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

[I FLY HIGH]

You are dumber than I thought. Foreign currency only moves physically between international banks and other legal financial institutions such as Western Union. As for the rest, the illegals use cheap and fake systems like Hawala and Hundi, where real physical transactions do not take place. Government has already started crack down against these thugs and crooks. And when they go out of business people would have no choice but to use legal channels.

that is like a fan boy not an economist , who told you that currencies physically dont transfer ? Air and sea routes are both used to transfer the foreign currency and Dubai is the nearest hub. you need to look around the hawala business and you will see, e.g Anyone in pakistan gives money to transfer USD to swiss baks , hawala cant arrange unlimited USD inside Switzerland, they can do it with limited amounts but all the amonuts cant be done without physical transfer , atleast a nearest hub is used to initiate the electronic transfer and in our case the nearest hub is Dubai. many boats are confiscated by naval vessels and many are arrested on airports doing physical transfers. gold is another mode , you need to learn this complex mechanism which even KSA is unable to break where the law is very strict while the hawala is most active there. Any finance minister if ignores this black economy and only operates in white economy he is bound to fail like Asad Umer.

 

[proud_indian]

So is your market cap (the most macro-relevant backing capital essentially) 1/5th of India's?

Is your credit rating the same as India (which is investment grade)?

You have to factor those in before comparing like apples and oranges.

Pakistan is getting into deep trouble here given its total market cap itself is only around 100 billion USD and its credit rating is junk grade.

This is very sad and very bad