Pakistan’s current account deficit contracts 29.5% to $9.6b

[BHarwana]

I think he was axed due to internal discord of PTI

I never liked Asad Umer because the way he was pro IMF and was taking us in that direction that is where I hated him but about his economic policies I loved them he did great and I will respect him for them. He could have avoided IMF he was a capable person but he gave up and decided to relax his nerves a bit. He worked hard for us but the mess our past left us in needed much more.

 

[Zibago]

I think he was axed due to internal discord of PTI

Ramesh Kumar said that he resigned when accusations were flying in meeting

 

[Orca]

And for this #PakPositive performance AU was fired!

But then it wasn't IK decision anyway....

AU has done service to Pak.... he was creative enough to save Pak from default... stood up to IMF and talked straight to them.... IMF called him arrogant for this.

IMF took AU's head... FACT!

IMF never called him Arrogant stop spreading fake news, better do cross check
IMF says never called Asad Umar arrogant
https://profit.pakistantoday.com.pk/2019/01/06/imf-says-never-called-asad-umar-arrogant/

this fake story first aired on a cheap Public TV by a unknown Analyst

Thank you

 

[CrazyZ]

Import/Export situation was unsustainable and had to be change. AU mentioned bankruptcy openly, which hurts confidence from lenders and investors. Big blunder.

Modern finance is all about confidence...so much leverage in the system that it can collapse easily. No minister or central banker in the west will say his nation is bankrupt...even if it is.

 

[AZADPAKISTAN2009]

"The central bank said import of goods shrank 5% to $39.3 billion in Jul-Mar FY19 compared to $41.4 billion in the same period of last year."

5% is not good enough this need to be 50% or 80%
reduction

Trouble is brewing

• We need the import figure to drop to 5 Billion from 40 Billion

This has to be done at Emergency Levels
Only allow in fuel and gas


It has been 9 months since new government came to power, and we had fresh blood , fresh minds to reduce this number down from 40 Billion Dollar.

My expectation was it would be droped to 25 Billion Dollar or 29 Billion Dollar for Imports

If this figure remains at 39 Billion this is a massive figure

• Our rate of reducing of this burden is 1 billion in 9 month
• We will reduce it only by 5 Billion by 45 month mark (Approximately 4 years)

New Debt Due to Trade unbalance :

Lets Assume , government took steps to reduce the imports to 30 billion

• Year two , Imports 30 billion, Exports 21 Billion -ve 9 Billion difference (New Deficit)
• Year three , Imports 30 billion, Exports 21 Billion -ve 9 Billion difference (New Deficit)
• Year four , Imports 30 billion, Exports 21 Billion -ve 9 Billion difference (New Deficit)

So easy to see in 45 months , we reduced stuff by 5 billion

But due to our excessive imports we will continue to grow deficit
[assumption trade unbalance remains at least at 9 billion difference Year to Year]

 

[tkmd]

It seems like strict but transparent and long term policies by Asad Umer were not very much welcomed by mafias within the country and by external forces. The institutions those provided loans on high interest rates didn't like a finance minister who was going to end their leverage over Pakistan. Thus, a campaigned was started against Asad Umer by Patwaris and lifafa journalists, which pressurized IK to sack him - although he was a poster of PTI. Personally, I think Asad Umer should replace Usman Buzdar as CM Punjab as unlike Buzdar, he is a doer and will be able to implement government policies in better ways.

So IK is now a patwari. Wonder why he didn't bend to pressure of biggest so called patwari MNSL. MN .Amazing.

 

[ps3linux]

I have lot of respect for Asad Umer for being a corporate leader, but as a failed finance minister I could not garner any respect for the guy, although all the woes of our economy are not due to PTIs govt but due to their lack of understanding and laid back approach they are definitely a party to it.

No one in his right mind at his position would come out and say we are bankrupt. period.

He was the only exception in PTI, he knew long before election results that he is going to be heading the F.minister he did nothing he did not even bother to meet reps of Karachi Chamber, till Ch Sarwar forwarded the complaint to I.K.

Moreover, he has dented our forex so bad even optimist like me are feeling bouts of pessimism, he along SBP and FBR allowed exporters to keep their forex proceeds for 6 months abroad, they invest the same in property.Anticipating further devaluation they extend the period if I post some of the research report on textile it would be another bout of pessimism how this change in regulation benefited the large textile groups and screwed Pakistan. P/E of Nishat was 10.8 in 2018 which dropped to 7, and P/E of Gul Ahmed dropped from 9.2 to 4.7 in 2019.