Pakistani Economic Stress Watch

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 04 Jan 2016 03:05

ramana wrote:Tell me about private sector vulnerability. Gvt will always be bailed out by 3.5 fourfathers.
How is cotton?


ramana Ji :

1. The massive outflow of Rs1.9 trillion from the banking system during Jan-March will not allow banks to make advances for the private sector.

2. Pakistan’s Market Year 2014/15 cotton production is forecast at 10.5 million 480 lb bales against the Market Year 2015/16 cotton production which was 10.0 Million bales

3. Pakistan’s Textiles Exports including raw Cotton for July – November 2014 was US$ 5,594,968 whereas for the Period July – November 2015 it is US$ 5,368,354
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Pakistani Economic Stress Watch

Postby Peregrine » 14 Jan 2016 02:31

Cwapistani ‘Currency’s overvaluation keeping Cwapistani exports down’
According to Former finance minister of Cwapistan and senior economist Dr. Hafeez Pasha, depreciation of Pakistani rupee is important to increase exports to the leading markets of the world

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Pakistani Economic Stress Watch

Postby Peregrine » 14 Jan 2016 21:01

Stock exchange plummets 718 points as Asian markets drop
ISLAMABAD: Due to administrative weaknesses, lower tax compliance and under-reporting, Pakistan is bleeding Rs3.3 trillion (about US$ 33 Billion) in revenue – an amount that is higher than this year’s total tax collection target – revealed an International Monetary Fund (IMF) report.

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 14 Jan 2016 21:05

Double Post Deleted

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Pakistani Economic Stress Watch

Postby Peregrine » 19 Jan 2016 02:35

Panic grips bourse as index plummets 1,216 points
KARACHI: Shares on the Pakistan Stock Exchange (PSE) took a plunge shortly after the start of the first trading session of the week.

Witnessing a slide by 1,216 points in the early hours on Monday, the benchmark index slightly recovered afterwards to clock up at 30,153.42 points at 12:30pm, which is down 2.7% from the start of trading.

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Pakistani Economic Stress Watch

Postby Peregrine » 24 Jan 2016 16:43

Foreign exchange reserves: Despite much-trumpeted level, borrowings continue
ISLAMABAD: Contrary to the popular view that Pakistan faces a heightened debt sustainability concern, the government has borrowed $956 million from commercial banks at expensive rates and without ensuring a competitive bidding process in the last four months, in a bid to keep the International Monetary Fund programme afloat.

The pattern has heightened debt sustainability concerns. The IMF itself has recently revised upwards its projections of the country’s total external debt to over $70 billion by June this year.

The desperation shown by the finance ministry exposes the hollowness of the much-trumpeted foreign currency reserves of $20.689 billion that also include roughly $5 billion held by commercial banks.

According to officials and independent economists, the government’s reliance on borrowings has increased alarmingly after receipts from exports plunged.

“Pakistan’s public debt-to-GDP ratio remains vulnerable to shocks due to still significant reliance on short-term debt instruments and, consequently, high gross financing needs”, noted the IMF. It added strengthening of debt and public finance management is needed to further reduce fiscal risks.

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Re: Pakistani Economic Stress Watch

Postby K Mehta » 24 Jan 2016 22:50

Thanks peregrine ji and hope this thread thrives.

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Pakistani Economic Stress Watch

Postby Peregrine » 26 Jan 2016 16:06

Blame game begins over PSM debacle
ISLAMABAD: A federal minister and management of Pakistan Steel have started exchanging blames and have made complaints to the prime minister as total liabilities of the mills cross Rs365 billion.

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Pakistani Economic Stress Watch

Postby Peregrine » 27 Jan 2016 03:49

Cotton powerhouse: Pakistan continues to face decrease in production
SLAMABAD:
As expected, Pakistan faces a decline in cotton production by up to 33% with Punjab’s contribution going down by almost 44%, according to data available as of January 15.

The decrease in cotton production does not come as a surprise as a depressed commodities market and floods have taken their toll on farmers, with inadequate measures against pest attacks also contributing to the decline.

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Re: Pakistani Economic Stress Watch

Postby abhijitm » 27 Jan 2016 18:10

Cotton shares 1/3rd of paki export. If we want to hit them hard, this is an option to look for.

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Pakistani Economic Stress Watch

Postby Peregrine » 27 Jan 2016 18:11

Deleted Duplicate Post.
Last edited by Peregrine on 27 Jan 2016 18:16, edited 1 time in total.

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Pakistani Economic Stress Watch

Postby Peregrine » 27 Jan 2016 18:15

Peregrine wrote:As willed by the Most Magnanimous, Most Merciful & Most Munificent!

Non-textile exports fall 22pc

ISLAMABAD: Pakistan’s non-textile exports fell by 21.81 per cent to $4.045 billion during the first half (July-December) of 2015-16 from $5.173bn in the same period last year, Pakistan Bureau of Statistics data showed on Tuesday.

product-wise details showed a decline of 77.47pc year-on-year in exports of overall petroleum products, mainly due to a 99.48pc drop in petroleum naphtha exports. Crude exports also declined by 60.64pc.

Carpets and rugs exports fell by 21.52pc and exports of sports goods dipped 3.27pc year-on-year. Exports of tanned leather dropped 26.04pc and leather products by 15.56pc.

Footwear exports dipped 23.49pc, primarily due to 28.84pc decline in exports of leather footwear.

Exports of surgical goods and medical instruments went up by 4.38pc, while engineering goods exports dipped 23.54pc during the period under review.

On a year-on-year basis, exports of gur declined by 59.84pc, cement 36.54pc, handicraft 99.74pc, molasses 42.84pc, furniture 32.78pc, gem 58.09pc. However, exports of jewellery increased by 0.30pc.

In the food basket, rice (basmati and non-basmati) exports dropped by 11.04pc. Exports of oil, tobacco also witnessed a decline during the period. However, exports of vegetables, spices, wheat and meat witnessed a growth.

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 27 Jan 2016 18:19

abhijitm wrote:Cotton shares 1/3rd of paki export. If we want to hit them hard, this is an option to look for.


abijitm Ji

Why only Cotton? India must Target all Pakistani Exports per my Post 27 Jan 2016 18:15

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 27 Jan 2016 19:23

IMF wants 27pc cut in development spending for meeting fiscal targets
ISLAMABAD: The International Monetary Fund (IMF) wants Pakistan cut its overall development budget by 27 per cent to keep fiscal deficit within limits and make up for revenue shortfall during the current fiscal year.

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Re: Pakistani Economic Stress Watch

Postby abhijitm » 27 Jan 2016 21:03

Idiots are shifting from cotton to sugarcane whilst their arch enemy is producing surplus.

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Re: Pakistani Economic Stress Watch

Postby member_22733 » 27 Jan 2016 21:06

After every terror attack, India must give money to western conumers to switch out from buying Bakistani sourced products. Use that as a weapon.

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Re: Pakistani Economic Stress Watch

Postby Prem » 27 Jan 2016 22:31

External debt may swell to $70 billion by year-end
Gubo Preparation

SLAMABAD: Pakistan’s external debt projections have been erratic since the beginning of the $6.2-billion International Monetary Fund (IMF) programme, creating uncertainty in debt management and indicating lack of reforms necessary to control ballooning debts.An analysis of all IMF reports released in the past two years reveals the agency’s latest debt projections for fiscal 2015-16 are higher by $11.6 billion compared to the estimates given in its first report, which was the base for signing the three-year $6.2-billion bailout package in September 2013.Pakistan’s debt situation not a pretty picture.The IMF had then projected Pakistan’s external debt would increase to $58.6 billion by 2015-16. Just two years down the line, the agency’s 9th review report estimates the external debt at $70.2 billion by end of the current fiscal.Projections from one quarter to another vary by a whopping $10 billion. This has not only created debt management issues but also underscores the need to implement reforms to curtail debt.In the last four months alone, the government borrowed $956 million from the commercial banks without competitive bidding to meet its foreign currency reserves related requirements.

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Re: Pakistani Economic Stress Watch

Postby amritk » 27 Jan 2016 22:58

Gurus, what explains the appreciation of PKR against INR over the last 5 years or so?

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 28 Jan 2016 00:01

amritk wrote:Gurus, what explains the appreciation of PKR against INR over the last 5 years or so?

amritk Ji :
This Article is dated November 6, 2015
IMF Says Pakistan's Currency Overvalued by as Much as 20%
Pakistan’s rupee, Asia’s best performing currency over the past two years, is overvalued between 5 percent to 20 percent, the International Monetary Fund estimated on Friday.

The Overvaluation of the Pak Re. is one of the main reason for the Reduction in Paki Exports
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Re: Pakistani Economic Stress Watch

Postby Abhay_S » 28 Jan 2016 00:23

^^^ reposting an old post of mine.

viewtopic.php?f=1&t=5728&p=1892987&hilit=rupee#p1892555

ps: formatting

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Re: Pakistani Economic Stress Watch

Postby kmc_chacko » 28 Jan 2016 06:53

GoI should list out Pakis Exports and give more concessions and subsidies for Exporting those items from India to those regions.

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Re: Pakistani Economic Stress Watch

Postby Falijee » 28 Jan 2016 17:14

I.M.F Expresses Alarm Over Pakistan's Swelling External Debt
Quote:
ISLAMABAD:
Pakistan’s external debt projections have been erratic since the beginning of the $6.2-billion International Monetary Fund (IMF) programme, creating uncertainty in debt management and indicating lack of reforms necessary to control ballooning debts.
Quote:
An analysis of all IMF reports released in the past two years reveals the agency’s latest debt projections for fiscal 2015-16 are higher by $11.6 billion compared to the estimates given in its first report, which was the base for signing the three-year $6.2-billion bailout package in September 2013.
The only way to fiscally "control" this artificial entity is to have an independent foreign third party sitting in their ministries 24/7 to monitor each and every expenditure! :mrgreen:
Quote:
The IMF had then projected Pakistan’s external debt would increase to $58.6 billion by 2015-16. Just two years down the line, the agency’s 9th review report estimates the external debt at $70.2 billion by end of the current fiscal.
Projections from one quarter to another vary by a whopping $10 billion. This has not only created debt management issues but also underscores the need to implement reforms to curtail debt.
In the last four months alone, the government borrowed $956 million from the commercial banks without competitive bidding to meet its foreign currency reserves related requirements. ( someone "influential" must have made a lots of money as a "go-between" the two parties :mrgreen: )
Quote:
“The glaring inconsistencies in the IMF’s own reports indicate that no meaningful reforms have been implemented in the past two years,” said Dr Ashfaque Hasan Khan, former director general of finance ministry’s debt department.
Quote:
The IMF has not yet included the impact of loans that Pakistan will obtain for implementation of China-Pakistan Economic Corridor (CPEC). Early this month, IMF’s mission chief to Pakistan Harald Finger said the IMF was waiting for the details of the CPEC arrangement.
During this period, no external unforeseen shocks have affected the economy, which could have been a factor for the haywire projections. Rather, the country has reaped advantages of the plunging global crude oil prices.

In their useless quest to be == with India, they have effectively mortgaged their nation to outside powers; it will the future generation who will be saddled with the problem !

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Re: Pakistani Economic Stress Watch

Postby Vipul » 29 Jan 2016 18:34

Shitistanis refuse to take responsibility to living beyond their means and now are conveniently blaming the Western-Jewish dominated financial institutions of the world in encouraging them to take more loans!!!!

The talk show circuit in pakistan is replete with 'anal'ysts who are claiming that more and more loans are being to Pakistan knowing fully well that it will not be able to service the interest payments and will default. Ultimately they claim the western powers want to neuter its atomic weapons using this financial leverage that they will have once the total loan quantum crosses $90 Billion in the next 3 years.

Ashfaque Hasan Khan who had predicted $70 billion loan outstandings in 2016 3 years back, says the total figure will cross $105 Billion in 2019. He is otherwise one of the few respected economists in Shitland but like a true pakistani he is claiming that PPP/Nawaz govt and IMF/Western lobby is hand in glove in the conspiracy to damage interests of the 'lone islamic atomi quwwat' and want to take possession of all its warheads.

There are some commentators who are eyeing the $3 Trillion reserves of China and want the Chinese to make them independent of the begging bowl (Give them $100 Billion) :rotfl:

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Re: Pakistani Economic Stress Watch

Postby kmc_chacko » 29 Jan 2016 19:36

They have already pledged their fertile land, power, water & port to China through CPEC. what are they going to pledge next?

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Re: Pakistani Economic Stress Watch

Postby Prem » 30 Jan 2016 00:39

Economist Asshfauqe is right , next ins-tallmen-t from IMF for Pakistan is due shortly
https://pbs.twimg.com/tweet_video/CZ6YiOXUsAAC3xZ.mp4

2 weeks ago , i had the pleasure of discussing Dekhonomy with intelligent Paki replying Patient Shahid Machood's claim that Paki Hukamaran took 3 Trillion $ out of Poakland in last 5 years. When asked if he is sure it's not Billion instead of Trillion , he said he has real Info and it is 3 Trillion $ and not Billion as well not t be confused with PKRupee. We all agreed that real Paki economy is the 3rd largest in the world if we do not count electricity production, consumption and stolen powerlines by the hundreds of Billions. :D

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Re: Pakistani Economic Stress Watch

Postby ramana » 30 Jan 2016 02:54

kmc_chacko wrote:GoI should list out Pakis Exports and give more concessions and subsidies for Exporting those items from India to those regions.



to support 'Make in India' and our farmers, India should waive duty on all these products.

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Re: Pakistani Economic Stress Watch

Postby Gagan » 30 Jan 2016 07:32

Jhujar wrote:We all agreed that real Paki economy is the 3rd largest in the world if we do not count electricity production, consumption and stolen powerlines by the hundreds of Billions. :D

Bhery cruel!
Bicharoon ko chane ke jhaad pe kyon chadhaate ho :mrgreen:

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Re: Pakistani Economic Stress Watch

Postby A_Gupta » 30 Jan 2016 17:14

http://www.reuters.com/article/pakistan ... SKCN0V70ZZ
A major power breakdown on Friday left 90 percent of Pakistan's largest and richest city, Karachi, without electricity and brought much of normal life to a standstill.
...
The third major outage of the country's dilapidated electricity grid within a month forced shops, hospitals and businesses to turn to back-up generators as the lights went out, including those in the provincial assembly.

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Re: Pakistani Economic Stress Watch

Postby A_Gupta » 30 Jan 2016 17:24

Actually, the IMF is upbeat about Pakistan, at least in press releases:
https://www.imf.org/external/np/sec/pr/2016/pr1605.htm

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Pakistani Economic Stress Watch

Postby Peregrine » 31 Jan 2016 01:21

NEPRA refuses to approve Rs23 billion higher cost for Nandipur power plant
ISLAMABAD: Government may find it difficult to run the 425-megawatt Nandipur power plant as the National Electric Power Regulatory Authority (Nepra) has turned down its request to approve an increase of Rs23 billion in the cost of the projec[/b]t and recover it from consumers.

“The government has landed in trouble after the power regulator refused to approve the increase in project cost. The Ministry of Water and Power believes that in this situation it will be unfeasible to run the plant and it will go bankrupt,” an official said.


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Re: Pakistani Economic Stress Watch

Postby Peregrine » 31 Jan 2016 02:58

Pakistan left with higher import of cotton

ISLAMABAD: Import of cotton has shown a sharp increase during the first half of the current fiscal year 2015-16, against the corresponding period of last year after a slump in domestic production.

According to latest figures, Pakistan’s cotton import jumped to 194,465 tons amounting to $310 million during July-December 2015 compared to 48,480 metric tons of cotton worth $113 million in the corresponding period last year.

Similarly, textile and clothing exports declined by 8.93% to $6.269 billion during the first half of FY16 from $6.884 billion in the same period of last year. The fall was witnessed despite duty-free access to the European markets under the GSP Plus scheme.

Cotton production in the country declined 33% with a decrease of 44% in the largest cotton producing province Punjab alone.

According to officials, climate change; including heavy rains, pest attacks and harsh weather across the cotton growing areas are to blame for the slump in production, due to which the crop in most areas of southern Punjab was badly damaged.

“Most of the cotton imports by Pakistani traders are being sourced from India, which is facilitating its cotton farmers by offering duty drawback facility, interest rate concessions and infrastructure schemes,” said sources in the Ministry of Commerce.

Showing his concern, Council of Loom Owners Association Chairman Wahid Khalique Ramay said that yarn prices had increased significantly due to shortfall of cotton. “This has led to an increase in prices of cotton fabrics and garments.

“This will also affect the country’s value added textile exports,” he noted.

He further said that the costly raw material of textile products was a key hurdle in competing with the international market. “Such is not the case in India, Bangladesh and Thailand and this is why these countries are capturing Pakistani markets in the region and globally.

“Almost 20-25% of looms have been closed down, the ratio of unemployment has also risen,” he added.

Furthermore, Pakistan Cotton Ginners Association (PCGA) has expressed concerns over the situation and has opposed any proposal pertaining to the waiving off duty and tax on import of cotton from India.

“The cotton economy is passing through its worst crisis in history. We must support both the growers and small loom owners and avoid benefiting big cartels at the cost of the national economy,” said the association chairman Nawab Shehzad.

He said that regulatory duty, sales tax and customs duty on the import of cotton should not be withdrawn and it must continue for the survival of local farmers as well as ginners.

He said India has been a major beneficiary of duty-free import of cotton yarn by Pakistan for about four years. This has badly hit the domestic industry and agricultural sector of the country under a well-planned conspiracy.

He said that farmers are now switching to other crops due to the injustice meted out to them, which would have long term implications on the national economy.

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Pakistani Economic Stress Watch

Postby Peregrine » 31 Jan 2016 21:36

Fewer jobs for Pakistanis in Middle East

ISLAMABAD: Once a happy hunting ground for job seekers, Pakistanis have seen work prospects in Gulf countries shrink dramatically in recent years, most prominently in war-hit countries such as Syria, Iraq, Yemen and Libya.

According to figures submitted in the National Assembly recently, as many as 8.7 million Pakistanis have found work overseas between 1971 and 2015, over 84 per cent of which has been in Gulf countries. Saudi Arabia has been the most popular destination catering to 4.3 million Pakistanis (49.4 per cent of all overseas workers) and hence a top source of foreign remittances ($2.89 billion between July-December 2015 according to State Bank).

The second largest country to host Pakistani workers has been the United Arab Emirates where 2.8 million have found work between 1971 and 2015.

Jobs in Kuwait, which had provided employment to 109,951 Pakistanis from 1971 to 2002, have shrunk dramatically in the years following the Arab Spring with only 132 Pakistanis given jobs in 2014 before rising slightly to 155 in 2015.

Despite being a major contributor for remittances, the US has seen only 4,760 Pakistanis find work between 1971-2015, while 12,170 were working in the United Kingdom during this period.

The story in crisis-hit countries, however has been quite different.

Iraq hosted 68,133 workers from 1971 to 2001. After US troops invaded the country in 2003 to oust strongman Saddam Hussain, the war had meant little to no job prospects.

But the situation began to improve 2012 onwards with 2,651 workers having found work there. According to the data provided by the Bureau of Emigration and overseas Employment, 32 Pakistanis found work there in 2012, jumping to 951 in 2013 and 1,041 in 2014. However, the rise of the Islamic State group in 2015 and the corresponding counteraction saw a corresponding fall in Pakistani workers going to Iraq with only 625 people going there during this time.

Syria, where Islamic State has a large footprint and has seen extended global counteraction from the likes of US, France, Britain and now Russia, saw no Pakistanis find a job there in the past five years. That is not to say, however, that Syria was ever a happy hunting ground for Pakistanis with only 346 people finding work there between 1971 and 2011.

It was a similar story in war-hit Libya. Before Muammar Qaddafi fell in 2011, 72,610 people had found work there. And while the trend was on the rise for a while after the dictator was killed, doubling from 1,872 in 2012 to 4,543 in 2013. However, increasing fighting saw that fall from 2,121 in 2014 to just eight in 2015. At the height of the fighting in 2014, around 7,040 Pakistanis had to be evacuated from the country. Around 700 Pakistanis remained in Sirte which were advised in August 2015 to leave as the situation there deteriorated.

Unrest and uprising in Yemen has also affected the Pakistani labour force there. According to the bureau, only 22 Pakistanis were employed in Yemen last year as a coalition of Gulf countries took on rebels. This was down from 137 Pakistanis who found employment there in 2014. As many as 5,420 Pakistanis had found employment in Yemen from 1971 to 2015. Renowned economist Kaiser Bengali blamed the government for not doing enough to ensure protections for Pakistanis working abroad, and for failing to create economic conditions within the country to stop the workforce drain.

“I know many textile sector industrialists in Karachi who have shifted their focus to stock business instead while those in iron and steel industry are now importing goods from China,” Bengali said as he explained how jobs within Pakistan were shrinking and causing more people to explore prospects abroad.

He warned that conflict in oil-rich Arab countries could render a large section of Pakistanis jobless who would have no option but to return home, at which point the country would have another economic crisis on its hands.
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Re: Pakistani Economic Stress Watch

Postby neeraj » 01 Feb 2016 00:14

Power crisis costs $4bn in four years thanks to import of generators - Pakistan can manufacture 4++ generation bandar but has to import home generators

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Re: Pakistani Economic Stress Watch

Postby Prem » 03 Feb 2016 10:13

Pakistani textiles take a hit, orders drop 50%
AOA

FAISALABAD: The global economic slowdown is taking its toll everywhere,Pakistan, the 4th largest exhibitor at the Heimtextil Fair Germany, received almost half the number of order this year compared to the previous year.We represent the entire textile industry.Heimtextil is a mega event for all textile millers and exporters of the world, where this year around 220 Pakistani exhibitors participated under the Trade and Development Authority of Pakistan (TDAP) umbrella at the Pakistan pavilion.“Pakistani exporters have seen a massive drop in international orders lately, due to the energy crisis and the slowdown of global economy,” noted an exhibitor at the Heimtextile Fair and Ayesha Textile Mills CEO Abdulla Kamal, while talking to The Express Tribune.“One of the main reasons behind receiving fewer orders has been the exporters’ inability to dispatch consignments in time due to energy shortages,” he added.“Despite the advantages of having cheap labour and producing better cotton, the exporters’ expectations could not be met due to the energy and worsening law and order situation.”He said international buyers were moving away from Pakistani market due to delay in shipments. “On the other hand, China is very good in timely delivery.“This year China has got the edge over all other participants; the first to take full advantage of the exhibition,” he added.
Moreover, he said the law and order situation in the country was another major hurdle in grabbing orders. “The recent terrorist attacks on schools and colleges have dented Pakistan’s reputation internationally. Buyers are frightened to even come visit us, let alone give orders,” he added.“Even the old ones are not visiting Pakistan due to which we have to fix meetings abroad,” he lamented, adding that this time India and Bangladesh got a far better response compared to Pakistan.Another hurdle, identified by Kamal, was the shortage of gas, “the textile mills need steam for processing the fabric.”He was of the view that the Liquefied Natural Gas (LNG) was not an alternative.“This winter is the first season when we are running our mills on LNG, which is very expensive. It is 25% more expensive than natural gas (CNG). That, of course, increases the cost of production.”.

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Re: Pakistani Economic Stress Watch

Postby sum » 03 Feb 2016 11:56

Despite being a major contributor for remittances, the US has seen only 4,760 Pakistanis find work between 1971-2015, while 12,170 were working in the United Kingdom during this period.

Just 12000 working out of 1.7 million Brit-Pakis?
Is the 12000 a true figure? WTF are the rest doing?

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Re: Pakistani Economic Stress Watch

Postby ArmenT » 03 Feb 2016 11:59

sum wrote:
Despite being a major contributor for remittances, the US has seen only 4,760 Pakistanis find work between 1971-2015, while 12,170 were working in the United Kingdom during this period.

Just 12000 working out of 1.7 million Brit-Pakis?
Is the 12000 a true figure? WTF are the rest doing?

Perhaps they are collecting unemployment benefits, while loudly protesting that everything in England is haraam :lol: .

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Re: Pakistani Economic Stress Watch

Postby Kashi » 03 Feb 2016 12:12

sum wrote:Just 12000 working out of 1.7 million Brit-Pakis?
Is the 12000 a true figure? WTF are the rest doing?


I believe it refers to those who are Paki citizens who travelled to UK from Pakistan for work. Not Brit-Pakis who are UK (or dual) nationals.

Of course, the employment and economic status of Brit-Pakis is well known.

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Re: Pakistani Economic Stress Watch

Postby Haresh » 03 Feb 2016 12:55

LokeshC wrote:After every terror attack, India must give money to western conumers to switch out from buying Bakistani sourced products. Use that as a weapon.


When I visit supermarkets in the UK, I am amazed at the amount of pak foodstuffs they stock.

These same stores Tesco, Morrisons etc want to open up in India. It should be a condition in the contracts that they do not stock any paki produce. It is detrimental to Indian National security.
If they do this then they should have to pay a "Indian National Security" tax. Infact all paki goods sold in India should have to pay this.

Falijee
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Re: Pakistani Economic Stress Watch

Postby Falijee » 04 Feb 2016 18:41

Pakis Living From Paycheue To Paycheque: IMF Approves $ 497 Million Tranche For Pakistan After Bail Out Review
Quote:
ISLAMABAD: The International Monetary Fund (IMF) said on Thursday it had agreed to release a $497 million tranche for Pakistan after the latest review of a bailout package awarded in 2013, though the disbursement still requires IMF board approval. (so the "paycheque" has not yet been deposited "into the account" :mrgreen: )
Quote:
Addressing a press conference alongside IMF Mission Chief Harald Finger, Finance Minister Ishaq Dar reiterated the government's resolve to "convert loss-making state-owned enterprises into profitable enterprises".
He denied that the government had "rolled back" on its plans to save state-owned institutions,( and in the process using the police to kill protesters like in the PIA standoff) saying, "We will do everything possible to bring structural changes to make sure bleeding is stopped." (but what about the "bleeding" due to nepotism, corruption,at the highest level !)
Quote:

An IMF loan helped Pakistan stave off a default in 2013, when dwindling foreign exchange reserves covered less than six weeks of imports.
Pakistan's reserves have since swelled to $20.5 billion in January from $11bn in mid-2013.( no mention of the corresponding "debt swelling" and the burden to future generations of (madrassah) educated Pakis )
Quote:
Earlier today, the ministry of finance denied reports that IMF officials were angered at Pakistan's lack of progress concerning privatisation of power companies and other state-owned entities.
"The Reuters story is not true, we are sorry to see them carrying the story," stated the secretary of finance. :((
Reuters had earlier reported that Pakistan has shelved plans to privatise its power supply companies and will miss deadlines to sell other loss-making state firms, reneging on promises Islamabad had made to the International Monetary Fund (IMF) in return for a $6.7 billion bailout three years ago.
Two government officials with direct knowledge of the situation said IMF officials meeting with Pakistani officials in Dubai this week were angered by the backtracking, but they expected the IMF would still release the remaining $1.6 billion to be disbursed.
The "too big to fail nuclear blah blah argument" to support this "artificial entity" :mrgreen:
Quote:

“It was embarrassing and brutal,” a senior Pakistani official present at the meeting in Dubai, told Reuters, describing the IMF's response when mission head Harald Finger was told that the government had decided not to sell nine power distribution companies because of fear of labour unrest.
“It was nothing less than a dressing down. If the IMF still doesn't penalise us, then all I can say is, 'We're very lucky,'” the official said.
The other source, a senior finance ministry official who was also in Dubai, confirmed the account.
So the fate of Pakiland is not decided in Pakiland but in Dubai of all places. Security concerns for the IMF ?
Quote:

Both Pakistani officials said the IMF had made clear its frustration with the delays to privatisation drive.
"The IMF is asking the obvious question: 'Why didn't you start negotiations [with unions] earlier? Why wasn't this handled better at the political level?'" the senior government official said.(IMF needs a 24/7 physical presence in the Finance And Other Ministries to monitor each dollar given to them )
The Pakistani officials told the IMF that taking on the power companies' 400,000 unionised employees was fraught with risk, and that instead the government would bring in independent boards of directors to improve management. (who will "bell" the cat :mrgreen: )
Quote:
Privatisation of loss-making enterprises
The privatisation of 68 state-owned companies, which include loss-making enterprises like Pakistan International Airlines and Pakistan Steel Mills, is a crucial part of the IMF deal and was meant to bring the country's finances back on track.
Such enterprises drain about $5 billion every year from state coffers, around an eighth of the government's fiscal revenues last year of around four trillion rupees ($38.2 billion).
The government has made some progress, including raising more than $1 billion by selling its entire stake in Habib Bank Ltd, but has struggled to find buyers for most of the companies and faced stiff opposition from labour unions.
Quote:
Prime Minister Nawaz Sharif on Monday invoked the Essential Services (Maintenance) Act 1952 for six months, barring protesting members of the Pakistan International Airlines from participating in any union activity.
The strike, however, were not halted. While flight operations were initially on schedule, they were also halted across the country following the deaths of PIA employees Inayat Raza and Salim during Monday's protest.
Stuck between a rock and a hard place, as the cliche goes :mrgreen:


- cross posted from STUP thread !

Peregrine
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Pakistani Economic Stress Watch

Postby Peregrine » 08 Feb 2016 00:19

Army seeks funds from finance ministry to raise new security division
ISLAMABAD: Pakistan Army has sought additional funds from the finance ministry to raise a new security division and an additional 28 security battalions, it emerged on Sunday.

A statement released by the ministry of finance said senior officials from the army had a meeting with Finance Minister Ishaq Dar at his ministry in Islamabad, where the demand for “financing and the release of funds” was made by military officials.
In Cwapistan DEMANDS are made by MILITARY OFFICIALS
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