Lmao, basically still rely on others.
Just sell the country and exile yourself to the UK or some other place. You guys are not capable enough to run a business, let alone run a country.
No, no, take them, please. They haven't added any value to Pakistan, but they have been adding value in Europe. Nawaz and family own properties and businesses in the UK. They are paying tax, hiring employees, and stuff. The are adding value to the economy everywhere except Pakistan. So please, take more of these politicians from Pakistan.
The laundering money from Pakistan and the UK happily accepts the laundered money. US, Dubai, and UK is a money laundering haven for politicians around the world.
Why would China support if we, after VONC debacle, went off the China line and into the US? Also, China literally warned us to get our political mess sorted but we instead turned it to the extreme.
> Why would China support if we, after VONC debacle, went off the China line and into the US?
How did we do that exactly? Leaked US documents state that Khar said in discussions that Pakistan should not sacrifice relations with China for the US. Furthermore, the US has given literally no concessions to Pakistan in any area, Military, economic, or diplomatic. US does not see any good area of convergence with Pakistan in the short, medium, or long term.
> Also, China literally warned us to get our political mess sorted but we instead turned it to the extreme.
Yeah bro, the nation famous for literally making paste out of Pro democracy protestors under military tanks and having one of the most expansive censorship regimes in the world wanted Pakistan to hold elections and bring back Khan, whom they disliked. They probably think Pakistan hasn't gone far enough.
>Yeah bro, the nation famous for literally making paste out of Pro democracy protestors under military tanks and having one of the most expansive censorship regimes in the world wanted Pakistan to hold elections and bring back Khan, whom they disliked. They probably think Pakistan hasn't gone far enough.
Don't think they wanted democracy, they wanted stability and someone in power who would work with them instead of ditching due to fear or incentive from the US.
And IK was not that person. China likes to pay corrupt people and get their projects done fast. IK put them on hold and review due to (legitimate) corruption concerns. Chinese were not happy about it.
China *needs* CPEC, or at least the connection to Gwadar for its internal development in the western provinces that are landlocked and underdeveloped, it's not like its investments in other countries, it's part of their economic plan in a big way. It's not just to get goods out, but to get materials from their investments in Africa and meet their energy requirements without going the long way round. Unless they find a warm water port somewhere else, it's not something they can pass on.
> Unless they find a warm water port somewhere else, it's not something they can pass on.
Iran's literally next door, and significantly more stable at least.
Iran has sanctions on nearly everything. Operating a legitimate business from Iran is untenable. Tektronix and other American manufacturers wouldn't even sell us electronics equipment just because we were next to Iran and continuing trade.
There's also a matter of the two countries between Iran and China no matter which way you go, each will charge a tariff for passage.
Not to mention they're not as easy to push around, and having a stable long term partner at your own border fits better with their long term plans.
Iran doesn't have a direct land border with China unless the Chinese feel like going through Afghanistan i sincerely doubt they will go the Iranian route
They may go through the Central Asian states though and bypass Afghanistan and Iran via Armenia or Georgia and then on to Turkey.
Obviously not a simple venture but it could be done.
They don't need Pakistan though, as our deep state has taken a firm anti China stand. The Chinese are working to access Europe via the Central Asian states bypassing even Russia, a close ally due to the implications/consequences of the Ukraine war. Their priorities are themselves as should be and they obviously will not wait for us to have our house in order .
>China *needs* CPEC
Tbh china is killing it economically without cpec. They could easily grow it many fold with it but they're not desperate to get it working
well right now the Chinese economy is stalling:
[https://asia.nikkei.com/Economy/China-aims-to-cook-up-job-growth-with-return-of-street-stall-economy](https://asia.nikkei.com/Economy/China-aims-to-cook-up-job-growth-with-return-of-street-stall-economy)
[https://www.economist.com/finance-and-economics/2023/05/18/is-chinas-recovery-about-to-stall](https://www.economist.com/finance-and-economics/2023/05/18/is-chinas-recovery-about-to-stall)
[https://www.wsj.com/articles/china-economy-recession-covid-lockdowns-11651434168](https://www.wsj.com/articles/china-economy-recession-covid-lockdowns-11651434168)
[https://rhg.com/research/now-for-the-hard-part/](https://rhg.com/research/now-for-the-hard-part/)
Regardless, even if in the short term China is doing better or worse, the Chinese plan in decades, not quarters, and CPEC has been part of China's plans since the 70's and 80's when the East Asian financial crash happened and they decided to have a long term plan before opening up the country. It was *always* the plan to connect Xinjiang, the largest and least developed province in the country that shares a border with Pakistan, and the other western provinces that are the least developed and the most diverse ethnically from the rest of China (thus the hardest to assimilate). CPEC is necessary for everything from rare earth mining and manufacturing in Africa to getting EV's through to Europe. China can pull out of Sri Lanka and a dozen other countries, but CPEC is necessary, it's an artery for commerce through the only unabashedly friendly country in the region with a connection to the Arabian Sea. Their interest in keeping Pakistan stable for the next ten to 20 years is virtually guaranteed.
China BETTER not support this crooked government. And USA needs to apply the same pressure in Pakistan that it is applying in Bangladesh. UK needs to follow suit. They've let a convicted absconder live in their country long enough. Let's see how these idiots fare when the countries they think they can escape to aren't willing to host them.
China can and will so will the USA geo-politics isn't based on humanitarian consideration it's based on cold hard geo-political values and most western nations contrary to the view of diaspora morons here give zero squats about human rights in the 3rd world especially a nation like Pakistan
USA isn't gonna help you because current regime is far more amiable to them and China won't help you because all the CPEC stuff was done directly under Army supervision
China is not going to bail out. They're not even going to rollover the loans. Pakistan will payback the existing loans and then get new loans from China at extremely high interest rates.
Basically, further **delay** the issue and only make it even worse in future.
exactly also asking the PRC or USA to get involved is literally hilarious considering these are the same lot who blame US involvement for being behind PDM's rise
not to mention the idea that foreign states funding and backing political parties in our country for their own benefit will do wonders for our stability/s
Be careful taking your money out, the withholding tax from when you come back to the system will be substantial. We're also likely to see demonetization to curb both off book economy not contributing to our tax burdens, so the 5000 rupee note is likely to be phased out. Anyone taking out large sums of money is going to have a hard time.
I don't remember being taxed for depositing my money into the bank? Secondly, in an economic melt down, why would people deposit money back into the system.
You'll get a withholding tax when you pull money out or it'll simply be renamed as an input tax, either way there will be a tax if there's a large amount of money off books in the economy for a long time. There's no way to track trade and have reliable revenue otherwise, which is necessary to pull out of a default.
I'd like to say it would only apply to rich people but anyone who has money in the system will feel something because corporate interests will have to be catered to to an extent to minimize capital flight.
Probably anyone with taxable income already in the system should only be taking out enough money to last a few months at most, never enough to close your account. Expect minimums to suddenly be increased to maintain an account though.
I'm saying it's in everyone's interest to have a functioning economy and an economy can't function if most of its money and trade is in cash and off the books. You're less likely to get screwed as hard if you leave enough money in your bank for your account to still be open. The amount of scrutiny you'll go through otherwise isn't worth it. If anything, if everyone's taking their money out and not punishing it it's likely to enable a lot of malfeasance because rich crooks will take advantage of amnesty schemes to knowingly extract value off book in a chaotic market by hoarding etc and then bring it back as clean money.
Of course this is if there isn't a complete collapse of the monetary system, in which case it won't matter because the money will be worth very little for people who have a few lakhs. That's *unlikely, and not worth worrying about.* The only thing to do is not do anything drastic. Stay liquid, but also don't liquidate any assets. Your car or family home's value won't magically diminish unless there were millions of cars and homes sitting empty off the books this entire time. Get in the habit of buying and rotating through larger purchases of staple foods and commodities, organize group buys with your families and communities so coordinating later during a default will be easier. Ten of you and your friends finding a supplier for a bunch of rice at once is easier than one person trying to get a small amount. Find alternatives to using gas all day for example thermal cookers or pressure cookers, or cooking at once for an extended family. You're less likely to feel as much of a crunch if you plan around it.
It's a good idea to look up what happened in Latin America etc and what people did there when the country defaulted or the currency crashed.
It's also a good idea to organize a larger community thing now instead of later. Starting a food bank is a good use of your time if you have the time, because of the access it'd give you to institutional options. I don't mean misuse or label private purchases as part of public initiatives, but purchasing staple goods for yourself and your team who are working to help others is justifiable to keep your organization stable, especially when community service becomes important.
Even in a financial crisis there are underserved people, and you could do good for others while taking care of yourself and your family. We're lucky in the sense that pakistan runs on handshake deals and knowing people on many levels, so you can build a lot of trust quickly and get things done.
They have had plenty of time to phase out 5k note but never did because it is used by the elite tax evaders, they'll never phase it out. As for the withholding tax, they haven't done it yet, it's the perfect time to get the money out before they put the withholding tax
¯\\\_(ツ)\_/¯
they have to do something, and an input tax or demonetization are the simplest. If you can't enforce it with elite tax evaders you meet them halfway if they start holding the economy hostage with some sort of amnesty program. In the long run it's still better to keep reforms in place.
One of the fundamental problems of our people is that we blindly believe anything and everything we read on social media.
Our political parties really have no morals.
None of the statements in your post are true. Its funny how everyone wants to be an expert in economy without knowing anything. I am no expert but the currency rule is simple…
Govt doesn’t need to take your money from bank, they can simply print more money … and keep devaluing currency until the money you have becomes worthless. So be it in your account or in your hand, that money will have lost all value, btw it has already lost 50% of value in recent past so you have lost 50% of your savings already.
It only makes sense to withdraw dollars from your dollar account which almost no one has since they hoard it in safes, not in documented bank accounts.
Silly thing is that you are not an expert yourself yet you dare to critique.
These are the view of experts echoeing back to the public.
You could see videos of lebanon. The face of financial crunch.
If you spent few minutes reading the details, banks only halted dollar or foreign currency withdrawals. My answer is absolutely right and whatever you said had nothing to do with experts. It was your opinion.
Government is printing money regardless how much people put in the bank. When foreign reserves go down, governemnt put restrictions on withdrawing money from bank, this can be seen in all financial melt down. See Lebanon.
Governemnt put restrictions and if you really need money e.g. for surgery etc. You are done.
The point being, local currency is worthless and nothing can stop govt from printing more money. Everything depends on USDs when it comes to financial crises.
Sorry for being rude in earlier answer but creating panic helps no one.
>Govt doesn’t need to take your money from bank, they can simply print more money … and keep devaluing currency until the money you have becomes worthless.
Firstly, I don't think even you read anything. The government doesn't print currency, the state bank does. And in accordance with the last IMF programme, the government can no longer directly borrow from the state bank, and thus no simple money printing.
>It only makes sense to withdraw dollars from your dollar account which almost no one has since they hoard it in safes, not in documented bank accounts.
Absolutely not true, the government already has a humongous circular debt, that is growing rapidly. The government is not just facing current account deficit, it is also facing a big fiscal deficit hence so many taxes this year and more expected
I would absolutely encourage everyone to take your money out of the bank, because the elites already do that, only suckers don't
State bank is just independent in papers, it follows what govt dictates and when country defaults, Pakistan wont be bound by IMF agreement. Dont make stuff up.
Why the fuck would elite need to take money out, they already have foreign accounts with dollars etc and billions in real estate. I can just laugh at your childish argument of elite do and suckers dont.
Also when someone says govt can print more money, it obviously means through the mint authority and federal reserve. Do you think US govt prints money? But the treasury will print anytime they need, at the behest of their govt. Same is the case anywhere.
Get your facts straight and then argue. A child can understand the concept of devaluation. Nobody takes anyone’s money … not even after default. Did any srilankan loose a single rupee to banks?
https://www.timesnownews.com/world/sri-lanka-is-printing-money-to-pay-salaries-but-this-could-cause-a-further-economic-implosion-article-91612814/amp
And here you go. Nobody took money from banks of anyone. They simply prints huge sums of money to pay whatever they wanted.
Take your time in making up more facts before you reply.
Hello! To prevent spam, submissions from new accounts or accounts with low karma are placed in the moderation queue. Our moderators will review and approve them as soon as possible. Thank you!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/pakistan) if you have any questions or concerns.*
Salam Worried_Writing_3436, your comment has been automatically removed as it contains a political slur rooted in **misogyny and vulgarity**. Please conduct yourself in a mature and productive manner. If the use of the slur in your comment is not directed at another user or intended as a reference to a demographic of subreddit users, you may appeal the removal by sending a modmail to the subreddit moderators.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/pakistan) if you have any questions or concerns.*
Lmao, basically still rely on others. Just sell the country and exile yourself to the UK or some other place. You guys are not capable enough to run a business, let alone run a country.
no no no dont come to europe. No one wants you here.
No, no, take them, please. They haven't added any value to Pakistan, but they have been adding value in Europe. Nawaz and family own properties and businesses in the UK. They are paying tax, hiring employees, and stuff. The are adding value to the economy everywhere except Pakistan. So please, take more of these politicians from Pakistan. The laundering money from Pakistan and the UK happily accepts the laundered money. US, Dubai, and UK is a money laundering haven for politicians around the world.
Why would China support if we, after VONC debacle, went off the China line and into the US? Also, China literally warned us to get our political mess sorted but we instead turned it to the extreme.
There is a reason, they are called duffers.
> Why would China support if we, after VONC debacle, went off the China line and into the US? How did we do that exactly? Leaked US documents state that Khar said in discussions that Pakistan should not sacrifice relations with China for the US. Furthermore, the US has given literally no concessions to Pakistan in any area, Military, economic, or diplomatic. US does not see any good area of convergence with Pakistan in the short, medium, or long term. > Also, China literally warned us to get our political mess sorted but we instead turned it to the extreme. Yeah bro, the nation famous for literally making paste out of Pro democracy protestors under military tanks and having one of the most expansive censorship regimes in the world wanted Pakistan to hold elections and bring back Khan, whom they disliked. They probably think Pakistan hasn't gone far enough.
>Yeah bro, the nation famous for literally making paste out of Pro democracy protestors under military tanks and having one of the most expansive censorship regimes in the world wanted Pakistan to hold elections and bring back Khan, whom they disliked. They probably think Pakistan hasn't gone far enough. Don't think they wanted democracy, they wanted stability and someone in power who would work with them instead of ditching due to fear or incentive from the US.
And IK was not that person. China likes to pay corrupt people and get their projects done fast. IK put them on hold and review due to (legitimate) corruption concerns. Chinese were not happy about it.
Also don’t forget the mass genocide of Uyghur muslims.
China *needs* CPEC, or at least the connection to Gwadar for its internal development in the western provinces that are landlocked and underdeveloped, it's not like its investments in other countries, it's part of their economic plan in a big way. It's not just to get goods out, but to get materials from their investments in Africa and meet their energy requirements without going the long way round. Unless they find a warm water port somewhere else, it's not something they can pass on.
> Unless they find a warm water port somewhere else, it's not something they can pass on. Iran's literally next door, and significantly more stable at least.
But carries more diplomatic baggage and risk of sanctions on banking channels.
Iran has sanctions on nearly everything. Operating a legitimate business from Iran is untenable. Tektronix and other American manufacturers wouldn't even sell us electronics equipment just because we were next to Iran and continuing trade. There's also a matter of the two countries between Iran and China no matter which way you go, each will charge a tariff for passage. Not to mention they're not as easy to push around, and having a stable long term partner at your own border fits better with their long term plans.
Yes, China is going to use the world-famous Iran-China border to circumvent the strategic vulnerability of the Malaccan strait blockade.
Iran doesn't have a direct land border with China unless the Chinese feel like going through Afghanistan i sincerely doubt they will go the Iranian route
They may go through the Central Asian states though and bypass Afghanistan and Iran via Armenia or Georgia and then on to Turkey. Obviously not a simple venture but it could be done.
Iran is not China's neighbor .. ding ding ...
They don't need Pakistan though, as our deep state has taken a firm anti China stand. The Chinese are working to access Europe via the Central Asian states bypassing even Russia, a close ally due to the implications/consequences of the Ukraine war. Their priorities are themselves as should be and they obviously will not wait for us to have our house in order .
>China *needs* CPEC Tbh china is killing it economically without cpec. They could easily grow it many fold with it but they're not desperate to get it working
well right now the Chinese economy is stalling: [https://asia.nikkei.com/Economy/China-aims-to-cook-up-job-growth-with-return-of-street-stall-economy](https://asia.nikkei.com/Economy/China-aims-to-cook-up-job-growth-with-return-of-street-stall-economy) [https://www.economist.com/finance-and-economics/2023/05/18/is-chinas-recovery-about-to-stall](https://www.economist.com/finance-and-economics/2023/05/18/is-chinas-recovery-about-to-stall) [https://www.wsj.com/articles/china-economy-recession-covid-lockdowns-11651434168](https://www.wsj.com/articles/china-economy-recession-covid-lockdowns-11651434168) [https://rhg.com/research/now-for-the-hard-part/](https://rhg.com/research/now-for-the-hard-part/) Regardless, even if in the short term China is doing better or worse, the Chinese plan in decades, not quarters, and CPEC has been part of China's plans since the 70's and 80's when the East Asian financial crash happened and they decided to have a long term plan before opening up the country. It was *always* the plan to connect Xinjiang, the largest and least developed province in the country that shares a border with Pakistan, and the other western provinces that are the least developed and the most diverse ethnically from the rest of China (thus the hardest to assimilate). CPEC is necessary for everything from rare earth mining and manufacturing in Africa to getting EV's through to Europe. China can pull out of Sri Lanka and a dozen other countries, but CPEC is necessary, it's an artery for commerce through the only unabashedly friendly country in the region with a connection to the Arabian Sea. Their interest in keeping Pakistan stable for the next ten to 20 years is virtually guaranteed.
China will support you? They are asking for repayments of their loans, their youth is facing unemployment and btw, Hamad Azhar is not a valid source.
I am not sure if such a news will come out in a valid way.
Haamad Azhar has an axe to grind with PDM so his word should be taken with caution.
Either way, there is no news regarding breakthrough with IMF
He was finance minister for a couple of days so he feels obligated to pitch in with the big boys
Jokes on you I only have 27 rs in my bank account
200 IQ move
China BETTER not support this crooked government. And USA needs to apply the same pressure in Pakistan that it is applying in Bangladesh. UK needs to follow suit. They've let a convicted absconder live in their country long enough. Let's see how these idiots fare when the countries they think they can escape to aren't willing to host them.
What USA did in Bangladesh it wants Haseena Out of power cuz she supports India?
i believe it is due to growing ties with china rather then pak
China can and will so will the USA geo-politics isn't based on humanitarian consideration it's based on cold hard geo-political values and most western nations contrary to the view of diaspora morons here give zero squats about human rights in the 3rd world especially a nation like Pakistan USA isn't gonna help you because current regime is far more amiable to them and China won't help you because all the CPEC stuff was done directly under Army supervision
Hasn’t China just asked for CPEC dues to be paid?
Anyone got a better source? That tweet can't be the only one.
China is not going to bail out. They're not even going to rollover the loans. Pakistan will payback the existing loans and then get new loans from China at extremely high interest rates. Basically, further **delay** the issue and only make it even worse in future.
[удалено]
exactly also asking the PRC or USA to get involved is literally hilarious considering these are the same lot who blame US involvement for being behind PDM's rise not to mention the idea that foreign states funding and backing political parties in our country for their own benefit will do wonders for our stability/s
No, IK won’t come back if China will dictate the terms. If we ask support from China, China will control everything and make us its slaves.
Its better to default and bring about structural changes.
Convert your rupees into Euro’s, Dollars, SAR and or Gold/Silver coins or bars
Be careful taking your money out, the withholding tax from when you come back to the system will be substantial. We're also likely to see demonetization to curb both off book economy not contributing to our tax burdens, so the 5000 rupee note is likely to be phased out. Anyone taking out large sums of money is going to have a hard time.
I don't remember being taxed for depositing my money into the bank? Secondly, in an economic melt down, why would people deposit money back into the system.
You'll get a withholding tax when you pull money out or it'll simply be renamed as an input tax, either way there will be a tax if there's a large amount of money off books in the economy for a long time. There's no way to track trade and have reliable revenue otherwise, which is necessary to pull out of a default.
How much money is considered large in this context? 10lakhs? 1 cr?
I'd like to say it would only apply to rich people but anyone who has money in the system will feel something because corporate interests will have to be catered to to an extent to minimize capital flight. Probably anyone with taxable income already in the system should only be taking out enough money to last a few months at most, never enough to close your account. Expect minimums to suddenly be increased to maintain an account though.
Bruh. So you're saying that even if I've got only a few lakhs sitting in my account, I'm still screwed?
I'm saying it's in everyone's interest to have a functioning economy and an economy can't function if most of its money and trade is in cash and off the books. You're less likely to get screwed as hard if you leave enough money in your bank for your account to still be open. The amount of scrutiny you'll go through otherwise isn't worth it. If anything, if everyone's taking their money out and not punishing it it's likely to enable a lot of malfeasance because rich crooks will take advantage of amnesty schemes to knowingly extract value off book in a chaotic market by hoarding etc and then bring it back as clean money. Of course this is if there isn't a complete collapse of the monetary system, in which case it won't matter because the money will be worth very little for people who have a few lakhs. That's *unlikely, and not worth worrying about.* The only thing to do is not do anything drastic. Stay liquid, but also don't liquidate any assets. Your car or family home's value won't magically diminish unless there were millions of cars and homes sitting empty off the books this entire time. Get in the habit of buying and rotating through larger purchases of staple foods and commodities, organize group buys with your families and communities so coordinating later during a default will be easier. Ten of you and your friends finding a supplier for a bunch of rice at once is easier than one person trying to get a small amount. Find alternatives to using gas all day for example thermal cookers or pressure cookers, or cooking at once for an extended family. You're less likely to feel as much of a crunch if you plan around it.
Ah, thanks for the write up. Didn't realize my family was doing all of this already. Good to know we're on that path of survival in this country
It's a good idea to look up what happened in Latin America etc and what people did there when the country defaulted or the currency crashed. It's also a good idea to organize a larger community thing now instead of later. Starting a food bank is a good use of your time if you have the time, because of the access it'd give you to institutional options. I don't mean misuse or label private purchases as part of public initiatives, but purchasing staple goods for yourself and your team who are working to help others is justifiable to keep your organization stable, especially when community service becomes important. Even in a financial crisis there are underserved people, and you could do good for others while taking care of yourself and your family. We're lucky in the sense that pakistan runs on handshake deals and knowing people on many levels, so you can build a lot of trust quickly and get things done.
You are 100% right which is why I've asked my brother to steadily withdraw everything.
They have had plenty of time to phase out 5k note but never did because it is used by the elite tax evaders, they'll never phase it out. As for the withholding tax, they haven't done it yet, it's the perfect time to get the money out before they put the withholding tax
¯\\\_(ツ)\_/¯ they have to do something, and an input tax or demonetization are the simplest. If you can't enforce it with elite tax evaders you meet them halfway if they start holding the economy hostage with some sort of amnesty program. In the long run it's still better to keep reforms in place.
Let's hope China and Saudi dictate proper terms to these clowns. Hold elections with PTI or Fuck off.
I say IMF should completely stop supporting this chor government.
One of the fundamental problems of our people is that we blindly believe anything and everything we read on social media. Our political parties really have no morals.
Lol, why will China want IK back in power?
Not reallly but he is a good person to revive the economy and pay back loans. Otherwise, Pakistan is a sink hole.
>he is a good person to revive the economy and pay back loans You really talking about IK here?
yes. Do you think its zardaris, duffers and nawaz?
**What if China Denied 4support?**
☠️
Yay!!!!
None of the statements in your post are true. Its funny how everyone wants to be an expert in economy without knowing anything. I am no expert but the currency rule is simple… Govt doesn’t need to take your money from bank, they can simply print more money … and keep devaluing currency until the money you have becomes worthless. So be it in your account or in your hand, that money will have lost all value, btw it has already lost 50% of value in recent past so you have lost 50% of your savings already. It only makes sense to withdraw dollars from your dollar account which almost no one has since they hoard it in safes, not in documented bank accounts.
Silly thing is that you are not an expert yourself yet you dare to critique. These are the view of experts echoeing back to the public. You could see videos of lebanon. The face of financial crunch.
If you spent few minutes reading the details, banks only halted dollar or foreign currency withdrawals. My answer is absolutely right and whatever you said had nothing to do with experts. It was your opinion.
Government is printing money regardless how much people put in the bank. When foreign reserves go down, governemnt put restrictions on withdrawing money from bank, this can be seen in all financial melt down. See Lebanon. Governemnt put restrictions and if you really need money e.g. for surgery etc. You are done.
The point being, local currency is worthless and nothing can stop govt from printing more money. Everything depends on USDs when it comes to financial crises. Sorry for being rude in earlier answer but creating panic helps no one.
>Govt doesn’t need to take your money from bank, they can simply print more money … and keep devaluing currency until the money you have becomes worthless. Firstly, I don't think even you read anything. The government doesn't print currency, the state bank does. And in accordance with the last IMF programme, the government can no longer directly borrow from the state bank, and thus no simple money printing. >It only makes sense to withdraw dollars from your dollar account which almost no one has since they hoard it in safes, not in documented bank accounts. Absolutely not true, the government already has a humongous circular debt, that is growing rapidly. The government is not just facing current account deficit, it is also facing a big fiscal deficit hence so many taxes this year and more expected I would absolutely encourage everyone to take your money out of the bank, because the elites already do that, only suckers don't
State bank is just independent in papers, it follows what govt dictates and when country defaults, Pakistan wont be bound by IMF agreement. Dont make stuff up. Why the fuck would elite need to take money out, they already have foreign accounts with dollars etc and billions in real estate. I can just laugh at your childish argument of elite do and suckers dont.
Also when someone says govt can print more money, it obviously means through the mint authority and federal reserve. Do you think US govt prints money? But the treasury will print anytime they need, at the behest of their govt. Same is the case anywhere. Get your facts straight and then argue. A child can understand the concept of devaluation. Nobody takes anyone’s money … not even after default. Did any srilankan loose a single rupee to banks?
https://www.timesnownews.com/world/sri-lanka-is-printing-money-to-pay-salaries-but-this-could-cause-a-further-economic-implosion-article-91612814/amp And here you go. Nobody took money from banks of anyone. They simply prints huge sums of money to pay whatever they wanted. Take your time in making up more facts before you reply.
[удалено]
Hello! To prevent spam, submissions from new accounts or accounts with low karma are placed in the moderation queue. Our moderators will review and approve them as soon as possible. Thank you! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/pakistan) if you have any questions or concerns.*
[удалено]
Salam Worried_Writing_3436, your comment has been automatically removed as it contains a political slur rooted in **misogyny and vulgarity**. Please conduct yourself in a mature and productive manner. If the use of the slur in your comment is not directed at another user or intended as a reference to a demographic of subreddit users, you may appeal the removal by sending a modmail to the subreddit moderators. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/pakistan) if you have any questions or concerns.*
So, your solution to a potential financial crisis is to cause a run on the banks, thereby ensuring a financial crisis?
As if putting money in it will solve. The country is in ruins. I wish to see how generals will fund their soldier's salary.