• Saturday, December 7, 2019

China allows $1 billion as budgetary support to Paksitan

Discussion in 'World Affairs' started by AnnoyingOrange, Jun 24, 2013.

  1. AnnoyingOrange

    AnnoyingOrange BANNED

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    China has come in a major way to rescue the ailing Pakistan economy by allowing the utilisation of $1 billion under the China’s Safe Deposits for meeting the budgetary support requirements of Islamabad.

    At a time when the Chinese tourists are becoming victims of terrorist attacks in Pakistan, Beijing has come a long way for creating substantial fiscal space of Rs99 billion for the PML-N government during the next financial year, starting July 1, 2013.

    “For the first time, China has allowed the Pakistani government to utilise this money for budgetary support which was basically extended by Beijing for the purpose of only boosting the foreign currency reserves held by the State Bank of Pakistan (SBP),” official sources confirmed to The News here on Sunday. It can be termed substantial assistance to Pakistan when the country is facing severe financial crunch.

    When contacted and inquired whether China had allowed Islamabad to utilise its deposits of $1 billion for budgetary support, Governor State Bank of Pakistan Yaseen Anwar replied, “Both deposits are on the books of Ministry of Finance, so yes they can be used for the budgetary support.”

    To another query that when China had granted permission to this effect, the SBP governor said that this money would not only be used for boosting the foreign reserves but the Ministry of Finance also had the option to take rupee equivalent to that amount.

    When he was told that the Ministry of Finance had included this amount in the foreign assistance estimates for fiscal year 2013-14, he said it confirmed that the rupee component was being used.

    According to the plan for 2013-14, the PML-N led government is hoping that it will receive more than double the foreign assistance in the next fiscal year as the total inflows will touch the mark of Rs576 billion against the revised estimates of Rs243 billion for the outgoing fiscal year. The major increase in foreign inflows has been estimated in the wake of two major factors including the revival of programme loans from the World Bank and Asian Development Bank in the aftermath of Islamabad’s decision to go under the scrutiny of the IMF programme and the second factor will be the Chinese assistance to the budgetary support to the tune of Rs100 billion.

    Earlier, sources mentioned that the PML-N led government had inserted a substantial increase in shape of receiving capital receipts in the budget documents for 2013-14 as inflows under the heading of others went up from Rs30.418 billion in the outgoing fiscal year to Rs192 billion in the fiscal year 2013-14.

    Such an unprecedented increase in inflows resulted in raising eyebrows of many concerned officials as some officials also hinted at the possibility of Saudi assistance as a major factor for this whopping increase.

    When this scribe contacted Finance Minister Ishaq Dar and inquired about the reasons for the sharp increase in inflows, the minister said that the government did not hide anything and every detail in this connection was available in the budget documents.

    However, the budget documents for 2013-14 clearly illustrate under the foreign assistance that China’s Safe Deposits would be standing at Rs99 billion in 2013-14 compared to zero amount in the outgoing fiscal year 2012-13.

    The government also expects to generate Rs49 billion through the rollover of $500 million from the Islamic Development Bank (IDB) and another $500 million (Rs49 billion) through Eurobond in 2013-14.

    http://www.thenews.com.pk/Todays-News-13-23688-China-allows-$1-billion-as-budgetary-support


    Somehow reminds me of this article ...

    Sixty years of US aid to Pakistan: Get the data | Global development | guardian.co.uk

    the same story being repeated ...first it was US now its China.
     
  2. Leader

    Leader ELITE MEMBER

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    good...........
     
  3. Parul

    Parul BANNED

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    A friend in need is friend indeed .....:china: :pakistan:
     
  4. Chinese-Dragon

    Chinese-Dragon PDF THINK TANK: ANALYST

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    No, the USA gives them billions of dollars in military aid every year.

    Whereas this is an emergency fund for their budgetary crisis.

    Catching and executing those guys who murdered several Chinese tourists would be a good step, to return good will.
     
  5. SirHatesALot

    SirHatesALot SENIOR MEMBER

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    This will help Pakistan good move indeed.
     
  6. harpoon

    harpoon ELITE MEMBER

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    Which helped Pakistan to divert precious resources to other things like infrastructure development. In way its much more important for a country like Pakistan which spends a large percentage of their national budget on defense.
     
  7. OrionHunter

    OrionHunter ELITE MEMBER

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    But remember, there are no freebies in this world. The devil will be in the detail. What is the interest rate and for how many years? This isn't aid that will be written off by the Chinese.....Or is it? :pop:
     
  8. Developereo

    Developereo ELITE MEMBER

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    The terms are likely to be more favorable than anything from IMF or WB.

    It's a good gesture from China, but likely wasted in the long run, since Nawaaz Sharif is a confirmed crook who will never make the fundamental tax changes needed to make Pakistani self-sufficient.
     
  9. Pandora

    Pandora SENIOR MEMBER

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    China comes to rescue again. :china::pakistan: All hail Pak China Friendship.
     
  10. airmarshal

    airmarshal SENIOR MEMBER

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    Wow!! What a country we have!! First we were begging US and now we beg China. when will we get real independence? We talk bombastically about our sovereignty. Didn't we just sell this commodity for a billion dollars? What the hell!!
     
  11. ChinaToday

    ChinaToday SENIOR MEMBER

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    China and Pakistan we support each others in time of crisis very good move by the Chinese government
     
  12. Jungibaaz

    Jungibaaz PDF THINK TANK: CONSULTANT

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    Our greatest ally :china:
    Thank you very much.

    Right now, we need it.
    And say what you will, we could really do with it.

    Though I agree with the sentiment here.
    We appreciate China's offer to help us.
    However, we need to learn how to stand on our won two feet.
     
  13. StarCraft_ZT

    StarCraft_ZT FULL MEMBER

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    Japan used to offer China with 0.75%-1.5% interest loan through 30 years. The estimated total amount is $46 billion USD(at current exchange rate). Also, the Soviet Union gave us economic support for 7 years.
    We used that low interes loan to establish a very complete industrial structure, including machine manufacturing, spinning, mining, chemical, iron.... so, we can depend on ourselves, because we have a complete industrial structure, unlike India only with IT (outsourced).
    Money can be used up or wasted some day in the future, but we can use the money to establish a highly output industry system(all the catagories of industry). We call this "to teach how to fish is better than just to offer the fish" 授人以鱼不如授人以渔
    With the complete industrial structure, we can make many things, we will not rely heavily on other countries. I belive that Parkistan already knew this, Pakistan will have a better economy without support. Best wishes to Pakistan.
     
  14. rubyjackass

    rubyjackass SENIOR MEMBER

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    China finally responded to criticism that Pakistan gets no benefit out of their relationship. What is odd, though probably not for Pakistan, is that the MoF projects doubling of aid in the next fiscal year so that they can add that to the budget's resources. I thought that finance ministries only project increase in revenues and plan their way. But for aid?!
     
  15. Devil Soul

    Devil Soul ELITE MEMBER

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    and this news comes out the very next day of Chinese being killed.... :china: :pakistan:
    this will not go down well for few... Hajmola on the house :D