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Pakistan's Economy - News and Updates

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I don't like Klasra at all.. but I have listened to it and it was an excellent investigation conducted by him.. but that won't change my views about him.. lolll
I look into Klasra's shows precisely for his financial corruption investigative work and his focus on reporting the proceedings of Finance committees of Parliament. The rest of this work is mostly the usual prime time political manjan.
 
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Sunta Jaa, Sharmata Jaa! The Swiss Gate Scandal.

The legend of the looters & plunderers and their Swiss Stash...


@BHarwana @Arsalan @The Accountant @Zibago @war&peace @El Sidd Your Views... I know you don't like Klasra but bear with me on this one @PakSword


آخری شام نوم لیگ کی حکوت نے دو سو ارب روپے بانٹ دیے۔ چلیے، غداری نہ کہیے، کیا یہ ملک سے بے وفائی نہیں، جس کا بال بال قرضوں میں چکڑا ہوا ہے۔


 
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We have to be careful not to get distracted by these RUMORS of huge oil discoveries. they will waste our precious time in pushing for the needed reforms in civil service, tax collection, and lowering waste we need to transition to a stable and sustainable economy.
 
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Free money from e. Pakistan jute sale.

E.Pakistan was a part of the country so the objection goes moot. Jute was no gold, and was used more as a political propaganda than anything.
 
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Any Update on Panama Papers or that other scandal which went totally ignored?
 
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https://www.dawn.com/news/1430852/imf-by-month-end-very-likely-says-citi

KARACHI: With projected external financing requirements of $31 billion in FY19, Pakistan is “very likely to seek an International Monetary Fund (IMF) programme”, says Johanna Chua, Citigroup’s Head of Emerging Markets Asia Economics & Strategy Bank in a report released on Monday. The report says an approach is likely by end September.

“The sheer size of Pakistan’s external financing gap and an experienced list of technocrats advising the government on economic issues will likely lead to the same conclusion” she says, going on to warn that “not going to the IMF is a far more economically and politically painful/riskier option than otherwise.”

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Concerns over the lack of urgency on the part of the government could potentially drag the negotiations, the report continues. The report challenges Imran Khan’s claims on “attracting overseas diasporas money and bringing back looted wealth” labelling the approach “unrealistic and inadequate”.

Stressing the need to deal with loss-making Public Sector Enterprises and circular debt, the report highlights “the accumulation of new payment arrears of power distribution companies (circular debt), which was brought to near zero levels in FY 2016 has been climbing since, reaching 596bn — 1.7 per cent of the GDP,” requires immediate attention. Criticising, the talks of setting up a sovereign wealth fund, the report termed viability of such project “unclear”.

In the unlikely event of Pakistan not opting for an IMF program, the government will more likely “lean on import controls” and suffer higher funding costs.
 
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https://www.dawn.com/news/1430852/imf-by-month-end-very-likely-says-citi

KARACHI: With projected external financing requirements of $31 billion in FY19, Pakistan is “very likely to seek an International Monetary Fund (IMF) programme”, says Johanna Chua, Citigroup’s Head of Emerging Markets Asia Economics & Strategy Bank in a report released on Monday. The report says an approach is likely by end September.

“The sheer size of Pakistan’s external financing gap and an experienced list of technocrats advising the government on economic issues will likely lead to the same conclusion” she says, going on to warn that “not going to the IMF is a far more economically and politically painful/riskier option than otherwise.”

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Concerns over the lack of urgency on the part of the government could potentially drag the negotiations, the report continues. The report challenges Imran Khan’s claims on “attracting overseas diasporas money and bringing back looted wealth” labelling the approach “unrealistic and inadequate”.

Stressing the need to deal with loss-making Public Sector Enterprises and circular debt, the report highlights “the accumulation of new payment arrears of power distribution companies (circular debt), which was brought to near zero levels in FY 2016 has been climbing since, reaching 596bn — 1.7 per cent of the GDP,” requires immediate attention. Criticising, the talks of setting up a sovereign wealth fund, the report termed viability of such project “unclear”.

In the unlikely event of Pakistan not opting for an IMF program, the government will more likely “lean on import controls” and suffer higher funding costs.

a) the conditions will be quite tough (i.e cannot be used to repay or even service chinese loans) given pompeo earlier statement on the issue

b) import controls will kick the can down the road to some degree, but the window for extensive reform (production/export wise) will not be very wide for pakistan to grow itself out of this systemic problem that has festered this long. Pakistan economy (given its largely consumption based, as the investment % and tax base % is still very low) will suffer in the interim too.

c) Pakistan has had enough of approaching China? Or is that still being looked at?
 
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a) the conditions will be quite tough (i.e cannot be used to repay or even service chinese loans) given pompeo earlier statement on the issue

b) import controls will kick the can down the road to some degree, but the window for extensive reform (production/export wise) will not be very wide for pakistan to grow itself out of this systemic problem that has festered this long. Pakistan economy (given its largely consumption based, as the investment % and tax base % is still very low) will suffer in the interim too.

c) Pakistan has had enough of approaching China? Or is that still being looked at?

a) is a given. It is just a matter of determining just how tough. If the recent rise in gas prices is any indication, the rollback of energy subsidies, without effective measures to combat theft and non-payments, will be quite painful for the general public.

b) must be a part of the solution. Energy imports are non-avoidable, but the balance of payments requires some measures to control imports for private consumption. Of course, more measures incentivizes more smuggling too, so there is a limit to what such measures can achieve.

c) I think it is and will be looked at as supplemental support. The situation is dire enough that all measures need to be considered and likely will form parts of the overall solution.

Even with all of the above, the basic and fundamental problems that have led to the present situation remain unchanged and no durable solution of the chronic imbalance of payments can be found without addressing those on an emergent basis. However, all indications are that another proverbial re-arranging of the deck chairs on a famous ship is all that will happen, unfortunately.
 
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