Pakistan to approach IMF for a bailout, Asad Umar announces

[Indus Pakistan]

Borrowing money from IMF has impacted Pakistan macroeconomic policies in many ways especially in the last two decades

Every government never went trough the programme. It's like going to doctor when terribly sick and taking medication for few days - as soon as slight improvement takes place you stop the medication. Not completing the full course means the underlying cause remains which means it comes back to bite. It is cyclical.

 

[shah_123]

You almost sound gleeful at this prospect.
Are you sure you are not an Indian troll?

Get your brain checked.

No he won't. People trust him more than anybody else. With proper governance , Pakistan will come out from a harsh economic period. This is the test for PTI as well.

You are pasting tweets of PTI/Asad which are 4 years old when Pakistani circular debt was $10 billion lesser unlike today. Had PML-N left Government with $15 billion reserves than $6 billions, PTI would had never opted for IMF. So in that time, Asad/Imran tweets did make sense.

People come and people go, but the divine rules always remains the same.

“O you who believe, fear Allah and give up what remains of your demand for riba, if you are indeed believers. If you do it not, take notice of war from Allah and His Messenger.”Qur’an 2:278-279

 

[Rusty]

Get your brain checked.



People come and people go, but the divine rules always remains the same.

“O you who believe, fear Allah and give up what remains of your demand for riba, if you are indeed believers. If you do it not, take notice of war from Allah and His Messenger.”Qur’an 2:278-279

you are the one making retarded comments.

 

[shah_123]

you are the one making retarded comments.

you go against the commandments of ALLAH swt', you will get humiliated.

Imran Khan's humiliation has started, I said it again, Jao go karna hai kar loa.

 

[Musafir117]

Lakh lanat
It’s an ultra great super sayajin u turn of all time, he don’t need to do KHUDKUSHI srif chulu bhar pani mein baddi nak dal le aur zinda rahe for more embarrassment.

 

[bafxet]

Ah what a shame ....not so soon where have all the tall gone.

 

[ziaulislam]

Local coal? First 660mw plant from Thar will be completed next year. N league added 11,000MW in last 3 years. No one can predict oil prices. It can crash down to $40.

N faced similar problems that PTI is facing now in terms of repayment of loan. But at the same time it also have to face less terrorism, less load shedding, etc Yes circular debt have increased and thats where PTI need to work instead of giving excuses 24/7. We already knew about that for last many years. Now they have to come with solution to recover money from defaulters and thief. The amount of electricity stolen per year in Pakistan and defaulted is equivalent of thousand london apartments. PTI have its priorities wrong.

Sir federal govt is not putting a penny in thar coal it sino sindh and engro sindh

Engro is going slow because it doesnt has money

Imported coal Should have been the way ..it would have cost 4-5 cents vs now 12 cents of LNG (7when.oil.was 40)

Regarding PTI..i havent seen any policy yet..still waiting ...
Yes they should waste time and they arent but they will not allow PMLN LYING EITHER THAT ITS PTI that is responsible for the mess because they arenot

Pmln wasted the golden era of low oil prices..there isnt much wiggle space now...pppp kept the deficit minimum when oil was 100-140

What now.
Switch oil plants to coal/gas not easy we dont have refineries
Encourage coal/hydro
Privitze distribution
Invest in distribution
Park the circular debt in powet holding and ensure fiscal disciplines from here on wards
Privitize all LNG plants use that money to invest in distribution

The interets rate it self on 1600 billion rupees will be at least 200 billion rupees a year

 

[Baghial]

Also from Debt perspective we don't even show up on radar

1. United States – Total debt: $18,286,510,000,000
2. United Kingdom – Total debt: $7,499,400,000,000
3. France – Total debt: $5,250,608,000,000
4. Germany – Total debt: $5,084,360,000,000
5. Netherlands – Total debt: $4,124,640,000,000
6. Luxembourg – Total debt: $3,900,665,000,000
7. Japan (Overall) – Total debt: $3,408,980,000,000
8. Italy- Total debt: $ 2,285,740,000,000
9. Ireland -Total debt: $2,236,430,000,000
10. Spain – Total debt: $2,036,560,000,000
11. Canada – Total debt: $1,791,870,000,000
12. Switzerland – Total debt: $1,699,690,000,000
13. Australia – Total debt: $1,563,330,000,000
14. China – Total debt: $1,437,800,000,000
15. China (Hong Kong Specifically) – Total debt: $1,416,010,000,000
16. Singapore – Total debt: $1,300,310,000,000
17. Belgium – Total debt: $1,194,235,000,000
18. Sweden – Total debt: $938,692,000,000
19. Austria – Total debt: $629,050,000,000
20. Norway – Total debt: $623,223,000,000


What is our debt ? Pakistan : 80,000,000,000 (Peanuts) 230 PERCENT less debt then USA

• Where will Pakistan stand after getting Asian Development Fund Loan (7 Billion Dollar)?
• Where will Pakistan stand after getting IMF economic relief Fund (5 Billion Dollar) ?

Answer: Pakistan still will not even register on the debt chart

Norway's debt 623 Billion ~ Pakistan Debt would be still 90-95 Billion range only

Norway recorded a government debt equivalent to 36.20 percent of the country's Gross Domestic Product in 2017. Government Debt to GDP in Norway averaged 38.01 percent from 1980 until 2017

Pakistan recorded a government debt equivalent to 67.20 percent of the country's Gross Domestic Product in 2017. Government Debt to GDP in Pakistan averaged 69.30 percent from 1994 until 2017

Top 10 debtor countries owe 86% of total IMF loans


as of 2015 imf loaned $84.57 billion.

Among continents, Africa (40 African countries) owes a combined $8.46 billion.

It is followed by Central America (11 countries), Asia (nine), Europe (seven) and the European Union (six).

Of the total amount owed to IMF as on May 31, the 10 biggest borrowing countries, including Portugal, Greece, Ukraine, Ireland and Pakistan, owed $72.4 billion, or nearly 86% of the total amount lent.


SO THE MOUNTAIN BECOMES HIGHER AND HIGHER..


The International Monetary Fund (IMF) has assessed Pakistan’s gross external financing needs at a record $27 billion for the next fiscal year, but warned that arranging the financing at favourable rates will now be a challenge due to risks to the country’s debt sustainability.


In its post-programme monitoring report, the IMF also forecast that due to additional borrowings, Pakistan’s external debt would jump to $103.4 billion by June 2019, up from this June’s projected level of $93.3 billion

BUT RECENTELY
IMF warns Pakistan of risks of working with China.The Pakistani government has also told Beijing it wants to reconsider some of the projects it signed up to under the US$62 billion China-Pakistan Economic Corridor.
THATS WHY PM IS GOING TO VISIT CHINA, SOON

Pakistan’s foreign currency reserves dropped to US$8.4 billion in late September, barely enough for current debt payments.


The value of Chinese loans given to Pakistan over the last 13 months is close to the US$6.2 billion the IMF lent it during the last bailout, according to a Bloomberg report in August..


Concerns over Chinese financing of projects grew after Sri Lanka, where many billions of dollars of agreements with China were made under former president Mahinda Rajapaksa, ended up seeing his successor Maithripala Sirisena having to hand an entire port to China on a 99-year lease. China also has a 70% equity stake in the port. For many countries involved in China’s Belt and Road Initiative, Sri Lanka is now a cautionary tale: too much debt, too fast, with a worrisome lack in transparency.

Pakistan is among eight countries—as farflung as Djibouti and Montenegro—with worrying levels of debt with China.

Pakistan will have to payback $100 billion to China by 2024 of total investment of $18.5 billion, which China has invested on account of bank loans in 19 early harvest projects, under CPEC.

Make no mistake: Pakistan is drowning in debt. More important, this debt binge has done little to improve the quality of life which has remained either the same or even declined. Half of our tax revenues are going towards paying off our cumulative debt, and as we take on more debt, the payments will only increase, leaving little for development and welfare. This is a travesty of epic proportions. It is unsustainable, and it is disastrous.

As we take on more debt, our corresponding ability to pay it off is gradually declining. Scour through the historic episodes. One lesson that peaks out is that when catastrophes strike, they come quickly and unannounced. Just take some time out and study the disaster unfolding in Venezuela, a vivid reflection of what unsustainable debt and expenditures can do. Time, then, to take some corrective actions, and quickly..

A true economic crisis in Pakistan could send shockwaves through the regional security environment. Pakistan’s global importance remains under-discussed given itsfragility . But with the world’s sixth largest population , sixth largest military and sixth largest nuclear arsenal , Pakistan’s ability to shape global trends—even if solely through the introduction of relative chaos and unpredictability—should give onlookers pause...

Inflation is going to rise due to continuing devaluation of the local currency, and subsidy cuts and taxes will increase the cost of living unbearably, under conditions where the masses are already living in dire poverty. 49.4 percent of Pakistanis live in poverty while 25% live below poverty line of $1 per day.

 

[BHarwana]

Lol.

 

[Baghial]

IGNORANCE IS A BLISS FOR PAKISTAN===

I WAS SO MUCH HOPING THAT THIS GUY IRAN , WILL LEAD US ...

HELAAS HE LEADED US BY MISLEADING...

3RD IG PUNJAB CHANGE IN 50 DAYS?

AROUND 50 FED MINISTERS/ MUSHEER,S FOR 26 KM OF FEDERAL GOVT==
WHAT AN AUSTERITY IMRAN KHAN?


THE RECIPE OF DISASTER IS COOKING,,,,,,

THE VULTURES ARE GETTING READY---------- INTERNAL AND EVEN BIGGER EXTERNAL ..

IDEAL SITUTION FOR A WAR....... AND 3RD PARTY


A dirham of riba( LOAN WITH INTREST) which a man receives knowingly is worse than committing adultery thirty-six times”

 

[Kabira]

Sir federal govt is not putting a penny in thar coal it sino sindh and engro sindh

Engro is going slow because it doesnt has money

Imported coal Should have been the way ..it would have cost 4-5 cents vs now 12 cents of LNG (7when.oil.was 40)

Regarding PTI..i havent seen any policy yet..still waiting ...
Yes they should waste time and they arent but they will not allow PMLN LYING EITHER THAT ITS PTI that is responsible for the mess because they arenot

Pmln wasted the golden era of low oil prices..there isnt much wiggle space now...pppp kept the deficit minimum when oil was 100-140

What now.
Switch oil plants to coal/gas not easy we dont have refineries
Encourage coal/hydro
Privitze distribution
Invest in distribution
Park the circular debt in powet holding and ensure fiscal disciplines from here on wards
Privitize all LNG plants use that money to invest in distribution

The interets rate it self on 1600 billion rupees will be at least 200 billion rupees a year

Sir federal have given sovereign guarantee for thar coal, what else do you want? Rest is loan, Sindh gov isn't putting its own penny in it. LNG was cheaper and environment friendly. Speculation on oil price will end soon and it should crash back to $50.

In PPP era population was much less and so were imports. Now remittances haven't kept up with imports and exports are not growing. PTI need to go after actual thief and defaulters in power sector.

 

[Hakikat ve Hikmet]

Every government never went trough the programme. It's like going to doctor when terribly sick and taking medication for few days - as soon as slight improvement takes place you stop the medication. Not completing the full course means the underlying cause remains which means it comes back to bite. It is cyclical.

With 70% of the economy unregulated, as per both the professional accountants (the best guys to know the ground realities for they are the ones who "cook" the book) and academic economists (Pak's undocumented economy is so glaringly evident that even the usually cluless academicians can find it), the governments might have little incentive to go for it!!! Now, the unregulated economy is by definition not subjected to any taxation/regulation/controls etc.; hence, it's growth potential is also unhindered as per Macroeconomics 101!!!! Is it a strategic decision of Pak to keep it that way??? If YES, IK government might try to leverage it to fix the remaining 30% under its control to a tip-top condition, although it might cause some "suffering" to some folks!!!!! if NO, IK government can go all out to document the economic activities as far as possible, and tax it to gain even more political mileage!!! I think it's somewhere in the middle, so a good trade-off may be like 60-40 with 60% under government control (as in Turkey)!!!! And, with a 60% documented economy and tough fiscal discipline, I think IK, like RTE, can still fulfill his major campaign promises to a reasonable extent...

 

[bafxet]

Inalillahe wa ina ilahi rajioon. This man will be pti's downfall. Reminds me of that book 'the economic hitman.' Pehlay engro ka kabara nikala tha ab Pakistan ka nikalna chahta hai. ghalat advise kar raha hai yeh Khan ko!

Agreed. Not a good choice for FM.

 

[Proudpakistaniguy]

Every government never went trough the programme. It's like going to doctor when terribly sick and taking medication for few days - as soon as slight improvement takes place you stop the medication. Not completing the full course means the underlying cause remains which means it comes back to bite. It is cyclical.

 

[BATMAN]

Another Donkey of Donkey Kingdom.

If he comes to me, i'll organize him as many billions he need on less markup than IMF.

All what is required from him is guarantees of repayment along with markup. come one... even gullu butt would choose for low markup than IMF.