PM urges world to think of 'debt-write offs' to help nations like Pakistan cope with virus

[Amazon]

And he thinks only developing countries are impacted ? In fact developed countries have been affected more !!

 

[Laozi]

"It's not just Pakistan. I would imagine the same in India, in the subcontinent, in African countries," he said, referring to the virus.

And why would IK refer to similarity in viruses found in India and Pakistan. Strange !!!

he is worried that his government's efforts to lift the ailing economy out of near-collapse would begin an unstoppable slide backward.

Under IK's rule Pakistan should stop expecting foreign investments. He always paints a very grim picture of the very own country which he himself governs.

 

[sohail.ishaque]

We can make somekind of deal. May b something like waiving off debt and in return we can let the wb and imf to confiscate the properties and black money of pakistani politicians and mafias that is outside pakistan, in any form.

 

[Amazon]

We can make somekind of deal. May b something like waiving off debt and in return we can let the wb and imf to confiscate the properties and black money of pakistani politicians and mafias that is outside pakistan, in any form.

Why WB or lets say IMF going to do it for you. If this is possible in real world then every third world country where corruption in rampant is going to request the same thing. To be honest Imran Khan is sounding naive, this is not at all possible.

 

[ejaz007]

Musharaf had the opportunity to get partial debt written off. He was more interested in getting his government legitimized.

PakBrother mine,

After giving blood sacrifice of 80k Paks... and a loss to PakEconomy of $220+Bln... APS!.... we are subjected to this unpayable burden...

We also need to take responsibility of the past two regimes... and their utter EconomicTerrorism as well...

DebtRelief is the key to kick start the GlobalEconomy as we are looking at a GlobalRecession...and actual growth can only come from AsianCountries... including India as well.

When this pandemic is over somewhere mid-next year... the world shall/might be looking rather different thatn today...

What we are looking at is the fact that the ruling Global Financial Architecture is getting stuck deeper...

G20/G30 need to come together and try to create New Financial Architecture that also takes into account the well being of the Rest and not just the CombinedWest!

Just have a look at the map.... Eurasia!

China, Pakistan, India, Russian, CARs, Turkiye, Iran, GCC and ASEAN... the combined output and populations... and yet we have NO Say in the current Financial Architecture...

Elimination of poverty is absolutely doable in the Eurasian landmass and Africa as well...

Anyhow, KhooniVirus is one catalyst. MarketMeltdown another... combined... they accentuate eachother... adding feul to the Momentum of History which is bringing I-turn-the-world-upside-down kinda changes...

Mangus

The next government would be blaming this government for all the loans taken. The circle continues. No one tries to end the circle.

 

[HammerHead081]

I think that if Pakistan manages to have even 50% of its debt written-off, it will be a fantastic outcome for this country!! 100% will write off would be unprecedented ! It will turbo charge the economy.

You must be really stupid to think this is even slightly possible lol

 

[Raj-Hindustani]

https://www.dawn.com/news/1541620/p...to-help-nations-like-pakistan-cope-with-virus

PM urges world to think of 'debt-write offs' to help nations like Pakistan cope with virus

"The world community has to think of some sort of a debt write-off for countries like us, which are very vulnerable, at least that will help us in coping with (the coronavirus)."

He also called for lifting sanctions against Iran, the epicentre of the coronavirus outbreak in the Middle East.

The premier sat down with AP at his office in Islamabad. He'd spent much of his day meeting experts about the effect of the coronavirus outbreak in Pakistan, which has confirmed 193 cases so far.

He said that if a serious outbreak of the pandemic happens in Pakistan, he is worried that his government's efforts to lift the ailing economy out of near-collapse would begin an unstoppable slide backward.

Exports would fall off, unemployment would soar and an onerous national debt would become an impossible burden. Pakistan secured a $6 billion bailout from the International Monetary Fund last year.

"It's not just Pakistan. I would imagine the same in India, in the subcontinent, in African countries," he said, referring to the virus.

"If it spreads, we will all have problems with our health facilities. We just don't have that capability. We just don't have the resources."

Most people who get the new coronavirus and the COVID-19 illness it causes experience only mild or moderate symptoms, such as fever and cough, and recover within weeks. But the virus is highly contagious and can be spread by people with no visible symptoms. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.

Why again India name in Imran's statement?

Note- India is not requesting to the world for any dept write-offs.

Without India name, not a single tweet or statement is coming from Imran now a days...

 

[Laozi]

Why again India name in Imran's statement?

Note- India is not requesting to the world for any dept write-offs.

Without India name, not a single tweet or statement is coming from Imran now a days...

No harm in lying to fellow Pakistanis that India too is carrying a begging bowl. IK has a curious way of comforting its countrymen

 

[N.Siddiqui]

No harm in lying to fellow Pakistanis that India too is carrying a begging bowl. IK has a curious way of comforting its countrymen

It will be good for India, Pakistan, BD and every country under the debt...and a comity of debt ridden country can make it happen, Pakistan appealing for a debt write off won't work. I think It is a good planned thinking...debts are written in crisis situation...not in normal circumstances.

India also has a foreign debt of about 550 billion USD, Pakistan has around 110 billion USD or so.

https://economictimes.indiatimes.co...-4-billion-till-june/articleshow/71379343.cms



And BTW India spent about 25% of its national income in debt servicing...Pakistan is worst here.

https://thelogicalindian.com/opinion/indias-debt-trap-25-of-the-budget-is-spent-on-paying-of-debts

 

[Chhatrapati]

It will be good for India, Pakistan, BD and every country under the debt...and a comity of debt ridden country can make it happen, Pakistan appealing for a debt write off won't work. I think It is a good planned thinking...debts are written in crisis situation...not in normal circumstances.

India also has a foreign debt of about 550 billion USD, Pakistan has around 110 billion USD or so.

https://economictimes.indiatimes.co...-4-billion-till-june/articleshow/71379343.cms



And BTW India spent about 25% of its national income in debt servicing...Pakistan is worst here.

https://thelogicalindian.com/opinion/indias-debt-trap-25-of-the-budget-is-spent-on-paying-of-debts

India do not need a debt write off. Debt write off are needed for countries that have no means to pay back the debt. In short, it's equivalent to a country begging to financier to write off the debt, because they don't have the income to pay off the debt. Which is wrong in the case of India we have close to $500 billion in reserves of which $30 billion are gold reserves. Bangladesh has close to $40 billion reserves.
It's like having Rs. 1million bank balance and Rs 1.5 million debt. Would you ask the Bank to write off the debt will the bank allow such a debt write off?

Pakistans case, I didn't check your debt or reserve stats but you are in no position to negotiate a debt write off, especially when Int lenders will have to lend more due to glut created in global economy due to Corona pandemic.

 

[sohail.ishaque]

Why WB or lets say IMF going to do it for you. If this is possible in real world then every third world country where corruption in rampant is going to request the same thing. To be honest Imran Khan is sounding naive, this is not at all possible.

Well, lets have the one that matter respond. A response from you on their behalf is not accepted.

 

[A.A. Khan]

Imran Khan since coming to power is smoking something really weird which is making him give stupid statements. And he is surrounded by inept jokers and moles for different foreign countries as advisers and governors.

His hitman governor REza Baqir did not cut interest rate and refused to give relief even in this difficult circumstances and he thinks world leaders will listen to him and waive off debt.

 

[Nilgiri]

India do not need a debt write off. Debt write off are needed for countries that have no means to pay back the debt. In short, it's equivalent to a country begging to financier to write off the debt, because they don't have the income to pay off the debt. Which is wrong in the case of India we have close to $500 billion in reserves of which $30 billion are gold reserves. Bangladesh has close to $40 billion reserves.
It's like having Rs. 1million bank balance and Rs 1.5 million debt. Would you ask the Bank to write off the debt will the bank allow such a debt write off?

Pakistans case, I didn't check your debt or reserve stats but you are in no position to negotiate a debt write off, especially when Int lenders will have to lend more due to glut created in global economy due to Corona pandemic.

Actually lot of Indian debt is actually tied up in those foreign reserves (NRI bonds/capital account) to begin with ... the yields are quite low because of trust in Indian economy+admin (and credit rating). This of course need to be improved lot more, esp if India is to transition to a more supply-side economy this decade...leveraging its ~ 2 trillion market cap.

The real issue for Pakistan on other hand is its market cap is 40 billion USD and that took a dip from 90 billion just a year or so ago. That means it can leverage on very little internally....its credit rating is junk too. Forex reserves are low and idle too, waiting for some sustained breakout somewhere.

Frankly, I.K admin is quite desperate if they are trying to ask for debt relief just because of corona....and it doesn't give a good look for investor and economic confidence either (which is what an admin/govt should focus on doing the hard but more permanent way). These two are important to get people to invest on their own dime and bear the risk themselves (rather than essentially tier-dependent "socialised" risk on Pakistan taxpayer/revenue like debt does in the end).

Its for this reason, that the govt should not have taken this decision to "urge" debt relief for Pakistan....because sympathetic ear erodes each passing cycle. You just got to pull your bootstraps up at some point and do the hard work in making Pakistan more attractive for business and genuine supply chain investment+integration etc.

Don't think anyone is going to re-package debt either because most have already done so for Pakistan (as much as they can I believe, but I could be wrong) and they want a good chunk of 5 - 10 year reforms in Pakistan first (to have Pakistan prove it is willing to do its side to improve its finances)....rather than be taken for ride in yet another typical cycle.

Like rest of region, Pakistan govt must look to get out of running businesses. Govts are very inefficient at that, its too much intervention at too much cost to rest of country.

@Chak Bamu @Socra @Jungibaaz

 

[SQ8]

Actually lot of Indian debt is actually tied up in those foreign reserves (NRI bonds/capital account) to begin with ... the yields are quite low because of trust in Indian economy+admin (and credit rating). This of course need to be improved lot more, esp if India is to transition to a more supply-side economy this decade...leveraging its ~ 2 trillion market cap.

The real issue for Pakistan on other hand is its market cap is 40 billion USD and that took a dip from 90 billion just a year or so ago. That means it can leverage on very little internally....its credit rating is junk too. Forex reserves are low and idle too, waiting for some sustained breakout somewhere.

Frankly, I.K admin is quite desperate if they are trying to ask for debt relief just because of corona....and it doesn't give a good look for investor and economic confidence either (which is what an admin/govt should focus on doing the hard but more permanent way). These two are important to get people to invest on their own dime and bear the risk themselves (rather than essentially tier-dependent "socialised" risk on Pakistan taxpayer/revenue like debt does in the end).

Its for this reason, that the govt should not have taken this decision to "urge" debt relief for Pakistan....because sympathetic ear erodes each passing cycle. You just got to pull your bootstraps up at some point and do the hard work in making Pakistan more attractive for business and genuine supply chain investment+integration etc.

Don't think anyone is going to re-package debt either because most have already done so for Pakistan (as much as they can I believe, but I could be wrong) and they want a good chunk of 5 - 10 year reforms in Pakistan first (to have Pakistan prove it is willing to do its side to improve its finances)....rather than be taken for ride in yet another typical cycle.

Like rest of region, Pakistan govt must look to get out of running businesses. Govts are very inefficient at that, its too much intervention at too much cost to rest of country.

@Chak Bamu @Socra @Jungibaaz

Unfortunately you are looking at successive cycles where “self serving” leadership has used government run businesses to give jobs for political points. An example being PIA, which has been the proverbial mistress to PPP or PML(N) trying to land key districts in elections by providing nonsensical jobs to people from the area. This has overburdened the economy with ten thousands of excessive employees and even ghost ones.

 

[RIP Pak LAW]

This is beykari attitude... Pak govt is actually looking for an opportunity in this virus crisis for more money / debt clearance