Pakistan’s debt at $90 billion

[A.M.]

Your post is perfectly rational and makes a lot of sense.



This is irrelevent, how many of thos 200 million pay tax? Since when has population been a consideration for a nationa's ability to service its debt?

It isn't irrelevant because each country determines what their per person debt amount is. Pakistan has a huge shadow economy and inclusion of even 5% of such individuals into the fold will render this debt amount useless.

 

[damiendehorn]

Bangladesh

GDP $209bn
External debt $23.7bn
Foreign Reserve $27.4bn
GDP growth 7.2%

 

[Abingdonboy]

It isn't irrelevant because each country determines what their per person debt amount is. Pakistan has a huge shadow economy and inclusion of even 5% of such individuals into the fold will render this debt amount useless.

Well there's the rub, you actually have to do that, don't you? Simply stating arbitrary figures aren't going to produce tanigble results.

 

[Faiez]

List of countries by external debt - Wikipedia, the free encyclopedia
Rank Country External debt[2]
US dollars Date Per capita[3][4][5][6]
US dollars % of GDP[7][8][9]
1

United States 18,772,300,000,000 1 December 2015 58,255 103
2

United Kingdom 9,590,995,000,000 31 March 2014 160,158 406
3

France 5,750,152,000,000 31 March 2014 86,317 222
4

Germany 5,546,869,000,000 31 March 2014 68,720 145
5

Luxembourg[note 1] 3,472,282,000,000 31 March 2014 3,696,467 3,443
6

Japan 2,861,488,000,000 31 March 2014 24,000 60
7

Italy 2,651,413,000,000 31 March 2014 est. 43,621 124

WOW, never knew UK was in so much debt....

What are they like literally throwing away their money in the gutter ?!?!?!?

To better understand (slightly) how debt works, you guys should play sim city 4 and start a new city with debt. See how difficult it is to run it. And the best thing to do is to minimize it (start paying it back) and if you ever borrow, you invest the borrowed money in a way that it generates more wealth than the interest to be paid on it.

To find out whether the debt was worth it simply compare the annual interest paid to annual GDP growth in absolute numbers. Such as for example if in 2014 pakistan paid 5 billion dollars in interest and the economy grew less than 5 billion dollars, we're losing money. Even if the ratio becomes 1:1, we're doing a bad job since debt is obviously not the only source of investment (there's FDI, local investment, etc etc).

I don't know the latest figures and I don't know whether they account using accrual method or cash (since most loans that we take are structured a little oddly, so cash accounts would make no real sense).

So in short, GDP growth should be significantly more than debt servicing to make it reasonable.

 

[karakoram]

a very informative thread and some superb contributions from senior members PDF roxs man

 

[kadamba-warrior]

It isn't irrelevant because each country determines what their per person debt amount is. Pakistan has a huge shadow economy and inclusion of even 5% of such individuals into the fold will render this debt amount useless.

Well there's the rub, you actually have to do that, don't you? Simply stating arbitrary figures aren't going to produce tanigble results.

Not just that! By that standard, many developing countries have significantly huge shadow economies - especially India. But it doesn't mean much unless you are taking steps to bring all that shadow economy back into the official fold and find a way to account/tax it.

That's where I think Modi's Jan Dhan/Direct Benefit Transfer initiatives (combined with UPA's Aadhar, Indian Payment Gateway) could prove to be masterstrokes in the long run. It is still a long way away, but at least things are moving in the right direction.

 

[My-Analogous]

Not just that! By that standard, many developing countries have significantly huge shadow economies - especially India. But it doesn't mean much unless you are taking steps to bring all that shadow economy back into the official fold and find a way to account/tax it.

That's where I think Modi's Jan Dhan/Direct Benefit Transfer initiatives (combined with UPA's Aadhar, Indian Payment Gateway) could prove to be masterstrokes in the long run. It is still a long way away, but at least things are moving in the right direction.

The important thing is GDP to Debt ratio and Pakistan is in good position and its GDP to debt ratio decreased

Pakistan 64.30 now
on Dec/14 64.80 previously

So Pakistan is doing well

Country List Government Debt to GDP

 

[khail007]

Gift of popular leaders to the nation.
The only solution is to introduce death penalty law against corruption cancer.
Politician and their family members to be barred from doing business, while in power. Laws requird to introduce for auditing their assets every year; by some independent bodies.

 

[Sheikh Rauf]

Catch few politicians and their kids they will more than 100 billions ..
Their is a incidence when Prophet Mohammed (PBUH) visited dozakh and there were people who have their stomach bigger than palaces and they cud see snakes ..if anyone can find that hadith for me please..
That hadith perfect suites them..
We have to ask combine forgivness from Allah...
They are azab on us no doubt.

 

[Viper0011.]

Exactly

Pakistan
GDP : $270 billion
Debt : $66 Billion
Ratio : 24%

India: $2000 Billion
Debt : $439 Billion
Ratio : 21%

The interesting thing here is that India has had trillions of investments and given millions of highly paid jobs, both in the US and in India. So Pakistan, without the trillions of investments, if reaches 35% debt ratio vs. the GDP, isn't bad. As long as all the major projects get done by 2018. A few years of growth by 6% would bring it back down to 20% as millions more will be employed, many cities would be created along the CPEC and billions of additional pass through trade will go through the CPEC (one example), resulting in billions of dollars worth of tax and trading activity (essentially more than the current economy of Pakistan). So you double the economy but not the population.

Pakistan can start to shape up into a very modern country in the next ten years