Pakistan's Debt, liabilities mount to Rs 40.2 trillion, 104% of GDP now

[BATMAN]

You do realize that purana Pakistan is the reason for abysmal state of Pak economy? Naya Pakistan didn't wreck the economy.

When i used to live in Pakistan, it was second most fastest growing economy of Asia after China.
People were getting richer without doing any efforts, foreigners companies were coming with cash to invest in Pakistan and if remember correctly 2006 was declared as year of tourism.

Than suddenly one group of people started to demand restoration of democracy and here we are!

 

[maximuswarrior]

Either we reduce our liabilities or increase our GDP because this debt level is not sustainable.

We need to reduce the bleeding by amending our energy purchase agreements with all the IPPs. We have been screwed badly because of it resulting in 10 bill $ worth of liquidity wiped out of the debt market that could have been used in revenue generating industries instead of being stuck in receivables and loans.

Further CPEC projects need to be scuitinized again. We can't afford any further orange train type projects that are capex heavy and result in further revenue shortfall.

We also need to go invest heavily in going paperless and blockchaining our currency. When we have the paper trail (via block chaining) we can then easily increase the tax base and documentation of our economy.

Increasing GDP in such a short term is not easy. Most of it is our own doing. Some of it is political and external. How can you expect to increase your GDP when your export levels are pathetically low? We haven't invested in anything. From education to industrialization. It is simply not there. When you have not planted seeds in the soil it won't produce any yield.

CPEC is not an immediate concern. The loans are very soft and need to be paid back in years to come. It will pay off itself over the years.

The immediate focus should initially be to reduce liabilities. Take on the massive elephants in the room. No matter how painful and politically sensitive. The major expenditures need to be tackled. The tax base needs to be increased. State enterprises eating up massive resources need to be curtailed. The import and export imbalance needs to be addressed. Corruption needs to be tackled. We need to start documenting our economy. The undocumented economy needs to be transformed into a documented one. There is going to be a lot of propaganda against these measures as we can already see how the sold out media is crying. Let them cry all day long. Simply get on with the painful surgery.

When i used to live in Pakistan, it was second most fastest growing economy of Asia after China.
People were getting richer without doing any efforts, foreigners companies were coming with cash to invest in Pakistan and if remember correctly 2006 was declared as year of tourism.

Than suddenly one group of people started to demand restoration of democracy and here we are!

You are wrong. When you were living in Pakistan loans were being taken and debt got higher and higher.

 

[BATMAN]

You are wrong. When you were living in Pakistan loans were being taken and debt got higher and higher.

I remember otherwise... i use to get PKR45 for each $ in 2005.
Pakistan was out of circular debt but some MoFo type people took to streets to demand justice for Mukhtaran mai and than later for Iftikhar Chaudary and than for fake democracy.... rest is all history.

 

[doorstar]

GDP indeed dropped to 250b from 313b

https://www.ceicdata.com/en/indicator/pakistan/real-gdp-growth

2019: 283,332.7

2018: 315,160.1

 

[Rafeh]

https://www.ceicdata.com/en/indicator/pakistan/real-gdp-growth

current GDP of 283 billion is GDP so far based on activity recorded up to the month of july. Once it gets updated in December as new data arrives due to state of developmental projects as well private sector contribution, it will increase back to over 300 billions. it is based on current prediction without fully including the state of developmental projects (both private and public) that have not been reported yet. IN Pakistan annual data is released in December. that is most of development work progress is NOT included in these predictions.

 

[doorstar]

month of july

June

 

[Zulfiqar]

Increasing GDP in such a short term is not easy. Most of it is our own doing. Some of it is political and external. How can you expect to increase your GDP when your export levels are pathetically low? We haven't invested in anything. From education to industrialization. It is simply not there. When you have not planted seeds in the soil it won't produce any yield.

I know all these issues. This is why I suggested reduction of liabilities.

CPEC is not an immediate concern. The loans are very soft and need to be paid back in years to come. It will pay off itself over the years.

The immediate focus should initially be to reduce liabilities. Take on the massive elephants in the room. No matter how painful and politically sensitive. The major expenditures need to be tackled. The tax base needs to be increased. State enterprises eating up massive resources need to be curtailed. The import and export imbalance needs to be addressed. Corruption needs to be tackled. We need to start documenting our economy. The undocumented economy needs to be transformed into a documented one. There is going to be a lot of propaganda against these measures as we can already see how the sold out media is crying. Let them cry all day long. Simply get on with the painful surgery.

The loans are not the only issue. If the loans are used to finance deficit creating white elephants then they are of no use to us (In many cases the loans are not discounted as the loans have to be priced according to the project. One has to go through NEPRA tariffs to get the idea).

Further the Chinese do the transaction at arms length and in fact charge additional amount as credit insurance to insure their debt.

The main issue is not the debt but FX outflows resulting in Current account deficit as FX for local portion of debt and equity has to be arranged which results in heavy outflows. Right now we are not in position to do so unless we improve our exports or reduce imports. This is why we need to scrutinize further CPEC projects and only take part in those that give increment value rather than deficit.


Further I wholly agree with the steps you have mentioned. Documentation of the economy is key. We also need to blockchain our currency asap.

 

[Code_Geass]

https://www.ceicdata.com/en/indicator/pakistan/real-gdp-growth

2019: 283,332.7

2018: 315,160.1

would not it be fair to see GDP in PPP ?

 

[AZ1]

The onus is on the government to increase the tax base.

As long as the government doesn't push people to pay taxes this situation is not going to change any time soon.



You do realize that purana Pakistan is the reason for abysmal state of Pak economy? Naya Pakistan didn't wreck the economy.

You wasting time because he is a tax evader himself

 

[Code_Geass]

I don't know, I replied not because I know anything about economics but to counter a lie about Pakistan GDP being down to 250 billion from the previous year's 315 billion dollars

cant find 2019 GDP ppp anywhere

 

[maithil]

Current GDP of Pakistan, PKR 38.6 Trillion is equal to 242 Billion USD.

 

[Code_Geass]

it was 3,966
https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?locations=IN-PK
https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=PK
https://www.ceicdata.com/en/indicator/pakistan/real-gdp-growth

i wanted 2019 i have edited my post i also want complete GDP not just per capita.

Current GDP of Pakistan, PKR 38.6 Trillion is equal to 242 Billion USD.

View attachment 576322

where did yo get 38.6 trillion figure

 

[maithil]

i wanted 2019 i have edited my post i also want complete GDP not just per capita.


where did yo get 38.6 trillion figure

Dawn's today's report about Fiscal Deficit.

 

[Code_Geass]

i wanted 2019 i have edited my post i also want complete GDP not just per capita.


where did yo get 38.6 trillion figure

in 2009 India and pakistan GDP per capita PPP were almost same but now USD 2000 difference https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?locations=IN-PK

 

[Protest_again]

i wanted 2019 i have edited my post i also want complete GDP not just per capita.


where did yo get 38.6 trillion figure

SBP says 40.4 trillion as 104.3% of GDP. So they calculate GDP as 38.6 trillion. It can't get more authentic than your own SBP. At current exchange rate, in dollar terms GDP is not more than $250 billion.

in 2009 India and pakistan GDP per capita PPP were almost same but now USD 2000 difference https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?locations=IN-PK

This is more up to date.
https://www.imf.org/external/pubs/f...564,534&s=NGDPD,PPPGDP,NGDPDPC,PPPPC&grp=0&a=