Pakistan Economy: News & Discussion

[bose]

That's a lie Indian and xenophobes love to spread whenever cornered. The thruth is as proven by Irani scholars that the marriage wasn't consummated until the girl turned off age, probably 16

But that's another discussion, one I will not have on this forum

Beware what you are posting about Indians !!

We can also give you back too ... you will not be able to manage it...

That Mohammad's story of grabbing son's wife is also narrated by others too...

 

[Indx TechStyle]

CPEC set to attract $150b investment

Not possible, no country can absorb investment of half of size of its economy at once.
Consumption can't run along with it.

 

[Kshatriya87]

Pakistan's net public debt crosses Rs18 trillion mark

ISLAMABAD: Pakistan’s net public debt has crossed the Rs18.28 trillion mark, rising about 35pc during the tenure of the ruling Pakistan Muslim League-Nawaz (PML-N).

This was reported by the ministry of finance, in response to a question from Pakistan Peoples Party (PPP) MNA Shahida Rehmani in the National Assembly last week. “The volume of net public debt as on Sept 30, 2016 was Rs18,277.6 billion,” the ministry’s response said.

Total public debt stood at Rs13.48tr at the end of fiscal year 2012-13 — almost three years ago. The major contribution to the increase in net public debt came from an almost 40pc rise in domestic debt, which rose from Rs8.686tr at the end of 2013 to Rs12.14tr at the end of the first quarter of the current fiscal year (FY 2016-17).

In the same period, foreign debt posted an increase of 28pc and went from Rs4.796tr in 2013 to Rs6.14tr on Sept 30, 2016.

Explaining the reasons behind the surge, the finance ministry said that public debt was mainly obtained to finance the fiscal deficit and was approved by the parliament. Some of the financing had to be done in the form of external loans, to supplement the domestic resources required to accelerate the pace of economic development and make positive contributions towards developing the country’s infrastructure base.

“These loans were obtained for financing of projects of national importance, budgetary and balance of payments support, earthquake and floods, rehabilitation assistance and import of urea and crude oil,” the ministry said. Another purpose of these loans was to build external buffers to protect against exchange rate volatility and absorb external shocks.

The ministry explained that domestic debt was perpetual in nature and mostly refinanced year-on-year, while most of the external loans contracted by the present government were ‘economical’ and dominated by long-term funding, which would be used to retire the corresponding amount of expensive domestic borrowings. External loans are repaid through budgetary allocations based on the amortisation schedule of each loan.

In its response, the ministry claimed that it had been able — over the past three years — to significantly reduce economic vulnerabilities and had implemented various growth-supporting structural reforms. This had resulted in an improvement in the country’s debt repayment capacity and had allowed it to control expenditures.

For example, the national economy continued to maintain a growth momentum above four per cent for real gross domestic product (GDP) for three years in a row, reaching a growth rate of 4.71pc in 2015-16, the highest in eight years.

On top of that, economic growth was projected to continue its upward acceleration on the back of growth-supporting structural reforms, the ministry said, adding that development projects linked to the China-Pakistan Economic Corridor in the fields of energy and infrastructure were also expected to contribute an additional two percentage points to GDP growth in the years to come.

The government also claimed to have successfully brought down the fiscal deficit from 8.2pc of the GDP in 2012-13 to 4.6pc in 2015-16, with a target to further curtail the budget deficit at 3.8pc of GDP at the end of the current fiscal year, and restrict it to 3.5pc by FY 2018-19.

Moreover, the ministry claimed that despite repayments by the present government of foreign loans worth over $12bn that were obtained by the previous governments, foreign exchange reserves currently stood at over $23bn, up from the $11bn mark at the end of June 2013.

It also claimed to have reduced tax exemptions, leading the tax-to-GDP ratio to increase from 9.8pc in 2012-13 to 12.4pc of the GDP in 2015-16, while public sector investments increased from Rs348bn in 2013 to Rs800bn this year.

Published in Dawn February 6th, 2017

 

[Nicky G]

Not possible, no country can absorb investment of half of size of its economy at once.
Consumption can't run along with it.

Not that I take the figure seriously but CPEC was never for the Paki public, it's to the economic and strategic benefit of the new Paki overlords - the Chinese.

Pakis dont need to consume for CPEC to generate revenue just as Indians didn't need to consume for the British to grow from enslaving us.

Moreover, the Chinese don't need to really generate revenue directly, they'll simply buy more resource rich land in lieu of the debt that is piled on Paki public.

 

[3deffect]

Pakistan's net public debt crosses Rs18 trillion mark

ISLAMABAD: Pakistan’s net public debt has crossed the Rs18.28 trillion mark, rising about 35pc during the tenure of the ruling Pakistan Muslim League-Nawaz (PML-N).

This was reported by the ministry of finance, in response to a question from Pakistan Peoples Party (PPP) MNA Shahida Rehmani in the National Assembly last week. “The volume of net public debt as on Sept 30, 2016 was Rs18,277.6 billion,” the ministry’s response said.

Total public debt stood at Rs13.48tr at the end of fiscal year 2012-13 — almost three years ago. The major contribution to the increase in net public debt came from an almost 40pc rise in domestic debt, which rose from Rs8.686tr at the end of 2013 to Rs12.14tr at the end of the first quarter of the current fiscal year (FY 2016-17).

In the same period, foreign debt posted an increase of 28pc and went from Rs4.796tr in 2013 to Rs6.14tr on Sept 30, 2016.

Explaining the reasons behind the surge, the finance ministry said that public debt was mainly obtained to finance the fiscal deficit and was approved by the parliament. Some of the financing had to be done in the form of external loans, to supplement the domestic resources required to accelerate the pace of economic development and make positive contributions towards developing the country’s infrastructure base.

“These loans were obtained for financing of projects of national importance, budgetary and balance of payments support, earthquake and floods, rehabilitation assistance and import of urea and crude oil,” the ministry said. Another purpose of these loans was to build external buffers to protect against exchange rate volatility and absorb external shocks.

The ministry explained that domestic debt was perpetual in nature and mostly refinanced year-on-year, while most of the external loans contracted by the present government were ‘economical’ and dominated by long-term funding, which would be used to retire the corresponding amount of expensive domestic borrowings. External loans are repaid through budgetary allocations based on the amortisation schedule of each loan.

In its response, the ministry claimed that it had been able — over the past three years — to significantly reduce economic vulnerabilities and had implemented various growth-supporting structural reforms. This had resulted in an improvement in the country’s debt repayment capacity and had allowed it to control expenditures.

For example, the national economy continued to maintain a growth momentum above four per cent for real gross domestic product (GDP) for three years in a row, reaching a growth rate of 4.71pc in 2015-16, the highest in eight years.

On top of that, economic growth was projected to continue its upward acceleration on the back of growth-supporting structural reforms, the ministry said, adding that development projects linked to the China-Pakistan Economic Corridor in the fields of energy and infrastructure were also expected to contribute an additional two percentage points to GDP growth in the years to come.

The government also claimed to have successfully brought down the fiscal deficit from 8.2pc of the GDP in 2012-13 to 4.6pc in 2015-16, with a target to further curtail the budget deficit at 3.8pc of GDP at the end of the current fiscal year, and restrict it to 3.5pc by FY 2018-19.

Moreover, the ministry claimed that despite repayments by the present government of foreign loans worth over $12bn that were obtained by the previous governments, foreign exchange reserves currently stood at over $23bn, up from the $11bn mark at the end of June 2013.

It also claimed to have reduced tax exemptions, leading the tax-to-GDP ratio to increase from 9.8pc in 2012-13 to 12.4pc of the GDP in 2015-16, while public sector investments increased from Rs348bn in 2013 to Rs800bn this year.

Published in Dawn February 6th, 2017

Abhi toh yeh porki india ko CPEC against bol rhe h. but ek din aayega jab yahe porki kahenge Ager humne india ki sun lee hoti toh aaj hum slaves nhe hote

 

[Kshatriya87]

Abhi toh yeh porki india ko CPEC against bol rhe h. but ek din aayega jab yahe porki kahenge Ager humne india ki sun lee hoti toh aaj hum slaves nhe hote

Their country is already in a massive debt. Letting the chinese in is only going to put them under another massive debt from china which they won't be able to repay. Pitch comes to shove, pakis will start selling their land to china or forever remain in their debt.

 

[Tarun Kumar]

Chinese and Pak army are ready with the gameplan to sell POK and Gwadar along with valuable mines in Baluchistan to Chinese to pay back these debts. Pak army as usual will get a cut from these sales.

 

[Kshatriya87]

Chinese and Pak army are ready with the gameplan to sell POK and Gwadar along with valuable mines in Baluchistan to Chinese to pay back these debts. Pak army as usual will get a cut from these sales.

Of course. Pakis can't develop tech for thorium power. pakis can sell thorium and other resources to china.

 

[Indx TechStyle]

Of course. Pakis can't develop tech for thorium power. pakis can sell thorium and other resources to china.

Pakistan has thorium reserves? How much estimated? @Neo

 

[Indx TechStyle]

Truck assemblers use old technology, claim Euro II compliance
KARACHI: Most assemblers of heavy commercial vehicles (HCV) are using old technology engines while claiming Euro II compliance, an assertion hard to believe keeping relevant international standards in view.

Market sources said assemblers have introduced turbocharger and intercooler models, which were not Euro-II compliant. Only one Japanese heavy vehicles assembler said it has introduced common rail smart engine (CRSE) in Pakistan.

The international truck market is far ahead of Pakistan’s in engine technology. It is expected that by June 2017, the share of Euro II diesel (low-sulphur diesel) will reach 85 per cent in Pakistan.

In 2012, Hinopak, Ghandhara Nissan Ltd (GNL), Master Motors and Ghandhara Industries Ltd (GIL) took stay order from the Sindh High Court due to non-availability of Euro II diesel. After several extensions, the current deadline has been set at June 30.

In response to Dawn’s queries, assemblers offered contrasting views. A marketing department official in GIL said the company was the pioneer of introducing locally assembled Isuzu brands of trucks, prime movers and buses with Euro II CRSE that complies with international emission standards.

Khalid Mehr, senior general manager marketing and sales at GNL, said the company offered Euro II engines, manufactured by Cummins, in all of its Dongfeng truck models.

When asked assemblers have introduced turbocharger and intercooler models claiming to be Euro II compliant vehicles, he said as long as these engines were certified by the manufacturer they have to be accepted for Euro II compliance.

“Customers are very smart. They know common rail engines very well but unfortunately there is no aftermarket support for repair in case engines needs overhaul. Besides, the cost of repair is also high for common rail engines. That is the reason common rail engines are not preferred by customers,” he said.

Head of Strategic Business Planning and Plant Operations at Hinopak Motors Ltd Naushad Riaz said Euro II and common rail engines were two different categories.

He said all Euro II vehicles required turbochargers and intercoolers which were integral parts of the Euro II engines. All assembles register their products at the Engineering Development Board whenever there is a change in specification/models.

He said that in the international market, advanced versions have already been launched and vehicles with Euro VI engines were on roads. In Pakistan, all manufacturers offer advanced engine versions in their products. However, they cannot introduce high-tech categories as they require high grades of fuel. If fuel is available then they have no reason to continue current versions.

He said Hinopak launched its first Euro II vehicle in 2004-05 and in 2014 the company completely switched over all its models to Euro II category.

Muhammad Tahir Javed, director marketing and sales at Afzal Motors and Daewoo Pak Motors, said that under the existing situation regarding Japanese brands, natural aspirated engines can only achieve Euro I emission standards.

It is essential to improve the engine technology to achieve higher level of fuel efficiency coupled with minimised emission of carbon oxide (CO), hydrocarbon (HC) and nitrogen oxide (NOx). Thus, turbo charger and intercooler are added in basic engines.

He said it was not necessary to have common rail technology to achieve Euro-II emission standards as there were a lot of engines available worldwide with electronic fuel injection complying Euro III emission standards.

Mr Javed said most of the Chinese trucks and buses launched in last few years were Euro II. He said almost all the engine manufacturers have now stopped producing Euro I engines in China. In most countries, Euro II is the minimum standards as all the Asian countries like Thailand, Malaysia and Indonesia are either Euro III or Euro IV.

He said all the Daewoo trucks and buses were upgraded to Euro II engines last year.

 

[Kshatriya87]

Pakistan has thorium reserves? How much estimated? @Neo

Detailed estimate is not available but thorium oxide has been found in Badar near Mardan.

 

[bengalraider]

Detailed estimate is not available but thorium oxide has been found in Badar near Mardan.

Some General or Neta will just sell the Mine to the Chinese for Baksheesh!
The Fact is Paksiatani's have given up on independence, there is not one Pakistani memeber on this forum who can name an instance when the Pakistani parliament stood up to the chinese for safeguarding Pakistani interests. They have decided to go with Economic slavery insted of independent growth !

 

[Kshatriya87]

Some General or Neta will just sell the Mine to the Chinese for Baksheesh!
The Fact is Paksiatani's have given up on independence, there is not one Pakistani memeber on this forum who can name an instance when the Pakistani parliament stood up to the chinese for safeguarding Pakistani interests. They have decided to go with Economic slavery insted of independent growth !

That's because paki decisions are not made in parliaments. They are made in ISI HQ & Army HQ.

 

[Kshatriya87]

Saudi Arabia deports 39,000 Pakistanis in 4 months: Report

http://dhunt.in/1WlPP?ss=com.apple.UIKit.activity.CopyToPasteboard&s=i

via Dailyhunt


Sent from my iPhone using Tapatalk

 

[Kshatriya87]

Panel finds anomalies as circular debt swells to Rs370b

ISLAMABAD:

The energy sector’s circular debt surged sharply to Rs370 billion in the wake of the expiry of International Monetary Fund programme, after a parliamentary body probing wrongdoings in Rs480 billion debt payments of 2013 decided to expand the scope of its inquiry.


As of the end of January this year, the flow of circular debt amounted to roughly Rs370 billion –a net addition of Rs50 billion over the past seven months, sources in the ministries of water and power and finance told The Express Tribune.

For the first time in the country’s history, the total flow and stock of circular debt cumulatively grew to a whopping Rs705 billion, including the Rs335 billion parked by the government in the Power Holding Company Limited (PHCL).

The finance ministry slowed down payments of subsidies and other financial obligations following the expiry of the IMF programme, said the sources. The programme expired in September last year.

Another reason was persistently high transmission and distribution losses and relatively low electricity bill recoveries.

The government also breached its commitment that it gave to the IMF to retire the circular debt that it parked in PHCL by selling stakes in power distribution companies (DISCOs). After three profitable distribution companies, Mepco, Iesco and Fesco, reported losses, these DISCOs could no longer be listed on the Pakistan Stock Exchange (PSX).

Meanwhile, the Senate’s sub-committee on finance, investigating Rs480 billion circular debt payments by the PML-N government in 2013, decided to broaden the scope of its inquiry.

Headed by Senator Mohsin Aziz of the Pakistan Tehreek-e-Insaf, the panel decided to focus on a report compiled by the Auditor-General of Pakistan (AGP) on the clearance of circular debt.

The report showed that the PML-N government had failed to adequately verify all claims before retiring the circular debt and made ‘avoidable payments’ amounting to Rs165 billion to power producers.

Audit objections belied the incumbent government’s claim that its current tenure was not marred by any major scandal.

According to the AGP report, the PML-N government cleared the entire circular debt on June 28, 2013 without performing a mandatory pre-audit function.

According to the report, the finance ministry disregarded a pre-agreed release mechanism, bypassing the Accountant-General of Pakistan Revenue (AGPR) and directing the State Bank of Pakistan (SBP) to release the money.

On Wednesday, a finance ministry official insisted that the pre-audit mechanism was bypassed because of an emergency, saying that pre-audit was a “time consuming exercise”.

The sub-committee did not agree with this assertion.

An AGPR official informed the subcommittee that it took between one and three days to perform the pre-audit function.

Fresh disclosures made in a meeting of the sub-committee showed that Independent Power Producers (IPPs) did not fulfill all their commitments that they had made to the government despite receiving full payment. They failed to convert 1,500 megawatts of their generation capacity to coal: under a 2013 deal, they were bound to do so in two years.

The IPPs took the government to the International Court of Arbitration after the government withheld payments amounting to Rs22.9 billion on account of liquidated damages, said Joint Secretary at the Ministry of Water and Power Zargham Eshaq Khan.

These damages had been imposed on the IPPs for not generating electricity despite receiving fuel and demand from the government.

The AGP report also stated that the payment of Rs342 billion to the Pakistan Electric Power Company (Pepco) was irregular. Pepco subsequently made payments to the IPPs.

The sub-committee asked the AGP to attend its next meeting for defending the departmental report.

Furthermore, the government paid Rs31.7 billion in ‘late payment charges’, which auditors said was avoidable. The auditors also objected to non-cash adjustment of Rs25.1 billion, terming it “unjustifiable”.

The IPPs were further favoured when the government made another “unjustified payment” amounting to Rs18.5 billion on account of General Sales Tax. Inland Revenue member Rehmatullah Wazir informed the sub-committee that the government had not consulted the FBR before making the GST-related payment.

This showed that the government made all payments to the IPPs without verification from departments concerned, said Senator Kamil Ali Agha, a member of the subcommittee.

The AGP report also cited an objection over excess payments to IPPs by applying maximum currency exchange rate.

The water and power ministry said that this objection was valid and the government had started recovering the amount.

Published in The Express Tribune, February 9th, 2017.

 

[IndianHawk]

https://tribune.com.pk/story/1322240/pakistan-borrow-600m-china/

More borrowing.

ISLAMABAD: Pakistan has decided to borrow $600 million from China to boost its dwindling foreign currency reserves that have depleted by $1.7 billion since expiry of the International Monetary Fund programme.

It is the second time in the last three years that the Pakistan Muslim League-Nawaz government has decided to ask a friendly country to boost its foreign currency reserves. Earlier, Saudi Arabia had gifted $1.5 billion to Pakistan in two equal tranches in 2014.


Saudi still donating to pakistan
Shouldn't china be investing into CPEC rather than lending

 

[Indx TechStyle]

have depleted by $1.7 billion since expiry of the International Monetary Fund programme.

Still no shame in calling India poor!

 

[IndianHawk]

Still no shame in calling India poor!

Funny thing is while Chinese are only lending money to pakistan but chinese are investing heavily in India . So much for sino-pak friendship higher than debt:biggrin2:​

 

[hriday]

thats way pakistan become economic power................

 

[Kshatriya87]

Funny thing is while Chinese are only lending money to pakistan but chinese are investing heavily in India . So much for sino-pak friendship higher than debt:biggrin2:​

Deeper than Bheek.