Pakistan Economy: News & Discussion

[kamaal]

If imports have shrunk so suddenly it means they don't have any money to import anything. Though i was hoping that they would keep their imports high and worsen their trade deficit and forex reserves. I'm still wondering when we can expect real recession in the paki economy. (-4% GDP growth).

If they don't import it also means inflation.

 

[Brimstone]

hope it not posted!!

Polio infested terror Porkis remain as porkis

What ? They sold their country for dollars and now they're burning it ? Somebody can get a 3 course meal out of that amount.

 

[Haldiram]

What ? They sold their country for dollars and now they're burning it ? Somebody can get a 3 course meal out of that amount.

Itna dimaag unme hota toh woh Muslim nahi hote

 

[Haldiram]

BoI chairman quits, finance secretary also set to be replaced

ISLAMABAD: Board of Investment (BoI) chairman Haroon Sharif, who was appointed eight months ago, tendered his resignation to Prime Minister Imran Khan on Wednesday. Later in the day reports emerged that Secretary Finance Younus Dagha is also likely to be replaced within days.

 

[Mikesingh]

I am eagerly waiting for 11 jun when their budget will be presented under tough conditions of IMF where they have to collect 700 billion rupees of extra tax, primary surplus of 0.6 percent of GDP they have to show. It’s going to bring a tsunami of inflation.

And waiting for the June verdict of the FATF when they would hopefully include Pak in the black list. That will spell the death knell of Pak as we know it. The final nail in the coffin.

 

[nongaddarliberal]

Is there any possible recovery path for pakistan, even remote?

 

[Vijyes]

Is there any possible recovery path for pakistan, even remote?

Yes, by selling themselves to Saudi Arabia and agreeing to be loyal to Arabs, Pakistan economy can double iby 2025.

 

[Brimstone]

Is there any possible recovery path for pakistan, even remote?

There is but there are some organizations inside Pak controlled by foreign powers that won't let it happen.

 

[Haldiram]

Is there any possible recovery path for pakistan, even remote?

Yes, very much. One cheque from US aid agency and they'll have extended their existence by a couple of years. They won't live in luxury but it would be enough to pay for energy, food and sustenance needs (just enough for them to prevent a food riot).

 

[nongaddarliberal]

Yes, very much. One cheque from US aid agency and they'll have extended their existence by a couple of years. They won't live in luxury but it would be enough to pay for energy, food and sustenance needs (just enough for them to prevent a food riot).

How much aid can the US possibly give? They need at least 15 billion dollars a year to plug their trade deficit, which isn't made up for by FDI and remittances like us. At this rate I expect them to go to the IMF again next year.

 

[Haldiram]

Pakistan government likely to reverse tax concessions for salaried class

 

[Haldiram]

Basically the US is driving Pakistan's economic policy from the back seat now. They will give the money through various orgs, and they will themselves provide American consultants to manage the utilization of the money.

The US can print more $ and inflict inflation on other world currencies, but still sustain their Pakistan project. It's too important for them.

How much aid can the US possibly give? They need at least 15 billion dollars a year to plug their trade deficit, which isn't made up for by FDI and remittances like us. At this rate I expect them to go to the IMF again next year.

The US has sustained this bastard baby for so many years, they aren't going to let it collapse. They will send their economic advisers, prescribe some austerity measures and give them some spare change to survive.

Pakistan reaches agreement with IMF, to receive $6 billion over 3 years

It's India's job to keep so much military pressure on them that they keep spending all the aid they receive on military instead of their civil institutions, much to the frustration of the aid givers. The trick is to keep the milk at a boiling point but never let it spill over to the point where the US is convinced that an Indian invasion is coming and feels the compulsion to give more money to back up this dying dog. It takes at least 5 years of sustained inflation for a nation to become starving (case : Ukraine, Venezuela, Syria), for its institutions to become weak and start crippling, for the rich, opportunist elites to start liquidating their assets and fleeing with their capital to other nations. It has just begun for Pakistan. A few years later, the hole will be so big, the US wont have the spare cash to fill it.

 

[Haldiram]

Market support fund gets formal go ahead

Accepting the demand of stockbrokers, the government on Thursday approved Rs20 billion fund to support struggling stock market through state-run National Investment Trust (NIT).

 

[HariPrasad-1]

BoI chairman quits, finance secretary also set to be replaced

ISLAMABAD: Board of Investment (BoI) chairman Haroon Sharif, who was appointed eight months ago, tendered his resignation to Prime Minister Imran Khan on Wednesday. Later in the day reports emerged that Secretary Finance Younus Dagha is also likely to be replaced within days.

And I am sure that they will replace them with much worse guy for that position like Porkis bring Imran Khan in place of Nawaz sharif, They thought their destiny will change like India after Modi coming in. Their destiny changed but in reverse way. Their PKR fell by 50 pc since ouster of Nawaz.

 

[IndianHawk]

Is there any possible recovery path for pakistan, even remote?

They spend 70% of their revenue on interest payments and defense spending. If they want to recover this has to change . Because right now they have nothing to invest and without investment there will be no growth in revenue and they will remain in perpetual deficit .

Now interest payments aren't going anywhere because they are heavily indebted and will remain so for long time. So only defense spending can be cut meaningfully.

But knowing paki mentality of warrior race , ilzam fort etc etc they won't cut defense spending but would rather cut development spending and create a deeper sink hole for themselves.

Meanwhile paki army / isi will find itself useful as a genia pig for either USA or China and keep getting something to survive like a crippled nation for as long as they can .

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[Vijyes]

They spend 70% of their revenue on interest payments and defense spending. If they want to recover this has to change . Because right now they have nothing to invest and without investment there will be no growth in revenue and they will remain in perpetual deficit .

Now interest payments aren't going anywhere because they are heavily indebted and will remain so for long time. So only defense spending can be cut meaningfully.

But knowing paki mentality of warrior race , ilzam fort etc etc they won't cut defense spending but would rather cut development spending and create a deeper sink hole for themselves.

Meanwhile paki army / isi will find itself useful as a genia pig for either USA or China and keep getting something to survive like a crippled nation for as long as they can .

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The debt are entirely in foreign exchange. The biggest drain on Pakistan is foreign exchange outgo due to high imports. Major imports is defence. So, Pakistan needs to indigenise defence or reduce defence imports.

Pakistani problem is not spending on defence but 'importing for defence'. So, if Pakistan can indigenise defence, even then it will reduce debt. The main problem of Pakistan is that it lacks scientists and engineers who can think logically and get things done. Due to extreme illogical madrassa education, Pakistan is unable to produce any decent engineer or scientist. This is the main problem. If Pakistan had indigenous defence, defence expenditure would not have harmed Pakistani economy.

 

[IndianHawk]

The debt are entirely in foreign exchange. The biggest drain on Pakistan is foreign exchange outgo due to high imports. Major imports is defence. So, Pakistan needs to indigenise defence or reduce defence imports.

Pakistani problem is not spending on defence but 'importing for defence'. So, if Pakistan can indigenise defence, even then it will reduce debt. The main problem of Pakistan is that it lacks scientists and engineers who can think logically and get things done. Due to extreme illogical madrassa education, Pakistan is unable to produce any decent engineer or scientist. This is the main problem. If Pakistan had indigenous defence, defence expenditure would not have harmed Pakistani economy.

Not really. Soviet Union has indegenios defense and space program. Yet it went bankrupt as defense / space spending crowded out all investment and without investment revenue dwindled and dwindled.

Local arms industry could save dollars and manage Forex crises but it doesn't solve fundamental revenue shortfall.

And Pakistan is too small a economy and industrially backwards to actually indegenize any major defense product. Need I remind they can't even manufacture a car!

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[Indx TechStyle]

Is there any possible recovery path for pakistan, even remote?

Yes. But the solution would be for the long term. It'd be effort to establish new industries that are viable for Pakistan and continous de-appreciation of currency to boost exports.


Simply, economy will have continue to remain stagnant for some 10-20 years for restructuring before starting to function actually. Matching growths of other countries in subcontinent is out of question even at best pace. Pakistan will be close to Afghanistan.

If doesn't learn, it will be even far behind Afghanistan.

The debt are entirely in foreign exchange. The biggest drain on Pakistan is foreign exchange outgo due to high imports. Major imports is defence. So, Pakistan needs to indigenise defence or reduce defence imports.

Pakistani problem is not spending on defence but 'importing for defence'. So, if Pakistan can indigenise defence, even then it will reduce debt. The main problem of Pakistan is that it lacks scientists and engineers who can think logically and get things done. Due to extreme illogical madrassa education, Pakistan is unable to produce any decent engineer or scientist. This is the main problem. If Pakistan had indigenous defence, defence expenditure would not have harmed Pakistani economy.

If Pakistani industry was capable of making anything substantial than textiles, leave alone defnce, they wouldn't have landed in this trouble at first place. Besides automotive assembly (that even at a very small scale), Pakistan doesn't have any modern industry.

Unlike India who grew very fast after liberalisation because products were already diverse, it won't work for Pakistan. They don't have any base yet.

Our another neighbor called Bangladesh too possesses same kind of economy. However, they are in good shape because they don't waste money unlike Pakistan to become a mega regional power in "South Asia" and involve in imaginary nuclear, arms and space races in the "region".

India itself is 80% of this region and sole regional power by default.

 

[suny6611]

http://www.defencenews.in/article/F...Budget,-PM-Imran-Khan-appreciates-move-585077



The Pakistan armed forces have decided a voluntary cut in the defence budget for a year in view of the financial crisis of the country, a move which Prime Minister Imran Khan has appreciated. It is to be noted that there will not be a cut in their current budget but the military won't take an increase this year.

Taking to micro-blogging site Twitter, the DG of Inter-Services Public Relations (ISPR), Major General Asif Ghafoor, announced the move. He said that three services will manage the impact of the cut through appropriate internal measures, adding that the step was important for the development of several areas. He also added that the step will not be at the cost of defence and security of Pakistan. Ghafoor asserted that Pakistan will maintain an effective response to all potential threats.

"Voluntary cut in the def budget for a year will not be at the cost of def & security. We shall maint effective response potential to all threats. Three services will manage the impact of the cut through appropriate internal measures. It was imp to participate in dev of tribal areas & Bln," tweeted Ghafoor.

Lauding the move, PM Khan took to Twitter and appreciated the "unprecedented voluntary initiative of stringent cuts" in the defence expenditures for the next financial year. He added that his government will spend the money saved on development of the tribal areas and Balochistan.

"I appreciate Pak Mil's unprecedented voluntary initiative of stringent cuts in their defence expenditures for next FY bec of our critical financial situation, despite multiple security challenges. My govt will spend this money saved on dev of merged tribal areas & Balochistan," tweeted Khan.



did they have any choice ................... beggars can not be choosers

 

[IndianHawk]

http://www.defencenews.in/article/F...Budget,-PM-Imran-Khan-appreciates-move-585077



The Pakistan armed forces have decided a voluntary cut in the defence budget for a year in view of the financial crisis of the country, a move which Prime Minister Imran Khan has appreciated. It is to be noted that there will not be a cut in their current budget but the military won't take an increase this year.

Taking to micro-blogging site Twitter, the DG of Inter-Services Public Relations (ISPR), Major General Asif Ghafoor, announced the move. He said that three services will manage the impact of the cut through appropriate internal measures, adding that the step was important for the development of several areas. He also added that the step will not be at the cost of defence and security of Pakistan. Ghafoor asserted that Pakistan will maintain an effective response to all potential threats.

"Voluntary cut in the def budget for a year will not be at the cost of def & security. We shall maint effective response potential to all threats. Three services will manage the impact of the cut through appropriate internal measures. It was imp to participate in dev of tribal areas & Bln," tweeted Ghafoor.

Lauding the move, PM Khan took to Twitter and appreciated the "unprecedented voluntary initiative of stringent cuts" in the defence expenditures for the next financial year. He added that his government will spend the money saved on development of the tribal areas and Balochistan.

"I appreciate Pak Mil's unprecedented voluntary initiative of stringent cuts in their defence expenditures for next FY bec of our critical financial situation, despite multiple security challenges. My govt will spend this money saved on dev of merged tribal areas & Balochistan," tweeted Khan.



did they have any choice ................... beggars can not be choosers

Last year the budgeted 1.1 trillion PKR for defense (11 billion USD) but actual spending at the end was 1.6 trillion PKR ( 15 billion USD) .

That is 5 % of there GDP . And it's still just officially declared spending. The money goes to isi and money earned and spent by military foundation/ business are separate.

Their voluntary cut might bring it down to 4-4.5 % of GDP if they are really serious. But they are still doomed with this level of profligacy.

And a cut in defense budget will them even weaker against India than they are already to begin with .

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