IMF warns Pakistan economy deteriorating

Discussion in 'Pakistan' started by Blackwater, Oct 5, 2012.

  1. Blackwater

    Blackwater Veteran Member Veteran Member

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    WASHINGTON: The International Monetary Fund (IMF) said Thursday that Pakistan’s economic situation was worsening and faces a return to double-digit inflation as the government prints money to finance its deficit.

    In a mission report, the IMF said Islamabad urgently needed to address deep problems in its energy sector, including costly subsidies and poor distribution, while boosting growth to meet a rapidly growing population.

    “Pakistan faces a challenging economic outlook. GDP growth in 2012/13 is projected to be in the 3-3.5 per cent range, which needs to accelerate in order to absorb the growing labour force,” the IMF said.

    “Inflation has fallen recently but is expected to be back in double digits by the middle of next year if corrective measures are not taken to reverse monetary financing of the fiscal deficit.” It said the country’s external accounts are deteriorating, with incoming investment slowing and the central bank’s reserves dropping.

    “Decisive and far-sighted action is needed to address this challenging outlook,” including raising taxes and cutting expenditures, especially subsidies, the IMF said.

    It warned that allowing inflation to rise is hurting the population at large.

    “Underlying inflation remains high and represents a regressive tax that disproportionately hurts the poor,” the IMF said.


    IMF warns Pakistan economy deteriorating | DAWN.COM
     
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  3. Blackwater

    Blackwater Veteran Member Veteran Member

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    there is saying ,

    there is no point playing been in front of buffalo

    and

    what monkey knows ,how ginger taste:lol::lol::lol:
     
  4. farhan_9909

    farhan_9909 Tihar Jail Banned

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    last year they said Pakistan growth would be 2.7%
    while even ADB yesterday revised the growth rate to 3.7%

    ksE 100 is Close to 16000 points compare last year October just 10000 points

    1.6billion imf loan already paid while 250millions to be paid next month

    imf should get it that we wont go to them for another bail out

    our growth rate if is worst than would be 4.5% next which is still good considering India growth next year just 5.7%
     
  5. sukhish

    sukhish Senior Member Senior Member

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    still 6.4 billion to go for IMF, also GOP lied about last year growth
     
  6. farhan_9909

    farhan_9909 Tihar Jail Banned

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    to be paid in 3 years ending 2015

    i can say the same about India than

    i was thinking of 4% growth.3.7% was disappointment.
     
  7. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    ^^ Ever since shortcut Aziz lied about growth in the Musharraff era, people find it tough to believe statistics of Paki growth. Of course, being a Paki you will try to "say the same about India" but this is just the usual Paki propensity for equal-equal with a nation that is much superior to them.
     
  8. farhan_9909

    farhan_9909 Tihar Jail Banned

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  9. Phenom

    Phenom Regular Member

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    What happened to Pakistani economy, I would have expected it to grow by 4.5 - 5+, despite all the turmoil, It seems to have fallen of the cliff. Wasn't it growing at around 6% a few years ago?
     
  10. farhan_9909

    farhan_9909 Tihar Jail Banned

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    growth planned for 2012 was 4.1% but achieved only 3.7%

    growth planned for next year is 4.7%.and many things are on positive note now

    decreased inflation
    stock exchange on rise

    so even if 4.5% than this is better for Pakistan
    while under imran khan growth will be on fire
     
  11. blank_quest

    blank_quest Senior Member Senior Member

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    do you have any fcuking clue! No damn good growth will happen unless states have equal growth opportunity. Baluchistan, Waziristan, FATA, Sind, Tell me which state has achieved the growth rate of above 4%? do mock your made up stats! Growth don't come on loans. it comes on capacity and capital building
     
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  12. Singh

    Singh Phat Cat Administrator

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    3-4% growth in Pak economy means 5-6bn$ added to the GDP.

    A 5-6% growth of Indian economy means 90-120bn$ added to the GDP

    figures from : TradingEconomics.com - Economic Data for 196 Countries
     
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  13. sukhish

    sukhish Senior Member Senior Member

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    I know things are changing in pakistan no doubt. but also don not think that indians don't want pakistan to grow. pakistan growth is good for the this region.
     
  14. sob

    sob Moderator Moderator

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    GDP growth is one aspect. Headline inflation which is threatening to touch double digits will put pressure on the Pakistani Rupee. Any devaluation of PR will be a double whammy-- Increase in cost of imports and increase in amount of debt repayment.

    Just repaying the loans will not be enough, fresh investment is required to sustain the growth levels.
     
  15. pankaj nema

    pankaj nema Senior Member Senior Member

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    Pakistan is steadily moving towards bankruptcy

    It has been estimated that LATEST by August 2015 Pakistani economy will collapse

    After US withdrawl from Afghanistan ; Pakistan will not get any money from
    US / WB/ IMF/ ADB

    The ONLY option left for Pakistan is to SELL Balochistan to China
     
  16. farhan_9909

    farhan_9909 Tihar Jail Banned

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    let suppose if pak growth next year is 4.5%(planned 4.7%) because last year jump was from 2.4% to 3.7%
    than pak will add roughly 11 billions as this year gdp was roughly 230billions to gdp next year
    which is good enough

    and why you started comparing with India?dont you consider the population factor?

    And After that growth might be 6%
     
  17. farhan_9909

    farhan_9909 Tihar Jail Banned

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    Pkr value decreased from 66 in 2008 to 95 recently against dollars

    steps were taken to reduce inflation

    while i never meant that pak is enjoying a stable economy

    What i meant is that the economy is recovering
     
  18. sob

    sob Moderator Moderator

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    farhan, you can not taking inflation as a factor. IMF is warning about it. We have seen how high inflation knocked off our growth.

    Sorry, just checked the figures for September the inflation is at 8.7% while in August was 9.05% and in April was 11%. but surprisingly the value of PKR v/s US Dollar has remained almost static for better part of this fiscal.
     
    Last edited: Oct 5, 2012
  19. farhan_9909

    farhan_9909 Tihar Jail Banned

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    good that they informed them

    they might take some steps
     
  20. sob

    sob Moderator Moderator

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    I just corrected myself, you may see my full post.
     
  21. farhan_9909

    farhan_9909 Tihar Jail Banned

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    since last week the value of Pkr started decreasing again but was constant for the past few weeks

    if we managed to keep inflation at 7% TILL 2013 June than we might even achieve 5% growth rate

    as said before the economy is doing much better than exactly one year before
     

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