Negotiations are going on between Pakistan and IMF, one of the tough condition is to increase basic key interest rate to about 19 to 20% by state bank, This will make Borrwing very difficult in near futuire, Most of the developmental Projects may be affeted, sales of new cras and Houses will go down and New industries, and agriculture sector will also be negatively effected. The country which already has lots of internal debt this interest rate will really killing,
The only upside of this interest will be it may increase remittences and decrease the spending help to decrease deficit. so it is two way sword whch might be cutting Your own throat more than enemy.
This may or may not affect national saving rate as it is separte issue[being long term Bond]
Hello replied on Thursday, October 30, 2008 08:00 AM
Wellcome to democracy, It is no surprise. It was known along.
No problem we will call active military to solve our problems, to help us in earth quake, build roads, to fix our economics, raise forex, fix our currency, provide security without resources, brave sucide attacks facilitated by Politiicans.
I think any country or individual would be willing to give loan at 20% markup.
I offer govt. of Pakistan pledge Karachi and Lahore air port with overseas Pakistanis and we give you 1billion$ loan at markup of 19%.
If by any chance govt. fails than we take over both airports!
I thin kit is not a bad offer at all considering that new airport like Lahore may not cost around 200million and both old airports should not be worth more than 500million.
I think Zardari and Sharif will be our biggest competition as they wish to buy whole Pakistan by just printing currency notes at their homes. |
CDW replied on Thursday, October 30, 2008 08:10 AM
I was in discussion on the same topic with a fellow citizen today.
He had two main concerns about maturiy and encashment of DSS (Defense saving certificates / National Saving Scheme). Has anybody tried at present to cash the matured cerificates with GPO/Habib bank etc? Do they pay same rates on ROI?
Also, what's the future of these certificates? Is it safe to keep them? or withdrawing is better?
Many overseas Pakistanis are confused in this scenario. They are confused as to either cash these certificates? or invest in real estate? or seek other mode of investments. As eventually ruppee is falling down, and inflation is making NSS cashed money of less worth.
Please, share your thoughts on the above subject, as it's of concern to many overseas people.
May God Bless Pakistan, and inshAllah we will come out of this crisis. Ameen. |
Sheraz replied on Thursday, October 30, 2008 09:40 AM
Looks like it is taken care of. IMF agreed on no interest rate hike
http://www.geo.tv//27835.htm
Pak rupee also showed appreciation after this news so it looks like the foreign currency buying culture will now take a back seat and realestate should pickup. |
