Pakistani Economic Stress Watch

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Bart S
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Re: Pakistani Economic Stress Watch

Postby Bart S » 16 Oct 2018 12:32

^^The video also says that when they tested their nukes and were under sanctions, Saudis (no doubt due to the 'Islamic Bomb' angle) agreed to a secret deal to give them oil on deferred payments (violating the sanctions) and the Pakis promptly went and bragged about that to the IMF/USA causing the Saudis much embarrassment. Of course those were the days when the Pakistan was the West's blue eyed boy, so probably all parties got away scot free.

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Re: Pakistani Economic Stress Watch

Postby Bart S » 16 Oct 2018 12:35

sanjaykumar wrote:Arm in arm, Niazi and Qureshi go abegging for alms and arms. What a tamasha.



Sorry, couldn't resist. :mrgreen:

An English folk song that describes Pakistan's national philosophy so well that it should be their national anthem (just replace 'providence' with Allah):


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Re: Pakistani Economic Stress Watch

Postby sanjaykumar » 17 Oct 2018 03:05

There’s a certain sly wisdom to folk literature which sophisticates may miss. That’s a good one.

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Re: Pakistani Economic Stress Watch

Postby g.sarkar » 19 Oct 2018 01:55

https://www.dawn.com/news/1439408/why-p ... -and-again
Why Pakistan will go to the IMF again, and again and again
Shahrukh Wani October 16, 2018
Pakistan’s formula for economic growth is as flawed as it gets: borrow foreign currency-denominated loans, build some large-scale infrastructure, get a minor growth spurt in the process, and wait until this growth spurt fades so we can repeat the process again.
This is what the previous government did. And, the one before that. It could have worked if, while borrowing to build infrastructure, it did not ignore the underlying constraints to growth and productivity. Because they did not do that, Pakistan has ended up with an increasing level of debt, a balance of payment crises, and a government struggling to keep the growth spurt going. When these challenges become dire — Pakistan often ends up getting a loan by the International Monetary Fund (IMF). This time, if we’re successful in persuading them which looks to be the case, will be the 22nd occasion we will be loaned capital by the fund since 1958. And, if our public discourse and policies remain the same, we will without doubt keep knocking at IMF’s door every few years (or some other lender for that matter).
.....
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Re: Pakistani Economic Stress Watch

Postby Trikaal » 25 Oct 2018 13:31

https://www.ndtv.com/world-news/imran-k ... an-1937138


Pakistan "Out Of Pressure" Thanks To $6 Billion Saudi Loan: Imran Khan
World ANI

Imran Khan indicated that "more good news" is in store, as Pakistan is in talk with two more "friendly nations".
Updated : October 24, 2018 23:12 IST
Imran Khan criticised the preceding government for their financial condition

Islamabad: Pakistan Prime Minister Imran Khan thanked Saudi Arabia for easing the pressure on Pakistan by extending financial help to the cash-strapped nation.
"My Pakistanis, today I am here with a good news for all of you. We were facing really hard times. We were highly pressurised into paying heavy debts. But thanks to Saudi Arab's extension of assistance, we are out of the pressure," he said during a public address on Wednesday.

Mentioning that the nation was "at the brink of becoming defaulters" due to limited resources, Imran Khan continued, "We had two options; either go to International Monetary Fund (IMF) or seek help from friendly countries. If we had gone to IMF directly, we'd have had to borrow more money and that would have meant stricter conditions which would crush our poor strata of society. But now we are in a better position."

He further indicated that "more good news" is in store, as Pakistan is in talk with two more "friendly nations".

Mr Khan also stated that Pakistan will be acting as a mediator in the on-going crisis of Yemen so as to "unite the Muslim World".

Launching a scathing attack at the preceding Pakistan governments, Imran Khan claimed that the governments had "accumulated Pakistan's debts from Rs. 6,000 billion to Rs. 30,000 billion" in addition to the circular debt of Rs 1,200 billion left behind by the previous government.

He went ahead to outline all the cases of corruption which are emerging and are connected to the former ruling parties during the speech.

Promising "good times ahead", the Prime Minister further said, "Nations do face hard times but these adversities are not there to be intimidated of. I have said this before and I will say this today again; do not worry, have confidence, good times are about to come."

He ended the note by saying, "Let me be very clear, hard times are about dissipated, good times are ahead. There will be a time soon when we will be giving loans to other countries instead of taking one."
loan aaya nhii ki fainknaa chalu.

Anyway, I am sad to see that my prediction came true. I predicted Pakis will go beg to one of their daddies in either US or Saudis and they will bail them out. However, this might be a blessing in disguise because now Imran Khan can continue with his populist measures without being forced into fiscal discipline paving the road for a bigger crisis down the road.

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Re: Pakistani Economic Stress Watch

Postby nam » 25 Oct 2018 17:04

Good news. I was worried they will get the IMF bailout.

In return Paks would be expected to send LeT and uniformed-LeT types to Yemen & Syria as cannon fodder. Also take up fist fights with Iran. Which is good news overall.

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Re: Pakistani Economic Stress Watch

Postby Manish_P » 25 Oct 2018 17:38

In return Paks would be expected to send LeT and uniformed-LeT types to Yemen & Syria as cannon fodder.


Which, thanks to their exponentially increasing awaam, has not been a big problem for the uniformed Jernails and the non-uniformed mullahs

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Re: Pakistani Economic Stress Watch

Postby Vips » 25 Oct 2018 18:08

nam wrote:Good news. I was worried they will get the IMF bailout.

In return Paks would be expected to send LeT and uniformed-LeT types to Yemen & Syria as cannon fodder. Also take up fist fights with Iran. Which is good news overall.


More important they wont feel the urgency of doing the structural reforms which if implemented could set the pakis on the right path. Now the same old same old will happen and in the next 2-3 years the same begging bowl will be on displayed by the bhikaris the world over.

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Re: Pakistani Economic Stress Watch

Postby ArjunPandit » 25 Oct 2018 23:06

^^heads they shoot themselves, tails they blow themselves up

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Re: Pakistani Economic Stress Watch

Postby Trikaal » 26 Oct 2018 01:38

nam wrote:Good news. I was worried they will get the IMF bailout.

In return Paks would be expected to send LeT and uniformed-LeT types to Yemen & Syria as cannon fodder. Also take up fist fights with Iran. Which is good news overall.

What makes you think they won't go to the IMF? They still need money. This is just deferred pay on oil. Now, they will need a smaller loan from IMF amd the conditions will be less severe. But still they will have to go to IMF (unless China decides to chip in ofc).

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Re: Pakistani Economic Stress Watch

Postby disha » 29 Oct 2018 22:42

Bakistan has entered into stagflation territory:

https://tribune.com.pk/story/1824640/1-imf-projects-inflation-rate-hit-14-june/

IMF projects that Bakistan will hit an inflation rate of 14% inflation rate by June 2019. Zero growth & high inflation., it will be quite a spectacle to see Baki go venezuela way.

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Re: Pakistani Economic Stress Watch

Postby g.sarkar » 30 Oct 2018 17:52

https://economictimes.indiatimes.com/ne ... content=19
Pakistan's 'penniless billionaires' expose money laundering frenzy
Oct 28, 2018
It took rickshaw driver Mohammad Rasheed a year to save 300 rupees to buy his daughter a bike, so when he found three billion rupees ($22.5 million) had passed through an unused bank account in his name, he was stunned ... and scared.
"I started sweating and shivering," said the 43-year-old -- just the latest victim of a money laundering scheme that Pakistan's new prime minister, Imran Khan, has vowed to crush. When he got a call from the Federal Investigation Agency, Rasheed's first inclination was to go into hiding, but friends and family members finally convinced him to cooperate with officials.
His case mirrors dozens of similar stories in recent weeks that have filled newspapers in Pakistan and riled a populace long accustomed to extravagant tales of corruption and theft. The incidents follow a similar arc -- bank accounts in poor residents' names are flooded with cash, then suddenly emptied in a laundering scheme that has likely seen hundreds of millions of dollars moved out of the country.
Rasheed's name was eventually cleared, but his anxiety remained.
.....
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Pakistani Economic Stress Watch

Postby Peregrine » 31 Oct 2018 14:53

11 profitable entities short listed for sell-off - Shahbaz Rana

ISLAMABAD: In a major development, the government has decided to privatise only 11 entities – almost all profitable ones – and dropped all bleeding companies like Pakistan International Airlines (PIA) and the Pakistan Steel Mills (PSM) from its active list of privatisation.

The government’s decision to either exclude or put on the backburner the privatisation of all loss-making entities is primarily aimed at protecting its political capital, which could have been at stake due to any unpopular decision.

It also put off the privatisation of nine power distribution and five generation companies.

The Privatisation Commission Board on Tuesday approved the new short to medium-term privatisation programme. Privatisation Minister Muhammad Mian Soomro chaired the first board meeting.

PIA privatisation a bad idea, says CEO Naturally - The PIA will remain inefficient as well as a "CASH COW" to boot!

The board’s recommendations will now be placed before the Cabinet Committee on Privatisation that is expected to meet today (Wednesday) under the chairmanship of Minister for Finance Asad Umar.

The approved list of the Council of Common Interests –the highest constitutional body – contained 62 enterprises selected for privatisation.

Out of these, the board recommended to retain only 11 for active privatisation to be completed in the next three years.

However, it put the privatisation of another 24 enterprises on the backburner and dropped 29 loss-making companies from the privatisation programme, according to the officials of the Commission.

“The government wants to sell the profitable enterprises first to earn money,” said Soomro after the board meeting. “The privatization list has been proposed to be shortened,” he added.

Active privatisation list

The board recommended privatising four banking and insurance companies, three oil and gas sector companies, two LNG-fired recently constructed power plants, two hotels owned by PIA and one real estate sector transaction.

The board approved strategic sale of the loss-making SME Bank Limited, the First Women Bank Limited, and the Pakistan Reinsurance Company Limited.

It also approved to divest the shares of the State Life Insurance Corporation on the stock exchange.

The board approved three capital market transactions of the Oil and Gas Development Corporation Limited, the Pakistan Petroleum Limited and the Mari Petroleum Limited.

There was a striking similarity between the Pakistan Muslim League-Nawaz’s (PML-N) privatisation programme and the proposed plan of the PTI. The last government had undertaken six transactions –and five of them were divestment of the profitable entities at the stock exchange.

The board also approved strategic sale of 1,233 megawatts Balloki Power Plant and 1,230MW Haveli Bahadur Power Plant in the short term. It also approved strategic sale of the PIA Roosevelt Hotel in New York and the Scribe Hotel in Paris within next three years.

The board approved sale of assets of the Convention Centre Islamabad in the short-term.

Sources said the PC board members questioned government’s strategy for retaining the loss making enterprises. The decision has been taken despite the fact that the PSEs debt and liabilities surged to Rs1.3 trillion in the last fiscal year –higher by one-fourth in just one year, according to the State Bank.

The sources said the Privatisation Commission officials informed the board that if the government undertook privatisation of difficult entities like the PSM and the PIA, it could derail the entire privatization programme.

Dropped from privatisation

The PC board recommended delisting 29 companies from the list. It has excluded heavily loss making PIA. The Civil Aviation Authority has also been proposed to be de-listed. Similarly, the PSM –another loss making enterprise – has been proposed to be dropped from the privatization list.

The National Bank of Pakistan, the Industrial Development Bank Limited and the House Building Finance Corporation have also been excluded. In the oil and gas sector, the Pakistan State Oil, the Sui Northern Gas Pipelines Limited and the Sui Southern Company Limited have been recommended to be dropped.

As many as 19 industrial units would be excluded from privatisation.

These are the National Fertilizers Corporation, the Pakistan Engineering Company, the Pakistan Industrial Development Corporation, Moafco industries, the State Engineering Corporation, the Sindh Engineering Limited, the Republic Motors Limited, the Pakistan Machine Tool Factory, the Pakistan Industrial and Technical Training Centre, the Export Processing Zone Authority, the Heavy Electrical Complex and the Pakistan Steel Fabricating Company.

The board has also proposed to de-list the Pakistan Mineral Development Corporation Limited, the Lakhra Coal Mines, Services International Hotel Lahore, Pakistan Railways, Port Qasim Authority, the Pakistan National Shipping Corporation and the Karachi Port Trust.

Abbasi gives go-ahead to PIA, PSM privatisation

Enterprises put on hold

It endorsed the proposal to delay privatisation of 24 enterprises, nearly all of them causing huge annual losses. These include nine power distribution companies and five power generation companies.

The last PML-N government had done significant paperwork on the power sector that would now go waste. Privatisation of the Utility Stores Corporation of Pakistan has also been delayed. Privatisation of the National Investment Trust Limited and the National Insurance Company Limited is also deferred.

The National Highway Authority, the Telephone Industries of Pakistan and privatisation of the remaining 62.2% stakes of the Pakistan Telecommunication Limited have been delayed. The government also put sale of the National Construction Limited and the Printing Corporation of Pakistan on the backburner.

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Re: Pakistani Economic Stress Watch

Postby Trikaal » 31 Oct 2018 20:37

Hahaha, Pakis just keep finding ways to cut off their noses. They are selling revenue makers and keeping loss-makers!!! This is Naya Pakistan :rotfl:

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Re: Pakistani Economic Stress Watch

Postby Prem » 01 Nov 2018 02:29

disha wrote:Bakistan has entered into stagflation territory:

https://tribune.com.pk/story/1824640/1-imf-projects-inflation-rate-hit-14-june/

IMF projects that Bakistan will hit an inflation rate of 14% inflation rate by June 2019. Zero growth & high inflation., it will be quite a spectacle to see Baki go venezuela way.


Inshallah , My dream of 500 million influenza and dementia suffering Bookhey, Nange, Pyase Beggar Paki coming true in 2 decades. I don't want Pakistan to disintegrate before they accomplish this feat of high HDI. Let world see what real Izlam feel and look like.

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Re: Pakistani Economic Stress Watch

Postby Manish_P » 01 Nov 2018 08:30

Peregrine wrote:
The government’s decision to either exclude or put on the backburner the privatisation of all loss-making entities is primarily aimed at protecting its political capital, which could have been at stake due to any unpopular decision.

It endorsed the proposal to delay privatisation of 24 enterprises, nearly all of them causing huge annual losses. These include nine power distribution companies and five power generation companies


Sir, Does the fauj have a big stake / control of these entities?

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Re: Pakistani Economic Stress Watch

Postby g.sarkar » 01 Nov 2018 10:29

https://www.dawn.com/news/1442378
Pakistan's debt policy has brought us to the brink. Another five years of the same is unsustainable
PTI has been dealt a tough hand but we can't afford to see the party fail.
Uzair Younus
Pakistan is facing an economic crisis and the previous governments’ disastrous policies have indebted the country for generations to come.
This has been the rhetoric of the Pakistan Tehreek-i-Insaf (PTI) government and its senior leadership, including Prime Minister Imran Khan.
And while die-hard PTI supporters, like those of other political parties, blindly believe the rhetoric of their party, some remain on the fence, mainly because the government and its spokespersons have only shared absolute numbers and have failed to present comparative data to cement their claims.
In the absence of conclusive summary data, I had to scour through the documents available on the State Bank of Pakistan’s (SBP) website, particularly the latest annual report on the state of the country’s economy.
The evidence from this data is conclusive: the last 10 years have seen a continuous and significant deterioration in Pakistan’s debt sustainability, and decades of economic mismanagement bears the blame.
Before jumping into the analysis, a disclaimer on economies and their tendency to borrow. All economies in the world, from the most advanced industrial economies, like the United States and Japan, to those endowed with vast natural resources, like Saudi Arabia and Venezuela, borrow money.
There is nothing wrong with a country floating bonds, financing infrastructure projects through long-term debt instruments, and using capital markets, both domestic and external, to meet its financing needs. In fact, the PTI will also rely on borrowing during its term, and the absolute value of total debt will certainly continue to increase in the coming months and years. What is important, however, is for countries to follow a carefully calibrated borrowing policy that minimises the various risks associated with taking on additional debt, such as interest rate and refinancing.
In simple terms, if a country’s policymakers decide to borrow significant sums of money, they better be sure that they can pay back or rollover these loans in the medium- to long-term. If they fail to take this into account, they find themselves facing economic instability, and may eventually have to go to the International Monetary Fund (IMF).
Economic analysts, central bankers and government policymakers rely on various indicators to measure risk exposure and debt sustainability. Examples of these indicators are:
Total government domestic debt as a percentage of Gross Domestic Product (GDP), which essentially shows how much a government owes to domestic creditors as a percentage of the annual output of the economy;
Total government external debt as a percentage of GDP, which essentially shows how much a government owes to international creditors as a percentage of the annual output of the economy;
Time to maturity of news loans, which shows how soon the loans must be paid back or refinanced; and
Whether the loans are on fixed or floating interest rates.
From 2008 to 2018, Pakistan’s position worsened across all these indicators, and little to no effort was made by the Pakistan People’s Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) governments to sustainably deal with the country's addiction to loans and bailouts.
At the same time, it is important to note that the technocrats of the Musharraf era fared no better. In fact, one could argue that they performed even worse, as they failed to take advantage of the economic benefits showered upon Pakistan following 9/11, which included the rescheduling of the Paris Club debt in December, 2001. By 2007, the country was facing an economic meltdown, and one must view the 2008-2018 period, and the performance of the PPP and the PML-N, within this context.
....
Gautam

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Pakistani Economic Stress Watch

Postby Peregrine » 01 Nov 2018 16:32

Peregrine wrote:The government’s decision to either exclude or put on the backburner the privatisation of all loss-making entities is primarily aimed at protecting its political capital, which could have been at stake due to any unpopular decision.

It endorsed the proposal to delay privatisation of 24 enterprises, nearly all of them causing huge annual losses. These include nine power distribution companies and five power generation companies
Manish_P wrote:Sir, Does the fauj have a big stake / control of these entities?
Manish P Ji :

The following Article should answer your query :

CCOP removes PIA, Pakistan Steel from privatisation list - Shahbaz Rana

ISLAMABAD: The Cabinet Committee on Privatisation (CCOP) approved on Wednesday the removal of all labour-sensitive state-owned enterprises from the privatisation programme and also dropped a proposal to divest shares in two blue-chip petroleum-sector companies due to constitutional issues.

The entities that were removed from the privatisation programme included Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) and Pakistan Railways (PR). All these enterprises were consuming huge state funds every year, but the government opted to keep running them.

Headed by Finance Minister Asad Umar, the CCOP approved nearly 10 entities for privatisation in the next one to three years, but made changes in the list forwarded to it by the Privatisation Commission board a day earlier.

PIA debt hits Rs406b, running only on govt support: report

The CCOP ordered the privatisation of Nandipur power plant, Lakhra coal mines and Services International Hotel Lahore – all the three entities that the PC board had recommended for delisting from the privatisation programme.

The committee did not approve the privatisation of Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) due to objections raised by the provinces in light of the 18th Constitutional Amendment, according to officials of the Ministry of Finance who attended the meeting.

The last K-P government had gone to the court against the PML-N government’s decision to divest shareholding in OGDCL. The CCOP asked the Privatisation Commission to seek the nod of the Council of Common Interests (CCI) first before bringing oil and gas companies for privatisation.

Similarly, the CCOP also deferred a decision on the privatisation of Pakistan Reinsurance Company Limited and State Life Insurance Corporation due to objections raised by the Ministry of Commerce.

The cabinet committee also linked the privatisation of nine power distribution companies and five power generation companies with the recommendations to be given by the Prime Minister’s Task Force on Energy.

The cabinet committee approved the revised privatisation programme a week before the start of the International Monetary Fund’s (IMF) visit. The IMF team is arriving next week to hold talks for a second bailout programme in five years.

The originally approved list of Council of Common Interests — the highest constitutional body — contained 62 enterprises for privatisation. Of these, the PC board recommended to retain only 11 for active privatisation to be completed in next three years, put the privatisation of another 24 enterprises on the backburner and dropped 29 loss-making companies from the privatisation programme.

Revised active privatisation list

Out of the four banking and insurance companies that the PC board recommended for privatisation, the CCOP approved privatisation of only SME Bank Limited and First Women Bank Limited. SME Bank is set to be privatised first.

The commerce secretary advised the CCOP to conduct a study before privatising Pakistan Reinsurance Company and State Life Insurance Corporation. He was of the view that these companies had captive markets and should not be sold off.

The CCOP approved the sale of shares of Mari Petroleum Limited at the stock exchange.

It directed the officials concerned to fast-track the privatisation of 1,233-megawatt Balloki power plant and 1,230MW Haveli Bahadur Shah power plant, said the officials.

The CCOP included Lakhra Coal Mines and Nandipur Power Plant in the active privatisation list. The Nandipur plant will be privatised in the medium term, said the Ministry of Finance official.

The committee endorsed the strategic sale of PIA Roosevelt Hotel New York and Scribe Hotel Paris within the next three years. It also approved the sale of assets of Convention Centre Islamabad in the short term.

PIA privatisation a bad idea, says CEO

On the desire of PM Adviser on Commerce Abdul Razak Dawood, the CCOP deferred a decision on the privatisation and delisting of industrial enterprises. Dawood sought time to review financial and administrative positions of the industrial-sector companies, said the officials.

Excluding the industrial-sector and a couple of energy firms, the CCOP approved the delisting of the remaining enterprises, recommended by the PC board, said the officials.

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Re: Pakistani Economic Stress Watch

Postby disha » 02 Nov 2018 01:36

Prem wrote:Inshallah , My dream of 500 million influenza and dementia suffering Bookhey, Nange, Pyase Beggar Paki coming true in 2 decades. I don't want Pakistan to disintegrate before they accomplish this feat of high HDI. Let world see what real Izlam feel and look like.


^InshaPulao and Pulao-Ho-Akbar., may your wishes come true earlier than that.

I do feel that somebody should build out containers with amenities like pakistan in that container to house say 30 persons comfortably and ship those containers to S. Barbaria. At least 1000 containers should show up in ports across S. Barbaria daily (it is big) and safe passage provided to the heart land of S. Barbaria. Operation should continue for at least 3 years.

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Pakistani Economic Stress Watch

Postby Peregrine » 03 Nov 2018 04:48

X Posted on the Terroristn Thread

Cash-strapped Pakistan at ´low point´, PM tells China

Beijing: Pakistan´s financial woes have dragged the country down to a "low point", its prime minister told Chinese President Xi Jinping Friday, as he seeks funds from Beijing to stave off a fiscal crisis.

Before travelling to China -- one of Pakistan´s firmest allies -- Imran Khan said that he was striving to obtain financial aid from two unnamed countries after Pakistan secured $6 billion in funding from Saudi Arabia.

His government has also entered talks with the International Monetary Fund over a potential bailout as it grapples with a balance of payment crisis and current account deficit.

Greeted by Xi at the Great Hall of the People in Beijing, Khan said he had come to "learn" from China´s experiences in combatting poverty and corruption.

"Unfortunately we have inherited a very difficult economic situation," Khan said.

"Countries go in cycles. They have their high points, they have their low points. Unfortunately our country is going through a low point at the moment," he said.

Xi said he attached "great importance to China-Pakistan relations" and was "willing to work together with the prime minister to strengthen China-Pakistan´s all-weather strategic partnership and build a new era of China-Pakistan destiny."

But neither leader announced any deals. Khan will meet with Chinese Premier Li Keqiang on Saturday and will attend a massive import expo hosted by Xi in Shanghai next week.

The two countries are building the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar project at the heart of Xi´s Belt and Road Initiative, an ambitious trade infrastructure programme spanning the globe.

The corridor aims to increase energy and transport links between the western Chinese region of Xinjiang with the Arabian Sea via Pakistan.

However, given Pakistan´s deteriorating finances, in recent months there have been concerns that portions of the agreement may have to be scaled down.

Analysts said Khan would push for financial assistance from Beijing, an important creditor of Pakistan, during the visit.

Since taking power in August, Khan has sought loans from "friendly" countries like Saudi Arabia, vowed to recover funds stolen by corrupt officials, and embarked on a series of populist austerity drives to raise cash.

Pakistan has gone to the IMF repeatedly since the late 1980s.

The last time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis.

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Re: Pakistani Economic Stress Watch

Postby Trikaal » 03 Nov 2018 14:19

https://m.timesofindia.com/world/pakist ... 486262.cms

China says more talks needed on economic aid for Pakistan

BEIJING: China will provide Pakistan with economic aid but more talks will take place to fix the details, a senior Chinese diplomat said, after new Pakistani Prime Minister Imran Khan met Chinese Premier Li Keqiang on Saturday.

Pakistan's foreign reserves have plunged 42% since the start of the year and now stand at about $8 billion, or less than two months of import cover.

Last month, Pakistan received a $6 billion rescue package from Saudi Arabia, but officials say it is not enough and the country still plans to seek a bailout from the International Monetary Fund (IMF) to avert a balance of payments crisis.

It would be Pakistan's 13th rescue package from the multilateral lender since the late 1980s.

Speaking to reporters in Beijing's Great Hall of the People following Khan's talks with Li, Chinese Vice Foreign Minister Kong Xuanyou said his country would help.

"During the visit the two sides have made it clear in principle that the Chinese government will provide necessary support and assistance to Pakistan in tiding over the current economic difficulties," Kong said.

"As for specific measures to be taken, the relevant authorities of the two sides will have detailed discussions," he added, without giving details.

Khan told Chinese President Xi Jinping the previous day that he had inherited "a very difficult economic situation" at home.

Though China is Pakistan's closest ally, Khan's newly elected government has sought to re-think the two countries' signature project, the $60 billion China-Pakistan Economic Corridor (CPEC), which Beijing touts as the flagship infrastructure programme in its vast Belt and Road Initiative.

Pakistan has looked to amend CPEC to put greater emphasis on projects that focus on social development, rather than purely on infrastructure.

Kong said there would be no change in the number of projects under CPEC.

"There is no change at all. If there were, it would only be to increase, not decrease" the number of projects, he added.

However the scope of the project would increase and will tilt in favour of people's livelihoods, Kong said, also without elaborating.

After visiting Beijing, Khan is set to be a key note speaker at a major import fair in Shanghai, an event that China hopes will show the world the country welcomes foreign companies and their products.


Diplomatic jargon for: "If you want more money, show us some more skin" :rotfl:

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Re: Pakistani Economic Stress Watch

Postby nam » 03 Nov 2018 14:42

Chinis are realizing they are been taken for a ride or something they want is not been given..

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Re: Pakistani Economic Stress Watch

Postby Vips » 18 Nov 2018 01:15



Saudi Arabia has not transferred yet a single $ to pakistan even 3 weeks after promising billions. In earlier bail out cases the $$ were immediately transferred by Saudis to the Federal Reserve linked accounts of Pakistan in the US.


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Re: Pakistani Economic Stress Watch

Postby sudhan » 19 Nov 2018 16:18

So the Paki cricketers, successfully strapped on and detonated their soosai vests to a chorus of AoAs..

Mass media equipment sales will spike as now is the time to smash TV sets, shoot up DTH antennae and crush set to boxes..

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Re: Pakistani Economic Stress Watch

Postby Virendra » 20 Nov 2018 15:50

disha wrote:Bakistan has entered into stagflation territory:

https://tribune.com.pk/story/1824640/1-imf-projects-inflation-rate-hit-14-june/

IMF projects that Bakistan will hit an inflation rate of 14% inflation rate by June 2019. Zero growth & high inflation., it will be quite a spectacle to see Baki go venezuela way.

Paki economic stress increases chances of "rogue" elements messing up with India. Paki deep state also knows that one more 26/11 level incident will not be tolerated by India. Pressure on all fronts means Paki nerves would break.
Would be interesting to watch what happens then. They might try to set us up into a situation where they can claim they didn't do squat and India thrust a war on them.

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Re: Pakistani Economic Stress Watch

Postby VKumar » 21 Nov 2018 00:19

Elections also approaching. Can be an additional reason for a Paki misadventure.

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Re: Pakistani Economic Stress Watch

Postby Vips » 29 Nov 2018 19:35

Troubles ahead: Balance of payments crisis appears far from over.

Pakistan’s balance of payments crisis seems far from over, as its net international reserves are negative $4 billion even after excluding the International Monetary Fund debt obligations, suggest latest figures released by State Bank of Pakistan (SBP).

The SBP’s up to one year obligations exceed its gross official foreign currency reserves by at least $4 billion. Against $8.2 billion gross official reserves as of last week, the SBP’s short-term liabilities stand at nearly $12.2 billion. :D

The current gross official $8.2 billion reserves are largely maintained by taking short-term loans from commercial banks and taking Chinese and Saudi deposits under the currency swap arrangements.

As of September this year, the central bank borrowed $7.22 billion from commercial banks under the forward and currency swap arrangements, according to data that SBP released on Wednesday. The central bank was required to return $1.5 billion within one month, $3.2 billion in two months and remaining $2.6 billion up to one year, according to the official data.

The commercial banks swap deals are signed in the range of 2.5% to 4% interest rates, according to the banking sector sources.

In addition to this, SBP owes $3 billion to China, $1 billion to Saudi Arabia and $700 million to other sources, according to the sources. Around $453 million were to be repaid to the IMF in this fiscal year, which will be a direct charge on the SBP reserves.

This has resulted into negative $4 billion foreign currency reserves.

According to the IMF’s standard definition of the Net International Reserves (NIR), the central bank’s reserves would be negative $9.7 billion after including its total $6 billion obligations. But the IMF’s $6 billion repayments are spread over next five years, therefore, all the amount cannot be excluded against short-term liabilities of the central bank.

At the end of the Pakistan Muslim League-Nawaz (PML-N) tenure, the SBP’s foreign currency swap position was $6.7 billion.

“The $7.22 billion foreign currency swaps must have been avoided due to the country’s bad experience in late 1990s,” said former finance minister Dr Hafiz Pasha. He said that the then government had to pay the foreign currency deposit holders in rupee at a premium rate after it exhausted their deposits.

In 1998, the then PML-N government had consumed foreign currency deposits of commercial banks after global powers imposed sanctions on Pakistan in retaliation to nuclear bomb explosions.

The $7.22 billion loans have been obtained by the central bank from commercial banks under F-25 and F-3 circulars, taking benefits of the foreign currency deposits of Pakistanis as well as foreign nationals, according to the sources in the banking sector.

The loans obtained under F E-25 circular are also shown part of both the central bank and commercial banks’ reserves. This is tantamount to double-booking of the currency reserves. Few months ago, Dr Asfhaque Hasan Khan, now a member of the Economic Advisory Council, had also termed the SBP’s foreign currency swaps deal as double booking. He had suggested that the swaps should have been excluded from the commercial banks’ reserves.

After receiving commitments from the friendly countries, Finance Minister Asad Umar had said that Pakistan’s balance of payments crisis was over. Prime Minister Imran Khan had also endorsed the finance minister’s statement in a cabinet meeting.

So far only Saudi Arabia had given firm commitments for providing $6 billion lifeline. The commitments from United Arab Emirates and China were still unclear. There is high possibility that China may rollover its $3 billion safe deposits that are due by end of this fiscal year. Pakistan’s talks with the IMF for a bailout package also failed, as both the sides could not converge on the main thorny issues including provision of data related to Chinese public and publically guaranteed debt.

In an interview with the Bloomberg on Wednesday, the finance minister said the government was not in a hurry to obtain a bailout package from the IMF to boost the country’s foreign exchange reserves. The wire agency quoted the minister as saying that, “We aren’t in a hurry. We are covered even if it delays for two months.”

There was a massive increase in contracting short-term loans after the expiry of the last IMF programme in September 2016. During its three-year programme, the IMF had kept Pakistan under check by placing two main conditions. One was related to the Net International Reserves that is calculated by excluding the impact of currency swap loans. The other was on reducing the short-term loans obtained under currency swap arrangements.

When the IMF programme ended, the forward and currency swap-related obligations of the SBP amounted to negative $765 million in September 2016. In two years, these obligations swelled by almost ten times.

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Re: Pakistani Economic Stress Watch

Postby Vips » 29 Nov 2018 19:39

Meanwhile self proclaimed corporate hot shot Asad Umar says All ij well.

Finance Minister Asad Umar has said that Pakistan can wait two months before deciding on an IMF programme.

“We aren’t in a hurry,” he is quoted by Bloomberg in a report, words that echo remarks he began making publicly even while the IMF negotiations were under way. “We are covered even if it delays for two months.” (Clearly it is the Saudi $3 billion that has given the cushion for 3 months, after the Saudi $3 Billion will be exhausted it will be the begging bowl to IMF, till then enjoy) :lol: .

The remarks were made on the sidelines of a conference being held in Islamabad. A month’s delay would push the start of any programme to the end of January. In his earlier remarks, he had hinted at mid-January as the date they were looking at for the board’s approval of a programme.

“We still want to have the programme,” he told Bloomberg. “But we’re not in a hurry to have it. It will ease and open up other funding avenues.”

The government is looking to bilateral assistance from “friendly countries” to help plug a $12 billion hole in the external accounts. Help from Saudi Arabia began arriving last week as $1 billion from a committed $3bn of cash support landed in the State Bank’s coffers. An additional oil facility worth $3bn more is also on the cards, according to government announcements.

In addition, the government is continuing talks with the Chinese, though thus far without any announced outcome. Those talks began when Imran Khan made his maiden visit as prime minister to Beijing earlier this month, where the Chinese authorities promised a “new chapter in cooperation” between the two countries, and Premier Li Keqiang said Beijing was open to providing assistance to Pakistan “but more talks are needed” first. Those additional talks are still continuing.

Subsequent visits to the UAE and Malaysia by the prime minister have not, thus far, yielded concrete evidence of balance of payments support, but the government remains hopeful that further assistance is in the pipeline.

Mr Umar is also looking to tap funding lines from the World Bank, Asian Development Bank as well as private markets in the months to come. This multilateral support, and the private inflows it makes possible from global markets, is helped along if the country is in an IMF programme.

According to recent media reports, the government and IMF failed to reach a conclusion in recent talks because the pace of adjustment being asked for by the Fund was too fast for the government. The reports suggest the IMF asked for the exchange rate to be free floated and power sector liquidity issues to be resolved by passing the weight of the losses onto the consumers. This would result in a sharp power tariff hike, something the government wants to avoid at the outset of its term.

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Re: Pakistani Economic Stress Watch

Postby arun » 30 Nov 2018 17:09

X Posted from the Terroristan thread.

anupmisra wrote:Not long before 1 Ind. Rupee = 2 Toi. Rupee.


It has happened :rotfl: PKR hits 144 to the US Dollar while the INR is a whisker below 70 to the USD. News on the collapse of the PKR:


Rupee nosedives 7.5% to record low at Rs144 in inter-bank


Meanwhile regards the INR:

Rupee Climbs 21 Paise To Hit 3-Month High Against Dollar
Last edited by arun on 30 Nov 2018 17:14, edited 1 time in total.

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Re: Pakistani Economic Stress Watch

Postby Aditya_V » 30 Nov 2018 17:14

Finally I think Pakistan must to the following to save Forex

1. Shut electricity to all factories and Industry
2. Stop oil consuming Diesel Railway engines
3. Restrict fuel supplies outside contonmants
4. Use firewood instead especially along the.loc.
Last edited by Aditya_V on 01 Dec 2018 10:17, edited 1 time in total.

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Re: Pakistani Economic Stress Watch

Postby Vips » 30 Nov 2018 19:14

It is clear that Pakistani's are bringing the Paki rupee rate below to meet the loan requirements as prescribed by IMF. That is easily done.
What bout the more tricky/contentious IMF pre-requisite that Paki's disclose the details of the Chinese loans and its conditionalities? China will never allow the Pakis to disclose this information. So either the shitistanis have shown their true nature to the Chinese and given all the information or they have disclosed false information and Sialkoti documents to the IMF. It is clear they will cheat either of the two. It has to as there no other way to get that loan.

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Re: Pakistani Economic Stress Watch

Postby anupmisra » 30 Nov 2018 21:40

Aditya_V wrote:Finally I think Pakistan must to the following to save Forex

1. Shut electricity to all factories and Industry
2. Stop oil consuming Diesel engines
3. Restrict fuel supplies outside contonmants
4. Use firewood instead especially along the.loc.


Add to this list:

5. Eat more local grass (if you can find it) and export mole halal meat
6. Build more corridors to fleece the Yindoos by forcing them to stay in paki owned hotels
7. Sell more JF17 bandars and used cars
8. Export more unwashed labor to ammah's brothers
9. Create and sell more PSL teams to unsuspecting foreigners

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Re: Pakistani Economic Stress Watch

Postby Aditya_V » 01 Dec 2018 10:17

You dont think I have the best interest of Pakis at heart, seriously they must give up farming and textiles and concentrate on Meat and Leather Industries, they can easily undercut Indian Industries in Leather.

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Re: Pakistani Economic Stress Watch

Postby yensoy » 01 Dec 2018 15:59

Aditya_V wrote:You dont think I have the best interest of Pakis at heart, seriously they must give up farming and textiles and concentrate on Meat and Leather Industries, they can easily undercut Indian Industries in Leather.


After our self-goal also known as the beef ban, anyone can undercut us in leather sir. It's a miracle milk production is not affected (as I thought it would be), anyway one cannot reason with religious sentiment and maybe this is a good thing after all for dharma.

I'm wondering now... on what basis can we allow high end imported cars with leather upholstery (which obviously - given the large dimensions involved - would have to come from bovine sources). We cannot condone the killing of cows outside the countries either (which is why live animal exports are banned), so the mere fact that the leather was processed abroad does not hold.

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Re: Pakistani Economic Stress Watch

Postby Karan M » 01 Dec 2018 17:08

yensoy, this is not the thread to sit and bemoan about Indian decisions.

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Re: Pakistani Economic Stress Watch

Postby Vips » 01 Dec 2018 21:20

Aditya_V wrote:You dont think I have the best interest of Pakis at heart, seriously they must give up farming and textiles and concentrate on Meat and Leather Industries, they can easily undercut Indian Industries in Leather.


I have been harping on us targeting their exports for a long time. Textile which is the main source of exports/employment in Pakistan and also leather industry to a lesser extent should be systematically targeted by GOI. I am sure there are ways to make the Indian exporters more competitive by giving enhanced duty draw backs and other incentives. We should aim to have more unemployed abduls on the streets by making their exports noncompetitive.

We should now not allow GSP+ status to Paki exports in EU when it comes up for renewal. The rule is it is not granted and held up if the other countries affected by it object to it. MMS and the the shameless Congress party did not and gave it to the pakis on a golden platter.
The B A S T A R D S.

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Re: Pakistani Economic Stress Watch

Postby Prem » 02 Dec 2018 07:06

Pakistan central bank hikes interest rate to 10 percent on inflation fears
https://finance.yahoo.com/news/pakistan ... 27355.html

ISLAMABAD (Reuters) - Pakistan's central bank on Friday hiked key interest rates by 150 basis points to 10 percent and sharply cut growth forecasts, warning that the economy faces mounting headwinds from rising inflation and high current account and fiscal deficits."Continued inflationary pressure (and rising inflationary expectations) needs to be checked," the State Bank of Pakistan (SBP) said in a statement.Average headline inflation during the first four months of the fiscal year 2018/19 (July-June) rose to 5.9 percent compared to 3.5 percent in the corresponding period last year.
"This trend is even more pronounced for core inflation, which indicates growing inflationary pressures in the economy," the SBP said, adding that consumer price inflation is forecast to average 6.5-7.5 percent in 2018/2019, above its target rate of 6 percent.The bank has now hiked rates by more than 4 percentage points since January in a bid to ease widening current account pressures that threaten to trigger a balance of payments crisis.Pakistan is also currently holding bailout talks with the International Monetary Fund (IMF), though these have been delayed.SBP said economic growth will ease to "slightly above 4 percent" in the year to end of June 2019, revising down its September estimate of 5 percent. Last fiscal year the economy expanded 5.8 percent, the highest rate in more than a decade.Earlier on Friday, Pakistan's rupee currency plunged more than 6 percent before paring some of the losses in what dealers said was the sixth currency devaluation by the central bank.

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Re: Pakistani Economic Stress Watch

Postby yensoy » 02 Dec 2018 07:25

Prem wrote:Pakistan central bank hikes interest rate to 10 percent on inflation fears
https://finance.yahoo.com/news/pakistan ... 27355.html

What a load of crap! Inflation? Is it so bloody important that it has to be announced on a Saturday? And how is the country going to be suddenly flush with cash just because of exchange rate fixing, that they have to worry about inflation?

Karan M wrote:yensoy, this is not the thread to sit and bemoan about Indian decisions.

Ok

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Re: Pakistani Economic Stress Watch

Postby chanakyaa » 02 Dec 2018 19:06

More checks coming...

'Instead of hard cash, China to provide multiple bailout packages to Pakistan'
Early November, Prime Minister Imran Khan left for a maiden visit to China. Pakistan was to reportedly receive a $6 billion economic package, during the visit, to reduce its dependence on the International Monetary Fund (IMF).

A week later, Finance Minister Asad Umar announced that Pakistan’s balance of payment crisis was effectively resolved. Of the “$12 billion financing gap, $6 billion have come from Saudi Arabia, and the rest has come from China,” Umar told the press. He further added that a high-level delegation will visit China to work out the modalities.

In an exclusive sit-down with Geo.tv, Mr. Long Dingbin, the Chinese Consul-General (CCG) in Lahore said that “instead of hard cash, China plans to eventually provide multiple forms of bailout packages [to Pakistan], in the shape of phenomenal investments in fresh projects, broadening the area of inclusive cooperation and tapping new avenues of collaboration under the China-Pakistan Economic Corridor.” All of which, he added, would help “boost Pakistan’s economy and overcome its financial crunch.”

Mr. Dingbin spoke at China’s Consulate in Lahore.

China, went on Mr. Dingbin, would never leave Pakistan in lurch and would channelize maximum resources to strengthen its languishing economy.

On asking, what exactly would this financial assistance look like, the Consul-General explained that during Prime Minister Khan’s recent visit to the country, the scope of investment was widened by inking 15 new agreements. These agreements included cooperation in politics, economics, people-to-people contacts and culture links, amongst others.

This communiqué is a guideline, he said, to comprehend new dimensions of strategic partnership and friendship between China and Pakistan.

When asked about Pakistan’s financial survivability and its increasing debt, Mr. Dingbin revealed that among the 22 projects under the CPEC, only four carried concessional loan. “The rest of 18 are investment-based and the CPEC projects do not increase Pakistan's debt burden.” On the contrary, he said, these projects would unleash their economic benefits and turnaround Pakistan’s economy.

Sitting next to Mr. Dingbin was the deputy consul general, Peng Zhengwu. The interview was arranged a few days after terrorists attempted to attack China’s Consulate in Karachi.

Mr. Zhengwu praised the policemen who lost their lives saving the men and women working in the Consulate. He further hoped that the donations being collected for the martyred police officers would help their families. Mr. Dingbin gave 2,000 RMB and Mr. Zhengwu handed over a cheque of 1,000 RMB for the cause.

The Chinese diplomats are seriously considering to develop a "Permanent Donation Fund," revealed Mr. Dingbin. Which "will not be limited to helping families of the security officials. It spectrum would be broadened to help out the deserving people of Pakistan."

When asked what security measure has the Consulate taken after the terror attack, he said that they have developed a two-tier working mechanism that is in coordination with the Punjab government. “The mechanism features regular meetings of all law enforcement agencies to keep beefing up security standards.”


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