30th September 2020 - Pakistan Zero Day
What is Zero day?
The day when a bank or a country or an entity goes bankrupt is called Zero Day (not to be confused with computing terminology).
In other words, when a country's treasury goes to zero, that day is Zero Day.
What is Foreign-exchange reserve?
Foreign-exchange reserves (also called Forex reserves) are, in a strict sense, only the foreign-currency deposits held by national central banks and monetary authorities.
How much Forex reserves does Pakistan have?
As of May 2019, Pakistan's Forex reserves was measured at $14.47bn according to State bank of Pakistan
What happens on 30th September 2020, especially for Pakistan?
This is the day Pakistan will go bankrupt. There will be absolutely no money with Pakistan to pay it's bills and dues
NOTE: Saudi debt, UAE Debt, inflation adjustments not included
Pakistan GDP Growth according to IMF - 2.4% without inflation. Including the inflation rate means, Pakistan is in recession already.
Interest Rates set by State Bank of Pakistan - 12 to 13%
LESS THAN YEAR FROM NOW, PAKISTAN WILL GO BANKRUPT!
Potential outcomes and solutions will be included in my next post.
What is Zero day?
The day when a bank or a country or an entity goes bankrupt is called Zero Day (not to be confused with computing terminology).
In other words, when a country's treasury goes to zero, that day is Zero Day.
What is Foreign-exchange reserve?
Foreign-exchange reserves (also called Forex reserves) are, in a strict sense, only the foreign-currency deposits held by national central banks and monetary authorities.
How much Forex reserves does Pakistan have?
As of May 2019, Pakistan's Forex reserves was measured at $14.47bn according to State bank of Pakistan
What happens on 30th September 2020, especially for Pakistan?
This is the day Pakistan will go bankrupt. There will be absolutely no money with Pakistan to pay it's bills and dues
| Forex reserves | $15bn |
| State Bank of Pakistan | $8bn |
| Private Players | $7bn |
| Current Account Deficit (Imports - Exports) per year | -$12bn |
| Current Account Deficit target | -$6bn (This is impossible to achieve for variety of reasons) |
| # of IMF bailouts | 20 |
| World Bank Fine for Reko Diq mine scandal | $5.95bn |
| Interest for CPEC from June 2020 | $400mn |
| Interest on IMF bailout | NA |
NOTE: Saudi debt, UAE Debt, inflation adjustments not included
Pakistan GDP Growth according to IMF - 2.4% without inflation. Including the inflation rate means, Pakistan is in recession already.
Interest Rates set by State Bank of Pakistan - 12 to 13%
LESS THAN YEAR FROM NOW, PAKISTAN WILL GO BANKRUPT!
Potential outcomes and solutions will be included in my next post.
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