Economic Progress - Page 272 - SkyscraperCity
 

forums map | news magazine | posting guidelines

Go Back   SkyscraperCity > Asian Forums > Mehfil-e-Pakistan > Economic Development > Business and Economy


Reply
 
Thread Tools
Old September 13th, 2019, 03:45 AM   #5421
malpensa
Registered User
 
malpensa's Avatar
 
Join Date: Feb 2005
Location: USA
Posts: 5,683
Likes (Received): 13338

for PTI fans every thing is always fine and dandy


they could be paying 1 lak electricty and gas bills per month and they would say look at the bright side at least were not paying 2 laks a month...
malpensa no está en línea   Reply With Quote
Sponsored Links
Advertisement
 
Old September 13th, 2019, 04:24 AM   #5422
UzEE Inc
@UzEE
 
UzEE Inc's Avatar
 
Join Date: May 2014
Location: Lahore
Posts: 712
Likes (Received): 1100

Never, ever said I was a PTI fan...
__________________
Twitter: @UzEE
UzEE Inc no está en línea   Reply With Quote
Old September 13th, 2019, 03:36 PM   #5423
Pak_Forever
Moderator
 
Pak_Forever's Avatar
 
Join Date: Mar 2016
Location: Karachi
Posts: 15,832
Likes (Received): 32110

- Refrain from any political discussion.

- There is no need to write political one liners while posting any article related to economy of Pakistan. Just post the article with the reliable source and let others to discuss it if it's worth for a discussion.
Pak_Forever no está en línea   Reply With Quote
Old September 13th, 2019, 05:49 PM   #5424
sandiego
Registered User
 
Join Date: Nov 2011
Posts: 2,351
Likes (Received): 3534



i am just going by what i know and what i researched.

if the fiscal year starts july 2019 then the stock market on july 1st was at 33996 unlike the 30-28 k points mentioned here. this just throws the whole screenshot in doubt. psx.com
__________________

Mirza.Kashaf liked this post
sandiego no está en línea   Reply With Quote
Old September 13th, 2019, 08:14 PM   #5425
UzEE Inc
@UzEE
 
UzEE Inc's Avatar
 
Join Date: May 2014
Location: Lahore
Posts: 712
Likes (Received): 1100

Quote:
Originally Posted by sandiego View Post


i am just going by what i know and what i researched.

if the fiscal year starts july 2019 then the stock market on july 1st was at 33996 unlike the 30-28 k points mentioned here. this just throws the whole screenshot in doubt. psx.com
Fiscal Year that started on July 1, 2019 would be called FY 2020 I believe since the ending date is counted when you're shortening it.

However, for this particular data point is indeed contentious since it doesn't mention what the value represents. Is it the Market Index at the start of the year?, at the end? the mean? the median?

Without specifying this, the data is absolutely useless.
__________________
Twitter: @UzEE
UzEE Inc no está en línea   Reply With Quote
Old September 13th, 2019, 08:34 PM   #5426
sandiego
Registered User
 
Join Date: Nov 2011
Posts: 2,351
Likes (Received): 3534

Quote:
Fiscal Year that started on July 1, 2019 would be called FY 2020 I believe since the ending date is counted when you're shortening it.

However, for this particular data point is indeed contentious since it doesn't mention what the value represents. Is it the Market Index at the start of the year?, at the end? the mean? the median?

Without specifying this, the data is absolutely useless.
__________________

i couldn't scroll to friday june 28 on the yearly graph so i selected the 1st. either way my point was that whoever created this document definitely exaggerated the numbers.
__________________

UzEE Inc liked this post
sandiego no está en línea   Reply With Quote
Old September 13th, 2019, 09:57 PM   #5427
rayaan
Registered User
 
Join Date: Jul 2009
Location: Islamabad
Posts: 2,189
Likes (Received): 2639

Debt Diplomacy

Riding a global trend, a symptom of Western anxiety is the new narrative of CPEC and the Belt and Road Initiative (BRI) being bloated, unplanned and predatory initiatives. The spectre of swamping Chinese indebtedness is cited by Western powers as a critical neo-imperial gambit that cannibalises developing, weaker economies, while ignoring their own debt profiles and structural lending to countries like Pakistan. This public conversation naturally stokes real fears in Pakistan, where the opacity of Chinese contracts with government are cited as troubling for good governance and debt-ratio metrics.

The fact is that 90 percent of developing country debt, including Pakistanís, is owed to Western countries or institutions. Servicing this debt consumes about 30 percent of hard currency outflows from these developing countries, notwithstanding examples of Sri Lanka or Malaysia. At the Second BRI Summit in April 2019, China has sought to realign its investments in large-scale projects by addressing concerns of exclusivity, sustainability and standards. The launch of the new Debt Sustainability Framework under the Chinese Ministry of Finance, coupled with the Multilateral Cooperation Center for Development Financing are meant to address concerns of debt sustainability, and build multilateral cooperation mechanisms to help share financing for infrastructure projects, largely restricted to policy banks such as the China Development Bank, EXIM Bank of China and other state-owned banks.

As Pakistan enters the second phase of CPEC, it is important to understand the measures and projections surrounding the arguments over debt risk to inform policy behaviour. One of the main concerns is that CPEC is adding on to Pakistanís already ballooning public debt. This is not entirely true.

According to the official Chinese statement, the early harvest projects are worth18.9 billion dollars in investments which is made up of six billion dollars in government loans with a two percent interest rate and private investments in the form of equity worth three billion dollars, and 9.8 billion dollars in commercial loans with a five percent interest rate. So far, the government of Pakistan only needs to repay six billion dollars over the span of 20-25 years. It is important to note that, although commercial loans figure in the countryís total external debt and liabilities, it is in fact not guaranteed by the government. This is proven by the State Bankís official figures that do not show any guaranteed private-sector external debt. CPEC makes up for six percent of Pakistanís total external debt worth 105.84 billion dollars whereas other multilateral loans run about four to five times more, dwarfing CPEC loans in comparison.

Aside from the debt question, some worry about the risk of asset seizure in case Pakistan fails to repay its Chinese loans. Sri Lanka is often cited as a cautionary tale in this regard. However, the circumstances that led Sri Lanka to lease its port to China point to a much more pervasive balance of payment crisis that goes well and beyond its Chinese loans. The Rhodium Group, in a recent study, looked at 40 cases of Chinese debt renegotiations. Their findings reveal that asset seizure is indeed a very rare occurrence. In fact, deferment, change of loan terms and deadlines, refinancing or even write-offs or debt forgiveness are more common outcomes. The refinancing and renegotiation given to Angola, Ecuador, Ethiopia, Mongolia and Ukraine support this claim. Altogether, China has renegotiated around 50 billion dollars worth of debt.

With its ballooning external debt, questions surrounding the countryís capability to repay its loans without risking its assets are not unfounded. The real risk lies in Pakistanís ability to stabilise its balance of payments. Pakistan must, therefore, focus on building cooperation frameworks and reducing the opacity of CPEC finances.

https://www.dawn.com/news/1502790
rayaan no está en línea   Reply With Quote
Old September 13th, 2019, 10:31 PM   #5428
UzEE Inc
@UzEE
 
UzEE Inc's Avatar
 
Join Date: May 2014
Location: Lahore
Posts: 712
Likes (Received): 1100

Quote:
Originally Posted by sandiego View Post
i couldn't scroll to friday june 28 on the yearly graph so i selected the 1st. either way my point was that whoever created this document definitely exaggerated the numbers.
I got curious about the numbers so I pulled the publicly accessible data from PSX' data portal and did some very basic analysis.

(Disclaimer: I'm no economist or financial analyst so I have no idea how it actually should be done.)

Interestingly, the quoted number in 2018 column never appears in the past 5 years of data, though it is still close to actual numbers. Also, as you pointed out, the lowest the market went in FY 2019 was 33,166.62 which is significantly higher than the 30,000 to 28,000 figure claimed by that picture above. If this easily accessible data is inaccurate in that claim, this really does cast doubt on the rest of the figures in that picture.



It looks like the market peaked in FY 2017, and started going down after that. So the download trend had already started during previous government's tenure and continued on during the first year of the current government. For example, by the end of FY 2018, the market had come down nearly 11,000 points from it's peak in 2017 so it seems like the economic crisis was already in full swing.

Here's the data in an excel sheet if someone is interested enough to look into it.
__________________
Twitter: @UzEE
UzEE Inc no está en línea   Reply With Quote
Old September 14th, 2019, 08:36 AM   #5429
malpensa
Registered User
 
malpensa's Avatar
 
Join Date: Feb 2005
Location: USA
Posts: 5,683
Likes (Received): 13338

ISLAMABAD: The government has missed the deadlines set to put the delayed China-Pakistan Economic Corridor (CPEC) projects back on track despite the instructions given by Prime Minister Imran Khan but China has once again expressed the resolve to remain committed to the multibillion-dollar strategic initiative.

Pakistan and China on Friday jointly reviewed progress on all the ongoing projects in the 58th Progress Review Meeting, which was held after a gap of 10 months.


https://tribune.com.pk/story/2055994...Ec9JA3Ui0GxWmk
__________________

Mirza.Kashaf, amxy2211, ms_saleem liked this post
malpensa no está en línea   Reply With Quote
Old September 16th, 2019, 08:35 AM   #5430
malpensa
Registered User
 
malpensa's Avatar
 
Join Date: Feb 2005
Location: USA
Posts: 5,683
Likes (Received): 13338

KARACHI: The economy of Pakistan is sick again and the International Monetary Fund (IMF) has once again prescribed the treatment based on the philosophy where “like cures like”, which is otherwise known as homeopathy.

The country’s chronic mismanagement of public finances and the borrowing binge is currently being treated with more borrowing from the IMF and then some more from other multilateral donors such as the Asian Development Bank (ADB) and others.

While Pakistan has kicked the can a little farther for a while by clinching the IMF deal, the massive interest rate hikes and putting the currency on a free float mode under the IMF programme will have serious social implications.

https://tribune.com.pk/story/2057189...pact-pakistan/
malpensa no está en línea   Reply With Quote
Old September 18th, 2019, 10:50 PM   #5431
ThisIsPakistan
Registered User
 
ThisIsPakistan's Avatar
 
Join Date: Jul 2018
Location: Rawalpindi
Posts: 340
Likes (Received): 570

Why did Imran Khan bring the dollar from 60 to 100?
__________________

malpensa liked this post
ThisIsPakistan no está en línea   Reply With Quote
Old September 19th, 2019, 03:01 AM   #5432
Metropole
Registered User
 
Metropole's Avatar
 
Join Date: Jun 2005
Posts: 12,081
Likes (Received): 22110

Quote:
Originally Posted by ThisIsPakistan View Post
Why did Imran Khan bring the dollar from 60 to 100?
Zardari Nawaz brought down the rupee from 60/$ to 120/$ between 2008 and 2018. Imran Khan brought it from 120/$ to 160/$.

In 1979 when I moved to UK 1 dollar was 9.90 rupees.

The reason the rupee keeps falling is because Pakistan's exports are a lot lower than its imports. Because Pakistan doesn't produce anything it has to import everything. Pakistan doesn't earn dollars by exporting so the rupee keeps falling.

Plus, no one pays taxes in Pakistan, so the government has to keep going to IMF and Arabs with a begging bowl. They demand that Pakistan drop the value of the rupee.

Pakistan doesn't produce anything to export because Bhutto nationalized industry in Pakistan in the 1970s and all the businessmen ran away from the country and never came back. Today if anyone wants to start a business in Pakistan they have to give away most of their profits in taxes and bribes to every Tom, Dick and Harry while it's hard and expensive to get electricity, gas, water connections etc. No one wants to invest in Pakistan.

If things don't start improving then the rupee will keep falling.
__________________
Metropole no está en línea   Reply With Quote
Old September 19th, 2019, 03:16 AM   #5433
malpensa
Registered User
 
malpensa's Avatar
 
Join Date: Feb 2005
Location: USA
Posts: 5,683
Likes (Received): 13338

evryone pays taxes in Pakistan..GST is written on every product except the things the comman man buys in bulk like in villages raw milk roti things that are not packaged

17 percent is charged in restaurants

huge taxes are charged on vehicles

huge taxes are charge on hotels, mall products all factories pay taxes on imported materials all airports charge taxes 3000 etc per person....its just that the gov. people refuse to rerinvest the money but they prefer to fill their retirement accounts
__________________

Metropole, ms_saleem, rb99 liked this post
malpensa no está en línea   Reply With Quote
Old September 19th, 2019, 06:30 AM   #5434
Metropole
Registered User
 
Metropole's Avatar
 
Join Date: Jun 2005
Posts: 12,081
Likes (Received): 22110

Statistic: Only 0.57% of Pakistanis, or 768,000 people out of a population of 200 million pay income tax.

Statistic: Pakistanís tax collection is under 10% of GDP. By comparison, the tax collection rate in Canada is 32%. Because a big chunk of Pakistanís economy is unregulated, tax collection may be only 6-7% of actual GDP.

There are a lot of indirect taxes, like GST, that fall on the heads of poor and rich alike. Most countries try to collect direct taxes, like income tax, so that rich people pay more. In Pakistan most of those who pay income tax are probably middle class workers, not the rich.

Large multinational companies pay taxes and employees pay taxes. Theyíre only a small number. The rest of the country lives off the work of these few.

Because the government runs a large deficit they have to go around begging and borrowing every year. The IMF recently forced Imran Khan to devalue the rupee.

Until the day Pakistanís tax revenues and exports increase the rupee will keep falling.
__________________
Metropole no está en línea   Reply With Quote
Old September 19th, 2019, 02:20 PM   #5435
UzEE Inc
@UzEE
 
UzEE Inc's Avatar
 
Join Date: May 2014
Location: Lahore
Posts: 712
Likes (Received): 1100

Quote:
Originally Posted by malpensa View Post
evryone pays taxes in Pakistan..GST is written on every product except the things the comman man buys in bulk like in villages raw milk roti things that are not packaged

17 percent is charged in restaurants

huge taxes are charged on vehicles

huge taxes are charge on hotels, mall products all factories pay taxes on imported materials all airports charge taxes 3000 etc per person....its just that the gov. people refuse to rerinvest the money but they prefer to fill their retirement accounts
It's cute that you think a lot of Sales Tax ends up in the government accounts. A vast chunk of it isn't even documented. Most shops and stores that don't have a proper POS system and do cash transactions don't actually declare their actual sales and pay a much lower sales tax than they actually owe.

This is why several retailers will moan if you want to pay by card. Because then the transaction would actually be documented. They try to disincentivize that by charging you extra if you want to do a cashless transaction.

This is one of the biggest reasons most merchants and traders went on strike this year when they government said it'll force them to document all their transactions.
UzEE Inc no está en línea   Reply With Quote
Old September 20th, 2019, 12:28 AM   #5436
Arsalan
Registered User
 
Arsalan's Avatar
 
Join Date: Jun 2007
Posts: 1,441
Likes (Received): 4767

Current account deficit declines by 55pc in first 2 months of FY2020

Quote:
The current account deficit (CAD) shrank by a massive 55 per cent in the first two months of the current fiscal year as compared to the corresponding period last year, reported the State Bank of Pakistan (SBP) on Thursday.

The CAD — for the two month period — reduced by $1.56bn to $1.29 billion from $2.85bn during the same period last year.

This was in line with the downward trend witnessed throughout 2018-19 when the deficit stood lower by 31pc to $13.58bn, from $19.8bn in FY18 — recording a decrease of $6.3bn.

This must be a relief for the government which has been struggling to plug the deficit through borrowing from donor agencies, commercial banks and friendly countries.

The major cause of the shrink is the decline in the trade deficit.

According to the trade summary issued by the commerce ministry for the two months, exports jumped to $3.738bn as compared to $3.650bn during the same period last year — showing a increase of 2.41pc or $88 million.

Similarly, imports for the period under review declined to $7.553bn as compare to $9.768bn during the same period last year — showing a decline of 22.68pc or $2.215bn.

In total, the trade deficit for the two months of the current fiscal year stood at $3.815bn as compared to $6.118bn during the corresponding period last fiscal year.
__________________
Arsalan no está en línea   Reply With Quote
Old September 20th, 2019, 04:25 AM   #5437
ThisIsPakistan
Registered User
 
ThisIsPakistan's Avatar
 
Join Date: Jul 2018
Location: Rawalpindi
Posts: 340
Likes (Received): 570

Quote:
Originally Posted by Metropole View Post
Zardari Nawaz brought down the rupee from 60/$ to 120/$ between 2008 and 2018. Imran Khan brought it from 120/$ to 160/$.

In 1979 when I moved to UK 1 dollar was 9.90 rupees.

The reason the rupee keeps falling is because Pakistan's exports are a lot lower than its imports. Because Pakistan doesn't produce anything it has to import everything. Pakistan doesn't earn dollars by exporting so the rupee keeps falling.

Plus, no one pays taxes in Pakistan, so the government has to keep going to IMF and Arabs with a begging bowl. They demand that Pakistan drop the value of the rupee.

Pakistan doesn't produce anything to export because Bhutto nationalized industry in Pakistan in the 1970s and all the businessmen ran away from the country and never came back. Today if anyone wants to start a business in Pakistan they have to give away most of their profits in taxes and bribes to every Tom, Dick and Harry while it's hard and expensive to get electricity, gas, water connections etc. No one wants to invest in Pakistan.

If things don't start improving then the rupee will keep falling.

I know that's. I was just joking about how we have a massive devaluation every 5 years and it gets worse every 5 years. Yet for most people, this is the first time we've ever had devaluation.
__________________

Arsalan Rashid, Metropole liked this post
ThisIsPakistan no está en línea   Reply With Quote
Old September 20th, 2019, 04:30 AM   #5438
ThisIsPakistan
Registered User
 
ThisIsPakistan's Avatar
 
Join Date: Jul 2018
Location: Rawalpindi
Posts: 340
Likes (Received): 570

August export growth was really horrible. Less than 1%. July really started off with a boom and a 10%+ export growth. I hope September numbers are much better than August, with the torkham border becoming 24/7. It'll show us whether it's worth the risk to keep it open 24/7.
ThisIsPakistan no está en línea   Reply With Quote
Old September 20th, 2019, 01:52 PM   #5439
malpensa
Registered User
 
malpensa's Avatar
 
Join Date: Feb 2005
Location: USA
Posts: 5,683
Likes (Received): 13338

apparently CPEC is over...time to pull the curtain down on another project


https://www.thenews.com.pk/print/528615-cpec-shelved
malpensa no está en línea   Reply With Quote
Old September 20th, 2019, 04:15 PM   #5440
sandiego
Registered User
 
Join Date: Nov 2011
Posts: 2,351
Likes (Received): 3534

Quote:
It's cute that you think a lot of Sales Tax ends up in the government accounts. A vast chunk of it isn't even documented. Most shops and stores that don't have a proper POS system and do cash transactions don't actually declare their actual sales and pay a much lower sales tax than they actually owe.

This is why several retailers will moan if you want to pay by card. Because then the transaction would actually be documented. They try to disincentivize that by charging you extra if you want to do a cashless transaction.

This is one of the biggest reasons most merchants and traders went on strike this year when they government said it'll force them to document all their transactions.
wherever cash is involved it is under reported. happens here in the west with tips, wages, eg taxi drivers and under tha table employment. later involved in drug money but thats besides the point

This is why i am a big fan of plastic. digital currency to be exact. everything gets logged, easier audit, less chances of fidgeting numbers. unfortunately it is a cultural shift that pakistani are unwilling to embrace. Obviously it too has it own issues such has hacking etc that require certain security protocols to be installed...
sandiego no está en línea   Reply With Quote
Sponsored Links
Advertisement
 


Reply

Tags
economy, pakistan

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Part 2/The ancient art of gentrification in progress/North/West Melbourne/Part 2/ Grollo City Images, Architecture & Historic themes 7 January 15th, 2007 06:03 AM


All times are GMT +2. The time now is 04:08 PM. • styleid: 14


Powered by vBulletin® Version 3.8.11 Beta 4
Copyright ©2000 - 2019, vBulletin Solutions Inc.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Feedback Buttons provided by Advanced Post Thanks / Like (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us