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Pakistani Economic Stress Watch

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Falijee
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Re: Pakistani Economic Stress Watch

Postby Falijee » 21 Nov 2016 17:21

Pakistan's fuel reserves fall below strategic levels

Blame put on high demand, lack of storage capacity and port congestion :roll:


So, now Pakistan's rise towards a economic mini superpower has now been delayed for another 200 years ? :rotfl:

Real reason (lack of funds) probably not cited for " Honour and Dignity " AKA H&D ! :mrgreen:

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Re: Pakistani Economic Stress Watch

Postby anupmisra » 21 Nov 2016 18:04

Chinese company to lift garbage in Karachi
It's free....Hail SeePak!

Under the first phase of the agreement, Wuzung will collect waste in South and East districts of the metropolis. In both districts, the Chinese company will lift garbage from house to house free of cost.
There is no reliable data about the amount of solid waste the metropolis generates on a daily basis, though estimates suggest it runs into thousands of tonnes.
Former Sindh chief minister Syed Qaim Ali Shah had in July asked the local government ministry to outsource the job of garbage lifting to some international firm in at least three district municipal corporations.


Why free? Bait and switch, or use the garbage to produce power from trash for resale to the bakis at exhorbitant rates? Will the minorities (who were kept alive after partition to pick garbage which the momeens deemed below their dignity) protest?

Haram ka link: http://www.dawn.com/news/1297718/chines ... in-karachi

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Re: Pakistani Economic Stress Watch

Postby kapilrdave » 21 Nov 2016 19:29

Peregrine wrote:Rishi Verma Ji :

Pakistan's Debt and Liabilities-Summary

A. Total Debt and Liabilities (sum I to IX) : 22,461.8 Billion Pak Rupees

i.e. 22.4618 Trillion Pak Rupees
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In Indian Rupees, that is equivalent to the amount of notes India withdrew from circulation ie. 14 lakh cr :shock:

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Re: Pakistani Economic Stress Watch

Postby sudhan » 21 Nov 2016 20:45

Pak must print more money to payoff loans and become a superpower.. If the Amirkhan can do it, so can Gharib Khan

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Re: Pakistani Economic Stress Watch

Postby Falijee » 21 Nov 2016 22:18

anupmisra wrote:Chinese company to lift garbage in Karachi
It's free....Hail SeePak!

Under the first phase of the agreement, Wuzung will collect waste in South and East districts of the metropolis. In both districts, the Chinese company will lift garbage from house to house free of cost.
There is no reliable data about the amount of solid waste the metropolis generates on a daily basis, though estimates suggest it runs into thousands of tonnes.
Former Sindh chief minister Syed Qaim Ali Shah had in July asked the local government ministry to outsource the job of garbage lifting to some international firm in at least three district municipal corporations.


Why free? Bait and switch, or use the garbage to produce power from trash for resale to the bakis at exhorbitant rates? Will the minorities (who were kept alive after partition to pick garbage which the momeens deemed below their dignity) protest?

Haram ka link: http://www.dawn.com/news/1297718/chines ... in-karachi


anupmisra:

-So, after "sleeping for ages", the provincial Sind Govt have now woken up to the GARBAGE PROBLEM in Kraachi. :lol: If, they would have paid less attention to Islamization and Jihad -making, they would have been aware that Garbage disposal / pollution is one of the greatest challenges of the 21st century , facing mankind.
-As to the "house to house, free of cost " assertion is concerned, they should be reminded that there is "no free lunch"; maybe, the Aam Abduls , may get a "free ride" from the Chini company ( maybe for publicity reasons) but ultimately, under the contract, there has to be some consideration .
- It seems that Pakistan has "fast tracking" its application to become a Chinese colony - like North Korea ! :mrgreen: (first CPEC, joint naval exercise, future hook-up with "Chinese internet", "gifting away" POK, sellling KESC to Chini Co,now garbage disposal) ; what is next- replacing the Paki Rupee with the Yuan currency :D .

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Pakistani Economic Stress Watch

Postby Peregrine » 28 Nov 2016 00:55

X Posted on the STFUP Thread

Pakistan's leather garment exports on a continuous decline

KARACHI: Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) Chairman Atif Ashraf said on Saturday that exports of Pakistan’s leather garment industry are on a continuous decline while the government has no clue of the challenging situation.

“Our exports are declining at a time when regional competitors are gaining strength in different markets,” Ashraf said in a statement.

He said the leather garment industry of Pakistan was in distress and was about to collapse if the government did not come forward to bail it out by offering incentives.

“Ours is a high value-added industry and it is the second largest value-added export sector of Pakistan after textiles,” he said.

Pakistan’s leather garment exports dropped 12.35% during fiscal year 2015-16 compared to 2014-15, according to the Pakistan Bureau of Statistics, which appeared to be alarming as the industry was facing the spectre of closure.

Unless the government announced a relief package for the industry, the exporters would be forced to shut down their units, which would cause unemployment among workers, Ashraf said.

He pointed out that Indian and Chinese governments had offered high rates of duty drawback to their exporters as an incentive for boosting exports. China offers 8.5% duty drawback on the export of leather garments and India offers 9.5%.

In Pakistan, the duty drawback rate is 4.26% for leather jackets. This facility was given when there were no taxes at the import stage on raw skin, pickle and wet blue. Now, the government charges 3% customs duty and 1% withholding tax, but the duty drawback rate has not been revised. Leather garment exporters import 60% to 70% of raw material for manufacturing different products.

Ashraf urged the prime minister and federal commerce minister to activate the Trade Development Authority of Pakistan (TDAP) and commercial counsellors in Pakistani missions abroad to help exporters in the international market so that Pakistan’s leather garment products could be marketed on a large scale.

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Re: Pakistani Economic Stress Watch

Postby Prem » 28 Nov 2016 04:25

Pakistan obtained $3b in loans in last four months
http://tribune.com.pk/story/1245705/pak ... ur-months/

ISLAMABAD: Pakistan has obtained $3 billion in new foreign loans in the past four months, and alarmingly three-fourths of the borrowing is for meeting budget financing requirements and building foreign currency reserves.The foreign economic assistance from July through October this year stood at $2.95 billion, according to official statistics. However, the government obtained $2.2 billion or 75% of the total loans for non-productive purposes.The $2.2 billion borrowings include $1 billion in Sukuk Bonds, which were floated by pledging the Lahore-Islamabad motorway in collateral, and $900 million from foreign commercial banks. Both these loans were aimed at meeting the needs of budget financing and forex reserves.The $3 billion in loans were about 38% of the annual economic assistance of $8 billion that the government has projected to receive during the current fiscal year 2016-17.Foreign loans are only productive when these are utilised for asset building as this provides a source of earnings to return the loans, said Dr Kasier Bengali, a renowned economist of the country.His work suggested that with a shift in focus from project to programme loans, the country’s infrastructure is completely ignored and it has started collapsing.Bengali has argued in the past that as long as the rate of return is at least 1% higher than the cost of borrowing, foreign debt does not create trouble in debt management. However, most of the fresh borrowings are going for meeting budget financing needs, which adds burden on the government.State Bank of Pakistan’s former governor Shahid Kardar has also recently highlighted the issue of high cost of borrowings compared with the returns that the central bank gets by placing these deposits.After reaching a peak of $19.5 billion, the SBP’s official foreign currency reserves have slipped below $19 billion again – a result of reduction in exports and remittances receipts and increase in foreign debt repayments.
Another notable pattern was that Pakistan’s traditional bilateral sources of borrowings and grants were drying up. Out of 12 traditional bilateral partners, nine did not disburse any sum during the July-October period.These include France, South Korea, Norway, Oman, Saudi Arabia, Organisation of Petroleum Exporting Countries (Opec) and European Union. China disbursed $411.5 million loans from July to October. Most of Chinese financial assistance has been shifted to off the budget.Beijing gave $216 million loan for construction of Sukkur-Multan motorway under the China-Pakistan Economic Corridor (CPEC). Another sum of $97 million has been released for Thaikot-Havelian section of the CPEC route.The United Kingdom gave $76.2 million in grant for Benazir Income Support Programme and education projects of Punjab and Khyber-Pakhtunkhwa. The project grant from the United States stood at only $27 million in the first four months.Due to drying up of non-debt creating sources and increasing infrastructure development requirements, Pakistan’s debt has been gradually increasing in absolute terms.Two renowned economists, former finance minister[b] Dr Hafiz Pasha and former director general debt Dr Ashfaque Hasan Khan, have projected that Pakistan’s external debt to grow to $110-billion by 2019-20./b]However, the Finance Ministry said it was naïve to assume that the external debt would grow to $110 billion by 2019-20 with a possible assumption that there would be no repayments during this period.

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Pakistani Economic Stress Watch

Postby Peregrine » 29 Nov 2016 19:22

X Posted on the STFUP Thread

Punjab textile groups to mark Dec 6 as black day

FAISALABAD: Scores of associations of textile manufacturers have announced they will observe December 6, 2016 as a black day in a bid to register their strong protest over discrimination against the Punjab industry in gas prices, a key input.


The disparity in gas prices had shattered the entire industrial chain in Punjab, they said in a meeting held on Monday.

All the trade bodies including the Pakistan Textile Exporters Association (PTEA), Faisalabad Chamber of Commerce and Industry (FCCI) and All Pakistan Textile Mills Association (Aptma) lashed out at what they said was the government’s discrimination against the Punjab-based textile industry as it was bearing the brunt of gas shortage.

PTEA Chairman Ajmal Farooq said the industries in Sindh were consuming low-priced gas to meet their needs whereas Punjab industries, which generated the highest revenue, were compelled to use the expensive re-gasified liquefied natural gas (RLNG) in their production process.

With the recent reduction in the industrial gas tariff, the price for Sindh industries has become Rs400 per million British thermal units (mmbtu) whereas Punjab industries are paying over Rs900 per mmbtu for RLNG.

“With a huge difference of 120% in gas prices how can we survive? This is unjust,” Farooq said.

Expressing disappointment over the indifference and lack of cooperation from government institutions, he said they were repeatedly voicing their concern over the situation but all of the hue and cry was falling on deaf ears of the policymakers.

He urged the prime minister to take notice of the discrimination and ensure gas supply to the industries of Punjab at the same price.

He also called for immediately announcing the long-awaited prime minister’s package for the ailing textile industry and the supply of electricity to industries at Rs7 per unit to enable them to compete well in the international market.

He announced that if the government did not fulfill their demands, they would hold a massive protest.

FCCI President Sheikh Muhammad Saeed criticised the government for not tackling the industrial crisis, saying the situation could be more alarming in coming months as 50% of the industrial capacity in Punjab had remained unutilised.

Aptma’s Naveed Gulzar said the policymakers were not serious about resolving the issues of textile industry and the situation was worsening day by day. He demanded that equal industrial gas tariffs should be applied across the board.

Aptma chief Muhammad Saeed was of the view that the situation was becoming unbearable for the industry and it was a constant source of inefficiency plaguing the viability of producing units.

“A further drop in exports would have dire impact on the economy which is already under pressure,” said Saeed. “The textile industry is the premier industry earning foreign exchange and providing jobs to millions of workers but it is heading towards disaster due to the high cost of energy and lack of basic working capital.”

All Pakistan Cotton Power Looms Association Chairman Abdul Haq said, “we had continuously forewarned about the crisis but no heed was paid towards the problems of the industry. Resultantly, not only have the exports dropped but we are also losing the hard-won export markets.”
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Re: Pakistani Economic Stress Watch

Postby adityadange » 30 Nov 2016 16:54

^^^
how hard/easy it is for indian textile industry to capture the pakistani export market? if we could capture what is lost by pakistan that will be like rubbing salt on their injury.

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Re: Pakistani Economic Stress Watch

Postby Rishi Verma » 30 Nov 2016 17:06

So Chinese company will "collect" garbage from pakistani homes for free. In return the pakis will pay for garbage collection equipment, training fees, and most importantly garbage sorting equipment where 30% of baki garbage will be utilized by Chinese restaurants and others will be sold back as by-products such as Chinese Refined Oil back to the Bakis for their Unday Curries.

It is estimated that up to one in every ten lower-market restaurant meals consumed in China is prepared with gutter oil.


Yes the garbage collection service is "free"
Last edited by Rishi Verma on 30 Nov 2016 17:09, edited 1 time in total.

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Re: Pakistani Economic Stress Watch

Postby anupmisra » 30 Nov 2016 17:08

No "free lunch" at the All-You-Can-Eat-Chinese-buffet, eh?

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Re: Pakistani Economic Stress Watch

Postby Rishi Verma » 30 Nov 2016 17:11

Baki Enigma :
Everytime I thought that Bakis can't stoop any lower, they raise the goal-post -so to speak.

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Re: Pakistani Economic Stress Watch

Postby prashanth » 30 Nov 2016 18:07

Rishi Verma wrote:So Chinese company will "collect" garbage from pakistani homes for free. In return the pakis will pay for garbage collection equipment, training fees, and most importantly garbage sorting equipment where 30% of baki garbage will be utilized by Chinese restaurants and others will be sold back as by-products such as Chinese Refined Oil back to the Bakis for their Unday Curries.

It is estimated that up to one in every ten lower-market restaurant meals consumed in China is prepared with gutter oil.


Yes the garbage collection service is "free"


Utterly disgraceful. And to think that most of the electronics, toys etc we buy in India and elsewhere are made by poor people in China who suffer like this.

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Re: Pakistani Economic Stress Watch

Postby Peregrine » 08 Dec 2016 16:24

X Posted on the STFUP Thread

World Bank cancels $100 million loan for Pakistan

ISLAMABAD: The World Bank has cancelled a $100 million loan to Pakistan for a natural gas efficiency project due to no progress in achieving the development objectives and a lack of interest on the part of the gas distribution company.

The project, which was to be carried out by Sui Southern Gas Company (SSGC) in its distribution areas in Karachi, interior Sindh and Balochistan, was aimed at enhancing the supply of natural gas by reducing physical and commercial losses of gas in the pipeline system.

A World Bank report said the failure of the project led to its closure and, as a result, the levels of unaccounted-for gas (UFG) remained high while continuing to drain the precious natural resource, the Dawn reported.

Illegal connections, one of the drivers of UFG, were increasing at a rate faster than the countervailing reduction of technical losses.

Justifying its rating of "unsatisfactory", the World Bank report said it should have exercised caution and not proceeded with a project that did not receive sustained interest from the board and management of SSGC, which had insufficient ownership in the project.

Against the original commitment of $200m, the bank had disbursed only $0.25m. World Bank Amar Rahay

The ministry of petroleum and natural gas was keen on the reduction of UFG, which was on the rise at the time of the project preparation and increased further during the project implementation phase.

Oil and Gas Regulatory Authority (Ogra) had imposed a penalty on gas companies for UFG beyond the benchmark of 4.5 per cent.

Bureaucratic processes within SSGC also contributed to procurement delays and bid expiration. The SSGC management attributed the failure of the project to the procurement process.

Most of UFG comes from dilapidated or deteriorating pipelines, leaking joints, gas theft in the form of tampered-with metres, illegal connections and malfunctioning metering equipment.

The World Bank undertook a strategic review of the project, which identified strong implementation challenges with no progress towards achieving the development objectives of the project as well as no disbursement against project-related activities.
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Re: Pakistani Economic Stress Watch

Postby ramana » 08 Dec 2016 22:20

From the STFU thread...

LAHORE: Pakistan on Wednesday lifted an ‘undeclared’ ban on imports of ginned cotton from India, pledging to strictly implementing all phytosanitary and other conditions governing the fibre’s imports on future incoming shipments via surface or sea.

Earlier, the Department of Plant Protection (DPP) of the Ministry of National Food Security and Research put cotton imports from India on hold through Wahga and Karachi port from Nov 23, saying the shipments did not fulfil phytosanitary conditions.

However, traders at that time claimed that rising border tensions between the two neighbours had prompted Islamabad to impose the ban on Indian cotton.


A trader told Dawn that the DPP had started issuing permits for importing cotton from India via Wahga.

But the DPP has also made it clear to importers that only the consignments free from cotton seeds will be accepted and allowed into the country, he added.

He said the department required production of phytosanitary certificate issued by authorities in the country of origin declaring that the consignments are free from pests and disease and were fumigated for 48 hours before loading
.

“Besides, the importers are required to obtain import permit 14 days prior to the arrival of the cotton consignments,” he said.

Traders said none of these conditions is new. “But the fact remains that the department has never implemented or threatened to implement them to the letter ever like now,” a textile factory manager said.

“If implemented strictly, we will not be able to import cotton from any country in the world, let alone India, because no consignment is completely free from cotton seeds.”

Last year, Pakistan imported ginned cotton worth more than $800 million from India which accounted for two-thirds of India’s cotton exports.

Traders are expecting cotton imports from India and elsewhere to surge this year in view of the anticipated shortfall in the domestic crop.

The government expects cotton output to remain close to 10.5m bales of 170kg each against a reduced industry demand of 14m bales owing to widespread factory closures in Punjab because of higher energy prices.

A trader blamed Sikandar Bosan, the minister of National Food Security and Research, for creating hurdles in the way of import of Indian cotton. “He doesn’t realise that hurdles in imports from India will hurt textile exports and slow down economic growth.”

Last year, a drop of 27pc in domestic cotton output shaved 0.5pc off gross domestic product growth rate, according to the budget for the ongoing year. “Any delay in execution of the contracts with Indian cotton exporters will allow them an opportunity to raise their prices or cancel the deals,” the trader said. “That will not be beneficial for our industry or exports at a time when our crop output is falling far short of our requirement.”

Published in Dawn, December 8th, 2016




I think India should open textile mills in Sri Lanka, Nepal and Bangladesh and export this surplus cotton. Lets Pakis use their own cotton which is a water intensive crop.

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Re: Pakistani Economic Stress Watch

Postby nirav » 08 Dec 2016 22:48

Price hike is the best way to go wrt these pakis.
make the bhikharis pay top rupee ! :twisted:

The idiots dont realise India will happily trade with anyone as long as theres a profit.

They can keep debating MFN status to India, meanwhile we keep profiting out of them clueless pakis.
Awesome. :mrgreen:

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Re: Pakistani Economic Stress Watch

Postby yensoy » 09 Dec 2016 11:14

ramana wrote:I think India should open textile mills in Sri Lanka, Nepal and Bangladesh and export this surplus cotton. Lets Pakis use their own cotton which is a water intensive crop.


Absolutely!! Why are we exporting our cotton to these guys? We should be the ones importing agricultural commodities, especially ones which are environmentally degrading, like cotton and sugar and converting into higher value products for domestic consumption or re-export. If we do that in large quantities we will have them by the ba!!s, especially the jagirdars like Sharifs and even the PA retirees; while we can put an end to internal ecological devastation, recharge our water table, expand the acreage under organic cultivation, replace village level agricultural jobs with higher end food processing etc.

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Re: Pakistani Economic Stress Watch

Postby anupmisra » 09 Dec 2016 19:43

Baki future relies on a wing and a prayer (and wishful thinking). If wishes were horses....

Chinese investors to bring $150b after CPEC: BoI chief

Board of Investment (BoI) Chairman Dr Miftah Ismail has voiced hope that after completion of the China-Pakistan Economic Corridor (CPEC), $150 billion worth of investment would be brought by Chinese investors in Pakistan
In the post-CPEC scenario, we will require skilled manpower



Haram ka link: http://www.pakistantoday.com.pk/blog/20 ... boi-chief/

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Pakistani Economic Stress Watch

Postby Peregrine » 11 Dec 2016 15:07

X Posted on the STFUP Thread

ADB stalls $300m loan tranche over delayed reforms

ISLAMABAD: Pakistan’s foreign exchange reserves are likely to come under more strain in the coming months as the Asian Development Bank (ADB) has delayed the approval of a third loan tranche worth $300 million for budget financing after the government put energy sector reforms on the backburner.

The loan tranche is critical for the finance ministry as official foreign currency reserves have started depleting. In the last one month, forex reserves held by the State Bank of Pakistan have come down to $18.36 billion – a net reduction of $722 million. The loan proceeds would have been used to provide a cushion to the central bank’s foreign currency reserves besides meeting budget financing needs.

The ADB was supposed to approve the Sustainable Energy Sector Reforms sub-programme-III before the end of December, said sources in the finance ministry. The third tranche was part of a five-year $1.6-billion package the ADB had approved to make the country’s energy sector sustainable and self-reliant. The government has already received $800 million in two equal tranches in 2014 and 2015.

Sources said that due to non-implementation on most of the agreed prior actions, the ADB may not approve the loan in the near future. The finance ministry is the executing agency while the agreed actions have to be taken by the Ministry of Water and Power, Ministry of Petroleum and Natural Resources and the National Electric Power Regulatory Authority (Nepra).

Lack of coordination in policy formulation and implementation by the ministries and agencies remain a risk to these actions. After the expiry of the three-year $6.2-billion International Monetary Fund programme, the government’s focus has shifted away from the energy sector reforms agenda. It has also started taking populist decisions, which carry huge economic implications for the country.

Sources said that an ADB mission recently completed its visit to Pakistan to review progress on actions the country had agreed to take before the board of directors of the Manila-based lending agency and approve the next tranche.

The ADB had set 14 prior actions for the third loan tranche. These had to be completed by July 2016 to qualify for the loan of $300 million, according to ADB documents. Among the key conditions were approval of a multi-year tariff determination for two power distribution companies and reducing the flow of overdue payables of the energy sector to Rs92 billion. Both of these actions could not be completed, sources revealed.

Last month, the government rolled over the Rs136.5 billion loan it had obtained to pay off the circular debt. It suggests the power sector was not self-reliant even after the ADB and the World Bank collectively gave $2 billion in loans for power sector reforms in the past three years.

According to other conditions, the Private Power Infrastructure Board (PPIB) would update procedures for the 2002 IPP policy to ensure consistency with the least cost generation plan for competitive and unsolicited bids from IPPs for new capacity.

The government was also supposed to approve a restructuring plan for the midstream and downstream gas sector, which it could not do, said sources. The Ministry of Petroleum and Natural Resources was supposed to notify a revised 2012 Petroleum Policy to promote additional gas production.

Nepra was tasked to approve market rules to allow generators to directly contract sales to bulk power consumers, covering market registration, balancing operations, settlement and billing among market participants and offshore areas.

One of the targets under the second loan was to help Pakistan with short-term stabilisation measures and start the long-term restructuring for a sustainable power sector. This target could not be achieved.

However, the government claims that during the past three years it has improved the sector’s performance. There are now clear policies on tariffs and subsidies that are targeted at low-income customers. The line losses have been reduced and collection rate of Discos have improved.

Yet it could not address the circular debt that stood at Rs662 billion by the end of June 2016 including Rs335 billion parked in a holding company.

ADB Country Director Werner Liepach was unavailable for comment. A senior official of the finance ministry said that the December 2016 deadline for approval of the loan would be missed due to delay in taking prior actions by other government ministries

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Re: Pakistani Economic Stress Watch

Postby Prem » 12 Dec 2016 23:55

Like Deen and Zameen everything in pakiland is Borrowed & Chorrowed.

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Re: Pakistani Economic Stress Watch

Postby Prem » 15 Dec 2016 00:00


Peregrine
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Pakistani Economic Stress Watch

Postby Peregrine » 16 Dec 2016 05:39

Not sure if this Article has been posted earlier :
X Posted on the CPEC and STFUP Threads
Pakistan to protest World Bank’s ‘incorrect map’
Experts from Pakistan and different countries have gathered in Islamabad to attend the three-day conference on the theme of China-Pakistan Economic Corridor (CPEC) and regional integration.
PM’s Adviser on Foreign Affairs Sartaj Aziz inaugurated the conference. He said the CPEC would have far-reaching consequences for the entire world.
“China has allowed Pakistan to benefit from the CPEC according to its own priorities and the most important of these priorities is energy. Out of the total CPEC investment, $33 billion is in the energy sector,” he said, stressing upon the fact that most of this outlay is in the form of investment.
International Monetary Fund’s Resident Representative Tokhir Mirzoev told the audience that Pakistan had to attain 15% per annum growth in exports for the next five years to pay off the CPEC-related liabilities.
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Prem
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Re: Pakistani Economic Stress Watch

Postby Prem » 16 Dec 2016 06:07

Paki will end up exporting their women and kids to PRC just to pay the interest. Fun will start when Raa aigents makes sure good stock of Pork dishes at the houses & in the cars of Chini Lords residing in TSP and for sure All wrapped in the torn pages of Quran.

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Pakistani Economic Stress Watch

Postby Peregrine » 18 Dec 2016 00:57

X Posted on the STFUP Thread

Cwapjab industry heading towards shutdown :rotfl:

LAHORE: Businessmen of Punjab have warned that it has become difficult for industries of the province to run their operations and they are fast heading towards complete closure because of high cost of gas and electricity.

Speaking at a press conference, the All Pakistan Textile Mills Association (APTMA) leadership said Punjab-based mills could not operate with annual energy price differential of Rs70 billion.

The mills were going out of business fast, particularly in Punjab, due to the energy price differential within the country and undue delay in announcement of the textile package, they said.

APTMA Punjab Chairman Syed Ali Ahsan decried that textile units in the province could not survive by paying Rs11 per unit for electricity consumption compared to Rs5 per unit for other provinces.

He said that total consumption of these textile mills was around 1,400 megawatts.

He suggested that electricity price for the textile industry should be restricted to Rs7 per unit across the country.

He also called for gas supply at Rs400 per million British thermal units to the textile mills of Punjab at a time when the government was shifting the entire industry to liquefied natural gas (LNG).

Separately in a meeting, the executive committee of the Lahore Chamber of Commerce and Industry pressed the government to implement the same electricity and gas tariffs across the country as discrimination in utility prices was hitting the Punjab industry hard.

It said electricity and gas were basic raw material of the industry and difference in their prices between provinces was adding to the miseries of Punjab’s industrial sector as its products had almost become out of race in the global market.

The demand for lower energy prices came on a day when the Economic Coordination Committee (ECC) of the cabinet reversed its earlier decision on natural gas price reduction and restored the price at the previous level.

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Pakistani Economic Stress Watch

Postby Peregrine » 18 Dec 2016 01:45

X Popsted on the STFUP Thread

FDI in Pakistan down massive 45% in Jul-Nov
KARACHI: Foreign direct investment (FDI) in Pakistan has declined by 45% to $460 million in the first five months (Jul-Nov) of the ongoing fiscal year 2016-17, compared with $840 million in the same period last year, according to data released by the State Bank of Pakistan (SBP) on Tuesday.
China was the leading country with $157 million in net inflows in Pakistan during the first five months of FY17. However, inflows from China were significantly lower compared with $380 million in the same period last year
Turkey stood second with net inflow of $126 million, showing a significant increase from just $16 million in the same period last year
The United States was the third largest investor with FDI of $61 million, much higher than the outflows of $39 million in the period under review.
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Re: Pakistani Economic Stress Watch

Postby SSridhar » 19 Dec 2016 07:55

See, Moody's and S&P have raised their rating for Pakistan. Though Moody's agreed that on other counts such as vulnerability etc, Pakistan scored 'very low', yet its macroeconomic growth was getting better and therefore deserved a higher rating. It cited the World Bank report which sees positive growth of Pakistani economy! The S&P cited fall-outs from CPEC as a reason for its upgrade !!

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Re: Pakistani Economic Stress Watch

Postby chetak » 19 Dec 2016 09:39

SSridhar wrote:See, Moody's and S&P have raised their rating for Pakistan. Though Moody's agreed that on other counts such as vulnerability etc, Pakistan scored 'very low', yet its macroeconomic growth was getting better and therefore deserved a higher rating. It cited the World Bank report which sees positive growth of Pakistani economy! The S&P cited fall-outs from CPEC as a reason for its upgrade !!


This very same gang of scoundrels are not able to see any good in India.

Will insist and persist on putting out dire warnings and are ever ready to down grade India at the drop of the proverbial hat.

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Re: Pakistani Economic Stress Watch

Postby Bart S » 19 Dec 2016 09:59

chetak wrote:
SSridhar wrote:See, Moody's and S&P have raised their rating for Pakistan. Though Moody's agreed that on other counts such as vulnerability etc, Pakistan scored 'very low', yet its macroeconomic growth was getting better and therefore deserved a higher rating. It cited the World Bank report which sees positive growth of Pakistani economy! The S&P cited fall-outs from CPEC as a reason for its upgrade !!


This very same gang of scoundrels are not able to see any good in India.

Will insist and persist on putting out dire warnings and are ever ready to down grade India at the drop of the proverbial hat.


They are no more objective than the NYT or the State Department's proclamations and must be treated as such.

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Re: Pakistani Economic Stress Watch

Postby Neshant » 19 Dec 2016 11:17

Moody, S&P, Fitch are more so political entities than economic entities.

They stamped a whole load of mortgage backed securities as A rated investments thereby enabling its sale to pension funds and other suckers pre-2008 knowing full well it was total garbage. Yet not one of these crooks have gone to jail.

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Pakistani Economic Stress Watch

Postby Peregrine » 20 Dec 2016 15:49

X Posted on the PESW Thread

Now, Cwapistan passes resolution for nussbandi

ISLAMABAD: Within a month of demonetisation of high value currency notes in India, Pakistan's senate passed a resolution on Monday seeking withdrawal of Rs 5,000 notes from circulation to halt money laundering.

Pakistan is ranked 117th on the list of corrupt nations out of 175, according to the 2015 Corruption Perceptions Index reported by Transparency International. Corruption rank in Pakistan averaged 107.90 from 1995 until 2015, reaching an all time high of 144.00 in 2005.

Senator Usman Saifullah of opposition Pakistan People's Party (PPP) tabled the resolution, arguing that the Rs 5,000 note was being used in illegal transactions and should be withdrawn.

The move was strongly opposed by the ruling Pakistan Muslim League-Nawaz (PML-N) government. However, since the PPP has a majority in the upper house of parliament, the resolution was endorsed.

A member of Pakistan People's Party said that the government must withdraw the highest denomination currency note "in order to reduce illicit money flow, encourage the use of bank accounts and reduce the size of undocumented economy".

Opposing the resolution, law minister Zahid Hamid said that the move would have repercussions on the economy and the masses in general, as is happening in neighbouring India. He also said that withdrawal of the notes would create crisis in the market and people would resort to foreign currencies in absence of Rs 5,000 notes.

Hamid said that around 3.43 trillion Rs 5,000 banknotes were in circulation in Pakistan - around 30% of the total currency in flow in Pakistan now.

"Such a huge number of currency notes cannot be pulled from circulation without causing a monetary crises. If such steps are taken, people will lose confidence in the Pakistani rupee and will instead prefer foreign currency due to the steep drop in supply of local currency notes," the minister said.

At this, senator Saifullah said that instead of withdrawing the Rs 5000 currency note, its printing should be halted and the withdrawal should take place in a time span of three to five years.

The PPP senator said that most illegal transactions in the country were carried out using the Rs 5,000 note.

Ever since the Indian government ended high denomination currency notes by pulling out Rs 500 and Rs 1,000 notes from circulation, there has been increasing demands that Pakistan take similar steps that will help in revealing hidden assets and prevent tax evasion.

But, there were reservations expressed by some observers about the success of the move, as phased demonetisation would give ample time to illicit holders of currency notes to buy property or gold.
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Re: Pakistani Economic Stress Watch

Postby Prem » 21 Dec 2016 00:58


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Pakistani Economic Stress Watch

Postby Peregrine » 22 Dec 2016 18:05

X Posted on the STFUP Tread
APTMA continues rant seeking textile package
LAHORE: All Pakistan Textile Mills Association (APTMA) central Chairman Aamir Fayyaz has said that the export data for November does not reflect the ground realities of the textile industry, which is plagued with high cost of doing business all across the value chain.
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Pakistani Economic Stress Watch

Postby Peregrine » 23 Dec 2016 19:03

X Posted on the STFUP Thread


PAKISTAN SOLD KARACHI AIRPORT FOR REPAYING LOANS : PAK MEDIA

1. Karachi "Mortgaged Thrice for PK RS 320 Billion

2. Two Sections of Pak Highways Mortgaged for US$ 1 Billion each i.e. Total US$ 2 Billion
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Re: Pakistani Economic Stress Watch

Postby Prem » 25 Dec 2016 07:52

Paki Govt revenue 625x4=2500 Billion Roo-baya=23.80 billion=23.80 x9.09 ( pki tax to GDP ratio) = 216/217 Billion $ GDpee= PCI of 1080-1085 $


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Pakistani Economic Stress Watch

Postby Peregrine » 29 Dec 2016 02:12

X Posted on the STFUP Thread

Unable to compete: Over 30% of manufacturing capacity standing idle

FAISALABAD: Textile exporters have reiterated the demand for early announcement of the incentive package promised by the premier to control the widening trade deficit as substantial export capacity has been shut down because of high energy cost and other factors.

Commenting on recent trade figures in a statement on Tuesday, Pakistan Textile Exporters Association (PTEA) Chairman Ajmal Farooq and Vice Chairman Muhammad Naeem expressed concern over the growing trade gap and shrinking exports.

They said Pakistan’s exports fell 3.93% to $8.18 billion from July to November 2016, down $334.68 million compared to the corresponding period of previous year.

On the other hand, imports grew 8.7% to almost $20 billion in the July-November period. The import bill stood $1.6-billion higher than the previous year.

They cited high cost of production and failure to compete in the world market as major hurdles in the way of export growth and if factors causing the industrial crisis were not addressed, the situation may aggravate in coming months.

The drop in exports would have dire impact on the economy which was already under pressure, they said.

In order to rescue the ailing textile industry, the prime minister had promised a relief package as the industry had lagged behind in the region, but even after a delay of months, it was still waiting for the relief.

Lack of a serious attitude of the policymakers was badly hitting the economy, they remarked. Farooq was of the view that the textile industry was facing a crisis-like situation because the cost of doing business was much higher than regional competitors.

“Over 30% of the manufacturing capacity is lying idle and production has gone down on account of lack of competitiveness,” he said.

“We are losing our share in global trade whereas competing countries like Bangladesh, India, China and Vietnam are rapidly multiplying their exports just because of the edge they have in the cost of doing business and other incentives offered by their governments.”

Farooq suggested that the government needed to frame pragmatic policies in consultation with the stakeholders in order to bring down the business cost by fixing input prices in line with competing countries, which would provide a level playing field.
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Re: Pakistani Economic Stress Watch

Postby anupmisra » 29 Dec 2016 02:55

Prem wrote:Paki will end up exporting their women and kids to PRC just to pay the interest.


When the chini birathers promised that SeePack will create thousands of jobs, they meant comfort jobs. These "comfort" jobs will be based in al-bakistan along the shiny new highways and train way stops. Service to the chini truckers and engineers will be free and internally accounted for the value of the service to pay off the debt service.

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Pakistani Economic Stress Watch

Postby Peregrine » 29 Dec 2016 18:20

X Posted on the STFUP Thread

Pakistan's Debt and Liabilities Profile Provisional (In Billion Rupees)

June 2016 22,461.8 September 2016 23,389.6

Debt Increase in Three Months = P. R. 927.8 Billion = US$ 8.858 Billion
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Pakistani Economic Stress Watch

Postby Peregrine » 02 Jan 2017 06:13

X Posted on the PESW Thread

Year-end alarm bells - Capital suggestion

Alarm bell number 1: From July to September, the federal government’s net revenue receipts stood at Rs369 billion. For the same period, the federal government’s debt servicing liability stood at Rs413 billion. Lo and behold, the federal government’s net revenue receipts are not even enough to cover debt servicing. For the record, net revenue receipts have never been so low ever.

The federal government must borrow to cover defence. The federal government must borrow to cover pensions – both civil and military. The federal government must borrow to cover the expenses of running the civil government. The federal government must borrow to cover public order and safety affairs. The federal government must borrow to cover environment protection. The federal government must borrow to cover health affairs. The federal government must borrow to cover the expenses on ‘culture and religion’. The federal government must borrow to cover all allocations for social protection.

Alarm bell number 2: For the first five months of the current fiscal year, the repatriation of foreign exchange in the form of profits and dividends on foreign direct investment stood at $591 million. For the first five months of the current fiscal year, the total foreign direct investment stood at $460 million. Lo and behold, Pakistan paid out $131 million more than what Pakistan received as foreign direct investment.

What this means is that foreigners are taking out more dollars from Pakistan than the dollars being invested into Pakistan by foreigners. This is both scary and unsustainable.

Alarm bell number 3: From July to November, our exports stood at $8.7 billion. For the period between July and November, our imports stood at $17.3 billion. Lo and behold, Pakistan’s goods deficit stood at a colossal $8.6 billion. For the period between July and November, the current account deficit reached $2.6 billion, widening by an alarming 91 percent year-on-year. On a pro-rata basis, an annual current account deficit in excess of $6 billion is both scary and unsustainable.

Alarm bell number 4: Between June 2013 and June 2016, the government took dollar loans. From the World Bank, ADB and Islamic Development bank, it took $9.7 billion. From the IMF, it borrowed $6.2 billion. Bilateral loans amounted to $3.6 billion while bonds issued stood at $3.5 billion. From commercial banks, it took $1.85 billion. That’s a total of $25 billion over three years (over the same period, $11.95 billion was spent in the repayment of previous loans). To be certain, all these new foreign loans would have to be paid back in dollars. Lo and behold, our exports are going down and foreign investors are taking out more dollars than they are bringing into Pakistan. Again, this is scary and unsustainable.

Alarm bell number 5: On October 13, the IMF completed its twelfth and the final review under the $6.2 billion Extended Arrangement. To be sure, the budget for 2016-17, under the direction of the IMF, kept a cap of 3.8 percent of GDP on the budgetary deficit. The IMF plan has come to an end and the election is coming up. Now, prepare for a ballooning budgetary deficit.

But, Cwapistan will become CPEC

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Re: Pakistani Economic Stress Watch

Postby Aditya_V » 02 Jan 2017 13:42

One thing I find rather peculiar, why is leather industry so widespread in the gangetic belt but no soo much in the indus basin. In fact this is where much of the leather should be produced, not in places like Kanpur. Pakistan must shut down its cotton based textile industry, focus on leather products, similarly move land away from Wheat Mango etc for cattle grazing to produce meat and leather.


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