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Pakistan formally inagurates Iran joining CPEC with Rimdan Market Free Zone

Aspen

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Making radical decisions like switching oil supply from KSA to Iran is suicidal. Pakistan should gradually improve economic cooperation with Iran and slowly distance itself from KSA if the relationship is no longer as beneficial as it should be.
Yeah it is suicidal for the Saudis, not for us. Maybe they should finally realize there are some consequences for their actions. They have been doing their best to alienate us at every turn. Why should we keep rewarding them for pissing us off by buying oil from them when we have a choice to buy cheaper from Iran?
 

_NOBODY_

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Yeah it is suicidal for the Saudis, not for us. Maybe they should finally realize there are some consequences for their actions. They have been doing their best to alienate us at every turn. Why should we keep rewarding them for pissing us off by buying oil from them when we have a choice to buy cheaper from Iran?
Pakistani expats in living in KSA can be easily replaced by Indians and Bengalis.
 

Aspen

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Pakistanis currently living in Pakistan are already struggling with unemployment so how will Pakistan provide employment to the one million Pakistanis living in KSA when it is already struggling to provide employment to the people living here.
Because the hundreds of millions of dollars that we save by buying oil from Iran instead of Saudi will most likely be redirected toward other infrastructure and development projects that will require gov't to go on a hiring spree.

Buying oil from Iran also has a double benefit for Pakistan because it will likely be done in a currency other than USD which means that it will significantly reduce external pressure on PKR currency against USD and this will strengthen value of PKR dramatically over the long term, as Saudi requires only USD for oil but now Pakistan can buy less USD for oil since Iran prefers currency other than USD. The less USD Pakistan buys, the stronger PKR gets. If Pakistan stops buying hundreds of millions of USD just for oil over course of 5-10 years and diverts that money to other currencies by buying from Iran at discount rate, it will have a huge and visible positive impact on Pakistan's economy value of PKR will increase significantly.

In my opinion this is one of the most important steps gov't could take to revive economy and deficit crisis.

If Imran Khan signs exclusive oil deal with Iran and switches all energy supply from Saudi to Iran, then I will vote PTI rest of my life.
 

_NOBODY_

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Because the hundreds of millions of dollars that we save by buying oil from Iran instead of Saudi will most likely be redirected toward other infrastructure and development projects that will require gov't to go on a hiring spree.

Buying oil from Iran also has a double benefit for Pakistan because it will likely be done in a currency other than USD which means that it will significantly reduce external pressure on PKR currency against USD and this will strengthen value of PKR dramatically over the long term, as Saudi requires only USD for oil but now Pakistan can buy less USD for oil since Iran prefers currency other than USD. The less USD Pakistan buys, the stronger PKR gets. If Pakistan stops buying hundreds of millions of USD just for oil over course of 5-10 years and diverts that money to other currencies by buying from Iran at discount rate, it will have a huge and visible positive impact on Pakistan's economy value of PKR will increase significantly.

In my opinion this is one of the most important steps gov't could take to revive economy and deficit crisis.

If Imran Khan signs exclusive oil deal with Iran and switches all energy supply from Saudi to Iran, then I will vote PTI rest of my life.
All of this sounds wonderful when you ignore the billion of USD worth of remittances we get from our Pakistani expats living in KSA.
 

El Sidd

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If Imran Khan signs exclusive oil deal with Iran and switches all energy supply from Saudi to Iran, then I will vote PTI rest of my life.
He tried. Modi is too stupid
All of this sounds wonderful when you ignore the billion of USD worth of remittances we get from our Pakistani expats living in KSA.
Talk Hydrogen. Who talks about gas and oil in 2021
 

Aspen

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All of this sounds wonderful when you ignore the billion of USD worth of remittances we get from our Pakistani expats living in KSA.
I think you are not understanding the scale of just how much money will be saved by buying oil from Iran instead of Saudi.

Remittances are peanuts compared to all the money that would be saved by switching energy supply from Saudis to Iran.

Iranian oil is not a little bit cheaper, its a lot cheaper. It won't be free but if Pakistan has good negotiators at the table and makes Iran and offer it can't refuse like switching all energy supply to buy exclusively from Iran for next 10 years, we should be able to get at least get 40-50% discount on what we are paying Saudis currently. Do you have any clue how much money this will save Pakistan's economy? Fiscal stress on economy would be significantly reduced, currency gets stronger, debt obligations could now finally be paid down and met on time, IMF bailouts in Pakistan could finally become a thing of the past in will all of this new cash freed up in economy to spend on other things besides oil.

Remittances are maybe a few billion. The money we would save from switching oil supply from Saudi to Iran over long term period of 5-10 years could be anywhere between tens of billions to hundreds of billions. But it will be a hell of a lot more than any remittances and that is an open and shut fact.
 

313ghazi

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Pakistanis currently living in Pakistan are already struggling with unemployment so how will Pakistan provide employment to the one million Pakistanis living in KSA when it is already struggling to provide employment to the people living here.
Pakistani's should generate employment. We are in a free country, we don't need the state to generate jobs for us - well we shouldn't do.

If every single one of us living abroad were kicked out and sent back to Pakistan, we might not live the same comfortable lives we live now, but i can assure you 95% of us would have no problem earning a decent living.

I was watching a video a few weeks ago about a cleaning company. A single mother started by cleaning homes for people, she got busy and hired another lady to work with her, slowly she hired more and more ladies and today she doesn't clean anything because other ladies are doing the work and she is paying them a salary. She is taking on office buildings and commercial properties. Her full time job now is to find new contracts and find people to fulfill those contracts.

No government gave her a job.
 

313ghazi

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@Aspen i agree with @_NOBODY_ in terms of switching suppliers.

We can't be sure what aggression American regimes will take against Iran, its not in our best interests to put all our eggs in that basket. Also if we have multiple suppliers we can create competition for prices.
 

Aspen

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Pakistani's should generate employment. We are in a free country, we don't need the state to generate jobs for us - well we shouldn't do.

If every single one of us living abroad were kicked out and sent back to Pakistan, we might not live the same comfortable lives we live now, but i can assure you 95% of us would have no problem earning a decent living.

I was watching a video a few weeks ago about a cleaning company. A single mother started by cleaning homes for people, she got busy and hired another lady to work with her, slowly she hired more and more ladies and today she doesn't clean anything because other ladies are doing the work and she is paying them a salary. She is taking on office buildings and commercial properties. Her full time job now is to find new contracts and find people to fulfill those contracts.

No government gave her a job.
For current PTI gov't, the best problem they can have is too many people who need a high paying job. The worst problem they could have is too many educated people leaving. Be careful what you wish for.

If Pakistan plays its cards right, Saudi expelling well educated Pakistani workers back to Pakistan could be a blessing in disguise. What Pakistan really needs right now is a huge influx of educated workers, but we have no way to force them to come back unless Saudis do it for us. If Pakistan can give them high paying jobs, maybe they will stay instead of going back to Gulf. It's a once in a lifetime opportunity. We are talking millions of well educated Pakistanis coming back to Pakistan and securing high paying jobs to strengthen Pakistan's economy and increase middle class across all job sectors over a short period of time.
 

_NOBODY_

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Pakistani's should generate employment. We are in a free country, we don't need the state to generate jobs for us - well we shouldn't do.

If every single one of us living abroad were kicked out and sent back to Pakistan, we might not live the same comfortable lives we live now, but i can assure you 95% of us would have no problem earning a decent living.

I was watching a video a few weeks ago about a cleaning company. A single mother started by cleaning homes for people, she got busy and hired another lady to work with her, slowly she hired more and more ladies and today she doesn't clean anything because other ladies are doing the work and she is paying them a salary. She is taking on office buildings and commercial properties. Her full time job now is to find new contracts and find people to fulfill those contracts.

No government gave her a job.
That's a lovely story but many middleclass people in our country only want a job that is of their "caliber".
 

Aspen

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That's a lovely story but many middleclass people in our country only want a job that is of their "caliber".
Yeah that's part of the problem
Any news about its effect on Chah'bahar port?
Well its not far from Chabahar so this free zone will probably become the main transit zone between Gwadar and Chabahar so that is a pretty big deal to say the least.
 

Invicta

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That's a lovely story but many middleclass people in our country only want a job that is of their "caliber".
Define "caliber" - I have heard this word used by other Pakistanis as well and struggled to understand the logic behind scaling different jobs/professions.

I was always taught, work is work, doesn't matter what you are doing as long as its not illegal. Why Pakistanis try and find calibre in jobs - it just doesn't make sense to me.

I cleaned floors and worked as a waiter when I was young now I am a professional engineer, what difference does a job (calibre) makes.
 

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