Re: Pakistani Economic Stress Watch
Posted: 05 Jan 2019 23:08
Well sovereign is the least active field, the people who go there are not the brightest. Anyways paki debt won't be traded on the basis of creditworthiness
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Quite right on that ..this is something India should watch for ..does the US walk its talk ? or is are they just counting their last days while Emperor Trump fiddles around ?TKiran wrote:If we remove the noise from signal, pakis are saying that they will give the money from IMF to cheenis for CPEC (it doesn't matter less or more).(it doesn't even matter if the loan approval would be delayed by 3 months or 6months, pakis need money to pay cheenis- schedule gaya bhaad mein.)
So they are going to take the US tax payer money through IMF and gift it to cheenis for CPEC. Let's see if US is going to accept that.
If US doesn't accept and force IMF not to give aid to pakis, it means, US is really serious about breaking cheen. On the contrary, if they approve, that means, US is either naieve or they are no longer the super power they used to be.
what dharmic DNA ? Some of leaders can very well do it despite professed notions ..there is no dharma in present politics where war is going on in more than half the countries of the world proxy or otherwiseVips wrote:India should go all out in targeting and making the Pakistani exports noncompetitive. Only if textile sector is rendered ineffective you will have lakhs of aam abduls unemployed and on the streets. Wish we could do this but our Dharmic DNA renders us incapable of being ruthless.
kit wrote:what dharmic DNA ? Some of leaders can very well do it despite professed notions ..there is no dharma in present politics where war is going on in more than half the countries of the world proxy or otherwiseVips wrote:India should go all out in targeting and making the Pakistani exports noncompetitive. Only if textile sector is rendered ineffective you will have lakhs of aam abduls unemployed and on the streets. Wish we could do this but our Dharmic DNA renders us incapable of being ruthless.
Thank you sir, this is exactly what I have been saying all along! Instead of water-stressed states of South India fighting with each other to grow this low value commodity product, we should be procuring it from Pakistan. They can spend the remainder of their IWT "liquid" proceeds on growing sugarcane for us, that way we get to have the cake and eat it too, at a very low cost to us while depleting their ecological resources. (besides we don't really need so much sugar in India but that is an argument for another day...) We should be growing high value/export oriented agri-produce and employ more in the food processing industry instead.menon s wrote:The best way, is for India to buy Pakistani made sugar. Already there the cotton crop is getting replaced by Sugar plantations. The quality of cotton is fallen to the degree where they import cotton to make white shirts etc. Without cotton, their exports will go south.
Not their money back and certainly not with interestuskumar wrote:UAE to extend $6.2bn cash, oil and investment package to Pakistan
UAE and Saudi are giving $6.2 B in loans and differed oil payment. one wonders what they are getting in return.
no Islamic banking (interest free lending) for their brothers !menon s wrote:the saudi money comes with 3.4% interest. and uae charges 2.8%.
Land mass of India is made to grow cash rich fruits and vegetables only. Grains and Sugarcane should not be grown at all!yensoy wrote:Thank you sir, this is exactly what I have been saying all along! Instead of water-stressed states of South India fighting with each other to grow this low value commodity product, we should be procuring it from Pakistan. They can spend the remainder of their IWT "liquid" proceeds on growing sugarcane for us, that way we get to have the cake and eat it too, at a very low cost to us while depleting their ecological resources. (besides we don't really need so much sugar in India but that is an argument for another day...) We should be growing high value/export oriented agri-produce and employ more in the food processing industry instead.menon s wrote:The best way, is for India to buy Pakistani made sugar. Already there the cotton crop is getting replaced by Sugar plantations. The quality of cotton is fallen to the degree where they import cotton to make white shirts etc. Without cotton, their exports will go south.
The country's total debt (domestic and external) stocks continue to increase reaching all-time high of Rs 26.4 trillion at the end of November 2018 owing to rising fiscal imbalance. The State Bank of Pakistan (SBP) Monday revealed that the federal government's total debt stocks recorded an increase of 9.25 percent during first four months (July-Nov) of this fiscal year (FY19), mainly due to higher fiscal deficit followed by slow revenue collection.
During the period under review, domestic debt increased by 21 percent, while external debt stocks rose by 17 percent.
https://fp.brecorder.com/2019/01/20190108437870/However, central government's external debt excludes the IMF loans to Central Bank for balance of payment support, foreign exchange liabilities and includes the IMF loan for budgetary support.
They are going to need the Prince of Nigeria soon to bring in additional revenues.anupmisra wrote:Debt stocks hit record Rs 26.4 trillion mark
Seems the paki ministers got bitch slapped by the IMF for trying to get concessional loans by showing cooked figures and are now trying to find bali ka bakraa and halal a few low-level bureaucrats for thatSome officers of the Ministry of Finance have allegedly tampered with an official file that is being prepared on the directions of a cabinet body to determine the quantum of contingent liabilities, which have already reached Rs1.3 trillion by September 2018.
Budget wing officials have allegedly removed a dissenting note of the Debt Policy Coordination Office of the finance ministry, officials in the ministry told The Express Tribune. The debt office penned the note in response to observations made by the budget wing on the nature of contingent liabilities that should be included in an ongoing in-house exercise.
The incident took place in the last week of December and came to the knowledge of the debt office when the file was returned to it for further deliberations, they added. However, the original note is still part of the debt office record.
The Economic Coordination Committee (ECC) of the cabinet had directed the finance ministry to prepare a position paper on the status of the contingent liabilities. The contingent liabilities are not direct responsibility of the federal government but are backed by the sovereign guarantees.
The contingent liabilities stood at Rs1.253 trillion as of end September, according to the finance ministry. These include Rs1.2 trillion guarantees in the domestic currency and Rs59 billion in foreign currency.
However, the Rs1.3 trillion guarantees do not reflect the full picture, as there are certain contingent obligations that are not recorded in the Ministry of Finance. In order to address this issue, the ECC had directed it to reconcile the data.
Finance Minister Asad Umar wanted full disclosure of the contingent liabilities, whether they are explicit or the implicit guarantees, to ensure transparency and analyse their fiscal implications, said finance ministry spokesman Dr Najeeb Khaqan.
The debt office prepared a draft position paper in light of the definition of guarantees given in the Fiscal Responsibility and Debt Limitation Act of 2005. The file was then forwarded to the finance secretary who sent it to the budget coordination wing.
The wing raised certain observations like the debt office was not fully reflecting the liabilities position and there was also a need to include losses incurred by state-owned enterprises like Pakistan International Airlines and Pakistan Steel Mills, said sources. The budget wing also wanted the quasi-fiscal operations to be included in contingent liabilities.
The sources said that the debt office did not endorse this position and wrote a dissenting note while referring to the FRDL Act. The “Guarantees include any obligation undertaken to make payment in the event of profit of an undertaking failing short of the specified amount”, according to definition of guarantees given in the FRDL Act of 2005.
Subsequently, the dissenting note was removed from the file, the sources added. The purpose of removing the dissenting note could not be ascertained.
If the government includes all the implicit and explicit types of contingent liabilities, the quantum of total liabilities may even jump to over Rs2.6 trillion, the sources added.
The matter of tampering the file had been brought to the knowledge of the office of the finance minister and additional secretary finance budget but no action has been taken against the responsible officers, informed the sources.
However, when The Express Tribune contacted the finance ministry for a version it decided to investigate the matter. “The matter was thoroughly looked into at the highest level and no evidence of any tampering or misplacement of any note was found,” claimed the ministry in its official response. It added that the Finance Division works in a very professional manner and such instances neither occur, nor would be tolerated.
The Debt Policy Coordination Office has been setup under the FRDL Act and it directly works under the supervision of the finance minister. Under the law, it should consist of three directors out of whom two directors shall be from the private sector and one of the directors shall be designated as director general.
However, there is only one director currently serving in the debt office and the position of the director general remains vacant.
One of the functions of the debt office according to section 13 of the law is to “provide consistent and authenticated information on public and external debt and government guarantees including total guarantees outstanding”. (Yeah right that is going to happen in pakistan )
The budget wing also desired that the debt office should collect the data of contingent liabilities from other government departments and get it verified. But this is not the mandate of the debt office and this function can only be performed by either the budget wing or the corporate affairs wing of the finance ministry.
In short, they are nearly at the same state as at the beginning of the Global Banking Crisis .......Commenting on the findings, ACCA Pakistan head Sajjeed Aslam said, “Despite overall confidence in South Asia holding up better than elsewhere in the world, economic sentiment in Pakistan is now at its second-lowest level since the GECS series began in 2009.”
VKumar wrote:Whenever Pakistanis want to hide they use the term South Asia
thankfully axactgate is behind them.Vips wrote:They slyly claim to be from Punjab or Hyderabad taking advantage of the state and city's shared common name in India. Also mention University of Punjab and University of Hyderabad while not mentioning the country name on resumes.
ISLAMABAD: The delay in the launch of Rs200 billion Islamic bond to rescue the troubled energy sector has put the largest state-owned firm — Pakistan State Oil (PSO) — in dire straits with its receivables going beyond a record Rs364bn.
A senior petroleum ministry official said receivables from the power sector alone had touched Rs265bn as of Jan 18 because of primary circular debt. In addition, a second tier circular debt worth Rs51bn has built up against the Sui Northern Gas Pipelines Limited (SNGPL) due to non-payment of LNG supplies, affecting the entire gas sector.
Moreover, about Rs48bn are payable to the PSO by the Pakistan International Airlines (PIA) (another bankrupt organisation) and the federal government on account of price differential claims and exchange rate loss.
United Nations (UN) in a report released on Monday said Pakistan’s economic growth is forecast to slow down markedly to below 4% in 2019 and 2020, after growing at an average of 5.4% in 2018.
According to UN’s report “World Economic Situation and Prospects 2019”, the economic outlook in Pakistan is challenging and it is surrounded by significant downside risks.
Pakistan’s economy is hampered by a severe balance of payment difficulties due to large twin fiscal and current account deficits, a noticeable slide in international reserves and rising pressures on the domestic currency said UN.
It highlighted the public debt level was high and around 70% of GDP, with increasing sustainability worries.
https://profit.pakistantoday.com.pk/201 ... -pakistan/The UN envisages regional GDP of South Asia to expand by 5.4% in 2019 and 5.9% after growing by 5.6% in 2018.
Peregrine wrote:Pakistan to sell turnaround story to lure investors - Shahbaz Rana
This time, no federal government high-up is attending the event from Pakistan, missing an opportunity to tell global investors about the prospects of investment.
However, the Pathfinder Group has arranged sideline events for Balochistan Chief Minister Jam Kamal Khan to highlight peace in the once insurgency-hit province and investment prospects, including in Gwadar. He will be assisted by Corps Commander of Southern Command Lieutenant General Asim Saleem Bajwa.
These events have been arranged by the Pathfinder Group, whose Chairman Ikram Sehgal was elected chairman of the K-Electric board last week.
Former chief justice of Pakistan Justice (Retired) Mian Saqib Nisar will be the chief guest at the Pakistan Breakfast. He will speak about his experience of dispensing justice at one of the most critical times in Pakistan.
These kinds of USD interest rates are a terrible deal for the Pakistani government, and shows their desperate situation. In comparison, FCNR USD rates offered by Indian PSBs to NRI are in the range of 3.61%. If GoI gives me 6.75%, I will liquidate all my holdings and park them in GoI bonds But then again, GoP isn't the most reliable borrower in the world.ISLAMABAD: The government is set to launch a dollar-denominated diaspora bond – Pakistan Banao Certificate (PBC) – on Jan 31 to tap into the international savings of overseas Pakistanis for building foreign exchange reserves.
Finance Minister Asad Umar told Dawn that the certificates would be of two maturities – one of three years at about 6.25pc return and another with five-year maturity carrying 6.75pc return.
More like Bakistan dubaao certificate. Because that's what these hare-brained schemes are destined to achieve.yensoy wrote:It should be Pakistan Bachao Certificate.