General Economic Updates

[Vaqeel]

India's contribution to IMF is 2.76% which means 19.32 Million has been loaned by India.

You're welcome Pakistan!

It's a multilateral loan. IMF's funding comes USA, China, Russia, EU, India, Israel etc.

Pakistanis don't care where the money comes from as long a they get it. But at the same time they'll throw tantrums online if Saudi or Turkey signs business deal with Israel.

 

[Rego]

It's a multilateral loan. IMF's funding comes USA, China, Russia, EU, India, Israel etc.

Pakistanis don't care where the money comes from as long a they get it. But at the same time they'll throw tantrums online if Saudi or Turkey signs business deal with Israel.

The educated ones don't. They understand how global geo-econmics works.

It's usually the uneducated, unemployed, frustrated warmongers who make the biggest scene. Ignore them

 

[nahtanbob]

India is desperate to get access to central Asian states, plus Afghanistan, it can use this route for smuggling, for any number of other issues, including terrorism. Right now, it uses Afghanistan and Iran, it will have direct access to Pakistani territory whilst transporting goods and building a greater trade surplus with Central Asian states.

What does Central Asia really have ?

 

[maithil]

What does Central Asia really have ?

Another figment of imagination of few users here. Central Asia is a very small market. Trade volume is always going to be small. Why would Indian establishment make any concession for getting a land route to this via an enemy territory? Whatever trade happens, can be done via alternate channels.

 

[Muji.Iqbal]

And why should we trade with India? India is oppressing Kashmir.

 

[Sainthood 2.0]

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[ghazi52]

SBP confirms receiving $700m tranche from IMF​

Dawn.com
January 17, 2024


The International Monetary Fund (IMF) has released the much awaited $700 million tranche, shoring up the State Bank of Pakistan’s (SBP) foreign reserves.

The SBP confirmed the development in a statement, adding that the tranche equivalent to $705.6 million was released on January 16 (Tuesday) “following the successful completion of the first review by the Executive Board of IMF under Stand By Arrangement (SBA)”

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“The tranche release is in line with market expectations,” said Yousuf M. Farooq, director of research at Chase Securities. “Pakistan will have to continue with a tight fiscal policy to ensure economic stability and will have to enter a new EFF IMF program as soon as this SBA ends to ensure roll over of its external debt.

“The economic situation has improved significantly with Pakistan posting a current account surplus in December and a relatively stable currency. This will also ensure disinflation in coming months.”

Ali Farid Khwaja, Chairman, KTrade Securities Limited, said “the improvement of Pakistan’s relationship with the IMF and their satisfaction with Pakistan’s reforms is a great achievement, especially given where we were just six months ago.

“More than just the monetary flows, it’s a signal of confidence which makes Pakistan investable for other investors. This is the reason why foreign investors are investing in Pakistani stocks as well.”

“IMF’s significance is more than just the money. The reforms are not easy and hence credit goes to the interim government in implementing hard decisions. We need consistency on reforms to reestablish investor confidence which is necessary for the success of privatization plans.”

Khurram Schehzad, the chief executive of financial consultancy firm Alpha Beta Core, also said that the development was “expected”, adding that the next review is likely to be “smooth” as well.

“The challenge will be the new larger IMF Program under the new govt with reforms on the agenda,” he added.

UAE confirms rollover​

In another statement on social media platform X, the SBP said the United Arab Emirates had confirmed the rollover of two deposits of $1.0 billion each.

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The deposits, which were scheduled to mature in January, have been placed with the SBP for another year, it added.

Earlier, the prime minister had written a letter to the UAE government requesting the rollover of a $2bn loan. According to experts, it would improve SBP’s foreign reserves position which will boost investor confidence.

SBP confirms receiving $700m tranche from IMF

Analyst calls tranche "a signal of confidence with makes Pakistan investable"; UAE confirms rollover of two deposits of $1.0bn each.

www.dawn.com

 

[peagle]

What does Central Asia really have ?

You tell me, it's India that's obsessed with getting a route to Central Asia. If they don't have anything then the desire for this route seems somewhat suspect.


Shouldn't you change your country of origin flag to India?

 

[spammmmer]

You tell me, it's India that's obsessed with getting a route to Central Asia. If they don't have anything then the desire for this route seems somewhat suspect.


Shouldn't you change your country of origin flag to India?

we already have our chabbar port in iran for central asia.
pakistan really does not have anything to trade for.

 

[peagle]

we already have our chabbar port in iran for central asia.
pakistan really does not have anything to trade for.

I'm sorry but that makes no sense.
I know there is Chabahar port is available, which was build with Chinese equipment, then why is India obsessing about land route to Afghanistan and Central Asia, it's pointless to deny it.

I think you did not understand my point, I am against enlarged trade with India. but you're asking me to justify trade with India, it makes no sense.
You are asking me to justify a position, which I already oppose.

 

[hussain0216]

These are enemy populations, what's the point of trade with your enemy

Just separate

If partition had been done properly 70 years ago we wouldn't have had to deal with Hindus whatsoever

Instead we have a Muslim Kashmir stuck in a India with a Hindu dushman majority and 200 million Indian Muslims who need freedom and independence

 

[spammmmer]

I'm sorry but that makes no sense.
I know there is Chabahar port is available, which was build with Chinese equipment, then why is India obsessing about land route to Afghanistan and Central Asia, it's pointless to deny it.

I think you did not understand my point, I am against enlarged trade with India. but you're asking me to justify trade with India, it makes no sense.
You are asking me to justify a position, which I already oppose.

i am stating there is nothing of value which pakistan can export to india for which we will start trade with your country.
As someone stated we need a central asia route for which we need to go through pakistan which i contradicted by saying we have chabbar port ready for bypassing pakistan and trade with central asia, we have no need of pakistan land trade route.

 

[Zarvan]

No compromise on Kashmir. India is not needed.

 

[RescueRanger]

I locked this thread for a reason.

 

[ghazi52]

The International Monetary Fund (IMF) faces tough choices on how to deal with Pakistan after the February 8 general election and how to assess the country’s debt situation, former central bank governor Reza Baqir said.

The government secured a $3 billion loan programme with IMF in July that helped pull the cash-strapped nation back from the brink of a sovereign debt default.

However, the programme was a nine-month standby arrangement, set to expire this spring.

“The IMF will have to decide whether to pull the plug on Pakistan or not, and by that I mean it will have to decide about its assessment of debt sustainability,” said Baqir, head of sovereign advisory services at Alvarez & Marsal.

Baqir served as governor of the State Bank of Pakistan (SBP) from 2019 till 2022.

The IMF labelled Pakistan’s debt as sustainable, but also emphasised the significant and pronounced risks, said Baqir, who negotiated the country’s 2019 IMF programme and also worked at the Washington-based lender for almost two decades.

“That’s almost like having it both ways,” he said, adding investors would be watching whether the Fund would continue to label the debt as sustainable or whether it would offer its support on a debt restructuring as part of a new programme should authorities choose to go down that route.

Pakistan’s public external debt stood at just under $100 billion by the end of September last year, according to central bank data, with China and its lenders being the single largest creditor to the country.

Pakistan’s shorter-dated bonds are trading at 96 cents, fairly close to par, though longer-dated ones maturing after 2030 stand at just over 60 cents, well below the 70-cent threshold below which debt is seen as distressed.

Today, the bonds suffered sharp falls after Pakistan struck terrorist hideouts inside Iran amid rising tensions with its neighbour.

Pakistan would also be a potential candidate for a “debt-for-nature” style debt swap said Baqir, pointing to deadly 2022 floods that affected more than 33 million people.

Debt-for-nature swaps — where countries introduce eco-policies in return for having their debt cut — are growing in popularity after successful recent deals in places such as Belize and Ecuador’s Galapagos Islands.

IMF debt dilemma looms after Feb 8 election: ex-SBP governor

Reza Baqir says IMF will have to decide "whether to pull the plug on Pakistan or not".

www.dawn.com