Pakistan Economy : Updates and Discussions

Pundrick said:
e.g Italy has 100% of GDP as debt
Even Japan & UK has 110% of GDP as debt.
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I am no economics expert but............

All the countries here(UK, Japan, Italy) are at a higher level of development than India thus the can afford to have a high debt to GDP. Although I still think its a pretty bad idea.
Pakistan is not at a higher level of development than India and thus having a near 80 % Debt to GDP that could swell to near 85% is a pretty horrific situation.

But then I suppose Pakistan could get all their problems solved by letting China proclaim them as a province.
Nara e Takbeer :whistle:
 
Gautam said:
I am no economics expert but............

All the countries here(UK, Japan, Italy) are at a higher level of development than India thus the can afford to have a high debt to GDP. Although I still think its a pretty bad idea.
Pakistan is not at a higher level of development than India and thus having a near 80 % Debt to GDP that could swell to near 85% is a pretty horrific situation.

But then I suppose Pakistan could get all their problems solved by letting China proclaim them as a province.
Nara e Takbeer :whistle:
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BlackOpsIndia said:
IMF may delay visit as bailout talks still going on - Newspaper - DAWN.COM

IMF ne lagbhag mana kar diya :ROFLMAO:
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Some Pakistanis on twitter are saying IMF is demanding a reduction in fiscal deficit, government spending in other words. They don't have much exports and a smallish tax revenue means the govt. is spending more than it earns, a lot more. Since Pakistani army takes a big share of the budget, indirectly the defense spending has to be reduced.
Rawalpindi won't like that. I think this is where all the "coup,coup ,coup" chorus is coming from. Not sure how a coup d'état will help though if anything it seems rather counter productive.
 
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The kicker is IMF are also demanding to know military budget details & to cap military expenditure on a sizable lower level, this is in addition to asking details & terms of Chinese CPEC loans, both are no go option for Pak Military, yet they need the loans to keep pak afloat.

On marcro level correction, IMF demands - sizable devaluation, major increase on taxes, i.e., power oil etc, as their tax collection from other sources is near negligible. This is a problem for IK, as IMF wants a single shot correction, while IK wants to do it gradually over number of years, to save ire from public, IK plan though better politically, but economically this will mean sustained high inflation & low growth for Pak, something we wont mind either. And by the time its actually executed, Pak be in bigger loan payment crisis then presently on way to default.
Repeat - till economy bust, when bail money dries off.
Note: the short term money received from Saudi/UAE/China will required to be paid soon too.

COUP wont change a thing, they still need Bail out money to keep country afloat. And India has given clear message it is willing to walk the talk on Nuclear Blackmail bluff, if Pak plan on deciding to put a hardliner instead in power from present Taliban Khan. So that option is out too. Instead that will give India more options military to justify action.

In short between Devil & Deep Sea, Pakistan finds itself.
 
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And the drama continues.......@_Anonymous_ much ado about nothing it seems. Or maybe they are hiding it by putting on a brave face.

'No truth to reports of changes in cabinet,' says information minister - Pakistan - DAWN.COM

"There was a difference of opinion between us and the IMF, and that's what was taking long."
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Euphemism much ?
There's nothing really there to hide, it [Chinese debt] is about maybe 10 per cent of Pakistan's public debt, it's on good terms and is long-tenure.
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:sneaky: Good term you say. Good for whom ?
 
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