Pakistan Economic Default Is Near

[TeslaCoil]

In 1998, after nuclear tests Pakistan was on the verge of default, Pakistan's economic team under the leadership of Nawaz Sharif prepared an economic plan. Multiple scenarios were studied. When presented to the Prime Minister it was decided to tackle this problem from multiple fronts. Not only is Pakistan able to get strong economic support from the Gulf States but also Overseas Pakistan. Nawaz Sharif was the blue-eyed person of establishment and Overseas Pakistanis.

In 2018, Pakistan once again faced the same situation when we had to pay three times the amount we had in reserves. The populist government of Imran Khan took the same approach by contacting Gulf, China and IMF. One of the Royal Price in the Kingdom said that he believed in Imran Khan and decided to convince the leadership. Al Nahyan family in Abu Dhabi also showed strong support. China, first time in its history opened a credit line for Pakistan for billions of dollars. In 2019, Pakistan was out from the risk of default and its credit rating improved significantly. The Roshan Accounts gave a boost to Pakistan (investment from Overseas Pakistan).

Unlike Nawaz Sharif, Imran Khan remained loyal to the army. He never changed the chief and didn't intervene in army matters. Not a single time did his cabinet challenge any decision of the Establishment. Pakistan faced many challenges, Gulf States got angry at one point - Pakistan didn't accept their demands. Declining to accept Israel under pressure, criticizing the French President on blasphemy, COVID-19, repayment to IMF, FATF grey list etc. Imran Khan overall did a wonderful job. Due to Covid-19, there were supply chain issues worldwide due to factory closures and shipping companies issues inflation increased in Pakistan same as in all other countries. Rupee depreciated for the same reason as major currencies were losing against the dollar. But at any point, Pakistan was not facing any shortage of food and fuel just 2 months ago. Pakistan didn't use national reserves to keep the rupee lower (artificially) and prices were adjusted according to the International market. Largely unpopular decision but to keep the macroeconomics in good shape it was mandatory.

• Now, we do not have money to buy fuel. Food insecurity is in RED (alarming situation), the stock market crashed (political uncertainty and Intl. market issues), significant withdrawal of money from Roshan accounts. Pakistan is on the verge of default unless we receive USD 12 billion (non-Chinese loan). China seems not interested in bailing out Pakistan, and someone made sure by attacking their Nationals to keep them away.
• Now since this new Govt. (it is irrelevant who brought this and how it came into power), has no economic plan. The worst policies are adopted, and fuel prices were not increased according to the International market to remain popular. Fuel was not purchased according to demand. National reserves were used to bring down the dollar value (a short-term and dangerous decision).
• The biggest delegation of Pakistan's history went to the Gulf States and was unable to get any grant or fuel on deferred payment. Both Saudi Arabia and UAE are still evaluating to offer anything to Pakistan. Assurance is required from the military to lead their wars.
• According to data, this year's floods will be the worst. The crops will be damaged and food insecurity will further increase. Pakistan needs major relief to face the floods. With the current economic situation, it is going to be a challenge.
• Imran Khan dharna in Islamabad will put a further dent in the economic situation and Pakistan will lose significantly. It will be a blessing for Shahbaz Sharif as the media and people's attention will remain on this and not on the inflation.
• Almost 18 multinationals are negotiating with local companies to leave Pakistan. A major pharma company is selling their stakes at a 50% lower price. Three other pharma companies are in negotiation with local companies. Energy companies have approached their partners to buy their stakes. Two banks are negotiating a merger in the UK currently for their Pakistan operations. Another FMCG company is selling their stakes to a local competitor. With hedge fund managers disposing of their investments in Pakistan, almost USD 25 - 30 billion will be out of Pakistan in the coming months.

I still do not understand why it was mandatory to remove Khan from Government and invite a severe economic crisis that will lead to a default on external payments. The last hope is IMF and Gulf States as always but this time we created the situation ourselves to bring our house down. To heal from this damage, Pakistan has to add billions of USD in debt (at a higher interest rate) and face many shortages and needs 6 months to revive the supply chain that was disrupted a few weeks ago.

If fresh elections will not be called, I can predict a severe economic crisis. People will be on the streets against the establishment, government etc. Just see the civil unrest in Sri Lanka. In Pakistan, it will be worst as the general public blames the establishment for this.​

 

[Citizen X]

Its a sad state of affairs but if things keep nose diving the way that they are, then month, month and a half max Pakistan will become Sri Lanka 2.0

But I guess we have to hit rock bottom before everyone realizes what has happened and those still on the fence or under the illusion of khata hai to lagata bhi hai will also have their eyes opened!

Acha khassa Pakistan had recovered and started to climb on the development ladder, but these bastards came in and took it back to 0 again.

 

[Citizen X]

I still do not understand why it was mandatory to remove Khan from Government and invite severe economic crisis that will lead to default on external payments.

To disarm Pakistan of its Nuclear assets. Make the country so unstable that the west can make a case that its nuclear weapons are no longer safe and intervention has to take place.

Remember what Donald Lu(n) said, all will be forgiven if the NCV is successful. But now the Americans have f#cked the handlers and the handled over. Bheek ( as promised before ) has been refused from every corner, the establishment and PDM thought dollars will start raining down on them once they carry out their plan.

Now since no bheek is coming from anywhere, the economy is tanking, Pkr nose diving, inflation rising. And to make matters worse people like rana mouchard want to induce violence the forthcoming peaceful protest

 

[wasiqjaved]

 

[shafali]

So in 1998, Nawaz Sharif prepared an economic plan for Pakistan? More like an economic plan for his family.

 

[wasiqjaved]

 

[Saboo]

In 1998, after nuclear tests Pakistan was on the verge of default, Pakistan economic team under the leadership of Nawaz Sharif prepared an economic plan. Multiple scenarios were studied. When presented to the Prime Minister it was decided to tackle this problem from multiple fronts. Not only Pakistan able to get strong economic support from Gulf States but also from Overseas Pakistan. Nawaz Sharif was the blue eyed person of establishment and Overseas Pakistanis.

In 2018, Pakistan once again facing the same situation when we have to pay three times of the amount we have in reserves. Populist Government of Imran Khan took the same approach by contacting Gulf, China and IMF. One of the Royal Price in Kingdom said that he believed in Imran Khan and decided to convince the leadership. Al Nahyyan family in Abu Dhabi also showed the strong support. China , first time in the history opened a credit line for Pakistan for billions of dollars.In 2019 , Pakistan was out from the risk of default and was credit rating improved significantly. The Roshan Accounts, gave the biggest boost to Pakistan (investment from Overseas Pakistan).

Unlike Nawaz Sharif , Imran Khan remained loyal to Army. He never changed the Army Chief and didn't intervene in army matters. Not a single time his cabinet challenged any decision of Establishment. Pakistan faced many challenges , Gulf States got angry at one point - Pakistan didn't accept their demands. Acceptance of Israel - Pakistan didn't accept , criticizing French President on blasphemy, COVID-19 , repayment to IMF , FATF etc. Imran Khan did a wonderful job. Due to supply chain issues and worldwide factory closures due to Covid-19 inflation increased in Pakistan same like in all other countries. Rupee depreciated for the same reason as major currencies were losing against dollar. But at any point Pakistan was not facing any shortage of food and fuel just 2 months ago. Pakistan didn't use national reserves to keep rupee lower (artificially) and prices were adjusted according to International market. Largely unpopular decision but to keep the macro-economics in good shape it was mandatry.

• Now , we do not have money to buy fuel. Food insecurity is in RED (alarming situation), stock market crashed (political uncertainty and Intl. market issues), significant withdrawal of money from Roshan accounts. Pakistan is at the verge of default unless we receive USD 12 billion (non-Chinese loan). China seems not interested in bailing out Pakistan , and someone made sure by attacking their Nationals to keep them away.
• Now since this new Govt. (it is irrelevant who brought this and how it came into power) , has no economic plan. The worst policies are adopted, fuel prices were not increased according to International market to remain popular. Fuel was not purchased according to demand. National reserves was used to bring down the dollar value (short term and dangerous decision).
• The biggest delegation of Pakistan's history went to Gulf States and unable to get any grant or fuel on deferred payment. Both Saudi Arabia and UAE are still evaluating to offer anything to Pakistan. An assurance is required from military to lead their wars.
• According to data, this year floods will be worst. The crops will be damaged and food insecurity will further increase. Pakistan needs major relief to face the floods. With current economic situation it is going to be a challenge.
• Imran Khan dharna in Islamabad will put a further dent on economic situation and Pakistan will lose significantly. It will be a blessing for Shahbaz Sharif as media and people attention will remain towards this and not towards the inflation.
• Almost 18 multinationals are negotiating with local companies to leave Pakistan. A major pharma company is selling their stakes at 50% lower price. Three other pharma companies are in negotiation with local companies. Energy companies have approached their partners to buy their stakes. Two banks are negotiating a merger in UK currently for their Pakistan's operations. Another FMCG company is selling their stakes to local competitor. With hedge fund managers disposing off their investments in Pakistan , almost USD 25 - 30 billion will be out of Pakistan in coming months.

I still do not understand why it was mandatory to remove Khan from Government and invite severe economic crisis that will lead to default on external payments. The last hope is IMF and Gulf States as always but this time we created the situation ourselves to bring our house down. To heal from this damage, Pakistan has to add billions of USD in debt (at higher interest rate) and face many shortages and need 6 months to revive the supply chain that was disrupted few weeks ago.

If fresh elections will not be called, I can predict a severe economic crisis. People will be on streets against establishment, government etc. Just see the cvil unrest in Sri-Lanka. In Pakistan, it will be worst as general public blames establishment for this.

Very well written indeed…..Thanks.

 

[thinking]

I said before. Calculations.Assumptions..Risks after regime changed went opposite directions.That's why things are in mess. All puppets watching USA for saving.USA just approved 39 $$ Billions for Ukraine. Its a huge amount.USA can bail out Pakistan easily to give her paper money $$ around 10 to 15 $$ billions.But they needs guarantee that IK will not come in Gov ever.And Shareef..Zardari and Co will remain in power next 5 years..Let's see kon guarantee deta ha USA ko??Army already divided on this regime change conspiracy happened via Bajwa..

 

[Citizen X]

I said before. Calculations.Assumptions..Risks after regime changed went opposite directions.That's why things are in mess. All puppets watching USA for saving.USA just approved 39 $$ Billions for Ukraine. Its a huge amount.USA can bail out Pakistan easily to give her paper money $$ around 10 to 15 $$ billions.But they needs guarantee that IK will not come in Gov ever.And Shareef..Zardari and Co will remain in power next 5 years..Let's see kon guarantee deta ha USA ko??Army already divided on this regime change conspiracy happened via Bajwa..

USA is not giving any bheek to Pakistan, regime change was the first tiny step of their bigger plan. Like I said they screwed over the establishment and PDM telling that they will flood them with bheek, but now all bheek is refused.

USA cannot have a block of 3 nuclear armed countries in the region. Russia, China and Pakistan. Eventually they want to disarm Pakistan.

The Bhikaris got played by the US and now disposed off as used toilet paper

 

[KPKInsafian]

To disarm Pakistan of its Nuclear assets. Make the country so unstable that the west can make a case that its nuclear weapons are no longer safe and intervention has to take place.

Remember what Donald Lu(n) said, all will be forgiven if the NCV is successful. But now the Americans have f#cked the handlers and the handled over. Bheek ( as promised before ) has been refused from every corner, the establishment and PDM thought dollars will start raining down on them once they carry out their plan.

Now since no bheek is coming from anywhere, the economy is tanking, Pkr nose diving, inflation rising. And to make matters worse people like rana mouchard want to induce violence the forthcoming peaceful protest

USA killed two bird with one stone, supported the NCV and on the same time exposed them as well to create a rift between army and common people as it was there for a long time.
There main plan was to create the rift and finally succeeded but FA pass chokidars didn’t understand it and fell for the trap.

 

[Citizen X]

USA killed two bird with one stone, supported the NCV and on the same time exposed them as well to create a rift between army and common people as it was there for a long time.
There main plan was to create the rift and finally succeeded but FA pass chokidars didn’t understand it and fell for the trap.

I don't think that really matters to them, nor does that add or take anything away from their plan. Nor could they or anyone else have predicted it. If according to plan Khan went away quietly no one would have said anything.

Their plan is simple get rid of the only hurdle in their way, Khan, then refuse the earlier promised bheek, country tanks due to economic collapse, perfect excuse to make a case for disarming Pakistan.

 

[Ali-7]

Many overseas are just waiting for IK call to support his dharna financially ?.

My aunt started a whatsapp group. She is selling her house to support his dharna.
Asking all relatives to give one month salary.

Mainy kaha aik tau khotay raho or paisay bhi do. Hamari 3 naslain Zebra ban nai ki koshish krti rahi yaha or IK nai aik din mein sab khota kr dia ???

 

[BeggersForSale]

It is just a matter of time when people will be so angry that they will start burning the houses of Shareefs and Zardaris...

 

[Islamabadi1]

In 1998, after nuclear tests Pakistan was on the verge of default, Pakistan's economic team under the leadership of Nawaz Sharif prepared an economic plan. Multiple scenarios were studied. When presented to the Prime Minister it was decided to tackle this problem from multiple fronts. Not only is Pakistan able to get strong economic support from the Gulf States but also Overseas Pakistan. Nawaz Sharif was the blue-eyed person of establishment and Overseas Pakistanis.

In 2018, Pakistan once again faced the same situation when we had to pay three times the amount we had in reserves. The populist government of Imran Khan took the same approach by contacting Gulf, China and IMF. One of the Royal Price in the Kingdom said that he believed in Imran Khan and decided to convince the leadership. Al Nahyan family in Abu Dhabi also showed strong support. China, first time in its history opened a credit line for Pakistan for billions of dollars. In 2019, Pakistan was out from the risk of default and its credit rating improved significantly. The Roshan Accounts gave a boost to Pakistan (investment from Overseas Pakistan).

Unlike Nawaz Sharif, Imran Khan remained loyal to the army. He never changed the chief and didn't intervene in army matters. Not a single time did his cabinet challenge any decision of the Establishment. Pakistan faced many challenges, Gulf States got angry at one point - Pakistan didn't accept their demands. Declining to accept Israel under pressure, criticizing the French President on blasphemy, COVID-19, repayment to IMF, FATF grey list etc. Imran Khan overall did a wonderful job. Due to Covid-19, there were supply chain issues worldwide due to factory closures and shipping companies issues inflation increased in Pakistan same as in all other countries. Rupee depreciated for the same reason as major currencies were losing against the dollar. But at any point, Pakistan was not facing any shortage of food and fuel just 2 months ago. Pakistan didn't use national reserves to keep the rupee lower (artificially) and prices were adjusted according to the International market. Largely unpopular decision but to keep the macroeconomics in good shape it was mandatory.

• Now, we do not have money to buy fuel. Food insecurity is in RED (alarming situation), the stock market crashed (political uncertainty and Intl. market issues), significant withdrawal of money from Roshan accounts. Pakistan is on the verge of default unless we receive USD 12 billion (non-Chinese loan). China seems not interested in bailing out Pakistan, and someone made sure by attacking their Nationals to keep them away.
• Now since this new Govt. (it is irrelevant who brought this and how it came into power), has no economic plan. The worst policies are adopted, and fuel prices were not increased according to the International market to remain popular. Fuel was not purchased according to demand. National reserves were used to bring down the dollar value (a short-term and dangerous decision).
• The biggest delegation of Pakistan's history went to the Gulf States and was unable to get any grant or fuel on deferred payment. Both Saudi Arabia and UAE are still evaluating to offer anything to Pakistan. Assurance is required from the military to lead their wars.
• According to data, this year's floods will be the worst. The crops will be damaged and food insecurity will further increase. Pakistan needs major relief to face the floods. With the current economic situation, it is going to be a challenge.
• Imran Khan dharna in Islamabad will put a further dent in the economic situation and Pakistan will lose significantly. It will be a blessing for Shahbaz Sharif as the media and people's attention will remain on this and not on the inflation.
• Almost 18 multinationals are negotiating with local companies to leave Pakistan. A major pharma company is selling their stakes at a 50% lower price. Three other pharma companies are in negotiation with local companies. Energy companies have approached their partners to buy their stakes. Two banks are negotiating a merger in the UK currently for their Pakistan operations. Another FMCG company is selling their stakes to a local competitor. With hedge fund managers disposing of their investments in Pakistan, almost USD 25 - 30 billion will be out of Pakistan in the coming months.

I still do not understand why it was mandatory to remove Khan from Government and invite a severe economic crisis that will lead to a default on external payments. The last hope is IMF and Gulf States as always but this time we created the situation ourselves to bring our house down. To heal from this damage, Pakistan has to add billions of USD in debt (at a higher interest rate) and face many shortages and needs 6 months to revive the supply chain that was disrupted a few weeks ago.

If fresh elections will not be called, I can predict a severe economic crisis. People will be on the streets against the establishment, government etc. Just see the civil unrest in Sri Lanka. In Pakistan, it will be worst as the general public blames the establishment for this.​

ABHey moron you claim Dollar appreciated against MAJOR currencies... FALSE

Japanese Yen is stable for the last 10 years again dollar
Chinese Yuan is stable against dollar
Swiss Franc infact APPRECIATED against dollar rin last 5 years.
Untill 2-3 months ago EURO was stable against Dollar
ALl gulf currencies (Rial, Dirham Dinar) are pegged and are same rate for over 10 yrs
which MAJOR currency has depreciated against dolllar? Are you talking about Zambian Kwacha? Papua New Guinea? Eventhey are stable against dollar becasue most countries of the world protect their currency

 

[Masud Rajaa]

shehbaz speed

 

[Ali-7]

ABHey moron you claim Dollar appreciated against MAJOR currencies... FALSE

Japanese Yen is stable for the last 10 years again dollar
Chinese Yuan is stable against dollar
Swiss Franc infact APPRECIATED against dollar rin last 5 years.
Untill 2-3 months ago EURO was stable against Dollar
ALl gulf currencies (Rial, Dirham Dinar) are pegged and are same rate for over 10 yrs
which MAJOR currency has depreciated against dolllar? Are you talking about Zambian Kwacha? Papua New Guinea? Eventhey are stable against dollar becasue most countries of the world protect their currency

 

[Ali-7]

Laanat hai aap ke knowledge or jo east asia mein phansa howa hai. China apni currency to already neechay rakay howey hai to get competitive edce on exports. Because they are trade surplus
Japan under pressure from China did the same. Issi cheez ko tau US ko takleef ho rahi hai. Open krein tau ye boht ziada appreciate ho jain gi.

Open market currencies Jin ko consider kia jata hai wo Euro, CAD, Pound hai Maasharti aloom ki paidawar

 

[Islamabadi1]

Laanat hai aap ke knowledge or jo east asia mein phansa howa hai. China apni currency to already neechay rakay howey hai to get competitive edce on exports. Because they are trade surplus
Japan under pressure from China did the same. Issi cheez ko tau US ko takleef ho rahi hai. Open krein tau ye boht ziada appreciate ho jain gi.

Open market currencies Jin ko consider kia jata hai wo Euro, CAD, Pound hai Maasharti aloom ki paidawar

Abhey moron....euro k muqabley bhi dollar appreciate nahi huwa.....swiss franc is one of the most reliable and stable currencies in the world....uska rate check karogey to aapki hawae urr jaengi....wada aya economics ka professor...u are dealing with a person who is a money changer for the last 10 years beta i knw the rates by heart

 

[miafridi]

Noon leak is known to ruin economy not to build it.

On the contrary PTI not only took bold/unpopular decisions but all economic indicators Like Revenue collection, exports, remittances, job creation, GDP etc went into positive as well.

امپورٹڈ_حکومت_نامنظور