Pakistan's Economic Revival Beyond Foreign Aid & IMF I PIDEcast Ep - 4

Pakistan has been a regular receiver of Foreign Aid since its inception. It would not be misplaced to state that Pakistan is addicted to aid! Since its inception, till FY 22-23, the commitments of foreign aid have crossed the $200 billion mark. There is no single, concise estimate of how much of that committed aid has actually been credited and disbursed. Based on the estimates from various sources, brought together and counterchecked due to their various methodologies, we estimate that at least $155 billion has been credited and disbursed/used up for various purposes (development and non-development) in Pakistan. This is besides the aid that was credited but has not been documented due to various reasons.
Please access the PIDE Monograph "Foreign Aid Donors & Consultants: Analysing the Pakistan's FA Inflow & Outcomes: pide.org.pk/re...
The important question of whether foreign aid has been helpful to Pakistan or not has remained unanswered as the available literature does not offer a clear answer, often bringing out a mixed bag, which is too general and vague. This research effort analyzes this question in light of criterion set by the influential Millikan-Rostow report on foreign aid, which are as follows-
- Transfer of resources in a manner that they don’t create future liabilities, especially long-term liabilities
- are NOT source-tied to creditor country, especially projects and services
- leads to economic development and growth in a manner that is sustainable and self-sustaining in the long-run
- raise marginal savings rate in nations receiving aid, which would lead to higher capital formation
- formation of additional capital should be complemented by a development program that helps enlarge the economy-wide capacity to absorb additional capital productively
1) Why can't Pakistan escape the IMF Loan/Debt trap.
2) What are some of the structural issues in Pakistan's economy
3) Why is Pakistan Addicted to Foreign Aid and IMF Loans? Foreign Aid: Blessing or Curse?
#Pakistan #Economy #Politics #IMF #Dollar #News #Elections #EconomicCrisis #Default #Aid #Debt #Loan #PIDEPodcast #PIDEcast #Podcast #Debate #Government #PTI #PMLN #PPP
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[@livewithamirhussain9202]

Well done Timely initiative Well articulated podcast

[@vivekprabhudesai9592]

8 billion $ reserve consists of 7 billion deposits which are non-usable from Saudi, UAE n China.

[@bojpuri423]

Whole year Forex is 55-60 billion Doller

[@bestofsatish]

India external debt does not have a single dollar Indian govt debt. Indian companies owned foreign assets is greater than $1 trillion. so net foreign assets is well over 300bn for private companies. RBI forex reserves is completely separate. Pakistan situation is very different. most debt is govt debt.

[@GuzzarAwan]

I think now recently Indian Bonds r listed by JP MORGAN and Bloomberg. So from now on Indian govt will first time in history will have Foreign dollar debt by selling their T bills on these platforms. We r expecting 30 billion coming in. And that's why Modi govt has followed STRICT FISCAL DISCIPLINE in budget and planned for deep reduction in FD in next 3 years.

[@bestofsatish]

@@GuzzarAwan With 650bn in forex reserves, there is no need for indian govt to borrow. it is only to please foreign investors complain of lack of Indian assets available to them. its a token response rather than indian need for dollars. india is neck deep in dollars. they dont need anymore dollars. the optimal need for Indian economy is only 300bn in reserves. India already have 350bn extra because foreign dollars are pouring in and Indians does not know how to spend these dollars because most goods are already available in india that there is no need for import. Also your last statement makes no sense by the statements explained above. Also the strict fiscal discipline is budget is due to keeping money circulation in control so that economy does not overheat due to excess capital available leading to massive speculation in assets like real estate and stocks. Indian stocks are trading at historical valuations and Indian stock regulatory authority has warned about it of massive bubble building. if fiscal discipline is not followed, you are going to pour fuel into fire. What india is experiencing is completely opposite of pakistan facing. India faces problem of excess dollars which is also a concern while Pakistan faces problem of dollar shortage. Capital flow must always be balanced for healthy economy

[@AKumar-co7oe]

Indian govt bonds are rupee denominated even on the index - correct me if I'm wrong​@@GuzzarAwan

[@KGopidas]

Vijay mallya and nirav modi have details. Theirprotectors are culprits

[@asadraza1666]

In my opinion, indian diaspora is the backbone of indian financial strength. For example, in Gulf, almost all are indian companies but in name. Now indian companies are officially running business. It has a snowball effect. Even in those countries where there is no oil. Indians were running business e.g. East Africa and Afghanistan in the past.

[@MuhammadSaeed-gc3ok]

PIDE is playing it's key role as a National Think Tank, Well Done PIDE Team. Well articulated Shahid Sb & Dr. Nadeem

[@VijeDerm]

Guys India’s GDP debt ratio in 2024 as per IMF is 77% china’s 140% USA’s 130%, also consider India’s gdp growth 8% inflation at

[@vp6945]

Nobody in Pakistan talks about the elephant in the room which is the Pakistan army which runs a huge business empire ranging from food, cereals, cement factories, baby diapers, housing societies and plots and now corporate farming and practically are heading major departments which have no relation to security and the military officers have become billionaires. Nor does anybody talk about the so called game changer for Pakistan called the CPEC project and what has it achieved in the 10 years of its existence other than giving China a paid for freeway till Gawadar port. How much has Pakistan gained from CPEC and how much Pakistan owes to China nor about the rate of interest rate at which China has given the loans to Pakistan. Obviously anything related to China is a state secret.

[@yasirpk2002]

Capacity building in FBR is new cars for officers and new laptops

[@syedbadshah12345]

Great podcast Short and sweet Please add timestamps as well Subscribed

[@PIDEOfficial]

Appreciated. Dear Syed Badahah, your suggestion for the time stamps are noted, will definitely add in future videos. Stay tuned @PIDEOfficial and share your thoughts on our other videos as well.

[@prakashsahoo1954]

This is really very scholastic discussion. The expert has exposed the 'financial terrorism/financial bullying' by rich countries upon poor countries. This is universal not only Pakistan specific. Your discussion reminds me my school days when I studied economics a little bit specially this topic. Moreover, I wonder Pakistan has such great scholar who thinks so professionally and logically. I'm very satisfied to listen to the discussion. Thank you!!

[@PIDEOfficial]

Thanks for the feedback, stay tuned @PIDEOfficial please do share your comments on our other content as well.

[@MohsinAli-ct7dt]

great debate, timely recorded and uploaded

[@majidiqbal3436]

Really informative session, unleashing facts and ways how Aid causes the economy to remain in dismal situation. Love Dr. Shahid analysis, always having straigtforward and realist views. Thankx PIDE for uploading such valuable work.

[@PIDEOfficial]

Thanks for the Comment, Stay tuned at @PIDEOfficial, keep sharing your feedback on other videos as well.

[@bhavinsampat590]

Pakistan was created by british and its western allies to serve Western interest in region and not for regional people. Jinnah was great servant of british who never fought to them or went to jail or critisize british policies. Jinnah was popped up to weaken freedom fight of indian congress.

[@asadaziz6429]

From Pakistan agree with your point of view.

[@rejijai9120]

sir, please take up one particular foreign aid/ capacity building support in granular detail, like health care or education and exmine the outcomes. We are all aware of the generic data

[@IliMan2khel]

To make it simple, the thing here is help in times of need. For example, I want to build a business, but have no money. I go to a bank and ask for a loan. The bank provides me loan with an interest rate, which is as per the policy of the bank. Now, the bank is only concerned about its agreed-upon repayment of the loan. I am the one who will build business or waste that money. if, now, Pakistan fails to capitalise on that $ 155 billion or $ 157 billion, what the lender has to do with that. We should stop donning victimhood, and, instead rethink our course of action.

[@jspillai1869]

Paxtan need to approach its Ummah birathers or Sweeter than Honey brother Cheen!

[@Indus720]

Lol, Junju quom ne Jihaad Kashnir Gaza Fatah chodkar .. Dollars ki Imdaad ki Fiqar ho rahi .. Amreeki Ghulami namanzur!

[@gmajal]

Sir! Please talk about productivity. What is it. How is it measured. Where do we stand against the rest of the world. How to measure and improve productivity. What are the major economy sectors where we should focus on the matters related to a culture of productivity.

[@PIDEOfficial]

Dear Ghulam Kafeel, Thanks for tuning in @PIDEOfficial. We have noted your suggestion, will do podcast on productivity as well. You can access our debates on Productivity that are already uploaded on this forum, just click on the links below. kzbin.info/www/bejne/hqOsfWyJhtufeqs kzbin.info/www/bejne/fZSXlJuKob2njac kzbin.info/www/bejne/h5XUl5menNiEg7s kzbin.info/www/bejne/poS3qXh8ebZqm68 kzbin.info/www/bejne/hXubdoyDlr6orrc Keep sharing your feedback in future as well on other videos.

[@munawarahmadmajoka3736]

Can you please do a podcast on the expenditure side of annual budget ?

[@PIDEOfficial]

Thanks for the suggestion Munawar Ahmad sb, your point is noted. We will definitely discuss this issue in our upcoming Podcast. Stay tuned @PIDEOfficial

[@munawarahmadmajoka3736]

Thanks. Will be waiting

[@muhammadwaseemsajjadkhan8912]

Basically Economic aid is economic infaction disaster in any country economic stability. So try to reduce it

[@ahsanmughal32]

install noise cancellation foams thanks and keep up the good work

[@friendsgroup470]

Sahi to hai sound, head phone lagake sun

[@SulemanAbbas-jp3im]

discussion should not be about corrupt officers rather it should be why there are officers who are not honest

[@bestofsatish]

I dont think there is more corruption than india. Infact pakistan corruption is much much less similar to other middle east nations like Iran, Iraq. The root cause of pakistan misery is due to islam which does not value sweat and equality. So most islamic countries dont do dirty work like steel, coal, machined goods, ship building and other heavy and medium industries where you have to work in hostile conditions. Textiles, bats, ball are light industries. rela litmus test is when you let women who run lathe

[@bestofsatish]

Apart from that other macro policies are very important like increasing savings, reducing consumption, encouraging industrialization etc

[@SHIVAMYadav-pw5uz]

​@@bestofsatishwhy turkey, Indonesia and malesia are different.. despite being a Muslim country??

[@SulemanAbbas-jp3im]

@@bestofsatish i think instead of cursing muslims why not curse your creator who did not deem you worthy to make you his chosen race, why are you people so under some inferioirty compleex man, excuse spelling

[@masterstroke7163]

People discussing the issue also get the funds to run their home kitchens from the same GRANTS/ LOANS. Are these people willing to do the same job without accepting any monetary benefits from these GRANTS/LOANS?

[@alokagarwal3714]

Fantastic reseaech: First beg and then blame the donor for all your problems

[@shahidrazzaque1980]

When Shahid Mehmood became doctor?

[@abhishekkandlkar2624]

India 🇮🇳🇮🇳

[@AjitKumar-lo9yu]

What this expert saying that institutes like Comptroller General is a waste of money, seriously. In the world over the comptroller general is the backbone and police of public spending by the Govt by the audits this institute carry out. In India it is called CAG (Comptroller Auditor General), it is one of two institutes after the Election Commission of India who are Completely independent without any Govt interference. But i guess in Pakistan the institute which is thoroughly independent (except for America and Saudis) and which has all the solutions for Pakistan is the Pakistani Army 😂😂😂😂

[@SulemanAbbas-jp3im]

zero knowledge observed in the reseach fellow's observations, basically just regurgitating the same old story. infact few things he mentioned dont even make sense. For instanced, he had open bias against gov. officals who went on to get trips, however, he seem to preclude the fact that there hardly any honest public officers, so his truth was incomplete/lie

[@KGopidas]

Change to build operate lease return model

[@KGopidas]

More reslisticsllg, ehe a factory failsin gthe west, it is duddely neededin the third world. Say civilisn aircraft, conventional automobiles

[@KGopidas]

What about foreign investment, in Filhs ways, Fe they djfcsfdng from said?

[@KGopidas]

There is an acute shortage of ethi al bumsn resourcrs. There is exte sive politicsl appointments.

[@KGopidas]

Condulting firms afe legitimisers

[@KGopidas]

Most oc them ade accountjng fraudsters