We are going to burn through reserves

[Zibago]

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

 

[hydrabadi_arab]

Imran Khan doing exactly what N league did. And that didn't win them election but left Pakistan near bankrupt. Next inflation crisis will be even worse.

This is where establishment need to come hard at these clowns who only think about next election. This shit is unsustainable.

 

[hydrabadi_arab]

So stupid why did he do this this will only increase CAD as consumption increases lower tax collection create balance of payment issues we are already having problems with current account Oil prices in the internationl market will only rise and instead of transferring that to connsumers he is trying to create a Balance of payment crises.

No increase in oil price till next budget. Like what? If oil goes to $120? And I cannot even imagine increase in circular debt now. Pakistan is going bankrupt soon, don't hold PKR.

 

[Azog]

Disaster for Pakistan

He has tried to damage Pakistan intentionally so he can politically survive.

 

[313ghazi]

How does he plan on paying for this subsidy? By reducing taxation and govt spending, or through borrowing?

 

[ziaulislam]

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

Yes. Lets see how fast we will burn
But remeber petrol is different consumption material as compared to general subsidy that was given to rupee

You only import fuel that you need

How will it impact inflation is what i am interested in

Key is STILL Revenue mobilzation where IK has clearly failed to tax retail and services sector(basically people pay tax but it is laundered by business due to establishment and politxal support, this corruption is several 100 times bigger then what my leader nawaz sharif is blamed for)

So stupid why did he do this this will only increase CAD as consumption increases lower tax collection create balance of payment issues we are already having problems with current account Oil prices in the internationl market will only rise and instead of transferring that to connsumers he is trying to create a Balance of payment crises. @ziaulislam your reaction please.

Bad move
But i hope he doesnt go for the nuclear option(subsidizing rupee)

Subsidizng one item is different then subsidizg everything

But key failure is and was revenue mobilzation

 

[Zibago]

How does he plan on paying for this subsidy? By reducing taxation and govt spending, or through borrowing?

Money printer goes brrrr

 

[AZ1]

What if barrel price comes down?

 

[mikkix]

Good decision. PTI must eat out all reserves. And should make sure nothing would left for shareef central establishment alliance for 2023. Pmln is forming new government so pti should not allow this alliance to use all the reserves on some brahmin class of particular region of Pakistan.

 

[AZ1]

Good decision. PTI must eat out all reserves. And should make sure nothing would left for shareef central establishment alliance for 2023. Pmln is forming new government so pti should not allow this alliance to use all the reserves on some brahmin class of particular region of Pakistan.

yes u r right, like imran khan must have thought that all these saving will go waste by next govt whover comes and he will be left with blames as ppl just remember subsidy. Pti now giving as much releif as possible even by burning reserves.

 

[ziaulislam]

Good decision. PTI must eat out all reserves. And should make sure nothing would left for shareef central establishment alliance for 2023. Pmln is forming new government so pti should not allow this alliance to use all the reserves on some brahmin class of particular region of Pakistan.

I doubt reserves will go down sincePTI secured an oil credit from saudis
But it will be an issue paying that post 2023

Also doubt IK will spend time out of jail post 2023 for him to be relevant in 2028
2028 will be bilawal turn

 

[Bossman]

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

Simple answer: we are getting oil on deferred payment basis. Plus subsidies don’t eat up reserves they contribute to the budget deficit.

 

[AZ1]

I doubt reserves will go down sincePTI secured an oil credit from saudis
But it will be an issue paying that post 2023

Also doubt IK will spend time out of jail post 2023 for him to be relevant in 2028
2028 will be bilawal turn

after zardari bilawal will be nothing, many anti ppp already in sindh.

 

[RIP Pak LAW]

Apparently we ain't going for the next IMF tranche since this will be unacceptable to IMF. Also i think China has agreed to have a delay in some of the cpect debt for this year. Lastly MBS is expected to visit in few weeks as well may be deferred oil payment is on the cards as well.

 

[Wood]

Damned if you do, damned if you don't!