What default means.?

[PakSword]

I'm reminded of Tupac's words in his music, which fit Pakistan quite eloquently; he said, "I'm from the gutter, and I'm still here," after being shot. After IK was shot, I was under the impression that things would go haywire, but our people are very docile. They like to take punishment. Another aspect you must consider is the iceberg approach to Pakistan; you only see 20% while the rest 80% is an underground activity in the country. We will survive. As for the money, it'll come if you get the house in order.

I remember I commented once that Pakistanis will only come out on roads and start an operation clean-up when their roti will be stopped.

Imran Khan, even if he was killed, people would have protested for a few weeks.. This calculation gave confidence to the perpetrators.

Roti is a different factor entirely.. It will be interesting to see how people behave.

Let me give you an example.. a friend of mine runs a towel factory. He was doing good business until June 2022 when he stopped receiving orders for raw towels and by July, he fired all the workers and closed his factory.

Last time, I asked him that whether he is ready to go fight for his rights on the roads.. because now he has no activity.. he said I can handle it.. you know why? Because he is surviving on his reserves..

Not everyone has that luxury though.. lets see how people would behave in Pakistan when ROTI stops.

 

[Goenitz]

We are getting default because we don't offer Fajr ki Namaz, look at Army their business is so successful.

Man.. he was kidding as far as I know.

 

[Goritoes]

Man.. he was kidding as far as I know.

Nope, he was serious very very serious, bhai these people actually that brainwashed.

 

[PakSword]

what about USD savings offshore,

How much are those savings?

 

[HAIDER]

We are getting default because we don't offer Fajr ki Namaz, look at Army their business is so successful.

Yes, golden saying of Haji sahib

 

[epebble]

Mikhail Gorbachev

Why did you add that name? I am curious.

 

[Skull and Bones]

It basically means the perfect time for India to attack, if it is planning to.

Sorry, you guys are doing an excellent job by yourself. Last thing India would want to attack and unite the whole nation against a common enemy.

 

[PakSword]

What I see.. if things don't go south on political front.. that Arab world will help Pakistan after the default.

But the money will come against certain demands and gaurantees.

 

[epebble]

When these will open for imports, havoc will follow.

A bank will issue a Letter of Credit only when it can guarantee funds. No funds no LC.

If you don't take your wallet and go to a store and buy a TV, will there be a "havoc"? No, you will come back home because the store will not sell you.

 

[HAIDER]

Sorry, you guys are doing an excellent job by yourself. Last thing India would want to attack and unite the whole nation against a common enemy.

If India attacks, we spread so much corruption in your country, your country will end up taken over by Bhutan ...

 

[PakSword]

A bank will issue a Letter of Credit only when it can guarantee funds. No funds no LC.

If you don't take your wallet and go to a store and buy a TV, will there be a "havoc"? No, you will come back home because the store will not sell you.

Why are you sending the man to buy a TV? send him to get wheat flour considering his children are crying back home.

Abhi mujhay woh saying yaad aagaee.. kisi sahib ne parmaya tha.. Daal mehngi hai tou murghi khalo..

 

[epebble]

Why are you sending the man to buy a TV? send him to get wheat flour considering his children are crying back home.

Abhi mujhay woh saying yaad aagaee.. kisi sahib ne parmaya tha.. Daal mehngi hai tou murghi khalo..

Dar will conserve foreign exchange to import food and fuel. TV represents discretionary import. Also, most of the food is grown in Pakistan. imports are a small part of food need. Even then, I have not read they are stopping food or fuel imports.

 

[ziaulislam]

what about USD savings offshore, like in payoneer? You can bring those in as needed. Govt gets the USD and you get the rupees you need.

Or am i missing something?

@PakSword ?

No you can't

Unless u do hawla hundi

 

[ziaulislam]

What you are saying is understandable. If an individual defaults, or a corporation defaults, what you have said actually applies.

Default impacts different countries differently. I am just thinking, what will be the sequence of events that will happen after Pakistan defaults on loans and declares bankruptcy.

First question is.. whether Pakistan will also default on its local currency loans or will it print more money to service the local loans? If it does, how much devaluation one can expect.

Whether the government will restrict people from drawing their own money from the banks? If it does, how does it plan to support the livelihoods in the short term?

Pakistan produces energy mostly with the imported oil and gas. Pakistan doesn't produce enough wheat and other crops that are key for people's survival. What is the government's plan to get these things?

If Pakistan is unable to import oil and hence cuts off the power of industries, the businesses will not be able to honor their agreements, and hence will close. This may lead the economy tailspinning into a lot of mess.

I am not saying that default is always bad. It has some positives as well. Things get so cheap in foreign currency terms that their is an influx of foreign investors into the country. But if that has happened in many other countries that have defaulted, it doesn't mean that Pakistan can attract the foreign investment and tourism in the same manner.

To attract a foreign investor or a tourist, three things are very important:

1 - Political stability
2 - Security
3 - Justice system

We all know how strong we are in these departments so lets not go into that detail.

Again, I know that Pakistan will definitely survive this, but what is the impact that you foresee on people's lives.. and how much chaos you expect.. is it like Sri Lanka or the French revolution type?

This exactly what people thought in 1971 “Hanooz Dilli Dur Ast”

 

[Turingsage]

Bajwa Nawaz Mikhail Gorbachev biryani Bhutto has acheived what RAW and CIA couldn't in decades


Creditor goes to biryani

Let's bet for the 8%
And forget 92%

This has to do with all politicians , including Imran and his acolytes. It has to do with every mover and shaker in Pakistan for 3-6 generation's. Pakistan's structural problems are deep ingrained and perennial that cannot be resolved by a single govt or in a short time.
In order for Pakistan to emerge from this levelling out at the bottom would require PAINFUL structural changes consistently applied over several decades. The will to carry through such a painful transition does not exist in the Pakistan society which is prone to starting something and stopping soon after the pain emerges and reverting back to type.