@Imran A.
How does loan to GDP ratio even matter when Pak Government would not have enough money to pay back the loans. Ishaq Dar was bankrupting our government in the hope of increasing GDP... GDP does not pay loans, decreasing budget deficit and improving taxation does. Ishaq Dar was further increasing our budget deficit, Pakistan government would eventually have to be bailed out and then our GDP would be worse than when Ishaq Dar would have become FM.
You can topple 10s of Govt. However, You cannot run just 01.
Brother, I'll find sometime to share figures of who borrowed what and where did that go. Else subjective statements are too mainstream and purely boring for any productive discussion.
In the meantime, starter:
Nawaz says 'goodbye' to IMF as final payment cleared
https://www.dawn.com/news/1275361
Aug 2016
Yes, increasing GDP helps with loans ... When someone income grows he is not only able to progress but also able to pay the lonas it's as simple as that, no rocket science!
Well explained by Imtiaz Sb. Expansion in GDP automatically triggers increase in tax collection therefore gives government greater ability to pay the installments towards loans.
Loans and well managed deficits are not bad at all, as long as spent on development and infrastructure to create jobs and help businesses grow.
If anything needs to be cut, it should be the size of the government and its institutional spendings.
Imran brother, Dar was no less of a moron but he had a smaller mouth and a bit bigger brain than these 22 Salaa Jehdu-Jehad Squad with 200 Maashi Mahireen ki Team
3 tu try ker liye khan sb nay, 197 +/- baaqi hain abhi!
Dar used to say GDP in the Economy is Like a Cake in the Party. You Grow the Size of the Cake and Everyone gets a Bigger Slice. He made that work five years in a row to make the cake bigger (3.6 to 5.6)
However,
The Folks:
They had eyes on whole cake not the slice so they ousted Dar to have their hands on the cake and it got messed up big time, biggest mess for folks themselves.
The Cult Followers:
They are still in a mode to believe that Bigger Cake (5.6) in Party was all artificial while a Small Pastry (1.4) left now is the real deal.
The Clown:
He is not gonna exit the party until he licks back all that he used to spit on other's cake. (Shaikh and Tareen are two day light examples of Lick Back whats been Spitted Previously)
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The cult followers will be allergic to data/figures. Best of the best argument:
- Dar was a Disaster. 5 Years on Increasing GDP, stable Inflation, stronger PKR, growing Infrastructure Funds were all artificial.
Umer, Shaikh, Tareen as the best men to get the job done for 50 lakh ghar and 1 corer nokrian. Start with Andaa/Katta/Langar and its all steps and indicators in right direction.
One thing to note is Imran. Khans hijacked wife is from Langar khana squad so he is convincing IK to make the whole country langar khana and all people pure beggars..
What good is a prime minister when he advises people to keep chickens and sell eggs? poor people already know what to do with chickens..
That's a whole new game and rules man ...
As per that mindset it has to be:
-- ع + ع in Center & Punjab to Survive. It has to be 'ع' No matter even if Punjab being turned into a trash!
-- Go to funeral and you are a gonner. If some community members got brutally murdered years after years and asked PM to come to funerals so state takes it seriously. It's called Blackmailing.
Too much other crap of same category but let's leave that out for some other time and place ...
Imtiaz Sb,
Jiska kam usi ko sajhey
Having exposure towards something is one thing and being a master of that field is totally something else.
Sadly every 10 years, these folks take our country back to 1958 instead of letting systems evolve and grow and incorporate right man for the job while letting the bad apples filter-out.
I honestly have no hope for our economy atleast for the next decade or so. And I actually voted for PTI :)
After registering healthy gains, PKR is now taking downward strides. Let's hope this is routine fluctuation and it remains within the ballpark.
@Isloo1, I don't mind if dropping again by 7-8 % :)
Having another big payment to make...
Yes Sohail Khana..... As per tribune Leak
$16b to be borrowed to retire debts in FY22
(Higher import bill might be a cause as well)
Sohail brother, if Umar didnt disappoint you (2019), Shaikh didn't either (2020), rest assured Tareen will not as well (2021).
Its Tareen time to greet you with: ھور کوئی ساڈے لائق ... :)
So what are the indicators now… Is PKR going to depreciate or retain its value.
First Indicator will be Jun-11/12
Second and more realistic will be Jun-30
@Sohail and @ZA,
For the time being rupee is sliding down, but it's too early to predict the trend. Not clear how State Bank would react to this. Would they try to control it or let it go with the flow.
-- Let it slip will further escalate Inflation, Austerity, Balloning up debts ...
-- Try to control will be spit-swallow (back-track on last 3 yes stance 'Dar Nay Dollar ko Artificilllay Dabaa Rakhaa Thaa'
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Governance is a Double Edged Sword, unless clown in-charge, doesn't matter in that case!
Busharraf era of selling motherland to Americans is back. So is his clown FM Tareen.
They are hoping to get free dollars again and fix things for a bit and when economy goes down the drain they will hand it over to zardari or some other tout hungry for power and sit on fenceline to blame civilians again.
@Imran, yes "Bloody Civilians" are responsible for 70 years of mis-rule, plunder, and wholesale destruction of economy and society. And when this "hybrid" govt of these baboons will fail, it's again civilians to blame. Kaisa...?
On a different note, does anyone want to offer any comment on budget 2021-22 and it's effect on real estate market. I did not find anything in the speech. (since there isn't much on it, so it does not deserve a separate thread. Sorry, if a bit off-topic here.)
This time it was more for the Auto (particularly for 800 CCs or less and Electrics) rather than RE.
Though I did read some stuff regarding Capital Gain , perhaps some reduction in CGT, need to double check though.
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Bad for the 5G lot that their battle ground (internet) has been taxed...
Capital Gains Tax on stocks has been dropped to 12.5% from 15%.
Dear Isloo1 brother
Investors, Dealers & Realtors think that budget have no impact on real estate. But Im having different view as usual. Here is the list of facts i consider.
1. No new taxes on real estate sector as were imposed in 2019-20.
2. Reduction in DC rates on many areas in different cities will reduce the tax amount.
3. Continuation of low cost loans for housing policy.
4. Real estate in pakistan heavily depend on remittances. I expect increase in remittances for atleast next 2 years.
5. Continuation in new development projects such as RRR realignment. MA completion. Malir expressway, lahore ring road southern loop 3 & 4 etc.
6. Govt is willing to remove WHT tax regime upto 40%. Any ammendment afterwords, in application of section 236C (WHT purchase of property)& 236K (WHT on sale of property) Will give real estate sector a boom.
7. Incentives from DHA bahawalpur & multan for development charges waiveroff till december 2021.
8. Possiblity of amnesty extension, although probability is 50% only but they will try to gve further stmulus to constuction industry.
9. Govt decision to start new housing projects under PHA.
10. Oversease pakistanis income increase due to rupee devaluation as compared to 2018.
11. Interest rate is still at 7% & real interest rate is negative as per precidence and seems to remain single digit as govt wants to go towards growth, instead of financial tightening once again. So peope will avoid bank deposits. This cash will go in real estate or stock exchange.
12. Govt is going to abandone National defence savings, 25,000 & 7500 denomination prize bonds, to start documentation of new name registed prize bonds on FATF pressure. This will casue almost 11 billion rupees to flow towards realestate or stock market.
13. All of above factors are increasing demand for real estate, but the supply of realestate investment options is limited. Means most of the genuine societies are more than 5 years of age. No new Dha no new bahria no new CHSs.
14. Govt is going to regularize majority of housing societies that are developed but not granted any NOC yet.
15. Lack of investment knowledge in nation collectively in stock exchange. So the real estate is our national investent avenue.
16. Lack of knowledge of investment in physical bullion gold. hence people buy gold from jewelers that is not much profitable.
17. Restrictions in purchasing of foreign currency, hence creating a hurdle in investing in foreign currency.
In short, directly or indirectly, budget 2021-22 has many positive impacts on real estate sector.
I hope all these factors will keep on moving the train forward for next few years.
Regards,
Humayyun.