Financial Cost of 2014th Sit-In
After Engineer Agha Waqar Pakistan got Asad Umar of PTI
In 2012, Pakistan got a scientist who destroyed (violated) basic Physics' law, the law of conservation of energy, now in 2016, Pakistan got Asad Umar of PTI who has destroyed (violated) basic principle of Finance: a dollar today is worth more than a dollar tomorrow (time value of money).
The 126-day instructed sit-in by PTI and PAT caused 6 month delay in the $50 billion investment in Pakistan which caused loss of billions of rupees to poor Pakistan. But Asad Umar of PTI while talking to Hamid Mir's program capital talk on geo TV challenged that their sit-in did not cause any financial harm to the country.
Financial Cost of the 2014th sit-in
The financial cost of the 2014th 126-day sit-in is much more than the six month time value of the $50 billion. If we only calculate the six month time value of $50 billion with 5% interest rate, then it is
Thus Pakistan suffered loss of $1.2345 billion (equivalently Rs.129.6 billion) due to 126-day sit-in Islamabad which caused a delay of six month in the $50 billion investment.
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- Present and Future Values
Time Value of Money in Simple Words
A: What is the cost of this house?
B: $10,000
A: I will purchase it for $10,000 next year
B: No. You cannot purchase it for $10,000 next year. It would be more expensive than this amount. There is Time Value of Money.
B: Similarly, you can build it this year for $5,000 but you cannot build it for $5,000 next year. The construction cost will go higher. It would be more expensive than the current $5,000.