Pakistan seeks rescheduling of $27 bln bilateral debt-finance minister

[ARMalik]

Fuking Beggars asking for more Charity - what a surprise ! I am sure Mega Beggar bajwa must be really proud of himself for ensuring that this begging goes on !!

 

[CrazyZ]

Exactly, this is what is surprising. Every time someone in USA breaks wind, Pakistan government and commentariat go to Defcon 1. But, running out of petroleum or food - crickets. Not a squeak from anyone about conservation or economizing imported petroleum. No exhortation about public transport or growing food around homes as in victory gardens.

The most stunning example of this.......I pointed out on this forum a few years back. Imran Khan wanted the nation to pray that oil be found at the Kekra-1 offshore drill site but PTI never took any actions within its power to actually reduce oil consumption. PTI opposed mass transit (Orange Line) and kept oil subsidies in place even when forex was draining and oil was over $100 a barrel. This was the dumbest decision of PTI. Think about.....they took foreign loans to subsidize oil prices and consumption when they did not have forex or government budget to support it. In general, I would rate PTI higher then PML or PPP but that was not a smart thing to do.

 

[Mr.Green]

Pakistan should increase the list of luxuries are that are banned for imports. Get smuggled petrol from Iran, make agreement with Russia for cheap oil & gas. Increase tax on large businesses and decrease indirect tax on the ordinary people in the form of fuel and utility prices. Make people friendly policies not the other way around which is currently happening. Cut back on military budget and stop all military purchases for five years until we get out of this debt trap. Do BOT agreements with Chinese companies for building back the infrastructure destroyed in floods. ISPR should make dramas propagating simple living and against consumerism and luxurious lifestyle.

 

[Genghis khan1]

Pakistan should increase the list of luxuries are that are banned for imports. Get smuggled petrol from Iran, make agreement with Russia for cheap oil & gas. Increase tax on large businesses and decrease indirect tax on the ordinary people in the form of fuel and utility prices. Make people friendly policies not the other way around which is currently happening. Cut back on military budget and stop all military purchases for five years until we get out of this debt trap. Do BOT agreements with Chinese companies for building back the infrastructure destroyed in floods. ISPR should make dramas propagating simple living and against consumerism and luxurious lifestyle.

Countries function based on income Tax generated from middle class activity (Tax the 90%). Tax breaks are given to cooperations and wealthy as long as the are reinvesting money back into R&D and economy and generate more jobs. Millionaires pay 0% income Tax in US. Still US is the richest nation in the world.

Pakistan import $600 million of Tea. Start with Tea ban. People are addicted to Tea like a drug. Idk why is Tea not harm like bhang.

 

[epebble]

Pakistan should increase the list of luxuries are that are banned for imports. Get smuggled petrol from Iran, make agreement with Russia for cheap oil & gas. Increase tax on large businesses and decrease indirect tax on the ordinary people in the form of fuel and utility prices. Make people friendly policies not the other way around which is currently happening. Cut back on military budget and stop all military purchases for five years until we get out of this debt trap. Do BOT agreements with Chinese companies for building back the infrastructure destroyed in floods. ISPR should make dramas propagating simple living and against consumerism and luxurious lifestyle.

All that will help a little but the big three are*:

(1) Major reduction in petroleum import or oil prices come down drastically to, say, $60 or so
(2) Spurt in remittances
(3) Spurt in exports

Absent these 3, glide path is vectoring straight to Sri Lanka.

*Food import is considered essential

 

[Mr.Green]

Countries function based on income Tax generated from middle class activity (Tax the 90%). Tax breaks are given to cooperations and wealthy as long as the are reinvesting money back into R&D and economy and generate more jobs. Millionaires pay 0% income Tax in US. Still US is the richest nation in the world.

Pakistan import $600 million of Tea. Start with Tea ban. People are addicted to Tea like a drug. Idk why is Tea not harm like bhang.

Trickle down economy is a myth. Corporations should be taxed at least 40% as the owners are making billions. Zakat should be started on wealth of rich individuals so that there is movement of money in the economy out of the real estate.

 

[PradoTLC]

Pakistan seeks rescheduling of $27 bln bilateral debt-finance minister​

By David Lawder
and Jorgelina Do Rosario

WASHINGTON, Oct 14 (Reuters) - Pakistan's new finance minister, Ishaq Dar, told Reuters on Friday that he will seek rescheduling of some $27 billion worth of non-Paris Club debt largely owed to China, but will not pursue haircuts as part of any restructuring.
In an interview, Dar ruled out the possibility of a default on Pakistan's debt, an extension of the maturity date on bonds due in December or a renegotiation of Pakistan's current International Monetary Fund program.

The veteran finance minister said multilateral development banks and international donors have been "quite flexible" with ways to meet Pakistan's external financing needs estimated at about $32 billion after devastating floods. Some of this may come from reallocating funds from previously approved, slower-disbursing development loans, he added.
Dar, who is participating in the IMF and World Bank annual meetings just over two weeks after taking office, said that Pakistan will seek restructuring on equal terms for all bilateral creditors.

He declined to comment when asked whether he thought it would be difficult to persuade China, creditor for about $23 billion of the debt, to participate.

But asked whether Pakistan would seek to reduce debt principal, he said "rescheduling is fine, but we are not seeking a haircut. That's not fair."

RUPEE DEFENDER​

Dar, who served as Pakistan's finance minister three previous times -- most recently from 2013 to 2017 -- is known as a staunch defender of the rupee . He said Pakistan has not engaged in physical intervention in the currency, which has been battered this year by a strong U.S. dollar, but which has rallied some 10% since his appointment.


Dar said that he views the "true value" of the rupee at a level under 200 to the dollar. It last traded at 219.

"I am for a stable currency, I am for a realistic rate. I am for market-based, but not subject to a currency being taken hostage" and making speculators billions of dollars.

BORROWING OPTIONS​

Asked whether he discussed with IMF officials the possibility of borrowing from the Fund's new Resilience and Sustainability Trust for middle-income countries, Dar said "We have discussed all options."

The Pakistan finance minister added that the IMF's new emergency "food shock" borrowing window may also be a good fit for the country, which has lost crops due to devastating floods and may need to import up to half million of tons of wheat in the next year.

"In this scenario, we have the possibility to approaching and accessing this facility," he said.

so another U turn?..

Govt will not seek Paris Club debt restructuring: Dar​

Govt will not seek Paris Club debt restructuring: Dar

After consultations with PM, it was decided that it is not in the nation's interest to ask for a restructuring, says Dar.

www.dawn.com

 

[Genghis khan1]

US is a success because this society reward those that use their intelligence and hard work to be successful and end up creating job for others. US tax system don’t penalize rich just because they are successful.

Let say, there are 2000 rich families in n Pakistan running some sort of business vs 200 million average people. Tax rich 40%, you may get 1/10th of one years $45 Billion budget because they are just 2000 families.

You still have to Tax the 200 million average working class to fill 9/10 of the budget.

Putting Ban on 200 luxury cars and these stupid acts are just superficial things. Ban unless import in large quantities that 90% of the people are using. Like tea, fancy food items. Cosmetic products. That’s how deficit is controlled.


Penalize rich and successful and they will leave for countries that reward hard work with fair taxation system. Leaving lazy losers out of job complaining.

Trickle down economy is a myth. Corporations should be taxed at least 40% as the owners are making billions. Zakat should be started on wealth of rich individuals so that there is movement of money in the economy out of the real estate.

Zakat is 2.5% same for everyone. Average person and the rich, same rate.

 

[Enigma SIG]

I offer our politicians be prostituted in return for the moeny they shoced in their bungholes

 

[American Pakistani]

Is that a civilized word for ‘default’?

That's Daronomics 101 by PMLN ishaq dar. Take as much loans as possible and"reschedule" it for next governments.

*Food import is considered essential

It's laughable that a primarily agriculturally rich country importing food.

 

[epebble]

That's Daronomics 101 by PMLN ishaq dar. Take as much loans as possible and"reschedule" it for next governments.


It's laughable that a primarily agriculturally rich country importing food.

Edible oil has to be imported. In 2022, $3 Billion is spent on palm oil.

But this is small compared to Petroleum products: More than $18 Billion.

Pakistan's Balance of trade is simple to understand - Earnings from all exports goes to import of petroleum products.
All other imports have to be balanced by remittances and borrowings.

Economy of Pakistan - Wikipedia

en.wikipedia.org

 

[American Pakistani]

Edible oil has to be imported. In 2022, $3 Billion is spent on palm oil.

But this is small compared to Petroleum products: More than $18 Billion.

Pakistan's Balance of trade is simple to understand - Earnings from all exports goes to import of petroleum products.
All other imports have to be balanced by remittances and borrowings.

Economy of Pakistan - Wikipedia

en.wikipedia.org

Edible oil can be produced in a country like pakistan. We import mostly unhealthy edible oil instead, we can produce healthy oils like olive or apricot or peanut or mix/assorted of all.

We also need to have electric preference policy. At least rickshaw and taxi should be electric and so do busses and govt vehicles.

 

[epebble]

Edible oil can be produced in a country like pakistan. We import mostly unhealthy edible oil instead, we can produce healthy oils like olive or apricot or peanut or mix/assorted of all.

We also need to have electric preference policy. At least rickshaw and taxi should be electric and so do busses and govt vehicles.

If you see https://en.wikipedia.org/wiki/Agriculture_in_Pakistan#Production
All those crops are unknown in Pakistan. You can't expect people to change their food preferences easily.

As for Electric vehicles, capital cost is high. There is no charging infrastructure. The best move to forestall default in the short run is to greatly cutdown petroleum consumption by private vehicles and improve public transport and encourage bicycles and walking.

 

[Wood]

Edible oil can be produced in a country like pakistan. We import mostly unhealthy edible oil instead, we can produce healthy oils like olive or apricot or peanut or mix/assorted of all.

Certainly possible for Pakistan to produce edible oil. But can it be produced with enough efficiency and without subsidies at a cost that is lesser than oil import costs? If the answer was yes, then Pakistan would already be not just self sufficient but also a net exporter of edible oil. Pakistan will need a lot of big time investors who can kick start such production.

 

[Cheepek]

"non Paris debt"? Is it bilateral debt? China, UAE, SA, Qatar et al?