Pakistan's economic woes go from bad to worse ahead of polls: Bloomberg

[ziaulislam]

Pakistan has to cut it's import bills, there is no way around it.

No need to import foreign cars, textiles/rmg's, food products, luxury goods etc. Similarly need to cut on borrowing any further loans. Exports should be given priority.

I don't know who is running the economy of this country, I've seen acute drop in Pakistani rm.garments here in the US in last 5 years, in all big stores.

Pakistan has highest cop oeprate taxation and highest export taxation in the region..thanks to Ishaq Dar
balancing inflows is easy... if you get cheaper developmental loans instead of expensive eurobonds..but that require greater transparency and less political motivated spending

 

[Dalit]

Pakistan has to cut it's import bills, there is no way around it.

No need to import foreign cars, textiles/rmg's, food products, luxury goods etc. Similarly need to cut on borrowing any further loans. Exports should be given priority.

I don't know who is running the economy of this country, I've seen acute drop in Pakistani rm.garments here in the US in last 5 years, in all big stores.

I'll be very interested in knowing what commodities are on this list of import. What are they spending all these reserves on?

 

[ziaulislam]

Pakistan has a bright future, we have a major economic boost heading our way where wd will grow QUICK it is being held back by our own faults

my take is... if IF education, transparency and health sector are addressed otherwise we will remian a slow growing economy
small burst of growth due to infrastructure in long run is inconsequential

its knowledge base economy that drives growth not infrastructure base economy(by no way i am dis crediting the infrastructure spending)

 

[Dalit]

my take is... if IF education, transparency and health sector are addressed otherwise we will remian a slow growing economy
small burst of growth due to infrastructure in long run is inconsequential

its knowledge base economy that drives growth not infrastructure base economy(by no way i am dis crediting the infrastructure spending)

Knowledge based economy is indeed the keyword here. A nation can only go so far with natural resources and cheap labor etc. A long term knowledge based economy can only exist if a nation is ready to invest a lot of resources in quality education. Specifically universities and higher education. We all know where our elite go to study. It is not at Pakistani universities I can assure you.

When the sons and daughters of Pakistani elite go abroad to study at American and European universities what else can we expect.

 

[hussain0216]

my take is... if IF education, transparency and health sector are addressed otherwise we will remian a slow growing economy
small burst of growth due to infrastructure in long run is inconsequential

its knowledge base economy that drives growth not infrastructure base economy(by no way i am dis crediting the infrastructure spending)

You are right but where is the planning for this?

Pakistan dosent need to be in this situation, we have the strength to push past it and really develop the state and economy

but we have short sighted politicians embroiled in rivalries, corruption, regional stupidity and ego


The fault lies with the people because we let them get away with it rather then holding their feet to the fire

Many good things and changs are happening in Pakistan but we cant prepare for the race because we keep shooting ourselves in the foot

 

[tarrar]

So much ganja league & ganja family claims. All this is because of massive scale corruption committed by both gadari party & ganja league.

 

[Nalini]

I'll be very interested in knowing what commodities are on this list of import. What are they spending all these reserves on?

Pakistan’s total debt and liabilities (TDL) watered up to perspiring $242.8 billion at the end of December 2017 – booking an increase of 47.3% or $78.0 billion since June 2013 when the PMLN’s government took up the baton.

The increase in local currency is more vexing – 64.1% or Rs. 10.5 trillion – to Rs. 26.8 trillion from Rs. 16.3 trillion in June 2013. As a result, every Pakistani owes Rs. 129,000/- and each Pakistani household is indebted with Rs. 830,000.

Total debt and liabilities of the economy-torn country now makes 74.7% of gross domestic product (GDP) – up from 68.6% in June 2013, the figures released by State Bank of Pakistan (SBP) on Friday showed.

The sharp rise in EDL also beats the prediction of the incumbent Punjab Finance Minister Dr. Ayesha Ghaus Pasha’s husband and Former Finance Minister Dr. Hafeez Pasha that Pakistan’s external debt and liabilities will sail through $90 billion by June 2019.

In a latest development, the government also confessed that the country has deteriorated its external debt paying capacity and also growth of external debt in proportion to the foreign exchange reserves has considerably increased.

External debt servicing combined with always-mounting imports is one of the largest harm to the bleeding national economy. Since June 2013, Pakistan has spent $29.5 billion on account of external debt’s principal and debt servicing.

The FY2017 recorded the highest ever external debt servicing year – repaying $8.1 billion, $6.5 billion in principal loans reimbursement and $1.6 billion in interest payment. In 6M-FY2018, a total of $3.6 has already been incurred on the same account.

Government continues to camouflage its inefficiency and failure to discharge its managerial responsibilities by blaming Middle Eastern turmoil and capital investments in CPEC-linked projects for country’s flagging economic conditions but is inaudible on torpid exports, rising current account deficit, and dropping rupee value.

Pakistan’s economy drastically needs some mamoth financial clinicians to get out of the ‘intensive care unit’.

So what massive policy shift can save Pakistan. Only one.

Lick your wounds, Bite the bitter pill. Reconcile with your India hatred. Strike a deal for water & Let go of Kashmir. Open trade immediately, Bring tourism, Bring Cricket, Hand over Hafiz, Masood, Syed or strike a deal on it too. India will stop all its interference, be it Afghanistan, Balochistan, MQM, Iran, & save you from international sanctions & isolation. Lot of money you can save every day which you lose with LOC confrontation, terror, deployments, causality treatments, compensations.

All these below sectors have failed or failing - Better trade, better economy, less border tensions, less terror, peaceful conditions & environment for FDI, More visas, good reputation for overseas employment to boost remittances, etc

Railways
Telecommunication
Airlines
Weaving
Knitwear
Textile
Leather
Tourism
Steel Mills
Sugar Mills
Pharma
Poultry Farms
BlackBerry, Telenor, Baker Huges, Intel
HSBC, Citibank, Barclay's (Co.s closing shop)

I have been reminding people here from the time I am here, India is pushing you to the brink of collapse & with in 3-4 years, we will annex GB & Azad Kashmir I know my words will have no impact & will be mocked. My duty to remind what's coming

No change of your politicians or policies will save Pakistan, only India. If politicians & corruption was a problem, the Army would have easily taken over. During last elections & when Raheel Shareef was retiring there was rumors of a coup & Army take over. I was the first person to confidently tell it won't happen. Army will not take over. Search for it or if you want i can find it for you.

I again feel the same, the Military won't take over, because the economy is in dire straits & they know they can't do anything with the present internal & external conditions. They will not want to be painted as the villains, when the economy collapses, when riots will start to rise & civil unrest & break up become imminent & finally when India invades all these generals & officers will go missing from the country.

Let me expose one more sad state of Saudi slavery which you can't get out. You import oil worth billions from the Arabs & when you have no money to pay, they will stop supply, then you will have no choice but to get stripped your pants down. You will have to do what they tell you, to get the oil bills waived. Good Luck.

Thank you for your replies in advance. No problem

 

[my2cents]

View attachment 456289

Pakistan’s total debt and liabilities (TDL) watered up to perspiring $242.8 billion at the end of December 2017 – booking an increase of 47.3% or $78.0 billion since June 2013 when the PMLN’s government took up the baton.

The increase in local currency is more vexing – 64.1% or Rs. 10.5 trillion – to Rs. 26.8 trillion from Rs. 16.3 trillion in June 2013. As a result, every Pakistani owes Rs. 129,000/- and each Pakistani household is indebted with Rs. 830,000.

Total debt and liabilities of the economy-torn country now makes 74.7% of gross domestic product (GDP) – up from 68.6% in June 2013, the figures released by State Bank of Pakistan (SBP) on Friday showed.

The sharp rise in EDL also beats the prediction of the incumbent Punjab Finance Minister Dr. Ayesha Ghaus Pasha’s husband and Former Finance Minister Dr. Hafeez Pasha that Pakistan’s external debt and liabilities will sail through $90 billion by June 2019.

View attachment 456290

In a latest development, the government also confessed that the country has deteriorated its external debt paying capacity and also growth of external debt in proportion to the foreign exchange reserves has considerably increased.

External debt servicing combined with always-mounting imports is one of the largest harm to the bleeding national economy. Since June 2013, Pakistan has spent $29.5 billion on account of external debt’s principal and debt servicing.

The FY2017 recorded the highest ever external debt servicing year – repaying $8.1 billion, $6.5 billion in principal loans reimbursement and $1.6 billion in interest payment. In 6M-FY2018, a total of $3.6 has already been incurred on the same account.

View attachment 456291

Government continues to camouflage its inefficiency and failure to discharge its managerial responsibilities by blaming Middle Eastern turmoil and capital investments in CPEC-linked projects for country’s flagging economic conditions but is inaudible on torpid exports, rising current account deficit, and dropping rupee value.

Pakistan’s economy drastically needs some mamoth financial clinicians to get out of the ‘intensive care unit’.

So what massive policy shift can save Pakistan. Only one.

Lick your wounds, Bite the bitter pill. Reconcile with your India hatred. Strike a deal for water & Let go of Kashmir. Open trade immediately, Bring tourism, Bring Cricket, Hand over Hafiz, Masood, Syed or strike a deal on it too. India will stop all its interference, be it Afghanistan, Balochistan, MQM, Iran, & save you from international sanctions & isolation. Lot of money you can save every day which you lose with LOC confrontation, terror, deployments, causality treatments, compensations.

All these below sectors have failed or failing - Better trade, better economy, less border tensions, less terror, peaceful conditions & environment for FDI, More visas, good reputation for overseas employment to boost remittances, etc

Railways
Telecommunication
Airlines
Weaving
Knitwear
Textile
Leather
Tourism
Steel Mills
Sugar Mills
Pharma
Poultry Farms
BlackBerry, Telenor, Baker Huges, Intel
HSBC, Citibank, Barclay's (Co.s closing shop)

I have been reminding people here from the time I am here, India is pushing you to the brink of collapse & with in 3-4 years, we will annex GB & Azad Kashmir I know my words will have no impact & will be mocked. My duty to remind what's coming

No change of your politicians or policies will save Pakistan, only India. If politicians & corruption was a problem, the Army would have easily taken over. During last elections & when Raheel Shareef was retiring there was rumors of a coup & Army take over. I was the first person to confidently tell it won't happen. Army will not take over. Search for it or if you want i can find it for you.

I again feel the same, the Military won't take over, because the economy is in dire straits & they know they can't do anything with the present internal & external conditions. They will not want to be painted as the villains, when the economy collapses, when riots will start to rise & civil unrest & break up become imminent & finally when India invades all these generals & officers will go missing from the country.

Let me expose one more sad state of Saudi slavery which you can't get out. You import oil worth billions from the Arabs & when you have no money to pay, they will stop supply, then you will have no choice but to get stripped your pants down. You will have to do what they tell you, to get the oil bills waived. Good Luck.

Thank you for your replies in advance. No problem

I have seen enough of these dire predictions in my lifetime not only with Pakistan but with India. It just doesn't pan out like we envisage because things change constantly and nations adjust their strategies accordingly. What is the unifying Pakistan is their islamic heritage not their hate for India or Kashmir. Few skirmishes along the LOC does not change the dynamics of our nations. Only full scale war does. But that is unlikely when we both possess nukes. CPEC will be a game changer for Pakistan, give it few more year they will reap those benefits.

 

[Shajida Khan]

Import bill is a necessity as infrastructure projects for CPEC continue

There is no way around this

If it was a frivolous unnecessarily growing import bill you could complain but as it is a absolute necessity that we complete the infrastructure and projects then this is a something we will have to deal with


Our politicians however are indeed useless when it comes to management economic or otherwise

I thought you guys got funded by your friend in soft loans. Why then you need to tax your poor people? Or increase interest rates to force money into bonds etc?

 

[AyanRay]

What is the unifying Pakistan is their islamic heritage not their hate for India or Kashmir

Oh is it? Then how can you explain Bangladesh or Baluchistan or ttp?

 

[Shajida Khan]

What is the unifying Pakistan is their islamic heritage not their hate for India or Kashmir

That theory got debunked in '71.

 

[my2cents]

Oh is it? Then how can you explain Bangladesh or Baluchistan or ttp?

Bad leadership along with ethnic and linguistic division paved way for Bangladesh. Baluchistan is resource rich but was discriminated and remained underdeveloped. Now they are addressing these issues. TTP are using islam to usurp power and their means of intimidation using terror has alienated them with general public. They are being hunted down and their power is restricted to few pockets.

 

[Flash_Ninja]

I have been reminding people here from the time I am here, India is pushing you to the brink of collapse & with in 3-4 years, we will annex GB & Azad Kashmir I know my words will have no impact & will be mocked. My duty to remind what's coming

No change of your politicians or policies will save Pakistan, only India. If politicians & corruption was a problem, the Army would have easily taken over. During last elections & when Raheel Shareef was retiring there was rumors of a coup & Army take over. I was the first person to confidently tell it won't happen. Army will not take over. Search for it or if you want i can find it for you.

I again feel the same, the Military won't take over, because the economy is in dire straits & they know they can't do anything with the present internal & external conditions. They will not want to be painted as the villains, when the economy collapses, when riots will start to rise & civil unrest & break up become imminent & finally when India invades all these generals & officers will go missing from the country.

Let me expose one more sad state of Saudi slavery which you can't get out. You import oil worth billions from the Arabs & when you have no money to pay, they will stop supply, then you will have no choice but to get stripped your pants down. You will have to do what they tell you, to get the oil bills waived. Good Luck.

Thank you for your replies in advance. No problem

Dumbest post I've read in quite some time, thank you for giving me a good laugh.

Hope you can recover from your brain damage some day.

 

[xyxmt]

I thought you guys got funded by your friend in soft loans. Why then you need to tax your poor people? Or increase interest rates to force money into bonds etc?

spoke like our own Khan...no rhythm, no rhyme, no lyrics

 

[SoulSpokesman]

This spate of articles suggesting doomsday scenario suggests a concerted conspiracy to undermine the PMLN govt.

Yes, GoP finances are not in a healthy state, but they never have been. And oridnary Pakistani citizens are living better than they have ever lived. And with CPEC things can only get even better.

Regards