Collectively, financial sector’s risk indicators have significantly strengthened since the last financial crisis of 2008. In terms of capitalization, the industry boasts of a CAR of 18.7% , ADR of 46.3% and about 53% of the asset base is liquid …
Read More »Review of foreign loans during July-Dec 2020
Statistics show that during July-December of fiscal year 2020-21, Pakistan has received $5.7 billion in external loans from multiple financing sources. Total inflows were 46 percent of the annual budget estimate of $12.2 billion for the ongoing fiscal year. In …
Read More »Giant firms have a hidden borrowing advantage that has helped keep them on top for decades – new research
When the COVID-19 pandemic first hit, it seemed like the day of reckoning for over-stretched corporate borrowers was finally at hand. For years, pundits and policymakers had been warning about a dangerous build-up of the debt of “non-financial firms”, meaning …
Read More »Foreign debt in statistics
Presently Pakistan’s external debt and liabilities reached historical level of $113.8 billion at the end of September 2020, due to fresh borrowing from multilateral and bilateral sources on account of public debt. The economists reveal that economic growth and development …
Read More »IPPs and circular debt: concerns and solutions
Circular debt is one of the biggest challenges Pakistan’s energy sector is facing since 2008-09, which has just crossed the PKR 2.2 trillion mark. As a matter of fact, circular debt is quite a natural phenomenon in the energy sector, …
Read More »Can pre-paid electricity meters help solve Pakistan’s circular debt crisis?
The Government of Pakistan has recently tabled an Amendment Bill to the National Electric Power Regulatory Authority (NEPRA) Act (Regulation of Generation, Transmission and Distribution of Electric Power Act 1997) to recover the stock of circular debt in the power …
Read More »Review of Pakistan’s foreign loans
The present government of Pakistan statistics showed that, took over $13 billion in foreign loans in the previous fiscal year — the second highest amount in history — to repay maturing external debt and cushion the shrinking foreign exchange reserves. …
Read More »The Countries with the Largest National Debt Burdens
This chart uses IMF estimates to show the countries most burdened by their national debt. Japan has by far the biggest problem, with general government gross debt at 238 percent of its GDP. In fourth place, the economic struggles of Lebanon add an extra …
Read More »Pre-Pandemic Household Debt at Record High
When millions of Americans started losing their jobs due to the coronavirus pandemic in March, the federal government introduced the Federal Pandemic Unemployment Compensation program (FPUC) as part of the CARES Act. The program, which provides jobless Americans who qualify …
Read More »Budgeting amid uncertainties and aspirations
The federal budget for 2020-21 is set in difficult circumstances with an exceptional degree of uncertainty generated by COVID-19. The economy was already reeling under the sharp slowdown brought on by the macroeconomic adjustment that began last July with accession …
Read More »Paying for coronavirus will have to be like war debt – spread over generations
The macroeconomic shock to the world economy from the COVID-19 pandemic is arguably unprecedented in modern times. The financial response by governments of the major economies has been substantial. The Center for Strategic and International Studies estimates that the G20 …
Read More »Review of public debt in Pakistan
Analysis of Economic Survey FY2019 of Pakistan recorded that the main purpose of public debt management is to make sure that the government’s financing needs are met at the lowest possible cost over the medium to long term, consistent with …
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