S&P downgrades Pakistan’s long-term credit rating

[The Accountant]

what makes you think pakistani expatriates pay attention to those ratings ?

Why not? Although they don't know much about difference between B and B minus but this is a negative and is creating negative sentiments

 

[nahtanbob]

Why not? Although they don't know much about difference between B and B minus but this is a negative and is creating negative sentiments

it does not look like people are investing based on fundamentals. of course people pay attention to the interest rate. it is based on sentiment. it looks like Prime Minister Imran Khan inspires some positive sentiments

the bigger issue is a lot of immigrants do not have much money to spare. that is a bigger obstacle than S&P ratings

 

[Skull and Bones]

it does not look like people are investing based on fundamentals. of course people pay attention to the interest rate. it is based on sentiment. it looks like Prime Minister Imran Khan inspires some positive sentiments

the bigger issue is a lot of immigrants do not have much money to spare. that is a bigger obstacle than S&P ratings

It's clever on Imran Khan's part to target the pakistani diaspora, rather than big banks or managed retirement funds, as the bonds cannot be insured or the premium will be too high for a B- rated bond. And I don't think these pakistani investors are that well aware of the investment risk imposed by bonds of similar creditworthiness.

 

[The Accountant]

it does not look like people are investing based on fundamentals. of course people pay attention to the interest rate. it is based on sentiment. it looks like Prime Minister Imran Khan inspires some positive sentiments

the bigger issue is a lot of immigrants do not have much money to spare. that is a bigger obstacle than S&P ratings

Yes, people do not bother to check the fundamentals as they are not aware of such technicalities but if your newspaper headline says that S&P has declined credit rating of Pakistan then it will definitely effect decision of a significant no of investor ... After all it is hard earned money of people ...

Furthermore, what makes you think that they don't have money to invest ? You are talking about people who are sending 20 Billion dollars annually through official channel and amount being sent through the unofficial channel is even greater ... So your assumption is incorrect ...

Secondly, why are we discussing the bonds and people behavior? My simple question was the reasoning behind this change ... There is not a single thing unexpected thing which has happened infact a lot of positive news from the structural point of view are received in past couple of months ...

Energy and gas prices are now stabilised and there is no more addition to circular debt ... Fiscal deficit trim downed, current account deficit trimed down ...

Immediate financial crisis avoided without even going to IMF, hence the option of IMF is still open ... So with all the positive changes why the hell ratings are being downgraded? Just because Pakistan managed the crisis without visiting IMF ?

 

[VCheng]

It's clever on Imran Khan's part to target the pakistani diaspora, rather than big banks or managed retirement funds, as the bonds cannot be insured or the premium will be too high for a B- rated bond. And I don't think these pakistani investors are that well aware of the investment risk imposed by bonds of similar creditworthiness.

The results of the sales realized will make everything clear, cleverness or no cleverness.

 

[HariPrasad]

Ik, they cant help it, they want their masters attention.

Seems very upset to loose your old master.

 

[Pakhtoon yum]

Seems very upset to loose your old master.

We never had one to begin with, although u have one for centuries, but sometimes we lossen the leash. Makes you think your free, dont get ur self hurt big boi

 

[Turingsage]

The results of the sales realized will make everything clear, cleverness or no cleverness.

After all the retiring Chief Justice has already proven his Baldrick style cleverness. After many months and a huge amount of fanfare he has managed about 1% of the funds necessary for the mega dam. As time passes those that wanted to give have already done so and in the future decades little more than that 1% will be collected.

 

[VCheng]

After all the retiring Chief Justice has already proven his Baldrick style cleverness. After many months and a huge amount of fanfare he has managed about 1% of the funds necessary for the mega dam. As time passes those that wanted to give have already done so and in the future decades little more than that 1% will be collected.

As I have always maintained, there is nothing like actual results to judge the veracity of the claims and promises made.

 

[Menace2Society]

Most nations would have folded during WOT. Economic damage is to be expected and Pakistan is only now getting the space to put their finances right.

If by 2030 Pakistan is still in the same condition then the country is doomed for good. But I strongly suspect with honest leadership of IK and barring any major conflict the economy will rebound and Pakistan will be in a present day Malaysia like situation which is best case scenario. Have to work hard and smart!

 

[Śakra]

what makes you think pakistani expatriates pay attention to those ratings ?

What makes them think pakistani expats even have money to invest? They are one of the poorer diaspora.

 

[khail007]

Only time will tell. Pakistan is having trouble paying off loans at 2-3% interest rate, while promising investors a return rate of 5%. Only idiots will fall for such scams.

Sir G, then just give chance to only time, rather than availing it yourself.

 

[nahtanbob]

What makes them think pakistani expats even have money to invest? They are one of the poorer diaspora.

I do not have hard data. some of them are living on modest incomes

Yes, people do not bother to check the fundamentals as they are not aware of such technicalities but if your newspaper headline says that S&P has declined credit rating of Pakistan then it will definitely effect decision of a significant no of investor ... After all it is hard earned money of people ...

Furthermore, what makes you think that they don't have money to invest ? You are talking about people who are sending 20 Billion dollars annually through official channel and amount being sent through the unofficial channel is even greater ... So your assumption is incorrect ...

Secondly, why are we discussing the bonds and people behavior? My simple question was the reasoning behind this change ... There is not a single thing unexpected thing which has happened infact a lot of positive news from the structural point of view are received in past couple of months ...

Energy and gas prices are now stabilised and there is no more addition to circular debt ... Fiscal deficit trim downed, current account deficit trimed down ...

Immediate financial crisis avoided without even going to IMF, hence the option of IMF is still open ... So with all the positive changes why the hell ratings are being downgraded? Just because Pakistan managed the crisis without visiting IMF ?

the remmitances are to support day to day living expenses of loved ones. Some goes to purchase property.

median income of pakistani american is $62,000. they have to raise family, pay for health care/higher education and save for retirement. it does not allow anything for purchase of bonds.

the results from the dam collection fund speak for themselves

 

[Viny]

This is a short time phenomena, with rising public awareness and governments compulsion to improve financial health of country and to bring openness in govt activities, countries economic health are bound to improve, unless either the youth again gets misdirected or US goes crazy about the country.

Focus should be now to support the export industry, give them capital subsides in form of tax rebate and protect them, provide global opportunities, unless they bring $$$s from foreign market or your service sector brings it, the financial health cannot be improved. Leasing infrastructure or natural resources is only going to gain some time before thing doom for worse.

 

[The Accountant]

I do not have hard data. some of them are living on modest incomes



the remmitances are to support day to day living expenses of loved ones. Some goes to purchase property.

median income of pakistani american is $62,000. they have to raise family, pay for health care/higher education and save for retirement. it does not allow anything for purchase of bonds.

the results from the dam collection fund speak for themselves

First of all, are these bonds for Pakistani Americans only ?

From where the hell did you get median income of Pakistani plus median income is no way a meaure of capacity of investment ... So all your figures assumptions are baseless shit ...