Pakistani Economic Stress Watch

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g.sarkar
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Re: Pakistani Economic Stress Watch

Postby g.sarkar » 27 Nov 2019 10:02

Vips wrote:
disha wrote:A couple of Porki economists (Ashfaq Hassan and one more with surname of Bangali) have been crying hoarse on puki talk show channels for nearly six months now that all the strategy that the ex world bank employees who are Finance Minister and chief of the Paki state bank have is to raise the interest rates so that foreign funds are parked in govt securities. These funds are hot money which will stay till they get high interest which no government can pay for long and will leave as soon as the interest rates go down and the country suffers another crisis.
Guess where this happened last - in Egypt where the same Porkis employed this strategy to get short lived kudos. :rotfl:

There are a number Pakis in you tube programs that are complaining that Pakistan has to pay such high rates of interest while Japan charges India only 0.1% interest rate for the bullet train. (Japan provided 30-year loans for the Delhi Metro project in 1997 at an interest rate of 2.3%, for example.) Pakistan has to pay far more. But the fact is there is no free lunch. The retirement funds for the karnails and jernails who retire to Australia and Canada cost money. The entire corrupt system has to be paid for and that does not come from printing Indian currency or drug money alone.That extra money comes from such high interest loans.
Gautam

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Re: Pakistani Economic Stress Watch

Postby Kashi » 27 Nov 2019 11:23

Japanese were willing to offer similar assistance for circular railway and a mass transit system for Kachda-on-sea, but Bakis in their infinite wisdom declined.

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Re: Pakistani Economic Stress Watch

Postby Vips » 27 Nov 2019 18:06

Peregrine wrote:Vips Ji :

You mean Kaiser Bengali?

Pakistan Rupee could touch 250 vis-a-vis dollar within a year: Noted economist
Kaiser Bengali has also described the China Pakistan Economic Corridor (CPEC) as a product of the new"East India company".
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Yes Sirji.

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Pakistani Economic Stress Watch

Postby Peregrine » 27 Nov 2019 18:28

S&P BSE SENSEX

Index Current : 41,058.90 - Pt. Change : +237.60 - % Change : +0.58

Market Capitalization of BSE Listed Co. (Rs.Cr.) : 1,54,74,191.57 - $ 1 / I N R = 71.3525

Market Capitalization of BSE Listed Co. (U S $.) : 2,168.70 Billion

P S E[/b]

Current Index : 38,122.72 – Change : 327.67: % Change : 0.86% - High : 38,122.72 – Low : 37,671.63

Market Capitalization of PSE Listed Co. (Rs.Tr.) : 7,301,417,282,897 - $ 1 / T R = 155.60

Market Capitalization of PSE Listed Co. (U S $.) : 46.92 Billion

B S E : P S E : : 46.22 : 1


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Re: Pakistani Economic Stress Watch

Postby disha » 28 Nov 2019 01:18

Peregrine wrote:Disha Ji :

Is the Interest Rate 13% the Rate Per Month or Per Annum?

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Peregrine'ji and others. A little bit of mea culpa. I had some pindi channa and hence the interest rate calculation instead of coming from the Endian end it came from the bakistani end.

Yes, the interest rate is 13+% per annum for a 3-month debt. So no, it is not 52% though I wish it was and I am suar that arrah will grant me such a wish. :D

Having said that, the debt is extremely short term and hence for speculation only. Similiar debt in US is at @1.5% now and @2.0% in September. Given that if I were a mutual fund manager with $1B in assets, it will be very easy to park $1 million in Baki short-term debt and $1+ million in US short-term (and other short term in between) and raise my ROI. If I had just $2million, I will do the above (assuming I am even attracted to Baki debt) and my average return will be @7.5% !!! with risk between Baki and US.

But for a bakistani, this is a disaster. Since this is not investment money. This is not any money to build bullet train. This cannot be used even for bullock cart train. All it does is allow Bakistanis to live one-more day. A sure hand-to-mouth existence.

For 'west', this is a manna from heaven. A beggared nation on dole. A total colonial country paying into the master's coffers. And risk is of a few fractional billion dollars only (ratio of US GDP to Baki GDP in dollar terms is some 10000x).

Now you see why Bakistan has 3.5 fathers!

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Re: Pakistani Economic Stress Watch

Postby Gerard » 28 Nov 2019 06:38

$787m loan agreements signed with World Bank
ISLAMABAD: Pakistan and the World Bank on Tuesday signed five loan agreements of $787 million for development projects, majority of them for Karachi uplift.

The agreements were signed by Economic Affairs Division secretary Noor Ahmed, World Bank’s country director in Islamabad Patchamuthu Illangovan and the representatives of governments of Sindh and Khyber Pakhtunkhwa and the National Transmission and Dispatch Company Ltd. Minister for Economic Affairs Hammad Azhar witnessed the signing ceremony.

The World Bank will provide $652m for three development projects in Karachi to support urban mobility, urban management and service delivery, improve water and sewerage services, tourism and power sectors.

The first loan of $382m was inked for Karachi Mobility (Yellow Line) Project that is expected to improve mobility, accessibility and safety along the yellow line Bus Rapid Transit (BRT) corridor in Karachi. The project will help to develop urban road infrastructure (Yellow Corridor), rehabilitation or reconstruction of road infrastructure along the yellow corridor, development and operationalisation of a BRT system and capacity building.

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Pakistani Economic Stress Watch

Postby Peregrine » 28 Nov 2019 19:58

S&P BSE SENSEX

Index Current : 41,130.17 - Pt. Change : +109.56 - % Change : +0.27

Market Capitalization of BSE Listed Co. (Rs.Cr.) : 1,55,57,484.15 - $ 1 / I N R = 71.75

Market Capitalization of BSE Listed Co. (U S $.) : 2,168.29 Billion

P S E

Current Index : 38,706.27 – Change : 583.55 - % Change : 1.51% - High ; 38,847.19 – Low : 38,122.72

Market Capitalization of PSE Listed Co. (Rs.Tr.) : 7,402.976,212,786 - $ 1 / T R = : 155.60

Market Capitalization of PSE Listed Co. (U S $.) : 47.58 Billion

B S E : P S E : : 45.57 : 1


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Re: Pakistani Economic Stress Watch

Postby Rsatchi » 29 Nov 2019 01:05

https://www.dawn.com/news/1519335/saudi ... t-in-india
This is causing serious takleef in pureland

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Pakistani Economic Stress Watch

Postby Peregrine » 29 Nov 2019 04:12

Peregrine wrote:Disha Ji :
Is the Interest Rate 13% the Rate Per Month or Per Annum?
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disha wrote:Peregrine'ji and others. A little bit of mea culpa. I had some pindi channa and hence the interest rate calculation instead of coming from the Endian end it came from the bakistani end.
.
Now you see why Bakistan has 3.5 fathers!
Disha Ji :

So if Terroristan can have 1.5 Fathers more then would I be right in assuming that Terroristan will get 42% MORE ALMS?
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Pakistani Economic Stress Watch

Postby Peregrine » 29 Nov 2019 04:56

Kashi wrote:Japanese were willing to offer similar assistance for circular railway and a mass transit system for Kachda-on-sea, but Bakis in their infinite wisdom declined.
Kashi Ji :

I believe the Japanese are rather tough on Accountability.
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Pakistani Economic Stress Watch

Postby Peregrine » 29 Nov 2019 16:41

Power tariff raised to meet IMF target - Khaleeq Kiani
ISLAMABAD: To meet another target before a mee­ting of the executive board of the International Mone­tary Fund (IMF), the government on Thursday app­roved an increase of 26 paisa per unit in electricity tariff, instead of 15 paisa allowed by the power regulator.
This decision was made at a meeting of the Economic Coordination Committee (ECC) of the Cabinet that also further increased wheat support price by Rs15 per 40kg to Rs1,365 and exempted two LNG-based power projects in Punjab from ‘guaranteed take or pay’ of 66 per cent gas quantities to facilitate their privatisation that may add a minimum of Rs117bn subsidy to the budget.
The ECC meeting was presided over by the Prime Minister’s Adviser on Finance & Revenue Dr Abdul Hafeez Shaikh.
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Re: Pakistani Economic Stress Watch

Postby neeraj » 29 Nov 2019 19:22

Collapse of Pakistan GDP Begins, woman wears Rs. 400/kg tomatoes as gold | NewsX
https://www.youtube.com/watch?v=vsQynPTC-t8

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Pakistani Economic Stress Watch

Postby Peregrine » 30 Nov 2019 12:42

Tax revenue shortfall widens to Rs218b - Shahbaz Rana
ISLAMABAD: The shortfall in tax revenue has widened to a whopping Rs218 billion in just five months of this fiscal year which has again raised prospects of a mini-budget after the rejection by the International Monetary Fund (IMF) of Pakistan’s request for the downward revision of the annual target.
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Pakistani Economic Stress Watch

Postby Peregrine » 30 Nov 2019 13:38

Mods : Please Transfer this to the appropriate Thread. I have posted it in Full as the Article is "guarded" by a PAYWALL.

X Posted on the Indian Economy News & Discussion Thread

The rise and rise of India as an economic powerhouse

Sitting in one of India’s seemingly endless traffic jams, breathing its often choking air, it’s difficult to see how this nation of 1.3 billion will solve its own problems, let alone present an alternative to China as a global economic powerhouse.

But it’s this crush of humanity, and the ambition it instills in its youthful population, that makes India such a compelling economic partner. As the world’s biggest democracy, India also has a strong commitment to the global rules-based order, making it an ideal strategic partner for Western nations as authoritarian China flexes its muscles.

Scale and shared values are India’s great advantages, and at the heart of Scott Morrison’s push towards closer ties with New Delhi.

In a major foreign policy speech last month, the Prime Minister described India as “a great success story of our region”, and “a natural partner for Australia”.

Morrison will seek to turbocharge this relationship in January when he travels to India at the invitation of his charismatic and politically savvy counterpart, Narendra Modi.

Preparations for the visit have been under way for months, with Australia hoping to secure economic and strategic agreements, which will begin the long process of lessening the nation’s economic dependency on China, and strengthening the West’s response to Beijing’s technological and military posturing.

The next China?

Morrison will not present engagement with India and China as a “binary choice” that Australia must make, in the same way he argues Australia doesn’t need to choose between the US and the People’s Republic of China.

But Tony Abbott, with all the frankness of a former prime minister, suggested during a visit to India last week that’s what Australia should aim for. Abbott declared in New Delhi that India “could be the next China” and urged Morrison to help create a new democratic global superpower less politically overbearing than the communist giant.

He said policymakers had neglected engagement with India by putting “too many eggs into the China basket”, arguing it would be easier to develop a “deep commitment” across the board with India.

Former Department of Foreign Affairs and Trade secretary Peter Varghese says in his landmark 2018 India Economic Strategy that there is “no market over the next 20 years which offers more growth opportunities for Australian business than India”.

Varghese says Australia’s flagship education sector, together with agribusiness, resources and tourism, will be at the forefront of a new economic partnership with India. Energy, infrastructure, financial services and innovation also offer promising opportunities, he says.

By 2035, India will overtake China as the most populous nation and is likely to become the third largest economy, after China and the US.

Varghese predicts India’s economy will continue to grow at 6 per cent to 8 per cent a year for the next 20 years. But he also cautions against India “boosterism”, and disagrees with Abbott’s “next China” analysis.

“No Indian government will be able to direct the economy in the way China does,” he says. “Nor will it ever have the control over the allocation of resources, which has been intrinsic to China’s economic success.

“We need to navigate between the hype that India is the next China and the outdated pessimism that India is just too hard.”

Australian exports to China last year were worth $118bn — more than 10 times the value of Australian goods and services purchased by India, at $16.7bn.

Australian companies and financial institutions had more than $75bn invested in the Chinese economy last year, but only $15.5bn invested in India.

The stark economic numbers suggest that for Australia there will be no Donald Trump-style “decoupling” from China in favour of India.

Untapped opportunity

But there is no doubt that India — fastest growing large economy — presents an enormous and largely untapped opportunity that Australia can no longer ignore. Its potential as a security partner in the increasingly contested Indo-Pacific also is energising the Australian government, together with policymakers in Washington and Tokyo.

A decade after Kevin Rudd withdrew Australia from the Quadrilateral Security Dialogue to appease Beijing, the informal security grouping bringing together the US, Japan, Australia and India is back on track.

Former Labor foreign minister Stephen Smith announced in 2008 that Australia would quit the Quad, admitting it had “caused China concern”, and Australia “would not be proposing to have a dialogue of that nature” again.

The decision hobbled the nascent security dialogue, conceived by Japanese Prime Minister Shinzo Abe as an “Asian arc of democracy”, and left Indian strategists questioning Australia’s reliability.

The Quad was revived and elevated in September with its first ministerial meeting, on the sidelines of the UN General Assembly, after years of official-level talks.

Foreign Minister Marise Payne said she and her US, Japanese and Indian counterparts discussed “efforts to maintain and promote an open, prosperous and inclusive Indo-Pacific” — code for countering bad behaviour by China.

Scott Morrison with Indian Prime Minister Narendra Modi in Osaka, Japan, in June. Picture: AAP
In April, Australian and Indian ships conducted a third bilateral naval exercise, AUSINDEX, in the Bay of Bengal, focusing on anti-submarine warfare.

Australia contributed the landing helicopter dock HMAS Canberra, two frigates and a Collins-class submarine, its largest contingent for an exercise in those waters.

The Australian government will be hoping to ramp up such military co-operation, including possible participation in Operation Malabar exercises with the US and Indian navies.

Morrison also is determined to use his upcoming trip to strike new strategic agreements on the development of critical technologies — artificial intelligence, quantum computing and 5G — and critical minerals such as rare earths and lithium.

Initial talks have occurred between Australian and Indian officials on a plan to combine Australian research expertise with India’s ability to apply new technologies on a colossal scale.

It’s hoped the collaboration will enable Western nations, rather than China, to set the technical standards around the technologies that will underpin economic and military development for decades to come.

The 2019 Global Innovation Index, co-published by Cornell University, INSEAD business school and the World Intellectual Property Organisation, placed India in 51st place in its global league table of the most innovative nations. Australia came in at 22, China at 14 and the US third, after Switzerland and Sweden.

Tech hub

But India is undeniably a hub of technology expertise, particularly in the IT services sector.

Companies such as Tata Consultancy Services, Infosys and Wipro have combined India’s strengths — cheap, English-speaking labour and quality technical education — to help companies around the world improve their business processes with AI and machine learning and armies of coders.

The Australian recently toured Infosys’s Bangalore technology hub — a vast Google-like campus that runs 24 hours a day supporting some of the world’s biggest companies. Employees use company bicycles to get around, eat wholesome food, and play tennis during their breaks.

The $40bn company, whose founders started in 1981 with a $US250 loan from their spouses, entered the Australian market in 1999. Now its Australian operation has about 5000 employees and pulls in about $1.47bn in revenue.

“India missed the manufacturing revolution but was able to take advantage of the services revolution,” company chief operating officer Pravin Rao says.

But capacity constraints continue to crimp the country’s potential. The county’s renowned Indian Institutes of Technology are harder to gain entry to than Oxford. This year one million students applied for an IIT position but only 9784 gained entry.

Grasping growth story

Although China has presented a difficult business environment for Australian investors through the years — particularly for companies forced to hand over their intellectual property — Australian companies have grown used to doing business in the Chinese market.

India is an altogether different prospect. While it has a strong and familiar legal framework, it has been a prodigious generator of investor red tape. India’s bureaucracy is famously stultifying, and its polluted cities are clogged with traffic. In the World Bank’s latest “ease of doing business” ranking, released last month, India took 63rd position — up 14 places. China came in at 31 and Australia at 14. But with an average age of 27 — a decade younger than China’s — India is young and hungry.

Varghese lamented at a recent forum in New Delhi that Australia’s “big end of town” had yet to grasp India’s growth potential, saying there would be significant benefits for those who got in early.

“There is less of an appreciation of what is happening in India in the Australian corporate sector, and less of an understanding of what these long-term trends in the Indian economy add up to,” he says.

However, some Australian investors are beginning to see value in India’s growth story, with the nation’s biggest retirement fund, AustralianSuper, sinking up to $1.47bn into the Mumbai-based National Investment and Infrastructure Fund.

Macquarie Group also is betting big on India, winning a $2.2bn contract to operate 680km of the country’s national highways for the next 30 years.

Energy demand

India won’t reach its development potential without access to more energy, providing a significant opportunity for Australia.

India’s electricity demand has tripled since 2000 and is expected to rise by at least 5 per cent a year to 2035 and beyond. About 280 million Indians have no access to reliable electricity, which contributes to the nation’s staggeringly low average per capita energy use of about 800 kilowatt hours a year. The world average is 3600kWh, while Australian consumers use about 10,000kWh a year.

The International Energy Agency predicts India’s thermal coal consumption will continue to grow and soon will overtake China as the biggest coal importer.

And while Adani’s Carmichael coalmine, in central Queensland, became a lightning rod for environmental protesters, few realise the Indian firm is also on its way to becoming one of the world’s biggest renewable energy companies.

It has nearly 5000 megawatts of installed or under-construction renewables, and plans to expand its solar and wind capacity to 20,000MW by 2025.

Adani family scion Karan Adani says new coal and renewables plants need to be rolled out in tandem across the country to ensure network reliability.

“The underlying stable network of the country can only rely on non-renewable sources,” he says. “And for us the cheapest source is coal.”

Varghese says Indian demand for Australian coking coal also will surge when the country’s steel production ramps up.

Australia was disappointed when India opted to remain out of the Regional Comprehensive Economic Partnership — a proposed 16-nation trade deal that would have covered 3.4 billion people with a combined gross domestic product of $US49.5 trillion ($72.8 trillion).

But Modi’s decision to stay out of RCEP was driven by domestic politics, amid fears the deal would expose the nation’s farmers and small businesses to cheap imports.

Former Indian diplomat Anil Wadhwa, who is writing the Indian government’s response to the Varghese report, says India’s decision to stay out of RCEP offers “a great opportunity” for a fresh look at a bilateral trade deal with Australia.

Australia and India began negotiations on an economic co-operation agreement in 2011, but the talks stalled in 2015 amid difficulties over agriculture and services market access.

Wadhwa says freer access to Australia for skilled Indian workers will be one of India’s top priorities when considering closer economic ties, suggesting Indian doctors, nurses, infrastructure specialists and security guards could “fill the gaps” in the Australian labour market.

Wadhwa’s draft report identifies acquisition of Australian agritech companies, cotton farms and food companies as key investment opportunities for India, and says India can benefit from Australian expertise in renewable energy and electricity grid technology.

The report, scheduled for release during Morrison’s visit, says it is “imperative” that India focus on Australia to meet its future minerals needs, and that a new port on the country’s east coast offers opportunities to boost imports of Australian liquefied natural gas.

Billionaire Anand Mahindra, the head of one of India’s most successful companies, says the Australia-India relationship inevitably will grow amid rising international concerns over China’s behaviour in the world.

The Mahindra Group executive chairman says the long-running unrest in Hong Kong illustrates “starkly what the differences are” between India and China.

“We may not look the same but the fact is that as far as what we feel about freedom, and about democracy and its principles, are identical. I think that is the bedrock of trust,”
he says.

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Pakistani Economic Stress Watch

Postby Peregrine » 01 Dec 2019 14:57

TERRORISTAN IS NOW ALSO DEBTISTAN!

The debt bomb

From 1947 to 2008: over the 61-year period we had four governor-generals, nine presidents and twenty-three prime ministers. All of them put together managed to accumulate a mere Rs6 trillion in debt. In 2008, our per capita debt stood at Rs36,000.

2008-13: Over the five-year period we had Asif Ali Zardari as president and two prime ministers – Yousaf Raza Gilani and Raja Pervez Ashraf. The three of them managed to take our debt from Rs6 trillion to Rs16 trillion. Over the five-year period we added a colossal Rs10 trillion worth of debt. Over the five-year period, on average, we were taking on Rs5.5 billion worth of debt every single day.

Over the 5-year period, the PPP government increased our per capita debt from Rs36,000 to Rs88,000. Imagine: it took us 61 years to accumulate Rs36,000 worth of debt on a per capita basis but a mere five years to more than double it to Rs88,000.

2013-2018: Over the 5-year period we had Mamnoon Hussain as president and two prime ministers – Mian Nawaz Sharif and Shahid Khaqan Abbasi. The three of them managed to take our debt from Rs16 trillion to Rs30 trillion. Over the five-year period we added a colossal Rs14 trillion worth of debt. Over the five-year period, on average, we were taking on Rs7.5 billion worth of debt every single day.

Over the five-year period, the PML-N government increased our per capita debt from Rs88,000 to Rs144,000.

2018-2019: over the one year period we had Dr Arif Alvi as president and Imran Khan as prime minister. The two of them have managed to take our debt from Rs30 trillion to Rs41 trillion. Over the one year period we have added a colossal Rs11 trillion worth of debt. Over the one year period, on average, we have taken on Rs30 billion worth of debt every single day. Imagine: we accumulated Rs30 trillion worth of debt in 71 years and an additional Rs11 trillion just in one year.

Over the one year period, the PTI government has managed to increase our per capita debt from Rs144,000 to Rs187,000. Alarmingly, debt taken on over a 71-year period now comprises 73 percent of our total debt and debt taken on over the past year now comprises 27 percent of our total debt.

The PTI’s mathematicians claim that they have taken on debt to pay off previous debt. Al-Khwarizmi, the Muslim mathematician during the Golden Age of Islam, is puzzled: if you have paid off previous debt then the final figure should be lower not higher. How come it is Rs11 trillion higher?

To be certain, PTI has simply taken on Rs11 trillion worth of additional debt. Yes, there is an element of devaluation in it but the same element of devaluation is present in all the previous calculations as well. We must compare apples with apples.

In 1971, every Pakistani man, woman and child owed Rs500. The same has since gone up to Rs187,00 in 48 years. Excessive public debt means higher rates of interest and a higher risk perception. A higher risk perception means investors will not invest or will demand a higher rate of return. All that means is little or no economic growth. Yes, excessive public debt is like “driving a car with the emergency brake on”.

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Re: Pakistani Economic Stress Watch

Postby souravB » 02 Dec 2019 15:47

^^So basically East Pakistan was the golden bird for Paxtan. After 1971 it flew away along with the gold. great.

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Re: Pakistani Economic Stress Watch

Postby yensoy » 02 Dec 2019 17:46

souravB wrote:^^So basically East Pakistan was the golden bird for Paxtan. After 1971 it flew away along with the gold. great.


If the population controlling a huge landmass blessed with perennial rivers, relatively mild climate, great topography and a long seashore has to depend on an overpopulated flood zone one third its size, then there is something seriously wrong with the former and something of value in the people of the latter.

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Pakistani Economic Stress Watch

Postby Peregrine » 03 Dec 2019 23:38

S&P BSE SENSEX

Index Current : 40,675.45 - Pt. Change : -126.72 - % Change : -0.31

Market Capitalization of BSE Listed Co. (Rs.Cr.) : 1,53,49,933.90 - $ 1 / I N R = 71.8350

Market Capitalization of BSE Listed Co. (U S $.) : 2,136.53 Billon

P S E

Current Index : 39,788.73 – Change : -335.49 - % Change : -0.84% - High : 40,444.05 - Low : 39,725.70

Market Capitalization of BSE Listed Co. (Rs.Tr.) : 7,582.936,873,090 - $ 1 = T R 155.4448

Market Capitalization of BSE Listed Co. (U S $.) : 48.78 Billion

B S E : P S E : : 43.80 : 1


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Pakistani Economic Stress Watch

Postby Peregrine » 04 Dec 2019 00:21

Australia to end bilateral aid to Pakistan

ISLAMABAD: The Morrison government will cease all bilateral aid to Pakistan, which includes support for successful programmes helping poor women and girls, as funds for development assistance are diverted to the Pacific.

According to the ‘The Sydney Morning Herald’, Australia has a 70-year history of providing aid to Pakistan but will end all government-to-government development assistance in 2020-21, the latest aid programme performance report on Pakistan reveals.

“Funding in Australia’s overall aid programme has been redirected to support new initiatives in our immediate Pacific region,” it said. “This has reduced bilateral aid to Pakistan from $39.2 million in 2018-19 to $19 million in 2019-20 and funding for bilateral programmes will fully cease in 2020-21.”

A key objective of Australia’s aid to Pakistan has been assisting women and girls with a focus on education, increased access to quality reproductive health and gender-based anti-violence services.

Pakistan is one of the poorest countries in Asia and was placed 150 out of 178 nations on the most recent United Nations Human Development Index, which ranks countries according to health, education and income.

Australia’s overall foreign aid budget has been slashed by 27 per cent in real terms since 2013 and now makes up just 0.82 per cent of federal government spending, an all-time low.

Despite those cuts, the Morrison government has pledged an Australian “step-up” in the Pacific and aid spending in that region was lifted to a record $1.4 billion in 2019-20. The policy shift came amid fears of growingChinese influence on Australia's doorstep.

Professor Stephen Howes, an expert on Australia’s aid programme at the Australian National University, said it was a “national embarrassment” that aid was being funnelled to the Pacific at the expense of effective development programmes in Pakistan. “No one could plausibly claim the need in the Pacific is greater than the need in Pakistan,” he said.

Last financial year Australia's aid to Pakistan provided food and cash transfers to over two million poor people affected by drought and internal displacement. It supported a further 1.2 million people in disadvantaged regions, helping them to gain access to justice, public services and business grants.

The government's decision to end bilateral aid to Pakistan is a marked shift from its priorities in 2015, when an official aid investment plan said Australia has “strong interests” in Pakistan because of its size and strategic position in the South Asia region.

The Morrison government’s aid budget summary released in April said “gender disparities are stark” in Pakistan and noted that "nine in 10 Pakistani women experience violence in their lifetime, among the world’s highest rates of gender-based violence."

Pakistan will continue to receive a small amount of Australian aid through "regionally and globally funded programs" such as scholarships to study at Australian universities. A spokesman for the Department of Foreign Affairs and Trade said Australia "will continue to work with Pakistan on areas of shared interest, including through trade and investment, community links, defence cooperation, human rights and gender equality, and regional security.”

While government to government aid will cease, Pakistan will continue to receive some Australian humanitarian and "regional" funding such as scholarships for study in Australia. This will total approximately $13.5 million in 2020-21.

Tim Costello, executive director of aid advocacy group Micah Australia, said the Morrison government was abandoning Pakistan. “We support the Pacific step-up but that should not come at the cost of aid to Pakistan,” he said. “Apart from lacking any humanitarian heart it is foolish in security terms.”

Australia’s bilateral development assistance to Pakistan peaked at $70 million in 2009 when the Rudd government was in office. Pakistan's neighbour Nepal has also been hit by cuts to Australia's aid. Bilateral assistance to Nepal will be 42 per cent lower in 2019-20 than the previous year.

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Re: Pakistani Economic Stress Watch

Postby VinodTK » 04 Dec 2019 03:58

Pakistani tycoon agrees to hand over $244 million to settle UK probe
LONDON (Reuters) - The Pakistani real estate tycoon Malik Riaz Hussain has agreed to hand over 190 million pounds ($244 million) held in Britain to settle a British investigation into whether the money was from the proceeds of crime.

Hussain is one of Pakistan's richest and most powerful businessmen and biggest private employers, and is known for upmarket gated housing communities. He has been caught up in corruption investigations but also supports charitable causes.

Britain's National Crime Agency (NCA) said it had agreed a settlement in which Hussain would hand over a property, 1 Hyde Park Place, valued at 50 million pounds, and cash frozen in British bank accounts.

The NCA had previously secured nine freezing orders covering 140 million pounds in the accounts on the grounds that the money may have been acquired illegally.

The agency said the assets would be passed to the government of Pakistan and the settlement with Hussain was "a civil matter, and does not represent a finding of guilt".

Hussain quoted this line in a tweet and also tweeted the NCA statement.

"Some habituals are twisting the NCA report 180 degrees to throw mud at me," he added.

The settlement rekindles hopes for Pakistani Prime Minister Imran Khan's anti-corruption drive, which has so far failed to bring back the billions of dollars that his government says opposition politicians have stashed abroad.

Kashi
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Re: Pakistani Economic Stress Watch

Postby Kashi » 04 Dec 2019 08:28

souravB wrote:^^So basically East Pakistan was the golden bird for Paxtan. After 1971 it flew away along with the gold. great.


I'll dig out one of my old posts on this subject

viewtopic.php?f=1&t=7656&p=2288730&hilit=bangladesh#p2288730

24 years of exploitation created Bangladesh

While Nawaz Sharif may not be Sadiq or Amin, he wasn’t wrong when he said that Pakistan ought to do some soul searching about the secession of East Pakistan and the creation of Bangladesh. However, instead of reflecting, many jingoists pounced on him in the media. One senior PPP leader stood out in particular for his outrage about Nawaz’s claim that Mujeebur Rehman was forced to launch a liberation movement because of the follies of West Pakistan’s leadership.

At the cost of repeating myself, and perhaps also angering more hyper-nationalists, I am going to defend Nawaz’s statement. It is high time that this country face the truth, no matter how bitter it is.

The creation of Bangladesh was not the result of those crucial eight months when a military operation was launched in East Pakistan. It was a long term consequence of all the wrongs done to East Pakistan by West Pakistan’s ruling classes, which treated the East like a colony. It was a liberation movement which was supported by the Indian government, because they finally had a chance to show the world the Two Nation Theory’s fragility.

Soon after Pakistan was established, the leaders of the Muslim League, led by Prime Minister Liaquat Ali Khan thought it appropriate to impose Urdu as the only national language in February 1948. Mohammed Ali Jinnah jumped into this debate on March 21, stating that Bengali can be the language of the Province, but said “let me make it clear to you that the state language of Pakistan is going to be Urdu and no other language”. This was not acceptable to the Bengalis because they would have been placed in a disadvantageous position in competition with the Punjabi and Mohajir west Pakistanis, who had a better understanding and command of Urdu.

After giving the East Bengalis a ‘Shaheed Minar’, it was finally agreed in the third draft of the Constitution in 1954 that Bengali and Urdu would be the official languages of the country. ‘At the same time it provided for the use of English as the “official language of the country for twenty years.” (Mehrunnisa Ali 1966)

But it was an expensive tradeoff for the Bengalis as they had to accept the perfidious idea of ‘One Unit’, thereby giving away their majority in the assembly. Not only that, once all of West Pakistan was declared one province, what was called East Bengal in official documents until 1954 was renamed East Pakistan.

Now let us take a cursory look at a few disparities: the total government expenditure between 1950 and 1970 in Pakistan was $30.95 billion, out of which West Pakistan extracted the lion’s share of $21.49 billion. Meaning over 69 percent, while East Pakistan, despite having 55 percent of the country’s total population, was only given a measly $9.45 billion, which was just 30.45 per cent of the total.

This distribution of resources was in sharp contrast to the income generated by East and West Pakistan. All through Pakistan’s initial 24 years, East Pakistan had enjoyed a foreign trade surplus. In a paper Why Bangladesh, a group of scholars in Vienna collected data from the government of Pakistan’s official papers showing how East Pakistan was exploited by West Pakistan. Taking stock of the foreign trade they pointed out: ‘In foreign trade East Pakistan exports constituted 59 percent of the total but imports only 30 percent of the total imports… During the same period West Pakistan earned 41 percent of the total foreign exchange and was allowed 70 percent of the foreign exchange earnings’.

While the surplus generated by East Pakistan was invested in the infrastructure and industry of West Pakistan, it was a secured market for West Pakistani goods. Between 1964 and 1969, West Pakistan exported goods worth Rs 5.29 billion to East Pakistan, while it imported goods worth Rs 3.17 billion.

Of the total foreign assistance, almost 80 percent was consumed by West Pakistan. On the whole, again according to the Vienna Group, 77 percent of the funds allocated for development went to West Pakistan in the first 20 years. Not only were all the major investments in the jute and paper industry in East Pakistan owned by the big business houses of West Pakistan, East Pakistan was their undisputed market of over 50 million people. It was because of the loss of this colony that Pakistan had to devalue its currency by 135 percent in 1972 and its textile and consumer industry had a great fall.

The East Bengal middle classes were also bitter because of their meagre share in government services. For example, by 1971 the share of 54 percent of East Pakistan’s Bengalis in the central civil services was 16 percent; in foreign services, 15 percent; in the army, out of 17 generals, there was only one Bengali. And in the PIA, only 280 employees were from East Pakistan opposed to 7000 from West Pakistan.

Keeping all these factors in mind, how can Nawaz be blamed for calling for introspection about the Bangladesh issue. It is indeed a good sign that a leader hailing from Punjab is raising these issues which used to be taboos for the Panjabi establishment.

The Germans have not only apologised to the Jews and the communists who were killed by the Nazi government during the Third Reich, they have museums to tell future generations what they did wrong. Can we summon the righteousness needed to apologise for the wrongs done to East Bengal and move on instead of living in our cocoon, believing that it was an Indian conspiracy?

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Re: Pakistani Economic Stress Watch

Postby Aditya_V » 04 Dec 2019 10:58

It is clear Pakistan was created for Pakjabis by the British to thier loyal and Martial Pakjabis- any Hindu elite in Lahore like Thapar etc were put into plush positions in New Delhi- so Lahore Hindu elite could forgive partition. Partition was not for the benefits of the Muslims as a whole- this fact needs to be put in everyones heads, thats why Pakjab is exploiting Pathans, Balauchis, POK and Sindh as a colony today .

Therefore as a Human in the interest of Human rights , Pakistan must be ssplit with Pakjab being made separate.

Similarly, the Sikhs are being denied thier Holy places like Lahore, Kartrapur, Nanakana Sahib, Toba Tej Singh etc... A Khalistan starting ~30Km west of Amritsar must be carved out of West Pakistan with those who meat other than Jatka which is required by the Sikh religion must immediately leave.

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Re: Pakistani Economic Stress Watch

Postby Gerard » 04 Dec 2019 16:45


Peregrine
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Pakistani Economic Stress Watch

Postby Peregrine » 04 Dec 2019 19:03

blames price hike on trade ban with India, weather - Khaleeq Kiani
ISLAMABAD: Attributing the prevailing price hike to suspension of trade with India, failure of provinces in keeping administrative control over the middleman and seasonal factors, the government’s economic team has forecast easing out the inflationary pressure in the next two months.
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Pakistani Economic Stress Watch

Postby Peregrine » 04 Dec 2019 19:26

S&P BSE SENSEX

Index Current : 40,850.29 - Pt. Change : +174.84 - % Change : +0.43

Market Capitalization of BSE Listed Co. (Rs.Cr.) : 1,54,12,460.38 - $ 1 / I N R = 71.6775

Market Capitalization of BSE Listed Co. (U S $.) : 2,150.06 Billion

P S E

Current Index : 40,270.52 – Change : 481.79 – % Change : 1.2% - High : 40,306.55 – Low :39,659.43

Market Capitalization of PSE Listed Co. (Rs.Tr.) : 7,665.271,188,393 - $ 1 / T R = 155.3517

Market Capitalization of PSE Listed Co. (U S $.) : 49.34 Billion

B S E : P S E : : 43.58 : 1


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Pakistani Economic Stress Watch

Postby Peregrine » 04 Dec 2019 20:50

Govt asked to write off NHA’s Rs1.8tr liabilities - Zafar Bhutta
ISLAMABAD: As many Public Sector Development Programme (PSDP)-funded projects are undertaken on political considerations leading to the piling up of public debt, the Communication Division has approached the federal government, asking it to write off over Rs1.8 trillion worth of liabilities due to be paid by the National Highway Authority (NHA)
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Pakistani Economic Stress Watch

Postby Peregrine » 05 Dec 2019 16:22

पाकस्थानी उज्ज्वल आर्थिक भविष्य - Pakistani Bright Economic Future!

Borrowing soars to $10.4b in PTI’s first year in power - Shahbaz Rana

ISLAMABAD: Prime Minister Imran Khan’s government took $10.4 billion worth of foreign loans in its first year in power and 46% of these were short-term expensive commercial lending, secured at up to 5.5% interest rate.

The most expensive commercial loans were obtained from Chinese banks that were contracted at six-month Shanghai Interbank Offered Rate (Shibor) plus 2.5%, according to the information that the Pakistan Tehreek-e-Insaf (PTI) government on Wednesday submitted before the National Assembly.

However, Chinese commercial loans were secured for two to three years period while the European and Gulf-based commercial banks provided loans for one year.

The six-month Shibor rate was 3%, translating the total interest rate cost to 5.5%. The Economic Affairs Division tabled the details in response to a question raised by the Pakistan Muslim League-Nawaz (PML-N) Member National Assembly Muhammad Afzal Khokhar.

Pakistan took the International Monetary Fund (IMF) loan at interest rate of 4%, according to the fresh details – the cost that was higher than the 3% rate earlier reported by the Ministry of Finance.

These foreign loans were obtained from August 2018 to September 30, 2019. The $10.4 billion loans are exclusive of disbursements by China, United Arab Emirates and Qatar. The loans from these countries are not booked on the books of the federal government. All these loans have been obtained to stabilise foreign exchange reserves, finance the development projects and repay the maturing foreign loans.

Before coming into power Prime Minister Imran Khan was very critical about taking foreign loans. But after coming into power, the premier is implementing the same policies, which were applied by the PML-N government to temporarily inflate foreign exchange reserve, like the foreign commercial loans.

The PTI government obtained loans of $10.4 billion from various countries and organisations from August 18 to September 30, 2019, according to the official statistics. Out of the $10.4 billion, the PTI government took $4.8 billion from seven commercial banks, which were equal to 46% of the total borrowings.

Commercial loans

From August 2018 to September 2019, the PTI government took $4.8 billion worth of foreign commercial loans, according to the EAD. The government took $365 million loan from the Ajman Bank at 3-month London Interbank Offered Rate (Libor) plus 3.44%, which was equal to 5.36% interest rate.

The government took another $2.235 billion from three Chinese banks at an interest rate of six-month Shibor plus 2.5% for a period of three years. It also obtained $300 million from another Chinese bank at three-month Libor plus 3.25%, according to the EAD.

Pakistan obtained $150 million from Citi Bank at around 5.3% interest rate for one year, $560 million from Noor Bank and Dubai Islamic Bank at 5.1% interest rate for one year, $195 million from Dubai Islamic Bank at 5.12% interest rate for one year, $500 million from Emirates NBD bank for one year at 5.27% interest rate and $650 million from Credit Suisse for one year at around 5.27% interest rate for one year too.

The Libor and Shibor based rates have been converted on the prevailing rate on Wednesday. The cost may slightly go either up or down, depending upon movement of interest rates.

Bilateral loans

The PTI government took $1.8 billion loans from the bilateral creditors in its first year in power, according to the EAD. It obtained $1.53 billion loan from China at various interest rates and maturity period. The $1.3 billion loan was obtained for a period of 20 years at interest rate of 2%. The repayments of these loans would begin after five to seven years.

China also extended $182.4 million loan at 5.2% interest rate for a period of 12 years. Beijing gave $14.4 million interest free loan for 20 years. France gave $68.6 million loan for 15 to 20 years at around 3% interest rate.

The cheapest loan of $62.5 million was given by Japan for a period of up to 40 years at very low interest rates. Saudi Arabia gave $10 million at 2% interest rate for 20 years and $141.7 million at 3.8% interest rate for 2 years. The two-year loan is probably under the oil financing facility.

Multilateral loans

The share of the multilateral lending stood at $2.8 billion or slightly above one-fourth of the total loans obtained by the PTI government in its first year in power. The World Bank gave $556 million concessional loan for up to 30 years at interest rates ranging from 2% to 3.4%.

The Islamic Development Bank gave $922.8 million loan at interest rates ranging from 2.5% to 4.7%.

Parliamentary Secretary for Finance Makhdoom Zain Hussain Qureshi told the National Assembly that the official foreign exchange reserves that stood at $8.9 billion as of November 26 2019, have slipped to $7.9 billion this week after the government paid $1 billion Sukuk bonds.

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Pakistani Economic Stress Watch

Postby Peregrine » 05 Dec 2019 16:55

Inflation surges to nine-year high - Mubarak Zeb Khan
ISLAMABAD: Inflation rose to 12.7 per cent year-on-year, the highest level in nine years mainly driven by an increase in prices of food items, the Pakistan Bureau of Statistics (PBS) reported on Wednesday.
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