• Monday, June 17, 2019

Pakistan bailout: IMF wants details of jet, submarine deals with China

Discussion in 'Strategic & Foreign Affairs' started by Pied Piper, Apr 15, 2019.

  1. Pied Piper

    Pied Piper FULL MEMBER

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    Salaam! :coffee:

    https://www.theweek.in/news/world/p...s-details-jet-submarine-china.html-china.html

    Pakistan bailout: IMF wants details of jet, submarine deals with China
    There are worries in the IMF Pakistan could use the bailout to repay Chinese loans

    Web DeskApril 15, 2019 14:45 IST
    [​IMG]A Chinese Yuan class submarine | Wikimedia Commons
    A Pakistani newspaper reported on Monday that the International Monetary Fund (IMF) has insisted that Islamabad disclose details of ventures with China, including manufacture of JF-17 fighter jets and procurement of submarines, as a condition for sanctioning a bailout package that could be worth up to $12 billion.

    Dawn reported, “the visit of an IMF mission to Islamabad for finalising a bailout package for Pakistan may be delayed as both sides are still engaged in an intense discussion.” In addition to requiring Pakistan to carry out sweeping economic reforms, the IMF has sought “full disclosure” on all financial cooperation between China and Pakistan. This includes “assistance related to infrastructure development, nuclear power plants, joint manufacturing of JF-17 Thunder fighter jets and procurement of submarines,” according to Dawn.

    The newspaper added the IMF has sought details of commercial loans worth over $6.5 billion that Pakistan had received from China in the past two-three years.

    “IMF officials were also seeking details of the China-Pakistan Economic Corridor (CPEC), along with a written guarantee from both Pakistan and China that the IMF assistance will not be used to repay loans to China,” Dawn reported.

    The requirements highlight the fear in the IMF that Pakistan would use an IMF bailout to repay Chinese loans. Earlier this month, three US lawmakers urged the Donald Trump administration to oppose an IMF bailout to Pakistan on the grounds it would finance repayment of Chinese loans. China is investing over $60 billion in Pakistan as part of various projects under CPEC.

    This is expected to be the 14thbailout package Pakistan is receiving from the IMF. Pakistan Finance Minister Asad Umar had announced in late March he expected the IMF bailout package to be secured by mid-May.

    The JF-17 is the most high-profile strategic venture between Pakistan and China. The Chinese-developed fighter was put into production with Pakistani financing and the Pakistan Air Force is expected to have a fleet of over 150 JF-17 fighters. The JF-17 is expected to replace older Chinese and French-built fighters in the inventory of the Pakistan Air Force. In March, a state-owned media organisation in China reported the JF-17 would getting a radar upgrade.

    In December 2018, the New York Times reported China and Pakistan had a “confidential plan” to jointly build a new generation of fighter aircraft and other weapons in a special economic zone built as part of CPEC.

    ALSO READ
    In October 2015, Pakistan and China finalised a deal to build eight conventional submarines. Four of the vessels would be built in China and the remainder in Karachi. The deal was a watershed for the Pakistan Navy as it has been operating French-built submarines for over 40 years.

    The new submarines are thought to be variants of the Chinese Yuan-class ships and will begin delivery to the Pakistan Navy by 2022. In addition to being able to carry torpedoes and anti-ship missiles, there are fears Pakistan could use the new submarines to carry nuclear-armed cruise missiles for a 'second strike' capabilityagainst India.

    Both programmes are perceived as being vital for the Pakistani military as it seeks to upgrade it navy and air force. Pakistan is also buying four surface warships from China.
     
  2. Shabi1

    Shabi1 FULL MEMBER

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  3. PeaceBeWithYou

    PeaceBeWithYou SENIOR MEMBER

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    India alone can't influence IMF, it has just 2.7% of total voting shares..
     
    Last edited: Apr 15, 2019
  4. Pied Piper

    Pied Piper FULL MEMBER

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    Agree... Totally obsessed with Pakistan..
    I just hope the Pakistanis are very shrewed in dealing with the IMF

    However, India's constant lobbying does give it some influence for the example the FATF issue.
     
  5. Max

    Max SENIOR MEMBER

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    Why repaying Chinese loan is Taboo for IMF? China is also member of IMF, infact 3rd largest party after US and Japan.
     
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  6. Pied Piper

    Pied Piper FULL MEMBER

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    https://www.geo.tv/latest/234184-pakistan-imf-bailout-talks-finalised-sources


    Pakistan, IMF bailout talks finalised
    Business
    Ashraf Malkham
    April 15,2019
    IMF agrees to a three-year bailout package for Pakistan, sources say

    Share

    [​IMG]
    Gigh-level delegation led by Finance Minister Asad Umar met with IMF and World Bank officials on the sidelines of the annual Spring Meeting in Washington, DC.
    ISLAMABAD: The International Monetary Fund (IMF) has finalised a bailout package for Pakistan as talks between the two sides were finalised during a recent visit by the Pakistani delegation to the United States, Finance Minister Asad Umar said on Monday.

    Briefing the National Assembly's Standing Committee on Finance, Revenue and Economic Affairs chaired byFaizullah Kamoka, the finance minister said the talks with the IMF and World Bank were positive and Pakistan would receive funds from the World Bank and Asian Development Bank immediately following the IMF bailout.

    Umar said the IMF package would ease off pressure from the country's foreign reserves.

    External account pressure reduced Pakistan's international reserves to $6.6 billion by mid-January 2019, but with short-term financing from Saudi Arabia, the United Arab Emirates and China, foreign reserves increased to $10.5 billion at the end of March.

    The finance minister further assured that the capital market would also improve following the IMF programme.

    Umar told the committee that an IMF mission will visit Islamabad during the last week of April, which is when the bailout package amount will be finalised.

    Sources earlier said the IMF agreed to a three-year bailout package for Pakistan, after a high-level delegation led by Finance Minister Asad Umar met with IMF and World Bank officials on the sidelines of the annual Spring Meeting in Washington, DC.

    The world lender did not object to an asset declaration scheme proposed by Pakistan, the sources added, pointing out that Pakistan had already shared a draft of the proposed scheme with the IMF and the Financial Action Task Force.

    Asad Umar is also set to meet Prime Minister Imran Khan and take him into confidence regarding the IMF talks.

    Information Minister Fawad Chaudhry, speaking to media earlier today, said the finance minister will inform the nation regarding the IMF agreement in the coming days.

    Chaudhry said the country can expect some major news about the economy within the next two days.

    “Pakistan’s economy is moving towards strength,” he said, adding that there had been “positive progress” with the Paris-based anti-terror laundering watchdog FATF as well.
     
  7. PeaceBeWithYou

    PeaceBeWithYou SENIOR MEMBER

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    you may be right...any idea why Pakistan is not a member of FATF?
     
  8. Aryan0395

    Aryan0395 FULL MEMBER

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    exactly, 3rd largest, not the largest.
    Imagine a scenario that China is at USA's position and India is at China's todays position in global order. Both are party to ADB, china being the largest. India has provided loans to many economies and many of those are reeling under debt so they approach ADB for bailout.
    Do u think China would sit in a corner while ADB gives money so it can fill India's pocket?
     
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  9. Max

    Max SENIOR MEMBER

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    Then why is China in IMF if it cant support its allies in difficult times. anyways The media is reporting deal is finalized and IMF board will approve it by end of this month.
     
  10. Pied Piper

    Pied Piper FULL MEMBER

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    Possibly because Pakistani lobby team was not doing their job properly or did not take the issues seriously. Also probably because most of the key players are anti-pakistani and would like to subdue a potential Strong Muslim countries.
    The key players have weakend and in some cases destroyed other Muslim countries that were deemed to be strong - Iraq, Libya , Syria etc.....etc...

    These countries are trying their best of damaging countries such as Turkey, Eqypt, and Pakistan... .hence the key players will be able to 'rape and plunder' these rich resource countries
     
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  11. war&peace

    war&peace ELITE MEMBER

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    Indians can only lie.... pathetic unhappy & jealous low lives.
     
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  12. PeaceBeWithYou

    PeaceBeWithYou SENIOR MEMBER

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    post reported as insulting with no value to the discussion. May be you need to review your comments and throw some light if I have lied about anything.
     
  13. Shabi1

    Shabi1 FULL MEMBER

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    Meant credibility of source. Lately Indian media has been churning out alot of fabricated feel good content aimed at local audience.

    And since the whole Balakot ordeal even the ones which had some credibility have lost it. Still waiting for 200-300 bodies proof. So unless news corroborated from a neutral source it's fake and should be posted at Bharat Rakshak rather than here.
     
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  14. war&peace

    war&peace ELITE MEMBER

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    You're most welcome..
     
  15. IceCold

    IceCold PDF VETERAN

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    ant gonna happen.
     
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