Pakistan Economy: News & Discussion

[Cutting Edge 2]

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

I heard on PDF that they were buying Su-35, S-300, Mirage, and what not.

They were going to replace India as Russia's major defense customer.

 

[Vijyes]

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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Any source to say that official spending was 50% more than budgeted spending for Pakistani defence? That is quite an overspending spree

 

[suny6611]

I heard on PDF that they were buying Su-35, S-300, Mirage, and what not.

They were going to replace India as Russia's major defense customer.

thats not a laughing matter ....

they r selling their asses ... er er donkeys women(human) & offer their own asses(220 millions) as payment ... so y not
they can buy any thing ............. even F 22

 

[LordOfTheUnderworlds]

Any idea if Pakistani soldiers have received or going to receive any salary increment/ dearness allowance, to compensate for the inflation due to devaluation of Pakistani rupee?

AFAIK Pakistani soldiers' salary is very less compared to Indian soldiers. I am not taking about higher ranked officers, but the huge number of low ranked soldiers. That's one of the reasons (apart from eating up large chunk of national budget, and foreign aid) how they manage to maintain such a large army despite being much smaller economy. The soldiers get compensation in other way later, i.e. they get piece of land/ plot for house after retirement.

With the ongoing inflation, unless their salaries - which are probably just enough to run house - are increased, families of these low ranked Abdul soldiers are going to feel heat.

 

[IndianHawk]

Any source to say that official spending was 50% more than budgeted spending for Pakistani defence? That is quite an overspending spree

https://tribune.com.pk/story/1986464/2-debt-servicing-hit-record-rs2-8-trillion/?amp=1

The sources said the defence budget for the new fiscal year could be Rs1.270 trillion, which will be around 2.9% of GDP. In addition to the defence budget, the armed forces will get another $1.5 billion or Rs250 billion under the Armed Forces Development Programme, said the sources.

For the outgoing fiscal year, the defence budget was Rs1.1 trillion but the finance ministry told the National Finance Commission that by the end of the fiscal year 2019, Rs1.676 trillion would be spent on defence. This is the second biggest expenditure in the budget after debt servicing.



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[suny6611]

https://forums.bharat-rakshak.com/v...d=19fc4ab4bdff3f97c59a65626af2268b&start=3040

by Aditya_V » 21 May 2019 14:53

Does this means that CPEC loans given Chinese Banks for Chinese companies to bring their Chinese personal and Chinese equipment to build infrastructure in Pakistan at above 6.5 Interest were borrowed at 95 PKR to the Dollar have to be repaid at 150 or even 170-180 to the Dollar with Interest- NICE, Talla than the Highest Mountain, deeper than the deepest Ocean Friendship eh



this guy is good !!!!

madrasaa pakis will be able to understand this in a few years ....

 

[Deathstar]

https://forums.bharat-rakshak.com/v...d=19fc4ab4bdff3f97c59a65626af2268b&start=3040

by Aditya_V » 21 May 2019 14:53

Does this means that CPEC loans given Chinese Banks for Chinese companies to bring their Chinese personal and Chinese equipment to build infrastructure in Pakistan at above 6.5 Interest were borrowed at 95 PKR to the Dollar have to be repaid at 150 or even 170-180 to the Dollar with Interest- NICE, Talla than the Highest Mountain, deeper than the deepest Ocean Friendship eh



this guy is good !!!!

madrasaa pakis will be able to understand this in a few years ....

Absolutely foolish pakis think that CPEC will solve their all problems lol , idiots think such articles are conspiracies of the west and India to derail iron biradar

 

[ezsasa]

https://forums.bharat-rakshak.com/v...d=19fc4ab4bdff3f97c59a65626af2268b&start=3040

by Aditya_V » 21 May 2019 14:53

Does this means that CPEC loans given Chinese Banks for Chinese companies to bring their Chinese personal and Chinese equipment to build infrastructure in Pakistan at above 6.5 Interest were borrowed at 95 PKR to the Dollar have to be repaid at 150 or even 170-180 to the Dollar with Interest- NICE, Talla than the Highest Mountain, deeper than the deepest Ocean Friendship eh



this guy is good !!!!

madrasaa pakis will be able to understand this in a few years ....

Just one problem with this theory , Pakistan central bank has allowed PKR-RMB transactions since jan 2018.

I don’t think they are transacting in USD with each other anymore...

They don’t need much of USD for CPEC anyways because all the material and tech is coming from China and no where else.

 

[suny6611]

Just one problem with this theory , Pakistan central bank has allowed PKR-RMB transactions since jan 2018.

I don’t think they are transacting in USD with each other anymore...

They don’t need much of USD for CPEC anyways because all the material and tech is coming from China and no where else.

BUT ...

but

how is the exchange rate decided ... there has to be a reference point to decide it.

like in INR vs UAE currency swap deal prevailing USD rate was kept as reference point.

they buy in INR & we buy in UAE currency till the swapped amount is used out

but with Vietnam it was gold price (with neighboring countries )............. at the time of Vietnam war

 

[ezsasa]

BUT ...

but

how is the exchange rate decided ... there has to be a reference point to decide it.

like in INR vs UAE currency swap deal prevailing USD rate was kept as reference point.

they buy in INR & we buy in UAE currency till the swapped amount is used out

but with Vietnam it was gold price (with neighboring countries )............. at the time of Vietnam war

Just to clarify, i am not saying paki are using RMB for all countries. I am saying they not using USD for currency exchanges with China. if you recall in feb 2019 china infused 15 billion RMB into paki economy, so there is RMB reserves with pakistan which are depreciating at a much lesser rate than USD.

 

[Indx TechStyle]

Defence budget to remain unchanged
Comments for the great ahsaan on public

 

[Brimstone]

Defence budget to remain unchanged
Comments for the great ahsaan on public
View attachment 35741 View attachment 35742

What happened to 'cutting defence budget for betterment of the country' ?
Did Gaffoor got trolled by our media so hard that they decided to keep the budget as it is ???

 

[IndianHawk]

What happened to 'cutting defence budget for betterment of the country' ?
Did Gaffoor got trolled by our media so hard that they decided to keep the budget as it is ???

Like I posted before they overspent as much as 40% last year . From 1.1 trillion PKR budgeted to actual spend of 1.6 trillion PKR . So now they will budget 1.2 trillion PKR and claim that they have cut spending and also they have not cut spending.

But it's all hog wash . reality will only come next year when their actual spend might have crossed 2 trillion PKR.

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[sorcerer]

Pakistan sees 2019 GDP growth at 3.3%, sharply below target

Pakistan's Finance Ministry expects economic growth in the financial year ending in June to hit 3.3%, well below a target of 6.2% set last year, with key sectors all performing worse than expected, according to a planning document seen by Reuters.
https://www.wionews.com/south-asia/pakistan-sees-2019-gdp-growth-at-33-sharply-below-target-225537

 

[ezsasa]

Pakistan sees 2019 GDP growth at 3.3%, sharply below target

Pakistan's Finance Ministry expects economic growth in the financial year ending in June to hit 3.3%, well below a target of 6.2% set last year, with key sectors all performing worse than expected, according to a planning document seen by Reuters.
https://www.wionews.com/south-asia/pakistan-sees-2019-gdp-growth-at-33-sharply-below-target-225537

i wonder is paki economy will ever go into contraction....

 

[IndianHawk]

i wonder is paki economy will ever go into contraction....

On dollar basis it's already contracted.
On real basis it very well could if investment stalls. In current situation investment is steadily declining hence slowdown in growth. 2-3 more years of same situation and investment will stall to 0 then their economy will contract Even in real GDP terms .

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[IndianHawk]

Pakistan sees 2019 GDP growth at 3.3%, sharply below target

Pakistan's Finance Ministry expects economic growth in the financial year ending in June to hit 3.3%, well below a target of 6.2% set last year, with key sectors all performing worse than expected, according to a planning document seen by Reuters.
https://www.wionews.com/south-asia/pakistan-sees-2019-gdp-growth-at-33-sharply-below-target-225537

3.3 % of 300 billion is 10 billion USD. That's their growth. Meanwhile Indian growth is 7% of 3 trillion = 200 Billion USD ++

Bwahaha. It's twenty times more !

And this is not counting the effect of sunken paki rupee which would mean a contraction in their economy rather than any growth.

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[Haldiram]

Sarry bros, posting this in Pakistani economy thread because we don't have a "Pakistanis living in India" economy thread

 

[nongaddarliberal]

i wonder is paki economy will ever go into contraction....

For a developing country, 3.3% is as good as contraction. We threw out the congress government for 5.7% growth. 6.5% is considered a disaster in India whereas the same is their dream growth rate.

 

[IndianHawk]

From paki newspaper.

https://www.thenews.com.pk/print/481953-in-case-of-no-waiver-from-imf

45,00,000 people will go blew the poverty line, as the economy of $313 billion has shrunk to $280 billion which will further reduce to $260 billion in the next budgetary year.


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