Last Resort to Salvage the Sinking Economic Ship

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KARACHI: The country’s default risk as measured by five-year credit-default swaps (CDS) — insurance contracts that protect an investor against a default — rose sharply overnight amid political turmoil and uncertainty about talks with the International Monetary Fund (IMF).

The CDS soared to 75.5 per cent on Wednesday from 56.2pc a day ago, according to data provided by research firm Arif Habib Limited.

www.dawn.com/news/1721411/default-risk-soars-amid-political-turmoil-delay-in-imf-talks

Dear Mr. Prime Minister

According to the above report the country’s default risk rose sharply from 56.2% to 75.5% which is really an alarming situation.

Under the current emergency situation the only safe and risk free situation to bail out Pakistan’s economy from the abyss is the proposal repeatedly submitted to you and once again given below for your MOST URGENT consideration in the largest national interest:

SOS MAGICAL Suggestions to jump start economy of Pakistan.

Dear Mr. Prime Minister Muhammad Shahbaz Sharif Sahab.

AoA.

Sir,

Moody’s downgrades Pakistan’s rating to Caa1.

Extremely adverse comments from International Ratings agency Moody’s on Pakistan’s current economic situation. They have also predicted bleak picture of Pakistan’s economy.

In this regard, if somehow, foreign currency is channelised into Pakistani banks the situation can suddenly improve.

In this connection, like the government is already giving an annual profit of 6.75% (payable bi-annually) on Pakistan Banao Certificates, with full guarantee of government of Pakistan, we can easily, quickly and comfortably get around over $10 billion, if, you approve the launch of another scheme of annual profit of 6.75% (payable bi-annually with fully backed GoP guarantee) on fresh foreign currency bank deposits in Pakistan.

The beauty of this scheme is that (since this much profit is currently nowhere available in the world) even foreign banks will offer (as happened in India) foreign currency loans (at around 3-4%) to its clients to deposit funds in this scheme. Moreover, God forbid, if, for any reason, desired foreign currency inflows are not attracted in this scheme, government will lose nothing.

The above foreign currency bank deposits scheme should be available for all resident and non resident Pakistanis, under special permission of the GoP (like an amnesty scheme) and depositors NOT asked any questions about their sources of foreign currency funds.

In this connection, Pakistan should allow selected foreign country citizens of (China, Vietnam, Thailand, Australia, NewZealand, Saudi Arabia and all gulf and Arab Countries, Malaysia, Indonesia, Sri Lanka, Nepal, Bangladesh and all Central Asian countries which were part of former USSR, Turkey and if possible Afghanistan) to open their accounts in Pakistani banks. It is hoped that this may fetch us around 50 billion USD in just few months because nowhere in the world profits on USD from banks is more than 1% whereas, we will be providing 6.75 % profit.

Best Regards,

Syed Nayyar Uddin Ahmad
03219402157
Lahore.
17 November 2022.

Resubmitted on
6 October 22
Original proposal of
22 September 2022