The Express Tribune Explains Pakistan’s Foreign Debt
This is extremely good by the Express Tribune. Very well done.
Re: Foreign debt of Pakistan Explained
I remember 'Karz utaro mulk sawaro' scheme Nawaz sharif started back in 1998 or so. I guess he took all the money and then back again to do some more
Re: Foreign debt of Pakistan Explained
Well what it does show is how Musharraf and Co lied about how they saved the country. They forced 13 billion dollars in debt to be dealt with in 2017.
As for the mistake NS made in 1998. It was economically stupid and caused capital flight.
Re: Foreign debt of Pakistan Explained
Re: Foreign debt of Pakistan Explained
the beauty of statistics, anyone can use it in his/her favour as numbers can be manipulated to your likings.
"glass half-full or half-empty" ... both true!
Re: Foreign debt of Pakistan Explained
the beauty of statistics, anyone can use it in his/her favour as numbers can be manipulated to your likings.
"glass half-full or half-empty" ... both true!
I do not think that statistical figures can be manipulated to a person's liking. Only problem is that, many people have little understanding of statistics, and that means, if statistical figures are mentioned with dishonest explanation, than a confused person with no understand of statistics and little ability to think, can be manipulated (or could be made a fool).
Re: Foreign debt of Pakistan Explained
Well what it does show is how Musharraf and Co lied about how they saved the country. They forced 13 billion dollars in debt to be dealt with in 2017.
As for the mistake NS made in 1998. It was economically stupid and caused capital flight.
Brother, do you know anything about what you are saying, or just like to say whatever you hear from retarded liars of Raiwand house, without understanding? ... Don’t you think that if a person could not understand something then they should ask instead of making stupid and absurd statements?
I could not understand why you said that Musharraf and Co lied about saving the country, as the chart you gave confirm that. Anyhow, best part of your absurd statement in post was ‘forced 13 billion dollars in debt to be dealt with in 2017’.
I believe you are talking about debt servicing that got reschedule in 2001 … and since you do not know or understand what ‘debt rescheduling’ means and how it affected Pakistan, you made such absurd statement. It is not entirely your fault, as even though chart shown is correct, but some part of explanation given as text is misleading (some even outright wrong).
To start with, article says that Pakistan external debt is $47 billion when by 2013 it was around $62 billion. Actually, debt was around $40 billion in Nov 2007 (same or slightly less than what it was in 1999) ... increased to $45 billion in 2008 (mostly after PPP took over), and since then it is increasing in jumps.
Anyhow, since you are confused about debt rescheduling, let me try to explain that to you (as clearly as possible).
Though debt got rescheduled in Dec 2011, talk of debt rescheduling started much before 9/11. Secondly, Pakistan is not the only country that do debt rescheduling, rather many countries do that if they can. Pakistan managed to do debt rescheduling many times in past, and what Musharraf government did was nothing new for Pakistan.
Third and most important thing to know is that, debt rescheduling by itself did not reduced debt of Pakistan by a single penny … it only differed the repayment of principal and debt interest.
It is just like, you borrowed Rs 10000 and made agreement to pay back in 10 years, returning Rs 1000 plus whatever interest every year. Then you you got your debt rescheduled making arrangement that instead of paying straightaway, you will start paying after 10 years and meanwhile your payment and interest would keep accumulating. So, after 10 years you would still going to have Rs 10000 plus interest as total debt. In other words, Rs 10000 debt would not go away but Rs 10000 debt plus increasing debt due to interest would be part of your debt every year.
That means, debt rescheduling was increasing rescheduled debt of Pakistan. So when one finds that Pakistan debt was ~$ 40 billion in 2007, than that debt includes increased rescheduled debt for that year (~ $ 14 billion).
Anyhow, Pakistani prudent government of that time used deferment of repayment not to steal (what PPP thugs and PMLN crooks do) but to reduce expensive debt, hence overall debt got reduced without increasing overall payment. Further, in 2004 Pakistan made extra debt payment to reduced debt, and also paid all IMF debt, making Pakistan first time IMF debt-free in 2004.
So … Musharraf Government did not pushed the debt for later payment, rather reduced debt of Pakistan drastically. Rescheduling of debt was same as taking cheaper loan to pay expensive loan (loan that thug BB and Crook NS took between 1988 and 1999, to steal without caring about interest rates).
Here are dates and amount Pakistan rescheduled till now:
[TABLE]
Period
Debt rescheduled
(Millions of dollars)
1971-73
$ 233.766 Mn
Bhutto
1973-74
$ 107.166
Bhutto
1974-78
$ 650.0
Bhutto
1977-78
$ 226.303
Zia
1980-82
$ 232.0
Zia
1985-88
$ 11* (debt forgiven)
Zia
1998-99
$ 1987.63
Crook Nawaz
1999-00
$ 1241.70
Crook Nawaz
2000-01
$ 617.28
Mush
December 2001
$ 12500
Mush
Source: GOP, State Bank and The News Dec. 17, 2001.
Article also wrongly claims that Pakistan never defaulted on debt (for nation, it is same as going bankrupt). Fact is that, Pakistan defaulted twice, once in 1998 and second time it was in 1999 ... both time it was Crook Nawaz who made Pakistan bankrupt.
Further, during the time Musharraf was in power, Pakistan increased foreign exchange reserve from less then $400 million to over $16000 million ($16 billion) ... and due to good management, good economic planning, reduced corruption, and obviously pain for the country (rather being self-centered), increased export from $7.6 billion a year in 1999 (almost constant since pair of thugs took over in 1988) to over $18 billion a year in 2008, federal tax revenue from Rs 308 billion in 1999 to over Rs 1000 billion in 2008, GDP from ~$60 billion in 1999 to @ $200 billion in 2008, per capita income ~$400 in 1999 to $1000 in 2008, stabilised dollar exchange rate in open market to around Rs 60 per dollar (as it was in 1999), kept local currency debt very low, halved local interest rate in 2008 from 1999, gave average GDP growth rate of over 6 percent from 1999 to 2008, reduced Pakistan poverty level from ~40 percent in 1999 to 17 percent in 2008, and so on.
Re: Foreign debt of Pakistan Explained
u key khawahish 
kash chacha musharf Pakistan ka sadar oar altaf husain wazeer azam ho jay kash :cobra:
Re: Foreign debt of Pakistan Explained
Brother, do you know anything about what you are saying, or just like to say whatever you hear from retarded liars of Raiwand house, without understanding? ... Don’t you think that if a person could not understand something then they should ask instead of making stupid and absurd statements?
I could not understand why you said that Musharraf and Co lied about saving the country, as the chart you gave confirm that. Anyhow, best part of your absurd statement in post was ‘forced 13 billion dollars in debt to be dealt with in 2017’.
I believe you are talking about debt servicing that got reschedule in 2001 … and since you do not know or understand what ‘debt rescheduling’ means and how it affected Pakistan, you made such absurd statement. It is not entirely your fault, as even though chart shown is correct, but some part of explanation given as text is misleading (some even outright wrong).
To start with, article says that Pakistan external debt is $47 billion when by 2013 it was around $62 billion. Actually, debt was around $40 billion in Nov 2007 (same or slightly less than what it was in 1999) ... increased to $45 billion in 2008 (mostly after PPP took over), and since then it is increasing in jumps.
Anyhow, since you are confused about debt rescheduling, let me try to explain that to you (as clearly as possible).
Though debt got rescheduled in Dec 2011, talk of debt rescheduling started much before 9/11. Secondly, Pakistan is not the only country that do debt rescheduling, rather many countries do that if they can. Pakistan managed to do debt rescheduling many times in past, and what Musharraf government did was nothing new for Pakistan.
Third and most important thing to know is that, debt rescheduling by itself did not reduced debt of Pakistan by a single penny … it only differed the repayment of principal and debt interest.
It is just like, you borrowed Rs 10000 and made agreement to pay back in 10 years, returning Rs 1000 plus whatever interest every year. Then you you got your debt rescheduled making arrangement that instead of paying straightaway, you will start paying after 10 years and meanwhile your payment and interest would keep accumulating. So, after 10 years you would still going to have Rs 10000 plus interest as total debt. In other words, Rs 10000 debt would not go away but Rs 10000 debt plus increasing debt due to interest would be part of your debt every year.
That means, debt rescheduling was increasing rescheduled debt of Pakistan. So when one finds that Pakistan debt was ~$ 40 billion in 2007, than that debt includes increased rescheduled debt for that year (~ $ 14 billion).
Anyhow, Pakistani prudent government of that time used deferment of repayment not to steal (what PPP thugs and PMLN crooks do) but to reduce expensive debt, hence overall debt got reduced without increasing overall payment. Further, in 2004 Pakistan made extra debt payment to reduced debt, and also paid all IMF debt, making Pakistan first time IMF debt-free in 2004.
So … Musharraf Government did not pushed the debt for later payment, rather reduced debt of Pakistan drastically. Rescheduling of debt was same as taking cheaper loan to pay expensive loan (loan that thug BB and Crook NS took between 1988 and 1999, to steal without caring about interest rates).
Here are dates and amount Pakistan rescheduled till now:
[TABLE]
Period Debt rescheduled (Millions of dollars)
1971-73 $ 233.766 Mn Bhutto
1973-74 $ 107.166 Bhutto
1974-78 $ 650.0 Bhutto
1977-78 $ 226.303 Zia
1980-82 $ 232.0 Zia
1985-88 $ 11* (debt forgiven) Zia
1998-99 $ 1987.63 Crook Nawaz
1999-00 $ 1241.70 Crook Nawaz
2000-01 $ 617.28 Mush
December 2001 $ 12500 Mush
Source: GOP, State Bank and The News Dec. 17, 2001.
Article also wrongly claims that Pakistan never defaulted on debt (for nation, it is same as going bankrupt). Fact is that, Pakistan defaulted twice, once in 1998 and second time it was in 1999 ... both time it was Crook Nawaz who made Pakistan bankrupt.
Further, during the time Musharraf was in power, Pakistan increased foreign exchange reserve from less then $400 million to over $16000 million ($16 billion) ... and due to good management, good economic planning, reduced corruption, and obviously pain for the country (rather being self-centered), increased export from $7.6 billion a year in 1999 (almost constant since pair of thugs took over in 1988) to over $18 billion a year in 2008, federal tax revenue from Rs 308 billion in 1999 to over Rs 1000 billion in 2008, GDP from ~$60 billion in 1999 to @ $200 billion in 2008, per capita income ~$400 in 1999 to $1000 in 2008, stabilised dollar exchange rate in open market to around Rs 60 per dollar (as it was in 1999), kept local currency debt very low, halved local interest rate in 2008 from 1999, gave average GDP growth rate of over 6 percent from 1999 to 2008, reduced Pakistan poverty level from ~40 percent in 1999 to 17 percent in 2008, and so on.
yawn All bull****.
Re: Foreign debt of Pakistan Explained
Very nicely done story, some of the best visuals I have seen