Pakistan’s external debt, liabilities shoot to record at $96.7b

[Norwegian]

go and read some economics, more you speak more you expose yourself. interest rates cant curb inflation basically it is otherwise.

Here you go donkey:
In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to save as returns from savings are higher. With less disposable income being spent as a result of the increase in the interest rate, the economy slows and inflation decreases.
https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp

He doesn't have 56 inch chest though.

He knows more about economy than these chawal patwaris here.

It will take at least 5 years to stabilize the economy.

PPP, PMLN spent 3 decades to destabilize economy and now you expect PTI to fix it in mere 5 years? What are you smoking?

 

[I FLY HIGH]

LOL. Investments in power sector resulted in default:
Power sector default surges to close in on Rs1 trillion

Same for other sectors of economy.


Dude its not about win or lose. Its about running the economy efficiently. Taking debt is not a problem if after a few years no more debt is required like India and Bangladesh. When a country becomes dependent on foreign aid every 5 years, that's where things go wrong.

use your brain , circular debt is different while the assets value stands of the installed capacity is the different term. e.g neelam jehlum build by debt but it carries the asset value what so ever. try to learn .

 

[Aryan0395]

Lets see, India BoT is -17 B $, where as Pakistan BoT is -383 B PKR monthly.



Let me present you with an analogy, there are two boats, one is small and has 50 holes in it and the other is big and has 30 holes in it. Surely, if you are unbiased, you would say both have problems, and surely you would say the one with 50 holes is much harder to fix than one with 30 holes. My main point is both are fix-able, but the narrative the OP and some of the people here want to present is that one boat is fixable and the other is not, which is clearly wrong.

That analogy will be more accurate the day India goes around asking for a bailout...:/
Not saying that Pak "boat" is not fixable, neither am i saying that Indian "boat" is the healthiest one in the sea, just that problems are high for the former and comparison with India isn't reasonable...we are still "managing" with our own finances. If our boat has 30 holes as u say, we have 30 pumps to throw the water out as well.

 

[Norwegian]

use your brain , circular debt is different while the assets value stands of the installed capacity is the different term. e.g neelam jehlum build by debt but it carries the asset value what so ever. try to learn .

Assets are there like dams, roads and bridges. But if you have no mechanism to get a return on investment, then they are worth nothing but a liability.

 

[Mage]

There is a vibrant financial sector in India that provides a good credit network (not great...but good enough given India per capita income). The current admin and also last cpl ones really expanded some reforms in this as well (to say SMEs, village industries and NBFCs...and the bank account formalisation/access program etc) that provide much incentive to get listed and traded (i.e on the books) under larger aegis. Grameen micro-credit is good, but BD needs to do lot lot more at all scales and routes.

It is why I have been harping on that BD should fix fix fix its finance/banking sector....it really is the critical engine like nothing else to take to another level of output (and presence/contact/demand/pressure for foreign liquidity/hedging as well). Same applies to Pakistan too. When you have more people participating and trading....the govt+ large corporates also has to compete more to provide for them (rather than just themselves i.e big wigs).

How is Vietnam only at 5% though?

 

[I FLY HIGH]

Here you go donkey:
In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to save as returns from savings are higher. With less disposable income being spent as a result of the increase in the interest rate, the economy slows and inflation decreases.
https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp


He knows more about economy than these chawal patwaris here.


PPP, PMLN spent 3 decades to destabilize economy and now you expect PTI to fix it in mere 5 years? What are you smoking?

read you previous post , curb inflation ? you need an immediate checkup by doctor .

 

[Norwegian]

How is Vietnam only at 5% though?

Vietnamese financial wizardry.

read you previous post , curb inflation ? you need an immediate checkup by doctor .

Yes rising interest rates curb (restraint) inflation.

 

[Sam.]

basically a chawal. i dont know if you understand the meaning of chawal?

Here you go donkey:
In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to save as returns from savings are higher. With less disposable income being spent as a result of the increase in the interest rate, the economy slows and inflation decreases.
https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp


He knows more about economy than these chawal patwaris here.


PPP, PMLN spent 3 decades to destabilize economy and now you expect PTI to fix it in mere 5 years? What are you smoking?

Chawal = Chtya/Loser correct ?

 

[Norwegian]

Chawal = Chtya/Loser correct ?

Yes he is talking about himself @I FLY HIGH after taking drugs

 

[I FLY HIGH]

Assets are there like dams, roads and bridges. But if you have no mechanism to get a return on investment, then they are worth nothing but a liability.

yes , some sane words from you at last , govt can privatise each and every asset to retire the original debt just like lng power plants are for top sale in privatisation list. or you can raise money by bonds in local or international market. it is the same . secondly the power plants contribute to generate revenue in terms of industrialization, job creation, tax collection, and cpec /gwader will generate forex /revenue . basically it is your choice to decide between the two generate revenue by sale or bonds or collect revenue. basically all are positive indicators.

 

[Nilgiri]

How is Vietnam only at 5% though?

World bank sometimes benchmarks early in the year (and Vietnam was facing a stock market crash at that point iirc). They will correct it next year most likely (its why you see huge dips in all the countries at various years)

Here is more recent figure:

https://vietnamnews.vn/economy/4655...n-reaches-792-of-gdp.html#MlIbEPFQeJ34MO0A.97

Việt Nam’s stock market capitalisation increased 13 per cent against the end of last year, reaching nearly VNĐ3.97 quadrillion (US$169.5 billion) by the end of August.

This value was equivalent to 79.2 per cent of the country’s gross domestic product (GDP), according to the Ministry of Finance.

 

[I FLY HIGH]

Chawal = Chtya/Loser correct ?

no , chawal is like a word which cant be explained but can be seen only . look at Imran khan our prime minister , he is a big chawal.

 

[Death Professor]

That analogy will be more accurate the day India goes around asking for a bailout...:/
Not saying that Pak "boat" is not fixable, neither am i saying that Indian "boat" is the healthiest one in the sea, just that problems are high for the former and comparison with India isn't reasonable...we are still "managing" with our own finances. If our boat has 30 holes as u say, we have 30 pumps to throw the water out as well.

Did I say both have 30 holes? those extra 20 are for IMF and similar issues. And do tell me how you haven't been going to world bank. Look IMF is for current balance of payments and restoring the faith of investors, once that is done we would be going to world bank and such. And thus we will be in the system and if the gov, doesn't fk up like previous gov, wouldn't need to go to IMF again. That's the summary of everything Pakistan related, no need to worry.

 

[Mage]

World bank sometimes benchmarks early in the year (and Vietnam was facing a stock market crash at that point iirc). They will correct it next year most likely (its why you see huge dips in all the countries at various years)

Here is more recent figure:

https://vietnamnews.vn/economy/4655...n-reaches-792-of-gdp.html#MlIbEPFQeJ34MO0A.97

Việt Nam’s stock market capitalisation increased 13 per cent against the end of last year, reaching nearly VNĐ3.97 quadrillion (US$169.5 billion) by the end of August.

This value was equivalent to 79.2 per cent of the country’s gross domestic product (GDP), according to the Ministry of Finance.

Now makes sense.....but what sort of crash could reduce it to as low as 5%?

 

[BRAVO_]

about india if their economy is big, it is because of their gigantic population size, since they are more than 1.35 billion people so their economy is 2.8 Trillions $, the depending population is also enormous, Pakistan should first of all document its economy, should control Black Economy, must get rid of Hawala and Hundi businesses and for that purpose they should give incentive to over seas Pakistanis to send back money through legal channels and for that purpose the overseas branches should give good remittances rates, why a person will send money through Habib Bank if private (hawala) exchanges are given him better rates??? and yes govt should think about the scheme for overseas pakistanies to send a car back home against a deposit of foreign currency equal to the price of the car value for some specific time.