FPCCI warns against widespread textile factory closures, unemployment amid high energy tariffs, taxes

Bilal said:
Mien bolo ke na bolo.

Bolo bolo!
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Banda ab kis kis cheez par bolay.

Although we knew this whole hogwash scam from the beginning, interesting that now everyone and their mother is speaking up and newpapers/channels are publishing this.

A sign of things to come? I believe you mentioned something to this effect a while ago? From my understanding, although things are uneasy, there has been some assuring words from one to the other keh tension mat lo. But we all know how much weight those words hold.
 
FuturePAF said:
Aren’t many of the debt payments suppose to come down at the later end of this decade, due to many being paid off? That is off course, unless more new debt is taken out.
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Debt doesn't just pay itself off. You have to either 1) raise revenue or 2) cut expenses or 3) refinance the debt by issuing new one. The first two are very hard to do because some entrenched group or the other will always oppose them.
 
Jango said:
Banda ab kis kis cheez par bolay.

Although we knew this whole hogwash scam from the beginning, interesting that now everyone and their mother is speaking up and newpapers/channels are publishing this.

A sign of things to come? I believe you mentioned something to this effect a while ago? From my understanding, although things are uneasy, there has been some assuring words from one to the other keh tension mat lo. But we all know how much weight those words hold.
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If they end up needing another IMF program, both will drown.
 
@Bilal bhai @Owaiz sb

Due to large deficit we retire debts by taking debt.

Not only Pakistan, but almost every country in the world (barring maybe a few oil rich statelets) repay debt by taking fresh debt. It is good enough if the country's revenues are adequate to cover the interest payment alone.

Coming back to IMF, going by the past track record it is unlikely that Pak will avoid another IMF payment. In my humble opinion, in the next oil price upcycle - around 2028-29. But if PAK can survive 23 IMF references, it can survive a 24th one too.

Regards
 
SoulSpokesman said:
@Bilal bhai @Owaiz sb

Due to large deficit we retire debts by taking debt.

Not only Pakistan, but almost every country in the world (barring maybe a few oil rich statelets) repay debt by taking fresh debt. It is good enough if the country's revenues are adequate to cover the interest payment alone.

Coming back to IMF, going by the past track record it is unlikely that Pak will avoid another IMF payment. In my humble opinion, in the next oil price upcycle - around 2028-29. But if PAK can survive 23 IMF references, it can survive a 24th one too.

Regards
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It is true that the sovereign debt of almost all countries grows, unless restricted by legal mandates. Some like Germany, where hyperinflation in the past lead to disastrous consequences, tend to be a lot more frugal and conservative . But ultimately, what matters is the market's perception of creditworthiness and currency stability , which is reflected in the borrowing rates for the government and companies. Countries with stable economies like the G-7 countries are able to borrow at very low rates despite many of them being highly indebted, but Pakistan's double digit borrowing rates make it harder for the government to service debt as well as renders domestic industry uncompetitive internationally.
 
@Owaiz sb

Pakistan's double digit borrowing rates make it harder for the government to service debt as well as renders domestic industry uncompetitive internationally.

This is true of course. Having said that, PAK struggles but is unlikely to default like SL etc

Regards
 
Bilal said:
Due to large deficit we retire debts by taking debt. At the moment Debt to GDP is around 70%. It needs to be brought down significantly. But to do that, we need to do all the rest that I wrote.
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A good thing the solar adoption has shown is that consumers can fund development in their locales to improve productivity at the limit of what they can afford. Lowering government debt and putting the debt on commercial ventures, if they can acquire it, would mean the rest of the nation won’t be burdened by poor management or delays of government officials. While we can’t get the economies of scale, growth in one area will incentivize other areas to shape up and start to compete, as was the Chinese model between provinces and cities.

Fewer government loans also means less money that could be diverted, to white elephant pet projects but also just skimming.
 
SoulSpokesman said:
@Owaiz sb

Pakistan's double digit borrowing rates make it harder for the government to service debt as well as renders domestic industry uncompetitive internationally.

This is true of course. Having said that, PAK struggles but is unlikely to default like SL etc

Regards
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Sri Lanka is not as useful to countries that control the IMF and can bail Pakistan out - on their own terms, of course.
 
Owaiz said:
Debt doesn't just pay itself off. You have to either 1) raise revenue or 2) cut expenses or 3) refinance the debt by issuing new one. The first two are very hard to do because some entrenched group or the other will always oppose them.
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Yes, debt must be paid, or else no one will lend to you again. Argentina has shown us that. But I recall someone saying the amount of debt, and when it is maturing necessitated higher debt payments this decade. with those payments lowering, as the debt principals were being paid down.

This is then followed by a few major dams coming online at the end of the decade, lowering electricity costs, and cost of doing business, such as in the textile industry, growing the economy and making debt payments also easier.
 
nahtanbob said:
someone has to pay for the military budget
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If by "military budget" you mean military patronized criminals brazenly stealing year in year out from the treasury over the post three decades with impunity. Then yes...otherwise spending on defensive capability is pittance in comparison to the loot sponsored by mi-establishment.
 
Owaiz said:
Debt doesn't just pay itself off. You have to either 1) raise revenue or 2) cut expenses or 3) refinance the debt by issuing new one. The first two are very hard to do because some entrenched group or the other will always oppose them.
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Especially ones holding all the guns...
 
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