We are going to burn through reserves

[Zibago]

Endless complains about inflation and fuel prices now when IK does something about it, people are still complaining.

I never complained about it because I knew why things happen only partisan hacks whined without reason

He did the right thing. He is a politician who needs to win elections

There would be enough time to increase prices if he survives politically

We dont have the money

So when he subsidises it people complain. When he doesn't people complain. Funny isn't it

People with two braincells were in favour of a sensible economic policy

Damn politicians all over the Arab/Muslim world, only thinking about next election and bankrupting their countries.

We have this same cancer in Tunisia Unfortunately.

Political parties are all the same, right ,left, centrists, Brotherhood, we tried them all, with the same results. ...

Damn Democratic system if its only about elections and power ....

Hey I thought we were alone
Its good to know we arent the only people with suicidal policies

 

[peagle]

What Imran Khan has announced is basically providing subsidy for petrol. The only way I see this going forward is through burning our hard earned reserves

This will end poorly for Pakistan

https://twitter.com/x/status/1498315366392647684

Why would it burn Pakistan's foreign reserves?
Because the spending and support will be done internally in Pakistani rupees.
It is not good to make simple assumptions.

They must have done their calculations, and made the required adjustments from the available resources. The finance minister said in a TV interview that they discussed this package with the IMF so as to avoid any confusion, and it does not effect any existing agreements or spending plans.

So I fail to see how this effects the foreign reserves, it does not, you are just making your own assumptions. That's not right.

 

[Zibago]

reserves

Oil is an imported item
Its not extracted from Tando Allah Yar

 

[peagle]

Oil is an imported item
Its not extracted from Tando Allah Yar

Right, I think the government and the IMF know that as well.
Unless you know more then the government and the IMF, it is better to not make assumptions.

If they had taken this step without consulting the IMF, I would agree with you, because I have my own questions, but it seems they have done their due diligence.
And, I don't pretend to know more then the government and the IMF.

 

[RoadRunner401]

No sir
PMLN has ruled multiple times in the past
This is what it will do
Immediately increase sales tax by 1-2%
Immediately do a massive tarrif increase
Followed by massive lending infratuture projects and kick backs

Last year of their election they will quickly stop rupee devaluation/subsidize it(that had to happen due to massive lending they did) for lower inflation leading to a bust

You think so, Is that why PML_N is offering premier ship to PPP and PPP is offering it to PML_N? NO, it's because they both knows whom ever takes the top job is finished for good...

 

[muhammadhafeezmalik]

Its higher everywhere hence why no panic amongst lenders
Inflation is transitory..
Oil prices will falll soon and is will CAD

قرض کی پیتے تھے مے لیکن سمجھتے تھے کہ ہاں
رنگ لاوے گی ہماری فاقہ مستی ایک دن​

 

[Bossman]

it is foreign debt eventually. Am I missing something ?

Not necessarily - you are missing inflation

 

[ziaulislam]

قرض کی پیتے تھے مے لیکن سمجھتے تھے کہ ہاں
رنگ لاوے گی ہماری فاقہ مستی ایک دن​

 

[ghazi52]

 

[Turingsage]

but don’t realize the mountain of debt we been put under from previous administrations.

This govt has amassed debt at 2 to 3 times rate of previous administration

I know ppl hate on Musharraf but I remember reading economics magazines in university and they used to list Pakistan as an emerging economy.

Musharraf was receiving FREE billions from the US to subsidise the economy and the army.

Also, people don’t wanna work hard they wanna be sponsored abroad. A true catch 22.

This is GOVERNMENT POLICY. Which govt in the world has a ministry specifically to export people abroad instead of finding work in Pakistan.

PTI making sure to scuttle the ship before the clown brigade comes back to power again.

Lets assume you are right. This constitutes treason. To actively work on policies to bankrupt the country is treason. How does this improve Pakistan ?

i think we will go to IMF we can't escape. this relieve seems some other arrangement already planned outside IMF deal. what other reason PM IK says we are on track now.

This is the 22nd time you have gone to the IMF having promised and AGREED reforms in taxation, cutting circular debt, cutting govt expenditures, selling off non performing govt enterprises etc.
This govt has FAILED as have previous govts. The IMF got tough this time and IK still broke the terms.
I am not sure how long the patience of IMF can stretch before it breaks.

People with two braincells were in favour of a sensible economic policy

You assume the course plotted was "sensible". A revolving door of finance ministers, special advisors, policy switch turnarounds sometimes lasting just a few weeks.
A lot of rhetoric but little or no action.
LAND OWNERS HAVE TO BE TAXED AT THE HIGHEST RATE.
Property speculation should be taxed.
Capital gains have to taxed at 40% as we do in the UK

This govt and previous govts have moved the burden of tax on the poorest and middle classes and then they ask why don't they pay their taxes.

They don't because Pakistan has one of the worlds MOST regressive taxation system that is clearly unjust and extractive of the poor.

They must have done their calculations, and made the required adjustments from the available resources.

You think ?
This is election fever and NOTHING has been thought out regarding the economy.
IMF will not comment as it would be accused of being partisan.
IMF are spitting feathers but must stay mum.

 

[Zibago]

This govt and previous govts have moved the burden of tax on the poorest and middle classes and then they ask why don't they pay their taxes.

Tax system has to be improved but at the same time public spending needs to be controlled
You cant continue to subsidize consumption and develop at the same time without a high export base

 

[terry5]

Man your lucky
Everywhere in the world prices have rocketed
Bills upto your eyeballs increase of 30% on average here in West Indies
Wages still at same level as before
Suffering and strife

And your still complaining lol

 

[Turingsage]

Tax system has to be improved but at the same time public spending needs to be controlled
You cant continue to subsidize consumption and develop at the same time without a high export base

You would be able to afford subsidies, as we do even in UK for the poorest. If you tax rationally and progressively.

You cannot afford it if you tax the poor outrageously, offer endless subsidies to the rich, make sure the rich pay little or nothing on VAST unearned wealth.

Pakistan as I said has the one of the worst regressive taxation system in the world designed by the rich for the rich to preserve and expand their wealth. Especially the unearned variety.

 

[Zibago]

You would be able to afford subsidies, as we do even in UK for the poorest. If you tax rationally and progressively.

Multiple cities got blocked when even the demand for documentation via cnic for purchases was given

You cannot afford it if you tax the poor outrageously, offer endless subsidies to the rich, make sure the rich pay little or nothing on VAST unearned wealth.

The thing is a subsidy on fuel benefits rich the most
They are the one who are going to get the most relief after this price cut

Pakistan as I said has the one of the worst regressive taxation system in the world designed by the rich for the rich to preserve and expand their wealth. Especially the unearned variety.

It does but the way to fix this requires tough measures that have been delayed multiple times due to political implications

 

[ziaulislam]

This govt has amassed debt at 2 to 3 times rate of previous administration



Musharraf was receiving FREE billions from the US to subsidise the economy and the army.



This is GOVERNMENT POLICY. Which govt in the world has a ministry specifically to export people abroad instead of finding work in Pakistan.



Lets assume you are right. This constitutes treason. To actively work on policies to bankrupt the country is treason. How does this improve Pakistan ?



This is the 22nd time you have gone to the IMF having promised and AGREED reforms in taxation, cutting circular debt, cutting govt expenditures, selling off non performing govt enterprises etc.
This govt has FAILED as have previous govts. The IMF got tough this time and IK still broke the terms.
I am not sure how long the patience of IMF can stretch before it breaks.


You assume the course plotted was "sensible". A revolving door of finance ministers, special advisors, policy switch turnarounds sometimes lasting just a few weeks.
A lot of rhetoric but little or no action.
LAND OWNERS HAVE TO BE TAXED AT THE HIGHEST RATE.
Property speculation should be taxed.
Capital gains have to taxed at 40% as we do in the UK

This govt and previous govts have moved the burden of tax on the poorest and middle classes and then they ask why don't they pay their taxes.

They don't because Pakistan has one of the worlds MOST regressive taxation system that is clearly unjust and extractive of the poor.



You think ?
This is election fever and NOTHING has been thought out regarding the economy.
IMF will not comment as it would be accused of being partisan.
IMF are spitting feathers but must stay mum.

Lol
You are bad at maths
GDP to debt ratio of pkistan is lowest in region

Problem isnt debt but tax collection