Pakistan Debt is Rising
DAWN News: Public debt balloons to Rs7.6tr
Tuesday, 02 Feb, 2010
However, fiscal restraint and a limit on borrowing from State Bank enabled the govt to reduce the public debt-to-GDP ratio to 58.1 per cent by end-June 2009, thus avoiding a sustained deterioration of this indicator. - File photo
ISLAMABAD: The government has violated for the third consecutive year its own Fiscal Responsibility and Debt Limitation Act 2005 that seeks to reduce public debt by 2.5 per cent every year as Pakistan’s public debt rose by 26.6 per cent to Rs7,605 billion as on June 30, 2009, according to policy statement submitted to the parliament on Monday.
This requirement of the Act was meant to be a vehicle in achieving the more important target of reducing the public debt-to-GDP ratio to less than 60 per cent within a 10-year span, says the Debt Policy Statement 2009-10 of the Ministry of Finance.
We have over 7 and a half trillion Rupees of internal debt. Our external debt has passed $50 billion. It is to grow up to $72 - $75 billion by the end of this year.
(1) What the heck is Pakistan doing to itself ?
(2) What the heck are people of Pakistan doing with this nation ?
(3) How is Pakistan going to pay off this internal, plus our external debt ?
(4) Are we ever going to move towards betterment ?
toamin last edited by
Going for default is a good option.
What good would it be to default on internal, external debt ?
How would it help ?
expakistani last edited by
Bringing money back from swiss and saudi arab, pay of debt.
Put hold on any IMF WB payment until they reduce interest rate.
Reduce Mil and defiance budget.
Encourage NRP to send money to Pakistan using NBP, MCB etc.
Improve export and reduce import.
increase tax on stuff made not in Pakistan.
Wednesday, 03 Feb, 2010
The Supreme Court had ordered SBP to submit details of loan write-offs after press reports that the central bank had quietly allowed commercial banks to write off loans in 2002 under an incentive scheme introduced by former president Pervez Musharraf and the then finance minister Shaukat Aziz. - File photo
ISLAMABAD: The State Bank informed the Supreme Court on Tuesday that commercial banks had written off loans of up to Rs256 billion of more than 669,000 people over a period of about 40 years.
Look at this .. AHO! (in Urdu, Punjabi)
Personally, I believe, this number being disclosed is much smaller than reality. Rs. 250 billion over 40 years is not a big amount for Pakistan, is it ?
An interesting thing to note is that this over-all debt was 58.4 of GDP of Pakistan, which means, Pakistan's GDP is well over Rs. 10 trillion.
If we drop the exchange rate from international economic game just for the sake of 'pondering', it shows us how Pakistan is a direct competitor of US in every way, even in economy of the world.
Pakistan has a local economy which surpasses Rs. 10 trillion, much like US's local economy is $13.x trillion.
This shows me, that if Pakistan, if Pakistani people correct themselves, look at reality, rather than live a life of illusion, Pakistan can beat USA in global economic dominance far! easily than we think.
ALL we need to do is to;
(1) become honest
(2) impart justice among our ranks
(3) encourage education, research and development, science and technology
..and the west is toast! as Mirza Ghalib sb. would say.
Does anyone have figures on;
(a) how much debt Pakistan owes ?
(b) to whom does Pakistan owe that money ?
aftab-arif-2 last edited by
What happens if we default?