PPP government's crazy borrowing is similar to current US debt ceiling crisis

Society Pakistan & World Affairs
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Difference between the two is that NO party in Pakistan even is raising this question of extensive government borrowing.
This government is more concerned about fighting with supreme court than to balance the country’s budget.

But then, what else is expected from an agricultural government whose ministers don’t even have to pay taxes.

http://www.bloomberg.com/news/2011-07-28/pakistan-s-exodus-of-officials-exposes-limbo-in-policy-making.html

The resignation of two central bank governors and one finance minister in Pakistan since the start of 2010 has exposed a breakdown in policymaking, threatening efforts to revive growth amid surging prices and terrorism.
Shahid Kardar, who stepped down as Pakistan’s central bank governor on July 12, was the second person to quit the post in more than a year.

Kardar blamed increased government borrowing for price gains and kept the central bank’s policy rate, one of the highest in the world, unchanged since January this year after raising it in September and November by half a percentage point each to slow inflation. He cited “difference of opinion on policy actions” for his resignation.

Government borrowing rose 58 percent to 716 billion rupees ($8.3 billion) in the last fiscal year from the previous 12 months, according to the central bank.
**Consumer prices in Pakistan climbed 13.1 percent in June, the most after Vietnam, among the 17 nations in the Asia Pacific tracked by Bloomberg.
**
While Gilani’s government has pledged to narrow the budget deficit to a seven-year low of 4 percent of gross domestic product in the year ending June 30, 2012, it hasn’t yet enacted a law that would limit borrowings from the central bank.
Pakistan’s economy probably expanded 2.4 percent in the year ended June 30, slower than an earlier target of 4.5 percent.

http://www.pakistantoday.com.pk/2011/03/monetary-expansion-on-rise-government-borrowing-rings-alarm/

Monetary expansion on rise – Government borrowing rings alarm
…this trend … would ultimately lead to crowding out of the private sector that would reflect adversely on the overall growth in the country. A higher monetary expansion coupled with recent oil price increase** is all set to push the country’s double-digit inflation further up with relevant indicators**, like Consumer Price Index (CPI), already haunting the country at 14.19 percent in January (2011).

http://www.dawn.com/2011/07/21/sbp-summary-govt-borrowing-exceeds-private-sector-credit.html

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

This is all true.
Actually we are unable to meet the issues.
Reason behind is uncertainty.
Lake of confidence among people and institutions.
We have a 64 years history
and
63 years of history are full of conspiracies.
Conspiracies against each other.
Now we are reaching to its results.
Worst time of our history,
Only one way left .
End of corruption with end of Conspiracies.
End of corruption is impossible without end of conspiracies.
And end of corruption is also impossible without a NRO for all.
Enemies of Pakistan have surrounded us.
I am looking a thread’s title
Should Pakistan adopt Sulah-a-Hudaybiyyah model for Kashmir issue ?
I think we need we need Sulah e Hudabiyyah among us first.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

I just came across an interesting chart. Compare present government’s borrowing spree with Musharraf government. The same government which everyone hates so much.

Debt has almost DOUBLED under this government.

Pasha, if PPP can’t handle the pressure it is under, and if you think we need to have Hudaibiya model for this government to actually work, then it is very obvious this government is INCOMPETENT.

The only thing this government is good at is making deals with other parties so that it could stay in power, regardless of what happens to the country through PPP’s incompetent medieval ministers.

Agriculture tax:
Government is willing to borrow more (and send Pakistan to abyss) rather than try to increase tax net, especially agricultural tax. This tax is important because Pakistan is an agricultural country and due to its absence a large majority of people are not required to pay taxes, including people like Gilani and Zardari.
But it is unexpected from this agricultural government to impose agriculture tax.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

And then we Pakistanis (including me) have the audacity to say that we don’t need US aid!

In 2011, current account deficit is expected to be around over $3 billion. In other words, Pakistan will need to either borrow more or attract enough foreign investment to service its debt that includes nearly $9 billion in IMF loans. Not a pretty picture specially if we consider that the oil prices have once again risen to $100-level as they did in 2008. As Pakistan is not likely to get big foreign investments,** its reliance on the IMF and other bodies like the World Bank is almost certain to increase in 2012…**

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

Not even your MQM?? Oh, they are part of the same govt!

The hypocrisy of your criticism is astounding!

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

Well said, but the question of extensive borrowings and excess collection of taxes coupled with evaporation of subsidies with no new public sector projects should be raised and PPP led government should be made accountable for this, instead of believing their excuses that they inherited this from previous government.

Nothing is being done for general public and PPP leadership is making records of corruption to built their new palaces at the cost of public heads. They are not less than Genghis Khan.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

This is why I hope PPP loses the next national election, and Zardari is replaced by real PPP leaders like Aitazaz Ahsan, Raza Rabbani, etc

However they should always be the Sindh govt, as it is dangerous for Pakistan to allow MQM free rein

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

Yes. NO party is raising the voice, including MQM. Everyone shares the blame for not condemning PPP jageerdar to stop this mania, including MQM.
But there are excuses available for not raising voice from many parties, including MQM.
Only party which can not give excuse for this mania is PPP.

Urdu speaking people, not just MQM members, have been killed indiscriminately by racist PPP Sindh government.
But you have guts to blame MQM for killing of its own constituency and members?!

Actually, your problem appears not the MQM but Urdu speaking people in general. This thread is about PAKISTAN, not about Pakistan politics.

If Pakistan is to develop then we need to keep racist wadera Bhutto-gardi away from the biggest city of Pakistan.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

Unfortunately, it is highly unlikely that PPP lose the next election, and Zardari will remain the PPP leader regardless of winning or losing.
Now get back to the topic.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

That is true.
But about the bold part, if this comment was about extensive borrowing then I had posted a chart earlier which shows that actually this government did NOT inherit borrowing problem from Musharraf government.
So this can not be used as excuse.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

How dare PPP remove Zardari? Do they have balls to do it?

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

No one have balls in Pakistani politics to remove /change their leaders. Be it AH’s MQM or NS/ SS PML(N). These supporters of so called democracy are very much dictators when question raises for party leadership.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

Nonsense, MQM kill Urdu speakers all the time.

Nobody has killed more Pakistani’s based on race than the MQM, and you know it. Pathan’s, Sindhi’s, Punjabi’s, Baloch have all been killed by MQM, purely because of their race.

Don’t try the game ‘If you hate MQM, you hate all Urdu speakers’.

No one is fooled by that line, although you seem to show hate for any native Sindhi, in their capital Karachi, or elsewhere.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

But they can argue that due to this or that problem created by previous government they had to borrow that much. PPP has been really pathetic in this tenure. It always play Sindh card, but didn’t do much for Sindh. They haven’t still repaired the roads in flood affected areas.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

100 % Agreed.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

This is not just the game, it is a fact.** There was NO mention of MQM in this thread.** It was all about PPP government’s borrowing. You agreed with all I said BUT then commented FOR NO REASON that PPP government should keep pushing MQM in Sindh province.
Thus you have put all blame of Karachi violence on MQM alone, and totally ignored the racist PPP Sindh ministers whose abuses against ALL Urdu speakers are on record.
So it’s not just the game, it is a fact. If you blame MQM alone all the time, if you don’t see anything wrong in what PPP Sindh is doing to Karachi’s peace, then your problem is more than just MQM. You have problem with MQM’s constituents, who are majority Urdu speaking people.

Now come back to the topic, and do not derail this thread. It is not about MQM. It is about PPP government and its borrowing mania.
If you keep ranting about irrelevant topics then I would have to report you to the mods.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

PPP government is only interested in staying in power no matter WHAT happens to the economy. Its record is worse than the records of ANY government in the past, including those of Nawaz and Benazir.
Here is one example of how casual this government takes the economy. They keep on changing finance team.

Musical chairs: ‘Constant reshuffling in finance ministry hurting economy’
(renowned economist Dr Ashfaque Hasan) Khan also emphasised on developing a stable economic team as according to him replacing four finance ministers, four Governors of the State Bank, five finance secretaries, four chairmen Federal Board of Revenue and four deputy chairmen planning commission in such a short span of time was unique in the world. “How can the economy be stable when the economic team is not stable?”

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

But mqm is part of PPP government isn’t it? How you criticize PPP government performance but no including mqm who is main cultprit in spending billions in Karachi? greater part of this also went into their pockets and expenses for your spiritual pir of landan, aka chooran wala. Ofcourse he can not earn enough money to buy big houses in landan just by selling chooran:)

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

I think you don’t know MQM-PPP (or even MQM - Other party) relationship. Its combination of 'Sheer o Shakkar - Milk & sugar ’ while looting and ‘oil and water’ at the time of accountability.

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Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis

How old are you? 15?
It would be a news for you, I am sure, that financial decisions of the country are NOT made by representatives of ALL coalition partners.
If that were true then agriculture tax would have been imposed long time ago, which has been MQM’s demand since long. If MQM was part of financial decisions then why did it threaten to leave government earlier when PPP medieval feudals were bound to impose General Sales Tax?

You should think before you speak.