Pakistan Economy: News & Discussion

[Butter Chicken]

Foreign debt servicing increases by 53pc

KARACHI: Pakistan’s foreign debt servicing amounted to $8.16 billion in 2016-17, up 53 per cent from the preceding fiscal year.

The State Bank of Pakistan (SBP) reported on Thursday that the country paid $6.54bn in principal and $1.62bn in interest during the last fiscal year.

Foreign debt servicing amounted to $5.32bn in 2015-16.

In the first, second and third quarters of 2016-17, debt servicing payments were $1.55bn, $1.25bn and $2.43bn, respectively. In the last quarter, the country paid $2.92bn.

The figure can go further up in 2017-18 as the government has been accumulating dollars through commercial borrowing. It borrowed $4.4bn at commercial rates in 2016-17 in an attempt to maintain foreign exchange reserves of the SBP.

FALLING RESERVES: Despite commercial borrowing, the government could not contain the drop in reserves. The central bank lost about $4.64bn between October 2016 and Sept 15.

Another SBP report issued on Thursday noted that the SBP’s reserves fell $474 million to $14.28bn during Sept 8 and 15. It showed that commercial borrowing could not increase foreign exchange reserves, although it helped prevent their rapid depletion.

The country has been struggling to meet its increasing trade deficit, which was being bridged largely through remittances that also dropped in 2016-17.

The current account deficit also touched the record high of $12.1bn in the last fiscal year.

Some positive developments have taken place on the external front in recent months. Remittances, exports and foreign direct investment have grown since the beginning of 2017-18.

However, the trade deficit for July-August widened to over $6bn, which is reflective of a poor balance of trade going forward.

The exchange rate remained largely stable during 2016-17. Experts believe a sharp increase in debt servicing can destabilise the exchange rate in the future.

The government has not yet approached the International Monetary Fund to shore up foreign exchange reserves. It is instead planning to borrow from the international market through Islamic bonds. The amount can be in the range of $500m to $1bn.

https://www.dawn.com/news/1359161

 

[Vijyes]

Saudi Arabia to invest in CPEC to help 'brotherly' Pakistan:

http://zeenews.india.com/asia/saudi-arabia-to-join-brotherly-pakistan-in-cpec-project-2045115.html

 

[IndianHawk]

Saudi Arabia to invest in CPEC to help 'brotherly' Pakistan:

http://zeenews.india.com/asia/saudi-arabia-to-join-brotherly-pakistan-in-cpec-project-2045115.html

Oil era is gone . In few years Saudi will be begging money from Bangladesh:biggrin2:

Idiot Saudis are planning to invest 10 billion in tourism to diversify economy as of anybody is going to Sharia hell hole to have fun

Bankruptcy countdown for Arabia has begub

 

[tsunami]

^^^ So you think oil prices will never go up. As far as I know it was down to 26 $ per barrel and now it is already double up to 52. Many Arab countries can do with that price. If it goes to 75-80 $ per barrel, that should work for Saudi too.

 

[IndianHawk]

^^^ So you think oil prices will never go up. As far as I know it was down to 26 $ per barrel and now it is already double up to 52. Many Arab countries can do with that price. If it goes to 75-80 $ per barrel, that should work for Saudi too.

Oil game is changed forever. Prices will be in range of 50-60 mostly. They will move higher only temporarily.

Reasons -- shale technology will spread to china , Russia , Asia and in Latin America.
So expect more oil production in coming decades at lesser cost. In India too efforts are ongoing.
Electric cars are coming faster then anticipated. Removing huge oil demands.
China is slowing also removing huge demand
( Look at long term not short term)

Yes Arab can make profit at 50$ oil too but they will have to stop using oil money for foreign policy or subsidy etc. That means austerity that also means subdued growth .

Saudi just announced 80% hike for domestic oil prices , this will reduce demand for oil in Saudi itself because people will stop wasting oil.

Oil prices will only jump higher temporarily in long term they will further decline.

PS Japan china India and USA are already working on fire ice ( much more reserves than oil )

 

[Dovah]

Oil game is changed forever. Prices will be in range of 50-60 mostly. They will move higher only temporarily.

Reasons -- shale technology will spread to china , Russia , Asia and in Latin America.
So expect more oil production in coming decades at lesser cost. In India too efforts are ongoing.
Electric cars are coming faster then anticipated. Removing huge oil demands.
China is slowing also removing huge demand
( Look at long term not short term)

Yes Arab can make profit at 50$ oil too but they will have to stop using oil money for foreign policy or subsidy etc. That means austerity that also means subdued growth .

Saudi just announced 80% hike for domestic oil prices , this will reduce demand for oil in Saudi itself because people will stop wasting oil.

Oil prices will only jump higher temporarily in long term they will further decline.

PS Japan china India and USA are already working on fire ice ( much more reserves than oil )

Methane Hydrate is a dirty fuel source and India does not have any deposits worth mentioning. Indian energy future is solar and nuclear.

 

[Vijyes]

@IndianHawk and @Chinmoy very nice posts. Really valid points.
IMHO we already have a MT range weapon as a blueprint.

Yeah, that's what struck me too, he talks of fusion boosted fission. The maximum power of this design is still derived from fission and fusion just boosts the reaction with more neutrons. I bet we have this in our warheads even before Shakti series of tests. There is no doubt that India always has a credible deterrent when our threats are Pakistan and China.
As you rightly mentioned, it is fission boosted fusion (Teller-Ulam) which should be our target. Deliverable warheads of MT range are only possible in Teller-Ulam/Sloika design.

You have really hit the bull's eye. It would be in'credible' to think we would not have MT even after 20 years of Shakti.


Yeah, you would be right. Except for the fact that all our so called friends (read USA and West) would call us out in a matter of minutes even if we didn't claim them. In fact, not claiming them would be foolish as some scientist or the other sources would always leak and intelligence agencies of world powers always find out anyway. Also, claiming TN tests is the right thing to do. That is how MAD works.
You know I have a 6 foot sabre, I know you have 5.9 foot sabre, so I am sure that both of us will be destroyed in case we fight with them and that would stop me from attacking you in the first place.
This is also another way that deterrence works.

Oil game is changed forever. Prices will be in range of 50-60 mostly. They will move higher only temporarily.

Reasons -- shale technology will spread to china , Russia , Asia and in Latin America.
So expect more oil production in coming decades at lesser cost. In India too efforts are ongoing.
Electric cars are coming faster then anticipated. Removing huge oil demands.
China is slowing also removing huge demand
( Look at long term not short term)

Yes Arab can make profit at 50$ oil too but they will have to stop using oil money for foreign policy or subsidy etc. That means austerity that also means subdued growth .

Saudi just announced 80% hike for domestic oil prices , this will reduce demand for oil in Saudi itself because people will stop wasting oil.

Oil prices will only jump higher temporarily in long term they will further decline.

PS Japan china India and USA are already working on fire ice ( much more reserves than oil )

Methane Hydrate is a dirty a fuel source and India does not have any deposits worth mentioning. Indian energy future is solar and nuclear.

These fire ice is called 'NGL' - Natural Gas Liquid. It is not available in large quantities as only 2% of gas energy is hydrates.

 

[LordOfTheUnderworlds]

Saudis are probably investing in their food security. Like the chinese would like to occupy a chunk of Pakistan for military/naval base; Saudis would like to have a chunk of fertile Pakistani land as their own Jagir to grow food using cheap slave labour. With their food supply secured and their oil reserves, they will have good buffer to help sail through any economic ups and downs.
What we need to remember is that it is all at the cost of India's security. Pakistan is basically Indian land and now these shameless people are selling it off to foreigners. Indian agencies should should have a policy of zero tolerance to any such colonizing attempts by foreign powers.

 

[Vijyes]

Saudis are probably investing in their food security. Like the chinese would like to occupy a chunk of Pakistan for military/naval base; Saudis would like to have a chunk of fertile Pakistani land as their own Jagir to grow food using cheap slave labour. With their food supply secured and their oil reserves, they will have good buffer to help sail through any economic ups and downs.
What we need to remember is that it is all at the cost of India's security. Pakistan is basically Indian land and now these shameless people are selling it off to foreigners. Indian agencies should should have a policy of zero tolerance to any such colonizing attempts by foreign powers.

Pakistan is on the verge of food insecurity. It is almost consuming everything it produces and lack additional water to produce more. Maybe 15-20% more population can be tolerated for Pakistan. Anything more will make Pakistan food insecure. Saudis can't get anymore food from Pakistan

 

[Dovah]

Pakistan is on the verge of food insecurity. It is almost consuming everything it produces and lack additional water to produce more. Maybe 15-20% more population can be tolerated for Pakistan. Anything more will make Pakistan food insecure. Saudis can't get anymore food from Pakistan

This is assuming that Pakis will think twice before starving their own people for cash. Saudis will do to Pakistan what the British did to Ireland and India.

 

[IndianHawk]

Methane Hydrate is a dirty fuel source and India does not have any deposits worth mentioning. Indian energy future is solar and nuclear.

These fire ice is called 'NGL' - Natural Gas Liquid. It is not available in large quantities as only 2% of gas energy is hydrates.

India has huge deposits of gas hydrates .
Found by joint research of USA Japan and India.
https://www.usgs.gov/news/large-deposits-potentially-producible-gas-hydrate-found-indian-ocean

 

[IndianHawk]

This is assuming that Pakis will think twice before starving their own people for cash. Saudis will do to Pakistan what the British did to Ireland and India.

Saudis are only a united kingdom because of oil wealth. Lower oil prices will make Saudi unstable. USA is now energy independent. It will only protect Saudi king for arm purchase. Saudi will be bankrupted by USA arms dealer or there will be freedom and democracy rebellion in Saudi soon!!

Saudi are in deep deep trouble.

 

[sorcerer]

Saudis are probably investing in their food security. Like the chinese would like to occupy a chunk of Pakistan for military/naval base; Saudis would like to have a chunk of fertile Pakistani land as their own Jagir to grow food using cheap slave labour. With their food supply secured and their oil reserves, they will have good buffer to help sail through any economic ups and downs.
What we need to remember is that it is all at the cost of India's security. Pakistan is basically Indian land and now these shameless people are selling it off to foreigners. Indian agencies should should have a policy of zero tolerance to any such colonizing attempts by foreign powers.

Actually, chinese wants to occupy pakistan for the fertile land.
chinese have already got huge areas of land for their "pilot project" on agriculture at cheap costs.
china knows very well that they face some natural dangers and they want fertile land for their agriculture + pakistani slaves will work for chinese for free to uphold deeper than deepest friendship.

we have to understand that china is building dams in some vital areas on pakistan to bring it into effect on their plan for agriculture in pakistan.

How China's Growing Deserts Are Choking The Country
And in addition to the severe environmental consequences, China’s rapid desertification poses a serious political threat to Beijing. As towns get swallowed by deserts, so do their economies, and the government is forced to continue moving people away from degraded lands. Between 2003 and 2008, 650,000 people living in China’s Inner Mongolia province were forcibly resettled. To make things worse, China is already teetering on the edge of a food scarcity crisis, and considering the country lost 6.2% of its farmland between 1997 and 2008 while its population grew by almost 100 million people, desertification poses a severe risk to food security. It’s almost impossible to turn a desert back into land fit for agriculture, but excuses matter little to starving populations.

https://www.forbes.com/sites/daniel...deserts-are-choking-the-country/#429ba94e5d1b

 

[IndianHawk]

http://www.thehindu.com/news/intern...ough-prices-soar-minister/article19757688.ece

Porkies paying 300 porki rupee for 1 kg tomato. But won't import from India to save foreign exchange

 

[Butter Chicken]

एशियन विकास बैंक ने पाकिस्तान को दी चेतावनी कर्ज चुकाओ वरना इकॉनमी डूबने वाली है : PAK MEDIA
(After World Bank,ADB warns that Pak economy is about to crash)

 

[Butter Chicken]

Pak Media saying Ishaq Dar is foreign agent,has destroyed Pak economy and will now have to give up its nuclear weapons in order to survive as a state

 

[Willy2]

Climate change going to kill Pakistan...also these river in Indus catchments are erratic like woman...ask our ancestors in IVC why they need to left well establish cities and why they build cities away from River ?
These rivers are very vulnerable to climate change and any type of resistance , slightest earthquake can change their direction

Also , there are many empty channel of these river of past just lie there in whole Punjub , they can change any course whenever they want , chinese sponsored dam project make thing worse for sure...

There are heavy chances that current fertile land might turn into desert in next 50 years

 

[Mikesingh]

https://tribune.com.pk/story/1511129/international-litigation-pakistan-slapped-700m-fine-rpp-case/

Bloody porkies slapped fine of 700 million $$. Being liars by birth porki govt ( read military) tried to hide it by requesting Turkish company not to disclose details.

Anyway they got caught.

Previously habib bank was fined almost 800 million. Now porkies have to pay 1.5 billion $$ fines . :biggrin2:

Chaddiya bik jayengi. ​

More ....

Karkey’s case is not the only one where Pakistan had to bite the dust. In the Reko Diq case, the ICSID dismissed Pakistan’s allegations of corruption against the Tethyan Copper Company Pty Ltd (TCC). Later, the TCC made a claim of $11.5 billion but Pakistan’s rejected it. Now the quantum stage has started, with both federal and Balochistan governments involved, and the TCC may agree to an out-of-court settlement.

Lol!! Do these morons even know what they're doing?

 

[Mikesingh]

Methane Hydrate is a dirty fuel source and India does not have any deposits worth mentioning. Indian energy future is solar and nuclear.

India has long been known to have massive deposits of methane hydrate. These are tentatively estimated at 1,890 trillion cu.m.

An Indo-US scientific joint venture in 2006 explored four areas: the Kerala-Konkan basin, the Krishna-Godavari basin, the Mahanadi basin and the seas off the Andaman Islands. The deposits in the Krishna Godavari basin turned out to be among the richest and biggest in the world. The Andamans yielded the thickest-ever deposits 600 metres below the seabed in volcanic ash sediments. Hydrates were also found in the Mahanadi basin.

https://ktwop.com/2013/03/17/fire-ice-methane-hydrate-success-in-japan-gets-india-all-excited/

However, nobody has yet found an economic way of extracting gas from hydrates. As you said, solar and battery power is the way forward.

 

[Vijyes]

India has long been known to have massive deposits of methane hydrate. These are tentatively estimated at 1,890 trillion cu.m.

An Indo-US scientific joint venture in 2006 explored four areas: the Kerala-Konkan basin, the Krishna-Godavari basin, the Mahanadi basin and the seas off the Andaman Islands. The deposits in the Krishna Godavari basin turned out to be among the richest and biggest in the world. The Andamans yielded the thickest-ever deposits 600 metres below the seabed in volcanic ash sediments. Hydrates were also found in the Mahanadi basin.

https://ktwop.com/2013/03/17/fire-ice-methane-hydrate-success-in-japan-gets-india-all-excited/

However, nobody has yet found an economic way of extracting gas from hydrates. As you said, solar and battery power is the way forward.

Extracting hydrates from 100km off the coast will consume too much energy. How do you think it is possible to maintain a station there and drill holes? Logistics will just kill.

Solar and wind are unstable and unreliable. Coal liquefaction is the only way to go