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Will Indian FM give Pakistan more IMF loans?

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  • Rudra
    replied
    Well C M , your research has inspired me to refer this to my relative who works with the World Bank and who s associated with the IMF and he had this to say about External debt ... this depends on two factors.. how much you are eligible for and houw much you require. He has this to say about external debt. It all depends on whether it is the form of investment in infrastructure and growth of the economy or in supplementing activities of need such as health, food (in case of famine) etc . I know for fact that 65% (give or take 10% ) is for infrastructural development that is a form of investment as it boosts the economy and hence the earnings of a country, in short like the investment you make on a business. In the same way it takes time for a business to become profitable, it will take some time for a country to bcome independent financially .. also he mentioned that loans are given on the capacity of the country to pay it back. India's gold reserves are what got it loans when India was on the verge of collapse before narsimha rao introduced reforms.
    More on this topic later after I get som more authentic information

    (ps:- dont take this info as trash just because my relative is Indian :0)))))

    Rudra

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    Religion was created by man.....but dont forget......man was created by God.... Allah Ho Akhbar, Halleluiah, Jay Dev..... all are salutations to the Great One....

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  • CM
    replied
    Kudra lets say that india has to pay 4 billion dollars back in interest per year (this is a very low estimate).
    With exports near 36.3 billion dollars, and 50.6 billion dollars of imports, you already in trouble as you have to pay that 36 earnings plus 14 more to pay all your imports plus the 4 billion in interest!!!
    So you end up borrowing more and more to pay all this back.
    Thus you get more debt and larger interest etc.
    You see that it is a circle.
    You can't get out of it.
    However pakistan has to pay 30 miilion in interest (over estimate) with exports of 8.4 billion and imports of 9.8 billion so this way.
    We lose our 8.4 billion but we also have to only pay around 1 billion extra.
    And since our exports this year have increased along with investment, we might get rid of our debt faster.

    Now you can see that the larger the debt the more strain there is on the govt to build infrastructure and stuff as they have a limited amount of money.
    And paying all these loans and stuff we loose a lot more money as it is.
    So india and pakistan with a large debt is not good.
    But pakistan is in a better position

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    CROIRE A L'INCROYABLE

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  • Malik73
    replied
    Rudra on your logic India has as much debt and borrowing as PAK? So that was my point? - are you agreeing?

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  • Rudra
    replied
    India has a ext debt of 100 bilion , Pak has a debt of 31 billion .. cool ... looks bad for India I must say .. except for one small detail ... if you are going to analyse on actual terms , consider that India is 3 time geographically bigger , the industry is 3 times bigger etc etc .. so if India is mostly on the same level of Pak .. if India had a lesser external debt that would mean its a much more developed country ...for that matter USA has the largest debt amongst countries ,,, does that mean that USA is on teh verge of collapse ????? My friends ... its the economy and infrastructure that makes the difference .. not the size of the debt a country has.

    Rudra
    Mumbai

    ------------------
    Religion was created by man.....but dont forget......man was created by God.... Allah Ho Akhbar, Halleluiah, Jay Dev..... all are salutations to the Great One....

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  • CM
    replied
    Cool, i didn''t know that.
    And you i am the fountain of information!!!!
    Aren't i modest!!!

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    CROIRE A L'INCROYABLE

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  • Malik73
    replied
    "Bhatija" Sadhu -

    Pakistan has never once defaulted on its loans... but some facts for you:-

    - Pakistan has borrowed some 60 billion dollars over the last 30 years.

    - Pakistan has paid back 29 billion dollars over that period.

    - Hence a national debt of 31 billion dollars still outstanding.

    - Pakistan is paying 2.5 billion dollars a year back in loans back ... and borrowing less and less each year.

    - If this pattern continuses then by 2010 Pakistan will not need to get any loans... and will just be paying back its loans.

    Now tell us about India - which has a NATIONAL DEBT OF 100 BILLION DOLLARS+ AND IS BORROWING SOME 4 BILLION + A YEAR!

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  • CM
    replied
    Sadhu son what is with all the questions??
    What are you a toodler??

    Anway i will answer these till Mailik can get on line and answer them properly.

    A. How much - they haven't decided yet.
    B. What will they do - Hey don't have the money yet so they can't think of anything yet
    C. Pay Back?? Only Allah Knows!!!
    D. Previous Loan - No you must be joking!!!!
    E. Last loan - economic development that is all.

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    CROIRE A L'INCROYABLE

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  • Guest's Avatar
    Guest replied
    CHACHA Malik 74,

    How much loan Pakistan Will get? What they will do with this money? How they will pay back? Have they paid previous loan back?
    What they did with previous Loan? Is it use for Economical Development of our country or used for our well known terrorist activities?

    Leave a comment:


  • CM
    replied
    Look, i am doing a course right now dealing with the IMF and other UN organizations.
    Only the donor countries can say yes or no like Ullu said.
    The pres doesn't do jack **** about that.
    The amount and time is once again stated by the donors.
    But i do believe that Pakistan will get loans, if pakistan does go to economic chaos, you have a fear of pakistan going rogue and then none of the world is safe least of all india.
    And since we have nuclear capability the west will never let that happen.
    So sorry Dhir, no fantasy of yours is going to come true for now.
    Pakistan will get the loans and you pres can't do anything about it.

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    CROIRE A L'INCROYABLE

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  • Malik73
    replied
    Before Indians lecture us on foreign loans or dream that they can decide if we get foreign aid, could they tell us how many foreign aid India gets?

    After all India has an external debt of some 100 billion dollars! - 3 times Pakistan's size? So where was that all borrowed from?

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  • Guest's Avatar
    Guest replied
    Answer to the original question


    Pakistan will definitely get more loan, infact they will get extremely more than their repayament capacity. Once in default, then Pakistan will be under IMF controll
    territory and have to listen to the governing body og the IMF. Once this happen then no more terrism,or wars with India

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  • dhir
    replied
    Yeah, but that will make Pak's position more vulnerable. Politically it stands more or less isolated on a good number of scores, major being overthrowing of democracy. But it can count on some of its Islamic partners which time and again provides it with soft-buyer-loans of millions of dollars worth presumably for purchasing oil from them.

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  • ullu
    replied
    Originally posted by dhir:
    riginally posted by Malik 61-62:
    Anyway India itself has a external debt of 100 billion dollars! so it cant really say anything except "can we also have a couple of billion more as well?
    61-62, WB and IMF do not take a decision on whether to give further loans on the basis of what is already given, but on the basis of whether a country would be able to repay/ willing to repay/economic strength (or the road it is taking) and proper utilisation, in all of these Pakistan is lacking.

    [/QUOTE]
    There will be political conditionalities associated as well which will not be openly stated. If u remeber when India was in IMF program in 91-92, India ended up freezing its missile tests.

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  • dhir
    replied
    riginally posted by Malik 61-62:

    Anyway India itself has a external debt of 100 billion dollars! so it cant really say anything except "can we also have a couple of billion more as well?

    61-62, WB and IMF do not take a decision on whether to give further loans on the basis of what is already given, but on the basis of whether a country would be able to repay/ willing to repay/economic strength (or the road it is taking) and proper utilisation, in all of these Pakistan is lacking.

    [/QUOTE]

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  • Malik73
    replied
    This is a case of Mohabbat in dreamland. Its exactly as Ullu as has said its the donors who decide not individual chairpersons.

    Anyway India itself has a external debt of 100 billion dollars! so it cant really say anything except "can we also have a couple of billion more as well?

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