Pakistani Economic Stress Watch

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Vips
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Re: Pakistani Economic Stress Watch

Post by Vips »

After all the price increasing measures all the pakistanis will get from IMF and other countries are loans which will be used to make payment of interest of the old loans. They will survive till the next round of elections due in 15 months and then it will be fun time again with the payable increasing exponentially and the consequent loans received after implementing tough measures and squeezing aam abduls incapable of servicing even the interest payments.
Aditya_V
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

If PML and PPP are smart, they must appoint thier pasand Army men, allow the Pkr to slowly depreciate , keep forex low enough. That once I'm the dim comes PKR does a huge depreciation and I'm the dim has to do a 150 Rs correction in fuel prices
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

Aditya_V wrote:If PML and PPP are smart, they must appoint thier pasand Army men, allow the Pkr to slowly depreciate , keep forex low enough. That once I'm the dim comes PKR does a huge depreciation and I'm the dim has to do a 150 Rs correction in fuel prices
:shock:

In jihdadistan it is the Army who appoint the civilians... in addition to selecting&electing the politicians

Yawn- ISI given legal cover to screen government officials
The prime minister has officially tasked the country’s premier spy agency, Inter-Services Intelligence (ISI), with the screening of civil servants before their induction, appointments and postings, as well as promotions.

In doing so, the government has given legal cover to a practice that had already been in place, but had not been formalised as part of protocol.
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Re: Pakistani Economic Stress Watch

Post by Vips »

chanakyaa
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Re: Pakistani Economic Stress Watch

Post by chanakyaa »

A0A - Rupee plummets to all time low of 203 against USD

From Associated P!ss of Bakistan -- Saturday public holiday, load-shedding, restrictions on imports, cars, and some austerity measures on paper to impress IMF guys.

Wonder why just stop at Saturday? might as well declare entire week as public holiday, lots of savings
Cabinet okays administrative, austerity measures to overcome load-shedding: Minister for (Mis)-Information and Broadcasting Marriyum Aurangzeb
Minister for Information and Broadcasting Marriyum Aurangzeb on Tuesday said the Federal Cabinet had accorded approved administrative and austerity measures to overcome load-shedding, and conserve fuel and energy.

The decision to the effect was taken to steer the country out of the prevailing “extraordinary situation” by bridging the demand and supply gap of electricity, she said while addressing a news conference after the cabinet meeting, chaired by Prime Minister Shehbaz Sharif...
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Re: Pakistani Economic Stress Watch

Post by neeraj »

https://www.forex.pk/currency-usd-to-pk ... dollar.php
1 US Dollar (USD) Open Market = 204 Pakistan Rupee (PKR) as on Wednesday 8th of June 2022 08:06:14 AM
neeraj
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Re: Pakistani Economic Stress Watch

Post by neeraj »


कराची: 19 घंटे बिजली गु ल तो सिंधु देश की उठी मांग
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Re: Pakistani Economic Stress Watch

Post by Atmavik »

neeraj wrote:https://www.forex.pk/currency-usd-to-pk ... dollar.php
1 US Dollar (USD) Open Market = 204 Pakistan Rupee (PKR) as on Wednesday 8th of June 2022 08:06:14 AM

Nice.. Back to double century.. wishing them a sehwag like speed to triple century
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

Moody’s lowers five Pakistani banks’ outlook to negative
ISLAMABAD: Moody’s Investors Service on Wednesday affirmed the B3 long-term deposit ratings of five leading Pakistani banks and changed their outlook to negative from stable as a fallout of its last week’s downgrade of Pakistan’s sovereign rating to negative.

These banks are Allied Bank Limited (ABL), Habib Bank Ltd, MCB Bank Limited (MCB), National Bank of Pakistan and United Bank Ltd (UBL). As part of the same rating action, “Moody’s has changed the outlook on the banks’ long-term deposit ratings to negative from stable”, it said in a statement.

The rating agency has also downgraded the long-term foreign currency counterparty risk ratings of ABL, MCB and UBL to B3 from B2. These ratings are now constrained by the government of Pakistan’s foreign currency country ceiling, which was lowered to B3 from B2.
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

58% of the budget to be spent only on debt servicing and defence.
With Rs9.5tr outlay, govt to rely on loans
ISLAMABAD: The coalition government may unveil a nearly Rs9.5 trillion budget that has been prepared on a highly ambitious target of a mere 4% increase in expenses but one-fourth surge in revenues aimed at meeting a core condition of the International Monetary Fund.

Sources told The Express Tribune that the federal government has finally agreed to exhibit a primary budget surplus of nearly Rs200 billion by planning fiscal consolidation of nearly Rs1.8 trillion or 2.2% of the Gross Domestic Product in the next fiscal year.

The budgetary framework is projecting about 0.3% of the GDP primary budget surplus – showing that its net income will be more than the expenditure, excluding debt servicing cost. Earlier, during the Doha round of talks, the government had presented a primary budget deficit framework, which the IMF did not agree to.

A major chunk of the new budget – the Rs5.5 trillion or 58% of the budget – will be spent only on two heads – debt servicing and defence. There is an alarming increase of over Rs800 billion or 26% increase in debt servicing cost in just a year. In the outgoing fiscal year, the share of these two components was half of the total budget. The defence services’ share remained constant but the debt servicing has gone out of control.
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Re: Pakistani Economic Stress Watch

Post by Vinu »

IMF is coming after CPEC. The moment IMF releases fund ms most of the part will end up in Beijing (and Papa Johns).

https://english.newstracklive.com/ampne ... 358-1.html
The IMF suspected that Chinese IPPs were overcharging Pakistan and that these agreements needed to be reopened. Overpayment of around 41 billion PKR to Chinese IPPs was revealed in the Mohammad Ali report on IPPs.
As one wise BRFite pointed out many many years ago that there is only one country in the world which could help Paxi.
But fortunately only thing that is favouring Dharmics from that self-harm is Paxi’s H&D. I hope Paxi’s never give up their H&D for the sake of their economy.
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

Dilbu wrote:...
ISLAMABAD: Moody’s Investors Service on Wednesday affirmed the B3 long-term deposit ratings of five leading Pakistani banks and changed their outlook to negative from stable as a fallout of its last week’s downgrade of Pakistan’s sovereign rating to negative...
This is Yindoo-Yehudi saazish!

Modi brought CAA to keep Pakis out of bounds.. Moody is making Paki bonds CAA...
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

Dilbu wrote:58% of the budget to be spent only on debt servicing and defence.
With Rs9.5tr outlay, govt to rely on loans
ISLAMABAD: The coalition government may unveil a nearly Rs9.5 trillion budget that has been prepared on a highly ambitious target of a mere 4% increase in expenses but one-fourth surge in revenues aimed at meeting a core condition of the International Monetary Fund.

Sources told The Express Tribune that the federal government has finally agreed to exhibit a primary budget surplus of nearly Rs200 billion by planning fiscal consolidation of nearly Rs1.8 trillion or 2.2% of the Gross Domestic Product in the next fiscal year.

The budgetary framework is projecting about 0.3% of the GDP primary budget surplus – showing that its net income will be more than the expenditure, excluding debt servicing cost. Earlier, during the Doha round of talks, the government had presented a primary budget deficit framework, which the IMF did not agree to.

A major chunk of the new budget – the Rs5.5 trillion or 58% of the budget – will be spent only on two heads – debt servicing and defence. There is an alarming increase of over Rs800 billion or 26% increase in debt servicing cost in just a year. In the outgoing fiscal year, the share of these two components was half of the total budget. The defence services’ share remained constant but the debt servicing has gone out of control.
why are they wasting 42%, this can be made 100%, No need of Roads, electricity or education. Paki Army should not understand Artillery tables or Machinery maintenance, PAF pilots need not know how to fly. They can all become like the Taliban.
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Re: Pakistani Economic Stress Watch

Post by Shaktimaan »

Aditya_V wrote:
Dilbu wrote:58% of the budget to be spent only on debt servicing and defence.
With Rs9.5tr outlay, govt to rely on loans
why are they wasting 42%, this can be made 100%, No need of Roads, electricity or education. Paki Army should not understand Artillery tables or Machinery maintenance, PAF pilots need not know how to fly. They can all become like the Taliban.

Saar, jokes aside the remaining 42% is not spent on roads, electricity, education. Most of the 42% is taken up by salaries and pensions of gobarmint employees. Their total development outlay is only about 12% of federal budget.
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

Lurking trade deficit eclipses 6% growth
The Economic Survey of Pakistan 2021-22 showed that the government of former prime minister Imran Khan achieved 6% growth against the target of 4.8%, in addition to showing better performance in exports and remittances.

However, it could not address structural imbalances in the economy that led to a record increase in public debt and the highest-ever imports. It also missed two key goals – reasonable increase in investment and savings.

The PTI government missed the average 8% inflation target that is now projected to reach nearly 12%, while the rupee traded at Rs189 to a dollar on the day Imran was ousted from power, becoming a key reason for inflationary prices in the country.

Ismail said that the country’s growth story remained the same – whenever the rate crosses 6%, current account deficit explodes.
Ismail said that the PML-N government had left behind an 11.1% tax-to-GDP ratio that the PTI government could not even match in four years.

“The balance of payment situation of the country particularly stood out with trade deficit, jumping 48% and the current account deficit spiralling out of control last year,” Ismail said.

The PTI government’s achievement to have 6% economic growth rate was dampened in the face of glaring macroeconomic imbalances.

The current account deficit is now projected at 4.1% of GDP or $16 billion for the outgoing fiscal year – many times more than the target of 0.7% or $2.3 billion – a big failure of the PTI government that is now costing the country dearly.
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

Pakistan's forex reserves continue to decline
KARACHI: Pakistan's foreign exchange reserves continued the downtrend as the total amount held by the country dropped to $15.2 billion, the latest data from the State Bank of Pakistan (SBP) showed Thursday.

The total liquid foreign reserves held by the country stood at $15,176.5 million as of June 3, after the reserves declined by $594.9 million or 3.77%, compared to $15,771.4 million reserves on May 27, the data revealed.

Citing the reason for the decline, the central bank said its reserves fell by $497 million due to external debt repayment.
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

NEPRA OKAYS ANOTHER POWER TARIFF HIKE FOR KE CONSUMERS
KARACHI: The National Electric Power Regulatory Authority (NEPRA) on Thursday approved Rs6.49 increase in the power tariff for the electricity consumers of K-Electric (KE), ARY News reported.

The hike in the power tariff for K-Electric consumers was approved on account of the monthly Fuel Charges Adjustment (FCA).

NEPRA’s hearing on the request of K-Electric to increase the power tariff was held today under the chair NEPRA chairman Tauseef H. Farooqi.

The amount will be received in the bills of July 2022, the power regulator body said.
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Re: Pakistani Economic Stress Watch

Post by mody »

https://www.msn.com/en-in/money/markets ... 05d167acc0

Karachi stock exchange the 2nd worst performing market in Asia, after Sri Lanka. There are still at least 15 trading sessions left for the paki fiscal year to come to a close. If they try, they can top the list. Inshallah!!
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Re: Pakistani Economic Stress Watch

Post by g.sarkar »

Manish_P wrote: This is Yindoo-Yehudi saazish!
Modi brought CAA to keep Pakis out of bounds.. Moody is making Paki bonds CAA...
Sirji, please do not neglect the Naṣārā. They too have contributed in their own way.
Gautam
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

Take that IMF.
Cabinet gives nod to 15% increase in salaries of govt employees
The federal cabinet on Friday approved a 15% increase in the salaries of the federal government employees and a 5% increase in pensions, sources said.

The decision comes less than an hour before the Prime Minister Shehbaz Sharif-led government is set to present its first budget.

Federal Information Minister Marriyum Aurangzeb took to Twitter and said: "The Prime Minister has rejected the Finance Ministry’s proposal of a 10% increase and has approved an increase in government employees’ salaries of 15% with the consent of the cabinet." :shock:
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Re: Pakistani Economic Stress Watch

Post by kit »

[/quote]

good plan to tackle inflation :mrgreen:
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

The Bakis will increase printing of the currency to pay the raise.

There is also a sharp uptick in the fakes of Rs 500 denomination in India

Time we gave a very strong impetus to digital currency for all transactions.. if not another demonetisation
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Re: Pakistani Economic Stress Watch

Post by g.sarkar »

https://www.dawn.com/news/1694354/impac ... tastrophic
Impact of power price hike to be ‘catastrophic’
Ahmad Fraz Khan, June 12, 2022

LAHORE: With a staggering increase of 46.77 per cent in electricity charges about to be included in monthly bills, sectoral experts, economists, sociologists and politicians across the divide have a consensus: “It will have a catastrophic impact on an overwhelming majority of Pakistanis.”
The National Electric Power Regulatory Authority (Nepra) has already approved a hike of Rs7.91 per unit in the base price — from the current Rs16.91 to Rs24.82 per unit — and the government is about to notify it to take effect from the new fiscal, if not notified earlier.
The normal tax rate on electricity bills is around 22pc, adding which would jack up the per-unit cost by another Rs5.46 — taking the effective rate to Rs30.28 per unit for domestic consumers.
“It is going to be a social and economic disaster; pushing a few million people further down the poverty line, reducing the middle class and increasing the lower middle, hiking the crime rate and deepening social chaos,” said Muhammad Shabbir, a professor of sociology.
The government may not benefit either, as electricity theft will go up substantially, if not correspondingly, neutralising the intended impact. Along with theft, corruption would add up significantly. He said these kinds of burdens would quickly turn into an existential challenge that the majority could not meet. Add similar pressures from two other (oil and gas prices) sources, and the fears of social chaos would assume a tragic proportion, he alarmed.
.....
Gautam
Rona dhona is going on in YouTube for the petrol price raise. It is absolutely unfair for the Saudis to charge Pakistan for petrol.
https://www.youtube.com/watch?v=9JOzld3 ... shtraVoice
Pak Media में पेट्रोल 310 रूपये लीटर सुनकर मच गया मातम | Pak Media On India
Manish_P
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

Despite all this have you seen the Income tax rates in Bakistan.

I used the IT calculator given by Dawn and was shocked on how low the rates were, especially when compared to india. And still this RR from the awaam...

A 1 lakh PKR montlhy salary has a monthly income tax of Rs 8.33 PKR
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Re: Pakistani Economic Stress Watch

Post by rsingh »

First of all they have to print a new currency called "Dinnar" ( thus completing Arabization). 1 Dinnar= 1000 Baki rupees. Mullah will be dancing with communal orgasm.
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

rsingh wrote:First of all they have to print a new currency called "Dinnar" ( thus completing Arabization). 1 Dinnar= 1000 Baki rupees. Mullah will be dancing with communal orgasm.
Blasphemy.. it should have name of father of nation.. hence i had proposed 'Djinnahr'.

It contains Dinar, Jinnah and Jinn..
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Re: Pakistani Economic Stress Watch

Post by madhu »

Manish_P wrote:Despite all this have you seen the Income tax rates in Bakistan.

I used the IT calculator given by Dawn and was shocked on how low the rates were, especially when compared to india. And still this RR from the awaam...

A 1 lakh PKR montlhy salary has a monthly income tax of Rs 8.33 PKR
There is something wrong in Dawn calc. It is 2500 per month or 30,000 per year.

https://taxcalculatorpakistan.com
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

Isn't that the old slab?
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Re: Pakistani Economic Stress Watch

Post by chanakyaa »

rsingh wrote:First of all they have to print a new currency called "Dinnar" ( thus completing Arabization). 1 Dinnar= 1000 Baki rupees. Mullah will be dancing with communal orgasm.
Funny you mentioned new currency. wondered all these years, how come some baki madarssa ekhonomist hasn’t concluded that the root cause of their economic woes is the similarity of their currency name to currency of kafirs. May be reissuing currency as naya dinar/Djinnahr fixes the problem. I mean,in the abrahamic world it’s all about managing perceptions.
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Re: Pakistani Economic Stress Watch

Post by CalvinH »

Manish_P wrote:Isn't that the old slab?
Yes. Old slab. With new rates there is no income tax till PKR 12L.
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Re: Pakistani Economic Stress Watch

Post by rsingh »

CalvinH wrote:
Manish_P wrote:Isn't that the old slab?
Yes. Old slab. With new rates there is no income tax till PKR 12L.
What slab? Who declare true income. It works for country where taxes are paid it is all Sialkot statistics Saar.A country which is full of Jagirdars and slave villages where Govt doesn't disclose details of major international contracts normal rules of economics do not apply.. JMT
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

An economy losing steam
The most important question is whether our economy is in a financially sound position or not? My short and simplified answer is “No”. Our economy is losing steam, or perhaps has lost it.

The most glaring example of the unsound fiscal management of an economy, especially when it is under an IMF programme, is the primary balance, which ought to be positive.
The current account deficit itself is not a bad thing, and we can tolerate up to $7 billion of deficit at the current level, however, anything beyond that level will be unmanageable.

In hindsight, once we had achieved a desirable level of current account deficit last year, the government should have contained its spending and should have introduced policies to bring in foreign direct investment (FDI).

Instead, it took the opposite step and introduced off-budget subsidies. It also obstructed free and competitive capital resource allocation by heavily leveraging the construction sector, which blocked capital without adding any tradable stock to the national assets.

The introduction of off-budget subsidies and an artificial reduction in fuel prices not only halted the IMF programme, they also deteriorated our fiscal account sharply.
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

Rupee hits 203-mark against dollar in interbank trade
KARACHI: In the first trading session after the budget 2022-23, the Pakistani rupee continues to fall and again surpassed the 203-mark by losing 65 paise in the interbank during intraday trade on Monday.

“The sentiment is negative across all capital markets today,” financial market expert Saad Ali said Monday.
He said that the federal budget for the next fiscal year was being seen as a “major milestone” for the revival of the stalled $6 billion International Monetary Fund (IMF) programme.

However, Ali, stated that the market believes that the federal budget is “insufficient” and the Fund may not accept this budget.
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

Why should a martial race like pakis need approval from IMF for anything?
Govt to revisit salary tax relief after IMF disapproval
ISLAMABAD: As the International Monetary Fund (IMF) completely rejected the proposed tax relief in the Personal Income Tax (PIT) to the tune of Rs47 billion, the government is left with no option but to consider making changes to the proposal, The News reported Monday.

While the Federal Board of Revenue (FBR) has given the relief to the salaried class earning up to 1.2 million rupees per annum, top official sources said that the IMF conveyed its clear reservations regarding the proposed rate for the PIT.
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

rsingh wrote:
CalvinH wrote:
Yes. Old slab. With new rates there is no income tax till PKR 12L.
What slab? Who declare true income. It works for country where taxes are paid it is all Sialkot statistics Saar.A country which is full of Jagirdars and slave villages where Govt doesn't disclose details of major international contracts normal rules of economics do not apply.. JMT
Salaried class in India gets income tax deducted at source (TDS) Saar. Don't know if Bakistan has concept of TDS on income..

EDIT- Looking at the post above it seems like, in case they don't have, then the IMF is going to give them a crash course in it...
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Re: Pakistani Economic Stress Watch

Post by CalvinH »

In budget conference Paki FM refused to answer a question on "what dollar/PKR rate is the current budget based on?" Speculations are that its based on PKR 210. So the downward spiral of the PKR continues...
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Re: Pakistani Economic Stress Watch

Post by bharathp »

it just hit 205.10 - the accelertion is happening
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

CalvinH wrote:In budget conference Paki FM refused to answer a question on "what dollar/PKR rate is the current budget based on?" Speculations are that its based on PKR 210. So the downward spiral of the PKR continues...
Or at 150 so the entire budget numbers are hogwash
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

Ya arrah. there is so much increases happening in every field it is becoming very tough to keep track. Can bakistan have a stock market like ticker for Gas, Bijli and PKR ?

ECC okays Rs13 per unit raise in power tariff
With two major fuel suppliers in dire need of liquidity to the tune of Rs 2 trillion in three months, the government has started passing on the increase in electricity tariff by an average Rs 13 per unit in quick instalments to win over an urgently needed bailout package from the International Monetary Fund (IMF).

Highly placed sources told Dawn that power distribution companies (Discos) have already been communicated directives to withdraw with effect from June 8 a subsidy of about Rs 5 per unit introduced by former premier Imran Khan on Feb 28. This will become part of the current month’s consumer bills that will also include an additional fuel cost adjustment of Rs 4 per unit.

This will be followed by two equal instalments of Rs 3.50 per unit each. These will become effective in July and August billing cycles, followed by the remaining Rs 1 per unit adjustment later.

This will clear the power-sector conditions of the IMF and help revive its programme suspended since February last year.
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Re: Pakistani Economic Stress Watch

Post by Dilbu »

Pakistan to default if subsidies not abolished till July: Miftah
ISLAMABAD: Finance Minister Miftah Ismail has said abolishing the subsidies on petroleum products till July was imperative to prevent the country from going bankruptcy, hinting at another increase in the prices of fuel that whizzed past records earlier this month.
The finance minister claimed that the government was still giving Rs19 subsidy on petrol and Rs53 subsidy on diesel, adding that Sri Lanka also gave subsidies to its public and it, eventually, defaulted.
“Today, Sri Lanka is purchasing expensive oil and they do not have funds to buy medicines for their people,” the finance minister said as he warned of a similar situation in Pakistan.

He said that once the agreement with the IMF is reached and Chinese banks extend their loan facility to Pakistan, the market will regain confidence.
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