Pakistani Economic Stress Watch

Dilbu · Post by **Dilbu** » 01 Apr 2022 10:12

The local currency ended the day at another all-time low of Rs183.48 against the dollar, depreciating by 84 paisas from closing level of Rs182.64 of previous session.

“The rupee depreciated on the back of settlement of heavy fine of Reko Diq project as well as foreign debt payments,” dealers said.

“Prevailing political uncertainty in the country is also adversely impacting the rupee value against the dollar as it has created negative sentiments for the local unit against dollar,” they added.

In the open market also, the dollar peaked to all-time high level to settle at Rs185 against the local unit, which was one rupee up against the closing level of the last day.

Dilbu · Post by **Dilbu** » 01 Apr 2022 10:14

Pakistan: Nationwide blackouts begin as power crisis intensifies

The power crisis across Pakistan has intensified as the overall electricity shortfall reached 5000 megawatts, local media reported on Thursday. The unannounced load-shedding has begun across the country as the electricity shortfall has reached 5,000MW, ARY News reported citing sources.

partha · Post by **partha** » 01 Apr 2022 12:25

Can't wait for the next PM to claim circular debt in power sector will be resolved in 90 days just like the current PM claimed on assuming power.

Thakur_B · Post by **Thakur_B** » 01 Apr 2022 15:16

Dilbu wrote:Dollar roars past Rs183
The local currency ended the day at another all-time low of Rs183.48 against the dollar, depreciating by 84 paisas from closing level of Rs182.64 of previous session.

“The rupee depreciated on the back of settlement of heavy fine of Reko Diq project as well as foreign debt payments,” dealers said.

“Prevailing political uncertainty in the country is also adversely impacting the rupee value against the dollar as it has created negative sentiments for the local unit against dollar,” they added.

In the open market also, the dollar peaked to all-time high level to settle at Rs185 against the local unit, which was one rupee up against the closing level of the last day.

Inshallah boys playing well. Hope they bat like Sehwag and hit triple century soon.

g.sarkar · Post by **g.sarkar** » 01 Apr 2022 15:28

You dhimmis need to think big for a change. Think of Weimar Republic in 1923. Or Zimbabwe in 2007. Daily inflation of 98%, TFTA Pakistan can surely beat that.
Alhamdullilah,
Gautam

Vips · Post by **Vips** » 01 Apr 2022 17:58

Here's how Pakistan Army runs Rs 1.5 lakh crore business.

It has been more that 75-years since Pakistan got its independence in August 1947. During these years, the Pakistan Army has not just been actively involved in the country's politics and governance but also has been running more than 50 big businesses in the country. Pakistan Army is perhaps the only military establishment in the world to own a business empire within the nation.

Pakistan Army engages in business activities under these four names - Army Welfare Trust, Military Foundation, Shaheen Foundation and Bahria Foundation. All these businesses are done under the ambit of Ministry of Defence. According to official documents presented in the Parliament, the Pakistan Army runs a business of more than Rs 1.5 lakh crores.

Unlike other countries, the Pakistani Army is the biggest business house of the nation. This is the main reason why the Pakistan Army has a say in the politics of the nation and interferes in the governance. Since the nation came into existence in 1947, around 72 military officers above the rank of Major have been suspended on accounts of corruption cases.

During Imran Khan's tenure as the Prime Minister, investigations are being conducted on 6 military officers on charges of corruption. The gravity of the situation can be understood by the fact that only last week, Prime Minister Imran Khan, during a rally, taking on the Pakistan Army, mockingly said that the Indian Army was free of corruption.

Retired officers trust
The Defence Ministry of Pakistan has establisted trusts for all the military wings of the country. Military Foundation, Army Welfare Trust and Shaheen Foundation is for the welfare of retired armed forces personnel. The Bahria Foundation is for the welfare of the retired naval officers of the country.

The profits from the businesses is distributed among the share holders from the retired military personnel.

Rs 2 lakh crore worth property in 8 cities
The Pakistan Army has a command over Defence Housing Authority (DHA) in 8 cities across the country. These cities include Islamabad, Rawalpindi, Karachi, Lahore, Multan, Gujranwala, Bahawalpur, Peshawar and Quetta.

Along with cantt area, in posh areas of the prominent cities, Pakistan Army allots lands. The army has more than Rs 2 lakh crore worth property.

Swiss Bank accounts of 25 retired army officers
According to Credit Suisse report of October 2021, at least 25 retired officers of the Pakistan Army have Swiss Bank accounts. There is around Rs 80,000 crore undeclared assets deposited in these accounts. This includes the account of former ISI Chief Akhtar Abdur Rahman Khan, in whose account Rs 15,000 crore is deposited. It also includes the accounts of other military officers.

Pizza chain
Pakistan Army Quetta Corps Lieutenant General Asim Saleem Bajwa, who is known as General Papa John's, has invested around Rs 22,000 crore in America's popular pizza chain Papa John's in the name of his family members.

Former Pakistan Army Chief Ashfaq Parvez Kayani's two brothers were involved in the Rs 15,000 crores Islamabad housing scandal.

Opium business
During 1980s, in Afghanistan, the financial assistance provided by the United States to the Mujahideen fighters was mostly looted by former ISI Chief Asad Durrani. It is claimed that Durrani involved Pakistan Army and ISI spies in the business of opium production.

Later during an investigation, around Rs 2,000 crores of undeclared assets were found in the Swiss account of Asad Durrani.

See - Our Porki Officers are so smart. Look at their 'Jazbaa' in becoming so rich. These are figures that your short, dark, Kafir officers can only dream of.

Dilbu · Post by **Dilbu** » 01 Apr 2022 19:51

Historic weakness: Rupee closes at over 184 against US dollar for the first time

vimal · Post by **vimal** » 01 Apr 2022 21:12

Meh. Anything below 786 / $ is haram.
Ya maula Dimraan ko bana PM

Manish_P · Post by **Manish_P** » 02 Apr 2022 07:39

Dimran should do what brother Erdo the Turk did.. simply rename the pkr as Djinnar and make 18.4 djinnars equal to 1 USD

g.sarkar · Post by **g.sarkar** » 02 Apr 2022 17:21

https://www.thenews.com.pk/print/946656 ... -inflation
Weak rupee: Surging food prices fan March inflation
Israr Khan, April 02, 2022
ISLAMABAD: Consumer Price Index (CPI) accelerated in March, stayed in the double digits for the fifth month in a row, due to higher commodity prices and analysts said inflation could stay uncomfortably high in 2022 on weak rupee.
CPI inflation increased 12.72 percent in March 2022 compared to 12.24 percent in February, and 9.1 percent in March 2021, Pakistan Bureau of Statistic (PBS) data showed on Friday. In February, the CPI was recorded at 12.24 percent, and in March 2021, it was at 9.1 percent.
Food and beverages have the most significant share of 34.58 percent, and utility charges (housing, water, electricity, and fuel) with 23.63 percent share. Both prices sharply increased during the month under review. Clothing and footwear and transportation charges also increased sharply.
CPI inflation has been on the rise for several months. Increased commodity prices, including food and crude oil in the international market impact, cannot be overruled. This is a type of imported inflation affecting millions of poor Pakistanis. In Pakistan’s imports bill, apart from energy imports, food items including wheat, pulses, sugar, edible oil, and others occupy a sizable share.
PBS further reported nine-month (July-March 2021-22) average inflation at 10.77 percent compared to 8.34 percent in the same period of last year. It falls within the range of the State Bank of Pakistan projection of CPI falling between 9 to 11 percent by the end of this fiscal.
According to PBS, urban inflation increased by 11.9 percent on a year-on-year basis in March 2022 compared to an increase of 11.5 percent in the previous month and 8.7 percent in March 2021.
Similarly, rural CPI increased by 13.9 percent on a YoY basis in March 2022 compared to 13.3 percent in the previous month and 9.5 percent in March 2021.
.....
Gautam

Vips · Post by **Vips** » 03 Apr 2022 21:43

Analysing the four pillars of power at play in Pakistan.

While we will debate about the political situation, it is pertinent to understand the four pillars of power in Pakistan. These pillars hold the entire power set up in Pakistan.

Pakistan Army:The first and foremost pillar of power in Pakistan is its Army and the most powerful person in the country is the Army Chief, whose powers are more than the President, Prime Minister, and Chief Justice of Pakistan. Interestingly, there is no one in the country to challenge his power and anyone even thinking of doing so, disappears from the screen. Pakistani Inter Services Intelligence has a full-fledged department for orchestrating and managing political situation in the country. Pakistan Army looks for a favourable leader who can dance to its tunes and supports him. If there is anyone who talks of democracy, they get a different treatment. We have example of many leaders including ex-Prime Minister Benazir Bhutto who were killed mercilessly and we know well that it was the Pakistan Army that rigged the elections in 2018, bringing Imran Khan to power and they will do the same once again in the coming elections too.

Fanatic Religious Organisations: Pakistan can be called as mother of all terror organisations. Be it Al-Qaeda, be it Islamic State or any other brutal terror groups, we will find their roots in Pakistan. These terror groups are formed under the support of various Islamic Religious organisations and their entire funding happens through the vast network of these Islamic Organisations. Over last five decades, the influence of religious groups in the power corridors of the country has increased manifolds. So much that they became the second most powerful pillar of Pakistan’s government. They have the power to bring the country to its knees anytime they want and hence political leaders are forced to dance to their tunes.

Bureaucracy: In Pakistan, the bureaucracy may not be visible much but they are very strong. They understand it well that Pakistan is a country of political instability and, hence, they should be neutral to their politically-elected governments. However, their close relations with the Pakistan Army are not a secret. Although a significant number of people sitting in senior bureaucratic positions are Pakistan Army Officers, yet the civil system works hand-in-hand with Pakistan Army. Even if it is conducting elections, census, investigation or any other aid to civil authority, Pakistan Army is made part of it and bureaucracy keep enjoying the fruits of power. Bureaucrats stay on plum positions by keeping their military masters happy.

Retired Officers of Pakistan Army: Unlike regular Pakistan Army who are in power and can influence the decisions of the government, there is the fourth pillar of power in Pakistan and that is the Retired Officers’ force. It is a bitter truth that more than 60% of Pakistan’s economy is being run by the industries owned or run by these retired officers. They are everywhere from manufacturing to service sector, information technology to aviation, consumer goods to travel and tourism and from media to agriculture. You count top 10 industries and top 10 Public Sector Undertakings of Pakistan; retired officers will always be there. All the governmental decisions pertaining to economy and industry of the country cannot be taken without their consent and that is a bitter truth.

chetak · Post by **chetak** » 04 Apr 2022 05:51

Vips wrote:Analysing the four pillars of power at play in Pakistan.

Retired Officers of Pakistan Army: Unlike regular Pakistan Army who are in power and can influence the decisions of the government, there is the fourth pillar of power in Pakistan and that is the Retired Officers’ force. It is a bitter truth that more than 60% of Pakistan’s economy is being run by the industries owned or run by these retired officers. They are everywhere from manufacturing to service sector, information technology to aviation, consumer goods to travel and tourism and from media to agriculture. You count top 10 industries and top 10 Public Sector Undertakings of Pakistan; retired officers will always be there. All the governmental decisions pertaining to economy and industry of the country cannot be taken without their consent and that is a bitter truth.

A detailed book has already been written on the subject

Military Inc.: Inside Pakistan's Military Economy by Ayesha Siddiqa

there may(?) be two editions so, if interested, make sure to get the latest one

if anyone is interested: https://www.amazon.in/Military-Inc-Insi ... 0745325459

rsingh · Post by **rsingh** » 04 Apr 2022 12:18

g.sarkar wrote:https://www.thenews.com.pk/print/946656 ... -inflation
Weak rupee: Surging food prices fan March inflation
Israr Khan, April 02, 2022
ISLAMABAD: Consumer Price Index (CPI) accelerated in March, stayed in the double digits for the fifth month in a row, due to higher commodity prices and analysts said inflation could stay uncomfortably high in 2022 on weak rupee.
CPI inflation increased 12.72 percent in March 2022 compared to 12.24 percent in February, and 9.1 percent in March 2021, Pakistan Bureau of Statistic (PBS) data showed on Friday. In February, the CPI was recorded at 12.24 percent, and in March 2021, it was at 9.1 percent.
Food and beverages have the most significant share of 34.58 percent, and utility charges (housing, water, electricity, and fuel) with 23.63 percent share. Both prices sharply increased during the month under review. Clothing and footwear and transportation charges also increased sharply.
CPI inflation has been on the rise for several months. Increased commodity prices, including food and crude oil in the international market impact, cannot be overruled. This is a type of imported inflation affecting millions of poor Pakistanis. In Pakistan’s imports bill, apart from energy imports, food items including wheat, pulses, sugar, edible oil, and others occupy a sizable share.
PBS further reported nine-month (July-March 2021-22) average inflation at 10.77 percent compared to 8.34 percent in the same period of last year. It falls within the range of the State Bank of Pakistan projection of CPI falling between 9 to 11 percent by the end of this fiscal.
According to PBS, urban inflation increased by 11.9 percent on a year-on-year basis in March 2022 compared to an increase of 11.5 percent in the previous month and 8.7 percent in March 2021.
Similarly, rural CPI increased by 13.9 percent on a YoY basis in March 2022 compared to 13.3 percent in the previous month and 9.5 percent in March 2021.
.....
Gautam

How come weak rupee is not helping increase exports?

g.sarkar · Post by **g.sarkar** » 04 Apr 2022 12:29

rsingh wrote:
g.sarkar wrote:https://www.thenews.com.pk/print/946656 ... -inflation
Weak rupee: Surging food prices fan March inflation
Israr Khan, April 02, 2022
ISLAMABAD: Consumer Price Index (CPI) accelerated in March, stayed in the double digits for the fifth month in a row, due to higher commodity prices and analysts said inflation could stay uncomfortably high in 2022 on weak rupee.
CPI inflation increased 12.72 percent in March 2022 compared to 12.24 percent in February, and 9.1 percent in March 2021, Pakistan Bureau of Statistic (PBS) data showed on Friday. In February, the CPI was recorded at 12.24 percent, and in March 2021, it was at 9.1 percent.
Food and beverages have the most significant share of 34.58 percent, and utility charges (housing, water, electricity, and fuel) with 23.63 percent share. Both prices sharply increased during the month under review. Clothing and footwear and transportation charges also increased sharply.
CPI inflation has been on the rise for several months. Increased commodity prices, including food and crude oil in the international market impact, cannot be overruled. This is a type of imported inflation affecting millions of poor Pakistanis. In Pakistan’s imports bill, apart from energy imports, food items including wheat, pulses, sugar, edible oil, and others occupy a sizable share.
PBS further reported nine-month (July-March 2021-22) average inflation at 10.77 percent compared to 8.34 percent in the same period of last year. It falls within the range of the State Bank of Pakistan projection of CPI falling between 9 to 11 percent by the end of this fiscal.
According to PBS, urban inflation increased by 11.9 percent on a year-on-year basis in March 2022 compared to an increase of 11.5 percent in the previous month and 8.7 percent in March 2021.
Similarly, rural CPI increased by 13.9 percent on a YoY basis in March 2022 compared to 13.3 percent in the previous month and 9.5 percent in March 2021.
.....
Gautam
How come weak rupee is not helping increase exports?

Export is limited to IT only.
Gautam

Deans · Post by **Deans** » 04 Apr 2022 14:14

chetak wrote:[

A detailed book has already been written on the subject

Military Inc.: Inside Pakistan's Military Economy by Ayesha Siddiqa

there may(?) be two editions so, if interested, make sure to get the latest one

if anyone is interested: https://www.amazon.in/Military-Inc-Insi ... 0745325459

Free download from pdfdrive.com
As an author myself, I normally don't encourage free copies, but its not worth paying for anything connected with Pakistan.

Manish_P · Post by **Manish_P** » 04 Apr 2022 17:07

Deans wrote:
chetak wrote:[
A detailed book has already been written on the subject
Military Inc.: Inside Pakistan's Military Economy by Ayesha Siddiqa
there may(?) be two editions so, if interested, make sure to get the latest one
if anyone is interested: https://www.amazon.in/Military-Inc-Insi ... 0745325459
Free download from pdfdrive.com

Thank you so much.

Deans wrote: As an author myself, I normally don't encourage free copies, but its not worth paying for anything connected with Pakistan.

Hear hear.... except for anything which is used towards achieving it's destruction

Thakur_B · Post by **Thakur_B** » 04 Apr 2022 17:18

A question to gurus, do the proceeds from fauji foundation go to Pakistani state exchequer or does it end up in Generals pockets?

isubodh · Post by **isubodh** » 04 Apr 2022 19:02

How long we have to wait till we see something happening in SL also happening in Pak ? The whole story is extending further and further like family serial no fireworks

I would imagine that would be window of opportunity for resolution of Baluch/Sindh/Pok issues.

Ambar · Post by **Ambar** » 04 Apr 2022 19:29

isubodh wrote:How long we have to wait till we see something happening in SL also happening in Pak ? The whole story is extending further and further like family serial no fireworks
I would imagine that would be window of opportunity for resolution of Baluch/Sindh/Pok issues.

Unlikely. SL woes are much worse because they are an island country that depends a lot on imports from food to raw materials to manufactured goods. Pakis on the other hand are a landlocked country with a vast fertile lands , so when it comes to feeding its hungry masses it is self-sufficient, ofcourse its a different story that the land owning class ensures the poor usually go empty stomach. While the Gulf shiekhdoms will routinely kick pakis in their balls5 to remind them where they stand , they will never completely cut off the pakis from sweet energy deals because you never know when you'll need these pakis to do the dirty work against Iran or Yemen or in some other future war. Then there is the population itself, 250 million people, a large paki diaspora ensures they continue to get remittances to finance some of their imports.

That said i am very surprised that the paki rupee is not Rs 200/ 1 USD. There is rampant violence, insurgencies, political instability, burgeoning population and no industry to speak of, so the paki rupee may well be one of the most overvalued currencies in the world.

Deans · Post by **Deans** » 04 Apr 2022 20:53

Thakur_B wrote:A question to gurus, do the proceeds from fauji foundation go to Pakistani state exchequer or does it end up in Generals pockets?

To the extent that taxes are paid, that money goes to the exchequer.
However, if the Fauji foundation did not exist, the same goods & services would be sold by companies that would most likely pay higher taxes.

Pakistan's tax revenue is 5.9% of GDP while India is 10%

Bart S · Post by **Bart S** » 04 Apr 2022 22:22

Ambar wrote:Pakis on the other hand are a landlocked country with a vast fertile lands , so when it comes to feeding its hungry masses it is self-sufficient, ofcourse its a different story that the land owning class ensures the poor usually go empty stomach.

They indeed started out in 1947 with the most fertile lands in the British Raj and the best water resources, got a massive boost in terms of water resources with the IWT as well, so you would think so. However they have mismanaged things badly and are now food deficient. They barely grow any cotton anymore whereas they used to be one of the biggest producers just a couple of decades back, and they can't grow enough wheat either, with Dimran recently citing wheat imports as the main reason for his visit to Russia. Like us they import a lot of oil and pulses, but they don't grow enough of other basic staples like onions or tomatoes and simple vegetables either. The only things that they grow in excess are sugar and rice (for exports as they are TFTA not SDRE hence don't consume much rice) and the sugarcane farms and sugar industry are controlled by a few feudals (similar to Pawarful people on our side of the border) and since most of the land in Pakistan is controlled by feudals and not small farmers (as they never did the land reforms that India did) tailoring crops to achieve food sufficiency is not something that they can easily do. They also lack proper food processing industry (not even to the level that we do) so stuff like baby formula etc and even dog food tends to be imported.

Aditya_V · Post by **Aditya_V** » 05 Apr 2022 10:37

Any Idea why the Paki Rup-pee doing well at 1:184.87 to the USD, with the SBP governor resigning and Political instability doesn't a 20-30% depreciation seem logical?

Bart S · Post by **Bart S** » 05 Apr 2022 14:11

Aditya_V wrote:Any Idea why the Paki Rup-pee doing well at 1:184.87 to the USD, with the SBP governor resigning and Political instability doesn't a 20-30% depreciation seem logical?

Political instability means nothing in a country where politicians are just clowns that change from time to time and regularly fight each other while the circus owners remain the same. Consider islamist street (TLP types) to be circus animals, and you complete the picture.

Aditya_V · Post by **Aditya_V** » 05 Apr 2022 14:41

But nobody to talk to IMF, which means no IMF money temporarily, so Pakis are going to have payment problem, Hain ji?

yensoy · Post by **yensoy** » 05 Apr 2022 14:45

PKR has been incredibly stable given the situation. Benefactors pumping in money/resources in full swing, e.g. J10C for free. Maybe four fathers are giving money for petrol as well as uniform allowance and laundry allowance as well.

Lacking benefactors, we would see a sharp 30% drop in days.

Baikul · Post by **Baikul** » 05 Apr 2022 15:03

Vips wrote:Here's how Pakistan Army runs Rs 1.5 lakh crore business.

….
. According to official documents presented in the Parliament, the Pakistan Army runs a business of more than Rs 1.5 lakh crores.

Unlike other countries, the Pakistani Army is the biggest business house of the nation.

I propose Pakfauj should transform its rank nomenclature to reflect its superior corporate orientation. This will naturally enable accelerated funding from foreign institutions, apart from conveying a sense of deep professionalism and modernisation.

Second Lieutenant - Customer Service Rep - I
Lieutenant- Customer Service Rep - II
Captain - Sales Supervisor
Major - Assistant Manager
Lieutenant Colonel - Manager
Colonel - Sr. Manager
Brigadier - Assistant Vice President
Major General - Vice President
Lieutenant General - Senior Vice President & Director of the Board (voting power)
General (other) - Director of the Board (non voting)
General - COAS - Chief Executive Officer & Managing Partner
Field Marshal - Chairman of the Board

Aditya_V · Post by **Aditya_V** » 05 Apr 2022 18:27

PKr is 185 to USD and 2.46 To INR, so 1 "NaPak" Rupee can in a day or be equal to 2.5 "Pak" Rupee, can we expect this ratio to go 1:72 soon

bharathp · Post by **bharathp** » 05 Apr 2022 19:05

I believe (need to cross check) there is no impending outgoing $$ payment from TSP right away. hence the rupee is stable. its only a few days that this whole multi-PM issue started. need to wait a month (when import bills, and loan servicings) start to happen. its all "cruise control" as of now.
the important decisions are usually taken when paying hefty loan servicing payments.

this is also usually a time when folks line up their pockets so they ensure the books look extra good - we will know the damage a few months later then the benefactors have successfully paid for the UK citizenship

Manish_P · Post by **Manish_P** » 05 Apr 2022 19:26

Any idea when the next payment is due

This is from 3-4 days ago..

Pakistan rupee at historic low on repayments of Chinese loans

The Pakistani rupee plunged to a historic low of 183.70 against the US dollar in the interbank market after the State Bank of Pakistan (SBP) reported a massive outflow of $2.9 billion, Dawn new reported.

The SBP announced that its foreign exchange reserves dropped to $12.047 billion during the week ended on March 25 due to a major repayment of Chinese loans while the rest was regular debt servicing. "This decline reflects repayment of external debt including a major syndicated loan facility from China," said the SBP. The SBP did not mention the specific figure as repayment to Chinese syndicated loans.

g.sarkar · Post by **g.sarkar** » 06 Apr 2022 08:45

Common factors behind Pakistan & Sri Lanka economic collapse, paying for strongman hyper-populism
In episode 973 of #CutTheClutter, Shekhar Gupta looks at two of India’s neighbours — Pakistan and Sri Lanka and their crumbling economies. We look at Pakistani economy's performance since Imran Khan came to power, suspension of IMF programme and Sri Lanka’s major economic crisis amidst the political turmoil.

Apr 5, 2022
Gautam

Atmavik · Post by **Atmavik** » 06 Apr 2022 09:37

^^^ some of coupta's analysis is to twist the argument to suit his ideology, there are plenty of examples of strong men improving economy. and he also does not mention 7 star activist Vandana Shiva for the advise to SL

vimal · Post by **vimal** » 06 Apr 2022 10:00

^^ Everything coupta says has an angle. He’s a Sonia house nigg*.

Dilbu · Post by **Dilbu** » 06 Apr 2022 11:41

Dollar at historic high of Rs185.2 amidst political uncertainty, stalled IMF programme

The rupee plunged to an all-time low against the dollar after losing Rs1.14, closing at Rs185.2 in the interbank market on Tuesday. The impact of the situation put pressure on the rupee after which it breached the Rs185-mark for the first time ever earlier today. Mettis Global — a web-based financial data and analytics portal — said that the rupee had lost its worth by more than 3 per cent or Rs5.4 since March 8, when the no-confidence motion was submitted in the NA.

g.sarkar · Post by **g.sarkar** » 06 Apr 2022 12:32

https://www.hindustantimes.com/world-ne ... 23734.html
Pakistan in turmoil, IMF's $6 billion bailout programme on hold
Aryan Prakash, Apr 05, 2022
According to a Pakistan media report, Islamabad will have to manage $5 billion as a bridge financing gap till June to avert a full-fledged balance of payment crisis and manage depleting foreign currency reserves in case the programme continues to be on hold.
With Pakistan in political turmoil, the economic woes of the country have multiplied manifold. The International Monetary Fund's $6 billion programme has been stalled, with no possibility of the next tranche's approval in the ongoing month, Pakistan daily The News reported.
Now, Pakistan will have to manage $5 billion as a bridge financing gap till June to avert a full-fledged balance of payment crisis and manage depleting foreign currency reserves in case the programme continues to be on hold.
After the IMF programme hit the roadblock, Pakistan's other creditors like the World Bank and The Asian Development Bank stopped the budgetary support and attached approval with the IMF's letter of comfort, the website reported.
The Pakistan officials said that only three options are left now which include negotiation for a consensus on the memorandum of financial and economic policies, wait for the elections till July and then extend the IMF programme beyond September or scrap the existing programme and negotiate a fresh deal with the IMF with the new government.
Nevertheless, Pakistan will have to manage $5 billion for the next few months for averting a crisis like situation. “A financing gap of $2 billion would emerge from the IMF as Islamabad envisages external financing from the Fund through approval of seventh and eighth reviews under $6 billion Extended Fund Facility (EFF). Pakistan will have to manage another $3 billion from bilateral donors to bridge the yawning financing gap,” a top official told the Pakistan media outlet.
.....
Gautam

Bart S · Post by **Bart S** » 06 Apr 2022 15:16

Atmavik wrote:^^^ some of coupta's analysis is to twist the argument to suit his ideology, there are plenty of examples of strong men improving economy. and he also does not mention 7 star activist Vandana Shiva for the advise to SL

On Sri Lanka, he tried to explain away left-wing stupidity by trying to make it appear that it was actually right-wing. No mention of Chicom predatory behaviour and usurious terms either.

On Pakistan, he and his foreign policy editor Jyoti Malhotra basically serve as 'influencers' for Pakistan in India. In the old days they would be advocating for talks with Hurriyat and people to people exchanges, inviting ISI for a joint probe into Samjahuta express, proposing uninterruptible talks with Pakistan that are de-linked from terrorism etc. Earlier a lot of Indians bought into the ISPR narrative that Pakistan was successful and powerful and a rival to India. But the average person in India is a lot smarter now and that BS doesn't fly. In fact the general feeling is that nobody gives a rats ass about Pakistan or engaging with it, the only focus area being terrorism and containing it when it is exported to our soil. It's like an open drain, nobody wants to have anything to do with except hold their nose and maybe ask authorities to take action. So they have changed tactics a bit as the old narrative will simply be laughed at, and he instead spends an inordinate amount of time covering Pakistan, often repeating excerpts from Dimran and Bajwa's speeches without any real critical analysis, basically to keep up the appearance of Pakistan still being relevant and important and help it retain some presence and space in the minds of the viewers.

SidSoma · Post by **SidSoma** » 06 Apr 2022 15:35

Dilbu wrote:Dollar at historic high of Rs185.2 amidst political uncertainty, stalled IMF programme
The rupee plunged to an all-time low against the dollar after losing Rs1.14, closing at Rs185.2 in the interbank market on Tuesday. The impact of the situation put pressure on the rupee after which it breached the Rs185-mark for the first time ever earlier today. Mettis Global — a web-based financial data and analytics portal — said that the rupee had lost its worth by more than 3 per cent or Rs5.4 since March 8, when the no-confidence motion was submitted in the NA.

1 USD = 186.17 PKR....... The race is on bhai log

Ambar · Post by **Ambar** » 06 Apr 2022 18:46

Time for India to help every bakistani. Print as much as possible of their tattered and battered currency and make sure these fresh notes reach every abdul and fatima so they realize their dream of becoming a baki millionaire.

Atmavik · Post by **Atmavik** » 06 Apr 2022 22:41

Bhat is this ? PKR not even hitting 2 double century when the Lankans have hit triple … in this pious month PKR will succeed

Vips · Post by **Vips** » 07 Apr 2022 01:25

UAE rolls over $2 billion Pakistan debt.

The United Arab Emirates (UAE) has rolled over $2 billion debt for one year amid central bank’s call to arrange more loans to stabilise foreign exchange reserves that depleted by one-fourth in just two weeks.

In addition to securing the rollover, the Pakistani authorities on Monday managed a statement from the International Monetary Fund (IMF) to calm the jittery markets that could further undermine the value of the rupee against the US dollar.

The UAE has rolled over $2 billion debt for one more year, Finance Secretary Hamid Yaqoob Sheikh told The Express Tribune on Monday. The facility had matured last month and Pakistan had sought a three-year extension.

The outgoing prime minister, Imran Khan, had requested the $6 billion facility in November 2018 but the UAE approved $2 billion for a period of three years that became effective in early 2019. It was the second major facility that a foreign country rescheduled in past 10 days.
Yet the foreign exchange reserves remained on a sliding path despite a major relief from China and the UAE.

The Finance Ministry spokesman said that the UAE had not yet taken a decision on the rollover of another $450 million debt that matured few weeks ago. Pakistan had not paid back the $450 million debt, although Dubai had demanded its money back.

The foreign exchange reserves that were close to $15 billion till March 18th have already slid to around $11 billion, sources said. The $4 billion or over one-fourth reduction in the reserves within no time has panicked the central bank that is now seeking urgent foreign loans, the sources added.

They said the State Bank of Pakistan (SBP) and the Finance Ministry were discussing options to seek more foreign loans but had very little option in these circumstances.

The government had approached a consortium of foreign commercial banks for a $1 billion loan but the banks were demanding high interest rate, according to the sources. However, in the absence of political leadership, bureaucracy was reluctant to get the loan at higher rate, they added.

Pakistan and the IMF talks were derailed last month – for the third time in as many years -- after the outgoing Pakistan Tehreek-e-Insaf (PTI) government followed the path of fiscal indiscipline and violated its commitments given to the IMF.

The IMF has not yet permanently closed the doors for Pakistan and was willing to engage with the next government. “The Fund looks to continue its support to Pakistan and, once a new government is formed,” Esther Perez Ruiz, the resident representative of the IMF said

“We will engage on policies to promote macroeconomic stability, and enquire about intentions vis-a-vis programme engagement”, Ruiz added. To a question, Ruiz added that the IMF was willing to engage with any government, caretaker or the one formed after the general elections.

However, in July 2018, the Law Division had barred the then caretaker government from entering into a deal with the IMF on the grounds that the interim setup could not bind the country into a longer term contract.

The IMF has not yet disbursed $3 billion out of the $6 billion and the revised scheduled for completion of the 7th review of the programme lapsed last month. The IMF resident representative said that there was no concept of suspension within IMF programmes.

The UAE decision to rollover its loans provided a breathing space to Pakistan, as the economic managers see some additional impact on the external sector due to political instability. The stock market shed over 1,250 points on Monday, as the country grapples with constitutional crisis.

Although China last month agreed to rollover $4.2 billion loan, the procedural formalities for the $2.2 billion commercial loan still remain incomplete.

The finance secretary said that Pakistan was expecting to receive the $2.2 billion from China this month, once all the procedural formalities were done, which would provide a cushion to the foreign exchange reserves. In case of a delay coupled with higher current account deficit, it could be difficult to manage the situation, the sources said.

The Chinese assistance has helped the central bank to maintain the gross foreign exchange reserves in double digits but any further delay in receiving the promised money could create problems to manage expectations, the sources added.

Former planning minister Asad Umar said on Monday that the current external sector situation was difficult to manage for any government.

Dilbu · Post by **Dilbu** » 07 Apr 2022 15:35

Public debt soars by Rs18 trillion

ISLAMABAD: The outgoing government added over Rs18 trillion to the public debt during its three-and-a-half-year stint, which was more than the liabilities accumulated by any government in 75 years, reveals a central bank statement.

As a result, the federal government debt jumped to Rs42.8 trillion by February 2022, an addition of Rs18.1 trillion in three and a half years, according to the State Bank of Pakistan’s (SBP) monthly debt bulletin released on Tuesday.

The two rival parties of Prime Minister Imran Khan, Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP), had added nearly Rs18 trillion to the public debt in 10 years - a mark that the Pakistan Tehreek-e-Insaf (PTI) government crossed in three and a half years.