Pakistan to repay foreign loans worth $8.638b till June as vulnerabilities multiply

[SQ8]

 

[SQ8]

 

[wali87]

Both

Because Bughaz Imran

External loans show in dollars not PKR

Time of declaring bankruptcy was after 2018 elections. This time has long gone View attachment 808594

Lol did you complain when country was handed over to IMF 21 times before Imran Khan?View attachment 808597

Ofcourse I complained. But two wrong don’t make a right. What you are doing is justifying one wrong with another. So what’s changed? This government is also doing what the previous ones did. Only worse. Hyperinflation, currency devaluation, IMF to name a few and then there’s Buzdaar. I mean it’s understood the previous government looted and plundered that’s we we elected pti. Zero performance and only explanation or excuse is to blame the previous governments for own incompetence. Khan ki baatein Theon croron ki magar dukaan nikli pakoron ki.

Please post the IMF loan charts and figures from 2013 to 2022 as well to be fair.

 

[Maula Jatt]

View attachment 808618

Uncle majboor reference had me

 

[wali87]

Pakistan needs to increase its dollar inflows ( remittances, exports etc) to come out of IMF.

The period where Pakistan inflows least grew were the periods responsible for IMF. You know which period it was so be honest with your country and understand what is wrong.

It will take time 10 years of pain to get out of foreign dependency.

This is the only government that is working to improve the macro stability so one day we can get out of this trap. Rest especially the last one was just about spending winning elections at the expense of viability of Pakistan.

Actually I thought the same, that this government was different, that’s why my entire social circle voted for them however they turned out to be worse than the previous ones. If you live in Pakistan you’d know what I mean.

10 years? What world are you living in my friend? I feel your way too detached from the current political realities in Pakistan to know that this current regime will be demolished in the upcoming elections. Sadly the lohaar brother will probably secure the most seats. The losers will be the people of Pakistan once again as they voted pti thinking there was a serious Chance to change things.

 

[Norwegian]

This government is also doing what the previous ones did.

Nope it's not. This govt is actually taking painful steps required by IMF to get rid of continuous boom and bust cycles plaguing Pakistani economy for decades

Only worse. Hyperinflation, currency devaluation, IMF to name a few

Inflation, devaluation is not your enemy but required painful treatment when your economy lands back to IMF emergency room again and again

 

[Norwegian]

Zero performance

So if PTI govt had declared Pakistan bankrupt at once when in govt back in 2018, you would call it best performance? Now that govt has managed to avoid bankruptcy and default for 4 long years, you dare calling it zero performance?
Here is news from 2018. Pakistani economy was nearly bankrupt when PTI govt came into power

Why Is Pakistan Going Bankrupt?

To put it simply, in Pakistan - debt is soaring, the Current Account Deficit is widening, reserves are dangerously low, and the currency has been devalued four times in just eight months.

www.thequint.com

Pakistan Independence Day: On its Independence Day, Pakistan stares at bankruptcy

State Bank of Pakistan has only about $10 billion in forex, enough to last for only 2 months.

m.economictimes.com

If you live in Pakistan you’d know what I mean.

Don't live in Pakistan if it's so bad.

Sadly the lohaar brother will probably secure the most seats.

It doesn't matter. PTI govt has passed laws under IMF pressure that won't allow future govts to manipulate Pakistani currency as state bank is made independent now. Furthermore future govts won't be allowed to borrow money from the state bank to finance govt deficit (money printing). So any future govt will be stuck just like PTI govt today at the same or worse performance. They won't be having any money to do corruption because of record repayments to international financial institutions and local commercial banks

 

[SaadH]

Oreally! History will tell sooner or later.
The loan has now crossed 50.5 trillion, the graph is just showing 37 trillion(not updated).
View attachment 808535

Inflation is soaring even higher but the graph is showing just around 9%.
View attachment 808536

All these graphs are from pro-Govt Channel SAMAA.

Simple question for you, where is the loan amount PTI gov't took out is being spent?

Loans are meant to be paid back.

Is the issue that we are paying them back or that we don't have the money to pay them back?

You can always borrow from another source to pay the current loan back - kicking the can further down the road.

Brokenomics 101.

That's what Immi is doing now, taking out more loans to pay the old ones taken out by Zardari and Nawaz as well as the insidious capacity payments to the IPP's.

It doesn't matter. PTI govt has passed laws under IMF pressure that won't allow future govts to manipulate Pakistani currency as state bank is made independent now. Furthermore future govts won't be allowed to borrow money from the state bank to finance govt deficit (money printing). So any future govt will be stuck just like PTI govt today at the same or worse performance. They won't be having any money to do corruption because of record repayments to international financial institutions and local commercial banks

Don't underestimate the ingenuity of the Sharif and Zardari/Bhutto clans

 

[GHALIB]

Imran can repair the damage if given another chance . Hopefully he will gather better team next time. Stable pakistan is good for peace in subcontinent .

 

[wali87]

So if PTI govt had declared Pakistan bankrupt at once when in govt back in 2018, you would call it best performance? Now that govt has managed to avoid bankruptcy and default for 4 long years, you dare calling it zero performance?
Here is news from 2018. Pakistani economy was nearly bankrupt when PTI govt came into power

Why Is Pakistan Going Bankrupt?

To put it simply, in Pakistan - debt is soaring, the Current Account Deficit is widening, reserves are dangerously low, and the currency has been devalued four times in just eight months.

www.thequint.com

Pakistan Independence Day: On its Independence Day, Pakistan stares at bankruptcy

State Bank of Pakistan has only about $10 billion in forex, enough to last for only 2 months.

m.economictimes.com

View attachment 808673View attachment 808674

Don't live in Pakistan if it's so bad.

It doesn't matter. PTI govt has passed laws under IMF pressure that won't allow future govts to manipulate Pakistani currency as state bank is made independent now. Furthermore future govts won't be allowed to borrow money from the state bank to finance govt deficit (money printing). So any future govt will be stuck just like PTI govt today at the same or worse performance. They won't be having any money to do corruption because of record repayments to international financial institutions and local commercial banks

Your posting the same charts for the third time . I asked you for IMF liabilities from 2014-2022.

Why would I not live in Pakistan? What I meant was it’s overseas Pakistanis like you who do not understand the ground realities in Pakistan because
The inflation in Pakistan does not affect you.
The depreciating exchange rate doesn’t affect you
Nor does the recurring gas and electricity load shedding affect you.

So for you to sit abroad and justify the zero performance of this current government and support the handing over of our economy to IMF is totally understandable. Because none of it affects you at the end of the day. But had you studied economics at university, you would know what it means and how destructive it is. No country ever stood up on its feet with the help of IMF. But it appears your so blinded by a party’s ideology that you’d go to any extent to justify their actions while ignoring the reality, so there’s no point explaining things to you.

 

[Norwegian]

No country ever stood up on its feet with the help of IMF.

You are seriously misinformed. India went nearly bankrupt in 1991. Was rescued by IMF. Since then it fixed its economic structure and never looked back to IMF again

How WB,IMF got India to adopt reforms in 1991

Its open to the public now. Declassified documents from the World Bank show how it and the International Monetary Fund chivvied and cajoled India into economic liberalisation in the summer of 1991.

indianexpress.com

Meanwhile Pakistan went to IMF more than 21 times, didn't fix its economic structure as prescribed by IMF, and thus remained a perpetual begging bowl

 

[Big_bud]

Oreally! History will tell sooner or later.
The loan has now crossed 50.5 trillion, the graph is just showing 37 trillion(not updated).
View attachment 808535

Inflation is soaring even higher but the graph is showing just around 9%.
View attachment 808536

All these graphs are from pro-Govt Channel SAMAA.

PML - N media cell has been cleverly pushing such graphs everywhere. In dollar form however, the debt graph trajectory has remained the same as you can see above. PTI free floated the currency against dollar that was being artificially held at a particular rate. That's why in PKR the debt seems to have risen disproportionately. The fact is that PTI has:

Taken 46 Billion USD additional loan
27 Billion USD used to repay principal amount on PREVIOUS loans
6.5 Billion USD used to pay interest on PREVIOUS loans
7.35 Billion USD used to boost SCB dollar reserve to meet liability payments

Only 5 Billion USD has been actually used by PTI government as per late last year's figures. Despite covid and everything, only 5 Billion USD has been added. PML-N fudged figures, parked liabilities and loans here and there in various sub accounts. Depleted national reserves and invested in projects that DO NOT earn ANYTHING. Need subsidies to run! They incur massive losses every year. Their IPP - Independent power plant projects were the worst ever contracts possible! Extremely expensive per unit price, you use it or not. We have to pay capacity payments. Their gas contracts were the worst ever possible contracts for Pakistan. Underlying issues were never address, hap hazard deals were made for fire fighting that are now causing a fierce circular debt problem for Pakistan. We are getting loans, to repay loans hence net debt is increasing due to compounding interest.

MOODY's ratings for Pakistan however remain stable B3. in 2018 they were negative B3.


National security policy introduced by Imran Khan acknowledges financial security as a part of national security! We didn't even have a foreign minister during Nawaz rule! Even Bata chapal was being made in China and imported here! Industries were destroyed completely! No FDI, during Imran Khan however we have seen Kia, Hyundai, MG, DFSK, Haval, Changan, Peugeot, Proton, BAIC have already launched. VW and Skoda will be launched soon! Which industry was booming in Nawaz era? All I remember is 12+ hrs of load shedding during those years?

 

[Pindi Boy]

The amount of hate imran Khan is getting from our enemies (india) is huge . There is something that annoys them

 

[wali87]

You are seriously misinformed. India went nearly bankrupt in 1991. Was rescued by IMF. Since then it fixed its economic structure and never looked back to IMF again

How WB,IMF got India to adopt reforms in 1991

Its open to the public now. Declassified documents from the World Bank show how it and the International Monetary Fund chivvied and cajoled India into economic liberalisation in the summer of 1991.

indianexpress.com

Meanwhile Pakistan went to IMF more than 21 times, didn't fix its economic structure as prescribed by IMF, and thus remained a perpetual begging bowl

IMF did not fix India’s economic structure, it was India’s own internal correctional measures that brought about a boom in India from 1997 onwards. In 1991 India went to IMF in desperation in light of their crashing economy.

Like you said Pakistan went to IMF 21 times and is still doing the same. So what does that tell you about our country? That If it didn’t work 21 times it wouldn’t work now either. No matter how this regime presents it. Every country has its own economic demographics. It’s apparent that IMF in itself is like a drug that you perpetually have to resort to once your on it. Each time giving a different explanation for it.

 

[Norwegian]

IMF did not fix India’s economic structure, it was India’s own internal correctional measures that brought about a boom in India from 1997 onwards. In 1991 India went to IMF in desperation in light of their crashing economy.

Like you said Pakistan went to IMF 21 times and is still doing the same. So what does that tell you about our country? That If it didn’t work 21 times it wouldn’t work now either. No matter how this regime presents it. Every country has its own economic demographics. It’s apparent that IMF in itself is like a drug that you perpetually have to resort to once your on it. Each time giving a different explanation for it.

IMF, World Bank is not your enemy. Read here how they helped India get out of its economic crisis after 1991 near bankruptcy. When there is a will there is a way.

How WB,IMF got India to adopt reforms in 1991

Its open to the public now. Declassified documents from the World Bank show how it and the International Monetary Fund chivvied and cajoled India into economic liberalisation in the summer of 1991.

indianexpress.com