-lovers Indians won't mind sharing their actresses as they adore the specialty of Pakistani brand.

 

[Nilgiri]

2018, actually. Most projects are suppose to be completely by 2017-18, and be fully operational by 18-19.

Will all the 46 billion dollars be injected by 2018? I thought they stretched on longer than that.

Anyway even with 2018 as the end year for this stage of CPEC, I would say it would need a couple more years for there to be a transfer pick up by the economy. This is normally the lag period for investment to get turned into noticeable further assets which then propagate via the multiplier effect etc.

 

[That Guy]

Will all the 46 billion dollars be injected by 2018? I thought they stretched on longer than that.

Anyway even with 2018 as the end year for this stage of CPEC, I would say it would need a couple more years for there to be a transfer pick up by the economy. This is normally the lag period for investment to get turned into noticeable further assets which then propagate via the multiplier effect etc.

About $33-35 billion of the 46 billion is going to be injected by the end of the 2018 deadline, as most of the projects that are ending then are going to be energy projects, which will have an immediate impact on Pakistan's economy.

But you're right, it will take a few more year for Pakistan and China to turn the corridor into profitable one. Rumor mill has it that once CPEC is complete, China is getting ready to inject $10ish billion more into Pakistan, to solidify CPEC.