The World'd Riskiest Sovereign Debt - Pakistan Placed 3rd

[ironman]

Full report- Global Sovereign Credit Risk Report 1st Quarter, 2010

 

[blain2]

Should this be news to anyone given that there is a war going on in the neighbourhood and it is having an impact on Pakistan's economy?

The oft talked about loss of $50 billion is but a tangible value of losses over that past 6 years. Add to this the goodwill that has been lost in the investor community and the number would actually be even greater.

The fact of the matter is that the reason Pakistan is on the list is not because Pakistan is prone to default, rather its the uncertainty of returns that haunts everyone.

 

[sparklingway]

Why is there a sudden rise in the last week of January?

Somebody should go and check financial news and dig up the news during these days that might have triggered this (I've got a paper on Monday ). As far as I remember, this was the time of the high tension between the judiciary and the executive.

Shaukat Tarin resigned on February 23 and the sovereign risk indicator suddenly comes down. There wasn't any big change in fiscal or monetary policy that could have triggered such a big drop. I'm confused as to whether Shaukat Tarins' resignation is important or not in this regard.

 

[indian_warrior]

Pakistan will be in first position in 1-2 years.

Foreign exchange will dry once WOT is over in afghanistan.

There is no export industry other than agriculture. But long term ending WOT will benefit pakistan.

 

[ameer219]

Pakistan will be in first position in 1-2 years.

Foreign exchange will dry once WOT is over in afghanistan.

There is no export industry other than agriculture. But long term ending WOT will benefit pakistan.

Not really true, we also exportt

Textile Yarn & Fabrics
Articles of Apparel and Cloth Accessories
Footwear
Leather and Leather Products
Guwar Meal, Guar Gum and Guwar Protein Extracts
Surgical Instruments
Fruit
Arts Resins and Plastic Material
Chemical Material
Refractory Cements
Mortars
Electric Machinery and Appliances
Refractory Blocks and Tiles
Viscose Fiber (Rayon Fiber)
Sports Goods

Currently, Pakistan is moving towards other sectors such as service sector in the past decades so that one industry can support the others in case of a crisis.


Export Pakistan, Export Laws Pakistan, Export products from Pakistan legal services

 

[indian_warrior]

Not really true, we also exportt

Textile Yarn & Fabrics
Articles of Apparel and Cloth Accessories
Footwear
Leather and Leather Products
Guwar Meal, Guar Gum and Guwar Protein Extracts
Surgical Instruments
Fruit
Arts Resins and Plastic Material
Chemical Material
Refractory Cements
Mortars
Electric Machinery and Appliances
Refractory Blocks and Tiles
Viscose Fiber (Rayon Fiber)
Sports Goods

Currently, Pakistan is moving towards other sectors such as service sector in the past decades so that one industry can support the others in case of a crisis.


Export Pakistan, Export Laws Pakistan, Export products from Pakistan legal services

Where is service sector export for pakistan? Current manufacturing export industry is not enough and can't compete with China.

 

[notsuperstitious]

The fact of the matter is that the reason Pakistan is on the list is not because Pakistan is prone to default, rather its the uncertainty of returns that haunts everyone.

What is the basis of that statement? Pakistan would have defaulted recently if not for the bailout. I'm not selling cheap CDS hoping someone will bailout again.

Yes globally nobody wants any sovereign to default, but the risk of a country defaulting remains.

 

[ameer219]

Where is service sector export for pakistan? Current manufacturing export industry is not enough and can't compete with China.

Sir, whether we can compete with China or not its a different story. What I would like to point out is that we have other industries, and we don't solely depends on the agriculture industry.

Sir,I am unable to acess the commerce website of Pakistan, so I am only able to give you a quote from wikipedia.

Pakistan's service sector accounts for about 53.3% of GDP.[41] Transport, storage, communications, finance, and insurance account for 24% of this sector, and wholesale and retail trade about 30%. Pakistan is trying to promote the information industry and other modern service industries through incentives such as long-term tax holidays.

The government is acutely conscious of the immense job growth opportunities in service sector and has launched aggressive privatisation of telecommunications, utilities and banking despite union unrest

Economy of Pakistan - Wikipedia, the free encyclopedia

 

[PakiPashtun]

What is the basis of that statement? Pakistan would have defaulted recently if not for the bailout. I'm not selling cheap CDS hoping someone will bailout again.

Yes globally nobody wants any sovereign to default, but the risk of a country defaulting remains.

I disagree

 

[sparklingway]

There is no export industry other than agriculture. But long term ending WOT will benefit pakistan.

Pakistan's biggest imports are textiles. Textile sector still constitutes more than half of our exports. We haven't been major agricultural exporters for years now. While the share of textile exports have dropped from nearly 70 percent to just over 50 percent, they are still the major export products.

I can no longer hold this, so I'm going to say this:-

You are no less than a hate mongering preacher. All your statements, this thread and all other threads are perfect examples of utter ignorance dedicated to proving that somehow when the US leaves Afghanistan, Pakistan will collapse and that somehow Pakistan's economy has been running entirely on CSFs and US aid.

There are many learned and well contributing Indian members on these forums and many of them contribute positively towards debate, but you deserve the irrational poster with the green flag who won't stop talking about war. I'm sick and tired of you putting up with your one line BS on every thread dealing with the Pakistani economy. Either get over with your myopic and short sighted views or just stop blabbering illogically.

 

[sparklingway]

Sir,I am unable to acess the commerce website of Pakistan, so I am only able to give you a quote from wikipedia.

It says 41 just after that. Dude, you could used the reference on Wikipedia. It refers to a table on the Statistics Division (now FBS) website.

Anyways, this is share in GDP, not exports. I've posted the exports table from the Economic Survey '08-'09 already.

 

[SMC]

Pakistan will be in first position in 1-2 years.

Foreign exchange will dry once WOT is over in afghanistan.

There is no export industry other than agriculture. But long term ending WOT will benefit pakistan.

Again, that's quite thick of you. You have shown quite a bit of ignorance about the subject and despite being told the shortfallings in your knowledge numerous times you continue to say the same thing again and again.

 

[ironman]

Pakistan will be in first position in 1-2 years.

Foreign exchange will dry once WOT is over in afghanistan.

There is no export industry other than agriculture. But long term ending WOT will benefit pakistan.

Please care to explain other than making speculations. We all here to learn.

 

[sparklingway]

Again, that's quite thick of you. You have shown quite a bit of ignorance about the subject and despite being told the shortfallings in your knowledge numerous times you continue to say the same thing again and again.

You prove this guy that he's factually, logically and rationally wrong and he continues with the tirade of "US funding Pakistan through WoT" posts. Somebody knock some sense into him or at least give him a break.

 

[SMC]

Pakistan spending money on WOT using its man power and rupees. It is getting money from US in dollars. It is like export industry. If WOT ends that entire industry collapse.

Pakistan's current export manufacture industry is not enough for its survival.

Truth hurts. But it is fact.

I have to make someone clear. What you're saying is not the truth but your truth. Your version of the truth.

Do you know how Pakistan has lost money? Foreign investment losing is a big part of that. And that will be in dollar. Plus the ruppees could be used domestically even if we are to buy your argument. I don't have a Business degree but this is well known.

And again, I have told you this before yesterday, yet you continue on your childish rampage.