Pakistani exports reach to $ 16 billion: Dar

[VCheng]

it doesnt matter if you have debts. debts are retired and new are taken, a standard practice.
problem is that if there is risk of being defaulted or if debt goes too much high(generally speaking more than 60-80% of GDP) then it will be difficult to get loans.

You are correct in saying that taking on debt and repaying it is standard practice.

What you intentionally ignore is the fact the a country has to be able to produce enough goods and services that other countries are willing to buy at competitive prices in the global markets to be able to repay those debts. Keep that in mind and one can see that Pakistan is, and will, continue to have much greater problems than many other comparable countries in repaying its debts, even when the percentages are lower.

For example, please consider the following claim:

Complete year export target is 27Billion dollars
and 50Billion dollars within the next 3-4years

What is it that Pakistan can produce in the next 3 or 4 years that will nearly double its exports, realistically speaking?

 

[maxpayne]

india has foreign reserves of 300 billion dollars but foreign debt of more than that..ok lets forget about it, USA has foreign debt of much much more than its strategic reserves. honestly you acting as an idiot in economics.(based upon my knowledge of econmics from my father).
it doesnt matter if you have debts. debts are retired and new are taken, a standard practice.
problem is that if there is risk of being defaulted or if debt goes too much high(generally speaking more than 60-80% of GDP) then it will be difficult to get loans.
If u want to debate on economy then at least get the basics right

Debt is actually compared with the country GDP and India loan/gdp is 23%

 

[ziaulislam]

Debt is actually compared with the country GDP and India loan/gdp is 23%

no sir its 67%.i think u r referring towards ext debt.
Government Debt To GDP - Countries - List

You are correct in saying that taking on debt and repaying it is standard practice.

What you intentionally ignore is the fact the a country has to be able to produce enough goods and services that other countries are willing to buy at competitive prices in the global markets to be able to repay those debts. Keep that in mind and one can see that Pakistan is, and will, continue to have much greater problems than many other comparable countries in repaying its debts, even when the percentages are lower.

For example, please consider the following claim:



What is it that Pakistan can produce in the next 3 or 4 years that will nearly double its exports, realistically speaking?

The phenomena is called "rolling over debt", books of economics have huge chapters on it. this is the standard practice what USA does, new debts to retire old debts. the key is too ensure lower gdp to deb ratio and market stability. currenly because of poor practices on obligation by previous govt our rating has gone very bad to B-, govt needs to keep its obligation and improve foreign reserves rapidly to ensure good rating. This what pakistan is trying to do, a very good move, already rating companies have shown some indication to improve pakistan rating.
we had a very good rating in musharraf era.

regarding exports yes deed 50 billion will be difficult, but textiles is good avenue for this , being the fourth largest cotton producer we can easily hit even 100 billion dollar mark if we take just 10% of international market. this what textiles association is claiming. lets wait and see. they did doubled during 2000s era in musharraf time. lets see whether they can do it again.

there are dozens of other avenues. e.g one of the biggest export commonality of india, is oil products and chemicals.Pakistan can tape into golf state experience to do so too, fertilizer, cement and food products is another avenue.
regarding exports we cant say anything whether govt can/cant achieve its target, it will depend how hard they will work.
pakistan poor state has been due to poor polices, poor standard of obligations due to bureaucratic blunders, other wise with good raw products (relatively speaking, more gas,cotton,manpower,market excess) we have much greater potential

 

[VCheng]

............
The phenomena is called "rolling over debt", books of economics have huge chapters on it. this is the standard practice what USA does, new debts to retire old debts. the key is too ensure lower gdp to deb ratio and market stability. currenly because of poor practices on obligation by previous govt our rating has gone very bad to B-, govt needs to keep its obligation and improve foreign reserves rapidly to ensure good rating. This what pakistan is trying to do, a very good move, already rating companies have shown some indication to improve pakistan rating.
we had a very good rating in musharraf era.

regarding exports yes deed 50 billion will be difficult, but textiles is good avenue for this , being the fourth largest cotton producer we can easily hit even 100 billion dollar mark if we take just 10% of international market. this what textiles association is claiming. lets wait and see. they did doubled during 2000s era in musharraf time. lets see whether they can do it again.

there are dozens of other avenues. e.g one of the biggest export commonality of india, is oil products and chemicals.Pakistan can tape into golf state experience to do so too, fertilizer, cement and food products is another avenue.
regarding exports we cant say anything whether govt can/cant achieve its target, it will depend how hard they will work.
pakistan poor state has been due to poor polices, poor standard of obligations due to bureaucratic blunders, other wise with good raw products (relatively speaking, more gas,cotton,manpower,market excess) we have much greater potential

Please note that demand for whatever Pakistan exports is not limitless or without competition in the global markets. Claims of 50 or 100 billion dollars of exports are mere hot air, as are wildly exaggerated claims of capturing 10% of the global market for textiles. Do you really think other countries with modern plants and ample power supplies will not undercut Pakistani supplier's prices who are dealing with immense disadvantages compared to them? The same holds true for all that you mention: fertilizer, cement, food and petrochemicals, plus anything else Pakistan can export.

Bhaija, aglay bhi maidan mein hein. Woh kia bhaag jaein gey?

The poor policies and blunders will continue, and exporting raw products will remain a volatile and low-value added game for Pakistan for the foreseeable future.

 

[ziaulislam]

Please note that demand for whatever Pakistan exports is not limitless or without competition in the global markets. Claims of 50 or 100 billion dollars of exports are mere hot air, as are wildly exaggerated claims of capturing 10% of the global market for textiles. Do you really think other countries with modern plants and ample power supplies will not undercut Pakistani supplier's prices who are dealing with immense disadvantages compared to them? The same holds true for all that you mention: fertilizer, cement, food and petrochemicals, plus anything else Pakistan can export.

Bhaija, aglay bhi maidan mein hein. Woh kia bhaag jaein gey?

The poor policies and blunders will continue, and exporting raw products will remain a volatile and low-value added game for Pakistan for the foreseeable future.

i said it earlier for textiles, we have the raw material and labour, the key components that other countries lack. textiles raw material and cheap nut wear is which i am referring, even this market is huge. look at bangladesh for example (they lack raw material any ample natural resources for energy other than gas which prduction is still less than half of Pakistan)
the only thing needing to be corrected is power, fortunately pakistan has potential in hydro power that can provide cheaper electricity. (100,0000 mw to be exact, highest in all the region with raw feasibility all conculded)
the example can be seen in early 2000s when the export did increase more than double from 8 billion dollars in 2001 to 18 billion in 2007 but mainly due to power have been slow after that, at a time Pakistan had limited market access.

ok will end with disagreeing about some things.
i am saying pakistan situation is bad but correctable in 3-4 years due to availability of raw material, manpower, market access and natural resources

you are saying that Pakistan is already defaulted and is being doomed is its inevitable future.

you views are clear contra indication of IMF,world bank and asian bank, according to which Pakistan growth will be slow but with god policy can be sustainable after 2016

 

[maxpayne]

no sir its 67%.i think u r referring towards ext debt.
Government Debt To GDP - Countries - L

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[ziaulislam]

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i checked the source you gave it quotes 46% for domestic debt and 23% for foreign=69%.
surprisingly worse than pakistan over all status but better in ext debt. Pakistan ext debt is near 29% with total of 63%.
though ministry claim that in feb 2014 its 59.5%.
well he may be right as figures of IMF are for 2012-13

Overall debt stands at 59.1pc of GDP; Senate told

real issue in our economy is blunders and lack of confidence, any uncertainly can through off any economy as we saw during 1st half of congress and during reelection in india

 

[Al Bhatti]

 

[farhan_9909]

What is it that Pakistan can produce in the next 3 or 4 years that will nearly double its exports, realistically speaking?

TDAP introducing reforms to achieve $50bn export target

 

[VCheng]

TDAP introducing reforms to achieve $50bn export target

Deeds, not words, are important. Deeds. Not words.