Country doesn't has to pay..it can simply default
They aren'tI pity the idiot foreign investors - whoβre buying these bankrupt white elephants in dollars
If it's doesn't matter then why you don't mentioned it. I asked a simple Question,
What's the point? It's a bloody debt trap. Each new govt has to take on more and more new debt to pay off old debt.
I only blamed the govt that put Pakistan in this current debt trap path (Bhutto's first and only govt).
Which all successive govts since Bhutto have collectively failed to do.
Nope, Pakistan wasn't in debt trap in 2008..
Oh, so thatβs why @silicon0000 kept asking me which govt took the most loans? He desperately wanted to blame PTI govt in his Bughaz-e-Imran!
Itβs actually Musharraf who laid the very foundations that exacerbated the debt crisis in the following years. The balance of trade and thus balance of payment crises began under his rule:
We easily forget the 2008 financial crisis
Is this why Pakistanβs exports have stopped increasing exactly after 2010?
@silicon0000
There is a reason why I mentioned BECO and Bhutto, and @Forsvaret did, too, to answer your question about the debt trap on the last page.
1) 70% of borrowed funds is used to service debt. The rest is kicked down the road.
2) Can't get out of debt trap, as since the 1970s, after Bhutto raw dogged the industry, it could never stand up again.
To answer your question on borrowing, PTI borrowed approximately $52 Billion, but this was also due to COVID funds for developing countries, as we all were hit; if we took those funds out, we would be around the same at $50 billion the PML-N did in five years.
However, PTI paid down more debt than its time of three years versus five years of PML-N adjusted for inflation.
In economics, you need to export to bring in funds. BECO and others exported outside, bringing in liquidity, expanding, creating jobs, and building a strong internal consumption economy.
To build industry and attract investors, you need a stable and trustworthy government. Chaudhary Muhammad Latif was offered to return, but he saw what lay before him and opted not to return. Unless you solve investors' confidence problems, you will be going around in a circle. Nobody wants to see those faces we currently have operating the civilian government.
Let me tell you, money doesn't care about patriotism; as a businessman, I have people who rely on me to keep the engine running so they can feed their families; if I can't do it, they move on, and it's the end.
Read this article; it's a little vanilla but will get you a good start:
Pakistan's debt policy has brought us to the brink. Another five years of the same is unsustainable
PTI has been dealt a tough hand but we can't afford to see the party fail.www.dawn.com
Oh, so thatβs why @silicon0000 kept asking me which govt took the most loans? He desperately wanted to blame PTI govt in his Bughaz-e-Imran!
βWeβ failed - or the regime change operation and the resulting destabilization led to that failure?
