BUSINESS COMMUNICATION REPORT

DEBT TRAPCan we get out of it??

BY: Zaineb SyedTaimoor AliSaad Munir

FAST – National University of Computer and Emerging Sciences

Introduction

• Debt

• Types of Debt

• Reasons for taking Debt

• Effect on economy

Pakistan and Debt

• Amount of debt

• Debt Trend

Pakistan Debt Trend

**Reference :www.nbp.com.pk/debt_amnt.html

Countries/Organizations to pay back Debt

• Financials Institutions

– IDA

– IBRD

– ADB

– IFAD

• Islamic countries/Bank

– Kuwait

– Saudi Arabia

– Islamic Bank

– Turkey

Non-consortium countries

– Korea

– China

– Russia

– Australia,

Countries/Organizations to pay back Debt

• Consortium countries

– Japan– USA– Germany– France– Canada– Italy– UK– Sweden

Reasons for giving debts to Pakistan

• Under developed country

• Strategy to manage Resources

• Improve relations with Pakistan

Debt Trap

• Is Pakistan in a DEBT TRAP??

• YES

Government Saving Trend(Billion Rs.)

-120

-100

-80

-60

-40

-20

0

20

1980-85 1985-90 1990-96 1996-99 1995-96 1996-97 1989-99 1989-99 1999-2000

Selected Years

Go

vern

men

t S

avin

gs

(in

Bil

lio

n R

s)

(Billion Rs.)

Reasons for Taking Debt

• Corruption

• Political Instability

• Under performing Government Departments

Reasons for Increase in Debt

• Increase in Government Spending

• Exports Deficit

• Unplanned use of the Money

Conclusions

• Pakistan completely buried in the Debt Trap

• No Political Strategy and Harmony

• Inefficient use of resources

• Western Influence on the decisions

Recommendations

• Political Stability

• Accountability

• Economic Conditions

• Privatization

• Law and Order

References

• WEBSITES• http://www.pbs.org/wgbh/commandingheights/lo/countries/pk/pk_link s.html• http://www.finance.gov.pk/other/debt.pdf• http://www.nbp.com.pk/financials/external_debt.pdf• http://www.stat.com.pk/debt.html• http://www.wikipedia.com/demographics/pk92_876l.html• http://www.databook.com/eco/debt/pakistan.html

• Search Engines:• • Google www.google.com• Wikipedia www.wikipedia.com• Dogpile www.dogpile.com• Answers www.answers.com

• Economists:•• Dr. M . Khan Malik• Researcher in Economics with collaboration of • Cambridge University, UK• • Prof . Yasir Javed

Lecturer in economics Department Of economics PUNJAB UNIVERSITY

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