Pakistani Economic Stress Watch

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Aditya_V
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

dhyana wrote:Then, in a way, the Pakis are the puppet master here? I cannot imagine the CCP just walking away from billions in investment- they seem too mercantilist in nature. May be they already have what they want in Gwadar, etc.?
Pakis for the US and UK were mainly supported due to their anti India nature to contain India, China has a similar motive, soo Pakis believe they are too big too fail. They have benefitted from this and this is the glue which has kept an essentially fascist state together.
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Re: Pakistani Economic Stress Watch

Post by mody »

Do the paiks have to pay for Chinese companies in paki rupees? If so, they can simply print the money. The paki rupee may depreciate further and the Chinese will loose in the process. Already from the time of signing of some of the power purchase agreements, the paki rupee is down by 50% to the dollar.
ramana
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Re: Pakistani Economic Stress Watch

Post by ramana »

Two days ago at Zamzama (Karachi) a mother was begging for food 4 her 4 kids. Yesterday, she was begging and vomiting at the same time. And this morning she was hysterical, her bleeding son needed a rabies shot. May God forgive us, for we have truly sinned.
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Re: Pakistani Economic Stress Watch

Post by kit »

ramana wrote:
Two days ago at Zamzama (Karachi) a mother was begging for food 4 her 4 kids. Yesterday, she was begging and vomiting at the same time. And this morning she was hysterical, her bleeding son needed a rabies shot. May God forgive us, for we have truly sinned.
what a pity ! .,
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Re: Pakistani Economic Stress Watch

Post by bharathp »

Aditya_V wrote:Not really, China cannot enforce debt from its own Munna, now Pakistan has the power plants and solved its power crises, all paid by China.
cheen wont want payback. they want gwadar or the islands outlying gwadar ( a permanent Aircraft Carrier).

also, when cheen signed for the excess power capacity, the Pukis thought they would "grow" into it because pukis said" if you bring the road and power, the businesses will flourish".
thats like saying if you build an airport the plane will come!

they did not factor in skill training, converving the market from dumping by imports (specially from china).
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Re: Pakistani Economic Stress Watch

Post by CalvinH »

Aditya_V wrote:Not really, China cannot enforce debt from its own Munna, now Pakistan has the power plants and solved its power crises, all paid by China.
For the Power sector Paki Government is already settling the bills for the circular debt. So China is getting paid.
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Re: Pakistani Economic Stress Watch

Post by CalvinH »

mody wrote:Do the paiks have to pay for Chinese companies in paki rupees? If so, they can simply print the money. The paki rupee may depreciate further and the Chinese will loose in the process. Already from the time of signing of some of the power purchase agreements, the paki rupee is down by 50% to the dollar.
Both older power agreements in 1994 and 2002 are in dollar denomination. Then newer ones are in rupees but they are actually in dollars with a fixed conversion rate.
CalvinH
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Re: Pakistani Economic Stress Watch

Post by CalvinH »

Paki central government is sole buyer of all electricity. The are paying for 35K MW but are distributing only 20K MW or so. With line losses around 18% Paki government is paying for 50% of generation capacity from its own pocket. What a mess..

The plants have not been audited so no one knows whether they can actually generate 35K MW. The capacity can be only on Paper. So Paki government is actually paying billions of dollars for something that is not produced or may exist only on paper.
Aditya_V
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

Atleast Pakis dont have much of load shedding.
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Re: Pakistani Economic Stress Watch

Post by mody »

mody
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Re: Pakistani Economic Stress Watch

Post by mody »

https://www.msn.com/en-in/news/world/pa ... d=msedgdhp

UAE demands $1 Billion back from the pakis. Deadline given is for today 12th of March!! The Emirati brothers doing their bit.
With Saudi and UAE taking back all the deposits that they have made with State Bank of Pakistan, the real nude picture of Pakistani foreign exchange will become public knowledge. The paki only have so much that they can pawn to the Chinese, to keep getting dollars in return.
One more round of GUBO in the offing.
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

On what underlying basis is the Pak government able to give higher interest, that too in dollar terms?

Roshan digital account attracts $671m in six months
The Roshan Digital Account (RDA) launched in September last year has crossed 100,000 accounts and attracted $671 million, the State Bank of Pakistan said in a tweet on Friday. According to the SBP, the accounts have been opened by overseas Pakistanis from over 100 countries, indicating the increasing reach of the RDA and helping the government and the central bank improve external account of the country.

The main purpose of the RDA is to attract millions of Pakistanis living abroad by offering much higher returns on deposits than those in developed economies. The RDA was launched for non-resident Pakistanis (NRPs) to enable them to remotely open bank accounts in Pakistan through online digital portals without physically visiting branches. The NRPs can now avail digital banking facilities, including access to online banking, domestic funds transfer, utility bills and tuition fee payment in Pakistan, as well as investments in government bills, stock exchange and real estate with an option of full repatriation.

In order to attract more investment, the State Bank has also launched a savings scheme — Naya Pakistan Certificate — offering significantly higher interest rates, compared to those prevailing in most of the developed and developing economies. Buyers can own the certificate in US dollar with the highest interest rate of seven per cent and in the local currency with 11pc per annum provided the investment is made for five years.
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Re: Pakistani Economic Stress Watch

Post by kancha »

Manish_P wrote:On what underlying basis is the Pak government able to give higher interest, that too in dollar terms?

Roshan digital account attracts $671m in six months
Because repayment will be the headache of the NEXT govt of Pakistan, given that the minimum investment period is 5 years?
Manish_P
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

True. With the Paki army as the selectors, another Bakra will be put in the fore front to beg IMF/OIC/CTM for loans to repay this.

And given that it is likely that in 5 years the Paki rupee will depreciate further against the dollar... and more non-resident Pakis (especially from the Gulf) will find themselves sent back to Pakistan, this will be interesting to watch.
Anujan
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Re: Pakistani Economic Stress Watch

Post by Anujan »

You have to read the fine print for such accounts.

Most banking accounts are "safe" because of the underlying reserve ratio. A fraction of customer deposits should be kept in the reserve bank. So if any one bank fails, the customers can be compensated with reserves from other banks. On top of it, if the deposits are in local currency, they can technically print as much money they want.

Now this account says 7% interest in dollar terms.

1) how is exchange rate calculated? Is it 7% considering the exchange rate of today? Or exchange rate 5 years from now?

2) You deposit dollars. But in what underlying currency is the account denominated? Is it Paki rupee or dollar

3) is it set up as a bank or a money market fund or a bond? If it is a bond, bonds can default and give investors a haircut.
Anujan
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Re: Pakistani Economic Stress Watch

Post by Anujan »

Okay, in the name of science and for the benefit of everyone here, I read through the terms and conditions. I might have missed the fine print, but from my reading:

1. It is as attractive as it sounds. The money is denominated in dollars and the interest rate is 7% annualized if deposits are made for 5 years.

2. It is a certificate of deposit, not a bond. So early redemption is possible. But the yield curve is nuts, in favor of the investor. For example, if you decide to deposit for 5 years, and pull out your investment after 12 months, you will get 6.5% interest

There does not seem to be a downside. Except for black swan events

a) US might impose banking sanctions on Pakistan, in which case it is stuck
b) Pakistan government can decide to seize the accounts and default on the interest rates. Which does not have a direct consequence. These deposits are aimed at retail investors and not institutional investors. Institutional investors have many ways of retaliating, retail investors dont. This offering is limited to Expat Pakistanis, who can be screwed over.

It is really that attractive, there is perhaps no other investment vehicles with yields this attractive with notional risk this low.


Well, then the question is
"Why are Pakis doing this"

The answer is possibly
a) Faisalabad Financial Engineering. The current guy issues certificates of deposits with astronomical interest rates with no downside. Shows fantastic numbers for foreign exchange reserves. Leaves office in 3 years
b) Netas, Babus and Businessmen have convinced Im The Dim that this is a great idea. Have bought into this scheme for fantastic interest rates and are bleeding the country dry
c) Both of the above
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Re: Pakistani Economic Stress Watch

Post by yensoy »

Yes 7% USD interest rates for 5 year period is pure nuts. Not even junk bonds offer these kinds of returns. So clearly a desperate need to maintain H&D, buy affection and definitely some angle of money laundering where sovereign funds will be used to pay large benami depositors.

I wonder what the IMF has to say about this the next time they come begging.

Once again, I wish to remind everyone that after the 98 nuke tests, Pak FCNR equivalent deposits were returned to depositors in (rigged exchange rate) Pak rupees whereas FCNR Indian deposits were honoured to the fullest and repaid in hard currencies. So though they may offer 7% USD, it doesn't mean that they won't change the rules sometime down the road.
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

Guys, don't get your lungis in a twist, Pakis are just being stopped from failing and they have bought the argument they are too big to fail. As long as they are being propped up they will do well. If it is left to market forces the Paki Ruppee should be 200 to the Dollar
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Re: Pakistani Economic Stress Watch

Post by srin »

Not an economics expert, but it appears to me that it is in our interest that the Baki forex rate is propped up, and not depreciate to reflect the fair market price. Given that they are a net import country, as long as they prop up the forex rate - whether it is for H&D or to control inflation - they will keep losing forex reserves and papered over the problem. And their exports are going to suffer. And their public won't know what they are going to face till it is too late and they will have drastically depreciate their currency.
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Re: Pakistani Economic Stress Watch

Post by SRajesh »

https://youtu.be/J76YP1a07Nc
What is happening??
Another Extra-constitutional authority being appointed just like NAB!!!
Paki anchor shivering that it is another IMF driven nail in the coffin
Hope this comes through and then Toiletistan can collapse under the detritus collecting for the last 70 years!!
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Re: Pakistani Economic Stress Watch

Post by SaraLax »

yensoy wrote:Yes 7% USD interest rates for 5 year period is pure nuts. Not even junk bonds offer these kinds of returns. So clearly a desperate need to maintain H&D, buy affection and definitely some angle of money laundering where sovereign funds will be used to pay large benami depositors.

I wonder what the IMF has to say about this the next time they come begging.

Once again, I wish to remind everyone that after the 98 nuke tests, Pak FCNR equivalent deposits were returned to depositors in (rigged exchange rate) Pak rupees whereas FCNR Indian deposits were honoured to the fullest and repaid in hard currencies. So though they may offer 7% USD, it doesn't mean that they won't change the rules sometime down the road.
My guess too ... it might well be the case of Overseas Paki retd Generals, retd Colonels & their next gen US/UK citizens, Politically connected Paki business folks, Paki Politicians who -for safety pruposes - have one of their legs in some well-to-do Western country (along with their next generation folks) - who might be subscribing to these bonds using their black money stashed abroad in Tax free locations like Cayman Islands, British Virgin Islands, St.Kitts, UAE, Qatar & similar tax free locations that not only offer anonymity to their investments but also provide readymade Permanent Residency if not citizenships for people investing in their local banks. It not only helps Pakistan stay afloat financially for some more time but also brings these folks a safe & great ROI in times such as these where everybody is printing money left & right.
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

If NRP's connected to Paki Military are investing in these Bonds, they must have a plan which can mean only something sinister like 9/11 is in the works, as some black swan event is required to ensure these amounts get repaid.
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

What happens at the ground level is the same as at the national level...

Profiting off the poor, one small loan at a time
Maryam Bibi is one of the seemingly countless people in rural Sindh whom MFBs and microfinance institutions (MFIs) falsely classify as “farmers” on loan application forms. Banks use the group lending technique to give micro-loans to batches of four to six people. The group leader takes responsibility for all its members who are usually drawn from the same close-knit community.

As a result, access to microcredit has become incredibly easy — though expensive — in rural Sindh. Whether it’s to settle a gambling debt, pay for a dowry or buy an expensive mobile phone, all one needs are two photographs, a valid national identity card and a thumb impression verifiable through the biometric system. A couple of members in a typical group may actually be farmers, but most of them have nothing to do with farming, community leaders say. That’s because the State Bank of Pakistan (SBP) has explicitly asked microfinance providers to offer credit “primarily for asset creation and encouraging livelihood activities”. As such, few MFBs and MFIs in the area give out loans for personal use.

Neither the loan officer nor the verification team asked Zahida Bibi and her sister for proof of their sources of income. They promptly received the money and handed it to their brother. He used the money on an extravagant circumcision ceremony for his newborn. “It was a grand affair. Two dancers came from Larkana (city) to entertain guests,” she said with a hint of pride in her voice. But when the payback time came a couple of months ago, the two sisters were at their wits’ end. “Their recovery teams humiliated us publicly. They threatened they’d bring the police next time and put us behind bars,” she said. They paid off the debt by selling whatever valuables they had in their homes. They also faced domestic backlash as one of the husbands threatened divorce over the public spectacle. Their brother, who worked in Karachi and actually spent the money, couldn’t care less.
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Re: Pakistani Economic Stress Watch

Post by Deans »

SaraLax wrote:[

My guess too ... it might well be the case of Overseas Paki retd Generals, retd Colonels & their next gen US/UK citizens, Politically connected Paki business folks, Paki Politicians who -for safety pruposes - have one of their legs in some well-to-do Western country (along with their next generation folks) - who might be subscribing to these bonds using their black money stashed abroad in Tax free locations like Cayman Islands, British Virgin Islands, St.Kitts, UAE, Qatar & similar tax free locations that not only offer anonymity to their investments but also provide readymade Permanent Residency if not citizenships for people investing in their local banks. It not only helps Pakistan stay afloat financially for some more time but also brings these folks a safe & great ROI in times such as these where everybody is printing money left & right.
Yes. This is a scheme to allow Pak generals & RAPEs to bring back their black money from abroad, convert it to white and get a high return.
The bonds will be honored till the current lot of generals launder their money - Bajwa's extension is probably to ensure control.
After that Pak is screwed.
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Re: Pakistani Economic Stress Watch

Post by chanakyaa »

On what underlying basis is the Pak government able to give higher interest, that too in dollar terms?
Madrassa economics and accounting at its best. Like the saying "rob Peter to pay Paul". If you can secure a waiver/relief for $1.7 billion, sure you can pay 7% on $670 million. Dimran and generals cashing out so that next government can go back to IMF to beg and blame it on the previous government. Good old, clean, rinse, and repeat. This nonsense is probably allowed, because big powers want Bakis to stay functional even in dysfunction (i.e. maintain pressure points for India). If countries like Lebanon, Zimbabwe, Sudan, Yemen can be around in spite of economic/financial travesty, Pakistan can too. Finance/economy alone can't finish Bakistan, unless India actively finishes them.

Pakistan Signs $1.7 Billion Debt Relief Deal (Dec. 2020)
Pakistan has secured a $1.7 billion debt relief agreement to help offset the financial headwinds sparked by the coronavirus pandemic, officials said Monday.

The deal, following months of negotiations with creditors, will provide a moratorium on debt payments for large swathes of the current fiscal year and help ease the cash-strapped country's massive financial obligations.

"The Government of Pakistan has successfully negotiated and concluded rescheduling agreements with 19 bilateral creditors, including members of the Paris club," the country's ministry of economic affairs said in a statement.
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Re: Pakistani Economic Stress Watch

Post by Prem »

IMF is appointing Economic Viceroy for Bakisatan
Z
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Re: Pakistani Economic Stress Watch

Post by K Mehta »

Regarding the bakistani debt bonds
Anujan wrote: Well, then the question is
"Why are Pakis doing this"
My theory is bakis are laundering cryptocurrency and investing in their debt bonds.
The basis of my theory is https://www.dawn.com/news/1613320/govt- ... arms-in-kp
This must have been going on for quite some time to appear in a news article. Note that bakis have excess electricity production and problem in distribution. This would solve multiple problems at the same time.
Also note that there has been an inexplicable rise in remittances as well.
Something which should be of interest to FATF I think.
My theory onlee.
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Re: Pakistani Economic Stress Watch

Post by K Mehta »

Who’s who of the PSX-Dawn article
Few data points to consider
Out of total market capitalisation of the Pakistan Stock Exchange of Rs7.95 trillion on March 18
Fauji Foundation holds majority stakes in Fauji Fertiliser Company, Fauji Fertiliser Bin Qasim, Fauji Cement, Askari Bank, Mari Petroleum and Fauji Foods. These companies have a combined value of Rs449 billion.
Fauji Foundation tops the chart with a group share of 5.8pc in the PSX market capitalisation.
“Fauji Foundation is the only group in the list which uses all of its income for the welfare of the people with over nine million beneficiaries across the country.”
Assuming around 5 people per family atleast, the benefits of fauji foundation reach 45 million people. Roughly one fifth of the population of bakistan. This is not counting beneficiaries of DHA, nlc and other arms of the Kabila as well as the Shaheen and bahria foundation. Note that these are just the official listed entities. Also note that the benefits are distributed mainly to pakjabis.
Then you can understand why we can never have peace with bakis.
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Re: Pakistani Economic Stress Watch

Post by Cyrano »

Excellent catch K Mehta.

Not just our NSA but I hope all our GoI agencies dealing with Pak are aware of this barely hidden reality of the Pak Establishment. They own the country and will never let go of it because they have the money and the guns too.
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Re: Pakistani Economic Stress Watch

Post by Rishirishi »

yensoy wrote:Yes 7% USD interest rates for 5 year period is pure nuts. Not even junk bonds offer these kinds of returns. So clearly a desperate need to maintain H&D, buy affection and definitely some angle of money laundering where sovereign funds will be used to pay large benami depositors.

I wonder what the IMF has to say about this the next time they come begging.

Once again, I wish to remind everyone that after the 98 nuke tests, Pak FCNR equivalent deposits were returned to depositors in (rigged exchange rate) Pak rupees whereas FCNR Indian deposits were honoured to the fullest and repaid in hard currencies. So though they may offer 7% USD, it doesn't mean that they won't change the rules sometime down the road.
Wow are NRI's eligible :D :D
Seems the saying "it is expensive to be poor" is true in TSP's case.
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Re: Pakistani Economic Stress Watch

Post by ArjunPandit »

Manish_P wrote:What happens at the ground level is the same as at the national level...

Profiting off the poor, one small loan at a time
That’s because the State Bank of Pakistan (SBP) has explicitly asked microfinance providers to offer credit “primarily for asset creation and encouraging livelihood activities”. As such, few MFBs and MFIs in the area give out loans for personal use.

.....He used the money on an extravagant circumcision ceremony for his newborn. “It was a grand affair. Two dancers came from Larkana (city) to entertain guests,” she said with a hint of pride in her voice. But when the payback time came a couple of months ago, the two sisters were at their wits’ end. “T
wait what! in a way that is also asset creation
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Re: Pakistani Economic Stress Watch

Post by Vips »

Chinese mouthpiece in India doing its part in promoting Bhikaristan.
Top officials of the cash-strapped Pakistan Hockey Federation (PHF) will push for revival of bilateral ties against India during the 47th FIH Congress in New Delhi next month.

A top PHF official said it is an important meeting as the FIH president and executive board members will be elected for the next four years. “The meeting will give us an opportunity to talk to the Indian hockey federation officials on the possibility of reviving bilateral ties that could benefit Pakistan and India and the hockey followers in both countries,” he said.(Trying to be too smart by half)

The official said that Pakistan is keen to revive bilateral series even at neutral venues as it is badly in need of finances and believes only a series with India can allow it to earn good money from broadcasting rights, sponsors, advertisers etc.

Pakistan and India have not had any bilateral hockey ties in the last decade and PHF officials want to “convince their Indian counterparts of the financial benefits for both federations” from playing against each other.(Chutiyas pathetic attempt to do equal equal)
Art of begging comes naturally to the Porkis.
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Re: Pakistani Economic Stress Watch

Post by Manish_P »

Bajwa preparing Im-the-Dim for the halal cut

Whopping Rs1.27tr hike in taxes committed with IMF
Pakistan has made a commitment with the International Monetary Fund (IMF) to increase FBR taxes by a massive Rs1.272 trillion (almost 2.8 per cent of GDP) in the coming budget and jack up electricity rates by almost Rs 4.97 per unit in the remaining three months of the current fiscal year.

According to documents released by the IMF after approval by its executive board of directors of the modified extended fund facility (EFF), the government has also given an undertaking to continue making electricity tariff adjustments next year on monthly, quarterly and annual basis through “automaticity” of regulator Nepra’s amended powers.

The government has also given an undertaking to make adjustments in gas tariff and not to consider any tax exemption or tax amnesty in future. Also, the IMF made it part of the programme conditions to have detailed audit of the funds allocated for combating Covid-19 :(( , including contracts and beneficial ownership of bidding results, including medical supplies.
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Re: Pakistani Economic Stress Watch

Post by Pratyush »

ArjunPandit wrote:
Manish_P wrote:What happens at the ground level is the same as at the national level...

Profiting off the poor, one small loan at a time
wait what! in a way that is also asset creation

The most interesting part of the story is that the sisters took the loan for the offspring of the brother.

Is male circumcision a responsibility of the sisters of the father??
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Re: Pakistani Economic Stress Watch

Post by chetak »

Cyrano wrote:Excellent catch K Mehta.

Not just our NSA but I hope all our GoI agencies dealing with Pak are aware of this barely hidden reality of the Pak Establishment. They own the country and will never let go of it because they have the money and the guns too.

read the book Military Inc. by ayesha siddiqa on the businesses of the paki army.

she had a revised edition out some time ago
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Re: Pakistani Economic Stress Watch

Post by Vips »

Pakistan's economic endurance hinges on China's assistance despite IMF loan, finds report.

Pakistan is set to to meet a dozen conditions in six months to stay in the USD 6 billion IMF programme, but the cash-strapped country's economic endurance still hinges on a USD 11 billion lifeline from China, according to a media report on Friday.

The Washington-based international lender on Thursday released its staff level report of the USD 6 billion programme, confirming that the government was in process of increasing electricity prices by Rs 5.65 per unit or 36 per cent from now till October, The Express Tribune newspaper reported.

This increase will put an additional burden of Rs 884 billion on the consumers by June 2023, :mrgreen: according to the circular debt management plan, which the Cabinet approved last month as part of the actions to meet the conditions set by the International Monetary Fund, the report said.

Additionally, the government will slap new taxes equal to 1.1 per cent of GDP or around Rs 600 billion in June as part of the IMF condition, it said. These conditions are among 11 actions that the government will take by September this year.

They are in addition to the five prior actions that the government took to convince the IMF board to approve its case. The government is implementing these actions to remain in the USD 6 billion IMF programme but at the same time, the report shows that Pakistan's external
financing needs are still largely met by continued support from its all-weather ally, China. Arrah-Hu-Ching Ping

The country's gross external financing needs - the funds that it needs to pay off foreign loans and finance its imports amount to USD 27 billion over the next 12 months, according to the IMF. :rotfl:

These financing needs will be met by support from China's USD 10.8 billion, the UAE's USD 2 billion, the World Bank's USD 2.8 billion, the G-20's USD 1.8 billion initiative, the Asian Development Bank's USD 1.1 billion, and the Islamic Development Bank's USD 1 billion, Pakistan informed the IMF. (Pakistan ke kitne abbu - Joh paise de woh sabh line mein kadhe hai abbu :D )

The finance ministry told the IMF that key bilateral creditors had maintained their exposure to Pakistan in line with programme financing commitments.

However, Saudi Arabia has already withdrawn the USD 3 billion it had committed.

China has maintained its exposure by renewing and augmenting the CYN (yuan) 30 billion, (about USD 4.6 billion) three-year bilateral currency swap”, the report confirmed. The newspaper had previously reported that China had increased the size of bilateral currency swap from USD 3 billion to USD 4.5 billion to help Pakistan pay o Saudi loans.

The IMF report further read that China had renewed the maturing commercial loans as part of the programme financing assurance commitment. China rolled over USD 2.5 billion commercial loans in this fiscal year and also plans to extend USD 4.4 billion in the next fiscal year. The IMF report stated that China had also provided an additional USD 1 billion deposit in July 2020, raising the State Administration of Foreign Exchange (SAFE) deposits to USD 4 billion (Paki Balls firmly in Chinese hands to be squeezed at leisure)
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Re: Pakistani Economic Stress Watch

Post by Aditya_V »

Paki rupee has recovered to nearly 2:1 with the Indian ruppee , well done Imran Khan and Bajwa. Pakistan is doing very well, rather than a natural 2.5:1 at this time.
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Re: Pakistani Economic Stress Watch

Post by mody »

https://www.msn.com/en-in/news/world/re ... d=msedgntp

Over $20 Billion remittance received over the last 10 months.
g.sarkar
BRF Oldie
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Joined: 09 Jul 2005 12:22
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Re: Pakistani Economic Stress Watch

Post by g.sarkar »

https://bcfocus.com/pakistan-china-news ... an-relief/
Pakistan China News: Pakistan begs China to cancel electricity debt China refuses to grant loan relief
bcfadmin May 31, 2021
Strong points:

The Chinese dragon, who described Pakistan as its “iron brother,” is now on display. Pauper Pakistan asked China to restructure its $ 3 billion debt China rejected Pakistan’s request and said Islamabad will not change conditions
The pole of the Chinese dragon, which calls Pakistan its “iron brother”, is now visible. Pakistan, which is going through the condition of poverty, had asked China to restructure its $ 3 billion debt. China has rejected this request from Pakistan. In fact, Pakistan wanted China to forgo the loan granted for the energy project built under the CPEC.
According to the Asia Times report, China has invested around $ 19 billion in the power plant built in Pakistan. China has rejected Pakistan’s request to reconstitute the energy purchase deal and said any debt relief would force Chinese banks to change their terms and conditions. Chinese banks are not ready to change the terms of the earlier deal with the Pakistani government.
Bilawal Bhutto lashed out at Imran Khan, says – Pakistan has become a slave, PM is begging for a bowl
Pakistan’s encumbered debt in danger of default
Nauman Wazir, senator and industrialist for Pakistani Prime Minister Imran Khan’s PTI party, said when the National Electric Power Regulatory Authority allowed the private sector to generate power, the tariff was kept very high at this moment. He said it came to light in an investigation regarding Pakistan’s power sector. Under the weight of debt, Pakistan risks defaulting.
As of December 30, 2020, Pakistan had a total debt of $ 294 billion, or 109% of its total GDP. Economic experts say this debt-to-GDP ratio can reach 220% by the end of 2023. This is the year in which Imran Khan’s five-year government will end. Imran Khan had promised during the election campaign before taking power that he would create a new Pakistan that would not ask the world to go into debt.
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Gautam
anupmisra
BRF Oldie
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Re: Pakistani Economic Stress Watch

Post by anupmisra »

More on paki debt. Here's a link to the debt-clock to keep track.

Pakistan’s National Debt Clock: Find Out Who’s Bailing Them Out
Read more at: https://commodity.com/data/pakistan/debt-clock/
The government of Pakistan only recognizes the debt issued by its own Debt Office as part of the country’s national debt. The following types of debt are not included in Pakistan’s national debt:

- Debt accumulated by the provinces and territories of the country
- Local government debts
- Public sector agencies and service provider debts

The above public sector debts like railway, water, and port authority works, are only included as part of the national debt if the works are financed by the federal government of Pakistan.

Other Government Debt Sources Not Counted As National Debt:

The government of Pakistan runs a national savings scheme. This is in the form of fixed-term deposits made by members of the public or corporations. The deposits are recorded with the issue of a bond and each bond pays interest. However, these bonds are not included in the national debt figures of the country because, in the case of holding savings, the government is acting as a guardian of other people’s money rather than as a borrower. Water and Power Development Authority issues bonds, which are known as WAPDA bonds. Although WAPA is a public institution, the government does not count these bonds as part of the national debt.
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