Pakistani Economic Stress Watch

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Anujan
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Re: Pakistani Economic Stress Watch

Postby Anujan » 30 Apr 2019 19:34



Total nonsense. The problem is actually the opposite. Pakistann military is the one which has a big country burden. If Pakistan army weren't burdened with the responsibility of regular coups and ousters, imagine how professional and well trained they'll be?!

It's well known that a typical Pakistani soldier fights with the training and skill of 8 Indian soldiers. If Pakistan army didn't have a country burden, they would easily win against India :shock:

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Re: Pakistani Economic Stress Watch

Postby sudhan » 30 Apr 2019 19:39

Anujan wrote:
It's well known that a typical Pakistani soldier fights with the training and skill of 8 Indian soldiers. If Pakistan army didn't have a country burden, they would easily win against India :shock:


Hain? Only 8? What about the other 2? Sorry to inform, you need to visit reeducation camps, immediately,

Or Ghafoora comes calling

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Re: Pakistani Economic Stress Watch

Postby Anujan » 30 Apr 2019 19:42

Gafoora apparently in his press conference said Pakistan was doing great in the 60s. Hint: there was a presidential system then.

For a change like this, they need a 2/3 majority in the Parliament. Which dimran does not have. Expect some late night visits in netas home by tftas

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Pakistani Economic Stress Watch

Postby Peregrine » 30 Apr 2019 21:09

Pakistan's debt worth $27b to mature in two years: IMF - Shahbaz Rana

ISLAMABAD: The International Monetary Fund (IMF) has said that $27 billion worth of Pakistan’s external debt will mature in two years – the mounting repayment burden that carries serious implications for bailout package talks started on Monday.
The technical teams of the IMF and Pakistan have locked into negotiations for 10 days amid authorities hoping to clinch a deal on May 10.
The $27 billion maturing external debt is equal to 27% of Pakistan’s total external debt and liabilities as of end February, highlighting the gravity of challenges that the government of Prime Minister Imran Khan faces.
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Pakistani Economic Stress Watch

Postby Peregrine » 30 Apr 2019 21:39

S&P BSE SENSEX

Index Current : 39,031.55 – Change : -35.78 - % Change : 0.09%

Market Capitalization of BSE Listed Co. (Rs.Cr.) : 1,52,54,042.42 – $ 1 / Rs 69.8550

Market Capitalization of BSE Listed Co. (U S $.) : 2,183.76 Billion

Index Current : 36784.44 - Pt. Change : -241.83 - % Change : -0.65%

Market Capitalization of BSE Listed Co. (Rs Tr.) : 7,505,308,241,221 - $ 1 / Rs 142.30

Market Capitalization of BSE Listed Co. (U S $.) : 52.42 Billion

B S E : P S E : : 41.66 : 1

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Re: Pakistani Economic Stress Watch

Postby ArjunPandit » 30 Apr 2019 21:50

I so wish there was a time series of your ratios over here NEATLY plotted into a chart

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Pakistani Economic Stress Watch

Postby Peregrine » 30 Apr 2019 23:56

ArjunPandit wrote:I so wish there was a time series of your ratios over here NEATLY plotted into a chart
Arjun Pandit Ji :

AAP KI SEVA MEIN PRUSTOOT KARTEY HAIN :

INDICES

FOR : 1D - 1M - 6M - YTD - 1Y - 3Y - 5Y

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Re: Pakistani Economic Stress Watch

Postby ArjunPandit » 30 Apr 2019 23:58

peregrineji i want to see the barbadi of pakistan with the abaadi of india...

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 01 May 2019 00:26

ArjunPandit wrote:peregrineji i want to see the barbadi of pakistan with the abaadi of india...
Arjun Pandit Ji :

Please try at S&P BSE SENSEX for Indian Data.

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Pakistani Economic Stress Watch

Postby Peregrine » 01 May 2019 00:48

Image

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Re: Pakistani Economic Stress Watch

Postby khan » 01 May 2019 02:58

Anujan wrote:Gafoora apparently in his press conference said Pakistan was doing great in the 60s. Hint: there was a presidential system then.

For a change like this, they need a 2/3 majority in the Parliament. Which dimran does not have. Expect some late night visits in netas home by tftas

I think the Army now senses that the days of their needs going unquestioned are coming to an imminent end.

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Pakistani Economic Stress Watch

Postby Peregrine » 01 May 2019 23:17

Crumbling steel - Ali Raza Gilani

Recently, the steel production has fallen in the country. From 4.9m tonnes in 2017, total crude steel production fell to 4.7 million tonnes in 2018. The dip came in the last three months of the year and continued on in 2019.

Many business owners ascribe the decrease to increase in ferrous scrap prices in the international market. This, coupled with ham-fisted currency depreciation, has made the import of scrap very expensive.

The economy’s slowdown, especially in the construction sector, and slashing of the Public Sector Development Program has affected steel production. Some mills have cut down operations while others are shutting down.

‘It is not profitable to remain in the business anymore. I’m scaling back to metal work again,’ said the proprietor of a melting mill.

Revenue collection has fallen down by around 40 per cent. Businesses are scaling down despite the industry being a highly protected one. Apart from the customs duty, there is a high regulatory duty as well as anti-dumping duty on Chinese billets and rebars

Steel manufacturing is an electricity-intensive process. Most of the installed furnaces are inductive, using high frequency currents that heat up iron into a liquid state, which is then cast into billets or ingots.

This process produces hazardous industrial smoke because of which mills were closed down last year by the Punjab Environmental Protection Department. Factory owners had to install furnace fume extraction systems to resume production.

‘This has added to the already skyrocketing cost of production,’ said the proprietor, pointing towards a newly installed pollution control system.

At 17pc ad valorem tax, steel melters and re-rollers are a big source of indirect tax revenue for the Federal Board of Revenue. However, due to high electricity usage they are allowed to pay sales tax through electricity bills under a fixed regime based on number of units of electricity used. The current rate is Rs13 per unit. They can adjust their sales tax liability by subtracting credit on tax already paid on import of scrap.

Though the melters and rerollers are given a choice to stay in the ad valorem regime, the tax office prefers the fixed regime as it is easier to get timely revenue. Otherwise, under-declaration of sales continues and the authorities have to initiate audits, stock taking, and in extreme cases, conduct raids.

‘Those getting assessed in the normal regime are distorting the market. They are not paying as much sales tax as we are and hence are able to sell below market price’, argued the proprietor. This is an oft-repeated argument that there should be a unified tax regime for the sector. Whenever there is an alternative, it creates losers and winners.

Some owners also complain of unregistered plants being set up in the garb of manufacturing something else. These unregistered mills are producing billets and rebars without paying sales tax.

This is unlikely as furnaces require a larger industrial B3 connection and that is monitored by electricity supplying companies. It is possible that some very small furnaces with below one tonne capacity are using B2 connections to produce billets. Such mills are an exception rather than the norm.

The method employed in Pakistan for steel production is highly inefficient. Elsewhere, electric arc furnaces are used which are twice as efficient in terms of energy consumption and controlling environmental pollution. Here, smaller units stick to induction furnaces that are a drag on a country already facing an energy crisis. However recently, they were penalised for pollution.

Steel consumption is a good indicator of economic development of any country. Rebars are a major portion of steel produced and are an essential part of construction. As the focus of the government is to provide affordable housing for its citizens through Naya Pakistan Housing scheme, rebars would have to be made at affordable rates and at par with globally available prices.

Pakistan lags behind per capital steel consumption as compared to India, Asia, and the world average. We need a robust steel industry. This requires a fair taxation system and regulation that protects workers and the environment, without driving the mills out of business.

WORLD STEEL

WORLD STEEL - Crude steel production monthly]

INDIA : Jan = 0,9183,000, Feb = 08,748,000, March = 09.412,000 Total : 27,343.000

TERRORISTAN : Jan = 255,000, Feb = 259,000 , Mar = 290,000…Total : 00.806,000

INDIA : PAKISTAN : : 33.94 : 1

With an INDIA / Terroristan Ratio of 41 : 1 in Stock Market Cap, 9.96 : 1 in GDP and 33.94 : 1 in Steel Production Terroristanis want to be Equal = Equal of India!

Long may they Try!

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Re: Pakistani Economic Stress Watch

Postby nachiket » 02 May 2019 01:10

Peregrine wrote:Pakistan lags behind per capital steel consumption as compared to India, Asia, and the world average. We need a robust steel industry. This requires a fair taxation system and regulation that protects workers and the environment, without driving the mills out of business.

WORLD STEEL

WORLD STEEL - Crude steel production monthly]

INDIA : Jan = 0,9183,000, Feb = 08,748,000, March = 09.412,000 Total : 27,343.000

TERRORISTAN : Jan = 255,000, Feb = 259,000 , Mar = 290,000…Total : 00.806,000

INDIA : PAKISTAN : : 33.94 : 1

Another way to look at the disparity -
India Steel production in 2018 - 106.5 MT which comes out to 8.875 MT per month.
Pakistan Steel production in 2018 - 4.7 MT.

So cunning yindoos produce more than twice the amount of steel in a month that the TFTA pakis produce in a year :rotfl:

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 02 May 2019 05:08

Peregrine wrote:Pakistan lags behind per capital steel consumption as compared to India, Asia, and the world average. We need a robust steel industry. This requires a fair taxation system and regulation that protects workers and the environment, without driving the mills out of business.

WORLD STEEL

WORLD STEEL - Crude steel production monthly

INDIA : Jan = 0,9183,000, Feb = 08,748,000, March = 09.412,000 Total : 27,343.000

TERRORISTAN : Jan = 255,000, Feb = 259,000 , Mar = 290,000…Total : 00.806,000

INDIA : PAKISTAN : : 33.94 : 1
nachiket wrote:Another way to look at the disparity -
India Steel production in 2018 - 106.5 MT which comes out to 8.875 MT per month.
Pakistan Steel production in 2018 - 4.7 MT.

So cunning yindoos produce more than twice the amount of steel in a month that the TFTA pakis produce in a year :rotfl:
nachiket Ji :

From various sources I have gleaned the following information :

The Bhilai Steel Plant

The governments of India and the USSR entered into an agreement, signed in New Delhi on 2 March 1955. It commenced on Production 04 February 1959 with a Capacity of 1.1 Million Tons with an Initial Production Capacity of 1.1 Million Tonnes.

This plant has been expanded in stages and now has a Production Capacity of 7.7 Million Tonnes

The Pakistan Steel Mill Plant

Zulfikar Ali Bhutto laid the foundation stone of Pakistan Steel Mills on December 30, 1973.

The completion of the steel mill was formally launched by General Zia-Ul-Haq the then President of Pakistan on the 15th of January 1985 with a Capacity of 1.1 Million Tonnes and a Lay out Design of 2.2 Million Tonnes. It was closed down in 2015 and is now lying idle. Possibly a couple of Thousand

The Bhilai Steel Plant

The governments of India and the USSR entered into an agreement, signed in New Delhi on 2 March 1955. It commenced on Production 04 February 1959 with a Capacity of 1.1 Million Tons with an Initial Production Capacity of 1.1 Million Tonnes.

This plant has been expanded in stages and now has a Production Capacity of 7.7 Million Tonnes

The Pakistan Steel Mill Plant

Zulfikar Ali Bhutto laid the foundation stone of Pakistan Steel Mills on December 30, 1973.

The completion of the steel mill was formally launched by General Zia-Ul-Haq the then President of Pakistan on the 15th of January 1985 with a Capacity of 1.1 Million Tonnes and a Lay out Design of 2.2 Million Tonnes. It closed down in 2015.

PTI govt inherited loss-making entities, says info minister

(LAST UPDATED SEPTEMBER 28, 2018)

Talking about Pakistan Steel Mills, he said total number of its IDLE employees was 17000 whose monthly salary bill was Rs 380 million while its overall loss was Rs 200 billion. He said Pakistan Steel Mills was going into loss since 2007

Sir Ji : The Overall Loss is still Mounting and I anticipate that it will hit the Rs 300 Billion mark before the "Gravy Train Stops. :rotfl:

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 03 May 2019 00:29

Bart Ji,
Bart S wrote:Actually their military burden is at least 2x as much as their pensions and other items are cleverly obfuscated under civilian heads.

I Refer you to my Post of 20 Apr 2019 03:58 on Page 68 of this Thread :

Govt to pay Rs3.6 trillion on defence, debt servicing
This increase of Rs 576 Billion at at Rs. 139 per US$ was about US$ 4.00 Billion.

Thus Pakistan’s Defence Budget in 2018-19 is about US$ 14 Billion

This Figure is agreed by the Terrorisanis. Sipri seems to be out of its cotton-picking mind!

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Pakistani Economic Stress Watch

Postby Peregrine » 03 May 2019 00:33

S&P BSE SENSEX

Index Current : 38,981.43 - Pt. Change : -50.12 - % Change : -0.13%

Market Capitalization of B S E Listed Co. (Rs.Cr.) : 1,52,09,721.43 - $ 1 / I R 69.5875

Market Capitalization of B S E Listed Co. (U S $.) : 2,186.70


P S E

Index Current : 36,547.63 - Pt. Change : -236.81 - % Change : -0.64%

Market Capitalization of P S E Listed Co. (Rs.Tr.) : 7,380,531.74 Million - $ 1 / T R 142.25

Market Capitalization of P S E Listed Co. (U S $.) : 51.88 Billions

B S E : P S E : : 42.15 : 1


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Pakistani Economic Stress Watch

Postby Peregrine » 03 May 2019 16:50

DEBT DEBT GLORIOUS DEBT NOTHING LIKE IT SO IT IS THE BEST

SO FOLLOW ME FOLLOW INTO THE HOLLOW AND THERE WE WILL WALLOW IN G-L-O-R-I-O-U-S DEBT!

Pakistan seeks $1b budgetary support from ADB

NADI, FIJI: Pakistan’s economy is going through tough times and as per the norm the country is back on the International Monetary Fund’s (IMF) doorstep. Technical teams of the IMF and Pakistan are locked in negotiations for a bailout package and hope to strike a deal by May 10.

A lot is riding on this package and the Asian Development Bank (ADB) has also hinted at providing budgetary support following an agreement on the IMF programme.

“This time there is a request for budget support of close to $1 billion, in addition to the IMF programme,” said ADB President Takehiko Nakao while addressing a press conference at the ADB’s 52nd Annual Meeting.

He said Pakistan may witness the restoration of budgetary support, in addition to other loans provided by the ADB.

Pakistan’s budgetary support has remained suspended for the past over two years due to the deterioration of macroeconomic conditions. The Manila-based lending agency requires a Letter of Comfort from the IMF to accept the request.

“If there is a programme, we are very happy to provide budget support and loans, quite soon and another one can be a step further.”

Highlighting that the lending agency has very large operations in Pakistan, the ADB president said he had met with Pakistani authorities in April and had also had ministerial-level meeting in Fiji.

“We are ready to support Pakistan based on IMF discussions and we are closely talking with IMF authorities about the progress,” Nakao added.

After reaching an agreement with the IMF, several avenues are expected to open for cheap financing for Pakistan in terms of borrowing from international lenders including the World Bank and ADB. The programme will enhance the country’s credibility in the eyes of international lenders.

Pakistan is looking to finalise a $6.5-billion loan programme with the IMF, spanning over three years as without IMF umbrella, the country’s external-sector position remains largely fragile.

Pakistan has got 12 IMF bailout packages since the late 1980s, with the last one being in September 2013.

“Pakistan has already requested the IMF for balance of payments support and they will have to repay these IMF loans too,” said the ADB president. Recently, the IMF projected external debt payment for Pakistan at $27 billion, which would mature in the next two years, pushing the country into tough negotiations with the IMF.

Although the bailout packages avert immediate balance of payments crisis, the country has to compromise its economic sovereignty due to repeated visits by the international lender.

Talking about Pakistan’s repeated return to the IMF, the ADB president said, “Pakistan has repeatedly visited the IMF for balance of payments support. They must repay the IMF, and then need some new programme.”

The ADB president was of the view that repeated visits were not a good approach and there was a need to be stable in terms of balance of payments and fiscal issues.

However, Nakao was optimistic about the growth prospects and remarked, “Pakistan has a great opportunity if macroeconomic stability is restored and if issues of security are addressed.”

Pakistan’s debt sustainability

Pakistan has exceeded its limit of 60% debt-to-GDP ratio, which raises red flags for the country’s economy. In an effort to control the ballooning debt, the government is working on three strategies including a non-interest current account surplus, maturity transformation and concessionary credit.

Speaking at a seminar titled ‘Is Debt Sustainability a Cause of Concern’ at the ADB’s 52nd Annual Meeting, Adviser to PM on Austerity Ishrat Husain said, “Pakistan’s legislature passed the Fiscal Responsibility and Debt Limitation Act, where the country had a ceiling of 60% of GDP for the external and domestic debt. But today, we have reached 72% of that.

“We are in breach of the law,” the adviser remarked.

“We want maturity transformation towards medium and long-term loans as short-term loans have too much risk responsiveness to the external economic environment,” he said.

The focus is also on concessionary credit. “We are talking to countries like Japan that used to be one of our single largest bilateral creditors and supported us through building infrastructure and a lot of development, but they have not done that for quite a long time,” the adviser said. He also shared with the audience that the government was trying to generate non-interest current account surplus by increasing exports, remittances and concessionary flows.

Mobilising foreign direct investment (FDI) to augment foreign exchange earnings and accumulating foreign exchange reserves, which are a cushion for debt risks, are also points of key focus, he added.

The PM aide said to contain the fiscal deficit, “we have to cut down our development budget, which is on infrastructure, human resources and poverty alleviation projects”.

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Re: Pakistani Economic Stress Watch

Postby sudhan » 03 May 2019 17:07

Peregrine wrote:DEBT DEBT GLORIOUS DEBT NOTHING LIKE IT SO IT IS THE BEST


“This time there is a request for budget support of close to $1 billion, in addition to the IMF programme,” said ADB President Takehiko Nakao while addressing a press conference at the ADB’s 52nd Annual Meeting.

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Just like usual, the pakis will burn through their IMF kitty in no time and will soon be left with just an empty bowl in hand..

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Pakistani Economic Stress Watch

Postby Peregrine » 03 May 2019 18:44

S&P BSE SENSEX

Index Current : 38,963.26 - Pt. Change : --18.17 - % Change : -0.05

Market Capitalization of B S E Listed Co. (Rs.Cr.) : 1,51,62,825.05 - $ 1 / 69.4575

Market Capitalization of B S E Listed Co. (U S $.) : 2,181.15 Billion

P S E

Index Current : 36,122.95 - Pt. Change : -424.68 - % Change : -1.16%

Market Capitalization of P S E Listed Co. (U S $.) : 51.28 Billion - Based on 98.84% of Market Capitalization on 02-03-2019

B S E : P S E : : 42.53 : 1


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Re: Pakistani Economic Stress Watch

Postby CalvinH » 04 May 2019 10:04

Peregrine wrote:Govt to pay Rs3.6 trillion on defence, debt servicing
This increase of Rs 576 Billion at at Rs. 139 per US$ was about US$ 4.00 Billion.

Thus Pakistan’s Defence Budget in 2018-19 is about US$ 14 Billion

This Figure is agreed by the Terrorisanis. Sipri seems to be out of its cotton-picking mind!

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Boy..A federal budget that goes negative 10% of total revenue receipts after debt servicing and defense expenditure only..Federal government has no money for anything else.

3.6T PKR/5.5T PKR = 65% of total central government revenues. For India this is ~13%. Paki Army really have a state...

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Re: Pakistani Economic Stress Watch

Postby Shaktimaan » 04 May 2019 10:05

It's so strange that these Pakis are begging for $1 billion here and there while simultaneously claiming equal equal with India. They must be simply brushed aside like insects.

$1 billion for an entire country the size of Bakistan is less than peanuts.

For example, the budget of the metro lines under active construction in Mumbai alone is more than $4 billion. In addition lines worth $3 billion more are under active stages of planning and will start construction in the next 18 months.

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Re: Pakistani Economic Stress Watch

Postby chetak » 04 May 2019 10:10

sudhan wrote:
Anujan wrote:
It's well known that a typical Pakistani soldier fights with the training and skill of 8 Indian soldiers. If Pakistan army didn't have a country burden, they would easily win against India :shock:


Hain? Only 8? What about the other 2? Sorry to inform, you need to visit reeducation camps, immediately,

Or Ghafoora comes calling


inflation has taken its terrible toll.

hence the effective figure has been reduced from 10 to 8.

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Re: Pakistani Economic Stress Watch

Postby yensoy » 04 May 2019 10:27

Captain rearranging deck chairs while the Titanic sinks...

SBP/FBR chairmen booted out: https://www.dawn.com/news/1480159/sbp-governor-fbr-chairman-shown-the-door


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Pakistani Economic Stress Watch

Postby Peregrine » 04 May 2019 14:37

yensoy wrote:Captain rearranging deck chairs while the Titanic sinks...

SBP/FBR chairmen booted out: https://www.dawn.com/news/1480159/sbp-governor-fbr-chairman-shown-the-door

yensoy Ji :

Many, many thanks for your Post as I'v "Discovered" the following Link :

https://www.youtube.com/watch?v=I6sj-2GRXVQ

Indeed. It is "Super Cool". Wish there was a Thread on our Forum Thread for Posting such Cool Entertainment!

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 04 May 2019 14:44

Peregrine wrote:Govt to pay Rs3.6 trillion on defence, debt servicing

This Figure is agreed by the Terrorisanis. Sipri seems to be out of its cotton-picking mind!

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CalvinH wrote:
Boy..A federal budget that goes negative 10% of total revenue receipts after debt servicing and defense expenditure only..Federal government has no money for anything else.

3.6T PKR/5.5T PKR = 65% of total central government revenues. For India this is ~13%. Paki Army really have a state...
CalvinH Ji :

All the Better for keeping Terroristan in its present state and hopefully TO ITS IMPLODING END!

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Pakistani Economic Stress Watch

Postby Peregrine » 04 May 2019 15:26

Public debt surges Rs3.6tr to a hefty Rs27.8tr - Shahbaz Rana
ISLAMABAD: The International Monetary Fund (IMF) has expressed the desire that Pakistan should “protect” its development spending at this year’s level in the next budget, which will limit the government’s options to achieve primary fiscal balance


I say - Bring it ON!

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Re: Pakistani Economic Stress Watch

Postby K Mehta » 04 May 2019 21:20

Central bank’s forex reserves down by $196mn

Foreign Exchange reserves held by State Bank of Pakistan (SBP) fell by US$ 219 million to US$8.805 billion, a data released by the bank said on Thursday.

It said during the week ending April 26, the SBP’s reserves decreased due to external debt servicing and other official payments.

The net foreign reserves held by commercial banks stood at $6.937 billion as on April 26, while the net liquid foreign reserves held by the country stood at US$15.742 billion.

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Re: Pakistani Economic Stress Watch

Postby K Mehta » 04 May 2019 21:32

This seems to have escaped from the cheel ki paini Nazar

Khasadars protest non-payment of salary
WANA: More than 1,400 personnel of the Khasadar Force boycotted duty and abandoned their checkposts in Wana, the headquarters of South Waziristan tribal district, to protest non-payment of salaries for the last 10 months.

The personnel of Levies Force, however, continued to man the checkposts after the khasadars boycotted the duty.

Dil Nawaz, the additional deputy commissioner of South Waziristan tribal district, told this correspondent that the salaries of khasadars would be released within a few days.

He said that he would try to convince the protesting personnel of Khasadar Force to end the protest and take up their duty immediately.

Khasadar Force personnel including Omar Khan Wazir, Rasool Jan Wazir and Salam Wazir told journalists that their families were passing through hard times as they had not received salaries for the last 10 months. They said that they were compelled to take out their children from schools owing to financial difficulties.

They said the protesting personnel would continue to boycott duty till they were paid salaries.

It is to the mentioned here that the Khasadar Force personnel have also boycotted the polio immunisation drive over the salary issue. Owing to the strike, at least 50,000 children remained deprived of polio vaccination in the tribal district.


Levies, Khasadar personnel boycott polio duty in tribal districts
The Levies and Khasadar personnel in several tribal districts boycotted duty during the anti-polio campaign on Monday.

They vowed to continue the boycott till acceptance of their demands. The Levies and Khasadar personnel in the merged districts anonymously announced to boycott security duty during the anti-polio drive. The decision was made in a meeting of core committee of both the forces in all merged district. The Khasadar and Levies personnel have presented 22-point charter of demands to government.

The boycott forced the health department to postpone the scheduled three-day campaign against polio in several areas of Bajaur tribal district.

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Pakistani Economic Stress Watch

Postby Peregrine » 04 May 2019 22:21

K Mehta wrote:Central bank’s forex reserves down by $196mn
Foreign Exchange reserves held by State Bank of Pakistan (SBP) fell by US$ 219 million to US$8.805 billion, a data released by the bank said on Thursday.

It said during the week ending April 26, the SBP’s reserves decreased due to external debt servicing and other official payments.

The net foreign reserves held by commercial banks stood at $6.937 billion as on April 26, while the net liquid foreign reserves held by the country stood at US$15.742 billion.
K Mehta Ji :

The above Figure of Terroristani Reserves being US$8.805 billion is BALDERDASH. COBBLERS AND PIFFLE PAFFLE! I refer you to the following Article dated 06-01-2019 :

Alarm bells

It states :
For the record, our net international reserves are now at negative $11 billion. What that means is that our liquidity has already dried up (read: no dollars left). As of November 30, international reserves with the SBP were $7,265 million; short-term drains (12 months or less) amounted to roughly $11 billion; and forward swaps stood at roughly $7 billion.


I stopped "Posting Terroristan's Forex Reserves" :rotfl:

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habal
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Re: Pakistani Economic Stress Watch

Postby habal » 04 May 2019 22:25

bankruptcy aa nahi rahi
bankruptcy aa gayi hain

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Re: Pakistani Economic Stress Watch

Postby K Mehta » 04 May 2019 22:39

Crunch time for universities

Cutbacks for scientific equipment, reduction in travel grants for conferences abroad, fewer government overseas scholarships, and elimination of research grants for fresh PhDs are now happening. Construction work on some new university campuses has stopped. Although the Higher Education Commission (HEC) says it can accommodate the budgetary cuts, several projects will be axed.

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Re: Pakistani Economic Stress Watch

Postby K Mehta » 04 May 2019 22:51

Peregrine wrote:The above Figure of Terroristani Reserves being US$8.805 billion is BALDERDASH. COBBLERS AND PIFFLE PAFFLE! I

I stopped "Posting Terroristan's Forex Reserves" :rotfl:

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Lol
Note that the "official" figure of 8.8 is even less than the bakshish they've got from the four fathers recently.

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Re: Pakistani Economic Stress Watch

Postby Vips » 04 May 2019 23:42



Mashaallah - IMF has told Pakistan that it has to pay back $25 Billion in the next 12-18 Months and it needs $50-60 Billion in the next 24 months just to stay afloat. :lol:

Jahangir Tareen is busy promoting crony capitalism and one of the experts being considered to be brought in as an advisor to Immy the charsi is the founder of Abraaj group who was arrested for fraud and is out on bail of $20 Million :rotfl:

Another gem and already a conspiracy theory that pakis will be mouthing in the days to come: All the experts and advisors being brought in have studied abroad, have spent a majority of their time abroad and worked in World Bank/IMF, so they will only have IMF interest foremost in their mind, they will not be 'patriotic' when they deal with Pakistan (meaning they will conspire to harm pakistan and as pakis they should take the side of pakistan even if it means not being professional in discharge of their duties)

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Pakistani Economic Stress Watch

Postby Peregrine » 05 May 2019 04:02

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Re: Pakistani Economic Stress Watch

Postby partha » 05 May 2019 12:12

Vips wrote:

Mashaallah - IMF has told Pakistan that it has to pay back $25 Billion in the next 12-18 Months and it needs $50-60 Billion in the next 24 months just to stay afloat. :lol:

...

Another gem and already a conspiracy theory that pakis will be mouthing in the days to come: All the experts and advisors being brought in have studied abroad, have spent a majority of their time abroad and worked in World Bank/IMF, so they will only have IMF interest foremost in their mind, they will not be 'patriotic' when they deal with Pakistan (meaning they will conspire to harm pakistan and as pakis they should take the side of pakistan even if it means not being professional in discharge of their duties)

So Pakistan couldn't even project its requirements for the next two years correctly. IMF had to tell them they need $50B in the next 24 months! They need $50B but Sad Umar towards the end of his tenure, was leaking to press that a deal has been reached "in principle", "agreement signed for $6 to $8B" etc as if he had scored a great victory. Experts coming from abroad will most likely be dual nationals with a western passport and could well be agents of western intel agencies.

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Pakistani Economic Stress Watch

Postby Peregrine » 06 May 2019 00:25

Provinces resist IMF’s demand of Rs430b cash surpluses - Shahbaz Rana
ISLAMABAD: The International Monetary Fund (IMF) has sought over Rs430 billion cash surpluses from provinces in the next fiscal year – a demand that the federating units have termed unrealistic and linked any cash surplus with ability of the federal government to collect more taxes.
In a meeting with Pakistani officials at the Q-Block, the IMF mission urged them to throw cash surpluses of around 1% of the Gross Domestic Product (GDP) or over Rs430 billion for fiscal year 2019-20, sources in the Finance Ministry told The Express Tribune. The demand has been made to keep the overall budget deficit below 5% of the GDP and project a primary fiscal balance.
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Re: Pakistani Economic Stress Watch

Postby A_Gupta » 06 May 2019 03:37

X-Posted to Terroristan thread:

http://www.asianews.it/news-en/Pakistan ... 46810.html
About Pakistan's economic crisis, Dr Kaiser Bengali, Dean of the Faculty of Management Science at the Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, in Karachi says "publishing houses are shutting down. We cannot print even Quran in our country”

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Re: Pakistani Economic Stress Watch

Postby menon s » 06 May 2019 11:45


Peregrine
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Pakistani Economic Stress Watch

Postby Peregrine » 06 May 2019 19:04

Economy in virtual control of IFIs: Dr Ashfaque

ISLAMABAD: After the virtual takeover of the country’s economy by the International Financial Institutions (IMF and World Bank), Pakistan has outsourced its policy-making to them.

In addition to Adviser on Finance, Revenue and Economic Affairs Dr Hafeez Shaikh, who is from the World Bank, other World Bank retirees hired by the Asian Development Bank are also being placed in the Ministry of Finance.

So much so the European Union has also joined hands to this effect and its candidates have also been placed in the ministry. More importantly, even the young non-cadre staff hired by these IFIs have been attached with the Prime Minister’s Office.

This has been disclosed by Dr Ashfaque Hasan Khan, member of the dysfunctional Economic Advisory Counciland Principal and Dean of Social Sciences and Humanities at the National University of Sciences and Technology (NUST), Islamabad.

Talking excessively to The News on Sunday, he opined that Prime Minister Imran Khan’s claim that people from abroad will get employed in Pakistan had turned true by handing the finance ministry over to Dr Hafeez Shaikh and State Bank of Pakistan (SBP) to Raza Baqar from the IMF.

He apprehended that Mr Baqar might bring few more economists from the IMF as his advisers. ‘So there is a virtual takeover of Pakistan’s economy by the IFIs.’ Now the new economic team, he said, coming from the IFIs will be negotiating the fate of Pakistani economy with their colleagues on the other side of the table which is indeed strange. He said there are news that IMF is asking for more increase in discount rate, downward adjustment in exchange rate, and hike in electricity and gas prices.

‘It is an undeniable fact that the present government has inherited economy which was never in such a bad shape in the history with over $19 billion current account deficit and over 7 percent budget deficit with low and declining resources.

The management of economy became a challenging task for the new government,’ said Dr Khan adding that Pakistan had two options either to go to IMF --- 22nd time in its history — or make an effort to live without the IMF clutches.

He was of opinion that Pakistan should learn to live without the IMF. His argument was based on the fact that Pakistan has been one of the prolonged users of the IMF resources as it has lived under 21 programmes since 1958 and 4 programme since 2000. And three out of four programs are fully completed, but the fourth one is suspended during the tenure of Dr Hafeez Shaikh who was the Finance Minister under Zardari regime from 2010 to 2013.

The last program (2013-16) was completed in August-September 2016. In fact, the IMF launched it report for the year 2018 in DEVOS and was upbeat on Pakistan. The report said: ‘’Pakistan can manage without IMF support.’’ It has all the praise for the then economic managers of Pakistan’s macro-economic stability and it is poised for higher economic growth.

Dr Khan expressed surprise saying that within two years of successful completion of IMF program that Pakistan had no option but to go to IMF once again. If a patient suffers a relapse so soon after remission Dr Ashfaque said we have every right to raise question about the authenticity of the claim on bill of health given by IMF after the so-called ‘successful completion’ in the first place. Since Pakistan is again going to the fold of IMF, Dr Khan said, it is legitimate to question the efficacy of the medicine given to the patient. Therefore, he raised the question that will the same medicine prove to be effective 22nd time or will history repeat itself or even worse. From the point of view of IMF, Dr Khan said, whenever a country faces balance of payment crisis it is because of the excessive demand prevailing in the economy. The IMF has standard prescriptions of the 1980s vintage of stabilization policy which is commonly known as demand management policy or austerity policy or anti-growth policy. “‘There are three key instruments of stabilization policy,” Dr Khan said, adding that these include 1) floating/flexible/ market based exchange rate policy; 2) tight fiscal policy and 3) monetary policy.

Eliminating all kinds of subsidies are part of tight fiscal policy. Floating exchange rate policy invariably leads to devaluation which is inflationary by definition as all the landed cost of the imported items in local currency increases and to encounter the inflationary pressure, the central bank immediately tightens the monetary policy by raising the discount rate which in turn increases the interest rate of economy. The higher interest rate discourages investment in the country. Tight fiscal policy on the other hands prevent the government to spend more.

Given the situation when in the interest payments, defence and running civil administration are on the higher side, Dr Khan said that the axe of spending cut falls invariably on the development expenditures. Therefore under the IMF program, the design of the policy is such that neither private sector nor public sector invest which results in leading to the decline in investment to GDP ratio. This means that slow investment slows the economy that fails to generate the jobs even for new entrants approximately 1.5 million each year. ‘So it gives rise to unemployment and poverty and becomes a fodder for socio-economic unrest in the country.’

Devolution on one hand increases the dollar dominated public debt in Rupee term which increases the overall public debt too. And tight monetary policy on the other hand raises the discount rate increases the financing cost—budget deficit which in turn increases the interest payments, current expenditures and total expenditures. And anti-growth policy leads to a slowdown in the economy that fails to give resources resulting it increases budget deficit. More borrowing and more accumulation of debt to finance the deficit becomes the recipe and in turn country enters into the vicious cycle.

“The bottom line is that IMF program will bring more harm than good to the economy and to the country,” Dr Khan said.

NOW THE PAIN BEGINS
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Pakistani Economic Stress Watch

Postby Peregrine » 07 May 2019 00:43

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