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Pakistan trying to reach ‘debt for nature’ swap deal with creditors: PM

swnjo

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This is only for country on the verge of default...just a tokenism...this is pure insult and process itself is to teach aukat.
trying all they could to gather anyfund from any possible way. FATF grey list made it even more harder plus years of poor economic growth , on top of that Pakistanis like to show of with stuff like expensive imported goods. the other day someone was making fun of Indians using inferior cheap phones and single door refrigerators and how an avg pakistani is more wealthier than indian counterpart, because everything is hidden gdp and nobody pay taxes. well. i hope you got the point:enjoy:. its easy to show off.
 

Markandeya

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Salaam




Bro, I think we should remain civil in our discussions. That is certainly not called for. I hope you don't mind me pointing that out.




Meh, its a product like any other sold to interested parties.

The people who actually pay are Western countries wanting to reach their climate goals by purchasing (through long processes) the credits they need.

It's a much bigger thing for Western countries than countries like India and Pakistan who aren't at that stage of development. So I can understand why you would take it as nothing more than tokenism and to teach 'aukat'. We aren't there yet

Read the link. It details everything. Do not eulogise the poison pill....it is ...what it is


Carbon credit was another such gibbirish.....got flushed down the toilet.
 

N.Siddiqui

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trying all they could to gather anyfund from any possible way. FATF grey list made it even more harder plus years of poor economic growth , on top of that Pakistanis like to show of with stuff like expensive imported goods. the other day someone was making fun of Indians using inferior cheap phones and single door refrigerators and how an avg pakistani is more wealthier than indian counterpart, because everything is hidden gdp and nobody pay taxes. well. i hope you got the point:enjoy:. its easy to show off.


India: 9.88%

India's tax-GDP ratio plunges to 9.88% in FY20, lowest in 10 years. GDP growth for FY20 fell to an 11-year low of 4.2 per cent.24-Jun-2020


Pakistan:
The FBR has projected 10.9 percent tax-to-GDP ratio in 2020-21; 11.6 percent in 2021-22, and tax-to-GDP ratio has been projected at 12 percent for 2022-23.06-Oct-2020

The FBR envisaged an annual tax collection target of Rs4,963 billion for financial year 2020-21 against tax collection of Rs3,997 billion for fiscal year 2019-20.
 

Arulmozhi Varman

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Pakistan is presently working with international creditors on a debt-for-nature swap deal, in which relief will be linked to achievements in biodiversity conservation,” he wrote.
Pakistan also recently floated the country’s first green bond, amounting to $500 million, which was well received in the global market.

Can someone explain what this statement means? I mean I understand something called Green bond if the reason for a bond is for setting up a solar power plant or an electric car factory or something. So one needs to buy a bond for biodiversity which is a duty? Or how the govt will pay it back if the said bond do not generate money?
It looks like a new way to get more money.
 

Jungibaaz

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Can someone explain what this statement means? I mean I understand something called Green bond if the reason for a bond is for setting up a solar power plant or an electric car factory or something. So one needs to buy a bond for biodiversity which is a duty? Or how the govt will pay it back if the said bond do not generate money?
It looks like a new way to get more money.
It's not a financial swap in the way the name suggests nor is it a bond or any sort of tradeable security. It's an agreement between two parties, one creditor and one debtor (that's us), which stipulates that in return for reduction of debt burden or forgiveness of principle, the debtor should do x,y,z things in service of nature/environment/climate.



Why would a creditor do this? In order to help the debtor country, in order to advance its own climate objectives, also let's be fair, it's for leverage on the debtor too, and there's a diplomatic element. Plenty of countries and international lenders were already allowing some level of debt forgiveness to third world countries, this is just a nicer and much more mutually beneficial way of doing it.

EU, and EU countries, as well as a few others, are all going big on ESG related activities. Whether that's massive sustainability drives via national agencies, supranational development banks, or other quasi-sovereign entities. Governments and all their related entities are involving themselves in green, social, and sustainability projects. You mentioned green bonds which is a really hot market right now. The biggest players in this market are Sovereigns, and near-sovereign entities aka SSAs.


This is only for country on the verge of default...just a tokenism...this is pure insult and process itself is to teach aukat.
Pakistan has never defaulted in history, and we aren't about to any time soon. Get your facts right.
 
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Arulmozhi Varman

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It's not a financial swap in the way the name suggests nor is it a bond or any sort of tradeable security. It's an agreement between two parties, one creditor and one debtor (that's us), which stipulates that in return for reduction of debt burden or forgiveness of principle, the debtor should do x,y,z things in service of nature/environment/climate.



Why would a creditor do this? In order to help the debtor country, in order to advance its own climate objectives, also let's be fair, it's for leverage on the debtor too, and there's a diplomatic element. Plenty of countries and international lenders were already allowing some level of debt forgiveness to third world countries, this is just a nicer and much more mutually beneficial way of doing it.

EU, and EU countries, as well as a few others, are all going big on ESG related activities. Whether that's massive sustainability drives via national agencies, supranational development banks, or other quasi-sovereign entities. Governments and all their related entities are involving themselves in green, social, and sustainability projects. You mentioned green bonds which is a really hot market right now. The biggest players in this market are Sovereigns, and near-sovereign entities aka SSAs.




Pakistan has never defaulted in history, and we aren't about to any time soon. Get your facts right.
Thanks for the explanation. It's just the target amount of 500m is too steep considering the largest creditor in Pakistani case are the Chinese. Will they consider?
These kind of climate credits are more prevalent in western countries only.
And debt forgiveness will rarely happen in the principal, it's most possible and probable in interests and Pakistan can still save a significant amount of money obtained through WB, IMF or corporate financial banks.
And I thought some Pakistanis are against dealing with Western entities.
 

Markandeya

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India: 9.88%

India's tax-GDP ratio plunges to 9.88% in FY20, lowest in 10 years. GDP growth for FY20 fell to an 11-year low of 4.2 per cent.24-Jun-2020


Pakistan:
The FBR has projected 10.9 percent tax-to-GDP ratio in 2020-21; 11.6 percent in 2021-22, and tax-to-GDP ratio has been projected at 12 percent for 2022-23.06-Oct-2020

The FBR envisaged an annual tax collection target of Rs4,963 billion for financial year 2020-21 against tax collection of Rs3,997 billion for fiscal year 2019-20.
FY 20 we locked ourself...completely..totally...country wide...for 6 months. Can you guys get this.

Stilll it fell by 9% , instead of 50%......what dors it say.

Why is mkt capitalization of BSE crossed 3 trillion? People with money understand where future lies....
It's not a financial swap in the way the name suggests nor is it a bond or any sort of tradeable security. It's an agreement between two parties, one creditor and one debtor (that's us), which stipulates that in return for reduction of debt burden or forgiveness of principle, the debtor should do x,y,z things in service of nature/environment/climate.



Why would a creditor do this? In order to help the debtor country, in order to advance its own climate objectives, also let's be fair, it's for leverage on the debtor too, and there's a diplomatic element. Plenty of countries and international lenders were already allowing some level of debt forgiveness to third world countries, this is just a nicer and much more mutually beneficial way of doing it.

EU, and EU countries, as well as a few others, are all going big on ESG related activities. Whether that's massive sustainability drives via national agencies, supranational development banks, or other quasi-sovereign entities. Governments and all their related entities are involving themselves in green, social, and sustainability projects. You mentioned green bonds which is a really hot market right now. The biggest players in this market are Sovereigns, and near-sovereign entities aka SSAs.




Pakistan has never defaulted in history, and we aren't about to any time soon. Get your facts right.

Only a country on the brink of default is eligible to offer this service....Else you are not eligible.

Guys read the product. Its all there.
 

Goritoes

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IK has to take action against Corruption, Since i get here to America I met so many Pakistanis who are wanting to invest so much in Pakistan but the Provincial Govts and Govt Officers are asking for Bribes.
 

Adonis

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Pakistan trying to reach ‘debt for nature’ swap deal with creditors: PM
Anwar IqbalPublished June 7, 2021 - Updated a day ago
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Prime Minister Imran Khan addresses a ceremony in Islamabad on World Environment Day on June 5. — Photo courtesy Radio Pakistan

Prime Minister Imran Khan addresses a ceremony in Islamabad on World Environment Day on June 5. — Photo courtesy Radio Pakistan


WASHINGTON: Prime Minister Imran Khan said on Sunday that Pakistan was working with international creditors on a debt-for-nature swap deal, which links financial relief to improvement in a country’s environment.

In an opinion piece he wrote for CNN on the World Environment Day, Mr Khan emphasised the need for a partnership between governments and financial institutions to stop the rapid degradation of the global environment.
“Pakistan is presently working with international creditors on a debt-for-nature swap deal, in which relief will be linked to achievements in biodiversity conservation,” he wrote.
Pakistan also recently floated the country’s first green bond, amounting to $500 million, which was well received in the global market.

The prime minister said Pakistan fully endorsed the UN decade (2021-2030) on ecosystems and was already working on an ambitious plan to expand and restore its forests, having already planted one billion trees and mangroves as part of its 10 billion tree drive.
“Pakistan’s mangrove coverage has increased by 300 percent over the past decade, making it the world’s only country with an expanding mangrove cover,” he added.

Mr Khan noted that during the first phase of the Bonn Challenge, Pakistan pledged to restore 865,000 acres of degraded landscape in Khyber Pakhtunkhwa — a target already surpassed.

“Now we voluntarily pledge a much larger national target under the Bonn Challenge for restoring almost 2.5 million acres of degraded/deforested lands across the country by 2023,” he wrote.
The prime minister regretted that decades of negligence had put the country on the list of countries most threatened by climate change, but pointed out that “what is true for Pakistan is true for the world at large”.
“One-third of global farmlands are highly degraded today, partially … forests have been disappearing at alarming rates in Pakistan and across the planet,” he wrote.

Mr Khan warned that this degradation was threatening global development, food security, and peace as congested and polluted urban spaces posed serious health and economic risks.
“As cities lose their vegetation and encroach into forests that surround them, they become more vulnerable to floods, which Pakistan is all too familiar with,” he wrote.

The prime minister noted that when he was growing up, Lahore was called the “City of Gardens”,’ but since then “cars and concrete buildings” had replaced “the sprawling mango and guava trees across the city, while previously clean canals are tarnished with countless single-use plastic water sachets”.
Published in Dawn, June 7th, 2021


Asking for more debt? ... this time in the name of environment. Bravo!!

It's quite ironic that on one hand, Pakistan is allowing Chinese to set up coal based power plants, it's deforestation rate is second highest in Asia (forest land being sold for housing development, hotels etc)......on the other hand they are shedding crocodile tears in the name of environment.
 

CrazyZ

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Try to get as much debt amnesty as possible, don't be bashful. If GDP growth continues to accelerate, Debt to GDP will fall on its own. Also a large portion of Pakistan debt is external issued in dollars. USA will continue to print and pump huge amounts a dollars into the global economy. And USD will be weak for years. Over this period, Pakistan should boost exports to get as much of USD's as possible and convert USD debt into PKR debt.
 

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