Pakistan's Economy - News and Updates

[Adam WANG SHANGHAI MEGA]

how much money wasted by changing RMB yuan to USD and than USD to Rupee and than Rupee to USD and than to RMB yuan?
There is less political role but economic law in this logic otherwise ,it would be stupid not to do direct currency changing unless we have no choice !
If i can buy a ticket with 10yuans or 10rupees i do not see the reason why i need spend 0.5USD change fees to do it!!!

 

[ejaz007]

Tehran to Lodge Complaint Against Pakistan Over Pipeline Deal
© AP Photo/ Vahid Salemi
ASIA & PACIFIC
03:55 06.02.2018(updated 03:56 06.02.2018)Get short URL
141
The Iranian government vowed to take legal action against the Pakistani government on Sunday over Islamabad’s failure to keep up their end of a bargain to build an oil pipeline bridging the two nations, Pakistan Today reports.

Iranian Petroleum Minister Bijan Namdar Zangeneh told reporters on Sunday that Iran has laid down pipeline up to the Iran-Pakistan border, but Pakistan has neglected to hold up its end of a bargain to construct the pipeline on the other side. As such, Tehran will lodge a complaint about the delayed process.

© AP PHOTO/ RONALD ZAK
Tehran Suspects Saudi Intelligence of Attempts to Stage Terror Attacks in Iran


Talks surrounding the deal to build the pipeline have been ongoing since 1995. Islamabad has been pressured by the United States and Saudi Arabia against completing the deal. But Washington may also be changing its tune.

Analysts say Beijing may pick up the slack in helping to build the pipeline inside Pakistan. China has already dedicated billions to the China Pakistan Economic Corridor as part of Beijing's One Belt, One Road initiative.

In December, the US backed off its opposition to the project. Jerry Bisson, mission director at the US Agency for International Development, said he supported Islamabad getting financing from any country, including Russia or China, in order to build the Iran-Pakistan pipeline.

"We can look at it. Any donor investment in infrastructure either from Russia, China, the World Bank or the Asian Development Bank and any investment for the benefit of the Pakistani people and economy, we support it," Bisson told the Express Tribune.

© AP PHOTO/
UK Intelligence Agency Actively Plotted Social Disruption in Iran - Security Researcher

"We don't have any particular views about where the money comes from; we support the government of Pakistan in improving lives of the people," the Express Tribune quoted Bisson saying.

The Economic Times reported that New Delhi was considering an underwater pipeline to ship liquefied natural gas from Iran to India to avoid running a line through southern Pakistan, which is marred by conflict due to a militant insurgency in Balochistan. While India has reportedly never officially pulled out of the $7.6 billion deal, it has stopped participating in the talks.

https://sputniknews.com/asia/201802061061387228-tehran-lodge-complaint-pakistan-pipeline/

 

[ghazi52]

Pakistan rice export touches $1.06bn

KARACHI: Rice export from Pakistan has seen significant growth and crossed $ 1.0 billion by the end of January since July 2017 showing an increase of 29 per cent in value and 15 per cent in quantity.

In a statement here on Friday, Rice Exporters Association of Pakistan (REAP) Senior Vice Chairman Rafique Suleman said that Pakistan exported total 2.28 million metric tonnes of rice worth $ 1.06 billion in last seven months, whereas in the same period of last fiscal year the figure was 1.971 million metric tonnes amounting to $ 820 million.

‘We have come out of the crisis. REAP members were making their untiring efforts and doing aggressive marketing to increase the rice exports and to earn valuable foreign exchange for our beloved country Pakistan,’ he re-affirmed.

He was hopeful that this year the set target to export more than 4.0 million metric tonnes of Pakistani rice and would earn $ 2 billion.

Due to the excessive pesticide residue found in Indian rice, India is expected to lose the European market hence REAP had also focused on European countries. This is an excellent opportunity for Pakistani rice exporters to grab EU market, he added.

He also urged the government departments concerned to extend maximum support and facilitation to rice exporters for an increase in their exports to European countries.

REAP leader informed that right now, demand for rice had increased around the globe.

He was satisfied that this year the country had a very good crop in terms of quality and quantity, adding that the prices of Pakistani rice were comparatively cheaper than that of its competitors including Thailand and Vietnam.

 

[Adam WANG SHANGHAI MEGA]

I would like very much to have Pak bro rice to support this effort!

how can i buy it?

 

[Nilgiri]

I would like every much to have Pak bro rice to support this effort!

how can i buy it?

Easiest way is to check on alibaba....or can go to a Pakistani restaurant in China and ask them who their basmati etc supplier is...even if its wholesale... ppl will direct you to which grocers carry their product.

 

[Introvert]

Pakistan, Canada trade talks today

ISLAMABAD - Pakistan and Canada will hold trade dialogue on Monday that is aimed at promoting bilateral trade , between the two countries to its true potential.

According to a message received here, Commerce Minister Pervaiz Malik, who is on the visit to Canada at the invitation of his Canadian counterpart, is scheduled to meet with Minister of International Trade Francois-Philippe Champagne to discuss all traderelated issues.

The current volume of bilateral trade has increased by 133% during the last three years from $ 732 million in 2013 to $ 1.8 billion during the last year. Both sides recognize that there exists a huge potential for enhancing the existing bilateral trade .

Besides meetings with Canadian Minister of Agriculture, Lawrence MacAulay and Minister for Immigration Ahmed Hussen, at Ottawa, the commerce minister is also expected to meet with the Canadian investors and businessmen at Montreal and Ontario Chamber of Commerce at Toronto.

He will also interact with the Canadian media.

https://nation.com.pk/12-Feb-2018/pakistan-canada-trade-talks-today

 

[Clutch]

 

[fatman17]

https://twitter.com/x/status/972556353075077121

 

[ziaulislam]

https://twitter.com/x/status/972556353075077121

when it comes to debt only worrisome indicators are
circular debt ~10 billion dollars
PIA libaliltes and steel mill and DESCO(power sector liabilities)=8 billion dollars

over all Fiscal deficit was pushed to 5.2 which i think is too high should be kept around 4..

for those who curse musharraf

keep an eye on trend between in 1990s and 2012-2016

we need urgent reforms in power sector and we need to get rid of PIA, DESCOs and all govt institutes

debt has to be kept below 60% per parlimentry law passed in mushi era

debt accumlated via CPEC and infrastutre is needed
its the useless debt as mentioned above that is the problem

 

[Chak Bamu]

when it comes to debt only worrisome indicators are
circular debt ~10 billion dollars
PIA libaliltes and steel mill and DESCO(power sector liabilities)=8 billion dollars

over all Fiscal deficit was pushed to 5.2 which i think is too high should be kept around 4..

for those who curse musharraf

keep an eye on trend between in 1990s and 2012-2016

we need urgent reforms in power sector and we need to get rid of PIA, DESCOs and all govt institutes

debt has to be kept below 60% per parlimentry law passed in mushi era

debt accumlated via CPEC and infrastutre is needed
its the useless debt as mentioned above that is the problem

Musharraf regime was beneficiary of massive foreign exchange inflows that had much to do with WoT. The same war has wreaked havoc in Pakistan ever since. Its not quite so simple a thing as looking at a graph and clapping for the dictator. Kargil alone did more damage to Pakistan's fortunes than all else combined. I am not yet even addressing really bad policy choices made by his regime.

 

[ziaulislam]

Musharraf regime was beneficiary of massive foreign exchange inflows that had much to do with WoT. The same war has wreaked havoc in Pakistan ever since. Its not quite so simple a thing as looking at a graph and clapping for the dictator. Kargil alone did more damage to Pakistan's fortunes than all else combined. I am not yet even addressing really bad policy choices made by his regime.

I am not fan of him but we need to keep eyes in facts
Lets assume that musharraf got all the money usa claimed (i.e 12 billion) it still is not much different than IMF programs and money that was received via expensive bonds

Steel mills,power sector reforms and pia failure has nothing to foreign inflows
Currwnt account crisis is due to poor policies of defending rupee artificially to 98 and than taxing exports and refusing refunds

 

[Chak Bamu]

I am not fan of him but we need to keep eyes in facts
Lets assume that musharraf got all the money usa claimed (i.e 12 billion) it still is not much different than IMF programs and money that was received via expensive bonds

Steel mills,power sector reforms and pia failure has nothing to foreign inflows
Currwnt account crisis is due to poor policies of defending rupee artificially to 98 and than taxing exports and refusing refunds

I remember the after-math of 9/11 very clearly. Many many worried ex-pats bought property in Pakistan. It started a property boom that continued until 2005. It was not the 12 billion that you are alluding to. Do notice how the debt-gdp percentage climbed until 2001 and then began a big sustained drop. Its no accident and had very little to do with Musharraf regime's policies. If anything Musharraf's economic policies were crafted by bankers and had predictable results. I would very much like to know how much investment was made to ensure that energy requirements of an expanding consumer economy were met? Gas company executives kept telling the government of the impending severe short-fall but Musharraf regime did nothing, and people kept converting their cars to CNG. While bankers were doling out loans so that people could buy ACs, no thought was given to electricity generation. Both these actions impacted our export industry very very hard. I should know, I was running 2 textile factories, one of which was oriented towards exports. That factory died a slow painful death as it got badly starved of electricity and it could never get a gas connection because there was precious little left over after mushroom growth of CNG gas stations.

Now sir, please tell me more about how good were the Musharraf years for Pakistan and what wonders they did for GDP-Debt percentage of Pakistan? Also throw some light on the stellar performance of Pakistan's export sector while you are at it. Indeed without export-led growth there can be no sustained GDP-debt percentage drop, unless we strike big oil somehow.

 

[Nilgiri]

I remember the after-math of 9/11 very clearly. Many many worried ex-pats bought property in Pakistan. It started a property boom that continued until 2005. It was not the 12 billion that you are alluding to. Do notice how the debt-gdp percentage climbed until 2001 and then began a big sustained drop. Its no accident and had very little to do with Musharraf regime's policies. If anything Musharraf's economic policies were crafted by bankers and had predictable results. I would very much like to know how much investment was made to ensure that energy requirements of an expanding consumer economy were met? Gas company executives kept telling the government of the impending severe short-fall but Musharraf regime did nothing, and people kept converting their cars to CNG. While bankers were doling out loans so that people could buy ACs, no thought was given to electricity generation. Both these actions impacted our export industry very very hard. I should know, I was running 2 textile factories, one of which was oriented towards exports. That factory died a slow painful death as it got badly starved of electricity and it could never get a gas connection because there was precious little left over after mushroom growth of CNG gas stations.

Now sir, please tell me more about how good were the Musharraf years for Pakistan and what wonders they did for GDP-Debt percentage of Pakistan? Also throw some light on the stellar performance of Pakistan's export sector while you are at it. Indeed without export-led growth there can be no sustained GDP-debt percentage drop, unless we strike big oil somehow.

Yes your post is backed up by the debt Pakistan took on in that period that did not translate into hard capital investment (say gross capital formation etc) as % of GDP....compared to the short and mid term GDP growth percentages.

https://data.worldbank.org/indicator/NE.GDI.TOTL.ZS?locations=PK

i.e effectively a prioritisation of consumption over much needed long term investment (the power gen you talk of for example) with future growth in mind.

This meant the debt was largely wasted or was used for immediate end consumption only largely (when it was somehow passed on through say subsidy to whoever thats politically connected or vote groups etc)....which is no good because you only get ROI on small % of the debt, not even including the compound interest....and you ramp up the long term debt burden and can even affect your credit score etc, and definitely hurt your balance of payments (because why produce and export, just import and consume etc from the "free" short term debt money). Can read this to get an idea of some recent issues/trends on this:

https://blogs.worldbank.org/opendata/are-south-asian-countries-sinking-debt-trap

By this I further mean that the GCF that would have risen %-wise of GDP if these monies were converted into electric power lines, power plants, gas lines, canals, schools, construction etc...rather than what seems to be waste (asset inflation) from "hot" volatile money kind of debt (India saw some scale of this from 2004 - 2010 as well but it was laundered through the stock market rather than politicians at least (initially)...and it was really FPI rather than debt per se in first place).

How to fix that (restricted routing of debt/foreign investment to the Pak private sectors/entrepreneurs) needs the deep massive reform, because the kickback potential of debt or investment to GCF is not good for political types (basically money has to be deployed and accounted for and then you got to actually work on the results long term etc.... rather than sitting in some ministers hidden hedge fund portfolio, but posing as available funds for department). Only transparency and/or well disciplined audit procedures can prevent/deal with this.

Given severe lack of those two things, I think relying on govt is lost cause for Pakistan and region, there needs to be bigger and larger drive for more private controlled banking (and govt/central bank focused only on standards) and having those be the main credit route for private sector industry. But each country, maybe even state, city etc needs to come up with specific legislation and implementation......but this is somewhat antithetical to the political class....because it displaces/disrupts their cushy corrupt system.

@django @Xlvee01 @farhan_9909 @Zibago

 

[salman77]

Fishery Exports can cross $1 Billion

ISLAMABAD: With the China-Pakistan Economic Corridor (CPEC) and related infrastructure development in Sindh and Balochistan, Pakistan’s exports in the fisheries sector have the potential to cross the $1-billion mark a year, against the current annual export of around $400 million. Pakistan’s exports of fishery products stand at about 0.25% of world exports. Other than a huge domestic market, Pakistan has an export market for fish and fish products and around 30% of the total produce is exported to 30 countries of the world, stated a latest report titled, ‘The state of economy: China-Pakistan Economic Corridor Review and Analysis’, issued by The Shahid Javed Burki Institute of Public Policy at NtSol. According to the report, the fisheries sector in Balochistan is a major source of employment for people residing along the coastal belt.

https://tribune.com.pk/story/1682380/2-annual-receipt-fishery-exports-can-cross-1-billion/

 

[Shahzaz ud din]

PAKISTAN,S GDP FIGURES FOR THE YEAR 2017-2018

Per ca-pita income increased to $1,640.50

Pakistan’s economy expanded to $313 billion,

The economy provisionally grew at a pace of 5.8% in the outgoing fiscal year 2017-2018