Statistics released by SBP tell that every Pakistani owes Rs 130,000

[Nothing]

Rs 130000/- is NOTHING for most upper middle class families these days. An upper middle class family of four can easily pay this amount in 4-5 years. It amounts to approx. 11000/- per month. Many people spend this much on snacks and restaurants.

That is an incorrect assumption from many angles. First one can pay internal debt like this. But that is taking money out of circulation and depriving economy for cash flow. Again so-called big fishes have their money tied to stocks and properties. Valuation of those assets is based on demand. For e.g. an individual with Billion USD ins tock of a single company can't sell it at valuation in one day. That will crash stock prices so his net worth. Same applies to property. Don't worry about internal debt much until the economy is expanding and inflation is underway. But don't take money from a private bank that is double edge sword. GOP is famous for it for some unknown reasons. The only worry should be a foreign debt which you need to pay in a different currency. That is highly mismanaged in most of developing countries. Sooner or later everyone has to come to a point where they will show empty pockets.
Many European countries did and many in South America did in past. Pakistan is on edge hanging on thread provided by China. Don't take it as a negative point but true. That is because of current government f****d up a giant scale. They should have known about import forecasting due to CPEC and their metro and energy projects. I see it as gross negligence and ppl should go to jail for this. But the topic for another day. Back to debt it is good if your economy is expanding at healthy rates but bad if money is getting used on non-productive projects. Time will tell where GOP has used the money.

 

[CriticalThought]

That is an incorrect assumption from many angles. First one can pay internal debt like this. But that is taking money out of circulation and depriving economy for cash flow. Again so-called big fishes have their money tied to stocks and properties. Valuation of those assets is based on demand. For e.g. an individual with Billion USD ins tock of a single company can't sell it at valuation in one day. That will crash stock prices so his net worth. Same applies to property. Don't worry about internal debt much until the economy is expanding and inflation is underway. But don't take money from a private bank that is double edge sword. GOP is famous for it for some unknown reasons. The only worry should be a foreign debt which you need to pay in a different currency. That is highly mismanaged in most of developing countries. Sooner or later everyone has to come to a point where they will show empty pockets.
Many European countries did and many in South America did in past. Pakistan is on edge hanging on thread provided by China. Don't take it as a negative point but true. That is because of current government f****d up a giant scale. They should have known about import forecasting due to CPEC and their metro and energy projects. I see it as gross negligence and ppl should go to jail for this. But the topic for another day. Back to debt it is good if your economy is expanding at healthy rates but bad if money is getting used on non-productive projects. Time will tell where GOP has used the money.

If you read the OP, there is a high increase in foreign debt as well. But regardless, internal or external, the current levels of debt to GDP are still scary. Infrastructure is a component of productive economy, but it is not the only one - not by a large margin. Somebody needs to convert this investment into economic opportunities. A handful SEZs sounds like a very bad plan for it.

In Australia we like to say that tax cuts are like borrowing from our children. I'll take this further: taking on debt is like mortgaging our children.

Rather than downplaying the problem, I am happy to play my part in dealing with it.

 

[Mugen]

Well it looks like PMNL might win yet again, so get ready for it to be x4 greater soon.

 

[Dubious]

Statistics released by SBP tell that every Pakistani owes Rs 130,000
February 16, 2018 By:Samaa Web Desk Published in Economy, Pakistan Be the first to comment!

KARACHI: As per the latest figures released by the State Bank of Pakistan on Friday, every Pakistani is now indebted by Rs 130,000.

Wow a further increase from the Rs 57,000 CJP was told

https://defence.pk/pdf/threads/cjp-says-every-pakistani-owes-rs57-000.563189/

if they know

How will they know? So far everyone has lied and managed to loot!

 

[senses]

Lol 4 Years ago, when i started my university, the very first lecture given to us was about Pakistan economy, The average debt was around Rs 85,000, 4 Years down the road, it stands at Rs130,000. Talk about PML(N) Governance.

 

[El Sidd]

We are in 1933.