Hi everyone ,
I am starting this thread to discuss positives and negatives of what is going on in Pakistan’s economic field.
As our president rightly said earlier this week that Pakistan was gang raped by the previous rulers. Nawaz and Bhutto clans have practically destroyed the very foundation of our economy.
To them progress meant borrowing money for their pandoo show off projects. Lahore orange line is one such disaster of monstrous proportions. Almost 3 billion dollars @commercial rate + some interest and subsidizing this project alone will eat up big amount of Punjab development budget.
Nandi our power is still not producing anything.
biggest scandal of Pakistan’s history is about to open regarding power plants policies and payments .
while most people see pandemic as a gloom and doom time for the economy I learned in my MBA classes how to see oppertunity in disaster. And I see a big one.
Pakistan as reported by Moody may not get effected as badly as the other countries . Pakistan in the back of expected good agriculture performance this year can sustain this crisis due to its limited exposure to export income. (unfortunately usually it’s not a good news but in this crisis low export earnings may be a slightly good news ).
Countries like Bangladesh who are the sewing machine of the West will face disastrous consequences due to their 30 billion exports but almost all of clothing.
Our real saviour are the low oil prices and willingness of G20 to restructure /write off debt.
Pakistan has already flooded market with liquidity, low interest rates and high fiscal deficit and IMF is not only looking the other way but Infact encouraging. We will have much easier time dealing with their conditions when things come Back to the normal.
IMF wants growth and restart of world economy and will encourage easy money, low interest and bigger deficits .
already Pakistan is seeing around 8 percent inflation which will decrease more next month. low oil prices will help keep the inflation low in foreseeable future.
Sooner or later this crisis will be over and workers can go back to foreign countries and remittances will be back to normal again.
This gives us a chance to put our house in order. We need to kill 18 th amandement which guarantees that the hard earned money earned and collected by the federal government is squandered by hungry Bhutto and siphoned off to foreign lands in the form of guaranteed payment. It needs to end now. Provinces have a zero incentive to be self sufficient or manage their revenue streams .
here is today’s news :
Price of Petrol in Pakistan after recent reduction:
Pakistan : .51c
UAE: .52 c
India: .92-1.03
Bangladesh: over a dollar
Sri Lanka : .85c
Pakistanis can really take advantage of this low oil price situation and build some reserves .
I am starting this thread to discuss positives and negatives of what is going on in Pakistan’s economic field.
As our president rightly said earlier this week that Pakistan was gang raped by the previous rulers. Nawaz and Bhutto clans have practically destroyed the very foundation of our economy.
To them progress meant borrowing money for their pandoo show off projects. Lahore orange line is one such disaster of monstrous proportions. Almost 3 billion dollars @commercial rate + some interest and subsidizing this project alone will eat up big amount of Punjab development budget.
Nandi our power is still not producing anything.
biggest scandal of Pakistan’s history is about to open regarding power plants policies and payments .
while most people see pandemic as a gloom and doom time for the economy I learned in my MBA classes how to see oppertunity in disaster. And I see a big one.
Pakistan as reported by Moody may not get effected as badly as the other countries . Pakistan in the back of expected good agriculture performance this year can sustain this crisis due to its limited exposure to export income. (unfortunately usually it’s not a good news but in this crisis low export earnings may be a slightly good news ).
Countries like Bangladesh who are the sewing machine of the West will face disastrous consequences due to their 30 billion exports but almost all of clothing.
Our real saviour are the low oil prices and willingness of G20 to restructure /write off debt.
Pakistan has already flooded market with liquidity, low interest rates and high fiscal deficit and IMF is not only looking the other way but Infact encouraging. We will have much easier time dealing with their conditions when things come Back to the normal.
IMF wants growth and restart of world economy and will encourage easy money, low interest and bigger deficits .
already Pakistan is seeing around 8 percent inflation which will decrease more next month. low oil prices will help keep the inflation low in foreseeable future.
Sooner or later this crisis will be over and workers can go back to foreign countries and remittances will be back to normal again.
This gives us a chance to put our house in order. We need to kill 18 th amandement which guarantees that the hard earned money earned and collected by the federal government is squandered by hungry Bhutto and siphoned off to foreign lands in the form of guaranteed payment. It needs to end now. Provinces have a zero incentive to be self sufficient or manage their revenue streams .
here is today’s news :
Price of Petrol in Pakistan after recent reduction:
Pakistan : .51c
UAE: .52 c
India: .92-1.03
Bangladesh: over a dollar
Sri Lanka : .85c
Pakistanis can really take advantage of this low oil price situation and build some reserves .