Mohammad Taimoor Khan’s Post

Beggars Can't Be Choosers: Pakistan’s Plea for Debt Relief 😂 🤣 😄 😅 😁 😜 😝 In a scenario straight out of a "beggars can't be choosers" handbook, Pakistan's Finance Minister Mohammad Aurangzeb made a Sunday announcement that sounds more like a plea than a financial strategy. Pakistan desperately needs a three to five-year extension on $12 billion in debt from Saudi Arabia, China, and the UAE to appease the IMF for a new bailout package. Aurangzeb, back from his China trip, was quick to clarify: "We're not asking for more money, just a bit of breathing room!" That's $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE—loose change, right?😂 🤣 😄 😅 😁 😜 😝 The IMF, playing the role of the strict parent, wants solid assurances for the next 37 months under the $7 billion Extended Fund Facility (EFF). Imagine borrowing for a year and then needing an extension because, oops, we can't pay it back yet. So now, Pakistan is asking to stretch this debt over three to five years to avoid a financial cliff dive.😂 🤣 😄 😅 😁 😜 😝 Out of the $12 billion, a hefty $5 billion is already overdue as of July. Historically, these creditors have been like short-term relationship enthusiasts, offering brief extensions. And as a cherry on top, Pakistan is re-profiling $15.4 billion in debt from Chinese Independent Power Producers, with a consultant lined up to extend it by five to eight years. Because who needs financial stability when you can just keep asking for more time?😂 🤣 😄 😅 😁 😜 😝 #PakistanDebtCrisis #IMFBailout #DebtExtension #FinancialDesperation #ReprofilingDebt #EconomicStruggles #PakistanEconomy #DebtNegotiations #FinancialRelief #EconomicChallenges #PakistanFinance #BeggarsCantBeChoosers #DebtRestructuring #EconomicAid #PakistanInDebt

In my article published in today's Express Tribune, I argue that a "strategic default" on external debt is the only way to put Pakistan's faltering economy back on track. The present course of action which envisions taking on more and more debt to pay down interest on previous loans is not sustainable for very long. It is delusional for the government to think that it can continue to do this ad eturnum. There always comes a point when a house of cards crashes to the ground. #Pakistan #economy #foreigndebt #IMF

As the clock ticks away, Pakistan's economic fate remains precariously poised, with the delayed IMF loan program casting a long shadow over the country's financial future. With a staggering debt burden of over $130 billion, Pakistan's ability to meet its repayment obligations hangs in the balance, threatening to plunge the nation into a deepening economic crisis. The IMF's reluctance to approve the loan program has sparked widespread concern, with experts warning of catastrophic consequences for the economy if the deal falls through. As the government scrambles to secure the funding, Pakistan's people can only watch with bated breath, hoping against hope that a solution will be found before it's too late. Read full news at https://lnkd.in/dqYJnbHj #PakistanEconomy #IMFLoan #DebtCrisis #EconomicUncertainty #FinancialFears #GovernmentScrambles #FundingFrenzy #EconomicDownturn #CatastrophicConsequences #DebtBurden #RepaymentObligations #EconomicCrisis #IMFReluctance #LoanProgram #FinancialFuture #EconomicFate #PakistanPeople #GovernmentEfforts #EconomicSolutions #FinancialStability #EconomicGrowth #PakistanProgress

Pakistan's Debt Dilemma: A Self-Inflicted Wound😡 😡😡 😡😡 😡😡 😡 Pakistan's ruling class has once again secured a lifeline in the form of a one-year debt rollover from China, Saudi Arabia, and the UAE. This desperate measure, a testament to the country's chronic financial mismanagement, buys the government more time to secure a new $7 billion loan from the IMF.😡 😡😡 😡😡 😡😡 😡 With a staggering 52% of the national budget consumed by debt servicing, Pakistan is trapped in a vicious cycle of borrowing to repay old debts. This reckless financial behavior by the elite has stifled economic growth, starved essential services, and plunged the nation deeper into a debt trap.😡 😡😡 😡😡 😡😡 😡 While the government boasts of a stable currency and a recent credit rating upgrade, these are mere cosmetic changes. The underlying economic fundamentals remain weak. The real issue is not the availability of short-term loans but the systemic failure of the ruling elite to implement structural reforms, boost revenue generation, and curb wasteful spending. Until this changes, Pakistan will continue to be a beggar in the international financial arena.😡 😡😡 😡😡 😡😡 😡 #PakistanDebtCrisis #IMFLoan #EconomicCrisis #PakistanEconomy #DebtTrap #RulingElite #BadGovernance #FinancialCrisis #Corruption #PublicSpending #TaxRevenues #Development #Investment #Sustainability

The IMF has described Pakistan's external debt repayment capacity as fragile, estimating the country’s external financing needs to reach $62.6 billion over three years under the Extended Fund Facility (EFF) program. Over a five-year period (2024-29), these needs could rise to $110.5 billion. The IMF projects $18.813 billion in financing needs for the current fiscal year, escalating to $23.714 billion by 2026-27. High risks from public debt, low reserves, and sociopolitical factors could undermine repayment capacity. However, a significant reduction in gross financing requirements for FY25, down to $18.8 billion, offers a more optimistic outlook. #PakistanEconomy #IMF #DebtRepayment #EconomicStability #Finance

Pakistan is facing the challenge of repaying $62.6 billion in external debt over the next three years, with $18.8 billion due in the current fiscal year. This is likely to add to the concerns of Pakistani citizens, whose household economies have already been severely affected by soaring electricity bills, fuel prices, and high inflation. The IMF has characterized Pakistan's external debt repayment capacity as fragile, projecting that the country will need $62.6 billion in external financing over three years under the Extended Fund Facility (EFF) program. Over a longer five-year period (2024-29), this requirement could rise to $110.5 billion. For the current fiscal year, the IMF estimates financing needs at $18.8 billion, with an increase to $23.7 billion by 2026-27. Public debt risks, low foreign reserves, and political instability could further strain Pakistan’s repayment ability. However, a reduction in gross financing requirements to $18.8 billion in FY25 offers a somewhat more hopeful outlook. #pakistan #pakistaneconomy #pakistannews #pakistangdp

Pakistani external debt has reached its third quarter of 2024. Its value has jumped as high as $133.5 billion, upsurging from previous years by an amount that reflected significant financial challenges for the nation. With this uprise, Pakistan's total outstanding debt has reached record peaks. The rise of external debt is exerting pressure on Pakistan's economy, which calls for necessary debt management and economic reform. As the country witnesses inflation and other financial stumbling blocks, the government emphasizes stabilizing the situation through a reduction in dependency upon foreign loans. The increasing amount of external debt in Pakistan also indicates the need for strengthening the local economy and thereby increasing foreign direct investment. More stable and sustainable financial sources will be secured to manage this swelling debt burden. . . . #PakistanEconomy #ExternalDebt #DebtCrisis #EconomicChallenges #DebtManagement #FinancialPressure #DebtIncrease #PakistaniFinance #EconomicReforms #DebtBurden #InternationalLoans #EconomicStability #ForeignInvestment #PakistanGrowth #DebtMonitoring #Tribunetrends

*Pakistan's 2024 debt fiasco* In FY 2024 (i.e. July 2023 to June 2024), the government of Pakistan received Rs. 73 trillion from international banks. This debt was extended to Pakistan by these banks when the State Bank of Pakistan (SBP) had set the interest rate at 22%. The debt received during FY 2024 by the country exceeds the COMBINED total debt received during FY's 2023 & 2022 i.e. - 2023: Rs. 37 trillion - 2022: Rs. 34 trillion - Total amount: Rs. 71 trillion The lamentable part is that for the next fiscal year, the government has already sought National Assembly 's approval to borrow Rs. 34.6 trillion to meet the needs for: · debt servicing · constitutional organs of state (includes President of Pakistan, Supreme Court of Pakistan, National Assembly, Senate, Islamabad High Court, Pakistan Post Office, Foreign Office, Federal Ombudsman Office) #economics #economy #debt #pakistaneconomy #pakistaneconomiccrisis #economynews #banking #finance #debtservice #imf #internationalbankers #budget

📈 Understanding Pakistan's Domestic Debt: Pakistan's domestic debt has been on the rise, reflecting the government's reliance on internal sources for financing budgetary deficits and development projects. While domestic borrowing provides a quick fix for fiscal gaps, it can lead to long-term challenges such as crowding out private investment, inflationary pressures, and debt-servicing burdens. Read "A Raging Fire" to learn more about Pakistan's #debtcrisis👉🏽 https://lnkd.in/dbk9v5Zf #Pakistan #Economy #Finance #ARagingFire

Mali is officially Debt free!